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Previous: SL GREEN REALTY CORP, 8-K, 2000-10-25 |
Next: SL GREEN REALTY CORP, 8-K, EX-99.2, 2000-10-25 |
<PAGE>
[LETTERHEAD OF SL GREEN REALTY CORP.]
THIRD QUARTER
SUPPLEMENTAL DATA
SEPTEMBER 30, 2000
<PAGE>
SL Green Realty Corp. is a fully integrated, self-administered and self-managed
Real Estate Investment Trust (REIT) that primarily owns, manages, leases,
acquires and repositions Class B office properties in emerging, high-growth
submarkets of Manhattan.
-- SL Green's common stock and Preferred Income Equity Redeemable
Shares ("PIERS" SM), are listed on the New York Stock Exchange,
and trade under the symbols: SLG and SLG PrA respectively.
-- SL Green maintains an internet site at WWW.SLGREEN.COM at which
most key investor relations data pertaining to dividend
declaration, payout, current and historic share price, etc. can be
found. Such information is not reiterated in this supplemental
financial package. This supplemental financial package is
available through the Company's Internet site until the Company's
quarterly report on Form 10-Q is filed with the Securities and
Exchange Commission.
-- This data is presented to supplement audited and unaudited
regulatory filings of the Company and should be read in
conjunction with those filings. The financial data herein is
unaudited and is provided from the prospective of timeliness to
assist readers of quarterly and annual financial filings. As such,
data otherwise contained in future regulatory filings covering the
same period may be restated from the data presented herein.
-- Questions pertaining to the information contained herein should
be referred to David J. Nettina or Thomas E. Wirth at
[email protected] or [email protected] or at
212-594-2700.
This report includes certain statements that may be deemed to be
"forward-looking statements" within the meaning of Section 27A of the Securities
Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934,
as amended. All statements, other than statements of historical facts, included
in this report that address activities, events or developments that the Company
expects, believes or anticipates will or may occur in the future, including such
matters as future capital expenditures, dividends and acquisitions (including
the amount and nature thereof), expansion and other development trends of the
real estate industry, business strategies, expansion and growth of the Company's
operations and other such matters are forward-looking statements. These
statements are based on certain assumptions and analyses made by the Company in
light of its experience and its perception of historical trends, current
conditions, expected future developments and other factors it believes are
appropriate. Such statements are subject to a number of assumptions, risks and
uncertainties, general economic and business conditions, the business
opportunities that may be presented to and pursued by the Company, changes in
laws or regulations and other factors, many of which are beyond the control of
the Company. Any such statements are not guarantees of future performance and
actual results or developments may differ materially from those anticipated in
the forward-looking statements.
The following discussion related to the consolidated financial statements of the
Company should be read in conjunction with the financial statements for the
quarterly period ended September 30, 2000 that will subsequently be released on
Form 10-Q to be filed on or before November 15, 2000 and the 1999 audited
financial statements included in the Company's annual report on Form 10-K.
2
<PAGE>
<TABLE>
<CAPTION>
CONTENTS
PAGE
<S> <C>
Highlights of Current Period Financial Performance 4-8
Unaudited Financial Statements
Balance Sheet 9
Statement of Operations 11
Joint Venture Statements 13
Statement of Stockholders' Equity 15
Funds From Operations 16
Selected Financial Data 17-19
Summary of Debt and Ground Lease Arrangements 20-21
Property Data
Composition of Property Portfolio 22
Top Tenants 23
Leasing Activity Summary 24-26
Lease Expiration Schedules 27-28
Summary of Acquisition Activity 29
</TABLE>
3
<PAGE>
SL GREEN REALTY CORP.
THIRD QUARTER 2000
UNAUDITED
================================================================================
FINANCIAL HIGHLIGHTS
EARNINGS PERFORMANCE
o Third quarter Funds From Operations (FFO) were $20.1 million or
$0.70 per share (diluted), 21% better than one year ago, when FFO
was $15.9 million or $0.58 per share (diluted). Quarterly FFO
results exclude the net gain on the company's redemption of its
preferred interest in 1370 Avenue of the Americas ($5.6 million).
The 21% growth in FFO reflects contributions from the following:
o GAAP NOI from wholly-owned properties increased $2.9 million:
-- $1.0 million increase from wholly-owned properties acquired
in 1999.
-- $2.8 million increase from same store properties as GAAP
revenue increased $5.0 million, (i) $0.9 million due to an
increase in the weighted average occupancy rate from 95% in
1999 to 98% in 2000, primarily related to occupancy
improvements at 17 Battery, 1412 Broadway and 420 Lexington
Avenue and 711 Third Avenue; (ii) $2.0 million due to GAAP
replacement rents which were 42% higher than the previously
fully escalated rents, and (iii) increased escalation and
reimbursement income ($1.5 million) related to the increased
recovery ($1.1 million) of higher electric expense resulting
from the higher electric rates, higher real estate tax
escalations, and increased passthroughs ($0.3 million). The
increased electric recovery also includes a charge to recover
higher second quarter electric costs from electric inclusion
tenants. The increased electric recovery represented a 75%
recovery rate on the increased costs. Revenue gains were
partially offset by $2.0 million of higher operating costs
which resulted from: higher utility costs ($1.2 million)
primarily due to higher electric rates ($1.1 million) and
higher fuel costs ($0.1 million); higher payroll and cleaning
costs ($0.6 million). Real estate tax expense also increased
$0.2 million as assessed property values increased.
-- $1.1 million increase from the Company's joint ventures.
-- $2.0 million decrease from wholly-owned properties sold or
contributed to a joint venture.
4
<PAGE>
o The Company had higher interest costs ($2.9 million) associated
with: higher average debt levels due to acquisition and new
investment debt ($1.6 million), higher average debt levels
due to the funding of ongoing capital projects and working
capital requirements ($0.5 million), and higher interest rates
from floating rate debt ($0.8 million).
o MG&A decreased $0.4 million reflecting (i) increased amount of
costs being allocated to the Company's joint ventures and service
corporations (ii) reduction in expense due to an insurance refund,
and (iii) reduced contractual employee costs.
o Non-real estate depreciation increased $0.2 million due to
additional amortization of financing costs associated with the
company's new line of credit ($0.1 million) and increased
corporate fixed asset depreciation ($0.1 million).
OPERATING MARGINS
QUARTERLY
o Cash NOI in the 2000 "same store" portfolio rose 14% from $20.6
million to $23.5 million, and operating margins improved from
48.5% to 49.6%. GAAP NOI increased by $2.8 million, approximately
12% over a year ago. However, GAAP operating margins after ground
rent remained unchanged at 54.5% as operating expenses increased
at a greater rate than revenue.
Note: The properties comprising the 2000 same store portfolio
are listed on page 8.
One of the primary drivers increasing same store cash NOI is the
$4.5 million (11%) increase in total revenue combined with a $0.3
million reduction in free rent, resulting in a $4.8 million (12%)
increase in cash revenue. The decrease in free rent is primarily
due to 17 Battery.
The $4.5 million increase in total revenue is due to:
1. $1.0 million resulting from an increase of overall same store
occupancy from 95% to 98% with the largest occupancy increases
at 420 Lexington Avenue ($0.4 million); 17 Battery Place ($0.2
million), 711 Third Ave ($0.2 million) and 1412 Broadway ($0.3
million).
2. An increase in rent ($1.7 million) resulting from higher
replacement rents which were 30% greater than previously fully
escalated rents primarily at 420 Lexington Avenue ($1.2
million), 440 Ninth Avenue ($0.4 million) and 1372 Broadway
($0.2 million);
5
<PAGE>
3. The balance of the increase is due to higher escalation and
reimbursement income ($1.5 million), consisting of electric
reimbursement ($1.1 million), real estate tax escalations
($0.1 million) and increased passthrough of operating costs
($0.2 million).
4. Rent steps from current in-place tenants ($0.5 million).
Partially offsetting the total revenue increase were increased
operating expenses ($2.0 million) primarily due to higher utility
costs ($1.2 million), and higher payroll and cleaning costs ($0.6
million). The increased payroll and cleaning costs relate to
increased overtime payroll ($0.2 million) charged back to tenants,
lower prior year costs related to benefit refunds ($0.2 million),
and 5% higher labor costs ($0.2 million). Real estate taxes also
increased ($0.2 million) due to higher assessed property values.
o The Company's consolidated third quarter EBITDA margins before
ground rent improved to 65.4% compared to 57.7% for 1999. The
EBITDA margin after ground rent was 59.7% as compared to 51.6% in
the same period of the prior year. These margin improvements are
attributable to (i) GAAP NOI growth resulting from leasing 222,000
previously vacant square feet, which increased portfolio occupancy
to 98%, and (ii) an average improvement in replacement rents over
this 12-month period of 30% versus previously fully escalated
rents, (iii) income from unconsolidated joint ventures, and (iv)
income from structured finance.
QUARTERLY LEASING HIGHLIGHTS
o Vacancy at June 30, 2000 was 211,633 useable square feet. During the
quarter, 220,630 additional useable office square feet became
available at an average escalated cash rent of $26.75 per rentable
square foot. Space available to lease during the quarter totaled
432,263 useable square feet, or 4.7% of the total portfolio.
o During the third quarter, 43 leases were signed totaling 185,262
useable office square feet with new cash rents averaging $37.81
per rentable square foot. Replacement rents were 46% greater than
rents on previously occupied space, which had a fully escalated
cash rent averaging $25.93 per rentable square foot. Average
tenant concessions were one month of free rent and an allowance
of $3.86 per rentable square foot. Including early renewals and
excluding holdover tenants, the tenant renewal rate was 30%. 16
leases have expired comprising 12,849 useable square feet that
are in a holdover status. This results in 234,152 useable square
feet remaining vacant at September 30, 2000.
o The Company signed 2 leases totaling 7,564 useable square feet
that were for the early renewal of tenants. These early renewals
were for space that was not scheduled to become available until
after the third quarter of 2000. The Company was able to renew the
current tenants at an average cash rent of $27.91 representing an
increase of 37% over the previously escalated rents of $20.39.
6
<PAGE>
INVESTMENT ACTIVITY
o On September 21, 2000, the Company entered into an agreement to
purchase 1370 Broadway for $50.4 million. This 16-story, 255,000
square foot office building is located in the heart of Times Square,
directly across the street from 1372 Broadway, another SL Green
building. In-place rents are approximately $27.72, approximately 38%
below current market levels. The acquisition will be funded through
the Company's unsecured line of credit. This transaction is
scheduled to close in January 2001.
o On September 22, 2000, the Company, via a joint venture with Morgan
Stanley Real Estate Fund III ("MSREF"), entered into an agreement to
purchase 180 Madison Avenue for $41.25 million. The property
consists of 265,000 square feet over 23 floors. It is located at the
corner of 34th Street and Madison Avenue. SL Green will purchase a
49.9% interest in the property. The Company intends to use the
acquisition to effect a Section 1031 tax-free exchange in order to
partially defer the capital gain resulting from the sale of 90 Broad
Street. SL Green will assume managing and leasing responsibilities
for the property. This transaction is scheduled to close in December
2000.
o On September 28, 2000, the Company entered into an agreement to
purchase various ownership and mortgage interests in One Park Avenue
for $233.9 million. This 913,000 square foot, 20-story office
building is located between 32nd and 33rd Streets with full block
prominence on Park Avenue. The Company also acquired an option to
purchase the ground lease position. The acquisition will be financed
with a mortgage loan from Lehman Brothers Holdings, Inc. and the
Company's unsecured line of credit. This transaction is scheduled to
close in January 2001.
o On September 15, 2000 the Company announced a gain of $8.7 million
for cash received in connection with the early redemption of its $20
million preferred equity interest in 1370 Avenue of the Americas.
The Company recorded a $2.8 million adjustment to reduce this gain
as the Company has recorded an award for certain members of
management in connection with the realization of this investment
gain.
o The Company announced that it has entered into contracts for the
sale of two downtown properties:
o The first is located at 90 Broad Street. This property was jointly
owned with MSREF and was sold for $60 million. The property is
approximately 339,000 square feet with a contracted sales price of
$60 million, or $177 per square foot. The sale is scheduled to
close in November 2000.
o The second is a wholly-owned property located at 17 Battery Place
South. This property is approximately 400,000 square feet with a
contract price of $53 million, or $132 per square foot. The sale
is expected to occur in December 2000.
7
<PAGE>
o See Property Acquisition Schedule on page 29.
CAPITALIZATION AND LIQUIDITY
o On October 2, 2000, the Company repaid its $65 million mortgage
secured by 420 Lexington Avenue and obtained a new mortgage in the
amount of $125 million. The $125 million mortgage has a term of 10
years and bears interest at a fixed rate of 8.54 %.
o The Company's dividend payout ratio was 51.9% of FFO and 76.5% of
FAD before first cycle leasing costs.
o Dividends during the quarter were declared on September 14, 2000
for distribution of $0.3625 per common share and $0.50 per share
of Preferred Income Equity Redeemable Stock payable on October 15,
2000 for shareholders of record as of September 29, 2000.
OTHER
o Starting January 1, the Company changed its definition of "Same
Store" results to include all properties as of 1/1/00 which were
owned 12 months or more. Subsequently, the same store group has
been adjusted to remove properties sold during the first and
second quarters and will include the following properties:
2000 SAME STORE
<TABLE>
<S> <C> <C>
673 First Avenue 1140 Avenue of the Americas 420 Lexington Avenue
470 Park Avenue South 50 West 23rd Street 1466 Broadway
70 West 36th Street 17 Battery Place 440 Ninth Avenue
1414 Avenue of the Americas 633 Third Avenue 711 Third Avenue
1372 Broadway 110 East 42nd Street 1412 Broadway
</TABLE>
8
<PAGE>
COMPARATIVE BALANCE SHEET
UNAUDITED
($000's omitted)
<TABLE>
<CAPTION>
Standard GAAP Format 9/30/2000 9/30/1999 +/- % CHANGE
--------- --------- --- --------
<S> <C> <C> <C> <C>
ASSETS
Commercial real estate properties, at cost:
Land & land interests 125,572 132,883 (7,311) -6%
Buildings & improvements fee interest 609,089 623,147 (14,058) -2%
Buildings & improvements leasehold 137,441 126,974 10,467 8%
Buildings & improvements under capital lease 12,208 12,208 -- 0%
--------- --------- -------
884,310 895,212 (10,902) -1%
Less accumulated depreciation (72,179) (53,335) (18,844) 35%
--------- --------- -------
812,131 841,877 (29,746) -4%
Other Real Estate Investments:
Investment in unconsolidated joint ventures 59,632 22,534 37,098 165%
Mortgage loans and preferred equity investments 49,903 40,901 9,002 22%
Properties held for sale 49,890 -- 49,890 --
Cash and cash equivalents 14,064 8,409 5,655 67%
Restricted cash:
Tenant security 18,979 16,620 2,359 14%
Escrows & other 15,604 11,311 4,293 38%
Tenant and other receivables, net of $1,930 reserve at 9/30/00 9,132 8,944 188 2%
Related party receivables 964 192 772 402%
Deferred rents receivable, net of reserve for
tenant credit loss of $5,002 at 9/30/00 43,452 33,821 9,631 28%
Investment in and advances to affiliates 7,943 4,908 3,035 62%
Deferred costs, net 37,924 26,978 10,946 41%
Other assets 34,100 13,745 20,355 148%
--------- --------- -------
TOTAL ASSETS 1,153,718 1,030,240 123,478 12%
========= ========= =======
<CAPTION>
6/30/2000 +/- % CHANGE
--------- --- --------
<S> <C> <C> <C>
ASSETS
Commercial real estate properties, at cost:
Land & land interests 131,991 (6,419) -5%
Buildings & improvements fee interest 646,150 (37,061) -6%
Buildings & improvements leasehold 135,886 1,555 1%
Buildings & improvements under capital lease 12,208 -- 0%
---------- -------
926,235 (41,925) -5%
Less accumulated depreciation (68,653) (3,526) 5%
---------- -------
857,582 (45,451) -5%
Other Real Estate Investments:
Investment in unconsolidated joint ventures 63,850 (4,218) -7%
Mortgage loans and preferred equity investments 76,962 (27,059) -35%
Properties held for sale 49,890 -- 49,890
Cash and cash equivalents 15,317 (1,253) -8%
Restricted cash:
Tenant security 18,081 898 5%
Escrows & other 13,045 2,559 20%
Tenant and other receivables, net of $1,930 reserve at 9/30/00 6,851 2,281 33%
Related party receivables 781 183 23%
Deferred rents receivable, net of reserve for
tenant credit loss of $5,002 at 9/30/00 42,867 585 1%
Investment in and advances to affiliates 7,527 416 6%
Deferred costs, net 37,922 2 0%
Other assets 20,057 14,043 70%
---------- ------- -------
TOTAL ASSETS 1,160,842 (7,124) -1%
========== ======= =======
<CAPTION>
3/31/1900 +/- % CHANGE
--------- --- --------
ASSETS
Commercial real estate properties, at cost:
<S> <C> <C> <C>
Land & land interests 132,081 (6,509) -5%
Buildings & improvements fee interest 637,168 (28,079) -4%
Buildings & improvements leasehold 134,304 3,137 2%
Buildings & improvements under capital lease 12,208 -- 0%
---------- -------
915,761 (31,451) -3%
Less accumulated depreciation (62,965) (9,214) 15%
---------- -------
852,796 (40,665) -5%
Other Real Estate Investments:
Investment in unconsolidated joint ventures 62,021 (2,389) -4%
Mortgage loans and preferred equity investments 65,680 (15,777) -24%
Cash and cash equivalents 10,147 3,917 39%
Restricted cash:
Tenant security 17,555 1,424 8%
Escrows & other 21,158 (5,554) -26%
Tenant and other receivables, net of $1,930 reserve at 9/30/00 5,079 4,053 80%
Related party receivables 446 518 116%
Deferred rents receivable, net of reserve for
tenant credit loss of $5,002 at 9/30/00 40,252 3,200 8%
Investment in and advances to affiliates 5,695 2,248 39%
Deferred costs, net 31,542 6,382 20%
Other assets 11,563 22,537 195%
---------- -------
TOTAL ASSETS 1,123,934 29,784 3%
========== =======
</TABLE>
Page 9
<PAGE>
COMPARATIVE BALANCE SHEET
UNAUDITED
($000's omitted)
<TABLE>
<CAPTION>
Standard GAAP Format 9/30/2000 9/30/1999 +/- % CHANGE
--------- --------- --- --------
<S> <C> <C> <C> <C>
LIABILITIES AND STOCKHOLDERS' EQUITY
Mortgage notes payable 345,351 337,190 8,161 2%
Revolving credit facilities 126,752 61,000 65,752 108%
Accrued interest payable 3,069 2,341 728 31%
Accounts payable and accrued expenses 28,045 11,399 16,646 146%
Deferred revenue 1,444 695 749 108%
Capitalized lease obligations 15,242 14,946 296 2%
Deferred land lease payable 12,805 11,170 1,635 15%
Dividend and distributions payable 12,065 11,672 393 3%
Security deposits 18,951 18,481 470 3%
--------- --------- -------
TOTAL LIABILITIES 563,724 468,894 94,830 20%
Minority interest (2,308 units outstanding) 41,753 45,558 (3,805) -8%
8% Preferred Income Equity Redeemable Shares
$0.01 par value, $25.00 mandatory liquidation
preference, 4,600 outstanding 110,667 110,248 419 0%
STOCKHOLDERS' EQUITY
Common stock, $.01 par value 100,000
shares authorized, 24,516 issued and
outstanding at 9/30/00 245 242 3 1%
Additional paid - in capital 428,635 422,377 6,258 1%
Deferred compensation plans (5,939) (7,410) 1,471 -20%
Retained earnings / (distributions in excess of earnings) 14,633 (9,669) 24,302 -251%
--------- --------- -------
TOTAL STOCKHOLDERS' EQUITY 437,574 405,540 32,034 8%
--------- --------- -------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY 1,153,718 1,030,240 123,478 12%
========= ========= =======
<CAPTION>
6/30/2000 +/- % CHANGE
--------- --- --------
<S> <C> <C> <C>
LIABILITIES AND STOCKHOLDERS' EQUITY
Mortgage notes payable 346,294 (943) 0%
Revolving credit facilities 145,752 (19,000) -13%
Accrued interest payable 1,823 1,246 68%
Accounts payable and accrued expenses 26,851 1,194 4%
Deferred revenue 1,838 (394) -21%
Capitalized lease obligations 15,165 77 1%
Deferred land lease payable 12,493 312 2%
Dividend and distributions payable 12,010 55 0%
Security deposits 18,104 847 5%
--------- ------
TOTAL LIABILITIES 580,330 (16,606) -3%
Minority interest (2,308 units outstanding) 42,544 (791) -2%
8% Preferred Income Equity Redeemable Shares
$0.01 par value, $25.00 mandatory liquidation
preference, 4,600 outstanding 110,561 106 0%
STOCKHOLDERS' EQUITY
Common stock, $.01 par value 100,000
shares authorized, 24,516 issued and
outstanding at 9/30/00 244 1 1%
Additional paid - in capital 425,837 2,798 1%
Deferred compensation plans (6,239) 300 -5%
Retained earnings / (distributions in excess of earnings) 7,565 7,068 93%
--------- ------
TOTAL STOCKHOLDERS' EQUITY 427,407 10,167 2%
--------- ------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY 1,160,842 (7,124) -1%
========= ======
<CAPTION>
3/31/1900 +/- % CHANGE
--------- --- --------
<S> <C> <C> <C>
LIABILITIES AND STOCKHOLDERS' EQUITY
Mortgage notes payable 332,262 13,089 4%
Revolving credit facilities 141,752 (15,000) -11%
Accrued interest payable 3,158 (89) -3%
Accounts payable and accrued expenses 15,753 12,292 78%
Deferred revenue 1,480 (36) -2%
Capitalized lease obligations 15,090 152 1%
Deferred land lease payable 12,052 753 6%
Dividend and distributions payable 11,962 103 1%
Security deposits 17,510 1,441 8%
--------- ------
TOTAL LIABILITIES 551,019 12,705 2%
Minority interest (2,308 units outstanding) 42,430 (677) -2%
8% Preferred Income Equity Redeemable Shares
$0.01 par value, $25.00 mandatory liquidation
preference, 4,600 outstanding 110,454 213 0%
STOCKHOLDERS' EQUITY
Common stock, $.01 par value 100,000
shares authorized, 24,516 issued and
outstanding at 9/30/00 242 3 1%
Additional paid - in capital 423,032 5,603 1%
Deferred compensation plans (6,661) 722 -11%
Retained earnings / (distributions in excess of earnings) 3,418 11,215 328%
--------- ------
TOTAL STOCKHOLDERS' EQUITY 420,031 17,543 4%
--------- ------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY 1,123,934 29,784 3%
========= ======
</TABLE>
Page 10
<PAGE>
COMPARATIVE STATEMENTS OF OPERATIONS
UNAUDITED
<TABLE>
<CAPTION>
($000's omitted) Three Months Ended September
2000 1999 +/- %
---- ---- --- -
<S> <C> <C> <C> <C>
REVENUES
Rental revenue, net 44,482 42,158 2,324 6%
Free rent 1,978 2,276 (298) -13%
Amortization of free rent (851) (625) (226) 36%
------ ------ -----
Net free rent 1,127 1,651 (524) -32%
Straight-line rent 2,237 2,004 233 12%
Allowance for S/L tenant credit loss (199) (733) 534 -73%
Escalation and reimbursement revenues 7,593 6,856 737 11%
Signage rent 496 559 (63) -11%
Investment income 4,968 1,469 3,499 238%
Other income 170 688 (518) -75%
------ ------ -----
TOTAL REVENUES, NET 60,874 54,652 6,222 11%
Equity in income from service corporation and subsidiaries 71 223 (152) -68%
Equity in income from unconsolidated joint ventures 586 151 435 289%
EXPENSES
Operating expenses 15,260 14,293 967 7%
Ground rent 3,164 3,183 (19) -1%
Real estate taxes 7,299 7,481 (182) -2%
Marketing, general and administrative 2,540 2,979 (439) -15%
------ ------ -----
TOTAL OPERATING EXPENSES 28,263 27,936 327 1%
EBITDA 33,268 27,090 6,178 23%
Interest 10,698 7,772 2,926 38%
Depreciation and amortization 8,300 7,677 623 8%
------ ------ -----
INCOME BEFORE MINORITY INTEREST 14,270 11,641 2,629 23%
Extraordinary loss- early debt extinguishment -- -- -- (430)
Gain on sale of properties -- -- -- 4,797
Gain on redemption of preferred equity inv 5,624 -- 5,624 --
Minority interest - BMW -- (354) 354 -100%
Minority interest - OP (1,496) (815) (681) 84%
------ ------ -----
NET INCOME 18,398 10,472 7,926 76%
Dividends on preferred shares (2,300) (2,300) -- 0%
Preferred stock accretion (107) (99) (8) 7%
------ ------ -----
INCOME AVAILABLE FOR COMMON SHARES 15,991 8,073 7,918 98%
====== ====== =====
MG&A to Real Estate Revenue, net 4.56% 5.67%
MG&A to Total Revenue, net 4.17% 5.45%
Operating Expense to Real Estate Revenue, net 27.38% 27.23%
EBITDA to Real Estate Revenue, net 59.69% 51.60%
EBITDA before Ground Rent to Real Estate Revenue, net 65.36% 57.67%
<CAPTION>
Three Months Nine Months
Ended June 30 Ended Sept 30
2000 2000
---- ----
<S> <C> <C>
REVENUES
Rental revenue, net 42,740 130,892
Free rent 2,394 6,362
Amortization of free rent (840) (2,487)
------ -------
Net free rent 1,554 3,875
Straight-line rent 2,356 6,903
Allowance for S/L tenant credit loss (240) (672)
Escalation and reimbursement revenues 5,367 18,941
Signage rent 597 1,593
Investment income 3,923 9,903
Other income 197 693
------ -------
TOTAL REVENUES, NET 56,494 172,128
Equity in income from service corporation and subsidiaries 369 609
Equity in income from unconsolidated joint ventures 782 2,209
EXPENSES
Operating expenses 13,443 41,893
Ground rent 3,159 9,505
Real estate taxes 7,053 21,688
Marketing, general and administrative 3,190 8,517
------ -------
TOTAL OPERATING EXPENSES 26,845 81,603
EBITDA 30,800 93,343
Interest 10,053 30,243
Depreciation and amortization 8,403 24,519
------- --------
INCOME BEFORE MINORITY INTEREST 12,344 38,581
Extraordinary loss- early debt extinguishment (430) (430)
Gain on sale of properties 4,797 19,022
Gain on redemption of preferred equity inv -- 5,624
Minority interest - BMW -- --
Minority interest - OP (1,316) (4,964)
------ -------
NET INCOME 15,395 57,833
Dividends on preferred shares (2,300) (6,900)
Preferred stock accretion (107) (320)
------ -------
INCOME AVAILABLE FOR COMMON SHARES 12,988 50,613
====== =======
MG&A to Real Estate Revenue, net 6.09% 5.27%
MG&A to Total Revenue, net 5.65% 4.95%
Operating Expense to Real Estate Revenue, net 25.67% 25.93%
EBITDA to Real Estate Revenue, net 58.81% 57.79%
EBITDA before Ground Rent to Real Estate Revenue, net 64.84% 63.67%
</TABLE>
Page 11
<PAGE>
<TABLE>
<CAPTION>
($000's omitted - except per share data) Three Months Ended September 30 Ended June 30 Ended Sept 30
2000 1999 2000 2000
---- ---- ---- ----
<S> <C> <C> <C> <C>
PER SHARE DATA:
Income available for common shares 15,991 8,073 12,988 50,613
Net income per share (basic) 0.65 0.33 0.53 2.08
Dividend per share 0.3625 0.35 0.3625 1.088
Estimated payout of taxable income 78% 160% 126% 103%
Basic weighted average common shares 24,458 24,200 24,309 24,329
Diluted weighted average common shares and
common share equivalents outstanding 27,300 26,706 27,045 27,063
</TABLE>
PAYOUT OF TAXABLE INCOME ANALYSIS:
Estimated taxable income is derived from net income less straightline
rent, free rent net of amortization of free rent, plus tax gain on sale of
properties, credit loss, straightline ground rent and the difference in
depreciable basis between tax and GAAP. The Company has deferred the
taxable gain on the sale 29 West 35th Street through a 1031 exchange.
Page 12
<PAGE>
JOINT VENTURE STATEMENTS
Balance Sheet
UNAUDITED
---------
<TABLE>
<CAPTION>
($000's omitted) September 30, 2000
--------------------------------------
Total Property SLG Property Interest
-------------- ---------------------
<S> <C> <C>
Land & land interests 69,468 32,774
Buildings & improvements 288,625 135,781
------- -------
358,093 168,555
Less accumulated depreciation (5,948) (2,786)
------- -------
Net Real Estate 352,145 165,769
Cash and cash equivalents 5,857 2,969
Restricted cash 9,937 4,632
Tenant receivables, net of $710 reserve 1,611 742
Deferred rents receivable, net of reserve for
tenant credit loss of $635 at 9/30/00 3,680 1,669
Deferred costs, net 4,874 2,168
Other assets 2,977 2,028
------- -------
Total Assets 381,081 179,977
======= =======
Mortgage Loan Payable 238,650 111,040 references page 20
Accrued interest payable 1,559 745
Accounts payable and accrued expenses 6,382 3,013
Security deposits 5,915 2,726
Contributed Capital 128,575 62,453 references page 9 (1)
------- -------
Total Liabilities and Equity 381,081 179,977
======= =======
<CAPTION>
June 30, 2000
--------------------------------------
Total Property SLG Property Interest
-------------- ---------------------
Land & land interests 69,468 32,774
Buildings & improvements 287,017 135,186
------- -------
356,485 167,960
Less accumulated depreciation (4,199) (1,973)
------- -------
Net Real Estate 352,286 165,988
Cash and cash equivalents 7,071 3,287
Restricted cash 8,043 3,706
Tenant receivables, net of $710 reserve 1,342 638
Deferred rents receivable, net of reserve for
tenant credit loss of $635 at 9/30/00 2,569 1,192
Deferred costs, net 6,344 2,898
Other assets 2,652 2,442
------- -------
Total Assets 380,307 180,151
======= =======
Mortgage Loan Payable 230,650 107,048
Accrued interest payable 1,557 744
Accounts payable and accrued expenses 7,212 3,370
Security deposits 5,087 2,317
Contributed Capital 135,801 66,672
------- -------
Total Liabilities and Equity 380,307 180,151
======= =======
</TABLE>
As of September 30, 2000 the Company has four joint venture interests
representing a 35% economic interest in 90 Broad Street, acquired in July 1999,
a 50% interest in 1250 Broadway, acquired in August 1999, a 50% interest in 100
Park Avenue, acquired in February 2000 and a 35% interest in 321 West 44th
Street, contributed May 2000. These interests are accounted for on the equity
method of accounting and, therefore, are not consolidated into the company's
financial statements.
(1) The primary difference with Investment in unconsolidated joint ventures
represents the unrecognized deferred gain on 321 West 44th Street.
Page 13
<PAGE>
JOINT VENTURE STATEMENTS
Statement of Income & Expense for Unconsolidated Joint Ventures
UNAUDITED
---------
<TABLE>
<CAPTION>
($000's omitted) Three Months Ended September 30, 2000
----------------------------------------------------------
Total Property SLG Property Interest SLG Subsidiary
-------------- --------------------- --------------
<S> <C> <C>
Rental Revenue, net 13,141 6,202
Free rent 670 270
Amortization of free rent (82) (36)
------ -----
Net free rent 588 234
Straight-line rent 712 324
Allowance for S/L tenant credit loss (189) (82)
Escalation and reimbursement revenues 2,171 978
Investment income 190 93
Other income 15 6
------ -----
TOTAL REVENUES, NET 16,628 7,755
EXPENSES
Operating expenses 5,595 2,530
Real estate taxes 2,695 1,297
------ -----
TOTAL OPERATING EXPENSES 8,290 3,827
GAAP NOI 8,527 4,010
CASH NOI 7,227 3,452
Interest 5,166 2,400
Depreciation and amortization 2,047 942
Extraordinary Loss -- --
------ -----
NET INCOME 1,125 586 references page 11
Plus: Real Estate Depreciation 1,813 842
Plus: Extraordinary Loss -- --
Plus: Management & Leasing Fees -- -- 65
------ ----- -----
FUNDS FROM OPERATIONS 2,938 1,428
FAD ADJUSTMENTS:
Plus: Non Real Estate Depreciation 233 100
Plus: 2% Allowance for S/L Tenant Credit Loss 189 82
Less: Free and S/L Rent (1,300) (558)
Less: Second Cycle Tenant Improvement, -- --
Leasing Commissions & Recurring Capex (595) (255)
------ -----
(1,473) (631) reference page 16
====== =====
Operating Expense to Real Estate Revenue, net 33.68% 32.69%
GAAP NOI to Real Estate Revenue, net 51.33% 51.82%
Cash NOI to Real Estate Revenue, net 43.50% 44.62%
<CAPTION>
Three Months Ended June 30, 2000
----------------------------------------------------------
Total Property SLG Property Interest SLG Subsidiary
-------------- --------------------- --------------
Rental Revenue, net 12,542 5,943
Free rent 657 285
Amortization of free rent (65) (29)
------ -----
Net free rent 592 256
Straight-line rent 690 324
Allowance for S/L tenant credit loss (192) (87)
Escalation and reimbursement revenues 1,442 639
Investment income 91 44
Other income 2 2
------ -----
TOTAL REVENUES, NET 15,167 7,121
EXPENSES
Operating expenses 3,816 1,760
Real estate taxes 2,653 1,286
------ -----
TOTAL OPERATING EXPENSES 6,469 3,046
GAAP NOI 8,890 4,161
CASH NOI 7,608 3,582
Interest 4,874 2,287
Depreciation and amortization 2,149 1,006
Extraordinary Loss -- --
------ -----
NET INCOME 1,675 782
Plus: Real Estate Depreciation 1,943 917
Plus: Extraordinary Loss -- --
Plus: Management & Leasing Fees -- -- 44
------ ----- -----
FUNDS FROM OPERATIONS 3,618 1,699
FAD ADJUSTMENTS:
Plus: Non Real Estate Depreciation 206 88
Plus: 2% Allowance for S/L Tenant Credit Loss 192 87
Less: Free and S/L Rent (1,282) (580)
Less: Second Cycle Tenant Improvement,
Leasing Commissions & Recurring Capex (255) (89)
------ -----
(1,139) (494)
====== =====
Operating Expense to Real Estate Revenue, net 25.00% 24.57%
GAAP NOI to Real Estate Revenue, net 58.24% 58.11%
Cash NOI to Real Estate Revenue, net 49.84% 50.01%
</TABLE>
As of September 30, 2000 the Company has four joint venture interests
representing a 35% economic interest in 90 Broad Street, acquired in July 1999,
a 50% interest in 1250 Broadway, acquired in August 1999, a 50% interest in 100
Park Avenue, acquired in February 2000 and a 35% interest in 321 West 44th
Street, contributed May 2000. These interests are accounted for on the equity
method of accounting and, therefore, are not consolidated into the company's
financial statements.
Page 14
<PAGE>
CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY
<TABLE>
<CAPTION>
Retained Earnings /
($000's omitted) Additional (Distributions) In
Common Stock Paid-in Capital Excess of Earnings
------------ --------------- ------------------
<S> <C> <C> <C>
Balance at December 31, 1997 123 178,669 (2,584)
Net Income 29,451
Preferred dividend and accretion requirement (5,970)
Issuance of common stock net of offering cost
($1,615) and revaluation increase in minority
interest ($6,934) 115 235,006
Deferred compensation plan 2 3,264
Cash distributions declared ($1.40 per
common share) (29,456)
Officers' loans, net of amortization
--------------------------------------------------------
Balance at December 31, 1998 240 416,939 (8,559)
Net Income 42,856
Preferred dividend and accretion requirement (9,598)
Deferred compensation plan 2 5,019
Cash distributions declared ($1.41 per
common share) (34,121)
Amortization of officers' loan and deferred compensation
--------------------------------------------------------
Balance at December 31, 1999 242 421,958 (9,422)
Net Income 57,833
Preferred dividend and accretion requirement (7,220)
Deferred compensation plan 746
Exercise of employee stock options 2 3,803
Cash distributions declared ($1.088 per
common share) (26,558)
Redemption of operating partnership units 1 2,128
Amortization of officers' loan and deferred compensation
--------------------------------------------------------
Balance at September 30, 2000 (unaudited) 245 428,635 14,633
========================================================
<CAPTION>
Deferred
Compensation
Plan / Officers'
Loan Total
---- -----
<S> <C> <C>
Balance at December 31, 1997 176,208
Net Income 29,451
Preferred dividend and accretion requirement (5,970)
Issuance of common stock net of offering cost
($1,615) and revaluation increase in minority
interest ($6,934) 235,121
Deferred compensation plan (3,266) --
Cash distributions declared ($1.40 per
common share) (29,456)
Officers' loans, net of amortization (528) (528)
--------------------------------
Balance at December 31, 1998 (3,794) 404,826
Net Income 42,856
Preferred dividend and accretion requirement (9,598)
Deferred compensation plan (4,771) 250
Cash distributions declared ($1.41 per
common share) (34,121)
Amortization of officers' loan and deferred compensation 1,891 1,891
--------------------------------
Balance at December 31, 1999 (6,674) 406,104
Net Income 57,833
Preferred dividend and accretion requirement (7,220)
Deferred compensation plan (487) 259
Exercise of employee stock options 3,805
Cash distributions declared ($1.088 per
common share) (26,558)
Redemption of operating partnership units 2,129
Amortization of officers' loan and deferred compensation 1,222 1,222
--------------------------------
Balance at September 30, 2000 (unaudited) (5,939) 437,574
================================
</TABLE>
RECONCILIATION OF SHARES AND UNITS OUTSTANDING, AND DILUTION COMPUTATION
UNAUDITED
<TABLE>
<CAPTION>
Common Stock Op Units Basic Shares
------------ -------- ------------
<S> <C> <C> <C>
Balance at December 31, 1997 12,292,311 2,383,284 14,675,595
Public Offering 11,500,000 11,500,000
Deferred Compensation Programs 159,515 159,515
Acquisiton of 711 Third Ave. fee interest 44,772 44,772
---------- --------- ----------
Balance at December 31, 1998 23,951,826 2,428,056 26,379,882
Deferred Compensation Programs 232,391 232,391
---------- --------- ----------
Balance at December 31, 1999 24,184,217 2,428,056 26,612,273
Option/OP Units Converted 299,776 (120,541) 179,235
Compensation Program 32,201 32,201
Unexercised Option Share Equivalents
Preferred Stock "If Converted" Method
to common stock
---------- --------- ----------
Balance at September 30, 2000 24,516,194 2,307,515 26,823,709
========== ========= ==========
<CAPTION>
Dilution Factor Diluted Shares
--------------- --------------
<S> <C> <C>
Balance at December 31, 1997
Public Offering
Deferred Compensation Programs
Acquisiton of 711 Third Ave. fee interest
Balance at December 31, 1998 26,379,882
Deferred Compensation Programs 232,391
----------
Balance at December 31, 1999 26,612,273
Option/OP Units Converted (98,268) 80,967
Compensation Program (11,383) 20,818
Unexercised Option Share Equivalents 349,214 349,214
Preferred Stock "If Converted" Method
to common stock 4,699,000 4,699,000
------------- ----------
Balance at September 30, 2000 4,938,563 31,762,272
============= ==========
</TABLE>
Page 15
<PAGE>
COMPARATIVE COMPUTATION OF FFO AND FAD
Unaudited
<TABLE>
<CAPTION>
($000's omitted - except per share data) Three Months Ended September 30
2000 1999 % Change
---- ---- --------
<S> <C> <C> <C>
FUNDS FROM OPERATIONS:
Net Income before Minority Interests 14,270 11,641 23%
Add: Depreciation and Amortization 8,300 7,677 8%
FFO adjustment for Joint Ventures 842 120 602%
Less: Dividends on Preferred Shares 2,300 2,300 0%
Minority Interest of BMW - 354 -100%
Non Real Estate Depreciation/Amortization of
Finance Costs 1,042 878 19%
------ ------
FUNDS FROM OPERATIONS - BASIC 20,070 15,906 26%
Add: Dividends on Preferred Shares 2,300 2,300
------ ------
FUNDS FROM OPERATIONS - DILUTED 22,370 18,206
Funds From Operations per Diluted Weighted Average Unit,
Common Share and Common Share Equivalent Outstanding 0.70 0.58 21%
FUNDS AVAILABLE FOR DISTRIBUTION:
FFO 20,070 15,906 26%
Add: Non Real Estate Depreciation (1) 1,042 771 35%
2% Allowance for S/L Tenant Credit Loss (1) 199 708 -72%
Straight-line Ground Rent 312 442 -29%
Non-cash Deferred Compensation 422 368 15%
FAD adjustment for Joint Ventures (631) 8
Less: Straight-line Rental Income (1) 2,237 1,907 17%
Free Rent - Occupied (Net of Amortization, incl. First Cycle) (1) 1,127 1,518 -26%
Amortization of Mortgage Investment Discount 1,119 -
Second Cycle Tenant Improvement & Leasing
Commission on Existing Space (1) 3,118 1,933 61%
Recurring Building Improvements (1) 871 1,032 -16%
------ ------
FUNDS AVAILABLE FOR DISTRIBUTION BEFORE REDEVELOPMENT & FIRST
CYCLE LEASING COSTS 12,942 11,813 10%
Funds Available for Distribution per Diluted Weighted Average
Unit and Common Share 0.47 0.44 7%
Dividend per Common Share 0.3625 0.35 4%
FIRST CYCLE LEASING COSTS
Tenant Improvement & Leasing Commissions (1) 680 5,331 -87%
FUNDS AVAILABLE FOR DISTRIBUTION AFTER FIRST
CYCLE LEASING COSTS 12,262 6,482 89%
Funds Available for Distribution per Diluted Weighted Average
Unit and Common Share 0.45 0.24 85%
Payout Ratio of Funds From Operations 51.85% 60.37% -14%
Payout Ratio of Funds Available for Distribution before First Cycle 76.47% 79.13% -3%
REDEVELOPMENT COSTS (1) 3,778 8,963 -58%
<CAPTION>
Nine Months
($000's omitted - except per share data) Three Months Ended June 30 Ended Sept 30
2000 % Change 2000
---- -------- ----
<S> <C> <C> <C>
FUNDS FROM OPERATIONS:
Net Income before Minority Interests 12,344 16% 38,581
Add: Depreciation and Amortization 8,403 -1% 24,519
FFO adjustment for Joint Ventures 917 -8% 2,468
Less: Dividends on Preferred Shares 2,300 0% 6,900
Minority Interest of BMW - -
Non Real Estate Depreciation/Amortization of
Finance Costs 1,040 0% 3,105
------ ------
FUNDS FROM OPERATIONS - BASIC 18,324 10% 55,563
Add: Dividends on Preferred Shares 2,300 6,900
------ ------
FUNDS FROM OPERATIONS - DILUTED 20,624 62,463
Funds From Operations per Diluted Weighted Average Unit,
Common Share and Common Share Equivalent Outstanding 0.65 8% 1.97
FUNDS AVAILABLE FOR DISTRIBUTION:
FFO 18,324 10% 55,563
Add: Non Real Estate Depreciation (1) 1,040 0% 3,105
2% Allowance for S/L Tenant Credit Loss (1) 240 -17% 672
Straight-line Ground Rent 441 -29% 1,194
Non-cash Deferred Compensation 386 9% 1,113
FAD adjustment for Joint Ventures (494) 28% (1,989)
Less: Straight-line Rental Income (1) 2,356 -5% 6,903
Free Rent - Occupied (Net of Amortization, incl. First Cycle) (1) 1,554 -27% 3,875
Amortization of Mortgage Investment Discount 1,107 1% 2,226
Second Cycle Tenant Improvement & Leasing
Commission on Existing Space (1) 3,289 -5% 9,219
Recurring Building Improvements (1) 546 60% 1,497
------ ------
FUNDS AVAILABLE FOR DISTRIBUTION BEFORE REDEVELOPMENT & FIRST
CYCLE LEASING COSTS 11,085 17% 35,938
Funds Available for Distribution per Diluted Weighted Average
Unit and Common Share 0.41 16% 1.33
Dividend per Common Share 0.3625 0% 1.088
FIRST CYCLE LEASING COSTS
Tenant Improvement & Leasing Commissions (1) 4,206 -84% 13,586
FUNDS AVAILABLE FOR DISTRIBUTION AFTER FIRST
CYCLE LEASING COSTS 6,879 78% 22,352
Funds Available for Distribution per Diluted Weighted Average
Unit and Common Share 0.25 77% 0.83
Payout Ratio of Funds From Operations 55.80% -7% 55.30%
Payout Ratio of Funds Available for Distribution before First Cycle 88.44% -14% 81.89%
REDEVELOPMENT COSTS (1) 3,254 16% 10,266
</TABLE>
(1) Adjusted for Minority Interest in Properties less than 100% owned
Page 16
<PAGE>
SELECTED FINANCIAL DATA
CAPITALIZATION ANALYSIS
HISTORICAL
UNAUDITED
<TABLE>
<CAPTION>
($000's omitted)
SEP-00 SEP-99 % CHANGE JUN-00
------ ------ -------- ------
<S> <C> <C> <C> <C>
MARKET CAPITALIZATION
Components of Market Capitalization:
COMMON EQUITY:
Common Shares Outstanding 24,516 24,204 1% 24,373
OP Units Outstanding 2,308 2,428 -5% 2,389
---------- ---------- ----------
TOTAL COMMON EQUITY (SHARES AND UNITS) 26,824 26,632 1% 26,762
Share Price at (End of Period) 28.06 20.50 37% 26.73
---------- ---------- ----------
Equity Market Value 752,740 545,950 38% 715,476
PREFERRED EQUITY AT LIQUIDATION VALUE: 115,000 115,000 0% 115,000
REAL ESTATE DEBT
Property Level Mortgage Debt 345,351 337,190 2% 346,294
Company's portion of Joint Venture Mortgages 111,040 39,540 181% 107,048
Minority Interest in Company's Mortgage - BMW -- (15,379) -100%
Outstanding Balance on - Secured Credit Line 27,752 -- 42,752
Outstanding Balance on - Unsecured Credit Line 99,000 61,000 62% 103,000
---------- ---------- ----------
Total Combined Debt 583,143 422,351 38% 599,094
Total Market Cap (Debt & Equity) 1,450,883 1,083,301 34% 1,429,570
========== ========== ==========
LINES OF CREDIT AVAILABILITY
Senior Unsecured Line of Credit
Maximum Line Available 250,000 140,000 250,000
Letters of Credit issued -- 1,000 --
Outstanding Balance 99,000 61,000 103,000
---------- ---------- ----------
Net Line Availability 151,000 78,000 147,000
---------- ---------- ----------
Secured Line of Credit
Maximum Line Available 50,000 50,000
Outstanding Balance 27,752 42,752
---------- ----------
Prudential Line Availability 22,248 N/A 7,248
---------- ----------
Total Availability under Lines of Credit 173,248 154,248
---------- ----------
RATIO ANALYSIS- CONSOLIDATED BASIS
Debt to Market Cap Ratio 35.24% 37.60% 37.21%
Debt to Gross Real Estate Book Ratio (1) 48.23% 45.09% 49.16%
Secured Real Estate Debt to Secured Assets Gross Book (1) 55.77% 58.62% 56.34%
Unsecured Debt to Unencumbered
Assets-Gross Book Value (1) 32.86% 19.96% 34.40%
Secured Non Real Estate Debt to Secured Assets Book (1) 46.33% N/A 49.16%
RATIO ANALYSIS- JOINT VENTURES ALLOCATED
Combined Debt to Market Cap Ratio 40.19% 38.99% 41.91%
Debt to Gross Real Estate Book Ratio (1) 50.96% 46.06% 51.42%
Secured Debt to Secured Assets Gross Book (1) 57.99% 59.32% 57.93%
Unsecured Debt to Unencumbered
Assets-Gross Book Value (1) 32.86% 19.96% 34.40%
Secured Line of Credit to Structured Finance Assets (1) 46.33% N/A 49.16%
<CAPTION>
($000's omitted)
% CHANGE MAR-00 % CHANGE
-------- ------ --------
<S> <C> <C> <C>
MARKET CAPITALIZATION
Components of Market Capitalization:
COMMON EQUITY:
Common Shares Outstanding 1% 24,239 1%
OP Units Outstanding -3% 2,408 -4%
----------
TOTAL COMMON EQUITY (SHARES AND UNITS) 0% 26,647 1%
Share Price at (End of Period) 5% 23.75 18%
----------
Equity Market Value 5% 632,862 19%
PREFERRED EQUITY AT LIQUIDATION VALUE: 0% 115,000 0%
REAL ESTATE DEBT
Property Level Mortgage Debt 0% 332,262 4%
Company's portion of Joint Venture Mortgages 4% 99,348 12%
Minority Interest in Company's Mortgage - BMW -- --
Outstanding Balance on - Secured Credit Line -35% 37,752 -26%
Outstanding Balance on - Unsecured Credit Line -4% 104,000 -5%
----------
Total Combined Debt -3% 573,362 2%
Total Market Cap (Debt & Equity) 1% 1,321,224 10%
===========
LINES OF CREDIT AVAILABILITY
Senior Unsecured Line of Credit
Maximum Line Available 140,000
Letters of Credit issued --
Outstanding Balance 104,000
----------
Net Line Availability 36,000
----------
Secured Line of Credit
Maximum Line Available 50,000
Outstanding Balance 37,752
----------
Prudential Line Availability 12,248
----------
Total Availability under Lines of Credit 48,248
----------
RATIO ANALYSIS- CONSOLIDATED BASIS
Debt to Market Cap Ratio 38.79%
Debt to Gross Real Estate Book Ratio (1) 48.28%
Secured Real Estate Debt to Secured Assets Gross Book (1) 56.44%
Unsecured Debt to Unencumbered
Assets-Gross Book Value (1) 33.04%
Secured Non Real Estate Debt to Secured Assets Book (1) 49.88%
RATIO ANALYSIS- JOINT VENTURES ALLOCATED
Combined Debt to Market Cap Ratio 43.40%
Debt to Gross Real Estate Book Ratio (1) 50.49%
Secured Debt to Secured Assets Gross Book (1) 57.86%
Unsecured Debt to Unencumbered
Assets-Gross Book Value (1) 33.04%
Secured Line of Credit to Structured Finance Assets (1) 49.88%
</TABLE>
(1) Excludes property under capital lease
Page 17
<PAGE>
SELECTED FINANCIAL DATA
PROPERTY NOI AND COVERAGE RATIOS
UNAUDITED
<TABLE>
<CAPTION>
($000's omitted)
Three Months Ended September 30
2000 1999 +/- % Change
---- ---- --- --------
<S> <C> <C> <C> <C>
FUNDS FROM OPERATIONS: 20,070 15,906 4,164 26%
Less: Non - Building Revenue 6,023 2,238 3,785 169%
Plus: 2% Reserve for Tenant Credit Loss* 199 708 (509) -72%
Interest Expense (incl. Capital Lease Int.)* 10,698 7,497 3,201 43%
Non Real Estate Depreciation* 1,042 771 271 35%
MG&A Expense 2,540 2,979 (439) -15%
Preferred Dividend 2,300 2,300 -- 0%
------ ------ ------
GAAP NOI 30,826 27,923 2,903 10%
CASH ADJUSTMENTS
Less: Free Rent (Net of Amortization)* 1,127 1,518 (391) -26%
Straightline Revenue Adjustment* 2,237 1,907 330 17%
Plus: Ground Lease Straight-line Adjustment 312 442 (130) -29%
------ ------ ------
CASH NOI 27,774 24,940 2,835 11%
OPERATING MARGINS
Real Estate Revenue, net* 55,936 51,447 4,489 9%
GAAP NOI/Real Estate Revenue, net 55.11% 54.27%
Cash NOI/Real Estate Revenue, net 49.65% 48.48%
GAAP NOI before Ground Rent/Real Estate Revenue, net 60.77% 60.46%
Cash NOI before Ground Rent/Real Estate Revenue, net 54.75% 53.80%
COMPONENTS OF DEBT AND FIXED CHARGES
Interest on Fixed Rate Loans* 4,376 3,732 644 17%
Interest on Floating Rate Loans* 6,322 4,040 2,282 56%
Fixed Amortization Principal Payments 943 545 398 73%
------ ------ ------
TOTAL DEBT SERVICE 11,641 8,317 3,323 40%
Payments under Ground Lease Arrangements 2,852 2,737 115 4%
Preferred Stock Dividend 2,300 2,300 -- 0%
------ ------ ------
TOTAL FIXED CHARGES 16,793 13,354 3,439 26%
Interest Coverage Ratio 3.23 3.51
Debt Service Coverage ratio 2.97 3.28
Fixed Charge Coverage ratio 2.06 2.04
<CAPTION>
($000's omitted)
Three Months Ended June 30
2000 +/- % Change
---- --- --------
<S> <C> <C> <C>
FUNDS FROM OPERATIONS: 18,324 1,746 10%
Less: Non - Building Revenue 5,346 677 13%
Plus: 2% Reserve for Tenant Credit Loss* 240 (41) -17%
Interest Expense (incl. Capital Lease Int.)* 10,053 645 6%
Non Real Estate Depreciation* 1,040 2 0%
MG&A Expense 3,190 (650) -20%
Preferred Dividend 2,300 -- 0%
------ ------
GAAP NOI 29,801 1,025 3%
CASH ADJUSTMENTS
Less: Free Rent (Net of Amortization)* 1,554 (427) -27%
Straightline Revenue Adjustment* 2,356 (119) -5%
Plus: Ground Lease Straight-line Adjustment 441 (129) -29%
------ ------
CASH NOI 26,332 1,442 5%
OPERATING MARGINS
Real Estate Revenue, net* 52,614 3,322 6%
GAAP NOI/Real Estate Revenue, net 56.64%
Cash NOI/Real Estate Revenue, net 50.05%
GAAP NOI before Ground Rent/Real Estate Revenue, net 62.65%
Cash NOI before Ground Rent/Real Estate Revenue, net 55.21%
COMPONENTS OF DEBT AND FIXED CHARGES
Interest on Fixed Rate Loans* 4,063 313 8%
Interest on Floating Rate Loans* 5,990 333 6%
Fixed Amortization Principal Payments 885 58 7%
------ ------
TOTAL DEBT SERVICE 10,938 702 6%
Payments under Ground Lease Arrangements 2,769 83 3%
Preferred Stock Dividend 2,300 -- 0%
------ ------
TOTAL FIXED CHARGES 16,007 786 5%
Interest Coverage Ratio 3.15
Debt Service Coverage ratio 2.90
Fixed Charge Coverage ratio 1.98
</TABLE>
* Adjusted for properties reported in 1999 on a consolidated basis which are
less than wholly owned and which are not reflected in the unconsolidated joint
ventures.
Page 18
<PAGE>
2000 SAME STORE SELECTED FINANCIAL DATA
<TABLE>
<CAPTION>
($000's omitted) Three Months Ended September 30
2000 1999 +/- % Change
---- ---- --- --------
<S> <C> <C> <C> <C>
Rental Revenue 40,501 36,638 3,863 11%
Credit Loss (144) (643) 499 -78%
Signage Rent 496 559 (63) -11%
Escalation & Reimbursement Revenues 6,424 4,968 1,456 29%
Investment & Other Income 197 673 (476) -71%
------- ------- -------
Total Revenues 47,474 42,195 5,279 13%
Operating Expense 12,266 10,237 2,029 20%
Ground Rent 3,164 3,159 5 0%
Real Estate Taxes 6,140 5,905 235 4%
------- ------- -------
Total Operating Expenses 21,570 19,301 2,269 12%
EBITDA 25,904 22,894 3,010 13%
Interest 5,101 4,849 252 5%
Depreciation & Amortization 6,257 5,895 362 6%
Income Before Minority Interest 14,546 12,150 2,396 20%
Plus: Real Estate Depreciation & Amortization 6,016 5,642 374 7%
------- ------- -------
FUNDS FROM OPERATIONS: 20,562 17,792 2,770 16%
Less: Non - Building Revenue 168 427 (259) -61%
Plus: 2% Reserve for Tenant Credit Loss 144 643 (499) -78%
Interest Expense 5,101 4,849 252 5%
Non Real Estate Depreciation 241 253 (12) -5%
------- ------- -------
GAAP NOI 25,880 23,110 2,770 12%
CASH ADJUSTMENTS
Less: Free Rent (Net of Amortization) 994 1,275 (281) -22%
Straightline Revenue Adjustment 1,690 1,714 (24) -1%
Plus: Ground Lease Straight-line Adjustment 312 442 (130) -29%
------- ------- -------
CASH NOI 23,508 20,563 2,945 14%
OPERATING MARGINS
GAAP NOI to Real Estate Revenue, net 54.54% 54.49%
Cash NOI to Real Estate Revenue, net 49.54% 48.48%
GAAP NOI before Ground Rent/Real Estate Revenue, net 61.21% 61.94%
Cash NOI before Ground Rent/Real Estate Revenue, net 55.55% 54.89%
</TABLE>
<TABLE>
<CAPTION>
($000's omitted) Three Months Ended June 30
2000 +/- % Change
---- --- --------
<S> <C> <C> <C>
Rental Revenue 39,904 597 1%
Credit Loss (144) (0) 0%
Signage Rent 597 (101) -17%
Escalation & Reimbursement Revenues 4,240 2,184 52%
Investment & Other Income 252 (55) -22%
------- -------
Total Revenues 44,849 2,625 6%
Operating Expense 10,500 1,766 17%
Ground Rent 3,159 5 0%
Real Estate Taxes 5,870 270 5%
------- -------
Total Operating Expenses 19,529 2,041 10%
EBITDA 25,320 584 2%
Interest 5,159 (58) -1%
Depreciation & Amortization 6,515 (258) -4%
Income Before Minority Interest 13,646 900 7%
Plus: Real Estate Depreciation & Amortization 6,252 (236) -4%
------- -------
FUNDS FROM OPERATIONS: 19,898 664 3%
Less: Non - Building Revenue 192 (24) -12%
Plus: 2% Reserve for Tenant Credit Loss 144 -- 0%
Interest Expense 5,159 (58) -1%
Non Real Estate Depreciation 263 (22) -8%
------- -------
GAAP NOI 25,272 608 2%
CASH ADJUSTMENTS
Less: Free Rent (Net of Amortization) 1,667 (673) -40%
Straightline Revenue Adjustment 1,869 (179) -10%
Plus: Ground Lease Straight-line Adjustment 441 (129) -29%
------- -------
CASH NOI 22,177 1,331 6%
OPERATING MARGINS
GAAP NOI to Real Estate Revenue, net 56.41%
Cash NOI to Real Estate Revenue, net 49.50%
GAAP NOI before Ground Rent/Real Estate Revenue, net 63.46%
Cash NOI before Ground Rent/Real Estate Revenue, net 55.57%
</TABLE>
Page 19
<PAGE>
DEBT SUMMARY SCHEDULE
UNAUDITED
<TABLE>
<CAPTION>
($000's omitted)
FIXED RATE SECURED DEBT
Principal O/S
PROPERTY 9/30/2000 Coupon
--------- ------
<S> <C> <C>
673 First Avenue 12,704 9.00%
470 Park Avenue South 9,838 8.25%
50 West 23rd Street 21,000 7.33%
CIBC (against 1414 Ave. of Americas, 633 Third Avenue,
and 70 W. 36th St.) 33,950 7.90%
711 Third Avenue 49,225 8.13%
555 West 57th Street (Libor collar of 6.10% - 6.58% + 200bps) 69,775 8.58%
420 Lexington Avenue (Libor + 202bps) (interest rate cap of Libor 6.5%) 55,000 8.52%
875 Bridgeport Avenue, CT (1031 exchange asset) 14,909 8.32%
CIGNA (1412 Broadway) 52,000 7.62%
------- -----
TOTAL FIXED RATE SECURED DEBT 318,401 8.18% wtd avg
FLOATING RATE SECURED DEBT
Madison Properties (Libor + 150bps) 26,950 8.13%
Prudential Line of Credit (Libor + 125bps) 27,752 7.88%
------- -----
TOTAL FLOATING RATE SECURED DEBT 54,702 8.00% wtd avg
UNSECURED FLOATING RATE DEBT
Senior Unsecured Line of Credit 99,000 8.15%
Total Floating Rate Debt Outstanding 153,702 8.10% wtd avg
-------- -----
TOTAL DEBT 472,103 8.15% wtd avg
WEIGHTED AVERAGE BALANCE OUTSTANDING 497,175
WEIGHTED AVERAGE INTEREST RATE 8.15%
<CAPTION>
($000's omitted)
FIXED RATE SECURED DEBT 2000 2000
Annual Principal Maturity Due at
Property Payment Repayment Date Maturity
------- --------- ---- --------
<S> <C> <C> <C> <C>
673 First Avenue 3,985 2,749 12/13/2003 2,000
470 Park Avenue South 1,207 383 4/1/2004 8,285
50 West 23rd Street 1,539 -- 8/1/2007 19,234
CIBC (against 1414 Ave. of Americas, 633 Third Avenue,
and 70 W. 36th St.) 4,013 -- 5/1/2009 29,577
711 Third Avenue 4,067 65 9/10/2005 46,905
555 West 57th Street (Libor collar of 6.10% - 6.58% + 200bps) -- 394 11/1/2004 66,959
420 Lexington Avenue (Libor + 202bps) (interest rate cap of Libor 6.5%) -- -- 5/21/2001 55,000
875 Bridgeport Avenue, CT (1031 exchange asset) 645 16 5/10/2025 5,466
CIGNA (1412 Broadway) 3,962 -- 5/1/2006 47,854
------ -----
Total Fixed Rate Secured Debt 19,418 3,607
FLOATING RATE SECURED DEBT
Madison Properties (Libor + 150bps) -- 5/31/2001 26,950
Prudential Line of Credit (Libor + 125bps) -- 12/31/2000 27,752
Total Floating Rate Secured Debt
UNSECURED FLOATING RATE DEBT
Senior Unsecured Line of Credit -- 6/27/2003 99,000
Total Floating Rate Debt Outstanding --
Total Debt
Weighted Average Balance Outstanding --
Weighted Average Interest Rate --
<CAPTION>
($000's omitted)
FIXED RATE SECURED DEBT
Earliest Contractual Partner
Property Prepayment Date Lockouts thru
-------------------- -------------
<S> <C> <C>
673 First Avenue Open Aug-09
470 Park Avenue South Open Aug-09
50 West 23rd Street Aug-01 N/A
CIBC (against 1414 Ave. of Americas, 633 Third Avenue,
and 70 W. 36th St.) Apr-03 N/A
711 Third Avenue Jun-04 N/A
555 West 57th Street (Libor collar of 6.10% - 6.58% + 200bps) Open N/A
420 Lexington Avenue (Libor + 202bps) (interest rate cap of Libor 6.5%) Open N/A
875 Bridgeport Avenue, CT (1031 exchange asset) Open N/A
CIGNA (1412 Broadway) Apr-00 N/A
Total Fixed Rate Secured Debt
FLOATING RATE SECURED DEBT
Madison Properties (Libor + 150bps) Open
Prudential Line of Credit (Libor + 125bps) Open
Total Floating Rate Secured Debt
UNSECURED FLOATING RATE DEBT
Senior Unsecured Line of Credit
Total Floating Rate Debt Outstanding
Total Debt
Weighted Average Balance Outstanding
Weighted Average Interest Rate
</TABLE>
SUMMARY OF JOINT VENTURE DEBT
<TABLE>
<CAPTION>
Principal O/S 2000 2000
------------------------------------- Annual Principal
Gross Principal SLG Share Coupon Payment Repayment
--------------- --------- ------ ------- ---------
<S> <C> <C> <C> <C> <C>
JOINT VENTURE DEBT
90 Broad JV (Libor + 175bps) 32,000 11,200 8.37% -
1250 Broadway JV (Libor + 300bps) 64,650 32,260 9.63% -
321 W 44th JV (Libor + 250bps) 22,000 7,700 9.13% -
100 Park Avenue JV 120,000 59,880 8.00% -
-------- ------- -----
TOTAL JOINT VENTURE DEBT 238,650 111,040 8.59%
WEIGHTED AVERAGE BALANCE OUTSTANDING WITH SLG JV DEBT ALLOCATED 606,436
WEIGHTED AVERAGE INTEREST RATE WITH SLG JV DEBT ALLOCATED 8.25%
TOTAL FIXED RATE DEBT / TOTAL DEBT (EXCL. LOC) 78%
TOTAL FIXED RATE DEBT / TOTAL DEBT (EXCL. LOC AND FLOATING ASSETS) 83%
<CAPTION>
Maturity Due at Earliest Contractual Partner
Date Maturity Prepayment Date Lockouts thru
-------- -------- -------------------- ---------------
<S> <C> <C> <C> <C>
JOINT VENTURE DEBT
90 Broad JV (Libor + 175bps) 3/31/2002 11,200 Open
1250 Broadway JV (Libor + 300bps) 8/30/2002 32,260 Open
321 W 44th JV (Libor + 250bps) 4/30/2003 7,700 Open
100 Park Avenue JV
TOTAL JOINT VENTURE DEBT
WEIGHTED AVERAGE BALANCE OUTSTANDING WITH SLG JV DEBT ALLOCATED
WEIGHTED AVERAGE INTEREST RATE WITH SLG JV DEBT ALLOCATED
TOTAL FIXED RATE DEBT / TOTAL DEBT (EXCL. LOC)
TOTAL FIXED RATE DEBT / TOTAL DEBT (EXCL. LOC AND FLOATING ASSETS)
</TABLE>
Page 20
<PAGE>
SUMMARY OF GROUND LEASE ARRANGEMENTS
Unaudited
<TABLE>
<CAPTION>
($000's omitted)
2000 CASH 2001 CASH DEFERRED LAND YEAR OF
PROPERTY PAYMENT (000s) PAYMENT (000s) LEASE OBLIGATIONS (1) MATURITY
-------- -------------- -------------- --------------------- --------
<S> <C> <C> <C> <C>
OPERATING LEASES
673 1st Avenue 2,789 3,010 11,463 2037
1140 Avenue of Americas (2) 348 348 -- 2016 (3)
420 Lexington (2) 7,074 7,074 -- 2008 (4)
711 3rd Avenue (2) (5) 775 1,163 1,342 2032
------- ------ ------
10,986 11,595 12,805
======= ====== ======
2000 CASH 2001 CASH CAPITALIZED YEAR OF
PROPERTY PAYMENT (000s) PAYMENT (000s) LEASE OBLIGATIONS (1) MATURITY
-------- -------------- -------------- --------------------- --------
CAPITALIZED LEASE
673 1st Avenue 1,177 1,290 15,242 2037
====== ====== ======
</TABLE>
(1) As per the balance sheet at September 30, 2000.
(2) These ground leases are classified as operating leases and, therefore, do
not appear on the balance sheet as an obligation.
(3) The Company has a unilateral option to extend the ground lease for an
additional 50 years, to 2066.
(4) Subject to renewal at the Company's option through 2029.
(5) Excludes portion payable to SL Green as owner of 50% leasehold.
21
<PAGE>
SELECTED PROPERTY DATA
<TABLE>
<CAPTION>
Rentable % of Total
Properties Submarket Ownership Sq. Feet Sq. Feet
---------- --------- --------- -------- ----------
<S> <C> <C> <C> <C>
PROPERTIES 100% OWNED
"SAME STORE"
673 First Avenue Grand Central South Leasehold Interest 422,000 4.62
470 Park Avenue South Park Avenue South/ Flatiron Fee Interest 260,000 2.85
70 W. 36th Street Garment Fee Interest 151,000 1.65
1414 Avenue of the Americas Rockefeller Center Fee Interest 111,000 1.22
1372 Broadway Garment Fee Interest 508,000 5.56
1140 A of A Rockefeller Center Leasehold Interest 191,000 2.09
50 W. 23rd Street Chelsea Fee Interest 333,000 3.65
110 East 42nd Street Grand Central Fee Interest 251,000 2.75
17 Battery Place World Trade/ Battery Fee Interest (1) 811,000 8.88
633 Third Avenue (condo interest) Grand Central North Fee Interest (1) 41,000 0.45
1466 Broadway Times Square Fee Interest 289,000 3.17
420 Lexington Ave (Graybar) Grand Central North Operating Sublease 1,188,000 13.01
440 Ninth Avenue Garment Fee Interest 339,000 3.71
711 Third Avenue Grand Central North Operating Sublease (2) 524,000 5.74
1412 Broadway Times Square South Fee Interest 389,000 4.26
---------
SUBTOTAL / WEIGHTED AVERAGE 5,808,000
ACQUIRED 1999
555 West 57th Midtown West Fee Interest 941,000 10.31
286 Madison Avenue Grand Central South Fee Interest 112,000 1.23
290 Madison Avenue Grand Central South Fee Interest 36,800 0.40
292 Madison Avenue Grand Central South Fee Interest 187,000 2.05
---------
SUBTOTAL / WEIGHTED AVERAGE 1,276,800
TOTAL/ WEIGHTED AVERAGE PROPERTIES 100% OWNED 7,084,800
PROPERTIES LESS THAN 100% OWNED
UNCONSOLIDATED
90 Broad Street - 35% Financial Fee Interest 339,000 3.71
1250 Broadway - 50% Penn Station Fee Interest 670,000 7.34
100 Park Avenue - 50% Grand Central South Fee Interest 834,000 9.13
321 West 44th Street -35% Times Square Fee Interest 203,000 2.22
---------
SUBTOTAL / WEIGHTED AVERAGE 2,046,000
GRAND TOTAL/ WEIGHTED AVERAGE 9,130,800 100.00
GRAND TOTAL - SLG SHARE OF ANNUALIZED RENT
</TABLE>
<TABLE>
<CAPTION>
Percent Occupied
-------------------------------------------------------------------
9/30/99 or As
Properties 9/30/2000 6/30/2000 3/31/2000 Later Acquired
---------- --------- --------- --------- --------------
<S> <C> <C> <C> <C>
PROPERTIES 100% OWNED
"SAME STORE"
673 First Avenue 100 100 100 100
470 Park Avenue South 99 99 98 99
70 W. 36th Street 98 99 98 100
1414 Avenue of the Americas 100 100 95 98
1372 Broadway 99 100 100 100
1140 A of A 100 100 100 100
50 W. 23rd Street 99 100 99 100
110 East 42nd Street 99 99 99 100
17 Battery Place 93 93 93 87
633 Third Avenue (condo interest) 100 100 100 100
1466 Broadway 92 93 93 95
420 Lexington Ave (Graybar) 99 98 98 91
440 Ninth Avenue 94 99 94 100
711 Third Avenue 100 100 100 96
1412 Broadway 98 97 96 94
--- --- --- ---
SUBTOTAL / WEIGHTED AVERAGE 98 98 97 95
Acquired 1999
555 West 57th 100 100 100 100
286 Madison Avenue 99 99 98 95
290 Madison Avenue 100 100 83 55
292 Madison Avenue 95 100 100 97
--- --- --- ---
SUBTOTAL / WEIGHTED AVERAGE 99 100 99 98
TOTAL/ WEIGHTED AVERAGE PROPERTIES 100% OWNED 98 98 98 96
PROPERTIES LESS THAN 100% OWNED
UNCONSOLIDATED
90 Broad Street - 35% 99 98 89 82
1250 Broadway - 50% 99 100 100 97
100 Park Avenue - 50% 99 99 99 97
321 West 44th Street -35% 98 98 98 97
--- --- --- ---
SUBTOTAL / WEIGHTED AVERAGE 99 99 98 95
GRAND TOTAL/ WEIGHTED AVERAGE 98 98 98 95
GRAND TOTAL - SLG SHARE OF ANNUALIZED RENT
</TABLE>
<TABLE>
<CAPTION>
Annualized Annualized
Annualized Rent as % of Rent as % of Number of
Properties Rent ($'s) Wholly Owned SLG Interests Tenants
---------- ---------- ------------ ------------- -------
<S> <C> <C> <C> <C>
PROPERTIES 100% OWNED
"SAME STORE"
673 First Avenue 12,153,972 6.33 5.56 14
470 Park Avenue South 6,832,403 3.56 3.12 28
70 W. 36th Street 3,458,648 1.80 1.58 35
1414 Avenue of the Americas 4,252,525 2.22 1.94 28
1372 Broadway 12,930,904 6.74 5.91 28
1140 A of A 6,166,799 3.21 2.82 26
50 W. 23rd Street 7,219,515 3.76 3.30 18
110 East 42nd Street 7,809,854 4.07 3.57 33
17 Battery Place 16,016,007 8.35 7.32 55
633 Third Avenue (condo interest) 1,567,922 0.82 0.72 3
1466 Broadway 9,655,592 5.03 4.42 117
420 Lexington Ave (Graybar) 39,826,578 20.75 18.21 252
440 Ninth Avenue 7,065,782 3.68 3.23 16
711 Third Avenue 17,243,967 8.99 7.89 23
1412 Broadway 11,329,272 5.90 5.18 120
SUBTOTAL / WEIGHTED AVERAGE 163,529,740 85.22 74.78 796
Acquired 1999
555 West 57th 18,211,267 9.49 8.33 25
286 Madison Avenue 3,048,355 1.59 1.39 38
290 Madison Avenue 1,101,589 0.57 0.50 4
292 Madison Avenue 6,008,743 3.13 2.75 18
SUBTOTAL / WEIGHTED AVERAGE 28,369,954 14.78 12.97 85
TOTAL/ WEIGHTED AVERAGE PROPERTIES 100% OWNED 191,899,694 100.00 87.76 881
PROPERTIES (100% OWNED)
UNCONSOLIDATED
90 Broad Street - 35% 8,437,323 1.35 45
1250 Broadway - 50% 16,937,203 3.86 29
100 Park Avenue - 50% 28,306,687 6.46 37
321 West 44th Street -35% 3,554,681 0.57 26
----------- ------ ----
SUBTOTAL / WEIGHTED AVERAGE 57,235,894 12.24 137
GRAND TOTAL/ WEIGHTED AVERAGE 249,135,588 1018
GRAND TOTAL - SLG SHARE OF ANNUALIZED RENT 218,673,597 100.00
</TABLE>
(1) Condominium Unit
(2) Including Ownership of 50% in Building Fee
Page 22
<PAGE>
<TABLE>
<CAPTION>
LARGEST TENANTS BY SQUARE FEET LEASED
------------------------------------------------------------------------------------------------------------------------------------
WHOLLY OWNED
Lease
Tenant Property Expiration
------ -------- ----------
<S> <C> <C>
The City of New York 17 Battery Place 12/7/2000
BMW of Manhattan, Inc. 555 West 57th Street 7/31/2012
City University of New York-CUNY 555 West 57th Street 5/31/10 & 1/29/15
Metro North Commuter Railroad Co. 420 Lexington Avenue 5/14/08 & 1/31/16
St. Luke's Roosevelt Hospital 555 West 57th Street 6/30/2014
C.B.S., Inc. 555 West 57th Street 12/31/03 & 6/30/10
New York Presbyterian Hospital 555 West 57th Street & 673 First Avenue 8/31/06 & 12/14/09
Ross Stores 1372 Broadway 5/31/2007
Ann Taylor Inc. 1372 Broadway 7/31/2010
Crain Communications Inc. 711 Third Avenue 1/31/2009
Parade Publications, Inc. 711 Third Avenue 8/31/2010
Ketchum, Inc. 711 Third Avenue 11/30/2015
Kallir, Phillips, Ross Inc. 673 First Avenue 6/30/2004
UNICEF 673 First Avenue 12/31/03 & 12/31/12
New York Life Insurance Company 420 Lexington Avenue 6/30/2010
Greater New York Hospital 555 West 57th Street 3/31/2014
Wildcat Service Corporation 17 Battery Place 6/30/2009
Gibbs & Cos Inc. 50 West 23rd Street 8/31/2005
Cipriani 42nd Street, LLC 110 East 42nd Street 12/31/2008
Young & Rubicam, Inc. 290 & 292 Madison Avenue 8/31/15 & 9/30/15
MCI International 17 Battery Place 10/31/2001
Capital Mercury Shirt 1372 Broadway 7/31/2005
NYC, Board of Education 50 West 23rd Street 7/4/2010
Newport News 711 Third Avenue 3/31/11 & 7/31/11
Leslie Fay Companies, Inc. 1412 Broadway 8/31/2008
Dow Jones & Co. Inc. 420 Lexington Avenue 7/31/2001
TOTAL
WHOLLY OWNED PORTFOLIO
------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------
JOINT VENTURE PROPERTIES (1)
The City of New York (if combined) 1250 Broadway & 17 Battery Place 9/30/07, 12/07 & 2/28/06
J&W Seligman & Co., Inc. 100 Park Avenue 1/31/2009
Visiting Nurse Service of NY 1250 Broadway 8/31/2006
Philip Morris Management Corporation 100 Park Avenue 12/07 & 3/7/01
Information Builders Inc 1250 Broadway 3/31/2003
Interep National Radio Sales 100 Park Avenue 3/31/2005
MCI International ( if combined) 100 Park Avenue & 17 Battery Place 10/31/01 & 8/31/04
TOTAL
WHOLLY OWNED PORTFOLIO + ALLOCATED JV PROPERTIES
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------------
% of % of % of
WHOLLY OWNED Wholly Wholly Aggregate
Total Owned Owned SLG Share of SLG Share of
Leased Leased Annualized Annualized Annualized Annualized
Tenant Square Feet Square Feet Rent Rent ($) Rent($) Rent
------ ----------- ----------- ---------- ----------- ------------ -----------
<S> <C> <C> <C> <C> <C> <C>
The City of New York 287,929 4.14 3.15 6,046,551 --
BMW of Manhattan, Inc. 227,782 3.27 1.45 2,775,555 2,775,555 1.27
City University of New York-CUNY 143,061 2.06 1.77 3,387,769 3,387,769 1.55
Metro North Commuter Railroad Co. 134,687 1.94 1.69 3,251,702 3,251,702 1.49
St. Luke's Roosevelt Hospital 133,700 1.92 1.56 2,993,732 2,993,732 1.37
C.B.S., Inc. 127,320 1.83 1.25 2,396,017 2,396,017 1.10
New York Presbyterian Hospital 99,650 1.43 1.28 2,447,534 2,447,534 1.12
Ross Stores 98,830 1.42 1.27 2,445,048 2,445,048 1.12
Ann Taylor Inc. 93,020 1.34 1.32 2,526,797 2,526,797 1.16
Crain Communications Inc. 90,531 1.30 1.55 2,978,840 2,978,840 1.36
Parade Publications, Inc. 82,444 1.18 1.03 1,978,656 1,978,656 0.90
Ketchum, Inc. 81,423 1.17 1.65 3,167,613 3,167,613 1.45
Kallir, Phillips, Ross Inc. 80,000 1.15 1.37 2,635,292 2,635,292 1.21
UNICEF 80,000 1.15 1.35 2,592,750 2,592,750 1.19
New York Life Insurance Company 75,373 1.08 1.31 2,523,438 2,523,438 1.15
Greater New York Hospital 74,937 1.08 1.14 2,187,019 2,187,019 1.00
Wildcat Service Corporation 73,044 1.05 0.74 1,424,358 1,424,358 0.65
Gibbs & Cos Inc. 69,782 1.00 0.97 1,853,142 1,853,142 0.85
Cipriani 42nd Street, LLC 69,703 1.00 1.30 2,500,000 2,500,000 1.14
Young & Rubicam, Inc. 66,936 0.96 1.21 2,314,847 2,314,847 1.06
MCI International 21,994 0.32 0.36 692,438 692,438 0.32
Capital Mercury Shirt 64,122 0.92 0.74 1,410,684 1,410,684 0.65
NYC, Board of Education 64,000 0.92 0.42 801,400 801,400 0.37
Newport News 61,327 0.88 0.89 1,698,709 1,698,709 0.78
Leslie Fay Companies, Inc. 60,999 0.88 0.92 1,757,330 1,757,330 0.80
Dow Jones & Co. Inc. 56,442 0.81 0.90 1,726,435 1,726,435 0.79
--------- ----- ----- -----------
TOTAL 2,519,036 36.20 32.58 62,513,656
WHOLLY OWNED PORTFOLIO 6,958,392 191,899,694
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
JOINT VENTURE PROPERTIES (1)
The City of New York (if combined) 335,929 7,038,551 6,541,559 2.99
J&W Seligman & Co., Inc. 175,346 5,385,368 2,687,299 1.23
Visiting Nurse Service of NY 168,000 3,441,345 1,717,231 0.79
Philip Morris Management Corporation 165,811 6,018,982 3,003,472 1.37
Information Builders Inc 88,571 1,988,651 992,337 0.45
Interep National Radio Sales 66,866 2,249,202 1,122,352 0.51
MCI International ( if combined) 65,578 2,650,558 1,672,539 0.76
--------- ---------- -----
TOTAL 1,066,101 74,203,894 33.93
WHOLLY OWNED PORTFOLIO + ALLOCATED JV PROPERTIES 218,673,597
--------------------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) Consolidates SLG's prorata interest in the Annualized Rent of all joint
ventures with wholly owned Annualized Rent. The prorata tenant exposure is
then calculated as a percentage of this new total.
Page 23
<PAGE>
Third Quarter - 2000 Leasing Activity
Available Space
<TABLE>
<CAPTION>
ACTIVITY TYPE BUILDING ADDRESS # OF LEASES USABLE SF
------------- ---------------- ----------- ---------
<S> <C> <C> <C>
VACANCY @ 6/30/00 211,633
EXPIRING SPACE
OFFICE
1250 Broadway 1 2,771
292 Madison Avenue 6 61,146
1414 6th Avenue 1 908
1372 Broadway 2 7,480
110 East 42nd Street 1 1,820
17 Battery Place 1 354
1412 Broadway 1 2,396
1466 Broadway 9 6,478
420 Lexington Avenue 11 10,133
--- ------
TOTAL/WEIGHTED AVERAGE 33 93,486
MOVE OUTS
OFFICE
100 Park Avenue 1 5,247
90 Broad Street 1 15,500
292 Madison Avenue 1 10,269
70 West 36th Street 2 3,046
1140 Sixth Avenue 2 10,040
1372 Broadway 1 26,729
50 West 23rd Street 1 2,724
110 East 42nd Street 2 7,370
1412 Broadway 2 2,751
321 West 44th Street 1 188
711 Third Avenue 1 6,607
440 Ninth Avenue 2 18,603
1466 Broadway 5 4,899
420 Lexington Avenue 5 9,813
-- -----
TOTAL/WEIGHTED AVERAGE 27 123,786
EVICTED TENANTS
OFFICE 1412 Broadway 1 3,186
RELOCATING TENANTS
OFFICE
420 Lexington Avenue 1 172
ADDT'L AVAILABLE SPACE OFFICE 62 220,630
AVAILABLE SPACE 432,263
</TABLE>
<TABLE>
<CAPTION>
PREV. ESCALATED
ACTIVITY TYPE BUILDING ADDRESS RENTABLE SF RENT/RENTABLE SF* ($'S)
------------- ---------------- ----------- -----------------------
<S> <C> <C> <C>
VACANCY @ 6/30/00
EXPIRING SPACE
OFFICE
1250 Broadway 2,771 23.09
292 Madison Avenue 61,302 26.73
1414 6th Avenue 1,275 27.59
1372 Broadway 11,443 23.22
110 East 42nd Street 2,244 25.00
17 Battery Place 354 32.44
1412 Broadway 3,284 33.00
1466 Broadway 8,307 30.03
420 Lexington Avenue 11,338 27.06
------- -----
TOTAL/WEIGHTED AVERAGE 102,318 26.74
MOVE OUTS
OFFICE
100 Park Avenue 5,247 45.00
90 Broad Street 15,500 28.47
292 Madison Avenue 10,113 28.00
70 West 36th Street 3,046 24.54
1140 Sixth Avenue 10,150 39.83
1372 Broadway 34,045 24.39
50 West 23rd Street 2,724 10.00
110 East 42nd Street 9,241 23.13
1412 Broadway 3,842 37.08
321 West 44th Street 188 46.05
711 Third Avenue 8,991 30.98
440 Ninth Avenue 20,886 18.45
1466 Broadway 6,157 32.46
420 Lexington Avenue 11,803 26.11
------- -----
TOTAL/WEIGHTED AVERAGE 141,933 27.01
EVICTED TENANTS
OFFICE 1412 Broadway 4,562 19.08
RELOCATING TENANTS
OFFICE
420 Lexington Avenue 223 18.03
ADDT'L AVAILABLE SPACE OFFICE 249,036 26.75
AVAILABLE SPACE
</TABLE>
* Escalated Rent is calculated as Total Annual Income less Electric Charges.
Page 24
<PAGE>
Third Quarter - 2000 Leasing Activity
Leased Space
<TABLE>
<CAPTION>
# OF
ACTIVITY TYPE BUILDING ADDRESS LEASES USABLE SF RENTABLE SF
------------- ---------------- ------ --------- -----------
<S> <C> <C> <C> <C>
AVAILABLE SPACE 432,263
RENEWING TENANTS
OFFICE
110 East 42nd Street 1 1,820 2,826
1466 Broadway 1 749 1,015
420 Lexington Avenue 1 806 986
-- ---- ---
TOTAL/WEIGHTED AVERAGE 3 3,375 4,827
RELOCATING TENANTS
OFFICE
420 Lexington Avenue 1 321 370
EXPANSION TENANTS
OFFICE
1140 Sixth Avenue 2 10,040 11,546
420 Lexington Avenue 2 929 1,330
-- ---- -----
TOTAL/WEIGHTED AVERAGE 4 10,969 12,876
NEW TENANTS
REPLACING OLD TENANTS
OFFICE
100 Park Avenue 1 5,247 5,500
90 Broad Street 2 17,699 19,929
292 Madison Avenue 1 61,302 61,614
70 West 36th Street 1 1,267 1,267
1372 Broadway 2 30,751 40,549
110 East 42nd Street 2 5,498 8,304
1412 Broadway 2 2,876 3,101
711 Third Avenue 2 6,607 9,483
1466 Broadway 2 500 657
420 Lexington Avenue 10 18,846 24,108
--- ------- ------
TOTAL/WEIGHTED AVERAGE 25 150,593 174,512
</TABLE>
<TABLE>
<CAPTION>
RENT / PREV. ESCALATED RENT /
ACTIVITY TYPE BUILDING ADDRESS RENTABLE SF* ($'S) RENTABLE SF** ($'S)
------------- ---------------- ------------------ ----------------------
<S> <C> <C> <C>
AVAILABLE SPACE
RENEWING TENANTS
OFFICE
110 East 42nd Street 38.00 19.85
1466 Broadway 43.00 42.00
420 Lexington Avenue 50.00 23.94
------ -----
TOTAL/WEIGHTED AVERAGE 41.50 25.34
RELOCATING TENANTS
OFFICE
420 Lexington Avenue 28.81 13.59
EXPANSION TENANTS
OFFICE
1140 Sixth Avenue 42.47 35.45
420 Lexington Avenue 46.81 37.63
------ -----
TOTAL/WEIGHTED AVERAGE 42.92 35.67
NEW TENANTS
REPLACING OLD TENANTS
OFFICE
100 Park Avenue 53.00 42.93
90 Broad Street 35.11 27.87
292 Madison Avenue 34.50 26.72
70 West 36th Street 37.00 28.11
1372 Broadway 35.07 20.48
110 East 42nd Street 37.49 20.57
1412 Broadway 39.43 36.27
711 Third Avenue 40.56 30.98
1466 Broadway 29.06 21.60
420 Lexington Avenue 45.99 21.26
------ -----
TOTAL/WEIGHTED AVERAGE 37.43 25.26
</TABLE>
<TABLE>
<CAPTION>
FREE RENT
ACTIVITY TYPE BUILDING ADDRESS T.I / SF ($'S) # OF MONTHS
------------- ---------------- -------------- ------------
<S> <C> <C> <C>
AVAILABLE SPACE
RENEWING TENANTS
OFFICE
110 East 42nd Street 5.00 -
1466 Broadway - -
420 Lexington Avenue - -
---- ----
TOTAL/WEIGHTED AVERAGE 2.93 -
RELOCATING TENANTS
OFFICE
420 Lexington Avenue - -
EXPANSION TENANTS
OFFICE
1140 Sixth Avenue - -
420 Lexington Avenue - 3
---- ----
TOTAL/WEIGHTED AVERAGE - 1
NEW TENANTS
REPLACING OLD TENANTS
OFFICE
100 Park Avenue 15.00 2
90 Broad Street - 4
292 Madison Avenue - 1
70 West 36th Street - -
1372 Broadway - -
110 East 42nd Street 6.26 5
1412 Broadway - -
711 Third Avenue 29.55 4
1466 Broadway - 1
420 Lexington Avenue 1.49 1
------ ----
TOTAL/WEIGHTED AVERAGE 2.58 1
</TABLE>
Page 25
<PAGE>
Third Quarter - 2000 Leasing Activity
Leased Space
<TABLE>
<CAPTION>
# OF
ACTIVITY TYPE BUILDING ADDRESS LEASES USABLE SF RENTABLE SF
------------- ---------------- ------ --------- -----------
<S> <C> <C> <C> <C>
NEW TENANTS
REPLACING VACANCIES
OFFICE
100 Park Avenue 1 1,223 1,223
1250 Broadway 1 360 360
90 Broad Street 1 782 782
1140 Sixth Avenue 1 132 150
1412 Broadway 2 6,698 8,755
321 West 44th Street 1 600 600
420 Lexington Avenue 3 10,209 10,741
-- ------- ------
TOTAL/WEIGHTED AVERAGE 10 20,004 22,611
LEASED SPACE TOTAL OFFICE 43 185,262 215,196
TOTAL AVAILABLE SPACE 9/30/00 (NET OF HOLDOVER) 247,001
HOLDOVER TENANTS
1414 6th Avenue 1 908 1,275
17 Battery Place 1 354 354
1412 Broadway 1 2,396 3,284
1466 Broadway 8 5,729 7,292
420 Lexington Avenue 5 3,462 3,866
-- ------ -----
16 12,849 16,071
TOTAL AVAILABLE SPACE 9/30/00 (INCL. HOLDOVER) 234,152
EARLY RENEWALS
OFFICE
286 Madison 1 6,850 6,850
420 Lexington Avenue 1 500 714
-- ---- ---
2 7,350 7,564
</TABLE>
<TABLE>
<CAPTION>
RENT / PREV. ESCALATED RENT /
ACTIVITY TYPE BUILDING ADDRESS RENTABLE SF* ($'S) RENTABLE SF** ($'S)
------------- ---------------- ------------------ ---------------------
<S> <C> <C> <C>
NEW TENANTS
REPLACING VACANCIES
OFFICE
100 Park Avenue 25.00
1250 Broadway 83.33
90 Broad Street 24.50
1140 Sixth Avenue 44.00
1412 Broadway 35.00
321 West 44th Street 23.32
420 Lexington Avenue 40.49
-----
TOTAL/WEIGHTED AVERAGE 37.22
LEASED SPACE TOTAL OFFICE 37.81 25.93
TOTAL AVAILABLE SPACE 9/30/00 (NET OF HOLDOVER)
HOLDOVER TENANTS
1414 6th Avenue 27.59 27.59
17 Battery Place 32.44 32.44
1412 Broadway 33.00 33.00
1466 Broadway 34.22 34.22
420 Lexington Avenue 38.61 31.93
------ -----
34.46 32.85
TOTAL AVAILABLE SPACE 9/30/00 (INCL. HOLDOVER)
EARLY RENEWALS
OFFICE
286 Madison 25.92 19.35
420 Lexington Avenue 47.00 30.38
------ -----
27.91 20.39
</TABLE>
<TABLE>
<CAPTION>
FREE RENT
ACTIVITY TYPE BUILDING ADDRESS T.I / SF ($'S) # OF MONTHS
------------- ---------------- -------------- -----------
<S> <C> <C> <C>
NEW TENANTS
REPLACING VACANCIES
OFFICE
100 Park Avenue - -
1250 Broadway - 2
90 Broad Street - -
1140 Sixth Avenue - -
1412 Broadway 21.26 -
321 West 44th Street - -
420 Lexington Avenue 16.76 -
------ ----
TOTAL/WEIGHTED AVERAGE 16.19 -
LEASED SPACE TOTAL OFFICE 3.86 1
Total Available Space 9/30/00 (net of Holdover)
HOLDOVER TENANTS
1414 6th Avenue - -
17 Battery Place - -
1412 Broadway - -
1466 Broadway - -
420 Lexington Avenue - -
------ ----
- -
TOTAL AVAILABLE SPACE 9/30/00 (INCL. HOLDOVER)
EARLY RENEWALS
OFFICE
286 Madison - -
420 Lexington Avenue - -
------ ----
- -
</TABLE>
* Annual Base Rent
** Escalated Rent is calculated as Total Annual Income less Electric Charges.
Page 26
<PAGE>
ANNUAL LEASE EXPIRATIONS
------------------------
<TABLE>
<CAPTION>
Annualized Rent Annualized Rent
Number of Square Footage Percentage of of Expiring of Expiring Year 2000 Weighted
Year of Lease Expiring of Expiring Total Lease Leases Leases Average Asking
Expiration Leases* Leases Sq. Ft. ($'s) $/psf** Rents $/psf
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
CONSOLIDATED PROPERTIES
In 1st Quarter 2000 25 56,317 0.81 1,278,461 22.70 39.85
In 2nd Quarter 2000 7 20,661 0.30 754,407 36.51 41.22
In 3rd Quarter 2000 14 15,992 0.23 544,906 34.07 41.36
In 4th Quarter 2000 56 101,266 1.46 3,047,314 30.09 41.74
TOTAL 2000 102 194,236 2.79 5,625,088 28.96 41.11
2001 138 403,819 5.80 12,011,357 29.74 42.06
2002 127 408,688 5.87 10,905,203 26.68 41.63
2003 129 556,450 8.00 15,512,269 27.88 41.47
2004 91 517,632 7.44 14,599,025 28.20 41.91
2005 78 550,899 7.92 17,101,005 31.04 41.29
2006 39 406,457 5.84 10,633,623 26.16 40.76
2007 36 455,552 6.55 11,108,778 24.39 40.15
2008 41 618,303 8.89 17,434,963 28.20 39.97
2009 42 609,240 8.76 16,757,541 27.51 41.66
THEREAFTER 78 2,237,116 32.15 60,210,842 26.91 42.80
------------------------------------------------------------------------------------
901 6,958,392 100.00 191,899,694 27.58 41.70
</TABLE>
* Tenants may have multiple leases.
** Represents in place annualized rent allocated by year of maturity.
Page 27
<PAGE>
ANNUAL LEASE EXPIRATIONS
------------------------
<TABLE>
<CAPTION>
Annualized Rent Annualized Rent
Number of Square Footage Percentage of of Expiring of Expiring Year 2000 Weighted
Year of Lease Expiring of Expiring Total Lease Leases Leases Average Asking
Expiration Leases* Leases Sq. Ft. ($'s) $/psf** Rents $/psf
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
JOINT VENTURE PROPERTIES
In 1st Quarter 2000 1 250 0.01 11,612 46.45 32.50
In 2nd Quarter 2000 1 5,792 0.29 112,836 19.48 32.50
In 3rd Quarter 2000 -- -- -- -- -- --
In 4th Quarter 2000 1 490 0.02 13,494 27.54 32.50
TOTAL 2000 3 6,532 0.32 137,942 21.12 32.50
2001 11 25,921 1.28 554,947 21.41 38.19
2002 16 158,720 7.84 3,540,120 22.30 41.02
2003 16 220,500 10.89 5,208,338 23.62 42.32
2004 19 218,318 10.78 6,445,422 29.52 42.86
2005 14 132,085 6.52 3,916,874 29.65 49.42
2006 11 253,808 12.53 5,756,637 22.68 44.87
2007 7 268,431 13.25 8,617,342 32.10 51.35
2008 12 142,159 7.02 4,041,195 28.43 45.37
2009 13 327,057 16.15 10,314,834 31.54 51.43
THEREAFTER 21 272,042 13.43 8,702,243 31.99 45.30
------------------------------------------------------------------------------------
143 2,025,573 100.00 57,235,894 28.26 46.26
</TABLE>
* Tenants may have multiple leases.
** Represents in place annualized rent allocated by year of maturity.
Page 28
<PAGE>
SUMMARY OF REAL ESTATE ACQUISITION ACTIVITY POST 1997
<TABLE>
<CAPTION>
Net Rentable
1998 Acquisitions Property Type of Ownership Submarket s.f.
----------------- -------- ----------------- --------- ------------
<S> <C> <C> <C> <C>
Mar-98 420 Lexington Operating Sublease Grand Central North 1,188,000
Mar-98 1466 Broadway Fee Interest Times Square 289,000
Mar-98 321 West 44th Fee Interest Times Square 203,000
May-98 711 3rd Avenue Operating Sublease Grand Central North 524,000
Jun-98 440 9th Avenue Fee Interest Garment 339,000
Aug-98 1412 Broadway Fee Interest Times Square South 389,000
---------
2,932,000
1999 Acquisitions
-----------------
Jan-99 420 Lexington Leasehold Sub-leasehold Grand Central North
Jan-99 555 West 57th - 65% JV Fee Interest Midtown West 941,000
May-99 90 Broad Street - 35% JV Fee Interest Financial 339,000
May-99 THE MADISON PROPERTIES: Fee Interest Grand Central South
286 Madison Avenue 112,000
290 Madison Avenue 36,800
292 Madison Avenue 187,000
Aug-99 1250 Broadway - 50% JV Fee Interest Penn Station 670,000
Nov-99 555 West 57th - remaining 35% Fee Interest Midtown West -
---------
2,285,800
2000 Acquisitions
-----------------
Feb-00 100 Park Avenue Fee Interest Grand Central South 834,000
Contribution to JV
------------------
May-00 321 West 44th Fee Interest Times Square 203,000
Announced in 2000
-----------------
Target - 4Q00 180 Madison Avenue Fee Interest 265,000
Target - 4Q00 1370 Broadway Fee Interest Garment 255,000
Target - 1Q01 1 Park Avenue Various Interests Grand Central South 913,000
<CAPTION>
% Leased % Leased Acquisition
1998 Acquisitions at acquisition 9/30/2000 Price ($'s)
----------------- -------------- ---------- -----------
<S> <C> <C> <C>
Mar-98 83 99 78,000,000
Mar-98 87 92 64,000,000
Mar-98 96 98 17,000,000
May-98 79 100 65,600,000 (1)
Jun-98 76 94 32,000,000
Aug-98 90 98 82,000,000
-----------
338,600,000
<CAPTION>
1999 Acquisitions
-----------------
<S> <C> <C> <C>
Jan-99 27,300,000
Jan-99 100 100 66,700,000 (2)
May-99 82 99 34,500,000
May-99 50,000,000
99 99
86 100
97 95
Aug-99 97 99 93,000,000
Nov-99 34,100,000
-----------
305,600,000
2000 Acquisitions
-----------------
Feb-00 97 99 192,000,000
Contribution to JV
------------------
May-00 98 98 28,400,000
Announced in 2000
-----------------
Target - 4Q00 87 41,250,000
Target - 4Q00 97 50,500,000
Target - 1Q01 97 233,900,000
</TABLE>
(1) This includes the issuance of 44,772 OP units (valued at $1mm) and $20mm
for a 50% interest in the Building Fee (purchased 7/98).
(2) This includes the assumption of mortgage debt for $28.6mm (65% of $44mm).
Page 29
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