SL Green Realty Corp. (SLG, NYSE)
Industry: REIT - Office
Annual report, fiscal year 2020


20 SL GREEN
20 ANNUAL
20 REPORT



## Financial Highlights

(All data as of 12/31/20 unless otherwise noted)

23

YEARS LISTED

$7.11

FFO PER SHARE

93.4%

MANHATTAN SAME-STORE
LEASED OCCUPANCY

$1.6B

COMBINED REVENUES

$1.7B

LIQUIDITY (2)

32.6M

SHARES REPURCHASED

38.2M

TOTAL SQUARE FEET (1)

$3.64

ANNUAL DIVIDEND
PER SHARE

$14.5B

ENTERPRISE VALUE

88

PROPERTIES (1)

98.1%

COLLECTION FROM
OFFICE TENANTS (3)

(1) Includes DPE interests.
(2) Includes consolidated cash,
marketable securities and undrawn
capacity on the Company’s
unsecured revolving credit facility;
excludes SLG share of unconsolidated
JV cash and cash equivalents.
(3) Reflects 2020 billed amounts
collected as of 3/31/21.



## Table of Contents

Dear Shareholders —— 02
For Our Future —— 09
One Vanderbilt —— 13
One Madison —— 17
185 Broadway —— 18
760 Madison | 15 Beekman —— 18
For Our Community —— 21
Food \( ^{1} \) st —— 21
For Our Tenants —— 25
SLG Forward —— 25
For Our Employees —— 26
Returning Safely —— 26
For Our Shareholders —— 29
2020 Highlights —— 29
For Our City —— 30
By New Yorkers, For New Yorkers —— 32
Map —— 32
Portfolio Listing —— 34
Form 10-K —— 35
Corporate Directory —— IBC







MARC HOLLIDAY

Chairman & Chief Executive Officer



ANDREW W. MATHIAS

President



# Dear Shareholders,

This is a long-awaited spring of hope and optimism.

After a year defined by lockdowns, closures and restrictions, New York City is now undergoing a vast reawakening. Businesses, cultural institutions, schools and live entertainment venues are reopening and a new energy level is palpable as hotels, restaurants and retailers welcome customers back. With 11.5 million vaccine doses administered to New York residents at the time of publication, and every adult in the country eligible for vaccination this month, the process of restoring normalcy to routines that were dislocated by COVID-19 is underway and gaining momentum each day.

There are many signs that an unprecedented economic recovery is not far behind. The economic indicators as I write this letter are truly extraordinary. The S&P 500 closed at a record high, topping the 4,000 level for the first time ever. The national jobs report crushed expectations, with more than 900,000 nonfarm jobs added in March, far beyond the 675,000 expected, leading to a record decline in unemployment from 14.8 percent in April 2020 to 6.0 percent today.

The federal government has delivered an enormous stimulus package, "The American Rescue Plan," that Senator Schumer projects will bring approximately $100 billion to New York State, including $6 billion in direct aid to New York City, $12 billion in direct aid to New York State, more than $40 billion in aid to small businesses and families, $7 billion for critical transportation infrastructure and billions more to support the rapid acceleration of the City's vaccination program. The long-term view from Washington is also very positive for New York over the next four years as the new administration's focus on infrastructure bodes well for the City, with major projects like the Gateway tunnel expected to gain momentum.

The State budget being finalized this month also opens the door to entirely new industries in the lucrative businesses of cannabis and mobile sports betting that will create more economic activity and further stimulate the rebound that we expect. On the tourism front, New York City is already seeing a significant uptick. 36 million visitors are expected this year, beginning the climb back to record levels achieved in 2019. NYC & Co. projects that local tourism will return to 2019 levels by next year, leisure travel by 2023, and that overall tourism will actually exceed 2019's record numbers by 2024.

When you put it all together—stimulus just now hitting the economy, jobs numbers rising dramatically, 3 to 4 consecutive months of growth, the City reopening in earnest, tourists returning, historically low interest rates—job creation could really ignite the economy and spark a recovery that is far faster than anyone predicted just months ago. In fact, the City of New York is now projecting that office-using jobs will return to pre-COVID levels by the end of this year, which would be truly remarkable given what we’ve endured over the past year.

So we welcome the year ahead cautiously but with great expectations. As I look out from our new headquarters at One Vanderbilt Avenue, I can't help but be so very proud of the manner in which SL Green contributed to keeping the wheels of the City turning during the worst of the pandemic, and the ways in which we contributed to help accelerate the safe and healthy return to the office workplace. 2020 wasn't the year that anyone expected or wished for, but as we told you last year when COVID-19 first appeared, SL Green is a company built to withstand difficult times and quickly pivot to seizing upon market opportunities. We have taken a highly visible leadership role throughout the pandemic, helping to ensure that our industry, tenants and City were able to withstand this crisis.

We are now coming out of this unprecedented period positioned to once again be at the forefront of helping the City move forward and reestablish the trajectory it was on prior to COVID. Our



portfolio remains well-occupied by industry-leading credit tenants. One Vanderbilt continues to fill and will host the year's most anticipated restaurant opening when Le Pavillon opens to the public on May 19. All of our major development projects, which never ceased during the lockdowns, are moving forward on schedule and on budget, and we eagerly anticipate the opening of Summit One Vanderbilt, a mind-blowing destination attraction like no other in the world, just as New York City roars back to life this fall!

With demand for elite New York investment assets still strong, borrowing rates at historic lows and the debt markets well positioned, we expect to be active in the market—disposing of mature assets, refinancing key aspects of our portfolio, continuing to buy back our undervalued stock, and developing iconic properties for the future. New York City is poised for a legendary comeback, and SL Green is positioned to greatly benefit from Manhattan’s revival.

## 2020: A Year for Leadership

Looking back at 2020, we are incredibly proud of the entire SL Green team and what we achieved together in the face of great uncertainty and disruption.

While others watched events unfold, we sprang into immediate action:

• For our tenants and essential workers

• For our employees

• For our investors

• And for our City

Our first priority was ensuring the health and safety of our people and buildings, which led to the creation and implementation of our SL Green Forward program. SL Green Forward established new operating procedures and protocols for our buildings, combined with infrastructure upgrades, to achieve highest possible levels of safety and wellness.

While office buildings may not be inherently essential, many of the businesses, organizations and agencies that work in our portfolio are critical to keeping this City running—medical offices, health care companies, visiting nurses, major media outlets and broadcast studios, and governmental agencies all have offices in our buildings. These tenants didn’t have the option of working from home; they were the people on the front line who needed assurances that they could operate in buildings that were open, operating, secure, serviced and free from COVID-19. I am proud to say that for these businesses and essential workers, SL Green never closed its doors.

The next order was taking care of our own—both our front-line building staff and our corporate employees. In that regard, at first we encouraged most of our employees to stay home, but after about 10 weeks, what we knew instinctively became apparent—we are at our best when we’re working together in our headquarters offices, collaborating, being together, maximizing productivity. So on June 15 we made the decision to bring all of our employees back, becoming one of, if not the first, company back to 100 percent work from office, a level we have been at ever since. For us, that set the stage for everything we went on to accomplish in 2020.

We recognized our responsibility to employees and their families to return to the office smartly and safely, and to address the unique hardships people had to deal with during this time. So we established a series of incentives to address the challenges of this pandemic in a 100 percent work from office environment. We provided discounted commuting, daily meals delivered to desks, subsidized in-home childcare and notably, the creation of a remote learning center for children of employees. Our extraordinary team responded, working overtime with a sense of purpose and urgency.
We then quickly turned our focus to supporting the City where we have built our entire business.

We started with our tenants who were hit the hardest by the pandemic. In a lot of respects, we were well-positioned for what happened in 2020—our portfolio is largely made up of big, well-capitalized, credit tenants on long-term leases, which by design puts us in a better place than other real estate sectors that are really feeling the brunt of the pandemic. However, there is a segment of our tenant portfolio that was traumatized, notably small businesses, small retailers and the restaurant industry.

So our objective was to try to maintain the status quo with tenants that could afford it, and work with those struggling tenants that couldn't to help them make it through these tough times. For our small retailers, we offered deferral and abatement deals to help them buy time toward recovery. For small businesses that were suffering, like many of the companies we house at Graybar, we tried to bring relief by exchanging free rent for short-term extensions. At the same time, we held the line with big, national retailers who could afford to meet their obligations yet sought to take advantage of the situation, litigating where necessary.

But we hatched our most creative idea with our long-time partner and friend, renowned Chef Daniel Boulud. In April we had a moment with Chef where it all came together—an opportunity to help the food industry, small businesses and food-insecure New Yorkers. That idea became FOOD1ST, a nonprofit foundation that has already provided over 600,000 free nutritious meals to frontline medical personnel, first responders, and the many food-insecure New Yorkers. The organization has helped many in the hard-hit restaurant industry reopen their kitchens and reemploy staff who had been laid off due to closures—the management, supervision, organization and logistics of which are managed entirely by SL Green at no charge.

Our biggest contribution to New York City this year may have been what we did with our balance sheet. At a time when activity was all but frozen, we weren’t just active in the market—we made the market.

We showed there was still domestic and global demand for investment sales with $2 billion of dispositions at very competitive pricing. We brought $1.75 billion of global capital to the City at One Madison. We took in new properties in the right circumstances, like the iconic Lipstick Building and 590 Fifth Avenue. And most importantly, we continued to invest in New York in ways that create long-term value for the Company and generate desperately needed, good-paying jobs for New Yorkers in the immediate term.

There is no greater example of this than the completion of One Vanderbilt on September 14—ahead of schedule and below budget. Just two weeks after the One Vanderbilt ribbon cutting, we were atop 185 Broadway for the on-time topping out of the project, which is the first new residential construction in downtown being built under the Affordable New York Housing Program. And just blocks away, SL Green commenced demolition of 15 Beekman Street for a fully-committed development project for Pace University.

We wrapped up the year by getting the One Vanderbilt band back together to celebrate the commencement of construction at One Madison Avenue in November. As One Vanderbilt comes to fruition, we will again be putting thousands of people to work in Midtown South, creating the single best building in what has been New York’s hottest office submarket.

All of our transactional activity was executed within the overlay of a $1 billion liquidity plan that we laid out in the spring, which has ensured our ongoing stability, reduced corporate indebtedness, increased cash reserves and enabled us to continue our share repurchase program at very attractive pricing levels.



No firm has done more to set a robust example for dedication to New York, dedication to small business, to people in need, to our employees, to our tenants and to our shareholders. SL Green worked through this pandemic to help keep essential parts of the City running, to create jobs and to support New Yorkers.

## Evolution of Office Demand Drivers

Now it’s time to look ahead.

After months of speculation about the future of office usage, as we turn the corner on the pandemic, we are seeing companies across industries recognize the need to get their employees back to the office to maximize productivity, enable mentoring and teambuilding, foster creativity and reinforce corporate culture. Amazon may have said it best: "Our plan is to return to an office-centric culture as our baseline. We believe it enables us to invent, collaborate, and learn together most effectively."

In a survey of 350 CEOs and human resources and finance leaders, 70 percent said they plan to have employees back in the office by fall of this year. A separate survey conducted by KPMG found that companies are rapidly backing away from plans to reduce office space; only 17 percent of CEOs surveyed in March said they planned to downsize, compared with 69 percent last August.

We have every reason to believe those numbers will continue to trend in the right direction as some of the biggest employers in the City and nation show leadership. Google has announced plans for the reopening of its offices this month and expects most employees back by September 1. Facebook will begin reopening in May, Bloomberg expects their employees to return as soon as they are vaccinated, and Wells Fargo is targeting September 6 as its back-to-office date. The public sector is headed in the same direction, with 80,000 New York City municipal workers coming back on May 3.

While certain employers will experiment with a Hybrid Workplace Model, giving employees the ability to work from home periodically, I believe this will be more limited in practice, especially over time. As businesses vie to compete to succeed in New York City, companies that work in purpose-built, efficient and fully amenitized space will foster a better workplace environment than those that experience culture and brand dilution through work from home.

When businesses come back to the office this year, though, there will be new preferences and trends that we believe will put SL Green at a significant advantage moving forward. In a post-COVID world, companies and workers will flock to space that combines some of the comfort of working from home with amenities only possible in an office environment. I expect the following features to be in high demand, all of which are prominent in our portfolio:

• A one-seat ride: Businesses will choose to locate in areas of the City that offer the most modes of “one-stop” commutation options to limit commute times. Midtown is perfectly situated, especially with the Long Island Rail Road making its debut at Grand Central Terminal as early as next year, offering even more one-seat options.

• State-of-the-art space: New construction and heavily redeveloped space will be the big winners as businesses stretch to provide employees with ultramodern work environments to recruit and retain talent.

• Healthy, safe and WELL environments: This item has moved to the top of the list for many companies post-COVID and is another area where new construction will thrive. Through substantial investment of capital, buildings can obtain high levels of air filtration, water quality, air and water monitoring and passive thermal imaging to promote employee health and give them more energy at work.

• Amenities not available at home: More than ever, companies will seek to provide their employees with forward-thinking amenities that provide a lifestyle enhancement and encourage collaboration not possible remotely. Large-format gathering spaces for town hall meetings, wired training centers, upscale food and beverage offerings, employee lounges, outdoor spaces and wellness centers will all be must-have items for returning workers.

• High-tech workplaces: Companies will demand access to redundant sources of high-speed and powerful networking to avoid the shortcomings of inferior, unreliable and inconsistent home networks.

• Flexible office space: SL Green is introducing Altus Suites to satisfy companies’ desire for flexible, fully furnished office space with high level of service and amenity in WELL buildings.

• A new approach to hospitality: SL Green started a Hospitality Division in 2020 in order to provide tenants with a level of service on par with 4-star hotels and fine restaurants to manage the needs of tenants and their employers outside of the traditional building management responsibilities.

From the beginning of the pandemic, we rejected the often hysterical claims about a remote work future. There is no substitute for the office environment, and the past year has only led to more innovation and creativity around what can be achieved in that space, which workers will enjoy when they return in the coming weeks and months. With CEOs rapidly making plans to bring workers back, and our portfolio now focused even more on premium, state-of-the-art Manhattan properties, I am more confident than ever that we are headed for a “snapback” recovery.

## The Year Ahead for SL Green

New York’s reopening is underway, and there are early signs of an unexpected early recovery beginning in the second half of this year. Within weeks, the majority of the population in New York will have been vaccinated, and COVID-19 will be on the retreat. Companies will begin returning to the office in time to help struggling restaurants, retailers and small businesses get back on their feet. Domestic visitors will define the local tourism business driven by Americans’ desire to travel, while Europe and other traditional summer destinations remain closed. Many of Manhattan’s hotels have set May and June as their reopening dates, and new projects like the Aman Hotel on 57th Street, the Ritz Carlton in Nomad, and the Hard Rock Hotel in Times Square, along with several others, will contribute an equal amount of new rooms to inventory to those permanently lost to COVID-related closures.

The multiplier effect of more than $100 billion of new, local stimulus, and continued low interest rates will have an uplifting effect on New York’s economy and accelerate job re-creation predicted to get back to pre-pandemic levels in 2022. This economic climate will set the stage for SL Green’s outperformance against its peers, as our market-leading approach to continuous investment and divestment generates strong capital gains and excess proceeds to repurchase stock and retire company indebtedness.

For us, the future is about world-class new development, and it all starts with our new home, One Vanderbilt Avenue, which we moved into in March of this year. Throughout the pandemic, we continued to



sign new leases at One Vanderbilt—eight of them to be exact—as industry-leading companies embraced the compelling attributes of this extraordinary building, location, design and amenities. We have now reached nearly 75 percent leased, while we trade paper on another 225,000 square feet of potential deals which, if signed as anticipated, would bring our leased occupancy to nearly 90 percent. The momentum at One Vanderbilt will continue throughout the year, with a significant refinancing expected this summer that will repatriate substantially all of our equity in this asset with expected proceeds of up to $1.0 billion in excess of our original underwriting. We have already executed $2.25 billion of 10-year fixed rate forward swaps in anticipation of a second quarter refinancing in excess of the swapped amount. The substantial completion of the leasing of One Vanderbilt, along with the expected closing of one of the largest single-asset office financings in history, will cap off this enormously successful investment for SL Green and illuminate the extraordinary value creation that took place from the ground up.

The demand for well-located, beautifully designed and highly amenitized new construction is clear and gravity-defying. This same formula will apply equally to One Madison Avenue, where we commenced construction during a ceremony held on a crisp autumn morning in Madison Square Park and attended by the mayor, other elected officials and civic leaders. Through smart planning, value engineering and good timing, we achieved a remarkable $65 million of cost savings relative to budget as contractors looked to secure future work during 2022–2023, when construction is expected to ebb citywide. I’m pleased to report that we are seeing intense early interest in the first true new office construction in Midtown South in a decade. One Madison represents exactly what companies are looking for post-COVID, a state-of-the-art building that prioritizes wellness located right on one of the City’s premier open spaces, Madison Square Park. Best of all, this asset will come on line at a time when we expect demand to be strong and with little comparable competition.

Another well-timed project, 185 Broadway, will make its debut this summer, beginning residential leasing in July just as we anticipate the multi-family market to be recovering and hitting its stride as people flock back into downtown. Net effective median apartment rent has begun to show month-to-month stability in 2021 as this March exhibited the highest number of new lease signings since tracking began in 2008. We are proud to be delivering a stylish and amenitized new residential project under the Affordable New York Housing Program containing 30 percent affordable rental units for working families. Also in Lower Manhattan, we commenced our third project with Pace University for new dorms, classrooms, a library and a learning center. The project, located at 15 Beekman Street, is fully capitalized with debt and joint venture equity, and demolition is well underway.

We are also in a great position this year at 760 Madison Avenue, where we are partnered with Giorgio Armani on a truly special and unique boutique condo and retail project. With Landmarks approval in hand, demolition of the existing buildings that occupy the site is underway and we are on track to begin marketing condo units in late 2022 or early 2023, with the historic Madison Avenue neighborhood luxury buyer already returning to the market and looking to smaller, boutique condo projects like this one in a post-COVID era. The broader residential condo market in New York City is already rebounding as new sale contracts were at near-record levels in all five boroughs, indicating that people are returning to the City and taking advantage of price concessions. We have an incredible partner in Giorgio Armani whose 15-year extended commitment to their flagship location will serve as an anchor for Madison Avenue's retail recovery and reinvigoration.
Perhaps our most exciting milestone of the upcoming year will take place at the top of One Vanderbilt when we open Summit One Vanderbilt. While we gave a sneak peek of the Summit at our Investor Conference in December, the fully completed cultural destination will change the way people experience the City and the environment in an immersive experience that we believe will achieve global prominence. Summit One Vanderbilt will be opening to the public right after the summer and offer visitors the opportunity to escape the constraints of lockdown and be among the first to visit this multi-sensorial attraction that will rise right to the top of the most desired and visited sites in Manhattan when it opens.

With all of this activity and pipeline of opportunity, we remain an undervalued company, notwithstanding our strong stock performance year-to-date. At times in 2020, the disconnect was extreme, trading at lows of $35 per share. While our share price has recovered significantly from the depths of the pandemic, there remains a significant delta to our estimate of net asset value. What we've done in response is unprecedented within our industry, completing nearly $2.9 billion of share buybacks and OP unit redemptions. Nobody in the REIT space has accomplished anything of that magnitude. We intend to continue this program so long as we believe our stock remains undervalued.

In that regard, we expect to have significant opportunities for two important reasons: there continues to be a global appetite for high-quality Manhattan assets, and the debt markets remain favorable at historically low rates. In 2020, our investment activity accounted for a sizable amount of all deals transacted in Manhattan, and our accomplishments proved the lasting value of desirable Manhattan commercial real estate assets, with transactions at competitive pricing on 410 Tenth Avenue, 609 Fifth Avenue, The Olivia and many others.

Fueling this activity is a robust debt market that is searching for yield on quality assets. In a business like ours, where more than half of the capital of every asset is provided by a lender, the abundant availability and low price of debt capital is a stabilizing force in the Manhattan real estate market and makes us very optimistic for the execution of our business plan in 2021. Right now, lenders are competing for mortgages by keeping spreads low for 10-year fixed rate product and supporting asset values. Look for SL Green to be a very active player in this market in 2021.

## Closing

2020 was a year like no other. We are grateful for your steadfast support in a time of great uncertainty, and hope that you share our pride in the leadership and commitment this entire team showed in 2020.

Where we sit today is proof positive that our strategy is working and will continue to work as the Company becomes leaner, more focused, better capitalized and represented by only the finest assets in the City. We’re going to keep pushing and performing to the best of our abilities, and accordingly, the SL Green you know will continue to outperform our peers and competitors within this market and produce the most we can for shareholders.

On behalf of myself, Andrew Mathias, our leadership team and the entire SL Green family who came together in a time of uncertainty, thank you for standing with us and sharing our belief in this Company and New York, the greatest City in the world.



Marc Holliday
Chairman & Chief Executive Officer



## New York City
stopped.
We didn't.






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One
Vanderbilt

Opening One Vanderbilt in September 2020 was a monumental achievement for SL Green and a declaration that New York City is ready to reopen. Delivering Midtown's newest, skyline-defining tower ahead of schedule, under budget and approximately 70% leased, despite the pandemic, sent a clear signal that the future of New York City is bright.

One Vanderbilt proves that—regardless of the business cycle—premium, perfectly located properties are the choice for the world’s leading finance, banking, law and real estate firms.

The 1,401-foot One Vanderbilt is also testament to what a public-private partnership can achieve, which will be on full display as New Yorkers enjoy an improved Grand Central Terminal and brand-new public plaza.

09.2001

SITE ASSEMBLAGE COMMENCED
(ACQUIRED 317 MADISON AVENUE)

11.2011

SITE FULLY ASSEMBLED
(ACQUIRED 51 E 42 STREET)

05.2015

SPECIAL PERMIT AWARDED

09.2020

RIBBON CUTTING



## "This is the most
tangible sign of the
rebirth of NYC."

MAYOR BILL DE BLASIO, ONE VANDERBILT, RIBBON CUTTING











One
Madison

Together with the National Pension Service of Korea, Hines, Kohn Pedersen Fox and AECOM Tishman — the same design and development team that delivered One Vanderbilt—we celebrated the commencement of our project at One Madison Avenue in November 2020.

The new 27-story, 1.4 million-square-foot adaptive reuse development, featuring cutting-edge infrastructure, a best-in-class healthy work environment and forward-thinking amenity program, will dramatically transform the Midtown South trophy into a dynamic, inspiring workplace for the 21st century.

On that same day, SL Green announced the closing of a $1.25 billion construction facility, led by leading global financial institutions, that will fully fund the project on a go-forward basis — further confirming the belief that New York City’s future is great.

27

STORIES

11.20

COMMENCEMENT

1.4M \( ^{SQ} \)  FT

DEVELOPMENT

$2.3B

PROJECT COST

11.23

PROJECTED
COMPLETION

$250K

DONATION TO
MADISON SQUARE PARK



"One Madison will have a dramatic and positive impact on its neighborhood that will infuse a time-less New York City property with a dynamic, inspiring workplace for the 21st century."

DOUGLAS HOCKING, AIA, KPF DESIGN PRINCIPAL











185
Broadway

The topping off of 185 Broadway in September 2020 represented a major milestone for Lower Manhattan and a continuation of SL Green’s presence in the neighborhood. Once completed, the 34-story mixed-use building will be the area’s first development to be built under the Affordable New York Housing Program, with 30% of units designated affordable, while creating 600 jobs.

Located directly across from the Fulton Transit Center, the 260,000-square-foot building is designed by renowned firm FXCollaborative and will feature a suite of amenities that are unrivaled in downtown Manhattan.

209

RESIDENTIAL UNITS

41K \( ^{SQ} \)  FT

COMMERCIAL/
MEDICAL OFFICE

30%

AFFORDABLE UNITS

10K \( ^{SQ} \)  FT

FLAGSHIP RETAIL

"185 Broadway enables us to bring essential affordable housing to the neighborhood through the Affordable New York Program."

EDWARD V. PICCINICH, CHIEF OPERATING OFFICER



760
Madison

SL Green’s partnership with The Armani Group at 760 Madison Avenue represents the essence of Armani lifestyle brands—Armani/Casa, Armani Ristorante, and luxury residences designed by Giorgio Armani.

The redesign by the renowned New York architecture firm, COOKFOX, reflects the evolution of the Armani brand and will revitalize one of the world’s most recognized retail corridors with a new flagship Giorgio Armani retail boutique.

15
Beekman

Marking SL Green’s third partnership with Pace University, 15 Beekman is a new, fully committed 220,000-square-foot residence hall featuring a modern dining facility, state-of-the-art library and learning center, as well as new classrooms, and academic and common spaces. 15 Beekman continues Pace’s Master Plan to revitalize its Lower Manhattan campus and SL Green’s continued dedication to the University and its students.

18 | SL GREEN ANNUAL REPORT 2020

15 YEARS

GIORGIO ARMANI'S
COMMITMENT TO
MADISON AVENUE

58K \( ^{*} \)  SQ FT

DEVELOPMENT

100%

COMMITTED TO
PACE UNIVERSITY

220K \( ^{*} \)  SQ FT

DEVELOPMENT

13

EXCLUSIVE RESIDENTIAL
UNITS

04.24

PROJECTED
COMPLETION

424

STUDENT BEDS

08.23

PROJECTED
COMPLETION















Food1st

In April 2020, in response to the COVID-19 pandemic, SL Green launched a new 501(c)3 nonprofit initiative, Food1st, with a $1 million initial contribution. World-renowned Chef Daniel Boulud served as the foundation’s inaugural partner, delivering meals to first responders and food-insecure New Yorkers.

Food1st was founded with a dual mission: to address increasing demand for food assistance, while also helping to revitalize New York City’s food and beverage industry by reactivating restaurant kitchens and bringing restaurant staff safely back to work. Over the course of its first year, the Foundation has raised nearly $5 million, and its work has helped countless people through a uniquely challenging time.

FOOD1ST

600,000+

MEALS SERVED TO DATE

30

300+

KITCHEN
PARTICIPANTS

RESTAURANT STAFF
EMPLOYED

165

LOCATIONS SERVED



"The restaurant industry has been hit hard, but we still have the facilities, ability and desire to safely provide quality, nourishing meals to essential workers and those most in need."

CHEF DANIEL BOULUD











## SLG
Forward

Shortly after the pandemic began, in April 2020, SL Green launched SLG Forward—an innovative set of safety, cleanliness and wellness programs that showed New York that it was safe to work from the office.

By implementing new infra-
structure and protocols for
tenants, including passive
thermal screening, touchless
fixtures and industry-leading
air filtration, in addition to
extensive building employee
trainings to ensure that best
practices were followed, all of
our buildings remained open
and safe for use by essential
tenants throughout 2020.

Then, in March 2021, SL Green announced the launch of the first portfolio-wide COVID testing initiative in New York City, identifying 21 locations—covering more than 200,000 square feet—for use as temporary testing centers. Working in partnership with New York State and City, we are at the forefront of instilling confidence in New Yorkers to return to the office and ensuring all of our buildings open safely for employees.

100%

SLG BUILDINGS REMAINED OPEN THROUGHOUT
THE PANDEMIC FOR ESSENTIAL BUSINESSES

25

375

PASSIVE THERMAL
IMAGERS FITTED
IN LOBBIES

21

AIR PURIFICATION
UNITS INSTALLED

800+

COVID TESTING
LOCATIONS

TENANTS SERVED BY
SLG TESTING SITES



Returning
Safely

SL Green was one of the first major New York City companies to bring 100% of its employees back to the office, starting in June 2020. An industry-leading set of incentives and amenities met employees to ensure that their return to the office was as safe, seamless and comfortable as possible.

In October, The New York Times profiled our approach, highlighting new benefits like individually prepared lunches, subsidized parking and in-home child care for our employees. One of our most popular and creative offerings was the introduction of educational pods that allowed employees to return to the office while their children benefited from world-class tutoring just one floor away.

1 ST

NYC COMPANY TO RETURN TO
100% WORK FROM OFFICE

06.15.20 100%

REOPENED OFFICE
TO EMPLOYEES
SUBSIDIZED ONSITE
TUTORING PROGRAM

"SL Green is one of the most prominent examples of what some companies will do to bring people back."

THE NEW YORK TIMES, OCTOBER 30, 2020











2020
Highlights \( ^{(1)} \) 

In an unprecedented year,
SL Green successfully imple-
mented an aggressive strategy
to protect its balance sheet,
while continuing its value accre-
tive share buyback program.

The Company responded to the uncertainty of the pandemic with “The $1 Billion Plan” in April 2020, designed to increase the Company’s cash on hand to over $1 billion and provide the confidence to continue pursuing strategic goals. In furtherance of this plan, SL Green led the NYC transaction market in 2020, with asset sales totaling $2.0 billion, including dispositions of the The Olivia, 609 Fifth Avenue and 410 Tenth Avenue—the largest commercial property sale in the United States since March 2020.

Utilizing the liquidity from these transactions, the Company was able to repurchase $559.5 million of stock and units in 2020—bringing the buyback program to nearly $2.8 billion of repurchases since 2017. Shareholders were also rewarded with an ordinary dividend that was increased by 2.8% and a special dividend of $1.70 per share.

$2.0B \( ^{(2)} \) 

DISPOSITIONS

$455.2M

FUNDS AVAILABLE
FOR DISTRIBUTION

$1.70

PER SHARE
SPECIAL DIVIDEND

$559.5M

SHARES/UNITS
REPURCHASED IN 2020

2.8%

INCREASE IN
ORDINARY DIVIDEND

1.25M \( ^{SQ} \)  FT

MANHATTAN OFFICE
LEASING

(1) All data as of 12/31/20.
(2) Includes consolidated cash, marketable securities and undrawn capacity on the Company’s unsecured revolving credit facility; excludes SLG share of unconsolidated JV cash and cash equivalents.



By New
Yorkers
For New
Yorkers

SL Green’s unwavering faith in the future of New York helped deliver thousands of jobs and vital economic activity in 2020—when the city needed it most.

We safely pushed ahead on our construction projects, kept all of our buildings open and accessible, and led the way in having our entire team working from the office beginning in June.

The City’s success is our success and we’re doing everything possible to support our tenants and their employees as New York City springs back to life.

100%

COMMITTED TO
REOPENING
NEW YORK CITY

100%

WORK FROM OFFICE

100%

INVESTED IN
NEW YORK CITY

100%

UNION LABOR AT OVA

"We remain focused on boosting the economy, creating thousands of construction jobs and creating best-in-class offices that meet the demands of today's top companies and talent."

ANDREW MATHIAS, PRESIDENT



## AL HQ FOR
T CENTURY














## SL Green Portfolio

<table><tr><td>Map Properties
Key (As of December 31, 2020)</td><td>Ownership
Interest (%)</td><td>Submarket</td><td>Ownership</td><td>Usable Square Feet</td><td>Occupancy (%)</td></tr><tr><td colspan="6">OFFICE PROPERTIES</td></tr><tr><td>1</td><td>2 Herald Square</td><td>51.0</td><td>Herald Square</td><td>Leasehold Interest</td><td>369,000</td></tr><tr><td>2</td><td>10 East 53rd Street</td><td>55.0</td><td>Plaza District</td><td>Fee Interest</td><td>354,300</td></tr><tr><td>3</td><td>55 West 46th Street—Tower 46</td><td>25.0</td><td>Midtown</td><td>Fee Interest</td><td>347,000</td></tr><tr><td>4</td><td>100 Church Street</td><td>100.0</td><td>Downtown</td><td>Fee Interest</td><td>1,047,500</td></tr><tr><td>5</td><td>100 Park Avenue</td><td>50.0</td><td>Grand Central South</td><td>Fee Interest</td><td>834,000</td></tr><tr><td>6</td><td>11 Madison Avenue</td><td>60.0</td><td>Park Avenue South</td><td>Fee Interest</td><td>2,314,000</td></tr><tr><td>7</td><td>110 East 42nd Street</td><td>100.0</td><td>Grand Central</td><td>Fee Interest</td><td>215,400</td></tr><tr><td>8</td><td>110 Greene Street</td><td>100.0</td><td>Soho</td><td>Fee Interest</td><td>223,600</td></tr><tr><td>9</td><td>125 Park Avenue</td><td>100.0</td><td>Grand Central</td><td>Fee Interest</td><td>604,245</td></tr><tr><td>10</td><td>220 East 42nd Street</td><td>100.0</td><td>Grand Central</td><td>Fee Interest</td><td>1,135,000</td></tr><tr><td>11</td><td>280 Park Avenue</td><td>50.0</td><td>Park Avenue</td><td>Fee Interest</td><td>1,219,158</td></tr><tr><td>12</td><td>304 Park Avenue South</td><td>100.0</td><td>Midtown South</td><td>Fee Interest</td><td>215,000</td></tr><tr><td>13</td><td>420 Lexington Ave (Graybar)</td><td>100.0</td><td>Grand Central North</td><td>Leasehold Interest</td><td>1,188,000</td></tr><tr><td>14</td><td>461 Fifth Avenue</td><td>100.0</td><td>Midtown</td><td>Leasehold Interest \( ^{(1)} \)</td><td>200,000</td></tr><tr><td>15</td><td>485 Lexington Avenue</td><td>100.0</td><td>Grand Central North</td><td>Fee Interest</td><td>921,000</td></tr><tr><td>16</td><td>555 West 57th Street</td><td>100.0</td><td>Midtown West</td><td>Fee Interest</td><td>941,000</td></tr><tr><td>17</td><td>590 Fifth Avenue</td><td>100.0</td><td>Midtown</td><td>Fee Interest</td><td>103,300</td></tr><tr><td>18</td><td>635 Sixth Avenue</td><td>100.0</td><td>Midtown South</td><td>Fee Interest</td><td>104,000</td></tr><tr><td>19</td><td>641 Sixth Avenue</td><td>100.0</td><td>Midtown South</td><td>Fee Interest</td><td>163,000</td></tr><tr><td>20</td><td>711 Third Avenue</td><td>100.0 \( ^{(2)} \)</td><td>Grand Central North</td><td>Leasehold Interest \( ^{(2)} \)</td><td>524,000</td></tr><tr><td>21</td><td>750 Third Avenue</td><td>100.0</td><td>Grand Central North</td><td>Fee Interest</td><td>780,000</td></tr><tr><td>22</td><td>800 Third Avenue</td><td>60.5</td><td>Grand Central North</td><td>Fee Interest</td><td>526,000</td></tr><tr><td>23</td><td>810 Seventh Avenue</td><td>100.0</td><td>Times Square</td><td>Fee Interest</td><td>692,000</td></tr><tr><td>24</td><td>885 Third Avenue</td><td>100.0</td><td>Midtown/Plaza District</td><td>Fee/Leasehold Interest</td><td>625,300</td></tr><tr><td>25</td><td>919 Third Avenue</td><td>51.0</td><td>Grand Central North</td><td>Fee Interest</td><td>1,454,000</td></tr><tr><td>26</td><td>1185 Avenue of the Americas</td><td>100.0</td><td>Rockefeller Center</td><td>Leasehold Interest</td><td>1,062,000</td></tr><tr><td>27</td><td>1350 Avenue of the Americas</td><td>100.0</td><td>Rockefeller Center</td><td>Fee Interest</td><td>562,000</td></tr><tr><td>28</td><td>1515 Broadway</td><td>57.0</td><td>Times Square</td><td>Fee Interest</td><td>1,750,000</td></tr><tr><td>29</td><td>Worldwide Plaza</td><td>24.35</td><td>Westside</td><td>Fee Interest</td><td>2,048,725</td></tr><tr><td colspan="6">SUBTOTAL</td></tr><tr><td colspan="6">RETAIL PROPERTIES</td></tr><tr><td>30</td><td>11 West 34th Street</td><td>30.0</td><td>Herald Square/Penn Station</td><td>Fee Interest</td><td>17,150</td></tr><tr><td>31</td><td>21 East 66th Street</td><td>32.3</td><td>Plaza District</td><td>Fee Interest</td><td>13,069</td></tr><tr><td>32</td><td>85 Fifth Avenue</td><td>36.27</td><td>Midtown South</td><td>Fee Interest</td><td>12,946</td></tr><tr><td>33</td><td>115 Spring Street</td><td>51.0</td><td>Soho</td><td>Fee Interest</td><td>5,218</td></tr><tr><td>34</td><td>121 Greene Street</td><td>50.0</td><td>Soho</td><td>Fee Interest</td><td>7,131</td></tr><tr><td>35</td><td>133 Greene Street</td><td>100.0</td><td>Soho</td><td>Fee Interest</td><td>6,425</td></tr><tr><td>36</td><td>650 Fifth Avenue</td><td>50.0</td><td>Plaza District</td><td>Leasehold Interest</td><td>69,214</td></tr><tr><td>37</td><td>712 Madison Avenue</td><td>100.0</td><td>Plaza District</td><td>Fee Interest</td><td>6,600</td></tr><tr><td>38</td><td>717 Fifth Avenue</td><td>10.9</td><td>Midtown/Plaza District</td><td>Fee Interest</td><td>119,550</td></tr><tr><td>39</td><td>719 Seventh Avenue</td><td>75.0</td><td>Times Square</td><td>Fee Interest</td><td>10,040</td></tr><tr><td>40</td><td>760 Madison Avenue</td><td>100.0</td><td>Plaza District</td><td>Fee Interest</td><td>21,124</td></tr><tr><td>41</td><td>1552-1560 Broadway</td><td>50.0</td><td>Times Square</td><td>Fee Interest</td><td>57,718</td></tr><tr><td colspan="6">SUBTOTAL</td></tr><tr><td colspan="6">DEVELOPMENT / REDEVELOPMENT</td></tr><tr><td>42</td><td>19-21 East 65th Street</td><td>100.0</td><td>Plaza District</td><td>Fee Interest</td><td>23,610</td></tr><tr><td>43</td><td>106 Spring Street</td><td>100.0</td><td>Soho</td><td>Fee Interest</td><td>5,928</td></tr><tr><td>44</td><td>609 Fifth Avenue</td><td>100.0</td><td>Rockefeller Center</td><td>Fee Interest</td><td>138,563</td></tr><tr><td>45</td><td>625 Madison Avenue</td><td>100.0</td><td>Plaza District</td><td>Leasehold Interest</td><td>563,000</td></tr><tr><td>46</td><td>707 Eleventh Avenue</td><td>100.0</td><td>Midtown West</td><td>Fee Interest</td><td>159,720</td></tr><tr><td>47</td><td>762 Madison Avenue</td><td>100.0</td><td>Plaza District</td><td>Fee Interest</td><td>6,109</td></tr><tr><td colspan="6">SUBTOTAL</td></tr><tr><td colspan="6">CONSTRUCTION IN PROGRESS</td></tr><tr><td>48</td><td>One Vanderbilt</td><td>71.0</td><td>Grand Central</td><td>Fee Interest</td><td>1,657,198</td></tr><tr><td>49</td><td>185 Broadway</td><td>100.0</td><td>Lower Manhattan</td><td>Fee Interest</td><td>198,488</td></tr><tr><td>50</td><td>15 Beekman</td><td>20.0</td><td>Lower Manhattan</td><td>Leasehold Interest</td><td>221,884</td></tr><tr><td>51</td><td>One Madison Avenue</td><td>50.5</td><td>Park Avenue South</td><td>Fee Interest</td><td>1,048,700</td></tr><tr><td colspan="6">SUBTOTAL</td></tr><tr><td colspan="6">RESIDENTIAL PROPERTIES</td></tr><tr><td>52</td><td>400 East 57th Street</td><td>41.0</td><td>Upper East Side</td><td>Fee Interest</td><td>290,482</td></tr><tr><td>*</td><td>1080 Amsterdam</td><td>92.5</td><td>Upper West Side</td><td>Leasehold Interest</td><td>82,250</td></tr><tr><td>53</td><td>Stonehenge Portfolio</td><td>Various</td><td></td><td>Fee Interest</td><td>445,934</td></tr><tr><td>54</td><td>605 West 42nd Street—Sky</td><td>20.0</td><td>Westside</td><td>Fee Interest</td><td>927,358</td></tr><tr><td colspan="6">SUBTOTAL</td></tr><tr><td colspan="6">NEW YORK CITY GRAND TOTAL</td></tr><tr><td colspan="6">SUBERBAN PORTFOLIO</td></tr><tr><td>*</td><td>Landmark Square</td><td>100.0</td><td>Stamford, Connecticut</td><td>Fee Interest</td><td>862,800</td></tr><tr><td colspan="6">SUBERBAN GRAND TOTAL</td></tr><tr><td colspan="6">TOTAL PORTFOLIO</td></tr></table>

(1) The Company has an option to acquire the fee interest for a fixed price on a specific date.

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

34 | SL GREEN ANNUAL REPORT 2020

* Properties not shown on map.



# MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

## Overview

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

The COVID-19 pandemic has caused, and continues to cause, severe disruptions with wide ranging impacts to the global economy and everyday life. We expect that our business, results of operations, liquidity, cash flows, prospects, and our ability to achieve forward-looking targets and expectations could be materially and adversely affected for at least the duration of the COVID-19 pandemic and likely longer. This could also cause significant volatility in the trading prices of our securities. The extent of the impact of the COVID-19 pandemic will depend on future developments, including the duration, severity and spread of the pandemic, health and safety actions taken to contain its spread and how quickly and to what extent normal economic and operating conditions can resume. Additionally, the COVID-19 pandemic could increase the magnitude of many of the other risks described in this Annual Report on Form 10-K and our other SEC filings and may have other adverse effects on our operations that we are not currently able to predict.

The scale and magnitude of adverse impacts could depend on, among other factors:

• the financial condition of our tenants and their ability or willingness to pay rent in full on a timely basis;

• the impact on rents and demand for office and retail space;

• the extent to which work-from-home policies continue subsequent to the easing of pandemic-related restrictions;

• the impact of new regulations or norms on physical space needs and expectations;

- the financial condition of the borrowers and sponsors of our debt and preferred equity investments and their ability or willingness to make interest and principal payments;

• the effectiveness of governmental measures aimed at slowing and containing the spread;

• the effect of changes in laws and regulation;

• the extent and terms associated with governmental relief programs;

• the ability of debt and equity markets to function and provide liquidity; and

- the ability to mitigate delays or cost increases associated with building materials or construction services necessary for development, redevelopment and tenant improvements

The following discussion related to our consolidated financial statements should be read in conjunction with the financial statements appearing in Item 8 of this Annual Report on Form 10-K. A discussion of our results of operations for the year ended December 31, 2019 compared to the year ended year ended December 31, 2018 is included in Part II, Item 7 Management's Discussion and Analysis of Financial Condition and Results of Operations of our Annual Report on Form 10-K for the year ended December 31, 2019, filed with the SEC on February 28, 2020, and is incorporated by reference into this Annual Report on Form 10-K.

## Leasing and Operating

At December 31, 2020, our same-store Manhattan office property occupancy inclusive of leases signed but not commenced, was 93.4% compared to 96.2% at December 31, 2019. We signed office leases in Manhattan encompassing approximately 1.2 million square feet, of which approximately 0.9 million square feet represented office leases that replaced previously occupied space. Our mark-to-market on the signed Manhattan office leases that replaced previously occupied space was (3.6)% for 2020.

According to Cushman & Wakefield, leasing activity in Manhattan in 2020 totaled approximately 12.8 million square feet. Of the total 2020 leasing activity in Manhattan, the Midtown submarket accounted for approximately 8.9 million square feet, or approximately 69.5%. Manhattan's overall office vacancy went from 11.1% at December 31, 2019 to 15.2% at December 31, 2020. Overall average asking rents in Manhattan decreased in 2020 by 0.3% from $73.41 per square foot at



December 31, 2019 to $73.16 per square foot at December 31, 2020, while Manhattan Class A asking rents increased to $80.18 per square foot, up 0.5% from $79.82 at December 31, 2019.

## Acquisition and Disposition Activity

Overall Manhattan sales volume decreased by 61.0% in 2020 to $13.0 billion as compared to $29.4 billion in 2019. However, we continued to take advantage of significant interest by both international and domestic institutions and individuals seeking ownership interests in Manhattan properties to sell assets, disposing of a significant volume of properties that were considered non-core or had a more limited growth trajectory, raising efficiently priced capital that was used primarily for share repurchases and debt reduction. During the year, we closed on the sales of all or a portion of our interests in 30 East 40th Street, 1055 Washington Boulevard, Williamsburg Terrace, 410 Tenth Avenue, 333 East 22nd Street, 400 East 58th Street, the retail condominium at 609 Fifth Avenue, and 315 West 33rd Street - "The Olivia" for total gross valuations of $1.7 billion.

## Debt and Preferred Equity

In 2019 and 2020, in our debt and preferred equity portfolio we continued to focus on the origination of financings for owners, acquirers or developers of properties in New York City, while selectively selling certain investments, the proceeds of which were utilized to repurchase shares of common stock or for debt repayment. This investment strategy provides us with the opportunity to fill a need for additional debt financing, while achieving attractive risk adjusted returns to us on the investments and receiving a significant amount of additional information on the New York City real estate market. The typical investments made by us during 2019 and 2020 were to reputable owners or acquirers which have sizable equity subordinate to our last dollar of exposure. During 2020, our debt and preferred equity activities included purchases and originations, inclusive of advances under future funding obligations, discount and fee amortization, and paid-in-kind interest, net of premium amortization, of $0.6 billion, and sales, redemption and participations of $1.0 billion.

For descriptions of significant activities in 2020, refer to "Part I, Item 1. Business - Highlights from 2020."

## Highlights from 2020

Our significant achievements from 2020 included:

## Corporate

- Declared a special dividend paid primarily in stock and authorized a reverse stock split to mitigate the dilutive impact of the special dividend with a ratio of 1.02918-for-1. These transactions were completed in January 2021. All share-related references and measurements in this report including the number of shares outstanding, share prices, number of shares repurchased, earnings per share, dividends per share, and share-based compensation awards, have been retroactively adjusted to reflect the reverse stock split for all periods presented in this Annual Report.

- Repurchased 8.5 million shares of our common stock under our share repurchase program at an average price of $58.90 per share and increased the size of our share repurchase program by $500 million to $3.5 billion. From program inception through December 31, 2020, we have repurchased a cumulative total of 31.5 million shares of our common stock under the program at an average price of $88.39 per share.

## Leasing

- Signed 125 Manhattan office leases covering approximately 1.2 million square feet. The mark-to-market on signed Manhattan office leases was 3.6% lower in 2020 than the previously fully escalated rents on the same spaces.

- Reached 73% leased at One Vanderbilt Avenue as of January 2021 after signing new leases with Walker & Dunlop, LLC; Heidrick & Struggles, International; I Life Healthcare, Inc. d/b/a One Medical; Hodges Ward Elliot; InTandem Capital Partners; Sagewind Capital LLC; and a financial services firm; as well as a lease expansion with Oak Hill Advisors.

• Signed a lease renewal with Travelers Indemnity Company for 133,479 square feet at 485 Lexington Avenue.

## Acquisitions

• Closed on the acquisition of 707 Eleventh Avenue for a gross purchase price of $90.0 million.

- Entered into a 99-year ground lease of 15 Beekman and completed the capitalization of a 100% pre-committed development for Pace University by entering into a partnership with a real estate fund managed by Meritz Alternative Investment Management, which holds an 80% interest in the joint venture, and closing on a $125.0 million construction facility. The Company retained a 20% interest in the joint venture and oversight of the development.



- Took possession of 590 Fifth Avenue at a gross asset valuation of $107.2 million. This property previously served as collateral for a debt and preferred equity investment and was acquired through a negotiated transaction with the sponsor of the investment

## Dispositions

• Together with our partners, closed on the sale of 410 Tenth Avenue for gross consideration of $952.5 million.

• Closed on the sale of two retail condominiums in Williamsburg, Brooklyn, for a gross sales price of $32.0 million.

• Closed on the sale of 1055 Washington Boulevard in Stamford, Connecticut, for a gross sales price of $23.8 million.

• Closed on the sale of 1010 Washington Boulevard in Stamford, Connecticut, for a gross sales price of $23.1 million.

• Together with our partner, closed on the sale of 400 East 58th Street for a gross sales price of $62.0 million.

- Closed on the sale of a 49.5% interest in One Madison Avenue to the National Pension Service of Korea and Hines Interest LP. These partners have committed aggregate equity to the project totaling no less than $492.2 million. The Company and Hines Interest LP will co-develop the $2.3 billion project, which will span 1.4 million rentable square feet upon completion.

• Closed on the sale of the retail condominium at 609 Fifth Avenue for a gross sales price of $168.0 million.

- Closed on the sale of 315 West 33rd Street, known as The Olivia, and an adjacent undeveloped parcel of land, for a sale price of $446.5 million. The transaction included a $100 million preferred equity investment by the Company.

## Debt and Preferred Equity Investments

- Originated and retained, or acquired, $0.6 billion in debt and preferred equity investments, inclusive of advances under future funding obligations, discount and fee amortization, and paid-in-kind interest, net of premium amortization, and recorded $1.0 billion of proceeds from sales, repayments and participations.

## Finance

- Together with our joint venture partners, closed on a new $1.25 billion construction facility for One Madison Avenue. The facility has a term of up to 6 years and bears interest at a floating rate of 3.35% over LIBOR, with the ability to reduce the spread to as low as 2.50% upon achieving certain pre-leasing and completion milestones.

- Together with our joint venture partner, closed on the early refinancing of 100 Park Avenue. The new $360.0 million mortgage has a term of up to 5 years and bears interest at a floating rate of 2.25% over LIBOR.

- Together with our partners, closed on a new $600.0 million construction facility for 410 Tenth Avenue, replacing the previous $465.0 million construction facility that was put in place in 2019. The Company and its partners subsequently closed on the sale of this property for gross consideration of $952.5 million.

- Closed on a $510.0 million mortgage financing of 220 East 42nd Street, also known as the New Building. The new mortgage has a 3-year term, with two one-year extension options and bears interest at a floating rate of 2.75% per annum over LIBOR.

- Together with our partner, closed on the refinancing of 10 East 53rd Street. The new $220.0 million mortgage replaces the previous $170.0 million mortgage, has a 5-year term, and bears interest at a floating rate of 1.35% over LIBOR.

As of December 31, 2020, we owned the following interests in properties in the New York metropolitan area, primarily in midtown Manhattan. Our investments located outside of Manhattan are referred to as the Suburban properties:



<table><tr><td></td><td></td><td colspan="2">Consolidated</td><td colspan="2">Unconsolidated</td><td colspan="3">Total</td></tr><tr><td></td><td></td><td>Number of Properties</td><td>Approximate Square Feet</td><td>Number of Properties</td><td>Approximate Square Feet</td><td>Number of Properties</td><td>Approx</td><td>Weighted Average Occupancy(1)</td></tr><tr><td>Location</td><td>Property Type</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Commercial:</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td rowspan="4">Manhattan</td><td>Office</td><td>18</td><td>10,681,045</td><td>11</td><td>11,841,483</td><td>29</td><td>22,522,528</td><td>92.4%</td></tr><tr><td>Retail</td><td>4</td><td>44,189</td><td>9</td><td>301,996</td><td>13</td><td>346,185</td><td>94.2%</td></tr><tr><td>Development/</td><td>(1)</td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Redevelopment</td><td>8</td><td>1,095,418</td><td>3</td><td>2,927,782</td><td>11</td><td>4,023,200</td><td>N/A</td></tr><tr><td></td><td></td><td>30</td><td>11,820,652</td><td>23</td><td>15,071,261</td><td>53</td><td>26,891,913</td><td>92.5%</td></tr><tr><td>Suburban</td><td>Office</td><td>7</td><td>862,800</td><td>—</td><td>—</td><td>7</td><td>862,800</td><td>83.3%</td></tr><tr><td>Total commercial properties</td><td></td><td>37</td><td>12,683,452</td><td>23</td><td>15,071,261</td><td>60</td><td>27,754,713</td><td>92.1%</td></tr><tr><td>Residential:</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Manhattan</td><td>Residential</td><td>1</td><td>82,250</td><td>8</td><td>1,663,774</td><td>9</td><td>1,746,024</td><td>75.7%</td></tr><tr><td>Total portfolio</td><td></td><td>38</td><td>12,765,702</td><td>31</td><td>16,735,035</td><td>69</td><td>29,500,737</td><td>91.2%</td></tr></table>

(1) The weighted average occupancy for commercial properties represents the total occupied square feet divided by total square footage at acquisition. The weighted average occupancy for residential properties represents the total occupied units divided by total available units.

As of December 31, 2020, we also managed two office buildings owned by third parties encompassing approximately 2.1 million square feet, and held debt and preferred equity investments with a book value of $1.1 billion, excluding $0.1 billion of debt and preferred equity investments and other financing receivables that are included in balance sheet line items other than the Debt and Preferred Equity Investments line item.

## Critical Accounting Policies

Our discussion and analysis of financial condition and results of operations is based on our consolidated financial statements, which have been prepared in accordance with accounting principles generally accepted in the United States. The preparation of these financial statements requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, and contingencies as of the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. We evaluate our assumptions and estimates on an ongoing basis. We base our estimates on historical experience and on various other assumptions that we believe to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions or conditions. We believe the following critical accounting policies affect our more significant judgments and estimates used in the preparation of our consolidated financial statements.

## Investment in Commercial Real Estate Properties

Real estate properties are presented at cost less accumulated depreciation and amortization. Costs directly related to the development or redevelopment of properties are capitalized. Ordinary repairs and maintenance are expensed as incurred; major replacements and betterments, which improve or extend the life of the asset, are capitalized and depreciated over their estimated useful lives.

We recognize the assets acquired, liabilities assumed (including contingencies) and any noncontrolling interests in an acquired entity at their respective fair values on the acquisition date.

The Company classifies those leases under which the Company is the lessee at lease commencement as finance or operating leases. Leases qualify as finance leases if the lease transfers ownership of the asset at the end of the lease term, the lease grants an option to purchase the asset that we are reasonably certain to exercise, the lease term is for a major part of the remaining economic life of the asset, or the present value of the lease payments exceeds substantially all of the fair value of the asset. Leases that do not qualify as finance leases are deemed to be operating leases. On the consolidated statements of operations, operating leases are expensed through operating lease rent while financing leases are expensed through amortization and interest expense.

We incur a variety of costs in the development and leasing of our properties. After the determination is made to capitalize a cost, it is allocated to the specific component of a project that is benefited. Determination of when a development project is substantially complete and capitalization must cease involves a degree of judgment. The costs of land and building under development include specifically identifiable costs. The capitalized costs include, but are not limited to, pre-construction costs essential to the development of the property, development costs, construction costs, interest costs, real estate taxes, salaries and related costs and other costs incurred during the period of development. We consider a construction project as substantially completed and held available for occupancy upon the completion of tenant improvements, but no later than one year after major



construction activity ceases. We cease capitalization on the portions substantially completed and occupied or held available for occupancy, and capitalize only those costs associated with the portions under construction.

On a periodic basis, we assess whether there are any indications that the value of our real estate properties may be impaired or that their carrying value may not be recoverable. A property's value is considered impaired if management's estimate of the aggregate future cash flows (undiscounted) to be generated by the property is less than the carrying value of the property. To the extent impairment has occurred, the loss will be measured as the excess of the carrying amount of the property over the fair value of the property as calculated in accordance with ASC 820.

We also evaluate our real estate properties for impairment when a property has been classified as held for sale. Real estate assets held for sale are valued at the lower of their carrying value or fair value less costs to sell and depreciation expense is no longer recorded. See Note 4, "Properties Held for Sale and Dispositions."

## Investments in Unconsolidated Joint Ventures

We account for our investments in unconsolidated joint ventures under the equity method of accounting in cases where we exercise significant influence over, but do not control, these entities and are not considered to be the primary beneficiary. We consolidate those joint ventures that we control or which are variable interest entities (each, a "VIE") and where we are considered to be the primary beneficiary. In all these joint ventures, the rights of the joint venture partner are both protective as well as participating. Unless we are determined to be the primary beneficiary in a VIE, these participating rights preclude us from consolidating these VIE entities. These investments are recorded initially at cost, as investments in unconsolidated joint ventures, and subsequently adjusted for equity in net income (loss) and cash contributions and distributions. Equity in net income (loss) from unconsolidated joint ventures is allocated based on our ownership or economic interest in each joint venture and includes adjustments related to basis differences in accounting for the investment. When a capital event (as defined in each joint venture agreement) such as a refinancing occurs, if return thresholds are met, future equity income will be allocated at our increased economic interest. We recognize incentive income from unconsolidated real estate joint ventures as income to the extent it is earned and not subject to a clawback feature. Distributions we receive from unconsolidated real estate joint ventures in excess of our basis in the investment are recorded as offsets to our investment balance if we remain liable for future obligations of the joint venture or may otherwise be committed to provide future additional financial support. We generally finance our joint ventures with non-recourse debt. In certain cases we may provide guarantees or master leases for tenant space, which terminate upon the satisfaction of specified circumstances or repayment of the underlying loans.

We assess our investments in unconsolidated joint ventures for recoverability, and if it is determined that a loss in value of the investment is other than temporary, we write down the investment to its fair value. We evaluate our equity investments for impairment based on each joint venture's actual and projected cash flows. We do not believe that the values of any of our equity investments were impaired at December 31, 2020.

We may originate loans for real estate acquisition, development and construction ("ADC loans") where we expect to receive some of the residual profit from such projects. When the risk and rewards of these arrangements are essentially the same as an investor or joint venture partner, we account for these arrangements as real estate investments under the equity method of accounting for investments. Otherwise, we account for these arrangements consistent with the accounting for our debt and preferred equity investments.

## Lease Classification

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

## Revenue Recognition

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

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



When management concludes that we are the owner of tenant improvements for accounting purposes, we record amounts funded to construct the tenant improvements as a capital asset. For these tenant improvements, we record amounts reimbursed by tenants as a reduction of the capital asset. When management concludes that the tenant is the owner of tenant improvements for accounting purposes, we record our contribution towards those improvements as a lease incentive, which is included in deferred costs, net on our consolidated balance sheets and amortized as a reduction to rental revenue on a straight-line basis over the term of the lease.

The excess of rents recognized over amounts contractually due pursuant to the underlying leases are included in deferred rents receivable on the consolidated balance sheets.

In addition to base rent, our tenants also generally will pay variable rent which represents their pro rata share of increases in real estate taxes and certain operating expenses for the building over a base year. In some leases, in lieu of paying additional rent based upon increases in certain building operating expenses, the tenant will pay additional rent based upon increases in the wage rate paid to porters over the porters' wage rate in effect during a base year or increases in the consumer price index over the index value in effect during a base year. In addition, many of our leases contain fixed percentage increases over the base rent to cover escalations. Electricity is most often supplied by the landlord either on a sub-metered basis, or rent inclusion basis (i.e., a fixed fee is included in the rent for electricity, which amount may increase based upon increases in electricity rates or increases in electrical usage by the tenant). Base building services other than electricity (such as heat, air conditioning and freight elevator service during business hours, and base building cleaning) are typically provided at no additional cost, with the tenant paying additional rent only for services which exceed base building services or for services which are provided outside normal business hours. These escalations are based on actual expenses incurred in the prior calendar year. If the expenses in the current year are different from those in the prior year, then during the current year, the escalations will be adjusted to reflect the actual expenses for the current year.

Rental revenue is recognized if collectability is probable. If collectability of substantially all of the lease payments is assessed as not probable, any difference between the rental revenue recognized to date and the lease payments that have been collected is recognized as a current-period adjustment to rental revenue. A subsequent change in the assessment of collectability to probable may result in a current-period adjustment to rental revenue for any difference between the rental revenue that would have been recognized if collectability had always been assessed as probable and the rental revenue recognized to date.

We recognize lease concessions related to COVID-19, such as rent deferrals and abatements, in accordance with the Lease Modification Q&A issued by the FASB in April 2020, which provides entities with the option to elect to account for lease concessions as though the enforceable rights and obligations existed in the original lease. This election is only available when total cash flows resulting from the modified lease are substantially similar to the cash flows in the original lease. When total cash flows resulting from the modified lease are not substantially similar to the cash flows in the original lease, we account for the concession agreement as a new lease.

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

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

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

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



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

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

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

## Debt and Preferred Equity Investments

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

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

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

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

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

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

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



## Results of Operations

## Comparison of the year ended December 31, 2020 to the year ended December 31, 2019

The following comparison for the year ended December 31, 2020, or 2020, to the year ended December 31, 2019, or 2019, makes reference to the effect of the following:

i. “Same-Store Properties,” which represents all operating properties owned by us at January 1, 2019 and still owned by us in the same manner at December 31, 2020 (Same-Store Properties totaled 28 of our 38 consolidated operating properties),

ii. “Acquisition Properties,” which represents all properties or interests in properties acquired in 2020 and 2019 and all non-Same-Store Properties, including properties that are under development or redevelopment,

iii. "Disposed Properties" which represents all properties or interests in properties sold in 2020 and 2019, and

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

<table><tr><td rowspan="2">(in millions)</td><td colspan="4">Same-Store</td><td colspan="2">Disposed</td><td colspan="3">Other</td><td colspan="4">Consolidated</td></tr><tr><td>2020</td><td>2019</td><td>$ Change</td><td>% Change</td><td>2020</td><td>2019</td><td>2020</td><td>2019</td><td>2020</td><td>2019</td><td>$ Change</td><td>% Change</td><td></td></tr><tr><td>Rental revenue</td><td>$ 727.6</td><td>$ 756.9</td><td>$ (29.3)</td><td>(3.9)%</td><td>$ 28.9</td><td>$ 95.5</td><td>$ 47.9</td><td>$131.2</td><td>$ 804.4</td><td>$ 983.6</td><td>$(179.2)</td><td></td><td>(18.2)%</td><td></td></tr><tr><td>Investment income</td><td>—</td><td>—</td><td>—</td><td>—%</td><td>—</td><td>—</td><td>120.2</td><td>195.6</td><td>120.2</td><td>195.6</td><td>(75.4)</td><td></td><td>(38.5)%</td><td></td></tr><tr><td>Other income</td><td>33.4</td><td>9.4</td><td>24.0</td><td>255.3%</td><td>3.6</td><td>4.6</td><td>91.2</td><td>45.8</td><td>128.2</td><td>59.8</td><td>68.4</td><td></td><td>114.4%</td><td></td></tr><tr><td>Total revenues</td><td>761.0</td><td>766.3</td><td>(5.3)</td><td>(0.7)%</td><td>32.5</td><td>100.1</td><td>259.3</td><td>372.6</td><td>1,052.8</td><td>1,239.0</td><td>(186.2)</td><td></td><td>(15.0)%</td><td></td></tr><tr><td>Property operating expenses</td><td>335.9</td><td>352.7</td><td>(16.8)</td><td>(4.8)%</td><td>6.9</td><td>25.7</td><td>45.7</td><td>80.3</td><td>388.5</td><td>458.7</td><td>(70.2)</td><td></td><td>(15.3)%</td><td></td></tr><tr><td>Transaction related costs</td><td>—</td><td>—</td><td>—</td><td>—%</td><td>—</td><td>—</td><td>0.5</td><td>0.7</td><td>0.5</td><td>0.7</td><td>(0.2)</td><td></td><td>(28.6)%</td><td></td></tr><tr><td>Marketing, general and administrative</td><td>—</td><td>—</td><td>—</td><td>—%</td><td>—</td><td>—</td><td>91.8</td><td>100.9</td><td>91.8</td><td>100.9</td><td>(9.1)</td><td></td><td>(9.0)%</td><td></td></tr><tr><td></td><td>335.9</td><td>352.7</td><td>(16.8)</td><td>(4.8)%</td><td>6.9</td><td>25.7</td><td>138.0</td><td>181.9</td><td>480.8</td><td>560.3</td><td>(79.5)</td><td></td><td>(14.2)%</td><td></td></tr><tr><td>Other income (expenses):</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Interest expense and amortization of deferred financing costs, net of interest income</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Depreciation and amortization</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Equity in net (loss) income from unconsolidated joint ventures</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Equity in net gain on sale of interest in unconsolidated joint venture/real estate</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Purchase price and other fair value adjustment</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Gain (loss) on sale of real estate, net</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Depreciable real estate reserves and impairments</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Loan loss and other investment reserves, net of recoveries</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Net income</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr></table>

## Rental Revenue

Rental revenues decreased primarily due to a) our Disposed Properties ($66.6 million), b) Credit Suisse vacating its space at One Madison Avenue in January 2020 pursuant to an agreement to terminate its lease early so the property can be redeveloped ($50.2 million), c) lower contribution from our Same-Store properties ($29.3 million) driven by i) lower expense escalation revenue resulting from lower operating expenses and ii) charge offs of billed tenant receivables and straight-line rent, and d) increased vacancy at 625 Madison Avenue, which is expected to be redeveloped ($26.1 million).



The following table presents a summary of the commenced leasing activity for the year ended December 31, 2020 in our Manhattan portfolio:

<table><tr><td></td><td>Usable SF</td><td>Rentable SF</td><td>New Cash Rent (per rentable SF) (1)</td><td>Prev, Escalated Rent (per rentable SF) (2)</td><td>TI/LC per rentable SF</td><td>Free Rent (in months)</td><td>Average Lease Term (in years)</td></tr><tr><td>Manhattan</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Space available at beginning of the year</td><td>1,306,757</td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Sold vacancies</td><td>(4,545)</td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Acquired vacancies</td><td>42,800</td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Property in redevelopment</td><td>(10,695)</td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Space which became available during the year(3)</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>• Office</td><td>1,170,246</td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>• Retail</td><td>90,528</td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>• Storage</td><td>6,294</td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td></td><td>1,267,068</td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Total space available</td><td>2,601,385</td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Leased space commenced during the year:</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>• Office(4)</td><td>777,511</td><td>835,150</td><td>$ 68.24</td><td>$ 65.37</td><td>$ 58.82</td><td>6.7</td><td>9.9</td></tr><tr><td>• Retail</td><td>104,800</td><td>104,164</td><td>$ 142.74</td><td>$ 107.30</td><td>$ 64.32</td><td>8.6</td><td>16.9</td></tr><tr><td>• Storage</td><td>1,339</td><td>1,249</td><td>$ 35.74</td><td>$ 37.41</td><td>$ —</td><td>3.4</td><td>3.9</td></tr><tr><td>Total leased space commenced</td><td>883,650</td><td>940,563</td><td>$ 76.44</td><td>$ 69.31</td><td>$ 59.35</td><td>6.9</td><td>10.7</td></tr><tr><td>Total available space at end of year</td><td>1,717,735</td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Early renewals</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>• Office</td><td>499,520</td><td>513,010</td><td>$ 67.87</td><td>$ 71.03</td><td>$ 17.76</td><td>4.2</td><td>4.8</td></tr><tr><td>• Retail</td><td>105,563</td><td>40,238</td><td>$ 239.85</td><td>$ 211.64</td><td>$ —</td><td>1.5</td><td>2.2</td></tr><tr><td>• Storage</td><td>15,833</td><td>7,070</td><td>$ 37.56</td><td>$ 37.01</td><td>$ —</td><td>1.9</td><td>5.3</td></tr><tr><td>Total early renewals</td><td>620,916</td><td>560,318</td><td>$ 79.84</td><td>$ 80.70</td><td>$ 16.26</td><td>3.9</td><td>4.6</td></tr><tr><td>Total commenced leases, including replaced previous vacancy</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>• Office</td><td></td><td>1,348,160</td><td>$ 68.10</td><td>$ 67.82</td><td>$ 43.20</td><td>5.8</td><td>8.0</td></tr><tr><td>• Retail</td><td></td><td>144,402</td><td>$ 169.80</td><td>$ 145.19</td><td>$ 46.40</td><td>6.6</td><td>12.8</td></tr><tr><td>• Storage</td><td></td><td>8,319</td><td>$ 37.28</td><td>$ 37.06</td><td>$ —</td><td>2.1</td><td>5.1</td></tr><tr><td>Total commenced leases</td><td></td><td>1,500,881</td><td>$ 77.71</td><td>$ 74.20</td><td>$ 43.27</td><td>5.8</td><td>8.4</td></tr></table>

(1) Annual initial base rent.

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

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

(4) Average starting office rent excluding new tenants replacing vacancies was $66.50 per rentable square feet for 672,280 rentable square feet. Average starting office rent for office space (leased and early renewals, excluding new tenants replacing vacancies) was $67.09 per rentable square feet for 1,185,290 rentable square feet.

## Investment Income

Investment income decreased primarily as a result of a decrease in the weighted average balance and weighted average yield of our debt and preferred equity investment portfolio. For the years ended December 31, 2020 and 2019, the weighted average balance of our debt and preferred equity investment portfolio and the weighted average yield were $1.4 billion and 7.7%, respectively, compared to $2.1 billion and 8.8%, respectively. As of December 31, 2020, the debt and preferred equity investment portfolio had a weighted average term to maturity of 2.3 years excluding extension options.

## Other Income

Other income increased primarily due a) to higher lease termination income in 2020 as compared with 2019 ($48.6 million), b) a settlement fee related to a previous real estate transaction ($20.2 million), and c) development fee income of ($7.3 million) in 2020, offset by d) a decrease in leasing commission income in 2020 as compared to 2019 ($7.0 million).



## Property Operating Expenses

Property operating expenses decreased primarily due to a) a reduction in variable operating expenses, such as utilities, cleaning, and security, at our Same-Store properties ($24.3 million) as a result of lower physical occupancy at the properties during the year related to COVID-19 and b) decreased operating expenses and real estate taxes at i) our Disposed properties ($18.8 million and $13.3 million, respectively) and ii) 625 Madison Avenue ($6.5 million and $10.3 million, respectively).

## Marketing, General and Administrative Expenses

Marketing, general and administrative expenses decreased to $91.8 million for the year ended December 31, 2020, compared to $100.9 million for the same period in 2019 due to reduced compensation expense.

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

Interest expense and amortization of deferred financing costs, net of interest income, decreased primarily as a result of a) a decrease in corporate interest expense due to lower LIBOR in 2020 ($21.7 million), b) the repayment of an issuance of senior unsecured notes in the first quarter of 2020 ($20.9 million), c) interest capitalization in connection with a property that is under development ($18.3 million) and d) the repayment of the Master Repurchase Agreement in the second quarter of 2020 ($10.3 million). The weighted average consolidated debt balance outstanding was $5.8 billion for the year ended December 31, 2020 as compared to $6.1 billion for the year ended December 31, 2019. The consolidated weighted average interest rate decreased to 3.06% for the year ended December 31, 2020 as compared to 4.00% for the year ended December 31, 2019 as a result of lower LIBOR.

## Depreciation and Amortization

Depreciation and amortization increased primarily due to accelerated depreciation at One Madison Avenue related to the redevelopment of the property ($55.2 million), offset by decreased depreciation and amortization at our Disposed properties ($18.5 million).

## Equity in net (loss) income from unconsolidated joint ventures

Equity in net loss from unconsolidated joint ventures decreased primarily as a result of increased contribution from 280 Park Avenue resulting from a) lower interest expense ($10.3 million) and b) a tax abatement benefit recognized in 2020 ($2.4 million).

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

During the year ended December 31, 2020, we recognized a gain on the sale of our joint venture interest in 333 East 22nd Street ($3.0 million). During the year ended December 31, 2019, we recognized gains on the sales of our joint venture interests in 521 Fifth Avenue ($57.4 million) and 131 Spring Street ($16.7 million).

## Purchase price and other fair value adjustments

In December 2020, the Company admitted partners to the One Madison Avenue development project, which resulted in the Company no longer retaining a controlling interest in the entity, as defined in ASC 810, and the deconsolidation of our remaining 50.5% interest. We recorded our investment at fair value, which resulted in the recognition of a fair value adjustment of $187.5 million.

In August 2019, the Company sold a 49% interest in 115 Spring Street, which resulted in the deconsolidation of our remaining 51% interest. We recorded our investment at fair value which resulted in the recognition of a fair value adjustment of $3.8 million.

In May 2019, the Company closed on the acquisition of a majority and controlling interest in 410 Tenth Avenue. We recorded the assets acquired and liabilities assumed at fair value which resulted in the recognition of a fair value adjustment of $67.6 million million.

## Gain (Loss) on Sale of Real Estate, Net

During the year ended December 31, 2020, we recognized gains on the sales of our interests in a) 315 West 33rd Street - "The Olivia" ($72.3 million), b) the retail condominium at 609 Fifth Avenue ($65.4 million), c) 410 Tenth Avenue ($56.4 million), d) 15 Beekman ($17.7 million), e) Williamsburg Terrace ($11.8 million) and f) 400 East 58th Street ($8.3 million), and a loss on sale related to our interest in 1055 Washington Boulevard in Stamford, Connecticut. During the year ended December 31, 2019, we recognized a loss on the sale of our interest in 562 Fifth Avenue ($26.6 million) and gains on the sales of our interests in a) 1640 Flatbush Avenue ($5.5 million), b) 115 Spring Street ($3.3 million), and c) the Suburban Properties ($1.8 million). The Suburban Properties consist of 360 Hamilton Avenue, 100 Summit Lake Drive, 200 Summit Lake Drive, and 500 Summit Lake Drive.



## Depreciable Real Estate Reserves and Impairments

During the year ended December 31, 2020, we recorded charges related to a) 106 Spring Street ($39.7 million), b) 133 Greene Street ($14.1 million), and c) 712 Madison Avenue ($6.6 million). During the year ended December 31, 2019, we recorded a charge related to 1010 Washington Boulevard in Stamford, Connecticut ($7.0 million).

Loan loss and other investment reserves, net of recoveries

During the year ended December 31, 2020, we recorded $12.3 million of losses related to certain debt and preferred equity investments that were sold and $23.0 million of loan loss and other investment reserves in conjunction with recording debt and preferred equity investments and other financing receivables at the net amount expected to be collected. There were no loan loss reserves for the year ended December 31, 2019.

## Comparison of the year ended December 31, 2019 to the year ended December 31, 2018

For a comparison of the year ended December 31, 2019 to the year ended December 31, 2018, see "Management's Discussion and Analysis of Financial Condition and Results of Operations" in Part II, Item 7 of our Form 10-K for the year ended December 31, 2019, which was filed with the SEC on February 28, 2020.

## Liquidity and Capital Resources

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

(1) Cash flow from operations;

(2) Cash on hand;

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

(4) Borrowings under the revolving credit facility;

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

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

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

As of the date of this filing, we have collected gross tenant billings for 2020 of 95.5% overall, including 97.9% from office tenants and 85.4% from retail tenants.

The combined aggregate principal maturities of our property mortgages and other loans payable, Federal Home Loan Bank of New York ("FHLB") facilities, corporate obligations and our share of joint venture debt, including as-of-right extension options, as of December 31, 2020 were as follows (in thousands):

<table><tr><td></td><td>2021</td><td>2022</td><td>2023</td><td>2024</td><td>2025</td><td>Thereafter</td><td>Total</td></tr><tr><td>Property mortgages and other loans</td><td>$ 250,727</td><td>$ 264,202</td><td>$ 566,599</td><td>$ 278,034</td><td>$ 829</td><td>$ 580,969</td><td>$ 1,941,360</td></tr><tr><td>FHLB facilities</td><td>60,000</td><td>—</td><td>—</td><td>—</td><td>—</td><td>—</td><td>60,000</td></tr><tr><td>Corporate obligations</td><td>350,000</td><td>800,000</td><td>1,410,000</td><td>200,000</td><td>100,000</td><td>100,000</td><td>2,960,000</td></tr><tr><td>Joint venture debt-our share</td><td>1,085,279</td><td>540,947</td><td>491,066</td><td>617,010</td><td>1,385,256</td><td>552,813</td><td>4,672,371</td></tr><tr><td>Total</td><td>$ 1,746,006</td><td>$ 1,605,149</td><td>$ 2,467,665</td><td>$ 1,095,044</td><td>$ 1,486,085</td><td>$ 1,233,782</td><td>$ 9,633,731</td></tr></table>

As of December 31, 2020, we had liquidity of $1.7 billion, comprised of $1.4 billion of availability under our revolving credit facility and $0.3 billion of consolidated cash on hand, inclusive of $28.6 million of marketable securities. This liquidity excludes $122.2 million representing our share of cash at unconsolidated joint venture properties. We may seek to divest of properties, interests in properties, debt and preferred equity investments or access private and public debt and equity capital when the opportunity presents itself, although there is no guarantee that this capital will be made available to us at efficient levels or at all. Management believes that these sources of liquidity, if we are able to access them, along with potential



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

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

## Cash Flows

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

Cash, restricted cash, and cash equivalents were $372.8 million and $241.4 million at December 31, 2020 and 2019, respectively, representing a increase of $131.4 million. The increase was a result of the following changes in cash flows (in thousands):

<table><tr><td rowspan="2"></td><td colspan="4">Year Ended December 31,</td></tr><tr><td>2020</td><td>2019</td><td>(Decrease) Increase</td><td></td></tr><tr><td>Net cash provided by operating activities</td><td>$ 554,236</td><td>$ 376,473</td><td>$ 177,763</td><td></td></tr><tr><td>Net cash provided by investing activities</td><td>$ 1,056,430</td><td>$ 114,494</td><td>$ 941,936</td><td></td></tr><tr><td>Net cash used in financing activities</td><td>$ (1,479,301)</td><td>$ (528,650)</td><td>$ (950,651)</td><td></td></tr></table>

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

Cash is used in investing activities to fund acquisitions, development or redevelopment projects and recurring and nonrecurring capital expenditures. We selectively invest in new projects that enable us to take advantage of our development, leasing, financing and property management skills, and invest in existing buildings that meet our investment criteria. During the year ended December 31, 2020, when compared to the year ended December 31, 2019, we used cash primarily for the following investing activities (in thousands):

<table><tr><td>Acquisitions of real estate</td><td>$ 175,745</td></tr><tr><td>Capital expenditures and capitalized interest</td><td>(205,154)</td></tr><tr><td>Escrow cash-capital improvements/acquisition deposits/deferred purchase price</td><td>5,239</td></tr><tr><td>Joint venture investments</td><td>58,367</td></tr><tr><td>Distributions from joint ventures</td><td>45,552</td></tr><tr><td>Proceeds from sales of real estate/partial interest in property</td><td>904,080</td></tr><tr><td>Debt and preferred equity and other investments</td><td>(41,893)</td></tr><tr><td>Increase in net cash provided by investing activities</td><td>$ 941,936</td></tr></table>

Funds spent on capital expenditures, which are comprised of building and tenant improvements, increased from $253.0 million for the year ended December 31, 2019 to $458.1 million for the year ended December 31, 2020 due to increased costs incurred in connection with our development and redevelopment properties.

We generally fund our investment activity through the sale of real estate, the sale of debt and preferred equity investments, property-level financing, our credit facilities, senior unsecured notes, and construction loans. From time to time, the Company may issue common or preferred stock, or the Operating Partnership may issue common or preferred units of limited partnership interest. During the year ended December 31, 2020, when compared to the year ended December 31, 2019, we used cash for the following financing activities (in thousands):



<table><tr><td>Proceeds from our debt obligations</td><td>$ 613,908</td></tr><tr><td>Repayments of our debt obligations</td><td>(1,261,752)</td></tr><tr><td>Net distribution to noncontrolling interests</td><td>(80,675)</td></tr><tr><td>Other financing activities</td><td>(49,978)</td></tr><tr><td>Proceeds from stock options exercised and DRSPP issuance</td><td>672</td></tr><tr><td>Repurchase of common stock</td><td>(144,084)</td></tr><tr><td>Redemption of preferred stock</td><td>(64,608)</td></tr><tr><td>Acquisition of subsidiary interest from noncontrolling interest</td><td>24,309</td></tr><tr><td>Dividends and distributions paid</td><td>12,390</td></tr><tr><td>Increase in net cash used in financing activities</td><td>$ (949,818)</td></tr></table>

## Capitalization

Our authorized capital stock consists of 260,000,000 shares, $0.01 par value per share, consisting of 160,000,000 shares of common stock, $0.01 par value per share, 75,000,000 shares of excess stock, at $0.01 par value per share, and 25,000,000 shares of preferred stock, $0.01 par value per share. As of December 31, 2020, 68,508,127 shares of common stock and no shares of excess stock were issued and outstanding.

On December 4, 2020 our Board of Directors declared an ordinary dividend and a special dividend (together, "the Total Dividend"). The Total Dividend was paid on January 15, 2021 to shareholders of record at the close of business on December 15, 2020 ("the Record Date"). Shareholders had the opportunity to elect to receive the Total Dividend in the form of all cash or all stock, subject to proration if either option was oversubscribed.

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

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

## Share Repurchase Program

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

At December 31, 2020, repurchases executed under the program were as follows:

<table><tr><td>Period</td><td>Shares repurchased</td><td>Average price paid per share</td><td>Cumulative number of shares repurchased as part of the repurchase plan or programs</td></tr><tr><td>Year ended 2017</td><td>8,105,881</td><td>$104.61</td><td>8,105,881</td></tr><tr><td>Year ended 2018</td><td>9,468,617</td><td>$99.03</td><td>17,574,498</td></tr><tr><td>Year ended 2019</td><td>4,465,857</td><td>$86.06</td><td>22,040,355</td></tr><tr><td>Year ended 2020 (1)</td><td>8,538,995</td><td>$62.39</td><td>30,579,350</td></tr></table>

(1) Includes 63,374 shares of common stock repurchased by the Company in December 2020 that were settled in January 2021.



## Dividend Reinvestment and Stock Purchase Plan ("DRSPP")

In February 2018, the Company filed a registration statement with the SEC for our dividend reinvestment and stock purchase plan, or DRSPP, which automatically became effective upon filing. The Company registered 3,500,000 shares of our common stock under the DRSPP. The DRSPP commenced on September 24, 2001.

The following table summarizes SL Green common stock issued, and proceeds received from dividend reinvestments and/or stock purchases under the DRSPP for the years ended December 31, 2020, 2019, and 2018, respectively (dollars in thousands):

<table><tr><td rowspan="2"></td><td colspan="4">Year Ended December 31,</td></tr><tr><td>2020</td><td>2019</td><td>2018</td><td></td></tr><tr><td>Shares of common stock issued</td><td>16,676</td><td>3,757</td><td>1,359</td><td></td></tr><tr><td>Dividend reinvestments/stock purchases under the DRSPP</td><td>1,006</td><td>334</td><td>136</td><td></td></tr></table>

## Fourth Amended and Restated 2005 Stock Option and Incentive Plan

The Fourth Amended and Restated 2005 Stock Option and Incentive Plan, or the 2005 Plan, was approved by the Company's board of directors in April 2016 and its stockholders in June 2016 at the Company's annual meeting of stockholders. Subject to adjustments upon certain corporate transactions or events, awards with respect to up to a maximum of 27,030,000 fungible units may be granted as options, restricted stock, phantom shares, dividend equivalent rights and other equity-based awards under the 2005 Plan. As of December 31, 2020, 3.1 million fungible units were available for issuance under the 2005 Plan after reserving for shares underlying outstanding restricted stock units, phantom stock units granted pursuant to our Non-Employee Directors' Deferral Program and LTIP Units.

## Deferred Compensation Plan for Directors

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

During the year ended December 31, 2020, 20,753 phantom stock units and 8,417 shares of common stock were issued to our board of directors. We recorded compensation expense of $2.3 million during the year ended December 31, 2020 related to the Deferred Compensation Plan. As of December 31, 2020, there were 140,775 phantom stock units outstanding pursuant to our Non-Employee Director's Deferral Program.

## Employee Stock Purchase Plan

In 2007, the Company's board of directors adopted the 2008 Employee Stock Purchase Plan, or ESPP, to encourage our employees to make our business more successful by providing equity-based incentives to eligible employees. The ESPP is intended to qualify as an "employee stock purchase plan" under Section 423 of the Code, and has been adopted by the board to enable our eligible employees to purchase the Company's shares of common stock through payroll deductions. The ESPP became effective on January 1, 2008 with a maximum of 500,000 shares of the common stock available for issuance, subject to adjustment upon a merger, reorganization, stock split or other similar corporate change. The Company filed a registration statement on Form S-8 with the SEC with respect to the ESPP. The common stock is offered for purchase through a series of successive offering periods. Each offering period will be three months in duration and will begin on the first day of each calendar quarter, with the first offering period having commenced on January 1, 2008. The ESPP provides for eligible employees to purchase the common stock at a purchase price equal to 85% of the lesser of (1) the market value of the common stock on the first day of the offering period or (2) the market value of the common stock on the last day of the offering period. The ESPP was approved by our stockholders at our 2008 annual meeting of stockholders. As of December 31, 2020, 156,780 shares of our common stock had been issued under the ESPP.



## Indebtedness

The table below summarizes our consolidated mortgages and other loans payable, 2017 credit facility, senior unsecured notes and trust preferred securities outstanding at December 31, 2020 and 2019, (amount in thousands).

<table><tr><td rowspan="2">Debt Summary:</td><td colspan="3">December 31,</td></tr><tr><td>2020</td><td>2019</td><td></td></tr><tr><td>Balance</td><td></td><td></td><td></td></tr><tr><td>Fixed rate</td><td>$ 1,985,572</td><td>$ 2,536,286</td><td></td></tr><tr><td>Variable rate—hedged</td><td>1,150,000</td><td>1,000,000</td><td></td></tr><tr><td>Total fixed rate</td><td>3,135,572</td><td>3,536,286</td><td></td></tr><tr><td>Total variable rate</td><td>1,827,677</td><td>2,018,434</td><td></td></tr><tr><td>Total debt</td><td>$ 4,963,249</td><td>$ 5,554,720</td><td></td></tr><tr><td>Debt, preferred equity, and other investments subject to variable rate</td><td>345,877</td><td>618,885</td><td></td></tr><tr><td>Net exposure to variable rate debt</td><td>1,481,800</td><td>1,399,549</td><td></td></tr><tr><td>Percent of Total Debt:</td><td></td><td></td><td></td></tr><tr><td>Fixed rate</td><td>63.2 %</td><td>63.7 %</td><td></td></tr><tr><td>Variable rate (1)</td><td>36.8 %</td><td>36.3 %</td><td></td></tr><tr><td>Total</td><td>100.0 %</td><td>100.0 %</td><td></td></tr><tr><td>Effective Interest Rate for the Year:</td><td></td><td></td><td></td></tr><tr><td>Fixed rate</td><td>3.65 %</td><td>4.05 %</td><td></td></tr><tr><td>Variable rate</td><td>2.30 %</td><td>3.93 %</td><td></td></tr><tr><td>Effective interest rate</td><td>2.91 %</td><td>3.85 %</td><td></td></tr></table>

(1) Inclusive of the mitigating effect of our debt, preferred equity, and other investments subject to variable rates, the percent of total debt of our net exposure to variable rate debt was 32.1% and 28.4% as of December 31, 2020 and December 31, 2019, respectively.

The variable rate debt shown above generally bears interest at an interest rate based on 30-day LIBOR (0.14% and 1.76% at December 31, 2020 and 2019, respectively). Our consolidated debt at December 31, 2020 had a weighted average term to maturity of 2.87 years.

Certain of our debt and equity investments and other investments, with carrying values of $0.3 billion at December 31, 2020 and $0.6 billion at December 31, 2019, are variable rate investments, which mitigates our exposure to interest rate changes on our unhedged variable rate debt. Inclusive of the mitigating effect of these investments, the net percent of our variable rate debt to total debt was 32.1% and 28.4%, respectively.

## Mortgage Financing

As of December 31, 2020, our total mortgage debt (excluding our share of joint venture mortgage debt of $4.7 billion) consisted of $1.1 billion of fixed rate debt, including swapped variable rate debt, with an effective weighted average interest rate of 4.31% and $0.9 billion of variable rate debt with an effective weighted average interest rate of 2.77%.

## Corporate Indebtedness

## 2017 Credit Facility

In November 2017, we entered into an amendment to the credit facility, referred to as the 2017 credit facility, that was originally entered into by the Company in November 2012, or the 2012 credit facility. As of December 31, 2020, the 2017 credit facility consisted of a $1.5 billion revolving credit facility, a $1.3 billion term loan (or "Term Loan A"), and a $200.0 million term loan (or "Term Loan B") with maturity dates of March 31, 2022, March 31, 2023, and November 21, 2024, respectively. The revolving credit facility has two six-month as-of-right extension options to March 31, 2023. We also have an option, subject to customary conditions, to increase the capacity of the credit facility to $4.5 billion at any time prior to the maturity dates for the revolving credit facility and term loans without the consent of existing lenders, by obtaining additional commitments from our existing lenders and other financial institutions.

As of December 31, 2020, the 2017 credit facility bore interest at a spread over 30-day LIBOR ranging from (i) 82.5 basis points to 155 basis points for loans under the revolving credit facility, (ii) 90 basis points to 175 basis points for loans under Term Loan A, and (iii) 85 basis points to 165 basis points for loans under Term Loan B, in each case based on the credit



rating assigned to the senior unsecured long term indebtedness of the Company. In instances where there are either only two ratings available or where there are more than two and the difference between them is one rating category, the applicable rating shall be the highest rating. In instances where there are more than two ratings and the difference between the highest and the lowest is two or more rating categories, then the applicable rating used is the average of the highest two, rounded down if the average is not a recognized category.

At December 31, 2020, the applicable spread was 100 basis points for the revolving credit facility, 110 basis points for Term Loan A, and 100 basis points for Term Loan B. We are required to pay quarterly in arrears a 12.5 to 30 basis point facility fee on the total commitments under the revolving credit facility based on the credit rating assigned to the senior unsecured long term indebtedness of the Company. As of December 31, 2020, the facility fee was 20 basis points.

As of December 31, 2020, we had $26.0 million of outstanding letters of credit, $110.0 million drawn under the revolving credit facility and $1.5 billion outstanding under the term loan facilities, with total undrawn capacity of $1.4 billion under the 2017 credit facility. At December 31, 2020 and December 31, 2019, the revolving credit facility had a carrying value of $105.3 million and $234.0 million, respectively, net of deferred financing costs. At December 31, 2020 and December 31, 2019, the term loan facilities had a carrying value of $1.5 billion and $1.5 billion, respectively, net of deferred financing costs.

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

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

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

As of December 31, 2020, the Company’s wholly-owned subsidiary, Ticonderoga Insurance Company, or Ticonderoga, a Vermont licensed captive insurance company, was a member of the Federal Home Loan Bank of New York, or FHLBNY. As a member, Ticonderoga was able to borrow funds from the FHLBNY in the form of secured advances that bore interest at a floating rate. In February 2021, Ticonderoga’s membership in FHLB New York was terminated and all advances were repaid. As of December 31, 2020, Ticonderoga had a total of $60.0 million in outstanding secured advances with an average spread of 21 basis points over 30-day LIBOR.

## Master Repurchase Agreement

The Company entered into a Master Repurchase Agreement, or MRA, known as the 2017 MRA, which provides us with the ability to sell certain mortgage investments with a simultaneous agreement to repurchase the same at a certain date or on demand. We seek to mitigate risks associated with our repurchase agreement by managing the credit quality of our assets, early repayments, interest rate volatility, liquidity, and market value. The margin call provisions under our repurchase facility permit valuation adjustments based on capital markets activity, and are not limited to collateral-specific credit marks. To monitor credit risk associated with our debt investments, our asset management team regularly reviews our investment portfolio and is in contact with our borrowers in order to monitor the collateral and enforce our rights as necessary. The risk associated with potential margin calls is further mitigated by our ability to collateralize the facility with additional assets from our portfolio of debt investments, our ability to satisfy margin calls with cash or cash equivalents and our access to additional liquidity. As of December 31, 2020, there have been no margin calls on the 2017 MRA.

In April 2018, we increased the maximum facility capacity from $300.0 million to $400.0 million. The facility bears interest on a floating rate basis at a spread to 30-day LIBOR based on the pledged collateral and advance rate and is scheduled to mature in June 2021, with a one-year extension option. At December 31, 2020, the facility had no outstanding balance.



## Senior Unsecured Notes

The following table sets forth our senior unsecured notes and other related disclosures as of December 31, 2020 and 2019, respectively, by scheduled maturity date (dollars in thousands):

<table><tr><td>Issuance</td><td>December 31, 2020 Unpaid Principal Balance</td><td>December 31, 2020 Accreted Balance</td><td>December 31, 2019 Accreted Balance</td><td>Interest Rate (1)</td><td>Initial Term (in Years)</td><td>Maturity Date</td></tr><tr><td>August 7, 2018 (2)(3)</td><td>$ 350,000</td><td>$ 350,000</td><td>$ 350,000</td><td>1.52 %</td><td>3</td><td>August 2021</td></tr><tr><td>October 5, 2017 (2)</td><td>500,000</td><td>499,803</td><td>499,695</td><td>3.25 %</td><td>5</td><td>October 2022</td></tr><tr><td>November 15, 2012 (4)</td><td>300,000</td><td>302,086</td><td>303,142</td><td>4.50 %</td><td>10</td><td>December 2022</td></tr><tr><td>December 17, 2015 (5)</td><td>100,000</td><td>100,000</td><td>100,000</td><td>4.27 %</td><td>10</td><td>December 2025</td></tr><tr><td>March 16, 2010 (6)</td><td>—</td><td>—</td><td>250,000</td><td></td><td></td><td></td></tr><tr><td></td><td>$ 1,250,000</td><td>$ 1,251,889</td><td>$ 1,502,837</td><td></td><td></td><td></td></tr><tr><td>Deferred financing costs, net</td><td></td><td>(3,670)</td><td>(5,990)</td><td></td><td></td><td></td></tr><tr><td></td><td>$ 1,250,000</td><td>$ 1,248,219</td><td>$ 1,496,847</td><td></td><td></td><td></td></tr></table>

(1) Interest rate as of December 31, 2020, taking into account interest rate hedges in effect during the period.

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

(3) The notes are subject to redemption at the Company's option, in whole but not in part, at a redemption price equal to 100% of the principal amount of the notes, plus unpaid accrued interest thereon to the redemption date. In April 2020, the Company entered into $350.0 million of fixed rate interest swaps at a rate of 0.54375% through August 2021.

(4) In October 2017, the Company and the Operating Partnership as co-obligors issued an additional $100.0 million of 4.50% senior unsecured notes due December 2022. The notes were priced at 105.334% of par.

(5) Issued by the Company and the Operating Partnership as co-obligors.

(6) In March 2020, the notes were repaid.

## Restrictive Covenants

The terms of the 2017 credit facility and certain of our senior unsecured notes include certain restrictions and covenants which may limit, among other things, our ability to pay dividends, make certain types of investments, incur additional indebtedness, incur liens and enter into negative pledge agreements and dispose of assets, and which require compliance with financial ratios relating to the maximum ratio of total indebtedness to total asset value, a minimum ratio of EBITDA to fixed charges, a maximum ratio of secured indebtedness to total asset value and a maximum ratio of unsecured indebtedness to unencumbered asset value. The dividend restriction referred to above provides that, we will not during any time when a default is continuing, make distributions with respect to common stock or other equity interests, except to enable the Company to continue to qualify as a REIT for Federal income tax purposes. As of December 31, 2020 and 2019, we were in compliance with all such covenants.

## Junior Subordinated Deferrable Interest Debentures

In June 2005, the Company and the Operating Partnership issued $100.0 million in unsecured trust preferred securities through a newly formed trust, SL Green Capital Trust I, or the Trust, which is a wholly-owned subsidiary of the Operating Partnership. The securities mature in 2035 and bear interest at a floating rate of 125 basis points over the three-month LIBOR. Interest payments may be deferred for a period of up to eight consecutive quarters if the Operating Partnership exercises its right to defer such payments. The Trust preferred securities are redeemable at the option of the Operating Partnership, in whole or in part, with no prepayment premium. We do not consolidate the Trust even though it is a variable interest entity as we are not the primary beneficiary. Because the Trust is not consolidated, we have recorded the debt on our consolidated balance sheets and the related payments are classified as interest expense.

## Interest Rate Risk

We are exposed to changes in interest rates primarily from our variable rate debt. Our exposure to interest rate fluctuations are managed through either the use of interest rate derivative instruments and/or through our variable rate debt and preferred equity investments. Based on the debt outstanding as of December 31, 2020, a hypothetical 100 basis point increase in the floating rate interest rate curve would increase our consolidated annual interest cost, net of interest income from variable rate debt and preferred equity investments, by $14.0 million and would increase our share of joint venture annual interest cost by $20.6 million. At December 31, 2020, 32.1% of our $1.1 billion debt and preferred equity portfolio is indexed to LIBOR.

We recognize most derivatives on the balance sheet at fair value. Derivatives that are not hedges are adjusted to fair value through income. If a derivative is considered a hedge, depending on the nature of the hedge, changes in the fair value of the



derivative will either be offset against the change in fair value of the hedged asset, liability, or firm commitment through earnings, or recognized in other comprehensive loss until the hedged item is recognized in earnings.

Our long-term debt of $3.1 billion bears interest at fixed rates, and therefore the fair value of these instruments is affected by changes in the market interest rates. Our variable rate debt and variable rate joint venture debt as of December 31, 2020 bore interest based on a spread of LIBOR plus 18 basis points to LIBOR plus 340 basis points.

## Contractual Obligations

The combined aggregate principal maturities of mortgages and other loans payable, the 2017 credit facility, senior unsecured notes (net of discount), trust preferred securities, our share of joint venture debt, including as-of-right extension options and put options, estimated interest expense, and our obligations under our financing and operating leases, as of December 31, 2020 are as follows (in thousands):

<table><tr><td></td><td>2021</td><td>2022</td><td>2023</td><td>2024</td><td>2025</td><td>Thereafter</td><td>Total</td></tr><tr><td>Property mortgages and other loans</td><td>$ 250,727</td><td>$ 264,202</td><td>$ 566,599</td><td>$ 278,034</td><td>$ 829</td><td>$ 580,969</td><td>$ 1,941,360</td></tr><tr><td>MRA and FHLB facilities</td><td>60,000</td><td>—</td><td>—</td><td>—</td><td>—</td><td>—</td><td>60,000</td></tr><tr><td>Revolving credit facility</td><td>—</td><td>—</td><td>110,000</td><td>—</td><td>—</td><td>—</td><td>110,000</td></tr><tr><td>Unsecured term loans</td><td>—</td><td>—</td><td>1,300,000</td><td>200,000</td><td>—</td><td>—</td><td>1,500,000</td></tr><tr><td>Senior unsecured notes</td><td>350,000</td><td>800,000</td><td>—</td><td>—</td><td>100,000</td><td>—</td><td>1,250,000</td></tr><tr><td>Trust preferred securities</td><td>—</td><td>—</td><td>—</td><td>—</td><td>—</td><td>100,000</td><td>100,000</td></tr><tr><td>Financing leases</td><td>32,527</td><td>3,523</td><td>3,570</td><td>3,641</td><td>3,810</td><td>260,550</td><td>307,621</td></tr><tr><td>Operating leases</td><td>28,534</td><td>26,228</td><td>23,921</td><td>23,939</td><td>24,026</td><td>504,360</td><td>631,008</td></tr><tr><td>Estimated interest expense</td><td>141,815</td><td>122,975</td><td>60,953</td><td>42,990</td><td>31,901</td><td>55,103</td><td>455,737</td></tr><tr><td>Joint venture debt</td><td>1,085,279</td><td>540,947</td><td>491,066</td><td>617,010</td><td>1,385,256</td><td>552,813</td><td>4,672,371</td></tr><tr><td>Total</td><td>$ 1,948,882</td><td>$ 1,757,875</td><td>$ 2,556,109</td><td>$ 1,165,614</td><td>$ 1,545,822</td><td>$ 2,053,795</td><td>$ 11,028,097</td></tr></table>

## Off-Balance Sheet Arrangements

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

## Capital Expenditures

We estimate that for the remainder of the year ending December 31, 2021, we expect to incur $88.0 million of recurring capital expenditures on existing consolidated properties and $192.2 million of development or redevelopment expenditures on existing consolidated properties, of which $65.5 million will be funded by construction financing facilities. We expect our share of capital expenditures at our joint venture properties will be $343.1 million, of which $248.1 million will be funded by construction financing facilities. We expect to fund these capital expenditures from operating cash flow, existing liquidity, and borrowings from construction financing facilities. Future property acquisitions may require substantial capital investments for refurbishment and leasing costs.

## Dividends/Distributions

We expect to pay dividends to our stockholders based on the distributions we receive from our Operating Partnership, which are generated by the collection of property revenues, net of operating expenses, and interest on our debt and preferred equity portfolio.

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

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

Based on our current annual dividend rate of $3.64 per share, we would pay $249.4 million in dividends to our common stockholders on an annual basis. Before we pay any dividend, whether for Federal income tax purposes or otherwise, which



would only be paid out of available cash to the extent permitted under the 2017 credit facility and senior unsecured notes, we must first meet both our operating requirements and scheduled debt service on our mortgages and loans payable.

## Related Party Transactions

## Cleaning/ Security/ Messenger and Restoration Services

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

Income earned from the profit participation, which is included in other income on the consolidated statements of operations, was $1.4 million, $3.9 million and $3.9 million for the years ended December 31, 2020, 2019 and 2018, respectively.

We also recorded expenses, inclusive of capitalized expenses, of $13.3 million, $18.8 million and $18.8 million the years ended December 31, 2020, 2019 and 2018, respectively, for these services (excluding services provided directly to tenants).

## Management Fees

S.L. Green Management Corp., a consolidated entity, receives property management fees from an entity in which Stephen L. Green owns an interest. We received management fees from this entity of $0.6 million, $0.6 million and $0.6 million for the years ended December 31, 2020, 2019, and 2018 respectively.

## One Vanderbilt Investment

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



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

## Insurance

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

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

## Funds from Operations

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

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



FFO for the years ended December 31, 2020, 2019, and 2018 are as follows (in thousands):

<table><tr><td rowspan="2"></td><td colspan="4">Year Ended December 31,</td></tr><tr><td>2020</td><td colspan="2">2019</td><td>2018</td></tr><tr><td>Net income attributable to SL Green common stockholders</td><td>$ 356,105</td><td>$ 255,484</td><td>$ 232,312</td><td></td></tr><tr><td>Add:</td><td></td><td></td><td></td><td></td></tr><tr><td>Depreciation and amortization</td><td>313,668</td><td>272,358</td><td>279,507</td><td></td></tr><tr><td>Joint venture depreciation and noncontrolling interest adjustments</td><td>205,869</td><td>192,426</td><td>187,147</td><td></td></tr><tr><td>Net income attributable to noncontrolling interests</td><td>34,956</td><td>10,142</td><td>12,210</td><td></td></tr><tr><td>Less:</td><td></td><td></td><td></td><td></td></tr><tr><td>Equity in net gain on sale of interest in unconsolidated joint venture/real estate</td><td>2,961</td><td>76,181</td><td>303,967</td><td></td></tr><tr><td>Depreciable real estate reserves and impairments</td><td>(60,454)</td><td>(7,047)</td><td>(227,543)</td><td></td></tr><tr><td>Gain (loss) on sale of real estate, net</td><td>215,506</td><td>(16,749)</td><td>(30,757)</td><td></td></tr><tr><td>Purchase price and other fair value adjustment</td><td>187,522</td><td>69,389</td><td>57,385</td><td></td></tr><tr><td>Depreciation on non-rental real estate assets</td><td>2,338</td><td>2,935</td><td>2,404</td><td></td></tr><tr><td>Funds from Operations attributable to SL Green common stockholders and unit holders</td><td>$ 562,725</td><td>$ 605,701</td><td>$ 605,720</td><td></td></tr><tr><td>Cash flows provided by operating activities</td><td>$ 554,236</td><td>$ 376,473</td><td>$ 441,537</td><td></td></tr><tr><td>Cash flows provided by investing activities</td><td>$ 1,056,430</td><td>$ 114,494</td><td>$ 681,662</td><td></td></tr><tr><td>Cash flows used in financing activities</td><td>$ (1,479,301)</td><td>$ (528,650)</td><td>$ (1,094,112)</td><td></td></tr></table>

## Inflation

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

## Accounting Standards Updates

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

## Forward-Looking Information

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

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

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

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



- the effect of the on-going COVID-19 pandemic and the duration of the impact it will have on our business and the industry as a whole;

• dependence upon certain geographic markets;

- risks of real estate acquisitions, dispositions, development and redevelopment, including the cost of construction delays and cost overruns;

• risks relating to debt and preferred equity investments;

• availability and creditworthiness of prospective tenants and borrowers;

• bankruptcy or insolvency of a major tenant or a significant number of smaller tenants or borrowers;

• adverse changes in the real estate markets, including reduced demand for office space, increasing vacancy, and increasing availability of sublease space;

• availability of capital (debt and equity);

• unanticipated increases in financing and other costs, including a rise in interest rates;

• our ability to comply with financial covenants in our debt instruments;

• our ability to maintain our status as a REIT;

- risks of investing through joint venture structures, including the fulfillment by our partners of their financial obligations;

• the threat of terrorist attacks;

• our ability to obtain adequate insurance coverage at a reasonable cost and the potential for losses in excess of our insurance coverage, including as a result of environmental contamination; and

- legislative, regulatory and/or safety requirements adversely affecting REITs and the real estate business including costs of compliance with the Americans with Disabilities Act, the Fair Housing Act and other similar laws and regulations.

Other factors and risks to our business, many of which are beyond our control, are described in other sections of this report and in our other filings with the SEC. Except to the extent required by law, we undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of future events, new information or otherwise.



## QUANTITATIVE AND QUALITATIVE DISCLOSURE ABOUT MARKET RISK

See "Management's Discussion and Analysis of Financial Condition and Results of Operations—Market Rate Risk" for additional information regarding our exposure to interest rate fluctuations.

The table below presents the principal cash flows based upon maturity dates of our debt obligations and debt and preferred equity investments and the weighted-average interest rates by expected maturity dates, including as-of-right extension options, as of December 31, 2020 (in thousands):

<table><tr><td rowspan="2"></td><td colspan="6">Long-Term Debt</td><td colspan="2">Debt and Preferred Equity Investments \( ^{(1)} \)</td></tr><tr><td>Fixed Rate</td><td>Average Interest Rate</td><td>Variable Rate</td><td>Average Interest Rate</td><td>Amount</td><td>Weighted Yield</td><td></td><td></td></tr><tr><td>2021</td><td>$ 360,700</td><td>3.62%</td><td>$ 300,027</td><td>1.94%</td><td>$ 216,162</td><td>6.05%</td><td></td><td></td></tr><tr><td>2022</td><td>1,006,552</td><td>3.59%</td><td>57,650</td><td>1.97%</td><td>398,053</td><td>10.33%</td><td></td><td></td></tr><tr><td>2023</td><td>806,599</td><td>3.95%</td><td>1,170,000</td><td>1.93%</td><td>245,092</td><td>1.74%</td><td></td><td></td></tr><tr><td>2024</td><td>278,034</td><td>4.26%</td><td>200,000</td><td>1.57%</td><td>6,890</td><td>—%</td><td></td><td></td></tr><tr><td>2025</td><td>100,829</td><td>4.34%</td><td>—</td><td>2.09%</td><td>30,000</td><td>8.40%</td><td></td><td></td></tr><tr><td>Thereafter</td><td>580,969</td><td>4.35%</td><td>100,000</td><td>2.82%</td><td>180,345</td><td>6.95%</td><td></td><td></td></tr><tr><td>Total</td><td>$ 3,133,683</td><td>3.78%</td><td>$ 1,827,677</td><td>1.93%</td><td>$ 1,076,542</td><td>6.83%</td><td></td><td></td></tr><tr><td>Fair Value</td><td>$ 3,237,075</td><td></td><td>$ 1,822,740</td><td></td><td></td><td></td><td></td><td></td></tr></table>

(1) Our debt and preferred equity investments had an estimated fair value ranging between $1.0 billion and $1.1 billion at December 31, 2020.

The table below presents the principal cash flows based upon maturity dates of our share of our joint venture debt obligations and the weighted-average interest rates by expected maturity dates as of December 31, 2020 (in thousands):

<table><tr><td rowspan="2"></td><td colspan="5">Long Term Debt</td></tr><tr><td>Fixed Rate</td><td>Average Interest Rate</td><td>Variable Rate</td><td>Average Interest Rate</td><td></td></tr><tr><td>2021</td><td>$ 11,415</td><td>4.15%</td><td>$ 1,073,864</td><td>2.13%</td><td></td></tr><tr><td>2022</td><td>492,801</td><td>4.11%</td><td>48,146</td><td>2.19%</td><td></td></tr><tr><td>2023</td><td>271,080</td><td>3.94%</td><td>219,986</td><td>2.57%</td><td></td></tr><tr><td>2024</td><td>16,994</td><td>3.88%</td><td>600,016</td><td>2.85%</td><td></td></tr><tr><td>2025</td><td>1,261,997</td><td>3.88%</td><td>123,259</td><td>3.34%</td><td></td></tr><tr><td>Thereafter</td><td>442,675</td><td>3.98%</td><td>110,138</td><td>3.68%</td><td></td></tr><tr><td>Total</td><td>$ 2,496,962</td><td>4.02%</td><td>$ 2,175,409</td><td>2.43%</td><td></td></tr><tr><td>Fair Value</td><td>$ 2,570,780</td><td></td><td>$ 2,164,526</td><td></td><td></td></tr></table>



The table below lists our consolidated derivative instruments, which are hedging variable rate debt, and their related fair values as of December 31, 2020 (in thousands):

<table><tr><td></td><td>Asset Hedged</td><td>Benchmark Rate</td><td>Notional Value</td><td>Strike Rate</td><td>Effective Date</td><td>Expiration Date</td><td>Fair Value</td></tr><tr><td>Interest Rate Cap</td><td>Mortgage</td><td>LIBOR</td><td>$ 85,000</td><td>4.000 %</td><td>March 2019</td><td>March 2021</td><td>$ —</td></tr><tr><td>Interest Rate Swap</td><td>Credit Facility</td><td>LIBOR</td><td>350,000</td><td>0.544 %</td><td>April 2020</td><td>August 2021</td><td>(771)</td></tr><tr><td>Interest Rate Swap</td><td>Mortgage</td><td>LIBOR</td><td>111,869</td><td>3.500 %</td><td>December 2020</td><td>November 2021</td><td>—</td></tr><tr><td>Interest Rate Cap</td><td>Mortgage</td><td>LIBOR</td><td>510,000</td><td>3.000 %</td><td>June 2020</td><td>December 2021</td><td>—</td></tr><tr><td>Interest Rate Swap</td><td>Mortgage</td><td>LIBOR</td><td>200,000</td><td>1.131 %</td><td>July 2016</td><td>July 2023</td><td>(5,004)</td></tr><tr><td>Interest Rate Swap</td><td>Credit Facility</td><td>LIBOR</td><td>100,000</td><td>1.161 %</td><td>July 2016</td><td>July 2023</td><td>(2,578)</td></tr><tr><td>Interest Rate Cap</td><td>Credit Facility</td><td>LIBOR</td><td>600,000</td><td>4.000 %</td><td>August 2020</td><td>September 2023</td><td>28</td></tr><tr><td>Interest Rate Swap</td><td>Credit Facility</td><td>LIBOR</td><td>150,000</td><td>2.696 %</td><td>January 2019</td><td>January 2024</td><td>(11,344)</td></tr><tr><td>Interest Rate Swap</td><td>Credit Facility</td><td>LIBOR</td><td>150,000</td><td>2.721 %</td><td>January 2019</td><td>January 2026</td><td>(17,714)</td></tr><tr><td>Interest Rate Swap</td><td>Credit Facility</td><td>LIBOR</td><td>200,000</td><td>2.740 %</td><td>January 2019</td><td>January 2026</td><td>(23,806)</td></tr><tr><td>Total Consolidated Hedges</td><td></td><td></td><td></td><td></td><td></td><td></td><td>$ (61,189)</td></tr></table>

In addition to these derivative instruments, some of our joint venture loan agreements require the joint venture to purchase interest rate caps on its debt. All such interest rate caps represented an asset of $1.1 million in the aggregate at December 31, 2020. We also swapped certain floating rate debt at some of our joint ventures. These swaps represented a liability of $11.4 million in the aggregate at December 31, 2020.



## SL Green Realty Corp.
Consolidated Balance Sheets
(in thousands, except per share data)

<table><tr><td></td><td>December 31, 2020</td><td>December 31, 2019</td></tr><tr><td>Assets</td><td></td><td></td></tr><tr><td>Commercial real estate properties, at cost:</td><td></td><td></td></tr><tr><td>Land and land interests</td><td>$ 1,315,832</td><td>$ 1,751,544</td></tr><tr><td>Building and improvements</td><td>4,168,193</td><td>5,154,990</td></tr><tr><td>Building leasehold and improvements</td><td>1,448,134</td><td>1,433,793</td></tr><tr><td>Right of use asset - financing leases</td><td>55,711</td><td>47,445</td></tr><tr><td>Right of use asset - operating leases</td><td>367,209</td><td>396,795</td></tr><tr><td></td><td>7,355,079</td><td>8,784,567</td></tr><tr><td>Less: accumulated depreciation</td><td>(1,956,077)</td><td>(2,060,560)</td></tr><tr><td></td><td>5,399,002</td><td>6,724,007</td></tr><tr><td>Assets held for sale</td><td>—</td><td>391,664</td></tr><tr><td>Cash and cash equivalents</td><td>266,059</td><td>166,070</td></tr><tr><td>Restricted cash</td><td>106,736</td><td>75,360</td></tr><tr><td>Investments in marketable securities</td><td>28,570</td><td>29,887</td></tr><tr><td>Tenant and other receivables</td><td>44,507</td><td>43,968</td></tr><tr><td>Related party receivables</td><td>34,657</td><td>21,121</td></tr><tr><td>Deferred rents receivable</td><td>302,791</td><td>283,011</td></tr><tr><td>Debt and preferred equity investments, net of discounts and deferred origination fees of $11,232 and $14,562 and allowances of $13,213 and $1,750 in 2020 and 2019, respectively</td><td>1,076,542</td><td>1,580,306</td></tr><tr><td>Investments in unconsolidated joint ventures</td><td>3,823,322</td><td>2,912,842</td></tr><tr><td>Deferred costs, net</td><td>177,168</td><td>205,283</td></tr><tr><td>Other assets</td><td>448,213</td><td>332,801</td></tr><tr><td>Total assets (1)</td><td>$ 11,707,567</td><td>$ 12,766,320</td></tr><tr><td>Liabilities</td><td></td><td></td></tr><tr><td>Mortgages and other loans payable, net</td><td>$ 1,979,972</td><td>$ 2,183,253</td></tr><tr><td>Revolving credit facility, net</td><td>105,262</td><td>234,013</td></tr><tr><td>Unsecured term loans, net</td><td>1,495,275</td><td>1,494,024</td></tr><tr><td>Unsecured notes, net</td><td>1,248,219</td><td>1,496,847</td></tr><tr><td>Accrued interest payable</td><td>14,825</td><td>22,148</td></tr><tr><td>Other liabilities</td><td>302,798</td><td>177,080</td></tr><tr><td>Accounts payable and accrued expenses</td><td>151,309</td><td>166,905</td></tr><tr><td>Deferred revenue</td><td>118,572</td><td>114,052</td></tr><tr><td>Lease liability - financing leases</td><td>152,521</td><td>44,448</td></tr><tr><td>Lease liability - operating leases</td><td>339,458</td><td>381,671</td></tr><tr><td>Dividend and distributions payable</td><td>149,294</td><td>79,282</td></tr><tr><td>Security deposits</td><td>53,836</td><td>62,252</td></tr><tr><td>Liabilities related to assets held for sale</td><td>—</td><td>—</td></tr><tr><td>Junior subordinated deferrable interest debentures held by trusts that issued trust preferred securities</td><td>100,000</td><td>100,000</td></tr><tr><td>Total liabilities (1)</td><td>6,211,341</td><td>6,555,975</td></tr><tr><td>Commitments and contingencies</td><td></td><td></td></tr><tr><td>Noncontrolling interests in Operating Partnership</td><td>358,262</td><td>409,862</td></tr><tr><td>Preferred units</td><td>202,169</td><td>283,285</td></tr></table>



# SL Green Realty Corp.
Consolidated Balance Sheets
(in thousands, except per share data)

<table><tr><td></td><td>December 31, 2020</td><td>December 31, 2019</td></tr><tr><td>Equity</td><td></td><td></td></tr><tr><td>SL Green stockholders&#x27; equity:</td><td></td><td></td></tr><tr><td>Series I Preferred Stock, $0.01 par value, $25.00 liquidation preference, 9,200 issued and outstanding at both December 31, 2020 and 2019</td><td>221,932</td><td>221,932</td></tr><tr><td>Common stock, $0.01 par value, 160,000 shares authorized and 69,534 and 77,981 issued and outstanding at December 31, 2020 and 2019, respectively (including 1,026 and 1,026 shares held in treasury at December 31, 2020 and 2019, respectively)</td><td>716</td><td>803</td></tr><tr><td>Additional paid-in-capital</td><td>3,862,949</td><td>4,286,395</td></tr><tr><td>Treasury stock at cost</td><td>(124,049)</td><td>(124,049)</td></tr><tr><td>Accumulated other comprehensive loss</td><td>(67,247)</td><td>(28,485)</td></tr><tr><td>Retained earnings</td><td>1,015,462</td><td>1,084,719</td></tr><tr><td>Total SL Green stockholders&#x27; equity</td><td>4,909,763</td><td>5,441,315</td></tr><tr><td>Noncontrolling interests in other partnerships</td><td>26,032</td><td>75,883</td></tr><tr><td>Total equity</td><td>4,935,795</td><td>5,517,198</td></tr><tr><td>Total liabilities and equity</td><td>$11,707,567</td><td>$12,766,320</td></tr></table>

(1) The Company's consolidated balance sheets include assets and liabilities of consolidated variable interest entities ("VIEs"). See Note 2. The consolidated balance sheets include the following amounts related to our consolidated VIEs, excluding the Operating Partnership: $41.2 million and $205.2 million of land, $57.9 million and $481.9 million of building and improvements, $2.0 million and $2.0 million of building and leasehold improvements, $37.8 million and $61.7 million of right of use assets, $10.3 million and $17.6 million of accumulated depreciation, $289.5 million and $169.5 million of other assets included in other line items, $94.0 million and $457.1 million of real estate debt, net, $0.7 million and $1.2 million of accrued interest payable, $29.9 million and $57.7 million of lease liabilities, and $56.6 million and $43.7 million of other liabilities included in other line items as of December 31, 2020 and December 31, 2019, respectively.

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



# SL Green Realty Corp.
Consolidated Statements of Operations
(in thousands, except per share data)

<table><tr><td rowspan="2"></td><td colspan="3">Year Ended December 31,</td></tr><tr><td>2020</td><td>2019</td><td>2018</td></tr><tr><td>Revenues</td><td></td><td></td><td></td></tr><tr><td>Rental revenue, net</td><td>$ 804,423</td><td>$ 983,557</td><td>$ 978,574</td></tr><tr><td>Investment income</td><td>120,163</td><td>195,590</td><td>201,492</td></tr><tr><td>Other income</td><td>128,158</td><td>59,848</td><td>47,326</td></tr><tr><td>Total revenues</td><td>1,052,744</td><td>1,238,995</td><td>1,227,392</td></tr><tr><td>Expenses</td><td></td><td></td><td></td></tr><tr><td>Operating expenses, including $12,643 in 2020, $18,106 in 2019, $17,823 in 2018 of related party expenses</td><td>183,200</td><td>234,676</td><td>229,347</td></tr><tr><td>Real estate taxes</td><td>176,315</td><td>190,764</td><td>186,351</td></tr><tr><td>Operating lease rent</td><td>29,043</td><td>33,188</td><td>32,965</td></tr><tr><td>Interest expense, net of interest income</td><td>116,679</td><td>190,521</td><td>208,669</td></tr><tr><td>Amortization of deferred financing costs</td><td>11,794</td><td>11,653</td><td>12,408</td></tr><tr><td>Depreciation and amortization</td><td>313,668</td><td>272,358</td><td>279,507</td></tr><tr><td>Loan loss and other investment reserves, net of recoveries</td><td>35,298</td><td>—</td><td>6,839</td></tr><tr><td>Transaction related costs</td><td>503</td><td>729</td><td>1,099</td></tr><tr><td>Marketing, general and administrative</td><td>91,826</td><td>100,875</td><td>92,631</td></tr><tr><td>Total expenses</td><td>958,326</td><td>1,034,764</td><td>1,049,816</td></tr><tr><td>Equity in net (loss) income from unconsolidated joint ventures</td><td>(25,195)</td><td>(34,518)</td><td>7,311</td></tr><tr><td>Equity in net gain on sale of interest in unconsolidated joint venture/real estate</td><td>2,961</td><td>76,181</td><td>303,967</td></tr><tr><td>Purchase price and other fair value adjustment</td><td>187,522</td><td>69,389</td><td>57,385</td></tr><tr><td>Gain (loss) on sale of real estate, net</td><td>215,506</td><td>(16,749)</td><td>(30,757)</td></tr><tr><td>Depreciable real estate reserves and impairments</td><td>(60,454)</td><td>(7,047)</td><td>(227,543)</td></tr><tr><td>Loss on early extinguishment of debt</td><td>—</td><td>—</td><td>(17,083)</td></tr><tr><td>Net income</td><td>414,758</td><td>291,487</td><td>270,856</td></tr><tr><td>Net income attributable to noncontrolling interests:</td><td></td><td></td><td></td></tr><tr><td>Noncontrolling interests in the Operating Partnership</td><td>(20,016)</td><td>(13,301)</td><td>(12,216)</td></tr><tr><td>Noncontrolling interests in other partnerships</td><td>(14,940)</td><td>3,159</td><td>6</td></tr><tr><td>Preferred units distributions</td><td>(8,747)</td><td>(10,911)</td><td>(11,384)</td></tr><tr><td>Net income attributable to SL Green</td><td>371,055</td><td>270,434</td><td>247,262</td></tr><tr><td>Perpetual preferred stock dividends</td><td>(14,950)</td><td>(14,950)</td><td>(14,950)</td></tr><tr><td>Net income attributable to SL Green common stockholders</td><td>$ 356,105</td><td>$ 255,484</td><td>$ 232,312</td></tr><tr><td>Basic earnings per share:</td><td>$ 4.88</td><td>$ 3.20</td><td>$ 2.75</td></tr><tr><td>Diluted earnings per share:</td><td>$ 4.87</td><td>$ 3.19</td><td>$ 2.75</td></tr><tr><td>Basic weighted average common shares outstanding</td><td>72,552</td><td>79,415</td><td>84,090</td></tr><tr><td>Diluted weighted average common shares and common share equivalents outstanding</td><td>77,243</td><td>84,234</td><td>89,071</td></tr></table>

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



# SL Green Realty Corp.
Consolidated Statements of Comprehensive Income
(in thousands)

<table><tr><td rowspan="2"></td><td colspan="4">Year Ended December 31,</td></tr><tr><td>2020</td><td colspan="2">2019</td><td>2018</td></tr><tr><td>Net income</td><td>$     414,758</td><td>$     291,487</td><td>$     270,856</td><td></td></tr><tr><td>Other comprehensive loss:</td><td></td><td></td><td></td><td></td></tr><tr><td>Decrease in unrealized value of derivative instruments, including SL Green&#x27;s share of joint venture derivative instruments</td><td>(39,743)</td><td>(47,118)</td><td>(3,622)</td><td></td></tr><tr><td>(Decrease) increase in unrealized value of marketable securities</td><td>(1,318)</td><td>1,249</td><td>60</td><td></td></tr><tr><td>Other comprehensive loss</td><td>(41,061)</td><td>(45,869)</td><td>(3,562)</td><td></td></tr><tr><td>Comprehensive income</td><td>373,697</td><td>245,618</td><td>267,294</td><td></td></tr><tr><td>Net income attributable to noncontrolling interests and preferred units distributions</td><td>(43,703)</td><td>(21,053)</td><td>(23,594)</td><td></td></tr><tr><td>Other comprehensive loss attributable to noncontrolling interests</td><td>2,299</td><td>2,276</td><td>66</td><td></td></tr><tr><td>Comprehensive income attributable to SL Green</td><td>$     332,293</td><td>$     226,841</td><td>$     243,766</td><td></td></tr></table>

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



## SL Green Realty Corp.
Consolidated Statements of Equity
(in thousands, except per share data)

<table><tr><td rowspan="2"></td><td colspan="9">SL Green Realty Corp. Stockholders</td></tr><tr><td colspan="3">Common Stock</td><td rowspan="2">Additional Paid-In-Capital</td><td rowspan="2">Treasury Stock</td><td rowspan="2">Accumulated Other Comprehensive Income (Loss)</td><td rowspan="2">Retained Earnings</td><td rowspan="2">Noncontrolling Interests</td><td rowspan="2">Total</td></tr><tr><td>Balance at December 31, 2017</td><td>Series I Preferred Stock</td><td>Shares (1)</td><td>Par Value</td></tr><tr><td>Cumulative adjustment upon adoption of ASC 610-20</td><td>$ 221,932</td><td>90,172</td><td>$ 939</td><td>$4,968,338</td><td>$ (124,049)</td><td>$ 18,604</td><td>$1,139,329</td><td>$ 364,361</td><td>$6,589,454</td></tr><tr><td>Balance at January 1, 2018</td><td>221,932</td><td>90,172</td><td>939</td><td>4,968,338</td><td>(124,049)</td><td>18,604</td><td>1,709,853</td><td>364,361</td><td>7,159,978</td></tr><tr><td>Net income (loss)</td><td></td><td></td><td></td><td></td><td></td><td></td><td>247,262</td><td>(6)</td><td>247,256</td></tr><tr><td>Other comprehensive loss</td><td></td><td></td><td></td><td></td><td></td><td>(3,496)</td><td></td><td></td><td>(3,496)</td></tr><tr><td>Preferred dividends</td><td></td><td></td><td></td><td></td><td></td><td></td><td>(14,950)</td><td></td><td>(14,950)</td></tr><tr><td>DRSPP proceeds</td><td></td><td>1</td><td></td><td>136</td><td></td><td></td><td></td><td></td><td>136</td></tr><tr><td>Conversion of units in the Operating Partnership to common stock</td><td></td><td>155</td><td>2</td><td>16,301</td><td></td><td></td><td></td><td></td><td>16,303</td></tr><tr><td>Reallocation of noncontrolling interest in the Operating Partnership</td><td></td><td></td><td></td><td></td><td></td><td></td><td>34,236</td><td></td><td>34,236</td></tr><tr><td>Deferred compensation plan and stock awards, net of forfeitures and tax withholdings</td><td></td><td>145</td><td>1</td><td>17,483</td><td></td><td></td><td></td><td></td><td>17,484</td></tr><tr><td>Repurchases of common stock</td><td></td><td>(9,469)</td><td>(98)</td><td>(522,482)</td><td></td><td></td><td>(415,215)</td><td></td><td>(937,795)</td></tr><tr><td>Proceeds from stock options exercised</td><td></td><td>307</td><td>3</td><td>28,909</td><td></td><td></td><td></td><td></td><td>28,912</td></tr><tr><td>Contributions to consolidated joint venture interests</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td>5,459</td><td>5,459</td></tr><tr><td>Deconsolidation of partially owned entity</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td>(315,116)</td><td>(315,116)</td></tr><tr><td>Distributions to noncontrolling interests</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td>(8,364)</td><td>(8,364)</td></tr><tr><td>Cash distributions declared ($3.3834 per common share, none of which represented a return of capital for federal income tax purposes)</td><td></td><td></td><td></td><td></td><td></td><td></td><td>(282,188)</td><td></td><td>(282,188)</td></tr><tr><td>Balance at December 31, 2018</td><td>221,932</td><td>81,311</td><td>847</td><td>4,508,685</td><td>(124,049)</td><td>15,108</td><td>1,278,998</td><td>46,334</td><td>5,947,855</td></tr><tr><td>Net income (loss)</td><td></td><td></td><td></td><td>(569)</td><td></td><td></td><td>270,434</td><td>(3,159)</td><td>267,275</td></tr><tr><td>Acquisition of subsidiary interest from noncontrolling interest</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td>(25,276)</td><td>(25,845)</td></tr><tr><td>Other comprehensive loss</td><td></td><td></td><td></td><td></td><td></td><td>(43,593)</td><td></td><td></td><td>(43,593)</td></tr><tr><td>Preferred dividends</td><td></td><td></td><td></td><td></td><td></td><td></td><td>(14,950)</td><td></td><td>(14,950)</td></tr><tr><td>DRSPP proceeds</td><td></td><td>4</td><td></td><td>334</td><td></td><td></td><td></td><td></td><td>334</td></tr><tr><td>Conversion of units in the Operating Partnership to common stock</td><td></td><td>5</td><td></td><td>471</td><td></td><td></td><td></td><td></td><td>471</td></tr><tr><td>Reallocation of noncontrolling interest in the Operating Partnership</td><td></td><td></td><td></td><td></td><td></td><td></td><td>(34,320)</td><td></td><td>(34,320)</td></tr><tr><td>Deferred compensation plan and stock awards, net of forfeitures and tax withholdings</td><td></td><td>102</td><td>2</td><td>25,761</td><td></td><td></td><td></td><td></td><td>25,763</td></tr><tr><td>Repurchases of common stock</td><td></td><td>(4,466)</td><td>(46)</td><td>(248,287)</td><td></td><td></td><td>(136,066)</td><td></td><td>(384,399)</td></tr><tr><td>Contributions to consolidated joint venture interests</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td>58,462</td><td>58,462</td></tr><tr><td>Distributions to noncontrolling interests</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td>(478)</td><td>(478)</td></tr><tr><td>Cash distributions declared ($3.5352 per common share, none of which represented a return of capital for federal income tax purposes)</td><td></td><td></td><td></td><td></td><td></td><td></td><td>(279,377)</td><td></td><td>(279,377)</td></tr><tr><td>Balance at December 31, 2019</td><td>221,932</td><td>76,956</td><td>803</td><td>4,286,395</td><td>(124,049)</td><td>(28,485)</td><td>1,084,719</td><td>75,883</td><td>5,517,198</td></tr><tr><td>Cumulative adjustment upon adoption of ASC 326</td><td></td><td></td><td></td><td></td><td></td><td></td><td>(39,184)</td><td></td><td>(39,184)</td></tr><tr><td>Balance at January 1, 2020</td><td>221,932</td><td>76,956</td><td>803</td><td>4,286,395</td><td>(124,049)</td><td>(28,485)</td><td>1,045,535</td><td>75,883</td><td>5,478,014</td></tr><tr><td>Net income</td><td></td><td></td><td></td><td></td><td></td><td></td><td>371,055</td><td>14,940</td><td>385,995</td></tr><tr><td>Acquisition of subsidiary interest from noncontrolling interest</td><td></td><td></td><td></td><td>(3,123)</td><td></td><td></td><td></td><td>1,587</td><td>(1,536)</td></tr><tr><td>Other comprehensive loss</td><td></td><td></td><td></td><td></td><td></td><td>(38,762)</td><td></td><td></td><td>(38,762)</td></tr><tr><td>Preferred dividends</td><td></td><td></td><td></td><td></td><td></td><td></td><td>(14,950)</td><td></td><td>(14,950)</td></tr><tr><td>DRSPP proceeds</td><td></td><td>17</td><td></td><td>1,006</td><td></td><td></td><td></td><td></td><td>1,006</td></tr><tr><td>Conversion of units in the Operating Partnership to common stock</td><td></td><td>98</td><td>1</td><td>8,743</td><td></td><td></td><td></td><td></td><td>8,744</td></tr><tr><td>Reallocation of noncontrolling interest in the Operating Partnership</td><td></td><td></td><td></td><td></td><td></td><td></td><td>32,598</td><td></td><td>32,598</td></tr></table>



## SL Green Realty Corp.
Consolidated Statements of Equity
(in thousands, except per share data)

SL Green Realty Corp. Stockholders

<table><tr><td rowspan="2"></td><td colspan="4">Common Stock</td><td rowspan="2">Treasury Stock</td><td rowspan="2">Accumulated Other Comprehensive Income (Loss)</td><td rowspan="2">Retained Earnings</td><td rowspan="2">Noncontrolling Interests</td><td rowspan="2">Total</td></tr><tr><td>Series I Preferred Stock</td><td>Shares (1)</td><td>Par Value</td><td>Additional Paid-In-Capital</td></tr><tr><td>Deferred compensation plan and stock awards, net of forfeitures and tax withholdings</td><td></td><td>(34)</td><td>—</td><td>25,271</td><td></td><td></td><td>(76,831)</td><td></td><td>25,271</td></tr><tr><td>Repurchases of common stock</td><td></td><td>(8,529)</td><td>(88)</td><td>(455,343)</td><td></td><td></td><td></td><td>12,477</td><td>(532,262)</td></tr><tr><td>Contributions to consolidated joint venture interests</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td>(78,855)</td><td>12,477</td></tr><tr><td>Distributions to noncontrolling interests</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td>(78,855)</td></tr><tr><td>Cash distributions declared ($4.7908 per common share, none of which represented a return of capital for federal income tax purposes)</td><td></td><td></td><td></td><td></td><td></td><td></td><td>(341,945)</td><td></td><td>(341,945)</td></tr><tr><td>Balance at December 31, 2020</td><td>$221,932</td><td>68,508</td><td>$ 716</td><td>$3,862,949</td><td>$ (124,049)</td><td>$ (67,247)</td><td>$1,015,462</td><td>$ 26,032</td><td>$4,935,795</td></tr></table>

(1) On January 21, 2021, we completed a reverse stock split whereby every 1.02918 SL Green common share was combined into 1 SL Green common share. We have retroactively adjusted the outstanding share counts, share activity, cash distributions declared, and earnings per share, as if the reverse split occurred on December 31, 2017.

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



# SL Green Realty Corp.
Consolidated Statements of Cash Flows
(in thousands, except per share data)

<table><tr><td rowspan="2"></td><td colspan="3">Year Ended December 31,</td></tr><tr><td>2020</td><td>2019</td><td>2018</td></tr><tr><td>Operating Activities</td><td></td><td></td><td></td></tr><tr><td>Net income</td><td>$ 414,758</td><td>$ 291,487</td><td>$ 270,856</td></tr><tr><td>Adjustments to reconcile net income to net cash provided by operating activities:</td><td></td><td></td><td></td></tr><tr><td>Depreciation and amortization</td><td>325,462</td><td>284,011</td><td>289,899</td></tr><tr><td>Equity in net loss (income) from unconsolidated joint ventures</td><td>25,195</td><td>34,518</td><td>(7,311)</td></tr><tr><td>Distributions of cumulative earnings from unconsolidated joint ventures</td><td>679</td><td>864</td><td>10,277</td></tr><tr><td>Equity in net gain on sale of interest in unconsolidated joint venture interest/real estate</td><td>(2,961)</td><td>(76,181)</td><td>(303,967)</td></tr><tr><td>Purchase price and other fair value adjustments</td><td>(187,522)</td><td>(69,389)</td><td>(57,385)</td></tr><tr><td>Depreciable real estate reserves and impairments</td><td>60,454</td><td>7,047</td><td>227,543</td></tr><tr><td>(Gain) loss on sale of real estate, net</td><td>(215,506)</td><td>16,749</td><td>30,757</td></tr><tr><td>Loan loss reserves and other investment reserves, net of recoveries</td><td>35,298</td><td>—</td><td>6,839</td></tr><tr><td>Loss on early extinguishment of debt</td><td>—</td><td>—</td><td>17,083</td></tr><tr><td>Deferred rents receivable</td><td>(7,582)</td><td>(13,941)</td><td>(18,216)</td></tr><tr><td>Non-cash lease expense</td><td>11,984</td><td>13,744</td><td>2,016</td></tr><tr><td>Other non-cash adjustments</td><td>15,178</td><td>271</td><td>2,932</td></tr><tr><td>Changes in operating assets and liabilities:</td><td></td><td></td><td></td></tr><tr><td>Tenant and other receivables</td><td>(17,074)</td><td>(4,968)</td><td>6,968</td></tr><tr><td>Related party receivables</td><td>1,451</td><td>7,802</td><td>(1,044)</td></tr><tr><td>Deferred lease costs</td><td>(20,900)</td><td>(70,938)</td><td>(44,158)</td></tr><tr><td>Other assets</td><td>(26,137)</td><td>(18,630)</td><td>(8,310)</td></tr><tr><td>Accounts payable, accrued expenses, other liabilities and security deposits</td><td>132,171</td><td>(25,597)</td><td>4,410</td></tr><tr><td>Deferred revenue</td><td>20,657</td><td>10,824</td><td>12,348</td></tr><tr><td>Change in lease liability - operating leases</td><td>(11,369)</td><td>(11,200)</td><td>—</td></tr><tr><td>Net cash provided by operating activities</td><td>554,236</td><td>376,473</td><td>441,537</td></tr><tr><td>Investing Activities</td><td></td><td></td><td></td></tr><tr><td>Acquisitions of real estate property</td><td>$ (86,846)</td><td>$ (262,591)</td><td>$ (60,486)</td></tr><tr><td>Additions to land, buildings and improvements</td><td>(458,140)</td><td>(252,986)</td><td>(254,460)</td></tr><tr><td>Acquisition deposits and deferred purchase price</td><td>—</td><td>(5,239)</td><td>—</td></tr><tr><td>Investments in unconsolidated joint ventures</td><td>(70,315)</td><td>(128,682)</td><td>(400,429)</td></tr><tr><td>Distributions in excess of cumulative earnings from unconsolidated joint ventures</td><td>124,572</td><td>79,020</td><td>233,118</td></tr><tr><td>Net proceeds from disposition of real estate/joint venture interest</td><td>1,112,382</td><td>208,302</td><td>1,231,004</td></tr><tr><td>Other investments</td><td>32,479</td><td>(7,869)</td><td>(38,912)</td></tr><tr><td>Origination of debt and preferred equity investments</td><td>(360,953)</td><td>(607,844)</td><td>(731,216)</td></tr><tr><td>Repayments or redemption of debt and preferred equity investments</td><td>763,251</td><td>1,092,383</td><td>703,043</td></tr><tr><td>Net cash provided by investing activities</td><td>1,056,430</td><td>114,494</td><td>681,662</td></tr></table>



## SL Green Realty Corp.
Consolidated Statements of Cash Flows
(in thousands, except per share data)

<table><tr><td rowspan="2"></td><td colspan="3">Year Ended December 31,</td></tr><tr><td>2020</td><td>2019</td><td>2018</td></tr><tr><td>Financing Activities</td><td></td><td></td><td></td></tr><tr><td>Proceeds from mortgages and other loans payable</td><td>$ 1,181,892</td><td>$ 752,984</td><td>$ 564,391</td></tr><tr><td>Repayments of mortgages and other loans payable</td><td>(1,186,828)</td><td>(230,076)</td><td>(868,842)</td></tr><tr><td>Proceeds from revolving credit facility and senior unsecured notes</td><td>1,495,000</td><td>1,310,000</td><td>3,120,000</td></tr><tr><td>Repayments of revolving credit facility and senior unsecured notes</td><td>(1,875,000)</td><td>(1,570,000)</td><td>(2,560,000)</td></tr><tr><td>Payment of debt extinguishment costs</td><td>—</td><td>—</td><td>(13,918)</td></tr><tr><td>Proceeds from stock options exercised and DRSPP issuance</td><td>1,006</td><td>334</td><td>29,048</td></tr><tr><td>Repurchase of common stock</td><td>(528,483)</td><td>(384,399)</td><td>(979,541)</td></tr><tr><td>Redemption of preferred stock</td><td>(82,750)</td><td>(18,142)</td><td>(1,208)</td></tr><tr><td>Redemption of OP units</td><td>(27,342)</td><td>(27,495)</td><td>(33,972)</td></tr><tr><td>Distributions to noncontrolling interests in other partnerships</td><td>(85,468)</td><td>(478)</td><td>(8,364)</td></tr><tr><td>Contributions from noncontrolling interests in other partnerships</td><td>12,477</td><td>10,239</td><td>5,459</td></tr><tr><td>Acquisition of subsidiary interest from noncontrolling interest</td><td>(1,536)</td><td>(25,845)</td><td>—</td></tr><tr><td>Distributions to noncontrolling interests in the Operating Partnership</td><td>(12,652)</td><td>(14,729)</td><td>(15,000)</td></tr><tr><td>Dividends paid on common and preferred stock</td><td>(293,996)</td><td>(306,386)</td><td>(313,230)</td></tr><tr><td>Other obligations related to loan participations</td><td>—</td><td>—</td><td>16</td></tr><tr><td>Tax withholdings related to restricted share awards</td><td>(4,752)</td><td>(3,495)</td><td>(3,842)</td></tr><tr><td>Deferred loan costs</td><td>(70,036)</td><td>(21,162)</td><td>(15,109)</td></tr><tr><td>Principal payments of on financing lease liabilities</td><td>(833)</td><td>—</td><td>—</td></tr><tr><td>Net cash used in financing activities</td><td>(1,479,301)</td><td>(528,650)</td><td>(1,094,112)</td></tr><tr><td>Net increase (decrease) in cash, cash equivalents, and restricted cash</td><td>131,365</td><td>(37,683)</td><td>29,087</td></tr><tr><td>Cash, cash equivalents, and restricted cash at beginning of year</td><td>241,430</td><td>279,113</td><td>250,026</td></tr><tr><td>Cash, cash equivalents, and restricted cash at end of period</td><td>$ 372,795</td><td>$ 241,430</td><td>$ 279,113</td></tr><tr><td>Supplemental cash flow disclosures:</td><td></td><td></td><td></td></tr><tr><td>Interest paid</td><td>$ 201,348</td><td>$ 248,684</td><td>$ 259,776</td></tr><tr><td>Income taxes paid</td><td>$ 2,296</td><td>$ 1,489</td><td>$ 1,418</td></tr><tr><td>Supplemental Disclosure of Non-Cash Investing and Financing Activities:</td><td></td><td></td><td></td></tr><tr><td>Conversion of units in the Operating Partnership</td><td>$ 8,744</td><td>$ 471</td><td>$ 16,303</td></tr><tr><td>Redemption of units in the Operating Partnership for a joint venture sale</td><td>—</td><td>—</td><td>10,445</td></tr><tr><td>Exchange of preferred equity investment for real estate or equity in joint venture</td><td>119,497</td><td>—</td><td>—</td></tr><tr><td>Exchange of debt investment for real estate or equity in joint venture</td><td>122,796</td><td>34,498</td><td>298,956</td></tr><tr><td>Issuance of preferred units relating to a real estate acquisition</td><td>—</td><td>1,000</td><td>—</td></tr><tr><td>Tenant improvements and capital expenditures payable</td><td>1,665</td><td>6,056</td><td>—</td></tr><tr><td>Fair value adjustment to noncontrolling interest in the Operating Partnership</td><td>32,598</td><td>34,320</td><td>34,236</td></tr><tr><td>Deconsolidation of a subsidiary</td><td>854,437</td><td>395</td><td>298,404</td></tr><tr><td>Deconsolidation of a subsidiary mortgage</td><td>5,593</td><td>—</td><td>—</td></tr><tr><td>Mortgages assumed in connection with sale of real estate</td><td>250,000</td><td>—</td><td>—</td></tr><tr><td>Seller financed purchases</td><td>100,000</td><td>—</td><td>—</td></tr><tr><td>Debt and preferred equity investments</td><td>9,014</td><td>—</td><td>—</td></tr><tr><td>Transfer of assets related to assets held for sale</td><td>—</td><td>391,664</td><td>—</td></tr><tr><td>Reversal of assets held for sale</td><td>391,664</td><td>—</td><td>—</td></tr><tr><td>Transfer of liabilities related to assets held for sale</td><td>—</td><td>—</td><td>—</td></tr><tr><td>Removal of fully depreciated commercial real estate properties</td><td>66,169</td><td>19,577</td><td>124,249</td></tr></table>



# SL Green Realty Corp.
Consolidated Statements of Cash Flows
(in thousands, except per share data)

<table><tr><td rowspan="2"></td><td colspan="3">Year Ended December 31,</td></tr><tr><td>2020</td><td>2019</td><td>2018</td></tr><tr><td>Contribution to consolidated joint venture by noncontrolling interest</td><td>—</td><td>48,223</td><td>—</td></tr><tr><td>Distributions to noncontrolling interests</td><td>6,613</td><td>—</td><td>—</td></tr><tr><td>Share repurchase payable</td><td>3,779</td><td>—</td><td>—</td></tr><tr><td>Recognition of sales-type leases and related lease liabilities</td><td>119,725</td><td>—</td><td>—</td></tr><tr><td>Recognition of right of use assets and related lease liabilities</td><td>61,990</td><td>389,120</td><td>—</td></tr></table>

In December 2020, the Company declared a regular monthly distribution per share of $0.3122 and a special distribution per share of $1.7462 that was paid primarily in stock. These distributions were paid in January 2021. In December 2019 and 2018, the Company declared quarterly distributions per share of $0.9108 and $0.8748, respectively. These distributions were paid in January 2020 and 2019, respectively. These distribution amounts have been retroactively adjusted to reflect the reverse stock split that was effectuated in January 2021.

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

<table><tr><td rowspan="2"></td><td colspan="4">Year Ended</td></tr><tr><td>2020</td><td>2019</td><td>2018</td><td></td></tr><tr><td>Cash and cash equivalents</td><td>$ 266,059</td><td>$ 166,070</td><td>$ 129,475</td><td></td></tr><tr><td>Restricted cash</td><td>106,736</td><td>75,360</td><td>149,638</td><td></td></tr><tr><td>Total cash, cash equivalents, and restricted cash</td><td>$ 372,795</td><td>$ 241,430</td><td>$ 279,113</td><td></td></tr></table>

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



## SL Green Operating Partnership, L.P.
Consolidated Balance Sheets
(in thousands, except per unit data)

<table><tr><td></td><td>December 31, 2020</td><td>December 31, 2019</td></tr><tr><td>Assets</td><td></td><td></td></tr><tr><td>Commercial real estate properties, at cost:</td><td></td><td></td></tr><tr><td>Land and land interests</td><td>$ 1,315,832</td><td>$ 1,751,544</td></tr><tr><td>Building and improvements</td><td>4,168,193</td><td>5,154,990</td></tr><tr><td>Building leasehold and improvements</td><td>1,448,134</td><td>1,433,793</td></tr><tr><td>Right of use asset - financing leases</td><td>55,711</td><td>47,445</td></tr><tr><td>Right of use asset - operating leases</td><td>367,209</td><td>396,795</td></tr><tr><td></td><td>7,355,079</td><td>8,784,567</td></tr><tr><td>Less: accumulated depreciation</td><td>(1,956,077)</td><td>(2,060,560)</td></tr><tr><td></td><td>5,399,002</td><td>6,724,007</td></tr><tr><td>Assets held for sale</td><td>—</td><td>391,664</td></tr><tr><td>Cash and cash equivalents</td><td>266,059</td><td>166,070</td></tr><tr><td>Restricted cash</td><td>106,736</td><td>75,360</td></tr><tr><td>Investments in marketable securities</td><td>28,570</td><td>29,887</td></tr><tr><td>Tenant and other receivables</td><td>44,507</td><td>43,968</td></tr><tr><td>Related party receivables</td><td>34,657</td><td>21,121</td></tr><tr><td>Deferred rents receivable</td><td>302,791</td><td>283,011</td></tr><tr><td>Debt and preferred equity investments, net of discounts and deferred origination fees of $11,232 and $14,562 and allowances of $13,213 and $1,750 in 2020 and 2019, respectively</td><td>1,076,542</td><td>1,580,306</td></tr><tr><td>Investments in unconsolidated joint ventures</td><td>3,823,322</td><td>2,912,842</td></tr><tr><td>Deferred costs, net</td><td>177,168</td><td>205,283</td></tr><tr><td>Other assets</td><td>448,213</td><td>332,801</td></tr><tr><td>Total assets (1)</td><td>$ 11,707,567</td><td>$ 12,766,320</td></tr><tr><td>Liabilities</td><td></td><td></td></tr><tr><td>Mortgages and other loans payable, net</td><td>$ 1,979,972</td><td>$ 2,183,253</td></tr><tr><td>Revolving credit facility, net</td><td>105,262</td><td>234,013</td></tr><tr><td>Unsecured term loans, net</td><td>1,495,275</td><td>1,494,024</td></tr><tr><td>Unsecured notes, net</td><td>1,248,219</td><td>1,496,847</td></tr><tr><td>Accrued interest payable</td><td>14,825</td><td>22,148</td></tr><tr><td>Other liabilities</td><td>302,798</td><td>177,080</td></tr><tr><td>Accounts payable and accrued expenses</td><td>151,309</td><td>166,905</td></tr><tr><td>Deferred revenue</td><td>118,572</td><td>114,052</td></tr><tr><td>Lease liability - financing leases</td><td>152,521</td><td>44,448</td></tr><tr><td>Lease liability - operating leases</td><td>339,458</td><td>381,671</td></tr><tr><td>Dividend and distributions payable</td><td>149,294</td><td>79,282</td></tr><tr><td>Security deposits</td><td>53,836</td><td>62,252</td></tr><tr><td>Liabilities related to assets held for sale</td><td>—</td><td>—</td></tr><tr><td>Junior subordinated deferrable interest debentures held by trusts that issued trust preferred securities</td><td>100,000</td><td>100,000</td></tr><tr><td>Total liabilities (1)</td><td>6,211,341</td><td>6,555,975</td></tr><tr><td>Commitments and contingencies</td><td></td><td></td></tr><tr><td>Limited partner interests in SLGOP (3,939 and 4,196 limited partner common units outstanding at December 31, 2020 and 2019, respectively)</td><td>358,262</td><td>409,862</td></tr><tr><td>Preferred units</td><td>202,169</td><td>283,285</td></tr></table>



# SL Green Operating Partnership, L.P.
Consolidated Balance Sheets
(in thousands, except per unit data)

<table><tr><td></td><td>December 31, 2020</td><td>December 31, 2019</td></tr><tr><td>Capital</td><td></td><td></td></tr><tr><td>SLGOP partners&#x27; capital:</td><td></td><td></td></tr><tr><td>Series I Preferred Units, $25.00 liquidation preference, 9,200 issued and outstanding at both December 31, 2020 and 2019</td><td>221,932</td><td>221,932</td></tr><tr><td>SL Green partners&#x27; capital (724 and 812 general partner common units, and 67,784 and 76,145 limited partner common units outstanding at December 31, 2020 and 2019, respectively)</td><td>4,755,078</td><td>5,247,868</td></tr><tr><td>Accumulated other comprehensive loss</td><td>(67,247)</td><td>(28,485)</td></tr><tr><td>Total SLGOP partners&#x27; capital</td><td>4,909,763</td><td>5,441,315</td></tr><tr><td>Noncontrolling interests in other partnerships</td><td>26,032</td><td>75,883</td></tr><tr><td>Total capital</td><td>4,935,795</td><td>5,517,198</td></tr><tr><td>Total liabilities and capital</td><td>$11,707,567</td><td>$12,766,320</td></tr></table>

(1) The Operating Partnership's consolidated balance sheets include assets and liabilities of consolidated variable interest entities ("VIEs"). See Note 2. The consolidated balance sheets include the following amounts related to our consolidated VIEs, excluding the Operating Partnership: $41.2 million and $205.2 million of land, $57.9 million and $481.9 million of building and improvements, $2.0 million and $2.0 million of building and leasehold improvements, $37.8 million and $61.7 million of right of use assets, $10.3 million and $17.6 million of accumulated depreciation, $289.5 million and $169.5 million of other assets included in other line items, $94.0 million and $457.1 million of real estate debt, net, $0.7 million and $1.2 million of accrued interest payable, $29.9 million and $57.7 million of lease liabilities, and $56.6 million and $43.7 million of other liabilities included in other line items as of December 31, 2020 and December 31, 2019, respectively.

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



# SL Green Operating Partnership, L.P.
Consolidated Statements of Operations
(in thousands, except per unit data)

<table><tr><td rowspan="2"></td><td colspan="3">Year Ended December 31,</td></tr><tr><td>2020</td><td>2019</td><td>2018</td></tr><tr><td>Revenues</td><td></td><td></td><td></td></tr><tr><td>Rental revenue, net</td><td>$ 804,423</td><td>$ 983,557</td><td>$ 978,574</td></tr><tr><td>Investment income</td><td>120,163</td><td>195,590</td><td>201,492</td></tr><tr><td>Other income</td><td>128,158</td><td>59,848</td><td>47,326</td></tr><tr><td>Total revenues</td><td>1,052,744</td><td>1,238,995</td><td>1,227,392</td></tr><tr><td>Expenses</td><td></td><td></td><td></td></tr><tr><td>Operating expenses, including $12,643 in 2020, $18,106 in 2019, $17,823 in 2018 of related party expenses</td><td>183,200</td><td>234,676</td><td>229,347</td></tr><tr><td>Real estate taxes</td><td>176,315</td><td>190,764</td><td>186,351</td></tr><tr><td>Operating lease rent</td><td>29,043</td><td>33,188</td><td>32,965</td></tr><tr><td>Interest expense, net of interest income</td><td>116,679</td><td>190,521</td><td>208,669</td></tr><tr><td>Amortization of deferred financing costs</td><td>11,794</td><td>11,653</td><td>12,408</td></tr><tr><td>Depreciation and amortization</td><td>313,668</td><td>272,358</td><td>279,507</td></tr><tr><td>Loan loss and other investment reserves, net of recoveries</td><td>35,298</td><td>—</td><td>6,839</td></tr><tr><td>Transaction related costs</td><td>503</td><td>729</td><td>1,099</td></tr><tr><td>Marketing, general and administrative</td><td>91,826</td><td>100,875</td><td>92,631</td></tr><tr><td>Total expenses</td><td>958,326</td><td>1,034,764</td><td>1,049,816</td></tr><tr><td>Equity in net (loss) income from unconsolidated joint ventures</td><td>(25,195)</td><td>(34,518)</td><td>7,311</td></tr><tr><td>Equity in net gain on sale of interest in unconsolidated joint venture/real estate</td><td>2,961</td><td>76,181</td><td>303,967</td></tr><tr><td>Purchase price and other fair value adjustment</td><td>187,522</td><td>69,389</td><td>57,385</td></tr><tr><td>Gain (loss) on sale of real estate, net</td><td>215,506</td><td>(16,749)</td><td>(30,757)</td></tr><tr><td>Depreciable real estate reserves and impairments</td><td>(60,454)</td><td>(7,047)</td><td>(227,543)</td></tr><tr><td>Loss on early extinguishment of debt</td><td>—</td><td>—</td><td>(17,083)</td></tr><tr><td>Net income</td><td>414,758</td><td>291,487</td><td>270,856</td></tr><tr><td>Net loss attributable to noncontrolling interests in other partnerships</td><td>(14,940)</td><td>3,159</td><td>6</td></tr><tr><td>Preferred unit distributions</td><td>(8,747)</td><td>(10,911)</td><td>(11,384)</td></tr><tr><td>Net income attributable to SLGOP</td><td>391,071</td><td>283,735</td><td>259,478</td></tr><tr><td>Perpetual preferred stock dividends</td><td>(14,950)</td><td>(14,950)</td><td>(14,950)</td></tr><tr><td>Net income attributable to SLGOP common unitholders</td><td>$ 376,121</td><td>$ 268,785</td><td>$ 244,528</td></tr><tr><td>Basic earnings per unit:</td><td>$ 4.88</td><td>$ 3.19</td><td>$ 2.75</td></tr><tr><td>Diluted earnings per unit:</td><td>$ 4.87</td><td>$ 3.19</td><td>$ 2.75</td></tr><tr><td>Basic weighted average common units outstanding</td><td>76,647</td><td>83,690</td><td>88,652</td></tr><tr><td>Diluted weighted average common units and common unit equivalents outstanding</td><td>77,243</td><td>84,234</td><td>89,071</td></tr></table>

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



# SL Green Operating Partnership, L.P.
Consolidated Statements of Comprehensive Income
(in thousands)

<table><tr><td rowspan="2"></td><td colspan="4">Year Ended December 31,</td></tr><tr><td>2020</td><td colspan="2">2019</td><td>2018</td></tr><tr><td>Net income</td><td>$     414,758</td><td>$     291,487</td><td>$     270,856</td><td></td></tr><tr><td>Other comprehensive loss:</td><td></td><td></td><td></td><td></td></tr><tr><td>(Decrease) increase in unrealized value of derivative instruments, including SLGOP&#x27;s share of joint venture derivative instruments</td><td>(39,743)</td><td>(47,118)</td><td>(3,622)</td><td></td></tr><tr><td>(Decrease) increase in unrealized value of marketable securities</td><td>(1,318)</td><td>1,249</td><td>60</td><td></td></tr><tr><td>Other comprehensive loss</td><td>(41,061)</td><td>(45,869)</td><td>(3,562)</td><td></td></tr><tr><td>Comprehensive income</td><td>373,697</td><td>245,618</td><td>267,294</td><td></td></tr><tr><td>Net loss attributable to noncontrolling interests</td><td>(14,940)</td><td>3,159</td><td>6</td><td></td></tr><tr><td>Other comprehensive loss attributable to noncontrolling interests</td><td>2,299</td><td>2,276</td><td>66</td><td></td></tr><tr><td>Comprehensive income attributable to SLGOP</td><td>$     361,056</td><td>$     251,053</td><td>$     267,366</td><td></td></tr></table>

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



## SL Green Operating Partnership, L.P.
Consolidated Statements of Capital
(in thousands, except per unit data)

<table><tr><td rowspan="3"></td><td colspan="7">SL Green Operating Partnership Unitholders</td></tr><tr><td colspan="3">Partners&#x27; Interest</td><td rowspan="2">Accumulated Other Comprehensive (Loss) Income</td><td rowspan="2">Noncontrolling Interests</td><td rowspan="2">Total</td><td></td></tr><tr><td>Series I Preferred Units</td><td>Common Units (1)</td><td>Common Unitholders</td><td></td></tr><tr><td>Balance at December 31, 2017</td><td>$ 221,932</td><td>90,172</td><td>$ 5,984,557</td><td>$ 18,604</td><td>$ 364,361</td><td>$ 6,589,454</td><td></td></tr><tr><td>Cumulative adjustment upon adoption of ASC 610-20</td><td></td><td></td><td>570,524</td><td></td><td></td><td>570,524</td><td></td></tr><tr><td>Balance at January 1, 2018</td><td>$ 221,932</td><td>90,172</td><td>$ 6,555,081</td><td>$ 18,604</td><td>$ 364,361</td><td>$ 7,159,978</td><td></td></tr><tr><td>Net income (loss)</td><td></td><td></td><td>247,262</td><td></td><td>(6)</td><td>247,256</td><td></td></tr><tr><td>Other comprehensive loss</td><td></td><td></td><td></td><td>(3,496)</td><td></td><td>(3,496)</td><td></td></tr><tr><td>Preferred dividends</td><td></td><td></td><td>(14,950)</td><td></td><td></td><td>(14,950)</td><td></td></tr><tr><td>DRSPP proceeds</td><td></td><td>1</td><td>136</td><td></td><td></td><td>136</td><td></td></tr><tr><td>Conversion of common units</td><td></td><td>155</td><td>16,303</td><td></td><td></td><td>16,303</td><td></td></tr><tr><td>Reallocation of noncontrolling interests in the operating partnership</td><td></td><td></td><td>34,236</td><td></td><td></td><td>34,236</td><td></td></tr><tr><td>Deferred compensation plan and stock awards, net of forfeitures and tax withholdings</td><td></td><td>145</td><td>17,484</td><td></td><td></td><td>17,484</td><td></td></tr><tr><td>Repurchases of common units</td><td></td><td>(9,469)</td><td>(937,795)</td><td></td><td></td><td>(937,795)</td><td></td></tr><tr><td>Proceeds from stock options exercised</td><td></td><td>307</td><td>$ 28,912</td><td></td><td></td><td>28,912</td><td></td></tr><tr><td>Contributions to consolidated joint venture interests</td><td></td><td></td><td></td><td></td><td>5,459</td><td>5,459</td><td></td></tr><tr><td>Deconsolidation of partially owned entity</td><td></td><td></td><td></td><td></td><td>(315,116)</td><td>(315,116)</td><td></td></tr><tr><td>Distributions to noncontrolling interests</td><td></td><td></td><td></td><td></td><td>(8,364)</td><td>(8,364)</td><td></td></tr><tr><td>Cash distributions declared ($3.3834 per common unit, none of which represented a return of capital for federal income tax purposes)</td><td></td><td></td><td>(282,188)</td><td></td><td></td><td>(282,188)</td><td></td></tr><tr><td>Balance at December 31, 2018</td><td>$ 221,932</td><td>81,311</td><td>$ 5,664,481</td><td>$ 15,108</td><td>$ 46,334</td><td>$ 5,947,855</td><td></td></tr><tr><td>Net income (loss)</td><td></td><td></td><td>270,434</td><td></td><td>(3,159)</td><td>267,275</td><td></td></tr><tr><td>Acquisition of subsidiary interest from noncontrolling interest</td><td></td><td></td><td>(569)</td><td></td><td>(25,276)</td><td>(25,845)</td><td></td></tr><tr><td>Other comprehensive loss</td><td></td><td></td><td></td><td>(43,593)</td><td></td><td>(43,593)</td><td></td></tr><tr><td>Preferred dividends</td><td></td><td></td><td>(14,950)</td><td></td><td></td><td>(14,950)</td><td></td></tr><tr><td>DRSPP proceeds</td><td></td><td>4</td><td>334</td><td></td><td></td><td>334</td><td></td></tr><tr><td>Conversion of common units</td><td></td><td>5</td><td>471</td><td></td><td></td><td>471</td><td></td></tr><tr><td>Reallocation of noncontrolling interest in the Operating Partnership</td><td></td><td></td><td>(34,320)</td><td></td><td></td><td>(34,320)</td><td></td></tr><tr><td>Deferred compensation plan and stock awards, net of forfeitures and tax withholdings</td><td></td><td>102</td><td>25,763</td><td></td><td></td><td>25,763</td><td></td></tr><tr><td>Repurchases of common units</td><td></td><td>(4,466)</td><td>(384,399)</td><td></td><td></td><td>(384,399)</td><td></td></tr><tr><td>Contributions to consolidated joint venture interests</td><td></td><td></td><td></td><td></td><td>58,462</td><td>58,462</td><td></td></tr><tr><td>Distributions to noncontrolling interests</td><td></td><td></td><td></td><td></td><td>(478)</td><td>(478)</td><td></td></tr><tr><td>Cash distributions declared ($3.5352 per common unit, none of which represented a return of capital for federal income tax purposes)</td><td></td><td></td><td>(279,377)</td><td></td><td></td><td>(279,377)</td><td></td></tr><tr><td>Balance at December 31, 2019</td><td>$ 221,932</td><td>76,956</td><td>$ 5,247,868</td><td>$ (28,485)</td><td>$ 75,883</td><td>$ 5,517,198</td><td></td></tr><tr><td>Cumulative adjustment upon adoption of ASC 326</td><td></td><td></td><td>(39,184)</td><td></td><td></td><td>(39,184)</td><td></td></tr><tr><td>Balance at January 1, 2020</td><td>$ 221,932</td><td>76,956</td><td>$ 5,208,684</td><td>$ (28,485)</td><td>$ 75,883</td><td>$ 5,478,014</td><td></td></tr><tr><td>Net income</td><td></td><td></td><td>371,055</td><td></td><td>14,940</td><td>385,995</td><td></td></tr><tr><td>Acquisition of subsidiary interest from noncontrolling interest</td><td></td><td></td><td>(3,123)</td><td></td><td>1,587</td><td>(1,536)</td><td></td></tr><tr><td>Other comprehensive loss</td><td></td><td></td><td></td><td>(38,762)</td><td></td><td>(38,762)</td><td></td></tr><tr><td>Preferred dividends</td><td></td><td></td><td>(14,950)</td><td></td><td></td><td>(14,950)</td><td></td></tr><tr><td>DRSPP proceeds</td><td></td><td>17</td><td>1,006</td><td></td><td></td><td>1,006</td><td></td></tr><tr><td>Conversion of common units</td><td></td><td>98</td><td>8,744</td><td></td><td></td><td>8,744</td><td></td></tr><tr><td>Reallocation of noncontrolling interest in the Operating Partnership</td><td></td><td></td><td>32,598</td><td></td><td></td><td>32,598</td><td></td></tr><tr><td>Deferred compensation plan and stock awards, net of forfeitures and tax withholdings</td><td></td><td>(34)</td><td>25,271</td><td></td><td></td><td>25,271</td><td></td></tr><tr><td>Repurchases of common units</td><td></td><td>(8,529)</td><td>(532,262)</td><td></td><td></td><td>(532,262)</td><td></td></tr><tr><td>Contributions to consolidated joint venture interests</td><td></td><td></td><td></td><td></td><td>12,477</td><td>12,477</td><td></td></tr><tr><td>Distributions to noncontrolling interests</td><td></td><td></td><td></td><td></td><td>(78,855)</td><td>(78,855)</td><td></td></tr><tr><td>Cash distributions declared ($4.7908 per common unit, none of which represented a return of capital for federal income tax purposes)</td><td></td><td></td><td>(341,945)</td><td></td><td></td><td>(341,945)</td><td></td></tr><tr><td>Balance at December 31, 2020</td><td>$ 221,932</td><td>68,508</td><td>$ 4,755,078</td><td>$ (67,247)</td><td>$ 26,032</td><td>$ 4,935,795</td><td></td></tr></table>



# SL Green Operating Partnership, L.P.
Consolidated Statements of Capital
(in thousands, except per unit data)

(1) On January 21, 2021, we completed a reverse stock split whereby every 1.02918 SL Green Operating Partnership common unit was combined into 1 SL Green Operating Partnership common unit. We have retroactively adjusted the outstanding unit counts, unit activity, cash distributions declared, and earnings per units, as if the reverse split occurred on December 31, 2017.



## SL Green Operating Partnership, L.P.
Consolidated Statements of Cash Flows
(in thousands)

<table><tr><td rowspan="2"></td><td colspan="3">Year Ended December 31,</td></tr><tr><td>2020</td><td>2019</td><td>2018</td></tr><tr><td>Operating Activities</td><td></td><td></td><td></td></tr><tr><td>Net income</td><td>$ 414,758</td><td>$ 291,487</td><td>$ 270,856</td></tr><tr><td>Adjustments to reconcile net income to net cash provided by operating activities:</td><td></td><td></td><td></td></tr><tr><td>Depreciation and amortization</td><td>325,462</td><td>284,011</td><td>289,899</td></tr><tr><td>Equity in net loss (income) from unconsolidated joint ventures</td><td>25,195</td><td>34,518</td><td>(7,311)</td></tr><tr><td>Distributions of cumulative earnings from unconsolidated joint ventures</td><td>679</td><td>864</td><td>10,277</td></tr><tr><td>Equity in net gain on sale of interest in unconsolidated joint venture interest/real estate</td><td>(2,961)</td><td>(76,181)</td><td>(303,967)</td></tr><tr><td>Purchase price and other fair value adjustments</td><td>(187,522)</td><td>(69,389)</td><td>(57,385)</td></tr><tr><td>Depreciable real estate reserves and impairments</td><td>60,454</td><td>7,047</td><td>227,543</td></tr><tr><td>(Gain) loss on sale of real estate, net</td><td>(215,506)</td><td>16,749</td><td>30,757</td></tr><tr><td>Loan loss reserves and other investment reserves, net of recoveries</td><td>35,298</td><td>—</td><td>6,839</td></tr><tr><td>Loss on early extinguishment of debt</td><td>—</td><td>—</td><td>17,083</td></tr><tr><td>Deferred rents receivable</td><td>(7,582)</td><td>(13,941)</td><td>(18,216)</td></tr><tr><td>Non-cash lease expense</td><td>11,984</td><td>13,744</td><td>2,016</td></tr><tr><td>Other non-cash adjustments</td><td>15,178</td><td>271</td><td>2,932</td></tr><tr><td>Changes in operating assets and liabilities:</td><td></td><td></td><td></td></tr><tr><td>Tenant and other receivables</td><td>(17,074)</td><td>(4,968)</td><td>6,968</td></tr><tr><td>Related party receivables</td><td>1,451</td><td>7,802</td><td>(1,044)</td></tr><tr><td>Deferred lease costs</td><td>(20,900)</td><td>(70,938)</td><td>(44,158)</td></tr><tr><td>Other assets</td><td>(26,137)</td><td>(18,630)</td><td>(8,310)</td></tr><tr><td>Accounts payable, accrued expenses, other liabilities and security deposits</td><td>132,171</td><td>(25,597)</td><td>4,410</td></tr><tr><td>Deferred revenue</td><td>20,657</td><td>10,824</td><td>12,348</td></tr><tr><td>Change in lease liability - operating leases</td><td>(11,369)</td><td>(11,200)</td><td>—</td></tr><tr><td>Net cash provided by operating activities</td><td>554,236</td><td>376,473</td><td>441,537</td></tr><tr><td>Investing Activities</td><td></td><td></td><td></td></tr><tr><td>Acquisitions of real estate property</td><td>$ (86,846)</td><td>$ (262,591)</td><td>$ (60,486)</td></tr><tr><td>Additions to land, buildings and improvements</td><td>(458,140)</td><td>(252,986)</td><td>(254,460)</td></tr><tr><td>Acquisition deposits and deferred purchase price</td><td>—</td><td>(5,239)</td><td>—</td></tr><tr><td>Investments in unconsolidated joint ventures</td><td>(70,315)</td><td>(128,682)</td><td>(400,429)</td></tr><tr><td>Distributions in excess of cumulative earnings from unconsolidated joint ventures</td><td>124,572</td><td>79,020</td><td>233,118</td></tr><tr><td>Net proceeds from disposition of real estate/joint venture interest</td><td>1,112,382</td><td>208,302</td><td>1,231,004</td></tr><tr><td>Other investments</td><td>32,479</td><td>(7,869)</td><td>(38,912)</td></tr><tr><td>Origination of debt and preferred equity investments</td><td>(360,953)</td><td>(607,844)</td><td>(731,216)</td></tr><tr><td>Repayments or redemption of debt and preferred equity investments</td><td>763,251</td><td>1,092,383</td><td>703,043</td></tr><tr><td>Net cash provided by investing activities</td><td>1,056,430</td><td>114,494</td><td>681,662</td></tr></table>



## SL Green Operating Partnership, L.P.
Consolidated Statements of Cash Flows
(in thousands)

<table><tr><td rowspan="2"></td><td colspan="3">Year Ended December 31,</td></tr><tr><td>2020</td><td>2019</td><td>2018</td></tr><tr><td>Financing Activities</td><td></td><td></td><td></td></tr><tr><td>Proceeds from mortgages and other loans payable</td><td>$ 1,181,892</td><td>$ 752,984</td><td>$ 564,391</td></tr><tr><td>Repayments of mortgages and other loans payable</td><td>(1,186,828)</td><td>(230,076)</td><td>(868,842)</td></tr><tr><td>Proceeds from revolving credit facility and senior unsecured notes</td><td>1,495,000</td><td>1,310,000</td><td>3,120,000</td></tr><tr><td>Repayments of revolving credit facility and senior unsecured notes</td><td>(1,875,000)</td><td>(1,570,000)</td><td>(2,560,000)</td></tr><tr><td>Payment of debt extinguishment costs</td><td>—</td><td>—</td><td>(13,918)</td></tr><tr><td>Proceeds from stock options exercised and DRSPP issuance</td><td>1,006</td><td>334</td><td>29,048</td></tr><tr><td>Repurchase of common units</td><td>(528,483)</td><td>(384,399)</td><td>(979,541)</td></tr><tr><td>Redemption of preferred units</td><td>(82,750)</td><td>(18,142)</td><td>(1,208)</td></tr><tr><td>Redemption of OP units</td><td>(27,342)</td><td>(27,495)</td><td>(33,972)</td></tr><tr><td>Distributions to noncontrolling interests in other partnerships</td><td>(85,468)</td><td>(478)</td><td>(8,364)</td></tr><tr><td>Contributions from noncontrolling interests in other partnerships</td><td>12,477</td><td>10,239</td><td>5,459</td></tr><tr><td>Acquisition of subsidiary interest from noncontrolling interest</td><td>(1,536)</td><td>(25,845)</td><td>—</td></tr><tr><td>Distributions paid on common and preferred units</td><td>(306,648)</td><td>(321,115)</td><td>(328,230)</td></tr><tr><td>Other obligations related to mortgage loan participations</td><td>—</td><td>—</td><td>16</td></tr><tr><td>Tax withholdings related to restricted share awards</td><td>(4,752)</td><td>(3,495)</td><td>(3,842)</td></tr><tr><td>Deferred loan costs</td><td>(70,036)</td><td>(21,162)</td><td>(15,109)</td></tr><tr><td>Principal payments of on financing lease liabilities</td><td>(833)</td><td>—</td><td>—</td></tr><tr><td>Net cash used in financing activities</td><td>(1,479,301)</td><td>(528,650)</td><td>(1,094,112)</td></tr><tr><td>Net increase (decrease) in cash, cash equivalents, and restricted cash</td><td>131,365</td><td>(37,683)</td><td>29,087</td></tr><tr><td>Cash, cash equivalents, and restricted cash at beginning of year</td><td>241,430</td><td>279,113</td><td>250,026</td></tr><tr><td>Cash, cash equivalents, and restricted cash at end of period</td><td>$ 372,795</td><td>$ 241,430</td><td>$ 279,113</td></tr><tr><td>Supplemental cash flow disclosures:</td><td></td><td></td><td></td></tr><tr><td>Interest paid</td><td>$ 201,348</td><td>$ 248,684</td><td>$ 259,776</td></tr><tr><td>Income taxes paid</td><td>$ 2,296</td><td>$ 1,489</td><td>$ 1,418</td></tr><tr><td>Supplemental Disclosure of Non-Cash Investing and Financing Activities:</td><td></td><td></td><td></td></tr><tr><td>Conversion of units in the Operating Partnership</td><td>$ 8,744</td><td>$ 471</td><td>$ 16,303</td></tr><tr><td>Redemption of units in the Operating Partnership for a joint venture sale</td><td>—</td><td>—</td><td>10,445</td></tr><tr><td>Exchange of preferred equity investment for real estate or equity in joint venture</td><td>119,497</td><td>—</td><td>—</td></tr><tr><td>Exchange of debt investment for real estate or equity in joint venture</td><td>122,796</td><td>34,498</td><td>298,956</td></tr><tr><td>Issuance of preferred units relating to a real estate acquisition</td><td>—</td><td>1,000</td><td>—</td></tr><tr><td>Tenant improvements and capital expenditures payable</td><td>1,665</td><td>6,056</td><td>—</td></tr><tr><td>Fair value adjustment to noncontrolling interest in the Operating Partnership</td><td>32,598</td><td>34,320</td><td>34,236</td></tr><tr><td>Deconsolidation of a subsidiary</td><td>854,437</td><td>395</td><td>298,404</td></tr><tr><td>Deconsolidation of a subsidiary mortgage</td><td>5,593</td><td>—</td><td>—</td></tr><tr><td>Mortgages assumed in connection with sale of real estate</td><td>250,000</td><td>—</td><td>—</td></tr><tr><td>Seller financed purchases</td><td>100,000</td><td>—</td><td>—</td></tr><tr><td>Debt and preferred equity investments</td><td>9,014</td><td>—</td><td>—</td></tr><tr><td>Transfer of assets related to assets held for sale</td><td>—</td><td>391,664</td><td>—</td></tr><tr><td>Reversal of assets held for sale</td><td>391,664</td><td>—</td><td>—</td></tr><tr><td>Transfer of liabilities related to assets held for sale</td><td>—</td><td>—</td><td>—</td></tr><tr><td>Removal of fully depreciated commercial real estate properties</td><td>66,169</td><td>19,577</td><td>124,249</td></tr></table>



# SL Green Operating Partnership, L.P.
Consolidated Statements of Cash Flows
(in thousands)

<table><tr><td rowspan="2"></td><td colspan="3">Year Ended December 31,</td></tr><tr><td>2020</td><td>2019</td><td>2018</td></tr><tr><td>Contribution to consolidated joint venture by noncontrolling interest</td><td>—</td><td>48,223</td><td>—</td></tr><tr><td>Distributions to noncontrolling interests</td><td>6,613</td><td>—</td><td>—</td></tr><tr><td>Share repurchase payable</td><td>3,779</td><td>—</td><td>—</td></tr><tr><td>Recognition of sales-type leases and related lease liabilities</td><td>119,725</td><td>—</td><td>—</td></tr><tr><td>Recognition of right of use assets and related lease liabilities</td><td>61,990</td><td>389,120</td><td>—</td></tr></table>

In December 2020, the Operating Partnership declared a regular monthly distribution per unit of $0.3122 and a special distribution per unit of $1.7462 that was paid primarily in units. These distributions were paid in January 2021. In December 2019 and 2018, the Operating Partnership declared quarterly distributions per unit of $0.9108 and $0.8748, respectively. These distributions were paid in January 2020 and 2019, respectively. These distribution amounts have been retroactively adjusted to reflect the reverse stock split that was effectuated in January 2021.

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

<table><tr><td rowspan="2"></td><td colspan="4">Year Ended</td></tr><tr><td>2020</td><td>2019</td><td>2018</td><td></td></tr><tr><td>Cash and cash equivalents</td><td>$ 266,059</td><td>$ 166,070</td><td>$ 129,475</td><td></td></tr><tr><td>Restricted cash</td><td>106,736</td><td>75,360</td><td>149,638</td><td></td></tr><tr><td>Total cash, cash equivalents, and restricted cash</td><td>$ 372,795</td><td>$ 241,430</td><td>$ 279,113</td><td></td></tr></table>

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



# SL Green Realty Corp. and SL Green Operating Partnership, L.P.
Notes to Consolidated Financial Statements
December 31, 2020

## 1. Organization and Basis of Presentation

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

Substantially all of our assets are held by, and all of our operations are conducted through, the Operating Partnership. The Company is the sole managing general partner of the Operating Partnership. As of December 31, 2020, noncontrolling investors held, in the aggregate, a 5.44% limited partnership interest in the Operating Partnership, inclusive of retroactive adjustments to reflect the reverse stock split effectuated by SL Green in January 2021. We refer to these interests as the noncontrolling interests in the Operating Partnership. The Operating Partnership is considered a variable interest entity, or VIE, in which we are the primary beneficiary. See Note 11, "Noncontrolling Interests on the Company's Consolidated Financial Statements."

As of December 31, 2020, we owned the following interests in properties in the New York metropolitan area, primarily in midtown Manhattan. Our investments located outside of Manhattan are referred to as the Suburban properties:

<table><tr><td rowspan="2">Location</td><td rowspan="2">Property Type</td><td colspan="2">Consolidated</td><td colspan="2">Unconsolidated</td><td colspan="2">Total</td><td rowspan="2">Weighted Average Occupancy(1) (unaudited)</td></tr><tr><td>Number of Properties</td><td>Approximate Square Feet (unaudited)</td><td>Number of Properties</td><td>Approximate Square Feet (unaudited)</td><td>Number of Projects</td><td>Approximate Square Feet (unaudited)</td></tr><tr><td>Commercial:</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td rowspan="4">Manhattan</td><td>Office</td><td>18</td><td>10,681,045</td><td>11</td><td>11,841,483</td><td>29</td><td>22,522,528</td><td>92.4%</td></tr><tr><td>Retail</td><td>4</td><td>44,189</td><td>9</td><td>301,996</td><td>13</td><td>346,185</td><td>94.2%</td></tr><tr><td>Development/ Redevelopment</td><td>8</td><td>1,095,418</td><td>3</td><td>2,927,782</td><td>11</td><td>4,023,200</td><td>N/A</td></tr><tr><td></td><td>30</td><td>11,820,652</td><td>23</td><td>15,071,261</td><td>53</td><td>26,891,913</td><td>92.5%</td></tr><tr><td>Suburban</td><td>Office</td><td>7</td><td>862,800</td><td>—</td><td>—</td><td>7</td><td>862,800</td><td>83.3%</td></tr><tr><td>Total commercial properties</td><td></td><td>37</td><td>12,683,452</td><td>23</td><td>15,071,261</td><td>60</td><td>27,754,713</td><td>92.1%</td></tr><tr><td>Residential:</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Manhattan</td><td>Residential</td><td>1</td><td>82,250</td><td>8</td><td>1,663,774</td><td>9</td><td>1,746,024</td><td>75.7%</td></tr><tr><td>Total portfolio</td><td></td><td>38</td><td>12,765,702</td><td>31</td><td>16,735,035</td><td>69</td><td>29,500,737</td><td>91.2%</td></tr></table>

(1) The weighted average occupancy for commercial properties represents the total occupied square footage divided by the total square footage at acquisition. The weighted average occupancy for residential properties represents the total occupied units divided by the total available units.

As of December 31, 2020, we also managed two office buildings owned by third parties encompassing approximately 2.1 million square feet (unaudited) and held debt and preferred equity investments with a book value of $1.1 billion, excluding $0.1 billion of debt and preferred equity investments and other financing receivables that are included in balance sheet line items other than the Debt and Preferred Equity Investments line item.



# SL Green Realty Corp. and SL Green Operating Partnership, L.P.
Notes to Consolidated Financial Statements (cont.)
December 31, 2020

## Partnership Agreement

In accordance with the partnership agreement of the Operating Partnership, or the Operating Partnership Agreement, we allocate all distributions and profits and losses in proportion to the percentage of ownership interests of the respective partners, subject to the priority distributions with respect to preferred units and special provisions that apply to LTIP Units. As the managing general partner of the Operating Partnership, we are required to take such reasonable efforts, as determined by us in our sole discretion, to cause the Operating Partnership to distribute sufficient amounts to enable the payment of sufficient dividends by us to minimize any Federal income or excise tax at the Company level. Under the Operating Partnership Agreement, each limited partner has the right to redeem units of limited partnership interests for cash, or if we so elect, shares of SL Green's common stock on a one-for-one basis.

## Subsequent Events

On December 4, 2020 our Board of Directors declared an ordinary dividend and a special dividend (together, "the Total Dividend"). The Total Dividend was paid on January 15, 2021 to shareholders of record at the close of business on December 15, 2020 ("the Record Date"). Shareholders had the opportunity to elect to receive the Total Dividend in the form of all cash or all stock, subject to proration if either option was oversubscribed.

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

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

In January 2021, the Company closed on the sale of 712 Madison Avenue for a gross sales price of $43.0 million, pursuant to the exercise of a purchase option by the ground lessee of the property.

## 2. Significant Accounting Policies

## Principles of Consolidation

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

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

A noncontrolling interest in a consolidated subsidiary is defined as the portion of the equity (net assets) in a subsidiary not attributable, directly or indirectly, to us. Noncontrolling interests are required to be presented as a separate component of equity in the consolidated balance sheet and the presentation of net income is modified to present earnings and other comprehensive income attributed to controlling and noncontrolling interests.

We assess the accounting treatment for each joint venture and debt and preferred equity investment. This assessment includes a review of each joint venture or limited liability company agreement to determine the rights provided to each party and whether those rights are protective or participating. For all VIEs, we review such agreements in order to determine which party has the power to direct the activities that most significantly impact the entity's economic performance. In situations where we and our partner approve, among other things, the annual budget, receive a detailed monthly reporting package, meet on a quarterly basis to review the results of the joint venture, review and approve the joint venture's tax return before filing, and approve all leases that cover more than a nominal amount of space relative to the total rentable space at each property, we do



# SL Green Realty Corp. and SL Green Operating Partnership, L.P.
Notes to Consolidated Financial Statements (cont.)
December 31, 2020

not consolidate the joint venture as we consider these to be substantive participation rights that result in shared power of the activities that most significantly impact the performance of the joint venture. Our joint venture agreements typically contain certain protective rights such as requiring partner approval to sell, finance or refinance the property and the payment of capital expenditures and operating expenditures outside of the approved budget or operating plan.

## Investment in Commercial Real Estate Properties

Real estate properties are presented at cost less accumulated depreciation and amortization. Costs directly related to the development or redevelopment of properties are capitalized. Ordinary repairs and maintenance are expensed as incurred; major replacements and betterments, which improve or extend the life of the asset, are capitalized and depreciated over their estimated useful lives.

We recognize the assets acquired, liabilities assumed (including contingencies) and any noncontrolling interests in an acquired entity at their respective fair values on the acquisition date. When we acquire our partner's equity interest in an existing unconsolidated joint venture and gain control over the investment, we record the consolidated investment at fair value. The difference between the book value of our equity investment on the purchase date and our share of the fair value of the investment's purchase price is recorded as a purchase price fair value adjustment in our consolidated statements of operations. See Note 3, "Property Acquisitions."

We allocate the purchase price of real estate to land and building (inclusive of tenant improvements) and, if determined to be material, intangibles, such as the value of above- and below-market leases and origination costs associated with the in-place leases. We depreciate the amount allocated to building (inclusive of tenant improvements) over their estimated useful lives, which generally range from 3 years to 40 years. We amortize the amount allocated to the above- and below-market leases over the remaining term of the associated lease, which generally range from 1 year to 14 years, and record it as either an increase (in the case of below-market leases) or a decrease (in the case of above-market leases) to rental income. We amortize the amount allocated to the values associated with in-place leases over the expected term of the associated lease, which generally ranges from 1 year to 14 years. If a tenant vacates its space prior to the contractual termination of the lease and no rental payments are being made on the lease, any unamortized balance of the related intangible will be written off. The tenant improvements and origination costs are amortized as an expense over the remaining life of the lease (or charged against earnings if the lease is terminated prior to its contractual expiration date). We assess fair value of the leases based on estimated cash flow projections that utilize appropriate discount rates and available market information. Estimates of future cash flows are based on a number of factors including the historical operating results, known trends, and market/economic conditions that may affect the property. To the extent acquired leases contain fixed rate renewal options that are below-market and determined to be material, we amortize such below-market lease value into rental income over the renewal period. As of December 31, 2020, the weighted average amortization period for above-market leases, below-market leases, and in-place lease costs is 6.3 years, 5.6 years, and 5.3 years, respectively.

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

We incur a variety of costs in the development and leasing of our properties. After the determination is made to capitalize a cost, it is allocated to the specific component of a project that is benefited. Determination of when a development project is substantially complete and capitalization must cease involves a degree of judgment. The costs of land and building under development include specifically identifiable costs. The capitalized costs include, but are not limited to, pre-construction costs essential to the development of the property, development costs, construction costs, interest costs, real estate taxes, salaries and



# SL Green Realty Corp. and SL Green Operating Partnership, L.P.
Notes to Consolidated Financial Statements (cont.)
December 31, 2020

related costs and other costs incurred during the period of development. We consider a construction project as substantially completed and held available for occupancy upon the completion of tenant improvements, but no later than one year after major construction activity ceases. We cease capitalization on the portions substantially completed and occupied or held available for occupancy, and capitalize only those costs associated with the portions under construction.

Properties other than Right of use assets - operating leases are depreciated using the straight-line method over the estimated useful lives of the assets. The estimated useful lives are as follows:

<table><tr><td>Category</td><td>Term</td></tr><tr><td>Building (fee ownership)</td><td>40 years</td></tr><tr><td>Building improvements</td><td>shorter of remaining life of the building or useful life</td></tr><tr><td>Building (leasehold interest)</td><td>lesser of 40 years or remaining term of the lease</td></tr><tr><td>Right of use assets - financing leases</td><td>lesser of 40 years or remaining lease term</td></tr><tr><td>Furniture and fixtures</td><td>4 to 7 years</td></tr><tr><td>Tenant improvements</td><td>shorter of remaining term of the lease or useful life</td></tr></table>

Right of use assets - operating leases are amortized over the remaining lease term. The amortization is made up of the principal amortization under the lease liability plus or minus the straight line adjustment of the operating lease rent under ASC 840.

Depreciation expense (including amortization of right of use assets - financing leases) totaled $277.5 million, $233.5 million, and $242.8 million for the years ended December 31, 2020, 2019 and 2018, respectively.

On a periodic basis, we assess whether there are any indications that the value of our real estate properties may be impaired or that their carrying value may not be recoverable. A property's value is considered impaired if management's estimate of the aggregate future cash flows (undiscounted) to be generated by the property is less than the carrying value of the property. To the extent impairment has occurred, the loss will be measured as the excess of the carrying amount of the property over the fair value of the property as calculated in accordance with ASC 820.

We also evaluate our real estate properties for impairment when a property has been classified as held for sale. Real estate assets held for sale are valued at the lower of their carrying value or fair value less costs to sell and depreciation expense is no longer recorded.

We recognized $5.9 million, $4.5 million, and $6.8 million of rental revenue for the years ended December 31, 2020, 2019, and 2018, respectively, for the amortization of aggregate below-market leases in excess of above-market leases, resulting from the allocation of the purchase price of the applicable properties.

The following summarizes our identified intangible assets (acquired above-market leases and in-place leases) and intangible liabilities (acquired below-market leases) as of December 31, 2020 and 2019 (in thousands):

<table><tr><td rowspan="2"></td><td colspan="3">December 31,</td></tr><tr><td>2020</td><td>2019</td><td></td></tr><tr><td>Identified intangible assets (included in other assets):</td><td></td><td></td><td></td></tr><tr><td>Gross amount</td><td>$ 215,673</td><td>$ 255,198</td><td></td></tr><tr><td>Accumulated amortization</td><td>(190,523)</td><td>(228,223)</td><td></td></tr><tr><td>Net (1)</td><td>$ 25,150</td><td>$ 26,975</td><td></td></tr><tr><td>Identified intangible liabilities (included in deferred revenue):</td><td></td><td></td><td></td></tr><tr><td>Gross amount</td><td>$ 241,409</td><td>$ 282,048</td><td></td></tr><tr><td>Accumulated amortization</td><td>(230,479)</td><td>(249,514)</td><td></td></tr><tr><td>Net (1)</td><td>$ 10,930</td><td>$ 32,534</td><td></td></tr></table>

(1) As of December 31, 2020, no net intangible assets and no net intangible liabilities were reclassified to assets held for sale and liabilities related to assets held for sale. As of December 31, 2019, no net intangible assets and no net intangible liabilities were reclassified to assets held for sale and liabilities related to assets held for sale.



# SL Green Realty Corp. and SL Green Operating Partnership, L.P.
Notes to Consolidated Financial Statements (cont.)
December 31, 2020

The estimated annual amortization of acquired above-market leases, net of acquired (below-market) leases (a component of rental revenue), for each of the five succeeding years is as follows (in thousands):

<table><tr><td>2021</td><td>(1,403)</td></tr><tr><td>2022</td><td>(119)</td></tr><tr><td>2023</td><td>91</td></tr><tr><td>2024</td><td>258</td></tr><tr><td>2025</td><td>781</td></tr></table>

The estimated annual amortization of all other identifiable assets (a component of depreciation and amortization expense) including tenant improvements for each of the five succeeding years is as follows (in thousands):

<table><tr><td>2021</td><td>4,899</td></tr><tr><td>2022</td><td>3,456</td></tr><tr><td>2023</td><td>2,841</td></tr><tr><td>2024</td><td>2,520</td></tr><tr><td>2025</td><td>1,427</td></tr></table>

## Cash and Cash Equivalents

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

## Restricted Cash

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

## Fair Value Measurements

See Note 16, "Fair Value Measurements."

## Investment in Marketable Securities

At acquisition, we designate a security as held-to-maturity, available-for-sale, or trading. As of December 31, 2020, we did not have any securities designated as held-to-maturity or trading. We account for our available-for-sale securities at fair value pursuant to Accounting Standards Codification, or ASC, 820-10, with the net unrealized gains or losses reported as a component of accumulated other comprehensive income or loss. The cost of marketable securities sold and the amount reclassified out of accumulated other comprehensive income into earnings is determined using the specific identification method. Credit losses are recognized in accordance with ASC 326.

At December 31, 2020 and 2019, we held the following marketable securities (in thousands):

<table><tr><td rowspan="2"></td><td colspan="3">December 31,</td></tr><tr><td colspan="2">2020</td><td>2019</td></tr><tr><td>Commercial mortgage-backed securities</td><td>$</td><td>28,570</td><td>$</td></tr><tr><td>Total marketable securities available-for-sale</td><td>$</td><td>28,570</td><td>$</td></tr></table>

The cost basis of the commercial mortgage-backed securities was $27.5 million at both December 31, 2020 and 2019. These securities mature at various times through 2035. All were in an unrealized gain position at December 31, 2020 except for 1 security, which had an unrealized loss of $0.7 million, had been in a continuous unrealized loss position for less than 12 months, and had a fair value of $7.0 million. All were in an unrealized gain position at December 31, 2019. We held no equity marketable securities at December 31, 2020 and 2019.

During the years ended December 31, 2020, 2019 and 2018, we did not dispose of any marketable securities.



# SL Green Realty Corp. and SL Green Operating Partnership, L.P.
Notes to Consolidated Financial Statements (cont.)
December 31, 2020

## Investments in Unconsolidated Joint Ventures

We account for our investments in unconsolidated joint ventures under the equity method of accounting in cases where we exercise significant influence over, but do not control, these entities and are not considered to be the primary beneficiary. We consolidate those joint ventures that we control or which are variable interest entities (each, a "VIE") and where we are considered to be the primary beneficiary. In all these joint ventures, the rights of the joint venture partner are both protective as well as participating. Unless we are determined to be the primary beneficiary in a VIE, these participating rights preclude us from consolidating these VIE entities. These investments are recorded initially at cost, as investments in unconsolidated joint ventures, and subsequently adjusted for equity in net income (loss) and cash contributions and distributions. Equity in net income (loss) from unconsolidated joint ventures is allocated based on our ownership or economic interest in each joint venture and includes adjustments related to basis differences in accounting for the investment. When a capital event (as defined in each joint venture agreement) such as a refinancing occurs, if return thresholds are met, future equity income will be allocated at our increased economic interest. We recognize incentive income from unconsolidated real estate joint ventures as income to the extent it is earned and not subject to a clawback feature. Distributions we receive from unconsolidated real estate joint ventures in excess of our basis in the investment are recorded as offsets to our investment balance if we remain liable for future obligations of the joint venture or may otherwise be committed to provide future additional financial support. We generally finance our joint ventures with non-recourse debt. In certain cases we may provide guarantees or master leases for tenant space, which terminate upon the satisfaction of specified circumstances or repayment of the underlying loans.

We assess our investments in unconsolidated joint ventures for recoverability, and if it is determined that a loss in value of the investment is other than temporary, we write down the investment to its fair value. We evaluate our equity investments for impairment based on each joint ventures' actual and projected cash flows. We do not believe that the values of any of our equity investments were impaired at December 31, 2020.

We may originate loans for real estate acquisition, development and construction ("ADC loans"), where we expect to receive some of the residual profit from such projects. When the risk and rewards of these arrangements are essentially the same as an investor or joint venture partner, we account for these arrangements as real estate investments under the equity method of accounting for investments. Otherwise, we account for these arrangements consistent with the accounting for our debt and preferred equity investments.

## Deferred Lease Costs

Deferred lease costs consist of incremental fees and direct costs that would not have been incurred if the lease had not been obtained and are amortized on a straight-line basis over the related lease term. Certain of our employees provide leasing services to the wholly-owned properties. For the years ended December 31, 2020, 2019 and 2018, $5.4 million, $6.3 million, and $15.7 million of their compensation, respectively, was capitalized and is amortized over an estimated average lease term of eight years.

## Deferred Financing Costs

Deferred financing costs represent commitment fees, legal, title and other third party costs associated with obtaining commitments for financing which result in a closing of such financing. These costs are amortized over the terms of the respective agreements. Unamortized deferred financing costs are expensed when the associated debt is refinanced or repaid before maturity. Costs incurred in seeking financing transactions, which do not close, are expensed in the period in which it is determined that the financing will not close. Deferred financing costs related to a recognized debt liability are presented in the consolidated balance sheet as a direct deduction from the carrying amount of that debt liability.

## Lease Classification

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



# SL Green Realty Corp. and SL Green Operating Partnership, L.P.
Notes to Consolidated Financial Statements (cont.)
December 31, 2020

## Revenue Recognition

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

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

When management concludes that we are the owner of tenant improvements for accounting purposes, we record amounts funded to construct the tenant improvements as a capital asset. For these tenant improvements, we record amounts reimbursed by tenants as a reduction of the capital asset. When management concludes that the tenant is the owner of tenant improvements for accounting purposes, we record our contribution towards those improvements as a lease incentive, which is included in deferred costs, net on our consolidated balance sheets and amortized as a reduction to rental revenue on a straight-line basis over the term of the lease.

The excess of rents recognized over amounts contractually due pursuant to the underlying leases are included in deferred rents receivable on the consolidated balance sheets.

In addition to base rent, our tenants also generally will pay variable rent which represents their pro rata share of increases in real estate taxes and certain operating expenses for the building over a base year. In some leases, in lieu of paying additional rent based upon increases in certain building operating expenses, the tenant will pay additional rent based upon increases in the wage rate paid to porters over the porters' wage rate in effect during a base year or increases in the consumer price index over the index value in effect during a base year. In addition, many of our leases contain fixed percentage increases over the base rent to cover escalations. Electricity is most often supplied by the landlord either on a sub-metered basis, or rent inclusion basis (i.e., a fixed fee is included in the rent for electricity, which amount may increase based upon increases in electricity rates or increases in electrical usage by the tenant). Base building services other than electricity (such as heat, air conditioning and freight elevator service during business hours, and base building cleaning) are typically provided at no additional cost, with the tenant paying additional rent only for services which exceed base building services or for services which are provided outside normal business hours. These escalations are based on actual expenses incurred in the prior calendar year. If the expenses in the current year are different from those in the prior year, then during the current year, the escalations will be adjusted to reflect the actual expenses for the current year.

Rental revenue is recognized if collectability is probable. If collectability of substantially all of the lease payments is assessed as not probable, any difference between the rental revenue recognized to date and the lease payments that have been collected is recognized as a current-period adjustment to rental revenue. A subsequent change in the assessment of collectability to probable may result in a current-period adjustment to rental revenue for any difference between the rental revenue that would have been recognized if collectability had always been assessed as probable and the rental revenue recognized to date.

We recognize lease concessions related to COVID-19, such as rent deferrals and abatements, in accordance with the Lease Modification Q&A issued by the FASB in April 2020, which provides entities with the option to elect to account for lease concessions as though the enforceable rights and obligations existed in the original lease. This election is only available when total cash flows resulting from the modified lease are substantially similar to the cash flows in the original lease. When total cash flows resulting from the modified lease are not substantially similar to the cash flows in the original lease, we account for the concession agreement as a new lease.

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

Prior to the adoption of ASC 842, we maintained allowances for estimated losses on tenant receivables and deferred rent receivables under our lease agreements. During the year ended December 31, 2018 we had $4.2 million of additions to these allowances charged against operations and $8.9 million of uncollectible accounts written off or recovered within the period. The combined ending balance of the allowances was $31.2 million as of December 31, 2018.

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



# SL Green Realty Corp. and SL Green Operating Partnership, L.P.
Notes to Consolidated Financial Statements (cont.)
December 31, 2020

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

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

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

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

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

## Debt and Preferred Equity Investments

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

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

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

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



# SL Green Realty Corp. and SL Green Operating Partnership, L.P.
Notes to Consolidated Financial Statements (cont.)
December 31, 2020

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

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

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

## Rent Expense

Rent expense is recognized on a straight-line basis over the initial term of the lease. The excess of the rent expense recognized over the amounts contractually due pursuant to the underlying lease is included in the lease liability - operating leases on the consolidated balance sheets.

## Underwriting Commissions and Costs

Underwriting commissions and costs incurred in connection with our stock offerings are reflected as a reduction of additional paid-in-capital.

## Transaction Costs

Transaction costs for asset acquisitions are capitalized to the investment basis, which is then subject to a purchase price allocation based on relative fair value. Transaction costs for business combinations or costs incurred on potential transactions that are not consummated are expensed as incurred.

## Income Taxes

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

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

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

During the years ended December 31, 2020, 2019 and 2018, we recorded Federal, state and local tax provisions of $1.2 million, $1.5 million, and $2.8 million, respectively. For the year ended December 31, 2020, the Company paid distributions on its common stock of $5.54 per share which represented $1.84 per share of ordinary income and $3.06 per share of capital gains. For the year ended December 31, 2019, the Company paid distributions on its common stock of $3.40 per share which represented $2.59 per share of ordinary income, and $0.81 per share of capital gains. For the year ended December 31, 2018, the Company paid distributions on its common stock of $3.25 per share which represented $1.46 per share of ordinary income and $1.79 per share of capital gains. In order to present information that is consistent with the tax forms issued with respect to these tax years, these per-share numbers have not been retroactively adjusted to reflect the reverse stock split that was effectuated in January 2021.

We follow a two-step approach for evaluating uncertain tax positions. Recognition (step one) occurs when an enterprise concludes that a tax position, based solely on its technical merits, is more-likely-than-not to be sustained upon examination. Measurement (step two) determines the amount of benefit that is more-likely-than-not to be realized upon settlement.



# SL Green Realty Corp. and SL Green Operating Partnership, L.P.
Notes to Consolidated Financial Statements (cont.)
December 31, 2020

Derecognition of a tax position that was previously recognized would occur when a company subsequently determines that a tax position no longer meets the more-likely-than-not threshold of being sustained. The use of a valuation allowance as a substitute for derecognition of tax positions is prohibited.

## Stock-Based Employee Compensation Plans

We have a stock-based employee compensation plan, described more fully in Note 14, "Share-based Compensation."

The Company's stock options are recorded at fair value at the time of issuance. Fair value of the stock options is determined using the Black-Scholes option pricing model. The Black-Scholes model was developed for use in estimating the fair value of traded options, which have no vesting restrictions and are fully transferable. In addition, option valuation models require the input of highly subjective assumptions including the expected stock price volatility. Because our plan has characteristics significantly different from those of traded options and because changes in the subjective input assumptions can materially affect the fair value estimate, in our opinion, the existing models do not necessarily provide a reliable single measure of the fair value of the employee stock options.

Compensation cost for stock options, if any, is recognized over the vesting period of the award. Our policy is to grant options with an exercise price equal to the quoted closing market price of the Company's common stock on either the grant date or the date immediately preceding the grant date. Awards of stock or restricted stock are expensed as compensation over the benefit period based on the fair value of the stock on the grant date.

For share-based awards with a performance or market measure, we recognize compensation cost over the requisite service period, using the accelerated attribution expense method. The requisite service period begins on the date the compensation committee of our board of directors authorizes the award, adopts any relevant performance measures and communicates the award to the employees. For programs with awards that vest based on the achievement of a performance condition or market condition, we determine whether it is probable that the performance condition will be met, and estimate compensation cost based on the fair value of the award at the applicable award date estimated using a binomial model or market quotes. For share-based awards for which there is no pre-established performance measure, we recognize compensation cost over the service vesting period, which represents the requisite service period, on a straight-line basis. In accordance with the provisions of our share-based incentive compensation plans, we accept the return of shares of the Company's common stock, at the current quoted market price, from certain key employees to satisfy minimum statutory tax-withholding requirements related to shares that vested during the period.

Awards can also be made in the form of a separate series of units of limited partnership interest in the Operating Partnership called long-term incentive plan units, or LTIP units. LTIP units, which can be granted either as free-standing awards or in tandem with other awards under our stock incentive plan, are valued by reference to the value of the Company's common stock at the time of grant, and are subject to such conditions and restrictions as the compensation committee of the Company's board of directors may determine, including continued employment or service, computation of financial metrics and/or achievement of pre-established performance goals and objectives.

## Derivative Instruments

In the normal course of business, we use a variety of commonly used derivative instruments, such as interest rate swaps, caps, collars and floors, to manage, or hedge, interest rate risk. Effectiveness is essential for those derivatives that we intend to qualify for hedge accounting. Some derivative instruments are associated with an anticipated transaction. In those cases, hedge effectiveness criteria also require that it be probable that the underlying transaction occurs. Instruments that meet these hedging criteria are formally designated as hedges at the inception of the derivative contract.

To determine the fair values of derivative instruments, we use a variety of methods and assumptions that are based on market conditions and risks existing at each balance sheet date. For the majority of financial instruments including most derivatives, long-term investments and long-term debt, standard market conventions and techniques such as discounted cash flow analysis, option pricing models, replacement cost, and termination cost are used to determine fair value. All methods of assessing fair value result in a general approximation of value, and such value may never actually be realized.

In the normal course of business, we are exposed to the effect of interest rate changes and limit these risks by following established risk management policies and procedures including the use of derivatives. To address exposure to interest rates, derivatives are used primarily to fix the rate on debt based on floating-rate indices and manage the cost of borrowing obligations.

We use a variety of conventional derivative products. These derivatives typically include interest rate swaps, caps, collars and floors. We expressly prohibit the use of unconventional derivative instruments and using derivative instruments for trading



# SL Green Realty Corp. and SL Green Operating Partnership, L.P.
Notes to Consolidated Financial Statements (cont.)
December 31, 2020

or speculative purposes. Further, we have a policy of only entering into contracts with major financial institutions based upon their credit ratings and other factors.

We may employ swaps, forwards or purchased options to hedge qualifying forecasted transactions. Gains and losses related to these transactions are deferred and recognized in net income as interest expense in the same period or periods that the underlying transaction occurs, expires or is otherwise terminated.

Hedges that are reported at fair value and presented on the balance sheet could be characterized as cash flow hedges or fair value hedges. Interest rate caps and collars are examples of cash flow hedges. Cash flow hedges address the risk associated with future cash flows of interest payments. For all hedges held by us that meet the hedging objectives established by our corporate policy governing interest rate risk management, no net gains or losses were reported in earnings. The changes in fair value of derivative instruments designated as hedge instruments are reflected in accumulated other comprehensive income (loss). For derivative instruments not designated as hedging instruments, the gain or loss, resulting from the change in the estimated fair value of the derivative instruments, is recognized in current earnings during the period of change.

## Earnings per Share of the Company

The Company presents both basic and diluted earnings per share ("EPS") using the two-class method, which is an earnings allocation formula that determines EPS for common stock and any participating securities according to dividends declared (whether paid or unpaid). Under the two-class method, basic EPS is computed by dividing the income available to common stockholders by the weighted-average number of common stock shares outstanding for the period. Basic EPS includes participating securities, consisting of unvested restricted stock that receive nonforfeitable dividends similar to shares of common stock. Diluted EPS reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock, where such exercise or conversion would result in a lower EPS amount. Diluted EPS also includes units of limited partnership interest. The dilutive effect of stock options is reflected in the weighted average diluted outstanding shares calculation by application of the treasury stock method. Earnings per share has been retroactively adjusted to reflect the reverse stock split effectuated in January 2021 for all periods presented in this Annual Report on Form 10-K.

## Earnings per Unit of the Operating Partnership

The Operating Partnership presents both basic and diluted earnings per unit ("EPU") using the two-class method, which is an earnings allocation formula that determines EPU for common units and any participating securities according to dividends declared (whether paid or unpaid). Under the two-class method, basic EPU is computed by dividing the income available to common unitholders by the weighted-average number of common units outstanding for the period. Basic EPU includes participating securities, consisting of unvested restricted units that receive nonforfeitable dividends similar to shares of common units. Diluted EPU reflects the potential dilution that could occur if securities or other contracts to issue common units were exercised or converted into common units, where such exercise or conversion would result in a lower EPU amount. The dilutive effect of unit options is reflected in the weighted average diluted outstanding units calculation by application of the treasury stock method. Earnings per unit has been retroactively adjusted for all periods presented in this Annual Report on Form 10-K to reflect the reverse stock split effectuated in January 2021.

## Use of Estimates

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

## Concentrations of Credit Risk

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

We perform initial and ongoing evaluations of the credit quality of our tenants and require most tenants to provide security deposits or letters of credit. Though these security deposits and letters of credit are insufficient to meet the total value of a tenant's lease obligation, they are a measure of good faith and a potential source of funds to offset the economic costs associated with lost revenue from the tenant and the costs associated with re-tenanting a space. The properties in our real estate portfolio are located in the New York metropolitan area. The tenants located in our buildings operate in various industries. Other than one tenant, Viacom CBS, Inc., who accounted for 5.6% of our share of annualized cash rent, no other tenant in our



# SL Green Realty Corp. and SL Green Operating Partnership, L.P.
Notes to Consolidated Financial Statements (cont.)
December 31, 2020

portfolio accounted for more than 5.0% of our share of annualized cash rent, including our share of joint venture annualized cash rent, at December 31, 2020.

For the years ended December 31, 2020, 2019, and 2018, the following properties contributed more than 5.0% of our annualized cash rent from office properties, including our share of annualized cash rent from joint venture office properties:

<table><tr><td>Property</td><td>2020</td><td>Property</td><td>2019</td><td>Property</td><td>2018</td></tr><tr><td>11 Madison Avenue</td><td>8.2%</td><td>1185 Avenue of the Americas</td><td>7.6%</td><td>11 Madison Avenue</td><td>7.4%</td></tr><tr><td>420 Lexington Ave (Graybar)</td><td>7.5%</td><td>11 Madison Avenue</td><td>7.4%</td><td>1185 Avenue of the Americas</td><td>6.7%</td></tr><tr><td>1185 Avenue of the Americas</td><td>6.9%</td><td>420 Lexington Avenue</td><td>6.6%</td><td>420 Lexington Avenue</td><td>6.5%</td></tr><tr><td>1515 Broadway</td><td>6.6%</td><td>1515 Broadway</td><td>6.1%</td><td>1515 Broadway</td><td>6.0%</td></tr><tr><td>220 East 42nd Street</td><td>5.9%</td><td>One Madison Avenue</td><td>6.0%</td><td>One Madison Avenue</td><td>5.8%</td></tr><tr><td>280 Park Avenue</td><td>5.4%</td><td>220 East 42 \( ^{\text{nd}} \)  Street</td><td>5.5%</td><td></td><td></td></tr></table>

As of December 31, 2020, 64.1% of our work force is covered by six collective bargaining agreement. None of these agreements expire before December 31, 2021. See Note 19, "Benefits Plans."

## Reclassification

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

## Accounting Standards Updates

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

In April 2020, the FASB staff issued a question and answer document (the “Lease Modification Q&A”) on the application of lease accounting guidance to lease concessions provided as a result of the COVID-19 pandemic. Under existing lease guidance, the entity would have to determine, on a lease by lease basis, if a lease concession was the result of a new arrangement reached with the tenant, which would be accounted for under the lease modification framework, or if a lease concession was under the enforceable rights and obligations that existed in the original lease, which would be accounted for outside the lease modification framework. The Lease Modification Q&A provides entities with the option to elect to account for lease concessions as though the enforceable rights and obligations existed in the original lease. This election is only available when total cash flows resulting from the modified lease are substantially similar to the cash flows in the original lease. The Lease Modification Q&A did not have a material impact on the Company’s consolidated financial statements as of and for the year ended December 31, 2020, however, its future impact to the Company is dependent upon the extent of lease concessions granted to tenants as a result of the COVID-19 pandemic in future periods and the elections made by the Company at the time of entering into such concessions.

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

In January 2020, the FASB issued ASU No. 2020-01, Investments - Equity Securities (Topic 321), Investments - Equity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815) Clarifying the Interactions between Topic 321, Topic 323, and Topic 815. The amendment most relevant to the Company is how to apply the fair value measurement



# SL Green Realty Corp. and SL Green Operating Partnership, L.P.
Notes to Consolidated Financial Statements (cont.)
December 31, 2020

alternative in Topic 321 when an investor must apply the fair value to an investment under the equity method in Topic 323. The amendment clarifies that an entity should consider observable transactions when considering the fair value of an investment. The guidance is effective for the Company for fiscal years beginning after December 15, 2020. Early adoption is permitted. The Company adopted this guidance on January 1, 2020 and it did not have a material impact on the Company’s consolidated financial statements.

In August 2018, the FASB issued ASU No. 2018-15, Intangibles - Goodwill and Other- Internal-Use Software (Topic 350-40), Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That is a Service Contract. The amendments provide guidance on accounting for fees paid when the arrangement includes a software license and align the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing costs to develop or obtain internal-use software. The Company adopted this guidance on January 1, 2020 and it did not have a material impact on the Company’s consolidated financial statements.

In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820), Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement. This amendment removed, modified and added the disclosure requirements under Topic 820. The changes are effective for the Company for fiscal years beginning after December 15, 2019. Early adoption is permitted for the removed or modified disclosures with adoption of the additional disclosures upon the effective date. The Company adopted this guidance on January 1, 2020 and it did not have a material impact on the Company’s consolidated financial statements.

In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments; in November 2018 issued ASU No. 2018-19, Codification Improvements to Topic 326, Financial Instruments - Credit Losses, in April, May and November 2019, issued ASU No. 2019-04, 2019-05 and 2019-11, which provide codification improvements and targeted transition relief; and in 2020 issued ASU 2020-02 Financial Instruments-Credit Losses (Topic 326) and Leases (Topic 842), which updates SEC guidance in those Topics. The guidance changes how entities will measure credit losses for most financial assets and certain other instruments that are not measured at fair value through net income. The guidance replaces the current ‘incurred loss’ model with an ‘expected loss’ approach. The Company’s DPE portfolio and financing lease assets are subject to this guidance. ASU No. 2018-19 excludes operating lease receivables from the scope of this guidance. The Company adopted this guidance on January 1, 2020 and recorded a $39.2 million cumulative adjustment to retained earnings upon adoption.

## 3. Property Acquisitions

## 2020 Acquisitions

The following table summarizes the properties acquired during the year ended December 31, 2020:

<table><tr><td>Property</td><td>Acquisition Date</td><td>Property Type</td><td>Approximate Square Feet</td><td>Gross Asset Valuation (in millions)</td></tr><tr><td>762 Madison Avenue (1)</td><td>January 2020</td><td>Fee Interest</td><td>6,109</td><td>$ 29.3</td></tr><tr><td>707 Eleventh Avenue</td><td>January 2020</td><td>Fee Interest</td><td>159,720</td><td>90.0</td></tr><tr><td>15 Beekman (2)</td><td>January 2020</td><td>Leasehold Interest</td><td>98,412</td><td>—</td></tr><tr><td>590 Fifth Avenue (3)</td><td>October 2020</td><td>Fee Interest</td><td>103,300</td><td>107.2</td></tr></table>

(1) The Company acquired from our joint venture partner the remaining 10% interest in this property that the Company did not already own.

(2) In January 2020, the Company entered into a 99-year ground lease of 126 Nassau Street and subsequently renamed the property 15 Beekman. In August 2020, we entered into a partnership with a real estate fund managed by Meritz Alternative Investment as part of the capitalization of this development project. See note 6, “Investment in Unconsolidated Joint Ventures.”

(3) The property previously served as collateral for a debt and preferred equity investment and was acquired through a negotiated transaction with the sponsor.



# SL Green Realty Corp. and SL Green Operating Partnership, L.P.
Notes to Consolidated Financial Statements (cont.)
December 31, 2020

## 2019 Acquisitions

The following table summarizes the properties acquired during the year ended December 31, 2019:

<table><tr><td>Property</td><td>Acquisition Date</td><td>Property Type</td><td>Approximate Square Feet</td><td>Gross Asset Valuation (in millions)</td></tr><tr><td>106 Spring Street (1)</td><td>April 2019</td><td>Fee Interest</td><td>5,928</td><td>80.2</td></tr><tr><td>410 Tenth Avenue (2)</td><td>May 2019</td><td>Fee Interest</td><td>638,000</td><td>440.0</td></tr><tr><td>110 Greene Street (3)</td><td>May 2019</td><td>Fee Interest</td><td>223,600</td><td>256.5</td></tr></table>

(1) In April 2019, the Company accepted an assignment of the equity interests in the property in lieu of repayment of the Company's debt investment and marked the assets received and liabilities assumed to fair value.

(2) In May 2019, the Company closed on the acquisition of a majority and controlling 70.87% interest in 460 West 34th Street and subsequently renamed the property 410 Tenth Avenue. The Company had previously made a loan to the entity that was accounted for as an Acquisition, Development, and Construction (“ADC”) arrangement. Upon consolidating the entity in which it acquired the controlling equity interest, the Company and the Partnership removed the ADC arrangement and recorded the assets and liabilities of the entity at fair value, which resulted in the recognition of a fair value adjustment of $67.6 million, which was reflected in the Company’s consolidated statement of operations within purchase price and other fair value adjustments, and $18.3 million of net intangible lease liabilities.

(3) In May 2019, the Company acquired from our joint venture partner the remaining 10% interest in this property that the Company did not already own.

## 2018 Acquisitions

The following table summarizes the properties acquired during the year ended December 31, 2018:

<table><tr><td>Property</td><td>Acquisition Date</td><td>Property Type</td><td>Approximate Square Feet</td><td>Acquisition Price (in millions)</td></tr><tr><td>2 Herald Square (1)</td><td>May 2018</td><td>Leasehold Interest</td><td>369,000</td><td>266.0</td></tr><tr><td>1231 Third Avenue (2)(3)</td><td>July 2018</td><td>Fee Interest</td><td>39,000</td><td>55.4</td></tr><tr><td>Upper East Side Residential (3)(4)</td><td>August 2018</td><td>Fee Interest</td><td>0.2 acres</td><td>30.2</td></tr><tr><td>133 Greene Street (2)</td><td>October 2018</td><td>Fee Interest</td><td>6,425</td><td>31.0</td></tr><tr><td>712 Madison Avenue (2)</td><td>December 2018</td><td>Fee Interest</td><td>6,600</td><td>58.0</td></tr></table>

(1) In May 2018, the Company was the successful bidder at the foreclosure of the asset. We recorded the assets acquired and liabilities assumed at fair value. This resulted in the recognition of a fair value adjustment of $8.1 million, which is reflected in the Company's consolidated statement of operations within purchase price and other fair value adjustments. See Note 16, "Fair Value Measurements." The Company subsequently sold a 49% interest in the property in November 2018. See Note 4, "Properties Held for Sale and Dispositions." and Note 6, "Investments in Unconsolidated Joint Ventures."

(2) The Company accepted an assignment of the equity interests in the property in lieu of repayment of the Company’s debt investment, and recorded the assets received and liabilities assumed at fair value.

(3) This property was subsequently sold in October 2018. See Note 4, "Properties Held for Sale and Dispositions."

(4) In August 2018, the Company acquired the fee interest in three additional land parcels at the Upper East Side Residential Assemblage.



# SL Green Realty Corp. and SL Green Operating Partnership, L.P.
Notes to Consolidated Financial Statements (cont.)
December 31, 2020

## 4. Properties Held for Sale and Property Dispositions

## Properties Held for Sale

As of December 31, 2020, no properties were classified as held for sale.

## Property Dispositions

The following table summarizes the properties sold during the years ended December 31, 2020, 2019, and 2018:

<table><tr><td>Property</td><td>Disposition Date</td><td>Property Type</td><td>Unaudited Approximate Usable Square Feet</td><td>Sales Price (1) (in millions)</td><td>Gain (Loss) on Sale (2) (in millions)</td></tr><tr><td>30 East 40th Street</td><td>December 2020</td><td>Leasehold Interest</td><td>69,446</td><td>$ 5.2</td><td>$ (1.6)</td></tr><tr><td>1055 Washington Boulevard</td><td>December 2020</td><td>Leasehold Interest</td><td>182,000</td><td>23.8</td><td>(11.5)</td></tr><tr><td>Williamsburg Terrace</td><td>December 2020</td><td>Fee Interest</td><td>52,000</td><td>32.0</td><td>11.8</td></tr><tr><td>410 Tenth Avenue</td><td>December 2020</td><td>Fee Interest</td><td>638,000</td><td>952.5</td><td>56.4</td></tr><tr><td>400 East 58th Street</td><td>September 2020</td><td>Fee Interest</td><td>140,000</td><td>62.0</td><td>8.3</td></tr><tr><td>609 Fifth Avenue - Retail Condominium</td><td>May 2020</td><td>Fee Interest</td><td>21,437</td><td>168.0</td><td>63.3</td></tr><tr><td>315 West 33rd Street - The Olivia</td><td>March 2020</td><td>Fee Interest</td><td>492,987</td><td>446.5</td><td>71.8</td></tr><tr><td>Suburban Properties (3)</td><td>December 2019</td><td>Fee Interest</td><td>1,107,000</td><td>229.2</td><td>1.8</td></tr><tr><td>1640 Flatbush Avenue</td><td>December 2019</td><td>Fee Interest</td><td>1,000</td><td>16.2</td><td>5.5</td></tr><tr><td>562 Fifth Avenue</td><td>December 2019</td><td>Fee Interest</td><td>42,635</td><td>52.4</td><td>(26.6)</td></tr><tr><td>1010 Washington Boulevard (4)</td><td>November 2019</td><td>Fee Interest</td><td>143,400</td><td>23.1</td><td>(7.1)</td></tr><tr><td>115 Spring Street (5)</td><td>August 2019</td><td>Fee Interest</td><td>5,218</td><td>66.6</td><td>3.6</td></tr><tr><td>2 Herald Square (6)</td><td>November 2018</td><td>Office/Retail</td><td>369,000</td><td>265.0</td><td>—</td></tr><tr><td>400 Summit Lake Drive</td><td>November 2018</td><td>Land</td><td>39.5 acres</td><td>3.0</td><td>(36.2)</td></tr><tr><td>Upper East Side Assemblage (7)(8)</td><td>October 2018</td><td>Development</td><td>70,142</td><td>143.8</td><td>(6.3)</td></tr><tr><td>1-6 International Drive</td><td>July 2018</td><td>Office</td><td>540,000</td><td>55.0</td><td>(2.6)</td></tr><tr><td>635 Madison Avenue</td><td>June 2018</td><td>Retail</td><td>176,530</td><td>153.0</td><td>(14.1)</td></tr><tr><td>115-117 Stevens Avenue</td><td>May 2018</td><td>Office</td><td>178,000</td><td>12.0</td><td>(0.7)</td></tr><tr><td>600 Lexington Avenue</td><td>January 2018</td><td>Office</td><td>303,515</td><td>305.0</td><td>23.8</td></tr></table>

(1) Sales price represents the gross sales price for a property or the gross asset valuation for interests in a property.

(2) The gain on sale is net of $10.5 million, $2.0 million, and $1.3 million of employee compensation accrued in connection with the realization of these investment gains in the years ended December 31, 2020, 2019, and 2018, respectively. Additionally, amounts do not include adjustments for expenses recorded in subsequent periods.

(3) Suburban Properties consists of 360 Hamilton Avenue, 100 Summit Lake Drive, 200 Summit Lake Drive, and 500 Summit Lake Drive.

(4) The Company recorded a $7.1 million charge in 2019 that is included in depreciable real estate reserves and impairments in the consolidated statement of operations.

(5) The Company sold a 49% interest, which resulted in the deconsolidation of our remaining 51% interest. We recorded our investment at fair value which resulted in the recognition of a fair value adjustment of $3.8 million, which is reflected in the Company's consolidated statements of operations within purchase price and other fair value adjustments. See Note 6, "Investments in Unconsolidated Joint Ventures."

(6) In November 2018, the Company sold a 49% interest in 2 Herald Square to an Israeli institutional investor. See Note 6, "Investments in Unconsolidated Joint Ventures."

(7) Upper East Side Assemblage consists of 260 East 72nd Street, 31,076 square feet of development rights, 252-254 East 72nd Street, 257 East 71st Street, 259 East 71st Street, and 1231 Third Avenue.

(8) The Company recorded a $5.8 million charge in 2018 that is included in depreciable real estate reserves and impairments in the consolidated statement of operations.



# SL Green Realty Corp. and SL Green Operating Partnership, L.P.
Notes to Consolidated Financial Statements (cont.)
December 31, 2020

## 5. Debt and Preferred Equity Investments

Below is a summary of the activity in our debt and preferred equity investments for the twelve months ended December 31, 2020 and 2019 (in thousands):

<table><tr><td></td><td>December 31, 2020</td><td>December 31, 2019</td></tr><tr><td>Balance at beginning of year (1)</td><td>$ 1,580,306</td><td>$ 2,099,393</td></tr><tr><td>Debt investment originations/accretion (2)</td><td>389,300</td><td>652,866</td></tr><tr><td>Preferred equity investment originations/accretion (2)</td><td>167,042</td><td>14,736</td></tr><tr><td>Redemptions/sales/syndications/equity ownership/amortization (3)</td><td>(1,048,643)</td><td>(1,190,689)</td></tr><tr><td>Net change in loan loss reserves</td><td>(11,463)</td><td>4,000</td></tr><tr><td>Balance at end of period (1)</td><td>$ 1,076,542</td><td>$ 1,580,306</td></tr></table>

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

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

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

Below is a summary of our debt and preferred equity investments as of December 31, 2020 (dollars in thousands):

<table><tr><td rowspan="2">Type</td><td colspan="3">Floating Rate</td><td colspan="3">Fixed Rate</td><td rowspan="2">Total Carrying Value</td><td rowspan="2">Senior Financing</td><td rowspan="2">Maturity \( ^{(1)} \)</td></tr><tr><td>Carrying Value</td><td>Face Value</td><td>Interest Rate</td><td>Carrying Value</td><td>Face Value</td><td>Interest Rate</td></tr><tr><td>Senior Mortgage Debt</td><td>$ 62,751</td><td>$ 63,425</td><td>L + 2.00 - 3.50%</td><td>$ 1,249</td><td>$ 1,250</td><td>3.50%</td><td>$ 64,000</td><td>$ —</td><td>2021 - 2022</td></tr><tr><td>Junior Mortgage Debt</td><td>7,200</td><td>12,000</td><td>L + 7.25 - 7.25%</td><td>32,888</td><td>33,000</td><td>6.00%</td><td>40,088</td><td>127,000</td><td>2021</td></tr><tr><td>Mezzanine Debt</td><td>275,926</td><td>280,119</td><td>L + 4.95 - 14.07%</td><td>436,742</td><td>448,938</td><td>2.90 - 14.30%</td><td>712,668</td><td>4,459,287</td><td>2021 - 2029</td></tr><tr><td>Preferred Equity</td><td>—</td><td>—</td><td>—</td><td>259,786</td><td>262,254</td><td>6.50 - 11.00%</td><td>259,786</td><td>1,962,750</td><td>2022 - 2027</td></tr><tr><td>Balance at end of period</td><td>$ 345,877</td><td>$ 355,544</td><td></td><td>$ 730,665</td><td>$ 745,442</td><td></td><td>$ 1,076,542</td><td>$ 6,549,037</td><td></td></tr></table>

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

The following table is a rollforward of our total allowance for loan losses for the years ended December 31, 2020, 2019 and 2018 (in thousands):

<table><tr><td rowspan="2"></td><td colspan="4">December 31,</td></tr><tr><td>2020</td><td>2019</td><td>2018</td><td></td></tr><tr><td>Balance at beginning of year</td><td>$ 1,750</td><td>$ 5,750</td><td>$ —</td><td></td></tr><tr><td>Cumulative adjustment upon adoption of ASC 326</td><td>27,803</td><td>—</td><td>—</td><td></td></tr><tr><td>Current period provision for loan loss</td><td>20,693</td><td>—</td><td>6,839</td><td></td></tr><tr><td>Write-offs charged against the allowance \( ^{(1)} \)</td><td>(37,033)</td><td>(4,000)</td><td>(1,089)</td><td></td></tr><tr><td>Balance at end of period \( ^{(2)} \)</td><td>$ 13,213</td><td>$ 1,750</td><td>$ 5,750</td><td></td></tr></table>

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

(2) As of December 31, 2020, we had recorded an allowance for loan loss on all financing receivables on non-accrual except for one financing receivable with a carrying value of $225.2 million.

At December 31, 2020, all debt and preferred equity investments were performing in accordance with their respective terms, with the exception of one investment with a carrying value, net of reserves, of $6.8 million, as discussed in subnote 6 of the Debt Investments table below. At December 31, 2019, all debt and preferred equity investments were performing in accordance with their respective terms.



# SL Green Realty Corp. and SL Green Operating Partnership, L.P.
Notes to Consolidated Financial Statements (cont.)
December 31, 2020

The following table sets forth the net book value of our debt and preferred equity investment portfolio by risk rating as of December 31, 2020 and 2019 ($ in thousands):

<table><tr><td>Risk Rating</td><td>December 31, 2020</td><td>December 31, 2019</td></tr><tr><td>1 - Low Risk Assets - Low probability of loss</td><td>$ 695,035</td><td>$ 1,180,831</td></tr><tr><td>2 - Watch List Assets - Higher potential for loss</td><td>365,167</td><td>399,475</td></tr><tr><td>3 - High Risk Assets - Loss more likely than not</td><td>16,340</td><td>—</td></tr><tr><td></td><td>$ 1,076,542</td><td>$ 1,580,306</td></tr></table>

The following table sets forth the net book value of our debt and preferred equity investment portfolio by year of origination and risk rating as of December 31, 2020 ($ in thousands):

<table><tr><td rowspan="2">Risk Rating</td><td colspan="6">As of December 31, 2020</td></tr><tr><td>2020 \( ^{(1)} \)</td><td>2019 \( ^{(1)} \)</td><td>2018 \( ^{(1)} \)</td><td>Prior \( ^{(1)} \)</td><td>Total</td><td></td></tr><tr><td>1 - Low Risk Assets - Low probability of loss</td><td>$ 346,320</td><td>$ 55,318</td><td>$ 209,941</td><td>$ 83,456</td><td>$ 695,035</td><td></td></tr><tr><td>2 - Watch List Assets - Higher potential for loss</td><td>—</td><td>239,215</td><td>56,244</td><td>69,708</td><td>365,167</td><td></td></tr><tr><td>3 - High Risk Assets - Loss more likely than not</td><td>—</td><td>—</td><td>—</td><td>16,340</td><td>16,340</td><td></td></tr><tr><td></td><td>$ 346,320</td><td>$ 294,533</td><td>$ 266,185</td><td>$ 169,504</td><td>$ 1,076,542</td><td></td></tr></table>

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

We have determined that we have one portfolio segment of financing receivables at December 31, 2020 and 2019 comprising commercial real estate which is primarily recorded in debt and preferred equity investments.

Included in other assets is an additional amount of financing receivables totaling $66.2 million and $131.1 million at December 31, 2020 and 2019, respectively, for which the Company recorded adjustments upon adoption of ASC 326 of $11.4 million and provisions for loan losses of $14.6 million for the twelve months ended December 31, 2020. All of these loans have a risk rating of 2 and were performing in accordance with their respective terms with the exception of one financing receivable, which was put on nonaccrual in August 2018, that has a risk rating of 3 and a carrying value at December 31, 2020 of $2.5 million.



# SL Green Realty Corp. and SL Green Operating Partnership, L.P.
Notes to Consolidated Financial Statements (cont.)
December 31, 2020

## Debt Investments

As of December 31, 2020 and 2019, we held the following debt investments with an aggregate weighted average current yield of 5.80%, at December 31, 2020 (dollars in thousands):

<table><tr><td>Loan Type</td><td>December 31, 2020 Future Funding Obligations</td><td>December 31, 2020 Senior Financing</td><td>December 31, 2020 Carrying Value (1)</td><td>December 31, 2019 Carrying Value (1)</td><td>Maturity Date (2)</td></tr><tr><td>Fixed Rate Investments:</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Junior Mortgage (3b)(4)</td><td>$ 10,000</td><td>$ 67,000</td><td>$ 32,888</td><td>$ —</td><td>January 2021</td></tr><tr><td>Mezzanine Loan</td><td>—</td><td>15,000</td><td>3,500</td><td>3,500</td><td>September 2021</td></tr><tr><td>Mortgage/Mezzanine Loan</td><td>—</td><td>63,750</td><td>56,244</td><td>55,573</td><td>October 2021</td></tr><tr><td>Mezzanine Loan</td><td>—</td><td>280,000</td><td>41,057</td><td>38,734</td><td>August 2022</td></tr><tr><td>Mezzanine Loan (5)</td><td>—</td><td>353,772</td><td>225,204</td><td>215,737</td><td>June 2023</td></tr><tr><td>Mezzanine Loan (3a)(6)</td><td>—</td><td>105,000</td><td>13,366</td><td>12,950</td><td>June 2024</td></tr><tr><td>Mezzanine Loan</td><td>—</td><td>95,000</td><td>30,000</td><td>30,000</td><td>January 2025</td></tr><tr><td>Mezzanine Loan</td><td>—</td><td>1,712,750</td><td>55,250</td><td>55,250</td><td>June 2027</td></tr><tr><td>Mezzanine Loan</td><td>—</td><td>85,000</td><td>20,000</td><td>20,000</td><td>December 2029</td></tr><tr><td>Mezzanine Loan</td><td>—</td><td>—</td><td>—</td><td>24,952</td><td></td></tr><tr><td>Mezzanine Loan</td><td>—</td><td>—</td><td>—</td><td>30,000</td><td></td></tr><tr><td>Mezzanine Loan</td><td>—</td><td>—</td><td>—</td><td>12,714</td><td></td></tr><tr><td>Total fixed rate</td><td>$ 10,000</td><td>$ 2,777,272</td><td>$ 477,509</td><td>$ 499,410</td><td></td></tr><tr><td>Floating Rate Investments:</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Mezzanine Loan</td><td>$ —</td><td>$ 275,000</td><td>$ 49,956</td><td>$ 49,809</td><td>April 2021</td></tr><tr><td>Junior Mortgage Participation/Mezzanine Loan</td><td>—</td><td>60,000</td><td>15,733</td><td>15,698</td><td>July 2021</td></tr><tr><td>Mezzanine Loan</td><td>7,031</td><td>172,809</td><td>35,318</td><td>41,395</td><td>July 2021</td></tr><tr><td>Mezzanine Loan</td><td>—</td><td>61,744</td><td>29,106</td><td>15,743</td><td>July 2021</td></tr><tr><td>Mezzanine Loan (3c)</td><td>—</td><td>1,115,000</td><td>127,915</td><td>222,775</td><td>March 2022</td></tr><tr><td>Mortgage and Mezzanine Loan</td><td>7,085</td><td>—</td><td>60,532</td><td>—</td><td>May 2022</td></tr><tr><td>Mortgage and Mezzanine Loan</td><td>44,000</td><td>—</td><td>14,011</td><td>13,918</td><td>December 2022</td></tr><tr><td>Mezzanine Loan</td><td>53,845</td><td>64,462</td><td>19,889</td><td>69,839</td><td>May 2023</td></tr><tr><td>Mortgage and Mezzanine Loan</td><td>—</td><td>—</td><td>—</td><td>35,386</td><td></td></tr><tr><td>Junior Mortgage (7)</td><td>—</td><td>—</td><td>—</td><td>20,000</td><td></td></tr><tr><td>Mortgage Loan</td><td>—</td><td>—</td><td>—</td><td>19,971</td><td></td></tr><tr><td>Mortgage Loan</td><td>—</td><td>—</td><td>—</td><td>106,473</td><td></td></tr><tr><td>Mezzanine Loan</td><td>—</td><td>—</td><td>—</td><td>51,387</td><td></td></tr><tr><td>Mortgage/Mezzanine Loan</td><td>—</td><td>—</td><td>—</td><td>96,570</td><td></td></tr><tr><td>Mortgage/Mezzanine Loan</td><td>—</td><td>—</td><td></td><td>82,696</td><td></td></tr><tr><td>Total floating rate</td><td>$ 111,961</td><td>$ 1,749,015</td><td>$ 352,460</td><td>$ 841,660</td><td></td></tr><tr><td>Allowance for loan loss</td><td>$ —</td><td>$ —</td><td>$ (13,213)</td><td>$ —</td><td></td></tr><tr><td>Total</td><td>$ 121,961</td><td>$ 4,526,287</td><td>$ 816,756</td><td>$ 1,341,070</td><td></td></tr></table>

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

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

(3) Carrying value is net of the following amounts that were sold or syndicated, which are included in other assets and other liabilities on the consolidated balance sheets as a result of the transfers not meeting the conditions for sale accounting: (a) $12.0 million, (b) $66.6 million and (c) $0.4 million

(4) In January 2021, this loan was extended six months to July 2021.

(5) This loan was put on non-accrual in July 2020 and remains on non-accrual at December 31, 2020. No investment income has been recognized subsequent to it being put on non-accrual.

(6) This loan went into default and was put on non-accrual in June 2020 and remains on non-accrual at December 31, 2020. No investment income has been recognized subsequent to it being put on non-accrual. The Company is in discussions with the borrower.



# SL Green Realty Corp. and SL Green Operating Partnership, L.P.
Notes to Consolidated Financial Statements (cont.)
December 31, 2020

(7) In October 2020, the Company accepted a purchase in lieu of repayment and marked the assets received and liabilities assumed to fair value.

## Preferred Equity Investments

As of December 31, 2020 and 2019, we held the following preferred equity investments with an aggregate weighted average current yield of 9.96% at December 31, 2020 (dollars in thousands):

<table><tr><td>Type</td><td>December 31, 2020 Future Funding Obligations</td><td>December 31, 2020 Senior Financing</td><td>December 31, 2020 Carrying Value (1)</td><td>December 31, 2019 Carrying Value (1)</td><td>Mandatory Redemption (2)</td></tr><tr><td>Preferred Equity</td><td>$ —</td><td>$ 1,712,750</td><td>$ 154,691</td><td>$ 98,065</td><td>June 2022</td></tr><tr><td>Preferred Equity</td><td>—</td><td>250,000</td><td>105,095</td><td>—</td><td>February 2027</td></tr><tr><td>Preferred Equity (3)</td><td></td><td>—</td><td>—</td><td>141,171</td><td></td></tr><tr><td>Total Preferred Equity</td><td>$ —</td><td>$ 1,962,750</td><td>$ 259,786</td><td>$ 239,236</td><td></td></tr><tr><td>Allowance for loan loss</td><td>$ —</td><td>$ —</td><td>$ —</td><td>$ (1,750)</td><td></td></tr><tr><td>Total</td><td>$ —</td><td>$ 1,962,750</td><td>$ 259,786</td><td>$ 240,986</td><td></td></tr></table>

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

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

(3) In June 2020, we, along with the common member in 885 Third Avenue, amended the partnership documents related to the investment to provide us with more rights over the management of the underlying property. This resulted in the investment being accounted for using the equity method. See Note 6, "Investments in Unconsolidated Joint Ventures."

## 6. Investments in Unconsolidated Joint Ventures

We have investments in several real estate joint ventures with various partners. As of December 31, 2020, the book value of these investments was $3.8 billion, net of investments with negative book values totaling $89.6 million for which we have an implicit commitment to fund future capital needs.

As of December 31, 2020, 800 Third Avenue, 21 East 66th Street, 605 West 42nd Street, and certain properties within the Stonehenge Portfolio are VIEs in which we are not the primary beneficiary. As of December 31, 2019, 800 Third Avenue, 21 East 66th Street, 605 West 42nd Street, 333 East 22nd Street, and certain properties within the Stonehenge Portfolio were VIEs in which we are not the primary beneficiary. Our net equity investment in these VIEs was $134.0 million as of December 31, 2020 and $145.9 million as of December 31, 2019. Our maximum loss is limited to the amount of our equity investment in these VIEs. See the "Principles of Consolidation" section of Note 2, "Significant Accounting Policies". All other investments below are voting interest entities. As we do not control the joint ventures listed below, we account for them under the equity method of accounting.

The table below provides general information on each of our joint ventures as of December 31, 2020:



## SL Green Realty Corp. and SL Green Operating Partnership, L.P.
Notes to Consolidated Financial Statements (cont.)
December 31, 2020

<table><tr><td>Property</td><td>Partner</td><td>Ownership Interest (1)</td><td>Economic Interest (1)</td><td>Unaudited Approximate Square Feet</td></tr><tr><td>100 Park Avenue</td><td>Prudential Real Estate Investors</td><td>49.90%</td><td>49.90%</td><td>834,000</td></tr><tr><td>717 Fifth Avenue</td><td>Wharton Properties/Private Investor</td><td>10.92%</td><td>10.92%</td><td>119,500</td></tr><tr><td>800 Third Avenue</td><td>Private Investors</td><td>60.52%</td><td>60.52%</td><td>526,000</td></tr><tr><td>919 Third Avenue</td><td>New York State Teacher&#x27;s Retirement System</td><td>51.00%</td><td>51.00%</td><td>1,454,000</td></tr><tr><td>11 West 34th Street</td><td>Private Investor/Wharton Properties</td><td>30.00%</td><td>30.00%</td><td>17,150</td></tr><tr><td>280 Park Avenue</td><td>Vornado Realty Trust</td><td>50.00%</td><td>50.00%</td><td>1,219,158</td></tr><tr><td>1552-1560 Broadway (2)</td><td>Wharton Properties</td><td>50.00%</td><td>50.00%</td><td>57,718</td></tr><tr><td>10 East 53rd Street</td><td>Canadian Pension Plan Investment Board</td><td>55.00%</td><td>55.00%</td><td>354,300</td></tr><tr><td>21 East 66th Street (3)</td><td>Private Investors</td><td>32.28%</td><td>32.28%</td><td>13,069</td></tr><tr><td>650 Fifth Avenue (4)</td><td>Wharton Properties</td><td>50.00%</td><td>50.00%</td><td>69,214</td></tr><tr><td>121 Greene Street</td><td>Wharton Properties</td><td>50.00%</td><td>50.00%</td><td>7,131</td></tr><tr><td>55 West 46th Street (5)</td><td>Prudential Real Estate Investors</td><td>25.00%</td><td>25.00%</td><td>347,000</td></tr><tr><td>Stonehenge Portfolio</td><td>Various</td><td>Various</td><td>Various</td><td>1,439,016</td></tr><tr><td>605 West 42nd Street</td><td>The Moinian Group</td><td>20.00%</td><td>20.00%</td><td>927,358</td></tr><tr><td>11 Madison Avenue</td><td>PGIM Real Estate</td><td>60.00%</td><td>60.00%</td><td>2,314,000</td></tr><tr><td>400 East 57th Street (6)</td><td>BlackRock, Inc and Stonehenge Partners</td><td>51.00%</td><td>41.00%</td><td>290,482</td></tr><tr><td>One Vanderbilt</td><td>National Pension Service of Korea/Hines Interest LP</td><td>71.01%</td><td>71.01%</td><td>1,657,198</td></tr><tr><td>Worldwide Plaza</td><td>RXR Realty / New York REIT / Private Investor</td><td>24.35%</td><td>24.35%</td><td>2,048,725</td></tr><tr><td>1515 Broadway</td><td>Allianz Real Estate of America</td><td>56.87%</td><td>56.87%</td><td>1,750,000</td></tr><tr><td>2 Herald Square</td><td>Israeli Institutional Investor</td><td>51.00%</td><td>51.00%</td><td>369,000</td></tr><tr><td>115 Spring Street</td><td>Private Investor</td><td>51.00%</td><td>51.00%</td><td>5,218</td></tr><tr><td>885 Third Avenue (7)</td><td>Private Investor</td><td>(6)</td><td>100.00%</td><td>625,300</td></tr><tr><td>15 Beekman (8)</td><td>A fund managed by Meritz Alternative Investment Management</td><td>20.00%</td><td>20.00%</td><td>221,884</td></tr><tr><td>85 Fifth Avenue</td><td>Wells Fargo</td><td>36.30%</td><td>36.30%</td><td>12,946</td></tr><tr><td>One Madison Avenue (9)</td><td>National Pension Service of Korea/Hines Interest LP</td><td>50.50%</td><td>50.50%</td><td>1,048,700</td></tr></table>

(1) Ownership interest and economic interest represent the Company's interests in the joint venture as of December 31, 2020. Changes in ownership or economic interests within the current year are disclosed in the notes below.

(2) The acquisition price represents only the purchase of the 1552 Broadway interest which comprised approximately 13,045 square feet. The joint venture also owns a long-term leasehold interest in the retail space and certain other spaces at 1560 Broadway, which is adjacent to 1552 Broadway.

(3) We hold a 32.28% interest in three retail units and one residential unit at the property and a 16.14% interest in three residential units at the property.

(4) The joint venture owns a long-term leasehold interest in the retail space at 650 Fifth Avenue.

(5) In February 2021, along with our joint venture partner, we entered into contract to sell the property. This transaction is expected to close in the first quarter of 2021. If the transaction closes in accordance with the terms of the contract, we expect to recognize a loss on sale of approximately $17.8 million.

(6) In October 2016, we sold a 49% interest in this property. Our interest in the property was sold within a consolidated joint venture owned 90% by the Company and 10% by Stonehenge. The transaction resulted in the deconsolidation of the venture's remaining 51% interest in the property. Our joint venture with Stonehenge remains consolidated resulting in the combined 51% interest being shown within investments in unconsolidated joint ventures on our balance sheet.

(7) We hold 100% of the preferred equity interest in the property and believe there is no value to the common equity.

(8) In August 2020, the Company formed a joint venture, which then entered into a long-term sublease with the Company for the building at 126 Nassau Street. As a result of this transaction, we recognized a gain of $17.7 million, which is included in Gain on sale of real estate, net, in our consolidated statements of operations. This gain was calculated in accordance with ASC 842, as the Company identified the lease and non-lease components included in the sublease agreement and allocated the consideration in the agreement to each lease and non-lease component based on each components' standalone selling price, which was estimated utilizing a combination of the adjusted market assessment and residual approaches as provided for in ASC 606. In the fourth quarter of 2020, the project was renamed 15 Beekman and this name has subsequently been used in all public statements and marketing materials.

(9) In 2020, the Company admitted partners to the One Madison Avenue development project, which resulted in the Company no longer retaining a controlling interest in the entity, as defined in ASC 810, and the consolidation of our remaining 50.5% interest. We recorded our investment at fair value, which resulted in the recognition of a fair value adjustment of $187.5 million. The fair value of our investment was determined by the terms of the joint venture agreement governing the capitalization of the project. The partners have committed aggregate equity to the project totaling no less than $492.2 million and their ownership interest in the joint venture is based on their capital contributions, up to an aggregate maximum of 49.5%. At December 31, 2020, the total of the two partners' ownership interests based on equity contributed was 9.6%.



# SL Green Realty Corp. and SL Green Operating Partnership, L.P.
Notes to Consolidated Financial Statements (cont.)
December 31, 2020

## Disposition of Joint Venture Interests or Properties

The following table summarizes the investments in unconsolidated joint ventures sold during the years ended December 31, 2020, 2019, and 2018:

<table><tr><td>Property</td><td>Ownership Interest Sold</td><td>Disposition Date</td><td>Gross Asset Valuation (in thousands) (1)</td><td>Gain (Loss) on Sale (in thousands) (2)</td></tr><tr><td>333 East 22nd Street</td><td>33.33%</td><td>December 2020</td><td>$ 1,640</td><td>$ 2,968</td></tr><tr><td>21 East 66th Street (3)</td><td>1 residential unit</td><td>December 2019</td><td>2,900</td><td>279</td></tr><tr><td>521 Fifth Avenue</td><td>50.50%</td><td>May 2019</td><td>381,000</td><td>57,874</td></tr><tr><td>131-137 Spring Street</td><td>20.00%</td><td>January 2019</td><td>216,000</td><td>17,660</td></tr><tr><td>Stonehenge Portfolio (partial)</td><td>Various</td><td>Various - 2019</td><td>468,800</td><td>(2,408)</td></tr><tr><td>3 Columbus Circle</td><td>48.90%</td><td>November 2018</td><td>851,000</td><td>160,368</td></tr><tr><td>Mezzanine Loan (4)</td><td>33.33%</td><td>August 2018</td><td>15,000</td><td>N/A</td></tr><tr><td>724 Fifth Avenue</td><td>49.90%</td><td>July 2018</td><td>365,000</td><td>64,587</td></tr><tr><td>Jericho Plaza</td><td>11.67%</td><td>June 2018</td><td>117,400</td><td>147</td></tr><tr><td>1745 Broadway</td><td>56.87%</td><td>May 2018</td><td>633,000</td><td>52,038</td></tr><tr><td>175-225 Third Street Brooklyn, New York</td><td>95.00%</td><td>April 2018</td><td>115,000</td><td>19,483</td></tr><tr><td>1515 Broadway (5)</td><td>13.00%</td><td>February 2018</td><td>1,950,000</td><td>—</td></tr><tr><td>Stonehenge Portfolio (partial)</td><td>Various</td><td>Various - 2018</td><td>331,100</td><td>(6,063)</td></tr></table>

(1) Represents implied gross valuation for the joint venture or sales price of the property.

(2) Represents the Company’s share of the gain or (loss). The gain on sale is net of $0.0 million, $4.0 million, and $11.7 million of employee compensation accrued in connection with the realization of these investment gains in the years ended December 31, 2020, 2019, and 2018, respectively. Additionally, gain (loss) amounts do not include adjustments for expenses recorded in subsequent periods.

(3) We, together with our joint venture partner, closed on the sale of one residential unit at the property.

(4) Our investment in a joint venture that owned a mezzanine loan secured by a commercial property in midtown Manhattan was repaid after the joint venture received repayment of the underlying loan.

(5) Our investment in 1515 Broadway was marked to fair value on January 1, 2018 upon adoption of ASC 610-20.

## Joint Venture Mortgages and Other Loans Payable

We generally finance our joint ventures with non-recourse debt. In certain cases we may provide guarantees or master leases for tenant space, which terminate upon the satisfaction of specified circumstances or repayment of the underlying loans. The mortgage notes and other loans payable collateralized by the respective joint venture properties and assignment of leases at December 31, 2020 and 2019, respectively, are as follows (dollars in thousands):



## SL Green Realty Corp. and SL Green Operating Partnership, L.P.
Notes to Consolidated Financial Statements (cont.)
December 31, 2020

<table><tr><td>Property</td><td>Economic Interest (1)</td><td>Initial Maturity Date</td><td>Final Maturity Date (2)</td><td>Interest Rate (3)</td><td>December 31, 2020</td><td>December 31, 2019</td></tr><tr><td>Fixed Rate Debt:</td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>885 Third Avenue (4)</td><td>100.00 %</td><td>April 2021</td><td>April 2021</td><td>3.35%</td><td>$ 272,000</td><td>$ —</td></tr><tr><td>717 Fifth Avenue (mortgage)</td><td>10.92 %</td><td>July 2022</td><td>July 2022</td><td>4.45%</td><td>300,000</td><td>300,000</td></tr><tr><td>717 Fifth Avenue (mezzanine)</td><td>10.92 %</td><td>July 2022</td><td>July 2022</td><td>5.50%</td><td>355,328</td><td>355,328</td></tr><tr><td>650 Fifth Avenue (mortgage)</td><td>50.00 %</td><td>October 2022</td><td>October 2022</td><td>4.46%</td><td>210,000</td><td>210,000</td></tr><tr><td>650 Fifth Avenue (mezzanine)</td><td>50.00 %</td><td>October 2022</td><td>October 2022</td><td>5.45%</td><td>65,000</td><td>65,000</td></tr><tr><td>21 East 66th Street</td><td>32.28 %</td><td>April 2023</td><td>April 2028</td><td>3.60%</td><td>12,000</td><td>12,000</td></tr><tr><td>919 Third Avenue</td><td>51.00 %</td><td>June 2023</td><td>June 2023</td><td>5.12%</td><td>500,000</td><td>500,000</td></tr><tr><td>1515 Broadway</td><td>56.87 %</td><td>March 2025</td><td>March 2025</td><td>3.93%</td><td>820,607</td><td>838,546</td></tr><tr><td>11 Madison Avenue</td><td>60.00 %</td><td>September 2025</td><td>September 2025</td><td>3.84%</td><td>1,400,000</td><td>1,400,000</td></tr><tr><td>800 Third Avenue</td><td>60.52 %</td><td>February 2026</td><td>February 2026</td><td>3.37%</td><td>177,000</td><td>177,000</td></tr><tr><td>400 East 57th Street</td><td>41.00 %</td><td>November 2026</td><td>November 2026</td><td>3.00%</td><td>97,024</td><td>97,735</td></tr><tr><td>Worldwide Plaza</td><td>24.35 %</td><td>November 2027</td><td>November 2027</td><td>3.98%</td><td>1,200,000</td><td>1,200,000</td></tr><tr><td>Stonehenge Portfolio (5)</td><td>Various</td><td>Various</td><td>Various</td><td>3.50%</td><td>195,899</td><td>196,112</td></tr><tr><td>Total fixed rate debt</td><td></td><td></td><td></td><td></td><td>$ 5,604,858</td><td>$ 5,351,721</td></tr><tr><td>Floating Rate Debt:</td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>121 Greene Street</td><td>50.00 %</td><td>(6)</td><td>(6)</td><td>L+ 1.50%</td><td>$ 15,000</td><td>$ 15,000</td></tr><tr><td>280 Park Avenue</td><td>50.00 %</td><td>September 2021</td><td>September 2024</td><td>L+ 1.73%</td><td>1,200,000</td><td>1,200,000</td></tr><tr><td>One Vanderbilt (7)</td><td>71.01 %</td><td>September 2021</td><td>September 2023</td><td>L+ 2.50%</td><td>1,210,329</td><td>732,928</td></tr><tr><td>1552 Broadway</td><td>50.00 %</td><td>October 2021</td><td>October 2022</td><td>L+ 2.65%</td><td>195,000</td><td>195,000</td></tr><tr><td>2 Herald Square</td><td>51.00 %</td><td>November 2021</td><td>November 2023</td><td>L+ 1.45%</td><td>214,500</td><td>190,000</td></tr><tr><td>11 West 34th Street</td><td>30.00 %</td><td>January 2022</td><td>January 2023</td><td>L+ 1.45%</td><td>23,000</td><td>23,000</td></tr><tr><td>55 West 46th Street (8)</td><td>25.00 %</td><td>August 2022</td><td>August 2024</td><td>L+ 1.25%</td><td>192,524</td><td>192,524</td></tr><tr><td>115 Spring Street</td><td>51.00 %</td><td>September 2023</td><td>September 2023</td><td>L+ 3.40%</td><td>65,550</td><td>65,550</td></tr><tr><td>100 Park Avenue</td><td>49.90 %</td><td>December 2023</td><td>December 2025</td><td>L+ 2.25%</td><td>360,000</td><td>356,972</td></tr><tr><td>15 Beekman (9)</td><td>20.00 %</td><td>January 2024</td><td>July 2025</td><td>L+ 1.50%</td><td>11,212</td><td>—</td></tr><tr><td>10 East 53rd Street</td><td>55.00 %</td><td>February 2025</td><td>February 2025</td><td>L+ 1.35%</td><td>220,000</td><td>170,000</td></tr><tr><td>One Madison Avenue (10)</td><td>50.50 %</td><td>November 2025</td><td>November 2026</td><td>L+ 3.35%</td><td>—</td><td>—</td></tr><tr><td>605 West 42nd Street</td><td>20.00 %</td><td>August 2027</td><td>August 2027</td><td>L+ 1.44%</td><td>550,000</td><td>550,000</td></tr><tr><td>21 East 66th Street</td><td>32.28 %</td><td>June 2033</td><td>June 2033</td><td>T+ 2.75%</td><td>677</td><td>712</td></tr><tr><td>Total floating rate debt</td><td></td><td></td><td></td><td></td><td>$ 4,257,792</td><td>$ 3,691,686</td></tr><tr><td>Total joint venture mortgages and other loans payable</td><td></td><td></td><td></td><td></td><td>$ 9,862,650</td><td>$ 9,043,407</td></tr><tr><td>Deferred financing costs, net</td><td></td><td></td><td></td><td></td><td>(113,446)</td><td>(91,538)</td></tr><tr><td>Total joint venture mortgages and other loans payable, net</td><td></td><td></td><td></td><td></td><td>$ 9,749,204</td><td>$ 8,951,869</td></tr></table>

(1) Economic interest represents the Company's interests in the joint venture as of December 31, 2020. Changes in ownership or economic interests, if any, within the current year are disclosed in the notes to the investment in unconsolidated joint ventures table above.

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

(3) Interest rates as of December 31, 2020, taking into account interest rate hedges in effect during the period. Floating rate debt is presented with the stated spread over the 30-day LIBOR ("L") or 1-year Treasury ("T").

(4) The Company holds 100% of the preferred equity interest in the property and believes that there is no value to the common equity.

(5) Comprised of three mortgages totaling $132.4 million that mature in April 2028 and two mortgages totaling $63.5 million that mature in July 2029.

(6) This loan matured in November 2020. The Company is in discussions with the lender on resolution.



# SL Green Realty Corp. and SL Green Operating Partnership, L.P.
Notes to Consolidated Financial Statements (cont.)
December 31, 2020

(7) This loan is a $1.75 billion construction facility with reductions in interest cost based on meeting conditions, the first of which has been satisfied, and has an initial term of three years with two one year extension options. Advances under the loan are subject to costs incurred. In conjunction with the loan, we provided partial guarantees for interest and principal payments, the amounts of which are based on certain construction milestones and operating metrics.

(8) This loan has a committed amount of $198.0 million, of which $5.5 million was unfunded as of December 31, 2020. In February 2021, along with our joint venture partner, we entered into contract to sell the property. This transaction is expected to close in the first quarter of 2021.
(9) This loan is a $125.0 million construction facility. Advances under the loan are subject to costs incurred.

(10) The loan is a $1.25 billion construction facility with an initial term of five years with one one year extension option. Advances under the loan are subject to costs incurred. As of December 31, 2020 no draws have been made under this facility. In conjunction with the loan, we provided partial guarantees for interest and principal payments, the amounts of which are based on certain construction milestones and operating metrics.

We are entitled to receive fees for providing management, leasing, construction supervision and asset management services to certain of our joint ventures. We earned $15.8 million, $13.0 million and $14.2 million from these services, net of our ownership share of the joint ventures, for the years ended December 31, 2020, 2019, and 2018, respectively. In addition, we have the ability to earn incentive fees based on the ultimate financial performance of certain of the joint venture properties.

The combined balance sheets for the unconsolidated joint ventures, at December 31, 2020 and 2019, are as follows (in thousands):

<table><tr><td></td><td>December 31, 2020</td><td>December 31, 2019</td></tr><tr><td>Assets (1)</td><td></td><td></td></tr><tr><td>Commercial real estate property, net</td><td>$ 16,143,880</td><td>$ 14,349,628</td></tr><tr><td>Cash and restricted cash</td><td>357,076</td><td>336,189</td></tr><tr><td>Tenant and other receivables, related party receivables, and deferred rents receivable</td><td>403,883</td><td>371,065</td></tr><tr><td>Other assets</td><td>2,001,612</td><td>2,039,429</td></tr><tr><td>Total assets</td><td>$ 18,906,451</td><td>$ 17,096,311</td></tr><tr><td>Liabilities and equity (1)</td><td></td><td></td></tr><tr><td>Mortgages and other loans payable, net</td><td>$ 9,749,204</td><td>$ 8,951,869</td></tr><tr><td>Deferred revenue/gain</td><td>1,341,571</td><td>1,501,616</td></tr><tr><td>Lease liabilities</td><td>1,002,563</td><td>897,380</td></tr><tr><td>Other liabilities</td><td>464,107</td><td>308,304</td></tr><tr><td>Equity</td><td>6,349,006</td><td>5,437,142</td></tr><tr><td>Total liabilities and equity</td><td>$ 18,906,451</td><td>$ 17,096,311</td></tr><tr><td>Company&#x27;s investments in unconsolidated joint ventures</td><td>$ 3,823,322</td><td>$ 2,912,842</td></tr></table>

(1) The combined assets, liabilities and equity for the unconsolidated joint ventures reflects the effect of step ups in basis on the retained non-controlling interests in deconsolidated investments as a result of the adoption of ASC 610-20 in January 2018. In addition, at December 31, 2020, $170.6 million of net unamortized basis differences between the amount at which our investments are carried and our share of equity in net assets of the underlying property will be amortized through equity in net income (loss) from unconsolidated joint ventures over the remaining life of the underlying items having given rise to the differences.



# SL Green Realty Corp. and SL Green Operating Partnership, L.P.
Notes to Consolidated Financial Statements (cont.)
December 31, 2020

The combined statements of operations for the unconsolidated joint ventures, from acquisition date through the years ended December 31, 2020, 2019, and 2018 are as follows (unaudited, in thousands):

<table><tr><td rowspan="2"></td><td colspan="3">Year Ended December 31,</td></tr><tr><td>2020</td><td>2019</td><td>2018</td></tr><tr><td>Total revenues</td><td>$ 1,133,217</td><td>$ 1,163,534</td><td>$ 1,244,804</td></tr><tr><td>Operating expenses</td><td>180,201</td><td>202,881</td><td>219,440</td></tr><tr><td>Real estate taxes</td><td>220,633</td><td>212,355</td><td>226,961</td></tr><tr><td>Operating lease rent</td><td>24,134</td><td>24,816</td><td>18,697</td></tr><tr><td>Interest expense, net of interest income</td><td>325,500</td><td>372,408</td><td>363,055</td></tr><tr><td>Amortization of deferred financing costs</td><td>20,427</td><td>19,336</td><td>21,634</td></tr><tr><td>Transaction related costs</td><td>—</td><td>—</td><td>—</td></tr><tr><td>Depreciation and amortization</td><td>407,834</td><td>407,697</td><td>421,458</td></tr><tr><td>Total expenses</td><td>$ 1,178,729</td><td>$ 1,239,493</td><td>$ 1,271,245</td></tr><tr><td>Loss on early extinguishment of debt</td><td>(194)</td><td>(1,031)</td><td>—</td></tr><tr><td>Net loss before gain on sale \( ^{(1)} \)</td><td>$ (45,706)</td><td>$ (76,990)</td><td>$ (26,441)</td></tr><tr><td>Company&#x27;s equity in net loss income from unconsolidated joint ventures  \( ^{(1)} \)</td><td>$ (25,195)</td><td>$ (34,518)</td><td>$ 7,311</td></tr></table>

(1) The combined statements of operations and the Company's equity in net (loss) income for the unconsolidated joint ventures reflects the effect of step ups in basis on the retained non-controlling interests in deconsolidated investments as a result of the adoption of ASC 610-20 in January 2018.

## 7. Deferred Costs

Deferred costs at December 31, 2020 and 2019 consisted of the following (in thousands):

<table><tr><td rowspan="2"></td><td colspan="2">December 31,</td></tr><tr><td>2020</td><td>2019</td></tr><tr><td>Deferred leasing costs</td><td>$ 447,002</td><td>$ 466,136</td></tr><tr><td>Less: accumulated amortization</td><td>(269,834)</td><td>(260,853)</td></tr><tr><td>Deferred costs, net</td><td>$ 177,168</td><td>$ 205,283</td></tr></table>



# SL Green Realty Corp. and SL Green Operating Partnership, L.P.
Notes to Consolidated Financial Statements (cont.)
December 31, 2020

## 8. Mortgages and Other Loans Payable

The mortgages and other loans payable collateralized by the respective properties and assignment of leases or debt investments at December 31, 2020 and 2019, respectively, were as follows (dollars in thousands):

<table><tr><td>Property</td><td>Initial Maturity Date</td><td>Final Maturity Date (1)</td><td>Interest Rate (2)</td><td>December 31, 2020</td><td>December 31, 2019</td></tr><tr><td>Fixed Rate Debt:</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>100 Church Street</td><td>July 2022</td><td>July 2022</td><td>4.68%</td><td>$ 204,875</td><td>$ 209,296</td></tr><tr><td>420 Lexington Avenue</td><td>October 2024</td><td>October 2040</td><td>3.99%</td><td>294,035</td><td>299,165</td></tr><tr><td>Landmark Square</td><td>January 2027</td><td>January 2027</td><td>4.90%</td><td>100,000</td><td>100,000</td></tr><tr><td>485 Lexington Avenue</td><td>February 2027</td><td>February 2027</td><td>4.25%</td><td>450,000</td><td>450,000</td></tr><tr><td>1080 Amsterdam (3)</td><td>February 2027</td><td>February 2027</td><td>3.59%</td><td>34,773</td><td>35,123</td></tr><tr><td>400 East 58th Street</td><td></td><td></td><td></td><td>—</td><td>39,094</td></tr><tr><td>762 Madison Avenue (4)</td><td></td><td></td><td></td><td>—</td><td>771</td></tr><tr><td>315 West 33rd Street (5)</td><td></td><td></td><td></td><td></td><td>250,000</td></tr><tr><td>Total fixed rate debt</td><td></td><td></td><td></td><td>$ 1,083,683</td><td>$ 1,383,449</td></tr><tr><td>Floating Rate Debt:</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>133 Greene Street</td><td>(6)</td><td>(6)</td><td>L+ 2.00%</td><td>$ 15,523</td><td>$ 15,523</td></tr><tr><td>106 Spring Street</td><td>(7)</td><td>(7)</td><td>L+ 2.50%</td><td>38,025</td><td>38,025</td></tr><tr><td>FHLB Facility (8)</td><td>January 2021</td><td>January 2021</td><td>L+ 0.28%</td><td>10,000</td><td>—</td></tr><tr><td>FHLB Facility (8)</td><td>January 2021</td><td>January 2021</td><td>L+ 0.23%</td><td>15,000</td><td>—</td></tr><tr><td>FHLB Facility (8)</td><td>January 2021</td><td>January 2021</td><td>L+ 0.18%</td><td>35,000</td><td>—</td></tr><tr><td>609 Fifth Avenue</td><td>March 2021</td><td>March 2024</td><td>L+ 2.40%</td><td>57,651</td><td>53,773</td></tr><tr><td>185 Broadway (9)</td><td>November 2021</td><td>November 2023</td><td>L+ 2.85%</td><td>158,478</td><td>120,110</td></tr><tr><td>712 Madison Avenue</td><td>December 2021</td><td>December 2022</td><td>L+ 1.85%</td><td>28,000</td><td>28,000</td></tr><tr><td>220 East 42nd Street</td><td>June 2023</td><td>June 2025</td><td>L+ 2.75%</td><td>510,000</td><td>—</td></tr><tr><td>719 Seventh Avenue</td><td>September 2023</td><td>September 2023</td><td>L+ 1.20%</td><td>50,000</td><td>50,000</td></tr><tr><td>2017 Master Repurchase Agreement (10)</td><td></td><td></td><td></td><td>—</td><td>152,684</td></tr><tr><td>FHLB Facility</td><td></td><td></td><td></td><td>—</td><td>10,000</td></tr><tr><td>FHLB Facility</td><td></td><td></td><td></td><td>—</td><td>15,000</td></tr><tr><td>FHLB Facility</td><td></td><td></td><td></td><td>—</td><td>14,500</td></tr><tr><td>410 Tenth Avenue</td><td></td><td></td><td></td><td>—</td><td>330,819</td></tr><tr><td>Total floating rate debt</td><td></td><td></td><td></td><td>$ 917,677</td><td>$ 828,434</td></tr><tr><td>Total mortgages and other loans payable</td><td></td><td></td><td></td><td>$ 2,001,360</td><td>$ 2,211,883</td></tr><tr><td>Deferred financing costs, net of amortization</td><td></td><td></td><td></td><td>(21,388)</td><td>(28,630)</td></tr><tr><td>Total mortgages and other loans payable, net</td><td></td><td></td><td></td><td>$ 1,979,972</td><td>$ 2,183,253</td></tr></table>

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

(2) Interest rate as of December 31, 2020, taking into account interest rate hedges in effect during the period. Floating rate debt is presented with the stated spread over the 30-day LIBOR, unless otherwise specified.

(3) The loan is comprised of a $33.9 million mortgage loan and $0.9 million mezzanine loan with a fixed interest rate of 350 basis points and 700 basis points, respectively, for the first five years and is prepayable without penalty at the end of the fifth year.

(4) In January 2020, the Company closed on the acquisition of the remaining 10% interest in this property from our joint venture partner. As part of this transaction, the loan was repaid.

(5) In March 2020, the loan was assumed by the buyer in connection with the sale of the property.

(6) In February 2021, this debt was extinguished after the lender was the winning bidder in a foreclosure auction for the property.

(7) This loan matured in January 2021. The Company is in discussions with the lender on resolution.

(8) In January 2021, these loans were extended one month from their respective maturity dates to February 2021 without penalty. The interest rate for the extension period was a fixed rate of 39 basis points. In February 2021, all advances were repaid.

(9) This loan is a $225.0 million construction facility, with reductions in interest cost based on meeting certain conditions, and has an initial three year term with two one year extension options. Advances under the loan are subject to incurred costs and funded equity requirements.



# SL Green Realty Corp. and SL Green Operating Partnership, L.P.
Notes to Consolidated Financial Statements (cont.)
December 31, 2020

(10) In June 2020, we exercised a one year extension option which extended the maturity date to June 2021. At December 31, 2020, there was no outstanding balance on the $400.0 million facility.

At December 31, 2020 and 2019, the gross book value of the properties and debt and preferred equity investments collateralizing the mortgages and other loans payable was approximately $2.5 billion and $3.3 billion, respectively.

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

As of December 31, 2020, the Company’s wholly-owned subsidiary, Ticonderoga Insurance Company, or Ticonderoga, a Vermont licensed captive insurance company, was a member of the Federal Home Loan Bank of New York, or FHLBNY. As a member, Ticonderoga was able to borrow funds from the FHLBNY in the form of secured advances that bore interest at a floating rate. In February 2021, Ticonderoga’s membership in FHLB New York was terminated and all advances were repaid. As of December 31, 2020, Ticonderoga had a total of $60.0 million in outstanding secured advances with an average spread of 21 basis points over 30-day LIBOR.

## Master Repurchase Agreement

The Company entered into a Master Repurchase Agreement, or MRA, known as the 2017 MRA, which provides us with the ability to sell certain mortgage investments with a simultaneous agreement to repurchase the same at a certain date or on demand. We seek to mitigate risks associated with our repurchase agreement by managing the credit quality of our assets, early repayments, interest rate volatility, liquidity, and market value. The margin call provisions under our repurchase facility permit valuation adjustments based on capital markets activity, and are not limited to collateral-specific credit marks. To monitor credit risk associated with our debt investments, our asset management team regularly reviews our investment portfolio and is in contact with our borrowers in order to monitor the collateral and enforce our rights as necessary. The risk associated with potential margin calls is further mitigated by our ability to collateralize the facility with additional assets from our portfolio of debt investments, our ability to satisfy margin calls with cash or cash equivalents and our access to additional liquidity. As of December 31, 2020, there have been no margin calls on the 2017 MRA.

In April 2018, we increased the maximum facility capacity from $300.0 million to $400.0 million. The facility bears interest on a floating rate basis at a spread to 30-day LIBOR based on the pledged collateral and advance rate and is scheduled to mature in June 2021, with a one-year extension option. At December 31, 2020, the facility had no outstanding balance.

## 9. Corporate Indebtedness

## 2017 Credit Facility

In November 2017, we entered into an amendment to the credit facility, referred to as the 2017 credit facility, that was originally entered into by the Company in November 2012, or the 2012 credit facility. As of December 31, 2020, the 2017 credit facility consisted of a $1.5 billion revolving credit facility, a $1.3 billion term loan (or "Term Loan A"), and a $200.0 million term loan (or "Term Loan B") with maturity dates of March 31, 2022, March 31, 2023, and November 21, 2024, respectively. The revolving credit facility has two 6-month as-of-right extension options to March 31, 2023. We also have an option, subject to customary conditions, to increase the capacity of the credit facility to $4.5 billion at any time prior to the maturity dates for the revolving credit facility and term loans without the consent of existing lenders, by obtaining additional commitments from our existing lenders and other financial institutions.

As of December 31, 2020, the 2017 credit facility bore interest at a spread over 30-day LIBOR ranging from (i) 82.5 basis points to 155 basis points for loans under the revolving credit facility, (ii) 90 basis points to 175 basis points for loans under Term Loan A, and (iii) 85 basis points to 165 basis points for loans under Term Loan B, in each case based on the credit rating assigned to the senior unsecured long term indebtedness of the Company. In instances where there are either only two ratings available or where there are more than two and the difference between them is one rating category, the applicable rating shall be the highest rating. In instances where there are more than two ratings and the difference between the highest and the lowest is two or more rating categories, then the applicable rating used is the average of the highest two, rounded down if the average is not a recognized category.

At December 31, 2020, the applicable spread was 100 basis points for the revolving credit facility, 110 basis points for Term Loan A, and 100 basis points for Term Loan B. We are required to pay quarterly in arrears a 12.5 to 30 basis point facility fee on the total commitments under the revolving credit facility based on the credit rating assigned to the senior unsecured long term indebtedness of the Company. As of December 31, 2020, the facility fee was 20 basis points.

As of December 31, 2020, we had $26.0 million of outstanding letters of credit, $110.0 million drawn under the revolving credit facility and $1.5 billion outstanding under the term loan facilities, with total undrawn capacity of $1.4 billion under the



# SL Green Realty Corp. and SL Green Operating Partnership, L.P.
Notes to Consolidated Financial Statements (cont.)
December 31, 2020

2017 credit facility. At December 31, 2020 and December 31, 2019, the revolving credit facility had a carrying value of $105.3 million and $234.0 million, respectively, net of deferred financing costs. At December 31, 2020 and December 31, 2019, the term loan facilities had a carrying value of $1.5 billion and $1.5 billion, respectively, net of deferred financing costs.

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

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

## Senior Unsecured Notes

The following table sets forth our senior unsecured notes and other related disclosures as of December 31, 2020 and 2019, respectively, by scheduled maturity date (dollars in thousands):

<table><tr><td>Issuance</td><td>December 31, 2020 Unpaid Principal Balance</td><td>December 31, 2020 Accreted Balance</td><td>December 31, 2019 Accreted Balance</td><td>Interest Rate (1)</td><td>Initial Term (in Years)</td><td>Maturity Date</td></tr><tr><td>August 7, 2018 (2)(3)</td><td>$ 350,000</td><td>$ 350,000</td><td>$ 350,000</td><td>1.52 %</td><td>3</td><td>August 2021</td></tr><tr><td>October 5, 2017 (2)</td><td>500,000</td><td>499,803</td><td>499,695</td><td>3.25 %</td><td>5</td><td>October 2022</td></tr><tr><td>November 15, 2012 (4)</td><td>300,000</td><td>302,086</td><td>303,142</td><td>4.50 %</td><td>10</td><td>December 2022</td></tr><tr><td>December 17, 2015 (5)</td><td>100,000</td><td>100,000</td><td>100,000</td><td>4.27 %</td><td>10</td><td>December 2025</td></tr><tr><td>March 16, 2010 (6)</td><td>—</td><td>—</td><td>250,000</td><td></td><td></td><td></td></tr><tr><td></td><td>$ 1,250,000</td><td>$ 1,251,889</td><td>$ 1,502,837</td><td></td><td></td><td></td></tr><tr><td>Deferred financing costs, net</td><td></td><td>(3,670)</td><td>(5,990)</td><td></td><td></td><td></td></tr><tr><td></td><td>$ 1,250,000</td><td>$ 1,248,219</td><td>$ 1,496,847</td><td></td><td></td><td></td></tr></table>

(1) Interest rate as of December 31, 2020, taking into account interest rate hedges in effect during the period.

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

(3) The notes are subject to redemption at the Company's option, in whole but not in part, at a redemption price equal to 100% of the principal amount of the notes, plus unpaid accrued interest thereon to the redemption date. In April 2020, the Company entered into $350.0 million of fixed rate interest swaps at a rate of 0.54375% through August 2021.

(4) In October 2017, the Company and the Operating Partnership as co-obligors issued an additional $100.0 million of 4.50% senior unsecured notes due December 2022. The notes were priced at 105.334% of par.

(5) Issued by the Company and the Operating Partnership as co-obligors.

(6) In March 2020, the notes were repaid.

## Restrictive Covenants

The terms of the 2017 credit facility and certain of our senior unsecured notes include certain restrictions and covenants which may limit, among other things, our ability to pay dividends, make certain types of investments, incur additional indebtedness, incur liens and enter into negative pledge agreements and dispose of assets, and which require compliance with financial ratios relating to the maximum ratio of total indebtedness to total asset value, a minimum ratio of EBITDA to fixed charges, a maximum ratio of secured indebtedness to total asset value and a maximum ratio of unsecured indebtedness to unencumbered asset value. The dividend restriction referred to above provides that, we will not during any time when a default is continuing, make distributions with respect to common stock or other equity interests, except to enable the Company to continue to qualify as a REIT for Federal income tax purposes. As of December 31, 2020 and 2019, we were in compliance with all such covenants.

## Junior Subordinated Deferrable Interest Debentures

In June 2005, the Company and the Operating Partnership issued $100.0 million in unsecured trust preferred securities through a newly formed trust, SL Green Capital Trust I, or the Trust, which is a wholly-owned subsidiary of the Operating Partnership. The securities mature in 2035 and bear interest at a floating rate of 125 basis points over the three-month LIBOR. Interest payments may be deferred for a period of up to eight consecutive quarters if the Operating Partnership exercises its right to defer such payments. The Trust preferred securities are redeemable at the option of the Operating Partnership, in whole or in part, with no prepayment premium. We do not consolidate the Trust even though it is a variable interest entity as we are not the primary beneficiary. Because the Trust is not consolidated, we have recorded the debt on our consolidated balance sheets and the related payments are classified as interest expense.



# SL Green Realty Corp. and SL Green Operating Partnership, L.P.
Notes to Consolidated Financial Statements (cont.)
December 31, 2020

## Principal Maturities

Combined aggregate principal maturities of mortgages and other loans payable, the 2017 credit facility, trust preferred securities, senior unsecured notes and our share of joint venture debt as of December 31, 2020, including as-of-right extension options, were as follows (in thousands):

<table><tr><td></td><td>Scheduled Amortization</td><td>Principal</td><td>Revolving Credit Facility</td><td>Unsecured Term Loans</td><td>Trust Preferred Securities</td><td>Senior Unsecured Notes</td><td>Total</td><td>Joint Venture Debt</td></tr><tr><td>2021</td><td>$ 10,700</td><td>$ 300,027</td><td>$ —</td><td>$ —</td><td>$ —</td><td>$ 350,000</td><td>$ 660,727</td><td>$ 1,085,279</td></tr><tr><td>2022</td><td>8,767</td><td>255,435</td><td>—</td><td>—</td><td>—</td><td>800,000</td><td>1,064,202</td><td>540,947</td></tr><tr><td>2023</td><td>6,599</td><td>560,000</td><td>110,000</td><td>1,300,000</td><td>—</td><td>—</td><td>1,976,599</td><td>491,066</td></tr><tr><td>2024</td><td>5,285</td><td>272,749</td><td>—</td><td>200,000</td><td>—</td><td>—</td><td>478,034</td><td>617,010</td></tr><tr><td>2025</td><td>829</td><td>—</td><td>—</td><td>—</td><td>—</td><td>100,000</td><td>100,829</td><td>1,385,256</td></tr><tr><td>Thereafter</td><td>930</td><td>580,039</td><td>—</td><td>—</td><td>100,000</td><td>—</td><td>680,969</td><td>552,813</td></tr><tr><td></td><td>$ 33,110</td><td>$ 1,968,250</td><td>$ 110,000</td><td>$ 1,500,000</td><td>$ 100,000</td><td>$ 1,250,000</td><td>$ 4,961,360</td><td>$ 4,672,371</td></tr></table>

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

<table><tr><td rowspan="2"></td><td colspan="3">Year Ended December 31,</td></tr><tr><td>2020</td><td>2019</td><td>2018</td></tr><tr><td>Interest expense before capitalized interest</td><td>$ 185,934</td><td>$ 246,848</td><td>$ 236,719</td></tr><tr><td>Interest on financing leases</td><td>8,091</td><td>3,243</td><td>8,069</td></tr><tr><td>Interest capitalized</td><td>(75,167)</td><td>(55,446)</td><td>(34,162)</td></tr><tr><td>Interest income</td><td>(2,179)</td><td>(4,124)</td><td>(1,957)</td></tr><tr><td>Interest expense, net</td><td>$ 116,679</td><td>$ 190,521</td><td>$ 208,669</td></tr></table>

## 10. Related Party Transactions

## Cleaning/ Security/ Messenger and Restoration Services

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

Income earned from the profit participation, which is included in other income on the consolidated statements of operations, was $1.4 million, $3.9 million and $3.9 million for the years ended December 31, 2020, 2019 and 2018, respectively.

We also recorded expenses, inclusive of capitalized expenses, of $13.3 million, $18.8 million and $18.8 million for the years ended December 31, 2020, 2019 and 2018, respectively, for these services (excluding services provided directly to tenants).

## Management Fees

S.L. Green Management Corp., a consolidated entity, receives property management fees from an entity in which Stephen L. Green owns an interest. We received management fees from this entity of $0.6 million, $0.6 million and $0.6 million for the years ended December 31, 2020, 2019, and 2018 respectively.



# SL Green Realty Corp. and SL Green Operating Partnership, L.P.
Notes to Consolidated Financial Statements (cont.)
December 31, 2020

## One Vanderbilt Investment

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

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

## Other

We are entitled to receive fees for providing management, leasing, construction supervision, and asset management services to certain of our joint ventures as further described in Note 6, "Investments in Unconsolidated Joint Ventures." Amounts due from joint ventures and related parties at December 31, 2020 and 2019 consisted of the following (in thousands):

<table><tr><td rowspan="2"></td><td colspan="3">December 31,</td></tr><tr><td>2020</td><td>2019</td><td></td></tr><tr><td>Due from joint ventures</td><td>$ 27,006</td><td>$ 9,352</td><td></td></tr><tr><td>Other</td><td>7,651</td><td>11,769</td><td></td></tr><tr><td>Related party receivables</td><td>$ 34,657</td><td>$ 21,121</td><td></td></tr></table>

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

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

## Common Units of Limited Partnership Interest in the Operating Partnership

As of December 31, 2020 and 2019, the noncontrolling interest unit holders owned 5.44%, or 3,938,823 units, and 5.17%, or 4,195,875 units, of the Operating Partnership, respectively, inclusive of retroactive adjustments to reflect the reverse stock split effectuated by SL Green in January 2021. As of December 31, 2020, 3,938,823 shares of our common stock were reserved for issuance upon the redemption of units of limited partnership interest of the Operating Partnership.

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

Below is a summary of the activity relating to the noncontrolling interests in the Operating Partnership as of December 31, 2020 and 2019 (in thousands):



# SL Green Realty Corp. and SL Green Operating Partnership, L.P.
Notes to Consolidated Financial Statements (cont.)
December 31, 2020

<table><tr><td rowspan="2"></td><td colspan="2">December 31,</td></tr><tr><td>2020</td><td>2019</td></tr><tr><td>Balance at beginning of period</td><td>$ 409,862</td><td>$ 387,805</td></tr><tr><td>Distributions</td><td>(12,652)</td><td>(14,729)</td></tr><tr><td>Issuance of common units</td><td>12,018</td><td>19,403</td></tr><tr><td>Redemption and conversion of common units</td><td>(36,085)</td><td>(27,962)</td></tr><tr><td>Net income</td><td>20,016</td><td>13,301</td></tr><tr><td>Accumulated other comprehensive loss allocation</td><td>(2,299)</td><td>(2,276)</td></tr><tr><td>Fair value adjustment</td><td>(32,598)</td><td>34,320</td></tr><tr><td>Balance at end of period</td><td>$ 358,262</td><td>$ 409,862</td></tr></table>

## Preferred Units of Limited Partnership Interest in the Operating Partnership

Below is a summary of the preferred units of limited partnership interest in the Operating Partnership as of December 31, 2020:

<table><tr><td>Issuance</td><td>Stated Distribution Rate</td><td>Number of Units Authorized</td><td>Number of Units Issued</td><td>Number of Units Outstanding</td><td>Dividends Per Unit \( ^{(1)} \)</td><td>Liquidation Preference Per Unit \( ^{(2)} \)</td><td>Conversion Price Per Unit \( ^{(3)} \)</td><td>Date of Issuance</td></tr><tr><td>Series A \( ^{(4)} \)</td><td>3.50 %</td><td>109,161</td><td>109,161</td><td>109,161</td><td>35.0000</td><td>1,000.00</td><td>—</td><td>August 2015</td></tr><tr><td>Series F</td><td>7.00 %</td><td>60</td><td>60</td><td>60</td><td>70.0000</td><td>1,000.00</td><td>29.12</td><td>January 2007</td></tr><tr><td>Series G \( ^{(4)} \)</td><td>4.50 %</td><td>1,902,000</td><td>1,902,000</td><td>863,972</td><td>1.1250</td><td>25.00</td><td>88.50</td><td>January 2012</td></tr><tr><td>Series K</td><td>3.50 %</td><td>700,000</td><td>563,954</td><td>341,677</td><td>0.8750</td><td>25.00</td><td>134.67</td><td>August 2014</td></tr><tr><td>Series L</td><td>4.00 %</td><td>500,000</td><td>378,634</td><td>372,634</td><td>1.0000</td><td>25.00</td><td>—</td><td>August 2014</td></tr><tr><td>Series M</td><td>3.75 %</td><td>1,600,000</td><td>1,600,000</td><td>96,357</td><td>0.9375</td><td>25.00</td><td>—</td><td>February 2015</td></tr><tr><td>Series P</td><td>4.00 %</td><td>200,000</td><td>200,000</td><td>200,000</td><td>1.0000</td><td>25.00</td><td>—</td><td>July 2015</td></tr><tr><td>Series Q</td><td>3.50 %</td><td>268,000</td><td>268,000</td><td>268,000</td><td>0.8750</td><td>25.00</td><td>148.95</td><td>July 2015</td></tr><tr><td>Series R</td><td>3.50 %</td><td>400,000</td><td>400,000</td><td>400,000</td><td>0.8750</td><td>25.00</td><td>154.89</td><td>August 2015</td></tr><tr><td>Series S</td><td>4.00 %</td><td>1,077,280</td><td>1,077,280</td><td>1,077,280</td><td>1.0000</td><td>25.00</td><td>—</td><td>August 2015</td></tr><tr><td>Series V</td><td>3.50 %</td><td>40,000</td><td>40,000</td><td>40,000</td><td>0.8750</td><td>25.00</td><td>—</td><td>May 2019</td></tr><tr><td>Series W \( ^{(6)} \)</td><td>(6)</td><td>1</td><td>1</td><td>1</td><td>(6)</td><td>(6)</td><td>(6)</td><td>January 2020</td></tr></table>

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

(2) Units are redeemable at any time at par for cash at the option of the unitholder unless otherwise specified.

(3) If applicable, units are convertible into a number of common units of limited partnership interest in the Operating Partnership equal to (i) the liquidation preference plus accumulated and undisputed distributions on the conversion date divided by (ii) the amount shown in the table.

(4) Issued through a consolidated subsidiary. The units are convertible on a one-for-one basis, into the Series B Preferred Units of limited partnership interest, or the Subsidiary Series B Preferred Units. The Subsidiary Series B Preferred Units can be converted at any time, at the option of the unitholder, into a number of common stock equal to 6.71348 shares of common stock for each Subsidiary Series B Preferred Unit. As of December 31, 2020, no Subsidiary Series B Preferred Units have been issued.

(5) Common units of limited partnership interest in the Operating Partnership issued in a conversion may be redeemed in exchange for our common stock on a 1-to-1 basis. The Series G Preferred Units also provide the holder with the right to require the Operating Partnership to repurchase the Series G Preferred Units for cash before January 31, 2022.

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



# SL Green Realty Corp. and SL Green Operating Partnership, L.P.
Notes to Consolidated Financial Statements (cont.)
December 31, 2020

Below is a summary of the activity relating to the preferred units in the Operating Partnership as of December 31, 2020 and 2019 (in thousands):

<table><tr><td rowspan="2"></td><td colspan="3">December 31,</td></tr><tr><td>2020</td><td>2019</td><td></td></tr><tr><td>Balance at beginning of period</td><td>$ 283,285</td><td>$ 300,427</td><td></td></tr><tr><td>Issuance of preferred units</td><td>—</td><td>1,000</td><td></td></tr><tr><td>Redemption of preferred units</td><td>(82,750)</td><td>(18,142)</td><td></td></tr><tr><td>Accrued dividends on preferred units</td><td>1,634</td><td>—</td><td></td></tr><tr><td>Balance at end of period</td><td>$ 202,169</td><td>$ 283,285</td><td></td></tr></table>

## 12. Stockholders' Equity of the Company

## Common Stock

Our authorized capital stock consists of 260,000,000 shares, $0.01 par value per share, consisting of 160,000,000 shares of common stock, $0.01 par value per share, 75,000,000 shares of excess stock, at $0.01 par value per share, and 25,000,000 shares of preferred stock, par value $0.01 per share. As of December 31, 2020, 68,508,127 shares of common stock and no shares of excess stock were issued and outstanding.

On December 4, 2020 our Board of Directors declared an ordinary dividend and a special dividend (together, "the Total Dividend"). The Total Dividend was paid on January 15, 2021 to shareholders of record at the close of business on December 15, 2020 ("the Record Date"). Shareholders had the opportunity to elect to receive the Total Dividend in the form of all cash or all stock, subject to proration if either option was oversubscribed.

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

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

## Share Repurchase Program

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



# SL Green Realty Corp. and SL Green Operating Partnership, L.P.
Notes to Consolidated Financial Statements (cont.)
December 31, 2020

At December 31, 2020, repurchases executed under the program were as follows:

<table><tr><td>Period</td><td>Shares repurchased</td><td>Average price paid per share</td><td>Cumulative number of shares repurchased as part of the repurchase plan or programs</td></tr><tr><td>Year ended 2017</td><td>8,105,881</td><td>$104.61</td><td>8,105,881</td></tr><tr><td>Year ended 2018</td><td>9,468,617</td><td>$99.03</td><td>17,574,498</td></tr><tr><td>Year ended 2019</td><td>4,465,857</td><td>$86.06</td><td>22,040,355</td></tr><tr><td>Year ended 2020 \( ^{(1)} \)</td><td>8,538,995</td><td>$62.39</td><td>30,579,350</td></tr></table>

(1) Includes 63,374 shares of common stock repurchased by the Company in December 2020 that were settled in January 2021.

## Perpetual Preferred Stock

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

## Dividend Reinvestment and Stock Purchase Plan ("DRSPP")

In February 2018, the Company filed a registration statement with the SEC for our dividend reinvestment and stock purchase plan, or DRSPP, which automatically became effective upon filing. The Company registered 3,500,000 shares of our common stock under the DRSPP. The DRSPP commenced on September 24, 2001.

The following table summarizes SL Green common stock issued, and proceeds received from dividend reinvestments and/or stock purchases under the DRSPP for the years ended December 31, 2020, 2019, and 2018, respectively (dollars in thousands):

<table><tr><td rowspan="2"></td><td colspan="4">Year Ended December 31,</td></tr><tr><td>2020</td><td>2019</td><td>2018</td><td></td></tr><tr><td>Shares of common stock issued</td><td>16,676</td><td>3,757</td><td>1,359</td><td></td></tr><tr><td>Dividend reinvestments/stock purchases under the DRSPP</td><td>1,006</td><td>334</td><td>136</td><td></td></tr></table>

## Earnings per Share

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



# SL Green Realty Corp. and SL Green Operating Partnership, L.P.
Notes to Consolidated Financial Statements (cont.)
December 31, 2020

SL Green's earnings per share for the years ended December 31, 2020, 2019, and 2018 are computed as follows (in thousands):

<table><tr><td rowspan="2">Numerator</td><td colspan="4">Year Ended December 31,</td></tr><tr><td>2020</td><td>2019</td><td>2018</td><td></td></tr><tr><td>Basic Earnings:</td><td></td><td></td><td></td><td></td></tr><tr><td>Income attributable to SL Green common stockholders</td><td>$ 356,105</td><td>$ 255,484</td><td>$ 232,312</td><td></td></tr><tr><td>Less: distributed earnings allocated to participating securities</td><td>(1,687)</td><td>$ (1,702)</td><td>$ (1,042)</td><td></td></tr><tr><td>Less: undistributed earnings allocated to participating securities</td><td>(83)</td><td>—</td><td>—</td><td></td></tr><tr><td>Net income attributable to SL Green common stockholders (numerator for basic earnings per share)</td><td>$ 354,335</td><td>$ 253,782</td><td>$ 231,270</td><td></td></tr><tr><td>Add back: Dilutive effect of earnings allocated to participating securities</td><td>1,770</td><td>1,702</td><td>1,042</td><td></td></tr><tr><td>Add back: Effect of dilutive securities (redemption of units to common shares)</td><td>20,016</td><td>13,301</td><td>12,216</td><td></td></tr><tr><td>Income attributable to SL Green common stockholders (numerator for diluted earnings per share)</td><td>$ 376,121</td><td>$ 268,785</td><td>$ 244,528</td><td></td></tr><tr><td rowspan="2">Denominator</td><td colspan="4">Year Ended December 31,</td></tr><tr><td>2020</td><td>2019</td><td>2018</td><td></td></tr><tr><td>Basic Shares:</td><td></td><td></td><td></td><td></td></tr><tr><td>Weighted average common stock outstanding</td><td>72,552</td><td>79,415</td><td>84,090</td><td></td></tr><tr><td>Effect of Dilutive Securities:</td><td></td><td></td><td></td><td></td></tr><tr><td>Operating Partnership units redeemable for common shares</td><td>4,096</td><td>4,275</td><td>4,562</td><td></td></tr><tr><td>Stock-based compensation plans</td><td>440</td><td>544</td><td>419</td><td></td></tr><tr><td>Contingently issuable shares from special dividend declared December 4, 2020</td><td>155</td><td>—</td><td>—</td><td></td></tr><tr><td>Diluted weighted average common stock outstanding</td><td>77,243</td><td>84,234</td><td>89,071</td><td></td></tr></table>

SL Green has excluded 1,728,136, 1,217,153 and 1,106,363 common stock equivalents from the diluted shares outstanding for the years ended December 31, 2020, 2019, and 2018 respectively, as they were anti-dilutive.

## 13. Partners' Capital of the Operating Partnership

The Company is the sole managing general partner of the Operating Partnership and at December 31, 2020 owned 68,508,127 general and limited partnership interests in the Operating Partnership and 9,200,000 Series I Preferred Units. Partnership interests in the Operating Partnership are denominated as “common units of limited partnership interest” (also referred to as “OP Units”) or “preferred units of limited partnership interest” (also referred to as “Preferred Units”). All references to OP Units and Preferred Units outstanding exclude such units held by the Company. A holder of an OP Unit may present such OP Unit to the Operating Partnership for redemption at any time (subject to restrictions agreed upon at the issuance of OP Units to particular holders that may restrict such right for a period of time, generally one year from issuance). Upon presentation of an OP Unit for redemption, the Operating Partnership must redeem such OP Unit in exchange for the cash equal to the then value of a share of common stock of the Company, except that the Company may, at its election, in lieu of cash redemption, acquire such OP Unit for one share of common stock. Because the number of shares of common stock outstanding at all times equals the number of OP Units that the Company owns, one share of common stock is generally the economic equivalent of one OP Unit, and the quarterly distribution that may be paid to the holder of an OP Unit equals the quarterly dividend that may be paid to the holder of a share of common stock. Each series of Preferred Units makes a distribution that is set in accordance with an amendment to the partnership agreement of the Operating Partnership. Preferred Units may also be convertible into OP Units at the election of the holder thereof or the Company, subject to the terms of such Preferred Units.

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

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



# SL Green Realty Corp. and SL Green Operating Partnership, L.P.
Notes to Consolidated Financial Statements (cont.)
December 31, 2020

## Limited Partner Units

As of December 31, 2020, limited partners other than SL Green owned 3,938,823 common units of the Operating Partnership.

## Preferred Units

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

## Earnings per Unit

The Operating Partnership's earnings per unit for the years ended December 31, 2020, 2019, and 2018 respectively are computed as follows (in thousands):

<table><tr><td rowspan="2">Numerator</td><td colspan="4">Year Ended December 31,</td></tr><tr><td>2020</td><td>2019</td><td>2018</td><td></td></tr><tr><td>Basic Earnings:</td><td></td><td></td><td></td><td></td></tr><tr><td>Income attributable to SLGOP common unitholders</td><td>$ 376,121</td><td>$ 268,785</td><td>$ 244,528</td><td></td></tr><tr><td>Less: distributed earnings allocated to participating securities</td><td>(1,687)</td><td>$ (1,702)</td><td>$ (1,042)</td><td></td></tr><tr><td>Less: undistributed earnings allocated to participating securities</td><td>(83)</td><td>—</td><td>—</td><td></td></tr><tr><td>Net Income attributable to SLGOP common unitholders (numerator for basic earnings per unit)</td><td>$ 374,351</td><td>$ 267,083</td><td>$ 243,486</td><td></td></tr><tr><td>Add back: Dilutive effect of earnings allocated to participating securities</td><td>1,770</td><td>1,702</td><td>1,042</td><td></td></tr><tr><td>Income attributable to SLGOP common unitholders</td><td>$ 376,121</td><td>$ 268,785</td><td>$ 244,528</td><td></td></tr><tr><td colspan="4">Year Ended December 31,</td><td></td></tr><tr><td>Denominator</td><td>2020</td><td>2019</td><td>2018</td><td></td></tr><tr><td>Basic units:</td><td></td><td></td><td></td><td></td></tr><tr><td>Weighted average common units outstanding</td><td>76,647</td><td>83,690</td><td>88,652</td><td></td></tr><tr><td>Effect of Dilutive Securities:</td><td></td><td></td><td></td><td></td></tr><tr><td>Stock-based compensation plans</td><td>441</td><td>544</td><td>419</td><td></td></tr><tr><td>Contingently issuable units from special dividend declared December 4, 2020</td><td>155</td><td>—</td><td>—</td><td></td></tr><tr><td>Diluted weighted average common units outstanding</td><td>77,243</td><td>84,234</td><td>89,071</td><td></td></tr></table>

The Operating Partnership has excluded 1,728,136, 1,217,153, and 1,106,363 common unit equivalents from the diluted units outstanding for the years ended December 31, 2020, 2019, and 2018 respectively, as they were anti-dilutive.

## 14. Share-based Compensation

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



# SL Green Realty Corp. and SL Green Operating Partnership, L.P.
Notes to Consolidated Financial Statements (cont.)
December 31, 2020

The Fourth Amended and Restated 2005 Stock Option and Incentive Plan, or the 2005 Plan, was approved by the Company's board of directors in April 2016 and its stockholders in June 2016 at the Company's annual meeting of stockholders. The 2005 Plan authorizes the issuance of stock options, stock appreciation rights, unrestricted and restricted stock, phantom shares, dividend equivalent rights, cash-based awards and other equity-based awards. Subject to adjustments upon certain corporate transactions or events, awards with respect to up to a maximum of 27,030,000 fungible units may be granted under the 2005 Plan. Currently, different types of awards count against the limit on the number of fungible units differently, with (1) full-value awards (i.e., those that deliver the full value of the award upon vesting, such as restricted stock) counting as 3.74 Fungible Units per share subject to such awards, (2) stock options, stock appreciation rights and other awards that do not deliver full value and expire five years from the date of grant counting as 0.73 fungible units per share subject to such awards, and (3) all other awards (e.g., 10-year stock options) counting as 1.0 fungible units per share subject to such awards. Awards granted under the 2005 Plan prior to the approval of the fourth amendment and restatement in June 2016 continue to count against the fungible unit limit based on the ratios that were in effect at the time such awards were granted, which may be different than the current ratios. As a result, depending on the types of awards issued, the 2005 Plan may result in the issuance of more or less than 27,030,000 shares. If a stock option or other award granted under the 2005 Plan expires or terminates, the common stock subject to any portion of the award that expires or terminates without having been exercised or paid, as the case may be, will again become available for the issuance of additional awards. Shares of our common stock distributed under the 2005 Plan may be treasury shares or authorized but unissued shares. Currently, unless the 2005 Plan has been previously terminated by the Company's board of directors, new awards may be granted under the 2005 Plan until June 2, 2026, which is the tenth anniversary of the date that the 2005 Plan was most recently approved by the Company's stockholders. As of December 31, 2020, 3.1 million fungible units were available for issuance under the 2005 Plan after reserving for shares underlying outstanding restricted stock units, phantom stock units granted pursuant to our Non-Employee Directors' Deferral Program and LTIP Units.

## Stock Options and Class O LTIP Units

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

The fair value of each stock option or LTIP Unit granted is estimated on the date of grant using the Black-Scholes option pricing model based on historical information with the following weighted average assumptions for grants during the year ended December 31, 2018. There were no grants during the years ended December 31, 2019 and 2020.

<table><tr><td></td><td>2020</td><td>2019</td><td>2018</td></tr><tr><td>Dividend yield</td><td>N/A</td><td>N/A</td><td>2.85%</td></tr><tr><td>Expected life</td><td>N/A</td><td>N/A</td><td>3.5 years</td></tr><tr><td>Risk-free interest rate</td><td>N/A</td><td>N/A</td><td>2.48%</td></tr><tr><td>Expected stock price volatility</td><td>N/A</td><td>N/A</td><td>22.00%</td></tr></table>



# SL Green Realty Corp. and SL Green Operating Partnership, L.P.
Notes to Consolidated Financial Statements (cont.)
December 31, 2020

A summary of the status of the Company's stock options as of December 31, 2020, 2019, and 2018 and changes during the years ended December 31, 2020, 2019, and 2018 are as follows:

<table><tr><td rowspan="2"></td><td colspan="3">2020</td><td colspan="3">2019</td><td colspan="3">2018</td></tr><tr><td>Options Outstanding</td><td>Weighted Average Exercise Price</td><td>Options Outstanding</td><td>Weighted Average Exercise Price</td><td>Options Outstanding</td><td>Weighted Average Price</td><td>Options Outstanding</td><td>Weighted Average Exercise Price</td><td></td></tr><tr><td>Balance at beginning of year</td><td>$ 1,007,665</td><td>$ 105.35</td><td>$ 1,104,780</td><td>$ 106.56</td><td>$ 1,504,809</td><td>$ 104.44</td><td></td><td></td><td></td></tr><tr><td>Granted</td><td>—</td><td>—</td><td>—</td><td>—</td><td>5,830</td><td>100.77</td><td></td><td></td><td></td></tr><tr><td>Exercised</td><td>—</td><td>—</td><td>—</td><td>—</td><td>(307,334)</td><td>92.85</td><td></td><td></td><td></td></tr><tr><td>Lapsed or canceled</td><td>(222,670)</td><td>114.97</td><td>(97,115)</td><td>119.19</td><td>(98,525)</td><td>116.52</td><td></td><td></td><td></td></tr><tr><td>Balance at end of year</td><td>$ 784,995</td><td>$ 102.62</td><td>$ 1,007,665</td><td>$ 105.35</td><td>$ 1,104,780</td><td>$ 106.56</td><td></td><td></td><td></td></tr><tr><td>Options exercisable at end of year</td><td>784,022</td><td>$ 102.62</td><td>888,988</td><td>$ 104.66</td><td>760,834</td><td>$ 104.24</td><td></td><td></td><td></td></tr><tr><td>Weighted average fair value of options granted during the year</td><td>$ —</td><td>$ —</td><td>—</td><td>$ —</td><td>$ 84,068</td><td></td><td></td><td></td><td></td></tr></table>

The remaining weighted average contractual life of the options outstanding was 2.2 years and the remaining weighted average contractual life of the options exercisable was 2.2 years.

During the years ended December 31, 2020, 2019, and 2018, we recognized compensation expense for these options of $0.0 million, $2.5 million, and $5.4 million, respectively. As of December 31, 2020, there was no unrecognized compensation cost related to unvested stock options.

## Restricted Shares

Shares are granted to certain employees, including our executives, and vesting will occur annually upon the completion of a service period or our meeting established financial performance criteria. Annual vesting occurs at rates ranging from 15% to 35% once performance criteria are reached.

A summary of the Company's restricted stock as of December 31, 2020, 2019, and 2018 and charges during the years ended December 31, 2020, 2019, and 2018 are as follows:

<table><tr><td></td><td>2020</td><td>2019</td><td>2018</td></tr><tr><td>Balance at beginning of year</td><td>3,465,347</td><td>3,354,142</td><td>3,204,703</td></tr><tr><td>Granted</td><td>8,959</td><td>122,768</td><td>158,281</td></tr><tr><td>Canceled</td><td>(34,632)</td><td>(11,563)</td><td>(8,842)</td></tr><tr><td>Balance at end of year</td><td>3,439,674</td><td>3,465,347</td><td>3,354,142</td></tr><tr><td>Vested during the year</td><td>128,891</td><td>110,048</td><td>89,502</td></tr><tr><td>Compensation expense recorded</td><td>$ 10,895,459</td><td>$ 12,892,249</td><td>$ 12,757,704</td></tr><tr><td>Total fair value of restricted stock granted during the year</td><td>$ 734,315</td><td>$ 11,131,181</td><td>$ 13,440,503</td></tr></table>

The fair value of restricted stock that vested during the years ended December 31, 2020, 2019, and 2018 was $12.5 million, $12.1 million and $9.8 million, respectively. As of December 31, 2020, there was $7.9 million of total unrecognized compensation cost related to restricted stock, which is expected to be recognized over a weighted average period of 1.4 years.

For the years ended December 31, 2020, 2019, and 2018, $2.2 million, $2.1 million, and $6.3 million, respectively, was capitalized to assets associated with compensation expense related to our long-term compensation plans, restricted stock and stock options.

We granted LTIP Units, which include bonus, time-based and performance based awards, with a fair value of $37.0 million and $58.3 million during the years ended December 31, 2020 and 2019, respectively. The grant date fair value of the LTIP Unit awards was calculated in accordance with ASC 718. A third party consultant determined the fair value of the LTIP Units to have a discount from our common stock price. The discount was calculated by considering the inherent uncertainty that the LTIP Units will reach parity with other common partnership units and the illiquidity due to transfer restrictions. As of



# SL Green Realty Corp. and SL Green Operating Partnership, L.P.
Notes to Consolidated Financial Statements (cont.)
December 31, 2020

December 31, 2020, there was $36.0 million of total unrecognized compensation expense related to the time-based and performance based LTIP Unit awards, which is expected to be recognized over a weighted average period of 1.8 years.

During the years ended December 31, 2020, 2019, and 2018, we recorded compensation expense related to bonus, time-based and performance based LTIP Unit awards of $29.4 million, $22.2 million, and $24.4 million, respectively.

## Deferred Compensation Plan for Directors

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

During the year ended December 31, 2020, 20,753 phantom stock units and 8,417 shares of common stock were issued to our board of directors. We recorded compensation expense of $2.3 million during the year ended December 31, 2020 related to the Deferred Compensation Plan. As of December 31, 2020, there were 140,775 phantom stock units outstanding pursuant to our Non-Employee Director's Deferral Program.

## Employee Stock Purchase Plan

In 2007, the Company's board of directors adopted the 2008 Employee Stock Purchase Plan, or ESPP, to encourage our employees to make our business more successful by providing equity-based incentives to eligible employees. The ESPP is intended to qualify as an "employee stock purchase plan" under Section 423 of the Code, and has been adopted by the board to enable our eligible employees to purchase the Company's shares of common stock through payroll deductions. The ESPP became effective on January 1, 2008 with a maximum of 500,000 shares of the common stock available for issuance, subject to adjustment upon a merger, reorganization, stock split or other similar corporate change. The Company filed a registration statement on Form S-8 with the SEC with respect to the ESPP. The common stock is offered for purchase through a series of successive offering periods. Each offering period will be three months in duration and will begin on the first day of each calendar quarter, with the first offering period having commenced on January 1, 2008. The ESPP provides for eligible employees to purchase the common stock at a purchase price equal to 85% of the lesser of (1) the market value of the common stock on the first day of the offering period or (2) the market value of the common stock on the last day of the offering period. The ESPP was approved by our stockholders at our 2008 annual meeting of stockholders. As of December 31, 2020, 156,780 shares of our common stock had been issued under the ESPP.



# SL Green Realty Corp. and SL Green Operating Partnership, L.P.
Notes to Consolidated Financial Statements (cont.)
December 31, 2020

## 15. Accumulated Other Comprehensive (Loss) Income

The following tables set forth the changes in accumulated other comprehensive (loss) income by component as of December 31, 2020, 2019 and 2018 (in thousands):

<table><tr><td></td><td>Net unrealized (loss) gain on derivative instruments (1)</td><td>SL Green&#x27;s share of joint venture net unrealized (loss) gain on derivative instruments (2)</td><td>Net unrealized gain on marketable securities</td><td>Total</td></tr><tr><td>Balance at December 31, 2017</td><td>$ 12,542</td><td>$ 5,020</td><td>$ 1,042</td><td>$ 18,604</td></tr><tr><td>Other comprehensive (loss) income before reclassifications</td><td>(2,252)</td><td>(103)</td><td>51</td><td>(2,304)</td></tr><tr><td>Amounts reclassified from accumulated other comprehensive income</td><td>(574)</td><td>(618)</td><td>—</td><td>(1,192)</td></tr><tr><td>Balance at December 31, 2018</td><td>9,716</td><td>4,299</td><td>1,093</td><td>15,108</td></tr><tr><td>Other comprehensive (loss) income before reclassifications</td><td>(32,723)</td><td>(11,956)</td><td>1,184</td><td>(43,495)</td></tr><tr><td>Amounts reclassified from accumulated other comprehensive loss</td><td>227</td><td>(325)</td><td>—</td><td>(98)</td></tr><tr><td>Balance at December 31, 2019</td><td>(22,780)</td><td>(7,982)</td><td>2,277</td><td>(28,485)</td></tr><tr><td>Other comprehensive loss before reclassifications</td><td>(48,532)</td><td>(7,573)</td><td>(1,256)</td><td>(57,361)</td></tr><tr><td>Amounts reclassified from accumulated other comprehensive loss</td><td>13,897</td><td>4,702</td><td>—</td><td>18,599</td></tr><tr><td>Balance at December 31, 2020</td><td>$ (57,415)</td><td>$ (10,853)</td><td>$ 1,021</td><td>$ (67,247)</td></tr></table>

(1) Amount reclassified from accumulated other comprehensive (loss) income is included in interest expense in the respective consolidated statements of operations. As of December 31, 2020 and 2019, the deferred net (gains) losses from these terminated hedges, which is included in accumulated other comprehensive loss relating to net unrealized gain (loss) on derivative instrument, was $(0.5) million and $(0.7) million, respectively.

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

## 16. Fair Value Measurements

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

The following tables set forth the assets and liabilities that we measure at fair value on a recurring and non-recurring basis by their levels in the fair value hierarchy at December 31, 2020 and 2019 (in thousands):



## SL Green Realty Corp. and SL Green Operating Partnership, L.P.
Notes to Consolidated Financial Statements (cont.)
December 31, 2020

<table><tr><td rowspan="2"></td><td colspan="5">December 31, 2020</td></tr><tr><td>Total</td><td>Level 1</td><td>Level 2</td><td>Level 3</td><td></td></tr><tr><td>Assets:</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Marketable securities</td><td>$     28,570</td><td>$      —</td><td>$     28,570</td><td>$      —</td><td></td></tr><tr><td>Interest rate cap and swap agreements (included in other assets)</td><td>$     28</td><td>$      —</td><td>$     28</td><td>$      —</td><td></td></tr><tr><td>Liabilities:</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Interest rate cap and swap agreements (included in other liabilities)</td><td>$     61,217</td><td>$      —</td><td>$     61,217</td><td>$      —</td><td></td></tr><tr><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr></table>

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

In December 2020, the Company determined there were indicators of impairment in two of its retail assets, 106 Spring Street and 133 Greene Street. The Company tested the recoverability of the assets and, as a result of the carrying amount of the assets being deemed not recoverable, recorded impairments of $39.7 million and $14.1 million, respectively. These charges are included in depreciable real estate reserves and impairments in the consolidated statements of operations. The fair value of the assets were determined primarily using cash flow projections that apply, among other things, estimated revenue and expense growth rates, discount rates and capitalization rates, as well as sales comparison approach, which utilizes comparable sales, listings and sales contracts. All of which are classified as Level 3 inputs.

In 2020, the Company admitted partners to the One Madison Avenue development project, which resulted in the Company no longer retaining a controlling interest in the entity, as defined in ASC 810, and the deconsolidation of our remaining 50.5% interest. We recorded our investment at fair value, which resulted in the recognition of a fair value adjustment of $187.5 million. The fair value of our investment was determined by the terms of the joint venture agreement governing the capitalization of the project.

In December 2018, the Company determined that it was more likely than not that its Suburban properties would be sold or otherwise disposed of significantly before the end of their previously estimated useful life. The Company tested the recoverability of the assets and, as a result of the carrying amount of the assets not being deemed recoverable and exceeding their fair value as measured on a asset by asset basis, recorded a $221.9 million impairment loss. These charges are included in depreciable real estate reserves and impairments in the consolidated statement of operations. The fair value of the assets were determined primarily utilizing cash flow projections that apply, among other things, estimated revenue and expense growth rates, discount rates and capitalization rates, as well as sales comparison approach, which utilizes comparable sales, listings and sales contracts. All of which are classified as Level 3 inputs.

In May 2018, the Company was the successful bidder at the foreclosure of 2 Herald Square, at which time the Company's $250.5 million outstanding principal balance and $7.7 million accrued interest balance were credited to our equity investment in the property. We recorded the assets acquired and liabilities assumed at fair value. This resulted in the recognition of a fair value adjustment of $8.1 million, which is reflected on the Company's consolidated statements of operations within purchase price and other fair value adjustments. This fair value was determined by utilizing our successful bid at the foreclosure of the asset, the agreement to sell a partial interest in the property, and cash flow projections that apply, among other things, estimated revenue and expense growth rates, discount rates and capitalization rates, as well as a sales comparison approach, which utilizes comparable sales, listings and sales contracts, all of which are classified as Level 3 inputs.



# SL Green Realty Corp. and SL Green Operating Partnership, L.P.
Notes to Consolidated Financial Statements (cont.)
December 31, 2020

In January 2018, the partnership agreement for our investment in 919 Third Avenue was modified resulting in the Company no longer having a controlling interest in this investment. As a result the investment was deconsolidated as of January 1, 2018. The Company recorded its non-controlling interest at fair value resulting in a $49.3 million fair value adjustment in the consolidated statements of operations. This fair value was determined using a third party valuation which primarily utilized cash flow projections that apply, among other things, estimated revenue and expense growth rates, discount rates and capitalization rates, as well as sales comparison approach, which utilizes comparable sales, listings and sales contracts. All of which are classified as Level 3 inputs.

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

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

The financial assets and liabilities that are not measured at fair value on our consolidated balance sheets include cash and cash equivalents, restricted cash, accounts receivable, accounts payable and accrued expenses, debt and preferred equity investments, mortgages and other loans payable and other secured and unsecured debt. The carrying amount of cash and cash equivalents, restricted cash, accounts receivable, and accounts payable and accrued expenses reported in our consolidated balance sheets approximates fair value due to the short term nature of these instruments. The fair value of debt and preferred equity investments, which is classified as Level 3, is estimated by discounting the future cash flows using current interest rates at which similar loans with the same maturities would be made to borrowers with similar credit ratings. The fair value of borrowings, which is classified as Level 3, is estimated by discounting the contractual cash flows of each debt instrument to their present value using adjusted market interest rates, which is provided by a third-party specialist.

The following table provides the carrying value and fair value of these financial instruments as of December 31, 2020 and December 31, 2019 (in thousands):

<table><tr><td rowspan="2"></td><td colspan="3">December 31, 2020</td><td colspan="3">December 31, 2019</td></tr><tr><td>Carrying Value (1)</td><td>Fair Value</td><td>Carrying Value (1)</td><td>Fair Value</td><td></td><td></td></tr><tr><td>Debt and preferred equity investments</td><td>$ 1,076,542</td><td>(2)</td><td>$ 1,580,306</td><td>(2)</td><td></td><td></td></tr><tr><td>Fixed rate debt</td><td>$ 3,135,572</td><td>$ 3,237,075</td><td>$ 3,536,286</td><td>$ 3,642,770</td><td></td><td></td></tr><tr><td>Variable rate debt</td><td>1,827,677</td><td>1,822,740</td><td>2,018,434</td><td>2,018,714</td><td></td><td></td></tr><tr><td></td><td>$ 4,963,249</td><td>$ 5,059,815</td><td>$ 5,554,720</td><td>$ 5,661,484</td><td></td><td></td></tr></table>

(1) Amounts exclude net deferred financing costs.

(2) At December 31, 2020, debt and preferred equity investments had an estimated fair value ranging between $1.0 billion and $1.1 billion. At December 31, 2019, debt and preferred equity investments had an estimated fair value ranging between $1.6 billion and $1.7 billion.

Disclosure about fair value of financial instruments was based on pertinent information available to us as of December 31, 2020 and 2019. Such amounts have not been comprehensively revalued for purposes of these financial statements since that date and current estimates of fair value may differ significantly from the amounts presented herein.



# SL Green Realty Corp. and SL Green Operating Partnership, L.P.
Notes to Consolidated Financial Statements (cont.)
December 31, 2020

## 17. Financial Instruments: Derivatives and Hedging

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

The following table summarizes the notional value at inception and fair value of our consolidated derivative financial instruments at December 31, 2020 based on Level 2 information. The notional value is an indication of the extent of our involvement in these instruments at that time, but does not represent exposure to credit, interest rate or market risks (dollars in thousands).

<table><tr><td></td><td>Notional Value</td><td>Strike Rate</td><td>Effective Date</td><td>Expiration Date</td><td>Balance Sheet Location</td><td>Fair Value</td></tr><tr><td>Interest Rate Cap</td><td>$ 85,000</td><td>4.000 %</td><td>March 2019</td><td>March 2021</td><td>Other Assets</td><td>$ —</td></tr><tr><td>Interest Rate Swap</td><td>350,000</td><td>0.544 %</td><td>April 2020</td><td>August 2021</td><td>Other Liabilities</td><td>(771)</td></tr><tr><td>Interest Rate Swap</td><td>111,869</td><td>3.500 %</td><td>December 2020</td><td>November 2021</td><td>Other Assets</td><td>—</td></tr><tr><td>Interest Rate Cap</td><td>510,000</td><td>3.000 %</td><td>June 2020</td><td>December 2021</td><td>Other Assets</td><td>—</td></tr><tr><td>Interest Rate Swap</td><td>200,000</td><td>1.131 %</td><td>July 2016</td><td>July 2023</td><td>Other Liabilities</td><td>(5,004)</td></tr><tr><td>Interest Rate Swap</td><td>100,000</td><td>1.161 %</td><td>July 2016</td><td>July 2023</td><td>Other Liabilities</td><td>(2,578)</td></tr><tr><td>Interest Rate Cap</td><td>600,000</td><td>4.000 %</td><td>August 2020</td><td>September 2023</td><td>Other Assets</td><td>28</td></tr><tr><td>Interest Rate Swap</td><td>150,000</td><td>2.696 %</td><td>January 2019</td><td>January 2024</td><td>Other Liabilities</td><td>(11,344)</td></tr><tr><td>Interest Rate Swap</td><td>150,000</td><td>2.721 %</td><td>January 2019</td><td>January 2026</td><td>Other Liabilities</td><td>(17,714)</td></tr><tr><td>Interest Rate Swap</td><td>200,000</td><td>2.740 %</td><td>January 2019</td><td>January 2026</td><td>Other Liabilities</td><td>(23,806)</td></tr><tr><td></td><td></td><td></td><td></td><td></td><td></td><td>$ (61,189)</td></tr></table>

During the years ended December 31, 2020, 2019, and 2018, we recorded a $0.1 million loss, a $0.1 million loss, and a $0.2 million loss, respectively, on the changes in the fair value, which is included in interest expense in the consolidated statements of operations.

The Company has agreements with each of its derivative counterparties that contain a provision where if the Company defaults on certain of its indebtedness, then the Company could also be declared in default on its derivative obligations. As of December 31, 2020, the fair value of derivatives in a net liability position, including accrued interest but excluding any adjustment for nonperformance risk related to these agreements, was $62.5 million. As of December 31, 2020, the Company has not posted any collateral related to these agreements and was not in breach of any agreement provisions. If the Company had breached any of these provisions, it could have been required to settle its obligations under the agreements at their aggregate termination value of $63.6 million at December 31, 2020.

Gains and losses on terminated hedges are included in accumulated other comprehensive income (loss), and are recognized into earnings over the term of the related mortgage obligation. Over time, the realized and unrealized gains and losses held in accumulated other comprehensive loss will be reclassified into earnings as an adjustment to interest expense in the same periods in which the hedged interest payments affect earnings. We estimate that $17.0 million of the current balance held in accumulated other comprehensive loss will be reclassified into interest expense and $6.2 million of the portion related to our share of joint venture accumulated other comprehensive loss will be reclassified into equity in net (loss) income from unconsolidated joint ventures within the next 12 months.

The following table presents the effect of our derivative financial instruments and our share of our joint ventures' derivative financial instruments that are designated and qualify as hedging instruments on the consolidated statements of operations for the years ended December 31, 2020, 2019, and 2018, respectively (in thousands):



## SL Green Realty Corp. and SL Green Operating Partnership, L.P.
Notes to Consolidated Financial Statements (cont.)
December 31, 2020

<table><tr><td rowspan="2"></td><td colspan="3">Amount of Loss
Recognized in
Other Comprehensive Loss</td><td rowspan="2">Location of (Loss) Gain
Reclassified from
Accumulated Other
Comprehensive Loss into
Income</td><td colspan="3">Amount of (Loss) Gain
Reclassified from
Accumulated Other
Comprehensive Loss into Income</td></tr><tr><td colspan="3">Year Ended
December 31,</td><td colspan="3">Year Ended
December 31,</td></tr><tr><td>Derivative</td><td>2020</td><td>2019</td><td>2018</td><td>Income</td><td>2020</td><td>2019</td><td>2018</td></tr><tr><td rowspan="2">Interest Rate Swaps/Caps
Share of unconsolidated
joint ventures&#x27; derivative
instruments</td><td>$ (51,244)</td><td>$ (33,907)</td><td>$ (2,284)</td><td>Interest expense</td><td>$ (14,569)</td><td>$ (261)</td><td>$ 1,168</td></tr><tr><td>(7,977)</td><td>(10,322)</td><td>(1,788)</td><td>Equity in net (loss) income
from unconsolidated joint
ventures</td><td>(4,911)</td><td>256</td><td>1,097</td></tr><tr><td></td><td>$ (59,221)</td><td>$ (44,229)</td><td>$ (4,072)</td><td></td><td>$ (19,480)</td><td>$ (5)</td><td>$ 2,265</td></tr></table>

## 18. Lease Income

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

Future minimum rents to be received over the next five years and thereafter for operating leases in effect at December 31, 2020 are as follows (in thousands):

<table><tr><td>2021</td><td>$ 631,775</td></tr><tr><td>2022</td><td>598,226</td></tr><tr><td>2023</td><td>546,803</td></tr><tr><td>2024</td><td>511,087</td></tr><tr><td>2025</td><td>465,398</td></tr><tr><td>Thereafter</td><td>2,658,793</td></tr><tr><td></td><td>5,412,082</td></tr></table>

The components of lease income from operating leases during the years ended December 31, 2020 and 2019 were as follows (in thousands):

<table><tr><td rowspan="2"></td><td colspan="2">Twelve Months Ended December 31,</td></tr><tr><td>2020</td><td>2019</td></tr><tr><td>Fixed lease payments</td><td>$ 702,482</td><td>$ 858,587</td></tr><tr><td>Variable lease payments</td><td>96,040</td><td>120,496</td></tr><tr><td>Total lease payments</td><td>$ 798,522</td><td>$ 979,083</td></tr><tr><td>Amortization of acquired above and below-market leases</td><td>5,901</td><td>4,474</td></tr><tr><td>Total rental revenue</td><td>$ 804,423</td><td>$ 983,557</td></tr></table>

The table below summarizes our investment in sales-type leases as of December 31, 2020:

<table><tr><td>Property</td><td>Year of Current Expiration</td><td>Year of Final Expiration \( ^{(1)} \)</td></tr><tr><td>712 Madison Avenue \( ^{(2)} \)</td><td>2021</td><td>2021</td></tr><tr><td>110 East 42nd Street Garage \( ^{(3)} \)</td><td>2069</td><td>2069</td></tr><tr><td>15 Beekman \( ^{(4)} \)</td><td>2089</td><td>2089</td></tr></table>

(1) Reflects exercise of all available renewal options.

(2) In January 2021, the Company closed on the sale of 712 Madison Avenue for a gross sales price of $43.0 million, pursuant to the exercise of a purchase option by the ground lessee of the property.

(3) In December 2020, the Company entered into a lease with its One Vanderbilt joint venture for use of the garage at 110 East 42nd Street.



# SL Green Realty Corp. and SL Green Operating Partnership, L.P.
Notes to Consolidated Financial Statements (cont.)
December 31, 2020

(4) In August 2020, the Company formed a joint venture, which then entered into a long-term sublease with the Company for the building at 15 Beekman. See Note 6, "Investments in Unconsolidated Joint Ventures."

Future minimum lease payments to be received over the next five years and thereafter for our sales-type leases with initial terms in excess of one year as of December 31, 2020 are as follows (in thousands):

<table><tr><td rowspan="2">2021</td><td>Sales-type leases</td></tr><tr><td>$ 46,326</td></tr><tr><td>2022</td><td>3,375</td></tr><tr><td>2023</td><td>3,424</td></tr><tr><td>2024</td><td>3,474</td></tr><tr><td>2025</td><td>3,525</td></tr><tr><td>Thereafter</td><td>223,199</td></tr><tr><td>Total minimum lease payments</td><td>$ 283,323</td></tr><tr><td>Amount representing interest</td><td>(133,924)</td></tr><tr><td>Investment in sales-type leases  \( {}^{(1)} \)</td><td>$ 149,399</td></tr></table>

(1) This amount is included in other assets in our consolidated balance sheets.

The components of lease income from sales-type leases during the years ended December 31, 2020 and 2019 were as follows (in thousands):

<table><tr><td rowspan="2"></td><td colspan="2">Twelve Months Ended December 31,</td></tr><tr><td>2020</td><td>2019</td></tr><tr><td>Loss recognized at commencement, net  \( {}^{(1)} \)</td><td>$ (6,237) \)</td><td>—</td></tr><tr><td>Interest income  \( {}^{(2)} \)</td><td>$ 1,817 \)</td><td>—</td></tr></table>

(1) These amounts are included in gain on sale of real estate, net and depreciable real estate reserves and impairments in our consolidated statements of operations.

(2) These amounts are included in other income in our consolidated statements of operations.

## 19. Benefit Plans

The building employees are covered by multi-employer defined benefit pension plans and post-retirement health and welfare plans. We participate in the Building Service 32BJ, or Union, Pension Plan and Health Plan. The Pension Plan is a multi-employer, non-contributory defined benefit pension plan that was established under the terms of collective bargaining agreements between the Service Employees International Union, Local 32BJ, the Realty Advisory Board on Labor Relations, Inc. and certain other employees. This Pension Plan is administered by a joint board of trustees consisting of union trustees and employer trustees and operates under employer identification number 13-1879376. The Pension Plan year runs from July 1 to June 30. Employers contribute to the Pension Plan at a fixed rate on behalf of each covered employee. Separate actuarial information regarding such pension plans is not made available to the contributing employers by the union administrators or trustees, since the plans do not maintain separate records for each reporting unit. However, on September 28, 2018, September 28, 2019, and September 27, 2020, the actuary certified that for the plan years beginning July 1, 2018, July 1, 2019, and July 1, 2020, the Pension Plan was in critical status under the Pension Protection Act of 2006. The Pension Plan trustees adopted a rehabilitation plan consistent with this requirement. No surcharges have been paid to the Pension Plan as of December 31, 2020. For the Pension Plan years ended June 30, 2020, 2019, and 2018, the plan received contributions from employers totaling $291.3 million, $290.1 million, and $272.3 million. Our contributions to the Pension Plan represent less than 5.0% of total contributions to the plan.

The Health Plan was established under the terms of collective bargaining agreements between the Union, the Realty Advisory Board on Labor Relations, Inc. and certain other employers. The Health Plan provides health and other benefits to eligible participants employed in the building service industry who are covered under collective bargaining agreements, or other written agreements, with the Union. The Health Plan is administered by a Board of Trustees with equal representation by the employers and the Union and operates under employer identification number 13-2928869. The Health Plan receives contributions in accordance with collective bargaining agreements or participation agreements. Generally, these agreements provide that the employers contribute to the Health Plan at a fixed rate on behalf of each covered employee. For the Health Plan



# SL Green Realty Corp. and SL Green Operating Partnership, L.P.
Notes to Consolidated Financial Statements (cont.)
December 31, 2020

years ended, June 30, 2020, 2019, and 2018, the plan received contributions from employers totaling $1.6 billion, $1.5 billion and $1.4 billion, respectively. Our contributions to the Health Plan represent less than 5.0% of total contributions to the plan.

Contributions we made to the multi-employer plans for the years ended December 31, 2020, 2019 and 2018 are included in the table below (in thousands):

<table><tr><td>Benefit Plan</td><td>2020</td><td>2019</td><td>2018</td></tr><tr><td>Pension Plan</td><td>2,480</td><td>3,103</td><td>3,017</td></tr><tr><td>Health Plan</td><td>7,688</td><td>9,949</td><td>9,310</td></tr><tr><td>Other plans</td><td>929</td><td>1,108</td><td>1,106</td></tr><tr><td>Total plan contributions</td><td>11,097</td><td>14,160</td><td>13,433</td></tr></table>

## 401(K) Plan

In August 1997, we implemented a 401(K) Savings/Retirement Plan, or the 401(K) Plan, to cover eligible employees of ours, and any designated affiliate. The 401(K) Plan permits eligible employees to defer up to 15% of their annual compensation, subject to certain limitations imposed by the Code. The employees' elective deferrals are immediately vested and non-forfeitable upon contribution to the 401(K) Plan. During 2003, we amended our 401(K) Plan to provide for discretionary matching contributions only. For 2020, 2019 and 2018, a matching contribution equal to 100% of the first 4% of annual compensation was made. For the years ended December 31, 2020, December 31, 2019, and December 31, 2018 we made matching contributions of $1.7 million, $1.6 million, and $1.1 million, respectively.



# SL Green Realty Corp. and SL Green Operating Partnership, L.P.
Notes to Consolidated Financial Statements (cont.)
December 31, 2020

## 20. Commitments and Contingencies

## Legal Proceedings

As of December 31, 2020, the Company and the Operating Partnership were not involved in any material litigation nor, to management's knowledge, was any material litigation threatened against us or our portfolio which if adversely determined could have a material adverse impact on us.

## Environmental Matters

Our management believes that the properties are in compliance in all material respects with applicable Federal, state and local ordinances and regulations regarding environmental issues. Management is not aware of any environmental liability that it believes would have a materially adverse impact on our financial position, results of operations or cash flows. Management is unaware of any instances in which it would incur significant environmental cost if any of our properties were sold.

## Employment Agreements

We have entered into employment agreements with certain executives, which expire between December 2021 and December 2022. The minimum cash-based compensation, including base salary and guaranteed bonus payments, associated with these employment agreements total $3.4 million for 2021.

## Insurance

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

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

Belmont had loss reserves of $2.9 million and $3.3 million as of December 31, 2020 and 2019, respectively. Ticonderoga had no loss reserves as of December 31, 2020.

## Ground Lease Arrangements

We are a tenant under ground leases for certain properties. These leases have expirations from 2022 to 2119, or 2043 to 2119 as fully extended. Certain leases offer extension options which we assess against relevant economic factors to determine whether we are reasonably certain of exercising or not exercising the option. Lease payments associated with renewal periods that we are reasonably certain will be exercised, if any, are included in the measurement of the corresponding lease liability and right of use asset.

Certain of our ground leases are subject to rent resets, generally based on a percentage of the then fair market value, a fixed amount, or a percentage of the preceding rent at specified future dates. Rent resets will be recognized in the periods in which they are incurred.

The table below summarizes our current ground lease arrangements as of December 31, 2020:



# SL Green Realty Corp. and SL Green Operating Partnership, L.P.
Notes to Consolidated Financial Statements (cont.)
December 31, 2020

<table><tr><td>Property (1)</td><td>Year of Current Expiration</td><td>Year of Final Expiration (2)</td></tr><tr><td>1185 Avenue of the Americas</td><td>2043</td><td>2043</td></tr><tr><td>625 Madison Avenue</td><td>2022</td><td>2054</td></tr><tr><td>420 Lexington Avenue</td><td>2050</td><td>2080</td></tr><tr><td>711 Third Avenue (3)</td><td>2033</td><td>2083</td></tr><tr><td>461 Fifth Avenue (4)</td><td>2027</td><td>2084</td></tr><tr><td>1080 Amsterdam Avenue (5)</td><td>2111</td><td>2111</td></tr><tr><td>15 Beekman (4)(6)</td><td>2119</td><td>2119</td></tr></table>

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

(2) Reflects exercise of all available renewal options.

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

(4) The Company has an option to purchase the ground lease for a fixed price on a specific date. The lease is classified as a financing lease.

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

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

The following is a schedule of future minimum lease payments as evaluated in accordance with ASC 842 for our financing leases and operating leases with initial terms in excess of one year as of December 31, 2020 (in thousands):

<table><tr><td></td><td>Financing leases</td><td>Operating leases (1)</td></tr><tr><td>2021</td><td>$ 32,527</td><td>$ 28,534</td></tr><tr><td>2022</td><td>3,523</td><td>26,228</td></tr><tr><td>2023</td><td>3,570</td><td>23,921</td></tr><tr><td>2024</td><td>3,641</td><td>23,939</td></tr><tr><td>2025</td><td>3,810</td><td>24,026</td></tr><tr><td>Thereafter</td><td>260,550</td><td>504,360</td></tr><tr><td>Total minimum lease payments</td><td>$ 307,621</td><td>$ 631,008</td></tr><tr><td>Amount representing interest</td><td>(155,100)</td><td></td></tr><tr><td>Amount discounted using incremental borrowing rate</td><td></td><td>(291,550)</td></tr><tr><td>Lease liabilities</td><td>$ 152,521</td><td>$ 339,458</td></tr></table>

(1) As of December 31, 2020, the total future minimum payments to be received under non-cancelable subleases is $1.7 billion.



# SL Green Realty Corp. and SL Green Operating Partnership, L.P.
Notes to Consolidated Financial Statements (cont.)
December 31, 2020

The following table provides lease cost information for the Company's operating leases for the twelve months ended December 31, 2020 and 2019 (in thousands):

<table><tr><td rowspan="2"></td><td colspan="3">Twelve Months Ended December 31,</td></tr><tr><td>2020</td><td colspan="2">2019</td></tr><tr><td>Operating Lease Costs</td><td>$ 32,169</td><td>$ 33,235</td><td></td></tr><tr><td>Operating lease costs capitalized</td><td>(3,127)</td><td>(47)</td><td></td></tr><tr><td>Operating lease costs, net (1)</td><td>$ 29,043</td><td>$ 33,188</td><td></td></tr></table>

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

The following table provides lease cost information for the Company's financing leases for the twelve months ended December 31, 2020 and 2019 (in thousands):

<table><tr><td rowspan="2"></td><td colspan="2">Twelve Months Ended December 31,</td></tr><tr><td>2020</td><td>2019</td></tr><tr><td>Financing Lease Costs</td><td></td><td></td></tr><tr><td>Interest on financing leases before capitalized interest</td><td>$ 8,091</td><td>$ 3,243</td></tr><tr><td>Interest on financing leases capitalized</td><td>(2,378)</td><td>—</td></tr><tr><td>Interest on financing leases, net (1)</td><td>5,713</td><td>3,243</td></tr><tr><td>Amortization of right-of-use assets (2)</td><td>1,200</td><td>1,219</td></tr><tr><td>Financing lease costs, net</td><td>$ 6,913</td><td>$ 4,462</td></tr></table>

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

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

As of December 31, 2020, the weighted-average discount rate used to calculate the lease liabilities was 4.71%. As of December 31, 2020, the weighted-average remaining lease term was 27 years, inclusive of purchase options expected to be exercised.



# SL Green Realty Corp. and SL Green Operating Partnership, L.P.
Notes to Consolidated Financial Statements (cont.)
December 31, 2020

## 21. Segment Information

The Company has two reportable segments, real estate and debt and preferred equity investments. We evaluate real estate performance and allocate resources based on earnings contributions.

The primary sources of revenue are generated from tenant rents and escalations and reimbursement revenue. Real estate property operating expenses consist primarily of security, maintenance, utility costs, insurance, real estate taxes and ground rent expense (at certain applicable properties). See Note 5, "Debt and Preferred Equity Investments," for additional details on our debt and preferred equity investments.

Selected consolidated results of operations for the years ended December 31, 2020, 2019, and 2018, and selected asset information as of December 31, 2020 and 2019, regarding our operating segments are as follows (in thousands):

<table><tr><td></td><td>Real Estate Segment</td><td>Debt and Preferred Equity Segment</td><td>Total Company</td></tr><tr><td>Total revenues</td><td></td><td></td><td></td></tr><tr><td>Years ended:</td><td></td><td></td><td></td></tr><tr><td>December 31, 2020</td><td>$ 932,581</td><td>$ 120,163</td><td>$ 1,052,744</td></tr><tr><td>December 31, 2019</td><td>1,043,405</td><td>195,590</td><td>1,238,995</td></tr><tr><td>December 31, 2018</td><td>1,025,900</td><td>201,492</td><td>1,227,392</td></tr><tr><td>Net Income</td><td></td><td></td><td></td></tr><tr><td>Years ended:</td><td></td><td></td><td></td></tr><tr><td>December 31, 2020</td><td>$ 354,353</td><td>$ 60,405</td><td>$ 414,758</td></tr><tr><td>December 31, 2019</td><td>158,972</td><td>132,515</td><td>291,487</td></tr><tr><td>December 31, 2018</td><td>129,253</td><td>141,603</td><td>270,856</td></tr><tr><td>Total assets</td><td></td><td></td><td></td></tr><tr><td>As of:</td><td></td><td></td><td></td></tr><tr><td>December 31, 2020</td><td>$ 10,579,899</td><td>$ 1,127,668</td><td>$ 11,707,567</td></tr><tr><td>December 31, 2019</td><td>11,063,155</td><td>1,703,165</td><td>12,766,320</td></tr></table>

Interest costs for the debt and preferred equity segment include actual costs incurred for borrowings on the 2017 MRA and the FHLB Facility. Interest is imputed on the investments that do not collateralize the 2017 MRA and the FHLB Facility using our weighted average corporate borrowing cost. We also allocate loan loss reserves, net of recoveries, and transaction related costs to the debt and preferred equity segment. We do not allocate marketing, general and administrative expenses to the debt and preferred equity segment because the use of personnel and resources is dependent on transaction volume between the two segments and varies period over period. In addition, we base performance on the individual segments prior to allocating marketing, general and administrative expenses. For the years ended, December 31, 2020, 2019, and 2018 marketing, general and administrative expenses totaled $91.8 million, $100.9 million, and $92.6 million respectively. All other expenses, except interest, relate entirely to the real estate assets.

There were no transactions between the above two segments.



# SL Green Realty Corp. and SL Green Operating Partnership, L.P.
Schedule III - Real Estate and Accumulated Depreciation
December 31, 2020
(in thousands)

<table><tr><td>Column A</td><td>Column B</td><td>Column C Initial Cost</td><td>Column D Cost Capitalized Subsequent To Acquisition (1)</td><td colspan="4">Column E Gross Amount at Which Carried at Close of Period</td><td>Column F</td><td>Column G</td><td>Column H</td><td>Column I</td></tr><tr><td>Description (2)</td><td>Encumbrances</td><td>Land</td><td>Building &amp; Improvements</td><td>Land</td><td>Building &amp; Improvements</td><td>Land</td><td>Building &amp; Improwments (3)</td><td>Total</td><td>Accumulated Depreciation</td><td>Date of Construction</td><td>Date Acquired</td><td>Life on Which Depreciation is Computed</td></tr><tr><td>420 Lexington Ave</td><td>$ 294,035</td><td>$ —</td><td>$ 333,499</td><td>$ —</td><td>$ 201,776</td><td>$ —</td><td>$ 535,275</td><td>$ 535,275</td><td>$ 166,886</td><td>1927</td><td>3/1998</td><td>Various</td></tr><tr><td>711 Third Avenue</td><td>—</td><td>19,844</td><td>115,769</td><td>—</td><td>69,098</td><td>19,844</td><td>184,867</td><td>204,711</td><td>61,237</td><td>1955</td><td>5/1998</td><td>Various</td></tr><tr><td>555 W. 57th Street</td><td>—</td><td>18,846</td><td>140,946</td><td>—</td><td>1,600</td><td>18,846</td><td>142,546</td><td>161,392</td><td>81,420</td><td>1971</td><td>1/1999</td><td>Various</td></tr><tr><td>220 East 42nd Street</td><td>510,000</td><td>51,008</td><td>203,727</td><td>—</td><td>183,461</td><td>51,008</td><td>387,188</td><td>438,196</td><td>137,153</td><td>1929</td><td>2/2003</td><td>Various</td></tr><tr><td>461 Fifth Avenue</td><td>—</td><td>—</td><td>88,276</td><td>—</td><td>35,988</td><td>—</td><td>124,264</td><td>124,264</td><td>36,758</td><td>1988</td><td>10/2003</td><td>Various</td></tr><tr><td>750 Third Avenue</td><td>—</td><td>51,093</td><td>251,523</td><td>—</td><td>(2,288)</td><td>51,093</td><td>249,235</td><td>300,328</td><td>109,824</td><td>1958</td><td>7/2004</td><td>Various</td></tr><tr><td>625 Madison Avenue</td><td>—</td><td>—</td><td>291,319</td><td>—</td><td>37,997</td><td>—</td><td>329,316</td><td>329,316</td><td>139,403</td><td>1956</td><td>10/2004</td><td>Various</td></tr><tr><td>485 Lexington Avenue</td><td>450,000</td><td>78,282</td><td>452,631</td><td>—</td><td>(22,346)</td><td>78,282</td><td>430,285</td><td>508,567</td><td>173,769</td><td>1956</td><td>12/2004</td><td>Various</td></tr><tr><td>609 Fifth Avenue (4)</td><td>57,651</td><td>16,869</td><td>107,185</td><td>—</td><td>53,002</td><td>16,869</td><td>160,187</td><td>177,056</td><td>19,881</td><td>1925</td><td>6/2006</td><td>Various</td></tr><tr><td>810 Seventh Avenue</td><td>—</td><td>114,077</td><td>550,819</td><td>—</td><td>3,390</td><td>114,077</td><td>554,209</td><td>668,286</td><td>205,774</td><td>1970</td><td>1/2007</td><td>Various</td></tr><tr><td>1185 Avenue of the Americas</td><td>—</td><td>—</td><td>791,106</td><td>—</td><td>123,470</td><td>—</td><td>914,576</td><td>914,576</td><td>320,735</td><td>1969</td><td>1/2007</td><td>Various</td></tr><tr><td>1350 Avenue of the Americas</td><td>—</td><td>90,941</td><td>431,517</td><td>—</td><td>(2,431)</td><td>90,941</td><td>429,086</td><td>520,027</td><td>155,186</td><td>1966</td><td>1/2007</td><td>Various</td></tr><tr><td>1-6 Landmark Square (5)</td><td>100,000</td><td>27,852</td><td>161,343</td><td>(6,939)</td><td>(40,256)</td><td>20,913</td><td>121,087</td><td>142,000</td><td>32,099</td><td>1973-1984</td><td>1/2007</td><td>Various</td></tr><tr><td>7 Landmark Square (5)</td><td>—</td><td>1,721</td><td>8,417</td><td>(1,338)</td><td>(6,240)</td><td>383</td><td>2,177</td><td>2,560</td><td>426</td><td>2007</td><td>1/2007</td><td>Various</td></tr><tr><td>100 Church Street</td><td>204,875</td><td>34,994</td><td>183,932</td><td>—</td><td>11,391</td><td>34,994</td><td>195,323</td><td>230,317</td><td>65,763</td><td>1959</td><td>1/2010</td><td>Various</td></tr><tr><td>125 Park Avenue</td><td>—</td><td>120,900</td><td>270,598</td><td>—</td><td>12,499</td><td>120,900</td><td>283,097</td><td>403,997</td><td>99,736</td><td>1923</td><td>10/2010</td><td>Various</td></tr><tr><td>110 East 42nd Street (6)</td><td>—</td><td>36,196</td><td>78,353</td><td>(2,334)</td><td>1,068</td><td>33,862</td><td>79,421</td><td>113,283</td><td>24,330</td><td>1921</td><td>5/2011</td><td>Various</td></tr><tr><td>304 Park Avenue</td><td>—</td><td>54,489</td><td>90,643</td><td>—</td><td>1,484</td><td>54,489</td><td>92,127</td><td>146,616</td><td>23,428</td><td>1930</td><td>6/2012</td><td>Various</td></tr><tr><td>635 Sixth Avenue</td><td>—</td><td>24,343</td><td>88,261</td><td>—</td><td>95</td><td>24,343</td><td>88,356</td><td>112,699</td><td>17,412</td><td>1902</td><td>9/2012</td><td>Various</td></tr><tr><td>641 Sixth Avenue</td><td>—</td><td>45,976</td><td>77,076</td><td>—</td><td>355</td><td>45,976</td><td>77,431</td><td>123,407</td><td>21,231</td><td>1902</td><td>9/2012</td><td>Various</td></tr><tr><td>1080 Amsterdam (7)</td><td>34,773</td><td>—</td><td>47,948</td><td>—</td><td>10,327</td><td>—</td><td>58,275</td><td>58,275</td><td>7,937</td><td>1932</td><td>10/2012</td><td>Various</td></tr><tr><td>760 Madison Avenue (8)</td><td>—</td><td>284,286</td><td>8,314</td><td>6,153</td><td>29,133</td><td>290,439</td><td>37,447</td><td>327,886</td><td>5,392</td><td>1996/2012</td><td>7/2014</td><td>Various</td></tr><tr><td>719 Seventh Avenue (9)</td><td>50,000</td><td>41,180</td><td>46,232</td><td>—</td><td>(4,750)</td><td>41,180</td><td>41,482</td><td>82,662</td><td>2,323</td><td>1927</td><td>7/2014</td><td>Various</td></tr><tr><td>110 Greene Street</td><td>—</td><td>45,120</td><td>228,393</td><td>—</td><td>3,034</td><td>45,120</td><td>231,427</td><td>276,547</td><td>36,767</td><td>1910</td><td>7/2015</td><td>Various</td></tr><tr><td>185 Broadway (10)</td><td>158,478</td><td>45,540</td><td>27,865</td><td>—</td><td>111,462</td><td>45,540</td><td>139,327</td><td>184,867</td><td>419</td><td>1921</td><td>8/2015</td><td>Various</td></tr><tr><td>133 Greene Street (11)</td><td>15,523</td><td>3,446</td><td>27,542</td><td>(1,563)</td><td>(12,377)</td><td>1,883</td><td>15,165</td><td>17,048</td><td>1,526</td><td>1900</td><td>10/2018</td><td>Various</td></tr><tr><td>712 Madison Avenue (12)</td><td>28,000</td><td>7,207</td><td>47,397</td><td>(7,207)</td><td>(47,397)</td><td>—</td><td>—</td><td>—</td><td>—</td><td>1900/1980</td><td>12/2018</td><td>Various</td></tr><tr><td>106 Spring Street</td><td>38,025</td><td>14,173</td><td>66,052</td><td>(6,979)</td><td>(32,335)</td><td>7,194</td><td>33,717</td><td>40,911</td><td>2,911</td><td>1900</td><td>4/2019</td><td>Various</td></tr><tr><td>707 Eleventh Avenue</td><td>—</td><td>66,237</td><td>20,874</td><td>—</td><td>10,442</td><td>66,237</td><td>31,316</td><td>97,553</td><td>—</td><td>1901</td><td>1/2020</td><td>Various</td></tr><tr><td>590 Fifth Avenue</td><td>—</td><td>39,685</td><td>51,380</td><td>—</td><td>3,193</td><td>39,685</td><td>54,573</td><td>94,258</td><td>657</td><td>1987</td><td>10/2020</td><td>Various</td></tr><tr><td>Other (13)</td><td>—</td><td>1,734</td><td>16,224</td><td>—</td><td>241</td><td>1,734</td><td>16,465</td><td>18,199</td><td>5,694</td><td></td><td></td><td></td></tr><tr><td>Total</td><td>$ 1,941,360</td><td>$1,336,041</td><td>$ 5,305,161</td><td>$ (20,207)</td><td>$ 734,086</td><td>$1,315,832</td><td>$ 6,039,247</td><td>$ 7,355,079</td><td>$ 1,956,077</td><td></td><td></td><td></td></tr></table>

(1) Includes depreciable real estate reserves and impairments recorded subsequent to acquisition.

(2) All properties located in New York, New York unless otherwise noted.

(3) Includes right of use lease assets.

(4) In 2020, we sold the retail condominium at this property. The amounts presented here relate to the office condominium, which we retained.

(5) Property located in Connecticut.

(6) In December 2020, the Company entered into a lease with its One Vanderbilt joint venture for use of the garage at 110 East 42nd Street. This lease is accounted for as a sales-type lease.

(7) We own a 92.5% interest in this property.

(8) Includes amounts attributable to the property at 762 Madison Avenue, which is part of this development project.

(9) We own a 75.0% interest in this property.

(10) Properties at 5-7 Dey Street, 183 Broadway, and 185 Broadway were demolished in preparation of the development site for the 185 Broadway project.

(11) In February 2021, this debt was extinguished after the lender was the winning bidder in a foreclosure auction for the property.

(12) In 2020, the lease to the ground lessee of the property was reclassified as a sales-type lease. In January 2021, the Company closed on the sale of the property pursuant to the exercise of a purchase option by the ground lessee.

(13) Other includes tenant improvements of eEmerge, capitalized interest and corporate improvements.



# SL Green Realty Corp. and SL Green Operating Partnership, L.P.
Schedule III - Real Estate and Accumulated Depreciation
December 31, 2020
(in thousands)

The changes in real estate for the years ended December 31, 2020, 2019 and 2018 are as follows (in thousands):

<table><tr><td></td><td>2020</td><td>2019</td><td>2018</td></tr><tr><td>Balance at beginning of year</td><td>$ 8,784,567</td><td>$ 8,513,935</td><td>$ 10,206,122</td></tr><tr><td>Property acquisitions</td><td>178,635</td><td>—</td><td>52,939</td></tr><tr><td>Improvements</td><td>481,327</td><td>251,674</td><td>267,726</td></tr><tr><td>Retirements/disposals/deconsolidation</td><td>(2,089,450)</td><td>18,958</td><td>(2,012,852)</td></tr><tr><td>Balance at end of year</td><td>$ 7,355,079</td><td>$ 8,784,567</td><td>$ 8,513,935</td></tr></table>

The aggregate cost of land, buildings and improvements, before depreciation, for Federal income tax purposes at December 31, 2020 was $9.7 billion (unaudited).

The changes in accumulated depreciation, exclusive of amounts relating to equipment, autos, and furniture and fixtures, for the years ended December 31, 2020, 2019 and 2018 are as follows (in thousands):

<table><tr><td></td><td>2020</td><td>2019</td><td>2018</td></tr><tr><td>Balance at beginning of year</td><td>$ 2,060,560</td><td>$ 2,099,137</td><td>$ 2,300,116</td></tr><tr><td>Depreciation for year</td><td>270,843</td><td>222,867</td><td>245,033</td></tr><tr><td>Retirements/disposals/deconsolidation</td><td>(375,326)</td><td>(261,444)</td><td>(446,012)</td></tr><tr><td>Balance at end of year</td><td>$ 1,956,077</td><td>$ 2,060,560</td><td>$ 2,099,137</td></tr></table>



# Report of Independent Registered Public Accounting Firm

To the Shareholders and the Board of Directors of SL Green Realty Corp.

## Opinion on the Financial Statements

We have audited the accompanying consolidated balance sheets of SL Green Realty Corp. (the Company) as of December 31, 2020 and 2019, the related consolidated statements of operations, comprehensive income, equity and cash flows for each of the three years in the period ended December 31, 2020, and the related notes and financial statement schedule listed in the Index at Item 15(a)(2) (collectively referred to as the "consolidated financial statements"). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company at December 31, 2020 and 2019, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2020, in conformity with U.S. generally accepted accounting principles.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company's internal control over financial reporting as of December 31, 2020, based on criteria established in Internal Control-Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework), and our report dated February 26, 2021 expressed an unqualified opinion thereon.

## Adoption of ASU No. 2016-02

As discussed in Note 2 to the consolidated financial statements, the Company changed its method of accounting for leases in 2019 due to the adoption of ASU No. 2016-02, Leases (Topic 842), and the related amendments.

## Adoption of ASU No. 2016-13

As discussed in Note 2 to the consolidated financial statements, the Company changed its method of accounting for the measurement of credit losses on financial instruments in 2020 due to the adoption of ASU No. 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, and the related amendments.

## Basis for Opinion

These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

## Critical Audit Matters

The critical audit matters communicated below are matters arising from the current period audit of the financial statements that were communicated or required to be communicated to the audit committee and that: (1) relate to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective or complex judgments. The communication of the critical audit matters does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matters below, providing a separate opinion on the critical audit matters or on the accounts or disclosures to which they relate.



## Joint Venture Consolidation Assessment

The Company accounted for certain investments in real estate joint ventures under the equity method of accounting and consolidated certain other investments in real estate joint ventures. At December 31, 2020, the Company’s investments in unconsolidated joint ventures was $3.8 billion and noncontrolling interests in consolidated other partnerships was $26 million. As discussed in Note 2 to the consolidated financial statements, for each joint venture, the Company evaluated the rights provided to each party in the venture to assess the consolidation of the venture.

Auditing management’s joint venture consolidation analyses was complex and highly judgmental due to the subjectivity in assessing which activities most significantly impact a joint venture’s economic performance based on the purpose and design of the entity over the duration of its expected life and assessing which party has rights to direct those activities. We tested the Company’s controls over the assessment of joint venture consolidation. For example, we tested controls over management’s review of the consolidation analyses for newly formed ventures as well as controls over management’s identification of reconsideration events which could trigger modified consolidation conclusions for existing ventures.

To test the Company’s consolidation assessment for real estate joint ventures, our procedures included, among others, reviewing new and amended joint venture agreements and discussing with management the nature of the rights conveyed to the Company through the joint venture agreements as well as the business purpose of the joint venture transactions. We reviewed management’s assessment of the activities that would most significantly impact the joint venture’s economic performance and evaluated whether the joint venture agreements provided participating or protective rights to the Company. We also evaluated transactions with the joint ventures for events which would require a reconsideration of previous consolidation conclusions.

## Impairment of Commercial Real Estate Properties (Retail)

At December 31, 2020, the Company’s commercial real estate properties, at cost totaled approximately $5.4 billion. As described in Note 2 to the consolidated financial statements, real estate properties are periodically reviewed for impairment when circumstances indicate that the carrying value of a property may not be recoverable. For the year ended December 31, 2020, the Company recognized $60.5 million of depreciable real estate reserves and impairments.

Auditing the Company’s accounting for impairment of commercial real estate properties (retail) was especially challenging and involved a high degree of subjectivity as a result of the assumptions and estimates inherent in the determination of estimated future cash flows expected to result from the property’s use and eventual disposition and the estimated fair value of the property. In particular, management’s assumptions and estimates included estimated revenue and expense growth rates, discount rates and capitalization rates, which were sensitive to expectations about future operations, market or economic conditions, demand and competition.

We obtained an understanding, evaluated the design, and tested the operating effectiveness of controls over the Company’s commercial real estate properties impairment process. This included testing of controls over management’s review of the significant assumptions and data inputs utilized in the estimation of expected future cash flows and the determination of fair value.

To test the Company's accounting for impairment of commercial real estate properties, we performed audit procedures that included, among others, evaluating the methodologies applied and testing the significant assumptions discussed above and the underlying data used by the Company in its impairment analyses. We held discussions with management about the current status of potential transactions and about management's judgments to understand the probability of future events that could affect the holding period and other cash flow assumptions for the properties. In certain cases, we involved our valuation specialists to assist in performing these procedures. We compared the significant assumptions used by management to historical data and observable market-specific data. We also assessed management's estimates and performed sensitivity analyses of significant assumptions to evaluate the changes in estimated future cash flows that would result from changes in the assumptions. In addition, we assessed information and events subsequent to the balance sheet date to corroborate certain of the key assumptions utilized by management.



We have served as the Company’s auditor since 1997.

New York, New York

February 26, 2021



# Report of Independent Registered Public Accounting Firm

To the Shareholders and the Board of Directors of SL Green Realty Corp.

## Opinion on Internal Control Over Financial Reporting

We have audited SL Green Realty Corp.'s internal control over financial reporting as of December 31, 2020, based on criteria established in Internal Control-Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework) (the COSO criteria). In our opinion, SL Green Realty Corp. (the Company) maintained, in all material respects, effective internal control over financial reporting as of December 31, 2020, based on the COSO criteria.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States)(PCAOB), the 2020 consolidated financial statements of the Company and our report dated February 26, 2021 expressed an unqualified opinion thereon.

## Basis for Opinion

The Company's management is responsible for maintaining effective internal control over financial reporting, and for its assessment of the effectiveness of internal control over financial reporting included in the accompanying Management's Report on Internal Control over Financial Reporting. Our responsibility is to express an opinion on the Company's internal control over financial reporting based on our audit. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects.

Our audit included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, testing and evaluating the design and operating effectiveness of internal control based on the assessed risk, and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion.

## Definition and Limitations of Internal Control Over Financial Reporting

A company's internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company's internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company's assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

Emmat + Young LLP



# Report of Independent Registered Public Accounting Firm

To the Partners of SL Green Operating Partnership, L.P.

## Opinion on the Financial Statements

We have audited the accompanying consolidated balance sheets of SL Green Operating Partnership, L.P. (the Operating Partnership) as of December 31, 2020 and 2019, the related consolidated statements of operations, comprehensive income, capital and cash flows for each of the three years in the period ended December 31, 2020, and the related notes and financial statement schedule listed in the Index at Item 15(a)(2) (collectively referred to as the "consolidated financial statements"). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Operating Partnership at December 31, 2020 and 2019, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2020, in conformity with U.S. generally accepted accounting principles.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States)(PCAOB), the Operating Partnership's internal control over financial reporting as of December 31, 2020, based on criteria established in Internal Control-Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework), and our report dated February 26, 2021 expressed an unqualified opinion thereon.

## Adoption of ASU No. 2016-02

As discussed in Note 2 to the consolidated financial statements, the Operating Partnership changed its method of accounting for leases in 2019 due to the adoption of ASU No. 2016-02, Leases (Topic 842), and the related amendments.

## Adoption of ASU No. 2016-13

As discussed in Note 2 to the consolidated financial statements, the Operating Partnership changed its method of accounting for the measurement of credit losses on financial instruments in 2020 due to the adoption of ASU No. 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, and the related amendments.

## Basis for Opinion

These financial statements are the responsibility of the Operating Partnership's management. Our responsibility is to express an opinion on the Operating Partnership's financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Operating Partnership in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

## Critical Audit Matters

The critical audit matters communicated below are matters arising from the current period audit of the financial statements that were communicated or required to be communicated to the audit committee and that: (1) relate to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matters below, providing separate opinions on the critical audit matters or on the accounts or disclosures to which they relate.



## Joint Venture Consolidation Assessment

The Operating Partnership accounted for certain investments in real estate joint ventures under the equity method of accounting and consolidated certain other investments in real estate joint ventures. At December 31, 2020, the Operating Partnership’s investments in unconsolidated joint ventures was $3.8 billion and noncontrolling interests in consolidated other partnerships was $26 million. As discussed in Note 2 to the consolidated financial statements, for each joint venture, the Operating Partnership evaluated the rights provided to each party in the venture to assess the consolidation of the venture.

Auditing management’s joint venture consolidation analyses was complex and highly judgmental due to the subjectivity in assessing which activities most significantly impact a joint venture’s economic performance based on the purpose and design of the entity over the duration of its expected life and assessing which party has rights to direct those activities. We tested the Operating Partnership’s controls over the assessment of joint venture consolidation. For example, we tested controls over management’s review of the consolidation analyses for newly formed ventures as well as controls over management’s identification of reconsideration events which could trigger modified consolidation conclusions for existing ventures.

To test the Operating Partnership’s consolidation assessment for real estate joint ventures, our procedures included, among others, reviewing new and amended joint venture agreements and discussing with management the nature of the rights conveyed to the Operating Partnership through the joint venture agreements as well as the business purpose of the joint venture transactions. We reviewed management’s assessment of the activities that would most significantly impact the joint venture’s economic performance and evaluated whether the joint venture agreements provided participating or protective rights to the Operating Partnership. We also evaluated transactions with the joint ventures for events which would require a reconsideration of previous consolidation conclusions.

## Impairment of Commercial Real Estate Properties (Retail)

At December 31, 2020, the Operating Partnership’s commercial real estate properties, at cost totaled approximately $5.4 billion. As described in Note 2 to the consolidated financial statements, real estate properties are periodically reviewed for impairment when circumstances indicate that the carrying value of a property may not be recoverable. For the year ended December 31, 2020, the Operating Partnership recognized $60.5 million of depreciable real estate reserves and impairments.

Auditing the Operating Partnership’s accounting for impairment of commercial real estate properties (retail) was especially challenging and involved a high degree of subjectivity as a result of the assumptions and estimates inherent in the determination of estimated future cash flows expected to result from the property’s use and eventual disposition and the estimated fair value of the property. In particular, management’s assumptions and estimates included estimated revenue and expense growth rates, discount rates and capitalization rates, which were sensitive to expectations about future operations, market or economic conditions, demand and competition.

We obtained an understanding, evaluated the design, and tested the operating effectiveness of controls over the Operating Partnership’s commercial real estate properties impairment process. This included testing of controls over management’s review of the significant assumptions and data inputs utilized in the estimation of expected future cash flows and the determination of fair value.

To test the Operating Partnership's accounting for impairment of commercial real estate properties, we performed audit procedures that included, among others, evaluating the methodologies applied and testing the significant assumptions discussed above and the underlying data used by the Operating Partnership in its impairment analyses. We held discussions with management about the current status of potential transactions and about management's judgments to understand the probability of future events that could affect the holding period and other cash flow assumptions for the properties. In certain cases, we involved our valuation specialists to assist in performing these procedures. We compared the significant assumptions used by management to historical data and observable market-specific data. We also assessed management's estimates and performed sensitivity analyses of significant assumptions to evaluate the changes in estimated future cash flows that would result from changes in the assumptions. In addition, we assessed information and events subsequent to the balance sheet date to corroborate certain of the key assumptions utilized by management.



We have served as the Operating Partnership's auditor since 2010.

New York, New York

February 26, 2021



# Report of Independent Registered Public Accounting Firm

To the Partners of SL Green Operating Partnership, L.P.

## Opinion on Internal Control Over Financial Reporting

We have audited SL Green Operating Partnership L.P.'s internal control over financial reporting as of December 31, 2020, based on criteria established in Internal Control-Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework) (the COSO criteria). In our opinion, SL Green Operating Partnership, L.P. (the Operating Partnership) maintained, in all material respects, effective internal control over financial reporting as of December 31, 2020, based on the COSO criteria.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the 2020 consolidated financial statements of the Operating Partnership and our report dated February 26, 2021 expressed an unqualified opinion thereon.

## Basis for Opinion

The Operating Partnership's management is responsible for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting included in the accompanying Management's Report on Internal Control over Financial Reporting. Our responsibility is to express an opinion on the Operating Partnership's internal control over financial reporting based on our audit. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Operating Partnership in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects.

Our audit included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, testing and evaluating the design and operating effectiveness of internal control based on the assessed risk, and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion.

## Definition and Limitations of Internal Control Over Financial Reporting

A company's internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company's internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company's assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

Emmett Young LLP

New York, New York

February 26, 2021



## CONTROLS AND PROCEDURES

## SL GREEN REALTY CORP.

## Evaluation of Disclosure Controls and Procedures

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

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

## Management's Report on Internal Control over Financial Reporting

The Company is responsible for establishing and maintaining adequate internal control over financial reporting, as such term is defined in Exchange Act Rules 13a-15(f) and 15d-15(f). Under the supervision and with the participation of the Company's management, including our Chief Executive Officer and Chief Financial Officer, the Company conducted an evaluation of the effectiveness of our internal control over financial reporting as of December 31, 2020 based on the framework in Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 Framework) (COSO). Based on that evaluation, the Company concluded that its internal control over financial reporting was effective as of December 31, 2020.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree or compliance with the policies or procedures may deteriorate.

The effectiveness of the Company's internal control over financial reporting as of December 31, 2020 has been audited by Ernst & Young LLP, an independent registered public accounting firm, as stated in their report which appears herein.

## Changes in Internal Control over Financial Reporting

There have been no significant changes in the Company's internal control over financial reporting during the year ended December 31, 2020 that has materially affected, or is reasonably likely to materially affect, its internal control over financial reporting.

## SL GREEN OPERATING PARTNERSHIP, L.P.

## Evaluation of Disclosure Controls and Procedures

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



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

## Management’s Report on Internal Control over Financial Reporting

The Operating Partnership is responsible for establishing and maintaining adequate internal control over financial reporting, as such term is defined in Exchange Act Rules 13a-15 (f) and 15d-15 (f). Under the supervision and with the participation of our management, including the Chief Executive Officer and Chief Financial Officer of the Operating Partnership's general partner, the Operating Partnership conducted an evaluation of the effectiveness of its internal control over financial reporting as of December 31, 2020 based on the framework in Internal Control-Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 Framework) (COSO). Based on that evaluation, the Operating Partnership concluded that its internal control over financial reporting was effective as of December 31, 2020.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree or compliance with the policies or procedures may deteriorate.

The effectiveness of the Operating Partnership's internal control over financial reporting as of December 31, 2020 has been audited by Ernst & Young LLP, an independent registered public accounting firm, as stated in their report which appears herein.

## Changes in Internal Control over Financial Reporting

There have been no significant changes in the Operating Partnership's internal control over financial reporting during the year ended December 31, 2020 that has materially affected, or is reasonably likely to materially affect, its internal control over financial reporting.

## MARKET FOR REGISTRANTS' COMMON EQUITY AND RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES

## SL GREEN REALTY CORP.

Our common stock trades on the New York Stock Exchange, or the NYSE, under the symbol "SLG." On February 25, 2021, the reported closing sale price per share of common stock on the NYSE was $67.46 and there were 392 holders of record of our common stock.

On December 4, 2020 our Board of Directors declared an ordinary dividend and a special dividend (together, "the Total Dividend"). The Total Dividend was paid on January 15, 2021 to shareholders of record at the close of business on December 15, 2020 ("the Record Date"). Shareholders had the opportunity to elect to receive the Total Dividend in the form of all cash or all stock, subject to proration if either option was oversubscribed.

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

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



## SL GREEN OPERATING PARTNERSHIP, L.P.

At December 31, 2020, there were 3,938,823 units of limited partnership interest of the Operating Partnership outstanding and held by persons other than the Company, which received distributions per unit of the same amount and in the same manner as dividends per share were distributed to common stockholders.

There is no established public trading market for the common units of the Operating Partnership. On February 25, 2021, there were 54 holders of record and 73,517,930 common units outstanding, 69,350,829 of which were held by SL Green.

In order for SL Green to maintain its qualification as a REIT, it must make annual distributions to its stockholders of at least 90% of its taxable income (not including net capital gains). SL Green has adopted a policy of paying regular quarterly dividends on its common stock, and the Operating Partnership has adopted a policy of paying regular quarterly distributions to its common units in the same amount as dividends paid by SL Green. Cash distributions have been paid on the common stock of SL Green and the common units of the Operating Partnership since the initial public offering of SL Green. Distributions are declared at the discretion of the board of directors of SL Green and depend on actual and anticipated cash from operations, financial condition, capital requirements, the annual distribution requirements under the REIT provisions of the Internal Revenue Code and other factors SL Green’s board of directors may consider relevant.

Each time SL Green issues shares of stock (other than in exchange for common units of limited partnership interest of the Operating Partnership, or OP Units, when such OP Units are presented for redemption), it contributes the proceeds of such issuance to the Operating Partnership in return for an equivalent number of units of limited partnership interest with rights and preferences analogous to the shares issued.

## ISSUER PURCHASES OF EQUITY SECURITIES

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

At December 31, 2020, repurchases executed under the program were as follows:

<table><tr><td>Period</td><td>Shares repurchased</td><td>Average price paid per share</td><td>Cumulative number of shares repurchased as part of the repurchase plan or programs</td></tr><tr><td>Year ended 2017</td><td>8,105,881</td><td>$104.61</td><td>8,105,881</td></tr><tr><td>Year ended 2018</td><td>9,468,617</td><td>$99.03</td><td>17,574,498</td></tr><tr><td>Year ended 2019</td><td>4,465,857</td><td>$86.06</td><td>22,040,355</td></tr><tr><td>Year ended 2020 \( ^{(1)} \)</td><td>8,538,995</td><td>$62.39</td><td>30,579,350</td></tr></table>

(1) Includes 63,374 shares of common stock repurchased by the Company in December 2020 that were settled in January 2021.

## SALE OF UNREGISTERED AND REGISTERED SECURITIES; USE OF PROCEEDS FROM REGISTERED SECURITIES

During the year ended December 31, 2020, we issued 98,004 shares of our common stock to holders of units of limited partnership interest in the Operating Partnership upon the redemption of such units pursuant to the partnership agreement of the Operating Partnership. During the years ended December 31, 2019 and 2018, we issued 4,871 and 155,916 shares of our common stock, respectively, to holders of units of limited partnership interest in the Operating Partnership upon the redemption of such units pursuant to the partnership agreement of the Operating Partnership. The issuance of such shares was exempt from registration under the Securities Act, pursuant to the exemption contemplated by Section 4(a)(2) thereof for transactions not involving a public offering. The units were exchanged for an equal number of shares of our common stock.



The following table summarizes information, as of December 31, 2020, relating to our equity compensation plans pursuant to which shares of our common stock or other equity securities may be granted from time to time.

<table><tr><td>Plan category</td><td>Number of securities to be issued upon exercise of outstanding options, warrants and rights (a)</td><td>Weighted average exercise price of outstanding options, warrants and rights (b)</td><td>Number of securities remaining available for future issuance under equity compensation plans (excluding securities reflected in column (a)) (c)</td></tr><tr><td>Equity compensation plans approved by security holders (1)</td><td>3,502,613</td><td>$ 102.62</td><td>3,309,300</td></tr><tr><td>Equity compensation plans not approved by security holders</td><td>—</td><td>—</td><td>—</td></tr><tr><td>Total</td><td>3,502,613</td><td>$ 102.62</td><td>3,309,300</td></tr></table>

(1) Includes our Fourth Amended and Restated 2005 Stock Option and Incentive Plan, Amended 1997 Stock Option and Incentive Plan, as amended, and 2008 Employee Stock Purchase Plan.

(2) Includes (i) 784,995 shares of common stock issuable upon the exercise of outstanding options (784,022 of which are vested and exercisable), (ii) 10,750 restricted stock units and 140,775 phantom stock units that may be settled in shares of common stock (140,775 of which are vested), (iii) 2,252,911 LTIP units that, upon the satisfaction of certain conditions, are convertible into common units, which may be presented to us for redemption and acquired by us for shares of our common stock (1,538,561 of which are vested).

(3) Because there is no exercise price associated with restricted stock units, phantom stock units or LTIP units, these awards are not included in the weighted-average exercise price calculation.

(4) Balance is after reserving for shares underlying outstanding restricted stock units, phantom stock units granted pursuant to our Non-Employee Directors' Deferral Program and LTIP Units. The number of securities remaining available consists of shares remaining available for issuance under our 2008 Employee Stock Purchase Plan and Third Amended and Restated 2005 Stock Option and Incentive Plan.



## RECONCILIATION OF NON-GAAP FINANCIAL MEASURES

Funds From Operations (FFO) and Funds Available for Distribution (FAD) Reconciliations

Below are reconciliations of net income attributable to our stockholders to FFO per share, Pro forma FFO per share, and FAD attributable to our stockholders and unit holders for the years ended December 31, 2020, and 2019 (amounts in thousands, except per share data).

<table><tr><td rowspan="2">Funds From Operations (FFO) Reconciliation:</td><td colspan="3">Twelve Months Ended December 31,</td></tr><tr><td>2020</td><td>2019</td><td></td></tr><tr><td>Net income attributable to SL Green common stockholders</td><td>$ 356,105</td><td>$ 255,484</td><td></td></tr><tr><td>Add:</td><td></td><td></td><td></td></tr><tr><td>Depreciation and amortization</td><td>313,668</td><td>272,358</td><td></td></tr><tr><td>Joint venture depreciation and noncontrolling interest adjustments</td><td>205,869</td><td>192,426</td><td></td></tr><tr><td>Net income attributable to noncontrolling interests</td><td>34,956</td><td>10,142</td><td></td></tr><tr><td>Less:</td><td></td><td></td><td></td></tr><tr><td>Gain (loss) on sale of real estate, net</td><td>215,506</td><td>(16,749)</td><td></td></tr><tr><td>Equity in net gain on sale of interest in unconsolidated joint venture/real estate</td><td>2,961</td><td>76,181</td><td></td></tr><tr><td>Purchase price and other fair value adjustments</td><td>187,522</td><td>69,389</td><td></td></tr><tr><td>Depreciable real estate reserves</td><td>(60,454)</td><td>(7,047)</td><td></td></tr><tr><td>Depreciation on non-rental real estate assets</td><td>2,338</td><td>2,935</td><td></td></tr><tr><td>FFO attributable to SL Green common stockholders and unit holders</td><td>$ 562,725</td><td>$ 605,701</td><td></td></tr><tr><td>Diluted weighted average shares and units outstanding \( ^{(1)} \)</td><td>77,243</td><td>84,234</td><td></td></tr><tr><td>Pro forma adjustment \( ^{(2)} \)</td><td>1,874</td><td>2,328</td><td></td></tr><tr><td>Pro forma diluted weighted average shares and units outstanding \( ^{(2)} \)</td><td>79,117</td><td>86,562</td><td></td></tr><tr><td>FFO per share (Diluted) \( ^{(1)} \)</td><td>$ 7.29</td><td>$ 7.19</td><td></td></tr><tr><td>FFO per share (Pro forma) \( ^{(2)} \)</td><td>$ 7.11</td><td>$ 7.00</td><td></td></tr></table>

(1) During the first quarter of 2021, the Company completed a reverse stock split to mitigate the dilutive impact of stock issued for a special dividend paid primarily in stock. Diluted weighted average common shares and units outstanding have been retroactively adjusted to reflect the reverse stock split.

(2) During the first quarter of 2021, the Company completed a reverse stock split and a special dividend paid primarily in stock. GAAP requires the weighted average common shares outstanding to be adjusted retroactively for all periods presented to reflect the reverse stock split. However, GAAP requires shares issued pursuant to the special dividend be included in diluted weighted average common shares outstanding only from the date on which the special dividend was declared. To facilitate comparison between the periods presented, the Company calculated Pro forma diluted weighted average shares and units outstanding, which includes the shares issued pursuant to the special dividend from the beginning of the 2020 reporting periods.

<table><tr><td rowspan="2">Funds Available for Distribution (FAD) Reconciliation:</td><td colspan="3">Twelve Months Ended December 31,</td></tr><tr><td>2020</td><td>2019</td><td></td></tr><tr><td>FFO attributable to SL Green common stockholders and unit holders</td><td>$ 562,725</td><td>$ 605,701</td><td></td></tr><tr><td>Add:</td><td></td><td></td><td></td></tr><tr><td>Non real estate depreciation and amortization</td><td>2,338</td><td>2,935</td><td></td></tr><tr><td>Amortization of deferred financing costs</td><td>11,794</td><td>11,653</td><td></td></tr><tr><td>Non-cash deferred compensation</td><td>43,199</td><td>42,395</td><td></td></tr><tr><td>Less:</td><td></td><td></td><td></td></tr><tr><td>FAD adjustment for joint ventures</td><td>54,528</td><td>99,349</td><td></td></tr><tr><td>Straight-line rental income and other non-cash adjustments</td><td>23,195</td><td>22,616</td><td></td></tr><tr><td>Second cycle tenant improvements</td><td>53,730</td><td>60,202</td><td></td></tr><tr><td>Second cycle leasing commissions</td><td>10,230</td><td>28,287</td><td></td></tr><tr><td>Revenue enhancing recurring CAPEX</td><td>610</td><td>7,820</td><td></td></tr><tr><td>Non-revenue enhancing recurring CAPEX</td><td>22,596</td><td>37,446</td><td></td></tr><tr><td>FAD attributable to SL Green stockholders and unit holders</td><td>$ 455,167</td><td>$ 406,964</td><td></td></tr></table>



## SIGNATURES

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

SL GREEN REALTY CORP.

By:

Dated: February 26, 2021

Matthew J. DiLiberto
Chief Financial Officer

KNOW ALL MEN BY THESE PRESENTS, that we, the undersigned officers and directors of SL Green Realty Corp. hereby severally constitute Marc Holliday and Matthew J. DiLiberto, and each of them singly, our true and lawful attorneys and with full power to them, and each of them singly, to sign for us and in our names in the capacities indicated below, the Annual Report on Form 10-K filed herewith and any and all amendments to said Annual Report on Form 10-K, and generally to do all such things in our names and in our capacities as officers and directors to enable SL Green Realty Corp. to comply with the provisions of the Securities Exchange Act of 1934, as amended, and all requirements of the Securities and Exchange Commission, hereby ratifying and confirming our signatures as they may be signed by our said attorneys, or any of them, to said Annual Report on Form 10-K and any and all amendments thereto.



Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated:

<table><tr><td>Signatures</td><td>Title</td><td>Date</td></tr><tr><td>Marc Holliday</td><td>Chairman of the Board of Directors and Chief Executive Officer (Principal Executive Officer)</td><td>February 26, 2021</td></tr><tr><td>Andrew W. Mathias</td><td>President and Director</td><td>February 26, 2021</td></tr><tr><td>Matthew J. DiLiberto</td><td>Chief Financial Officer (Principal Financial and Accounting Officer)</td><td>February 26, 2021</td></tr><tr><td>Stephen L. Green</td><td>Director</td><td>February 26, 2021</td></tr><tr><td>John H. Alschuler, Jr.</td><td>Director</td><td>February 26, 2021</td></tr><tr><td>Edwin T. Burton, III</td><td>Director</td><td>February 26, 2021</td></tr><tr><td>John S. Levy</td><td>Director</td><td>February 26, 2021</td></tr><tr><td>Craig M. Hatkoff</td><td>Director</td><td>February 26, 2021</td></tr><tr><td>Betsy S. Atkins</td><td>Director</td><td>February 26, 2021</td></tr><tr><td>Lauren B. Dillard</td><td>Director</td><td>February 26, 2021</td></tr></table>



## SIGNATURES

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

SL GREEN OPERATING PARTNERSHIP, L.P.

By: SL Green Realty Corp.

By:

Dated: February 26, 2021

Matthew J. DiLiberto
Chief Financial Officer

KNOW ALL MEN BY THESE PRESENTS, that we, the undersigned officers and directors of SL Green Realty Corp., the sole general partner of SL Green Operating Partnership, L.P., hereby severally constitute Marc Holliday and Matthew J. DiLiberto, and each of them singly, our true and lawful attorneys and with full power to them, and each of them singly, to sign for us and in our names in the capacities indicated below, the Annual Report on Form 10-K filed herewith and any and all amendments to said Annual Report on Form 10-K, and generally to do all such things in our names and in our capacities as officers and directors to enable SL Green Operating Partnership, L.P. to comply with the provisions of the Securities Exchange Act of 1934, as amended, and all requirements of the Securities and Exchange Commission, hereby ratifying and confirming our signatures as they may be signed by our said attorneys, or any of them, to said Annual Report on Form 10-K and any and all amendments thereto.



Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated:

<table><tr><td>Signatures</td><td>Title</td><td>Date</td></tr><tr><td><img src="imgs/img_in_image_box_200_201_435_270.jpg" ></td><td>Chairman of the Board of Directors and Chief Executive Officer of SL Green, the sole general partner of the Operating Partnership (Principal Executive Officer)</td><td>February 26, 2021</td></tr><tr><td>Marc Holliday</td><td>President and Director of SL Green, the sole general partner of the Operating Partnership</td><td>February 26, 2021</td></tr><tr><td>Andrew W. Mathias</td><td>Chief Financial Officer of SL Green, the sole general partner of the Operating Partnership (Principal Financial and Accounting Officer)</td><td>February 26, 2021</td></tr><tr><td>Matthew J. DiLiberto</td><td>Director of SL Green, the sole general partner of the Operating Partnership</td><td>February 26, 2021</td></tr><tr><td>Stephen L. Green</td><td>Director of SL Green, the sole general partner of the Operating Partnership</td><td>February 26, 2021</td></tr><tr><td>John H. Alschuler, Jr.</td><td>Director of SL Green, the sole general partner of the Operating Partnership</td><td>February 26, 2021</td></tr><tr><td>Edwin T. Burton, III</td><td>Director of SL Green, the sole general partner of the Operating Partnership</td><td>February 26, 2021</td></tr><tr><td>John S. Levy</td><td>Director of SL Green, the sole general partner of the Operating Partnership</td><td>February 26, 2021</td></tr><tr><td>Craig M. Hatkoff</td><td>Director of SL Green, the sole general partner of the Operating Partnership</td><td>February 26, 2021</td></tr><tr><td>Betsy S. Atkins</td><td>Director of SL Green, the sole general partner of the Operating Partnership</td><td>February 26, 2021</td></tr><tr><td>Lauren B. Dillard</td><td>Director of SL Green, the sole general partner of the Operating Partnership</td><td>February 26, 2021</td></tr></table>



## Consent of Independent Registered Public Accounting Firm

We consent to the incorporation by reference in the following Registration Statements:

(i) Registration Statement (Form S-3 Nos. 333-70111, 333-30394, 333-62434, 333-126058, 333-228887 and 333-223209) of SL Green Realty Corp. and the related Prospectuses;

(ii) Registration Statement (Form S-8 Nos. 333-61555, 333-87485, 333-89964, 333-127014, 333-143721, 333-189362 and 333-212108) pertaining to the Stock Option and Incentive Plans of SL Green Realty Corp., and

(iii) Registration Statement (Form S-8 No. 333-148973) pertaining to the 2008 Employee Stock Purchase Plan of SL Green Realty Corp.,

of our reports dated February 26, 2021, with respect to the consolidated financial statements of SL Green Realty Corp and the effectiveness of internal control over financial reporting of SL Green Realty Corp., included in this Annual Report (Form 10-K) of SL Green Realty Corp for the year ended December 31, 2020.

Emet + Young LLP



## Consent of Independent Registered Public Accounting Firm

We consent to the incorporation by reference in the Registration Statement (Form S-3 No. 333-228887) of SL Green Operating Partnership, L.P. and in the related Prospectus of our reports dated February 26, 2021, with respect to the consolidated financial statements of SL Green Operating Partnership, L.P., and the effectiveness of internal control over financial reporting of SL Green Operating Partnership, L.P., included in this Annual Report (Form 10-K) for the year ended December 31, 2020.
New York, New York

February 26, 2021

Emet + Young LLP



# CERTIFICATION

## I, Marc Holliday, certify that:

1. I have reviewed this annual report on Form 10-K of SL Green Realty Corp. (the “registrant”);

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: February 26, 2021

___

Name: Marc Holliday

Title: Chairman and Chief Executive Officer



# CERTIFICATION

## I, Matthew J. DiLiberto, certify that:

1. I have reviewed this annual report on Form 10-K of SL Green Realty Corp. (the “registrant”);

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: February 26, 2021

Name: Matthew J. DiLiberto

Title: Chief Financial Officer



# CERTIFICATION

## I, Marc Holliday, certify that:

1. I have reviewed this annual report on Form 10-K of SL Green Operating Partnership, L.P. (the “registrant”);

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: February 26, 2021

___

Name: Marc Holliday

Title: Chairman and Chief Executive Officer of SL Green Realty Corp., the general partner of the registrant



# CERTIFICATION

## I, Matthew J. DiLiberto, certify that:

1. I have reviewed this annual report on Form 10-K of SL Green Operating Partnership, L.P. (the “registrant”);

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: February 26, 2021

Name: Matthew J. DiLiberto

Title: Chief Financial Officer
of SL Green Realty Corp., the
general partner of the registrant



# CERTIFICATION PURSUANT TO
18 U.S.C. SECTION 1350,
AS ADOPTED PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Annual Report of SL Green Realty Corp. (the “Company”) on Form 10-K as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Marc Holliday, Chairman and Chief Executive Officer of the Company, hereby certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

1. The Report fully complies with the requirements of Section 13(a) or 15(d), as applicable, of the Securities Exchange Act of 1934; and

2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Name: Marc Holliday

Title: Chairman and Chief Executive Officer

February 26, 2021



# CERTIFICATION PURSUANT TO
18 U.S.C. SECTION 1350,
AS ADOPTED PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Annual Report of SL Green Realty Corp. (the “Company”) on Form 10-K as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Matthew J. DiLiberto, Chief Financial Officer of the Company, hereby certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

1. The Report fully complies with the requirements of Section 13(a) or 15(d), as applicable, of the Securities Exchange Act of 1934; and

2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Name: Matthew J. DiLiberto

Title: Chief Financial Officer

February 26, 2021



# CERTIFICATION PURSUANT TO
18 U.S.C. SECTION 1350,
AS ADOPTED PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Annual Report of SL Green Operating Partnership, L.P. (the “Operating Partnership”) on Form 10-K as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Marc Holliday, Chairman and Chief Executive Officer of SL Green Realty Corp, the sole general partner of the Operating Partnership, hereby certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

1. The Report fully complies with the requirements of Section 13(a) or 15(d), as applicable, of the Securities Exchange Act of 1934; and

2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Operating Partnership.



Name: Marc Holliday

Title: Chairman and Chief Executive Officer

of SL Green Realty Corp., the

general partner of the Operating Partnership

February 26, 2021



# CERTIFICATION PURSUANT TO
18 U.S.C. SECTION 1350,
AS ADOPTED PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Annual Report of SL Green Operating Partnership, L.P. (the “Operating Partnership”) on Form 10-K as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Matthew J. DiLiberto, Chief Financial Officer of SL Green Realty Corp, the sole general partner of the Operating Partnership, hereby certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

1. The Report fully complies with the requirements of Section 13(a) or 15(d), as applicable, of the Securities Exchange Act of 1934; and

2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Operating Partnership.

Name: Matthew J. DiLiberto

Title: Chief Financial Officer

of SL Green Realty Corp., the

general partner of the Operating Partnership

February 26, 2021



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## Corporate Directory

Board of Directors

Marc Holliday
Chairman & Chief Executive Officer

Andrew W. Mathias
President

Stephen L. Green
Chairman Emeritus

John H. Alschuler, Jr.
Lead Independent Director;
Chair of the Board,
HR&A Advisors Inc.

Edwin T. Burton, III
Professor of Economics,
University of Virginia

John S. Levy
Private Investor

Craig M. Hatkoff
Co-founder, Tribeca Film Festival;
Chairman, Turtle Pond Publications, LLC

Betsy Atkins
CEO & Founder, Baja Corporation

Lauren B. Dillard
Executive Vice President –
Head of Investment Intelligence,
Nasdaq

5-Year Total Return to Shareholders



Executive Officers

Marc Holliday
Chairman & Chief Executive Officer

Andrew W. Mathias
President

Matthew J. DiLiberto
Chief Financial Officer

Andrew S. Levine
Chief Legal Officer,
General Counsel

Counsel

Skadden, Arps, Slate,
Meagher & Flom LLP
New York, NY

Auditors

Ernst & Young LLP
New York, NY

(Includes reinvestment of dividends)
(Based on $100 investment)

Registrar & Transfer Agent

Computershare Investor Services
P.O. Box 505000
Louisville, KY 40233-5000
866-230-9138
www.computershare.com/investor

Stock Listing

NYSE Symbol: SLG, SLG Prl

Investor Relations

One Vanderbilt Avenue
New York, NY 10017
Tel: 212-216-1654
E-mail:
investor.relations@slgreen.com

www.slgreen.com

Annual Meeting

Tuesday, June 8, 2021,
12:00 p.m. ET
The Annual Meeting will
be held remotely.
www.virtualshareholder
meeting.com/SLG2021

Executive Offices

One Vanderbilt Avenue
New York, NY 10017
Tel: 212-594-2700
Fax: 212-216-1785
www.slgreen.com



SL GREEN REALTY CORP.

One Vanderbilt Avenue
New York, NY 10017
212.594.2700
www.slgreen.com