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What changed in SL GREEN REALTY CORP's 10-K — 2022 vs 2023

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Paragraph-level year-over-year comparison of SL GREEN REALTY CORP's 2022 and 2023 10-K annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2023 report.

+293 added−311 removedSource: 10-K (2024-02-23) vs 10-K (2023-02-17)

Top changes in SL GREEN REALTY CORP's 2023 10-K

293 paragraphs added · 311 removed · 242 edited across 7 sections

Item 1. Business

Business — how the company describes what it does

38 edited+20 added−13 removed52 unchanged
Biggest changeAnnualized Cash Rent of Expiring Leases Annualized Cash Rent Per Square Foot of Expiring Leases $/psf (2) Current Weighted Average Asking Rent $/psf (3) 2022 (4) 13 53,301 0.60 % $4,079,391 $76.53 $69.29 5 53,011 0.40 % $3,872,976 $73.06 $68.96 1st Quarter 2023 12 161,834 1.80 % $13,445,071 $83.08 $83.87 7 468,045 3.50 % $38,824,470 $82.95 $70.54 2nd Quarter 2023 18 150,621 1.70 % 11,880,107 78.87 75.01 3 26,097 0.20 % 2,298,635 88.08 82.75 3rd Quarter 2023 21 210,174 2.30 % 10,045,563 47.80 81.88 6 51,515 0.40 % 5,701,294 110.67 99.92 4th Quarter 2023 21 411,436 4.60 % 25,311,876 61.52 66.25 8 126,298 0.90 % 12,818,602 101.49 76.94 Total 2023 72 934,065 10.40 % $60,682,617 $64.97 $74.23 24 671,955 5.00 % $59,643,001 $88.76 $74.47 2024 57 449,778 5.00 % $26,549,129 $59.03 $56.77 30 1,014,470 7.60 % $112,022,038 $110.42 $79.55 2025 62 497,644 5.60 % 43,715,047 87.84 70.36 26 425,848 3.20 % 41,695,535 97.91 85.76 2026 48 1,068,123 11.90 % 87,743,733 82.15 76.49 35 587,690 4.40 % 63,670,124 108.34 91.64 2027 56 718,866 8.00 % 57,264,515 79.66 70.68 26 283,795 2.10 % 38,193,157 134.58 110.46 2028 33 661,497 7.40 % 48,905,505 73.93 70.06 30 294,902 2.20 % 32,090,762 108.82 104.10 2029 21 400,505 4.50 % 27,172,272 67.85 63.50 17 884,966 6.60 % 66,377,729 75.01 75.37 2030 21 801,723 9.00 % 54,260,411 67.68 66.24 18 455,760 3.40 % 45,619,919 100.10 89.52 2031 16 474,630 5.30 % 34,630,194 72.96 77.71 23 2,802,003 21.00 % 205,840,767 73.46 76.24 Thereafter 62 2,885,420 32.30 % 189,149,932 65.55 66.89 76 5,869,628 44.10 % 535,962,560 91.31 97.11 461 8,945,552 100.00 % $634,152,746 $70.89 $69.40 310 13,344,028 100.00 % $1,204,988,568 $90.30 $88.27 NOTE: Data excludes space currently occupied by SL Green's corporate offices (1) Tenants may have multiple leases.
Biggest changeAnnualized Cash Rent of Expiring Leases Annualized Cash Rent Per Square Foot of Expiring Leases $/psf (2) Current Weighted Average Asking Rent $/psf (3) 2023 (4) 16 177,309 2.30 % $10,016,868 $56.49 $59.01 6 114,048 0.80 % $11,892,355 $104.27 $83.77 1st Quarter 2024 9 40,596 0.50 % $3,623,916 $89.27 $72.65 8 122,938 0.90 % $13,392,794 $108.94 $105.28 2nd Quarter 2024 19 55,415 0.70 % 3,451,449 62.28 58.02 7 56,635 0.40 % 4,804,151 84.83 71.55 3rd Quarter 2024 11 106,551 1.40 % 4,049,418 38.00 36.79 5 604,236 4.40 % 69,411,649 114.88 81.77 4th Quarter 2024 20 288,851 3.90 % 17,558,046 60.79 57.84 8 48,235 0.30 % 5,240,414 108.64 83.63 Total 2024 59 491,413 6.50 % $28,682,829 $58.37 $54.52 28 832,044 6.00 % $92,849,008 $111.59 $84.66 2025 71 680,624 9.00 % $55,301,323 $81.25 $67.23 26 373,433 2.70 % $36,125,921 $96.74 $83.31 2026 54 776,991 10.20 % 53,956,330 69.44 65.44 42 802,152 5.80 % 89,411,068 111.46 100.46 2027 55 650,165 8.60 % 52,559,470 80.84 64.19 29 352,724 2.50 % 44,741,842 126.85 113.71 2028 53 698,668 9.20 % 52,371,028 74.96 67.99 30 305,851 2.20 % 35,200,396 115.09 113.74 2029 33 591,177 7.80 % 38,909,520 65.82 60.79 17 893,912 6.40 % 64,603,106 72.27 75.99 2030 22 696,540 9.20 % 49,396,547 70.92 66.02 21 505,445 3.60 % 51,835,737 102.55 90.09 2031 18 321,405 4.20 % 22,841,818 71.07 67.96 27 2,912,088 21.00 % 219,024,122 75.21 76.64 2032 16 669,608 8.80 % 40,664,070 60.73 54.14 15 1,075,978 7.80 % 95,341,186 88.61 91.77 Thereafter 60 1,835,137 24.20 % 112,016,314 61.04 54.67 75 5,714,468 41.20 % 556,177,116 97.33 102.86 457 7,589,037 100.00 % $516,716,117 $68.09 $61.07 316 13,882,143 100.00 % $1,297,201,857 $93.44 $92.91 NOTE: Data excludes space currently occupied by SL Green's corporate offices (1) Tenants may have multiple leases.
ITEM 1. BUSINESS General SL Green Realty Corp. is a self-managed real estate investment trust, or REIT, engaged in the acquisition, development, redevelopment, repositioning, ownership, management and operation of commercial real estate properties, principally office properties, located in the New York metropolitan area, principally in Manhattan, a borough of New York City.
ITEM 1. BUSINESS General SL Green Realty Corp. is a self-managed real estate investment trust, or REIT, engaged in the ownership, management, operation, acquisition, development, redevelopment and repositioning of commercial real estate properties, principally office properties, located in the New York metropolitan area, principally in Manhattan, a borough of New York City.
Development / Redevelopment Our constant interactions with tenants and other market participants keep us abreast of innovations in workplace layout, store design and smart living. We leverage this information to identify properties primed for development or redevelopment to meet these demands and unlock value.
Development / Redevelopment Our constant interactions with tenants and other market participants keep us abreast of innovations in workplace layout, amenitization, store design and smart living. We leverage this information to identify properties primed for development or redevelopment to meet these demands and unlock value.
Percent Occupied includes leases signed but not yet commenced. (2) Excludes properties under development. Market Rent Trajectory We are constantly evaluating our schedule of future lease expirations to mitigate occupancy risk while maximizing net effective rents. We proactively manage future lease expirations based on our view of estimated current and future market conditions and asking rents.
Percent Occupied includes leases signed but not yet commenced. (2) Excludes properties under development or redevelopment. Rent Trajectory We are constantly evaluating our schedule of future lease expirations to mitigate occupancy risk while maximizing net effective rents. We proactively manage future lease expirations based on our view of estimated current and future market conditions and asking rents.
Green, who serves as a member and the chairman emeritus of the Company's board of directors, had been engaged in the business of owning, managing, leasing, and repositioning office properties in Manhattan. As of December 31, 2022, we owned the following interests in properties in the New York metropolitan area, primarily in midtown Manhattan.
Green, who serves as a member and the chairman emeritus of the Company's board of directors, had been engaged in the business of owning, managing, leasing, and repositioning office properties in Manhattan. As of December 31, 2023, we owned the following interests in properties in the New York metropolitan area, primarily in midtown Manhattan.
The tenant will typically pay additional amounts only for services that exceed base building services or for services that are provided other than during normal business hours. In a typical lease for a new tenant renting in excess of 10,000 square feet, the landlord will deliver the premises with existing improvements demolished.
The tenant will typically pay additional amounts only for services that exceed base building services or for services that are provided other than during normal business hours. 8 Table of Contents In a typical lease for a new tenant renting in excess of 10,000 square feet, the landlord will deliver the premises with existing improvements demolished.
Industry Segments The Company is a REIT that is engaged in the acquisition, development, redevelopment, repositioning, ownership, management and operation of commercial properties, principally office properties, located in the New York metropolitan area, principally Manhattan, and has two reportable segments: real estate and debt and preferred equity investments.
Industry Segments The Company is a REIT that is engaged in the ownership, management, operation, acquisition, development, redevelopment and repositioning of commercial properties, principally office properties, located in the New York metropolitan area, principally Manhattan, and has three reportable segments: real estate, debt and preferred equity investments, and SUMMIT.
No other tenant contributed more than 5.0% of our share of annualized cash rent. No property contributed in excess of 10.0% of our consolidated total revenue for 2022.
No other tenant contributed more than 5.0% of our share of annualized cash rent. No property contributed in excess of 10.0% of our consolidated total revenue for 2023.
(2) As of December 31, 2022, we owned a building at 7 Dey Street / 185 Broadway that was comprised of approximately 140,382 square feet (unaudited) of residential space and approximately 50,206 square feet (unaudited) of office and retail space. For the purpose of this report, we have included this building in the number of residential properties we own.
(3) As of December 31, 2023, we owned a building at 7 Dey Street / 185 Broadway that was comprised of approximately 140,382 square feet (unaudited) of residential space and approximately 50,206 square feet (unaudited) of office and retail space. For the purpose of this report, we have included this building in the number of residential properties we own.
Real estate property operating expenses consist primarily of cleaning, security, maintenance, utility costs, real estate taxes and, at certain properties, ground rent expense. As of December 31, 2022, one tenant in our office portfolio, Paramount Global (formerly ViacomCBS Inc.), contributed 5.4% of our share of annualized cash rent.
Real estate property operating expenses consist primarily of cleaning, security, maintenance, utility costs, real estate taxes and, at certain properties, ground rent expense. As of December 31, 2023, one tenant in our office portfolio, Paramount Global (formerly ViacomCBS Inc.), contributed 5.9% of our share of annualized cash rent.
Our industry segments are discussed in Note 21, "Segment Information," in the accompanying consolidated financial statements. 9 Table of Contents As of December 31, 2022, our real estate portfolio was principally located in one geographical market, Manhattan, a borough of New York City. The Company's primary sources of real estate revenue are tenant rents, escalations and reimbursement revenue.
Our industry segments are discussed in Note 21, "Segment Information," in the accompanying consolidated financial statements. As of December 31, 2023, our real estate portfolio was principally located in one geographical market, Manhattan, a borough of New York City. The Company's primary sources of real estate revenue are tenant rents, escalations and reimbursement revenue.
By cultivating a work culture that prioritizes our people through training, diversity, education, and volunteerism, we have been able to retain a long-tenured staff with 44% of current employees having a tenure of five years or more and a management team that has an average tenure of 20.3 years.
By cultivating a work culture that prioritizes our people through training, diversity, education, and volunteerism, we have been able to retain a long-tenured staff with 47% of current employees having a tenure of five years or more and an executive management team that has an average tenure of 20.9 years.
As of December 31, 2022, we employed 1,137 employees, 303 of whom were employed in our corporate offices. There are currently five collective bargaining agreements which cover the union workforce that services substantially all of our properties. Climate Change Our assessment of climate-related issues includes physical risks, transitions risks, and associated opportunities.
As of December 31, 2023, we employed 1,188 employees, 308 of whom were employed in our corporate offices. There are currently five collective bargaining agreements which cover the union workforce that services substantially all of our properties. Climate Change Our assessment of climate-related issues includes physical risks, transitions risks, and associated opportunities.
Substantially all of our assets are held by, and all of our operations are conducted through, the Operating Partnership. We are the sole managing general partner of the Operating Partnership, and as of December 31, 2022, we owned 94.61% of its economic interests.
Substantially all of our assets are held by, and all of our operations are conducted through, the Operating Partnership. We are the sole managing general partner of the Operating Partnership, and as of December 31, 2023, we owned 94.25% of its economic interests.
Manhattan's diverse tenant base is exemplified by the following tables, which show the percentage of leasing volume attributable to each industry: Percent of Manhattan Leasing Volume (1) Industry 2022 2021 Financial Services 40.1 % 29.9 % Technology, Advertising, Media, and Information ("TAMI") 18.2 % 33.4 % Professional Services 11.4 % 6.0 % Public Sector 7.9 % 4.2 % Legal Services 7.6 % 6.9 % Retail/Wholesale 5.7 % 7.1 % Health Services 4.2 % 5.7 % Other 4.9 % 6.8 % (1) Source: Cushman and Wakefield Research Services General Terms of Leases in the Manhattan Markets Leases entered into for space in Manhattan typically contain terms that may not be contained in leases in other U.S. office markets.
Manhattan's diverse tenant base is exemplified by the following tables, which show the percentage of leasing volume attributable to each industry: Percent of Manhattan Leasing Volume (1) Industry 2023 2022 Financial Services 39.1 % 40.1 % Legal Services 17.2 % 7.6 % Technology, Advertising, Media, and Information ("TAMI") 15.2 % 18.2 % Public Sector 12.4 % 7.9 % Retail/Wholesale 6.2 % 5.7 % Professional Services 5.6 % 11.4 % Real Estate 2.2 % — % Other 2.1 % 4.9 % Health Services — % 4.2 % (1) Source: Cushman and Wakefield Research Services General Terms of Leases in the Manhattan Markets Leases entered into for space in Manhattan typically contain terms that may not be contained in leases in other U.S. office markets.
As of December 31, 2022, we also managed one office building owned by a third party encompassing approximately 0.3 million square feet, and held debt and preferred equity investments with a book value of $623.3 million, excluding debt and preferred equity investments and other financing receivables totaling $8.5 million that are included in balance sheet line items other than the Debt and preferred equity investments line item.
As of December 31, 2023, we also managed one office building and one retail building owned by a third party encompassing approximately 0.4 million square feet, and held debt and preferred equity investments with a book value of $346.7 million, excluding debt and preferred equity investments and other financing receivables totaling $7.9 million that are included in balance sheet line items other than the Debt and preferred equity investments line item.
According to Cushman and Wakefield Research Services as of December 31, 2022, Manhattan has a total office inventory of approximately 414.6 million square feet, including approximately 258.4 million square feet in midtown. The properties in our portfolio are primarily concentrated in some of Manhattan's most prominent midtown locations.
According to Cushman and Wakefield Research Services, as of December 31, 2023, Manhattan has a total office inventory of approximately 418.9 million square feet, including 263.1 million square feet in midtown. The properties in our portfolio are primarily concentrated in some of Manhattan's most prominent midtown locations.
As of December 31, 2022, we held debt and preferred equity investments with a book value of $623.3 million, excluding debt and preferred equity investments and other financing receivables totaling $8.5 million that are included in balance sheet line items other than the Debt and preferred equity investments line item.
As of December 31, 2023, we held debt and preferred equity investments with a book value of $346.7 million, excluding debt and preferred equity investments and other financing receivables totaling $7.9 million that are included in balance sheet line items other than the Debt and preferred equity investments line item.
Our corporate offices are located in midtown Manhattan at One Vanderbilt Avenue, New York, New York 10017. As of December 31, 2022, we employed 1,137 employees, 303 of whom were employed in our corporate offices. We can be contacted at (212) 594-2700. We maintain a website at www.slgreen.com .
Our corporate offices are located in midtown Manhattan at One Vanderbilt Avenue, New York, New York 10017. As of December 31, 2023, we employed 1,188 employees, 308 of whom were employed in our corporate offices. We maintain a website at www.slgreen.com and can be contacted at (212) 594-2700 or by email at investor.relations@slgreen.com.
As of December 31, 2022, the assets underlying our debt and preferred equity investments were located in New York City. The primary sources of debt and preferred equity revenue are interest and fee income. Human Capital Our employees are our most important asset.
As of December 31, 2023, all of the assets underlying our debt and preferred equity investments were located in New York City. The primary sources of debt and preferred equity revenue are interest and fee income.
(2) Represents in place annualized rent allocated by year of expiration. (3) Management's estimate of current average asking rents for currently occupied space as of December 31, 2022. Taking rents are typically lower than asking rents and may vary from property to property. (4) Includes month to month holdover tenants that expired prior to December 31, 2022.
(2) Represents in place annualized rent allocated by year of expiration. 9 Table of Contents (3) Management's estimate of current average asking rents for currently occupied space as of December 31, 2023. Taking rents are typically lower than asking rents and may vary from property to property.
With our roots in New York City, we are at the center of one of the world's most ambitious climate legislative environments. Through the Climate Leadership and Community Protection Act signed into law in 2019, New York State mandated the adoption of a net-zero carbon economy statewide by 2050, with a zero-carbon electricity grid by 2040.
Through the Climate Leadership and Community Protection Act signed into law in 2019, New York State mandated the adoption of a net-zero carbon economy statewide by 2050, with a zero-carbon electricity grid by 2040.
The weighted average occupancy for residential properties represents the total occupied units divided by total available units. Properties under construction are not included in the calculation of weighted average occupancy.
The weighted average leased occupancy for residential properties represents the total leased units divided by total available units. Properties under construction are not included in the calculation of weighted average leased occupancy. (2) Includes assets within the Company's alternative strategy portfolio.
Business and Growth Strategies SL Green, Manhattan's largest owner of office real estate, is focused primarily on the acquisition, development, redevelopment, repositioning, ownership, management, and operation of Manhattan commercial properties, principally office properties.
Business and Growth Strategies SL Green, Manhattan's largest owner of office real estate, is focused primarily on the ownership, management, operation, acquisition, development, redevelopment and repositioning of Manhattan commercial properties, principally office properties. Our primary business objective is to maximize the total return to stockholders, through dividends, earnings and asset value appreciation.
While the near-term addition of new supply to the Manhattan office inventory is expected to be nominal relative to the size of the overall market, we view new supply in locations near a variety of transportation options as a positive to the Manhattan office market given the older vintage of the majority of Manhattan’s office inventory and the increasing desire of tenants to occupy new, high quality, efficient office space that provides for easy commutability for their employees. 7 Table of Contents Leasing activity in Manhattan improved significantly in 2022.
While the near-term addition of new supply to the Manhattan office inventory is expected to be nominal relative to the size of the overall market, we view new supply in locations near a variety of transportation options as a positive to the Manhattan office market given the older vintage of the majority of Manhattan’s office inventory and the increasing desire of tenants to occupy new, high quality, efficient office space that provides for easy commutability for their employees. 7 Table of Contents According to Cushman and Wakefield Research Services, the total volume of leases signed in Manhattan for the years ended December 31, 2023 and 2022 was 18.0 million and 24.3 million square feet, respectively.
We do not anticipate any material financial impact on our portfolio in the first compliance period of 2024 to 2029. 10 Table of Contents The Company has demonstrated a commitment to transparency on climate issues via annual public reporting informed by widely-adopted frameworks, including Global Reporting Initiative ("GRI"), Global Real Estate Benchmark ("GRESB"), Sustainability Accounting Standards Board ("SASB"), and the CDP (formerly the Carbon Disclosure Project).
The Company has demonstrated a commitment to transparency on climate issues via annual public reporting informed by widely-adopted frameworks, including Global Reporting Initiative ("GRI"), Global Real Estate Benchmark ("GRESB"), Sustainability Accounting Standards Board ("SASB"), and the CDP (formerly the Carbon Disclosure Project).
ESG considerations are embedded into our governance structure and management responsibilities, driving our climate-related risk assessment processes and enabling comprehensive risk mitigation responses to be implemented in all relevant business segments across short-term (0-1 year), medium-term (1-15 years), and long-term (15-40 years) time horizons.
ESG considerations are embedded into our governance structure and management responsibilities, driving our climate-related risk assessment processes and enabling comprehensive risk mitigation responses to be implemented in all relevant business segments across short-term (0-3 years), medium-term (3-15 years), and long-term (15-27 years) time horizons. 10 Table of Contents With our roots in New York City, we are at the center of one of the world's most ambitious climate legislative environments.
In addition, landlords may rent space to a tenant that is "pre-built" (i.e., space that was constructed by the landlord in advance of lease signing and is ready to for the tenant to move in with the tenant selecting paint and carpet colors). 8 Table of Contents Occupancy The following table sets forth the weighted average occupancy rates at our office properties based on space leased for properties owned by us as of December 31, 2022: Leased Occupancy as of December 31, Property 2022 2021 Same-Store office properties - Manhattan (1) 91.2% 93.0% Manhattan office properties 90.7% 92.1% Suburban office properties 79.3% 78.9% Unconsolidated joint venture office properties 94.3% 94.1% Portfolio (2) 90.3% 91.6% (1) All office properties located in Manhattan owned by us as of January 1, 2021 and still owned by us in the same manner as of December 31, 2022.
Occupancy The following table sets forth the weighted average occupancy rates at our office properties based on space leased for properties owned by us as of December 31, 2023: Leased Occupancy as of December 31, Property 2023 2022 Same-Store office properties - Manhattan (1) 90.0% 91.2% Manhattan office properties 89.4% 90.7% Suburban office properties 77.1% 79.3% Unconsolidated joint venture office properties 91.1% 94.3% Portfolio (2) 89.2% 90.3% (1) All office properties located in Manhattan owned by us as of January 1, 2022 and still owned by us in the same manner as of December 31, 2023.
In 2021, the Company released its first Task Force on Climate-related Financial Disclosures ("TCFD") report structured in accordance with the 11 TCFD recommendations covering its climate governance, strategy, management, and metrics. This report, along with the Company's current ESG Report, is available under "Reports & Resources" in the "Sustainability" section on our website.
In 2021, the Company released its first Task Force on Climate-related Financial Disclosures ("TCFD") report structured in accordance with the 11 TCFD recommendations covering its climate governance, strategy, management, and metrics. In 2023, the Company released its second TCFD report expanding on our list of physical and transition risks and opportunities and to present its progress on its TCFD disclosure.
We are focused on fostering an inclusive workforce that attracts and retains highly talented and diverse individuals. We are dedicated to creating a diverse workplace where employees feel valued and accepted regardless of race, color, religion, national origin, gender, sexual orientation, age, disability, or veteran status.
We are dedicated to creating a diverse workplace where employees feel valued and accepted regardless of race, color, religion, national origin, gender, sexual orientation, age, disability, or veteran status. We have a dual-track performance management program, which includes both ongoing goal setting and annual performance reviews for all employees.
We have a dual-track performance management program, which includes both ongoing goal setting and annual performance reviews for all employees. Communication, teamwork, and collaboration are the fundamental attributes that are the foundation of our company culture. We promote the professional development of our employees by offering opportunities to participate in trainings and continuing education programs.
Communication, teamwork, and collaboration are the fundamental attributes that are the foundation of our company culture. We promote the professional development of our employees by offering opportunities to participate in trainings and continuing education programs. We also offer a leading benefits package that includes extensive medical coverage, mental health and wellness services, paternal benefits, and financial resources.
The Company is also committed to setting near-term Scope 1 and Scope 2 science-based emissions reduction targets with the SBTi, which are currently in the validation process. Our goal is to reduce emissions for our operationally controlled portfolio to align it with the 1.5 degree Celsius climate scenario.
Our goal is to reduce emissions for our operationally controlled portfolio to align it with the 1.5 degree Celsius climate scenario.
Dispositions • Together with our joint venture partner, entered into an agreement to sell the retail condominiums at 121 Greene Street for a gross sales price of $14.0 million.
The Company retained a 50.1% interest in the property. • Together with our joint venture partner, closed on the sale of the retail condominiums at 121 Greene Street for a gross sales price of $14.0 million. Finance • Closed on a modification of the mortgage at 185 Broadway to extend the maturity to November 2026, as fully extended.
We also offer a leading benefits package that includes extensive medical coverage, mental health and wellness services, paternal benefits, and financial resources. Our compensation program is designed to incentivize employees by offering competitive compensation comprised of fixed and variable pay including base salaries and cash bonuses.
Our compensation program is designed to incentivize employees by offering competitive compensation comprised of fixed and variable pay including base salaries and cash bonuses. Many of our employees also receive equity awards that are subject to vesting over a multi-year period based on continued service.
Our investments located outside of Manhattan are referred to as the Suburban properties: Consolidated Unconsolidated Total Location Property Type Number of Properties Approximate Square Feet Number of Properties Approximate Square Feet Number of Properties Approximate Square Feet Weighted Average Occupancy (1) Commercial: Manhattan Office 13 9,963,138 12 13,998,381 25 23,961,519 90.7 % Retail 2 17,888 9 301,996 11 319,884 91.2 % Development/Redevelopment (1) 5 1,685,215 3 2,746,241 8 4,431,456 N/A 20 11,666,241 24 17,046,618 44 28,712,859 90.7 % Suburban Office 7 862,800 — — 7 862,800 79.3 % Total commercial properties 27 12,529,041 24 17,046,618 51 29,575,659 90.3 % Residential: Manhattan Residential (2) 1 140,382 — — 1 140,382 89.5 % Total portfolio 28 12,669,423 24 17,046,618 52 29,716,041 90.3 % (1) The weighted average occupancy for commercial properties represents the total occupied square feet divided by total square footage at acquisition.
Our investments located outside of Manhattan are referred to as the Suburban properties: Consolidated Unconsolidated Total Location Property Type Number of Properties Approximate Square Feet Number of Properties Approximate Square Feet Number of Properties Approximate Square Feet Weighted Average Leased Occupancy (1) Commercial: Manhattan Office 13 (2) 8,399,141 12 15,412,174 25 (2) 23,811,315 (2) 89.4 % Retail 3 (2) 40,536 7 281,796 10 (2) 322,332 (2) 91.2 % Development/Redevelopment 3 (3) 1,443,771 3 2,893,357 6 (2) 4,337,128 (2) N/A 19 9,883,448 22 18,587,327 41 28,470,775 89.5 % Suburban Office 7 862,800 — — 7 862,800 77.1 % Total commercial properties 26 10,746,248 22 18,587,327 48 29,333,575 89.0 % Residential: Manhattan Residential 1 (3) 140,382 1 221,884 2 362,266 99.0 % Total portfolio 27 10,886,630 23 18,809,211 50 29,695,841 89.2 % (1) The weighted average leased occupancy for commercial properties represents the total leased square footage divided by total square footage at acquisition.
Many of our employees also receive equity awards that are subject to vesting over a multi-year period based on continued service. We believe these equity awards serve as an additional retention tool for our employees.
We believe these equity awards serve as an additional retention tool for our employees and align our employees with our shareholders.
The new $370.0 million mortgage loan, which replaced the previous $197.8 million mortgage, has a term of up to 5 years and bears interest at a floating rate of 2.00% over Term SOFR. • Executed $2.9 billion of LIBOR or SOFR swaps and caps to mitigate the effect of rising interest rates.
The new $500.0 million mortgage replaces the previous $500.0 million mortgage, matures in April 2028, as fully extended, and bears interest at a floating rate of 2.50% over Term SOFR, which the partnership swapped to a fixed rate of 6.11%.
The transaction is expected to close in the first quarter of 2023. • Closed on the sale of 414,317 square feet of office leasehold condominium units at 885 Third Avenue for total consideration of $300.4 million.
The transaction is expected to close in the first quarter of 2024. • Together with our joint venture partners, closed on the sale of the equity interests in the condominium units at 21 East 66th Street for total consideration of $40.6 million. • Closed on the sale of a 49.9% joint venture interest in 245 Park Avenue for a gross asset valuation of $2.0 billion.
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Our primary business objective is to maximize the total return to stockholders, through net income attributable to common stockholders, funds from operations, or FFO, and through asset value appreciation.
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Within that portfolio, office includes one building totaling 2,048,725 square feet, retail includes eight buildings totaling 286,738 square feet and development/redevelopment includes two buildings totaling 1,496,931 square feet.
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According to Cushman and Wakefield Research Services, the total volume of leases signed in Manhattan for the years ended December 31, 2022 and 2021 was 24.3 million and 18.6 million square feet, respectively.
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Experience at SUMMIT SUMMIT One Vanderbilt is an observation deck that offers panoramic views of New York while immersing its visitors in an art experience. SUMMIT opened in October 2021 and welcomed approximately 2.1 million and 1.6 million visitors for the years ended December 31, 2023 and 2022, respectively.
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As we navigated through the challenges of the COVID-19 pandemic, we implemented new employee programs and physical office space enhancements to keep employees healthy, safe, and focused.
Added
Our constant focus and assessment of customer experience includes monitoring crowd volume and wait times for our attractions and services at SUMMIT, allowing us to maximize revenue per customer and adjust operating hours to meet the demand of peak reservation times during the week.
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Through the commitment of our employees, we have remained fully operational for all tenants, including the essential businesses that fill our buildings, and we were among the first employers in New York City to return 100% of our employees to the office in June 2020.
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Overall average asking rents in Manhattan increased in 2023 by 2.4% from $71.62 per square foot as of December 31, 2022 to $73.33 per square foot as of December 31, 2023, while Manhattan Class A asking rents increased to $80.98 per square foot, up 2.9% from $78.72 as of December 31, 2022.
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Highlights from 2022 Our significant achievements from 2022 included: Leasing • Signed 141 Manhattan office leases covering approximately 2.1 million square feet. • Signed a new lease with Franklin Templeton for 347,474 square feet at One Madison Avenue. • Signed a renewal and expansion lease with Kinney Systems, Inc. for 64,926 square feet at 555 West 57th Street. • Signed a new lease with International Business Machines Corporation ("IBM") for 328,000 square feet at One Madison Avenue. • Signed a new lease with a global information services company for 236,026 square feet at 100 Park Avenue. • Signed a lease renewal with UN Women for 85,522 square feet at 220 East 42nd Street.
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In addition, certain tenant industries saw an increase in leasing volume during the year.
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Acquisitions • Closed on the acquisition of 245 Park Avenue at a gross asset valuation of $2.0 billion. The Company previously had a preferred equity investment in the property with a book value of $195.6 million. • Converted the previous mezzanine debt investment in 5 Times Square to a 31.55% common equity interest.
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In addition, landlords may rent space to a tenant that is "pre-built" (i.e., space that was constructed by the landlord in advance of lease signing and is ready to for the tenant to move in with the tenant selecting paint and carpet colors).
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The Company's mezzanine debt investment in the property had a book value of $139.1 million. • Closed on the acquisition of 450 Park Avenue for $445.0 million in a newly formed joint venture. The Company retained a 25.1% in the property.
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(4) Includes month to month holdover tenants that expired prior to December 31, 2023.
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The Company retained the remaining 218,796 square feet of the building. • Closed on the sale of the vacant office condominium at 609 Fifth Avenue for a gross sales price of $100.5 million. • Conveyed 1591-1597 Broadway for a gross sales price of $121.0 million. • Together with our joint venture partner, closed on the sale of 1080 Amsterdam Avenue for a gross sales price of $42.5 million.
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As of December 31, 2023, SUMMIT operates one location at One Vanderbilt Avenue in midtown Manhattan with the primary source of revenue generated from ticket sales. Human Capital Our employees are our most important asset. We are focused on fostering an inclusive workforce that attracts and retains highly talented and diverse individuals.
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Simultaneously, the Company sold its remaining interests in the Stonehenge portfolio for gross consideration of $1.0 million. • Closed on the sale of 707 Eleventh Avenue for a gross sales price of $95.0 million. Finance • Closed on a new $400.0 million corporate unsecured term loan facility. The facility matures in April 2024, as fully extended.
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We earned our first certification as a Great Place to Work in 2019 and in 2023, 85% of our employees have said the Company is a great place to work as compared to 57% at a typical U.S. based company.
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In January 2023, the facility was increased by $25.0 million to $425.0 million. • Refinanced the mortgage loan on 100 Church Street.
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We do not anticipate any material financial impact on our portfolio in the first compliance period of 2024 to 2029.
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As a result of executed derivatives, the Company's share of net floating rate debt exposure was reduced to $1.1 billion, equating to 9.1% of total combined debt, as of December 31, 2022. 11 Table of Contents Debt and Preferred Equity Investments • Funded $100.5 million 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 $565.9 million of proceeds from sales, repayments and participations.
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This report, along with the Company's current ESG Report, is available under "Reports & Resources" in the "Sustainability" section on our website. The Company has committed to near-term Scope 1 and Scope 2 science-based emissions reduction targets with the SBTi, which were approved in early 2023.
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Corporate • Repurchased 2.0 million shares of our common stock and redeemed 0.8 million units of our Operating Partnership under our $3.5 billion share repurchase program at an average price of $70.24 per share.
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Highlights from 2023 Our significant achievements from 2023 included: Leasing • Signed 160 Manhattan office leases covering approximately 1.8 million square feet. • Increased same-store Manhattan office occupancy sequentially in the third and fourth quarters. • Signed an early lease renewal of 141,589 square feet and expansion by an additional 128,316 square feet with a premier financial services tenant at 280 Park Avenue. • Signed an early lease renewal with CBS Broadcasting, Inc. for 184,367 square feet at 555 West 57th Street. • Signed an early lease renewal of 41,851 square feet and expansion by 49,717 square feet with one of the world's largest sovereign wealth funds at 280 Park Avenue. • Signed a new lease with Stonepeak Partners L.P. for 76,716 square feet at 245 Park Avenue. • Signed a new lease with EQT Partners Inc. for 76,204 square feet at 245 Park Avenue.
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From program inception through December 31, 2022, we have repurchased a total of 36.1 million shares of our common stock and redeemed 2.6 million units of our Operating Partnership under the program at an average price of $87.51 per share. 12 Table of Contents
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Acquisitions • Following a UCC foreclosure, the Company converted its previous mezzanine debt investments in the fee interest at 625 Madison Avenue to a 90.43% ownership interest. The fee interest is subject to a $223.0 million third-party mortgage, which matures in December 2026 and bears interest at a fixed rate of 6.05%.
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Dispositions • Together with our joint venture partner, the Company entered into an agreement to sell the fee ownership interest in 625 Madison Avenue for a gross sales price of $634.6 million. In connection with the sale, the Company, together with its joint venture partner, will originate a $235.5 million preferred equity investment in the property.
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The modification also converted the previous floating rate of 2.85% over Term SOFR to a fixed rate of 6.65% per annum through November 2025 and 2.55% over Term SOFR thereafter.
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The Company made a $20.0 million principal payment at closing resulting in an outstanding loan amount of $190.1 million as of December 31, 2023. 11 Table of Contents • Together with our joint venture partner, closed on a modification of the mortgage at 719 Seventh Avenue to extend the maturity date to December 2024 with no change to the interest rate of 1.31% over Term SOFR. • Together with our joint venture partner, closed on a modification of the mortgage at 115 Spring Street to extend the maturity date to March 2025.
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The modification also converted the floating rate of 3.40% over Term SOFR to a fixed rate of 5.50% for the term of the extension. • Together with our joint venture partners, closed on a modification of the construction loan at One Madison Avenue, allowing the partnership to utilize the final tranche of the facility for an expanded range of uses, including additional amenities funded by construction cost savings and for hedging activities in contemplation of a permanent financing. • Together with our joint venture partner, closed on the refinancing of 919 Third Avenue.
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Debt and Preferred Equity Investments • Closed on a $20.0 million upsize and three-year extension of a $39.1 million debt and preferred equity investment that was scheduled to mature in October 2023. • Increased debt and preferred equity investments by $80.3 million, inclusive of advances under future funding obligations, discount and fee amortization, and paid-in-kind interest, net of premium amortization, and transferred investments with a carrying value of $349.9 million to equity ownership.
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Construction in Progress • The 1.4 million square foot tower at One Madison Avenue secured its temporary certificate of occupancy in September 2023, marking completion of the development three months ahead of schedule and significantly under budget. The milestone triggered cash payments to the Company totaling $577.4 million, representing the final equity payment from its joint venture partners.
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The cash was used to repay unsecured corporate debt. • A temporary certificate of occupancy was issued by the New York City Buildings Department for the base building and the dormitory units at 15 Beekman. These units were turned over to Pace University, which has leased the property for a term of 30 years. 12 Table of Contents

Item 1A. Risk Factors

Risk Factors — what could go wrong, per management

63 edited+13 added−20 removed115 unchanged
Biggest changeWe may also need to renegotiate our LIBOR based obligations, which we may not be successful in doing on a timely basis or on terms acceptable to us. Borrowings under our existing term loan and revolving credit facilities bear interest at a rate based on the term SOFR, which is a relatively new reference rate.
Biggest changeIn addition, borrowings under our existing term loan and revolving credit facilities bear interest at a rate based on the term SOFR, which is a relatively new reference rate that replaced U.S. dollar London Interbank Offered Rate ("LIBOR"). As a result of SOFR’s limited performance history, the future performance of SOFR cannot be reliably predicted.
The COVID-19 pandemic caused severe disruptions with wide ranging impacts to virtually every segment of society and the global economy. Office companies in particular have been affected by the increased acceptance of flexible or hybrid work schedules, allowing employees to work remotely and collaborate through video or teleconferencing instead of in-office attendance.
The COVID-19 pandemic caused severe disruptions with wide ranging impacts to virtually every segment of society and the global economy. Office companies in particular have been affected by the subsequent increased acceptance of flexible or hybrid work schedules, allowing employees to work remotely and collaborate through video or teleconferencing instead of in-office attendance.
Although we make efforts to maintain the security and integrity of our systems and have implemented various measures to manage the risk of a security breach or disruption, there can be no assurance that our security efforts and measures will be effective or that attempted security breaches or disruptions would not be successful or damaging.
Although we make efforts to maintain the security and integrity of our systems and have implemented various measures designed to manage the risk of a security breach or disruption, there can be no assurance that our security efforts and measures will be effective or that attempted security breaches or disruptions would not be successful or damaging.
As of December 31, 2022, the expiration dates of these long-term leases range from 2043 to 2119, including the effect of our unilateral extension rights at each of these properties. Pursuant to the leasehold arrangements, we, as tenant under the long-term leasehold or the operating sublease, perform the functions traditionally performed by landlords with respect to our subtenants.
As of December 31, 2023, the expiration dates of these long-term leases range from 2043 to 2119, including the effect of our unilateral extension rights at each of these properties. Pursuant to the leasehold arrangements, we, as tenant under the long-term leasehold or the operating sublease, perform the functions traditionally performed by landlords with respect to our subtenants.
Future weakness and uncertainty in the New York metropolitan area economy could materially reduce the value of our real estate portfolio and our rental revenues, and thus adversely affect our cash flow and our ability to service our debt obligations and to pay dividends and distributions to security holders.
Continued weakness and uncertainty in the New York metropolitan area economy could materially reduce the value of our real estate portfolio and our rental revenues, and thus adversely affect our cash flow and our ability to service our debt obligations and to pay dividends and distributions to security holders.
Future issuances of common stock, preferred stock and convertible debt could dilute existing stockholders' interests. Our charter authorizes our Board of Directors to issue additional shares of common stock, preferred stock and convertible equity or debt without stockholder approval and without the requirement to offer rights of pre-emption to existing stockholders. Any such issuance could dilute our existing stockholders' interests.
Our charter authorizes our Board of Directors to issue additional shares of common stock, preferred stock and convertible equity or debt without stockholder approval and without the requirement to offer rights of pre-emption to existing stockholders. Any such issuance could dilute our existing stockholders' interests.
Specifically, our business, like other real estate businesses, is affected by the following conditions: • significant job losses or declining rates of job creation, which decrease demand for office space, causing market rental rates and property values to be negatively impacted; • the ability to borrow on terms and conditions that we find acceptable, which reduces our ability to pursue acquisition and development opportunities and refinance existing debt, reducing our returns from both our existing operations and our acquisition and development activities and increasing our future interest expense; and • reduced values of our properties, which limits our ability to dispose of assets at acceptable prices and to obtain debt financing secured by our properties. 14 Table of Contents Leasing office space to smaller and growth-oriented businesses could adversely affect our cash flow and results of operations.
Specifically, our business, like other real estate businesses, has been and may continue to be affected by the following conditions: • significant job losses or declining rates of job creation, which decrease demand for office space, causing market rental rates and property values to be negatively impacted; • the ability to borrow on terms and conditions that we find acceptable, which reduces our ability to pursue acquisition and development opportunities and refinance existing debt, reducing our returns from both our existing operations and our acquisition and development activities and increasing our future interest expense; and • reduced values of our properties, which limits our ability to dispose of assets at acceptable prices and to obtain debt financing secured by our properties. 14 Table of Contents Leasing office space to smaller and growth-oriented businesses could adversely affect our cash flow and results of operations.
The risk of a security breach or disruption, particularly through cyber attacks and intrusions, including by computer hackers, foreign governments and cyber terrorists, has generally increased as the number, intensity and sophistication of attempted attacks and instructions from around the world have increased.
The risk of a security breach or disruption, particularly through cyber attacks and intrusions, including by hackers, foreign governments and cyber terrorists, has generally increased as the number, intensity and sophistication of attempted attacks and intrusions from around the world have increased.
These restrictions could adversely affect operations (including reducing our flexibility and our ability to incur additional debt), our ability to pay debt obligations and our ability to pay dividends and distributions to security holders. 17 Table of Contents Rising interest rates could adversely affect our cash flow.
These restrictions could adversely affect operations (including reducing our flexibility and our ability to incur additional debt), our ability to pay debt obligations and our ability to pay dividends and distributions to security holders. 17 Table of Contents High interest rates could adversely affect our cash flow.
Foreclosure on mortgaged properties or an inability to make payments under our 2021 credit facility, 2022 term loan or our senior unsecured notes could trigger defaults under the terms of our other financings, making such financings at risk of being declared immediately payable, and would have a negative impact on our financial condition and results of operations.
Foreclosure on mortgaged properties or an inability to make payments under our 2021 credit facility or our senior unsecured notes could trigger defaults under the terms of our other financings, making such financings at risk of being declared immediately payable, and would have a negative impact on our financial condition and results of operations.
If we are unable to make payments under our 2021 credit facility and 2022 term loan, all amounts due and owing at such time shall accrue interest at a per annum rate equal to 2% higher than the rate applicable immediately prior to the default.
If we are unable to make payments under our 2021 credit facility, all amounts due and owing at such time shall accrue interest at a per annum rate equal to 2% higher than the rate applicable immediately prior to the default.
In addition, our 2021 credit facility, 2022 term loan and senior unsecured notes contain restrictions and requirements on our method of operations. Our 2021 credit facility and our unsecured notes also require us to maintain designated ratios, including but not limited to, total debt-to-assets, debt service coverage and unencumbered assets-to-unsecured debt.
In addition, our 2021 credit facility and senior unsecured notes contain restrictions and requirements on our method of operations. Our 2021 credit facility and our unsecured notes also require us to maintain designated ratios, including but not limited to, total debt-to-assets, debt service coverage and unencumbered assets-to-unsecured debt.
As of December 31, 2022, borrowings under our term loans and junior subordinated deferrable interest debentures totaled $1.7 billion and $100.0 million, respectively. We may incur indebtedness in the future that also bears interest at a variable rate or may be required to refinance our debt at higher rates.
As of December 31, 2023, borrowings under our term loans and junior subordinated deferrable interest debentures totaled $1.3 billion and $100.0 million, respectively. We may incur indebtedness in the future that also bears interest at a variable rate or may be required to refinance our debt at higher rates.
Substantially all of our assets are held through subsidiaries of our Operating Partnership. We are, therefore, dependent on the results of operations of our subsidiaries and their ability to provide us with cash, whether in the form of dividends paid through our Operating Partnership, loans or otherwise, to meet our obligations and to pay any dividends to our equity holders.
We are, therefore, dependent on the results of operations of our subsidiaries and their ability to provide us with cash, whether in the form of dividends paid through our Operating Partnership, loans or otherwise, to meet our obligations and to pay any dividends to our equity holders.
This limitation on ownership of stock could delay or prevent a change in control of our company. 20 Table of Contents Maryland takeover statutes may prevent a change of control of our company, which could depress our stock price.
This limitation on ownership of stock could delay or prevent a change in control of our company. Maryland takeover statutes may prevent a change of control of our company, which could depress our stock price.
Giving effect to leases in effect as of December 31, 2022 for consolidated properties and unconsolidated joint venture properties, as of that date, our five largest tenants, based on annualized cash rent, accounted for 14.1% of our share of Portfolio annualized cash rent, with one tenant, Paramount Global (formerly ViacomCBS Inc.), accounting for 5.4% of our share of Portfolio annualized cash rent.
Giving effect to leases in effect as of December 31, 2023 for consolidated properties and unconsolidated joint venture properties, as of that date, our five largest tenants, based on annualized cash rent, accounted for 15.4% of our share of Portfolio annualized cash rent, with one tenant, Paramount Global (formerly ViacomCBS Inc.), accounting for 5.9% of our share of Portfolio annualized cash rent.
Our joint ventures may also incur variable rate debt and face similar risks. Accordingly, increases in interest rates could adversely affect our results of operations and financial conditions and our ability to continue to pay dividends and distributions to security holders. The planned phasing out of LIBOR may affect our financial results.
Our joint ventures may also incur variable rate debt and face similar risks. Accordingly, increases in interest rates could adversely affect our results of operations and financial conditions and our ability to continue to pay dividends and distributions to security holders.
We may not be able to refinance existing indebtedness, which may require substantial principal payments at maturity. $260.1 million of consolidated mortgage debt and $1.1 billion of unconsolidated joint venture debt is scheduled to mature in 2023 after giving effect to our as-of-right extension options and repayments and refinancing of consolidated and joint venture debt between December 31, 2022 and February 15, 2023 as discussed in the "Financial Statements and Supplementary Data" section.
We may not be able to refinance existing indebtedness, which may require substantial principal payments at maturity. $382.8 million of consolidated mortgage debt and $1.6 billion of unconsolidated joint venture debt is scheduled to mature in 2024 after giving effect to our as-of-right extension options and repayments and refinancing of consolidated and joint venture debt between December 31, 2023 and February 22, 2024 as discussed in the "Financial Statements and Supplementary Data" section.
A loss of the services of either of these individuals could adversely affect our operations and could be negatively perceived by the market resulting in a decrease in our stock price. 23 Table of Contents Our business and operations would suffer in the event of system failures or cyber security attacks.
Holliday's services could adversely affect our operations and could be negatively perceived by the market resulting in a decrease in our stock price. 23 Table of Contents Our business and operations would suffer in the event of system failures or cyber security attacks.
The total principal amount of our outstanding consolidated indebtedness was $5.6 billion as of December 31, 2022, consisting of $1.7 billion in unsecured bank term loans, $0.1 billion under our senior unsecured notes, $0.1 billion of junior subordinated deferrable interest debentures, $3.2 billion of non-recourse mortgages and loans payable on certain of our properties and debt and preferred equity investments, $450.0 million drawn under our revolving credit facility, and $2.0 million of outstanding letters of credit.
The total principal amount of our outstanding consolidated indebtedness was $3.5 billion as of December 31, 2023, consisting of $1.3 billion in unsecured bank term loans, $0.1 billion under our senior unsecured notes, $0.1 billion of junior subordinated deferrable interest debentures, $1.5 billion of non-recourse mortgages and loans payable on certain of our properties and debt and preferred equity investments and $560.0 million drawn under our revolving credit facility.
Contractual provisions that limit the assumption of certain of our debt may prevent a change in control. Certain of our consolidated debt is not assumable and may be subject to significant prepayment penalties.
Contractual provisions that limit the assumption of certain of our debt may prevent a change in control. Certain of our consolidated debt is not assumable and may be subject to significant prepayment penalties. These limitations could deter a change in control of our company.
Advances under our 2021 credit facility, 2022 term loan and certain property-level mortgage debt bear interest at a variable rate. After giving effect to derivatives, our consolidated variable rate borrowings totaled $0.5 billion as of December 31, 2022.
Advances under our 2021 credit facility and certain property-level mortgage debt bear interest at a variable rate. After giving effect to derivatives, our consolidated variable rate borrowings totaled $0.3 billion as of December 31, 2023.
We need a substantial amount of capital to operate and grow our business. This need is exacerbated by the distribution requirements imposed on us for SL Green to qualify as a REIT. We therefore rely on third-party sources of capital, which may not be available on favorable terms or at all.
This need is exacerbated by the distribution requirements imposed on us for SL Green to qualify as a REIT. We therefore rely on third-party sources of capital, which may not be available on favorable terms or at all.
Our business has been affected by the ongoing volatility in the U.S. financial and credit markets and other market, economic, or political challenges experienced by the U.S. economy or the real estate industry as a whole, including changes in law and policy and uncertainty in connection with any such changes.
Our business has been and may continue to be affected by the ongoing volatility in the U.S. financial and credit markets and higher interest rate environments and other market, economic, or political challenges experienced by the U.S. economy or the real estate industry as a whole, including changes in law and policy and uncertainty in connection with any such changes.
As of December 31, 2022, we had an aggregate cost basis in joint ventures totaling $3.2 billion. Certain of our joint venture agreements contain terms in favor of our partners that could have an adverse effect on the value of our investments in the joint ventures.
As of December 31, 2023, we had an aggregate carrying value in joint ventures totaling $3.0 billion. Certain of our joint venture agreements contain terms in favor of our partners that could have an adverse effect on the value of our investments in the joint ventures.
As of December 31, 2022, a hypothetical 100 basis point increase in interest rates across each of our variable interest rate instruments, including our variable rate debt and preferred equity investments which mitigate our exposure to interest rate changes, would increase our net annual interest costs by $3.5 million and would increase our share of joint venture annual interest costs by $6.5 million.
As of December 31, 2023, a hypothetical 100 basis point increase in interest rates across each of our variable interest rate instruments, including our variable rate debt and preferred equity investments which mitigate our exposure to interest rate changes, would increase our net annual interest costs by $1.0 million and would increase our share of joint venture annual interest costs by $12.2 million.
We may be unable to renew leases or relet space as leases expire. If tenants decide not to renew their leases upon expiration, we may not be able to relet the space.
If tenants decide not to renew their leases upon expiration, we may not be able to relet the space.
Annualized cash rents, including our share of joint venture annualized cash rents, from properties held through long-term leases or operating sublease interests as of December 31, 2022 totaled $258.2 million, or 18.3%, of our share of total Portfolio annualized cash rent.
Annualized cash rents, including our share of joint venture annualized cash rents, from properties held through long-term leases or operating sublease interests as of December 31, 2023 totaled $249.7 million, or 18.7%, of our share of total Portfolio annualized cash rent.
Any compromise of our security could also result in a violation of applicable privacy and other laws, significant legal and financial exposure, damage to our reputation, loss or misuse of the information (which may be confidential, proprietary and/or commercially sensitive in nature) and a loss of confidence in our security measures, which could harm our business.
Any compromise of our security could also result in a violation of applicable privacy and other laws, significant legal and financial exposure, damage to our reputation and relationships with tenants and vendors, loss or misappropriation of data (which may be confidential, proprietary and/or commercially sensitive in nature) and a loss of confidence in our security measures, which could harm our business.
Our systems are critical to the operation of our business and any system failure, accident or security breach that causes interruptions in our operations could result in a material disruption to our business. We may also incur additional costs to remedy damages caused by such disruptions.
Our systems are critical to the operation of our business, as well as certain of our tenants, and a system failure, accident or security breach could result in a material disruption to our business and operations. We have and may also incur additional costs to remedy damages caused by such disruptions.
The continuation or further increase to remote work policies and flexible work arrangements may cause office tenants to reassess their long-term physical needs, which would have an adverse effect on our business, results of operations, liquidity, cash flows, prospects, and our ability to achieve forward-looking targets and expectations.
The continuation or expansion of remote work policies and flexible work arrangements may cause office tenants to reassess their long-term physical needs, which would have an adverse effect on our business, results of operations, liquidity, cash flows, prospects, and our ability to achieve forward-looking targets and expectations. We may be unable to renew leases or relet space as leases expire.
Cash flow could be insufficient to meet the payments of principal and interest required under our current mortgages, our 2021 credit facility, 2022 term loan, our senior unsecured notes, our debentures and indebtedness outstanding at our joint venture properties.
Scheduled debt payments could adversely affect our results of operations. Cash flow could be insufficient to meet the payments of principal and interest required under our current mortgages, our 2021 credit facility, our senior unsecured notes, our debentures and indebtedness outstanding at our joint venture properties.
For example, our partner may be entitled to a specified portion of the profits of the joint venture before we are entitled to any portion of such profits. We may also enter into similar arrangements in the future. 19 Table of Contents We are dependent on external sources of capital.
For example, our partner may be entitled to a specified portion of the profits of the joint venture before we are entitled to any portion of such profits. We may also enter into similar arrangements in the future. We are dependent on external sources of capital. We need a substantial amount of capital to operate and grow our business.
Any of these direct or indirect effects of climate change may have a material adverse effect on our properties, operations or business. We may incur significant costs to comply with climate change initiatives, and in particular those implemented in New York City. Numerous states and municipalities have adopted laws and policies on climate change and emission reduction targets.
Any of these direct or indirect effects of climate change may have a material adverse effect on our properties, operations or business. 16 Table of Contents We may incur significant costs to comply with climate change initiatives, and in particular those implemented in New York City.
Any changes that increase our leverage could be viewed negatively by investors and could have a material effect on our financial condition, results of operations, cash flows, the trading price of our securities and our ability to pay dividends and distributions to security holders. 18 Table of Contents A downgrade in our credit ratings could materially adversely affect our business and financial condition.
Any changes that increase our leverage could be viewed negatively by investors and could have a material effect on our financial condition, results of operations, cash flows, the trading price of our securities and our ability to pay dividends and distributions to security holders. 18 Table of Contents Debt and preferred equity investments could cause us to incur expenses, which could adversely affect our results of operations.
In particular, through the Climate Leadership and Community Protection Act signed into law in 2019, New York State mandated the adoption of a net-zero carbon economy statewide by 2050, with a zero-carbon electricity grid by 2040.
Numerous states and municipalities have adopted laws and policies on climate change and emission reduction targets. In particular, through the Climate Leadership and Community Protection Act signed into law in 2019, New York State mandated the adoption of a net-zero carbon economy statewide by 2050, with a zero-carbon electricity grid by 2040.
Five of our properties, One Vanderbilt Avenue, 245 Park Avenue, 11 Madison Avenue, 420 Lexington Avenue, and 1515 Broadway accounted for 40.0% of our Portfolio annualized cash rent, which includes our share of joint venture annualized cash rent, as of December 31, 2022.
Five of our properties, One Vanderbilt Avenue, 11 Madison Avenue, 420 Lexington Avenue, 1515 Broadway and 1185 Avenue of the Americas accounted for 38.9% of our Portfolio annualized cash rent, which includes our share of joint venture annualized cash rent, as of December 31, 2023.
In addition, we could increase the amount of our outstanding consolidated indebtedness in the future, in part by borrowing under the revolving credit facility portion of our 2021 credit facility. As of December 31, 2022, the total principal amount of non-recourse indebtedness outstanding at the joint venture properties was $12.5 billion, of which our proportionate share was $6.2 billion.
In addition, we could increase the amount of our outstanding consolidated indebtedness in the future, in part by borrowing under the revolving credit facility. As of December 31, 2023, the total principal amount of indebtedness outstanding at the joint venture properties was $14.9 billion, of which our proportionate share was $7.4 billion.
Borrowers may contest enforcement of foreclosure or other remedies, seek bankruptcy protection against such enforcement and/or bring claims for lender liability in response to actions to enforce their obligations to us.
In the event of a default under these obligations, we may take possession of the collateral securing these interests. Borrowers may contest enforcement of foreclosure or other remedies, seek bankruptcy protection against such enforcement and/or bring claims for lender liability in response to actions to enforce their obligations to us.
Despite system redundancy, the implementation of security measures and the existence of a disaster recovery plan for our internal information technology systems, our systems are vulnerable to a number of risks including energy blackouts, natural disasters, terrorism, war, telecommunication failures and cyber attacks and intrusions, such as computer viruses, malware, attachments to e-mails, intrusion and unauthorized access, including from persons inside our organization or from persons outside our organization with access to our systems.
Despite system redundancy, the implementation of security measures and the preparation of a disaster data recovery plan, our internal information technology (“IT”) networks and third-party systems on which we rely are vulnerable to a number of risks including energy blackouts, natural disasters, terrorism, war, telecommunication failures and cyber attacks and intrusions, such as phishing attacks, ransomware, data breaches and unauthorized access, including from persons inside our organization or from persons outside our organization with access to our systems.
Borrowings under our revolving credit facility and three term loans bore interest at the adjusted term SOFR plus 10 basis points, and the applicable spreads of 105 basis points, 120 basis points, 125 basis points, and 140 basis points, respectively, as of December 31, 2022.
Borrowings under our revolving credit facility and two term loans bore interest at the adjusted term Secured Overnight Financing Rate ("SOFR") plus 10 basis points, and the applicable spreads of 140 basis points, 160 basis points, and 165 basis points, respectively, as of December 31, 2023.
As of December 31, 2022, approximately 40.8% of the rentable square feet at our consolidated properties and approximately 23.5% of the rentable square feet at our unconsolidated joint venture properties are scheduled to expire by December 31, 2027. As of December 31, 2022, these leases had annualized escalated rent totaling $305.2 million and $438.1 million, respectively.
As of December 31, 2023, approximately 44.1% of the rentable square feet at our consolidated properties and approximately 20.6% of the rentable square feet at our unconsolidated joint venture properties are scheduled to expire by December 31, 2028. As of December 31, 2023, these leases had annualized escalated rent totaling $265.5 million and $384.0 million, respectively.
While only 3.5% of our Portfolio annualized cash rent is generated by retail properties, principally in Manhattan, we are subject to risks that affect the retail environment generally, including the level of consumer spending and preferences, consumer confidence, electronic retail competition, levels of tourism in Manhattan, and governmental measures aimed at slowing the spread of COVID-19.
While only 4.7% of our Portfolio annualized cash rent was generated by retail properties as of December 31, 2023, principally in Manhattan, we are subject to risks that affect the retail environment generally, including the level of consumer spending and preferences, consumer confidence, electronic retail competition and levels of tourism in Manhattan.
We are also required to distribute to stockholders at least 90% of our REIT taxable income excluding capital gains. The fact that we hold our assets through the Operating Partnership and its subsidiaries further complicates the application of the REIT requirements. Even a technical or inadvertent mistake could jeopardize our REIT status.
The fact that we hold our assets through the Operating Partnership and its subsidiaries further complicates the application of the REIT requirements. Even a technical or inadvertent mistake could jeopardize our REIT status.
An interested stockholder is defined as: • any person who beneficially owns 10% or more of the voting power of the corporation's outstanding voting stock; or • an affiliate or associate of the corporation who, at any time within the two year period prior to the date in question, was the beneficial owner of 10% or more of the voting power of the then outstanding voting stock of the corporation.
An interested stockholder is defined as: • any person who beneficially owns 10% or more of the voting power of the corporation's outstanding voting stock; or • an affiliate or associate of the corporation who, at any time within the two year period prior to the date in question, was the beneficial owner of 10% or more of the voting power of the then outstanding voting stock of the corporation. 20 Table of Contents A person is not an interested stockholder under the statute if the board of directors approves in advance the transaction by which he otherwise would have become an interested stockholder.
In addition, these arrangements may not be effective in reducing our exposure to interest rate changes. When existing interest rate hedges terminate, we may incur increased costs in putting in place further interest rate hedges. Failure to hedge effectively against interest rate changes may adversely affect our results of operations. Increases in our leverage could adversely affect our stock price.
When existing interest rate hedges terminate, we may incur increased costs in putting in place further interest rate hedges. Failure to hedge effectively against interest rate changes may adversely affect our results of operations. Increases in our leverage could adversely affect our stock price. Our organizational documents do not contain any limitation on the amount of indebtedness we may incur.
As a result, the value of our properties and our results of operations could materially decline. We face possible risks associated with the natural disasters and the effects of climate change.
As a result, the value of our properties and our results of operations could materially decline. We face possible risks associated with the natural disasters and the effects of climate change. We are committed to enhancing the resilience of our properties and we have established comprehensive procedures to effectively manage and respond to climate-related risks.
If SL Green fails to qualify as a REIT, the funds available for distribution to our stockholders would be substantially reduced as we would not be allowed a deduction for dividends paid to our stockholders in computing our taxable income and would be subject to federal income tax at regular corporate rates and possibly increased state and local taxes.
If SL Green fails to qualify as a REIT, the funds available for distribution to our stockholders would be substantially reduced as we would not be allowed a deduction for dividends paid to our stockholders in computing our taxable income and would be subject to federal income tax at regular corporate rates and possibly increased state and local taxes. 21 Table of Contents Also, unless the IRS grants us relief under specific statutory provisions, SL Green would remain disqualified as a REIT for four years following the year in which SL Green first failed to qualify.
An increase in the assessed value of our properties or our property tax rates could adversely impact our financial condition, results of operations and our ability to satisfy our debt service obligations and to pay dividends and distributions to our security holders.
An increase in the assessed value of our properties or our property tax rates could adversely impact our financial condition, results of operations and our ability to satisfy our debt service obligations and to pay dividends and distributions to our security holders. 22 Table of Contents GENERAL RISK FACTORS The trading price of our common stock has been and may continue to be subject to wide fluctuations.
Climate change may also have indirect effects on our business by increasing the cost of (or making unavailable) property insurance on terms we find acceptable, increasing the cost of energy at our properties and requiring us to expend funds as we seek to repair and protect our properties against such risks.
Climate change may also have indirect effects on our business by increasing the cost of property insurance on terms we find acceptable or causing a lack of availability of sufficient insurance. There could also be increases in the cost of energy and other natural resources at our properties as we seek to repair and protect our properties against climate risks.
Loss of our key personnel could harm our operations and our stock price. We are dependent on the efforts of Marc Holliday, our chairman and chief executive officer, and Andrew W. Mathias, our president. These officers have employment agreements which expire in January 2025 and December 2023, respectively.
Loss of key personnel could harm our operations and our stock price. We are dependent on the efforts of Marc Holliday, our chairman, chief executive officer and interim president. Mr. Holliday has an employment agreement which expires in January 2025. A loss of Mr.
If our efforts to comply with new or changed laws, regulations and standards differ from the activities intended by regulatory or governing bodies due to ambiguities related to practice, our reputation may be harmed. 22 Table of Contents Our efforts to comply with evolving laws, regulations and standards have resulted in, and are likely to continue to result in, increased general and administrative expenses and a diversion of management time and attention from revenue-generating activities to compliance activities.
Our efforts to comply with evolving laws, regulations and standards have resulted in, and are likely to continue to result in, increased general and administrative expenses and a diversion of management time and attention from revenue-generating activities to compliance activities.
At any time, conditions may exist which effectively prevent us, or REITs in general, from accessing these markets. Moreover, additional equity offerings may result in substantial dilution of our stockholders' interests, and additional debt financing may substantially increase our leverage. RISKS RELATED TO OUR ORGANIZATION AND STRUCTURE We depend on dividends and distributions from our direct and indirect subsidiaries.
Moreover, additional equity offerings may result in substantial dilution of our stockholders' interests, and additional debt financing may substantially increase our leverage. 19 Table of Contents RISKS RELATED TO OUR ORGANIZATION AND STRUCTURE We depend on dividends and distributions from our direct and indirect subsidiaries. Substantially all of our assets are held through subsidiaries of our Operating Partnership.
These matters, some of which are not totally within our control, can affect SL Green's qualification as a REIT. For example, to qualify as a REIT, at least 95% of our gross income must come from designated sources that are listed in the applicable tax laws.
For example, to qualify as a REIT, at least 95% of our gross income must come from designated sources that are listed in the applicable tax laws. We are also required to distribute to stockholders at least 90% of our REIT taxable income excluding capital gains.
As a result, the amount of interest we may pay on our credit facilities is difficult to predict. Failure to hedge effectively against interest rate changes may adversely affect results of operations. The interest rate hedge instruments we use to manage some of our exposure to interest rate volatility involve risk and counterparties may fail to perform under these arrangements.
The interest rate hedge instruments we use to manage some of our exposure to interest rate volatility involve risk and counterparties may fail to perform under these arrangements. In addition, these arrangements may not be effective in reducing our exposure to interest rate changes.
Over time, these conditions could result in declining demand for office space in our buildings or our inability to operate the buildings at all.
Over time, and in an extreme scenario, these conditions could potentially result in declining demand for office space, specifically in coastal areas of New York City, or potentially an inability to fully operate buildings.
RISKS RELATED TO OUR LIQUIDITY AND CAPITAL RESOURCES Debt financing, financial covenants, degree of leverage, and increases in interest rates could adversely affect our economic performance. Scheduled debt payments could adversely affect our results of operations.
Additionally, even if we can achieve compliance under LL97 in a given year, it is not a certainty that we will remain in compliance in subsequent years. RISKS RELATED TO OUR LIQUIDITY AND CAPITAL RESOURCES Debt financing, financial covenants, degree of leverage, and increases in interest rates could adversely affect our economic performance.
These limitations could deter a change in control of our company. 21 Table of Contents SL Green's failure to qualify as a REIT would be costly and would have a significant effect on the value of our securities.
SL Green's failure to qualify as a REIT would be costly and would have a significant effect on the value of our securities. We believe we have operated in a manner for SL Green to qualify as a REIT for federal income tax purposes and intend to continue to so operate.
As our portfolio is principally located in Manhattan, our business is subject to transition risks related to these climate change policies. If we are unable to meet the required emissions reductions, we may be subject to material fines that will continue to be assessed each year we fail to comply.
If we are unable to meet the required emissions reductions, we may be subject to material fines that will continue to be assessed each year we fail to comply. Based on current emissions data available from 2022, our portfolio is expected to be compliant through 2024, with no material financial impact to our properties.
GENERAL RISK FACTORS The trading price of our common stock has been and may continue to be subject to wide fluctuations. Between January 1, 2022 and December 31, 2022, the closing sale price of our common stock on the New York Stock Exchange, or the NYSE, ranged from $32.94 to $83.95 per share.
Between January 1, 2023 and December 31, 2023, the closing sale price of our common stock on the New York Stock Exchange, or the NYSE, ranged from $19.96 to $48.00 per share. Our stock price may fluctuate in response to a number of events and factors, such as those described elsewhere in this "Risk Factors" section.
We believe we have operated in a manner for SL Green to qualify as a REIT for federal income tax purposes and intend to continue to so operate. Many of the REIT compliance requirements, however, are highly technical and complex. The determination that SL Green is a REIT requires an analysis of factual matters and circumstances.
Many of the REIT compliance requirements, however, are highly technical and complex. The determination that SL Green is a REIT requires an analysis of factual matters and circumstances. These matters, some of which are not totally within our control, can affect SL Green's qualification as a REIT.
Our stock price may fluctuate in response to a number of events and factors, such as those described elsewhere in this "Risk Factors" section. Equity issuances or buybacks by us or the perception that such issuances or buybacks may occur may also affect the market price of our common stock.
Equity issuances or buybacks by us or the perception that such issuances or buybacks may occur may also affect the market price of our common stock. Future issuances of common stock, preferred stock or convertible debt could dilute existing stockholders' interests.
Debt and preferred equity investments could cause us to incur expenses, which could adversely affect our results of operations. We held first mortgages, mezzanine loans, junior participations and preferred equity interests with an aggregate net book value of $623.3 million as of December 31, 2022.
We held first mortgages, mezzanine loans, junior participations and preferred equity interests with an aggregate net book value of $346.7 million as of December 31, 2023. Some of these instruments may have some recourse to their sponsors, while others are limited to the collateral securing the loan.
Removed
We are subject to risks associated with natural disasters and the effects of climate change, which can include storms, hurricanes and flooding, any of which could have a material adverse effect on our properties, operations and business. To the extent climate change causes changes in weather patterns, our markets could experience increases in storm intensity and rising sea-levels.
Added
Our procedures encompass a range of potential impacts, including those stemming from natural disasters such as storms, heatwaves, hurricanes, flooding, and other severe weather. We recognize that the intensity of weather events and the rise in sea levels have the potential to impact our properties, operations, and overall business.
Removed
Additionally, even if we can achieve compliance under LL97 in a given year, it is not a certainty that we will remain in compliance in subsequent years. And, costs of compliance or penalties may be significant. 16 Table of Contents We face potential conflicts of interest. There are potential conflicts of interest between us and Stephen L. Green.
Added
Since Hurricane Sandy in 2012, New York City has experienced several severe storms that have had significant impacts on the area, and we are actively tracking the risks these storms pose to the city’s real estate market and physical landscape.
Removed
There is a potential conflict of interest relating to the disposition of certain property contributed to us by Stephen L. Green and affiliated entities in our initial public offering. Mr. Green serves as a member and as the chairman emeritus of our Board of Directors.
Added
We proactively review every building through both a financial and environmental lens to ensure that building systems and operations align with our climate-related risk assessments.
Removed
If we sell a property in a transaction in which a taxable gain is recognized, for tax purposes the built-in gain would be allocated solely to him and not to us. As a result, Mr. Green has a conflict of interest if the sale of a property he contributed is in our best interest but not his. In addition, Mr.
Added
As our portfolio is principally located in Manhattan, our business is subject to transition risks related to these climate change policies. Costs of compliance or penalties in later compliance periods may be significant.
Removed
Green's tax basis includes his share of debt, including mortgage indebtedness, owed by the Operating Partnership. If the Operating Partnership were to retire such debt, then he would experience a decrease in his share of liabilities, which, for tax purposes, would be treated as a distribution of cash to him.
Added
The level of SOFR during the term of our existing term loan and revolving credit facilities may bear little or no relation to the historical level of SOFR.
Removed
To the extent the deemed distribution of cash exceeded his tax basis, he would recognize gain. As a result, Mr. Green has a conflict of interest if the refinancing of indebtedness is in our best interest but not his.
Added
The future performance of SOFR is impossible to reliably predict, and, therefore, no future performance under our existing term loan and revolving credit facilities as it relates to SOFR may be inferred from historical performance.
Removed
As of December 31, 2022, we had no recourse indebtedness outstanding at our unconsolidated joint venture properties.
Added
Since the initial publication of SOFR, daily changes in SOFR have, on occasion, been more volatile than daily changes in comparable benchmark or market rates, and SOFR over the term of our existing term loan and revolving credit facilities may bear little or no relation to the historical actual or historical indicative data.
Removed
In March 2021, ICE Benchmark Administration, the administrator of LIBOR, with the support of the Federal Reserve Board and the FCA, announced plans to extend the publication of certain USD LIBOR settings until June 30, 2023 after which LIBOR reference rates will cease to be provided.
Added
Changes in the levels of SOFR will affect the amount of interest we pay on our existing credit facilities. Additionally, there can be no assurance that SOFR will gain long-term market acceptance.
Removed
It is not possible to predict the effect of these changes or the establishment of alternative reference rates. The Alternative Reference Rate Committee ("ARRC"), a committee convened by the Federal Reserve that includes major market participants, and on which the SEC staff and other regulators participate, has proposed an alternative rate, the Secured Overnight Financing Rate (“SOFR”), to replace U.S.

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Item 2. Properties

Properties — owned and leased real estate

14 edited+5 added−8 removed5 unchanged
Biggest changeIn addition, we manage one office building owned by third parties encompassing approximately 0.3 million square feet and held debt and preferred equity investments with a book value of $623.3 million, excluding $8.5 million of investments recorded in balance sheet line items other than the Debt and preferred equity investments line item. 25 Table of Contents The following tables set forth certain information with respect to each of the Manhattan and Suburban office, prime retail, residential, development and redevelopment properties in the portfolio as of December 31, 2022 (dollars in thousands): Manhattan Properties Year Built/ Renovated City/ Town Approximate Rentable Square Feet Percent Occupied (1) Annualized Cash Rent (2) Percent of Portfolio Annualized Cash Rent (3) Number of Tenants Annualized Cash Rent per Leased Square Foot (4) CONSOLIDATED OFFICE PROPERTIES "Same Store" 100 Church Street 1959/2010 Downtown 1,047,500 90.3% $ 45,818 3.6% 18 $ 45.38 110 Greene Street 1908/1920 Soho 223,600 86.1 16,452 1.3 53 90.60 125 Park Avenue 1923/2006 Grand Central 604,245 95.7 45,962 3.6 25 74.43 304 Park Avenue South 1930 Midtown South 215,000 100.0 18,231 1.4 7 84.20 420 Lexington Ave (Graybar) 1927/1999 Grand Central North 1,188,000 85.0 80,559 6.3 169 64.67 461 Fifth Avenue 1988 Midtown 200,000 77.1 14,311 1.1 13 89.09 485 Lexington Avenue 1956/2006 Grand Central North 921,000 76.6 47,744 3.7 27 68.20 555 West 57th Street 1971 Midtown West 941,000 96.8 53,847 4.2 9 52.41 711 Third Avenue (5) 1955 Grand Central North 524,000 94.7 35,735 2.8 22 64.88 810 Seventh Avenue 1970 Times Square 692,000 86.5 42,664 3.3 42 74.16 1185 Avenue of the Americas 1969 Rockefeller Center 1,062,000 69.3 65,087 5.1 12 84.36 1350 Avenue of the Americas 1966 Rockefeller Center 562,000 88.1 40,301 3.2 44 82.07 Subtotal / Weighted Average 8,180,345 86.0% $ 506,711 39.6% 441 "Non Same Store" 245 Park Avenue 1966 Park Avenue 1,782,793 83.9% $ 127,442 10.0% 17 $ 91.18 Subtotal / Weighted Average 1,782,793 83.9% $ 127,442 10.0% 17 Total / Weighted Average Manhattan Consolidated Office Properties 9,963,138 85.7% $ 634,153 49.6% 458 $ 70.89 UNCONSOLIDATED OFFICE PROPERTIES "Same Store" 2 Herald Square—51.00% 1909 Herald Square 369,000 84.6% $ 30,952 1.2% 5 $ 97.28 10 East 53rd Street—55.00% 1972/2014 Plaza District 354,300 96.0 31,717 1.4 39 86.24 11 Madison Avenue—60.00% 1929 Park Avenue South 2,314,000 96.4 166,939 7.8 9 75.84 100 Park Avenue—50.00% 1950/1980 Grand Central South 834,000 84.2 60,820 2.4 36 81.88 280 Park Avenue—50.00% 1961 Park Avenue 1,219,158 95.9 130,909 5.1 38 106.88 800 Third Avenue—60.50% 1972/2006 Grand Central North 526,000 84.2 35,896 1.7 37 76.03 919 Third Avenue—51.00% 1970 Grand Central North 1,454,000 99.9 114,175 4.6 8 73.13 1515 Broadway—56.90% 1972 Times Square 1,750,000 99.7 131,316 5.8 7 73.68 Worldwide Plaza—25.00% 1989/2013 Westside 2,048,725 91.7 143,914 2.8 21 82.42 Subtotal / Weighted Average 10,869,183 94.5% $ 846,638 32.8% 200 "Non Same Store" One Vanderbilt Avenue—71.01% 2020 Grand Central 1,657,198 96.8% $ 254,573 14.1% 38 $ 161.83 220 East 42nd Street—51.00% 1929 Grand Central 1,135,000 92.6% 70,233 2.8 36 63.71 450 Park Avenue—25.10% 1972 Park Avenue 337,000 79.8 33,545 0.7 22 133.18 Subtotal / Weighted Average 3,129,198 93.4% $ 358,351 17.6% 96 Total / Weighted Average Unconsolidated Office Properties 13,998,381 94.3% $ 1,204,989 50.4% 296 $ 90.30 Manhattan Office Grand Total / Weighted Average 23,961,519 90.7% $ 1,839,142 100.0% 754 Manhattan Office Grand Total—SLG share of Annualized Rent $ 1,278,993 100.0% Manhattan Office Same Store Occupancy %—Combined 19,049,528 90.9% 26 Table of Contents Suburban Properties Year Built/ Renovated City/ Town Approximate Rentable Square Feet Percent Occupied (1) Annualized Cash Rent (2) Percent of Portfolio Annualized Cash Rent (3) Number of Tenants Annualized Cash Rent per Leased Square Foot (4) CONSOLIDATED OFFICE PROPERTIES "Same Store" Connecticut Landmark Square 1973-1984 Stamford 862,800 79.3% $ 19,560 100.0% 107 $ 34.44 Connecticut Subtotal/Weighted Average 862,800 79.3% $ 19,560 100.0% 107 Total / Weighted Average Consolidated Office Properties 862,800 79.3% $ 19,560 100.0% 107 Suburban Grand Total / Weighted Average 862,800 79.3% $ 19,560 107 Suburban Office Grand Total—SLG share of Annualized Rent $ 19,560 100.0% Suburban Office Same Store Occupancy %—Combined 862,800 79.3% Year Built/ Renovated City/ Town Approximate Rentable Square Feet Percent Occupied (1) Annualized Cash Rent (2) Percent of Portfolio Annualized Cash Rent (3) Number of Tenants Annualized Cash Rent per Leased Square Foot (4) PRIME RETAIL "Same Store" Prime Retail 11 West 34th Street—30.00% 1920/2010 Herald Square/Penn Station 17,150 100.0% $ 3,362 2.1% 1 $ 301.56 21 East 66th Street—32.28% 1921 Plaza District 13,069 100.0 2,149 1.4 1 353.81 115 Spring Street— 51.00% 1900 Soho 5,218 100.0 3,887 4.1 1 744.84 121 Greene Street—50.00% 1887 Soho 7,131 100.0 1,430 1.5 2 200.53 650 Fifth Avenue— 50.00% 1977-1978 Plaza District 69,214 100.0 38,256 39.2 1 552.72 717 Fifth Avenue—10.92% 1958/2000 Midtown/Plaza District 119,550 90.4 50,649 11.3 5 451.21 719 Seventh Avenue—75.00% 1927 Times Square 10,040 — — — — — 1552-1560 Broadway—50.00% 1926/2014 Times Square 57,718 88.3 29,885 30.6 3 662.44 Added to Same Store in 2022 85 Fifth Avenue—36.30% 1901/1979 Midtown South 12,946 100.0 2,100 1.6 1 160.40 Subtotal/Weighted Average 312,036 90.9% $ 131,718 91.8% 15 "Non Same Store" Prime Retail 690 Madison Avenue—100.00% 1879/1996/2009 Plaza District 7,848 100.0% $ 4,000 8.2% 1 $ 509.68 Subtotal/Weighted Average 7,848 100.0% $ 4,000 8.2% 1 Total / Weighted Average Prime Retail Properties 319,884 91.2% $ 135,718 100.0% 16 DEVELOPMENT/REDEVELOPMENT 5 Times Square 2002 Times Square 1,127,931 22.5% $ 24,824 15.3% 2 $ 96.87 19 East 65th Street 1928-1940 Plaza District 14,639 5.5 32 0.1 1 40.22 185 Broadway 2021 Lower Manhattan 50,206 25.9 3,220 6.3 3 263.19 625 Madison Avenue 1956/2002 Plaza District 563,000 18.1 13,180 25.7 17 129.52 750 Third Avenue 1958/2006 Grand Central North 780,000 24.0 13,251 25.8 22 62.42 885 Third Avenue 1986/2006 Midtown / Plaza District 218,796 76.5 13,752 26.8 13 82.67 15 Beekman—20.00% (6) N/A Lower Manhattan 221,884 N/A N/A N/A N/A — One Madison Avenue—25.50% (7) N/A Midtown South 1,396,426 N/A N/A N/A N/A — 760 Madison 1996/2012 Plaza District 58,574 N/A N/A N/A N/A — Total / Weighted Average Development/Redevelopment Properties 4,431,456 26.3% $ 68,259 100.0% 58 27 Table of Contents City/ Town Useable Sq.
Biggest changeThe following tables set forth certain information with respect to each of the Manhattan and Suburban office, prime retail, residential, development and redevelopment properties in the portfolio as of December 31, 2023 (dollars in thousands): Properties Ownership Interest (%) SubMarket Square Feet (1) % Occupied (2) % Leased (3) Annualized Contractual Cash Rent ($'s) Annualized Contractual Cash Rent SLG Share ($'s) Total Tenants MANHATTAN CONSOLIDATED OFFICE PROPERTIES "Same Store" 100 Church Street 100.0 Downtown 1,047,500 90.3 92.9 $ 47,097 $ 47,097 18 110 Greene Street 100.0 Soho 223,600 89.7 90.3 17,966 17,966 55 125 Park Avenue 100.0 Grand Central 604,245 99.3 99.3 48,039 48,039 24 304 Park Avenue South 100.0 Midtown South 215,000 100.0 100.0 18,547 18,547 7 420 Lexington Ave (Graybar) 100.0 Grand Central North 1,188,000 86.6 87.3 81,510 81,510 167 461 Fifth Avenue 100.0 Midtown 200,000 76.0 76.0 13,949 13,949 13 485 Lexington Avenue 100.0 Grand Central North 921,000 73.9 76.3 46,469 46,469 27 555 West 57th Street 100.0 Midtown West 941,000 97.8 97.8 55,679 55,679 10 711 Third Avenue 100.0 (3) Grand Central North 524,000 95.3 95.3 34,953 34,953 21 810 Seventh Avenue 100.0 Times Square 692,000 81.3 82.0 40,523 40,523 40 1185 Avenue of the Americas 100.0 Rockefeller Center 1,062,000 70.7 74.4 67,582 67,582 12 1350 Avenue of the Americas 100.0 Rockefeller Center 562,000 72.0 75.2 32,790 32,790 43 Subtotal / Weighted Average 8,180,345 85.1% 86.6% $ 505,104 $ 505,104 437 "Non Same Store" 885 Third Avenue 100.0 Midtown/Plaza District 218,796 81.3 81.3 $ 11,612 $ 11,612 12 Subtotal / Weighted Average 218,796 81.3% 81.3% $ 11,612 $ 11,612 12 Total / Weighted Average Manhattan Consolidated Office Properties 8,399,141 85.0% 86.4% $ 516,716 $ 516,716 449 MANHATTAN UNCONSOLIDATED OFFICE PROPERTIES "Same Store" 10 East 53rd Street 55.0 Plaza District 354,300 98.1 98.1 $ 33,529 $ 18,441 40 11 Madison Avenue 60.0 Park Avenue South 2,314,000 96.2 96.2 168,090 100,854 9 100 Park Avenue 50.0 Grand Central South 834,000 77.4 77.4 55,913 27,956 36 280 Park Avenue 50.0 Park Avenue 1,219,158 94.1 94.1 134,037 67,019 37 800 Third Avenue 60.5 Grand Central North 526,000 78.8 83.4 31,670 19,161 38 919 Third Avenue 51.0 Grand Central North 1,454,000 80.0 80.0 83,623 42,648 9 1515 Broadway 56.9 Times Square 1,750,000 99.7 99.7 136,705 77,785 7 Worldwide Plaza (4) 25.0 Westside 2,048,725 91.8 91.8 146,260 36,491 22 Added to Same Store in 2023 One Vanderbilt Avenue 71.0 Grand Central 1,657,198 97.8 99.4 272,560 193,545 39 220 East 42nd Street 51.0 Grand Central 1,135,000 88.4 88.4 67,721 34,538 31 Subtotal / Weighted Average 13,292,381 91.7% 92.1% $ 1,130,108 $ 618,438 268 "Non Same Store" 245 Park Avenue 50.1 Park Avenue 1,782,793 74.6 83.2 $ 132,115 $ 66,189 13 450 Park Avenue 25.1 Park Avenue 337,000 82.3 92.5 34,979 8,780 21 Subtotal / Weighted Average 2,119,793 75.8% 84.7% $ 167,094 $ 74,969 34 Total / Weighted Average Manhattan Unconsolidated Office Properties 15,412,174 89.5% 91.1% $ 1,297,202 $ 693,407 302 Manhattan Office Grand Total / Weighted Average 23,811,315 87.9% 89.4% $ 1,813,918 $ 1,210,123 751 Manhattan Office Same Store Occupancy %—Combined 21,472,726 89.2% 90.0% 26 Table of Contents Properties Ownership Interest (%) SubMarket Square Feet (1) % Occupied (2) % Leased (3) Annualized Contractual Cash Rent ($'s) Annualized Contractual Cash Rent SLG Share ($'s) Total Tenants SUBURBAN CONSOLIDATED OFFICE PROPERTIES "Same Store" Suburban Landmark Square 100.0 Stamford, Connecticut 862,800 77.1 77.1 $ 19,378 $ 19,378 100 Subtotal/Weighted Average 862,800 77.1% 77.1% $ 19,378 $ 19,378 100 Total / Weighted Average Suburban Consolidated Office Properties 862,800 77.1% 77.1% $ 19,378 $ 19,378 100 Suburban Office Grand Total / Weighted Average 862,800 77.1% 77.1% $ 19,378 $ 19,378 100 Properties Ownership Interest (%) SubMarket Square Feet (1) % Occupied (2) % Leased (3) Annualized Contractual Cash Rent ($'s) Annualized Contractual Cash Rent SLG Share ($'s) Total Tenants RETAIL PROPERTIES "Same Store" Retail 85 Fifth Avenue 36.3 Midtown South 12,946 100.0 100.0 $ 2,250 $ 816 1 Subtotal/Weighted Average 12,946 100.0% 100.0% $ 2,250 $ 816 1 "Non Same Store" Retail 760 Madison Avenue 100.0 Plaza District 22,648 100.0 100.0 $ 18,362 $ 18,362 1 Subtotal/Weighted Average 22,648 100.0% 100.0% $ 18,362 $ 18,362 1 Total / Weighted Average Retail Properties 35,594 100.0% 100.0% $ 20,612 $ 19,178 2 Properties Ownership Interest (%) SubMarket Square Feet (1) Total Units % Occupied (2) % Leased (3) Annualized Contractual Cash Rent ($'s) Annualized Contractual Cash Rent SLG Share ($'s) Average Monthly Rent Per Unit ($'s) (5) RESIDENTIAL "Non Same Store" Residential 7 Dey Street 100.0 Lower Manhattan 140,382 209 95.2 96.7 $ 11,385 $ 11,384 $ 4,767 15 Beekman Street 20.0 Downtown 221,884 484 (6) 100.0 100.0 13,473 2,695 — Subtotal/Weighted Average 362,266 693 98.6% 99.0% $ 24,858 $ 14,079 $ 4,767 Total / Weighted Average Residential Properties 362,266 693 98.6% 99.0% $ 24,858 $ 14,079 $ 4,767 Properties Ownership Interest (%) SubMarket Square Feet (1) % Occupied (2) % Leased (3) Annualized Contractual Cash Rent ($'s) Annualized Contractual Cash Rent SLG Share ($'s) Total Tenants DEVELOPMENT/REDEVELOPMENT 19 East 65th Street 100.0 Plaza District 14,639 5.5 5.5 $ 32 $ 32 1 185 Broadway 100.0 Lower Manhattan 50,206 34.5 34.5 3,323 3,323 4 625 Madison Avenue 90.4 Plaza District 563,000 — — — — — 750 Third Avenue 100.0 Grand Central North 780,000 17.7 17.7% 10,876 10,876 21 One Madison Avenue 25.5 N/A 1,396,426 N/A N/A N/A N/A N/A 760 Madison - Residential Condominiums 100.0 N/A 35,926 N/A N/A N/A N/A N/A Subtotal/Weighted Average 2,840,197 11.1% 11.1% $ 14,231 $ 14,231 26 Total / Weighted Average Development/Redevelopment Properties 2,840,197 11.1% 11.1% $ 14,231 $ 14,231 26 27 Table of Contents Properties Ownership Interest (%) SubMarket Square Feet (1) % Occupied (2) % Leased (3) Annualized Contractual Cash Rent ($'s) Annualized Contractual Cash Rent SLG Share ($'s) Total Tenants ALTERNATIVE STRATEGY PORTFOLIO 2 Herald Square (7) 51.0 Herald Square 369,000 34.5 34.5 $ 19,815 $ 10,106 4 5 Times Square 31.6 Times Square 1,127,931 23.3 23.3 27,069 8,540 3 11 West 34th Street 30.0 Herald Square/Penn Station 17,150 100.0 100.0 3,480 1,044 1 115 Spring Street 51.0 Soho 5,218 100.0 100.0 3,984 2,032 1 650 Fifth Avenue 50.0 Plaza District 69,214 100.0 100.0 40,064 20,032 1 690 Madison Avenue 100.0 Plaza District 7,848 100.0 100.0 1,505 1,505 1 717 Fifth Avenue (8) 10.9 Midtown/Plaza District 119,550 90.4 90.4 29,362 3,206 5 719 Seventh Avenue 75.0 Times Square 10,040 — — — — — 1552-1560 Broadway 50.0 Times Square 57,718 88.3 88.3 30,764 15,382 3 Worldwide Plaza (9) 25.0 Westside 2,048,725 91.8 91.8 146,256 36,490 22 Subtotal/Weighted Average 3,832,394 66.0% 66.0% $ 302,299 $ 98,337 41 Total / Weighted Average Alternative Strategy Portfolio Properties 3,832,394 66.0% 66.0% $ 302,299 $ 98,337 41 (1) Represents the rentable square footage at the time the property was acquired.
Many of these buildings include some amount of retail space on the lower floors, as well as basement/storage space. As of December 31, 2022, our portfolio also included ownership interests in one consolidated property, encompassing seven commercial office buildings totaling approximately 0.9 million rentable square feet, in Stamford Connecticut, which we refer to as our Suburban property.
Many of these buildings include some amount of retail space on the lower floors, as well as basement/storage space. As of December 31, 2023, our portfolio also included ownership interests in one consolidated property, encompassing seven commercial office buildings totaling approximately 0.9 million rentable square feet, in Stamford Connecticut, which we refer to as our Suburban property.
For the five years ending December 31, 2027, the average annual lease expirations at our Manhattan consolidated and unconsolidated operating properties is expected to be approximately 0.8 million square feet and approximately 0.6 million square feet, respectively, representing an average annual expiration rate of approximately 8.3% and approximately 4.6%, respectively, per year (assuming no tenants exercise renewal or cancellation options and there are no tenant bankruptcies or other tenant defaults).
For the five years ending December 31, 2028, the average annual lease expirations at our Manhattan consolidated and unconsolidated operating properties is expected to be approximately 0.7 million square feet and approximately 0.6 million square feet, respectively, representing an average annual expiration rate of approximately 9.2% and approximately 4.0%, respectively, per year (assuming no tenants exercise renewal or cancellation options and there are no tenant bankruptcies or other tenant defaults).
Historical Occupancy Historically, we have consistently achieved materially higher occupancy rates in our Manhattan portfolio as compared to the overall midtown Manhattan market, as shown over the last five years in the following table: Occupancy Rate of Manhattan Operating Portfolio(1) Occupancy Rate of Class A Office Properties in the Midtown Manhattan Markets(2)(3) Occupancy Rate of Class B Office Properties in the Midtown Manhattan Markets(2)(3) December 31, 2022 90.7 % 78.4 % 76.6 % December 31, 2021 92.1 % 80.6 % 77.1 % December 31, 2020 92.4 % 85.0 % 81.1 % December 31, 2019 94.5 % 88.8 % 87.4 % December 31, 2018 94.5 % 91.1 % 89.4 % (1) Includes our consolidated and unconsolidated Manhattan office properties.
Historical Occupancy Historically, we have achieved materially higher occupancy rates in our Manhattan office portfolio as compared to the overall midtown Manhattan office market, as shown in the following table: Occupancy Rate of Manhattan Operating Portfolio (1) Occupancy Rate of Class A Office Properties in the Midtown Manhattan Markets (2)(3) Occupancy Rate of Class B Office Properties in the Midtown Manhattan Markets (2)(3) December 31, 2023 89.4% 78.4% 75.5% December 31, 2022 90.7% 78.4% 76.6% December 31, 2021 92.1% 80.6% 77.1% December 31, 2020 92.4% 85.0% 81.1% December 31, 2019 94.5% 88.8% 87.4% (1) Includes our consolidated and unconsolidated Manhattan office properties.
ITEM 2. PROPERTIES Our Portfolio General As of December 31, 2022, we owned or held interests in 13 consolidated commercial office buildings encompassing approximately 10.0 million rentable square feet and 12 unconsolidated commercial office buildings encompassing approximately 14.0 million rentable square feet located primarily in midtown Manhattan.
ITEM 2. PROPERTIES Our Portfolio General As of December 31, 2023, we owned or held interests in 13 consolidated commercial office buildings encompassing approximately 8.4 million rentable square feet and 12 unconsolidated commercial office buildings encompassing approximately 15.4 million rentable square feet located primarily in midtown Manhattan.
(2) Annualized Cash Rent of Expiring Leases represents the monthly contractual rent for December 2022 under existing leases as of December 31, 2022 multiplied by 12. This amount reflects total rent before any rent abatements and includes expense reimbursements, which may be estimated as of such date.
(2) Represents the monthly contractual rent under existing leases as of December 31, 2023 multiplied by 12. This amount reflects total rent before any rent abatements, deferrals, concessions and includes expense reimbursements, which may be estimated as of such date.
(2) Annualized Cash Rent of Expiring Leases represents the monthly contractual rent for December 2022 under existing leases as of December 31, 2022 multiplied by 12. This amount reflects total rent before any rent abatements and includes expense reimbursements, which may be estimated as of such date.
(2) Represents the monthly contractual rent under existing leases as of December 31, 2023 multiplied by 12. This amount reflects total rent before any rent abatements, deferrals, concessions and includes expense reimbursements, which may be estimated as of such date.
(3) Annualized Cash Rent Per Leased Square Foot of Expiring Leases represents Annualized Cash Rent of Expiring Leases, as described in footnote (2) above, presented on a per leased square foot basis. (4) Includes approximately 53,301 square feet and annualized cash rent of $4.1 million occupied by month-to-month holdover tenants whose leases expired prior to December 31, 2022.
(3) Represents Annualized Cash Rent of Expiring Leases, as described in footnote (2) above, presented on a per square foot basis. (4) Includes approximately 177,309 square feet and annualized cash rent of $10.0 million occupied by month-to-month holdover tenants whose leases expired prior to December 31, 2023.
Environmental Matters Phase I environmental site assessments have been prepared on the properties in our portfolio, in order to assess existing environmental conditions. All of the Phase I assessments met the American Society for Testing and Materials (ASTM) Standard.
(4) The asset was sold in January 2024. 30 Table of Contents Environmental Matters Phase I environmental site assessments have been prepared on the properties in our portfolio, in order to assess existing environmental conditions. All of the Phase I assessments met the American Society for Testing and Materials (ASTM) Standard.
The following table sets forth information regarding the leases with respect to the 20 largest tenants in our properties, which are not intended to be representative of our tenants as a whole, based on the amount of our share of annualized cash rent as of December 31, 2022: Tenant Name Property Lease Expiration Total Rentable Square Feet Annualized Cash Rent SLG Share of Annualized Cash Rent ($) % of SLG Share of Annualized Cash Rent (1) Annualized Rent PSF Paramount Global (formerly ViacomCBS Inc.) 1515 Broadway June 2031 1,603,126 $ 101,312 $ 57,748 4.1 % $ 63.20 555 West 57th Street December 2023 317,851 16,881 16,880 1.2 % 53.11 1515 Broadway March 2028 9,106 2,062 1,176 0.1 % 226.48 Worldwide Plaza January 2027 32,598 2,525 630 — % 77.46 1,962,681 $ 122,780 $ 76,434 5.4 % $ 62.56 Credit Suisse Securities (USA), Inc. 11 Madison Avenue May 2037 1,184,762 $ 75,380 $ 45,228 3.2 % $ 63.62 Sony Corporation 11 Madison Avenue January 2031 578,791 $ 50,205 $ 30,123 2.1 % $ 86.74 Debevoise & Plimpton, LLP 919 Third Avenue February 2023 527,433 $ 46,826 $ 23,881 1.7 % $ 88.78 TD Bank US Holding Company One Vanderbilt Avenue July 2041 193,159 $ 24,837 $ 17,637 1.3 % $ 128.59 One Vanderbilt Avenue August 2041 6,843 3,217 2,284 0.2 % 470.04 125 Park Avenue October 2023 6,234 2,027 2,027 0.1 % 325.12 125 Park Avenue October 2030 26,536 1,824 1,824 0.1 % 68.72 232,772 $ 31,905 $ 23,772 1.7 % $ 137.06 Carlyle Investment Management LLC One Vanderbilt Avenue September 2036 194,702 $ 32,471 $ 23,058 1.6 % $ 166.77 The City of New York 100 Church Street March 2034 510,007 $ 20,622 $ 20,622 1.5 % $ 40.43 King & Spalding 1185 Avenue of the Americas October 2025 218,275 $ 20,573 $ 20,573 1.5 % $ 94.25 Metro-North Commuter Railroad Company 420 Lexington Avenue November 2034 344,873 $ 20,058 $ 20,058 1.5 % $ 58.16 420 Lexington Avenue January 2027 7,537 444 444 — % 58.89 352,410 $ 20,502 $ 20,502 1.5 % $ 58.18 WME IMG, LLC 304 Park Avenue April 2028 174,069 $ 13,477 $ 13,477 1.0 % $ 77.42 11 Madison Avenue September 2030 104,618 10,358 6,215 0.4 % 99.01 278,687 $ 23,835 $ 19,692 1.4 % $ 85.52 Nike Retail Services, Inc. 650 Fifth Avenue January 2033 69,214 $ 38,256 $ 19,128 1.4 % $ 552.72 Bloomberg L.P. 919 Third Avenue February 2029 557,208 $ 35,903 $ 18,311 1.3 % $ 64.43 Ares Management LLC 245 Park Avenue May 2026 175,042 $ 17,777 $ 17,777 1.3 % $ 101.56 Cravath, Swaine & Moore LLP Worldwide Plaza August 2024 617,135 $ 70,102 $ 17,490 1.2 % $ 113.59 Cooperatieve Rabobank UA 245 Park Avenue September 2026 109,657 $ 16,844 $ 16,844 1.2 % $ 153.61 McDermott Will & Emery LLP One Vanderbilt Avenue March 2042 146,642 $ 23,309 $ 16,551 1.2 % $ 158.95 420 Lexington Avenue October 2041 10,043 615 615 — % 61.25 156,685 $ 23,924 $ 17,166 1.2 % $ 152.69 Toronto Dominion Bank One Vanderbilt Avenue December 2042 142,892 $ 18,757 $ 13,320 0.9 % $ 131.27 125 Park Avenue October 2041 52,450 3,476 3,476 0.3 % 66.27 195,342 $ 22,233 $ 16,796 1.2 % $ 111.04 Stone Ridge Holdings Group LP One Vanderbilt Avenue December 2037 97,652 $ 21,428 $ 15,216 1.1 % $ 219.43 30 Table of Contents Hess Corp 1185 Avenue of the Americas December 2027 167,169 $ 15,101 $ 15,101 1.1 % $ 90.34 BMW of Manhattan, Inc. 555 West 57th Street July 2032 226,556 $ 12,737 $ 12,737 0.9 % $ 56.22 Total 8,412,180 $ 719,404 $ 470,451 33.5 % $ 85.52 (1) SLG Share of Annualized Cash Rent includes Manhattan, Suburban, Retail, Residential, and Development / Redevelopment properties.
The following table sets forth information regarding the leases with respect to the 20 largest tenants in our properties, which are not intended to be representative of our tenants as a whole, based on the amount of our share of annualized cash rent as of December 31, 2023: 29 Table of Contents Tenant Name Property Lease Expiration (1) Total Rentable Square Feet Annualized Cash Rent SLG Share of Annualized Cash Rent ($) % of SLG Share of Annualized Cash Rent (2) Annualized Cash Rent per Square Foot Paramount Global (formerly ViacomCBS Inc.) 1515 Broadway June 2031 1,603,126 $ 105,728 $ 60,159 4.5 % $ 65.95 555 West 57th Street April 2029 180,779 10,048 10,047 0.8 % 55.58 555 West 57th Street December 2023 137,072 7,251 7,251 0.5 % 52.90 1515 Broadway March 2028 9,106 2,113 1,203 0.1 % 232.09 Worldwide Plaza January 2027 32,598 2,526 630 — % 77.49 1,962,681 $ 127,666 $ 79,290 5.9 % $ 65.05 Credit Suisse Securities (USA), Inc. 11 Madison Avenue May 2037 1,184,762 $ 75,934 $ 45,561 3.4 % $ 64.09 Sony Corporation 11 Madison Avenue January 2031 578,791 $ 50,959 $ 30,575 2.3 % $ 88.04 TD Bank US Holding Company One Vanderbilt Avenue July 2041 193,159 $ 25,412 $ 18,045 1.3 % $ 131.56 One Vanderbilt Avenue August 2041 6,843 3,234 2,296 0.2 % 472.58 125 Park Avenue October 2025 6,234 2,029 2,029 0.2 % 325.47 125 Park Avenue October 2030 26,536 1,835 1,835 0.1 % 69.16 125 Park Avenue March 2034 25,171 1,611 1,611 0.1 % 64.00 257,943 $ 34,121 $ 25,816 1.9 % $ 132.28 Bloomberg L.P. 919 Third Avenue February 2029 749,216 $ 50,549 $ 25,780 1.9 % $ 67.47 Societe Generale 245 Park Avenue October 2032 520,831 $ 50,566 $ 25,334 1.9 % $ 97.09 Carlyle Investment Management LLC One Vanderbilt Avenue September 2036 194,702 $ 32,994 $ 23,429 1.7 % $ 169.46 The City of New York 100 Church Street March 2034 510,007 $ 21,145 $ 21,145 1.6 % $ 41.46 King & Spalding 1185 Avenue of the Americas October 2025 218,275 $ 21,134 $ 21,134 1.6 % $ 96.82 Metro-North Commuter Railroad Company (3) 420 Lexington Avenue November 2034 344,873 $ 19,905 $ 19,905 1.5 % $ 57.72 420 Lexington Avenue January 2027 7,537 444 444 — % 58.89 352,410 $ 20,349 $ 20,349 1.5 % $ 57.74 Nike Retail Services, Inc. 650 Fifth Avenue January 2033 69,214 $ 40,064 $ 20,032 1.5 % $ 578.84 WME IMG, LLC 304 Park Avenue April 2028 174,069 $ 13,641 $ 13,641 1.0 % $ 78.36 11 Madison Avenue September 2030 104,618 10,504 6,303 0.5 % 100.41 278,687 $ 24,145 $ 19,944 1.5 % $ 86.64 Giorgio Armani Corporation 760 Madison Avenue October 2038 22,648 $ 18,362 $ 18,362 1.4 % $ 810.76 717 Fifth Avenue (4) December 2023 46,940 2,300 251 — % 49.00 69,588 $ 20,662 $ 18,613 1.4 % $ 296.92 McDermott Will & Emery LLP One Vanderbilt Avenue December 2042 146,642 $ 24,857 $ 17,651 1.4 % $ 169.51 420 Lexington Avenue October 2026 10,043 619 619 — % 61.60 156,685 $ 25,476 $ 18,270 1.4 % $ 162.59 Toronto Dominion Bank One Vanderbilt Avenue April 2042 142,892 $ 20,466 $ 14,533 1.1 % $ 143.23 125 Park Avenue April 2042 52,450 3,583 3,583 0.2 % 68.32 195,342 $ 24,049 $ 18,116 1.3 % $ 123.12 Cravath, Swaine & Moore LLP Worldwide Plaza August 2024 617,135 $ 70,134 $ 17,498 1.3 % $ 113.64 Stone Ridge Holdings Group LP (3) One Vanderbilt Avenue December 2037 97,652 $ 22,014 $ 15,632 1.2 % 225.43 Hess Corp 1185 Avenue of the Americas December 2027 167,169 $ 15,540 $ 15,540 1.2 % $ 92.96 BMW of Manhattan, Inc. 555 West 57th Street July 2032 226,556 $ 12,857 $ 12,857 1.0 % $ 56.75 Greenberg Traurig LLP One Vanderbilt Avenue October 2037 99,888 $ 12,661 $ 8,990 0.7 % $ 126.75 420 Lexington Avenue November 2037 49,049 $ 3,355 $ 3,356 0.2 % $ 68.41 148,937 $ 16,016 $ 12,346 0.9 % $ 107.54 Total 8,556,583 $ 756,374 $ 487,261 36.4 % $ 88.40 (1) Expiration of current lease term and does not reflect extension options.
As of December 31, 2022, we also owned or held interests in 11 prime retail properties encompassing approximately 0.3 million square feet, 8 buildings in differing stages of development or redevelopment encompassing approximately 4.4 million square feet, and 1 residential building encompassing 209 units (approximately 0.1 million square feet).
Some of these buildings also include a small amount of retail space on the lower floors, as well as basement/storage space. 25 Table of Contents As of December 31, 2023, we also owned or held interests in 10 prime retail properties encompassing approximately 0.3 million square feet, 6 buildings in differing stages of development or redevelopment encompassing approximately 4.3 million square feet, and 2 residential building encompassing 209 residential units and 484 dormitory beds, respectively, encompassing approximately 0.4 million square feet.
(4) Includes approximately 53,011 square feet and annualized cash rent of $3.9 million occupied by month-to-month holdover tenants whose leases expired prior to December 31, 2022. 29 Table of Contents Tenant Diversification As of December 31, 2022, our properties were leased to 935 tenants, which are engaged in a variety of businesses, including, but not limited to, professional services, financial services, media, apparel, business services and government/non-profit.
Tenant Diversification As of December 31, 2023, our properties were leased to 920 tenants, which are engaged in a variety of businesses, including, but not limited to, financial services, professional services, technology, advertising, media, information, apparel, business services and government/non-profit.
(3) Annualized Cash Rent Per Leased Square Foot of Expiring Leases represents Annualized Cash Rent of Expiring Leases, as described in footnote (2) above, presented on a per leased square foot basis.
(3) Represents Annualized Cash Rent of Expiring Leases, as described in footnote (2) above, presented on a per square foot basis. (4) Includes approximately 114,048 square feet and annualized cash rent of $11.9 million occupied by month-to-month holdover tenants whose leases expired prior to December 31, 2023.
The following tables set forth a schedule of the annual lease expirations at our Manhattan consolidated and unconsolidated operating properties, respectively, with respect to leases in place as of December 31, 2022 for each of the next ten years and thereafter (assuming that no tenants exercise renewal or cancellation options and that there are no tenant bankruptcies or other tenant defaults): 28 Table of Contents Manhattan Consolidated Operating Properties Year of Lease Expiration Number of Expiring Leases (1) Square Footage of Expiring Leases Percentage of Total Leased Square Feet Annualized Cash Rent of Expiring Leases (2) Percentage of Annualized Cash Rent of Expiring Leases Annualized Cash Rent Per Leased Square Foot of Expiring Leases (3) 2023 (4) 85 987,366 11.0 % $ 64,762,008 10.2 % $ 65.59 2024 57 449,778 5.0 26,549,129 4.2 59.03 2025 62 497,644 5.6 43,715,047 6.9 87.84 2026 48 1,068,123 11.9 87,743,733 13.8 82.15 2027 56 718,866 8.0 57,264,515 9.0 79.66 2028 33 661,497 7.4 48,905,505 7.7 73.93 2029 21 400,505 4.5 27,172,272 4.3 67.85 2030 21 801,723 9.0 54,260,411 8.6 67.68 2031 16 474,630 5.3 34,630,194 5.5 72.96 2032 & thereafter 62 2,885,420 32.3 189,149,932 29.8 65.55 Total/weighted average 461 8,945,552 100.0 % $ 634,152,746 100.0 % $ 70.89 (1) Tenants may have multiple leases.
The following tables set forth a schedule of the annual lease expirations at our Manhattan consolidated and unconsolidated operating properties, respectively, with respect to leases in place as of December 31, 2023 for each of the next ten years and thereafter (assuming that no tenants exercise renewal or cancellation options and that there are no tenant bankruptcies or other tenant defaults): 28 Table of Contents Manhattan Consolidated Operating Properties Year of Lease Expiration Number of Expiring Leases (1) Square Footage of Expiring Leases Percentage of Total Square Feet Annualized Cash Rent of Expiring Leases (2) Percentage of Annualized Cash Rent of Expiring Leases Annualized Cash Rent per Square Foot of Expiring Leases (3) 2024 (4) 75 668,722 8.8% $ 38,699,697 7.5% $ 57.87 2025 71 680,624 9.0 55,301,323 10.7 81.25 2026 54 776,991 10.2 53,956,330 10.4 69.44 2027 55 650,165 8.6 52,559,470 10.2 80.84 2028 53 698,668 9.2 52,371,028 10.1 74.96 2029 33 591,177 7.8 38,909,520 7.5 65.82 2030 22 696,540 9.2 49,396,547 9.6 70.92 2031 18 321,405 4.2 22,841,818 4.4 71.07 2032 16 669,608 8.8 40,664,070 7.9 60.73 2033 & thereafter 60 1,835,137 24.2 112,016,314 21.7 61.04 Total/weighted average 457 7,589,037 100.0% $ 516,716,117 100.0% $ 68.09 (1) Tenants may have multiple leases.
Removed
Some of these buildings also include a small amount of retail space on the lower floors, as well as basement/storage space.
Added
In addition, we manage one office building and one retail building owned by a third party encompassing approximately 0.4 million square feet and held debt and preferred equity investments with a book value of $346.7 million, excluding $7.9 million of investments recorded in balance sheet line items other than the Debt and preferred equity investments line item.
Removed
Feet Total Units Percent Occupied ( 1 ) Annualized Cash Rent ( 2 ) Average Monthly Rent Per Unit RESIDENTIAL "Non Same Store" Residential 7 Dey Street Lower Manhattan 140,382 209 89.5 % $ 11,019 $ 4,910 Subtotal/Weighted Average 140,382 209 89.5 % $ 11,019 $ 4,910 Total / Weighted Average Residential Properties 140,382 209 89.5 % $ 11,019 $ 4,910 (1) Excludes leases signed but not yet commenced as of December 31, 2022.
Added
(2) Occupancy for commenced leases. (3) Occupancy inclusive of leases signed but not yet commenced. (4) Alternative Strategy Portfolio property. (5) Calculated based on occupied units. Amount in dollars. (6) Property occupied by Pace University and used as an academic center and dormitory space. 484 represents number of beds.
Removed
(2) Annualized Cash Rent represents the monthly contractual rent under existing leases as of December 31, 2022 multiplied by 12. This amount reflects total rent before any rent abatements and includes expense reimbursements, which may be estimated as of such date. (3) Includes our share of unconsolidated joint venture annualized cash rent.
Added
(7) The Company closed on the acquisition of additional interests in the joint venture in January 2024, which increased the Company's interest to 95%. (8) Along with its joint venture partner, the Company closed on the sale of this property in January 2024. (9) Property included in Manhattan Operating Properties as of December 31, 2023.
Removed
(4) Annualized Cash Rent Per Leased Square Foot represents Annualized Cash Rent, as described in footnote (1) above, presented on a per leased square foot basis. (5) The Company owns 100% of the leasehold interest and 50% of the fee interest.
Added
Manhattan Unconsolidated Operating Properties Year of Lease Expiration Number of Expiring Leases (1) Square Footage of Expiring Leases Percentage of Total Square Feet Annualized Cash Rent of Expiring Leases (2) Percentage of Annualized Cash Rent of Expiring Leases Annualized Cash Rent per Square Foot of Expiring Leases (3) 2024 (4) 34 946,092 6.8% $ 104,741,363 8.1% $ 110.71 2025 26 373,433 2.7 36,125,921 2.8 96.74 2026 42 802,152 5.8 89,411,068 6.9 111.46 2027 29 352,724 2.5 44,741,842 3.4 126.85 2028 30 305,851 2.2 35,200,396 2.7 115.09 2029 17 893,912 6.4 64,603,106 5.0 72.27 2030 21 505,445 3.6 51,835,737 4.0 102.55 2031 27 2,912,088 21.0 219,024,122 16.9 75.21 2032 15 1,075,978 7.8 95,341,186 7.3 88.61 2033 & thereafter 75 5,714,468 41.2 556,177,116 42.9 97.33 Total/weighted average 316 13,882,143 100.0% $ 1,297,201,857 100.0% $ 93.44 (1) Tenants may have multiple leases.
Removed
(6) The 0.2 million square foot development, which includes academic space and dormitory space and is 100% pre-leased to Pace University, has a total budget of $219.5 million. Delivery of the academic space was delivered in the fourth quarter of 2022 and delivery of the dormitory space is expected in the third quarter of 2023.
Added
(2) SLG Share of Annualized Cash Rent includes Manhattan, Suburban, Retail, Residential and Development / Redevelopment properties. (3) Tenant pays rent on a net basis. Rent PSF reflects gross equivalent.
Removed
As of December 31, 2022, $68.3 million of the budget remains to be spent, comprised of $30.0 million of partners' equity and $38.3 million of financing available under the project's construction facility. (7) The 1.4 million square foot redevelopment, which is anticipated to be completed in the fourth quarter of 2023, has a total budget of $2.3 billion.
Removed
As of December 31, 2022, $1.4 billion of the budget remains to be spent, comprised of $0.6 billion of partners' equity and $0.8 billion of financing available under the project's construction facility.
Removed
Manhattan Unconsolidated Operating Properties Year of Lease Expiration Number of Expiring Leases( 1 ) Square Footage of Expiring Leases Percentage of Total Leased Square Feet Annualized Cash Rent of Expiring Leases( 2 ) Percentage of Annualized Cash Rent of Expiring Leases Annualized Cash Rent Per Leased Square Foot of Expiring Leases( 3 ) 2023 (4) 29 724,966 5.4 % $ 63,515,977 5.3 % $ 87.61 2024 30 1,014,470 7.6 112,022,038 9.3 110.42 2025 26 425,848 3.2 41,695,535 3.5 97.91 2026 35 587,690 4.4 63,670,124 5.3 108.34 2027 26 283,795 2.1 38,193,157 3.2 134.58 2028 30 294,902 2.2 32,090,762 2.6 108.82 2029 17 884,966 6.6 66,377,729 5.5 75.01 2030 18 455,760 3.4 45,619,919 3.8 100.10 2031 23 2,802,003 21.0 205,840,767 17.1 73.46 2032 & thereafter 76 5,869,628 44.1 535,962,560 44.4 91.31 Total/weighted average 310 13,344,028 100.0 % $ 1,204,988,568 100.0 % $ 90.30 (1) Tenants may have multiple leases.

Item 3. Legal Proceedings

Legal Proceedings — active lawsuits and investigations

1 edited+0 added−0 removed1 unchanged
Biggest changeITEM 3. LEGAL PROCEEDINGS As of December 31, 2022, 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. ITEM 4.
Biggest changeITEM 3. LEGAL PROCEEDINGS As of December 31, 2023, 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. ITEM 4.

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

5 edited+0 added−7 removed7 unchanged
Biggest changeAs of December 31, 2022, share repurchases, excluding the redemption of OP Units, executed under the program were as follows: Period Shares repurchased Average price paid per share Cumulative number of shares repurchased as part of the repurchase plan or programs Year ended 2017 7,865,206 $107.81 7,865,206 Year ended 2018 9,187,480 $102.06 17,052,686 Year ended 2019 4,333,260 $88.69 21,385,946 Year ended 2020 8,276,032 $64.30 29,661,978 Year ended 2021 4,474,649 $75.44 34,136,627 Year ended 2022 1,971,092 $76.69 36,107,719 32 Table of Contents SALE OF UNREGISTERED AND REGISTERED SECURITIES; USE OF PROCEEDS FROM REGISTERED SECURITIES During the years ended December 31, 2022 and 2021, we did not issue any 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.
Biggest changeThe following table summarizes share repurchases executed under the program, excluding the redemption of OP units, during the three months ended December 31, 2023: Period Shares repurchased Average price paid per share Cumulative number of shares repurchased as part of the repurchase plan or programs October 1-31 — $— 36,107,719 November 1-30 — $— 36,107,719 December 1-31 — $— 36,107,719 SALE OF UNREGISTERED SECURITIES During the years ended December 31, 2023, 2022, and 2021 we did not issue any 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.
ITEM 5. MARKET FOR REGISTRANTS' COMMON EQUITY AND RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES SL GREEN REALTY CORP.
ITEM 5. MARKET FOR REGISTRANTS' COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES SL GREEN REALTY CORP.
As of December 31, 2022, there were 3,670,343 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.
As of December 31, 2023, there were 3,949,448 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.
Our common stock trades on the New York Stock Exchange, or the NYSE, under the symbol "SLG." On February 15, 2023, the reported closing sale price per share of common stock on the NYSE was $40.14 and there were 475 holders of record of our common stock. SL GREEN OPERATING PARTNERSHIP, L.P.
Our common stock trades on the New York Stock Exchange, or the NYSE, under the symbol "SLG." On February 22, 2024, the reported closing sale price per share of common stock on the NYSE was $46.76 and there were 419 holders of record of our common stock. SL GREEN OPERATING PARTNERSHIP, L.P.
There is no established public trading market for the common units of the Operating Partnership. On February 15, 2023, there were 54 holders of record and 68,563,622 common units outstanding, 64,365,509 of which were held by SL Green.
There is no established public trading market for the common units of the Operating Partnership. On February 22, 2024, there were 52 holders of record and 69,221,575 common units outstanding, 64,799,013 of which were held by SL Green.
Removed
During the year ended December 31, 2020, we issued 95,094 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.
Removed
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.
Removed
The following table summarizes information, as of December 31, 2022, 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.
Removed
Number of securities to be issued upon exercise of outstanding options, warrants and rights Weighted average exercise price of outstanding options, warrants and rights Number of securities remaining available for future issuance under equity compensation plans (excluding securities reflected in column (a)) Plan category (a) (b) (c) Equity compensation plans approved by security holders (1) 4,031,855 (2) $ 97.59 (3) 6,570,148 (4) Equity compensation plans not approved by security holders — — — Total 4,031,855 $ 97.59 6,570,148 (1) Includes our Fifth Amended and Restated 2005 Stock Option and Incentive Plan, Amended 1997 Stock Option and Incentive Plan, as amended, and 2008 Employee Stock Purchase Plan.
Removed
(2) Includes (i) 313,480 shares of common stock issuable upon the exercise of outstanding options (313,480 of which are vested and exercisable), (ii) 192,638 phantom stock units that may be settled in shares of common stock (192,638 of which are vested), (iii) 2,705,720 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 (1,419,640 of which are vested).
Removed
(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.
Removed
The number of securities remaining available consists of shares remaining available for issuance under our 2008 Employee Stock Purchase Plan and Fifth Amended and Restated 2005 Stock Option and Incentive Plan. 33 Table of Contents

Item 7. Management's Discussion & Analysis

Management's Discussion & Analysis (MD&A) — revenue / margin commentary

117 edited+13 added−21 removed127 unchanged
Biggest changeSame-Store Disposed Other Consolidated (in millions) 2022 2021 $ Change % Change 2022 2021 2022 2021 2022 2021 $ Change % Change Rental revenue $ 556.7 $ 530.0 $ 26.7 5.0 % $ 0.9 $ 38.9 $ 113.9 $ 109.3 $ 671.5 $ 678.2 $ (6.7) (1.0) % Investment income — — — — % — — 81.1 80.3 81.1 80.3 0.8 1.0 % Other income 3.9 3.9 — — % 10.4 27.5 59.8 54.1 74.1 85.5 (11.4) (13.3) % Total revenues 560.6 533.9 26.7 5.0 % 11.3 66.4 254.8 243.7 826.7 844.0 (17.3) (2.0) % Property operating expenses 266.7 260.1 6.6 2.5 % 2.0 17.5 70.5 68.9 339.2 346.5 (7.3) (2.1) % Transaction related costs — 0.2 (0.2) (100.0) % — — 0.4 3.6 0.4 3.8 (3.4) (89.5) % Marketing, general and administrative — — — — % — — 93.8 94.9 93.8 94.9 (1.1) (1.2) % 266.7 260.3 6.4 2.5 % 2.0 17.5 164.7 167.4 433.4 445.2 (11.8) (2.7) % Other income (expenses): Interest expense and amortization of deferred financing costs, net of interest income $ (97.3) $ (82.3) $ (15.0) 18.2 % Depreciation and amortization (215.3) (216.9) 1.6 (0.7) % Equity in net loss from unconsolidated joint ventures (58.0) (55.4) (2.6) 4.7 % Equity in net loss on sale of interest in unconsolidated joint venture/real estate (0.1) (32.8) 32.7 (99.7) % Purchase price and other fair value adjustments (8.1) 210.1 (218.2) (103.9) % (Loss) gain on sale of real estate, net (84.5) 287.4 (371.9) (129.4) % Depreciable real estate reserves and impairments (6.3) (23.8) 17.5 (73.5) % Loss on early extinguishment of debt — (1.6) 1.6 (100.0) % Loan loss and other investment reserves, net of recoveries — (2.9) 2.9 (100.0) % Net (loss) income $ (76.3) $ 480.6 $ (556.9) (115.9) % Rental Revenue Rental revenues decreased primarily due to the deconsolidation of 220 East 42nd Street as a result of the sale of a joint venture interest during the third quarter of 2021 ($39.0 million), our Disposed Properties ($37.9 million) and properties moved into redevelopment ($23.4 million).
Biggest changeSame-Store Disposed Other Consolidated (in millions) 2023 2022 $ Change % Change 2023 2022 2023 2022 2023 2022 $ Change % Change Rental revenue $ 549.6 $ 556.7 $ (7.1) (1.3) % $ — $ 0.9 $ 133.7 $ 113.9 $ 683.3 $ 671.5 $ 11.8 1.8 % SUMMIT Operator revenue — — — — % — — 118.3 89.0 118.3 89.0 29.3 32.9 % Investment income — — — — % — — 34.7 81.1 34.7 81.1 (46.4) (57.2) % Other income 4.1 3.9 0.2 5.1 % — 10.4 73.3 63.5 77.4 77.8 (0.4) (0.5) % Total revenues 553.7 560.6 (6.9) (1.2) % — 11.3 360.0 347.5 913.7 919.4 (5.7) (0.6) % Property operating expenses 277.0 266.7 10.3 3.9 % 0.2 2.0 90.3 70.5 367.5 339.2 28.3 8.3 % SUMMIT Operator expenses — — — — % — — 101.2 89.2 101.2 89.2 12.0 13.5 % Transaction related costs — — — — % — — 1.1 0.4 1.1 0.4 0.7 175.0 % Marketing, general and administrative — — — — % — — 111.4 93.8 111.4 93.8 17.6 18.8 % 277.0 266.7 10.3 3.9 % 0.2 2.0 304.0 253.9 581.2 522.6 58.6 11.2 % Other income (expenses): Interest expense and amortization of deferred financing costs, net of interest income $ (145.0) $ (97.3) $ (47.7) 49.0 % SUMMIT Operator tax expense (9.2) (2.6) (6.6) 253.8 % Depreciation and amortization (247.8) (216.2) (31.6) 14.6 % Equity in net loss from unconsolidated joint ventures (76.5) (58.0) (18.5) 31.9 % Equity in net loss on sale of interest in unconsolidated joint venture/real estate (13.4) (0.1) (13.3) 13,300.0 % Purchase price and other fair value adjustments (17.3) (8.1) (9.2) 113.6 % Loss on sale of real estate, net (32.4) (84.5) 52.1 (61.7) % Depreciable real estate reserves and impairments (382.4) (6.3) (376.1) 5,969.8 % Loss on early extinguishment of debt (0.9) — (0.9) — % Loan loss and other investment reserves, net of recoveries (6.9) — (6.9) — % Net loss $ (599.3) $ (76.3) $ (523.0) 685.5 % 39 Table of Contents Rental Revenue Rental revenues increased due primarily to the acquisition of 245 Park Avenue ($23.3 million) during the third quarter of 2022 and prior to its deconsolidation in the second quarter of 2023, offset by a lower contribution from our Same-Store Properties due primarily to reduced occupancy ($7.0 million).
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, redevelopment, repositioning, ownership, management and operation of commercial real estate properties, principally office properties, located in the New York metropolitan area, principally Manhattan.
Green Properties, Inc. and its affiliated partnerships and entities. The Company is a self-managed real estate investment trust, or REIT, engaged in the ownership, management, operation, acquisition, development, redevelopment and repositioning of commercial real estate properties, principally office properties, located in the New York metropolitan area, principally Manhattan.
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.
See Note 4, "Properties Held for Sale and Property 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.
Revenue Recognition Rental revenue for operating leases is recognized on a straight-line basis over the term of the lease and we have determined that the collectability of substantially all of the lease payments are probable. If collectability of substantially all of the lease payments is assessed as not probably, rental revenue is recognized only upon actual receipt.
Revenue Recognition Rental revenue for operating leases is recognized on a straight-line basis over the term of the lease and we have determined that the collectability of substantially all of the lease payments are probable. If collectability of substantially all of the lease payments is assessed as not probable, rental revenue is recognized only upon actual receipt.
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 income until the hedged item is recognized in earnings.
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 income (loss) until the hedged item is recognized in earnings.
Holliday and Mathias paid $1.4 million and $1.0 million, respectively, which equaled 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.
Mathias paid $1.4 million and $1.0 million, respectively, which equaled 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.
Indebtedness The table below summarizes our consolidated mortgages and other loans payable, 2021 credit facility, 2022 term loan, senior unsecured notes and trust preferred securities outstanding as of December 31, 2022 and 2021, (amounts in thousands).
Indebtedness The table below summarizes our consolidated mortgages and other loans payable, 2021 credit facility, 2022 term loan, senior unsecured notes and trust preferred securities outstanding as of December 31, 2023 and 2022, (amounts in thousands).
As of December 31, 2022, the 2021 credit facility bore interest at a spread over adjusted Term SOFR plus 10 basis points with an interest period of one or three months, as we may elect, ranging from (i) 72.5 basis points to 140 basis points for loans under the revolving credit facility, (ii) 80 basis points to 160 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.
As of December 31, 2023, the 2021 credit facility bore interest at a spread over adjusted Term SOFR plus 10 basis points with an interest period of one or three months, as we may elect, ranging from (i) 72.5 basis points to 140 basis points for loans under the revolving credit facility, (ii) 80 basis points to 160 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.
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.
A consolidated 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.
As of December 31, 2022 and 2021, 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.
As of December 31, 2023 and 2022, 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.
We also have an option, subject to customary conditions, to increase the capacity of the 2022 term loan to $500.0 million on or before January 7, 2023 without the consent of existing lenders, by obtaining additional commitments from our existing lenders and other financial institutions. In January 2023, the 2022 term loan was increased by $25.0 million to $425.0 million.
We also had an option, subject to customary conditions, to increase the capacity of the 2022 term loan to $500.0 million on or before January 7, 2023 without the consent of existing lenders, by obtaining additional commitments from our existing lenders and other financial institutions. In January 2023, the 2022 term loan was increased by $25.0 million to $425.0 million.
Related Party Transactions Cleaning/ Security/ Messenger and Restoration Services Alliance Building Services, or Alliance, and its affiliates, which provide services to certain properties owned by us, were previously 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.
Related Party Transactions Cleaning/ Security/ Messenger and Restoration Services Prior to 2023, Alliance Building Services, or Alliance, and its affiliates, which provide services to certain properties owned by us, were previously 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.
Otherwise, we account for these arrangements consistent with the accounting for our debt and preferred equity investments. 36 Table of Contents 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.
Otherwise, we account for these arrangements consistent with the accounting for our debt and preferred equity investments. 35 Table of Contents 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.
Restrictive Covenants The terms of the 2021 credit facility, 2022 term loan 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.
Restrictive Covenants The terms of the 2021 credit facility and 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.
As of December 31, 2022, the 2021 credit facility consisted of a $1.25 billion revolving credit facility, a $1.05 billion term loan (or "Term Loan A"), and a $200.0 million term loan (or "Term Loan B") with maturity dates of May 15, 2026, May 15, 2027, and November 21, 2024, respectively.
As of December 31, 2023, the 2021 credit facility consisted of a $1.25 billion revolving credit facility, a $1.05 billion term loan (or "Term Loan A"), and a $200.0 million term loan (or "Term Loan B") with maturity dates of May 15, 2026, May 15, 2027, and November 21, 2024, respectively.
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. 35 Table of Contents 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.
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. 34 Table of Contents On a periodic basis, we assess whether there are any indications that the value of our consolidated real estate properties may be impaired or that their carrying value may not be recoverable.
Before we pay any cash dividend, whether for Federal income tax purposes or otherwise, which would only be paid out of available cash to the extent permitted under the 2021 credit facility, 2022 term loan and senior unsecured notes, we must first meet both our operating requirements and scheduled debt service on our mortgages and loans payable.
Before we pay any cash dividend, whether for Federal income tax purposes or otherwise, which would only be paid out of available cash to the extent permitted under the 2021 credit facility and senior unsecured notes, we must first meet both our operating requirements and scheduled debt service on our mortgages and loans payable.
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. 54 Table of Contents
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. 52 Table of Contents
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. 38 Table of Contents In addition, quarterly, the Company assigns each loan a risk rating.
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.
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; • 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; 53 Table of Contents • 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.
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; • dependence upon the New York City real estate market; • 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 debt and equity capital for our operational needs and investment strategy; • 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.
These sources generate a relatively consistent stream of cash flow that provides us with resources to pay operating expenses, debt service, and fund dividend and distribution requirements. 44 Table of Contents Cash is used in investing activities to fund acquisitions, development or redevelopment projects and recurring and nonrecurring capital expenditures.
These sources generate a relatively consistent stream of cash flow that provides us with resources to pay operating expenses, debt service, and fund dividend and distribution requirements. Cash is used in investing activities to fund acquisitions, development or redevelopment projects and recurring and nonrecurring capital expenditures.
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, 2022, the facility fee was 25 basis points.
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, 2023, the facility fee was 30 basis points.
Debt and Preferred Equity In 2021 and 2022, in our debt and preferred equity portfolio we continued to focus on underwriting financings for owners, acquirers or developers of properties in New York City.
Debt and Preferred Equity In 2022 and 2023, in our debt and preferred equity portfolio we continued to focus on underwriting financings for owners, acquirers or developers of properties in New York City.
A discussion of our results of operations for the year ended December 31, 2021 compared to the year ended December 31, 2020 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, 2021, filed with the SEC on February 18, 2022, and is incorporated by reference into this Annual Report on Form 10-K.
A discussion of our results of operations for the year ended December 31, 2022 compared to the year ended December 31, 2021 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, 2022, filed with the SEC on February 17, 2023, and is incorporated by reference into this Annual Report on Form 10-K.
Leasing and Operating As of December 31, 2022, our same-store Manhattan office property occupancy inclusive of leases signed but not commenced, was 91.2% compared to 93.0% as of December 31, 2021. We signed office leases in Manhattan encompassing approximately 2.1 million square feet, of which approximately 0.8 million square feet represented office leases that replaced previously occupied space.
Leasing and Operating As of December 31, 2023, our same-store Manhattan office property occupancy inclusive of leases signed but not commenced, was 90.0% compared to 91.2% as of December 31, 2022. We signed office leases in Manhattan encompassing approximately 1.8 million square feet, of which approximately 1.2 million square feet represented office leases that replaced previously occupied space.
Comparison of the year ended December 31, 2021 to the year ended December 31, 2020 For a comparison of the year ended December 31, 2021 to the year ended December 31, 2020, 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, 2021, which was filed with the SEC on February 18, 2022.
Comparison of the year ended December 31, 2022 to the year ended December 31, 2021 For a comparison of the year ended December 31, 2022 to the year ended December 31, 2021, 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, 2022, which was filed with the SEC on February 17, 2023.
Business - Highlights from 2022." 34 Table of Contents Critical Accounting Policies and Estimates 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.
Business - Highlights from 2023." 33 Table of Contents Critical Accounting Policies and Estimates 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.
Write offs of accrued interest receivables are recognized as an expense for loan loss and other investment reserves. 39 Table of Contents Results of Operations Comparison of the year ended December 31, 2022 to the year ended December 31, 2021 The following comparison for the year ended December 31, 2022, or 2022, to the year ended December 31, 2021, or 2021, makes reference to the effect of the following: i.
Write offs of accrued interest receivables are recognized as an expense for loan loss and other investment reserves. 38 Table of Contents Results of Operations Comparison of the year ended December 31, 2023 to the year ended December 31, 2022 The following comparison for the year ended December 31, 2023, or 2023, to the year ended December 31, 2022, or 2022, makes reference to the effect of the following: i.
(Loss) gain on sale of real estate, net During the year ended December 31, 2022, we recognized losses on the sales of 609 Fifth Avenue ($80.2 million), 885 Third Avenue ($24.0 million) and 707 Eleventh Avenue ($0.8 million), offset by a gain on the sale of 1080 Amsterdam Avenue ($17.9 million).
During the year ended December 31, 2022, we recognized losses on the sales of 609 Fifth Avenue ($80.2 million), 885 Third Avenue ($24.0 million) and 707 Eleventh Avenue ($0.8 million), offset by a gain on the sale of 1080 Amsterdam Avenue ($17.9 million).
As of December 31, 2022, 6.3 million fungible units were available for issuance under the 2005 Plan after reserving for shares underlying outstanding restricted stock units and phantom stock units granted pursuant to our Non-Employee Directors' Deferral Program and LTIP Units.
As of December 31, 2023, 3.9 million fungible units were available for issuance under the 2005 Plan after reserving for shares underlying outstanding restricted stock units and phantom stock units granted pursuant to our Non-Employee Directors' Deferral Program and LTIP Units.
Purchase price and other fair value adjustments During the year ended December 31, 2022, we recorded a $6.4 million fair value adjustment related to an investment in marketable securities and a $1.7 million fair value adjustment related to derivatives that are not designated as hedges.
During the year ended December 31, 2022, we recorded a $6.4 million fair value adjustment related to an investment in marketable securities and a $1.7 million fair value adjustment related to derivatives that are not designated as hedges.
We assess for impairment indicators based on factors such as, among other things, market conditions, occupancy rates, rental payment collections, and operating performance of the asset.
We assess for impairment indicators based on factors such as, among other things, market conditions, occupancy rates, collections, and the overall operating performance of the asset.
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. 49 Table of Contents Interest Rate Risk We are exposed to changes in interest rates primarily from our variable rate debt.
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.
“Same-Store Properties,” which represents all operating properties owned by us at January 1, 2021 and still owned by us in the same manner as of December 31, 2022 (Same-Store Properties totaled 20 of our 28 consolidated operating properties), ii.
“Same-Store Properties,” which represents all operating properties owned by us at January 1, 2022 and still owned by us in the same manner as of December 31, 2023 (Same-Store Properties totaled 20 of our 27 consolidated operating properties), ii.
Income earned from the profit participation, which is included in Other income on the consolidated statements of operations, was $1.4 million, $1.7 million and $1.4 million for the years ended December 31, 2022, 2021 and 2020, respectively.
Income earned from the profit participation prior to 2023, which is included in Other income on the consolidated statements of operations, was $1.4 million and $1.7 million for the years ended December 31, 2022 and 2021, respectively.
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 securities mature in 2035 and bear interest at a floating rate of 26 basis points over the three-month Term SOFR. 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 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, 2022, 2021, and 2020, respectively (dollars in thousands): Year Ended December 31, 2022 2021 2020 Shares of common stock issued 10,839 10,387 16,181 Dividend reinvestments/stock purchases under the DRSPP $ 525 $ 738 $ 1,006 Fifth Amended and Restated 2005 Stock Option and Incentive Plan The Fifth Amended and Restated 2005 Stock Option and Incentive Plan, or the 2005 Plan, was approved by the Company's Board of Directors in April 2022 and its stockholders in June 2022 at the Company's annual meeting of stockholders.
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, 2023, 2022, and 2021, respectively (dollars in thousands): Year Ended December 31, 2023 2022 2021 Shares of common stock issued 17,180 10,839 10,387 Dividend reinvestments/stock purchases under the DRSPP $ 525 $ 525 $ 738 Fifth Amended and Restated 2005 Stock Option and Incentive Plan The Fifth Amended and Restated 2005 Stock Option and Incentive Plan, or the 2005 Plan, was approved by the Company's Board of Directors in April 2022 and its stockholders in June 2022 at the Company's annual meeting of stockholders.
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.
In instances where there were more than two ratings and the difference between the highest and the lowest were two or more rating categories, then the applicable rating used was the average of the highest two, rounded down if the average was not a recognized category.
As of December 31, 2022, the 2022 term loan bore interest at a spread over adjusted Term SOFR plus 10 basis points, ranging from 100 basis points to 180 basis points, in each case based on the credit rating assigned to the senior unsecured long-term indebtedness of the Company.
The 2022 term loan bore interest at a spread over adjusted Term SOFR plus 0.001 basis points, ranging from 100 basis points to 180 basis points, in each case based on the credit rating assigned to the senior unsecured long-term indebtedness of the Company.
For the years ended December 31, 2022 and 2021, the weighted average balance of our debt and preferred equity investment portfolio and the weighted average yield were $1.0 billion and 8.3%, respectively, compared to $1.1 billion and 7.1%, respectively.
For the years ended December 31, 2023 and 2022, the weighted average balance of our debt and preferred equity investment portfolio and the weighted average yield were $0.6 billion and 6.2%, respectively, compared to $1.0 billion and 8.3%, respectively.
As of December 31, 2022, 64,380,082 shares of common stock and no shares of excess stock were issued and outstanding. Share Repurchase Program In August 2016, our Board of Directors approved a $1.0 billion share repurchase program under which we could buy shares of our common stock.
As of December 31, 2023, 64,726,253 shares of common stock and no shares of excess stock were issued and outstanding. Share Repurchase Program In August 2016, our Board of Directors approved a $1.0 billion share repurchase program under which we could buy shares of our common stock.
Certain of our debt and equity investments and other investments, with carrying values of $144.1 million as of December 31, 2022 and $295.0 million as of December 31, 2021, are variable rate investments, which mitigate our exposure to interest rate changes on our unhedged variable rate debt.
Certain of our debt and equity investments and other investments, with carrying values of $168.7 million as of December 31, 2023 and $144.1 million as of December 31, 2022, are variable rate investments, which mitigate our exposure to interest rate changes on our unhedged variable rate debt.
As of December 31, 2022, we had $2.0 million of outstanding letters of credit, $450.0 million drawn under the revolving credit facility and $1.25 billion outstanding under the term loan facilities, with total undrawn capacity of $800.0 million under the 2021 credit facility.
As of December 31, 2023, we had $2.0 million of outstanding letters of credit, $560.0 million drawn under the revolving credit facility and $1.25 billion outstanding under the term loan facilities, with total undrawn capacity of $688.0 million under the 2021 credit facility.
Inclusive of the mitigating effect of these investments, the net ratio of our variable rate debt to total debt was 7.0% and 13.4% as of December 31, 2022 and 2021, respectively.
Inclusive of the mitigating effect of these investments, the net ratio of our variable rate debt to total debt was 3.0% and 7.0% as of December 31, 2023 and 2022, respectively.
Our long-term debt of $5.0 billion bears interest at fixed rates, and therefore the fair value of these instruments is affected by changes in the market interest rates.
Our consolidated long-term debt of $3.2 billion bears interest at fixed rates, and therefore the fair value of these instruments is affected by changes in the market interest rates.
As of December 31, 2022, there were 192,638 phantom stock units outstanding pursuant to our Non-Employee Director's Deferral Program. 46 Table of Contents Employee Stock Purchase Plan In 2007, the Company's Board of Directors adopted the 2008 Employee Stock Purchase Plan, or ESPP, to provide equity-based incentives to eligible employees.
As of December 31, 2023, there were 230,295 phantom stock units outstanding pursuant to our Non-Employee Director's Deferral Program. 45 Table of Contents Employee Stock Purchase Plan In 2007, the Company's Board of Directors adopted the 2008 Employee Stock Purchase Plan, or ESPP, to provide equity-based incentives to eligible employees.
Mortgage Financing As of December 31, 2022, our total mortgage debt (excluding our share of joint venture mortgage debt of $6.2 billion) consisted of $3.2 billion of fixed rate debt, including swapped variable rate debt, with an effective weighted average interest rate of 4.44% and $0.1 billion of variable rate debt with an effective weighted average interest rate of 3.72%. 47 Table of Contents Corporate Indebtedness 2021 Credit Facility In December 2021, we entered into an amended and restated credit facility, referred to as the 2021 credit facility, that was previously amended by the Company in November 2017, or the 2017 credit facility, and was originally entered into by the Company in November 2012, or the 2012 credit facility.
Mortgage Financing As of December 31, 2023, our total mortgage debt (excluding our share of joint venture mortgage debt of $7.4 billion) consisted of $1.4 billion of fixed rate debt, including swapped variable rate debt, with an effective weighted average interest rate of 4.84% and $0.1 billion of variable rate debt with an effective weighted average interest rate of 6.05%. 46 Table of Contents Corporate Indebtedness 2021 Credit Facility In December 2021, we entered into an amended and restated credit facility, referred to as the 2021 credit facility, that was previously amended by the Company in November 2017, and was originally entered into by the Company in November 2012.
As of December 31, 2022 and December 31, 2021, the revolving credit facility had a carrying value of $443.2 million and $381.3 million, respectively, net of deferred financing costs. As of December 31, 2022 and December 31, 2021, the term loan facilities had a carrying value of $1.2 billion and $1.2 billion, respectively, net of deferred financing costs.
As of December 31, 2023 and December 31, 2022, the revolving credit facility had a carrying value of $554.8 million and $443.2 million, respectively, net of deferred financing costs. As of December 31, 2023 and December 31, 2022, the term loan facilities had a carrying value of $1.2 billion and $1.2 billion, respectively, net of deferred financing costs.
Liquidity and Capital Resources We currently expect that the 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).
Liquidity and Capital Resources We currently expect that the 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). 42 Table of Contents 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.
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.
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.
Based on the debt outstanding as of December 31, 2022, 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 $3.5 million and would increase our share of joint venture annual interest cost by $6.5 million.
Based on the debt outstanding as of December 31, 2023, 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 $1.0 million and would increase our share of joint venture annual interest cost by $12.2 million.
The variable rate debt shown above generally bears interest at an interest rate based on 30-day LIBOR (4.39% and 0.10% as of December 31, 2022 and 2021, respectively), and adjusted Term SOFR (4.30% and 0.05% as of December 31, 2022 and 2021, respectively).
The variable rate debt shown above generally bears interest at an interest rate based on 30-day LIBOR (0.00% and 4.39% as of December 31, 2023 and 2022, respectively), and adjusted Term SOFR (5.35% and 4.30% as of December 31, 2023 and 2022, respectively).
We expect our share of capital expenditures at our joint venture properties will be $263.1 million, of which $160.7 million will be funded by construction financing facilities or loan reserves. We expect to fund capital expenditures from operating cash flow, existing liquidity, and borrowings from construction financing facilities.
We expect our share of capital expenditures at our joint venture properties will be $183.6 million, of which $99.2 million will be funded by construction financing facilities or loan reserves. We expect to fund capital expenditures from operating cash flow, existing liquidity, and borrowings from construction financing facilities.
During the year ended December 31, 2022, 27,436 phantom stock units and 9,571 shares of common stock were issued to our Board of Directors. We recorded compensation expense of $2.7 million during the year ended December 31, 2022 related to the Deferred Compensation Plan.
During the year ended December 31, 2023, 39,302 phantom stock units and 27,739 shares of common stock were issued to our Board of Directors. We recorded compensation expense of $2.7 million during the year ended December 31, 2023 related to the Deferred Compensation Plan.
The ESPP was approved by our stockholders at our 2008 annual meeting of stockholders. As of December 31, 2022, 191,845 shares of our common stock had been issued under the ESPP.
The ESPP was approved by our stockholders at our 2008 annual meeting of stockholders. As of December 31, 2023, 224,159 shares of our common stock had been issued under the ESPP.
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 were either only two ratings available or where there was more than two and the difference between them was one rating category, the applicable rating was the highest rating.
(2) Issued by the Company and the Operating Partnership as co-obligors. (3) Issued by the Operating Partnership with the Company as the guarantor.
(2) Issued by the Company and the Operating Partnership as co-obligors.
We have conducted climate-related scenario analyses as part of our first Task Force on Climate-related Financial Disclosures ("TCFD") report published in 2021, which we made available on our website. The Company is also committed to setting near-term Scope 1 and Scope 2 science-based emissions reduction targets with the SBTi, which are currently in the validation process.
We have conducted climate-related scenario analyses as part of our first Task Force on Climate-related Financial Disclosures ("TCFD") report published in 2021 and 2023, which we made available on our website. The Company has committed to near-term Scope 1 and Scope 2 science-based emissions reduction targets with the SBTi, which were approved in early 2023.
This liquidity excludes $143.8 million representing our share of cash at unconsolidated joint venture properties.
This liquidity excludes $161.9 million representing our share of cash at unconsolidated joint venture properties.
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 $384.1 million and $337.0 million as of December 31, 2022 and 2021, respectively, representing a increase of $47.1 million.
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 $335.5 million and $384.1 million as of December 31, 2023 and 2022, respectively, representing a decrease of $48.6 million.
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.
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.
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.
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.
Our variable rate debt and variable rate joint venture debt as of December 31, 2022 bore interest based on a spread to LIBOR of 145 basis points to 340 basis points, and adjusted Term SOFR of 115 basis points to 577 basis points. Off-Balance Sheet Arrangements We have off-balance sheet investments, including joint ventures and debt and preferred equity investments.
Our variable rate debt and variable rate joint venture debt as of December 31, 2023 bore interest based on a spread to LIBOR of 145 basis points and Term SOFR of 50 basis points to 565 basis points. 48 Table of Contents Off-Balance Sheet Arrangements We have off-balance sheet investments, including joint ventures and debt and preferred equity investments.
We do not believe that the values of any of our equity investments were impaired as of December 31, 2022. 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.
Aside from charges noted in Note 6, "Investment in Unconsolidated Joint Ventures," we do not believe that the values of any of our equity investments were impaired as of December 31, 2023. 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.
“Acquisition Properties,” which represents all properties or interests in properties acquired in 2022 and 2021 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 2022 and 2021, and iv.
“Acquisition Properties,” which represents all properties or interests in properties acquired in 2023 and 2022 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 2023 and 2022, iv. "Alternative Strategy Portfolio," which represents non-core assets, and v.
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. 45 Table of Contents As of December 31, 2022, share repurchases, excluding the redemption of OP units, executed under the program were as follows: Period Shares repurchased Average price paid per share Cumulative number of shares repurchased as part of the repurchase plan or programs Year ended 2017 7,865,206 $107.81 7,865,206 Year ended 2018 9,187,480 $102.06 17,052,686 Year ended 2019 4,333,260 $88.69 21,385,946 Year ended 2020 8,276,032 $64.30 29,661,978 Year ended 2021 4,474,649 $75.44 34,136,627 Year ended 2022 1,971,092 $76.69 36,107,719 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 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. 44 Table of Contents The following table summarizes share repurchases executed under the program, excluding the redemption of OP units, for the years ended December 31, 2023, 2022 and 2021 as follows: Period Shares repurchased Average price paid per share Cumulative number of shares repurchased as part of the repurchase plan or programs Year ended 2021 4,474,649 $75.44 34,136,627 Year ended 2022 1,971,092 $76.69 36,107,719 Year ended 2023 — $— 36,107,719 Dividend Reinvestment and Stock Purchase Plan ("DRSPP") In February 2021 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.
Future property acquisitions may require substantial capital investments for refurbishment and leasing costs. As of December 31, 2022, we had liquidity of $1.0 billion, comprised of $800.0 million of availability under our revolving credit facility and $214.5 million of consolidated cash on hand, inclusive of $11.2 million of marketable securities.
Future property acquisitions may require substantial capital investments for refurbishment and leasing costs. As of December 31, 2023, we had liquidity of $0.9 billion, comprised of $688.0 million of availability under our revolving credit facility and $231.4 million of consolidated cash on hand, inclusive of $9.6 million of marketable securities.
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.
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.
As of December 31, 2022, the applicable spread over adjusted Term SOFR plus 10 basis points was 105 basis points for the revolving credit facility, 120 basis points for Term Loan A, and 125 basis points for Term Loan B.
As of December 31, 2023, the applicable spread over adjusted Term SOFR plus 10 basis points for the 2021 credit facility was 140 basis points for the revolving credit facility, 160 basis points for Term Loan A, and 165 basis points for Term Loan B.
Belmont and Ticonderoga provide coverage solely on properties owned by the Company or its affiliates. 51 Table of Contents 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.
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.
Our consolidated debt as of December 31, 2022 had a weighted average term to maturity of 3.76 years.
Our consolidated debt as of December 31, 2023 had a weighted average term to maturity of 2.69 years.
As of December 31, 2022, the 2022 term loan consisted of a $400.0 million term loan with a maturity date of October 6, 2023. The 2022 term loan has one six-month as-of-right extension option to April 6, 2024.
The 2022 term loan was repaid in full in September 2023. The 2022 term loan consisted of a $425.0 million term loan with a maturity date of October 6, 2023. The 2022 term loan had one six-month as-of-right extension option to April 6, 2024.
As of December 31, 2022, $144.1 million, or 23.1%, of our $0.6 billion debt and preferred equity portfolio was 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.
As of December 31, 2023, $168.7 million, or 90.5%, of our $346.7 million debt and preferred equity portfolio was indexed to SOFR. We recognize most derivatives on the balance sheet at fair value. Derivatives that are not hedges are adjusted to fair value through income.
During the year ended December 31, 2022, when compared to the year ended December 31, 2021, we used cash primarily for the following investing activities (in thousands): Acquisitions of real estate $ 88,300 Capital expenditures and capitalized interest 1,716 Joint venture investments (95,646) Distributions from joint ventures (628,862) Proceeds from sales of real estate/partial interest in property (25,230) Cash and restricted cash assumed from acquisition of real estate investment 60,494 Cash assumed from consolidation of real estate investment (9,475) Debt and preferred equity and other investments 40,927 Decrease in net cash provided by investing activities $ (567,776) Funds spent on capital expenditures, which are comprised of building and tenant improvements, decreased from $302.5 million for the year ended December 31, 2021 to $300.8 million for the year ended December 31, 2022 due to lower costs incurred in connection with our development and redevelopment properties.
During the year ended December 31, 2023, when compared to the year ended December 31, 2022, we used cash primarily for the following investing activities (in thousands): Acquisitions of real estate $ 64,491 Capital expenditures and capitalized interest 41,107 Joint venture investments 37 Distributions from joint ventures (1,173) Proceeds from disposition of real estate/joint venture interest (68,753) Cash and restricted cash assumed from acquisition of real estate investment (60,494) Debt and preferred equity and other investments (229,675) Decrease in net cash provided by investing activities $ (254,460) Funds spent on capital expenditures, which are comprised of building and tenant improvements, decreased from $300.8 million for the year ended December 31, 2022 to $259.7 million for the year ended December 31, 2023 due to lower costs incurred in connection with our development and redevelopment properties.
December 31, Debt Summary: 2022 2021 Balance Fixed rate $ 2,695,814 $ 1,974,324 Variable rate—hedged 2,320,000 1,300,000 Total fixed rate 5,015,814 3,274,324 Total variable rate 520,148 801,051 Total debt $ 5,535,962 $ 4,075,375 Debt, preferred equity, and other investments subject to variable rate 144,056 294,970 Net exposure to variable rate debt 376,092 506,081 Percent of Total Debt : Fixed rate 90.6 % 80.3 % Variable rate (1) 9.4 % 19.7 % Total 100.0 % 100.0 % Effective Interest Rate for the Year: Fixed rate 3.60 % 3.14 % Variable rate 3.23 % 2.11 % Effective interest rate 3.55 % 3.02 % (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 7.0% and 13.4% as of December 31, 2022 and December 31, 2021, respectively.
Debt Summary: December 31, 2023 December 31, 2022 Balance Fixed rate $ 1,117,386 $ 2,695,814 Variable rate—hedged 2,120,000 2,320,000 Total fixed rate 3,237,386 5,015,814 Total variable rate 270,000 520,148 Total debt $ 3,507,386 $ 5,535,962 Debt, preferred equity, and other investments subject to variable rate 168,745 144,056 Net exposure to variable rate debt 101,255 376,092 Percent of Total Debt : Fixed rate 92.3 % 90.6 % Variable rate (1) 7.7 % 9.4 % Total 100.0 % 100.0 % Effective Interest Rate for the Year: Fixed rate 4.68 % 3.60 % Variable rate 6.11 % 3.23 % Effective interest rate 4.71 % 3.55 % (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 3.0% and 7.0% as of December 31, 2023 and December 31, 2022, respectively.
Overall average asking rents in Manhattan increased in 2022 by 2.8% from $69.67 per square foot as of December 31, 2021 to $71.62 per square foot as of December 31, 2022, while Manhattan Class A asking rents increased to $78.72 per square foot, up 3.2% from $76.29 as of December 31, 2021.
Overall average asking rents in Manhattan increased in 2023 by 2.4% from $71.62 per square foot as of December 31, 2022 to $73.33 per square foot as of December 31, 2023, while Manhattan Class A asking rents increased to $80.98 per square foot, up 2.9% from $78.72 as of December 31, 2022.
Loan loss and other investment reserves, net of recoveries During the year ended December 31, 2022, we did not recognize any loan loss and other investment reserves.
Loan loss and other investment reserves, net of recoveries During the year ended December 31, 2023, we recorded $6.9 million of loan loss reserve on one debt and preferred equity investment. During the year ended December 31, 2022, we did not recognize any loan loss and other investment reserves.
We record a gain or loss on sale of real estate assets when we no longer have a controlling financial interest in the entity owning the real estate, a contract exists with a third party and that third party has control of the assets acquired. 37 Table of Contents Investment income on debt and preferred equity investments is accrued based on the contractual terms of the instruments and when it is deemed collectible.
We record a gain or loss on sale of real estate assets when we no longer have a controlling financial interest in the entity owning the real estate, a contract exists with a third party and that third party has control of the assets acquired.
During 2022, our debt and preferred equity activities included funding of $100.5 million, inclusive of advances under future funding obligations, discount and fee amortization, and paid-in-kind interest, net of premium amortization, and $565.9 million of sales, redemptions and participations. For descriptions of significant activities in 2022, refer to "Part I, Item 1.
During 2023, our debt and preferred equity activities included $80.3 million, inclusive of advances under future funding obligations, discount and fee amortization, and paid-in-kind interest, net of premium amortization, and investments with a carrying value of $349.9 million that were transferred to equity ownership. For descriptions of significant activities in 2023, refer to "Part I, Item 1.
The weighted average consolidated debt balance outstanding was $4.6 billion for the year ended December 31, 2022, compared to $4.8 billion for the year ended December 31, 2021. The consolidated weighted average interest rate was 3.55% for the year ended December 31, 2022, as compared to 2.93% for the year ended December 31, 2021.
The consolidated weighted average interest rate was 4.71% for the year ended December 31, 2023 as compared to 3.55% for the year ended December 31, 2022.

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Item 7A. Quantitative and Qualitative Disclosures About Market Risk

Market Risk — interest-rate, FX, commodity exposure

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Biggest changeThe 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, 2022 (in thousands): Long Term Debt Fixed Rate Average Interest Rate Variable Rate Average Interest Rate 2023 $ 634,563 4.04 % $ 520,902 8.51 % 2024 738,175 3.83 % 156,480 9.15 % 2025 1,449,386 3.57 % 17,364 6.42 % 2026 226,207 3.18 % 17 6.00 % 2027 299,400 3.14 % 17 6.00 % Thereafter 2,130,301 2.86 % 103 6.02 % Total $ 5,478,032 3.68 % $ 694,883 8.78 % Fair Value $ 3,552,398 $ 1,987,218 55 Table of Contents The table below lists our consolidated derivative instruments, which are hedging variable rate debt, and their related fair values as of December 31, 2022 (in thousands): Asset Hedged Benchmark Rate Notional Value Strike Rate Effective Date Expiration Date Fair Value Interest Rate Swap Credit Facility LIBOR $ 100,000 0.212 % January 2021 January 2023 $ 333 Interest Rate Swap Credit Facility SOFR 400,000 0.184 % January 2022 February 2023 1,453 Interest Rate Swap Credit Facility SOFR 50,000 0.633 % February 2022 February 2023 158 Interest Rate Cap Mortgage SOFR 370,000 3.250 % December 2022 June 2023 2,471 Interest Rate Cap Mortgage SOFR 370,000 3.250 % December 2022 June 2023 (2,465) Interest Rate Swap Credit Facility SOFR 100,000 1.163 % November 2021 July 2023 2,133 Interest Rate Swap Credit Facility SOFR 200,000 1.133 % November 2021 July 2023 4,300 Interest Rate Cap Mortgage LIBOR 600,000 4.080 % September 2022 September 2023 (3,341) Interest Rate Cap Mortgage LIBOR 50,000 3.500 % October 2022 September 2023 505 Interest Rate Swap Credit Facility SOFR 200,000 4.739 % November 2022 November 2023 104 Interest Rate Cap Mortgage SOFR 196,717 3.500 % November 2022 November 2023 2,232 Interest Rate Cap Mortgage SOFR 196,717 3.500 % November 2022 November 2023 (2,225) Interest Rate Swap Credit Facility SOFR 150,000 2.700 % December 2021 January 2024 3,249 Interest Rate Swap Credit Facility SOFR 200,000 4.590 % November 2022 January 2024 593 Interest Rate Swap Credit Facility SOFR 200,000 4.511 % November 2022 January 2024 750 Interest Rate Swap Credit Facility SOFR 150,000 2.721 % December 2021 January 2026 5,848 Interest Rate Swap Credit Facility SOFR 200,000 2.762 % December 2021 January 2026 7,601 Interest Rate Swap Credit Facility SOFR 100,000 3.003 % February 2023 February 2027 3,264 Interest Rate Swap Credit Facility SOFR 100,000 2.833 % February 2023 February 2027 3,888 Interest Rate Swap Credit Facility SOFR 50,000 2.563 % February 2023 February 2027 2,441 Interest Rate Swap Credit Facility SOFR 200,000 2.691 % February 2023 February 2027 8,823 Interest Rate Swap Credit Facility SOFR 300,000 2.966 % July 2023 May 2027 7,514 Interest Rate Swap Mortgage SOFR 370,000 3.888 % November 2022 June 2027 (1,900) Interest Rate Swap Credit Facility SOFR 100,000 3.756 % January 2023 January 2028 (211) Total Consolidated Hedges $ 47,518 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.
Biggest changeThe 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, including as-of-right extension options, as of December 31, 2023 (in thousands): Long Term Debt Fixed Rate Average Interest Rate Variable Rate Average Interest Rate 2024 $ 524,511 4.12 % $ 1,298,467 8.10 % 2025 1,670,861 3.98 % — — % 2026 542,968 3.60 % — — % 2027 1,185,168 3.32 % — — % 2028 — 2.86 % — — % Thereafter 2,130,300 2.86 % — — % Total $ 6,053,808 3.76 % $ 1,298,467 8.10 % Fair Value $ 5,387,516 $ 1,292,853 53 Table of Contents The table below lists our consolidated derivative instruments, which are hedging variable rate debt, and their related fair values as of December 31, 2023 (in thousands): Asset Hedged Benchmark Rate Notional Value Strike Rate Effective Date Expiration Date Fair Value Interest Rate Swap Credit Facility SOFR $ 150,000 2.600 % December 2021 January 2024 $ 11 Interest Rate Swap Credit Facility SOFR 200,000 4.490 % November 2022 January 2024 5 Interest Rate Swap Credit Facility SOFR 200,000 4.411 % November 2022 January 2024 5 Interest Rate Cap Mortgage SOFR 370,000 3.250 % June 2023 June 2024 3,158 Interest Rate Cap Credit Facility SOFR 370,000 3.250 % June 2023 June 2024 (3,145) Interest Rate Swap Credit Facility SOFR 150,000 2.621 % December 2021 January 2026 4,011 Interest Rate Swap Credit Facility SOFR 200,000 2.662 % December 2021 January 2026 5,196 Interest Rate Swap Credit Facility SOFR 100,000 2.903 % February 2023 February 2027 2,281 Interest Rate Swap Credit Facility SOFR 100,000 2.733 % February 2023 February 2027 2,775 Interest Rate Swap Credit Facility SOFR 50,000 2.463 % February 2023 February 2027 1,781 Interest Rate Swap Credit Facility SOFR 200,000 2.591 % February 2023 February 2027 6,378 Interest Rate Swap Credit Facility SOFR 300,000 2.866 % July 2023 May 2027 7,306 Interest Rate Swap Credit Facility SOFR 150,000 3.524 % January 2024 May 2027 549 Interest Rate Swap Credit Facility SOFR 370,000 3.888 % November 2022 June 2027 (3,044) Interest Rate Swap Credit Facility SOFR 300,000 4.487 % November 2024 November 2027 (10,273) Interest Rate Swap Credit Facility SOFR 100,000 3.756 % January 2023 January 2028 (646) Total Consolidated Hedges $ 16,348 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 $61.5 million in the aggregate as of December 31, 2022. We also swapped certain floating rate debt at some of our joint ventures. These swaps represented an asset of $12.6 million in the aggregate as of December 31, 2022.
All such interest rate caps represented an asset of $30.7 million in the aggregate as of December 31, 2023. We also swapped certain floating rate debt at some of our joint ventures. These swaps represented an asset of $12.3 million in the aggregate as of December 31, 2023.
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, 2022 (in thousands): Long-Term Debt Debt and Preferred Equity Investments (1) Fixed Rate Average Interest Rate Variable Rate Average Interest Rate Amount Weighted Yield 2023 $ 255,827 4.37 % $ 10,148 6.02 % $ 446,532 6.44 % 2024 877,237 4.39 % 60,000 5.12 % 6,890 — % 2025 470,000 4.31 % — 4.36 % 30,000 8.52 % 2026 — 4.26 % — 2.15 % — — % 2027 3,262,750 4.81 % 450,000 — % 119,858 6.55 % Thereafter 150,000 4.84 % — — % 20,000 8.11 % Total $ 5,015,814 4.34 % $ 520,148 5.12 % $ 623,280 6.54 % Fair Value $ 4,784,691 $ 519,669 (1) Our debt and preferred equity investments had an estimated fair value ranging between $0.6 billion and $0.6 billion as of December 31, 2022.
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, 2023 (in thousands): Long-Term Debt Debt and Preferred Equity Investments (1) Fixed Rate Average Interest Rate Variable Rate Average Interest Rate Amount Weighted Yield 2024 $ 477,238 4.98 % $ 110,000 6.03 % $ 120,422 9.07 % 2025 470,000 4.82 % — 4.57 % 30,000 8.52 % 2026 190,148 4.72 % — 4.57 % 48,323 10.46 % 2027 2,000,000 4.74 % 160,000 4.55 % 128,000 6.55 % 2028 — 4.75 % — — % — — % Thereafter 100,000 4.92 % — — % 20,000 8.11 % Total $ 3,237,386 4.84 % $ 270,000 5.19 % $ 346,745 8.23 % Fair Value $ 3,184,338 $ 268,787 (1) Our debt and preferred equity investments had an estimated fair value of approximately $0.3 billion as of December 31, 2023.
Asset Hedged Benchmark Rate Notional Value Strike Rate Effective Date Expiration Date Fair Value Interest Rate Cap Mortgage LIBOR $ 23,000 4.750 % January 2021 January 2023 $ — Interest Rate Cap Mortgage LIBOR 220,000 4.000 % February 2022 February 2023 93 Interest Rate Cap Mortgage LIBOR 510,000 3.000 % December 2021 June 2023 4,220 Interest Rate Cap Mortgage SOFR 267,000 4.000 % July 2022 August 2023 1,289 Interest Rate Cap Mortgage SOFR 400,000 3.500 % September 2022 September 2023 3,839 Interest Rate Cap Mortgage LIBOR 1,075,000 4.080 % September 2022 September 2023 6,004 Interest Rate Cap Mortgage LIBOR 125,000 4.080 % September 2022 September 2023 698 Interest Rate Cap Mortgage SOFR 118,670 0.490 % February 2022 May 2024 22,669 Interest Rate Cap Mortgage SOFR 118,670 0.490 % February 2022 May 2024 22,652 Interest Rate Swap Mortgage SOFR 177,000 1.669 % December 2022 February 2026 12,576 Total Unconsolidated Hedges $ 74,040 56 Table of Contents
Asset Hedged Benchmark Rate Notional Value Strike Rate Effective Date Expiration Date Fair Value Interest Rate Cap Mortgage SOFR $ 220,000 4.000 % February 2023 February 2024 $ 318 Interest Rate Cap Mortgage SOFR 484,069 0.490 % February 2022 May 2024 8,331 Interest Rate Cap Mortgage SOFR 484,069 0.490 % February 2022 May 2024 8,330 Interest Rate Cap Mortgage SOFR 505,412 3.000 % June 2023 June 2024 4,948 Interest Rate Cap Mortgage SOFR 272,000 4.000 % August 2023 August 2024 1,675 Interest Rate Cap Mortgage SOFR 477,783 3.500 % September 2023 September 2024 5,213 Interest Rate Cap Mortgage SOFR 278,161 4.000 % May 2024 November 2024 948 Interest Rate Cap Mortgage SOFR 278,161 4.000 % May 2024 November 2024 948 Interest Rate Swap Mortgage SOFR 250,000 3.608 % April 2023 February 2026 1,819 Interest Rate Swap Mortgage SOFR 250,000 3.608 % April 2023 February 2026 1,818 Interest Rate Swap Mortgage SOFR 177,000 1.555 % December 2022 February 2026 8,686 Total Unconsolidated Hedges $ 43,034 54 Table of Contents

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