Overview
SL Green Realty Corp., which is referred to as SL Green or the Company, a Maryland corporation, and SL Green Operating Partnership, L.P., which is referred to as SLGOP or the Operating Partnership, a Delaware limited partnership, were formed in June 1997 for the purpose of combining the commercial real estate business of S.L. Green Properties, Inc. and its affiliated partnerships and entities. The Company is a self-managed real estate investment trust, or REIT, engaged in the ownership, management, operation, acquisition, development, redevelopment, repositioning and financing of commercial real estate properties, principally office properties, located in the New York metropolitan area, principally Manhattan. Unless the context requires otherwise, all references to "we," "our" and "us" means the Company and all entities owned or controlled by the Company, including the Operating Partnership.
The following discussion related to our consolidated financial statements should be read in conjunction with the financial statements appearing in this Quarterly Report on this Form 10-Q and in Item 8 of our Annual Report on Form 10-K for the year ended December 31, 2025.
As of June 30, 2026, we owned the following interests in properties in the New York metropolitan area, primarily in midtown Manhattan. Our investments located outside of Manhattan are referred to as the Suburban properties:
Consolidated Unconsolidated Total
Location Property Type Number of Buildings Approximate Square Feet Number of Buildings Approximate Square Feet Number of Buildings Approximate Square Feet Weighted Average Leased Occupancy (1)
Commercial:
Manhattan Office 17 10,102,852 10 13,868,633 27 23,971,485 94.8 %
Retail 3 338,545 1 12,719 4 351,264 86.5 %
Development/Redevelopment 5 (2) 1,220,951 — — 5 1,220,951 N/A
25 11,662,348 11 13,881,352 36 25,543,700 94.7 %
Suburban Office 6 732,800 — — 6 732,800 79.9 %
Total commercial properties 31 12,395,148 11 13,881,352 42 26,276,500 94.2 %
Residential:
Manhattan Residential 1 222,855 1 221,884 2 444,739 99.4 %
Total core portfolio 32 12,618,003 12 14,103,236 44 26,721,239 94.3 %
Alternative Strategy Portfolio — — 4 2,492,157 4 2,492,157 58.7 %
(1)The weighted average leased occupancy for commercial properties represents the total leased square feet divided by the total square footage at acquisition. The weighted average leased occupancy for residential properties represents the total leased units divided by the total available units. Properties under construction are not included in the calculation of weighted average leased occupancy.
(2)As of June 30, 2026, we consolidated a building at 315 West 33rd Street that was comprised of approximately 222,855 square feet (unaudited) of residential space and approximately 270,132 square feet (unaudited) of retail space. For the purpose of this report, we have included this building in the number of residential properties we own. We have included only the residential square footage in total residential square footage, and have included the retail square footage in total retail square footage.
As of June 30, 2026, we also managed four properties owned by third parties encompassing approximately 0.9 million square feet (unaudited).
Critical Accounting Estimates
Refer to the 2025 Annual Report on Form 10-K of the Company and the Operating Partnership for a discussion of our critical accounting estimates, which include investment in commercial real estate properties and investment in unconsolidated joint ventures. During the three and six months ended June 30, 2026, there were no material changes to these estimates.
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Results of Operations
Comparison of the three months ended June 30, 2026 to the three months ended June 30, 2025
The following comparison for the three months ended June 30, 2026, or 2026, to the three months ended June 30, 2025, or 2025, makes reference to the effect of the following:
i.“Same-Store Properties,” which represents properties in service and operating during both the current and prior year reporting periods that are located in Manhattan (Same-Store Properties totaled 17 of our 32 consolidated operating buildings),
ii.“Acquisition Properties,” which represents all properties or interests in properties acquired in 2026 and 2025 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 2026 and 2025,
iv."Alternative Strategy Portfolio," which represents non-core assets, and
v.“Other,” which represents properties where we sold an interest resulting in deconsolidation and corporate level items not allocable to specific properties, as well as the Service Corporation and eEmerge Inc.
Same-Store Disposed Other Consolidated
(in millions) 2026 2025 $ Change % Change 2026 2025 2026 2025 2026 2025 $ Change % Change
Rental revenue $ 144.7 $ 153.6 $ (8.9) (5.8) % $ — $ — $ 47.2 $ 11.6 $ 191.9 $ 165.2 $ 26.7 16.2 %
SUMMIT Operator revenue — — — — % — — 31.5 31.0 31.5 31.0 0.5 1.6 %
Investment income — — — — % — — 2.7 6.3 2.7 6.3 (3.6) (57.1) %
Interest income from real estate loans held by consolidated securitization vehicles — — — — % — — 14.7 21.0 14.7 21.0 (6.3) (30.0) %
Fee income — — — — % — — 19.4 12.2 19.4 12.2 7.2 59.0 %
Other income 3.2 0.9 2.3 255.6 % — — 0.6 5.2 3.8 6.1 (2.3) (37.7) %
Total revenues 147.9 154.5 (6.6) (4.3) % — — 116.1 87.3 264.0 241.8 22.2 9.2 %
Property operating expenses 78.0 80.3 (2.3) (2.9) % — — 31.6 14.5 109.6 94.8 14.8 15.6 %
SUMMIT Operator expenses — — — — % — — 25.5 24.8 25.5 24.8 0.7 2.8 %
Transaction related costs — — — — % — — — 0.2 — 0.2 (0.2) (100.0) %
Marketing, general and administrative — — — — % — — 22.8 21.6 22.8 21.6 1.2 5.6 %
78.0 80.3 (2.3) (2.9) % — — 79.9 61.1 157.9 141.4 16.5 11.7 %
Operating income (loss) before equity in net income from unconsolidated joint ventures $ 69.9 $ 74.2 $ (4.3) (5.8) % $ — $ — $ 36.2 $ 26.2 $ 106.1 $ 100.4 $ 5.7 5.7 %
Other income (expenses):
Interest expense, net of interest income (56.2) (47.1) (9.1) 19.3 %
SUMMIT Operator tax (expense) benefit (1.2) (1.5) 0.3 (20.0) %
Interest expense on senior obligations of consolidated securitization vehicles (14.7) (21.0) 6.3 (30.0) %
Depreciation and amortization (67.3) (60.2) (7.1) 11.8 %
Equity in net income (loss) from unconsolidated joint ventures 14.9 (22.8) 37.7 (165.4) %
Equity in net loss on sale of interest in unconsolidated joint venture/real estate — (1.9) 1.9 (100.0) %
Income from debt fund investments, net 6.0 0.6 5.4 900.0 %
Purchase price and other fair value adjustments 5.7 (9.6) 15.3 (159.4) %
(Loss) gain on sale of real estate, net (4.2) (0.2) (4.0) 2,000.0 %
Loan loss and other investment reserves, net of recoveries — 46.3 (46.3) (100.0) %
Gain on sale of marketable securities — 10.2 (10.2) (100.0) %
Net loss $ (10.9) $ (6.8) $ (4.1) 60.3 %
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Rental revenue
Rental revenues increased due primarily to the acquisition of Park Avenue Tower ($18.4 million) during the first quarter of 2026, the consolidation of 315 West 33rd Street ($9.1 million) during the third quarter of 2025, and the consolidation of 800 Third Avenue ($8.8 million) during the fourth quarter of 2025. Additionally, there was an increase in rental revenue from our Same-Store Properties, excluding 100 Park Avenue, of $1.2 million due to an increase in economic occupancy. This increase is partially offset by the deconsolidation of 100 Park Avenue ($10.1 million) at the end of the fourth quarter of 2025.
Investment income
Investment income decreased due primarily to a lower weighted average debt and preferred equity investment balance for the three months ended June 30, 2026, as compared to the same period in 2025. For the three months ended June 30, 2026, the weighted average debt and preferred equity investment balance outstanding and weighted average yield were $113.1 million and 7.5%, respectively, as compared to $319.9 million and 5.6%, respectively, for the three months ended June 30, 2026.
Interest income from real estate loans held by consolidated securitization vehicles
From time to time we own securities in CMBS securitization trusts that result in the consolidation of the trusts on our financial statements. The amounts recorded include our interest income as well as the interest income associated with CMBS positions owned by third parties, which is offset by the amounts recorded in "Interest expense on senior obligations of consolidated securitization vehicles." As a result, the net impact is limited to the interest income on the CMBS we own directly and not the consolidated interest income and interest expense.
Fee income
Fee income increased due primarily to fees received in conjunction with the partial sale of 346 Madison Avenue ($4.2 million) and the sale of 7 Dey Street ($2.1 million).
Property operating expenses
Property operating expenses increased due primarily to the acquisition of Park Avenue Tower ($6.4 million) during the first quarter of 2026, the consolidation of 800 Third Avenue ($5.2 million) during the fourth quarter of 2025, and the consolidation of 315 West 33rd Street ($4.7 million) during the third quarter of 2025. This increase is partially offset by the deconsolidation of 100 Park Avenue ($6.4 million) at the end of the fourth quarter of 2025.
Marketing, general and administrative
Marketing, general, and administrative expenses increased due primarily to higher compensation expenses.
Interest expense, net of interest income
Interest expense, net of interest income, increased due primarily to the acquisition of Park Avenue Tower ($6.9 million) during the first quarter of 2026, the consolidation of 315 West 33rd Street ($3.1 million) during the third quarter of 2025, and the consolidation of 800 Third Avenue ($2.6 million) during the fourth quarter of 2025. These increases were offset by decreased interest expense from the deconsolidation of 100 Park Avenue ($6.3 million) at the end of the fourth quarter of 2025. The weighted average debt balance outstanding was $4.7 billion for three months ended June 30, 2026, compared to $3.8 billion for the three months ended June 30, 2025. The consolidated weighted average interest rate was 5.21% for the three months ended June 30, 2026, as compared to 5.38% for the three months ended June 30, 2025.
Interest expense on senior obligations of consolidated securitization vehicles
From time to time we own securities in CMBS securitization trusts that result in the consolidation of the trusts on our financial statements. The amounts include the interest expense associated with CMBS positions owned by third parties, which is an offset to the third-party interest income recognized in Interest income from real estate loans held by consolidated securitization vehicles. As a result, the impact is limited to interest income on the CMBS we own directly and not the consolidated interest income and interest expense.
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Depreciation and amortization
Depreciation and amortization increased due primarily to the acquisition of Park Avenue Tower ($8.3 million) during the first quarter of 2026, the consolidation of 800 Third Avenue ($2.9 million) during the fourth quarter of 2025, and the consolidation of 315 West 33rd Street ($2.2 million) during the third quarter of 2025. This increase is partially offset by the deconsolidation of 100 Park Avenue ($4.9 million) at the end of the fourth quarter of 2025.
Equity in net income (loss) from unconsolidated joint ventures
During the three months ended June 30, 2026, we recognized $26.6 million of income related to a reduction in the negative carrying value of an unconsolidated joint venture.
Equity in net loss on sale of interest in unconsolidated joint venture/real estate
During the three months ended June 30, 2026, we did not dispose of any interests in unconsolidated joint ventures. During the three months ended June 30, 2025, we recognized a loss on the sale of our interest in 85 Fifth Avenue ($1.9 million).
Income from debt fund investments, net
Income from debt fund investments increased due primarily to the continued deployment of capital in the Fund, resulting in a higher average invested balance and an increase in the fair value of its investments from $41.4 million at June 30, 2025 to $379.0 million at June 30, 2026.
Purchase price and other fair value adjustments
During the three months ended June 30, 2026, we recorded a $5.0 million positive fair value adjustment related to the deconsolidation of 346 Madison Avenue. During the three months ended June 30, 2025, we recorded a $13.0 million negative fair value adjustment related to the initial valuation of Palisades Conference Center and a $1.2 million negative fair value adjustment related to derivatives that are not designated as hedges for accounting purposes.
(Loss) gain on sale of real estate, net
During the three months ended June 30, 2026, we recognized a loss of $4.2 million on the sale of 7 Dey Street, offset by a gain of $1.3 million on the sale of a 49% interest in 346 Madison Avenue.
Loan loss and other investment reserves, net of recoveries
During the three months ended June 30, 2025, we recognized a loan loss recovery of $46.6 million related to the repayment of the commercial mortgage investment at 522 Fifth Avenue.
Gain on sale of marketable securities
During the three months ended June 30, 2025, we recognized a gain on the sale of marketable securities of $10.2 million.
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Comparison of the six months ended June 30, 2026 to the six months ended June 30, 2025
The following comparison for the six months ended June 30, 2026, or 2026, to the six months ended June 30, 2025, or 2025, makes reference to the effect of the following:
i.“Same-Store Properties,” which represents properties in service and operating during both the current and prior year reporting periods that are located in Manhattan (Same-Store Properties totaled 17 of our 32 consolidated operating properties),
ii.“Acquisition Properties,” which represents all properties or interests in properties acquired in 2026 and 2025 and all non-Same-Store Properties, including properties that are under development, redevelopment or were deconsolidated during the period,
iii."Disposed Properties," which represents all properties or interests in properties sold or partially sold in 2026 and 2025,
iv."Alternative Strategy Portfolio," which represents non-core assets, and
v.“Other,” which represents properties that were partially sold resulting in deconsolidation and corporate level items not allocable to specific properties, as well as the Service Corporation and eEmerge Inc.
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Same-Store Disposed Other Consolidated
(in millions) 2026 2025 $ Change % Change 2026 2025 2026 2025 2026 2025 $ Change % Change
Rental revenue $ 287.5 $ 306.6 $ (19.1) (6.2) % $ — $ — $ 91.3 $ 21.7 $ 378.8 $ 328.3 $ 50.5 15.4 %
SUMMIT Operator revenue — — — — % — — 55.7 53.5 55.7 53.5 2.2 4.1 %
Investment income — — — — % — — 5.0 22.5 5.0 22.5 (17.5) (77.8) %
Interest income from real estate loans held by consolidated securitization vehicles — — — — % — — 29.4 37.0 29.4 37.0 (7.6) (20.5) %
Fee income — — — — % — 39.4 24.5 39.4 24.5 14.9 60.8 %
Other income 2.9 5.4 (2.5) (46.3) % — — 5.9 10.6 8.8 16.0 (7.2) (45.0) %
Total revenues 290.4 312.0 (21.6) (6.9) % — — 226.7 169.8 517.1 481.8 35.3 7.3 %
Property operating expenses 157.2 165.8 (8.6) (5.2) % — 62.7 28.7 219.9 194.5 25.4 13.1 %
SUMMIT Operator expenses — — — — % — — 50.5 46.6 50.5 46.6 3.9 8.4 %
Transaction related costs — — — — % — — 0.3 0.5 0.3 0.5 (0.2) (40.0) %
Marketing, general and administrative — — — — % — — 45.6 43.3 45.6 43.3 2.3 5.3 %
157.2 165.8 (8.6) (5.2) % — — 159.1 119.1 316.3 284.9 31.4 11.0 %
Operating income (loss) before equity in net income from unconsolidated joint ventures $ 133.2 $ 146.2 $ (13.0) (8.9) % $ — $ — $ 67.6 $ 50.7 $ 200.8 $ 196.9 $ 3.9 2.0 %
Other income (expenses):
Interest expense, net of interest income (109.9) (94.4) (15.5) 16.4 %
SUMMIT Operator tax (expense) benefit (1.8) (1.5) (0.3) 20.0 %
Interest expense on senior obligations of consolidated securitization vehicles (29.4) (35.0) 5.6 (16.0) %
Depreciation and amortization (137.0) (124.7) (12.3) 9.9 %
Equity in net income (loss) from unconsolidated joint ventures (5.8) (21.6) 15.8 (73.1) %
Equity in net loss on sale of interest in unconsolidated joint venture/real estate (0.8) (1.9) 1.1 (57.9) %
Income from debt fund investments, net 8.5 0.6 7.9 1,316.7 %
Purchase price and other fair value adjustments 9.8 (19.2) 29.0 (151.0) %
(Loss) gain on sale of real estate, net 12.5 (0.6) 13.1 (2,183.3) %
Depreciable real estate reserves and impairments (35.2) (8.5) (26.7) 314.1 %
Loan loss and other investment reserves, net of recoveries — 71.3 (71.3) (100.0) %
Gain on sale of marketable securities — 10.2 (10.2) (100.0) %
Net loss (88.3) (28.4) (59.9) 210.9 %
Rental revenue
Rental revenues increased due primarily to the acquisition of Park Avenue Tower ($33.9 million) during the first quarter of 2026, the consolidation of 315 West 33rd Street ($18.1 million) during the third quarter of 2025, and the consolidation of 800 Third Avenue ($17.5 million) during the fourth quarter of 2025. Additionally, there was an increase in rental revenue from our Same-Store Properties, excluding 100 Park Avenue, of $1.0 million due to an increase in economic occupancy. This increase is partially offset by the deconsolidation of 100 Park Avenue ($20.1 million) at the end of the fourth quarter of 2025 and the sale of 690 Madison Avenue during the first quarter of 2026 ($1.3 million).
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SUMMIT Operator revenue
SUMMIT Operator revenues were higher due primarily to the Ascent experience coming back online during the fourth quarter of 2025, which is a premium ticket that generates incremental revenue.
Investment income
Investment income decreased due primarily to one CMBS investment ($10.0 million) that was sold during the six months ended June 30, 2025. Investment income also decreased due to a lower weighted average debt and preferred equity investment balance for the six months ended June 30, 2026 as compared to the same period in 2025. For the six months ended June 30, 2026, the weighted average debt and preferred equity investment balance outstanding and weighted average yield were $111.3 million and 7.5%, respectively, as compared to $326.5 million and 6.0%, respectively, for the six months ended June 30, 2025.
Interest income from real estate loans held by consolidated securitization vehicles
From time to time we own securities in CMBS securitization trusts that result in the consolidation of the trusts on our financial statements. The amounts recorded include our interest income as well as the interest income associated with CMBS positions owned by third parties, which is offset by the amounts recorded in "Interest expense on senior obligations of consolidated securitization vehicles." As a result, the net impact is limited to the interest income on the CMBS we own directly and not the consolidated interest income and interest expense.
Fee income
Fee income increased due primarily to fees received in conjunction with the partial sale of 346 Madison Avenue ($4.2 million), the sale of 7 Dey Street ($2.1 million) and an increase in special servicing fees ($2.6 million).
Other income
Other income decreased due primarily to lease termination income ($3.8 million) recognized during the six months ended June 30, 2025.
Property operating expenses
Property operating expenses increased due primarily to the acquisition of Park Avenue Tower ($12.7 million) during the first quarter of 2026, the consolidation of 800 Third Avenue ($10.3 million) during the fourth quarter of 2025, and the consolidation of 315 West 33rd Street ($8.8 million) during the third quarter of 2025. This increase is partially offset by the deconsolidation of 100 Park Avenue ($13.1 million) at the end of the fourth quarter of 2025.
SUMMIT Operator expenses
SUMMIT Operator expenses were higher due to increased variable expenses as a result of increased operating hours and the Ascent premium experience coming back online.
Marketing, general and administrative
Marketing, general, and administrative expenses increased due primarily to higher compensation expenses.
Interest expense, net of interest income
Interest expense, net of interest income, increased due primarily to the acquisition of Park Avenue Tower during the first quarter of 2026 ($12.3 million), the consolidation of 315 West 33rd Street ($6.2 million) during the third quarter of 2025, and the consolidation of 800 Third Avenue ($5.3 million) during the fourth quarter of 2025. These increases were offset by decreased interest expense from the deconsolidation of 100 Park Avenue ($12.5 million) at the end of the fourth quarter of 2025. The weighted average consolidated debt balance outstanding was $4.7 billion for the six months ended June 30, 2026, compared to $3.8 billion for the six months ended June 30, 2025. The consolidated weighted average interest rate was 4.88% for the six months ended June 30, 2026, as compared to 5.38% for the six months ended June 30, 2025.
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Interest expense on senior obligations of consolidated securitization vehicles
From time to time we own securities in CMBS securitization trusts that result in the consolidation of the trusts on our financial statements. The amounts include the interest expense associated with CMBS positions owned by third parties, which is an offset to the third party interest income recognized in "Interest income from real estate loans held by consolidated securitization vehicles." As a result, the impact is limited to interest income on the CMBS we own directly and not the consolidated interest income and interest expense.
Depreciation and amortization
Depreciation and amortization increased primarily due to the acquisition of Park Avenue Tower ($16.5 million) during the first quarter of 2026, the consolidation of 315 West 33rd Street ($6.6 million) during the third quarter of 2025, and the consolidation of 800 Third Avenue ($5.8 million) during the fourth quarter of 2025. This increase is partially offset by the disposition of 7 Dey Street ($3.2 million) during the second quarter of 2026, and the deconsolidation of 100 Park Avenue ($9.6 million) at the end of the fourth quarter of 2025.
Equity in net income (loss) from unconsolidated joint ventures
During the six months ended June 30, 2026, we recognized $26.6 million of income related to a reduction in the negative carrying value of an unconsolidated joint venture. During the six months ended June 30, 2025, we recognized $18.3 million of income related to the write-off of the negative carrying value of an unconsolidated joint venture after we were no longer obligated or otherwise committed to provide additional financial support to the entity.
Equity in net loss on sale of interest in unconsolidated joint venture/real estate
During the six months ended June 30, 2026, we did not dispose of any unconsolidated joint ventures. During the six months ended June 30, 2025, we recognized a loss on the sale of our interest in 85 Fifth Avenue ($1.9 million).
Income from debt fund investments, net
Income from debt fund investments increased due primarily to the continued deployment of capital in the Fund, resulting in a higher average invested balance and an increase in the fair value of its investments from $41.4 million at June 30, 2025 to $379.0 million at June 30, 2026.
Purchase price and other fair value adjustments
During the six months ended June 30, 2026, we recorded a $5.0 million positive fair value adjustment related to the deconsolidation of 346 Madison Avenue, a $2.4 million positive fair value adjustment related to derivatives that are not designated as hedges for accounting purposes, and a $2.2 million positive fair value adjustment related to the previous sale of an interest in One Madison Avenue, which did not meet sale accounting under ASC 860. During the six months ended June 30, 2025, we recorded a $13.0 million negative fair value adjustment related to the initial valuation of Palisades Conference Center and a $4.3 million negative fair value adjustment related to derivatives that are not designated as hedges for accounting purposes.
(Loss) gain on sale of real estate, net
During the six months ended June 30, 2026, we recognized a gain of $15.3 million on the sale of 690 Madison Avenue and a gain of $1.3 million on the sale of a 49% interest in 346 Madison Avenue. These gains were offset by a loss of $4.2 million on the sale of 7 Dey Street.
Depreciable real estate reserves and impairments
During the six months ended June 30, 2026, we recognized depreciable real estate reserves and impairments in connection with the classification of 7 Dey Street as held for sale ($35.2 million). During the six months ended June 30, 2025, we recognized depreciable real estate reserves and impairments related to the sale of residential condominium units at 760 Madison Avenue ($8.5 million).
Loan loss and other investment reserves, net of recoveries
During the six months ended June 30, 2025 we recognized a loan loss recovery of $71.6 million related to the repayment of the commercial mortgage investment at 522 Fifth Avenue.
Gain on sale of marketable securities
During the six months ended June 30, 2025, we recognized a gain on the sale of marketable securities of $10.2 million.
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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, dividends to shareholders, distributions to unitholders, repurchases or repayments of outstanding indebtedness or other investments will include:
(1)Cash flow from operations;
(2)Cash on hand;
(3)Net proceeds from divestitures of properties and redemptions, participations, dispositions and repayments of debt and preferred equity investments;
(4)Borrowings under the revolving credit facility;
(5)Other forms of secured or unsecured financing; and
(6)Proceeds from common or preferred equity or debt offerings by the Company or the Operating Partnership (including issuances of units of limited partnership interest in the Operating Partnership and Trust preferred securities).
Cash flow from operations is primarily dependent upon the collectability of rent, the occupancy level of our portfolio, the net effective rental rates achieved on our leases, the collectability of rent, operating escalations and recoveries from our tenants and the level of operating and other costs.
The combined aggregate principal maturities of mortgages and other loans payable, the 2026 Credit Facility, trust preferred securities, our share of joint venture debt, including as-of-right extension options, estimated interest expense, and our obligations under our financing and operating leases, as of June 30, 2026 are as follows (in thousands):
Remaining 2026 2027 2028 2029 2030 Thereafter Total
Property mortgages and other loans $ 365,000 $ 1,083,747 $ 80,000 $ 189,200 $ — $ 731,183 $ 2,449,130
Revolving credit facility — — — — — 850,000 850,000
Unsecured term loans 100,000 300,000 — — — 750,000 1,150,000
Trust preferred securities — — — — — 100,000 100,000
Financing leases 1,640 3,325 3,375 3,426 3,477 189,891 205,134
Operating leases 28,409 58,151 58,666 58,898 60,000 1,176,591 1,440,715
Estimated interest expense 124,762 181,262 150,254 136,327 113,272 253,538 959,415
Joint venture debt 739,298 1,781,817 555,449 — 840,000 2,071,051 5,987,615
Total $ 1,359,109 $ 3,408,302 $ 847,744 $ 387,851 $ 1,016,749 $ 6,122,254 $ 13,142,009
For the remainder of the year ending December 31, 2026, we estimate that we will incur $70.0 million of leasing capital expenditures and $25.2 million of recurring capital expenditures on existing consolidated properties, of which $22.0 million will be funded by construction financing facilities or loan reserves. In addition, we estimate that we will incur $41.2 million of development or redevelopment expenditures on existing consolidated properties, of which $2.4 million will be funded by construction financing facilities or loan reserves. We estimate that our share of capital expenditures at our joint venture properties will be $71.5 million, of which $24.5 million will be funded by construction financing facilities or loan reserves. Future property acquisitions may require substantial capital investments for refurbishment and leasing costs.
As of June 30, 2026, we had liquidity of $0.6 billion, comprised of $393.0 million of availability under our revolving credit facility and $202.1 million of consolidated cash on hand, inclusive of $21.3 million of available-for-sale marketable securities. This liquidity excludes $115.7 million representing our share of cash at unconsolidated joint venture properties. We may seek to divest of properties, interests in properties, or access private and public debt and equity capital when the opportunity presents itself, although there is no guarantee that this capital will be made available to us at efficient levels or at all. Management believes that these sources of liquidity, if we are able to access them, along with potential refinancing opportunities for secured and unsecured debt, will allow us to satisfy our debt and other obligations, as described above, upon maturity, if not before.
We have investments in several real estate joint ventures with various partners, that are generally considered to be financially stable, and most are financed with non-recourse debt. We believe that property level cash flows along with unfunded committed indebtedness and proceeds from the refinancing of outstanding secured indebtedness will be sufficient to fund the capital needs of our joint venture properties.
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Cash Flows
The following summary discussion of our cash flows is based on our consolidated statements of cash flows in "Item 1. Financial Statements" and is not meant to be an all-inclusive discussion of the changes in our cash flows for the periods presented below.
Cash, restricted cash, and cash equivalents were $381.7 million and $342.8 million as of June 30, 2026 and 2025, respectively, representing an increase of $38.9 million. The increase was a result of the following changes in cash flows (in thousands):
Six Months Ended June 30,
2026 2025 (Decrease) Increase
Net cash provided by operating activities $ 70,444 $ 61,198 $ 9,246
Net cash used in investing activities (521,393) (44,488) (476,905)
Net cash provided by (used in) financing activities 496,203 (5,531) 501,734
Our principal sources of operating cash flow are the properties in our consolidated and joint venture portfolios, third-party fees and our debt and preferred equity portfolio. 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 selectively invest in new projects that enable us to take advantage of our development, leasing, financing and property management skills and invest in existing buildings that meet our investment criteria. During the six months ended June 30, 2026, when compared to the six months ended June 30, 2025, we used cash primarily for the following investing activities (in thousands):
Acquisitions of real estate $ (551,691)
Capital expenditures and capitalized interest 7,054
Joint venture investments (23,136)
Distributions from joint ventures 137,934
Proceeds from sales of real estate/partial interest in property 256,497
Debt and preferred equity and other investments (303,563)
Increase in net cash used in investing activities $ (476,905)
Capital expenditures, which are comprised of building and tenant improvements, decreased from $136.1 million for the six months ended June 30, 2025 to $129.0 million for the six months ended June 30, 2026 due to decreased leasing related costs as portfolio occupancy increases.
We generally fund our investment activity through the sale of real estate, property-level financing, corporate credit facilities, the sale or repayment of debt and preferred equity investments, or construction loan facilities. From time to time, the Company may issue common or preferred stock or equity-linked securities, or the Operating Partnership may issue common or preferred units of limited partnership interest.
During the six months ended June 30, 2026, when compared to the six months ended June 30, 2025, we used cash primarily for the following financing activities (in thousands):
Proceeds from our debt obligations $ 1,001,524
Repayments of our debt obligations (641,036)
Net distribution to noncontrolling interests 173,090
Other financing activities (10,151)
Repurchase of common stock (14,068)
Other obligations related to secured borrowing (75,294)
Dividends and distributions paid 67,669
Increase in net cash provided by financing activities $ 501,734
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Share Repurchase Program
The Company has in place a share repurchase program of $3.5 billion under which we can buy shares of our common stock.
As of June 30, 2026, 36,390,839 shares have been repurchased under the program. This amount excludes the redemption of OP units. During the six months ended June 30, 2026, we repurchased 283,120 shares under the program.
Indebtedness
The table below summarizes our consolidated mortgages and other loans payable, the 2026 Credit Facility, and trust preferred securities outstanding as of June 30, 2026 and December 31, 2025, (amounts in thousands).
Debt Summary: June 30, 2026 December 31, 2025
Balance
Fixed rate $ 1,693,383 $ 1,058,524
Variable rate—hedged 1,926,325 2,616,698
Total fixed rate 3,619,708 3,675,222
Total variable rate 929,422 369,277
Total debt $ 4,549,130 $ 4,044,499
Debt, preferred equity, and other investments subject to variable rate $ 78,543 $ 128,619
Net exposure to variable rate debt 850,879 240,658
Percent of Total Debt:
Fixed rate 79.6 % 90.9 %
Variable rate (1) 20.4 % 9.1 %
Total 100.0 % 100.0 %
Effective Interest Rate for the Year:
Fixed rate 5.15 % 5.17 %
Variable rate 4.40 % 6.29 %
Effective interest rate 4.88 % 5.34 %
(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 19.0% and 6.1% as of June 30, 2026 and December 31, 2025, respectively.
The variable rate debt shown above generally bears interest at an interest rate based on Term SOFR (3.65% and 3.69% as of June 30, 2026 and December 31, 2025, respectively). Our consolidated debt as of June 30, 2026 had a weighted average term to maturity of 3.13 years.
Certain of our debt and equity investments and other investments, with carrying values of $78.5 million as of June 30, 2026 and $128.6 million as of December 31, 2025, are variable rate investments which mitigate our exposure to interest rate changes on our unhedged variable rate debt. Inclusive of the mitigating effect of these investments, the net ratio of our consolidated variable rate debt to total debt was 19.0% and 6.1% as of June 30, 2026 and December 31, 2025, respectively.
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Corporate Indebtedness
2026 Credit Facility
On March 18, 2026, the Company entered into an amended and restated credit facility (the "2026 Credit Facility"), which was previously amended in December 2021 and November 2017, and was originally entered into in November 2012. As of June 30, 2026, the 2026 Credit Facility consisted of a:
•$1.25 billion revolving credit facility with a maturity of June 2030 and two six-month, as-of-right extension options to June 2031.
•$300.0 million term loan (or the "Term A Loans") with a maturity of May 2027.
•$100.0 million term loan (or the "Term B Loans") with a maturity of November 2026.
•$750.0 million term loan (or the "Term C Loans") with a maturity of June 2031.
We also have an option, subject to customary conditions, to increase the capacity of the credit facility to $4.5 billion at any time prior to the maturity date of the revolving credit facility without the consent of existing lenders, by obtaining additional commitments from our existing lenders and other financial institutions.
As of June 30, 2026, the 2026 Credit Facility bore interest at a spread over Term SOFR with an interest period of one or three months, as we may elect, ranging from (i) 85 basis points to 185 basis points for loans under the revolving credit facility, (ii) 90 basis points to 170 basis points for the Term A Loans, (iii) 100 basis points to 180 basis points for the Term B Loans, and (iv) 95 basis points to 220 basis points for the Term C Loans, in each case based on the credit rating assigned to the senior unsecured long term indebtedness of the Company. In instances where there are either only two ratings available or where there are more than two and the difference between them is one rating category, the applicable rating shall be the highest rating. In instances where there are more than two ratings and the difference between the highest and the lowest is two or more rating categories, then the applicable rating used is the average of the highest two, rounded down if the average is not a recognized category. The revolving credit facility also contains a competitive bid option that allows banks that are part of the lender consortium to bid to make loan advances to us at a reduced interest rate. The 2026 Credit Facility provide for the ability to amend the 2026 Credit Facility to include a sustainability component whereby the revolving credit facility and Term C Loans pricing may improve by up to 3 basis points (depending on the sustainability rating achieved) upon the Company’s achievement of certain sustainability ratings, determined via an independent third-party evaluation.
As of June 30, 2026, the applicable spread over Term SOFR for the 2026 Credit Facility was 125 basis points for the revolving credit facility, 170 basis points for the Term A Loans, 180 basis points for the Term B Loans and 145 basis points for the Term C loans. We are required to pay quarterly in arrears a 20 to 45 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 June 30, 2026, the facility fee was 30 basis points.
As of June 30, 2026, we had $7.0 million of outstanding letters of credit, $850.0 million drawn under the revolving credit facility and $1.15 billion of outstanding term loans, with total undrawn capacity of $393.0 million under the 2026 Credit Facility. As of June 30, 2026 and December 31, 2025, the revolving credit facility had a carrying value of $839.7 million and $637.8 million, respectively, net of deferred financing costs. As of June 30, 2026 and December 31, 2025, the term loans had a carrying value of $1.1 billion and $1.1 billion, respectively, net of deferred financing costs.
The Company and the Operating Partnership are borrowers jointly and severally obligated under the 2026 Credit Facility.
Restrictive Covenants
The terms of the 2026 Credit Facility 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 Adjusted EBITDA to fixed charges, a maximum ratio of secured indebtedness to total asset value and a maximum ratio of unsecured indebtedness to unencumbered asset value. The dividend restriction referred to above provides that we will not, during any time when a default is continuing, make distributions with respect to common stock or other equity interests, except to enable the Company to continue to qualify as a REIT for Federal income tax purposes. As of June 30, 2026 and December 31, 2025, we were in compliance with all such covenants.
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CMBS Repurchase Facility
In December 2024, the Company entered into a repurchase facility for CMBS (CMBS Repurchase Facility), which provides us with the ability to sell certain CMBS investments with a simultaneous agreement to repurchase the same at a certain date or on demand. We seek to mitigate risks associated with our repurchase facility by managing the credit quality of our assets, early repayments, interest rate volatility, liquidity, and market value. The margin call provisions under our repurchase facility permit valuation adjustments based on capital markets activity and are not limited to collateral-specific credit marks. To monitor credit risk associated with our CMBS investments, our asset management team regularly reviews our investment portfolio and is in contact with our borrowers in order to monitor the collateral and enforce our rights as necessary. The risk associated with potential margin calls is further mitigated by our ability to collateralize the facility with additional assets from our portfolio of investments, our ability to satisfy margin calls with cash or cash equivalents and our access to additional liquidity. As of June 30, 2026, there have been no margin calls on the CMBS Repurchase Facility. At June 30, 2026, there was no outstanding balance on the facility.
Interest Rate Risk
We are exposed to changes in interest rates primarily from our variable rate debt. Our exposure to interest rate fluctuations are managed through the use of interest rate derivative instruments and through our variable rate debt and preferred equity investments. Based on the debt outstanding as of June 30, 2026, a hypothetical 100 basis point increase in the applicable floating interest rate curve would increase our share of consolidated annual interest cost, net of interest income from variable rate debt and preferred equity investments, by $7.9 million and would increase our share of joint venture annual interest cost by $4.0 million. As of June 30, 2026, $77.6 million, or 68.6%, of our $113.1 million debt and preferred equity portfolio was variable rate.
We recognize all derivatives on the balance sheet at fair value. Derivatives that are not designated as hedges for accounting purposes are adjusted to fair value through income. If a derivative is designated as a hedge for accounting purposes, 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.
Off-Balance Sheet Arrangements
We have off-balance sheet investments, including joint ventures and debt and preferred equity investments. These investments all have varying ownership structures. A majority of our joint venture arrangements are accounted for under the equity method of accounting as we have the ability to exercise significant influence over, but not control, the operating and financial decisions of these joint venture arrangements. Our off-balance sheet arrangements are discussed in Note 5, "Investments in Unconsolidated Joint Ventures" and Note 7, "Debt and Preferred Equity Investments" in the accompanying consolidated financial statements.
Dividends/Distributions
We expect to pay dividends to our stockholders based on the distributions we receive from our Operating Partnership.
To maintain our qualification as a REIT, we must pay annual dividends to our stockholders of at least 90% of our REIT taxable income, determined before taking into consideration the dividends paid deduction and net capital gains.
Any dividend we pay may be in the form of cash, stock or a combination thereof, subject to IRS limitations on the use of stock for dividends. Additionally, if our REIT taxable income in a particular year exceeds the amount of cash dividends we pay in that year, we may pay stock dividends in order to maintain our REIT status and avoid certain REIT-level taxes.
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 2026 Credit Facility, we must first meet both our operating requirements and scheduled debt service on our mortgages and loans payable.
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Insurance
We maintain “all-risk” property and rental value coverage (including coverage regarding the perils of flood, earthquake and terrorism, excluding nuclear, biological, chemical, and radiological terrorism ("NBCR")), within two property insurance programs and liability insurance. Separate property and liability coverage may be purchased on a stand-alone basis for certain assets, such as development projects. Additionally, one of our captive insurance companies, Belmont Insurance Company ("Belmont"), provides coverage for NBCR terrorist acts above a specified trigger. Belmont's retention is reinsured by our other captive insurance company, Ticonderoga Insurance Company ("Ticonderoga"). However, there is no assurance that in the future we will be able to procure coverage at a reasonable cost. Further, if we experience losses that are uninsured or that exceed policy limits, we could lose the capital invested in the damaged properties as well as the anticipated future cash flows from those properties. Additionally, our debt instruments contain customary covenants requiring us to maintain insurance and we could default under our debt instruments if the cost and/or availability of certain types of insurance make it impractical or impossible to comply with such covenants relating to insurance. Belmont and Ticonderoga provide coverage solely on properties owned by the Company or its affiliates. If Belmont or Ticonderoga are required to pay a claim under our insurance policies, we would ultimately record the loss to the extent of required payments.
Furthermore, with respect to certain of our properties, including properties held by joint ventures or subject to triple net leases, insurance coverage is obtained by a third-party and we do not control the coverage. While we may have agreements with such third parties to maintain adequate coverage and we monitor these policies, such coverage ultimately may not be maintained or adequately cover our risk of loss.
Funds from Operations
Funds from Operations ("FFO") is a widely recognized non-GAAP financial measure of REIT performance. The Company computes FFO in accordance with standards established by Nareit, which may not be comparable to FFO reported by other REITs that do not compute FFO in accordance with the Nareit definition, or that interpret the Nareit definition differently than the Company does. The revised White Paper on FFO approved by the Board of Governors of Nareit in April 2002, and subsequently amended in December 2018, defines FFO as net income (loss) (computed in accordance with GAAP), excluding gains (or losses) from sales of properties and real estate related impairment charges, plus real estate related depreciation and amortization and after adjustments for unconsolidated partnerships and joint ventures.
The Company presents FFO because it considers it an important supplemental measure of the Company's operating performance and believes that it is frequently used by securities analysts, investors and other interested parties in the evaluation of REITs, particularly those that own and operate commercial office properties. The Company also uses FFO as one of several criteria to determine performance-based compensation for members of its senior management. FFO is intended to exclude GAAP historical cost depreciation and amortization of real estate and related assets, which assumes that the value of real estate assets diminishes ratably over time. Historically, however, real estate values have risen or fallen with market conditions. Because FFO excludes depreciation and amortization unique to real estate, gains and losses from property dispositions, and real estate related impairment charges, it provides a performance measure that, when compared year over year, reflects the impact to operations from trends in occupancy rates, rental rates, operating costs, and interest costs, providing perspective not immediately apparent from net income. FFO does not represent cash generated from operating activities in accordance with GAAP and should not be considered as an alternative to net income (determined in accordance with GAAP), as an indication of the Company's financial performance or to cash flow from operating activities (determined in accordance with GAAP) as a measure of the Company's liquidity, nor is it indicative of funds available to fund the Company's cash needs, including our ability to make cash distributions.
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FFO for the three and six months ended June 30, 2026 and 2025 are as follows (in thousands):
Three Months Ended June 30, Six Months Ended June 30,
2026 2025 2026 2025
Net loss attributable to SL Green common stockholders $ (26,503) $ (11,092) $ (110,894) $ (32,167)
Add:
Depreciation and amortization 67,279 60,160 137,030 124,658
Joint venture depreciation and noncontrolling interest adjustments 61,761 68,003 124,357 121,364
Net income (loss) attributable to noncontrolling interests 9,617 (1,615) 10,673 (7,977)
Less:
Equity in net loss on sale of interest in unconsolidated joint venture/real estate — (1,946) (814) (1,946)
Purchase price and other fair value adjustments 5,252 (8,399) 7,476 (14,943)
(Loss) gain on sale of real estate, net (4,179) (167) 12,457 (649)
Depreciable real estate reserves and impairments — — (35,160) (8,546)
Depreciable real estate reserves in unconsolidated joint venture — — — (1,780)
Depreciation on non-rental real estate assets 1,502 1,421 3,005 2,684
Funds from Operations attributable to SL Green common stockholders and unit holders $ 109,579 $ 124,547 $ 174,202 $ 231,058
Seasonality
Our business at SUMMIT is subject to, among other things, tourism trends and weather conditions, resulting in seasonal fluctuation. The table below shows SUMMIT's revenue for each quarter during 2025. We do not consider any other components of our business to be subject to material seasonal fluctuations.
Year Ended December 31, 2025
1st Quarter 18.0%
2nd Quarter 26.0%
3rd Quarter 27.0%
4th Quarter 29.0%
Total 100.0%
Accounting Standards Updates
The Accounting Standards Updates are discussed in Note 2, "Significant Accounting Policies Accounting Standards Updates" in the accompanying consolidated financial statements.
Forward-Looking Information
This report includes certain statements that may be deemed to be "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 and are intended to be covered by the safe harbor provisions thereof. All statements, other than statements of historical facts, included in this report that address activities, events or developments that we expect, believe or anticipate will or may occur in the future, including such matters as future capital expenditures, dividends and acquisitions (including the amount and nature thereof), development trends of the real estate industry and the New York metropolitan area markets, occupancy, business strategies, expansion and growth of our operations and other similar matters, are forward-looking statements. These forward-looking statements are based on certain assumptions and analyses made by us in light of our experience and our perception of historical trends, current conditions, expected future developments and other factors we believe are appropriate.
Forward-looking statements are not guarantees of future performance and actual results or developments may differ materially, and we caution you not to place undue reliance on such statements. Forward-looking statements are generally identifiable by the use of the words "may," "will," "should," "expect," "anticipate," "estimate," "believe," "intend," "project," "continue," or the negative of these words, or other similar words or terms.
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Forward-looking statements contained in this report are subject to a number of risks and uncertainties that may cause our actual results, performance or achievements to be materially different from future results, performance or achievements expressed or implied by forward-looking statements made by us. These risks and uncertainties include:
•the effect of general economic, geopolitical, 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;
•risks related to our asset management business, including our ability to identify suitable investments, manage actual and potential conflicts of interest and comply with regulations on our asset management subsidiary under the Investment Advisers Act of 1940; and
•legislative, regulatory and/or safety requirements adversely affecting REITs and the real estate business including costs of compliance with the Americans with Disabilities Act, the Fair Housing Act and other similar laws and regulations.
Other factors and risks to our business, many of which are beyond our control, are described in other sections of this report and in our other filings with the SEC. Except to the extent required by law, we undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of future events, new information or otherwise.
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