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NYU CREFR Spring Symposium April 2014

NYU CREFR Spring Symposium April 2014. SLG is M anhattan’s largest commercial real estate owner Own ~10% of midtown M anhattan class ‘A’ office space footage Interests in 92 properties totaling 44.4M SF * Founded in 1980 and listed on the New Y ork S tock E xchange since 1997

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NYU CREFR Spring Symposium April 2014

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  1. NYU CREFR Spring Symposium April 2014
  2. SLG is Manhattan’s largest commercial real estate owner Own ~10% of midtown Manhattan class ‘A’ office space footage Interests in 92 properties totaling 44.4M SF* Founded in 1980 and listed on the New York Stock Exchange since 1997 Combined total market capitalization of $18.5B Seasoned management team with an average of 12 years with SL Green About SL Green (NYSE: SLG) *Includes debt & preferred equity investments
  3. High Quality, Well Located Fortress Portfolio Best-In-Class, Fully Integrated Real Estate Operating Platform Value Creation Through NYC Centric Skills Development, redevelopment, and repositioning Largest NYC structured finance platform Specializing in off-market transactions Dominant high traffic retail portfolio The SL Green Brand
  4. NYC Focus Largest US market Highly liquid & transaction rich Long leases & high credit quality tenants Keep the Buildings Full Best cash flow over the long term Provides stable & low risk foundation Invest Based on Management Skills NYC focus Off market – invest based on value add Capitalize on skills across breadth of real estate opportunities Broad Access to Capital Maintain high liquidity, low maturities Access capital across entire spectrum The SL Green Philosophy
  5. Core Portfolio Investment Strategy Opportunistic capital recycling Sell bottom 10% annually; redeploy into higher growth potential Net acquirer of Class A assets Maintain New York focus Cyclically Driven Investment Strategy Supporting Debt and Preferred Equity (DPE) Strategy Increases market visibility Access to high risk adjusted returns given last dollar exposure Underwriting based on extensive local market knowledge as largest owner / operator
  6. Interests in 92 properties – 44.4M SF 27.8M SF of office, retail, residential and development Debt portfolio secured by 16.6M SF 1,007 tenants SL Green Manhattan Portfolio retail office key resi Retail
  7. Positive New York Employment Trends NYC OFFICE USING JOBS NYC TOTAL EMPLOYMENT New Peak New Peak JOB RECOVERED SINCE TROUGH AS A % OF JOBS LOST(1) Source: Market Data & Commentary: Cushman & Wakefield and Bureau of Labor Statistics (1) Trough defined as April 2008 through November 2009. Job recovered as of 3.31.14 (latest available data).
  8. Positive New York Economic Trends Manhattan Total Retail Sales NYSE Member Firm Profits Rising Tourism Growing Hotel Room Nights Source: Bureau of Labor Statistics, NYC Office of Management and Budget: Member firms of the NYSE, NYC, Moody’s Analytics, NYC and Company
  9. YTD New Leasing – Solid Velocity Average: 24.6 Source: Cushman & Wakefield Research as of 3.31.14
  10. Midtown & Downtown Class A asking Rents $/sf Source: Cushman & Wakefield Research as of 3.31.14
  11. Taking Rents - $100 & Greater Source: Cushman & Wakefield Research as of 3.31.14
  12. Tenants in the Market MANHATTAN OCCUPANCY TENANTS IN THE MARKET BY INDUSTRY Source: Cushman & Wakefield Research as of 3.31.14 Data includes tenants occupying 5k SF and larger Note: TAMI is technology, advertising, media, and information
  13. NYC job growth greater than other major US markets Increasing demand from tech, advertising & media $30B of construction creating tens of thousands of jobs Midtown remains strong – continued growth in Midtown South & Downtown NYC residential has rebounded to new peaks NYC continues to be the gold-standard for retailers globally Low interest rate environment Strong corporate profits Current Market Themes
  14. Manhattan Investment Sales by Volume $16.5 Source: Cushman & Wakefield Research as of 3.31.14
  15. Midtown Class A Office Trends Source: Cushman & Wakefield; 2013 Data includes closed and under contract
  16. Annual Investment Sales by Investor Profile 2011 - $25.5 Billion 2012 - $28.6 Billion YTD ‘14 - $7.5 Billion 2013 - $31.9 Billion Source: Cushman & Wakefield Capital Markets Group
  17. Global Investors in NYC
  18. NYC – A Relative Bargain Source: JLL Capital Markets Group & Cushman and Wakefield Capital Markets
  19. Strong Market Will Continue… Total Volume Should Equal or Exceed Prior Year New York Does Not Go Out of Style… Still the Market of Choice Continued Presence from Around the World Groups with Presence in NYC- Canadians, Norwegians & Chinese Should Lead the Pack Positive Leasing & Employment Dynamics will Continue to Keep Cap Rates Low… May Even go Lower (~4%) NYC Investment Sales Market in 2014
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