SL GREEN REALTY CORP Q2 FY2024 earnings call

• The company's deliberate plan to improve portfolio quality by physically improving properties, focusing on Park Avenue Spine and East Midtown, selling non-fit assets, and monetizing best assets for development is paying off. - Strong leasing activity in NYC, with significant sector growth despite others' negativity. - Summit is expanding to Paris; One Madison retail is fully leased; One Vanderbilt is fully leased and receives global recognition. - Advocating for expediting the casino bid process in NYC for economic and job benefits.

Office segment: Had strong leasing activity; average rent in Q2 was over $100, up over 10% from Q1's ~$93. Pipeline of office leasing is 1.2 million square feet. Retail: One Madison retail is 100% leased. Summit: Revenue grew 16% year-over-year, mostly due to attendance; expanding to Paris. Fee income: Special servicing, asset management fees are recurring and high margin, with timing being a challenge but categories are recurring.

• Anticipates sequential quarterly improvement in operating and financial metrics. - Full year leasing goal for Manhattan office is 2 million square feet, currently ahead of guidance. - Same store NOI guidance was down 1-2%, trending ahead but a push to hit goals; fee income and other metrics have potential to be better depending on special servicing assignments.

• Lack of debt liquidity in the transaction market impacting investor transactions. - Uncertainty in the timing and outcome of the casino bid process in NYC.

Q: Rent spreads and sustainability?

A: Mix and quarterly activity cause bounce; still on trajectory to hit full year targets but don't read too much into quarter-to-date.

Q: Casino bid status?

A: Advocates for expediting; ready with bid, hopeful to prevail with economic benefits.

Q: Leasing in Park Avenue submarket, concessions?

A: Park Avenue has low vacancy, landlords pushing rents; concessions static, build-out costs high affecting tenant demands.

Q: Equity issuance for capital plan?

A: No immediate need for equity on base case plan; may consider if additional investment opportunities arise.