SLG

Leasing and Occupancy Performance

• Economic occupancy rose 300 basis points in Q2 2026 as concessions decreased and vacancy fell, with 100% occupancy at One Vanderbilt.
• Leasing momentum is outpacing annual goals, with broad-based rent growth across the portfolio, particularly on Park Avenue and Sixth Avenue properties.
• SL Green exceeded expectations for Q2 2026 results, with office-using jobs up 12,000 year-to-date in New York City and healthcare adding 20,000 jobs year-to-date, driving broad-based office demand.
• Current leasing pipeline stands at 900,000 square feet, split roughly 50% new leases and 50% renewals, with 400,000 square feet in advanced negotiations.

New York City Market Dynamics

• New York City office activity is experiencing a major resurgence, with $21 billion in Wall Street profits in Q1 2026 (the second-highest Q1 on record) and big five money center bank Q2 profits up 50% year-over-year.
• New York City-based startups raised $10.8 billion in venture capital in Q2 2026 ($21.1 billion year-to-date), double 2025 levels, with strong AI-driven tech leasing growth including a recently announced 100,000 square foot lease at 11 Madison.
• Limited new office supply (most 2020-2024 projects were delayed or cancelled) and ongoing conversion of secondary office space to residential have reduced available inventory, driving rental growth across all market segments.

Capital Markets and Dispositions

• 4 of 11 planned 2026 asset sales are completed or under contract, with 2 more expected to be announced soon and 5 remaining transactions scheduled to launch in H2 2026. The 245 Park Avenue financing is in advanced stages, with updates expected in the coming months.
• A partnership with Morie Building was closed for the 346 Madison Avenue development project, with Morie Building as a co-development partner to de-risk the project from day one.
• 10 East 53rd Street entered contract for sale at a 5.7% cap rate.
• $14 million in share buybacks were completed in Q2 2026, with management viewing current valuations as disconnected from underlying asset value, and will continue to evaluate buybacks as incremental liquidity becomes available.

Development Projects

• 750 Third Avenue conversion project remains on track for Q3 2026 closing, with multiple layers of structural inspection and oversight in place to avoid the issues seen at a nearby conversion project, and no impact to debt or equity financing.
• Minor litigation over access rights for 346 Madison is expected to be resolved in August 2026 with no impact to the project timeline.

Summit Entertainment Business

• Despite lower overall city tourism in 2026, Summit One Vanderbilt leads all competitors in attendance, with strong performance since May 2026 and new ticketed experiences driving future revenue growth.
• Summit is on track to open in Paris in summer 2027 and in Tokyo in 2030, with strong long-term growth potential for the global expansion of the business.

1515 Broadway

• Following the failed casino bid, the property now has increased long-term potential as the primary tenant (Paramount, now owned by Skydance, which is merging with Warner Bros. Discovery) may consolidate 4,000+ jobs at the location. The property has rapid debt amortization, giving flexibility for conversion to a mixed-use entertainment destination once the merger is finalized, with plans expected to take shape in 2027.

• Management announced a significant upward revision to 2026 FFO guidance, increasing it by $1.20 per share (more than 26%), with the vast majority of this increase recurring.
• 20 cents of the guidance increase comes from the office portfolio (10 cents already recognized in Q2) and 20 cents comes from additional fee and other income, with 80 cents coming from the change in accounting for One Vanderbilt's excess cash flow.
• The inflection point for FAD (Funds Available for Distribution) to reach breakeven on dividend coverage remains on track for 2028, with current performance slightly ahead of the prior trajectory.
• SL Green still expects to exceed 10% same-store cash NOI growth in 2027 even after stronger than expected 2026 performance.
• Economic occupancy is on track to close half of the gap to leased occupancy (relative to end of 2025 levels) by the end of 2026, and management expects to exceed full year 2026 leasing goals.

SL Green operates one core Manhattan office real estate segment, with additional revenue from the Summit observation deck entertainment business. For Q2 2026, the Manhattan office portfolio delivered 10 cents of incremental FFO in the quarter, with 20 cents of total incremental FFO expected for full year 2026 from strong leasing, accelerated space delivery to tenants, and strong expense containment. An additional 80 cents of 2026 full year FFO comes from One Vanderbilt, with 35 cents of that contribution recognized in Q2 2026; 35 cents of the 80 cents total One Vanderbilt FFO is recognized in Q2, with equal or higher contribution expected in 2027. Overall, One Vanderbilt contributes 66.7% of the total $1.20 per share 2026 FFO guidance increase, with the office portfolio and other income contributing the remaining 33.3%.

• Forward-looking statements are inherently uncertain, and actual results may differ due to risks and factors outlined in SL Green's SEC filings including 10-K and 8-K reports.
• Higher benchmark interest rates remain outside of management's control, though hedging strategies are in place to mitigate this risk.
• There is uncertainty around potential AI tenant credit risk, though SL Green has limited portfolio exposure to AI tenants (1-2% of total portfolio) and most active AI tenants are currently well-capitalized with established revenue.
• Alternative strategy portfolio assets (Worldwide Plaza, Two Herald Square, 650 Fifth Avenue) face capitalization challenges, with no guarantee that restructuring efforts will be successful, though these assets contribute little to current earnings or net asset value and have limited recourse.
• Office-to-residential conversion economics could shift over the next 1-2 years, potentially leading to fewer conversions than expected and increased future office supply.

Q: What is driving the unexpectedly strong pace of New York office recovery, and will conversion plans remain on track? / A: Management cites four core drivers: 1) a broadly strong, multi-sector New York City economy with strong corporate profits driving space demand; 2) very limited new office supply, as most 2020-2024 projects were delayed or canceled; 3) tenant demand to lock in long-term space now to secure future expansion options; 4) ongoing conversion of secondary office space to residential, which reduces total office inventory. For existing conversion projects, management expects all permitted projects to move forward as planned. While conversion economics have narrowed as office rents rise, residential conversion still remains favorable due to better financing terms and stronger cap rate environments, so most projects will proceed, though equilibrium may be reached in a few years.

Q: What embedded rent upside exists for 2020-2023 COVID-era short-term leases as they roll over? / A: Management estimates embedded mark-to-market rent upside of 10-20% on average for these COVID-era leases, with most already rolling off and being renewed over the past 1-2 years. Additional upside comes from early blend-and-extend renewals, which reduce tenant improvement costs and free rent concessions, leading to net effective rent growth that often exceeds 20%. The rollover schedule for coming years is very manageable, with no large chunky expirations, allowing management to actively pursue early renewal opportunities across the portfolio through 2032.

Q: What is the One Vanderbilt FFO accounting change, and why was it only recognized now, and what drives quarterly volatility? / A: One Vanderbilt has generated enough excess cash flow to repay all invested equity, leading to a negative GAAP carrying value that hit the maximum allowed limit at the end of Q1 2026. Starting Q2 2026, all excess cash distributions from One Vanderbilt above GAAP equity income now flow directly as incremental FFO, plus amortization of the negative carrying value through 2031. The accounting treatment required full vetting with auditors and regulators that was only completed after the end of Q1, so the adjustment was made starting in Q2. Quarterly FFO volatility will depend on the level of cash distributions from One Vanderbilt; if cash is retained for project needs, contributions will be lower, and if distributed, contributions will be higher.

Q: How is SL Green approaching AI tenant credit quality, and what is the breadth of AI leasing demand? / A: Of the 9.5 million square feet of active tech leasing demand in Manhattan, only 2.5 million square feet comes from AI tenants. Unlike the dot-com era, when most startups had no revenue, most current AI tenants of size are well-capitalized with established revenue. SL Green has consciously limited total portfolio exposure to AI to 1-2%, with most AI tenants preferring Midtown South where SL Green's available space is currently 100% leased, limiting further exposure.