Partners' Capital of the Operating Partnership

3 Months Ended

Mar. 31, 2018

Partners' Capital of the Operating Partnership

Stockholders’ Equity of the Company

Common Stock

Our authorized capital stock consists of 260,000,000 shares, $0.01 par value per share, consisting of 160,000,000 shares of common stock, $0.01 par value per share, 75,000,000 shares of excess stock, at $0.01 par value per share, and 25,000,000 shares of preferred stock, par value $0.01 per share. As of March 31, 2018, 89,135,009 shares of common stock and no shares of excess stock were issued and outstanding.

Stock Repurchase Program

In August 2016, our board of directors approved a stock repurchase plan under which we can buy up to $1.0 billion of shares of our common stock. In December 2017, our board of directors authorized an increase to the size of this plan by an additional $500 million of our common stock, bringing it to a total of $1.5 billion of shares of our common stock.

At March 31, 2018, repurchases under the plan were as follows:



Period	Shares repurchased	Average price paid per share	Cumulative number of shares repurchased as part of the repurchase plan or programs	Maximum approximate dollar value of shares that may yet be repurchased under the plan (in millions)⁽¹⁾
2017	8,342,411	$101.64	8,342,411	$652.0
First quarter 2018 ⁽²⁾	3,653,928	$97.07	11,996,339	$297.2


(1)	Reflective of $1.5 billion plan maximum as of March 31, 2018.


(2)	Includes 142,004 shares of common stock repurchased by the Company in March 2018 that were settled in April 2018.

Perpetual Preferred Stock

We have 9,200,000 shares of our 6.50% Series I Cumulative Redeemable Preferred Stock, or the Series I Preferred Stock, outstanding with a mandatory liquidation preference of $25.00 per share. The Series I Preferred stockholders receive annual dividends of $1.625 per share paid on a quarterly basis and dividends are cumulative, subject to certain provisions. We are entitled to redeem the Series I Preferred Stock at par for cash at our option. In August 2012, we received $221.9 million in net proceeds from the issuance of the Series I Preferred Stock, which were recorded net of underwriters' discount and issuance costs, and contributed the net proceeds to the Operating Partnership in exchange for 9,200,000 units of 6.50% Series I Cumulative Redeemable Preferred Units of limited partnership interest, or the Series I Preferred Units.

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 Company registered 3,500,000 shares of our common stock under the DRSPP. The DRSPP commenced on September 24, 2001.

Earnings per Share

SL Green's earnings per share for the three months ended March 31, 2018 and 2017 are computed as follows (in thousands):



	Three Months Ended March 31,
Numerator	2018		2017
Basic Earnings:
Income attributable to SL Green common stockholders	$	101,766	$	11,351
Effect of Dilutive Securities:
Redemption of units to common shares	5,272		476
Diluted Earnings:
Income attributable to SL Green common stockholders	$	107,038	$	11,827



	Three Months Ended March 31,
Denominator	2018	2017
Basic Shares:
Weighted average common stock outstanding	90,520	100,643
Effect of Dilutive Securities:
Operating Partnership units redeemable for common shares	4,683	4,607
Stock-based compensation plans	53	304
Diluted weighted average common stock outstanding	95,256	105,554

SL Green has excluded 1,210,802 and 1,025,419 common stock equivalents from the diluted shares outstanding for the three months ended March 31, 2018 and 2017, respectively, as they were anti-dilutive.

Accumulated Other Comprehensive Income

The following tables set forth the changes in accumulated other comprehensive income (loss) by component as of March 31, 2018 (in thousands):



	Net unrealized gain on derivative instruments ⁽¹⁾		SL Green’s share of joint venture net unrealized gain on derivative instruments ⁽²⁾		Net unrealized gain on marketable securities			Total
Balance at December 31, 2017	$	12,542	$	5,020	$	1,042		$	18,604
Other comprehensive (loss) income before reclassifications	6,859		3,114		(315		)	9,658
Amounts reclassified from accumulated other comprehensive income	310		1		—			311
Balance at March 31, 2018	$	19,711	$	8,135	$	727		$	28,573

(1)

Amount reclassified from accumulated other comprehensive income (loss) is included in interest expense in the respective consolidated statements of operations. As of March 31, 2018 and December 31, 2017, the deferred net losses from these terminated hedges, which is included in accumulated other comprehensive loss relating to net unrealized loss on derivative instrument, was $2.7 million and $3.2 million, respectively.


(2)	Amount reclassified from accumulated other comprehensive income (loss) is included in equity in net income from unconsolidated joint ventures in the respective consolidated statements of operations.

SL Green Operating Partnership

Stockholders' Equity

Partners' Capital of the Operating Partnership

The Company is the sole general partner of the Operating Partnership and at March 31, 2018 owned 89,135,009 general and limited partnership interests in the Operating Partnership and 9,200,000 Series I Preferred Units. Partnership interests in the Operating Partnership are denominated as “common units of limited partnership interest” (also referred to as “OP Units”) or “preferred units of limited partnership interest” (also referred to as “Preferred Units”). All references to OP Units and Preferred Units outstanding exclude such units held by the Company. A holder of an OP Unit may present such OP Unit to the Operating Partnership for redemption at any time (subject to restrictions agreed upon at the issuance of OP Units to particular holders that may restrict such right for a period of time, generally one year from issuance). Upon presentation of an OP Unit for redemption, the Operating Partnership must redeem such OP Unit in exchange for the cash equal to the then value of a share of common stock of the Company, except that the Company may, at its election, in lieu of cash redemption, acquire such OP Unit for one share of common stock. Because the number of shares of common stock outstanding at all times equals the number of OP Units that the Company owns, one share of common stock is generally the economic equivalent of one OP Unit, and the quarterly distribution that may be paid to the holder of an OP Unit equals the quarterly dividend that may be paid to the holder of a share of common stock. Each series of Preferred Units makes a distribution that is set in accordance with an amendment to the partnership agreement of the Operating Partnership. Preferred Units may also be convertible into OP Units at the election of the holder thereof or the Company, subject to the terms of such Preferred Units.

Net income (loss) allocated to the preferred unitholders and common unitholders reflects their pro rata share of net income (loss) and distributions.

Limited Partner Units

As of March 31, 2018, limited partners other than SL Green owned 5.02%, or 4,715,338 common units, of the Operating Partnership.

Preferred Units

Preferred units not owned by SL Green are further described in Note 11, “Noncontrolling Interests on the Company’s Consolidated Financial Statements - Preferred Units of Limited Partnership Interest in the Operating Partnership.”

Earnings per Unit

The Operating Partnership's earnings per unit for the three months ended March 31, 2018 and 2017, respectively, are computed as follows (in thousands):



	Three Months Ended March 31,
Numerator	2018		2017
Basic and Diluted Earnings:
Income attributable to SLGOP common unitholders	$	107,038	$	11,827



	Three Months Ended March 31,
Denominator	2018	2017
Basic units:
Weighted average common units outstanding	95,203	105,250
Effect of Dilutive Securities:
Stock-based compensation plans	53	304
Diluted weighted average common units outstanding	95,256	105,554

The Operating Partnership has excluded 1,210,802 and 1,025,419 common unit equivalents from the diluted units outstanding for the three months ended March 31, 2018 and 2017, respectively, as they were anti-dilutive.