Noncontrolling Interests on the Company's Consolidated Financial Statements

6 Months Ended

Jun. 30, 2020

Noncontrolling Interests on the Company's Consolidated Financial Statements

Noncontrolling interests represent the common and preferred units of limited partnership interest in the Operating Partnership not held by the Company as well as third party equity interests in our other consolidated subsidiaries. Noncontrolling interests in the Operating Partnership are shown in the mezzanine equity while the noncontrolling interests in our other consolidated subsidiaries are shown in the equity section of the Company’s consolidated financial statements.

Common Units of Limited Partnership Interest in the Operating Partnership

As of June 30, 2020 and December 31, 2019, the noncontrolling interest unit holders owned 5.20%, or 4,044,555 units, and 5.03%, or 4,195,875 units, of the Operating Partnership, respectively. As of June 30, 2020, 4,044,555 shares of our common stock were reserved for issuance upon the redemption of units of limited partnership interest of the Operating Partnership.

Noncontrolling interests in the Operating Partnership is recorded at the greater of its cost basis or fair market value based on the closing stock price of our common stock at the end of the reporting period.

Below is a summary of the activity relating to the noncontrolling interests in the Operating Partnership for the six months ended June 30, 2020 and the twelve months ended December 31, 2019 (in thousands):



	June 30, 2020			December 31, 2019
Balance at beginning of period	$	409,862		$	387,805
Distributions	(5,110		)	(14,729		)
Issuance of common units	5,613			19,403
Redemption and conversion of common units	(26,810		)	(27,962		)
Net income	9,272			13,301
Accumulated other comprehensive loss allocation	(2,981		)	(2,276		)
Fair value adjustment	(31,144		)	34,320
Balance at end of period	$	358,702		$	409,862

Preferred Units of Limited Partnership Interest in the Operating Partnership

Below is a summary of the preferred units of limited partnership interest in the Operating Partnership as of June 30, 2020:



Issuance	Number of Units Authorized	Number of Units Issued	Annual Dividend Per Unit⁽¹⁾			Liquidation Preference Per Unit⁽²⁾			Conversion Price Per Unit⁽³⁾		Date of Issuance
3.50% Series A ⁽⁴⁾	109,161	109,161	$	35.0000		$	1,000.00		$	—	August 2015
7.00% Series F	60	60	$	70.0000		$	1,000.00		$	29.12	January 2007
4.50% Series G ⁽⁵⁾	1,902,000	1,902,000	$	1.1250		$	25.00		$	88.50	January 2012
3.50% Series K	700,000	563,954	$	0.8750		$	25.00		$	134.67	August 2014
4.00% Series L	500,000	378,634	$	1.0000		$	25.00		—		August 2014
3.75% Series M	1,600,000	1,600,000	$	0.9375		$	25.00		—		February 2015
4.00% Series P	200,000	200,000	$	1.0000		$	25.00		—		July 2015
3.50% Series Q	268,000	268,000	$	0.8750		$	25.00		$	148.95	July 2015
3.50% Series R	400,000	400,000	$	0.8750		$	25.00		$	154.89	August 2015
4.00% Series S	1,077,280	1,077,280	$	1.0000		$	25.00		—		August 2015
3.50% Series V	40,000	40,000	$	0.8750		$	25.00		—		May 2019
Series W ⁽⁶⁾	1	1	⁽⁶		⁾	⁽⁶		⁾	—		January 2020


(1)	Dividends are cumulative, subject to certain provisions.


(2)	Units are redeemable at any time at par for cash at the option of the unitholder unless otherwise specified.


(3)	If applicable, units are convertible into a number of common units of limited partnership interest in the Operating Partnership equal to (i) the liquidation preference plus accumulated and unpaid distributions on the conversion date divided by (ii) the amount shown in the table.

(4)

Issued through a consolidated subsidiary. The units are convertible on a one-for-one basis, into the Series B Preferred Units of limited partnership interest, or the Subsidiary Series B Preferred Units. The Subsidiary Series B Preferred Units can be converted at any time, at the option of the unitholder, into a number of common stock equal to 6.71348 shares of common stock for each Subsidiary Series B Preferred Unit. As of June 30, 2020, no Subsidiary Series B Preferred Units have been issued.


(5)	Common units of limited partnership interest in the Operating Partnership issued in a conversion may be redeemed in exchange for our common stock on a 1-to-1 basis. The Series G Preferred Units also provide the holder with the right to require the Operating Partnership to repurchase the Series G Preferred Units for cash before January 31, 2022.

(6)

The Series W preferred unit was issued in January 2020 in exchange for the then-outstanding Series O preferred unit. The holder of the Series W preferred unit is entitled to quarterly dividends in an amount calculated as (i) 1,350 multiplied by (ii) the current distribution per common unit of limited partnership in SL Green Operating Partnership. The holder has the right to require the Operating Partnership to repurchase the Series W unit for cash, or convert the Series W unit for Class B units, in each case at a price that is determined based on the closing price of the Company's common stock at the time such right is exercised. The unit's liquidation preference is the fair market value of the unit plus accrued distributions at the time of a liquidation event.

Below is a summary of the activity relating to the preferred units in the Operating Partnership for the six months ended June 30, 2020 and the twelve months ended December 31, 2019 (in thousands):



	June 30, 2020			December 31, 2019
Balance at beginning of period	$	283,285		$	300,427
Issuance of preferred units	—			1,000
Redemption of preferred units	(59,800		)	(18,142		)
Accrued dividends on preferred units	1,963			—
Balance at end of period	$	225,448		$	283,285