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SL GREEN REALTY CORP. FORM 10-K TABLE OF CONTENTS
ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
PART IV

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 10-K

ý	ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the fiscal year ended December 31, 2011
OR
o	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from                to                .

Commission File Number: 1-13199

SL GREEN REALTY CORP.
(Exact name of registrant as specified in its charter)

Maryland	13-3956755
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

420 Lexington Avenue, New York, NY 10170
(Address of principal executive offices—Zip Code)

(212) 594-2700
(Registrant's telephone number, including area code)

          SECURITIES REGISTERED PURSUANT TO SECTION 12(B) OF THE ACT:

Title of Each Class	Name of Each Exchange on Which Registered
Common Stock, $0.01 par value	New York Stock Exchange
7.625% Series C Cumulative Redeemable Preferred Stock, $0.01 par value, $25.00 mandatory liquidation preference	New York Stock Exchange
7.875% Series D Cumulative Redeemable Preferred Stock, $0.01 par value, $25.00 mandatory liquidation preference	New York Stock Exchange

          SECURITIES REGISTERED PURSUANT TO SECTION 12(G) OF THE ACT: None

          Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes ý    No o

          Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. Yes o    No ý

          Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ý    No o

          Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes ý    No o

          Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not contained herein, and will not be contained, to the best of the registrant's knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K. o

          Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of "large accelerated filer," "accelerated filer," and "smaller reporting company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer ý Accelerated filer o Non-accelerated filer o
(Do not check if a
smaller reporting company) Smaller Reporting Company o

          Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). Yes o    No ý

          As of February 15, 2012, there were 86,368,447 shares of the Registrant's common stock outstanding. The aggregate market value of the common stock, held by non-affiliates of the Registrant (78,694,295 shares) at June 30, 2011 was $6.5 billion. The aggregate market value was calculated by using the closing price of the common stock as of that date on the New York Stock Exchange.

DOCUMENTS INCORPORATED BY REFERENCE

          Portions of the Registrant's Proxy Statement for its 2012 Annual Stockholders' Meeting to be to be filed within 120 days after the end of the Registrant's fiscal year are incorporated by reference into Part III of this Annual Report on Form 10-K.

SL GREEN REALTY CORP.
FORM 10-K
TABLE OF CONTENTS

10-K PART AND ITEM NO.

PART I
1.	Business	3
1.A	Risk Factors	10
1.B	Unresolved Staff Comments	24
2.	Properties	25
3.	Legal Proceedings	34
4.	Mine Safety Disclosure	34
PART II
5.	Market for Registrant's Common Equity, Related Stockholders Matters and Issuer Purchases of Equity Securities	35
6.	Selected Financial Data	37
7.	Management's Discussion and Analysis of Financial Condition and Results of Operation	39
7A.	Quantitative and Qualitative Disclosures about Market Risk	64
8.	Financial Statements and Supplementary Data	65
9.	Changes in and Disagreements with Accountants on Accounting and Financial Disclosure	153
9A.	Controls and Procedures	153
9B.	Other Information	155
PART III
10.	Directors, Executive Officers and Corporate Governance	155
11.	Executive Compensation	155
12.	Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters	155
13.	Certain Relationships and Related Transactions, and Director Independence	155
14.	Principal Accounting Fees and Services	155
PART IV
15.	Exhibits, Financial Statements and Schedules	156

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PART I

ITEM 1.    BUSINESS

General

        SL Green Realty Corp. is a self-managed real estate investment trust, or REIT, with in-house capabilities in property management, acquisitions, financing, development, construction and leasing. We were formed in June 1997 for the purpose of continuing the commercial real estate business of S.L. Green Properties, Inc., our predecessor entity. S.L. Green Properties, Inc., which was founded in 1980 by Stephen L. Green, our Chairman, had been engaged in the business of owning, managing, leasing, acquiring and repositioning office properties in Manhattan, a borough of New York City, or Manhattan. Reckson Associates Realty Corp., or Reckson, and Reckson Operating Partnership, L.P., or ROP, are subsidiaries of SL Green Operating Partnership, L.P., our operating partnership.

        As of December 31, 2011, we owned the following interests in commercial office properties in the New York Metropolitan area, primarily in midtown Manhattan. Our investments in the New York Metropolitan area also include investments in Brooklyn, Queens, Long Island, Westchester County, Connecticut and New Jersey, which are collectively known as the Suburban assets:

Location	Ownership	Number of Properties		Square Feet		Weighted Average Occupancy(1)
Manhattan	Consolidated properties		26		18,429,945		92.8	%
	Unconsolidated properties		7		6,191,673		91.6	%
Suburban	Consolidated properties		25		3,863,000		80.5	%
	Unconsolidated properties		6		2,941,700		93.8	%
			64		31,426,318		91.2	%

⁽¹⁾

The weighted average occupancy represents the total leased square feet divided by total available square feet.

        As of December 31, 2011, our Manhattan office properties were comprised of 27 fee owned properties, including ownership in commercial condominium units, and six leasehold owned properties. As of December 31, 2011, our Suburban office properties were comprised of 30 fee owned properties and one leasehold property. We refer to our Manhattan and Suburban office properties collectively as our Portfolio.

        We also owned investments in nine stand-alone retail properties encompassing approximately 349,282 square feet, seven development properties encompassing approximately 1,395,838 square feet and three land interests as of December 31, 2011. In addition, we manage three office properties owned by third parties and affiliated companies encompassing approximately 0.9 million rentable square feet.

        Our corporate offices are located in midtown Manhattan at 420 Lexington Avenue, New York, New York 10170. As of December 31, 2011, our corporate staff consisted of approximately 263 persons, including 163 professionals experienced in all aspects of commercial real estate. We can be contacted at (212) 594-2700. We maintain a website at www.slgreen.com. On our website, you can obtain, free of charge, a copy of our annual reports on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K and amendments to those reports filed or furnished pursuant to Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended, as soon as practicable after we file such material electronically with, or furnish it to, the Securities and Exchange Commission, or the SEC. We have also made available on our website our audit committee charter, compensation committee charter, nominating and corporate governance committee charter, code of business conduct and ethics and corporate governance principles. We do not intend for information contained on our website to be part of this annual report on Form 10-K. You can also read and copy any materials we file with the SEC at its Public Reference Room at 100 F Street, NE, Washington, DC 20549 (1-800-SEC-0330). The SEC maintains an Internet

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site (http://www.sec.gov) that contains reports, proxy and information statements, and other information regarding issuers that file electronically with the SEC.

        Unless the context requires otherwise, all references to the "Company," "we," "our" and "us" in this annual report means SL Green Realty Corp., a Maryland corporation, and one or more of its subsidiaries, including SL Green Operating Partnership, L.P., a Delaware limited partnership, or the operating partnership, or, as the context may require, SL Green Realty Corp. only or SL Green Operating Partnership, L.P. only, and "S.L. Green Properties" means S.L. Green Properties, Inc., a New York corporation, as well as the affiliated partnerships and other entities through which Stephen L. Green has historically conducted commercial real estate activities.

Corporate Structure

        In connection with our initial public offering, or IPO, in August 1997, our operating partnership received a contribution of interests in real estate properties as well as a 95% economic, non-voting interest in the management, leasing and construction companies affiliated with S.L. Green Properties. We refer to these management, leasing and construction entities, which are owned by SL Green Management Corp, as the "Service Corporation." We are organized so as to qualify and have elected to qualify as a REIT under the Internal Revenue Code of 1986, as amended, or the Code.

        Substantially all of our assets are held by, and all of our operations are conducted through, our operating partnership. We are the sole managing general partner of, and as of December 31, 2011, were the owner of approximately 96.88% of the economic interests in, our operating partnership. All of the management and leasing operations with respect to our wholly-owned properties are conducted through SL Green Management LLC, or Management LLC. Our operating partnership owns a 100% interest in Management LLC.

        In order to maintain our qualification as a REIT while realizing income from management, leasing and construction contracts with third parties and joint venture properties, all of these service operations are conducted through the Service Corporation, a consolidated variable interest entity. We, through our Operating Partnership, expect to receive substantially all of the cash flow from the Service Corporation's operations. All of the voting common stock of the Service Corporation is held by an entity owned and controlled by the chairman of our board of directors.

Business and Growth Strategies

        SL Green Realty Corp., New York City's largest office landlord, is the only fully integrated REIT that is focused primarily on acquiring, managing and maximizing the value of Manhattan commercial properties.

        Our primary business objective is to maximize the total return to stockholders, through growth in funds from operations and through asset value appreciation. Our core business is the ownership of high quality office buildings that are strategically located in close proximity to midtown Manhattan's primary commuter stations. The commercial real estate expertise resulting from owning, operating, investing and lending in Manhattan for over 31 years has also enabled us to invest in a collection of premier retail properties, selected multifamily residential assets, and high quality debt and preferred equity investments. We also own high quality office properties in the surrounding markets of Brooklyn, Queens, Long Island, Westchester County, Connecticut and New Jersey.

        We are led by a strong, experienced management team that provides a foundation of skills in all aspects of property ownership and management including investment, leasing, operations, capital improvements, financing, repositioning and maintenance. It is with this team that we have achieved a market leading position in our targeted submarkets.

        We seek to enhance the value of our company by executing strategies that include the following:

•

Leasing and property management capitalizing on our extensive presence and knowledge of the marketplaces in which we operate.

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•

Acquiring office, retail and residential properties and selectively using joint venture capital to enhance returns and reduce investment risk.

•

Investing in high-yielding debt and preferred equity positions, generating strong risk-adjusted returns, increasing breadth of market insight, building key market relationships and sourcing potential future property acquisition opportunities.

•

Executing dispositions through sales or joint ventures that harvest equity generated through management's value enhancing activities, thereby providing a continuing source of capital for reinvestment.

Leasing and Property Management

        We seek to capitalize on our management's extensive knowledge of the Manhattan and suburban markets and the needs of our tenants through proactive leasing and management programs, which include: (i) use of in-depth market experience resulting from managing and leasing 31.4 million square feet of office and retail space, predominantly in Manhattan; (ii) careful management to ensure adequate average lengths of leases and manageable lease rollovers; (iii) utilization of an extensive network of third-party brokers; (iv) use of comprehensive building management analysis and planning; and (v) commitment to tenant satisfaction by providing high quality tenant services at attractive rental rates.

        It is our belief that our proactive leasing efforts have directly contributed to our average portfolio occupancy consistently exceeding the market average.

Property Acquisitions

        We acquire core properties for long-term appreciation and earnings growth. We also acquire non-core properties that are typically held for shorter periods during which we attempt to create significant increases in value. This strategy has resulted in capital gains that increase our investment capital base. In implementing this strategy, we continually evaluate potential acquisition opportunities. These acquisitions may come from new properties as well as properties in which we already hold a joint venture interest or from our debt and preferred equity investments. Although we continuously review our acquisition pipeline, there is not a specific metric that we apply to acquisitions that are under consideration.

        Through intimate knowledge of our markets and operating base we have developed a keen ability to source transactions with superior risk-adjusted returns by capturing off-market opportunities that lead to acquisitions at meaningful discounts to replacement costs. In rising markets, we acquire strategic vacancies that provide the opportunity to take advantage of our exceptional leasing capability to increase cash flow and property value. In stable or falling markets, we target assets featuring credit tenancies with fully escalated in-place rents to provide cash flow stability near-term and the opportunity for increases over time.

        In acquiring core and non-core properties, directly or through joint ventures with a predominance of high quality institutional investors, we believe that we have the following advantages over many of our competitors: (i) senior management's average 25 years of experience leading a full-service, fully-integrated real estate company focused on the Manhattan office market; (ii) the ability to offer tax-advantaged structures to sellers through the exchange of ownership interests as opposed to solely cash transactions; and (iii) the ability to close transactions quickly despite complicated ownership structures.

Property Repositioning

        Our knowledge of the leasing markets and our ability to efficiently plan and execute capital projects provide the expertise to enhance returns by repositioning properties that are underperforming. Many of the retail and commercial office buildings we own or seek to acquire feature unique architectural design elements, including large floor plates, unique amenities and characteristics that can be appealing to tenants when fully exploited. Our strategic investment in these buildings, combined with our active management and pro-active leasing, provide the opportunity to creatively meet market needs and generate favorable returns.

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Debt and Preferred Equity Investments

        We seek high-yield debt and preferred equity investments. See Note 5—"Debt and Preferred Equity Investments" in the accompanying consolidated financial statements. Knowledge of our markets and our leasing and asset management expertise provide underwriting capabilities that enable highly educated assessment of risk and return. The benefits of this investment program, which has a carefully managed aggregate size generally not to exceed 10% of our total enterprise value, include the following:

•

Our typical investments generally provide high current returns and, in certain cases, the potential for future capital gains.

•

In certain cases, these investments may also serve as a potential source of real estate acquisitions for us. This is particularly true when a property's current ownership seeks an efficient off-market transaction, because ownership will know that we have already gained knowledge of the asset through the existing investment, and that we can close quickly if we believe such acquisition would be beneficial.

•

The largest concentration of these investments is in Manhattan, which helps us gain market insight and awareness of upcoming and active investment opportunities and support for key relationships that may provide access to future investment opportunities.

Property Dispositions

        We continually evaluate our properties to identify those most suitable to meet our long-term earnings growth objectives and contribute to increasing portfolio value. Properties that no longer meet our objectives are identified as non-core holdings and are targeted for sale, or in certain cases, joint venture to release equity created through management's value enhancement programs or to take advantage of opportune market valuations.

        Capital generated from these dispositions is efficiently re-deployed into property acquisitions and investments in debt and preferred equity investments that we expect will provide enhanced future capital gains and earnings growth opportunities.

Competition

        The leasing of real estate is highly competitive, especially in the Manhattan office market. We compete for tenants with landlords and developers of similar properties located in our markets primarily on the basis of location, rent charged, services provided, balance sheet strength and the design and condition of our properties. Although currently no other publicly traded REIT has been formed primarily to acquire, own, reposition and manage Manhattan commercial office properties, we may in the future compete with such other REITs. In addition, we face competition from other real estate companies including other REITs that currently invest in markets other than or in addition to Manhattan, private real estate funds, domestic and foreign financial institutions, life insurance companies, pension trusts, partnerships, individual investors and others that may have greater financial resources or access to capital than we do or that are willing to acquire properties in transactions which are more highly leveraged or with different financial attributes than we are willing to pursue.

Manhattan Office Market Overview

        Manhattan is by far the largest office market in the United States, containing more rentable square feet than the next five largest central business district office markets combined. The properties in our portfolio are concentrated in some of Manhattan's most prominent midtown locations.

        According to Cushman and Wakefield Research Services, Manhattan has a total inventory of 392.9 million square feet, including 241.2 million square feet in midtown. Based on current construction activity, we estimate that midtown Manhattan will have approximately 0.8 million square feet of new construction becoming available in the next two years, none of which is pre-leased. This will add approximately 0.2% to Manhattan's total inventory.

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General Terms of Leases in the midtown Manhattan Markets

        Leases entered into for space in the midtown Manhattan markets typically contain terms which may not be contained in leases in other U.S. office markets. The initial term of leases entered into for space in the midtown markets is generally five to fifteen years. Tenants leasing space in excess of 10,000 square feet for an initial term of 10 years or longer often will negotiate an option to extend the term of the lease for one or two renewal periods, typically of five years each. The base rent during the initial term often will provide for agreed-upon periodic increases over the term of the lease. Base rent for renewal terms is most often based upon the then fair market rental value of the premises as of the commencement date of the applicable renewal term (determined by binding arbitration in the event the landlord and the tenant are unable to mutually agree upon the fair market value), though in rare cases base rent for a renewal period may be set at 95% of the then fair market rent. Very infrequently, leases may contain termination options whereby tenants can terminate their lease obligations upon payment of a penalty together with repayment of the unamortized portion of the landlord's transaction costs (e.g., brokerage commissions, free rent periods, tenant improvement allowances, etc.).

        In addition to base rent, the tenant will generally also pay its pro rata share of increases in real estate taxes and operating expenses for the building over a base year (which is typically the year during which the term of the lease commences) based upon the tenant's proportionate occupancy of the building. In some smaller leases (generally less than 10,000 square feet), in lieu of paying additional rent based upon increases in building operating expenses, base rent will be increased each year during the lease term by a set percentage on a compounding basis (though the tenant will still pay its pro rata share of increases in real estate taxes over a base year).

        Tenants typically receive a free rent period following commencement of the lease term which in some cases may coincide with the tenant's construction period.

        Electricity is most often supplied by the landlord either on a sub-metered basis at the landlord's cost plus a fixed percentage or a rent inclusion basis (i.e., a fixed fee is added to the base rent for electricity, which amount may increase based upon increases in electricity rates or increases in electrical usage by the tenant). Base building services other than electricity (such as heat, air conditioning and freight elevator service during business hours and base building cleaning) typically are provided at no additional cost, but are included in the building's operating expenses, with the tenant paying additional rent only for services which exceed base building services or for services which are provided other than during normal business hours.

        In a typical lease for a new tenant renting in excess of 10,000 feet, the landlord will deliver the premises with existing improvements demolished and any asbestos abated. In such instances, the landlord also typically will provide a tenant improvement allowance, which is a fixed sum that the landlord makes available to the tenant to reimburse the tenant for all or a portion of the tenant's initial construction of its premises. Such sum typically is payable as work progresses, upon submission of invoices for the cost of construction and lien waivers. However, in certain leases (most often for relatively small amounts of space), the landlord will construct the premises for the tenant at a cost to the landlord not to exceed an agreed upon amount with the tenant paying any excess. In addition, landlords may rent to a tenant a space that is "pre-built" (i.e., space that was constructed by the landlord in advance of lease signing and ready to move in with the tenant selecting paint and carpet colors).

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Occupancy

        The following table sets forth the weighted average occupancy rates at our office properties based on space leased as of December 31, 2011, 2010 and 2009:

	Percent Occupied as of December 31,
Property	2011			2010			2009
Manhattan Properties		92.5	%		92.9	%		95.0	%
Suburban Properties		86.2	%		87.3	%		88.7	%
Same-Store Properties(1)		90.3	%		89.4	%		N/A
Unconsolidated Joint Venture Properties		92.3	%		95.2	%		95.1	%
Portfolio		91.2	%		91.6	%		93.6	%

⁽¹⁾

Same-Store Properties for 2011 represents 45 of our 51 consolidated properties owned by us at January 1, 2010 and still owned by us at December 31, 2011 in the same manner. This excludes 28 West 44^th Street which was sold in 2011.

Rent Growth

        We estimated that rents in place at December 31, 2011 for all leases expiring in future periods in our Manhattan and Suburban consolidated properties were approximately 10.9% and 3.0%, respectively, below management's estimates of current market asking rents. Taking rents are typically lower than asking rents and may vary from property to property. We estimated that rents in place at December 31, 2011 for all leases expiring in future periods in our Manhattan and Suburban properties owned through unconsolidated joint ventures were approximately 8.8% and 9.9%, respectively, below management's estimates of current market asking rents. These comparative measures were approximately 5.0% and 5.1% at December 31, 2010 for the consolidated properties and 16.3% and 9.3% for the unconsolidated joint venture properties. As of December 31, 2011, approximately 43.6% and 35.0% of all leases in-place in our consolidated properties and unconsolidated joint venture properties, respectively, are scheduled to expire during the next five years. There can be no assurances that our estimates of current market rents are accurate, that market rents currently prevailing will not erode in the future or that we will realize any rent growth. However, we believe that rents, which in the current portfolio are below market, provide a potential for long-term internal growth.

Industry Segments

        We are a REIT that acquires, owns, repositions, manages and leases commercial office, retail and multi-family properties in the New York Metropolitan area and have two reportable segments: real estate, and debt and preferred equity investments. We evaluate real estate performance and allocate resources based on earnings contribution to income from continuing operations.

        At December 31, 2011, our real estate portfolio was primarily located in one geographical market, namely, the New York Metropolitan area. The primary sources of revenue are generated from tenant rents and escalations and reimbursement revenue. Real estate property operating expenses consist primarily of security, maintenance, utility costs, real estate taxes and ground rent expense (at certain applicable properties). As of December 31, 2011, one tenant in our portfolio contributed approximately 7.2% of our Portfolio annualized cash rent. No other tenant contributed more than 6.9% of our Portfolio annualized cash rent. Portfolio annualized cash rent includes our consolidated annualized cash rent and our share of joint venture annualized cash rent. No property contributed in excess of 8.4% of our consolidated total revenue for 2011. In addition, two debt and preferred equity investments each accounted for more than 10.0% of the revenue earned on debt and preferred equity investments in 2011. Our industry segments are discussed in Note 19, "Segment Reporting" in the accompanying consolidated financial statements.

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Employees

        At December 31, 2011, we employed approximately 1,047 employees, over 164 of who were managers and professionals, approximately 783 of whom were hourly-paid employees involved in building operations and approximately 100 of whom were clerical, data processing and other administrative employees. There are currently three collective bargaining agreements which cover the workforce that services substantially all of our properties.

Acquisitions

        During 2011, we acquired or consolidated joint venture interests on five properties for aggregate gross purchase prices of $2.0 billion encompassing 3.6 million square feet. In addition, we invested in four properties through joint ventures for aggregate gross purchase prices of $1.8 billion and encompassing 2.0 million square feet.

Dispositions

        During 2011, we sold 28 West 44^th Street for a gross contract price of $161.0 million. We recognized a gain of approximately $46.1 million on the sale of this property, which encompassed 0.4 million square feet. We also sold our partnership interest in 1551/1555 Broadway at an implied valuation of $276.8 million and recognized a gain of approximately $4.0 million on the sale of our interest.

Debt and Preferred Equity Investments

        During 2011, we originated or acquired approximately $622.5 million in debt and preferred equity investments (net of new discounts), inclusive of accretion of previous discounts and pay-in-kind interest. We also recorded approximately $600.3 million in sales, repayments, participations, foreclosures and loan loss reserves in 2011. Included in this was approximately $6.5 million of loan loss reserves, net of recoveries.

Offering/Financings

        In November 2011, we closed on a $1.5 billion 4-year revolving credit facility, with a 1-year as-of-right extension option, which currently bears interest at 150 basis points over LIBOR, based on the unsecured bond rating of Reckson Operating Partnership, L.P.

        We sold 6.7 million shares of common stock through our "at-the-market" equity offering programs raising net proceeds of $517.1 million which were used to repay certain of our existing indebtedness, make investments in additional properties and debt and preferred equity investments, and for general corporate purposes.

        We issued $250.0 million principal amount of 5.00% senior notes due 2018 at par. The net proceeds from the offering (approximately $246.5 million) were used to repay certain of our existing indebtedness, make investments in additional properties and debt and preferred equity investments, and for general corporate purposes.

        During 2011, we also closed on 15 mortgages and other loans payable, which are collateralized by our real estate, debt and preferred equity investments, totaling approximately $3.3 billion.

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ITEM 1A.    RISK FACTORS

Declines in the demand for office space in New York City, and in particular midtown Manhattan, as well as our Suburban markets, including Westchester County, Connecticut, New Jersey and Long Island, resulting from general economic conditions could adversely affect the value of our real estate portfolio and our results of operations and, consequently, our ability to service current debt and to pay dividends to stockholders.

        Most of our commercial office properties, based on square footage, are located in midtown Manhattan. As a result, our business is dependent on the condition of the New York City economy in general and the market for office space in midtown Manhattan in particular. Continuing weakness and uncertainty in the New York City economy could materially reduce the value of our real estate portfolio and our rental revenues, and thus adversely affect our cash flow and ability to service current debt and to pay dividends to stockholders. Similarly, continuing weakness and uncertainty in our suburban markets could adversely affect our cash flow and ability to service current debt and to pay dividends to stockholders.

We may be unable to renew leases or relet space as leases expire.

        When our tenants decide not to renew their leases upon their expiration, we may not be able to relet the space. Even if tenants do renew or we can relet the space, the terms of renewal or reletting, taking into account among other things, the cost of tenant improvements and leasing commissions, may be less favorable than the terms in the expired leases. As of December 31, 2011, approximately 7.0 million and 1.9 million square feet, representing approximately 40.0% and 65.0% of the rentable square feet, are scheduled to expire by December 31, 2016 at our consolidated properties and unconsolidated joint venture properties, respectively, and as of December 31, 2011, these leases had annualized escalated rent totaling approximately $448.6 million and $102.2 million, respectively. We also have leases with termination options beyond 2016. If we are unable to promptly renew the leases or relet the space at similar rates, our cash flow and ability to service debt and pay dividends to stockholders could be adversely affected.

The expiration of long term leases or operating sublease interests could adversely affect our results of operations.

        Our interests in 673 First Avenue, 420 Lexington Avenue, 461 Fifth Avenue, 711 Third Avenue, 625 Madison Avenue, 1185 Avenue of the Americas, all in Manhattan, and 1055 Washington Avenue, Stamford, Connecticut, are through either long-term leasehold or operating sublease interests in the land and the improvements, rather than by ownership of fee interest in the land. We have the ability to acquire the fee position at 461 Fifth Avenue for a fixed price on a specific date. Unless we can purchase a fee interest in the underlying land or extend the terms of these leases before their expiration, we will lose our right to operate these properties upon expiration of the leases, which would significantly adversely affect our results of operations. The average remaining term of these long-term leases as of December 31, 2011, including our unilateral extension rights on each of the properties, is approximately 41 years. Pursuant to the leasehold arrangement, we, as tenant under the operating sublease, perform the functions traditionally performed by landlords with respect to our subtenants. We are responsible for not only collecting rent from our subtenants, but also maintaining the property and paying expenses relating to the property. Our share of annualized cash rents of these properties at December 31, 2011 totaled approximately $244.2 million, or 21%, of our share of total Portfolio annualized cash rent.

Our results of operations rely on major tenants, including in the financial services sector, and insolvency, bankruptcy or receivership of these or other tenants could adversely affect our results of operations.

        Giving effect to leases in effect as of December 31, 2011 for consolidated properties and unconsolidated joint venture properties, as of that date, our five largest tenants, based on square footage leased, accounted for approximately 23.3% of our share of Portfolio annualized cash rent, with three tenants, Citigroup, Inc., Viacom International Inc. and Credit Suisse Securities (USA) LLC accounting for approximately 7.2%, 6.9% and 6.4% of our share of Portfolio annualized cash rent, respectively. In addition, the financial services sector accounted for approximately 39% of our Portfolio annualized cash rent as of December 31, 2011. This sector continues to experience significant turmoil. If current economic conditions persist or deteriorate, we may experience increases

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in past due accounts, defaults, lower occupancy and reduced effective rents, particularly in respect of our financial service tenants. Our business would be adversely affected if any of our major tenants became insolvent, declared bankruptcy, are put into receivership or otherwise refused to pay rent in a timely fashion or at all.

Adverse economic and geopolitical conditions in general and the Northeastern commercial office markets in particular could have a material adverse effect on our results of operations, financial condition and our ability to pay dividends to stockholders.

        Our business may be affected by the unprecedented volatility and illiquidity in the financial and credit markets and other market or economic challenges experienced by the U.S. economy or real estate industry as a whole. As a result of the economic downturn that began in the second half of 2007, demand for office and retail space declined nationwide due to bankruptcies, downsizing, layoffs and cost cutting. Real estate transactions and development opportunities lessened compared to the period prior to the current economic downturn and capitalization rates rose. As a result, the cost and availability of credit was, and may in down markets be, adversely affected by illiquid credit markets and wider credit spreads. Economic weakness and uncertainty, including concern about the stability of the markets generally and the strength of counterparties specifically has led, and may lead, many lenders and institutional investors to reduce, and in some cases, cease to provide funding to borrowers, and this may adversely affect our liquidity and financial condition, and the liquidity and financial condition of our tenants. Our business may also be adversely affected by local economic conditions, as substantially all of our revenues are derived from our properties located in the Northeast, particularly in New York, New Jersey and Connecticut. Because our portfolio consists primarily of commercial office buildings (as compared to a more diversified real estate portfolio) located principally in Manhattan, if negative economic conditions persist or deteriorate, then our results of operations, financial condition and ability to service current debt and to pay dividends to our stockholders may be adversely affected. Specifically, our business may be affected by the following conditions:

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significant job losses in the financial and professional services industries which may decrease demand for our office space, causing market rental rates and property values to be negatively impacted;

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our ability to borrow on terms and conditions that we find acceptable, or at all, may be limited, which could reduce our ability to pursue acquisition and development opportunities and refinance existing debt, reduce our returns from both our existing operations and our acquisition and development activities and increase our future interest expense;

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reduced values of our properties, which may limit our ability to dispose of assets at attractive prices or to obtain debt financing secured by our properties and may reduce the availability of unsecured loans; and

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reduced liquidity in debt markets and increased credit risk premiums for certain market participants, which may impair our ability to access capital.

        These conditions, which could have a material adverse effect on our results of operations, financial condition and ability to service debt and pay dividends to stockholders, may continue or worsen in the future.

We may suffer adverse consequences if our revenues decline since our operating costs do not necessarily decline in proportion to our revenue.

        We earn a significant portion of our income from renting our properties. Our operating costs, however, do not necessarily fluctuate in proportion to changes in our rental revenue. As a result, our costs will not necessarily decline even if our revenues do. Similarly, our operating costs could increase while our revenues stay flat or decline. In either such event, we may be forced to borrow to cover our costs, we may incur losses or we may not have cash available to service our debt and to pay dividends to our stockholders.

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We face risks associated with property acquisitions.

        We may acquire individual properties and portfolios of properties, including large portfolios that could significantly increase our size and alter our capital structure. Our acquisition activities may be exposed to, and their success may be adversely affected by, the following risks:

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even if we enter into an acquisition agreement for a property, it is usually subject to customary conditions to closing;

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we may be unable to finance acquisitions on favorable terms or at all;

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acquired properties may fail to perform as we expected;

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our estimates of the costs of repositioning or redeveloping acquired properties may be inaccurate;

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we may not be able to obtain adequate insurance coverage for new properties;

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acquired properties may be located in new markets where we may face risks associated with a lack of market knowledge or understanding of the local economy, lack of business relationships in the area and unfamiliarity with local governmental and permitting procedures; and

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we may be unable to quickly and efficiently integrate new acquisitions, particularly acquisitions of portfolios of properties, into our existing operations, and therefore our results of operations and financial condition could be adversely affected.

        We may acquire properties subject to liabilities and without any recourse, or with only limited recourse, with respect to unknown liabilities. As a result, if a liability were asserted against us arising from our ownership of those properties, we might have to pay substantial sums to settle it, which could adversely affect our cash flow. Unknown liabilities with respect to properties acquired might include:

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claims by tenants, vendors or other persons arising from dealing with the former owners of the properties;

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liabilities incurred in the ordinary course of business;

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claims for indemnification by general partners, directors, officers and others indemnified by the former owners of the properties; and

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liabilities for clean-up of undisclosed environmental contamination.

Competition for acquisitions may reduce the number of acquisition opportunities available to us and increase the costs of those acquisitions.

        We plan to continue to acquire properties as we are presented with attractive opportunities. We may face competition for acquisition opportunities from other investors, particularly those investors who can incur more leverage, and this competition may adversely affect us by subjecting us to the following risks:

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an inability to acquire a desired property because of competition from other well-capitalized real estate investors, including publicly traded and privately held REITs, private real estate funds, domestic and foreign financial institutions, life insurance companies, sovereign wealth funds, pension trusts, partnerships and individual investors; and

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an increase in the purchase price for such acquisition property, in the event we are able to acquire such desired property.

We rely on five large properties for a significant portion of our revenue.

        Five of our properties, 420 Lexington Avenue, One Madison Avenue, 1185 Avenue of the Americas, 1515 Broadway and 388-390 Greenwich Street, accounted for approximately 32% of our Portfolio annualized cash rent, which includes our share of joint venture annualized rent as of December 31, 2011. Our revenue and cash available for distribution to our stockholders would be materially adversely affected if any of these properties were materially damaged or destroyed. Additionally, our revenue and cash available to service debt and for distribution

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to our stockholders would be materially adversely affected if tenants at these properties fail to timely make rental payments due to adverse financial conditions or otherwise, default under their leases or filing for bankruptcy.

The continuing threat of terrorist attacks may adversely affect the value of our properties and our ability to generate cash flow.

        There may be a decrease in demand for space in New York City because it is considered at risk for future terrorist attacks, and this decrease may reduce our revenues from property rentals. In the aftermath of a terrorist attack, tenants in the New York City area may choose to relocate their business to less populated, lower-profile areas of the United States that those tenants believe are not as likely to be targets of future terrorist activity. This in turn could trigger a decrease in the demand for space in the New York City area, which could increase vacancies in our properties and force us to lease our properties on less favorable terms. As a result, the value of our properties and the level of our revenues could materially decline.

A terrorist attack could cause insurance premiums to increase significantly.

        We maintain "all-risk" property and rental value coverage (including coverage regarding the perils of flood, earthquake and terrorism) within two property insurance portfolios and liability insurance. The first property portfolio maintains a blanket limit of $750.0 million per occurrence, including terrorism, for the majority of the New York City properties in our portfolio. This policy expires on December 31, 2012. The second portfolio maintains a limit of $600.0 million per occurrence, including terrorism, for some New York City properties and the majority of the Suburban properties. The second property policy expires on December 31, 2012. Additional coverage may be purchased on a stand-alone basis for certain assets. We maintain liability policies which cover all our properties and provide limits of $201.0 million per occurrence and in the aggregate per location. The liability policies expire on October 31, 2012.

        In October 2006, we formed a wholly-owned taxable REIT subsidiary, Belmont Insurance Company, or Belmont, to act as a captive insurance company and be one of the elements of our overall insurance program. Belmont was formed in an effort to, among other reasons, stabilize to some extent the fluctuations of insurance market conditions. Belmont is licensed in New York to write Terrorism, NBCR (nuclear, biological, chemical, and radiological), General Liability, Environmental Liability and D&O coverage.

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Terrorism: Belmont acts as a direct property insurer with respect to a portion of our terrorism coverage for the New York City properties. Effective December 31, 2010, Belmont increased its terrorism coverage from $400.0 million to $650.0 million in a layer in excess of $100.0 million. In addition, Belmont purchased reinsurance to reinsure the retained insurable risk not otherwise covered under Terrorism Risk Insurance Program Reauthorization and Extension Act of 2007, or TRIPRA, as detailed below.

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NBCR: Belmont acts as a direct insurer of NBCR and since December 31, 2011, has provided coverage up to $750 million on the entire property portfolio for certified acts of terrorism above a program trigger of $100.0 million. Belmont is responsible for a small deductible and 15% of a loss, with the remaining 85% covered by the Federal government.

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General Liability: For the period commencing October 31, 2010, Belmont insures a retention on the general liability insurance of $150,000 per occurrence and a $2.1 million annual aggregate stop loss limit. We have secured excess insurance to protect against catastrophic liability losses above the $150,000 retention. Prior policy years carried a higher per occurrence deductible and/or higher aggregate stop loss. Belmont has retained a third party administrator to manage all claims within the retention and we anticipate that direct management of liability claims will improve loss experience and ultimately lower the cost of liability insurance in future years. In addition, we have an umbrella liability policy of $200.0 million per occurrence and in the aggregate on a per location basis.

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Environmental Liability: Belmont insures a deductible of $975,000 per occurrence in excess of $25,000 on a $25.0 million per occurrence/$30.0 million aggregate environmental liability policy covering the entire portfolio.

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        As long as we own Belmont, we are responsible for its liquidity and capital resources, and the accounts of Belmont are part of our consolidated financial statements. If we experience a loss and Belmont is required to pay under its insurance policy, we would ultimately record the loss to the extent of Belmont's required payment. Therefore, insurance coverage provided by Belmont should not be considered as the equivalent of third-party insurance, but rather as a modified form of self-insurance.

        The Terrorism Risk Insurance Act, or TRIA, which was enacted in November 2002, was renewed on December 31, 2007. Congress extended TRIA, now called TRIPRA (Terrorism Risk Insurance Program Reauthorization and Extension Act of 2007) until December 31, 2014. The law extends the federal Terrorism Insurance Program that requires insurance companies to offer terrorism coverage and provides for compensation for insured losses resulting from acts of certified terrorism, subject to the current program trigger of $100.0 million. Our debt instruments, consisting of mortgage loans secured by our properties (which are generally non-recourse to us), mezzanine loans, ground leases, our 2011 revolving credit facility and other corporate obligations, contain customary covenants requiring us to maintain insurance. Although we believe that we currently maintain sufficient insurance coverage to satisfy these obligations, there is no assurance that in the future we will be able to procure coverage at a reasonable cost. In such instances, there can be no assurance that the lenders or ground lessors under these instruments will not take the position that a total or partial exclusion from "all-risk" insurance coverage for losses due to terrorist acts is a breach of these debt and ground lease instruments allowing the lenders or ground lessors to declare an event of default and accelerate repayment of debt or recapture of ground lease positions. In addition, if lenders prevail in asserting that we are required to maintain full coverage for these risks, it could result in substantially higher insurance premiums.

        We have a 49.9% interest in the property at 100 Park Avenue, where we participate with Prudential, which carries a blanket policy of $500.0 million of "all-risk" property insurance, including terrorism coverage. We own One Madison Avenue, which is under a triple net lease with insurance provided by the tenant, Credit Suisse Securities (USA) LLC, or CS. We have a 50.6% interest in the property at 388 and 390 Greenwich Street, where we participate with SITQ, which is leased on a triple net basis to Citigroup, N.A., which provides insurance coverage directly. We monitor all triple net leases to ensure that tenants are providing adequate coverage. Other joint ventures may be covered under policies separate from our policies, at coverage limits which we deem to be adequate. We continually monitor these policies. Although we consider our insurance coverage to be appropriate, in the event of a major catastrophe, such as an act of terrorism, we may not have sufficient coverage to replace certain properties.

We face possible risks associated with the physical effects of climate change.

        We cannot predict with certainty whether climate change is occurring and, if so, at what rate. However, the physical effects of climate change could have a material adverse effect on our properties, operations and business. For example, we own interests in commercial office properties in the New York Metropolitan area, primarily in midtown Manhattan. Our investments in the New York Metropolitan area also include investments in Brooklyn, Queens, Long Island, Westchester County, Connecticut and New Jersey. To the extent climate change causes changes in weather patterns, our markets could experience increases in storm intensity and rising sea-levels. Over time, these conditions could result in declining demand for office space in our buildings or the inability of us to operate the buildings at all. Climate change may also have indirect effects on our business by increasing the cost of (or making unavailable) property insurance on terms we find acceptable, increasing the cost of energy and increasing the cost of snow removal at our properties. There can be no assurance that climate change will not have a material adverse effect on our properties, operations or business.

Leasing office space to smaller and growth-oriented businesses could adversely affect our cash flow and results of operations.

        Many of the tenants in our properties are smaller, growth-oriented businesses that may not have the financial strength of larger corporate tenants. Smaller companies generally experience a higher rate of failure than large businesses. Growth-oriented firms may also seek other office space as they develop. Leasing office space to these

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companies could create a higher risk of tenant defaults, turnover and bankruptcies, which could adversely affect our distributable cash flow and results of operations.

Debt financing, financial covenants, degree of leverage, and increases in interest rates could adversely affect our economic performance.

Scheduled debt payments could adversely affect our results of operations.

        Cash flow could be insufficient to pay dividends and meet the payments of principal and interest required under our current mortgages and other indebtedness, including our 2011 revolving credit facility, senior unsecured notes, debentures and indebtedness outstanding at our joint venture properties. The total principal amount of our outstanding consolidated indebtedness was approximately $6.0 billion as of December 31, 2011, consisting of approximately $350.0 million under our 2011 revolving credit facility, $1.3 billion under our senior unsecured notes, $100.0 million under our junior subordinated deferrable interest debentures and approximately $4.3 billion of non-recourse mortgages and loans payable on 22 of our investments and a recourse loan on one of our investments. In addition, we could increase the amount of our outstanding indebtedness in the future, in part by borrowing under our 2011 revolving credit facility, which had $1.1 billion undrawn capacity as of December 31, 2011. Our 2011 revolving credit facility matures in November 2015 and has a one-year as-of-right extension option. As of December 31, 2011, the total principal amount of non-recourse indebtedness outstanding at the joint venture properties was approximately $4.1 billion, of which our proportionate share was approximately $1.8 billion.

        If we are unable to make payments under our 2011 revolving credit facility, all amounts due and owing at such time shall accrue interest at a rate equal to 2% higher than the rate at which each draw was made. If we are unable to make payments under our senior unsecured notes, the principal and unpaid interest will become immediately payable. If a property is mortgaged to secure payment of indebtedness and we are unable to meet mortgage payments, the mortgagee could foreclose on the property, resulting in loss of income and asset value. Foreclosure on mortgaged properties or an inability to make payments under our 2011 revolving credit facility or our senior unsecured notes would have a negative impact on our financial condition and results of operations.

        We may not be able to refinance existing indebtedness, which may require substantial principal payments at maturity. In 2012, approximately $119.4 million of corporate indebtedness, no debt on our consolidated properties and $176.5 million of debt on our unconsolidated joint venture properties will mature. At the present time we intend to exercise extension options, repay or refinance the debt associated with our properties on or prior to their respective maturity dates. At the time of refinancing, prevailing interest rates or other factors, such as the possible reluctance of lenders to make commercial real estate loans may result in higher interest rates. Increased interest expense on the refinanced debt would adversely affect cash flow and our ability to service debt and pay dividends to stockholders. If any principal payments due at maturity cannot be repaid, refinanced or extended, our cash flow will not be sufficient in all years to repay all maturing debt.

Financial covenants could adversely affect our ability to conduct our business.

        The mortgages and mezzanine loans on our properties generally contain customary negative covenants that limit our ability to further mortgage the properties, to enter into new leases without lender consent or materially modify existing leases, and to discontinue insurance coverage, among other things. In addition, our 2011 revolving credit facility and senior unsecured notes contain restrictions and requirements on our method of operations. Our 2011 revolving credit facility and our unsecured notes also require us to maintain designated ratios, including but not limited to, total debt-to-assets, debt service coverage and unencumbered assets-to-unsecured debt. These restrictions could adversely affect our results of operations, our ability to pay debt obligations and our ability to pay dividends to stockholders.

Rising interest rates could adversely affect our cash flow.

        Advances under our 2011 revolving credit facility and certain property-level mortgage debt bear interest at a variable rate. These consolidated variable rate borrowings totaled approximately $1.3 billion at December 31, 2011. In addition, we could increase the amount of our outstanding variable rate debt in the future, in part by

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borrowing under our 2011 revolving credit facility, which had $1.1 billion available for draw as of December 31, 2011. Borrowings under our 2011 revolving credit facility currently bear interest at the 30-day LIBOR, plus a spread which was 150 basis points at December 31, 2011. As of December 31, 2011, borrowings under our 2011 revolving credit facility and junior subordinated deferrable interest debentures totaled $350.0 million and $100.0 million, respectively, and bore interest at 1.98% and 5.61%, respectively. We may incur indebtedness in the future that also bears interest at a variable rate or may be required to refinance our debt at higher rates. Accordingly, increases in interest rates above that which we anticipated based upon historical trends could adversely affect our results of operations and financial conditions. At December 31, 2011, a hypothetical 100 basis point increase in interest rates across each of our variable interest rate instruments would increase our annual interest costs by approximately $12.3 million and would increase our share of joint venture annual interest costs by approximately $4.8 million. Accordingly, increases in interest rates could adversely affect our ability to continue to pay dividends to stockholders.

Failure to hedge effectively against interest rate changes may adversely affect results of operations.

        The interest rate hedge instruments we use to manage some of our exposure to interest rate volatility involve risk, such as the risk that counterparties may fail to honor their obligations under these arrangements. In addition, these arrangements may not be effective in reducing our exposure to interest rate changes. Failure to hedge effectively against interest rate changes may adversely affect our results of operations.

No limitation on debt could adversely affect our cash flow.

        Our organizational documents do not contain any limitation on the amount of indebtedness we may incur. As of December 31, 2011, assuming the conversion of all outstanding units of the operating partnership into shares of our common stock, our combined debt-to-market capitalization ratio, including our share of joint venture debt of approximately $1.8 billion, was approximately 55.7%. Our market capitalization is variable and does not necessarily reflect the fair market value of our assets at all times. We also consider factors other than market capitalization in making decisions regarding the incurrence of indebtedness, such as the purchase price of properties to be acquired with debt financing, the estimated market value of our properties upon refinancing and the ability of particular properties and our business as a whole to generate cash flow to cover expected debt service. Any changes that increase our debt to market capitalization percentage could be viewed negatively by investors. As a result, our stock price could decrease.

Debt and Preferred Equity Investments could cause us to incur expenses, which could adversely affect our results of operations.

        We owned first mortgages, mezzanine loans, junior participations and preferred equity interests in 23 investments with an aggregate net book value of approximately $985.9 million at December 31, 2011. Such investments may or may not be recourse obligations of the borrower and are not insured or guaranteed by governmental agencies or otherwise. In the event of a default under these obligations, we may have to take possession of the collateral securing these interests. Borrowers may contest enforcement of foreclosure or other remedies, seek bankruptcy protection against such enforcement and/or bring claims for lender liability in response to actions to enforce their obligations to us. Relatively high loan-to-value ratios and declines in the value of the property may prevent us from realizing an amount equal to our investment upon foreclosure or realization even if we make substantial improvements or repairs to the underlying real estate in order to maximize such property's investment potential.

        We maintain and regularly evaluate financial reserves to protect against potential future losses. Our reserves reflect management's judgment of the probability and severity of losses and the value of the underlying collateral. We cannot be certain that our judgment will prove to be correct and that our reserves will be adequate over time to protect against future losses because of unanticipated adverse changes in the economy or events adversely affecting specific properties, assets, tenants, borrowers, industries in which our tenants and borrowers operate or markets in which our tenants and borrowers or their properties are located. We recorded approximately $10.9 million in loan loss reserves and charge offs in 2011 on debt and preferred equity investments being held to

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maturity and $4.4 million in recoveries of loans previously reserved. If our reserves for credit losses prove inadequate, we could suffer losses which would have a material adverse effect on our financial performance, the market prices of our securities and our ability to pay dividends to stockholders.

Special servicing activities could result in liability to us.

        We provide special servicing activities on behalf of third parties. We have been rated by Fitch and S&P to provide such services. An intended or unintended breach of the servicing standards and/or our fiduciary duties to bondholders could result in material liability to us.

Joint investments could be adversely affected by our lack of sole decision-making authority and reliance upon a co-venturer's financial condition.

        We co-invest with third parties through partnerships, joint ventures, co-tenancies or other structures, acquiring non-controlling interests in, or sharing responsibility for managing the affairs of, a property, partnership, joint venture, co-tenancy or other entity. Therefore, we will not be in a position to exercise sole decision-making authority regarding such property, partnership, joint venture or other entity. Investments in partnerships, joint ventures, or other entities may involve risks not present were a third party not involved, including the possibility that our partners, co-tenants or co-venturers might become bankrupt or otherwise fail to fund their share of required capital contributions. Additionally, our partners or co-venturers might at any time have economic or other business interests or goals, which are inconsistent with our business interests or goals. These investments may also have the potential risk of impasses on decisions such as a sale, because neither we, nor the partner, co-tenant or co-venturer would have full control over the partnership or joint venture. Consequently, actions by such partner, co-tenant or co-venturer might result in subjecting properties owned by the partnership or joint venture to additional risk. In addition, we may in specific circumstances be liable for the actions of our third-party partners, co-tenants or co-venturers. As of December 31, 2011, our unconsolidated joint ventures owned 22 properties and we had an aggregate cost basis in these joint ventures totaling approximately $893.9 million. As of December 31, 2011, our share of unconsolidated joint venture debt, which is non-recourse to us, totaled approximately $1.8 billion.

Certain of our joint venture agreements contain terms in favor of our partners that could have an adverse effect on the value of our investments in the joint ventures.

        Each of our joint venture agreements has been individually negotiated with our partner in the joint venture and, in some cases, we have agreed to terms that are more favorable to our partner in the joint venture than to us. For example, our partner may be entitled to a specified portion of the profits of the joint venture before we are entitled to any portion of such profits and our partner may have rights to buy our interest in the joint venture, to force us to buy the partner's interest in the joint venture or to compel the sale of the property owned by such joint venture. These rights may permit our partner in a particular joint venture to obtain a greater benefit from the value or profits of the joint venture than us, which could have an adverse effect on the value of our investment in the joint venture and on our financial condition and results of operations. We may also enter into similar arrangements in the future.

We may incur costs to comply with environmental laws.

        We are subject to various federal, state and local environmental laws. These laws regulate our use, storage, disposal and management of hazardous substances and wastes and can impose liability on property owners or operators for the clean-up of certain hazardous substances released on a property and any associated damage to natural resources without regard to whether the release was legal or whether it was caused by the property owner or operator. The presence of hazardous substances on our properties may adversely affect occupancy and our ability to develop or sell or borrow against those properties. In addition to potential liability for clean-up costs, private plaintiffs may bring claims for personal injury, property damage or for similar reasons. Various laws also impose liability for the clean-up of contamination at any facility (e.g., a landfill) to which we have sent hazardous substances for treatment or disposal, without regard to whether the materials were transported, treated and

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disposed in accordance with law. Being held responsible for such a clean-up could result in significant cost to us and have a material adverse effect on our financial condition and results of operations.

We may incur significant costs complying with the Americans with Disabilities Act and other regulatory and legal requirements.

        Our properties may be subject to risks relating to current or future laws including laws benefiting disabled persons, and other state or local zoning, construction or other regulations. These laws may require significant property modifications in the future, which could result in fines being levied against us in the future. The occurrence of any of these events could have an adverse impact on our cash flows and ability to pay dividends to stockholders.

        Under the Americans with Disabilities Act, or ADA, all public accommodations must meet federal requirements related to access and use by disabled persons. Additional federal, state and local laws also may require modifications to our properties, or restrict our ability to renovate our properties. We have not conducted an audit or investigation of all of our properties to determine our compliance. If one or more of our properties is not in compliance with the ADA or other legislation, then we may be required to incur additional costs to bring the property into compliance with the ADA or similar state or local laws. We cannot predict the ultimate amount of the cost of compliance with ADA or other legislation. If we incur substantial costs to comply with the ADA and any other legislation, our financial condition, results of operations and cash flow and/or ability to satisfy our debt service obligations and to pay dividends to our stockholders could be adversely affected.

Our charter documents, debt instruments and applicable law may hinder any attempt to acquire us, which could discourage takeover attempts and prevent our stockholders from receiving a premium over the market price of our stock.

Provisions of our articles of incorporation and bylaws could inhibit changes in control.

        A change of control of our company could benefit stockholders by providing them with a premium over the then-prevailing market price of our stock. However, provisions contained in our articles of incorporation and bylaws may delay or prevent a change in control of our company. These provisions, discussed more fully below, are:

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staggered board of directors;

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ownership limitations; and

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the board of director's ability to issue additional common stock and preferred stock without stockholder approval.

Our board of directors is staggered into three separate classes.

        Our board of directors is divided into three classes. The terms of the class I, class II and class III directors expire in 2013, 2014 and 2012, respectively. Our staggered board may deter a change in control because of the increased time period necessary for a third party to acquire control of the board.

We have a stock ownership limit.

        To remain qualified as a REIT for federal income tax purposes, not more than 50% in value of our outstanding capital stock may be owned by five or fewer individuals at any time during the last half of any taxable year. For this purpose, stock may be "owned" directly, as well as indirectly under certain constructive ownership rules, including, for example, rules that attribute stock held by one family member to another family member. In part, to avoid violating this rule regarding stock ownership limitations and maintain our REIT qualification, our articles of incorporation prohibit ownership by any single stockholder of more than 9.0% in value or number of shares of our common stock. Limitations on the ownership of preferred stock may also be imposed by us.

        Our board of directors has the discretion to raise or waive this limitation on ownership for any stockholder if deemed to be in our best interest. To obtain a waiver, a stockholder must present the board and our tax counsel with evidence that ownership in excess of this limit will not affect our present or future REIT status.

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        Absent any exemption or waiver, stock acquired or held in excess of the limit on ownership will be transferred to a trust for the exclusive benefit of a designated charitable beneficiary, and the stockholder's rights to distributions and to vote would terminate. The stockholder would be entitled to receive, from the proceeds of any subsequent sale of the shares transferred to the charitable trust, the lesser of: the price paid for the stock or, if the owner did not pay for the stock, the market price of the stock on the date of the event causing the stock to be transferred to the charitable trust; and the amount realized from the sale.

        This limitation on ownership of stock could delay or prevent a change in control of our company.

Debt may not be assumable.

        We have approximately $1.7 billion in unsecured corporate debt as of December 31, 2011. Certain of this debt in not assumable by a potential purchaser and may be subject to significant prepayment penalties.

Maryland takeover statutes may prevent a change of control of our company, which could depress our stock price.

        Under Maryland law, "business combinations" between a Maryland corporation and an interested stockholder or an affiliate of an interested stockholder are prohibited for five years after the most recent date on which the interested stockholder becomes an interested stockholder. These business combinations include a merger, consolidation, stock exchange or, in circumstances specified in the statute, an asset transfer or issuance or reclassification of equity securities. An interested stockholder is defined as:

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any person who beneficially owns 10% or more of the voting power of the corporation's outstanding shares; or

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an affiliate or associate of the corporation who, at any time within the two-year period prior to the date in question, was the beneficial owner of 10% or more of the voting power of the then outstanding voting stock of the corporation.

        A person is not an interested stockholder under the statute if the board of directors approves in advance the transaction by which he otherwise would have become an interested stockholder.

        After the five-year prohibition, any business combination between the Maryland corporation and an interested stockholder generally must be recommended by the board of directors of the corporation and approved by the affirmative vote of at least:

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80% of the votes entitled to be cast by holders of outstanding shares of voting stock of the corporation, voting together as a single group; and

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two-thirds of the votes entitled to be cast by holders of voting stock of the corporation other than shares held by the interested stockholder with whom or with whose affiliate the business combination is to be effected or held by an affiliate or associate of the interested stockholder.

        The business combination statute may discourage others from trying to acquire control of us and increase the difficulty of consummating any offer, including potential acquisitions that might involve a premium price for our common stock or otherwise be in the best interest of our stockholders.

        In addition, Maryland law provides that "control shares" of a Maryland corporation acquired in a "control share acquisition" will not have voting rights except to the extent approved by a vote of two-thirds of the votes entitled to be cast on the matter, excluding shares of stock owned by the acquiror, by officers of the corporation or by directors who are employees of the corporation, under the Maryland Control Share Acquisition Act. "Control shares" means voting shares of stock that, if aggregated with all other shares of stock owned by the acquiror or in respect of which the acquiror is able to exercise or direct the exercise of voting power (except solely by virtue of a revocable proxy), would entitle the acquiror to exercise voting power in electing directors within one of the following ranges of voting power: (i) one-tenth or more but less than one-third; (ii) one-third or more but less than a majority; or (iii) a majority or more of all voting power. A "control share acquisition" means the

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acquisition of ownership of, or the power to direct the exercise of voting power with respect to, issued and outstanding control shares, subject to certain exceptions.

        We have opted out of these provisions of the Maryland General Corporation Law, or the MGCL, with respect to business combinations and control share acquisitions by resolution of our board of directors and a provision in our bylaws, respectively. However, in the future, our board of directors may reverse its decision by resolution and elect to opt in to the MGCL's business combination provisions, or amend our bylaws and elect to opt in to the MGCL's control share provisions.

        Additionally, the MGCL permits our board of directors, without stockholder approval and regardless of what is provided in our charter or bylaws, to implement takeover defenses, some of which we do not have. Such takeover defenses, if implemented, may have the effect of inhibiting a third party from making us an acquisition proposal or of delaying, deferring or preventing a change in our control under circumstances that otherwise could provide our stockholders with an opportunity to realize a premium over the then-current market price.

Future issuances of common stock, preferred stock and convertible debt could dilute existing stockholders' interests.

        Our articles of incorporation authorize our board of directors to issue additional shares of common stock, preferred stock and convertible equity or debt without stockholder approval. Any such issuance could dilute our existing stockholders' interests. Also, any future series of preferred stock may have voting provisions that could delay or prevent a change of control of our company.

Changes in market conditions could adversely affect the market price of our common stock.

        As with other publicly traded equity securities, the value of our common stock depends on various market conditions, which may change from time to time. In addition to the current economic environment and continued volatility in the securities and credit markets, the following market conditions may affect the value of our common stock:

•

the general reputation of REITs and the attractiveness of our equity securities in comparison to other equity securities, including securities issued by other real estate-based companies;

•

our financial performance; and

•

general stock and bond market conditions.

        The market value of our common stock is based primarily upon the market's perception of our growth potential and our current and potential future earnings and cash dividends. Consequently, our common stock may trade at prices that are higher or lower than our net asset value per share of common stock. If our future earnings or cash dividends are less than expected, the market price of our common stock could diminish.

The trading price of our common stock has been and may continue to be subject to wide fluctuations.

        Between January 1, 2011 and December 31, 2011, the closing sale price of our common stock on the New York Stock Exchange, or the NYSE, ranged from $55.14 to $90.01 per share. Our stock price may fluctuate in response to a number of events and factors, such as those described elsewhere in this "Risk Factors" section. Additionally, the amount of our leverage may hinder the demand for our common stock, which could have a material adverse effect on the market price of our common stock.

Market interest rates may have an effect on the value of our common stock.

        If market interest rates go up, prospective purchasers of shares of our common stock may expect a higher distribution rate on our common stock. Higher market interest rates would not, however, result in more funds for us to distribute and, to the contrary, would likely increase our borrowing costs and potentially decrease funds

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available for distribution. Thus, higher market interest rates could cause the market price of our common stock to go down.

Limitations on our ability to sell or reduce the indebtedness on specific mortgaged properties could adversely affect the value of our common stock.

        We acquired the property located at 609 Fifth Avenue, New York, New York in June 2006 and have agreed not to take certain action before January 2014 that would adversely affect the tax positions of certain of the partners who held interests in this property prior to the acquisition.

        In connection with future acquisitions of interests in properties, we may agree to restrictions on our ability to sell or refinance the acquired properties. These limitations could have adverse consequences on our business and result in a material adverse effect on our financial condition and results of operations.

We face potential conflicts of interest.

There are potential conflicts of interest between us and Mr. Green.

        There is a potential conflict of interest relating to the disposition of certain property contributed to us by Stephen L. Green, and his family in our initial public offering. Mr. Green serves as the chairman of our board of directors and is an executive officer. As part of our formation, Mr. Green contributed appreciated property, with a net book value of $73.5 million, to our operating partnership in exchange for units of limited partnership interest in the operating partnership. He did not recognize any taxable gain as a result of the contribution. The operating partnership, however, took a tax basis in the contributed property equal to that of the contributing unitholder. The fair market value of the property contributed by him exceeded his tax basis by approximately $34.0 million at the time of contribution. The difference between fair market value and tax basis at the time of contribution represents a built-in gain. If we sell a property in a transaction in which a taxable gain is recognized, for tax purposes the built-in gain would be allocated solely to him and not to us. As a result, Mr. Green has a conflict of interest if the sale of a property, he contributed, is in our best interest but not his.

        There is a potential conflict of interest relating to the refinancing of indebtedness specifically allocated to Mr. Green. Mr. Green would recognize gain if he were to receive a distribution of cash from the operating partnership in an amount that exceeds his tax basis in his partnership units. His tax basis includes his share of debt, including mortgage indebtedness, owed by our operating partnership. If our operating partnership were to retire such debt, then he would experience a decrease in his share of liabilities, which, for tax purposes, would be treated as a distribution of cash to him. To the extent the deemed distribution of cash exceeded his tax basis, he would recognize gain.

Members of management may have a conflict of interest over whether to enforce terms of agreements with entities which senior management, directly or indirectly, has an affiliation.

        Through Alliance Building Services, or Alliance, First Quality Maintenance, L.P., provides cleaning, extermination and related services, Classic Security LLC provides security services, Bright Star Couriers LLC provides messenger services, and Onyx Restoration Works provides restoration services with respect to certain properties owned by us. Alliance is partially owned by Gary Green, a son of Stephen L. Green, the chairman of our board of directors. Our company and our tenants accounted for approximately 25.5% of Alliance's 2011 estimated total revenue. The contracts pursuant to which these services are provided are not the result of arm's length negotiations and, therefore, there can be no assurance that the terms and conditions are not less favorable than those which could be obtained from third parties providing comparable services. In addition, to the extent that we choose to enforce our rights under any of these agreements, we may determine to pursue available remedies, such as actions for damages or injunctive relief, less vigorously than we otherwise might because of our desire to maintain our ongoing relationship with Gary Green.

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Members of management may have a conflict of interest over whether to enforce terms of senior management's employment and noncompetition agreements.

        Stephen Green, Marc Holliday, Andrew Mathias, Andrew Levine and James Mead entered into employment and noncompetition agreements with us pursuant to which they have agreed not to actively engage in the acquisition, development or operation of office real estate in the New York City Metropolitan area. For the most part, these restrictions apply to the executive both during his employment and for a period of time thereafter. Each executive is also prohibited from otherwise disrupting or interfering with our business through the solicitation of our employees or clients or otherwise. To the extent that we choose to enforce our rights under any of these agreements, we may determine to pursue available remedies, such as actions for damages or injunctive relief, less vigorously than we otherwise might because of our desire to maintain our ongoing relationship with the individual involved. Additionally, the non-competition provisions of these agreements despite being limited in scope and duration, could be difficult to enforce, or may be subject to limited enforcement, should litigation arise over them in the future. Mr. Green also has interests in two properties in Manhattan, which are exempt from the non-competition provisions of his employment and non-competition agreement.

Our failure to qualify as a REIT would be costly.

        We believe we have operated in a manner to qualify as a REIT for federal income tax purposes and intend to continue to so operate. Many of the REIT compliance requirements, however, are highly technical and complex. The determination that we are a REIT requires an analysis of factual matters and circumstances. These matters, some of which are not totally within our control, can affect our qualification as a REIT. For example, to qualify as a REIT, at least 95% of our gross income must come from designated sources that are listed in the REIT tax laws. We are also required to distribute to stockholders at least 90% of our REIT taxable income excluding capital gains. The fact that we hold our assets through the operating partnership and its subsidiaries further complicates the application of the REIT requirements. Even a technical or inadvertent mistake could jeopardize our REIT status. Furthermore, Congress and the Internal Revenue Service, which we refer to as the IRS, might make changes to the tax laws and regulations, and the courts might issue new rulings that make it more difficult, or impossible, for us to remain qualified as a REIT.

        If we fail to qualify as a REIT, we would be subject to federal income tax at regular corporate rates. Also, unless the IRS grants us relief under specific statutory provisions, we would remain disqualified as a REIT for four years following the year in which we first failed to qualify. If we failed to qualify as a REIT, we would have to pay significant income taxes and would therefore have less money available for investments or to pay dividends to stockholders. This would likely have a significant adverse effect on the value of our securities. In addition, the REIT tax laws would no longer require us to make any distributions to stockholders.

We may change the dividend policy for our common stock in the future.

        Recent Internal Revenue Service revenue procedures allowed us to satisfy the REIT income distribution requirements with respect to our 2008 through 2011 taxable years by distributing up to 90% of any of our dividend distributions for any such year in shares of our common stock in lieu of paying the dividend entirely in cash, so long as we followed a process allowing our stockholders to elect cash or stock subject to a cap that we would impose on the maximum amount of cash that would be paid. We did not utilize this procedure for 2008, 2009, 2010 or 2011 and the Internal Revenue Service has not renewed the procedure for later years. However, the procedure is grounded in provisions of the Internal Revenue Code and Treasury Regulations and we reserve the right to pay a portion of our dividends with shares of our common stock in the future. In the event that we pay a portion of a dividend with shares of our common stock, taxable U.S. stockholders would be required to pay tax on the entire amount of the dividend, including the portion paid with shares of common stock, in which case such stockholders might have to pay the tax using cash from other sources. If a U.S. stockholder sells the stock it receives as a dividend in order to pay this tax, the sales proceeds may be less than the amount included in income with respect to the dividend, depending on the market price of our stock at the time of the sale. Furthermore, with respect to non-U.S. stockholders, we may be required to withhold U.S. tax with respect to such dividend,

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including in respect of all or a portion of such dividend that is payable in stock. In addition, if a significant number of our stockholders sell shares of our common stock in order to pay taxes owed on dividends, such sales could put downward pressure on the market price of our common stock. Our board of directors will continue to evaluate our dividend policy on a quarterly basis as it monitors the capital markets and the impact of the economy on our operations. The decision to authorize and pay dividends on our common stock in the future, as well as the timing, amount and composition of any such future dividends, will be at the sole discretion of our board of directors in light of conditions then existing, including the Company's earnings, financial condition, capital requirements, debt maturities, the availability of capital, applicable REIT and legal restrictions and general overall economic conditions and other factors.

Previously enacted tax legislation reduces tax rates for dividends paid by non-REIT corporations.

        Under certain previously enacted tax legislation, the maximum tax rate on dividends to individuals has generally been reduced to 15% (from January 1, 2003 through December 31, 2012). The reduction in rates on dividends is generally not applicable to dividends paid by a REIT except in limited circumstances that we do not contemplate. Although this legislation does not adversely affect the taxation of REITs or dividends paid by REITs, the favorable treatment of regular corporate dividends could cause investors who are individuals to consider stock of non-REIT corporations that pay dividends as relatively more attractive than stocks of REITs. It is not possible to determine whether such a change in perceived relative value has occurred or what the effect, if any, this legislation has had or will have in the future on the market price of our stock.

We are dependent on external sources of capital.

        Because of distribution requirements imposed on us to qualify as a REIT, it is not likely that we will be able to fund all future capital needs, including acquisitions, from income from operations. We therefore will have to rely on third-party sources of capital, which may or may not be available on favorable terms or at all. Our access to third-party sources of capital depends on a number of things, including the market's perception of our growth potential and our current and potential future earnings. In addition, we anticipate having to raise money in the public equity and debt markets with some regularity and our ability to do so will depend upon the general conditions prevailing in these markets. At any time conditions may exist which effectively prevent us, or REITs in general, from accessing these markets. Moreover, additional equity offerings may result in substantial dilution of our stockholders' interests, and additional debt financing may substantially increase our leverage.

We face significant competition for tenants.

        The leasing of real estate is highly competitive. The principal means of competition are rent, location, services provided and the nature and condition of the facility to be leased. We directly compete with all owners and developers of similar space in the areas in which our properties are located.

        Our commercial office properties are concentrated in highly developed areas of midtown Manhattan and certain Suburban central business districts, or CBDs. Manhattan is the largest office market in the United States. The number of competitive office properties in Manhattan and CBDs in which our Suburban properties are located (which may be newer or better located than our properties) could have a material adverse effect on our ability to lease office space at our properties, and on the effective rents we are able to charge.

Loss of our key personnel could harm our operations.

        We are dependent on the efforts of Marc Holliday, our chief executive officer, and Andrew Mathias, our president. These officers have employment agreements which expire in January 2013 and December 2013, respectively. A loss of the services of either of these individuals could adversely affect our operations.

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Our business and operations would suffer in the event of system failures or cyber security attacks.

        Despite system redundancy, the implementation of security measures and the existence of a Disaster Recovery Plan for our internal information technology systems, our systems are vulnerable to damages from any number of sources, including energy blackouts, natural disasters, terrorism, war, telecommunication failures and cyber security attacks, such as computer viruses or unauthorized access. Any system failure or accident that causes interruptions in our operations could result in a material disruption to our business. We may also incur additional costs to remedy damages caused by such disruptions. Any compromise of our security could also result in a violation of applicable privacy and other laws, significant legal and financial exposure, damage to our reputation, loss or misuse of the information and a loss of confidence in our security measures, which could harm our business.

Compliance with changing or new regulation applicable to corporate governance and public disclosure may result in additional expenses, affect our operations and affect our reputation.

        Changing or new laws, regulations and standards relating to corporate governance and public disclosure, including SEC regulations and NYSE rules, can create uncertainty for public companies. These changed or new laws, regulations and standards are subject to varying interpretations in many cases due to their lack of specificity. As a result, their application in practice may evolve over time as new guidance is provided by regulatory and governing bodies, which could result in continuing uncertainty regarding compliance matters and higher costs necessitated by ongoing revisions to disclosure and governance practices. We are committed to maintaining high standards of corporate governance and public disclosure. If our efforts to comply with new or changed laws, regulations and standards differ from the activities intended by regulatory or governing bodies due to ambiguities related to practice, our reputation may be harmed.

        As a result, our efforts to comply with evolving laws, regulations and standards have resulted in, and are likely to continue to result in, increased general and administrative expenses and a diversion of management time and attention from revenue-generating activities to compliance activities. In particular, our efforts to comply with Section 404 of the Sarbanes-Oxley Act of 2002 and the related regulations regarding our required assessment of our internal controls over financial reporting and our external auditors' audit of that assessment have required the commitment of significant financial and managerial resources. In addition, it has become more difficult and expensive for us to obtain director and officer liability insurance. We expect these efforts to require the continued commitment of significant resources. Further, our directors, chief executive officer and chief financial officer could face an increased risk of personal liability in connection with the performance of their duties. As a result, we may have difficulty attracting and retaining qualified directors and executive officers, which could harm our business.

Forward-Looking Statements May Prove Inaccurate

        See Item 7 "Management's Discussion and Analysis of Financial Condition and Results of Operations—Forward-looking Information" for additional disclosure regarding forward-looking statements.

ITEM 1B.    UNRESOLVED STAFF COMMENTS

        As of December 31, 2011, we did not have any unresolved comments with the staff of the SEC.

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ITEM 2.    PROPERTIES

Our Portfolio

General

        As of December 31, 2011, we owned or held interests in 26 consolidated and 7 unconsolidated commercial office properties encompassing approximately 18.4 million rentable square feet and approximately 6.2 million rentable square feet, respectively, located primarily in midtown Manhattan. Certain of these properties include at least a small amount of retail space on the lower floors, as well as basement/storage space. As of December 31, 2011, our portfolio also included ownership interests in 25 consolidated and 6 unconsolidated commercial office properties located in Brooklyn, Queens, Long Island, Westchester County, Connecticut and New Jersey encompassing approximately 3.9 million rentable square feet and approximately 2.9 million rentable square feet, respectively. We refer to these properties as our Suburban assets.

        We also owned investments in nine stand-alone retail properties encompassing approximately 349,282 square feet, seven development properties encompassing approximately 1,395,838 square feet and three land interests as of December 31, 2011. In addition, we manage three office properties owned by third parties and affiliated companies encompassing approximately 0.9 million rentable square feet.

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        The following table sets forth certain information with respect to each of the Manhattan and Suburban office and retail properties in the portfolio as of December 31, 2011:

Manhattan Properties	Year Built/ Renovated		SubMarket	Approximate Rentable Square Feet		Percentage of Portfolio Rentable Square Feet (%)		Percent Leased (%)		Annualized Cash Rent ($'s)(1)		Percentage of Portfolio Annualized Cash Rent (%)(2)		Number of Tenants		Annualized Cash Rent per Leased Square Foot ($)(3)		Annualized Net Effective Cash Rent per Leased Square Foot ($)(4)
CONSOLIDATED PROPERTIES
"Same Store"
100 Church Street		1959/2010	Downtown		1,047,500		3		70.9		27,249,372		2		13		37.33		37.06
120 West 45th Street		1998	Midtown		440,000		1		84.3		22,021,056		2		25		58.43		59.71
220 East 42nd Street		1929	Grand Central		1,135,000		4		95.2		47,646,300		4		31		43.46		34.79
317 Madison Avenue		1920/2004	Grand Central		450,000		1		85.6		21,413,532		2		81		50.39		42.09
333 West 34th Street		1954/2000	Penn Station		345,400		1		90.2		12,904,176		1		3		40.70		38.62
420 Lexington Ave (Graybar)(5)		1927/1999	Grand Central North		1,188,000		4		90.3		59,331,852		5		218		49.35		40.80
461 Fifth Avenue(5)(6)		1988	Midtown		200,000		1		98.8		15,236,376		1		16		76.96		68.64
485 Lexington Avenue		1956/2006	Grand Central North		921,000		3		90.8		47,281,632		4		21		56.57		44.76
555 West 57th Street(6)		1971	Midtown West		941,000		3		99.2		32,135,868		3		11		32.59		32.06
609 Fifth Avenue		1925/1990	Rockefeller Center		160,000		1		84.7		13,232,748		1		9		97.52		88.68
625 Madison Avenue(5)		1956/2002	Plaza District		563,000		2		94.6		42,182,353		4		24		77.69		69.55
673 First Avenue(5)(6)		1928/1990	Grand Central South		422,000		1		99.7		18,591,432		2		9		41.51		39.14
711 Third Avenue(5)(6)(7)		1955	Grand Central North		524,000		2		94.8		27,602,868		2		18		51.15		43.53
750 Third Avenue		1958/2006	Grand Central North		780,000		2		97.1		39,846,708		3		31		52.00		44.87
810 Seventh Avenue		1970	Times Square		692,000		2		86.4		40,238,592		4		40		59.70		47.21
919 Third Avenue		1970	Grand Central North		1,454,000		5		99.9		87,346,332		4		14		60.13		50.54
1185 Avenue of the Americas(5)		1969	Rockefeller Center		1,062,000		3		99.9		75,492,684		7		19		70.03		62.77
1350 Avenue of the Americas		1966	Rockefeller Center		562,000		2		90.0		32,582,868		3		40		61.84		53.62
1 Madison Avenue		1960/2002	Park Avenue South		1,176,900		4		99.8		67,536,096		6		2		57.10		56.66
331 Madison Avenue		1923	Grand Central		114,900		0		96.9		4,947,864		0		17		44.76		40.90
Subtotal / Weighted Average					14,178,700		45		92.9		734,820,709		60		642
"Non Same Store"
51 East 42nd Street		1913	Grand Central		142,000		0		95.5		6,978,300		1		90		51.75		52.29
110 East 42nd Street		1921	Grand Central		205,000		1		69.9		6,682,056		1		19		46.58		37.44
125 Park Avenue		1923/2006	Grand Central		604,245		2		70.0		24,657,036		2		17		58.89		65.07
180 Maiden Lane		1984	Financial East		1,090,000		3		97.7		52,810,680		2		5		50.31		40.65
521 Fifth Avenue		1929/2000	Grand Central		460,000		1		90.9		23,224,260		2		47		53.56		51.61
1515 Broadway		1972	Times Square		1,750,000		6		100.0		107,373,252		9		13		62.43		53.46
Subtotal / Weighted Average					4,251,245		14		92.5		221,725,584		17		191
Total / Weighted Average Manhattan Consolidated Properties(8)					18,429,945		59		92.8		956,546,293		77		833
UNCONSOLIDATED PROPERTIES
"Same Store"
100 Park Avenue—50%		1950/1980	Grand Central South		834,000		3		95.0		51,129,624		2		35		60.76		52.41
800 Third Avenue—42.95%		1972/2006	Grand Central North		526,000		2		84.3		25,080,396		1		36		53.86		49.87
388 & 390 Greenwich Street—50.6%(12)		1986/1990	Downtown		2,635,000		8		100.0		104,501,052		5		1		39.66		39.66
1745 Broadway—32.3%		2003	Midtown		674,000		2		100.0		34,761,204		1		1		53.93		53.93
Subtotal / Weighted Average					4,669,000		15		97.3		215,472,276		9		73
"Non Same Store"
280 Park Avenue—49.5%		1961	Park Avenue		1,219,158		4		74.5		71,915,628		3		33		83.87		68.26
600 Lexington Avenue—55%		1983/2009	Eastside		303,515		1		72.6		14,216,808		1		23		69.58		62.36
Subtotal / Weighted Average					1,522,673		5		74.1		86,132,436		4		56
Total / Weighted Average Unconsolidated Properties(9)					6,191,673		20		91.6		301,604,712		13		129
Manhattan Grand Total / Weighted Average					24,621,618		78		92.5		1,258,151,005				962
Manhattan Grand Total—SLG share of Annualized Rent											1,031,117,133		90
Manhattan Same Store Occupancy %—Combined					18,847,700		77		94.0

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Suburban Properties	Year Built/ Renovated		SubMarket	Approximate Rentable Square Feet		Percentage of Portfolio Rentable Square Feet (%)		Percent Leased (%)		Annualized Cash Rent ($'s)(1)		Percentage of Portfolio Annualized Cash Rent (%)(2)		Number of Tenants		Annualized Cash Rent per Leased Square Foot ($)(3)		Annualized Net Effective Cash Rent per Leased Square Foot ($)(4)
CONSOLIDATED PROPERTIES
"Same Store" Westchester, NY
1100 King Street		1983-1986	Rye Brook, Westchester		540,000		2		75.4		10,868,568		1		26		28.42		23.05
520 White Plains Road		1979	Tarrytown, Westchester		180,000		1		73.6		3,654,936		0		9		28.34		22.45
115-117 Stevens Avenue		1984	Valhalla, Westchester		178,000		1		85.5		3,186,120		0		13		23.37		14.67
100 Summit Lake Drive		1988	Valhalla, Westchester		250,000		1		61.2		2,808,780		0		8		18.37		20.18
200 Summit Lake Drive		1990	Valhalla, Westchester		245,000		1		87.5		6,348,204		1		7		30.18		27.88
500 Summit Lake Drive		1986	Valhalla, Westchester		228,000		1		78.1		4,105,068		1		7		24.92		21.83
140 Grand Street		1991	White Plains, Westchester		130,100		0		93.6		4,004,304		0		10		36.47		28.41
360 Hamilton Avenue		2000	White Plains, Westchester		384,000		1		94.3		13,043,124		1		16		35.57		29.98
Westchester, NY Subtotal/Weighted Average					2,135,100		8		80.6	$	48,019,104		5		96
"Same Store" Connecticut
Landmark Square		1973-1984	Stamford, Connecticut		826,000		3		82.6		18,359,388		2		99		31.14		27.72
680 Washington Boulevard		1989	Stamford, Connecticut		133,000		0		88.5		4,001,172		0		7		40.83		36.28
750 Washington Boulevard		1989	Stamford, Connecticut		192,000		1		93.6		7,127,976		0		9		40.46		33.98
1055 Washington Boulevard(5)		1987	Stamford, Connecticut		182,000		1		84.5		5,800,368		1		21		35.66		33.56
300 Main Street		2002	Stamford, Connecticut		130,000		0		88.8		1,773,252		0		18		15.83		13.65
1010 Washington Boulevard		1988	Stamford, Connecticut		143,400		0		53.3		2,214,900		0		15		30.95		24.94
500 West Putnam Avenue		1973	Greenwich, Connecticut		121,500		0		51.3		2,678,124		0		9		43.00		43.52
Connecticut Subtotal/Weighted Average					1,727,900		4		80.3		41,955,180		3		178
Total / Weighted Average Consolidated Properties(10)					3,863,000		12		80.5		89,974,284		8		274
UNCONSOLIDATED PROPERTIES
"Same Store"
One Court Square—30%		1987	Long Island City, New York		1,402,000		4		100.0		39,819,192		1		1		28.41		28.41
The Meadows—50%		1981	Rutherford, New Jersey		582,100		2		79.0		11,685,804		1		49		26.66		25.34
16 Court Street—35%		1928	Brooklyn, NY		317,600		1		90.3		10,340,508		0		66		40.23		34.77
Jericho Plaza—20.26%		1980	Jericho, New York		640,000		2		95.2		21,554,064		0		33		37.12		30.58
Total / Weighted Average Unconsolidated Properties(11)					2,941,700		9		93.8		83,399,568		2		149
Suburban Grand Total / Weighted Average					6,804,700		22		86.2		173,373,852				423
Suburban Grand Total—SLG share of Annualized Rent											110,295,692		10
Suburban Same Store Occupancy %—Combined					6,804,700		100		86.2
Portfolio Grand Total					31,426,318		100				1,431,524,857
Portfolio Grand Total—SLG Share of Annualized Rent											1,141,412,826		100

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	Year Built/ Renovated		SubMarket	Approximate Rentable Square Feet		Percentage of Portfolio Rentable Square Feet (%)		Percent Leased (%)		Annualized Cash Rent ($'s)(1)		Percentage of Portfolio Annualized Cash Rent (%)(2)		Number of Tenants		Annualized Cash Rent per Leased Square Foot ($)(3)		Annualized Net Effective Cash Rent per Leased Square Foot ($)(4)
RETAIL
141 Fifth Avenue—50%		1879	Flatiron		13,000		4		100.0		2,605,440		5		2		249.73		237.88
747 Madison Avenue—33.33%		1962	Plaza District		10,000		3		100.0		5,004,000		7		1		501.05		501.05
1604 Broadway—63%		1912/2001	Times Square		29,876		9		23.7		2,001,902		5		2		283.28		188.14
11 West 34th Street—30%		1920/2010	Herald Square/Penn Station		17,150		5		100.0		1,802,500		2		1		161.66		197.63
21-25 West 34th Street—50%		2009	Herald Square/Penn Station		30,100		9		100.0		6,845,232		14		1		340.54		317.57
27-29 West 34th Street—50%		2009	Herald Square/Penn Station		15,600		4		100.0		4,242,720		9		2		271.74		282.88
379 West Broadway—45%		1853/1987	Cast Iron/Soho		62,006		18		100.0		3,512,880		6		5		58.03		54.41
717 Fifth Avenue—32.75%		1958/2000	Midtown/Plaza District		119,550		34		89.4		33,579,792		45		7		302.78		152.01
Williamsburg Terrace(6)		2010	Brooklyn, NY		52,000		15		100.0		1,575,069		6		3		30.27		34.91
Total / Weighted Average Retail Properties					349,282		100		89.9		61,169,535		100		24
DEVELOPMENT
3 Columbus Circle—48.9%		1927/2010	Columbus Circle		741,500		53		16.8		12,399,200		69		26		101.61		113.76
125 Chubb Way		2008	Lyndhurst, NJ		278,000		20		32.1		1,918,123		22		2		21.50		21.00
150 Grand Street		1962/2001	White Plains, NY		85,000		6		26.0		527,160		6		14		21.03		17.05
1552-1560 Broadway—50%		1926	Times Square		35,897		3		59.7		—		—		2		—		—
7 Renaissance Square—50%		2008	White Plains, NY		65,641		5		—		—		—		—		—		—
180-182 Broadway—25.5%		1902/2011	Cast Iron/Soho		153,000		11		—		—		—		—		—		—
7 Landmark Square		2000	Stamford, Connecticut		36,800		3		10.8		287,664		3		1		72.28		72.28
Total / Weighted Average Development Properties					1,395,838		100		18.7		15,132,147		100		45
LAND
2 Herald Square			Herald Square/Penn Station		354,400		30		100.0		9,000,000		39				25.40		25.40
885 Third Avenue			Midtown/Plaza District		607,000		52		100.0		11,095,000		48				18.28		18.28
292 Madison Avenue			Grand Central South		203,800		17		100.0		3,150,000		14				15.46		15.46
Total / Weighted Average Land					1,165,200		100		100.0		23,245,000		100
Portfolio Grand Total					31,426,318		100		91.2		1,431,524,857				1,385
Portfolio Grand Total—SLG Share of Annualized Rent											1,141,412,826		100

⁽¹⁾

Annualized Cash Rent represents the monthly contractual rent under existing leases as of December 31, 2011 multiplied by 12. This amount reflects total rent before any rent abatements and includes expense reimbursements, which may be estimated as of such date. Total rent abatements for leases in effect as of December 31, 2011 for the 12 months ending December 31, 2012 are reductions of approximately $8.7 million for our consolidated properties and approximately $14.4 million for our unconsolidated properties.

⁽²⁾

Includes our share of unconsolidated joint venture annualized cash rent calculated on a consistent basis.

⁽³⁾

Annualized Rent Per Leased Square Foot represents Annualized Rent, as described in footnote (1) above, presented on a per leased square foot basis.

⁽⁴⁾

Annual Net Effective Cash Rent Per Leased Square Foot represents (a) for leases in effect at the time an interest in the relevant property was first acquired by us, the remaining lease payments under the lease from the acquisition date divided by the number of months remaining under the lease multiplied by 12 and (b) for leases entered into after an interest in the relevant property was first acquired by us, all lease payments under the lease divided by the number of months in the lease multiplied by 12, minus, in the case of both (a) and (b), tenant improvement costs and leasing commissions, if any, paid or payable by us and presented on a per leased square foot basis. Annual Net Effective Cash Rent per Leased Square Foot includes future contractual increases in rental payments and therefore, in certain cases, may exceed Annualized Cash Rent per Leased Square Foot.

⁽⁵⁾

We hold a leasehold interest in this property.

⁽⁶⁾

Includes a parking garage.

⁽⁷⁾

We hold a leasehold mortgage interest, a net sub-leasehold interest and a co-tenancy interest in this property.

⁽⁸⁾

Includes approximately 16.9 million square feet of rentable office space, 1.2 million square feet of rentable retail space and 0.4 million square feet of garage space.

⁽⁹⁾

Includes approximately 6.1 million square feet of rentable office space, 0.1 million square feet of rentable retail space and no garage space.

⁽¹⁰⁾

Includes approximately 3.6 million square feet of rentable office space and 0.2 million square feet of rentable retail space.

⁽¹¹⁾

Includes approximately 2.9 million square feet of rentable office space.

⁽¹²⁾

The rent per square foot is presented on a triple-net basis.

28

Historical Occupancy

        We have historically achieved consistently higher occupancy rates in our Manhattan portfolio in comparison to the overall midtown markets, as shown over the last five years in the following table:

	Percent of Manhattan Portfolio Leased(1)			Occupancy Rate of Class A Office Properties in the midtown Markets(2)(3)			Occupancy Rate of Class B Office Properties in the midtown Markets(2)(3)
December 31, 2011		92.5	%		89.7	%		91.3	%
December 31, 2010		92.9	%		88.6	%		90.9	%
December 31, 2009		95.0	%		86.8	%		90.3	%
December 31, 2008		96.7	%		90.8	%		92.1	%
December 31, 2007		96.6	%		94.1	%		93.5	%

⁽¹⁾

Includes space for leases that were executed as of the relevant date in our wholly-owned and joint venture properties in Manhattan owned by us as of that date.

⁽²⁾

Includes vacant space available for direct lease and sublease. Source: Cushman & Wakefield.

⁽³⁾

The term "Class B" is generally used in the Manhattan office market to describe office properties that are more than 25 years old but that are in good physical condition, enjoy widespread acceptance by high-quality tenants and are situated in desirable locations in Manhattan. Class B office properties can be distinguished from Class A properties in that Class A properties are generally newer properties with higher finishes and frequently obtain the highest rental rates within their markets.

        We have historically achieved consistently higher occupancy rates in our Westchester County and Connecticut portfolios in comparison to the overall Westchester County and Stamford, Connecticut, CBD markets, as shown over the last five years in the following table:

	Percent of Westchester Portfolio Leased(1)			Occupancy Rate of Class A Office Properties in the Westchester Market(2)			Percent of Connecticut Portfolio Leased(1)			Occupancy Rate of Class A Office Properties in the Stamford CBD Market(2)
December 31, 2011		80.6	%		80.1	%		80.3	%		73.8	%
December 31, 2010		80.0	%		80.3	%		84.3	%		77.6	%
December 31, 2009		86.5	%		80.3	%		82.7	%		77.5	%
December 31, 2008		88.9	%		81.7	%		84.9	%		84.5	%
December 31, 2007		90.2	%		83.4	%		88.5	%		86.6	%

⁽¹⁾

Includes space for leases that were executed as of the relevant date in our wholly-owned and joint venture Suburban properties owned by us as of that date.

⁽²⁾

Includes vacant space available for direct lease and sublease. Source: Cushman & Wakefield.

Lease Expirations

        Leases in our Manhattan portfolio, as at many other Manhattan office properties, typically have an initial term of seven to fifteen years, compared to typical lease terms of five to ten years in other large U.S. office markets. For the five years ending December 31, 2016, the average annual rollover at our Manhattan consolidated and unconsolidated office properties is expected to be approximately 1.2 million square feet and 0.4 million square feet, respectively, representing an average annual expiration rate of 8.0% and 3.7%, respectively, per year (assuming no tenants exercise renewal or cancellation options and there are no tenant bankruptcies or other tenant defaults).

        The following tables set forth a schedule of the annual lease expirations at our Manhattan consolidated and unconsolidated office properties, respectively, with respect to leases in place as of December 31, 2011 for each of

29

the next ten years and thereafter (assuming that no tenants exercise renewal or cancellation options and that there are no tenant bankruptcies or other tenant defaults):

Manhattan Consolidated Office Properties Year of Lease Expiration	Number of Expiring Leases		Square Footage of Expiring Leases		Percentage of Total Leased Square Feet (%)			Annualized Cash Rent of Expiring Leases(1)		Annualized Cash Rent Per Leased Square Foot of Expiring Leases(2)
2012(3)		141		725,151		4.13	%	$	39,192,552	$	54.05
2013		139		1,317,740		7.52			72,295,932		54.86
2014		116		1,754,020		10.01			96,140,449		54.81
2015		109		2,035,591		11.62			116,424,113		57.19
2016		82		1,173,761		6.70			65,446,008		55.76
2017		69		1,714,108		9.78			92,750,703		54.11
2018		35		598,396		3.41			45,272,673		75.66
2019		21		650,053		3.71			37,226,640		57.27
2020		41		2,305,420		13.16			130,997,232		56.82
2021 & thereafter		106		5,250,558		29.96			260,799,991		49.67
Total/weighted average		859		17,524,798		100.00	%	$	956,546,293	$	54.58

⁽¹⁾

Annualized Cash Rent of Expiring Leases represents the monthly contractual rent under existing leases as of December 31, 2011 multiplied by 12. This amount reflects total rent before any rent abatements and includes expense reimbursements, which may be estimated as of such date. Total rent abatements for leases in effect as of December 31, 2011 for the 12 months ending December 31, 2012, are reductions of approximately $6.1 million for the properties.

⁽²⁾

Annualized Cash Rent Per Leased Square Foot of Expiring Leases represents Annualized Cash Rent of Expiring Leases, as described in footnote (1) above, presented on a per leased square foot basis.

⁽³⁾

Includes 99,177 square feet occupied by month-to-month holdover tenants whose leases expired prior to December 31, 2011.

Manhattan Unconsolidated Office Properties Year of Lease Expiration	Number of Expiring Leases			Square Footage of Expiring Leases		Percentage of Total Leased Square Feet (%)			Annualized Cash Rent of Expiring Leases(1)		Annualized Cash Rent Per Leased Square Foot of Expiring Leases(2)
2012(3)		20			396,873		7.03	%	$	28,229,555	$	71.13
2013		6			56,611		1.00			3,509,544		61.99
2014		15			288,372		5.11			20,647,080		71.60
2015		16			163,115		2.89			8,746,488		53.62
2016		13			149,576		2.65			9,069,720		60.64
2017		12			184,154		3.26			13,932,660		75.66
2018		20			873,771		15.47			56,815,416		65.02
2019		8			229,599		4.06			17,057,400		74.29
2020		6			166,996		2.96			8,630,172		51.68
2021 & thereafter		17			504,569		8.93			30,465,625		60.38
Sub-Total/weighted average		133			3,013,636		53.36			197,103,660	$	65.40
		2	(4)		2,634,670		46.64			104,501,052
Total		135			5,648,306		100.00	%	$	301,604,712

⁽¹⁾

Annualized Cash Rent of Expiring Leases represents the monthly contractual rent under existing leases as of December 31, 2011 multiplied by 12. This amount reflects total rent before any rent abatements and includes expense reimbursements, which may be estimated as of such date. Total rent abatements for leases in effect as of December 31, 2011 for the 12 months ending December 31, 2012 are reductions of approximately $11.6 million for the joint venture properties.

30

⁽²⁾

Annualized Cash Rent Per Leased Square Foot of Expiring Leases represents Annualized Cash Rent of Expiring Leases, as described in footnote (1) above, presented on a per leased square foot basis.

⁽³⁾

Includes 24,280 square feet occupied by month-to-month holdover tenants whose leases expired prior to December 31, 2011.

⁽⁴⁾

Represents Citigroup's 13-year net lease at 388-390 Greenwich Street. The current net rent is $39.66 per square foot with annual CPI escalation.

        Leases in our Suburban portfolio, as at many other suburban office properties, typically have an initial term of five to ten years. For the five years ending December 31, 2016, the average annual rollover at our Suburban consolidated and unconsolidated office properties is expected to be approximately 0.4 million square feet and 0.2 million square feet, respectively, representing an average annual expiration rate of 13.0% and 7.0% respectively, per year (assuming no tenants exercise renewal or cancellation options and there are no tenant bankruptcies or other tenant defaults).

        The following tables set forth a schedule of the annual lease expirations at our Suburban consolidated and unconsolidated office properties, respectively, with respect to leases in place as of December 31, 2011 for each of the next ten years and thereafter (assuming that no tenants exercise renewal or cancellation options and that there are no tenant bankruptcies or other tenant defaults):

Suburban Consolidated Office Properties Year of Lease Expiration	Number of Expiring Leases		Square Footage of Expiring Leases		Percentage of Total Leased Square Feet (%)			Annualized Cash Rent of Expiring Leases(1)		Annualized Cash Rent Per Leased Square Foot of Expiring Leases(2)
2012(3)		62		338,114		11.56	%	$	9,071,472	$	26.83
2013		36		315,186		10.78			10,553,724		33.48
2014		34		282,851		9.67			9,166,980		32.41
2015		33		286,416		9.79			9,461,916		33.04
2016		47		678,059		23.19			20,865,204		30.77
2017		13		90,270		3.09			2,809,716		31.13
2018		16		161,910		5.54			5,427,744		33.52
2019		11		251,410		8.60			7,579,200		30.15
2020		11		234,319		8.01			6,433,008		27.45
2021 & thereafter		19		285,816		9.77			8,605,320		30.11
Total/weighted average		282		2,924,351		100.00	%	$	89,974,284	$	30.77

⁽¹⁾

Annualized Cash Rent of Expiring Leases represents the monthly contractual rent under existing leases as of December 31, 2011 multiplied by 12. This amount reflects total rent before any rent abatements and includes expense reimbursements, which may be estimated as of such date. Total rent abatements for leases in effect as of December 31, 2011 for the 12 months ending December 31, 2012, are reductions of approximately $2.6 million for the properties.

⁽²⁾

Annualized Cash Rent Per Leased Square Foot of Expiring Leases represents Annualized Cash Rent of Expiring Leases, as described in footnote (1) above, presented on a per leased square foot basis.

⁽³⁾

Includes 118,194 square feet occupied by month-to-month holdover tenants whose leases expired prior to December 31, 2011.

31

Suburban Unconsolidated Office Properties Year of Lease Expiration	Number of Expiring Leases		Square Footage of Expiring Leases		Percentage of Total Leased Square Feet (%)			Annualized Cash Rent of Expiring Leases(1)		Annualized Cash Rent Per Leased Square Foot of Expiring Leases(2)
2012(3)		32		286,816		10.71	%	$	10,312,397	$	35.95
2013		23		89,924		3.36			2,971,432		33.04
2014		30		302,318		11.29			10,759,512		35.59
2015		20		140,862		5.26			4,397,064		31.22
2016		10		112,493		4.20			3,512,909		31.23
2017		7		63,196		2.36			2,423,364		38.35
2018		4		61,523		2.30			2,272,032		36.93
2019		6		37,252		1.39			1,391,112		37.34
2020		8		1,436,236		53.64			40,804,884		28.41
2021 & thereafter		9		146,968		5.49			4,554,862		30.99
Total/weighted average		149		2,677,588		100.00	%	$	83,399,568	$	31.15

⁽¹⁾

Annualized Cash Rent of Expiring Leases represents the monthly contractual rent under existing leases as of December 31, 2011 multiplied by 12. This amount reflects total rent before any rent abatements and includes expense reimbursements, which may be estimated as of such date. Total rent abatements for leases in effect as of December 31, 2011 for the 12 months ending December 31, 2012, are reductions of approximately $2.8 million for the joint venture properties.

⁽²⁾

Annualized Cash Rent Per Leased Square Foot of Expiring Leases represents Annualized Cash Rent of Expiring Leases, as described in footnote (1) above, presented on a per leased square foot basis.

⁽³⁾

Includes 26,540 square feet occupied by month-to-month holdover tenants whose leases expired prior to December 31, 2011.

Tenant Diversification

        At December 31, 2011, our portfolio was leased to approximately 1,385 tenants, which are engaged in a variety of businesses, including professional services, financial services, media, apparel, business services and government/non-profit. The following table sets forth information regarding the leases with respect to the 30

32

largest tenants in our portfolio, based on the amount of square footage leased by our tenants as of December 31, 2011:

Tenant(1)	Properties	Remaining Lease Term in Months(2)		Total Leased Square Feet		Percentage of Aggregate Portfolio Leased Square Feet (%)			Percentage of Aggregate Portfolio Annualized Cash Rent (%)
Citigroup, N.A.	388 & 390 Greenwich Street, 485 Lexington Avenue, 750 Third Avenue, 800 Third Avenue, 750 Washington Blvd & Court Square		108		4,425,032		14.1	%		7.2	%
Viacom International, Inc.	1515 Broadway		41		1,271,881		4.0			6.9
Credit Suisse Securities (USA), Inc.	1 Madison Avenue & 280 Park Avenue		108		1,250,893		4.0			6.4
AIG Employee Services, Inc.	180 Maiden Lane		28		803,222		2.6			1.8
Random House, Inc.	1745 Broadway		78		644,598		2.1			1.0
Debevoise & Plimpton, LLP	919 Third Avenue		120		619,353		2.0			1.8
Omnicom Group, Inc.	220 East 42nd Street & 420 Lexington Avenue		64		494,476		1.6			1.8
The City of New York	16 Court Street & 100 Church Street		22		345,903		1.1			1.2
Advance Magazine Group, Fairchild Publications	750 Third Avenue & 485 Lexington Avenue		110		339,195		1.1			1.3
Ralph Lauren Corporation	625 Madison Avenue & 379 West Broadway		96		295,965		0.9			1.6
C.B.S. Broadcasting, Inc.	555 West 57th Street		144		282,385		0.9			0.9
Schulte, Roth & Zabel LLP	919 Third Avenue		114		263,186		0.8			0.7
The Metropolitan Transportation Authority	333 West 34th Street & 420 Lexington Avenue		109		242,663		0.8			0.8
New York Presbyterian Hospital	673 First Avenue		116		232,772		0.7			0.8
BMW of Manhattan	555 West 57th Street		127		227,782		0.7			0.5
Stroock, Stroock & Lavan LLP	180 Maiden Lane		137		223,434		0.7			0.4
The Travelers Indemnity Company	485 Lexington Avenue & 2 Jericho Plaza		56		213,456		0.7			0.8
The City University of New York-CUNY	555 West 57th Street & 16 Court Street		228		207,136		0.7			0.6
Verizon	120 West 45th Street, 1100 King Street Bldg 1, 1 Landmark Square, 2 Landmark Square & 500 Summit Lake Drive		96		204,076		0.6			1.1
Amerada Hess Corp.	1185 Avenue of the Americas		192		181,569		0.6			1.0
HF Management Services LLC	100 Church Street		243		172,577		0.5			0.4
Fuji Color Processing Inc.	200 Summit Lake Drive		15		165,880		0.5			0.5
King & Spalding	1185 Avenue of the Americas		166		162,243		0.5			0.9
United Nations	220 East 42nd Street		123		162,146		0.5			0.6
News America Incorporated	1185 Avenue of the Americas		107		161,722		0.5			1.2
National Football League	280 Park Avenue		2		159,368		0.5			0.5
National Hockey League	1185 Avenue of the Americas		131		148,217		0.5			1.0
New York Hospitals Center/Mount Sinai	625 Madison Avenue & 673 First Avenue		178		146,917		0.5			0.6
D.E. Shaw and Company L.P.	120 West 45th Street		111		145,964		0.5			0.8
Banque National De Paris	919 Third Avenue		55		145,834		0.5			0.4
Total Weighted Average(3)					14,339,845		45.7	%		45.5	%

⁽¹⁾

This list is not intended to be representative of our tenants as a whole.

⁽²⁾

Lease term from December 31, 2011 until the date of the last expiring lease for tenants with multiple leases.

⁽³⁾

Weighted average calculation based on total rentable square footage leased by each tenant.

Environmental Matters

        We engaged independent environmental consulting firms to perform Phase I environmental site assessments on our portfolio, in order to assess existing environmental conditions. All of the Phase I assessments met the ASTM Standard. Under the ASTM Standard, a Phase I environmental site assessment consists of a site visit, an

33

historical record review, a review of regulatory agency data bases and records, and interviews with on-site personnel, with the purpose of identifying potential environmental concerns associated with real estate. These environmental site assessments did not reveal any known environmental liability that we believe will have a material adverse effect on our results of operations or financial condition.

ITEM 3.    LEGAL PROCEEDINGS

        As of December 31, 2011, we were not involved in any material litigation nor, to management's knowledge, was any material litigation threatened against us or our portfolio other than routine litigation arising in the ordinary course of business or litigation that is adequately covered by insurance.

ITEM 4.    MINING SAFETY DISCLOSURES

        Not Applicable.

34

PART II

ITEM 5.    MARKET FOR REGISTRANT'S COMMON EQUITY AND RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES

        Our common trades on the New York Stock Exchange, or the NYSE, under the symbol "SLG." On February 15, 2012, the reported closing sale price per share of common stock on the NYSE was $75.52 and there were approximately 444 holders of record of our common stock. The table below sets forth the quarterly high and low closing sales prices of the common stock on the NYSE and the distributions declared by us with respect to the periods indicated.

	2011						2010
Quarter Ended	High		Low		Dividends		High		Low		Dividends
March 31	$	75.73	$	67.05	$	0.10	$	57.60	$	44.18	$	0.10
June 30	$	90.01	$	74.72	$	0.10	$	67.69	$	55.04	$	0.10
September 30	$	87.54	$	58.15	$	0.10	$	66.61	$	50.41	$	0.10
December 31	$	71.33	$	55.14	$	0.25	$	70.27	$	61.50	$	0.10

        If dividends are declared in a quarter, those dividends will be paid during the subsequent quarter. We expect to continue our policy of distributing our taxable income through regular cash dividends on a quarterly basis, although there is no assurance as to future dividends because they depend on future earnings, capital requirements and financial condition. See Item 7 "Management's Discussion and Analysis of Financial Condition and Results of Operations—Dividends" for additional information regarding our dividends.

UNITS

        At December 31, 2011, there were 910,546 units of limited partnership interest of the operating partnership outstanding and held by persons other than the Company, which received distributions per unit in the same manner as dividends per share were distributed to common stockholders.

ISSUER PURCHASES OF EQUITY SECURITIES

        None.

SALE OF UNREGISTERED AND REGISTERED SECURITIES; USE OF PROCEEDS FROM REGISTERED SECURITIES

        During the years ended December 31, 2011, 2010 and 2009, we issued 12,423, 278,865 and 378,344 shares of common stock, respectively, to holders of units of limited partnership in the operating partnership upon the redemption of such units pursuant to the partnership agreement of the operating partnership. The issuance of such shares was exempt from registration under the Securities Act, pursuant to the exemption contemplated by Section 4(2) thereof for transactions not involving a public offering. The units were converted into an equal number of shares of common stock.

35

        The following table summarizes information, as of December 31, 2011, relating to our equity compensation plans pursuant to which shares of our common stock or other equity securities may be granted from time to time.

Plan category	Number of securities to be issued upon exercise of outstanding options, warrants and rights		Weighted average exercise price of outstanding options, warrants and rights		Number of securities remaining available for future issuance under equity compensation plans (excluding securities reflected in column (a))
	(a)		(b)		(c)
Equity compensation plans approved by security holders(1)		1,277,200	$	63.37		2,333,000	(2)
Equity compensation plans not approved by security holders		—		—		—
Total		1,277,200	$	63.37		2,333,000

(1)

Includes information related to our 2005 Amended and Restated Stock Option and Incentive Plan and Amended 1997 Stock Option and Incentive Plan, as amended.

(2)

Balance is after reserving for shares to be issued under our 2005 Long-Term Outperformance Compensation Program and our 2010 Notional Units Long-Term Compensation Plan and our Deferred Stock Compensation Plan for Directors.

36

ITEM 6.    SELECTED FINANCIAL DATA

        The following table sets forth our selected financial data and should be read in conjunction with our Financial Statements and notes thereto included in Item 8, "Financial Statements and Supplementary Data" and Item 7, "Management's Discussion and Analysis of Financial Condition and Results of Operations" in this Form 10-K.

        In connection with this Annual Report on Form 10-K, we are restating our historical audited consolidated financial statements as a result of classifying certain properties as held for sale. As a result, we have reported revenue and expenses from these properties as discontinued operations for each period presented in our Annual Report on Form 10-K. These reclassifications had no effect on our reported net income or funds from operations.

        We are also providing updated summary selected financial information, which is included below, reflecting the prior period reclassification as discontinued operations of the property sold during 2011 and those designated as held for sale as of December 31, 2011.

	Year Ended December 31,
Operating Data	2011			2010			2009			2008			2007
(In thousands, except per share data)
Total revenue	$	1,263,428		$	1,084,386		$	978,361		$	1,047,819		$	946,016
Operating expenses		263,709			224,693			209,272			219,427			199,892
Real estate taxes		174,454			145,830			136,636			121,857			116,729
Ground rent		32,919			31,191			31,826			31,494			32,389
Interest expense, net of interest income		285,917			230,648			232,655			289,061			256,941
Amortization of deferred finance costs		14,118			9,046			7,065			6,139			15,893
Depreciation and amortization		277,345			225,193			220,396			210,813			169,066
Loan loss and other investment reserves, net of recoveries		6,722			17,751			150,510			115,882			—
Transaction related costs		5,561			11,849			—			—			—
Marketing, general and administration		80,103			75,946			73,992			104,583			93,045
Total expenses		1,140,848			972,147			1,062,352			1,099,256			883,955
Equity in net income from unconsolidated joint ventures		1,583			39,607			62,878			59,961			46,765
Equity in net gain on sale of interest in unconsolidated joint venture/ real estate		2,918			128,921			6,691			103,056			31,509
Purchase price fair value adjustment		498,195			—			—			—			—
Gain (loss) on investment in marketable securities		4,866			490			(396	)		(147,489	)		—
Depreciable real estate reserves		(5,789	)		(2,750	)		—			—			—
Gain(loss) on early extinguishment of debt		904			(1,900	)		86,006			77,465			—
Income from continuing operations		625,257			276,607			71,188			41,556			140,335
Discontinued operations		51,865			42,549			477			362,492			542,362
Net income		677,122			319,156			71,665			404,048			682,697
Net income attributable to noncontrolling interest in operating partnership		(14,629	)		(4,574	)		(1,221	)		(14,561	)		(26,084	)
Net income attributable to noncontrolling interests in other partnerships		(15,083	)		(14,007	)		(12,900	)		(8,677	)		(10,383	)
Net income attributable to SL Green		647,410			300,575			57,544			380,810			646,230
Preferred dividends		(30,178	)		(29,749	)		(19,875	)		(19,875	)		(19,875	)
Net income attributable to SL Green common stockholders	$	617,232		$	270,826		$	37,669		$	360,935		$	626,355
Net income per common share—Basic	$	7.37		$	3.47		$	0.54		$	6.22		$	10.66
Net income per common share—Diluted	$	7.33		$	3.45		$	0.54		$	6.20		$	10.54
Cash dividends declared per common share	$	0.55		$	0.40		$	0.6750		$	2.7375		$	2.89
Basic weighted average common shares outstanding		83,762			78,101			69,735			57,996			58,742
Diluted weighted average common shares and common share equivalents outstanding		86,244			79,761			72,044			60,598			61,885

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	As of December 31,
Balance Sheet Data (In thousands)	2011		2010		2009		2008		2007
Commercial real estate, before accumulated depreciation	$	11,147,151	$	8,890,064	$	8,257,100	$	8,201,789	$	8,622,496
Total assets		13,483,852		11,300,294		10,487,577		10,984,353		11,430,078
Mortgages and other loans payable, revolving credit facility, senior unsecured notes and trust preferred securities		6,035,397		5,251,013		4,892,688		5,581,559		5,658,149
Noncontrolling interests in operating partnership		195,030		84,338		84,618		87,330		81,615
Equity		6,453,309		5,397,544		4,913,129		4,481,960		4,524,600

	Year Ended December 31,
Other Data (In thousands)	2011			2010			2009			2008			2007
Funds from operations available to all stockholders(1)	$	413,813		$	389,161		$	318,817		$	344,856		$	343,186
Net cash provided by operating activities		312,860			321,058			275,211			296,011			406,705
Net cash (used in) provided by investment activities		(739,597	)		18,815			(345,379	)		396,219			(2,334,337	)
Net cash provided by (used in) financing activities		232,099			(350,758	)		(313,006	)		(11,305	)		1,856,418

(1)

Funds From Operations, or FFO, is a widely recognized measure of REIT performance. We compute FFO in accordance with standards established by the National Association of Real Estate Investment Trusts, or NAREIT, which may not be comparable to FFO reported by other REITs that do not compute FFO in accordance with the NAREIT definition, or that interpret the NAREIT definition differently than we do. The revised White Paper on FFO approved by the Board of Governors of NAREIT in April 2002, and as subsequently amended, defines FFO as net income (loss) (computed in accordance with generally accepted accounting principles, or GAAP), excluding gains (or losses) from debt restructurings, sales of properties and real estate impairment charges, plus real estate related depreciation and amortization and after adjustments for unconsolidated partnerships and joint ventures. We present FFO because we consider it an important supplemental measure of our operating performance and believe that it is frequently used by securities analysts, investors and other interested parties in the evaluation of REITS, particularly those that own and operate commercial office properties. We also use FFO as one of several criteria to determine performance-based bonuses for members of our senior management. FFO is intended to exclude GAAP historical cost depreciation and amortization of real estate and related assets, which assumes that the value of real estate assets diminishes ratably over time. Historically, however, real estate values have risen or fallen with market conditions. Because FFO excludes depreciation and amortization unique to real estate, gains and losses from property dispositions and extraordinary items, it provides a performance measure that, when compared year over year, reflects the impact to operations from trends in occupancy rates, rental rates, operating costs, interest costs, providing perspective not immediately apparent from net income. FFO does not represent cash generated from operating activities in accordance with GAAP and should not be considered as an alternative to net income (determined in accordance with GAAP), as an indication of our financial performance or to cash flow from operating activities (determined in accordance with GAAP) as a measure of our liquidity, nor is it indicative of funds available to fund our cash needs, including our ability to make cash distributions. Years prior to 2011 have been adjusted to reflect FFO under the 2011 amended definition.

A reconciliation of FFO to net income computed in accordance with GAAP is provided under the heading of "Management's Discussion and Analysis of Financial Condition and Results of Operations—Funds From Operations."

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ITEM 7.   MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Overview

        SL Green Realty Corp., or the Company, a Maryland corporation, and SL Green Operating Partnership, L.P., or the Operating Partnership, a Delaware limited partnership, were formed in June 1997 for the purpose of combining the commercial real estate business of S.L. Green Properties, Inc. and its affiliated partnerships and entities. We are a self-managed real estate investment trust, or REIT, with in-house capabilities in property management, acquisitions, financing, development, construction and leasing. Unless the context requires otherwise, all references to "we," "our" and "us" means the Company and all entities owned or controlled by the Company, including the Operating Partnership.

        The following discussion related to our consolidated financial statements should be read in conjunction with the financial statements appearing in Item 8 of this Annual Report on Form 10-K.

        Reckson Associates Realty Corp., or Reckson, and Reckson Operating Partnership, L.P. or ROP, are subsidiaries of our operating partnership.

        The New York City commercial real estate market strengthened in 2011, and SL Green took advantage of the strengthening market in improving occupancies and deploying capital in the borough of Manhattan to strategically position the Company for future growth as market conditions improve.

Leasing and Operating

        Improvements in leasing conditions, which began during 2010, continued into 2011. Total 2011 Manhattan new leasing activity was 30.1 million square feet, the largest amount of new leasing in any year since 2000. Net absorption exceeded 5.2 million square feet during the year, of which 3.2 million square feet was absorbed in mid-town Manhattan, the location of 53% of our office properties (by square footage). The Midtown submarket absorption resulted in decreases in overall office vacancy from 10.6% at December 31, 2010 to 9.6% at December 31, 2011 and the portion of available space comprised of sublease space declined to 1.6% of total available inventory. In addition, no new office space was added to the Midtown office inventory, with approximately 0.8 million square feet (0.2% of the total 392.9 million square foot Manhattan office inventory) currently under construction and scheduled to come online by 2013.

        Net absorption that reduced vacancy, and lack of new supply created conditions in which rents increased during the year. Asking rents for direct space in midtown increased during 2011 by 3.7% to $66.75 per square foot. By the end of 2011, asking rents had increased by 9.5% since the recessionary trough in rents in early 2010. Over the same period, net effective rents (which take into consideration leasing concessions and commissions), increased by 21.3%

        SL Green has historically outperformed the Manhattan office market, and it did so in 2011. Our office property occupancy on stabilized same-store assets increased to 95.4% from 94.6% in the earlier year (excluding 100 Church which is in lease-up). The Company's mark-to-market on leases that replaced previously occupied space was 7.3% for 2011. Our leasing activity during 2011 was representative of a diverse array of industries, with a broad cross section of leasing as evidenced by our largest leases in 2011 that included professional services, health care, media and advertising, and government.

Acquisition and Disposition Activity

        In anticipation of the improving market, and because we were able to source opportunities with value enhancement components, SL Green acquired equity interests in 9 buildings during 2011, with total investments of $3.9 billion. Certain of the investments provide upside through repositioning and leasing including 3 Columbus Circle, that was purchased with 20.1 percent occupancy in January 2011 and that was leased to 61% through January 2012, and 280 Park Avenue, which when repositioned will be among the highest quality office buildings in

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Manhattan. In addition, major 2011 transactions included purchasing our partner's interests in the high quality 521 Fifth Avenue and 1515 Broadway properties, and a portfolio of prime retail properties that included three multifamily residential assets which closed in 2012.

        We also took advantage of the improving market conditions and interest by institutions and individuals seeking ownership interests in properties to sell assets, disposing of properties with more limited growth opportunities, and raising efficiently priced capital for reinvestment. During the year, we sold 28 West 44^th Street, and entered into contracts to sell One Court Square, 141 Fifth Avenue and our fee interest in 292 Madison Avenue.

Debt and Preferred Equity

        Beginning in 2010, we saw the increase in opportunities to acquire existing debt and preferred equity positions in high quality Manhattan office properties at discounts that enabled us to generate high risk adjusted yields, and offer off-market access to property acquisitions. As the year progressed, and the availability of debt and preferred equity in high quality properties that could be purchased at discounts waned, we began to see opportunities to originate financings, typically in the form of preferred equity and mezzanine debt, for owners or acquirers seeking higher leverage than has been available from traditional lending sources that continue to be constrained, and that provide only modest amounts of leverage. The typical investments made by us during the last half of 2011 were to reputable owners or acquirers, and at leverage levels which are senior to sizable equity investments by the borrowers. During 2011, our preferred equity and debt activities included purchases of $160.3 million, originations of $449.4 million, redemptions of $287.2 million and conversions of $302.2 million into property ownership. Property equity ownership resulting from this lending program during 2011 included 280 Park Avenue and 110 East 42^nd Street.

Outlook

        Several factors introduced into the market during the second half of 2011 have modestly reduced expectations of the recovery in jobs and in demand for office space in 2012. Those factors include weaker financial results from large New York City based financial institutions as driven by exogenous factors such as the European credit crisis. Despite these factors, we continue to see a solid leasing market and due to the more limited supply of space and lack of new supply, the potential for improving leasing fundamentals as we progress through the year.

        Our significant activities for 2011 included:

•

Acquired or consolidated in joint venture interests on five properties for aggregate gross purchase prices of $2.0 billion encompassing 3.6 million square feet.

•

Invested in four properties through joint ventures for aggregate gross purchase prices of $1.8 billion and encompassing 2.0 million square feet.

•

Closed on a $1.5 billion 4-year revolving credit facility.

•

Sold 6.7 million shares of common stock through our "at-the-market" equity offering programs raising net proceeds of $517.1 million were used to repay certain of our existing indebtedness, make investments in additional properties and debt and preferred equity investments, and for general corporate purposes.

•

Issued $250.0 million principal amount of 5.00% senior unsecured notes, due 2018, at par. The net proceeds from the offering (approximately $246.5 million) were used to repay certain of our existing indebtedness, make investments in additional properties, and for general corporate purposes.

•

Closed on 15 mortgages and loans payable totaling approximately $3.3 billion.

•

Signed 205 office leases totaling 2.3 million square feet in Manhattan during 2011.

•

Signed 109 office leases totaling 0.6 million square feet in the Suburbs during 2011.

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        As of December 31, 2011, we owned the following interests in commercial office properties in the New York Metropolitan area, primarily in midtown Manhattan. Our investments in the New York Metropolitan area also include investments in Brooklyn, Queens, Long Island, Westchester County, Connecticut and New Jersey, which are collectively known as the Suburban assets:

Location	Ownership	Number of Properties		Square Feet		Weighted Average Occupancy(1)
Manhattan	Consolidated properties		26		18,429,945		92.8	%
	Unconsolidated properties		7		6,191,673		91.6	%
Suburban	Consolidated properties		25		3,863,000		80.5	%
	Unconsolidated properties		6		2,941,700		93.8	%
			64		31,426,318		91.2	%

⁽¹⁾

The weighted average occupancy represents the total leased square feet divided by total available rentable square feet.

        We also owned investments in nine stand-alone retail properties encompassing approximately 349,282 square feet, seven development properties encompassing approximately 1,395,838 square feet and three land interests as of December 31, 2011. In addition, we manage three office properties owned by third parties and affiliated companies encompassing approximately 0.9 million rentable square feet.

Critical Accounting Policies

        Our discussion and analysis of financial condition and results of operations is based on our consolidated financial statements, which have been prepared in accordance with accounting principles generally accepted in the United States. The preparation of these financial statements requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, and contingencies as of the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. We evaluate our assumptions and estimates on an ongoing basis. We base our estimates on historical experience and on various other assumptions that we believe to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions or conditions. We believe the following critical accounting policies affect our more significant judgments and estimates used in the preparation of our consolidated financial statements.

Investment in Commercial Real Estate Properties

        On a periodic basis, we assess whether there are any indicators that the value of our real estate properties may be impaired or that its carrying value may not be recoverable. A property's value is considered impaired if management's estimate of the aggregate future cash flows (undiscounted and without interest charges for consolidated properties) to be generated by the property are less than the carrying value of the property. To the extent impairment has occurred, the loss will be measured as the excess of the carrying amount of the property over the calculated fair value of the property. In addition, we assess our investments in unconsolidated joint ventures for recoverability, and if it is determined that a loss in value of the investment is other than temporary, we write down the investment to its fair value. We evaluate our equity investments for impairment based on the joint venture's projected discounted cash flows. During 2011, we recorded a $5.8 million impairment charge in connection with the expected sale of one of our equity investments. During 2010, we recorded a $2.8 million impairment charge on one of our equity investments. These charges are included in depreciable real estate reserves. We do not believe that the value of any of our consolidated properties was impaired at December 31, 2011 and 2010, respectively.

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        A variety of costs are incurred in the development and leasing of our properties. After determination is made to capitalize a cost, it is allocated to the specific component of a project that is benefited. Determination of when a development project is substantially complete and capitalization must cease involves a degree of judgment. The costs of land and building under development include specifically identifiable costs. The capitalized costs include pre-construction costs essential to the development of the property, development costs, construction costs, interest costs, real estate taxes, salaries and related costs and other costs incurred during the period of development. We consider a construction project as substantially completed and held available for occupancy upon the completion of tenant improvements, but no later than one year from cessation of major construction activity. We cease capitalization on the portions substantially completed and occupied or held available for occupancy, and capitalize only those costs associated with the portions under construction.

        We allocate the purchase price of real estate to land and building and, if determined to be material, intangibles, such as the value of above-, below-, and at-market leases and origination costs associated with the in-place leases. We depreciate the amount allocated to building and other intangible assets over their estimated useful lives, which generally range from three to 40 years and from one to 14 years, respectively. The values of the above- and below-market leases are amortized and recorded as either an increase (in the case of below-market leases) or a decrease (in the case of above-market leases) to rental income over the remaining term of the associated lease, which generally range from one to 14 years. The value associated with in-place leases are amortized over the expected term of the associated lease, which generally range from one to 14 years. If a tenant vacates its space prior to the contractual termination of the lease and no rental payments are being made on the lease, any unamortized balance of the related intangible will be written off. The tenant improvements and origination costs are amortized as an expense over the remaining life of the lease (or charged against earnings if the lease is terminated prior to its contractual expiration date). We assess fair value of the leases based on estimated cash flow projections that utilize appropriate discount and capitalization rates and available market information. Estimates of future cash flows are based on a number of factors including the historical operating results, known trends, and market/economic conditions that may affect the property.

Investment in Unconsolidated Joint Ventures

        We account for our investments in unconsolidated joint ventures under the equity method of accounting in cases where we exercise significant influence over, but do not control, these entities and are not considered to be the primary beneficiary. We consolidate those joint ventures that we control or which are VIEs and where we are considered to be the primary beneficiary. In all these joint ventures, the rights of the joint venture partner are both protective as well as participating. Unless we are determined to be the primary beneficiary in a VIE, these participating rights preclude us from consolidating these non-VIE entities. These investments are recorded initially at cost, as investments in unconsolidated joint ventures, and subsequently adjusted for equity in net income (loss) and cash contributions and distributions. Any difference between the carrying amount of these investments on our balance sheet and the underlying equity in net assets is amortized as an adjustment to equity in net income (loss) of unconsolidated joint ventures over the lesser of the joint venture term or 10 years. Equity income (loss) from unconsolidated joint ventures is allocated based on our ownership or economic interest in each joint venture. When a capital event (as defined in each joint venture agreement) such as a refinancing occurs, if return thresholds are met, future equity income will be allocated at our increased economic percentage. We recognize incentive income from unconsolidated real estate joint ventures as income to the extent it is earned and not subject to a clawback feature. Distributions we receive from unconsolidated real estate joint ventures in excess of our basis in the investment are recorded as offsets to our investment balance if we remain liable for future obligations of the joint venture or may otherwise be committed to provide future additional financial support. None of the joint venture debt is recourse to us, except for $200.0 million which we guarantee at one joint venture and performance guarantees under a master lease at another joint venture.

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Revenue Recognition

        Rental revenue is recognized on a straight-line basis over the term of the lease. The excess of rents recognized over amounts contractually due pursuant to the underlying leases are included in deferred rents receivable on the accompanying balance sheets. We establish, on a current basis, an allowance for future potential tenant credit losses, which may occur against this account. The balance reflected on the balance sheet is net of such allowance.

        Interest income on debt and preferred equity investments is recognized over the life of the investment using the effective interest method and recognized on the accrual basis. Fees received in connection with loan commitments are deferred until the loan is funded and are then recognized over the term of the loan as an adjustment to yield. Anticipated exit fees, whose collection is expected, are also recognized over the term of the loan as an adjustment to yield. Fees on commitments that expire unused are recognized at expiration.

        Income recognition is generally suspended for debt and preferred equity investments at the earlier of the date at which payments become 90 days past due or when, in the opinion of management, a full recovery of income and principal becomes doubtful. Income recognition is resumed when the loan becomes contractually current and performance is demonstrated to be resumed.

Allowance for Doubtful Accounts

        We maintain an allowance for doubtful accounts for estimated losses resulting from the inability of our tenants to make required payments. If the financial condition of a specific tenant were to deteriorate, resulting in an impairment of its ability to make payments, additional allowances may be required.

Reserve for Possible Credit Losses

        The expense for possible credit losses in connection with debt and preferred equity investments is the charge to earnings to increase the allowance for possible credit losses to the level that we estimate to be adequate, based on Level 3 data, considering delinquencies, loss experience and collateral quality. Other factors considered relate to geographic trends and product diversification, the size of the portfolio and current economic conditions. Based upon these factors, we establish the provision for possible credit losses on each individual investment. When it is probable that we will be unable to collect all amounts contractually due, the investment is considered impaired.

        Where impairment is indicated on an investment that is held to maturity, a valuation allowance is measured based upon the excess of the recorded investment amount over the net fair value of the collateral. Any deficiency between the carrying amount of an asset and the calculated value of the collateral is charged to expense. We recorded approximately $10.9 million, $19.8 million and $38.4 million in loan loss reserves and charge offs during the years ended December 31, 2011, 2010 and 2009, respectively, on investments being held to maturity, and none, $1.0 million and $69.1 million against our held for sale investment during the years ended December 31, 2011, 2010 and 2009, respectively. We also recorded approximately $4.4 million and $3.7 million in recoveries during the years ended December 31, 2011 and 2010, respectively, in connection with the sale of investments.

        Debt and preferred equity investments held for sale are carried at the lower of cost or fair market value using available market information obtained through consultation with dealers or other originators of such investments as well as discounted cash flow models based on Level 3 data pursuant to ASC 820-10. As circumstances change, management may conclude not to sell an investment designated as held for sale. In such situations, the loan will be reclassified at its net carrying value to debt and preferred equity investments held to maturity. For these reclassified loans, the difference between the current carrying value and the expected cash to be collected at maturity will be accreted into income over the remaining term of the loan.

Derivative Instruments

        In the normal course of business, we use a variety of derivative instruments to manage, or hedge, interest rate risk. We require that hedging derivative instruments be effective in reducing the interest rate risk exposure that

43

they are designated to hedge. This effectiveness is essential for qualifying for hedge accounting. Some derivative instruments are associated with an anticipated transaction. In those cases, hedge effectiveness criteria also require that it be probable that the underlying transaction occurs. Instruments that meet these hedging criteria are formally designated as hedges at the inception of the derivative contract.

        To determine the fair values of derivative instruments, we use a variety of methods and assumptions that are based on market conditions and risks existing at each balance sheet date. For the majority of financial instruments including most derivatives, long-term investments and long-term debt, standard market conventions and techniques such as discounted cash flow analysis, option-pricing models, replacement cost, and termination cost are used to determine fair value. All methods of assessing fair value result in a general approximation of value, and such value may never actually be realized.

Results of Operations

Comparison of the year ended December 31, 2011 to the year ended December 31, 2010

        The following comparison for the year ended December 31, 2011, or 2011, to the year ended December 31, 2010, or 2010, makes reference to the following: (i) the effect of the "Same-Store Properties," which represents all operating properties owned by us in the same manner at January 1, 2010 and at December 31, 2011 and totaled 45 of our 51 consolidated properties, representing approximately 68% of our share of annualized rental revenue, (ii) the effect of the "Acquisitions," which represents all properties or interests in properties acquired in 2010 and 2011 and all non-Same-Store Properties, including properties deconsolidated during the period, and (iii) "Other," which represents corporate level items not allocable to specific properties, as well as the Service Corporation and eEmerge. Assets classified as held for sale, are excluded from the following discussion.

Rental Revenues (in millions)	2011		2010		$ Change			% Change
Rental revenue	$	961.9	$	782.5	$	179.4			22.9	%
Escalation and reimbursement revenue		145.6		118.2		27.4			23.2
Total	$	1,107.5	$	900.7	$	206.8			23.0	%
Same-Store Properties	$	880.0	$	873.3	$	6.7			0.8	%
Acquisitions		226.3		24.1		202.2			839.0
Other		1.2		3.3		(2.1	)		(63.6	)
Total	$	1,107.5	$	900.7	$	206.8			23.0	%

        Occupancy in the Same-Store Properties was 90.3% at December 31, 2011 and 89.4% at December 31, 2010. The increase in rental revenue from the Acquisitions is primarily due to owning these properties during 2011 compared to a partial period or not being included in 2010.

        Occupancy for our same-store Manhattan portfolio at December 31, 2011 was 94.0 percent as compared to 92.7 percent for the same period in the previous year. During the year ended December 31, 2011, we signed 205 office leases in our Manhattan portfolio totaling 2.3 million square feet. Forty-three leases totaling 614,833 square feet represented office leases that replaced previous vacancies, while 162 office leases comprising 1,690,423 square feet had average starting rents of $55.34 per rentable square foot, representing a 7.3 percent increase over the previously fully escalated rents on the same office spaces. The average lease term on the Manhattan office leases signed during the year ended December 31, 2011 was 9.6 years and average tenant concessions were 3.7 months of free rent with a tenant improvement allowance and lease commissions of $49.59 per rentable square foot. Of the 2.0 million square feet of office leases which commenced during 2011, 434,018 square feet represented office leases that replaced previous vacancies, while 1.6 million square feet represented office leases that had average starting rents of $53.37 per rentable square foot, representing a 4.3 percent increase over the previously fully escalated rents on the same office spaces.

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        Occupancy for our Suburban portfolio was 86.2 percent at December 31, 2011 as compared to 87.3 percent for the same period in the previous year. During the year ended December 31, 2011, we signed 109 office leases in the Suburban portfolio totaling 574,046 square feet. Thirty-three leases and 183,425 square feet represented office leases that replaced previous vacancies, while 76 office leases comprising 390,621 square feet had average starting rents of $33.86 per rentable square foot, representing a 2.5 percent decrease over the previously fully escalated rents on the same office spaces. The average lease term on the Suburban office leases signed during the year ended December 31, 2011was 7.3 years and average tenant concessions were 6.9 months of free rent with a tenant improvement allowance and lease commissions of $33.16 per rentable square foot. Of the 528,788 square feet of office leases which commenced during 2011, 107,595 square feet represented office leases that replaced previous vacancies, while 421,193 square feet represented office leases that had average starting rents of $33.75 per rentable square foot, representing a 2.8 percent decrease over the previously fully escalated rents on the same office spaces.

        At December 31, 2011, approximately 4.1% and 11.6% of the space leased at our consolidated Manhattan and Suburban properties, respectively, is expected to expire during 2012. We estimated that the current market rents on these expected 2012 lease expirations at our consolidated Manhattan and Suburban properties would be approximately 12.7% and 3.6% higher, respectively, than then existing in-place fully escalated rents. We estimated that the current market rents on all our consolidated Manhattan and Suburban properties were approximately 10.9% and 3.0% higher, respectively, than the existing in-place fully escalated rents on leases that are scheduled to expire in all future years.

        The increase in escalation and reimbursement revenue was due to higher recoveries at the Acquisitions ($26.8 million) and Same-Store Properties ($0.9 million) which were offset by lower recoveries at the Other properties ($0.3 million). The increase in recoveries at the Same-Store Properties was primarily due to operating expense escalations ($2.3 million) which were partially offset by lower real estate tax recoveries ($1.0 million) and electric reimbursements ($0.4 million).

Investment and Other Income (in millions)	2011		2010		$ Change			% Change
Equity in net income of unconsolidated joint ventures	$	1.6	$	39.6	$	(38.0	)		(96.0	)%
Investment and preferred equity income		120.4		147.9		(27.5	)		(18.6	)
Other income		35.5		35.7		(0.2	)		(0.6	)
Total	$	157.5	$	223.2	$	(65.7	)		(29.4	)%

        The decrease in equity in net income of unconsolidated joint ventures was primarily due to lower net income contributions from 800 Third Avenue ($0.7 million), 1221 Avenue of the Americas which was sold in May 2010 ($10.5 million), 1515 Broadway, which we consolidated in April 2011 ($7.8 million), 1552 Broadway ($1.3 million), 280 Park Avenue ($18.1 million) and 2 Herald Square ($5.9 million) and 885 Third Avenue ($7.1 million), both of which were acquired in December 2010. This was partially offset by higher net income contributions primarily from our investments in Jericho Plaza ($0.8 million), 1551 Broadway due to a refinancing prior to the sale ($2.2 million), 3 Columbus Circle ($1.6 million), 450 West 33^rd Street, a mezzanine debt joint venture ($1.1 million), 717 Fifth Avenue ($1.8 million), 180 Broadway ($1.2 million) and 600 Lexington Avenue ($4.2 million). Occupancy at our joint venture properties was 92.3% at December 31, 2011 and 95.2% at December 31, 2010. At December 31, 2011, approximately 7.0% and 10.7% of the space leased at our Manhattan and Suburban joint venture properties are expected to expire during 2012. We estimated that current market rents on these expected 2012 lease expirations at our Manhattan and Suburban joint venture properties were approximately 29.5% higher and 5.7% lower, respectively, than then existing in-place fully escalated rents.

        Investment and preferred equity income decreased during 2011. In 2011, debt investments totaling $352.8 million (inclusive of the 280 Park Avenue transaction) were sold or repaid resulting in the recognition of additional income of $43.0 million during 2011. In September 2010, 510 Madison Avenue was sold by the owner. The first mortgage loan and senior mezzanine loan, which we had purchased in December 2009 and February 2010 for $180.5 million in the aggregate, were repaid at par. We recognized additional income upon the

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repayment of the loans of approximately $64.8 million. During 2011, we also originated or purchased $615.0 million of new debt investments at a weighted average current yield of 10.0%. The weighted average investment balance outstanding and weighted average yield were $809.1 million and 7.9%, respectively, for 2011 compared to $862.0 million and 8.5%, respectively, for 2010. As of December 31, 2011, the debt and preferred equity investments had a weighted average term to maturity of approximately 3.0 years.

        The decrease in other income was primarily due to lower contribution from the Service Corporation ($2.4 million) and lower lease buy-out income ($1.6 million), which was partially offset by an increase in other fee income ($2.7 million).

Property Operating Expenses (in millions)	2011		2010		$ Change			% Change
Operating expenses	$	263.7	$	224.7	$	39.0			17.4	%
Real estate taxes		174.5		145.8		28.7			19.7
Ground rent		32.9		31.2		1.7			5.4
Total	$	471.1	$	401.7	$	69.4			17.3	%
Same-Store Properties	$	385.9	$	375.6	$	10.3			2.7	%
Acquisitions		74.0		12.8		61.2			478.1
Other		11.2		13.3		(2.1	)		(15.8	)
Total	$	471.1	$	401.7	$	69.4			17.3	%

        Same-Store Properties operating expenses increased approximately $10.3 million. There were increases in real estate taxes ($4.4 million), payroll costs ($1.1 million), cleaning and repairs and maintenance ($4.7 million), ground rent ($1.7 million) and other expenses ($0.2 million). This was partially offset by decreases in utilities ($0.3 million) and insurance costs ($1.5 million).

Other Expenses (in millions)	2011		2010		$ Change			% Change
Interest expense, net of interest income	$	300.0	$	239.7	$	60.3			25.2	%
Depreciation and amortization expense		277.3		225.2		52.1			23.1
Loan loss and other investment reserves, net of recoveries		6.7		17.8		(11.1	)		(62.4	)
Transaction related costs		5.6		11.8		(6.2	)		(52.5	)
Marketing, general and administrative expense		80.1		75.9		4.2			5.5
Total	$	669.7	$	570.4	$	99.3			17.4	%

        The increase in interest expense was primarily attributable to higher average consolidated debt balances outstanding during the period due to the increase in investment activity in 2011, inclusive of the acquisitions of 1515 Broadway, 521 Fifth Avenue and 180 Maiden Lane. The weighted average debt balance outstanding increased from $4.8 billion during the year ended December 30, 2010 to $5.8 billion during the year ended December 31, 2011. The weighted average interest rate increased from 4.76% for the year ended December 31, 2010 to 4.87% for the year ended December 31, 2011.

        Loan loss and other investment reserves decreased year over year. We recorded $11.1 million in reserves and $4.4 million in recoveries in 2011 compared to $17.8 million in reserves and no recoveries in 2010.

        Marketing, general and administrative expense represented 5.4% of total revenues, including our share of joint venture revenues, in 2011 compared to 5.6% in 2010.

Comparison of the year ended December 31, 2010 to the year ended December 31, 2009

        The following comparison for the year ended December 31, 2010, or 2010, to the year ended December 31, 2009, or 2009, makes reference to the following: (i) the effect of the "Same-Store Properties," which represents all operating properties owned by us at January 1, 2009 and at December 31, 2010, excluding properties which were

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sold or reclassified to assets held for sale in 2011 and total 43 of our 47 consolidated properties, representing approximately 70% of our share of annualized rental revenue, (ii) the effect of the "Acquisitions," which represents all properties or interests in properties acquired subsequent to January 1, 2009 and all non-Same-Store Properties, including properties deconsolidated during the period, and (iii) "Other," which represents corporate level items not allocable to specific properties, as well as the Service Corporation and eEmerge. Assets classified as held for sale, are excluded from the following discussion.

Rental Revenues (in millions)	2010		2009		$ Change			% Change
Rental revenue	$	782.5	$	746.6	$	35.9			4.8	%
Escalation and reimbursement revenue		118.2		119.0		(0.8	)		(0.7	)
Total	$	900.7	$	865.6	$	35.1			4.1	%
Same-Store Properties	$	855.3	$	851.4	$	3.9			0.5	%
Acquisitions		43.7		8.5		35.2			414.1
Other		1.7		5.7		(4.0	)		(70.2	)
Total	$	900.7	$	865.6	$	35.1			4.1	%

        Our consolidated rental revenue increased primarily from the Acquisitions, which included 100 Church Street (January 2010) and 125 Park Avenue (August 2010). Occupancy in the Same-Store Properties was 91.5% at December 31, 2010 and 93.5% at December 31, 2009.

        During the year ended December 31, 2010, we commenced 232 leases in the Manhattan portfolio totaling 2.4 million square feet, of which 194 leases and 2.3 million square feet represented office leases. Average starting Manhattan office rents of $43.17 per rentable square foot on 1.8 million square feet of office leases commenced during the year ended December 31, 2010 represented a 2.8% decrease over the previously fully escalated rents. The average lease term was 10.6 years and average tenant concessions were 4.8 months of free rent with a tenant improvement allowance of $35.04 per rentable square foot.

        During the year ended December 31, 2010, we commenced 117 leases in the Suburban portfolio totaling 899,000 square feet, of which 99 leases and 857,000 square feet represented office leases. Average starting Suburban office rents of $29.30 per rentable square foot on 695,000 square feet of office leases commenced during for the year ended December 31, 2010 represented a 9.8% decrease over the previously fully escalated rents. The average lease term was 6.8 years and average tenant concessions were 3.7 months of free rent with a tenant improvement allowance of $14.98 per rentable square foot.

        At December 31, 2010, we estimated that the current market rents on our consolidated Manhattan properties and consolidated Suburban properties were approximately 5.0% and 5.1% higher, respectively, than then existing in-place fully escalated rents. Approximately 8.3% of the space leased at our consolidated properties expires during 2011.

        The decrease in escalation and reimbursement revenue was due to lower recoveries at the Same-Store Properties ($4.0 million) which was partially offset by an increase in recoveries from the Acquisitions ($3.5 million). The decrease in recoveries at the Same-Store Properties was primarily due to lower electric reimbursements ($3.9 million) and operating expense and real estate tax escalations ($0.7 million) which were partially offset by other reimbursed expenses ($0.6 million).

Investment and Other Income (in millions)	2010		2009		$ Change			% Change
Equity in net income from unconsolidated joint ventures	$	39.6	$	62.9	$	(23.3	)		(37.0	)%
Investment and preferred equity income		147.9		65.6		82.3			125.5
Other income		35.7		47.1		(11.4	)		(24.2	)
Total	$	223.2	$	175.6	$	47.6			27.1	%

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        The decrease in equity in net income of unconsolidated joint ventures was primarily due to lower net income contributions from 1221 Avenue of the Americas due to the sale of our 45% beneficial interest in this joint venture in May 2010 ($21.2 million), 521 Fifth Avenue ($1.2 million), 600 Lexington Avenue due to the expensing of transaction related costs ($3.6 million) and 1515 Broadway ($5.2 million). This was partially offset by higher net income contributions primarily from our investments in 100 Park Avenue ($3.8 million), 141 Fifth Avenue ($1.2 million), 29 West 34^th Street ($1.0 million) and Gramercy ($3.5 million).

        Occupancy at our joint venture properties was 95.0% at December 31, 2010 and 95.1% at December 31, 2009. At December 31, 2010, we estimated that current market rents at our Manhattan and Suburban joint venture properties were approximately 16.3% and 9.3% higher, respectively, than then existing in-place fully escalated rents. Approximately 3.7% of the space leased at our joint venture properties expires during 2011.

        Preferred equity and investment income increased primarily due to additional income generated upon the repayment of loans as well as new investment activity. In addition, in September 2010, 510 Madison Avenue was sold by the owner. The first mortgage loan and senior mezzanine loan, which we had purchased in December 2009 and February 2010 for $180.5 million in the aggregate, were repaid at par. We recognized additional income upon the repayment of the loans of approximately $64.8 million. The income was recorded in preferred equity and investment income on the accompanying statement of income. In addition, the weighted average investment balance outstanding and weighted average yield were $862.0 million and 8.5%, respectively, for 2010 compared to $652.9 million and 8.4%, respectively, for 2009.

        The decrease in other income was primarily due to lower fee income earned ($11.2 million).

Property Operating Expenses (in millions)	2010		2009		$ Change			% Change
Operating expenses	$	224.7	$	209.3	$	15.4			7.4	%
Real estate taxes		145.8		136.6		9.2			6.7
Ground rent		31.2		31.8		(0.6	)		(1.9	)
Total	$	401.7	$	377.7	$	24.0			6.4	%
Same-Store Properties	$	365.0	$	359.5	$	5.5			1.5	%
Acquisitions		24.6		4.2		20.4			485.7
Other		12.1		14.0		(1.9	)		(13.6	)
Total	$	401.7	$	377.7	$	24.0			6.4	%

        Same-Store Properties operating expenses, excluding real estate taxes, increased approximately $1.4 million. There were increases in payroll costs ($3.1 million) and repairs and maintenance ($1.5 million). This was partially offset by decreases in utilities ($2.5 million) and ground rent ($0.7 million).

        The increase in real estate taxes attributable to the Same-Store Properties ($4.1 million) due to higher assessed property values and increased tax rates.

Other Expenses (in millions)	2010		2009		$ Change			% Change
Interest expense, net of interest income	$	239.7	$	239.7	$	—			—	%
Depreciation and amortization expense		225.2		220.4		4.8			2.2
Loan loss and other investment reserves, net of recoveries		17.8		150.5		(132.7	)		(88.2	)
Transaction related costs		11.9		—		11.9			100.0
Marketing, general and administrative expense		75.9		74.0		1.9			2.6
Total	$	570.5	$	684.6	$	(114.1	)		(16.7	)%

        The decrease in interest expense was primarily attributable to the early repurchase of our exchangeable and non-exchangeable notes and the reduction of the outstanding balance on our 2007 unsecured revolving credit facility which was partially offset by the issuance of new exchangeable and non-exchangeable notes. The weighted

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average debt balance decreased from $5.1 billion as of December 31, 2009 to $4.8 billion as of December 31, 2010, while the weighted average interest rate increased from 4.3% for the year ended December 31, 2009 to 4.76% for the year ended December 31, 2010.

        We expensed approximately $11.9 million of transaction related costs during the year ended December 31, 2010. Transaction related costs included approximately $1.8 million for non-recoverable costs incurred in connection with the pursuit of a redevelopment project.

        Marketing, general and administrative expense represented 6.9% of total revenues in 2010 compared to 7.4% in 2009.

Liquidity and Capital Resources

        We currently expect that our principal sources of funds to meet our short-term and long-term liquidity requirements for working capital and funds for acquisition and redevelopment of properties, tenant improvements, leasing costs, repurchases or repayments of outstanding indebtedness (which may include exchangeable debt) and for debt and preferred equity investments will include:

(1)

Cash flow from operations;



(2)

Cash on hand;



(3)

Borrowings under our 2011 revolving credit facility;



(4)

Other forms of secured or unsecured financing;



(5)

Net proceeds from divestitures of properties and redemptions, participations and dispositions of debt and preferred equity investments; and



(6)

Proceeds from common or preferred equity or debt offerings by us, our Operating Partnership (including issuances of limited partnership units in the operating partnership and trust preferred securities) or ROP.

        Cash flow from operations is primarily dependent upon the occupancy level of our portfolio, the net effective rental rates achieved on our leases, the collectability of rent and operating escalations and recoveries from our tenants and the level of operating and other costs. Additionally, we believe that our joint venture investment programs will also continue to serve as a source of capital.

        Our combined aggregate principal maturities of our property mortgages and other loans payable, corporate obligations and our share of joint venture debt, including as-of-right extension options, as of December 31, 2011 are as follows (in thousands):

	2012		2013		2014		2015		2016		Thereafter		Total
Property Mortgages and loans	$	52,443	$	568,649	$	647,776	$	270,382	$	556,400	$	2,278,190	$	4,373,840
Corporate obligations		119,423		—		98,578		657		624,804		877,194		1,720,656
Joint venture debt-our share		176,457		93,683		123,983		102,476		527,814		800,102		1,824,515
Total	$	348,323	$	662,332	$	870,337	$	373,515	$	1,709,018	$	3,955,486	$	7,919,011

        As of December 31, 2011, we had approximately $163.5 million of cash on hand, inclusive of approximately $25.3 million of marketable securities. We expect to generate positive cash flow from operations for the foreseeable future. We may seek to access private and public debt and equity capital when the opportunity presents itself, although there is no guarantee that this capital will be made available to us at efficient levels or at all. Management believes that these sources of liquidity, if we are able to access them, along with potential refinancing opportunities for secured debt, will allow us to satisfy our debt obligations, as described above, upon maturity, if not before.

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        We also have investments in several real estate joint ventures with various partners who we consider to be financially stable and who have the ability to fund a capital call when needed. Most of our joint ventures are financed with non-recourse debt. We believe that property level cash flows along with unfunded committed indebtedness and proceeds from the refinancing of outstanding secured indebtedness will be sufficient to fund the capital needs of our joint venture properties.

Cash Flows

        The following summary discussion of our cash flows is based on our consolidated statements of cash flows in "Item 8. Financial Statements" and is not meant to be an all-inclusive discussion of the changes in our cash flows for the periods presented below.

        Cash and cash equivalents were $138.2 million and $332.8 million at December 31, 2011 and 2010, respectively, representing a decrease of $194.6 million. The decrease was a result of the following changes in cash flows (in thousands):

	Year ended December 31,
	2011			2010			Increase (Decrease)
Net cash provided by operating activities	$	312,860		$	321,058		$	(8,198	)
Net cash (used in) provided by investing activities	$	(739,597	)	$	18,815		$	(758,412	)
Net cash provided by (used in) financing activities	$	232,099		$	(350,758	)	$	582,857

        Our principal source of operating cash flow is related to the leasing and operating of the properties in our portfolio. Our properties provide a relatively consistent stream of cash flow that provides us with resources to pay operating expenses, debt service and fund quarterly dividend and distribution payment requirements. At December 31, 2011, our portfolio was 91.2% occupied. Our debt and preferred equity and joint venture investments also provide a steady stream of operating cash flow to us.

        Cash is used in investing activities to fund acquisitions, redevelopment projects and recurring and nonrecurring capital expenditures. We selectively invest in new projects that enable us to take advantage of our development, leasing, financing and property management skills and invest in existing buildings that meet our investment criteria. During the year ended December 31, 2011, when compared to the year ended December 31, 2010, we used cash primarily for the following investing activities (in thousands):

Acquisitions of real estate	$	(176,142	)
Capital expenditures and capitalized interest		(50,955	)
Escrow cash-capital improvements/acquisition deposits		69,496
Joint venture investments		(22,076	)
Distributions from joint ventures		59,439
Proceeds from sales of real estate/partial interest in property		(462,573	)
Debt and preferred equity and other investments		(175,601	)
Increase in net cash provided by investing activities	$	(758,412	)

        Funds spent on capital expenditures, which comprise building and tenant improvements, increased from $108.1 million for the year ended December 31, 2010 to $159.1 million for the year ended December 31, 2011. The increased capital expenditures relate primarily to costs incurred in connection with the redevelopment of properties and the build-out of space for tenants resulting from leasing activity.

        We fund our investment activity through various sources including property-level financing, our 2011 revolving credit facility, senior unsecured notes, convertible or exchangeable securities, construction loans, asset sales and

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from time to time, we issue common or preferred stock. During the year ended December 31, 2011, when compared to the year ended December 31, 2010, we used cash for the following financing activities (in thousands):

Proceeds from our debt obligations	$	1,887,716
Repayments under our debt obligations		(1,612,064	)
Proceeds from issuance of common stock		516,168
Proceeds from issuance of preferred stock		(122,041	)
Redemption of noncontrolling interests		13,012
Noncontrolling interests, contributions in excess of distributions		(133,093	)
Other financing activities		38,041
Dividends and distributions paid		(4,882	)
Increase in cash used in financing activities	$	582,857

Capitalization

        As of December 31, 2011, we had 85,797,723 shares of common stock, 2,764,737 units of limited partnership interest in our operating partnership held by persons other than the Company, 11,700,000 shares of our 7.625% Series C cumulative redeemable preferred stock, or Series C preferred stock, and 4,000,000 shares of our 7.875% Series D cumulative redeemable preferred stock, or Series D preferred stock, outstanding. In addition, we also had preferred limited partnership interests in our Operating Partnership having aggregate liquidation preferences of $33.8 million held by persons other than the Company.

        In 2011, we, along with the Operating Partnership, entered into "at-the-market" equity offering programs, or ATM programs, to sell an aggregate of $775.0 million of our common stock. As of December 31, 2011, we had sold 6.7 million shares of our common stock through the ATM programs for aggregate gross proceeds of approximately $525.0 million ($517.1 million of net proceeds after related expenses). The net proceeds were used to repay debt, fund new investments and for other corporate purposes. As of December 31, 2011, we had $250.0 million available to issue under the ATM programs.

Rights Plan

        We adopted a shareholder rights plan which provided, among other things, that when specified events occur, our common stockholders would be entitled to purchase from us a new created series of junior preferred shares. This plan expired in March 2010.

Dividend Reinvestment and Stock Purchase Plan

        We filed a registration statement with the SEC for our dividend reinvestment and stock purchase plan, or DRIP, which was declared effective in March 2009. We registered 2,000,000 shares of common stock under the DRIP. The DRIP commenced on September 24, 2001.

        During the years ended December 31, 2011 and 2010, approximately 473 and 250,900 shares of our common stock were issued and approximately $34,000 and $11.3 million of proceeds were received, respectively, from dividend reinvestments and/or stock purchases under the DRIP. DRIP shares may be issued at a discount to the market price.

Second Amended and Restated 2005 Stock Option and Incentive Plan

        Subject to adjustments upon certain corporate transactions or events, up to a maximum of 10,730,000 fungible units may be granted as options, restricted stock, phantom shares, dividend equivalent rights and other equity-based awards under the Second Amended and Restated 2005 Stock Option and Incentive Plan, or the 2005 Plan. At December 31, 2011, approximately 3.8 million fungible units, calculated on a weighted basis, were available for issuance under the 2005 Plan, or 4.8 million shares of common stock if all shares available under the 2005 Plan were issued as five-year stock options.

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2003 Long-Term Outperformance Compensation Program

        Our board of directors adopted a long-term, seven-year compensation program for certain members of senior management. The program provided for restricted stock awards to be made to plan participants if the holders of our common equity achieved a total return in excess of 40% over a 48-month period commencing April 1, 2003. In April 2007, the compensation committee determined that under the terms of the 2003 Outperformance Plan, as of March 31, 2007, the performance hurdles had been met and the maximum performance pool of $22,825,000, taking into account forfeitures, was established. In connection with this event, approximately 166,312 shares of restricted stock (as adjusted for forfeitures) were allocated under the 2005 Plan. In accordance with the terms of the program, 40% of each award vested on March 31, 2007 and the remainder vested ratably over the subsequent three years based on continued employment. The fair value of the awards under this program on the date of grant was determined to be $3.2 million. This fair value is expensed over the term of the restricted stock award. Forty percent of the value of the award was amortized over four years from the date of grant and the balance was amortized, in equal parts, over five, six and seven years (i.e., 20% of the total value was amortized over five years (20% per year), 20% of the total value was amortized over six years (16.67% per year) and 20% of the total value was amortized over seven years (14.29% per year). We recorded compensation expense of $23,000 and $0.1 million related to this plan during the years ended December 31, 2010 and 2009, respectively. The cost of the 2003 Outperformance Plan had been fully expensed as of March 31, 2010.

2005 Long-Term Outperformance Compensation Program

        In December 2005, the compensation committee of our board of directors approved a long-term incentive compensation program, the 2005 Outperformance Plan. Participants in the 2005 Outperformance Plan were entitled to earn LTIP Units in our Operating Partnership if our total return to stockholders for the three-year period beginning December 1, 2005 exceeded a cumulative total return to stockholders of 30%; provided that participants were entitled to earn LTIP Units earlier in the event that we achieved maximum performance for 30 consecutive days. The total number of LTIP Units that could be earned was to be a number having an assumed value equal to 10% of the outperformance amount in excess of the 30% benchmark, subject to a maximum dilution cap equal to the lesser of 3% of our outstanding shares and units of limited partnership interest as of December 1, 2005 or $50.0 million. On June 14, 2006, the compensation committee determined that under the terms of the 2005 Outperformance Plan, as of June 8, 2006, the performance period had accelerated and the maximum performance pool of $49,250,000, taking into account forfeitures, had been earned. Under the terms of the 2005 Outperformance Plan, participants also earned additional LTIP Units with a value equal to the distributions that would have been paid with respect to the LTIP Units earned if such LTIP Units had been earned at the beginning of the performance period. The total number of LTIP Units earned under the 2005 Outperformance Plan by all participants as of June 8, 2006 was 490,475. Under the terms of the 2005 Outperformance Plan, all LTIP Units that were earned remained subject to time-based vesting, with one-third of the LTIP Units earned vested on each of November 30, 2008 and the first two anniversaries thereafter based on continued employment. The earned LTIP Units received regular quarterly distributions on a per unit basis equal to the dividends per share paid on our common stock, whether or not they were vested.

        The cost of the 2005 Outperformance Plan (approximately $8.0 million, subject to adjustment for forfeitures) was amortized into earnings through the final vesting period. We recorded approximately $1.6 million and $2.3 million of compensation expense during the years ended December 31, 2010 and 2009, respectively, in connection with the 2005 Outperformance Plan. The cost of the 2005 Outperformance Plan had been fully expensed as of June 30, 2010.

2006 Long-Term Outperformance Compensation Program

        In August 2006, the compensation committee of our board of directors approved a long-term incentive compensation program, the 2006 Outperformance Plan. The performance criteria under the 2006 Outperformance Plan were not met and, accordingly, no LTIP Units were earned under the 2006 Outperformance Plan.

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        The cost of the 2006 Outperformance Plan (approximately $16.4 million, subject to adjustment for forfeitures) was amortized into earnings through July 31, 2011. We recorded approximately $70,000, $0.2 million and $0.4 million of compensation expense during the years ended December 31, 2011, 2010 and 2009, respectively, in connection with the 2006 Outperformance Plan. The performance criteria under the 2006 Outperformance Plan were not met and, accordingly, no LTIP Units were earned under the 2006 Outperformance Plan. The cost of the 2006 Outperformance Plan had been fully expensed as of September 30, 2011.

SL Green Realty Corp. 2010 Notional Unit Long-Term Compensation Plan

        In December 2009, the compensation committee of our board of directors approved the general terms of the SL Green Realty Corp. 2010 Notional Unit Long-Term Compensation Program, or the 2010 Long Term Compensation Plan. The 2010 Long-Term Compensation Plan is a long-term incentive compensation plan pursuant to which award recipients may earn, in the aggregate, from approximately $15 million up to approximately $75 million of LTIP Units in our Operating Partnership based on our stock price appreciation over three years beginning on December 1, 2009; provided that, if maximum performance has been achieved, approximately $25 million of awards may be earned at any time after the beginning of the second year and an additional approximately $25 million of awards may be earned at any time after the beginning of the third year. The amount of awards earned will range from approximately $15 million if our aggregate stock price appreciation during the performance period is 25% to the maximum amount of approximately $75 million if our aggregate stock price appreciation during the performance period is 50% or greater. No awards will be earned if our aggregate stock price appreciation is less than 25%. After the awards are earned, they will remain subject to vesting, with 50% of any LTIP Units earned vesting on January 1, 2013 and an additional 25% vesting on each of January 1, 2014 and 2015 based, in each case, on continued employment through the vesting date. We will not pay distributions on any LTIP Units until they are earned, at which time we will pay all distributions that would have been paid on the earned LTIP Units since the beginning of the performance period. In January 2011, the compensation committee determined that under the terms of the 2010 Long Term Compensation Plan, as of December 5, 2010, maximum performance had been achieved and, accordingly, approximately 366,815 LTIP Units had been earned under the 2010 Long-Term Compensation Plan. In January 2012, the compensation committee determined that under the terms of the 2010 Long Term Compensation Plan, as of December 1, 2011, maximum performance had been achieved and, accordingly, approximately 385,583 LTIP Units had been earned under the 2010 Long-Term Compensation Plan. In accordance with the terms of the program, 50% of these LTIP Units will vest on January 1, 2013 and the remainder is scheduled to vest ratably over the subsequent two years based on continued employment.

        Overall, the 2010 Long Term Compensation Plan contemplates maximum potential awards of 1,179,987 LTIP Units and a cap of approximately $75 million when earned. However, sufficient shares were not available under the 2005 Plan to fund the entire 2010 Long Term Compensation Plan in December 2009, and the awards granted at that time, in the aggregate, were limited to 744,128 LTIP Units, subject to performance-based and time-based vesting, unless and until additional shares became available under the 2005 Plan prior to the end of the performance period for the 2010 Long Term Compensation Plan. At our annual meeting of stockholders on June 15, 2010, our stockholders approved the adoption of the 2005 Plan which, among other things, increased the number of shares available under the plan. That increase allowed us to award the balance of the LTIP Units due under the 2010 Long-Term Compensation Plan. The remaining awards were granted in June 2010. The cost of the 2010 Long Term Compensation Plan (approximately $31.7 million, subject to forfeitures) will be amortized into earnings through the final vesting period. We recorded compensation expense of approximately $9.3 million, $4.0 million and $0.6 million during the years ended December 31, 2011, 2010 and 2009, respectively, related to this program.

SL Green Realty Corp. 2011 Outperformance Plan

        In August 2011, the compensation committee of our board of directors approved the general terms of the SL Green Realty Corp. 2011 Outperformance Plan, or the 2011 Outperformance Plan. Participants in the 2011 Outperformance Plan may earn, in the aggregate, up to $85 million of LTIP Units in our Operating Partnership

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based on our total return to stockholders for the three-year period beginning September 1, 2011. Under the 2011 Outperformance Plan, participants will be entitled to share in a "performance pool" comprised of LTIP Units with a value equal to 10% of the amount, if any, by which our total return to stockholders during the three-year period exceeds a cumulative total return to stockholders of 25%, subject to the maximum of $85 million of LTIP Units; provided that if maximum performance has been achieved, approximately one-third of each award may be earned at any time after the beginning of the second year and an additional approximately one-third of each award may be earned at any time after the beginning of the third year. LTIP Units earned under the 2011 Outperformance Plan will be subject to continued vesting requirements, with 50% of any awards earned vesting on August 31, 2014 and the remaining 50% vesting on August 31, 2015, subject to continued employment with us through such dates. Participants will not be entitled to distributions with respect to LTIP Units granted under the 2011 Outperformance Plan unless and until they are earned. If LTIP Units are earned, each participant will also be entitled to the distributions that would have been paid had the number of earned LTIP Units been issued at the beginning of the performance period, with such distributions being paid in the form of additional LTIP Units. Thereafter, distributions will be paid currently with respect to all earned LTIP Units, whether vested or unvested.

        As of December 31, 2011, only 50% of the 2011 Outperformance Plan had been granted. The cost of the 2011 Outperformance Plan for the 50% granted (approximately $12.1 million, subject to forfeitures) will be amortized into earnings through the final vesting period. We recorded compensation expense of approximately $0.1 million during the year ended December 31, 2011 related to this program.

Deferred Stock Compensation Plan for Directors

        Under our Independent Director's Deferral Program, which commenced July 2004, our non-employee directors may elect to defer up to 100% of their annual retainer fee, chairman fees and meeting fees. Unless otherwise elected by a participant, fees deferred under the program shall be credited in the form of phantom stock units. The phantom stock units are convertible into an equal number of shares of common stock upon such directors' termination of service from the Board of Directors or a change in control by us, as defined by the program. Phantom stock units are credited to each non-employee director quarterly using the closing price of our common stock on the applicable dividend record date for the respective quarter. Each participating non-employee director's account is also credited for an equivalent amount of phantom stock units based on the dividend rate for each quarter.

        During the year ended December 31, 2011, approximately 8,184 phantom stock units were earned. As of December 31, 2011, there were approximately 66,849 phantom stock units outstanding.

Employee Stock Purchase Plan

        On September 18, 2007, our board of directors adopted the 2008 Employee Stock Purchase Plan, or ESPP, to encourage our employees to increase their efforts to make our business more successful by providing equity-based incentives to eligible employees. The ESPP is intended to qualify as an "employee stock purchase plan" under Section 423 of the Internal Revenue Code of 1986, as amended, and has been adopted by the board to enable our eligible employees to purchase our shares of common stock through payroll deductions. The ESPP became effective on January 1, 2008 with a maximum of 500,000 shares of the common stock available for issuance, subject to adjustment upon a merger, reorganization, stock split or other similar corporate change. We filed a registration statement on Form S-8 with the Securities Exchange Commission with respect to the ESPP. The common stock is offered for purchase through a series of successive offering periods. Each offering period will be three months in duration and will begin on the first day of each calendar quarter, with the first offering period having commenced on January 1, 2008. The ESPP provides for eligible employees to purchase the common stock at a purchase price equal to 85% of the lesser of (1) the market value of the common stock on the first day of the offering period or (2) the market value of the common stock on the last day of the offering period. The ESPP was approved by our stockholders at our 2008 annual meeting of stockholders. As of December 31, 2011, approximately 55,600 shares of our common stock had been issued under the ESPP.

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Market Capitalization

        At December 31, 2011, borrowings under our mortgages and other loans payable, our 2011 revolving credit facility, senior unsecured notes, trust preferred securities and our share of joint venture debt represented 55.7% of our combined market capitalization of approximately $14.2 billion (based on a common stock price of $66.64 per share, the closing price of our common stock on the New York Stock Exchange on December 31, 2011). Market capitalization includes our consolidated debt, common and preferred stock and the conversion of all units of limited partnership interest in our Operating Partnership, and our share of joint venture debt.

Indebtedness

        The table below summarizes our consolidated mortgages and other loans payable, our 2011 revolving credit facility, senior unsecured notes and trust preferred securities outstanding at December 31, 2011 and 2010, respectively (dollars in thousands).

	December 31,
Debt Summary:	2011			2010
Balance
Fixed rate	$	4,802,009		$	4,136,362
Variable rate—hedged		30,000			—
Total fixed rate		4,832,009			4,136,362
Variable rate		921,349			674,318
Variable rate—supporting variable rate assets		341,138			440,333
Total variable rate		1,262,487			1,114,651
Total	$	6,094,496		$	5,251,013
Percent of Total Debt:
Total fixed rate		79.3	%		78.8	%
Variable rate		20.7	%		21.2	%
Total		100.0	%		100.0	%
Effective Interest Rate for the Year:
Fixed rate		5.99	%		5.95	%
Variable rate		2.16	%		1.79	%
Effective interest rate		4.87	%		4.76	%

        The variable rate debt shown above generally bears interest at an interest rate based on 30-day LIBOR (0.30% at both December 31, 2011 and 2010, respectively). Our consolidated debt at December 31, 2011 had a weighted average term to maturity of approximately 5.8 years.

        Certain of our debt and preferred equity investments, with a face amount net of discount, of approximately $341.1 million, are variable rate investments which mitigate our exposure to interest rate changes on our unhedged variable rate debt at December 31, 2011.

Mortgage Financing

        As of December 31, 2011, our total mortgage debt (excluding our share of joint venture debt of approximately $1.8 billion) consisted of approximately $3.4 billion of fixed rate debt, including hedged variable rate debt, with an effective weighted average interest rate of approximately 5.77% and approximately $942.5 million of variable rate debt with an effective weighted average interest rate of approximately 3.02%.

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Corporate Indebtedness

2011 Revolving Credit Facility

        In November 2011, we entered into a $1.5 billion revolving credit facility, or the 2011 revolving credit facility. The 2011 revolving credit facility bears interest at a spread over LIBOR ranging from 100 basis points to 185 basis points, based on the credit rating assigned to the senior unsecured long term indebtedness of ROP. At December 31, 2011, the applicable spread was 150 basis points. The 2011 revolving credit facility matures in November 2015 and has a one-year as-of-right extension option, subject to certain conditions and the payment of an extension fee of 20 basis points. We also have an option, subject to customary conditions, without the consent of existing lenders, to increase the capacity under the 2011 revolving credit facility to $1.75 billion at any time prior to the maturity date. We are required to pay quarterly in arrears a 17.5 to 45 basis point facility fee on the total commitments under the 2011 revolving credit facility, which fee is based on the credit rating assigned to the senior unsecured long term indebtedness of ROP. As of December 31, 2011, the facility fee was 35 basis points. At December 31, 2011, we had approximately $350.0 million of borrowings and outstanding letters of credit totaling approximately $99.3 million outstanding under the 2011 revolving credit facility, with undrawn capacity of approximately $1.1 billion. See Restrictive Covenants below.

        The Company, ROP and the Operating Partnership are all borrowers jointly and severally obligated under the 2011 revolving credit facility. No other subsidiary of ours is an obligor under the 2011 revolving credit facility.

2007 Revolving Credit Facility

        The 2011 revolving credit facility replaced our $1.5 billion revolving credit facility, or the 2007 revolving credit facility, which was terminated concurrently with the entering into the 2011 revolving credit facility. The 2007 revolving credit facility bore interest at a spread over the 30-day LIBOR ranging from 70 basis points to 110 basis points, based on our leverage ratio, and required a 12.5 to 20 basis point fee, also based on our leverage ratio, on the unused balance payable annually in arrears. The 2007 revolving credit facility included certain restrictions and covenants and, as of the time of the termination of the 2007 revolving credit facility and as of October 31, 2011, we were in compliance with all such restrictions and covenants.

Senior Unsecured Notes

        The following table sets forth our senior unsecured notes and other related disclosures by scheduled maturity date as of December 31, 2011 (in thousands):

Issuance	December 31, 2011 Unpaid Principal Balance		December 31, 2011 Accreted Balance		December 31, 2010 Accreted Balance		Coupon Rate(4)			Effective Rate			Term (in Years)		Maturity
January 22, 2004(1)(5)(7)	$	—	$	—	$	84,823		5.15	%		5.900	%		7		January 15, 2011
August 13, 2004(1)(5)		98,578		98,578		98,578		5.875	%		6.100	%		10		August 15, 2014
March 31, 2006(1)		275,000		274,804		274,764		6.00	%		6.200	%		10		March 31, 2016
March 16, 2010(8)		250,000		250,000		250,000		7.75	%		7.750	%		10		March 15, 2020
June 27, 2005(1)(2)(5)		657		657		657		4.00	%		4.000	%		20		June 15, 2025
March 26, 2007(3)(5)		120,157		119,423		123,171		3.00	%		5.460	%		20		March 30, 2027
October 12, 2010(6)		345,000		277,629		268,552		3.00	%		7.125	%		7		October 15, 2017
August 5, 2011(8)		250,000		249,565		—		5.00	%		5.000	%		7		August 15, 2018
	$	1,339,392	$	1,270,656	$	1,100,545

⁽¹⁾

Issued by ROP.

⁽²⁾

Exchangeable senior debentures which are currently callable at 100% of par. In addition, the debentures can be put to us, at the option of the holder at par plus accrued and unpaid interest, on June 15, 2015 and 2020 and upon the occurrence of certain change of control

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transactions. As a result of the acquisition of all outstanding shares of common stock of Reckson Associates Realty Corp., or the Reckson Merger, the adjusted exchange rate for the debentures is 7.7461 shares of our common stock per $1,000 of principal amount of debentures and the adjusted reference dividend for the debentures is $1.3491. During the year ended December 31, 2010, we repurchased approximately $115.4 million of these debentures, inclusive of debentures purchased in the tender offer discussed in Note (5) below, and realized a net loss on early extinguishment of debt of approximately $0.3 million. On the date of the Reckson Merger, $13.1 million was recorded in equity and was fully amortized as of June 30, 2010.

⁽³⁾

In March 2007, the operating partnership issued $750.0 million of these exchangeable notes. Interest on these notes is payable semi-annually on March 30 and September 30. The notes have an initial exchange rate representing an exchange price that was set at a 25.0% premium to the last reported sale price of our common stock on March 20, 2007, or $173.30. The initial exchange rate is subject to adjustment under certain circumstances. The notes are senior unsecured obligations of our Operating Partnership and are exchangeable upon the occurrence of specified events, and during the period beginning on the twenty-second scheduled trading day prior to the maturity date and ending on the second business day prior to the maturity date, into cash or a combination of cash and shares of our common stock, if any, at our option. The notes are redeemable, at our option, on and after April 15, 2012. We may be required to repurchase the notes on March 30, 2012, 2017 and 2022, and upon the occurrence of certain designated events. The net proceeds from the offering were approximately $736.0 million, after deducting estimated fees and expenses. The proceeds of the offering were used to repay certain of our existing indebtedness, make investments in additional properties, and make open market purchases of our common stock and for general corporate purposes. During the year ended December 31, 2010, we repurchased approximately $41.7 million of these bonds, inclusive of notes purchased in the tender offer discussed in Note (5) below, and realized a net loss on early extinguishment of debt of approximately $0.5 million. On the issuance date, $66.6 million was recorded in equity. As of December 31, 2011, approximately $0.7 million remained unamortized.

⁽⁴⁾

Interest on the senior unsecured notes is payable semi-annually with principal and unpaid interest due on the scheduled maturity dates.

⁽⁵⁾

In April 2010, we completed a cash tender offer and purchased $13.0 million of the outstanding 3.000% Exchangeable Senior Notes due 2027 issued by the operating partnership, and $13.2 million of the outstanding 4.000% Exchangeable Senior Debentures due 2025, $38.8 million of the 5.150% Notes due 2011 and $50.0 million of the 5.875% Notes due 2014 issued by Reckson.

⁽⁶⁾

In October 2010, the operating partnership issued $345.0 million of these exchangeable notes. Interest on these notes is payable semi-annually on April 15 and October 15. The notes have an initial exchange rate representing an exchange price that was set at a 30.0% premium to the last reported sale price of our common stock on October 6, 2010, or $85.81. The initial exchange rate is subject to adjustment under certain circumstances. The notes are senior unsecured obligations of our operating partnership and are exchangeable upon the occurrence of specified events, and during the period beginning on the twenty-second scheduled trading day prior to the maturity date and ending on the second business day prior to the maturity date, into cash or a combination of cash and shares of our common stock, if any, at our option. The notes are guaranteed by ROP. The net proceeds from the offering were approximately $336.5 million, after deducting fees and expenses. The proceeds of the offering were used to repay certain of our existing indebtedness, make investments in additional properties, and for general corporate purposes. On the issuance date, $78.3 million was recorded in equity. As of December 31, 2011, approximately $67.4 million remained unamortized.

⁽⁷⁾

In January 2011, the remaining outstanding $84.8 million of ROP's 5.15% unsecured notes were repaid at par on their maturity date.

⁽⁸⁾

Issued by us, the Operating Partnership and ROP, as co-obligors.

Junior Subordinate Deferrable Interest Debentures

        In June 2005, we issued $100.0 million of Trust Preferred Securities, which are reflected on the balance sheet as Junior Subordinate Deferrable Interest Debentures. The proceeds were used to repay our revolving credit facility. The $100.0 million of junior subordinate deferrable interest debentures have a 30-year term ending July 2035. They bear interest at a fixed rate of 5.61% for the first 10 years ending July 2015. Thereafter, the rate will float at three month LIBOR plus 1.25%. The securities are redeemable at par.

Restrictive Covenants

        The terms of the 2011 revolving credit facility and certain of our senior unsecured notes include certain restrictions and covenants which may limit, among other things, our ability to pay dividends (as discussed below), make certain types of investments, incur additional indebtedness, incur liens and enter into negative pledge agreements and the disposition of assets, and which require compliance with financial ratios including our minimum tangible net worth, a maximum ratio of total indebtedness to total asset value, a minimum ratio of EBITDA to fixed charges and a maximum ratio of unsecured indebtedness to unencumbered asset value. The dividend restriction referred to above provides that we will not during any time when we are in default, make distributions with respect to common stock or other equity interests, except to enable us to continue to qualify as

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a REIT for Federal Income Tax purposes. As of December 31, 2011 and 2010, we were in compliance with all such covenants.

Market Rate Risk

        We are exposed to changes in interest rates primarily from our floating rate borrowing arrangements. We use interest rate derivative instruments to manage exposure to interest rate changes. A hypothetical 100 basis point increase in interest rates along the entire interest rate curve for 2011 and 2010, would increase our annual interest cost by approximately $12.3 million and $11.0 million and would increase our share of joint venture annual interest cost by approximately $4.8 million and $6.7 million, respectively.

        We recognize all derivatives on the balance sheet at fair value. Derivatives that are not hedges must be adjusted to fair value through income. If a derivative is a hedge, depending on the nature of the hedge, changes in the fair value of the derivative will either be offset against the change in fair value of the hedged asset, liability, or firm commitment through earnings, or recognized in other comprehensive income until the hedged item is recognized in earnings. The ineffective portion of a derivative's change in fair value is recognized immediately in earnings.

        Approximately $4.8 billion of our long-term debt bore interest at fixed rates, and therefore the fair value of these instruments is affected by changes in the market interest rates. The interest rate on our variable rate debt and joint venture debt as of December 31, 2011 ranged from LIBOR plus 150 basis points to LIBOR plus 350 basis points.

Contractual Obligations

        Combined aggregate principal maturities of mortgages and other loans payable, our 2011 revolving credit facility, senior unsecured notes (net of discount), trust preferred securities, our share of joint venture debt, including as-of-right extension options, estimated interest expense (based on weighted average interest rates for the quarter), and our obligations under our capital lease and ground leases, as of December 31, 2011 are as follows (in thousands):

	2012		2013		2014		2015		2016		Thereafter		Total
Property Mortgages	$	52,443	$	568,649	$	647,776	$	270,382	$	556,400	$	2,278,190	$	4,373,840
Revolving Credit Facility		—		—		—		—		350,000		—		350,000
Trust Preferred Securities		—		—		—		—		—		100,000		100,000
Senior Unsecured Notes		119,423		—		98,578		657		274,804		777,194		1,270,656
Capital lease		1,555		1,555		1,555		1,592		1,707		42,351		50,315
Ground leases		33,429		33,429		33,429		33,429		33,533		615,450		782,699
Estimated interest expense		312,672		309,280		269,286		244,709		212,328		470,359		1,818,634
Joint venture debt		176,457		93,683		123,983		102,476		527,814		800,102		1,824,515
Total	$	695,979	$	1,006,596	$	1,174,607	$	653,245	$	1,956,586	$	5,083,646	$	10,570,659

Off-Balance Sheet Arrangements

        We have a number of off-balance sheet investments, including joint ventures and debt and preferred equity investments. These investments all have varying ownership structures. Substantially all of our joint venture arrangements are accounted for under the equity method of accounting as we have the ability to exercise significant influence, but not control over the operating and financial decisions of these joint venture arrangements. Our off-balance sheet arrangements are discussed in Note 5, "Debt and Preferred Equity Investments" and Note 6, "Investments in Unconsolidated Joint Ventures" in the accompanying consolidated financial statements. Additional information about the debt of our unconsolidated joint ventures is included in "Contractual Obligations" above.

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Capital Expenditures

        We estimate that for the year ending December 31, 2012, we expect to incur approximately $148.6 million of capital expenditures which are net of loan reserves, (including tenant improvements and leasing commissions) on existing wholly-owned properties, and our share of capital expenditures at our joint venture properties, net of loan reserves, will be approximately $44.1 million. We expect to fund these capital expenditures with operating cash flow, additional property level mortgage financings and cash on hand. Future property acquisitions may require substantial capital investments for refurbishment and leasing costs. We expect that these financing requirements will be met in a similar fashion. We believe that we will have sufficient resources to satisfy our capital needs during the next 12-month period. Thereafter, we expect our capital needs will be met through a combination of cash on hand, net cash provided by operations, borrowings, potential asset sales or additional equity or debt issuances.

Dividends

        We expect to pay dividends to our stockholders based on the distributions we receive from our operating partnership primarily from property revenues net of operating expenses or, if necessary, from working capital or borrowings.

        To maintain our qualification as a REIT, we must pay annual dividends to our stockholders of at least 90% of our REIT taxable income, determined before taking into consideration the dividends paid deduction and net capital gains. We intend to continue to pay regular quarterly dividends to our stockholders. Based on our current annual dividend rate of $1.00 per share, we would pay approximately $86.4 million in dividends to our common stockholders on an annual basis. Before we pay any dividend, whether for Federal income tax purposes or otherwise, which would only be paid out of available cash to the extent permitted under our unsecured revolving credit facility and senior unsecured notes, we must first meet both our operating requirements and scheduled debt service on our mortgages and loans payable.

Related Party Transactions

Cleaning/ Security/ Messenger and Restoration Services

        Through Alliance Building Services, or Alliance, First Quality Maintenance, L.P., or First Quality, provides cleaning, extermination and related services, Classic Security LLC provides security services, Bright Star Couriers LLC provides messenger services, and Onyx Restoration Works provides restoration services with respect to certain properties owned by us. Alliance is partially owned by Gary Green, a son of Stephen L. Green, the chairman of our board of directors. In addition, First Quality has the non-exclusive opportunity to provide cleaning and related services to individual tenants at our properties on a basis separately negotiated with any tenant seeking such additional services. The Service Corporation has entered into an arrangement with Alliance whereby it will receive a profit participation above a certain threshold for services provided by Alliance to certain tenants at certain buildings above the base services specified in their lease agreements. Alliance paid the Service Corporation approximately $2.7 million, $2.2 million and $1.8 million for the years ended December 31, 2011, 2010 and 2009, respectively. We paid Alliance approximately $16.1 million, $14.2 million and $14.9 million for three years ended December 31, 2011, respectively, for these services (excluding services provided directly to tenants).

Leases

        Nancy Peck and Company leases 1,003 square feet of space at 420 Lexington Avenue under a lease that ends in August 2015. Nancy Peck and Company is owned by Nancy Peck, the wife of Stephen L. Green. The rent due under the lease is $35,516 per annum for year one increasing to $40,000 in year seven.

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Management Fees

        S.L. Green Management Corp., a consolidated entity, receives property management fees from an entity in which Stephen L. Green owns an interest. The aggregate amount of fees paid to S.L. Green Management Corp. from such entity was approximately $420,300 in 2011, $390,700 in 2010 and $351,700 in 2009.

Brokerage Services

        Cushman & Wakefield Sonnenblick-Goldman Company, LLC, or Sonnenblick, a nationally recognized real estate investment banking firm, provided mortgage brokerage services to us. Mr. Morton Holliday, the father of Mr. Marc Holliday, was a Managing Director of Sonnenblick at the time of the financings. In 2009, we paid approximately $428,000 to Sonnenblick in connection with the refinancing of 420 Lexington Avenue.

Gramercy Capital Corp.

        Our related party transactions with Gramercy are discussed in Note 13, "Related Party Transactions" in the accompanying financial statements.

Insurance

        We maintain "all-risk" property and rental value coverage (including coverage regarding the perils of flood, earthquake and terrorism) within two property insurance portfolios and liability insurance. The first property portfolio maintains a blanket limit of $750.0 million per occurrence, including terrorism, for the majority of the New York City properties in our portfolio. This policy expires on December 31, 2012. The second portfolio maintains a limit of $600.0 million per occurrence, including terrorism, for some New York City properties and the majority of the Suburban properties. The second property policy expires on December 31, 2012. Additional coverage may be purchased on a stand-alone basis for certain assets. We maintain liability policies which cover all our properties and provide limits of $201.0 million per occurrence and in the aggregate per location. The liability policies expire on October 31, 2012.

        In October 2006, we formed a wholly-owned taxable REIT subsidiary, Belmont Insurance Company, or Belmont, to act as a captive insurance company and be one of the elements of our overall insurance program. Belmont was formed in an effort to, among other reasons, stabilize to some extent the fluctuations of insurance market conditions. Belmont is licensed in New York to write Terrorism, NBCR (nuclear, biological, chemical, and radiological), General Liability, Environmental Liability and D&O coverage.

•

Terrorism: Belmont acts as a direct property insurer with respect to a portion of our terrorism coverage for the New York City properties. Effective December 31, 2010, Belmont increased its terrorism coverage from $400 million to $650 million in a layer in excess of $100.0 million. In addition Belmont purchased reinsurance to reinsure the retained insurable risk not otherwise covered under Terrorism Risk Insurance Program Reauthorization and Extension Act of 2007, or TRIPRA, as detailed below.

•

NBCR: Belmont acts as a direct insurer of NBCR and since December 31, 2011, has provided coverage up to $750 million on the entire property portfolio for certified acts of terrorism above a program trigger of $100.0 million. Belmont is responsible for a small deductible and 15% of a loss, with the remaining 85% covered by the Federal government.

•

General Liability: For the period commencing October 31, 2010, Belmont insures a retention on the general liability insurance of $150,000 per occurrence and a $2.1 million annual aggregate stop loss limit. We have secured excess insurance to protect against catastrophic liability losses above the $150,000 retention. Prior policy years carried a higher per occurrence deductible and/or higher aggregate stop loss. Belmont has retained a third party administrator to manage all claims within the retention and we anticipate that direct management of liability claims will improve loss experience and ultimately lower the cost of liability insurance in future years. In addition, we have an umbrella liability policy of $200.0 million per occurrence and in the aggregate on a per location basis.

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•

Environmental Liability: Belmont insures a deductible of $975,000 per occurrence in excess of $25,000 on a $25 million per occurrence/$30 million aggregate environmental liability policy covering the entire portfolio.

        As long as we own Belmont, we are responsible for its liquidity and capital resources, and the accounts of Belmont are part of our consolidated financial statements. If we experience a loss and Belmont is required to pay under its insurance policy, we would ultimately record the loss to the extent of Belmont's required payment. Therefore, insurance coverage provided by Belmont should not be considered as the equivalent of third-party insurance, but rather as a modified form of self-insurance.

        The Terrorism Risk Insurance Act, or TRIA, which was enacted in November 2002, was renewed on December 31, 2007. Congress extended TRIA, now called TRIPRA (Terrorism Risk Insurance Program Reauthorization and Extension Act of 2007) until December 31, 2014. The law extends the federal Terrorism Insurance Program that requires insurance companies to offer terrorism coverage and provides for compensation for insured losses resulting from acts of certified terrorism, subject to the current program trigger of $100.0 million. Our debt instruments, consisting of mortgage loans secured by our properties (which are generally non-recourse to us), mezzanine loans, ground leases, our 2011 revolving credit facility and other corporate obligations, contain customary covenants requiring us to maintain insurance. Although we believe that we currently maintain sufficient insurance coverage to satisfy these obligations, there is no assurance that in the future we will be able to procure coverage at a reasonable cost. In such instances, there can be no assurance that the lenders or ground lessors under these instruments will not take the position that a total or partial exclusion from "all-risk" insurance coverage for losses due to terrorist acts is a breach of these debt and ground lease instruments allowing the lenders or ground lessors to declare an event of default and accelerate repayment of debt or recapture of ground lease positions. In addition, if lenders prevail in asserting that we are required to maintain full coverage for these risks, it could result in substantially higher insurance premiums.

        We have a 49.9% interest in the property at 100 Park Avenue, where we participate with Prudential, which carries a blanket policy of $500.0 million of "all-risk" property insurance, including terrorism coverage. We own One Madison Avenue, which is under a triple net lease with insurance provided by the tenant, Credit Suisse Securities (USA) LLC, or CS. We monitor the coverage provided by CS to make sure that our asset is adequately protected. We have a 50.6% interest in the property at 388 and 390 Greenwich Street, where we participate with SITQ, which is leased on a triple net basis to Citigroup, N.A., which provides insurance coverage directly. We monitor all triple net leases to ensure that tenants are providing adequate coverage. Other joint ventures may be covered under policies separate from our policies, at coverage limits which we deem to be adequate. We continually monitor these policies. Although we consider our insurance coverage to be appropriate, in the event of a major catastrophe, such as an act of terrorism, we may not have sufficient coverage to replace certain properties.

Funds from Operations

        Funds From Operations, or FFO, is a widely recognized measure of REIT performance. We compute FFO in accordance with standards established by the National Association of Real Estate Investment Trusts, or NAREIT, which may not be comparable to FFO reported by other REITs that do not compute FFO in accordance with the NAREIT definition, or that interpret the NAREIT definition differently than we do. The revised White Paper on FFO approved by the Board of Governors of NAREIT in April 2002, and subsequently amended, defines FFO as net income (loss) (computed in accordance with Generally Accepted Accounting Principles, or GAAP), excluding gains (or losses) from debt restructurings, sales of properties and real estate related impairment charges, plus real estate related depreciation and amortization and after adjustments for unconsolidated partnerships and joint ventures. We present FFO because we consider it an important supplemental measure of our operating performance and believe that it is frequently used by securities analysts, investors and other interested parties in the evaluation of REITs, particularly those that own and operate commercial office properties. Years prior to 2011 have been adjusted to reflect FFO under the 2011 amended definition.

        We also use FFO as one of several criteria to determine performance-based bonuses for members of our senior management. FFO is intended to exclude GAAP historical cost depreciation and amortization of real estate

61

and related assets, which assumes that the value of real estate assets diminishes ratably over time. Historically, however, real estate values have risen or fallen with market conditions. Because FFO excludes depreciation and amortization unique to real estate, gains and losses from property dispositions and extraordinary items, it provides a performance measure that, when compared year over year, reflects the impact to operations from trends in occupancy rates, rental rates, operating costs, interest costs, providing perspective not immediately apparent from net income. FFO does not represent cash generated from operating activities in accordance with GAAP and should not be considered as an alternative to net income (determined in accordance with GAAP), as an indication of our financial performance or to cash flow from operating activities (determined in accordance with GAAP) as a measure of our liquidity, nor is it indicative of funds available to fund our cash needs, including our ability to make cash distributions.

        FFO for the years ended December 31, 2011, 2010 and 2009 are as follows (in thousands):

	Year Ended December 31,
	2011			2010			2009
Net income attributable to SL Green common stockholders	$	617,232		$	270,826		$	37,669
Add:
Depreciation and amortization		277,345			225,193			220,396
Discontinued operations depreciation adjustments		676			5,326			6,857
Unconsolidated joint ventures depreciation and noncontrolling interest adjustments		31,179			32,163			39,964
Net income attributable to noncontrolling interests		29,712			18,581			14,121
Depreciable real estate reserves		5,789			2,750			—
(Gain) loss on investment in marketable securities		—			(397	)		396
Less:
Gain (loss) on sale of discontinued operations		46,085			35,485			(6,841	)
Equity in net gain on sale of joint venture property/ interest		2,918			128,922			6,691
Purchase price fair value adjustment		498,195			—			—
Depreciation on non-rental real estate assets		922			874			736
Funds from Operations	$	413,813		$	389,161		$	318,817
Cash flows provided by operating activities	$	312,860		$	321,058		$	275,211
Cash flows (used in) provided by investing activities	$	(739,597	)	$	18,815		$	(345,379	)
Cash flows used in financing activities	$	232,099		$	(350,758	)	$	(313,006	)

Inflation

        Substantially all of the office leases provide for separate real estate tax and operating expense escalations as well as operating expense recoveries based on increases in the Consumer Price Index or other measures such as porters' wage. In addition, many of the leases provide for fixed base rent increases. We believe that inflationary increases may be at least partially offset by the contractual rent increases and expense escalations described above.

Accounting Standards Updates

        The Accounting Standards Updates are discussed in Note 2, "Significant Accounting Policies-Accounting Standards Updates" in the accompanying consolidated financial statements.

Forward-Looking Information

        This report includes certain statements that may be deemed to be "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 and are intended to be covered by the safe harbor provisions thereof. All statements, other than statements of historical facts, included in this report that address activities, events or developments that we expect, believe or anticipate will or may occur in the future,

62

including such matters as future capital expenditures, dividends and acquisitions (including the amount and nature thereof), development trends of the real estate industry and the Manhattan, Brooklyn, Queens, Westchester County, Connecticut, Long Island and New Jersey office markets, business strategies, expansion and growth of our operations and other similar matters, are forward-looking statements. These forward-looking statements are based on certain assumptions and analyses made by us in light of our experience and our perception of historical trends, current conditions, expected future developments and other factors we believe are appropriate.

        Forward-looking statements are not guarantees of future performance and actual results or developments may differ materially,, and we caution you not to place undue reliance on such statements. Forward-looking statements are generally identifiable by the use of the words "may," "will," "should," "expect," "anticipate," "estimate," "believe," "intend," "project," "continue," or the negative of these words, or other similar words or terms.

        Forward-looking statements contained in this report are subject to a number of risks and uncertainties that may cause our actual results, performance or achievements to be materially different from future results, performance or achievements expressed or implied by forward-looking statements made by us. These risks and uncertainties include:

•

the effect of the credit crisis on general economic, business and financial conditions, and on the New York metropolitan real estate market in particular;

•

dependence upon certain geographic markets;

•

risks of real estate acquisitions, dispositions and developments, including the cost of construction delays and cost overruns;

•

risks relating to debt and preferred equity investments;

•

availability and creditworthiness of prospective tenants and borrowers;

•

bankruptcy or insolvency of a major tenant or a significant number of smaller tenants;

•

adverse changes in the real estate markets, including reduced demand for office space, increasing vacancy, and increasing availability of sublease space;

•

availability of capital (debt and equity);

•

unanticipated increases in financing and other costs, including a rise in interest rates;

•

our ability to comply with financial covenants in our debt instruments;

•

our ability to maintain our status as a REIT;

•

risks of investing through joint venture structures, including the fulfillment by our partners of their financial obligations;

•

the continuing threat of terrorist attacks, in particular in the New York Metropolitan area and on our tenants;

•

our ability to obtain adequate insurance coverage at a reasonable cost and the potential for losses in excess of our insurance coverage, including as a result of environmental contamination; and

•

legislative, regulatory and/or safety requirements adversely affecting REITs and the real estate business, including costs of compliance with the Americans with Disabilities Act, the Fair Housing Act and other similar laws and regulations.

        Other factors and risks to our business, many of which are beyond our control, are described in other sections of this report and in our other filings with the Securities and Exchange Commission. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of future events, new information or otherwise.

63

ITEM 7A.    QUANTITATIVE AND QUALITATIVE DISCLOSURE ABOUT MARKET RISK

        See Item 7, "Management's Discussion and Analysis of Financial Condition and Results of Operations—Market Rate Risk" for additional information regarding our exposure to interest rate fluctuations.

        The table below presents the principal cash flows based upon maturity dates of our debt obligations and debt and preferred equity investments and the related weighted-average interest rates by expected maturity dates, including as-of-right extension options, as of December 31, 2011 (in thousands):

			Long-Term Debt								Debt and Preferred Equity Investments(1)
Date	Fixed Rate		Average Interest Rate			Variable Rate		Average Interest Rate			Amount		Weighted Yield
2012	$	153,062		5.92	%	$	18,804		2.71	%	$	160,098		5.77	%
2013		337,796		5.94			230,853		2.72			10,650		19.93
2014		308,834		5.97			437,520		2.77			440,001		9.91
2015		263,422		5.99			7,617		1.81			45,000		10.53
2016		613,511		5.99			567,693		1.81			217,876		8.64
Thereafter		3,155,383		5.56			—		—			112,317		2.81
Total	$	4,832,008		5.56	%	$	1,262,487		2.58	%	$	985,942		8.28	%
Fair Value	$	5,192,000				$	1,223,000

⁽¹⁾

Our debt and preferred equity investments had an estimated fair value ranging between $838.1 million and $936.7 million at December 31, 2011.

        The table below presents the principal cash flows based upon maturity dates of our share of our joint venture debt obligations and the related weighted-average interest rates by expected maturity dates as of December 31, 2011 (in thousands):

	Long Term Debt
Date	Fixed Rate		Average Interest Rate			Variable Rate		Average Interest Rate
2012	$	13,398		4.75	%	$	163,059		2.94	%
2013		3,001		4.75			90,681		2.50
2014		107,983		4.72			16,000		2.16
2015		97,568		4.59			4,908		2.00
2016		398,303		4.16			129,511		2.08
Thereafter		724,304		2.78			75,799		2.03
Total	$	1,344,557		4.61	%	$	479,958		2.56	%
Fair Value	$	1,251,000				$	463,000

        The table below lists all of our derivative instruments, which are hedging variable rate debt, excluding joint ventures, and their related fair value as of December 31, 2011 (in thousands):

	Asset Hedged	Benchmark Rate	Notional Value		Strike Rate			Effective Date		Expiration Date		Fair Value
Interest Rate Cap	Mortgage	LIBOR		110,180		6.000	%		2/2011		2/2012		—
Interest Rate Cap	Mortgage	LIBOR		139,672		5.000	%		1/2011		1/2012		—
Interest Rate Swap	Revolving credit facility	LIBOR		30,000		2.295	%		7/2010		6/2016		(1,716	)
Interest Rate Cap	Mortgage	LIBOR		280,000		6.000	%		11/2011		11/2012		—
Currency Hedge	Mortgage receivable	GBP-USD		20,748		1.55185			9/2010		12/2012		(151	)
Total Consolidated Hedges												$	(1,867	)

        In addition to these derivative instruments, some of our joint venture loan agreements require the joint venture to purchase interest rate caps on its debt. All such interest rate caps had no value at December 31, 2011. We had also hedged certain floating rate debt at a joint venture. These hedges represented an obligation of approximately $35.4 million at December 31, 2011.

64

ITEM 8.    FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

Index to Financial Statements and Schedules

SL GREEN REALTY CORP.
Report of Independent Registered Public Accounting Firm	66
Consolidated Balance Sheets as of December 31, 2011 and 2010	67
Consolidated Statements of Income for the years ended December 31, 2011, 2010 and 2009	68
Consolidated Statements of Equity for the years ended December 31, 2011, 2010 and 2009	69
Consolidated Statements of Cash Flows for the years ended December 31, 2011, 2010 and 2009	70
Notes to Consolidated Financial Statements	71
Schedules
Schedule II-Valuation and Qualifying Accounts—years ended December 31, 2011, 2010 and 2009	126
Schedule III Real Estate and Accumulated Depreciation as of December 31, 2011	127
All other schedules are omitted because they are not required or the required information is shown in the financial statements or notes thereto.
The consolidated financial statements of Rock-Green, Inc. and 1515 Broadway Realty Corp.
Consolidated Financial Statements and Report of Ernst & Young LLP Independent Registered Public Accounting Firm for Rock-Green, Inc.	129
Consolidated Statements of Income for the period January 1, 2010 to April 30, 2010 (unaudited) and the year ended December 31, 2009	130
Consolidated Statements of Changes in Equity for the period January 1, 2010 to April 30, 2010 (unaudited) and the year ended December 31, 2009	131
Consolidated Statements of Cash Flows for the period January 1, 2010 to April 30, 2010 (unaudited) and the year ended December 31, 2009	132
Notes to the Consolidated Financial Statements	133
Consolidated Financial Statements and Report of Ernst & Young LLP Independent Registered Public Accounting Firm for 1515 Broadway Realty Corp.	139
Consolidated Balance Sheet as of December 31, 2010	140
Consolidated Statements of Income for the years ended December 31, 2010 and 2009	141
Consolidated Statements of Changes in Equity for the years ended December 31, 2010 and 2009	142
Consolidated Statements of Cash Flows for the years ended December 31, 2010 and 2009	143
Notes to the Consolidated Financial Statements	144

65

Report of Independent Registered Public Accounting Firm

To the Board of Directors and Shareholders of SL Green Realty Corp.:

        We have audited the accompanying consolidated balance sheets of SL Green Realty Corp. (the "Company") as of December 31, 2011 and 2010, and the related consolidated statements of income, equity and cash flows for each of the three years in the period ended December 31, 2011. Our audits also included the financial statement schedules listed in the Index at Item 15(a)(2). These financial statements and schedules are the responsibility of the Company's management. Our responsibility is to express an opinion on these financial statements and schedules based on our audits.

        We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

        In our opinion, the financial statements referred to above present fairly, in all material respects, the consolidated financial position of the Company at December 31, 2011 and 2010, and the consolidated results of their operations and their cash flows for each of the three years in the period ended December 31, 2011, in conformity with U.S. generally accepted accounting principles. Also, in our opinion, the related financial statement schedules, when considered in relation to the basic financial statements taken as a whole, presents fairly in all material respects the information set forth therein.

        We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States), the Company's internal control over financial reporting as of December 31, 2011, based on criteria established in Internal Control-Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission and our report dated February 28, 2012, expressed an unqualified opinion thereon.

/s/ Ernst & Young LLP

New York, New York
February 28, 2012

66

SL Green Realty Corp.

Consolidated Balance Sheets

(Amounts in thousands, except per share data)

	December 31, 2011			December 31, 2010
Assets
Commercial real estate properties, at cost:
Land and land interests	$	2,684,626		$	1,750,220
Building and improvements		7,147,527			5,840,701
Building leasehold and improvements		1,302,790			1,286,935
Property under capital lease		12,208			12,208
		11,147,151			8,890,064
Less: accumulated depreciation		(1,136,603	)		(916,293	)
		10,010,548			7,973,771
Assets held for sale		76,562			—
Cash and cash equivalents		138,192			332,830
Restricted cash		86,584			137,673
Investment in marketable securities		25,323			34,052
Tenant and other receivables, net of allowance of $16,772 and $12,981 in 2011 and 2010, respectively		32,107			27,054
Related party receivables		4,001			6,295
Deferred rents receivable, net of allowance of $29,156 and $30,834 in 2011 and 2010, respectively		281,974			201,317
Debt and preferred equity investments, net of discount of $24,996 and $42,937 and allowance of $50,175 and $61,361 in 2011 and 2010, respectively		985,942			963,772
Investments in unconsolidated joint ventures		893,933			631,570
Deferred costs, net		210,786			172,517
Other assets		737,900			819,443
Total assets	$	13,483,852		$	11,300,294
Liabilities
Mortgages and other loans payable	$	4,314,741		$	3,400,468
Revolving credit facility		350,000			650,000
Senior unsecured notes		1,270,656			1,100,545
Accrued interest payable and other liabilities		126,135			38,149
Accounts payable and accrued expenses		142,428			133,389
Deferred revenue/gains		357,193			307,678
Capitalized lease obligation		17,112			17,044
Deferred land leases payable		18,495			18,267
Dividend and distributions payable		28,398			14,182
Security deposits		46,367			38,690
Liabilities related to assets held for sale		61,988			—
Junior subordinate deferrable interest debentures held by trusts that issued trust preferred securities		100,000			100,000
Total liabilities		6,833,513			5,818,412
Commitments and contingencies		—			—
Noncontrolling interests in operating partnership		195,030			84,338
6.00% Series H Preferred Units, $0.01 par value, $25.00 liquidation preference, 80 issued and outstanding at December 31, 2011		2,000			—
Equity
SL Green stockholders equity:
Series C preferred stock, $0.01 par value, $25.00 liquidation preference, 11,700 issued and outstanding at December 31, 2011 and 2010, respectively		274,022			274,022
Series D preferred stock, $0.01 par value, $25.00 liquidation preference, 4,000 issued and outstanding at December 31, 2011 and 2010, respectively		96,321			96,321
Common stock, $0.01 par value, 160,000 shares authorized and 89,210 and 81,675 issued and outstanding at December 31, 2011 and 2010, respectively (including 3,427 and 3,369 shares at December 31, 2011 and 2010 held in Treasury, respectively)		892			817
Additional paid-in-capital		4,236,959			3,660,842
Treasury stock at cost		(308,708	)		(303,222	)
Accumulated other comprehensive loss		(28,445	)		(22,659	)
Retained earnings		1,704,506			1,172,963
Total SL Green stockholders' equity		5,975,547			4,879,084
Noncontrolling interests in other partnerships		477,762			518,460
Total equity		6,453,309			5,397,544
Total liabilities and equity	$	13,483,852		$	11,300,294

The accompanying notes are an integral part of these financial statements.

67

SL Green Realty Corp.

Consolidated Statements of Income

(Amounts in thousands, except per share data)

	Year Ended December 31,
	2011			2010			2009
Revenues
Rental revenue, net	$	961,935		$	782,530		$	746,579
Escalation and reimbursement		145,596			118,212			119,029
Investment and preferred equity income		120,418			147,926			65,608
Other income		35,479			35,718			47,145
Total revenues		1,263,428			1,084,386			978,361
Expenses
Operating expenses (including $16,126 (2011), $14,234 (2010) and $14,882 (2009) paid to affiliates)		263,709			224,693			209,272
Real estate taxes		174,454			145,830			136,636
Ground rent		32,919			31,191			31,826
Interest expense, net of interest income		285,917			230,648			232,655
Amortization of deferred financing costs		14,118			9,046			7,065
Depreciation and amortization		277,345			225,193			220,396
Loan loss and other investment reserves, net of recoveries		6,722			17,751			150,510
Transaction related costs		5,561			11,849			—
Marketing, general and administrative		80,103			75,946			73,992
Total expenses		1,140,848			972,147			1,062,352
Income (loss) from continuing operations before equity in net income of unconsolidated joint ventures, gains on sale, purchase price fair value adjustment, noncontrolling interests and discontinued operations		122,580			112,239			(83,991	)
Equity in net income from unconsolidated joint ventures		1,583			39,607			62,878
Equity in net gain on sale of interest in unconsolidated joint venture/ real estate		2,918			128,921			6,691
Purchase price fair value adjustment		498,195			—			—
Gain (loss) on sale of investment in marketable securities		4,866			490			(396	)
Depreciable real estate reserves		(5,789	)		(2,750	)		—
Gain (loss) on early extinguishment of debt		904			(1,900	)		86,006
Income from continuing operations		625,257			276,607			71,188
Net income from discontinued operations		5,780			7,064			7,318
Gain (loss) on sale of discontinued operations		46,085			35,485			(6,841	)
Net income		677,122			319,156			71,665
Net income attributable to noncontrolling interests in the operating partnership		(14,629	)		(4,574	)		(1,221	)
Net income attributable to noncontrolling interests in other partnerships		(15,083	)		(14,007	)		(12,900	)
Net income attributable to SL Green		647,410			300,575			57,544
Preferred stock dividends		(30,178	)		(29,749	)		(19,875	)
Net income attributable to SL Green common stockholders	$	617,232		$	270,826		$	37,669
Amounts attributable to SL Green common stockholders:
Income (loss) from continuing operations	$	563,718		$	102,208		$	30,724
Net income from discontinued operations		5,646			6,946			7,091
Gain (loss) on sale of discontinued operations		45,018			34,894			(6,630	)
Gain on sale of unconsolidated joint ventures/ real estate		2,850			126,778			6,484
Net income	$	617,232		$	270,826		$	37,669
Basic earnings per share:
Net income (loss) from continuing operations before gains on sale and discontinued operations	$	6.73		$	1.31		$	0.45
Net income from discontinued operations		0.07			0.09			0.10
Gain (loss) on sale of discontinued operations		0.54			0.45			(0.10	)
Equity in net gain on sale of interest in unconsolidated joint venture/ real estate		0.03			1.62			0.09
Net income attributable to SL Green common stockholders	$	7.37		$	3.47		$	0.54
Diluted earnings per share:
Net income (loss) from continuing operations before gains on sale and discontinued operations	$	6.70		$	1.30		$	0.45
Net income from discontinued operations		0.07			0.09			0.10
Gain (loss) on sale of discontinued operations		0.53			0.44			(0.10	)
Equity in net gain on sale of interest in unconsolidated joint venture/ real estate		0.03			1.62			0.09
Net income attributable to SL Green common stockholders	$	7.33		$	3.45		$	0.54
Basic weighted average common shares outstanding		83,762			78,101			69,735
Diluted weighted average common shares and common share equivalents outstanding		86,244			79,761			72,044

The accompanying notes are an integral part of these financial statements.

68

SL Green Realty Corp.

Consolidated Statements of Equity

(Amounts in thousands, except per share data)

	SL Green Realty Corp. Stockholders
					Common Stock
														Accumulated Other Comprehensive Income (Loss)
	Series C Preferred Stock		Series D Preferred Stock		Shares		Par Value		Additional Paid- In-Capital		Treasury Stock						Retained Earnings			Noncontrolling Interests			Total			Comprehensive Income
Balance at December 31, 2008	$	151,981	$	96,321		57,044	$	604	$	3,079,159	$	(302,705	)	$	(54,747	)	$	979,939		$	531,408		$	4,481,960
Comprehensive Income:
Net income																		57,544			12,900			70,444		$	70,444
Net unrealized gain on derivative instruments															20,359									20,359			20,359
SL Green's share of joint venture net unrealized loss on derivative instruments															(233	)								(233	)		(233	)
Unrealized gain on investments															1,083									1,083			1,083
Preferred dividends																		(19,875	)					(19,875	)
Redemption of units and DRIP proceeds						653		7		28,560														28,567
Reallocation of noncontrolling interest in the operating partnership																		(23,217	)					(23,217	)
Deferred compensation plan & stock award, net						246		2		581														583
Amortization of deferred compensation plan										30,040														30,040
Net proceeds from common stock offering						19,550		196		386,942														387,138
Proceeds from stock options exercised						22				619														619
Distributions to noncontrolling interests																					(19,617	)		(19,617	)
Cash distribution declared ($0.675 per common share none of which represented a return of capital for federal income tax purposes)																		(44,722	)					(44,722	)
Balance at December 31, 2009		151,981		96,321		77,515		809		3,525,901		(302,705	)		(33,538	)		949,669			524,691			4,913,129		$	91,653
Comprehensive Income:
Net income																		300,575			14,007			314,582		$	314,582
Net unrealized loss on derivative instruments															(3,039	)								(3,039	)		(3,039	)
SL Green's share of joint venture net unrealized gain on derivative instruments															571									571			571
Unrealized gain on marketable securities															13,347									13,347			13,347
Preferred dividends																		(29,749	)					(29,749	)
Redemption of units and DRIP proceeds						470		5		23,339														23,344
Reallocation of noncontrolling interest in the operating partnership																		(18,948	)					(18,948	)
Deferred compensation plan & stock award, net						212		2		535		(517	)											20
Amortization of deferred compensation plan										31,741														31,741
Deconsolidation of real estate investments																		3,011			(9,532	)		(6,521	)
Equity component of convertible notes										76,039														76,039
Net proceeds from preferred stock offering		122,041																						122,041
Proceeds from stock options exercised						110		1		3,287														3,288
Cash contributions from noncontrolling interests																					2,788			2,788
Cash distributions to noncontrolling interests																					(13,494	)		(13,494	)
Cash distribution declared ($0.40 per common share of which none represented a return of capital for federal income tax purposes)																		(31,595	)					(31,595	)
Balance at December 31, 2010		274,022		96,321		78,307		817		3,660,842		(303,222	)		(22,659	)		1,172,963			518,460			5,397,544		$	325,461
Comprehensive Income:
Net income																		647,410			15,083			662,493		$	662,493
Net unrealized loss on derivative instruments															(3,501	)								(3,501	)		(3,501	)
SL Green's share of joint venture net unrealized gain on derivative instruments															902									902			902
Unrealized loss on marketable securities															(3,187	)								(3,187	)		(3,187	)
Preferred dividends																		(30,178	)					(30,178	)
Redemption of units and DRIP proceeds						13				898														898
Reallocation of noncontrolling interest in the operating partnership																		(39,040	)					(39,040	)
Deferred compensation plan & stock award, net						262		3		696		(5,486	)											(4,787	)
Amortization of deferred compensation plan										33,252														33,252
Proceeds from issuance of common stock						6,957		70		531,236														531,306
Proceeds from stock options exercised						244		2		10,035														10,037
Consolidation of joint venture interest																					87,798			87,798
Cash distributions to noncontrolling interests																					(143,579	)		(143,579	)
Cash distribution declared ($0.55 per common share, none of which represented a return of capital for federal income tax purposes)																		(46,649	)					(46,649	)
Balance at December 31, 2011	$	274,022	$	96,321		85,783	$	892	$	4,236,959	$	(308,708	)	$	(28,445	)	$	1,704,506		$	477,762		$	6,453,309		$	656,707

The accompanying notes are an integral part of these financial statements.

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SL Green Realty Corp.

Consolidated Statements of Cash Flows

(Amounts in thousands, except per share data)

	Year Ended December 31,
	2011			2010			2009
Operating Activities
Net income	$	677,122		$	319,156		$	71,665
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		292,311			240,445			235,200
Equity in net income from unconsolidated joint ventures		(1,583	)		(39,607	)		(62,878	)
Distributions of cumulative earnings from unconsolidated joint ventures		11,185			27,472			40,677
Equity in net gain on sale of interest in unconsolidated joint venture interest/ real estate		(2,918	)		(128,921	)		(6,691	)
Purchase price fair value adjustment		(498,195	)		—			—
Depreciable real estate reserves		5,789			2,750			—
(Gain) loss on sale of discontinued operations		(46,085	)		(35,485	)		6,841
Gain on sale of debt securities		(19,840	)
Loan loss and other investment reserves, net of recoveries		6,722			17,751			150,510
(Gain) loss on investments in marketable securities		(4,866	)		(490	)		396
(Gain) loss on early extinguishment of debt		(904	)		1,900			(86,006	)
Deferred rents receivable		(87,230	)		(47,223	)		(26,267	)
Other non-cash adjustments		2,385			(749	)		(2,534	)
Changes in operating assets and liabilities:
Restricted cash—operations		(681	)		4,513			16,219
Tenant and other receivables		(4,720	)		271			11,026
Related party receivables		2,461			2,398			(894	)
Deferred lease costs		(38,412	)		(42,035	)		(21,202	)
Other assets		4,029			4,860			(28,863	)
Accounts payable, accrued expenses and other liabilities		10,704			(3,706	)		(14,761	)
Deferred revenue and land leases payable		5,586			(2,242	)		(7,227	)
Net cash provided by operating activities		312,860			321,058			275,211
Investing Activities
Acquisitions of real estate property		(446,756	)		(270,614	)		(16,059	)
Additions to land, buildings and improvements		(159,100	)		(108,145	)		(90,971	)
Escrowed cash—capital improvements/acquisition deposits		29,281			(40,215	)		(5,318	)
Investments in unconsolidated joint ventures		(109,920	)		(87,844	)		(107,716	)
Distributions in excess of cumulative earnings from unconsolidated joint ventures		112,359			52,920			38,846
Net proceeds from disposition of real estate/joint venture interest		160,548			623,121			27,946
Other investments		12,186			32,607			(47,719	)
Debt and preferred equity and other investments, net of repayments/participations		(338,195	)		(183,015	)		(144,388	)
Net cash (used in) provided by investing activities		(739,597	)		18,815			(345,379	)
Financing Activities
Proceeds from mortgages and other loans payable		826,000			168,360			192,399
Repayments of mortgages and other loans payable		(765,378	)		(149,832	)		(169,688	)
Proceeds from revolving credit facility and senior unsecured notes		1,901,068			670,992			30,433
Repayments of revolving credit facility and senior unsecured notes		(2,043,144	)		(1,046,626	)		(646,317	)
Proceeds from stock options exercised and DRIP issuance		10,211			14,535			619
Net proceeds from sale of common stock		516,168			—			387,138
Net proceeds from sale of preferred stock		—			122,041			—
Purchases of treasury stock		(5,486	)		—			—
Distributions to noncontrolling interests in other partnerships		(143,578	)		(13,489	)		(19,617	)
Contributions from noncontrolling interests in other partnerships		—			2,788			—
Redemption of noncontrolling interests in operating partnership		—			(13,012	)		—
Distributions to noncontrolling interests in operating partnership		(727	)		(511	)		(2,170	)
Dividends paid on common and preferred stock		(63,866	)		(58,984	)		(78,321	)
Other obligations related to mortgage loan participations		35,850			—			—
Deferred loan costs and capitalized lease obligation		(35,019	)		(47,020	)		(7,482	)
Net cash provided by (used in) financing activities		232,099			(350,758	)		(313,006	)
Net decrease in cash and cash equivalents		(194,638	)		(10,885	)		(383,174	)
Cash and cash equivalents at beginning of period		332,830			343,715			726,889
Cash and cash equivalents at end of period	$	138,192		$	332,830		$	343,715
Supplemental cash flow disclosures
Interest paid	$	275,106		$	222,904		$	257,393
Income taxes paid	$	138		$	1,041		$	818

        In December 2011, 2010 and 2009, the Company declared quarterly distributions per share of $0.25, $0.10 and $0.10, respectively. These distributions were paid in January 2012, 2011 and 2010, respectively.

The accompanying notes are an integral part of these financial statements.

70

SL Green Realty Corp.

Notes to Consolidated Financial Statements

December 31, 2011

1. Organization and Basis of Presentation

        SL Green Realty Corp., also referred to as the Company or SL Green, a Maryland corporation, and SL Green Operating Partnership, L.P., or the Operating Partnership, a Delaware limited partnership, were formed in June 1997 for the purpose of combining the commercial real estate business of S.L. Green Properties, Inc. and its affiliated partnerships and entities. The Operating Partnership received a contribution of interest in the real estate properties, as well as 95% of the economic interest in the management, leasing and construction companies which are referred to as the Service Corporation, a consolidated variable interest entity. All of the management, leasing and construction services with respect to the properties wholly-owned by us are conducted through SL Green Management LLC which is 100% owned by our Operating Partnership. The Company has qualified, and expects to qualify in the current fiscal year, as a real estate investment trust, or REIT, under the Internal Revenue Code of 1986, as amended, or the Code, and operates as a self-administered, self-managed REIT. A REIT is a legal entity that holds real estate interests and, through payments of dividends to stockholders, is permitted to reduce or avoid the payment of Federal income taxes at the corporate level. Unless the context requires otherwise, all references to the "Company," "we," "our" and "us" means the Company and all entities owned or controlled by the Company, including the Operating Partnership.

        Substantially all of our assets are held by, and our operations are conducted through, the Operating Partnership. The Company is the sole managing general partner of the Operating Partnership. As of December 31, 2011, noncontrolling investors held, in the aggregate, a 3.12% limited partnership interest in the Operating Partnership. We refer to this as the noncontrolling interests in the Operating Partnership. See Note 14.

        Reckson Operating Partnership, L.P., or ROP, is a subsidiary of our Operating Partnership.

        As of December 31, 2011, we owned the following interests in commercial office properties in the New York Metropolitan area, primarily in midtown Manhattan, a borough of New York City, or Manhattan. Our investments in the New York Metropolitan area also include investments in Brooklyn, Queens, Long Island, Westchester County, Connecticut and New Jersey, which are collectively known as the Suburban assets:

Location	Ownership	Number of Properties		Square Feet		Weighted Average Occupancy(1)
Manhattan	Consolidated properties		26		18,429,945		92.8	%
	Unconsolidated properties		7		6,191,673		91.6	%
Suburban	Consolidated properties		25		3,863,000		80.5	%
	Unconsolidated properties		6		2,941,700		93.8	%
			64		31,426,318		91.2	%

⁽¹⁾

The weighted average occupancy represents the total leased square feet divided by total available rentable square feet.

        We also owned investments in nine stand-alone retail properties encompassing approximately 349,282 square feet, seven development properties encompassing approximately 1,395,838 square feet and three land interests as of December 31, 2011. In addition, we manage three office properties owned by third parties and affiliated companies encompassing approximately 0.9 million rentable square feet.

Partnership Agreement

        In accordance with the partnership agreement of the Operating Partnership, or the operating partnership agreement, we allocate all distributions and profits and losses in proportion to the percentage ownership interests

71

SL Green Realty Corp.

Notes to Consolidated Financial Statements (Continued)

December 31, 2011

1. Organization and Basis of Presentation (Continued)

of the respective partners. As the managing general partner of the Operating Partnership, we are required to take such reasonable efforts, as determined by us in our sole discretion, to cause the Operating Partnership to distribute sufficient amounts to enable the payment of sufficient dividends by us to avoid any Federal income or excise tax at the Company level. Under the operating partnership agreement, each limited partner has the right to redeem units of limited partnership interests for cash, or if we so elect, shares of our common stock on a one-for-one basis.

2. Significant Accounting Policies

Principles of Consolidation

        The consolidated financial statements include our accounts and those of our subsidiaries, which are wholly-owned or controlled by us. Entities which we do not control through our voting interest and entities which are variable interest entities, but where we are not the primary beneficiary, are accounted for under the equity method or as debt and preferred equity investments. See Notes 5 and 6. All significant intercompany balances and transactions have been eliminated.

        The FASB amended the guidance for determining whether an entity is a variable interest entity, or VIE, and requires the performance of a qualitative rather than a quantitative analysis to determine the primary beneficiary of a VIE. Under this guidance, an entity would be required to consolidate a VIE if it has (i) the power to direct the activities that most significantly impact the entity's economic performance and (ii) the obligation to absorb losses of the VIE or the right to receive benefits from the VIE that could be significant to the VIE.

        A noncontrolling interest in a consolidated subsidiary is defined as the portion of the equity (net assets) in a subsidiary not attributable, directly or indirectly, to a parent. Noncontrolling interests are required to be presented as a separate component of equity in the consolidated balance sheet and modifies the presentation of net income by requiring earnings and other comprehensive income to be attributed to controlling and noncontrolling interests.

        We assess the accounting treatment for each joint venture and debt and preferred equity investment. This assessment includes a review of each joint venture or partnership limited liability company agreement to determine which party has what rights and whether those rights are protective or participating. For all VIE's, we review such agreements in order to determine which party has the power to direct the activities that most significantly impact the entity's economic performance. In situations where we or our partner approves, among other things, the annual budget, receives a detailed monthly reporting package from us, meets on a quarterly basis to review the results of the joint venture, reviews and approves the joint venture's tax return before filing, and approves all leases that cover more than a nominal amount of space relative to the total rentable space at each property, we do not consolidate the joint venture as we consider these to be substantive participation rights that result in shared power of the activities that most significantly impact the performance of our joint venture. Our joint venture agreements also contain certain protective rights such as the requirement of partner approval to sell, finance or refinance the property and the payment of capital expenditures and operating expenditures outside of the approved budget or operating plan.

Investment in Commercial Real Estate Properties

        Rental properties are stated at cost less accumulated depreciation and amortization. Costs directly related to the development or redevelopment of rental properties are capitalized. Ordinary repairs and maintenance are

72

SL Green Realty Corp.

Notes to Consolidated Financial Statements (Continued)

December 31, 2011

2. Significant Accounting Policies (Continued)

expensed as incurred; major replacements and betterments, which improve or extend the life of the asset, are capitalized and depreciated over their estimated useful lives.

        A property to be disposed of is reported at the lower of its carrying amount or its estimated fair value, less its cost to sell. Once an asset is held for sale, depreciation expense is no longer recorded and the historic results are reclassified as discontinued operations. See Note 4.

        Properties are depreciated using the straight-line method over the estimated useful lives of the assets. The estimated useful lives are as follows:

Category	Term
Building (fee ownership)	40 years
Building improvements	shorter of remaining life of the building or useful life
Building (leasehold interest)	lesser of 40 years or remaining term of the lease
Property under capital lease	remaining lease term
Furniture and fixtures	four to seven years
Tenant improvements	shorter of remaining term of the lease or useful life

        Depreciation expense (including amortization of the capital lease asset) amounted to approximately $254.5 million, $207.1 million and $205.5 million for the years ended December 31, 2011, 2010 and 2009, respectively.

        On a periodic basis, we assess whether there are any indicators that the value of our real estate properties may be impaired or that their carrying value may not be recoverable. A property's value is considered impaired if management's estimate of the aggregate future cash flows (undiscounted and without interest charges for consolidated properties) to be generated by the property are less than the carrying value of the property. To the extent impairment has occurred, the loss will be measured as the excess of the carrying amount of the property over the calculated fair value of the property. In addition, we assess our investments in unconsolidated joint ventures for recoverability, and if it is determined that a loss in value of the investment is other than temporary, we write down the investment to its fair value. We evaluate our equity investments for impairment based on the joint venture's projected discounted cash flows. During 2011, we recorded a $5.8 million impairment charge in connection with the expected sale of one of our equity investments. During 2010, we recorded a $2.8 million impairment charge on one of our equity investments. These charges are included in depreciable real estate reserves in the Consolidated Statements of Income. We do not believe that the value of any of our consolidated properties was impaired at December 31, 2011 and 2010, respectively.

        A variety of costs are incurred in the development and leasing of our properties. After determination is made to capitalize a cost, it is allocated to the specific component of a project that is benefited. Determination of when a development project is substantially complete and capitalization must cease involves a degree of judgment. The costs of land and building under development include specifically identifiable costs. The capitalized costs include pre-construction costs essential to the development of the property, development costs, construction costs, interest costs, real estate taxes, salaries and related costs and other costs incurred during the period of development. We consider a construction project as substantially completed and held available for occupancy upon the completion of tenant improvements, but no later than one year from cessation of major construction activity. We cease capitalization on the portions substantially completed and occupied or held available for occupancy, and capitalize only those costs associated with the portions under construction.

        Results of operations of properties acquired are included in the Consolidated Statements of Income from the date of acquisition.

73

SL Green Realty Corp.

Notes to Consolidated Financial Statements (Continued)

December 31, 2011

2. Significant Accounting Policies (Continued)

        On January 1, 2009, we adopted FASB guidance that requires the acquiring entity in a business combination to measure the assets acquired, liabilities assumed (including contingencies) and any noncontrolling interests at their fair values on the acquisition date. The guidance also requires that acquisition- related transaction costs be expensed as incurred, acquired research and development value be capitalized and acquisition-related restructuring costs be capitalized only if they meet certain criteria. Beginning January 1, 2009, we began expensing acquisition-related transaction costs as incurred. These costs are included in transaction related costs on our Consolidated Statements of Income.

        We allocate the purchase price of real estate to land and building and, if determined to be material, intangibles, such as the value of above-, below- and at-market leases and origination costs associated with the in-place leases. We depreciate the amount allocated to building and other intangible assets over their estimated useful lives, which generally range from three to 40 years and from one to 14 years, respectively. The values of the above- and below-market leases are amortized and recorded as either an increase (in the case of below-market leases) or a decrease (in the case of above-market leases) to rental income over the remaining term of the associated lease, which generally range from one to 14 years. The value associated with in-place leases are amortized over the expected term of the associated lease, which generally range from one to 14 years. If a tenant vacates its space prior to the contractual termination of the lease and no rental payments are being made on the lease, any unamortized balance of the related intangible will be written off. The tenant improvements and origination costs are amortized as an expense over the remaining life of the lease (or charged against earnings if the lease is terminated prior to its contractual expiration date). We assess fair value of the leases based on estimated cash flow projections that utilize appropriate discount and capitalization rates and available market information. Estimates of future cash flows are based on a number of factors including the historical operating results, known trends, and market/economic conditions that may affect the property. To the extent acquired leases contain fixed rate renewal options that are below market and determined to be material, we amortized such below market lease value into rental income over the renewal period.

        We recognized an increase of approximately $19.8 million, $22.7 million and $24.2 million in rental revenue for the years ended December 31, 2011, 2010 and 2009, respectively, for the amortization of aggregate below-market leases in excess of above-market leases and a reduction in lease origination costs, resulting from the allocation of the purchase price of the applicable properties. We recognized a reduction in interest expense for the amortization of the above-market rate mortgages assumed of approximately $5.9 million, $2.7 million and $2.7 million for the years ended December 31, 2011, 2010 and 2009, respectively.

        The following summarizes our identified intangible assets (acquired above-market leases and in-place leases) and intangible liabilities (acquired below-market leases) as of December 31, 2011 (in thousands):

	December 31, 2011			December 31, 2010
Identified intangible assets (included in other assets):
Gross amount	$	673,495		$	758,300
Accumulated amortization		(193,442	)		(133,737	)
Net	$	480,053		$	624,563
Identified intangible liabilities (included in deferred revenue):
Gross amount	$	622,029		$	508,339
Accumulated amortization		(290,893	)		(220,417	)
Net	$	331,136		$	287,922

74

SL Green Realty Corp.

Notes to Consolidated Financial Statements (Continued)

December 31, 2011

2. Significant Accounting Policies (Continued)

        The estimated annual amortization of acquired below-market leases, net of acquired above-market leases (a component of rental revenue), for each of the five succeeding years is as follows (in thousands):

2012	$	10,767
2013		9,787
2014		7,869
2015		6,404
2016		5,664

        The estimated annual amortization of all other identifiable assets (a component of depreciation and amortization expense) including tenant improvements for each of the five succeeding years is as follows (in thousands):

2012	$	11,818
2013		10,229
2014		7,507
2015		5,821
2016		4,204

Cash and Cash Equivalents

        We consider all highly liquid investments with maturity of three months or less when purchased to be cash equivalents.

Fair Value Measurements

        Fair value is a market-based measurement, not an entity-specific measurement, and should be determined based on the assumptions that market participants would use in pricing the asset or liability. As a basis for considering market participant assumptions in fair value measurements, FASB guidance establishes a fair value hierarchy that distinguishes between market participant assumptions based on market data obtained from sources independent of the reporting entity (observable inputs that are classified within levels one and two of the hierarchy) and the reporting entity's own assumptions about market participant assumptions (unobservable inputs classified within level three of the hierarchy).

        We determined the fair value of our current investments in marketable securities using level one, level two and level three inputs. Additionally, we determined the valuation allowance for loan losses based on level three inputs. See "Note 5—Debt and Preferred Equity Investments."

        The estimated fair values of tangible and intangible assets and liabilities recorded in connection with business combinations are based on level three inputs. We estimate fair values based on cash flow projections utilizing appropriate discount and/or capitalization rates and available market information.

        We determine impairment in real estate investments and debt and preferred equity investments, including intangibles, utilizing cash flow projections that apply estimated revenue and expense growth rates, discount rates and capitalization rates, which are classified as level three inputs.

75

SL Green Realty Corp.

Notes to Consolidated Financial Statements (Continued)

December 31, 2011

2. Significant Accounting Policies (Continued)

        We use the following methods and assumptions in estimating fair value disclosures for financial instruments.

•

Cash and cash equivalents:  The carrying amount of unrestricted cash and cash equivalents reported in our Consolidated Balance Sheets approximates fair value due to the short maturity of these instruments.

•

Debt and Preferred Equity Investments:  The fair value of debt and preferred equity investments is estimated by discounting the future cash flows using current interest rates at which similar loans with the same maturities would be made to borrowers with similar credit ratings. See Note 5 regarding valuation allowances for loan losses.

•

Mortgage and other loans payable and other debt:  The fair value of borrowings is estimated by discounting the future cash flows using current interest rates at which similar borrowings could be made by us.

        The methodologies used for valuing financial instruments have been categorized into three broad levels as follows:

        Level 1—Quoted prices in active markets for identical instruments.

        Level 2—Valuations based principally on other observable market parameters, including

•

Quoted prices in active markets for similar instruments,

•

Quoted prices in less active or inactive markets for identical or similar instruments,

•

Other observable inputs (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates), and

•

Market corroborated inputs (derived principally from or corroborated by observable market data).

        Level 3—Valuations based significantly on unobservable inputs.

•

Valuations based on third-party indications (broker quotes or counterparty quotes) which were, in turn, based significantly on unobservable inputs or were otherwise not supportable as Level 2 valuations.

•

Valuations based on internal models with significant unobservable inputs.

        These levels form a hierarchy. We follow this hierarchy for our financial instruments measured at fair value on a recurring and nonrecurring basis. The classifications are based on the lowest level of input that is significant to the fair value measurement.

Investment in Marketable Securities

        We invest in marketable securities. At the time of purchase, we are required to designate a security as held-to-maturity, available-for-sale, or trading depending on ability and intent. We do not have any securities designated as held-to-maturity or trading at this time. Securities available-for-sale are reported at fair value pursuant to ASC 820-10, with the net unrealized gains or losses reported as a component of accumulated other comprehensive loss. Unrealized losses that are determined to be other-than-temporary are recognized in earnings up to their credit component. Included in accumulated other comprehensive loss at December 31, 2011 and 2010 is approximately $6.9 million and $9.7 million, respectively, in net unrealized gains related to marketable securities.

76

SL Green Realty Corp.

Notes to Consolidated Financial Statements (Continued)

December 31, 2011

2. Significant Accounting Policies (Continued)

        During the years ended December 31, 2011 and 2010, we disposed of certain of our marketable securities for aggregate net proceeds of $6.2 million and $2.8 million and realized gains of $4.5 million and $1.9 million, respectively, which are included in gain (loss) on investment in marketable securities on the statements of income. During the years ended December 31, 2011 and 2010, we sold $22.5 million and $41.9 million of Level 3 securities and realized a gain of $0.4 million and a loss of $1.1 million, respectively, which are also included in gain (loss) on investment in marketable securities on the Consolidated Statements of Income.

        The basis on which the cost of the bonds and marketable securities sold was determined was based on the specific identification method.

        At December 31, 2011 and 2010 we held the following marketable securities (in thousands):

	December 31,
	2011		2010
Level 1—Equity marketable securities	$	8,065	$	12,357
Level 2—Commercial mortgage-backed securities		13,369		17,445
Level 3—Rake bonds		3,889		4,250
Total marketable securities available-for-sale	$	25,323	$	34,052

        The cost basis of the Level 3 securities was $3.9 million and $4.3 million at December 31, 2011 and 2010, respectively. The Level 3 securities mature at various times through 2014.

Investments in Unconsolidated Joint Ventures

        We account for our investments in unconsolidated joint ventures under the equity method of accounting in cases where we exercise significant influence over, but do not control, these entities and are not considered to be the primary beneficiary. We consolidate those joint ventures that we control or which are VIEs and where we are considered to be the primary beneficiary. In all these joint ventures, the rights of the joint venture partner are both protective as well as participating. Unless we are determined to be the primary beneficiary in a VIE, these participating rights preclude us from consolidating these non-VIE entities. These investments are recorded initially at cost, as investments in unconsolidated joint ventures, and subsequently adjusted for equity in net income (loss) and cash contributions and distributions. Any difference between the carrying amount of these investments on our balance sheet and the underlying equity in net assets is amortized as an adjustment to equity in net income (loss) of unconsolidated joint ventures over the lesser of the joint venture term or 10 years. Equity income (loss) from unconsolidated joint ventures is allocated based on our ownership or economic interest in each joint venture. When a capital event (as defined in each joint venture agreement) such as a refinancing occurs, if return thresholds are met, future equity income will be allocated at our increased economic interest. We recognize incentive income from unconsolidated real estate joint ventures as income to the extent it is earned and not subject to a clawback feature. Distributions we receive from unconsolidated real estate joint ventures in excess of our basis in the investment are recorded as offsets to our investment balance if we remain liable for future obligations of the joint venture or may otherwise be committed to provide future additional financial support. None of the joint venture debt is recourse to us, except for $200.0 million which we guarantee at one joint venture and performance guarantees under a master lease at another joint venture. See Note 6.

77

SL Green Realty Corp.

Notes to Consolidated Financial Statements (Continued)

December 31, 2011

2. Significant Accounting Policies (Continued)

Restricted Cash

        Restricted cash primarily consists of security deposits held on behalf of our tenants, interest reserves, as well as capital improvement and real estate tax escrows required under certain loan agreements.

Deferred Lease Costs

        Deferred lease costs consist of fees and direct costs incurred to initiate and renew operating leases and are amortized on a straight-line basis over the related lease term. Certain of our employees provide leasing services to the wholly-owned properties. A portion of their compensation, approximating $9.6 million, $8.6 million and $7.9 million for the years ended December 31, 2011, 2010 and 2009, respectively, was capitalized and is amortized over an estimated average lease term of seven years.

Deferred Financing Costs

        Deferred financing costs represent commitment fees, legal, title and other third party costs associated with obtaining commitments for financing which result in a closing of such financing. These costs are amortized over the terms of the respective agreements. Unamortized deferred financing costs are expensed when the associated debt is refinanced or repaid before maturity. Costs incurred in seeking financing transactions, which do not close, are expensed in the period in which it is determined that the financing will not close.

Revenue Recognition

        Rental revenue is recognized on a straight-line basis over the term of the lease. Rental revenue recognition commences when the tenant takes possession or controls the physical use of the leased space. In order for the tenant to take possession, the leased space must be substantially ready for its intended use. To determine whether the leased space is substantially ready for its intended use, management evaluates whether we are or the tenant is the owner of tenant improvements for accounting purposes. When management concludes that we are the owner of tenant improvements, rental revenue recognition begins when the tenant takes possession of the finished space, which is when such tenant improvements are substantially complete. In certain instances, when management concludes that we are not the owner (the tenant is the owner) of tenant improvements, rental revenue recognition begins when the tenant takes possession of or controls the space. When management concludes that we are the owner of tenant improvements for accounting purposes, management records the cost to construct the tenant improvements as a capital asset. In addition, management records the cost of certain tenant improvements paid for or reimbursed by tenants as capital assets when management concludes that we are the owner of such tenant improvements. For these tenant improvements, management records the amount funded or reimbursed by tenants as deferred revenue, which is amortized on a straight-line basis as additional rental revenue over the term of the related lease. When management concludes that the tenant is the owner of tenant improvements for accounting purposes, management records our contribution towards those improvements as a lease incentive, which is included in deferred leasing costs on our consolidated balance sheets and amortized as a reduction to rental revenue on a straight-line basis over the term of the lease. The excess of rents recognized over amounts contractually due pursuant to the underlying leases are included in deferred rents receivable on the accompanying balance sheets. We establish, on a current basis, an allowance for future potential tenant credit losses, which may occur against this account. The balance reflected on the balance sheet is net of such allowance.

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Notes to Consolidated Financial Statements (Continued)

December 31, 2011

2. Significant Accounting Policies (Continued)

        In addition to base rent, our tenants also generally will pay their pro rata share of increases in real estate taxes and operating expenses for the building over a base year. In some leases, in lieu of paying additional rent based upon increases in building operating expenses, the tenant will pay additional rent based upon increases in the wage rate paid to porters over the porters' wage rate in effect during a base year or increases in the consumer price index over the index value in effect during a base year. In addition, many of our leases contain fixed percentage increases over the base rent to cover escalations.

        Electricity is most often supplied by the landlord either on a sub-metered basis, or rent inclusion basis (i.e., a fixed fee is included in the rent for electricity, which amount may increase based upon increases in electricity rates or increases in electrical usage by the tenant). Base building services other than electricity (such as heat, air conditioning and freight elevator service during business hours, and base building cleaning) typically are provided at no additional cost, with the tenant paying additional rent only for services which exceed base building services or for services which are provided outside normal business hours.

        These escalations are based on actual expenses incurred in the prior calendar year. If the expenses in the current year are different from those in the prior year, then during the current year, the escalations will be adjusted to reflect the actual expenses for the current year.

        We record a gain on sale of real estate when title is conveyed to the buyer, subject to the buyer's financial commitment being sufficient to provide economic substance to the sale and we have no substantial economic involvement with the buyer.

        Interest income on debt and preferred equity investments is recognized over the life of the investment using the effective interest method and recognized on the accrual basis. Fees received in connection with loan commitments are deferred until the loan is funded and are then recognized over the term of the loan as an adjustment to yield. Anticipated exit fees, whose collection is expected, are also recognized over the term of the loan as an adjustment to yield. Fees on commitments that expire unused are recognized at expiration.

        Income recognition is generally suspended for debt and preferred equity investments at the earlier of the date at which payments become 90 days past due or when, in the opinion of management, a full recovery of income and principal becomes doubtful. Income recognition is resumed when the loan becomes contractually current and performance is demonstrated to be resumed. Interest is recorded as income on impaired loans only to the extent cash is received. Several of the debt and preferred equity investments provide for accrual of interest at specified rates, which differ from current payment terms. Interest is recognized on such loans at the accrual rate subject to management's determination that accrued interest and outstanding principal are ultimately collectible, based on the underlying collateral and operations of the borrower. If management cannot make this determination, interest income above the current pay rate is recognized only upon actual receipt.

        If we purchase a debt or preferred equity investment at a discount, intend to hold it until maturity and expect to recover the full value of the investment, we accrete the discount into income as an adjustment to yield over the term of the investment. If we purchase a debt or preferred equity investment at a discount with the intention of foreclosing on the collateral, we do not accrete the discount.

        Asset management fees are recognized on a straight-line basis over the term of the asset management agreement.

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SL Green Realty Corp.

Notes to Consolidated Financial Statements (Continued)

December 31, 2011

2. Significant Accounting Policies (Continued)

Allowance for Doubtful Accounts

        We maintain an allowance for doubtful accounts for estimated losses resulting from the inability of our tenants to make required payments. If the financial condition of a specific tenant were to deteriorate, resulting in an impairment of its ability to make payments, additional allowances may be required.

Reserve for Possible Credit Losses

        The expense for possible credit losses in connection with debt and preferred equity investments is the charge to earnings to increase the allowance for possible credit losses to the level that we estimate to be adequate, based on Level 3 data, considering delinquencies, loss experience and collateral quality. Other factors considered relate to geographic trends and product diversification, the size of the portfolio and current economic conditions. Based upon these factors, we establish the provision for possible credit losses on each individual investment. When it is probable that we will be unable to collect all amounts contractually due, the investment is considered impaired.

        Where impairment is indicated on an investment that is held to maturity, a valuation allowance is measured based upon the excess of the recorded investment amount over the net fair value of the collateral. Any deficiency between the carrying amount of an asset and the calculated value of the collateral is charged to expense. The write off of the reserve balance is called a charge off. We recorded approximately $10.9 million, $19.8 million and $38.4 million in loan loss reserves and charge offs during the years ended December 31, 2011, 2010 and 2009, respectively, on investments being held to maturity, and none, $1.0 million and $69.1 million against our held for sale investment during the years ended December 31, 2011, 2010 and 2009, respectively. We also recorded approximately $4.4 million and $3.7 million in recoveries during the years ended December 31, 2011 and 2010, respectively, in connection with the sale of investments.

        Debt and preferred equity investments held for sale are carried at the lower of cost or fair market value using available market information obtained through consultation with dealers or other originators of such investments as well as discounted cash flow models based on Level 3 data pursuant to ASC 820-10. As circumstances change, management may conclude not to sell an investment designated as held for sale. In such situations, the investment will be reclassified at its net carrying value to debt and preferred equity investments held to maturity. For these reclassified investments, the difference between the current carrying value and the expected cash to be collected at maturity will be accreted into income over the remaining term of the investment.

Rent Expense

        Rent expense is recognized on a straight-line basis over the initial term of the lease. The excess of the rent expense recognized over the amounts contractually due pursuant to the underlying lease is included in the deferred land lease payable in the accompanying balance sheets.

Income Taxes

        We are taxed as a REIT under Section 856(c) of the Code. As a REIT, we generally are not subject to Federal income tax. To maintain our qualification as a REIT, we must distribute at least 90% of our REIT taxable income to our stockholders and meet certain other requirements. If we fail to qualify as a REIT in any taxable year, we will be subject to Federal income tax on our taxable income at regular corporate rates. We may also be subject to certain state, local and franchise taxes. Under certain circumstances, Federal income and excise taxes may be due on our undistributed taxable income.

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SL Green Realty Corp.

Notes to Consolidated Financial Statements (Continued)

December 31, 2011

2. Significant Accounting Policies (Continued)

        Pursuant to amendments to the Code that became effective January 1, 2001, we have elected, and may in the future, elect to treat certain of our existing or newly created corporate subsidiaries as taxable REIT subsidiaries, or a TRS. In general, a TRS of ours may perform non-customary services for our tenants, hold assets that we cannot hold directly and generally may engage in any real estate or non-real estate related business. Our TRSs' generate income, resulting in Federal income tax liability for these entities. Our TRSs' recorded approximately none, $0.9 million and $1.0 million in Federal, state and local tax (benefit)/expense in 2011, 2010 and 2009 and made estimated tax payments of $0.1 million, $1.0 million and $0.8 million, respectively.

        We follow a two-step approach for evaluating uncertain tax positions. Recognition (step one) occurs when an enterprise concludes that a tax position, based solely on its technical merits, is more-likely-than-not to be sustained upon examination. Measurement (step two) determines the amount of benefit that is more-likely-than-not to be realized upon settlement. Derecognition of a tax position that was previously recognized would occur when a company subsequently determines that a tax position no longer meets the more-likely-than-not threshold of being sustained. The use of a valuation allowance as a substitute for derecognition of tax positions is prohibited.

Underwriting Commissions and Costs

        Underwriting commissions and costs incurred in connection with our stock offerings are reflected as a reduction of additional paid-in-capital.

Exchangeable Debt Instruments

        The initial proceeds from exchangeable debt that may be settled in cash, including partial cash settlements, must be bifurcated between a liability component and an equity component associated with the embedded conversion option. The objective of the accounting guidance is to require the liability and equity components of exchangeable debt to be separately accounted for in a manner such that the interest expense on the exchangeable debt is not recorded at the stated rate of interest but rather at an effective rate that reflects the issuer's conventional debt borrowing rate at the date of issuance. We calculate the liability component of exchangeable debt based on the present value of the contractual cash flows discounted at our comparable market conventional debt borrowing rate at the date of issuance. The difference between the principal amount and the fair value of the liability component is reported as a discount on the exchangeable debt that is accreted as additional interest expense from the issuance date through the contractual maturity date using the effective interest method. A portion of this additional interest expense may be capitalized to the development and redevelopment balances qualifying for interest capitalization each period. The liability component of the exchangeable debt is reported net of discounts on our consolidated balance sheets. We calculate the equity component of exchangeable debt based on the difference between the initial proceeds received from the issuance of the exchangeable debt and the fair value of the liability component at the issuance date. The equity component is included in additional paid-in-capital, net of issuance costs, on our consolidated balance sheets. We allocate issuance costs for exchangeable debt between the liability and the equity components based on their relative values.

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SL Green Realty Corp.

Notes to Consolidated Financial Statements (Continued)

December 31, 2011

2. Significant Accounting Policies (Continued)

Stock-Based Employee Compensation Plans

        We have a stock-based employee compensation plan, described more fully in Note 13.

        The Black-Scholes option-pricing model was developed for use in estimating the fair value of traded options, which have no vesting restrictions and are fully transferable. In addition, option valuation models require the input of highly subjective assumptions including the expected stock price volatility. Because our plan has characteristics significantly different from those of traded options and because changes in the subjective input assumptions can materially affect the fair value estimate, in our opinion, the existing models do not necessarily provide a reliable single measure of the fair value of our employee stock options.

        Compensation cost for stock options, if any, is recognized on a straight line basis over the vesting period of the award. Our policy is to grant options with an exercise price equal to the quoted closing market price of our stock on the grant date. Awards of stock or restricted stock are expensed as compensation over the benefit period based on the fair value of the stock on the grant date.

        For share-based awards with a performance or market measure, we recognize compensation cost over the requisite service period, using the accelerated attribution expense method. The requisite service period begins on the date our Compensation Committee authorizes the award and adopts any relevant performance measures. For programs with market measures, the total estimated compensation cost is based on the fair value of the award at the applicable measurement date estimated using a binomial model. For share-based awards for which there is no pre-established performance measure, we recognize compensation cost over the service vesting period, which represents the requisite service period, on a straight-line basis. In accordance with the provisions of our share-based incentive compensation plans, we accept the return of shares of our common stock, at the current quoted market price, from certain key employee to satisfy minimum statutory tax-withholding requirements related to shares that vested during the period.

        Awards can also be made in the form of a separate series of units of limited partnership interest in our Operating Partnership called long-term incentive plan (LTIP) units. LTIP units, which can be granted either as free-standing awards or in tandem with other awards under our stock incentive plan, are valued by reference to the value of our common stock at the time of grant, and are subject to such conditions and restrictions as our compensation committee may determine, including continued employment or service, computation of financial metrics and/or achievement of pre-established performance goals and objectives.

Derivative Instruments

        In the normal course of business, we use a variety of derivative instruments to manage, or hedge, interest rate risk. We require that hedging derivative instruments are effective in reducing the interest rate risk exposure that they are designated to hedge. This effectiveness is essential for qualifying for hedge accounting. Some derivative instruments are associated with an anticipated transaction. In those cases, hedge effectiveness criteria also require that it be probable that the underlying transaction occurs. Instruments that meet these hedging criteria are formally designated as hedges at the inception of the derivative contract.

        To determine the fair values of derivative instruments, we use a variety of methods and assumptions that are based on market conditions and risks existing at each balance sheet date. For the majority of financial instruments including most derivatives, long-term investments and long-term debt, standard market conventions and techniques such as discounted cash flow analysis, option pricing models, replacement cost, and termination cost are used to

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SL Green Realty Corp.

Notes to Consolidated Financial Statements (Continued)

December 31, 2011

2. Significant Accounting Policies (Continued)

determine fair value. All methods of assessing fair value result in a general approximation of value, and such value may never actually be realized.

        In the normal course of business, we are exposed to the effect of interest rate changes and limit these risks by following established risk management policies and procedures including the use of derivatives. To address exposure to interest rates, derivatives are used primarily to fix the rate on debt based on floating-rate indices and manage the cost of borrowing obligations.

        We use a variety of commonly used derivative products that are considered plain vanilla derivatives. These derivatives typically include interest rate swaps, caps, collars and floors. We expressly prohibit the use of unconventional derivative instruments and using derivative instruments for trading or speculative purposes. Further, we have a policy of only entering into contracts with major financial institutions based upon their credit ratings and other factors.

        We may employ swaps, forwards or purchased options to hedge qualifying forecasted transactions. Gains and losses related to these transactions are deferred and recognized in net income as interest expense in the same period or periods that the underlying transaction occurs, expires or is otherwise terminated.

        Hedges that are reported at fair value and presented on the balance sheet could be characterized as cash flow hedges or fair value hedges. Interest rate caps and collars are examples of cash flow hedges. Cash flow hedges address the risk associated with future cash flows of interest payments. For all hedges held by us and which were deemed to be fully effective in meeting the hedging objectives established by our corporate policy governing interest rate risk management, no net gains or losses were reported in earnings. The changes in fair value of hedge instruments are reflected in accumulated other comprehensive income. For derivative instruments not designated as hedging instruments, the gain or loss, resulting from the change in the estimated fair value of the derivative instruments, is recognized in current earnings during the period of change.

Earnings per Share

        We present both basic and diluted earnings per share, or EPS. Basic EPS excludes dilution and is computed by dividing net income attributable to common stockholders by the weighted average number of common shares outstanding during the period. Basic EPS includes participating securities, consisting of unvested restricted stock that receive nonforfeitable dividends similar to shares of common stock. Diluted EPS reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock, where such exercise or conversion would result in a lower EPS amount. This also includes units of limited partnership interest. The dilutive effect of the outstanding nonvested shares of common stock ("nonvested shares") and restricted stock units ("RSUs") that have not yet been granted but are contingently issuable under the share-based compensation programs is reflected in the weighted average diluted shares calculation by application of the treasury stock method at the beginning of the quarterly period in which all necessary conditions have been satisfied. The dilutive effect of stock options is reflected in the weighted average diluted outstanding shares calculation by application of the treasury stock method. There is no dilutive effect for the exchangeable senior debentures as the conversion premium will be paid in cash.

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SL Green Realty Corp.

Notes to Consolidated Financial Statements (Continued)

December 31, 2011

2. Significant Accounting Policies (Continued)

Use of Estimates

        The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates.

Concentrations of Credit Risk

        Financial instruments that potentially subject us to concentrations of credit risk consist primarily of cash investments, debt and preferred equity investments and accounts receivable. We place our cash investments in excess of insured amounts with high quality financial institutions. The collateral securing our debt and preferred equity investments is primarily located in the New York Metropolitan area. See Note 5. We perform ongoing credit evaluations of our tenants and require most tenants to provide security deposits or letters of credit. Though these security deposits and letters of credit are insufficient to meet the total value of a tenant's lease obligation, they are a measure of good faith and a source of funds to offset the economic costs associated with lost rent and the costs associated with re-tenanting the space. Although the properties in our real estate portfolio are primarily located in Manhattan, we also have properties located in Brooklyn, Queens, Long Island, Westchester County, Connecticut and New Jersey. The tenants located in our buildings operate in various industries. Other than one tenant who accounts for approximately 7.2% of our share of annualized cash rent, no other tenant in our portfolio accounted for more than 6.9% of our annualized cash rent, including our share of joint venture annualized rent, at December 31, 2011. Approximately 8%, 7%, 7% and 10% of our annualized cash rent for consolidated properties was attributable to 919 Third Avenue, 1185 Avenue of the Americas, One Madison Avenue and 1515 Broadway, respectively, for the year ended December 31, 2011. Approximately 10%, 9%, 7%, 7% and 6% of our annualized rent for consolidated properties was attributable to 919 Third Avenue, 1185 Avenue of the Americas, One Madison Avenue, 420 Lexington Avenue and 485 Lexington Avenue, respectively, for the year ended December 31, 2010. Approximately 10%, 9%, 8%, 8%, 6% and 6% of our annualized rent for consolidated properties was attributable to 919 Third Avenue, 1185 Avenue of the Americas, One Madison Avenue, 420 Lexington Avenue, 220 East 42^nd Street and 485 Lexington Avenue, respectively, for the year ended December 31, 2009. In addition, two debt and preferred equity investments accounted for more than 10.0% of the income earned on debt and preferred equity investments during 2011. As of December 31, 2011, approximately 75.0% of our workforce is covered by three collective bargaining agreements. Approximately 76.4% of our workforce which services substantially all of our properties is covered by a collective bargaining agreement which expires in 2015. See Note 15.

Reclassification

        Certain prior year balances have been reclassified to conform to our current year presentation primarily in order to eliminate discontinued operations from income from continuing operations.

Accounting Standards Updates

        In January 2010, the FASB issued updated guidance on fair value measurements and disclosures, which requires disclosure of details of significant asset or liability transfers in and out of Level 1 and Level 2 measurements within the fair value hierarchy and inclusion of gross purchases, sales, issuances, and settlements in the rollforward of assets and liabilities valued using Level 3 inputs within the fair value hierarchy. The guidance also clarifies and expands existing disclosure requirements related to the disaggregation of fair value disclosures

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SL Green Realty Corp.

Notes to Consolidated Financial Statements (Continued)

December 31, 2011

2. Significant Accounting Policies (Continued)

and inputs used in arriving at fair values for assets and liabilities using Level 2 and Level 3 inputs within the fair value hierarchy. These disclosure requirements were effective for interim and annual reporting periods beginning after December 15, 2009. Adoption of this guidance on January 1, 2010, excluding the Level 3 rollforward, resulted in additional disclosures in our consolidated financial statements. The gross presentation of the Level 3 rollforward is required for interim and annual reporting periods beginning after December 15, 2010. Adoption of this guidance did not have a material impact on our consolidated financial statements.

        In July 2010, the FASB issued updated guidance on disclosures about the credit quality of financing receivables and the allowance for credit losses which will require a greater level of information disclosed about the credit quality of loans and allowance for loan losses, as well as additional information related to credit quality indicators, past due information, and information related to loans modified in trouble debt restructuring. The guidance related to disclosures of financing receivables as of the end of a reporting period is required to be adopted for interim and annual reporting periods ending on or after December 15, 2010. The financing receivables disclosures related to the activity that occurs during a reporting period are required to be adopted for interim and annual reporting periods beginning on or after December 15, 2010. Adoption of the remaining guidance resulted in additional disclosures in our consolidated financial statements.

        In December 2010, the FASB issued guidance on the disclosure of supplementary pro forma information for business combinations. Effective for periods beginning after December 15, 2010, the guidance specifies that if a public entity enters into business combinations that are material on an individual or aggregate basis and presents comparative financial statements, the entity must present pro forma revenue and earnings of the combined entity as though the business combination(s) that occurred during the current year had occurred as of the beginning of the comparable prior annual reporting period only. Adoption of this guidance did not have a material impact on our consolidated financial statements.

        In April 2011, the FASB issued guidance which clarifies when creditors should classify loan modifications as troubled debt restructurings and provides examples and factors to be considered. Loan modifications which are considered troubled debt restructurings could result in additional disclosure requirements and could impact the related provision for loan losses. This guidance is effective for the first interim or annual period beginning after June 15, 2011, with retrospective application to the beginning of the year. Adoption of this guidance did not have a material impact on our consolidated financial statements. The adoption of this guidance will impact how we account for loan modifications, and may result in an increase in the loan modifications we classify as troubled debt restructurings.

        In May 2011, the FASB issued updated guidance on fair value measurement which amends U.S. GAAP to conform to IFRS measurement and disclosure requirements. The amendments change the wording used to describe the requirements in U.S. GAAP for measuring fair value, changes certain fair value measurement principles and enhances disclosure requirements. This guidance is effective as of the first quarter of 2012, applied prospectively, and its adoption is not expected to have a material effect on our consolidated financial statements.

        In June 2011, the FASB issued guidance to increase the prominence of other comprehensive income in financial statements. The standard gives businesses two options for presenting other comprehensive income (OCI), which until now has typically been included within the statement of shareholder's equity. An OCI statement can be included with the statement of income, and together the two will make a statement of total comprehensive income. Alternatively, businesses can have an OCI statement separate from the statement of income, but the two statements will have to appear consecutively within a financial report. These requirements related to the

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SL Green Realty Corp.

Notes to Consolidated Financial Statements (Continued)

December 31, 2011

2. Significant Accounting Policies (Continued)

presentation of OCI are effective for interim and annual reporting periods beginning after December 15, 2011. In December 2011, the FASB temporarily delayed those requirements that relate to the presentation of reclassification adjustments out of accumulated other comprehensive income. During the deferral period, the FASB plans to re-evaluate the requirement, with a final decision expected in 2012. Adoption of this guidance will not have a material impact on our consolidated financial statements.

        In September 2011, the FASB issued guidance that requires employers to provide additional qualitative and quantitative disclosures for multi-employer pension plans and multi-employer other post-retirement benefit plans. The guidance is effective for annual periods for fiscal years ending after December 15, 2011. See Note 15 for additional disclosure required by this guidance.

        In December 2011, the FASB issued guidance that concluded when a parent ceases to have a controlling financial interest in a subsidiary that is in substance real estate as a result of default on the subsidiary's nonrecourse debt, the reporting entity must apply the accounting guidance for sales of real estate to determine whether it should derecognize the in substance real estate. The reporting entity is precluded from derecognizing the real estate until legal ownership has been transferred to the lender to satisfy the debt. The guidance is effective for calendar year-end public and nonpublic companies in 2013 and is to be applied on a prospective basis. Early adoption of the guidance is permitted. Adoption of this guidance will not have a material impact on our consolidated financial statements.

3. Property Acquisitions

2011 Acquisitions

        In November 2011, we acquired all of the interests in 51 East 42nd Street, a 142,000 square-foot (unaudited) office building for approximately $80.0 million, inclusive of the issuance of $2.0 million, 6.0% Series H preferred operating partnership units. We are currently in the process of analyzing the fair value of the in-place leases; and, consequently, no value has yet been assigned to the leases. Therefore, the purchase price allocation is preliminary and subject to change.

        In November 2011 we, along with The Moinian Group, formed a joint venture to recapitalize 180 Maiden Lane, a fully-leased, 1.1 million-square-foot (unaudited) Class A office tower. The consideration for our 49.9 percent stake in the joint venture included $41.0 million in cash and operating partnership units valued at $31.7 million. In connection with the issuance of these operating partnership units, we recorded an $8.3 million fair value adjustment due to changes in our stock price. Simultaneous with the closing of the recapitalization, the joint venture refinanced the existing $344.2 million indebtedness with a five-year $280-million mortgage. We consolidate this joint venture due to the control we exert over leasing activities at the property. We are currently in the process of analyzing the fair value of the in-place leases; and, consequently, no value has yet been assigned to the leases. Therefore, the purchase price allocation is preliminary and subject to change. We consolidate this joint venture as it is a VIE and we have been designated as the primary beneficiary.

        In May 2011, we acquired a substantial ownership interest in the 205,000-square-foot (unaudited) office condominium at 110 East 42nd Street, along with control of the asset. We had previously provided a $16.0 million senior mezzanine loan as part of our sale of the condominium unit in 2007. The May 2011 transaction included a consensual modification of that loan. In conjunction with the transaction, we successfully restructured the in-place mortgage financing, which had previously been in default.

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SL Green Realty Corp.

Notes to Consolidated Financial Statements (Continued)

December 31, 2011

3. Property Acquisitions (Continued)

        The following summarizes our allocation of the purchase price of the assets acquired and liabilities assumed upon the assumption of control over 110 East 42nd Street (in thousands):

Land	$	34,000
Building		46,411
Above market lease value		823
Acquired in-place leases		5,396
Assets acquired		86,630
Below market lease value		2,326
Liabilities assumed		2,326
Purchase price allocation	$	84,304
Net consideration funded at closing	$	2,744
Debt assumed	$	65,000

        In April 2011, we acquired SITQ Immobilier, a subsidiary of Caisse de depot et placement du Quebec, or SITQ's, interest in 1515 Broadway, thereby consolidating full ownership of the 1,750,000 square-foot (unaudited) building. The transaction valued the consolidated interests at $1.23 billion. We acquired the interest subject to the $458.8 million mortgage encumbering the property. We recognized a purchase price fair value adjustment of $475.1 million upon the closing of this transaction. This property, which we initially acquired in May 2002, was previously accounted for as an investment in unconsolidated joint ventures.

        The following summarizes our allocation of the purchase price of the assets acquired and liabilities assumed upon the purchase of partnership interest in 1515 Broadway (in thousands):

Land	$	462,700
Building		707,938
Above market lease value		18,298
Acquired in-place leases		98,661
Other assets, net of other liabilities		27,127
Assets acquired		1,314,724
Fair value adjustment to mortgage note payable		(3,693	)
Below market lease value		84,417
Liabilities assumed		80,724
Purchase price allocation	$	1,234,000
Net consideration funded at closing	$	259,228

        In January 2011, we purchased City Investment Fund, or CIF's, 49.9% interest in 521 Fifth Avenue, thereby assuming full ownership of the 460,000 square-foot (unaudited) building. The transaction valued the consolidated interest at approximately $245.7 million, excluding $4.5 million of cash and other assets acquired. We acquired the interest subject to the $140.0 million mortgage encumbering the property. We recognized a purchase price fair

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SL Green Realty Corp.

Notes to Consolidated Financial Statements (Continued)

December 31, 2011

3. Property Acquisitions (Continued)

value adjustment of $13.8 million upon the closing of this transaction. In April 2011, we refinanced the property with a new $150.0 million 2-year mortgage which carries a floating rate of interest of 200 basis points over the 30-day LIBOR. In connection with that refinancing, we acquired the fee interest in the property for $15.0 million.

        The following summarizes our allocation of the purchase price of the assets acquired and liabilities assumed upon the purchase of 521 Fifth Avenue (in thousands):

Land	$	110,100
Building		146,686
Above market lease value		3,318
Acquired in-place leases		23,016
Assets acquired		283,120
Below market lease value		25,977
Liabilities assumed		25,977
Purchase price allocation	$	257,143
Net consideration funded at closing	$	70,000

2010 Acquisitions

        In January 2010, we became the sole owner of 100 Church Street, a 1.05 million square-foot (unaudited) office tower located in downtown Manhattan, following the successful foreclosure of the senior mezzanine loan at the property. Our initial investment totaled $40.9 million, which was comprised of a 50% interest in the senior mezzanine loan and two other mezzanine loans at 100 Church Street, which we acquired from Gramercy Capital Corp. (NYSE: GKK), or Gramercy, in the summer of 2007. At closing of the foreclosure, we funded an additional $15.0 million of capital into the project as part of our agreement with Wachovia Bank, N.A. to extend and restructure the existing financing. Gramercy declined to fund its share of this capital and instead transferred its interests in the investment to us at closing. The restructured $139.7 million mortgage carries an interest rate of 350 basis points over the 30-day LIBOR. The restructured mortgage matures in January 2013 and has a one-year extension option.

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SL Green Realty Corp.

Notes to Consolidated Financial Statements (Continued)

December 31, 2011

3. Property Acquisitions (Continued)

        The following summarizes our allocation of the purchase price of the assets acquired and liabilities assumed upon the completion of the foreclosure of 100 Church Street (in thousands):

Land	$	32,494
Building		86,806
Acquired above-market leases		118
Acquired in-place leases		17,380
Restricted cash		53,735
Assets acquired		190,533
Mortgage note payable		139,672
Acquired below-market leases		8,025
Other liabilities, net of other assets		1,674
Liabilities assumed		149,371
Net assets acquired	$	41,162

        In August 2010, we acquired 125 Park Avenue, a Manhattan office tower, for $330 million. In connection with the acquisition, we assumed $146.25 million of in-place financing. The 5.748% interest-only loan matures in October 2014.

        The following summarizes our allocation of the purchase price of the assets acquired and liabilities assumed upon the closing of 125 Park Avenue (in thousands):

Land	$	120,900
Building		201,726
Acquired above-market leases		11,282
Acquired in-place leases		28,828
Assets acquired		362,736
Mortgage note payable at fair value		158,397
Acquired below-market leases		20,589
Liabilities assumed		178,986
Net assets acquired	$	183,750

        In December 2010, we completed the acquisition of various investments from Gramercy. This acquisition included (1) the remaining 45% interest in the leased fee at 885 Third Avenue for approximately $39.3 million plus assumed mortgage debt of approximately $120.4 million, (2) the remaining 45% interest in the leased fee at 2 Herald Square for approximately $25.6 million plus assumed mortgage debt of approximately $86.1 million and, (3) the entire leased fee interest in 292 Madison Avenue for approximately $19.2 million plus assumed mortgage debt of approximately $59.1 million. These assets are all leased to third-party operators.

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December 31, 2011

3. Property Acquisitions (Continued)

        The following summarizes our allocation of the purchase price of the assets acquired and liabilities assumed upon the purchase of the abovementioned investments from Gramercy (in thousands):

Land	$	501,021
Above market lease value		23,178
Acquired in-place leases		217,312
Assets acquired		741,511
Mortgage notes payable		540,805
Other liabilities, net of other assets		2,091
Liabilities assumed		542,896
		198,615
Investments in unconsolidated joint ventures		(111,751	)
Net assets acquired	$	86,864

        In December 2010, we acquired two retail condominiums in Williamsburg, Brooklyn, for approximately $18.4 million. The retail condominiums are fully leased with rent commencement upon completion of the redevelopment work.

        The following summarizes our allocation of the purchase price of the assets acquired in connection with the purchase of the abovementioned property (in thousands):

Land	$	6,200
Building		10,158
Acquired above market and in-place leases		2,304
Assets acquired		18,662
Below market lease value		277
Liabilities assumed		277
Purchase price allocation	$	18,385

2009 Acquisitions

        During 2009, we acquired the sub-leasehold positions at 420 Lexington Avenue for an aggregate purchase price of approximately $15.9 million.

Pro Forma

        The following table (in millions, except per share amounts) summarizes, on an unaudited pro forma basis, our combined results of operations for the years ended December 31, 2011 and 2010 as though the acquisitions of the 49.9% interest in 521 Fifth Avenue (January 2011) and the acquisition of the 45% interest in 1515 Broadway (April 2011) were completed on January 1, 2010. The supplemental pro forma operating data is not necessarily indicative of what the actual results of operations would have been assuming the transactions had been completed as set forth above, nor do they purport to represent our results of operations for future periods. In addition, the

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Notes to Consolidated Financial Statements (Continued)

December 31, 2011

3. Property Acquisitions (Continued)

following supplemental pro forma operating data does not present the sale of assets through December 31, 2011. We accounted for the acquisition of assets utilizing the purchase method of accounting.

	December 31, 2011		December 31, 2010
Actual revenues since acquisition	$	106.9	$	—
Actual net income since acquisition	$	21.5	$	—
Pro forma revenues	$	1,292.1	$	1,210.0
Pro forma operating income	$	129.0	$	135.4
Pro forma earnings per common share-basic	$	7.41	$	3.66
Pro forma earnings per common share and common share equivalents-diluted	$	7.37	$	3.65
Pro forma common shares-basic		83,762		78,101
Pro forma common share and common share equivalents-diluted		86,244		79,761

4. Property Dispositions and Assets Held for Sale

        In May 2011, we sold our property located at 28 West 44^th Street for $161.0 million. The property is approximately 359,000 square feet (unaudited). We recognized a gain of $46.1 million on the sale which is net of a $2.5 million employee compensation award, accrued in connection with the realization of this investment gain as a bonus to certain employees that were instrumental in realizing the gain on this sale.

        In October 2011, we entered into an agreement to sell the leased fee interest at 292 Madison Avenue for $85 million. The transaction is subject to certain closing conditions, including the lender's approval of the transfer of ownership. There can be no assurance as to when the conditions precedent contemplated in the sale agreement will be fulfilled, or that the transaction will be consummated.

        In September 2010, we sold the property located at 19 West 44^th Street in Manhattan for $123.2 million. The property is approximately 292,000 square feet (unaudited). We recognized a gain on the sale of approximately $35.5 million which is net of a $0.5 million employee compensation award, accrued in connection with the realization of this investment gain as a bonus to certain employees that were instrumental in realizing the gain on this sale.

        In January 2009, we, along with our joint venture partner, Gramercy, sold 100% of our interests in 55 Corporate Drive, New Jersey for $230.0 million. The property is approximately 670,000 square feet (unaudited). We recognized a gain of approximately $4.6 million in connection with the sale of our 50% interest in the joint venture, which is net of a $2.0 million employee compensation award, accrued in connection with the realization of this investment gain as a bonus to certain employees that were instrumental in realizing the gain on this sale.

        In August 2009, we sold the property located at 399 Knollwood Road, Westchester, for $20.7 million. The property is approximately 145,000 square feet (unaudited) and is encumbered by an $18.5 million mortgage. We recognized a loss on the sale of approximately $11.4 million.

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Notes to Consolidated Financial Statements (Continued)

December 31, 2011

4. Property Dispositions and Assets Held for Sale (Continued)

        Discontinued operations included the results of operations of real estate assets under contract or sold prior to December 31, 2011. This included 55 Corporate Drive, NJ, which was sold in January 2009, the membership interests in GKK Manager LLC which were sold in April 2009 (See Note 6), 399 Knollwood Road, Westchester which was sold in August 2009, 19 West 44^th Street, which was sold in September 2010, 28 West 44^th Street, which was sold in May 2011 and 292 Madison Avenue which was held for sale at December 31, 2011.

        The following table summarizes income from discontinued operations for the years ended December 31, 2011, 2010 and 2009, respectively (in thousands).

	Year Ended December 31,
	2011		2010		2009
Revenues
Rental revenue	$	12,636	$	22,912	$	29,221
Escalation and reimbursement revenues		873		4,683		5,740
Other income		60		881		6,750
Total revenues		13,569		28,476		41,711
Operating expense		1,654		7,403		8,969
Real estate taxes		1,033		4,776		5,668
Interest expense, net of interest income		4,253		2,998		4,716
Amortization of deferred financing costs		172		883		883
Depreciation and amortization		676		5,326		6,858
Marketing, general and administrative and transaction related costs		1		26		7,299
Total expenses		7,789		21,412		34,393
Net income from discontinued operations	$	5,780	$	7,064	$	7,318

5. Debt and Preferred Equity Investments

        During the years ended December 31, 2011 and 2010, our debt and preferred equity investments (net of discounts) increased approximately $622.5 million and $520.7 million, respectively, due to originations, purchases, accretion of discounts and paid-in-kind interest. We recorded approximately $600.3 million and $342.5 million in repayments, participations, sales, foreclosures and loan loss reserves during those periods, respectively, which offset the increases in debt and preferred equity investments.

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Notes to Consolidated Financial Statements (Continued)

December 31, 2011

5. Debt and Preferred Equity Investments (Continued)

        As of December 31, 2011 and 2010, we held the following debt investments with an aggregate weighted average current yield of approximately 7.5% (in thousands):

Loan Type	December 31, 2011 Senior Financing		December 31, 2011 Amount Outstanding, Net of Discounts			December 31, 2010 Amount Outstanding, Net of Discounts			Initial Maturity Date
Other Loan(1)	$	15,000	$	3,500		$	3,500			September 2021
Mortgage/Mezzanine Loan(1)		205,000		64,973			60,407			February 2016
Mortgage/ Mezzanine Loan(1)		171,549		46,416			46,358			May 2016
Mezzanine Loan(1)		165,000		40,375			39,711			November 2016
Mezzanine Loan(1)(2)(3)(6)(7)		—		—			27,187			—
Mezzanine Loan(1)(7)(14)		—		—			15,697			—
Junior Participation(1)(4)(6)(7)		—		8,725			9,938			April 2008
Mortgage/Mezzanine Loan(1)(8)(18)		1,109,000		108,817			84,062			March 2017
Junior Participation(1)(6)		53,000		11,000			11,000			November 2012
Junior Participation(6)		61,250		10,875			10,875			June 2012
Junior Participation(6)		—		—			5,866			—
Junior Participation(5)(6)		—		—			47,484			—
Mortgage/ Mezzanine Loan(2)(9)		—		—			137,222			—
Junior Participation(11)		—		—			42,439			—
Junior Participation		—		—			9,200			—
Mezzanine Loan(1)(12)		—		—			202,136			—
Mezzanine Loan(1)(17)		75,000		7,650			15,000			July 2013
Mortgage(10)		—		86,339			86,339			June 2012
Mortgage(13)		28,500		3,000			26,000			February 2013
Mezzanine Loan(15)		796,693		8,392			13,536			August 2012
Mezzanine Loan(1)(16)		—		—			38,892			—
Mezzanine Loan(1)		177,000		17,112			—			May 2016
Junior Participation(1)		133,000		49,000			—			June 2016
Mezzanine Loan		170,000		60,000			—			August 2014
Mezzanine Loan(1)		55,000		35,000			—			July 2016
Mezzanine Loan(19)		81,000		34,940			—			October 2016
Mezzanine Loan		45,000		10,000			—			January 2015
Mezzanine Loan		467,000		30,747			—			July 2012
Other Loan		48,300		3,196			—			May 2012
Loan loss reserve(6)		—		(19,125	)		(40,461	)		—
	$	3,856,292	$	620,932		$	892,388

⁽¹⁾

This is a fixed rate loan.

⁽²⁾

The difference between the pay and accrual rates is included as an addition to the principal balance outstanding.

⁽³⁾

This loan was sold in February 2011. We realized $6.2 million of additional income upon the sale. A portion of this income is included in loan loss and other reserves, net of recoveries.

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Notes to Consolidated Financial Statements (Continued)

December 31, 2011

5. Debt and Preferred Equity Investments (Continued)

⁽⁴⁾

This loan is in default. The lender has begun foreclosure proceedings. Another participant holds a $12.2 million pari-pasu interest in this loan.

⁽⁵⁾

Gramercy was the borrower under this loan. We sold this loan, which consisted of mortgage and mezzanine financing, for $35.8 million, in May 2011. We realized $1.2 million of additional income upon the sale, which is included in loan loss and other reserves, net of recoveries.

⁽⁶⁾

Loan loss reserves are specifically allocated to investments. Our reserves reflect management's judgment of the probability and severity of losses based on Level 3 data. We cannot be certain that our judgment will prove to be correct or that reserves will be adequate over time to protect against potential future losses.

⁽⁷⁾

This loan is on non-accrual status.

⁽⁸⁾

Interest is added to the principal balance for this accrual only loan.

⁽⁹⁾

Gramercy held a pari passu interest in the mezzanine loan. This loan was repaid in March 2011.

⁽¹⁰⁾

We hold an 88% interest in the consolidated joint venture that acquired this loan. This investment is denominated in British Pounds.

⁽¹¹⁾

This loan was repaid in January 2011. We realized $1.3 million of additional income upon the sale. This income is included in preferred equity and investment income.

⁽¹²⁾

In March 2011, we contributed our debt investment with a carrying value of $286.6 million to a newly formed joint venture in which we hold a 50% interest. We realized $38.7 million of additional income upon the contribution. This income is included in preferred equity and investment income. The joint venture paid us approximately $111.3 million and also assumed $30 million of related floating rate financing which matures in June 2016 and carried a weighted average interest rate for the quarter of 1.16%. In May 2011, this joint venture took control of the underlying property as part of a recapitalization transaction. See Note 6.

⁽¹³⁾

In June 2011, we funded an additional $5.5 million and extended the maturity date of this loan to February 2013. In September 2011, we entered into a loan participation in the amount of $28.5 million on a $31.5 million mortgage. We have assigned our right as servicer to a third party. Due to our continued involvement with the loan, the portion that was participated out has been recorded in other assets and other liabilities in the accompanying consolidated balance sheet.

⁽¹⁴⁾

In May 2011, we acquired a substantial ownership interest in the 205,000-square-foot office condominium along with control of the asset. We provided a senior mezzanine loan as part of the sale of the condominium unit in 2007. The transaction included a consensual modification of that loan. See Note 3.

⁽¹⁵⁾

In connection with the extension of this loan, a portion of the mezzanine loan was converted to preferred equity. See note 6 to the next table.

⁽¹⁶⁾

In connection with a recapitalization of the investment, our mezzanine loan was converted to preferred equity. See note 7 to the next table.

⁽¹⁷⁾

In November 2011, we entered into a loan participation agreement in the amount of $7.4 million on a $15.0 million mortgage. Due to our continued involvement with the loan, the portion that was participated out has been recorded in other assets and other liabilities in the accompanying consolidated balance sheet.

⁽¹⁸⁾

The mezzanine loan is on non-accrual status.

⁽¹⁹⁾

As of December 31, 2011, we were committed to fund and additional $15.0 million in connection with this loan.

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SL Green Realty Corp.

Notes to Consolidated Financial Statements (Continued)

December 31, 2011

5. Debt and Preferred Equity Investments (Continued)

Preferred Equity Investments

        As of December 31, 2011 and 2010, we held the following preferred equity investments with an aggregate weighted average current yield of approximately 9.8% (in thousands):

Type	December 31, 2011 Senior Financing		December 31, 2011 Amount Outstanding, Net of Discounts			December 31, 2010 Amount Outstanding, Net of Discounts			Initial Mandatory Redemption
Preferred equity(1)(4)(5)(7)	$	480,000	$	141,980		$	45,912			July 2014
Preferred equity(3)(4)(6)		975,890		51,000			46,372			August 2012
Preferred equity(4)		926,260		203,080			—			July 2016
Loan loss reserve(2)		—		(31,050	)		(20,900	)		—
	$	2,382,150	$	365,010		$	71,384

⁽¹⁾

This is a fixed rate investment.

⁽²⁾

Loan loss reserves are specifically allocated to investments. Our reserves reflect management's judgment of the probability and severity of losses based on Level 3 data. We cannot be certain that our judgment will prove to be correct and that reserves will be adequate over time to protect against potential future losses.

⁽³⁾

This investment is on non-accrual status.

⁽⁴⁾

The difference between the pay and accrual rates is included as an addition to the principal balance outstanding.

⁽⁵⁾

This investment was classified as held for sale at June 30, 2009, but as held-to-maturity for all periods subsequent to June 30, 2009. The reserve previously taken against this loan is being accreted up to the face amount through the maturity date.

⁽⁶⁾

In connection with the extension of this loan, a portion of the mezzanine loan was converted to preferred equity. See note 15 to the prior table.

⁽⁷⁾

In connection with a recapitalization of the investment, our mezzanine loan was converted to preferred equity. We also made an additional $50.0 million preferred equity loan. See note 16 to the prior table.

        The following table is a rollforward of our total allowance for loan loss reserves at December 31, 2011, 2010 and 2009 related to our debt and preferred equity investments (in thousands):

	2011			2010			2009
Balance at beginning of year	$	61,361		$	93,844		$	98,916
Expensed		10,875			24,418			145,855
Recoveries		(4,370	)		(3,662	)		—
Charge-offs		(17,691	)		(53,239	)		(150,927	)
Balance at end of period	$	50,175		$	61,361		$	93,844

        At December 31, 2011, 2010 and 2009 all debt and preferred equity investments, other than as noted above, were performing in accordance with the terms of the loan agreements.

        We have determined that we have one portfolio segment of financing receivables at December 31, 2011 and 2010 comprising commercial real estate which is primarily recorded in debt and preferred equity investments. Included in other assets is an additional amount of financing receivables totaling approximately $108.7 million at December 31, 2011 and $78.7 million at December 31, 2010. The nonaccrual balance of financing receivables at

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Notes to Consolidated Financial Statements (Continued)

December 31, 2011

5. Debt and Preferred Equity Investments (Continued)

December 31, 2011 and 2010 was $102.6 million and $140.8 million, respectively. The recorded investment for financing receivables past due 90 days was $17.3 million associated with two financing receivables at December 31, 2011 and $9.9 million associated with one financing receivable at December 31, 2010. All financing receivables are individually evaluated for impairment.

        The following table presents impaired loans, which may include non-accrual loans, as of December 31, 2011 and 2010, respectively (in thousands):

	December 31, 2011						December 31, 2010
	Unpaid Principal Balance		Recorded Investment		Allowance Allocated		Unpaid Principal Balance		Recorded Investment		Allowance Allocated
With no related allowance recorded:
Commercial real estate	$	106,623	$	83,378	$	—	$	103,678	$	99,759	$	—
With an allowance recorded:
Commercial real estate		86,121		81,475		50,175		160,711		158,597		61,361
Total	$	192,744	$	164,853	$	50,175	$	264,389	$	258,356	$	61,361

        The following table presents the average recorded investment in impaired loans, which may include non-accrual loans and the related investment and preferred equity income recognized during the years ended December 31, 2011 and 2010, respectively (in thousands):

	Year Ended December 31,
	2011		2010
Average recorded investment in impaired loans	$	191,288	$	252,813
Investment and preferred equity income recognized		9,554		8,156

        On an ongoing basis, we monitor the credit quality of our financing receivables based on payment activity. We assess credit quality indicators based on the underlying collateral.

6. Investment in Unconsolidated Joint Ventures

        We have investments in several real estate joint ventures with various partners, including The City Investment Fund, or CIF, SITQ Immobilier, a subsidiary of Caisse de depot et placement du Quebec, or SITQ, Canada Pension Plan Investment Board, or CPPIB, a fund managed by JP Morgan Investment Management, or JP Morgan, Prudential Real Estate Investors, or Prudential, Onyx Equities, or Onyx, The Witkoff Group, or Witkoff, Credit Suisse Securities (USA) LLC, or Credit Suisse, Jeff Sutton, or Sutton, Harel Insurance and Finance, or Harel, Louis Cappelli, or Cappelli, The Moinian Group, or Moinian, Vornado Realty Trust (NYSE: VNO), or Vornado, as well as private investors. All the investments below are voting interest entities, except for 3 Columbus Circle and 180/182 Broadway which are VIEs in which we are not the primary beneficiary. Our net equity investment in these two VIEs was $161.9 million and $12.0 million at December 31, 2011 and 2010, respectively. As we do not control these joint ventures, we account for them under the equity method of accounting. We assess the accounting treatment for each joint venture on a stand-alone basis. This includes a review of each joint venture or partnership LLC agreement to determine which party has what rights and whether those rights are protective or participating. In situations where we or our partner are involved in some or all of the following: approving the annual budget, receiving a detailed monthly reporting package from us, meeting with us on a

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Notes to Consolidated Financial Statements (Continued)

December 31, 2011

6. Investment in Unconsolidated Joint Ventures (Continued)

quarterly basis to review the results of the joint venture, reviewing and approving the joint venture's tax return before filing, and approving all leases that cover more than a nominal amount of space relative to the total rentable space at each property, we do not consolidate the joint venture as we consider these to be substantive participation rights. Our joint venture agreements also contain certain protective rights such as the requirement of partner approval to sell, finance or refinance the property and the payment of capital expenditures and operating expenditures outside of the approved budget or operating plan.

        The table below provides general information on each of our joint ventures as of December 31, 2011 (in thousands):

Property	Partner	Ownership Interest			Economic Interest			Square Feet		Acquired		Acquisition Price(1)
100 Park Avenue	Prudential		49.90	%		49.90	%		834		02/00	$	95,800
379 West Broadway	Sutton		45.00	%		45.00	%		62		12/05	$	19,750
21 West 34th Street	Sutton		50.00	%		50.00	%		30		07/05	$	22,400
800 Third Avenue	Private Investors		42.95	%		42.95	%		526		12/06	$	285,000
One Court Square(10)	JP Morgan		30.00	%		30.00	%		1,402		01/07	$	533,500
1604-1610 Broadway	Onyx/Sutton		45.00	%		63.00	%		30		11/05	$	4,400
1745 Broadway	Witkoff/SITQ/Lehman Bros.		32.26	%		32.26	%		674		04/07	$	520,000
1 and 2 Jericho Plaza	Onyx/Credit Suisse		20.26	%		20.26	%		640		04/07	$	210,000
16 Court Street	CIF		35.00	%		35.00	%		318		07/07	$	107,500
The Meadows(2)	Onyx		50.00	%		50.00	%		582		09/07	$	111,500
388 and 390 Greenwich Street(3)	SITQ		50.60	%		50.60	%		2,600		12/07	$	1,575,000
27-29 West 34th Street	Sutton		50.00	%		50.00	%		41		01/06	$	30,000
717 Fifth Avenue	Sutton/Nakash		32.75	%		32.75	%		120		09/06	$	251,900
141 Fifth Avenue(4)	Sutton/Rapport		50.00	%		50.00	%		22		09/05	$	13,250
180/182 Broadway(4)(5)	Harel/Sutton		25.50	%		25.50	%		71		02/08	$	43,600
600 Lexington Avenue	CPPIB		55.00	%		55.00	%		304		05/10	$	193,000
11 West 34th Street(6)	Private Investor/Sutton		30.00	%		30.00	%		17		12/10	$	10,800
7 Renaissance	Cappelli		50.00	%		50.00	%		37		12/10	$	4,000
3 Columbus Circle(7)	Moinian		48.90	%		48.90	%		769		01/11	$	500,000
280 Park Avenue(8)	Vornado		50.00	%		50.00	%		1,237		03/11	$	400,000
1552-1560 Broadway(9)	Sutton		50.00	%		50.00	%		49		08/11	$	136,550
747 Madison Avenue	Harel/Sutton		33.33	%		33.33	%		10		09/11	$	66,250

⁽¹⁾

Represents the actual or implied purchase price for the joint venture.

⁽²⁾

We, along with Onyx, acquired the remaining 50% interest on a pro-rata basis in September 2009. We recorded a $2.8 million impairment charge in 2010, included in depreciable real estate reserves, against this joint venture investment.

⁽³⁾

The property is subject to a 13-year triple-net lease arrangement with a single tenant. The lease commenced in 2007.

⁽⁴⁾

The deconsolidation of these joint ventures in 2010 resulted in an adjustment to retained earnings of approximately $3.0 million and to the noncontrolling interests in other partnerships of approximately $9.5 million.

⁽⁵⁾

In December 2010, the Company's 180-182 Broadway joint venture with Jeff Sutton announced an agreement with Pace University to convey a long-term ground lease condominium interest to Pace University for 20 floors of student housing. The joint venture also admitted Harel, which contributed $28.1 million to the joint venture, for a 49 percent partnership interest. In August 2011, the joint venture sold the property located at 63 Nassau Street for $2.8 million.

⁽⁶⁾

In December 2010, the Company's $12.0 million first mortgage collateralized by 11 West 34^th Street was repaid at par, resulting in the Company's recognition of additional income of approximately $1.1 million. Simultaneous with the repayment, the joint venture was recapitalized with the Company having a 30 percent interest. The property is subject to a long-term net lease arrangement.

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Notes to Consolidated Financial Statements (Continued)

December 31, 2011

6. Investment in Unconsolidated Joint Ventures (Continued)

⁽⁷⁾

We issued 306,296 operating partnership units in connection with this investment. We have committed to fund an additional $47.5 million to the joint venture, of which $34.5 million has been funded as of December 31, 2011. This liability is recorded in accrued interest payable and other liabilities. In addition, we made a $125.0 million bridge loan to this joint venture which was bearing interest at a rate of 7.5%. This loan was repaid when the joint venture refinanced its debt in April 2011.

⁽⁸⁾

In March 2011, we contributed our debt investment with a carrying value of $286.6 million to a newly formed joint venture in which we hold a 50% interest. We realized $38.7 million of additional income upon the contribution. This income is included in preferred equity and investment income. The joint venture paid us approximately $111.3 million and also assumed $30.0 million of related floating rate financing which matures in June 2016. See Note 5. In May 2011, this joint venture took control of the underlying property as part of a recapitalization transaction which valued the investment at approximately $1.1 billion. We hold an effective 49.5% ownership interest in the joint venture.

⁽⁹⁾

In connection with this acquisition, the joint venture also acquired a long-term leasehold interest in the retail space and certain other spaces at 1560 Broadway, which is adjacent to 1552 Broadway. The purchase price relates only to the purchase of the 1552 Broadway interest which comprises 13,045 square feet.

⁽¹⁰⁾

This property is under contract for sale for $475.0 million. The transaction, which is subject to the assumption of the joint venture's debt, is expected to close during the first quarter of 2012.

        In November 2011, we acquired the remaining 50% interest in the joint venture which held an investment in a debt position on the property located at 450 West 33^rd Street. As we own 100% of this investment, we have reclassified it and recorded it as a debt investment. See Note 5.

        In August 2011, we sold our 10% interest in the joint venture that held 1551-1555 Broadway for approximately $9.7 million. We realized a gain of $4.0 million on the sale, which is net of a $2.5 million employee compensation award, accrued in connection with the realization of this investment gain as a bonus to certain employees that were instrumental in realizing the gain on this sale.

        In May 2010, Green Hill Acquisition LLC, our wholly owned subsidiary, sold its 45% beneficial interest in the property known as 1221 Avenue of the Americas, located in Manhattan, to a wholly owned subsidiary of CPPIB, for total consideration of $577.4 million, of which approximately $95.9 million represented payment for existing reserves and the assumption of our pro-rata share of in-place financing. The sale generated proceeds to us of approximately $500.9 million. We recognized a gain of approximately $126.8 million on the sale of our interest, which is net of a $4.5 million employee compensation award, accrued in connection with the realization of this investment gain as a bonus to certain employees that were instrumental in realizing the gain on this sale.

        In April 2009, we sold our remaining 50 percent partnership interest in 55 Corporate Drive, New Jersey (pad IV) to Mack-Cali Realty Corporation (NYSE: CLI). We received total proceeds of $4.5 million and recognized a gain on sale of approximately $4.0 million. In connection with this transaction, we also sold our interest in the Mack-Green joint venture to Mack-Cali for $500,000.

        In June 2009, we sold an equity interest in 1166 Avenue of the Americas for $5.0 million and recognized a loss of approximately $5.2 million on the sale.

        In November 2011, we, along with our joint venture partner, reached an agreement to sell One Court Square to a private investor group for approximately $475.0 million. The transaction includes $315.0 million of existing debt, which will be assumed by the purchaser. The transaction is subject to certain conditions, including the lender's approval of the transfer of ownership. There is no assurance that the conditions precedent contemplated in the sale agreement will be fulfilled or that the transaction will be consummated at such time or at all. We recorded a $5.8 million impairment charge, included in depreciable real estate reserves, in connection with the expected sale of this investment.

98

SL Green Realty Corp.

Notes to Consolidated Financial Statements (Continued)

December 31, 2011

6. Investment in Unconsolidated Joint Ventures (Continued)

        We generally finance our joint ventures with non-recourse debt. However, in certain cases we have provided guarantees or master lease of tenant space. These guarantees and master leases terminate upon the satisfaction of specified circumstances or repayment of the underlying loans. The first mortgage notes and other loans payable collateralized by the respective joint venture properties and assignment of leases at December 31, 2011 and 2010, respectively, are as follows (in thousands):

Property	Maturity Date		Interest Rate(1)			December 31, 2011		December 31, 2010
100 Park Avenue		09/2014		6.64	%	$	214,625	$	204,946
21 West 34th Street		12/2016		5.76	%		100,000		100,000
800 Third Avenue		08/2017		6.00	%		20,910		20,910
One Court Square		09/2015		4.91	%		315,000		315,000
1604-1610 Broadway(2)		04/2012		5.66	%		27,000		27,000
388 and 390 Greenwich Street(3)		12/2017		5.19	%		1,106,757		1,106,758
1745 Broadway		01/2017		5.68	%		340,000		340,000
141 Fifth Avenue		06/2017		5.70	%		25,000		25,000
1 and 2 Jericho Plaza		05/2017		5.65	%		163,750		163,750
11 West 34th Street		01/2016		4.82	%		17,761		18,000
280 Park Avenue		06/2016		6.57	%		710,000		—
Total fixed rate debt						$	3,040,803	$	2,321,364
1515 Broadway(4)		—		—			—		462,896
The Meadows(5)		09/2012		1.63	%		84,698		87,034
388 and 390 Greenwich Street(3)		12/2017		1.43	%		31,622		31,622
16 Court Street		10/2013		2.75	%		85,728		86,844
27-29 West 34th Street(11)		05/2012		1.90	%		53,900		54,375
1551-1555 Broadway(6)		—		—			—		128,600
521 Fifth Avenue(7)		—		—			—		140,000
717 Fifth Avenue(8)		09/2012		5.25	%		245,000		245,000
379 West Broadway(11)		07/2012		1.94	%		20,991		20,991
600 Lexington Avenue		10/2017		2.38	%		125,000		125,000
180/182 Broadway(9)		12/2013		3.00	%		30,722		8,509
3 Columbus Circle(10)		04/2016		2.47	%		254,896		—
1552 Broadway(12)		08/2013		3.28	%		95,405		—
747 Madison Avenue		10/2014		3.02	%		33,125		—
Other loan payable		06/2016		1.15	%		30,000		—
Total floating rate debt						$	1,091,087	$	1,390,871
Total mortgages and other loan payable						$	4,131,890	$	3,712,235

⁽¹⁾

Rate represents the effective all-in weighted average interest rate for the quarter ended December 31, 2011.

⁽²⁾

This loan went into default in November 2009 due to the non-payment of debt service. The joint venture is in discussions with the special servicer to resolve this default.

⁽³⁾

Comprised of a $576.0 million mortgage and a $562.4 million mezzanine loan, both of which are fixed rate loans, except for $16.0 million of the mortgage and $15.6 million of the mezzanine loan which are floating rate loans. Up to $200.0 million of the mezzanine loan, secured indirectly by these properties, is recourse to us. We believe it is unlikely that we will be required to perform under this guaranty.

⁽⁴⁾

We acquired the remaining interest in this joint venture in April 2011. As a result, we have consolidated this investment since April 2011. See Notes 3 and 8.

99

SL Green Realty Corp.

Notes to Consolidated Financial Statements (Continued)

December 31, 2011

6. Investment in Unconsolidated Joint Ventures (Continued)

⁽⁵⁾

This loan has a committed amount of $91.2 million.

⁽⁶⁾

This loan was refinanced in June 2011. We sold our interest in this joint venture in August 2011.

⁽⁷⁾

We acquired the remaining interest in this joint venture in January 2011. As a result, we have consolidated this investment since January 2011. See Notes 3 and 8.

⁽⁸⁾

This loan has a committed amount of $285.0 million.

⁽⁹⁾

The $31.0 million loan was repaid in December 2010 as part of a recapitalization of the joint venture. The new loan has a committed amount of $90.0 million.

⁽¹⁰⁾

We provided 50% of a bridge loan to this joint venture. In April 2011, our joint venture with The Moinian Group which owns the property located at 3 Columbus Circle, New York, refinanced the bridge loan and replaced it with a $260.0 million 5-year mortgage with the Bank of China, which carries a floating rate of interest of 210 basis points over the 30-day LIBOR, at which point SL Green and Deutsche Bank's bridge loan was repaid. The joint venture has the ability to increase the mortgage by $40.0 million based on meeting certain performance hurdles. In connection with this obligation, SLG has executed a master lease agreement. SLG's partner has executed a contribution agreement to reflect its pro rata obligation under the master lease.

⁽¹¹⁾

In May 2011, this loan was extended by 1-year.

⁽¹²⁾

This loan has a committed amount of $125.0 million.

        We act as the operating partner and day-to-day manager for all our joint ventures, except for 800 Third Avenue, 1 and 2 Jericho Plaza, 379 West Broadway, 3 Columbus Circle and The Meadows. We are generally entitled to receive fees for providing management, leasing, construction supervision and asset management services to our joint ventures. We earned approximately $12.1 million, $14.6 million and $19.0 million for these services for the years ended December 31, 2011, 2010 and 2009, respectively. In addition, we generally have the ability to earn incentive fees based on the ultimate financial performance of certain of the joint venture properties.

        The condensed combined balance sheets for our unconsolidated joint ventures at December 31, 2011 and 2010 are as follows (in thousands):

	2011		2010
Assets
Commercial real estate property, net	$	5,699,113	$	4,831,897
Other assets		599,596		516,049
Total assets	$	6,298,709	$	5,347,946
Liabilities and members' equity
Mortgages and other loans payable	$	4,131,890	$	3,712,235
Other liabilities		250,925		233,463
Members' equity		1,915,894		1,402,248
Total liabilities and members' equity	$	6,298,709	$	5,347,946
Company's net investment in unconsolidated joint ventures	$	893,933	$	631,570

100

SL Green Realty Corp.

Notes to Consolidated Financial Statements (Continued)

December 31, 2011

6. Investment in Unconsolidated Joint Ventures (Continued)

        The condensed combined statements of income for the unconsolidated joint ventures for the three years ended December 31, 2011, from the acquisition date, are as follows (in thousands):

	2011			2010		2009
Total revenues	$	480,935		$	593,159	$	689,087
Operating expenses		75,513			94,515		120,215
Real estate taxes		51,511			66,588		84,827
Transaction related costs		2,665			1,105		—
Interest		223,400			224,766		208,295
Depreciation and amortization		137,070			141,284		156,470
Total expenses		490,159			528,258		569,807
Net (loss) income before gain on sale	$	(9,224	)	$	64,901	$	119,280
Company's equity in net income of unconsolidated joint ventures	$	1,583		$	39,607	$	62,878

Gramercy Capital Corp.

        In April 2004, we formed Gramercy as a commercial real estate finance business. Gramercy qualified as a REIT for federal income tax purposes and expects to qualify for its current fiscal year.

        At December 31, 2011, we held 3.2 million shares, or approximately 6.3% of Gramercy's common stock. Our total investment of approximately $8.1 million is based on the market value of our common stock investment in Gramercy at December 31, 2011. As we no longer have any significant influence over Gramercy, we account for our investment as available-for-sale securities. During 2011, we sold 2.1 million shares of Gramercy common stock and realized a gain of approximately $4.5 million on the sale. During 2010, we sold 870,000 shares of Gramercy common stock and realized a gain of approximately $1.4 million on the sale. These gains were reclassified out of Accumulated Other Comprehensive Loss.

        Effective May 2005, June 2009 and October 2009, Gramercy entered into lease agreements with an affiliate of ours, for their corporate offices at 420 Lexington Avenue, New York, New York. The first lease is for approximately 7,300 square feet and carries a term of ten years with rents of approximately $249,000 per annum for year one increasing to $315,000 per annum in year ten. The second lease is for approximately 900 square feet pursuant to a lease which ends in April 2015, with annual rent under this lease of approximately $35,300 per annum for year one increasing to $42,800 per annum in year six. The third lease is for approximately 1,400 square feet pursuant to a lease which ends in April 2015, with annual rent under this lease of approximately $67,300 per annum for year one increasing to $80,500 per annum in year six.

        See Note 5 for information on our debt and preferred equity investments in which Gramercy also holds an interest.

        Marc Holliday, our chief executive officer, remains a board member of Gramercy.

7. Deferred Costs

        Deferred costs at December 31, 2011 and 2010 consisted of the following (in thousands):

	2011			2010
Deferred financing	$	113,620		$	86,256
Deferred leasing		238,394			200,633
		352,014			286,889
Less accumulated amortization		(141,228	)		(114,372	)
Deferred costs, net	$	210,786		$	172,517

101

SL Green Realty Corp.

Notes to Consolidated Financial Statements (Continued)

December 31, 2011

8. Mortgages and Other Loans Payable

        The first mortgages and other loans payable collateralized by the respective properties and assignment of leases at December 31, 2011 and 2010, respectively, were as follows (in thousands):

Property(1)	Maturity Date		Interest Rate(2)			December 31, 2011		December 31, 2010
711 Third Avenue		06/2015		4.99	%	$	120,000	$	120,000
420 Lexington Avenue(3)		09/2016		7.15	%		187,182		149,141
673 First Avenue		02/2013		5.67	%		29,906		30,781
220 East 42nd Street		11/2013		5.24	%		190,431		194,758
625 Madison Avenue		11/2015		7.22	%		129,098		132,209
609 Fifth Avenue		10/2013		5.85	%		94,963		96,502
609 Partners, LLC(15)		07/2014		5.00	%		31,721		31,722
485 Lexington Avenue		02/2017		5.61	%		450,000		450,000
120 West 45th Street		02/2017		6.12	%		170,000		170,000
919 Third Avenue(4)		06/2023		5.12	%		500,000		219,879
300 Main Street		02/2017		5.75	%		11,500		11,500
500 West Putnam		01/2016		5.52	%		24,563		25,000
One Madison Avenue		05/2020		5.91	%		626,740		640,076
125 Park Avenue		10/2014		5.75	%		146,250		146,250
2 Herald Square		04/2017		5.36	%		191,250		191,250
885 Third Avenue		07/2017		6.26	%		267,650		267,650
292 Madison Avenue(14)		08/2017		6.17	%		59,099		59,099
110 East 42nd Street(5)		07/2017		5.81	%		65,000		—
Landmark Square		12/2016		4.00	%		86,000		—
Other loan payable(13)		09/2019		8.00	%		50,000		—
Total fixed rate debt						$	3,431,353	$	2,935,817
100 Church Street(6)		—		—		$	—	$	139,672
Landmark Square(7)		—		—			—		110,180
28 West 44th Street(8)		—		—			—		122,007
521 Fifth Avenue(9)		04/2013		2.25	%		150,000		—
1515 Broadway(10)		12/2014		3.50	%		450,363		—
180 Maiden Lane(16)		11/2016		2.56	%		279,332		—
Other loan payable(11)		06/2013		3.47	%		62,792		62,792
Other loan payable(12)		—		—			—		30,000
Total floating rate debt						$	942,487	$	464,651
Total mortgages and other loans payable						$	4,373,840	$	3,400,468

⁽¹⁾

Held in bankruptcy remote special purpose entities.

⁽²⁾

Effective interest rate for the quarter ended December 31, 2011.

⁽³⁾

We increased this loan by $40.0 million in March 2011.

⁽⁴⁾

We own a 51% controlling interest in the joint venture that is the borrower on this loan. This loan is non-recourse to us. In June 2011, our joint venture replaced the $219.9 million 6.87% mortgage that was due to mature in August 2011 with a $500.0 million mortgage.

102

SL Green Realty Corp.

Notes to Consolidated Financial Statements (Continued)

December 31, 2011

8. Mortgages and Other Loans Payable (Continued)

⁽⁵⁾

We took control of this property in May 2011 and assumed the mortgage as part of the transaction. This loan consists of a $65.0 million A-tranche and an $18.1 million B-tranche. The B-tranche does not accrue interest and is due only under certain circumstances as described in the loan agreement.

⁽⁶⁾

This mortgage was repaid in March 2011.

⁽⁷⁾

The final loan renewal option was exercised in December 2010. This loan was repaid in May 2011.

⁽⁸⁾

This property was sold in May 2011 and the related mortgage was repaid.

⁽⁹⁾

We assumed a $140.0 million mortgage in connection with the acquisition of the remaining partnership interest in January 2011. As a result, we have consolidated this investment since January 2011. The mortgage was schedule to mature in April 2011. In April 2011, we refinanced the property with a new $150.0 million 2-year mortgage which carries a floating rate of interest of 200 basis points over the 30-day LIBOR.

⁽¹⁰⁾

We acquired the remaining interest in this joint venture in April 2011. As a result, we have consolidated this investment since April 2011.

⁽¹¹⁾

This loan bears interest at 250 basis points over the three month GBP LIBOR. This loan is denominated in British Pounds.

⁽¹²⁾

In March 2011, this loan was assigned to a joint venture. See Note 5.

⁽¹³⁾

This loan is secured by a portion of a preferred equity investment.

⁽¹⁴⁾

This loan is included in liabilities related to assets held for sale at December 31, 2011 as the property is held for sale as of that date. See Note 4.

⁽¹⁵⁾

As part of an acquisition, the Operating Partnership issued 63.9 million units of our 5.0% Series E preferred units, or the Series E units, with a liquidation preference of $1.00 per unit. As of December 31, 2011, 32.2 million Series E units had been redeemed.

⁽¹⁶⁾

In connection with this obligation, SLG has executed a master lease agreement. SLG's partner has executed a contribution agreement to reflect its pro rata obligation under the master lease.

        In September 2010, we repaid a $104.0 million loan payable which had been secured by our interest in a debt investment.

        At December 31, 2011 and 2010, the gross book value of the assets collateralizing the mortgages and other loans payable was approximately $7.4 billion and $5.8 billion, respectively.

9. Corporate Indebtedness

2011 Revolving Credit Facility

        In November 2011, we entered into a $1.5 billion revolving credit facility, or the 2011 revolving credit facility. The 2011 revolving credit facility bears interest at a spread over LIBOR ranging from 100 basis points to 185 basis points, based on the credit rating assigned to the senior unsecured long term indebtedness of ROP. At December 31, 2011, the applicable spread was 150 basis points. The 2011 revolving credit facility matures in November 2015 and has a one-year as-of-right extension option, subject to certain conditions and the payment of an extension fee of 20 basis points. We also have an option, subject to customary conditions, without the consent of existing lenders, to increase the capacity under the 2011 revolving credit facility to $1.75 billion at any time prior to the maturity date. We are required to pay quarterly in arrears a 17.5 to 45 basis point facility fee on the total commitments under the 2011 revolving credit facility, which fee is based on the credit rating assigned to the senior unsecured long term indebtedness of ROP. As of December 31, 2011, the facility fee was 35 basis points. At December 31, 2011, we had approximately $350.0 million of borrowings and outstanding letters of credit totaling approximately $99.3 million outstanding under the 2011 revolving credit facility, with undrawn capacity of approximately $1.1 billion.

103

SL Green Realty Corp.

Notes to Consolidated Financial Statements (Continued)

December 31, 2011

9. Corporate Indebtedness (Continued)

        The Company, ROP, and the Operating Partnership are all borrowers jointly and severally obligated under the 2011 revolving credit facility. No other subsidiary of ours is an obligor under the 2011 revolving credit facility.

        The 2011 revolving credit facility includes certain restrictions and covenants (see Restrictive Covenants below).

2007 Revolving Credit Facility

        The 2011 revolving credit facility replaced our $1.5 billion revolving credit facility, or the 2007 revolving credit facility, which was terminated concurrently with the entering into the 2011 revolving credit facility. The 2007 revolving credit facility bore interest at a spread over the 30-day LIBOR ranging from 70 basis points to 110 basis points, based on our leverage ratio, and required a 12.5 to 20 basis point fee, also based on our leverage ratio, on the unused balance payable annually in arrears. The 2007 revolving credit facility included certain restrictions and covenants and, as of the time of the termination of the 2007 revolving credit facility and as of October 31, 2011, we were in compliance with all such restrictions and covenants.

Senior Unsecured Notes

        The following table sets forth our senior unsecured notes and other related disclosures by scheduled maturity date as of December 31, 2011 and 2010, respectively (in thousands):

Issuance	December 31, 2011 Unpaid Principal Balance		December 31, 2011 Accreted Balance		December 31, 2010 Accreted Balance		Coupon Rate(4)			Effective Rate			Term (in Years)		Maturity
January 22, 2004(1)(5)(7)	$	—	$	—	$	84,823		5.15	%		5.900	%		7		January 15, 2011
August 13, 2004(1)(5)		98,578		98,578		98,578		5.875	%		6.100	%		10		August 15, 2014
March 31, 2006(1)		275,000		274,804		274,764		6.00	%		6.200	%		10		March 31, 2016
March 16, 2010(8)		250,000		250,000		250,000		7.75	%		7.750	%		10		March 15, 2020
June 27, 2005(1)(2)(5)		657		657		657		4.00	%		4.000	%		20		June 15, 2025
March 26, 2007(3)(5)		120,157		119,423		123,171		3.00	%		5.460	%		20		March 30, 2027
October 12, 2010(6)		345,000		277,629		268,552		3.00	%		7.125	%		7		October 15, 2017
August 5, 2011(8)		250,000		249,565		—		5.00	%		5.000	%		7		August 15, 2018
	$	1,339,392	$	1,270,656	$	1,100,545

⁽¹⁾

Issued by ROP.

⁽²⁾

Exchangeable senior debentures which are currently callable at 100% of par. In addition, the debentures can be put to us, at the option of the holder at par plus accrued and unpaid interest, on June 15, 2015 and 2020 and upon the occurrence of certain change of control transactions. As a result of the acquisition of all outstanding shares of common stock of Reckson Associates Realty Corp., or the Reckson Merger, the adjusted exchange rate for the debentures is 7.7461 shares of our common stock per $1,000 of principal amount of debentures and the adjusted reference dividend for the debentures is $1.3491. During the year ended December 31, 2010, we repurchased approximately $115.4 million of these debentures, inclusive of debentures purchased in the tender offer discussed in Note (5) below, and realized a net loss on early extinguishment of debt of approximately $0.3 million. On the date of the Reckson Merger, $13.1 million was recorded in equity and was fully amortized as of June 30, 2010.

⁽³⁾

In March 2007, the Operating Partnership issued $750.0 million of these exchangeable notes. Interest on these notes is payable semi-annually on March 30 and September 30. The notes have an initial exchange rate representing an exchange price that was set at a

104

SL Green Realty Corp.

Notes to Consolidated Financial Statements (Continued)

December 31, 2011

9. Corporate Indebtedness (Continued)

25.0% premium to the last reported sale price of our common stock on March 20, 2007, or $173.30. The initial exchange rate is subject to adjustment under certain circumstances. The notes are senior unsecured obligations of our Operating Partnership and are exchangeable upon the occurrence of specified events, and during the period beginning on the twenty-second scheduled trading day prior to the maturity date and ending on the second business day prior to the maturity date, into cash or a combination of cash and shares of our common stock, if any, at our option. The notes are redeemable, at our option, on and after April 15, 2012. We may be required to repurchase the notes on March 30, 2012, 2017 and 2022, and upon the occurrence of certain designated events. The net proceeds from the offering were approximately $736.0 million, after deducting estimated fees and expenses. The proceeds of the offering were used to repay certain of our existing indebtedness, make investments in additional properties, and make open market purchases of our common stock and for general corporate purposes. During the year ended December 31, 2010, we repurchased approximately $41.7 million of these bonds, inclusive of notes purchased in the tender offer discussed in Note (5) below, and realized a net loss on early extinguishment of debt of approximately $0.5 million. On the issuance date, $66.6 million was recorded in equity. As of December 31, 2011, approximately $0.7 million remained unamortized.

⁽⁴⁾

Interest on the senior unsecured notes is payable semi-annually with principal and unpaid interest due on the scheduled maturity dates.

⁽⁵⁾

In April 2010, we completed a cash tender offer and purchased $13.0 million of the outstanding 3.000% Exchangeable Senior Notes due 2027 issued by the Operating Partnership, and $13.2 million of the outstanding 4.000% Exchangeable Senior Debentures due 2025, $38.8 million of the 5.150% Notes due 2011 and $50.0 million of the 5.875% Notes due 2014 issued by Reckson.

⁽⁶⁾

In October 2010, the Operating Partnership issued $345.0 million of these exchangeable notes. Interest on these notes is payable semi-annually on April 15 and October 15. The notes have an initial exchange rate representing an exchange price that was set at a 30.0% premium to the last reported sale price of our common stock on October 6, 2010, or $85.81. The initial exchange rate is subject to adjustment under certain circumstances. The notes are senior unsecured obligations of our Operating Partnership and are exchangeable upon the occurrence of specified events, and during the period beginning on the twenty-second scheduled trading day prior to the maturity date and ending on the second business day prior to the maturity date, into cash or a combination of cash and shares of our common stock, if any, at our option. The notes are guaranteed by ROP. The net proceeds from the offering were approximately $336.5 million, after deducting fees and expenses. The proceeds of the offering were used to repay certain of our existing indebtedness, make investments in additional properties, and for general corporate purposes. On the issuance date, $78.3 million was recorded in equity. As of December 31, 2011, approximately $67.4 million remained unamortized.

⁽⁷⁾

In January 2011, the remaining outstanding $84.8 million of ROP's 5.15% unsecured notes were repaid at par on their maturity date.

⁽⁸⁾

Issued by us, the Operating Partnership and ROP, as co-obligors.

Restrictive Covenants

        The terms of the 2011 revolving credit facility and certain of our senior unsecured notes include certain restrictions and covenants which may limit, among other things, our ability to pay dividends (as discussed below), make certain types of investments, incur additional indebtedness, incur liens and enter into negative pledge agreements and the disposition of assets, and which require compliance with financial ratios including our minimum tangible net worth, a maximum ratio of total indebtedness to total asset value, a minimum ratio of EBITDA to fixed charges and a maximum ratio of unsecured indebtedness to unencumbered asset value. The dividend restriction referred to above provides that we will not during any time when we are in default, make distributions with respect to common stock or other equity interests, except to enable us to continue to qualify as a REIT for Federal Income Tax purposes. As of December 31, 2011 and 2010, we were in compliance with all such covenants.

Junior Subordinate Deferrable Interest Debentures

        In June 2005, we issued $100.0 million in unsecured floating rate trust preferred securities through a newly formed trust, SL Green Capital Trust I, or the Trust, which is a wholly-owned subsidiary of our Operating Partnership. The securities mature in 2035 and bear interest at a fixed rate of 5.61% for the first ten years ending

105

SL Green Realty Corp.

Notes to Consolidated Financial Statements (Continued)

December 31, 2011

9. Corporate Indebtedness (Continued)

July 2015. Interest payments may be deferred for a period of up to eight consecutive quarters if our Operating Partnership exercises its right to defer such payments. The trust preferred securities are redeemable, at the option of our Operating Partnership, in whole or in part, with no prepayment premium. We do not consolidate the Trust even though it is a variable interest entity as we are not the primary beneficiary. Because the Trust is not consolidated, we have recorded the debt on our balance sheet and the related payments are classified as interest expense.

Principal Maturities

        Combined aggregate principal maturities of mortgages and other loans payable, 2011 revolving credit facility, trust preferred securities, senior unsecured notes and our share of joint venture debt as of December 31, 2011, including as-of-right extension options, were as follows (in thousands):

	Scheduled Amortization		Principal Repayments		Revolving Credit Facility		Trust Preferred Securities		Senior Unsecured Notes		Total		Joint Venture Debt
2012	$	52,443	$	—	$	—	$	—	$	119,423	$	171,866	$	176,457
2013		52,470		516,179		—		—		—		568,649		93,683
2014		50,322		597,454		—		—		98,578		746,354		123,983
2015		40,845		229,537		—		—		657		271,039		102,476
2016		39,426		516,974		350,000		—		274,804		1,181,204		527,814
Thereafter		158,551		2,119,639		—		100,000		777,194		3,155,384		800,102
	$	394,057	$	3,979,783	$	350,000	$	100,000	$	1,270,656	$	6,094,496	$	1,824,515

        Interest expense, excluding capitalized interest, was comprised of the following (in thousands):

	Years Ended December 31,
	2011			2010			2009
Interest expense	$	287,921		$	232,794		$	236,961
Interest income		(2,004	)		(2,146	)		(4,306	)
Interest expense, net	$	285,917		$	230,648		$	232,655
Interest capitalized	$	5,123		$	—		$	98

10. Fair Value of Financial Instruments

        The following disclosures of estimated fair value were determined by management, using available market information and appropriate valuation methodologies as discussed in Note 2. Considerable judgment is necessary to interpret market data and develop estimated fair value. Accordingly, the estimates presented herein are not necessarily indicative of the amounts we could realize on disposition of the financial instruments. The use of different market assumptions and/or estimation methodologies may have a material effect on the estimated fair value amounts.

        Cash and cash equivalents, accounts receivable and accounts payable balances reasonably approximate their fair values due to the short maturities of these items. Mortgages and other loans payable, junior subordinate

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December 31, 2011

10. Fair Value of Financial Instruments (Continued)

deferrable interest debentures and the senior unsecured notes had an estimated fair value based on discounted cash flow models, based on Level 3 inputs, of approximately $5.2 billion, compared to the book value of the related fixed rate debt of approximately $4.8 billion at December 31, 2011. Our floating rate debt, inclusive of our 2011 revolving credit facility, had an estimated fair value based on discounted cash flow models, based on Level 3 inputs, of approximately $1.2 billion, compared to the book value of approximately $1.3 billion at December 31, 2011. Our debt and preferred equity investments had an estimated fair value ranging between $838.1 million and $936.6 million, compared to the book value of approximately $985.9 million at December 31, 2011.

        Disclosure about fair value of financial instruments is based on pertinent information available to us as of December 31, 2011. Although we are not aware of any factors that would significantly affect the reasonable fair value amounts, such amounts have not been comprehensively revalued for purposes of these financial statements since that date and current estimates of fair value may differ significantly from the amounts presented herein.

11. Rental Income

        The Operating Partnership is the lessor and the sublessor to tenants under operating leases with expiration dates ranging from January 1, 2012 to 2037. The minimum rental amounts due under the leases are generally either subject to scheduled fixed increases or adjustments. The leases generally also require that the tenants reimburse us for increases in certain operating costs and real estate taxes above their base year costs. Approximate future minimum rents to be received over the next five years and thereafter for non-cancelable operating leases in effect at December 31, 2011 for the consolidated properties, including consolidated joint venture properties, and our share of unconsolidated joint venture properties are as follows (in thousands):

	Consolidated Properties		Unconsolidated Properties
2012	$	955,920	$	199,659
2013		919,388		196,868
2014		843,069		189,078
2015		755,334		184,372
2016		673,792		179,526
Thereafter		3,159,160		829,419
	$	7,306,663	$	1,778,922

12. Related Party Transactions

Cleaning/ Security/ Messenger and Restoration Services

        Through Alliance Building Services, or Alliance, First Quality Maintenance, L.P., or First Quality, provides cleaning, extermination and related services, Classic Security LLC provides security services, Bright Star Couriers LLC provides messenger services, and Onyx Restoration Works provides restoration services with respect to certain properties owned by us. Alliance is partially owned by Gary Green, a son of Stephen L. Green, the chairman of our board of directors. In addition, First Quality has the non-exclusive opportunity to provide cleaning and related services to individual tenants at our properties on a basis separately negotiated with any tenant seeking such additional services. The Service Corporation has entered into an arrangement with Alliance whereby it will receive a profit participation above a certain threshold for services provided by Alliance to certain

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December 31, 2011

12. Related Party Transactions (Continued)

tenants at certain buildings above the base services specified in their lease agreements. Alliance paid the Service Corporation approximately $2.7 million, $2.2 million and $1.8 million for the years ended December 31, 2011, 2010 and 2009, respectively. We paid Alliance approximately $16.1 million, $14.2 million and $14.9 million for three years ended December 31, 2011, respectively, for these services (excluding services provided directly to tenants).

Leases

        Nancy Peck and Company leases 1,003 square feet of space at 420 Lexington Avenue under a lease that ends in August 2015. Nancy Peck and Company is owned by Nancy Peck, the wife of Stephen L. Green. The rent due pursuant to the lease is $35,516 per annum for year one increasing to $40,000 in year seven.

Brokerage Services

        Cushman & Wakefield Sonnenblick-Goldman, LLC, or Sonnenblick, a nationally recognized real estate investment banking firm, provided mortgage brokerage services to us. Mr. Morton Holliday, the father of Mr. Marc Holliday, was a Managing Director of Sonnenblick at the time of the financings. In 2009, we paid approximately $428,000 to Sonnenblick in connection with the purchase of a sub-leasehold interest and the refinancing of 420 Lexington Avenue.

Management Fees

        S.L. Green Management Corp., a consolidated entity, receives property management fees from an entity in which Stephen L. Green owns an interest. The aggregate amount of fees paid to S.L. Green Management Corp. from such entity was approximately $420,300 in 2011, $390,700 in 2010 and $351,700 in 2009.

Other

        Amounts due from related parties at December 31, 2011 and 2010 consisted of the following (in thousands):

	2011		2010
Due from joint ventures	$	477	$	1,062
Other		3,524		5,233
Related party receivables	$	4,001	$	6,295

Gramercy Capital Corp.

        See Note 6, "Investment in Unconsolidated Joint Ventures—Gramercy Capital Corp.," for disclosure on related party transactions between Gramercy and the Company.

13. Equity

Common Stock

        Our authorized capital stock consists of 260,000,000 shares, $0.01 par value, of which we have authorized the issuance of up to 160,000,000 shares of common stock, $0.01 par value per share, 75,000,000 shares of excess

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December 31, 2011

13. Equity (Continued)

stock, at $0.01 par value per share, and 25,000,000 shares of preferred stock, par value $0.01 per share. As of December 31, 2011, 85,782,723 shares of common stock and no shares of excess stock were issued and outstanding.

        In 2011, we, along with the Operating Partnership, entered into "at-the-market" equity offering programs, or ATM programs, to sell an aggregate of $775.0 million of our common stock. As of December 31, 2011, we had sold 6.7 million shares of our common stock through the ATM programs for aggregate gross proceeds of approximately $525.0 million ($517.1 million of net proceeds after related expenses). The net proceeds were used to repay debt, fund new investments and for other corporate purposes. As of December 31, 2011, we had $250.0 million available to issue under the ATM programs.

Perpetual Preferred Stock

        We have 11,700,000 shares of our 7.625% Series C cumulative redeemable preferred stock, or the Series C preferred stock, outstanding with a mandatory liquidation preference of $25.00 per share. The Series C preferred stockholders receive annual dividends of $1.90625 per share paid on a quarterly basis and dividends are cumulative, subject to certain provisions. Since December 12, 2008, we have been entitled to redeem the Series C preferred stock at par for cash at our option. The Series C preferred stock was recorded net of underwriters discount and issuance costs.

        We also have 4,000,000 shares of our 7.875% Series D cumulative redeemable preferred stock, or the Series D preferred stock, outstanding with a mandatory liquidation preference of $25.00 per share. The Series D preferred stockholders receive annual dividends of $1.96875 per share paid on a quarterly basis and dividends are cumulative, subject to certain provisions. Since May 27, 2009, we have been entitled to redeem the Series D preferred stock at par for cash at our option. The Series D preferred stock was recorded net of underwriters discount and issuance costs.

Rights Plan

        In February 2000, our board of directors authorized a distribution of one preferred share purchase right, or Right, for each outstanding share of common stock under a shareholder rights plan. This distribution was made to all holders of record of the common stock on March 31, 2000. Each Right entitled the registered holder to purchase from us one one-hundredth of a share of Series B junior participating preferred stock, par value $0.01 per share, or Preferred Shares, at a price of $60.00 per one one-hundredth of a Preferred Share, or Purchase Price, subject to adjustment as provided in the rights agreement. The Rights expired on March 5, 2010 and the rights plan was terminated.

Dividend Reinvestment and Stock Purchase Plan

        We filed a registration statement with the SEC for our dividend reinvestment and stock purchase plan, or DRIP, automatically became effective upon filing. We registered 2,000,000 shares of our common stock under the DRIP. The DRIP commenced on September 24, 2001.

        During the years ended December 31, 2011 and 2010, approximately 473 and 250,900 shares of our common stock were issued and approximately $34,000 and $11.3 million of proceeds were received, respectively, from dividend reinvestments and/or stock purchases under the DRIP. DRIP shares may be issued at a discount to the market price.

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December 31, 2011

13. Equity (Continued)

Second Amended and Restated 2005 Stock Option and Incentive Plan

        We have a stock option and incentive plan. The second amended and restated 2005 Stock Option and Incentive Plan, or the 2005 Plan, was approved by our board of directors in April 2010 and our stockholders in June 2010 at our annual meeting of stockholders. The 2005 Plan authorizes the issuance of stock options, stock appreciation rights, unrestricted and restricted stock, phantom shares, dividend equivalent rights and other equity-based awards. Subject to adjustments upon certain corporate transactions or events, awards with respect to up to a maximum of 10,730,000 fungible units may be granted under the 2005 Plan. Currently, different types of awards count against the limit on the number of fungible units differently, with (1) full-value awards (i.e., those that deliver the full value of the award upon vesting, such as restricted stock) counting as 1.65 fungible units per share subject to such award (2) stock options, stock appreciation rights and other awards that do not deliver full value and expire five year from the date of grant counting as 0.79 fungible units per share subject to such award and (3) all other awards (e.g., ten-year stock options) counting as 1.0 fungible units per share subject to such award. Awards granted under the 2005 Plan prior to the approval of the second amendment and restatement in June 2010 continue to count against the fungible unit limit based on the ratios that were in effect at the time such awards were granted, which may be different than the current ratios. As a result, depending on the types of awards issued, the 2005 Plan may result in the issuance of more or less than 10,730,000 shares. If a stock option or other award granted under the 2005 Plan expires or terminates, the common stock subject to any portion of the award that expires or terminates without having been exercised or paid, as the case may be, will again become available for the issuance of additional awards. Shares of our common stock distributed under the 2005 Plan may be treasury shares or authorized but unissued shares. Currently, unless the 2005 Plan has been previously terminated by the Board, new awards may be granted under the 2005 Plan until June 15, 2020, which is the tenth anniversary of the date that the 2005 Plan was most recently approved by our stockholders. At December 31, 2011, approximately 3.8 million fungible units were available for issuance under the 2005 Plan, or 4.8 million if all fungible units available under the 2005 Plan were issued as five-year stock options.

        Options are granted under the plan at the fair market value on the date of grant and, subject to termination of employment, generally expire ten years from the date of grant, are not transferable other than on death, and generally vest in one to five years commencing one year from the date of grant.

        The fair value of each stock option granted is estimated on the date of grant using the Black-Scholes option pricing model based on historical information with the following weighted average assumptions for grants in 2011, 2010 and 2009.

	2011			2010			2009
Dividend yield		2.00	%		2.00	%		2.15	%
Expected life of option		4.2 years			5.1 years			5 years
Risk-free interest rate		1.00	%		2.09	%		2.17	%
Expected stock price volatility		47.98	%		50.07	%		53.08	%

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December 31, 2011

13. Equity (Continued)

        A summary of the status of our stock options as of December 31, 2011, 2010 and 2009 and changes during the years then ended are presented below:

	2011					2010					2009
	Options Outstanding			Weighted Average Exercise Price		Options Outstanding			Weighted Average Exercise Price		Options Outstanding			Weighted Average Exercise Price
Balance at beginning of year		1,353,002		$	58.85		1,324,221		$	56.74		937,706		$	61.33
Granted		212,400			66.42		180,250			62.00		443,850			46.08
Exercised		(243,901	)		40.48		(109,636	)		31.49		(22,000	)		28.17
Lapsed or cancelled		(44,301	)		65.89		(41,833	)		77.33		(35,335	)		62.75
Balance at end of year		1,277,200		$	63.37		1,353,002		$	58.85		1,324,221		$	56.74
Options exercisable at end of year		644,429		$	72.31		631,224		$	69.42		595,851		$	62.17
Weighted average fair value of options granted during the year	$	4,647,554				$	4,333,281				$	8,276,500

        All options were granted within a price range of $20.67 to $137.18. The remaining weighted average contractual life of the options outstanding and exercisable was 4.0 years and 4.0 years, respectively.

        During the years ended December 31, 2011, 2010, and 2009, we recognized $4.7 million, $4.4 million and $2.8 million of compensation expense, respectively, for these options. As of December 31, 2011 there was approximately $8.4 million of total unrecognized compensation cost related to unvested stock options, which is expected to be recognized over a weighted-average period of three years.

Stock-based Compensation

        Effective January 1, 1999, we implemented a deferred compensation plan, or the Deferred Plan, covering certain of our employees, including our executives. The shares issued under the Deferred Plan were granted to certain employees, including our executives and vesting will occur annually upon the completion of a service period or our meeting established financial performance criteria. Annual vesting occurs at rates ranging from 15% to 35% once performance criteria are reached. A summary of our restricted stock as of December 31, 2011, 2010 and 2009 and charges during the years then ended are presented below:

	2011			2010			2009
Balance at beginning of year		2,728,290			2,330,532			1,824,190
Granted		185,333			400,925			506,342
Cancelled		(1,167	)		(3,167	)		—
Balance at end of year		2,912,456			2,728,290			2,330,532
Vested during the year		66,299			153,644			420,050
Compensation expense recorded	$	17,365,401		$	15,327,206		$	23,301,744
Weighted average fair value of restricted stock granted during the year	$	21,768,084		$	28,269,983		$	4,979,218

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December 31, 2011

13. Equity (Continued)

        The fair value of restricted stock that vested during the years ended December 31, 2011, 2010 and 2009 was $4.3 million, $16.6 million and $28.0 million, respectively. As of December 31, 2011, there was $14.7 million of total unrecognized compensation cost related to unvested restricted stock, which is expected to be recognized over a weighted-average period of two years.

        For the years ended December 31, 2011, 2010 and 2009, approximately $3.4 million, $2.2 million and $1.7 million, respectively, was capitalized to assets associated with compensation expense related to our long-term compensation plans, restricted stock and stock options.

        We granted LTIP units which had a fair value of $8.5 million as part of the 2011 performance stock bonus award. The grant date fair value of the LTIP unit awards was calculated in accordance with ASC 718. A third party consultant determined the fair value of the LTIP units to have a discount from our unrestricted common stock price. The discount was calculated by considering the inherent uncertainty that the LTIP units will reach parity with other common partnership units and the illiquidity due to transfer restrictions.

2003 Long-Term Outperformance Compensation Program

        Our board of directors adopted a long-term, seven-year compensation program for certain members of senior management. The program provided for restricted stock awards to be made to plan participants if the holders of our common equity achieved a total return in excess of 40% over a 48-month period commencing April 1, 2003. In April 2007, the compensation committee determined that under the terms of the 2003 Outperformance Plan, as of March 31, 2007, the performance hurdles had been met and the maximum performance pool of $22,825,000, taking into account forfeitures, was established. In connection with this event, approximately 166,312 shares of restricted stock (as adjusted for forfeitures) were allocated under the 2005 Plan. In accordance with the terms of the program, 40% of each award vested on March 31, 2007 and the remainder vested ratably over the subsequent three years based on continued employment. The fair value of the awards under this program on the date of grant was determined to be $3.2 million. This fair value is expensed over the term of the restricted stock award. Forty percent of the value of the award was amortized over four years from the date of grant and the balance was amortized, in equal parts, over five, six and seven years (i.e., 20% of the total value was amortized over five years (20% per year), 20% of the total value was amortized over six years (16.67% per year) and 20% of the total value was amortized over seven years (14.29% per year). We recorded compensation expense of $23,000 and $0.1 million related to this plan during the years ended December 31, 2010 and 2009, respectively. The cost of the 2003 Outperformance Plan had been fully expensed as of March 31, 2010.

2005 Long-Term Outperformance Compensation Program

        In December 2005, the compensation committee of our board of directors approved a long-term incentive compensation program, the 2005 Outperformance Plan. Participants in the 2005 Outperformance Plan were entitled to earn LTIP Units in our Operating Partnership if our total return to stockholders for the three-year period beginning December 1, 2005 exceeded a cumulative total return to stockholders of 30%; provided that participants were entitled to earn LTIP Units earlier in the event that we achieved maximum performance for 30 consecutive days. The total number of LTIP Units that could be earned was to be a number having an assumed value equal to 10% of the outperformance amount in excess of the 30% benchmark, subject to a maximum dilution cap equal to the lesser of 3% of our outstanding shares and units of limited partnership interest as of December 1, 2005 or $50.0 million. On June 14, 2006, the compensation committee determined that under the terms of the 2005 Outperformance Plan, as of June 8, 2006, the performance period had accelerated and the

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December 31, 2011

13. Equity (Continued)

maximum performance pool of $49,250,000, taking into account forfeitures, had been earned. Under the terms of the 2005 Outperformance Plan, participants also earned additional LTIP Units with a value equal to the distributions that would have been paid with respect to the LTIP Units earned if such LTIP Units had been earned at the beginning of the performance period. The total number of LTIP Units earned under the 2005 Outperformance Plan by all participants as of June 8, 2006 was 490,475. Under the terms of the 2005 Outperformance Plan, all LTIP Units that were earned remained subject to time-based vesting, with one-third of the LTIP Units earned vested on each of November 30, 2008 and the first two anniversaries thereafter based on continued employment. The earned LTIP Units received regular quarterly distributions on a per unit basis equal to the dividends per share paid on our common stock, whether or not they were vested.

        The cost of the 2005 Outperformance Plan (approximately $8.0 million, subject to adjustment for forfeitures) was amortized into earnings through the final vesting period. We recorded approximately $1.6 million and $2.3 million of compensation expense during the years ended December 31, 2010 and 2009, respectively, in connection with the 2005 Outperformance Plan. The cost of the 2005 Outperformance Plan had been fully expensed as of June 30, 2010.

2006 Long-Term Outperformance Compensation Program

        On August 14, 2006, the compensation committee of our board of directors approved a long-term incentive compensation program, the 2006 Outperformance Plan. The performance criteria under the 2006 Outperformance Plan were not met and, accordingly, no LTIP Units were earned under the 2006 Outperformance Plan.

        The cost of the 2006 Outperformance Plan (approximately $16.4 million, subject to adjustment for forfeitures) was amortized into earnings through July 31, 2011. We recorded approximately $70,000, $0.2 million and $0.4 million of compensation expense during the years ended December 31, 2011, 2010 and 2009, respectively, in connection with the 2006 Outperformance Plan. The performance criteria under the 2006 Outperformance Plan were not met and, accordingly, no LTIP Units were earned under the 2006 Outperformance Plan. The cost of the 2006 Outperformance Plan had been fully expensed as of September 30, 2011.

SL Green Realty Corp. 2010 Notional Unit Long-Term Compensation Plan

        In December 2009, the compensation committee of our board of directors approved the general terms of the SL Green Realty Corp. 2010 Notional Unit Long-Term Compensation Program, or the 2010 Long Term Compensation Plan. The 2010 Long-Term Compensation Plan is a long-term incentive compensation plan pursuant to which award recipients may earn, in the aggregate, from approximately $15 million up to approximately $75 million of LTIP Units in our Operating Partnership based on our stock price appreciation over three years beginning on December 1, 2009; provided that, if maximum performance has been achieved, approximately $25 million of awards may be earned at any time after the beginning of the second year and an additional approximately $25 million of awards may be earned at any time after the beginning of the third year. The amount of awards earned will range from approximately $15 million if our aggregate stock price appreciation during the performance period is 25% to the maximum amount of approximately $75 million if our aggregate stock price appreciation during the performance period is 50% or greater. No awards will be earned if our aggregate stock price appreciation is less than 25%. After the awards are earned, they will remain subject to vesting, with 50% of any LTIP Units earned vesting on January 1, 2013 and an additional 25% vesting on each of January 1, 2014 and 2015 based, in each case, on continued employment through the vesting date. We will not pay distributions on any LTIP Units until they are earned, at which time we will pay all distributions that would have been paid on the

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December 31, 2011

13. Equity (Continued)

earned LTIP Units since the beginning of the performance period. In January 2011, the compensation committee determined that under the terms of the 2010 Long Term Compensation Plan, as of December 5, 2010, maximum performance had been achieved and, accordingly, approximately 366,815 LTIP Units had been earned under the 2010 Long-Term Compensation Plan. In January 2012, the compensation committee determined that under the terms of the 2010 Long Term Compensation Plan, as of December 1, 2011, maximum performance had been achieved and, accordingly, approximately 385,583 LTIP Units had been earned under the 2010 Long-Term Compensation Plan. In accordance with the terms of the program, 50% of these LTIP Units will vest on January 1, 2013 and the remainder is scheduled to vest ratably over the subsequent two years based on continued employment.

        Overall, the 2010 Long Term Compensation Plan contemplates maximum potential awards of 1,179,987 LTIP Units and a cap of approximately $75 million when earned. However, sufficient shares were not available under the 2005 Plan to fund the entire 2010 Long Term Compensation Plan in December 2009, and the awards granted at that time, in the aggregate, were limited to 744,128 LTIP Units, subject to performance-based and time-based vesting, unless and until additional shares became available under the 2005 Plan prior to the end of the performance period for the 2010 Long Term Compensation Plan. At our annual meeting of stockholders on June 15, 2010, our stockholders approved the adoption of the 2005 Plan which, among other things, increased the number of shares available under the plan. That increase allowed us to award the balance of the LTIP Units due under the 2010 Long-Term Compensation Plan. The remaining awards were granted in June 2010. The cost of the 2010 Long Term Compensation Plan (approximately $31.7 million, subject to forfeitures) will be amortized into earnings through the final vesting period. We recorded compensation expense of approximately $9.3 million, $4.0 million and $0.6 million during the years ended December 31, 2011, 2010 and 2009, respectively, related to this program.

SL Green Realty Corp. 2011 Outperformance Plan

        In August 2011, the compensation committee of our board of directors approved the general terms of the SL Green Realty Corp. 2011 Outperformance Plan, or the 2011 Outperformance Plan. Participants in the 2011 Outperformance Plan may earn, in the aggregate, up to $85 million of LTIP Units in our Operating Partnership based on our total return to stockholders for the three-year period beginning September 1, 2011. Under the 2011 Outperformance Plan, participants will be entitled to share in a "performance pool" comprised of LTIP Units with a value equal to 10% of the amount, if any, by which our total return to stockholders during the three-year period exceeds a cumulative total return to stockholders of 25%, subject to the maximum of $85 million of LTIP Units; provided that if maximum performance has been achieved, approximately one-third of each award may be earned at any time after the beginning of the second year and an additional approximately one-third of each award may be earned at any time after the beginning of the third year. LTIP Units earned under the 2011 Outperformance Plan will be subject to continued vesting requirements, with 50% of any awards earned vesting on August 31, 2014 and the remaining 50% vesting on August 31, 2015, subject to continued employment with us through such dates. Participants will not be entitled to distributions with respect to LTIP Units granted under the 2011 Outperformance Plan unless and until they are earned. If LTIP Units are earned, each participant will also be entitled to the distributions that would have been paid had the number of earned LTIP Units been issued at the beginning of the performance period, with such distributions being paid in the form of additional LTIP Units. Thereafter, distributions will be paid currently with respect to all earned LTIP Units, whether vested or unvested.

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December 31, 2011

13. Equity (Continued)

        As of December 31, 2011, only 50% of the 2011 Outperformance Plan had been granted. The cost of the 2011 Outperformance Plan for the 50% granted (approximately $12.1 million, subject to forfeitures) will be amortized into earnings through the final vesting period. We recorded compensation expense of approximately $0.1 million during the year ended December 31, 2011 related to this program.

Deferred Stock Compensation Plan for Directors

        Under our Independent Director's Deferral Program, which commenced July 2004, our non-employee directors may elect to defer up to 100% of their annual retainer fee, chairman fees and meeting fees. Unless otherwise elected by a participant, fees deferred under the program shall be credited in the form of phantom stock units. The phantom stock units are convertible into an equal number of shares of common stock upon such directors' termination of service from the Board of Directors or a change in control by us, as defined by the program. Phantom stock units are credited to each non-employee director quarterly using the closing price of our common stock on the applicable dividend record date for the respective quarter. Each participating non-employee director's account is also credited for an equivalent amount of phantom stock units based on the dividend rate for each quarter.

        During the year ended December 31, 2011, approximately 8,184 phantom stock units were earned. As of December 31, 2011, there were approximately 66,849 phantom stock units outstanding.

Employee Stock Purchase Plan

        On September 18, 2007, our board of directors adopted the 2008 Employee Stock Purchase Plan, or ESPP, to encourage our employees to increase their efforts to make our business more successful by providing equity-based incentives to eligible employees. The ESPP is intended to qualify as an "employee stock purchase plan" under Section 423 of the Internal Revenue Code of 1986, as amended, and has been adopted by the board to enable our eligible employees to purchase our shares of common stock through payroll deductions. The ESPP became effective on January 1, 2008 with a maximum of 500,000 shares of the common stock available for issuance, subject to adjustment upon a merger, reorganization, stock split or other similar corporate change. We filed a registration statement on Form S-8 with the SEC with respect to the ESPP. The common stock is offered for purchase through a series of successive offering periods. Each offering period will be three months in duration and will begin on the first day of each calendar quarter, with the first offering period having commenced on January 1, 2008. The ESPP provides for eligible employees to purchase the common stock at a purchase price equal to 85% of the lesser of (1) the market value of the common stock on the first day of the offering period or (2) the market value of the common stock on the last day of the offering period. The ESPP was approved by our stockholders at our 2008 annual meeting of stockholders. As of December 31, 2011, approximately 55,600 shares of our common stock had been issued under the ESPP.

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Notes to Consolidated Financial Statements (Continued)

December 31, 2011

13. Equity (Continued)

Earnings per Share

        Earnings per share for the years ended December 31, is computed as follows (in thousands):

Numerator (Income)	2011		2010		2009
Basic Earnings:
Income attributable to SL Green common stockholders	$	617,232	$	270,826	$	37,669
Effect of Dilutive Securities:
Redemption of units to common shares		14,629		4,574		1,221
Stock options		—		—		—
Diluted Earnings:
Income attributable to SL Green common stockholders	$	631,861	$	275,400	$	38,890

Denominator Weighted Average (Shares)	2011		2010		2009
Basic Shares:
Shares available to common stockholders		83,762		78,101		69,735
Effect of Dilutive Securities:
Redemption of units to common shares		1,985		1,321		2,230
3.0% exchangeable senior debentures due 2017		—		—		—
3.0% exchangeable senior debentures due 2027		—		—		—
4.0% exchangeable senior debentures due 2025		—		—		—
Stock-based compensation plans		497		339		79
Diluted Shares		86,244		79,761		72,044

        We have excluded approximately 680,000, 804,800 and 772,529 common stock equivalents from the diluted shares outstanding for the years ended December 31, 2011, 2010 and 2009, respectively, as they were anti-dilutive.

14. Noncontrolling Interests in Operating Partnership

        The common unit holders represent the noncontrolling interest ownership in our Operating Partnership. As of December 31, 2011 and 2010, the noncontrolling interest common unit holders owned 3.12% (2,764,737 units) and 1.57% (1,249,274 units) of the Operating Partnership, respectively. At December 31, 2011, 2,764,737 shares of our common stock were reserved for the redemption of units of limited partnership interest in our Operating Partnership.

        We record the carrying value of the noncontrolling interests in the Operating Partnership at fair market value based on the closing stock price of our common stock at the end of the reporting period. The carrying value of such noncontrolling interests will not be adjusted below its cost basis.

116

SL Green Realty Corp.

Notes to Consolidated Financial Statements (Continued)

December 31, 2011

14. Noncontrolling Interests in Operating Partnership (Continued)

        We have included a rollforward analysis of the activity relating to the noncontrolling interests in the Operating Partnership below (in thousands):

	Year Ended December 31, 2011			Year Ended December 31, 2010
Balance at beginning of period	$	84,338		$	84,618
Distributions		(1,264	)		(511	)
Issuance of units		60,443			2,874
Redemption of units		(865	)		(25,104	)
Net income		14,629			4,574
Accumulated other comprehensive income (loss) allocation		(291	)		(1,061	)
Fair value adjustment		38,040			18,948
Balance at end of period	$	195,030		$	84,338

        In November 2011, as part of an acquisition, the Operating Partnership issued 80,000 units of our 6.0% Series H preferred units, or the Series H preferred units, with a liquidation preference of $25.00 per unit. The Series H preferred unitholders receive annual dividends of $1.50 per unit paid on a quarterly basis and dividends are cumulative, subject to certain provisions. The Series H preferred units can be redeemed at any time at par for cash at our option or the option of the unitholder.

15. Benefit Plans

        The building employees are covered by multi-employer defined benefit pension plans and post-retirement health and welfare plans. We participate in the Building Service 32BJ, or Union, Pension Plan and Health Plan. The Pension Plan is a multi-employer, non-contributory defined benefit pension plan that was established under the terms of collective bargaining agreements between the Service Employees International Union, Local 32BJ, the Realty Advisory Board on Labor Relations, Inc. and certain other employees. This Pension Plan is administered by a joint board of trustees consisting of union trustees and employer trustees and operates under employer identification number 13-1879376. The Pension Plan year runs from July 1 to June 30. Employers contribute to the Pension Plan at a fixed rate on behalf of each covered employee. Separate actuarial information regarding such pension plans is not made available to the contributing employers by the union administrators or trustees, since the plans do not maintain separate records for each reporting unit. However, on September 28, 2010 and September 28, 2011, the actuary certified that for the plan years beginning July 1, 2010 and July 1, 2011, respectively, the Pension Plan was in critical status under the Pension Protection Act of 2006. The Pension Plan trustees adopted a rehabilitation plan consistent with this requirement. No surcharges have been paid to the Pension Plan as of December 31, 2011. For the years ended December 31, 2011, 2010 and 2009, the Pension Plan received contributions from employers totaling $201.3 million, $193.3 million and $177.7 million, respectively.

        The Health Plan was established under the terms of collective bargaining agreements between the Union, the Realty Advisory Board on Labor Relations, Inc. and certain other employers. The Health Plan provides health and other benefits to eligible participants employed in the building service industry who are covered under collective bargaining agreements, or other written agreements, with the Union. The Health Plan is administered by a Board of Trustees with equal representation by the employers and the Union and operates under employer identification number 13-2928869. The Health Plan receives contributions in accordance with collective bargaining agreements or participation agreements. Generally, these agreements provide that the employers contribute to the Health Plan

117

SL Green Realty Corp.

Notes to Consolidated Financial Statements (Continued)

December 31, 2011

15. Benefit Plans (Continued)

at a fixed rate on behalf of each covered employee. Pursuant to the contribution diversion provision in the collective bargaining agreements, the collective bargaining parties agreed, beginning January 1, 2009, to divert to the Pension Plan $1.95 million of employer contributions per quarter that would have been due to the Health Plan. Effective October 1, 2010, the diversion of contributions was discontinued. For the years ended December 31, 2011, 2010 and 2009, the Health Plan received contributions from employers totaling $843.2 million, $770.8 million and $705.5 million, respectively.

        Contributions we made to the multi-employer plans for the years ended December 31, 2011, 2010 and 2009 are included in the table below (in thousands):

Benefit Plan	2011		2010		2009
Pension Plan	$	2,264	$	1,835	$	1,704
Health Plan		6,919		5,754		5,319
Other plans		5,111		4,143		3,638
Total plan contributions	$	14,294	$	11,732	$	10,661

401(K) Plan

        In August 1997, we implemented a 401(K) Savings/Retirement Plan, or the 401(K) Plan, to cover eligible employees of ours, and any designated affiliate. The 401(K) Plan permits eligible employees to defer up to 15% of their annual compensation, subject to certain limitations imposed by the Code. The employees' elective deferrals are immediately vested and non-forfeitable upon contribution to the 401(K) Plan. During 2000, we amended our 401(K) Plan to include a matching contribution, subject to ERISA limitations, equal to 50% of the first 4% of annual compensation deferred by an employee. During 2003, we amended our 401(K) Plan to provide for discretionary matching contributions only. For 2011, 2010 and 2009, a matching contribution equal to 50% of the first 6% of annual compensation was made. For the years ended December 31, 2011, 2010 and 2009, we made matching contributions of approximately $502,000, $450,000 and $450,000, respectively.

16. Commitments and Contingencies

        We and our Operating Partnership are not presently involved in any material litigation nor, to our knowledge, is any material litigation threatened against us or our properties, other than routine litigation arising in the ordinary course of business. Management believes the costs, if any, incurred by us and our Operating Partnership related to this litigation will not materially affect our financial position, operating results or liquidity.

        We have entered into employment agreements with certain executives, which expire between January 2013 and December 2013. The minimum cash-based compensation, including base salary and guaranteed bonus payments, associated with these employment agreements totaled approximately $4.5 million for 2012. In addition these employment agreements provide for deferred compensation awards based on our stock price and which were valued at approximately $1.0 million on the grant date. The value of these awards may change based on fluctuations in our stock price.

        We maintain "all-risk" property and rental value coverage (including coverage regarding the perils of flood, earthquake and terrorism) within two property insurance portfolios and liability insurance. The first property portfolio maintains a blanket limit of $750.0 million per occurrence, including terrorism, for the majority of the New York City properties in our portfolio. This policy expires on December 31, 2012. The second portfolio maintains a limit of $700.0 million per occurrence, including terrorism, for some New York City properties and the

118

SL Green Realty Corp.

Notes to Consolidated Financial Statements (Continued)

December 31, 2011

16. Commitments and Contingencies (Continued)

majority of the Suburban properties. The second property policy expires on December 31, 2012. Additional coverage may be purchased on a stand-alone basis for certain assets. We maintain liability policies which cover all our properties and provide limits of $201.0 million per occurrence and in the aggregate per location. The liability policies expire on October 31, 2012.

        In October 2006, we formed a wholly-owned taxable REIT subsidiary, Belmont Insurance Company, or Belmont, to act as a captive insurance company and be one of the elements of our overall insurance program. Belmont was formed in an effort to, among other reasons, stabilize to some extent the fluctuations of insurance market conditions. Belmont is licensed in New York to write Terrorism, NBCR (nuclear, biological, chemical, and radiological), General Liability, Environmental Liability and D&O coverage. Belmont has purchased reinsurance to reinsure the retained insurance risks not covered by other insurance.

        Belmont is a form of self-insurance. We are responsible for the liquidity and capital resources of Belmont and its accounts are included in our consolidated financial statements. All losses required to be paid by Belmont are recorded as losses by us.

        Belmont had loss reserves of approximately $6.4 million and $6.1 million as of December 31, 2011 and 2010, respectively.

        In March 1998, we acquired an operating sub-leasehold position at 420 Lexington Avenue. The operating sub-leasehold position required annual ground lease payments totaling $6.0 million and sub-leasehold position payments totaling $1.1 million (excluding an operating sub-lease position purchased in January 1999). In June 2007, we renewed and extended the maturity date of the ground lease at 420 Lexington Avenue through December 31, 2029, with an option for further extension through 2080. Ground lease rent payments through 2029 will total approximately $10.9 million per year. Thereafter, the ground lease will be subject to a revaluation by the parties thereto.

        In June 2009, we acquired an operating sub-leasehold position at 420 Lexington Avenue for approximately $7.7 million. These sub-leasehold positions were scheduled to mature in December 2029. In October 2009, we acquired the remaining sub-leasehold position for $7.6 million.

        The property located at 711 Third Avenue operates under an operating sub-lease, which expires in 2083. Under the sub-lease, we were responsible for ground rent payments of $1.55 million annually through July 2011 on the 50% portion of the fee we do not own. The ground rent was reset in July 2011. Following the reset, we are responsible for ground rent payments of $5.25 million annually through July 2016 and then $5.5 million annually thereafter on the 50% portion of the fee we do not own.

        The property located at 461 Fifth Avenue operates under a ground lease (approximately $2.1 million annually) with a term expiration date of 2027 and with two options to renew for an additional 21 years each, followed by a third option for 15 years. We also have an option to purchase the ground lease for a fixed price on a specific date.

        The property located at 625 Madison Avenue operates under a ground lease (approximately $4.6 million annually) with a term expiration date of 2022 and with two options to renew for an additional 23 years.

        The property located at 1185 Avenue of the Americas operates under a ground lease (approximately $6.9 million annually) with a term expiration of 2020 and with an option to renew for an additional 23 years.

        In April 1988, the SL Green predecessor entered into a lease agreement for the property at 673 First Avenue, which has been capitalized for financial statement purposes. Land was estimated to be approximately 70% of the fair market value of the property. The portion of the lease attributed to land is classified as an operating lease

119

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Notes to Consolidated Financial Statements (Continued)

December 31, 2011

16. Commitments and Contingencies (Continued)

and the remainder as a capital lease. The initial lease term is 49 years with an option for an additional 26 years. Beginning in lease years 11 and 25, the lessor is entitled to additional rent as defined by the lease agreement.

        We continue to lease the property located at 673 First Avenue, which has been classified as a capital lease with a cost basis of $12.2 million and cumulative amortization of $6.0 million and $5.8 million at December 31, 2011 and 2010, respectively.

        The following is a schedule of future minimum lease payments under capital leases and non-cancellable operating leases with initial terms in excess of one year as of December 31, 2011 (in thousands):

December 31,	Capital lease			Non-cancellable operating leases
2012	$	1,555		$	33,429
2013		1,555			33,429
2014		1,555			33,429
2015		1,592			33,429
2016		1,707			33,533
Thereafter		42,351			615,450
Total minimum lease payments		50,315		$	782,699
Less amount representing interest		(33,203	)
Present value of net minimum lease payments	$	17,112

17. Financial Instruments: Derivatives and Hedging

        We recognize all derivatives on the balance sheet at fair value. Derivatives that are not hedges must be adjusted to fair value through earnings. If a derivative is a hedge, depending on the nature of the hedge, changes in the fair value of the derivative will either be offset against the change in fair value of the hedged asset, liability, or firm commitment through earnings, or recognized in other comprehensive income until the hedged item is recognized in earnings. The ineffective portion of a derivative's change in fair value will be immediately recognized in earnings. Reported net income and equity may increase or decrease prospectively, depending on future levels of interest rates and other variables affecting the fair values of derivative instruments and hedged items, but will have no effect on cash flows.

        The following table summarizes the notional and fair value of our derivative financial instruments and foreign currency hedges at December 31, 2011 based on Level 2 information pursuant to ASC 810-10. The notional value is an indication of the extent of our involvement in these instruments at that time, but does not represent exposure to credit, interest rate or market risks (in thousands).

	Notional Value		Strike Rate	Effective Date		Expiration Date		Fair Value
Interest Rate Cap	$	110,180	6.000%		2/2011		2/2012	$	—
Interest Rate Cap	$	139,672	5.000%		1/2011		1/2012	$	—
Interest Rate Swap	$	30,000	2.295%		7/2010		6/2016	$	(1,716	)
Currency Hedge	$	20,748	1.55185GBP-USD		9/2010		12/2012	$	(151	)

        The currency hedge and certain interest rate caps are not designated as a hedging instrument and changes in the value are marked to market through earnings.

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SL Green Realty Corp.

Notes to Consolidated Financial Statements (Continued)

December 31, 2011

17. Financial Instruments: Derivatives and Hedging (Continued)

        On December 31, 2011, the derivative instruments were reported as an obligation at their fair value of approximately $1.9 million. This is included in Other Liabilities on the consolidated balance sheet at December 31, 2011. Included in Accumulated Other Comprehensive Loss at December 31, 2011 was approximately $18.0 million from the settlement of hedges, which are being amortized over the remaining term of the related mortgage obligation, and active hedges in addition to our share of joint venture accumulated other comprehensive loss of approximately $17.4 million. Currently, all of our designated derivative instruments are effective hedging instruments.

        In March 2010, we terminated forward swaps which resulted in a net loss of approximately $19.5 million from the settlement of the hedges. This payment is included in financing activities in the statement of cash flows. This loss will be amortized over the 10-year term of the related financing. This loss is included in the $18.0 million balance noted above. The balance in accumulated other comprehensive loss relating to derivatives was $35.4 million and $32.3 million at December 31, 2011 and 2010, respectively.

        Over time, the realized and unrealized gains and losses held in Accumulated Other Comprehensive Loss will be reclassified into earnings as a reduction to interest expense in the same periods in which the hedged interest payments affect earnings. We estimate that approximately $1.7 million of the current balance held in Accumulated Other Comprehensive Income will be reclassified into earnings within the next 12 months.

        We are hedging exposure to variability in future cash flows for forecasted interest payments in addition to anticipated future interest payments on existing debt.

        The following table presents the effect of our derivative financial instruments and our share of our joint venture's derivative financial instruments on the Statements of Income as of December 31, 2011, 2010 and 2009 (in thousands):

		Amount of (Loss) or Gain Recognized in Other Comprehensive Loss (Effective Portion) For the Year Ended December 31,									Amount of (Loss) or Gain Reclassified from Accumulated Other Comprehensive Loss into Interest Expense/ Equity in net income of unconsolidated joint ventures (Effective Portion) For the Year Ended December 31,									Amount of (Loss) or Gain Recognized in Interest Expense (Ineffective Portion) For the Year Ended
Designation\Cash Flow	Derivative	2011			2010			2009			2011			2010			2009			2011			2010			2009
Qualifying	Interest Rate Swaps/Caps	$	(16,049	)	$	(17,619	)	$	(15,560	)	$	(12,625	)	$	(12,661	)	$	(12,293	)	$	(16	)	$	(1,329	)	$	(1	)
Non-qualifying	Interest Rate Caps/Currency Hedges		—			—			—			—			—			—		$	(82	)		—			—

18. Environmental Matters

        Our management believes that the properties are in compliance in all material respects with applicable Federal, state and local ordinances and regulations regarding environmental issues. Management is not aware of any environmental liability that it believes would have a materially adverse impact on our financial position, results of operations or cash flows. Management is unaware of any instances in which it would incur significant environmental cost if any of the properties were sold.

121

SL Green Realty Corp.

Notes to Consolidated Financial Statements (Continued)

December 31, 2011

19. Segment Information

        We are a REIT engaged in owning, managing, leasing, acquiring and repositioning commercial office and retail properties in the New York Metropolitan area and have two reportable segments, real estate and debt and preferred equity investments. We evaluate real estate performance and allocate resources based on earnings contribution to income from continuing operations.

        Our real estate portfolio is primarily located in the geographical markets of the New York Metropolitan area. The primary sources of revenue are generated from tenant rents and escalations and reimbursement revenue. Real estate property operating expenses consist primarily of security, maintenance, utility costs, real estate taxes and ground rent expense (at certain applicable properties). See Note 5 for additional details on our debt and preferred equity investments.

        Selected results of operations for the years ended December 31, 2011, 2010 and 2009, and selected asset information as of December 31, 2011 and 2010, regarding our operating segments are as follows (in thousands):

	Real Estate Segment		Debt and Preferred Equity Segment			Total Company
Total revenues
Year ended:
December 31, 2011	$	1,143,010	$	120,418		$	1,263,428
December 31, 2010		936,460		147,926			1,084,386
December 31, 2009		912,753		65,608			978,361
Income from continuing operations before equity in net gain on sale of unconsolidated joint venture/ partial interest and purchase price fair value adjustments:
Year ended:
December 31, 2011	$	22,890	$	101,254		$	124,144
December 31, 2010		27,101		120,585			147,686
December 31, 2009		154,156		(89,659	)		64,497
Total assets
As of:
December 31, 2011	$	12,490,502	$	993,350		$	13,483,852
December 31, 2010		10,330,043		970,251			11,300,294

        Income from continuing operations represents total revenues less total expenses for the real estate segment and total investment income less allocated interest expense for the debt and preferred equity segment. Interest costs for the debt and preferred equity segment are imputed assuming 100% leverage at our 2011 revolving credit facility borrowing cost. We also allocate loan loss reserves to the debt and preferred equity segment. We do not allocate marketing, general and administrative expenses and transaction related costs (approximately $85.7 million, $87.8 million and $74.0 million for the years ended December 31, 2011, 2010 and 2009, respectively) to the debt and preferred equity segment since we base performance on the individual segments prior to allocating marketing, general and administrative expenses. All other expenses, except interest, relate entirely to the real estate assets.

        There were no transactions between the above two segments.

122

SL Green Realty Corp.

Notes to Consolidated Financial Statements (Continued)

December 31, 2011

19. Segment Information (Continued)

        The table below reconciles income from continuing operations to net income attributable to SL Green common stockholders for the years ended December 31, 2011, 2010 and 2009 (in thousands):

	Years ended December 31,
	2011			2010			2009
Income from continuing operations before equity in net gain on sale of unconsolidated joint venture/ partial interest and purchase price fair value adjustments	$	124,144		$	147,686		$	64,497
Equity in net gain on sale of interest in unconsolidated joint venture/ real estate		2,918			128,921			6,691
Purchase price fair value adjustment		498,195			—			—
Income from continuing operations		625,257			276,607			71,188
Net income from discontinued operations		5,780			7,064			7,318
Gain (loss) on sale of discontinued operations		46,085			35,485			(6,841	)
Net income		677,122			319,156			71,665
Net income attributable to noncontrolling interests in operating partnership		(14,629	)		(4,574	)		(1,221	)
Net income attributable to noncontrolling interests in other partnerships		(15,083	)		(14,007	)		(12,900	)
Net income attributable to SL Green		647,410			300,575			57,544
Preferred stock dividends		(30,178	)		(29,749	)		(19,875	)
Net income attributable to SL Green common stockholders	$	617,232		$	270,826		$	37,669

20. Supplemental Disclosure of Non-Cash Investing and Financing Activities

        The following table provides information on non-cash investing and financing activities (in thousands):

	Years ended December 31,
	2011		2010
Issuance of common stock as deferred compensation	$	699	$	537
Issuance of units in the operating partnership		62,443
Redemption of units in the operating partnership		865		12,091
Derivative instruments at fair value		1,870		15,299
Assignment of debt investment to joint venture		286,571		—
Mortgage assigned to joint venture		30,000		—
Tenant improvements and capital expenditures payable		3,990		1,981
Debt and preferred equity and other investments acquired		—		30,000
Other non-cash adjustments-investing		—		302,187
Fair value adjustment to noncontrolling interest in operating partnership		39,040		18,948
Accrued acquisition liabilities		34,500		—
Assumption of mortgage loans		943,767		803,921
Consolidation of real estate investments and other adjustments		1,156,929		—
Consolidation of real estate investments—noncontrolling interest in other partnerships		87,264		—
Deconsolidation of real estate investments—assets		—		60,783
Deconsolidation of real estate investments—liabilities		—		47,533

123

SL Green Realty Corp.

Notes to Consolidated Financial Statements (Continued)

December 31, 2011

21. Quarterly Financial Data (unaudited)

        We are providing updated summary selected quarterly financial information, which is reflective of the reclassification of the properties sold during 2011 as discontinued operations. Quarterly data for the last two years is presented in the tables below (in thousands).

2011 Quarter Ended	December 31			September 30			June 30			March 31
Total revenues	$	328,877		$	306,624		$	298,705		$	329,222
Income net of noncontrolling interests and before gains on sale		1,833			9,544			10,176			72,898
Equity in net gain (loss) on sale of interest in unconsolidated joint venture/ real estate		(114	)		3,032			—			—
Purchase price fair value adjustment		8,306			999			475,102			13,788
Loss on early extinguishment of debt		—			(67	)		971			—
Gain (loss) on investment in marketable securities		4,999			—			(6	)		(127	)
Depreciable real estate reserves		(5,789	)		—			—			—
Net income from discontinued operations		1,116			1,116			1,675			1,873
Gain on sale of discontinued operations		—			—			46,085			—
Net income attributable to SL Green		10,351			14,624			534,003			88,432
Preferred stock dividends		(7,543	)		(7,545	)		(7,545	)		(7,545	)
Net income attributable to SL Green common stockholders	$	2,808		$	7,079		$	526,458		$	80,887
Net income per common share—Basic	$	0.03		$	0.08		$	6.30		$	1.02
Net income per common share—Diluted	$	0.03		$	0.08		$	6.26		$	1.01

2010 Quarter Ended	December 31			September 30			June 30			March 31
Total revenues	$	262,785		$	319,149		$	251,684		$	250,768
Income (loss) net of noncontrolling interests and before gains on sale		14,563			81,340			16,687			20,674
Equity in net gain on sale of interest in unconsolidated joint venture/ real estate		1,633			520			126,769			—
Gain on early extinguishment of debt		—			(511	)		(1,276	)		(113	)
Gain (loss) on equity investment in marketable securities		775			—			—			(285	)
Depreciable real estate reserves		(2,750	)		—			—			—
Net income from discontinued operations		533			2,211			2,403			1,917
Gain on sale of discontinued operations		—			35,485			—			—
Net income attributable to SL Green		14,754			119,045			144,583			22,193
Preferred stock dividends		(7,545	)		(7,545	)		(7,545	)		(7,114	)
Net income attributable to SL Green common stockholders	$	7,209		$	111,500		$	137,038		$	15,079
Net income per common share—Basic	$	0.09		$	1.43		$	1.76		$	0.19
Net income per common share—Diluted	$	0.09		$	1.42		$	1.75		$	0.19

124

SL Green Realty Corp.

Notes to Consolidated Financial Statements (Continued)

December 31, 2011

22. Subsequent Events

        In October 2011, SL Green formed a joint venture with Stonehenge Partners and in January 2012 acquired five retail and two multifamily properties in Manhattan for $193.1 million. The residential component, which encompasses 488,000 square feet (unaudited), was financed with an aggregate 7-year $100.0 million fixed rate mortgage which bears interest at 4.125%. One of the retail properties was financed with a 5-year $8.5 million mortgage.

        In January 2012, SL Green formed a joint venture with Jeff Sutton and acquired 724 Fifth Avenue for $223.0 million. This 65,010 square foot (unaudited) property was financed with a 5-year $120.0 million floating rate mortgage which bears interest at 235 basis points over the 30-day LIBOR.

        In October 2011, we, along with our joint venture partner, Jeff Sutton, announced an agreement to sell two retail condominium units at 141 Fifth Avenue for $46 million. This transaction closed in February 2012.

        In December 2011, we entered into an agreement to acquire the 390,000 square foot (unaudited) office building located at 10 East 53^rd Street acquisition through a joint venture for $252.5 million. This transaction closed in February 2012.

        As of February 22, 2012, we sold approximately 661,500 shares of our common stock through the at-the-money program for aggregate gross proceeds of $50.7 million ($49.9 million of net proceeds after related expenses).

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SL Green Realty Corp.
Schedule II—Valuation and Qualifying Accounts
December 31, 2011
(Dollars in thousands)

Column A	Column B		Column C		Column D			Column E
Description	Balance at Beginning of Year		Additions Charged Against Operations		Uncollectible Accounts Written-off			Balance at End of Year
Year Ended December 31, 2011
Tenant and other receivables—allowance	$	12,981		4,537		(746	)	$	16,772
Deferred rent receivable—allowance	$	30,834		6,638		(8,316	)	$	29,156
Year Ended December 31, 2010
Tenant receivables—allowance	$	14,271		2,165		(3,455	)	$	12,981
Deferred rent receivable—allowance	$	24,347		3,138		3,349		$	30,834
Year Ended December 31, 2009
Tenant receivables—allowance	$	16,898		1,006		(3,633	)	$	14,271
Deferred rent receivable—allowance	$	19,648		6,467		(1,768	)	$	24,347

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SL Green Realty Corp.
Schedule III—Real Estate And Accumulated Depreciation
December 31, 2011
(Dollars in thousands)

Column A	Column B		Column C Initial Cost				Column D Cost Capitalized Subsequent To Acquisition						Column E Gross Amount at Which Carried at Close of Period						Column F		Column G		Column H		Column I
Description	Encumbrances		Land		Building & Improvements		Land			Building & Improvements			Land		Building & Improvements		Total		Accumulated Depreciation		Date of Construction		Date Acquired		Life on Which Depreciation is Computed
673 First Ave(1)	$	29,906	$	—	$	35,727	$	—		$	10,882		$	—	$	46,609	$	46,609	$	17,091		1928		8/1997	Various
420 Lexington Ave(1)		187,182		—		107,832		—			120,447			—		228,279		228,279		67,823		1927		3/1998	Various
711 Third Avenue(1)		120,000		19,844		42,499		—			30,273			19,844		72,772		92,616		23,228		1955		5/1998	Various
555 W. 57th Street(1)		—		18,846		78,704		—			35,197			18,846		113,901		132,747		36,170		1971		1/1999	Various
317 Madison Ave(1)		—		21,205		85,559		—			28,227			21,205		113,786		134,991		41,912		1920		6/2001	Various
220 East 42nd Street(1)		190,431		50,373		203,727		635			35,937			51,008		239,664		290,672		56,526		1929		2/2003	Various
461 Fifth Avenue(1)		—		—		62,695		—			5,764			—		68,459		68,459		15,211		1988		10/2003	Various
750 Third Avenue(1)		—		51,093		205,972		—			28,846			51,093		234,818		285,911		47,037		1958		7/2004	Various
625 Madison Ave(1)		129,098		—		246,673		—			23,275			—		269,948		269,948		52,379		1956		10/2004	Various
485 Lexington Avenue(1)		450,000		77,517		326,825		765			80,013			78,282		406,838		485,120		83,879		1956		12/2004	Various
609 Fifth Avenue(1)		94,963		36,677		145,954		—			2,824			36,677		148,778		185,455		20,577		1925		6/2006	Various
1 Madison Avenue(1)		626,740		172,641		654,394		905			11,689			173,546		666,083		839,629		73,750		1960		8/2007	Various
331 Madison Avenue(1)		—		14,763		65,241		(2,630	)		(12,127	)		12,133		53,114		65,247		7,117		1923		4/2007	Various
333 West 34th Street(1)		—		36,711		146,880		—			20,808			36,711		167,688		204,399		19,038		1954		6/2007	Various
120 West 45th Street(1)		170,000		60,766		250,922		—			8,703			60,766		259,625		320,391		34,951		1998		1/2007	Various
810 Seventh Avenue(1)		—		114,077		476,386		—			32,510			114,077		508,896		622,973		68,408		1970		1/2007	Various
919 Third Avenue(1)(5)		500,000		223,529		1,033,198		35,410			6,647			258,939		1,039,845		1,298,784		132,047		1970		1/2007	Various
1185 Avenue of the Americas(1)		—		—		728,213		—			24,707			—		752,920		752,920		106,686		1969		1/2007	Various
180 Maiden Lane(1)(8)		279,332		132,697		309,627		—			—			132,697		309,627		442,324		1,097		1984		11/2011	Various
1350 Avenue of the Americas(1)		—		91,038		380,744		—			16,870			91,038		397,614		488,652		53,948		1966		1/2007	Various
100 Church Street(1)		—		32,494		79,996		—			43,305			32,494		123,301		155,795		8,323		1959		1/2010	Various
125 Park Avenue(1)		146,250		120,900		189,714		—			14,401			120,900		204,115		325,015		9,547		1923		10/2010	Various
2 Herald Square(7)		191,250		92,655		—		100,633			—			193,288		—		193,288		—		—		12/2010	Various
885 Third Avenue(7)		267,650		131,766		—		110,771			—			242,537		—		242,537		—		—		12/2010	Various
292 Madison Avenue(7)		59,099		23,803		—		(23,803	)		—			—		—		—		—		—		12/2010	Various
Williamsburg		—		3,677		14,708		2,523			(4,550	)		6,200		10,158		16,358		299		2010		12/2010	Various
521 Fifth Avenue(1)(8)		150,000		110,100		146,686		—			3,742			110,100		150,428		260,528		7,192		1929		1/2011	Various
1515 Broadway(1)		450,363		462,700		707,938		1,145			15,028			463,845		722,966		1,186,811		15,037		1972		4/2011	Various
110 East 42nd Street(1)		65,000		34,000		46,411		—			479			34,000		46,890		80,890		1,217		1921		5/2011	Various
51 East 42nd Street(1)				24,465		57,086		—			—			24,465		57,086		81,551		119		1913		11/2011	Various
1100 King Street—1-7 International Drive(2)		—		49,392		104,376		2,473			6,090			51,865		110,466		162,331		17,389		1983/1986		1/2007	Various
520 White Plains Road(2)		—		6,324		26,096		—			2,477			6,324		28,573		34,897		4,477		1979		1/2007	Various
115-117 Stevens Avenue(2)		—		5,933		23,826		—			5,058			5,933		28,884		34,817		4,687		1984		1/2007	Various
100 Summit Lake Drive(2)		—		10,526		43,109		—			5,292			10,526		48,401		58,927		6,938		1988		1/2007	Various
200 Summit Lake Drive(2)		—		11,183		47,906		—			2,241			11,183		50,147		61,330		7,215		1990		1/2007	Various
500 Summit Lake Drive(2)		—		9,777		39,048		—			3,834			9,777		42,882		52,659		5,355		1986		1/2007	Various
140 Grand Street(2)		—		6,865		28,264		—			2,982			6,865		31,246		38,111		4,443		1991		1/2007	Various
360 Hamilton Avenue(2)		—		29,497		118,250		—			10,502			29,497		128,752		158,249		17,222		2000		1/2007	Various
1-6 Landmark Square(3)		86,000		50,947		195,167		—			14,643			50,947		209,810		260,757		27,925		1973-1984		1/2007	Various
7 Landmark Square(3)		—		2,088		7,748		(367	)		(155	)		1,721		7,593		9,314		16		2007		1/2007	Various
300 Main Street(3)		11,500		3,025		12,889		—			1,164			3,025		14,053		17,078		2,012		2002		1/2007	Various
680 Washington Boulevard(3)(6)		—		11,696		45,364		—			3,900			11,696		49,264		60,960		6,594		1989		1/2007	Various
750 Washington Boulevard(3)(6)		—		16,916		68,849		—			3,800			16,916		72,649		89,565		9,892		1989		1/2007	Various
1010 Washington Boulevard(3)		—		7,747		30,423		—			3,203			7,747		33,626		41,373		4,466		1988		1/2007	Various
1055 Washington Boulevard(3)		—		13,516		53,228		—			1,675			13,516		54,903		68,419		7,419		1987		6/2007	Various
500 West Putnam Avenue(3)		24,563		11,210		44,782		—			3,503			11,210		48,285		59,495		6,104		1973		1/2007	Various
150 Grand Street(2)		—		1,371		5,446		—			9,278			1,371		14,724		16,095		37		1962		1/2007	Various
400 Summit Lake Drive(2)		—		38,889		—		285			—			39,174		—		39,174		—		—		1/2007	Various
125 Chubb Way(4)		—		5,884		25,958		—			16,244			5,884		42,202		48,086		315		2008		1/2008	Various
Other(6)		—		1,130		—		3,628			31,857			4,758		31,857		36,615		3,488		—		—	Various
Total	$	4,229,327	$	2,452,253	$	7,751,040	$	232,373		$	711,485		$	2,684,626	$	8,462,525	$	11,147,151	$	1,136,603

⁽¹⁾

Property located in New York, New York.

⁽²⁾

Property located in Westchester County, New York.

⁽³⁾

Property located in Connecticut.

⁽⁴⁾

Property located in New Jersey.

⁽⁵⁾

We own a 51% interest in this property.

⁽⁶⁾

Other includes tenant improvements at eEmerge, capitalized interest and corporate improvements.

⁽⁷⁾

See Note 4 to the consolidated financial statements.

⁽⁸⁾

We own a 49.9% interest in this property.

127

SL Green Realty Corp.
Schedule III—Real Estate And Accumulated Depreciation
December 31, 2011
(Dollars in thousands)

The changes in real estate for the three years ended December 31, 2011 are as follows:

	2011			2010			2009
Balance at beginning of year	$	8,890,064		$	8,257,100		$	8,201,789
Property acquisitions		2,276,308			703,721			16,059
Improvements		162,875			97,099			92,117
Retirements/disposals/deconsolidation		(182,096	)		(167,856	)		(52,865	)
Balance at end of year	$	11,147,151		$	8,890,064		$	8,257,100

        The aggregate cost of land, buildings and improvements, before depreciation, for Federal income tax purposes at December 31, 2011 was approximately $7.8 billion.

        The changes in accumulated depreciation, exclusive of amounts relating to equipment, autos, and furniture and fixtures, for the three years ended December 31, 2011, are as follows:

	2011			2010			2009
Balance at beginning of year	$	916,293		$	738,422		$	546,545
Depreciation for year		245,421			209,472			210,436
Retirements/disposals/deconsolidation		(25,111	)		(31,601	)		(18,559	)
Balance at end of year	$	1,136,603		$	916,293		$	738,422

128

Report of Independent Registered Public Accounting Firm

The Stockholders and Board of Directors of
Rock-Green, Inc.

        We have audited the accompanying consolidated statement of income, changes in equity and cash flows of Rock-Green, Inc. (the "Company") for the year ended December 31, 2009. These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on these financial statements based on our audit.

        We conducted our audit in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. We were not engaged to perform an audit of the Company's internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

        In our opinion, the financial statements referred to above present fairly, in all material respects, the consolidated results of Rock-Green, Inc.'s operations and its cash flows for the year ended December 31, 2009 in conformity with U.S. generally accepted accounting principles.

/s/ Ernst & Young LLP

New York, New York
February 16, 2010

129

Rock-Green, Inc.

Consolidated Statements of Income

(Dollars in thousands)

	Period January 1 to April 30,			Year Ended December 31,
	2010			2009
	(unaudited)
Rental Revenues:
Fixed, percentage and consideration revenues	$	41,850		$	128,998
Operating and real estate tax escalations		7,193			23,296
Rental revenues—related parties		1,630			3,676
Total Rental Revenues		50,673			155,970
Sales of services		3,336			9,890
Sales of services—related parties		106			306
Total Revenues		54,115			166,166
Operating Expenses:
Real estate taxes		11,918			34,619
Building operating expenses		7,320			23,291
Building operating expenses—related parties		3,139			9,448
Cost of service sales		2,171			6,568
Cost of service sales—related parties		54			157
Total Operating Expenses		24,602			74,083
Gross Operating Profit		29,513			92,083
Other Operating Expense (Income):
Interest expense		1,741			5,459
Interest income		(29	)		(147	)
Depreciation expense		1,762			5,318
Amortization expense		3,553			10,793
General and administrative expense (income)		(31	)		151
Other income		—			(240	)
Income before provision for taxes		22,517			70,749
Provision (benefit) for taxes		—			1
Net Income	$	22,517		$	70,748

130

Rock-Green, Inc.

Consolidated Statements of Changes in Equity

Period January 1 to April 30, 2010 (unaudited) and Year ended December 31, 2009

(Dollars in thousands)

	Total			Common Stock		Preferred Stock		Additional Paid-in Capital		Accumulated Other Comprehensive Income (Loss)			Retained Earnings
Balances at December 31, 2008	$	97,502		$	4	$	125	$	64,887	$	(4,213	)	$	36,699
Net income for the year		70,748			—		—		—		—			70,748
Other comprehensive income		1,566			—		—		—		1,566			—
Total comprehensive income		72,314			—		—		—		—			—
Dividend		(89,016	)		—		—		—		—			(89,016	)
Balances at December 31, 2009		80,800			4		125		64,887		(2,647	)		18,431
Net income for the year		22,517			—		—		—		—			22,517
Other comprehensive income		562			—		—		—		562			—
Total comprehensive income		23,079			—		—		—		—			—
Dividend		(17,715	)		—		—		—		—			(17,715	)
Balances at April 30, 2010 (unaudited)	$	86,164		$	4	$	125	$	64,887	$	(2,085	)	$	23,233

131

Rock-Green, Inc.

Consolidated Statements of Cash Flows

(Dollars in thousands)

	Period January 1 to April 30,			Year Ended December 31,
	2010			2009
	(unaudited)
Cash Flows from Operating Activities:
Net income	$	22,517		$	70,748
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		5,315			16,111
Accretion of interest		50			139
Deferred rents receivable, net		2,608			5,805
Changes in certain assets and liabilities		(5,394	)		5,398
Increase (decrease) due to related parties, net		(4,166	)		1,980
Net cash provided by operating activities		20,930			100,181
Cash Flows from Investing Activities:
Capital expenditures		(1,212	)		(2,968	)
Deferred expenses paid		(19	)		(7,506	)
Net cash used by investing activities		(1,231	)		(10,474	)
Cash Flows from Financing Activities:
Dividend distributions		(17,715	)		(89,016	)
Net increase in cash and cash equivalents		1,984			691
Cash and cash equivalents, beginning of period		41,589			40,898
Cash and cash equivalents, end of period	$	43,573		$	41,589
Supplemental disclosures of cash flow information:
Cash paid during the year for:
Interest expense	$	1,158		$	4,893

132

Rock-Green, Inc.

Notes to the Consolidated Financial Statements

1. Organization

        Rock-Green, Inc., (the "Company") a New York State corporation, was 55% owned by Rockefeller Group International, Inc. (RGII) and 45% owned by Green Hill Acquisition, LLC, a wholly owned subsidiary of SL Green Realty Corp. The Company owned and operated a 2.5 million square foot office building (the "Property") known as the McGraw-Hill Building located at 1221 Avenue of the Americas, New York, New York. In addition, the Company owned two adjacent properties totaling approximately 17,000 square feet. In May 2010, Green Hill Acquisition, LLC sold its 45% interest to Canada Pension Plan Investment Board (CPPIB) REI US RE-5, Inc.

2. REIT Election

        The Company made an election to qualify as a REIT under the Tax Code for the taxable year ending December 31, 2004 and for all subsequent years.

        The Company had historically been subject to taxes as a C corporation. The Company elected to be taxed as a REIT, commencing with its taxable year ending December 31, 2004, upon the filing of its federal income tax return for that year. Qualification and taxation as a REIT depends upon the Company's ability to satisfy various asset, income and distribution requirements on a continuing basis. The Company believes that its organizational and operational structure as well as its intended distributions will enable it to qualify as a REIT and maintain such status in the future. As a REIT, the Company is entitled to a deduction for dividends that it pays and therefore is not subject to federal income tax on its taxable income that is currently distributed to its shareholders.

        The Company has formed a wholly owned subsidiary to provide certain services to tenants. The subsidiary is subject to tax on income earned from these services.

        In order to enable the Company to qualify as a REIT in 2004, the Company was required to pay a dividend of its accumulated Earnings & Profits by the end of 2003. Accordingly, the Company paid a dividend of $230 million, which it believes to be sufficient to meet this requirement.

        Also to satisfy ownership requirements for a REIT, the Company issued 125 shares of $1,000 par value non-voting preferred stock. These shareholders are entitled to receive dividends semiannually at a per annum rate equal to 12.5% of the liquidation value of $1,000 per share. This preferred stock is redeemable by the Company for $1,000 per share, plus accumulated and unpaid dividends and includes a redemption premium if the stock is redeemed before the year 2009.

        As a REIT, the Company will be subject to corporate level tax ("built-in gains tax") on any appreciated property (i.e., property whose fair market value exceeds its adjusted tax basis as of the date of conversion) that it owned as of the date of conversion to a REIT if such property is disposed of in a taxable transaction at any time through 2013. The built-in gains tax applies to that portion of the gain equal to the excess of the fair market value of the property over its tax basis as of the date of conversion. The Company does not intend to enter into any taxable sale of its property during this period.

3. Basis of Presentation and Significant Accounting Policies

(a) Principles of consolidation

        The consolidated financial statements include accounts of the Company and its subsidiaries, all of which are wholly-owned by the Company. All significant intercompany balances and transactions have been eliminated.

133

Rock-Green, Inc.

Notes to the Consolidated Financial Statements (Continued)

3. Basis of Presentation and Significant Accounting Policies (Continued)

(b) Revenue recognition

        The Company accounts for all leases as operating leases. Deferred rents receivable, net, including free rental periods and lease arrangements allowing for increasing base rental payments, are accounted for in a manner that provides an even amount of fixed lease revenues over the respective lease terms.

        Differences between rental income recognized and amounts due per the respective lease agreements are credited or charged, as applicable, to deferred rents receivable. The Company reduced rents by $2,608,000 and $5,805,000 over amounts contractually due pursuant to tenant lease terms for the period January 1 to April 30, 2010 (unaudited) and for the year ended December 31, 2009, respectively.

(c) Use of estimates

        The preparation of financial statements in conformity with US generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates.

(d) Accounting for derivative instruments and hedging activities

        All derivative instruments are recorded on the balance sheet at fair value. Changes in fair value of derivatives are recorded each period in current earnings or other comprehensive income, depending on whether the derivative is designated as part of a hedge transaction.

        For cash-flow hedge transactions in which the Company is hedging the variability of cash flows related to a variable-rate asset, liability, or a forecasted transaction, changes in fair value of the derivative instrument are reported in other comprehensive income (loss). The gains and losses on the derivative instrument that are reported in other comprehensive income (loss) are reclassified to earnings in the periods in which earnings are impacted by the variability of the cash flows of the hedged item. The ineffective portion of the change in the fair value of the derivative is recognized directly in earnings.

(e) Concentration of Company's revenue and credit risk

        Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of cash investments in excess of insured amounts and tenant receivables. The Company places its cash investments with high quality financial institutions. Management of the Company performs ongoing credit evaluations of its tenants and requires certain tenants to provide security deposits. Although these security deposits are insufficient to meet the terminal value of a tenant's lease obligation, they are a measure of good faith and a source of funds to offset the economic costs associated with lost rent and the costs associated with releasing the space.

4. Asset Retirement Obligation

        A conditional asset retirement obligation ("CARO") is an obligation that is settled at the time an asset is retired or disposed of and for which the timing and/or method of settlement are conditional on future events. A CARO must be recorded if the liability can be reasonably estimated. Management has reasonably estimated the liability to remediate asbestos which exists in certain limited areas of the Property.

134

Rock-Green, Inc.

Notes to the Consolidated Financial Statements (Continued)

4. Asset Retirement Obligation (Continued)

        The changes in the carrying amount of the asset retirement obligation are as follows:

($000s)	2009
Asset retirement obligation at January 1	$	3,088
Change in estimates, net		—
Payments during the year		(532	)
Accretion of interest		139
Asset retirement obligation at December 31		2,695
Less current		—
Non-current	$	2,695

        The above asset retirement obligations at December 31, 2009 are reflected in accounts payable and accrued expenses and other non-current liabilities in the accompanying consolidated balance sheet. The accretion of interest for the period January 1 to April 30, 2010 (unaudited) and the year ended December 31, 2009 are reflected in interest expense in the accompanying consolidated statements of income. Management estimated that the asbestos remediation will be completed by 2019.

5. Loan Payable

        The Company had a $170 million loan with a financial institution with a maturity date of December 23, 2010. The Loan bears interest at the option of the Company at the Adjusted Eurodollar Rate (Eurodollar Rate plus a margin) or the Adjusted Base Rate (Base Rate plus a margin, with Base Rate defined as the greater of Federal Fund Rate plus a margin or the Prime Rate). Interest is due on the outstanding principal balance in arrears. The loan carried an average interest rate of 2.73% and 2.88% during the period January 1 to April 30, 2010 (unaudited) and 2009, respectively, and requires periodic interest payments. The interest rate at April 30, 2010 (unaudited) and December 31, 2009 was 1.03% and 1.0%, respectively. Total interest expense under this loan was $1,548,000 during the period January 1 to April 30, 2010 (unaudited) and $4,899,000 in 2009, and is included in interest expense in the accompanying consolidated statements of income. The entire outstanding principal balance is payable on the maturity date.

        During 2005, the Company entered into a $30 million interest rate swap agreement with a bank to hedge $30 million of the $170 million loan. This transaction protects the Company from volatility in interest expense on the hedged portion by effectively fixing the interest rate at 5.56% for the remaining term of the loan. The fair market value of this interest rate swap agreement, which was a liability of $1,236,000 at December 31, 2009, is recorded on the accompanying consolidated balance sheets in other current liabilities and accumulated other comprehensive income / (loss). Over time, the realized and unrealized gains and losses held in accumulated other comprehensive income / (loss) will be reclassified into earnings as an increase or reduction to interest expense in the same periods in which the hedged interest payments affect earnings. The Company estimates that the amount of the losses on the derivative instruments reported in other comprehensive income that will be re-classified into earnings within the next 12 months through an increase in interest expense will be $1,236,000.

        During 2006, the Company entered into an additional $35 million interest rate swap agreement with a bank to hedge an additional $35 million of the $170 million loan. This transaction protects the Company from volatility in interest expense on the hedged portion by effectively fixing the interest rate at 5.47% for the term of the loan. The fair market value of this interest rate swap agreement, which was a liability of $1,410,000 at December 31, 2009, is recorded on the accompanying consolidated balance sheet in other current liabilities and accumulated

135

Rock-Green, Inc.

Notes to the Consolidated Financial Statements (Continued)

5. Loan Payable (Continued)

other comprehensive income / (loss). Over time, the realized and unrealized gains and losses held in accumulated other comprehensive income / (loss) will be reclassified into earnings as an increase or reduction to interest expense in the same periods in which the hedged interest payments affect earnings. The Company estimates that the amount of the losses on the derivative instruments reported in other comprehensive income that will be re-classified into earnings within the next 12 months through an increase in interest expense will be $1,410,000.

6. Provision for Taxes

        The Company has made an election to be taxed as a REIT under the Tax Code. As a REIT, the Company generally is not subject to federal income tax provided the Company has no taxable income after its dividends paid deduction, except for taxes on income earned by its taxable REIT subsidiary. To maintain qualification as a REIT, the Company must distribute at least 90% of its REIT taxable income to its stockholders and meet certain other requirements.

        The provision for income taxes is summarized as follows:

($000s)	2010		2009
	(unaudited)
Current:
Federal	$	—	$	—
State and local taxes		—		1
Total provision (benefit) for taxes	$	—	$	1

7. Tenant Leasing Arrangements (unaudited)

        The Company leases office, retail, and storage space to tenants in the Property through non-cancelable operating leases expiring through 2029. The leases require fixed minimum monthly payments over their terms and also adjustments to rent for the tenants' proportionate share of changes in certain costs and expenses of the building. Certain leases also provide for additional rent which is based upon a percentage of the sales of the lessee.

        Minimum future rentals from tenants under noncancelable operating leases as of April 30, 2010 are approximately as follows:

($000s)	Total		RGII and Related Subsidiaries
Year ending December 31:
2011	$	124,161	$	4,156
2012		123,837		2,063
2013		118,160		2,063
2014		88,117		2,072
2015		82,574		1,446
Thereafter		260,699		5,096
Total	$	797,548	$	16,896

136

Rock-Green, Inc.

Notes to the Consolidated Financial Statements (Continued)

7. Tenant Leasing Arrangements (unaudited) (Continued)

        Total minimum future rental income represents the base rent tenants are required to pay under the terms of their leases exclusive of charges for electric service, real estate taxes, and other escalations. Future rentals from three unrelated parties in the businesses of financial services, legal services, and publishing amount to approximately 66.4% of total minimum future rentals listed above. Rental income from these tenants amounted to approximately 56% and 52% of total rental revenues for the period January 1 to April 30, 2010 (unaudited) and the year ended December 31, 2009. These tenants' leases expire in 2018 and 2020. RGII's master lease expires on December 31, 2011, and an affiliate's lease expires on December 31, 2019.

        The Company recorded early termination revenue of $3,250,000 in 2010 (unaudited) and $9,750,000 in 2009, which is included in fixed, percentage and consideration revenue on the accompanying consolidated statements of income, due to the early terminations of certain tenants.

8. Related Party Transactions

        Rental revenues and sales of services included $1,736,000 and $3,982,000 from RGII and related subsidiaries for the period January 1 to April 30, 2010 (unaudited) and for the year ended December 31, 2009, respectively. Accounts receivable included $113,000 due from RGII at December 31, 2009, related primarily to operating and real estate tax escalation.

        The Company receives a number of management and operating services from RGII and its affiliates. Amounts included in operating expenses for these services were $3,139,000 and $9,448,000 for the period January 1 to April 30, 2010 (unaudited) and the year ended December 31, 2009, respectively. The management agreement remains in effect until March 31, 2020 and shall automatically be renewed for five successive 20-year periods.

        At December 31, 2009, the balance due to RGII affiliates amounted to $5,404,000 and consisted primarily of amounts for services performed by RGII affiliates.

        At December 31, 2009, the balance included in deferred rents receivable—net from RGII and related subsidiaries amounted to $710,000. In addition, the Company reduced rents by $182,000 from amounts contractually due pursuant to tenant lease terms for the years ended December 31, 2009.

9. Supplemental Cash Flow Information

Noncash operating, investing and financing activities:

        In 2009, the Company had net noncash additions to building and improvements and deferred costs of approximately $2.3 million and a decrease in the derivative liability of approximately $1.6 million. In conjunction with these additions, accounts payable and accrued expenses were increased for $2.3 million and other comprehensive income was decreased by approximately $1.6 million.

137

Rock-Green, Inc.

Notes to the Consolidated Financial Statements (Continued)

9. Supplemental Cash Flow Information (Continued)

Cash flows from changes in certain assets and liabilities:

        The cash flows from changes in certain assets and liabilities of the Company for the period January 1 to April 30, 2010 (unaudited) and for the year ended December 31, 2009 were as follows:

($000s)	2010			2009
	(unaudited)
Decrease (increase) in:
Accounts receivable, net	$	67		$	289
Prepaid expenses		(5,369	)		170
Other current assets		—			7
Investment in subsidiaries		—			(135	)
Other assets		168			107
Increase (decrease) in:
Accrued federal, state and local taxes		—			5
Other current liabilities		(3,171	)		6,561
Amortization of deferred financing costs		124			371
Other non-current liabilities		5			(67	)
Accounts payable and accrued expenses		2,782			(1,910	)
Total increase (decrease) in certain assets and liabilities	$	(5,394	)	$	5,398

10. Subsequent Events

        The Company has evaluated subsequent events through the date in which these consolidated financial statements were available for issuance on February 16, 2010.

138

Report of Independent Registered Public Accounting Firm

The Stockholders
1515 Broadway Realty Corp.

        We have audited the accompanying consolidated balance sheet of 1515 Broadway Realty Corp. (the "Company") as of December 31, 2010, and the related consolidated statements of income, equity (deficit) and cash flows for each of the two years in the period ended December 31, 2010. These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on these financial statements based on our audits.

        We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. We were not engaged to perform an audit of the Company's internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

        In our opinion, the financial statements referred to above present fairly, in all material respects, the consolidated financial position of 1515 Broadway Realty Corp. at December 31, 2010, and the consolidated results of their operations and their cash flows for each of the two years in the period ended December 31, 2010, in conformity with U.S. generally accepted accounting principles.

/s/ Ernst & Young LLP

New York, New York
February 2, 2011

139

1515 Broadway Realty Corp.

Consolidated Balance Sheets

(Dollars in thousands, except share and per share amounts)

Assets	December 31, 2010
Commercial real estate property, at cost:
Land	$	96,573
Building and improvements		459,225
		555,798
Less accumulated depreciation		(91,031	)
		464,767
Cash and cash equivalents		16,210
Restricted cash		3,037
Tenant receivables, net of allowance of $2,974		163
Deferred rent receivable, net of allowance of $515		32,748
Deferred costs, net		23,061
Other assets		4,491
Total assets	$	544,477
Liabilities and equity:
Mortgage note payable	$	462,897
Accrued interest and other liabilities		501
Accounts payable and accrued expenses		4,074
Due to related parties		596
Deferred revenue		523
Security deposits		1,232
Total liabilities		469,823
Equity:
Series A Preferred Stock, $1,000 par value, 290 shares authorized, 125 shares issued and outstanding		100
Series B Subordinated Preferred Stock, $1,000 par value, 10 shares authorized, none issued and outstanding		—
Class A Common Stock, $0.01 par value, 100 shares authorized, issued and outstanding		—
Additional paid-in capital		255,452
Distributions in excess of earnings		(181,529	)
Accumulated other comprehensive income		14
Noncontrolling interests		617
Total equity		74,654
Total liabilities and equity	$	544,477

The accompanying notes are an integral part of these consolidated financial statements.

140

1515 Broadway Realty Corp.

Consolidated Statements of Income

(Dollars in thousands)

	Year Ended December 31,
	2010			2009
Revenues:
Rental revenue	$	77,438		$	74,304
Escalation and reimbursement revenues		24,044			21,673
Investment income		32			4,780
Other income		13			98
Total revenues		101,527			100,855
Expenses:
Operating expenses		25,227			22,819
Asset management fee		100			100
Real estate taxes		20,016			18,981
Interest		21,398			10,733
Depreciation and amortization		14,570			15,201
Total expenses		81,311			67,834
Net income		20,216			33,021
Net income attributable to noncontrolling interest		—			—
Net income attributable to stockholders		20,216			33,021
Preferred stock dividend		(19	)		(19	)
Net income attributable to common stockholders	$	20,197		$	33,002

The accompanying notes are an integral part of these consolidated financial statements.

141

1515 Broadway Realty Corp.

Consolidated Statements of Equity (Deficit)

Years Ended December 31, 2010 and 2009
(Dollars in thousands)

	Series A Preferred Stock		Series B Subordinated Preferred Stock		Class A Common Stock		Additional Paid- In-Capital		Distributions in Excess of Earnings			Accumulated Other Comprehensive Income (Loss)			Noncontrolling Interests		Total			Comprehensive Income
Balance at December 31, 2009	$	100	$	—	$	—	$	255,452	$	(192,226	)	$	(61	)	$	617	$	63,882		$	33,315
Comprehensive Income:
Net income		—		—		—		—		20,216			—			—		20,216		$	20,216
Unrealized gain on derivative instruments		—		—		—		—		—			75			—		75			75
Preferred dividend										(19	)							(19	)
Distributions to common stockholders		—		—		—		—		(9,500	)		—			—		(9,500	)
Balance at December 31, 2010	$	100	$	—		—	$	255,452	$	(181,529	)	$	14		$	617	$	74,654		$	20,291

The accompanying notes are an integral part of these financial statements.

142

1515 Broadway Realty Corp.

Consolidated Statements of Cash Flows

(Dollars in thousands)

	Year Ended December 31,
Operating activities	2010			2009
Net income	$	20,216		$	33,021
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		16,911			17,149
Deferred rent receivable, net		(1,951	)		(14,856	)
Provision for doubtful accounts		964			1,487
Changes in operating assets and liabilities:
Restricted cash-operations		(1,002	)		7,299
Tenant receivables		(209	)		59
Deferred leasing costs		(4,853	)		(2,011	)
Other assets		6,156			(6,285	)
Deferred revenue		(423	)		(551	)
Accounts payable and accrued expenses		(10,308	)		84
Net cash provided by operating activities		25,501			35,396
Investing activities
Additions to building and improvements		(13,364	)		(26,036	)
Restricted cash-capital improvements		700			14,155
Net cash used in investing activities		(12,664	)		(11,881	)
Financing activities
Repayment of mortgage note payable		(12,103	)		(625,000	)
Proceeds from mortgage note payable		—			475,000
Capital contribution		—			83,887
Repayment of loans receivable-stockholders		—			80,000
Deferred financing costs		(161	)		(12,252	)
Distributions paid		(9,519	)		(7,833	)
Redemption of preferred stock		—			(10	)
Net cash used in financing activities		(21,783	)		(6,208	)
Net (decrease) increase in cash and cash equivalents		(8,946	)		17,307
Cash and cash equivalents at beginning of year		25,156			7,849
Cash and cash equivalents at end of year		16,210			25,156
Supplemental cash flow disclosures
Interest paid	$	19,065		$	9,109
Supplemental disclosure of noncash transactions
Additions to building and improvements accrued	$	692		$	4,808
Deferred leasing costs accrued	$	590		$	5,762

The accompanying notes are an integral part of these financial statements.

143

1515 Broadway Realty Corp.

Notes to Consolidated Financial Statements

December 31, 2010

(Dollars in thousands)

1. Organization

        1515 Broadway Realty Corp. (the "Company") is a Maryland corporation that qualifies as a real estate investment trust ("REIT") for Federal income tax purposes. The Company was formed by SL Green Private REIT LLC, a Delaware limited liability company ("SLG 1515") and the predecessor-in-interest of SITQ BST-REIT, LP, a Delaware limited partnership ("SITQ 1515"). SLG 1515 is owned by SL Green Operating Partnership, L.P., a Delaware limited partnership. SITQ 1515 is an indirect, wholly owned subsidiary of Caisse de dépôt et placement du Québec.

        On May 15, 2002, the Company acquired an approximate 99.7% indirect fee ownership estate in the real property and improvements located at 1515 Broadway, New York, New York (the "Property"). The Property was acquired for approximately $483,500. The Company's sole direct asset is its 99.9% membership interest in 1515 SLG Owner LLC which, through various entities, owns 99.8% of the Property, with the remaining 0.2% owned by the noncontrolling interest of the Company. The Property contains over 1.72 million rentable square feet. The Company currently does not intend to acquire other properties.

        As a result of the loan modification more fully described in Note 5, pre-determined performance thresholds were exceeded in November 2005, thereby increasing SLG 1515's economic interest in the Property to approximately 68.5%.

2. Basis of Presentation and Significant Accounting Policies

        In June 2009, the Financial Accounting Standards Board (the "FASB") issued guidance regarding the Accounting Codification and the Hierarchy of Generally Accepted Accounting Principles ("GAAP"). This guidance establishes the FASB Accounting Standards Codification (the "Codification"), as the source of authoritative accounting principles recognized by the FASB to be applied by nongovernmental entities in the preparation of financial statements in conformity with GAAP, and states that all guidance contained in the Codification carries equal level of authority. Rules and interpretive releases of the Securities and Exchange Commission ("SEC"), under federal securities laws are also sources of authoritative GAAP for SEC registrants. The Codification does not change GAAP; however, it does change the way in which it is to be researched and referenced. This guidance is effective for financial statements issued for interim and annual periods ending September 15, 2009. The Company has implemented the Codification in these consolidated financial statements.

Principles of Consolidation

        The consolidated financial statements include the accounts of the Company and its subsidiaries, which are wholly owned or controlled by the Company. This includes 1515 Broadway Finance LLC ("1515 Finance"). All the activity related to 1515 Finance is allocated exclusively to SLG 1515. All significant intercompany balances and transactions have been eliminated in consolidation.

Commercial Real Estate Property

        Rental property is stated at cost, less accumulated depreciation. Costs directly related to the acquisition and redevelopment of rental property are capitalized. Ordinary repairs and maintenance are expensed as incurred; major replacements and betterments, which improve or extend the life of the asset, are capitalized and depreciated over their estimated useful lives. Fully depreciated assets are removed from the accounts.

144

1515 Broadway Realty Corp.

Notes to Consolidated Financial Statements (Continued)

December 31, 2010

(Dollars in thousands)

2. Basis of Presentation and Significant Accounting Policies (Continued)

        The Property is depreciated using the straight-line method over the estimated useful lives of the assets. The estimated useful lives are as follows:

Category	Term
Building (fee ownership)	40 years
Building improvements	Shorter of remaining life of the building or estimated useful life

        At December 31, building and improvements consisted of the following:

	2010		2009
Building	$	389,181	$	389,181
Improvements		70,044		55,987
Total	$	459,225	$	445,168

        Depreciation expense amounted to $12,170 and $11,463 for the years ended December 31, 2010 and 2009, respectively.

        On a periodic basis, management assesses whether there are any indicators that the value of the real estate property may be impaired. A property's value is impaired if the aggregate future cash flows (undiscounted and without interest charges) to be generated by the property are less than the carrying value of the property. To the extent impairment has occurred, the loss shall be measured as the excess of the carrying amount of the property over the fair value of the property. Management of the Company does not believe that the value of the property was impaired at December 31, 2010 and 2009.

        Upon acquisitions of real estate, the Company assesses the fair value of acquired assets including land, building and tenant improvements, acquired above and below market leases and the origination cost of acquired in-place leases and acquired liabilities, and allocates purchase price based on these assessments.

        The Company assesses fair value based on estimated cash flow projections that utilize appropriate discount and capitalization rates and available market information. Estimates of future cash flows are based on a number of factors, including the historical operating results, known trends, and market/economic conditions that may affect the Property.

        As a result of its evaluations, the Company recorded a deferred liability of $3,643, representing the net value of acquired above and below market leases and assumed lease origination costs, which is included in deferred revenue. This amount is being amortized over the terms of the respective leases. For each of the years ended December 31, 2010 and 2009, the Company recognized an increase in rental revenue of $429 for the amortization of above and below market leases and assumed lease origination costs, and additional building depreciation of $95 resulting from the reallocation of the purchase price to the applicable components. The accumulated amortization of the deferred liability at December 31, 2010 and 2009 was $3,215 and $2,786, respectively. Amortization for the next two years will be $429 per year.

145

1515 Broadway Realty Corp.

Notes to Consolidated Financial Statements (Continued)

December 31, 2010

(Dollars in thousands)

2. Basis of Presentation and Significant Accounting Policies (Continued)

Cash and Cash Equivalents

        The Company considers all highly liquid investments with a maturity of three months or less when purchased to be cash equivalents.

Restricted Cash

        Restricted cash primarily consists of security deposits held on behalf of tenants and escrows for the payment of insurance, real estate taxes, leasing commissions and tenant improvements.

Deferred Leasing Costs

        Deferred leasing costs consist of fees and direct costs incurred to initiate and renew operating leases and are amortized on a straight-line basis over the related lease term.

Deferred Financing Costs

        Deferred financing costs represent commitment fees, legal and other third-party costs associated with obtaining commitments for financing which result in a closing of such financing. These costs are amortized over the terms of the respective agreements. Unamortized deferred financing costs are expensed when the associated debt is paid off before maturity.

Revenue Recognition

        Minimum rental revenue is recognized on a straight-line basis over the term of the lease. The excess of rents recognized over amounts contractually due pursuant to the underlying leases are included in deferred rent receivable in the accompanying consolidated balance sheets. The Company establishes, on a current basis, a reserve for future potential losses, which may occur against deferred rent receivable and tenant receivables. The balance reflected in the accompanying consolidated balance sheets is net of such allowance.

Income Taxes

        The Company is taxed as a REIT under Section 856(c) of the Internal Revenue Code (the "Code"). As a REIT, the Company generally is not subject to Federal income tax. To maintain qualification as a REIT, the Company must distribute at least 90% of its taxable income to its stockholders and meet certain other requirements. If the Company fails to qualify as a REIT in any taxable year, the Company will be subject to Federal income tax on its taxable income at regular corporate tax rates. The Company may also be subject to certain state and local taxes. Under certain circumstances, Federal income and excise taxes may be due on its undistributed taxable income.

        Pursuant to amendments to the Code that became effective January 1, 2001, we have elected, and may in the future, elect to treat certain of our existing or newly created corporate subsidiaries as taxable REIT subsidiaries, or TRS. In general, a TRS of ours may perform non-customary services for our tenants, hold assets that we cannot hold directly and generally may engage in any real estate or non-real estate related business. Our TRS recorded approximately $109 in Federal, state and local tax (benefit)/expense, of which $106 has been paid.

146

1515 Broadway Realty Corp.

Notes to Consolidated Financial Statements (Continued)

December 31, 2010

(Dollars in thousands)

2. Basis of Presentation and Significant Accounting Policies (Continued)

        We follow a two-step approach for evaluating uncertain tax positions. Recognition (step one) occurs when an enterprise concludes that a tax position, based solely on its technical merits, is more-likely-than-not to be sustained upon examination. Measurement (step two) determines the amount of benefit that more-likely-than-not will be realized up settlement. Derecognition of a tax position that was previously recognized would occur when a company subsequently determines that a tax position no longer meets the more-likely-than-not threshold of being sustained. The use of a valuation allowance as a substitute for derecognition of tax positions is prohibited.

Use of Estimates

        The preparation of the consolidated financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates.

Concentrations of Credit Risk

        Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of cash investments in excess of insured amounts and accounts receivable. The Company places its cash investments with high-quality financial institutions. Management of the Company performs ongoing credit evaluations of its tenants and requires certain tenants to provide security deposits or letters of credit. Although these security deposits and letters of credit are insufficient to meet the terminal value of a tenant's lease obligation, they are a measure of good faith and a source of funds to offset the economic costs associated with lost rent and the costs associated with re-tenanting the space. One tenant, whose lease ends between 2015 and 2020, represents approximately 72.7% of the Company's leased square footage and 75.2% of its annualized rent.

Derivative Financial Instruments

        In the normal course of business, the Company uses a variety of derivative financial instruments to manage, or hedge, interest rate risk. The Company requires that hedging derivative instruments be effective in reducing the interest rate risk exposure that they are designated to hedge. This effectiveness is essential for qualifying for hedge accounting. Some derivative instruments may be associated with an anticipated transaction. In those cases, hedge effectiveness criteria also require that it be probable that the underlying transaction occurs. Instruments that meet these hedging criteria are formally designated as hedges at the inception of the derivative contract. If a derivative is a hedge, depending on the nature of the hedge, changes in the fair value of the derivative will either be offset against the change in fair value of the hedged asset, liability, or firm commitment though earnings, or recognized in other comprehensive income (loss) until the hedged item is recognized in earnings. The ineffective portion of a derivative's change in fair value will be immediately recognized in earnings.

Fair Value Measurements

        To determine the fair values of derivative instruments, the Company uses a variety of methods and assumptions that are based on market conditions and risks existing at each balance sheet date. For the majority of financial instruments, including most derivatives, long-term investments and long-term debt, standard market conventions and techniques such as discounted cash flow analysis, option pricing models, replacement cost, and

147

1515 Broadway Realty Corp.

Notes to Consolidated Financial Statements (Continued)

December 31, 2010

(Dollars in thousands)

2. Basis of Presentation and Significant Accounting Policies (Continued)

termination cost are used to determine fair value. All methods of assessing fair value result in a general approximation of value and such value may never actually be realized.

        The methodologies used for valuing such instruments have been categorized into three broad levels as follows:

        Level 1—Quoted prices in active markets for identical instruments.

        Level 2—Valuations based principally on other observable market parameters, including:

•

Quoted prices in active markets for similar instruments,

•

Quoted prices in less active or inactive markets for identical or similar instruments,

•

Other observable inputs (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates), and

•

Market corroborated inputs (derived principally from or corroborated by observable market data).

        Level 3—Valuations based significantly on unobservable inputs.

•

Valuations based on third party indications (broker quotes or counterparty quotes) which were, in turn, based significantly on unobservable inputs or were otherwise not supportable as Level 2 valuations.

•

Valuations based on internal models with significant unobservable inputs.

        These levels form a hierarchy. The Company follows this hierarchy for its financial instruments measured at fair value on a recurring basis. The classifications are based on the lowest level of input that is significant to the fair value measurement.

Accounting Standards Updates

        In December 2007, the FASB amended the accounting for acquisitions specifically eliminating the step acquisition model, changing the recognition of contingent consideration from being recognized when it is probable to being recognized at the time of acquisition, disallowing the capitalization of transaction costs and delays when restructurings related to acquisitions can be recognized. The standard is effective for fiscal years beginning after December 15, 2008 and will only impact the accounting for acquisitions the Company makes after its adoption of this standard. The adoption of this standard on January 1, 2009 did not have a material impact on the Company's historical consolidated financial statements.

        In March 2008, the FASB issued guidance which requires entities to provide greater transparency about (a) how and why an entity uses derivative instruments, (b) how derivative instruments and related hedged items are accounted, and (c) how derivative instruments and related hedged items affect an entity's financial position, results of operations, and cash flows. This guidance was effective on January 1, 2009. The adoption of this guidance did not have a material impact on the Company's consolidated financial statements.

        In September 2009, the FASB issued accounting standards update which provides additional implementation guidance on the accounting for uncertainty in income taxes and eliminates certain disclosure requirements for nonpublic entities. Under the amended disclosure requirements, nonpublic entities are not required to disclose a

148

1515 Broadway Realty Corp.

Notes to Consolidated Financial Statements (Continued)

December 31, 2010

(Dollars in thousands)

2. Basis of Presentation and Significant Accounting Policies (Continued)

tabular reconciliation of the total amounts of unrecognized tax benefits at the beginning and end of the period nor the total amount of unrecognized tax benefits that, if recognized, would affect the effective tax rate. This guidance will become effective for entities that have not already adopted the standard for annual financial statements beginning after December 15, 2008. The adoption of this guidance did not have a material impact on the Company's consolidated financial statements.

3. Deferred Costs

        Deferred costs at December 31 consisted of the following:

	2010			2009
Deferred financing	$	13,919		$	13,758
Deferred leasing		22,670			17,227
		36,589			30,985
Less accumulated amortization		(13,528	)		(8,788	)
	$	23,061		$	22,197

        Amortization expense amounted to $4,740 and $5,686 for the years ended December 31, 2010 and 2009, respectively.

4. Loans Receivable—Stockholders

        In November 2005, the Company loaned $54,955 to SLG 1515 and $45,045 to SITQ 1515. Interest on the loans was due annually in arrears on May 10 of each year at the rate of 6%. The loans were scheduled to mature in November 2015.

        In December 2006, SLG 1515 and SITQ 1515 made principal repayments of $10,991 and $9,009, respectively. On December 22, 2009, in connection with the refinancing, the receivable from SLG 1515 and SITQ 1515 was repaid. Interest income recorded on the loans for the years ended December 31, 2010 and 2009 was none and $4,680, respectively.

5. Mortgage Note Payable

        In June 2004, the Company refinanced the Property with a $425,000 first mortgage. The interest-only mortgage bore interest at 90 basis points over the 30-day LIBOR.

        On November 9, 2005, the Company modified the then existing mortgage, increasing the principal to $625,000. The mortgage continued to bear interest at LIBOR plus 90 basis points (effective all-in weighted-average interest rate was 1.23% and 3.61% for the period ended December 22, 2009 and year ended December 31, 2008, respectively). The term of the loan was two years, during which time interest only was payable monthly. The Company had three one-year renewal options at the same interest rate. The Company exercised the three renewal options. This loan was repaid on December 22, 2009.

        On December 22, 2009, the Company refinanced the Property with a $475,000 mortgage. The mortgage bears interest at a rate of 3.50% until March 22, 2010 when the rate becomes the greater of LIBOR plus 250 basis

149

1515 Broadway Realty Corp.

Notes to Consolidated Financial Statements (Continued)

December 31, 2010

(Dollars in thousands)

5. Mortgage Note Payable (Continued)

points or 3.50%. The term of the mortgage is five years, during which time interest and principal, amortizable over a period of 25 years, is payable monthly. As of December 31, 2010, the loan bears interest at 3.50%.

        Scheduled principal payments to be made through maturity are as follows:

2011	$	12,535
2012		12,980
2013		13,441
2014		423,941
Total	$	462,897

6. Fair Value of Financial Instruments

        The following disclosures of estimated fair value were determined by management, using available market information and appropriate valuation methodologies as discussed in Note 2. Considerable judgment is necessary to interpret market data and develop estimated fair value. Accordingly, the estimates presented herein are not necessarily indicative of the amounts we could realize on disposition of the financial instruments. The use of different market assumptions and/or estimation methodologies may have a material effect upon the estimate fair value amounts.

        Cash and cash equivalents, restricted cash, tenant receivables, accounts payable and accrued expenses, and security deposits approximate fair value due to the short-term maturities of these items.

        The fair value of the Company's mortgage note payable is estimated based on discounting future cash flows at interest rates that management believes reflect the risks associated with debt instruments of similar risk and duration. The estimated aggregate fair value of the Company's mortgage note payable was approximately $489,200 at December 31, 2010.

        Considerable judgment is necessary to interpret market data and develop estimated fair value. The use of different market assumptions and/or estimation methodologies may have a material effect on the estimated fair value amounts.

7. Rental Income

        The Company is the lessor to tenants under operating leases with expiration dates ranging from 2011 to 2024. The minimum rental amounts due under the leases are generally either subject to scheduled fixed increases or adjustments. The leases generally also require that the tenants reimburse the Company for increases in certain

150

1515 Broadway Realty Corp.

Notes to Consolidated Financial Statements (Continued)

December 31, 2010

(Dollars in thousands)

7. Rental Income (Continued)

operating costs and real estate taxes above their base year costs. Future minimum rents to be received over the next five years and thereafter for noncancelable operating leases in effect at December 31, 2010 are as follows:

2011	$	84,219
2012		84,957
2013		83,624
2014		83,529
2015		43,667
Thereafter		166,222
	$	546,218

8. Related Party Transactions

        Pursuant to the Property Management and Leasing Agreement, SL Green Management Corp., an affiliate of SLG 1515, is responsible for the (a) management and leasing (itself or through a wholly owned subsidiary) of the Property and (b) day-to-day corporate management of the Company and its subsidiaries. SL Green Management Corp. is entitled to a management fee equal to 2.0% of the gross receipts from the Property. SL Green Management Corp. is also entitled to certain leasing fees and construction fees as set forth in the Property Management and Leasing Agreement. SL Green Leasing LLC, a wholly owned subsidiary of SL Green Management Corp., is the leasing agent for the Property.

        For the years ended December 31, 2010 and 2009, SL Green Management Corp. earned $3,124 and $5,510 in leasing commissions, $2,007 and $1,627 in management fees, and $827 and $1,961 in construction supervisory fees, respectively.

        The Company has entered into two Asset Management Agreements (collectively, the "Asset Management Agreements") with an affiliate of SITQ 1515, SITQ Inc. ("SITQ Asset Manager") and with an affiliate of SLG 1515, SL Green Management LLC ("SLG Asset Manager").

        Pursuant to the Asset Management Agreements, the SITQ Asset Manager and SLG Asset Manager are obligated to advise the Company on various strategic aspects with respect to the Property. As compensation for these arrangements, the SITQ Asset Manager will be paid $100 per annum. There are business relationships with related parties, which involved repairs, maintenance and security expenses in the ordinary course of business. The Company's transactions with the related parties amounted to $2,215 and $1,967 for the years ended December 31, 2010 and 2009, respectively and are a component of operating expense on accompanying consolidated statements of income.

        Amounts due to related parties were $596 and $5,984 at December 31, 2010 and 2009 respectively.

        On May 12, 2010, a majority owned subsidiary of SL Green Operating Partnership LP, which through various entities holds a majority interest in the Company, assumed a license agreement covering the entire rentable portion of the 11^th and 12^th floors ("Premises") of the Property. As such the affiliate agreed to pay the company fixed annual rent and additional rent with regard to the aforementioned Premises. For the year ended December 31, 2010, the Company recognized $1,893 of rental income from the affiliate.

151

1515 Broadway Realty Corp.

Notes to Consolidated Financial Statements (Continued)

December 31, 2010

(Dollars in thousands)

9. Financial Instruments: Derivatives and Hedging

        The Company entered into an interest rate hedge on November 9, 2005 to ensure that borrowing costs did not become prohibitive, should LIBOR have increased before the debt matured in 2010. LIBOR was the floating rate index on the Company's $625,000 mortgage note. Should the LIBOR index have increased above 5% for the mortgage loan, a financial institution would have paid the venture the interest cost above 5%. By hedging this risk, the Company's interest cost on $625,000 became fixed when LIBOR was 5% or more. This interest rate cap was terminated on December 22, 2009 in connection with the refinancing.

        In accordance with the new mortgage agreement, the Company has also entered into an interest rate hedge to ensure that borrowing costs do not become prohibitive, should LIBOR increase before the debt matures in 2014. LIBOR is the floating rate index on the Company's $475,000 mortgage note. Should the LIBOR index increase above 6% for the mortgage loan, a financial institution will pay the venture the interest cost above 6%. By hedging this risk, the Company's interest cost on $475,000 becomes fixed when LIBOR is 6% or more. The hedging instrument, called an "interest rate cap", was an asset with a fair value of $2 as of December 31, 2010. The $75 change in value of this hedging instrument was recorded in accumulated other comprehensive income (loss).

10. Equity

        On December 10, 2002, the Company issued 125 shares of Series A Preferred Stock, par value $1. This cumulative nonvoting preferred stock is callable by the Company with a premium based on the period of time the stock has been outstanding. The call premium was 15% through December 31, 2007. The premium will be reduced each year thereafter by 2.5% per year, such that there will be no premium after January 1, 2011. Dividends, at 15% of par value per annum, are payable on June 30 and December 31 of each year. The Company received proceeds of $100, net of issuance costs, from the sale of the Series A Preferred Stock.

        On December 22, 2009, in connection with the refinancing, SLG 1515, 1515 Promote LLC, and SITQ 1515 made capital contributions in the amount of $46,054, $84 and $37,749, respectively, to the Company.

11. Subsequent Events

        The Company has evaluated subsequent events through the date in which these consolidated financial statements were available for issuance on February 2, 2011.

152

ITEM 9.    CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE

        None.

ITEM 9A.    CONTROLS AND PROCEDURES

Evaluation of Disclosure Controls and Procedures

        We maintain disclosure controls and procedures that are designed to ensure that information required to be disclosed in our Exchange Act reports is recorded, processed, summarized and reported within the time periods specified in the SEC's rules and forms, and that such information is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure based closely on the definition of "disclosure controls and procedures" in Rule 13a-15(e) of the Exchange Act. Notwithstanding the foregoing, a control system, no matter how well designed and operated, can provide only reasonable, not absolute, assurance that it will detect or uncover failures within the Company to disclose material information otherwise required to be set forth in our periodic reports. Also, we have investments in certain unconsolidated entities. As we do not control these entities, our disclosure controls and procedures with respect to such entities are necessarily substantially more limited than those we maintain with respect to our consolidated subsidiaries.

        As of the end of the period covered by this report, we carried out an evaluation, under the supervision and with the participation of our management, including our Chief Executive Officer and our Chief Financial Officer, of the effectiveness of the design and operation of our disclosure controls and procedures. Based upon that evaluation as of the end of the period covered by this report, our Chief Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures were effective to give reasonable assurances to the timely collection, evaluation and disclosure of information relating to the Company that would potentially be subject to disclosure under the Exchange Act and the rules and regulations promulgated thereunder.

Management's Report on Internal Control over Financial Reporting

        We are responsible for establishing and maintaining adequate internal control over financial reporting, as such term is defined in Exchange Act Rules 13a-15(f) and 15d-15(f). Under the supervision and with the participation of our management, including our Chief Executive Officer and Chief Financial Officer, we conducted an evaluation of the effectiveness of our internal control over financial reporting as of December 31, 2011 based on the framework in Internal Control-Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Based on that evaluation, we concluded that our internal control over financial reporting was effective as of December 31, 2011.

        Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree or compliance with the policies or procedures may deteriorate.

        The effectiveness of the Company's internal control over financial reporting as of December 31, 2011 has been audited by Ernst & Young LLP, an independent registered public accounting firm, as stated in their report which appears herein.

Changes in Internal Control over Financial Reporting

        There have been no significant changes in our internal control over financial reporting during the quarter ended December 31, 2011 that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

153

Report of Independent Registered Public Accounting Firm

To the Board of Directors and Shareholders of SL Green Realty Corp.:

        We have audited SL Green Realty Corp.'s (the "Company") internal control over financial reporting as of December 31, 2011, based on criteria established in Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (the COSO criteria). The Company's management is responsible for maintaining effective internal control over financial reporting, and for its assessment of the effectiveness of internal control over financial reporting included in the accompanying Management's Report on Internal Control over Financial Reporting. Our responsibility is to express an opinion on the Company's internal control over financial reporting based on our audit.

        We conducted our audit in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects. Our audit included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, testing and evaluating the design and operating effectiveness of internal control based on the assessed risk, and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion.

        A company's internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company's internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company's assets that could have a material effect on the financial statements.

        Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

        In our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of December 31, 2011, based on the COSO criteria.

        We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States), the consolidated balance sheets of the Company as of December 31, 2011 and 2010, and the related consolidated statements of income, equity and cash flows for each of the three years in the period ended December 31, 2011 of the Company and our report dated February 28, 2012 expressed an unqualified opinion thereon.

	/s/ Ernst & Young LLP
New York, New York February 28, 2012

154

ITEM 9B.    OTHER INFORMATION

        None.

PART III

ITEM 10.    DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE

        The information required by Item 10 will be set forth in our Definitive Proxy Statement for our 2012 Annual Meeting of Stockholders, to be filed pursuant to Regulation 14A under the Securities and Exchange Act of 1934, as amended, on or prior to April 30, 2012 (the "2012 Proxy Statement"), and is incorporated herein by reference.

ITEM 11.    EXECUTIVE COMPENSATION

        The information required by Item 11 will be set forth in the 2012 Proxy Statement and is incorporated herein by reference.

ITEM 12.    SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS

        The information required by Item 12 will be set forth in the 2012 Proxy Statement and is incorporated herein by reference.

ITEM 13.    CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE

        The information required by Item 13 will be set forth under in the 2012 Proxy Statement and is incorporated herein by reference.

ITEM 14.    PRINCIPAL ACCOUNTING FEES AND SERVICES

        The information regarding principal accounting fees and services and the audit committee's pre-approval policies and procedures required by this Item 14 is incorporated herein by reference to the 2012 Proxy Statement.

155

PART IV

ITEM 15.    EXHIBITS, FINANCIAL STATEMENTS AND SCHEDULES

(a)(1) Consolidated Financial Statements

SL GREEN REALTY CORP.
Report of Independent Registered Public Accounting Firm	66
Consolidated Balance Sheets as of December 31, 2011 and 2010	67
Consolidated Statements of Income for the years ended December 31, 2011, 2010 and 2009	68
Consolidated Statements of Equity for the years ended December 31, 2011, 2010 and 2009	69
Consolidated Statements of Cash Flows for the years ended December 31, 2011, 2010 and 2009	70
Notes to Consolidated Financial Statements	71
(a)(2)    Financial Statement Schedules
Schedule II—Valuation and Qualifying Accounts—years ended December 31, 2011, 2010 and 2009	126
Schedule III—Real Estate and Accumulated Depreciation as of December 31, 2011	127
Consolidated Financial Statements and Report of Ernst & Young LLP Independent Registered Public Accounting Firm for Rock-Green, Inc.
Consolidated Financial Statements and Report of Ernst & Young LLP Independent Registered Public Accounting Firm for Rock-Green, Inc.	129
Consolidated Statements of Income for the period January 1, 2010 to April 30, 2010 (unaudited) and the year ended December 31, 2009	130
Consolidated Statements of Changes in Equity for the period January 1, 2010 to April 30, 2010 (unaudited) and the year ended December 31, 2009	131
Consolidated Statements of Cash Flows for the period January 1, 2010 to April 30, 2010 (unaudited) and the year ended December 31, 2009	132
Notes to the Consolidated Financial Statements	133
Consolidated Financial Statements and Report of Ernst & Young LLP Independent Registered Public Accounting Firm for 1515 Broadway Realty Corp.
Consolidated Financial Statements and Report of Ernst & Young LLP Independent Registered Public Accounting Firm for 1515 Broadway Realty Corp.	139
Consolidated Balance Sheet as of December 31, 2010	140
Consolidated Statements of Income for the years ended December 31, 2010 and 2009	141
Consolidated Statements of Changes in Equity for the years ended December 31, 2010 and 2009	142
Consolidated Statements of Cash Flows for the years ended December 31, 2010 and 2009	143
Notes to the Consolidated Financial Statements	144

        The consolidated financial statements of Rock-Green, Inc. and 1515 Broadway Realty Corp. are being provided to comply with applicable rules and Regulations of the Securities and Exchange Commission.

        Schedules other than those listed are omitted as they are not applicable or the required or equivalent information has been included in the financial statements or notes thereto.

(a)(3)    In reviewing the agreements included as exhibits to this Annual Report on Form 10-K, please remember they are included to provide you with information regarding their terms and are not intended to provide any other factual or disclosure information about us or the other parties to the agreements. The agreements contain representations and warranties by each of the parties to the applicable agreement. These representations and warranties have been made solely for the benefit of the other parties to the applicable agreement and:

•

should not in all instances be treated as categorical statements of fact, but rather as a way of allocating the risk to one of the parties if those statements prove to be inaccurate;

156

•

have been qualified by disclosures that were made to the other party in connection with the negotiation of the applicable agreement, which disclosures are not necessarily reflected in the agreement;

•

may apply standards of materiality in a way that is different from what may be viewed as material to you or other investors; and

•

were made only as of the date of the applicable agreement or such other date or dates as may be specified in the agreement and are subject to more recent developments.

        Accordingly, these representations and warranties may not describe the actual state of affairs as of the date they were made or at any other time. Additional information about us may be found elsewhere in this Annual Report on Form 10-K and our other public filings, which are available without charge through the SEC's website at http://www.sec.gov.

157

INDEX TO EXHIBITS

3.1	Articles of Amendment and Restatement, incorporated by reference to the Company's Form 8-K, dated May 24, 2007, filed with the SEC on May 30, 2007.
3.2	Second Amended and Restated Bylaws of the Company, incorporated by reference to the Company's Form 8-K, dated December 12, 2007, filed with the SEC on December 14, 2007.
3.3	Amendment No. 1 to the Second Amended and Restated Bylaws of the Company, incorporated by reference to the Company's Form 8-K, dated March 13, 2009, filed with the SEC on March 13, 2009.
3.4	Amendment No. 2 to the Second Amended and Restated Bylaws of the Company, incorporated by reference to the Company's Form 8-K, dated September 16, 2009, filed with the SEC on September 16, 2009.
3.5	Articles Supplementary Establishing the Rights and Preferences of the Series B Junior Participating Preferred Stock and Increasing the Authorized Amount of such Stock, incorporated by reference to the Company's Form 8-K, dated September 16, 2009, filed with the SEC on September 16, 2009.
3.6	Articles Supplementary Electing that SL Green Realty Corp. be Subject to Maryland General Corporations Law Section 3-804(c), incorporated by reference to the Company's Form 8-K, dated September 16, 2009, filed with the SEC on September 16, 2009.
3.7	Articles Supplementary reclassifying and designating an additional 5,400,000 shares of preferred stock as 7.625% Series C Cumulative Redeemable Preferred Stock, par value $.01 per share, incorporated by reference to the Company's Form 8-K, dated January 20, 2010, filed with the SEC on January 20, 2010.
4.1	Specimen Common Stock Certificate, incorporated by reference to the Company's Registration Statement on Form S-11 (No. 333-29329), declared effective by the SEC on August 14, 1997.
4.2	Form of stock certificate evidencing the 7.625% Series C Cumulative Redeemable Preferred Stock of the Company, liquidation preference $25.00 per share, par value $.01 per share, incorporated by reference to the Company's Form 8-K, dated December 3, 2003, filed with the SEC on December 10, 2003.
4.3	Form of stock certificate evidencing the 7.875% Series D Cumulative Redeemable Preferred Stock of the Company, liquidation preference $25.00 per share, par value $.01 per share, incorporated by reference to the Company's Form 8-K, dated April 29, 2004, filed with the SEC on May 20, 2004.
4.4	Indenture, dated as of March 26, 2007, by and among the Company, the Operating Partnership and The Bank of New York, as trustee, incorporated by reference to the Company's Form 8-K, dated March 21, 2007, filed with the SEC on March 27, 2007.
4.5	Indenture, dated as of March 26, 1999, among ROP, as Issuer, Reckson, as Guarantor, and The Bank of New York, as Trustee, incorporated by reference to ROP's Form 8-K, dated March 23, 1999, filed with the SEC on March 26, 1999.
4.6	First Supplemental Indenture, dated as of January 25, 2007, by and among ROP, Reckson, The Bank of New York and the Company, incorporated by reference to the Company's Form 8-K, dated January 24, 2007, filed with the SEC on January 30, 2007.
4.7	Indenture, dated as of March 16, 2010, among ROP, as Issuer, the Company and the Operating Partnership, as Co-Obligors, and The Bank of New York Mellon, as Trustee, incorporated by reference to the Company's Form 8-K, dated March 16, 2010, filed with the SEC on March 17, 2010.
4.8	Form of 7.75% Senior Note due 2020 of ROP, the Company and the Operating Partnership, incorporated by reference to the Company's Form 8-K, dated March 16, 2010, filed with the SEC on March 17, 2010.

158

4.9	Indenture, dated as of October 12, 2010, by and among the Operating Partnership, as Issuer, ROP, as Guarantor, the Company and The Bank of New York Mellon, as Trustee, incorporated by reference to the Company's Form 8-K, dated October 12, 2010, filed with the SEC on October 14, 2010.
4.10	Indenture, dated as of August 5, 2011, among the Company, the Operating Partnership and ROP, as Co-Obligors, and The Bank of New York Mellon, as Trustee, incorporated by reference to the Company's Form 8-K, dated August 5, 2011, filed with the SEC on August 5, 2011.
4.11	First Supplemental Indenture, dated as of August 5, 2011, among the Company, the Operating Partnership and ROP, as Co-Obligors, and The Bank of New York Mellon, as Trustee, incorporated by reference to the Company's Form 8-K, dated August 5, 2011, filed with the SEC on August 5, 2011.
4.12	Form of 5.00% Senior Note due 2018 of the Company, the Operating Partnership and ROP, incorporated by reference to the Company's Form 8-K, dated August 5, 2011, filed with the SEC on August 5, 2011.
4.13	Junior Subordinated Indenture, dated as of June 30, 2005, between the Operating Partnership and JPMorgan Chase Bank, National Association, as Trustee, incorporated by reference to the Company's Quarterly Report on Form 10-Q for the quarter ended June 30, 2005, filed with the SEC on August 9, 2005.
10.1	Credit Agreement, dated as of November 10, 2011, by and among the Company, the Operating Partnership and ROP, as Borrowers, each of the Lenders party thereto, Wells Fargo Bank, National Association, as Administrative Agent, with Wells Fargo Securities, LLC, J.P. Morgan Securities LLC and Deutsche Bank Securities Inc., as the Lead Arrangers, Wells Fargo Securities, LLC, J.P. Morgan Securities LLC and Deutsche Bank Securities,  Inc., as the Joint Bookrunners, JPMorgan Chase Bank, N.A., as Syndication Agent, and Deutsche Bank Securities Inc., Bank of America, N.A. and Citigroup Global Markets Inc. as the Documentation Agents and the other agents party thereto, incorporated by reference to the Company's Form 8-K, dated November 16, 2011, filed with the SEC on November 16, 2011.
10.2	First Amended and Restated Agreement of Limited Partnership of the Operating Partnership, incorporated by reference to the Company's Form 8-K, dated October 23, 2002, filed with the SEC on October 23, 2002.
10.3	First Amendment to the First Amended and Restated Agreement of Limited Partnership of the Operating Partnership, dated May 14, 1998, incorporated by reference to the Company's Form 8-K, dated October 23, 2002, filed with the SEC on October 23, 2002.
10.4	Second Amendment to the First Amended and Restated Agreement of Limited Partnership of the Operating Partnership, incorporated by reference to the Company's Quarterly Report on Form 10-Q for the quarter ended June 30, 2002, filed with the SEC on July 31, 2002.
10.5	Third Amendment to the First Amended and Restated Agreement of Limited Partnership of the Operating Partnership, dated December 12, 2003, incorporated by reference to the Company's Annual Report on Form 10-K for the year ended December 31, 2003, filed with the SEC on March 15, 2004.
10.6	Amended and Restated Fourth Amendment to the First Amended and Restated Agreement of Limited Partnership of the Operating Partnership, dated as of July 15, 2004, incorporated by reference to the Company's Annual Report on Form 10-K for the year ended December 31, 2004, filed with the SEC on March 15, 2005.
10.7	Fifth Amendment to the First Amended and Restated Agreement of Limited Partnership of the Operating Partnership, dated as of March 15, 2006, incorporated by reference to the Company's Annual Report on Form 10-K for the year ended December 31, 2005, filed with the SEC on March 16, 2006.

159

10.8	Sixth Amendment to the First Amended and Restated Agreement of Limited Partnership of the Operating Partnership, dated as of June 30, 2006, incorporated by reference to the Company's Quarterly Report on Form 10-Q for the quarter ended June 30, 2006, filed with the SEC on August 10, 2006.
10.9	Seventh Amendment to the First Amended and Restated Agreement of Limited Partnership of the Operating Partnership, dated as of January 25, 2007, incorporated by reference to the Company's Form 8-K, dated January 24, 2007, filed with the SEC on January 30, 2007.
10.10	Eighth Amendment to the First Amended and Restated Agreement of Limited Partnership of the Operating Partnership, dated as of January 20, 2010, incorporated by reference to the Company's Form 8-K, dated January 20, 2010, filed with the SEC on January 20, 2010.
10.11	Ninth Amendment to the First Amended and Restated Agreement of Limited Partnership of the Operating Partnership, dated as of November 30, 2011, incorporated by reference to the Company's Form 8-K, dated December 5, 2011, filed with the SEC on December 5, 2011.
10.12	Tenth Amendment to the First Amended and Restated Agreement of Limited Partnership of the Operating Partnership, dated as of January 31, 2012, incorporated by reference to the Company's Form 8-K, dated January 31, 2012, filed with the SEC on February 2, 2012.
10.13	Amended and Restated Agreement of Limited Partnership of ROP, incorporated by reference to ROP's Registration Statement on Form S-11, filed with the SEC on February 12, 1996.
10.14	Supplement to the Amended and Restated Agreement of Limited Partnership of ROP relating to the succession as a general partner of Wyoming Acquisition GP LLC, incorporated by reference to ROP's Annual Report on Form 10-K for the year ended December 31, 2007, filed with the SEC on March 31, 2008.
10.15	Registration Rights Agreement, dated as of March 26, 2007, by and among the Company, the Operating Partnership and the Initial Purchaser, incorporated by reference to the Company's Form 8-K, dated March 21, 2007, filed with the SEC on March 27, 2007.
10.16	Registration Rights Agreement, dated as of October 12, 2010, by and among the Operating Partnership, ROP, the Company and Citigroup Global Markets Inc., incorporated by reference to the Company's Form 8-K, dated October 12, 2010, filed with the SEC on October 14, 2010.
10.17	Form of Articles of Incorporation and Bylaws of SL Green Management Corp., incorporated by reference to the Company's Registration Statement on Form S-11 (No. 333-29329), declared effective by the SEC on August 14, 1997.
10.18	Form of Registration Rights Agreement between the Company and the persons named therein, incorporated by reference to the Company's Registration Statement on Form S-11 (No. 333-29329), declared effective by the SEC on August 14, 1997.
10.19	Amended and Restated Trust Agreement among the Operating Partnership, as depositor, JPMorgan Chase Bank, National Association, as property trustee, Chase Bank USA, National Association, as Delaware trustee, and the administrative trustees named therein, dated June 30, 2005, incorporated by reference to the Company's Quarterly Report on Form 10-Q for the quarter ended June 30, 2005, filed with the SEC on August 9, 2005.
10.20	Amended 1997 Stock Option and Incentive Plan, incorporated by reference to the Company's Registration Statement on Form S-8 (No. 333-89964), filed with the SEC on June 6, 2002.*
10.21	Amended and Restated 2005 Stock Option and Incentive Plan, incorporated by reference to the Company's Quarterly Report on Form 10-Q for the quarter ended September 30, 2007, filed with the SEC on November 9, 2007.*

160

10.22	First Amendment to the SL Green Realty Corp. Amended and Restated 2005 Stock Option and Incentive Plan, dated as of December 9, 2009, by the Company, incorporated by reference to the Company's Form 8-K, dated December 9, 2009, filed with the SEC on December 15, 2009.*
10.23	Second Amended and Restated 2005 Stock Option and Incentive Plan (incorporated by reference to Appendix A to the Proxy Statement), incorporated by reference to the Company's Form 8-K, dated June 15, 2010, filed with the SEC on June 18, 2010.*
10.24	Form of Award Agreement for granting awards under the SL Green Realty Corp. 2010 Notional Unit Long-Term Compensation Plan, incorporated by reference to the Company's Form 8-K, dated April 2, 2010, filed with the SEC on April 2, 2010.*
10.25	Non-Employee Directors' Deferral Program, incorporated by reference to the Company's Annual Report on Form 10-K for the year ended December 31, 2011, filed with the SEC on February 28, 2011. *
10.26	First Amendment to Non-Employee Directors' Deferral Program, incorporated by reference to the Company's Annual Report on Form 10-K for the year ended December 31, 2011, filed with the SEC on February 28, 2011.*
10.27	Amended and Restated Employment and Non-competition Agreement, dated December 24, 2010, between Stephen L. Green and the Company, incorporated by reference to the Company's Form 8-K, dated December 23, 2010, filed with the SEC on December 29, 2010.*
10.28	Deferred Compensation Agreement, dated December 18, 2009, between the Company and Stephen L. Green, incorporated by reference to the Company's Form 8-K, dated December 18, 2009, filed with the SEC on December 24, 2009.*
10.29	Deferred Compensation Agreement, dated December 24, 2010, between the Company and Stephen L. Green, incorporated by reference to the Company's Form 8-K, dated December 23, 2010, filed with the SEC on December 29, 2010.*
10.30	Amended and Restated Employment Agreement, dated December 18, 2009, between the Company and Marc Holliday, incorporated by reference to the Company's Form 8-K, dated December 18, 2009, filed with the SEC on December 24, 2009.*
10.31	Deferred Compensation Agreement, dated December 18, 2009, between the Company and Marc Holliday, incorporated by reference to the Company's Form 8-K, dated December 18, 2009, filed with the SEC on December 24, 2009.*
10.32	Amended and Restated Employment and Non-competition Agreement, dated September 3, 2010, between the Company and Andrew Mathias, incorporated by reference to Pre-Effective Amendment No. 2 to the Registration Statement on Form S-4, filed with the SEC on September 14, 2010.*
10.33	Employment Agreement, dated as of November 4, 2010, between the Company and James Mead, incorporated by reference to the Company's Form 8-K, dated November 10, 2010, filed with the SEC on November 10, 2010.*
10.34	Amended and Restated Employment and Non-competition Agreement, dated December 23, 2010, between the Company and Andrew Levine, incorporated by reference to the Company's Form 8-K, dated December 23, 2010, filed with the SEC on December 29, 2010.
10.35	ATM Equity Offering Sales Agreement, dated February 10, 2011, among the Company, the Operating Partnership and Merrill Lynch, Pierce, Fenner & Smith Incorporated, incorporated by reference to the Company's Form 8-K/A, dated February 10, 2011, filed with the SEC on February 16, 2011.
10.36	ATM Equity Offering Sales Agreement, dated February 10, 2011, among the Company, the Operating Partnership and Morgan Stanley & Co. Incorporated, incorporated by reference to the Company's Form 8-K/A, dated February 10, 2011, filed with the SEC on February 16, 2011.

161

10.37	At-the-Market Equity Offering Sales Agreement, dated April 13, 2011, among the Company, the Operating Partnership and Deutsche Bank Securities Inc., incorporated by reference to the Company's Form 8-K, dated April 13, 2011, filed with the SEC on April 13, 2011.
10.38	At-the-Market Equity Offering Sales Agreement, dated April 13, 2011, among the Company, the Operating Partnership and Wells Fargo Securities, LLC., incorporated by reference to the Company's Form 8-K, dated April 13, 2011, filed with the SEC on April 13, 2011.
10.39	At-the-Market Equity Offering Sales Agreement, dated July 27, 2011, among the Company, the Operating Partnership and Citigroup Global Markets Inc., incorporated by reference to the Company's Form 8-K, dated July 27, 2011, filed with the SEC on July 27, 2011.
10.40	At-the-Market Equity Offering Sales Agreement, dated July 27, 2011, among the Company, the Operating Partnership and J.P. Morgan Securities LLC, incorporated by reference to the Company's Form 8-K, dated July 27, 2011, filed with the SEC on July 27, 2011.
12.1	Ratio of Earnings to Combined Fixed Charges and Preferred Stock Dividends, filed herewith.
21.1	Subsidiaries of the Company, filed herewith.
23.1	Consent of Ernst & Young LLP, filed herewith.
24.1	Power of Attorney (included on signature page).
31.1	Certification by the Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002, filed herewith.
31.2	Certification by the Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002, filed herewith.
32.1	Certification by the Chief Executive Officer pursuant to 18 U.S.C. section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, filed herewith.
32.2	Certification by the Chief Financial Officer pursuant to 18 U.S.C. section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, filed herewith.
101.1	The following financial statements from the Company's Annual Report on Form 10-K for the year ended December 31, 2011, formatted in XBRL: (i) Consolidated Balance Sheets as of December 31, 2011 and 2010, (ii) Consolidated Statements of Income for the years ended December 31, 2011, 2010 and 2009, (iii) Consolidated Statement of Equity for the years ended December 31, 2011, 2010 and 2009, (iv) Consolidated Statements of Cash Flows for the years ended December 31, 2011, 2010 and 2009, and (v) Notes to Consolidated Financial Statements, detail tagged, filed herewith.**

*

Management contracts and compensatory plans or arrangements to be filed as an exhibit to this Form 10-K pursuant to Item 15(b).

**

In accordance with Rule 406T of Regulation S-T, the XBRL related information in Exhibit 101 to this Annual Report on Form 10-K shall not be deemed to be "filed" for purposes of Section 18 of the Exchange Act, or otherwise subject to the liability of that section, and shall not be incorporated by reference into any registration statement or other document filed under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.

162

SIGNATURES

        Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

	SL GREEN REALTY CORP.
Dated: February 28, 2012	By:	/s/ JAMES MEAD James Mead Chief Financial Officer

        KNOW ALL MEN BY THESE PRESENTS, that we, the undersigned officers and directors of SL Green Realty Corp. hereby severally constitute Marc Holliday and James Mead, and each of them singly, our true and lawful attorneys and with full power to them, and each of them singly, to sign for us and in our names in the capacities indicated below, the Annual Report on Form 10-K filed herewith and any and all amendments to said Annual Report on Form 10-K, and generally to do all such things in our names and in our capacities as officers and directors to enable SL Green Realty Corp. to comply with the provisions of the Securities Exchange Act of 1934, as amended, and all requirements of the Securities and Exchange Commission, hereby ratifying and confirming our signatures as they may be signed by our said attorneys, or any of them, to said Annual Report on Form 10-K and any and all amendments thereto.

        Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated:

Signatures	Title	Date
/s/ STEPHEN L. GREEN Stephen L. Green	Chairman of the Board of Directors	February 28, 2012
/s/ MARC HOLLIDAY Marc Holliday	Chief Executive Officer and Director (Principal Executive Officer)	February 28, 2012
/s/ JAMES MEAD James Mead	Chief Financial Officer (Principal Financial and Accounting Officer)	February 28, 2012
/s/ JOHN H. ALSCHULER, JR. John H. Alschuler, Jr.	Director	February 28, 2012
/s/ EDWIN THOMAS BURTON, III Edwin Thomas Burton, III	Director	February 28, 2012
/s/ JOHN S. LEVY John S. Levy	Director	February 28, 2012
/s/ CRAIG HATKOFF Craig Hatkoff	Director	February 28, 2012

163

EX-12.1

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Exhibit 12.1

SL Green Realty Corp.
Ratio of Earnings to Fixed Charge and Preferred Stock Dividends

	Year Ended December 31,
	2011		2010		2009		2008			2007
Earnings
Income from continuing operations	$	122,561	$	108,077	$	1,619	$	26,028		$	62,061
Joint Venture cash distributions		133,199		584,564		79,523		525,372			128,305
Interest		286,261		231,163		235,347		295,634			263,663
Amortization of loan costs expensed		14,118		9,046		7,065		6,139			15,893
Portion of rent expense representative of interest		25,547		22,570		22,986		24,346			23,276
Total earnings	$	581,686	$	955,420	$	346,540	$	877,519		$	493,198
Fixed Charges and Preferred Stock Dividends
Interest capitalized	$	286,261	$	231,163	$	235,347	$	295,634		$	263,663
Preferred stock dividends		30,178		29,749		19,875		19,875			19,875
Interest capitalized		—		—		98		(179	)		5,118
Portion of rent expense representative of interest		25,547		22,570		22,986		24,346			23,276
Amortization of loan costs expensed		14,118		9,046		7,065		6,139			15,893
Total Fixed Charges and Preferred Stock Dividends	$	356,104	$	292,528	$	285,371	$	345,815		$	327,825
Ratio of earnings to combined fixed charges and preferred stock dividends		1.63		3.27		1.21		2.54			1.50

        The ratios of earnings to combined fixed charges and preferred dividends and distributions were computed by dividing earnings by fixed charges. For the purpose of calculating the ratios, the earnings have been calculated by adding fixed charges to income from continuing operations before adjustment for noncontrolling interests plus distributions from unconsolidated joint ventures, excluding gains or losses from sale of property, purchase price fair value adjustments, gains and losses on equity investment and marketable securities and the cumulative effect of changes in accounting principles. With respect to SL Green Realty Corp., fixed charges and preferred stock dividends consists of interest expense including the amortization of debt issuance costs, rental expense deemed to represent interest expense and preferred dividends paid on its 7.625% Series C and its 7.875% Series D cumulative redeemable preferred stock.

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Exhibit 12.1

SL Green Realty Corp. Ratio of Earnings to Fixed Charge and Preferred Stock Dividends

EX-21.1

Exhibit 21.1

Entity Name	State of Incorporation
1 Madison Residential Holdings B LLC	Delaware
10 E 53 Owner LLC	Delaware
100 Church Fee Owner LLC	Delaware
1010 Washington SLG Owner LLC	Delaware
107-30 Rockaway Blvd LLC	Delaware
108-01 Rockaway Blvd LLC	Delaware
110 E 42nd GP LLC	Delaware
110 E 42nd Holdco LLC	Delaware
110 E 42nd LPA LLC	Delaware
110 E 42nd Mezz II LP	Delaware
11W34 Investor LLC	Delaware
125 Chubb Holdings LLC (f/k/a SLG 114 Fifth Funding LLC)	Delaware
125 Park Owner LLC (f/k/a SLG 125 Park LLC)	Delaware
150 Grand Owner LLC	Delaware
1515 Office TRS Corp.	Delaware
1515 Promote LLC	Delaware
1515 SLG Optionee LLC	Delaware
1515 SLG PRIVATE REIT I LLC	Delaware
1515 SLG Private REIT LLC	Delaware
1775 Broadway Member LLC	Delaware
180 Maiden Member LLC	Delaware
2 Herald Owner LLC	Delaware
292 Madison Owner LLC	Delaware
300 Main Lessee LLC	Delaware
333W34 SLG Owner LLC	Delaware
51E42 Owner LLC	Delaware
673 Interest Holder LLC	Delaware
750 Third Owner LLC	Delaware
885 Third Fee LLC	Delaware
885 Third Lot A Owner LLC	Delaware
885 Third Owner LLC	Delaware
919 Ground Lease Member LLC	Delaware
Belmont Insurance Company	New York
Concept Space LLC	Delaware
eEmerge, Inc	Delaware, New York
GKK Manager Member Corp.	Delaware
Greater New York Property LLC	Delaware
Green 1250 Broadway Acquisition LLC	Delaware, New York
Green 1250 Broadway LLC	Delaware, New York
Green 141 Fifth Investment LLC	Delaware
Green 141 Fifth Participation Corp.	Delaware
Green 1552 Member LLC	Delaware
Green 1604 Investment LLC	Delaware
Green 317 Madison LLC	Delaware, New York
Green 379 Broadway LLC	Delaware
Green 461 Fifth Lessee LLC	Delaware, New York
Green 485  Holdings LLC	Delaware
Green 521 Fifth Avenue Holdings LLC	Delaware
Green 521 Fifth Mezz LLC	Delaware
Green 625 Mezz Lessee LLC	Delaware
Green 673 SPE Member Inc.	New York
Green 711 Fee Manager LLC	Delaware
Green 711 LM LLC	New York
Green 711 Mortgage Manager LLC	Delaware
Green 711 Sublease Manager LLC	Delaware
Green 724 Member LLC	Delaware
Green 747 Member LLC	Delaware
Green 800 Third Holdings LLC	Delaware
Green 800 Third LLC	Delaware
Green Broadway Nassau LLC	Delaware
Green Broadway/34 Investment LLC	Delaware
Green Eastside Member LLC	Delaware
Green Jericho Member LLC	Delaware
Green Loan Services LLC	Delaware
Green Meadows Member LLC	Delaware
Green W 57TH ST LLC	New York
Jericho Promote Member LLC	Delaware
Landmark Square 1-6 LLC	Delaware
Metropolitan Partners, LLC	Delaware
New Green 673 Realty LLC	New York
North 3rd Acquisition LLC	Delaware
ONE COURT SQUARE MEMBER LLC	Delaware
OS MEADOWS MEMBER II, LLC	Delaware
Reckson Mezz. LLC	New York
Reckson Operating Partnership, L.P.	Delaware
S.L. Green Management Corp.	New York
SL Green 100 Park LLC	New York
SL Green 800 JV Member LLC	Delaware
SL Green Capital Trust I	Delaware
SL Green Funding LLC*	New York
SL Green Management LLC	Delaware, New York
SL Green Operating Partnership L.P.	Delaware, New York
SL Green Realty Acquisition LLC	Delaware, New York
SL Green Realty Corp.	Maryland, New York
SL Green Servicing Corp.	Delaware
SLG 1372 BROADWAY GP LLC	Delaware
SLG 1372 Broadway Limited Partner LLC	Delaware
SLG 1515 Broadway Finance LLC	Delaware
SLG 16 Court Street LLC	Delaware
SLG 1745 GP LLC	Delaware
SLG 1745 LP LLC	Delaware
SLG 2 Herald LLC	Delaware
SLG 2 Herald Manager LLC	Delaware
SLG 220 News MZ LLC	Delaware, New York
SLG 220 News Owner LLC	Delaware, New York
SLG 331 Madison LLC	Delaware
SLG 388 Greenwich Promote LLC	Delaware
SLG 388 Greenwich Shareholder LLC	Delaware
SLG 48 E. 43rd LLC	Delaware
SLG 500 West Putnam Owner LLC	Delaware
SLG 600 Lexington Promote LLC	Delaware
SLG 600 Lexington SH LLC	Delaware
SLG 609 Fifth LLC	Delaware
SLG 625 Lessee LLC	Delaware
SLG 7 Renaissance Member LLC	Delaware
SLG 711 Fee LLC	New York
SLG 711 Third LLC	New York
SLG 711 Third Sublandlord LLC	Delaware
SLG 717 Fifth Member LLC	Delaware
SLG 885 Third Manager LLC	Delaware
SLG Asset Management Fee LLC	Delaware, New York
SLG Elevator Holdings LLC	New York
SLG Gramercy Services LLC	Delaware
SLG Graybar LLC	Delaware
SLG Graybar Mesne Lease Corp	New York
SLG Graybar Mesne Lease I LLC	Delaware
SLG Graybar Mesne Lease LLC	New York
SLG Graybar New Ground Lessee LLC	Delaware
SLG Graybar New Lessee LLC	Delaware
SLG Graybar Sublease Corp	New York
SLG Graybar Sublease LLC	New York
SLG IRP Realty LLC	New York
SLG LeaseCo Member LLC	Delaware
SLG Lightpath LLC	Delaware
SLG Madison Investment LLC	Delaware
SLG One Park Shareholder II LLC	Delaware
SLG One Park Shareholder LLC	Delaware
SLG OpCo Holdings LLC	Delaware
SLG OpCo Member LLC	Delaware
SLG Park Avenue Investor LLC	Delaware
SLG Protective TRS Corp	Delaware, New York
SLG RSVP Member LLC	Delaware
SLG Tower 45 LLC	Delaware
Structured Finance TRS Corp.	Delaware

* The purpose of this entity is to engage in debt and preferred equity finance investments through various wholly-owned subsidiaries which are not included on this list.

EX-23.1

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Exhibit 23.1

Consent of Independent Registered Public Accounting Firm

        We consent to the incorporation by reference in the Registration Statements (i) on Form S-3 (Nos. 333-70111, 333-30394, 333-68828, 333-62434, 333-126058, 333-157641, 333-163914 and 333-167599) and in the related Prospectuses; (ii) on Form S-8 (Nos. 333-61555, 333-87485, 333-89964, 333-127014 and 333-143721) pertaining to the Stock Option and Incentive Plans of SL Green Realty Corp., and (iii) on Form S-8 (No. 333-148973) pertaining to the 2008 Employee Stock Purchase Plan of SL Green Realty Corp., of our reports dated February 28, 2012, with respect to the consolidated financial statements and schedules of SL Green Realty Corp., and the effectiveness of internal control over financial reporting of SL Green Realty Corp., our report dated February 16, 2010 with respect to the consolidated financial statements of Rock-Green, Inc., and our report dated February 2, 2011 with respect to the consolidated financial statements of 1515 Broadway Realty Corp., included in this Annual Report (Form 10-K) for the year ended December 31, 2011.

	/s/ Ernst & Young LLP
New York, New York February 28, 2012

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Exhibit 23.1

Consent of Independent Registered Public Accounting Firm

EX-31.1

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Exhibit 31.1

CERTIFICATION

I, Marc Holliday, certify that:

1.

I have reviewed this annual report on Form 10-K of SL Green Realty Corp. (the "registrant");

2.

Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.

Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.

The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a)

Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)

Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)

Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d)

Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5.

The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

(a)

All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

(b)

Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: February 28, 2012

/s/ MARC HOLLIDAY
Name:	Marc Holliday
Title:	Chief Financial Officer

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Exhibit 31.1

EX-31.2

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Exhibit 31.2

CERTIFICATION

I, James Mead, certify that:

1.

I have reviewed this annual report on Form 10-K of SL Green Realty Corp. (the "registrant");

2.

Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.

Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.

The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a)

Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)

Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)

Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d)

Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5.

The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

(a)

All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

(b)

Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: February 28, 2012

/s/ JAMES MEAD
Name:	James Mead
Title:	Chief Financial Officer

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Exhibit 31.2

CERTIFICATION

EX-32.1

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Exhibit 32.1

CERTIFICATION PURSUANT TO
18 U.S.C. SECTION 1350,
AS ADOPTED PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

        In connection with the Annual Report of SL Green Realty Corp. (the "Company") on Form 10-K as filed with the Securities and Exchange Commission on the date hereof (the "Report"), I, Marc Holliday, Chief Executive Officer of the Company, hereby certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

1.

The Report fully complies with the requirements of Section 13(a) or 15(d), as applicable, of the Securities Exchange Act of 1934; and

2.

The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/s/ MARC HOLLIDAY
Name:	Marc Holliday
Title:	Chief Executive Officer

February 28, 2012

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Exhibit 32.1

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

EX-32.2

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Exhibit 32.2

CERTIFICATION PURSUANT TO
18 U.S.C. SECTION 1350,
AS ADOPTED PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

        In connection with the Annual Report of SL Green Realty Corp. (the "Company") on Form 10-K as filed with the Securities and Exchange Commission on the date hereof (the "Report"), I, James Mead, Chief Financial Officer of the Company, hereby certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

1.

The Report fully complies with the requirements of Section 13(a) or 15(d), as applicable, of the Securities Exchange Act of 1934; and

2.

The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/s/ JAMES MEAD
Name:	James Mead
Title:	Chief Financial Officer

February 28, 2012

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Exhibit 32.2

XML

Debt and Preferred Equity Investments (Tables)

12 Months Ended

Dec. 31, 2011

Debt and Preferred Equity Investments

Summary of debt investments

Loan Type	December 31, 2011 Senior Financing		December 31, 2011 Amount Outstanding, Net of Discounts			December 31, 2010 Amount Outstanding, Net of Discounts			Initial Maturity Date
Other Loan(1)	$	15,000	$	3,500		$	3,500			September 2021
Mortgage/Mezzanine Loan(1)		205,000		64,973			60,407			February 2016
Mortgage/ Mezzanine Loan(1)		171,549		46,416			46,358			May 2016
Mezzanine Loan(1)		165,000		40,375			39,711			November 2016
Mezzanine Loan(1)(2)(3)(6)(7)		—		—			27,187			—
Mezzanine Loan(1)(7)(14)		—		—			15,697			—
Junior Participation(1)(4)(6)(7)		—		8,725			9,938			April 2008
Mortgage/Mezzanine Loan(1)(8)(18)		1,109,000		108,817			84,062			March 2017
Junior Participation(1)(6)		53,000		11,000			11,000			November 2012
Junior Participation(6)		61,250		10,875			10,875			June 2012
Junior Participation(6)		—		—			5,866			—
Junior Participation(5)(6)		—		—			47,484			—
Mortgage/ Mezzanine Loan(2)(9)		—		—			137,222			—
Junior Participation(11)		—		—			42,439			—
Junior Participation		—		—			9,200			—
Mezzanine Loan(1)(12)		—		—			202,136			—
Mezzanine Loan(1)(17)		75,000		7,650			15,000			July 2013
Mortgage(10)		—		86,339			86,339			June 2012
Mortgage(13)		28,500		3,000			26,000			February 2013
Mezzanine Loan(15)		796,693		8,392			13,536			August 2012
Mezzanine Loan(1)(16)		—		—			38,892			—
Mezzanine Loan(1)		177,000		17,112			—			May 2016
Junior Participation(1)		133,000		49,000			—			June 2016
Mezzanine Loan		170,000		60,000			—			August 2014
Mezzanine Loan(1)		55,000		35,000			—			July 2016
Mezzanine Loan(19)		81,000		34,940			—			October 2016
Mezzanine Loan		45,000		10,000			—			January 2015
Mezzanine Loan		467,000		30,747			—			July 2012
Other Loan		48,300		3,196			—			May 2012
Loan loss reserve(6)		—		(19,125	)		(40,461	)		—
	$	3,856,292	$	620,932		$	892,388

⁽¹⁾

This is a fixed rate loan.

⁽²⁾

The difference between the pay and accrual rates is included as an addition to the principal balance outstanding.

⁽³⁾

This loan was sold in February 2011. We realized $6.2 million of additional income upon the sale. A portion of this income is included in loan loss and other reserves, net of recoveries.

⁽⁴⁾

This loan is in default. The lender has begun foreclosure proceedings. Another participant holds a $12.2 million pari-pasu interest in this loan.

⁽⁵⁾

Gramercy was the borrower under this loan. We sold this loan, which consisted of mortgage and mezzanine financing, for $35.8 million, in May 2011. We realized $1.2 million of additional income upon the sale, which is included in loan loss and other reserves, net of recoveries.

⁽⁶⁾

Loan loss reserves are specifically allocated to investments. Our reserves reflect management's judgment of the probability and severity of losses based on Level 3 data. We cannot be certain that our judgment will prove to be correct or that reserves will be adequate over time to protect against potential future losses.

⁽⁷⁾

This loan is on non-accrual status.

⁽⁸⁾

Interest is added to the principal balance for this accrual only loan.

⁽⁹⁾

Gramercy held a pari passu interest in the mezzanine loan. This loan was repaid in March 2011.

⁽¹⁰⁾

We hold an 88% interest in the consolidated joint venture that acquired this loan. This investment is denominated in British Pounds.

⁽¹¹⁾

This loan was repaid in January 2011. We realized $1.3 million of additional income upon the sale. This income is included in preferred equity and investment income.

⁽¹²⁾

In March 2011, we contributed our debt investment with a carrying value of $286.6 million to a newly formed joint venture in which we hold a 50% interest. We realized $38.7 million of additional income upon the contribution. This income is included in preferred equity and investment income. The joint venture paid us approximately $111.3 million and also assumed $30 million of related floating rate financing which matures in June 2016 and carried a weighted average interest rate for the quarter of 1.16%. In May 2011, this joint venture took control of the underlying property as part of a recapitalization transaction. See Note 6.

⁽¹³⁾

In June 2011, we funded an additional $5.5 million and extended the maturity date of this loan to February 2013. In September 2011, we entered into a loan participation in the amount of $28.5 million on a $31.5 million mortgage. We have assigned our right as servicer to a third party. Due to our continued involvement with the loan, the portion that was participated out has been recorded in other assets and other liabilities in the accompanying consolidated balance sheet.

⁽¹⁴⁾

In May 2011, we acquired a substantial ownership interest in the 205,000-square-foot office condominium along with control of the asset. We provided a senior mezzanine loan as part of the sale of the condominium unit in 2007. The transaction included a consensual modification of that loan. See Note 3.

⁽¹⁵⁾

In connection with the extension of this loan, a portion of the mezzanine loan was converted to preferred equity. See note 6 to the next table.

⁽¹⁶⁾

In connection with a recapitalization of the investment, our mezzanine loan was converted to preferred equity. See note 7 to the next table.

⁽¹⁷⁾

In November 2011, we entered into a loan participation agreement in the amount of $7.4 million on a $15.0 million mortgage. Due to our continued involvement with the loan, the portion that was participated out has been recorded in other assets and other liabilities in the accompanying consolidated balance sheet.

⁽¹⁸⁾

The mezzanine loan is on non-accrual status.

⁽¹⁹⁾

As of December 31, 2011, we were committed to fund and additional $15.0 million in connection with this loan.

Summary of preferred equity investments

Type	December 31, 2011 Senior Financing		December 31, 2011 Amount Outstanding, Net of Discounts			December 31, 2010 Amount Outstanding, Net of Discounts			Initial Mandatory Redemption
Preferred equity(1)(4)(5)(7)	$	480,000	$	141,980		$	45,912			July 2014
Preferred equity(3)(4)(6)		975,890		51,000			46,372			August 2012
Preferred equity(4)		926,260		203,080			—			July 2016
Loan loss reserve(2)		—		(31,050	)		(20,900	)		—
	$	2,382,150	$	365,010		$	71,384

⁽¹⁾

This is a fixed rate investment.

⁽²⁾

Loan loss reserves are specifically allocated to investments. Our reserves reflect management's judgment of the probability and severity of losses based on Level 3 data. We cannot be certain that our judgment will prove to be correct and that reserves will be adequate over time to protect against potential future losses.

⁽³⁾

This investment is on non-accrual status.

⁽⁴⁾

The difference between the pay and accrual rates is included as an addition to the principal balance outstanding.

⁽⁵⁾

This investment was classified as held for sale at June 30, 2009, but as held-to-maturity for all periods subsequent to June 30, 2009. The reserve previously taken against this loan is being accreted up to the face amount through the maturity date.

⁽⁶⁾

In connection with the extension of this loan, a portion of the mezzanine loan was converted to preferred equity. See note 15 to the prior table.

⁽⁷⁾

In connection with a recapitalization of the investment, our mezzanine loan was converted to preferred equity. We also made an additional $50.0 million preferred equity loan. See note 16 to the prior table.

Rollforward of total allowance for loan loss reserves

	2011			2010			2009
Balance at beginning of year	$	61,361		$	93,844		$	98,916
Expensed		10,875			24,418			145,855
Recoveries		(4,370	)		(3,662	)		—
Charge-offs		(17,691	)		(53,239	)		(150,927	)
Balance at end of period	$	50,175		$	61,361		$	93,844

Summary of impaired loans, including non-accrual loans

	December 31, 2011						December 31, 2010
	Unpaid Principal Balance		Recorded Investment		Allowance Allocated		Unpaid Principal Balance		Recorded Investment		Allowance Allocated
With no related allowance recorded:
Commercial real estate	$	106,623	$	83,378	$	—	$	103,678	$	99,759	$	—
With an allowance recorded:
Commercial real estate		86,121		81,475		50,175		160,711		158,597		61,361
Total	$	192,744	$	164,853	$	50,175	$	264,389	$	258,356	$	61,361

Summary of average recorded investment in impaired loans, including non-accrual loans and the related investment and preferred equity income recognized

	Year Ended December 31,
	2011		2010
Average recorded investment in impaired loans	$	191,288	$	252,813
Investment and preferred equity income recognized		9,554		8,156

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Organization and Basis of Presentation (Details) (SL Green Operating Partnership)	12 Months Ended		1 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Jun. 30, 1997 Service Corporation
Organization
Economic interest in variable interest entity (as a percent)			95.00%
Percentage of ownership in SL Green Management LLC owned by operating partnership	100.00%
Noncontrolling interest in the operating partnership (as a percent)	3.12%	1.57%

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Benefit Plans (Tables)

12 Months Ended

Dec. 31, 2011

Benefit Plans

Schedule of contributions made to multi-employer plans

Benefit Plan	2011		2010		2009
Pension Plan	$	2,264	$	1,835	$	1,704
Health Plan		6,919		5,754		5,319
Other plans		5,111		4,143		3,638
Total plan contributions	$	14,294	$	11,732	$	10,661

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Schedule III-Real Estate And Accumulated Depreciation

12 Months Ended

Dec. 31, 2011

Schedule III-Real Estate And Accumulated Depreciation

Schedule III-Real Estate And Accumulated Depreciation

Schedule III—Real Estate And Accumulated Depreciation
December 31, 2011
(Dollars in thousands)

Column A	Column B		Column C Initial Cost				Column D Cost Capitalized Subsequent To Acquisition						Column E Gross Amount at Which Carried at Close of Period						Column F		Column G		Column H		Column I
Description	Encumbrances		Land		Building & Improvements		Land			Building & Improvements			Land		Building & Improvements		Total		Accumulated Depreciation		Date of Construction		Date Acquired		Life on Which Depreciation is Computed
673 First Ave(1)	$	29,906	$	—	$	35,727	$	—		$	10,882		$	—	$	46,609	$	46,609	$	17,091		1928		8/1997	Various
420 Lexington Ave(1)		187,182		—		107,832		—			120,447			—		228,279		228,279		67,823		1927		3/1998	Various
711 Third Avenue(1)		120,000		19,844		42,499		—			30,273			19,844		72,772		92,616		23,228		1955		5/1998	Various
555 W. 57th Street(1)		—		18,846		78,704		—			35,197			18,846		113,901		132,747		36,170		1971		1/1999	Various
317 Madison Ave(1)		—		21,205		85,559		—			28,227			21,205		113,786		134,991		41,912		1920		6/2001	Various
220 East 42nd Street(1)		190,431		50,373		203,727		635			35,937			51,008		239,664		290,672		56,526		1929		2/2003	Various
461 Fifth Avenue(1)		—		—		62,695		—			5,764			—		68,459		68,459		15,211		1988		10/2003	Various
750 Third Avenue(1)		—		51,093		205,972		—			28,846			51,093		234,818		285,911		47,037		1958		7/2004	Various
625 Madison Ave(1)		129,098		—		246,673		—			23,275			—		269,948		269,948		52,379		1956		10/2004	Various
485 Lexington Avenue(1)		450,000		77,517		326,825		765			80,013			78,282		406,838		485,120		83,879		1956		12/2004	Various
609 Fifth Avenue(1)		94,963		36,677		145,954		—			2,824			36,677		148,778		185,455		20,577		1925		6/2006	Various
1 Madison Avenue(1)		626,740		172,641		654,394		905			11,689			173,546		666,083		839,629		73,750		1960		8/2007	Various
331 Madison Avenue(1)		—		14,763		65,241		(2,630	)		(12,127	)		12,133		53,114		65,247		7,117		1923		4/2007	Various
333 West 34th Street(1)		—		36,711		146,880		—			20,808			36,711		167,688		204,399		19,038		1954		6/2007	Various
120 West 45th Street(1)		170,000		60,766		250,922		—			8,703			60,766		259,625		320,391		34,951		1998		1/2007	Various
810 Seventh Avenue(1)		—		114,077		476,386		—			32,510			114,077		508,896		622,973		68,408		1970		1/2007	Various
919 Third Avenue(1)(5)		500,000		223,529		1,033,198		35,410			6,647			258,939		1,039,845		1,298,784		132,047		1970		1/2007	Various
1185 Avenue of the Americas(1)		—		—		728,213		—			24,707			—		752,920		752,920		106,686		1969		1/2007	Various
180 Maiden Lane(1)(8)		279,332		132,697		309,627		—			—			132,697		309,627		442,324		1,097		1984		11/2011	Various
1350 Avenue of the Americas(1)		—		91,038		380,744		—			16,870			91,038		397,614		488,652		53,948		1966		1/2007	Various
100 Church Street(1)		—		32,494		79,996		—			43,305			32,494		123,301		155,795		8,323		1959		1/2010	Various
125 Park Avenue(1)		146,250		120,900		189,714		—			14,401			120,900		204,115		325,015		9,547		1923		10/2010	Various
2 Herald Square(7)		191,250		92,655		—		100,633			—			193,288		—		193,288		—		—		12/2010	Various
885 Third Avenue(7)		267,650		131,766		—		110,771			—			242,537		—		242,537		—		—		12/2010	Various
292 Madison Avenue(7)		59,099		23,803		—		(23,803	)		—			—		—		—		—		—		12/2010	Various
Williamsburg		—		3,677		14,708		2,523			(4,550	)		6,200		10,158		16,358		299		2010		12/2010	Various
521 Fifth Avenue(1)(8)		150,000		110,100		146,686		—			3,742			110,100		150,428		260,528		7,192		1929		1/2011	Various
1515 Broadway(1)		450,363		462,700		707,938		1,145			15,028			463,845		722,966		1,186,811		15,037		1972		4/2011	Various
110 East 42nd Street(1)		65,000		34,000		46,411		—			479			34,000		46,890		80,890		1,217		1921		5/2011	Various
51 East 42nd Street(1)				24,465		57,086		—			—			24,465		57,086		81,551		119		1913		11/2011	Various
1100 King Street—1-7 International Drive(2)		—		49,392		104,376		2,473			6,090			51,865		110,466		162,331		17,389		1983/1986		1/2007	Various
520 White Plains Road(2)		—		6,324		26,096		—			2,477			6,324		28,573		34,897		4,477		1979		1/2007	Various
115-117 Stevens Avenue(2)		—		5,933		23,826		—			5,058			5,933		28,884		34,817		4,687		1984		1/2007	Various
100 Summit Lake Drive(2)		—		10,526		43,109		—			5,292			10,526		48,401		58,927		6,938		1988		1/2007	Various
200 Summit Lake Drive(2)		—		11,183		47,906		—			2,241			11,183		50,147		61,330		7,215		1990		1/2007	Various
500 Summit Lake Drive(2)		—		9,777		39,048		—			3,834			9,777		42,882		52,659		5,355		1986		1/2007	Various
140 Grand Street(2)		—		6,865		28,264		—			2,982			6,865		31,246		38,111		4,443		1991		1/2007	Various
360 Hamilton Avenue(2)		—		29,497		118,250		—			10,502			29,497		128,752		158,249		17,222		2000		1/2007	Various
1-6 Landmark Square(3)		86,000		50,947		195,167		—			14,643			50,947		209,810		260,757		27,925		1973-1984		1/2007	Various
7 Landmark Square(3)		—		2,088		7,748		(367	)		(155	)		1,721		7,593		9,314		16		2007		1/2007	Various
300 Main Street(3)		11,500		3,025		12,889		—			1,164			3,025		14,053		17,078		2,012		2002		1/2007	Various
680 Washington Boulevard(3)(6)		—		11,696		45,364		—			3,900			11,696		49,264		60,960		6,594		1989		1/2007	Various
750 Washington Boulevard(3)(6)		—		16,916		68,849		—			3,800			16,916		72,649		89,565		9,892		1989		1/2007	Various
1010 Washington Boulevard(3)		—		7,747		30,423		—			3,203			7,747		33,626		41,373		4,466		1988		1/2007	Various
1055 Washington Boulevard(3)		—		13,516		53,228		—			1,675			13,516		54,903		68,419		7,419		1987		6/2007	Various
500 West Putnam Avenue(3)		24,563		11,210		44,782		—			3,503			11,210		48,285		59,495		6,104		1973		1/2007	Various
150 Grand Street(2)		—		1,371		5,446		—			9,278			1,371		14,724		16,095		37		1962		1/2007	Various
400 Summit Lake Drive(2)		—		38,889		—		285			—			39,174		—		39,174		—		—		1/2007	Various
125 Chubb Way(4)		—		5,884		25,958		—			16,244			5,884		42,202		48,086		315		2008		1/2008	Various
Other(6)		—		1,130		—		3,628			31,857			4,758		31,857		36,615		3,488		—		—	Various
Total	$	4,229,327	$	2,452,253	$	7,751,040	$	232,373		$	711,485		$	2,684,626	$	8,462,525	$	11,147,151	$	1,136,603

⁽¹⁾

Property located in New York, New York.

⁽²⁾

Property located in Westchester County, New York.

⁽³⁾

Property located in Connecticut.

⁽⁴⁾

Property located in New Jersey.

⁽⁵⁾

We own a 51% interest in this property.

⁽⁶⁾

Other includes tenant improvements at eEmerge, capitalized interest and corporate improvements.

⁽⁷⁾

See Note 4 to the consolidated financial statements.

⁽⁸⁾

We own a 49.9% interest in this property.

Schedule III—Real Estate And Accumulated Depreciation
December 31, 2011
(Dollars in thousands)

The changes in real estate for the three years ended December 31, 2011 are as follows:

	2011			2010			2009
Balance at beginning of year	$	8,890,064		$	8,257,100		$	8,201,789
Property acquisitions		2,276,308			703,721			16,059
Improvements		162,875			97,099			92,117
Retirements/disposals/deconsolidation		(182,096	)		(167,856	)		(52,865	)
Balance at end of year	$	11,147,151		$	8,890,064		$	8,257,100

        The aggregate cost of land, buildings and improvements, before depreciation, for Federal income tax purposes at December 31, 2011 was approximately $7.8 billion.

        The changes in accumulated depreciation, exclusive of amounts relating to equipment, autos, and furniture and fixtures, for the three years ended December 31, 2011, are as follows:

	2011			2010			2009
Balance at beginning of year	$	916,293		$	738,422		$	546,545
Depreciation for year		245,421			209,472			210,436
Retirements/disposals/deconsolidation		(25,111	)		(31,601	)		(18,559	)
Balance at end of year	$	1,136,603		$	916,293		$	738,422

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Equity (Details 3) (USD $)	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
Summary of restricted stock
Compensation expense related to long-term compensation plans, restricted stock and stock options capitalized to assets	$ 3,400,000	$ 2,200,000	$ 1,700,000
Stock options
Stock based compensation
Options expiration period (in years)	P10Y
Options vesting period, minimum (in years)	P1Y
Options vesting period, maximum (in years)	P5Y
Period of commencement of option vesting, from date of grant (in years)	1
Weighted average assumptions used for estimation of fair value of each stock option
Dividend yield (as a percent)	2.00%	2.00%	2.15%
Expected life of option (in years)	4.2	5.1	5
Risk-free interest rate (as a percent)	1.00%	2.09%	2.17%
Expected stock price volatility (as a percent)	47.98%	50.07%	53.08%
Weighted average fair value of awards granted during the year	4,647,554	4,333,281	8,276,500
Options Outstanding
Balance at beginning of year (in shares)	1,353,002	1,324,221	937,706
Granted (in shares)	212,400	180,250	443,850
Exercised (in shares)	(243,901)	(109,636)	(22,000)
Lapsed or cancelled (in shares)	(44,301)	(41,833)	(35,335)
Balance at end of period (in shares)	1,277,200	1,353,002	1,324,221
Options exercisable at end of period (in shares)	644,429	631,224	595,851
Weighted Average Exercise Price
Balance at beginning of year (in dollars per share)	$ 58.85	$ 56.74	$ 61.33
Granted (in dollars per share)	$ 66.42	$ 62.00	$ 46.08
Exercised (in dollars per share)	$ 40.48	$ 31.49	$ 28.17
Lapsed or cancelled (in dollars per share)	$ 65.89	$ 77.33	$ 62.75
Balance at end of period (in dollars per share)	$ 63.37	$ 58.85	$ 56.74
Options exercisable at end of period (in dollars per share)	$ 72.31	$ 69.42	$ 62.17
Exercise price of options granted, low end of the range (in dollars per share)	$ 20.67
Exercise price of options granted, high end of the range (in dollars per share)	$ 137.18
Remaining weighted average contractual life of the options outstanding (in years)	4.0
Remaining weighted average contractual life of the options exercisable (in years)	4.0
Share-based compensation, additional disclosures
Compensation expense	4,700,000	4,400,000	2,800,000
Total unrecognized compensation cost related to unvested stock awards	8,400,000
Weighted average period for recognition of compensation cost related to unvested stock awards (in years)	3
Restricted Stock Awards
Weighted average assumptions used for estimation of fair value of each stock option
Weighted average fair value of awards granted during the year	21,768,084	28,269,983	4,979,218
Share-based compensation, additional disclosures
Compensation expense	17,365,401	15,327,206	23,301,744
Total unrecognized compensation cost related to unvested stock awards	14,700,000
Weighted average period for recognition of compensation cost related to unvested stock awards (in years)	2
Annual award vesting rate, low end of range (as a percent)	15.00%
Annual award vesting rate, high end of range (as a percent)	35.00%
Summary of restricted stock
Balance at beginning of year (in shares)	2,728,290	2,330,532	1,824,190
Granted (in shares)	185,333	400,925	506,342
Cancelled (in shares)	(1,167)	(3,167)
Balance at end of period (in shares)	2,912,456	2,728,290	2,330,532
Vested during the period (in shares)	66,299	153,644	420,050
Fair value of restricted stock vested during the period	4,300,000	16,600,000	28,000,000
LTIP units
Weighted average assumptions used for estimation of fair value of each stock option
Weighted average fair value of awards granted during the year	$ 8,500,000

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Corporate Indebtedness (Details) (USD $)	3 Months Ended					12 Months Ended				1 Months Ended	12 Months Ended			12 Months Ended		12 Months Ended					1 Months Ended			1 Months Ended							1 Months Ended	12 Months Ended			1 Months Ended		12 Months Ended		1 Months Ended				1 Months Ended
	Sep. 30, 2011	Jun. 30, 2011	Sep. 30, 2010	Jun. 30, 2010	Mar. 31, 2010	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009	Dec. 31, 2011 Joint venture	Nov. 30, 2011 2011 Revolving Credit Facility	Dec. 31, 2011 2011 Revolving Credit Facility y	Dec. 31, 2011 2011 Revolving Credit Facility Maximum	Nov. 30, 2011 2011 Revolving Credit Facility Maximum	Dec. 31, 2011 2011 Revolving Credit Facility Minimum	Nov. 30, 2011 2011 Revolving Credit Facility Minimum	Dec. 31, 2011 2007 Revolving Credit Facility	Dec. 31, 2011 2007 Revolving Credit Facility Maximum	Dec. 31, 2011 2007 Revolving Credit Facility Minimum	Dec. 31, 2011 Senior Unsecured Notes	Dec. 31, 2010 Senior Unsecured Notes	Jan. 31, 2011 5.15% Senior unsecured notes maturing on January 15, 2011	Apr. 30, 2010 5.15% Senior unsecured notes maturing on January 15, 2011	Dec. 31, 2010 5.15% Senior unsecured notes maturing on January 15, 2011 y	Apr. 30, 2010 5.875% Senior unsecured notes maturing on August 15, 2014	Dec. 31, 2011 5.875% Senior unsecured notes maturing on August 15, 2014 y	Dec. 31, 2010 5.875% Senior unsecured notes maturing on August 15, 2014	Dec. 31, 2011 6.00% Senior unsecured notes maturing on March 31, 2016 y	Dec. 31, 2010 6.00% Senior unsecured notes maturing on March 31, 2016	Dec. 31, 2011 7.75% Senior unsecured notes maturing on March 15, 2020 y	Dec. 31, 2010 7.75% Senior unsecured notes maturing on March 15, 2020	Apr. 30, 2010 4.00% Senior unsecured notes maturing on June 15, 2025	Dec. 31, 2011 4.00% Senior unsecured notes maturing on June 15, 2025 y	Dec. 31, 2010 4.00% Senior unsecured notes maturing on June 15, 2025	Jun. 30, 2010 4.00% Senior unsecured notes maturing on June 15, 2025	Apr. 30, 2010 3.00% Senior unsecured notes maturing on March 30, 2027	Mar. 31, 2007 3.00% Senior unsecured notes maturing on March 30, 2027	Dec. 31, 2010 3.00% Senior unsecured notes maturing on March 30, 2027	Dec. 31, 2011 3.00% Senior unsecured notes maturing on March 30, 2027 y	Oct. 31, 2010 3.00% Senior unsecured notes maturing on October 15, 2017	Dec. 31, 2011 3.00% Senior unsecured notes maturing on October 15, 2017 y	Dec. 31, 2010 3.00% Senior unsecured notes maturing on October 15, 2017	Dec. 31, 2011 5.00% senior unsecured notes maturing on August 15, 2018 y	Jun. 30, 2005 Trust preferred securities	Dec. 31, 2011 Trust preferred securities Q	Dec. 31, 2011 Mortgages and other loans payable
Corporate Indebtedness
Revolving credit facility, maximum borrowing capacity										$ 1,500,000,000	$ 1,500,000,000					$ 1,500,000,000
Interest rate, description										LIBOR	LIBOR					30-day LIBOR
Interest rate added to base rate (as a percent)											1.50%	1.85%	1.85%	1.00%	1.00%		1.10%	0.70%
Extension option available (in years)											1
Extension fee required to be paid (as a percent)											0.20%
Maximum borrowing capacity, optional expansion											1,750,000,000
Fee on the unused balance, payable quarterly in arrears (as a percent)											0.20%						0.20%	0.125%
Facility fee on total commitments, payable quarterly in arrears (as a percent)											0.35%	0.45%		0.175%
Outstanding under line of credit facility						350,000,000	650,000,000				350,000,000
Letters of credit						99,300,000
Ability to borrow under line of credit facility											1,100,000,000
Debt disclosures by scheduled maturity date
Unpaid Principal Balance																			1,339,392,000						98,578,000		275,000,000		250,000,000			657,000						120,157,000		345,000,000		250,000,000
Accreted Balance						1,270,656,000	1,100,545,000												1,270,656,000	1,100,545,000			84,823,000		98,578,000	98,578,000	274,804,000	274,764,000	250,000,000	250,000,000		657,000	657,000				123,171,000	119,423,000		277,629,000	268,552,000	249,565,000
Coupon Rate (as a percent)																							5.15%		5.875%	5.875%	6.00%	6.00%	7.75%	7.75%		4.00%	4.00%				3.00%	3.00%		3.00%	3.00%	5.00%		5.61%
Effective Rate (as a percent)																							5.90%		6.10%	6.10%	6.20%	6.20%	7.75%	7.75%		4.00%	4.00%				5.46%	5.46%		7.125%	7.125%	5.00%
Term (in years)																							7		10		10		10			20						20		7		7
Callable value of exchangeable senior debentures as percentage of par																																100.00%
Adjusted exchange rate for the debentures (in shares)																																7.7461
Principal amount of debentures, basis for conversion																																1,000
Adjusted reference dividend for debentures																																1.3491
Repayment of debt																					84,800,000	38,800,000		50,000,000							13,200,000		115,400,000		13,000,000		41,700,000
(Gain) loss on early extinguishment of debt	67,000	(971,000)	511,000	1,276,000	113,000	(904,000)	1,900,000	(86,006,000)																									300,000				500,000
Equity portion of convertible debt, remained unamortized as of the balance sheet date																																		13,100,000				700,000		67,400,000
Amount of convertible debt recorded in equity																																				66,600,000			78,300,000
Debt instrument issued, value																																				750,000,000			345,000,000				100,000,000
Premium on sale price to calculate exchange price of notes (as a percent)																																						25.00%		30.00%
Exchange price (in dollars per share)																																						$ 173.30		$ 85.81
Net proceeds from offering of debt																																				736,000,000			336,500,000
Maximum consecutive quarters up to which interest payment can be deferred																																												8
Scheduled Amortization
2012																																													52,443,000
2013																																													52,470,000
2014																																													50,322,000
2015																																													40,845,000
2016																																													39,426,000
Thereafter																																													158,551,000
Total amortization of debt																																													394,057,000
Principal Repayments
2012									176,457,000
2013									93,683,000																																				516,179,000
2014									123,983,000																																				597,454,000
2015									102,476,000																																				229,537,000
2016									527,814,000		350,000,000																																		516,974,000
Thereafter									800,102,000																																			100,000,000	2,119,639,000
Total principal repayments									1,824,515,000		350,000,000																																	100,000,000	3,979,783,000
Scheduled Amortization and Principal Repayments
2012						171,866,000													119,423,000
2013						568,649,000
2014						746,354,000													98,578,000
2015						271,039,000													657,000
2016						1,181,204,000													274,804,000
Thereafter						3,155,384,000													777,194,000
Total amortization of debt and principal repayments						6,094,496,000													1,270,656,000
Interest expense
Interest expense						287,921,000	232,794,000	236,961,000
Interest income						(2,004,000)	(2,146,000)	(4,306,000)
Interest expense, net						285,917,000	230,648,000	232,655,000
Interest capitalized						$ 5,123,000		$ 98,000

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Segment Information (Details 2) (USD $) In Thousands, unless otherwise specified	3 Months Ended								12 Months Ended
	Dec. 31, 2011	Sep. 30, 2011	Jun. 30, 2011	Mar. 31, 2011	Dec. 31, 2010	Sep. 30, 2010	Jun. 30, 2010	Mar. 31, 2010	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
Reconciliation of income from continuing operations to net income attributable to SL Green common stockholders
Income from continuing operations before equity in net gain on sale of unconsolidated joint venture/ partial interest and purchase price fair value adjustments									$ 124,144	$ 147,686	$ 64,497
Equity in net gain on sale of interest in unconsolidated joint venture/ real estate	(114)	3,032			1,633	520	126,769		2,918	128,921	6,691
Purchase price fair value adjustment	8,306	999	475,102	13,788					498,195
Income from continuing operations									625,257	276,607	71,188
Net income from discontinued operations	1,116	1,116	1,675	1,873	533	2,211	2,403	1,917	5,780	7,064	7,318
Gain (loss) on sale of discontinued operations			46,085			35,485			46,085	35,485	(6,841)
Net income									677,122	319,156	71,665
Net income attributable to noncontrolling interests in the operating partnership									(14,629)	(4,574)	(1,221)
Net income attributable to noncontrolling interests in other partnerships									(15,083)	(14,007)	(12,900)
Net income attributable to SL Green	10,351	14,624	534,003	88,432	14,754	119,045	144,583	22,193	647,410	300,575	57,544
Preferred stock dividends	(7,543)	(7,545)	(7,545)	(7,545)	(7,545)	(7,545)	(7,545)	(7,114)	(30,178)	(29,749)	(19,875)
Net income attributable to SL Green common stockholders	$ 2,808	$ 7,079	$ 526,458	$ 80,887	$ 7,209	$ 111,500	$ 137,038	$ 15,079	$ 617,232	$ 270,826	$ 37,669

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Significant Accounting Policies (Details2) (USD $)	12 Months Ended
	Dec. 31, 2011 m	Dec. 31, 2010
Cash and cash equivalents and other
Maximum original maturity period of highly liquid investments to be considered as cash equivalents (in months)	3
Net unrealized gains related to marketable securities included in accumulated other comprehensive loss	$ 6,900,000	$ 9,700,000
Investment in Marketable Securities
Aggregate net proceeds	6,200,000	2,800,000
Realized gains	4,500,000	1,900,000
Level 1 | Equity marketable securities
Investment in Marketable Securities
Total marketable securities available-for-sale	8,065,000	12,357,000
Level 2 | Commercial mortgage-backed securities
Investment in Marketable Securities
Total marketable securities available-for-sale	13,369,000	17,445,000
Level 3
Investment in Marketable Securities
Cost Basis	3,900,000	4,300,000
Level 3 | Rake bonds
Investment in Marketable Securities
Total marketable securities available-for-sale	3,889,000	4,250,000
Estimated fair value
Investment in Marketable Securities
Total marketable securities available-for-sale	$ 25,323,000	$ 34,052,000

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Related Party Transactions (Details) (USD $)	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
Amounts due from related parties
Due from joint ventures	$ 477,000	$ 1,062,000
Other	3,524,000	5,233,000
Related party receivables	4,001,000	6,295,000
Alliance Building Services
Related Party Transactions
Profit participation from related party	2,700,000	2,200,000	1,800,000
Payments made for services	16,100,000	14,200,000	14,900,000
Nancy Peck and Company
Related Party Transactions
Space at 420 Lexington Avenue leased (in square feet)	1,003
Lease rent due per year	35,516
Increased lease rent due per year beginning in year seven	40,000
Entity with Stephen L Green ownership interest
Related Party Transactions
Property management fees from related party	420,300	390,700	351,700
Sonnenblick
Related Party Transactions
Payment for purchase of sub-leasehold interest and refinancing			$ 428,000

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Commitments and Contingencies (Details 3) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2011 y
Commitments and Contingencies
Initial term of noncancellable operating leases, minimum (in years)	1
Capital lease
2012	$ 1,555
2013	1,555
2014	1,555
2015	1,592
2016	1,707
Thereafter	42,351
Total minimum lease payments	50,315
Less amount representing interest	(33,203)
Present value of net minimum lease payments	17,112
Non-cancellable operating leases
2012	33,429
2013	33,429
2014	33,429
2015	33,429
2016	33,533
Thereafter	615,450
Total minimum lease payments	$ 782,699

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Equity (Details 5) (USD $) In Thousands, except Share data, unless otherwise specified	3 Months Ended								12 Months Ended
	Dec. 31, 2011	Sep. 30, 2011	Jun. 30, 2011	Mar. 31, 2011	Dec. 31, 2010	Sep. 30, 2010	Jun. 30, 2010	Mar. 31, 2010	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
Basic Earnings:
Net income attributable to SL Green common stockholders	$ 2,808	$ 7,079	$ 526,458	$ 80,887	$ 7,209	$ 111,500	$ 137,038	$ 15,079	$ 617,232	$ 270,826	$ 37,669
Effect of Dilutive Securities:
Redemption of units to common shares									14,629	4,574	1,221
Diluted Earnings:
Income attributable to SL Green common stockholders									$ 631,861	$ 275,400	$ 38,890
Basic Shares:
Shares available to common stockholders									83,762,000	78,101,000	69,735,000
Effect of Dilutive Securities
Redemption of units to common shares									1,985,000	1,321,000	2,230,000
Stock-based compensation plans (in shares)									497,000	339,000	79,000
Diluted Shares									86,244,000	79,761,000	72,044,000
Common stock shares excluded from the diluted shares outstanding									680,000	804,800	772,529
3.0% exchangeable senior debentures due 2017
Effect of Dilutive Securities
Interest rate (as a percent)	3.00%				3.00%				3.00%	3.00%
3.0% exchangeable senior debentures due 2027
Effect of Dilutive Securities
Interest rate (as a percent)	3.00%				3.00%				3.00%	3.00%
4.0% exchangeable senior debentures due 2025
Effect of Dilutive Securities
Interest rate (as a percent)	4.00%				4.00%				4.00%	4.00%

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Financial Instruments: Derivatives and Hedging (Details) (USD $)	1 Months Ended	12 Months Ended
	Mar. 31, 2010 y	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
Financial Instruments: Derivatives and Hedging
Loss from settlement of hedges included in accumulated other comprehensive loss		$ 18,000,000
Share of joint venture accumulated other comprehensive loss		17,400,000
Net loss on forward swaps	19,500,000
Amortization period of the loss from the settlement of the hedges (in years)	10
Accumulated Other Comprehensive Loss relating to derivatives		35,400,000	32,300,000
Estimated current balance held in accumulated other comprehensive income to be reclassified into earnings within the next 12 months		1,700,000
Amount of (Loss) or Gain Recognized in Other Comprehensive Loss (Effective Portion) on derivatives qualifying as hedges		(16,049,000)	(17,619,000)	(15,560,000)
Amount of (Loss) or Gain Reclassified from Accumulated Other Comprehensive Loss into Interest Expense/ Equity in net income of unconsolidated joint ventures (Effective Portion) on derivatives qualifying as hedges		(12,625,000)	(12,661,000)	(12,293,000)
Amount of (Loss) or Gain Recognized in Interest Expense/Equity in Net Income of Unconsolidated Joint Ventures (Ineffective Portion) on derivatives qualifying as hedges		(16,000)	(1,329,000)	(1,000)
Amount of (Loss) or Gain Recognized in Interest Expense/Equity in Net Income of Unconsolidated Joint Ventures (Ineffective Portion) on derivatives not qualifying as hedges		(82,000)
Interest Rate Cap expiring in February, 2012
Financial Instruments: Derivatives and Hedging
Notional Value		110,180,000
Strike Rate (as a percent)		6.00%
Interest Rate Cap expiring in January, 2012
Financial Instruments: Derivatives and Hedging
Notional Value		139,672,000
Strike Rate (as a percent)		5.00%
Interest Rate Swap
Financial Instruments: Derivatives and Hedging
Notional Value		30,000,000
Strike Rate (as a percent)		2.295%
Currency Hedge
Financial Instruments: Derivatives and Hedging
Notional Value		20,748,000
Strike Rate		1.55185
Level 2
Financial Instruments: Derivatives and Hedging
Fair Value		1,900,000
Level 2 | Interest Rate Swap
Financial Instruments: Derivatives and Hedging
Fair Value		(1,716,000)
Level 2 | Currency Hedge
Financial Instruments: Derivatives and Hedging
Fair Value		$ (151,000)

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Equity (Details) (USD $)	Dec. 31, 2011	Dec. 31, 2010
Equity
Authorized capital stock (in shares)	260,000,000
Authorized shares, par value (in dollars per share)	$ 0.01
Common stock, shares authorized	160,000,000	160,000,000
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Excess stock, shares authorized	75,000,000
Excess stock, par value (in dollars per share)	$ 0.01
Preferred stock, shares authorized	25,000,000
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares issued	89,210,000	81,675,000
Common stock, shares outstanding net of treasury shares	85,783,000	78,307,000

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Deferred Costs (Details) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2011	Dec. 31, 2010
Deferred Costs
Deferred financing	$ 113,620	$ 86,256
Deferred leasing	238,394	200,633
Deferred costs, gross	352,014	286,889
Less accumulated amortization	(141,228)	(114,372)
Deferred costs, net	$ 210,786	$ 172,517

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Commitments and Contingencies

12 Months Ended

Dec. 31, 2011

Commitments and Contingencies

Commitments and Contingencies

16. Commitments and Contingencies

        We and our Operating Partnership are not presently involved in any material litigation nor, to our knowledge, is any material litigation threatened against us or our properties, other than routine litigation arising in the ordinary course of business. Management believes the costs, if any, incurred by us and our Operating Partnership related to this litigation will not materially affect our financial position, operating results or liquidity.

        We have entered into employment agreements with certain executives, which expire between January 2013 and December 2013. The minimum cash-based compensation, including base salary and guaranteed bonus payments, associated with these employment agreements totaled approximately $4.5 million for 2012. In addition these employment agreements provide for deferred compensation awards based on our stock price and which were valued at approximately $1.0 million on the grant date. The value of these awards may change based on fluctuations in our stock price.

        We maintain "all-risk" property and rental value coverage (including coverage regarding the perils of flood, earthquake and terrorism) within two property insurance portfolios and liability insurance. The first property portfolio maintains a blanket limit of $750.0 million per occurrence, including terrorism, for the majority of the New York City properties in our portfolio. This policy expires on December 31, 2012. The second portfolio maintains a limit of $700.0 million per occurrence, including terrorism, for some New York City properties and the majority of the Suburban properties. The second property policy expires on December 31, 2012. Additional coverage may be purchased on a stand-alone basis for certain assets. We maintain liability policies which cover all our properties and provide limits of $201.0 million per occurrence and in the aggregate per location. The liability policies expire on October 31, 2012.

        In October 2006, we formed a wholly-owned taxable REIT subsidiary, Belmont Insurance Company, or Belmont, to act as a captive insurance company and be one of the elements of our overall insurance program. Belmont was formed in an effort to, among other reasons, stabilize to some extent the fluctuations of insurance market conditions. Belmont is licensed in New York to write Terrorism, NBCR (nuclear, biological, chemical, and radiological), General Liability, Environmental Liability and D&O coverage. Belmont has purchased reinsurance to reinsure the retained insurance risks not covered by other insurance.

        Belmont is a form of self-insurance. We are responsible for the liquidity and capital resources of Belmont and its accounts are included in our consolidated financial statements. All losses required to be paid by Belmont are recorded as losses by us.

        Belmont had loss reserves of approximately $6.4 million and $6.1 million as of December 31, 2011 and 2010, respectively.

        In March 1998, we acquired an operating sub-leasehold position at 420 Lexington Avenue. The operating sub-leasehold position required annual ground lease payments totaling $6.0 million and sub-leasehold position payments totaling $1.1 million (excluding an operating sub-lease position purchased in January 1999). In June 2007, we renewed and extended the maturity date of the ground lease at 420 Lexington Avenue through December 31, 2029, with an option for further extension through 2080. Ground lease rent payments through 2029 will total approximately $10.9 million per year. Thereafter, the ground lease will be subject to a revaluation by the parties thereto.

        In June 2009, we acquired an operating sub-leasehold position at 420 Lexington Avenue for approximately $7.7 million. These sub-leasehold positions were scheduled to mature in December 2029. In October 2009, we acquired the remaining sub-leasehold position for $7.6 million.

        The property located at 711 Third Avenue operates under an operating sub-lease, which expires in 2083. Under the sub-lease, we were responsible for ground rent payments of $1.55 million annually through July 2011 on the 50% portion of the fee we do not own. The ground rent was reset in July 2011. Following the reset, we are responsible for ground rent payments of $5.25 million annually through July 2016 and then $5.5 million annually thereafter on the 50% portion of the fee we do not own.

        The property located at 461 Fifth Avenue operates under a ground lease (approximately $2.1 million annually) with a term expiration date of 2027 and with two options to renew for an additional 21 years each, followed by a third option for 15 years. We also have an option to purchase the ground lease for a fixed price on a specific date.

        The property located at 625 Madison Avenue operates under a ground lease (approximately $4.6 million annually) with a term expiration date of 2022 and with two options to renew for an additional 23 years.

        The property located at 1185 Avenue of the Americas operates under a ground lease (approximately $6.9 million annually) with a term expiration of 2020 and with an option to renew for an additional 23 years.

        In April 1988, the SL Green predecessor entered into a lease agreement for the property at 673 First Avenue, which has been capitalized for financial statement purposes. Land was estimated to be approximately 70% of the fair market value of the property. The portion of the lease attributed to land is classified as an operating lease and the remainder as a capital lease. The initial lease term is 49 years with an option for an additional 26 years. Beginning in lease years 11 and 25, the lessor is entitled to additional rent as defined by the lease agreement.

        We continue to lease the property located at 673 First Avenue, which has been classified as a capital lease with a cost basis of $12.2 million and cumulative amortization of $6.0 million and $5.8 million at December 31, 2011 and 2010, respectively.

        The following is a schedule of future minimum lease payments under capital leases and non-cancellable operating leases with initial terms in excess of one year as of December 31, 2011 (in thousands):

December 31,	Capital lease			Non-cancellable operating leases
2012	$	1,555		$	33,429
2013		1,555			33,429
2014		1,555			33,429
2015		1,592			33,429
2016		1,707			33,533
Thereafter		42,351			615,450
Total minimum lease payments		50,315		$	782,699
Less amount representing interest		(33,203	)
Present value of net minimum lease payments	$	17,112

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Financial Instruments: Derivatives and Hedging (Tables)

12 Months Ended

Dec. 31, 2011

Financial Instruments: Derivatives and Hedging

Schedule of notional and fair value of derivative financial instruments and foreign currency hedges

	Notional Value		Strike Rate	Effective Date		Expiration Date		Fair Value
Interest Rate Cap	$	110,180	6.000%		2/2011		2/2012	$	—
Interest Rate Cap	$	139,672	5.000%		1/2011		1/2012	$	—
Interest Rate Swap	$	30,000	2.295%		7/2010		6/2016	$	(1,716	)
Currency Hedge	$	20,748	1.55185GBP-USD		9/2010		12/2012	$	(151	)

Schedule of effect of derivative financial instruments on Consolidated Statements of Income

		Amount of (Loss) or Gain Recognized in Other Comprehensive Loss (Effective Portion) For the Year Ended December 31,									Amount of (Loss) or Gain Reclassified from Accumulated Other Comprehensive Loss into Interest Expense/ Equity in net income of unconsolidated joint ventures (Effective Portion) For the Year Ended December 31,									Amount of (Loss) or Gain Recognized in Interest Expense (Ineffective Portion) For the Year Ended
Designation\Cash Flow	Derivative	2011			2010			2009			2011			2010			2009			2011			2010			2009
Qualifying	Interest Rate Swaps/Caps	$	(16,049	)	$	(17,619	)	$	(15,560	)	$	(12,625	)	$	(12,661	)	$	(12,293	)	$	(16	)	$	(1,329	)	$	(1	)
Non-qualifying	Interest Rate Caps/Currency Hedges		—			—			—			—			—			—		$	(82	)		—			—

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Mortgages and Other Loans Payable (Tables)

12 Months Ended

Dec. 31, 2011

Mortgages and Other Loans Payable.

Schedule of first mortgages and other loans payable collateralized by the respective properties and assignment of leases

Property(1)	Maturity Date		Interest Rate(2)			December 31, 2011		December 31, 2010
711 Third Avenue		06/2015		4.99	%	$	120,000	$	120,000
420 Lexington Avenue(3)		09/2016		7.15	%		187,182		149,141
673 First Avenue		02/2013		5.67	%		29,906		30,781
220 East 42nd Street		11/2013		5.24	%		190,431		194,758
625 Madison Avenue		11/2015		7.22	%		129,098		132,209
609 Fifth Avenue		10/2013		5.85	%		94,963		96,502
609 Partners, LLC(15)		07/2014		5.00	%		31,721		31,722
485 Lexington Avenue		02/2017		5.61	%		450,000		450,000
120 West 45th Street		02/2017		6.12	%		170,000		170,000
919 Third Avenue(4)		06/2023		5.12	%		500,000		219,879
300 Main Street		02/2017		5.75	%		11,500		11,500
500 West Putnam		01/2016		5.52	%		24,563		25,000
One Madison Avenue		05/2020		5.91	%		626,740		640,076
125 Park Avenue		10/2014		5.75	%		146,250		146,250
2 Herald Square		04/2017		5.36	%		191,250		191,250
885 Third Avenue		07/2017		6.26	%		267,650		267,650
292 Madison Avenue(14)		08/2017		6.17	%		59,099		59,099
110 East 42nd Street(5)		07/2017		5.81	%		65,000		—
Landmark Square		12/2016		4.00	%		86,000		—
Other loan payable(13)		09/2019		8.00	%		50,000		—
Total fixed rate debt						$	3,431,353	$	2,935,817
100 Church Street(6)		—		—		$	—	$	139,672
Landmark Square(7)		—		—			—		110,180
28 West 44th Street(8)		—		—			—		122,007
521 Fifth Avenue(9)		04/2013		2.25	%		150,000		—
1515 Broadway(10)		12/2014		3.50	%		450,363		—
180 Maiden Lane(16)		11/2016		2.56	%		279,332		—
Other loan payable(11)		06/2013		3.47	%		62,792		62,792
Other loan payable(12)		—		—			—		30,000
Total floating rate debt						$	942,487	$	464,651
Total mortgages and other loans payable						$	4,373,840	$	3,400,468

⁽¹⁾

Held in bankruptcy remote special purpose entities.

⁽²⁾

Effective interest rate for the quarter ended December 31, 2011.

⁽³⁾

We increased this loan by $40.0 million in March 2011.

⁽⁴⁾

We own a 51% controlling interest in the joint venture that is the borrower on this loan. This loan is non-recourse to us. In June 2011, our joint venture replaced the $219.9 million 6.87% mortgage that was due to mature in August 2011 with a $500.0 million mortgage.

⁽⁵⁾

We took control of this property in May 2011 and assumed the mortgage as part of the transaction. This loan consists of a $65.0 million A-tranche and an $18.1 million B-tranche. The B-tranche does not accrue interest and is due only under certain circumstances as described in the loan agreement.

⁽⁶⁾

This mortgage was repaid in March 2011.

⁽⁷⁾

The final loan renewal option was exercised in December 2010. This loan was repaid in May 2011.

⁽⁸⁾

This property was sold in May 2011 and the related mortgage was repaid.

⁽⁹⁾

We assumed a $140.0 million mortgage in connection with the acquisition of the remaining partnership interest in January 2011. As a result, we have consolidated this investment since January 2011. The mortgage was schedule to mature in April 2011. In April 2011, we refinanced the property with a new $150.0 million 2-year mortgage which carries a floating rate of interest of 200 basis points over the 30-day LIBOR.

⁽¹⁰⁾

We acquired the remaining interest in this joint venture in April 2011. As a result, we have consolidated this investment since April 2011.

⁽¹¹⁾

This loan bears interest at 250 basis points over the three month GBP LIBOR. This loan is denominated in British Pounds.

⁽¹²⁾

In March 2011, this loan was assigned to a joint venture. See Note 5.

⁽¹³⁾

This loan is secured by a portion of a preferred equity investment.

⁽¹⁴⁾

This loan is included in liabilities related to assets held for sale at December 31, 2011 as the property is held for sale as of that date. See Note 4.

⁽¹⁵⁾

As part of an acquisition, the Operating Partnership issued 63.9 million units of our 5.0% Series E preferred units, or the Series E units, with a liquidation preference of $1.00 per unit. As of December 31, 2011, 32.2 million Series E units had been redeemed.

⁽¹⁶⁾

In connection with this obligation, SLG has executed a master lease agreement. SLG's partner has executed a contribution agreement to reflect its pro rata obligation under the master lease.

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Rental Income (Details) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2011
Consolidated properties
Approximate future minimum rents to be received over the next five years and thereafter for non-cancelable operating leases
2012	$ 955,920
2013	919,388
2014	843,069
2015	755,334
2016	673,792
Thereafter	3,159,160
Total minimum lease payments	7,306,663
Unconsolidated properties
Approximate future minimum rents to be received over the next five years and thereafter for non-cancelable operating leases
2012	199,659
2013	196,868
2014	189,078
2015	184,372
2016	179,526
Thereafter	829,419
Total minimum lease payments	$ 1,778,922

XML

Property Acquisitions (Tables)

12 Months Ended

Dec. 31, 2011

Property Acquisitions

Summary of combined results of operations on an unaudited pro forma basis

	December 31, 2011		December 31, 2010
Actual revenues since acquisition	$	106.9	$	—
Actual net income since acquisition	$	21.5	$	—
Pro forma revenues	$	1,292.1	$	1,210.0
Pro forma operating income	$	129.0	$	135.4
Pro forma earnings per common share-basic	$	7.41	$	3.66
Pro forma earnings per common share and common share equivalents-diluted	$	7.37	$	3.65
Pro forma common shares-basic		83,762		78,101
Pro forma common share and common share equivalents-diluted		86,244		79,761

110 East 42nd Street

Property Acquisitions

Schedule of allocation of the purchase price of the assets acquired and liabilities assumed

Land	$	34,000
Building		46,411
Above market lease value		823
Acquired in-place leases		5,396
Assets acquired		86,630
Below market lease value		2,326
Liabilities assumed		2,326
Purchase price allocation	$	84,304
Net consideration funded at closing	$	2,744
Debt assumed	$	65,000

1515 Broadway

Property Acquisitions

Schedule of allocation of the purchase price of the assets acquired and liabilities assumed

Land	$	462,700
Building		707,938
Above market lease value		18,298
Acquired in-place leases		98,661
Other assets, net of other liabilities		27,127
Assets acquired		1,314,724
Fair value adjustment to mortgage note payable		(3,693	)
Below market lease value		84,417
Liabilities assumed		80,724
Purchase price allocation	$	1,234,000
Net consideration funded at closing	$	259,228

521 Fifth Avenue

Property Acquisitions

Schedule of allocation of the purchase price of the assets acquired and liabilities assumed

Land	$	110,100
Building		146,686
Above market lease value		3,318
Acquired in-place leases		23,016
Assets acquired		283,120
Below market lease value		25,977
Liabilities assumed		25,977
Purchase price allocation	$	257,143
Net consideration funded at closing	$	70,000

100 Church Street

Property Acquisitions

Schedule of allocation of the purchase price of the assets acquired and liabilities assumed

Land	$	32,494
Building		86,806
Acquired above-market leases		118
Acquired in-place leases		17,380
Restricted cash		53,735
Assets acquired		190,533
Mortgage note payable		139,672
Acquired below-market leases		8,025
Other liabilities, net of other assets		1,674
Liabilities assumed		149,371
Net assets acquired	$	41,162

125 Park Avenue

Property Acquisitions

Schedule of allocation of the purchase price of the assets acquired and liabilities assumed

Land	$	120,900
Building		201,726
Acquired above-market leases		11,282
Acquired in-place leases		28,828
Assets acquired		362,736
Mortgage note payable at fair value		158,397
Acquired below-market leases		20,589
Liabilities assumed		178,986
Net assets acquired	$	183,750

Gramercy Capital Corp.

Property Acquisitions

Schedule of allocation of the purchase price of the assets acquired and liabilities assumed

Land	$	501,021
Above market lease value		23,178
Acquired in-place leases		217,312
Assets acquired		741,511
Mortgage notes payable		540,805
Other liabilities, net of other assets		2,091
Liabilities assumed		542,896
		198,615
Investments in unconsolidated joint ventures		(111,751	)
Net assets acquired	$	86,864

Williamsburg, Brooklyn

Property Acquisitions

Schedule of allocation of the purchase price of the assets acquired and liabilities assumed

Land	$	6,200
Building		10,158
Acquired above market and in-place leases		2,304
Assets acquired		18,662
Below market lease value		277
Liabilities assumed		277
Purchase price allocation	$	18,385

XML

Supplemental Disclosure of Non-Cash Investing and Financing Activities (Tables)

12 Months Ended

Dec. 31, 2011

Supplemental Disclosure of Non-Cash Investing and Financing Activities

Summary of non-cash investing and financing activities

	Years ended December 31,
	2011		2010
Issuance of common stock as deferred compensation	$	699	$	537
Issuance of units in the operating partnership		62,443
Redemption of units in the operating partnership		865		12,091
Derivative instruments at fair value		1,870		15,299
Assignment of debt investment to joint venture		286,571		—
Mortgage assigned to joint venture		30,000		—
Tenant improvements and capital expenditures payable		3,990		1,981
Debt and preferred equity and other investments acquired		—		30,000
Other non-cash adjustments-investing		—		302,187
Fair value adjustment to noncontrolling interest in operating partnership		39,040		18,948
Accrued acquisition liabilities		34,500		—
Assumption of mortgage loans		943,767		803,921
Consolidation of real estate investments and other adjustments		1,156,929		—
Consolidation of real estate investments—noncontrolling interest in other partnerships		87,264		—
Deconsolidation of real estate investments—assets		—		60,783
Deconsolidation of real estate investments—liabilities		—		47,533

XML

Investment in Unconsolidated Joint Ventures (Details) (USD $)	3 Months Ended							12 Months Ended												1 Months Ended	12 Months Ended		12 Months Ended		1 Months Ended	12 Months Ended		1 Months Ended		12 Months Ended		1 Months Ended	12 Months Ended			1 Months Ended	12 Months Ended		12 Months Ended		12 Months Ended	1 Months Ended				1 Months Ended
	Dec. 31, 2011	Sep. 30, 2011	Jun. 30, 2011	Dec. 31, 2010	Sep. 30, 2010	Jun. 30, 2010	Mar. 31, 2010	Dec. 31, 2011 entity sqft	Dec. 31, 2010	Dec. 31, 2009	Dec. 31, 2011 100 Park Avenue sqft	Dec. 31, 2011 379 West Broadway sqft	Dec. 31, 2011 21 West 34th Street sqft	Dec. 31, 2011 800 Third Avenue sqft	Dec. 31, 2011 One Court Square sqft	Dec. 31, 2011 1604-1610 Broadway sqft	Dec. 31, 2011 1745 Broadway sqft	Dec. 31, 2011 1 and 2 Jericho Plaza sqft	Dec. 31, 2011 16 Court Street sqft	Sep. 30, 2009 The Meadows	Dec. 31, 2010 The Meadows sqft	Dec. 31, 2011 The Meadows	Dec. 31, 2011 388 and 390 Greenwich Street sqft y	Dec. 31, 2011 27-29 West 34th Street sqft	Aug. 31, 2011 1551-1555 Broadway	Dec. 31, 2011 717 Fifth Avenue sqft	Dec. 31, 2011 141 Fifth Avenue sqft	Aug. 31, 2011 180/182 Broadway and 63 Nassu Street	Dec. 31, 2010 180/182 Broadway and 63 Nassu Street floor	Dec. 31, 2011 180/182 Broadway and 63 Nassu Street sqft floor	Dec. 31, 2011 600 Lexington Avenue sqft	Dec. 31, 2010 11 West 34th Street	Dec. 31, 2011 11 West 34th Street sqft	Dec. 31, 2011 7 Renaissance sqft	Dec. 31, 2011 3 Columbus Circle sqft	Mar. 31, 2011 280 Park Avenue	Dec. 31, 2011 280 Park Avenue sqft	May 31, 2011 280 Park Avenue	Dec. 31, 2011 1552-1560 Broadway sqft	Dec. 31, 2011 747 Madison Avenue	Dec. 31, 2011 1552 Broadway sqft	Apr. 30, 2009 55 Corporate Drive, NJ (pad IV)	Jun. 30, 2009 1166 Avenue of the Americas	Nov. 30, 2011 450 West 33rd Street	Dec. 31, 2011 450 West 33rd Street	May 31, 2010 Green Hill Acquisition LLC 1221 Avenue of the Americas	Apr. 30, 2009 Mack-Green joint venture
General information on each joint venture
Number of VIEs in which the entity is not primary beneficiary								2
Net equity investment in VIEs in which the entity is not primary beneficiary																													$ 12,000,000						$ 161,900,000
Beneficial interest sold (as a percent)																									10.00%																	50.00%				45.00%
Consideration received for sale of beneficial interest																									9,700,000																		5,000,000			577,400,000
Proceeds from sale of interest in joint venture																																															500,000
Consideration towards existing reserve payment and assumption of pro-rata share of in-place financing																																														95,900,000
Proceeds from sale of beneficial interest in property																																														500,900,000
Recognized gain (loss) on sale of interest in property	(114,000)	3,032,000		1,633,000	520,000	126,769,000		2,918,000	128,921,000	6,691,000															4,000,000																	4,000,000	(5,200,000)			126,800,000
Employee compensation award																									2,500,000																					4,500,000
Ownership Interest (as a percent)											49.90%	45.00%	50.00%	42.95%	30.00%	45.00%	32.26%	20.26%	35.00%			50.00%	50.60%	50.00%		32.75%	50.00%			25.50%	55.00%		30.00%	50.00%	48.90%		50.00%		50.00%	33.33%					100.00%
Economic Interest (as a percent)											49.90%	45.00%	50.00%	42.95%	30.00%	63.00%	32.26%	20.26%	35.00%			50.00%	50.60%	50.00%		32.75%	50.00%			25.50%	55.00%		30.00%	50.00%	48.90%		50.00%		50.00%	33.33%
Square Feet								31,426,318			834,000	62,000	30,000	526,000	1,402,000	30,000	674,000	640,000	318,000		582,000		2,600,000	41,000		120,000	22,000			71,000	304,000		17,000	37,000	769,000		1,237,000		49,000		13,045
Acquisition Price											95,800,000	19,750,000	22,400,000	285,000,000	533,500,000	4,400,000	520,000,000	210,000,000	107,500,000			111,500,000	1,575,000,000	30,000,000		251,900,000	13,250,000			43,600,000	193,000,000		10,800,000	4,000,000	500,000,000		400,000,000		136,550,000	66,250,000
Remaining percentage of interest acquired in joint venture																				50.00%																								50.00%
Triple-net lease arrangement (in years)																							13
Adjustment to retained earnings due to deconsolidation of joint ventures																														3,000,000
Adjustment to noncontrolling interests in other partnerships due to deconsolidation of joint ventures																														9,500,000
Number of floors of student housing																													20
Contribution made by Harel																													28,100,000
Partnership interest sold to Harel by joint venture (as a percent)																													49.00%
Sales price															475,000,000													2,800,000
Repayment of debt								765,378,000	149,832,000	169,688,000																						12,000,000
Impairment charge in connection with expected sale															5,800,000						2,800,000
Additional income recognized on repayment of debt		(67,000)	971,000		(511,000)	(1,276,000)	(113,000)	904,000	(1,900,000)	86,006,000																						1,100,000
Operating partnership units issued (in shares)																																			306,296
Committed additional contribution																																			47,500,000
Committed additional capital contribution funded																																			34,500,000
Bridge loan made																																			125,000,000
Interest rate on bridge loan made (as a percent)																																			7.50%
Debt investments contributed to joint venture								286,571,000																												286,600,000
Additional income upon the contribution of debt investment to joint venture								120,418,000	147,926,000	65,608,000																										38,700,000
Amount received from joint venture								160,548,000	623,121,000	27,946,000																										111,300,000						4,500,000
Floating rate financing assumed by joint venture								30,000,000																												30,000,000
Valuation of investment under the recapitalization transaction																																						$ 1,100,000,000
Effective ownership interest in underlying investment (as a percent)																																				49.50%

XML

Property Acquisitions (Details) (USD $)	12 Months Ended		1 Months Ended									12 Months Ended	1 Months Ended	12 Months Ended			1 Months Ended					12 Months Ended
	Dec. 31, 2011 sqft property	Dec. 31, 2010	Nov. 30, 2011 51 East 42nd Street sqft	May 31, 2011 51 East 42nd Street	Nov. 30, 2011 180 Maiden Lane sqft y	May 31, 2011 110 East 42nd Street sqft	Apr. 30, 2011 1515 Broadway sqft	Jan. 31, 2010 1515 Broadway	Apr. 30, 2011 521 Fifth Avenue y	Jan. 31, 2011 521 Fifth Avenue sqft	Jan. 31, 2010 521 Fifth Avenue	Dec. 31, 2011 521 Fifth Avenue	Jan. 31, 2010 100 Church Street y sqft	Dec. 31, 2007 100 Church Street loan	Aug. 31, 2010 125 Park Avenue	Dec. 31, 2010 Gramercy Capital Corp.	Dec. 31, 2010 885 Third Avenue	Dec. 31, 2010 2 Herald Square	Dec. 31, 2010 292 Madison Avenue	Dec. 31, 2010 Williamsburg, Brooklyn property	Dec. 30, 2010 Williamsburg, Brooklyn	Dec. 31, 2009 420 Lexington Avenue
Property Acquisitions
Area of property (in square feet)	31,426,318		142,000		1,100,000	205,000	1,750,000			460,000			1,050,000
Stated interest rate of Series H preferred partnership units issued				6.00%
Preferred operating partnership units issued			$ 2,000,000		$ 31,700,000
Stake in the joint venture (as a percent)					49.90%
Consideration in cash					41,000,000	2,744,000	259,228,000			70,000,000
Refinanced mortgage loan					344,200,000	16,000,000			150,000,000				139,700,000
Term of refinanced mortgage (in years)					5				2
Mortgage on properties assumed					280,000,000									40,900,000
Senior mezzanine loan					344,200,000	16,000,000			150,000,000				139,700,000
Mortgage on properties assumed							458,800,000			140,000,000					146,250,000		120,400,000	86,100,000	59,100,000
Purchase price fair value adjustment recognized					8,300,000		475,100,000			13,800,000
Interest rate (as a percent)															5.748%
Remaining ownership interest acquired (as a percent)								45.00%		49.90%	49.90%						45.00%	45.00%
Number of loans acquired														2
Consolidated interest in acquiree										245,700,000
Interest in acquired loan (as a percent)														50.00%
Interest rate added to base rate (as a percent)									2.00%			2.00%	3.50%
Interest rate, description									30-day LIBOR			30-day LIBOR	30-day LIBOR
Fee interest in the property acquired									15,000,000
Allocation of the purchase price of the assets acquired and liabilities assumed
Land						34,000,000	462,700,000			110,100,000			32,494,000		120,900,000	501,021,000				6,200,000
Building						46,411,000	707,938,000			146,686,000			86,806,000		201,726,000					10,158,000
Above market lease value						823,000	18,298,000			3,318,000			118,000		11,282,000	23,178,000
Acquired above market and in-place leases						5,396,000	98,661,000			23,016,000			17,380,000		28,828,000	217,312,000				2,304,000
Restricted cash													53,735,000
Other assets, net of other liabilities							27,127,000
Assets acquired						86,630,000	1,314,724,000			283,120,000			190,533,000		362,736,000	741,511,000				18,662,000
Fair value adjustment to mortgage note payable							(3,693,000)						139,672,000		158,397,000	540,805,000
Below market lease value						2,326,000	84,417,000			25,977,000			8,025,000		20,589,000					277,000
Other liabilities, net of other assets													1,674,000			2,091,000
Liabilities assumed						2,326,000	80,724,000			25,977,000			149,371,000		178,986,000	542,896,000				277,000
Purchase price allocation			80,000,000			84,304,000	1,230,000,000			257,143,000			15,000,000		183,750,000	86,864,000				18,385,000	18,400,000
Net consideration funded at closing					41,000,000	2,744,000	259,228,000			70,000,000
Debt assumed						65,000,000
Net assets acquired, including previous investments in unconsolidated joint ventures							1,234,000,000						41,162,000		330,000,000	198,615,000
Purchase price of property, excluding mortgage debt assumed																	39,300,000	25,600,000	19,200,000
Investment in unconsolidated joint ventures																(111,751,000)
Sub-leasehold positions acquired																						15,900,000
Number of properties	64																			2
Term of renewal option (in years)													1
Cash and other assets acquired										4,500,000
Remaining ownership interest acquired. (as a percent)								45.00%		49.90%	49.90%						45.00%	45.00%
Pro Forma
Actual revenues since acquisition	106,900,000
Actual net income since acquisition	21,500,000
Pro forma revenues	1,292,100,000	1,210,000,000
Pro forma operating income	$ 129,000,000	$ 135,400,000
Pro forma earnings per common share-basic (in dollars per share)	$ 7.41	$ 3.66
Pro forma earnings per common share and common share equivalents-diluted	$ 7.37	$ 3.65
Pro forma common shares-basic	83,762	78,101
Pro forma common share and common share equivalents-diluted	86,244	79,761

XML

Noncontrolling Interests in Operating Partnership (Tables)

12 Months Ended

Dec. 31, 2011

Noncontrolling Interests in Operating Partnership

Schedule of activity relating to the noncontrolling interests in the operating partnership

	Year Ended December 31, 2011			Year Ended December 31, 2010
Balance at beginning of period	$	84,338		$	84,618
Distributions		(1,264	)		(511	)
Issuance of units		60,443			2,874
Redemption of units		(865	)		(25,104	)
Net income		14,629			4,574
Accumulated other comprehensive income (loss) allocation		(291	)		(1,061	)
Fair value adjustment		38,040			18,948
Balance at end of period	$	195,030		$	84,338

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Consolidated Statements of Cash Flows (Parenthetical) (USD $)	3 Months Ended			12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
Consolidated Statements of Cash Flows
Quarterly distributions declared, per share (in dollars per share)	$ 0.25	$ 0.10	$ 0.10	$ 0.55	$ 0.40	$ 0.675

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Property Dispositions and Assets Held for Sale (Details) (USD $)	3 Months Ended								12 Months Ended			1 Months Ended
	Dec. 31, 2011	Sep. 30, 2011	Jun. 30, 2011	Mar. 31, 2011	Dec. 31, 2010	Sep. 30, 2010	Jun. 30, 2010	Mar. 31, 2010	Dec. 31, 2011 sqft	Dec. 31, 2010	Dec. 31, 2009	May 31, 2011 Property at 28 West 44th Street sqft	Oct. 31, 2011 292 Madison Avenue	Sep. 30, 2010 Property at 19 West 44th Street sqft	Jan. 31, 2009 Property at 55 Corporate Drive, New Jersey sqft	Aug. 31, 2009 Property at 399 Knollwood Road, Westchester sqft
Property Dispositions and Assets Held for Sale
Consideration for sale of property												$ 161,000,000		$ 123,200,000	$ 230,000,000	$ 20,700,000
Square footage of property (in square feet)									31,426,318			359,000		292,000	670,000	145,000
Gain on sale of property			46,085,000			35,485,000			46,085,000	35,485,000	(6,841,000)	46,100,000		35,500,000	4,600,000	(11,400,000)
Proceeds generated from sale									(160,548,000)	(623,121,000)	(27,946,000)
Employee compensation award												2,500,000		500,000	2,000,000
Sales price													85,000,000
Ownership percentage sold including the share of co-venturer															100.00%
Interest sold (as a percent)															50.00%
Mortgage by which property sold is encumbered																18,500,000
Revenues
Rental revenue									12,636,000	22,912,000	29,221,000
Escalation and reimbursement revenues									873,000	4,683,000	5,740,000
Other income									60,000	881,000	6,750,000
Total revenues									13,569,000	28,476,000	41,711,000
Operating expense									1,654,000	7,403,000	8,969,000
Real estate taxes									1,033,000	4,776,000	5,668,000
Interest expense, net of interest income									4,253,000	2,998,000	4,716,000
Amortization of deferred financing costs									172,000	883,000	883,000
Depreciation and amortization									676,000	5,326,000	6,858,000
Marketing, general and administrative and transaction related costs									1,000	26,000	7,299,000
Total expenses									7,789,000	21,412,000	34,393,000
Net income from discontinued operations	$ 1,116,000	$ 1,116,000	$ 1,675,000	$ 1,873,000	$ 533,000	$ 2,211,000	$ 2,403,000	$ 1,917,000	$ 5,780,000	$ 7,064,000	$ 7,318,000

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Corporate Indebtedness (Tables)

12 Months Ended

Dec. 31, 2011

Corporate Indebtedness

Schedule of senior unsecured notes and other related disclosures by scheduled maturity date

Issuance	December 31, 2011 Unpaid Principal Balance		December 31, 2011 Accreted Balance		December 31, 2010 Accreted Balance		Coupon Rate(4)			Effective Rate			Term (in Years)		Maturity
January 22, 2004(1)(5)(7)	$	—	$	—	$	84,823		5.15	%		5.900	%		7		January 15, 2011
August 13, 2004(1)(5)		98,578		98,578		98,578		5.875	%		6.100	%		10		August 15, 2014
March 31, 2006(1)		275,000		274,804		274,764		6.00	%		6.200	%		10		March 31, 2016
March 16, 2010(8)		250,000		250,000		250,000		7.75	%		7.750	%		10		March 15, 2020
June 27, 2005(1)(2)(5)		657		657		657		4.00	%		4.000	%		20		June 15, 2025
March 26, 2007(3)(5)		120,157		119,423		123,171		3.00	%		5.460	%		20		March 30, 2027
October 12, 2010(6)		345,000		277,629		268,552		3.00	%		7.125	%		7		October 15, 2017
August 5, 2011(8)		250,000		249,565		—		5.00	%		5.000	%		7		August 15, 2018
	$	1,339,392	$	1,270,656	$	1,100,545

⁽¹⁾

Issued by ROP.

⁽²⁾

Exchangeable senior debentures which are currently callable at 100% of par. In addition, the debentures can be put to us, at the option of the holder at par plus accrued and unpaid interest, on June 15, 2015 and 2020 and upon the occurrence of certain change of control transactions. As a result of the acquisition of all outstanding shares of common stock of Reckson Associates Realty Corp., or the Reckson Merger, the adjusted exchange rate for the debentures is 7.7461 shares of our common stock per $1,000 of principal amount of debentures and the adjusted reference dividend for the debentures is $1.3491. During the year ended December 31, 2010, we repurchased approximately $115.4 million of these debentures, inclusive of debentures purchased in the tender offer discussed in Note (5) below, and realized a net loss on early extinguishment of debt of approximately $0.3 million. On the date of the Reckson Merger, $13.1 million was recorded in equity and was fully amortized as of June 30, 2010.

⁽³⁾

In March 2007, the Operating Partnership issued $750.0 million of these exchangeable notes. Interest on these notes is payable semi-annually on March 30 and September 30. The notes have an initial exchange rate representing an exchange price that was set at a 25.0% premium to the last reported sale price of our common stock on March 20, 2007, or $173.30. The initial exchange rate is subject to adjustment under certain circumstances. The notes are senior unsecured obligations of our Operating Partnership and are exchangeable upon the occurrence of specified events, and during the period beginning on the twenty-second scheduled trading day prior to the maturity date and ending on the second business day prior to the maturity date, into cash or a combination of cash and shares of our common stock, if any, at our option. The notes are redeemable, at our option, on and after April 15, 2012. We may be required to repurchase the notes on March 30, 2012, 2017 and 2022, and upon the occurrence of certain designated events. The net proceeds from the offering were approximately $736.0 million, after deducting estimated fees and expenses. The proceeds of the offering were used to repay certain of our existing indebtedness, make investments in additional properties, and make open market purchases of our common stock and for general corporate purposes. During the year ended December 31, 2010, we repurchased approximately $41.7 million of these bonds, inclusive of notes purchased in the tender offer discussed in Note (5) below, and realized a net loss on early extinguishment of debt of approximately $0.5 million. On the issuance date, $66.6 million was recorded in equity. As of December 31, 2011, approximately $0.7 million remained unamortized.

⁽⁴⁾

Interest on the senior unsecured notes is payable semi-annually with principal and unpaid interest due on the scheduled maturity dates.

⁽⁵⁾

In April 2010, we completed a cash tender offer and purchased $13.0 million of the outstanding 3.000% Exchangeable Senior Notes due 2027 issued by the Operating Partnership, and $13.2 million of the outstanding 4.000% Exchangeable Senior Debentures due 2025, $38.8 million of the 5.150% Notes due 2011 and $50.0 million of the 5.875% Notes due 2014 issued by Reckson.

⁽⁶⁾

In October 2010, the Operating Partnership issued $345.0 million of these exchangeable notes. Interest on these notes is payable semi-annually on April 15 and October 15. The notes have an initial exchange rate representing an exchange price that was set at a 30.0% premium to the last reported sale price of our common stock on October 6, 2010, or $85.81. The initial exchange rate is subject to adjustment under certain circumstances. The notes are senior unsecured obligations of our Operating Partnership and are exchangeable upon the occurrence of specified events, and during the period beginning on the twenty-second scheduled trading day prior to the maturity date and ending on the second business day prior to the maturity date, into cash or a combination of cash and shares of our common stock, if any, at our option. The notes are guaranteed by ROP. The net proceeds from the offering were approximately $336.5 million, after deducting fees and expenses. The proceeds of the offering were used to repay certain of our existing indebtedness, make investments in additional properties, and for general corporate purposes. On the issuance date, $78.3 million was recorded in equity. As of December 31, 2011, approximately $67.4 million remained unamortized.

⁽⁷⁾

In January 2011, the remaining outstanding $84.8 million of ROP's 5.15% unsecured notes were repaid at par on their maturity date.

⁽⁸⁾

Issued by us, the Operating Partnership and ROP, as co-obligors.

Schedule of combined aggregate principal maturities

	Scheduled Amortization		Principal Repayments		Revolving Credit Facility		Trust Preferred Securities		Senior Unsecured Notes		Total		Joint Venture Debt
2012	$	52,443	$	—	$	—	$	—	$	119,423	$	171,866	$	176,457
2013		52,470		516,179		—		—		—		568,649		93,683
2014		50,322		597,454		—		—		98,578		746,354		123,983
2015		40,845		229,537		—		—		657		271,039		102,476
2016		39,426		516,974		350,000		—		274,804		1,181,204		527,814
Thereafter		158,551		2,119,639		—		100,000		777,194		3,155,384		800,102
	$	394,057	$	3,979,783	$	350,000	$	100,000	$	1,270,656	$	6,094,496	$	1,824,515

Schedule of interest expense, excluding capitalized interest

	Years Ended December 31,
	2011			2010			2009
Interest expense	$	287,921		$	232,794		$	236,961
Interest income		(2,004	)		(2,146	)		(4,306	)
Interest expense, net	$	285,917		$	230,648		$	232,655
Interest capitalized	$	5,123		$	—		$	98

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Supplemental Disclosure of Non-Cash Investing and Financing Activities

12 Months Ended

Dec. 31, 2011

Supplemental Disclosure of Non-Cash Investing and Financing Activities

Supplemental Disclosure of Non-Cash Investing and Financing Activities

20. Supplemental Disclosure of Non-Cash Investing and Financing Activities

        The following table provides information on non-cash investing and financing activities (in thousands):

	Years ended December 31,
	2011		2010
Issuance of common stock as deferred compensation	$	699	$	537
Issuance of units in the operating partnership		62,443
Redemption of units in the operating partnership		865		12,091
Derivative instruments at fair value		1,870		15,299
Assignment of debt investment to joint venture		286,571		—
Mortgage assigned to joint venture		30,000		—
Tenant improvements and capital expenditures payable		3,990		1,981
Debt and preferred equity and other investments acquired		—		30,000
Other non-cash adjustments-investing		—		302,187
Fair value adjustment to noncontrolling interest in operating partnership		39,040		18,948
Accrued acquisition liabilities		34,500		—
Assumption of mortgage loans		943,767		803,921
Consolidation of real estate investments and other adjustments		1,156,929		—
Consolidation of real estate investments—noncontrolling interest in other partnerships		87,264		—
Deconsolidation of real estate investments—assets		—		60,783
Deconsolidation of real estate investments—liabilities		—		47,533

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Segment Information

12 Months Ended

Dec. 31, 2011

Segment Information

Segment Information

19. Segment Information

        We are a REIT engaged in owning, managing, leasing, acquiring and repositioning commercial office and retail properties in the New York Metropolitan area and have two reportable segments, real estate and debt and preferred equity investments. We evaluate real estate performance and allocate resources based on earnings contribution to income from continuing operations.

        Our real estate portfolio is primarily located in the geographical markets of the New York Metropolitan area. The primary sources of revenue are generated from tenant rents and escalations and reimbursement revenue. Real estate property operating expenses consist primarily of security, maintenance, utility costs, real estate taxes and ground rent expense (at certain applicable properties). See Note 5 for additional details on our debt and preferred equity investments.

        Selected results of operations for the years ended December 31, 2011, 2010 and 2009, and selected asset information as of December 31, 2011 and 2010, regarding our operating segments are as follows (in thousands):

	Real Estate Segment		Debt and Preferred Equity Segment			Total Company
Total revenues
Year ended:
December 31, 2011	$	1,143,010	$	120,418		$	1,263,428
December 31, 2010		936,460		147,926			1,084,386
December 31, 2009		912,753		65,608			978,361
Income from continuing operations before equity in net gain on sale of unconsolidated joint venture/ partial interest and purchase price fair value adjustments:
Year ended:
December 31, 2011	$	22,890	$	101,254		$	124,144
December 31, 2010		27,101		120,585			147,686
December 31, 2009		154,156		(89,659	)		64,497
Total assets
As of:
December 31, 2011	$	12,490,502	$	993,350		$	13,483,852
December 31, 2010		10,330,043		970,251			11,300,294

        Income from continuing operations represents total revenues less total expenses for the real estate segment and total investment income less allocated interest expense for the debt and preferred equity segment. Interest costs for the debt and preferred equity segment are imputed assuming 100% leverage at our 2011 revolving credit facility borrowing cost. We also allocate loan loss reserves to the debt and preferred equity segment. We do not allocate marketing, general and administrative expenses and transaction related costs (approximately $85.7 million, $87.8 million and $74.0 million for the years ended December 31, 2011, 2010 and 2009, respectively) to the debt and preferred equity segment since we base performance on the individual segments prior to allocating marketing, general and administrative expenses. All other expenses, except interest, relate entirely to the real estate assets.

        There were no transactions between the above two segments.

        The table below reconciles income from continuing operations to net income attributable to SL Green common stockholders for the years ended December 31, 2011, 2010 and 2009 (in thousands):

	Years ended December 31,
	2011			2010			2009
Income from continuing operations before equity in net gain on sale of unconsolidated joint venture/ partial interest and purchase price fair value adjustments	$	124,144		$	147,686		$	64,497
Equity in net gain on sale of interest in unconsolidated joint venture/ real estate		2,918			128,921			6,691
Purchase price fair value adjustment		498,195			—			—
Income from continuing operations		625,257			276,607			71,188
Net income from discontinued operations		5,780			7,064			7,318
Gain (loss) on sale of discontinued operations		46,085			35,485			(6,841	)
Net income		677,122			319,156			71,665
Net income attributable to noncontrolling interests in operating partnership		(14,629	)		(4,574	)		(1,221	)
Net income attributable to noncontrolling interests in other partnerships		(15,083	)		(14,007	)		(12,900	)
Net income attributable to SL Green		647,410			300,575			57,544
Preferred stock dividends		(30,178	)		(29,749	)		(19,875	)
Net income attributable to SL Green common stockholders	$	617,232		$	270,826		$	37,669

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Significant Accounting Policies (Details) (USD $)	12 Months Ended
	Dec. 31, 2011 investments y	Dec. 31, 2010 investments	Dec. 31, 2009
Investment in Commercial Real Estate Properties
Depreciation expense (including amortization of the capital lease asset)	$ 254,500,000	$ 207,100,000	$ 205,500,000
Impairment charges recorded	5,800,000	2,800,000
Impairment charges recorded, number of investments	1	1
Period from cessation of major construction to consider construction project as complete and available for occupancy, maximum (in years)	1
Increase in rental revenue from amortization of acquired leases	19,800,000	22,700,000	24,200,000
Reduction in interest expense from amortization of above-market rate mortgages	5,900,000	2,700,000	2,700,000
Identified intangible assets (included in other assets):
Gross amount	673,495,000	758,300,000
Accumulated amortization	(193,442,000)	(133,737,000)
Net	480,053,000	624,563,000
Identified intangible liabilities (included in deferred revenue):
Gross amount	622,029,000	508,339,000
Accumulated amortization	(290,893,000)	(220,417,000)
Net	331,136,000	287,922,000
Building (fee ownership)
Investment in Commercial Real Estate Properties
Estimated useful life (in years)	40
Building (leasehold interest)
Investment in Commercial Real Estate Properties
Estimated useful life, high end of range (in years)	40
Furniture and fixtures
Investment in Commercial Real Estate Properties
Estimated useful life, low end of range (in years)	4
Estimated useful life, high end of range (in years)	7
Other intangible assets
Investment in Commercial Real Estate Properties
Estimated useful life of other intangible assets, low end of range (in years)	1
Estimated useful life of other intangible assets, high end of range (in years)	14
Above-market leases
Investment in Commercial Real Estate Properties
Estimated useful life of other intangible assets, low end of range (in years)	1
Estimated useful life of other intangible assets, high end of range (in years)	14
Below-market leases
Investment in Commercial Real Estate Properties
Estimated useful life of other intangible assets, low end of range (in years)	1
Estimated useful life of other intangible assets, high end of range (in years)	14
In-place leases
Investment in Commercial Real Estate Properties
Estimated useful life of other intangible assets, low end of range (in years)	1
Estimated useful life of other intangible assets, high end of range (in years)	14
Acquired below-market leases, net of acquired above-market leases
Estimated annual amortization
2012	10,767,000
2013	9,787,000
2014	7,869,000
2015	6,404,000
2016	5,664,000
All other identifiable assets
Estimated annual amortization
2012	11,818,000
2013	10,229,000
2014	7,507,000
2015	5,821,000
2016	$ 4,204,000

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Rental Income (Tables)

12 Months Ended

Dec. 31, 2011

Rental Income

Schedule of approximate future minimum rents to be received over the next five years and thereafter

	Consolidated Properties		Unconsolidated Properties
2012	$	955,920	$	199,659
2013		919,388		196,868
2014		843,069		189,078
2015		755,334		184,372
2016		673,792		179,526
Thereafter		3,159,160		829,419
	$	7,306,663	$	1,778,922

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Quarterly Financial Data (unaudited)

12 Months Ended

Dec. 31, 2011

Quarterly Financial Data (unaudited)

Quarterly Financial Data (unaudited)

21. Quarterly Financial Data (unaudited)

        We are providing updated summary selected quarterly financial information, which is reflective of the reclassification of the properties sold during 2011 as discontinued operations. Quarterly data for the last two years is presented in the tables below (in thousands).

2011 Quarter Ended	December 31			September 30			June 30			March 31
Total revenues	$	328,877		$	306,624		$	298,705		$	329,222
Income net of noncontrolling interests and before gains on sale		1,833			9,544			10,176			72,898
Equity in net gain (loss) on sale of interest in unconsolidated joint venture/ real estate		(114	)		3,032			—			—
Purchase price fair value adjustment		8,306			999			475,102			13,788
Loss on early extinguishment of debt		—			(67	)		971			—
Gain (loss) on investment in marketable securities		4,999			—			(6	)		(127	)
Depreciable real estate reserves		(5,789	)		—			—			—
Net income from discontinued operations		1,116			1,116			1,675			1,873
Gain on sale of discontinued operations		—			—			46,085			—
Net income attributable to SL Green		10,351			14,624			534,003			88,432
Preferred stock dividends		(7,543	)		(7,545	)		(7,545	)		(7,545	)
Net income attributable to SL Green common stockholders	$	2,808		$	7,079		$	526,458		$	80,887
Net income per common share—Basic	$	0.03		$	0.08		$	6.30		$	1.02
Net income per common share—Diluted	$	0.03		$	0.08		$	6.26		$	1.01

2010 Quarter Ended	December 31			September 30			June 30			March 31
Total revenues	$	262,785		$	319,149		$	251,684		$	250,768
Income (loss) net of noncontrolling interests and before gains on sale		14,563			81,340			16,687			20,674
Equity in net gain on sale of interest in unconsolidated joint venture/ real estate		1,633			520			126,769			—
Gain on early extinguishment of debt		—			(511	)		(1,276	)		(113	)
Gain (loss) on equity investment in marketable securities		775			—			—			(285	)
Depreciable real estate reserves		(2,750	)		—			—			—
Net income from discontinued operations		533			2,211			2,403			1,917
Gain on sale of discontinued operations		—			35,485			—			—
Net income attributable to SL Green		14,754			119,045			144,583			22,193
Preferred stock dividends		(7,545	)		(7,545	)		(7,545	)		(7,114	)
Net income attributable to SL Green common stockholders	$	7,209		$	111,500		$	137,038		$	15,079
Net income per common share—Basic	$	0.09		$	1.43		$	1.76		$	0.19
Net income per common share—Diluted	$	0.09		$	1.42		$	1.75		$	0.19

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Subsequent Events

12 Months Ended

Dec. 31, 2011

Subsequent Events

Subsequent Events

22. Subsequent Events

        In October 2011, SL Green formed a joint venture with Stonehenge Partners and in January 2012 acquired five retail and two multifamily properties in Manhattan for $193.1 million. The residential component, which encompasses 488,000 square feet (unaudited), was financed with an aggregate 7-year $100.0 million fixed rate mortgage which bears interest at 4.125%. One of the retail properties was financed with a 5-year $8.5 million mortgage.

        In January 2012, SL Green formed a joint venture with Jeff Sutton and acquired 724 Fifth Avenue for $223.0 million. This 65,010 square foot (unaudited) property was financed with a 5-year $120.0 million floating rate mortgage which bears interest at 235 basis points over the 30-day LIBOR.

        In October 2011, we, along with our joint venture partner, Jeff Sutton, announced an agreement to sell two retail condominium units at 141 Fifth Avenue for $46 million. This transaction closed in February 2012.

        In December 2011, we entered into an agreement to acquire the 390,000 square foot (unaudited) office building located at 10 East 53^rd Street acquisition through a joint venture for $252.5 million. This transaction closed in February 2012.

        As of February 22, 2012, we sold approximately 661,500 shares of our common stock through the at-the-money program for aggregate gross proceeds of $50.7 million ($49.9 million of net proceeds after related expenses).

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Consolidated Statements of Cash Flows (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
Operating Activities
Net income	$ 677,122	$ 319,156	$ 71,665
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	292,311	240,445	235,200
Equity in net income from unconsolidated joint ventures	(1,583)	(39,607)	(62,878)
Distributions of cumulative earnings from unconsolidated joint ventures	11,185	27,472	40,677
Equity in net gain on sale of interest in unconsolidated joint venture interest/ real estate	(2,918)	(128,921)	(6,691)
Purchase price fair value adjustment	(498,195)
Depreciable real estate reserves	5,789	2,750
(Gain) loss on sale of discontinued operations	(46,085)	(35,485)	6,841
Gain on sale of debt securities	(19,840)
Loan loss and other investment reserves, net of recoveries	6,722	17,751	150,510
(Gain) loss on investments in marketable securities	(4,866)	(490)	396
(Gain) loss on early extinguishment of debt	(904)	1,900	(86,006)
Deferred rents receivable	(87,230)	(47,223)	(26,267)
Other non-cash adjustments	2,385	(749)	(2,534)
Changes in operating assets and liabilities:
Restricted cash - operations	(681)	4,513	16,219
Tenant and other receivables	(4,720)	271	11,026
Related party receivables	2,461	2,398	(894)
Deferred lease costs	(38,412)	(42,035)	(21,202)
Other assets	4,029	4,860	(28,863)
Accounts payable, accrued expenses and other liabilities	10,704	(3,706)	(14,761)
Deferred revenue and land leases payable	5,586	(2,242)	(7,227)
Net cash provided by operating activities	312,860	321,058	275,211
Investing Activities
Acquisitions of real estate property	(446,756)	(270,614)	(16,059)
Additions to land, buildings and improvements	(159,100)	(108,145)	(90,971)
Escrowed cash - capital improvements/acquisition deposits	29,281	(40,215)	(5,318)
Investments in unconsolidated joint ventures	(109,920)	(87,844)	(107,716)
Distributions in excess of cumulative earnings from unconsolidated joint ventures	112,359	52,920	38,846
Net proceeds from disposition of real estate/joint venture interest	160,548	623,121	27,946
Other investments	12,186	32,607	(47,719)
Debt and preferred equity and other investments, net of repayments/participations	(338,195)	(183,015)	(144,388)
Net cash (used in) provided by investing activities	(739,597)	18,815	(345,379)
Financing Activities
Proceeds from mortgages and other loans payable	826,000	168,360	192,399
Repayments of mortgages and other loans payable	(765,378)	(149,832)	(169,688)
Proceeds from revolving credit facility and senior unsecured notes	1,901,068	670,992	30,433
Repayments of revolving credit facility and senior unsecured notes	(2,043,144)	(1,046,626)	(646,317)
Proceeds from stock options exercised and DRIP issuance	10,211	14,535	619
Net proceeds from sale of common stock	516,168		387,138
Net proceeds from sale of preferred stock		122,041
Purchases of treasury stock	(5,486)
Distributions to noncontrolling interests in other partnerships	(143,578)	(13,489)	(19,617)
Contributions from noncontrolling interests in other partnerships		2,788
Redemption of noncontrolling interests in operating partnership		(13,012)
Distributions to noncontrolling interests in operating partnership	(727)	(511)	(2,170)
Dividends paid on common and preferred stock	(63,866)	(58,984)	(78,321)
Other obligations related to mortgage loan participations	35,850
Deferred loan costs and capitalized lease obligation	(35,019)	(47,020)	(7,482)
Net cash provided by (used in) financing activities	232,099	(350,758)	(313,006)
Net decrease in cash and cash equivalents	(194,638)	(10,885)	(383,174)
Cash and cash equivalents at beginning of period	332,830	343,715	726,889
Cash and cash equivalents at end of period	138,192	332,830	343,715
Supplemental cash flow disclosures
Interest paid	275,106	222,904	257,393
Income taxes paid	$ 138	$ 1,041	$ 818

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Schedule II-Valuation and Qualifying Accounts

12 Months Ended

Dec. 31, 2011

Schedule II-Valuation and Qualifying Accounts

Schedule II-Valuation and Qualifying Accounts

Schedule II—Valuation and Qualifying Accounts
December 31, 2011
(Dollars in thousands)

Column A	Column B		Column C		Column D			Column E
Description	Balance at Beginning of Year		Additions Charged Against Operations		Uncollectible Accounts Written-off			Balance at End of Year
Year Ended December 31, 2011
Tenant and other receivables—allowance	$	12,981		4,537		(746	)	$	16,772
Deferred rent receivable—allowance	$	30,834		6,638		(8,316	)	$	29,156
Year Ended December 31, 2010
Tenant receivables—allowance	$	14,271		2,165		(3,455	)	$	12,981
Deferred rent receivable—allowance	$	24,347		3,138		3,349		$	30,834
Year Ended December 31, 2009
Tenant receivables—allowance	$	16,898		1,006		(3,633	)	$	14,271
Deferred rent receivable—allowance	$	19,648		6,467		(1,768	)	$	24,347

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Benefit Plans (Details) (USD $)	12 Months Ended							1 Months Ended	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009	Dec. 31, 2000	Dec. 31, 2011 Pension Plan	Dec. 31, 2010 Pension Plan	Dec. 31, 2009 Pension Plan	Jan. 31, 2009 Health Plan	Dec. 31, 2011 Health Plan	Dec. 31, 2010 Health Plan	Dec. 31, 2009 Health Plan	Dec. 31, 2011 Pension Plan	Dec. 31, 2010 Pension Plan	Dec. 31, 2009 Pension Plan	Dec. 31, 2011 Health Plan	Dec. 31, 2010 Health Plan	Dec. 31, 2009 Health Plan	Dec. 31, 2011 Other plans	Dec. 31, 2010 Other plans	Dec. 31, 2009 Other plans
Multi-employer plans
Plan contributions	$ 14,294,000	$ 11,732,000	$ 10,661,000		$ 201,300,000	$ 193,300,000	$ 177,700,000		$ 843,200,000	$ 770,800,000	$ 705,500,000	$ 2,264,000	$ 1,835,000	$ 1,704,000	$ 6,919,000	$ 5,754,000	$ 5,319,000	$ 5,111,000	$ 4,143,000	$ 3,638,000
Employer contributions per quarter								1,950,000
401 (K) Plan
Employee contribution limit per calendar year (as a percent of compensation)	15.00%
Employer match of employee contributions of first specified percentage of annual compensation	50.00%	50.00%	50.00%	50.00%
Percentage of eligible compensation matched by employer	6.00%	6.00%	6.00%	4.00%
Matching contribution	$ 502,000	$ 450,000	$ 450,000

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Investment in Unconsolidated Joint Ventures (Tables)

12 Months Ended

Dec. 31, 2011

Investment in Unconsolidated Joint Ventures

Schedule of general information on joint ventures

Property	Partner	Ownership Interest			Economic Interest			Square Feet		Acquired		Acquisition Price(1)
100 Park Avenue	Prudential		49.90	%		49.90	%		834		02/00	$	95,800
379 West Broadway	Sutton		45.00	%		45.00	%		62		12/05	$	19,750
21 West 34th Street	Sutton		50.00	%		50.00	%		30		07/05	$	22,400
800 Third Avenue	Private Investors		42.95	%		42.95	%		526		12/06	$	285,000
One Court Square(10)	JP Morgan		30.00	%		30.00	%		1,402		01/07	$	533,500
1604-1610 Broadway	Onyx/Sutton		45.00	%		63.00	%		30		11/05	$	4,400
1745 Broadway	Witkoff/SITQ/Lehman Bros.		32.26	%		32.26	%		674		04/07	$	520,000
1 and 2 Jericho Plaza	Onyx/Credit Suisse		20.26	%		20.26	%		640		04/07	$	210,000
16 Court Street	CIF		35.00	%		35.00	%		318		07/07	$	107,500
The Meadows(2)	Onyx		50.00	%		50.00	%		582		09/07	$	111,500
388 and 390 Greenwich Street(3)	SITQ		50.60	%		50.60	%		2,600		12/07	$	1,575,000
27-29 West 34th Street	Sutton		50.00	%		50.00	%		41		01/06	$	30,000
717 Fifth Avenue	Sutton/Nakash		32.75	%		32.75	%		120		09/06	$	251,900
141 Fifth Avenue(4)	Sutton/Rapport		50.00	%		50.00	%		22		09/05	$	13,250
180/182 Broadway(4)(5)	Harel/Sutton		25.50	%		25.50	%		71		02/08	$	43,600
600 Lexington Avenue	CPPIB		55.00	%		55.00	%		304		05/10	$	193,000
11 West 34th Street(6)	Private Investor/Sutton		30.00	%		30.00	%		17		12/10	$	10,800
7 Renaissance	Cappelli		50.00	%		50.00	%		37		12/10	$	4,000
3 Columbus Circle(7)	Moinian		48.90	%		48.90	%		769		01/11	$	500,000
280 Park Avenue(8)	Vornado		50.00	%		50.00	%		1,237		03/11	$	400,000
1552-1560 Broadway(9)	Sutton		50.00	%		50.00	%		49		08/11	$	136,550
747 Madison Avenue	Harel/Sutton		33.33	%		33.33	%		10		09/11	$	66,250

⁽¹⁾

Represents the actual or implied purchase price for the joint venture.

⁽²⁾

We, along with Onyx, acquired the remaining 50% interest on a pro-rata basis in September 2009. We recorded a $2.8 million impairment charge in 2010, included in depreciable real estate reserves, against this joint venture investment.

⁽³⁾

The property is subject to a 13-year triple-net lease arrangement with a single tenant. The lease commenced in 2007.

⁽⁴⁾

The deconsolidation of these joint ventures in 2010 resulted in an adjustment to retained earnings of approximately $3.0 million and to the noncontrolling interests in other partnerships of approximately $9.5 million.

⁽⁵⁾

In December 2010, the Company's 180-182 Broadway joint venture with Jeff Sutton announced an agreement with Pace University to convey a long-term ground lease condominium interest to Pace University for 20 floors of student housing. The joint venture also admitted Harel, which contributed $28.1 million to the joint venture, for a 49 percent partnership interest. In August 2011, the joint venture sold the property located at 63 Nassau Street for $2.8 million.

⁽⁶⁾

In December 2010, the Company's $12.0 million first mortgage collateralized by 11 West 34^th Street was repaid at par, resulting in the Company's recognition of additional income of approximately $1.1 million. Simultaneous with the repayment, the joint venture was recapitalized with the Company having a 30 percent interest. The property is subject to a long-term net lease arrangement.

⁽⁷⁾

We issued 306,296 operating partnership units in connection with this investment. We have committed to fund an additional $47.5 million to the joint venture, of which $34.5 million has been funded as of December 31, 2011. This liability is recorded in accrued interest payable and other liabilities. In addition, we made a $125.0 million bridge loan to this joint venture which was bearing interest at a rate of 7.5%. This loan was repaid when the joint venture refinanced its debt in April 2011.

⁽⁸⁾

In March 2011, we contributed our debt investment with a carrying value of $286.6 million to a newly formed joint venture in which we hold a 50% interest. We realized $38.7 million of additional income upon the contribution. This income is included in preferred equity and investment income. The joint venture paid us approximately $111.3 million and also assumed $30.0 million of related floating rate financing which matures in June 2016. See Note 5. In May 2011, this joint venture took control of the underlying property as part of a recapitalization transaction which valued the investment at approximately $1.1 billion. We hold an effective 49.5% ownership interest in the joint venture.

⁽⁹⁾

In connection with this acquisition, the joint venture also acquired a long-term leasehold interest in the retail space and certain other spaces at 1560 Broadway, which is adjacent to 1552 Broadway. The purchase price relates only to the purchase of the 1552 Broadway interest which comprises 13,045 square feet.

⁽¹⁰⁾

This property is under contract for sale for $475.0 million. The transaction, which is subject to the assumption of the joint venture's debt, is expected to close during the first quarter of 2012.

Schedule of first mortgage notes payable collateralized by the respective joint venture properties and assignment of leases

Property	Maturity Date		Interest Rate(1)			December 31, 2011		December 31, 2010
100 Park Avenue		09/2014		6.64	%	$	214,625	$	204,946
21 West 34th Street		12/2016		5.76	%		100,000		100,000
800 Third Avenue		08/2017		6.00	%		20,910		20,910
One Court Square		09/2015		4.91	%		315,000		315,000
1604-1610 Broadway(2)		04/2012		5.66	%		27,000		27,000
388 and 390 Greenwich Street(3)		12/2017		5.19	%		1,106,757		1,106,758
1745 Broadway		01/2017		5.68	%		340,000		340,000
141 Fifth Avenue		06/2017		5.70	%		25,000		25,000
1 and 2 Jericho Plaza		05/2017		5.65	%		163,750		163,750
11 West 34th Street		01/2016		4.82	%		17,761		18,000
280 Park Avenue		06/2016		6.57	%		710,000		—
Total fixed rate debt						$	3,040,803	$	2,321,364
1515 Broadway(4)		—		—			—		462,896
The Meadows(5)		09/2012		1.63	%		84,698		87,034
388 and 390 Greenwich Street(3)		12/2017		1.43	%		31,622		31,622
16 Court Street		10/2013		2.75	%		85,728		86,844
27-29 West 34th Street(11)		05/2012		1.90	%		53,900		54,375
1551-1555 Broadway(6)		—		—			—		128,600
521 Fifth Avenue(7)		—		—			—		140,000
717 Fifth Avenue(8)		09/2012		5.25	%		245,000		245,000
379 West Broadway(11)		07/2012		1.94	%		20,991		20,991
600 Lexington Avenue		10/2017		2.38	%		125,000		125,000
180/182 Broadway(9)		12/2013		3.00	%		30,722		8,509
3 Columbus Circle(10)		04/2016		2.47	%		254,896		—
1552 Broadway(12)		08/2013		3.28	%		95,405		—
747 Madison Avenue		10/2014		3.02	%		33,125		—
Other loan payable		06/2016		1.15	%		30,000		—
Total floating rate debt						$	1,091,087	$	1,390,871
Total mortgages and other loan payable						$	4,131,890	$	3,712,235

⁽¹⁾

Rate represents the effective all-in weighted average interest rate for the quarter ended December 31, 2011.

⁽²⁾

This loan went into default in November 2009 due to the non-payment of debt service. The joint venture is in discussions with the special servicer to resolve this default.

⁽³⁾

Comprised of a $576.0 million mortgage and a $562.4 million mezzanine loan, both of which are fixed rate loans, except for $16.0 million of the mortgage and $15.6 million of the mezzanine loan which are floating rate loans. Up to $200.0 million of the mezzanine loan, secured indirectly by these properties, is recourse to us. We believe it is unlikely that we will be required to perform under this guaranty.

⁽⁴⁾

We acquired the remaining interest in this joint venture in April 2011. As a result, we have consolidated this investment since April 2011. See Notes 3 and 8.

⁽⁵⁾

This loan has a committed amount of $91.2 million.

⁽⁶⁾

This loan was refinanced in June 2011. We sold our interest in this joint venture in August 2011.

⁽⁷⁾

We acquired the remaining interest in this joint venture in January 2011. As a result, we have consolidated this investment since January 2011. See Notes 3 and 8.

⁽⁸⁾

This loan has a committed amount of $285.0 million.

⁽⁹⁾

The $31.0 million loan was repaid in December 2010 as part of a recapitalization of the joint venture. The new loan has a committed amount of $90.0 million.

⁽¹⁰⁾

We provided 50% of a bridge loan to this joint venture. In April 2011, our joint venture with The Moinian Group which owns the property located at 3 Columbus Circle, New York, refinanced the bridge loan and replaced it with a $260.0 million 5-year mortgage with the Bank of China, which carries a floating rate of interest of 210 basis points over the 30-day LIBOR, at which point SL Green and Deutsche Bank's bridge loan was repaid. The joint venture has the ability to increase the mortgage by $40.0 million based on meeting certain performance hurdles. In connection with this obligation, SLG has executed a master lease agreement. SLG's partner has executed a contribution agreement to reflect its pro rata obligation under the master lease.

⁽¹¹⁾

In May 2011, this loan was extended by 1-year.

⁽¹²⁾

This loan has a committed amount of $125.0 million.

Schedule of combined balance sheets for the unconsolidated joint ventures

	2011		2010
Assets
Commercial real estate property, net	$	5,699,113	$	4,831,897
Other assets		599,596		516,049
Total assets	$	6,298,709	$	5,347,946
Liabilities and members' equity
Mortgages and other loans payable	$	4,131,890	$	3,712,235
Other liabilities		250,925		233,463
Members' equity		1,915,894		1,402,248
Total liabilities and members' equity	$	6,298,709	$	5,347,946
Company's net investment in unconsolidated joint ventures	$	893,933	$	631,570

Schedule of combined statements of income for the unconsolidated joint ventures

	2011			2010		2009
Total revenues	$	480,935		$	593,159	$	689,087
Operating expenses		75,513			94,515		120,215
Real estate taxes		51,511			66,588		84,827
Transaction related costs		2,665			1,105		—
Interest		223,400			224,766		208,295
Depreciation and amortization		137,070			141,284		156,470
Total expenses		490,159			528,258		569,807
Net (loss) income before gain on sale	$	(9,224	)	$	64,901	$	119,280
Company's equity in net income of unconsolidated joint ventures	$	1,583		$	39,607	$	62,878

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Quarterly Financial Data (unaudited) (Tables)

12 Months Ended

Dec. 31, 2011

Quarterly Financial Data (unaudited)

Schedule of quarterly data

2011 Quarter Ended	December 31			September 30			June 30			March 31
Total revenues	$	328,877		$	306,624		$	298,705		$	329,222
Income net of noncontrolling interests and before gains on sale		1,833			9,544			10,176			72,898
Equity in net gain (loss) on sale of interest in unconsolidated joint venture/ real estate		(114	)		3,032			—			—
Purchase price fair value adjustment		8,306			999			475,102			13,788
Loss on early extinguishment of debt		—			(67	)		971			—
Gain (loss) on investment in marketable securities		4,999			—			(6	)		(127	)
Depreciable real estate reserves		(5,789	)		—			—			—
Net income from discontinued operations		1,116			1,116			1,675			1,873
Gain on sale of discontinued operations		—			—			46,085			—
Net income attributable to SL Green		10,351			14,624			534,003			88,432
Preferred stock dividends		(7,543	)		(7,545	)		(7,545	)		(7,545	)
Net income attributable to SL Green common stockholders	$	2,808		$	7,079		$	526,458		$	80,887
Net income per common share—Basic	$	0.03		$	0.08		$	6.30		$	1.02
Net income per common share—Diluted	$	0.03		$	0.08		$	6.26		$	1.01

2010 Quarter Ended	December 31			September 30			June 30			March 31
Total revenues	$	262,785		$	319,149		$	251,684		$	250,768
Income (loss) net of noncontrolling interests and before gains on sale		14,563			81,340			16,687			20,674
Equity in net gain on sale of interest in unconsolidated joint venture/ real estate		1,633			520			126,769			—
Gain on early extinguishment of debt		—			(511	)		(1,276	)		(113	)
Gain (loss) on equity investment in marketable securities		775			—			—			(285	)
Depreciable real estate reserves		(2,750	)		—			—			—
Net income from discontinued operations		533			2,211			2,403			1,917
Gain on sale of discontinued operations		—			35,485			—			—
Net income attributable to SL Green		14,754			119,045			144,583			22,193
Preferred stock dividends		(7,545	)		(7,545	)		(7,545	)		(7,114	)
Net income attributable to SL Green common stockholders	$	7,209		$	111,500		$	137,038		$	15,079
Net income per common share—Basic	$	0.09		$	1.43		$	1.76		$	0.19
Net income per common share—Diluted	$	0.09		$	1.42		$	1.75		$	0.19

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Mortgages and Other Loans Payable (Details) (USD $)	1 Months Ended				12 Months Ended					1 Months Ended																	1 Months Ended																							1 Months Ended	12 Months Ended					12 Months Ended
	Nov. 30, 2011	Sep. 30, 2010	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2011 Other loan payable due June 2013	Dec. 31, 2010 Other loan payable due June 2013	Dec. 31, 2010 Other loan payable assigned to joint venture	Dec. 31, 2011 711 Third Avenue	Dec. 31, 2010 711 Third Avenue	Mar. 31, 2011 420 Lexington Avenue	Dec. 31, 2011 420 Lexington Avenue	Dec. 31, 2010 420 Lexington Avenue	Dec. 31, 2011 673 First Avenue	Dec. 31, 2010 673 First Avenue	Dec. 31, 2011 220 East 42nd Street	Dec. 31, 2010 220 East 42nd Street	Dec. 31, 2011 625 Madison Avenue	Dec. 31, 2010 625 Madison Avenue	Dec. 31, 2011 609 Fifth Avenue	Dec. 31, 2010 609 Fifth Avenue	Dec. 31, 2011 609 Partners, LLC	Dec. 31, 2010 609 Partners, LLC	Dec. 31, 2011 485 Lexington Avenue	Dec. 31, 2010 485 Lexington Avenue	Dec. 31, 2011 120 West 45th Street	Dec. 31, 2010 120 West 45th Street	Jun. 30, 2011 919 Third Avenue	Dec. 31, 2011 919 Third Avenue	Dec. 31, 2010 919 Third Avenue	Dec. 31, 2011 300 Main Street	Dec. 31, 2010 300 Main Street	Dec. 31, 2011 500 West Putnam Avenue	Dec. 31, 2010 500 West Putnam Avenue	Dec. 31, 2011 One Madison Avenue	Dec. 31, 2010 One Madison Avenue	Dec. 31, 2011 125 Park Avenue	Dec. 31, 2010 125 Park Avenue	Dec. 31, 2011 2 Herald Square	Dec. 31, 2010 2 Herald Square	Dec. 31, 2011 885 Third Avenue	Dec. 31, 2010 885 Third Avenue	Dec. 31, 2011 292 Madison Avenue	Dec. 31, 2010 292 Madison Avenue	Dec. 31, 2011 110 East 42nd Street	Dec. 31, 2011 Landmark Square	Dec. 31, 2010 Landmark Square	Dec. 31, 2011 Other loan payable due in September, 2019	Dec. 31, 2010 100 Church Street	Dec. 31, 2010 28 West 44th Street	Apr. 30, 2011 521 Fifth Avenue y	Dec. 31, 2011 521 Fifth Avenue	Dec. 31, 2011 1515 Broadway	Jan. 31, 2011 1515 Broadway	Dec. 31, 2011 180 Maiden Lane	Dec. 31, 2011 180 Maiden Lane SL Green Operating Partnership	Dec. 31, 2011 180 Maiden Lane SL Green Operating Partnership Series E preferred units
Mortgages and Other Loans Payable
Interest rate, fixed rate debt (as a percent)								4.99%			7.15%		5.67%		5.24%		7.22%		5.85%		5.00%		5.61%		6.12%		6.87%	5.12%		5.75%		5.52%		5.91%		5.75%		5.36%		6.26%		6.17%		5.81%	4.00%		8.00%
Interest rate, floating rate debt (as a percent)					3.47%																																														2.25%	3.50%		2.56%
Total fixed rate debt																																												$ 18,100,000
Total fixed rate debt			3,431,353,000	2,935,817,000				120,000,000	120,000,000		187,182,000	149,141,000	29,906,000	30,781,000	190,431,000	194,758,000	129,098,000	132,209,000	94,963,000	96,502,000	31,721,000	31,722,000	450,000,000	450,000,000	170,000,000	170,000,000		500,000,000	219,879,000	11,500,000	11,500,000	24,563,000	25,000,000	626,740,000	640,076,000	146,250,000	146,250,000	191,250,000	191,250,000	267,650,000	267,650,000	59,099,000	59,099,000	65,000,000	86,000,000		50,000,000
Other loan payable					62,792,000	62,792,000	30,000,000
Total floating rate debt			942,487,000	464,651,000																																										110,180,000		139,672,000	122,007,000		150,000,000	450,363,000		279,332,000
Total mortgages and other loans payable			4,373,840,000	3,400,468,000
Increase in loan amount										40,000,000
Controlling interest in the joint venture (as a percent)																												51.00%
Interest rate added to base rate (as a percent)					2.50%																																														2.00%
Interest rate, description					three month GBP LIBOR																																													30-day LIBOR	30-Day LIBOR
Refinanced mortgage loan																											500,000,000																							150,000,000
Mortgage on properties assumed																																																					140,000,000
Term (in years)																																																		2
Preferred units, shares issued	80,000																																																						63,900,000
Preferred Units (as a percent)	6.00%																																																							5.00%
Preferred units, liquidation preference (in dollars per share)	$ 25.00																																																						$ 1.00
Preferred units, shares redeemed																																																								32,200,000
Repaid loan		104,000,000																									219,900,000
Gross book value of the properties collateralizing the mortgages and other loans payable			$ 7,400,000,000	$ 5,800,000,000

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Consolidated Balance Sheets (USD $) In Thousands, unless otherwise specified	Dec. 31, 2011	Dec. 31, 2010
Commercial real estate properties, at cost:
Land and land interests	$ 2,684,626	$ 1,750,220
Building and improvements	7,147,527	5,840,701
Building leasehold and improvements	1,302,790	1,286,935
Property under capital lease	12,208	12,208
Total commercial real estate properties, at cost	11,147,151	8,890,064
Less: accumulated depreciation	(1,136,603)	(916,293)
Total commercial real estate properties, net	10,010,548	7,973,771
Assets held for sale	76,562
Cash and cash equivalents	138,192	332,830
Restricted cash	86,584	137,673
Investment in marketable securities	25,323	34,052
Tenant and other receivables, net of allowance of $16,772 and $12,981 in 2011 and 2010, respectively	32,107	27,054
Related party receivables	4,001	6,295
Deferred rents receivable, net of allowance of $29,156 and $30,834 in 2011 and 2010, respectively	281,974	201,317
Debt and preferred equity investments, net of discount of $24,996 and $42,937 and allowance of $50,175 and $61,361 in 2011 and 2010, respectively	985,942	963,772
Investments in unconsolidated joint ventures	893,933	631,570
Deferred costs, net	210,786	172,517
Other assets	737,900	819,443
Total assets	13,483,852	11,300,294
Liabilities
Mortgages and other loans payable	4,314,741	3,400,468
Revolving credit facility	350,000	650,000
Senior unsecured notes	1,270,656	1,100,545
Accrued interest payable and other liabilities	126,135	38,149
Accounts payable and accrued expenses	142,428	133,389
Deferred revenue/gains	357,193	307,678
Capitalized lease obligation	17,112	17,044
Deferred land leases payable	18,495	18,267
Dividend and distributions payable	28,398	14,182
Security deposits	46,367	38,690
Liabilities related to assets held for sale	61,988
Junior subordinate deferrable interest debentures held by trusts that issued trust preferred securities	100,000	100,000
Total liabilities	6,833,513	5,818,412
Commitments and contingencies
Noncontrolling interests in operating partnership	195,030	84,338
SL Green stockholders equity:
Common stock, $0.01 par value, 160,000 shares authorized and 89,210 and 81,675 issued and outstanding at December 31, 2011 and 2010, respectively (including 3,427 and 3,369 shares at December 31, 2011 and 2010 held in Treasury, respectively)	892	817
Additional paid-in-capital	4,236,959	3,660,842
Treasury stock at cost	(308,708)	(303,222)
Accumulated other comprehensive loss	(28,445)	(22,659)
Retained earnings	1,704,506	1,172,963
Total SL Green stockholders' equity	5,975,547	4,879,084
Noncontrolling interests in other partnerships	477,762	518,460
Total equity	6,453,309	5,397,544
Total liabilities and equity	13,483,852	11,300,294
Series C Preferred Stock
SL Green stockholders equity:
Preferred stock	274,022	274,022
Total equity	274,022	274,022
Series D Preferred Stock
SL Green stockholders equity:
Preferred stock	96,321	96,321
Total equity	96,321	96,321
Series H Preferred Units
Liabilities
6.00% Series H Preferred Units, $0.01 par value, $25.00 liquidation preference, 80 issued and outstanding at December 31, 2011	$ 2,000

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Related Party Transactions (Tables)

12 Months Ended

Dec. 31, 2011

Related Party Transactions

Schedule of amounts due from related parties

	2011		2010
Due from joint ventures	$	477	$	1,062
Other		3,524		5,233
Related party receivables	$	4,001	$	6,295

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Consolidated Statements of Equity (USD $) In Thousands, except Share data, unless otherwise specified	Total	Common Stock	Additional Paid-In-Capital	Treasury Stock	Accumulated Other Comprehensive Income (Loss)	Retained Earnings	Noncontrolling Interests	Comprehensive Income	Series C Preferred Stock	Series D Preferred Stock
Balance at Dec. 31, 2008	$ 4,481,960	$ 604	$ 3,079,159	$ (302,705)	$ (54,747)	$ 979,939	$ 531,408		$ 151,981	$ 96,321
Balance (in shares) at Dec. 31, 2008		57,044,000
Comprehensive Income:
Net income	70,444					57,544	12,900	70,444
Net unrealized gain (loss) on derivative instruments	20,359				20,359			20,359
SL Green's share of joint venture net unrealized gain (loss) on derivative instruments	(233)				(233)			(233)
Unrealized Gain (loss) on marketable securities	1,083				1,083			1,083
Preferred dividends	(19,875)					(19,875)
Redemption of units and DRIP proceeds	28,567	7	28,560
Redemption of units and DRIP proceeds (in shares)		653,000
Reallocation of noncontrolling interest in the operating partnership	(23,217)					(23,217)
Deferred compensation plan & stock award, net	583	2	581
Deferred compensation plan & stock award, net (in shares)		246,000
Amortization of deferred compensation plan	30,040		30,040
Proceeds from issuance of common stock	387,138	196	386,942
Proceeds from issuance of common stock (in shares)		19,550,000
Proceeds from stock options exercised	619		619
Proceeds from stock options exercised (in shares)		22,000
Cash distributions to noncontrolling interests	(19,617)						(19,617)
Cash distribution declared ($0.55, $0.40 and $0.675 per common share, none of which represented a return of capital for federal income tax purposes for the year ended December 31, 2011, 2010 and 2009, respectively)	(44,722)					(44,722)
Comprehensive income								91,653
Balance at Dec. 31, 2009	4,913,129	809	3,525,901	(302,705)	(33,538)	949,669	524,691		151,981	96,321
Balance (in shares) at Dec. 31, 2009		77,515,000
Comprehensive Income:
Net income	314,582					300,575	14,007	314,582
Net unrealized gain (loss) on derivative instruments	(3,039)				(3,039)			(3,039)
SL Green's share of joint venture net unrealized gain (loss) on derivative instruments	571				571			571
Unrealized Gain (loss) on marketable securities	13,347				13,347			13,347
Preferred dividends	(29,749)					(29,749)
Redemption of units and DRIP proceeds	23,344	5	23,339
Redemption of units and DRIP proceeds (in shares)		470,000
Reallocation of noncontrolling interest in the operating partnership	(18,948)					(18,948)
Deferred compensation plan & stock award, net	20	2	535	(517)
Deferred compensation plan & stock award, net (in shares)		212,000
Amortization of deferred compensation plan	31,741		31,741
Deconsolidation of real estate investments	(6,521)					3,011	(9,532)
Equity component of convertible notes	76,039		76,039
Net proceeds from preferred stock offering	122,041								122,041
Proceeds from stock options exercised	3,288	1	3,287
Proceeds from stock options exercised (in shares)		110,000
Cash contributions from noncontrolling interests	2,788						2,788
Cash distributions to noncontrolling interests	(13,494)						(13,494)
Cash distribution declared ($0.55, $0.40 and $0.675 per common share, none of which represented a return of capital for federal income tax purposes for the year ended December 31, 2011, 2010 and 2009, respectively)	(31,595)					(31,595)
Comprehensive income								325,461
Balance at Dec. 31, 2010	5,397,544	817	3,660,842	(303,222)	(22,659)	1,172,963	518,460		274,022	96,321
Balance (in shares) at Dec. 31, 2010	78,307,000	78,307,000
Comprehensive Income:
Net income	662,493					647,410	15,083	662,493
Net unrealized gain (loss) on derivative instruments	(3,501)				(3,501)			(3,501)
SL Green's share of joint venture net unrealized gain (loss) on derivative instruments	902				902			902
Unrealized Gain (loss) on marketable securities	(3,187)				(3,187)			(3,187)
Preferred dividends	(30,178)					(30,178)
Redemption of units and DRIP proceeds	898		898
Redemption of units and DRIP proceeds (in shares)		13,000
Reallocation of noncontrolling interest in the operating partnership	(39,040)					(39,040)
Deferred compensation plan & stock award, net	(4,787)	3	696	(5,486)
Deferred compensation plan & stock award, net (in shares)		262,000
Amortization of deferred compensation plan	33,252		33,252
Proceeds from issuance of common stock	531,306	70	531,236
Proceeds from issuance of common stock (in shares)		6,957,000
Proceeds from stock options exercised	10,037	2	10,035
Proceeds from stock options exercised (in shares)		244,000
Consolidation of joint venture interest	87,798						87,798
Cash distributions to noncontrolling interests	(143,579)						(143,579)
Cash distribution declared ($0.55, $0.40 and $0.675 per common share, none of which represented a return of capital for federal income tax purposes for the year ended December 31, 2011, 2010 and 2009, respectively)	(46,649)					(46,649)
Comprehensive income								656,707
Balance at Dec. 31, 2011	$ 6,453,309	$ 892	$ 4,236,959	$ (308,708)	$ (28,445)	$ 1,704,506	$ 477,762		$ 274,022	$ 96,321
Balance (in shares) at Dec. 31, 2011	85,783,000	85,783,000

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Schedule III-Real Estate And Accumulated Depreciation (Details) (USD $)	Dec. 31, 2011
Real Estate And Accumulated Depreciation
Encumbrances	$ 4,229,327,000
Initial Cost
Land	2,452,253,000
Building & Improvements	7,751,040,000
Cost Capitalized Subsequent To Acquisition
Land	232,373,000
Building & Improvements	711,485,000
Gross Amount at Which Carried at Close of Period
Land	2,684,626,000
Building & Improvements	8,462,525,000
Total	11,147,151,000
Accumulated Depreciation	1,136,603,000
673 First Avenue
Real Estate And Accumulated Depreciation
Encumbrances	29,906,000
Initial Cost
Building & Improvements	35,727,000
Cost Capitalized Subsequent To Acquisition
Building & Improvements	10,882,000
Gross Amount at Which Carried at Close of Period
Building & Improvements	46,609,000
Total	46,609,000
Accumulated Depreciation	17,091,000
420 Lexington Avenue
Real Estate And Accumulated Depreciation
Encumbrances	187,182,000
Initial Cost
Building & Improvements	107,832,000
Cost Capitalized Subsequent To Acquisition
Building & Improvements	120,447,000
Gross Amount at Which Carried at Close of Period
Building & Improvements	228,279,000
Total	228,279,000
Accumulated Depreciation	67,823,000
711 Third Avenue
Real Estate And Accumulated Depreciation
Encumbrances	120,000,000
Initial Cost
Land	19,844,000
Building & Improvements	42,499,000
Cost Capitalized Subsequent To Acquisition
Building & Improvements	30,273,000
Gross Amount at Which Carried at Close of Period
Land	19,844,000
Building & Improvements	72,772,000
Total	92,616,000
Accumulated Depreciation	23,228,000
555 W. 57th Street
Initial Cost
Land	18,846,000
Building & Improvements	78,704,000
Cost Capitalized Subsequent To Acquisition
Building & Improvements	35,197,000
Gross Amount at Which Carried at Close of Period
Land	18,846,000
Building & Improvements	113,901,000
Total	132,747,000
Accumulated Depreciation	36,170,000
317 Madison Avenue
Initial Cost
Land	21,205,000
Building & Improvements	85,559,000
Cost Capitalized Subsequent To Acquisition
Building & Improvements	28,227,000
Gross Amount at Which Carried at Close of Period
Land	21,205,000
Building & Improvements	113,786,000
Total	134,991,000
Accumulated Depreciation	41,912,000
220 East 42nd Street
Real Estate And Accumulated Depreciation
Encumbrances	190,431,000
Initial Cost
Land	50,373,000
Building & Improvements	203,727,000
Cost Capitalized Subsequent To Acquisition
Land	635,000
Building & Improvements	35,937,000
Gross Amount at Which Carried at Close of Period
Land	51,008,000
Building & Improvements	239,664,000
Total	290,672,000
Accumulated Depreciation	56,526,000
461 Fifth Avenue
Initial Cost
Building & Improvements	62,695,000
Cost Capitalized Subsequent To Acquisition
Building & Improvements	5,764,000
Gross Amount at Which Carried at Close of Period
Building & Improvements	68,459,000
Total	68,459,000
Accumulated Depreciation	15,211,000
750 Third Avenue
Initial Cost
Land	51,093,000
Building & Improvements	205,972,000
Cost Capitalized Subsequent To Acquisition
Building & Improvements	28,846,000
Gross Amount at Which Carried at Close of Period
Land	51,093,000
Building & Improvements	234,818,000
Total	285,911,000
Accumulated Depreciation	47,037,000
625 Madison Avenue
Real Estate And Accumulated Depreciation
Encumbrances	129,098,000
Initial Cost
Building & Improvements	246,673,000
Cost Capitalized Subsequent To Acquisition
Building & Improvements	23,275,000
Gross Amount at Which Carried at Close of Period
Building & Improvements	269,948,000
Total	269,948,000
Accumulated Depreciation	52,379,000
485 Lexington Avenue
Real Estate And Accumulated Depreciation
Encumbrances	450,000,000
Initial Cost
Land	77,517,000
Building & Improvements	326,825,000
Cost Capitalized Subsequent To Acquisition
Land	765,000
Building & Improvements	80,013,000
Gross Amount at Which Carried at Close of Period
Land	78,282,000
Building & Improvements	406,838,000
Total	485,120,000
Accumulated Depreciation	83,879,000
609 Fifth Avenue
Real Estate And Accumulated Depreciation
Encumbrances	94,963,000
Initial Cost
Land	36,677,000
Building & Improvements	145,954,000
Cost Capitalized Subsequent To Acquisition
Building & Improvements	2,824,000
Gross Amount at Which Carried at Close of Period
Land	36,677,000
Building & Improvements	148,778,000
Total	185,455,000
Accumulated Depreciation	20,577,000
One Madison Avenue
Real Estate And Accumulated Depreciation
Encumbrances	626,740,000
Initial Cost
Land	172,641,000
Building & Improvements	654,394,000
Cost Capitalized Subsequent To Acquisition
Land	905,000
Building & Improvements	11,689,000
Gross Amount at Which Carried at Close of Period
Land	173,546,000
Building & Improvements	666,083,000
Total	839,629,000
Accumulated Depreciation	73,750,000
331 Madison Avenue
Initial Cost
Land	14,763,000
Building & Improvements	65,241,000
Cost Capitalized Subsequent To Acquisition
Land	(2,630,000)
Building & Improvements	(12,127,000)
Gross Amount at Which Carried at Close of Period
Land	12,133,000
Building & Improvements	53,114,000
Total	65,247,000
Accumulated Depreciation	7,117,000
333 West 34th Street
Initial Cost
Land	36,711,000
Building & Improvements	146,880,000
Cost Capitalized Subsequent To Acquisition
Building & Improvements	20,808,000
Gross Amount at Which Carried at Close of Period
Land	36,711,000
Building & Improvements	167,688,000
Total	204,399,000
Accumulated Depreciation	19,038,000
120 West 45th Street
Real Estate And Accumulated Depreciation
Encumbrances	170,000,000
Initial Cost
Land	60,766,000
Building & Improvements	250,922,000
Cost Capitalized Subsequent To Acquisition
Building & Improvements	8,703,000
Gross Amount at Which Carried at Close of Period
Land	60,766,000
Building & Improvements	259,625,000
Total	320,391,000
Accumulated Depreciation	34,951,000
810 Seventh Avenue
Initial Cost
Land	114,077,000
Building & Improvements	476,386,000
Cost Capitalized Subsequent To Acquisition
Building & Improvements	32,510,000
Gross Amount at Which Carried at Close of Period
Land	114,077,000
Building & Improvements	508,896,000
Total	622,973,000
Accumulated Depreciation	68,408,000
919 Third Avenue
Real Estate And Accumulated Depreciation
Encumbrances	500,000,000
Initial Cost
Land	223,529,000
Building & Improvements	1,033,198,000
Cost Capitalized Subsequent To Acquisition
Land	35,410,000
Building & Improvements	6,647,000
Gross Amount at Which Carried at Close of Period
Land	258,939,000
Building & Improvements	1,039,845,000
Total	1,298,784,000
Accumulated Depreciation	132,047,000
Interest in property (as a percent)	51.00%
1185 Avenue of the Americas
Initial Cost
Building & Improvements	728,213,000
Cost Capitalized Subsequent To Acquisition
Building & Improvements	24,707,000
Gross Amount at Which Carried at Close of Period
Building & Improvements	752,920,000
Total	752,920,000
Accumulated Depreciation	106,686,000
180 Maiden Lane
Real Estate And Accumulated Depreciation
Encumbrances	279,332,000
Initial Cost
Land	132,697,000
Building & Improvements	309,627,000
Gross Amount at Which Carried at Close of Period
Land	132,697,000
Building & Improvements	309,627,000
Total	442,324,000
Accumulated Depreciation	1,097,000
Interest in property (as a percent)	49.90%
1350 Avenue of the Americas
Initial Cost
Land	91,038,000
Building & Improvements	380,744,000
Cost Capitalized Subsequent To Acquisition
Building & Improvements	16,870,000
Gross Amount at Which Carried at Close of Period
Land	91,038,000
Building & Improvements	397,614,000
Total	488,652,000
Accumulated Depreciation	53,948,000
100 Church Street
Initial Cost
Land	32,494,000
Building & Improvements	79,996,000
Cost Capitalized Subsequent To Acquisition
Building & Improvements	43,305,000
Gross Amount at Which Carried at Close of Period
Land	32,494,000
Building & Improvements	123,301,000
Total	155,795,000
Accumulated Depreciation	8,323,000
125 Park Avenue
Real Estate And Accumulated Depreciation
Encumbrances	146,250,000
Initial Cost
Land	120,900,000
Building & Improvements	189,714,000
Cost Capitalized Subsequent To Acquisition
Building & Improvements	14,401,000
Gross Amount at Which Carried at Close of Period
Land	120,900,000
Building & Improvements	204,115,000
Total	325,015,000
Accumulated Depreciation	9,547,000
2 Herald Square
Real Estate And Accumulated Depreciation
Encumbrances	191,250,000
Initial Cost
Land	92,655,000
Cost Capitalized Subsequent To Acquisition
Land	100,633,000
Gross Amount at Which Carried at Close of Period
Land	193,288,000
Total	193,288,000
885 Third Avenue
Real Estate And Accumulated Depreciation
Encumbrances	267,650,000
Initial Cost
Land	131,766,000
Cost Capitalized Subsequent To Acquisition
Land	110,771,000
Gross Amount at Which Carried at Close of Period
Land	242,537,000
Total	242,537,000
292 Madison Avenue
Real Estate And Accumulated Depreciation
Encumbrances	59,099,000
Initial Cost
Land	23,803,000
Cost Capitalized Subsequent To Acquisition
Land	(23,803,000)
Williamsburg, Brooklyn
Initial Cost
Land	3,677,000
Building & Improvements	14,708,000
Cost Capitalized Subsequent To Acquisition
Land	2,523,000
Building & Improvements	(4,550,000)
Gross Amount at Which Carried at Close of Period
Land	6,200,000
Building & Improvements	10,158,000
Total	16,358,000
Accumulated Depreciation	299,000
521 Fifth Avenue
Real Estate And Accumulated Depreciation
Encumbrances	150,000,000
Initial Cost
Land	110,100,000
Building & Improvements	146,686,000
Cost Capitalized Subsequent To Acquisition
Building & Improvements	3,742,000
Gross Amount at Which Carried at Close of Period
Land	110,100,000
Building & Improvements	150,428,000
Total	260,528,000
Accumulated Depreciation	7,192,000
Interest in property (as a percent)	49.90%
1515 Broadway
Real Estate And Accumulated Depreciation
Encumbrances	450,363,000
Initial Cost
Land	462,700,000
Building & Improvements	707,938,000
Cost Capitalized Subsequent To Acquisition
Land	1,145,000
Building & Improvements	15,028,000
Gross Amount at Which Carried at Close of Period
Land	463,845,000
Building & Improvements	722,966,000
Total	1,186,811,000
Accumulated Depreciation	15,037,000
110 East 42nd Street
Real Estate And Accumulated Depreciation
Encumbrances	65,000,000
Initial Cost
Land	34,000,000
Building & Improvements	46,411,000
Cost Capitalized Subsequent To Acquisition
Building & Improvements	479,000
Gross Amount at Which Carried at Close of Period
Land	34,000,000
Building & Improvements	46,890,000
Total	80,890,000
Accumulated Depreciation	1,217,000
51 East 42nd Street
Initial Cost
Land	24,465,000
Building & Improvements	57,086,000
Gross Amount at Which Carried at Close of Period
Land	24,465,000
Building & Improvements	57,086,000
Total	81,551,000
Accumulated Depreciation	119,000
1100 King Street - 1-7 International Drive
Initial Cost
Land	49,392,000
Building & Improvements	104,376,000
Cost Capitalized Subsequent To Acquisition
Land	2,473,000
Building & Improvements	6,090,000
Gross Amount at Which Carried at Close of Period
Land	51,865,000
Building & Improvements	110,466,000
Total	162,331,000
Accumulated Depreciation	17,389,000
520 White Plains Road
Initial Cost
Land	6,324,000
Building & Improvements	26,096,000
Cost Capitalized Subsequent To Acquisition
Building & Improvements	2,477,000
Gross Amount at Which Carried at Close of Period
Land	6,324,000
Building & Improvements	28,573,000
Total	34,897,000
Accumulated Depreciation	4,477,000
115-117 Stevens Avenue
Initial Cost
Land	5,933,000
Building & Improvements	23,826,000
Cost Capitalized Subsequent To Acquisition
Building & Improvements	5,058,000
Gross Amount at Which Carried at Close of Period
Land	5,933,000
Building & Improvements	28,884,000
Total	34,817,000
Accumulated Depreciation	4,687,000
100 Summit Lake Drive
Initial Cost
Land	10,526,000
Building & Improvements	43,109,000
Cost Capitalized Subsequent To Acquisition
Building & Improvements	5,292,000
Gross Amount at Which Carried at Close of Period
Land	10,526,000
Building & Improvements	48,401,000
Total	58,927,000
Accumulated Depreciation	6,938,000
200 Summit Lake Drive
Initial Cost
Land	11,183,000
Building & Improvements	47,906,000
Cost Capitalized Subsequent To Acquisition
Building & Improvements	2,241,000
Gross Amount at Which Carried at Close of Period
Land	11,183,000
Building & Improvements	50,147,000
Total	61,330,000
Accumulated Depreciation	7,215,000
500 Summit Lake Drive
Initial Cost
Land	9,777,000
Building & Improvements	39,048,000
Cost Capitalized Subsequent To Acquisition
Building & Improvements	3,834,000
Gross Amount at Which Carried at Close of Period
Land	9,777,000
Building & Improvements	42,882,000
Total	52,659,000
Accumulated Depreciation	5,355,000
140 Grand Street
Initial Cost
Land	6,865,000
Building & Improvements	28,264,000
Cost Capitalized Subsequent To Acquisition
Building & Improvements	2,982,000
Gross Amount at Which Carried at Close of Period
Land	6,865,000
Building & Improvements	31,246,000
Total	38,111,000
Accumulated Depreciation	4,443,000
360 Hamilton Avenue
Initial Cost
Land	29,497,000
Building & Improvements	118,250,000
Cost Capitalized Subsequent To Acquisition
Building & Improvements	10,502,000
Gross Amount at Which Carried at Close of Period
Land	29,497,000
Building & Improvements	128,752,000
Total	158,249,000
Accumulated Depreciation	17,222,000
1-6 Landmark Square
Real Estate And Accumulated Depreciation
Encumbrances	86,000,000
Initial Cost
Land	50,947,000
Building & Improvements	195,167,000
Cost Capitalized Subsequent To Acquisition
Building & Improvements	14,643,000
Gross Amount at Which Carried at Close of Period
Land	50,947,000
Building & Improvements	209,810,000
Total	260,757,000
Accumulated Depreciation	27,925,000
7 Landmark Square
Initial Cost
Land	2,088,000
Building & Improvements	7,748,000
Cost Capitalized Subsequent To Acquisition
Land	(367,000)
Building & Improvements	(155,000)
Gross Amount at Which Carried at Close of Period
Land	1,721,000
Building & Improvements	7,593,000
Total	9,314,000
Accumulated Depreciation	16,000
300 Main Street
Real Estate And Accumulated Depreciation
Encumbrances	11,500,000
Initial Cost
Land	3,025,000
Building & Improvements	12,889,000
Cost Capitalized Subsequent To Acquisition
Building & Improvements	1,164,000
Gross Amount at Which Carried at Close of Period
Land	3,025,000
Building & Improvements	14,053,000
Total	17,078,000
Accumulated Depreciation	2,012,000
680 Washington Boulevard
Initial Cost
Land	11,696,000
Building & Improvements	45,364,000
Cost Capitalized Subsequent To Acquisition
Building & Improvements	3,900,000
Gross Amount at Which Carried at Close of Period
Land	11,696,000
Building & Improvements	49,264,000
Total	60,960,000
Accumulated Depreciation	6,594,000
750 Washington Boulevard
Initial Cost
Land	16,916,000
Building & Improvements	68,849,000
Cost Capitalized Subsequent To Acquisition
Building & Improvements	3,800,000
Gross Amount at Which Carried at Close of Period
Land	16,916,000
Building & Improvements	72,649,000
Total	89,565,000
Accumulated Depreciation	9,892,000
1010 Washington Boulevard
Initial Cost
Land	7,747,000
Building & Improvements	30,423,000
Cost Capitalized Subsequent To Acquisition
Building & Improvements	3,203,000
Gross Amount at Which Carried at Close of Period
Land	7,747,000
Building & Improvements	33,626,000
Total	41,373,000
Accumulated Depreciation	4,466,000
1055 Washington Boulevard
Initial Cost
Land	13,516,000
Building & Improvements	53,228,000
Cost Capitalized Subsequent To Acquisition
Building & Improvements	1,675,000
Gross Amount at Which Carried at Close of Period
Land	13,516,000
Building & Improvements	54,903,000
Total	68,419,000
Accumulated Depreciation	7,419,000
500 West Putnam Avenue
Real Estate And Accumulated Depreciation
Encumbrances	24,563,000
Initial Cost
Land	11,210,000
Building & Improvements	44,782,000
Cost Capitalized Subsequent To Acquisition
Building & Improvements	3,503,000
Gross Amount at Which Carried at Close of Period
Land	11,210,000
Building & Improvements	48,285,000
Total	59,495,000
Accumulated Depreciation	6,104,000
150 Grand Street
Initial Cost
Land	1,371,000
Building & Improvements	5,446,000
Cost Capitalized Subsequent To Acquisition
Building & Improvements	9,278,000
Gross Amount at Which Carried at Close of Period
Land	1,371,000
Building & Improvements	14,724,000
Total	16,095,000
Accumulated Depreciation	37,000
400 Summit Lake Drive
Initial Cost
Land	38,889,000
Cost Capitalized Subsequent To Acquisition
Land	285,000
Gross Amount at Which Carried at Close of Period
Land	39,174,000
Total	39,174,000
125 Chubb Way
Initial Cost
Land	5,884,000
Building & Improvements	25,958,000
Cost Capitalized Subsequent To Acquisition
Building & Improvements	16,244,000
Gross Amount at Which Carried at Close of Period
Land	5,884,000
Building & Improvements	42,202,000
Total	48,086,000
Accumulated Depreciation	315,000
Other
Initial Cost
Land	1,130,000
Cost Capitalized Subsequent To Acquisition
Land	3,628,000
Building & Improvements	31,857,000
Gross Amount at Which Carried at Close of Period
Land	4,758,000
Building & Improvements	31,857,000
Total	36,615,000
Accumulated Depreciation	$ 3,488,000

XML

Significant Accounting Policies (Details 4) (USD $)	12 Months Ended
	Dec. 31, 2011 day	Dec. 31, 2010	Dec. 31, 2009
Significant Accounting Policies
Days past due for income recognition on debt and preferred equity investments to be suspended (in days)	90
Reserve for Possible Credit Losses
Loan loss reserves and charge offs	$ 6,722,000	$ 17,751,000	$ 150,510,000
Recoveries recorded	4,370,000	3,662,000
Income taxes
Minimum annual taxable income distributed to stockholders to maintain REIT qualification (as a percent)	90.00%
Federal, state and local tax (benefit)/expense		900,000	1,000,000
Estimated tax payments	138,000	1,041,000	818,000
Debt and Preferred Equity Investments Held to Maturity
Reserve for Possible Credit Losses
Loan loss reserves and charge offs	10,900,000	19,800,000	38,400,000
Debt and Preferred Equity Investments Held for Sale
Reserve for Possible Credit Losses
Loan loss reserves and charge offs		$ 1,000,000	$ 69,100,000

XML

Organization and Basis of Presentation (Tables)

12 Months Ended

Dec. 31, 2011

Organization and Basis of Presentation

Schedule of commercial office properties

Location	Ownership	Number of Properties		Square Feet		Weighted Average Occupancy(1)
Manhattan	Consolidated properties		26		18,429,945		92.8	%
	Unconsolidated properties		7		6,191,673		91.6	%
Suburban	Consolidated properties		25		3,863,000		80.5	%
	Unconsolidated properties		6		2,941,700		93.8	%
			64		31,426,318		91.2	%

⁽¹⁾

The weighted average occupancy represents the total leased square feet divided by total available rentable square feet.

XML

Debt and Preferred Equity Investments (Details 3) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
Loan loss reserve activity
Balance at beginning of year	$ 61,361	$ 93,844	$ 98,916
Expensed	10,875	24,418	145,855
Recoveries	(4,370)	(3,662)
Charge-offs	(17,691)	(53,239)	(150,927)
Balance at end of period	$ 50,175	$ 61,361	$ 93,844

XML

Equity

12 Months Ended

Dec. 31, 2011

Equity

Equity

13. Equity

Common Stock

        Our authorized capital stock consists of 260,000,000 shares, $0.01 par value, of which we have authorized the issuance of up to 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 December 31, 2011, 85,782,723 shares of common stock and no shares of excess stock were issued and outstanding.

        In 2011, we, along with the Operating Partnership, entered into "at-the-market" equity offering programs, or ATM programs, to sell an aggregate of $775.0 million of our common stock. As of December 31, 2011, we had sold 6.7 million shares of our common stock through the ATM programs for aggregate gross proceeds of approximately $525.0 million ($517.1 million of net proceeds after related expenses). The net proceeds were used to repay debt, fund new investments and for other corporate purposes. As of December 31, 2011, we had $250.0 million available to issue under the ATM programs.

Perpetual Preferred Stock

        We have 11,700,000 shares of our 7.625% Series C cumulative redeemable preferred stock, or the Series C preferred stock, outstanding with a mandatory liquidation preference of $25.00 per share. The Series C preferred stockholders receive annual dividends of $1.90625 per share paid on a quarterly basis and dividends are cumulative, subject to certain provisions. Since December 12, 2008, we have been entitled to redeem the Series C preferred stock at par for cash at our option. The Series C preferred stock was recorded net of underwriters discount and issuance costs.

        We also have 4,000,000 shares of our 7.875% Series D cumulative redeemable preferred stock, or the Series D preferred stock, outstanding with a mandatory liquidation preference of $25.00 per share. The Series D preferred stockholders receive annual dividends of $1.96875 per share paid on a quarterly basis and dividends are cumulative, subject to certain provisions. Since May 27, 2009, we have been entitled to redeem the Series D preferred stock at par for cash at our option. The Series D preferred stock was recorded net of underwriters discount and issuance costs.

Rights Plan

        In February 2000, our board of directors authorized a distribution of one preferred share purchase right, or Right, for each outstanding share of common stock under a shareholder rights plan. This distribution was made to all holders of record of the common stock on March 31, 2000. Each Right entitled the registered holder to purchase from us one one-hundredth of a share of Series B junior participating preferred stock, par value $0.01 per share, or Preferred Shares, at a price of $60.00 per one one-hundredth of a Preferred Share, or Purchase Price, subject to adjustment as provided in the rights agreement. The Rights expired on March 5, 2010 and the rights plan was terminated.

Dividend Reinvestment and Stock Purchase Plan

        We filed a registration statement with the SEC for our dividend reinvestment and stock purchase plan, or DRIP, automatically became effective upon filing. We registered 2,000,000 shares of our common stock under the DRIP. The DRIP commenced on September 24, 2001.

        During the years ended December 31, 2011 and 2010, approximately 473 and 250,900 shares of our common stock were issued and approximately $34,000 and $11.3 million of proceeds were received, respectively, from dividend reinvestments and/or stock purchases under the DRIP. DRIP shares may be issued at a discount to the market price.

Second Amended and Restated 2005 Stock Option and Incentive Plan

        We have a stock option and incentive plan. The second amended and restated 2005 Stock Option and Incentive Plan, or the 2005 Plan, was approved by our board of directors in April 2010 and our stockholders in June 2010 at our annual meeting of stockholders. The 2005 Plan authorizes the issuance of stock options, stock appreciation rights, unrestricted and restricted stock, phantom shares, dividend equivalent rights and other equity-based awards. Subject to adjustments upon certain corporate transactions or events, awards with respect to up to a maximum of 10,730,000 fungible units may be granted under the 2005 Plan. Currently, different types of awards count against the limit on the number of fungible units differently, with (1) full-value awards (i.e., those that deliver the full value of the award upon vesting, such as restricted stock) counting as 1.65 fungible units per share subject to such award (2) stock options, stock appreciation rights and other awards that do not deliver full value and expire five year from the date of grant counting as 0.79 fungible units per share subject to such award and (3) all other awards (e.g., ten-year stock options) counting as 1.0 fungible units per share subject to such award. Awards granted under the 2005 Plan prior to the approval of the second amendment and restatement in June 2010 continue to count against the fungible unit limit based on the ratios that were in effect at the time such awards were granted, which may be different than the current ratios. As a result, depending on the types of awards issued, the 2005 Plan may result in the issuance of more or less than 10,730,000 shares. If a stock option or other award granted under the 2005 Plan expires or terminates, the common stock subject to any portion of the award that expires or terminates without having been exercised or paid, as the case may be, will again become available for the issuance of additional awards. Shares of our common stock distributed under the 2005 Plan may be treasury shares or authorized but unissued shares. Currently, unless the 2005 Plan has been previously terminated by the Board, new awards may be granted under the 2005 Plan until June 15, 2020, which is the tenth anniversary of the date that the 2005 Plan was most recently approved by our stockholders. At December 31, 2011, approximately 3.8 million fungible units were available for issuance under the 2005 Plan, or 4.8 million if all fungible units available under the 2005 Plan were issued as five-year stock options.

        Options are granted under the plan at the fair market value on the date of grant and, subject to termination of employment, generally expire ten years from the date of grant, are not transferable other than on death, and generally vest in one to five years commencing one year from the date of grant.

        The fair value of each stock option granted is estimated on the date of grant using the Black-Scholes option pricing model based on historical information with the following weighted average assumptions for grants in 2011, 2010 and 2009.

	2011			2010			2009
Dividend yield		2.00	%		2.00	%		2.15	%
Expected life of option		4.2 years			5.1 years			5 years
Risk-free interest rate		1.00	%		2.09	%		2.17	%
Expected stock price volatility		47.98	%		50.07	%		53.08	%

        A summary of the status of our stock options as of December 31, 2011, 2010 and 2009 and changes during the years then ended are presented below:

	2011					2010					2009
	Options Outstanding			Weighted Average Exercise Price		Options Outstanding			Weighted Average Exercise Price		Options Outstanding			Weighted Average Exercise Price
Balance at beginning of year		1,353,002		$	58.85		1,324,221		$	56.74		937,706		$	61.33
Granted		212,400			66.42		180,250			62.00		443,850			46.08
Exercised		(243,901	)		40.48		(109,636	)		31.49		(22,000	)		28.17
Lapsed or cancelled		(44,301	)		65.89		(41,833	)		77.33		(35,335	)		62.75
Balance at end of year		1,277,200		$	63.37		1,353,002		$	58.85		1,324,221		$	56.74
Options exercisable at end of year		644,429		$	72.31		631,224		$	69.42		595,851		$	62.17
Weighted average fair value of options granted during the year	$	4,647,554				$	4,333,281				$	8,276,500

        All options were granted within a price range of $20.67 to $137.18. The remaining weighted average contractual life of the options outstanding and exercisable was 4.0 years and 4.0 years, respectively.

        During the years ended December 31, 2011, 2010, and 2009, we recognized $4.7 million, $4.4 million and $2.8 million of compensation expense, respectively, for these options. As of December 31, 2011 there was approximately $8.4 million of total unrecognized compensation cost related to unvested stock options, which is expected to be recognized over a weighted-average period of three years.

Stock-based Compensation

        Effective January 1, 1999, we implemented a deferred compensation plan, or the Deferred Plan, covering certain of our employees, including our executives. The shares issued under the Deferred Plan were granted to certain employees, including our executives and vesting will occur annually upon the completion of a service period or our meeting established financial performance criteria. Annual vesting occurs at rates ranging from 15% to 35% once performance criteria are reached. A summary of our restricted stock as of December 31, 2011, 2010 and 2009 and charges during the years then ended are presented below:

	2011			2010			2009
Balance at beginning of year		2,728,290			2,330,532			1,824,190
Granted		185,333			400,925			506,342
Cancelled		(1,167	)		(3,167	)		—
Balance at end of year		2,912,456			2,728,290			2,330,532
Vested during the year		66,299			153,644			420,050
Compensation expense recorded	$	17,365,401		$	15,327,206		$	23,301,744
Weighted average fair value of restricted stock granted during the year	$	21,768,084		$	28,269,983		$	4,979,218

        The fair value of restricted stock that vested during the years ended December 31, 2011, 2010 and 2009 was $4.3 million, $16.6 million and $28.0 million, respectively. As of December 31, 2011, there was $14.7 million of total unrecognized compensation cost related to unvested restricted stock, which is expected to be recognized over a weighted-average period of two years.

        For the years ended December 31, 2011, 2010 and 2009, approximately $3.4 million, $2.2 million and $1.7 million, respectively, was capitalized to assets associated with compensation expense related to our long-term compensation plans, restricted stock and stock options.

        We granted LTIP units which had a fair value of $8.5 million as part of the 2011 performance stock bonus award. The grant date fair value of the LTIP unit awards was calculated in accordance with ASC 718. A third party consultant determined the fair value of the LTIP units to have a discount from our unrestricted common stock price. The discount was calculated by considering the inherent uncertainty that the LTIP units will reach parity with other common partnership units and the illiquidity due to transfer restrictions.

2003 Long-Term Outperformance Compensation Program

        Our board of directors adopted a long-term, seven-year compensation program for certain members of senior management. The program provided for restricted stock awards to be made to plan participants if the holders of our common equity achieved a total return in excess of 40% over a 48-month period commencing April 1, 2003. In April 2007, the compensation committee determined that under the terms of the 2003 Outperformance Plan, as of March 31, 2007, the performance hurdles had been met and the maximum performance pool of $22,825,000, taking into account forfeitures, was established. In connection with this event, approximately 166,312 shares of restricted stock (as adjusted for forfeitures) were allocated under the 2005 Plan. In accordance with the terms of the program, 40% of each award vested on March 31, 2007 and the remainder vested ratably over the subsequent three years based on continued employment. The fair value of the awards under this program on the date of grant was determined to be $3.2 million. This fair value is expensed over the term of the restricted stock award. Forty percent of the value of the award was amortized over four years from the date of grant and the balance was amortized, in equal parts, over five, six and seven years (i.e., 20% of the total value was amortized over five years (20% per year), 20% of the total value was amortized over six years (16.67% per year) and 20% of the total value was amortized over seven years (14.29% per year). We recorded compensation expense of $23,000 and $0.1 million related to this plan during the years ended December 31, 2010 and 2009, respectively. The cost of the 2003 Outperformance Plan had been fully expensed as of March 31, 2010.

2005 Long-Term Outperformance Compensation Program

        In December 2005, the compensation committee of our board of directors approved a long-term incentive compensation program, the 2005 Outperformance Plan. Participants in the 2005 Outperformance Plan were entitled to earn LTIP Units in our Operating Partnership if our total return to stockholders for the three-year period beginning December 1, 2005 exceeded a cumulative total return to stockholders of 30%; provided that participants were entitled to earn LTIP Units earlier in the event that we achieved maximum performance for 30 consecutive days. The total number of LTIP Units that could be earned was to be a number having an assumed value equal to 10% of the outperformance amount in excess of the 30% benchmark, subject to a maximum dilution cap equal to the lesser of 3% of our outstanding shares and units of limited partnership interest as of December 1, 2005 or $50.0 million. On June 14, 2006, the compensation committee determined that under the terms of the 2005 Outperformance Plan, as of June 8, 2006, the performance period had accelerated and the maximum performance pool of $49,250,000, taking into account forfeitures, had been earned. Under the terms of the 2005 Outperformance Plan, participants also earned additional LTIP Units with a value equal to the distributions that would have been paid with respect to the LTIP Units earned if such LTIP Units had been earned at the beginning of the performance period. The total number of LTIP Units earned under the 2005 Outperformance Plan by all participants as of June 8, 2006 was 490,475. Under the terms of the 2005 Outperformance Plan, all LTIP Units that were earned remained subject to time-based vesting, with one-third of the LTIP Units earned vested on each of November 30, 2008 and the first two anniversaries thereafter based on continued employment. The earned LTIP Units received regular quarterly distributions on a per unit basis equal to the dividends per share paid on our common stock, whether or not they were vested.

        The cost of the 2005 Outperformance Plan (approximately $8.0 million, subject to adjustment for forfeitures) was amortized into earnings through the final vesting period. We recorded approximately $1.6 million and $2.3 million of compensation expense during the years ended December 31, 2010 and 2009, respectively, in connection with the 2005 Outperformance Plan. The cost of the 2005 Outperformance Plan had been fully expensed as of June 30, 2010.

2006 Long-Term Outperformance Compensation Program

        On August 14, 2006, the compensation committee of our board of directors approved a long-term incentive compensation program, the 2006 Outperformance Plan. The performance criteria under the 2006 Outperformance Plan were not met and, accordingly, no LTIP Units were earned under the 2006 Outperformance Plan.

        The cost of the 2006 Outperformance Plan (approximately $16.4 million, subject to adjustment for forfeitures) was amortized into earnings through July 31, 2011. We recorded approximately $70,000, $0.2 million and $0.4 million of compensation expense during the years ended December 31, 2011, 2010 and 2009, respectively, in connection with the 2006 Outperformance Plan. The performance criteria under the 2006 Outperformance Plan were not met and, accordingly, no LTIP Units were earned under the 2006 Outperformance Plan. The cost of the 2006 Outperformance Plan had been fully expensed as of September 30, 2011.

SL Green Realty Corp. 2010 Notional Unit Long-Term Compensation Plan

        In December 2009, the compensation committee of our board of directors approved the general terms of the SL Green Realty Corp. 2010 Notional Unit Long-Term Compensation Program, or the 2010 Long Term Compensation Plan. The 2010 Long-Term Compensation Plan is a long-term incentive compensation plan pursuant to which award recipients may earn, in the aggregate, from approximately $15 million up to approximately $75 million of LTIP Units in our Operating Partnership based on our stock price appreciation over three years beginning on December 1, 2009; provided that, if maximum performance has been achieved, approximately $25 million of awards may be earned at any time after the beginning of the second year and an additional approximately $25 million of awards may be earned at any time after the beginning of the third year. The amount of awards earned will range from approximately $15 million if our aggregate stock price appreciation during the performance period is 25% to the maximum amount of approximately $75 million if our aggregate stock price appreciation during the performance period is 50% or greater. No awards will be earned if our aggregate stock price appreciation is less than 25%. After the awards are earned, they will remain subject to vesting, with 50% of any LTIP Units earned vesting on January 1, 2013 and an additional 25% vesting on each of January 1, 2014 and 2015 based, in each case, on continued employment through the vesting date. We will not pay distributions on any LTIP Units until they are earned, at which time we will pay all distributions that would have been paid on the earned LTIP Units since the beginning of the performance period. In January 2011, the compensation committee determined that under the terms of the 2010 Long Term Compensation Plan, as of December 5, 2010, maximum performance had been achieved and, accordingly, approximately 366,815 LTIP Units had been earned under the 2010 Long-Term Compensation Plan. In January 2012, the compensation committee determined that under the terms of the 2010 Long Term Compensation Plan, as of December 1, 2011, maximum performance had been achieved and, accordingly, approximately 385,583 LTIP Units had been earned under the 2010 Long-Term Compensation Plan. In accordance with the terms of the program, 50% of these LTIP Units will vest on January 1, 2013 and the remainder is scheduled to vest ratably over the subsequent two years based on continued employment.

        Overall, the 2010 Long Term Compensation Plan contemplates maximum potential awards of 1,179,987 LTIP Units and a cap of approximately $75 million when earned. However, sufficient shares were not available under the 2005 Plan to fund the entire 2010 Long Term Compensation Plan in December 2009, and the awards granted at that time, in the aggregate, were limited to 744,128 LTIP Units, subject to performance-based and time-based vesting, unless and until additional shares became available under the 2005 Plan prior to the end of the performance period for the 2010 Long Term Compensation Plan. At our annual meeting of stockholders on June 15, 2010, our stockholders approved the adoption of the 2005 Plan which, among other things, increased the number of shares available under the plan. That increase allowed us to award the balance of the LTIP Units due under the 2010 Long-Term Compensation Plan. The remaining awards were granted in June 2010. The cost of the 2010 Long Term Compensation Plan (approximately $31.7 million, subject to forfeitures) will be amortized into earnings through the final vesting period. We recorded compensation expense of approximately $9.3 million, $4.0 million and $0.6 million during the years ended December 31, 2011, 2010 and 2009, respectively, related to this program.

SL Green Realty Corp. 2011 Outperformance Plan

        In August 2011, the compensation committee of our board of directors approved the general terms of the SL Green Realty Corp. 2011 Outperformance Plan, or the 2011 Outperformance Plan. Participants in the 2011 Outperformance Plan may earn, in the aggregate, up to $85 million of LTIP Units in our Operating Partnership based on our total return to stockholders for the three-year period beginning September 1, 2011. Under the 2011 Outperformance Plan, participants will be entitled to share in a "performance pool" comprised of LTIP Units with a value equal to 10% of the amount, if any, by which our total return to stockholders during the three-year period exceeds a cumulative total return to stockholders of 25%, subject to the maximum of $85 million of LTIP Units; provided that if maximum performance has been achieved, approximately one-third of each award may be earned at any time after the beginning of the second year and an additional approximately one-third of each award may be earned at any time after the beginning of the third year. LTIP Units earned under the 2011 Outperformance Plan will be subject to continued vesting requirements, with 50% of any awards earned vesting on August 31, 2014 and the remaining 50% vesting on August 31, 2015, subject to continued employment with us through such dates. Participants will not be entitled to distributions with respect to LTIP Units granted under the 2011 Outperformance Plan unless and until they are earned. If LTIP Units are earned, each participant will also be entitled to the distributions that would have been paid had the number of earned LTIP Units been issued at the beginning of the performance period, with such distributions being paid in the form of additional LTIP Units. Thereafter, distributions will be paid currently with respect to all earned LTIP Units, whether vested or unvested.

        As of December 31, 2011, only 50% of the 2011 Outperformance Plan had been granted. The cost of the 2011 Outperformance Plan for the 50% granted (approximately $12.1 million, subject to forfeitures) will be amortized into earnings through the final vesting period. We recorded compensation expense of approximately $0.1 million during the year ended December 31, 2011 related to this program.

Deferred Stock Compensation Plan for Directors

        Under our Independent Director's Deferral Program, which commenced July 2004, our non-employee directors may elect to defer up to 100% of their annual retainer fee, chairman fees and meeting fees. Unless otherwise elected by a participant, fees deferred under the program shall be credited in the form of phantom stock units. The phantom stock units are convertible into an equal number of shares of common stock upon such directors' termination of service from the Board of Directors or a change in control by us, as defined by the program. Phantom stock units are credited to each non-employee director quarterly using the closing price of our common stock on the applicable dividend record date for the respective quarter. Each participating non-employee director's account is also credited for an equivalent amount of phantom stock units based on the dividend rate for each quarter.

        During the year ended December 31, 2011, approximately 8,184 phantom stock units were earned. As of December 31, 2011, there were approximately 66,849 phantom stock units outstanding.

Employee Stock Purchase Plan

        On September 18, 2007, our board of directors adopted the 2008 Employee Stock Purchase Plan, or ESPP, to encourage our employees to increase their efforts to make our business more successful by providing equity-based incentives to eligible employees. The ESPP is intended to qualify as an "employee stock purchase plan" under Section 423 of the Internal Revenue Code of 1986, as amended, and has been adopted by the board to enable our eligible employees to purchase our shares of common stock through payroll deductions. The ESPP became effective on January 1, 2008 with a maximum of 500,000 shares of the common stock available for issuance, subject to adjustment upon a merger, reorganization, stock split or other similar corporate change. We filed a registration statement on Form S-8 with the SEC with respect to the ESPP. The common stock is offered for purchase through a series of successive offering periods. Each offering period will be three months in duration and will begin on the first day of each calendar quarter, with the first offering period having commenced on January 1, 2008. The ESPP provides for eligible employees to purchase the common stock at a purchase price equal to 85% of the lesser of (1) the market value of the common stock on the first day of the offering period or (2) the market value of the common stock on the last day of the offering period. The ESPP was approved by our stockholders at our 2008 annual meeting of stockholders. As of December 31, 2011, approximately 55,600 shares of our common stock had been issued under the ESPP.

Earnings per Share

        Earnings per share for the years ended December 31, is computed as follows (in thousands):

Numerator (Income)	2011		2010		2009
Basic Earnings:
Income attributable to SL Green common stockholders	$	617,232	$	270,826	$	37,669
Effect of Dilutive Securities:
Redemption of units to common shares		14,629		4,574		1,221
Stock options		—		—		—
Diluted Earnings:
Income attributable to SL Green common stockholders	$	631,861	$	275,400	$	38,890

Denominator Weighted Average (Shares)	2011		2010		2009
Basic Shares:
Shares available to common stockholders		83,762		78,101		69,735
Effect of Dilutive Securities:
Redemption of units to common shares		1,985		1,321		2,230
3.0% exchangeable senior debentures due 2017		—		—		—
3.0% exchangeable senior debentures due 2027		—		—		—
4.0% exchangeable senior debentures due 2025		—		—		—
Stock-based compensation plans		497		339		79
Diluted Shares		86,244		79,761		72,044

        We have excluded approximately 680,000, 804,800 and 772,529 common stock equivalents from the diluted shares outstanding for the years ended December 31, 2011, 2010 and 2009, respectively, as they were anti-dilutive.

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Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2011

Significant Accounting Policies

Schedule of estimated useful lives

Category	Term
Building (fee ownership)	40 years
Building improvements	shorter of remaining life of the building or useful life
Building (leasehold interest)	lesser of 40 years or remaining term of the lease
Property under capital lease	remaining lease term
Furniture and fixtures	four to seven years
Tenant improvements	shorter of remaining term of the lease or useful life

Summary of identified intangible assets (acquired above-market leases and in-place leases) and intangible liabilities (acquired below-market leases)

	December 31, 2011			December 31, 2010
Identified intangible assets (included in other assets):
Gross amount	$	673,495		$	758,300
Accumulated amortization		(193,442	)		(133,737	)
Net	$	480,053		$	624,563
Identified intangible liabilities (included in deferred revenue):
Gross amount	$	622,029		$	508,339
Accumulated amortization		(290,893	)		(220,417	)
Net	$	331,136		$	287,922

Schedule of estimated annual amortization of acquired below-market leases, net of acquired above-market leases

2012	$	10,767
2013		9,787
2014		7,869
2015		6,404
2016		5,664

Schedule of estimated annual amortization of all other identifiable assets

2012	$	11,818
2013		10,229
2014		7,507
2015		5,821
2016		4,204

Schedule of marketable securities

	December 31,
	2011		2010
Level 1—Equity marketable securities	$	8,065	$	12,357
Level 2—Commercial mortgage-backed securities		13,369		17,445
Level 3—Rake bonds		3,889		4,250
Total marketable securities available-for-sale	$	25,323	$	34,052

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Benefit Plans

12 Months Ended

Dec. 31, 2011

Benefit Plans

Benefit Plans

15. Benefit Plans

        The building employees are covered by multi-employer defined benefit pension plans and post-retirement health and welfare plans. We participate in the Building Service 32BJ, or Union, Pension Plan and Health Plan. The Pension Plan is a multi-employer, non-contributory defined benefit pension plan that was established under the terms of collective bargaining agreements between the Service Employees International Union, Local 32BJ, the Realty Advisory Board on Labor Relations, Inc. and certain other employees. This Pension Plan is administered by a joint board of trustees consisting of union trustees and employer trustees and operates under employer identification number 13-1879376. The Pension Plan year runs from July 1 to June 30. Employers contribute to the Pension Plan at a fixed rate on behalf of each covered employee. Separate actuarial information regarding such pension plans is not made available to the contributing employers by the union administrators or trustees, since the plans do not maintain separate records for each reporting unit. However, on September 28, 2010 and September 28, 2011, the actuary certified that for the plan years beginning July 1, 2010 and July 1, 2011, respectively, the Pension Plan was in critical status under the Pension Protection Act of 2006. The Pension Plan trustees adopted a rehabilitation plan consistent with this requirement. No surcharges have been paid to the Pension Plan as of December 31, 2011. For the years ended December 31, 2011, 2010 and 2009, the Pension Plan received contributions from employers totaling $201.3 million, $193.3 million and $177.7 million, respectively.

        The Health Plan was established under the terms of collective bargaining agreements between the Union, the Realty Advisory Board on Labor Relations, Inc. and certain other employers. The Health Plan provides health and other benefits to eligible participants employed in the building service industry who are covered under collective bargaining agreements, or other written agreements, with the Union. The Health Plan is administered by a Board of Trustees with equal representation by the employers and the Union and operates under employer identification number 13-2928869. The Health Plan receives contributions in accordance with collective bargaining agreements or participation agreements. Generally, these agreements provide that the employers contribute to the Health Plan at a fixed rate on behalf of each covered employee. Pursuant to the contribution diversion provision in the collective bargaining agreements, the collective bargaining parties agreed, beginning January 1, 2009, to divert to the Pension Plan $1.95 million of employer contributions per quarter that would have been due to the Health Plan. Effective October 1, 2010, the diversion of contributions was discontinued. For the years ended December 31, 2011, 2010 and 2009, the Health Plan received contributions from employers totaling $843.2 million, $770.8 million and $705.5 million, respectively.

        Contributions we made to the multi-employer plans for the years ended December 31, 2011, 2010 and 2009 are included in the table below (in thousands):

Benefit Plan	2011		2010		2009
Pension Plan	$	2,264	$	1,835	$	1,704
Health Plan		6,919		5,754		5,319
Other plans		5,111		4,143		3,638
Total plan contributions	$	14,294	$	11,732	$	10,661

401(K) Plan

        In August 1997, we implemented a 401(K) Savings/Retirement Plan, or the 401(K) Plan, to cover eligible employees of ours, and any designated affiliate. The 401(K) Plan permits eligible employees to defer up to 15% of their annual compensation, subject to certain limitations imposed by the Code. The employees' elective deferrals are immediately vested and non-forfeitable upon contribution to the 401(K) Plan. During 2000, we amended our 401(K) Plan to include a matching contribution, subject to ERISA limitations, equal to 50% of the first 4% of annual compensation deferred by an employee. During 2003, we amended our 401(K) Plan to provide for discretionary matching contributions only. For 2011, 2010 and 2009, a matching contribution equal to 50% of the first 6% of annual compensation was made. For the years ended December 31, 2011, 2010 and 2009, we made matching contributions of approximately $502,000, $450,000 and $450,000, respectively.

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Investment in Unconsolidated Joint Ventures (Details 2) (USD $)				1 Months Ended	12 Months Ended																																						1 Months Ended					1 Months Ended		1 Months Ended	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2011 1515 Broadway	Apr. 30, 2011 521 Fifth Avenue y	Dec. 31, 2011 521 Fifth Avenue	Dec. 31, 2011 Joint venture	Dec. 31, 2010 Joint venture	Dec. 31, 2009 Joint venture	Dec. 31, 2011 Joint venture 100 Park Avenue	Dec. 31, 2010 Joint venture 100 Park Avenue	Dec. 31, 2011 Joint venture 21 West 34th Street	Dec. 31, 2010 Joint venture 21 West 34th Street	Dec. 31, 2011 Joint venture 800 Third Avenue	Dec. 31, 2010 Joint venture 800 Third Avenue	Dec. 31, 2011 Joint venture One Court Square	Dec. 31, 2010 Joint venture One Court Square	Dec. 31, 2011 Joint venture 1604-1610 Broadway	Dec. 31, 2010 Joint venture 1604-1610 Broadway	Dec. 31, 2011 Joint venture 388 and 390 Greenwich Street	Dec. 31, 2010 Joint venture 388 and 390 Greenwich Street	Dec. 31, 2011 Joint venture 388 and 390 Greenwich Street Mortgage loan	Dec. 31, 2011 Joint venture 388 and 390 Greenwich Street Mezzanine loans	Dec. 31, 2011 Joint venture 1745 Broadway	Dec. 31, 2010 Joint venture 1745 Broadway	Dec. 31, 2011 Joint venture 141 Fifth Avenue	Dec. 31, 2010 Joint venture 141 Fifth Avenue	Dec. 31, 2011 Joint venture 1 and 2 Jericho Plaza	Dec. 31, 2010 Joint venture 1 and 2 Jericho Plaza	Dec. 31, 2011 Joint venture 11 West 34th Street	Dec. 31, 2010 Joint venture 11 West 34th Street	Dec. 31, 2011 Joint venture 280 Park Avenue	Dec. 31, 2010 Joint venture 1515 Broadway	Dec. 31, 2011 Joint venture The Meadows	Dec. 31, 2010 Joint venture The Meadows	Dec. 31, 2011 Joint venture 16 Court Street	Dec. 31, 2010 Joint venture 16 Court Street	Dec. 31, 2011 Joint venture 27-29 West 34th Street	Dec. 31, 2010 Joint venture 27-29 West 34th Street	Dec. 31, 2010 Joint venture 1551-1555 Broadway	Dec. 31, 2010 Joint venture 521 Fifth Avenue	Dec. 31, 2011 Joint venture 717 Fifth Avenue	Dec. 31, 2010 Joint venture 717 Fifth Avenue	May 31, 2011 Joint venture 379 West Broadway y	Dec. 31, 2011 Joint venture 379 West Broadway	Dec. 31, 2010 Joint venture 379 West Broadway	Dec. 31, 2011 Joint venture 600 Lexington Avenue	Dec. 31, 2010 Joint venture 600 Lexington Avenue	Dec. 31, 2010 Joint venture 180/182 Broadway and 63 Nassu Street	Dec. 31, 2011 Joint venture 180/182 Broadway and 63 Nassu Street	Apr. 30, 2011 Joint venture 3 Columbus Circle y	Dec. 31, 2011 Joint venture 3 Columbus Circle	Dec. 31, 2011 Joint venture 1552 Broadway	Dec. 31, 2011 Joint venture 747 Madison Avenue	Dec. 31, 2011 Joint venture Non Collateralized
First mortgage notes and other loan payable
Interest rate, fixed rate debt (as a percent)									6.64%	6.64%	5.76%	5.76%	6.00%	6.00%	4.91%	4.91%	5.66%	5.66%	5.19%	5.19%			5.68%	5.68%	5.70%	5.70%	5.65%	5.65%	4.82%	4.82%	6.57%
Interest rate, floating rate debt (as a percent)			3.50%		2.25%														1.43%	1.43%													1.63%	1.63%	2.75%	2.75%	1.90%	1.90%			5.25%	5.25%		1.94%	1.94%	2.38%	2.38%	3.00%	3.00%		2.47%	3.28%	3.02%	1.15%
Total fixed rate debt	$ 3,431,353,000	$ 2,935,817,000				$ 3,040,803,000	$ 2,321,364,000		$ 214,625,000	$ 204,946,000	$ 100,000,000	$ 100,000,000	$ 20,910,000	$ 20,910,000	$ 315,000,000	$ 315,000,000	$ 27,000,000	$ 27,000,000	$ 1,106,757,000	$ 1,106,758,000			$ 340,000,000	$ 340,000,000	$ 25,000,000	$ 25,000,000	$ 163,750,000	$ 163,750,000	$ 17,761,000	$ 18,000,000	$ 710,000,000
Other loan payable																																																						30,000,000
Total floating rate debt	942,487,000	464,651,000	450,363,000		150,000,000	1,091,087,000	1,390,871,000												31,622,000	31,622,000	16,000,000	15,600,000										462,896,000	84,698,000	87,034,000	85,728,000	86,844,000	53,900,000	54,375,000	128,600,000	140,000,000	245,000,000	245,000,000		20,991,000	20,991,000	125,000,000	125,000,000	8,509,000	30,722,000		254,896,000	95,405,000	33,125,000
Total mortgages and other loans payable	4,314,741,000	3,400,468,000				4,131,890,000	3,712,235,000														576,000,000	562,400,000
Committed amount																																	91,200,000								285,000,000								90,000,000			125,000,000
Maximum amount of loan recourse to entity						200,000,000																200,000,000
Mortgage repaid																																																31,000,000
Refinanced mortgage loan																																																		260,000,000
Portion of bridge loan provided to joint venture (as a percent)																																																		50.00%
Term of refinanced mortgage (in years)				2																																														5
Interest rate added to base rate (as a percent)					2.00%																																														2.10%
Interest rate, description				30-day LIBOR	30-Day LIBOR																																														30-day LIBOR
Possible increase in mortgage based on meeting certain performance hurdles																																																			40,000,000
Management, leasing, construction supervision and asset management services revenue						$ 12,100,000	$ 14,600,000	$ 19,000,000
Period for which the loan is extended (in years)																																											1

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Consolidated Statements of Equity (Parenthetical) (USD $)	3 Months Ended			12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
Consolidated Statements of Equity
Cash distribution declared, per common share (in dollars per share)	$ 0.25	$ 0.10	$ 0.10	$ 0.55	$ 0.40	$ 0.675

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Consolidated Balance Sheets (Parenthetical) (USD $) In Thousands, except Per Share data, unless otherwise specified			12 Months Ended		12 Months Ended		12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2011 Series C Preferred Stock	Dec. 31, 2010 Series C Preferred Stock	Dec. 31, 2011 Series D Preferred Stock	Dec. 31, 2010 Series D Preferred Stock	Dec. 31, 2011 Series H Preferred Units
Tenant and other receivables, allowance (in dollars)	$ 16,772	$ 12,981
Deferred rents receivable, allowance (in dollars)	29,156	30,834
Debt and preferred equity investments, discount (in dollars)	24,996	42,937
Debt and preferred equity investments, allowance (in dollars)	$ 50,175	$ 61,361
Preferred Units (as a percent)			7.625%		7.875%		6.00%
Preferred Units, par value (in dollars per share)							$ 0.01
Preferred units, shares issued							80
Preferred Units, shares outstanding							80
Preferred units, liquidation preference (in dollars per share)							$ 25.00
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01	$ 0.01	$ 0.01	$ 0.01	$ 0.01
Preferred stock, liquidation preference (in dollars per share)			$ 25.00	$ 25.00	$ 25.00	$ 25.00
Preferred stock, shares issued			11,700	11,700	4,000	4,000
Preferred stock, shares outstanding			11,700	11,700	4,000	4,000
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized	160,000	160,000
Common stock, shares issued	89,210	81,675
Common stock, shares outstanding	89,210	81,675
Treasury stock, shares	3,427	3,369

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Mortgages and Other Loans Payable

12 Months Ended

Dec. 31, 2011

Mortgages and Other Loans Payable.

Mortgages and Other Loans Payable

8. Mortgages and Other Loans Payable

        The first mortgages and other loans payable collateralized by the respective properties and assignment of leases at December 31, 2011 and 2010, respectively, were as follows (in thousands):

Property(1)	Maturity Date		Interest Rate(2)			December 31, 2011		December 31, 2010
711 Third Avenue		06/2015		4.99	%	$	120,000	$	120,000
420 Lexington Avenue(3)		09/2016		7.15	%		187,182		149,141
673 First Avenue		02/2013		5.67	%		29,906		30,781
220 East 42nd Street		11/2013		5.24	%		190,431		194,758
625 Madison Avenue		11/2015		7.22	%		129,098		132,209
609 Fifth Avenue		10/2013		5.85	%		94,963		96,502
609 Partners, LLC(15)		07/2014		5.00	%		31,721		31,722
485 Lexington Avenue		02/2017		5.61	%		450,000		450,000
120 West 45th Street		02/2017		6.12	%		170,000		170,000
919 Third Avenue(4)		06/2023		5.12	%		500,000		219,879
300 Main Street		02/2017		5.75	%		11,500		11,500
500 West Putnam		01/2016		5.52	%		24,563		25,000
One Madison Avenue		05/2020		5.91	%		626,740		640,076
125 Park Avenue		10/2014		5.75	%		146,250		146,250
2 Herald Square		04/2017		5.36	%		191,250		191,250
885 Third Avenue		07/2017		6.26	%		267,650		267,650
292 Madison Avenue(14)		08/2017		6.17	%		59,099		59,099
110 East 42nd Street(5)		07/2017		5.81	%		65,000		—
Landmark Square		12/2016		4.00	%		86,000		—
Other loan payable(13)		09/2019		8.00	%		50,000		—
Total fixed rate debt						$	3,431,353	$	2,935,817
100 Church Street(6)		—		—		$	—	$	139,672
Landmark Square(7)		—		—			—		110,180
28 West 44th Street(8)		—		—			—		122,007
521 Fifth Avenue(9)		04/2013		2.25	%		150,000		—
1515 Broadway(10)		12/2014		3.50	%		450,363		—
180 Maiden Lane(16)		11/2016		2.56	%		279,332		—
Other loan payable(11)		06/2013		3.47	%		62,792		62,792
Other loan payable(12)		—		—			—		30,000
Total floating rate debt						$	942,487	$	464,651
Total mortgages and other loans payable						$	4,373,840	$	3,400,468

⁽¹⁾

Held in bankruptcy remote special purpose entities.

⁽²⁾

Effective interest rate for the quarter ended December 31, 2011.

⁽³⁾

We increased this loan by $40.0 million in March 2011.

⁽⁴⁾

We own a 51% controlling interest in the joint venture that is the borrower on this loan. This loan is non-recourse to us. In June 2011, our joint venture replaced the $219.9 million 6.87% mortgage that was due to mature in August 2011 with a $500.0 million mortgage.

⁽⁵⁾

We took control of this property in May 2011 and assumed the mortgage as part of the transaction. This loan consists of a $65.0 million A-tranche and an $18.1 million B-tranche. The B-tranche does not accrue interest and is due only under certain circumstances as described in the loan agreement.

⁽⁶⁾

This mortgage was repaid in March 2011.

⁽⁷⁾

The final loan renewal option was exercised in December 2010. This loan was repaid in May 2011.

⁽⁸⁾

This property was sold in May 2011 and the related mortgage was repaid.

⁽⁹⁾

We assumed a $140.0 million mortgage in connection with the acquisition of the remaining partnership interest in January 2011. As a result, we have consolidated this investment since January 2011. The mortgage was schedule to mature in April 2011. In April 2011, we refinanced the property with a new $150.0 million 2-year mortgage which carries a floating rate of interest of 200 basis points over the 30-day LIBOR.

⁽¹⁰⁾

We acquired the remaining interest in this joint venture in April 2011. As a result, we have consolidated this investment since April 2011.

⁽¹¹⁾

This loan bears interest at 250 basis points over the three month GBP LIBOR. This loan is denominated in British Pounds.

⁽¹²⁾

In March 2011, this loan was assigned to a joint venture. See Note 5.

⁽¹³⁾

This loan is secured by a portion of a preferred equity investment.

⁽¹⁴⁾

This loan is included in liabilities related to assets held for sale at December 31, 2011 as the property is held for sale as of that date. See Note 4.

⁽¹⁵⁾

As part of an acquisition, the Operating Partnership issued 63.9 million units of our 5.0% Series E preferred units, or the Series E units, with a liquidation preference of $1.00 per unit. As of December 31, 2011, 32.2 million Series E units had been redeemed.

⁽¹⁶⁾

In connection with this obligation, SLG has executed a master lease agreement. SLG's partner has executed a contribution agreement to reflect its pro rata obligation under the master lease.

        In September 2010, we repaid a $104.0 million loan payable which had been secured by our interest in a debt investment.

        At December 31, 2011 and 2010, the gross book value of the assets collateralizing the mortgages and other loans payable was approximately $7.4 billion and $5.8 billion, respectively.

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Schedule II-Valuation and Qualifying Accounts (Details) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
Tenant and other receivables - allowance
Changes in valuation allowance
Balance at Beginning of Year	$ 12,981	$ 14,271	$ 16,898
Additions Charged Against Operations	4,537	2,165	1,006
Uncollectible Accounts Written-off	(746)	(3,455)	(3,633)
Balance at End of Year	16,772	12,981	14,271
Deferred rent receivable - allowance
Changes in valuation allowance
Balance at Beginning of Year	30,834	24,347	19,648
Additions Charged Against Operations	6,638	3,138	6,467
Uncollectible Accounts Written-off	(8,316)	3,349	(1,768)
Balance at End of Year	$ 29,156	$ 30,834	$ 24,347

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Quarterly Financial Data (unaudited) (Details) (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended								12 Months Ended
	Dec. 31, 2011	Sep. 30, 2011	Jun. 30, 2011	Mar. 31, 2011	Dec. 31, 2010	Sep. 30, 2010	Jun. 30, 2010	Mar. 31, 2010	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
Quarterly Financial Data (unaudited)
Total revenues	$ 328,877	$ 306,624	$ 298,705	$ 329,222	$ 262,785	$ 319,149	$ 251,684	$ 250,768	$ 1,263,428	$ 1,084,386	$ 978,361
Income net of noncontrolling interests and before gains on sale	1,833	9,544	10,176	72,898	14,563	81,340	16,687	20,674
Equity in net gain (loss) on sale of interest in unconsolidated joint venture/ real estate	(114)	3,032			1,633	520	126,769		2,918	128,921	6,691
Purchase price fair value adjustment	8,306	999	475,102	13,788					498,195
Gain on early extinguishment of debt		(67)	971			(511)	(1,276)	(113)	904	(1,900)	86,006
Gain (loss) on equity investment in marketable securities	4,999		(6)	(127)	775			(285)	4,866	490	(396)
Depreciable real estate reserves	(5,789)				(2,750)				(5,789)	(2,750)
Net income from discontinued operations	1,116	1,116	1,675	1,873	533	2,211	2,403	1,917	5,780	7,064	7,318
Gain (loss) on sale of discontinued operations			46,085			35,485			46,085	35,485	(6,841)
Net income (loss) attributable to SL Green	10,351	14,624	534,003	88,432	14,754	119,045	144,583	22,193	647,410	300,575	57,544
Preferred stock dividends	(7,543)	(7,545)	(7,545)	(7,545)	(7,545)	(7,545)	(7,545)	(7,114)	(30,178)	(29,749)	(19,875)
Net income attributable to SL Green common stockholders	$ 2,808	$ 7,079	$ 526,458	$ 80,887	$ 7,209	$ 111,500	$ 137,038	$ 15,079	$ 617,232	$ 270,826	$ 37,669
Net income (loss) per common share-Basic (in dollars per share)	$ 0.03	$ 0.08	$ 6.30	$ 1.02	$ 0.09	$ 1.43	$ 1.76	$ 0.19	$ 7.37	$ 3.47	$ 0.54
Net income (loss) per common share-Diluted (in dollars per share)	$ 0.03	$ 0.08	$ 6.26	$ 1.01	$ 0.09	$ 1.42	$ 1.75	$ 0.19	$ 7.33	$ 3.45	$ 0.54

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Document and Entity Information (USD $) In Billions, except Share data, unless otherwise specified	12 Months Ended
	Dec. 31, 2011	Feb. 15, 2012	Jun. 30, 2011
Document and Entity Information
Entity Registrant Name	SL GREEN REALTY CORP
Entity Central Index Key	0001040971
Document Type	10-K
Document Period End Date	Dec. 31, 2011
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Public Float			$ 6.5
Entity Common Stock, Shares Outstanding		86,368,447
Document Fiscal Year Focus	2011
Document Fiscal Period Focus	FY

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Corporate Indebtedness

12 Months Ended

Dec. 31, 2011

Corporate Indebtedness

Corporate Indebtedness

9. Corporate Indebtedness

2011 Revolving Credit Facility

        In November 2011, we entered into a $1.5 billion revolving credit facility, or the 2011 revolving credit facility. The 2011 revolving credit facility bears interest at a spread over LIBOR ranging from 100 basis points to 185 basis points, based on the credit rating assigned to the senior unsecured long term indebtedness of ROP. At December 31, 2011, the applicable spread was 150 basis points. The 2011 revolving credit facility matures in November 2015 and has a one-year as-of-right extension option, subject to certain conditions and the payment of an extension fee of 20 basis points. We also have an option, subject to customary conditions, without the consent of existing lenders, to increase the capacity under the 2011 revolving credit facility to $1.75 billion at any time prior to the maturity date. We are required to pay quarterly in arrears a 17.5 to 45 basis point facility fee on the total commitments under the 2011 revolving credit facility, which fee is based on the credit rating assigned to the senior unsecured long term indebtedness of ROP. As of December 31, 2011, the facility fee was 35 basis points. At December 31, 2011, we had approximately $350.0 million of borrowings and outstanding letters of credit totaling approximately $99.3 million outstanding under the 2011 revolving credit facility, with undrawn capacity of approximately $1.1 billion.

        The Company, ROP, and the Operating Partnership are all borrowers jointly and severally obligated under the 2011 revolving credit facility. No other subsidiary of ours is an obligor under the 2011 revolving credit facility.

        The 2011 revolving credit facility includes certain restrictions and covenants (see Restrictive Covenants below).

2007 Revolving Credit Facility

        The 2011 revolving credit facility replaced our $1.5 billion revolving credit facility, or the 2007 revolving credit facility, which was terminated concurrently with the entering into the 2011 revolving credit facility. The 2007 revolving credit facility bore interest at a spread over the 30-day LIBOR ranging from 70 basis points to 110 basis points, based on our leverage ratio, and required a 12.5 to 20 basis point fee, also based on our leverage ratio, on the unused balance payable annually in arrears. The 2007 revolving credit facility included certain restrictions and covenants and, as of the time of the termination of the 2007 revolving credit facility and as of October 31, 2011, we were in compliance with all such restrictions and covenants.

Senior Unsecured Notes

        The following table sets forth our senior unsecured notes and other related disclosures by scheduled maturity date as of December 31, 2011 and 2010, respectively (in thousands):

Issuance	December 31, 2011 Unpaid Principal Balance		December 31, 2011 Accreted Balance		December 31, 2010 Accreted Balance		Coupon Rate(4)			Effective Rate			Term (in Years)		Maturity
January 22, 2004(1)(5)(7)	$	—	$	—	$	84,823		5.15	%		5.900	%		7		January 15, 2011
August 13, 2004(1)(5)		98,578		98,578		98,578		5.875	%		6.100	%		10		August 15, 2014
March 31, 2006(1)		275,000		274,804		274,764		6.00	%		6.200	%		10		March 31, 2016
March 16, 2010(8)		250,000		250,000		250,000		7.75	%		7.750	%		10		March 15, 2020
June 27, 2005(1)(2)(5)		657		657		657		4.00	%		4.000	%		20		June 15, 2025
March 26, 2007(3)(5)		120,157		119,423		123,171		3.00	%		5.460	%		20		March 30, 2027
October 12, 2010(6)		345,000		277,629		268,552		3.00	%		7.125	%		7		October 15, 2017
August 5, 2011(8)		250,000		249,565		—		5.00	%		5.000	%		7		August 15, 2018
	$	1,339,392	$	1,270,656	$	1,100,545

⁽¹⁾

Issued by ROP.

⁽²⁾

Exchangeable senior debentures which are currently callable at 100% of par. In addition, the debentures can be put to us, at the option of the holder at par plus accrued and unpaid interest, on June 15, 2015 and 2020 and upon the occurrence of certain change of control transactions. As a result of the acquisition of all outstanding shares of common stock of Reckson Associates Realty Corp., or the Reckson Merger, the adjusted exchange rate for the debentures is 7.7461 shares of our common stock per $1,000 of principal amount of debentures and the adjusted reference dividend for the debentures is $1.3491. During the year ended December 31, 2010, we repurchased approximately $115.4 million of these debentures, inclusive of debentures purchased in the tender offer discussed in Note (5) below, and realized a net loss on early extinguishment of debt of approximately $0.3 million. On the date of the Reckson Merger, $13.1 million was recorded in equity and was fully amortized as of June 30, 2010.

⁽³⁾

In March 2007, the Operating Partnership issued $750.0 million of these exchangeable notes. Interest on these notes is payable semi-annually on March 30 and September 30. The notes have an initial exchange rate representing an exchange price that was set at a 25.0% premium to the last reported sale price of our common stock on March 20, 2007, or $173.30. The initial exchange rate is subject to adjustment under certain circumstances. The notes are senior unsecured obligations of our Operating Partnership and are exchangeable upon the occurrence of specified events, and during the period beginning on the twenty-second scheduled trading day prior to the maturity date and ending on the second business day prior to the maturity date, into cash or a combination of cash and shares of our common stock, if any, at our option. The notes are redeemable, at our option, on and after April 15, 2012. We may be required to repurchase the notes on March 30, 2012, 2017 and 2022, and upon the occurrence of certain designated events. The net proceeds from the offering were approximately $736.0 million, after deducting estimated fees and expenses. The proceeds of the offering were used to repay certain of our existing indebtedness, make investments in additional properties, and make open market purchases of our common stock and for general corporate purposes. During the year ended December 31, 2010, we repurchased approximately $41.7 million of these bonds, inclusive of notes purchased in the tender offer discussed in Note (5) below, and realized a net loss on early extinguishment of debt of approximately $0.5 million. On the issuance date, $66.6 million was recorded in equity. As of December 31, 2011, approximately $0.7 million remained unamortized.

⁽⁴⁾

Interest on the senior unsecured notes is payable semi-annually with principal and unpaid interest due on the scheduled maturity dates.

⁽⁵⁾

In April 2010, we completed a cash tender offer and purchased $13.0 million of the outstanding 3.000% Exchangeable Senior Notes due 2027 issued by the Operating Partnership, and $13.2 million of the outstanding 4.000% Exchangeable Senior Debentures due 2025, $38.8 million of the 5.150% Notes due 2011 and $50.0 million of the 5.875% Notes due 2014 issued by Reckson.

⁽⁶⁾

In October 2010, the Operating Partnership issued $345.0 million of these exchangeable notes. Interest on these notes is payable semi-annually on April 15 and October 15. The notes have an initial exchange rate representing an exchange price that was set at a 30.0% premium to the last reported sale price of our common stock on October 6, 2010, or $85.81. The initial exchange rate is subject to adjustment under certain circumstances. The notes are senior unsecured obligations of our Operating Partnership and are exchangeable upon the occurrence of specified events, and during the period beginning on the twenty-second scheduled trading day prior to the maturity date and ending on the second business day prior to the maturity date, into cash or a combination of cash and shares of our common stock, if any, at our option. The notes are guaranteed by ROP. The net proceeds from the offering were approximately $336.5 million, after deducting fees and expenses. The proceeds of the offering were used to repay certain of our existing indebtedness, make investments in additional properties, and for general corporate purposes. On the issuance date, $78.3 million was recorded in equity. As of December 31, 2011, approximately $67.4 million remained unamortized.

⁽⁷⁾

In January 2011, the remaining outstanding $84.8 million of ROP's 5.15% unsecured notes were repaid at par on their maturity date.

⁽⁸⁾

Issued by us, the Operating Partnership and ROP, as co-obligors.

Restrictive Covenants

        The terms of the 2011 revolving credit facility and certain of our senior unsecured notes include certain restrictions and covenants which may limit, among other things, our ability to pay dividends (as discussed below), make certain types of investments, incur additional indebtedness, incur liens and enter into negative pledge agreements and the disposition of assets, and which require compliance with financial ratios including our minimum tangible net worth, a maximum ratio of total indebtedness to total asset value, a minimum ratio of EBITDA to fixed charges and a maximum ratio of unsecured indebtedness to unencumbered asset value. The dividend restriction referred to above provides that we will not during any time when we are in default, make distributions with respect to common stock or other equity interests, except to enable us to continue to qualify as a REIT for Federal Income Tax purposes. As of December 31, 2011 and 2010, we were in compliance with all such covenants.

Junior Subordinate Deferrable Interest Debentures

        In June 2005, we issued $100.0 million in unsecured floating rate trust preferred securities through a newly formed trust, SL Green Capital Trust I, or the Trust, which is a wholly-owned subsidiary of our Operating Partnership. The securities mature in 2035 and bear interest at a fixed rate of 5.61% for the first ten years ending July 2015. Interest payments may be deferred for a period of up to eight consecutive quarters if our Operating Partnership exercises its right to defer such payments. The trust preferred securities are redeemable, at the option of our Operating Partnership, in whole or in part, with no prepayment premium. We do not consolidate the Trust even though it is a variable interest entity as we are not the primary beneficiary. Because the Trust is not consolidated, we have recorded the debt on our balance sheet and the related payments are classified as interest expense.

Principal Maturities

        Combined aggregate principal maturities of mortgages and other loans payable, 2011 revolving credit facility, trust preferred securities, senior unsecured notes and our share of joint venture debt as of December 31, 2011, including as-of-right extension options, were as follows (in thousands):

	Scheduled Amortization		Principal Repayments		Revolving Credit Facility		Trust Preferred Securities		Senior Unsecured Notes		Total		Joint Venture Debt
2012	$	52,443	$	—	$	—	$	—	$	119,423	$	171,866	$	176,457
2013		52,470		516,179		—		—		—		568,649		93,683
2014		50,322		597,454		—		—		98,578		746,354		123,983
2015		40,845		229,537		—		—		657		271,039		102,476
2016		39,426		516,974		350,000		—		274,804		1,181,204		527,814
Thereafter		158,551		2,119,639		—		100,000		777,194		3,155,384		800,102
	$	394,057	$	3,979,783	$	350,000	$	100,000	$	1,270,656	$	6,094,496	$	1,824,515

        Interest expense, excluding capitalized interest, was comprised of the following (in thousands):

	Years Ended December 31,
	2011			2010			2009
Interest expense	$	287,921		$	232,794		$	236,961
Interest income		(2,004	)		(2,146	)		(4,306	)
Interest expense, net	$	285,917		$	230,648		$	232,655
Interest capitalized	$	5,123		$	—		$	98

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Equity (Details 4) (USD $)	1 Months Ended	12 Months Ended				1 Months Ended	12 Months Ended					12 Months Ended										12 Months Ended		12 Months Ended
	Apr. 30, 2007 2003 Long-Term Outperformance Compensation Program	Dec. 31, 2011 2003 Long-Term Outperformance Compensation Program y	Dec. 31, 2010 2003 Long-Term Outperformance Compensation Program	Dec. 31, 2009 2003 Long-Term Outperformance Compensation Program	Mar. 31, 2007 2003 Long-Term Outperformance Compensation Program y	Nov. 30, 2008 2005 Long-Term Outperformance Compensation Program	Dec. 31, 2011 2005 Long-Term Outperformance Compensation Program day y	Dec. 31, 2010 2005 Long-Term Outperformance Compensation Program	Dec. 31, 2009 2005 Long-Term Outperformance Compensation Program	Jun. 14, 2006 2005 Long-Term Outperformance Compensation Program	Jun. 08, 2006 2005 Long-Term Outperformance Compensation Program	Dec. 31, 2011 2006 Long-Term Outperformance Compensation Program	Dec. 31, 2010 2006 Long-Term Outperformance Compensation Program	Dec. 31, 2009 2006 Long-Term Outperformance Compensation Program	Dec. 31, 2011 SL Green Realty Corp. 2010 Notional Unit Long-Term Compensation Plan y	Dec. 31, 2010 SL Green Realty Corp. 2010 Notional Unit Long-Term Compensation Plan	Dec. 31, 2009 SL Green Realty Corp. 2010 Notional Unit Long-Term Compensation Plan	Jan. 31, 2012 SL Green Realty Corp. 2010 Notional Unit Long-Term Compensation Plan	Jan. 31, 2011 SL Green Realty Corp. 2010 Notional Unit Long-Term Compensation Plan	Dec. 31, 2011 SL Green Realty Corp. 2010 Notional Unit Long-Term Compensation Plan Minimum	Dec. 31, 2011 SL Green Realty Corp. 2010 Notional Unit Long-Term Compensation Plan Maximum	Dec. 31, 2011 SL Green Realty Corp. 2011 Outperformance Plan	Aug. 31, 2011 SL Green Realty Corp. 2011 Outperformance Plan y	Dec. 31, 2011 Deferred Stock Compensation Plan for Directors	Dec. 31, 2011 Employee Stock Purchase Plan m	Jan. 31, 2008 Employee Stock Purchase Plan
Stock based compensation
Term of long-term compensation program (in years)		7																					3
Minimum return to be achieved for restricted stock awards to be made to plan participant (as a percent)		40.00%					30.00%																25.00%
Performance period		48 months					3 years															3 years
Maximum performance pool established, net of forfeitures	$ 22,825,000									$ 49,250,000													$ 85,000,000
Awards granted (in shares)	166,312																744,128							8,184
Percentage of each award vested					40.00%
Number of years over which remaining percentage of each award is vested					3		2
Fair value of awards on grant date		3,200,000
Percentage of value of awards amortized over four years		40.00%
Percentage of value of awards amortized over five years		20.00%
Percentage of value of awards amortized per year for five years		20.00%
Percentage of value of awards amortized over six years		20.00%
Percentage of value of awards amortized per year for six years		16.67%
Percentage of value of awards amortized over seven years		20.00%
Percentage of value of awards amortized per year for seven years		14.29%
Compensation expense			23,000	100,000				1,600,000	2,300,000			70,000	200,000	400,000	9,300,000	4,000,000	600,000					100,000
Number of consecutive days of maximum performance to earn awards earlier							30
Value of LTIP Units that could be earned expressed as percentage of outperformance amount in excess of the 30% benchmark							10.00%																10.00%
Maximum dilution cap as percentage of outstanding shares and units of limited partnership interest							3.00%
Maximum dilution cap							50,000,000
LTIP units earned (in shares)											490,475							385,583	366,815
Portion of earned LTIP Units vested						one-third																one-third
Cost of the plan, subject to adjustment for forfeitures								8,000,000				16,400,000			31,700,000							12,100,000
Approximate amount of LTIP units that may be earned by the recipients based on stock price appreciation																				15,000,000	75,000,000		85,000,000
Period for appreciation of stock price (in years)															3
Approximate amount of awards that may be earned by recipients after beginning of the second year if maximum performance achieved															25,000,000
Approximate amount of awards that may be earned by recipients after beginning of the third year if maximum performance achieved															$ 25,000,000
Stock price appreciation to earn minimum amount of awards (as a percent)															25.00%
Minimum stock price appreciation to earn maximum amount of awards (as a percent)															50.00%
Percentage of aggregate stock price appreciation below which no awards will be earned															25.00%
Percentage of LTIP Units earned, vesting on January 1, 2013															50.00%
Percentage of LTIP Units earned, vesting on January 1, 2014															25.00%							50.00%
Percentage of LTIP Units earned, vesting on January 1, 2015															25.00%							50.00%
Period over which remainder of awards is scheduled to vest ratably (in years)															2 years
Maximum potential awards of LTIP units (in shares)															1,179,987
Maximum percentage of the annual retainer fee, chairman fees and meeting fees that may be deferred by non-employee directors																								100.00%
Phantom stock units outstanding (in shares)																								66,849
Shares of common stock available for issuance																										500,000
Duration of each offering period starting the first day of each calendar quarter (in months)																									3
Purchase price as a percentage of market value of the common stock																									85.00%
Shares of common stock issued																									55,600
Percentage of awards granted																						50.00%

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Supplemental Disclosure of Non-Cash Investing and Financing Activities (Details) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010
Supplemental Disclosure of Non-Cash Investing and Financing Activities
Issuance of common stock as deferred compensation	$ 699	$ 537
Issuance of units in the operating partnership	62,443
Redemption of units in the operating partnership	865	12,091
Derivative instruments at fair value	1,870	15,299
Assignment of debt investment to joint venture	286,571
Mortgage assigned to joint venture	30,000
Tenant improvements and capital expenditures payable	3,990	1,981
Debt and preferred equity and other investments acquired		30,000
Other non-cash adjustments-investing		302,187
Fair value adjustment to noncontrolling interest in operating partnership	39,040	18,948
Accrued acquisition liabilities	34,500
Assumption of mortgage loans	943,767	803,921
Consolidation of real estate investments and other adjustments	1,156,929
Consolidation of real estate investments - noncontrolling interest in other partnerships	87,264
Deconsolidation of real estate investments - assets		60,783
Deconsolidation of real estate investments - liabilities		$ 47,533

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Consolidated Statements of Income (USD $) In Thousands, except Per Share data, unless otherwise specified	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
Revenues
Rental revenue, net	$ 961,935	$ 782,530	$ 746,579
Escalation and reimbursement	145,596	118,212	119,029
Investment and preferred equity income	120,418	147,926	65,608
Other income	35,479	35,718	47,145
Total revenues	1,263,428	1,084,386	978,361
Expenses
Operating expenses (including $16,126 (2011), $14,234 (2010) and $14,882 (2009) paid to affiliates)	263,709	224,693	209,272
Real estate taxes	174,454	145,830	136,636
Ground rent	32,919	31,191	31,826
Interest expense, net of interest income	285,917	230,648	232,655
Amortization of deferred financing costs	14,118	9,046	7,065
Depreciation and amortization	277,345	225,193	220,396
Loan loss and other investment reserves, net of recoveries	6,722	17,751	150,510
Transaction related costs	5,561	11,849
Marketing, general and administrative	80,103	75,946	73,992
Total expenses	1,140,848	972,147	1,062,352
Income (loss) from continuing operations before equity in net income of unconsolidated joint ventures, gains on sale, purchase price fair value adjustment, noncontrolling interests and discontinued operations	122,580	112,239	(83,991)
Equity in net income from unconsolidated joint ventures	1,583	39,607	62,878
Equity in net gain on sale of interest in unconsolidated joint venture/ real estate	2,918	128,921	6,691
Purchase price fair value adjustment	498,195
Gain (loss) on sale of investment in marketable securities	4,866	490	(396)
Depreciable real estate reserves	(5,789)	(2,750)
Gain (loss) on early extinguishment of debt	904	(1,900)	86,006
Income from continuing operations	625,257	276,607	71,188
Net income from discontinued operations	5,780	7,064	7,318
Gain (loss) on sale of discontinued operations	46,085	35,485	(6,841)
Net income	677,122	319,156	71,665
Net income attributable to noncontrolling interests in the operating partnership	(14,629)	(4,574)	(1,221)
Net income attributable to noncontrolling interests in other partnerships	(15,083)	(14,007)	(12,900)
Net income attributable to SL Green	647,410	300,575	57,544
Preferred stock dividends	(30,178)	(29,749)	(19,875)
Net income attributable to SL Green common stockholders	617,232	270,826	37,669
Amounts attributable to SL Green common stockholders:
Income (loss) from continuing operations	563,718	102,208	30,724
Net income from discontinued operations	5,646	6,946	7,091
Gain (loss) on sale of discontinued operations	45,018	34,894	(6,630)
Gain on sale of unconsolidated joint ventures/ real estate	2,850	126,778	6,484
Net income	$ 617,232	$ 270,826	$ 37,669
Basic earnings per share:
Net income (loss) from continuing operations before gains on sale and discontinued operations (in dollars per share)	$ 6.73	$ 1.31	$ 0.45
Net income from discontinued operations (in dollars per share)	$ 0.07	$ 0.09	$ 0.10
Gain (loss) on sale of discontinued operations (in dollars per share)	$ 0.54	$ 0.45	$ (0.10)
Equity in net gain on sale of interest in unconsolidated joint venture/ real estate (in dollars per share)	$ 0.03	$ 1.62	$ 0.09
Net income attributable to SL Green common stockholders (in dollars per share)	$ 7.37	$ 3.47	$ 0.54
Diluted earnings per share:
Net income (loss) from continuing operations before gains on sale and discontinued operations (in dollars per share)	$ 6.70	$ 1.30	$ 0.45
Net income from discontinued operations (in dollars per share)	$ 0.07	$ 0.09	$ 0.10
Gain (loss) on sale of discontinued operations (in dollars per share)	$ 0.53	$ 0.44	$ (0.10)
Equity in net gain on sale of interest in unconsolidated joint venture/ real estate (in dollars per share)	$ 0.03	$ 1.62	$ 0.09
Net income attributable to SL Green common stockholders (in dollars per share)	$ 7.33	$ 3.45	$ 0.54
Basic weighted average common shares outstanding (in shares)	83,762	78,101	69,735
Diluted weighted average common shares and common share equivalents outstanding (in shares)	86,244	79,761	72,044

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Property Acquisitions

12 Months Ended

Dec. 31, 2011

Property Acquisitions

Property Acquisitions

3. Property Acquisitions

2011 Acquisitions

        In November 2011, we acquired all of the interests in 51 East 42nd Street, a 142,000 square-foot (unaudited) office building for approximately $80.0 million, inclusive of the issuance of $2.0 million, 6.0% Series H preferred operating partnership units. We are currently in the process of analyzing the fair value of the in-place leases; and, consequently, no value has yet been assigned to the leases. Therefore, the purchase price allocation is preliminary and subject to change.

        In November 2011 we, along with The Moinian Group, formed a joint venture to recapitalize 180 Maiden Lane, a fully-leased, 1.1 million-square-foot (unaudited) Class A office tower. The consideration for our 49.9 percent stake in the joint venture included $41.0 million in cash and operating partnership units valued at $31.7 million. In connection with the issuance of these operating partnership units, we recorded an $8.3 million fair value adjustment due to changes in our stock price. Simultaneous with the closing of the recapitalization, the joint venture refinanced the existing $344.2 million indebtedness with a five-year $280-million mortgage. We consolidate this joint venture due to the control we exert over leasing activities at the property. We are currently in the process of analyzing the fair value of the in-place leases; and, consequently, no value has yet been assigned to the leases. Therefore, the purchase price allocation is preliminary and subject to change. We consolidate this joint venture as it is a VIE and we have been designated as the primary beneficiary.

        In May 2011, we acquired a substantial ownership interest in the 205,000-square-foot (unaudited) office condominium at 110 East 42nd Street, along with control of the asset. We had previously provided a $16.0 million senior mezzanine loan as part of our sale of the condominium unit in 2007. The May 2011 transaction included a consensual modification of that loan. In conjunction with the transaction, we successfully restructured the in-place mortgage financing, which had previously been in default.

        The following summarizes our allocation of the purchase price of the assets acquired and liabilities assumed upon the assumption of control over 110 East 42nd Street (in thousands):

Land	$	34,000
Building		46,411
Above market lease value		823
Acquired in-place leases		5,396
Assets acquired		86,630
Below market lease value		2,326
Liabilities assumed		2,326
Purchase price allocation	$	84,304
Net consideration funded at closing	$	2,744
Debt assumed	$	65,000

        In April 2011, we acquired SITQ Immobilier, a subsidiary of Caisse de depot et placement du Quebec, or SITQ's, interest in 1515 Broadway, thereby consolidating full ownership of the 1,750,000 square-foot (unaudited) building. The transaction valued the consolidated interests at $1.23 billion. We acquired the interest subject to the $458.8 million mortgage encumbering the property. We recognized a purchase price fair value adjustment of $475.1 million upon the closing of this transaction. This property, which we initially acquired in May 2002, was previously accounted for as an investment in unconsolidated joint ventures.

        The following summarizes our allocation of the purchase price of the assets acquired and liabilities assumed upon the purchase of partnership interest in 1515 Broadway (in thousands):

Land	$	462,700
Building		707,938
Above market lease value		18,298
Acquired in-place leases		98,661
Other assets, net of other liabilities		27,127
Assets acquired		1,314,724
Fair value adjustment to mortgage note payable		(3,693	)
Below market lease value		84,417
Liabilities assumed		80,724
Purchase price allocation	$	1,234,000
Net consideration funded at closing	$	259,228

        In January 2011, we purchased City Investment Fund, or CIF's, 49.9% interest in 521 Fifth Avenue, thereby assuming full ownership of the 460,000 square-foot (unaudited) building. The transaction valued the consolidated interest at approximately $245.7 million, excluding $4.5 million of cash and other assets acquired. We acquired the interest subject to the $140.0 million mortgage encumbering the property. We recognized a purchase price fair value adjustment of $13.8 million upon the closing of this transaction. In April 2011, we refinanced the property with a new $150.0 million 2-year mortgage which carries a floating rate of interest of 200 basis points over the 30-day LIBOR. In connection with that refinancing, we acquired the fee interest in the property for $15.0 million.

        The following summarizes our allocation of the purchase price of the assets acquired and liabilities assumed upon the purchase of 521 Fifth Avenue (in thousands):

Land	$	110,100
Building		146,686
Above market lease value		3,318
Acquired in-place leases		23,016
Assets acquired		283,120
Below market lease value		25,977
Liabilities assumed		25,977
Purchase price allocation	$	257,143
Net consideration funded at closing	$	70,000

2010 Acquisitions

        In January 2010, we became the sole owner of 100 Church Street, a 1.05 million square-foot (unaudited) office tower located in downtown Manhattan, following the successful foreclosure of the senior mezzanine loan at the property. Our initial investment totaled $40.9 million, which was comprised of a 50% interest in the senior mezzanine loan and two other mezzanine loans at 100 Church Street, which we acquired from Gramercy Capital Corp. (NYSE: GKK), or Gramercy, in the summer of 2007. At closing of the foreclosure, we funded an additional $15.0 million of capital into the project as part of our agreement with Wachovia Bank, N.A. to extend and restructure the existing financing. Gramercy declined to fund its share of this capital and instead transferred its interests in the investment to us at closing. The restructured $139.7 million mortgage carries an interest rate of 350 basis points over the 30-day LIBOR. The restructured mortgage matures in January 2013 and has a one-year extension option.

        The following summarizes our allocation of the purchase price of the assets acquired and liabilities assumed upon the completion of the foreclosure of 100 Church Street (in thousands):

Land	$	32,494
Building		86,806
Acquired above-market leases		118
Acquired in-place leases		17,380
Restricted cash		53,735
Assets acquired		190,533
Mortgage note payable		139,672
Acquired below-market leases		8,025
Other liabilities, net of other assets		1,674
Liabilities assumed		149,371
Net assets acquired	$	41,162

        In August 2010, we acquired 125 Park Avenue, a Manhattan office tower, for $330 million. In connection with the acquisition, we assumed $146.25 million of in-place financing. The 5.748% interest-only loan matures in October 2014.

        The following summarizes our allocation of the purchase price of the assets acquired and liabilities assumed upon the closing of 125 Park Avenue (in thousands):

Land	$	120,900
Building		201,726
Acquired above-market leases		11,282
Acquired in-place leases		28,828
Assets acquired		362,736
Mortgage note payable at fair value		158,397
Acquired below-market leases		20,589
Liabilities assumed		178,986
Net assets acquired	$	183,750

        In December 2010, we completed the acquisition of various investments from Gramercy. This acquisition included (1) the remaining 45% interest in the leased fee at 885 Third Avenue for approximately $39.3 million plus assumed mortgage debt of approximately $120.4 million, (2) the remaining 45% interest in the leased fee at 2 Herald Square for approximately $25.6 million plus assumed mortgage debt of approximately $86.1 million and, (3) the entire leased fee interest in 292 Madison Avenue for approximately $19.2 million plus assumed mortgage debt of approximately $59.1 million. These assets are all leased to third-party operators.

        The following summarizes our allocation of the purchase price of the assets acquired and liabilities assumed upon the purchase of the abovementioned investments from Gramercy (in thousands):

Land	$	501,021
Above market lease value		23,178
Acquired in-place leases		217,312
Assets acquired		741,511
Mortgage notes payable		540,805
Other liabilities, net of other assets		2,091
Liabilities assumed		542,896
		198,615
Investments in unconsolidated joint ventures		(111,751	)
Net assets acquired	$	86,864

        In December 2010, we acquired two retail condominiums in Williamsburg, Brooklyn, for approximately $18.4 million. The retail condominiums are fully leased with rent commencement upon completion of the redevelopment work.

        The following summarizes our allocation of the purchase price of the assets acquired in connection with the purchase of the abovementioned property (in thousands):

Land	$	6,200
Building		10,158
Acquired above market and in-place leases		2,304
Assets acquired		18,662
Below market lease value		277
Liabilities assumed		277
Purchase price allocation	$	18,385

2009 Acquisitions

        During 2009, we acquired the sub-leasehold positions at 420 Lexington Avenue for an aggregate purchase price of approximately $15.9 million.

Pro Forma

        The following table (in millions, except per share amounts) summarizes, on an unaudited pro forma basis, our combined results of operations for the years ended December 31, 2011 and 2010 as though the acquisitions of the 49.9% interest in 521 Fifth Avenue (January 2011) and the acquisition of the 45% interest in 1515 Broadway (April 2011) were completed on January 1, 2010. The supplemental pro forma operating data is not necessarily indicative of what the actual results of operations would have been assuming the transactions had been completed as set forth above, nor do they purport to represent our results of operations for future periods. In addition, the following supplemental pro forma operating data does not present the sale of assets through December 31, 2011. We accounted for the acquisition of assets utilizing the purchase method of accounting.

	December 31, 2011		December 31, 2010
Actual revenues since acquisition	$	106.9	$	—
Actual net income since acquisition	$	21.5	$	—
Pro forma revenues	$	1,292.1	$	1,210.0
Pro forma operating income	$	129.0	$	135.4
Pro forma earnings per common share-basic	$	7.41	$	3.66
Pro forma earnings per common share and common share equivalents-diluted	$	7.37	$	3.65
Pro forma common shares-basic		83,762		78,101
Pro forma common share and common share equivalents-diluted		86,244		79,761

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Significant Accounting Policies

12 Months Ended

Dec. 31, 2011

Significant Accounting Policies

Significant Accounting Policies

2. Significant Accounting Policies

Principles of Consolidation

        The consolidated financial statements include our accounts and those of our subsidiaries, which are wholly-owned or controlled by us. Entities which we do not control through our voting interest and entities which are variable interest entities, but where we are not the primary beneficiary, are accounted for under the equity method or as debt and preferred equity investments. See Notes 5 and 6. All significant intercompany balances and transactions have been eliminated.

        The FASB amended the guidance for determining whether an entity is a variable interest entity, or VIE, and requires the performance of a qualitative rather than a quantitative analysis to determine the primary beneficiary of a VIE. Under this guidance, an entity would be required to consolidate a VIE if it has (i) the power to direct the activities that most significantly impact the entity's economic performance and (ii) the obligation to absorb losses of the VIE or the right to receive benefits from the VIE that could be significant to the VIE.

        A noncontrolling interest in a consolidated subsidiary is defined as the portion of the equity (net assets) in a subsidiary not attributable, directly or indirectly, to a parent. Noncontrolling interests are required to be presented as a separate component of equity in the consolidated balance sheet and modifies the presentation of net income by requiring earnings and other comprehensive income to be attributed to controlling and noncontrolling interests.

        We assess the accounting treatment for each joint venture and debt and preferred equity investment. This assessment includes a review of each joint venture or partnership limited liability company agreement to determine which party has what rights and whether those rights are protective or participating. For all VIE's, we review such agreements in order to determine which party has the power to direct the activities that most significantly impact the entity's economic performance. In situations where we or our partner approves, among other things, the annual budget, receives a detailed monthly reporting package from us, meets on a quarterly basis to review the results of the joint venture, reviews and approves the joint venture's tax return before filing, and approves all leases that cover more than a nominal amount of space relative to the total rentable space at each property, we do not consolidate the joint venture as we consider these to be substantive participation rights that result in shared power of the activities that most significantly impact the performance of our joint venture. Our joint venture agreements also contain certain protective rights such as the requirement of partner approval to sell, finance or refinance the property and the payment of capital expenditures and operating expenditures outside of the approved budget or operating plan.

Investment in Commercial Real Estate Properties

        Rental properties are stated at cost less accumulated depreciation and amortization. Costs directly related to the development or redevelopment of rental properties are capitalized. Ordinary repairs and maintenance are expensed as incurred; major replacements and betterments, which improve or extend the life of the asset, are capitalized and depreciated over their estimated useful lives.

        A property to be disposed of is reported at the lower of its carrying amount or its estimated fair value, less its cost to sell. Once an asset is held for sale, depreciation expense is no longer recorded and the historic results are reclassified as discontinued operations. See Note 4.

        Properties are depreciated using the straight-line method over the estimated useful lives of the assets. The estimated useful lives are as follows:

Category	Term
Building (fee ownership)	40 years
Building improvements	shorter of remaining life of the building or useful life
Building (leasehold interest)	lesser of 40 years or remaining term of the lease
Property under capital lease	remaining lease term
Furniture and fixtures	four to seven years
Tenant improvements	shorter of remaining term of the lease or useful life

        Depreciation expense (including amortization of the capital lease asset) amounted to approximately $254.5 million, $207.1 million and $205.5 million for the years ended December 31, 2011, 2010 and 2009, respectively.

        On a periodic basis, we assess whether there are any indicators that the value of our real estate properties may be impaired or that their carrying value may not be recoverable. A property's value is considered impaired if management's estimate of the aggregate future cash flows (undiscounted and without interest charges for consolidated properties) to be generated by the property are less than the carrying value of the property. To the extent impairment has occurred, the loss will be measured as the excess of the carrying amount of the property over the calculated fair value of the property. In addition, we assess our investments in unconsolidated joint ventures for recoverability, and if it is determined that a loss in value of the investment is other than temporary, we write down the investment to its fair value. We evaluate our equity investments for impairment based on the joint venture's projected discounted cash flows. During 2011, we recorded a $5.8 million impairment charge in connection with the expected sale of one of our equity investments. During 2010, we recorded a $2.8 million impairment charge on one of our equity investments. These charges are included in depreciable real estate reserves in the Consolidated Statements of Income. We do not believe that the value of any of our consolidated properties was impaired at December 31, 2011 and 2010, respectively.

        A variety of costs are incurred in the development and leasing of our properties. After determination is made to capitalize a cost, it is allocated to the specific component of a project that is benefited. Determination of when a development project is substantially complete and capitalization must cease involves a degree of judgment. The costs of land and building under development include specifically identifiable costs. The capitalized costs include pre-construction costs essential to the development of the property, development costs, construction costs, interest costs, real estate taxes, salaries and related costs and other costs incurred during the period of development. We consider a construction project as substantially completed and held available for occupancy upon the completion of tenant improvements, but no later than one year from cessation of major construction activity. We cease capitalization on the portions substantially completed and occupied or held available for occupancy, and capitalize only those costs associated with the portions under construction.

        Results of operations of properties acquired are included in the Consolidated Statements of Income from the date of acquisition.

        On January 1, 2009, we adopted FASB guidance that requires the acquiring entity in a business combination to measure the assets acquired, liabilities assumed (including contingencies) and any noncontrolling interests at their fair values on the acquisition date. The guidance also requires that acquisition- related transaction costs be expensed as incurred, acquired research and development value be capitalized and acquisition-related restructuring costs be capitalized only if they meet certain criteria. Beginning January 1, 2009, we began expensing acquisition-related transaction costs as incurred. These costs are included in transaction related costs on our Consolidated Statements of Income.

        We allocate the purchase price of real estate to land and building and, if determined to be material, intangibles, such as the value of above-, below- and at-market leases and origination costs associated with the in-place leases. We depreciate the amount allocated to building and other intangible assets over their estimated useful lives, which generally range from three to 40 years and from one to 14 years, respectively. The values of the above- and below-market leases are amortized and recorded as either an increase (in the case of below-market leases) or a decrease (in the case of above-market leases) to rental income over the remaining term of the associated lease, which generally range from one to 14 years. The value associated with in-place leases are amortized over the expected term of the associated lease, which generally range from one to 14 years. If a tenant vacates its space prior to the contractual termination of the lease and no rental payments are being made on the lease, any unamortized balance of the related intangible will be written off. The tenant improvements and origination costs are amortized as an expense over the remaining life of the lease (or charged against earnings if the lease is terminated prior to its contractual expiration date). We assess fair value of the leases based on estimated cash flow projections that utilize appropriate discount and capitalization rates and available market information. Estimates of future cash flows are based on a number of factors including the historical operating results, known trends, and market/economic conditions that may affect the property. To the extent acquired leases contain fixed rate renewal options that are below market and determined to be material, we amortized such below market lease value into rental income over the renewal period.

        We recognized an increase of approximately $19.8 million, $22.7 million and $24.2 million in rental revenue for the years ended December 31, 2011, 2010 and 2009, respectively, for the amortization of aggregate below-market leases in excess of above-market leases and a reduction in lease origination costs, resulting from the allocation of the purchase price of the applicable properties. We recognized a reduction in interest expense for the amortization of the above-market rate mortgages assumed of approximately $5.9 million, $2.7 million and $2.7 million for the years ended December 31, 2011, 2010 and 2009, respectively.

        The following summarizes our identified intangible assets (acquired above-market leases and in-place leases) and intangible liabilities (acquired below-market leases) as of December 31, 2011 (in thousands):

	December 31, 2011			December 31, 2010
Identified intangible assets (included in other assets):
Gross amount	$	673,495		$	758,300
Accumulated amortization		(193,442	)		(133,737	)
Net	$	480,053		$	624,563
Identified intangible liabilities (included in deferred revenue):
Gross amount	$	622,029		$	508,339
Accumulated amortization		(290,893	)		(220,417	)
Net	$	331,136		$	287,922

        The estimated annual amortization of acquired below-market leases, net of acquired above-market leases (a component of rental revenue), for each of the five succeeding years is as follows (in thousands):

2012	$	10,767
2013		9,787
2014		7,869
2015		6,404
2016		5,664

        The estimated annual amortization of all other identifiable assets (a component of depreciation and amortization expense) including tenant improvements for each of the five succeeding years is as follows (in thousands):

2012	$	11,818
2013		10,229
2014		7,507
2015		5,821
2016		4,204

Cash and Cash Equivalents

        We consider all highly liquid investments with maturity of three months or less when purchased to be cash equivalents.

Fair Value Measurements

        Fair value is a market-based measurement, not an entity-specific measurement, and should be determined based on the assumptions that market participants would use in pricing the asset or liability. As a basis for considering market participant assumptions in fair value measurements, FASB guidance establishes a fair value hierarchy that distinguishes between market participant assumptions based on market data obtained from sources independent of the reporting entity (observable inputs that are classified within levels one and two of the hierarchy) and the reporting entity's own assumptions about market participant assumptions (unobservable inputs classified within level three of the hierarchy).

        We determined the fair value of our current investments in marketable securities using level one, level two and level three inputs. Additionally, we determined the valuation allowance for loan losses based on level three inputs. See "Note 5—Debt and Preferred Equity Investments."

        The estimated fair values of tangible and intangible assets and liabilities recorded in connection with business combinations are based on level three inputs. We estimate fair values based on cash flow projections utilizing appropriate discount and/or capitalization rates and available market information.

        We determine impairment in real estate investments and debt and preferred equity investments, including intangibles, utilizing cash flow projections that apply estimated revenue and expense growth rates, discount rates and capitalization rates, which are classified as level three inputs.

        We use the following methods and assumptions in estimating fair value disclosures for financial instruments.

• •

  Cash and cash equivalents:  The carrying amount of unrestricted cash and cash equivalents reported in our Consolidated Balance Sheets approximates fair value due to the short maturity of these instruments.

  •

  Debt and Preferred Equity Investments:  The fair value of debt and preferred equity investments is estimated by discounting the future cash flows using current interest rates at which similar loans with the same maturities would be made to borrowers with similar credit ratings. See Note 5 regarding valuation allowances for loan losses.

  •

  Mortgage and other loans payable and other debt:  The fair value of borrowings is estimated by discounting the future cash flows using current interest rates at which similar borrowings could be made by us.

        The methodologies used for valuing financial instruments have been categorized into three broad levels as follows:

•         Level 1—Quoted prices in active markets for identical instruments.

          Level 2—Valuations based principally on other observable market parameters, including

  • •

    Quoted prices in active markets for similar instruments,

    •

    Quoted prices in less active or inactive markets for identical or similar instruments,

    •

    Other observable inputs (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates), and

    •

    Market corroborated inputs (derived principally from or corroborated by observable market data).

•         Level 3—Valuations based significantly on unobservable inputs.

  • •

    Valuations based on third-party indications (broker quotes or counterparty quotes) which were, in turn, based significantly on unobservable inputs or were otherwise not supportable as Level 2 valuations.

    •

    Valuations based on internal models with significant unobservable inputs.

        These levels form a hierarchy. We follow this hierarchy for our financial instruments measured at fair value on a recurring and nonrecurring basis. The classifications are based on the lowest level of input that is significant to the fair value measurement.

Investment in Marketable Securities

        We invest in marketable securities. At the time of purchase, we are required to designate a security as held-to-maturity, available-for-sale, or trading depending on ability and intent. We do not have any securities designated as held-to-maturity or trading at this time. Securities available-for-sale are reported at fair value pursuant to ASC 820-10, with the net unrealized gains or losses reported as a component of accumulated other comprehensive loss. Unrealized losses that are determined to be other-than-temporary are recognized in earnings up to their credit component. Included in accumulated other comprehensive loss at December 31, 2011 and 2010 is approximately $6.9 million and $9.7 million, respectively, in net unrealized gains related to marketable securities.

        During the years ended December 31, 2011 and 2010, we disposed of certain of our marketable securities for aggregate net proceeds of $6.2 million and $2.8 million and realized gains of $4.5 million and $1.9 million, respectively, which are included in gain (loss) on investment in marketable securities on the statements of income. During the years ended December 31, 2011 and 2010, we sold $22.5 million and $41.9 million of Level 3 securities and realized a gain of $0.4 million and a loss of $1.1 million, respectively, which are also included in gain (loss) on investment in marketable securities on the Consolidated Statements of Income.

        The basis on which the cost of the bonds and marketable securities sold was determined was based on the specific identification method.

        At December 31, 2011 and 2010 we held the following marketable securities (in thousands):

	December 31,
	2011		2010
Level 1—Equity marketable securities	$	8,065	$	12,357
Level 2—Commercial mortgage-backed securities		13,369		17,445
Level 3—Rake bonds		3,889		4,250
Total marketable securities available-for-sale	$	25,323	$	34,052

        The cost basis of the Level 3 securities was $3.9 million and $4.3 million at December 31, 2011 and 2010, respectively. The Level 3 securities mature at various times through 2014.

Investments in Unconsolidated Joint Ventures

        We account for our investments in unconsolidated joint ventures under the equity method of accounting in cases where we exercise significant influence over, but do not control, these entities and are not considered to be the primary beneficiary. We consolidate those joint ventures that we control or which are VIEs and where we are considered to be the primary beneficiary. In all these joint ventures, the rights of the joint venture partner are both protective as well as participating. Unless we are determined to be the primary beneficiary in a VIE, these participating rights preclude us from consolidating these non-VIE entities. These investments are recorded initially at cost, as investments in unconsolidated joint ventures, and subsequently adjusted for equity in net income (loss) and cash contributions and distributions. Any difference between the carrying amount of these investments on our balance sheet and the underlying equity in net assets is amortized as an adjustment to equity in net income (loss) of unconsolidated joint ventures over the lesser of the joint venture term or 10 years. Equity income (loss) from unconsolidated joint ventures is allocated based on our ownership or economic interest in each joint venture. When a capital event (as defined in each joint venture agreement) such as a refinancing occurs, if return thresholds are met, future equity income will be allocated at our increased economic interest. We recognize incentive income from unconsolidated real estate joint ventures as income to the extent it is earned and not subject to a clawback feature. Distributions we receive from unconsolidated real estate joint ventures in excess of our basis in the investment are recorded as offsets to our investment balance if we remain liable for future obligations of the joint venture or may otherwise be committed to provide future additional financial support. None of the joint venture debt is recourse to us, except for $200.0 million which we guarantee at one joint venture and performance guarantees under a master lease at another joint venture. See Note 6.

Restricted Cash

        Restricted cash primarily consists of security deposits held on behalf of our tenants, interest reserves, as well as capital improvement and real estate tax escrows required under certain loan agreements.

Deferred Lease Costs

        Deferred lease costs consist of fees and direct costs incurred to initiate and renew operating leases and are amortized on a straight-line basis over the related lease term. Certain of our employees provide leasing services to the wholly-owned properties. A portion of their compensation, approximating $9.6 million, $8.6 million and $7.9 million for the years ended December 31, 2011, 2010 and 2009, respectively, was capitalized and is amortized over an estimated average lease term of seven years.

Deferred Financing Costs

        Deferred financing costs represent commitment fees, legal, title and other third party costs associated with obtaining commitments for financing which result in a closing of such financing. These costs are amortized over the terms of the respective agreements. Unamortized deferred financing costs are expensed when the associated debt is refinanced or repaid before maturity. Costs incurred in seeking financing transactions, which do not close, are expensed in the period in which it is determined that the financing will not close.

Revenue Recognition

        Rental revenue is recognized on a straight-line basis over the term of the lease. Rental revenue recognition commences when the tenant takes possession or controls the physical use of the leased space. In order for the tenant to take possession, the leased space must be substantially ready for its intended use. To determine whether the leased space is substantially ready for its intended use, management evaluates whether we are or the tenant is the owner of tenant improvements for accounting purposes. When management concludes that we are the owner of tenant improvements, rental revenue recognition begins when the tenant takes possession of the finished space, which is when such tenant improvements are substantially complete. In certain instances, when management concludes that we are not the owner (the tenant is the owner) of tenant improvements, rental revenue recognition begins when the tenant takes possession of or controls the space. When management concludes that we are the owner of tenant improvements for accounting purposes, management records the cost to construct the tenant improvements as a capital asset. In addition, management records the cost of certain tenant improvements paid for or reimbursed by tenants as capital assets when management concludes that we are the owner of such tenant improvements. For these tenant improvements, management records the amount funded or reimbursed by tenants as deferred revenue, which is amortized on a straight-line basis as additional rental revenue over the term of the related lease. When management concludes that the tenant is the owner of tenant improvements for accounting purposes, management records our contribution towards those improvements as a lease incentive, which is included in deferred leasing costs on our consolidated balance sheets and amortized as a reduction to rental revenue on a straight-line basis over the term of the lease. The excess of rents recognized over amounts contractually due pursuant to the underlying leases are included in deferred rents receivable on the accompanying balance sheets. We establish, on a current basis, an allowance for future potential tenant credit losses, which may occur against this account. The balance reflected on the balance sheet is net of such allowance.

        In addition to base rent, our tenants also generally will pay their pro rata share of increases in real estate taxes and operating expenses for the building over a base year. In some leases, in lieu of paying additional rent based upon increases in building operating expenses, the tenant will pay additional rent based upon increases in the wage rate paid to porters over the porters' wage rate in effect during a base year or increases in the consumer price index over the index value in effect during a base year. In addition, many of our leases contain fixed percentage increases over the base rent to cover escalations.

        Electricity is most often supplied by the landlord either on a sub-metered basis, or rent inclusion basis (i.e., a fixed fee is included in the rent for electricity, which amount may increase based upon increases in electricity rates or increases in electrical usage by the tenant). Base building services other than electricity (such as heat, air conditioning and freight elevator service during business hours, and base building cleaning) typically are provided at no additional cost, with the tenant paying additional rent only for services which exceed base building services or for services which are provided outside normal business hours.

        These escalations are based on actual expenses incurred in the prior calendar year. If the expenses in the current year are different from those in the prior year, then during the current year, the escalations will be adjusted to reflect the actual expenses for the current year.

        We record a gain on sale of real estate when title is conveyed to the buyer, subject to the buyer's financial commitment being sufficient to provide economic substance to the sale and we have no substantial economic involvement with the buyer.

        Interest income on debt and preferred equity investments is recognized over the life of the investment using the effective interest method and recognized on the accrual basis. Fees received in connection with loan commitments are deferred until the loan is funded and are then recognized over the term of the loan as an adjustment to yield. Anticipated exit fees, whose collection is expected, are also recognized over the term of the loan as an adjustment to yield. Fees on commitments that expire unused are recognized at expiration.

        Income recognition is generally suspended for debt and preferred equity investments at the earlier of the date at which payments become 90 days past due or when, in the opinion of management, a full recovery of income and principal becomes doubtful. Income recognition is resumed when the loan becomes contractually current and performance is demonstrated to be resumed. Interest is recorded as income on impaired loans only to the extent cash is received. Several of the debt and preferred equity investments provide for accrual of interest at specified rates, which differ from current payment terms. Interest is recognized on such loans at the accrual rate subject to management's determination that accrued interest and outstanding principal are ultimately collectible, based on the underlying collateral and operations of the borrower. If management cannot make this determination, interest income above the current pay rate is recognized only upon actual receipt.

        If we purchase a debt or preferred equity investment at a discount, intend to hold it until maturity and expect to recover the full value of the investment, we accrete the discount into income as an adjustment to yield over the term of the investment. If we purchase a debt or preferred equity investment at a discount with the intention of foreclosing on the collateral, we do not accrete the discount.

        Asset management fees are recognized on a straight-line basis over the term of the asset management agreement.

Allowance for Doubtful Accounts

        We maintain an allowance for doubtful accounts for estimated losses resulting from the inability of our tenants to make required payments. If the financial condition of a specific tenant were to deteriorate, resulting in an impairment of its ability to make payments, additional allowances may be required.

Reserve for Possible Credit Losses

        The expense for possible credit losses in connection with debt and preferred equity investments is the charge to earnings to increase the allowance for possible credit losses to the level that we estimate to be adequate, based on Level 3 data, considering delinquencies, loss experience and collateral quality. Other factors considered relate to geographic trends and product diversification, the size of the portfolio and current economic conditions. Based upon these factors, we establish the provision for possible credit losses on each individual investment. When it is probable that we will be unable to collect all amounts contractually due, the investment is considered impaired.

        Where impairment is indicated on an investment that is held to maturity, a valuation allowance is measured based upon the excess of the recorded investment amount over the net fair value of the collateral. Any deficiency between the carrying amount of an asset and the calculated value of the collateral is charged to expense. The write off of the reserve balance is called a charge off. We recorded approximately $10.9 million, $19.8 million and $38.4 million in loan loss reserves and charge offs during the years ended December 31, 2011, 2010 and 2009, respectively, on investments being held to maturity, and none, $1.0 million and $69.1 million against our held for sale investment during the years ended December 31, 2011, 2010 and 2009, respectively. We also recorded approximately $4.4 million and $3.7 million in recoveries during the years ended December 31, 2011 and 2010, respectively, in connection with the sale of investments.

        Debt and preferred equity investments held for sale are carried at the lower of cost or fair market value using available market information obtained through consultation with dealers or other originators of such investments as well as discounted cash flow models based on Level 3 data pursuant to ASC 820-10. As circumstances change, management may conclude not to sell an investment designated as held for sale. In such situations, the investment will be reclassified at its net carrying value to debt and preferred equity investments held to maturity. For these reclassified investments, the difference between the current carrying value and the expected cash to be collected at maturity will be accreted into income over the remaining term of the investment.

Rent Expense

        Rent expense is recognized on a straight-line basis over the initial term of the lease. The excess of the rent expense recognized over the amounts contractually due pursuant to the underlying lease is included in the deferred land lease payable in the accompanying balance sheets.

Income Taxes

        We are taxed as a REIT under Section 856(c) of the Code. As a REIT, we generally are not subject to Federal income tax. To maintain our qualification as a REIT, we must distribute at least 90% of our REIT taxable income to our stockholders and meet certain other requirements. If we fail to qualify as a REIT in any taxable year, we will be subject to Federal income tax on our taxable income at regular corporate rates. We may also be subject to certain state, local and franchise taxes. Under certain circumstances, Federal income and excise taxes may be due on our undistributed taxable income.

        Pursuant to amendments to the Code that became effective January 1, 2001, we have elected, and may in the future, elect to treat certain of our existing or newly created corporate subsidiaries as taxable REIT subsidiaries, or a TRS. In general, a TRS of ours may perform non-customary services for our tenants, hold assets that we cannot hold directly and generally may engage in any real estate or non-real estate related business. Our TRSs' generate income, resulting in Federal income tax liability for these entities. Our TRSs' recorded approximately none, $0.9 million and $1.0 million in Federal, state and local tax (benefit)/expense in 2011, 2010 and 2009 and made estimated tax payments of $0.1 million, $1.0 million and $0.8 million, respectively.

        We follow a two-step approach for evaluating uncertain tax positions. Recognition (step one) occurs when an enterprise concludes that a tax position, based solely on its technical merits, is more-likely-than-not to be sustained upon examination. Measurement (step two) determines the amount of benefit that is more-likely-than-not to be realized upon settlement. Derecognition of a tax position that was previously recognized would occur when a company subsequently determines that a tax position no longer meets the more-likely-than-not threshold of being sustained. The use of a valuation allowance as a substitute for derecognition of tax positions is prohibited.

Underwriting Commissions and Costs

        Underwriting commissions and costs incurred in connection with our stock offerings are reflected as a reduction of additional paid-in-capital.

Exchangeable Debt Instruments

        The initial proceeds from exchangeable debt that may be settled in cash, including partial cash settlements, must be bifurcated between a liability component and an equity component associated with the embedded conversion option. The objective of the accounting guidance is to require the liability and equity components of exchangeable debt to be separately accounted for in a manner such that the interest expense on the exchangeable debt is not recorded at the stated rate of interest but rather at an effective rate that reflects the issuer's conventional debt borrowing rate at the date of issuance. We calculate the liability component of exchangeable debt based on the present value of the contractual cash flows discounted at our comparable market conventional debt borrowing rate at the date of issuance. The difference between the principal amount and the fair value of the liability component is reported as a discount on the exchangeable debt that is accreted as additional interest expense from the issuance date through the contractual maturity date using the effective interest method. A portion of this additional interest expense may be capitalized to the development and redevelopment balances qualifying for interest capitalization each period. The liability component of the exchangeable debt is reported net of discounts on our consolidated balance sheets. We calculate the equity component of exchangeable debt based on the difference between the initial proceeds received from the issuance of the exchangeable debt and the fair value of the liability component at the issuance date. The equity component is included in additional paid-in-capital, net of issuance costs, on our consolidated balance sheets. We allocate issuance costs for exchangeable debt between the liability and the equity components based on their relative values.

Stock-Based Employee Compensation Plans

        We have a stock-based employee compensation plan, described more fully in Note 13.

        The Black-Scholes option-pricing model was developed for use in estimating the fair value of traded options, which have no vesting restrictions and are fully transferable. In addition, option valuation models require the input of highly subjective assumptions including the expected stock price volatility. Because our plan has characteristics significantly different from those of traded options and because changes in the subjective input assumptions can materially affect the fair value estimate, in our opinion, the existing models do not necessarily provide a reliable single measure of the fair value of our employee stock options.

        Compensation cost for stock options, if any, is recognized on a straight line basis over the vesting period of the award. Our policy is to grant options with an exercise price equal to the quoted closing market price of our stock on the grant date. Awards of stock or restricted stock are expensed as compensation over the benefit period based on the fair value of the stock on the grant date.

        For share-based awards with a performance or market measure, we recognize compensation cost over the requisite service period, using the accelerated attribution expense method. The requisite service period begins on the date our Compensation Committee authorizes the award and adopts any relevant performance measures. For programs with market measures, the total estimated compensation cost is based on the fair value of the award at the applicable measurement date estimated using a binomial model. For share-based awards for which there is no pre-established performance measure, we recognize compensation cost over the service vesting period, which represents the requisite service period, on a straight-line basis. In accordance with the provisions of our share-based incentive compensation plans, we accept the return of shares of our common stock, at the current quoted market price, from certain key employee to satisfy minimum statutory tax-withholding requirements related to shares that vested during the period.

        Awards can also be made in the form of a separate series of units of limited partnership interest in our Operating Partnership called long-term incentive plan (LTIP) units. LTIP units, which can be granted either as free-standing awards or in tandem with other awards under our stock incentive plan, are valued by reference to the value of our common stock at the time of grant, and are subject to such conditions and restrictions as our compensation committee may determine, including continued employment or service, computation of financial metrics and/or achievement of pre-established performance goals and objectives.

Derivative Instruments

        In the normal course of business, we use a variety of derivative instruments to manage, or hedge, interest rate risk. We require that hedging derivative instruments are effective in reducing the interest rate risk exposure that they are designated to hedge. This effectiveness is essential for qualifying for hedge accounting. Some derivative instruments are associated with an anticipated transaction. In those cases, hedge effectiveness criteria also require that it be probable that the underlying transaction occurs. Instruments that meet these hedging criteria are formally designated as hedges at the inception of the derivative contract.

        To determine the fair values of derivative instruments, we use a variety of methods and assumptions that are based on market conditions and risks existing at each balance sheet date. For the majority of financial instruments including most derivatives, long-term investments and long-term debt, standard market conventions and techniques such as discounted cash flow analysis, option pricing models, replacement cost, and termination cost are used to determine fair value. All methods of assessing fair value result in a general approximation of value, and such value may never actually be realized.

        In the normal course of business, we are exposed to the effect of interest rate changes and limit these risks by following established risk management policies and procedures including the use of derivatives. To address exposure to interest rates, derivatives are used primarily to fix the rate on debt based on floating-rate indices and manage the cost of borrowing obligations.

        We use a variety of commonly used derivative products that are considered plain vanilla derivatives. These derivatives typically include interest rate swaps, caps, collars and floors. We expressly prohibit the use of unconventional derivative instruments and using derivative instruments for trading or speculative purposes. Further, we have a policy of only entering into contracts with major financial institutions based upon their credit ratings and other factors.

        We may employ swaps, forwards or purchased options to hedge qualifying forecasted transactions. Gains and losses related to these transactions are deferred and recognized in net income as interest expense in the same period or periods that the underlying transaction occurs, expires or is otherwise terminated.

        Hedges that are reported at fair value and presented on the balance sheet could be characterized as cash flow hedges or fair value hedges. Interest rate caps and collars are examples of cash flow hedges. Cash flow hedges address the risk associated with future cash flows of interest payments. For all hedges held by us and which were deemed to be fully effective in meeting the hedging objectives established by our corporate policy governing interest rate risk management, no net gains or losses were reported in earnings. The changes in fair value of hedge instruments are reflected in accumulated other comprehensive income. For derivative instruments not designated as hedging instruments, the gain or loss, resulting from the change in the estimated fair value of the derivative instruments, is recognized in current earnings during the period of change.

Earnings per Share

        We present both basic and diluted earnings per share, or EPS. Basic EPS excludes dilution and is computed by dividing net income attributable to common stockholders by the weighted average number of common shares outstanding during the period. Basic EPS includes participating securities, consisting of unvested restricted stock that receive nonforfeitable dividends similar to shares of common stock. Diluted EPS reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock, where such exercise or conversion would result in a lower EPS amount. This also includes units of limited partnership interest. The dilutive effect of the outstanding nonvested shares of common stock ("nonvested shares") and restricted stock units ("RSUs") that have not yet been granted but are contingently issuable under the share-based compensation programs is reflected in the weighted average diluted shares calculation by application of the treasury stock method at the beginning of the quarterly period in which all necessary conditions have been satisfied. The dilutive effect of stock options is reflected in the weighted average diluted outstanding shares calculation by application of the treasury stock method. There is no dilutive effect for the exchangeable senior debentures as the conversion premium will be paid in cash.

Use of Estimates

        The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates.

Concentrations of Credit Risk

        Financial instruments that potentially subject us to concentrations of credit risk consist primarily of cash investments, debt and preferred equity investments and accounts receivable. We place our cash investments in excess of insured amounts with high quality financial institutions. The collateral securing our debt and preferred equity investments is primarily located in the New York Metropolitan area. See Note 5. We perform ongoing credit evaluations of our tenants and require most tenants to provide security deposits or letters of credit. Though these security deposits and letters of credit are insufficient to meet the total value of a tenant's lease obligation, they are a measure of good faith and a source of funds to offset the economic costs associated with lost rent and the costs associated with re-tenanting the space. Although the properties in our real estate portfolio are primarily located in Manhattan, we also have properties located in Brooklyn, Queens, Long Island, Westchester County, Connecticut and New Jersey. The tenants located in our buildings operate in various industries. Other than one tenant who accounts for approximately 7.2% of our share of annualized cash rent, no other tenant in our portfolio accounted for more than 6.9% of our annualized cash rent, including our share of joint venture annualized rent, at December 31, 2011. Approximately 8%, 7%, 7% and 10% of our annualized cash rent for consolidated properties was attributable to 919 Third Avenue, 1185 Avenue of the Americas, One Madison Avenue and 1515 Broadway, respectively, for the year ended December 31, 2011. Approximately 10%, 9%, 7%, 7% and 6% of our annualized rent for consolidated properties was attributable to 919 Third Avenue, 1185 Avenue of the Americas, One Madison Avenue, 420 Lexington Avenue and 485 Lexington Avenue, respectively, for the year ended December 31, 2010. Approximately 10%, 9%, 8%, 8%, 6% and 6% of our annualized rent for consolidated properties was attributable to 919 Third Avenue, 1185 Avenue of the Americas, One Madison Avenue, 420 Lexington Avenue, 220 East 42^nd Street and 485 Lexington Avenue, respectively, for the year ended December 31, 2009. In addition, two debt and preferred equity investments accounted for more than 10.0% of the income earned on debt and preferred equity investments during 2011. As of December 31, 2011, approximately 75.0% of our workforce is covered by three collective bargaining agreements. Approximately 76.4% of our workforce which services substantially all of our properties is covered by a collective bargaining agreement which expires in 2015. See Note 15.

Reclassification

        Certain prior year balances have been reclassified to conform to our current year presentation primarily in order to eliminate discontinued operations from income from continuing operations.

Accounting Standards Updates

        In January 2010, the FASB issued updated guidance on fair value measurements and disclosures, which requires disclosure of details of significant asset or liability transfers in and out of Level 1 and Level 2 measurements within the fair value hierarchy and inclusion of gross purchases, sales, issuances, and settlements in the rollforward of assets and liabilities valued using Level 3 inputs within the fair value hierarchy. The guidance also clarifies and expands existing disclosure requirements related to the disaggregation of fair value disclosures and inputs used in arriving at fair values for assets and liabilities using Level 2 and Level 3 inputs within the fair value hierarchy. These disclosure requirements were effective for interim and annual reporting periods beginning after December 15, 2009. Adoption of this guidance on January 1, 2010, excluding the Level 3 rollforward, resulted in additional disclosures in our consolidated financial statements. The gross presentation of the Level 3 rollforward is required for interim and annual reporting periods beginning after December 15, 2010. Adoption of this guidance did not have a material impact on our consolidated financial statements.

        In July 2010, the FASB issued updated guidance on disclosures about the credit quality of financing receivables and the allowance for credit losses which will require a greater level of information disclosed about the credit quality of loans and allowance for loan losses, as well as additional information related to credit quality indicators, past due information, and information related to loans modified in trouble debt restructuring. The guidance related to disclosures of financing receivables as of the end of a reporting period is required to be adopted for interim and annual reporting periods ending on or after December 15, 2010. The financing receivables disclosures related to the activity that occurs during a reporting period are required to be adopted for interim and annual reporting periods beginning on or after December 15, 2010. Adoption of the remaining guidance resulted in additional disclosures in our consolidated financial statements.

        In December 2010, the FASB issued guidance on the disclosure of supplementary pro forma information for business combinations. Effective for periods beginning after December 15, 2010, the guidance specifies that if a public entity enters into business combinations that are material on an individual or aggregate basis and presents comparative financial statements, the entity must present pro forma revenue and earnings of the combined entity as though the business combination(s) that occurred during the current year had occurred as of the beginning of the comparable prior annual reporting period only. Adoption of this guidance did not have a material impact on our consolidated financial statements.

        In April 2011, the FASB issued guidance which clarifies when creditors should classify loan modifications as troubled debt restructurings and provides examples and factors to be considered. Loan modifications which are considered troubled debt restructurings could result in additional disclosure requirements and could impact the related provision for loan losses. This guidance is effective for the first interim or annual period beginning after June 15, 2011, with retrospective application to the beginning of the year. Adoption of this guidance did not have a material impact on our consolidated financial statements. The adoption of this guidance will impact how we account for loan modifications, and may result in an increase in the loan modifications we classify as troubled debt restructurings.

        In May 2011, the FASB issued updated guidance on fair value measurement which amends U.S. GAAP to conform to IFRS measurement and disclosure requirements. The amendments change the wording used to describe the requirements in U.S. GAAP for measuring fair value, changes certain fair value measurement principles and enhances disclosure requirements. This guidance is effective as of the first quarter of 2012, applied prospectively, and its adoption is not expected to have a material effect on our consolidated financial statements.

        In June 2011, the FASB issued guidance to increase the prominence of other comprehensive income in financial statements. The standard gives businesses two options for presenting other comprehensive income (OCI), which until now has typically been included within the statement of shareholder's equity. An OCI statement can be included with the statement of income, and together the two will make a statement of total comprehensive income. Alternatively, businesses can have an OCI statement separate from the statement of income, but the two statements will have to appear consecutively within a financial report. These requirements related to the presentation of OCI are effective for interim and annual reporting periods beginning after December 15, 2011. In December 2011, the FASB temporarily delayed those requirements that relate to the presentation of reclassification adjustments out of accumulated other comprehensive income. During the deferral period, the FASB plans to re-evaluate the requirement, with a final decision expected in 2012. Adoption of this guidance will not have a material impact on our consolidated financial statements.

        In September 2011, the FASB issued guidance that requires employers to provide additional qualitative and quantitative disclosures for multi-employer pension plans and multi-employer other post-retirement benefit plans. The guidance is effective for annual periods for fiscal years ending after December 15, 2011. See Note 15 for additional disclosure required by this guidance.

        In December 2011, the FASB issued guidance that concluded when a parent ceases to have a controlling financial interest in a subsidiary that is in substance real estate as a result of default on the subsidiary's nonrecourse debt, the reporting entity must apply the accounting guidance for sales of real estate to determine whether it should derecognize the in substance real estate. The reporting entity is precluded from derecognizing the real estate until legal ownership has been transferred to the lender to satisfy the debt. The guidance is effective for calendar year-end public and nonpublic companies in 2013 and is to be applied on a prospective basis. Early adoption of the guidance is permitted. Adoption of this guidance will not have a material impact on our consolidated financial statements.

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Noncontrolling Interests in Operating Partnership

12 Months Ended

Dec. 31, 2011

Noncontrolling Interests in Operating Partnership

Noncontrolling Interests in Operating Partnership

14. Noncontrolling Interests in Operating Partnership

        The common unit holders represent the noncontrolling interest ownership in our Operating Partnership. As of December 31, 2011 and 2010, the noncontrolling interest common unit holders owned 3.12% (2,764,737 units) and 1.57% (1,249,274 units) of the Operating Partnership, respectively. At December 31, 2011, 2,764,737 shares of our common stock were reserved for the redemption of units of limited partnership interest in our Operating Partnership.

        We record the carrying value of the noncontrolling interests in the Operating Partnership at fair market value based on the closing stock price of our common stock at the end of the reporting period. The carrying value of such noncontrolling interests will not be adjusted below its cost basis.

        We have included a rollforward analysis of the activity relating to the noncontrolling interests in the Operating Partnership below (in thousands):

	Year Ended December 31, 2011			Year Ended December 31, 2010
Balance at beginning of period	$	84,338		$	84,618
Distributions		(1,264	)		(511	)
Issuance of units		60,443			2,874
Redemption of units		(865	)		(25,104	)
Net income		14,629			4,574
Accumulated other comprehensive income (loss) allocation		(291	)		(1,061	)
Fair value adjustment		38,040			18,948
Balance at end of period	$	195,030		$	84,338

        In November 2011, as part of an acquisition, the Operating Partnership issued 80,000 units of our 6.0% Series H preferred units, or the Series H preferred units, with a liquidation preference of $25.00 per unit. The Series H preferred unitholders receive annual dividends of $1.50 per unit paid on a quarterly basis and dividends are cumulative, subject to certain provisions. The Series H preferred units can be redeemed at any time at par for cash at our option or the option of the unitholder.

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Fair Value of Financial Instruments

12 Months Ended

Dec. 31, 2011

Fair Value of Financial Instruments

Fair Value of Financial Instruments

10. Fair Value of Financial Instruments

        The following disclosures of estimated fair value were determined by management, using available market information and appropriate valuation methodologies as discussed in Note 2. Considerable judgment is necessary to interpret market data and develop estimated fair value. Accordingly, the estimates presented herein are not necessarily indicative of the amounts we could realize on disposition of the financial instruments. The use of different market assumptions and/or estimation methodologies may have a material effect on the estimated fair value amounts.

        Cash and cash equivalents, accounts receivable and accounts payable balances reasonably approximate their fair values due to the short maturities of these items. Mortgages and other loans payable, junior subordinate deferrable interest debentures and the senior unsecured notes had an estimated fair value based on discounted cash flow models, based on Level 3 inputs, of approximately $5.2 billion, compared to the book value of the related fixed rate debt of approximately $4.8 billion at December 31, 2011. Our floating rate debt, inclusive of our 2011 revolving credit facility, had an estimated fair value based on discounted cash flow models, based on Level 3 inputs, of approximately $1.2 billion, compared to the book value of approximately $1.3 billion at December 31, 2011. Our debt and preferred equity investments had an estimated fair value ranging between $838.1 million and $936.6 million, compared to the book value of approximately $985.9 million at December 31, 2011.

        Disclosure about fair value of financial instruments is based on pertinent information available to us as of December 31, 2011. Although we are not aware of any factors that would significantly affect the reasonable fair value amounts, such amounts have not been comprehensively revalued for purposes of these financial statements since that date and current estimates of fair value may differ significantly from the amounts presented herein.

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Commitments and Contingencies (Details) (USD $) In Millions, unless otherwise specified	12 Months Ended			10 Months Ended	12 Months Ended
	Dec. 31, 2011 Portfolio	Dec. 31, 2011 Belmont	Dec. 31, 2010 Belmont	Oct. 31, 2011 Property and rental value coverage	Dec. 31, 2011 Property and rental value coverage
Commitments and Contingencies
Employment agreements with certain executives, minimum cash-based compensation for next fiscal year	$ 4.5
Employment agreements with certain executives, grant date value of deferred compensation awards	1.0
Commitments and Contingencies
Number of property insurance portfolios for which all-risk property and rental value coverage is maintained	2
Blanket limit per occurrence maintained under first property portfolio					750.0
Limit per occurrence maintained under second property portfolio					700.0
Limit per occurrence and in aggregate per location under liability policies				201.0
Loss reserves		$ 6.4	$ 6.1

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Investment in Unconsolidated Joint Ventures

12 Months Ended

Dec. 31, 2011

Investment in Unconsolidated Joint Ventures

Investment in Unconsolidated Joint Ventures

6. Investment in Unconsolidated Joint Ventures

        We have investments in several real estate joint ventures with various partners, including The City Investment Fund, or CIF, SITQ Immobilier, a subsidiary of Caisse de depot et placement du Quebec, or SITQ, Canada Pension Plan Investment Board, or CPPIB, a fund managed by JP Morgan Investment Management, or JP Morgan, Prudential Real Estate Investors, or Prudential, Onyx Equities, or Onyx, The Witkoff Group, or Witkoff, Credit Suisse Securities (USA) LLC, or Credit Suisse, Jeff Sutton, or Sutton, Harel Insurance and Finance, or Harel, Louis Cappelli, or Cappelli, The Moinian Group, or Moinian, Vornado Realty Trust (NYSE: VNO), or Vornado, as well as private investors. All the investments below are voting interest entities, except for 3 Columbus Circle and 180/182 Broadway which are VIEs in which we are not the primary beneficiary. Our net equity investment in these two VIEs was $161.9 million and $12.0 million at December 31, 2011 and 2010, respectively. As we do not control these joint ventures, we account for them under the equity method of accounting. We assess the accounting treatment for each joint venture on a stand-alone basis. This includes a review of each joint venture or partnership LLC agreement to determine which party has what rights and whether those rights are protective or participating. In situations where we or our partner are involved in some or all of the following: approving the annual budget, receiving a detailed monthly reporting package from us, meeting with us on a quarterly basis to review the results of the joint venture, reviewing and approving the joint venture's tax return before filing, and approving all leases that cover more than a nominal amount of space relative to the total rentable space at each property, we do not consolidate the joint venture as we consider these to be substantive participation rights. Our joint venture agreements also contain certain protective rights such as the requirement of partner approval to sell, finance or refinance the property and the payment of capital expenditures and operating expenditures outside of the approved budget or operating plan.

        The table below provides general information on each of our joint ventures as of December 31, 2011 (in thousands):

Property	Partner	Ownership Interest			Economic Interest			Square Feet		Acquired		Acquisition Price(1)
100 Park Avenue	Prudential		49.90	%		49.90	%		834		02/00	$	95,800
379 West Broadway	Sutton		45.00	%		45.00	%		62		12/05	$	19,750
21 West 34th Street	Sutton		50.00	%		50.00	%		30		07/05	$	22,400
800 Third Avenue	Private Investors		42.95	%		42.95	%		526		12/06	$	285,000
One Court Square(10)	JP Morgan		30.00	%		30.00	%		1,402		01/07	$	533,500
1604-1610 Broadway	Onyx/Sutton		45.00	%		63.00	%		30		11/05	$	4,400
1745 Broadway	Witkoff/SITQ/Lehman Bros.		32.26	%		32.26	%		674		04/07	$	520,000
1 and 2 Jericho Plaza	Onyx/Credit Suisse		20.26	%		20.26	%		640		04/07	$	210,000
16 Court Street	CIF		35.00	%		35.00	%		318		07/07	$	107,500
The Meadows(2)	Onyx		50.00	%		50.00	%		582		09/07	$	111,500
388 and 390 Greenwich Street(3)	SITQ		50.60	%		50.60	%		2,600		12/07	$	1,575,000
27-29 West 34th Street	Sutton		50.00	%		50.00	%		41		01/06	$	30,000
717 Fifth Avenue	Sutton/Nakash		32.75	%		32.75	%		120		09/06	$	251,900
141 Fifth Avenue(4)	Sutton/Rapport		50.00	%		50.00	%		22		09/05	$	13,250
180/182 Broadway(4)(5)	Harel/Sutton		25.50	%		25.50	%		71		02/08	$	43,600
600 Lexington Avenue	CPPIB		55.00	%		55.00	%		304		05/10	$	193,000
11 West 34th Street(6)	Private Investor/Sutton		30.00	%		30.00	%		17		12/10	$	10,800
7 Renaissance	Cappelli		50.00	%		50.00	%		37		12/10	$	4,000
3 Columbus Circle(7)	Moinian		48.90	%		48.90	%		769		01/11	$	500,000
280 Park Avenue(8)	Vornado		50.00	%		50.00	%		1,237		03/11	$	400,000
1552-1560 Broadway(9)	Sutton		50.00	%		50.00	%		49		08/11	$	136,550
747 Madison Avenue	Harel/Sutton		33.33	%		33.33	%		10		09/11	$	66,250

⁽¹⁾

Represents the actual or implied purchase price for the joint venture.

⁽²⁾

We, along with Onyx, acquired the remaining 50% interest on a pro-rata basis in September 2009. We recorded a $2.8 million impairment charge in 2010, included in depreciable real estate reserves, against this joint venture investment.

⁽³⁾

The property is subject to a 13-year triple-net lease arrangement with a single tenant. The lease commenced in 2007.

⁽⁴⁾

The deconsolidation of these joint ventures in 2010 resulted in an adjustment to retained earnings of approximately $3.0 million and to the noncontrolling interests in other partnerships of approximately $9.5 million.

⁽⁵⁾

In December 2010, the Company's 180-182 Broadway joint venture with Jeff Sutton announced an agreement with Pace University to convey a long-term ground lease condominium interest to Pace University for 20 floors of student housing. The joint venture also admitted Harel, which contributed $28.1 million to the joint venture, for a 49 percent partnership interest. In August 2011, the joint venture sold the property located at 63 Nassau Street for $2.8 million.

⁽⁶⁾

In December 2010, the Company's $12.0 million first mortgage collateralized by 11 West 34^th Street was repaid at par, resulting in the Company's recognition of additional income of approximately $1.1 million. Simultaneous with the repayment, the joint venture was recapitalized with the Company having a 30 percent interest. The property is subject to a long-term net lease arrangement.

⁽⁷⁾

We issued 306,296 operating partnership units in connection with this investment. We have committed to fund an additional $47.5 million to the joint venture, of which $34.5 million has been funded as of December 31, 2011. This liability is recorded in accrued interest payable and other liabilities. In addition, we made a $125.0 million bridge loan to this joint venture which was bearing interest at a rate of 7.5%. This loan was repaid when the joint venture refinanced its debt in April 2011.

⁽⁸⁾

In March 2011, we contributed our debt investment with a carrying value of $286.6 million to a newly formed joint venture in which we hold a 50% interest. We realized $38.7 million of additional income upon the contribution. This income is included in preferred equity and investment income. The joint venture paid us approximately $111.3 million and also assumed $30.0 million of related floating rate financing which matures in June 2016. See Note 5. In May 2011, this joint venture took control of the underlying property as part of a recapitalization transaction which valued the investment at approximately $1.1 billion. We hold an effective 49.5% ownership interest in the joint venture.

⁽⁹⁾

In connection with this acquisition, the joint venture also acquired a long-term leasehold interest in the retail space and certain other spaces at 1560 Broadway, which is adjacent to 1552 Broadway. The purchase price relates only to the purchase of the 1552 Broadway interest which comprises 13,045 square feet.

⁽¹⁰⁾

This property is under contract for sale for $475.0 million. The transaction, which is subject to the assumption of the joint venture's debt, is expected to close during the first quarter of 2012.

        In November 2011, we acquired the remaining 50% interest in the joint venture which held an investment in a debt position on the property located at 450 West 33^rd Street. As we own 100% of this investment, we have reclassified it and recorded it as a debt investment. See Note 5.

        In August 2011, we sold our 10% interest in the joint venture that held 1551-1555 Broadway for approximately $9.7 million. We realized a gain of $4.0 million on the sale, which is net of a $2.5 million employee compensation award, accrued in connection with the realization of this investment gain as a bonus to certain employees that were instrumental in realizing the gain on this sale.

        In May 2010, Green Hill Acquisition LLC, our wholly owned subsidiary, sold its 45% beneficial interest in the property known as 1221 Avenue of the Americas, located in Manhattan, to a wholly owned subsidiary of CPPIB, for total consideration of $577.4 million, of which approximately $95.9 million represented payment for existing reserves and the assumption of our pro-rata share of in-place financing. The sale generated proceeds to us of approximately $500.9 million. We recognized a gain of approximately $126.8 million on the sale of our interest, which is net of a $4.5 million employee compensation award, accrued in connection with the realization of this investment gain as a bonus to certain employees that were instrumental in realizing the gain on this sale.

        In April 2009, we sold our remaining 50 percent partnership interest in 55 Corporate Drive, New Jersey (pad IV) to Mack-Cali Realty Corporation (NYSE: CLI). We received total proceeds of $4.5 million and recognized a gain on sale of approximately $4.0 million. In connection with this transaction, we also sold our interest in the Mack-Green joint venture to Mack-Cali for $500,000.

        In June 2009, we sold an equity interest in 1166 Avenue of the Americas for $5.0 million and recognized a loss of approximately $5.2 million on the sale.

        In November 2011, we, along with our joint venture partner, reached an agreement to sell One Court Square to a private investor group for approximately $475.0 million. The transaction includes $315.0 million of existing debt, which will be assumed by the purchaser. The transaction is subject to certain conditions, including the lender's approval of the transfer of ownership. There is no assurance that the conditions precedent contemplated in the sale agreement will be fulfilled or that the transaction will be consummated at such time or at all. We recorded a $5.8 million impairment charge, included in depreciable real estate reserves, in connection with the expected sale of this investment.

        We generally finance our joint ventures with non-recourse debt. However, in certain cases we have provided guarantees or master lease of tenant space. These guarantees and master leases terminate upon the satisfaction of specified circumstances or repayment of the underlying loans. The first mortgage notes and other loans payable collateralized by the respective joint venture properties and assignment of leases at December 31, 2011 and 2010, respectively, are as follows (in thousands):

Property	Maturity Date		Interest Rate(1)			December 31, 2011		December 31, 2010
100 Park Avenue		09/2014		6.64	%	$	214,625	$	204,946
21 West 34th Street		12/2016		5.76	%		100,000		100,000
800 Third Avenue		08/2017		6.00	%		20,910		20,910
One Court Square		09/2015		4.91	%		315,000		315,000
1604-1610 Broadway(2)		04/2012		5.66	%		27,000		27,000
388 and 390 Greenwich Street(3)		12/2017		5.19	%		1,106,757		1,106,758
1745 Broadway		01/2017		5.68	%		340,000		340,000
141 Fifth Avenue		06/2017		5.70	%		25,000		25,000
1 and 2 Jericho Plaza		05/2017		5.65	%		163,750		163,750
11 West 34th Street		01/2016		4.82	%		17,761		18,000
280 Park Avenue		06/2016		6.57	%		710,000		—
Total fixed rate debt						$	3,040,803	$	2,321,364
1515 Broadway(4)		—		—			—		462,896
The Meadows(5)		09/2012		1.63	%		84,698		87,034
388 and 390 Greenwich Street(3)		12/2017		1.43	%		31,622		31,622
16 Court Street		10/2013		2.75	%		85,728		86,844
27-29 West 34th Street(11)		05/2012		1.90	%		53,900		54,375
1551-1555 Broadway(6)		—		—			—		128,600
521 Fifth Avenue(7)		—		—			—		140,000
717 Fifth Avenue(8)		09/2012		5.25	%		245,000		245,000
379 West Broadway(11)		07/2012		1.94	%		20,991		20,991
600 Lexington Avenue		10/2017		2.38	%		125,000		125,000
180/182 Broadway(9)		12/2013		3.00	%		30,722		8,509
3 Columbus Circle(10)		04/2016		2.47	%		254,896		—
1552 Broadway(12)		08/2013		3.28	%		95,405		—
747 Madison Avenue		10/2014		3.02	%		33,125		—
Other loan payable		06/2016		1.15	%		30,000		—
Total floating rate debt						$	1,091,087	$	1,390,871
Total mortgages and other loan payable						$	4,131,890	$	3,712,235

⁽¹⁾

Rate represents the effective all-in weighted average interest rate for the quarter ended December 31, 2011.

⁽²⁾

This loan went into default in November 2009 due to the non-payment of debt service. The joint venture is in discussions with the special servicer to resolve this default.

⁽³⁾

Comprised of a $576.0 million mortgage and a $562.4 million mezzanine loan, both of which are fixed rate loans, except for $16.0 million of the mortgage and $15.6 million of the mezzanine loan which are floating rate loans. Up to $200.0 million of the mezzanine loan, secured indirectly by these properties, is recourse to us. We believe it is unlikely that we will be required to perform under this guaranty.

⁽⁴⁾

We acquired the remaining interest in this joint venture in April 2011. As a result, we have consolidated this investment since April 2011. See Notes 3 and 8.

⁽⁵⁾

This loan has a committed amount of $91.2 million.

⁽⁶⁾

This loan was refinanced in June 2011. We sold our interest in this joint venture in August 2011.

⁽⁷⁾

We acquired the remaining interest in this joint venture in January 2011. As a result, we have consolidated this investment since January 2011. See Notes 3 and 8.

⁽⁸⁾

This loan has a committed amount of $285.0 million.

⁽⁹⁾

The $31.0 million loan was repaid in December 2010 as part of a recapitalization of the joint venture. The new loan has a committed amount of $90.0 million.

⁽¹⁰⁾

We provided 50% of a bridge loan to this joint venture. In April 2011, our joint venture with The Moinian Group which owns the property located at 3 Columbus Circle, New York, refinanced the bridge loan and replaced it with a $260.0 million 5-year mortgage with the Bank of China, which carries a floating rate of interest of 210 basis points over the 30-day LIBOR, at which point SL Green and Deutsche Bank's bridge loan was repaid. The joint venture has the ability to increase the mortgage by $40.0 million based on meeting certain performance hurdles. In connection with this obligation, SLG has executed a master lease agreement. SLG's partner has executed a contribution agreement to reflect its pro rata obligation under the master lease.

⁽¹¹⁾

In May 2011, this loan was extended by 1-year.

⁽¹²⁾

This loan has a committed amount of $125.0 million.

        We act as the operating partner and day-to-day manager for all our joint ventures, except for 800 Third Avenue, 1 and 2 Jericho Plaza, 379 West Broadway, 3 Columbus Circle and The Meadows. We are generally entitled to receive fees for providing management, leasing, construction supervision and asset management services to our joint ventures. We earned approximately $12.1 million, $14.6 million and $19.0 million for these services for the years ended December 31, 2011, 2010 and 2009, respectively. In addition, we generally have the ability to earn incentive fees based on the ultimate financial performance of certain of the joint venture properties.

        The condensed combined balance sheets for our unconsolidated joint ventures at December 31, 2011 and 2010 are as follows (in thousands):

	2011		2010
Assets
Commercial real estate property, net	$	5,699,113	$	4,831,897
Other assets		599,596		516,049
Total assets	$	6,298,709	$	5,347,946
Liabilities and members' equity
Mortgages and other loans payable	$	4,131,890	$	3,712,235
Other liabilities		250,925		233,463
Members' equity		1,915,894		1,402,248
Total liabilities and members' equity	$	6,298,709	$	5,347,946
Company's net investment in unconsolidated joint ventures	$	893,933	$	631,570

        The condensed combined statements of income for the unconsolidated joint ventures for the three years ended December 31, 2011, from the acquisition date, are as follows (in thousands):

	2011			2010		2009
Total revenues	$	480,935		$	593,159	$	689,087
Operating expenses		75,513			94,515		120,215
Real estate taxes		51,511			66,588		84,827
Transaction related costs		2,665			1,105		—
Interest		223,400			224,766		208,295
Depreciation and amortization		137,070			141,284		156,470
Total expenses		490,159			528,258		569,807
Net (loss) income before gain on sale	$	(9,224	)	$	64,901	$	119,280
Company's equity in net income of unconsolidated joint ventures	$	1,583		$	39,607	$	62,878

Gramercy Capital Corp.

        In April 2004, we formed Gramercy as a commercial real estate finance business. Gramercy qualified as a REIT for federal income tax purposes and expects to qualify for its current fiscal year.

        At December 31, 2011, we held 3.2 million shares, or approximately 6.3% of Gramercy's common stock. Our total investment of approximately $8.1 million is based on the market value of our common stock investment in Gramercy at December 31, 2011. As we no longer have any significant influence over Gramercy, we account for our investment as available-for-sale securities. During 2011, we sold 2.1 million shares of Gramercy common stock and realized a gain of approximately $4.5 million on the sale. During 2010, we sold 870,000 shares of Gramercy common stock and realized a gain of approximately $1.4 million on the sale. These gains were reclassified out of Accumulated Other Comprehensive Loss.

        Effective May 2005, June 2009 and October 2009, Gramercy entered into lease agreements with an affiliate of ours, for their corporate offices at 420 Lexington Avenue, New York, New York. The first lease is for approximately 7,300 square feet and carries a term of ten years with rents of approximately $249,000 per annum for year one increasing to $315,000 per annum in year ten. The second lease is for approximately 900 square feet pursuant to a lease which ends in April 2015, with annual rent under this lease of approximately $35,300 per annum for year one increasing to $42,800 per annum in year six. The third lease is for approximately 1,400 square feet pursuant to a lease which ends in April 2015, with annual rent under this lease of approximately $67,300 per annum for year one increasing to $80,500 per annum in year six.

        See Note 5 for information on our debt and preferred equity investments in which Gramercy also holds an interest.

        Marc Holliday, our chief executive officer, remains a board member of Gramercy.

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Significant Accounting Policies (Details 5)	12 Months Ended																		12 Months Ended
	Dec. 31, 2011 option statement agreement	Dec. 31, 2011 Annualized rent Customer concentration	Dec. 31, 2011 Annualized rent 919 Third Avenue Customer concentration	Dec. 31, 2010 Annualized rent 919 Third Avenue Customer concentration	Dec. 31, 2009 Annualized rent 919 Third Avenue Customer concentration	Dec. 31, 2011 Annualized rent 1185 Avenue of the Americas. Customer concentration	Dec. 31, 2010 Annualized rent 1185 Avenue of the Americas. Customer concentration	Dec. 31, 2009 Annualized rent 1185 Avenue of the Americas. Customer concentration	Dec. 31, 2011 Annualized rent One Madison Avenue Customer concentration	Dec. 31, 2010 Annualized rent One Madison Avenue Customer concentration	Dec. 31, 2009 Annualized rent One Madison Avenue Customer concentration	Dec. 31, 2010 Annualized rent 420 Lexington Avenue Customer concentration	Dec. 31, 2009 Annualized rent 420 Lexington Avenue Customer concentration	Dec. 31, 2010 Annualized rent 485 Lexington Avenue Customer concentration	Dec. 31, 2009 Annualized rent 485 Lexington Avenue Customer concentration	Dec. 31, 2009 Annualized rent 220 East 42nd Street Customer concentration	Dec. 31, 2011 Annualized rent 1515 Broadway Customer concentration	Dec. 31, 2011 Annualized rent One tenant Customer concentration	Dec. 31, 2011 Revenue earned on debt and preferred equity investments Two borrowers Credit concentration	Dec. 31, 2011 Collective bargaining arrangements Workforce concentration	Dec. 31, 2011 Collective bargaining arrangements which expires in 2015 Workforce concentration
Concentration of Credit Risk
Maximum percentage of annualized rent for any one tenant not individually disclosed		6.90%
Percentage of concentration			8.00%	10.00%	10.00%	7.00%	9.00%	9.00%	7.00%	7.00%	8.00%	7.00%	8.00%	6.00%	6.00%	6.00%	10.00%	7.20%		75.00%	76.40%
Minimum revenue on debt and preferred equity investments (as a percent)																			10.00%
Number of collective bargaining agreements	3
Number of options for presenting other comprehensive income (OCI)	2
Number of statements in which statement of total comprehensive income can be presented	2

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Property Dispositions and Assets Held for Sale

12 Months Ended

Dec. 31, 2011

Property Dispositions and Assets Held for Sale

Property Dispositions and Assets Held for Sale

4. Property Dispositions and Assets Held for Sale

        In May 2011, we sold our property located at 28 West 44^th Street for $161.0 million. The property is approximately 359,000 square feet (unaudited). We recognized a gain of $46.1 million on the sale which is net of a $2.5 million employee compensation award, accrued in connection with the realization of this investment gain as a bonus to certain employees that were instrumental in realizing the gain on this sale.

        In October 2011, we entered into an agreement to sell the leased fee interest at 292 Madison Avenue for $85 million. The transaction is subject to certain closing conditions, including the lender's approval of the transfer of ownership. There can be no assurance as to when the conditions precedent contemplated in the sale agreement will be fulfilled, or that the transaction will be consummated.

        In September 2010, we sold the property located at 19 West 44^th Street in Manhattan for $123.2 million. The property is approximately 292,000 square feet (unaudited). We recognized a gain on the sale of approximately $35.5 million which is net of a $0.5 million employee compensation award, accrued in connection with the realization of this investment gain as a bonus to certain employees that were instrumental in realizing the gain on this sale.

        In January 2009, we, along with our joint venture partner, Gramercy, sold 100% of our interests in 55 Corporate Drive, New Jersey for $230.0 million. The property is approximately 670,000 square feet (unaudited). We recognized a gain of approximately $4.6 million in connection with the sale of our 50% interest in the joint venture, which is net of a $2.0 million employee compensation award, accrued in connection with the realization of this investment gain as a bonus to certain employees that were instrumental in realizing the gain on this sale.

        In August 2009, we sold the property located at 399 Knollwood Road, Westchester, for $20.7 million. The property is approximately 145,000 square feet (unaudited) and is encumbered by an $18.5 million mortgage. We recognized a loss on the sale of approximately $11.4 million.

        Discontinued operations included the results of operations of real estate assets under contract or sold prior to December 31, 2011. This included 55 Corporate Drive, NJ, which was sold in January 2009, the membership interests in GKK Manager LLC which were sold in April 2009 (See Note 6), 399 Knollwood Road, Westchester which was sold in August 2009, 19 West 44^th Street, which was sold in September 2010, 28 West 44^th Street, which was sold in May 2011 and 292 Madison Avenue which was held for sale at December 31, 2011.

        The following table summarizes income from discontinued operations for the years ended December 31, 2011, 2010 and 2009, respectively (in thousands).

	Year Ended December 31,
	2011		2010		2009
Revenues
Rental revenue	$	12,636	$	22,912	$	29,221
Escalation and reimbursement revenues		873		4,683		5,740
Other income		60		881		6,750
Total revenues		13,569		28,476		41,711
Operating expense		1,654		7,403		8,969
Real estate taxes		1,033		4,776		5,668
Interest expense, net of interest income		4,253		2,998		4,716
Amortization of deferred financing costs		172		883		883
Depreciation and amortization		676		5,326		6,858
Marketing, general and administrative and transaction related costs		1		26		7,299
Total expenses		7,789		21,412		34,393
Net income from discontinued operations	$	5,780	$	7,064	$	7,318

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Debt and Preferred Equity Investments

12 Months Ended

Dec. 31, 2011

Debt and Preferred Equity Investments

Debt and Preferred Equity Investments

5. Debt and Preferred Equity Investments

        During the years ended December 31, 2011 and 2010, our debt and preferred equity investments (net of discounts) increased approximately $622.5 million and $520.7 million, respectively, due to originations, purchases, accretion of discounts and paid-in-kind interest. We recorded approximately $600.3 million and $342.5 million in repayments, participations, sales, foreclosures and loan loss reserves during those periods, respectively, which offset the increases in debt and preferred equity investments.

        As of December 31, 2011 and 2010, we held the following debt investments with an aggregate weighted average current yield of approximately 7.5% (in thousands):

Loan Type	December 31, 2011 Senior Financing		December 31, 2011 Amount Outstanding, Net of Discounts			December 31, 2010 Amount Outstanding, Net of Discounts			Initial Maturity Date
Other Loan(1)	$	15,000	$	3,500		$	3,500			September 2021
Mortgage/Mezzanine Loan(1)		205,000		64,973			60,407			February 2016
Mortgage/ Mezzanine Loan(1)		171,549		46,416			46,358			May 2016
Mezzanine Loan(1)		165,000		40,375			39,711			November 2016
Mezzanine Loan(1)(2)(3)(6)(7)		—		—			27,187			—
Mezzanine Loan(1)(7)(14)		—		—			15,697			—
Junior Participation(1)(4)(6)(7)		—		8,725			9,938			April 2008
Mortgage/Mezzanine Loan(1)(8)(18)		1,109,000		108,817			84,062			March 2017
Junior Participation(1)(6)		53,000		11,000			11,000			November 2012
Junior Participation(6)		61,250		10,875			10,875			June 2012
Junior Participation(6)		—		—			5,866			—
Junior Participation(5)(6)		—		—			47,484			—
Mortgage/ Mezzanine Loan(2)(9)		—		—			137,222			—
Junior Participation(11)		—		—			42,439			—
Junior Participation		—		—			9,200			—
Mezzanine Loan(1)(12)		—		—			202,136			—
Mezzanine Loan(1)(17)		75,000		7,650			15,000			July 2013
Mortgage(10)		—		86,339			86,339			June 2012
Mortgage(13)		28,500		3,000			26,000			February 2013
Mezzanine Loan(15)		796,693		8,392			13,536			August 2012
Mezzanine Loan(1)(16)		—		—			38,892			—
Mezzanine Loan(1)		177,000		17,112			—			May 2016
Junior Participation(1)		133,000		49,000			—			June 2016
Mezzanine Loan		170,000		60,000			—			August 2014
Mezzanine Loan(1)		55,000		35,000			—			July 2016
Mezzanine Loan(19)		81,000		34,940			—			October 2016
Mezzanine Loan		45,000		10,000			—			January 2015
Mezzanine Loan		467,000		30,747			—			July 2012
Other Loan		48,300		3,196			—			May 2012
Loan loss reserve(6)		—		(19,125	)		(40,461	)		—
	$	3,856,292	$	620,932		$	892,388

⁽¹⁾

This is a fixed rate loan.

⁽²⁾

The difference between the pay and accrual rates is included as an addition to the principal balance outstanding.

⁽³⁾

This loan was sold in February 2011. We realized $6.2 million of additional income upon the sale. A portion of this income is included in loan loss and other reserves, net of recoveries.

⁽⁴⁾

This loan is in default. The lender has begun foreclosure proceedings. Another participant holds a $12.2 million pari-pasu interest in this loan.

⁽⁵⁾

Gramercy was the borrower under this loan. We sold this loan, which consisted of mortgage and mezzanine financing, for $35.8 million, in May 2011. We realized $1.2 million of additional income upon the sale, which is included in loan loss and other reserves, net of recoveries.

⁽⁶⁾

Loan loss reserves are specifically allocated to investments. Our reserves reflect management's judgment of the probability and severity of losses based on Level 3 data. We cannot be certain that our judgment will prove to be correct or that reserves will be adequate over time to protect against potential future losses.

⁽⁷⁾

This loan is on non-accrual status.

⁽⁸⁾

Interest is added to the principal balance for this accrual only loan.

⁽⁹⁾

Gramercy held a pari passu interest in the mezzanine loan. This loan was repaid in March 2011.

⁽¹⁰⁾

We hold an 88% interest in the consolidated joint venture that acquired this loan. This investment is denominated in British Pounds.

⁽¹¹⁾

This loan was repaid in January 2011. We realized $1.3 million of additional income upon the sale. This income is included in preferred equity and investment income.

⁽¹²⁾

In March 2011, we contributed our debt investment with a carrying value of $286.6 million to a newly formed joint venture in which we hold a 50% interest. We realized $38.7 million of additional income upon the contribution. This income is included in preferred equity and investment income. The joint venture paid us approximately $111.3 million and also assumed $30 million of related floating rate financing which matures in June 2016 and carried a weighted average interest rate for the quarter of 1.16%. In May 2011, this joint venture took control of the underlying property as part of a recapitalization transaction. See Note 6.

⁽¹³⁾

In June 2011, we funded an additional $5.5 million and extended the maturity date of this loan to February 2013. In September 2011, we entered into a loan participation in the amount of $28.5 million on a $31.5 million mortgage. We have assigned our right as servicer to a third party. Due to our continued involvement with the loan, the portion that was participated out has been recorded in other assets and other liabilities in the accompanying consolidated balance sheet.

⁽¹⁴⁾

In May 2011, we acquired a substantial ownership interest in the 205,000-square-foot office condominium along with control of the asset. We provided a senior mezzanine loan as part of the sale of the condominium unit in 2007. The transaction included a consensual modification of that loan. See Note 3.

⁽¹⁵⁾

In connection with the extension of this loan, a portion of the mezzanine loan was converted to preferred equity. See note 6 to the next table.

⁽¹⁶⁾

In connection with a recapitalization of the investment, our mezzanine loan was converted to preferred equity. See note 7 to the next table.

⁽¹⁷⁾

In November 2011, we entered into a loan participation agreement in the amount of $7.4 million on a $15.0 million mortgage. Due to our continued involvement with the loan, the portion that was participated out has been recorded in other assets and other liabilities in the accompanying consolidated balance sheet.

⁽¹⁸⁾

The mezzanine loan is on non-accrual status.

⁽¹⁹⁾

As of December 31, 2011, we were committed to fund and additional $15.0 million in connection with this loan.

Preferred Equity Investments

        As of December 31, 2011 and 2010, we held the following preferred equity investments with an aggregate weighted average current yield of approximately 9.8% (in thousands):

Type	December 31, 2011 Senior Financing		December 31, 2011 Amount Outstanding, Net of Discounts			December 31, 2010 Amount Outstanding, Net of Discounts			Initial Mandatory Redemption
Preferred equity(1)(4)(5)(7)	$	480,000	$	141,980		$	45,912			July 2014
Preferred equity(3)(4)(6)		975,890		51,000			46,372			August 2012
Preferred equity(4)		926,260		203,080			—			July 2016
Loan loss reserve(2)		—		(31,050	)		(20,900	)		—
	$	2,382,150	$	365,010		$	71,384

⁽¹⁾

This is a fixed rate investment.

⁽²⁾

Loan loss reserves are specifically allocated to investments. Our reserves reflect management's judgment of the probability and severity of losses based on Level 3 data. We cannot be certain that our judgment will prove to be correct and that reserves will be adequate over time to protect against potential future losses.

⁽³⁾

This investment is on non-accrual status.

⁽⁴⁾

The difference between the pay and accrual rates is included as an addition to the principal balance outstanding.

⁽⁵⁾

This investment was classified as held for sale at June 30, 2009, but as held-to-maturity for all periods subsequent to June 30, 2009. The reserve previously taken against this loan is being accreted up to the face amount through the maturity date.

⁽⁶⁾

In connection with the extension of this loan, a portion of the mezzanine loan was converted to preferred equity. See note 15 to the prior table.

⁽⁷⁾

In connection with a recapitalization of the investment, our mezzanine loan was converted to preferred equity. We also made an additional $50.0 million preferred equity loan. See note 16 to the prior table.

        The following table is a rollforward of our total allowance for loan loss reserves at December 31, 2011, 2010 and 2009 related to our debt and preferred equity investments (in thousands):

	2011			2010			2009
Balance at beginning of year	$	61,361		$	93,844		$	98,916
Expensed		10,875			24,418			145,855
Recoveries		(4,370	)		(3,662	)		—
Charge-offs		(17,691	)		(53,239	)		(150,927	)
Balance at end of period	$	50,175		$	61,361		$	93,844

        At December 31, 2011, 2010 and 2009 all debt and preferred equity investments, other than as noted above, were performing in accordance with the terms of the loan agreements.

        We have determined that we have one portfolio segment of financing receivables at December 31, 2011 and 2010 comprising commercial real estate which is primarily recorded in debt and preferred equity investments. Included in other assets is an additional amount of financing receivables totaling approximately $108.7 million at December 31, 2011 and $78.7 million at December 31, 2010. The nonaccrual balance of financing receivables at December 31, 2011 and 2010 was $102.6 million and $140.8 million, respectively. The recorded investment for financing receivables past due 90 days was $17.3 million associated with two financing receivables at December 31, 2011 and $9.9 million associated with one financing receivable at December 31, 2010. All financing receivables are individually evaluated for impairment.

        The following table presents impaired loans, which may include non-accrual loans, as of December 31, 2011 and 2010, respectively (in thousands):

	December 31, 2011						December 31, 2010
	Unpaid Principal Balance		Recorded Investment		Allowance Allocated		Unpaid Principal Balance		Recorded Investment		Allowance Allocated
With no related allowance recorded:
Commercial real estate	$	106,623	$	83,378	$	—	$	103,678	$	99,759	$	—
With an allowance recorded:
Commercial real estate		86,121		81,475		50,175		160,711		158,597		61,361
Total	$	192,744	$	164,853	$	50,175	$	264,389	$	258,356	$	61,361

        The following table presents the average recorded investment in impaired loans, which may include non-accrual loans and the related investment and preferred equity income recognized during the years ended December 31, 2011 and 2010, respectively (in thousands):

	Year Ended December 31,
	2011		2010
Average recorded investment in impaired loans	$	191,288	$	252,813
Investment and preferred equity income recognized		9,554		8,156

        On an ongoing basis, we monitor the credit quality of our financing receivables based on payment activity. We assess credit quality indicators based on the underlying collateral.

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Deferred Costs

12 Months Ended

Dec. 31, 2011

Deferred Costs

Deferred Costs

7. Deferred Costs

        Deferred costs at December 31, 2011 and 2010 consisted of the following (in thousands):

	2011			2010
Deferred financing	$	113,620		$	86,256
Deferred leasing		238,394			200,633
		352,014			286,889
Less accumulated amortization		(141,228	)		(114,372	)
Deferred costs, net	$	210,786		$	172,517

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Debt and Preferred Equity Investments (Details 2) (USD $)					12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009	Dec. 31, 2008	Dec. 31, 2011 Preferred equity investments	Dec. 31, 2010 Preferred equity investments	Dec. 31, 2011 Preferred equity with initial mandatory redemption on July, 2014	Dec. 31, 2010 Preferred equity with initial mandatory redemption on July, 2014	Dec. 31, 2011 Preferred equity with initial mandatory redemption on August, 2012	Dec. 31, 2010 Preferred equity with initial mandatory redemption on August, 2012	Dec. 31, 2011 Preferred equity with initial mandatory redemption on July, 2016
Preferred equity investment
Aggregate weighted average current yield (as a percent)					9.80%	9.80%
Senior Financing					$ 2,382,150,000		$ 480,000,000		$ 975,890,000		$ 926,260,000
Amount Outstanding, Net of Discounts							141,980,000	45,912,000	51,000,000	46,372,000	203,080,000
Loan loss reserve	(50,175,000)	(61,361,000)	(93,844,000)	(98,916,000)	(31,050,000)	(20,900,000)
Amount Outstanding, Net of Discounts	985,942,000	963,772,000			365,010,000	71,384,000
Preferred equity loans granted							$ 50,000,000

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Commitments and Contingencies (Details 2) (USD $)			1 Months Ended			12 Months Ended	1 Months Ended		12 Months Ended				1 Months Ended	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Oct. 31, 2009 420 Lexington Avenue	Jun. 30, 2009 420 Lexington Avenue	Mar. 31, 1998 420 Lexington Avenue	Dec. 31, 2011 420 Lexington Avenue	Jul. 31, 2016 711 Third Avenue	Jul. 31, 2011 711 Third Avenue	Dec. 31, 2011 711 Third Avenue	Dec. 31, 2011 461 Fifth Avenue y option	Dec. 31, 2011 625 Madison Avenue y option	Dec. 31, 2011 1185 Avenue of the Americas. y	Apr. 30, 1988 673 First Avenue y	Dec. 31, 2011 673 First Avenue y	Dec. 31, 2010 673 First Avenue
Commitments and Contingencies
Required annual ground lease payments					$ 6,000,000	$ 10,900,000	$ 5,500,000		$ 5,250,000	$ 2,100,000	$ 4,600,000	$ 6,900,000
Required sub-leasehold position payments					1,100,000
Operating sub-leasehold position acquired			7,600,000	7,700,000
Required annual ground lease payments, prior to reset								1,550,000
Percentage of fee not owned by the entity									50.00%
Number of renewal options available										2	2
Term of first renewal option (in years)										21	23	23	26
Term of second renewal option (in years)										21	23
Term of third renewal option (in years)										15
Land as percentage of fair market value of the property													70.00%
Initial lease term (in years)													49
Lease year lessor is entitled to additional rent														11
Second lease year lessor is entitled to additional rent														25
Capital lease, cost basis	12,208,000	12,208,000												12,200,000
Cumulative amortization														$ 6,000,000	$ 5,800,000

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Debt and Preferred Equity Investments (Details 4) (USD $)	12 Months Ended
	Dec. 31, 2011 segment count	Dec. 31, 2010 count segment
Debt and Preferred Equity Investments
Number of portfolio segments of financial receivables	1	1
Additional amount of financing receivables included in other assets	$ 108,700,000	$ 78,700,000
Nonaccrual balance of financing receivables	102,600,000	140,800,000
Recorded investment for financing receivables past due 90 days	17,300,000	9,900,000
Number of financing receivables past due 90 days	2	1
Impaired loans, including non-accrual loans
Unpaid Principal Balance	192,744,000	264,389,000
Recorded Investment	164,853,000	258,356,000
Allowance Allocated	50,175,000	61,361,000
Average recorded investment in impaired loans	191,288,000	252,813,000
Investment and preferred equity income recognized	9,554,000	8,156,000
With no related allowance recorded
Impaired loans, including non-accrual loans
Unpaid Principal Balance	106,623,000	103,678,000
Recorded Investment	83,378,000	99,759,000
With an allowance recorded
Impaired loans, including non-accrual loans
Unpaid Principal Balance	86,121,000	160,711,000
Recorded Investment	81,475,000	158,597,000
Allowance Allocated	$ 50,175,000	$ 61,361,000

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Debt and Preferred Equity Investments (Details) (USD $)	12 Months Ended				12 Months Ended										1 Months Ended		1 Months Ended											1 Months Ended			1 Months Ended			1 Months Ended							1 Months Ended
	Dec. 31, 2011 sqft	Dec. 31, 2010	Dec. 31, 2009	Dec. 31, 2008	Dec. 31, 2011 Debt investment	Dec. 31, 2010 Debt investment	Dec. 31, 2011 Other loan with an initial maturity of September 2021	Dec. 31, 2010 Other loan with an initial maturity of September 2021	Dec. 31, 2011 Mortgage/Mezzanine loan with an initial maturity date of February 2016	Dec. 31, 2010 Mortgage/Mezzanine loan with an initial maturity date of February 2016	Dec. 31, 2011 Mortgage/Mezzanine loan with an initial maturity date of May 2016	Dec. 31, 2010 Mortgage/Mezzanine loan with an initial maturity date of May 2016	Dec. 31, 2011 Mezzanine loan with an initial maturity date of November 2016	Dec. 31, 2010 Mezzanine loan with an initial maturity date of November 2016	Feb. 28, 2011 Mezzanine loan sold in February 2011	Dec. 31, 2010 Mezzanine loan sold in February 2011	May 31, 2011 Mezzanine Loan. sqft	Dec. 31, 2010 Mezzanine Loan.	Dec. 31, 2011 Junior participation with an initial maturity of April 2008	Dec. 31, 2010 Junior participation with an initial maturity of April 2008	Dec. 31, 2011 Mortgage/Mezzanine loan with an initial maturity date of March 2017	Dec. 31, 2010 Mortgage/Mezzanine loan with an initial maturity date of March 2017	Dec. 31, 2011 Junior participation with an initial maturity date of November 2012	Dec. 31, 2010 Junior participation with an initial maturity date of November 2012	Dec. 31, 2011 Junior participation with an initial maturity date of June 2012	Dec. 31, 2010 Junior participation with an initial maturity date of June 2012	Dec. 31, 2010 Junior participation with an initial maturity date of December 2010	May 31, 2011 Junior participation sold in May 2011	Dec. 31, 2010 Junior participation sold in May 2011	Dec. 31, 2010 Mezzanine loan repaid in March 2011	Jan. 31, 2011 Junior participation sold in January 2011	Dec. 31, 2010 Junior participation sold in January 2011	Dec. 31, 2010 Junior participation with an initial maturity date of October 2011	Mar. 31, 2011 Mezzanine loan	Dec. 31, 2010 Mezzanine loan	Dec. 31, 2011 Mezzanine loan with an initial maturity date of July 2013	Nov. 30, 2011 Mezzanine loan with an initial maturity date of July 2013	Dec. 31, 2010 Mezzanine loan with an initial maturity date of July 2013	Dec. 31, 2011 Mortgage with an initial maturity date of June 2012	Dec. 31, 2010 Mortgage with an initial maturity date of June 2012	Jun. 30, 2011 Mortgage with an initial maturity date of February 2013	Dec. 31, 2011 Mortgage with an initial maturity date of February 2013	Sep. 30, 2011 Mortgage with an initial maturity date of February 2013	Dec. 31, 2010 Mortgage with an initial maturity date of February 2013	Dec. 31, 2011 Mezzanine loan with an initial maturity date of August 2012	Dec. 31, 2010 Mezzanine loan with an initial maturity date of August 2012	Dec. 31, 2010 Mezzanine loan with an initial maturity date of February 2014	Dec. 31, 2011 Mezzanine loan with an initial maturity date of May 2016	Dec. 31, 2011 Junior participation with an initial maturity date of June 2016	Dec. 31, 2011 Mezzanine loan with an initial maturity date of August 2014	Dec. 31, 2011 Mezzanine loan with an initial maturity date of July 2016	Dec. 31, 2011 Other Loan with an initial maturity of May 2012	Dec. 31, 2011 Mezzanine Loan with initial maturity date of October 2016	Dec. 31, 2011 Mezzanine Loan with initial maturity date of January 2015	Dec. 31, 2011 Mezzanine Loan with initial maturity date of July 2012
Debt and Preferred Equity Investments
Increase in debt and preferred equity investments (net of discounts), including investments classified as held-for-sale	$ 622,500,000	$ 520,700,000
Decrease in debt and preferred equity investments (net of discounts), including investments classified as held-for-sale	600,300,000	342,500,000
Debt investment
Aggregate weighted average current yield (as a percent)					7.50%	7.50%
Senior Financing					3,856,292,000		15,000,000		205,000,000		171,549,000		165,000,000								1,109,000,000		53,000,000		61,250,000											75,000,000						28,500,000			796,693,000			177,000,000	133,000,000	170,000,000	55,000,000	48,300,000	81,000,000	45,000,000	467,000,000
Amount Outstanding, Net of Discounts							3,500,000	3,500,000	64,973,000	60,407,000	46,416,000	46,358,000	40,375,000	39,711,000		27,187,000		15,697,000	8,725,000	9,938,000	108,817,000	84,062,000	11,000,000	11,000,000	10,875,000	10,875,000	5,866,000		47,484,000	137,222,000		42,439,000	9,200,000		202,136,000	7,650,000		15,000,000	86,339,000	86,339,000		3,000,000		26,000,000	8,392,000	13,536,000	38,892,000	17,112,000		60,000,000	35,000,000	3,196,000
Amount Outstanding, Net of Discounts	985,942,000	963,772,000			620,932,000	892,388,000																																											49,000,000				34,940,000	10,000,000	30,747,000
Loan Participation Amount included in Other assets & Other liabilities																																					7,400,000						28,500,000
Loan loss reserve	(50,175,000)	(61,361,000)	(93,844,000)	(98,916,000)	(19,125,000)	(40,461,000)
Realized additional income upon sale or disposal of loan															6,200,000													1,200,000			1,300,000			38,700,000
Pari passu interest in the loan of another participant																			12,200,000
Proceeds from sale of loan																												35,800,000
Ownership interest in consolidated joint venture holding the debt investment (as a percent)																																							88.00%
Interest in property (as a percent)																																		50.00%
Contribution of debt investment to a newly formed joint venture	286,571,000																																	286,600,000
Net proceeds from disposition of real estate/joint venture interest	160,548,000	623,121,000	27,946,000																															111,300,000
Mortgage loan assumed by joint venture	30,000,000																																	30,000,000
Interest rate on mortgage loan assumed by joint venture (as a percent)																																		1.16%
Additional funding provided																																									5,500,000
Area of property (in square feet)	31,426,318																205,000
Value of mortgage																																					15,000,000						31,500,000
Additional commitments to fund in connection with loan																																																					$ 15,000,000

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Subsequent Events (Details) (USD $) In Millions, except Share data, unless otherwise specified	12 Months Ended		1 Months Ended	12 Months Ended					1 Months Ended
	Dec. 31, 2011 sqft	Dec. 31, 2011 At-the-market equity offering programs	Feb. 29, 2012 Issuance of common stock At-the-money equity offering programs	Dec. 31, 2011 Retail and multifamily properties sqft y	Dec. 31, 2011 Retail properties property y	Dec. 31, 2011 Manhattan sqft	Dec. 31, 2011 141 Fifth Avenue sqft	Dec. 31, 2011 141 Fifth Avenue Retail properties sqft	Oct. 31, 2011 Joint venture Manhattan Retail and multifamily properties property	Dec. 31, 2011 Joint venture 10 East 53rd Street sqft	Oct. 31, 2011 Joint venture 141 Fifth Avenue property	Jan. 31, 2012 Jeff Sutton 724 Fifth Avenue sqft	Jan. 31, 2012 Jeff Sutton 724 Fifth Avenue Offering of debt 5.00% senior notes due on August 15, 2018 y
Subsequent Events
Number of properties agreed to be acquired									5
Aggregate purchase price of properties agreed to be acquired									$ 193.1	$ 252.5		$ 223.0
Area of residential component (in square feet)	31,426,318			488,000		24,621,618	22,000	13,000		390,000		65,010
Term of mortgage loan (in years)				7	5								5
Mortgage loan				100.0	8.5								120.0
Interest rate on fixed rate mortgage loan (as a percent)				4.125%
Number of properties financed with a 5-year $8.5 million mortgage					1
Variable interest rate (as a percent)													30-day LIBOR
Basis spread on variable interest rate (as a percent)													235.00%
Sales price											46.0
Number of properties agreed to be sold											2
Common stock, shares issued		6,700,000	661,500
Aggregate gross proceeds from shares sold		525.0	50.7
Aggregate net proceeds from shares sold			$ 49.9

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Significant Accounting Policies (Policies)

12 Months Ended

Dec. 31, 2011

Significant Accounting Policies

Principles of Consolidation

Principles of Consolidation

        The consolidated financial statements include our accounts and those of our subsidiaries, which are wholly-owned or controlled by us. Entities which we do not control through our voting interest and entities which are variable interest entities, but where we are not the primary beneficiary, are accounted for under the equity method or as debt and preferred equity investments. See Notes 5 and 6. All significant intercompany balances and transactions have been eliminated.

        The FASB amended the guidance for determining whether an entity is a variable interest entity, or VIE, and requires the performance of a qualitative rather than a quantitative analysis to determine the primary beneficiary of a VIE. Under this guidance, an entity would be required to consolidate a VIE if it has (i) the power to direct the activities that most significantly impact the entity's economic performance and (ii) the obligation to absorb losses of the VIE or the right to receive benefits from the VIE that could be significant to the VIE.

        A noncontrolling interest in a consolidated subsidiary is defined as the portion of the equity (net assets) in a subsidiary not attributable, directly or indirectly, to a parent. Noncontrolling interests are required to be presented as a separate component of equity in the consolidated balance sheet and modifies the presentation of net income by requiring earnings and other comprehensive income to be attributed to controlling and noncontrolling interests.

        We assess the accounting treatment for each joint venture and debt and preferred equity investment. This assessment includes a review of each joint venture or partnership limited liability company agreement to determine which party has what rights and whether those rights are protective or participating. For all VIE's, we review such agreements in order to determine which party has the power to direct the activities that most significantly impact the entity's economic performance. In situations where we or our partner approves, among other things, the annual budget, receives a detailed monthly reporting package from us, meets on a quarterly basis to review the results of the joint venture, reviews and approves the joint venture's tax return before filing, and approves all leases that cover more than a nominal amount of space relative to the total rentable space at each property, we do not consolidate the joint venture as we consider these to be substantive participation rights that result in shared power of the activities that most significantly impact the performance of our joint venture. Our joint venture agreements also contain certain protective rights such as the requirement of partner approval to sell, finance or refinance the property and the payment of capital expenditures and operating expenditures outside of the approved budget or operating plan.

Investment in Commercial Real Estate Properties

Investment in Commercial Real Estate Properties

        Rental properties are stated at cost less accumulated depreciation and amortization. Costs directly related to the development or redevelopment of rental properties are capitalized. Ordinary repairs and maintenance are expensed as incurred; major replacements and betterments, which improve or extend the life of the asset, are capitalized and depreciated over their estimated useful lives.

        A property to be disposed of is reported at the lower of its carrying amount or its estimated fair value, less its cost to sell. Once an asset is held for sale, depreciation expense is no longer recorded and the historic results are reclassified as discontinued operations. See Note 4.

        Properties are depreciated using the straight-line method over the estimated useful lives of the assets. The estimated useful lives are as follows:

Category	Term
Building (fee ownership)	40 years
Building improvements	shorter of remaining life of the building or useful life
Building (leasehold interest)	lesser of 40 years or remaining term of the lease
Property under capital lease	remaining lease term
Furniture and fixtures	four to seven years
Tenant improvements	shorter of remaining term of the lease or useful life

        Depreciation expense (including amortization of the capital lease asset) amounted to approximately $254.5 million, $207.1 million and $205.5 million for the years ended December 31, 2011, 2010 and 2009, respectively.

        On a periodic basis, we assess whether there are any indicators that the value of our real estate properties may be impaired or that their carrying value may not be recoverable. A property's value is considered impaired if management's estimate of the aggregate future cash flows (undiscounted and without interest charges for consolidated properties) to be generated by the property are less than the carrying value of the property. To the extent impairment has occurred, the loss will be measured as the excess of the carrying amount of the property over the calculated fair value of the property. In addition, we assess our investments in unconsolidated joint ventures for recoverability, and if it is determined that a loss in value of the investment is other than temporary, we write down the investment to its fair value. We evaluate our equity investments for impairment based on the joint venture's projected discounted cash flows. During 2011, we recorded a $5.8 million impairment charge in connection with the expected sale of one of our equity investments. During 2010, we recorded a $2.8 million impairment charge on one of our equity investments. These charges are included in depreciable real estate reserves in the Consolidated Statements of Income. We do not believe that the value of any of our consolidated properties was impaired at December 31, 2011 and 2010, respectively.

        A variety of costs are incurred in the development and leasing of our properties. After determination is made to capitalize a cost, it is allocated to the specific component of a project that is benefited. Determination of when a development project is substantially complete and capitalization must cease involves a degree of judgment. The costs of land and building under development include specifically identifiable costs. The capitalized costs include pre-construction costs essential to the development of the property, development costs, construction costs, interest costs, real estate taxes, salaries and related costs and other costs incurred during the period of development. We consider a construction project as substantially completed and held available for occupancy upon the completion of tenant improvements, but no later than one year from cessation of major construction activity. We cease capitalization on the portions substantially completed and occupied or held available for occupancy, and capitalize only those costs associated with the portions under construction.

        Results of operations of properties acquired are included in the Consolidated Statements of Income from the date of acquisition.

        On January 1, 2009, we adopted FASB guidance that requires the acquiring entity in a business combination to measure the assets acquired, liabilities assumed (including contingencies) and any noncontrolling interests at their fair values on the acquisition date. The guidance also requires that acquisition- related transaction costs be expensed as incurred, acquired research and development value be capitalized and acquisition-related restructuring costs be capitalized only if they meet certain criteria. Beginning January 1, 2009, we began expensing acquisition-related transaction costs as incurred. These costs are included in transaction related costs on our Consolidated Statements of Income.

        We allocate the purchase price of real estate to land and building and, if determined to be material, intangibles, such as the value of above-, below- and at-market leases and origination costs associated with the in-place leases. We depreciate the amount allocated to building and other intangible assets over their estimated useful lives, which generally range from three to 40 years and from one to 14 years, respectively. The values of the above- and below-market leases are amortized and recorded as either an increase (in the case of below-market leases) or a decrease (in the case of above-market leases) to rental income over the remaining term of the associated lease, which generally range from one to 14 years. The value associated with in-place leases are amortized over the expected term of the associated lease, which generally range from one to 14 years. If a tenant vacates its space prior to the contractual termination of the lease and no rental payments are being made on the lease, any unamortized balance of the related intangible will be written off. The tenant improvements and origination costs are amortized as an expense over the remaining life of the lease (or charged against earnings if the lease is terminated prior to its contractual expiration date). We assess fair value of the leases based on estimated cash flow projections that utilize appropriate discount and capitalization rates and available market information. Estimates of future cash flows are based on a number of factors including the historical operating results, known trends, and market/economic conditions that may affect the property. To the extent acquired leases contain fixed rate renewal options that are below market and determined to be material, we amortized such below market lease value into rental income over the renewal period.

        We recognized an increase of approximately $19.8 million, $22.7 million and $24.2 million in rental revenue for the years ended December 31, 2011, 2010 and 2009, respectively, for the amortization of aggregate below-market leases in excess of above-market leases and a reduction in lease origination costs, resulting from the allocation of the purchase price of the applicable properties. We recognized a reduction in interest expense for the amortization of the above-market rate mortgages assumed of approximately $5.9 million, $2.7 million and $2.7 million for the years ended December 31, 2011, 2010 and 2009, respectively.

        The following summarizes our identified intangible assets (acquired above-market leases and in-place leases) and intangible liabilities (acquired below-market leases) as of December 31, 2011 (in thousands):

	December 31, 2011			December 31, 2010
Identified intangible assets (included in other assets):
Gross amount	$	673,495		$	758,300
Accumulated amortization		(193,442	)		(133,737	)
Net	$	480,053		$	624,563
Identified intangible liabilities (included in deferred revenue):
Gross amount	$	622,029		$	508,339
Accumulated amortization		(290,893	)		(220,417	)
Net	$	331,136		$	287,922

        The estimated annual amortization of acquired below-market leases, net of acquired above-market leases (a component of rental revenue), for each of the five succeeding years is as follows (in thousands):

2012	$	10,767
2013		9,787
2014		7,869
2015		6,404
2016		5,664

        The estimated annual amortization of all other identifiable assets (a component of depreciation and amortization expense) including tenant improvements for each of the five succeeding years is as follows (in thousands):

2012	$	11,818
2013		10,229
2014		7,507
2015		5,821
2016		4,204

Cash and Cash Equivalents

Cash and Cash Equivalents

        We consider all highly liquid investments with maturity of three months or less when purchased to be cash equivalents.

Fair Value Measurements

Fair Value Measurements

        Fair value is a market-based measurement, not an entity-specific measurement, and should be determined based on the assumptions that market participants would use in pricing the asset or liability. As a basis for considering market participant assumptions in fair value measurements, FASB guidance establishes a fair value hierarchy that distinguishes between market participant assumptions based on market data obtained from sources independent of the reporting entity (observable inputs that are classified within levels one and two of the hierarchy) and the reporting entity's own assumptions about market participant assumptions (unobservable inputs classified within level three of the hierarchy).

        We determined the fair value of our current investments in marketable securities using level one, level two and level three inputs. Additionally, we determined the valuation allowance for loan losses based on level three inputs. See "Note 5—Debt and Preferred Equity Investments."

        The estimated fair values of tangible and intangible assets and liabilities recorded in connection with business combinations are based on level three inputs. We estimate fair values based on cash flow projections utilizing appropriate discount and/or capitalization rates and available market information.

        We determine impairment in real estate investments and debt and preferred equity investments, including intangibles, utilizing cash flow projections that apply estimated revenue and expense growth rates, discount rates and capitalization rates, which are classified as level three inputs.

        We use the following methods and assumptions in estimating fair value disclosures for financial instruments.

• •

  Cash and cash equivalents:  The carrying amount of unrestricted cash and cash equivalents reported in our Consolidated Balance Sheets approximates fair value due to the short maturity of these instruments.

  •

  Debt and Preferred Equity Investments:  The fair value of debt and preferred equity investments is estimated by discounting the future cash flows using current interest rates at which similar loans with the same maturities would be made to borrowers with similar credit ratings. See Note 5 regarding valuation allowances for loan losses.

  •

  Mortgage and other loans payable and other debt:  The fair value of borrowings is estimated by discounting the future cash flows using current interest rates at which similar borrowings could be made by us.

        The methodologies used for valuing financial instruments have been categorized into three broad levels as follows:

•         Level 1—Quoted prices in active markets for identical instruments.

          Level 2—Valuations based principally on other observable market parameters, including

  • •

    Quoted prices in active markets for similar instruments,

    •

    Quoted prices in less active or inactive markets for identical or similar instruments,

    •

    Other observable inputs (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates), and

    •

    Market corroborated inputs (derived principally from or corroborated by observable market data).

•         Level 3—Valuations based significantly on unobservable inputs.

  • •

    Valuations based on third-party indications (broker quotes or counterparty quotes) which were, in turn, based significantly on unobservable inputs or were otherwise not supportable as Level 2 valuations.

    •

    Valuations based on internal models with significant unobservable inputs.

        These levels form a hierarchy. We follow this hierarchy for our financial instruments measured at fair value on a recurring and nonrecurring basis. The classifications are based on the lowest level of input that is significant to the fair value measurement.

Investment in Marketable Securities

Investment in Marketable Securities

        We invest in marketable securities. At the time of purchase, we are required to designate a security as held-to-maturity, available-for-sale, or trading depending on ability and intent. We do not have any securities designated as held-to-maturity or trading at this time. Securities available-for-sale are reported at fair value pursuant to ASC 820-10, with the net unrealized gains or losses reported as a component of accumulated other comprehensive loss. Unrealized losses that are determined to be other-than-temporary are recognized in earnings up to their credit component. Included in accumulated other comprehensive loss at December 31, 2011 and 2010 is approximately $6.9 million and $9.7 million, respectively, in net unrealized gains related to marketable securities.

        During the years ended December 31, 2011 and 2010, we disposed of certain of our marketable securities for aggregate net proceeds of $6.2 million and $2.8 million and realized gains of $4.5 million and $1.9 million, respectively, which are included in gain (loss) on investment in marketable securities on the statements of income. During the years ended December 31, 2011 and 2010, we sold $22.5 million and $41.9 million of Level 3 securities and realized a gain of $0.4 million and a loss of $1.1 million, respectively, which are also included in gain (loss) on investment in marketable securities on the Consolidated Statements of Income.

        The basis on which the cost of the bonds and marketable securities sold was determined was based on the specific identification method.

        At December 31, 2011 and 2010 we held the following marketable securities (in thousands):

	December 31,
	2011		2010
Level 1—Equity marketable securities	$	8,065	$	12,357
Level 2—Commercial mortgage-backed securities		13,369		17,445
Level 3—Rake bonds		3,889		4,250
Total marketable securities available-for-sale	$	25,323	$	34,052

        The cost basis of the Level 3 securities was $3.9 million and $4.3 million at December 31, 2011 and 2010, respectively. The Level 3 securities mature at various times through 2014.

Investment in Unconsolidated Joint Ventures

Investments in Unconsolidated Joint Ventures

        We account for our investments in unconsolidated joint ventures under the equity method of accounting in cases where we exercise significant influence over, but do not control, these entities and are not considered to be the primary beneficiary. We consolidate those joint ventures that we control or which are VIEs and where we are considered to be the primary beneficiary. In all these joint ventures, the rights of the joint venture partner are both protective as well as participating. Unless we are determined to be the primary beneficiary in a VIE, these participating rights preclude us from consolidating these non-VIE entities. These investments are recorded initially at cost, as investments in unconsolidated joint ventures, and subsequently adjusted for equity in net income (loss) and cash contributions and distributions. Any difference between the carrying amount of these investments on our balance sheet and the underlying equity in net assets is amortized as an adjustment to equity in net income (loss) of unconsolidated joint ventures over the lesser of the joint venture term or 10 years. Equity income (loss) from unconsolidated joint ventures is allocated based on our ownership or economic interest in each joint venture. When a capital event (as defined in each joint venture agreement) such as a refinancing occurs, if return thresholds are met, future equity income will be allocated at our increased economic interest. We recognize incentive income from unconsolidated real estate joint ventures as income to the extent it is earned and not subject to a clawback feature. Distributions we receive from unconsolidated real estate joint ventures in excess of our basis in the investment are recorded as offsets to our investment balance if we remain liable for future obligations of the joint venture or may otherwise be committed to provide future additional financial support. None of the joint venture debt is recourse to us, except for $200.0 million which we guarantee at one joint venture and performance guarantees under a master lease at another joint venture. See Note 6.

Restricted Cash

Restricted Cash

        Restricted cash primarily consists of security deposits held on behalf of our tenants, interest reserves, as well as capital improvement and real estate tax escrows required under certain loan agreements.

Deferred Lease Costs

Deferred Lease Costs

        Deferred lease costs consist of fees and direct costs incurred to initiate and renew operating leases and are amortized on a straight-line basis over the related lease term. Certain of our employees provide leasing services to the wholly-owned properties. A portion of their compensation, approximating $9.6 million, $8.6 million and $7.9 million for the years ended December 31, 2011, 2010 and 2009, respectively, was capitalized and is amortized over an estimated average lease term of seven years.

Deferred Financing Costs

Deferred Financing Costs

        Deferred financing costs represent commitment fees, legal, title and other third party costs associated with obtaining commitments for financing which result in a closing of such financing. These costs are amortized over the terms of the respective agreements. Unamortized deferred financing costs are expensed when the associated debt is refinanced or repaid before maturity. Costs incurred in seeking financing transactions, which do not close, are expensed in the period in which it is determined that the financing will not close.

Revenue Recognition

Revenue Recognition

        Rental revenue is recognized on a straight-line basis over the term of the lease. Rental revenue recognition commences when the tenant takes possession or controls the physical use of the leased space. In order for the tenant to take possession, the leased space must be substantially ready for its intended use. To determine whether the leased space is substantially ready for its intended use, management evaluates whether we are or the tenant is the owner of tenant improvements for accounting purposes. When management concludes that we are the owner of tenant improvements, rental revenue recognition begins when the tenant takes possession of the finished space, which is when such tenant improvements are substantially complete. In certain instances, when management concludes that we are not the owner (the tenant is the owner) of tenant improvements, rental revenue recognition begins when the tenant takes possession of or controls the space. When management concludes that we are the owner of tenant improvements for accounting purposes, management records the cost to construct the tenant improvements as a capital asset. In addition, management records the cost of certain tenant improvements paid for or reimbursed by tenants as capital assets when management concludes that we are the owner of such tenant improvements. For these tenant improvements, management records the amount funded or reimbursed by tenants as deferred revenue, which is amortized on a straight-line basis as additional rental revenue over the term of the related lease. When management concludes that the tenant is the owner of tenant improvements for accounting purposes, management records our contribution towards those improvements as a lease incentive, which is included in deferred leasing costs on our consolidated balance sheets and amortized as a reduction to rental revenue on a straight-line basis over the term of the lease. The excess of rents recognized over amounts contractually due pursuant to the underlying leases are included in deferred rents receivable on the accompanying balance sheets. We establish, on a current basis, an allowance for future potential tenant credit losses, which may occur against this account. The balance reflected on the balance sheet is net of such allowance.

        In addition to base rent, our tenants also generally will pay their pro rata share of increases in real estate taxes and operating expenses for the building over a base year. In some leases, in lieu of paying additional rent based upon increases in building operating expenses, the tenant will pay additional rent based upon increases in the wage rate paid to porters over the porters' wage rate in effect during a base year or increases in the consumer price index over the index value in effect during a base year. In addition, many of our leases contain fixed percentage increases over the base rent to cover escalations.

        Electricity is most often supplied by the landlord either on a sub-metered basis, or rent inclusion basis (i.e., a fixed fee is included in the rent for electricity, which amount may increase based upon increases in electricity rates or increases in electrical usage by the tenant). Base building services other than electricity (such as heat, air conditioning and freight elevator service during business hours, and base building cleaning) typically are provided at no additional cost, with the tenant paying additional rent only for services which exceed base building services or for services which are provided outside normal business hours.

        These escalations are based on actual expenses incurred in the prior calendar year. If the expenses in the current year are different from those in the prior year, then during the current year, the escalations will be adjusted to reflect the actual expenses for the current year.

        We record a gain on sale of real estate when title is conveyed to the buyer, subject to the buyer's financial commitment being sufficient to provide economic substance to the sale and we have no substantial economic involvement with the buyer.

        Interest income on debt and preferred equity investments is recognized over the life of the investment using the effective interest method and recognized on the accrual basis. Fees received in connection with loan commitments are deferred until the loan is funded and are then recognized over the term of the loan as an adjustment to yield. Anticipated exit fees, whose collection is expected, are also recognized over the term of the loan as an adjustment to yield. Fees on commitments that expire unused are recognized at expiration.

        Income recognition is generally suspended for debt and preferred equity investments at the earlier of the date at which payments become 90 days past due or when, in the opinion of management, a full recovery of income and principal becomes doubtful. Income recognition is resumed when the loan becomes contractually current and performance is demonstrated to be resumed. Interest is recorded as income on impaired loans only to the extent cash is received. Several of the debt and preferred equity investments provide for accrual of interest at specified rates, which differ from current payment terms. Interest is recognized on such loans at the accrual rate subject to management's determination that accrued interest and outstanding principal are ultimately collectible, based on the underlying collateral and operations of the borrower. If management cannot make this determination, interest income above the current pay rate is recognized only upon actual receipt.

        If we purchase a debt or preferred equity investment at a discount, intend to hold it until maturity and expect to recover the full value of the investment, we accrete the discount into income as an adjustment to yield over the term of the investment. If we purchase a debt or preferred equity investment at a discount with the intention of foreclosing on the collateral, we do not accrete the discount.

        Asset management fees are recognized on a straight-line basis over the term of the asset management agreement.

Allowance for Doubtful Accounts

Allowance for Doubtful Accounts

        We maintain an allowance for doubtful accounts for estimated losses resulting from the inability of our tenants to make required payments. If the financial condition of a specific tenant were to deteriorate, resulting in an impairment of its ability to make payments, additional allowances may be required.

Reserve for Possible Credit Losses

Reserve for Possible Credit Losses

        The expense for possible credit losses in connection with debt and preferred equity investments is the charge to earnings to increase the allowance for possible credit losses to the level that we estimate to be adequate, based on Level 3 data, considering delinquencies, loss experience and collateral quality. Other factors considered relate to geographic trends and product diversification, the size of the portfolio and current economic conditions. Based upon these factors, we establish the provision for possible credit losses on each individual investment. When it is probable that we will be unable to collect all amounts contractually due, the investment is considered impaired.

        Where impairment is indicated on an investment that is held to maturity, a valuation allowance is measured based upon the excess of the recorded investment amount over the net fair value of the collateral. Any deficiency between the carrying amount of an asset and the calculated value of the collateral is charged to expense. The write off of the reserve balance is called a charge off. We recorded approximately $10.9 million, $19.8 million and $38.4 million in loan loss reserves and charge offs during the years ended December 31, 2011, 2010 and 2009, respectively, on investments being held to maturity, and none, $1.0 million and $69.1 million against our held for sale investment during the years ended December 31, 2011, 2010 and 2009, respectively. We also recorded approximately $4.4 million and $3.7 million in recoveries during the years ended December 31, 2011 and 2010, respectively, in connection with the sale of investments.

        Debt and preferred equity investments held for sale are carried at the lower of cost or fair market value using available market information obtained through consultation with dealers or other originators of such investments as well as discounted cash flow models based on Level 3 data pursuant to ASC 820-10. As circumstances change, management may conclude not to sell an investment designated as held for sale. In such situations, the investment will be reclassified at its net carrying value to debt and preferred equity investments held to maturity. For these reclassified investments, the difference between the current carrying value and the expected cash to be collected at maturity will be accreted into income over the remaining term of the investment.

Rent Expense

Rent Expense

        Rent expense is recognized on a straight-line basis over the initial term of the lease. The excess of the rent expense recognized over the amounts contractually due pursuant to the underlying lease is included in the deferred land lease payable in the accompanying balance sheets.

Income Taxes

Income Taxes

        We are taxed as a REIT under Section 856(c) of the Code. As a REIT, we generally are not subject to Federal income tax. To maintain our qualification as a REIT, we must distribute at least 90% of our REIT taxable income to our stockholders and meet certain other requirements. If we fail to qualify as a REIT in any taxable year, we will be subject to Federal income tax on our taxable income at regular corporate rates. We may also be subject to certain state, local and franchise taxes. Under certain circumstances, Federal income and excise taxes may be due on our undistributed taxable income.

        Pursuant to amendments to the Code that became effective January 1, 2001, we have elected, and may in the future, elect to treat certain of our existing or newly created corporate subsidiaries as taxable REIT subsidiaries, or a TRS. In general, a TRS of ours may perform non-customary services for our tenants, hold assets that we cannot hold directly and generally may engage in any real estate or non-real estate related business. Our TRSs' generate income, resulting in Federal income tax liability for these entities. Our TRSs' recorded approximately none, $0.9 million and $1.0 million in Federal, state and local tax (benefit)/expense in 2011, 2010 and 2009 and made estimated tax payments of $0.1 million, $1.0 million and $0.8 million, respectively.

        We follow a two-step approach for evaluating uncertain tax positions. Recognition (step one) occurs when an enterprise concludes that a tax position, based solely on its technical merits, is more-likely-than-not to be sustained upon examination. Measurement (step two) determines the amount of benefit that is more-likely-than-not to be realized upon settlement. Derecognition of a tax position that was previously recognized would occur when a company subsequently determines that a tax position no longer meets the more-likely-than-not threshold of being sustained. The use of a valuation allowance as a substitute for derecognition of tax positions is prohibited.

Underwriting Commissions and Costs

Underwriting Commissions and Costs

        Underwriting commissions and costs incurred in connection with our stock offerings are reflected as a reduction of additional paid-in-capital.

Exchangeable Debt Instruments

Exchangeable Debt Instruments

        The initial proceeds from exchangeable debt that may be settled in cash, including partial cash settlements, must be bifurcated between a liability component and an equity component associated with the embedded conversion option. The objective of the accounting guidance is to require the liability and equity components of exchangeable debt to be separately accounted for in a manner such that the interest expense on the exchangeable debt is not recorded at the stated rate of interest but rather at an effective rate that reflects the issuer's conventional debt borrowing rate at the date of issuance. We calculate the liability component of exchangeable debt based on the present value of the contractual cash flows discounted at our comparable market conventional debt borrowing rate at the date of issuance. The difference between the principal amount and the fair value of the liability component is reported as a discount on the exchangeable debt that is accreted as additional interest expense from the issuance date through the contractual maturity date using the effective interest method. A portion of this additional interest expense may be capitalized to the development and redevelopment balances qualifying for interest capitalization each period. The liability component of the exchangeable debt is reported net of discounts on our consolidated balance sheets. We calculate the equity component of exchangeable debt based on the difference between the initial proceeds received from the issuance of the exchangeable debt and the fair value of the liability component at the issuance date. The equity component is included in additional paid-in-capital, net of issuance costs, on our consolidated balance sheets. We allocate issuance costs for exchangeable debt between the liability and the equity components based on their relative values.

Stock-Based Employee Compensation Plans

Stock-Based Employee Compensation Plans

        We have a stock-based employee compensation plan, described more fully in Note 13.

        The Black-Scholes option-pricing model was developed for use in estimating the fair value of traded options, which have no vesting restrictions and are fully transferable. In addition, option valuation models require the input of highly subjective assumptions including the expected stock price volatility. Because our plan has characteristics significantly different from those of traded options and because changes in the subjective input assumptions can materially affect the fair value estimate, in our opinion, the existing models do not necessarily provide a reliable single measure of the fair value of our employee stock options.

        Compensation cost for stock options, if any, is recognized on a straight line basis over the vesting period of the award. Our policy is to grant options with an exercise price equal to the quoted closing market price of our stock on the grant date. Awards of stock or restricted stock are expensed as compensation over the benefit period based on the fair value of the stock on the grant date.

        For share-based awards with a performance or market measure, we recognize compensation cost over the requisite service period, using the accelerated attribution expense method. The requisite service period begins on the date our Compensation Committee authorizes the award and adopts any relevant performance measures. For programs with market measures, the total estimated compensation cost is based on the fair value of the award at the applicable measurement date estimated using a binomial model. For share-based awards for which there is no pre-established performance measure, we recognize compensation cost over the service vesting period, which represents the requisite service period, on a straight-line basis. In accordance with the provisions of our share-based incentive compensation plans, we accept the return of shares of our common stock, at the current quoted market price, from certain key employee to satisfy minimum statutory tax-withholding requirements related to shares that vested during the period.

        Awards can also be made in the form of a separate series of units of limited partnership interest in our Operating Partnership called long-term incentive plan (LTIP) units. LTIP units, which can be granted either as free-standing awards or in tandem with other awards under our stock incentive plan, are valued by reference to the value of our common stock at the time of grant, and are subject to such conditions and restrictions as our compensation committee may determine, including continued employment or service, computation of financial metrics and/or achievement of pre-established performance goals and objectives.

Derivative Instruments

Derivative Instruments

        In the normal course of business, we use a variety of derivative instruments to manage, or hedge, interest rate risk. We require that hedging derivative instruments are effective in reducing the interest rate risk exposure that they are designated to hedge. This effectiveness is essential for qualifying for hedge accounting. Some derivative instruments are associated with an anticipated transaction. In those cases, hedge effectiveness criteria also require that it be probable that the underlying transaction occurs. Instruments that meet these hedging criteria are formally designated as hedges at the inception of the derivative contract.

        To determine the fair values of derivative instruments, we use a variety of methods and assumptions that are based on market conditions and risks existing at each balance sheet date. For the majority of financial instruments including most derivatives, long-term investments and long-term debt, standard market conventions and techniques such as discounted cash flow analysis, option pricing models, replacement cost, and termination cost are used to determine fair value. All methods of assessing fair value result in a general approximation of value, and such value may never actually be realized.

        In the normal course of business, we are exposed to the effect of interest rate changes and limit these risks by following established risk management policies and procedures including the use of derivatives. To address exposure to interest rates, derivatives are used primarily to fix the rate on debt based on floating-rate indices and manage the cost of borrowing obligations.

        We use a variety of commonly used derivative products that are considered plain vanilla derivatives. These derivatives typically include interest rate swaps, caps, collars and floors. We expressly prohibit the use of unconventional derivative instruments and using derivative instruments for trading or speculative purposes. Further, we have a policy of only entering into contracts with major financial institutions based upon their credit ratings and other factors.

        We may employ swaps, forwards or purchased options to hedge qualifying forecasted transactions. Gains and losses related to these transactions are deferred and recognized in net income as interest expense in the same period or periods that the underlying transaction occurs, expires or is otherwise terminated.

        Hedges that are reported at fair value and presented on the balance sheet could be characterized as cash flow hedges or fair value hedges. Interest rate caps and collars are examples of cash flow hedges. Cash flow hedges address the risk associated with future cash flows of interest payments. For all hedges held by us and which were deemed to be fully effective in meeting the hedging objectives established by our corporate policy governing interest rate risk management, no net gains or losses were reported in earnings. The changes in fair value of hedge instruments are reflected in accumulated other comprehensive income. For derivative instruments not designated as hedging instruments, the gain or loss, resulting from the change in the estimated fair value of the derivative instruments, is recognized in current earnings during the period of change.

Earnings per Share

Earnings per Share

        We present both basic and diluted earnings per share, or EPS. Basic EPS excludes dilution and is computed by dividing net income attributable to common stockholders by the weighted average number of common shares outstanding during the period. Basic EPS includes participating securities, consisting of unvested restricted stock that receive nonforfeitable dividends similar to shares of common stock. Diluted EPS reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock, where such exercise or conversion would result in a lower EPS amount. This also includes units of limited partnership interest. The dilutive effect of the outstanding nonvested shares of common stock ("nonvested shares") and restricted stock units ("RSUs") that have not yet been granted but are contingently issuable under the share-based compensation programs is reflected in the weighted average diluted shares calculation by application of the treasury stock method at the beginning of the quarterly period in which all necessary conditions have been satisfied. The dilutive effect of stock options is reflected in the weighted average diluted outstanding shares calculation by application of the treasury stock method. There is no dilutive effect for the exchangeable senior debentures as the conversion premium will be paid in cash.

Use of Estimates

Use of Estimates

        The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates.

Concentration of Credit Risk

Concentrations of Credit Risk

        Financial instruments that potentially subject us to concentrations of credit risk consist primarily of cash investments, debt and preferred equity investments and accounts receivable. We place our cash investments in excess of insured amounts with high quality financial institutions. The collateral securing our debt and preferred equity investments is primarily located in the New York Metropolitan area. See Note 5. We perform ongoing credit evaluations of our tenants and require most tenants to provide security deposits or letters of credit. Though these security deposits and letters of credit are insufficient to meet the total value of a tenant's lease obligation, they are a measure of good faith and a source of funds to offset the economic costs associated with lost rent and the costs associated with re-tenanting the space. Although the properties in our real estate portfolio are primarily located in Manhattan, we also have properties located in Brooklyn, Queens, Long Island, Westchester County, Connecticut and New Jersey. The tenants located in our buildings operate in various industries. Other than one tenant who accounts for approximately 7.2% of our share of annualized cash rent, no other tenant in our portfolio accounted for more than 6.9% of our annualized cash rent, including our share of joint venture annualized rent, at December 31, 2011. Approximately 8%, 7%, 7% and 10% of our annualized cash rent for consolidated properties was attributable to 919 Third Avenue, 1185 Avenue of the Americas, One Madison Avenue and 1515 Broadway, respectively, for the year ended December 31, 2011. Approximately 10%, 9%, 7%, 7% and 6% of our annualized rent for consolidated properties was attributable to 919 Third Avenue, 1185 Avenue of the Americas, One Madison Avenue, 420 Lexington Avenue and 485 Lexington Avenue, respectively, for the year ended December 31, 2010. Approximately 10%, 9%, 8%, 8%, 6% and 6% of our annualized rent for consolidated properties was attributable to 919 Third Avenue, 1185 Avenue of the Americas, One Madison Avenue, 420 Lexington Avenue, 220 East 42^nd Street and 485 Lexington Avenue, respectively, for the year ended December 31, 2009. In addition, two debt and preferred equity investments accounted for more than 10.0% of the income earned on debt and preferred equity investments during 2011. As of December 31, 2011, approximately 75.0% of our workforce is covered by three collective bargaining agreements. Approximately 76.4% of our workforce which services substantially all of our properties is covered by a collective bargaining agreement which expires in 2015. See Note 15.

Reclassification

Reclassification

        Certain prior year balances have been reclassified to conform to our current year presentation primarily in order to eliminate discontinued operations from income from continuing operations.

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Segment Information (Tables)

12 Months Ended

Dec. 31, 2011

Segment Information

Schedule of selected results of operations and selected asset information

	Real Estate Segment		Debt and Preferred Equity Segment			Total Company
Total revenues
Year ended:
December 31, 2011	$	1,143,010	$	120,418		$	1,263,428
December 31, 2010		936,460		147,926			1,084,386
December 31, 2009		912,753		65,608			978,361
Income from continuing operations before equity in net gain on sale of unconsolidated joint venture/ partial interest and purchase price fair value adjustments:
Year ended:
December 31, 2011	$	22,890	$	101,254		$	124,144
December 31, 2010		27,101		120,585			147,686
December 31, 2009		154,156		(89,659	)		64,497
Total assets
As of:
December 31, 2011	$	12,490,502	$	993,350		$	13,483,852
December 31, 2010		10,330,043		970,251			11,300,294

Schedule of reconciliation of income from continuing operations to net income attributable to SL Green common stockholders

	Years ended December 31,
	2011			2010			2009
Income from continuing operations before equity in net gain on sale of unconsolidated joint venture/ partial interest and purchase price fair value adjustments	$	124,144		$	147,686		$	64,497
Equity in net gain on sale of interest in unconsolidated joint venture/ real estate		2,918			128,921			6,691
Purchase price fair value adjustment		498,195			—			—
Income from continuing operations		625,257			276,607			71,188
Net income from discontinued operations		5,780			7,064			7,318
Gain (loss) on sale of discontinued operations		46,085			35,485			(6,841	)
Net income		677,122			319,156			71,665
Net income attributable to noncontrolling interests in operating partnership		(14,629	)		(4,574	)		(1,221	)
Net income attributable to noncontrolling interests in other partnerships		(15,083	)		(14,007	)		(12,900	)
Net income attributable to SL Green		647,410			300,575			57,544
Preferred stock dividends		(30,178	)		(29,749	)		(19,875	)
Net income attributable to SL Green common stockholders	$	617,232		$	270,826		$	37,669

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Related Party Transactions

12 Months Ended

Dec. 31, 2011

Related Party Transactions

Related Party Transactions

12. Related Party Transactions

Cleaning/ Security/ Messenger and Restoration Services

        Through Alliance Building Services, or Alliance, First Quality Maintenance, L.P., or First Quality, provides cleaning, extermination and related services, Classic Security LLC provides security services, Bright Star Couriers LLC provides messenger services, and Onyx Restoration Works provides restoration services with respect to certain properties owned by us. Alliance is partially owned by Gary Green, a son of Stephen L. Green, the chairman of our board of directors. In addition, First Quality has the non-exclusive opportunity to provide cleaning and related services to individual tenants at our properties on a basis separately negotiated with any tenant seeking such additional services. The Service Corporation has entered into an arrangement with Alliance whereby it will receive a profit participation above a certain threshold for services provided by Alliance to certain tenants at certain buildings above the base services specified in their lease agreements. Alliance paid the Service Corporation approximately $2.7 million, $2.2 million and $1.8 million for the years ended December 31, 2011, 2010 and 2009, respectively. We paid Alliance approximately $16.1 million, $14.2 million and $14.9 million for three years ended December 31, 2011, respectively, for these services (excluding services provided directly to tenants).

Leases

        Nancy Peck and Company leases 1,003 square feet of space at 420 Lexington Avenue under a lease that ends in August 2015. Nancy Peck and Company is owned by Nancy Peck, the wife of Stephen L. Green. The rent due pursuant to the lease is $35,516 per annum for year one increasing to $40,000 in year seven.

Brokerage Services

        Cushman & Wakefield Sonnenblick-Goldman, LLC, or Sonnenblick, a nationally recognized real estate investment banking firm, provided mortgage brokerage services to us. Mr. Morton Holliday, the father of Mr. Marc Holliday, was a Managing Director of Sonnenblick at the time of the financings. In 2009, we paid approximately $428,000 to Sonnenblick in connection with the purchase of a sub-leasehold interest and the refinancing of 420 Lexington Avenue.

Management Fees

        S.L. Green Management Corp., a consolidated entity, receives property management fees from an entity in which Stephen L. Green owns an interest. The aggregate amount of fees paid to S.L. Green Management Corp. from such entity was approximately $420,300 in 2011, $390,700 in 2010 and $351,700 in 2009.

Other

        Amounts due from related parties at December 31, 2011 and 2010 consisted of the following (in thousands):

	2011		2010
Due from joint ventures	$	477	$	1,062
Other		3,524		5,233
Related party receivables	$	4,001	$	6,295

Gramercy Capital Corp.

        See Note 6, "Investment in Unconsolidated Joint Ventures—Gramercy Capital Corp.," for disclosure on related party transactions between Gramercy and the Company.

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Financial Instruments: Derivatives and Hedging

12 Months Ended

Dec. 31, 2011

Financial Instruments: Derivatives and Hedging

Financial Instruments: Derivatives and Hedging

17. Financial Instruments: Derivatives and Hedging

        We recognize all derivatives on the balance sheet at fair value. Derivatives that are not hedges must be adjusted to fair value through earnings. If a derivative is a hedge, depending on the nature of the hedge, changes in the fair value of the derivative will either be offset against the change in fair value of the hedged asset, liability, or firm commitment through earnings, or recognized in other comprehensive income until the hedged item is recognized in earnings. The ineffective portion of a derivative's change in fair value will be immediately recognized in earnings. Reported net income and equity may increase or decrease prospectively, depending on future levels of interest rates and other variables affecting the fair values of derivative instruments and hedged items, but will have no effect on cash flows.

        The following table summarizes the notional and fair value of our derivative financial instruments and foreign currency hedges at December 31, 2011 based on Level 2 information pursuant to ASC 810-10. The notional value is an indication of the extent of our involvement in these instruments at that time, but does not represent exposure to credit, interest rate or market risks (in thousands).

	Notional Value		Strike Rate	Effective Date		Expiration Date		Fair Value
Interest Rate Cap	$	110,180	6.000%		2/2011		2/2012	$	—
Interest Rate Cap	$	139,672	5.000%		1/2011		1/2012	$	—
Interest Rate Swap	$	30,000	2.295%		7/2010		6/2016	$	(1,716	)
Currency Hedge	$	20,748	1.55185GBP-USD		9/2010		12/2012	$	(151	)

        The currency hedge and certain interest rate caps are not designated as a hedging instrument and changes in the value are marked to market through earnings.

        On December 31, 2011, the derivative instruments were reported as an obligation at their fair value of approximately $1.9 million. This is included in Other Liabilities on the consolidated balance sheet at December 31, 2011. Included in Accumulated Other Comprehensive Loss at December 31, 2011 was approximately $18.0 million from the settlement of hedges, which are being amortized over the remaining term of the related mortgage obligation, and active hedges in addition to our share of joint venture accumulated other comprehensive loss of approximately $17.4 million. Currently, all of our designated derivative instruments are effective hedging instruments.

        In March 2010, we terminated forward swaps which resulted in a net loss of approximately $19.5 million from the settlement of the hedges. This payment is included in financing activities in the statement of cash flows. This loss will be amortized over the 10-year term of the related financing. This loss is included in the $18.0 million balance noted above. The balance in accumulated other comprehensive loss relating to derivatives was $35.4 million and $32.3 million at December 31, 2011 and 2010, respectively.

        Over time, the realized and unrealized gains and losses held in Accumulated Other Comprehensive Loss will be reclassified into earnings as a reduction to interest expense in the same periods in which the hedged interest payments affect earnings. We estimate that approximately $1.7 million of the current balance held in Accumulated Other Comprehensive Income will be reclassified into earnings within the next 12 months.

        We are hedging exposure to variability in future cash flows for forecasted interest payments in addition to anticipated future interest payments on existing debt.

        The following table presents the effect of our derivative financial instruments and our share of our joint venture's derivative financial instruments on the Statements of Income as of December 31, 2011, 2010 and 2009 (in thousands):

		Amount of (Loss) or Gain Recognized in Other Comprehensive Loss (Effective Portion) For the Year Ended December 31,									Amount of (Loss) or Gain Reclassified from Accumulated Other Comprehensive Loss into Interest Expense/ Equity in net income of unconsolidated joint ventures (Effective Portion) For the Year Ended December 31,									Amount of (Loss) or Gain Recognized in Interest Expense (Ineffective Portion) For the Year Ended
Designation\Cash Flow	Derivative	2011			2010			2009			2011			2010			2009			2011			2010			2009
Qualifying	Interest Rate Swaps/Caps	$	(16,049	)	$	(17,619	)	$	(15,560	)	$	(12,625	)	$	(12,661	)	$	(12,293	)	$	(16	)	$	(1,329	)	$	(1	)
Non-qualifying	Interest Rate Caps/Currency Hedges		—			—			—			—			—			—		$	(82	)		—			—

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Schedule III-Real Estate And Accumulated Depreciation (Details 2) (USD $)	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
Changes in real estate
Balance at beginning of year	$ 8,890,064,000	$ 8,257,100,000	$ 8,201,789,000
Property acquisitions	2,276,308,000	703,721,000	16,059,000
Improvements	162,875,000	97,099,000	92,117,000
Retirements/disposals/deconsolidation	(182,096,000)	(167,856,000)	(52,865,000)
Balance at end of year	11,147,151,000	8,890,064,000	8,257,100,000
Aggregate cost of land, buildings and improvements, before depreciation, for Federal income tax purposes	7,800,000,000
Changes in accumulated depreciation, exclusive of amounts relating to equipment, autos, and furniture and fixtures
Balance at beginning of year	916,293,000	738,422,000	546,545,000
Depreciation for year	245,421,000	209,472,000	210,436,000
Retirements/disposals/deconsolidation	(25,111,000)	(31,601,000)	(18,559,000)
Balance at end of year	$ 1,136,603,000	$ 916,293,000	$ 738,422,000

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Commitments and Contingencies (Tables)

12 Months Ended

Dec. 31, 2011

Commitments and Contingencies

Schedule of future minimum lease payments under capital leases and noncancellable operating leases

December 31,	Capital lease			Non-cancellable operating leases
2012	$	1,555		$	33,429
2013		1,555			33,429
2014		1,555			33,429
2015		1,592			33,429
2016		1,707			33,533
Thereafter		42,351			615,450
Total minimum lease payments		50,315		$	782,699
Less amount representing interest		(33,203	)
Present value of net minimum lease payments	$	17,112

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Deferred Costs (Tables)

12 Months Ended

Dec. 31, 2011

Deferred Costs

Schedule of components of deferred costs

	2011			2010
Deferred financing	$	113,620		$	86,256
Deferred leasing		238,394			200,633
		352,014			286,889
Less accumulated amortization		(141,228	)		(114,372	)
Deferred costs, net	$	210,786		$	172,517

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Consolidated Statements of Income (Parenthetical) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
Consolidated Statements of Income
Operating expenses, paid to affiliates	$ 16,126	$ 14,234	$ 14,882

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Segment Information (Details) (USD $)	3 Months Ended								12 Months Ended
	Dec. 31, 2011	Sep. 30, 2011	Jun. 30, 2011	Mar. 31, 2011	Dec. 31, 2010	Sep. 30, 2010	Jun. 30, 2010	Mar. 31, 2010	Dec. 31, 2011 segment	Dec. 31, 2010	Dec. 31, 2009
Segment Information
Number of reportable segments									2
Segment information
Total revenues	$ 328,877,000	$ 306,624,000	$ 298,705,000	$ 329,222,000	$ 262,785,000	$ 319,149,000	$ 251,684,000	$ 250,768,000	$ 1,263,428,000	$ 1,084,386,000	$ 978,361,000
Income from continuing operations before equity in net gain on sale of unconsolidated joint venture/ partial interest and purchase price fair value adjustments									124,144,000	147,686,000	64,497,000
Total assets	13,483,852,000				11,300,294,000				13,483,852,000	11,300,294,000
Leverage rate assumption (as a percent)									100.00%
Marketing, general and administrative expenses and transaction related costs									85,700,000	87,800,000	74,000,000
Real Estate Segment
Segment information
Total revenues									1,143,010,000	936,460,000	912,753,000
Income from continuing operations before equity in net gain on sale of unconsolidated joint venture/ partial interest and purchase price fair value adjustments									22,890,000	27,101,000	154,156,000
Total assets	12,490,502,000				10,330,043,000				12,490,502,000	10,330,043,000
Debt and Preferred Equity Segment
Segment information
Total revenues									120,418,000	147,926,000	65,608,000
Income from continuing operations before equity in net gain on sale of unconsolidated joint venture/ partial interest and purchase price fair value adjustments									101,254,000	120,585,000	(89,659,000)
Total assets	$ 993,350,000				$ 970,251,000				$ 993,350,000	$ 970,251,000

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Organization and Basis of Presentation

12 Months Ended

Dec. 31, 2011

Organization and Basis of Presentation

Organization and Basis of Presentation

1. Organization and Basis of Presentation

        SL Green Realty Corp., also referred to as the Company or SL Green, a Maryland corporation, and SL Green Operating Partnership, L.P., or the Operating Partnership, a Delaware limited partnership, were formed in June 1997 for the purpose of combining the commercial real estate business of S.L. Green Properties, Inc. and its affiliated partnerships and entities. The Operating Partnership received a contribution of interest in the real estate properties, as well as 95% of the economic interest in the management, leasing and construction companies which are referred to as the Service Corporation, a consolidated variable interest entity. All of the management, leasing and construction services with respect to the properties wholly-owned by us are conducted through SL Green Management LLC which is 100% owned by our Operating Partnership. The Company has qualified, and expects to qualify in the current fiscal year, as a real estate investment trust, or REIT, under the Internal Revenue Code of 1986, as amended, or the Code, and operates as a self-administered, self-managed REIT. A REIT is a legal entity that holds real estate interests and, through payments of dividends to stockholders, is permitted to reduce or avoid the payment of Federal income taxes at the corporate level. Unless the context requires otherwise, all references to the "Company," "we," "our" and "us" means the Company and all entities owned or controlled by the Company, including the Operating Partnership.

        Substantially all of our assets are held by, and our operations are conducted through, the Operating Partnership. The Company is the sole managing general partner of the Operating Partnership. As of December 31, 2011, noncontrolling investors held, in the aggregate, a 3.12% limited partnership interest in the Operating Partnership. We refer to this as the noncontrolling interests in the Operating Partnership. See Note 14.

        Reckson Operating Partnership, L.P., or ROP, is a subsidiary of our Operating Partnership.

        As of December 31, 2011, we owned the following interests in commercial office properties in the New York Metropolitan area, primarily in midtown Manhattan, a borough of New York City, or Manhattan. Our investments in the New York Metropolitan area also include investments in Brooklyn, Queens, Long Island, Westchester County, Connecticut and New Jersey, which are collectively known as the Suburban assets:

Location	Ownership	Number of Properties		Square Feet		Weighted Average Occupancy(1)
Manhattan	Consolidated properties		26		18,429,945		92.8	%
	Unconsolidated properties		7		6,191,673		91.6	%
Suburban	Consolidated properties		25		3,863,000		80.5	%
	Unconsolidated properties		6		2,941,700		93.8	%
			64		31,426,318		91.2	%

⁽¹⁾

The weighted average occupancy represents the total leased square feet divided by total available rentable square feet.

        We also owned investments in nine stand-alone retail properties encompassing approximately 349,282 square feet, seven development properties encompassing approximately 1,395,838 square feet and three land interests as of December 31, 2011. In addition, we manage three office properties owned by third parties and affiliated companies encompassing approximately 0.9 million rentable square feet.

Partnership Agreement

        In accordance with the partnership agreement of the Operating Partnership, or the operating partnership agreement, we allocate all distributions and profits and losses in proportion to the percentage ownership interests of the respective partners. As the managing general partner of the Operating Partnership, we are required to take such reasonable efforts, as determined by us in our sole discretion, to cause the Operating Partnership to distribute sufficient amounts to enable the payment of sufficient dividends by us to avoid any Federal income or excise tax at the Company level. Under the operating partnership agreement, each limited partner has the right to redeem units of limited partnership interests for cash, or if we so elect, shares of our common stock on a one-for-one basis.

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Significant Accounting Policies (Details 3) (USD $)	12 Months Ended
	Dec. 31, 2011 y	Dec. 31, 2010	Dec. 31, 2009
Deferred Lease Costs
Portion of compensation capitalized	$ 9,600,000	$ 8,600,000	$ 7,900,000
Estimated average lease term (in years)	7
Joint venture
Investment in Unconsolidated Joint Ventures
Amortization period of difference between carrying amount of investments and underlying equity in net assets (in years)	10
Recourse debt	$ 200,000,000
Number of joint ventures with debt recourse	1

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Noncontrolling Interests in Operating Partnership (Details) (USD $) In Thousands, except Share data, unless otherwise specified	1 Months Ended	12 Months Ended
	Nov. 30, 2011	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
Rollforward analysis of the activity relating to the noncontrolling interests in the operating partnership
Balance at the beginning of period		$ 84,338	$ 84,618
Distributions		(143,579)	(13,494)	(19,617)
Redemption of units			(6,521)
Net income		14,629	4,574	1,221
Balance at the end of period		195,030	84,338	84,618
Number of units of 6.0% Series H preferred units issued	80,000
Dividend rate on 6.0% Series H preferred units (as a percent)	6.00%
Liquidation preference of 6.0% Series H preferred units (in dollars per share)	$ 25.00
Annual dividends on 6.0% Series H preferred units (in dollars per share)	$ 1.50
SL Green Operating Partnership
Organization
Noncontrolling interest in the operating partnership (as a percent)		3.12%	1.57%
Number of units of operating partnership owned by the noncontrolling interest unit holders		2,764,737	1,249,274
Shares of common stock reserved for issuance upon redemption of units of limited partnership interest in operating partnership		2,764,737
Rollforward analysis of the activity relating to the noncontrolling interests in the operating partnership
Balance at the beginning of period		84,338	84,618
Distributions		(1,264)	(511)
Issuance of units		60,443	2,874
Redemption of units		(865)	(25,104)
Net income		14,629	4,574
Accumulated other comprehensive income (loss) allocation		(291)	(1,061)
Fair value adjustment		38,040	18,948
Balance at the end of period		$ 195,030	$ 84,338

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Investment in Unconsolidated Joint Ventures (Details 3) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
Assets
Commercial real estate property, net	$ 10,010,548	$ 7,973,771
Other assets	737,900	819,443
Liabilities and members' equity
Mortgages and other loans payable	4,314,741	3,400,468
Company's net investment in unconsolidated joint ventures	893,933	631,570
Combined statements of income for the unconsolidated joint ventures
Operating expense	263,709	224,693	209,272
Real estate taxes	174,454	145,830	136,636
Transaction related costs	5,561	11,849
Interest expense, net of interest income	285,917	230,648	232,655
Depreciation and amortization	292,311	240,445	235,200
Total expenses	1,140,848	972,147	1,062,352
Company's equity in net income of unconsolidated joint ventures	1,583	39,607	62,878
Joint venture
Assets
Commercial real estate property, net	5,699,113	4,831,897
Other assets	599,596	516,049
Total assets	6,298,709	5,347,946
Liabilities and members' equity
Mortgages and other loans payable	4,131,890	3,712,235
Other liabilities	250,925	233,463
Members' equity	1,915,894	1,402,248
Total liabilities and equity	6,298,709	5,347,946
Company's net investment in unconsolidated joint ventures	893,933	631,570
Combined statements of income for the unconsolidated joint ventures
Total revenues	480,935	593,159	689,087
Operating expense	75,513	94,515	120,215
Real estate taxes	51,511	66,588	84,827
Transaction related costs	2,665	1,105
Interest expense, net of interest income	223,400	224,766	208,295
Depreciation and amortization	137,070	141,284	156,470
Total expenses	490,159	528,258	569,807
Net (loss) income before gain on sale	(9,224)	64,901	119,280
Company's equity in net income of unconsolidated joint ventures	$ 1,583	$ 39,607	$ 62,878

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Environmental Matters

12 Months Ended

Dec. 31, 2011

Environmental Matters

Environmental Matters

18. Environmental Matters

        Our management believes that the properties are in compliance in all material respects with applicable Federal, state and local ordinances and regulations regarding environmental issues. Management is not aware of any environmental liability that it believes would have a materially adverse impact on our financial position, results of operations or cash flows. Management is unaware of any instances in which it would incur significant environmental cost if any of the properties were sold.

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Fair Value of Financial Instruments (Details) (USD $)	Dec. 31, 2011	Dec. 31, 2010
Fair Value of Financial Instruments
Fixed rate debt	$ 4,800,000,000
Floating rate debt	1,300,000,000
Estimated fair value of debt and preferred equity investments, low end of range	838,100,000
Estimated fair value of debt and preferred equity investments, high end of range	936,600,000
Debt and preferred equity investments	985,942,000	963,772,000
Level 3
Fair Value of Financial Instruments
Fixed rate debt	5,200,000,000
Floating rate debt	$ 1,200,000,000

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Property Dispositions and Assets Held for Sale (Tables)

12 Months Ended

Dec. 31, 2011

Property Dispositions and Assets Held for Sale

Summary of income from discontinued operations

	Year Ended December 31,
	2011		2010		2009
Revenues
Rental revenue	$	12,636	$	22,912	$	29,221
Escalation and reimbursement revenues		873		4,683		5,740
Other income		60		881		6,750
Total revenues		13,569		28,476		41,711
Operating expense		1,654		7,403		8,969
Real estate taxes		1,033		4,776		5,668
Interest expense, net of interest income		4,253		2,998		4,716
Amortization of deferred financing costs		172		883		883
Depreciation and amortization		676		5,326		6,858
Marketing, general and administrative and transaction related costs		1		26		7,299
Total expenses		7,789		21,412		34,393
Net income from discontinued operations	$	5,780	$	7,064	$	7,318

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Rental Income

12 Months Ended

Dec. 31, 2011

Rental Income

Rental Income

11. Rental Income

        The Operating Partnership is the lessor and the sublessor to tenants under operating leases with expiration dates ranging from January 1, 2012 to 2037. The minimum rental amounts due under the leases are generally either subject to scheduled fixed increases or adjustments. The leases generally also require that the tenants reimburse us for increases in certain operating costs and real estate taxes above their base year costs. Approximate future minimum rents to be received over the next five years and thereafter for non-cancelable operating leases in effect at December 31, 2011 for the consolidated properties, including consolidated joint venture properties, and our share of unconsolidated joint venture properties are as follows (in thousands):

	Consolidated Properties		Unconsolidated Properties
2012	$	955,920	$	199,659
2013		919,388		196,868
2014		843,069		189,078
2015		755,334		184,372
2016		673,792		179,526
Thereafter		3,159,160		829,419
	$	7,306,663	$	1,778,922