Segment Information

6 Months Ended

Jun. 30, 2012

Segment Information

Segment Information

17.  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, “Debt and Preferred Equity Investments,” for additional details on our debt and preferred equity investments.

Selected results of operations for the three and six months ended June 30, 2012 and 2011, and selected asset information as of June 30, 2012 and December 31, 2011, regarding our operating segments are as follows (amounts in thousands):

	Real Estate Segment		Debt and Preferred Equity Segment		Total Company
Total revenues:
Three months ended:
June 30, 2012	$	315,557	$	33,448	$	349,005
June 30, 2011	283,561		15,144		298,705
Six months ended:
June 30, 2012	$	628,411	$	59,786	$	688,197
June 30, 2011	548,104		79,823		627,927
Income from continuing operations before equity in net gain on sale of unconsolidated joint venture and purchase price fair value adjustments:
Three months ended:
June 30, 2012	$	81,910	$	27,013	$	108,923
June 30, 2011	14,358		11,966		26,324
Six months ended:
June 30, 2012	$	82,343	$	47,928	$	130,271
June 30, 2011	28,226		76,328		104,554
Total assets:
As of:
June 30, 2012	$	13,141,444	$	997,669	$	14,139,113
December 31, 2011	12,490,502		993,350		13,483,852

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 allocated loan loss reserves, net of recoveries to the debt and preferred equity segment.  We do not allocate marketing, general and administrative expenses and transaction related costs (approximately $22.7 million, $44.0 million, $23.7 million and $46.1 million for the three and six months ended June 30, 2012 and 2011, 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 three and six months ended June 30, 2012 and 2011 (amounts in thousands):

	Three Months EndedJune 30,						Six Months EndedJune 30,
	2012			2011			2012			2011
Income from continuing operations before equity in net gain on sale of unconsolidated joint venture and purchase price fair value adjustments	$	108,923		$	26,324		$	130,271		$	104,554
Purchase price fair value adjustment	—			475,102			—			488,890
Equity in net gain on sale of interest in unconsolidated joint venture/real estate	9,534			—			16,794			—
Income from continuing operations	118,457			501,426			147,065			593,444
Net income (loss) from discontinued operations	—			1,676			(78		)	3,549
Gain on sale of discontinued operations	—			46,085			6,627			46,085
Net income	118,457			549,187			153,614			643,078
Net income attributable to noncontrolling interests in the operating partnership	(3,421		)	(11,925		)	(4,309		)	(13,776		)
Net income attributable to noncontrolling interests in other partnerships	(3,887		)	(3,259		)	(4,958		)	(6,869		)
Preferred units distributions	(565		)	—			(962		)	—
Net income attributable to SL Green	110,584			534,003			143,385			622,433
Preferred stock dividends	(7,544		)	(7,545		)	(15,089		)	(15,089		)
Net income attributable to SL Green common stockholders	$	103,040		$	526,458		$	128,296		$	607,344