NEW YORK, April 29 /PRNewswire/ -- SL Green Realty Corp. (NYSE: SLG)
today reported results for the quarter ended March 31, 1998.
    For the three months ended March 31, 1998, funds from operations (FFO)
before minority interest were $7.3 million, or $0.50 per share, basic and
diluted, on revenues of $22.2 million, compared to pro forma FFO of
$6.2 million, or $0.42 per share, on revenues of $14.1 million, for the
three months ended March 31, 1997, on a pro forma basis.
    1998 revenues increased $8.1 million primarily due to (i) first time
revenue from properties acquired during 1997 after the Company's initial
public offering (IPO) amounted to $5.5 million, (ii) a $2.0 million increase
attributed to properties recently purchased in 1998, (iii) increased
investment income of $0.6 million, primarily attributed to a full quarter's
interest on the 17 Battery Place mortgage and (iv) a $1.2 million increase in
revenue from properties owned or acquired at the Company's IPO, resulting from
increased occupancy.  These improvements were offset by the decrease in other
revenue of $1.5 million, principally the result of one-time lease buy-out by a
tenant at 1372 Broadway.
    The Equity in income from Service Corporations decreased by approximately
$300,000 due to the continuing run-off of third party management fee and lease
commission revenue.
    Total expenses increased primarily in three areas, those costs related to
newly acquired property operating expenses, costs related to marketing,
general and administrative costs and costs related to an increased in interest
expense.  Operating expenses, real property taxes and depreciation and
amortization increased by approximately $2.5 million, $1.3 million and
$670,000, respectively, as a result of properties acquired since the IPO which
were not owned during a similar quarter.  Marketing, general and
administrative costs increased by $300,000, generally as a result of higher
than anticipated public entity costs and increased employee expense as a
result of increases in the Company's overall real property portfolio.
Interest expense increased by $2.0 million, principally as a result of the new
acquisitions completed during 1997 and 1998.  Included in the interest expense
variance was $200,000 related to borrowings of $17 million for the
non-interest bearing purchase deposit for the Helmsley portfolio.
    Since the Company's IPO in August 1997, SL Green has acquired six
properties and contracted to purchase four additional properties at a purchase
price of approximately $370 million, adding 3.8 million square feet to its
portfolio.  All of these acquisitions, except two, have been made in three of
Manhattan's strongest markets, including the Grand Central District, the Times
Square Redevelopment area and the emerging niche market along 43rd and 44th
Streets, between Avenue of the Americas and Grand Central Terminal.  The
remaining two properties are located in the lower Manhattan Financial District
and Brooklyn.
    Grand Central Terminal is a central transportation hub that is presently
undergoing extensive renovations, including the development of new retail
stores, restaurants and attractive public spaces designed to make the Terminal
a destination, not just a conduit, for people.  In line with this development,
the business district surrounding the Terminal is experiencing significant
revitalization and economic growth, and SL Green has acquired properties in
prime locations within the district, beginning in September 1997 with the
251,000-square-foot property at 110 East 42nd Street, a five-story historic
banking facility and adjoining 18-story office building ideally situated
across the street from Grand Central Terminal.  Continuing to capitalize on
opportunities in the Grand Central District, in December 1997, SL Green
acquired retail condominium units encompassing approximately 41,000 square
feet of space at 633 Third Avenue, on the corner of Third Avenue and 41st
Street (previously owned by Murray Hill Properties), just one block from Grand
Central Terminal.
    Also in 1997, the Company purchased an interest in 17 Battery Place in the
lower Manhattan Financial District, where it is undertaking a major
redevelopment project in conjunction with another developer.  SL Green will
reposition approximately two-thirds of this property as Class B office space,
while the remainder of the property will be converted to a hotel by another
developer.
    In March 1998, the Company acquired from the Helmsley organization the
long-term operating position at 420 Lexington Avenue (The Graybar Building),
which adjoins Grand Central Terminal, and the fee interest at 1466 Broadway, a
16-story landmark sportswear showroom building located at the corner of 42nd
Street and Broadway, in the heart of the Times Square Redevelopment area.
Adjoining Times Square, the Company also acquired in March 321 West 44th
Street, a 10-story, 203,000 square foot midtown office building constructed in
1929.
    During April, the Company contracted to purchase three buildings which are
currently managed by Murray Hill Properties.  These include 440 Ninth Avenue
and 38 East 30th Street, both in Manhattan, and 116 Nassau Street, located in
downtown Brooklyn -- comprising a combined total of 530,000 square feet of
office and retail space.
    The 18-story, 339,000 square foot property at 440 Ninth Avenue is situated
at 35th Street and Ninth Avenue, in the heart of the redeveloping Pennsylvania
Station area.  The building is currently 75% leased, with major tenants
including Duane Reade, Holmes Protection and Self-Help Community Services,
Incorporated.  The 12-story, 91,000 square foot building at 38 East 30th
Street, located in the Park Avenue South/Flatiron District, is currently 93%
leased, with the only vacancy being 6,000 square feet of space on the ground
floor.  The main tenant in the building is Color By Pergament, which has a
long-term lease on 36,000 square feet.  The 100,000 square foot, 7-story
building at 116 Nassau Street is located in the heart of downtown Brooklyn.
The property is presently 100% leased by two tenants, The Board of Education
of the City of New York and Federation Employment Guidance Services.
    Most recently, SL Green announced that it has contracted to acquire 50% of
the fee interest and 100% of the operating sub-leasehold of 711 Third Avenue,
a 524,000 square foot building located on Third Avenue between 44th and 45th
Streets, in close proximity to the Grand Central District.
    SL Green is acquiring the fee interest from The Swig Investment Company,
and the existing leasehold mortgage from the New York State Common Retirement
Fund.  The remaining portion of the fee interest is held by The Weiler Arnow
Investment Company.
    The 20-story, post-war building at 711 Third Avenue was the first to be
built on Third Avenue in 1955, after demolition of the Third Avenue El.  The
property counts among its major tenants Eddie Bauer, The Avenue, Dun &
Bradstreet and Parade Publications.  Of its 524,000 square feet of retail and
office space, approximately 78% is currently occupied.
    SL Green Realty is a self-administered and self-managed real estate
investment trust ("REIT") that acquires, owns and manages a Class B Manhattan
office portfolio.  The Company is the only publicly held REIT which
exclusively specializes in this property type.
    This press release contains forward-looking information based upon the
Company's current best judgment and expectations.  Actual results could vary
from those presented herein.  The risks and uncertainties associated with
the forward-looking information include the strength of the commercial office
and industrial real estate markets in which the Company operates competitive
market conditions, general economic growth, interest rates and capital market
conditions.  For further information, please refer to the Company's filings
with the Securities and Exchange Commission.


                            SL GREEN REALTY CORP.
                      STATEMENTS OF OPERATIONS-UNAUDITED
                (Amounts in thousands, except per share data)

                                          Three Months Ended March 31,
                                             1998              1997
                                        (Historical)       (Pro forma)

    Revenue:
     Rental revenue                        $19,428          $11,470
     Escalations & reimbursement revenues    2,128            1,137
     Investment income                         637               --
     Other income                                4            1,497
     Total revenues                         22,197           14,104
     Equity in income from Service Corporations 42              376

    Expenses:
     Operating expenses                      5,664            2,907
     Ground rent                             1,188            1,059
     Interest                                3,494            1,478
     Depreciation and amortization           2,693            1,688
     Real estate taxes                       3,283            2,028
     Marketing, general and administrative   1,038              714
     Total expenses                         17,360            9,874
     Income before minority interest         4,879            4,606
     Minority interest in operating
      partnership                             (790)            (746)

     Net income                             $4,089           $3,860
     Net income per share (Basic)            $0.33            $0.31
     Net income per share (Diluted)          $0.33            $0.31
     Funds From Operations (FFO)            $7,331           $6,208
     FFO per share (Basic)                   $0.50            $0.42
     FFO per share (Diluted)                 $0.50            $0.42

    Calculation of FFO
    (Amounts in thousands)
     Income before minority interest and
      extraordinary item                    $4,879           $4,604
     Add:
      Depreciation and amortization (A)      2,693            1,688
      Amortization of deferred financing
       costs and depreciation of non-real
       estate assets                          (241)             (84)

    FFO                                     $7,331           $6,208
     Basic ownership interests
      REIT common and equivalent shares     12,293           12,293
      Partnership units held by
       minority interest                     2,383            2,383

     Basic weighted average and equivalent
      shares and units outstanding          14,676           14,676
     Diluted ownership interest
      REIT common and equivalent shares     12,404           12,404
      Partnership units held by
       minority interests                    2,383            2,383
     Diluted weighted average and equivalent
      shares and units outstanding          14,787           14,787

    (A) Includes properties recorded on the equity method


                            SL GREEN REALTY CORP.
                    SELECTED BALANCE SHEET DATA-UNAUDITED
         (Amounts in thousands, except operating and percentage data)

                                       March 31, 1998   December 31, 1997

    Real estate assets, before
     depreciation                         $507,701         $313,818
    Cash and cash equivalents               10,625           12,782
    Total assets                           557,165          382,775
    Total liabilities                      347,159          172,661
    Minority interest                       33,862           33,906
    Total owners' equity                   176,146          176,208

    Shares and units outstanding at
     period end                             14,676           14,676

    Operating Data:
     Net rentable area at end of
      period (in 000's)                      5,002            3,322
     Portfolio occupancy percentage at end
      of period                               91.3             99.1 (A)
     Core properties occupancy percentage at
      end of period                           99.3             93.9
     Number of properties in operation          15               12

    (A) Includes core portfolio only

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