SLG 10-K & 10-Q changes, risk factors and insider trading
Sl Green Realty Corp. (also SLG-PI) · NYSE · Real Estate Investment Trusts · CIK 1040971 · All filings on SEC.gov
At a glance
What changed in the latest 10-K
Risk Factors
Largest changes
Despite system redundancy, the implementation of security measures and the preparation of a disaster data recovery plan, our internal information technology (“IT”) networks and third-party systems on which we rely are vulnerable to a number of risks including energy blackouts, natural disasters, terrorism, war, telecommunication failures and cyber attacks and intrusions, such as phishing attacks, ransomware, data breaches and unauthorized access, including from persons inside our organization or from persons outside our organization with access to oursee in full comparisonsystems.systems, any of which could be enhanced or facilitated by artificial intelligence. The risk of a security breach or disruption, particularly through cyber attacks and intrusions, including by hackers, foreign governments and cyber terrorists, has generally increased as the number, intensity and sophistication of attempted attacks and intrusions from around the world haveincreased.increased, and artificial intelligence could intensify these risks. Like other businesses, we have experienced cyber incidents in the past, which were not individually, or in the aggregate, material, and we may be subject to cyber attacks in the future. Our systems are critical to the operation of our business, as well as certain of our tenants, and a system failure, accident or security breach could result in a material disruption to our business and operations. We have and may also incur additional costs to remedy damages caused by such disruptions. Although we make efforts to maintain the security and integrity of our systems and have implemented various measures designed to manage the risk of a security breach or disruption, there can be no assurance that our security efforts and measures will be effective or that attempted security breaches or disruptions would not be successful or damaging. 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 and relationships with tenants and vendors, loss or misappropriation of data (which may be confidential, proprietary and/or commercially sensitive in nature) and a loss of confidence in our security measures, which could harm our business.
Cash flow could be insufficient to meet the payments of principal and interest required under our current mortgages, our 2021 credit facility, our senior unsecured notes, our debentures and indebtedness outstanding at our joint venture properties. The total principal amount of our outstanding consolidated indebtedness wassee in full comparison$3.6$4.0 billion as of December 31,2024,2025, consisting of $1.2 billion in unsecured bank term loans, $100.0 millionunder our senior unsecured notes, $100.0 millionof junior subordinated deferrable interest debentures,$1.9$2.1 billion of non-recourse mortgages and loans payable on certain of our properties and debt and preferred equity investments and$320.0$640.0 million drawn under our revolving credit facility. In addition, we could increase the amount of our outstanding consolidated indebtedness in the future, in part by borrowing under the revolving credit facility. As of December 31,2024,2025, the total principal amount of indebtedness outstanding at the joint venture properties was$12.3$12.5 billion, of which our proportionate share was$6.0$5.9 billion.
We held consolidated first mortgages, mezzanine loans, junior participations and preferred equity interests with an aggregate net book value ofsee in full comparison$303.7$168.4 million as of December 31,2024.2025. In addition, we may invest in mortgage-backed securities and other marketable securities. Some of these instruments may have some recourse to their sponsors, while others are limited to the collateral securing the loan. In the event of a default under these obligations, we may 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. 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.In addition, we may invest in mortgage-backed securities and other marketable securities.
Numerous states and municipalities have adopted laws and policies on climate change and emission reduction targets. In particular, New York State passed the Climate Leadership and Community Protection Act in 2019, mandating the adoption of a net-zero carbon economy statewide by 2050, with a zero-carbon electricity grid by 2040. New York City enacted Local Law 97 (LL97) in 2019 under the Climate Mobilization Act, setting carbon caps for large buildings starting in 2024 as part of a broader commitment to reducing greenhouse gas emissions by 40% by 2030, and by 80% by 2050. As our portfolio is principally located in Manhattan, our business is subject to transition risks related to these climate change policies. Costs of compliance or penalties in later compliance periods have the potential to be significant. If we are unable to meet the required emissions reductions, we may be subject to material fines that will continue to be assessed each year we fail to comply. Based on current emissions data available fromsee in full comparison2023,2024, our portfolio is expected to be compliant through 2029, with no material financial impact to ourproperties.properties, and were fully compliant for the first reporting year. Additionally, even if we can achieve compliance under LL97 in a given year, it is not a certainty that we will remain in compliance in subsequent years.
Full comparison: every changed paragraph (8)
Our business has been and may continue to be affected by the ongoing volatility in the U.S. financial and credit markets and higher interest rate environments and other market, economic or politicalgeopolitical challenges experienced by the U.S. economy or the real estate industry as a whole, including changes in law and policy and uncertainty in connection with any such changes. Periods of economic weakness or volatility result in reduced access to credit and/or wider credit spreads. Economic or political uncertainty, including concern about growth and the stability of the markets generally and changes in interest rates, have led lenders and institutional investors to reduce and, in some cases, cease to provide funding to borrowers, which adversely affects our liquidity and financial condition, and the liquidity and financial condition of our tenants. Specifically, our business, like other real estate businesses, has been and may continue to be affected by the following conditions:
We are committed to enhancing the resilience of our properties and we have established comprehensive procedures intended to effectively manageidentify, manage, and respond to climate-related risks. Our procedures encompass a range of potential impacts, including those stemming from natural disasters such as storms, heatwaves, hurricanes, flooding and other severe weather. We recognize, however, that the intensity and severity of extreme weather events and the rise in sea levels have the potential to impact our properties, operations and overall business. Since Hurricane Sandy in 2012, New York City has experienced several severe storms that have had significant impacts on the area, and we are actively tracking the risks these storms pose to the city's real estate market and physical landscape. Over time, and in an extreme scenario, these conditions could result in declining demand for office space, specifically in coastal areas of New York City, or potentially an inability to fully operate buildings. Climate change may also have indirect effects on our business by increasing the cost of property insurance on terms we find acceptable or causing a lack of availability of sufficient insurance. There could also be increases in the cost of energy and other natural resources at our properties as we seek to repair and protect our properties against climate risks. We proactively review every building through both a financial and environmental lens to ensure that building systems and operations align with our climate-related risk assessments. However, any of these direct or indirect effects of climate change may have a material adverse effect on our properties, operations or business.
We may incur significant costs to comply with climate change related regulatory initiatives, and in particular those implemented in New York City.
Numerous states and municipalities have adopted laws and policies on climate change and emission reduction targets. In particular, New York State passed the Climate Leadership and Community Protection Act in 2019, mandating the adoption of a net-zero carbon economy statewide by 2050, with a zero-carbon electricity grid by 2040. New York City enacted Local Law 97 (LL97) in 2019 under the Climate Mobilization Act, setting carbon caps for large buildings starting in 2024 as part of a broader commitment to reducing greenhouse gas emissions by 40% by 2030, and by 80% by 2050. As our portfolio is principally located in Manhattan, our business is subject to transition risks related to these climate change policies. Costs of compliance or penalties in later compliance periods have the potential to be significant. If we are unable to meet the required emissions reductions, we may be subject to material fines that will continue to be assessed each year we fail to comply. Based on current emissions data available from 2023,2024, our portfolio is expected to be compliant through 2029, with no material financial impact to our properties.properties, and were fully compliant for the first reporting year. Additionally, even if we can achieve compliance under LL97 in a given year, it is not a certainty that we will remain in compliance in subsequent years.
Cash flow could be insufficient to meet the payments of principal and interest required under our current mortgages, our 2021 credit facility, our senior unsecured notes, our debentures and indebtedness outstanding at our joint venture properties. The total principal amount of our outstanding consolidated indebtedness was $3.6$4.0 billion as of December 31, 2024,2025, consisting of $1.2 billion in unsecured bank term loans, $100.0 million under our senior unsecured notes, $100.0 million of junior subordinated deferrable interest debentures, $1.9$2.1 billion of non-recourse mortgages and loans payable on certain of our properties and debt and preferred equity investments and $320.0$640.0 million drawn under our revolving credit facility. In addition, we could increase the amount of our outstanding consolidated indebtedness in the future, in part by borrowing under the revolving credit facility. As of December 31, 2024,2025, the total principal amount of indebtedness outstanding at the joint venture properties was $12.3$12.5 billion, of which our proportionate share was $6.0$5.9 billion.
We held consolidated first mortgages, mezzanine loans, junior participations and preferred equity interests with an aggregate net book value of $303.7$168.4 million as of December 31, 2024.2025. In addition, we may invest in mortgage-backed securities and other marketable securities. Some of these instruments may have some recourse to their sponsors, while others are limited to the collateral securing the loan. In the event of a default under these obligations, we may 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. 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. In addition, we may invest in mortgage-backed securities and other marketable securities.
Future issuances of common stock, preferred stock or convertibleother debtequity linked securities could dilute existing stockholders' interests.
Despite system redundancy, the implementation of security measures and the preparation of a disaster data recovery plan, our internal information technology (“IT”) networks and third-party systems on which we rely are vulnerable to a number of risks including energy blackouts, natural disasters, terrorism, war, telecommunication failures and cyber attacks and intrusions, such as phishing attacks, ransomware, data breaches and unauthorized access, including from persons inside our organization or from persons outside our organization with access to our systems.systems, any of which could be enhanced or facilitated by artificial intelligence. The risk of a security breach or disruption, particularly through cyber attacks and intrusions, including by hackers, foreign governments and cyber terrorists, has generally increased as the number, intensity and sophistication of attempted attacks and intrusions from around the world have increased.increased, and artificial intelligence could intensify these risks. Like other businesses, we have experienced cyber incidents in the past, which were not individually, or in the aggregate, material, and we may be subject to cyber attacks in the future. Our systems are critical to the operation of our business, as well as certain of our tenants, and a system failure, accident or security breach could result in a material disruption to our business and operations. We have and may also incur additional costs to remedy damages caused by such disruptions. Although we make efforts to maintain the security and integrity of our systems and have implemented various measures designed to manage the risk of a security breach or disruption, there can be no assurance that our security efforts and measures will be effective or that attempted security breaches or disruptions would not be successful or damaging. 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 and relationships with tenants and vendors, loss or misappropriation of data (which may be confidential, proprietary and/or commercially sensitive in nature) and a loss of confidence in our security measures, which could harm our business.
Management's Discussion & Analysis (MD&A)
New heading “Transaction related costs”
New heading “Marketing, General, and Administrative Expenses”
New heading “Gain on sale of marketable securities”
Removed heading “Leasing and Operating”
Removed heading “Acquisition and Disposition Activity”
Removed heading “Debt and Preferred Equity”
Removed heading “Marketing, General and Administrative Expenses”
Removed heading “Dividend Reinvestment and Stock Purchase Plan ("DRSPP")”
Removed heading “Fifth Amended and Restated 2005 Stock Option and Incentive Plan”
Removed heading “Deferred Compensation Plan for Directors”
Removed heading “Employee Stock Purchase Plan”
Removed heading “Related Party Transactions”
Removed heading “One Vanderbilt Avenue Investment”
Removed heading “One Vanderbilt Avenue Leases”
Removed heading “719 Seventh Avenue”
Removed heading “760 Madison Avenue Condominium Unit”
Largest changes
“Fifth Amended and Restated 2005 Stock Option and Incentive Plan”see in full comparison
“Under our Non-Employee Director's Deferral Program, which commenced July 2004, the Company's non-employee directors may elect to defer up to 100% of their annual retainer fee, chairman fees, meeting fees and annual stock grant. Unless otherwise elected by a participant, fees deferred under the program shall be credited in the form of phantom stock units. …”see in full comparison
Full comparison: every changed paragraph (93)
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. A discussion of our results of operations for the year ended December 31, 20232024 compared to the year ended December 31, 20222023 is included in Part II, Item 7 "Management's Discussion and Analysis of Financial Condition and Results of Operations" of our Annual Report on Form 10-K for the year ended December 31, 2023,2024, filed with the SEC on February 23,18, 2024,2025, together with the amendment to such report filed with the SEC on April 17, 2025, and is incorporated by reference into this Annual Report on Form 10-K.
Leasing and Operating
As of December 31, 2024, our same-store Manhattan office property occupancy inclusive of leases signed but not commenced, was 92.5% compared to 90.0% as of December 31, 2023. We signed office leases in Manhattan encompassing approximately 3.6 million square feet, of which approximately 2.3 million square feet represented office leases that replaced previously occupied space.
According to Cushman & Wakefield, 2024 leasing activity in Manhattan totaled approximately 23.4 million square feet. Of the total 2024 leasing activity in Manhattan, the Midtown submarket accounted for approximately 16.7 million square feet, or approximately 71.4%. Manhattan's overall office vacancy went from 22.8% as of December 31, 2023 to 23.3% as of December 31, 2024. Overall average asking rents in Manhattan decreased in 2024 by 0.8% from $73.33 per square foot as of December 31, 2023 to $72.73 per square foot as of December 31, 2024, while Manhattan Class A asking rents increased to $81.19 per square foot, up 0.3% from $80.98 as of December 31, 2023.
Acquisition and Disposition Activity
According to Cushman & Wakefield, overall Manhattan sales volume increased by 7.2% in 2024 to $14.8 billion as compared to $13.8 billion in 2023. In 2024, we continued to sell joint venture interests in quality assets as well as dispose of properties that were considered non-core or had a more limited growth trajectory, raising efficiently priced capital that was used primarily for debt reduction. During the year, we closed on the sales of all or a portion of our interests in 717 Fifth Avenue, 719 Seventh Avenue, 625 Madison Avenue, Palisades Premier Conference Center, One Vanderbilt Avenue, and the Giorgio Armani Residences at 760 Madison Avenue for total gross valuations of $6.4 billion, generating net proceeds to the Company of $500.7 million.
Debt and Preferred Equity
In 2023 and 2024, in our debt and preferred equity portfolio we continued to focus on underwriting financings for owners, acquirers or developers of properties in New York City as well as expanding our special servicing business. At the same time, some investments were repaid, the proceeds of which were utilized for debt repayment, and we converted one investment into equity ownership. Our investment strategy provides us with the opportunity to fill a need for additional debt financing, while achieving attractive risk adjusted returns to us on the investments and receiving a significant amount of additional information on the New York City real estate market. During 2024, our debt and preferred equity portfolio decreased as a result of the repayment of an investment with a carrying value of $64.6 million, offset by $21.6 million of advances under future funding obligations, discount and fee amortization, and paid-in-kind interest, net of premium amortization. This does not include the origination of a $235.4 million preferred equity investment made by the Company and its joint venture partner, which is included in Investment in unconsolidated joint ventures in our consolidated balance sheet.
For descriptions of significant leasing, investing and financing activities in 2024,2025, refer to "Part I, Item 1. Business - Highlights from 2024.2025."
We incur a variety of costs in the development and leasing of our properties. After the determination is made to capitalize a cost, it is allocated to the specific component of a project that is benefited. Determination ofDetermining 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, but are not limited to, 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 completedcomplete and held available for occupancy upon the completion of tenant improvements, but no later than one year after major construction activity ceases. 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.
i.“Same-Store Properties,” which represents allproperties in service and operating propertiesduring ownedboth bythe us at January 1, 2023current and stillprior ownedyear byreporting us in the same manner as of December 31, 2024periods (Same-Store Properties totaled 21 of our 2733 consolidated operating buildings), ii.“Acquisition Properties,” which represents all properties or interests in properties acquired in 20242025 and 20232024 and all non-Same-Store Properties, including properties that are under development or redevelopment, iii."Disposed Properties.Properties," which represents all properties or interests in properties sold in 20242025 and 2023,2024, iv."Alternative Strategy Portfolio," which represents non-core assets, and v.“Other,” which represents properties where we sold an interest resulting in deconsolidation and corporate level items not allocable to specific properties, as well as the Service Corporation and EmergeeEmerge Inc.
Rental revenues increased due primarily to the consolidation of 100 Park Avenue ($25.5 million) during the fourth quarter of 2024, 10 East 53rd Street ($1.7 million) at the end of the first quarter of 2024, 315 West 33rd Street ($4.2 million) at the end of the third quarter of 2025 and 800 Third Avenue ($2.0 million) during the fourth quarter 2025 and the acquisition of 500 Park Avenue ($5.5 million) during the first quarter 2025. The increase is partially offset by lower occupancy at 485 Lexington Avenue ($6.6 million) and 750 Third Avenue ($6.1 million).
Rental revenues decreased due primarily to the deconsolidation of 245 Park Avenue ($77.6 million) as a result of the sale of a joint venture interest during the second quarter of 2023 and increased vacancy at 555 West 57th Street ($10.7 million), 1350 Avenue of the Americas ($4.1 million) and 885 Third Avenue ($3.6 million). The decrease is partially offset by the consolidation of 10 East 53rd Street ($25.2 million) as a result of the agreement to acquire the partner's interest in the joint venture during the first quarter of 2024.
SUMMIT Operator revenues were higherlower for the year ended December 31, 2024,2025, compared to the same period in 20232024 due primarily to increasedtaking attendance.offline the Ascent experience, which requires a premium ticket that generates incremental revenue, for maintenance during most of the year ended December 31, 2025, .
Investment income decreasedincreased due primarily to ainterest payments received on one CMBS investment ($10 million) for the year ended December 31, 2025. This was partially offset by lower weighted average debt and preferred equity investment balance for the period ended December 31, 20242025 as compared to the same period in 2023.2024. For the years ended December 31, 20242025 and 2023,2024, the weighted average balance of our debt and preferred equity investment portfolio and the weighted average yield were $273.6 million and 5.8%, respectively, compared to $328.9 million and 6.9%, respectively, compared to $563.0 million and 6.2%, respectively.
During the yearyears December 31, 2024,2024 and December 31, 2025, we acquired securities in CMBS securitization trusts that resulted in consolidation of the trusts on our financial statements. The amounts recorded include our interest income as well as the interest income associated with CMBS positions owned by third parties, which is offset by the amounts recorded in Interest expense on senior obligations of consolidated securitization vehicles. As a result, the net impact is limited to the interest income on the CMBS securities we own directly and not the consolidated interest income and interest expense. We did not hold any investments in CMBS securitization trusts that resulted in consolidation during the year ended December 31, 2023.
Other income increased due primarily to management fees earned from the Fund ($8.4 million) and an increase in special servicing income ($7.3 million). This increase was offset by a decrease in fee income recognized during the year ended December 31, 2024 related to the sale of 625 Madison Avenue ($11.5 million).
Other income increased due primarily to fee income related to the sale of 625 Madison Avenue ($11.5 million) as well as higher management, leasing, and construction management fee income ($24.6 million) and an increase in special servicing income ($2.9 million). This increase was offset by a decrease in lease termination income ($6.4 million) and fee income related to the 49.9% interest sale of 245 Park Avenue ($4.7 million) and One Madison Avenue ($2.1 million) recognized during the year ended December 31, 2023.
Property operating expenses increased due primarily to the consolidation of 100 Park Avenue ($27.8 million) during the fourth quarter of 2024, 10 East 53rd Street ($4.7 million) at the end of the first quarter of 2024, 315 West 33rd Street ($6.1 million) at the end of the third quarter of 2025 and 800 Third Avenue ($4.1 million) during the fourth quarter of 2025 and the acquisition of 500 Park Avenue ($9.5 million) in the first quarter of 2025. Operating expenses also increased at our Same-Store Properties ($11.7 million) due primarily to higher real estate taxes.
Property operating expenses decreased due primarily to the deconsolidation of 245 Park Avenue in the second quarter of 2023 ($26.8 million) and decreases in variable expenses ($5.3 million) and real estate taxes ($3.3 million) at our Acquired properties. These decreases were partially offset by the consolidation of 10 East 53rd Street ($11.1 million) as a result of the agreement to acquire the partner's interest in the joint venture during the first quarter of 2024.
SUMMIT Operator expenses were higher for the year ended December 31, 2024,2025, compared to the same period in 20232024, due primarily to increased variable expenses, including percentage rent,expenses as a result of increasedadditional attendance.operating days and expanded hours.
The decreaseincrease in SUMMIT Operator tax expense for the year ended December 31, 20242025 as compared to the same period in 20232024 was the result of an adjustment made in the third quarter of 2024 related to 2023 projected tax expense being more than 2023 actual tax expense.
Transaction related costs
Marketing, General and Administrative Expenses
Marketing,Transaction generalrelated andcosts administrative expenses decreased to $85.2 millionincreased for the year ended December 31, 2024,2025 as compared to $111.4 million for the same period in 2023,2024 due primarily to compensationthe expensewrite off of expenses related to the non-renewalCompany's pursuit of thea Company'sgaming former Presidentlicense ($18.7$11.9 million) recorded in the fourth quarter of 2023..
Marketing, General, and Administrative Expenses
Marketing, general, and administrative expenses increased for the year ended December 31, 2025 as compared to the same period in 2024 due primarily to higher compensation expense.
Interest expense and amortization of deferred financing costs, net of interest income, increased due primarily to a higher weighted average consolidated debt balance and higher weighted average interest rate as well as the consolidation of 100 Park Avenue ($25.5 million) during the fourth quarter of 2024, 10 East 53rd Street ($1.7 million) at the end of the first quarter of 2024, 315 West 33rd Street ($4.2 million) at the end of the third quarter of 2025 and 800 Third Avenue ($2.0 million) during the fourth quarter 2025 and the acquisition of 500 Park Avenue ($5.5 million) during the first quarter 2025. The weighted average consolidated debt balance outstanding was $3.9 billion for the year ended December 31, 2025 as compared to $3.7 billion for the year ended December 31, 2024. The consolidated weighted average interest rate was 5.34% for the year ended December 31, 2025 as compared to 5.17% for the year ended December 31, 2024.
Interest expense and amortization of deferred financing costs, net of interest income, increased due primarily to a decrease in interest capitalization in connection with properties that are under development or redevelopment ($35.1 million), increased interest expense from the revolving credit facility ($11.2 million) due to a higher weighted average interest rate, and the consolidation of 10 East 53rd Street ($10.7 million) as a result of the agreement to acquire the partner's interest in the joint venture during the first quarter of 2024. These increases were offset by the deconsolidation of 245 Park Avenue in the second quarter of 2023 ($31.1 million), the repayment of unsecured corporate term loans ($10.1 million) in the third quarter of 2023, the discounted mortgage repayment at 690 Madison Avenue in the fourth quarter of 2024 ($4.3 million), and the sale of 719 Seventh in the second quarter of 2024 ($4.0 million). The weighted average consolidated debt balance outstanding was $3.7 billion for the year ended December 31, 2024 as compared to $4.6 billion for the year ended December 31, 2023. The consolidated weighted average interest rate was 5.17% for the year ended December 31, 2024 as compared to 4.71% for the year ended December 31, 2023.
During the yearyears ended December 31, 2024,2025 and December 31, 2024 we acquired securities in CMBS securitization trusts that resulted in consolidation of the trusts on our financial statements. The amounts include the interest expense associated with CMBS positions owned by third parties, which is an offset to the third party interest income recognized in Interest income from real estate loans held by consolidated securitization vehicles. As a result, the impact is limited to interest income on the CMBS securities we own directly and not the consolidated interest income and interest expense. We did not hold any investments in CMBS securitization trusts that resulted in consolidation during the year ended December 31, 2023.
Depreciation and amortization increased due primarily to the consolidation of 100 Park Avenue ($20.1 million) during the fourth quarter of 2024, 10 East 53rd Street ($4.0 million) at the end of the first quarter of 2024, 315 West 33rd Street ($7.4 million) at the end of the third quarter of 2025 and 800 Third Avenue ($2.0 million) during the fourth quarter of 2025 and the acquisition of 500 Park Avenue ($5.1 million) in the first quarter of 2025 and an increase at our Same-Store Properties ($7.9 million).
Depreciation and amortization decreased due primarily to the deconsolidation of 245 Park Avenue in the second quarter of 2023 ($48.5 million), partially offset by the consolidation of 10 East 53rd Street ($11.3 million) as a result of the agreement to acquire the partner's interest in the joint venture during the first quarter of 2024 for the year ended December 31, 2024.
Equity in net loss from unconsolidated joint ventures increased primarily due primarily to impairments recognized during the year ended December 31, 2024 at 5 Times Square ($146.4 million), Worldwide Plaza ($72.6 million), 2 Herald Square ($20.4 million), 85 Fifth Avenue ($12.0 million) and 115 Spring Street ($11.7 million) during the year ended December 31, 2024.. These impairments were partially offset by the $141.7 million and $30.7 million gains on discounted debt extinguishment at 2 Herald Square ($141.7 million) and 280 Park Avenue,Avenue respectively,($30.7 duringmillion). During the year ended December 31, 2024.2025 The year ended December 31, 2023 included $23.6 million of incomewe recognized forimpairments holdoverat rent,World interestWide Plaza ($4.4 million) and reimbursement of attorneys' fees collected following the completion of legal proceedings against a former tenant and its guarantor at 2 Herald Square.Square ($8.4 million).
During the year ended December 31, 2025, we recognized gains on the sale of an 5% interest in One Vanderbilt ($88.1 million), partially offset by a loss on the sale of our interest in 85 Fifth Avenue ($2.0 million). During the year ended December 31, 2024, we recognized gains on the sale of an 11% interest in One Vanderbilt ($187.6 million) and our interest in 717 Fifth Avenue ($26.4 million), partially offset by a loss on the sale of our interestinterests in 625 Madison Avenue ($7.2 million). During the year ended December 31, 2023, we recognized losses on the sales of our interests in 21 East 66th Street ($12.7 million) and 121 Greene Street ($0.3 million).
During the year ended December 31, 2024,2025, we recorded a $117.8 million positivenegative fair value adjustmentadjustments relatingrelated to the initial valuation of Palisades Conference Center ($13.0 million), the consolidation of 100800 ParkThird Avenue ($20.2 million), and aderivatives $19.6that are not designated as hedges for accounting purposes ($3.9 million). These negative adjustments were partially offset by positive fair value adjustment for the secured borrowing related to the previous sale of an interest at One Madison Avenue.Avenue ($6.2 million). During the year ended December 31, 2024, we recorded positive fair value adjustments relating to the consolidation of 100 Park Avenue ($117.8 million) and for the secured borrowing related to the previous sale of an interest at One Madison Avenue ($19.6 million). Additionally, we recorded a $5.5 million positive fair value adjustment related to derivatives that are not designated as hedges for accounting purposes.purposes ($5.5 million). These positive adjustments were partially offset by a $55.7 million negative fair value adjustment relating to the consolidation of 10 East 53rd Street.Street During the year ended December 31, 2023, we recorded a $17.0($55.7 million negative fair value adjustment relating to the 50.1% interest we retained in 245 Park Avenue, which was deconsolidated when a 49.9% joint venture interest was sold, and a $10.4 million negative fair value adjustment related to derivatives that are not designated as hedges for accounting purposes. This was partially offset by a $10.2 million purchase price adjustment related to a previous transaction.).
Gain(Loss) (loss)gain on sale of real estate, net
During the year ended December 31, 2024, we recognized a gain on the sale of Palisades Conference Center ($7.3 million) and losses on the sales of 719 Seventh Avenue ($2.1 million) and the Giorgio Armani Residences at 760 Madison Avenue ($1.5 million). During the year ended December 31, 2023, we recognized a loss on the sale of a 49.9% joint venture interest in 245 Park Avenue ($32.8 million).
During the year ended December 31, 2025, we recognized depreciable real estate reserves and impairments at 100 Park Avenue ($23.5 million) and 760 Madison Avenue ($8.5 million). During the year ended December 31, 2024, we recognized depreciable real estate reserves and impairments at 719 Seventh Avenue ($46.3 million), 690 Madison Avenue ($34.3 million) and 760 Madison Avenue ($17.6 million), reflective of $15.1 million of capitalized interest for 760 Madison Avenue, to reduce the carrying value of our investments based on the sales contracts that the Company entered into for these properties. In addition, we recognized depreciable real estate reserves and impairments related to our investment in 625 Madison Avenue ($5.9 million), which remained under contract for sale as of March 31, 2024 prior to the sale closing in the second quarter of 2024. During the year ended December 31, 2023, we recognized depreciable real estate reserves and impairments related to our leasehold interest at 625 Madison Avenue ($272.6 million), which was under contract for sale as of December 31, 2023, 2 Herald Square ($101.7 million) and 1552-1560 Broadway ($8.0 million) following an assessment of the investments for recoverability.
Gain on sale of marketable securities
During the year ended December 31, 2025, we recognized a gain on marketable securities sold during the period ($10.2 million). During the year ended December 31, 2024 we did not recognize a gain on marketable securities sold during the period.
During the year ended December 31, 2025, we did not recognize any consolidated gain or loss on early extinguishment of debt. During the year ended December 31, 2024, we recognized a $26.0 million gaingains on discounted debt extinguishment at 690 Madison Avenue and a $17.8($26.0 million) gain on discounted debt extinguishment atand 719 Seventh Avenue.Avenue ($17.8 million).
During the year ended December 31, 2025, we recognized a loan loss recovery of $71.6 million related to the repayment of the mortgage investment at 522 Fifth Avenue. During the year ended December 31, 2024, we did not recognize any loan loss and other investment reserves.
During the year ended December 31, 2024, we did not recognize any loan loss and other investment reserves. During the year ended December 31, 2023, we recorded $6.9 million of loan loss reserve on one debt and preferred equity investment.
For a comparison of the year ended December 31, 20232024 to the year ended December 31, 2022,2023, see "Management's Discussion and Analysis of Financial Condition and Results of Operations" in Part II, Item 7 of our Form 10-K for the year ended December 31, 2023,2024, which was filed with the SEC on February 23,18, 2024.2025, together with the amendment to such Form 10-K filed with the SEC on April 17, 2025.
We currently expect that the principal sources of funds to meet our short-term and long-term liquidity requirements for working capital, acquisitions, development or redevelopment of properties, tenant improvements, leasing costs, dividends to shareholders, distributions to unitholders, repurchases or repayments of outstanding indebtedness andor for debt and preferred equityother investments will include:
Cash flow from operations is primarily dependent upon the collectability of rent, the occupancy level of our portfolio, the net effective rental rates achieved on our leases, the collectability of rent, operating escalations and recoveries from our tenants and the level of operating and other costs. Additionally, we believe that our debt and preferred equity investment program will continue to serve as a source of operating cash flow.
We estimate that for the year ending December 31, 2025,2026, we expect to incur $114.7$99.6 million of leasing capital expenditures and $22.0$33.8 million of recurring capital expenditures on existing consolidated properties.properties, of which $25.6 million will be funded by construction financing facilities or loan reserves. In addition, we expect to incur $22.6$39.8 million of development or redevelopment expenditures on existing consolidated properties, of which $8.9 millionnone will be funded by construction financing facilities or loan reserves. We expect our share of capital expenditures at our joint venture properties will be $134.1$172.4 million, of which $22.6$28.8 million will be funded by construction financing facilities or loan reserves. We expect to fund capital expenditures from operating cash flow, existing liquidity, and borrowings from construction financing facilities. Future property acquisitions may require substantial capital investments for refurbishment and leasing costs.
As of December 31, 2024,2025, we had liquidity of $1.1$781.9 billion,million, comprised of $922.5$602.5 million of availability under our revolving credit facility and $201.6$179.4 million of consolidated cash on hand, inclusive of $17.3$23.7 million of available-for-sale marketable securities. This liquidity excludes $131.6$124.0 million representing our share of cash at unconsolidated joint venture properties. We may seek to divest of properties, interests in properties, or debt and preferred equity investments or 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 and unsecured debt, will allow us to satisfy our debt and other obligations, as described above, upon maturity, if not before.
We have investments in several real estate joint ventures with various partnerspartners, whothat are generally considered to be financially stable.stable, Mostand of our joint venturesmost 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, restricted cash, and cash equivalents were $331.6$336.5 million and $335.5$331.6 million as of December 31, 20242025 and 2023,2024, respectively, representing a decreaseincrease of $3.9$4.9 million. The decreaseincrease was a result of the following changes in cash flows (in thousands):
Funds spent on capital expenditures, which are comprised of building and tenant improvements, decreasedincreased from $259.7 million for the year ended December 31, 2023 to $211.9 million for the year ended December 31, 2024 to $255.6 million for the year ended December 31, 2025 due to lowerincreased spending on developmentleasing andrelated redevelopment properties.costs.
We generally fund our investment activity through the sale of real estate, the sale or repayment of debt and preferred equity investments, property-level financing, our corporate credit facilities, or construction loan facilities. From time to time, the Company may issue common or preferred stock or equity-linked securities, or the Operating Partnership may issue common or preferred units of limited partnership interest.
During the year ended December 31, 2024,2025, when compared to the year ended December 31, 2023,2024, we used cash primarily for the following financing activities (in thousands):
Capitalization
Our authorized capital stock consists of 260,000,000 shares, $0.01 par value per share, consisting of 160,000,000 shares of common stock, $0.01 par value per share, 75,000,000 shares of excess stock, at $0.01 par value per share, and 25,000,000 shares of preferred stock, $0.01 par value per share. As of December 31, 2024, 71,096,743 shares of common stock and no shares of excess stock were issued and outstanding.
In November 2024, the Company completed an offering of 5,063,291 shares of its common stock, par value $0.01 per share, at a price of $79.00 per share. The Company received net proceeds of approximately $386.3 million, after deducting offering expenses. The net proceeds from these offerings were contributed to the Operating Partnership in exchange for 5,063,291 common units of limited partnership interest and were used to repay debt, fund new investments and for other corporate purposes.
OurThe BoardCompany ofhas Directorsin approvedplace a $3.5 billion share repurchase program of $3.5 billion under which we can buy shares of our common stock.
As of December 31, 2024,2025, 36,107,719 shares have been repurchased under the program,program. excludingThis amount excludes the redemption of OP units. We did not repurchase any shares under the program during the year ended December 31, 2024.2025.
Dividend Reinvestment and Stock Purchase Plan ("DRSPP")
In February 2024, the Company filed a new registration statement with the SEC for our dividend reinvestment and stock purchase plan, or DRSPP, which automatically became effective upon filing. The Company registered 3,500,000 shares of our common stock under the DRSPP. The DRSPP commenced on September 24, 2001.
What changed in the latest 10-Q
Risk Factors
As of June 30, 2026, there have been no material changes to the Risk Factors disclosed in "Part I. Item 1A. Risk Factors" in the Company's Annual Report on Form 10-K for the year ended December 31, 2025.
Full comparison: every changed paragraph (1)
As of MarchJune 31,30, 2026, there have been no material changes to the Risk Factors disclosed in "Part I. Item 1A. Risk Factors" in the Company's Annual Report on Form 10-K for the year ended December 31, 2025.
Management's Discussion & Analysis (MD&A)
New heading “Investment income”
New heading “Interest income from real estate loans held by consolidated securitization vehicles”
New heading “Property operating expenses”
New heading “Marketing, general and administrative”
New heading “Interest expense, net of interest income”
New heading “Interest expense on senior obligations of consolidated securitization vehicles”
New heading “Depreciation and amortization”
New heading “Equity in net income (loss) from unconsolidated joint ventures”
New heading “Equity in net loss on sale of interest in unconsolidated joint venture/real estate”
New heading “Income from debt fund investments, net”
New heading “Purchase price and other fair value adjustments”
New heading “(Loss) gain on sale of real estate, net”
New heading “Loan loss and other investment reserves, net of recoveries”
New heading “Gain on sale of marketable securities”
New heading “Comparison of the six months ended June 30, 2026 to the six months ended June 30, 2025”
New heading “Equity in net loss on sale of interest in unconsolidated joint venture/real estate”
New heading “Income from debt fund investments, net”
New heading “Gain on sale of marketable securities”
Removed heading “SUMMIT Operator tax (expense) benefit”
Largest changes
“Comparison of the six months ended June 30, 2026 to the six months ended June 30, 2025”see in full comparison
“Interest income from real estate loans held by consolidated securitization vehicles”see in full comparison
“Equity in net loss on sale of interest in unconsolidated joint venture/real estate”see in full comparison
“Equity in net loss on sale of interest in unconsolidated joint venture/real estate”see in full comparison
“Interest expense on senior obligations of consolidated securitization vehicles”see in full comparison
Full comparison: every changed paragraph (95)
As of MarchJune 31,30, 2026, we owned the following interests in properties in the New York metropolitan area, primarily in midtown Manhattan. Our investments located outside of Manhattan are referred to as the Suburban properties:
(2)As of MarchJune 31,30, 2026, we consolidated a building at 315 West 33rd Street that was comprised of approximately 222,855 square feet (unaudited) of residential space and approximately 270,132 square feet (unaudited) of retail space. For the purpose of this report, we have included this building in the number of residential properties we own. We have included only the residential square footage in total residential square footage, and have included the retail square footage in total retail square footage.
(3)As of March 31, 2026, we owned a building at 7 Dey Street / 185 Broadway that was comprised of approximately 140,382 square feet (unaudited) of residential space and approximately 50,206 square feet (unaudited) of office, which is under redevelopment, and retail space. For the purpose of this report, we have included this building in the number of residential properties we own. We have included only the residential square footage in total residential square footage and have included the balance of the square footage as development square footage. As of March 31, 2026 the residential and retail condominium units were classified as held for sale following the execution of an agreement to sell those units for $220.5 million. See Note 4, "Property Dispositions and Properties Held for Sale."
As of MarchJune 31,30, 2026, we also managed threefour properties owned by third parties encompassing approximately 0.80.9 million square feet (unaudited).
Refer to the 2025 Annual Report on Form 10-K of the Company and the Operating Partnership for a discussion of our critical accounting estimates, which include investment in commercial real estate properties and investment in unconsolidated joint ventures. During the three and six months ended MarchJune 31,30, 2026, there were no material changes to these estimates.
Comparison of the three months ended MarchJune 31,30, 2026 to the three months ended MarchJune 31,30, 2025
The following comparison for the three months ended MarchJune 31,30, 2026, or 2026, to the three months ended MarchJune 31,30, 2025, or 2025, makes reference to the effect of the following:
i.“Same-Store Properties,” which represents properties in service and operating during both the current and prior year reporting periods that are located in Manhattan (Same-Store Properties totaled 1817 of our 3332 consolidated operating propertiesbuildings), ii.“Acquisition Properties,” which represents all properties or interests in properties acquired in 2026 and 2025 and all non-Same-Store Properties, including properties that are under development, redevelopmentdevelopment or were deconsolidated during the period,redevelopment, iii."Disposed Properties," which represents all properties or interests in properties sold or partially sold in 2026 and 2025, iv."Alternative Strategy Portfolio," which represents non-core assets, and v.“Other,” which represents properties thatwhere were partiallywe sold an interest resulting in deconsolidation and corporate level items not allocable to specific properties, as well as the Service Corporation and eEmerge Inc.
Rental revenues increased due primarily to the acquisition of Park Avenue Tower ($15.6$18.4 million) during the first quarter of 2026, the consolidation of 800315 ThirdWest Avenue33rd Street ($8.6$9.1 million) during the fourththird quarter of 2025, and the consolidation of 315800 WestThird 33rd StreetAvenue ($9.0$8.8 million) during the thirdfourth quarter of 2025. Additionally, there was an increase in rental revenue from our Same-Store Properties, excluding 100 Park Avenue, of $1.2 million due to an increase in economic occupancy. This increase is partially offset by the deconsolidation of 100 Park Avenue ($10.0$10.1 million) at the end of the fourth quarter of 2025.
Investment income
Investment income decreased due primarily to a lower weighted average debt and preferred equity investment balance for the three months ended June 30, 2026, as compared to the same period in 2025. For the three months ended June 30, 2026, the weighted average debt and preferred equity investment balance outstanding and weighted average yield were $113.1 million and 7.5%, respectively, as compared to $319.9 million and 5.6%, respectively, for the three months ended June 30, 2026.
Interest income from real estate loans held by consolidated securitization vehicles
From time to time we own securities in CMBS securitization trusts that result in the consolidation of the trusts on our financial statements. The amounts recorded include our interest income as well as the interest income associated with CMBS positions owned by third parties, which is offset by the amounts recorded in "Interest expense on senior obligations of consolidated securitization vehicles." As a result, the net impact is limited to the interest income on the CMBS we own directly and not the consolidated interest income and interest expense.
Fee income
Fee income increased due primarily to fees received in conjunction with the partial sale of 346 Madison Avenue ($4.2 million) and the sale of 7 Dey Street ($2.1 million).
Property operating expenses
Property operating expenses increased due primarily to the acquisition of Park Avenue Tower ($6.4 million) during the first quarter of 2026, the consolidation of 800 Third Avenue ($5.2 million) during the fourth quarter of 2025, and the consolidation of 315 West 33rd Street ($4.7 million) during the third quarter of 2025. This increase is partially offset by the deconsolidation of 100 Park Avenue ($6.4 million) at the end of the fourth quarter of 2025.
Marketing, general and administrative
Marketing, general, and administrative expenses increased due primarily to higher compensation expenses.
Interest expense, net of interest income
Interest expense, net of interest income, increased due primarily to the acquisition of Park Avenue Tower ($6.9 million) during the first quarter of 2026, the consolidation of 315 West 33rd Street ($3.1 million) during the third quarter of 2025, and the consolidation of 800 Third Avenue ($2.6 million) during the fourth quarter of 2025. These increases were offset by decreased interest expense from the deconsolidation of 100 Park Avenue ($6.3 million) at the end of the fourth quarter of 2025. The weighted average debt balance outstanding was $4.7 billion for three months ended June 30, 2026, compared to $3.8 billion for the three months ended June 30, 2025. The consolidated weighted average interest rate was 5.21% for the three months ended June 30, 2026, as compared to 5.38% for the three months ended June 30, 2025.
Interest expense on senior obligations of consolidated securitization vehicles
From time to time we own securities in CMBS securitization trusts that result in the consolidation of the trusts on our financial statements. The amounts include the interest expense associated with CMBS positions owned by third parties, which is an offset to the third-party interest income recognized in Interest income from real estate loans held by consolidated securitization vehicles. As a result, the impact is limited to interest income on the CMBS we own directly and not the consolidated interest income and interest expense.
Depreciation and amortization
Depreciation and amortization increased due primarily to the acquisition of Park Avenue Tower ($8.3 million) during the first quarter of 2026, the consolidation of 800 Third Avenue ($2.9 million) during the fourth quarter of 2025, and the consolidation of 315 West 33rd Street ($2.2 million) during the third quarter of 2025. This increase is partially offset by the deconsolidation of 100 Park Avenue ($4.9 million) at the end of the fourth quarter of 2025.
Equity in net income (loss) from unconsolidated joint ventures
During the three months ended June 30, 2026, we recognized $26.6 million of income related to a reduction in the negative carrying value of an unconsolidated joint venture.
Equity in net loss on sale of interest in unconsolidated joint venture/real estate
During the three months ended June 30, 2026, we did not dispose of any interests in unconsolidated joint ventures. During the three months ended June 30, 2025, we recognized a loss on the sale of our interest in 85 Fifth Avenue ($1.9 million).
Income from debt fund investments, net
Income from debt fund investments increased due primarily to the continued deployment of capital in the Fund, resulting in a higher average invested balance and an increase in the fair value of its investments from $41.4 million at June 30, 2025 to $379.0 million at June 30, 2026.
Purchase price and other fair value adjustments
During the three months ended June 30, 2026, we recorded a $5.0 million positive fair value adjustment related to the deconsolidation of 346 Madison Avenue. During the three months ended June 30, 2025, we recorded a $13.0 million negative fair value adjustment related to the initial valuation of Palisades Conference Center and a $1.2 million negative fair value adjustment related to derivatives that are not designated as hedges for accounting purposes.
(Loss) gain on sale of real estate, net
During the three months ended June 30, 2026, we recognized a loss of $4.2 million on the sale of 7 Dey Street, offset by a gain of $1.3 million on the sale of a 49% interest in 346 Madison Avenue.
Loan loss and other investment reserves, net of recoveries
During the three months ended June 30, 2025, we recognized a loan loss recovery of $46.6 million related to the repayment of the commercial mortgage investment at 522 Fifth Avenue.
Gain on sale of marketable securities
During the three months ended June 30, 2025, we recognized a gain on the sale of marketable securities of $10.2 million.
Comparison of the six months ended June 30, 2026 to the six months ended June 30, 2025
The following comparison for the six months ended June 30, 2026, or 2026, to the six months ended June 30, 2025, or 2025, makes reference to the effect of the following:
i.“Same-Store Properties,” which represents properties in service and operating during both the current and prior year reporting periods that are located in Manhattan (Same-Store Properties totaled 17 of our 32 consolidated operating properties), ii.“Acquisition Properties,” which represents all properties or interests in properties acquired in 2026 and 2025 and all non-Same-Store Properties, including properties that are under development, redevelopment or were deconsolidated during the period, iii."Disposed Properties," which represents all properties or interests in properties sold or partially sold in 2026 and 2025, iv."Alternative Strategy Portfolio," which represents non-core assets, and v.“Other,” which represents properties that were partially sold resulting in deconsolidation and corporate level items not allocable to specific properties, as well as the Service Corporation and eEmerge Inc.
Rental revenue
Rental revenues increased due primarily to the acquisition of Park Avenue Tower ($33.9 million) during the first quarter of 2026, the consolidation of 315 West 33rd Street ($18.1 million) during the third quarter of 2025, and the consolidation of 800 Third Avenue ($17.5 million) during the fourth quarter of 2025. Additionally, there was an increase in rental revenue from our Same-Store Properties, excluding 100 Park Avenue, of $1.0 million due to an increase in economic occupancy. This increase is partially offset by the deconsolidation of 100 Park Avenue ($20.1 million) at the end of the fourth quarter of 2025 and the sale of 690 Madison Avenue during the first quarter of 2026 ($1.3 million).
The following table presents a summary of the commenced leasing activity for the three months ended March 31, 2026 in our Manhattan and Suburban portfolio:
(1)Annual initial base rent.
(2)Escalated rent includes base rent plus all additional amounts paid by the tenant in the form of real estate taxes, operating expenses, porters wage or a consumer price index (CPI) adjustment.
(3)Includes expiring space, relocating tenants and move-outs where tenants vacated. Excludes lease expirations where tenants held over.
(4)Average starting office rent excluding new tenants replacing vacancies was $104.92 per rentable square foot for 211,307 rentable square feet. Average starting office rent for office space (leased and early renewals, excluding new tenants replacing vacancies) was $104.74 per rentable square foot for 262,692 rentable square feet.
Investment income decreased due primarily to interest payments received on one CMBS investment ($10.0 million) that was sold during the threesix months ended MarchJune 31,30, 2025. Investment income also decreased due to a lower weighted average debt and preferred equity investment balance for the threesix months ended MarchJune 31,30, 2026 as compared to the same period in 2025. For the threesix months ended MarchJune 31,30, 2026, the weighted average debt and preferred equity investment balance outstanding and weighted average yield were $118.3$111.3 million and 6.9%,7.5%, respectively, as compared to $333.3$326.5 million and 6.4%,6.0%, respectively, for the threesix months ended MarchJune 31,30, 2025.
Fee income increased due primarily to fees received in conjunction with the partial sale of 346 Madison Avenue ($4.2 million), the sale of 7 Dey Street ($2.1 million) and an increase in management fees ($6.5 million) and special servicing fees of ($1.2$2.6 million).
Other income decreased due primarily to lease termination income ($3.8 million) recognized during the threesix months ended MarchJune 31,30, 2025.
Marketing, general, and administrative expenses increased due primarily to higher stock based compensation expenses.
Interest expense, net of interest income, increased due primarily to the acquisition of Park Avenue Tower during the first quarter of 2026 ($5.5$12.3 million), the consolidation of 800 Third Avenue ($2.7 million) during the fourth quarter of 2025, and the consolidation of 315 West 33rd Street ($3.1$6.2 million) during the third quarter of 2025, and the consolidation of 800 Third Avenue ($5.3 million) during the fourth quarter of 2025. These increases were offset by decreased interest expense from the deconsolidation of 100 Park Avenue,Avenue ($6.2$12.5 million) at the end of the fourth quarter of 2025, and an increase in interest capitalization at properties that are under development or redevelopment ($7.1 million).2025. The weighted average consolidated debt balance outstanding was $4.7 billion for the threesix months ended MarchJune 31,30, 2026, compared to $3.8 billion for the threesix months ended MarchJune 31,30, 2025. The consolidated weighted average interest rate was 5.25%4.88% for the threesix months ended MarchJune 31,30, 2026, as compared to 5.38% for the threesix months ended MarchJune 31,30, 2025.
SUMMIT Operator tax (expense) benefit
SUMMIT Operator tax expense increased for the three months ended March 31, 2026 as compared to the same period in 2025 due primarily to a 2024 tax reduction adjustment that was recorded in the first quarter of 2025.
Depreciation and amortization increased primarily due to the acquisition of Park Avenue Tower ($8.3$16.5 million) during the first quarter of 2026, the consolidation of 800315 ThirdWest Avenue33rd Street ($2.9$6.6 million) during the fourththird quarter of 2025, and the consolidation of 315800 WestThird 33rd StreetAvenue ($4.4$5.8 million) during the thirdfourth quarter of 2025. This increase is partially offset by the disposition of 7 Dey Street ($3.2 million) during the second quarter of 2026, and the deconsolidation of 100 Park Avenue ($4.7$9.6 million) at the end of the fourth quarter of 2025 and decrease at our Same-Store Properties ($6.8 million).2025.
Equity in net income (loss) income from unconsolidated joint ventures
During the threesix months ended MarchJune 31,30, 2026, we recognized $26.6 million of income related to a reduction in the negative carrying value of an unconsolidated joint venture. During the six months ended June 30, 2025, we recognized $18.3 million of income related to the write-off of athe negative carrying value associated withof an unconsolidated joint venture after we were no longer obligated or otherwise committed to provide additional financial support to the entity.
Equity in net loss on sale of interest in unconsolidated joint venture/real estate
SLG insider buying and selling (Form 4)
Since 2026-04-11, insiders reported open-market purchases in 0 Form 4 filings and open-market sales in 1 filing (1 insider, 2 trade dates, 40,000 shares, about $2.3M). Net open-market shares: -40,000 (purchases minus sales); net value about -$2.3M.Totals add up every open-market (code P and S) line in those filings, using the prices reported in the filings. Awards, option exercises, tax withholding and gifts are listed below but not counted.
| Trade date | Insider | Transaction | Shares | Price | Value |
|---|---|---|---|---|---|
| 2026-08-21 | Sitomer Harrison |
Open-market sale | 22,414 | $57.69 | $1.3M |
| 2026-08-21 | Sitomer Harrison |
Open-market sale | 699 | $58.51 | $40.9K |
| 2026-08-20 | Sitomer Harrison |
Open-market sale | 16,887 | $58.52 | $988.2K |
Well-known investors holding SLG (13F)
None of the 59 investors we track reported a position in their latest 13F.