SL Green Realty Corp

Thank you everybody for joining us and welcome to the SL Green Realty Corp's fourth quarter 2025 earnings results conference call. This conference call is being recorded. At this time, the company would like to remind listeners that during the call, management may make forward-looking statements. You should not rely on forward-looking statements as predictions of future events, as actual results and events may differ from any forward-looking statements that management may make today. All forward-looking statements made by management on this call are based on their assumptions and beliefs as of today. Additional information regarding the risks, uncertainties, and other factors that could cause such differences to appear are set forth in the Risk Factors and MD&A sections of the company's latest form, 10-K, and other subsequent reports filed by the company with the Securities and Exchange Commission. During today's conference call, the company may discuss non-GAAP financial measures as defined by Regulation G under the Securities Act. The gap financial measure most directly comparable to each non-gap financial measure discussed and the reconciliation of the differences between each non-gap financial measure and the comparable gap financial measures can be found on both the company's website at www.sogreen.com. by selecting the press release regarding the company's fourth quarter 2025 earnings and in our supplemental information included in our current report on Form 8K relating to our fourth quarter 2025 earnings. Before turning the call over to Mark Holliday, Chairman and Chief Executive Officer of SL Green Realty Corp., I ask that those of you participating in the Q&A portion of the call to please limit your questions to two per person. Thank you. I will now turn the call over to Mark Holliday. Please go ahead, Mark.

Okay. Thank you for joining us this afternoon as we kick off the year. It's been just weeks since our investor conference, but we've already hit the ground running on our business plan for 2026. We are about a month into the Mondami administration and know there's a lot of pressure and focus on the mayor coming out of the gate. But it's going to take some time for the mayor of Mondami to put an imprint on how he'll govern. He's still putting his team together, and they're at the very early stages of getting their arms around the city. We did see an early test this week with a major snowstorm here in New York, about a foot of snow in Manhattan on Sunday, and the administration did a great job getting the city back to normal quickly, with the mayor being very visible and communicating effectively. At the same time, there's a lot of political maneuvering going on as we enter budget season in Albany. This is the time of year when the city makes its case to get the biggest chunk of the state budget as possible for the coming fiscal year, reflecting the city's enormous contribution to the state economy. This is especially true with a new administration eager to invest in the initiatives and promises made on the campaign trail. I know there's been a lot of talk recently about potential city budget deficits, $2 billion this coming fiscal year and up to $10 billion the following. My own view is that the city starts off every budgetary period with a gap that needs to be plugged, and this year is no different. It's not just about expenditures. On the revenue side, there's a lot of good news with tax collections up 8.5% in 2025, a big portion of which came from growth in personal income. One thing that's certain is that the business economy in New York City had an incredible year in 2025, and I believe that when the new revenue forecasts come out in the next few weeks, we'll see that the city will be projecting significant additional revenue increases that will help defray the current deficit. Remember, the city's budget is required by law to be balanced at the beginning of every fiscal year, and we continue to remain confident in the city's fiscal stability and strength. Let's not forget that New York City's credit rating is AA and was reaffirmed by S&P as recently as October, which noted that the city has the budgetary reserves needed to navigate any near-term risks. At our investor conference in December, I made the case for what I believe was shaping up to be a stellar 2026. As we sit here on January 29th, I feel the same. In short, I think 2026 is setting up to be Quite an amazing year for the commercial office sector in terms of occupancy gains, rental achievement, and business growth. Given the lens I look through today, the fundamentals are strong. Businesses are still leasing space and expanding, growing their businesses, and making lots of money. The big five banks just reported increases to earnings year over year, with profits in the fourth quarter up 6.7%, and investment banking revenues up 12.6%. And we're expecting when Wall Street member firms finally report fourth quarter profits, they will come close to meeting or exceeding the current all-time high of $61 billion, as the number stood at $48 billion through the first nine months. Between Wall Street, the big five banks reporting, and what we see going on in our own portfolio, it all reaffirms our view at Investor Conference that New York City is differentiating itself from other U.S. cities in significant ways, and will continue to be the central focus of investors looking to deploy capital in debt and equity this year and beyond. Case in point, I led a contingency from SL Green that just finished a 10-day swing through Asia where we collectively held two dozen meetings with debt and equity capital sources, investors, buyers, sellers, asset managers, and sovereigns. I can tell you that the appetite to invest in New York was as strong as I have ever seen. As we continue our travels around the world, we expect to see a similar theme play out. I expect that transaction volume for 2026 will be even higher than last year, which was $23 billion, an amount that was roughly equivalent to that of 2019. And it'll only facilitate the company's execution on our $7 billion refinance plan and our $2.5 billion disposition plan. We set lofty goals for ourselves in December, as we always do, and know you all will be monitoring our progress every step of the way, as you should. We like that pressure, and we've never been more motivated to meet or exceed those goals than this year. What emboldens me is that the private markets completely get it. One point I highlighted at Investor Conference, Paramount trading at under $4 a share and then selling for nearly $2. $7 was not lost on anyone. The private markets see economic growth in real terms, the coalescing of young and highly educated talent, and strong business demand right here in New York City. So we're going back to work on what we can control and keep putting numbers on the board until we see it reflected in the stock price, which I know we will because the disconnect now is simply too big to ignore between the value of our premier assets in this company and our share price. And to be clear, one of those premier assets is our human capital, the people of SL Green, who will generate more than $100 million in fee revenue from institutional investors who look to us to develop, manage, and monetize investments on their behalf. I hope everyone out there appreciates our efforts and the enormity of the plan we have for 2026, and thank you for continuing to support our company. Now I'd like to turn it over to our Chief Investment Officer, Harry Satomer, who will add some color on how we're progressing on our business plan.

Thank you, Mark. On the capital markets front, 2026 is off to a busy start. First, in the credit markets, we have seen a continued tightening of senior loans as demonstrated by our recent financing of Park Avenue Tower, which priced a spread of 1.58% at our full proceeds ask. Most notably, we saw AAAs representing over 50% of the transaction, sell as tight as 112 basis points over the treasury rate. While this rate is a compelling borrowing rate, I will remind everyone that in 2018 and 19, we saw similar classes trading in the 60 basis point range over treasuries. So there's still a substantial amount of room for further rate tightening across the capital stack and of course in the index. We will continue to benefit from this momentum as we execute on our $7 billion financing strategy this year highlighted by the refinancings of 1 Madison Avenue, 245 Park Avenue, and our corporate credit facility, which total approximately $5 billion of the $7 billion plan. We are in various stages of executing on each of these financings, and you should expect to see us roll out a series of announcements through the balance of the year as we enjoy a tightening senior borrowing market for quality assets and sponsors. In the equity markets, we are seeing a wide array of new entrants rejoin this market as a result of improving sentiment and investors realizing the relative value of New York City commercial office properties versus alternative investment opportunities in an economic climate where hard assets are otherwise trading at premiums. We had a busy New Year's Eve closing out our partnership with Rock Point at 100 Park, where we quickly realized on a substantial premium from the acquisition 11 months prior. With the building now 100% leased Us and Rock Point together will fund the necessary costs to complete the capitalization of the project. We welcome Rock Point to our blue chip roster of reliable partners. They are a great firm and we expect to do more together. This was Rock Point's first major office deal in six years, a testament to the recovery in New York City. We are in negotiations on contracts and term sheets on four additional transactions in our $2.5 billion plan. and look forward to sharing updates as we further our JV and counterparty roster. On that note, and to reiterate Mark's earlier color, I will add what a difference a few years makes in the private markets. After our investor conference, my phone and inbox was flooded with inbounds looking to explore participating in our capital markets plan for the year. And Mark talked about Asia, but the interest is really across the globe. I'm seeing it domestically in Canada, Europe, and the Middle East as well. I haven't seen this widespread of demand since pre-2020, and New York is clearly defining itself as far and away the city to invest capital in today. On the fund side, while we have seen stability in the senior lending markets where we are borrowers, we still are seeing inefficiencies and imbalance in the subordinate credit space where our fund is focused. We are tracking for $150 to $175 million of deployment per quarter, and the team is hard at work deploying that capital for our customers. We are also pleased to announce that we will be launching fundraising for our next fund focused on senior credit lending as we continue to bulk up our fund business. More on this to come over the next few months. Finally, last but not least, a shout out to Green Loan Services, which is now the largest active special servicer of SASB loans in the country, now servicing five of the top 10 largest specially serviced loans. With that exciting news, I will pass it over to Matt.