SL Green Realty Corp. Reports First Quarter 2008 FFO of $1.44 Per Share and Increases 2008 Annual Guidance to $6.20-$6.25 of FFO Per Share

First Quarter Highlights First quarter FFO totaled $1.44 per share (diluted) compared to $2.03 per share (diluted) during the first quarter of 2007. The 2007 results include an incentive distribution of $77.2 million ($1.27 per share diluted) from the sale of One Park Avenue. Excluding the incentive fee from 2007 results, FFO per share increased 89.5% quarter over quarter. Net income available to common stockholders for the first quarter of 2008 totaled $2.14 per share (diluted) compared to $2.53 per share (diluted) in the same period in the prior year. Signed 41 Manhattan office leases totaling 508,960 square feet during the first quarter, finishing the quarter at 96.3% occupancy for the Manhattan portfolio. The leases carried an average rent of $62.32. Increased average Manhattan office starting rents by 43.9% over previously fully escalated rents reflecting continued growth in rents for Manhattan office leases signed during the first quarter. Recognized combined same-store GAAP NOI growth of 12.2% during the first quarter including 14.2% from the consolidated same-store properties and 5.5% from the unconsolidated joint venture same-store properties. Closed on the acquisition of 182 Broadway and 63 Nassau Street through a joint venture for approximately $30.0 million. Closed on the previously announced sale of 440 Ninth Avenue for $160.0 million, generating a gain, net of minority interest, of approximately $106.0 million. Entered into an agreement to sell 1250 Broadway for $310.0 million, which is expected to generate an incentive fee of at least $15.0 million upon consummation of the sale. The sale, which is subject to customary closing conditions, is expected to close in the second quarter of 2008. Received $29.7 million in dividends and fees from our investment in, and management arrangements with, Gramercy Capital Corp. (NYSE: GKK), or Gramercy, including a $2.5 million incentive fee earned during the quarter and a special dividend of $15.2 million. Acquired $58.4 million of the Company’s common stock since January 1, 2008 at an average share price of $83.89 pursuant to its previously announced $300.0 million stock repurchase program. The Company has now acquired $209.1 million of its common stock. Increased 2008 annual guidance from $6.10-$6.20 of FFO per share to $6.20-$6.25 of FFO per share. Summary SL Green Realty Corp. (NYSE: SLG) today reported funds from operations available to common stockholders, or FFO, of $87.9 million, or $1.44 per share (diluted), for the first quarter ended March 31, 2008, a 29.1% decrease compared to the same quarter in 2007, which was $2.03 per share (diluted). The 2007 results included an incentive distribution of $77.2 million ($1.27 per share diluted) from the sale of One Park Avenue. Net income available to common stockholders totaled $125.9 million, or $2.14 per share (diluted), for the quarter ended March 31, 2008, a decrease of $21.5 million compared to the respective period in 2007 which was $2.53 per share (diluted). Operating and Leasing Activity For the first quarter of 2008, the Company reported revenues and EBITDA of $272.7 million and $167.6 million, respectively, decreases of $13.2 million, or 4.6%, and $10.1 million, or 5.7%, respectively, compared to the same period in 2007 which included an incentive distribution of $77.2 million ($1.27 per share diluted) from the sale of One Park Avenue. During the quarter, we had strong leasing activity at 1221 Avenue of the Americas, 711 Third Avenue, 220 East 42nd Street, 420 Lexington Avenue and 673 First Avenue. Same-store GAAP NOI on a combined basis increased by 12.2% for the first quarter when compared to the same quarter in 2007, with the consolidated properties increasing 14.2% to $109.7 million during the first quarter and the unconsolidated joint venture properties increasing 5.5% to $30.6 million. Average starting Manhattan office rents of $62.32 per rentable square foot for the first quarter represented a 43.9% increase over the previously fully escalated rents. Occupancy for the Manhattan portfolio decreased from 96.6% at December 31, 2007 to 96.3% at March 31, 2008. During the quarter, the Company signed 51 leases for the Manhattan portfolio totaling 524,213 square feet, with 41 leases and 508,960 square feet representing office leases. Average starting Suburban office rents of $31.52 per rentable square foot for the first quarter represented a 17.6% increase over the previously fully escalated rents. Occupancy for the Suburban portfolio decreased modestly from 92.0% at December 31, 2007 to 91.9% at March 31, 2008. During the quarter, the Company signed 23 leases for the Suburban portfolio totaling 177,208 square feet, with 20 leases and 165,386 square feet representing office leases. Significant leasing activities during the first quarter included: Early renewal with Crain Communications, Inc. for approximately 98,618 square feet at 711 Third Avenue. Early renewal with Omnicom Group, Inc. for approximately 55,078 square feet at 220 East 42nd Street. New lease with Sirius Satellite Radio, Inc. for approximately 45,295 square feet at 1221 Avenue of the Americas. New lease with NYU Hospital Center for approximately 43,895 square feet at 673 First Avenue. New lease with Sonnenschein, Nath & Rosenthal for approximately 43,828 square feet at 1221 Avenue of the Americas. New lease with The Segal Company for approximately 138,462 square feet at 333 West 34th Street. Real Estate Investment Activity During the first quarter of 2008, the Company invested approximately $30.0 million in new transactions. Investment activity announced during the first quarter included: In January 2008, the Company entered into an agreement to sell the 39-story, 670,000 square foot Class A office tower located at 1250 Broadway in Manhattan to Murray Hill Properties for $310.0 million, or approximately $463 per square foot, at a capitalization rate of 4.5%. The partners recapitalized the property in October 2006, with an agreed-upon value of $260.0 million – at which time the Company’s economic stake increased from 54.9% to 66.2% due to the Company’s success in exceeding performance thresholds. The Company expects to recognize an incentive fee of at least $15.0 million upon consummation of the sale. In February 2008, the Company, through its joint venture with Jeff Sutton, acquired the properties located at 182 Broadway and 63 Nassau Street for approximately $30.0 million. These properties are located adjacent to 180 Broadway which the joint venture acquired in August 2007. The joint venture also closed on a $31.0 million loan which bears interest at 225 basis points over the 30-day LIBOR. The loan has a three year term and two one-year extensions. The joint venture drew down $21.1 million at the closing. In January 2008, the Company closed on the sale of 440 Ninth Avenue for $160.0 million. The sale generated a gain, net of minority interest, of approximately $106.0 million. Financing and Capital Activity The Company acquired $58.4 million of its common stock at an average share price of $83.89 since January 1, 2008 pursuant to its previously announced $300.0 million stock repurchase program. The Company has now acquired $209.1 million of its common stock at an average share price of $104.13. The joint venture that acquired 182 Broadway and 63 Nassau Street closed on a $31.0 million loan which bears interest at 225 basis points over the 30-day LIBOR. The loan has a three-year term and two one-year extensions. The joint venture drew down $21.1 million at the closing. Structured Finance Activity The Company’s structured finance investments totaled $776.5 million on March 31, 2008, a decrease of approximately $28.7 million from the balance at December 31, 2007. The structured finance investments currently have a weighted average maturity of 6.1 years. The weighted average yield for the quarter ended March 31, 2008 was 10.6%, compared to a yield of 10.7% for the quarter ended March 31, 2007. Investment In Gramercy Capital Corp. At March 31, 2008, the book value of the Company's investment in Gramercy totaled $158.5 million. Fees earned from various management arrangements between the Company and Gramercy totaled approximately $9.7 million for the quarter ended March 31, 2008, including an incentive fee of $2.5 million earned as a result of Gramercy’s FFO (as defined in Gramercy’s management agreement) exceeding the 9.5% annual return on equity performance threshold. The Company’s share of FFO generated from its investment in Gramercy totaled approximately $5.3 million for the three months ended March 31, 2008, compared to $4.9 million for the same period in the prior year. The Company’s marketing, general and administrative, or MG&A, expenses include the consolidation of the expenses of its subsidiary GKK Manager LLC, the entity which manages and advises Gramercy. For the quarter ended March 31, 2008, the Company’s MG&A included approximately $3.5 million, of costs associated with Gramercy compared to $2.4 million in the prior year. In April 2008, Gramercy closed on its acquisition of American Financial Realty Trust. The Company participated in $50.0 million of the $850.0 million financing of Gramercy in connection with this acquisition. Dividends During the first quarter of 2008, the Company declared quarterly dividends on its outstanding common and preferred stock as follows: $0.7875 per share of common stock. Dividends were paid on April 15, 2008 to stockholders of record on the close of business on March 31, 2008. $0.4766 and $0.4922 per share on the Company's Series C and D Preferred Stock, respectively, for the period January 15, 2008 through and including April 14, 2008. Distributions were made on April 15, 2008 to stockholders of record on the close of business on March 31, 2008. Distributions reflect regular quarterly distributions, which are the equivalent of an annualized distribution of $1.90625 and $1.96875, respectively. Conference Call and Audio Webcast The Company's executive management team, led by Marc Holliday, Chief Executive Officer, will host a conference call and audio web cast on Tuesday, April 22, 2008 at 2:00 pm EST to discuss first quarter 2008 financial results. The Supplemental Package will be available prior to the quarterly conference call on the Company's web site. The live conference will be webcast in listen-only mode on the Company's web site at www.slgreen.com and on Thomson's StreetEvents Network. The conference may also be accessed by dialing (866) 700-6979 Domestic or (617) 213-8836 International, using pass code SL Green. A replay of the call will be available through Tuesday, April 29, 2008 by dialing (888) 286-8010 Domestic or (617) 801-6888 International, using pass code 63711682. Supplemental Information The Supplemental Package outlining first quarter 2008 financial results will be available prior to the quarterly conference call on the Company's website. Company Profile SL Green Realty Corp. is a self-administered and self-managed real estate investment trust, or REIT, that predominantly acquires, owns, repositions and manages Manhattan office properties. The Company is the only publicly held REIT that specializes in this niche. As of March 31, 2008, the Company owned 31 New York City office properties totaling approximately 24,389,200 square feet, making it New York's largest office landlord. In addition, SL Green holds investment interests in, among other things, nine retail properties encompassing approximately 400,212 square feet, one development property encompassing approximately 85,000 square feet and two land interests, along with ownership interests in 36 suburban assets totaling 7,867,500 square feet in Brooklyn, Queens, Long Island, Westchester County, Connecticut and New Jersey. To be added to the Company’s distribution list or to obtain the latest news releases and other Company information, please visit our website at www.slgreen.com or contact Investor Relations at 212-216-1601. Disclaimers Non-GAAP Financial Measures During the quarterly conference call, the Company may discuss non-GAAP financial measures as defined by SEC Regulation G. In addition, the Company has used non-GAAP financial measures in this press release. A reconciliation of each non-GAAP financial measure and the comparable GAAP financial measure can be found on page 7 and 9 of this release and in the Company’s Supplemental Package. Forward-looking Information 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 forward-looking information in this release include the strength of the commercial office real estate markets in New York, reduced demand for office space, unanticipated increases in financing and other costs, competitive market conditions, unanticipated administrative costs, timing of leasing income, general and local economic conditions, interest rates, capital market conditions, tenant bankruptcies and defaults, the availability and cost of comprehensive insurance, including coverage for terrorist acts, environmental, regulatory and/or safety requirements, and other factors, which are beyond the Company's control. We undertake no obligation to publicly update or revise any of the forward-looking information. 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, 2008   2007 Revenue: Rental revenue, net $ 201,395 $ 147,136 Escalations & reimbursement revenues 31,124 27,195 Preferred equity and investment income 21,306 21,709 Other income 18,442 89,878 Total revenues 272,267 285,918   Equity in net income from unconsolidated joint ventures 19,425 9,354   Expenses: Operating expenses 54,050 46,464 Ground rent 8,249 7,265 Real estate taxes 33,828 29,613 Marketing, general and administrative 27,982 34,247 Total expenses 124,109 117,589   Earnings Before Interest, Depreciation and Amortization (EBITDA) 167,583 177,683 Interest expense 78,518 57,591 Amortization of deferred financing costs 2,046 3,301 Depreciation and amortization 55,448 36,060 Net income from Continuing Operations 31,571 80,731 Income from Discontinued Operations, net of minority interest 70 3,581 Gain on sale of Discontinued Operations, net of minority interest 105,992 --- Equity in net gain on sale of interest in unconsolidated joint venture --- 31,509 Gain on sale of real estate interest --- 47,229 Minority interests (6,773) (10,654) Preferred stock dividends ( 4,969) (4,969) Net income available to common stockholders $ 125,891 $ 147,427   Net income per share (Basic) $ 2.15 $ 2.60 Net income per share (Diluted) $ 2.14 $ 2.53   Funds From Operations (FFO) FFO per share (Basic) $ 1.45 $ 2.09 FFO per share (Diluted) $ 1.44 $ 2.03   FFO Calculation: Net income from continuing operations $ 31,571 $ 80,731 Add: Depreciation and amortization 55,448 36,060 FFO from Discontinued Operations 73 6,308 FFO adjustment for Joint Ventures 6,043 5,822 Less: Dividend on perpetual preferred stock (4,969) (4,969) Depreciation of non-real estate assets (223) (236) FFO before minority interests – BASIC and DILUTED $ 87,943 $ 123,716   Basic ownership interest Weighted average REIT common shares for net income per share 58,482 56,649 Weighted average partnership units held by minority interests 2,340 2,652 Basic weighted average shares and units outstanding for FFO per share 60,822 59,301 Diluted ownership interest Weighted average REIT common share and common share equivalents 58,881 58,278 Weighted average partnership units held by minority interests 2,340 2,652 Diluted weighted average shares and units outstanding 61,221 60,930 SL GREEN REALTY CORP. CONDENSED CONSOLIDATED BALANCE SHEETS (Amounts in Thousands)     March 31, 2008 December 31, 2007 Assets (Unaudited) Commercial real estate properties, at cost: Land and land interests $ 1,454,060 $ 1,436,569 Buildings and improvements 5,994,846 5,924,626 Building leasehold and improvements 1,249,121 1,249,093 Property under capital lease 12,208 12,208 8,710,235 8,622,496 Less accumulated depreciation (432,567) (381,510) 8,277,668 8,240,986 Assets held for sale --- 41,568 Cash and cash equivalents 46,793 45,964 Restricted cash 144,127 105,475 Tenant and other receivables, net of allowance of $14,088 and $13,932 in 2008 and 2007, respectively   45,594 49,015 Related party receivables 12,448 13,082 Deferred rents receivable, net of allowance of $12,863 and $13,400 in 2008 and 2007, respectively   150,087 136,595 Structured finance investments, net of discount of $28,716 and $30,783 in 2008 and 2007, respectively   776,488 805,215 Investments in unconsolidated joint ventures 1,431,162 1,438,123 Deferred costs, net 137,079 134,354 Other assets 427,588 419,701 Total assets $ 11,449,034 $ 11,430,078   Liabilities and Stockholders’ Equity Mortgage notes payable $ 2,867,593 $ 2,844,644 Revolving credit facility 720,500 708,500 Term loans and unsecured notes 2,070,127 2,069,938 Accrued interest and other liabilities 39,695 45,194 Accounts payable and accrued expenses 135,083 180,898 Deferred revenue/gain 808,262 819,022 Capitalized lease obligation 16,581 16,542 Deferred land lease payable 17,378 16,960 Dividend and distributions payable 51,823 52,077 Security deposits 34,067 35,021 Junior subordinate deferrable interest debentures held by trusts that issued trust preferred securities   100,000 100,000 Total liabilities 6,861,109 6,888,796 Commitments and contingencies --- --- Minority interest in other partnerships 636,966 632,400 Minority interest in operating partnership 85,201 82,007 Stockholders’ Equity 7.625% Series C perpetual preferred shares, $0.01 per value, $25.00 liquidation preference, 6,300 issued and outstanding at March 31, 2008 and December 31, 2007, respectively   151,981   151,981 7.875% Series D perpetual preferred shares, $0.01 per value, $25.00 liquidation preference, 4,000 issued and outstanding at March 31, 2008 and December 31, 2007, respectively   96,321   96,321 Common stock, $0.01 par value 160,000 shares authorized, 60,191 and 60,071 issued and outstanding at March 31, 2008 and December 31, 2007, respectively (inclusive of 1,907 and 1,312 shares held in Treasury at March 31, 2008 and December 31, 2007, respectively)     602     601 Additional paid - in capital 2,943,610 2,931,887 Treasury stock-at cost (200,630) (150,719) Accumulated other comprehensive income 2,143 4,943 Retained earnings 871,731 791,861 Total stockholders’ equity 3,865,758 3,826,875 Total liabilities and stockholders’ equity $ 11,449,034 $ 11,430,078 SL GREEN REALTY CORP. SELECTED OPERATING DATA-UNAUDITED   March 31, 2008   2007 Manhattan Operating Data: (1) Net rentable area at end of period (in 000’s) 24,389 22,112 Portfolio percentage leased at end of period 96.3% 97.3% Same-Store percentage leased at end of period 95.4% 97.6% Number of properties in operation 31 31   Office square feet leased during quarter (rentable) 508,960 330,972 Average mark-to-market percentage-office 43.9% 37.0% Average starting cash rent per rentable square foot-office $62.32 $57.84   (1) Includes wholly owned and joint venture properties. SL GREEN REALTY CORP. RECONCILIATION OF NON-GAAP FINANCIAL MEASURES* (Amounts in thousands, except per share data)   Three Months Ended March 31, 2008   2007 Earnings before interest, depreciation and amortization (EBITDA): $ 167,583 $ 177,683 Add: Marketing, general & administrative expense 27,982 34,247 Operating income from discontinued operations 73 7,635 Less: Non-building revenue (33,388) (107,766) Equity in net income from joint ventures (19,425) (9,354) GAAP net operating income (GAAP NOI) 142,825 102,445   Less: Operating income from discontinued operations (73) (7,635) GAAP NOI from other properties/affiliates (89,727) (45,084) Same-Store GAAP NOI $ 53,025 $ 49,726   * See Statements of Operations-Unaudited for a reconciliation of FFO and EBITDA to net income.