SL Green Realty (SLG) risk factors, FY2024 10-K

Other

1. 01Declines in the demand for office space in the New York metropolitan area, and in particular midtown Manhattan, could adversely affect the value of our real estate portfolio and our results of operations and, consequently, our ability to service current debt and to pay dividends and distributions to security holders
2. 02We may be unable to renew leases or relet space as leases expire
3. 03We face significant competition for tenants
4. 04The expiration of long term leases or operating sublease interests where we do not own a fee interest in the land could adversely affect our results of operations
5. 05Five of our properties, One Vanderbilt Avenue, 11 Madison Avenue, 420 Lexington Avenue, 1515 Broadway and 245 Park Avenue accounted for 38.9% of our Portfolio annualized cash rent, which includes our share of joint venture annualized cash rent, as of December 31, 2024
6. 06Our results of operations rely on major tenants and insolvency or bankruptcy of these or other tenants could adversely affect our results of operations
7. 07Construction is in progress at our development projects
8. 08We are subject to risks that affect the retail environment
9. 09We are subject to the risk of adverse changes in economic and geopolitical conditions in general and the commercial office markets in particular
10. 10Leasing office space to smaller and growth-oriented businesses could adversely affect our cash flow and results of operations
11. 11We may suffer adverse consequences if our revenues decline since our operating costs do not decline in proportion to our revenue
12. 12Competition for acquisitions and other investments may reduce the number of opportunities available to us and increase the costs of those acquisitions or other investments
13. 13We face risks associated with property acquisitions and other investments
14. 14Limitations on our ability to sell or reduce the indebtedness on specific properties could adversely affect the value of our common stock
15. 15Potential losses may not be covered by insurance
16. 16The occurrence of a terrorist attack may adversely affect the value of our properties and our ability to generate cash flow
17. 17We face possible risks associated with natural disasters and the effects of climate change
18. 18We may incur significant costs to comply with climate change initiatives, and in particular those implemented in New York City
19. 19Our management of the Fund involves certain risks, which could adversely affect our business, financial condition and results of operations

RISKS RELATED TO OUR LIQUIDITY AND CAPITAL RESOURCES

1. 20Scheduled debt payments could adversely affect our results of operations
2. 21Financial covenants could adversely affect our ability to conduct our business
3. 22High interest rates could adversely affect our cash flow
4. 23Our hedging strategies may not effectively limit exposure against interest rate changes, which may adversely affect results of operations
5. 24Increases in our leverage could adversely affect our results of operations and the trading price of our stock
6. 25Debt and preferred equity investments could cause us to incur expenses, which could adversely affect our results of operations
7. 26Joint investments could be adversely affected by our lack of sole decision-making authority and reliance upon a co-venturer's financial condition
8. 27Certain of our joint venture agreements contain terms in favor of our partners that could have an adverse effect on the value of our investments in the joint ventures
9. 28We are dependent on external sources of capital

RISKS RELATED TO OUR ORGANIZATION AND STRUCTURE

1. 29We depend on dividends and distributions from our direct and indirect subsidiaries
2. 30In addition, our participation in any distribution of the assets of any of our direct or indirect subsidiaries upon any liquidation, reorganization or insolvency is only after the claims of the creditors, including trade creditors and preferred security holders, are satisfied
3. 31Provisions of our charter and bylaws could inhibit changes in control
4. 32We have a stock ownership limit
5. 33Maryland takeover statutes may prevent a change of control of our company, which could depress our stock price
6. 34A person is not an interested stockholder under the statute if the board of directors approves in advance the transaction by which he otherwise would have become an interested stockholder
7. 35The business combination statute may discourage others from trying to acquire control of us and increase the difficulty of consummating any offer, including potential acquisitions that might involve a premium price for our common stock or otherwise be in the best interest of our stockholders
8. 36SL Green's failure to qualify as a REIT would be costly and would have a significant effect on the value of our securities
9. 37We may in the future pay taxable dividends on our common stock in common stock and cash

RISKS RELATED TO LEGAL AND REGULATORY MATTERS

1. 38We may incur costs to comply with governmental laws and regulations
2. 39Compliance with changing or new regulations applicable to corporate governance and public disclosure may result in additional expenses, or affect our operations
3. 40Our property taxes could increase due to reassessment or property tax rate changes
4. 41The trading price of our common stock has been and may continue to be subject to wide fluctuations
5. 42Future issuances of common stock, preferred stock or convertible debt could dilute existing stockholders' interests
6. 43Changes in market conditions could adversely affect the market price of our common stock
7. 44Changes to U.S. federal income tax laws could materially and adversely affect us and our stockholders
8. 45Loss of key personnel could harm our operations and our stock price
9. 46Our business and operations would suffer in the event of system failures or cyber security attacks