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SL Green Realty Corp. Reports Fourth Quarter 2008 and Full Year FFO of $1.30 Per Share and $6.19 Per Share

Fourth Quarter Highlights

Summary
New York, NY, January 26, 2009 - SL Green Realty Corp. (NYSE: SLG) today reported funds from operations available to common stockholders, or FFO, of $77.0 million, or $1.30 per share (diluted), for the fourth quarter ended December 31, 2008, an increase of 4.8% compared to $1.24 per share (diluted) for the same quarter in 2007. The Company also reported FFO of $6.19 per share (diluted) for the twelve months ended December 31, 2008, a 7.1% increase over $5.78 per share (diluted) for the same period in 2007.

Net income available to common stockholders totaled $91.6 million, or $1.60 per share (diluted), for the fourth quarter and $389.9 million, or $6.69 per share (diluted), for the twelve months ended December 31, 2008, compared to $128.7 million and $640.5 million for the respective periods in 2007. The results for the three and twelve months ended December 31, 2008 include gains on sale of $4.01 per share (diluted) and $7.45 per share (diluted), respectively, compared to gains on sale of $1.93 per share (diluted) and $8.62 per share (diluted) for the same periods in 2007.

Operating and Leasing Activity
For the fourth quarter of 2008, the Company reported revenues and EBITDA of $276.1 million and $141.3 million, respectively, an increase of $23.1 million, or 9.1%, and a decrease of $4.9 million, or 3.4%, respectively, compared to the same period in 2007. During the quarter, the Company had strong leasing activity at 317 Madison Avenue, 420 Lexington Avenue, 1185 Avenue of the Americas, 1515 Broadway, 750 Third Avenue, 360 Hamilton Avenue and 115-117 Stevens Avenue. Same-store GAAP NOI on a combined basis increased by 4.2% for the fourth quarter when compared to the same quarter in 2007, with the consolidated properties increasing 5.3% to $110.6 million and the unconsolidated joint venture properties decreasing 0.1% to $28.1 million. These amounts include approximately $7.4 million of additional accounts receivable reserves recorded during the quarter. Excluding these reserves combined same-store GAAP NOI growth was 9.8%.

Average starting Manhattan office rents of $71.49 per rentable square foot on the 248,690 square feet of leases signed during the fourth quarter represented a 64.5% increase over the previously fully escalated rents. This excludes the early renewal of approximately 1.3 million square feet with Viacom.

Occupancy for the Manhattan portfolio at December 31, 2008 was 96.7%, an increase from 96.5% at September 30, 2008. During the quarter, the Company signed 53 leases in the Manhattan portfolio totaling 1,540,008 square feet, of which 42 leases and 1,521,146 square feet represented office leases.

Average starting Suburban office rents of $29.35 per rentable square foot for the fourth quarter represented a 1.7% increase over the previously fully escalated rents. Occupancy for the Suburban portfolio decreased modestly from 91.9% at September 30, 2008 to 90.8% at December 31, 2008. During the quarter, the Company signed 19 leases in the Suburban portfolio totaling 154,319 square feet, of which 18 leases and 153,819 square feet represented office leases.

Significant leasing activities during the fourth quarter included:

Real Estate Investment Activity
The Company and Gramercy entered into an agreement to sell 100% of 55 Corporate Drive, NJ for $230.0 million, including the assumption by the buyer of the in-place mortgage indebtedness. The sale, which is subject to customary closing conditions, is expected to close during the first quarter of 2009.

In October 2008, the Company with its joint venture partner, closed on the sale of the 525,000 square foot office property at 1372 Broadway for $274.0 million. The Company recognized a gain of $238.6 million in the fourth quarter of 2008, including approximately $211.1 million of which had been deferred from the Company's sale of 85% of the property in July 2007.

Financing and Capital Activity
The Company repurchased approximately $348.6 million of its convertible bonds, realizing gains on early extinguishment of debt aggregating approximately $117.9 million. Approximately $86.0 million of these repurchases settled in 2009 and approximately $29.4 million of the gains will be recognized in 2009.

Structured Finance Activity
The Company's structured finance investments totaled $747.9 million on December 31, 2008, a decrease of approximately $179.0 million from the balance at September 30, 2008. During the fourth quarter of 2008, the Company sold approximately $99.7 million of structured finance investments and realized net gains of approximately $9.3 million. During the fourth quarter of 2008, the Company recorded $84.8 million in loan loss reserves primarily against its non-New York City structured finance investments. The structured finance investments currently have a weighted average maturity of 5.5 years and a weighted average yield for the quarter ended December 31, 2008 of 10.34%.

Investment in Gramercy Capital Corp.
At December 31, 2008, the book value of the Company's investment in Gramercy Capital Corp. totaled $8.0 million. Fees earned from various management arrangements between the Company and Gramercy totaled approximately $6.0 million for the quarter ended December 31, 2008 and $35.4 million for the twelve months ended December 31, 2008. These amounts were reduced by approximately $5.1 million of incentive fees returned, pursuant to a written agreement, to Gramercy in the fourth quarter of 2008. During the quarter, the Company waived its right to receive incentive fees and CDO collateral management fees. The Company's share of FFO generated from its investment in Gramercy has been estimated at approximately $5.7 million and $21.0 million for the three and twelve months ended December 31, 2008, respectively, compared to $5.6 million and $21.9 million for the same periods in the prior year.

During the fourth quarter, the Company reached an agreement for Gramercy to obtain lender consent in order to finalize the internalization. This included the reimbursement of approximately $5.1 million of incentive fees previously recognized, payable in a combination of cash and GKK stock. SL Green also expensed it's approximately $14.9 million investment in GKK Manager LLC. Due to market conditions, the Company also recognized a loss on its investment in Gramercy of approximately $147.5 million.

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 and year ended December 31, 2008, the Company's MG&A included approximately $0.1 million and $16.3 million, respectively, of costs associated with Gramercy compared to $2.4 million and $12.0 million for the same periods in the prior year. The fourth quarter MG&A also includes the reversal of certain incentive compensation that had been accrued during the first nine months of 2008.

During the fourth quarter, the Company and certain of its employees agreed to cancel, without compensation, certain employee stock options as well as a portion of the Company's 2006 long-term outperformance plan. These cancellations resulted in a non-cash MG&A charge of approximately $18.0 million in the fourth quarter.

Dividends
During the fourth quarter of 2008, the Company declared quarterly dividends on its outstanding common and preferred stock as follows:

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, January 27, 2009 at 2:00 pm ET to discuss the financial results. The Supplemental Package will be available prior to the quarterly conference call on the Company's web site, www.slgreen.com, under "financial reports" in the investors' section of the website.

The live conference will be webcast in listen-only mode on the Company's web site under "event calendar & webcasts" in the investors' section of the website and on Thomson's StreetEvents Network. The conference may also be accessed by dialing 866.383.8008 Domestic or 617.597.5341 International, using the pass-code SL Green.

A replay of the call will be available through February 4, 2009 by dialing 888.286.8010 Domestic or 617.801.6888 International, using the pass-code 92395386.

Supplemental Information
The Supplemental Package outlining the Company's fourth quarter and full year 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 December 31, 2008, the Company owned 29 New York City office properties totaling approximately 23,211,200 square feet, making it New York's largest office landlord. In addition, at December 31, 2008, SL Green held investment interests in, among other things, eight retail properties encompassing approximately 400,212 square feet, two development properties encompassing approximately 363,000 square feet and two land interests, along with ownership interests in 34 suburban assets totaling 7,656,500 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 and credit market conditions, tenant or borrower bankruptcies and defaults, compliance with financial covenants, 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.

CONTACT
Gregory F. Hughes
Chief Operating Officer and Chief Financial Officer

Heidi Gillette
Investor Relations
(212) 594-2700

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