“I am pleased that our significant efforts over the past two years of the recovery are evident in our reported results for the second quarter,” Holliday said, describing that this year’s earning have “exceeded” SL Green’s “already optimistic” expectations.

In Q2, the company reported revenues and operating income of $300.7 million and $164.7 million, respectively, an increase of 19.5% and 21.8% compared to $251.6 million and $135.2 million for the same period in 2010. “While credit markets have come under pressure over concerns about domestic economic growth and European countries with debt problems, the local New York economy remains a relative bright spot, and it doesn’t seem to be showing any signs of reversal that is in any way inconsistent with the summer months,” Holliday added.

On the operating side, the company’s same-store GAAP NOI increased 2.6% to $174.4 million, after giving consideration to 1515 Broadway and 521 Fifth Ave. as consolidated properties. And on the investing side, SL Green concluded a recapitalization of 280 Park Ave., resulting in Vornado Realty Trust and the company holding a majority equity stake in the property; converted a debt position at 110 E. 42^nd St. into a substantial ownership interest in the office condominium, along with control of the asset; and originated and purchased $55.7 million of new debt investments at an average current yield of 8.5%.

“The Manhattan market is showing no let-up in demand for income producing assets,” said Andrew Mathias, president at SL Green, during the call. “Deals continue to go into contract and close with interesting buildings, bucking the usual summer slowdown.”

On the leasing side, Holliday said over 11 million square feet of leasing activity was recorded in Midtown alone during the first half of the year, or 1.85 million square feet per month, which he described as an “exceptionally high” rate. With over 2.3 million square feet of absorption, the vacancy rates have broken through the 10% mark; it currently sits at 9.8% in Midtown and 9.4% for Manhattan overall. Significant leases include a 12-year, 88,049-square-foot early renewal for Rothstein Kass & Company at 1350 Ave. of the Americas; a 10-year lease with UN Women at 22 East 42^nd St. for 73,595 square feet; and a new 10-year 33,799-square-foot lease with Wilk Auslander LLP at 1515 Broadway.

The market environment in general particularly bodes well for the company’s New York portfolio, wherein SL Green added 12 properties over the last two years, representing $4.5 billion of transaction values, $2.5 billion of which alone represent SL Green’s share, Holliday said. At the same time, many of these new additions contain substantial vacancies, but the company sees redevelopment and lease-up potential at 3 Columbus Circle, 600 Lexington Ave., 125 Park Ave., 100 Church St. and 280 Park Ave.

“With respect to this last property, 280 Park, we are feeling very confident that we will be able to reposition that property with our partner into one of the leading commercial properties on Park Avenue, demanding among the highest rents,” Holliday said. “In hindsight, we are happy with each of those properties that we acquired and we played that market exactly as we wanted to over the recovery period.”