Shares of SL Green Realty (SLG) have risen 38.5% in the past six months compared with the industry's upside of 17.5%. Last July, SLG reported a second-quarter 2024 FFO per share of $2.05, which outpaced the Zacks Consensus Estimate of $1.62. Results reflected decent leasing activity in its Manhattan portfolio. SL Green also raised its guidance for 2024 FFO per share. Analysts seem bullish on this Zacks Rank #3 (Hold) company, with the Zacks Consensus Estimate for its 2024 FFO per share revised upward margin ...

NEW YORK, Sept. 09, 2024 (GLOBE NEWSWIRE) -- SL Green Realty Corp. (NYSE: SLG), Manhattan's largest office landlord, today announced that it will release its earnings for the third quarter of 2024 on Wednesday, October 16, 2024 after market close. The Company's executive management team, led by Marc Holliday, Chairman and Chief Executive Officer, will host a conference call and audio webcast on Thursday, October 17, 2024 at 2:00pm ET to discuss the financial results. Simultaneous with the earnings release, ...

Core Insights - SL Green Realty Corp. has successfully modified and extended the mortgage on 220 East 42nd Street, reducing the principal balance by $9.0 million to $496.4 million and extending the maturity date to December 2027 [1][2]. Company Overview - SL Green Realty Corp. is Manhattan's largest office landlord and operates as a fully integrated real estate investment trust (REIT), focusing on acquiring, managing, and maximizing the value of Manhattan commercial properties [6]. - As of June 30, 2024, the company held interests in 55 buildings totaling 31.8 million square feet, including 28.1 million square feet of Manhattan buildings [6]. Mortgage Details - The interest rate on the modified mortgage remains at 2.75% over term SOFR, which has been fixed at 6.77% through the maturity date [2]. - The building, known as The Daily News Building, is currently 91% occupied with notable tenants such as Visiting Nurse Services, Omnicom Group, United Nations Development Program, and WPIX [4]. Market Position - The extension of the mortgage highlights the strong relationships SL Green has with lenders and reflects the confidence in Manhattan's office properties [3].

"This extension further emphasizes our strong relationships with the lending community and the confidence lenders have in fortress Manhattan office properties," said Harrison Sitomer, Chief Investment Officer of SL Green. About SL Green Realty Corp. This press release includes certain statements that may be deemed to be "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 and are intended to be covered by the safe harbor provisions thereof. All statements, ...

Core Viewpoint - SL Green is experiencing significant business growth despite the broader downturn in the office sector, with management successfully executing their business plan and achieving notable accomplishments in the second quarter of 2024 [1][3][7]. Summary by Category Business Performance - SL Green signed retail leases totaling over 66,000 square feet [1] - The company announced sale closings totaling $691 million [1] - Office leasing volume exceeded 1.4 million square feet in 2024 [1] - Management raised the guidance range for cash flow for the fiscal year [1] - Occupancy rates have slightly increased due to active leasing and sales [1][3] Financial Metrics - Funds flow from operations is holding up better than the previous fiscal year, with improved per share amounts [3] - The stock price has more than doubled from its low in fiscal year 2023 [5][6] - The company is relaxing some debt paydown goals temporarily, allowing for more business opportunities [3] Strategic Initiatives - SL Green is expanding its operations internationally with a new location in France [1] - The company is focused on buying and rehabbing old buildings in prime locations, which has proven successful [12] - A building conversion from office to housing is planned to start next year [1] Market Position - SL Green is leading an industry recovery while many office REITs are struggling [3][7] - The management's ability to set the right price for market conditions has been a key factor in their success [1][6] - The company’s strategy contrasts with other REITs that are facing significant challenges in the current market [1][12]

Core Insights - SL Green Realty Corp. has made significant strides in retail leasing and property sales, enhancing its portfolio and financial outlook [2][5][12] Retail Leasing Achievements - The company has signed multiple long-term retail leases, including a 15-year lease for 11,983 square feet with La Tête d'Or by Chef Daniel Boulud and another 15-year lease for 13,558 square feet with Delicious Hospitality Group [3][11] - Notable leases also include Brasserie Cognac at 461 Fifth Avenue for 13,687 square feet and a renewal by Chase Bank for 4,718 square feet at 810 Seventh Avenue [4][10] - Overall, SL Green has achieved full retail occupancy at One Madison Avenue, signing retail leases covering a total of 66,014 square feet since the end of Q1 2024 [10] Property Sales - The company completed the sale of three properties for a total of $691.4 million, resulting in net proceeds of $222.7 million used for corporate debt repayment [12] - Additionally, all 10 units of the exclusive Giorgio Armani Residences are under contract for a gross consideration of $168.2 million, with sales expected to conclude in Q4 2024 [5] Financial Performance - SL Green reported strong second-quarter 2024 results, with funds from operations (FFO) per share of $2.05, exceeding the Zacks Consensus Estimate of $1.62 and up from $1.43 a year ago [6] - The company has raised its 2024 FFO per share outlook to a range of $7.45-$7.75, reflecting improved performance and additional fee generation [14] Market Position and Outlook - Despite challenges in the office real estate sector, SL Green's solid portfolio and long-term leases position it well for growth [7] - The company has executed encouraging leases recently, including a renewal and expansion with Ares Management for 307,336 square feet and a new lease with Elliot Management Corporation for 149,437 square feet [13]

SL Green Realty Corp. (NYSE:SLG) Q2 2024 Results Conference Call July 18, 2024 2:00 PM ET Company Participants Marc Holliday - Chairman and Chief Executive Officer Matthew DiLiberto - Chief Financial Officer Steve Durels - EVP, Director of Leasing and Real Property Conference Call Participants John Kim - BMO Capital Markets Connor Mitchell - Piper Sandler Michael Lewis - Tourist Securities Nick Yulico - Scotia Bank Steve Sakwa - Evercore ISI Camille Bonnel - Bank of America Blaine Heck - Wells Fargo Anthony ...

Financial Performance - For the quarter ended June 30, 2024, SL Green reported a net loss attributable to common stockholders of $2.2 million, or $0.04 per share, compared to a net loss of $360.2 million, or $5.63 per share, for the same quarter in 2023[23]. - The Company reported FFO for the quarter ended June 30, 2024, of $143.9 million, or $2.05 per share, compared to FFO of $98.4 million, or $1.43 per share, for the same period in 2023[25]. - For the six months ended June 30, 2024, SL Green reported FFO of $359.4 million, or $5.12 per share, compared to FFO of $203.9 million, or $2.96 per share, for the same period in 2023[26]. - The company increased its 2024 earnings guidance to FFO per share of $7.45 to $7.75, while maintaining net income guidance of $2.73 to $3.03[43]. - The company reported a significant gain on early extinguishment of debt amounting to $48,482 thousand for the quarter, compared to a loss of $870 thousand in the previous quarter[48]. - The company reported a significant gain on early extinguishment of debt of $17.78 million in Q2 2024[57]. - The company reported a net unrealized loss on derivative instruments of $21,311,000 in other comprehensive income[60]. - The company reported a depreciation and amortization expense of $52,247,000 for the three months ended June 30, 2024[147]. Revenue and Income - Total revenues for Q2 2024 were $222.82 million, a decrease of 9.5% compared to $246.04 million in Q2 2023[57]. - Rental revenue, net for Q2 2024 was $135.56 million, down 18.2% from $165.65 million in Q2 2023[57]. - The company reported a net income for the period of $15,291,000, with a contribution of $18,456,000 from retained earnings, offset by a deficit of $279,763,000[60]. - The net income for the three months ended June 30, 2024, was $2,536,000, compared to a net loss of $41,623,000 for the same period in 2023, indicating a significant turnaround[62]. - The company’s net income for the six months ended June 30, 2024, was $99,883,000, a recovery from a net loss of $48,848,000 in the same period of 2023[63]. Occupancy and Leasing Activity - During the second quarter of 2024, SL Green signed 38 office leases in its Manhattan office portfolio totaling 420,513 square feet, with an average rent of $100.66 per rentable square foot[30]. - Occupancy in the Company's Manhattan same-store office portfolio increased to 89.6% as of June 30, 2024, compared to 89.2% at the end of the previous quarter[32]. - The average lease term for Manhattan office leases signed in the second quarter of 2024 was 8.8 years, with average tenant concessions of 7.0 months of free rent[30]. - The average starting rents for replacement leases in the second quarter of 2024 had a 15.5% increase over previous fully escalated rents[30]. - The company expects to increase Manhattan same-store office occupancy to more than 91.5% by December 31, 2024[32]. Debt and Financial Ratios - The company's debt and preferred equity portfolio had a carrying value of $495.7 million with a weighted average current yield of 7.5%[38]. - Total consolidated debt decreased to $3,639,892 thousand from $3,801,378 thousand in the previous quarter, a reduction of 4.3%[48]. - The consolidated debt service coverage ratio improved to 3.26x for the trailing 12 months[47]. - The company has $1,450,000 in unsecured fixed rate debt with an average interest rate of 4.56%[71]. - The company maintains a total debt to total assets ratio of 36.5%, which is below the required threshold of 60%[79]. Asset Management and Investments - The company contracted the sale of 100% of the Giorgio Armani Residences for gross consideration of $168.2 million, expected to close in Q4 2024[34]. - The sale of the Palisades Premier Conference Center generated net proceeds of $19.8 million from a sale price of $26.3 million[35]. - The company has $3.0 billion of active assignments in its special servicing and asset management business[42]. - Real estate assets before depreciation increased to $6,264,757 thousand as of June 30, 2024, compared to $5,963,895 thousand a year earlier, reflecting a growth of 5.0%[48]. - The total book value of preferred equity and mezzanine loans as of June 30, 2024, is $495,695,000[96]. Market Position and Strategy - The company has a significant presence in key markets, including Plaza District and Times Square, enhancing its market expansion strategy[110]. - The company continues to explore opportunities for mergers and acquisitions to strengthen its market position and asset base[133]. - The company has focused on properties in prime locations, such as Grand Central and Midtown, which have shown resilience in occupancy rates[133]. - The company has engaged in redevelopment activities, particularly in high-traffic areas like Midtown and Lower Manhattan[135]. - The company’s future outlook includes continued market expansion through strategic property dispositions and redevelopment efforts, aiming to enhance overall portfolio performance[136].

Liquidity SL Green exited the second quarter with cash and cash equivalents of $199.5 million, up from $196 million recorded as of Mar 31, 2024. 2024 Guidance Raised SL Green has increased its 2024 FFO per share outlook and now expects it in the range of $7.45-$7.75 compared with $7.35-$7.65 guided earlier. This marks a 10 cents per share increase at the midpoint and reflects the superior performance of the real estate portfolio and SUMMIT One Vanderbilt, along with additional fee generation. The Zacks Cons ...

For the quarter ended June 2024, SL Green (SLG) reported revenue of $135.56 million, down 18.2% over the same period last year. EPS came in at $2.05, compared to -$5.63 in the year-ago quarter. As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately. While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare ...