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 ...

SL Green (SLG) came out with quarterly funds from operations (FFO) of $2.05 per share, beating the Zacks Consensus Estimate of $1.62 per share. This compares to FFO of $1.43 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an FFO surprise of 26.54%. A quarter ago, it was expected that this commercial real estate investment trust would post FFO of $2.32 per share when it actually produced FFO of $3.07, delivering a surprise of 32.33%. Over the last fo ...

Net loss attributable to common stockholders of $0.04 per share for the second quarter of 2024 as compared to net loss of $5.63 per share for the same period in 2023. Funds from operations, or FFO, of $2.05 per share for the second quarter of 2024, inclusive of $48.5 million, or $0.69 per share, of gains on discounted debt extinguishments at 280 Park Avenue and 719 Seventh Avenue and $1.4 million, or $0.02 per share, of positive non-cash fair value adjustments on mark-to-market derivatives. The Company repo ...

Net loss attributable to common stockholders of $0.04 per share for the second quarter of 2024 as compared to net loss of $5.63 per share for the same period in 2023. Funds from operations, or FFO, of $2.05 per share for the second quarter of 2024, inclusive of $48.5 million, or $0.69 per share, of gains on discounted debt extinguishments at 280 Park Avenue and 719 Seventh Avenue and $1.4 million, or $0.02 per share, of positive non-cash fair value adjustments on mark-to-market derivatives. The Company repo ...

NEW YORK, July 17, 2024 (GLOBE NEWSWIRE) -- SL Green Realty Corp. (NYSE: SLG), Manhattan's largest office landlord, today announced that it has signed retail leases totaling 66,014 square feet since the end of the first quarter of 2024 and has reached full retail occupancy at One Madison Avenue. The new hospitality-focused retail tenants augment the building's existing lifestyle flagship retail tenant Chelsea Piers, which will open its second Manhattan location at the tower in August 2024. La Tête d'Or by D ...

The new hospitality-focused retail tenants augment the building's existing lifestyle flagship retail tenant Chelsea Piers, which will open its second Manhattan location at the tower in August 2024. NEW YORK, July 17, 2024 (GLOBE NEWSWIRE) -- SL Green Realty Corp. (NYSE: SLG), Manhattan's largest office landlord, today announced that it has signed retail leases totaling 66,014 square feet since the end of the first quarter of 2024 and has reached full retail occupancy at One Madison Avenue. Located adjacent ...

NEW YORK, July 17, 2024 (GLOBE NEWSWIRE) -- SL Green Realty Corp. (NYSE: SLG), Manhattan's largest office landlord, today announced that it has closed on the sale of three properties totaling $691.4 million, including 625 Madison Avenue, 719 Seventh Avenue and the Palisades Premier Conference Center, which generated net proceeds to the Company of $222.7 million that was used for corporate debt repayment. "As we enter the second half of the year with an improving market backdrop, we have made meaningful prog ...