SL Green(US:SLG)2024-07-18 17:45Financial 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].