SL Green(US:SLG)2024-10-31 21:19Financial Performance - Rental revenue for the three months ended September 30, 2024, increased to $144.7 million, a 3.5% increase from $139.8 million in the same period of 2023[194] - Total revenues for the three months ended September 30, 2024, were $146.8 million, reflecting a 3.4% increase from $142.0 million in the prior year[194] - The company reported a net income of $(9.3) million for the three months ended September 30, 2024, an improvement of $12.4 million compared to a net loss of $(21.7) million in the same period of 2023[196] - Rental revenue for the nine months ended September 30, 2024, was $418.9 million, a decrease of 0.6% from $421.5 million in 2023[209] - Total revenues for the nine months ended September 30, 2024, were $640.4 million, down 8.8% from $701.9 million in 2023[209] - Funds from Operations (FFO) for the three months ended September 30, 2024, was $78,554,000, compared to $87,739,000 for the same period in 2023, representing a decrease of approximately 13.3%[256] - For the nine months ended September 30, 2024, FFO was $437,939,000, an increase of approximately 50.2% compared to $291,648,000 in 2023[256] - The net loss attributable to SL Green common stockholders for the three months ended September 30, 2024, was $(13,279,000), compared to $(23,967,000) in 2023, indicating an improvement of approximately 44.5%[256] Property and Occupancy - As of September 30, 2024, the total commercial properties owned by the company amounted to 24 buildings with approximately 10,519,660 square feet, achieving a weighted average leased occupancy of 89.3%[191] - The weighted average leased occupancy for Manhattan office properties was 89.9%, while suburban office properties had a lower occupancy rate of 73.6%[191] - Same-Store Properties totaled 21 of the 26 consolidated operating properties as of September 30, 2024[210] - Rental revenues decreased by $77.0 million due to the deconsolidation of 245 Park Avenue and increased vacancy at several properties[212] Expenses and Costs - Property operating expenses rose to $76.2 million, a 3.5% increase compared to $73.6 million in the same quarter of 2023[194] - Property operating expenses rose to $218.9 million for the nine months ended September 30, 2024, an increase of 2.3% from $214.0 million in 2023[209] - Marketing, general and administrative expenses decreased to $62.4 million for the nine months ended September 30, 2024, from $69.1 million in 2023, a decline of 9.7%[209] - Interest expense and amortization of deferred financing costs increased by $15.4 million due to decreased interest capitalization related to properties under development[204] - Interest expense and amortization of deferred financing costs decreased due to the deconsolidation of 245 Park Avenue and repayment of unsecured corporate term loans[219] Investments and Financing - The company held debt and preferred equity investments with a book value of $293.9 million as of September 30, 2024[191] - The weighted average debt and preferred equity investment balance was $334.6 million with a yield of 7.1% for the nine months ended September 30, 2024, compared to $632.3 million and 5.9% for the same period in 2023[216] - As of September 30, 2024, total debt increased to $3,833.8 million from $3,507.4 million as of December 31, 2023, representing a 9.3% increase[245] - Fixed rate debt constituted 85.8% of total debt as of September 30, 2024, compared to 92.3% as of December 31, 2023, indicating a shift towards variable rate debt[245] - The effective interest rate for fixed rate debt rose to 5.13% as of September 30, 2024, up from 4.68% as of December 31, 2023[245] Cash Flow and Liquidity - Cash flow from operations decreased to $71.4 million for the nine months ended September 30, 2024, down from $181.3 million in the same period of 2023[233] - Total liquidity as of September 30, 2024, was $0.7 billion, including $507.5 million available under the revolving credit facility[232] - Cash flows provided by operating activities for the three months ended September 30, 2024, were $16,723,000, a decrease of approximately 78.4% from $77,346,000 in 2023[256] - Cash flows used in investing activities for the three months ended September 30, 2024, were $(159,277,000), compared to $310,552,000 in 2023, reflecting a significant change in investment strategy[256] Gains and Adjustments - A gain on the sale of Palisades Premier Conference Center was recognized at $7.3 million for the three months ended September 30, 2024[207] - The company recorded a $55.7 million negative fair value adjustment related to the consolidation of 10 East 53rd Street[224] - A gain of $24.9 million was recognized on the sale of interest in 717 Fifth Avenue during the nine months ended September 30, 2024[223] - The company recorded a $17.8 million gain on discounted debt extinguishment at 719 Seventh Avenue during the nine months ended September 30, 2024[227] - Equity in net income from unconsolidated joint ventures increased by $128.3 million primarily from a gain on discounted debt extinguishment at 2 Herald Square[223] Shareholder and Stock Information - As of September 30, 2024, the company had repurchased 36,107,719 shares under a $3.5 billion share repurchase program[239] - The company issued 15,945 phantom stock units and 25,590 shares of common stock to the Board of Directors during the nine months ended September 30, 2024, with a total compensation expense of $2.6 million[243] - As of September 30, 2024, 3.5 million fungible units were available for issuance under the 2005 Stock Option and Incentive Plan[242] Future Outlook and Strategy - The company anticipates future capital expenditures and acquisitions, with a focus on the New York metropolitan area markets, as part of its growth strategy[259] - The company expects to incur $15.1 million of leasing capital expenditures and $12.1 million of recurring capital expenditures for the remainder of 2024[230] Internal Controls and Compliance - The company has not experienced significant changes in its internal control over financial reporting during the quarter ended September 30, 2024[265] - The Chief Executive Officer and Chief Financial Officer concluded that the Company's disclosure controls and procedures were effective[266] - The Company maintains effective disclosure controls and procedures to ensure timely reporting of required information under SEC rules[266] - The Company has investments in certain unconsolidated entities, which limits its disclosure controls and procedures for those entities[266] - As of September 30, 2024, the Company and the Operating Partnership were not involved in any material litigation[268]