SL Green(US:SLG)2025-05-01 13:22Property Ownership and Occupancy - As of March 31, 2025, SL Green Realty Corp. owned 28 consolidated operating properties with a total square footage of approximately 25.5 million square feet, achieving a weighted average leased occupancy of 91.4%[280] - The weighted average leased occupancy for commercial properties was 91.3%, while residential properties achieved 99.6% occupancy as of March 31, 2025[280] - The Alternative Strategy Portfolio included 7 properties with a total square footage of approximately 2.6 million square feet, achieving a 63.0% occupancy rate[280] Financial Performance - Total revenues for the three months ended March 31, 2025, reached $239.8 million, reflecting a 27.6% increase from $187.9 million in the prior year[284] - Rental revenue for the three months ended March 31, 2025, was $149.2 million, an increase of 8.6% compared to $137.4 million for the same period in 2024[284] - The net loss for the three months ended March 31, 2025, was $21.5 million, a significant decline from a net income of $18.4 million in the same period of 2024, representing a 216.8% change[284] - Investment income increased significantly by 117.6% to $16.1 million for the three months ended March 31, 2025, compared to $7.4 million in the same period of 2024[284] - Other income rose by $5.9 million, driven by lease termination income ($3.8 million) and management fees from third-party investors ($1.8 million)[293] - For the three months ended March 31, 2025, the funds from operations (FFO) attributable to SL Green common stockholders and unit holders were $106.5 million, compared to $215.4 million for the same period in 2024, indicating a decrease of approximately 50.5%[343] Expenses and Costs - Property operating expenses increased by 16.7% to $83.3 million for the three months ended March 31, 2025, compared to $71.4 million in the same period of 2024[284] - Property operating expenses increased by $13.1 million, mainly due to the consolidation of 100 Park Avenue ($6.9 million) and 10 East 53rd Street ($4.0 million)[294] - Depreciation and amortization increased by $11.5 million, primarily due to the consolidation of 100 Park Avenue ($4.7 million) and 10 East 53rd Street ($3.8 million)[299] Debt and Liquidity - As of March 31, 2025, the total debt amounted to $3.88 billion, with fixed rate debt constituting 86.9% and variable rate debt 13.1%[323] - The weighted average consolidated debt balance was $3.8 billion with a weighted average interest rate of 5.38% for the three months ended March 31, 2025[296] - The company had liquidity of $0.9 billion, including $752.5 million available under the revolving credit facility and $192.4 million in cash[308] - The company’s variable rate debt as of March 31, 2025, bore interest based on a spread to LIBOR of 145 basis points and Term SOFR of 148 to 275 basis points[333] - A hypothetical 100 basis point increase in the applicable floating interest rate curve would increase the company's share of consolidated annual interest cost by $1.8 million and joint venture annual interest cost by $1.9 million[333] Capital Expenditures and Investments - For the year ending December 31, 2025, the company expects to incur $113.7 million in leasing capital expenditures and $20.8 million in development expenditures[307] - Capital expenditures increased from $55.3 million in Q1 2024 to $74.2 million in Q1 2025 due to higher spending on development projects[312] - The company expects to fund capital expenditures from operating cash flow, existing liquidity, and borrowings from construction financing facilities[307] Risks and Challenges - The company is significantly affected by general economic, business, and financial conditions, particularly in the New York City real estate market[349] - There are risks associated with real estate acquisitions, including construction delays and cost overruns[349] - The company faces challenges related to the availability and creditworthiness of prospective tenants and borrowers[349] - Increased vacancy rates and reduced demand for office space are adverse changes in the real estate market[349] - The company must manage unanticipated increases in financing costs, including rising interest rates[349] - Compliance with financial covenants in debt instruments is critical for the company's operations[349] - The company is at risk of losing its status as a REIT if it fails to meet certain requirements[349] - The threat of terrorist attacks poses a risk to the company's operations and asset management business[349] - The company must navigate legislative and regulatory requirements that could adversely affect REITs and the real estate business[349] Shareholder and Stock Information - The company repurchased 36,107,719 shares under a $3.5 billion share repurchase program, with no shares repurchased during the three months ended March 31, 2025[316] - The company expects to pay annual dividends to stockholders of at least 90% of its REIT taxable income to maintain its qualification as a REIT[336] Compliance and Regulatory Matters - As of March 31, 2025, the company was in compliance with all covenants related to its 2021 credit facility and senior unsecured notes[332] - The company entered into a CMBS Repurchase Facility in December 2024, allowing it to sell certain CMBS investments with a simultaneous agreement to repurchase them[331] Miscellaneous - The company recorded a compensation expense of $1.9 million related to the Deferred Compensation Plan for Directors during Q1 2025[320] - The company recorded a $5.9 million negative fair value adjustment for secured borrowing related to a previous sale of an interest in One Madison Avenue[302] - Cash and cash equivalents decreased by $18.5 million from the previous year, totaling $337.0 million as of March 31, 2025[311] - As of March 31, 2025, the carrying value of the revolving credit facility was $486.6 million, compared to $316.2 million as of December 31, 2024[329] - The effective interest rate for total debt was 5.38% as of March 31, 2025, compared to 5.17% as of December 31, 2024[323] - The company’s interest rate risk is managed through the use of interest rate derivative instruments and fixed-rate debt, with $3.4 billion of consolidated long-term debt bearing fixed rates as of March 31, 2025[333] - Market risk exposures have not changed materially since December 31, 2024[350]