SL Green(US:SLG)2025-07-17 17:45Financial Performance - SL Green reported a net loss attributable to common stockholders of $11.1 million, or $0.16 per share, for Q2 2025, compared to a net loss of $2.2 million, or $0.04 per share, in Q2 2024[26]. - For the six months ended June 30, 2025, the net loss attributable to common stockholders was $32.2 million, or $0.47 per share, compared to net income of $11.0 million, or $0.16 per share, for the same period in 2024[27]. - The company reported a net loss of $30,429,000 for the first half of 2025, with a significant increase in the retained deficit to $(613,117,000)[61]. - The company reported a net loss attributable to common stockholders of $11,092,000 for the three months ended June 30, 2025, compared to a loss of $2,160,000 for the same period in 2024[148]. - For the three months ended June 30, 2025, the net loss was $6,817,000 compared to a net income of $1,959,000 for the same period in 2024[150]. Funds from Operations (FFO) - Funds from Operations (FFO) for Q2 2025 was $124.5 million, or $1.63 per share, down from $143.9 million, or $2.05 per share, in Q2 2024[28]. - For the six months ended June 30, 2025, FFO was $231.1 million, or $3.03 per share, compared to $359.4 million, or $5.12 per share, for the same period in 2024[29]. - The company’s total FAD (Funds Available for Distribution) adjustments for the six months ended June 30, 2025, were $(100,627), compared to $(38,129) in the same period of 2024, indicating a significant increase in adjustments[64]. - The company reported total Funds Available for Distribution (FAD) reported was $63,533,000 for the three months ended June 30, 2025, compared to $114,229,000 in the same period last year, a decline of 44.4%[60]. Revenue and Income - Total revenues for the three months ended June 30, 2025, increased to $241,916,000, up from $222,820,000 for the same period in 2024, representing an increase of 8.8%[57]. - Rental revenue, net for the three months ended June 30, 2025, was $147,535,000, compared to $135,563,000 in the prior year, reflecting a growth of 8.8%[57]. - The company reported a gain on early extinguishment of debt of $17,777,000 in the three months ended June 30, 2024, which was not repeated in 2025[57]. - The company reported a loss on the sale of real estate of $167,000 for the second quarter of 2025, compared to a gain of $2,741,000 in the same quarter of 2024[151]. Operating Expenses - Total operating expenses for the three months ended June 30, 2025, were $95,276,000, a decrease from $128,055,000 in the same period last year, representing a reduction of 25.7%[57]. - Total operating expenses for the three months ended June 30, 2025, were $156,777, an increase from $141,690 in the same period of 2024, representing a rise of 10.6%[63]. - The total depreciation and amortization expense for the second quarter of 2025 was $60,160,000, compared to $52,247,000 in the same quarter of 2024, an increase of approximately 15.2%[151]. Leasing Activity - In Q2 2025, SL Green signed 46 office leases in Manhattan totaling 541,721 square feet, with an average rent of $90.03 per rentable square foot[33]. - For the six months ended June 30, 2025, the company signed 91 office leases in Manhattan totaling 1,143,826 square feet, with an average rent of $86.52 per rentable square foot[34]. - The average lease term for Manhattan office leases signed in Q2 2025 was 7.8 years, with average tenant concessions of 6.3 months of free rent[33]. - The average starting cash rent per square foot for office leases signed in Q2 2025 was $95.93, a 2.4% increase from the previous escalated cash rent of $93.65[51]. Occupancy Rates - Manhattan same-store office portfolio occupancy was 91.4% as of June 30, 2025, with an expected increase to 93.2% by December 31, 2025[35]. - Same-store cash NOI decreased by 0.1% in Q2 2025, or 1.0% excluding lease termination income, compared to Q2 2024[31]. - Same-store cash NOI increased by 1.4% for the six months ended June 30, 2025, or 0.7% excluding lease termination income, compared to the same period in 2024[32]. - Same-store net operating income (NOI) for the three months ended June 30, 2025, was $170,773,000, up 5.4% from $162,055,000 in 2024[71]. Debt and Equity - The carrying value of the Company's debt and preferred equity portfolio was $525.4 million, with a weighted average current yield of 7.0%[38]. - Total consolidated debt was $3,753.4 million as of June 30, 2025, down from $3,876.7 million at the end of the previous quarter[48]. - The company reported total debt consolidated as of June 30, 2025, was $3,753,402,000, with a weighted average interest rate of 5.41%[72]. - The company’s total equity decreased to $3,880,103 as of June 30, 2025, from $3,953,427 as of March 31, 2025, a decline of 1.85%[56]. Asset Management - The Company generated net proceeds of $196.6 million from the repayment of a commercial mortgage investment valued at $125.0 million, which was repaid for $200.0 million[36]. - The Company closed the sale of 85 Fifth Avenue for a gross asset valuation of $47.0 million, generating net proceeds of $3.2 million[37]. - Real estate assets before depreciation totaled $6,731.3 million as of June 30, 2025, an increase from $6,678.9 million at the end of the previous quarter[48]. - The company has a total of 4,473,603 net rentable square feet in its West Coast Office Portfolio acquired in July 2012, valued at $880.104 million with an occupancy rate of 76.3%[135]. Strategic Acquisitions and Dispositions - The company has engaged in various redevelopment projects, including 625 Madison Avenue, expected to generate $634,600,000 from a net rentable area of 563,000 square feet, averaging $1,127 per square foot[136]. - The company has a strategic focus on high-occupancy areas, with properties like 245 Park Avenue achieving an occupancy rate of 91.8%[133]. - The company has shown a trend of increasing valuations over time, with properties sold in recent years achieving higher price per square foot compared to earlier years[134]. - The company has a significant focus on the Times Square area, with multiple properties disposed of and planned for future transactions, indicating a strategic market expansion[136].