SL Green's Q4 FFO Lags Estimates, Revenues Improve Y/Y

Core Insights - SL Green Realty Corp. reported Q4 2024 FFO per share of $1.45, missing the Zacks Consensus Estimate of$1.53, and down from $0.72 in the previous year [1][2] - For the full year 2024, FFO per share was$5.03, a 1.8% increase year-over-year, but also missed the consensus estimate of $7.78 [3] Financial Performance - Q4 net rental revenues were$139.6 million, slightly below the Zacks Consensus Estimate of $140 million, but up 5.8$145.5 million, excluding lease termination income [4] - Rental revenues for 2024 were $543 million, down 10.1$543.4 million [3] Leasing Activity - In Q4, SL Green signed 48 office leases totaling 1.8 million square feet in Manhattan, with a 9% increase in mark-to-market rents compared to previous fully escalated rents [5] - The average lease term for new Manhattan office leases was 10.6 years, with tenant concessions averaging 12.5 months of free rent [5] - As of Dec. 31, 2024, Manhattan's same-store office occupancy was 92.5%, up from 90.1% in the prior quarter [6] Interest Expenses and Debt - Interest expenses increased 39.2% year-over-year to $38.2 million [6] - The net carrying value of the company's debt and preferred equity portfolio was$303.7 million, a 3.3% increase from the previous quarter [8] Portfolio Activity - In November 2024, SL Green sold an 11% interest in One Vanderbilt Avenue for net proceeds of $189.5 million [7] - The company also sold three Giorgio Armani Residences for$61.5 million and acquired a 45% interest in 10 East 53rd Street for $7.2 million [7] Liquidity and Dividends - As of the end of Q4, cash and cash equivalents were$184.3 million, down from $188.2 million at the end of Q3 [8] - On Jan. 21, 2025, the company declared a monthly dividend of 25.75 cents per share, payable on Feb. 18 [10]