SL Green(US:SLG) ZACKS·2025-04-17 15:31Core Insights - SL Green Realty Corp. reported first-quarter 2025 funds from operations (FFO) per share of $1.40, exceeding the Zacks Consensus Estimate of $1.27, compared to $3.07 per share in the same period last year [1] - The results were driven by improved average rental rates on Manhattan office leases and higher same-store cash net operating income (NOI), despite elevated interest expenses impacting overall performance [2] Financial Performance - Net rental revenues reached $144.5 million, surpassing the Zacks Consensus Estimate of $140.7 million, reflecting a 12.7% year-over-year increase [2] - Same-store cash NOI increased by 2.4% year over year to $149.2 million, excluding lease termination income [3] Leasing Activity - In the first quarter, SL Green signed 45 office leases totaling 0.6 million square feet in Manhattan, with an average rental rate of $83.75 per rentable square foot, up from $74.38 in the previous quarter [4] - The average lease term for signed leases was 9.8 years, with tenant concessions averaging 9.4 months of free rent and a tenant improvement allowance of $94.35 per rentable square foot [5] Occupancy and Interest Expenses - As of March 31, 2025, Manhattan's same-store office occupancy was 91.8%, down from 92.4% at the end of the previous quarter [6] - Interest expenses increased by 46.5% year over year to $45.7 million [6] Portfolio Activity - In April 2025, SL Green sold 85 Fifth Avenue, generating net proceeds of $3.2 million, and in the first quarter, sold six Giorgio Armani Residences for net proceeds of $93.3 million [7] - The company acquired 500 Park Avenue for $130 million in January 2025 [7] Liquidity Position - At the end of the first quarter, SL Green had cash and cash equivalents of $180.1 million, a decrease from $184.3 million as of December 31, 2024 [8] - The net carrying value of the company's debt and preferred equity portfolio was $318.2 million, reflecting a 4.8% increase from the last quarter [8]