LONDON, UK / ACCESSWIRE / July 23, 2018 /
If you want access to our free earnings report on SL Green Realty Corp. (NYSE: SLG), all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=SLG. The Company reported its second quarter fiscal 2018 operating and financial results on July 18, 2018. The commercial real estate investment trust's earnings surged more than 1,000%. Register today and get access to over 1,000 Free Research Reports by joining our site below:
Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, SL Green Realty most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below:
Earnings Highlights and Summary
For the quarter ended June 30, 2018, SL Green recorded revenues of $301.1 million compared to $398.2 million in Q2 2017. The Company's rental revenues totaled $211.4 million in the reported quarter, which were lower than analysts' estimates of $215.4 million.
During Q2 2018, SL Green reported an operating income of $301.1 million compared to $237.2 million in Q2 2017.
SL Green reported a net income attributable to common stockholders of $103.6 million, or $1.19 per share, in Q2 2018 compared to $8.2 million, or $0.08 per share, in Q2 2017. The Company's net income attributable to common stockholders for the reported quarter included $57.2 million, or $0.62 per share, of net gains recognized from the sale of real estate.
SL Green reported funds from operations (FFO) of $155.6 million, or $1.69 per share, compared to $186.8 million, or $1.78 per share, in Q2 2017. For Q2 2017, the Company's FFO included $9.4 million, or $0.09 per share, of previously unrecognized income on the Company's preferred equity investment in 885 Third Avenue; and $10.3 million, or $0.10 per share, of net fees related to the closing of the One Vanderbilt joint venture. SL Green's earnings surpassed Wall Street's estimates of $1.68 per share.
Operating and Leasing Activity
SL Green's same-store cash net operating income (NOI) increased by 8.0% on a y-o-y basis. For the reported quarter, the Company's consolidated property same-store cash NOI increased 4.0% to $128.0 million, while its unconsolidated joint venture property same-store cash NOI increased 17.8% to $58.7 million.
During Q2 2018, SL Green signed 58 office leases in its Manhattan portfolio totaling 565,914 square feet. The Company stated that forty-two leases comprising 322,937 square feet, representing office leases on space that had been occupied within the prior twelve months, are considered replacement leases on which mark-to-market is calculated. Those replacement leases had average starting rents of $66.90 per rentable square foot, representing a 5.2% increase over the previously fully escalated rents on the same office spaces.
The average lease term on the Manhattan office leases signed was 8.4 years in Q2 2018; and average tenant concessions were 3.2 months of free rent with a tenant improvement allowance of $64.63 per rentable square foot. SL Green's occupancy in the Manhattan same-store portfolio was 95.9% as of June 30, 2018, inclusive of 557,637 square feet of leases signed but not yet commenced, compared to 95.5% at March 31, 2018, and 94.7% at June 30, 2017.
During Q2 2018, SL Green signed 13 office leases in its Suburban portfolio totaling 45,224 square feet. The Company noted that 10 leases comprising 35,832 square feet, representing office leases on space that had been occupied within the prior twelve months, were considered replacement leases on which mark-to-market is calculated. Those replacement leases had average starting rents of $38.13 per rentable square foot, representing a 4.9% decrease over the previously fully escalated rents on the same office spaces.
The average lease term on the Suburban office leases signed was 6.0 years in Q2 2018; and average tenant concessions were 5.5 months of free rent with a tenant improvement allowance of $10.95 per rentable square foot. As of June 30, 2018, SL Green's occupancy in Suburban same-store portfolio was 87.2%, inclusive of 5,732 square feet of leases signed but not yet commenced, compared to 87.6% at March 31, 2018.
During Q2 2018, SL Green announced that its Board of Directors had authorized a $500 million increase to the size of its share repurchase program, bringing the program total to $2.0 billion.
The carrying value of the Company's debt and preferred equity investment portfolio increased to $2.36 billion at June 30, 2018, including $2.17 billion of investments at a weighted average current yield of 8.8%, and investments aggregating $0.19 billion at a weighted average current yield of 10.6%. During Q2 2018, SL Green originated or acquired new debt and preferred equity investments totaling $541.0 million, all of which was retained and $477.9 million of which was funded.
Stock Performance Snapshot
July 20, 2018 - At Friday's closing bell, SL Green Realty's stock declined 2.31%, ending the trading session at $99.31.
Volume traded for the day: 944.13 thousand shares, which was above the 3-month average volume of 928.22 thousand shares.
Stock performance in the previous three-month period – up 3.45%; and past six-month period – up 5.75%
After last Friday's close, SL Green Realty's market cap was at $8.90 billion.
Price to Earnings (P/E) ratio was at 33.80.
The stock has a dividend yield of 3.27%.
The stock is part of the Financial sector, categorized under the REIT - Retail industry. This sector was up 0.4% at the end of the session.
Active-Investors (A-I) produces regular sponsored and non-sponsored reports, articles, stock market blogs, and popular investment newsletters covering equities listed on NYSE and NASDAQ and Canadian stocks. A-I has two distinct and independent departments. One department produces non-sponsored analyst certified content generally in the form of press releases, articles and reports covering equities listed on NYSE and NASDAQ and the other produces sponsored content (in most cases not reviewed by a registered analyst), which typically consists of compensated investment newsletters, articles and reports covering listed stocks and micro-caps. Such sponsored content is outside the scope of procedures detailed below.
A-I has not been compensated; directly or indirectly; for producing or publishing this document.
PRESS RELEASE PROCEDURES:
The non-sponsored content contained herein has been prepared by a writer (the "Author") and is fact checked and reviewed by a third-party research service company (the "Reviewer") represented by a credentialed financial analyst [for further information on analyst credentials, please email email@example.com. Rohit Tuli, a CFA® charterholder (the "Sponsor"), provides necessary guidance in preparing the document templates. The Reviewer has reviewed and revised the content, as necessary, based on publicly available information which is believed to be reliable. Content is researched, written and reviewed on a reasonable-effort basis. The Reviewer has not performed any independent investigations or forensic audits to validate the information herein. The Reviewer has only independently reviewed the information provided by the Author according to the procedures outlined by A-I. A-I is not entitled to veto or interfere in the application of such procedures by the third-party research service company to the articles, documents or reports, as the case may be. Unless otherwise noted, any content outside of this document has no association with the Author or the Reviewer in any way.
A-I, the Author, and the Reviewer are not responsible for any error which may be occasioned at the time of printing of this document or any error, mistake or shortcoming. No liability is accepted whatsoever for any direct, indirect or consequential loss arising from the use of this document. A-I, the Author, and the Reviewer expressly disclaim any fiduciary responsibility or liability for any consequences, financial or otherwise arising from any reliance placed on the information in this document. Additionally, A-I, the Author, and the Reviewer do not (1) guarantee the accuracy, timeliness, completeness or correct sequencing of the information, or (2) warrant any results from use of the information. The included information is subject to change without notice.
NOT AN OFFERING
This document is not intended as an offering, recommendation, or a solicitation of an offer to buy or sell the securities mentioned or discussed, and is to be used for informational purposes only. Please read all associated disclosures and disclaimers in full before investing. Neither A-I nor any party affiliated with us is a registered investment adviser or broker-dealer with any agency or in any jurisdiction whatsoever. To download our report(s), read our disclosures, or for more information, visit http://active-investors.com/legal-disclaimer/.
For any questions, inquiries, or comments reach out to us directly. If you're a company we are covering and wish to no longer feature on our coverage list contact us via email and/or phone between 09:30 EDT to 16:00 EDT from Monday to Friday at:
Phone number: 73 29 92 6381
Office Address: 6, Jalan Kia Peng, Kuala Lumpur, 50450 Kuala Lumpur, Wilayah Persekutuan Kuala Lumpur, Malaysia
CFA® and Chartered Financial Analyst® are registered trademarks owned by CFA Institute.