SL Green Realty Corp (SLG) Reports Q3 2023 Earnings: Net Loss of $0.38 Per Share and FFO of $1. ...
SL Green Realty Corp (NYSE:SLG) reported a net loss of $0.38 per share for Q3 2023, compared to net income of $0.11 per share in Q3 2022.
The company's funds from operations (FFO) stood at $1.27 per share for Q3 2023, down from $1.66 per share in the same period last year.
Same-store cash net operating income (NOI) increased by 10.4% for Q3 2023 and 6.4% for the first nine months of 2023 compared to the same periods in 2022.
Manhattan same-store office occupancy increased to 89.9% as of September 30, 2023.
SL Green Realty Corp (NYSE:SLG), Manhattan's largest office landlord, released its Q3 2023 earnings report on October 19, 2023. The company reported a net loss attributable to common stockholders of $0.38 per share for the third quarter of 2023, compared to net income of $0.11 per share for the same period in 2022. The reported funds from operations (FFO) stood at $1.27 per share for Q3 2023, down from $1.66 per share in Q3 2022.
Financial and Operating Highlights
SL Green signed 50 Manhattan office leases covering 355,831 square feet in Q3 2023 and 134 Manhattan office leases covering 1,271,262 square feet for the first nine months of 2023. The mark-to-market on signed Manhattan office leases was 3.8% lower for Q3 and 0.4% lower for the first nine months of 2023 than the previous fully escalated rents on the same spaces.
Same-store cash net operating income (NOI), including the company's share of same-store cash NOI from unconsolidated joint ventures, increased by 10.4% for Q3 2023 and 6.4% for the first nine months of 2023 compared to the same periods in 2022, excluding lease termination income.
Investing and Financing Highlights
SL Green, along with its joint venture partners, entered into an agreement to sell the equity interests in the condominium units at 21 East 66th Street for total consideration of $40.6 million. The sale is anticipated to close in Q4 2023, subject to customary closing conditions.
The company also received a Temporary Certificate of Occupancy (TCO) for the 1.4 million square foot office tower at One Madison Avenue, which was completed three months ahead of schedule and significantly under budget. The company received $577.4 million in cash, representing the final equity payment from its joint venture partners, which was triggered by the milestone.
Earnings Guidance
SL Green is revising its 2023 earnings guidance ranges for the year ending December 31, 2023 to FFO per share of $5.05 to $5.35, and net loss per share of ($7.69) to ($7.39) to reflect $0.10 per share of severance expense and $0.17 per share of accelerated stock-based compensation expense that will be recognized during Q4 2023 related to the non-renewal of President Andrew Mathias's employment agreement.
Dividends
In Q3 2023, the company declared three monthly ordinary dividends on its outstanding common stock of $0.2708 per share, which were paid in cash on August 15, September 15, and October 16, 2023, equating to an annualized dividend of $3.25 per share of common stock.
This article first appeared on GuruFocus.
