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SL Green (SLG) Announces Three New Leases, Boosts Occupancy

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·3 min read
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Despite the negative effects of the pandemic-borne job losses and the remote-working dynamics that have been hindering the U.S. office real estate sector, SL Green Realty Corp SLG continues to make solid strides on its leasing front.

In fact, the companyhas been witnessing strong demand for its office properties in New York and has recently inked two new leases at One Vanderbilt Avenue and another at 11 Madison Avenue.

Specifically, at its 1,401 feet tall recently-opened skyscraper One Vanderbilt, the company signed a 16,614-sq-ft lease with Walker & Dunlop, LLC, and a 26,770-sq-ft lease with a financial services firm.

Walker & Dunlop, a leading commercial real estate finance company, will lease out part of the 33rd floor for seven years, while the financial services firm will occupy the entire 55th floor for 15 years. With these two leases, leased occupancy at One Vanderbilt has reached 73%.

Notably, the 1.7-million-sq-ft skyscraper offers an unparalleled combination of amenities, innovative office design, state-of-the-art technology, best-in-class sustainability and a healthy work environment together with a direct connection to Grand Central Terminal.

This has likely enabled the company to enjoy exceptional tenant demand and strong leasing velocity at the property. In fact, despite the pandemic-led remote-working scenario, which has dampened the office real estate market, SL Green has signed seven leases with multiple leases in negotiation since the onset of the pandemic. This indicates renter preference for high-end amenities and strategic locations.

This aside, the company’s 99,556-sq-ft lease at 11 Madison Avenue brings the building’s occupancy to 100%. Specifically, Beam Suntory, a world leader in premium spirits, will establish its global headquarters on the entire 12th floor of 11 Madison and will lease out space for 15 years.

Per management “11 Madison has long enjoyed great popularity due to its large floor plates, beautiful architecture and spectacular location across from Madison Square Park.”

Shares of this Zacks Rank #3 (Hold) company have jumped 57.3% over the past three months compared with the industry's growth of 7.6%.

Stocks to Consider

Four Corners Property Trust, Inc.’s FCPT Zacks Consensus Estimate for 2021 funds from operations (FFO) per share has moved up marginally to $1.55 in the past month. The company currently carries a Zacks Rank of 2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Rexford Industrial Realty, Inc.’s REXR FFO per share estimate for the current year has been revised 2.8% upward to $1.44 in the past month. The company carries a Zacks Rank of 2, currently.

EastGroup Properties, Inc.’s EGP Zacks Consensus Estimate for 2021 FFO per share has been unchanged at $5.63 in a month’s time. The company has a Zacks Rank of 2 at present.

Note: Anything related to earnings presented in this write-up represent funds from operations (FFO) — a widely used metric to gauge the performance of REITs.

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