U.S. Markets closed
  • S&P 500

    -40.76 (-0.91%)
  • Dow 30

    -166.44 (-0.48%)
  • Nasdaq

    -137.96 (-0.91%)
  • Russell 2000

    +3.95 (+0.18%)
  • Crude Oil

    -0.61 (-0.84%)
  • Gold

    -4.80 (-0.27%)
  • Silver

    -0.33 (-1.44%)

    -0.0039 (-0.3285%)
  • 10-Yr Bond

    +0.0390 (+2.93%)
  • Vix

    +2.79 (+14.93%)

    -0.0063 (-0.4546%)

    +0.2420 (+0.2206%)

    -114.86 (-0.24%)
  • CMC Crypto 200

    -26.08 (-2.13%)
  • FTSE 100

    -63.84 (-0.91%)
  • Nikkei 225

    +176.71 (+0.58%)

SL Green (SLG) Signs Lease for 22,500 Sq Ft at One Vanderbilt

  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
·3 min read
In this article:
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.

SL Green Realty Corp. SLG has inked a lease with Kyndryl for 22,531 square feet of space at One Vanderbilt Avenue. With the lease, the skyline-defining tower in the center of East Midtown is now 81% leased.

Specifically, a portion of the 15th floor at One Vanderbilt will serve as a new headquarters for Kyndryl under the nine-year lease. Kyndryl will be created as an independent company, following the spin-off of IBM’s Managed Infrastructure Services business, which is expected to occur by the end of this year.

Per management, Kyndryl adds to “a rapidly expanding roster of industry leading companies that have selected One Vanderbilt because of its best-in-class design, healthy work environment, extensive suite of amenities and commuter convenience.”

With numerous corporate leaders encouraging employees to return to office, the outlook for urban office properties remains positive. In fact, the company noted an acceleration in leasing activity in recent months. Moreover, rents for newly constructed and redeveloped properties have been held firm.

Amid the favorable developments in the office leasing market, the company remains on target to achieve 90% leased by the end of 2021.

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.

However, amid the pandemic, SL Green is facing downward pressure on rental rates, and is offering higher tenant concessions and free-rent period extensions to repopulate its office buildings.

Also, the company has been resorting to non-core asset sales to enhance its liquidity to fund development projects and share buybacks. Notably, it aims dispositions of more than $1 billion for 2021. While dispositions are strategic fits over the long term, these will be dilutive for near-term earnings.

Shares of this Zacks Rank #3 (Hold) company have gained 20.4% over the past three months compared with the industry's growth of 8.3%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Stocks to Consider

Apple Hospitality REIT, Inc.’s APLE funds from operations (“FFO”) per share estimate for the current year has moved up around 7% to 62 cents in the past week. The company currently carries a Zacks Rank of 2 (Buy).

OUTFRONT Media Inc.’s OUT Zacks Consensus Estimate for 2021 FFO per share has moved marginally north to 89 cents over the past month. The company currently carries a Zacks Rank of 2.

Braemar Hotels & Resorts Inc. BHR has a Zacks Rank of 2 at present. The Zacks Consensus Estimate for the ongoing year’s FFO per share has been revised around 38% upward in a week to 44 cents.

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.

Zacks Names “Single Best Pick to Double”

From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.

You know this company from its past glory days, but few would expect that it’s poised for a monster turnaround. Fresh from a successful repositioning and flush with A-list celeb endorsements, it could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in a little more than 9 months and Nvidia which boomed +175.9% in one year.

Free: See Our Top Stock and 4 Runners Up >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

SL Green Realty Corporation (SLG) : Free Stock Analysis Report

OUTFRONT Media Inc. (OUT) : Free Stock Analysis Report

Apple Hospitality REIT, Inc. (APLE) : Free Stock Analysis Report

BRAEMAR HOTELS & RESORTS INC. (BHR) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research