Home Featured SL Green’s Continues to Find Ways to Optimize Portfolio Gains

SL Green’s Continues to Find Ways to Optimize Portfolio Gains

386
SHARE

SL Green Realty Corp. recently reported net income attributable to common stockholders for the quarter ended September 30, 2018 of $88.2 million, or $1.03 per share, as compared to net income attributable to common stockholders of $38.9 million, or $0.40 per share, for the same quarter in 2017.

According to Marc Holliday, CEO, “The engine behind our current strategic plan is the extraordinary value creation we have been able to generate in this current cycle, which really began after the ‘08-09 recession. As many of you know, we have been hard at work since 2016, finding ways to optimize and harvest the extraordinary gains in our portfolio as evidenced by over $8 billion of total gross transaction values, dispositions and recapitalizations, which resulted in well over $2 billion of cash inflows to the company since 2016. We have been very thoughtful and deliberate in redeploying these proceeds in ways we believe best benefit the company and our shareholders.”

The firm says that net income attributable to common stockholders for the three months ended September 30, 2018 includes $68.4 million, or $0.76 per share, of net gains recognized from the sale of real estate as compared to $1.0 million, or $0.01 per share, for the same period in 2017.

The company also reported net income attributable to common stockholders for the nine months ended September 30, 2018 of $293.5 million, or $3.34 per share, as compared to net income attributable to common stockholders of $58.4 million, or $0.59 per share, for the same period in 2017. Net income attributable to common stockholders for the nine months ended September 30, 2018 includes $142.7 million, or $1.54 per share, of net gains recognized from the sale of real estate as compared to $12.9 million, or $0.12 per share, for the same period in 2017.

Reported FFO for the quarter ended September 30, 2018 was $149.8 million, or $1.66 per share, after giving effect to $2.2 million, or $0.02 per share, of unamortized costs that were written off upon early repayment of the mortgage at 220 East 42nd Street and a reserve of $1.1 million, or $0.01 per share, that was recorded against a debt investment that is being repaid, as compared to FFO for the same period in 2017 of $152.9 million, or $1.49 per share.

SL Green also reported FFO for the nine months ended September 30, 2018 of $463.1 million, or $5.00 per share, as compared to FFO for the same period in 2017 of $505.6 million, or $4.85 per share.

The company also reported consolidated revenues and operating income of $307.5 million and $169.3 million, respectively, compared to $374.6 million and $206.1 million, respectively, for the same period in 2017.

Same-store cash NOI, including our share of same-store cash NOI from unconsolidated joint ventures, increased by 6.1% for the quarter ended September 30, 2018, or 6.0%, excluding lease termination income. For the quarter, consolidated property same-store cash NOI increased by 6.4% to $128.3 million, or 6.3% to $127.4 million, excluding lease termination income, while unconsolidated joint venture property same-store cash NOI increased by 5.4% to $55.5 million. No lease termination income was recognized in unconsolidated joint venture property same-store cash NOI during the quarter.

In the third quarter, the company signed 50 office leases in its Manhattan portfolio totaling 491,441 square feet. Thirty-three leases comprising 251,511 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 $71.69 per rentable square foot, representing a 1.0% increase over the previous fully escalated rents on the same office spaces. The average lease term on the Manhattan office leases signed in the third quarter was 11.2 years and average tenant concessions were 7.5 months of free rent with a tenant improvement allowance of $65.86 per rentable square foot.


Warning: A non-numeric value encountered in /home/scopii47/public_html/thereitwire.com/wp-content/themes/Newsmag/includes/wp_booster/td_block.php on line 997