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SL Green (SLG) Q3 FFO & Revenues Surpass Estimates, NOI Up
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SL Green Realty Corp. (SLG - Free Report) reported third-quarter 2020 funds from operations (FFO) per share of $1.75, surpassing the Zacks Consensus Estimate of $1.54. The figure, nonetheless, remained unchanged from the year-ago quarter’s number.
Third-quarter 2020 FFO per share figure includes income derived from a legal settlement, net of related costs, of 26 cents. This was partially offset by 12 cents per share of losses related to certain debt and preferred equity ("DPE") investments that were sold.
Net rental revenues of $173.5 million in the third quarter outpaced the Zacks Consensus Estimate of $172.4 million. The revenue figure, however, declined 19.5% from the prior-year number of $216.48 million.
As of Oct 21, the company’s gross tenant billing collection for the third quarter was 92.6%. This includes 96.9% from office and 70% from retail tenants. As of the same date, its gross tenant billing receipts for October were 90.3%, consisting of 93.6% from office and 70.9% from retail tenants.
Moreover, second-quarter gross tenant billings collection improved to 91.8%, including 96.6% and 71.5% from office and retail tenants, respectively.
Quarter in Detail
During the September-end quarter, same-store cash net operating income (NOI), including SL Green’s share of same-store cash NOI from unconsolidated joint ventures, improved 2.1% year over year. This includes lease termination and free rent income given to Viacom for space at 1515 Broadway.
In the Manhattan portfolio, SL Green signed 33 office leases for 187,469 square feet during the reported period. The mark-to-market on signed Manhattan office leases was 6.7% during the third quarter, lower than the previous fully-escalated rents in the same spaces.
As of Sep 30, 2020, Manhattan’s same-store office occupancy, inclusive of leases signed but not yet commenced, was 94.2%, down 100 basis points from the prior quarter.
The carrying value of its debt and preferred equity investment portfolio decreased to $1.18 billion from $1.25 billion as of June end.
Liquidity
SL Green exited third-quarter 2020 with $1.56 billion of liquidity, consisting of $249.1 million of consolidated cash, cash equivalents, and marketable securities, as well as $1.31 billion of undrawn balance on its $1.5-billion revolving credit facility.
As of the third-quarter end, it had cash and cash equivalents of $221.4 million, up from $166.1 million recorded at the end of 2019.
Investment Activity
Under the $3-billion share-repurchase program, the company repurchased 6.5 million shares year to date at an average price of $63.42 per share.
During the third quarter and through Oct 21, it generated $122.1 million of cash through the sale of two DPE positions.
We now look forward to the earnings releases of other REITs like Lexington Realty Trust (LXP - Free Report) , National Storage Affiliates Trust (NSA - Free Report) and Ventas, Inc. (VTR - Free Report) . While Lexington Realty and National Storage Affiliates are slated to report third-quarter earnings on Nov 5, Ventas will release earnings on Nov 6.
Note: Anything related to earnings presented in this write-up represents funds from operations (FFO) — a widely used metric to gauge the performance of REITs.
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SL Green (SLG) Q3 FFO & Revenues Surpass Estimates, NOI Up
SL Green Realty Corp. (SLG - Free Report) reported third-quarter 2020 funds from operations (FFO) per share of $1.75, surpassing the Zacks Consensus Estimate of $1.54. The figure, nonetheless, remained unchanged from the year-ago quarter’s number.
Third-quarter 2020 FFO per share figure includes income derived from a legal settlement, net of related costs, of 26 cents. This was partially offset by 12 cents per share of losses related to certain debt and preferred equity ("DPE") investments that were sold.
Net rental revenues of $173.5 million in the third quarter outpaced the Zacks Consensus Estimate of $172.4 million. The revenue figure, however, declined 19.5% from the prior-year number of $216.48 million.
As of Oct 21, the company’s gross tenant billing collection for the third quarter was 92.6%. This includes 96.9% from office and 70% from retail tenants. As of the same date, its gross tenant billing receipts for October were 90.3%, consisting of 93.6% from office and 70.9% from retail tenants.
Moreover, second-quarter gross tenant billings collection improved to 91.8%, including 96.6% and 71.5% from office and retail tenants, respectively.
Quarter in Detail
During the September-end quarter, same-store cash net operating income (NOI), including SL Green’s share of same-store cash NOI from unconsolidated joint ventures, improved 2.1% year over year. This includes lease termination and free rent income given to Viacom for space at 1515 Broadway.
In the Manhattan portfolio, SL Green signed 33 office leases for 187,469 square feet during the reported period. The mark-to-market on signed Manhattan office leases was 6.7% during the third quarter, lower than the previous fully-escalated rents in the same spaces.
As of Sep 30, 2020, Manhattan’s same-store office occupancy, inclusive of leases signed but not yet commenced, was 94.2%, down 100 basis points from the prior quarter.
The carrying value of its debt and preferred equity investment portfolio decreased to $1.18 billion from $1.25 billion as of June end.
Liquidity
SL Green exited third-quarter 2020 with $1.56 billion of liquidity, consisting of $249.1 million of consolidated cash, cash equivalents, and marketable securities, as well as $1.31 billion of undrawn balance on its $1.5-billion revolving credit facility.
As of the third-quarter end, it had cash and cash equivalents of $221.4 million, up from $166.1 million recorded at the end of 2019.
Investment Activity
Under the $3-billion share-repurchase program, the company repurchased 6.5 million shares year to date at an average price of $63.42 per share.
During the third quarter and through Oct 21, it generated $122.1 million of cash through the sale of two DPE positions.
SL Green currently carries a Zacks Rank of 3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
SL Green Realty Corporation Price, Consensus and EPS Surprise
SL Green Realty Corporation price-consensus-eps-surprise-chart | SL Green Realty Corporation Quote
We now look forward to the earnings releases of other REITs like Lexington Realty Trust (LXP - Free Report) , National Storage Affiliates Trust (NSA - Free Report) and Ventas, Inc. (VTR - Free Report) . While Lexington Realty and National Storage Affiliates are slated to report third-quarter earnings on Nov 5, Ventas will release earnings on Nov 6.
Note: Anything related to earnings presented in this write-up represents funds from operations (FFO) — a widely used metric to gauge the performance of REITs.
Breakout Biotech Stocks with Triple-Digit Profit Potential
The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.
Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +50%, +83% and +164% in as little as 2 months. The stocks in this report could perform even better.
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