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SL Green (SLG) Secures Retail Leases, Reveals Property Sales
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SL Green Realty Corp. (SLG - Free Report) recently announced that it has inked retail leases and closed on the sale of three properties. The company is also under contract to sell the exclusive Giorgio Armani Residences at 760 Madison Avenue.
Since the end of the first quarter of 2024, the company has signed retail leases covering 66,014 square feet, achieving full retail occupancy at One Madison Avenue.
The retail leasing accomplishments at One Madison Avenue encompass a range of culinary options.
Among these accomplishments is a 15-year lease, totaling 11,983 square feet from La Tête d’Or by Daniel. The first steakhouse by Chef Daniel Boulud is scheduled to open later this year. The owners of Pasquale Jones and Charlie Bird from Delicious Hospitality Group, with a 15-year lease, will be opening a new seafood-focused restaurant encompassing 13,558 square feet.
Los Tacos No. 1, a popular taqueria known for its authentic Mexican cuisine, secured a 15-year lease agreement on 4,032 square feet of space. A restaurant brand, Sweetgreen, has signed a 10-year lease agreement covering 3,917 square feet. This restaurant is famous for its salads, plates and bowls.
Other notable retail leases in the company’s portfolio include a new 15-year lease at 461 Fifth Avenue signed by Brasserie Cognac for a 13,687 square feet of space. Meanwhile, Chase Bank renewed its 4,718-square-foot lease for five years at 810 Seventh Avenue.
SL Green has completed the sale of three properties, comprising 625 Madison Avenue, 719 Seventh Avenue and the Palisades Premier Conference Center, for a total of $691.4 million. The company received net proceeds of $222.7 million from the transaction, which were utilized for corporate debt repayment.
SL Green also unveiled the sellout of the exclusive Giorgio Armani Residences on Manhattan's Upper East Side. All 10 residential units in this luxury condominium project are now under contract for a gross consideration of $168.2 million. The sales are scheduled to be concluded in the fourth quarter of 2024.
With encouraging leases executed over the past few quarters, the company remains well-positioned to navigate the challenging environment. Its long-term leases with a diverse tenant base, with a strong credit profile, assure stable rental revenues. Some notable leases in the second quarter of 2024 and to date in July 2024 include a renewal and expansion lease with Ares Management for 307,336 square feet at 245 Park Avenue and a new lease with Elliot Management Corporation for 149,437 square feet at 280 Park Avenue.
This week, SL Green came up with a solid second-quarter 2024 performance. The company reported funds from operations (FFO) per share of $2.05, which outpaced the Zacks Consensus Estimate of $1.62. It had reported an FFO of $1.43 per share a year ago. The results reflected decent leasing activity in its Manhattan portfolio.
SL Green has also increased its 2024 FFO per share outlook and now expects it in the range of $7.45-$7.75 compared with $7.35-$7.65 guided earlier. This marks a 10 cents per share increase at the midpoint and reflects the superior performance of the real estate portfolio and SUMMIT One Vanderbilt, along with additional fee generation.
Despite a choppy office real estate environment, SL Green has the capability to tide over the near-term industry challenges with its solid portfolio, long-term leases from tenants and its prudent capital-management practices. This positions it well for growth.
Over the past three months, shares of this Zacks Rank #3 (Hold) company have gained 19.7% compared with the industry’s rise of 15.5%.
The Zacks Consensus Estimate for Cousins Properties’ 2024 FFO per share stands at $2.65, indicating an increase of 1.2% from the year-ago reported figure.
The Zacks Consensus Estimate for Host Hotels & Resorts’ 2024 FFO per share is pinned at $2.01, suggesting year-over-year growth of 4.7%.
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) Secures Retail Leases, Reveals Property Sales
SL Green Realty Corp. (SLG - Free Report) recently announced that it has inked retail leases and closed on the sale of three properties. The company is also under contract to sell the exclusive Giorgio Armani Residences at 760 Madison Avenue.
Since the end of the first quarter of 2024, the company has signed retail leases covering 66,014 square feet, achieving full retail occupancy at One Madison Avenue.
The retail leasing accomplishments at One Madison Avenue encompass a range of culinary options.
Among these accomplishments is a 15-year lease, totaling 11,983 square feet from La Tête d’Or by Daniel. The first steakhouse by Chef Daniel Boulud is scheduled to open later this year. The owners of Pasquale Jones and Charlie Bird from Delicious Hospitality Group, with a 15-year lease, will be opening a new seafood-focused restaurant encompassing 13,558 square feet.
Los Tacos No. 1, a popular taqueria known for its authentic Mexican cuisine, secured a 15-year lease agreement on 4,032 square feet of space. A restaurant brand, Sweetgreen, has signed a 10-year lease agreement covering 3,917 square feet. This restaurant is famous for its salads, plates and bowls.
Other notable retail leases in the company’s portfolio include a new 15-year lease at 461 Fifth Avenue signed by Brasserie Cognac for a 13,687 square feet of space. Meanwhile, Chase Bank renewed its 4,718-square-foot lease for five years at 810 Seventh Avenue.
SL Green has completed the sale of three properties, comprising 625 Madison Avenue, 719 Seventh Avenue and the Palisades Premier Conference Center, for a total of $691.4 million. The company received net proceeds of $222.7 million from the transaction, which were utilized for corporate debt repayment.
SL Green also unveiled the sellout of the exclusive Giorgio Armani Residences on Manhattan's Upper East Side. All 10 residential units in this luxury condominium project are now under contract for a gross consideration of $168.2 million. The sales are scheduled to be concluded in the fourth quarter of 2024.
With encouraging leases executed over the past few quarters, the company remains well-positioned to navigate the challenging environment. Its long-term leases with a diverse tenant base, with a strong credit profile, assure stable rental revenues. Some notable leases in the second quarter of 2024 and to date in July 2024 include a renewal and expansion lease with Ares Management for 307,336 square feet at 245 Park Avenue and a new lease with Elliot Management Corporation for 149,437 square feet at 280 Park Avenue.
This week, SL Green came up with a solid second-quarter 2024 performance. The company reported funds from operations (FFO) per share of $2.05, which outpaced the Zacks Consensus Estimate of $1.62. It had reported an FFO of $1.43 per share a year ago. The results reflected decent leasing activity in its Manhattan portfolio.
SL Green has also increased its 2024 FFO per share outlook and now expects it in the range of $7.45-$7.75 compared with $7.35-$7.65 guided earlier. This marks a 10 cents per share increase at the midpoint and reflects the superior performance of the real estate portfolio and SUMMIT One Vanderbilt, along with additional fee generation.
Despite a choppy office real estate environment, SL Green has the capability to tide over the near-term industry challenges with its solid portfolio, long-term leases from tenants and its prudent capital-management practices. This positions it well for growth.
Over the past three months, shares of this Zacks Rank #3 (Hold) company have gained 19.7% compared with the industry’s rise of 15.5%.
Image Source: Zacks Investment Research
Stocks to Consider
Some better-ranked stocks from the broader REIT sector are Cousins Properties (CUZ - Free Report) and Host Hotels & Resorts (HST - Free Report) , each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for Cousins Properties’ 2024 FFO per share stands at $2.65, indicating an increase of 1.2% from the year-ago reported figure.
The Zacks Consensus Estimate for Host Hotels & Resorts’ 2024 FFO per share is pinned at $2.01, suggesting year-over-year growth of 4.7%.
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.