SL Green Realty Corp. Reports Third Quarter 2024 Financial Results
SL Green Realty Corp. unveiled its financial results for the third quarter ending September 30, 2024, revealing significant insights into the company's operational and financial performance amid ongoing market challenges.
Key Financial Metrics
| Metric | Q3 2024 | Q3 2023 | YoY Change | Consensus Estimates |
|---|---|---|---|---|
| Earnings Per Share (EPS) | ($0.21) | ($0.38) | 44.7% Improvement | ($0.50) |
SL Green Realty reported a net loss per share of $0.21, compared to a loss of $0.38 per share last year, marking an improvement in its earnings performance despite persistent challenges. The funds from operations (FFO) per share decreased from $1.27 in Q3 2023 to $1.13 in the current quarter, affected by non-recurring, non-cash fair value adjustments.
Revenue by Segments
| Segment | Q3 2024 Revenue Contribution | Mark-to-Market Increase |
|---|---|---|
| Manhattan Office Leases | 763,755 sq ft | 10.8% |
SL Green's revenue performance showcased robust leasing activity with 42 new Manhattan office leases, resulting in a 10.8% increase in mark-to-market rents for the third quarter, signaling a positive traction in leasing rates and demand for premium office spaces in its portfolio.
Key Developments and Operational Highlights
- Signed early renewals and expansions, including a significant lease with Bloomberg, L.P. for 924,876 square feet.
- Completed the sale of the Palisades Premier Conference Center, generating net proceeds of $19.8 million.
- Extended and modified strategic debt amounting to $2.6 billion in Q3, part of the plan to refinance $5 billion of existing debt.
- Expanded the special servicing business, now covering $5.0 billion in active assignments.
Executive Commentary
Company leadership highlighted SL Green's strategic focus on maintaining high occupancy rates and navigating the financial landscape through refinements in their debt portfolio. CEO Marc Holliday emphasized efforts on further strengthening Manhattan's leasing activity and thereby increasing overall occupancy.
Dividends
SL Green declared three monthly ordinary dividends of $0.25 per share for the third quarter, marking an annualized dividend of $3.00 per share. Additionally, a quarterly dividend of $0.40625 per share was approved for Series I Cumulative Redeemable Preferred Stock.
Forward Guidance
Although specific financial guidance was not explicitly provided, the company anticipates increasing its Manhattan same-store office occupancy to 92.5% by December 31, 2024, reflecting continued growth in leasing activity.
Stock Price Movement
Following the earnings release, SL Green's stock observed a positive shift of approximately 1.32%, indicating favorable market reception to the strategic directions and financial health of the company.
With these comprehensive insights, SL Green Realty Corp. maintains a strategic trajectory in solidifying its presence as Manhattan's leading office landlord while optimizing its financial resilience amid a volatile market environment.
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