This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

SL Green Realty Corp. Reports Third Quarter 2013 FFO Of $1.34 Per Share; And EPS Of $0.40 Per Share

To be added to the Company's distribution list or to obtain the latest news releases and other Company information, please visit our website at www.slgreen.com or contact Investor Relations at 212.594.2700.

Disclaimers

Non-GAAP Financial Measures

During the quarterly conference call, the Company may discuss non-GAAP financial measures as defined by SEC Regulation G. In addition, the Company has used non-GAAP financial measures in this press release. A reconciliation of each non-GAAP financial measure and the comparable GAAP financial measure can be found on pages 10 through 12 of this release and in the Company’s Supplemental Package.

Forward-looking Statement

This press release includes certain statements that may be deemed to be "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 and are intended to be covered by the safe harbor provisions thereof. All statements, other than statements of historical facts, included in this press release that address activities, events or developments that we expect, believe or anticipate will or may occur in the future, are forward-looking statements. Forward-looking statements are not guarantees of future performance and we caution you not to place undue reliance on such statements. Forward-looking statements are generally identifiable by the use of the words "may," "will," "should," "expect," "anticipate," "estimate," "believe," "intend," "project," "continue," or the negative of these words, or other similar words or terms.

Forward-looking statements contained in this press release are subject to a number of risks and uncertainties, many of which are beyond our control, that may cause our actual results, performance or achievements to be materially different from future results, performance or achievements expressed or implied by forward-looking statements made by us. Factors and risks to our business that could cause actual results to differ from those contained in the forward-looking statements are described in our filings with the Securities and Exchange Commission. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of future events, new information or otherwise.

       

SL GREEN REALTY CORP.

CONSOLIDATED STATEMENTS OF INCOME

(Unaudited and amounts in thousands, except per share data)

 

Three Months

Nine Months

Ended

Ended

September 30, September 30,
2013     2012 2013     2012
Revenues:
Rental revenue, net $ 264,349 $ 277,676 $ 804,104 $ 798,271
Escalation and reimbursement 45,091 42,194 125,018 124,273
Investment and preferred equity income 44,448 27,869 143,887 87,655
Other income 9,877   9,272   21,369   25,931  
Total revenues 363,765   357,011   1,094,378   1,036,130  
Expenses:
Operating expenses (including approximately $4,876 and $13,345 (2013) and $4,670 and $12,914 (2012) paid to related parties) 77,272 82,351 218,901 221,670
Real estate taxes 55,511 53,293 161,625 156,746
Ground rent 10,127 8,874 29,767 26,570
Interest expense, net of interest income 82,973 85,659 247,420 247,789
Amortization of deferred financing costs 4,331 4,493 13,034 11,626
Depreciation and amortization 87,473 81,827 248,587 233,566
Loan loss and other investment reserves, net of recoveries 564
Transaction related costs, net of recoveries (2,349 ) 1,372 719 4,398
Marketing, general and administrative 20,869   20,551   63,450   61,469  
Total expenses 336,207   338,420   983,503   964,398  
Income from continuing operations before equity in net income from unconsolidated joint ventures, equity in net (loss) gain on sale of interest in unconsolidated joint venture/real estate, gain (loss) on sale of investment in marketable securities, purchase price fair value adjustment, and loss on early extinguishment of debt 27,558 18,591 110,875 71,732
Equity in net income from unconsolidated joint ventures 2,939 11,658 4,251 80,988
Equity in net (loss) gain on sale of interest in unconsolidated joint venture/real estate (354 ) (4,807 ) (3,937 ) 17,776
Gain (loss) on sale of investment in marketable securities 2,237 (65 ) 2,237
Purchase price fair value adjustment (2,305 )
Loss on early extinguishment of debt     (18,523 )  
Income from continuing operations 30,143 27,679 90,296 172,733
Net income from discontinued operations 1,406 951 3,875 2,883
Gain on sale of discontinued operations 13,787     12,750   6,627  
Net income 45,336 28,630 106,921 182,243
Net income attributable to noncontrolling interests in the Operating Partnership (1,110 ) (567 ) (1,909 ) (4,876 )
Net income attributable to noncontrolling interests in other partnerships (2,901 ) (1,835 ) (8,806 ) (6,792 )
Preferred unit distributions (562 ) (571 ) (1,692 ) (1,533 )
Net income attributable to SL Green 40,763 25,657 94,514 169,042
Preferred stock redemption costs (10,010 ) (12,160 ) (10,010 )
Perpetual preferred stock dividends (3,738 ) (7,915 ) (18,144 ) (23,004 )
Net income attributable to SL Green common stockholders $ 37,025   $ 7,732   $ 64,210   $ 136,028  
 
Earnings Per Share (EPS)
Net income per share (Basic) $ 0.40 $ 0.09 $ 0.70 $ 1.53
Net income per share (Diluted) $ 0.40   $ 0.09   $ 0.70   $ 1.52  
 
Funds From Operations (FFO)
FFO per share (Basic) $ 1.34 $ 1.12 $ 3.78 $ 4.16
FFO per share (Diluted) $ 1.34   $ 1.12   $ 3.77   $ 4.14  
 
Basic ownership interest
Weighted average REIT common shares for net income per share 91,988 90,241 91,684 88,929
Weighted average partnership units held by noncontrolling interests 2,792   3,320   2,705   3,188  
Basic weighted average shares and units outstanding 94,780   93,561   94,389   92,117  
 
Diluted ownership interest
Weighted average REIT common share and common share equivalents 92,224 90,571 91,926 89,297
Weighted average partnership units held by noncontrolling interests 2,792   3,320   2,705   3,188  
Diluted weighted average shares and units outstanding 95,016   93,891   94,631   92,485  
 
       

SL GREEN REALTY CORP.

CONSOLIDATED BALANCE SHEETS

(Amounts in thousands, except per share data)

 
September 30,

2013

December 31,

2012

Assets (Unaudited)
Commercial real estate properties, at cost:
Land and land interests $ 2,868,833 $ 2,886,099
Building and improvements 7,440,543 7,389,766
Building leasehold and improvements 1,353,997 1,346,748
Properties under capital lease 50,332   40,340  

 

11,713,705

11,662,953

Less accumulated depreciation (1,574,002 ) (1,393,323 )
10,139,703 10,269,630
Assets held for sale 4,901
Cash and cash equivalents 209,098 189,984
Restricted cash 356,844 136,071
Investment in marketable securities 32,863 21,429
Tenant and other receivables, net of allowance of $22,383 and $21,652 in 2013 and 2012, respectively 51,354 48,544
Related party receivables 7,800 7,531
Deferred rents receivable, net of allowance of $29,508 and $29,580 in 2013 and 2012, respectively 374,615 340,747
Debt and preferred equity investments, net of discounts and deferred origination fees of $26,466 and $22,341 and allowance of and $4,000 and $7,000 in 2013 and 2012, respectively 1,315,551 1,348,434
Investments in unconsolidated joint ventures 1,109,815 1,032,243
Deferred costs, net 247,850 261,145
Other assets 729,426   718,326  
Total assets $ 14,574,919   $ 14,378,985  
 

Liabilities

 

Mortgages and other loans payable

$ 4,641,758 $ 4,615,464
Revolving credit facility 340,000 70,000
Term loan and senior unsecured notes 1,737,869 1,734,956
Accrued interest payable and other liabilities 69,359 73,769
Accounts payable and accrued expenses 167,719 159,598
Deferred revenue 293,393 312,995
Capitalized lease obligations 47,492 37,518
Deferred land leases payable 21,066 20,897
Dividend and distributions payable 34,749 37,839
Security deposits 54,824 46,253
Liabilities related to assets held for sale 136
Junior subordinate deferrable interest debentures held by trusts that issued trust preferred securities 100,000   100,000  
Total liabilities 7,508,229 7,209,425
 
Commitments and contingencies
Noncontrolling interest in the Operating Partnership 248,046 212,907
Series G preferred units, $25.00 liquidation preference, 1,902 issued and outstanding at both September 30, 2013 and December 31,2012 47,550 47,550
Series H preferred units, $25.00 liquidation preference, 80 issued and outstanding at both September 30, 2013 and December 31, 2012 2,000 2,000
 
Equity
SL Green Realty Corp. stockholders’ equity:
Series C Preferred stock, $0.01 par value, $25.00 liquidation preference, 7,700 issued and outstanding at December 31, 2012 180,340
Series I Preferred stock, $0.01 par value, $25.00 liquidation preference, 9,200 issued and outstanding at both September 30, 2013 and December 31, 2012 221,932 221,965
Common stock, $0.01 par value 160,000 shares authorized, 95,780 and 94,896 issued and outstanding at September 30, 2013 and December 31, 2012, respectively (inclusive of 3,566 and 3,646 shares held in Treasury at September 30, 2013 and December 31, 2012, respectively) 959 950
Additional paid-in capital 4,757,778 4,667,900
Treasury stock at cost (316,989 ) (322,858 )
Accumulated other comprehensive loss (19,249 ) (29,587 )
Retained earnings 1,636,584   1,701,092  
Total SL Green Realty Corp. stockholders’ equity 6,281,015 6,419,802
Noncontrolling interests in other partnerships 488,079   487,301  
Total equity 6,769,094   6,907,103  
Total liabilities and equity $ 14,574,919   $ 14,378,985  
 
       

SL GREEN REALTY CORP.

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES

(Amounts in thousands, except per share data)

 
Three Months Ended

September 30,

Nine Months Ended

September 30,

2013     2012 2013     2012

FFO Reconciliation:

Net income attributable to common stockholders $ 37,025 $ 7,732 $ 64,210 $ 136,028

Add:

Depreciation and amortization 87,473 81,827 248,587 233,566
Discontinued operations depreciation adjustments 1,602 3,212 4,758
Joint venture depreciation and noncontrolling interest adjustments 12,720 6,669 37,867 22,176
Net income attributable to noncontrolling interests 4,011 2,402 10,715 11,668

Less:

Gain on sale of discontinued operations 13,787 14,900 6,627
Equity in net (loss) gain on sale of interest in joint venture/real estate (354 ) (4,807 ) (3,937 ) 11,987
Purchase price fair value adjustment (2,305 )
Depreciable real estate reserve, net of recoveries (2,150 ) 5,789
Depreciation on non-rental real estate assets 416   220   1,004   697
Funds From Operations $ 127,380   $ 104,819   $ 357,079   $ 383,096
 
         
Consolidated Properties SL Green’s share of Unconsolidated Joint Ventures Combined
Three Months Ended

September 30,

Three Months Ended

September 30,

Three Months Ended

September 30,

Operating income and Same-store NOI Reconciliation:

2013     2012 2013     2012 2013   2012
Income from continuing operations before equity in net income from unconsolidated joint ventures, equity in net (loss) gain on sale of interest in unconsolidated joint venture/real estate, gain (loss) on sale of investment in marketable securities, purchase price fair value adjustment, and loss on early extinguishment of debt $ 27,558 $ 18,591

$

$

 
Equity in net income from unconsolidated joint ventures 2,939 11,658 2,939 11,658
Depreciation and amortization 87,473 81,827 21,203 15,347
Interest expense, net of interest income 82,973 85,659 20,031 19,901
Amortization of deferred financing costs 4,331 4,493 1,790 958
Loss on early extinguishment of debt       10,711  
Operating income $ 205,274   $ 202,228   $ 45,963   $ 58,575  
 
Marketing, general & administrative expense 20,869 20,551
Net operating income from discontinued operations 1,536 3,249
Loan loss and other investment reserves, net of recoveries
Transaction related costs, net of recoveries (2,349 ) 1,372 455
 
Non-building revenue (50,384 ) (31,877 ) (4,041 ) (4,350 )
Equity in net income from unconsolidated joint ventures (2,939 ) (11,658 )
Loss on early extinguishment of debt       (10,711 ) $ $
Net operating income (NOI) 172,007 183,865 41,922 43,969 213,929 227,834
 
 
NOI from discontinued operations (1,536 ) (3,249 ) (1,536 ) (3,249 )
NOI from other properties/affiliates (11,356 ) (16,181 ) (16,440 ) (18,995 ) (27,796 ) (35,176 )
Same-Store NOI $ 159,115   $ 164,435   $ 25,482   $ 24,974   $ 184,597   $ 189,409  
 
Ground lease straight-line adjustment 1,232 172 1,232 172
 
Straight-line and free rent (12,273 ) (12,006 ) (671 ) (795 ) (12,944 ) (12,801 )
Rental income – FAS 141 4,023   (2,557 ) (333 ) (366 ) 3,690   (2,923 )
Same-store cash NOI $ 152,097   $ 150,044   $ 24,478   $ 23,813   $ 176,575   $ 173,857  
 
    Consolidated Properties     SL Green’s share of Unconsolidated Joint Ventures   Combined

Nine Months

Nine Months

Nine Months

Ended

September 30,

Ended

September 30,

Ended

September 30,

Operating income and Same-store NOI Reconciliation:

2013     2012 2013     2012 2013   2012
Income from continuing operations before equity in net income from unconsolidated joint ventures, equity in net (loss) gain on sale of interest in unconsolidated joint venture/real estate, gain (loss) on sale of investment in marketable securities, purchase price fair value adjustment, and loss on early extinguishment of debt $ 110,875 $ 71,732

$

$

 
Equity in net income from unconsolidated joint ventures 4,251 80,988 4,251 80,988
Depreciation and amortization 248,587 233,566 63,459 47,197
Interest expense, net of interest income 247,420 247,789 59,419 64,728
Amortization of deferred financing costs 13,034 11,626 7,131 2,755
Loss on early extinguishment of debt (18,523 )     10,711  
Operating income $ 605,644   $ 645,701   $ 134,260   $ 206,379  
 
Marketing, general & administrative expense 63,450 61,469
Net operating income from discontinued operations 7,548 9,361
Loan loss and other investment reserves, net of recoveries 564
Transaction related costs, net of recoveries 719 4,398 15 654
 
Non-building revenue (152,165 ) (98,085 ) (12,254 ) (79,472 )
Equity in net income from unconsolidated joint ventures (4,251 ) (80,988 )
Loss on early extinguishment of debt 18,523       (10,711 ) $ $
Net operating income (NOI) 539,468 542,420 122,021 116,850 661,489 659,270
 
 
NOI from discontinued operations (7,548 ) (9,361 ) (7,548 ) (9,361 )
NOI from other properties/affiliates (31,064 ) (30,663 ) (45,211 ) (42,983 ) (76,275 ) (73,646 )
Same-Store NOI $ 500,856   $ 502,396   $ 76,810   $ 73,867   $ 577,666   $ 576,263  
 
Ground lease straight-line adjustment 4,353 516 4,353 516
 
Straight-line and free rent (36,815 ) (42,601 ) (2,285 ) (1,909 ) (39,100 ) (44,510 )
Rental income – FAS 141 (2,002 ) (7,455 ) (2,192 ) (971 ) (4,194 ) (8,426 )
Same-store cash NOI $ 466,392   $ 452,856   $ 72,333   $ 70,987   $ 538,725   $ 523,843  
 
         

SL GREEN REALTY CORP.

SELECTED OPERATING DATA-UNAUDITED

 
September 30,
2013     2012
Manhattan Operating Data: (1)
Net rentable area at end of period (in 000’s) 23,947 24,135
Portfolio percentage leased at end of period 94.4% 93.7%
Same-Store percentage leased at end of period 94.4% 93.9%
Number of properties in operation 35 35
 
Office square feet where leases commenced during quarter (rentable) 364,992 215,337
Average mark-to-market percentage-office (5.0)% (7.4)%
Average starting cash rent per rentable square foot-office $56.78 $48.73
 

(1) Includes wholly-owned and joint venture properties.

 

The following table reconciles estimated earnings per share (diluted) to FAD per share (diluted) for the year ending December 31, 2013.

    Year Ending December 31,
2013     2013
 
Net income attributable to SL Green common stockholders $

1.05

$ 1.08

Add:

Depreciation and amortization 3.52 3.52
Unconsolidated joint venture depreciation and noncontrolling interest adjustments 0.53 0.53
Net income attributable to noncontrolling interests 0.11 0.12

Less:

Gain on sale of discontinued operations 0.16 0.16
Equity in net gain on sale of interest in unconsolidated joint venture / real estate (0.04 ) (0.04 )
Purchase price fair value adjustment (0.02 ) (0.02 )
Depreciable real estate, net of recoveries (0.02 ) (0.02 )
Depreciation and amortization on non-rental real estate assets 0.01   0.01  
Funds from Operations $

5.12

  $ 5.16  
 
Non-cash adjustments
Second cycle capital   (1.61 )   (1.61 )
Funds Available for Distribution $

3.51

  $ 3.55  




7 of 8

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,912.11 -70.48 -0.42%
S&P 500 1,969.95 -8.96 -0.45%
NASDAQ 4,442.6980 -2.2110 -0.05%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs