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SL Green Realty Corp. Reports Fourth Quarter And Full Year 2013 FFO Of $1.42 And $5.21 Per Share Before Transaction Costs; And EPS Of $0.39 And $1.10 Per Share

Stocks in this article: SLG

SL Green Realty Corp. (NYSE:SLG):

Financial and Operating Highlights

  • Fourth quarter FFO of $1.42 per share before transaction related costs of $0.04 per share compares with prior year FFO of $1.16 per share before transaction related costs of $0.02 per share. Full year FFO of $5.21 per share before transaction related costs of $0.05 per share compares with prior year FFO of $5.35 per share before transaction related costs of $0.07 per share. The prior year results reflect additional income of $67.9 million, or $0.73 per share, relating to profit from the recapitalization of 717 Fifth Avenue.
  • Fourth quarter net income attributable to common stockholders of $0.39 per share compares with prior year net income of $0.22 per share. Full year net income attributable to common stockholders of $1.10 per share compares with prior year net income of $1.74 per share.
  • Combined same-store cash NOI increased 3.1 percent and 3.0 percent for the fourth quarter and full year, respectively, compared to the prior year.
  • Increased the Company’s quarterly dividend by 52 percent to a new annual rate of $2.00 per share beginning with the fourth quarter dividend, which was paid in January 2014.
  • Signed a total of 57 Manhattan office leases covering 3,391,447 square feet during the fourth quarter, inclusive of the 2,634,670 square foot extension with an affiliate of Citigroup, Inc. The mark-to-market on the Citi extension was 12.8 percent and the mark-to-market on the remaining 756,777 square feet was 4.9 percent higher than the previously fully escalated rents on the same spaces.
  • Manhattan same-store occupancy, before reclassifying 317 Madison Avenue, 331 Madison Avenue and 51 East 42 nd Street to development, increased to 96.1 percent as of December 31, 2013, inclusive of leases signed but not yet commenced, as compared to 95.8 percent at September 30, 2013.
  • Signed a total of 35 Suburban office leases covering 183,896 square feet during the fourth quarter. The mark-to-market on signed Suburban office leases was 1.3 percent higher in the fourth quarter as compared to the previously fully escalated rents on the same spaces. Same-store occupancy for the Company’s Suburban portfolio increased to 82.1 percent, inclusive of leases signed but not yet commenced, at December 31, 2013 as compared to 81.2 percent at September 30, 2013.

Investing Highlights

  • Formed a joint venture that acquired a 49-year leasehold interest covering the entire retail portion of 650 Fifth Avenue in Manhattan. The venture subsequently entered an agreement to buy out the lease of retailer Juicy Couture, accelerating the venture’s ability to reposition the building's premier retail corner location.
  • Closed on the sale of the Company’s joint venture interest in 27-29 West 34 th Street in Manhattan for an allocated sales price of $70.1 million, and 21-25 West 34 th Street in Manhattan for an allocated sales price of $114.9 million.
  • Closed on the acquisition of an assemblage of retail development properties located on Fifth Avenue in Manhattan for $146.2 million.
  • Originated new debt investments totaling $412.3 million in the fourth quarter, of which the Company retained $79.7 million at a weighted average current yield of 10.2 percent, all of which are directly or indirectly collateralized by New York City commercial properties.

Financing Highlights

  • Issued 2.6 million shares of common stock, par value $0.01 per share, at a price of $95.94 per share, generating net proceeds of $248.9 million, after deducting offering expenses.
  • Closed on a $300.0 million refinancing of the Company’s debt and preferred equity liquidity facility.
  • Closed on a $79.2 million, 2.4 year loan extension of the mortgage at 16 Court Street in Brooklyn.

Summary

SL Green Realty Corp. (NYSE:SLG) today reported funds from operations, or FFO, of $134.5 million, or $1.38 per share, after giving consideration to transaction costs of $3.6 million, or $0.04 per share, for the quarter ended December 31, 2013, compared to $107.2 million, or $1.14 per share, after giving consideration to transaction costs of $1.5 million, or $0.02 per share for the same quarter in 2012. The Company also reported FFO of $491.6 million, or $5.16 per share, after giving consideration to transaction costs of $4.3 million, or $0.5 per share, for the year ended December 31, 2013, compared to $490.3 million, or $5.28 per share, after giving consideration to transaction costs of $6.6 million, or $0.07 per share, for the year ended December 31, 2012. The prior year results reflect additional income of $67.9 million, or $0.73 per share, relating to profit from the recapitalization of 717 Fifth Avenue.

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