Back to top

Analyst Blog

This page is temporarily not available.  Please check later as it should be available shortly. If you have any questions, please email customer support at support@zacks.com or call 800-767-3771 ext.  9339.

As part of its efforts to expand its retail investment portfolio, SL Green Realty Corp. (SLG - Snapshot Report) acquired interest in 650 Fifth Avenue through a joint venture.

In particular, SL Green formed a venture along with its partner Jeff Sutton and purchased a 49-year leasehold interest encompassing the whole retail section of 650 Fifth Avenue. Notably, the deal, accomplished with the earlier U.S. Magistrate Judge Kathleen A. Roberts, the federal monitor and interim trustee of the landlord, 650 Fifth Avenue Company, offers SL Green significant prospects to solidify its partnership position in the renowned Fifth Avenue luxury retail corridor.   

The company already has its presence in this region. SL Green along with Sutton enjoys control over the 717 Fifth Avenue property, featuring the Giorgio Armani and Dolce & Gabbana flagships, 720 Fifth Avenue that houses retailer Abercrombie & Fitch Co. (ANF - Analyst Report) and 724 Fifth Avenue that has Prada’s flagship store.

SL Green is further seeking to tab opportunities in New York City’s premium retail locations with its retail investments favorably complementing its core office and structured finance businesses.

We believe that this diversification of investments in retail properties would offer SL Green sufficient growth prospects going forward. As a matter of fact, this real estate investment trust (REIT) reported encouraging third-quarter 2013 results last month with an earnings surprise of 4.69%.

Particularly, its funds from operations (FFO) of $1.34 per share were 19.6% ahead of the prior-year quarter figure. The results came on the back of better-than-expected revenue growth. The company also hiked its dividend by 52% to 50 cents from 33 cents in the prior quarter and raised its 2013 FFO per share outlook.

SL Green currently has a Zacks Rank #3 (Hold). Some better performing REITs include Chatham Lodging Trust (CLDT - Snapshot Report) and Getty Realty Corp. (GTY - Snapshot Report). Both these stocks hold a Zacks Rank #1 (Strong Buy).

Note: Funds from operations, a widely accepted and reported measure of REITs performance, are derived by adding depreciation, amortization and other non-cash expenses to net income.

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

Learn more

Start for as little as $4.50 per trade.

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
LAKE SHORE G LSG 0.77 +6.05%
QUESTCOR PHA QCOR 80.07 +2.47%
VIPSHOP HOLD VIPS 156.35 +1.82%
ENLINK MIDST ENLC 36.29 +1.60%
BNC BANCORP BNCN 17.33 +1.58%