We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Why Is SL Green (SLG) Up 11.6% Since Last Earnings Report?
Read MoreHide Full Article
A month has gone by since the last earnings report for SL Green (SLG - Free Report) . Shares have added about 11.6% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is SL Green due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
SL Green's Q4 FFO and Revenues Fall Shy of Estimates
SL Green Realty delivered fourth-quarter 2021 FFO per share of $1.52, lagging the Zacks Consensus Estimate of $1.57. Further, the reported figure compared unfavorably with the year-ago quarter’s $1.56.
SL Green’s fourth-quarter performance reflects drop in occupancy.
Moreover, the net rental revenues of $135.2 million in the fourth quarter lagged the Zacks Consensus Estimate of $142.4 million. The top line also declined 18.2% from the prior-year quarter’s $165.2 million.
For 2021, SL Green’s FFO per share of $6.63 lagged the Zacks Consensus Estimate of $6.83. Moreover, the figure dipped 3.9% from the prior year’s $7.11. The net revenues of $604.6 million declined 14.6% from the prior year’s $708.4 million. Moreover, the reported figure missed the Zacks Consensus Estimate of $611.9 million.
Concurrent with the earnings release, SL Green announced that it signed leases totaling 573,806 square feet during the fourth quarter of 2021. SLG inked two new leases with Tennor Holding B.V. and Cipher Mining at its development, One Vanderbilt. In addition, the REIT signed a 10-year, 81,693 square foot lease at 1185 Avenue of the Americas with Northeast Series of Lockton Companies, LLC.
Quarter in Detail
During the fourth quarter, the same-store cash NOI, including SL Green’s share of same-store cash NOI from unconsolidated joint ventures, increased 2.9% year over year. This excludes the lease termination income.
In its Manhattan portfolio, the company signed 52 office leases for 573,806 square feet in the reported quarter. For the same period, the mark-to-market on signed Manhattan office leases dipped 3.9% from the previous fully-escalated rents on the same spaces.
For the Manhattan office leases signed in fourth-quarter 2021, the average lease term was 5.9 years, while the average tenant concessions were 7 months of free rent with a tenant improvement allowance of $56.17 per rentable square foot. This excludes the leases signed at One Vanderbilt Avenue.
As of Dec 31, 2021, Manhattan’s same-store office occupancy, inclusive of 183,000 square feet of leases signed but not yet commenced, was 93%, having shrunk 20 basis points from the prior quarter’s level.
The carrying value of its debt and preferred equity portfolio was $1.09 billion as of Dec 31, 2021.
Liquidity
SL Green exited fourth-quarter 2021 with cash and cash equivalents of $251.4 million, down from $257.9 million recorded at the end of the third quarter.
Investment Activity
During 2021 and year to date in 2022, SL Green has repurchased 5.1 million shares of its common stock.
In the fourth quarter, the company closed the previously announced sale of the office and garage condominiums at 110 East 42nd Street for a gross sale price of $117.1 million.
SL Green concluded the sale of a 25% interest in One Madison Avenue. The same also wrapped up the sale of 590 Fifth Avenue for a gross sale price of $103 million.
The company entered into an agreement to sell 707 Eleventh Avenue for a gross sale price of $95 million.
Additionally, SLG Green reached an agreement to sell the leasehold interest in 1080 Amsterdam Avenue for a gross sale price of $42.5 million.
Dividends
During the fourth quarter, SL Green announced three monthly dividends of 30.33 cents per share on its common stock, which were paid out in November, December and January, equating to an annualized dividend of $3.73 per share. This marked a 2.5% increase in SLG’s ordinary dividend.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates revision.
VGM Scores
Currently, SL Green has a poor Growth Score of F, however its Momentum Score is doing a lot better with an A. However, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. It's no surprise SL Green has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Why Is SL Green (SLG) Up 11.6% Since Last Earnings Report?
A month has gone by since the last earnings report for SL Green (SLG - Free Report) . Shares have added about 11.6% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is SL Green due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
SL Green's Q4 FFO and Revenues Fall Shy of Estimates
SL Green Realty delivered fourth-quarter 2021 FFO per share of $1.52, lagging the Zacks Consensus Estimate of $1.57. Further, the reported figure compared unfavorably with the year-ago quarter’s $1.56.
SL Green’s fourth-quarter performance reflects drop in occupancy.
Moreover, the net rental revenues of $135.2 million in the fourth quarter lagged the Zacks Consensus Estimate of $142.4 million. The top line also declined 18.2% from the prior-year quarter’s $165.2 million.
For 2021, SL Green’s FFO per share of $6.63 lagged the Zacks Consensus Estimate of $6.83. Moreover, the figure dipped 3.9% from the prior year’s $7.11. The net revenues of $604.6 million declined 14.6% from the prior year’s $708.4 million. Moreover, the reported figure missed the Zacks Consensus Estimate of $611.9 million.
Concurrent with the earnings release, SL Green announced that it signed leases totaling 573,806 square feet during the fourth quarter of 2021. SLG inked two new leases with Tennor Holding B.V. and Cipher Mining at its development, One Vanderbilt. In addition, the REIT signed a 10-year, 81,693 square foot lease at 1185 Avenue of the Americas with Northeast Series of Lockton Companies, LLC.
Quarter in Detail
During the fourth quarter, the same-store cash NOI, including SL Green’s share of same-store cash NOI from unconsolidated joint ventures, increased 2.9% year over year. This excludes the lease termination income.
In its Manhattan portfolio, the company signed 52 office leases for 573,806 square feet in the reported quarter. For the same period, the mark-to-market on signed Manhattan office leases dipped 3.9% from the previous fully-escalated rents on the same spaces.
For the Manhattan office leases signed in fourth-quarter 2021, the average lease term was 5.9 years, while the average tenant concessions were 7 months of free rent with a tenant improvement allowance of $56.17 per rentable square foot. This excludes the leases signed at One Vanderbilt Avenue.
As of Dec 31, 2021, Manhattan’s same-store office occupancy, inclusive of 183,000 square feet of leases signed but not yet commenced, was 93%, having shrunk 20 basis points from the prior quarter’s level.
The carrying value of its debt and preferred equity portfolio was $1.09 billion as of Dec 31, 2021.
Liquidity
SL Green exited fourth-quarter 2021 with cash and cash equivalents of $251.4 million, down from $257.9 million recorded at the end of the third quarter.
Investment Activity
During 2021 and year to date in 2022, SL Green has repurchased 5.1 million shares of its common stock.
In the fourth quarter, the company closed the previously announced sale of the office and garage condominiums at 110 East 42nd Street for a gross sale price of $117.1 million.
SL Green concluded the sale of a 25% interest in One Madison Avenue. The same also wrapped up the sale of 590 Fifth Avenue for a gross sale price of $103 million.
The company entered into an agreement to sell 707 Eleventh Avenue for a gross sale price of $95 million.
Additionally, SLG Green reached an agreement to sell the leasehold interest in 1080 Amsterdam Avenue for a gross sale price of $42.5 million.
Dividends
During the fourth quarter, SL Green announced three monthly dividends of 30.33 cents per share on its common stock, which were paid out in November, December and January, equating to an annualized dividend of $3.73 per share. This marked a 2.5% increase in SLG’s ordinary dividend.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates revision.
VGM Scores
Currently, SL Green has a poor Growth Score of F, however its Momentum Score is doing a lot better with an A. However, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. It's no surprise SL Green has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months.