SL Green Closes Credit Facility

SL Green Realty Corp. (SLG - Snapshot Report) recently announced that it has closed on a new $1.5 billion unsecured revolving credit facility, replacing the company’s previous $1.5 billion unsecured revolving credit facility, maturing in June 2012.

The new investment facility currently bears interest at 150 basis points over LIBOR, and matures in November 2016, including an extension option, and features a more flexible structure.

The new credit facility is expected to enable the company to pursue future growth opportunities  and  enhance the flexibility to fund growth going forward.

During the recently concluded quarter, SL Green Realty reported funds from operations or FFO of $87.9 million or $1.00 per share compared with $145.3 million or $1.82 per share in the year-earlier quarter.

Funds From Operations, a widely used metric to gauge the performance of REITs, is obtained after adding depreciation and amortization and other non-cash expenses to net income.

As of September 30, 2011 SL Green Realty had cash and cash equivalents of $394.5 million and revolving credit facility of $500.million.

SL Green Realty is a real estate investment trust (REIT) that predominantly acquires, owns, repositions and manages Manhattan office properties. As of September 30, 2011, SL Green owned interests in 58 Manhattan properties totaling more than 35.3 million square feet. This included ownership interests in 25.8 million square feet of commercial properties and debt and preferred equity investments secured by 9.5 million square feet of properties.

SL Green Realty currently retains a Zacks #3 Rank, which translates into a short-term Hold rating. We are also maintaining our long-term Neutral recommendation on the stock. One of its competitors, Boston Properties Inc. (BXP - Analyst Report) also holds a Zacks #3 Rank.

Read the full analyst report on BXP

Read the full analyst report on SLG