SL Green Realty Corp. (SLG Quick QuoteSLG - Free Report) reported first-quarter 2022 funds from operations (FFO) per share of $1.65, beating the Zacks Consensus Estimate by a cent.

Results reflect a better-than-expected top-line number. SLG also experienced healthy leasing activity in the quarter.

Net rental revenues of $136.5 million in the first quarter surpassed the Zacks Consensus Estimate of $135.4 million.

However, the reported FFO per share compared unfavorably with the year-ago quarter’s $1.73. Also, net rental revenues declined 16.2% from the prior-year quarter’s $162.8 million.

Concurrent with the first-quarter earnings release, SL Green announced a contract with Oxford Properties to buy 450 Park Avenue for $445 million. This transaction is expected to close in the second quarter, subject to customary closing norms.

Quarter in Detail

During the first quarter, the same-store cash net operating income (NOI), including SL Green’s share of same-store cash NOI from unconsolidated joint ventures, increased 9.3% year over year. This excludes the lease termination income.

For its Manhattan portfolio, SL Green signed 37 office leases encompassing 820,989 square feet of space. This included three new leases at One Vanderbilt Avenue, taking its total leased figure to 97%. For the same period, the mark-to-market on signed Manhattan office leases decreased 15.1% from the previous fully-escalated rents on the same spaces.

The average lease term for the office leases signed was 9.8 years, while average tenant concessions were 12 months of free rent with a tenant improvement allowance of $108.34 per rentable square foot. This excludes the leases signed at One Vanderbilt Avenue and One Madison Avenue.

As of Mar 31, 2022, Manhattan’s same-store office occupancy, inclusive of 275,295 square feet of leases signed but not yet commenced, was 92.7%, having shrunk 30 basis points from the prior quarter’s level.

As of Mar 31, 2022, the carrying value of the company’s debt and preferred equity portfolio was $1.1 billion.

Liquidity

SL Green exited first-quarter 2022 with cash and cash equivalents of $223.6million, down from $251.4 million recorded at the end of 2021.

Investment Activity

From the beginning of 2022 through Apr 20, SL Green repurchased 2 million shares of its common stock.

In February, SLG closed on the previously announced sale of its ownership interest at 707 Eleventh Avenue for a gross sale price of $95 million, generating net cash proceeds of $91.3 million.

SL Green currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

SL Green Realty Corporation Price, Consensus and EPS Surprise

SL Green Realty Corporation price-consensus-eps-surprise-chart | SL Green Realty Corporation Quote

Upcoming Earnings Releases

It’s time to look forward to the earnings releases of REITs like Alexandria Real Estate Equities (ARE Quick QuoteARE - Free Report) , Duke Realty and SBA Communications (SBAC Quick QuoteSBAC - Free Report) .

Alexandria and SBA Communications are slated to release first-quarter 2022 results on Apr 25, while Duke Realty is scheduled to report on Apr 27.

The Zacks Consensus Estimate for Alexandria’s first-quarter 2022 FFO per share is pegged at $2.00, suggesting an increase of 4.7%from the year-ago quarter’s reported figure. ARE currently carries a Zacks Rank #2 (Buy).

The Zacks Consensus Estimate for SBA Communications’ first-quarter 2022 FFO per share stands at $2.88, indicating an increase of 11.6% from the prior-year period’s reported figure. SBAC currently has a Zacks Rank #3.

The Zacks Consensus Estimate for Duke Realty’s first-quarter 2022 FFO per share is pegged at 44 cents, implying an increase of 12.8% from the year-earlier quarter’s reported figure. DRE currently carries a Zacks Rank of 3.

Note: Anything related to earnings presented in this write-up represents funds from operations (FFO) — a widely used metric to gauge the performance of REITs.