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SL Green Realty Corp. (SLG - Free Report) recently raised its funds from operations (FFO) per share guidance for 2024. The company also announced lease renewal at 485 Lexington Avenue and transactions at 100 Park Avenue.
SL Green expects 2024 FFO per share of $7.65-$7.95, up from $7.45-$7.75 per share stated in the second quarter 2024 earnings release. This marks a 20 cents per share increase at the midpoint. This latest issued guidance is ahead of Zacks Consensus Estimate of $7.59 per share. The company also issued guidance for 2025 FFO per share of $5.25-$5.55.
Lease Renewal at 485 Lexington Avenue
Recently, SL Green announced that The Travelers Insurance Company has executed a lease renewal for 122,788 square feet at 485 Lexington Avenue. This insurance company will retain space on a portion of the seventh floor along with the entire eighth and ninth floors for an additional 10 years.
This transaction brings the total office leases signed by SL Green from the beginning of 2024 through Dec. 9, 2024, to 3.5 million square feet, while the company continues to hold a pipeline of more than 900,000 square feet. With an encouraging office leasing pipeline, the company remains well-positioned to navigate any challenging environment.
Series of Transactions at 100 Park Avenue
A new 15-year lease for 220,221 square feet has been signed by a global professional services firm, Alvarez & Marsal Holdings, LLC. This lease covers the third, fourth and seventh to ninth floors of 100 Park Avenue in Midtown Manhattan. As a result, the leased occupancy of the 36-story building now stands at 95.8%.
In addition, the company has made modifications to the existing $360 million mortgage. These modifications have extended the final maturity date to December 2027, with the interest rate remaining at 2.25% over Term SOFR. Furthermore, the lenders have offered a new $70 million future funding facility to assist with leasing expenses at the property.
Wrapping Up
Despite the overall choppiness in the office real estate sector, SL Green’s high-quality portfolio with class-apart amenities is well-poised for growth, given the recent new and renewal leases secured by the company. Its diversified tenant base is expected to drive steady cash flows and fuel its growth over the long term.
Shares of this Zacks Rank #3 (Hold) company have gained 45.3% over the past six months, outperforming the industry’s growth of 13.2%.
The Zacks Consensus Estimate for CareTrust’s 2024 FFO per share is pinned at $1.50, suggesting year-over-year growth of 6.4%.
The Zacks Consensus Estimate for OUTFRONT’s 2024 FFO per share stands at $1.73, indicating an increase of 5.5% from the year-ago reported figure.
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.
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SLG Raises 2024 FFO Guidance, Announces Lease Renewal & Transactions
SL Green Realty Corp. (SLG - Free Report) recently raised its funds from operations (FFO) per share guidance for 2024. The company also announced lease renewal at 485 Lexington Avenue and transactions at 100 Park Avenue.
SL Green expects 2024 FFO per share of $7.65-$7.95, up from $7.45-$7.75 per share stated in the second quarter 2024 earnings release. This marks a 20 cents per share increase at the midpoint. This latest issued guidance is ahead of Zacks Consensus Estimate of $7.59 per share. The company also issued guidance for 2025 FFO per share of $5.25-$5.55.
Lease Renewal at 485 Lexington Avenue
Recently, SL Green announced that The Travelers Insurance Company has executed a lease renewal for 122,788 square feet at 485 Lexington Avenue. This insurance company will retain space on a portion of the seventh floor along with the entire eighth and ninth floors for an additional 10 years.
This transaction brings the total office leases signed by SL Green from the beginning of 2024 through Dec. 9, 2024, to 3.5 million square feet, while the company continues to hold a pipeline of more than 900,000 square feet. With an encouraging office leasing pipeline, the company remains well-positioned to navigate any challenging environment.
Series of Transactions at 100 Park Avenue
A new 15-year lease for 220,221 square feet has been signed by a global professional services firm, Alvarez & Marsal Holdings, LLC. This lease covers the third, fourth and seventh to ninth floors of 100 Park Avenue in Midtown Manhattan. As a result, the leased occupancy of the 36-story building now stands at 95.8%.
In addition, the company has made modifications to the existing $360 million mortgage. These modifications have extended the final maturity date to December 2027, with the interest rate remaining at 2.25% over Term SOFR. Furthermore, the lenders have offered a new $70 million future funding facility to assist with leasing expenses at the property.
Wrapping Up
Despite the overall choppiness in the office real estate sector, SL Green’s high-quality portfolio with class-apart amenities is well-poised for growth, given the recent new and renewal leases secured by the company. Its diversified tenant base is expected to drive steady cash flows and fuel its growth over the long term.
Shares of this Zacks Rank #3 (Hold) company have gained 45.3% over the past six months, outperforming the industry’s growth of 13.2%.
Image Source: Zacks Investment Research
Stocks to Consider
Some better-ranked stocks from the broader REIT sector are CareTrust REIT (CTRE - Free Report) and OUTFRONT Media (OUT - Free Report) , each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for CareTrust’s 2024 FFO per share is pinned at $1.50, suggesting year-over-year growth of 6.4%.
The Zacks Consensus Estimate for OUTFRONT’s 2024 FFO per share stands at $1.73, indicating an increase of 5.5% from the year-ago reported figure.
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.