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.
SL Green Boosts Liquidity to $1B, Collects 84.7% of May Rents
Read MoreHide Full Article
SL Green Realty Corp. (SLG - Free Report) provided insights on recent activities and progress on key initiatives.
Since April 2020, the company has completed or placed under contract dispositions and joint ventures (JV) totaling $919.3 million of transaction value.
This includes the completed sale of the unencumbered retail condominium at 609 5th Avenue for $168 million as well as the sale of a 49.5% JV stake in One Madison Avenue to the National Pension Service of Korea and Hines Interest, LP.
Moreover, in its debt and preferred equity (“DPE”) portfolio, the company sold five DPE positions totaling $259.1 million of proceeds at 99.5% of book value and received repayments amounting to $226 million of proceeds. Part of the proceeds from the activities was used to fully pay down the company’s DPE financing facility. On the back of the transactions, SL Green generated $485.1 million in cash.
In fact, through the loan refinancing, sales and repayment of existing positions in the DPE portfolio, the sale of real estate assets and the stake sale, the company achieved its aim to bolster the liquidity position to $1 billion, a month ahead of the schedule.
The significant cash pile up enabled the company to restart its share-repurchase program. From the start of the year through Jun 1, it repurchased $44.1 million of common stock.
Moreover, the company is making progress in its development and redevelopment projects. In fact, its 1.7-million-square foot, 1,401-foot tall One Vanderbilt Avenue remains ahead of schedule and more than $100 million under budget. The skyscraper is presently 67% leased and is likely to obtain its Temporary Certificate of Occupancy (“TCO”) on or before Sep 14, 2020.
Moreover, the company’s overall April rent collections have now increased to 89.1% from 85.7% as of Apr 30. In fact, rent collections from office and retail tenants have improved to 95.1% and 63.3% from 91.8% and 60%, respectively, in April.
Additionally, to date, overall May rent collections totaled 84.7%, consisting of 91.1% for office and 54.7% for retail billings. Management expects the numbers to increase further in June as some tenants have delayed making payments.
Amid the COVID-19 crisis, SL Green has collected the majority of its property billings. This reflects the high credit quality of the company’s tenants.
Alexander Baldwin Holdings, Inc.’s (ALEX - Free Report) Zacks Consensus Estimate for 2020 funds from operations (FFO) per share has been unchanged at 83 cents over the past month. The company currently flaunts a Zacks Rank of 1.
One Liberty Properties, Inc.’s (OLP - Free Report) FFO per share estimate for the ongoing year has been unchanged at $1.89 over the past 30 days. The company currently flaunts a Zacks Rank of 1.
Gladstone Land Corporation’s (LAND - Free Report) FFO per share estimate for 2020 has moved 3% upward to 68 cents over the past month. Further, it currently carries a Zacks Rank of 2 (Buy).
Note: Anything related to earnings presented in this write-up represent funds from operations (FFO) — a widely used metric to gauge the performance of REITs.
5 Stocks to Soar Past the Pandemic: In addition to the companies you learned about above, we invite you to learn about 5 cutting-edge stocks that could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of the decade.
Image: Bigstock
SL Green Boosts Liquidity to $1B, Collects 84.7% of May Rents
SL Green Realty Corp. (SLG - Free Report) provided insights on recent activities and progress on key initiatives.
Since April 2020, the company has completed or placed under contract dispositions and joint ventures (JV) totaling $919.3 million of transaction value.
This includes the completed sale of the unencumbered retail condominium at 609 5th Avenue for $168 million as well as the sale of a 49.5% JV stake in One Madison Avenue to the National Pension Service of Korea and Hines Interest, LP.
Moreover, in its debt and preferred equity (“DPE”) portfolio, the company sold five DPE positions totaling $259.1 million of proceeds at 99.5% of book value and received repayments amounting to $226 million of proceeds. Part of the proceeds from the activities was used to fully pay down the company’s DPE financing facility. On the back of the transactions, SL Green generated $485.1 million in cash.
In fact, through the loan refinancing, sales and repayment of existing positions in the DPE portfolio, the sale of real estate assets and the stake sale, the company achieved its aim to bolster the liquidity position to $1 billion, a month ahead of the schedule.
The significant cash pile up enabled the company to restart its share-repurchase program. From the start of the year through Jun 1, it repurchased $44.1 million of common stock.
Moreover, the company is making progress in its development and redevelopment projects. In fact, its 1.7-million-square foot, 1,401-foot tall One Vanderbilt Avenue remains ahead of schedule and more than $100 million under budget. The skyscraper is presently 67% leased and is likely to obtain its Temporary Certificate of Occupancy (“TCO”) on or before Sep 14, 2020.
Moreover, the company’s overall April rent collections have now increased to 89.1% from 85.7% as of Apr 30. In fact, rent collections from office and retail tenants have improved to 95.1% and 63.3% from 91.8% and 60%, respectively, in April.
Additionally, to date, overall May rent collections totaled 84.7%, consisting of 91.1% for office and 54.7% for retail billings. Management expects the numbers to increase further in June as some tenants have delayed making payments.
Amid the COVID-19 crisis, SL Green has collected the majority of its property billings. This reflects the high credit quality of the company’s tenants.
Moreover, shares of the Zacks Rank #3 (Hold) company have plunged 49.1% over the past year compared with the industry’s decline of 4.7%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Stocks to Consider
Alexander Baldwin Holdings, Inc.’s (ALEX - Free Report) Zacks Consensus Estimate for 2020 funds from operations (FFO) per share has been unchanged at 83 cents over the past month. The company currently flaunts a Zacks Rank of 1.
One Liberty Properties, Inc.’s (OLP - Free Report) FFO per share estimate for the ongoing year has been unchanged at $1.89 over the past 30 days. The company currently flaunts a Zacks Rank of 1.
Gladstone Land Corporation’s (LAND - Free Report) FFO per share estimate for 2020 has moved 3% upward to 68 cents over the past month. Further, it currently carries a Zacks Rank of 2 (Buy).
Note: Anything related to earnings presented in this write-up represent funds from operations (FFO) — a widely used metric to gauge the performance of REITs.
5 Stocks to Soar Past the Pandemic: In addition to the companies you learned about above, we invite you to learn about 5 cutting-edge stocks that could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of the decade.
See the 5 high-tech stocks now>>