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Here's Why SL Green (SLG) is a Promising Bet for Investors
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SL Green Realty Corporation (SLG - Free Report) is a promising stock presently, backed by its strategy of non-core properties’ sale to narrow its focus on targeted markets, and reinvest proceeds in its development pipeline and manage debt obligations. The measures have enabled the company to retain premium and highest-growth assets in the portfolio.
Moreover, it has been leveraging on the active sales market for high-quality investment to shrink the debt and preferred equity (DPE) portfolio to $1,379.7 million at the second-quarter end.
SL Green has surpassed estimates in each of the trailing four quarters, with a positive earnings surprise of 7.3%, on average. In fact, for first-quarter 2020, the company reported quarterly funds from operations (FFO) per share of $2.08, surpassing the Zacks Consensus Estimate of $1.70. The figure also compared favorably with the year-ago quarter’s $1.68.
High-quality portfolio driving leasing activity: The company has a mono-market strategy that focuses on premium New York City office real estate assets and a street-retail portfolio in important Manhattan shopping corridors. Ownership of high-quality properties has enabled it to enjoy high occupancy and leasing activity. In fact, as of Jun 1, the company had a significant Manhattan leasing pipeline of 51 leases for 842,801 rentable square feet of space.
Strong liquidity and prudent capital-management practices: Amid the coronavirus outbreak-led uncertainties, SL Green undertook several liquidity-enhancement initiatives. The company achieved its target to bolster liquidity position to $1 billion, a month ahead of its schedule on the back of loan refinancing, DPE-portfolio shrinking, and the sale of real estate assets and JV stake. This provides it with ample liquidity for near-term operations.
High credit-quality tenants driving rent collections: The company aims at maintaining a diversified tenant base to hedge the risk associated with dependency on single-industry tenants. Moreover, with a number of creditworthy tenants in its roster, it enjoys stable revenues. The strength in its tenant roster is also driving rent collections amid the pandemic-induced mayhem. In fact, overall April rent collections have now increased to 89.1% from 85.7% as of Apr 30. Moreover, overall May rent collections totaled 84.7%, consisting of 91.1% for office and 54.7% for retail billings.
High ROE: The company’s return on equity (ROE) of 5.9% compares favorably with the industry’s 4%. This reflects that it reinvests shareholders’ funds more efficiently compared to the industry. In fact, it remains committed to increase shareholder value through share buybacks. From the start of the year through Jun 1, the company repurchased $44.1 million of common stock under its $3-billion share-repurchase program.
Other Stocks to Consider
Alexander Baldwin Holdings, Inc.’s (ALEX - Free Report) Zacks Consensus Estimate for 2020 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.
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.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
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Here's Why SL Green (SLG) is a Promising Bet for Investors
SL Green Realty Corporation (SLG - Free Report) is a promising stock presently, backed by its strategy of non-core properties’ sale to narrow its focus on targeted markets, and reinvest proceeds in its development pipeline and manage debt obligations. The measures have enabled the company to retain premium and highest-growth assets in the portfolio.
Moreover, it has been leveraging on the active sales market for high-quality investment to shrink the debt and preferred equity (DPE) portfolio to $1,379.7 million at the second-quarter end.
SL Green has surpassed estimates in each of the trailing four quarters, with a positive earnings surprise of 7.3%, on average. In fact, for first-quarter 2020, the company reported quarterly funds from operations (FFO) per share of $2.08, surpassing the Zacks Consensus Estimate of $1.70. The figure also compared favorably with the year-ago quarter’s $1.68.
Moreover, shares of this Zacks Rank #2 (Buy) company have risen 39.4% over the past month compared with the industry’s growth of 15.7%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Why the Stock is an Attractive Pick
High-quality portfolio driving leasing activity: The company has a mono-market strategy that focuses on premium New York City office real estate assets and a street-retail portfolio in important Manhattan shopping corridors. Ownership of high-quality properties has enabled it to enjoy high occupancy and leasing activity. In fact, as of Jun 1, the company had a significant Manhattan leasing pipeline of 51 leases for 842,801 rentable square feet of space.
Strong liquidity and prudent capital-management practices: Amid the coronavirus outbreak-led uncertainties, SL Green undertook several liquidity-enhancement initiatives. The company achieved its target to bolster liquidity position to $1 billion, a month ahead of its schedule on the back of loan refinancing, DPE-portfolio shrinking, and the sale of real estate assets and JV stake. This provides it with ample liquidity for near-term operations.
High credit-quality tenants driving rent collections: The company aims at maintaining a diversified tenant base to hedge the risk associated with dependency on single-industry tenants. Moreover, with a number of creditworthy tenants in its roster, it enjoys stable revenues. The strength in its tenant roster is also driving rent collections amid the pandemic-induced mayhem. In fact, overall April rent collections have now increased to 89.1% from 85.7% as of Apr 30. Moreover, overall May rent collections totaled 84.7%, consisting of 91.1% for office and 54.7% for retail billings.
High ROE: The company’s return on equity (ROE) of 5.9% compares favorably with the industry’s 4%. This reflects that it reinvests shareholders’ funds more efficiently compared to the industry. In fact, it remains committed to increase shareholder value through share buybacks. From the start of the year through Jun 1, the company repurchased $44.1 million of common stock under its $3-billion share-repurchase program.
Other Stocks to Consider
Alexander Baldwin Holdings, Inc.’s (ALEX - Free Report) Zacks Consensus Estimate for 2020 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.
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.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
See the pot trades we're targeting>>