SL Green, PGIM Boost Strength With Refinancing of 11 Madison Avenue

SL Green Realty Corp. SLG, with its joint venture partner, PGIM, recently announced completion of a $1.4 billion, five-year, fixed-rate refinancing of 11 Madison Avenue.The new mortgage carries a coupon rate of 5.625%, which SL Green hedged to an effective rate of 5.592% for its portion. It serves as a replacement for the previous $1.4 billion of debt on the property, which was comprised of a $1.075 billion senior mortgage and two mezzanine loans totaling $325 million.11 Madison Avenue is a 30-story, 2.3 million-square-foot office tower located between Park Avenue South and Madison Avenue, adjacent to Madison Square Park. Its surroundings offer access to many restaurants and upscale shopping. With a prestigious tenant roster, it has been currently 93% occupied. The office tower also houses the famous 3-Michelin-Star restaurant, Eleven Madison Park.The CMBS financing was led by Wells Fargo Bank, with participation from leading global financial institutions including J.P. Morgan Chase, Bank of America, Goldman Sachs, Deutsche Bank and Bank of Montreal.ConclusionThis refinancing offers SL Green enhanced financial flexibility. Extended maturities of the assumed debt will help the company improve its maturity profile and enjoy greater liquidity for day-to-day operations.The company is well-poised for growth, given tenants’ solid demand for premier office spaces with class-apart amenities. With supply pressures easing and people returning to offices, SLG is witnessing healthy leasing activity.Over the past six months, shares of this Zacks Rank #2 (Buy) company have gained 3.4% against the industry’s decline of 0.6%. Image Source: Zacks Investment Research Other Stocks to ConsiderSome other top-ranked stocks from the broader REIT sector are Welltower WELL and Plymouth Industrial REIT PLYM, each carrying a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.The Zacks Consensus Estimate for WELL’s 2025 FFO per share has moved a cent northward to $5.07 over the past month.The Zacks Consensus Estimate for PLYM’s 2025 FFO per share has moved 2 cents upward to $1.88 over the past two months.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.Zacks Names #1 Semiconductor StockThis under-the-radar company specializes in semiconductor products that titans like NVIDIA don't build. It's uniquely positioned to take advantage of the next growth stage of this market. And it's just beginning to enter the spotlight, which is exactly where you want to be.With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $971 billion by 2028.See This Stock Now for Free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report SL Green Realty Corporation (SLG): Free Stock Analysis Report Plymouth Industrial REIT (PLYM): Free Stock Analysis Report Welltower Inc. (WELL): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks