SL Green's Q1 FFO & Revenue Beat Estimates, Rental Rates Improve

SL Green Realty Corp. SLG reported first-quarter 2025 funds from operations (FFO) per share of $1.40, which surpassed the Zacks Consensus Estimate of $1.27. The company had reported an FFO of $3.07 per share in the year-ago period, including $2.02 per share of gain on discounted debt extinguishment at Herald Square and $0.07 per share of positive non-cash fair value adjustments on mark-to-market derivatives.The results reflected improved average rental rates on the Manhattan office leases signed in the period and higher same-store cash net operating income (NOI). However, elevated interest expenses undermined the results to some extent.Net rental revenues of $144.5 million outpaced the Zacks Consensus Estimate of $140.7 million. The figure improved 12.7% year over year.SLG’s Q1 in DetailIn the first quarter, same-store cash NOI, including the company's share of same-store cash NOI from unconsolidated joint ventures, increased 2.4% year over year to $149.2 million, excluding lease termination income.For its Manhattan portfolio, SL Green signed 45 office leases encompassing 0.6 million square feet of space in the reported quarter. The average rental rate on the Manhattan office leases signed was $83.75 per rentable square foot, improving from $74.38 in the previous quarter.The signed leases had an average lease term of 9.8 years. The average tenant concessions were 9.4 months of free rent with a tenant improvement allowance of $94.35 per rentable square foot. The mark-to-market on signed Manhattan office leases decreased 3.1% from the previous fully escalated rents on the same spaces in the quarter.As of March 31, 2025, Manhattan’s same-store office occupancy, including 791,538 square feet of leases signed but not yet commenced, was 91.8%, down from 92.4% at the end of the prior quarter.SL Green's interest expenses (net of interest income) increased 46.5% from the year-ago quarter to $45.7 million.SLG’s Portfolio ActivityIn April 2025, SL Green, along with its joint venture partner, closed on the sale of 85 Fifth Avenue, generating net proceeds of $3.2 million. In the first quarter of 2025, the company closed on the sale of six Giorgio Armani Residences at 760 Madison Avenue, generating net proceeds of $93.3 million.In January 2025, SL Green closed the acquisition of 500 Park Avenue for $130 million.SLG’s LiquiditySL Green exited the first quarter with cash and cash equivalents of $180.1 million, down from $184.3 million recorded as of Dec. 31, 2024.As of the same date, the net carrying value of the company’s debt and preferred equity portfolio was $318.2 million, which increased 4.8% from the last quarter.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 QuoteUpcoming Earnings ReleasesWe now look forward to the earnings releases of other REITs like Alexandria Real Estate Equities ARE and BXP, Inc. BXP, slated to report on April 28 and April 29, respectively. (See the Zacks Earnings Calendar to stay ahead of market-making news.)The Zacks Consensus Estimate for Alexandria’s first-quarter 2025 FFO per share is pegged at $2.28, implying a 3% year-over-year decrease. ARE currently carries a Zacks Rank #3.The Zacks Consensus Estimate for BXP’s first-quarter 2025 FFO per share is pegged at $1.65, calling for a 4.6% year-over-year decrease. BXP currently carries a Zacks Rank #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.Only $1 to See All Zacks' Buys and SellsWe're not kidding.Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent.Thousands have taken advantage of this opportunity. Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services like Surprise Trader, Stocks Under $10, Technology Innovators,and more, that closed 256 positions with double- and triple-digit gains in 2024 alone.See Stocks Now >>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 BXP, Inc. (BXP): Free Stock Analysis Report SL Green Realty Corporation (SLG): Free Stock Analysis Report Alexandria Real Estate Equities, Inc. (ARE): 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