SL Green Realty Corp. Reports Fourth Quarter 2024 EPS of $0.13 per Share; and FFO of $1.81 per Share
SL Green Realty Corp reported Q4 2024 net income of $0.13 per share, compared to a net loss of $2.45 per share in Q4 2023. Funds from operations (FFO) reached $1.81 per share in Q4 2024, including $0.36 per share gain from debt extinguishment and $0.10 per share from positive mark-to-market adjustments.
The company signed 48 Manhattan office leases covering 1.79M square feet in Q4, with an 9.0% higher mark-to-market on rents. Manhattan same-store office occupancy increased to 92.5%. Notable transactions include selling an 11.0% interest in One Vanderbilt Avenue at $4.7B valuation, generating $189.5M in proceeds, and acquiring 500 Park Avenue for $130.0M.
Same-store cash NOI decreased 2.7% in Q4 and 1.2% for the full year. The company completed $5.3B in strategic debt refinancings and expanded its special servicing business to $5.0B in active assignments.
SL Green Realty Corp ha riportato un reddito netto di $0,13 per azione nel quarto trimestre del 2024, rispetto a una perdita netta di $2,45 per azione nel quarto trimestre del 2023. I fondi dalle operazioni (FFO) hanno raggiunto $1,81 per azione nel quarto trimestre del 2024, comprendendo un guadagno di $0,36 per azione dalla estinzione di debito e $0,10 per azione da aggiustamenti positivi di mark-to-market.
L'azienda ha firmato 48 contratti di locazione per uffici a Manhattan che coprono 1,79 milioni di piedi quadrati nel quarto trimestre, con un aumento del 9,0% nel mark-to-market degli affitti. L'occupazione degli uffici a Manhattan nello stesso negozio è aumentata al 92,5%. Tra le transazioni notevoli c'è la vendita di un interesse dell'11,0% in One Vanderbilt Avenue a una valutazione di $4,7 miliardi, generando $189,5 milioni di proventi, e l'acquisizione di 500 Park Avenue per $130,0 milioni.
Il NOI di cassa nello stesso negozio è diminuito del 2,7% nel quarto trimestre e dell'1,2% per l'intero anno. L'azienda ha completato ristrutturazioni di debito strategico per $5,3 miliardi ed ha espanso il proprio business di servizi speciali a $5,0 miliardi in incarichi attivi.
SL Green Realty Corp reportó un ingreso neto de $0,13 por acción en el cuarto trimestre de 2024, en comparación con una pérdida neta de $2,45 por acción en el cuarto trimestre de 2023. Los fondos de operaciones (FFO) alcanzaron $1,81 por acción en el cuarto trimestre de 2024, incluyendo una ganancia de $0,36 por acción por la extinción de deudas y $0,10 por acción por ajustes positivos de mark-to-market.
La compañía firmó 48 contratos de arrendamiento de oficinas en Manhattan que cubren 1,79 millones de pies cuadrados en el cuarto trimestre, con un aumento del 9,0% en el mark-to-market de los alquileres. La ocupación de oficinas en Manhattan en tiendas comparables aumentó al 92,5%. Las transacciones destacadas incluyen la venta de un 11,0% de interés en One Vanderbilt Avenue con una valoración de $4,7 mil millones, generando $189,5 millones en ingresos, y la adquisición de 500 Park Avenue por $130,0 millones.
El NOI de efectivo en tiendas comparables disminuyó un 2,7% en el cuarto trimestre y un 1,2% durante el año completo. La compañía completó $5,3 mil millones en refinanciamientos de deuda estratégicos y amplió su negocio de servicios especiales a $5,0 mil millones en asignaciones activas.
SL Green Realty Corp는 2024년 4분기 주당 순이익이 $0.13으로, 2023년 4분기 주당 손실 $2.45와 비교되었다. 운영에서 발생한 기금(FFO)은 2024년 4분기에 주당 $1.81에 달하였으며, 이는 부채 상환에서 발생한 주당 $0.36의 이익과 긍정적인 시장 가치 조정에서 발생한 주당 $0.10을 포함한다.
회사는 4분기에 1.79백만 평방피트를 커버하는 맨해튼 사무실 임대 계약 48건을 체결하였으며, 임대료의 시장 가치가 9.0% 상승하였다. 맨해튼 동일 매장 사무실 점유율은 92.5%로 증가하였다. 주목할 만한 거래로는 One Vanderbilt Avenue의 11.0% 지분을 $47억의 가치로 판매하여 $1억8950만의 수익을 창출하였으며, 500 Park Avenue를 $1억3000만에 인수한 것이다.
동일 매장 현금 NOI는 4분기에 2.7% 감소하였고, 연간으로는 1.2% 감소하였다. 회사는 $53억의 전략적 부채 재조정을 완료하였고, 자사의 특별 서비스 사업을 $50억 규모의 활성 과제로 확장하였다.
SL Green Realty Corp a annoncé un revenu net de 0,13 $ par action pour le quatrième trimestre 2024, contre une perte nette de 2,45 $ par action pour le quatrième trimestre 2023. Les fonds issus des opérations (FFO) ont atteint 1,81 $ par action au quatrième trimestre 2024, incluant un gain de 0,36 $ par action provenant de l'extinction de dettes et 0,10 $ par action provenant d'ajustements positifs de valeur de marché.
La société a signé 48 baux de bureaux à Manhattan couvrant 1,79 million de pieds carrés au quatrième trimestre, avec une augmentation de 9,0 % de la valeur locative. Le taux d'occupation des bureaux à Manhattan dans les mêmes magasins a augmenté à 92,5 %. Parmi les transactions notables, on trouve la vente d'un intérêt de 11,0 % dans One Vanderbilt Avenue pour une évaluation de 4,7 milliards de dollars, générant 189,5 millions de dollars de produits, et l'acquisition de 500 Park Avenue pour 130,0 millions de dollars.
Le NOI en espèces des mêmes magasins a diminué de 2,7 % au quatrième trimestre et de 1,2 % sur l'ensemble de l'année. La société a complété des refinancements de dettes stratégiques pour 5,3 milliards de dollars et a élargi son activité de services spéciaux à 5,0 milliards de dollars en missions actives.
SL Green Realty Corp berichtete für das 4. Quartal 2024 einen Nettoertrag von $0,13 je Aktie, verglichen mit einem Nettoverlust von $2,45 je Aktie im 4. Quartal 2023. Die Mittel aus dem Betrieb (FFO) erreichten im 4. Quartal 2024 $1,81 je Aktie, einschließlich eines Gewinns von $0,36 je Aktie aus der Schuldentilgung und $0,10 je Aktie aus positiven Mark-to-Market-Anpassungen.
Das Unternehmen unterschrieb im 4. Quartal 48 Büromietverträge in Manhattan, die eine Fläche von 1,79 Millionen Quadratfuß abdecken, mit einem um 9,0% höheren Mark-to-Market bei den Mieten. Die Auslastung der Büros in Manhattan in vergleichbaren Geschäften stieg auf 92,5%. Zu den bemerkenswerten Transaktionen gehört der Verkauf eines 11,0%-Anteils an One Vanderbilt Avenue mit einer Bewertung von $4,7 Milliarden, was $189,5 Millionen an Erlösen generierte, und der Erwerb von 500 Park Avenue für $130,0 Millionen.
Der NOI in vergleichbaren Geschäften sank im 4. Quartal um 2,7% und um 1,2% im Gesamtjahr. Das Unternehmen hat strategische Schuldenumfinanzierungen in Höhe von $5,3 Milliarden abgeschlossen und sein spezialisiertes Dienstleistungsgeschäft auf $5,0 Milliarden aktive Aufträge ausgeweitet.
- Net income improved from -$2.45 to $0.13 per share YoY in Q4 2024
- FFO increased significantly from $0.72 to $1.81 per share YoY in Q4 2024
- Manhattan same-store office occupancy rose to 92.5%
- Achieved 9.0% higher rents on new lease signings in Q4
- Generated $189.5M from One Vanderbilt Avenue stake sale
- Same-store cash NOI decreased 2.7% in Q4 2024
- Same-store cash NOI declined 1.2% for full year 2024
Insights
SL Green's Q4 2024 results reveal a compelling turnaround story in Manhattan's office market. The $0.13 EPS and $1.81 FFO per share mark substantial improvements over 2023, though these figures include $0.46 per share in combined gains from debt extinguishment and derivative adjustments. Stripping these out, the core FFO of $1.35 still demonstrates robust operational performance.
The leasing momentum is particularly noteworthy, with 1.8 million square feet of new Manhattan office leases in Q4 alone. High-profile deals with Bloomberg (924,876 sq ft) and Alvarez & Marsal (220,221 sq ft) underscore strong demand from financial and professional services firms. The 9% higher mark-to-market rents on new leases and improved occupancy of 92.5% indicate strengthening market fundamentals, despite a slight 2.7% decline in same-store NOI.
The company's strategic initiatives are transformative. The $4.7 billion valuation achieved for One Vanderbilt through an 11% stake sale validates the trophy asset's premium positioning. The completion of $5.3 billion in debt refinancing strengthens the balance sheet, while maintaining reasonable interest rates in a challenging environment. The expansion of special servicing business to $5.0 billion in active assignments, with an additional $8.2 billion designated, represents a growing fee-based revenue stream that diversifies income sources.
Most significantly, the increase in the annual dividend to $3.09 per share signals management's confidence in sustainable cash flow generation. The successful residential unit sales at Giorgio Armani Residences and strategic acquisitions like 500 Park Avenue demonstrate effective capital recycling while maintaining Manhattan market leadership.
Financial and Operating Highlights
- Net income attributable to common stockholders of
$0.13 per share for the fourth quarter of 2024 as compared to net loss of$2.45 per share for the same period in 2023. - Funds from operations ("FFO") of
$1.81 per share for the fourth quarter of 2024, inclusive of$26.0 million , or$0.36 per share, of gain on discounted debt extinguishment at 690 Madison Avenue and$7.7 million , or$0.10 per share, of positive non-cash fair value adjustments on mark-to-market derivatives. The Company reported FFO of$0.72 per share for the same period in 2023. - FFO of
$8.11 per share for the full year, inclusive of$216.1 million , or$3.08 per share, of gains on discounted debt extinguishments and$5.3 million , or$0.07 per share, of positive non-cash fair value adjustments on mark-to-market derivatives, as compared to$4.94 for the same period in 2023. - Signed 48 Manhattan office leases covering 1,789,996 square feet in the fourth quarter of 2024 and 188 Manhattan office leases covering 3,607,924 square feet for the full year. The mark-to-market on signed Manhattan office leases was
9.0% higher for the fourth quarter and8.5% higher for the full year than the previous fully escalated rents on the same spaces. - Same-store cash net operating income ("NOI"), including the Company's share of same-store cash NOI from unconsolidated joint ventures, decreased
2.7% for the fourth quarter and1.2% for the full year, excluding lease termination income, as compared to the same periods in 2023. - Manhattan same-store office occupancy increased to
92.5% as of December 31, 2024, inclusive of leases signed but not yet commenced.
Investing Highlights
- Closed on the sale of an
11.0% interest in One Vanderbilt Avenue for a gross asset valuation of$4.7 billion . The transaction generated net proceeds to the Company of$189.5 million . - Closed on the sale of three of the Giorgio Armani Residences at 760 Madison Avenue. The transactions generated net proceeds to the Company of
$61.5 million . Sales of the remaining units, which are all under contract, are expected to close in the first quarter of 2025. - Closed on the previously announced acquisition of 500 Park Avenue for
$130.0 million . The Company financed the acquisition with a new$80.0 million mortgage. The mortgage has a term of up to 5 years, as fully extended, and bears interest at a floating rate of2.40% over Term SOFR, which the Company has swapped to a fixed rate of6.57% through February 2028. - Closed on the previously announced acquisition of our partner's
45.0% interest in 10 East 53rd Street for cash consideration of$7.2 million , net of all outstanding debt obligations. - The Company continues to close commitments for the SLG Opportunistic Debt Fund, following the
$250.0 million closing with a Canadian institutional investor to anchor the Fund.
Financing Highlights
- The Company repaid the previous
$60.9 million mortgage on 690 Madison Avenue for a net payment of$32.1 million . - Together with our joint venture partner, closed on a modification, extension and upsize of the
$360.0 million mortgage on 100 Park Avenue. The modification extended the maturity date to December 2027, as fully extended, while maintaining the interest rate at2.25% over Term SOFR. The lenders also provided a new$70.0 million future funding facility for leasing costs at the property. - Together with our joint venture partners, closed on a modification and extension of the
$1.3 billion mortgage facility on One Madison Avenue. The modification extended the final maturity date to November 2027, while maintaining the interest rate at3.10% over Term SOFR. - Together with our joint venture partner, closed on a modification and extension of the
$742.8 million mortgage on 1515 Broadway. The modification extended the maturity date to March 2028, as fully extended, while maintaining the interest rate at3.93% . - Closed on a modification and extension of a
$100.0 million funded term loan component of the Company's unsecured corporate credit facility. The modification extended the maturity date to November 2026, as fully extended, at a rate of1.80% over Term SOFR. - Inclusive of the above, the Company completed
$5.3 billion of strategic debt refinancings, modifications and extensions in 2024.
Special Servicing and Asset Management Highlights
- The Company further expanded its special servicing business with active assignments now totaling
$5.0 billion and an additional$8.2 billion for which the Company has been designated as special servicer on assets that are not currently in special servicing.
NEW YORK, Jan. 22, 2025 (GLOBE NEWSWIRE) -- SL Green Realty Corp. (the "Company") (NYSE: SLG) today reported a net income attributable to common stockholders for the quarter ended December 31, 2024 of
The Company reported net income attributable to common stockholders for the year ended December 31, 2024 of
The Company reported FFO for the quarter ended December 31, 2024 of
The Company reported FFO for the year ended December 31, 2024 of
All per share amounts are presented on a diluted basis.
Operating and Leasing Activity
Same-store cash NOI, including the Company's share of same-store cash NOI from unconsolidated joint ventures, decreased by
Same-store cash NOI, including the Company's share of same-store cash NOI from unconsolidated joint ventures, decreased by
During the fourth quarter of 2024, the Company signed 48 office leases in its Manhattan office portfolio totaling 1,789,996 square feet. The average rent on the Manhattan office leases signed in the fourth quarter of 2024 was
During the year ended December 31, 2024, the Company signed 188 office leases in its Manhattan office portfolio totaling 3,607,924 square feet. The average rent on the Manhattan office leases signed in 2024 was
Occupancy in the Company's Manhattan same-store office portfolio increased to
Significant leasing activity in the fourth quarter and to date in January includes:
- Early renewal and expansion with Bloomberg, L.P. for 924,876 square feet at 919 Third Avenue;
- New lease with Alvarez & Marsal Holdings, LLC for 220,221 square feet at 100 Park Avenue;
- Early renewal and expansion with The Travelers Indemnity Company for 122,788 square feet at 485 Lexington Avenue;
- Expansion lease with IBM for 92,663 square feet at One Madison Avenue;
- Expansion lease with Verition Group NY, Inc. for 72,515 square feet at 245 Park Avenue;
- Early renewal and expansion with the Brazilian Government for 66,331 square feet at 220 East 42nd Street;
- New lease with Hartree Partners, LP for 54,250 square feet at 1185 Avenue of the Americas;
- New lease with New York State Office of General Services for 51,284 square feet at 919 Third Avenue; and
- Expansion lease with Ares Management LLC for 38,074 square feet at 245 Park Avenue.
Investment Activity
In November, the Company closed on the sale of an
In December, the Company closed on three of the Giorgio Armani Residences at 760 Madison Avenue. The transactions generated net proceeds to the Company of
In January, the Company closed on the previously announced acquisition of 500 Park Avenue for
In December, the Company closed on the previously announced acquisition of our partner's
The Company continues to close commitments for the SLG Opportunistic Debt Fund, following the
Debt and Preferred Equity Investment Activity
The carrying value of the Company’s debt and preferred equity portfolio was
In December, the Company closed on a one-year extension of an existing
During the fourth quarter of 2024, the Company invested
Financing Activity
In December, the Company repaid the previous
In December, together with our joint venture partner, closed on a modification, extension and upsize of the
In November, together with our joint venture partners, closed on a modification and extension of the
In November, together with our joint venture partner, closed on a modification and extension of the
In November, the Company closed on a modification and extension of a
Special Servicing and Asset Management Activity
The Company further expanded its special servicing business with active assignments now totaling
Dividends
In the fourth quarter of 2024, the Company declared:
- Two monthly ordinary dividends on its outstanding common stock of
$0.25 per share, which were paid in cash on November 15 and December 16, 2024; - One monthly ordinary dividend on its outstanding common stock of
$0.25 75 per share, which was paid on January 15, 2025, and reflects an increase in the annualized ordinary dividend to$3.09 per share of common stock; and - A quarterly dividend on its outstanding
6.50% Series I Cumulative Redeemable Preferred Stock of$0.40 625 per share for the period October 15, 2024 through and including January 14, 2025, which was paid in cash on January 15, 2025, and is the equivalent of an annualized dividend of$1.62 5 per share.
Conference Call and Audio Webcast
The Company's executive management team, led by Marc Holliday, Chairman and Chief Executive Officer, will host a conference call and audio webcast on Thursday, January 23, 2025, at 2:00 p.m. ET to discuss the financial results.
Supplemental data will be available prior to the quarterly conference call in the Investors section of the SL Green Realty Corp. website at www.slgreen.com under “Financial Reports.”
The live conference call will be webcast in listen-only mode and a replay will be available in the Investors section of the SL Green Realty Corp. website at www.slgreen.com under “Presentations & Webcasts.”
Research analysts who wish to participate in the conference call must first register at https://register.vevent.com/register/BI98713c5cf3b747a4b8c7b7969ca7daf4.
Company Profile
SL Green Realty Corp., Manhattan's largest office landlord, is a fully integrated real estate investment trust, or REIT, that is focused primarily on acquiring, managing and maximizing value of Manhattan commercial properties. As of December 31, 2024, SL Green held interests in 54 buildings totaling 30.6 million square feet. This included ownership interests in 27.0 million square feet of Manhattan buildings and 2.8 million square feet securing debt and preferred equity investments.
To obtain the latest news releases and other Company information, please visit our website at www.slgreen.com or contact Investor Relations at investor.relations@slgreen.com.
Disclaimers
Non-GAAP Financial Measures
During the quarterly conference call, the Company may discuss non-GAAP financial measures as defined by SEC Regulation G. In addition, the Company has used non-GAAP financial measures in this press release. A reconciliation of each non-GAAP financial measure and the comparable GAAP financial measure can be found in this release and in the Company’s Supplemental Package.
Forward-looking Statements
This press release includes certain statements that may be deemed to be "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 and are intended to be covered by the safe harbor provisions thereof. All statements, other than statements of historical facts, included in this press release that address activities, events or developments that we expect, believe or anticipate will or may occur in the future, including such matters as future capital expenditures, dividends and acquisitions (including the amount and nature thereof), development trends of the real estate industry and the New York metropolitan area markets, occupancy, business strategies, expansion and growth of our operations and other similar matters, are forward-looking statements. These forward-looking statements are based on certain assumptions and analyses made by us in light of our experience and our perception of historical trends, current conditions, expected future developments and other factors we believe are appropriate. Forward-looking statements are not guarantees of future performance and actual results or developments may differ materially, and we caution you not to place undue reliance on such statements. Forward-looking statements are generally identifiable by the use of the words "may," "will," "should," "expect," "anticipate," "estimate," "believe," "intend," "project," "continue," or the negative of these words, or other similar words or terms.
Forward-looking statements contained in this press release are subject to a number of risks and uncertainties, many of which are beyond our control, that may cause our actual results, performance or achievements to be materially different from future results, performance or achievements expressed or implied by forward-looking statements made by us. Factors and risks to our business that could cause actual results to differ from those contained in the forward-looking statements include risks and uncertainties described in our filings with the Securities and Exchange Commission. Except to the extent required by law, we undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of future events, new information or otherwise.
PRESS CONTACT
slgreen@berlinrosen.com
| SL GREEN REALTY CORP. CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited and in thousands, except per share data) | |||||||||||||||
| Three Months Ended | Twelve Months Ended | ||||||||||||||
| December 31, | December 31, | ||||||||||||||
| Revenues: | 2024 | 2023 | 2024 | 2023 | |||||||||||
| Rental revenue, net | $ | 139,613 | $ | 131,927 | $ | 542,995 | $ | 603,694 | |||||||
| Escalation and reimbursement revenues | 17,317 | 19,430 | 63,004 | 79,641 | |||||||||||
| SUMMIT Operator revenue | 38,571 | 35,240 | 133,214 | 118,260 | |||||||||||
| Investment income | 5,415 | 6,856 | 24,353 | 34,705 | |||||||||||
| Interest income from real estate loans held by consolidated securitization vehicles | 14,209 | — | 18,980 | — | |||||||||||
| Other income | 30,754 | 18,271 | 103,726 | 77,410 | |||||||||||
| Total revenues | 245,879 | 211,724 | 886,272 | 913,710 | |||||||||||
| Expenses: | |||||||||||||||
| Operating expenses, including related party expenses of | 50,150 | 48,090 | 189,598 | 196,696 | |||||||||||
| Real estate taxes | 33,692 | 31,294 | 128,187 | 143,757 | |||||||||||
| Operating lease rent | 5,287 | 7,083 | 24,423 | 27,292 | |||||||||||
| SUMMIT Operator expenses | 28,792 | 24,887 | 111,739 | 101,211 | |||||||||||
| Interest expense, net of interest income | 38,153 | 27,400 | 147,220 | 137,114 | |||||||||||
| Amortization of deferred financing costs | 1,734 | 1,510 | 6,619 | 7,837 | |||||||||||
| SUMMIT Operator tax expense | 1,949 | 2,320 | 730 | 9,201 | |||||||||||
| Interest expense on senior obligations of consolidated securitization vehicles | 11,304 | — | 14,634 | — | |||||||||||
| Depreciation and amortization | 53,436 | 49,050 | 207,443 | 247,810 | |||||||||||
| Loan loss and other investment reserves, net of recoveries | — | — | — | 6,890 | |||||||||||
| Transaction related costs | 138 | 16 | 401 | 1,099 | |||||||||||
| Marketing, general and administrative | 22,827 | 42,257 | 85,187 | 111,389 | |||||||||||
| Total expenses | 247,462 | 233,907 | 916,181 | 990,296 | |||||||||||
| Equity in net loss from unconsolidated joint ventures | (279,752 | ) | (32,039 | ) | (179,695 | ) | (76,509 | ) | |||||||
| Equity in net gain (loss) on sale of interest in unconsolidated joint venture/real estate | 189,138 | (13,289 | ) | 208,144 | (13,368 | ) | |||||||||
| Purchase price and other fair value adjustments | 125,287 | (10,273 | ) | 88,966 | (17,260 | ) | |||||||||
| (Loss) Gain on sale of real estate, net | (1,705 | ) | (4,557 | ) | 3,025 | (32,370 | ) | ||||||||
| Depreciable real estate reserves | (38,232 | ) | (76,847 | ) | (104,071 | ) | (382,374 | ) | |||||||
| Gain (Loss) on early extinguishment of debt | 25,985 | (870 | ) | 43,762 | (870 | ) | |||||||||
| Net income (loss) | 19,138 | (160,058 | ) | 30,222 | (599,337 | ) | |||||||||
| Net income (loss) attributable to noncontrolling interests: | |||||||||||||||
| Noncontrolling interests in the Operating Partnership | (663 | ) | 9,972 | (497 | ) | 37,465 | |||||||||
| Noncontrolling interests in other partnerships | (3,222 | ) | 109 | 928 | 4,568 | ||||||||||
| Preferred units distributions | (2,158 | ) | (1,903 | ) | (8,643 | ) | (7,255 | ) | |||||||
| Net income (loss) attributable to SL Green | 13,095 | (151,880 | ) | 22,010 | (564,559 | ) | |||||||||
| Perpetual preferred stock dividends | (3,737 | ) | (3,737 | ) | (14,950 | ) | (14,950 | ) | |||||||
| Net income (loss) attributable to SL Green common stockholders | $ | 9,358 | $ | (155,617 | ) | $ | 7,060 | $ | (579,509 | ) | |||||
| Earnings Per Share (EPS) | |||||||||||||||
| Basic earnings (loss) per share | $ | 0.13 | $ | (2.45 | ) | $ | 0.08 | $ | (9.12 | ) | |||||
| Diluted earnings (loss) per share | $ | 0.13 | $ | (2.45 | ) | $ | 0.08 | $ | (9.12 | ) | |||||
| Funds From Operations (FFO) | |||||||||||||||
| Basic FFO per share | $ | 1.87 | $ | 0.72 | $ | 8.29 | $ | 4.98 | |||||||
| Diluted FFO per share | $ | 1.81 | $ | 0.72 | $ | 8.11 | $ | 4.94 | |||||||
| Basic ownership interest | |||||||||||||||
| Weighted average REIT common shares for net income per share | 67,167 | 63,885 | 65,062 | 63,809 | |||||||||||
| Weighted average partnership units held by noncontrolling interests | 3,487 | 4,129 | 3,674 | 4,163 | |||||||||||
| Basic weighted average shares and units outstanding | 70,654 | 68,014 | 68,736 | 67,972 | |||||||||||
| Diluted ownership interest | |||||||||||||||
| Weighted average REIT common share and common share equivalents | 69,428 | 65,171 | 66,594 | 64,869 | |||||||||||
| Weighted average partnership units held by noncontrolling interests | 3,487 | 4,129 | 3,674 | 4,163 | |||||||||||
| Diluted weighted average shares and units outstanding | 72,915 | 69,300 | 70,268 | 69,032 | |||||||||||
| SL GREEN REALTY CORP. CONSOLIDATED BALANCE SHEETS (unaudited and in thousands, except per share data) | |||||||
| December 31, | December 31, | ||||||
| 2024 | 2023 | ||||||
| Assets | |||||||
| Commercial real estate properties, at cost: | |||||||
| Land and land interests | $ | 1,357,041 | $ | 1,092,671 | |||
| Building and improvements | 3,862,224 | 3,655,624 | |||||
| Building leasehold and improvements | 1,388,476 | 1,354,569 | |||||
| 6,607,741 | 6,102,864 | ||||||
| Less: accumulated depreciation | (2,126,081 | ) | (1,968,004 | ) | |||
| 4,481,660 | 4,134,860 | ||||||
| Cash and cash equivalents | 184,294 | 221,823 | |||||
| Restricted cash | 147,344 | 113,696 | |||||
| Investment in marketable securities | 22,812 | 9,591 | |||||
| Tenant and other receivables | 44,055 | 33,270 | |||||
| Related party receivables | 26,865 | 12,168 | |||||
| Deferred rents receivable | 266,428 | 264,653 | |||||
| Debt and preferred equity investments, net of discounts and deferred origination fees of | 303,726 | 346,745 | |||||
| Investments in unconsolidated joint ventures | 2,690,138 | 2,983,313 | |||||
| Deferred costs, net | 117,132 | 111,463 | |||||
| Right-of-use assets - operating leases | 865,639 | 885,929 | |||||
| Real estate loans held by consolidated securitization vehicles (includes | 709,095 | — | |||||
| Other assets | 598,752 | 413,670 | |||||
| Total assets | $ | 10,457,940 | $ | 9,531,181 | |||
| Liabilities | |||||||
| Mortgages and other loans payable | $ | 1,951,024 | $ | 1,497,386 | |||
| Revolving credit facility | 320,000 | 560,000 | |||||
| Unsecured term loan | 1,150,000 | 1,250,000 | |||||
| Unsecured notes | 100,000 | 100,000 | |||||
| Deferred financing costs, net | (14,242 | ) | (16,639 | ) | |||
| Total debt, net of deferred financing costs | 3,506,782 | 3,390,747 | |||||
| Accrued interest payable | 2,727 | 17,930 | |||||
| Accounts payable and accrued expenses | 122,674 | 153,164 | |||||
| Deferred revenue | 164,887 | 134,053 | |||||
| Lease liability - financing leases | 106,853 | 105,531 | |||||
| Lease liability - operating leases | 810,989 | 827,692 | |||||
| Dividend and distributions payable | 21,816 | 20,280 | |||||
| Security deposits | 60,331 | 49,906 | |||||
| Junior subordinate deferrable interest debentures held by trusts that issued trust preferred securities | 100,000 | 100,000 | |||||
| Senior obligations of consolidated securitization vehicles (includes | 590,131 | — | |||||
| Other liabilities (includes | 415,794 | 471,401 | |||||
| Total liabilities | 5,902,984 | 5,270,704 | |||||
| Commitments and contingencies | |||||||
| Noncontrolling interests in Operating Partnership | 288,941 | 238,051 | |||||
| Preferred units and redeemable equity | 196,064 | 166,501 | |||||
| Equity | |||||||
| SL Green stockholders' equity: | |||||||
| Series I Preferred Stock, | 221,932 | 221,932 | |||||
| Common stock, | 711 | 660 | |||||
| Additional paid-in capital | 4,159,562 | 3,826,452 | |||||
| Treasury stock at cost | — | (128,655 | ) | ||||
| Accumulated other comprehensive income | 18,196 | 17,477 | |||||
| Retained deficit | (449,101 | ) | (151,551 | ) | |||
| Total SL Green Realty Corp. stockholders’ equity | 3,951,300 | 3,786,315 | |||||
| Noncontrolling interests in other partnerships | 118,651 | 69,610 | |||||
| Total equity | 4,069,951 | 3,855,925 | |||||
| Total liabilities and equity | $ | 10,457,940 | $ | 9,531,181 | |||
| SL GREEN REALTY CORP. RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (unaudited and in thousands, except per share data) | |||||||||||||||
| Three Months Ended | Twelve Months Ended | ||||||||||||||
| December 31, | December 31, | ||||||||||||||
| Funds From Operations (FFO) Reconciliation: | 2024 | 2023 | 2024 | 2023 | |||||||||||
| Net income (loss) attributable to SL Green common stockholders | $ | 9,358 | $ | (155,617 | ) | $ | 7,060 | $ | (579,509 | ) | |||||
| Add: | |||||||||||||||
| Depreciation and amortization | 53,436 | 49,050 | 207,443 | 247,810 | |||||||||||
| Joint venture depreciation and noncontrolling interest adjustments | 69,636 | 73,062 | 287,671 | 284,284 | |||||||||||
| Net income (loss) attributable to noncontrolling interests | 3,885 | (10,081 | ) | (431 | ) | (42,033 | ) | ||||||||
| Less: | |||||||||||||||
| Equity in net gain (loss) on sale of interest in unconsolidated joint venture/real estate | 189,138 | (13,289 | ) | 208,144 | (13,368 | ) | |||||||||
| Purchase price and other fair value adjustments | 117,195 | — | 83,430 | (6,813 | ) | ||||||||||
| (Loss) Gain on sale of real estate, net | (1,705 | ) | (4,557 | ) | 3,025 | (32,370 | ) | ||||||||
| Depreciable real estate reserves | (38,232 | ) | (76,847 | ) | (104,071 | ) | (382,374 | ) | |||||||
| Depreciable real estate reserves in unconsolidated joint venture | (263,190 | ) | — | (263,190 | ) | — | |||||||||
| Depreciation on non-rental real estate assets | 1,226 | 1,414 | 4,583 | 4,136 | |||||||||||
| FFO attributable to SL Green common stockholders and unit holders | $ | 131,883 | $ | 49,693 | $ | 569,822 | $ | 341,341 | |||||||
| SL GREEN REALTY CORP. RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (unaudited and in thousands, except per share data) | |||||||||||||||
| Three Months Ended | Twelve Months Ended | ||||||||||||||
| December 31, | December 31, | ||||||||||||||
| Operating income and Same-store NOI Reconciliation: | 2024 | 2023 | 2024 | 2023 | |||||||||||
| Net income (loss) | $ | 19,138 | $ | (160,058 | ) | $ | 30,222 | $ | (599,337 | ) | |||||
| Depreciable real estate reserves | 38,232 | 76,847 | 104,071 | 382,374 | |||||||||||
| Loss (Gain) on sale of real estate, net | 1,705 | 4,557 | (3,025 | ) | 32,370 | ||||||||||
| Purchase price and other fair value adjustments | (125,287 | ) | 10,273 | (88,966 | ) | 17,260 | |||||||||
| Equity in net (gain) loss on sale of interest in unconsolidated joint venture/real estate | (189,138 | ) | 13,289 | (208,144 | ) | 13,368 | |||||||||
| Depreciation and amortization | 53,436 | 49,050 | 207,443 | 247,810 | |||||||||||
| SUMMIT Operator tax expense | 1,949 | 2,320 | 730 | 9,201 | |||||||||||
| Amortization of deferred financing costs | 1,734 | 1,510 | 6,619 | 7,837 | |||||||||||
| Interest expense, net of interest income | 38,153 | 27,400 | 147,220 | 137,114 | |||||||||||
| Interest expense on senior obligations of consolidated securitization vehicles | 11,304 | — | 14,634 | — | |||||||||||
| Operating (loss) income | (148,774 | ) | 25,188 | 210,804 | 247,997 | ||||||||||
| Equity in net loss from unconsolidated joint ventures | 279,752 | 32,039 | 179,695 | 76,509 | |||||||||||
| Marketing, general and administrative expense | 22,827 | 42,257 | 85,187 | 111,389 | |||||||||||
| Transaction related costs | 138 | 16 | 401 | 1,099 | |||||||||||
| Loan loss and other investment reserves, net of recoveries | — | — | — | 6,890 | |||||||||||
| SUMMIT Operator expenses | 28,792 | 24,887 | 111,739 | 101,211 | |||||||||||
| (Gain) Loss on early extinguishment of debt | (25,985 | ) | 870 | (43,762 | ) | 870 | |||||||||
| Investment income | (5,415 | ) | (6,856 | ) | (24,353 | ) | (34,705 | ) | |||||||
| Interest income from real estate loans held by consolidated securitization vehicles | (14,209 | ) | — | (18,980 | ) | — | |||||||||
| SUMMIT Operator revenue | (38,571 | ) | (35,240 | ) | (133,214 | ) | (118,260 | ) | |||||||
| Non-building revenue | (20,704 | ) | (10,935 | ) | (68,881 | ) | (44,568 | ) | |||||||
| Net operating income (NOI) | 77,851 | 72,226 | 298,636 | 348,432 | |||||||||||
| Equity in net loss from unconsolidated joint ventures | (279,752 | ) | (32,039 | ) | (179,695 | ) | (76,509 | ) | |||||||
| SLG share of unconsolidated JV depreciable real estate reserves | 263,190 | — | 263,190 | — | |||||||||||
| SLG share of unconsolidated JV depreciation and amortization | 67,046 | 69,588 | 275,098 | 266,340 | |||||||||||
| SLG share of unconsolidated JV amortization of deferred financing costs | 3,459 | 2,876 | 11,334 | 12,005 | |||||||||||
| SLG share of unconsolidated JV interest expense, net of interest income | 67,099 | 73,012 | 276,852 | 272,217 | |||||||||||
| SLG share of unconsolidated JV gain on early extinguishment of debt | — | — | (172,369 | ) | — | ||||||||||
| SLG share of unconsolidated JV investment income | (5,048 | ) | (320 | ) | (11,513 | ) | (1,271 | ) | |||||||
| SLG share of unconsolidated JV non-building revenue | 147 | 106 | (3,051 | ) | (14,336 | ) | |||||||||
| NOI including SLG share of unconsolidated JVs | 193,992 | 185,449 | 758,482 | 806,878 | |||||||||||
| NOI from other properties/affiliates | (38,211 | ) | (26,870 | ) | (140,923 | ) | (163,399 | ) | |||||||
| Same-Store NOI | 155,781 | 158,579 | 617,559 | 643,479 | |||||||||||
| Straight-line and free rent | 810 | (1,185 | ) | 323 | (11,989 | ) | |||||||||
| Amortization of acquired above and below-market leases, net | 830 | 88 | 2,578 | 560 | |||||||||||
| Operating lease straight-line adjustment | 204 | 204 | 815 | 815 | |||||||||||
| SLG share of unconsolidated JV straight-line and free rent | (5,024 | ) | (2,265 | ) | (9,687 | ) | (17,481 | ) | |||||||
| SLG share of unconsolidated JV amortization of acquired above and below-market leases, net | (4,409 | ) | (4,407 | ) | (17,635 | ) | (17,161 | ) | |||||||
| SLG share of unconsolidated JV operating lease straight-line adjustment | — | — | — | — | |||||||||||
| Same-store cash NOI | $ | 148,192 | $ | 151,014 | $ | 593,953 | $ | 598,223 | |||||||
| Lease termination income | (2,737 | ) | (1,102 | ) | (6,338 | ) | (4,054 | ) | |||||||
| SLG share of unconsolidated JV lease termination income | — | (369 | ) | (3,055 | ) | (2,251 | ) | ||||||||
| Same-store cash NOI excluding lease termination income | $ | 145,455 | $ | 149,543 | $ | 584,560 | $ | 591,918 | |||||||
SL GREEN REALTY CORP.
NON-GAAP FINANCIAL MEASURES - DISCLOSURES
Funds from Operations (FFO)
FFO is a widely recognized non-GAAP financial measure of REIT performance. The Company computes FFO in accordance with standards established by the National Association of Real Estate Investment Trusts, or NAREIT, which may not be comparable to FFO reported by other REITs that do not compute FFO in accordance with the NAREIT definition, or that interpret the NAREIT definition differently than the Company does. The revised White Paper on FFO approved by the Board of Governors of NAREIT in April 2002, and subsequently amended in December 2018, defines FFO as net income (loss) (computed in accordance with GAAP), excluding gains (or losses) from sales of properties, and real estate related impairment charges, plus real estate related depreciation and amortization and after adjustments for unconsolidated partnerships and joint ventures.
The Company presents FFO because it considers it an important supplemental measure of the Company’s operating performance and believes that it is frequently used by securities analysts, investors and other interested parties in the evaluation of REITs, particularly those that own and operate commercial office properties. The Company also uses FFO as one of several criteria to determine performance-based compensation for members of its senior management. FFO is intended to exclude GAAP historical cost depreciation and amortization of real estate and related assets, which assumes that the value of real estate assets diminishes ratably over time. Historically, however, real estate values have risen or fallen with market conditions. Because FFO excludes depreciation and amortization unique to real estate, gains and losses from property dispositions, and real estate related impairment charges, it provides a performance measure that, when compared year over year, reflects the impact to operations from trends in occupancy rates, rental rates, operating costs, and interest costs, providing perspective not immediately apparent from net income. FFO does not represent cash generated from operating activities in accordance with GAAP and should not be considered as an alternative to net income (determined in accordance with GAAP), as an indication of the Company’s financial performance or to cash flow from operating activities (determined in accordance with GAAP) as a measure of the Company’s liquidity, nor is it indicative of funds available to fund the Company’s cash needs, including the Company's ability to make cash distributions.
Funds Available for Distribution (FAD)
FAD is a non-GAAP financial measure that is calculated as FFO plus non-real estate depreciation, allowance for straight line credit loss, adjustment for straight line operating lease rent, non-cash deferred compensation, and pro-rata adjustments for these items from the Company's unconsolidated JVs, less straight line rental income, free rent net of amortization, second cycle tenant improvement and leasing costs, and recurring capital expenditures.
FAD is not intended to represent cash flow for the period and is not indicative of cash flow provided by operating activities as determined in accordance with GAAP. FAD is presented solely as a supplemental disclosure with respect to liquidity. Because all companies do not calculate FAD the same way, the presentation of FAD may not be comparable to similarly titled measures of other companies. FAD does not represent cash flow from operating, investing and finance activities in accordance with GAAP and should not be considered as an alternative to net income (determined in accordance with GAAP), as an indication of the Company’s financial performance, as an alternative to net cash flows from operating activities (determined in accordance with GAAP), or as a measure of the Company’s liquidity.
Earnings Before Interest, Taxes, Depreciation and Amortization for Real Estate (EBITDAre)
EBITDAre is a non-GAAP financial measure. The Company computes EBITDAre in accordance with standards established by NAREIT, which may not be comparable to EBITDAre reported by other REITs that do not compute EBITDAre in accordance with the NAREIT definition, or that interpret the NAREIT definition differently than the Company does. The White Paper on EBITDAre approved by the Board of Governors of NAREIT in September 2017 defines EBITDAre as net income (loss) (computed in accordance with Generally Accepted Accounting Principles, or GAAP), plus interest expense, plus income tax expense, plus depreciation and amortization, plus (minus) losses and gains on the disposition of depreciated property, plus impairment write-downs of depreciated property and investments in unconsolidated joint ventures, plus adjustments to reflect the entity's share of EBITDAre of unconsolidated joint ventures.
The Company presents EBITDAre because the Company believes that EBITDAre, along with cash flow from operating activities, investing activities and financing activities, provides investors with an additional indicator of the Company’s ability to incur and service debt. EBITDAre should not be considered as an alternative to net income (determined in accordance with GAAP), as an indication of the Company’s financial performance, as an alternative to net cash flows from operating activities (determined in accordance with GAAP), or as a measure of the Company’s liquidity.
Net Operating Income (NOI) and Cash NOI
NOI is a non-GAAP financial measure that is calculated as operating income before transaction related costs, gains/losses on early extinguishment of debt, marketing general and administrative expenses and non-real estate revenue. Cash NOI is also a non-GAAP financial measure that is calculated by subtracting free rent (net of amortization), straight-line rent, and the amortization of acquired above and below-market leases from NOI, while adding operating lease straight-line adjustment and the allowance for straight-line tenant credit loss.
The Company presents NOI and Cash NOI because the Company believes that these measures, when taken together with the corresponding GAAP financial measures and reconciliations, provide investors with meaningful information regarding the operating performance of properties. When operating performance is compared across multiple periods, the investor is provided with information not immediately apparent from net income that is determined in accordance with GAAP. NOI and Cash NOI provide information on trends in the revenue generated and expenses incurred in operating the Company's properties, unaffected by the cost of leverage, straight-line adjustments, depreciation, amortization, and other net income components. The Company uses these metrics internally as performance measures. None of these measures is an alternative to net income (determined in accordance with GAAP) and same-store performance should not be considered an alternative to GAAP net income performance.
Coverage Ratios
The Company presents fixed charge and debt service coverage ratios to provide a measure of the Company’s financial flexibility to service current debt amortization, interest expense and operating lease rent from current cash net operating income. These coverage ratios represent a common measure of the Company’s ability to service fixed cash payments; however, these ratios are not used as an alternative to cash flow from operating, financing and investing activities (determined in accordance with GAAP).
SLG-EARN
FAQ
What was SLG's Q4 2024 earnings per share?
How much did SLG's FFO increase in Q4 2024?
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