* OCTOBER 26, 2011, 7:24 P.M. ET
SL Green 3Q Net Off 88% Absent Prior-Year Gain
DOW JONES NEWSWIRES
SL Green Realty Corp.'s (SLG) third-quarter earnings fell 88% absent last year's large loan-repayment gain, though a key gauge of real-estate profitability fell less than expected.
The real-estate investment trust, one of the largest owners of New York office space, had seen core results improve for most of the past year as a tightening market in the city boosted rental rates. Like many of its peers, SL Green is still benefiting as commercial real-estate conditions improve faster in key urban markets than in some suburban areas.
The REIT expanded its Manhattan holdings this month by forming a venture with New York real-estate company Stonehenge Partners to buy eight New York City retail and multifamily properties for $416 million. The deal is expected to close in the first quarter.
The latest results still declined after the company last year repaid the first mortgage and senior mezzanine loan on its 510 Madison Ave. property, adding 81 cents a share to the earlier period's bottom line.
In the latest quarter, SL Green posted a profit of $14.6 million, down from $119 million a year earlier. Including preferred dividends, per-share earnings fell to 8 cents from $1.42.
Funds from operations, a key profitability metric for REITs, fell to $1 from $1.82 a share. Before transaction-related costs, FFO reached $1.01 a share, down from $1.05. Revenue slipped 3.3% to $308.6 million.
Analysts polled Thomson Reuters had projected per-share FFO at 99 cents with revenue of $282 million.
Occupancy at SL Green's Manhattan comparable buildings was 95.1%, excluding 100 Church St., up from 94.4% a year earlier and 94.9% in the second quarter. The company took control of 100 Church St. last year after its previous owners defaulted on a loan of which SL Green was a major creditor.
The company's suburban portfolio was 85.9% full, compared with 87% reported a year earlier and 86.4% in the second quarter.
Starting rents for Manhattan properties averaged $54.11 per rentable square foot, a 6.7% jump.
Net rental revenue jumped 25%, while preferred equity and investment gains slumped 78%.
SL Green Realty shares closed at $67.54 Wednesday and were inactive after hours. The stock is off 22% over the past three months.
-By Drew FitzGerald, Dow Jones Newswires; 212-416-2909; Andrew.FitzGerald@dowjones.com
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SL Green 3Q Net Off 88% Absent Prior-Year Gain
DOW JONES NEWSWIRES
SL Green Realty Corp.'s (SLG) third-quarter earnings fell 88% absent last year's large loan-repayment gain, though a key gauge of real-estate profitability fell less than expected.
The real-estate investment trust, one of the largest owners of New York office space, had seen core results improve for most of the past year as a tightening market in the city boosted rental rates. Like many of its peers, SL Green is still benefiting as commercial real-estate conditions improve faster in key urban markets than in some suburban areas.
The REIT expanded its Manhattan holdings this month by forming a venture with New York real-estate company Stonehenge Partners to buy eight New York City retail and multifamily properties for $416 million. The deal is expected to close in the first quarter.
The latest results still declined after the company last year repaid the first mortgage and senior mezzanine loan on its 510 Madison Ave. property, adding 81 cents a share to the earlier period's bottom line.
In the latest quarter, SL Green posted a profit of $14.6 million, down from $119 million a year earlier. Including preferred dividends, per-share earnings fell to 8 cents from $1.42.
Funds from operations, a key profitability metric for REITs, fell to $1 from $1.82 a share. Before transaction-related costs, FFO reached $1.01 a share, down from $1.05. Revenue slipped 3.3% to $308.6 million.
Analysts polled Thomson Reuters had projected per-share FFO at 99 cents with revenue of $282 million.
Occupancy at SL Green's Manhattan comparable buildings was 95.1%, excluding 100 Church St., up from 94.4% a year earlier and 94.9% in the second quarter. The company took control of 100 Church St. last year after its previous owners defaulted on a loan of which SL Green was a major creditor.
The company's suburban portfolio was 85.9% full, compared with 87% reported a year earlier and 86.4% in the second quarter.
Starting rents for Manhattan properties averaged $54.11 per rentable square foot, a 6.7% jump.
Net rental revenue jumped 25%, while preferred equity and investment gains slumped 78%.
SL Green Realty shares closed at $67.54 Wednesday and were inactive after hours. The stock is off 22% over the past three months.
-By Drew FitzGerald, Dow Jones Newswires; 212-416-2909; Andrew.FitzGerald@dowjones.com
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Editors' Picks
* [TV_REVIEW]
A Child Running for His Life
* [COVER_MAIN2]
Stephen King's New Monster
* [FILM1]
'Like Crazy': From Cupid's Blunders, Wonders
* [ARENA]
Three Years Inside a Madman's Mind
* [THEATER1]
The 'Follies' of Our Dreams
WSJ Web Slice
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LINKS TO ACTUAL PAGE CONTAINING WEB SLICE FUNCTIONALITY. 15
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