SL Green Realty Reports Strong Q1 2024 Earnings

SL Green Realty Corp. has reported its first-quarter 2024 earnings, with a significant turnaround in its financial performance compared to the same period in 2023. The company reported a net income attributable to common stockholders of $0.20 per share for the first quarter of 2024, a substantial improvement from a net loss of $0.63 per share for the same period in 2023.

The company's Funds from Operations (FFO) also showed impressive growth, standing at $3.07 per share for the first quarter of 2024, inclusive of gains on discounted debt extinguishment and positive non-cash fair value adjustments on a mark-to-market derivative. This marks a substantial increase from the FFO of $1.53 per share reported for the same period in 2023.

In line with its improved financial performance, SL Green Realty Corp. has raised its 2024 FFO guidance range to $7.35 to $7.65 per share, compared to the previous guidance range of $5.90 to $6.20 per share, primarily reflecting gains on discounted debt extinguishments at various properties.

The company's operating and leasing activity also demonstrated positive momentum, with the same-store cash net operating income (NOI) increasing by 1.2% for the first quarter of 2024 compared to the same period in 2023, excluding lease termination income.

Furthermore, SL Green Realty Corp. signed 60 office leases covering 633,660 square feet in the first quarter of 2024. The average rent on the Manhattan office leases signed in the first quarter of 2024 was $72.38 per rentable square foot, with an average lease term of 6.4 years and average tenant concessions of 6.8 months of free rent.

The company's Manhattan same-store office occupancy stood at 89.2% as of March 31, 2024, exceeding the company's projections. It expects to increase this occupancy to more than 91.5% by December 31, 2024, inclusive of leases signed but not yet commenced.

On the investment front, SL Green Realty Corp. entered into contracts to acquire and sell properties, demonstrating strategic portfolio management. It also launched fundraising for a $1.0 billion opportunistic debt fund to capitalize on current capital market dislocations.

In the realm of sustainability and corporate responsibility, the company received prestigious accolades, including the Energy Star Partner of the Year Sustained Excellence Award and recognition for its ESG performance, further underscoring its commitment to sustainable practices.

The company's performance is also evident in its dividend declarations, with three monthly ordinary dividends on its outstanding common stock of $0.25 per share and a quarterly dividend on its outstanding preferred stock.

SL Green Realty Corp.'s impressive financial and operational performance in the first quarter of 2024 sets a positive trajectory for the company, underpinned by strategic initiatives, improved earnings guidance, and a strong focus on sustainability. Following these announcements, the company's shares moved -2.6%, and are now trading at a price of $48.38. If you want to know more, read the company's complete 8-K report here.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.