| Over a week ago | ||||
SL Green Realty announced… SL Green Realty announced that it has sold a 49% interest in 220 East 42nd Street to a real estate fund managed by Meritz Alternative Investment Management for gross consideration of $790.1M. SL Green retained a 51% interest in the property and will continue to oversee management and leasing of the building. The transaction generated net cash proceeds to SL Green of $136.1M. "This transaction demonstrates the continued global demand for core New York City office properties, particularly those that are well leased on a long-term basis to credit tenants," said Harrison Sitomer, Senior Vice President of SL Green. "With the new joint venture, 220 East 42nd Street will continue to provide SL Green shareholders with steady contractual cash flow. We are thrilled to be partnering again with Meritz on this historic asset." | ||||
Reports Q2 revenue… Reports Q2 revenue $218.1M, consensus $189.61M. | ||||
| Over a month ago | ||||
SL Green Realty announced… SL Green Realty announced that it has closed a $3B 10-year, fixed-rate financing of One Vanderbilt Avenue, which is owned in a joint venture between SL Green, National Pension Service of Korea and Hines Interests, LP. The loan was securitized in a single asset, single borrower agented CMBS transaction. The agents were a consortium of financial institutions, led by Wells Fargo Bank, N.A. and Goldman Sachs Bank USA, that also included Bank of America N.A., Bank of China, Bank of Montreal, Deutsche Bank, JP Morgan Chase Bank, N.A., Barclays Capital Real Estate Inc. and Citi. The new financing carries a stated coupon of 2.855 percent, equivalent to a rate of 2.947 percent inclusive of hedging costs, and replaces the previous $1.75B construction facility with an outstanding balance at the time of payoff of approximately $1.54B. One Vanderbilt is currently 89 percent leased. | ||||
Deutsche Bank analyst… Deutsche Bank analyst Derek Johnston raised the firm's price target on SL Green Realty to $77 from $66 and keeps a Hold rating on the shares. The return to office post pandemic is gaining focus as companies and employees prepare to return en masse in September, Johnston tells investors in a research note. Office real estate investment trusts have traded higher as earnings remained largely intact, except for ancillary income such as parking, retail and any hotel revenues, which largely remain under pressure, says the analyst. He believes the return of ancillary revenues will aid earnings growth and "fill the earnings hole afflicting the Office REITs." | ||||
Return of NYC In-Person… Return of NYC In-Person Property Tour will be held in New York on June 21-22. | ||||
Return of NYC In-Person… Return of NYC In-Person Property Tour will be held in New York on June 21-22. | |
Wolfe Research analyst… Wolfe Research analyst Andrew Rosivach initiated coverage of SL Green Realty with a Peer Perform rating and $90 price target. The analyst believes the company's earnings growth will improve given contributions from oncoming development projects but will grow slower than the sector. | |
Piper Sandler analyst… Piper Sandler analyst Alexander Goldfarb raised the firm's price target on SL Green Realty to $88 from $75 and keeps a Neutral rating on the shares after meeting with movement. Despite the executive comp plan getting voted down at the recent shareholder meeting, "this team continues to pursue all avenues to create value," Goldfarb tells investors in a research note. | |
SL Green Realty announced… SL Green Realty announced the signing of three leases at One Vanderbilt Avenue that brings the building to 89% leased. A new 97,652-square-foot, 15-year lease covering floors 63-66 was signed with one tenant. TD Securities signed a 24,020-square-foot, 20-year lease expansion covering a portion of the 11th floor, which increases TD Securities' commitment within the building to 142,892 square feet. Additionally, InTandem Capital Partners LLC and Sagewind Capital LLC jointly signed a 2,163-square-foot, 7-year lease expansion covering a portion of the 24th floor, which increases their footprint within the building to 12,328 square feet. "We're delighted to welcome our newest tenant and expand our relationships with TD Securities, InTandem and Sagewind," said Steven Durels, Executive Vice President and Director of Leasing and Real Property at SL Green. "One Vanderbilt continues to attract companies seeking best-in-class office space, location and amenities and is now on track to exceed our recently revised year-end leasing projection of 90%." | |
Goldman Sachs analyst… Goldman Sachs analyst Caitlin Burrows assumed coverage of SL Green Realty with a Buy rating and $91 price target. The analyst assumed coverage of five U.S. office real estate investment trust with a constructive view on long-term demand for high quality office space, but a currently balanced relative stock view given recent valuation moves and expectations for earnings growth. She believes SL Green's shares offer an attractive risk/reward profile. |