SL Green Realty Corp. (SLG: Quote) Wednesday reported a decline in Funds From Operations for the first quarter, as lower margins offset growth in rentable area and improved rents at its Manhattan portfolio.
Revenue for the quarter improved from last year, but was somewhat offset by increased operating expenses and higher real estate taxes.
Meanwhile, New York's largest office landlord said its net rentable area in Manhattan at the end of the quarter rose to 23.8 million square feet from 22.3 million square feet last year. Average starting cash rent per square foot increased to $69.8 from $48.2 a year ago.
Quarter-end occupancy in the company's stabilized Manhattan same-store properties was 93.4 percent, compared to 93.1 percent last year. Quarter-end occupancy in the suburban portfolio was up one basis point at 86.4 percent.
SL Green Realty reported first-quarter Funds From Operations or FFO of $99 million or $1.10 per share, compared to $143 million or $1.75 per share last year.
On average, 18 analysts polled by Thomson Reuters expected earnings of $1.09 per share for the quarter. Analysts' estimates typically exclude special items.
SL Green Realty reported net income to common shares for the quarter of $25 million or $0.29 per share, compared to $81 million or $1.01 per share a year ago. Real estate investment trusts usually include depreciation and other items that reduce net earnings.
The company's revenue for the quarter was $339 million, compared to $329 million in the prior year. Nine analysts estimated revenue of $300.48 million.
Operating income for the quarter was lower at $182 million, compared to $210 million a year ago. Same store net operating income totaled $167.4 million, compared to $168.5 million.
The company during the first quarter 2012 sold 2.9 million shares of common stock for gross proceeds of $225 million.
SLG closed Monday at $78.61, up $1.49 or 1.93%, on a volume of about 1 million shares on the NYSE. Over the past year, the stock traded in a range of $52.41 - $90.01.
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by RTT Staff Writer
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