Yahoo Finance SL Green (SLG) Secures 31 Leases, Exceeds 800K Sq. Ft. YTD
SL Green Realty Corp. SLG, the leading office landlord in New York City, has posted a notable uptick in office leasing. In the past 60 days, SL Green has signed 31 office leases covering around 300,000 square feet. This has lifted SL Green's year-to-date office leasing volume to more than 800,000 square feet, with an office leasing pipeline exceeding one million square feet.
One standout transaction saw a world-leading sovereign wealth fund renew and expand its lease at 280 Park Avenue. The tenant signed a 15-year renewal and expansion lease covering 99,568 square feet, renewing its hold of 49,851 square feet on the entire 9th floor and expanding into 49,717 square feet to include the full 10th floor.
Also at 245 Park Avenue, two additional leases totaling 86,840 square feet were inked, contributing to the quarter's impressive statistics.
At 245 Park Avenue, EQT Partners, a prominent Swedish private equity firm, signed a new 15-year lease for more than 76,000 square feet on the 33rd and 34th floors. Meanwhile, Angelo Gordon, a global alternative investment manager specializing in real estate, expanded its lease by 10,636 square feet on the 23rd floor.
Stone Point Capital, LLC also upped its footprint, taking an additional 12,692 square feet on the 50th floor at One Vanderbilt Avenue. This increased its total commitment to 28,874 square feet.
SL Green's executive vice president, director of Leasing and Real Property, Steven Durels, expressed optimism, noting that "leasing velocity continues to improve." According to Durels, “Buildings that are located near public transportation, are well amenitized, that provide healthy work environments and are managed by high-quality, well capitalized operators are realizing leasing success.”
SL Green is demonstrating an encouraging leasing performance in 2023, underlining its strength as New York City's top office landlord. This trend highlights the resilience of the NYC commercial real estate market and SL Green's strategic position within it.
Moreover, SLG’s opportunistic investment policy and solid balance sheet strength position it well to capitalize on long-term growth opportunities. However, the choppy office market environment and high-interest rates remain concerns.
Shares of this Zacks Rank #3 (Hold) company have outperformed the industry it belongs to in the past month. The company’s shares have rallied 6.1% against the industry’s decline of 2.2% over this period.
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Stocks to Consider
Some better-ranked stocks from the REIT sector are Rexford Industrial Realty REXR and EastGroup Properties EGP, each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for Rexford Industrial Realty’s current-year FFO per share has been revised 1.4% north over the past two months to $2.19. This indicates an 11.7% increase year over year.
The Zacks Consensus Estimate for EastGroup Properties’ 2023 FFO per share has been revised marginally upward over the past month to $7.56. This indicates an 8% increase year over year.
Note: Anything related to earnings presented in this write-up represents FFO — a widely used metric to gauge the performance of REITs.
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