Mar 31, 2020

SL Green Q1 2020 Earnings Report

Reported an increase in net income and FFO, driven by strategic asset sales and incremental income from Credit Suisse.

Key Takeaways

SL Green Realty Corp. reported a strong first quarter with net income attributable to common stockholders of $1.47 per share and FFO of $2.08 per share. The results were boosted by the sale of The Olivia and incremental income from Credit Suisse. However, the company is revising its earnings guidance for the year due to the expected impact of the COVID-19 pandemic.

Net income attributable to common stockholders was $1.47 per share, including a $0.88 per share gain from the sale of The Olivia.

FFO was $2.08 per share, including $0.46 per share of incremental income from Credit Suisse, offset by $0.14 per share of reserves.

Same-store cash NOI increased 0.7%, excluding lease termination income and free rent to Viacom.

The company revised its full-year earnings guidance due to the expected impact of the COVID-19 pandemic.

Total Revenue
$195M
Previous year: $213M
-8.1%
EPS
$2.08
Previous year: $1.7
+22.4%
Manhattan Occupancy
95.5%
Same-store NOI Growth
0.7%
Gross Profit
$206M
Previous year: $192M
+7.8%
Cash and Equivalents
$554M
Previous year: $144M
+284.0%
Total Assets
$13.2B
Previous year: $13.4B
-1.2%

SL Green

SL Green

SL Green Revenue by Segment

Forward Guidance

The Company is revising its earnings guidance ranges for the year ending December 31, 2020 to net income per share of $1.83 to $2.33 and FFO per share of $6.60 to $7.10 per share as we expect that the global COVID-19 pandemic will have an impact on our business, and our industry as a whole, going forward.

Challenges Ahead

  • Slowdown in leasing activity
  • Reduction in market rents
  • Reduced collections in owned properties or debt & preferred equity portfolio
  • Delays and local restrictions around development and redevelopment activities
  • Increased expenditures related to enhanced safety policies and procedures

Revenue & Expenses

Visualization of income flow from segment revenue to net income