Company announces completion of “$1.0
Billion Plan,” further asset sales, May collections and plans to
safely welcome tenants back to office buildings
SL Green Realty Corp. (NYSE: SLG), Manhattan’s largest office
landlord, has provided an update on recent activities and progress
on key initiatives.
“Despite the challenges created by the Covid-19 crisis, I’m very
pleased with the performance of the Company throughout the last
several months. Our collections have held up well as a result of
our high quality, long dated and creditworthy rent roll, and we
have amassed a substantial amount of cash liquidity in a short
period of time, which is the reflection of the hard work of our
employees and the resiliency of the Manhattan real estate
marketplace. We have developed a strong re-entry plan to welcome
tenants back to their offices in the coming weeks,” said Marc
Holliday, Chairman and CEO of SL Green Realty Corp. “This is
also a time to give back to the City we love, and we’re proud of
our role in launching Food1st, which has now raised $2.0 million
and has already served over 100,000 free meals to first responders
and New Yorkers in need.”
In conjunction with this announcement and REITWEEK, NAREIT’s
investor forum on June 2, 2020, the Company will be making a
presentation available in the Investors section of the SL Green
Realty Corp. website at www.slgreen.com.
Key transactions: Since April, SL Green has closed, or
placed under contract, dispositions and joint ventures totaling
$919.3M of transaction value.
- Closed on the sale of the unencumbered retail condominium at
609 5th Avenue for total consideration of $168.0 million,
- Sold a 49.5% joint venture interest in One Madison Avenue to
the National Pension Service of Korea and Hines Interest, LP, which
have committed aggregate equity to the project of no less than
$492.2 million, and
- Generated $485.1 million of cash from the debt and preferred
equity (“DPE”) portfolio through the sale of five DPE positions
totaling $259.1 million of proceeds at an average price of 99.5% of
book value and repayments totaling $226.0 million of proceeds. A
portion of the proceeds from these activities was used to repay the
Company’s DPE financing facility in its entirety.
“$1.0 Billion Plan” achieved ahead of schedule, allowing
share repurchases to resume: In April, SL Green announced the
creation of its “$1 Billion Dollar Plan” to amass at least $1.0
billion of cash by June 30, 2020, creating a strategic cash reserve
through the sale of real estate assets, the sale of select DPE
investments together with repayments, and financing and refinancing
activities. As a result of the transactions described above, among
other activities, the Company has achieved its goal more than 30
days ahead of its initial timeline. This achievement has allowed
the Company to restart its share repurchase program, repurchasing
$44.1 million of common stock to date in the second quarter.
May Collections: Throughout the COVID-19 pandemic, SL
Green has collected the vast majority of its property billings,
reflecting the credit-quality of the company’s office and retail
tenants. April collections have now reached 95.1% for office, 63.3%
for retail and 89.1% overall, up from 91.8%, 60.0% and 85.7%,
respectively, as of April 30.
To date, May collections are on a similar trajectory to April
with collections of 91.1% for office, 54.7% for retail and 84.7%
overall. The Company expects May collections to increase further
during June as some tenants are taking longer to make payments than
they have historically.
Construction projects moving forward: SL Green continues
to make significant progress on the Company’s development and
redevelopment projects, including its most prominent project, the
1.7 million square foot, 1,401 foot tall One Vanderbilt Avenue,
which remains ahead of schedule and more than $100 million under
budget. The skyline defining tower is 67% leased and is now
expected to obtain its Temporary Certificate of Occupancy (“TCO”)
on or before September 14, 2020.
SL Green plans for safe return to offices: The Company is
implementing its “SLG Forward” initiative, a comprehensive approach
to providing a safe and welcoming environment to all tenants,
visitors and employees. The plan includes a significant financial
investment by the Company to provide enhancements to every
property’s environment, infrastructure, procedures, technology,
cleaning and air filtration in response to COVID-19.
SL Green gives back to NYC through Food1st: With the
formation of “Food1st”, a non-profit foundation, SL Green has
helped deliver over 100,000 meals daily to front-line, first
responders and medical personnel, elderly New Yorkers and food
insecure families. In addition to addressing the increasing demand
for food assistance across New York City, Food1st has also helped
support New York City’s food and beverage industry by re-activating
restaurant kitchens, to serve the City and bring restaurant staff
safely back to work. SL Green contributed $1.0 million as an
initial donation to the independent organization while an
additional $1.0 million has been contributed by hundreds of other
companies, organizations and individuals who have joined the effort
to address this crisis. More information is available at
www.food1stfoundation.org.
About SL Green
SL Green Realty Corp., an S&P 500 company and Manhattan's
largest office landlord, is a fully integrated real estate
investment trust, or REIT, that is focused primarily on acquiring,
managing and maximizing value of Manhattan commercial properties.
As of March 31, 2020, SL Green held interests in 102 buildings
totaling 49.4 million square feet. This included ownership
interests in 28.8 million square feet of Manhattan buildings and
19.6 million square feet securing debt and preferred equity
investments.
Forward Looking Statements
This press release includes certain statements that may be
deemed to be “forward-looking statements”. All statements, other
than statements of historical facts, included in this press release
that address activities, events or developments that we expect,
believe or anticipate will or may occur in the future, are
forward-looking statements. Forward-looking statements are not
guarantees of future performance and we caution you not to place
undue reliance on such statements. Forward-looking statements are
generally identifiable by the use of the words “may,” “will,”
“should,” “expect,” “anticipate,” “estimate,” “believe,” “intend,”
“project,” “continue,” or the negative of these words, or other
similar words or terms.
Forward-looking statements contained in this press release are
subject to a number of risks and uncertainties, many of which are
beyond our control, that may cause our actual results, performance
or achievements to be materially different from future results,
performance or achievements expressed or implied by forward-looking
statements made by us. Factors and risks to our business that could
cause actual results to differ from those contained in the
forward-looking statements are described in our filings with the
Securities and Exchange Commission. These risks and uncertainties
include, but are not limited to, potential risks and uncertainties
relating to the novel coronavirus (COVID-19).
SLG – GEN
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version on businesswire.com: https://www.businesswire.com/news/home/20200601005734/en/
Matt DiLiberto Chief Financial Officer SL Green Realty Corp.
(212) 594-2700
SL Green Realty (NYSE:SLG)
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