SLG - SL Green Realty: Moving Ahead In An Environment Where Few Make Progress At All
2024-04-19 04:58:16 ET
Summary
- SL Green announced strong first quarter results, with a focus on debt extinguishment gains.
- The company has a track record of successfully rehabilitating buildings and selling interests for profit.
- SL Green is converting office space to residential units. This moves the space from an oversupplied area to an undersupplied area.
- Management is either meeting budget goals or is slightly ahead of some goals.
SL Green ( SLG ) announced a big first quarter. While the market's attention was largely fixated on the big gains from debt extinguishment and other one-time items, management has made steady progress in continuing operations that should result in a premium valuation for this REIT.
Debt Extinguishment
What likely got the market's attention was:
SL Green Realty: Moving Ahead In An Environment Where Few Make Progress At All" The Company reported FFO for the quarter ended March 31, 2024 of $215.4 million, or $3.07 per share, or $68.6 million, or $0.98 per share, inclusive of $141.7 million, or $2.02 per share, of gain on discounted debt extinguishment at 2 Herald Square and $5.1 million, or $0.07 per share, of non-cash fair value adjustments on a mark-to-market derivative."