2024-01-25 18:19:10 ET
SL Green Realty Corporation (SLG)
Q4 2023 Earnings Conference Call
January 25, 2024, 14:00 ET
Company Participants
Marc Holliday - Interim President, Chairman & CEO
Matthew DiLiberto - CFO
Brett Herschenfeld - EVP, Retail & Opportunistic
Harrison Sitomer - CIO
Steven Durels - EVP & Director, Leasing & Real Property
Conference Call Participants
Stephen Sakwa - Evercore ISI
Alexander Goldfarb - Piper Sandler & Co.
William Catherwood - BTIG
Anthony Paolone - JPMorgan Chase & Co.
John Kim - BMO Capital Markets
Caitlin Burrows - Goldman Sachs Group
Michael Griffin - Citigroup
Blaine Heck - Wells Fargo Securities
Ronald Kamdem - Morgan Stanley
Nicholas Yulico - Scotiabank
Vikram Malhotra - Mizuho Securities
Peter Abramowitz - Jefferies
Presentation
Operator
Thank you, everybody, for joining us, and welcome to SL Green Realty Corp.'s Fourth Quarter 2023 Earnings Results Conference Call. This conference call is being recorded. At this time, the company would like to remind listeners that during the call, management may make forward-looking statements [Technical Difficulty] cannot rely on forward-looking statements as predictions of the future events as actual results and events may differ from any forward-looking statements that management may make today. All forward-looking statements made by management on this call are based on their assumptions and beliefs as of today. Additional information regarding the uncertainties and other factors that could cause such differences to appear are set forth in the Risk Factors and in D&A section of the company's latest Form 10-K and other subsequent reports filed by the company with the Securities and Exchange Commission.
Also during today's conference call, the company may discuss non-GAAP financial measures as defined by Regulation G under the Securities Act. The GAAP financial measures most directly comparable to each non-GAAP financial measure discussed and the reconciliation of the differences between each non-GAAP financial measures and the comparable GAAP financial measures can be found on both the company's website at www.slgreen.com by selecting the press release regarding the company's first quarter 2023 earnings and in our supplemental information included in our current report on Form 8-K relating to our fourth quarter 2023 earnings. Before turning the call over to Marc Holliday, Chairman and Chief Executive Officer of SL Green Realty Corp, I would like to ask those of you participating in the question-and-answer session. of the call, please limit your questions to 2 per person. Thank you. I would like to turn the call over to Marc Holliday. Please go ahead, Marc.
Marc Holliday
Okay. Thank you. Good afternoon and glad everybody could join us today. I'm extremely happy, and I'm extremely proud with how we ended 2023, navigating what was a challenging year and showing that we have turned the corner going into 2024. We're just a few weeks into the year and only 7 weeks on from our investor conference, but we already have so much new activity that we want to talk about and share with you today. Normally, I don't like to repeat the earnings press release. Most of you have it. You've read it and I don't like to do that on these calls. But I think today is different. I think it deserves a moment to reflect on what we have achieved in the fourth quarter and at the outset of the year during these first few weeks.
At 2 Herald, we increased our ownership in a well-located asset and fully resolved a $182.5 million leasehold mortgage, all of which was accomplished for very little out of pocket. There's more work to be done for sure, but we are on our way to stabilizing this asset. There was seismic news in New York City retail this month with Jeff Sutton our long-term partner and friend and among the best retail deal makers in the city, wait, Jeff, if you're listening in, I know what you're thinking, the best retail deal maker in the city, pulled off not 1, but 2 amazing deals. 717 Fifth Avenue sold for $963 million generating full repayment of the capital stack plus distributions to Sutton and ourselves equating to approximately $8,000 per square foot of sale price. And to prove this as an outlier right across the street, add another legacy Green Warton asset, Prada bought 720 and 724 Fifth Half for $835 million a deal that was also just recently closed. And these deals developed quickly and confidently and I think it's very, very exciting for the city. We had a third great example of user acquisitions in the retail space in the past 30 days with the Swiss retailer Acre buying the entire retail condo that we owned at 21 East sixth Street for over $40 million and exceeding $7,000 per square foot thereby putting an exclamation point on the trend of retailers making permanent commitments to New York City through the purchase of desirable retail assets. This is Acre's second purchase from SL Green over the past year. We expect this trend to continue as we are already aware of another transaction in the works in that part of town....
Read the full article on Seeking Alpha
For further details see:
SL Green Realty Corporation (SLG) Q4 2023 Earnings Call Transcript