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SL Green Realty Corp. Reports Third Quarter 2009 FFO of $0.98 Per Share and EPS of $(0.03) Per Share

Posted by Dana in October 27th 2009

SL Green Realty Corp. (NYSE: SLG):
* Third quarter FFO totaled $0.98 per share (diluted) compared to $1.37 per share (diluted) for the third quarter of 2008.
* Net loss for the third quarter of 2009 totaled $0.03 share (diluted) compared to net income of $0.49 per share (diluted) in the same period in the prior year.
* Recognized combined same-store GAAP NOI growth of 5.9% for the third quarter, including 5.6% from the consolidated same-store properties and 6.5% from the unconsolidated joint venture same-store properties. For the first nine months of 2009, combined same-store GAAP NOI growth was 3.5%, including 3.3% from the consolidated same-store properties and 4.1% from the unconsolidated joint venture same-store properties.
* Signed 28 Manhattan office leases totaling 251,888 square feet with average starting rents of $47.31 per rentable square foot during the third quarter. Average Manhattan office starting rents increased by 5.2% on these leases over previously fully escalated rents.
* Maintained Manhattan occupancy rate of 95.7% with increases in occupancy at 100 Park Avenue, 625 Madison Avenue, 750 Third Avenue and 1515 Broadway.
* Amended the 2007 unsecured revolving credit facility to provide the Company with the ability to acquire a portion of the loans outstanding under the facility. A subsidiary of the Company subsequently repurchased $48.0 million of the total commitment at a discount, and the Company realized a $7.1 million gain on the early extinguishment of debt.
* Repurchased approximately $33.0 million of the Company’s unsecured notes and exchangeable bonds since July 1, 2009, realizing gains on early extinguishment of debt aggregating approximately $1.2 million. Since October 2008, the Company has repurchased approximately $757.3 million of its debt for approximately $557.2 million, which resulted in gains on early extinguishment of approximately $155.7 million.
* Closed on a $145.0 million refinancing of 420 Lexington Avenue with a new lender. This financing, provided at a 7.5% fixed interest rate, matures in 2016 and features two one-year extension options. This transaction resulted in a $36.9 million increase in the indebtedness secured by the property and generated approximately $22.7 million in net cash proceeds. Proceeds from the refinancing were used in part to repay the former mortgage of $108.1 million.
* Closed on a $215.0 million refinancing of 100 Park Avenue with new lenders. This financing, provided at a 6.64% fixed interest rate, matures in 2014 and features two one-year extension options. The refinancing enabled the joint venture to retire the former $175.0 million mortgage.
* Amended the construction financing at 1551-1555 Broadway with the existing lenders by extending the maturity date to October 2011 and fully drawing down the loan. This loan, which has a one-year extension option, carries a variable interest rate of 400 basis points over the 30-day LIBOR.
* Successfully restructured the 100 Church structured finance investment resulting in control being obtained by the Company and its co-lender with full beneficial ownership expected to occur in the first quarter of 2010.

The Company’s executive management team, led by Marc Holliday, Chief Executive Officer, will host a conference call and audio web cast on Tuesday, October 27, 2009 at 2:00 pm ET to discuss the financial results.