NEW YORK
Manhattan office property owner SL Green Realty Corp. said Monday its funds from operations jumped 86 percent in the third quarter as the Manhattan office property owner benefited from a gain on the repayment of debt on an officer tower.
The real estate investment trust said funds from operations rose to $145.3 million, or $1.82 a share, in the three months ended Sept. 30. That compares with FFO of $78.1 million, or 98 cents a share, in the same period last year.
The results included a gain related to the debt payoff of about $64.8 million, or 81 cents a share, the company said.
Analysts polled by Thomson Reuters, on average, expected FFO of $1.79 a share.
FFO, a widely used gauge of real estate operating performance, adds depreciation and amortization expenses, as well as other non-operating items, back to net income.
The company's net income attributable to common shareholders was $111.5 million, or $1.42 a share, compared with a loss of $2.5 million, or 3 cents a share, in the year-ago period.
The third-quarter results included a 44 cent a share gain on the sale of a building and 81 cents a share on the gain from the debt repayment.
Revenue for the quarter rose to $323.3 million from $245.8 million.
Occupancy for the company's portfolio of Manhattan properties stood at 94.4 percent as of Sept. 30, excluding a property the company foreclosed in January.
During the quarter, SL Green signed or started 55 Manhattan office leases totaling 586,593 square feet, with average starting rents of $41.22 per rentable square foot. Average Manhattan office starting rents rose by 1.3 percent on these leases over previously fully escalated rents on the same office spaces.
SL Green also signed or began 17 suburban office leases totaling 206,666 square feet, with average starting rents of $29.31 per rentable square foot. Occupancy was 87 percent.
Meanwhile, SL Green said Monday it had reached an agreement with The Moinian Group to recapitalize a 26-story, midtown Manhattan office tower now in the final stages of redevelopment.
The deal calls for SL Green to potentially make an investment to help complete the $175 million redevelopment and includes a "standby mortgage commitment."
Once the renovation is complete, the companies aim to market the 768,565-square-foot Three Columbus Circle to office and retail tenants.
Shares of SL Green added 7 cents to $70.11 in aftermarket trading after rising 30 cents to $70.04 during the regular session.
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