SL Green Sees Y-O-Y Gains in Q1 FFO, NOI

NEW YORK CITY-SL Green Realty Corp. reported gains in funds from operations, revenues, operating income and net operating income for the first quarter of 2013 compared to the first three months of 2012. The office REIT said Q1 FFO rose to $1.22 per diluted share compared to FFO of $1.10 per diluted share in the same quarter a year ago, while same-store cash NOI on a combined basis increased by 4.4% to $181.7 million for the quarter ended March 31, 2013 as compared to the same period in '12.

During the quarter, SL Green signed 55 Manhattan office leases totaling 585,454 square feet and 36 suburban deals totaling 305,916 square feet. Mark-to-market on replacement leases for Manhattan and the suburban markets was 0.7% and 0.8% higher, respectively, than the previously fully escalated rents on the same office spaces.

On Wednesday, SL Green reported a trio of retail leases at two development projects it has under way. In partnership with the Moinian Group, the REIT signed CVS Caremark to a new 15-year lease for 21,159 square feet at 3 Columbus Circle, the 26-story office property formerly known as the Newsweek Building at 1775 Broadway. The CVS lease covers the vacant portion of the ground and a portion of the second floor at the newly redeveloped, 768,565-square-foot tower.

Downtown, Urban Outfitters signed a 15-year, three-floor, 21,653-square-foot lease and TD Bank inked a 20-year, 2,752-square-foot bank branch lease at 180 Broadway, a ground-up, mixed-use development owned by SL Green, Jeff Sutton and Harel Insurance. The retail leases bring 180 Broadway to 100% occupancy, with the balance of the property occupied by Pace University in a long-term condominium ground lease for student housing.

“We are proud to participate in the revitalization of Downtown Manhattan, and to announce the completion and stabilization of our first ground-up student housing property,” SL Green president Andrew Mathias says in a statement. “180 Broadway today is a model for cutting-edge design in student housing combined with modern retail space.”