Boston, MA 05/14/2014 (wallstreetpr) – SL Green Realty Corp (NYSE:SLG) is an $11 billion real estate investment trust (REIT). The company is the largest office landlord in New York. It also owns properties in many other prime locations.
Like in most other REITs, portfolio re-balancing has taken center-stage at SL Green. The company continues to give up properties in certain locations as it acquires promising and bigger ones amid strong demand in the real estate space.
The company’s portfolio and credit reputation puts it in good standing to secure favorable financing for its acquisitions. The favorable financing opportunities means that the company incurs little costs in repayment that in turn support saving.
As SL Green Realty Corp (NYSE:SLG) gives up on some assets in favor of the premier ones, it is also renovating its portfolio to attract high-dollar tenants or buyers. In the renovation and acquisition efforts, the company can be seen playing into the hands of tech companies that are in need of more office spaces for expansion.
In any case, the buzz in the technology sector has increased demand for office spaces and prices have also gone up significantly, leading to a combination of benefits for real estate companies.
Occupancy level
The strong demand for office spaces has significantly improved occupancy levels across the property portfolio of SL Green Realty Corp (NYSE:SLG). The company recently reported that its same-store properties enjoyed 95.6 percent occupancy at the end of 1Q, compared with 94.8 percent occupancy level a year earlier. The suburban properties enjoyed 81.2 percent occupancy level against 78.9 percent in the same period a year ago.
Property sales boost income
SL Green Realty Corp (NYSE:SLG) reported net income improvement in the latest quarter, a development that was attributed to the ongoing portfolio recycling. The company ended 1Q2014 with a profit of $146.1 million or $1.53 per share. That was a significant improvement from a net profit of $18.9 million or $0.21 per share. Revenue in the latest quarter also soared to $381.1 million, a 5.9 percent increase from a year ago.
