SL Green Gives 2017 FFO Outlook, Expands Nordstrom Lease

SL Green Realty Corp. (NYSE:SLG) expects its 2017 funds from operations (FFO) per share to range between $6.40 and $6.50. Further, this New York-based retail real estate investment trust (“REIT”) has affirmed its previously announced 2016 FFO per share guidance of $8.17–$8.25 in the 2016 Annual Investor Conference. The Zacks Consensus Estimate for 2017 FFO per share is currently pegged at $6.27 and the 2016 estimate for the same is $8.31.

In another press release, SL green and The Moinian Group declared that fashion specialty retailer, Nordstrom (NYSE:JWN) is enhancing its future Men's store at 3 Columbus Circle. The expansion is by an additional 3,973 square feet, which is leading to its total leased space tally at the location to 46,991 square feet.

The move reflects the importance of the 3 Columbus Circle's locality. In fact, Nordstrom will now enjoy occupancy of the building's complete Broadway retail frontage, with corners of the 57th and 58th Street and its flagship space at 225 West 57th Street.

With this lease, SL Green has executed 32 retail leases year to date, aggregating 310,534 square feet of space. This has helped the company make over $70 million of rental revenue.

Moreover, recently, SL Green, in association with its partner Jeff Sutton, inked a long-term lease with Shoes and Retail Apparel industry major, NIKE, Inc. (NYSE:NKE) at 650 Fifth Avenue. This 15-year lease is likely to be accretive for the REIT, going forward.

Currently, SL Green carries a Zacks Rank #3 (Hold). For the current year, SL Green’s estimates inched up 0.2% to $8.31 per share, over the past 30 days. Quarter to date, shares of SL Green moved up 0.1%, whereas the Zacks categorized REIT and Equity Trust – Other industry declined 7.2%.



Investors interested in the REIT industry can consider another stock – Mack-Cali Realty Corp. (NYSE:CLI) – which has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Mack-Cali has long-term expected growth rate of 6.6% against the industry average of 5.8%.

Note: All EPS numbers presented in this write up represent funds from operations (“FFO”) per share. FFO, a widely used metric to gauge the performance of REITs, is obtained after adding depreciation and amortization and other non-cash expenses to net income.

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