NEW YORK - SL Green Realty Corp. (NYSE:SLG), a major real estate investment trust (REIT) and the largest office landlord in Manhattan, has declared a monthly dividend of $0.25 per share of common stock. This announcement, made today, translates to an annualized payout of $3.00 per share. The upcoming dividend is scheduled to be distributed on October 15, 2024, to shareholders who are on record as of the close of business on September 30, 2024.
In addition to the common stock dividend, SL Green's board of directors has also announced a regular quarterly dividend for the Series I Preferred Stock. The amount declared is $0.40625 per share for the period spanning from July 15, 2024, to October 14, 2024, which is equivalent to an annualized dividend of $1.625 per share. Similar to the common stock dividend, the preferred stock dividend is payable on October 15, 2024, to shareholders of record as of September 30, 2024.
SL Green specializes in acquiring, managing, and optimizing the value of commercial properties in Manhattan. As of June 30, 2024, the company holds interests in 55 buildings totaling approximately 31.8 million square feet. This portfolio includes ownership interests in 28.1 million square feet of commercial spaces in Manhattan and 2.8 million square feet in secured debt and preferred equity investments.
The press release also contains forward-looking statements regarding the company's anticipated activities, events, and developments such as capital expenditures, dividends, and acquisitions. These statements are based on the company's current expectations and are subject to risks and uncertainties that may cause actual results to differ materially.
Investors are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of the press release. The company undertakes no obligation to publicly update or revise any forward-looking statements in the event of new information or future events, except as required by law.
This dividend announcement and the forward-looking statements are based on information provided by SL Green Realty Corp. in a recent press release statement.
In other recent news, SL Green Realty Corp has been the subject of several recent developments. The company reported funds from operations (FFO) per share of $1.34, surpassing BofA Securities' normalized FFO estimate by 9%. BMO Capital Markets, Piper Sandler, Truist Securities, and BofA Securities have all updated their price targets for SL Green Realty, reflecting the company's improved performance in the office leasing sector and potential earnings.
Analysts from Scotiabank upgraded SL Green Realty's stock from Sector Underperform to Sector Perform, indicating optimism for the company's continued leasing success. However, Jefferies and Goldman Sachs adjusted their outlooks due to concerns over the company's financial performance.
SL Green Realty has also been focusing on reducing debt by over $1 billion and launching a $1 billion debt fund focused on New York City. The company's strategic approach to managing its real estate portfolio includes the conversion of 750 Third Avenue into residential use. These developments highlight SL Green Realty's ongoing efforts to enhance its financial performance and leasing pipeline.
InvestingPro Insights
As SL Green Realty Corp. (NYSE:SLG) continues to navigate the dynamic real estate market in Manhattan, the company's financial health and stock performance are key indicators for investors. According to InvestingPro data, SL Green's market capitalization stands at $4.98 billion, reflecting its significant presence in the industry. Despite a challenging environment that has seen a revenue decline of 4.54% in the last twelve months as of Q2 2024, the company has maintained a gross profit margin of 52.29%, showcasing its ability to manage costs effectively.
Investors looking at the stock's performance will note that SL Green has experienced a strong return over the past year, with an 88.18% price total return. This bullish trend is also evident in the shorter term, with a 27.06% return over the last three months and a remarkable 43.45% in the past six months. The price of SL Green's stock is currently trading near its 52-week high, at 97.62% of the peak value. This could indicate investor confidence in the company's future prospects or a broader market trend favoring real estate investments.
One of the InvestingPro Tips highlights that SL Green has maintained dividend payments for 28 consecutive years, a testament to its commitment to shareholder returns even amidst market fluctuations. Another tip to consider is that analysts do not anticipate the company will be profitable this year, which may be a point of concern for long-term investors. However, the company's ability to sustain dividend payments despite this outlook could be a sign of strong financial discipline and resource allocation.
For those interested in a deeper analysis of SL Green's financial health and stock performance, InvestingPro offers additional tips and insights. There are 10 more InvestingPro Tips available for SL Green, providing a comprehensive overview of the company's financial metrics and market expectations. Access to these tips can be found at https://www.investing.com/pro/SLG, offering valuable information for making informed investment decisions.
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