Revenues and EBITDA for Q1 stood at $258.6 million and $143.5 million, respectively, compared to $262.4 million and $143.4 million for Q1 '09. Net income for the quarter totaled $0.19 per share, compared to net income of $0.57 per share in the same period the year prior.
Excluding 100 Church, occupancy for SL Green's Manhattan portfolio stood at 94% as of the end of March. The inclusion of 100 Church brings the overall rate down to 91.9%. Occupancy in the suburban portfolio was 88.1% at the end of the quarter.
The REIT signed or commenced 47 Manhattan offices leases totaling more than 500,000 square feet during Q1, and a total of 58 leases across the Manhattan portfolio. These were highlighted by New York Life's early renewal for 87,944 square feet at 420 Lexington Ave. and new leases with Jones Day at 220 E. 42d St. and Jobre & Kim, LLP at 800 Third Ave., for 44,034 square feet and 40,020 square feet, respectively.
In the suburban portfolio, SL Green's leasing activity was highlighted by an early renewal with Stancorp Financial Group for approximately 33,771 square feet at 360 Hamilton Avenue in White Plains and an early renewal with Kaufman Borgeest & Ryan for about 24,743 square feet at 200 Summit Lake Dr. in Valhalla, NY.
The average starting rent in the Manhattan portfolio was $45 per square foot, the average lease term was 9.1 years and average tenant concessions were 5.5 months of free rent with a tenant improvement allowance of $28.31 per rentable square foot, according to the REIT's earnings report.
During Q1, SL Green also focused on fundraising. It completed an underwritten public offering of 5.4 million shares of preferred stock at $23.53 per share. Net proceeds were approximately $122.1 million. The REIT also completed its initial unsecured note issuance with an offering of $250 million in 7.75% senior unsecured notes due March 15, 2020 through its Reckson Operating Partnership subsidiary. Proceeds were used to fund a tender offer to buy back its debt, through which SL Green purchased $115 million in senior notes.
Additionally, the REIT extended the maturity date of the 16 Court St. mortgage and construction loans to October 2013. The loans on the Brooklyn office property have a one-year extension option.
The first quarter also saw SL Green originate or purchase five new structured finance investments for approximately $80.7 million, all of which are collateralized by Manhattan real estate. In all, the company's structured finance investments totaled approximately $786.1 million at the end of March, an increase of approximately $1.5 million from the balance at the end of Q4 '09.
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Paul Bubny
Paul Bubny is managing editor of Real Estate Forum and GlobeSt.com. He has been reporting on business since 1988 and on commercial real estate since 2007. He is based at ALM Real Estate Media Group's offices in New York City.
