NEW YORK CITY—Citigroup has exercised its option to buy back 388-390 Greenwich St. from SL Green for $2 billion. Current owner SL Green, a REIT and the city's largest office landlord, revealed the purchase Wednesday in its fourth quarter earnings announcement.
Citi is headquartered in the 2.6-million-square-foot property, which is triple-net leased an affiliate of Citigroup through 2035, under an extension that was announced in December 2013. The agreement with Citi includes an option for the banking concern to acquire the building during the period from December 1, 2017 through December 31, 2020.
SL Green and an affiliate of Ivanhoe Cambridge together acquired the property in late 2007 but the former company became the landlord in March 2014 when it purchased Ivanhoe's 49% stake. At that time, the Lower Manhattan office tower was valued at $1.6 billion.
Also in the fourth quarter,SL Green signed 44 Manhattan office leases covering 416,198 square feet during the fourth quarter and 189 Manhattan office leases covering 2,255,733 square feet throughout 2015. On the financial front in Q4, the REIT achieved FFO of $1.62 per share before transaction related costs of $0.01 per share, compared to fourth quarter 2014 FFO of $1.45 per share before transaction related costs of $0.02 per share.
Full year 2015 FFO was $6.49 per share before transaction related costs of $0.11 per share, compared to the full year 2014 FFO of $5.94 per share before transaction related costs of $0.09 per share. Fourth quarter 2015 net income attributable to common stockholders of $1.01 per share was realized, compared to fourth quarter 2014 net income attributable to common stockholders of $0.59 per share. Full year net income attributable to common stockholders was $2.70 per share, compared to prior year net income of $5.23 per share.
Additionally, combined same-store cash NOI increased 5% for the fourth quarter and 4.6% for the full year, as compared to the same periods in 2014.
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Rayna Katz
Rayna Katz is a seasoned business journalist whose extensive experience includes coverage of the lodging sector, travel and the culinary space. She was most recently content director for a business-to-business publisher, overseeing four publications. While at Meeting News, a travel trade publication, she received a Best Reporting award for a story on meeting cancellations in New Orleans during Hurricane Katrina.
