SL Green Provides Update on Key Initiatives
Company announces completion of “$1.0 Billion Plan,” further asset sales, May collections and plans to safely welcome tenants back to office buildings
“Despite the challenges created by the Covid-19 crisis, I’m very pleased with the performance of the Company throughout the last several months. Our collections have held up well as a result of our high quality, long dated and creditworthy rent roll, and we have amassed a substantial amount of cash liquidity in a short period of time, which is the reflection of the hard work of our employees and the resiliency of the
In conjunction with this announcement and REITWEEK, NAREIT’s investor forum on
Key transactions: Since April, SL Green has closed, or placed under contract, dispositions and joint ventures totaling
Closed on the sale of the unencumbered retail condominium at
609 5th Avenuefor total consideration of $168.0 million,
Sold a 49.5% joint venture interest in
One Madison Avenueto the National Pension Serviceof Koreaand Hines Interest, LP, which have committed aggregate equity to the project of no less than $492.2 million, and
$485.1 millionof cash from the debt and preferred equity (“DPE”) portfolio through the sale of five DPE positions totaling $259.1 millionof proceeds at an average price of 99.5% of book value and repayments totaling $226.0 millionof proceeds. A portion of the proceeds from these activities was used to repay the Company’s DPE financing facility in its entirety.
“$1.0 Billion Plan” achieved ahead of schedule, allowing share repurchases to resume: In April, SL Green announced the creation of its “$1 Billion Dollar Plan” to amass at least
May Collections: Throughout the COVID-19 pandemic, SL Green has collected the vast majority of its property billings, reflecting the credit-quality of the company’s office and retail tenants. April collections have now reached 95.1% for office, 63.3% for retail and 89.1% overall, up from 91.8%, 60.0% and 85.7%, respectively, as of
To date, May collections are on a similar trajectory to April with collections of 91.1% for office, 54.7% for retail and 84.7% overall. The Company expects May collections to increase further during June as some tenants are taking longer to make payments than they have historically.
Construction projects moving forward: SL Green continues to make significant progress on the Company’s development and redevelopment projects, including its most prominent project, the 1.7 million square foot, 1,401 foot tall
SL Green plans for safe return to offices: The Company is implementing its “SLG Forward” initiative, a comprehensive approach to providing a safe and welcoming environment to all tenants, visitors and employees. The plan includes a significant financial investment by the Company to provide enhancements to every property’s environment, infrastructure, procedures, technology, cleaning and air filtration in response to COVID-19.
SL Green gives back to NYC through Food1st: With the formation of “Food1st”, a non-profit foundation, SL Green has helped deliver over 100,000 meals daily to front-line, first responders and medical personnel, elderly New Yorkers and food insecure families. In addition to addressing the increasing demand for food assistance across
About SL Green
Forward Looking Statements
This press release includes certain statements that may be deemed to be “forward-looking statements”. All statements, other than statements of historical facts, included in this press release that address activities, events or developments that we expect, believe or anticipate will or may occur in the future, are forward-looking statements. Forward-looking statements are not guarantees of future performance and we caution you not to place undue reliance on such statements. Forward-looking statements are generally identifiable by the use of the words “may,” “will,” “should,” “expect,” “anticipate,” “estimate,” “believe,” “intend,” “project,” “continue,” or the negative of these words, or other similar words or terms.
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SLG – GEN
Chief Financial Officer