UPDATE 2-SL Green fourth-quarter FFO up 12.4 pct

* FFO of 87 cts/shr trails estimates by a penny

* Revenue down 8.3 pct but tops Street view

NEW YORK, Jan 25 (BestGrowthStock) – New York office landlord SL
Green Realty Corp (SLG.N: ) reported fourth-quarter funds from
operations that rose 12.4 percent, helped by the signing of 53
new office leases, but missed Wall Street estimates by a
penny.

The company, which owns property in New York City and its
suburbs, on Monday posted funds from operations (FFO) of $69.1
million for the quarter ended on Dec. 31, up from $61.5 million
in the year-ago period.

The company had FFO of 87 cents per share for the quarter,
down from $1.03 per share in the year-earlier quarter.

Analysts had forecast FFO of 88 cents per share, according
to Thomson Reuters I/B/E/S.

FFO, a performance metric, removes the profit-reducing
effect of depreciation, a noncash accounting item.

Quarterly revenue fell 8.3 percent to $246.6 million, but
topped analysts’ forecast of $234.9 million, according to
Thomson Reuters I/B/E/S.

SL Green said it signed 24 office leases in Manhattan and
29 office leases in the suburbs during the fourth quarter.

The U.S. commercial real estate market is in its worst
slump since the early 1990s, with values, rents and occupancies
falling. In Manhattan, the vacancy rate has hovered just north
of 11 percent in the past two quarters, according to commercial
real estate services company CB Richard Ellis.

Occupancy at SL Green’s Manhattan buildings was 95 percent
at the end of the quarter, SL Green said. The average lease
term was 8.4 years and average tenant concessions were 1.7
months of free rent with improvements for space running the
company about $14.36 per square foot.

For properties the company has operated for more than a
year, net operating income, which gauges the amount of cash the
properties generate after expenses, rose 4.2 percent in the
quarter.

Before the earnings were released, SL Green shares closed
down 8 cents, or 0.2 percent, at $45.92 on the New York Stock
Exchange. Through Monday’s close, the shares are down 14.6
percent from a 52-week high of $53.74 they touched on Dec. 28.

Stock Market Trading

(Reporting by Martinne Geller; additional reporting by Ilaina
Jonas; Editing by Carol Bishopric, Gary Hill)

UPDATE 2-SL Green fourth-quarter FFO up 12.4 pct