As part of its efforts to expand its retail investment
SL Green Realty Corp.
) acquired interest in 650 Fifth Avenue through a joint venture.
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In particular, SL Green formed a venture along with its partner
Jeff Sutton and purchased a 49-year leasehold interest
encompassing the whole retail section of 650 Fifth Avenue.
Notably, the deal, accomplished with the earlier U.S. Magistrate
Judge Kathleen A. Roberts, the federal monitor and interim
trustee of the landlord, 650 Fifth Avenue Company, offers SL
Green significant prospects to solidify its partnership position
in the renowned Fifth Avenue luxury retail corridor.
The company already has its presence in this region. SL Green
along with Sutton enjoys control over the 717 Fifth Avenue
property, featuring the Giorgio Armani and Dolce & Gabbana
flagships, 720 Fifth Avenue that houses retailer
Abercrombie & Fitch Co.
) and 724 Fifth Avenue that has Prada's flagship store.
SL Green is further seeking to tab opportunities in New York
City's premium retail locations with its retail investments
favorably complementing its core office and structured finance
We believe that this diversification of investments in retail
properties would offer SL Green sufficient growth prospects going
forward. As a matter of fact, this real estate investment trust
(REIT) reported encouraging third-quarter 2013 results last month
with an earnings surprise of 4.69%.
Particularly, its funds from operations (FFO) of $1.34 per share
were 19.6% ahead of the prior-year quarter figure. The results
came on the back of better-than-expected revenue growth. The
company also hiked its dividend by 52% to 50 cents from 33 cents
in the prior quarter and raised its 2013 FFO per share outlook.
SL Green currently has a Zacks Rank #3 (Hold). Some better
performing REITs include
Chatham Lodging Trust
Getty Realty Corp.
). Both these stocks hold a Zacks Rank #1 (Strong Buy).
Funds from operations, a widely accepted and reported measure
of REITs performance, are derived by adding depreciation,
amortization and other non-cash expenses to net income.