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Stephen Green’s New York based SL Green Realty Corporation has been making a number of moves lately which have clearly had a positive impact on the firm’s bottom line as Deutsche Bank (SLG) has given it a buy rating.
The firm recently spent $282.4 million to acquire the land rights underneath several Manhattan retail and residential buildings that it owns in partnership with Jeff Sutton and Stonehenge Partners. This according to a report in The Real Deal.
Control of the land underneath the buildings will enable SL Green to redevelop the properties in one of Manhattan’s most valuable locations.
The properties are adjacent to one another, at the corner of Madison Ave and East 65st Street. Completed in 1996, 760 Madison Avenue is a four story forty five foot high low rise building that is currently home to an Armani store. The clothing company hold a lease through 2025 for the building’s 16, 468 square feet of retail space.
Stonehenge leases the residential units on 65th Street in a building called the Stonehenge Mews.
The company has at the same time been bringing in huge windfalls from the divestment of other Manhattan properties. SL Green brought in $365 million for the leased fee interest in the 2 Herald Square 365, 000 square foot commercial office building which it sold to TIAA-CREF, a retirement investment firm.
It also sold 180 Broadway to the LeFrak Organization and 985-987 Third Avenue.
SL Green has also announced this week that two of the office buildings which it is retaining, 110 East 42nd Street opposite Grand Central Station and 635 Sixth Ave are both fully leased.
As a result of all of this Deutsche Bank predicts that SL Green’s stock will rise to $121. That’s a lot better than the $112 per share predicted by Barclays. A number other investment brokers also see its stock going up.
SL Green’s shares have a 52 week high of $112.94 and almost broke $110 this week. The company has a market cap of $10.464 billion and a price to earnings ratio of 23.10. It reported a reported $1.64 earnings per share for the previous quarter beating the projections made by analysts.
Founded in 1997, SL Green Realty is a is a self-managed real estate investment trust which handles property management, acquisitions, financing, development, construction and leasing.