SL Green Realty Corp., a real estate investment trust, reported a decrease in its funds from operations, primarily due to reduced revenue and higher non-recurring administrative costs. For the fourth quarter, funds from operations dropped to $49.7 million, or $0.72 per share, down from last year's $100 million, or $1.46 per share.
The company also experienced a widening loss for the same quarter, escalating to $155.6 million or $2.45 per share, compared to $64.3 million or $1.01 per share the previous year. This was largely due to increased depreciable real estate reserves and other fair value adjustments. Market analysts on average had predicted a loss of $0.88 per share for the period.
Revenue slipped to $211.7 million from $250.7 million, attributed mainly to diminished investment income and rental revenue. In particular, investment income fell to $6.8 million from $11.3 million in the previous year, while rental revenue dropped to $131.9 million from last year's $172.9 million.
However, the company's outlook for fiscal year 2024 shows anticipated funds from operations to range between $5.90 and $6.20, marking an increase from the previous forecast of $4.90 to $5.20. Furthermore, the corporation has indicated an expected rise in earnings per share for the fiscal year, projecting a range of $2.73 to $3.03, from the previous $1.35 to $1.65.
In aftermarket trading, SL Green Realty's stock climbed 0.96 percent to $46.05 on the New York Stock Exchange.
