SL Green Nets $387M in Stock Offering

NEW YORK CITY-SL Green Realty Corp.’s previously announced stock offering has yielded net proceeds of approximately $387.4 million, the office REIT said on Monday. The proceeds were larger by about $50.6 million than SL Green’s initial estimate of $336.8 million.

Proceeds from the offering of 19.55 million common shares at $20.75 per share, including 2.55 million shares issued to the underwriters to cover overallotments, will be used for general corporate and/or working capital purposes, according to a release. These may include “investment opportunities, purchases of the indebtedness of its subsidiaries in the open market from time to time, and the repayment of indebtedness at the applicable maturity or put date,” the release states.

In an SEC filing, SL Green said the stock offering would have a dilutive effect of $4.35 to $4.50 per diluted share on its previously announced full-year forecast for funds from operations. Merrill Lynch & Co., Morgan Stanley, Deutsche Bank Securities, Citi, Goldman Sachs and JPMorgan Chase acted as the joint book-running managers.

As previously reported on GlobeSt.com, first-quarter revenues for SL Green were up 3.9% year-over-year to $263.4 million, although the office REIT’s EBIDTA of $143.8 million was off by 6.6% compared to Q1 2008. Its Q1 FFO was up 8.8% to $88.1 million, or $1.48 per share, over Q1 ’08′s $1.36, while net income was $32.1 million for the quarter compared to $121.1 million a year earlier.

As of March 31, SL Green owned interests in 29 New York City office properties totaling approximately 23.2 million square feet. Additionally, the company has investment interests in eight retail properties encompassing approximately 400,212 square feet, three development properties encompassing approximately 399,800 square feet and two land interests, along with ownership interests in 32 suburban assets totaling 6.9 million square feet in Brooklyn, Queens, Long Island, Westchester County, Connecticut and New Jersey.

Last week, SL Green secured what is reportedly the largest relocation lease in Manhattan thus far this year, as accounting firm Marcus & Kliegman LLP moved from 655 Third Ave. to 67,152 square feet at the recently renovated 750 Third Ave. SL Green will build out the entire 11th and 12th floors of the 34-story office tower in a turn-key installation for Marcum & Kliegman.