Commercial real estate continues to eat dirt. SL Green Realty (SLG), a REIT owning 22 million square feet of mostly Manhattan office properties, is down $1.53, or 3.2% despite the company’s projecting earnings next year higher than expected.
Funds from operations next year, which equates roughly to Ebitda, will be in a range of $3.90 to $4.10, which at the midpoint is higher than the $3.93 analysts have been expecting. For this year, the company reaffirmed its forecast previously offered, of $4.35 to $4.50, which at the midpoint is below the $4.47 expected.
I would note that the actual net income per share for 2010 is expected to be from 43 cents to 63 cents, which, at the midpoint, is below the average 54-cent estimate. So, clearly some charges will be preventing the company from delivering the leverage some might expect. SLG shares are up over 78% this year.
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