FBR Capital Maintains a 'Market Perform' on SL Green Realty (SLG); Raising Price Target on Fundamentals, 280 Park
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Price: $57.45 -1.12%
Rating Summary:
14 Buy, 16 Hold, 1 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
14 Buy, 16 Hold, 1 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
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FBR Capital maintains a 'Market Perform' on SL Green Realty (NYSE: SLG), PT increased from $79 to $89.
FBR analyst says, "The change in price target is primarily due to (1) increased pro-rata real estate value due to higher cap rates on the minority interest NOI as well as higher NOI due to betterthan-expected occupancy gains, (2) minimal losses from book value assumed in the structured finance portfolio, versus our prior assumption of about $150 million in losses and (3) increased premium to NAV of 15% from 12% justified by recent SL Green transactions. We are also revising our forward FFO estimates higher to reflect the gains realized in the first quarter as well as a slightly increased Manhattan fundamental outlook going forward. However, we maintain that valuation remains full, as the current 4.7% implied cap rate compares to our applied cap rate of 5.0%, which is derived from an 8.4% unlevered IRR hurdle."
"We are revising our 2011, 2012, and 2013 FFO per share estimates to $4.76, $4.36, and $4.56 from $4.19, $4.32, and $4.44 respectively, and are also introducing our 2014 FFO per share estimate of $4.92."
For more ratings news on SL Green Realty click here and for the rating history of SL Green Realty click here.
Shares of SL Green Realty closed at $86.01 yesterday.
FBR analyst says, "The change in price target is primarily due to (1) increased pro-rata real estate value due to higher cap rates on the minority interest NOI as well as higher NOI due to betterthan-expected occupancy gains, (2) minimal losses from book value assumed in the structured finance portfolio, versus our prior assumption of about $150 million in losses and (3) increased premium to NAV of 15% from 12% justified by recent SL Green transactions. We are also revising our forward FFO estimates higher to reflect the gains realized in the first quarter as well as a slightly increased Manhattan fundamental outlook going forward. However, we maintain that valuation remains full, as the current 4.7% implied cap rate compares to our applied cap rate of 5.0%, which is derived from an 8.4% unlevered IRR hurdle."
"We are revising our 2011, 2012, and 2013 FFO per share estimates to $4.76, $4.36, and $4.56 from $4.19, $4.32, and $4.44 respectively, and are also introducing our 2014 FFO per share estimate of $4.92."
For more ratings news on SL Green Realty click here and for the rating history of SL Green Realty click here.
Shares of SL Green Realty closed at $86.01 yesterday.
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