Manhattan commercial real estate leasing posted another solid quarter at the end of June, with rising asking prices for office space and availability in decline, Colliers International said on
Sourced through Scoop.it from: www.reuters.com
Three New York REITs saw increases in occupancy and releasing spreads during 2015’s second quarter. These three particular REITs are New York REIT (NYSE:NYRT), Empire State Realty Trust (NYSE:ESRT), and SL Green Realty Corporation (NYSE:SLG).
New York REIT
Since the first quarter of 2015, occupancy rose two whole percentage points. This makes current portfolio occupancy 97.2 percent. New York REIT has a total of 3.3 million rentable square feet. Ninety-six percent of that square footage is in Manhattan.
Strong internal growth is evident through the gain in same-store cash NOI excluding hotel business. This year-over-year growth is 12 percent. Re-leasing spreads on a cash basis have risen 30 percent.
There has been a year-over-year 8 percent increase for core FFO per fully diluted share. Year-over-year AFFO has also improved by 9 percent. Payout ratios for both core FFO and AFFO are 83 percent and 94 percent, respectively. Dividends, however, have remained the same since their 2014 IPO.
Empire State Realty Trust
Occupancy climbed 40 basis points to 88 percent from the first quarter. There has been a strong interest in Manhattan office properties; the company saw new lease signings spreads of 56 percent.
Although the core FFO per share gained 13 percent, the dividend rate is still the same from last year and dividend payout ratio is now at 33 percent.
The Manhattan and New York City metro areas make up the office and retail real estate portfolio of ESRT. Office properties in Manhattan total about 8 million square feet of rentable space. Manhattan makes up more that 80 percent of their total portfolio and has an occupancy rate of 86.4 percent.
SL Green Realty
Same-store occupancy for Manhattan soared 110 basis points in the second quarter over first quarter results. Replacement leases surpassed previous rates on the same offices by 11.3 percent. FFO per share was flat.
SL Green Realty, which is New York City’s largest office landlord, focuses on commercial real estate in Manhattan. They have ownership interests in 120 Manhattan buildings covering over 44.1 million square feet.