NEW YORK (Reuters) - SL Green Realty Corp (SLG.N), which mainly owns office buildings in Manhattan and its suburbs, on Wednesday reported better-than-expected third-quarter funds from operations, a key earnings measure, and raised its dividend and forecast for the year.
SL Green’s results reflect the very slow recovery of the midtown Manhattan office market, where rent and vacancy rates follow demand from the financial services sector.
The company said funds from operations in the third quarter were $127.4 million, or $1.34 per share, compared with $104.8 million, or $1.12 per share, in the year earlier quarter. The third-quarter 2013 FFO includes a non-cash $6.9 million, or 7 cents a-share charge related to a former tenant.
Analysts on average expected SL Green to post third-quarter FFO of $1.28 per share, according to Thomson Reuters I/B/E/S.
Funds from operations, or FFO, is a real estate investment trust performance measure that usually excludes gains or losses from property sales and removes the effect depreciation has on earnings.
The company raised its outlook for the year to FFO in the range of $5.12 to $5.16 per share from $4.90 to $5.00 per share.
Analysts had forecast $5.03 per share.
SL Green also raised its annual dividend to $2.00 per share from $1.32 per share beginning in the fourth quarter.
Reporting by Ilaina Jonas. Editing by Andre Grenon