SL Green Realty SLG recently announced closing on a modification and extension for the $742.8 million mortgage on 54-story office tower, 1515 Broadway. As a result, the maturity date has been extended by three years to March 2028, while the interest rate remains unchanged at 3.93%.

This strategic move enhances SL Green’s debt maturity profile. It offers SL Green and its partners the essential time and flexibility required to pursue projects like Caesars Palace Times Square. This project will bring the world-class entertainment at the heart of Times Square.

1515 Broadway is located in Times Square and is fully leased to Viacom. The company is pursuing a partnership with Caesars Entertainment and Roc Nation for the possible conversion of 1515 Broadway into a world-class entertainment destination. The effort aims to secure one of three gaming licenses expected to be awarded in downstate New York in 2025.

Moreover, despite the overall choppiness in the office real estate sector, SL Green is well-poised for growth, given tenants’ healthy demand for premier office spaces with class-apart amenities. Also, its long-term leases, with a diverse tenant base, assure stable rental revenues.

Shares of this Zacks Rank #3 (Hold) company have gained 50.9% over the past six months, outperforming the industry’s growth of 12.9%.

 

Image Source: Zacks Investment Research

 

Stocks to Consider

Some better-ranked stocks from the broader REIT sector are Welltower WELL and Cousins Properties CUZ, each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The Zacks Consensus Estimate for Welltower’s 2024 FFO per share is pinned at $4.26, suggesting year-over-year growth of 17%.

The Zacks Consensus Estimate for Cousins Properties’ 2024 FFO per share stands at $2.68, indicating an increase of 2.3% from the year-ago reported figure.

Note: Anything related to earnings presented in this write-up represents funds from operations (FFO), a widely used metric to gauge the performance of REITs.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Cousins Properties Incorporated (CUZ) : Free Stock Analysis Report

SL Green Realty Corporation (SLG) : Free Stock Analysis Report

Welltower Inc. (WELL) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research