SL GREEN TO BUY MORE

NYC was the epicenter of REIT activity yesterday. We joined over 100 REITs, their execs, and 1,900 attendees to hear the latest at NAREIT’s annual REITWeek.
SL Green's recent $135M buy of 304 Park Ave South starts what will be a pipeline of new purchases in the second half of ‘12, says SL Green CEO Marc Holliday, with prez Andrew Mathias. In the meantime, the REIT has been spending a “disproportionate” amount of time leasing up and repositioning its acquisitions from the past three years. We’re in a balanced market of 9% vacancy, which means landlords have to compete for tenants, yet tenants have to compete for good space, he says. (Everyone's s getting into the Olympic spirit.) Out of SL Green’s 1,100 tenants in Manhattan, most are doing well, although most deals are renewals or renewal-expansions.

General Growth Properties (owner of the Staten Island Mall) continues to hone its focus on Class-A regional malls (which account for 80% of its income), disposing of $2.5B and over 30M SF of Class-B malls, strip centers, and office space in 2011, says CEO Sandeep Mathrani. Now it’s all about leasing—it has 86% permanent occupancy, with a stabilization goal of 92% by 2014. It’s also started $450M of redevelopment this year. All types of retailers are expanding footprints or number of stores, particularly international ones like Zara, Topshop, H&M, and Uniqlo. GGP will continue shedding office and strip space, and plans to let go of eight to 10 non-core malls while growing its Brazilian platform. More from the REITs further down.

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