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SL Green Realty reported a third-quarter net income of USD 0.34 per share, outperforming analyst expectations of a loss. Funds from operations increased to USD 1.58 per share from USD 1.13 last year, driven by active leasing in Manhattan offices. The company signed 52 leases totaling nearly 658,000 sq ft, boosting occupancy and indicating steady demand. SL Green also entered a contract to acquire Park Avenue Tower for USD 730 million, expected to close in early 2026. While same-store cash NOI fell 4.2% due to lower percentage rent from One Vanderbilt, the company anticipates Manhattan office occupancy to reach 93.2% by year-end.
SL Green Realty reported net income of USD 0.34 per share for the third quarter, exceeding analysts' estimates of a USD 0.21 per share loss. Total net income stood at USD 24.90 million, compared with a consensus expectation of an USD 8.73 million loss. Funds from operations rose to USD 1.58 per share, up from USD 1.13 in the same quarter of 2024, reflecting stronger leasing activity and efficient property management. Advertisement
Leasing played a key role in the company's performance. During the quarter, SL Green signed 52 Manhattan office leases covering 657,942 sq ft. This contributed to increased occupancy levels and underscores the ongoing demand for premium office spaces in Manhattan. The company expects overall Manhattan office occupancy to reach 93.2% by the end of 2025, signaling confidence in the local office market.
On the investment front, SL Green entered a contract to purchase Park Avenue Tower for USD 730 million, with the transaction expected to close in the first quarter of 2026. The acquisition aligns with the company's strategy to strengthen its Manhattan portfolio and expand its presence in prime locations.
Despite these positive developments, same-store cash net operating income declined by 4.2% during the quarter. This drop was partly attributed to lower percentage rent from One Vanderbilt. Analysts currently maintain a positive view on the stock, with an average rating of "buy." Wall Street's median 12-month price target for SL Green is USD 63.50, about 11.8% above its mid-October closing price of USD 56.03. Among the commercial REIT peer group, the consensus recommendation is also "buy."
Source Reuters
5th Jun, 2025
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