Analyst John Kim of BMO Capital maintained a Buy rating on SL Green Realty, retaining the price target of $76.00.
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John Kim’s rating is based on several positive developments for SL Green Realty in the second quarter of 2025. The company achieved a significant increase in funds from operations per share and raised its guidance, primarily due to a profitable debt investment. This investment involved a mortgage on a property at 522 Fifth Ave, which was repaid at a higher value after being acquired by Amazon. Additionally, SL Green’s leasing activity has been robust, with a notable year-to-date leasing volume and a strong pipeline, indicating healthy demand for their properties.
Despite some challenges, such as the unchanged year-end occupancy rate and a slight decline in Manhattan’s leased percentage, the company showed improvement in cash re-leasing spreads. The leasing of a substantial amount of square footage, including a significant lease with Sigma Computing, has contributed positively to their portfolio. These factors combined suggest a promising outlook for SL Green Realty, justifying the Buy rating given by John Kim.