Jana Galan, an analyst from Bank of America Securities, reiterated the Hold rating on SL Green Realty. The associated price target was lowered to $61.00.
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Jana Galan has given her Hold rating due to a combination of factors impacting SL Green Realty’s financial outlook. The company’s third-quarter results for 2025 fell short of both Bank of America and market expectations, leading to a downward revision of the full-year funds from operations (FFO) guidance. This was primarily due to unexpected expenses, including higher interest costs and expensed casino costs, which offset some positive debt extinguishment outcomes.
Despite these challenges, SL Green Realty has shown strength in its leasing activities, achieving significant square footage in new leases and maintaining a high occupancy rate. However, leasing spreads were slightly negative, and the market is experiencing increased concessions. The company has been active in capital recycling, including the sale of a stake in One Vanderbilt and the purchase of Park Avenue Tower, which could provide long-term benefits. Nonetheless, the current valuation and financial pressures justify maintaining a Neutral stance with a price objective of $61 per share.
In another report released yesterday, Morgan Stanley also maintained a Hold rating on the stock with a $52.00 price target.