SL Green Realty (SLG) AI Stock Analysis

• Market Cap: $3.93B
• Dividend Yield: 6.33%
• Average Volume (3M): 912.68K
• Price to Earnings (P/E): 662.3
• Beta (1Y): 1.94
• Revenue Growth: 5.12%
• EPS Growth: N/A
• Country: US
• Employees: 1,221
• Sector: Real Estate
• Sector Strength: 86
• Industry: REIT - Office
• EPS (TTM): 0.05
• Shares Outstanding: 71,004,560
• 10 Day Avg. Volume: 982,485
• 30 Day Avg. Volume: 912,678
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 4.60
• Price to Cash Flow (P/CF): 17.50
• P/FCF Ratio: 17.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $72.15
• Price Target Upside: 46.53% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 13

SL Green Realty's overall stock score reflects a mixed financial performance with low but stable leverage, decent operational efficiency, and concerns about revenue and cash flow. Despite positive sentiments from the earnings call and strategic corporate events, the high P/E ratio and bearish technical indicators weigh on the score.

Positive Factors

Financial Performance

SL Green Realty delivered better-than-expected results in 2024 and achieved several key objectives which keeps the company on offense in 2025.

Leasing Activity

SL Green has signed Manhattan office leases totaling 455,008 square feet, while maintaining a current pipeline of approximately 975,000 square feet.

Occupancy Rate

Occupancy rate improved to 92.5%, with expectations for further increase in the coming period.

Negative Factors

Interest Expenses

Core Net Operating Income was lower, and higher interest expenses were noted as negative offsets.

Leasing Costs

In the short-term, leasing is expensive and a drag on adjusted funds from operations.

Net Operating Income

Cash SS-NOI experienced a decline of 2.7% in the fourth quarter and 1.2% for the full year.

SL Green Realty Business Overview & Revenue Model

Company Description

SL Green Realty Corp., an S&P 500 company and Manhattan's largest office landlord, is a fully integrated real estate investment trust, or REIT, that is focused primarily on acquiring, managing and maximizing value of Manhattan commercial properties. As of December 31, 2020, SL Green held interests in 88 buildings totaling 38.2 million square feet. This included ownership interests in 28.6 million square feet of Manhattan buildings and 8.7 million square feet securing debt and preferred equity investments.

How the Company Makes Money

SL Green Realty Corp. generates revenue primarily through leasing office and retail spaces within its extensive property portfolio. The company earns rental income from long-term lease agreements with tenants, which are typically corporate entities seeking prestigious office locations in New York City. Additionally, SL Green may engage in property sales and joint ventures, which can provide capital gains and additional income streams. The company also invests in debt and preferred equity arrangements, generating interest income. These revenue streams are supported by SL Green's strategic acquisitions, property management expertise, and its ability to enhance property value through renovations and development projects.

SL Green Realty Financial Statement Overview

Summary

SL Green Realty exhibits mixed financial performance. While the company shows strong operational efficiency and a stable balance sheet with low leverage, declining revenues, low net profit margins, and negative free cash flow growth indicate challenges in profitability and cash flow management.

Income Statement

The revenue for SL Green Realty in the TTM period decreased by 1.44% compared to the previous year, indicating a slight decline. Gross Profit Margin is at 52.73%, reflecting a relatively healthy profitability level. However, the Net Profit Margin stands at a low 2.75%, suggesting weak bottom-line performance. EBIT and EBITDA margins are 27.05% and 54.88% respectively, indicating decent operational efficiency. Overall, while there are positive aspects in operational profitability, the revenue decline and low net profit margin are concerns.

Balance Sheet

The Debt-to-Equity Ratio is 0.23, which is relatively low, indicating prudent financial leverage. Return on Equity (ROE) is a modest 0.63%, reflecting low profitability relative to shareholder equity. The Equity Ratio is 37.79%, suggesting a stable capital structure. Overall, the balance sheet presents a stable financial position with low leverage, but improvement in profitability is needed.

Cash Flow

The Free Cash Flow to Net Income Ratio is negative, indicating challenges in converting income into cash flow. Operating Cash Flow to Net Income Ratio is 2.69, which shows strong cash flow generation relative to net income. However, the Free Cash Flow has significantly decreased compared to the previous year, highlighting potential cash flow management issues. Overall, cash flow generation is robust, but sustainability and growth are concerns.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
886.27M	913.71M	826.74M	843.99M	1.05B
	Gross Profit
758.09M	435.55M	487.50M	497.45M	664.19M
	EBIT
672.90M	-719.04M	112.63M	95.05M	161.25M
	EBITDA
409.61M	-206.38M	327.93M	311.92M	839.86M
	Net Income Common Stockholders
30.65M	-557.30M	-165.78M	457.06M	379.80M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
207.11M	231.41M	214.51M	286.17M	294.63M
	Total Assets
10.46B	9.53B	12.36B	11.07B	11.71B
	Total Debt
5.11B	4.42B	6.51B	4.97B	5.42B
	Net Debt
4.93B	4.20B	6.31B	4.72B	5.15B
	Total Liabilities
5.90B	5.27B	7.26B	5.75B	6.21B
	Stockholders Equity
3.95B	3.79B	4.76B	4.96B	4.91B
Cash Flow		Free Cash Flow
0.00	229.50M	-24.68M	-46.51M	96.10M
	Operating Cash Flow
0.00	229.50M	276.09M	255.98M	554.24M
	Investing Cash Flow
0.00	171.34M	425.81M	993.58M	1.06B
	Financing Cash Flow
-252.23M	-449.38M	-654.82M	-1.29B	-1.48B

SL Green Realty Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 49.24
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SLG, the sentiment is Negative. The current price of 49.24 is below the 20-day moving average (MA) of 55.37, below the 50-day MA of 59.78, and below the 200-day MA of 65.05, indicating a bearish trend. The MACD of -1.21 indicates Negative momentum. The RSI at 43.36 is Neutral, neither overbought nor oversold. The STOCH value of 34.55 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SLG.

SL Green Realty Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CUZ	68 Neutral	$4.53B	90.28	0.98%	4.75%	6.71%	-45.29%
KRC	65 Neutral	$3.69B	17.47	3.87%	6.99%	0.53%	-1.38%
Sector *	61 Neutral	$4.30B	16.20	-3.61%	11.22%	6.29%	-21.37%
PGRE	60 Neutral	$968.84M	―	-1.46%	3.44%	1.97%	82.20%
DEI	57 Neutral	$2.88B	107.18	1.03%	5.36%	-3.33%	―
HIW	55 Neutral	$2.90B	28.65	4.27%	7.43%	-0.98%	-32.02%
SLG	52 Neutral	$3.93B	662.34	0.71%	6.33%	5.12%	―

SL Green Realty Corporate Events

SL Green Realty Appoints Peggy Lamb as Independent Director

On March 19, 2025, SL Green Realty Corp. announced the appointment of Peggy Lamb as an Independent Director to its Board of Directors. Ms. Lamb brings over thirty years of experience in the real estate industry and currently serves as Managing Director of Halstatt, LLC. Her extensive background in managing complex global business environments is expected to bolster SL Green’s leadership in Manhattan’s office sector. This strategic addition to the board is anticipated to help the company leverage opportunities in the resurgent New York City market.

SL Green Realty Reports Strong Q4 2024 Financial Turnaround

SL Green Realty Corp. reported a significant turnaround in its financial results for the fourth quarter of 2024, achieving a net income of $0.13 per share compared to a net loss of $2.45 per share in the same period in 2023. The company’s funds from operations (FFO) also saw a substantial increase, reaching $1.81 per share, aided by gains from discounted debt extinguishment and fair value adjustments on derivatives. The company’s leasing activity was robust, with a 9.0% increase in mark-to-market rates for Manhattan office leases in the fourth quarter. Investments included the sale of an 11.0% interest in One Vanderbilt Avenue, generating significant proceeds, and acquisitions in prime Manhattan locations, further solidifying SL Green’s position in the market. Additionally, the company completed $5.3 billion in strategic debt refinancings and extensions, enhancing its financial flexibility.