SL Green Realty (SLG) AI Stock Analysis

• Market Cap: $3.97B
• Dividend Yield: 5.72%
• Average Volume (3M): 1.00M
• Price to Earnings (P/E): 663.1
• Beta (1Y): 1.70
• Revenue Growth: 13.36%
• EPS Growth: 94.82%
• Country: US
• Employees: 1,221
• Sector: Real Estate
• Sector Strength: 83
• Industry: REIT - Office
• EPS (TTM): -0.43
• Shares Outstanding: 71,016,820
• 10 Day Avg. Volume: 1,006,055
• 30 Day Avg. Volume: 1,003,720
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 2.70
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 14.16
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $66.64
• Price Target Upside: 26.67% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 11

SL Green Realty's overall score is weighed down by mixed financial performance, bearish technical indicators, and challenging valuation metrics. Despite positive sentiments from recent earnings calls and strategic corporate events, the company's current financial challenges and market conditions present risks.

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's leasing pipeline grew to 1.1 million square feet compared to 974k square feet in early March, showing robust leasing activity.

Negative Factors

Economic Conditions

A potentially weakening economy is already negatively impacting stock valuation.

Interest Expense

Lowering 2026 normalized FFO estimate, largely due to higher projected interest expense and adjustments to more accurately reflect consolidation of 100 Park Avenue.

Operating Results

Clean' FFO came in below expectations, and operating results slipped sequentially with a lower leased rate and weaker economics.

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 strong operational efficiency with decent EBIT and EBITDA margins and a stable balance sheet with low leverage. However, challenges include declining revenues, low net profit margins, and negative free cash flow growth, indicating areas needing strategic improvement.

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
138.97M	-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: 52.61
• 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 52.61 is above the 20-day moving average (MA) of 51.98, below the 50-day MA of 56.61, and below the 200-day MA of 64.61, indicating a neutral trend. The MACD of -0.91 indicates Negative momentum. The RSI at 45.68 is Neutral, neither overbought nor oversold. The STOCH value of 53.71 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	$4.69B	93.53	0.98%	4.67%	6.71%	-45.29%
PGRE	65 Neutral	$1.02B	―	-1.46%	3.23%	1.97%	82.20%
KRC	64 Neutral	$3.76B	17.81	3.87%	6.80%	0.53%	-1.38%
HIW	63 Neutral	$3.07B	30.26	4.27%	7.21%	-0.98%	-32.02%
Sector *	60 Neutral	$2.73B	11.44	0.07%	8661.49%	5.94%	-15.68%
SLG	52 Neutral	$3.97B	663.10	-0.12%	5.72%	13.36%	94.82%
DEI	52 Neutral	$2.81B	104.54	1.03%	5.50%	-3.33%	―

SL Green Realty Corporate Events

SL Green Realty Reports Q1 2025 Financial Results

SL Green Realty Corp. reported a net loss of $0.30 per share for the first quarter of 2025, contrasting with a net income of $0.20 per share in the same period of 2024. The company’s funds from operations (FFO) also declined to $1.40 per share from $3.07 per share in the previous year, due to lower gains on debt extinguishment and negative adjustments on derivatives. Despite these financial challenges, SL Green signed 45 Manhattan office leases covering over 600,000 square feet and maintained a same-store office occupancy of 91.8% as of March 31, 2025. The company also completed significant investment activities, including the acquisition of 500 Park Avenue and the sale of 85 Fifth Avenue, while its special servicing business managed $4.8 billion in active assignments.

Spark’s Take on SLG Stock

According to Spark, TipRanks’ AI Analyst, SLG is a Neutral.

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.

To see Spark’s full report on SLG stock, click here.

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.