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Sl Green Realty Corp. (SLG)
NYSE:SLG
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SL Green Realty (SLG) AI Stock Analysis

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SLG

SL Green Realty

(NYSE:SLG)

Rating:58Neutral
Price Target:
$63.00
▲(6.13%Upside)
The overall score reflects challenges in financial performance with moderate revenue growth but profitability issues. Positive aspects include strong earnings guidance and leasing activity, while technical indicators and valuation present concerns.
Positive Factors
Debt Management
Net Debt/EBITDA improved to ~9x from ~10x, with total debt reduced by $114MM quarter-over-quarter.
Financial Performance
SLG raised FY'25 FFO guidance to $5.65-$5.95, up $0.40 at the midpoint, reflecting incremental income from 522 Fifth.
Market Perception
SLG's shares are up 15.8% after providing an operational update at REITWeek that defied negative market perceptions.
Negative Factors
Economic Outlook
A potentially weakening economy is already negatively impacting stock valuation.
Interest Expense
Lowering 2026 normalized FFO estimate due to higher projected interest expense and adjustments related to 100 Park Avenue.
Operating Results
'Clean' FFO came in below expectations, with operating results slipping sequentially due to a lower leased rate and weaker economics.

SL Green Realty (SLG) vs. SPDR S&P 500 ETF (SPY)

SL Green Realty Business Overview & Revenue Model

Company DescriptionSL 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 MoneySL Green Realty Corp. generates revenue primarily through rental income from its portfolio of commercial office properties. The company's primary revenue stream comes from leasing office spaces to a diverse range of tenants, including large corporations, financial institutions, and other businesses. Additionally, SL Green engages in property development and strategic property acquisitions to enhance its portfolio's value. The company also benefits from ancillary income streams such as parking and retail space leasing within its properties. Key factors contributing to its earnings include high occupancy rates, strategic property locations in desirable markets, and effective property management practices. SL Green may also engage in joint ventures or partnerships to optimize resource allocation and maximize returns on investment in its real estate assets.

SL Green Realty Earnings Call Summary

Earnings Call Date:Jul 16, 2025
(Q2-2025)
|
% Change Since: -7.12%|
Next Earnings Date:Oct 15, 2025
Earnings Call Sentiment Positive
The earnings call highlighted strong leasing activity, successful investment returns, and significant fundraising achievements, contributing to increased earnings guidance. However, there were some concerns about a slight dip in occupancy and increased interest expenses. The prospects of the Caesars Palace Times Square casino bid present a unique opportunity for future growth.
Q2-2025 Updates
Positive Updates
Strong Leasing Activity
Over 540,000 square feet of leasing concluded in the quarter, bringing the year-to-date total to 1.3 million square feet. The pipeline is refilled to over 1 million square feet for near-term execution, with a significant portion being midsized leases that are bringing down vacancy levels in Class A Midtown buildings.
Successful Investment and Transactions
Realized nearly $90 million of profit on a $130 million investment in the 522 mortgage position. Additionally, a transaction was consummated with a new domestic partner by selling a 50% participation interest in the preferred equity position in 625 Madison Avenue.
Significant Fundraising Achievement
Closed over $500 million of fund commitments, bringing the total closed to date to over $1 billion. This gives the company corporate liquidity and fund availability combined of over $2 billion.
Increased Earnings Guidance
Earnings guidance at the midpoint raised by $0.40 a share, reflecting substantial increased profit above the company's expectations.
Caesars Palace Times Square Casino Bid
Filed a response to the state's RFP in the casino license bid project, representing four years of work and planning. The project aims to provide significant tax revenue and uplift surrounding businesses.
Negative Updates
Occupancy Dip in Q2
A slight dip in occupancy was noted, attributed to an unbudgeted tenant default at 711 Third Avenue. Management assured this was not a significant concern but acknowledged it as a factor.
Interest Expense Increase
Interest expense is trending above original expectations by about $0.10 a share, primarily related to changes in the size or timing of potential asset sales.
SUMMIT Performance Below Expectations
SUMMIT's second quarter results were slightly below expectations due to taking the Ascent experience offline. Although total attendance was higher than projections, this impacted the revenue.
Company Guidance
In the SL Green Realty Corp.'s Second Quarter 2025 Earnings Results Conference Call, the company provided updated guidance reflecting a strong performance for the first half of the year. They reported concluding over 540,000 square feet of leasing in the second quarter, bringing the year-to-date total to 1.3 million square feet, with a pipeline of over 1 million square feet for near-term execution. The company increased its earnings guidance by $0.40 per share, or 7.4%, at the midpoint, driven by substantial gains from their debt and preferred equity portfolio. Specifically, the repayment of a mortgage investment at 522 Fifth Avenue generated $0.69 per share of incremental FFO. However, this was offset by $0.19 per share of reserves related to their preferred equity investment in 625 Madison Avenue. SL Green Realty also highlighted their liquidity position, with over $2 billion available to fund new investments. Additionally, they announced the closing of over $500 million in fund commitments, bringing the total to over $1 billion. The company remains optimistic about further occupancy gains, projecting to achieve a 93.2% occupancy rate by the end of the year.

SL Green Realty Financial Statement Overview

Summary
SL Green Realty shows moderate revenue growth and positive operating cash flow, but challenges with profitability and a moderate level of debt. Improvements in converting income to cash flow are needed.
Income Statement
62
Positive
The revenue has shown slight growth with a TTM increase of approximately 5.8% from the previous year. However, the company faced challenges with profitability, as indicated by a negative net income in the most recent TTM and EBIT margin of 34.05%. Historical volatility in net income suggests potential risks in maintaining consistent profitability.
Balance Sheet
55
Neutral
The debt-to-equity ratio is moderate, indicating a balanced approach towards leveraging. However, the equity ratio of 38.9% suggests a moderate level of reliance on liabilities. The company must manage its liabilities prudently to maintain financial stability.
Cash Flow
68
Positive
The company showed a positive operating cash flow in TTM, although free cash flow was flat compared to the previous period. The cash flow to net income ratios indicate potential areas for improvement in translating profits into cash flows.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue886.27M913.71M826.74M861.31M1.05B
Gross Profit431.60M435.55M395.65M495.62M664.19M
EBITDA409.61M-206.38M327.93M311.92M839.86M
Net Income30.65M-557.30M-71.63M457.06M379.80M
Balance Sheet
Total Assets10.47B9.53B12.36B11.07B11.71B
Cash, Cash Equivalents and Short-Term Investments207.11M231.41M214.51M286.17M294.63M
Total Debt4.52B4.42B6.51B4.97B5.42B
Total Liabilities5.92B5.27B7.26B5.75B6.21B
Stockholders Equity3.95B3.79B4.76B4.96B4.91B
Cash Flow
Free Cash Flow129.59M229.50M276.09M255.98M554.24M
Operating Cash Flow129.59M229.50M276.09M255.98M554.24M
Investing Cash Flow118.75M171.34M425.81M993.58M1.06B
Financing Cash Flow-252.23M-449.38M-654.82M-1.29B-1.48B

SL Green Realty Technical Analysis

Technical Analysis Sentiment
Negative
Last Price59.36
Price Trends
50DMA
60.82
Negative
100DMA
57.84
Positive
200DMA
63.25
Negative
Market Momentum
MACD
-0.26
Positive
RSI
41.98
Neutral
STOCH
10.49
Positive
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 59.36 is below the 20-day moving average (MA) of 61.70, below the 50-day MA of 60.82, and below the 200-day MA of 63.25, indicating a bearish trend. The MACD of -0.26 indicates Positive momentum. The RSI at 41.98 is Neutral, neither overbought nor oversold. The STOCH value of 10.49 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SLG.

SL Green Realty Risk Analysis

SL Green Realty disclosed 37 risk factors in its most recent earnings report. SL Green Realty reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 1 New Risks
1.
Our management of the Fund involves certain risks, which could adversely affect our business, financial condition and results of operations. Q4, 2024

SL Green Realty Peers Comparison

Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
75
Outperform
$8.81B22.533.69%5.80%1.11%-3.07%
70
Outperform
$1.55B-2.11%0.54%1.67%73.75%
66
Neutral
$3.32B19.307.21%6.62%-2.01%31.64%
65
Neutral
$3.22B50.212.49%4.79%-1.98%
64
Neutral
$6.89B17.45-1.92%7.02%4.59%-24.66%
63
Neutral
$4.77B84.771.15%4.51%10.93%-31.07%
58
Neutral
$4.58B663.10-0.35%5.07%14.21%79.46%
* Real Estate Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
SLG
SL Green Realty
59.36
-0.88
-1.46%
CUZ
Cousins Properties
27.75
3.63
15.05%
DEI
Douglas Emmett
15.50
1.06
7.34%
HIW
Highwoods Properties
30.23
2.94
10.77%
KRC
Kilroy Realty
37.24
4.10
12.37%
PGRE
Paramount Group
6.32
1.19
23.20%

SL Green Realty Corporate Events

Business Operations and StrategyFinancial Disclosures
SL Green Realty Reports Q2 2025 Financial Results
Negative
Jul 17, 2025

SL Green Realty Corp. reported a net loss of $0.16 per share for the second quarter of 2025, a decline from the $0.04 per share loss in the same period of 2024. Despite the loss, the company recorded funds from operations (FFO) of $1.63 per share, down from $2.05 in 2024, and increased its 2025 earnings guidance due to income from its debt and preferred equity portfolio. The company signed significant office leases in Manhattan and reported a slight decrease in same-store cash net operating income for the quarter. Key investment activities included the repayment of a commercial mortgage investment and the sale of a property, generating substantial proceeds. The company also engaged in strategic acquisitions and sales, impacting its financial positioning and operations.

The most recent analyst rating on (SLG) stock is a Hold with a $69.00 price target. To see the full list of analyst forecasts on SL Green Realty stock, see the SLG Stock Forecast page.

Executive/Board Changes
SL Green Realty Amends CEO Compensation Agreement
Neutral
Jun 24, 2025

On June 24, 2025, SL Green Realty Corp. amended the employment agreement with Marc Holliday to better align his compensation structure with performance metrics and clarify terms related to the property at 1515 Broadway. The amendment also removed formulaic cash payments for changes in control, indicating that a reduction in compensation post-change would be considered ‘good reason’ for contract termination.

The most recent analyst rating on (SLG) stock is a Buy with a $90.00 price target. To see the full list of analyst forecasts on SL Green Realty stock, see the SLG Stock Forecast page.

Executive/Board ChangesShareholder Meetings
SL Green Realty Holds Annual Stockholders Meeting
Neutral
Jun 3, 2025

SL Green Realty Corp. held its Annual Meeting of Stockholders on June 3, 2025, where several key decisions were made. The meeting resulted in the election of eight directors, approval of executive compensation, ratification of Deloitte & Touche LLP as the independent accounting firm, and approval of the Sixth Amended and Restated 2005 Stock Option and Incentive Plan, with significant shareholder support for each proposal.

The most recent analyst rating on (SLG) stock is a Hold with a $80.00 price target. To see the full list of analyst forecasts on SL Green Realty stock, see the SLG Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 19, 2025