SL Green Realty (SLG) AI Stock Analysis

• Market Cap: $4.98B
• Dividend Yield: 4.73%
• Average Volume (3M): 779.15K
• Price to Earnings (P/E): 663.1
• Beta (1Y): 1.62
• Revenue Growth: 13.36%
• EPS Growth: 94.82%
• Country: US
• Employees: 1,221
• Sector: Real Estate
• Sector Strength: 63
• Industry: REIT - Office
• EPS (TTM): -0.30
• Shares Outstanding: 71,016,820
• 10 Day Avg. Volume: 970,320
• 30 Day Avg. Volume: 779,149
• PEG Ratio: 0.09
• Price to Book (P/B): 0.45
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -87.32
• Enterprise Value/Market Cap: 1.70
• Enterprise Value/Revenue: 2.32
• Enterprise Value/Gross Profit: 19.34
• Enterprise Value/Ebitda: 8.26
• 1Y Price Target: $65.17
• Price Target Upside: -0.88% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 12

• Rating: 58 Neutral
• Price Target: ―

SL Green Realty's moderate financial performance, including revenue growth and cash flow challenges, is a key factor. The stock's technical indicators suggest caution, and the high P/E ratio indicates overvaluation. Positive earnings call sentiment and strategic corporate events provide some optimism, but are countered by financial challenges and valuation concerns.

Positive Factors

Financial Performance

Headline Q1 FFO was $1.40, above the $1.29 estimate and consensus at $1.30.

Lease Agreements

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

Leasing Activity

SL Green's leasing pipeline grew to 1.1 million square feet compared to 974,000 square feet in early March, showing robust leasing activity.

Negative Factors

Economy Impact

A potentially weakening economy is already negatively impacting stock valuation.

Interest Expenses

Higher interest expenses were noted, impacting financial results.

Operating Results

Q1 operating results were softer with leased rate moderating on lighter volume and weaker rents.

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 shows moderate revenue growth but struggles with profitability due to a negative net income. The balance sheet reveals a moderate reliance on liabilities, with a positive operating cash flow indicating acceptable liquidity. However, improvements are needed in converting income to cash flows.

Income Statement

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

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

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.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
938.24M	886.27M	913.71M	826.74M	861.31M	1.05B
	Gross Profit
437.60M	431.60M	435.55M	395.65M	495.62M	664.19M
	EBIT
187.69M	260.97M	69.46M	178.40M	158.94M	526.19M
	EBITDA
381.76M	468.41M	-206.38M	327.93M	311.92M	839.86M
	Net Income Common Stockholders
-3.31M	30.65M	-557.30M	-71.63M	457.06M	379.80M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
192.43M	207.11M	231.41M	214.51M	286.17M	294.63M
	Total Assets
11.41B	10.47B	9.53B	12.36B	11.07B	11.71B
	Total Debt
4.78B	4.52B	4.42B	6.51B	4.97B	5.42B
	Net Debt
4.60B	4.34B	4.20B	6.31B	4.72B	5.15B
	Total Liabilities
6.97B	5.92B	5.27B	7.26B	5.75B	6.21B
	Stockholders Equity
3.84B	3.95B	3.79B	4.76B	4.96B	4.91B
Cash Flow		Free Cash Flow
160.98M	0.00	229.50M	276.09M	255.98M	554.24M
	Operating Cash Flow
160.98M	0.00	229.50M	276.09M	255.98M	554.24M
	Investing Cash Flow
-53.81M	0.00	171.34M	425.81M	993.58M	1.06B
	Financing Cash Flow
-263.60M	-252.23M	-449.38M	-654.82M	-1.29B	-1.48B

SL Green Realty Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 65.75
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SLG, the sentiment is Positive. The current price of 65.75 is above the 20-day moving average (MA) of 59.60, above the 50-day MA of 55.68, and above the 200-day MA of 63.97, indicating a bullish trend. The MACD of 2.59 indicates Negative momentum. The RSI at 74.94 is Negative, neither overbought nor oversold. The STOCH value of 89.06 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SLG.

SL Green Realty Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
KRC	72 Outperform	$8.41B	21.17	3.69%	6.08%	1.11%	-3.07%
PGRE	70 Outperform	$1.54B	―	-2.11%	2.17%	1.67%	73.75%
CUZ	66 Neutral	$5.09B	90.59	1.15%	4.23%	10.93%	-31.07%
HIW	65 Neutral	$3.39B	19.65	7.21%	6.37%	-2.01%	31.64%
Sector *	61 Neutral	$2.86B	10.96	0.41%	6.08%	5.73%	-21.25%
DEI	61 Neutral	$3.04B	47.30	2.49%	5.08%	-1.98%	―
SLG	58 Neutral	$4.98B	663.10	-0.13%	4.73%	13.36%	94.82%

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.