New Thread

Ctrl

SL Green Realty Corp. Stock Price: Quote, Forecast, Splits & News (SLG)

Perplexity Finance

Company Profile

SL Green Realty Corp. Price & Performance (SLG)

Stock Performance

Updated Apr 24, 8:00 PM UTC

SL Green Realty Corp.

$54.48USD

+$0.93 (+1.74%)

After Hours

-$0.52 (-0.95%)

Open

$53.26

Market Cap

$4.04B

Year High

$82.81

High

$54.79

P/E Ratio

-129.7

Year Low

$45.15

Low

$53.26

Dividend Yield

5.56%

Volume

544.75K

Latest News

Earnings Beat: SL Green Realty Exceeds Q1 Projections, Maintains Strong Leasing Momentum
Apr 17, 2025
SL Green Realty reported a Q1 2025 net loss of $0.30 per share, surpassing analyst expectations, while funds from operations reached $1.40 per share. The company signed 602,105 square feet in new Manhattan leases, maintaining over 91% occupancy, and achieved 100% occupancy at newly acquired 500 Park Avenue, signaling operational resilience.123
Analyst Sentiment on SL Green Realty Turns Cautious Despite Dividend Yield
Apr 23, 2025
Recent analyst reviews show mixed outlooks for SL Green Realty, with average 12-month price targets dropping nearly 8% to $68.11. While the stock offers a compelling dividend, concerns about revenue declines and market volatility persist. The company’s strategic Manhattan focus remains a key factor for potential recovery.45
Lawsuit Filed: SL Green Pursues $16M in Back Rent from One Vanderbilt Tenant
SL Green Realty has initiated legal action against a German tenant at One Vanderbilt, seeking $16 million in overdue rent. The lawsuit highlights ongoing challenges in the Manhattan office market, even as the company focuses on high occupancy and fresh leasing activity in its core portfolio.62

What's Happening

Peers

Earnings

Report Date

Apr 16, 2025

Reported Revenue

144.5M

Miss -8.62%

Avg 1d Change

1.77%

Report Period

Q1 2025

Reported EPS

1.4

Beat +10.24%

Implied Move 1d

4.43%

Transcript

13m 17s

Before turning the call over to Mark Holliday, Chairman and Chief Executive Officer of SL Green Realty Corp, I ask that those of you participating in the q and a portion of the call to please limit your questions to two per person. Thank you. I will now turn the call over to Mark Holiday. Please go ahead, Mark.

13m 39s

Thank you. Good afternoon, everyone, and thank you very much for joining us today. Given all that's transpired in the global markets since our last call, I was especially happy with our first quarter's earnings that we announced yesterday. In particular, and as a result of the hard work of the entire SL Green team, the company's earnings for the quarter exceeded the Street's expectations and our own internal projections by a significant margin. Our NOI was on top of our forecasts Our leasing results were well ahead and our profits generated by our debt related businesses were very strong. This should come as no surprise to anyone given my commentary in December at our investor conference, which focused on an opportunity rich commercial debt market. I highlighted that new originations, secondary market purchases, distressed opportunities, the new debt fund and our special servicing business was going to take center stage in 2025 and Q1 performance in this area is certainly an affirmation of that belief with much, much more to come. We laid out our thesis in this point in cycle for making equity like returns in credit investments, something that has been our stock and trade for over a quarter of a century.

14m 58s

No one has made more subordinate investments on Manhattan office buildings over that period of time than we have. Particularly in the early years of a recovery, our realized returns are typically far higher than the average returns we normally experience. We expect 2025 and 2026 to be no different. The recent volatility in the credit markets benefits this business and our new debt fund and substantial liquidity gives us the ability to selectively identify investments with attractive returns and protected downside. In just the past nine months, we've closed on nearly $200,000,000 worth of DPE investments with the more recent one slated for the fund and we are actively negotiating on a pipeline of over $1,200,000,000 of new debt investments. To categorize our debt related earnings, as either non recurring one off, noisy or confusing is in my opinion to miss the point. Our debt platform is a meaningful component of who we are Our expertise and track record in this area is well established. Given the opportunities set in front of us, I do expect that our debt related businesses will account for increasing profits to our shareholders and I expect we are already at the higher end of our guidance range a range we will reassess next quarter.

16m 25s

With an upward bias if we are successful in closing all of the business now in front of us. And that's not to say we aren't also concentrating on growing our equity portfolio. In the first quarter, we closed on the acquisition of five hundred Park. And weeks later, we signed a lease bringing the building to 100% occupancy. Now we are designing an improvement program with elevated finishes and amenities to materially move the rents up as tenants renew and roll. Also in the first quarter, we bought out our partner in one hundred Park. Acquiring a 50% position on attractive terms in a building that is now 97% leased. We've owned one hundred Park for approximately twenty five years, and it continues to be a solid performer for the company. Finally, Summit One Vanderbilt was the number one attended experience of its type in the first quarter according to a recently published report. In just over three years, the summit has become one of the most sought after experiential attractions in New York City. I know there was a question raised regarding the impact that reduced international tourism might have on some its attendance. And I would simply note that last week, we set a ticket presale record with over $05,000,000 of advanced ticket revenues sold in one day.

17m 48s

In closing, I'd just like to say in uncertain times, SL Green shines. Thank you.

17m 58s

As a reminder, to ask a question please press 11 on your telephone and wait for your name to be announced. In the interest of time, we ask that you please limit your questions to two per person. Please stand by while we compile the Q and A roster.

18m 22s

And our first question comes from Alexander Goldfarb of Piper Sandler.

18m 29s

Hey, good afternoon down there. So two questions. First, Steve, can you just talk a little bit more about prebuilts? It's a topic that we're hearing from further from you guys from other landlords. Just curious how that has gone in winning tenants, what the economic rent potential is, versus raw space and how that's been going versus the market in general? Sure. I mean, know, pre builds or also known as build to suits where we do a custom build for a new tenant coming into the portfolio have been around for a considerable amount of time. And I would say broadly speaking, in order to be competitive in the markets, if you're transacting with a tenant that's, call it, certainly 10,000 square feet or less, it's almost mandatory that the space be built or that the landlord is willing to build the space. For a variety of reasons. Tenants want to take out the mystery of cost. They want to accelerate the decision, the timeline from decision to move in. And you know, from for us, having the expertise in house with design and construction And we're very well practiced at doing these pre builds. I think it's a big competitive advantage to do the prebuilts in a way that we execute in a very high design manner and do it throughout the portfolio on all price points of product.

20m 4s

And then the second question is, obviously, everyone's focused on tariffs and the impact on leasing. Everyone's trying to figure out their crystal balls. As you look back in time when the market has gone through sell offs like we are, is there some sort of lag and you're like, after three months of a market sell off, you see the impact on leasing activity slowing down after two months. How do you how can we gain comfort Obviously, you've done well year to date, but how do we get comfort of how long the market remains disrupted in the stock market before there's a potential to start seeing discussions in your pipeline slow?

20m 44s

Well, you know, that's an impossible answer as to how long it would take to have absolute clarity. You know, in prior disruptions, Truly what is the cause of the disruption as to is a function of how fast we see the impact in the marketplace. But I think what's most telling, and give me a second to sort of tell the story, if you go back in our pipeline three weeks ago, so pre announcement of tariffs, We had 62 tenants in the pipeline, versus today we have 64 tenants in the pipeline. Of those 64 tenants, 44% of them have an expansion requirement as part of the deal that they're negotiating. Of the tenants that we replaced over the past three weeks, 18 tenants were replaced, by 20 new tenants. And of those 18 that were replaced, 14 were replaced because leases were signed. So I only lost four tenants and those were done really because tenant chose a different building or we elected a different tenant to replace that tenant for a space we're negotiating. So point being, we haven't seen a slowdown yet. We haven't seen any commentary from the marketplace and we haven't seen any pullback from any decisions in our portfolio yet.

22m 2s

And that I think over those three weeks gives a very good indicator of where why we feel you know, cautiously optimistic, but time will tell.

22m 12s

Thank you.

22m 14s

Thank you. Our next question comes from Nick Yulico of Scotiabank. Your line is open.

22m 29s

Hi, thanks.

22m 31s

First question is, I was hoping you could just talk a little bit more about the trends you're seeing in the overall debt financing markets and if you have a sense for I know the CMBS market was very strong heading into the tariff announcements and I think now it's mostly on hold, but any update on just sort of roadmap of how that could be functioning start functioning better again? Thanks.

22m 55s

Yeah. I think with the credit markets in general, we certainly can expect to see some turbulence as a result of the macro environment across the country, but I expect New York City to mostly be immune from that. There is a flight to quality in moments like this, and New York City has demonstrated an ability to stand out from every other market. At the end of the day, needs to be put to work by investors. And our market is experiencing positive momentum as a result of a weaker U. S. Dollar demand for tangible assets, the reopened CMBS market we've seen since the beginning of this year, and prospect of rate relief. And all of that's paired with fundamental and sentiment recovery that we've seen that's really at a five year high. Looking at the CMBS data, twenty twenty five year to date we've seen $6,900,000,000 of New York City office CMBS. [indiscernible] That's versus zero in 2023. And $300,000,000 in 2024 during the same exact period. And in addition to that, we've also already eclipsed the full 2024 levels. So, balance sheet side, I'd say we saw recently the Manhattan West deal get done at $1,250,000,000 and we're going to be watching closely the transactions at 300 Park $5.90 MAD and $13.45 sixth in the coming weeks and use that to gauge how the markets are reacting from some of the macro news.

24m 27s

Yeah, I would just add that and distinguish What I think you're gonna see in New York and the deals that Harry just just mentioned is going to be more pricing related. I mean, clearly pricing is gapped out, but that's not the same as what we experienced in 2022 and 2023. There was just an absence of deals. There were no buyers. There's a lot of buyers. There's a lot of there's a lot of, capital out there. There's a lot of capital that wants to put their money into CMBS. The risk premium they may demand now is going be higher. You'll see that I think, you know, in higher rates, the deal just got done this week. At, you know, rates that probably are higher than what would have been done you know, a month ago. But there's a dramatic difference in market stability when you talk about buyers who want more premium versus lack of buyers. And I think as Harry said, in New York, you're going to see deals get done. And there'll be some price discovery and hopefully that price discovery will compress as per Steve's comments. The market evidences itself that there's still great demand out there for office product.

25m 41s

But there's no I wouldn't relate this to what we saw previously. In prior years where there just was no activity.

25m 51s

All right. That's helpful. Thanks. And then second question is just, I think, Mark, you said something about upward bias to guidance and I wasn't sure if that was just predicated on getting more sort of investments done on the debt side. I want to be clear on that. And then maybe on the other side of that, in terms of your FFO guidance range right now for the year, Matt, if there's any downside protection we should think about, if If we're heading into a weaker economy or anything else, do you still feel good about the guidance range there? Thanks.

26m 28s

Yeah, going in reverse order, certainly comfortable with where we are right now. As we highlighted in December, you know, the balance sheet is very insulated. We termed out all of our debt last year, We're hedged on all but three or 4% of our floating rate debt. So rates can move around and the markets can fluctuate and we're insulated there. So certainly comfortable from the downside The upside bias is, you know, Mark talked about, investment opportunities. We have some other stuff we're working on that could result in [indiscernible] revisions, but, you know, we typically don't revisit that in the first quarter. We get at least six months of activity behind us, and reevaluate. But, you know, the the prospects are are good as we sit here now.

27m 14s

Yeah. And not just debt related. I think that was part of your first part of your question. Is that all related to debt? No, we've got we've got like, you know, a lot in front of us right now. Equity, debt, fee oriented, leasing deals working on it. There's a lot of contributors. And my point was simply, if we get it all done, and you know, that's our goal is to get it all done, then [indiscernible] we'll we'll need to sit and and and and and and revisit. But, you know, we'll that'll be a topic for three months from now.

27m 49s

All right. Thanks everyone.

27m 51s

Thank you. Our next question comes from Steve Sakwa of Evercore ISI. Your line is open.

28m 3s

Thanks. Good afternoon. Mark, I know at the Investor Day and on other calls, you've talked about wanting to try and secure a new high quality development site in Midtown. I'm just curious, given kind of what's going on in the macro and the uncertainty over tariffs and costs, how challenging is that to try and pencil out today and is that something you'd still be looking at, say, this year or maybe that something more for next year?

28m 30s

I think it's completely delinked Steve. These development projects are five to seven year journeys. And when we take a pen and pencil or computer to underwriting, We are this is not a question of two months ago, we were excited about development two months later, we're not. And next month we are. And next month we're not based on the stock market or [indiscernible] or tariffs. There is an enormous scarcity of high quality office development sites that can be delivered over the next four or five years. And any a city like New York that is [indiscernible] the pivotal CBD in this country. And is growing [indiscernible] [indiscernible] reaching all sorts of records on employment, on Wall Street profits, on bank earnings. There's a confidence we have in the long term viability of this market. That we would absolutely welcome the prospect of developing a significant new site in core Midtown Manhattan in our market, in SL Green territory. For sure. And that that hasn't changed in my opinion or mine in the past three months. My pricing, it goes back to what I said earlier. My my on the bond question. My pricing change one way or the other Maybe.

30m 25s

Do I think rents have changed for that product? Absolutely not. In this building alone at One Vanderbilt, we have a constant flow of inquiries for expansion. Because we have great tenants here and elsewhere through the portfolio. And notwithstanding what you're seeing in the market, there's still companies that are growing and taking advantage of this market and need more space. This isn't anecdotal. These are these are tenants who are ringing, you know, ringing our doorbells and saying, we need to grow. This isn't like modest growth. Some of these requirements are significant. And the issue I have right now is not tariffs. The issue I have right now is delivering you know, one and a half to 2,000,000 square feet of brand new class, a one Vanderbilt like style office space, [indiscernible] you know, the most sophisticated base of tenants in the country that want to grow. And I'm as committed to that today as I was in December.

31m 37s

Great, thanks. I guess secondly, and I don't know how much you can comment on this, but just where are we kind of in the whole downstate casino license plan? Is that something that you still expect I guess, the state to kind of get concluded by the end of this year? Or might that process get delayed?

31m 57s

This is Brett. How are doing? The process has been, full speed ahead. Since call it December of last year. When the state for the first time in four years reached out to all the bidders and said, we'd like you to start the environmental review process. That was new. We took it very seriously. Great sign. And we commenced immediately We're an as of right project. There's two or three other as of right projects that are out there also starting their environmental process We expect that given the amount of expenditure the request of the state to engage professionals for that review that June 27, will be the on track day to submit the license for the state's review. We're looking at from there, a September local approval process, and hopefully a year end award of that license.

33m

The state has acted much differently this year than it has in all four prior years. And we're very ready for it. We're excited. We're eager. We've been ready for you know, the past two or three years.

33m 14s

And, can't wait to launch out there publicly and get going.

33m 22s

Thank you. Our next question comes from [indiscernible] Bank of America Securities. Your line is open. Hi, good afternoon. Thanks for taking my question. Going back to the active leasing pipeline, your press release noted 1,100,000 square feet. Would you say they're kind of following the typical leasing deal timeline? Or is there evidence that corporate decision making is pausing? Or is it just kind of the tightness in the market? There's more urgency and corporates are tuning out the macro uncertainty.

34m 2s

It's it's really a function of of the types of tenants that we're negotiating with a point in time. And I think there's certainly no sense of tenants feeling pressured to make accelerated decision and maybe there's they slow down a little bit because we're working on a bunch of big deals. But I don't think this is a a a material change in people's sentiment or their how they're conducting themselves or how their third party consultants are conducting themselves. So I don't think there's really a lot of color commentary as to you know, what we're seeing right now versus how it's been in over the past several months?

34m 44s

Okay. And then on the fee rents and TIs came down in 1Q. Can you talk a little bit more about how you kind of see that through the course of the year and what tenants are accepting? Yes, that's just really a function of the basket of individual transactions for the quarter. I think broadly speaking, concessions have been stable for really all through last year coming into this year. We haven't seen material change. If anything, I would say you know, there's a good chance that in certain submarkets, like on Park Avenue and Sixth Avenue where you see real pockets of strength in the Midtown market. That you'll see some tightening of of concessions. I don't know. It's enough to really move the needle, but as certainly the face rents are going up, And I think, you know, we've seen the rents go up on Park Avenue, and I think the entire community is is expecting Sixth Avenue rents to go up because it's been a tremendous amount of leasing and there's number of large deals pending on Sixth Avenue. And that's gonna drive face rents as we as we look into the rest of the year.

35m 50s

So the natural extension after that is, you know, after rents go up, then they'll start to get pressure on trying to push concessions down. I think it'll be, you know, sub market by sub market, not broadly across all of the Manhattan market.

36m 4s

Thank you.

36m 6s

Thank you. And our next question comes from John Kim of BMO Capital Markets. Your line is open.

36m 18s

Thank you. I wanted to ask about a couple of your objectives for the year, which, includes 2,000,000 square feet of leasing and 93.2% year end leased occupancy.

36m 29s

So in the first quarter, you're ahead of the pace, but occupancy did go down.

36m 34s

And I'm wondering just given all the uncertainty in the markets today, if you still feel comfortable with those targets.

36m 42s

We're comfortable Our budget our living budget at the moment in excess of 2,000,000 feet. That's as of like an hour ago.

36m 53s

So you know, that'll go up and down I feel pretty good about $2,000,000 We had a good start first quarter. We're already I think over 100,000 feet leased year to date well, April to date, quarter to date. And, you know, Steve's already talked about the pipeline. So, you know, look, we're going to monitor closely as we always do, you know, the pipeline, to you know, evaluate trends and sentiment and whatever. But on the one hand, you've got geopolitical. On the other hand, you have tenants with real need for space. And that's not abating that we see yet. We did so much in the first quarter We would hope to be at around a million feet for the second quarter. And we think by year end, we could eclipse that 2,000,000 feet. And a lot of that's just driven by return to office. You had you know, years of people you know, on a hybrid work, model. And, you know, now, this is a competitive environment. People are back. People are focused. People need space. And it's like we're just seeing that all over the market and you know, if ever there's a moment we don't, you know, we'll be the first to to tell, you know, you guys and our shareholders.

38m 17s

But, at the moment, we're feeling good about both the occupancy level and the volume. [indiscernible] To 500 Park. I I realized it wasn't a huge lease, but you got it to % occupancy. And I'm wondering what that implies for the mark to market of that asset. And if there's any update on this 6.8% cap rate that you acquired it at Well, so on mark to market, I think we have to look at it in two ways. The lease we signed relative to both the in place and the current market, But more interesting to me is where those rents will be after we finish a $20,000,000 plus improvement program that we have commenced. We've selected our architect. We're going to be doing work in the plaza where in the amenity [indiscernible] some other improvements. Bringing sort of elevated hospitality to the building. And in that regard, we're projecting rents up off of today rents by at least $15 a foot on average. For what I'll call repositioning program. But if the question is specifically where was that lease relative market?

39m 37s

So that one I don't think had a mark to market calculation because it was it was filling vacant space at the time of acquisition.

39m 44s

But I can tell you that the rent that we signed on that lease was $10 a foot higher than the prior sponsor was asking for the space the day before we acquired the building.

39m 59s

And where does the yield go to? Compared to the $6.08 that you bought it at?

40m 4s

We sit today at about a 7.2%. That 6.8% you referenced from our investor conference is now 7.2%. Got it. Thank you.

40m 14s

Thank you. Our next question comes from Ronald Kamdem of Morgan Stanley. Your line is open.

40m 24s

Two quick ones for me. Just starting on the disposition targets of $1,000,000,000 just how are you thinking about sort of that? What are you seeing in the markets? Thanks.

40m 35s

Yeah, look, the plan is on track. And we feel confident based on the meetings and negotiations we're having I think it's important for everyone here to realize that our team has navigated through the past five years of COVID, negative office bias, and high interest rates. And through that period, we completed approximately $9,000,000,000 of gross sales at share. At a blended cap rate of 4.3 percent and $1,400 a foot.

41m 2s

Just demonstrating that our portfolio is liquid and investable in even the toughest of markets that you can imagine.

41m 9s

So, yeah, sure, there are challenges in front of us as a result of some macro conditions, but it's far less than what we've experienced the past five years and so we're on track for the plan this year.

41m 21s

Great. And then my second question, just going back to that 1,000,000 square feet of pipeline, just a little color on how much of that is non financial, right? And then the second piece of it, how much of that is outside of Park Avenue and Grand Central, which have been pretty strong? Sure.

41m 41s

Well, let's see. The easy one is the first part of your question. There's a quarter million square feet of Tammy tenants in that pipeline. Which I think is pretty notable because that's probably as much square footage as we've seen from that industry over the past couple of years within our portfolio. And certainly Tammy broadly speaking in the market, has doubled the number of active tenant searches year over year. And then as far as Grand Central, you know, the majority of our portfolio sits within the Grand Central area. So it's it's safe to say that the majority of the pipeline within the Grand Central Market which has proven to be one of the one or two most active submarkets over the past year.

42m 32s

Thank you. Our next question comes from Blaine Heck of Wells Fargo. Your line is open.

42m 44s

Great, thanks.

42m 44s

Just a follow-up on the last question. Can you give a little bit more color on the profile of the kind of most active CAMI tenants and whether that activity is driven by relocations from other markets or kind of organic growth from tech and media companies that already have a presence in the New York market?

43m 3s

All of them are relocations. As best I recall, all of them are driven by growth. In that growth, some of those tenants are are AI related businesses. And I don't know what other color I can give you on it, but you know, yeah. I mean, it's it's it's growth, it's relocation, their household names and we're seeing seeing an AI name attached to a lot of these tenants. Got it. That's helpful.

43m 43s

And then maybe a different angle on tariffs and uncertainty. I guess, you talk about the profile of potential capital partners that are showing interest in JV deals or even the debt fund at this point? And in particular, whether there's been any notable change in demand from foreign investors given the recent macro uncertainty and trade disagreements?

44m 6s

We haven't seen it yet.

44m 9s

Would note countering what you just mentioned is the weaker US dollar. One thing that we experienced in '23 and '24 was the US dollar moving against us for those two years.

44m 21s

With the dollar getting weaker, it makes it much easier to have some of the conversations we're having. On the fundraising side for the fund, you know, our group of investors are institutional, both domestic and international, representing almost every region across the world. Guess the main point to make there, I think, I understand your question is, we have not seen a drop off in foreign investor demand for the debt fund or for product. Now the with respect to the dispositions, the proof will be when we close them. And, you know, we just started the year, so we're, you know, in the process of doing that and hope to knock those off in the second half of the year, contract first half, close second half.

45m 10s

Which is our usual rhythm to that. But as we sit here, we look at the shortlist for the you know, many different sales and JVs we're working on. I would still say a lot of the usual I don't wanna say suspects, know, our usual relationships are still steadfastly on that list.

45m 32s

So we'll more more to come on that on the next call, but, we've not seen any drop off of interest there.

45m 43s

Very helpful.

45m 46s

Thank you. Our next question comes from Omotayo of Okusanya of Deutsche Bank. Your line is open.

46m

Yes. Good On the Investor Day, there was a lot of emphasis around Office to Resi conversion and the opportunities and how that was new [indiscernible] proof of Talk a little [indiscernible] [indiscernible] Matayo Matayo, we're not we're not hearing you, Tayo. You've to ask it again because you're breaking up.

46m 32s

Oh, can can you hear me?

46m 33s

Now, yes. Now we can.

46m 35s

Oh, okay. Sorry about that. So we're seeing on the Investor Day, there was quite a lot of emphasis on the on the office to Resy opportunity in New York. [indiscernible] Could you just give us an update in regards to that? And how you are thinking about opportunities in your portfolio to do some of the potential more resi to office to resi conversions.

47m 4s

Yeah. So So I would say that as we sit here, three and a half, four months from from our investor conference, I would say the volume of announced or planned deals is anywhere between consistent or ahead of where we were and what we showed back in in December.

47m 27s

There's a lot of conversion candidates, particularly downtown, where the prices of the bricks and mortar and land enable conversion on a on an economic basis. We're seeing it on Third Avenue. Our own project 750 Third. As well as the old Pfizer headquarters as well as 675 Third and 767 Third which are both recent trades.

47m 58s

For office to residential. So I mean, there's four deals in that Third Avenue market. And you can imagine how quickly a market for office can tighten. When you take four very viable office buildings. And take it off the market, which all four of those are essentially off the market now for for office tenancy. And that has a very firming effect, if you will. There's going to be a lot in Mid South as well.

48m 25s

Due to you know, the, the zoning changes that were accomplished there as part of City of Yes. And I think it's a significant and one of those understated or under not well understood trends, that we'll look back on in two or three years when this market really firms up and you see occupancy levels drop to vacancy levels drop to single digits. A big part of that, half of that's going to be net absorption and growing demand, half of it's going to be resi conversion. So I think it's think it's taken root. There's projects underway like ours. There's going to be thousands and thousands of units delivered. And I think ultimately, in excess of 25,000,000 square feet of office is going resi. It'll take time, to complete and deliver but it's fairly instantaneous in terms of its exit out of the inventory of available space to lease.

49m 34s

Thank you.

49m 37s

Thank you. Our next question comes from Seth Berge of Citi. Your line is open.

49m 48s

Hi, guys. Thanks for taking my question. Are you guys seeing any larger requirements for the remainder of 1 Madison? And you touched a little bit on the supply picture, but can you talk about the demand for Midtown South?

49m 59s

Yeah, we've seen a market change in tour activity and some early proposals that are on the table right now.

50m 10s

I was sharing with Mark kinda a week or two ago that the number of qualified large prospects that have either toured or are in a diligence process focused on 1 Madison just over the past thirty days is probably more than we saw all of last year. So and I I don't wanna get too far out over our skis, but it it's certainly feels very promising at this moment compared to any time over the past eighteen months.

50m 42s

Thanks. And then just on the summit, kind of what percent of visits are international visitors? And then kind of can you talk a little bit about what the booking window looks like for that?

50m 53s

Question is what percent is international? You know, look, don't want to mislead. I don't have those stats at my hand right now. I think traditionally it's about [indiscernible] And one third domestic. That's a very high domestic attendance level for I say domestic, I'm talking tri state area.

51m 17s

Like local.

51m 18s

It's like a third local. It's like two third tourism. Within that tourism break, I mean, the preponderance is domestic.

51m 28s

But you know, when I go up there, you know, feels to me like almost 35%, 40% is foreign tourists. I don't have good stats on it. Does anyone else have?

51m 39s

Here?

51m 41s

A lot of repeats. Yeah.

51m 44s

Yeah.

51m 44s

A lot of repeats for sure. It's an unusual in so much as people go back and back. It's only been open three and a half years. We've had people come back five, six, seven times. Because it's not an object, know, it's an experience, it's an attraction. It's a destination and it's thrilling. So for those that know it, you know what talking about. For those that don't, you should get there right away. You know, in 2024, it was about closer to 50% foreign visitor. I'm just getting that stat sent to me right now. So a little higher than I said.

52m 19s

But, you know, a good balance and we see no drop off in any demand or change in composition through the first quarter.

52m 35s

Thanks.

52m 37s

Thank you. Our next question comes from Vikram Malhotra of Mizuho. Your line is open.

52m 47s

Thanks for taking the questions. Maybe just building up on the summit question in New York. I guess, just can you talk a little bit about the opportunity in Paris where you are, potential time line for execution?

53m

A lot more to come on Paris, between now and end of year, hopefully with some imagery that we'll be able to share with you as well, which I think everyone will find extremely exciting. But Rob Schiffer and I just came back from Paris about two weeks ago where we spent a lot of time with developers there and the site and the construction. And our team, we have a big team that's already been assembled in Paris of engineers, designers, expediters, etcetera. Working on our taking things from conceptual to design development, We expect to have possession of the floors for Summit Paris sometime in Q1 of twenty six. And we expect to be open to public sometime at the end of Q1 twenty seven. So to me that's right around the corner because there's so much to do. We're going to be putting a team and a staff together out there that'll be managed and run by this amazing team we put together here in New York, with obviously you know, local senior people on the ground in Summit. We've started some of that hiring already. I can only tease you with the fact that the early artistry coming out of Kenzo's shop is staggeringly beautiful.

54m 30s

And, it's gonna be in the spirit of what we have upstairs, but very different very unique.

54m 38s

I think a nod towards, Parisian abstraction [indiscernible] you know, I am really excited to be able to cut that ribbon in twenty seven.

54m 50s

Great. And then just on the FAD FAD guidance, at the Investor Day kind of relative to 1Q, Can you just remind us sort of as we go through the year, I'm assuming there's more leasing you did that's converting to cash later in the year. Is there like a ramp up as we go through the year or anything kinda onetime that we should model in for the rest of the year?

55m 13s

Yeah, two components of FAD. You know, over the course of the year, as we highlighted in a recent presentation, you know, physical or commenced occupancy, whatever you want to call it, economic occupancy, is increasing every quarter throughout the course of the year. Such that we end up, you know, going from around 88%, 89% at the end of last year to over 92% at the end of this year, so that will help the revenue side. On the cost side, obviously, as the space is built, the build out costs go down, That said, typically our capital spend accelerates into the end of the year. It's lightest in the first quarter, and heaviest in the fourth, as the projects get completed towards the end of the year. So, you know, the the Fed number for the first quarter was a solid one, better than our expectations. But for the full year, we're still seeing roughly in line with what we guided to in December.

56m 12s

Thank you.

56m 17s

Our next question comes from Peter Abramowitz of Jefferies. Your line is open. Peter, your line is open.

56m 30s

Thank you. Yes, just wanted to ask quickly about Eleven Madison. You have the expiration in September. Just wondering if there are any comparable deals you could point to, to give us an idea of maybe you would expect in the refi market. And any comments on if you're considering doing something in the CMBS market rather than bank deal.

56m 54s

Yeah, sure.

56m 55s

I would sort of say this is an active negotiation and deal that we're working on now. So I'd prefer not to comment on it with more to come you know, later this year. Obviously, we got our $5,000,000,000 plan done last year. We have a lot of reps now as to how to work with existing lenders and the market as to obtaining efficient financing for these assets. And I would say just stand by and we'll update you into the next call.

57m 22s

All right. That's all for me. Thanks.

57m 25s

Thank you. This concludes our question and answer session. I'd like to turn it back to Mark Holliday for closing remarks.

57m 33s

Okay, great. Well, appreciate all the questions. And like I said, I want to just leave you with the notion that we're working very hard on all these different opportunities in front of us, but also very cognizant of state of the markets right now. And we're going to stay very nimble and be very reactive to both opportunities. Making sure we keep the buildings as least as possible and get the occupancies up.

58m 4s

And Matt will continue to steward the balance sheet. So I think we're in great shape. At this moment in time. Really as good as I could have asked. And we look forward to speaking to you again in, three months.

58m 19s

This concludes today's conference call. Thank you for participating and you may now disconnect.

Key Insights

SL Green's Q1 earnings exceeded both internal and Street expectations, driven by strong NOI, robust leasing results, and significant profits from debt-related businesses; management expects debt-related earnings to be a growing profit contributor and is already at the higher end of guidance, with potential for upward revision next quarter.
The company has closed nearly $200 million in DPE investments in the past nine months and is actively negotiating a pipeline of over $1.2 billion in new debt investments; management emphasized that the debt platform is a core, recurring part of SL Green's business.
Leasing activity remains strong with a current pipeline of 1.1 million square feet and no slowdown observed despite recent macro volatility; management remains confident in achieving its target of 2 million square feet of leasing and 93.2% year-end leased occupancy.
SL Green completed the acquisition of 500 Park (now 100% occupied) and bought out its partner at 100 Park (now 97% leased); improvement programs are expected to drive rents higher, with 500 Park's yield increasing from 6.8% at acquisition to 7.2% currently.
The company is on track with its $1 billion disposition target for the year, has not seen a drop-off in foreign investor demand, and continues to pursue office-to-residential conversions, particularly downtown and on Third Avenue, with management projecting over 25 million square feet of office space eventually converting to residential use in NYC.

Recent Transcripts

Q1 earnings exceeded expectations, driven by strong debt business and active leasing.

SL Green delivered strong leasing, high occupancy, and outperformed FFO guidance, driving optimism for 2025.

Jan 23

Q4 2024

Leasing Activity

3.6M sq ft, 3rd highest ever

Occupancy

92.5% year-end, >93% projected

Income Statement

Revenue

	2020	2021	2022	2023	2024
Revenue	$1.1B	$861M	$827M	$914M	$886M
Cost of Revenue	$389M	$366M	$431M	$478M	$128M
Gross Profit	$664M	$496M	$396M	$436M	$758M
Gross Profit %	63%	58%	48%	48%	86%
R&D Expenses	$0	$0	$0	$0	$0

2020

2021

2022

2023

2024

Revenue

$1.1B

$861M

$827M

$914M

$886M

Cost of Revenue

$389M

$366M

$431M

$478M

$128M

Gross Profit

$664M

$496M

$396M

$436M

$758M

Gross Profit %

63%

58%

48%

86%

R&D Expenses

Cash Flow

Net Income

	2020	2021	2022	2023	2024
Net Income	$378M	$457M	-$74M	-$599M	$0
Dep. & Amort.	$325M	$228M	$216M	$256M	$0
Def. Tax	$0	$0	$0	$0	$0
Stock Comp.	$0	$0	$0	$0	$0
Chg. in WC	$79M	-$120M	-$40M	$2.9M	$0

Balance Sheet

Cash

	2020	2021	2022	2023	2024
Cash	$266M	$251M	$203M	$222M	$184M
ST Investments	$29M	$35M	$11M	$9.6M	$23M
Cash & ST Inv.	$295M	$286M	$215M	$231M	$207M
Receivables	$382M	$325M	$320M	$310M	$310M
Inventory	$0	$0	$0	$0	$0

2020

2021

2022

2023

2024

Cash

$266M

$251M

$203M

$222M

$184M

ST Investments

$29M

$35M

$11M

$9.6M

$23M

Cash & ST Inv.

$295M

$286M

$215M

$231M

$207M

Receivables

$382M

$325M

$320M

$310M

Inventory

Go Deeper

Financial information provided by Financial Modeling Prep. Options data provided by Unusual Whales. Live transcripts provided by Quartr. Reported revenue and EPS data from Earnings powered by FinChat.io. All data is provided for informational purposes only, and is not intended for trading purposes or financial, investment, tax, legal, accounting or other advice. · See all tickers.

Overview
Latest News
Earnings
Income Statement
Cash Flow
Balance Sheet
Related

Earnings

Report Date

Apr 16, 2025

Reported Revenue

144.5M

Miss -8.62%

Avg 1d Change

1.77%

Report Period

Q1 2025

Reported EPS

1.4

Beat +10.24%

Implied Move 1d

4.43%

Transcript

13m 17s

13m 39s

14m 58s

16m 25s

17m 48s

In closing, I'd just like to say in uncertain times, SL Green shines. Thank you.

17m 58s

18m 22s

And our first question comes from Alexander Goldfarb of Piper Sandler.

18m 29s

20m 4s

20m 44s

22m 2s

And that I think over those three weeks gives a very good indicator of where why we feel you know, cautiously optimistic, but time will tell.

22m 12s

Thank you.

22m 14s

Thank you. Our next question comes from Nick Yulico of Scotiabank. Your line is open.

22m 29s

Hi, thanks.

22m 31s

22m 55s

24m 27s

25m 41s

But there's no I wouldn't relate this to what we saw previously. In prior years where there just was no activity.

25m 51s

26m 28s

27m 14s

27m 49s

All right. Thanks everyone.

27m 51s

Thank you. Our next question comes from Steve Sakwa of Evercore ISI. Your line is open.

28m 3s

28m 30s

30m 25s

31m 37s

31m 57s

33m

33m 14s

And, can't wait to launch out there publicly and get going.

33m 22s

34m 2s

34m 44s

35m 50s

36m 4s

Thank you.

36m 6s

Thank you. And our next question comes from John Kim of BMO Capital Markets. Your line is open.

36m 18s

Thank you. I wanted to ask about a couple of your objectives for the year, which, includes 2,000,000 square feet of leasing and 93.2% year end leased occupancy.

36m 29s

So in the first quarter, you're ahead of the pace, but occupancy did go down.

36m 34s

And I'm wondering just given all the uncertainty in the markets today, if you still feel comfortable with those targets.

36m 42s

We're comfortable Our budget our living budget at the moment in excess of 2,000,000 feet. That's as of like an hour ago.

36m 53s

38m 17s

39m 37s

So that one I don't think had a mark to market calculation because it was it was filling vacant space at the time of acquisition.

39m 44s

But I can tell you that the rent that we signed on that lease was $10 a foot higher than the prior sponsor was asking for the space the day before we acquired the building.

39m 59s

And where does the yield go to? Compared to the $6.08 that you bought it at?

40m 4s

We sit today at about a 7.2%. That 6.8% you referenced from our investor conference is now 7.2%. Got it. Thank you.

40m 14s

Thank you. Our next question comes from Ronald Kamdem of Morgan Stanley. Your line is open.

40m 24s

Two quick ones for me. Just starting on the disposition targets of $1,000,000,000 just how are you thinking about sort of that? What are you seeing in the markets? Thanks.

40m 35s

41m 2s

Just demonstrating that our portfolio is liquid and investable in even the toughest of markets that you can imagine.

41m 9s

41m 21s

41m 41s

42m 32s

Thank you. Our next question comes from Blaine Heck of Wells Fargo. Your line is open.

42m 44s

Great, thanks.

42m 44s

43m 3s

43m 43s

44m 6s

We haven't seen it yet.

44m 9s

Would note countering what you just mentioned is the weaker US dollar. One thing that we experienced in '23 and '24 was the US dollar moving against us for those two years.

44m 21s

45m 10s

45m 32s

So we'll more more to come on that on the next call, but, we've not seen any drop off of interest there.

45m 43s

Very helpful.

45m 46s

Thank you. Our next question comes from Omotayo of Okusanya of Deutsche Bank. Your line is open.

46m

46m 32s

Oh, can can you hear me?

46m 33s

Now, yes. Now we can.

46m 35s

47m 4s

47m 27s

47m 58s

48m 25s

49m 34s

Thank you.

49m 37s

Thank you. Our next question comes from Seth Berge of Citi. Your line is open.

49m 48s

49m 59s

Yeah, we've seen a market change in tour activity and some early proposals that are on the table right now.

50m 10s

50m 42s

Thanks. And then just on the summit, kind of what percent of visits are international visitors? And then kind of can you talk a little bit about what the booking window looks like for that?

50m 53s

51m 17s

Like local.

51m 18s

It's like a third local. It's like two third tourism. Within that tourism break, I mean, the preponderance is domestic.

51m 28s

But you know, when I go up there, you know, feels to me like almost 35%, 40% is foreign tourists. I don't have good stats on it. Does anyone else have?

51m 39s

Here?

51m 41s

A lot of repeats. Yeah.

51m 44s

Yeah.

51m 44s

52m 19s

But, you know, a good balance and we see no drop off in any demand or change in composition through the first quarter.

52m 35s

Thanks.

52m 37s

Thank you. Our next question comes from Vikram Malhotra of Mizuho. Your line is open.

52m 47s

53m

54m 30s

And, it's gonna be in the spirit of what we have upstairs, but very different very unique.

54m 38s

I think a nod towards, Parisian abstraction [indiscernible] you know, I am really excited to be able to cut that ribbon in twenty seven.

54m 50s

55m 13s

56m 12s

Thank you.

56m 17s

Our next question comes from Peter Abramowitz of Jefferies. Your line is open. Peter, your line is open.

56m 30s

56m 54s

Yeah, sure.

56m 55s

57m 22s

All right. That's all for me. Thanks.

57m 25s

Thank you. This concludes our question and answer session. I'd like to turn it back to Mark Holliday for closing remarks.

57m 33s

58m 4s

58m 19s

This concludes today's conference call. Thank you for participating and you may now disconnect.

Key Insights

SL Green's Q1 earnings exceeded both internal and Street expectations, driven by strong NOI, robust leasing results, and significant profits from debt-related businesses; management expects debt-related earnings to be a growing profit contributor and is already at the higher end of guidance, with potential for upward revision next quarter.
The company has closed nearly $200 million in DPE investments in the past nine months and is actively negotiating a pipeline of over $1.2 billion in new debt investments; management emphasized that the debt platform is a core, recurring part of SL Green's business.
Leasing activity remains strong with a current pipeline of 1.1 million square feet and no slowdown observed despite recent macro volatility; management remains confident in achieving its target of 2 million square feet of leasing and 93.2% year-end leased occupancy.
SL Green completed the acquisition of 500 Park (now 100% occupied) and bought out its partner at 100 Park (now 97% leased); improvement programs are expected to drive rents higher, with 500 Park's yield increasing from 6.8% at acquisition to 7.2% currently.
The company is on track with its $1 billion disposition target for the year, has not seen a drop-off in foreign investor demand, and continues to pursue office-to-residential conversions, particularly downtown and on Third Avenue, with management projecting over 25 million square feet of office space eventually converting to residential use in NYC.

SL Green Realty Corp. Price & Performance (SLG)

Stock Performance

Open

Market Cap

Year High

High

P/E Ratio

Year Low

Low

Dividend Yield

Volume

Latest News

What's Happening

Peers

Earnings

Report Date

Reported Revenue

Avg 1d Change

Report Period

Reported EPS

Implied Move 1d

Transcript

Key Insights

Recent Transcripts

Income Statement

Cash Flow

Balance Sheet

Go Deeper

Related

Go Deeper

Latest News

Recent Transcripts

Earnings

Report Date

Reported Revenue

Avg 1d Change

Report Period

Reported EPS

Implied Move 1d

Transcript

Key Insights