Rising Interest Rates Weigh on Highly Leveraged SL Green; Reducing Our Fair Value

SL Green is a real estate investment trust engaged in the acquisition, development, repositioning, ownership, and management of commercial real estate properties, principally office properties. Most of the companies' properties are in the Manhattan area. The company held interests in approximately 35 million square feet, which includes ownership interests in 26.7 million square feet in Manhattan buildings and 7.2 million square feet securing debt and preferred equity investments. The strategy of the company is to maintain a high-quality portfolio of buildings in desirable locations and focus on creating value through new developments, capital recycling, and joint-venture investments. As an instance, SL Green's $3 billion megaproject One Vanderbilt was completed amid the pandemic and has already achieved high occupancy rates.