High Interest Rates and Challenging Office Environment Will Weigh on Highly Leveraged SL Green

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 its properties are in Manhattan. The company holds 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 example, the company's $3 billion megaproject One Vanderbilt was completed amid the pandemic and has already achieved high occupancy rates.