SL Green Earnings: Mixed Results as Quarterly FFO Buoyed by Nonrecurring Gains; Shares Are Rich

No-moat-rated SL Green Realty reported a mixed set of numbers for the first quarter. The headline numbers were lifted by nonrecurring gains related to discounted debt extinguishment, but there were some signs of stabilization for the Manhattan office market (although the firm is certainly not out of the woods yet). The company reported funds from operations, or FFO, of $3.07 per share, almost double the $1.53 per share in FFO generated during the first quarter of 2023. The headline FFO number included a gain of $141.7 million, or $2.02 per share, tied to discounted debt extinguishment at 2 Herald Square and another gain of $5.1 million, or $0.07 per share, from positive noncash fair value adjustments for mark-to-market derivatives.