SL Green Earnings: Manhattan Portfolio Occupancy Outlook Continues to Improve; Increasing Valuation

No-moat-rated SL Green Realty reported a middling set of numbers in the third quarter as the Manhattan office portfolio performed decently and declining interest rates auger well for the company’s funds from operations prospects in the long run. The company’s reported FFO was $1.13 per share, down 11% compared with the $1.27 per share in FFO during the third quarter of 2023. The headline numbers during the quarter were adversely impacted by $9.0 million, or $0.13 per share, from nonrecurring fair value adjustments on mark-to-market derivatives. Excluding the impact of nonrecurring losses, the company’s core results were flattish on a year-over-year basis.