Company Reports

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 firm holds interests in approximately 30.6 million square feet, which includes ownership interests in 24.0 million square feet in Manhattan buildings and 1.4 million square feet securing debt and preferred equity investments. The strategy of the firm 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.

SL Green reported funds from operations of $1.43 per share and a cash same-store net operating income growth of 4.3% for the second quarter. Shares were up by high single digits at market close on July 23.

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 firm holds interests in approximately 30.8 million square feet, which includes ownership interests in 24.0 million square feet in Manhattan buildings and 1.4 million square feet securing debt and preferred equity investments. The strategy of the firm 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.

SL Green reported funds from operations of $0.84 per share and cash same-store net operating income growth of 2.6% for the first quarter.

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 firm holds interests in approximately 31.4 million square feet, which includes ownership interests in 28.0 million square feet in Manhattan buildings and 2.7 million square feet securing debt and preferred equity investments. The strategy of the firm 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.

SL Green reported funds from operations of $1.13 per share and a cash same-store net operating income decline of 10.0% for the fourth quarter.

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 firm holds interests in approximately 31.8 million square feet, which includes ownership interests in 28.1 million square feet in Manhattan buildings and 2.8 million square feet securing debt and preferred equity investments. The strategy of the firm 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.

SL Green reported middling third-quarter results with $1.58 per share in funds for operations as leasing volumes stayed decent and occupancy rates improved. Shares remain highly volatile and have corrected by over 15% in the last month, as markets fret about the firm's leverage and portfolio.

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 firm holds interests in approximately 31.8 million square feet, which includes ownership interests in 28.1 million square feet in Manhattan buildings and 2.8 million square feet securing debt and preferred equity investments. The strategy of the firm 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.

SL Green saw good second-quarter results, with $1.63 per share in funds from operations, as leasing volumes stayed strong and occupancy rates rose. Shares rallied 25% from their mid-April lows as tariff and macroeconomic uncertainty eased, but the volatility reflects inherent risks in the outlook.

SL Green reported decent first-quarter results with $1.40 per share in funds from operations as leasing volumes and occupancy rates remained solid. The stock sold off considerably in recent months, anticipating macroeconomic weakness that will dent employment creation and affecting leasing volumes.

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 firm holds interests in approximately 31.8 million square feet, which includes ownership interests in 28.1 million square feet in Manhattan buildings and 2.8 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.

SL Green reported $1.81 per share in funds from operations during the quarter as occupancy improved materially on a sequential basis. Excluding the impact of nonrecurring gains, FFO is estimated to be around $1.35 per share.

Over the past few years, we have observed an inverse relationship between share prices in the REIT sector and interest-rate movements. We believe a major reason is that all commercial real estate valuations are connected to interest rates. Capitalization rates directly indicate the return expectations for a real estate investment and expectations for risk and growth. Historically, we have observed that commercial real trades at cap rates consistently spread above the 10-year US Treasury. If interest rates rise, investors will require a higher return, and thus a higher cap rate, to accept the risk associated with an investment in a real estate asset. Since return expectations have held relatively steady for most real estate sectors over the past few years, higher cap rates translate to falling prices for real estate.

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.

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 firm holds interests in approximately 31.8 million square feet, which includes ownership interests in 28.1 million square feet in Manhattan buildings and 2.8 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.

The REIT sector in the US offers many companies that should see relatively stable cashflow growth over the next several years. While the pandemic hurt REIT valuations in 2020, the recovery of fundamentals across most sectors combined with low interest rates led to strong total returns in 2021 and early 2022. However, despite fundamentals continuing to perform well over the past three years with many reaching historical levels of net operating income growth, the REIT sector underperformed the broader equity markets in 2023 and into the first half of 2024. We believe that is due to the sector’s negative correlation with interest rates, as income-oriented investors rotate out of the sector, higher rates lower the value REITs can create with external growth, and property valuations fall in line with higher rates. However, interest rates have fallen since the end of July, leading to a rally for the REIT sector. Still, we still view many of companies in the US REIT sector as being undervalued as the companies should continue to produce solid long-term growth.

Despite a rally over the past two months, we still view the US REIT sector as being undervalued. While the pandemic hurt REIT valuations in 2020, the recovery of fundamentals across most sectors led combined with low interest rates led to strong total returns in 2021 and early 2022. However, despite fundamentals continuing to perform well over the past three years, with many reaching historical levels of net operating income growth, the REIT sector has underperformed the broader equity markets in 2023 and into the first half of 2024. We believe that the cause has been due to the sector's negative correlation with interest rates as income-oriented investors rotate out of the sector, higher rates lower the value REITs can create with external growth, and property valuations fall in line with higher rates. However, interest rates have fallen since the end of July, leading to a rally for the REIT sector. We believe that US REITs will continue to see share price movements that are inverse of interest rate movements.

No-moat-rated SL Green Realty reported decent numbers in the second quarter as the Manhattan office portfolio holds up relatively well. Nonrecurring gains on discounted debt extinguishment lifted the headline numbers during the quarter. Given its high quality, the company’s Manhattan office market portfolio is performing much better than the market. Still, we want to emphasize that the sector is not out of the woods yet. The company reported funds from operations of $2.05 per share, up 43% compared with the $1.43 per share in FFO during the second quarter of 2023. The headline FFO number included $48.5 million, or $0.69 per share, of gains on discounted debt extinguishments. Excluding the impact of nonrecurring gains, the company’s core results were largely in line with our expectations.

SL Green Realty 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 31.8 million square feet, which includes ownership interests in 28.1 million square feet in Manhattan buildings and 2.8 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.