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1. Company Snapshot

1.a. Company Description

SL Green Realty Corp., an S&P 500 company and Manhattan's largest office landlord, is a fully integrated real estate investment trust, or REIT, that is focused primarily on acquiring, managing and maximizing value of Manhattan commercial properties.As of December 31, 2020, SL Green held interests in 88 buildings totaling 38.2 million square feet.This included ownership interests in 28.6 million square feet of Manhattan buildings and 8.7 million square feet securing debt and preferred equity investments.

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1.b. Last Insights on SLG

SL Green Realty Corp.'s recent performance was negatively impacted by a lower 2026 outlook and dividend shift due to rising costs, vacancies, and asset sales. The company's Q4 2025 earnings revealed a decline in funds from operations (FFO) per share to $1.13 from $1.81 a year ago. However, same-store occupancy rose 60 basis points to 93.0% as demand for Class A Manhattan office space grows. The company also signed 32 Manhattan office leases totaling 491,098 square feet in the first two months of 2026.

1.c. Company Highlights

2. SL Green Realty Corp's Strong Q4 2025 Earnings: A Closer Look

SL Green Realty Corp reported a strong Q4 2025 earnings, with an EPS of $1.13, beating analyst estimates of $1.1. The company's operating metrics exceeded expectations, driven by higher NOI due to lower expenses and a solid fourth quarter from the hospitality business. The FFO beat was 2¢ a share, and the company beat its initial guidance by $65 million, with almost $20 million of that happening in the fourth quarter alone.

Publication Date: Feb -18

📋 Highlights
  • FFO Beat:: Exceeded expectations by 2¢ per share, driven by $20M in Q4 NOI gains and $65M annual guidance beat.
  • Leasing Volume:: Secured 800,000 sq ft in Q4, totaling 2.6M sq ft annually and 8M sq ft over three years.
  • Same-Store Occupancy:: Achieved 93% occupancy, nearing 94.8% target, with high occupancy rates (95%+) in key properties.
  • Capital Markets Momentum:: Executing $7B financing strategy amid tight credit markets, with Rockpoint 100 Park deal closed at a premium.
  • AI-Driven Demand:: 13 AI-related deals exceeding 200,000 sq ft, with tenants expanding rather than downsizing due to efficiency gains.

Leasing and Occupancy

The company's leasing front saw a banner year, with almost 800,000 square feet of Manhattan office leasing in the quarter, bringing the annual total to 2,600,000 square feet and the three-year total to almost 8,000,000 feet. The company's same-store leased occupancy objective was met, albeit a couple of weeks later than expected, at 93%. As Marc Holliday mentioned, "the leasing trajectory in 2024 will contribute more to the gain than asset sales."

Valuation Metrics

Looking at the valuation metrics, SL Green Realty Corp's P/E Ratio stands at -31.56, indicating that the company is not profitable on a trailing twelve-month basis. However, the Dividend Yield is 7.81%, which is attractive for income-seeking investors. The P/B Ratio is 0.72, suggesting that the company's stock may be undervalued relative to its book value. The EV/EBITDA ratio is 23.55, which is relatively high, indicating that the company's enterprise value is high relative to its EBITDA.

Growth Prospects

The company's growth prospects appear promising, driven by its strong leasing activity and occupancy rates. As Marc Holliday noted, "the company is poised for growth and earnings growth." The company's Asian adventure was productive, with meetings with debt and equity capital sources, investors, buyers, sellers, asset managers, and sovereigns, indicating a strong appetite to invest in New York City real estate.

Dividend Policy

Regarding the dividend, Marc Holliday stated that FAD and dividend are unrelated topics, and that the board will take a holistic look at the company's performance when setting the dividend policy. The company's dividend policy is based on a long-term view of its business, rather than focusing on a single metric.

3. NewsRoom

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SL Green Reaches 100% Leased at the Transformative One Madison Avenue, Projects Record-Breaking First Quarter Office Leasing Across Portfolio

Mar -09

Source: globenewswire.com

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SL Green Realty: Pending Dividend Cut As Occupancy Ramps Higher

Mar -05

Source: seekingalpha.com

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San Lorenzo Gold Announces Closing of $20 Million Private Placements

Mar -05

Source: thenewswire.com

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SL Green Realty Corp. (SLG) Presents at Citi's Miami Global Property CEO Conference 2026 Transcript

Mar -02

Source: seekingalpha.com

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SL Green Promotes Harrison Sitomer to President and Chief Investment Officer

Mar -02

Source: globenewswire.com

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SL Green Signs Office Leases Totaling 490,000 Square Feet During the First Two Months of 2026

Mar -02

Source: globenewswire.com

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SL Green and Jeff Sutton Sell 690 Madison Avenue

Mar -02

Source: globenewswire.com

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San Lorenzo Gold Announces Additional Proposed Private Placement

Feb -23

Source: thenewswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.35%)

6. Segments

Real Estate

Expected Growth: 4.5%

Driven by NYC’s strong office market, SL Green Realty Corp’s commercial properties growth is fueled by rising demand and limited supply

Summit

Expected Growth: 3.5%

Driven by strong demand for office space in New York City, SL Green Realty Corp’s commercial property portfolio benefits from its prime locations

Debt and Preferred Equity

Expected Growth: 4.5%

SL Green Realty Corp’s debt and preferred equity investments driven by strong property market, increasing demand for office and residential spaces

7. Detailed Products

Office Buildings

SL Green Realty Corp. owns and manages a portfolio of office buildings in New York City, providing commercial spaces for businesses to operate.

Retail Properties

SL Green Realty Corp. also owns and operates a range of retail properties, including shopping centers, restaurants, and other retail spaces.

Development Services

SL Green Realty Corp. offers development services, including construction, renovation, and redevelopment of properties.

Property Management

SL Green Realty Corp. provides property management services, including leasing, marketing, and maintenance of properties.

Investment and Financing

SL Green Realty Corp. offers investment and financing solutions for real estate projects and acquisitions.

8. SL Green Realty Corp.'s Porter Forces

Forces Ranking

Threat Of Substitutes

SL Green Realty Corp. operates in the real estate industry, where substitutes are limited. The company's focus on commercial properties in New York City reduces the threat of substitutes, as tenants have limited alternatives for high-quality office and retail space.

Bargaining Power Of Customers

While SL Green Realty Corp. has a diverse tenant base, some large tenants may have significant bargaining power due to their size and lease terms. However, the company's strong market position and high-quality properties mitigate this risk.

Bargaining Power Of Suppliers

SL Green Realty Corp. has a strong market position, which reduces the bargaining power of suppliers. The company can negotiate favorable terms with contractors, architects, and other suppliers due to its scale and reputation.

Threat Of New Entrants

The barriers to entry in the New York City commercial real estate market are high, making it difficult for new entrants to compete with established players like SL Green Realty Corp. The company's strong brand, extensive network, and significant resources deter new entrants.

Intensity Of Rivalry

The New York City commercial real estate market is highly competitive, with several large and well-established players competing for tenants and properties. SL Green Realty Corp. faces intense rivalry from companies like Vornado Realty Trust, Boston Properties, and Related Companies, which can lead to downward pressure on rents and upward pressure on property prices.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 53.38%
Debt Cost 4.05%
Equity Weight 46.62%
Equity Cost 12.44%
WACC 7.96%
Leverage 114.51%

11. Quality Control: SL Green Realty Corp. passed 1 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
COPT Defense

A-Score: 6.3/10

Value: 4.5

Growth: 4.7

Quality: 5.7

Yield: 8.0

Momentum: 5.0

Volatility: 10.0

1-Year Total Return ->

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Stock-Card
Boston Properties

A-Score: 5.4/10

Value: 5.7

Growth: 3.2

Quality: 4.1

Yield: 8.0

Momentum: 4.0

Volatility: 7.3

1-Year Total Return ->

View Full Report
Stock-Card
Alexandria Real Estate Equities

A-Score: 5.3/10

Value: 7.3

Growth: 4.6

Quality: 4.7

Yield: 9.0

Momentum: 0.5

Volatility: 5.7

1-Year Total Return ->

View Full Report
Stock-Card
Vornado Realty

A-Score: 5.2/10

Value: 7.4

Growth: 2.2

Quality: 6.6

Yield: 6.0

Momentum: 3.5

Volatility: 5.3

1-Year Total Return ->

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Stock-Card
Douglas Emmett

A-Score: 4.9/10

Value: 4.7

Growth: 4.6

Quality: 3.3

Yield: 9.0

Momentum: 1.5

Volatility: 6.3

1-Year Total Return ->

View Full Report
Stock-Card
SL Green Realty

A-Score: 3.9/10

Value: 2.5

Growth: 0.9

Quality: 3.8

Yield: 9.0

Momentum: 2.0

Volatility: 5.3

1-Year Total Return ->

View Full Report

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

39.14$

Current Price

39.14$

Potential

-0.00%

Expected Cash-Flows