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Sl Green Realty Corp. (SLG)
NYSE:SLG
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SL Green Realty
(NYSE:SLG)54Neutral
Positive Factors
Financial Performance
SL Green Realty delivered better-than-expected results in 2024 and achieved several key objectives which keeps the company on offense in 2025.
Leasing Activity
SL Green has signed Manhattan office leases totaling 455,008 square feet, while maintaining a current pipeline of approximately 975,000 square feet.
Negative Factors
Adjusted Funds from Operations
In the short-term, leasing is expensive and a drag on adjusted funds from operations.
SL Green Realty (SLG) vs. S&P 500 (SPY)
Market Cap
$4.52B
Dividend Yield5.03%
Average Volume (3M)745.59K
Price to Earnings (P/E)760.9
Beta (1Y)2.08
Revenue Growth5.12%
EPS GrowthN/A
CountryUS
Employees1,221
SectorReal Estate
Sector Strength72
IndustryREITs
Share Statistics
EPS (TTM)0.05
Shares Outstanding71,004,560
10 Day Avg. Volume799,734
30 Day Avg. Volume745,589
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)4.79
Price to Cash Flow (P/CF)18.30
P/FCF Ratio17.80
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$73.14Price Target Upside18.04% Upside
Rating ConsensusHold
Number of Analyst Covering14
SL Green Realty Business Overview & Revenue Model
Company DescriptionSL Green Realty Corp. (SLG) is a real estate investment trust (REIT) that primarily focuses on acquiring, managing, and maximizing the value of commercial properties in New York City. As one of Manhattan's largest office landlords, SL Green owns interests in a diverse portfolio of office buildings, retail spaces, and development properties. The company seeks to provide high-quality work environments for businesses, offering prime locations with modern amenities and sustainable building practices.
How the Company Makes MoneySL Green Realty Corp. generates revenue primarily through leasing office and retail spaces within its extensive property portfolio. The company earns rental income from long-term lease agreements with tenants, which are typically corporate entities seeking prestigious office locations in New York City. Additionally, SL Green may engage in property sales and joint ventures, which can provide capital gains and additional income streams. The company also invests in debt and preferred equity arrangements, generating interest income. These revenue streams are supported by SL Green's strategic acquisitions, property management expertise, and its ability to enhance property value through renovations and development projects.
SL Green Realty Financial Statement Overview
Summary
SL Green Realty shows mixed financial performance with strong operational efficiency and a stable balance sheet with low leverage. However, declining revenues, low net profit margins, and negative free cash flow growth indicate challenges in profitability and cash flow management.Income Statement
The revenue for SL Green Realty in the TTM period decreased by 1.44% compared to the previous year, indicating a slight decline. Gross Profit Margin is at 52.73%, reflecting a relatively healthy profitability level. However, the Net Profit Margin stands at a low 2.75%, suggesting weak bottom-line performance. EBIT and EBITDA margins are 27.05% and 54.88% respectively, indicating decent operational efficiency. Overall, while there are positive aspects in operational profitability, the revenue decline and low net profit margin are concerns.55
Neutral
Balance Sheet
The Debt-to-Equity Ratio is 0.23, which is relatively low, indicating prudent financial leverage. Return on Equity (ROE) is a modest 0.63%, reflecting low profitability relative to shareholder equity. The Equity Ratio is 37.79%, suggesting a stable capital structure. Overall, the balance sheet presents a stable financial position with low leverage, but improvement in profitability is needed.60
Neutral
Cash Flow
The Free Cash Flow to Net Income Ratio is negative, indicating challenges in converting income into cash flow. Operating Cash Flow to Net Income Ratio is 2.69, which shows strong cash flow generation relative to net income. However, the Free Cash Flow has significantly decreased compared to the previous year, highlighting potential cash flow management issues. Overall, cash flow generation is robust, but sustainability and growth are concerns.45
Neutral
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 886.27M | 913.71M | 826.74M | 843.99M | 1.05B | Gross Profit |
| 758.09M | 435.55M | 487.50M | 497.45M | 664.19M | EBIT |
| 672.90M | -719.04M | 112.63M | 95.05M | 161.25M | EBITDA |
| 409.61M | -206.38M | 327.93M | 311.92M | 839.86M | Net Income Common Stockholders |
| 30.65M | -557.30M | -165.78M | 457.06M | 379.80M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 207.11M | 231.41M | 214.51M | 286.17M | 294.63M | Total Assets |
| 10.46B | 9.53B | 12.36B | 11.07B | 11.71B | Total Debt |
| 5.11B | 4.42B | 6.51B | 4.97B | 5.42B | Net Debt |
| 4.93B | 4.20B | 6.31B | 4.72B | 5.15B | Total Liabilities |
| 5.90B | 5.27B | 7.26B | 5.75B | 6.21B | Stockholders Equity |
| 3.95B | 3.79B | 4.76B | 4.96B | 4.91B |
| Cash Flow | Free Cash Flow | |||
| 0.00 | 229.50M | -24.68M | -46.51M | 96.10M | Operating Cash Flow |
| 0.00 | 229.50M | 276.09M | 255.98M | 554.24M | Investing Cash Flow |
| 0.00 | 171.34M | 425.81M | 993.58M | 1.06B | Financing Cash Flow |
| -252.23M | -449.38M | -654.82M | -1.29B | -1.48B |
SL Green Realty Technical Analysis
Negative
61.96
Price Trends
64.77
Negative
69.69
Negative
64.83
Negative
Market Momentum
-1.08
Positive
43.06
Neutral
21.42
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SLG, the sentiment is Negative. The current price of 61.96 is below the 20-day moving average (MA) of 63.62, below the 50-day MA of 64.77, and below the 200-day MA of 64.83, indicating a bearish trend. The MACD of -1.08 indicates Positive momentum. The RSI at 43.06 is Neutral, neither overbought nor oversold. The STOCH value of 21.42 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SLG.
SL Green Realty Risk Analysis
SL Green Realty disclosed 36 risk factors in its most recent earnings report. SL Green Realty reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
SL Green Realty Peers Comparison
Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $4.86B | 97.19 | 0.98% | 4.41% | 6.71% | -45.29% | |
68 Neutral | $1.42B | 29.99 | 5.12% | 1.65% | 3.83% | -5.55% | |
64 Neutral | $14.58B | 907.36 | 1.32% | 1.94% | -1.30% | -80.81% | |
61 Neutral | $4.91B | 18.99 | -3.12% | 7.77% | 6.71% | -19.69% | |
60 Neutral | $11.60B | 737.50 | 0.23% | 5.88% | 4.10% | -92.47% | |
54 Neutral | $4.52B | 760.94 | 0.71% | 5.03% | 5.12% | ― | |
52 Neutral | $438.35M | ― | -11.53% | 3.31% | -11.47% | -89.12% |
* Real Estate Sector Average
Performance Comparison
SLG
SL Green Realty
61.96
13.98
29.14%
BXP
Boston Properties
69.00
8.76
14.54%
CUZ
Cousins Properties
29.20
6.75
30.07%
HPP
Hudson Pacific Properties
3.15
-3.41
-51.98%
VNO
Vornado Realty
39.75
14.48
57.30%
ESRT
Empire State Realty
8.54
-1.14
-11.78%
SL Green Realty Earnings Call Summary
Earnings Call Date: Jan 22, 2025 | % Change Since: -7.05% | Next Earnings Date: Apr 16, 2025
Earnings Call Sentiment Positive
The earnings call conveyed a positive outlook for SL Green Realty Corp., highlighting strong leasing activity, successful fund closings, and positive market dynamics in New York City. However, some concerns were raised regarding financial occupancy and CapEx commitments. Overall, the positive aspects and achievements appeared to outweigh the challenges mentioned.Highlights
Strong Leasing Performance
Achieved 188 leasing deals totaling 3.6 million square feet, marking the third highest leasing year ever for the company.
Occupancy and Leasing Pipeline
Ended the year at 92.5% occupancy with projections to exceed 93% leased occupancy in the coming year. Maintained a strong leasing pipeline with 900,000 square feet, despite having recently leased 250,000 square feet.
Successful Debt Fund Closing
Closed an opportunistic debt fund rapidly and expect to round it out to over $1 billion in the first half of the year.
Significant Tenant Expansions
IBM expanded by 33% to 93,000 square feet at One Madison, and Ares increased their space by over 10% at 245 Park.
Positive Market Dynamics
New York City's economic success with job creation and rising on-site attendance is expected to drive strong demand for office space throughout 2025.
Record-Breaking Year for Summit One Vanderbilt
Summit One Vanderbilt had over 2.25 million visitors during the year, contributing significant profits.
Lowlights
Occupancy vs. Financial Occupancy Discrepancy
While leased occupancy increased, financial occupancy decreased across several assets due to move-outs and the time needed to build out space for new leases.
CapEx and FAD Concerns
Guidance shows significant CapEx commitments affecting funds available for distribution, with uncertainties around when it might normalize and fully cover dividends.
Company Guidance
During the SL Green Realty Corp. Q4 2024 earnings call, CEO Marc Holliday highlighted the company's robust performance and optimistic outlook for 2025. The company achieved 188 leasing deals totaling 3.6 million square feet, marking its third-highest leasing year. SLG ended the year with a 92.5% occupancy rate and projects over 93% leased occupancy in the coming year. The company closed an opportunistic debt fund in December, expecting it to exceed $1 billion in the first half of 2025. Notably, SLG announced significant expansions with IBM and Ares, reflecting strong tenant demand. Holliday emphasized the tightening market for trophy buildings in New York City, with a vacancy rate of 6.7%, down 200 basis points from Q3 2025. He also highlighted the city's economic strength, with 38,000 new office-using jobs projected for 2025, contributing to strong office space demand. The call underscored SLG's strategic focus on development and hospitality expansion, including a new Summit location in Paris and culinary collaborations.SL Green Realty Corporate Events
Private Placements and FinancingBusiness Operations and StrategyFinancial Disclosures
SL Green Realty Reports Strong Q4 2024 Financial Turnaround
Positive
Jan 23, 2025
SL Green Realty Corp. reported a significant turnaround in its financial results for the fourth quarter of 2024, achieving a net income of $0.13 per share compared to a net loss of $2.45 per share in the same period in 2023. The company’s funds from operations (FFO) also saw a substantial increase, reaching $1.81 per share, aided by gains from discounted debt extinguishment and fair value adjustments on derivatives. The company’s leasing activity was robust, with a 9.0% increase in mark-to-market rates for Manhattan office leases in the fourth quarter. Investments included the sale of an 11.0% interest in One Vanderbilt Avenue, generating significant proceeds, and acquisitions in prime Manhattan locations, further solidifying SL Green’s position in the market. Additionally, the company completed $5.3 billion in strategic debt refinancings and extensions, enhancing its financial flexibility.
Executive/Board ChangesBusiness Operations and Strategy
SL Green Realty Extends CEO Marc Holliday’s Term
Positive
Dec 31, 2024
SL Green Realty has extended Marc Holliday’s term as Chief Executive Officer and Chairman for an additional three and a half years until July 2028. The new agreement includes annual awards, performance-based incentives, and a potential casino bonus, reflecting the company’s commitment to retain leadership and drive strategic initiatives. The extension is pivotal for SL Green’s continuity and strategic positioning, with potential impacts on its operations and stakeholder alignment.
DividendsFinancial Disclosures
SL Green Realty Announces Dividend Increase and Returns
Positive
Dec 9, 2024
SL Green Realty Corp., Manhattan’s largest office landlord, announced a 3% increase in its annual ordinary dividend to $3.09 per share for 2025, paid monthly in cash. This move reflects the company’s growth in earnings and taxable income, driven by a strong office market. Additionally, the board declared a quarterly dividend on its Series I Preferred Stock, showcasing a commitment to providing sustainable returns to shareholders.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.