SL Green Realty stock holds Overweight rating at Piper Sandler ahead of Q2

Investing.com - Piper Sandler has reiterated its Overweight rating on SL Green Realty (NYSE:SLG) in its second-quarter 2025 preview. The stock, currently trading at $60.88, offers a 5.08% dividend yield and has delivered a 14.22% return over the past year.

The stock has declined 3.8% since Friday, June 20, underperforming compared to the broader REIT sector’s 0.2% gain and the SNL Office Index’s 0.4% increase during the same period. According to InvestingPro, SLG has maintained dividend payments for 29 consecutive years, demonstrating remarkable consistency despite its beta of 1.64 indicating higher market volatility.

Piper Sandler attributes the recent underperformance to investor concerns following the New York City mayoral Democratic primary winner and his socialist policy platform.

The research firm notes that while the mayoral candidate can influence local policies, tax authority remains with the state legislature in Albany, where concerns about potential tax increases and corporate departures could mirror socialist rhetoric.

Piper Sandler emphasizes that wealthy taxpayers contribute approximately half of New York state’s tax revenue, making their retention critical for the state’s $254 billion budget, compared to Florida’s $118 billion budget serving a larger population.

In other recent news, SL Green Realty has seen a series of significant developments. Evercore ISI raised its price target for SL Green Realty to $74 from $66, maintaining an Outperform rating. This adjustment follows discussions with the company’s CFO about the Manhattan office leasing market and future projects, including a pending casino license. Meanwhile, Piper Sandler has reiterated its Overweight rating with a $72 price target, highlighting the competitive market for premium office space in Midtown Manhattan. Recent political developments in New York City have also impacted SL Green Realty, as the Democratic mayoral primary win by Zohran Mamdani raised concerns about potential rent control policies. Despite these challenges, Piper Sandler remains optimistic about SL Green’s market position, citing the scarcity of prime office space. Additionally, SL Green Realty held its Annual Meeting of Stockholders, where eight directors were elected and several key proposals were approved, including executive compensation and the appointment of Deloitte & Touche LLP as the company’s independent auditor. The meeting showed strong shareholder support, with high approval rates for the proposals presented.

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