SL Green Realty stock holds steady as Truist reiterates $54 target

Published 17/07/2025, 11:50
SL Green Realty stock holds steady as Truist reiterates $54 target

Investing.com - Truist Securities has reiterated its Hold rating and $54.00 price target on SL Green Realty (NYSE:SLG) following the real estate investment trust’s recent earnings report. According to InvestingPro data, the stock currently trades at a high EBITDA multiple of 72.4x, suggesting potential overvaluation compared to peers.

The firm noted that while SL Green reported what appeared to be an FFO beat and guidance raise that initially drove shares higher in after-hours trading, the results contained $0.40 per share of net one-time gains not previously included in guidance.

Excluding these one-time items, Truist indicated the quarterly results represented a "sizable miss" versus both their expectations and consensus estimates, with the guidance increase effectively "zero" after management had previously suggested it was trending toward the higher end of its full-year range.

The analyst highlighted additional concerns including another small decline in same-store leased percentage, slowing national job growth, and the 10-year Treasury yield reaching its highest level in nearly two months.

Despite these challenges, Truist acknowledged that following weaker second-quarter results, bullish investors might focus on guidance that implies $2.77 per share of FFO at the midpoint for the second half of 2025, which exceeds the consensus estimate of $2.69 and Truist’s projection of $2.66.

In other recent news, SL Green Realty Corp. reported a narrower-than-expected second-quarter loss, thanks to significant income from its debt and preferred equity portfolio. The company posted a net loss of $0.16 per share, better than analysts’ projections of a $0.21 per share loss, but wider than the $0.04 per share loss from the same period last year. Revenue for the quarter was $147.54 million, falling short of the consensus estimate of $157.96 million. Funds from operations (FFO) reached $1.63 per share, including $0.61 per share from the repayment of a commercial mortgage investment at 522 Fifth Avenue. This was partially offset by investment reserves and negative non-cash fair value adjustments. The company raised its 2025 FFO guidance to a range of $5.65 to $5.95 per share, an increase of $0.40 per share at the midpoint. SL Green signed 46 Manhattan office leases during the quarter, with an average rent of $90.03 per square foot, marking a 2.4% increase over previous rents. The company’s Manhattan same-store office occupancy stood at 91.4% as of June 30, 2025, with expectations to rise to 93.2% by year-end.

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