SL Green raises 2025 FFO guidance after strong debt portfolio performance

Published 16/07/2025, 21:46
 SL Green raises 2025 FFO guidance after strong debt portfolio performance

NEW YORK - SL Green Realty Corp. (NYSE:SLG) reported a narrower-than-expected second quarter loss on Wednesday, as the Manhattan office landlord benefited from significant income from its debt and preferred equity portfolio. The company’s stock rose 1.3% following the earnings announcement.

The real estate investment trust posted a net loss attributable to common stockholders of $0.16 per share for the second quarter, better than analysts’ expectations of a $0.21 per share loss. However, this represented a wider loss compared to the $0.04 per share loss reported in the same period last year. Revenue came in at $147.54 million, below the consensus estimate of $157.96 million.

Funds from operations (FFO), a key metric for REITs, reached $1.63 per share for the quarter, which included $0.61 per share of income related to the repayment of a commercial mortgage investment at 522 Fifth Avenue. This was offset by $0.19 per share of investment reserves and $0.02 per share of negative non-cash fair value adjustments. In the same quarter last year, the company reported FFO of $2.05 per share.

Based on the strong performance of its debt portfolio, SL Green 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. The company maintained its 2025 net income guidance range of $1.27 to $1.57 per share.

The company signed 46 Manhattan office leases totaling 541,721 square feet during the quarter, with an average rent of $90.03 per square foot. The mark-to-market on signed Manhattan office leases was 2.4% higher than previous fully escalated rents on the same spaces.

Same-store cash net operating income decreased by 1.0% for the second quarter compared to the same period in 2024, excluding lease termination income. Manhattan same-store office occupancy was 91.4% as of June 30, 2025, and the company expects to increase this to 93.2% by the end of the year.

During the quarter, SL Green’s commercial mortgage investment in 522 Fifth Avenue, which had a carrying value of $125.0 million, was repaid for $200.0 million, generating net proceeds of $196.6 million.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.