SL Green Realty Corp. Delivers Strong Q3 with $0.34 EPS
Financial and Operating Highlights
SL Green Realty Corp. reported a net income attributable to common stockholders of $0.34 per share for its recent quarter, reversing from a loss of $0.21 per share in the previous year. The company also announced Funds from Operations (FFO) of $1.58 per share, which has seen a notable increase compared to last year’s $1.13 per share.
Leasing Achievements
In an impressive display of operational strength, SL Green signed 52 office leases in Manhattan during the third quarter, encompassing a total of 657,942 square feet. This brings the total to 143 leases amounting to over 1.8 million square feet in the first nine months of the year. While the average rent on these leases saw a slight decline, occupancy rates improved significantly.
Investment Activities
During this quarter, SL Green entered into an agreement to purchase Park Avenue Tower for $730 million. This strategic move aligns with the company’s goals to enhance its portfolio of premium properties. The acquisition is projected to close early next year, pending standard conditions.
Sale of Interest
The company also completed the sale of a 5% interest in One Vanderbilt Avenue for a gross valuation of $4.7 billion to Mori Building Co., Ltd., resulting in net proceeds of approximately $86.6 million. Additionally, SL Green has entered into an agreement to acquire another property at 346 Madison Avenue for $160 million, allowing for potential future growth through new development.
Financing Developments
SL Green’s proactive approach included successfully restructuring its mortgage on 11 Madison Avenue with a $1.4 billion fixed-rate refinancing. This effort not only lowers their interest expense but demonstrates the company’s commitment to optimizing financial strategies during evolving market conditions.
Debt Management
The company secured a significant debt extinguishment on a previous loan at 1552-1560 Broadway, resulting in a net gain of $57.2 million. This contributes positively to the company’s financial standing and facilitates future investment endeavors.
Special Servicing Growth
SL Green’s special servicing business has expanded, growing by $1.6 billion in active assignments. This brings the total portfolio to an impressive $7.7 billion, showcasing the trust and demand for SL Green’s expertise in managing complex real estate situations.
Outlook and Expectations
Looking towards the future, the company anticipates increasing its same-store office occupancy rate in Manhattan to 93.2% by year-end, which reflects a positive trend in market demand for leasing office spaces. Management expresses confidence in its strategies to enhance profitability and shareholder value going forward.
Frequently Asked Questions
What earnings did SL Green report for Q3 2025?
SL Green reported an earnings per share (EPS) of $0.34.
How did the Funds from Operations (FFO) change?
The FFO increased to $1.58 per share compared to $1.13 in the prior year’s quarter.
What new acquisitions did SL Green make?
SL Green entered into a contract to purchase Park Avenue Tower for $730 million.
How many leases were signed in Manhattan?
SL Green signed 52 leases during the third quarter of 2025, totaling 657,942 square feet.
What is the company’s strategy for future leasing?
SL Green aims to increase Manhattan same-store office occupancy to 93.2% by the end of this year.
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