SL Green Realty Q2 FFO falls on commercial mortgage investment

Overview

• US office landlord's Q2 net loss widened year-over-year

• Q2 FFO per share fell from prior year, which included a large one-time gain

• Company raised 2026 FFO and net income guidance, citing higher NOI and One Vanderbilt income

Outlook

• SL Green raises 2026 FFO guidance to $5.60-$5.90 per share from $4.40-$4.70 per share

• Company lifts 2026 net income guidance to $0.20-$0.50 per share from $(0.27)-$0.03 per share

• SL Green expects Manhattan same-store office occupancy to reach 95.0% by Dec. 31, 2026

Result Drivers

• HIGHER RENTAL INCOME - Manhattan same-store cash NOI rose 4.3% in Q2, driven by higher rental revenue and improved occupancy

• LEASING SPREADS - Signed Manhattan office leases in Q2 at rents 18% above previous fully escalated rents on same spaces

• OCCUPANCY GAINS - Manhattan same-store office occupancy increased to 94.7% as of June 30, 2026, inclusive of leases signed but not yet commenced

Company press release: ID:nGNX5MnfTK

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 8 "strong buy" or "buy", 8 "hold" and 1 "sell" or "strong sell"

• The average consensus recommendation for the commercial reits peer group is "buy"

• Wall Street's median 12-month price target for SL Green Realty Corp is $52.00, about 2.3% above its July 21 closing price of $50.82

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)