SL Green Realty (SLG 0. Moreover, 41%), Manhattan’s largest office landlord, reported fiscal 2025 second-quarter earnings on Thursday, July 16, that topped consensus expectations. The loss per of $0.
16 was slightly better than analyst estimates. Furthermore, Fitability measured by funds from operations (FFO) per declined 20. 5% from the prior year as core metrics remained under pressure.
On the other hand, Overall, the quarter showed robust revenue and leasing momentum, but operating fit continued to lag prior-year results.
MetricQ2 2025Analysts' EstimateQ2 2024Change (YOY)EPS($0 (this bears monitoring). Meanwhile, 04)(300%)Adjusted FFO per $1, in today's financial world. 5%)Revenue$241.
9 million$160 (something worth watching). 4 million$222. 8 million8 (noteworthy indeed). 6%Same-store cash NOI, excl. Lease termination income$153. 3 million$154.
Furthermore, 8 million(1%)Manhattan same-store office occupancy91. 4 %N/ASource: SL Green Realty (an important development).
Note: Analyst consensus estimates vided by FactSet, in today's financial world. FFO = funds from operations, in today's market environment. NOI = Net operating income.
Overview and Key Success FactoL Green Realty owns and operates a portfolio of office perties concentrated in Manhattan, generating rental income from tenants and increasingly diversifying into fee-based and experiential es.
Nevertheless, Its centers on leasing office space, collecting rent, and strategically in both real estate and credit opportunities.
Nevertheless, The company's recent focus has been on maintaining high office occupancy, cycling capital through acquisitions and dispositions, and building complementary lines such as debt investments and special servicing.
Furthermore, Success is strongly tied to keeping offices filled, managing lease terms for maximum rental income, and making opportunistic investments.
At the same time, In recent years, SL Green Realty has sought to generate returns by buying, selling, or financing commercial real estate assets while also expanding offerings the SUMMIT observation deck to diversify revenue.
Quarter in Detail: Financial Performance and OperationsRevenue climbed to $241 (something worth watching), given the current landscape. 9 million, up 8. 6% from the previous year.
Moreover, The company closed this $125 million loan at $200 million, generating a $46. 6 million gain within FFO.
On the other hand, On the other hand, Despite higher revenue, FFO per -- considered a core fitability metric in real estate investment trusts (REITs) -- fell 20.
However, However, 5% year over year, in this volatile climate. The drop came as prior-year results had benefited from larger one-off gains related to discounted debt settlements and perty transactions.
This quarter’s FFO was also hit by negative adjustments in the value of financial derivatives, in today's financial world.
Meanwhile, net loss attributable to common holders (GAAP) widened to $11, in today's financial world. 1 million, compared with a $2. 2 million loss for Q2 2024.
Furthermore, Manhattan office leasing remained active with 46 new leases signed, totaling 541,721 square feet. The average new lease rate was $90.
03 per square foot, with tenant imvement allowances -- the funds vided to tenants to customize their offices -- averaging $78 (quite telling). 81 per square foot for Manhattan office leases signed.
Nevertheless, Moreover, The average free rent period granted on Manhattan office leases signed in the second quarter was 6. 3 months, and the average lease term was almost 8 years.
In total, 91 leases covering more than 1 (this bears monitoring), in today's financial world. 1 million square feet were finalized in the first half of 2025.
Moreover, Same-store cash net operating income edged down 1, amid market uncertainty. Moreover, 0% year over year, signaling that fitability remained under pressure.
One highlight for the quarter was the portfolio, which stood at $525. 4 million with a weighted average yield of 7 (remarkable data).
9% if excluding loans not currently paying interest) as of June 30, 2025.
Furthermore, These investments vided meaningful incremental income and supported management’s decision to raise full-year FFO guidance for 2025.
However, some asset sales, such as the 50% preferred equity interest in 625 Madison Avenue, were at modest discounts to book value (selling at 93, considering recent developments.
6% of carrying value as of June 30, 2025), highlighting continued asset valuation pressure in New York’s office market (fascinating analysis).
On the operational front, Manhattan same-store office occupancy, including leases signed but not yet commenced, stood at 91. This's slightly below the 92, in today's market environment.
On the other hand, 5% level at the end of December 2024, in today's financial world. Nevertheless, The company expects occupancy to imve to 93, considering recent developments.
2% by year-end, citing a strong leasing pipeline and demand from sectors such as nology and artificial intelligence.
Additionally, fee-generating lines -- especially special servicing, where SL Green Realty oversees distressed loans or perties for others -- increased active assignments to $6, in today's market environment.
1 billion, a $1. 3 billion sequential rise (noteworthy indeed). Management maintained a stable monthly dividend of $0.
Furthermore, There was no change from the previous quarter (this bears monitoring). The company the quarter with $182 (something worth watching).
9 million in cash and equivalents, with total debt net of deferred costs edging up to $3, considering recent developments. 64 billion from $3. 51 billion at the end of 2024.
In contrast, Balance sheet flexibility was highlighted by opportunistic debt repayments and equity acquisitions.
Nevertheless, Looking Ahead: Guidance and Areas to WatchManagement raised full-year guidance for FFO per to a range of $5, given the current landscape. 95, with the midpoint up $0.
The company credits this revision to increased contributions from its debt and preferred equity portfolio, including notable one-time income sources during the quarter, and reflected in its d FFO per guidance for the year ending Dec.
Net income guidance for the year ending Dec, in this volatile climate. 31, 2025, was left unchanged at $1. Leadership jects that Manhattan same-store office occupancy will increase to 93.
2% by year-end, inclusive of leases signed but not yet commenced, supported by robust new client demand and tenant expansions.
Additionally, Management indicated international expansion efforts, with a Paris location expected to open in Q1 2027, in today's financial world.
For investors tracking SL Green Realty, management’s ability to der incremental growth will hinge on market demand for Manhattan offices and further portfolio optimization.
Nevertheless, The company paid three monthly dividends of $0. Note: Revenue and net income are presented using U. Furthermore, Generally accepted accounting principles (GAAP) unless otherwise noted.
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