SL Green (SLG) Down 10.1% Since Last Earnings Report: Can It Rebound?

A month has gone by since the last earnings report for SL Green (SLG). Shares have lost about 10.1% in that time frame, underperforming the S&P 500.

Will the recent negative trend continue leading up to its next earnings release, or is SL Green due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its latest earnings report in order to get a better handle on the important drivers.

SL Green's Q3 FFO & Revenues Beat Estimates, Rental Rates Improve

SL Green reported third-quarter 2025 FFO per share of $1.58, which surpassed the Zacks Consensus Estimate of $1.34. The company reported an FFO of $1.13 per share in the year-ago period.

The results reflected a strong leasing activity with improved average rental rates on the Manhattan office leases signed in this period. From the beginning of the year through Oct. 15, 2025, the company has signed leases aggregating around 1.9 million square feet with a current pipeline of more than 1 million square feet.

Net rental revenues of $149.7 million marginally surpassed the Zacks Consensus Estimate of $149.6 million. Moreover, the figure improved 7.2% year over year.

In October 2025, SL Green entered into a contract to acquire a Class A office building, Park Avenue Tower at 65 East 55th Street, for $730 million. The transaction is set to complete in the first quarter of 2026, subject to customary closing conditions.

Quarter in Detail

In the third quarter, for its Manhattan portfolio, SL Green signed 52 office leases encompassing 0.7 million square feet of space. The average rental rate on the Manhattan office leases signed was $92.81 per rentable square foot, improving from $90.03 in the previous quarter.

The signed leases had an average lease term of 8.9 years. The average tenant concessions were 9.1 months of free rent with a tenant improvement allowance of $99.09 per rentable square foot. The mark-to-market on signed Manhattan office leases decreased 2.7% from the previous fully escalated rents on the same spaces in the quarter.

Same-store cash net operating income (“NOI”), including the company's share of same-store cash NOI from unconsolidated joint ventures, decreased 5.5% year over year to $161 million, excluding lease termination income.

As of Sept. 30, 2025, Manhattan’s same-store office occupancy, including 361,924 square feet of leases signed but not yet commenced, was 92.4%, up from 91.5% at the end of the prior quarter.

SL Green's interest expenses (net of interest income) increased 12.2% from the year-ago quarter to $47.2 million.

Portfolio Activity

In September 2025, SL Green closed on the sale of 5% stake in One Vanderbilt Avenue to Mori Building Co., Japan’s leading urban landscape developer, for $86.6 million. The sale follows an 11% stake sale in November 2024. Post this transaction, SL Green’s stake in the trophy office tower is maintained at 55%.

In August 2025, SL Green entered into a contract to acquire 346 Madison Avenue, along with the adjacent site at 11 East 44th Street, for $160 million. Subject to customary closing conditions, the deal is expected to close in the fourth quarter of this year.

Liquidity

SL Green exited the third quarter with cash and cash equivalents of $187 million, up from $182.9 million recorded as of June 30, 2025.

As of the same date, the net carrying value of the company’s debt and preferred equity portfolio was $289.7 million, down from $315.7 million as of the last quarter.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed a downward trend in estimates review.

The consensus estimate has shifted -10.84% due to these changes.

VGM Scores

Currently, SL Green has a poor Growth Score of F, however its Momentum Score is doing a lot better with a B. Charting a somewhat similar path, the stock has a grade of C on the value side, putting it in the middle 20% for this investment strategy.

Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, SL Green has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

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This article originally published on Zacks Investment Research (zacks.com).

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