SL Green's Q4 FFO & Revenues Beat Estimates, Rental Rates Improve

SL Green Realty Corp. SLG reported fourth-quarter 2025 funds from operations (FFO) per share of $1.13, which beat the Zacks Consensus Estimate of $1.10. However, the company reported an FFO of $1.81 per share in the year-ago period.

Results showed robust leasing activity and improved average rents on Manhattan office leases. However, lower same-store net operating income (NOI) and higher interest expenses undermined the performance. The stock was under pressure and ended yesterday’s session 3.01% lower.

Net rental revenues of $159.8 million surpassed the Zacks Consensus Estimate of $147 million. Moreover, the figure improved 14.5% year over year.

For 2025, the company reported an FFO per share of $5.72, missing the Zacks Consensus Estimate by a cent. However, the figure declined significantly from the previous year. Rental revenues of $601.5 million increased 10.8% year over year. It also surpassed the consensus mark of $588.8 million.

SLG’s Q4 Results in Detail

In the fourth quarter, SL Green signed 56 office leases for its Manhattan portfolio, totaling 0.8 million square feet. The average rental rate on the Manhattan office leases signed was $98.26 per rentable square foot, improving from $92.81 in the previous quarter.

The signed leases had an average lease term of 8.5 years. The average tenant concessions were 8.8 months of free rent with a tenant improvement allowance of $97.54 per rentable square foot. The mark-to-market on signed Manhattan office leases increased 6.4% from the previous fully escalated rents on the same spaces in the quarter.

Same-store cash NOI, including the company's share of same-store cash NOI from unconsolidated joint ventures, decreased 3.4% year over year to $152.6 million, excluding lease termination income.

As of Dec. 31, 2025, Manhattan’s same-store office occupancy, including leases signed but not yet commenced, was 93%, up from 92.4% at the end of the prior quarter and 92.5% at the end of the prior-year quarter.

SL Green's interest expenses (net of interest income) increased 29.5% from the year-ago quarter to $49.4 million.

SLG’s Portfolio Activity

In January 2026, SL Green completed the acquisition of a Class A office building, Park Avenue Tower at 65 East 55th Street, for $730 million. In December 2025, the REIT closed on the sale of a 49% joint venture stake in 100 Park Avenue at a gross asset valuation of $425 million.

In October 2025, SL Green completed the acquisition of its joint venture partner’s combined 39.5% stake in 800 Third Avenue for a total value of 5.1 million. During the same month, the company completed the acquisition of 346 Madison Avenue and its adjacent site at 11 East 44^th Street for $160 million.

SLG’s Liquidity

SL Green exited the fourth quarter with cash and cash equivalents of $155.7 million, down from $187 million recorded as of Sept. 30, 2025.

As of the same date, the net carrying value of the company’s debt and preferred equity portfolio was $168.4 million, down from $171.4 million as of the last quarter.

SL Green currently carries a Zacks Rank #5 (Strong Sell).

SL Green Realty Corporation Price, Consensus and EPS Surprise

SL Green Realty Corporation price-consensus-eps-surprise-chart | SL Green Realty Corporation Quote

Upcoming Earnings Releases

We now look forward to the earnings releases of other REITs like Healthpeak Properties DOC and Digital Realty Trust DLR, slated to report on Feb. 2 and Feb. 5, respectively.

The Zacks Consensus Estimate for Healthpeak’s fourth-quarter 2025 FFO per share stands at 45 cents, which indicates a 2.2% dip year over year. DOC currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The Zacks Consensus Estimate for Digital Realty Trust’s fourth-quarter 2025 FFO per share is pegged at $1.83, which implies a 5.8% year-over-year increase. DLR currently carries a Zacks Rank #2 (Buy).

Note: Anything related to earnings presented in this write-up represents funds from operations (FFO), a widely used metric to gauge the performance of REITs.

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

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