Why Is SL Green (SLG) Down 11.7% Since Last Earnings Report?

It has been about a month since the last earnings report for SL Green (SLG). Shares have lost about 11.7% 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 the most recent earnings report in order to get a better handle on the important catalysts.

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

SL Green reported fourth-quarter 2025 FFO per share of $1.13, which surpassed 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, higher interest expenses undermined the performance.

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

Quarter 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 net operating income (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.

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.

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.

How Have Estimates Been Moving Since Then?

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

VGM Scores

Currently, SL Green has a poor Growth Score of F, however its Momentum Score is doing a lot better with a C. Following the exact same course, the stock has a grade of C on the value side, putting it in the middle 20% for value investors.

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

Outlook

SL Green has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Performance of an Industry Player

SL Green belongs to the Zacks REIT and Equity Trust - Other industry. Another stock from the same industry, Alexandria Real Estate Equities (ARE), has gained 2% over the past month. More than a month has passed since the company reported results for the quarter ended December 2025.

Alexandria Real Estate Equities reported revenues of $754.41 million in the last reported quarter, representing a year-over-year change of -4.4%. EPS of -$6.35 for the same period compares with $2.39 a year ago.

Alexandria Real Estate Equities is expected to post earnings of $1.73 per share for the current quarter, representing a year-over-year change of -24.8%. Over the last 30 days, the Zacks Consensus Estimate has changed -3.8%.

Alexandria Real Estate Equities has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of F.

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

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