SL Green Realty Corp. Reports Second Quarter 2025 EPS of ($0.16) Per Share; and FFO of $1.63 Per Share
Financial and Operating Highlights
Net loss attributable to common stockholders of $0.16 per share for the second quarter of 2025 as compared to net loss of $0.04 per share for the same period in 2024.
Funds from operations ("FFO") of $1.63 per share for the second quarter of 2025, net of negative non-cash fair value adjustments on mark-to-market derivatives of $1.2 million, or $0.02 per share. The Company reported FFO of $2.05 per share for the same period in 2024.
The Company is increasing its 2025 earnings guidance range for the year ending December 31, 2025 to FFO per share of $5.65 to $5.95, an increase of $0.40 per share at the midpoint, to reflect incremental income generated by the Company's debt and preferred equity portfolio, while maintaining its 2025 net income guidance range of $1.27 to $1.57 per share.
Signed 46 Manhattan office leases totaling 541,721 square feet in the second quarter of 2025 and 91 Manhattan office leases totaling 1,143,826 square feet for the first six months of 2025. The mark-to-market on signed Manhattan office leases was 2.4% higher for the second quarter and 0.4% lower for the first six months of 2025 than the previous fully escalated rents on the same spaces.
Same-store cash net operating income ("NOI"), including the Company's share of same-store cash NOI from unconsolidated joint ventures, decreased 1.0% for the second quarter of 2025 and increased by 0.7% for the first six months of 2025, excluding lease termination income, as compared to the same period in 2024.
Manhattan same-store office occupancy was 91.4% as of June 30, 2025, inclusive of leases signed but not yet commenced. The Company expects to increase Manhattan same-store office occupancy, inclusive of leases signed but not yet commenced, to 93.2% by December 31, 2025.
Investing Highlights
The Company's commercial mortgage investment in 522 Fifth Avenue, which had a carrying value of $125.0 million, was repaid for $200.0 million, in addition to interest income recognized on the investment. The repayment generated net proceeds to the Company of $196.6 million.
Together with our joint venture partner, closed on the sale of 85 Fifth Avenue for a gross asset valuation of $47.0 million. The transaction generated net proceeds to the Company of $3.2 million.
Exercised our purchase option and closed on the acquisition of our partner's 49.9% interest in 100 Park Avenue for total cash consideration of $14.9 million.
In July, the Company sold 50.0% of the preferred equity investment in 625 Madison Avenue for $104.9 million. The sales price represented 93.6% of the carrying value of $112.1 million as of June 30, 2025.
Financing Highlights
An affiliate of the Company and a joint venture partner acquired the debt encumbering 1552-1560 Broadway, which had a total debt claim of $219.5 million, inclusive of $26.4 million of accrued and unpaid interest, for $63.0 million.
Special Servicing and Asset Management Highlights
The Company's special servicing business increased by $1.3 billion in active assignments, which now totals $6.1 billion, with an additional $10.5 billion for which the Company has been designated as special servicer on assets that are not currently in active special servicing.
NEW YORK, July 16, 2025 (GLOBE NEWSWIRE) -- SL Green Realty Corp. (the "Company") (NYSE:SLG) today reported a net loss attributable to common stockholders for the quarter ended June 30, 2025 of $11.1 million, or $0.16 per share, as compared to a net loss of $2.2 million, or $0.04 per share, for the same quarter in 2024.
The Company reported a net loss attributable to common stockholders for the six months ended June 30, 2025 of $32.2 million and $0.47 per share as compared to net income of $11.0 million and $0.16 per share for the same period in 2024. Net loss attributable to common stockholders for the six months ended June 30, 2025 included $30.4 million, or $0.40 per share, of net losses recognized from the sale of real estate interests and non-cash fair value adjustments. Net income for the six months ended June 30, 2024 included $99.2 million, or $1.41 per share, of net losses recognized from the sale of real estate interests and non-cash fair value adjustments.
The Company reported FFO for the quarter ended June 30, 2025 of $124.5 million or $1.63 per share, inclusive of $46.6 million, or $0.61 per share, of income, excluding interest income, related to the repayment of the commercial mortgage investment at 522 Fifth Avenue and net of $14.5 million, or $0.19 per share, of investment reserves and $1.2 million, or $0.02 per share, of negative non-cash fair value adjustments on mark-to-market derivatives. The Company reported FFO of $143.9 million, or $2.05 per share, for the same period in 2024, which included $48.5 million, or $0.69 per share, of gains on discounted debt extinguishments at 280 Park Avenue and 719 Seventh Avenue and $1.4 million, or $0.02 per share, of positive non-cash fair value adjustments on mark-to-market derivatives.
The Company reported FFO for the six months ended June 30, 2025 of $231.1 million and $3.03 per share, inclusive of $71.6 million, or $0.94 per share, of income, excluding interest income, related to the repayment of the commercial mortgage investment at 522 Fifth Avenue and net of $14.5 million, or $0.19 per share, of investment reserves and $4.3 million, or $0.06 per share, of negative non-cash fair value adjustments on mark-to-market derivatives. The Company reported FFO of $359.4 million, or $5.12 per share, for the same period in 2024, which included $190.1 million, or $2.71 per share, of gains on discounted debt extinguishment at 2 Herald Square, 280 Park Avenue, and 719 Seventh Avenue and $6.5 million, or $0.09 per share, of positive non-cash fair value adjustments on mark-to-market derivatives.
All per share amounts are presented on a diluted basis.
Operating and Leasing Activity
Same-store cash NOI, including the Company's share of same-store cash NOI from unconsolidated joint ventures, decreased by 0.1% for the second quarter of 2025, or 1.0% excluding lease termination income, as compared to the same period in 2024.
Same-store cash NOI, including our share of same-store cash NOI from unconsolidated joint ventures, increased by 1.4% for the six months ended June 30, 2025, or 0.7% excluding lease termination income, as compared to the same period in 2024.
During the second quarter of 2025, the Company signed 46 office leases in its Manhattan office portfolio totaling 541,721 square feet. The average rent on the Manhattan office leases signed in the second quarter of 2025 was $90.03 per rentable square foot with an average lease term of 7.8 years and average tenant concessions of 6.3 months of free rent with a tenant improvement allowance of $78.81 per rentable square foot. Thirty-six leases comprising 309,246 square feet, representing office leases on space that had been occupied within the prior twelve months, are considered replacement leases on which mark-to-market is calculated. Those replacement leases had average starting rents of $95.93 per rentable square foot, representing a 2.4% increase over the previous fully escalated rents on the same office spaces.
During the six months ended June 30, 2025, the Company signed 91 office leases in its Manhattan office portfolio totaling 1,143,826 square feet. The average rent on the Manhattan office leases signed in 2025 was $86.52 per rentable square foot with an average lease term of 8.9 years and average tenant concessions of 8.1 months of free rent with a tenant improvement allowance of $87.49 per rentable square foot. Sixty leases comprising 670,377 square feet, representing office leases on space that had been occupied within the prior twelve months, are considered replacement leases on which mark-to-market is calculated. Those replacement leases had average starting rents of $88.58 per rentable square foot, representing a 0.4% decrease over the previous fully escalated rents on the same office spaces.
Occupancy in the Company's Manhattan same-store office portfolio was 91.4% as of June 30, 2025, consistent with the Company's expectations, inclusive of 531,666 square feet of leases signed but not yet commenced, as compared to 91.8% at the end of the previous quarter. The Company expects to increase Manhattan same-store office occupancy, inclusive of leases signed but not yet commenced, to 93.2% by December 31, 2025.
Significant leasing activity in the second quarter includes:
New lease with Pinterest, Inc. for 82,812 square feet at Eleven Madison Avenue;
New expansion lease with EQT Partners Inc for 38,358 square feet at 245 Park Avenue;
Early renewal and expansion with Cohen & Gresser LLP for 37,915 square feet at 800 Third Avenue;
Early renewal and expansion with AMA Management Services LLC for 35,151 square feet at Worldwide Plaza;
New lease with Prologis, LP for 29,397 square feet at 461 Fifth Avenue;
New lease with NNN Ultimate Holdings. LLC for 28,906 square feet at 1185 Avenue of the Americas; and
New lease with Offit Capital Advisors LLC for 26,400 square feet at 485 Lexington Avenue.
Investment Activity
In May, the Company's commercial mortgage investment in 522 Fifth Avenue, which had a carrying value of $125.0 million, was repaid for $200.0 million, in addition to interest income recognized on the investment. The repayment generated net proceeds to the Company of $196.6 million.
In April, together with its joint venture partner, the Company closed on the sale of 85 Fifth Avenue for a gross asset valuation of $47.0 million. The transaction generated net proceeds to the Company of $3.2 million.
In April, the Company exercised its purchase option and closed on the acquisition of its partner's 49.9% interest in 100 Park Avenue for total cash consideration of $14.9 million.
Debt and Preferred Equity Investment Activity
The carrying value of the Company's debt and preferred equity portfolio was $525.4 million at June 30, 2025, including $209.7 million representing the Company's share of the preferred equity investment in 625 Madison Avenue that is accounted for as an unconsolidated joint venture. The portfolio had a weighted average current yield of 7.0% as of June 30, 2025, or 7.9% excluding the effect of $63.0 million of investments that are on non-accrual.
During the second quarter of 2025, the Company invested $11.3 million in real estate debt and commercial mortgage-backed securities ("CMBS") and sold CMBS investments with a carrying value of $6.7 million for $8.1 million.
In July, the Company sold 50.0% of the preferred equity investment in 625 Madison Avenue for $104.9 million. The sales price represented 93.6% of the carrying value of $112.1 million as of June 30, 2025.
Financing Activity
In June, an affiliate of the Company and a joint venture partner acquired the debt encumbering 1552-1560 Broadway, which had a total debt claim of $219.5 million, inclusive of $26.4 million of accrued and unpaid interest, for $63.0 million.
Special Servicing and Asset Management Activity
The Company's special servicing business increased by $1.3 billion in active assignments, which now totals $6.1 billion, with an additional $10.5 billion for which the Company has been designated as special servicer on assets that are not currently in active special servicing.
Earnings Guidance
The Company is increasing its 2025 earnings guidance range for the year ending December 31, 2025 to FFO per share of $5.65 to $5.95, an increase of $0.40 per share at the midpoint, to reflect incremental income generated by the Company's debt and preferred equity portfolio, while maintaining its 2025 net income guidance range of $1.27 to $1.57.
Dividends
In the second quarter of 2025, the Company declared:
Three monthly ordinary dividends on its outstanding common stock of $0.2575 per share, which were paid in cash on May 15, June 16 and July 15, 2025;
A quarterly dividend on its outstanding 6.50% Series I Cumulative Redeemable Preferred Stock of $0.40625 per share for the period April 15, 2025 through and including July 14, 2025, which was paid in cash on July 15, 2025, and is the equivalent of an annualized dividend of $1.625 per share.
Conference Call and Audio Webcast
The Company's executive management team, led by Marc Holliday, Chairman and Chief Executive Officer, will host a conference call and audio webcast on Thursday, July 17, 2025, at 2:00 p.m. ET to discuss the financial results.
Supplemental data will be available prior to the quarterly conference call in the Investors section of the SL Green Realty Corp. website at www.slgreen.com under "Financial Reports."
The live conference call will be webcast in listen-only mode and a replay will be available in the Investors section of the SL Green Realty Corp. website at www.slgreen.com under "Presentations & Webcasts."
Research analysts who wish to participate in the conference call must first register at https://register-conf.media-server.com/register/BI0e3732b28c9b475bae122f40d1054549.
Company Profile
SL Green Realty Corp., Manhattan's largest office landlord, is a fully integrated real estate investment trust, or REIT, that is focused primarily on acquiring, managing and maximizing the value of Manhattan commercial properties. As of June 30, 2025, SL Green held interests in 53 buildings totaling 30.7 million square feet. This included ownership interests in 27.2 million square feet of Manhattan buildings and 2.7 million square feet securing debt and preferred equity investments.
To obtain the latest news releases and other Company information, please visit our website at www.slgreen.com or contact Investor Relations at
Disclaimers
Non-GAAP Financial MeasuresDuring the quarterly conference call, the Company may discuss non-GAAP financial measures as defined by SEC Regulation G. In addition, the Company has used non-GAAP financial measures in this press release. A reconciliation of each non-GAAP financial measure and the comparable GAAP financial measure can be found in this release and in the Company's Supplemental Package.
Forward-looking Statements
This press release includes certain statements that may be deemed to be "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 and are intended to be covered by the safe harbor provisions thereof. All statements, other than statements of historical facts, included in this press release that address activities, events or developments that we expect, believe or anticipate will or may occur in the future, including such matters as future capital expenditures, dividends and acquisitions (including the amount and nature thereof), development trends of the real estate industry and the New York metropolitan area markets, occupancy, business strategies, expansion and growth of our operations and other similar matters, are forward-looking statements. These forward-looking statements are based on certain assumptions and analyses made by us in light of our experience and our perception of historical trends, current conditions, expected future developments and other factors we believe are appropriate. Forward-looking statements are not guarantees of future performance and actual results or developments may differ materially, and we caution you not to place undue reliance on such statements. Forward-looking statements are generally identifiable by the use of the words "may," "will," "should," "expect," "anticipate," "estimate," "believe," "intend," "project," "continue," or the negative of these words, or other similar words or terms.
Forward-looking statements contained in this press release are subject to a number of risks and uncertainties, many of which are beyond our control, that may cause our actual results, performance or achievements to be materially different from future results, performance or achievements expressed or implied by forward-looking statements made by us. Factors and risks to our business that could cause actual results to differ from those contained in the forward-looking statements include risks and uncertainties described in our filings with the Securities and Exchange Commission. Except to the extent required by law, we undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of future events, new information or otherwise.
SL GREEN REALTY CORP.CONSOLIDATED STATEMENTS OF OPERATIONS(unaudited and in thousands, except per share data)
Three Months Ended
Six Months Ended
June 30,
June 30,
Revenues:
2025
2024
2025
2024
Rental revenue, net
$
147,535
$
135,563
$
292,053
$
263,766
Escalation and reimbursement revenues
17,702
15,069
36,203
28,370
SUMMIT Operator revenue
31,007
32,602
53,541
58,206
Investment income
6,339
6,191
22,453
13,594
Interest income from real estate loans held by consolidated securitization vehicles
21,049
—
37,030
—
Other income
18,284
33,395
40,482
46,766
Total revenues
241,916
222,820
481,762
410,702
Expenses:
Operating expenses, including related party expenses of $0 and $3 in 2025 and $0 and $0 in 2024
51,105
46,333
107,167
89,941
Real estate taxes
37,750
32,058
74,967
63,664
Operating lease rent
6,105
6,368
12,211
12,773
SUMMIT Operator expenses
24,847
23,188
46,611
45,046
Interest expense, net of interest income
45,318
35,803
90,999
66,976
Amortization of deferred financing costs
1,742
1,677
3,429
3,216
SUMMIT Operator tax expense
1,547
1,855
1,502
560
Interest expense on senior obligations of consolidated securitization vehicles
21,017
—
34,989
—
Depreciation and amortization
60,160
52,247
124,658
100,831
Loan loss and other investment reserves, net of recoveries
(46,287
)
—
(71,326
)
—
Transaction related costs
177
76
472
92
Marketing, general and administrative
21,579
20,032
43,303
41,345
Total expenses
225,060
219,637
468,982
424,444
Equity in net (loss) income from unconsolidated joint ventures
(22,775
)
4,325
(21,605
)
115,485
Income from debt fund investments, net
600
—
600
—
Equity in net (loss) gain on sale of interest in unconsolidated joint venture/real estate
(1,946
)
(8,129
)
(1,946
)
18,635
Purchase price and other fair value adjustments
(9,617
)
1,265
(19,228
)
(49,227
)
Loss on sale of real estate, net
(167
)
(2,741
)
(649
)
(2,741
)
Depreciable real estate reserves
—
(13,721
)
(8,546
)
(65,839
)
Gain on sale of marketable securities
10,232
—
10,232
—
Gain on early extinguishment of debt
—
17,777
—
17,777
Net (loss) income
(6,817
)
1,959
(28,362
)
20,348
Net loss attributable to noncontrolling interests:
Noncontrolling interests in the Operating Partnership
775
153
2,240
(748
)
Noncontrolling interests in other partnerships
840
1,871
5,737
3,165
Preferred units distributions
(2,153
)
(2,406
)
(4,307
)
(4,309
)
Net (loss) income attributable to SL Green
(7,355
)
1,577
(24,692
)
18,456
Perpetual preferred stock dividends
(3,737
)
(3,737
