SL Green Realty reported fourth-quarter funds from operations (FFO) of $1.12 per diluted share, topping consensus estimates of $1.08 by 3.7%. Total revenues reached $252 million, a 4.1% increase year-over-year and $7 million above analyst projections. The company attributed the outperformance to improved leasing velocity in Manhattan, where it executed 450,000 square feet of new and renewal leases at an average rental rate uplift of 3.8% compared with prior term adjustments. Portfolio occupancy rose to 95.2%, up 60 basis points sequentially, driven by strong demand in its Trophy and Class A office assets.

SL Green’s fourth-quarter interest expense increased 18% year-over-year to $83 million, reflecting higher floating-rate debt balances following recent acquisition funding. The company recorded net debt of $9.8 billion, with a debt-to-EBITDA ratio of 5.2x at quarter end, up from 4.8x in Q4 2024. Management lowered 2026 FFO guidance to a range of $4.35–$4.45 per share, down from the prior outlook of $4.40–$4.55, citing elevated financing costs and modest leasing softness in secondary assets.

During Q4, SL Green closed on two prime Manhattan office acquisitions totaling $520 million, expanding its Trophy portfolio with 1.2 million square feet in Midtown South. The company shifted capital allocation focus from debt reduction to accretive acquisitions, anticipating annualized net operating income of $34 million from these assets. Capital expenditures for portfolio renovations and tenant improvements reached $62 million, supporting an average rent uplift of $6.50 per square foot on renewed leases. Management reiterated its commitment to selectively pursue high-quality assets in core submarkets to sustain long-term growth and maintain sector leadership.