SL Green Shares Drop 11.7% After Q4 FFO Beat and $730M Acquisition
SL Green shares have fallen 11.7% since the Q4 report, which delivered FFO per share of $1.13 (vs. $1.10 estimate) and net rental revenue of $159.8 million, up 14.5% year-over-year. The REIT completed a $730 million Park Avenue Tower acquisition and reported a 29.5% rise in interest expenses to $49.4 million.
1. Q4 Financial Results
SL Green reported Q4 FFO per share of $1.13, beating the $1.10 consensus estimate but down from $1.81 a year ago. Net rental revenues reached $159.8 million, up 14.5% year-over-year, while interest expenses rose 29.5% to $49.4 million, weighing on overall profitability.
2. Leasing Activity and Occupancy
The REIT signed 56 Manhattan office leases covering 0.8 million square feet at an average rate of $98.26 per rentable square foot, up from $92.81. Same-store office occupancy climbed to 93%, compared with 92.4% in the prior quarter, with average lease terms of 8.5 years and tenant concessions of 8.8 months free rent.
3. Recent Acquisitions and Asset Sales
In January 2026, SL Green acquired Park Avenue Tower for $730 million, expanding its Class A Manhattan portfolio. In December, it sold a 49% joint-venture stake in 100 Park Avenue for $425 million and earlier closed on stakes in 800 Third Avenue and 346 Madison Avenue totaling $165.1 million.
4. Liquidity and Outlook
The company ended the quarter with $155.7 million in cash and equivalents and reduced its debt and preferred equity carrying value to $168.4 million. Growth, value, and momentum scores remain mixed, and SL Green holds a Hold rating with an in-line return expectation for the coming months.