SL Green Realty (SLG, Financials) is still in favor with Piper Sandler, which reaffirmed its Overweight rating ahead of Q2 earnings. The firm pointed to SL Green's reliable dividend, long-term resilience, and firm hold on Midtown Manhattan real estate—despite rising political uncertainty and market nerves.
The stock has dipped 3.8% since June 20, trailing other REITs and office benchmarks, but it's still up more than 14% over the past year and offers a solid 5.08% yield. Impressively, SL Green has maintained its dividend for 29 straight years—even with a beta of 1.64.
Much of the recent pressure stems from local politics. Investors were rattled by NYC mayoral candidate Zohran Mamdani's primary win and his progressive platform. But Piper Sandler reminded clients that tax policy is in Albany's hands—and with nearly half of state tax revenue coming from the wealthy, drastic change is unlikely.
SL Green is also on the move. Evercore ISI raised its price target from $66 to $74 after a positive chat with the CFO, focused on Manhattan leasing and a potential casino license. Piper Sandler kept its $72 target, citing the ongoing scarcity of premium office space as a bullish factor.
Shareholder sentiment also looks firm—board nominees were re-elected, executive pay passed, and Deloitte was reappointed as auditor. In a noisy REIT sector, that kind of quiet vote of confidence matters.
Bottom line: Office REITs are under pressure, but Piper Sandler sees SL Green as a standout—offering consistency, prime assets, and staying power amid the noise.
