Truist analyst Michael Lewis has increased the price target for SL Green Realty (SLG, Financial) from $54 to $58 while maintaining a Hold rating on the stock. In a recent conference call, SL Green's management highlighted the company's diverse streams of income and outlined potential growth catalysts. These include the pursuit of a casino license in Times Square, the expansion of the Summit concept into new markets, and investments from a newly raised debt fund. However, despite these positive developments, Truist remains cautious about the underlying office market fundamentals and believes the stock is currently fairly valued.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 16 analysts, the average target price for SL Green Realty Corp (SLG, Financial) is $63.06 with a high estimate of $76.00 and a low estimate of $50.00. The average target implies an upside of 2.88% from the current price of $61.30. More detailed estimate data can be found on the SL Green Realty Corp (SLG) Forecast page.
Based on the consensus recommendation from 17 brokerage firms, SL Green Realty Corp's (SLG, Financial) average brokerage recommendation is currently 2.8, indicating "Hold" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for SL Green Realty Corp (SLG, Financial) in one year is $33.00, suggesting a downside of 46.17% from the current price of $61.3. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the SL Green Realty Corp (SLG) Summary page.
SLG Key Business Developments
Release Date: July 17, 2025
- Leasing Activity: Over 540,000 square feet leased in Q2, totaling 1.3 million square feet year-to-date.
- Pipeline: Over 1 million square feet for near-term execution, with 80% of leases under 25,000 square feet.
- Investment Profit: Nearly $90 million profit on a $130 million investment in the 522 mortgage position.
- Cash Proceeds: Over $300 million from the 522 transaction and 625 Madison Avenue interest sale.
- Fund Commitments: Over $500 million closed in Q2, totaling over $1 billion to date.
- Corporate Liquidity: Over $2 billion in liquidity and fund availability.
- Earnings Guidance: Raised by $0.40 per share at the midpoint.
- FFO Guidance Increase: $0.40 or 7.4% increase at the midpoint.
- Incremental FFO: $0.69 per share from 522 Fifth mortgage repayment.
- Interest Expense: Trending $0.10 per share above original expectations.
- NOI Performance: Slightly better than original expectations.
- Summit Attendance: Higher than projections in Q2, on target for the first six months.
- Discounted Debt Gains: Potential for gains larger than the $20 million currently in guidance.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- SL Green Realty Corp (SLG, Financial) achieved over 540,000 square feet of leasing in the second quarter, bringing the year-to-date total to 1.3 million square feet.
- The company successfully monetized its investment in the 522 Fifth Avenue mortgage position, realizing nearly $90 million of profit on a $130 million investment.
- SL Green Realty Corp (SLG) raised its earnings guidance at the midpoint by $0.40 per share, reflecting increased profitability.
- The company closed over $500 million of fund commitments, bringing the total to over $1 billion, enhancing corporate liquidity.
- SL Green Realty Corp (SLG) is actively pursuing a casino license bid for Caesars Palace Times Square, which could significantly boost tax revenue and local business without displacing residents.
Negative Points
- There was a slight dip in occupancy in the second quarter, which surprised the market.
- Interest expense is trending above original expectations by about $0.10 per share, primarily due to decisions around potential asset sales.
- The company's other income line item saw a $15 million quarter-over-quarter decline, attributed to less fee income.
- The unpredictability and lumpiness of income streams make modeling the company's financials complex.
- Concerns were raised about potential political changes in New York City affecting the business environment, although no immediate impact on tenant discussions was noted.
