SL Green Realty (SLG) Q1 2026 earnings summary

Executive summary

• Achieved record Q1 leasing with 51 Manhattan office leases totaling 929,264 sq ft, the highest in company history, with a 16.1% mark-to-market rent increase over prior escalated rents and average starting rent of $105.12 per sq ft.

• Strong demand for premium office space in East Midtown, with trophy building vacancy at 3.4% and continued rent escalation.

• New York City economic indicators remain robust, with record tax revenues, Wall Street profits, and venture capital inflows supporting leasing momentum.

• No new office supply expected in Midtown Manhattan until at least 2029, creating a favorable supply-demand dynamic.

• Major leasing deals included Clay Labs, Harvey AI, TD Securities, and other notable tenants.

Financial highlights

• Net loss attributable to common stockholders was $84.4 million ($1.20 per share) for Q1 2026, compared to $21.1 million ($0.30 per share) in Q1 2025.

• Funds from Operations (FFO) for Q1 2026 was $64.6 million ($0.84 per share), down from $106.5 million ($1.40 per share) in Q1 2025.

• Total revenues for Q1 2026 were $253.1 million, up from $239.8 million in Q1 2025.

• Manhattan same-store cash NOI rose 2.6% year-over-year, excluding lease termination income.

• First quarter NOI and same-store cash NOI exceeded internal projections, with a 2.6% positive variance, 300 basis points above expectations.

Outlook and guidance

• Manhattan same-store office occupancy increased to 94.4% at March 31, 2026, with a target of 95.0% by year-end.

• Reaffirmed 2026 FFO guidance range of $4.40 to $4.70 per share, midpoint $4.55.

• Guidance remains biased toward the higher end of the range, supported by NOI, Summit performance, and growing fee income.

• New dividend policy set annual ordinary dividend at $2.47 per share for 2026, down from $3.09 in 2025, to retain liquidity for investments.

• Expecting a strong summer driven by major events and robust tourism, particularly benefiting Summit.