SL Green Realty (SLG) Q3 2025 earnings summary

Executive summary

• Leasing momentum remains strong with over 1.9 million sq ft signed year-to-date and a pipeline expected to surpass 2 million sq ft by year-end, with Manhattan office occupancy rising to 92.4% as of September and on track for 93.2% by year-end.

• Portfolio comprised 39 properties totaling 25.4 million sq ft, primarily in Manhattan, with consolidated debt and preferred equity investments totaling $171.4 million.

• Net income for Q3 2025 was $35.2 million, reversing a prior year loss, and FFO for Q3 2025 was $120.4 million ($1.58 per share), up from $78.6 million ($1.13 per share) in Q3 2024.

• Major transactions included the acquisition of Park Avenue Tower for $730 million, 500 Park Avenue, and 346 Madison Avenue/11 East 44th Street, as well as the sale of a 5% interest in One Vanderbilt Avenue for $86.6 million.

• Major refinancing completed at 11 Madison for $1.4 billion at a 5.6% rate, reflecting strong demand for quality Manhattan office financings.

Financial highlights

• Q3 2025 total revenues rose 6.6% year-over-year to $244.8 million, driven by higher rental and investment income, while net income attributable to common stockholders was $24.9 million.

• FFO for Q3 2025 was $120.4 million ($1.58 per share), up from $78.6 million ($1.13 per share) in Q3 2024.

• Same-store cash NOI decreased by 4.2% in Q3 2025 year-over-year, or 5.5% excluding lease termination income, and NOI margin stands at 54%.

• Interest expense increased by $0.20 per share in Q3 and Q4 due to higher line balances from delayed sales, and operating expenses rose 16.8% to $101.3 million.

• Dividend per common share for the nine months was $2.318, with three monthly ordinary dividends of $0.2575 per share and a quarterly preferred dividend of $0.40625 per share.

Outlook and guidance

• Leasing activity is expected to remain robust, with a pipeline of 1 million sq ft and projected leasing to exceed original targets by over 20%.

• Manhattan same-store office occupancy is expected to increase to 93.2% by December 31, 2025, inclusive of leases signed but not yet commenced.

• Rent growth of 20%-25% over the next four to five years is anticipated for Park Avenue assets, driven by scarcity and strong demand.

• Estimated capital expenditures for the remainder of 2025 are $39.4 million for leasing and $19.4 million for recurring property needs.

• Full portfolio mark-to-market and 2026 outlook to be detailed at the December investor conference.