SL Green Realty Corp. (SLG) reported third-quarter 2026 earnings that significantly exceeded Wall Street expectations, delivering adjusted earnings of $1.01 per share against analyst forecasts of a loss of $1.25 per share.
Revenue for the quarter climbed to $273.02 million, well above the $173.01 million analysts had anticipated, reflecting strong operational momentum across the company’s Manhattan portfolio.
The company raised its full-year 2026 earnings guidance, citing high leasing velocity and the successful monetization of its hospitality platform as primary drivers.
Manhattan office occupancy reached 95.0% at the end of the third quarter, supported by a double-digit mark-to-market increase on new and renewal leases across the portfolio.
Same-store net operating income rose more than 4%, while new and renewal rents ran approximately 15% above prior levels, signaling continued pricing power in the Manhattan office market.
Executive VP and Director of Leasing Steven Durels reported that the company’s 1.3 million square foot leasing pipeline includes over 1 million square feet of renewals, as larger tenants engage the market three to five years in advance to secure premium space.
SL Green completed major asset dispositions during the quarter, including a $226.0 million contract to sell 110 Greene Street and the completed sale of 10 East 53rd Street for $312.2 million, advancing its $2.5 billion capital recycling program.
Management reported $7 billion in financing plan completions for 2026, a milestone that strengthens the balance sheet and extends debt maturities at fixed rates heading into the next fiscal year.
The company’s special servicing business has grown to become the largest active SASB servicer in the country, adding over 2 million square feet of asset management during the quarter alone.
Management confirmed that demolition is underway at 346 Madison, with the project modeled for future rents between $240 and $270 per square foot once completed.
The hospitality platform sale was executed at a 20x FFO multiple, a valuation that Chairman and CEO Marc Holliday contrasted sharply with the company’s broader market valuation, noting that the “whole of SL Green trades at just 9x FFO.”
The company also announced that its Summit Paris expansion is expected to open in June 2027, with construction build-out scheduled for completion in May of that year.
High interest rates continued to weigh on results, with management noting a $0.25 negative effect on earnings for the latter half of the year, even as overall guidance trended higher.
