SL Green Realty (SLG) Nareit REITweek: 2024 Investor Conference summary

2024 goals and performance

• Ahead or on track for nearly all 2024 goals, with strong Q1 results in leasing and earnings.

• Casino project delayed to 2025 due to state process, not internal factors.

• Stretch goals set above guidance, aiming to achieve about 75% of 20 annual objectives.

Leasing and occupancy trends

• Targeting 91.6% occupancy by year-end, with a strong leasing pipeline of 1.55 million sq ft.

• Park Avenue assets driving positive rent growth; Sixth, Third, and Lexington Avenues expected to fill vacancies.

• Over 800,000 sq ft of leases in negotiation, with financial services leading demand.

• Tech sector demand has doubled year-over-year, with major brands seeking large spaces.

• Midtown remains the primary focus for leasing, with some activity in Midtown South.

Capital raising and deployment

• Launched a credit fund targeting over $1 billion, with first close expected in summer and final close by year-end.

• Investor sentiment for New York City is highly optimistic, viewing it as a safe haven.

• $300–$400 million in pipeline investments, focusing on assets with strong fundamentals and credit dislocation.

• Active negotiations for One Vanderbilt JV sale; 245 Park JV sale planned for second half after leasing milestones.

• Expecting price appreciation for 245 Park stake, outperforming leasing underwrite.