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 push totals above 2 million sq ft for 2025, following a record 3 million sq ft in 2024.

• Portfolio comprised 39 properties totaling 25.4 million sq ft with 91.2% occupancy as of September 30, 2025, primarily in Manhattan; consolidated debt and preferred equity investments totaled $171.4 million.

• Net income for Q3 2025 was $35.2 million, reversing a loss of $9.3 million in the prior year quarter; nine-month net income was $6.8 million, down from $11.1 million year-over-year.

• Major acquisitions included Park Avenue Tower for $730 million and 500 Park Avenue, with Park Avenue Tower in-place occupancy at 95% and rents significantly below market.

• New development site acquired at 346 Madison Avenue and 11 East 44th Street, targeting boutique financial tenants with expected delivery in 2030.

Financial highlights

• Park Avenue Tower acquired at a 6.2% cap rate, with in-place rents at $125/sq ft and market rents in the mid-$150s to over $200/sq ft.

• Q3 2025 total revenues rose 6.6% year-over-year to $244.8 million, driven by higher rental and investment income.

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

• $1.4 billion refinancing completed at 11 Madison at a 5.6% rate.

• Same-store cash NOI down 1.6% YTD, slightly below guidance, mainly due to Ascent at Summit being offline and a tenant converting TI to free rent.

Outlook and guidance

• Leasing pipeline remains robust, with expectations to exceed original projections by 20%+ for the year.

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

• Market vacancy rates expected to decline and net effective rents to rise, especially in high-end Midtown submarkets.

• Concessions tightening, with tenant improvement allowances and free rent periods decreasing, particularly in the top third of the market.

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