Key Reasons to Add SL Green to Your Portfolio Right Now

Core Viewpoint - SL Green Realty Corp. is well-positioned for growth due to its high-quality office properties in New York City and healthy demand for premier office spaces [1] Group 1: Company Performance - SL Green's shares have increased by 31.3% over the past six months, outperforming the industry growth of 9.3%, indicating strong fundamentals and potential for further growth [2] - The company signed 42 office leases in Manhattan during Q3 2024, totaling 763,755 square feet, despite challenges in the U.S. office real estate sector due to remote working trends [4] - Total office leases signed from the beginning of 2024 through December 9, 2024, reached 3.5 million square feet, with a pipeline of over 900,000 square feet, positioning the company favorably for future leasing [6] Group 2: Tenant and Investment Strategy - SL Green benefits from a diversified tenant base, reducing risks associated with reliance on single-industry tenants, and has long-term leases with tenants of strong credit profiles, ensuring stable rental revenues [7] - The company follows an opportunistic investment policy, divesting mature and non-core assets to improve portfolio quality and fund development projects and share buybacks [8][9] Group 3: Financial Outlook - Analysts are optimistic about SL Green's funds from operations (FFO) per share growth, with the Zacks Consensus Estimate for 2024 FFO revised upward by 1.8% to $7.79 [11] - The company raised its 2024 FFO per share guidance to a range of $7.65-$7.95, up from the previous guidance of $7.45-$7.75, and provided a 2025 FFO per share guidance of $5.25-$5.55 [12] Group 4: Recent Transactions - In Q3 2024, SL Green sold the Palisades Premier Conference Center for $26.3 million, receiving net proceeds of $19.8 million, and completed the sellout of the Giorgio Armani Residences for a gross consideration of $168.2 million, with sales expected to conclude in Q4 2024 [10] - The large-scale suburban asset sales have allowed SL Green to focus on the Manhattan market and retain premium growth assets [11]