SL Green(US:SLG) Goldman Sachs·2025-05-20 07:35Investment Rating - The report maintains a "Sell" rating on SL Green Realty Corp. (SLG) with a 12-month price target of $50.00, indicating a downside potential of 15.0% from the current price of $58.82 [4][5]. Core Insights - Minor adjustments were made to SLG's estimates following the implementation of the 1Q25 Cash Flow Statement, but these changes are not considered material and do not affect the overall investment thesis, price target, or rating [1]. - The report highlights a forecast for NAREIT FFO, Core FFO, and AFFO for the years 2025 to 2027, showing slight reductions in estimates compared to previous forecasts, with notable growth rates projected for 2026 and 2027 [3]. - The valuation is based on an unchanged AFFO multiple of 31.6x, with the report emphasizing potential upside risks such as higher leasing volumes, development contributions, and share repurchases [4]. Financial Estimates Summary - NAREIT FFO for 2025 is estimated at $5.41, reflecting a decrease of 0.2% from the previous estimate, with a significant decline of 32.9% year-over-year [3]. - Core FFO for 2025 is projected at $5.11, also down by 0.2%, with a modest growth of 3.8% anticipated [3]. - AFFO is revised to $1.23 for 2025, a decrease of 1.0%, with a year-over-year decline of 31.6% [3]. - The consensus estimates for 2025 NAREIT FFO stand at $5.45, indicating a slight underperformance compared to Goldman Sachs' estimates [3]. Valuation Metrics - The market capitalization of SLG is reported at $4.5 billion, with an enterprise value of $8.1 billion [5]. - The forecasted revenue for 2025 is $606 million, consistent with previous estimates [5]. - The report indicates a dividend yield of 5.0% for 2025, with a projected return on equity (ROE) of 0.8% [5].