Financial Data and Key Metrics Changes - The company reported an FFO beat of $0.02 per share, driven by higher NOI due to lower expenses and improved contributions from the hospitality business [21][22] - Same-store cash NOI exceeded expectations for the quarter, with a year-end occupancy rate of 93%, reflecting an increase of almost 400 basis points since the lows at the end of Q1 2024 [23][24] - The company achieved a FAD outperformance of $65 million, with nearly $20 million occurring in Q4 alone [22][41] Business Line Data and Key Metrics Changes - The hospitality business saw a solid fourth quarter of activity, contributing positively to overall performance [21] - Leasing activity was strong, with almost 800,000 sq ft of Manhattan office leasing in Q4, bringing the annual total to 2.6 million sq ft [22][24] - The company is on track to achieve its 2026 leasing goals, including a same-store occupancy objective of 94.8% by year-end [24] Market Data and Key Metrics Changes - Tax collections in New York City increased by 8.5% in 2025, primarily driven by growth in personal income [7] - The Big Five banks reported a year-over-year earnings increase of 6.7%, with investment banking revenues up 12.6% [9] - The company anticipates a significant increase in transaction volume for 2026, projecting it to exceed the $23 billion recorded in 2025 [10] Company Strategy and Development Direction - The company is focused on executing a $7 billion refinancing strategy and a $2.5 billion disposition plan, with various stages of financing already in progress [16][17] - There is a strong appetite for investment in New York City, with the company actively engaging with global investors to deploy capital [10][18] - The management emphasizes the importance of human capital, expecting to generate over $100 million in fee revenue from institutional investors [12] Management's Comments on Operating Environment and Future Outlook - The management expressed confidence in the fiscal stability of New York City, despite potential budget deficits, citing a strong business economy [7][8] - The company views 2026 as a promising year for the commercial office sector, with expectations of occupancy gains and business growth [9][11] - Management highlighted the disconnect between the value of the company's assets and its share price, indicating optimism for future stock performance [12][51] Other Important Information - The company is launching fundraising for a new fund focused on senior credit lending, aiming to expand its fund business [19] - The management noted that the credit rating of New York City remains strong, reaffirmed by S&P, which is crucial for navigating near-term risks [8] Q&A Session Summary Question: How are tenants incorporating AI into their business plans? - Management noted that there have been no instances of tenants downsizing due to AI; rather, many are experiencing growth and increased demand for office space [27][28] Question: What areas of interest did overseas investors express during recent meetings? - Investors are looking to diversify their portfolios, with a strong interest in New York City real estate as a safe investment [31][32] Question: Can you provide details on the timing of rental revenue recognition from leases that have commenced? - Management indicated that the timing of revenue recognition is dependent on when tenants finish their space and move in, making it difficult to provide specific quarterly guidance [36][38] Question: What is the impact of asset sales on occupancy gains? - Management clarified that the occupancy objective is primarily driven by organic leasing rather than asset sales, although some lower-occupancy sales could have a nominal effect [70] Question: How does the board approach dividend decisions? - The board takes a holistic view of the company's long-term plans and does not base dividend decisions solely on short-term earnings fluctuations [48][50]

Core Insights - SL Green (SLG) has entered into a joint venture with Rockpoint, selling a 49% stake in 100 Park Avenue at a gross asset valuation of $425 million [1][8] Group 1: Joint Venture Details - The property involved is a 36-story office tower in Midtown Manhattan, spanning 905,000 square feet, located near Grand Central Terminal and featuring amenities such as a golf simulator and personal training studio [2] - The partnership with Rockpoint allows SL Green to reduce its equity exposure while maintaining operational control and enhancing balance sheet flexibility, enabling reinvestment in value-accretive investments [3][8] Group 2: Strategic Focus - SL Green has adopted an opportunistic investment policy to improve its portfolio quality, focusing on retaining premium and high-growth assets in Manhattan [4] - The collaboration with Rockpoint is expected to support leasing momentum and repositioning efforts, potentially increasing the valuation of the Midtown asset [5][8] Group 3: Market Performance - Over the past month, SL Green's shares have increased by 17.1%, contrasting with a 2.1% decline in the broader industry [5]

Core Viewpoint - SL Green Realty Corp. and Rockpoint have formed a joint venture for the ownership of 100 Park Avenue, with SL Green selling a 49% interest at a gross asset valuation of $425 million, highlighting the strength of high-quality office assets in Manhattan's improving market [1][2]. Company Overview - SL Green Realty Corp. is Manhattan's largest office landlord and a fully integrated real estate investment trust (REIT) focused on acquiring, managing, and maximizing the value of Manhattan commercial properties. As of September 30, 2025, SL Green held interests in 53 buildings totaling 30.7 million square feet, including 27.1 million square feet of Manhattan buildings [5]. - Rockpoint is a real estate private equity firm that employs a fundamental value approach to investing, targeting select product types and markets throughout the U.S. The firm has sponsored 19 investment vehicles and has invested or committed to invest in 512 transactions with a total peak capitalization of approximately $81 billion since its inception in 1994 [6]. Investment Details - The joint venture involves 100 Park Avenue, a 36-story office tower in Midtown Manhattan, which spans 905,000 square feet and features a recently renovated amenity center. Major tenants include Alphasights and Alvarez & Marsal Holdings, with significant lease agreements signed in 2022 and 2024 [3][4]. - The transaction reflects Rockpoint's disciplined investment strategy in the office sector, marking its first significant post-COVID office investment, and is seen as an attractive opportunity given the favorable supply/demand dynamics for high-quality properties in New York [2][3].