SL Green(US:SLG)2025-10-16 19:00Financial Data and Key Metrics Changes - The company signed over 1,900,000 square feet of leases year-to-date, with expectations to exceed 2,000,000 square feet by year-end [4][5] - Occupancy increased significantly to above 92% as of September, with a target of 93.2% by year-end [5] - A refinancing of $1,400,000,000 was successfully completed at Eleven Madison at a rate of approximately 5.6% [10] Business Line Data and Key Metrics Changes - The company reported strong leasing activity, with three major leases at One Madison increasing occupancy to over 91% [5] - The SLG opportunistic debt fund has closed $1,000,000,000, with deployments expected to rise to over $400,000,000 by year-end [9] Market Data and Key Metrics Changes - The New York office market is experiencing a resurgence, with strong demand and rising rents, particularly in the Park Avenue corridor [6][13] - The acquisition of Park Avenue Tower for $730,000,000 is expected to yield significant near-term upside due to under-market rents [6] Company Strategy and Development Direction - The company is focusing on office-to-residential conversions and limited new construction to create a scarcity dynamic in the high-end space market [6] - Plans for a new development at 346 Madison Avenue are underway, with expectations to deliver by February 1930 [7][9] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the strong pace of leasing continuing into Q4 and beyond, driven by demand in Midtown Manhattan [5] - The company remains committed to exploring all options for 1515 Broadway, including potential entertainment and hospitality uses [12][34] Other Important Information - The company expressed disappointment over not advancing in the gaming license process for Caesars Palace Times Square, emphasizing the project's potential benefits for the community [10][11] - Management highlighted the importance of maintaining flexibility with 1515 Broadway, which is fully leased through mid-2031 [12][34] Q&A Session Summary Question: Activity from Big Tech - Management noted that tech demand is strong, particularly driven by AI, with significant leasing activity from tech firms [15][16] Question: Comparison of Public M&A Deals - Management discussed the relative analysis of capital deployment, emphasizing discipline in targeting deals with perceived value [18][19] Question: Cash Lease Spreads - Management explained that the mark-to-market calculation is conservative and influenced by a few leases, indicating it may not reflect overall market health [29][32] Question: Future of 1515 Broadway - Management stated that the casino proposal is not completely dead and that they are evaluating all options for the property [33][34] Question: Market Rents and Tenant Demand - Management confirmed that there is significant tenant demand, with many tenants seeking large spaces, leading to rising rents [40][42] Question: Financing for Park Avenue Tower - Management indicated strong interest from lenders for financing Park Avenue Tower, with plans to finance approximately $475,000,000 [50][51] Question: OpEx and Profitability Concerns - Management reassured that the focus on high net effective rents and strategic asset management supports profitability despite operational costs [106][109]