SLG Stock Forecast & Price Target

SL Green Realty has demonstrated strong performance in its premium asset segment, with availability rates in high-quality buildings significantly lower than the broader Midtown average, and a notable rise in leases signed at over $100/SF. Management anticipates robust cash same-store NOI growth exceeding 10% year-over-year in 2027, supported by increasing leased occupancy and high leasing volumes, indicating strong tenant demand. Moreover, with a stable leasing pipeline of approximately 1 million square feet and favorable market conditions, the company is well-positioned for continued growth in occupancy and earnings over the next few years.

SL Green Realty faces a challenging outlook due to anticipated financial declines, with a projected 12.8% year-over-year normalized funds from operations per share (FFOps) decline in 2025, despite expectations for growth in the subsequent year. The company is burdened by high leasing capital and interest expenses, compounded by uncertainties surrounding job growth and interest rates that pose risks to the broader REIT sector. Furthermore, potential slowdowns in NYC office leasing could hinder revenue projections, raising concerns about the performance of SL Green's stock, which has already seen a significant year-to-date decline of 37%.