Monday, SL Green Realty Corp. (SLG) reported lower funds from operations for the third quarter ended September 30, with a decline in total revenues.
SL Green's third-quarter FFO totaled $78.1 million or $0.98 per share, down from $83.1 million or $1.37 per share for the same quarter last year. Analysts polled by Thomson Reuters expected $0.98 per share for the quarter. Analysts' estimates typically exclude special items.
The company reported net loss attributable to stockholders of was $2.5 million or $0.03 per share compared with net income of $28.8 million or $0.49 per share for the prior year quarter.
The company said its results include a gain on early extinguishment of debt of $8.37 million related to repurchase of approximately $33.0 million of its unsecured notes and exchangeable bonds since July 1, and a $11.83 million loss from discontinued operations. Depreciation and amortization rose to $56.95 million from $53.53 million for the year-ago period.
GAAP net operating income declined to $134.18 million from $137.64 million for the same period last year and same-store GAAP non operating income was $133.30 million, up from $126.18 million last year.
Total revenues for the quarter were $249.60 million, down from $268.31 million for the prior year quarter. Five analysts had consensus revenue estimate of $223.61 million for the quarter.
New York's largest office landlord's net rental revenue declined moderately to $192.43 million from $196.76 million a year-ago, escalations & reimbursement revenues dropped to $16.27 million from $31.82 million last year, and preferred equity and investment income declined to $16.27 million from $31.82 million last year.
In the sequentially preceding second quarter, the company reported funds from operations of $83.5 million or $1.20 per share, compared to $117.1 million or $1.92 per share for the year-ago quarter. Net income attributable to common shareholders for the second quarter was $12.6 million or $0.18 per share, compared to $134.2 million or $2.29 per share in the prior-year quarter.
Total revenue for the second quarter declined by 13% to $252.97 million from $290.72 million in the same quarter last year. Net rental revenue for the quarter was $192.74 million, compared to $192.58 million a year ago.
For the quarter under review, total expenses rose to $132.86 million from $129.88 million for the year-ago quarter, reflecting an increase in loan loss reserves to $16.10 million from $9.15 million a year earlier.
Occupancy for the company's Manhattan portfolio at the end of the third quarter was 95.7%, same as last year, but down from 96.2% for the prior quarter. During the quarter, the company signed 28 Manhattan office leases Manhattan totaling 251,888 square feet.
Average starting Manhattan office rents of $47.31 per rentable square foot on the 251,888 square feet of leases signed or commenced during the third quarter represented a 5.2% increase over the previously fully escalated rents, the company said.
For nine months, FFO was $249.69 million or $3.59 per share, down from $283.33 million or $4.65 per share for the same period last year, and net income attributable stockholders declined to $42.79 million or $0.64 per share from $284.30 million or $4.85 per share a year ago. Total revenues for the period were $764.04 million, down from $810.40 million for the prior year period.
Amongst peers, Boston Properties, Inc. (BXP) will report its third-quarter results on October 27. Seventeen analysts expect the company to report earnings of $1.10 per share, on revenues of $353.47 million for the third quarter.
Monday, SGL closed at $41.81, down $0.38 or 0.90%, on a volume of 1.73 million on NYSE.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.