SL Green Reports Wider Loss but Strong Leasing Activity in Q1 2026
Event summary
- SL Green reported a net loss of $1.20 per share for Q1 2026, compared to a loss of $0.30 per share in Q1 2025.
- Funds from operations (FFO) were $0.84 per share, down from $1.40 per share in the same period last year.
- The company signed 51 Manhattan office leases totaling 929,264 square feet, the highest volume ever achieved during the first quarter in its history.
- Manhattan same-store cash net operating income (NOI) increased by 2.6% year-over-year, excluding lease termination income.
- SL Green completed a $1.65 billion refinancing of One Madison Avenue and extended its corporate credit facility.
The big picture
SL Green's Q1 2026 results highlight the tension between strong leasing activity and financial losses. The company's strategic focus on Manhattan office properties is evident, but the wider net loss and lower FFO per share raise questions about the sustainability of its current model. The refinancing and leasing successes suggest operational resilience, but the broader market dynamics and occupancy targets will be critical to watch.
What we're watching
- Leasing Momentum
- Whether SL Green can sustain its record leasing activity in Manhattan and maintain the 16.1% mark-to-market increase in rents.
- Financial Flexibility
- How the company's refinancing efforts and extended credit facility will impact its financial flexibility and debt management.
- Occupancy Growth
- The pace at which SL Green can increase Manhattan same-store office occupancy to the targeted 95.0% by December 31, 2026.
Related topics