SL Green Boosts FFO Guidance Despite Q2 Loss on Strong Leasing Activity — SL Green Realty Corp.

Event summary

SL Green reported a net loss of $0.38 per share for Q2 2026, compared to a loss of $0.16 per share in Q2 2025.
FFO increased to $1.43 per share from $1.63 per share in the prior year period, which included a significant one-time income item.
The company raised its 2026 FFO guidance range to $5.60-$5.90 per share, up from $4.40-$4.70 per share.
Signed 53 Manhattan office leases totaling 445,161 square feet in Q2, with mark-to-market rents 18% higher than previous escalated rents.
Completed several major asset sales including the residential and retail components of 7 Dey Street for $222.6 million.

The big picture

SL Green's strategic focus on high-mark-to-market leasing and selective asset sales reflects broader trends in Manhattan commercial real estate where landlords are balancing occupancy improvements with portfolio optimization. The company's ability to increase FFO guidance despite a net loss highlights its operational resilience, though execution risks remain around sustaining leasing momentum and realizing income from key properties like One Vanderbilt Avenue.

What we're watching

Leasing Momentum: Whether SL Green can sustain its strong leasing activity and mark-to-market rent increases in a competitive Manhattan office market.
Asset Sales Strategy: The pace at which the company will execute additional asset sales to optimize its portfolio and reduce leverage.
FFO Realization: How SL Green will achieve its upgraded FFO guidance, particularly the $0.80 per share expected from One Vanderbilt Avenue.