SL Green Realty Corp.'s Net Loss Soars 404.5% in Q2 2025

SL Green Realty Corp. (SLG) reported a net loss attributable to common stockholders of $11.1 million, or ($0.16) per share, for the second quarter of 2025. This compares to a net loss of $2.2 million, or ($0.04) per share, for the same period in 2024, marking a 404.5% increase in net loss year-over-year. Revenue for the quarter reached $241.9 million, up from $222.8 million in Q2 2024, representing an 8.6% year-over-year increase. The reported revenue of $241.9 million exceeded the analyst estimate of $172.3 million, indicating a beat of expectations, while the net loss per share of ($0.16) missed the analyst EPS estimate of $1.37.

Leasing and Occupancy Performance

During the second quarter of 2025, SL Green signed 46 Manhattan office leases, totaling 541,721 square feet. For the first six months of 2025, the company secured 91 Manhattan office leases, accumulating 1,143,826 square feet. The mark-to-market on signed Manhattan office leases showed a 2.4% increase for the second quarter compared to previous fully escalated rents on the same spaces, although it was 0.4% lower for the first six months of 2025.

Manhattan same-store office occupancy stood at 91.4% as of June 30, 2025, including leases signed but not yet commenced. The company anticipates this occupancy to rise to 93.2% by December 31, 2025. Noteworthy leasing activities in Q2 2025 include a new lease with Pinterest, Inc. for 82,812 square feet at Eleven Madison Avenue and an expansion lease with EQT Partners Inc for 38,358 square feet at 245 Park Avenue.

Investment and Financing Activities

In May, the company's commercial mortgage investment in 522 Fifth Avenue, with a carrying value of $125.0 million, was repaid for $200.0 million, generating net proceeds of $196.6 million. In April, the sale of 85 Fifth Avenue generated net proceeds of $3.2 million for the company. Additionally, SL Green acquired its partner's 49.9% interest in 100 Park Avenue for $14.9 million. In July, 50.0% of the preferred equity investment in 625 Madison Avenue was sold for $104.9 million, representing 93.6% of its carrying value.

The company also saw its special servicing business increase by $1.3 billion in active assignments, now totaling $6.1 billion. In terms of financing, an affiliate of the company and a joint venture partner acquired the debt on 1552-1560 Broadway for $63.0 million, which had a total debt claim of $219.5 million.

Management Outlook

The company is increasing its 2025 earnings guidance range for the year ending December 31, 2025, to FFO per share of $5.65 to $5.95. This represents an increase of $0.40 per share at the midpoint, reflecting incremental income from the company's debt and preferred equity portfolio. The 2025 net income guidance range is maintained at $1.27 to $1.57 per share.