SL Green Realty slides as office leasing disappoints

Sl Green Realty

19/10/2023 15:10

** SL Green Realty's  SLG.N  shares down 2.6% at $34.40
after NYC office REIT's Q3 report fails to enthuse
    ** SLG late Weds reported FFO/sh of $1.27, 2 cents above
Street consensus, per LSEG data
    ** Co said signed 50 Manhattan office leases covering ~356k
sq feet in Q3, while same-store office occupancy increased to
89.9% as of Sept 30 inclusive of leases signed but not yet
commenced
    ** Jefferies, which rates SLG "hold", in note said sq feet
leases signed in qtr below 4-qtr avg of 511k
    ** "We expect a modestly negative near-term reaction driven
by the weaker leasing, particularly amidst increased optimism
around RTO mandates," Jefferies wrote
    ** Benchmark U.S. Treasury 10-year yield  US10YT=RR 
approaching 5% level on Thurs also weighing on interest-rate
sensitive REITs sector
    ** With move on the session, SLG's stock has shed ~16% over
the past month. YTD, stock up 2%

 (Lance Tupper is a Reuters market analyst. The views expressed
are his own)
 ((lance.tupper@thomsonreuters.com
lance.tupper@tr.com 1-646-279-6380))