SL Green Realty shares fall on Fitch downgrade

Vornado Realty Trust

15/08/2023 14:25

** SL Green Realty shares  SLG.N  fall about 4% at $32.65
premarket after credit ratings agency Fitch downgrades the New
York City-based REIT's issuer default rating to 'BB+' from
'BBB-', with a negative outlook 
    ** Fitch cites the low unencumbered asset coverage of
unsecured debt (UA/UD), which has stayed below 2.0x since the
beginning of the COVID-19 pandemic, coinciding with SLG's
transition to a riskier asset management model
    ** Ratings agency says resolution of the negative outlook
would be considered through improvement in the UA/UD ratio and
SLG reaching the 2x level in the forecast horizon
    ** Fitch also notes the recovery in NYC office space has
been somewhat muted, and the increased acceptance of workplace
flexibility will ultimately impact leasing
    ** Basswood Capital, Adage Capital Partners and Tudor
Investment Corp are among the hedge funds that took new
positions in NY City-based REITs, including SLG and Vornado
Realty Trust  VNO.N , Monday's filings show 
    ** SLG up 0.7% YTD, VNO up 7.2% 

 (Reporting by Sruthi Shankar)
 ((sruthi.shankar@thomsonreuters.com;))