SL Green (SLG) Down 11.1% Since Last Earnings Report: Can It Rebound?

It has been about a month since the last earnings report for SL Green (SLG). Shares have lost about 11.1% in that time frame, underperforming the S&P 500.But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is SL Green due for a breakout? Well, first let's take a quick look at its latest earnings report in order to get a better handle on the recent drivers for SL Green Realty Corporation before we dive into how investors and analysts have reacted as of late.SL Green's Q2 FFO Beat Estimates, Rental Rates Grow, ’25 Views RaisedSL Green reported second-quarter 2025 FFO per share of $1.63, which surpassed the Zacks Consensus Estimate of $1.37. The company reported an FFO of $2.05 per share in the year-ago period, including 69 cents of gains on discounted debt extinguishment at 280 Park Avenue and 719 Seventh Avenue, and 2 cents of positive non-cash fair value adjustments on mark-to-market derivatives.The results reflected improved average rental rates on the Manhattan office leases signed in this period. However, elevated interest expenses undermined the results to some extent. The company has raised its 2025 outlook.Net rental revenues of $147.5 million marginally missed the Zacks Consensus Estimate of $147.6 million. However, the figure improved 8.8% year over year.Quarter in DetailIn the second quarter, for its Manhattan portfolio, SL Green signed 46 office leases encompassing 0.5 million square feet of space. The average rental rate on the Manhattan office leases signed was $90.03 per rentable square foot, improving from $83.75 in the previous quarter.The signed leases had an average lease term of 7.8 years. The average tenant concessions were 6.3 months of free rent with a tenant improvement allowance of $78.81 per rentable square foot. The mark-to-market on signed Manhattan office leases increased 2.4% from the previous fully escalated rents on the same spaces in the quarter.As of June 30, 2025, Manhattan’s same-store office occupancy, including 531,666 square feet of leases signed but not yet commenced, was 91.4%, down from 91.8% at the end of the prior quarter.Same-store cash net operating income (“NOI”), including the company's share of same-store cash NOI from unconsolidated joint ventures, decreased marginally year over year to $153.3 million, excluding lease termination income.SL Green's interest expenses (net of interest income) increased 26.6% from the year-ago quarter to $45.3 million.Portfolio ActivityIn April 2025, SL Green, along with its joint venture partner, closed on the sale of 85 Fifth Avenue, generating net proceeds of $3.2 million.In April 2025, SL Green acquired its partner's 49.9% interest in 100 Park Avenue for $14.9 million.LiquiditySL Green exited the second quarter with cash and cash equivalents of $182.9 million, up from $180.1 million recorded as of March 31, 2025.As of the same date, the net carrying value of the company’s debt and preferred equity portfolio was $315.7 million, which decreased marginally from the last quarter.2025 OutlookSL Green has revised its 2025 FFO per share guidance. The company now expects the metric between $5.65 and $5.95 from the earlier guided range of $5.25-$5.55, improving by 40 cents per share at the midpoint.SL Green also expects its Manhattan same-store office occupancy, inclusive of leases signed but not yet commenced, to improve to 93.2% by year-end 2025.How Have Estimates Been Moving Since Then?In the past month, investors have witnessed a flat trend in fresh estimates.VGM ScoresCurrently, SL Green has a poor Growth Score of F, however its Momentum Score is doing a lot better with a B. However, the stock has a score of D on the value side, putting it in the bottom 40% for this investment strategy.Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.Outlook SL Green has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.Zacks Names #1 Semiconductor StockThis under-the-radar company specializes in semiconductor products that titans like NVIDIA don't build. It's uniquely positioned to take advantage of the next growth stage of this market. And it's just beginning to enter the spotlight, which is exactly where you want to be.With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $971 billion by 2028.See This Stock Now for Free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report SL Green Realty Corporation (SLG): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks