SL Green Realty Corp. reported a net loss of $84.4 million, or $1.20 per share, for the first quarter of 2026, compared with a $21.1 million loss ($0.30 per share) in the same period a year earlier. Funds from operations (FFO) totaled $64.6 million, or $0.84 per share, falling short of the consensus estimate of $1.06 per share. Total revenue reached $253.1 million, while net rental revenue— the core operating metric for a real‑estate investment trust—was $166 million, beating the $163 million estimate by 1.8%.
The loss was driven largely by a $4.8 million write‑off of unamortized deferred financing costs, a one‑time charge that was not present in the prior year’s results. In addition, the 2025 quarter included a $0.33‑per‑share gain from the resolution of a commercial mortgage investment, a non‑recurring item that is absent in 2026. These factors explain why FFO declined from $1.40 per share in Q1 2025 to $0.84 in Q1 2026, a miss of 20.8% against consensus. Despite the FFO shortfall, the company’s revenue beat expectations, underscoring strong demand for its core Manhattan office portfolio.
Leasing activity in Manhattan was robust: 51 new office leases were signed for 929,264 sq ft, and the average starting rent was $105.12 per rentable square foot, the highest in the company’s history. Occupancy in the same‑store portfolio rose to 94.4% as of March 31, 2026, and management projects reaching 95.0% by year‑end. The record leasing volume and higher mark‑to‑market rents provide a tailwind that supports future revenue growth, even as the company navigates the one‑time write‑offs that impacted profitability.
Management reaffirmed its 2026 FFO guidance range of $4.40 to $4.70 per share, with a midpoint of $4.55, indicating confidence in the company’s ability to recover the FFO gap while maintaining a strong leasing pipeline. The company also announced the refinancing of One Madison Avenue and its corporate credit facility, actions that strengthen its balance sheet and preserve liquidity for future acquisitions. A quarterly ordinary dividend was declared, allowing the firm to return cash to shareholders while retaining incremental liquidity for investment opportunities.
After the earnings release, market participants reacted negatively in after‑hours trading, largely because the FFO miss fell short of analyst expectations. Investors focused on the profitability metric, which is a key indicator for REITs, and the miss outweighed the revenue beat and leasing momentum in shaping the immediate market response.
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