SL GREEN REALTY CORP (SLG) Q1 2025 Earnings Summary

Executive Summary

Q1 2025 headline: Revenue and EBITDA materially beat Street, while GAAP EPS was roughly in line/slightly below SPGI “Primary EPS” consensus; company-reported diluted EPS was -$0.30 vs -$0.386 SPGI “actual” used in consensus tracking . Revenue beat was driven by higher rental revenue, other income, and investment income, plus contributions from consolidated securitization vehicles . Revenue/EBITDA beats vs SPGI: $241.0m vs $157.7m; $124.8m vs $67.4m, respectively (SPGI)*.
Operating momentum: 45 Manhattan office leases (602k sf) with minimal concessions drift; same‑store cash NOI +2.4% YoY ex‑termination; Manhattan same‑store occupancy 91.8% and on track to 93.2% YE25 .
Balance sheet/credit platforms: DPE portfolio carrying value $537.6m (7.5% current yield; 8.7% ex non‑accrual) and special servicing active assignments $4.8b with $10.9b designated; management sees robust CMBS/balance sheet lending activity and expects upward bias to guidance if pipeline closes .
Likely stock reaction catalysts: visible estimate revisions from revenue/EBITDA beats; execution on $1B dispositions, 2.0m sf leasing goal, and occupancy glide path to 93.2%; continued ramp of debt fund/special servicing; 500 Park yield rising to ~7.2% shortly after acquisition .

What Went Well and What Went Wrong

What Went Well
- “The company’s earnings for the quarter exceeded the Street’s expectations and our own internal projections by a significant margin,” with NOI and leasing ahead, and strong profits from debt-related businesses .
- Revenue mix strength: Rental revenue, other income, and investment income all rose YoY; total revenue $239.8m vs $187.9m YoY (+27.7%) .
- Strategic momentum: 45 office leases (602k sf), +2.4% same-store cash NOI ex-LTI, Manhattan occupancy 91.8%, pipeline >1.1m sf; YE25 occupancy guide 93.2% . Management emphasized active CMBS/balance-sheet markets and expects upward bias to guidance if pipeline closes .
What Went Wrong
- Mark-to-market on replacement leases -3.1% this quarter, reflecting mix/price points; occupancy ticked down vs Q4 (91.8% vs 92.4%) as buildouts and timing lag economic occupancy .
- GAAP EPS printed a loss (-$0.30); YoY compares include lapping large 2024 JV gain/debt extinguishment items that inflated prior-year FFO/share .
- Macro headwinds (tariffs/market volatility) create uncertainty; management has not seen a slowdown yet, but cautioned timing is unknown .

Financial Results

Quarterly comparisons vs prior year, prior quarter, and estimates:

Metric	Q1 2024	Q4 2024	Q1 2025
Total Revenues ($USD Millions)	$187.9	$245.9	$239.8
Diluted EPS (GAAP)	$0.20	$0.13	$(0.30)
FFO/share (Diluted)	$3.07	$1.81	$1.40
Net Income Margin %	9.8% (18.4/187.9)	7.8% (19.1/245.9)	-9.0% (-21.5/239.8)
Same-store Cash NOI ex-LTI YoY	—	(2.7%)	+2.4%

Estimate comparison (SPGI basis):

Revenue: Consensus $157.7m*, Actual $241.0m* (Company reported $239.8m) → Beat
EBITDA: Consensus $67.4m*, Actual $124.8m* → Beat
Primary EPS: Consensus -$0.379*, Actual -$0.386* (Company reported diluted EPS -$0.30) → Slight miss on SPGI “Primary EPS” basis

Segment/portfolio operating income (selected):

Property NOI incl. SLG share of unconsolidated JVs: Q1 2024 $176.6m; Q4 2024 $209.2m; Q1 2025 $186.6m .
Manhattan operating property NOI (consolidated): Q1 2024 $66.6m; Q4 2024 $74.2m; Q1 2025 $70.6m .

KPIs

KPI	Q1 2024	Q4 2024	Q1 2025
Manhattan leases signed (count / sf)	—	48 / 1,790k	45 / 602k
Replacement lease M-T-M %	—	+9.0%	(3.1%)
Manhattan same-store occupancy (incl. SBC)	88.4%	92.4%	91.8%
Active leasing pipeline	~1.1m sf	~0.9m sf (pipeline refilled)	>1.1m sf
Same-store cash NOI ex-LTI YoY	—	(2.7%)	+2.4%
DPE portfolio carrying value	$352.3m	$518.4m	$537.6m
DPE weighted avg yield	7.4%	7.3%	7.5% (8.7% ex non‑accrual)
Special servicing – active / designated	$5.0b / $6.8b	$5.0b / $8.2b	$4.8b / $10.9b
SUMMIT Operator revenue	$25.6m	$38.6m	$22.5m
Dividend (common)	$0.25/mth	$0.2575/mth	$0.2575/mth; $3.09 annualized

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance/Status	Change
Manhattan same-store occupancy (incl. SBC)	YE 2025	n/a	93.2% target	New
Leasing volume	FY 2025	n/a	≥2.0m sf goal; “living budget…in excess of 2 million feet”	New
Dispositions	FY 2025	~$1.0b (objective)	On track	Maintained
Dividend	Ongoing	$0.2575/mth as of Jan 2025	$0.2575/mth reaffirmed Apr 17, 2025	Maintained
FFO framework	FY 2025	Range set in Dec; not updated on Q1 call	“Upward bias” possible if pipeline closes; revisit next quarter	Qualitative upward bias

Earnings Call Themes & Trends

Topic	Q3 2024 (Prior-2)	Q4 2024 (Prior-1)	Q1 2025 (Current)	Trend
Demand/RTW	Declared pivot; strong trophy/Class A demand; occupancy path to 92.5% YE24	3.6m sf FY24; YE24 92.5% leased; 2025 to >93%	91.8% now; YE25 93.2%; pipeline >1.1m sf; 45 leases in Q1	Improving; expansion into value submarkets
AI/TAMI	TAMI searches doubled YoY (~6–7m sf); early OMA demand	Tech demand improving; IBM OMA expansion	TAMI/AI names in pipeline; OMA large prospecting	Strengthening
Tariffs/macro	N/A	N/A	No slowdown seen post-tariff headlines; pipeline net +2 tenants; cautious optimism	Watching; no impact so far
Capital markets	SASB back; spreads compressing	Lenders “are back”; major deals (Spiral; 299/200 Park)	CMBS YTD $6.9b NYC; active marquee refis coming	Improving liquidity
DPE & special servicing	Relaunch DPE; seed debt fund; special servicing pipeline	Fund anchor closed; fees ahead plan; YE24 $5.0b active/$8.2b designated	DPE book $537.6m (7.5%); special servicing $4.8b active/$10.9b designated	Scaling
Office-to-resi	25–40m sf potential over 5–7 years	Continued progress, conversions tightening supply	Multiple Third Ave projects; supports tightening	Structural supply tailwind
Development	One Madison buildout complete; interest growing	Seeking new Midtown site; long-term view	Still committed; pipeline design work; no pause	Strategic priority
SUMMIT	~6m visitors; expansion to Paris announced	Record year; strong 4Q performance	#1 attended experience in Q1; Paris timeline Q1’27 opening	Durable cash/brand asset

Management Commentary

“The company’s earnings for the quarter exceeded the Street’s expectations and our own internal projections by a significant margin.” — Marc Holliday
“I do expect that our debt-related businesses will account for increasing profits… we are already at the higher end of our guidance range, a range where we will reassess next quarter, with an upward bias if we are successful in closing all of the business now in front of us.” — Marc Holliday
“We haven’t seen a slowdown yet… we had 62 tenants in the pipeline versus today… 64… we haven’t seen any pullback.” — Steven Durels on tariffs/macro
“Looking at the CMBS data, 2025 YTD, we’ve seen $6.9 billion of New York City office CMBS completed… versus 0 in 2023 and $300 million in 2024.” — Harrison Sitomer
“We feel pretty good about 2 million [sf of leasing in 2025]… and by year-end we could eclipse that 2 million feet.” — Marc Holliday

Q&A Highlights

Estimates/Guidance: Management comfortable with downside given termed-out, hedged debt; upside “bias” tied to investment/leasing execution, typically reassessed mid-year .
Dispositions plan: $1B target “on track,” citing prior $9B gross sales since COVID at 4.3% blended cap .
Leasing & pipeline: No slowdown post-tariffs; 64 active tenants, with many expansions; submarket strength on Park and Sixth Ave likely to push face rents; concessions stable to tightening .
500 Park Avenue: Acquired at ~6.8% cap; immediate leasing brought asset to 100% occupancy; current yield ~7.2%; $20m+ upgrade to elevate rents further .
Casino license timeline: Environmental review underway; license submission targeted June 27; local approvals by end of September; aim for year-end award .

Estimates Context

Revenue: Consensus $157.7m*, Actual $241.0m* (Company-reported $239.8m) → Beat .
EBITDA: Consensus $67.4m*, Actual $124.8m* → Beat.
Primary EPS: Consensus -$0.379*, Actual -$0.386* (Company-reported diluted EPS -$0.30) → Slight miss on SPGI “Primary EPS” basis .
Estimate counts: EPS (3), Revenue (6).

Note: SPGI “actuals” can differ from company-reported figures due to methodology; we cite company-reported diluted EPS (-$0.30) and revenues ($239.8m) separately where relevant .
*Values retrieved from S&P Global.

Key Takeaways for Investors

Operational momentum intact: Leasing velocity, pipeline quality, and occupancy trajectory (to 93.2% YE25) support stable-to-improving property cash flows despite a modest negative M‑T‑M this quarter .
Upside optionality from credit platforms: DPE earnings and special servicing are scaling into a friendlier credit environment; management sees these as durable contributors .
Capital markets tailwinds: Rapid reopening of NYC office CMBS and active balance-sheet lenders increase confidence in executing dispositions/refis/JV recaps .
Estimate revisions likely: Material revenue/EBITDA beats vs consensus should prompt upward models; EPS optics are muddied by GAAP vs SPGI methodology and non-cash items .
2025 execution watch items: $1B dispositions, ≥2.0m sf leasing, OMA and Park/Sixth rent push with tightening concessions, and 500 Park ROI uplift .
Structural supply reduction: Office-to-resi conversions and scarce new supply reinforce medium-term rent/occupancy recovery in SLG’s Midtown footprint .
Potential catalysts next quarter: Guidance reassessment (“upward bias”) contingent on executing the current pipeline across equity, debt, and fee-oriented initiatives .

Appendix: Source Documents

Q1 2025 8‑K/press release, financials, supplemental package .
Q1 2025 earnings call transcript (full) .
Q4 2024 press release and call transcript .
Q3 2024 press release and call transcript .
Dividend press release (Apr 17, 2025) .
SPGI consensus and actuals (Q1 2025): Revenue, EBITDA, Primary EPS, estimate counts (see asterisked items in Estimates Context). *Values retrieved from S&P Global.