Total Revenues

Q1 2025: $239.846M vs. Q4 2024: $245.879M

Total Revenues declined slightly by about $6.033M (≈2.45%) from Q4 2024 to Q1 2025. This modest drop may reflect normal seasonal fluctuations or a slight contraction in key revenue streams despite other components (such as rental revenue, escalation, or new revenue sources) partially offsetting each other. " "

Net Income

Q1 2025: –$21.545M vs. Q1 2024: +$18.389M

Net income reversed dramatically from a profit of $18.389M in Q1 2024 to a loss of $21.545M in Q1 2025. The reversal is likely due to increased cost pressures—including higher operating expenses, depreciation, and interest expense—and possibly changes in revenue mix that contributed to margin compression relative to the prior period. " " "

Investment Income

Q1 2025: $16.114M vs. Q4 2024: $5.415M

Investment Income surged by nearly 198% in Q1 2025. This notable jump suggests changes in the investment portfolio such as improved yield performance or portfolio rebalancing, which is in line with the company's previous adjustments seen in FY 2024 where higher yields partially offset lower balances. " "

Operating Expenses

Q1 2025: $56.062M vs. Q4 2024: $50.150M

Operating expenses rose by approximately 11.8%, an increase of about $5.912M from Q4 2024 to Q1 2025. The rise could be attributed to increased costs associated with day-to-day operations, possibly from higher lease and operating-related expenses, in contrast with the prior period’s lower expense base. " "

Depreciation & Amortization

Q1 2025: $64.498M vs. Q4 2024: $53.436M

Depreciation and amortization increased by roughly 20.8% (about $11.062M higher) from Q4 2024 to Q1 2025. This change may result from new asset additions, a shift in asset mix, or revised accounting estimates (such as useful lives), building on earlier period changes that had reduced these expenses in FY 2024 through reclassifications and disposals. " "

Interest Expense (net)

Q1 2025: $45.681M vs. Q4 2024: $38.153M

Net interest expense increased by approximately 20% from Q4 2024 to Q1 2025 (an increase of about $7.528M). This rise can be linked to a higher weighted average interest rate and an increase in cash interest expense or debt-related costs compared to the more favorable conditions in the previous quarter. " "

Noncontrolling Interests

Q1 2025: +$4.897M vs. Q4 2024: –$3.222M

Noncontrolling interests shifted positively by moving from a negative balance of $3.222M in Q4 2024 to a positive $4.897M in Q1 2025. This turnaround is driven by contributions from joint ventures, net income impacts affecting noncontrolling equity, and cash distributions adjustments that reversed the prior period’s negative allocation. " "

Funds Available for Distribution (FAD)

FY 2025

“The guidance considers CapEx and decorative CapEx, with expectations that recurring CapEx will decrease as occupancy increases to 93% this year and 94–95% thereafter.” "

“Economic occupancy is expected to increase every quarter, moving from 88–89% at the end of FY 2024 to over 92% by the end of FY 2025. FAD is expected to be roughly in line with the December guidance.” "

no change

Funds from Operations (FFO)

FY 2025

no prior guidance

“The company is comfortable with the current guidance range for FY 2025 FFO, with potential upward revisions based on investment opportunities.” "

no prior guidance

Leasing Objectives

FY 2025

no prior guidance

“Aim to achieve 2 million square feet of leasing and 93.2% year-end leased occupancy for FY 2025.” "

no prior guidance

Debt Investments

FY 2025

no prior guidance

“Nearly $200 million in DPE investments closed in the past nine months, with an actively negotiated pipeline of over $1.2 billion of new debt investments.” "

no prior guidance

Disposition Targets

FY 2025

no prior guidance

“A disposition target of $1 billion for FY 2025, with confidence based on past performance and current negotiations.” "

no prior guidance

Occupancy

FY 2025

“Over 93% leased occupancy in the coming year, with a goal to reach close to 95% occupancy.” "

no current guidance

no current guidance

Capital Expenditures (CapEx)

FY 2025

“Guided to $88 million in specs this year and $99 million committed; base building and other smaller CapEx expected to remain high until closer to 95% occupancy.” "

no current guidance

no current guidance

Dividend Coverage

FY 2025

“The dividend is covered this year, and it is evaluated annually based on taxable income and coverage, though FAD is not considered the right metric for dividend coverage.” "

no current guidance

no current guidance

Economic Occupancy

FY 2025

“Economic occupancy is expected to trail leased occupancy as space is built and leases commence, but it will trend upward throughout 2025 and beyond.” "

no current guidance

no current guidance

Gains

FY 2025

“Another $20 million of gains is included in the guidance for 2025, with potential opportunities to stretch that goal to $50 million.” "

no current guidance

no current guidance

Leasing Momentum

In Q4 2024, Q3 2024, and Q2 2024, leasing momentum was highlighted via strong leasing volumes (e.g. 3.6 million sq ft in Q4, 2.8 million sq ft in Q3, and significant pipeline development in Q2) with robust occupancy improvements and diverse industry pipelines. " " " " "

Q1 2025 reaffirmed targets with early achievements (over 100,000 sq ft YTD) and confidence in reaching 2 million sq ft by year-end despite a slight Q1 dip in occupancy, while maintaining a broad leasing pipeline. " "

Consistently strong sentiment. The topic has remained a cornerstone with broad-based pipeline details; Q1 continues to emphasize momentum and ambitious leasing targets despite minor short‐term occupancy dips.

Robust Debt Investment

The prior periods saw detailed discussions on closing opportunistic funds, a focus on DPE investments, and strategic debt-related activities; Q4 emphasized deployment from a debt fund and Q3 and Q2 underscored structured debt and preferred equity deals ( " " " " ).

Q1 2025 reported nearly $200 million of DPE investments over nine months and an active pipeline exceeding $1.2 billion, showing ongoing strength and commitment on the debt front. "

Steady and growing. The commitment to a robust debt platform is consistent; the pipeline has grown and Q1 highlights strong confidence and larger deal flow.

Market Fundamentals and Office Tightness

Q4 detailed extremely low vacancies (notably in Park Avenue) and strong fundamentals such as job creation and office-to-residential conversions, while Q3 and Q2 emphasized recovering submarkets and stable leasing pipelines. " " " "

Q1 2025 added the element of office-to-residential conversions as a factor tightening inventory, with robust submarket leasing activity and a stable pipeline, alongside confidence that NYC fundamentals support long‐term demand. " " "

Sustained optimism. While core fundamentals remain positive, Q1 integrates the conversion dynamic as a new twist that further tightens supply, reinforcing the bullish outlook on market fundamentals.

Macroeconomic and Tariff Uncertainty

Earlier periods (Q4, Q3, Q2) did not provide commentary on this topic.

In Q1 2025, executives stated that tariff and macro uncertainty had minimal effect on long-term development projects and tenant decision-making; they noted steady foreign investor interest and stable leasing pipeline dynamics. " " "

New emergence. This topic is newly addressed in Q1. Despite heightened global uncertainties, leadership remains confident and downplays short-term impacts on strategy or tenant sentiment.

Execution Risks in Development/Financing

Q2 provided detailed assessments on risks tied to residential conversions and financing constraints; Q3 and Q4 mentioned execution capabilities in development and financing activities under challenging market conditions ( " " " " ).

Q1 2025 continued to underscore long development cycles (5–7 years) and strong balance sheet insulation with hedged debt, highlighting the company’s operational confidence and experience in managing risks. " " "

Stable and well-managed. The recurring narrative is one of seasoned execution; risk factors are acknowledged but mitigated by strategic planning and financial insulation, maintaining consistent confidence over time.

Asset Valuation & Special Servicing Exposure

Q2 featured detailed discussions on potential valuation premiums and a robust pipeline in special servicing (with over $3 billion in active assignments and an additional $6 billion in opportunities), while Q3 and Q4 similarly addressed these challenges. " " " "

Q1 2025 did not specifically address asset valuation challenges or special servicing exposure.

Less emphasis in current period. Unlike prior periods, Q1 leaves this topic unaddressed, suggesting it may be lower in immediate priority or already resolved in prior communications.

Investor Activity & Recapitalizations

Q2, Q3, and Q4 highlighted strong investor interest with active discussions on recapitalizations and asset sales dependency, noting significant transactions and strategic partnerships, with examples like One Vanderbilt and discussions of a $1 billion disposal target ( " " " " ).

Q1 2025 maintained focus on robust investor activity with continued interest from both domestic and foreign institutions, reiterated recapitalization plans, and clear asset sales targets (e.g. $1 billion target) supported by a well-insulated balance sheet. " " "

Consistently positive. Investor confidence and strategic recapitalization remain key themes, with Q1 reinforcing these messages and maintaining a positive sentiment toward capital markets.

Mortgage Servicing Business Expansion

Q2, Q3, and Q4 provided robust detail on expanding the mortgage servicing business, with mentions of active special servicing assignments, scalable fee-based revenue models, and staffing/capacity enhancements (e.g. $5 billion in active assignments in Q3). " "

Q1 2025 touched on the growth of debt-related businesses overall, including allusions to special servicing via a strong debt platform, but with less granular detail compared to prior periods. "

Continued growth. While previous calls provided more detail, Q1 reaffirms overall expansion of the servicing business, integrated into a broader debt strategy, maintaining a positive growth outlook.

Foreign Investment Demand & JV Opportunities

Q2, Q3, and Q4 discussed strong foreign investor interest and active joint venture formations—with notable transactions and targeted asset sales strategies—with emphasis on flexible, asset-light approaches and strategic partnerships. " " " "

Q1 2025 reiterated that foreign investor demand remains robust (helped by a more favorable U.S. dollar) and that the company is actively pursuing various JV opportunities, expecting several deals to close in H2 2025. "

Consistent. The momentum from earlier periods persists in Q1. Interest from international investors and strategic joint venture opportunities continue to underpin SL Green’s capital strategies.

Debt Liquidity Challenges in Capital Markets

Q2 highlighted the challenge of limited debt liquidity affecting transactions. Q3 noted a strong rebound in liquidity with a surge in SASB deal activity, while Q4 discussed active deployment of debt funds and favorable refinancing outcomes despite liquidity constraints. " " "

Q1 2025 described credit market turbulence but emphasized that NYC’s status as a quality market, along with strong CMBS activity and a significant debt platform, is mitigating liquidity challenges; the company maintains a positive outlook. " "

Improving but cautious. Although liquidity challenges persist, Q1 reflects a market recovery in debt markets, with improved transaction volumes and investor demand, easing earlier liquidity constraints.

Delayed Revenue Recognition from Leases

Q3 2024 provided explicit details on the typical delay (6–12 months) between lease-up and revenue recognition, reflecting the inherent timing gap between leasing performance and financial impacts. "

Q1 2025 did not mention delayed revenue recognition from leasing arrangements.

Reduced focus. While the subject was detailed in Q3, it does not surface in Q1, possibly indicating that its impact is now being absorbed as part of the ongoing revenue trajectory or is less of an immediate focus.

Dividend & Cash Flow Sustainability Concerns

Q4 2024 had a focused discussion ensuring that dividend coverage was adequately maintained (using metrics beyond FAD) and reinforcing cash flow stability; earlier periods did not feature significant commentary on this topic. "

Q1 2025 did not mention dividend or cash flow sustainability concerns.

Lower salience. With detailed assurances provided in Q4 and no further mention in Q1, this topic appears to be well-managed and not a growing concern at present.