One-glance verdict
Overvalued
$-55.04 our estimate vs market $51.01
Wall Street consensus: $58.79 (-206.8% lower than our fair-value estimate)
193% below our estimate, beyond the bull case
Fundamentals snapshot
SL Green Realty Corp.
SLG · NYQ · Real Estate · REIT - Office
Current price
$51.01
52-week range
$34.77 - $60.93
Market cap
$3.91B
Balance sheet
Distressed
0.56x Concerning
Net debt $6.10B. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
3 Risks
3 rewards · 3 risks
- Reward Revenue grew 1.3% last year.
- Reward Free cash flow was positive in 4/10 years.
- Risk Return on equity was -3.6% last year — the company lost money on shareholders' equity.
- Risk Insider ownership is only 0.2% (peer median: 0.9%).
What this company does
SL Green Realty Corp.
SL Green is Manhattan's largest office landlord and is structured as a Real Estate Investment Trust, or REIT (a type of company that owns buildings and pays out most of its rental income to investors). The company makes its money primarily by collecting rent from the businesses that lease space in its numerous New York City properties. This means its financial success is directly tied to the health of the Manhattan office market and the ability of its tenants to pay their rent.
How the company got here
SL Green's story began in 1980 when founder Stephen L. Green started S.L. Green Properties, focusing on commercial buildings in Manhattan. A key turning point was in 1997, when the company was restructured into a Real Estate Investment Trust, or REIT (a company that owns and often operates income-producing real estate), and became publicly traded. Through strategic acquisitions of notable Manhattan office buildings over the years, it has grown to become New York City's largest office landlord. This focus on a single, prime market has been central to its identity and growth.
What it actually does
SL Green is essentially a large-scale landlord for businesses in Manhattan. The company operates as a REIT (a special type of company that allows individuals to invest in a portfolio of real estate assets), meaning it primarily owns and manages a collection of large office buildings. Businesses, from law firms to tech companies, pay SL Green rent to occupy space in these buildings. Beyond just collecting rent, the company also focuses on acquiring new properties, redeveloping existing ones to increase their value, and occasionally providing loans to other real estate investors.
Real Estate
This is SL Green's main business, making up the vast majority of its operations. The company owns and manages a large portfolio of office buildings, as well as some street-level retail spaces, almost all located in Manhattan. Revenue (the money the company brings in) is primarily generated from the rent paid by tenants who occupy these spaces. Think of it like being the landlord for some of New York's most recognizable skyscrapers, such as One Vanderbilt and the Graybar Building.
Debt and Preferred Equity Investments
Besides owning buildings, SL Green also acts as a lender within the real estate world. This part of the business provides financing, like mortgages and other types of loans, to other real estate owners and developers. In return for lending this money, SL Green earns interest income, creating another stream of revenue for the company. This is a smaller piece of their business compared to owning properties, but it allows them to diversify (spread out their investments) within the real estate market.
SUMMIT One Vanderbilt
A unique and growing part of SL Green's business is its observation deck, SUMMIT, located at the top of its iconic One Vanderbilt skyscraper. This segment makes money by selling tickets to tourists and locals who want to experience the immersive art installation and panoramic views of New York City. While a smaller contributor to the company's overall revenue compared to its office buildings, it represents a successful effort to create new income sources from its properties.
What management is betting on now
Management is currently focused on strengthening the company's financial position and maximizing the value of its core Manhattan assets. A key priority is leasing, with the company recently exceeding its annual leasing goals, which helps ensure a steady stream of rental income. They are also strategically selling off some properties to generate cash, which can be used to pay down debt or invest in more promising opportunities. Finally, the company is committed to returning value to shareholders, primarily through dividends (a portion of the company's earnings paid out to investors), which is a requirement for maintaining its REIT status.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
Revenue
$253.08M
Net income
$-80.65M
Diluted EPS
-1.20
Operating cash flow
$-17.59M
Free cash flow
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Sources
Revenue
$276.47M
Net income
$-100.83M
Diluted EPS
-1.49
Operating cash flow
$28.49M
Free cash flow
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Sources
Revenue
$244.82M
Net income
$28.61M
Diluted EPS
0.34
Operating cash flow
$-6.78M
Free cash flow
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Sources
Revenue
$241.92M
Net income
$-7.36M
Diluted EPS
-0.16
Operating cash flow
$54.49M
Free cash flow
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Sources
Revenue
$239.85M
Net income
$-17.34M
Diluted EPS
-0.30
Operating cash flow
$6.71M
Free cash flow
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Sources
Revenue
$245.88M
Net income
$13.10M
Diluted EPS
0.13
Operating cash flow
$58.17M
Free cash flow
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Sources
Revenue
$229.69M
Net income
$-9.54M
Diluted EPS
-0.21
Operating cash flow
$16.72M
Free cash flow
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Sources
Revenue
$222.82M
Net income
$1.58M
Diluted EPS
-0.04
Operating cash flow
$79.37M
Free cash flow
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Sources
Is it cheap or expensive?
Fair value $-55.04 vs current price $51.01
Wall Street consensus is the average analyst price target: $58.79 (-206.8% lower than our fair-value estimate).
Our most-likely fair value is $-55.04 a share — about 207.9% below today's price of $51.01, so the stock currently looks expensive (overvalued).
Is it drowning in debt?
Distressed
Net debt $6.1B. Interest coverage 0.6x.
Net debt
$6.10B
Interest coverage
0.56x
SL Green Realty Corp.'s profit covers its interest bill about 0.6 times over. which is weaker than most peers shown here and 1 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Distressed
Worse cushion
Baseline
Better cushion
SLG
BASELINE
SL Green Realty Corp.
Total debt $6.30B Interest coverage 0.56x This is the baseline the peer rows are being compared against.
Total debt $16.36B Interest coverage 1.55x +177% vs SLG Carries about 2.8x more debt cushion than SLG.
Total debt $8.19B Interest coverage 0.81x +45% vs SLG Carries about 1.5x more debt cushion than SLG.
Total debt $4.66B Interest coverage 2.46x +340% vs SLG Carries about 4.4x more debt cushion than SLG.
Total debt $3.78B Interest coverage 1.41x +153% vs SLG Carries about 2.5x more debt cushion than SLG.
What you should know
The case for and against SLG
3 Rewards
3 Risks
Rewards
-
Revenue grew 1.3% last year.
-
Free cash flow was positive in 4/10 years.
-
Dividend yield is 4.8% with 30-year payout history.
Risks
-
Return on equity was -3.6% last year — the company lost money on shareholders' equity.
-
Insider ownership is only 0.2% (peer median: 0.9%).
-
Operating margin compressed from 19.4% to 18.8% over 3 years.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
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Forward P/E
-67.08x
P/B
1.13x
P/S
3.92x
EV/EBITDA
30.76x
PEG ratio
1.30x
Profitability
How much profit each dollar creates
Gross margin
44.8%
Operating margin
18.8%
Net margin
-16.7%
ROE
-3.6%
ROA
0.5%
Health
Liquidity and balance-sheet strength
Debt / equity
1.43x
Current ratio
2.47x
Quick ratio
0.65x
Total debt
$6.30B
Total cash
$193.72M
Growth
How the business has been compounding
Revenue TTM
$1.02B
Revenue 5Y CAGR
3.9%
EPS TTM
-2.72
EPS 5Y CAGR
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Cash flow
How much cash the business throws off
Operating CF TTM
$58.61M
Free CF TTM
$82.91M
FCF margin
8.2%
Dividend
Shareholder payout
Yield
4.9%
Payout ratio
15,375.0%
Last ex-div date
2026-09-30