SL Green Lifts 2026 FFO Outlook After Hospitality JV Sale

The Tip Desk · October 27, 2026 · 3 min read

The Manhattan office REIT raised full-year FFO guidance to $6.50–$6.70 a share after projecting $1.10 a share of incremental income from a 20% hospitality joint-venture interest sold in October.

SL Green Realty Corp. (SLG) swung to a profit of $1.01 a share in the third quarter of 2026, reversing a $0.38 loss a share in the second quarter, and raised its full-year funds-from-operations outlook after selling a stake in a food-and-beverage hospitality joint venture.

The Manhattan office landlord reported net income attributable to common stockholders of $72.2 million for the quarter ended September 30, 2026, versus $24.9 million, or $0.34 a share, a year earlier. Diluted FFO was $1.59 a share, compared with $1.58 a share in the third quarter of 2025.

The company increased its previously announced 2026 FFO guidance range from $5.60–$5.90 a share to $6.50–$6.70 a share. It said the lift reflects $1.10 a share of incremental income from the sale of a 20% joint venture interest in an entity related to its food and beverage hospitality operations, offset by $0.25 a share attributable to the higher interest-rate environment. Net income guidance rose from $0.20–$0.50 a share to $0.40–$0.60 a share.

In October, after quarter-end, SL Green closed that hospitality sale at a gross valuation of $200.0 million and received $40.0 million of proceeds. It also sold the 26,000-square-foot office condominium at 185 Broadway for $9.0 million, or $8.7 million net, and with a joint venture partner completed a $2.0 billion five-year fixed-rate refinancing of 245 Park Avenue at 6.52%, hedged to an effective 6.37%.

Manhattan same-store cash NOI, including the company’s share from unconsolidated joint ventures, rose 5.0% in the third quarter, excluding lease termination income, after a 4.3% increase in the second quarter. Same-store cash NOI excluding lease termination income was $159.7 million.

Occupancy in the Manhattan same-store office portfolio reached 95.0% as of September 30, 2026, inclusive of leases signed but not yet commenced, up from 94.7% at June 30.

The number of Manhattan office leases signed in the third quarter fell to 38 from 53 in the second quarter, while square footage leased rose to 591,108 from 445,161. Mark-to-market on those signed leases was 13.6% higher than previous fully escalated rents, down from 18.0% in the second quarter. Average rent on third-quarter leases was $105.75 per rentable square foot, with an average term of 10.7 years and 8.2 months of free rent.

Reported results were lifted by property sales and joint-venture income. Gain on sale of real estate, net, was $91.4 million in the third quarter, versus a $1.1 million loss a year earlier. Equity in net income from unconsolidated joint ventures was $26.7 million, versus a $9.3 million loss a year earlier. Total revenues were $273.0 million, including rental revenue of $165.6 million, SUMMIT Operator revenue of $34.7 million, and fee income of $30.6 million.

In September the company contracted to sell 110 Greene Street for $226.0 million, expected to close in the fourth quarter with about $216.0 million of net cash proceeds for corporate debt repayment. It closed the previously announced sale of 10 East 53rd Street for $312.2 million and received $99.0 million of net cash proceeds. During the quarter it deployed $100.7 million of the $1.3 billion SLG Opportunistic Debt Fund, bringing 2026 deployment to $359.0 million and total Fund deployment to $643.1 million.

As of September 30, 2026, SL Green held interests in 53 buildings totaling 30.3 million square feet. The company declared a quarterly ordinary common dividend of $0.6175 a share, paid October 15, equivalent to an annualized $2.47 a share.