It has been about a month since the last earnings report for SL Green (SLG Quick QuoteSLG - Free Report) . Shares have lost about 19% in that time frame, underperforming the S&P 500.

Will the recent negative trend continue leading up to its next earnings release, or is SL Green due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.

SL Green's Q1 FFO Beats Estimates, Leasing Rebounds

SL Green Realty reported first-quarter 2022 FFO per share of $1.65, beating the Zacks Consensus Estimate by a cent.

Results reflect a better-than-expected top-line number. SLG also experienced healthy leasing activity in the quarter.

Net rental revenues of $136.5 million in the first quarter surpassed the Zacks Consensus Estimate of $135.4 million.

However, the reported FFO per share compared unfavorably with the year-ago quarter’s $1.73. Also, net rental revenues declined 16.2% from the prior-year quarter’s $162.8 million.

Concurrent with the first-quarter earnings release, SL Green announced a contract with Oxford Properties to buy 450 Park Avenue for $445 million. This transaction is expected to close in the second quarter, subject to customary closing norms.

Quarter in Detail

During the first quarter, the same-store cash net operating income (NOI), including SL Green’s share of same-store cash NOI from unconsolidated joint ventures, increased 9.3% year over year. This excludes the lease termination income.

For its Manhattan portfolio, SL Green signed 37 office leases encompassing 820,989 square feet of space. This included three new leases at One Vanderbilt Avenue, taking its total leased figure to 97%. For the same period, the mark-to-market on signed Manhattan office leases decreased 15.1% from the previous fully-escalated rents on the same spaces.

The average lease term for the office leases signed was 9.8 years, while average tenant concessions were 12 months of free rent with a tenant improvement allowance of $108.34 per rentable square foot. This excludes the leases signed at One Vanderbilt Avenue and One Madison Avenue.

As of Mar 31, 2022, Manhattan’s same-store office occupancy, inclusive of 275,295 square feet of leases signed but not yet commenced, was 92.7%, having shrunk 30 basis points from the prior quarter’s level.

As of Mar 31, 2022, the carrying value of the company’s debt and preferred equity portfolio was $1.1 billion.

Liquidity

SL Green exited first-quarter 2022 with cash and cash equivalents of $223.6million, down from $251.4 million recorded at the end of 2021.

Investment Activity

From the beginning of 2022 through Apr 20, SL Green repurchased 2 million shares of its common stock.

In February, SLG closed on the previously announced sale of its ownership interest at 707 Eleventh Avenue for a gross sale price of $95 million, generating net cash proceeds of $91.3 million.

How Have Estimates Been Moving Since Then?

It turns out, fresh estimates flatlined during the past month.

VGM Scores

Currently, SL Green has a poor Growth Score of F, however its Momentum Score is doing a lot better with an A. However, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.

Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

SL Green has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.