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4 Key Reasons to Add SL Green Stock to Your Portfolio Right Now

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Key Takeaways

  • SL Green signed 1.3M sq. ft. of Manhattan office leases through mid-July 2025.
  • SL Green agreed to buy 346 Madison Avenue and the adjacent site at 11 East 44th Street for $160M.
  • SL Green closed $96.5M in asset sales in 2025 to fund development projects.

SL Green Realty Corp.’s (SLG - Free Report) high-quality portfolio is well-poised for growth, given tenants’ solid demand for premier office spaces with class-apart amenities. With supply pressures easing and people returning to offices, the company is witnessing healthy leasing activity. A diverse tenant base assures stable rental revenues. Its focus on an opportunistic investment policy to enhance the portfolio quality is also encouraging.

In early September, SL Green entered into a contract to acquire 346 Madison Avenue, along with the adjacent site at 11 East 44th Street, for $160 million.

Shares of this Zacks Rank #2 (Buy) company have gained 8.2% over the past six months against the industry's decline of 0.1%. Given the strength of its fundamentals, there seems to be additional room for growth of this stock.

Analysts seem bullish regarding SLG’s funds from operations (FFO) per share growth prospects. The Zacks Consensus Estimate for the company's 2025 FFO has been revised 10.1% upward over the past two months to $6.21.

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Factors That Make SL Green Stock a Solid Pick

Healthy Leasing Activities: SL Green is well-positioned to benefit from its strategically located properties and the ability to offer top-notch amenities at recently developed office buildings. Since the beginning of the year through July 16, 2025, SL Green has signed Manhattan office leases aggregating 1.3 million square feet.

Particularly, in July 2025, SL Green announced the signing of a new lease with Sigma Computing, Inc. for 64,077 square feet on a portion of the 3rd floor at One Madison Avenue, resulting in the property being 78.1% leased. As of June 30, 2025, the company has a current pipeline of anticipated leases of around 1.0 million square feet.

Strong Tenant Base: This office REIT enjoys a diversified tenant base to hedge the risk associated with dependency on single-industry tenants. Its largest tenants include renowned firms from different industries. Moreover, with tenants’ long-term leases with a strong credit profile, it is well-positioned to generate stable rental revenues over the long term.

Opportunistic Investment Policy: To improve the overall quality of its portfolio, SL Green has been following an opportunistic investment policy. This entails divesting its mature and non-core assets, including residential properties, in a tax-efficient manner and using the proceeds to fund development projects and share buybacks. These match-funding initiatives will ease the strain on the company's balance sheet and demonstrate its prudent capital-management practices.

In April 2025, SL Green, along with its joint venture partner, closed on the sale of 85 Fifth Avenue, generating net proceeds of $3.2 million. In the first quarter of 2025, the company closed on the sale of six Giorgio Armani Residences at 760 Madison Avenue, generating net proceeds of $93.3 million.

Over the years, the large-scale suburban asset sale has helped SLG narrow its focus on the Manhattan market and retain premium and highest-growth assets in the portfolio.

Consistent Dividend Payouts: Solid dividend payouts are the biggest attraction for REIT investors, and SL Green is committed to boosting shareholder wealth. This office REIT has steadily been paying out monthly dividends. In December 2024, SL Green declared a monthly cash dividend payment on its common stock of 25.75 cents, an increase of 2.9% from the prior month's dividend.

In the last five years, the company has increased its dividend three times. Given the company’s solid operating platform, scope for growth and decent financial position compared to that of the industry, this dividend rate is expected to be sustainable over the long run.

Other Stocks to Consider

Some other top-ranked stocks from the broader REIT sector are VICI Properties (VICI - Free Report) and Terreno Realty (TRNO - Free Report) , each carrying a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The Zacks Consensus Estimate for VICI Properties’ 2025 FFO per share has been raised marginally over the past month to $2.39.

The consensus estimate for TRNO’s current-year FFO per share has moved marginally northward in the past two months to $2.61.

Note: Anything related to earnings presented in this write-up represents funds from operations (FFO), a widely used metric to gauge the performance of REITs.


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