SL Green Realty SLG continues to benefit from strong demand for high-quality Manhattan office space, robust leasing activity and positive rent mark-to-market on replacement leases. Capital recycling also supports liquidity and portfolio quality.
Analysts seem bullish on this Zacks Rank #2 (Buy) stock. The estimate revision trend for 2026 adjusted funds from operations (AFFO) per share indicates a favorable outlook, with estimates moving north over the past two months.
Over the past three months, shares of SL Green have increased 5.8%, outperforming the industry’s 2% decline. Given its solid fundamentals and positive estimate revisions, the stock is likely to maintain its momentum in the quarters ahead.
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What Makes SL Green a Solid Choice?
Premium Leasing Momentum: Demand for high-quality Manhattan office space continues to support rents and occupancy. From the beginning of the year through Sept. 14, 2026, SL Green signed 129 Manhattan office leases totaling 1.76 million square feet. The mark-to-market on signed replacement leases was 15.8% above the previous fully escalated rents for the same spaces.
As of June 30, 2026, Manhattan same-store leased occupancy rose to 94.7% from 93% at year-end 2025. In the second quarter of 2026, same-store cash NOI increased 4.3% year over year, excluding lease termination income. Management expects leased occupancy to reach 95% by year-end 2026.
Tenant Mix and Lease Duration: SL Green’s strategy remains centered on the high-barrier-to-entry New York office market, while tenant diversification limits reliance on any single user. As of June 30, 2026, excluding Paramount Global, no tenant accounted for more than 5% of annualized cash rent, including joint venture exposure.
For the first six months of 2026, Manhattan office leases carried an average term of 8.5 years. In July 2026, the company also signed a 10-year, 98,420-square-foot lease at 11 Madison Avenue, bringing 2026 office leasing volume to nearly 1.5 million square feet and supporting longer-term rental visibility.
Capital Recycling and Liquidity Actions: Management continues to pair asset sales with joint ventures, debt reduction and selective investment. In September 2026, SL Green entered into an agreement to sell 110 Greene Street in SoHo to Natora Group for $226 million. The transaction is expected to close in the fourth quarter of 2026, subject to customary closing conditions. In August 2026, the company also sold 10 East 53rd Street, which had been contracted for $312.2 million.
The SLG Opportunistic Debt Fund deployed $306.4 million year-to-date through June 2026, including $94.7 million during the second quarter, while SL Green repurchased $14.1 million of common stock in the second quarter of 2026. These actions diversify funding sources while supporting portfolio investment and balance sheet management.
Other Stocks to Consider
Some other top-ranked stocks from the broader REIT sector are OUTFRONT Media OUT and Terreno Realty TRNO, 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 OUT’s 2026 FFO per share is pinned at $2.32. This indicates year-over-year growth of 16.6%.
The Zacks Consensus Estimate for TRNO’s 2026 FFO per share is pegged at $2.83. This calls for a year-over-year increase of 2.2%.
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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SL Green Realty Corporation (SLG): Free Stock Analysis Report
Terreno Realty Corporation (TRNO): Free Stock Analysis Report
OUTFRONT Media Inc. (OUT): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).