SLG Stock Forecast & Price Target

SL Green Realty is projected to experience a significant increase in year-end same-store commenced occupancy rates from 2025 to 2027, expected to rise by 91 basis points, 149 basis points, and 145 basis points year-over-year, indicating strong leasing volume expectations. Additionally, the company's guidance for Funds From Operations Per Share (FFOPS) has been raised by $0.40 at midpoint, attributed to incremental income from its debt and preferred equity portfolio, which reflects improving financial health. Furthermore, there is potential upside in Net Asset Value Per Share (NAVPS), with projections suggesting an increase to $78.00 if SL Green achieves its goal of 93% occupancy, underscoring the positive outlook for the company's operational and financial performance.

The decline in Q2 leasing volume to 542,000 square feet from 602,000 in Q1, coupled with a decrease in the same-store leased rate to 91.4%, highlights a weakening occupancy trend for SL Green Realty. Projections indicate a significant drop in total leasing capital expenditures, from approximately $176 million in 2025 to $139 million in 2027, as new leasing commencements slow, reflecting a challenging market environment. Additionally, the forecasted normalized FFO per share is expected to decline by 11.4% in 2025, leading to concerns over sustainability given the persistent decline in free adjusted distributable per share relative to dividend obligations.