Summary
SL Green Realty Corp. reported mixed financial results for the first quarter of 2026, posting a net loss of $84.4 million, or $1.20 per share, compared to a net loss of $21.1 million, or $0.30 per share, during the same period in 2025. Funds from operations (FFO), an important performance metric for REITs, declined to $0.84 per share from $1.40 per share in the prior year, largely because the 2025 results included a one-time $25 million gain related to the resolution of a commercial mortgage investment. Despite the weaker quarterly earnings, the company reaffirmed its full-year 2026 FFO guidance range of $4.40 to $4.70 per share.
Operationally, the quarter was one of the strongest in the company’s history. SL Green signed 51 Manhattan office leases totaling more than 929,000 square feet, marking the highest first-quarter leasing volume in its 28-year history. Replacement office leases were signed at rents 16.1% higher than the previous lease rates, demonstrating continued demand for premium office space in Manhattan. The company also reported that Manhattan same-store office occupancy increased from 93.0% at the end of 2025 to 94.4% by March 31, 2026, with expectations to reach 95% occupancy by year-end. Major leasing deals included agreements with Clay Labs, Inc., Harvey AI, and TD Securities.
SL Green also made significant progress in investment and financing activities during the quarter. The company agreed to sell the residential and retail components of 7 Dey Street for $222.6 million while retaining ownership of the office condominium portion of the property. Additionally, together with its joint venture partner, the company completed the sale of 690 Madison Avenue for $54.5 million. On the financing side, SL Green and its partners secured a $1.65 billion refinancing for One Madison Avenue at a fixed interest rate of 5.81%, replacing the previous construction financing facility.
To further strengthen liquidity and reduce financing costs, the company refinanced and extended $2 billion of its $2.4 billion corporate credit facility through 2031 while lowering borrowing costs by 25 basis points. SL Green also maintained shareholder returns by setting its 2026 annual dividend at $2.47 per share. Overall, the quarter reflected improving operational momentum, strong leasing demand, and strategic financial management, even as profitability remained under pressure compared to the previous year.
