SL Green Realty Corp (NYSE:SLG) Reports Mixed Q3 2025 Results with FFO Beat and Revenue Miss

SL GREEN REALTY CORP (NYSE:SLG) reported third-quarter 2025 financial results that presented a complex picture for investors, with funds from operations significantly exceeding expectations while revenue fell short of analyst projections. The commercial real estate investment trust's performance metrics and strategic announcements during the earnings period have generated mixed market reactions, reflecting the challenging environment for Manhattan office properties.

Earnings Performance Versus Estimates

The company's third-quarter financial results showed notable deviations from analyst expectations across key metrics:

• Funds From Operations (FFO): Reported FFO of $1.58 per share dramatically surpassed the analyst estimate of -$0.2155 per share
• Revenue Performance: Quarterly revenue of $149.67 million came in below the estimated $160.87 million
• EPS Results: The company reported earnings per share of $0.34, representing net income attributable to common stockholders

The substantial beat on FFO, a key metric for REIT performance, indicates stronger operational cash flow than anticipated, while the revenue miss suggests ongoing challenges in the Manhattan office market that have affected top-line performance.

Market Reaction and Price Action

Following the earnings release, market participants have shown cautious sentiment toward SL Green's stock:

• After-market trading showed a decline of approximately 1.10%
• The stock has decreased 5.58% over the past two weeks
• Monthly performance reflects a 7.42% decline

This negative price action suggests investors are weighing the strong FFO performance against the revenue shortfall and broader market concerns about office real estate fundamentals. The immediate after-market reaction indicates some disappointment despite the positive FFO surprise.

Strategic Developments and Portfolio Performance

Beyond the earnings numbers, SL Green announced several significant operational and strategic developments during the quarter. The company reported office leasing volume exceeding 1.9 million square feet, with particular strength at One Madison Avenue where occupancy increased to 91.2%. This leasing activity demonstrates continued tenant demand for SL Green's premium Manhattan properties despite market headwinds.

The REIT also announced the acquisition of Park Avenue Tower, expanding its portfolio of Manhattan office assets. Additionally, Mori Building Co., Ltd. completed an additional investment in SL Green's flagship One Vanderbilt Avenue property, signaling continued international confidence in the company's premier assets and providing additional capital for strategic initiatives.

Forward Outlook and Analyst Expectations

Looking ahead, analyst estimates provide context for SL Green's future performance expectations. For the fourth quarter of 2025, analysts project revenue of approximately $157.99 million with earnings per share of $0.19. Full-year 2025 estimates anticipate sales of $602.85 million with an earnings per share expectation of -$0.90, reflecting the challenging operating environment for Manhattan office REITs.

The company's ability to exceed FFO expectations while growing occupancy in key properties suggests potential for operational improvement, though the revenue miss indicates persistent pressure on rental rates and occupancy across the broader portfolio.

For detailed earnings estimates and historical performance data, readers can access additional information through SLG earnings estimates.

Disclaimer: This article presents factual information about SL Green Realty Corp's financial results and should not be construed as investment advice. Investors should conduct their own research and consult with financial advisors before making investment decisions.