- SL Green’s Q3 funds from operations reached $122.1M, up from $109.6M in Q2 and $120.4M a year earlier, while net income jumped to $72.2M from $26.5M.
- Sales of 10 East 53rd Street for $312.2M and 110 Greene Street for $226M drove the quarter, and hedging blunted a roughly 150 basis point rate swing.
- Leasing slowed by deal count, with 38 Manhattan office leases versus 53 in Q2, although signed square footage rose to 591,108 SF from 445,161 SF.
SL Green’s Q3 funds from operations rose to $122.1M as two Manhattan sales supported results while leasing slowed, Commercial Observer reported.
That compares with $109.6M in Q2 and $120.4M in Q3 2025, and net income jumped to $72.2M from $26.5M in Q2.
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The Sales Behind the Quarter
In August, SL Green sold 10 East 53rd Street to Jeffrey Kaplan’s Meadow Partners for $312.2M and kept $99M in net proceeds. In September, it sold 110 Greene Street to Natora Group for $226M, which brings in $216M.
By the Numbers
Revenue hit $273M, up from $241M in Q2 and $244M in Q3 2025. Net income of $72.2M compares with $24.9M a year earlier.
Fewer Leases, More Space
SL Green signed 38 Manhattan office leases covering 591,108 SF in Q3. In Q2 it signed 53 deals for 445,161 SF, so the deal count fell while square footage rose.
One of them was a 58,332 SF lease with German state bank Landesbank Baden-Wurttemberg at 1185 Avenue of the Americas.
The wider market has been strong. CRE Daily reported that Manhattan office tower sales surged as leasing hit records.
Rates Take a Bite
CEO Marc Holliday said on the earnings call that rates moved about 150 basis points over the year, costing 25 cents in the second half. SL Green hedged part of its liabilities to lock in lower rates, he said, so the hit was smaller than it might have been.
Other firms report similar pressure. CBRE’s chair and CEO said on the firm’s Q3 call that higher rates are repricing, delaying or killing deals, CRE Daily reported.
Why It Matters
Asset sales did the heavy lifting this quarter, and hedging cushioned the rate shock. Both are balance sheet tools, not leasing momentum, which is why the drop in deal count stands out.
What’s Next
Watch whether the 150 basis point swing keeps weighing on second-half results, since SL Green already flagged the 25-cent hit.
