SL Green Reports High Q3 Earnings From Sales of Two Manhattan Properties

SL Green Realty recorded strong balance sheet performance during the third quarter of 2026 despite high interest rates and slower quarter-over-quarter leasing.

This was mainly from the company’s disposition strategy, which generated additional cash flow. SL Green completed the August sale of 10 East 53rd Street to Jeffrey Kaplan’s Meadow Partners for $312.2 million, from which it collected net proceeds of $99 million. In September, it offloaded 110 Greene Street to Natora Group for $226 million, for which it will see $216 million in proceeds.

The real estate investment trust said Thursday that funds from operations reached $122.1 million during the third quarter, compared to $109.6 million in the second quarter and $120.4 million in the third quarter of 2025. Meanwhile, total revenue was $273 million, an increase from $241 million recorded in the second quarter and $244 million reported in the third quarter of 2025.

Net income was $72.2 million as compared to $26.5 million in the second quarter and $24.9 million in the third quarter of 2025, SL Green said during an earnings call.

“Higher rates impact all real estate businesses and most every industry, and we’re talking about a swing of about 150 basis points throughout the year, up from the already elevated levels at the beginning of the year,” SL Green CEO Marc Holliday said during the earnings call. “That, of course, is not something we control, and we’ve noted in the earnings release that it had a 25-cent impact on the back half of the year. However, we can and have aggressively and smartly hedged parts of our liabilities to lock in lower interest rates, so the impact has not been nearly as great as it could have been.”

The number of leasing transactions, meanwhile, declined for SL Green in the third quarter, with 38 Manhattan office leases totaling 591,108 square feet. That’s compared to the 53 deals signed in the second quarter of 2026 that totaled 445,161 square feet.

For example, SL Green signed German state bank Landesbank Baden-Württemberg to a 58,332-square-foot lease at 1185 Avenue of the Americas during the third quarter.

Mark Hallum can be reached at mhallum@commercialobserver.com.

Source: commercialobserver.com — article syndicated from the publisher’s feed; all rights remain with the original publisher.