SL Green Realty Corp.

The company did not provide quarterly revenue or EPS figures in the transcript, but it said second-quarter 2026 results were ahead of expectations and supported a major guidance reset. Management raised 2026 FFO guidance by $1.20 per share, more than 26%, and said the vast majority of that increase is recurring. They attributed the raise to about $0.20 per share of operational uplift from the real estate portfolio, about $0.20 per share from additional fee and other income, and about $0.80 per share from 1 Vanderbilt, including $0.35 recognized in Q2. Marc Holliday said economic occupancy improved 300 basis points, concessions continued to burn off, and the company expects to exceed leasing goals again this year. Management also said 10 East 53rd Street was contracted for sale at an approximately 5.7% cap rate, 7D closed at a 5.0% cap rate, and 1 Vanderbilt’s incremental FFO contribution is expected to be as much or more next year. Forward, the team said 2026 same-store NOI cash NOI growth remains ahead of plan and reiterated a path toward FAD breakeven against the dividend in 2028.

Marc Holliday was highly upbeat and framed the quarter as validation of a multi-year leasing and repositioning strategy. He emphasized that Midtown office supply remains scarce, New York City’s economy is unusually strong, and the company is benefiting from rising rents, lower vacancy, and a broader recovery in demand. He also highlighted Summit’s attendance and the optionality around 151 West 57th Street, 346 Madison, and other development and conversion opportunities, while making clear the company is active across both leasing and capital markets.

Matthew DiLiberto said first-half 2026 performance exceeded expectations and drove the $1.20 per share FFO guidance increase. He broke the uplift into roughly $0.20 per share from the Manhattan office portfolio, $0.20 per share from fee and other income, and $0.80 per share from 1 Vanderbilt, with $0.35 recognized in Q2. He noted that $0.10 of the $0.20 operational uplift was already realized in the second quarter and said capital spend tends to be back-ended, while the company remains cautious on rates and is hedging forward, with debt moving from about 70/30 fixed-to-float to more like 90/10.

Analysts pressed on what is driving the office recovery, how much more embedded mark-to-market remains in the portfolio, and whether conversions could ever swing back to office. Management said the recovery is being driven by strong NYC fundamentals, limited new supply, tenant demand for long-term space, and conversions that are reducing office inventory. Questions on refinancings and 245 Park centered on rising benchmark rates; management said spreads are tightening, CMBS activity is improving, and they are hedging ahead of time. Analysts also asked about concessions, pipeline mix, Summit demand, and the alternative portfolio; management said free rent on typical renewals is around 3 months now, the pipeline is about 50/50 new and renewal, Summit demand remains strong, and challenged assets such as 2 Herald Square and 440/650 Fifth require recapitalization rather than large new capital commitments.