{"id":431874,"date":"2025-12-07T22:01:16","date_gmt":"2025-12-07T22:01:16","guid":{"rendered":"https:\/\/www.europesays.com\/us\/431874\/"},"modified":"2025-12-07T22:01:16","modified_gmt":"2025-12-07T22:01:16","slug":"hochul-tells-investors-to-buy-sl-green-amid-dimmer-outlook-for-2026","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/us\/431874\/","title":{"rendered":"Hochul Tells Investors To Buy SL Green Amid Dimmer Outlook For 2026"},"content":{"rendered":"

Gov.\u00a0Kathy Hochul<\/a>\u00a0made an appearance at SL Green Realty Trust’s\u00a0investor conference Friday to cheer on those financing New York City\u2019s largest office landlord.<\/p>\n

\u201cTo all of you, who are either major investors now or deciding to dip your toe in even further, what are you waiting for?\u201d she said\u00a0as the opening speaker of the call<\/a>. \u201cThis is the smart money right here, right now.\u201d<\/p>\n

\"Placeholder\"\/<\/p>\n

\n Assembly Member Michaelle Solages, Gov. Kathy Hochul and SL Green CEO Marc Holliday at the Belmont Park topping-off ceremony on Oct. 15\n <\/p>\n

Speaking at One Vanderbilt<\/a>, SL Green\u2019s 73-story office tower, Hochul called the REIT\u2019s CEO,\u00a0Marc Holliday<\/a>, a \u201cvisionary\u201d who has \u201cfaith and a courageous attitude that is required during the tough times.\u201d<\/p>\n

The comments from the governor \u2014 who is running for reelection next year \u2014 came after SL Green provided earnings guidance to investors for 2026, financial projections that came below Wall Street expectations. Despite Hochul’s compliments, SL Green\u2019s stock plummeted roughly 8%, hitting its lowest point in over a year.\u00a0<\/p>\n

The forecast is especially salient for the industry as SL Green has been a flagbearer<\/a> in New York City\u2019s office market recovery.<\/p>\n

The firm projected funds from operations per share to range\u00a0from $4.40 to $4.70, below analysts\u2019 estimate of $5.13<\/a>, according to regulatory filings. It also expects net income per share to range from a loss of $0.27 to a gain of $0.03.<\/p>\n

SL Green\u00a0also announced it would return to paying dividends quarterly instead of monthly, a change that was made during the pandemic. Holliday attributed the reversal to SL Green\u2019s board.<\/p>\n

During the conference, executives said the company will be focused on paying down its debt load in 2026. To do so, the company plans to\u00a0offload billions in\u00a0assets and interests.<\/p>\n

Potential sales include the office buildings at 185 Broadway and Landmark Square, as well as 315\u00a0W. 33rd St., a mixed-use property featuring luxury rental apartments. SL Green is also considering reducing its 50.1% stake in 245 Park Ave. by 25%, according to the company\u2019s presentation.<\/p>\n

\u201cWe’re selling assets, losing [net operating income]\u00a0to fight against interest rates<\/a> that are too high,\u201d SL Green Chief Financial Officer Matthew DiLiberto<\/a> told investors. \u201cThat’s frustrating. It costs us earnings.\u201d<\/p>\n

Still, executives tried to reassure investors with plans for the year ahead. Proceeds from sales are expected to fuel SL Green\u2019s development pipeline, including an office building at 346 Madison Ave. and an office-to-residential conversion at 750 Third Ave., according to DiLiberto.\u00a0<\/p>\n

SL Green also will be pivoting to a plan B at 1515 Broadway<\/a>, an office tower in the Times Square bowtie where Paramount Skydance’s lease expires in 2031. Local officials voted against<\/a> the developer\u2019s proposal to transform the building into a casino in September.<\/p>\n

\u201cUndoubtedly, the biggest disappointment of the year, a true head-scratcher, [was] the abrupt and questionable end to our four-year pursuit of a casino license in Times Square,\u201d DiLiberto said. \u201cThis outcome disappointed us as much as it disappointed the rest of New York and, ultimately, caused us to write off $12M<\/a>\u00a0of costs related to the process.\u201d\u00a0<\/p>\n

Inspired by its casino plans, the REIT now plans to pursue an adaptive reuse project to convert floors 22 through 53 to 992 hotel rooms. The bottom floors would become an entertainment complex for concepts that do not require a casino license, and a Summit-branded observation deck would be added up top. Outside the building, SL Green wants to expand its digital signage to bring in additional revenue.\u00a0<\/p>\n

Executives remained cheery for the year ahead in the face of potential political challenges. Mayor-elect Zohran Mamdani<\/a>, whose campaign promised rent freezes and corporate tax hikes, will take office next month.<\/p>\n

\u201cWe are in this together,\u201d Holliday said. \u201cHe needs the private sector, and we need him to achieve his goals and ours and to continue contributing to New York’s upward trajectory.\u201d<\/p>\n

Being in with the governor, who has veto power\u00a0over some of Mamdani’s campaign promises, doesn\u2019t hurt either. Holliday has\u00a0previously championed<\/a> the\u00a0law Hochul\u00a0supported last year that granted a long-term tax break to developers who convert office buildings into apartments.\u00a0<\/p>\n

During the event, SL Green Chief Investment Officer Harrison Sitomer<\/a> called Hochul \u201ca true partner to this industry,\u201d adding that he has hosted the governor in his upstate home during the thoroughbred racing season.<\/p>\n

\u201cOn a personal level, it’s been a privilege to develop a close and collaborative relationship with the governor over the past several years,\u201d Sitomer said. \u201cThroughout that time, whether privately or publicly, she has consistently held the line against policies that would weaken the business environment or undermine the competitiveness of this great city.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"Gov.\u00a0Kathy Hochul\u00a0made an appearance at SL Green Realty Trust’s\u00a0investor conference Friday to cheer on those financing New York…\n","protected":false},"author":3,"featured_media":431875,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5122],"tags":[130131,200568,200564,200569,200567,200570,5229,200566,267,5371,200563,130138,200565,405,403,5226,5225,5228,5227,145965,26490,111757,67,586,132,5230,68,2969,5301],"class_list":{"0":"post-431874","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-new-york","8":"tag-1515-broadway","9":"tag-185-broadway","10":"tag-245-park-ave","11":"tag-315-w-33rd-st","12":"tag-346-madison-ave","13":"tag-750-third-ave","14":"tag-america","15":"tag-harrison-sitomer","16":"tag-interest-rates","17":"tag-kathy-hochul","18":"tag-landmark-square","19":"tag-marc-holliday","20":"tag-matthew-diliberto","21":"tag-new-york","22":"tag-new-york-city","23":"tag-newyork","24":"tag-newyorkcity","25":"tag-ny","26":"tag-nyc","27":"tag-one-vanderbilt","28":"tag-sl-green","29":"tag-sl-green-realty","30":"tag-united-states","31":"tag-united-states-of-america","32":"tag-unitedstates","33":"tag-unitedstatesofamerica","34":"tag-us","35":"tag-usa","36":"tag-zohran-mamdani"},"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@us\/115680542380643523","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts\/431874","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/comments?post=431874"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts\/431874\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/media\/431875"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/media?parent=431874"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/categories?post=431874"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/tags?post=431874"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}