NYSE:SLG

Stock Analysis Report

Executive Summary

SL Green Realty Corp., an S&P 500 company and New York City's largest office landlord, is a fully integrated real estate investment trust, or REIT, that is focused primarily on acquiring, managing and maximizing value of Manhattan commercial properties.

Snowflake

Fundamentals

Established dividend payer and slightly overvalued.


Similar Companies

Share Price & News

How has SL Green Realty's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

1.0%

SLG

1.5%

US REITs

0.5%

US Market


1 Year Return

-11.5%

SLG

20.3%

US REITs

6.8%

US Market

Return vs Industry: SLG underperformed the US REITs industry which returned 20.3% over the past year.

Return vs Market: SLG underperformed the US Market which returned 6.8% over the past year.


Shareholder returns

SLGIndustryMarket
7 Day1.0%1.5%0.5%
30 Day-0.1%1.7%-0.8%
90 Day-0.01%7.6%-0.9%
1 Year-7.7%-11.5%25.7%20.3%9.2%6.8%
3 Year-11.4%-20.2%35.8%18.5%45.6%36.2%
5 Year-16.0%-27.9%64.6%29.8%63.2%45.4%

Price Volatility Vs. Market

How volatile is SL Green Realty's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is SL Green Realty undervalued compared to its fair value and its price relative to the market?

7.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SLG ($81.29) is trading below our estimate of fair value ($88.28)

Significantly Below Fair Value: SLG is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: SLG is poor value based on its PE Ratio (38.3x) compared to the REITs industry average (36.2x).

PE vs Market: SLG is poor value based on its PE Ratio (38.3x) compared to the US market (17.7x).


Price to Earnings Growth Ratio

PEG Ratio: SLG's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: SLG is good value based on its PB Ratio (1.2x) compared to the US REITs industry average (2x).


Next Steps

Future Growth

How is SL Green Realty forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

-10.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SLG's earnings are forecast to decline over the next 3 years (-10.7% per year).

Earnings vs Market: SLG's earnings are forecast to decline over the next 3 years (-10.7% per year).

High Growth Earnings: SLG's earnings are forecast to decline over the next 3 years.

Revenue vs Market: SLG's revenue (0.7% per year) is forecast to grow slower than the US market (7.2% per year).

High Growth Revenue: SLG's revenue (0.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SLG's Return on Equity is forecast to be low in 3 years time (4.1%).


Next Steps

Past Performance

How has SL Green Realty performed over the past 5 years?

-5.2%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: SLG's earnings have declined by -5.2% per year over the past 5 years.

Accelerating Growth: SLG's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: SLG had negative earnings growth (-45.1%) over the past year, making it difficult to compare to the REITs industry average (17.6%).


Return on Equity

High ROE: SLG's Return on Equity (3.2%) is considered low.


Return on Assets

ROA vs Industry: SLG's Return on Assets is below or equal to the REITs industry average last year.


Return on Capital Employed

ROCE Improving: SLG has improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is SL Green Realty's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: SLG has a high level of physical assets or inventory.

Debt Coverage by Assets: SLG's debt is not covered by short term assets (assets are 0.2x debt).


Financial Institutions Analysis

Asset Level: SLG's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if SLG has a sufficient allowance for bad loans.

Low Risk Liabilities: SLG reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if SLG has an acceptable proportion of non-loan assets held.

Low Risk Deposits: SLG has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if SLG has an appropriate level of bad loans.


Next Steps

Dividend

What is SL Green Realty's current dividend yield, its reliability and sustainability?

4.18%

Current Dividend Yield


Dividend Yield vs Market

company4.2%marketbottom25%1.4%markettop25%3.7%industryaverage3.6%forecastin3Years4.4%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: SLG's dividend (4.18%) is higher than the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: SLG's dividend (4.18%) is in the top 25% of dividend payers in the US market (3.73%)

Stable Dividend: SLG's dividend payments have been volatile in the past 10 years.

Growing Dividend: SLG's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (51.1%), SLG's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: SLG's dividends in 3 years are forecast to be thoroughly covered by earnings (0.6% payout ratio).


Next Steps

Management

What is the CEO of SL Green Realty's salary, the management and board of directors tenure and is there insider trading?

8.8yrs

Average management tenure


CEO

Marc Holliday (53yo)

15.8yrs

Tenure

US$13,355,778

Compensation

Mr. Marc Holliday has been the Chief Executive Officer at SL Green Realty Corp. since January 5, 2004 and serves as Chairman of the Board since January 2019. He serves as a Chairman and Chief Executive Off ...


CEO Compensation Analysis

Compensation vs. Market: Marc's total compensation ($USD13.36M) is about average for companies of similar size in the US market ($USD6.81M).

Compensation vs Earnings: Marc's compensation has been consistent with company performance over the past year.


Management Age and Tenure

8.8yrs

Average Tenure

53yo

Average Age

Experienced Management: SLG's management team is seasoned and experienced (8.8 years average tenure).


Board Age and Tenure

5.3yrs

Average Tenure

66yo

Average Age

Experienced Board: SLG's board of directors are considered experienced (5.3 years average tenure).


Insider Trading

Insider Buying: SLG insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$567,00025 Jul 19
Edwin Burton
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares7,000
Max PriceUS$81.00
SellUS$556,93808 May 19
Betsy Atkins
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares6,470
Max PriceUS$86.08
SellUS$230,60006 Feb 19
Craig Hatkoff
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares2,500
Max PriceUS$92.24

Ownership Breakdown


Management Team

  • Marc Holliday (53yo)

    Chairman & CEO

    • Tenure: 15.8yrs
    • Compensation: US$13.36m
  • Andrew Levine (60yo)

    Chief Legal Officer

    • Tenure: 18.9yrs
    • Compensation: US$1.61m
  • Andrew Mathias (45yo)

    President & Director

    • Tenure: 5.3yrs
    • Compensation: US$10.41m
  • David Schonbraun (41yo)

    Co-Chief Investment Officer

    • Tenure: 8.8yrs
  • Ed Piccinich (56yo)

    Chief Operating Officer

    • Tenure: 1.8yrs
  • Chris Gulden

    Senior Vice President of Leasing

    • Tenure: 0yrs
  • Steven Durels (60yo)

    Executive VP & Director of Leasing & Real Property

    • Tenure: 4.2yrs
  • Isaac Zion (48yo)

    Co-Chief Investment Officer

    • Tenure: 8.8yrs
  • Matt DiLiberto (45yo)

    Chief Financial Officer

    • Tenure: 4.8yrs
    • Compensation: US$5.24m
  • Maggie Hui (55yo)

    Chief Accounting Officer

    • Tenure: 4.8yrs

Board Members

  • Craig Hatkoff (65yo)

    Independent Director

    • Tenure: 8.8yrs
    • Compensation: US$383.93k
  • Stephen Green (81yo)

    Chairman Emeritus

    • Tenure: 0.8yrs
    • Compensation: US$2.06m
  • Marc Holliday (53yo)

    Chairman & CEO

    • Tenure: 15.8yrs
    • Compensation: US$13.36m
  • Betsy Atkins (66yo)

    Independent Director

    • Tenure: 4.5yrs
    • Compensation: US$372.50k
  • John Alschuler (71yo)

    Lead Independent Director

    • Tenure: 9.8yrs
    • Compensation: US$470.67k
  • Edwin Burton (76yo)

    Independent Director

    • Tenure: 22.8yrs
    • Compensation: US$406.50k
  • John Levy (83yo)

    Independent Director

    • Tenure: 22.8yrs
    • Compensation: US$363.07k
  • Andrew Mathias (45yo)

    President & Director

    • Tenure: 5.3yrs
    • Compensation: US$10.41m
  • Lauren Dillard (43yo)

    Independent Director

    • Tenure: 2.8yrs
    • Compensation: US$418.33k

Company Information

SL Green Realty Corp.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: SL Green Realty Corp.
  • Ticker: SLG
  • Exchange: NYSE
  • Founded: 1997
  • Industry: Office REITs
  • Sector: Real Estate
  • Implied Market Cap: US$6.900b
  • Market Cap: US$6.626b
  • Shares outstanding: 85.77m
  • Website: https://www.slgreen.com

Number of Employees


Location

  • SL Green Realty Corp.
  • 420 Lexington Avenue
  • New York
  • New York
  • 10170
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SLGNYSE (New York Stock Exchange)YesCommon StockUSUSDAug 1997
GEIDB (Deutsche Boerse AG)YesCommon StockDEEURAug 1997
0KZ6LSE (London Stock Exchange)YesCommon StockGBUSDAug 1997
SLG.PRINYSE (New York Stock Exchange)PFD SER IUSUSDAug 2012

Biography

SL Green Realty Corp., an S&P 500 company and New York City's largest office landlord, is a fully integrated real estate investment trust, or REIT, that is focused primarily on acquiring, managing and maxi ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/21 23:44
End of Day Share Price2019/10/21 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.