NYSE:SLG

Stock Analysis Report

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Executive Summary

SL Green Realty Corp., an S&P 500 company and Manhattan'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. More Details


Snowflake Analysis

6 star dividend payer and undervalued.


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

Stable Share Price: SLG has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

4.0%

SLG

2.1%

US REITs

1.3%

US Market


1 Year Return

-41.0%

SLG

-13.8%

US REITs

15.8%

US Market

Return vs Industry: SLG underperformed the US REITs industry which returned -16.1% over the past year.

Return vs Market: SLG underperformed the US Market which returned 13.8% over the past year.


Shareholder returns

SLGIndustryMarket
7 Day4.0%2.1%1.3%
30 Day-1.3%-3.5%-4.1%
90 Day-2.1%-0.5%8.4%
1 Year-38.1%-41.0%-10.6%-13.8%18.4%15.8%
3 Year-46.6%-52.7%13.1%0.07%38.2%29.0%
5 Year-48.3%-56.8%42.9%14.5%84.9%64.0%

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?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SLG ($48.27) is trading below our estimate of fair value ($101.63)

Significantly Below Fair Value: SLG is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: SLG is good value based on its PE Ratio (17.3x) compared to the US REITs industry average (32.7x).

PE vs Market: SLG is good value based on its PE Ratio (17.3x) compared to the US market (17.6x).


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 (0.7x) compared to the US REITs industry average (1.4x).


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?

-3.6%

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 (-3.6% per year).

Earnings vs Market: SLG's earnings are forecast to decline over the next 3 years (-3.6% per year).

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

Revenue vs Market: SLG's revenue (6.2% per year) is forecast to grow slower than the US market (9.9% per year).

High Growth Revenue: SLG's revenue (6.2% 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 (2.8%).


Next Steps

Past Performance

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

3.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SLG has a large one-off gain of $91.3M impacting its June 30 2020 financial results.

Growing Profit Margin: SLG's current net profit margins (18.9%) are higher than last year (18.8%).


Past Earnings Growth Analysis

Earnings Trend: SLG's earnings have grown by 3.2% 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 (-4.8%) over the past year, making it difficult to compare to the REITs industry average (3.3%).


Return on Equity

High ROE: SLG's Return on Equity (4.5%) is considered low.


Next Steps

Financial Health

How is SL Green Realty's financial position?


Financial Position Analysis

Short Term Liabilities: SLG's short term assets ($1.7B) exceed its short term liabilities ($264.5M).

Long Term Liabilities: SLG's short term assets ($1.7B) do not cover its long term liabilities ($7.0B).


Debt to Equity History and Analysis

Debt Level: SLG's debt to equity ratio (106.7%) is considered high.

Reducing Debt: SLG's debt to equity ratio has increased from 102.2% to 106.7% over the past 5 years.

Debt Coverage: SLG's debt is not well covered by operating cash flow (6.2%).

Interest Coverage: SLG's interest payments on its debt are not well covered by EBIT (2x coverage).


Balance Sheet


Next Steps

Dividend

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

7.33%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: SLG's dividend (7.33%) is higher than the bottom 25% of dividend payers in the US market (1.72%).

High Dividend: SLG's dividend (7.33%) is in the top 25% of dividend payers in the US market (4.94%)


Stability and Growth of Payments

Stable Dividend: SLG's dividends per share have been stable 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 (50.3%), 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 well covered by earnings (49.7% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

5.7yrs

Average management tenure


CEO

Marc Holliday (54 yo)

16.67yrs

Tenure

US$20,990,016

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 ($USD20.99M) is above average for companies of similar size in the US market ($USD5.75M).

Compensation vs Earnings: Marc's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Marc Holliday
Chairman & CEO16.67yrsUS$20.99m0.012%
$ 404.8k
Andrew Mathias
President & Director6.25yrsUS$12.18m0.40%
$ 13.7m
Matthew DiLiberto
Chief Financial Officer5.67yrsUS$3.22m0.0030%
$ 102.1k
Andrew Levine
Chief Legal Officer19.83yrsUS$4.70m0.019%
$ 661.3k
Edward Piccinich
Chief Operating Officer2.67yrsno datano data
David Schonbraun
Chief Investment Officer0.17yrno datano data
Maggie Hui
Chief Accounting Officer5.67yrsno datano data
Christopher Gulden
Senior Vice President of Leasingno datano datano data
Steven Durels
Executive VP & Director of Leasing & Real Property5.08yrsno datano data
Neil Kessner
Executive VP & General Counsel of Real Propertyno datano datano data
Richard Currenti
Senior VP & Director of Engineering17.25yrsno datano data
Parimala Rao
Senior Vice President of Information Technology5.42yrsno datano data

5.7yrs

Average Tenure

55yo

Average Age

Experienced Management: SLG's management team is seasoned and experienced (5.7 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Marc Holliday
Chairman & CEO16.67yrsUS$20.99m0.012%
$ 404.8k
Andrew Mathias
President & Director6.25yrsUS$12.18m0.40%
$ 13.7m
Craig Hatkoff
Independent Director9.67yrsUS$330.50k0.0076%
$ 262.4k
Stephen Green
Chairman Emeritus1.67yrsUS$956.00kno data
Betsy Atkins
Independent Director5.42yrsUS$321.00k0.0080%
$ 275.8k
John Alschuler
Lead Independent Director10.67yrsUS$383.50k0.0011%
$ 36.9k
Edwin Burton
Independent Director23.67yrsUS$353.50k0.0040%
$ 138.3k
John Levy
Independent Director23.67yrsUS$313.50k0.019%
$ 658.9k
Lauren Dillard
Independent Director3.75yrsUS$372.50kno data

6.3yrs

Average Tenure

67yo

Average Age

Experienced Board: SLG's board of directors are considered experienced (6.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

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$3.448b
  • Market Cap: US$3.536b
  • Shares outstanding: 74.28m
  • 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
S1LG34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH 2 REPR 1 COMBRBRLJan 2020

Biography

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


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/09/28 23:36
End of Day Share Price2020/09/28 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.