SL Green Realty Reports Loss Despite Revenue Growth

SL Green Realty Corp. reports a net loss of $21.1M in Q1. Revenue increased by 28%, but earnings per share dropped to -$0.30. Professional investors should analyze key metrics as stock outlooks could shift.

Date: 17-04-2025

AI Rating: 5

Corporate Earnings Snapshot: SL Green Realty Corp. (SLG) has reported a troubling financial performance in the first quarter. The company experienced a significant net loss of $21.1 million, a stark contrast to the net income of $13.1 million reported in the same quarter last year. This shift has been reflected in its Earnings Per Share (EPS), which dropped from a gain of $0.20 to a loss of $0.30.

In contrast, SLG's total revenues have shown a positive trend, rising by 28% year-over-year to reach $239.8 million. The increase in revenue is attributable to growth in rental income, investment returns, and interest revenue from real estate loans held by consolidated securitization vehicles, indicating a possible recovery in demand or effective management strategies in asset financing.

However, the decrease in Funds From Operations (FFO) is concerning, as they fell to $1.40 per share compared to $3.07 in the previous year. This indicates that while revenues are improving, the overall capacity to generate cash flows for distributions remains deeply affected.

Given these mixed results, investors should approach SLG with caution. The increase in revenue despite losses could be viewed positively; however, the significant dip in EPS and FFO may raise flags about future profitability and operational efficiency.

Stocks: SLG