SLG - SL Green Realty: Still A Buy Despite Recent Run
2024-07-09 07:44:37 ET
Summary
- SLG's stock suffered from extreme negative sentiment last year owing to the rate shock, work from home, and regional banking crisis.
- SLG's business is improving with debt reduction, increasing occupancy, and a strong leasing pipeline.
- Improving fundamentals and external tailwinds like resi conversions and rate cuts could lead to improving sentiment.
- Improving sentiment should mean a return to a normal valuation, so there is still upside to the stock.
In 2023, the rate shock, the durability of the work from home trend and the regional banking crisis combined to briefly take SL Green's ( SLG ) stock price below $20 a share , meaning that its market cap of about $1.3bn was less than half of the value of its flagship building One Vanderbilt . Those who recognised that the company was reducing its debt (especially floating rate), maintaining good occupancy levels and had loans not with regional banks but large ones like JPMorgan ( JPM ) and Wells Fargo (WFC), were able to buy into SLG’s impressive real estate portfolio at a significant discount....
SL Green Realty: Still A Buy Despite Recent Run