SLG Stock Forecast & Price Target

SL Green Realty is benefiting from a tighter Manhattan office market, where limited supply is improving the outlook for assets like 1515 Broadway and Worldwide Plaza, while strong corporate earnings and healthy office leasing volume support demand. The company’s operating outlook is also improving, with FFO expected to rise to $5.76 in 2026E and $6.08 in 2027E, occupancy projected to improve by roughly 100 bps in 2026 and another 90 bps in 2027, and management seeing $1.00 of the $1.20 earnings improvement as recurring. Even after recent share strength, its valuation remains reasonable at 9.8x 2026E NFFO versus 10.0x 2027E FFO, and successful dispositions could put it ahead of its $2.5 billion stretch goal.

SL Green Realty is facing a cautious outlook because a large 1Q26 miss versus estimates forced a reduction in 2026 FFO to $4.45 per share from $4.67, still below the $4.61 consensus, signaling that near-term earnings momentum is weaker than expected. Although management’s $4.40-$4.70 guidance range implies a midpoint of $4.55, the company still depends on a significant ramp for the rest of the year and on disposition timing and pricing that could materially affect results. Even with a modest 2027 recovery to $4.59 per share, the outlook remains pressured by the gap between leased and economic occupancy, while higher-for-longer rates, softer tenant demand, and capital cost uncertainty add further downside risk.