On this page of StockholderLetter.com we present the latest annual shareholder letter from SL GREEN REALTY CORP — ticker symbol SLG. Reading current and past SLG letters to shareholders can bring important insights into the investment thesis.

 •  4/22/2025 Letter Continued (Full PDF)
 •  4/21/2023 SLG Stockholder Letter
 •  4/19/2024 SLG Stockholder Letter
 •  More "REITs" Category Stockholder Letters
 •  SLG Benford's Law Stock Score = 100

SLG Shareholder/Stockholder Letter Transcript:

SL GREEN REALTY CORP.
2024 ANNUAL REPORT


GREEN
MEANS GO
After calling the bottom of the market in 2023, SL Green came roaring
out of the gate in 2024, achieving the vast majority of our aggressive
goals for the year and proving the doubters wrong about the future of
New York City office. This year   s annual report celebrates one of our
most successful years ever. Our foundation is strong, and we   re primed
and ready to take advantage of what lies ahead.
We are built to last!
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DEAR
SHAREHOLDERS
Marc Holliday
Chairman, Chief Executive Officer
& Interim President
In uncertain times, SL Green shines.
A year and a half ago, we sensed the climate in New York was
changing; we believed that 2024 would be the pivotal year
in which tenant demand and capital markets would begin to
meaningfully improve for New York City commercial real estate.
It was not a speculative bet on our part, but rather an educated
call based on all the data, trends and events we were seeing
unfold in the second half of 2023.
The result was a remarkable year for our Company by nearly
every metric. After being the first to call the bottom of the
commercial market in 2023, we set ambitious stretch goals
for 2024 and proceeded to exceed almost all of them. It wasn   t
just a good year in the context of broader turbulence     it was
a top three year in our history, full stop. We crushed our leasing
goals, increased our occupancy, reduced, extended and
modified our debt, and far outpaced our competitors in
Total Return to Shareholders (TRS).
When we held our annual Investor Conference in December    
and indeed when we began drafting this report in February    
market forces were converging in a way that felt extremely
positive for our business, with a strong local economy, growing
demand for space within our portfolio, relatively stable interest
rates and essentially no new inventory coming online in core
Midtown anytime soon.
As we near our April publication date, most of that is still true,
although broader economic uncertainty and market volatility
have complicated the story to a degree. Some investors and
potential partners may reassess how things will shake out in
a global context that seems to change not by the month or
week, but by the day and hour. Yet as we go to print on this
year   s annual report, we have exceeded 710,000 square feet
of leasing year-to-date, and the pipeline of new leases remains
strong at over 1.1 million square feet of pending deals and
advanced term sheets. We are also achieving record pre-sales
for our Summit experiential attraction, a solid indicator of
continuing high demand from local residents and tourists.
Notwithstanding the cautious tone in the capital markets,
the underlying supply and demand fundamentals have not
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SL GREEN ANNUAL REPORT 2024

changed, and that   s why we remain confident about the year
ahead. It is in times of uncertainty that SL Green separates
itself from the pack, and we are prepared to do it again in
2025, going back on offense from a position of strength. Just
as we leveraged our deep understanding of this market to
make the right calls leading into 2024, I am confident that we
will do the same in 2025 as we navigate the cross-currents
of positive economic data with a more cautious tone among
business leaders.
LOOKING BACK AT 2024
The past year was exceptional     one that exceeded even
our own lofty expectations. Our long-term strategy paid big
dividends for our shareholders with market-leading returns,
exceeding our goals across almost every metric and area of
the business.
Here   s what we accomplished:
    Leased more than 3.6 million square feet of space,
our third-highest leasing volume year ever, dramatically
exceeding a 2.0 million-square-foot target.
    Increased occupancy to 92.5%, exceeding our goal and
signaling the beginning of our march back to our historical
occupancy levels.
    Closed on the SLG NYC Opportunistic Debt Fund, the
only opportunistic fund of its size focused solely on the
New York City commercial market.
    Opened One Madison Avenue to rave reviews, and signed
a series of leases bringing occupancy to more than 73% as
of Q1 2025.
ONE MADISON AVENUE
    Sold out our condo development with Armani at
760 Madison, and continued to successfully operate the fully
leased apartments at 7 Dey Street, again showing our ability to
deliver and operate world-class residential product.
    Launched conversion of 750 Third Avenue after successfully
advocating for new policies to enable widespread
conversions.
    Announced a new SUMMIT location in Paris at the Tour
Triangle, with epic views of the Eiffel Tower and the entire
city, set to open in 2027. This is the latest example of how
SL Green is evolving into a firm with deep expertise in
hospitality and entertainment, as we also extended our
unique partnership with Chef Daniel Boulud and Dinex this
year with the opening of La T  te d   Or at One Madison, which
was just added to the MICHELIN Guide New York for 2025.
    Reduced outstanding debt by $1.4 billion, while extending,
modifying or refinancing another $5.2 billion in debt, fortifying
our balance sheet heading into 2025.
    Achieved an annual Total Return to Shareholders of
58.2%, far exceeding the national real estate office index
and finishing first among all national REITs with market
capitalizations in excess of $1.0 billion.
2025: MACRO TRENDS LOOK VERY STRONG
Despite some short-term uncertainty, long-term macro trends
are all working in our favor to create potentially one of the
best markets we   ve seen in decades, building on the enormous
success we had in 2024.
While we understand the ongoing anxiety on interest rates,
they remain relatively stable, with the Fed standing pat in
March, but signaling potentially two rate cuts later this year.
Lower rates are always preferable, but Treasury yields in
the low 4% range is very comfortable territory for us given
our unique access to capital and trusted partners. With a
proven ability to create value through asset development and
improvement, rather than financial leverage, we know we can
succeed in this context.
Both the supply and demand sides of the business in New York
are also looking increasingly favorable. We are seeing very
strong demand throughout our portfolio, and have signed
800,000 square feet of new leases since December. It is evident
that incrementally higher demand is resulting in net absorption,
as our pipeline continued to grow during the same period and
now exceeds 1.1 million square feet. And, contrary to conventional
thinking, it   s not just the new trophy buildings that are leasing    
according to CBRE, of the Manhattan office leases signed in
2024, 86% by square footage and 91% by number of leases were
signed in buildings more than 25 years old.
Supply in the core Midtown districts where we are concentrated
is practically non-existent in well-located and amenitized
buildings; market availability rates are below 7.0% on Park Avenue.
With practically no new ground-up office projects currently
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 4/22/2025 Letter Continued (Full PDF)