SL Green Sees $1.20 FFO Guidance Boost From One Vanderbilt

SL Green Realty (SLG) raised its 2026 funds from operations (FFO) guidance by $1.20 a share, with roughly two-thirds of the increase tied to an accounting change at One Vanderbilt.

The New York office landlord now expects FFO of $8.55 to $8.85 a share, up from a prior range of $7.35 to $7.65. The $0.80 uplift from One Vanderbilt reflects a shift to cash-basis accounting for the tower's ground lease, which eliminates a non-cash rent expense, the company said.

The remaining $0.40 of the guidance increase came from stronger-than-expected leasing in Manhattan, where SLG signed 1.2 million square feet of deals in the first half of the year. The company cited demand from law firms and financial services tenants for premium space.

Same-store cash net operating income rose 6.2% in the second quarter, driven by higher occupancy and rent bumps on existing leases. SLG ended the quarter with 92.1% occupancy in its Manhattan portfolio, up from 90.8% a year earlier.

CEO Marc Holliday told analysts the company sees