SL Green's two Manhattan office sales lift Q3 net income to $72.2M

SL Green's net income rose to $72.2 million in the third quarter, from $24.9 million a year earlier and $26.5 million in the second quarter, per Commercial Observer. Two Manhattan office sales drove the gain.

The REIT completed the sale of 10 East 53rd Street to Jeffrey Kaplan's Meadow Partners in August for $312.2 million and collected net proceeds of $99 million. In September it sold 110 Greene Street to Natora Group for $226 million and expects $216 million of proceeds.

Across both buildings, $538.2 million of gross price converts to $315 million of proceeds — $99 million collected, $216 million expected. The ratio differs: about 32 cents of net proceeds per dollar of price at 10 East 53rd Street, against roughly 96 cents at 110 Greene Street. When the Greene Street sale was announced, this publication argued it was better read as debt relief rather than a verdict on office demand.

Funds from operations came to $122.1 million, against $120.4 million in the third quarter of 2025 and $109.6 million in the second quarter. Total revenue rose to $273 million from $244 million.

SL Green signed 38 Manhattan office leases covering 591,108 square feet in the third quarter, versus 53 deals covering 445,161 square feet in the second quarter. The count fell by 15 while volume rose by about 146,000 square feet, so the average lease grew to roughly 15,600 square feet from about 8,400.

Among the signings was a 58,332-square-foot lease with German state bank Landesbank Baden-Württemberg at 1185 Avenue of the Americas.

CEO Marc Holliday said, "Higher rates impact all real estate businesses and most every industry." He described "a swing of about 150 basis points throughout the year" from already elevated starting levels, and said the move had a 25-cent impact on the back half of the year. He added that SL Green has hedged parts of its liabilities to lock in lower rates and that the effect "has not been nearly as great as it could have been."