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SL Green Cuts Guidance with Virus Hampering NYC Rent Collection

The REIT lowered its guidance for the year amid a slowdown in new leases and rent cuts.

(Bloomberg)—SL Green Realty Corp., a major New York landlord, lowered its guidance for 2020 as it faces economic disruption from the coronavirus outbreak.

The real estate investment trust said funds from operations, a key industry metric, would be $6.60 to $7.10 per share this year, down from its previous range of $7.25 to $7.35.

The company said it faces a slowdown in new leases and rent cuts in the coming months and that it could struggle to collect payments from tenants and holders of its debt. It could also see construction delays and higher costs from new safety measures, according to a statement on Wednesday.

SL Green has seen its shares plunge this year amid concerns that the coronavirus pandemic will weigh on real estate values, particularly in big cities hit hard by the virus. The company announced last month that a $815 million deal to sell the former Daily News building in Manhattan collapsed and said it was suspending share buybacks.

The New York-based company has been trying to sell loans tied to New York properties as it seeks to raise cash.

To contact the reporter on this story: Natalie Wong in New York at [email protected].

To contact the editors responsible for this story: Craig Giammona at [email protected]

Christine Maurus

© 2020 Bloomberg L.P.

TAGS: Office Leasing
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