SL Green's High Leverage Is A Red Flag: Analyst Downgrades Stock
Portfolio Pulse from Lekha Gupta
BMO Capital Markets analyst John P. Kim has downgraded SL Green Realty Corp (NYSE:SLG) to Market Perform from Outperform, citing high leverage and potential refinancing challenges due to higher interest rates. Despite this, SLG shares have risen 56% over the past three months, and the company has a strong leasing pipeline that could drive occupancy growth. Kim also lowered revenue estimates for FY23 and FY24.
August 17, 2023 | 5:43 pm
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SL Green Realty Corp has been downgraded by BMO Capital Markets due to high leverage and potential refinancing challenges. However, the company's strong leasing pipeline could drive occupancy growth.
The downgrade by BMO Capital Markets due to high leverage and potential refinancing challenges could negatively impact SLG's stock price in the short term. However, the company's strong leasing pipeline could offset some of this negative impact by driving occupancy growth.
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