SL Green Realty Corp (SLG)

Great company, assets, and management. Biggest landlord in Manhattan, which has enjoyed greater return-to-work than any other city. Stock's fully priced, so he exited. Good growth ahead, but see his Top Picks.

She sold it. Trades at 12x PE with very limited FFO growth and pays a 4.5% dividend. It's outpaced any of her REITs by a mile. She sold because she wanted to buy something else. This moved up a lot so she took profits.

Manhattan's biggest office landlord. Since the cool CPI print on July 11, shares have popped 16%. Then, they reported a surprising good quarter with occupancy at 89.6% and FFO beating at $2.05, up 43% so far this year. They also raised their full-year forecast. The CEO dismissed claims of a weakening office sector, noting that Blackstone, Wells Fargo and other big companies are expanding their office needs in New York. Where is the office RE crash? It pays a 4.5% dividend yield, too.

Is too exposed to office properties.

High volatility. Thinks highly of management. In office, buy and hold is not a good strategy. What is good is buy, fix, lease up, sell, recycle capital, develop. And SLG is good at that. Oversold. Hard to be positive on the sector. Be selective on entry point, volatility might help you out.

Office REITs haven't recovered from Covid as workers resist returning to the office and rising interest rates are eating into revenues. SLG is down 33% YTD as it suffered two downgrades and price targets slashed yesterday: ugly balance sheet and many older buildings with little demand. Debt to EBITDA is the worst int his group. SLG plans to sell over $2 billion in properties, but who wants to buy an office building now? Paying 15% now, a dividend cut in inevitable. This is ugly all around.

Properties in Manhattan. Sold off drastically recently and thinks there are neat opportunities here.