SL Green (SLG) Stock: Dividend Cut, FFO vs FAD, Debt (2026)

The dividend: from $0.2575 a month to $0.6175 a quarter

The 10-K for 2024 shows the dividends declared per common share in the statement of equity. The 2022 figure includes a special dividend paid in stock, which the same table lists as a separate line. Since 2024 the filings give the monthly rate.

Preferred holders come first. The 6.50% Series I preferred stock (9,200,000 shares, $25 liquidation preference) receives $1.625 a share a year, paid quarterly, and perpetual preferred dividends were $7.5 million for the first half of 2026. Preferred and redeemable units add to the stack: the Operating Partnership issued 172,809 Series X units (3.00%, convertible at $80.00) on October 31, 2025 and 252,000 Series Y units (5.00%) on March 4, 2026, both as part of the price of property interests. The company puts the liquidation value of preferred equity, units and redeemable equity at $434.3 million.

The move to quarterly also distorts the cash-flow statement. Dividends paid on common and preferred stock were $52.7 million in the first half of 2026 against $120.4 million a year earlier, but $49.0 million of dividends and distributions were payable at June 30 (the Q2 dividend, paid July 15) against $2.5 million at December 31, 2025. The drop in cash paid is timing, not only the cut.

Dividend against FFO and FAD, year by year

FFO is SL Green's Nareit-style funds from operations. FAD is its own cash-oriented measure: FFO plus non-real-estate depreciation, non-cash items and similar add-backs, less straight-line rental income, free rent net of amortization, second-generation tenant improvements and leasing costs, and recurring capital spending, including the joint venture share of those items. SL Green does not give a dividend payout ratio on FAD in the files we read, so the ratios below are ours: dividend per share divided by FFO per diluted share, and by FAD per diluted share and unit.

Two items inside FFO make 2024 and 2025 hard to compare. The Q2 2026 release says first-half 2025 FFO of $3.03 included $71.6 million, or $0.94 a share, of income from the repayment of a commercial mortgage investment at 522 Fifth Avenue, net of $0.19 of investment reserves. The supplemental also lists a gain on early extinguishment of debt, including the joint venture share, of $57.2 million in Q3 2025; the FFO reconciliation does not remove debt-extinguishment gains, so we read it as inside Q3 2025 FFO of $1.58 (about $0.75 a share, our arithmetic). Diluted shares and units are about 76 million, so $1 a share is about $76 million.

Quarter by quarter: the gap opens in Q4 2025

The table uses the annual dividend rate divided by four ($3.09/4 in 2025; the declared $0.6175 in 2026) so every quarter has a figure; in 2025 the company paid monthly.

Q1 2026 FFO of $0.84 was net of a $4.8 million write-off of deferred financing costs ($0.06) and included $2.0 million of positive derivative fair-value adjustments; Q1 2025 FFO of $1.40 included $25.0 million, $0.33 a share, from a mortgage investment resolution. GAAP results are weaker than FFO: the net loss to common stockholders was $0.38 a share in Q2 2026 against $0.16, $1.20 in Q1 2026 and $1.49 in Q4 2025.

Why FAD is so low: the lines that moved

Both quarters start from FFO and subtract. The table shows the second quarter of 2026 against the second quarter of 2025 as the supplemental gives them.

The largest swing is the straight-line and other non-cash line, $30.9 million against $0.4 million; the supplemental does not say what is in it, and we do not know whether it relates to the One Vanderbilt income in the guidance. The second is FFO itself, which in Q2 2025 contained the 522 Fifth Avenue income. Tenant improvements and commissions were lower in Q2 2026 than a year earlier; they were not in Q1 2026, when commissions were $9.6 million. The 10-Q expects, for the rest of 2026, $70.0 million of leasing capital spending and $25.2 million of recurring capital spending on consolidated properties, and a $71.5 million share of capital spending at joint ventures (part of it funded by construction loans or reserves).

The raised guidance and One Vanderbilt

On July 22, 2026 the company increased 2026 FFO guidance from $4.40–$4.70 (given December 5, 2025) to $5.60–$5.90 a share, and net income guidance from a loss of $0.27 to income of $0.03 to $0.20–$0.50. It describes the $1.20 midpoint increase as $0.40 of higher NOI, fees and other income and $0.80 of “additional income that will be recognized from One Vanderbilt Avenue.”

What the filings let us say: SL Green owns 55.01% of One Vanderbilt Avenue through a joint venture (debt of $3.0 billion at 2.95% due July 2031, $1.65 billion at SL Green's share), and the property was 11.9% of annualized cash rent from office properties in Q2 2026. The 10-Q's related-party note says entities owned by the CEO and a former president hold interests entitling them to a share of profits above SL Green's capital contributions of about 1.27% and 0.85% on the property and 1.92% and 1.28% on SUMMIT One Vanderbilt, that SL Green has a right to repurchase them on the seventh anniversary of stabilization, and that they are carried in mezzanine equity. The note does not connect any of that to the guidance, and we are not claiming it does. What the filings do not say is whether the $0.80 is cash, how it is recognized, or whether it repeats. The Q3 release on October 21 is the first place to look.

Occupancy and leasing

The company expects the first measure to reach 95.0% by December 31, 2026. The 10-Q gives weighted average leased occupancy of 94.8% for all 27 Manhattan office buildings (23,971,485 square feet), 86.5% for retail and 79.9% for six suburban office buildings. Same-store cash NOI including joint ventures and excluding lease termination income rose 4.3% in Q2 and 3.4% in the half.

Q1 2026 was the highest first-quarter leasing volume in the company's 28-year history, the release says. Concessions feed, in part, the tenant-improvement and commission lines of FAD as leases commence, and leases signed in the first half (104 leases, 1,374,425 square feet, 8.8 months of free rent on average) have not all started paying cash.

Concentration: a few buildings and one large tenant

The six properties add to 45.1% (our arithmetic). On expirations, the supplemental shows 6.0% of consolidated Manhattan square feet expiring in 2026 and 9.5% in 2027; at the unconsolidated joint ventures 19.9% of expiring square feet falls in 2031, the year of the Paramount lease.

Debt: size, cost and what falls due

The market-capitalization ratio shows how much of the leverage picture depends on the share price: the same debt was 76.7% of capitalization when the stock closed at $36.94 and 70.6% at $51.77.

The table is the 10-Q's, which includes as-of-right extension options but excludes other extensions. Rest of 2026 and 2027 together are $1.85 billion of consolidated principal (40.6% of consolidated debt) and $2.52 billion of joint venture debt at SL Green's share (42.1%): $4.37 billion in all (41.5%, our arithmetic).

The items behind the near years, from the supplemental's loan schedules:

• Consolidated: 100 Church Street $365.0 million (current maturity December 2026, as-of-right extension to June 2028), a $100 million term loan due November 2026, Landmark Square $100 million (January 2027), 485 Lexington Avenue $450 million (February 2027), The Olivia $250 million (February 2027), a $300 million term loan (May 2027).
• Joint ventures at SL Green's share: 280 Park Avenue $537.5 million (September 2026, extension to September 2028), 650 Fifth Avenue $137.5 million (July 2026), 245 Park Avenue $885.8 million (June 2027). For 650 Fifth Avenue the supplemental says the company “is in discussions with the lender on resolution of the past maturity.”

Refinancing already done in 2026: the $1.65 billion five-year One Madison Avenue loan at 5.81% (SL Green owns 25.5%), which replaced a construction facility with $1.171 billion outstanding, and a March amendment that extended the $1.25 billion revolver to June 2031 and created a $750 million term loan due June 2031, each 25 basis points cheaper.

Shares, buybacks and the stock price

These are the closing prices the company prints in its supplemental, not a current quote. Common shares outstanding were 70,852,556 at June 30, 2026 against 71,158,530 at December 31, 2025; OP units rose from 4,877,891 to 5,547,004, so shares and units together were 76,399,560 against 76,036,421. The company has a $3.5 billion buyback program, under which 36,390,839 shares have been repurchased in total. It bought 283,120 shares in the first half of 2026 ($14.1 million in Q2 at an average $49.67) and, in the 10-K's words, “did not repurchase any shares under the program during the year ended December 31, 2025.” At June 30, 2026 the market value of the common equity was $3.96 billion.

What changed in the second quarter

• Sales: the residential and retail of 7 Dey Street for $222.6 million (net cash $23.7 million) and 49.0% of the 346 Madison Avenue development to Mori Building at a $175.0 million valuation (net cash $94.9 million). A contract to sell 10 East 53rd Street for $312.2 million, expected to close in the third quarter with about $100.0 million of net proceeds for corporate debt repayment, was signed in May; we found no filing confirming that it closed.
• Debt fund: $94.7 million deployed in Q2 of the $1.3 billion SLG Opportunistic Debt Fund, $590.5 million in total of which $517.5 million is funded. Debt fund investments on the balance sheet were $379.0 million against $153.0 million at December 31, 2025, while the older debt and preferred equity book fell to $113.1 million from $168.4 million (Q2 2025: $315.7 million), at a 7.51% yield in the quarter.
• Fee income was $19.4 million against $12.2 million a year earlier, and SUMMIT Operator revenue $31.5 million.
• Held for sale: $214.6 million of assets at June 30.

How it compares with non-traded vehicles

A listed REIT like SL Green marks its value to the market every day and can borrow in public markets; a non-traded vehicle publishes a net asset value and limits withdrawals. The two have different failure modes: here, the dividend can be reset by the board (it was, in March), the share price moved from $36.94 to $51.77 in one quarter, and the debt is public. For the structural differences, read non-traded versus publicly traded REITs. For other Manhattan office owners on the same filing dates, see Vornado's dividend, FFO and FAD and BXP's, and for ten office REITs side by side our office REIT table.

What the next report should show

SL Green announced on August 31, 2026 that it will release third-quarter results after the market closes on Wednesday, October 21, 2026, with a conference call on October 22 at 2:00pm ET. As of October 19, 2026 the Form 10-Q for the quarter ended September 30, 2026 is not on EDGAR. In the last three quarters the 10-Q followed the earnings 8-K by 14 to 18 days (October 16 to November 3, 2025; April 16 to May 1, 2026; July 23 to August 6, 2026). The June quarter's supplemental said the 10-Q would be filed “on or before August 10, 2026”; the equivalent deadline for September 30 would be November 9, 2026 (our inference from that date, not a company statement).

What a holder or reader can do with this

This page is analysis of public documents, not investment, legal or tax advice. Things the filings let you check yourself:

• Pick the yardstick and name it. $0.6175 is 43.2% of Q2 FFO and 208% of Q2 FAD. Both are true; they measure different things, and SL Green does not publish a FAD payout ratio in the files we read.
• Read the cut as a policy choice. The company said it wanted liquidity for debt buybacks, share repurchases and development; the dividend was set by the board in March, before the guidance was raised in July.
• Look at the second half, not the first. First-half FFO is $2.26 and FAD $33.7 million; the guidance depends on a One Vanderbilt item the filings do not itemize.
• Put the loan dates on a calendar. 650 Fifth Avenue (past maturity), 280 Park Avenue (September 2026), 100 Church Street (December 2026) and the 2027 wall of $4.37 billion in total with joint ventures.
• Know the tax side. REIT dividends are reported differently from ordinary dividends; see our guide to estimated tax on REIT and BDC income.

FAQ

All figures are from SL Green Realty Corp. (SEC CIK 1040971; SL Green Operating Partnership, L.P. files the same documents) filings read on EDGAR on October 19, 2026: Forms 10-K for 2025 (accession 0001628280-26-008669) and 2024 (0001040971-25-000010); the Form 10-Q for the quarter ended June 30, 2026 (0001628280-26-054436); the earnings releases (Exhibit 99.1) and supplementals (Exhibit 99.2) attached to Forms 8-K for Q4 2024 (0001040971-25-000005), Q1 2025 (0001040971-25-000014), Q2 2025 (0001040971-25-000027), Q3 2025 (0001628280-25-045181), Q4 2025 (0001628280-26-004077), Q1 2026 (0001628280-26-025419) and Q2 2026 (0001628280-26-049346); the Forms 8-K of December 5, 2025 (0001628280-25-055516), November 3, 2025 (0001104659-25-105095) and March 6, 2026 (0001104659-26-024682); and the company's press release of August 31, 2026 announcing the Q3 results date, as published on GlobeNewswire. Dividend-to-FFO and dividend-to-FAD percentages, FAD per share and unit, the 20.1% cut, the second-half FFO needed to reach guidance, debt due through 2027 and its percentages, debt-to-capitalization and debt-to-EBITDAre ratios, the six-property concentration total, dividend-to-price percentages and the 10-Q timing are our arithmetic or inference from those rows; FFO, FAD, EBITDAre, NOI and same-store measures are the company's own non-GAAP measures and definitions. The closing prices are those printed in the company's supplemental, not a current quote. This is analysis of public documents, not investment, legal or tax advice.