Capitalizing NYC’s Top Office Properties with SL Green’s Matt DiLiberto, interviewed by Laura Jackson

At the YMWREA June Luncheon, SL Green Realty CFO Matthew DiLiberto shared insightful perspectives on the company’s strategic direction and market outlook in an interview with Former Chairman Laura Jackson. DiLiberto emphasized a disciplined approach to navigating the real estate market, echoing the sentiment of a BMO analyst who recently lauded SL Green as the best REIT stock over the past 18 months. “Keep your head down, execute, and the market will follow,” DiLiberto stated, reinforcing the importance of consistent performance regardless of broader market conditions.

Rising interest rates have prompted SL Green to pause its stock buyback program in favor of selling buildings with a goal of reducing the firm’s debt. This prudent balance sheet management allows SL Green to go back on offense, focused primarily on debt investments that have a higher risk adjusted return than equity investments.  DiLiberto highlighted the firm’s extensive 20+-year history in NYC-specific debt markets, and their proactive approach in raising funds from institutional investors all over the world.

DiLiberto also discussed SL Green’s robust leasing pipeline, currently at 1.5 million square feet, with a majority of transactions in the 25,000 to 35,000 square foot range. He pointed to the success of notable projects like 245 Park Avenue, where SL Green’s $2B valuation confirmed office market pricing and DiLiberto was also proud of the long history of One Vanderbilt Avenue, which is now fully leased at record rents, following a 20-year assemblage effort.

Additionally, DiLiberto touched on the future of the NYC office market, including the potential for office to residential conversions that will address both underperforming office properties as well as the city’s housing needs.  He underscored the critical role of a functioning financing market to spur more real estate transactions, and highlighted SL Green’s continued commitment to innovation and strategic growth in the ever-evolving real estate landscape.

While the monthly YMWREA luncheons are adjourned for the summer, there is a significantly busy summer ahead with a mix of social and charitable outings. Check out the website for more details.