Why Is S.L. Green's Dividend So High?
The COVID-19 pandemic proved that working from home can be sustainable for most businesses. This realization has cast a shadow on the office real estate sector, especially office buildings in expensive cities. If companies can save money by reducing office space, many will do so. This has affected most office real estate investment trusts (REITs) and Manhattan landlord S.L. Greeen (NYSE: SLG) in particular. The stock has plunged in the past year and this is why its dividend yield is so high.
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S.L. Green holds interests in 61 buildings with 33.1 million square feet of space as of Dec. 31, 2022. Most of that is in Manhattan. The company has not recovered from the pandemic, and occupancy continues to fall. At the end of 2021, it stood at 92.1%, well below pre-pandemic levels. It fell throughout 2022, and the company ended the year with occupancy at 90.9%. According to recent data, Manhattan office workers are spending 30% fewer days in the office than in 2019.
Source Fool.com
