Why Is SL Green's Dividend So High?
One of the most out-of-favor sectors right now is the office real estate investment trust (REIT) sector. Fears of impending losses in commercial real estate mortgages linked to office properties have added to the worries surrounding the regional banks. One of the companies hardest hit by the office problem is SL Green Realty (NYSE: SLG), whose share prices have fallen enough to create a 14.6% dividend yield.
Why is its dividend yield so high, and is it sustainable?
SL Green is known as "Manhattan's landlord." The company owns and leases office buildings in New York City. It owns 51 buildings with 29.7 million square feet. SL Green's primary tenants are in financial services, technology, advertising, media, information, and professional services. It also leases out some residential and retail spaces. As of the end of 2023, SL Green reported an occupancy percentage of 90.3%. This is much lower than the pre-pandemic level of 94.5% at the end of 2019.
Source Fool.com
