SL Green Realty downgraded to Market Perform from Outperform at BMO Capital

BMO Capital analyst John Kim downgraded SL Green Realty to Market Perform from Outperform with a price target of $41, down from $47, following the investor conference. SL Green’s 12.9% dividend cut was a "prudent move," although it may have to supplement its common with a special dividend in 2023, due to dispositions, Kim tells investors in a research note. This may be a "clearing event" as real estate investment trusts tend to see improved performance after an announced dividend cut, but SL Green needs to execute on leasing and dispositions in an "uncertain demand environment," says the analyst. He points out that the company’s 2023 guidance was well below Street estimates.