UPDATE: Bank of America Raises PO on SL Green Realty on Promising NYC Market

In a report published on Wednesday, Bank of America analyst James Feldman raised the price objective on SL Green Realty SLG from $96.00 to $101.00 and reiterated a Buy rating.

In the report, Bank of America noted, "SLG will capitalize vacancy at 180 Maiden Lane (AIG; SLG 50% stake) and 10 E. 53rd (Harper Collins; 55%) during redevelopment, making these move-outs earnings neutral. AIG may also extend short term. Interest in the space is healthy. Structured finance maturities will create some drag. SLG thinks it can maintain the balance, but at 100-200 bps lower yields. As an offset, $42M of EBITDA from signed leases, which could rise to $80-90M as redevelopments lease up, is scheduled to come on line. Grand Central office asset 425 Lexington will trade for $1K/SF after leasing costs (4.6% cap rate). Local buyers are very active in the acquisition market, based on robust outlooks for job and rent growth."

SL Green Realty closed Tuesday at $90.43.