SL Green Realty Neutral Vs. High Expectations, Citigroup Reports

In a report released this morning, Citigroup said that it views SL Green Realty Corporation's SLG 3Q report as neutral against high investor expectations. “Earnings were above our estimate and consensus, but were heavily influenced by the large volume of deal activity in the quarter,” Citigroup writes. “Cash NOI remains soft (down 5.6%), disappointing, but largely a backward looking metric that reflects weak 2009-10 leasing conditions. Fundamentals are turning in NYC and SLG reported positive rent spreads for the first time this year.” Citigroup maintains its Hold rating and models the portfolio underweight. SL Green Realty closed Monday at $70.04.