SL Green REIT Shows Commercial Property Strength

Excerpt from our One Page Annotated Wall Street Journal Summary (receive it by email every morning by signing up here):

HEARD ON THE STREET: Trust Loads Up On New York's Trophy Properties

• Summary: New York Office REIT SL Green Realty Corp (SLG) has outperformed all other publicly traded office REITs this year and the past three years. Its stock is still attractive due to its plans to add new properties in New York. Occupancy and rental rates in New York are strong, and the company's stock price doesn't fully reflect the value of the office buildings it owns. Its currently properties are concentrated in mid-town, where it is underwriting rental rate increases of 25-30% over the next three years. Bears point to excessive compensation for SL Green's executives.
• Comment on related stocks/ETFs: The article provides more details about why REITs are outperforming the residential market. See further discussion of the lack of correlation between the US housing and commercial property markets.