I still like NYC office real estate specialist SL Green (NYSE:SLG),
as I have for some time now. Even amidst a pretty warm REIT market (up
about 17% year-to-date), SL Green continues to do well, rising more than
6% since my last article and slightly outperforming Boston Properties (NYSE:BXP) and Kilroy (NYSE:KRC), while keeping pace with Vornado (NYSE:VNO).
Even with high occupancy rates and an a real estate cycle that many
believe is getting long in the tooth, SL Green is still looking for ways
to add value, including recycling its capital and expanding outside of
its core focus in office property.
I'm reluctant to abandon a good
company/stock only because of valuation; I think it's easier to have
certainty that you've found a good company than it is that you have the
valuation perfectly dialed in. Be that as it may, I'd probably be more
cautious about entering these shares now, particularly when there are
cheaper-looking Asian property developers out there, as well as other
financials and REITs that seem to offer more upside.
Continue reading here:
SL Green Realty Keeps Producing Value In A Hot Market
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