SL Green Realty (SLG) just posted fourth quarter funds from operations and revenue that topped Wall Street expectations, alongside strong Manhattan leasing metrics and updates on its multibillion dollar refinancing and asset sale programs.

Despite the quarterly beat, SL Green Realty's share price has been under pressure, with a 30 day share price return showing a 4.64% decline and a 1 year total shareholder return showing a 30.44% decline, pointing to fading momentum after earlier multi year gains.

If this office REIT story has you thinking about where capital might move next, it could be a good moment to broaden your search with fast growing stocks with high insider ownership.

So with SL Green posting a quarterly beat, experiencing a recent share price pullback, and trading below the average analyst price target, is the stock offering real value today, or are markets already pricing in any future growth?

Most Popular Narrative: 21.1% Undervalued

SL Green Realty's most followed narrative pegs fair value at $56.79 per share, above the last close of $44.78, framing a valuation gap that hinges on Manhattan leasing strength and future cash flows.

Value add developments and transformative projects (such as One Vanderbilt and the potential Caesars Palace Times Square casino) have the potential to unlock new high margin revenue streams, increase portfolio valuation, and materially expand SL Green's income base in the medium to the long term.

Want to see what kind of revenue resets and margin shifts would have to line up for that fair value to make sense? The narrative leans on changing office supply, a different earnings mix, and a future earnings multiple that might surprise you. The full story connects those pieces into one valuation case.

Result: Fair Value of $56.79 (UNDERVALUED)

However, that upside story still runs into real friction if high interest costs linger or key tenants leave and space sits empty longer than expected.

Build Your Own SL Green Realty Narrative

If parts of this story do not quite line up with your own view, or you would rather test the numbers yourself, you can build a custom narrative in just a few minutes with Do it your way.

A great starting point for your SL Green Realty research is our analysis highlighting 1 key reward and 3 important warning signs that could impact your investment decision.

Ready for more investment ideas?

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.