$20 Million Exit From Manhattan’s Biggest Office Landlord Raises Questions as Stock Slides 30%

Toronto-based Vision Capital Corp sold its entire stake in SL Green Realty (NYSE:SLG) during the third quarter, with an estimated transaction value of about $20.43 million as of September 30.

What Happened

Vision Capital Corp fully liquidated its SL Green Realty (NYSE:SLG) position in the third quarter, according to a filing with the Securities and Exchange Commission dated November 13. The fund sold 330,000 shares in the period, reducing its SLG holdings to zero. The transaction value, based on quarterly average pricing, was $20.43 million. The position was previously 9.13% of the fund's AUM as of the prior quarter.

What Else to Know

Top holdings after the filing:

• NYSE: SUI: $36.36 million (21.2% of AUM)
• NASDAQ: EQIX: $35.30 million (20.6% of AUM)
• NYSE: IVT: $31.65 million (18.4% of AUM)
• NYSE: COLD: $24.47 million (14.2% of AUM)
• NYSE: EGP: $18.79 million (10.9% of AUM)

As of Thursday, SLG shares were priced at $45.87, down 32% over the past year and well underperforming the S&P 500, which is instead up about 16% in the same period.

Company Overview

Metric	Value
Price (as of Thursday)	$45.87
Market Capitalization	$3.48 billion
Revenue (TTM)	$910.38 million
Dividend Yield	6.7%

Company Snapshot

SL Green Realty Corp. is the largest office landlord in Manhattan, with a portfolio focused on high-value commercial properties. It operates as a real estate investment trust (REIT), acquiring and maximizing the value of commercial real estate assets.

Foolish Take

SL Green is Manhattan’s largest office landlord, and its latest quarter showed tangible signs of stabilization in a tough market. Funds from operations came in at $1.58 per share in the third quarter, up from $1.13 a year earlier, while same-store occupancy climbed to 92.4%, with management guiding toward 93.2% by year-end. Leasing activity also picked up meaningfully, with more than 650,000 square feet signed during the quarter.

Yet the stock is down roughly 32% over the past year, reflecting persistent fears around office demand, refinancing risk, and long-term work-from-home dynamics. Vision Capital’s exit suggests those concerns still outweigh incremental progress for some investors, especially funds that prefer cleaner secular tailwinds. Its remaining top holdings skew toward residential and industrial firms, areas with clearer demand visibility and steadier cash flows.

Ultimately, SL Green might remain a high-risk, high-reward call on a Manhattan office recovery that is proving uneven and slow. The business is executing, but sentiment hasn’t caught up, and one investor is walking away for now.

Glossary

Stake: The ownership interest or investment a fund or individual holds in a company.
13F reportable assets: Assets that institutional investment managers must disclose quarterly to the SEC if they exceed $100 million in U.S. equity holdings.
Assets under management (AUM): The total market value of investments managed on behalf of clients by a fund or institution.
Liquidated: Sold off an entire investment position, converting it to cash.
Quarterly average pricing: The average price of a security over a specific quarter, used to estimate transaction values.
Dividend yield: Annual dividends paid by a company divided by its share price, expressed as a percentage.
Real estate investment trust (REIT): A company that owns, operates, or finances income-producing real estate and distributes most income as dividends.
TTM: The 12-month period ending with the most recent quarterly report.

Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Equinix. The Motley Fool recommends EastGroup Properties and Sun Communities. The Motley Fool has a disclosure policy.