SL Green Realty Corp: Thank you Sinatra

On July 13th I wrote SL Green Realty Corp.'s 30% Fall Since June, Bank on Sinatra? when SL Green Realty Corp. (NYSE:SLG) shares had fallen close to 30% since June and trading around $19 a share.  Pointing out that REITs had lost their luster, but what makes SL Green so compelling is its assets in New York, and they have some of the most valuable properties in the world a la midtown Manhattan.  Checking back in on SLG today shares are at $28.83 a cool 54% increase in 16 trading days.

Frank Sinatra once said  “The best revenge is massive success.” SLG and other REITs have since mid July jumped on improved new-homes sales in June, increasing 11% in June along with existing-home sales rising 3.6%.

As I said last month:

Fellow Masters, why I even bring SLG to your attention is that just like Frank, being early to the party with cocktail in hand is the way to taste sweet success.

Masters, read Bloomberg's article SL Green Chief Sees Manhattan Office Market Recovery (Update1) for
the full picture, but the point I am trying to make here is that SLG will be first to the party when the recovery hits and its share price is going right back up with it, thanks to the Big Apple.

On July 29th SL Green Realty, New York's largest commercial landlord, said  it had an occupancy rate of 96.2 percent for the second quarter. CEO Marc Holliday said he thinks the Manhattan office market could bottom out in 2010. SL Green's occupancy rate will likely fall to 95 percent by the end of this year and to 94 percent in 2010, Holliday said. The company's shares ended up 3.2 percent yesterday.

Turns out, that was also the bottom for the stock, congrats to all who placed the bet and thank you for reading.

Disclaimer: No positions in SLG.