Citi upgrades New York-based office REITs SL Green Realty, Vornado Realty Trust

SL Green Realty (NYSE:SLG) was trading higher as Citi Research upgraded the office REIT on the strength of the New York office market and improving NY office transaction environment.

Shares were +2.64% Thursday post-market to $65.00.

"In addition, the recent underperformance driven by headline risks associated with the NYC mayoral race provide an opportunity in our view," said analysts Seth Bergey and Nick Joseph in a research note.

"These catalysts are balanced by the risk that the New York office market slows, particularly given political headwinds around the mayoral election, and elevated relative valuation vs. office peers," added the note.

Another New York-based office REIT Vornado Realty Trust (NYSE:VNO) was upgraded to Neutral from Sell.

VNO was +1.14% to $42.49.

The rating on SLG aligns with the average Seeking Alpha authors rating of Buy. Meanwhile, the sell-side analysts as well as the Quant Rating system see the stock as Hold.

VNO is also rated as Buy by SA contributors and Hold by Quant and Wall Street analysts.