Download PDF

1. Company Snapshot

1.a. Company Description

Vornado's portfolio is concentrated in the nation's key market — New York City — along with the premier asset in both Chicago and San Francisco.Vornado is also the real estate industry leader in sustainability policy.The company owns and manages over 23 million square feet of LEED certified buildings and received the Energy Star Partner of the Year Award, Sustained Excellence 2019.


In 2012, Vornado commemorated 50 years on the NYSE.

Show Full description

1.b. Last Insights on VNO

Vornado Realty Trust's recent performance was driven by strong leasing momentum, refinancing moves, and portfolio shifts, boosting investor confidence. The company's Q2 earnings beat estimates, with a 1,955% jump in net income, driven by a $803 million gain related to the 770 Broadway master lease with New York University. Additionally, Vornado's same-store NOI rose year-over-year, aided by higher leasing activity. The company's JV sale of 512 West 22nd Street property for $205 million and refinancing of 4 Union Square South for $120 million also contributed to its positive performance.

1.c. Company Highlights

2. Vornado Realty Trust's Strong Q3 Earnings Reflects Growing Momentum in NYC Office Market

Vornado Realty Trust reported a strong third quarter with comparable FFO of $0.57 per share, beating analyst estimates of $0.55 per share. The company's New York business saw a 9.1% increase in same-store GAAP NOI, driven by successful leasing activity, with 3.7 million square feet leased in the first nine months of 2025. The average starting rent for Manhattan office space was $99 per square foot, with a 15.7% GAAP and 10.4% cash mark-to-market.

Publication Date: Nov -10

📋 Highlights
  • Strong Leasing Momentum: 3.7 million sq ft leased YTD 2025 in NYC, with $99/sq ft avg starting rent and 15.7% GAAP mark-to-market.
  • Balance Sheet Strength: $1.15B in cash and $2.6B total liquidity, reducing net debt/EBITDA to 7.3x from 8.6x since year start.
  • Redevelopment Focus: $218M acquisition of 623 Fifth Avenue (75% vacant) with $600/sq ft investment targeting 9-10% yield on cost.
  • PENN District Success: 325K sq ft leased at $112/sq ft in PENN 2, 80% occupancy target by year-end, and 50-50 leasing pipeline split with other properties.
  • Rent Growth Projections: 20-25% cumulative net effective rent growth expected over 4-5 years, driven by high demand elasticity and landlord-friendly market conditions.

Leasing Activity and Rental Growth

The company's PENN District has seen significant leasing activity, with 325,000 square feet leased at an average starting rent of $112 per foot. According to Glen Weiss, "rents have increased significantly, with the average rent now at $112 per square foot, and only 20% of the building remains unleased." The leasing pipeline is expected to exceed 80% by year-end, with a 50-50 split between PENN 2 and other properties.

Balance Sheet Management

Vornado has made significant progress in managing its balance sheet, with a debt ratio decreasing to 7.3x from 8.6x at the start of the year. The company has generated $1.5 billion in net proceeds from sales, financings, and the NYU deal, and paid down $900 million in debt. Cash balances are now $1.15 billion, with undrawn credit facilities providing a total liquidity of $2.6 billion.

Valuation and Growth Prospects

With a P/E Ratio of 7.89 and an EV/EBITDA of 8.11, Vornado's valuation appears reasonable. Analysts estimate next year's revenue growth at 2.9%. Michael Franco stated that they expect occupancy to reach 90% in the next quarter or two and then continue to build occupancy to historical levels. The company's ROE is 16.01%, and ROIC is 17.7%, indicating efficient capital allocation.

Development Projects and Future Plans

Vornado is planning to redevelop 623 Fifth Avenue, a 75% vacant building acquired for $218 million, with an expected yield on cost of 9%. The company is also developing a 475-unit rental project at 34th Street and 8th Avenue. Steven Roth mentioned that they will approach the leasing of 623 Fifth Avenue similarly to 220 Central Park South, with a focus on creating high-end boutique office space.

3. NewsRoom

Card image cap

Vornado Realty Trust $VNO Shares Acquired by American Century Companies Inc.

Dec -03

Source: defenseworld.net

Card image cap

Vornado Realty Trust: 7.5% From The Preferred Stocks Is Tempting

Nov -08

Source: seekingalpha.com

Card image cap

Vornado Realty: Manhattan Office Space Becomes A Hot Commodity

Nov -07

Source: seekingalpha.com

Card image cap

Analyzing CTO Realty Growth (NYSE:CTO) & Vornado Realty Trust (NYSE:VNO)

Nov -05

Source: defenseworld.net

Card image cap

Vornado Realty Trust (VNO) Q3 2025 Earnings Call Transcript

Nov -04

Source: seekingalpha.com

Card image cap

Vornado's Q3 FFO & Revenues Beat Estimates, Occupancy Improves

Nov -04

Source: zacks.com

Card image cap

Vornado (VNO) Q3 FFO and Revenues Beat Estimates

Nov -04

Source: zacks.com

Card image cap

Vornado Announces Third Quarter 2025 Financial Results

Nov -03

Source: globenewswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (1.12%)

6. Segments

New York

Expected Growth: 1.2%

Vornado Realty Trust's 1.2% growth in New York is driven by increasing demand for office and retail spaces, fueled by the city's thriving economy, growing tech industry, and tourism sector. Additionally, the company's strategic focus on redeveloping and repositioning its properties, as well as its strong balance sheet, contribute to its growth momentum.

Other

Expected Growth: 0.8%

Vornado Realty Trust's 0.8 growth is driven by increasing demand for office spaces in New York City, strategic asset acquisitions, and effective cost management. Additionally, the company's diversified portfolio and strong balance sheet provide a solid foundation for growth.

7. Detailed Products

Office Properties

Vornado Realty Trust owns and operates a portfolio of high-quality office properties in New York City, including iconic buildings such as One Penn Plaza and 555 California Street.

Retail Properties

Vornado's retail portfolio includes prominent properties such as the Marriott Marquis Times Square and 1530 Broadway, offering prime retail space in high-traffic areas.

Industrial Properties

Vornado's industrial portfolio comprises modern logistics and distribution facilities, serving the needs of e-commerce and last-mile delivery companies.

Hotel Properties

Vornado owns and operates a select portfolio of luxury hotels, including the iconic Hotel Pennsylvania in New York City.

Land Development

Vornado's land development arm focuses on redeveloping underutilized properties into vibrant, mixed-use projects, such as the redevelopment of the James A. Farley Post Office in New York City.

8. Vornado Realty Trust's Porter Forces

Forces Ranking

Threat Of Substitutes

Vornado Realty Trust operates in a highly competitive industry, and there are many substitutes available to customers. However, the company's strong brand recognition and high-quality properties help to mitigate the threat of substitutes.

Bargaining Power Of Customers

Vornado Realty Trust's customers have limited bargaining power due to the company's strong market position and limited alternatives.

Bargaining Power Of Suppliers

Vornado Realty Trust's suppliers have some bargaining power due to the company's reliance on them for materials and services. However, the company's large scale and diversified supplier base help to mitigate this threat.

Threat Of New Entrants

The threat of new entrants is low due to the high barriers to entry in the real estate industry, including high capital requirements and regulatory hurdles.

Intensity Of Rivalry

The real estate industry is highly competitive, and Vornado Realty Trust faces intense rivalry from other companies. The company must continually innovate and improve its offerings to stay ahead of the competition.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 61.99%
Debt Cost 6.85%
Equity Weight 38.01%
Equity Cost 11.68%
WACC 8.69%
Leverage 163.08%

11. Quality Control: Vornado Realty Trust passed 2 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Alexandria Real Estate Equities

A-Score: 5.8/10

Value: 7.9

Growth: 4.4

Quality: 6.1

Yield: 9.0

Momentum: 1.5

Volatility: 6.0

1-Year Total Return ->

View Full Report
Stock-Card
Vornado Realty

A-Score: 5.2/10

Value: 5.4

Growth: 2.2

Quality: 6.6

Yield: 6.0

Momentum: 5.5

Volatility: 5.7

1-Year Total Return ->

View Full Report
Stock-Card
Cousins Properties

A-Score: 5.2/10

Value: 3.6

Growth: 2.8

Quality: 4.2

Yield: 8.0

Momentum: 4.0

Volatility: 8.7

1-Year Total Return ->

View Full Report
Stock-Card
Douglas Emmett

A-Score: 4.9/10

Value: 4.3

Growth: 4.6

Quality: 3.7

Yield: 8.0

Momentum: 3.0

Volatility: 6.0

1-Year Total Return ->

View Full Report
Stock-Card
Boston Properties

A-Score: 4.8/10

Value: 3.3

Growth: 3.1

Quality: 3.8

Yield: 8.0

Momentum: 4.0

Volatility: 6.7

1-Year Total Return ->

View Full Report
Stock-Card
SL Green Realty

A-Score: 4.1/10

Value: 2.1

Growth: 0.9

Quality: 3.5

Yield: 9.0

Momentum: 3.5

Volatility: 5.3

1-Year Total Return ->

View Full Report

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

34.82$

Current Price

34.82$

Potential

-0.00%

Expected Cash-Flows