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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.

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1.b. Last Insights on VNO

Vornado Realty Trust faced challenges in recent quarters due to intense competition in office markets, which pressured growth despite demand recovery. The company's Q4 2025 earnings revealed a decline in FFO per share by 2 cents year-over-year to $0.56, accompanied by a revenue beat. Additionally, some institutional investors, such as Friedenthal Financial and Baron Real Estate Fund, have reduced or exited their positions in the company. Centersquare Investment Management LLC, however, increased its holdings by 1.4%. The company's credit ratings remain stable, with Moody's Ba1, Fitch BB+, and S&P BBB-.

1.c. Company Highlights

2. Vornado Realty Trust's Strong Manhattan Office Market Presence Drives Earnings

Vornado Realty Trust reported a comparable FFO of $0.55 per share for the fourth quarter, slightly below estimates of $0.57. The company's full-year 2025 comparable FFO was $2.32 per share, marginally higher than 2024. Same-store GAAP NOI rose 5% for the quarter, while same-store cash NOI declined 8.3% due to free rent and other factors. The company's earnings were driven by a strong Manhattan office market, with 3.7 million square feet leased at an average starting rent of $98 per square foot.

Publication Date: Feb -15

📋 Highlights
  • Manhattan Office Leasing Success:: 3.7M sq ft leased in Manhattan 2025 at $98/sq ft avg starting rent, driving 91.2% occupancy.
  • Portfolio Performance:: 5% Q4 same-store GAAP NOI growth, $2.39B liquidity, and net debt/EBITDA improved to 7.7x from 8.6x.
  • Development Momentum:: 350 Park Avenue ($1,200/sq ft cost) to add $0.11/FFO, alongside $218M acquisition of 623 5th Ave at $569/sq ft.
  • Leasing Pipeline Growth:: Near-1M sq ft in negotiation, with 50% new tenants; Penn District at 80% occupancy and 11.6% incremental cash yield.
  • Future Earnings Outlook:: 2027 expected significant growth from rent increases and lease-ups; 2026 FFO to remain flat with 2025, impacted by 350 Park Avenue transition.

Operational Highlights

The company's office occupancy increased to 91.2% from 88.8% in 2025, driven by significant leasing activity in the Penn District. Vornado's development program is progressing, with construction set to begin on 350 Park Avenue in April. The company acquired two high-potential development assets, including 623 5th Avenue, for $218 million. The Penn District transformation is driving results, with 908,000 square feet leased at Penn Two in 2025 at an average rent of $109 per square foot.

Financial Performance and Guidance

Vornado expects 2026 comparable FFO to be in line with 2025, with significant earnings growth anticipated in 2027. The company's liquidity is $2.39 billion, comprised of cash balances and credit lines. The company has refinanced nearly $3.5 billion of debt, taking advantage of strong financing markets for New York office assets. The net debt to EBITDA metric improved to 7.7 times from 8.6 times at the start of the year.

Valuation and Growth Prospects

With a P/E Ratio of 6.33 and an EV/EBITDA of 18.64, the market appears to be pricing in moderate growth prospects for Vornado Realty Trust. Analysts estimate next year's revenue growth at 5.4%. The company's strong balance sheet and growth initiatives, including the development of 350 Park Avenue, are expected to drive future earnings. As Steven Roth mentioned, the company is experiencing a significant increase in activity, "palpably double" what it was a year ago, which should support future growth.

Dividend and Share Buyback

The company's dividend is currently reduced due to the pandemic and is expected to be restored to a normalized level once taxable income and internal cash flows support it. Vornado has bought back 4.4 million shares for $109 million at an average price of $25 per share, demonstrating its commitment to returning value to shareholders.

3. NewsRoom

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Baron Real Estate Fund Q4 2025 Portfolio Activity

Mar -01

Source: seekingalpha.com

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Comparing Rexford Industrial Realty (NYSE:REXR) & Alexander’s (NYSE:ALX)

Mar -01

Source: defenseworld.net

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Centersquare Investment Management LLC Grows Position in Vornado Realty Trust $VNO

Feb -26

Source: defenseworld.net

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Baron Real Estate Income Fund Q4 2025 Portfolio Activity

Feb -25

Source: seekingalpha.com

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Vornado Realty Trust Could Soar If These 2 Things Go Right

Feb -19

Source: fool.com

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Alexander’s (NYSE:ALX) versus Innovative Industrial Properties (NYSE:IIPR) Critical Comparison

Feb -19

Source: defenseworld.net

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Vornado Realty Dips As Manhattan Office Leasing Moves Up

Feb -13

Source: seekingalpha.com

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Vornado Realty: Reviewing The 7%+ Preferreds After The Latest Earnings

Feb -12

Source: seekingalpha.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
Boston Properties

A-Score: 5.4/10

Value: 5.7

Growth: 3.2

Quality: 4.1

Yield: 8.0

Momentum: 4.0

Volatility: 7.3

1-Year Total Return ->

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Stock-Card
Cousins Properties

A-Score: 5.3/10

Value: 4.9

Growth: 2.7

Quality: 4.2

Yield: 8.0

Momentum: 3.5

Volatility: 8.7

1-Year Total Return ->

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Stock-Card
Alexandria Real Estate Equities

A-Score: 5.3/10

Value: 7.3

Growth: 4.6

Quality: 4.7

Yield: 9.0

Momentum: 0.5

Volatility: 5.7

1-Year Total Return ->

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Stock-Card
Vornado Realty

A-Score: 5.2/10

Value: 7.4

Growth: 2.2

Quality: 6.6

Yield: 6.0

Momentum: 3.5

Volatility: 5.3

1-Year Total Return ->

View Full Report
Stock-Card
Douglas Emmett

A-Score: 4.9/10

Value: 4.7

Growth: 4.6

Quality: 3.3

Yield: 9.0

Momentum: 1.5

Volatility: 6.3

1-Year Total Return ->

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Stock-Card
SL Green Realty

A-Score: 3.9/10

Value: 2.5

Growth: 0.9

Quality: 3.8

Yield: 9.0

Momentum: 2.0

Volatility: 5.3

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

26.99$

Current Price

26.99$

Potential

-0.00%

Expected Cash-Flows