John Kim, an analyst from BMO Capital, reiterated the Buy rating on Vornado Realty (VNO – Research Report). The associated price target remains the same with $46.00.
John Kim has given his Buy rating due to a combination of factors, including a favorable adjustment in Vornado Realty’s ground lease terms at PENN 1. The new annual lease payment of $15 million is significantly lower than the previously anticipated $26 million, resulting in substantial savings for the company. This unexpected outcome positively impacts Vornado’s financial outlook, contributing to an increase in the estimated Funds From Operations per share (FFOps) for 2025-26.
Additionally, John Kim notes that Vornado’s core FFOps growth is occurring earlier than expected, with occupancy gains driving this growth beyond the current year. The favorable lease reset and the resulting financial benefits reinforce the Outperform rating and support a target price of $46. These elements collectively underpin the Buy recommendation, highlighting the company’s improved financial position and growth prospects.
Kim covers the Real Estate sector, focusing on stocks such as Eastgroup Properties, Equity Lifestyle, and Vornado Realty. According to TipRanks, Kim has an average return of 0.0% and a 46.41% success rate on recommended stocks.