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Vornado Realty Trust (VNO)
:VNO
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Vornado Realty
(NYSE:VNO)
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Rating:57Neutral
Price Target:
$39.00
▲(17.86% Upside)
Vornado Realty's overall score reflects a mix of strong profitability and positive earnings call sentiment, offset by high leverage, negative cash flow trends, and bearish technical indicators. The stock appears undervalued, but liquidity and leverage issues need addressing for sustained growth.
Positive Factors
Leasing Activity
Strong leasing activity in Manhattan indicates robust demand for Vornado's properties, enhancing revenue stability and market position.
Balance Sheet Improvement
Improved debt metrics and liquidity enhance financial flexibility, supporting long-term operational and strategic initiatives.
PENN District Progress
Progress in the PENN District boosts occupancy rates, contributing to future revenue growth and enhancing asset value.
Negative Factors
High Leverage
High leverage poses risks to financial stability, potentially limiting the company's ability to invest in growth opportunities.
Negative Cash Flow Trends
Persistent negative cash flows can strain liquidity, affecting the company's ability to sustain operations and fund projects.
Retail Sector Challenges
Challenges in the retail sector, including asset impairments, may hinder profitability and necessitate strategic adjustments.
Vornado Realty (VNO) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$7.19B
Dividend Yield2.15%
Average Volume (3M)1.39M
Price to Earnings (P/E)8.2
Beta (1Y)1.26
Revenue Growth2.41%
EPS GrowthN/A
CountryUS
Employees2,996
SectorReal Estate
Sector Strength53
IndustryREIT - Office
Share Statistics
EPS (TTM)0.06
Shares Outstanding192,054,820
10 Day Avg. Volume1,950,561
30 Day Avg. Volume1,394,784
Financial Highlights & Ratios
PEG Ratio-1.40
Price to Book (P/B)1.55
Price to Sales (P/S)4.48
P/FCF Ratio14.90
Enterprise Value/Market Cap2.36
Enterprise Value/Revenue9.37
Enterprise Value/Gross Profit10.82
Enterprise Value/Ebitda10.02
Forecast
1Y Price Target
$40.10Price Target Upside21.18% Upside
Rating ConsensusHold
Number of Analyst Covering11
EPS Forecast (FY)4.1
Revenue Forecast (FY)$1.83B
Vornado Realty Business Overview & Revenue Model
Company DescriptionVornado'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.
How the Company Makes MoneyVornado Realty generates revenue primarily through leasing its commercial and residential properties to tenants, which provides a steady stream of rental income. The company also earns money through property management and development activities, including renovation and construction projects that enhance property value. Additionally, Vornado may engage in strategic partnerships and joint ventures to maximize returns on its investments. The firm benefits from long-term leases, which provide predictable cash flows, and its focus on prime locations attracts high-profile tenants, contributing to its overall financial performance.
Vornado Realty Earnings Call Summary
Earnings Call Date:Nov 03, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Feb 16, 2026
Earnings Call Sentiment Neutral
The earnings call emphasized strong leasing activity, especially in Manhattan, and significant progress in the PENN District, which are seen as major positive developments. However, challenges in retail and flat FFO growth expectations for 2026, along with litigation uncertainties, present notable concerns.Q3-2025 Updates
Positive Updates
Strong Leasing Activity in Manhattan
Vornado leased 3.7 million square feet in the first 9 months of 2025, with 2.8 million square feet in Manhattan office, achieving the highest average starting rents in the city at $103 per square foot. Mark-to-markets were up 15.7% GAAP and 10.4% cash.
PENN District Progress
PENN 2 is at 78% occupancy with expectations to exceed 80% by year-end. Over 1.3 million square feet have been leased since project inception. The projected incremental cash yield is set to increase from 10.2% at year-end.
Improved Balance Sheet
Net debt-to-EBITDA ratio improved to 7.3x from 8.6x at the start of the year, and immediate liquidity stands at $2.6 billion. Cash balances increased by $500 million, and $900 million in debt was paid down.
Record Signage Revenue
Signage revenue for 2025 is projected to be the highest ever, driven by ownership of all signs in the PENN District and strategic advantages in Times Square.
Negative Updates
Challenges in Retail Sector
The retail apocalypse and pandemic led to asset impairment at 650 Madison Avenue, resulting in a total write-off of the asset to zero.
Flat FFO Growth Expected in 2026
2026 comparable FFO is expected to be flattish compared to 2025 due to noncore asset sales and income offline for retail redevelopment, with significant earnings growth anticipated in 2027.
Litigation and Uncertainty
A recent court ruling vacated the arbitration panel's rent reset for a ground lease, introducing uncertainty into previously known figures.
Company Guidance
During the Vornado Realty Trust Third Quarter 2025 Earnings Call, management provided detailed guidance and metrics highlighting the company's strong performance and optimistic outlook. The company's net debt-to-EBITDA ratio improved to 7.3x, and immediate liquidity was reported at $2.6 billion. Vornado's Manhattan office leasing volume is expected to be the highest in over a decade, with 3.7 million square feet leased in the first nine months of 2025. The average starting rents in Manhattan office were $99 per square foot, excluding a significant lease with NYU. The company reported a robust third-quarter performance, with comparable FFO at $0.57 per share, up from $0.52 per share the previous year. Office occupancy increased to 88.4%, primarily due to leasing at PENN 2, which is on track to exceed 80% occupancy by year-end. The company also highlighted its strategic acquisition of 623 Fifth Avenue and anticipates a 9% yield on cost for the project. Management projected that 2027 would be an inflection year with significant earnings growth due to the lease-up of PENN 1 and PENN 2 and the impact of ongoing development projects.Vornado Realty Financial Statement Overview
Summary
Vornado Realty shows strong profitability improvements in its income statement, with a high net profit margin. However, the balance sheet's high leverage and negative cash flow trends pose significant risks. Operational efficiency has improved, but liquidity and leverage issues need addressing for long-term stability.Income Statement
Vornado Realty's income statement shows a strong improvement in profitability with a TTM net profit margin of 49.05%, significantly higher than previous years. The gross profit margin has also improved to 55.05% TTM. However, revenue growth has been inconsistent, with a notable decline in 2024. The EBIT and EBITDA margins have shown substantial improvement in the TTM period, indicating better operational efficiency.65
Positive
Balance Sheet
The balance sheet reflects a high debt-to-equity ratio, peaking at 1.74 in 2024, which poses a risk. However, the TTM period shows a reduction in total debt, improving the debt-to-equity ratio to a more manageable level. Return on equity has improved significantly in the TTM period to 15.73%, indicating better returns for shareholders.55
Neutral
Cash Flow
Cash flow analysis reveals a concerning trend with negative operating and free cash flows in the TTM period, indicating potential liquidity issues. The free cash flow to net income ratio remains stable at 1.0, but the negative free cash flow growth rate in recent periods highlights cash management challenges.40
Negative
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.81B | 1.79B | 1.81B | 1.80B | 1.59B | 1.53B |
| Gross Profit | 1.57B | 1.79B | 906.00M | 926.08M | 791.89M | 738.88M |
| EBITDA | 1.70B | 880.61M | 845.61M | 423.31M | 840.50M | 203.52M |
| Net Income | 905.56M | 70.39M | 105.49M | -346.50M | 176.00M | -297.00M |
Balance Sheet | ||||||
| Total Assets | 15.75B | 16.00B | 16.19B | 16.49B | 17.27B | 16.22B |
| Cash, Cash Equivalents and Short-Term Investments | 1.01B | 733.95M | 997.00M | 1.36B | 1.76B | 1.62B |
| Total Debt | 7.92B | 8.99B | 8.98B | 9.13B | 8.99B | 7.80B |
| Total Liabilities | 8.73B | 9.83B | 9.84B | 9.98B | 10.06B | 8.67B |
| Stockholders Equity | 6.07B | 5.16B | 5.51B | 5.84B | 6.24B | 6.53B |
Cash Flow | ||||||
| Free Cash Flow | -872.77M | 537.72M | 648.15M | 795.94M | 761.81M | 29.19M |
| Operating Cash Flow | -872.77M | 537.72M | 648.15M | 798.94M | 761.81M | 424.24M |
| Investing Cash Flow | 55.53M | -597.37M | -128.79M | -906.86M | -532.35M | -87.80M |
| Financing Cash Flow | -1.29B | -252.32M | -278.94M | -801.27M | -29.48M | -213.20M |
Vornado Realty Technical Analysis
Negative
33.09
Price Trends
39.21
Negative
38.71
Negative
38.52
Negative
Market Momentum
-1.37
Positive
26.81
Positive
14.80
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For VNO, the sentiment is Negative. The current price of 33.09 is below the 20-day moving average (MA) of 37.06, below the 50-day MA of 39.21, and below the 200-day MA of 38.52, indicating a bearish trend. The MACD of -1.37 indicates Positive momentum. The RSI at 26.81 is Positive, neither overbought nor oversold. The STOCH value of 14.80 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for VNO.
Vornado Realty Risk Analysis
Vornado Realty disclosed 42 risk factors in its most recent earnings report. Vornado Realty reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Vornado Realty Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | $4.88B | 15.07 | 5.94% | 5.35% | 0.77% | 62.58% | |
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
65 Neutral | $3.20B | 25.27 | 5.37% | 7.19% | -2.10% | -13.30% | |
63 Neutral | $4.35B | 74.68 | 1.26% | 5.10% | 16.38% | 3.60% | |
61 Neutral | $12.30B | ― | -3.74% | 5.27% | 2.54% | -155.17% | |
57 Neutral | $7.19B | 8.21 | 15.97% | 2.15% | 2.41% | ― | |
51 Neutral | $3.64B | ― | 0.61% | 6.90% | 8.60% | ― |
* Real Estate Sector Average
VNO
Vornado Realty
33.09
-6.54
-16.50%
BXP
BXP
69.11
-5.36
-7.20%
CUZ
Cousins Properties
25.11
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-14.88%
HIW
Highwoods Properties
27.80
-2.03
-6.81%
KRC
Kilroy Realty
40.40
4.12
11.36%
SLG
SL Green Realty
44.67
-27.85
-38.40%
Vornado Realty Corporate Events
Vornado Realty Trust Reports Strong Q3 2025 Earnings
Nov 5, 2025
Vornado Realty Trust is a prominent real estate investment trust (REIT) specializing in office and retail properties, primarily located in New York City. The company is known for its strategic investments and developments in prime urban locations.
Vornado Realty Trust’s Earnings Call: Leasing Gains Amid Retail Challenges
Nov 5, 2025
During Vornado Realty Trust’s latest earnings call, the sentiment was cautiously optimistic. The company highlighted strong leasing activity, particularly in Manhattan, and significant progress in the PENN District as positive developments. However, concerns were raised about challenges in the retail sector and flat FFO growth expectations for 2026, alongside uncertainties stemming from litigation issues.
Vornado Realty Trust Reports Strong Q2 2025 Earnings
Aug 6, 2025
Vornado Realty Trust is a fully integrated equity real estate investment trust primarily engaged in the ownership and management of commercial real estate, with a significant presence in New York City. The company is known for its extensive portfolio of office and retail properties in prime locations.
Vornado Realty Trust’s Earnings Call Highlights Robust Growth
Aug 6, 2025
Vornado Realty Trust’s recent earnings call paints a picture of robust financial health and strategic growth, particularly in the Penn District, despite facing some challenges. The sentiment expressed during the call was largely positive, highlighting strong leasing activity and financial performance that overshadowed concerns about retail occupancy and litigation risks.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.