Vornado Realty (VNO)
NYSE:VNO
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Vornado Realty
(NYSE:VNO)
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Rating:56Neutral
Price Target:
$28.00
▲(3.09% Upside)
Action:ReiteratedDate:04/09/26
The score is anchored by mixed financial fundamentals: improving profitability/cash generation but pressured by revenue decline and a leveraged balance sheet. Earnings-call commentary adds support via strong leasing/occupancy momentum and improved liquidity, while technicals remain a headwind given the downtrend versus key moving averages. Valuation is a relative positive with a low P/E and moderate yield.
Positive Factors
High leasing volume & long-term rents
Sustained, high-volume leasing with above-market starting rents and lengthy average terms materially improves cash flow visibility and reduces vacancy risk. Large, multi-year leases lock in rents, support future NOI, and underpin the multi-year ramp from Penn District lease-ups into 2027 and beyond.
Negative Factors
Sharp revenue decline
A steep revenue decline erodes the top-line base that funds NOI and FFO, raising the bar for development and repositioning to offset lost rental income. Persistently lower revenue increases sensitivity to lease renewals and tenant mix, making sustained margin recovery and stable cash generation more challenging.
Read all positive and negative factors
Positive Factors
Negative Factors
High leasing volume & long-term rents
Sustained, high-volume leasing with above-market starting rents and lengthy average terms materially improves cash flow visibility and reduces vacancy risk. Large, multi-year leases lock in rents, support future NOI, and underpin the multi-year ramp from Penn District lease-ups into 2027 and beyond.
Read all positive factors
Vornado Realty (VNO) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$5.55B
Dividend Yield2.24%
Average Volume (3M)2.32M
Price to Earnings (P/E)7.1
Beta (1Y)1.26
Revenue Growth2.41%
EPS GrowthN/A
CountryUS
Employees2,996
SectorReal Estate
Sector Strength53
IndustryREIT - Office
Share Statistics
EPS (TTM)0.00
Shares Outstanding190,666,370
10 Day Avg. Volume1,824,145
30 Day Avg. Volume2,317,251
Financial Highlights & Ratios
PEG Ratio<0.01
Price to Book (P/B)1.07
Price to Sales (P/S)3.52
P/FCF Ratio5.07
Enterprise Value/Market Cap2.20
Enterprise Value/Revenue6.75
Enterprise Value/Gross Profit6.75
Enterprise Value/Ebitda6.92
Forecast
1Y Price Target
$34.83Price Target Upside28.24% Upside
Rating ConsensusHold
Number of Analyst Covering12
EPS Forecast (FY)0.05
Revenue Forecast (FY)$1.90B
Vornado Realty Business Overview & Revenue Model
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 ove...
How the Company Makes Money
Vornado primarily makes money by generating recurring rental revenue from its commercial real estate portfolio. Its core revenue stream is base rent and other rent-related income earned under lease agreements with office and retail tenants; these ...
Vornado Realty Earnings Call Summary
Earnings Call Date:Feb 09, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 04, 2026
Earnings Call Sentiment Positive
The call emphasized pronounced operational momentum in Manhattan: robust leasing (4.6M sq ft in 2025), rising market rents and strong penn district lease-up progress, improved occupancy (91.2%), higher GAAP NOI (+5% quarter) and significantly strengthened liquidity and maturities. Offsetting items include a Q4 FFO dip due to higher interest expense, same-store cash NOI down 8.3% driven by free rent, near-term flat FFO guidance for 2026 (with growth expected in 2027), and timing uncertainty on GAAP recognition of signed rents (~$200M). Management presented a constructive and confident tone on fundamentals, active capital allocation (select buybacks, refinancings, development), and improving leverage metrics. Overall, positives appear to meaningfully outweigh the near-term, largely timing-related negatives.Positive Updates
Strong Leasing Volume in 2025
Leased 4,600,000 square feet in 2025 (3,700,000 in Manhattan, 146,000 in San Francisco, 394,000 in Chicago). Highest Manhattan leasing in over a decade and second-highest year on record. Excluding a 1,100,000 sq ft NYU master lease, Manhattan average starting rent was $98/sf with an average lease term of over 11 years.
Negative Updates
Quarterly Comparable FFO Decline
Fourth quarter comparable FFO was $0.55 per share versus $0.61 in Q4 2024 (≈ -9.8%). The decrease was primarily due to higher net interest expense and the absence of prior-year lease termination income (330 West 34th) that benefited the prior quarter.
Read all updates
Q4-2025 Updates
Positive
Negative
Strong Leasing Volume in 2025
Leased 4,600,000 square feet in 2025 (3,700,000 in Manhattan, 146,000 in San Francisco, 394,000 in Chicago). Highest Manhattan leasing in over a decade and second-highest year on record. Excluding a 1,100,000 sq ft NYU master lease, Manhattan average starting rent was $98/sf with an average lease term of over 11 years.
Read all positive updates
Company Guidance
Management guided that 2026 comparable FFO should be roughly in line with 2025 (2025 comparable FFO = $2.32/share; Q4 ’25 comparable FFO = $0.55 vs $0.61 LY), with Q1 2026 more pressured by GAAP rent ramp, higher interest (including a $500M 7‑yr bond at 5.75%) and signage seasonality, and significant earnings growth expected in 2027 as PENN1/PENN2 lease‑ups ramp. Key metrics behind that outlook: 2025 leasing of 4.6M sq ft (3.7M Manhattan), Q4 NY deals = 25 deals / 960k sq ft at $95/sf avg (Q4 mark‑to‑markets +8.1% GAAP / +7.2% cash; avg term 10 yrs), Manhattan avg starting rent (ex‑NYU) $98/sf with mark‑to‑markets +10.4% GAAP / +7.8% cash and avg lease term >11 yrs; PENN2 now ~80% leased (1.4M+ sq ft) with 2025 PENN2 leasing 908k sq ft at $109/sf avg and projected incremental cash yield raised from 10.2% to 11.6%. They cautioned modelers not to assume more than a $0.40 uptick in 2027, noted >$200M of signed but not‑GAAP‑recognized rent to be recognized over the next few years, reported liquidity of $2,390M (cash $978M + $1,410M credit lines), nearly $3.5B of maturities extended (many to 02/2031), net debt/EBITDA improved to 7.7x from 8.6x, and confirmed ongoing share buybacks (total 4.376M shares for $109M since 2023; recent 2.352M shares for $80M at ~$34).Vornado Realty Financial Statement Overview
Summary
Income Statement
53
Neutral
Balance Sheet
41
Neutral
Cash Flow
62
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 1.81B | 1.79B | 1.81B | 1.80B | 1.59B |
| Gross Profit | 1.81B | 1.79B | 906.00M | 926.08M | 791.89M |
| EBITDA | 1.77B | 880.61M | 845.61M | 423.31M | 840.50M |
| Net Income | 904.96M | 70.39M | 105.49M | -346.50M | 176.00M |
Balance Sheet | |||||
| Total Assets | 15.52B | 16.00B | 16.19B | 16.49B | 17.27B |
| Cash, Cash Equivalents and Short-Term Investments | 840.85M | 733.95M | 997.00M | 1.36B | 1.76B |
| Total Debt | 7.89B | 8.99B | 8.98B | 9.13B | 8.99B |
| Total Liabilities | 8.72B | 9.83B | 9.84B | 9.98B | 10.06B |
| Stockholders Equity | 5.99B | 5.16B | 5.51B | 5.84B | 6.24B |
Cash Flow | |||||
| Free Cash Flow | 1.26B | 537.72M | 648.15M | 798.94M | 761.81M |
| Operating Cash Flow | 1.26B | 537.72M | 648.15M | 798.94M | 761.81M |
| Investing Cash Flow | 115.51M | -597.37M | -128.79M | -906.86M | -532.35M |
| Financing Cash Flow | -1.35B | -252.32M | -278.94M | -801.27M | -29.48M |
Vornado Realty Technical Analysis
Negative
27.16
Price Trends
27.83
Negative
30.78
Negative
34.35
Negative
Market Momentum
-0.34
Negative
54.04
Neutral
81.35
Negative
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 27.16 is above the 20-day moving average (MA) of 25.95, below the 50-day MA of 27.83, and below the 200-day MA of 34.35, indicating a neutral trend. The MACD of -0.34 indicates Negative momentum. The RSI at 54.04 is Neutral, neither overbought nor oversold. The STOCH value of 81.35 is Negative, 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 |
|---|---|---|---|---|---|---|---|
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
57 Neutral | $3.38B | 89.50 | 5.11% | 5.75% | 0.77% | 62.58% | |
56 Neutral | $5.55B | 7.05 | 15.43% | 2.24% | 2.41% | ― | |
56 Neutral | $2.46B | 24.27 | 6.69% | 7.83% | -2.10% | -13.30% | |
54 Neutral | $3.84B | 106.88 | 0.85% | 5.08% | 16.38% | 3.60% | |
51 Neutral | $2.86B | -38.62 | -2.25% | 6.95% | 8.60% | ― | |
50 Neutral | $9.23B | 38.78 | 5.34% | 5.26% | 2.54% | -155.17% |
* Real Estate Sector Average
VNO
Vornado Realty
27.16
-6.38
-19.02%
BXP
BXP
53.00
-6.93
-11.56%
CUZ
Cousins Properties
22.88
-2.30
-9.14%
HIW
Highwoods Properties
22.42
-2.82
-11.19%
KRC
Kilroy Realty
28.22
-0.86
-2.96%
SLG
SL Green Realty
38.42
-10.34
-21.21%
Vornado Realty Corporate Events
Business Operations and Strategy
Vornado Realty Releases 2025 Sustainability Report Highlighting Progress
Positive
Apr 8, 2026
On April 8, 2026, Vornado Realty Trust announced the release of its 2025 Sustainability Report, marking the 17th consecutive year the company has published such disclosures. The report, posted online on April 7, 2026, highlights Vornado’s in...
Business Operations and StrategyFinancial DisclosuresRegulatory Filings and Compliance
Vornado Realty Reports Strong 2025 Profitability Rebound
Positive
Apr 7, 2026
On April 7, 2026, Vornado Realty Trust reported its 2025 results to U.S. regulators, highlighting a sharp rebound in profitability, with net income attributable to common shares rising to $842.9 million, or $4.20 per diluted share, from $8.3 milli...
Private Placements and Financing
Vornado Realty Completes $500 Million Senior Notes Offering
Positive
Jan 14, 2026
On January 14, 2026, Vornado Realty L.P., the operating partnership of Vornado Realty Trust, completed an underwritten public offering of $500 million aggregate principal amount of 5.750% notes due 2033 under an effective shelf registration statem...
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.