Vornado Realty (VNO) AI Stock Analysis

• Market Cap: $8.02B
• Dividend Yield: 1.93%
• Average Volume (3M): 1.80M
• Price to Earnings (P/E): 73.8
• Beta (1Y): 1.41
• Revenue Growth: 0.63%
• EPS Growth: 258.59%
• Country: US
• Employees: 2,996
• Sector: Real Estate
• Sector Strength: 51
• Industry: REIT - Office
• EPS (TTM): 0.43
• Shares Outstanding: 191,949,160
• 10 Day Avg. Volume: 1,430,688
• 30 Day Avg. Volume: 1,795,110
• PEG Ratio: 0.04
• Price to Book (P/B): 1.39
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 13.27
• Enterprise Value/Market Cap: 1.91
• Enterprise Value/Revenue: 2.15
• Enterprise Value/Gross Profit: 8.47
• Enterprise Value/Ebitda: 4.51
• 1Y Price Target: $40.00
• Price Target Upside: 4.11% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 9

• Rating: 69 Neutral
• Price Target: $42.00 ▲(9.32%Upside)

The overall stock score is driven by a positive earnings call, which highlighted strategic initiatives and strong financial performance. While financials show recovery and stability, valuation remains a concern with high P/E ratios. Technical indicators suggest neutral momentum.

Positive Factors

Financial Performance

Core FFO of $0.63 exceeded expectations, indicating strong financial performance.

Leasing Performance

The company leased 709k SF of NY office space, showing a strong leasing performance compared to the previous quarter.

Revenue Growth

The PENN District saw substantial rent increases, with major tenants like Apple expanding their leases, leading to significant potential revenue growth.

Negative Factors

Lease Structure

Prior to the ground lease's renewal, the lease payment was just $2.5M, but VNO guided to an increase to $26M due to the estimated increased land value, exhibiting the pitfalls of this structure.

Occupancy Rate

Total occupancy decreased to 83.5%, reflecting a decline compared to previous periods.

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 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 Money

Vornado Realty Trust generates revenue primarily through leasing its vast portfolio of office and retail properties to tenants. The company earns rental income, which constitutes the majority of its revenue, from long-term leases with various tenants, ensuring a steady cash flow. Additionally, Vornado engages in property development and management services, further augmenting its earnings. The company's strategic focus on high-demand urban locations, particularly in Manhattan, allows it to command premium rental rates. Furthermore, Vornado's revenue is bolstered by strategic partnerships and joint ventures that enable it to expand its reach and optimize its portfolio value. The REIT structure also allows Vornado to distribute a significant portion of its taxable income as dividends to shareholders, aligning with its business model and investor expectations.

Vornado Realty Financial Statement Overview

Summary

Vornado Realty demonstrates a commendable financial recovery with improved profitability metrics and a stable balance sheet. The cash flow position is healthy, though reliant on consistent income levels. Leverage is within industry norms, but profitability could be enhanced to deliver better returns to shareholders.

Income Statement

Vornado Realty shows a strong recovery in profitability with a TTM net profit margin of 9.17%, up from previous years, reflecting effective cost management. The EBIT and EBITDA margins are also robust, at 15.58% and 55.15% respectively, indicating efficient operations. Despite a modest revenue growth of 1.41% TTM, the company has improved its gross profit margin significantly by eliminating cost of goods sold, which now reflects total revenue.

Balance Sheet

Vornado Realty's balance sheet indicates a stable equity position with a debt-to-equity ratio of 1.60, suggesting moderate leverage typical for the REIT industry. The equity ratio remains strong at 34.06%, showing a solid asset base funded by equity. However, the return on equity is relatively low at 3.13% TTM, indicating limited profitability relative to shareholder investment.

Cash Flow

The company maintains a healthy operating cash flow to net income ratio of 3.36, reflecting strong cash generation relative to earnings. Free cash flow remains positive with a growth rate of 3.82%, supporting financial flexibility. However, reliance on operating cash flow highlights potential vulnerabilities if income fluctuates.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.79B	1.81B	1.80B	1.59B	1.53B
Gross Profit	1.79B	906.00M	926.08M	791.89M	738.88M
EBITDA	880.61M	845.61M	423.31M	792.48M	228.26M
Net Income	70.39M	105.49M	-382.61M	176.00M	-461.85M
Balance Sheet
Total Assets	16.00B	16.19B	16.49B	17.27B	16.22B
Cash, Cash Equivalents and Short-Term Investments	733.95M	997.00M	1.36B	1.76B	1.62B
Total Debt	8.99B	8.98B	9.13B	8.99B	7.80B
Total Liabilities	9.83B	9.84B	9.98B	10.06B	8.67B
Stockholders Equity	5.16B	5.51B	5.84B	6.24B	6.53B
Cash Flow
Free Cash Flow	537.72M	648.15M	795.94M	758.81M	29.19M
Operating Cash Flow	537.72M	648.15M	798.94M	761.81M	424.24M
Investing Cash Flow	-597.37M	-128.79M	-906.86M	-532.35M	-87.80M
Financing Cash Flow	-252.32M	-278.94M	-801.27M	-29.48M	-213.20M

Vornado Realty Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 38.42
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 38.42 is below the 20-day moving average (MA) of 38.74, below the 50-day MA of 38.87, and below the 200-day MA of 39.72, indicating a bearish trend. The MACD of 0.11 indicates Positive momentum. The RSI at 46.81 is Neutral, neither overbought nor oversold. The STOCH value of 33.24 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for VNO.

Vornado Realty Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
KRC	79 Outperform	$4.40B	20.06	4.06%	5.86%	2.26%	10.26%
ARE	70 Outperform	$13.75B	102.63	-0.12%	6.88%	3.12%	-116.29%
VNO	69 Neutral	$8.02B	73.76	3.06%	1.93%	0.63%	258.59%
Sector *	63 Neutral	$6.78B	14.59	-1.87%	7.22%	3.95%	-36.33%
CUZ	62 Neutral	$4.66B	82.86	1.15%	4.72%	10.93%	-31.07%
SLG	58 Neutral	$4.50B	663.10	-0.35%	5.34%	14.21%	79.46%
BXP	57 Neutral	$12.25B	3,557.07	0.07%	5.99%	3.24%	-97.73%

Vornado Realty Corporate Events

Vornado Realty Holds Annual Shareholder Meeting

On May 22, 2025, Vornado Realty Trust held its annual meeting of shareholders, where approximately 94% of the shares were represented. During the meeting, three key proposals were voted on: the election of ten nominees to the Board of Trustees, the ratification of Deloitte & Touche LLP as the independent public accounting firm for 2025, and a non-binding advisory resolution on executive compensation. The outcomes of these votes are expected to influence the company’s governance and operational decisions in the coming year.

The most recent analyst rating on (VNO) stock is a Sell with a $35.00 price target. To see the full list of analyst forecasts on Vornado Realty stock, see the VNO Stock Forecast page.