Vornado Realty Trust (VNO)
NYSE:VNO
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Vornado Realty
(NYSE:VNO)
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Rating:66Neutral
Price Target:
$42.00
▲(43.44% Upside)
Action:Reiterated
Date:05/23/26
The score is led by improving profitability and supportive cash generation, but is held back by declining TTM revenue, volatile/free-cash-flow contraction and elevated leverage. Technicals are moderately positive (above key short/intermediate moving averages with positive MACD), while valuation is mixed due to a negative P/E despite a moderate dividend yield. The earnings call adds a constructive medium-term outlook (leasing momentum, liquidity, accretive deals), tempered by weaker near-term FFO and cautious 2026 guidance.
Positive Factors
Leasing momentum & rent upside
Sustained leasing demand and meaningful mark-to-market gains indicate structural rent recovery in core Manhattan assets. Longer average lease terms and a >1M sqft negotiation pipeline support occupancy and cash flow resiliency over multiple years, underpinned by limited prime availability.
Negative Factors
Elevated leverage
High leverage relative to peers reduces balance-sheet flexibility and amplifies downside in a protracted office-cycle recovery. Elevated debt increases interest sensitivity and constrains capital allocation choices for redevelopment, tenant concessions, and future opportunistic investments.
Read all positive and negative factors
Positive Factors
Negative Factors
Leasing momentum & rent upside
Sustained leasing demand and meaningful mark-to-market gains indicate structural rent recovery in core Manhattan assets. Longer average lease terms and a >1M sqft negotiation pipeline support occupancy and cash flow resiliency over multiple years, underpinned by limited prime availability.
Read all positive factors
Vornado Realty (VNO) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$7.85B
Dividend Yield2.24%
Average Volume (3M)1.86M
Price to Earnings (P/E)9.1
Beta (1Y)1.33
Revenue Growth-0.27%
EPS Growth600.83%
CountryUS
Employees2,996
SectorReal Estate
Sector Strength53
IndustryREIT - Office
Share Statistics
EPS (TTM)3.81
Shares Outstanding188,097,760
10 Day Avg. Volume1,889,164
30 Day Avg. Volume1,857,100
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 Cap1.74
Enterprise Value/Revenue7.57
Enterprise Value/Gross Profit10.33
Enterprise Value/Ebitda8.34
Forecast
1Y Price Target
$33.91Price Target Upside15.81% Upside
Rating ConsensusHold
Number of Analyst Covering12
EPS Forecast (FY)0.01
Revenue Forecast (FY)$1.90B
Vornado Realty Business Overview & Revenue Model
Company Description
Vornado's property holdings are predominantly focused on the crucial New York City market, complemented by a top-tier asset in both Chicago and San Francisco. The company is also at the forefront of the real estate sector regarding its sustainabil...
How the Company Makes Money
Vornado primarily makes money by leasing space in its properties and collecting contractual rent from tenants. Its main revenue stream is rental income from office and retail leases, which can include fixed base rent and, depending on lease terms,...
Vornado Realty Earnings Call Summary
Earnings Call Date:May 04, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 03, 2026
Earnings Call Sentiment Positive
The call portrays a constructive, opportunity-driven outlook: strong leasing momentum, attractive opportunistic acquisitions (Park Avenue Plaza, 623 Fifth) and robust liquidity/ buybacks point to accelerating earnings potential into 2027. Near-term headwinds — a Q1 comparable FFO decline (~17%), temporary earnings drag from the 350 Park master lease modification, elevated TI, and modestly wider financing costs — create short-term pressure on cash flow and 2026 results. On balance, management presents multiple durable positives (tightening prime availability, solid pipelines, accretive acquisitions, strong liquidity and capital discipline) that outweigh the temporary challenges.Positive Updates
Strong Leasing Momentum in Manhattan and Nationwide
Manhattan leasing volume reached nearly 12 million square feet in Q1 (highest first quarter since 2014). Vornado leased 3.7 million square feet in 2025 (company's second-best year) with 960,000 square feet in Q4. In Q1 2026 Vornado released 426,000 square feet of office space overall, including 311,000 square feet in New York. Over 1.0 million square feet of leases are in negotiation across Vornado's New York pipeline.
Negative Updates
Quarterly Comparable FFO Decline
Q1 comparable FFO was $0.52 per share versus $0.63 per share a year ago, a decline of approximately 17% year-over-year. Management attributes the decrease to prior-year reversals (PENN 1 ground rent accrual reversal) and higher net interest expense, partially offset by other items.
Read all updates
Q1-2026 Updates
Positive
Negative
Strong Leasing Momentum in Manhattan and Nationwide
Manhattan leasing volume reached nearly 12 million square feet in Q1 (highest first quarter since 2014). Vornado leased 3.7 million square feet in 2025 (company's second-best year) with 960,000 square feet in Q4. In Q1 2026 Vornado released 426,000 square feet of office space overall, including 311,000 square feet in New York. Over 1.0 million square feet of leases are in negotiation across Vornado's New York pipeline.
Read all positive updates
Company Guidance
Management guided that comparable FFO was $0.52 in Q1 vs. $0.63 a year ago and that full‑year 2026 comparable FFO is expected to be slightly higher than 2025, ramping each quarter (helped by GAAP rents coming online and lower interest after bonds are repaid in June 2026) with “significant” earnings growth forecast for 2027 as PENN 1/PENN 2 lease‑up and the Park Avenue Plaza acquisition take effect; highlights and metrics cited include Q1 office releases of 426,000 sqft (311,000 sqft in NY), Manhattan leasing volume of nearly 12 million sqft in Q1, 2025 leasing of 3.7 million sqft (960,000 sqft in NY Q4), a New York pipeline of >1 million sqft in negotiation, average Manhattan starting rent of $103/sqft with mark‑to‑markets +11.7% GAAP / +9.7% cash and a 9‑year average lease term, Park Avenue Plaza (49% interest) 1.2M sqft, 99% occupied with 11‑year WAL bought at $950/sqft (~65–70% below replacement cost) with in‑place sub‑3% debt through 2031 and ~+$0.10 GAAP accretion on a full‑year basis, signed‑but‑not‑commenced rentpool ~$200M (modelers: ~$0.40/share flow over time, ~10–12% per quarter pacing), liquidity of $2.6B ($1.2B cash, $1.4B undrawn lines), no material financings needed over the next ~18 months, occupancy expected to return to mid‑to‑high‑90s over a couple years, and the board has authorized an additional $300M buyback after repurchasing 7M shares for $180M at an average $25.80.Vornado Realty Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
56
Neutral
Cash Flow
63
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.81B | 1.81B | 1.79B | 1.81B | 1.80B | 1.59B |
| Gross Profit | 1.32B | 1.81B | 1.79B | 906.00M | 926.08M | 791.89M |
| EBITDA | 1.64B | 1.77B | 880.61M | 845.61M | 423.31M | 840.50M |
| Net Income | 795.27M | 904.96M | 70.39M | 105.49M | -346.50M | 176.00M |
Balance Sheet | ||||||
| Total Assets | 15.92B | 15.52B | 16.00B | 16.19B | 16.49B | 17.27B |
| Cash, Cash Equivalents and Short-Term Investments | 1.08B | 840.85M | 733.95M | 997.00M | 1.36B | 1.76B |
| Total Debt | 8.41B | 7.89B | 8.99B | 8.98B | 9.13B | 8.99B |
| Total Liabilities | 9.21B | 8.72B | 9.83B | 9.84B | 9.98B | 10.06B |
| Stockholders Equity | 6.02B | 5.99B | 5.16B | 5.51B | 5.84B | 6.24B |
Cash Flow | ||||||
| Free Cash Flow | 1.25B | 1.26B | 537.72M | 648.15M | 798.94M | 761.81M |
| Operating Cash Flow | 1.25B | 1.26B | 537.72M | 648.15M | 798.94M | 761.81M |
| Investing Cash Flow | -389.92M | 115.51M | -597.37M | -128.79M | -906.86M | -532.35M |
| Financing Cash Flow | -459.55M | -1.35B | -252.32M | -278.94M | -801.27M | -29.48M |
Vornado Realty Technical Analysis
Positive
29.28
Price Trends
31.17
Positive
29.85
Positive
33.18
Positive
Market Momentum
2.06
Negative
74.63
Negative
88.26
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For VNO, the sentiment is Positive. The current price of 29.28 is below the 20-day moving average (MA) of 34.16, below the 50-day MA of 31.17, and below the 200-day MA of 33.18, indicating a bullish trend. The MACD of 2.06 indicates Negative momentum. The RSI at 74.63 is Negative, neither overbought nor oversold. The STOCH value of 88.26 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 |
|---|---|---|---|---|---|---|---|
67 Neutral | $3.29B | 35.13 | 3.94% | 7.83% | 0.88% | -47.90% | |
66 Neutral | $7.85B | 9.13 | 13.16% | 2.24% | -0.27% | 600.83% | |
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
65 Neutral | $4.77B | -919.47 | -0.11% | 5.08% | 12.11% | -109.72% | |
62 Neutral | $4.51B | 20.72 | 4.05% | 5.75% | -1.42% | 8.81% | |
58 Neutral | $11.61B | 33.15 | 6.17% | 5.26% | 1.62% | ― | |
56 Neutral | $3.94B | -23.86 | -3.89% | 6.95% | 7.65% | -478.02% |
* Real Estate Sector Average
VNO
Vornado Realty
38.27
-1.60
-4.01%
BXP
BXP
66.28
-3.16
-4.55%
CUZ
Cousins Properties
29.01
0.10
0.33%
HIW
Highwoods Properties
29.84
0.64
2.20%
KRC
Kilroy Realty
38.37
4.94
14.77%
SLG
SL Green Realty
51.15
-11.87
-18.83%
Vornado Realty Corporate Events
Business Operations and StrategyExecutive/Board ChangesShareholder Meetings
Vornado Realty Shareholders Approve Proposals at 2026 Meeting
Positive
May 22, 2026
Vornado Realty Trust held its 2026 Annual Meeting of Shareholders on May 21, 2026, with approximately 95% of the 188.5 million eligible common shares represented, underscoring strong investor participation. Shareholders elected ten nominees to the...
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...
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.