Vornado Realty Trust Stock Earnings Reports

Vornado reported a very strong Q3 2025 with outsized Manhattan leasing and improving fundamentals. Key operating highlights: Vornado leased 3.7 million SF YTD (2.8M SF Manhattan office) with high starting rents (ex-NYU avg ~$99/SF YTD; Q3 avg ~$103/SF) and substantial mark-to-market gains. PENN District momentum is a major driver: PENN 2 is ~78% occupied after >1.3M SF leased (including post-quarter 188k SF), PENN 1 has ~1.6M SF leased since redevelopment started, and management expects PENN District incremental cash yield to be raised above prior guidance. Portfolio growth initiatives: acquisition of 623 Fifth Avenue for $218M with a planned high-end redevelopment (targeted delivery by YE 2027), 1.8M SF 350 Park Ave development with Citadel partner on schedule (demolition planned March 2026), and a planned 475-unit rental at a 34th Street site. Finance and guidance: immediate liquidity $2.6B (cash $1.15B + undrawn lines $1.44B); net debt/EBITDA improved to 7.3x; generated $1.5B net proceeds YTD and paid down $900M in debt. Q3 comparable FFO $0.57/sh vs $0.52 LY; management expects 2025 comparable FFO slightly above 2024, 2026 comparable FFO to be flattish vs 2025 (due to planned non-core sales and redevelopment-related offline income), and a meaningful inflection/earnings growth in 2027 as PENN 1/2 lease-up benefits flow through. Other items: signage/sign revenue approaching record levels (especially Times Square & PENN District); strong leasing in 555 California (San Francisco) where recovery continues; selective disposition program (at least ~$250–300M+ contemplated) to further delever and/or redeploy capital. Risks noted include litigation (650 Madison arbitration ruling under appeal) and timing of redevelopment/construction items that push cash/GAAP timing into 2026–2027.