Vornado Realty Trust Stock Earnings Reports

Key points for investors:

- Market/Leasing: Management says Manhattan is the strongest US office market, with a pronounced landlord market and accelerating rents and demand for Class A space. Vornado reported strong leasing momentum (426k sq ft released in 1Q, 311k in NY), average Manhattan starting rents of ~$103/sq ft, and a robust pipeline (>1M sq ft in negotiation). San Francisco and Chicago activity also improving, though Chicago remains the most challenging.

- Financial results & guidance: 1Q comparable FFO was $0.52/share (vs. $0.63 LY). Management expects full-year 2026 comparable FFO to be slightly higher than 2025, with significant earnings growth expected in 2027 as GAAP rents from PENN 1 & PENN 2 ramp. Liquidity remains strong at ~$2.6B (cash $1.2B + undrawn lines $1.4B).

- Portfolio & developments: Vornado continues major projects (PENN 1 & 2 leasing and ramp through 2026 into 2027) and is progressing on 350 Park Ave development (joint venture with Citadel partner structure; management expects Citadel to anchor and expects to decide on participation by mid-July). A master-lease change at 350 Park reduced near-term earnings (some rent reduction while demolition/transition occurs), with capitalizing interest and future lease economics expected to offset over time.

- M&A / capital allocation: Acquired 49% of Park Avenue Plaza (1.2M sq ft) — management expects roughly $0.10 of accretion on a full-year, run-rate basis; Fisher family retains 51%. Redevelopment at 623 Fifth Ave progressing. Share buybacks active: $200M program partially executed (7M shares, ~$180M); board authorized an additional $300M program. Management says they will opportunistically balance buybacks, acquisitions, and project financing while maintaining conservative capital planning and prefunding.

- Strategy / risks: Management emphasizes a preference for non-recourse, project-level financing and maintaining ample cash. They note geopolitical uncertainty and financing spread widening could modestly affect pricing but that capital markets remain functional for high-quality NYC office assets. They flagged litigation and lease-document items (e.g., PENN litigation and 350 Park master-lease amendments) as items to watch.

- Corporate tone / public affairs: Chairman Steven Roth strongly addressed the recent public spat involving the mayor and Ken Griffin, voiced support for Griffin, emphasized Vornado’s role as a major NYC taxpayer and employer, and framed the importance of a business-friendly city environment for development projects (including 350 Park).