Vornado Realty Trust Stock Earnings Reports

Vornado reported a strong third quarter driven by robust New York City leasing, particularly in the PENN District, and continued balance-sheet improvement. Key operational highlights: 3.7 million square feet leased year-to-date (2.8M Manhattan office), strong mark-to-market increases (third-quarter GAAP mark-to-market +15.7%, cash +10.4%), PENN 2 at ~78% occupancy after the quarter (now on track to exceed 80% year-end guidance) and more than 1.1 million square feet of leases in negotiation. Vornado completed the accretive acquisition of 623 Fifth Avenue (75% vacant; plan to redevelop into a high-end boutique office with targeted double-digit returns), is progressing on 350 Park Avenue with demolition set for March 2026, and plans a 475-unit rental at 34th Street. Financially, comparable FFO was $0.57/share (vs. $0.52 a year ago), comparable FFO expected slightly higher for 2025 vs 2024, and 2026 is expected to be flattish as asset sales and redevelopment temporarily take income offline. Liquidity and leverage improved materially: $1.15 billion cash, $1.44 billion undrawn lines (immediate liquidity $2.6B), net debt-to-EBITDA down to 7.3x from 8.6x YTD, and $1.5 billion generated from sales/financings/NYU deal YTD with $900M debt paydown. Management expects significant earnings inflection in 2027 as PENN 1 and PENN 2 lease-up benefits materialize. Signage and Times Square retail businesses are strong, with 2025 signage revenue projected to be a record year.