Vornado Realty Trust
Q1 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +7.22%.
Did VNO Beat Earnings? Q1 2025 Results
Vornado Realty Trust posted a compelling first quarter for 2025, with revenue of $461.58 million beating consensus estimates of $450.64 million by 2.43% and climbing 5.8% year-over-year, while EPS landed at $0.43 against a flat consensus expectation. The headline driver was a $76.16 million gain from the sale of a portion of 666 Fifth Avenue to UNIQLO for $350.00 million, which helped swing net income attributable to common shareholders to $86.84 million from a loss of $9.03 million a year ago. FFO as adjusted rose to $0.63 per diluted share from $0.55, bolstered further by a $17.24 million reversal of previously accrued PENN 1 ground rent expense. Liquidity also received a lift after Vornado secured a $450.00 million financing of 1535 Broadway at a 6.90% fixed rate, generating approximately $425.00 million in net cash proceeds. Looking ahead, active development projects PENN 2 and Sunset Pier 94 Studios both target 2026 stabilization at projected incremental cash yields of 10.2% and 10.3% respectively, underscoring management's confidence in a pipeline poised to unlock additional value.
- $76.2M net gain from sale of 666 Fifth Avenue condominium portion to UNIQLO
- $17.2M reversal of previously accrued PENN 1 ground rent following arbitration panel determination
- Same store NOI at share increased 3.5% year-over-year
- THE MART same store NOI at share - cash basis increased 16.7% year-over-year
- 555 California Street same store NOI at share - cash basis increased 7.1% year-over-year
- Strong office leasing volume of 709,000 sq ft at 14.7-year weighted average lease term
- Variable businesses (primarily signage) contributed $2.4M increase in FFO as adjusted
- EBITDAre as adjusted increased to $273.7M from $255.9M year-over-year
- Net debt to EBITDAre as adjusted improved to 8.2x from 8.6x at year-end 2024
Forward Guidance & Outlook
Vornado anticipates continuing its recent common share dividend policy of paying one common share dividend in the fourth quarter of 2025, subject to approval by its Board of Trustees. Active development projects PENN 2 and Sunset Pier 94 Studios are both targeting 2026 stabilization with projected incremental cash yields of 10.2% and 10.3% respectively. Future development opportunities include the Hotel Pennsylvania site (PENN 15) with 2,052,000 zoning square feet, the 350 Park Avenue assemblage with 1,389,000 zoning square feet, and several other sites totaling 4.3 million zoning square feet.
VNO YoY Financials
VNO Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.