Companies /Real Estate

Vornado Realty Trust

NYSE: VNO Reit - Office
$36.59
▲ $0.05 (+0.14%) today
Markets closed · 7:18pm ET

Q2 2025 Earnings

Reported Aug 4, 2025, 4:37pm ET · SEC source
$0.56
Beat +0.00%
EPS · est. $0.00
$441.4M
Miss −5.84%
Revenue · est. $468.8M
+8.3%
Beating market
VNO vs S&P since report
1 quarter
Consecutive EPS beats

Market Reaction

% change · around the report
−9%−6%−3%0Aug 4Aug 5report 4:37pm ETearnings−0.5%−4.1%
−9%−6%−3%0Aug 4Aug 5earnings−0.5%−4.1%
VNO −4.1%S&P 500 −0.5%
−9%−6%−3%0Aug 4Aug 5report 4:37pm ETearnings−0.8%−4.1%
−9%−6%−3%0Aug 4Aug 5earnings−0.8%−4.1%
VNO −4.1%NASDAQ −0.8%
−8%−4%0Aug 4Aug 12report 4:37pm ETearnings+1.7%−5.3%
−8%−4%0Aug 4Aug 12earnings+1.7%−5.3%
VNO −5.3%S&P 500 +1.7%
−8%−4%0Aug 4Aug 12report 4:37pm ETearnings+2.7%−5.3%
−8%−4%0Aug 4Aug 12earnings+2.7%−5.3%
VNO −5.3%NASDAQ +2.7%
−4.06%
Day of report
+1.89%
Next session
−0.70%
One week
+11.35%
30 days

S&P 500 over the same 30 days: +3.07%.

Did VNO Beat Earnings? Q2 2025 Results

Vornado Realty Trust reported a quarter defined by transformation rather than ordinary operations, posting adjusted FFO per diluted share of $0.56 against total revenues of $441.44 million, as a landmark deal with New York University reshaped the company's balance sheet and income statement simultaneously. The centerpiece was a 70-year, sales-type master lease of 770 Broadway to NYU, under which the university made a $935.00 million prepaid payment for the 1,076,000-square-foot property on a triple-net basis, generating an $803.25 million gain and lifting GAAP net income to $743.82 million, or $3.70 per diluted share, compared to $35.26 million, or $0.18, a year ago. Vornado deployed the proceeds to retire a $700.00 million mortgage on the property, helping narrow net debt to EBITDAre to 7.2x from 8.6x a year prior. Looking ahead, the company's PENN 2 and Sunset Pier 94 Studios projects are both targeting 2026 stabilization, with projected incremental cash yields above 10%.

Key Takeaways
  • 770 Broadway master lease with NYU generating $803.2 million gain on sales-type lease
  • PENN 1 ground rent reset determination reducing annual rent to $15 million from prior $26.2 million accrual
  • Changes in THE MART tax assessed value added $9.2 million to FFO as adjusted
  • Variable businesses (primarily signage) contributed $2.4 million increase
  • Rent commencements net of lease expirations added $0.8 million
  • Same store NOI at share increased 5.4% on GAAP basis year-over-year
  • THE MART same store NOI at share increased 57.7% YoY driven by tax assessed value changes
  • 555 California Street same store NOI at share increased 3.1% YoY
  • New York same store NOI at share increased 1.8% YoY on GAAP basis

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. The company's active development projects — PENN 2 (stabilization year 2026, projected 10.2% incremental cash yield) and Sunset Pier 94 Studios (stabilization year 2026, projected 10.3% incremental cash yield) — have $95.4 million in remaining expenditures. Future development opportunities total approximately 4.3 million zoning square feet, including the Hotel Pennsylvania site (PENN 15) and the 350 Park Avenue assemblage, where an affiliate of Kenneth Griffin holds options through 2030 to either acquire a 60% JV interest or purchase the site outright.

VNO YoY Financials

Revenue$441.4M
Net Income$743.8M

VNO Revenue by Segment

New York Office$358.2M
New York Retail
THE MART
555 California Street
New York Residential

Figures from SEC filings and company reports. Not investment advice.