Vornado Realty Trust
Q4 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: −4.02%.
Did VNO Beat Earnings? Q4 2025 Results
Vornado Realty Trust closed out the fourth quarter of 2025 with a mixed but strategically eventful report, posting funds from operations of $0.56 per diluted share on revenue of $453.71 million, as a year-over-year decline from $0.58 in FFO reflected the absence of $19.20 million in one-time WeWork-related termination and recapture fees that had boosted the prior-year quarter, along with $9.20 million in higher net interest expense. New York occupancy climbed to 90.0% from 87.6% a year ago, and same-store NOI on a GAAP basis rose 5.0% in the quarter, underscoring improving leasing momentum even as cash-basis NOI declined 8.3%, partly shaped by the NYU master lease structure at 770 Broadway. Net debt to EBITDAre improved to 7.7x from 8.6x, reflecting balance sheet progress. Looking ahead, PENN 2 is projected to reach leasing stabilization in 2026 at an 11.6% incremental cash yield, while Citadel's option to acquire at least 60% of the 350 Park Avenue development joint venture signals a significant capital deployment inflection point for Vornado.
- New York occupancy improved to 90.0% from 87.6% a year ago
- Same-store NOI at share increased 5.0% YoY in Q4 (GAAP basis)
- THE MART same-store NOI surged 141.1% YoY in Q4
- 770 Broadway master lease with NYU generated $803.2M gain
- PENN 1 ground rent reversal of $17.2M previously accrued rent
- New York office leasing spreads of 8.1% GAAP and 7.2% cash in Q4
- Full-year same-store NOI at share up 5.4%
- 555 California Street same-store NOI declined 7.1% YoY in Q4 (GAAP basis) and 42.3% on cash basis
- Q4 sequential same-store NOI at share increased 4.2% vs Q3 2025
- FAD payout ratio of 97.4% for full year 2025 vs 42.3% in 2024
Forward Guidance & Outlook
Vornado anticipates continuing its common share dividend policy of paying one annual common share dividend in the fourth quarter of 2026. PENN 2 redevelopment (1.825M sq ft, $750M budget) is projected to reach leasing stabilization in 2026 with an 11.6% incremental cash yield. Sunset Pier 94 Studios targets 2027 stabilization at 9.0% yield, and 623 Fifth Avenue targets 2028 delivery at 10.1% yield. The Vornado/Rudin JV has until July 2026 to decide on the 350 Park Avenue JV with Citadel or exercise a put option for $900M to Vornado. The PENN 1 ground rent determination remains subject to ongoing litigation appeal.
VNO YoY Financials
VNO Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.