Vornado Looks to Enhance Shareholder Value

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By Trey Thoelcke Published

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Vornado Realty Trust (NYSE: VNO) apparently is looking for any avenue it can to generate more value for its shareholders. The real estate investment trust (REIT) reportedly is considering a spin-off of its suburban shopping centers as one method, and the aim is to perhaps take out $2 billion to $3 billion. Its stake in Toys”R”Us remains an elusive wild card with no end game in sight.

Dow Jones reported late on Tuesday that in recent months the New York-based commercial landlord also has discussed spinning off its strip malls into a separate company. Vornado then would merge the business with San Diego-based Retail Opportunity Investments Corp. (NASDAQ: ROIC), according to people familiar with the situation. And Vornado would avoid a large tax payment if shareholders take a majority stake in the combined company instead of cash.

Nothing is certain thus far, and talks are ongoing. Chairman and Chief Executive Steven Roth has a reputation for being deliberative, sometimes taking years to pull the trigger on big deals. Vornado also reportedly is studying other scenarios for the business. The company has tapped Morgan Stanley and Goldman Sachs as advisers.

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About the Author Trey Thoelcke →

Trey has been an editor and author at 24/7 Wall St. for more than a decade, where he has published thousands of articles analyzing corporate earnings, dividend stocks, short interest, insider buying, private equity, and market trends. His comprehensive coverage spans the full spectrum of financial markets, from blue-chip stalwarts to emerging growth companies.

Beyond 24/7 Wall St., Trey has created and edited financial content for Benzinga and AOL's BloggingStocks, contributing additional hundreds of articles to the investment community. He previously oversaw the 24/7 Climate Insights site, managing editorial operations and content strategy, and currently oversees and creates content for My Investing News.

Trey's editorial expertise extends across multiple publishing environments. He served as production editor at Dearborn Financial Publishing and development editor at Kaplan, where he helped shape financial education materials. Earlier in his career, he worked as a writer-producer at SVE. His freelance editing portfolio includes work for prestigious clients such as Sage Publications, Rand McNally, the Institute for Supply Management, the American Library Association, Eggplant Literary Productions, and Spiegel.

Outside of financial journalism, Trey writes fiction and has been an active member of the writing community for years, overseeing a long-running critique group and moderating workshop sessions at regional conventions. He lives with his family in an old house in the Midwest.

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