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Vornado's (VNO) Q1 FFO & Revenues Miss Estimates, Up Y/Y
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Vornado Realty Trust (VNO - Free Report) reported first-quarter 2017 funds from operations (FFO) per share of $1.08, missing the Zacks Consensus Estimate of $1.25. However, FFO per share came in a cent higher than the prior-year quarter’s figure.
Results reflect a fall in occupancy in the Washington DC portfolio.
In the reported quarter, total revenue came in at $620.8 million, up 1.3% year over year. However, it lagged the Zacks Consensus Estimate of $628 million.
Quarter in Detail
In its New York portfolio, Vornado leased 553,000 square feet of office space and 10,000 square feet of retail space. Also, the company leased 100,000 square feet and 66,000 square feet of space in theMart and 555 California Street respectively. The company leased 545,000 square feet of office space in Washington DC.
At the quarter end, same-store occupancy in the New York portfolio was 96.6%, reflecting an expansion of 10 basis points (bps) sequentially and 40 bps year over year. However, same-store occupancy in the Washington DC portfolio was 90.2%, down 30 bps sequentially and 200 bps year over year.
Same-store earnings before interest, tax, depreciation and amortization for the New York portfolio increased 3.7% from a year ago and for Washington DC, it rose 0.7%.
As of Mar 31, 2017, Vornado had $1.48 billion of cash and cash equivalents, down from $1.5 billion as of Dec 31, 2016.
Other Important Developments
During the quarter, Vornado completed the demolition of two adjacent Washington, DC office properties, 1726 M Street and 1150 17th Street. These will be replaced by a new 335,000 square foot Class A office building at 1700 M Street with a total cost of around $170 million.
Our Viewpoint
Vornado’s results in the first quarter were disappointing. Though strategic acquisitions and divestitures are projected to improve growth in the long term, its portfolio-repositioning efforts, through property dispositions have earnings dilutive effects. Further, stiff competition and hike in interest rates remain concerns for the company.
Currently, Vornado carries a Zacks Rank #3 (Hold).
Vornado Realty Trust Price, Consensus and EPS Surprise
We now look forward to the earnings releases of The St. Joe Company (JOE - Free Report) , Lamar Advertising Company (LAMR - Free Report) and Welltower Inc. , which are expected later this week.
Note: All EPS numbers presented in this write up represent funds from operations (FFO) per share. FFO, a widely used metric to gauge the performance of REITs, is obtained after adding depreciation and amortization and other non-cash expenses to net income.
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Vornado's (VNO) Q1 FFO & Revenues Miss Estimates, Up Y/Y
Vornado Realty Trust (VNO - Free Report) reported first-quarter 2017 funds from operations (FFO) per share of $1.08, missing the Zacks Consensus Estimate of $1.25. However, FFO per share came in a cent higher than the prior-year quarter’s figure.
Results reflect a fall in occupancy in the Washington DC portfolio.
In the reported quarter, total revenue came in at $620.8 million, up 1.3% year over year. However, it lagged the Zacks Consensus Estimate of $628 million.
Quarter in Detail
In its New York portfolio, Vornado leased 553,000 square feet of office space and 10,000 square feet of retail space. Also, the company leased 100,000 square feet and 66,000 square feet of space in theMart and 555 California Street respectively. The company leased 545,000 square feet of office space in Washington DC.
At the quarter end, same-store occupancy in the New York portfolio was 96.6%, reflecting an expansion of 10 basis points (bps) sequentially and 40 bps year over year. However, same-store occupancy in the Washington DC portfolio was 90.2%, down 30 bps sequentially and 200 bps year over year.
Same-store earnings before interest, tax, depreciation and amortization for the New York portfolio increased 3.7% from a year ago and for Washington DC, it rose 0.7%.
As of Mar 31, 2017, Vornado had $1.48 billion of cash and cash equivalents, down from $1.5 billion as of Dec 31, 2016.
Other Important Developments
During the quarter, Vornado completed the demolition of two adjacent Washington, DC office properties, 1726 M Street and 1150 17th Street. These will be replaced by a new 335,000 square foot Class A office building at 1700 M Street with a total cost of around $170 million.
Our Viewpoint
Vornado’s results in the first quarter were disappointing. Though strategic acquisitions and divestitures are projected to improve growth in the long term, its portfolio-repositioning efforts, through property dispositions have earnings dilutive effects. Further, stiff competition and hike in interest rates remain concerns for the company.
Currently, Vornado carries a Zacks Rank #3 (Hold).
Vornado Realty Trust Price, Consensus and EPS Surprise
Vornado Realty Trust Price, Consensus and EPS Surprise | Vornado Realty Trust Quote
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
We now look forward to the earnings releases of The St. Joe Company (JOE - Free Report) , Lamar Advertising Company (LAMR - Free Report) and Welltower Inc. , which are expected later this week.
Note: All EPS numbers presented in this write up represent funds from operations (FFO) per share. FFO, a widely used metric to gauge the performance of REITs, is obtained after adding depreciation and amortization and other non-cash expenses to net income.
5 Trades Could Profit "Big-League" from Trump Policies
If the stocks above spark your interest, wait until you look into companies primed to make substantial gains from Washington's changing course.
Today Zacks reveals 5 tickers that could benefit from new trends like streamlined drug approvals, tariffs, lower taxes, higher interest rates, and spending surges in defense and infrastructure. See these buy recommendations now >>