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Vornado's (VNO) Q2 FFO In Line, Revenues Decline Y/Y, NOI Up
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Vornado Realty Trust’s (VNO - Free Report) second-quarter 2021 funds from operations (FFO) plus assumed conversions as adjusted of 69 cents per share is in line with the Zacks Consensus Estimate. The reported figure comes in 23.2% higher than the year-ago quarter’s 56 cents.
Vornado’s results display year-over-year growth in same-store net operating income (NOI) in the New York portfolio, theMART and 555 California Street.
Total revenues were around $378.9 million in the reported quarter, lagging the Zacks Consensus Estimate of $383.4 million. However, revenues compare favorably with the year-ago number of $343 million.
Despite the removal of restrictions and limitations on Jun 15, Vornado’s retail tenants continue to be affected by the economic conditions and other factors, including the limitations on international travel.
Amid these, the company continues to agree to rent deferrals and rent abatements for certain tenants. For the reported quarter, it collected 97% of the rent. This comprised collections of 98% from its office tenants and 93% from retail tenants.
Behind the Headline Numbers
In the New York portfolio, 322,000 square feet of office space (292,000 square feet at share) and 18,000 square feet of retail space (17,000 square feet at share) were leased during the June-end quarter. Also, 114,000 square feet of area (all at share) was leased at theMart and 51,000 square feet at 555 California Street (35,000 square feet at share).
At the end of the second quarter, occupancy in the New York portfolio was 90%, down from the 95.2% witnessed at the prior-year quarter end. Occupancy in theMART was 89.1%, down from the 91.4% reported as of Jun 30, 2020. Additionally, occupancy in 555 California Street was 97.8%, down from the prior year’s 99%.
In the reported quarter, total same-store NOI (at share) improved 13.6% year over year. Same-store NOI at theMART and the New York portfolio increased 3.4% and 14.9%, respectively. Same-store NOI in the company’s 555 California Street climbed 8.9%.
As of Jun 30, 2021, the company had $2.17 billion of cash and cash equivalents, up from the $1.62 billion reported as of Dec 31, 2020.
Prologis, Inc. (PLD - Free Report) came up with second-quarter core FFO per share of $1.01, surpassing the Zacks Consensus Estimate of 99 cents. Results underlined all-time low vacancies in its markets that aided rent growth and valuation increases.
Boston Properties Inc.’s (BXP - Free Report) second-quarter 2021 FFO per share of $1.72 beat the Zacks Consensus Estimate of $1.61. The quarterly figure also exceeded the mid-point of the company’s second-quarter guidance by 12 cents, highlighting an improved portfolio performance, and better-than-projected parking, hotel, retail and termination income.
Highwoods Properties, Inc.’s (HIW - Free Report) quarterly FFO per share of 93 cents topped the Zacks Consensus Estimate by a cent. Rental and other revenues of $185.5 million outpaced the consensus mark of $184.9 million.
Note: Anything related to earnings presented in this write-up represent funds from operations (FFO) — a widely used metric to gauge the performance of REITs.
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Vornado's (VNO) Q2 FFO In Line, Revenues Decline Y/Y, NOI Up
Vornado Realty Trust’s (VNO - Free Report) second-quarter 2021 funds from operations (FFO) plus assumed conversions as adjusted of 69 cents per share is in line with the Zacks Consensus Estimate. The reported figure comes in 23.2% higher than the year-ago quarter’s 56 cents.
Vornado’s results display year-over-year growth in same-store net operating income (NOI) in the New York portfolio, theMART and 555 California Street.
Total revenues were around $378.9 million in the reported quarter, lagging the Zacks Consensus Estimate of $383.4 million. However, revenues compare favorably with the year-ago number of $343 million.
Despite the removal of restrictions and limitations on Jun 15, Vornado’s retail tenants continue to be affected by the economic conditions and other factors, including the limitations on international travel.
Amid these, the company continues to agree to rent deferrals and rent abatements for certain tenants. For the reported quarter, it collected 97% of the rent. This comprised collections of 98% from its office tenants and 93% from retail tenants.
Behind the Headline Numbers
In the New York portfolio, 322,000 square feet of office space (292,000 square feet at share) and 18,000 square feet of retail space (17,000 square feet at share) were leased during the June-end quarter. Also, 114,000 square feet of area (all at share) was leased at theMart and 51,000 square feet at 555 California Street (35,000 square feet at share).
At the end of the second quarter, occupancy in the New York portfolio was 90%, down from the 95.2% witnessed at the prior-year quarter end. Occupancy in theMART was 89.1%, down from the 91.4% reported as of Jun 30, 2020. Additionally, occupancy in 555 California Street was 97.8%, down from the prior year’s 99%.
In the reported quarter, total same-store NOI (at share) improved 13.6% year over year. Same-store NOI at theMART and the New York portfolio increased 3.4% and 14.9%, respectively. Same-store NOI in the company’s 555 California Street climbed 8.9%.
As of Jun 30, 2021, the company had $2.17 billion of cash and cash equivalents, up from the $1.62 billion reported as of Dec 31, 2020.
Vornado currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Vornado Realty Trust Price, Consensus and EPS Surprise
Vornado Realty Trust price-consensus-eps-surprise-chart | Vornado Realty Trust Quote
Performance of Other REITs
Prologis, Inc. (PLD - Free Report) came up with second-quarter core FFO per share of $1.01, surpassing the Zacks Consensus Estimate of 99 cents. Results underlined all-time low vacancies in its markets that aided rent growth and valuation increases.
Boston Properties Inc.’s (BXP - Free Report) second-quarter 2021 FFO per share of $1.72 beat the Zacks Consensus Estimate of $1.61. The quarterly figure also exceeded the mid-point of the company’s second-quarter guidance by 12 cents, highlighting an improved portfolio performance, and better-than-projected parking, hotel, retail and termination income.
Highwoods Properties, Inc.’s (HIW - Free Report) quarterly FFO per share of 93 cents topped the Zacks Consensus Estimate by a cent. Rental and other revenues of $185.5 million outpaced the consensus mark of $184.9 million.
Note: Anything related to earnings presented in this write-up represent funds from operations (FFO) — a widely used metric to gauge the performance of REITs.