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Vornado's (VNO) FFO and Revenues Surpass Estimates in Q1
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Vornado Realty Trust’s (VNO - Free Report) first-quarter 2022 funds from operations (FFO) plus assumed conversions as adjusted per share of 79 cents topped the Zacks Consensus Estimate of 76 cents.
Vornado’s results display year-over-year growth in the same-store net operating income (NOI) in its New York, theMART and 555 California Street portfolios.
Total revenues came in at $442.1 million in the reported quarter, surpassing the Zacks Consensus Estimate of $422.3 million.
Further, on a year-over-year basis, both FFO per share and revenues grew 21.5% and 16.4%, respectively.
Behind the Headlines
In the reported quarter, total same-store NOI (at share) improved 3.1% year over year. While the metric at theMART increased 10%, the same for the New York portfolio grew 2.5%. The same-store NOI (at share) of Vornado’s 555 California Street climbed 3.2%.
However, operating expenses jumped 13.4% to $216.5 million year over year. Total capital expenditures and leasing commissions totaled $36.3 million.
During the quarter, in the New York portfolio, 272,000 square feet of office space (236,000 square feet at share) was leased for an initial rent of $81.07 per square foot and a weighted average lease term of 8.8 years. In the New York retail portfolio, 20,000 square feet was leased (all at share) at an initial rent of $171.62 per square foot and a weighted average lease term of 14.1 years.
Additionally, at theMART 149,000 square feet of space (all at share) was leased for an initial rent of $49.79 per square foot and a weighted average lease term of 8.2 years.
VNO leased 56,000 square feet at 555 California (39,000 square feet at share) at an initial rent of $91.49 per square foot and a weighted average lease term of 6.8 years.
During the reported quarter, Vornado closed the sale of one condominium unit at 220 CPS for net proceeds of $15.1 million.
As of Mar 31, 2022, occupancy in the New York portfolio was 91.2%, down from 91.6% at the end of the year-ago quarter. Occupancy in theMART remained unchanged at 88.9%, while occupancy in 555 California Street fell to 94.2% from the prior-year quarter’s 97.8%.
Balance Sheet
Vornado exited first-quarter 2022 with cash and cash equivalents of $973.8 million, down from $1.76 billion as of Dec 31, 2021.
VNO’s consolidated debt as of Mar 31, 2022, was $8.7 billion.
Cousins Properties Incorporated’s (CUZ - Free Report) first-quarter 2022 FFO per share of 67 cents came in line with the Zacks Consensus Estimate.
Cousins Properties’ total revenues aggregated $186.9 million, exceeding the Zacks Consensus Estimate of $184.7 million.
However, on a year-over-year basis, CUZ’s FFO per share and total revenues declined 2.9% and 1.4%, respectively.
The slight growth in revenue was offset by a rise in operating expenses during the first-quarter. Leasing activity fell year-over-year.
Mid-America Apartment Communities, Inc. (MAA - Free Report) , commonly referred to as MAA, reported first-quarter 2022 core FFO per share of $1.97, surpassing the Zacks Consensus Estimate of $1.92. The reported number increased 20.1% year over year.
MAA’s quarterly results were driven by an increase in the average effective rent per unit for the same-store portfolio. The average physical occupancy for the same-store portfolio also increased year over year.
The rental and other property revenues came in at $476.1 million, outpacing the Zacks Consensus Estimate of $474.2 million. The reported figure was 12% higher than the previous-year quarter’s $425 million.
AvalonBay Communities, Inc.’s (AVB - Free Report) first-quarter 2022 core FFO per share of $2.26 matched the Zacks Consensus Estimate.
However, total revenues of $613.9 million narrowly missed the consensus estimate of $615.4 million.
On a year-over-year basis, AVB’s core FFO per share increased 15.9% on 11.4% growth in total revenues.
The first-quarter results reflected a year-over-year increase in same-store residential revenues, partially offset by rising operating expenses.
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) FFO and Revenues Surpass Estimates in Q1
Vornado Realty Trust’s (VNO - Free Report) first-quarter 2022 funds from operations (FFO) plus assumed conversions as adjusted per share of 79 cents topped the Zacks Consensus Estimate of 76 cents.
Vornado’s results display year-over-year growth in the same-store net operating income (NOI) in its New York, theMART and 555 California Street portfolios.
Total revenues came in at $442.1 million in the reported quarter, surpassing the Zacks Consensus Estimate of $422.3 million.
Further, on a year-over-year basis, both FFO per share and revenues grew 21.5% and 16.4%, respectively.
Behind the Headlines
In the reported quarter, total same-store NOI (at share) improved 3.1% year over year. While the metric at theMART increased 10%, the same for the New York portfolio grew 2.5%. The same-store NOI (at share) of Vornado’s 555 California Street climbed 3.2%.
However, operating expenses jumped 13.4% to $216.5 million year over year. Total capital expenditures and leasing commissions totaled $36.3 million.
During the quarter, in the New York portfolio, 272,000 square feet of office space (236,000 square feet at share) was leased for an initial rent of $81.07 per square foot and a weighted average lease term of 8.8 years. In the New York retail portfolio, 20,000 square feet was leased (all at share) at an initial rent of $171.62 per square foot and a weighted average lease term of 14.1 years.
Additionally, at theMART 149,000 square feet of space (all at share) was leased for an initial rent of $49.79 per square foot and a weighted average lease term of 8.2 years.
VNO leased 56,000 square feet at 555 California (39,000 square feet at share) at an initial rent of $91.49 per square foot and a weighted average lease term of 6.8 years.
During the reported quarter, Vornado closed the sale of one condominium unit at 220 CPS for net proceeds of $15.1 million.
As of Mar 31, 2022, occupancy in the New York portfolio was 91.2%, down from 91.6% at the end of the year-ago quarter. Occupancy in theMART remained unchanged at 88.9%, while occupancy in 555 California Street fell to 94.2% from the prior-year quarter’s 97.8%.
Balance Sheet
Vornado exited first-quarter 2022 with cash and cash equivalents of $973.8 million, down from $1.76 billion as of Dec 31, 2021.
VNO’s consolidated debt as of Mar 31, 2022, was $8.7 billion.
Vornado currently carries a Zacks Rank #4 (Sell).
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
Cousins Properties Incorporated’s (CUZ - Free Report) first-quarter 2022 FFO per share of 67 cents came in line with the Zacks Consensus Estimate.
Cousins Properties’ total revenues aggregated $186.9 million, exceeding the Zacks Consensus Estimate of $184.7 million.
However, on a year-over-year basis, CUZ’s FFO per share and total revenues declined 2.9% and 1.4%, respectively.
The slight growth in revenue was offset by a rise in operating expenses during the first-quarter. Leasing activity fell year-over-year.
Mid-America Apartment Communities, Inc. (MAA - Free Report) , commonly referred to as MAA, reported first-quarter 2022 core FFO per share of $1.97, surpassing the Zacks Consensus Estimate of $1.92. The reported number increased 20.1% year over year.
MAA’s quarterly results were driven by an increase in the average effective rent per unit for the same-store portfolio. The average physical occupancy for the same-store portfolio also increased year over year.
The rental and other property revenues came in at $476.1 million, outpacing the Zacks Consensus Estimate of $474.2 million. The reported figure was 12% higher than the previous-year quarter’s $425 million.
AvalonBay Communities, Inc.’s (AVB - Free Report) first-quarter 2022 core FFO per share of $2.26 matched the Zacks Consensus Estimate.
However, total revenues of $613.9 million narrowly missed the consensus estimate of $615.4 million.
On a year-over-year basis, AVB’s core FFO per share increased 15.9% on 11.4% growth in total revenues.
The first-quarter results reflected a year-over-year increase in same-store residential revenues, partially offset by rising operating expenses.
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.