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Vornado (VNO) Extends $1.25B Revolving Credit Facility

VNO ARE CTRE SRG

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Vornado Realty Trust (VNO - Free Report) has made the announcement of extending one of its two $1.25 billion unsecured revolving credit facilities. The facility has been extended to Feb 2021 from Jun 2017, with the option of two six-month extensions.
 
The interest rate on the extended facility of this New York-based real estate investment trust (“REIT”) was lowered from LIBOR plus 115 basis points to LIBOR plus 100 basis points. The facility fee remains at 20 basis points.

Vornado is the owner and manager of commercial real estate in the United States. In the third-quarter 2016, the company reported funds from operations (“FFO”) per share of $1.24, missing the Zacks Consensus Estimate of $1.28. The adjusted FFO per share for third-quarter 2015 was $1.21. Results reflect a fall in occupancy in both New York and Washington DC portfolios.

The second revolving credit facility of Vornado worth $1.25 billion will mature in Nov 2018, and has the option of two six-month extensions.

Currently, Vornado has a Zacks Rank #3 (Hold). Over the past 30 days, its current-quarter FFO estimates remained unchanged at $1.32.

Some better-ranked stocks in the same space include Seritage Growth Properties (SRG - Free Report) , Alexandria Real Estate Equities, Inc. (ARE - Free Report) and CareTrust REIT, Inc. (CTRE - Free Report) . While Seritage Growth Properties sports a Zacks Rank #1 (Strong Buy), both Alexandria Real Estate Equities and CareTrust REIT carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Seritage Growth Properties’ current quarter estimates have moved up 1.7% over the past one month to 57 cents.

Current quarter estimates for Alexandria Real Estate Equities and CareTrust REIT remained unchanged at $1.43 and 28 cents, respectively over the past month.

Note: 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. All EPS numbers presented in this write up represent FFO per share.

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