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Vornado's Joint Venture to Sell 512 West 22nd Street

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Vornado Realty Trust (VNO - Free Report) announced that its 55% owned joint venture (“JV”) has entered into an agreement to sell 512 West 22nd Street, a 173,000 square foot Class A office building, for $205 million. Subject to customary closing conditions, the sale is expected to close in the third quarter of 2025.

JV will use part of the proceeds to repay the $123.6 million mortgage loan encumbering the property.

Past Sale of VNO's JV

In January 2025, Vornado’s 52% owned street retail JV, the Fifth Avenue and Times Square, completed the sale of the portion of its U.S. flagship store at 666 Fifth Avenue to UNIQLO for $350 million and realized net proceeds of $342 million.

VNO: In a Snapshot

Vornado’s focus on having assets in a few select high-rent, high-barrier-to-entry geographic markets and its diversified tenant base, including several industry bellwethers, are expected to fuel its growth over the long term.

In the past month, shares of this Zacks Rank #3 (Hold) company have gained 14.5% compared to the industry's upside of 1.3%.

 

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Stocks to Consider

Some better-ranked stocks from the broader REIT sector are VICI Properties (VICI - Free Report) and Cousins Properties (CUZ - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The Zacks Consensus Estimate for VICI’s 2025 FFO per share has been moved one cent northward to $2.34 over the past month.

The consensus estimate for CUZ’s 2025 FFO per share has been revised upward by 1.1% to $2.79 over the past two months.

Note: Anything related to earnings presented in this write-up represents funds from operations (FFO), a widely used metric to gauge the performance of REITs.


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