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Vornado's Joint Venture Boosts Strength With $675M Refinancing

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Key Takeaways

  • Vornado's JV secured a $675 million refinancing for the Independence Plaza complex in Manhattan
  • The new five-year, interest-only loan carries a fixed rate of 5.84% and matures in June 2030.
  • This replaces a prior $675 million loan with a 4.25% rate that was set to mature in July 2025.

Vornado Realty Trust, Inc. (VNO - Free Report) announced that its joint venture (JV), in which it holds a 50.1% stake, has completed a refinancing of $675 million for Independence Plaza, a residential complex comprising 1,328 units located in the Tribeca submarket of Manhattan.

The five-year interest-only loan is set to mature in June 2030 and carries a fixed interest rate of 5.84%. This loan serves as a replacement for the previous $675 million loan, which had an interest rate of 4.25% and was due to mature in July 2025.

VNO: In a Snapshot

This refinancing offers Vornado enhanced financial flexibility. The extended maturities of the assumed debt will help the company improve its maturity profile and enjoy greater liquidity for day-to-day operations.

VNO makes efforts to boost its cash flow and alleviate bottom-line pressure. Further, it focuses on achieving greater financial flexibility and strengthening its balance sheet position. As of March 31, 2025, the company had $2.3 billion of liquidity, consisting of $807 million of cash and cash equivalents and restricted cash, and $1.5 billion available under its $2.2 billion revolving credit facilities.

Over the past three months, shares of this Zacks Rank #3 (Hold) company have declined 1.6% compared with the industry's fall of 1.6%.

 

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Stocks to Consider

Some better-ranked stocks from the broader REIT sector are VICI Properties (VICI - Free Report) and W.P. Carey (WPC - Free Report) , each currently 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 moved one cent northward to $2.34 over the past two months.

The consensus estimate for WPC’s 2025 FFO per share has been revised upward by 1% to $4.88 over the past month.

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


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