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Vornado Boosts Strength With Refinancing of 4 Union Square South

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Key Takeaways

  • Vornado completed a $120M refinancing for its Manhattan retail property, 4 Union Square South.
  • The 10-year loan carries a fixed 5.64% interest rate, replacing SOFR plus 1.50% loan maturing in August 2025.
  • The refinancing extends maturities, enhancing Vornado's liquidity and overall financial flexibility.

Vornado Realty Trust, Inc. (VNO - Free Report) announced that it has completed a refinancing of $120 million for 4 Union Square South, a Manhattan retail property encompassing 204,000 square feet of space.

The 10-year interest-only loan carries a fixed interest rate of 5.64%. It serves as a replacement for the previous $120 million loan, which had an interest rate at SOFR plus 1.50% and was originally set to mature in August 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. Furthermore, it focuses on achieving greater financial flexibility and strengthening its balance sheet position. As of June 30, 2025, the company had $2.92 billion of liquidity, consisting of $1.36 billion of cash and cash equivalents and restricted cash, and $1.56 billion available under its $2.2 billion revolving credit facilities.

In the past three months, shares of this Zacks Rank #3 (Hold) company have declined 5.9% against the industry's growth of 1.5%.

 

Zacks Investment Research
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Stocks to Consider

Some better-ranked stocks from the broader REIT sector are Host Hotels & Resorts (HST - Free Report) and W.P. Carey (WPC - Free Report) , each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The Zacks Consensus Estimate for HST’s 2025 FFO per share has moved a cent northward to $1.95 over the past week.

The Zacks Consensus Estimate for WPC’s 2025 FFO per share has moved a cent downward to $4.87 over the past month.

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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Host Hotels & Resorts, Inc. (HST) - free report >>

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