We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Vornado Stock Rallies 11% in a Month: Will This Trend Last?
Read MoreHide Full Article
Key Takeaways
Vornado stock jumped 11% in a month, topping the industry growth of 1.3%.
The REIT acquired the 623 Fifth Avenue office condo for $218 million.
Vornado leased 1.7M sq ft in Q2, mostly NYC offices at strong rent gains.
Shares of Vornado Realty Trust (VNO - Free Report) have risen 11% in a month, outperforming the industry’s growth of 1.3%.
Vornado’s premium assets in a few select high-rent, high-barrier-to-entry markets are likely to prosper amid healthy demand. Portfolio-repositioning efforts and a healthy balance sheet bode well.
In early September, VNO completed the acquisition of the 623 Fifth Avenue office condominium, which encompasses 382,500 rentable square feet of space, for $218 million.
Analysts seem positive about this Zacks Rank #3 (Hold) company. The Zacks Consensus Estimate for its 2025 funds from operations (FFO) per share has been revised one cent upward over the past week to $2.27.
Image Source: Zacks Investment Research
Factors Behind VNO Stock’s Price Surge
Vornado boasts a concentration of high-quality assets and a strategic focus on expanding its market share in the New York City office market. Its focus on having assets in a few select high-rent, high-barrier-to-entry markets, along with a diversified tenant base that includes several industry bellwethers, is expected to drive steady cash flows and fuel its growth over the long term.
The growth of office-using jobs and the expansion of technology, finance, media and other firms are set to bolster rental revenues in the forthcoming quarters. Moreover, office occupiers remain keen to grow their office footprints in New York. During the second quarter of 2025, Vornado leased 1.7 million square feet overall, of which 1.5 million square feet was New York office at $101.44 starting rents, with mark-to-market rates of 8.7% cash and 11.8% GAAP.
Vornado is making opportunistic developments and divestitures in addition to business spin-offs. Strategic sell-outs provide the company with the dry powder to reinvest in opportunistic developments and redevelopments. In mid-August 2025, Vornado announced that its 55%-owned JV sold 512 West 22nd Street, a 173,000-square-foot Class A office building, for $205 million. Hence, timely portfolio-repositioning initiatives are likely to drive growth over the long term.
Vornado enjoys solid balance sheet strength. 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. A flexible financial position will enable it to take advantage of future investment opportunities and fund its development projects.
Key Risks for VNO Stock
The geographic concentration of assets and competition from developers and operators are key concerns for Vornado. A high debt burden adds to its woes.
The Zacks Consensus Estimate for SLG’s 2025 FFO per share has been raised by 10.1% over the past two months to $6.21.
The consensus estimate for TRNO’s current-year FFO per share has moved marginally northward in the past two months to $2.61.
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.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Vornado Stock Rallies 11% in a Month: Will This Trend Last?
Key Takeaways
Shares of Vornado Realty Trust (VNO - Free Report) have risen 11% in a month, outperforming the industry’s growth of 1.3%.
Vornado’s premium assets in a few select high-rent, high-barrier-to-entry markets are likely to prosper amid healthy demand. Portfolio-repositioning efforts and a healthy balance sheet bode well.
In early September, VNO completed the acquisition of the 623 Fifth Avenue office condominium, which encompasses 382,500 rentable square feet of space, for $218 million.
Analysts seem positive about this Zacks Rank #3 (Hold) company. The Zacks Consensus Estimate for its 2025 funds from operations (FFO) per share has been revised one cent upward over the past week to $2.27.
Image Source: Zacks Investment Research
Factors Behind VNO Stock’s Price Surge
Vornado boasts a concentration of high-quality assets and a strategic focus on expanding its market share in the New York City office market. Its focus on having assets in a few select high-rent, high-barrier-to-entry markets, along with a diversified tenant base that includes several industry bellwethers, is expected to drive steady cash flows and fuel its growth over the long term.
The growth of office-using jobs and the expansion of technology, finance, media and other firms are set to bolster rental revenues in the forthcoming quarters. Moreover, office occupiers remain keen to grow their office footprints in New York. During the second quarter of 2025, Vornado leased 1.7 million square feet overall, of which 1.5 million square feet was New York office at $101.44 starting rents, with mark-to-market rates of 8.7% cash and 11.8% GAAP.
Vornado is making opportunistic developments and divestitures in addition to business spin-offs. Strategic sell-outs provide the company with the dry powder to reinvest in opportunistic developments and redevelopments. In mid-August 2025, Vornado announced that its 55%-owned JV sold 512 West 22nd Street, a 173,000-square-foot Class A office building, for $205 million. Hence, timely portfolio-repositioning initiatives are likely to drive growth over the long term.
Vornado enjoys solid balance sheet strength. 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. A flexible financial position will enable it to take advantage of future investment opportunities and fund its development projects.
Key Risks for VNO Stock
The geographic concentration of assets and competition from developers and operators are key concerns for Vornado. A high debt burden adds to its woes.
Stocks to Consider
Some better-ranked stocks from the broader REIT sector are SL Green Realty (SLG - Free Report) and Terreno Realty (TRNO - 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 SLG’s 2025 FFO per share has been raised by 10.1% over the past two months to $6.21.
The consensus estimate for TRNO’s current-year FFO per share has moved marginally northward in the past two months to $2.61.
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.