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Vornado Realty to Report Q3 Earnings: What's in Store for the Stock?
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Key Takeaways
Vornado Realty Trust is slated to release third-quarter 2025 results on Nov. 3, after market close.
VNO's Q3 revenues and FFO per share are expected to rise year over year amid strong leasing demand.
Occupancy in Vornado's New York portfolio is projected at 85.7%, up from 85.2% a year earlier.
Vornado Realty Trust (VNO - Free Report) is scheduled to report third-quarter 2025 results on Nov. 3, after market close. The company’s quarterly results are likely to display a year-over-year rise in revenues as well as funds from operations (FFO) per share.
In the last reported quarter, this New York-based real estate investment trust’s (REIT) FFO per share, plus assumed conversions, on an adjusted basis of 56 cents, beat the Zacks Consensus Estimate of 53 cents. Results displayed growth in total same-store net operating income (NOI) year over year. Also, Vornado witnessed decent leasing activity during the quarter.
Over the trailing four quarters, Vornado’s FFO per share, plus assumed conversions, on an adjusted basis, beat the Zacks Consensus Estimate on each occasion, the average surprise being 12.1%. This is depicted in the graph below:
Per a Cushman & Wakefield report, the U.S. office demand is witnessing solid momentum for high-quality spaces as more companies are now expanding their footprint after years of curtailment. The supply pressure is also continuing to recede.
During the third quarter, though net absorption for the broader office market turned out to be negative, the gross leasing activity trended upward. Out of the 92 U.S. markets tracked by Cushman & Wakefield Research, 46 experienced positive absorption.
The demand for Class A assets is high due to companies' preference, driven by a focus on employee retention through enhanced experience. Fourteen markets experienced positive Class A absorption despite overall negative absorption.
The accelerating demand resulted in a contraction of vacant sublease availabilities by 14.5% from its first-quarter 2024 peak, with 55 U.S. markets witnessing year-over-year declines. Vacancy in obsolete assets is becoming increasingly prevalent.
Supply pressures are decelerating due to dwindling new construction activity and lower deliveries. The under-construction pipeline for the third quarter of 2025 stood at 22.5 million square feet (MSF), the lowest total in the 21st century, representing a tad 0.4% of the total office inventory. At the same time, new deliveries in the third quarter at just 7.1 MSF were 30% lower than the quarterly average since 2020.
Factors to Consider Ahead of VNO’s Results
In the context of the above U.S. office market environment, suggesting high demand for quality offices, Vornado’s strategically located premium portfolio is likely to have witnessed healthy demand during the quarter, aiding leasing activity.
Moreover, the company’s focus on opportunistic developments and divestitures, in addition to business spin-offs to improve its core business, added value-accretive investments, aiding revenue growth.
A well-diversified tenant base that includes several industry bellwethers led to stable revenue generation for the quarter.
VNO’s Projections
The consensus mark for Vornado’s New York revenues is pinned at $362.9 million, almost flat growth from the prior-year quarter.
The Zacks Consensus Estimate for quarterly revenues is pegged at $443.3 million, implying almost flattish growth year over year.
The consensus mark for Vornado’s other revenues stands at $81.8 million, up from $80.8 million reported in the prior-year quarter.
The Zacks Consensus Estimate for occupancy in the New York office portfolio is pegged at 85.7%, up from 85.2% reported a year ago.
The company’s activities during the to-be-reported quarter were inadequate to garner analysts’ confidence. The Zacks Consensus Estimate for the quarterly FFO per share has remained unchanged at 55 cents for more than three months. However, the figure indicates a 5.8% increase from the prior-year period’s reported number.
What Our Quantitative Model Predicts for VNO
Our proven model does not conclusively predict a surprise in terms of FFO per share for Vornado this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an FFO beat, which is not the case here.
Vornado has an Earnings ESP of -1.72% and currently carries a Zacks Rank of 3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks That Warrant a Look
Here are two other stocks from the broader REIT industry — Realty Income (O - Free Report) and Jones Lang LaSalle (JLL - Free Report) — that you may want to consider, as our model shows that these have the right combination of elements to report a surprise this quarter.
Jones Lang LaSalle, scheduled to report quarterly numbers on Nov. 5, currently has an Earnings ESP of +0.95% and a Zacks Rank of 3.
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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Vornado Realty to Report Q3 Earnings: What's in Store for the Stock?
Key Takeaways
Vornado Realty Trust (VNO - Free Report) is scheduled to report third-quarter 2025 results on Nov. 3, after market close. The company’s quarterly results are likely to display a year-over-year rise in revenues as well as funds from operations (FFO) per share.
In the last reported quarter, this New York-based real estate investment trust’s (REIT) FFO per share, plus assumed conversions, on an adjusted basis of 56 cents, beat the Zacks Consensus Estimate of 53 cents. Results displayed growth in total same-store net operating income (NOI) year over year. Also, Vornado witnessed decent leasing activity during the quarter.
Over the trailing four quarters, Vornado’s FFO per share, plus assumed conversions, on an adjusted basis, beat the Zacks Consensus Estimate on each occasion, the average surprise being 12.1%. This is depicted in the graph below:
Vornado Realty Trust Price and EPS Surprise
Vornado Realty Trust price-eps-surprise | Vornado Realty Trust Quote
US Office Market in Q3
Per a Cushman & Wakefield report, the U.S. office demand is witnessing solid momentum for high-quality spaces as more companies are now expanding their footprint after years of curtailment. The supply pressure is also continuing to recede.
During the third quarter, though net absorption for the broader office market turned out to be negative, the gross leasing activity trended upward. Out of the 92 U.S. markets tracked by Cushman & Wakefield Research, 46 experienced positive absorption.
The demand for Class A assets is high due to companies' preference, driven by a focus on employee retention through enhanced experience. Fourteen markets experienced positive Class A absorption despite overall negative absorption.
The accelerating demand resulted in a contraction of vacant sublease availabilities by 14.5% from its first-quarter 2024 peak, with 55 U.S. markets witnessing year-over-year declines. Vacancy in obsolete assets is becoming increasingly prevalent.
Supply pressures are decelerating due to dwindling new construction activity and lower deliveries. The under-construction pipeline for the third quarter of 2025 stood at 22.5 million square feet (MSF), the lowest total in the 21st century, representing a tad 0.4% of the total office inventory. At the same time, new deliveries in the third quarter at just 7.1 MSF were 30% lower than the quarterly average since 2020.
Factors to Consider Ahead of VNO’s Results
In the context of the above U.S. office market environment, suggesting high demand for quality offices, Vornado’s strategically located premium portfolio is likely to have witnessed healthy demand during the quarter, aiding leasing activity.
Moreover, the company’s focus on opportunistic developments and divestitures, in addition to business spin-offs to improve its core business, added value-accretive investments, aiding revenue growth.
A well-diversified tenant base that includes several industry bellwethers led to stable revenue generation for the quarter.
VNO’s Projections
The consensus mark for Vornado’s New York revenues is pinned at $362.9 million, almost flat growth from the prior-year quarter.
The Zacks Consensus Estimate for quarterly revenues is pegged at $443.3 million, implying almost flattish growth year over year.
The consensus mark for Vornado’s other revenues stands at $81.8 million, up from $80.8 million reported in the prior-year quarter.
The Zacks Consensus Estimate for occupancy in the New York office portfolio is pegged at 85.7%, up from 85.2% reported a year ago.
The company’s activities during the to-be-reported quarter were inadequate to garner analysts’ confidence. The Zacks Consensus Estimate for the quarterly FFO per share has remained unchanged at 55 cents for more than three months. However, the figure indicates a 5.8% increase from the prior-year period’s reported number.
What Our Quantitative Model Predicts for VNO
Our proven model does not conclusively predict a surprise in terms of FFO per share for Vornado this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an FFO beat, which is not the case here.
Vornado has an Earnings ESP of -1.72% and currently carries a Zacks Rank of 3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks That Warrant a Look
Here are two other stocks from the broader REIT industry — Realty Income (O - Free Report) and Jones Lang LaSalle (JLL - Free Report) — that you may want to consider, as our model shows that these have the right combination of elements to report a surprise this quarter.
Realty Income is slated to report quarterly numbers on Nov. 3. O has an Earnings ESP of +0.37% and a Zacks Rank of 3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Jones Lang LaSalle, scheduled to report quarterly numbers on Nov. 5, currently has an Earnings ESP of +0.95% and a Zacks Rank of 3.
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.