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Vornado Realty Trust's adjusted FFO rose 9.6% year over year to $0.57 per share, topping estimates.
Revenues grew 2.4% to $453.7 million, with higher same-store NOI and occupancy gains across portfolios.
Vornado acquired 623 Fifth Avenue for $218 million and sold 512 West 22nd Street for $205 million.
Vornado Realty Trust’s (VNO - Free Report) third-quarter 2025 funds from operations (FFO) plus assumed conversions, on an adjusted basis, were 57 cents per share, which outpaced the Zacks Consensus Estimate of 55 cents. Moreover, the figure improved 9.6% year over year.
Results displayed year-over-year growth in total same-store net operating income (NOI) and occupancy. The company witnessed decent leasing activity.
Total revenues were $453.7 million in the reported quarter, which surpassed the Zacks Consensus Estimate of $443.3 million. On a year-over-year basis, revenues increased 2.4%.
VNO’s Q3 in Detail
In the reported quarter, total same-store NOI (at share) came in at $266.7 million compared with $265.5 million in the prior-year quarter. The metrics for the New York and 555 California Street portfolios increased 9.1% and 3.8%, respectively, from the prior-year period. However, the same decreased 10.4% for THE MART.
During the quarter, in the New York office portfolio, 594,000 square feet of office space (542,000 square feet at share) was leased for an initial rent of $102.60 per square foot and a weighted average lease term of 12.5 years. The tenant improvements and leasing commissions were $13.07 per square foot per annum or 12.7% of the initial rent.
In the New York retail portfolio, 27,000 square feet were leased (23,000 square feet at share) at an initial rent of $292.79 per square foot and a weighted average lease term of 9 years. The tenant improvements and leasing commissions were $22.54 per square foot per annum or 7.7% of the initial rent.
At THE MART, 158,000 square feet of space (all at share) was leased for an initial rent of $48.84 per square foot and a weighted average lease term of 10.5 years. The tenant improvements and leasing commissions were $14.52 per square foot per annum or 29.7% of the initial rent.
Vornado ended the quarter with occupancy in the total New York portfolio at 87.5%, up 80 basis points (bps) year over year. Occupancy in THE MART was 80.7%, up 100 bps year over year. Occupancy in 555 California Street was 96.3%, up 180 bps year over year.
VNO’s Portfolio Activity
In the third quarter of 2025, VNO completed the acquisition of the 623 Fifth Avenue office condominium encompassing 382,500 rentable square feet of space for $218 million. Situated above the flagship Saks Fifth Avenue department store, this 36-story building is currently 75% vacant. Vornado plans to completely reposition and redevelop the building into a premier, best-in-class, Class A boutique office building. The redevelopment is expected to be completed by 2027.
In the same period, a joint venture, in which the company owns a 55% interest, completed the sale of the 512 West 22nd Street, a 173,000 square foot office building for $205 million.
VNO’s Balance Sheet
Vornado exited the third quarter of 2025 with cash and cash equivalents of $1.01 billion, down from $1.2 billion as of June 30, 2025.
Cousins Properties (CUZ - Free Report) reported third-quarter 2025 FFO per share of 69 cents, in line with the Zacks Consensus Estimate. The figure increased 3% on a year-over-year basis.
CUZ experienced healthy leasing activity in the quarter. However, the weighted average occupancy decreased, while interest expenses increased and marred the growth tempo. CUZ also raised its 2025 outlook for FFO per share.
Boston Properties Inc.’s (BXP - Free Report) third-quarter 2025 FFO of $1.74 surpassed the Zacks Consensus Estimate of $1.72. However, the reported figure fell 3.9% year over year.
BXP’s quarterly results reflected better-than-anticipated revenues on healthy leasing activity. However, lower occupancy and higher interest expenses during the quarter marred its year-over-year FFO per share growth. BXP also revised its guidance for 2025 FFO per share.
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's Q3 FFO & Revenues Beat Estimates, Occupancy Improves
Key Takeaways
Vornado Realty Trust’s (VNO - Free Report) third-quarter 2025 funds from operations (FFO) plus assumed conversions, on an adjusted basis, were 57 cents per share, which outpaced the Zacks Consensus Estimate of 55 cents. Moreover, the figure improved 9.6% year over year.
Results displayed year-over-year growth in total same-store net operating income (NOI) and occupancy. The company witnessed decent leasing activity.
Total revenues were $453.7 million in the reported quarter, which surpassed the Zacks Consensus Estimate of $443.3 million. On a year-over-year basis, revenues increased 2.4%.
VNO’s Q3 in Detail
In the reported quarter, total same-store NOI (at share) came in at $266.7 million compared with $265.5 million in the prior-year quarter. The metrics for the New York and 555 California Street portfolios increased 9.1% and 3.8%, respectively, from the prior-year period. However, the same decreased 10.4% for THE MART.
During the quarter, in the New York office portfolio, 594,000 square feet of office space (542,000 square feet at share) was leased for an initial rent of $102.60 per square foot and a weighted average lease term of 12.5 years. The tenant improvements and leasing commissions were $13.07 per square foot per annum or 12.7% of the initial rent.
In the New York retail portfolio, 27,000 square feet were leased (23,000 square feet at share) at an initial rent of $292.79 per square foot and a weighted average lease term of 9 years. The tenant improvements and leasing commissions were $22.54 per square foot per annum or 7.7% of the initial rent.
At THE MART, 158,000 square feet of space (all at share) was leased for an initial rent of $48.84 per square foot and a weighted average lease term of 10.5 years. The tenant improvements and leasing commissions were $14.52 per square foot per annum or 29.7% of the initial rent.
Vornado ended the quarter with occupancy in the total New York portfolio at 87.5%, up 80 basis points (bps) year over year. Occupancy in THE MART was 80.7%, up 100 bps year over year. Occupancy in 555 California Street was 96.3%, up 180 bps year over year.
VNO’s Portfolio Activity
In the third quarter of 2025, VNO completed the acquisition of the 623 Fifth Avenue office condominium encompassing 382,500 rentable square feet of space for $218 million. Situated above the flagship Saks Fifth Avenue department store, this 36-story building is currently 75% vacant. Vornado plans to completely reposition and redevelop the building into a premier, best-in-class, Class A boutique office building. The redevelopment is expected to be completed by 2027.
In the same period, a joint venture, in which the company owns a 55% interest, completed the sale of the 512 West 22nd Street, a 173,000 square foot office building for $205 million.
VNO’s Balance Sheet
Vornado exited the third quarter of 2025 with cash and cash equivalents of $1.01 billion, down from $1.2 billion as of June 30, 2025.
VNO’s Zacks Rank
Vornado currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Vornado Realty Trust Price, Consensus and EPS Surprise
Vornado Realty Trust price-consensus-eps-surprise-chart | Vornado Realty Trust Quote
Performance of Other Office REITs
Cousins Properties (CUZ - Free Report) reported third-quarter 2025 FFO per share of 69 cents, in line with the Zacks Consensus Estimate. The figure increased 3% on a year-over-year basis.
CUZ experienced healthy leasing activity in the quarter. However, the weighted average occupancy decreased, while interest expenses increased and marred the growth tempo. CUZ also raised its 2025 outlook for FFO per share.
Boston Properties Inc.’s (BXP - Free Report) third-quarter 2025 FFO of $1.74 surpassed the Zacks Consensus Estimate of $1.72. However, the reported figure fell 3.9% year over year.
BXP’s quarterly results reflected better-than-anticipated revenues on healthy leasing activity. However, lower occupancy and higher interest expenses during the quarter marred its year-over-year FFO per share growth. BXP also revised its guidance for 2025 FFO per share.
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.