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.
How Vornado Is Expanding in Manhattan While Strengthening Liquidity
Read MoreHide Full Article
Key Takeaways
VNO bought 3 East 54th Street for $141M, adding a demolition-ready Plaza District development site.
VNO extended maturities on more than $2B of financing, pushing major facilities out to 2031.
VNO leased 3.7M square feet in the first nine months of 2025, supporting higher NYC occupancy.
Vornado Realty Trust (VNO - Free Report) has bolstered its Manhattan strategy with the acquisition of 3 East 54th Street, a demolition-ready development site covering 18,400 square feet in the prestigious Plaza District between Fifth and Madison Avenues. The property sits adjacent to the iconic St. Regis Hotel and nearby Upper Fifth Avenue retail assets that Vornado already owns, offering a strategic anchor in one of New York City’s most valuable commercial corridors.
Vornado completed the purchase for $141 million, crediting a previously accrued $107 million mortgage balance toward the price, which reduced its upfront funding requirement. The land is zoned for roughly 232,500 square feet of buildable space as-of-right, giving the company significant development optionality once the existing structures are cleared.
To support its expansion efforts and maintain liquidity, Vornado also shored up its financial footing by extending maturities on more than $2 billion of financing. It pushed the maturity of its $1.105 billion revolving credit facility from December 2027 to February 2031, and extended an unsecured term loan, upsizing it to $850 million to the same date. Vornado also upsized and extended another $1 billion revolving facility due in April 2029.
By stretching out debt maturities, Vornado reduces short-term refinancing risk and preserves flexibility for development and leasing decisions in a still-evolving office market. This financial strategy supports a measured pace of deployment while balancing capital needs across its portfolio.
Wrapping Up on VNO
Vornado’s recent actions reflect a measured strategy focused on strengthening its portfolio while keeping its finances flexible. The purchase of a well-located Plaza District development site adds meaningful long-term potential, giving the company the ability to shape future projects in one of Midtown Manhattan’s most supply-constrained areas. At the same time, extending debt maturities supports liquidity and eases near-term balance-sheet pressure, allowing management to remain patient as market conditions evolve.
Vornado continues to concentrate on high-quality office assets in select, high-barrier markets such as New York, Chicago, and San Francisco. Demand for modern, amenity-rich office space is supporting leasing momentum, with 3.7 million square feet leased during the first nine months of 2025. This activity underpins expectations for New York office occupancy to climb into the low-90% range over the next year.
While shares of this Zacks Rank #3 (Hold) company have lost 1.7% over the past month, narrower than the industry’s decline of 2.1%, analysts have raised 2025 FFO per share estimates marginally over the past two months to $2.34.
The Zacks Consensus Estimate for Prologis’ 2025 FFO per share is pegged at $5.80, which indicates year-over-year growth of 4.32%.
The Zacks Consensus Estimate for First Industrial Realty Trust’s 2025 FFO per share stands at $2.96, which indicates an increase of 11.70% from the year-ago period.
Note: Anything related to earnings presented in this write-up represents 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
How Vornado Is Expanding in Manhattan While Strengthening Liquidity
Key Takeaways
Vornado Realty Trust (VNO - Free Report) has bolstered its Manhattan strategy with the acquisition of 3 East 54th Street, a demolition-ready development site covering 18,400 square feet in the prestigious Plaza District between Fifth and Madison Avenues. The property sits adjacent to the iconic St. Regis Hotel and nearby Upper Fifth Avenue retail assets that Vornado already owns, offering a strategic anchor in one of New York City’s most valuable commercial corridors.
Vornado completed the purchase for $141 million, crediting a previously accrued $107 million mortgage balance toward the price, which reduced its upfront funding requirement. The land is zoned for roughly 232,500 square feet of buildable space as-of-right, giving the company significant development optionality once the existing structures are cleared.
To support its expansion efforts and maintain liquidity, Vornado also shored up its financial footing by extending maturities on more than $2 billion of financing. It pushed the maturity of its $1.105 billion revolving credit facility from December 2027 to February 2031, and extended an unsecured term loan, upsizing it to $850 million to the same date. Vornado also upsized and extended another $1 billion revolving facility due in April 2029.
By stretching out debt maturities, Vornado reduces short-term refinancing risk and preserves flexibility for development and leasing decisions in a still-evolving office market. This financial strategy supports a measured pace of deployment while balancing capital needs across its portfolio.
Wrapping Up on VNO
Vornado’s recent actions reflect a measured strategy focused on strengthening its portfolio while keeping its finances flexible. The purchase of a well-located Plaza District development site adds meaningful long-term potential, giving the company the ability to shape future projects in one of Midtown Manhattan’s most supply-constrained areas. At the same time, extending debt maturities supports liquidity and eases near-term balance-sheet pressure, allowing management to remain patient as market conditions evolve.
Vornado continues to concentrate on high-quality office assets in select, high-barrier markets such as New York, Chicago, and San Francisco. Demand for modern, amenity-rich office space is supporting leasing momentum, with 3.7 million square feet leased during the first nine months of 2025. This activity underpins expectations for New York office occupancy to climb into the low-90% range over the next year.
While shares of this Zacks Rank #3 (Hold) company have lost 1.7% over the past month, narrower than the industry’s decline of 2.1%, analysts have raised 2025 FFO per share estimates marginally over the past two months to $2.34.
Image Source: Zacks Investment Research
Stocks to Consider
Some better-ranked stocks from the broader REIT sector are Prologis (PLD - Free Report) and First Industrial Realty Trust (FR - Free Report) . Both Prologis and First Industrial Realty Trust carry a Zacks Rank of 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 Prologis’ 2025 FFO per share is pegged at $5.80, which indicates year-over-year growth of 4.32%.
The Zacks Consensus Estimate for First Industrial Realty Trust’s 2025 FFO per share stands at $2.96, which indicates an increase of 11.70% from the year-ago period.
Note: Anything related to earnings presented in this write-up represents FFO, a widely used metric to gauge the performance of REITs.