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Total revenues of $459.11 million edged down 0.5% year over year but beat the consensus mark by 3.57%.
Results displayed year-over-year growth in same-store net operating income (NOI) and occupancy for the New York and THE MART portfolios. The company witnessed decent leasing activities in the New York and THE MART portfolios.
VNO’s Q1 in Detail
In the reported quarter, total same-store NOI (at share) came in at $258.9 million compared with $243.9 million in the prior-year quarter. The metrics for the New York portfolio increased 8.9%, and THE MART portfolio rose marginally from the prior-year period. However, the same decreased 21.5% for 555 California Street.
During the quarter, in the New York office portfolio, 311,000 square feet of office space (243,000 square feet at share) was leased at an initial rent of $102.50 per square foot, with a weighted average lease term of 8.7 years. The tenant improvements and leasing commissions were $16.22 per square foot per annum or 15.8% of the initial rent.
In the New York retail portfolio, 25,000 square feet were leased (13,000 square feet at share) at an initial rent of $564.51 per square foot and a weighted average lease term of 12.4 years. The tenant improvements and leasing commissions were $10.29 per square foot per annum or 1.9% of the initial rent.
At THE MART, 19,000 square feet of space (all at share) was leased for an initial rent of $70.20 per square foot and a weighted average lease term of 3.3 years. The tenant improvements and leasing commissions were $8.70 per square foot per annum or 12.4% of the initial rent.
In the 555 California Street portfolio, 96,000 square feet of space (67,000 square feet at share) was leased at an initial rent of $151.94 per square foot, with a weighted average lease term of 9.5 years. The tenant improvements and leasing commissions were $18.57 per square foot per annum or 12.2% of the initial rent.
Vornado ended the quarter with occupancy in the total New York portfolio at 90.3%, up 680 basis points (bps) year over year. Occupancy in THE MART was 80%, up 180 bps year over year. Occupancy in 555 California Street was 86.7%, down 560 bps year over year.
VNO’s Revenue Mix Shows Fee Income Lift
Rental revenues were $399.18 million versus $404.76 million a year ago, reflecting modest pressure within core property revenues.
The softness was more than counterbalanced by fee and other income rising to $59.92 million from $56.82 million, supported by higher Building Maintenance Services (“BMS”) cleaning fees and other income. The mix shift helped keep total revenues relatively steady despite the year-over-year dip.
VNO’s Portfolio Actions Include Deals and a Pending Sale
VNO agreed on April 28, 2026 to buy a 49% interest in Park Avenue Plaza at a $1.1 billion valuation ($950 per square foot), with closing expected in the second quarter of 2026.
Separately, Vornado acquired 3 East 54th Street on Jan. 7, 2026 for $141 million and plans to demolish the existing buildings at the site. On dispositions, Alexander’s (32.4%-owned) agreed to sell Rego Park I for $235.5 million, with closing expected by the third quarter of 2026. Upon completion, Vornado expects to recognize an approximate $44 million share of the net gain.
Vornado’s Capital Allocation Highlights Buybacks
Vornado repurchased 2.75 million common shares for $79.84 million during the quarter at an average price of $29.08 per share, underscoring a continued emphasis on returning capital.
After quarter-end, the board authorized a new repurchase program of up to $300 million. The company also disclosed remaining capacity under its prior $200 million program after cumulative repurchases since 2023, providing additional context around near-term capital deployment flexibility.
VNO’s Liquidity Improves After Debt and Refinancing Moves
VNO ended the quarter with $1.08 billion of cash and cash equivalents and $130 million of restricted cash. Including $1.39 billion available under its revolving credit facilities, total liquidity was $2.60 billion as of March 31, 2026.
On the financing front, the company completed a $500 million issuance of 5.75% senior unsecured notes due 2033 and refinanced/upsized portions of its revolving credit facilities and unsecured term loan early in 2026. It also detailed property-level activity, including the refinancing of One Park Avenue and a new $400 million mortgage loan tied to 350 Park Avenue’s development plan, reflecting active balance sheet management against a higher-rate backdrop.
Cousins Properties (CUZ - Free Report) reported first-quarter 2026 FFO per share of 73 cents, topping the Zacks Consensus Estimate of 71 cents. The metric slipped 1.4% year over year. Results reflected healthy leasing activity in the quarter.
Boston Properties Inc.’s (BXP - Free Report) first-quarter 2026 FFO per share of $1.59 edged past the Zacks Consensus Estimate of $1.58. Still, FFO per share slipped 3.1% from $1.64 a year ago. BXP’s quarterly results reflected healthy leasing activity and higher occupancy.
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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VNO Q1 FFO Meets Estimates, Revenues Top, Same-Store NOI Grows
Key Takeaways
Vornado Realty Trust (VNO - Free Report) posted first-quarter 2026 funds from operations (FFO), as adjusted, of $0.52 per share, in line with the Zacks Consensus Estimate. This compares unfavorably to the FFO of $0.63 a year ago.
Total revenues of $459.11 million edged down 0.5% year over year but beat the consensus mark by 3.57%.
Results displayed year-over-year growth in same-store net operating income (NOI) and occupancy for the New York and THE MART portfolios. The company witnessed decent leasing activities in the New York and THE MART portfolios.
VNO’s Q1 in Detail
In the reported quarter, total same-store NOI (at share) came in at $258.9 million compared with $243.9 million in the prior-year quarter. The metrics for the New York portfolio increased 8.9%, and THE MART portfolio rose marginally from the prior-year period. However, the same decreased 21.5% for 555 California Street.
During the quarter, in the New York office portfolio, 311,000 square feet of office space (243,000 square feet at share) was leased at an initial rent of $102.50 per square foot, with a weighted average lease term of 8.7 years. The tenant improvements and leasing commissions were $16.22 per square foot per annum or 15.8% of the initial rent.
In the New York retail portfolio, 25,000 square feet were leased (13,000 square feet at share) at an initial rent of $564.51 per square foot and a weighted average lease term of 12.4 years. The tenant improvements and leasing commissions were $10.29 per square foot per annum or 1.9% of the initial rent.
At THE MART, 19,000 square feet of space (all at share) was leased for an initial rent of $70.20 per square foot and a weighted average lease term of 3.3 years. The tenant improvements and leasing commissions were $8.70 per square foot per annum or 12.4% of the initial rent.
In the 555 California Street portfolio, 96,000 square feet of space (67,000 square feet at share) was leased at an initial rent of $151.94 per square foot, with a weighted average lease term of 9.5 years. The tenant improvements and leasing commissions were $18.57 per square foot per annum or 12.2% of the initial rent.
Vornado ended the quarter with occupancy in the total New York portfolio at 90.3%, up 680 basis points (bps) year over year. Occupancy in THE MART was 80%, up 180 bps year over year. Occupancy in 555 California Street was 86.7%, down 560 bps year over year.
VNO’s Revenue Mix Shows Fee Income Lift
Rental revenues were $399.18 million versus $404.76 million a year ago, reflecting modest pressure within core property revenues.
The softness was more than counterbalanced by fee and other income rising to $59.92 million from $56.82 million, supported by higher Building Maintenance Services (“BMS”) cleaning fees and other income. The mix shift helped keep total revenues relatively steady despite the year-over-year dip.
VNO’s Portfolio Actions Include Deals and a Pending Sale
VNO agreed on April 28, 2026 to buy a 49% interest in Park Avenue Plaza at a $1.1 billion valuation ($950 per square foot), with closing expected in the second quarter of 2026.
Separately, Vornado acquired 3 East 54th Street on Jan. 7, 2026 for $141 million and plans to demolish the existing buildings at the site. On dispositions, Alexander’s (32.4%-owned) agreed to sell Rego Park I for $235.5 million, with closing expected by the third quarter of 2026. Upon completion, Vornado expects to recognize an approximate $44 million share of the net gain.
Vornado’s Capital Allocation Highlights Buybacks
Vornado repurchased 2.75 million common shares for $79.84 million during the quarter at an average price of $29.08 per share, underscoring a continued emphasis on returning capital.
After quarter-end, the board authorized a new repurchase program of up to $300 million. The company also disclosed remaining capacity under its prior $200 million program after cumulative repurchases since 2023, providing additional context around near-term capital deployment flexibility.
VNO’s Liquidity Improves After Debt and Refinancing Moves
VNO ended the quarter with $1.08 billion of cash and cash equivalents and $130 million of restricted cash. Including $1.39 billion available under its revolving credit facilities, total liquidity was $2.60 billion as of March 31, 2026.
On the financing front, the company completed a $500 million issuance of 5.75% senior unsecured notes due 2033 and refinanced/upsized portions of its revolving credit facilities and unsecured term loan early in 2026. It also detailed property-level activity, including the refinancing of One Park Avenue and a new $400 million mortgage loan tied to 350 Park Avenue’s development plan, reflecting active balance sheet management against a higher-rate backdrop.
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 first-quarter 2026 FFO per share of 73 cents, topping the Zacks Consensus Estimate of 71 cents. The metric slipped 1.4% year over year. Results reflected healthy leasing activity in the quarter.
Boston Properties Inc.’s (BXP - Free Report) first-quarter 2026 FFO per share of $1.59 edged past the Zacks Consensus Estimate of $1.58. Still, FFO per share slipped 3.1% from $1.64 a year ago. BXP’s quarterly results reflected healthy leasing activity and higher occupancy.
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.