Analyst John Kim of BMO Capital maintained a Buy rating on Vornado Realty (VNO – Research Report), retaining the price target of $46.00.
John Kim’s rating is based on a combination of factors that highlight Vornado Realty’s strong financial performance and strategic leasing activities. The company reported a significant increase in core funds from operations per share, surpassing market expectations, which is a positive indicator of its financial health. Additionally, Vornado’s leasing activities in New York showed robust growth, with a notable increase in office leasing activity and improved cash leasing spreads for both office and retail spaces.
Despite a decline in occupancy rates, largely attributed to the inclusion of a new property with lower occupancy, the overall outlook remains positive. The anticipated improvement in occupancy, driven by new leases such as the one with NYU at 770 Broadway, is expected to bolster future performance. These factors, combined with favorable lease resets and strategic property transactions, underpin John Kim’s Buy rating for Vornado Realty.