Vornado Realty (0LR2) AI Stock Analysis

0 Followers

Vornado Realty

(LSE:0LR2)

Rating:―N/A

Action:N/A

Date:―

No summary available

Positive Factors

Leasing strengthHigh occupancy and strong leasing activity support recurring rental income and reduce near-term vacancy risk. Continued tenant demand for quality New York space should help Vornado sustain rent growth, renewals, and operating performance over the next several quarters.

Negative Factors

Thin profitabilityNear-breakeven net income leaves limited protection if rents weaken, expenses rise, or financing costs remain elevated. Although operating margins are stronger, the gap between operating performance and bottom-line earnings reduces confidence in stable shareholder returns.

Vornado Realty (0LR2) vs. iShares MSCI United Kingdom ETF (EWC)

Market Cap: $6.78B
Dividend Yield: 2.14%
Average Volume (3M): 324
Price to Earnings (P/E): -130.0
Beta (1Y): 1.09
Revenue Growth: 1.55%
EPS Growth: -106.41%
Country: UK
Employees: 3,145
Sector: Real Estate
Sector Strength: 65
Industry: REIT - Office

Vornado Realty Business Overview & Revenue Model

Company Description

Vornado's property holdings are predominantly focused on the crucial New York City market, complemented by a top-tier asset in both Chicago and San Francisco. The company is also at the forefront of the real estate sector regarding its sustainability...

Vornado Realty Earnings Call Summary

Earnings Call Date:Nov 01, 2026(Q3-2026)|% Change Since:-1.18%|Next Earnings Date:Feb 07, 2027

Earnings Call SentimentPositive

The call was strongly positive, led by 14% comparable FFO growth, accelerating New York office rents and leasing spreads, higher occupancy, substantial signed-lease revenue, strong performance at PENN1, PENN2, and 555 California Street, and progress on major development projects. Management also described robust tenant demand, funded capital projects, ample liquidity, and expected leverage improvement. The principal negatives were higher interest expense and rates, near-term income taken offline for redevelopment and move-outs, elevated capital expenditures, slower investment sales activity, and the remaining speculative leasing exposure at 350 Park Avenue. Highlights significantly outweighed the lowlights.

Positive Updates

Comparable FFO Growth and Earnings Beat

Third-quarter comparable FFO was $0.65 per share, compared with $0.57 in last year's third quarter, an increase of $0.08 or 14%, and $0.02 ahead of analyst consensus. The increase was primarily due to rent commencements, primarily at PENN1 and PENN2, the Park Avenue Plaza acquisition, and higher signage revenue.

Negative Updates

Higher Interest Expense and Rates

Higher net interest expense partially offset third-quarter FFO growth, largely due to the higher rate on the 2033 senior bonds versus the retired bonds. Management said the higher interest-rate environment could have an approximately $0.10 impact next year, and Vornado's bonds were trading at spreads about 30 to 40 basis points higher than in April.

Company Guidance

Management said full year 2026 comparable FFO will be higher than 2025, with the current quarter a reasonable run rate through 2027, notwithstanding the additional impact of taking income offline for the 34th and 7th retail redevelopment and from a higher interest rate environment; the $0.10 impact next year from higher rates was cited, while the $0.10 to $0.15 run rate continues and significant growth remains intact beyond 2027, with significant additional growth expected in 2028 and beyond. Strong same store growth numbers are expected to continue through next year, with New York office in 2027 at or above the current 11.9% GAAP and 8.7% cash same store NOI growth, while retail is “a little bit lumpy.” Manhattan office leasing for full year 2026 should be about 2.4 million square feet, signed leases represent $204 million of revenue flowing through the next 5 or so quarters, 623 Fifth Avenue is expected to deliver to tenants in the fourth quarter of 27, apartment units are expected to be delivered late 28 or early 29, and leverage is expected to trend down to probably the low 7s by the end of next year beginning of following year.

Vornado Realty Risk Analysis

Vornado Realty disclosed 42 risk factors in its most recent earnings report. Vornado Realty reported the most risks in the "Finance & Corporate" category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added

0 New Risks

Vornado Realty Peers Comparison

Overall Rating

UnderperformOutperform

Sector (65)

Financial Indicators

GB:0LR2 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	65Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
DEI	60Neutral	$1.65B	-86.86	-1.12%	7.18%	1.83%	-206.53%
BXP	58Neutral	$11.12B	19.69	10.32%	4.24%	2.67%	―
KRC	56Neutral	$4.23B	151.32	0.54%	5.71%	-3.61%	-91.01%
SLG	56Neutral	$3.77B	-26.11	-3.53%	4.40%	8.70%	-340433.33%
HPP	43Neutral	$547.57M	-1.19	-18.64%	―	2.54%	54.94%

* Real Estate Sector Average

Performance Comparison

GB:0LR2 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
GB:0LR2	Vornado Realty Trust	35.28	0.06	0.18%
BXP	BXP	65.24	-3.89	-5.63%
DEI	Douglas Emmett	10.42	-1.11	-9.60%
HPP	Hudson Pacific Properties	8.76	-6.99	-44.38%
KRC	Kilroy Realty	36.26	-4.53	-11.11%
SLG	SL Green Realty Corp	51.55	1.74	3.49%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Vornado Realty AI Stock Analysis