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Vornado Realty
(NYSE:VNO)
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Rating:62Neutral
Price Target:
$36.00
▼(-3.69% Downside)
Action:Reiterated
Date:08/04/26
The score is driven primarily by mixed financial fundamentals (strong TTM revenue momentum but volatile earnings quality, historically high leverage, and sharply weaker TTM free cash flow). Offsetting this, technicals are supportive with price above major moving averages and moderate positive momentum. Valuation appears reasonable (P/E ~10.3) with a modest dividend yield, while the latest earnings call adds a meaningful positive boost due to FFO outperformance, improving occupancy/leasing trends, and upbeat growth expectations tempered by interest expense and major development execution/timing risk.
Positive Factors
New York leasing and occupancy momentum
Rising occupancy and a substantial leasing pipeline support recurring rental growth in Vornado’s core New York portfolio. Improving utilization, major tenant commitments, and additional signed leases can expand net operating income as vacant space is absorbed over the coming quarters.
Negative Factors
Historically elevated leverage and rising interest expense
Historically elevated leverage leaves an office REIT more exposed to refinancing conditions and interest costs, while higher net interest expense already reduces the benefit of operating gains. This can constrain distributions, acquisitions, and redevelopment funding over the next several quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
New York leasing and occupancy momentum
Rising occupancy and a substantial leasing pipeline support recurring rental growth in Vornado’s core New York portfolio. Improving utilization, major tenant commitments, and additional signed leases can expand net operating income as vacant space is absorbed over the coming quarters.
Read all positive factors
Vornado Realty (VNO) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$6.87B
Dividend Yield2.19%
Average Volume (3M)1.32M
Price to Earnings (P/E)1093.9
Beta (1Y)1.24
Revenue Growth1.37%
EPS Growth-99.27%
CountryUS
Employees3,145
SectorReal Estate
Sector Strength53
IndustryREIT - Office
Share Statistics
EPS (TTM)0.03
Shares Outstanding186,720,540
10 Day Avg. Volume1,388,108
30 Day Avg. Volume1,324,009
Financial Highlights & Ratios
PEG Ratio<0.01
Price to Book (P/B)1.07
Price to Sales (P/S)3.52
P/FCF Ratio5.07
Enterprise Value/Market Cap2.49
Enterprise Value/Revenue9.35
Enterprise Value/Gross Profit21.95
Enterprise Value/Ebitda18.32
Forecast
1Y Price Target
$39.08Price Target Upside4.56% Upside
Rating ConsensusHold
Number of Analyst Covering12
EPS Forecast (FY)-0.28
Revenue Forecast (FY)$1.88B
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 sustainabil...
How the Company Makes Money
Vornado makes money primarily by generating recurring rental revenue from leasing space in its commercial properties. The largest component of revenue typically comes from base rent paid by office and retail tenants under multi-year leases; these ...
Vornado Realty Earnings Call Summary
Earnings Call Date:Aug 03, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 02, 2026
Earnings Call Sentiment Positive
The call presented a majority of positive operational and financial developments: a clear beat to FFO, strong same-store NOI growth, accelerating Manhattan leasing with rising starting rents, a large leasing pipeline (including a 1 million sq ft Citadel commitment), accretive acquisitions (Park Avenue Plaza, 623 Fifth Avenue), and robust liquidity and buybacks. Offsetting concerns include higher net interest expense, lag between signed leases and GAAP earnings recognition, capital intensity and timing risk for major development (350 Park Avenue), and a material stock NAV discount. Overall, the positives (strong leasing momentum, NOI gains, pipeline, liquidity and accretive deals) materially outweigh the near-term lowlights and execution/timing risks.Positive Updates
Comparable FFO Beat and YoY Improvement
Comparable FFO of $0.67 for Q2 2026, beating analyst consensus by $0.10 (17.5%). This is an increase of $0.11 versus Q2 2025's $0.56 (≈19.6% YoY increase in reported FFO per share).
Negative Updates
Higher Net Interest Expense
Management noted higher net interest expense partially offsetting FFO gains this quarter, a headwind as the company grows earnings and executes development/acquisition plans.
Read all updates
Q2-2026 Updates
Positive
Negative
Comparable FFO Beat and YoY Improvement
Comparable FFO of $0.67 for Q2 2026, beating analyst consensus by $0.10 (17.5%). This is an increase of $0.11 versus Q2 2025's $0.56 (≈19.6% YoY increase in reported FFO per share).
Read all positive updates
Company Guidance
Management provided soft guidance that full‑year 2026 comparable FFO will be higher than 2025 and that Q2 comparable FFO of $0.67 (up $0.11 YoY; beat consensus by $0.10 or 17.5%) is a reasonable run‑rate for the rest of the year, with “significant” further earnings growth expected in 2027 (previously discussed ~$0.40 uplift, some of which is already flowing into 2026); they forecast Q3 mark‑to‑markets >20% and reported H1 leasing of 978,000 sq ft (659,000 sq ft Manhattan office at $105/sq ft average starting rent; Q2: 29 office deals totaling 348,000 sq ft at $107/sq ft with MTM +7.7% GAAP/+5.0% cash; H1 MTM +9.5% GAAP/+7.1% cash), signed‑but‑not‑commenced rents of ~$180M (≈$150M+ of FFO), New York office occupancy up 60 bps to 92.2% (from an 84.4% trough in Q1‑2025) and expected to exceed 93% by year‑end, a pipeline >2.2M sq ft (including 1.0M sq ft Citadel at 350 Park and >500k in the PENN District), New York same‑store NOI +13.7% GAAP/+11.9% cash (office) and retail +7.3% GAAP/+5.7% cash, liquidity of $2.0B (cash $789M + $1.2B undrawn), a debt ratio in the “7s” with potential to go sub‑7, ongoing buybacks (1.8M shares at $29.92 this quarter; 8M shares at $26.61 average since 2023), planned asset sales, and a $3.3B construction loan in place with a planned JV closing (350 Park) in September.Vornado Realty Financial Statement Overview
Summary
Income Statement
56
Neutral
Balance Sheet
47
Neutral
Cash Flow
52
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.83B | 1.81B | 1.79B | 1.81B | 1.80B | 1.59B |
| Gross Profit | 778.96M | 1.81B | 1.79B | 906.00M | 926.08M | 791.89M |
| EBITDA | 933.05M | 1.77B | 880.61M | 845.61M | 423.31M | 840.50M |
| Net Income | 67.88M | 904.96M | 70.39M | 105.49M | -346.50M | 176.00M |
Balance Sheet | ||||||
| Total Assets | 15.61B | 15.52B | 16.00B | 16.19B | 16.49B | 17.27B |
| Cash, Cash Equivalents and Short-Term Investments | 675.35M | 840.85M | 733.95M | 997.00M | 1.36B | 1.76B |
| Total Debt | 9.06B | 7.89B | 8.99B | 8.98B | 9.13B | 8.99B |
| Total Liabilities | 8.91B | 8.72B | 9.83B | 9.84B | 9.98B | 10.06B |
| Stockholders Equity | 5.79B | 5.99B | 5.16B | 5.51B | 5.84B | 6.24B |
Cash Flow | ||||||
| Free Cash Flow | 270.56M | 1.26B | 537.72M | 648.15M | 798.94M | 761.81M |
| Operating Cash Flow | 390.89M | 1.26B | 537.72M | 648.15M | 798.94M | 761.81M |
| Investing Cash Flow | -908.29M | 115.51M | -597.37M | -128.79M | -906.86M | -532.35M |
| Financing Cash Flow | -56.97M | -1.35B | -252.32M | -278.94M | -801.27M | -29.48M |
Vornado Realty Technical Analysis
Negative
37.38
Price Trends
36.45
Negative
37.03
Negative
33.35
Positive
Market Momentum
-0.76
Negative
39.92
Neutral
44.84
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For VNO, the sentiment is Negative. The current price of 37.38 is above the 20-day moving average (MA) of 34.21, above the 50-day MA of 36.45, and above the 200-day MA of 33.35, indicating a neutral trend. The MACD of -0.76 indicates Negative momentum. The RSI at 39.92 is Neutral, neither overbought nor oversold. The STOCH value of 44.84 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for VNO.
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
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
62 Neutral | $6.87B | 1,093.85 | 1.14% | 2.19% | 1.37% | -99.27% | |
62 Neutral | $4.09B | 24.17 | 3.17% | 6.21% | -3.76% | -22.82% | |
61 Neutral | $3.72B | -19.04 | -4.61% | 4.86% | 7.60% | -387.48% | |
59 Neutral | $10.39B | 32.02 | 5.80% | 4.70% | 1.88% | 7630.99% | |
53 Neutral | $675.72M | -1.38 | -18.64% | 2.06% | 2.54% | 54.94% | |
50 Neutral | $1.65B | -72.25 | -1.21% | 7.70% | 0.78% | -167.70% |
* Real Estate Sector Average
VNO
Vornado Realty
33.80
-5.13
-13.18%
BXP
BXP
59.55
-7.83
-11.62%
DEI
Douglas Emmett
9.87
-2.86
-22.44%
HPP
Hudson Pacific Properties
12.18
-6.09
-33.33%
KRC
Kilroy Realty
34.80
-3.26
-8.57%
SLG
SL Green Realty
48.74
-4.44
-8.34%
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.