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Vornado Realty Trust (VNO)
:VNO
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Vornado Realty (VNO) AI Stock Analysis

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Vornado Realty

(NYSE:VNO)

Rating:63Neutral
Price Target:
$41.00
â–²(5.81%Upside)
Vornado Realty's overall score is driven by a strong earnings call performance and solid financial recovery. However, the technical analysis and valuation indicate potential risks with mixed market signals and a high P/E ratio. The company's resilience and strategic moves in the earnings call are significant positives, while technical and valuation concerns warrant cautious optimism.
Positive Factors
Financial Position
The sale of a portion of the U.S. flagship store at 666 Fifth Avenue resulted in net proceeds of $342mn, enhancing the company's financial position.
Leasing Performance
The company leased 709k SF of NY office space, showing a strong leasing performance compared to the previous quarter.
Rental Income Potential
Cash leasing spreads in NY Office/Retail increased significantly, indicating improved rental income potential.
Negative Factors
Lease Payment Increase
Prior to the ground lease's renewal, the lease payment was just $2.5M, but VNO guided to an increase to $26M due to the estimated increased land value, exhibiting the pitfalls of this structure.
Occupancy Levels
Total occupancy decreased to 83.5%, reflecting a decline compared to previous periods.

Vornado Realty (VNO) vs. SPDR S&P 500 ETF (SPY)

Vornado Realty Business Overview & Revenue Model

Company DescriptionVornado Realty Trust (VNO) is a leading real estate investment trust (REIT) engaged primarily in the ownership, management, and development of office and retail properties. Headquartered in New York City, the company focuses its operations in major urban markets, particularly in Manhattan. Vornado's portfolio encompasses high-quality office buildings and premier retail spaces, serving a diverse range of tenants, including corporations, retailers, and other enterprises.
How the Company Makes MoneyVornado Realty Trust generates revenue primarily through leasing its vast portfolio of office and retail properties to tenants. The company earns rental income, which constitutes the majority of its revenue, from long-term leases with various tenants, ensuring a steady cash flow. Additionally, Vornado engages in property development and management services, further augmenting its earnings. The company's strategic focus on high-demand urban locations, particularly in Manhattan, allows it to command premium rental rates. Furthermore, Vornado's revenue is bolstered by strategic partnerships and joint ventures that enable it to expand its reach and optimize its portfolio value. The REIT structure also allows Vornado to distribute a significant portion of its taxable income as dividends to shareholders, aligning with its business model and investor expectations.

Vornado Realty Financial Statement Overview

Summary
Vornado Realty demonstrates a commendable financial recovery with improved profitability metrics and a stable balance sheet. The cash flow position is healthy, though reliant on consistent income levels. Leverage is within industry norms, but profitability could be enhanced to deliver better returns to shareholders.
Income Statement
72
Positive
Vornado Realty shows a strong recovery in profitability with a TTM net profit margin of 9.17%, up from previous years, reflecting effective cost management. The EBIT and EBITDA margins are also robust, at 15.58% and 55.15% respectively, indicating efficient operations. Despite a modest revenue growth of 1.41% TTM, the company has improved its gross profit margin significantly by eliminating cost of goods sold, which now reflects total revenue.
Balance Sheet
65
Positive
Vornado Realty's balance sheet indicates a stable equity position with a debt-to-equity ratio of 1.60, suggesting moderate leverage typical for the REIT industry. The equity ratio remains strong at 34.06%, showing a solid asset base funded by equity. However, the return on equity is relatively low at 3.13% TTM, indicating limited profitability relative to shareholder investment.
Cash Flow
68
Positive
The company maintains a healthy operating cash flow to net income ratio of 3.36, reflecting strong cash generation relative to earnings. Free cash flow remains positive with a growth rate of 3.82%, supporting financial flexibility. However, reliance on operating cash flow highlights potential vulnerabilities if income fluctuates.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue1.79B1.81B1.80B1.59B1.53B
Gross Profit1.79B906.00M926.08M791.89M738.88M
EBITDA880.61M845.61M423.31M792.48M228.26M
Net Income70.39M105.49M-382.61M176.00M-461.85M
Balance Sheet
Total Assets16.00B16.19B16.49B17.27B16.22B
Cash, Cash Equivalents and Short-Term Investments733.95M997.00M1.36B1.76B1.62B
Total Debt8.99B8.98B9.13B8.99B7.80B
Total Liabilities9.83B9.84B9.98B10.06B8.67B
Stockholders Equity5.16B5.51B5.84B6.24B6.53B
Cash Flow
Free Cash Flow537.72M648.15M795.94M758.81M29.19M
Operating Cash Flow537.72M648.15M798.94M761.81M424.24M
Investing Cash Flow-597.37M-128.79M-906.86M-532.35M-87.80M
Financing Cash Flow-252.32M-278.94M-801.27M-29.48M-213.20M

Vornado Realty Technical Analysis

Technical Analysis Sentiment
Positive
Last Price38.75
Price Trends
50DMA
38.75
Negative
100DMA
37.87
Positive
200DMA
39.69
Negative
Market Momentum
MACD
-0.17
Negative
RSI
51.84
Neutral
STOCH
71.82
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For VNO, the sentiment is Positive. The current price of 38.75 is above the 20-day moving average (MA) of 38.65, below the 50-day MA of 38.75, and below the 200-day MA of 39.69, indicating a neutral trend. The MACD of -0.17 indicates Negative momentum. The RSI at 51.84 is Neutral, neither overbought nor oversold. The STOCH value of 71.82 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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

Overall Rating
UnderperformOutperform
Sector (54)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
KRKRC
75
Outperform
$8.80B22.163.69%5.81%1.11%-3.07%
ARARE
72
Outperform
$13.60B103.200.73%6.72%5.13%-28.94%
CUCUZ
66
Neutral
$4.90B87.101.15%4.39%10.93%-31.07%
SLSLG
65
Neutral
$4.84B663.10-0.13%4.86%14.28%94.75%
VNVNO
63
Neutral
$8.06B74.123.06%1.92%0.63%258.59%
BXBXP
61
Neutral
$12.39B732.74-0.10%5.50%3.74%-102.51%
54
Neutral
$1.19B3.690.13%6.34%-2.13%-128.06%
* Real Estate Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
VNO
Vornado Realty
38.75
9.43
32.16%
ARE
Alexandria Equities
78.61
-41.98
-34.81%
BXP
Boston Properties
71.23
5.56
8.47%
CUZ
Cousins Properties
29.16
5.14
21.40%
KRC
Kilroy Realty
37.13
3.09
9.08%
SLG
SL Green Realty
63.60
3.28
5.44%

Vornado Realty Corporate Events

Shareholder Meetings
Vornado Realty Holds Annual Shareholder Meeting
Neutral
May 22, 2025

On May 22, 2025, Vornado Realty Trust held its annual meeting of shareholders, where approximately 94% of the shares were represented. During the meeting, three key proposals were voted on: the election of ten nominees to the Board of Trustees, the ratification of Deloitte & Touche LLP as the independent public accounting firm for 2025, and a non-binding advisory resolution on executive compensation. The outcomes of these votes are expected to influence the company’s governance and operational decisions in the coming year.

The most recent analyst rating on (VNO) stock is a Sell with a $35.00 price target. To see the full list of analyst forecasts on Vornado Realty stock, see the VNO Stock Forecast page.

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.Date of analysis: Jul 11, 2025