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Vornado's Q2 FFO Beat Estimates, Same-Store NOI Rises Y/Y
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Key Takeaways
{\"0\":\"Vornado posts Q2 adjusted FFO per share of $0.56, beating estimates but down 1.8% year over year.\",\"1\":\" Same-store NOI rises with gains across New York, THE MART, and 555 California Street portfolios.\",\"2\":\"Q2 leasing includes 1.48M sq ft in NY offices, 57K sq ft in NY retail, and 127K sq ft at THE MART. \"}
Vornado Realty Trust’s (VNO - Free Report) second-quarter 2025 funds from operations (FFO) plus assumed conversions, on an adjusted basis, were 56 cents per share, which beat the Zacks Consensus Estimate of 53 cents. However, the figure declined 1.8% year over year.
Results displayed year-over-year growth in total same-store net operating income (NOI) year over year. Also, Vornado witnessed decent leasing activity during the quarter.
Total revenues were $441.4 million in the reported quarter, which missed the Zacks Consensus Estimate of $455.4 million. On a year-over-year basis, revenues decreased nearly 2%.
VNO’s Q2 in Detail
In the reported quarter, total same-store NOI (at share) came in at $260.8 million compared with $247.4 million in the prior-year quarter. The metrics for the New York, THE MART and 555 California Street portfolios increased 1.8%, 57.7% and 3.1%, respectively, from the prior-year period.
During the quarter, in the New York office portfolio, 1,479,000 square feet of office space (1,414,000 square feet at share) was leased for an initial rent of $101.44 per square foot and a weighted average lease term of 6.8 years. The tenant improvements and leasing commissions were $13.11 per square foot per annum or 12.9% of the initial rent.
In the New York retail portfolio, 57,000 square feet were leased (48,000 square feet at share) at an initial rent of $96.77 per square foot and a weighted average lease term of 8.1 years. The tenant improvements and leasing commissions were $5.80 per square foot per annum or 6% of the initial rent.
At THE MART, 127,000 square feet of space (all at share) was leased for an initial rent of $50.87 per square foot and a weighted average lease term of 5.6 years. The tenant improvements and leasing commissions were $9.12 per square foot per annum or 17.9% of the initial rent.
Vornado ended the quarter with occupancy in the total New York portfolio at 85.2%, down 310 basis points (bps) year over year. Occupancy in THE MART was 78.2%, up 130 bps year over year. Occupancy in 555 California Street was 92.3%, down 220 bps year over year.
VNO’s Portfolio Activity
In the second quarter of 2025, a joint venture, in which the company has a 55% interest, entered into an agreement to sell 512 West 22nd Street, a 173,000 square foot office building, for $205 million.
In the same period, a joint venture, in which the company owns a 50% interest, completed the sale of the 49 West 57th Street commercial condominium.
VNO’s Balance Sheet
Vornado exited the second quarter of 2025 with cash and cash equivalents of $1.2 billion, up from $568.9 million as of March 31, 2025.
Cousins Properties (CUZ - Free Report) reported second-quarter 2025 FFO per share of 70 cents, in line with the Zacks Consensus Estimate. The figure increased 2.9% on a year-over-year basis.
CUZ experienced healthy new and expansion leasing activity as well as a decline in rental property operating expenses in the quarter. However, the weighted average occupancy decreased and interest expenses increased, affecting the results.
Boston Properties Inc.’s (BXP - Free Report) second-quarter 2025 FFO per share of $1.71 surpassed the Zacks Consensus Estimate of $1.67. However, the reported figure fell 3.4% year over year.
BXP’s quarterly results reflect better-than-anticipated revenues on healthy leasing activity. However, lower occupancy and higher interest expenses during the quarter marred its year-over-year FFO per share growth.
Note: Anything related to earnings presented in this write-up represents FFO, a widely used metric to gauge the performance of REITs.
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Vornado's Q2 FFO Beat Estimates, Same-Store NOI Rises Y/Y
Key Takeaways
Vornado Realty Trust’s (VNO - Free Report) second-quarter 2025 funds from operations (FFO) plus assumed conversions, on an adjusted basis, were 56 cents per share, which beat the Zacks Consensus Estimate of 53 cents. However, the figure declined 1.8% year over year.
Results displayed year-over-year growth in total same-store net operating income (NOI) year over year. Also, Vornado witnessed decent leasing activity during the quarter.
Total revenues were $441.4 million in the reported quarter, which missed the Zacks Consensus Estimate of $455.4 million. On a year-over-year basis, revenues decreased nearly 2%.
VNO’s Q2 in Detail
In the reported quarter, total same-store NOI (at share) came in at $260.8 million compared with $247.4 million in the prior-year quarter. The metrics for the New York, THE MART and 555 California Street portfolios increased 1.8%, 57.7% and 3.1%, respectively, from the prior-year period.
During the quarter, in the New York office portfolio, 1,479,000 square feet of office space (1,414,000 square feet at share) was leased for an initial rent of $101.44 per square foot and a weighted average lease term of 6.8 years. The tenant improvements and leasing commissions were $13.11 per square foot per annum or 12.9% of the initial rent.
In the New York retail portfolio, 57,000 square feet were leased (48,000 square feet at share) at an initial rent of $96.77 per square foot and a weighted average lease term of 8.1 years. The tenant improvements and leasing commissions were $5.80 per square foot per annum or 6% of the initial rent.
At THE MART, 127,000 square feet of space (all at share) was leased for an initial rent of $50.87 per square foot and a weighted average lease term of 5.6 years. The tenant improvements and leasing commissions were $9.12 per square foot per annum or 17.9% of the initial rent.
Vornado ended the quarter with occupancy in the total New York portfolio at 85.2%, down 310 basis points (bps) year over year. Occupancy in THE MART was 78.2%, up 130 bps year over year. Occupancy in 555 California Street was 92.3%, down 220 bps year over year.
VNO’s Portfolio Activity
In the second quarter of 2025, a joint venture, in which the company has a 55% interest, entered into an agreement to sell 512 West 22nd Street, a 173,000 square foot office building, for $205 million.
In the same period, a joint venture, in which the company owns a 50% interest, completed the sale of the 49 West 57th Street commercial condominium.
VNO’s Balance Sheet
Vornado exited the second quarter of 2025 with cash and cash equivalents of $1.2 billion, up from $568.9 million as of March 31, 2025.
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 second-quarter 2025 FFO per share of 70 cents, in line with the Zacks Consensus Estimate. The figure increased 2.9% on a year-over-year basis.
CUZ experienced healthy new and expansion leasing activity as well as a decline in rental property operating expenses in the quarter. However, the weighted average occupancy decreased and interest expenses increased, affecting the results.
Boston Properties Inc.’s (BXP - Free Report) second-quarter 2025 FFO per share of $1.71 surpassed the Zacks Consensus Estimate of $1.67. However, the reported figure fell 3.4% year over year.
BXP’s quarterly results reflect better-than-anticipated revenues on healthy leasing activity. However, lower occupancy and higher interest expenses during the quarter marred its year-over-year FFO per share growth.
Note: Anything related to earnings presented in this write-up represents FFO, a widely used metric to gauge the performance of REITs.