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Vornado Realty Trust VNO

Morningstar Rating
$25.47 −0.06 (0.24%)
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Company Report

Vornado Earnings: Leasing Volumes and NOI Hold Up Relatively Well for Manhattan Office Portfolio

No-moat-rated Vornado Realty reported middling fourth-quarter results as adjusted funds from operations were reported at $123.8 million or $0.63 per share, which was around 11% lower than the $139.0 million or $0.72 per share FFO reported in the fourth quarter of the previous year. The decline in FFO on a year-over-year basis can be attributed to a $4.8 million impact from accrual adjustments recorded in fourth quarter 2022 related to changes in the tax-assessed value of the Mart, $6.4 million from higher development fee pool bonus expense, $6.0 million from higher stock compensation, and a $2.9 million from the impact of properties sold. The important thing to note is that the results from the core business were flat and the entire decrease in FFO on a year-over-year basis was driven by increased general and administrative expenses and lower FFO from sold properties. We think that the current results are decent as the company's core Manhattan office portfolio has been holding up relatively well.

Price vs Fair Value

VNO is trading at a 11% discount.
Price
$25.47
Fair Value
$99.60
Uncertainty
Very High
1-Star Price
$89.68
5-Star Price
$81.76
Economic Moat
Lyfj
Capital Allocation
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Bulls Say, Bears Say

Bulls

Vornado’s Manhattan focus allows it to access one of the most vibrant business districts in the world. The company’s high-quality office buildings with good amenities should benefit from the flight to quality trend.

Bears

Employees are still hesitant in returning to the office as physical building occupancy rates remain at approximately 50% of the prepandemic level.

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News

Trading Information

Previous Close Price
$25.53
Day Range
$25.1025.77
52-Week Range
$12.3132.21
Bid/Ask
$25.13 / $25.74
Market Cap
$4.85 Bil
Volume/Avg
1.2 Mil / 2.8 Mil

Key Statistics

Price/Earnings (Normalized)
93.23
Price/Sales
2.62
Dividend Yield (Trailing)
2.65%
Dividend Yield (Forward)
Total Yield
3.25%

Company Profile

Vornado owns and has an ownership interest in Class A office and retail properties highly concentrated in Manhattan, with additional properties in San Francisco and Chicago. It operates as a real estate investment trust.
Sector
Real Estate
Industry
REIT - Office
Stock Style Box
Small Core
Total Number of Employees
2,935

Competitors

Valuation

Metric
VNO
KRC
BXP
Price/Earnings (Normalized)
93.2318.8724.31
Price/Book Value
1.090.731.69
Price/Sales
2.623.533.04
Price/Cash Flow
7.056.626.74
Price/Earnings
VNO
KRC
BXP

Financial Strength

Metric
VNO
KRC
BXP
Quick Ratio
1.741.843.20
Current Ratio
2.031.863.26
Interest Coverage
1.042.891.44
Quick Ratio
VNO
KRC
BXP

Profitability

Metric
VNO
KRC
BXP
Return on Assets (Normalized)
0.31%2.41%1.34%
Return on Equity (Normalized)
1.13%4.92%5.43%
Return on Invested Capital (Normalized)
1.74%3.27%3.05%
Return on Assets
VNO
KRC
BXP
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