Vornado Realty Trust’s VNO first-quarter 2025 funds from operations (FFO) plus assumed conversions, on an adjusted basis, were 63 cents per share, which beat the Zacks Consensus Estimate of 52 cents. Moreover, the figure jumped 14.5% year over year.

The results displayed growth in total same-store net operating income (NOI) year over year. Also, Vornado witnessed decent leasing activity during the quarter.

Total revenues were $461.6 million in the reported quarter, which beat the Zacks Consensus Estimate of $447.9 million. On a year-over-year basis, revenues gained nearly 5.8%.

VNO’s Q1 in Detail

In the reported quarter, total same-store NOI (at share) came in at $293.3 million compared with $269.1 million in the prior-year quarter. The metric for the New York, THE MART and 555 California Street portfolios increased 8.7%, 9.9% and 7.9%, respectively, from the prior-year period.

During the quarter, in the New York office portfolio, 709,000 square feet of office space (685,000 square feet at share) was leased for an initial rent of $95.53 per square foot and a weighted average lease term of 14.7 years. The tenant improvements and leasing commissions were $11.49 per square foot per annum or 12% of the initial rent.

In the New York retail portfolio, 25,000 square feet were leased (18,000 square feet at share) at an initial rent of $222.20 per square foot and a weighted average lease term of 14.3 years. The tenant improvements and leasing commissions were $26.41 per square foot per annum or 11.9% of the initial rent.

At THE MART, 83,000 square feet of space (all at share) was leased for an initial rent of $51.33 per square foot and a weighted average lease term of 8 years. The tenant improvements and leasing commissions were $11.35 per square foot per annum or 22.1% of the initial rent.

At 555 California Street, 222,000 square feet of office space (155,000 square feet at share) was leased for an initial rent of $120.65 per square foot and a weighted average lease term of 13.1 years. The tenant improvements and leasing commissions were $17.54 per square foot per annum or 14.5% of the initial rent.

Vornado ended the quarter with occupancy in the total New York portfolio at 83.5%, down 470 basis points (bps) year over year. Occupancy in THE MART was 78.2%, up 60 bps year over year. Occupancy in 555 California Street was 92.3%, down 220 bps year over year.

VNO’s Portfolio Activity

In the first quarter of 2025, Vornado disposed of two condominium units and ancillary amenities at 220 Central Park South for net proceeds of $24.7 million.

Story Continues

VNO’s Balance Sheet

Vornado exited the first quarter of 2025 with cash and cash equivalents of $568.9 million, down from $733.9 million as of Dec. 31, 2024.

VNO’s Zacks Rank

Vornado currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Vornado Realty Trust Price, Consensus and EPS SurpriseVornado Realty Trust Price, Consensus and EPS Surprise

Vornado Realty Trust price-consensus-eps-surprise-chart | Vornado Realty Trust Quote

Performance of Other Office REITs

BXP Inc.’s BXP first-quarter 2025 FFO per share of $1.64 missed the Zacks Consensus Estimate of $1.65. BXP’s quarterly results reflected better-than-anticipated revenues on healthy leasing activity. However, lower occupancy during the quarter marred its year-over-year FFO per share growth. (See the Zacks Earnings Calendar to stay ahead of market-making news.)

SL Green Realty Corp. SLG reported a first-quarter 2025 FFO per share of $1.40, which surpassed the Zacks Consensus Estimate of $1.27. Results reflected improved average rental rates on the signed Manhattan office leases in the period and higher same-store cash NOI. However, elevated interest expenses undermined the results to some extent.

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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