Vornado Realty's Q4 FFO Misses Estimates, Revenues Decrease Y/Y

Vornado Realty Trust’s VNO  fourth-quarter 2025 funds from operations (FFO) plus assumed conversions, on an adjusted basis, were 55 cents per share, which missed the Zacks Consensus Estimate of 57 cents. Moreover, the figure decreased 9.8% year over year.

Results displayed a year-over-year decline in same-store net operating income (NOI) and occupancy for the 555 California Street portfolio. The company witnessed decent leasing activities in the New York and THE MART portfolios.

Total revenues were $453.7 million in the reported quarter, which surpassed the Zacks Consensus Estimate of $434.8 million. On a year-over-year basis, revenues decreased marginally.

For 2025, FFO plus assumed conversions, as adjusted per share, came in at $2.32, higher than the prior-year tally of $2.26. However, it missed the Zacks Consensus Estimate of $2.33. Total revenues came in at $1.81 billion, up by 1.3% from the previous year, beating the consensus mark of $1.77 billion.

In January 2026, VNO acquired 3 East 54th Street, a demolition-ready asset situated on 18,400 square feet of land, for $141 million.

VNO’s Q4 in Detail

In the reported quarter, total same-store NOI (at share) came in at $260.6 million compared with $248.1 million in the prior-year quarter. The metrics for the New York and THE MART portfolios increased 2.2% and 141.1%, respectively, from the prior-year period. However, the same decreased 7.1% for 555 California Street.

During the quarter, in the New York office portfolio, 960,000 square feet of office space (869,000 square feet at share) was leased for an initial rent of $95.36 per square foot and a weighted average lease term of 9.9 years. The tenant improvements and leasing commissions were $14.74 per square foot per annum or 15.5% of the initial rent.

In the New York retail portfolio, 21,000 square feet were leased (14,000 square feet at share) at an initial rent of $273.56 per square foot and a weighted average lease term of 8.2 years. The tenant improvements and leasing commissions were $11.69 per square foot per annum or 4.3% of the initial rent.

At THE MART, 26,000 square feet of space (all at share) was leased for an initial rent of $62.73 per square foot and a weighted average lease term of 4.4 years. The tenant improvements and leasing commissions were $3.25 per square foot per annum or 5.2% of the initial rent.

Vornado ended the quarter with occupancy in the total New York portfolio at 90.0%, up 240 basis points (bps) year over year. Occupancy in THE MART was 81.5%, up 140 bps year over year. Occupancy in 555 California Street was 88.9%, down 310 bps year over year.

VNO’s Balance Sheet

Vornado exited the fourth quarter of 2025 with cash and cash equivalents of $840.9 million, down from $1.01 billion as of Sept. 30, 2025.

VNO’s Zacks Rank

Vornado currently carries a Zacks Rank #4 (Sell).

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 reported fourth-quarter 2025 FFO per share of 71 cents, in line with the Zacks Consensus Estimate. The figure increased 2.9% on a year-over-year basis.

CUZ experienced healthy leasing activity in the quarter. The weighted average occupancy decreased, while interest expenses increased and marred the growth tempo.

Boston Properties Inc.’s BXP fourth-quarter 2025 FFO per share of $1.76 missed the Zacks Consensus Estimate of $1.80. Moreover, the reported figure fell 1.7% year over year.

BXP’s quarterly results reflect higher expenses impacting the performance, though revenues improved year over year.

Note: Anything related to earnings presented in this write-up represents funds from operations (FFO), a widely used metric to gauge the performance of REITs.

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This article originally published on Zacks Investment Research (zacks.com).

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