In This Article:
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.