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Vornado Announces First Quarter 2025 Financial Results

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Vornado Realty Trust (NYSE: VNO) reported strong Q1 2025 financial results with net income of $86.8M ($0.43 per share), compared to a net loss of $9M in Q1 2024. The improvement was driven by a $76.2M gain from selling part of 666 Fifth to UNIQLO and a $17.2M reversal of PENN 1 rent expense. FFO reached $135M ($0.67 per share), up from $104.1M ($0.53 per share) year-over-year. Key developments include: - NYU master lease at 770 Broadway for 1.07M sq ft, with $935M prepaid lease payment - Sale of UNIQLO portion at 666 Fifth Avenue for $350M - New $450M financing at 1535 Broadway at 6.90% interest - Total occupancy at 83.5% in New York portfolio - Leasing activity showed positive rent spreads with 9.5% GAAP increase for office space

Vornado Realty Trust (NYSE: VNO) ha riportato solidi risultati finanziari nel primo trimestre 2025 con un utile netto di 86,8 milioni di dollari (0,43 dollari per azione), rispetto a una perdita netta di 9 milioni nel primo trimestre 2024. Il miglioramento è stato favorito da un guadagno di 76,2 milioni di dollari derivante dalla vendita di una parte del 666 Fifth a UNIQLO e da una rettifica di 17,2 milioni di dollari sulle spese di affitto di PENN 1. L'FFO ha raggiunto 135 milioni di dollari (0,67 dollari per azione), in aumento rispetto ai 104,1 milioni (0,53 dollari per azione) dell'anno precedente. Sviluppi chiave includono: - Contratto di locazione master con NYU a 770 Broadway per 1,07 milioni di piedi quadrati, con un pagamento anticipato di 935 milioni di dollari - Vendita della porzione UNIQLO a 666 Fifth Avenue per 350 milioni di dollari - Nuovo finanziamento da 450 milioni di dollari a 1535 Broadway con interesse al 6,90% - Occupazione totale al 83,5% nel portafoglio di New York - L'attività di locazione ha mostrato incrementi positivi degli affitti con un aumento GAAP del 9,5% per gli spazi ufficio
Vornado Realty Trust (NYSE: VNO) reportó sólidos resultados financieros en el primer trimestre de 2025 con un ingreso neto de 86,8 millones de dólares (0,43 dólares por acción), en comparación con una pérdida neta de 9 millones en el primer trimestre de 2024. La mejora se debió a una ganancia de 76,2 millones de dólares por la venta de parte del 666 Fifth a UNIQLO y a una reversión de 17,2 millones de dólares en gastos de renta de PENN 1. El FFO alcanzó 135 millones de dólares (0,67 dólares por acción), frente a 104,1 millones (0,53 dólares por acción) del año anterior. Desarrollos clave incluyen: - Contrato de arrendamiento maestro con NYU en 770 Broadway por 1,07 millones de pies cuadrados, con un pago anticipado de 935 millones de dólares - Venta de la porción de UNIQLO en 666 Fifth Avenue por 350 millones de dólares - Nuevo financiamiento de 450 millones de dólares en 1535 Broadway con una tasa de interés del 6,90% - Ocupación total del 83,5% en la cartera de Nueva York - La actividad de arrendamiento mostró aumentos positivos en las rentas con un incremento GAAP del 9,5% para espacios de oficina
Vornado Realty Trust (NYSE: VNO)는 2025년 1분기에 순이익 8,680만 달러(주당 0.43달러)를 기록하며 2024년 1분기 900만 달러 순손실에서 크게 개선된 실적을 보고했습니다. 이러한 개선은 666 Fifth의 일부를 UNIQLO에 매각하여 7,620만 달러의 이익과 PENN 1 임대료 비용 1,720만 달러 환입에 힘입은 것입니다. FFO는 전년 동기 대비 1억 3500만 달러(주당 0.67달러)로, 1억 410만 달러(주당 0.53달러)에서 증가했습니다. 주요 내용은 다음과 같습니다: - 770 Broadway에 위치한 1.07백만 평방피트 규모의 NYU 마스터 리스, 9억 3500만 달러 선불 임대료 - 666 Fifth Avenue UNIQLO 구역 매각, 3억 5000만 달러 - 1535 Broadway에서 6.90% 이자율로 4억 5천만 달러 신규 금융 조달 - 뉴욕 포트폴리오 총 임대율 83.5% - 임대 활동에서 사무실 공간에 대해 9.5% GAAP 임대료 상승을 기록
Vornado Realty Trust (NYSE : VNO) a annoncé de solides résultats financiers pour le premier trimestre 2025 avec un revenu net de 86,8 millions de dollars (0,43 dollar par action), contre une perte nette de 9 millions au premier trimestre 2024. Cette amélioration a été portée par un gain de 76,2 millions de dollars suite à la vente d'une partie du 666 Fifth à UNIQLO et une reprise de 17,2 millions de dollars des charges locatives de PENN 1. Le FFO a atteint 135 millions de dollars (0,67 dollar par action), en hausse par rapport à 104,1 millions (0,53 dollar par action) l'année précédente. Les faits marquants incluent : - Bail principal avec NYU au 770 Broadway pour 1,07 million de pieds carrés, avec un paiement de loyer prépayé de 935 millions de dollars - Vente de la partie UNIQLO au 666 Fifth Avenue pour 350 millions de dollars - Nouveau financement de 450 millions de dollars au 1535 Broadway avec un taux d'intérêt de 6,90 % - Taux d'occupation total de 83,5 % dans le portefeuille new-yorkais - L'activité locative a montré des augmentations positives des loyers avec une hausse GAAP de 9,5 % pour les espaces de bureaux
Vornado Realty Trust (NYSE: VNO) meldete starke Finanzergebnisse für das erste Quartal 2025 mit einem Nettoeinkommen von 86,8 Mio. USD (0,43 USD je Aktie), verglichen mit einem Nettoverlust von 9 Mio. USD im ersten Quartal 2024. Die Verbesserung wurde durch einen Gewinn von 76,2 Mio. USD aus dem Verkauf eines Teils von 666 Fifth an UNIQLO und eine Rückstellung von 17,2 Mio. USD für PENN 1 Mietkosten verursacht. Das FFO erreichte 135 Mio. USD (0,67 USD je Aktie), gegenüber 104,1 Mio. USD (0,53 USD je Aktie) im Vorjahreszeitraum. Wesentliche Entwicklungen umfassen: - NYU-Mastermietvertrag für 770 Broadway mit 1,07 Mio. Quadratfuß und einer Vorauszahlung von 935 Mio. USD - Verkauf des UNIQLO-Anteils am 666 Fifth Avenue für 350 Mio. USD - Neue Finanzierung über 450 Mio. USD für 1535 Broadway mit 6,90 % Zinsen - Gesamtbelegung von 83,5 % im New Yorker Portfolio - Die Vermietungsaktivität zeigte positive Mietsteigerungen mit einem GAAP-Anstieg von 9,5 % für Büroflächen
Positive
  • Net income increased significantly to $86.8M from a $9M loss year-over-year
  • Major $935M prepaid lease deal with NYU for 770 Broadway
  • $350M sale to UNIQLO generated $76.2M gain
  • FFO per share increased 26.4% to $0.67 from $0.53 year-over-year
  • Positive rent spreads with 9.5% GAAP increase for office space
Negative
  • Overall occupancy remains challenged at 83.5% in New York portfolio
  • Lower interest income impacted results by $5.6M
  • High tenant improvement costs at $168.88 per square foot for office space
  • Retail occupancy particularly weak at 72.2%

Insights

Vornado's Q1 shows significant profit improvement driven by one-time gains and a strategic 70-year NYU lease, with modest FFO growth.

Vornado's Q1 2025 performance shows a dramatic improvement in net income to $86.8 million ($0.43/share) from a net loss of $9.0 million in Q1 2024. However, this transformation stems largely from two one-time events: a $76.2 million gain from selling part of 666 Fifth Avenue to UNIQLO and a $17.2 million reversal of previously accrued PENN 1 rent expenses.

Looking at the more reliable FFO metric adjusted for non-recurring items, Vornado posted $126.2 million ($0.63/share), representing a 14.5% year-over-year increase from $0.55/share. This improvement reflects both the positive impact of the PENN 1 ground rent reset determination and modest operational gains.

The 70-year master lease with NYU at 770 Broadway stands out as a transformative transaction. The deal brought in an upfront payment of $935 million plus annual payments of approximately $9.3 million, enabling Vornado to repay a $700 million mortgage loan. This significantly enhances the company's liquidity position while securing a very long-term income stream.

Occupancy metrics present a mixed picture: New York office space stands at 84.4% (improving to 87.4% with the NYU lease), retail space lags at 72.2%, while 555 California Street shows strength at 92.3%. The company's leasing activity demonstrates some pricing power, with positive rent spreads across most segments.

Same-store NOI increased 3.5% year-over-year, with particularly strong performance at THE MART (9.7%) and 555 California Street (5.2%), indicating solid underlying property performance despite challenges in certain market segments.

NEW YORK, May 05, 2025 (GLOBE NEWSWIRE) --

Vornado Realty Trust (NYSE: VNO) reported today:

Quarter Ended March 31, 2025 Financial Results

NET INCOME attributable to common shareholders for the quarter ended March 31, 2025 was $86,842,000, or $0.43 per diluted share, compared to a net loss attributable to common shareholders of $9,034,000, or $0.05 per diluted share, for the prior year's quarter. The increase is primarily due to the $76,162,000 net gain recognized upon the disposition of a portion of the 666 Fifth condominium to UNIQLO, and the $17,240,000 reversal of PENN 1 rent expense previously accrued following the April 2025 rent reset determination.

FUNDS FROM OPERATIONS ("FFO") attributable to common shareholders plus assumed conversions (non-GAAP) for the quarter ended March 31, 2025 was $135,039,000, or $0.67 per diluted share, compared to $104,129,000, or $0.53 per diluted share, for the prior year's quarter. Adjusting for the items that impact period-to-period comparability listed in the table below, FFO attributable to common shareholders plus assumed conversions, as adjusted (non-GAAP) for the quarter ended March 31, 2025 was $126,245,000, or $0.63 per diluted share, and $108,847,000, or $0.55 per diluted share, for the prior year's quarter.

The following table reconciles FFO attributable to common shareholders plus assumed conversions (non-GAAP) to FFO attributable to common shareholders plus assumed conversions, as adjusted (non-GAAP):

(Amounts in thousands, except per share amounts)For the Three Months Ended
March 31,
  2025   2024 
FFO attributable to common shareholders plus assumed conversions (non-GAAP)(1)$135,039  $104,129 
Per diluted share (non-GAAP)$0.67  $0.53 
    
Certain (income) expense items that impact FFO attributable to common shareholders plus assumed conversions:   
After-tax net gain on sale of 220 Central Park South ("220 CPS") condominium units and ancillary amenities$(11,028) $— 
Deferred tax liability on our investment in the Farley Building (held through a taxable REIT subsidiary) 3,205   4,134 
Other (1,735)  1,009 
  (9,558)  5,143 
Noncontrolling interests' share of above adjustments on a dilutive basis 764   (425)
Total of certain (income) expense items that impact FFO attributable to common shareholders plus assumed conversions, net$(8,794) $4,718 
Per diluted share (non-GAAP)$(0.04) $0.02 
    
FFO attributable to common shareholders plus assumed conversions, as adjusted (non-GAAP)$126,245  $108,847 
Per diluted share (non-GAAP)$0.63  $0.55 


__________________________________________
(1)See page 9 for a reconciliation of net income (loss) attributable to common shareholders to FFO attributable to common shareholders plus assumed conversions (non-GAAP) for the three months ended March 31, 2025 and 2024.


FFO, as Adjusted Bridge - Q1 2025 vs. Q1 2024

The following table bridges our FFO attributable to common shareholders plus assumed conversions, as adjusted (non-GAAP) for the three months ended March 31, 2024 to FFO attributable to common shareholders plus assumed conversions, as adjusted (non-GAAP) for the three months ended March 31, 2025:

(Amounts in millions, except per share amounts)FFO, as Adjusted
 Amount Per Share
FFO attributable to common shareholders plus assumed conversions, as adjusted (non-GAAP) for the three months ended March 31, 2024$108.8  $0.55
    
Increase / (decrease) in FFO, as adjusted due to:   
Impact of PENN 1 ground rent reset determination (including a $17.2 reversal of rent expense that was accrued in prior periods) 20.0   
Lower interest income (5.6)  
Variable businesses (primarily signage) 2.4   
Rent commencements, net of lease expirations and other tenant related items 2.1   
Other, net (0.5)  
  18.4   
Noncontrolling interests' share of above items and impact of assumed conversions of convertible securities (1.0)  
Net increase 17.4   0.08
    
FFO attributable to common shareholders plus assumed conversions, as adjusted (non-GAAP) for the three months ended March 31, 2025$126.2  $0.63


See page 9 for a reconciliation of net income (loss) attributable to common shareholders to FFO attributable to common shareholders plus assumed conversions (non-GAAP) for the three months ended March 31, 2025 and 2024. Reconciliations of FFO attributable to common shareholders plus assumed conversions to FFO attributable to common shareholders plus assumed conversions, as adjusted are provided on the previous page.

770 Broadway

On May 5, 2025, we completed a master lease with New York University (“NYU”) to lease 1,076,000 square feet at 770 Broadway, on an “as is”, triple net basis for a 70-year lease term. Under the terms of the master lease, a rental agreement under Section 467 of the Internal Revenue Code, NYU made a prepaid lease payment of $935,000,000 and will also make annual lease payments of approximately $9,300,000 during the lease term. NYU has an option to purchase the leased premises in both 2055 and at the end of the lease term in 2095. NYU will assume the existing office leases and related tenant income at the property.

We used a portion of the prepaid lease payment to repay the $700,000,000 mortgage loan which previously encumbered the property.

We will retain the 92,000 square feet retail condominium leased to Wegmans.

PENN 1 Ground Rent Reset Determination

On April 22, 2025, an arbitration panel (the “Panel”) appointed to determine the ground rent payable by Vornado’s subsidiary for the PENN 1 land parcel for the 25-year period beginning June 17, 2023 determined that the annual rent payable will be $15,000,000.

Further, litigation is currently pending between the parties in New York County Supreme Court relating to the matter. To date, the court denied the Vornado subsidiary’s motion to dismiss the action and Vornado’s subsidiary has filed a notice of appeal. The Panel’s decision provides that if the fee owner prevails in a final judgment in the litigation, the annual rent for the 25-year term will be $20,220,000, retroactive to June 17, 2023.

We were accruing $26,205,000 per annum of ground rent based on a previous estimate and therefore, in connection with the Panel’s determination, we reversed $17,240,000 of previously accrued rent expense during the three months ended March 31, 2025. Additionally, commencing in the first quarter of 2025, we are now paying based on the $15,000,000 annual rent.

Dispositions

666 Fifth Avenue (Fifth Avenue and Times Square JV)

On January 8, 2025, the Fifth Avenue and Times Square JV completed the sale to UNIQLO of the portion of its U.S. flagship store at 666 Fifth Avenue owned by the joint venture for $350,000,000 and realized net proceeds of $342,000,000. The net proceeds were used to partially redeem Vornado’s preferred equity on the asset. The joint venture continues to own 23,832 square feet of retail space (7,416 square feet at grade) at 666 Fifth Avenue consisting of the Abercrombie & Fitch and Tissot stores. We recognized a financial statement gain of $76,162,000, which is included in “income from partially owned entities” on our consolidated statements of income.

220 Central Park South

During the three months ended March 31, 2025, we closed on the sale of two condominium units and ancillary amenities at 220 CPS for net proceeds of $24,713,000, resulting in a financial statement net gain of $13,576,000 which is included in "net gains on disposition of wholly owned and partially owned assets" on our consolidated statements of income. In connection with these sales, $2,548,000 of income tax expense was recognized on our consolidated statements of income. Two units remain unsold.

Financing Activity

Senior Unsecured Notes due 2025

We repaid our $450,000,000 3.50% senior unsecured notes on their January 15, 2025 maturity date.

1535 Broadway (Fifth Avenue and Times Square JV)

On April 14, 2025, the Fifth Avenue and Times Square JV completed a $450,000,000 financing of 1535 Broadway. The interest-only non-recourse loan bears interest at a fixed rate of 6.90% and matures in May 2030. After transaction costs and reserves, $407,000,000 of the net proceeds from the financing were used to partially redeem Vornado’s Fifth Avenue and Times Square JV preferred equity. In connection with the financing, the annual coupon for the remaining preferred equity interest in 1535 Broadway was increased to 5.75% from 4.75% through the maturity of the new loan and then will be based on a formulaic rate.

Sustainability Margin Adjustment

In April 2025, we qualified for a sustainability margin adjustment on our unsecured term loan and revolving credit facilities by achieving certain KPI metrics, which will reduce our interest rate by 0.05% and 0.04%, respectively.

Leasing Activity

The leasing activity and related statistics in the table below are based on leases signed during the period and are not intended to coincide with the commencement of rental revenue in accordance with accounting principles generally accepted in the United States of America (“GAAP”). Second generation relet space represents square footage that has not been vacant for more than nine months and tenant improvements and leasing commissions are based on our share of square feet leased during the period.

(Square feet in thousands)New York   555 California 
 Office Retail THE MART Street
Three Months Ended March 31, 2025           
Total square feet leased709  25  83  222 
Our share of square feet leased:685  18  83  155 
Initial rent(1)$95.53  $222.20  $51.33  $120.65 
Weighted average lease term (years)14.7  14.3  8.0  13.1 
Second generation relet space:           
Square feet254  10  42  155 
GAAP basis:           
Straight-line rent(2)$80.23  $139.99  $51.80  $132.08 
Prior straight-line rent$73.25  $108.59  $54.68  $110.28 
Percentage increase (decrease)9.5% 28.9% (5.3)% 19.8%
Cash basis (non-GAAP):           
Initial rent(1)$84.72  $139.40  $51.67  $121.04 
Prior escalated rent$79.56  $112.57  $60.43  $117.37 
Percentage increase (decrease)6.5% 23.8% (14.5)% 3.1%
Tenant improvements and leasing commissions:           
Per square foot$168.88  $377.61  $90.82  $229.71 
Per square foot per annum$11.49  $26.41  $11.35  $17.54 
Percentage of initial rent12.0% 11.9% 22.1% 14.5%


__________________________________________
(1)Represents the cash basis weighted average starting rent per square foot, which is generally indicative of market rents. Most leases include free rent and periodic step-ups in rent which are not included in the initial cash basis rent per square foot but are included in the GAAP basis straight-line rent per square foot.
(2)Represents the GAAP basis weighted average rent per square foot that is recognized over the term of the respective leases and includes the effect of free rent and periodic step-ups in rent.


Occupancy

(At Vornado's share)New York   555 California
 Total Office(1) Retail THE MART  Street
Occupancy as of March 31, 202583.5% 84.4% 72.2% 78.2% 92.3%


__________________________________________
(1)Includes the impact of PENN 2 being placed into service during the first quarter of 2025. Giving effect to the master lease with NYU at 770 Broadway completed in the second quarter of 2025, occupancy would be 87.4%.


Same Store Net Operating Income ("NOI") (non-GAAP) At Share:Total New York THE
MART(3)		 555
California
Street
Same store NOI at share % increase (decrease)(1):       
Three months ended March 31, 2025 compared to March 31, 20243.5% 3.0%(2)9.7% 5.2%
Three months ended March 31, 2025 compared to December 31, 2024(1.5)% (6.3)%(2)160.8% 10.5%
        
Same store NOI at share - cash basis % increase (decrease)(1):       
Three months ended March 31, 2025 compared to March 31, 20240.9% (0.7)% 16.7% 7.1%
Three months ended March 31, 2025 compared to December 31, 2024(1.5)% (4.8)% 66.9% 0.8%


__________________________________________
(1)See pages 11 through 14 for same store NOI at share and same store NOI at share - cash basis reconciliations.
(2)Excludes the impact of the $17,240,000 reversal of previously accrued PENN 1 ground rent. See page 3 for further details.
(3)The three months ended December 31, 2024 includes a $4,560,000 write-off of a straight-line rent receivable due to the tenant being deemed uncollectible.


NOI At Share and NOI At Share - Cash Basis:

The elements of our New York and Other NOI at share and NOI at share - cash basis for the three months ended March 31, 2025 and 2024 and the three months ended December 31, 2024 are summarized below.

(Amounts in thousands)For the Three Months Ended
 March 31,  
 2025 2024 December 31, 2024
NOI at share:     
New York:     
Office(1)$        191,501 $        167,988 $        193,215
Retail46,115 47,466 48,238
Residential6,192 5,968 6,072
Alexander's9,509 11,707 9,515
Total New York253,317 233,129 257,040
Other:     
THE MART(2)15,916 14,486 6,168
555 California Street17,843 16,529 15,854
Other investments6,214 4,980 5,904
Total Other39,973 35,995 27,926
NOI at share$        293,290 $        269,124 $        284,966


NOI at share - cash basis:     
New York:     
Office(1)$167,457 $166,370 $181,438
Retail 43,727  43,873  44,130
Residential 5,848  5,690  5,750
Alexander's 10,538  14,861  10,615
Total New York 227,570  230,794  241,933
Other:     
THE MART 17,517  14,949  10,550
555 California Street 18,137  16,938  18,138
Other investments 6,147  4,932  5,967
Total Other 41,801  36,819  34,655
NOI at share - cash basis$269,371 $267,613 $276,588


__________________________________________
(1)Includes Building Maintenance Services NOI of $6,936, $7,217, and $6,895 for the three months ended March 31, 2025 and 2024 and December 31, 2024.
(2)The three months ended December 31, 2024 includes a $4,560 write-off of a straight-line rent receivable due to the tenant being deemed uncollectible.


Active Development/Redevelopment Summary as of March 31, 2025:

(Amounts in thousands, except square feet)
   (at Vornado’s share)    
New York segment:Property
Rentable
Sq. Ft.		 Budget Cash
Amount
Expended		  Remaining
Expenditures		 Stabilization
Year		 Projected
Incremental
Cash Yield
PENN District:            
PENN 21,815,000 $750,000 $708,267 $41,733 2026 10.2%
Districtwide ImprovementsN/A 100,000 75,189  24,811 N/A N/A
Total PENN District  850,000(1)783,456  66,544    
             
Sunset Pier 94 Studios (49.9% interest)266,000 125,000(2)66,551  58,449 2026 10.3%
             
Total Active Development Projects  $975,000 $850,007 $124,993    


__________________________________________
(1)Excluding debt and equity carry.
(2)Represents our 49.9% share of the $350,000 development budget, excluding the $40,000 value of our contributed leasehold interest and net of an estimated $9,000 for our share of development fees and reimbursement for overhead costs incurred by us. During 2024, we fully funded our $34,000 share of cash contributions.


There can be no assurance that the above projects will be completed, completed on schedule or within budget. In addition, there can be no assurance that the Company will be successful in leasing the properties on the expected schedule or at the assumed rental rates.

Conference Call and Audio Webcast
As previously announced, the Company will host a quarterly earnings conference call and an audio webcast on Tuesday, May 6, 2025 at 10:00 a.m. Eastern Time (ET). The conference call can be accessed by dialing 888-317-6003 (domestic) or 412-317-6061 (international) and entering the passcode 1149171. A live webcast of the conference call will be available on Vornado’s website at www.vno.com in the Investor Relations section and an online playback of the webcast will be available on the website following the conference call.

Contact

Thomas J. Sanelli

(212) 894-7000

Supplemental Data

Further details regarding results of operations, properties and tenants can be accessed at the Company’s website www.vno.com. Vornado Realty Trust is a fully - integrated equity real estate investment trust.

Certain statements contained herein may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are not guarantees of future performance. They represent our intentions, plans, expectations and beliefs and are subject to numerous assumptions, risks and uncertainties. Our future results, financial condition and business may differ materially from those expressed in these forward-looking statements. You can find many of these statements by looking for words such as "approximates," "believes," "expects," "anticipates," "estimates," "intends," "plans," "would," "may" or other similar expressions in this press release. We also note the following forward-looking statements: in the case of our development and redevelopment projects, the estimated completion date, estimated project cost, projected incremental cash yield, stabilization date and cost to complete; estimates of future capital expenditures, dividends to common and preferred shareholders and operating partnership distributions. For a discussion of factors that could materially affect the outcome of our forward-looking statements and our future results and financial condition, see “Risk Factors” in Part I, Item 1A, of our Annual Report on Form 10-K for the year ended December 31, 2024. Currently, some of the factors are interest rate fluctuations and the effects of inflation on our business, financial condition, results of operations, cash flows, operating performance and the effect that these factors have had and may continue to have on our tenants, the global, national, regional and local economies and financial markets and the real estate market in general.

VORNADO REALTY TRUST
CONSOLIDATED BALANCE SHEETS
 
(Amounts in thousands)As of   
 March 31, 2025 December 31, 2024 Increase
(Decrease)
ASSETS        
Real estate, at cost:        
Land$        2,434,209  $        2,434,209  $        — 
Buildings and improvements10,719,995  10,439,113  280,882 
Development costs and construction in progress879,601  1,097,395  (217,794)
Leasehold improvements and equipment111,983  120,915  (8,932)
Total14,145,788  14,091,632  54,156 
Less accumulated depreciation and amortization(4,105,413) (4,025,349) (80,064)
Real estate, net10,040,375  10,066,283  (25,908)
Right-of-use assets677,312  678,804  (1,492)
Cash, cash equivalents, and restricted cash        
Cash and cash equivalents568,861  733,947  (165,086)
Restricted cash238,027  215,672  22,355 
Total806,888  949,619  (142,731)
Tenant and other receivables70,920  58,853  12,067 
Investments in partially owned entities2,421,283  2,691,478  (270,195)
Receivable arising from the straight-lining of rents711,334  707,020  4,314 
Deferred leasing costs, net385,658  354,882  30,776 
Identified intangible assets, net116,280  118,215  (1,935)
Other assets369,182  373,454  (4,272)
Total assets$15,599,232  $15,998,608  $(399,376)
LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND EQUITY        
Liabilities:        
Mortgages payable, net$        5,674,519  $        5,676,014  $        (1,495)
Senior unsecured notes, net746,282  1,195,914  (449,632)
Unsecured term loan, net796,295  795,948  347 
Unsecured revolving credit facilities575,000  575,000  — 
Lease liabilities734,123  749,759  (15,636)
Accounts payable and accrued expenses387,898  374,013  13,885 
Deferred compensation plan111,144  114,580  (3,436)
Other liabilities345,778  345,511  267 
Total liabilities9,371,039  9,826,739  (455,700)
Redeemable noncontrolling interests738,224  834,658  (96,434)
Shareholders' equity5,314,118  5,158,242  155,876 
Noncontrolling interests in consolidated subsidiaries175,851  178,969  (3,118)
Total liabilities, redeemable noncontrolling interests and equity$15,599,232  $15,998,608  $(399,376)



VORNADO REALTY TRUST
OPERATING RESULTS
 
(Amounts in thousands, except per share amounts)For the Three Months Ended
March 31,
 2025 2024
Revenues$461,579  $436,375 
    
Net income (loss)$99,824  $(6,273)
Less net loss (income) attributable to noncontrolling interests in:   
Consolidated subsidiaries 10,433   11,982 
Operating Partnership (7,889)  786 
Net income attributable to Vornado 102,368   6,495 
Preferred share dividends (15,526)  (15,529)
Net income (loss) attributable to common shareholders$86,842  $(9,034)
    
Income (loss) per common share - basic:   
Net income (loss) per common share$0.45  $(0.05)
Weighted average shares outstanding 191,371   190,429 
    
Income (loss) per common share - diluted:   
Net income (loss) per common share$0.43  $(0.05)
Weighted average shares outstanding 200,735   190,429 
    
FFO attributable to common shareholders plus assumed conversions (non-GAAP)$135,039  $104,129 
Per diluted share (non-GAAP)$0.67  $0.53 
    
FFO attributable to common shareholders plus assumed conversions, as adjusted (non-GAAP)$126,245  $108,847 
Per diluted share (non-GAAP)$0.63  $0.55 
    
Weighted average shares used in determining FFO attributable to common shareholders plus assumed conversions per diluted share 200,784   196,481 


FFO is computed in accordance with the definition adopted by the Board of Governors of the National Association of Real Estate Investment Trusts (“NAREIT”). NAREIT defines FFO as GAAP net income or loss adjusted to exclude net gains from sales of certain real estate assets, impairment write-downs of certain real estate assets and investments in entities when the impairment is directly attributable to decreases in the value of depreciable real estate held by the entity, depreciation and amortization expense from real estate assets and other specified items, including the pro rata share of such adjustments of unconsolidated subsidiaries. FFO and FFO per diluted share are non-GAAP financial measures used by management, investors and analysts to facilitate meaningful comparisons of operating performance between periods and among our peers because it excludes the effect of real estate depreciation and amortization and net gains on sales, which are based on historical costs and implicitly assume that the value of real estate diminishes predictably over time, rather than fluctuating based on existing market conditions. FFO does not represent cash generated from operating activities and is not necessarily indicative of cash available to fund cash requirements and should not be considered as an alternative to net income as a performance measure or cash flow as a liquidity measure. FFO may not be comparable to similarly titled measures employed by other companies. In addition to FFO attributable to common shareholders plus assumed conversions, we also disclose FFO attributable to common shareholders plus assumed conversions, as adjusted. Although this non-GAAP measure clearly differs from NAREIT’s definition of FFO, we believe it provides a meaningful presentation of operating performance. Reconciliations of net income (loss) attributable to common shareholders to FFO attributable to common shareholders plus assumed conversions are provided on the following page. Reconciliations of FFO attributable to common shareholders plus assumed conversions to FFO attributable to common shareholders plus assumed conversions, as adjusted are provided on page 1 of this press release.

VORNADO REALTY TRUST
NON-GAAP RECONCILIATIONS
 
The following table reconciles net income (loss) attributable to common shareholders to FFO attributable to common shareholders plus assumed conversions:
 
(Amounts in thousands, except per share amounts)For the Three Months Ended
March 31,
 2025 2024
Net income (loss) attributable to common shareholders$86,842  $(9,034)
Per diluted share$0.43  $(0.05)
    
FFO adjustments:   
Depreciation and amortization of real property$104,257  $96,783 
Our share of partially owned entities:   
Net gain on sale of real estate (77,008)  — 
Depreciation and amortization of real property 24,525   26,163 
FFO adjustments, net 51,774   122,946 
Impact of assumed conversion of dilutive convertible securities 310   388 
Noncontrolling interests' share of above adjustments on a dilutive basis (3,887)  (10,171)
FFO attributable to common shareholders plus assumed conversions (non-GAAP)$135,039  $104,129 
Per diluted share$0.67  $0.53 
    
Reconciliation of weighted average shares outstanding:   
Weighted average common shares outstanding 191,371   190,429 
Effect of dilutive securities:   
Share-based payment awards 8,161   4,204 
Convertible securities 1,252   1,848 
Denominator for FFO per diluted share 200,784   196,481 


VORNADO REALTY TRUST
NON-GAAP RECONCILIATIONS - CONTINUED
 
Below is a reconciliation of net income (loss) to NOI at share and NOI at share - cash basis for the three months ended March 31, 2025 and 2024 and the three months ended December 31, 2024.
 
(Amounts in thousands)For the Three Months Ended
 March 31,
   
 2025 2024 December 31, 2024
Net income (loss)$        99,824  $        (6,273)  $        5,758 
Depreciation and amortization expense116,155  108,659  113,061 
General and administrative expense38,597  37,897  36,637 
Transaction related costs and other43  653  1,341 
Income from partially owned entities(96,977) (16,279) (30,007)
Interest and other investment income, net(8,261) (11,724) (11,348)
Interest and debt expense95,816  90,478  100,483 
Net gains on disposition of wholly owned and partially owned assets(15,551) —  — 
Income tax expense7,193  6,740  5,822 
NOI from partially owned entities67,111  70,369  73,270 
NOI attributable to noncontrolling interests in consolidated subsidiaries(10,660) (11,396) (10,051)
NOI at share293,290  269,124  284,966 
Non-cash adjustments for straight-line rents, amortization of acquired below-market leases, net, and other(23,919) (1,511) (8,378)
NOI at share - cash basis$        269,371  $        267,613  $        276,588 


NOI at share represents total revenues less operating expenses including our share of partially owned entities. NOI at share - cash basis represents NOI at share adjusted to exclude straight-line rental income and expense, amortization of acquired below and above market leases, accruals for ground rent resets yet to be determined, and other non-cash adjustments. We consider NOI at share to be the primary non-GAAP financial measure for making decisions and assessing the unlevered performance of our segments as it relates to the total return on assets as opposed to the levered return on equity. As properties are bought and sold based on NOI at share - cash basis, we utilize this measure to make investment decisions as well as to compare the performance of our assets to that of our peers. NOI at share and NOI at share - cash basis should not be considered alternatives to net income or cash flow from operations and may not be comparable to similarly titled measures employed by other companies.

VORNADO REALTY TRUST
NON-GAAP RECONCILIATIONS - CONTINUED

Same store NOI at share represents NOI at share from operations which are in service in both the current and prior year reporting periods. Same store NOI at share - cash basis is same store NOI at share adjusted to exclude straight-line rental income and expense, amortization of acquired below and above market leases, accruals for ground rent resets yet to be determined, and other non-cash adjustments. We use these non-GAAP measures to (i) facilitate meaningful comparisons of the operational performance of our properties and segments, (ii) make decisions on whether to buy, sell or refinance properties, and (iii) compare the performance of our properties and segments to those of our peers. Same store NOI at share and same store NOI at share - cash basis should not be considered alternatives to net income or cash flow from operations and may not be comparable to similarly titled measures employed by other companies.

Below are reconciliations of NOI at share to same store NOI at share for our New York segment, THE MART, 555 California Street and other investments for the three months ended March 31, 2025 compared to March 31, 2024.

(Amounts in thousands)Total New York THE MART 555
California
Street		 Other
NOI at share for the three months ended March 31, 2025$293,290  $253,317  $15,916  $17,843  $6,214 
Less NOI at share from:         
Dispositions (221)  (153)  (68)  —   — 
Development properties (6,730)  (6,730)  —   —   — 
Other non-same store income, net (27,536)  (20,866)  —   (456)  (6,214)
Same store NOI at share for the three months ended March 31, 2025$258,803  $225,568  $15,848  $17,387  $— 
          
NOI at share for the three months ended March 31, 2024$269,124  $233,129  $14,486  $16,529  $4,980 
Less NOI at share from:         
Dispositions (3,408)  (3,374)  (34)  —   — 
Development properties (9,727)  (9,727)  —   —   — 
Other non-same store income, net (6,029)  (1,049)  —   —   (4,980)
Same store NOI at share for the three months ended March 31, 2024$249,960  $218,979  $14,452  $16,529  $— 
          
Increase in same store NOI at share$8,843  $6,589  $1,396  $858  $— 
          
% increase in same store NOI at share 3.5%  3.0%  9.7%  5.2%  0.0%


VORNADO REALTY TRUST
NON-GAAP RECONCILIATIONS - CONTINUED
 
Below are reconciliations of NOI at share - cash basis to same store NOI at share - cash basis for our New York segment, THE MART, 555 California Street and other investments for the three months ended March 31, 2025 compared to March 31, 2024.
 
(Amounts in thousands)Total New York THE MART 555
California
Street		 Other
NOI at share - cash basis for the three months ended March 31, 2025$269,371  $227,570  $17,517  $18,137  $6,147 
Less NOI at share - cash basis from:         
Dispositions (223)  (153)  (70)  —   — 
Development properties (6,489)  (6,489)  —   —   — 
Other non-same store income, net (11,631)  (5,484)  —   —   (6,147)
Same store NOI at share - cash basis for the three months ended March 31, 2025$251,028  $215,444  $17,447  $18,137  $— 
          
NOI at share - cash basis for the three months ended March 31, 2024$267,613  $230,794  $14,949  $16,938  $4,932 
Less NOI at share - cash basis from:         
Dispositions (2,894)  (2,895)  1   —   — 
Development properties (9,244)  (9,244)  —   —   — 
Other non-same store income, net (6,598)  (1,666)  —   —   (4,932)
Same store NOI at share - cash basis for the three months ended March 31, 2024$248,877  $216,989  $14,950  $16,938  $— 
          
Increase (decrease) in same store NOI at share - cash basis$2,151  $(1,545) $2,497  $1,199  $— 
          
% increase (decrease) in same store NOI at share - cash basis 0.9% (0.7)%  16.7%  7.1%  0.0%


VORNADO REALTY TRUST
NON-GAAP RECONCILIATIONS - CONTINUED
 
Below are reconciliations of NOI at share to same store NOI at share for our New York segment, THE MART, 555 California Street and other investments for the three months ended March 31, 2025 compared to December 31, 2024.
 
(Amounts in thousands)Total New York THE MART 555
California
Street		 Other
NOI at share for the three months ended March 31, 2025$293,290  $253,317  $15,916  $17,843  $6,214 
Less NOI at share from:         
Dispositions (221)  (153)  (68)  —   — 
Development properties (6,196)  (6,196)  —   —   — 
Other non-same store income, net (26,946)  (20,276)  —   (456)  (6,214)
Same store NOI at share for the three months ended March 31, 2025$259,927  $226,692  $15,848  $17,387  $— 
          
NOI at share for the three months ended December 31, 2024$284,966  $257,040  $6,168  $15,854  $5,904 
Less NOI at share from:         
Dispositions (3,610)  (3,518)  (92)  —   — 
Development properties (5,627)  (5,627)  —   —   — 
Other non-same store income, net (11,880)  (5,850)  —   (126)  (5,904)
Same store NOI at share for the three months ended December 31, 2024$263,849  $242,045  $6,076  $15,728  $— 
          
(Decrease) increase in same store NOI at share$(3,922) $(15,353) $9,772  $1,659  $— 
          
% (decrease) increase in same store NOI at share(1.5)% (6.3)%  160.8%  10.5%  0.0%


VORNADO REALTY TRUST
NON-GAAP RECONCILIATIONS - CONTINUED

Below are reconciliations of NOI at share - cash basis to same store NOI at share - cash basis for our New York segment, THE MART, 555 California Street and other investments for the three months ended March 31, 2025 compared to December 31, 2024.

(Amounts in thousands)Total New York THE MART 555
California
Street		 Other
NOI at share - cash basis for the three months ended March 31, 2025$269,371  $227,570  $17,517  $18,137  $6,147 
Less NOI at share - cash basis from:         
Dispositions (223)  (153)  (70)  —   — 
Development properties 137   137   —   —   — 
Other non-same store income, net (10,995)  (4,848)  —   —   (6,147)
Same store NOI at share - cash basis for the three months ended March 31, 2025$258,290  $222,706  $17,447  $18,137  $— 
          
NOI at share - cash basis for the three months ended December 31, 2024$276,588  $241,933  $10,550  $18,138  $5,967 
Less NOI at share - cash basis from:         
Dispositions (2,312)  (2,218)  (94)  —   — 
Development properties (1,664)  (1,664)  —   —   — 
Other non-same store income, net (10,263)  (4,153)  —   (143)  (5,967)
Same store NOI at share - cash basis for the three months ended December 31, 2024$262,349  $233,898  $10,456  $17,995  $— 
          
(Decrease) increase in same store NOI at share - cash basis$(4,059) $(11,192) $6,991  $142  $— 
          
% (decrease) increase in same store NOI at share - cash basis(1.5)% (4.8)%  66.9%  0.8%  0.0%

FAQ

What was Vornado's (VNO) earnings per share in Q1 2025?

Vornado reported net income of $0.43 per diluted share and FFO of $0.67 per diluted share in Q1 2025.

What major real estate deal did Vornado complete with NYU in 2025?

Vornado completed a 70-year master lease with NYU for 1,076,000 square feet at 770 Broadway, receiving a $935M prepaid lease payment plus annual payments of $9.3M.

How much did Vornado sell its UNIQLO portion at 666 Fifth Avenue for?

Vornado's joint venture sold the UNIQLO portion at 666 Fifth Avenue for $350M, generating net proceeds of $342M and a gain of $76.2M.

What is Vornado's current occupancy rate in New York?

Vornado's New York portfolio had a total occupancy rate of 83.5%, with office at 84.4% and retail at 72.2%.

How did Vornado's Q1 2025 FFO compare to the previous year?

Vornado's Q1 2025 FFO was $135M ($0.67 per share), compared to $104.1M ($0.53 per share) in Q1 2024, representing a 26.4% increase.
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Vornado Realty

NYSE:VNO

VNO Rankings

#773 Ranked by Market Cap
#1499 Ranked by Dividends

VNO Latest News

May 5, 2025
Vornado Completes Master Lease with New York University for 770 Broadway
Apr 30, 2025
Vornado Declares Quarterly Dividends On Preferred Shares
Apr 24, 2025
Vornado Announces First Quarter Earnings Release Date and Conference Call Information
Apr 22, 2025
Vornado Announces PENN 1 Ground Rent Reset Determination
Apr 14, 2025
Vornado’s Retail JV Completes $450 Million Financing of 1535 Broadway

VNO Stock Data

6.98B
175.97M
8.16%
96.49%
5.79%
REIT - Office
Real Estate Investment Trusts
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United States
NEW YORK