Vornado Prices Public Offering of $500 Million of 7-Year Bonds

Vornado Realty Trust (NYSE:VNO) priced a public offering of $500 million aggregate principal amount of 5.75% senior unsecured notes due February 1, 2033, priced at 99.824% to yield 5.78%.

Rhea-AI Summary

Vornado Realty Trust (NYSE:VNO) priced a public offering of $500 million aggregate principal amount of 5.75% senior unsecured notes due February 1, 2033, priced at 99.824% to yield 5.78%. Net proceeds are approximately $494 million, expected to be used to repay $400 million of unsecured notes maturing June 1, 2026, with the remainder for general corporate purposes.

The notes pay interest semiannually on Feb 1 and Aug 1 beginning Aug 1, 2026, and the offering is expected to close on January 14, 2026 subject to customary conditions.

Positive

• Net proceeds of approximately $494 million available at closing
• Repay $400 million of notes maturing June 1, 2026, reducing near-term refinancing need
• New notes extend debt maturity to Feb 1, 2033

Negative

• Issued $500 million principal, creating a $100 million net increase versus the 2026 notes repaid
• Notes carry a 5.75% coupon (5.78% yield), locking long-term interest expense

Argus Jan 8 session

+2.88% close to close Open Argus

Details

News Market Reaction – VNO

On Jan 8, the first trading day after this news, VNO closed 2.88% above the previous close.

Data tracked by StockTitan Argus for the Jan 8 session.

Key Figures

Bond offering size: $500 million Coupon rate: 5.75% Issue price: 99.824% +5 more

Bond offering size

$500 million

Aggregate principal amount of senior unsecured notes

Coupon rate

5.75%

Interest rate on senior unsecured notes due February 1, 2033

Issue price

99.824%

Price as percentage of face amount

Yield to maturity

5.78%

Yield on the senior unsecured notes

Net proceeds

approximately $494 million

Expected net proceeds from the bond offering

2026 notes repaid

$400 million

Unsecured notes maturing June 1, 2026 to be repaid

Interest payments

Semiannual on Feb 1 and Aug 1

Commencing August 1, 2026

Maturity date

February 1, 2033

Maturity of 5.75% senior unsecured notes

Historical Context

5 past events · Latest: Dec 08

5 events

1. Dec 08

   Common dividend

   24h Move

   +1.3%

   Declared $0.74 common dividend with commentary on future dividend policy.

2. Nov 03

   Earnings update

   24h Move

   -4.9%

   Q3 2025 net income and FFO improved versus prior-year quarter.

3. Oct 30

   Preferred dividends

   24h Move

   -0.6%

   Declared quarterly dividends across five preferred share series.

4. Oct 21

   Earnings call notice

   24h Move

   +2.3%

   Announced Q3 2025 earnings release date and conference call details.

5. Sep 08

   Property acquisition

   24h Move

   -1.9%

   Completed $218M acquisition of largely vacant 623 Fifth Avenue office condo.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

senior unsecured notes, aggregate principal amount, operating partnership, shelf registration statement, +4 more

8 terms

senior unsecured notes financial

"5.75% senior unsecured notes due February 1, 2033."

Senior unsecured notes are a type of loan a company borrows from investors, promising to pay back with interest. They are called "unsecured" because they aren’t backed by specific assets like buildings or equipment, but "senior" because they are paid back before other debts if the company gets into trouble. Investors see them as a relatively safer way for companies to raise money.

aggregate principal amount financial

"an offering of $500 million aggregate principal amount of 5.75% senior unsecured notes"

The aggregate principal amount is the total amount of money borrowed through a bond or loan that the borrower promises to repay. It’s like the original price tag on a loan or bond, showing how much money is involved in the deal. This number matters because it indicates the size of the debt and helps investors understand the scale of the borrowing.

operating partnership financial

"Vornado Realty L.P., the operating partnership through which Vornado Realty Trust conducts its business"

An operating partnership is a separate legal entity set up to own and run a company’s core assets and day-to-day businesses, while investors hold interests indirectly through the parent company. Think of it like a dedicated garage that actually stores and services the cars while the owner keeps the dealership; it matters to investors because it affects how income, taxes, liability and voting rights are allocated and therefore can influence distributions and risk.

shelf registration statement regulatory

"under Vornado Realty L.P.’s shelf registration statement filed with the Securities and Exchange Commission"

A shelf registration statement is a document a company files with regulators that allows it to sell shares or bonds quickly when it’s a good time to raise money. It’s like having a pre-approved plan ready so the company can act fast without going through lengthy paperwork each time they want to sell, making fundraising more flexible.

prospectus supplement regulatory

"only by means of a prospectus supplement, dated January 7, 2026"

A prospectus supplement is an additional document provided alongside a company's main offering details, offering updated or extra information about a specific financial product being sold. It helps investors understand the latest terms, risks, and details of the investment, similar to how an update or revision clarifies or expands on original instructions, ensuring they have current and complete information before making a decision.

forward-looking statements regulatory

"Certain statements contained herein may constitute “forward-looking statements”"

Forward-looking statements are predictions or plans that companies share about what they expect to happen in the future, like estimating sales or profits. They matter because they help investors understand a company's outlook, but since they are based on guesses and assumptions, they can sometimes be wrong.

risk factors regulatory

"see “Risk Factors” in Part I, Item 1A, of our Annual Report on Form 10-K"

Risk factors are elements or conditions that could cause an investment's value to decrease or lead to potential losses. They are like warning signs or obstacles that can affect the success of an investment, making it uncertain or more unpredictable. Recognizing risk factors helps investors understand the possible challenges and make more informed decisions.

real estate investment trust financial

"Vornado Realty Trust is a fully-integrated equity real estate investment trust."

A real estate investment trust (REIT) is a company that owns and manages income-producing properties—like apartment buildings, shopping centers, offices, or warehouses—and is required to pass most of its rental income to shareholders as dividends. Think of it as a shared property owner: instead of buying a whole building, investors buy a slice of a portfolio that pays regular income and can offer exposure to property values and rental markets without direct management. REITs matter to investors for predictable income, diversification, and liquidity compared with owning physical real estate.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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NEW YORK, Jan. 07, 2026 (GLOBE NEWSWIRE) -- Vornado Realty Trust (NYSE:VNO) announced today that Vornado Realty L.P., the operating partnership through which Vornado Realty Trust conducts its business, has priced an offering of $500 million aggregate principal amount of 5.75% senior unsecured notes due February 1, 2033. Interest on the notes will be payable semiannually on February 1 and August 1, commencing August 1, 2026. The notes were priced at 99.824% of their face amount to yield 5.78%. The net proceeds of approximately $494 million will be used to repay our $400 million of unsecured notes due June 1, 2026 (the “2026 Notes”) at maturity, and the remainder will be used for general corporate purposes. Prior to the maturity of the 2026 Notes, the net proceeds may be temporarily invested in cash, cash equivalents and other liquid marketable investments. Subject to customary closing conditions, the offering is expected to close on January 14, 2026.

BofA Securities, Inc., PNC Capital Markets LLC, U.S. Bancorp Investments, Inc., Wells Fargo Securities, LLC, BMO Capital Markets Corp., J.P. Morgan Securities LLC, BNY Mellon Capital Markets, LLC, Citigroup Global Markets Inc., Citizens JMP Securities, LLC, Deutsche Bank Securities Inc., Goldman Sachs & Co. LLC, M&T Securities, Inc., Mizuho Securities USA LLC and Morgan Stanley & Co. LLC acted as joint book-running managers. Cabrera Capital Markets LLC, ING Financial Markets LLC, Loop Capital Markets LLC, Standard Charter Bank and Academy Securities, Inc. acted as co-managers.

The offering is being made under Vornado Realty L.P.’s shelf registration statement filed with the Securities and Exchange Commission on April 1, 2024 and only by means of a prospectus supplement, dated January 7, 2026, and accompanying prospectus, dated April 1, 2024. A copy of the prospectus supplement and accompanying prospectus relating to the offering may be obtained by calling BofA Securities, Inc. toll-free at 1-800-294-1322, PNC Capital Markets LLC toll-free at 1-855-881-0697, U.S. Bancorp Investments, Inc. toll-free at 1-877-558-2607 or Wells Fargo Securities, LLC toll-free at 1-800-645-3751. This press release does not constitute an offer to sell or the solicitation of an offer to buy these securities, nor will there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful.

Vornado Realty Trust is a fully-integrated equity real estate investment trust.

CONTACT

Thomas J. Sanelli
(212) 894-7000

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 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. 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.

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What did Vornado (VNO) announce on January 7, 2026 about a bond offering?

Vornado priced $500 million of 5.75% senior unsecured notes due Feb 1, 2033, priced at 99.824% to yield 5.78%.

How will the Vornado (VNO) bond proceeds be used and when will the offering close?

Net proceeds of ~$494 million will repay $400 million of notes due June 1, 2026 and fund general corporate purposes; expected close is Jan 14, 2026.

When will interest on Vornado's (VNO) new 2033 notes be paid?

Interest is payable semiannually on February 1 and August 1, commencing August 1, 2026.

What is the yield and price for Vornado's (VNO) 2033 senior notes?

The notes were priced at 99.824% of face and yield 5.78%.

Will Vornado (VNO) temporarily invest the offering proceeds before repaying the 2026 notes?

Yes; prior to the 2026 notes' maturity, net proceeds may be temporarily invested in cash, cash equivalents and other liquid marketable investments.