Vornado Realty Trust

VNO

Market cap $5.26B

We added to our senior housing investment theme by purchasing additional shares of Ventas, Inc. During the quarter, we reacquired shares in best-in-class self-storage REIT Extra Space Storage Inc., which owns or operates a portfolio of over 4,200 properties in the U.S., with 14% total market share by square footage. During the quarter, we exited the Fund's position in Vornado Realty Trust.

The most oversold stocks in the real estate sector presents an opportunity to buy into undervalued companies.

Vornado Realty Trust has battled headwinds from higher interest rates and challenging office market conditions. While short-term interest rates have started to fall, longer-term rates haven't declined as much.

Vornado Realty saw its New York occupancy rate reach 90% to end 2025, a material 250 basis point rise from the third quarter. The REIT saw FFO per share decline by 2 cents year-over-year to $0.56 per share, with revenue beating consensus in the fourth quarter. The Series O Preferreds currently pay out a 7.4% current yield and are trading for $15.10 per share.

Vornado Realty Trust maintains stable financial and credit metrics, with total assets of ~$15.5B and debt of ~$7.94B. VNO's market-adjusted asset yield is 4.5%, and its expected AFFO yield is 5.05%, among the sector's highest forward P/AFFOs. Credit ratings remain unchanged: Moody's Ba1, Fitch BB+, and S&P BBB-, with market-adjusted metrics supporting a Ba1 rating.

Vornado Realty Trust (VNO) Q4 2025 Earnings Call Transcript

VNO's Q4 FFO misses estimates and falls year over year, while revenues top estimates but slip slightly amid decent leasing activity.

The headline numbers for Vornado (VNO) give insight into how the company performed in the quarter ended December 2025, but it may be worthwhile to compare some of its key metrics to Wall Street estimates and the year-ago actuals.

Vornado (VNO) came out with quarterly funds from operations (FFO) of $0.55 per share, missing the Zacks Consensus Estimate of $0.57 per share. This compares to FFO of $0.61 per share a year ago.

NEW YORK, Feb. 09, 2026 (GLOBE NEWSWIRE) -- Vornado Realty Trust (NYSE: VNO) reported today: Quarter Ended December 31, 2025 Financial Results NET INCOME attributable to common shareholders for the quarter ended December 31, 2025 was $601,000, or $0.00 per diluted share, compared to $1,203,000, or $0.01 per diluted share, for the prior year's quarter. FUNDS FROM OPERATIONS ("FFO") attributable to common shareholders plus assumed conversions (non-GAAP) for the quarter ended December 31, 2025 was $112,927,000, or $0.56 per diluted share, compared to $117,085,000, or $0.58 per diluted share, for the prior year's quarter.