It has been about a month since the last earnings report for Vornado (VNO). Shares have added about 0.1% in that time frame, underperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is Vornado due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.

Vornado's Q3 FFO & Revenues Beat Estimates, Same-Store NOI Declines

Vornado’s third-quarter 2024 FFO plus assumed conversions, on an adjusted basis, were 52 cents per share, which beat the Zacks Consensus Estimate of 51 cents. However, the figure declined 21.2% year over year.

Results displayed better-than-anticipated top-line growth. Vornado witnessed decent leasing activity during the quarter. However, total same-store NOI declined year over year.

Total revenues came in at $443.3 million in the reported quarter, which beat the Zacks Consensus Estimate of $440.7 million. However, on a year-over-year basis, revenues declined nearly 1.7%.

Vornado’s Quarter in Detail

In the reported quarter, total same-store NOI (at share) came in at $247.8 million, declining 8.4% from the prior-year quarter. The metric for the New York, THE MART and 555 California Street portfolios decreased 9%, 2.8% and 4.7%, respectively, from the prior-year period.

Interest expenses rose 14.5% year over year to $100.9 million.

During the quarter, in the New York office portfolio, 454,000 square feet of office space (292,000 square feet at share) was leased for an initial rent of $92.32 per square foot and a weighted average lease term of 9.7 years. The tenant improvements and leasing commissions were $9.93 per square foot per annum or 10.8% of the initial rent.

In the New York retail portfolio, 97,000 square feet were leased (92,000 square feet at share) at an initial rent of $66.26 per square foot and a weighted average lease term of 10.8 years. The tenant improvements and leasing commissions were $3.83 per square foot per annum or 5.8% of the initial rent.

At THE MART, 239,000 square feet of space (all at share) was leased for an initial rent of $50.18 per square foot and a weighted average lease term of 8.4 years. The tenant improvements and leasing commissions were $13.19 per square foot per annum or 26.3% of the initial rent.

At 555 California Street, 46,000 square feet of office space (33,000 square feet at share) was leased for an initial rent of $98.75 per square foot and a weighted average lease term of 11.6 years. The tenant improvements and leasing commissions were $19.41 per square foot per annum or 19.7% of the initial rent.