In This Article:
Vornado Realty Trust’s VNO fourth-quarter 2024 funds from operations (FFO) plus assumed conversions, on an adjusted basis, were 61 cents per share, which beat the Zacks Consensus Estimate of 51 cents. However, the figure declined 3.2% year over year.
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The results displayed better-than-anticipated top-line growth. Vornado witnessed decent leasing activity during the quarter. However, total same-store net operating income (NOI) declined year over year.
Total revenues were $457.8 million in the reported quarter, which beat the Zacks Consensus Estimate of $447.4 million. On a year-over-year basis, revenues gained nearly 3.6%.
For 2024, FFO plus assumed conversions, as adjusted per share, came in at $2.26, lower than the prior-year tally of $2.61, beating the Zacks Consensus Estimate of $2.16. Total revenues came in at $1.79 billion, down by 1.3% from the previous year, beating the consensus mark of $1.78 billion.
VNO’s Quarter in Detail
In the reported quarter, total same-store NOI (at share) came in at $262.7 million compared with $275.2 million in the prior-year quarter. The metric for the New York, THE MART and 555 California Street portfolios decreased 0.7%, 57.5% and 13.2%, respectively, from the prior-year period.
Interest and debt expenses rose 14.6% year over year to $100.5 million.
During the quarter, in the New York office portfolio, 583,000 square feet of office space (513,000 square feet at share) was leased for an initial rent of $87.48 per square foot and a weighted average lease term of 5.0 years. The tenant improvements and leasing commissions were $12.76 per square foot per annum or 14.6% of the initial rent.
In the New York retail portfolio, 50,000 square feet were leased (32,000 square feet at share) at an initial rent of $315.10 per square foot and a weighted average lease term of 11.3 years. The tenant improvements and leasing commissions were $15.40 per square foot per annum or 4.9% of the initial rent.
At THE MART, 64,000 square feet of space (all at share) was leased for an initial rent of $52.28 per square foot and a weighted average lease term of 6.8 years. The tenant improvements and leasing commissions were $11.30 per square foot per annum or 21.6% of the initial rent.
At 555 California Street, 62,000 square feet of office space (43,000 square feet at share) was leased for an initial rent of $133.87 per square foot and a weighted average lease term of 3.7 years. The tenant improvements and leasing commissions were $18.65 per square foot per annum or 13.9% of the initial rent.