VORNADO REALTY TRUST (VNO)·Q4 2025 Earnings Summary

Vornado Beats Revenue on 770 Broadway Momentum, but FFO Dips as Interest Costs Rise

February 9, 2026 · by Fintool AI Agent

Vornado Realty Trust reported Q4 2025 results that showed continued operational improvement but headwinds from higher interest costs. Total revenues of $453.7 million beat consensus by 4.3%, while FFO as adjusted of $0.55 per share declined 9.8% year-over-year from $0.61. The quarter was dominated by transformative transactions: the 770 Broadway NYU master lease continued to generate significant gains, while Citadel's Ken Griffin exercised his option on the 350 Park Avenue development project.

Did Vornado Beat Earnings?

Revenue: Beat by 4.3% — $453.7M actual vs. $435.2M consensus

FFO per share: $0.56 reported, $0.55 as adjusted (vs. $0.61 prior year as adjusted)

The revenue beat was driven by strong leasing activity and the ongoing impact of the 770 Broadway NYU transaction. However, FFO declined primarily due to:

For the full year, Vornado's FFO as adjusted was $2.32 per share, up 2.7% from $2.26 in 2024 — showing the underlying business improving despite the quarterly volatility.

What's the 350 Park Avenue Situation?

On December 18, 2025, Kenneth C. Griffin (Citadel's founder) exercised an option to acquire at least 60% of a joint venture to develop 350 Park Avenue into a new 1.85 million square foot office tower with Citadel as anchor tenant.

Vornado's options (by July 2026):

1. Enter the JV: Take 21-36% effective ownership alongside Griffin
2. Put the site: Exercise put option for $1.2B total ($900M to Vornado)

This is one of the most significant Manhattan office developments in years. The assemblage combines 350 Park Avenue with adjacent properties to create a trophy tower in the heart of Midtown.

What Happened with Key Properties?

770 Broadway — The NYU Transformation

The May 2025 master lease with NYU continues to reshape Vornado's portfolio:

Vornado retained the 92,000 SF retail condominium leased to Wegmans.

New Acquisitions

3 East 54th Street (January 2026): Acquired for $141M — demolition-ready asset on 18,400 SF of land zoned for 232,500 buildable SF. Located adjacent to St. Regis Hotel and Vornado's Upper Fifth Avenue retail.

623 Fifth Avenue (September 2025): Acquired the 383,000 SF office condominium above Saks Fifth Avenue for $218M. Currently being redeveloped into a boutique office building with 2027 delivery expected.

How Did Leasing Perform?

Vornado signed 960,000 SF of New York office leases in Q4 2025, bringing full-year 2025 leasing to 3.74 million SF — one of the strongest years in company history.

Occupancy improved across all segments:

The 555 California Street decline reflects lease expirations at 315 Montgomery Street during Q4.

How Did the Stock React?

Day of earnings (Feb 9, 2026): VNO closed at $30.99, essentially flat (+0.06%)

After-hours: Rose to $31.60 (+2.0%), suggesting positive reception to the results

Context:

• 52-week high: $45.37 (reached post-770 Broadway announcement)
• 52-week low: $29.68
• YTD 2026: Down 7.4%
• Stock is 32% below 52-week high

The muted reaction reflects that the 770 Broadway gain was already known, while the 350 Park optionality and leasing momentum provide a constructive outlook.

What's the Balance Sheet Position?

Vornado executed significant refinancing activity in Q4 2025 and early 2026:

Leverage improved significantly:

Problem loans: The 888 Seventh Avenue mortgage ($244.5M) defaulted in December 2025 when it matured but was not repaid. Vornado has executed a term sheet for forbearance through February 2027.

What About Capital Returns?

Dividend: $0.74 per share for 2025, paid in Q4 (unchanged from 2024). Management expects to continue paying one annual dividend in Q4.

Share Repurchases:

• 2025: Repurchased 1.46M shares for $51.0M at $34.85 average
• Post-Q4: Repurchased 890K shares for $28.8M at $32.33 average
• Remaining authorization: $91.1M of $200M program

Payout Ratios:

• FFO payout: 31.9% (vs 32.7% in 2024)
• FAD payout: 97.4% (vs 42.3% in 2024 — elevated due to 770 Broadway timing)

Who Are the Top Tenants?

Vornado's tenant roster reads like a who's who of NYC corporate real estate:

Top 30 tenants represent 45.8% of annualized escalated rents.

What's the Development Pipeline?

Active development projects with projected returns:

Future opportunities: Hotel Pennsylvania site (2.1M SF), 350 Park assemblage (1.5M SF), 260 Eleventh Avenue (280K SF).

Key Takeaways

Positives:

• Revenue beat consensus by 4.3%
• Same store NOI +5.0% demonstrates operational improvement
• NY occupancy reached 90.0%, up 240 bps YoY
• 3.74M SF of NY office leasing in 2025 — exceptional volume
• Net debt to EBITDAre improved to 7.7x from 8.6x
• 350 Park optionality provides $900M+ in potential value
• Strong tenant roster with tech and finance anchors

Concerns:

• FFO as adjusted declined 9.8% YoY to $0.55
• Interest expense headwind of $9.2M vs. prior year
• 888 Seventh Avenue loan in default
• Stock down 32% from 52-week high
• FAD payout ratio elevated at 97.4%

Catalyst Calendar:

• July 2026: Deadline for 350 Park JV decision vs. put exercise
• 2026: PENN 2 stabilization expected
• 2027: 623 Fifth Avenue and Sunset Pier 94 deliveries
• June 2026: $400M senior unsecured notes maturity

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View Vornado's full company profile | Q4 2025 Earnings Documents | Previous Quarter (Q3 2025)