VNO

A month has gone by since the last earnings report for Vornado (VNO). Shares have lost about 10.4% in that time frame, underperforming the S&P 500. Will the recent negative trend continue leading up to its next earnings release, or is Vornado due for a breakout? Well, first let's take a quick look at its latest earnings report in order to get a better handle on the recent catalysts for Vornado Realty Trust before we dive into how investors and analysts have reacted as of late. Vornado Realty Trust reported second-quarter 2026 FFO, as adjusted, of 67 cents per share, up 19.6% year over year. The figure beat the Zacks Consensus Estimate of 57 cents by 17.54%. Rent commencements, the NYU master lease and signage operations supported adjusted FFO growth. Revenues rose 4.7% year over year to $462.2 million but missed the consensus mark of $472.4 million by 2.16%. Total rental revenues increased to $405.1 million from $382.3 million in the prior-year quarter. Property rentals were nearly flat year over year at $332.4 million, while tenant expense reimbursements increased to $46.3 million from $34.6 million. Straight-line rental income rose to $26.3 million from $15.4 million. Fee and other income totaled $57.2 million compared with $59.2 million a year ago, as Building Maintenance Services cleaning fees declined to $33.3 million from $37.4 million. Operating expenses increased to $223.7 million from $219.3 million. Depreciation and amortization climbed sharply to $171.2 million from $115.6 million. Total NOI at share increased to $304.1 million from $277.7 million. New York NOI at share rose to $251.7 million from $230.1 million, driven by gains across the office, street retail and residential assets. New York office NOI at share increased to $183.4 million from $170.9 million year over year. New York Street Retail NOI rose to $52.5 million from $44.5 million, while New York residential NOI improved to $6.7 million from $6.4 million. Total same-store NOI increased 9.8%, including growth of 11.9% in New York and 9.1% at THE MART. However, the metric declined 14.3% at 555 California Street. On a cash basis, total same-store NOI increased 2.9%, including growth of 6.2% in New York and 15.1% at THE MART. During the second quarter, Vornado leased 348,000 square feet of New York office space at an initial rent of $107.24 per square foot. The weighted average lease term was eight years. For second-generation New York office space, straight-line rents increased 7.7% from prior rents. Cash-basis rents rose 5%, while tenant improvements and leasing commissions represented 13.3% of initial rent. The company also leased 61,000 square feet of New York retail space and 103,000 square feet at THE MART. Straight-line rents on second-generation space increased 12.1% for retail and 14% at THE MART. Total portfolio occupancy stood at 90.8%, including 92.2% for the New York office. Vornado completed the acquisition of a 49% interest in Park Avenue Plaza at a gross asset valuation of $1.1 billion. The 1.2-million-square-foot Manhattan office building is encumbered by a $575 million loan bearing a fixed interest rate of 2.99%. Alexander’s, in which Vornado owns a 32.4% interest, sold Rego Park I for $235.5 million. Vornado recognized a $44.3 million share of the net gain. Separately, a 50%-owned consolidated joint venture sold 606 Broadway, generating a $32.1 million gain on debt extinguishment. Vornado ended June with $675.4 million in cash and cash equivalents, $113.6 million of restricted cash and $1.19 billion available under its revolving credit facilities. Total liquidity was $1.98 billion. During the reported quarter, the company repurchased about 1.79 million common shares for $53.46 million at an average price of $29.92 per share. As of Aug. 3, 2026, $286.6 million remained available under the repurchase program. It turns out, fresh estimates have trended upward during the past month. Currently, Vornado has a poor Growth Score of F, however its Momentum Score is doing a lot better with a B. Following the exact same course, the stock was allocated a grade of B on the value side, putting it in the second quintile for value investors. Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in. Estimates have been trending upward for the stock, and the magnitude of this revision looks promising. Notably, Vornado has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Vornado Realty Trust (VNO) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Gotham poured $2.65B into SPY and grew its HUM stake 65-fold, pivoting hard from single-name stock-picking toward defensive market beta. General Mills' 4.4x add targets a trough valuation of 13x forward earnings and a 6% yield, as consumer sentiment sits at recessionary levels. Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and KLA didn't make the cut. Grab the names FREE today. Joel Greenblatt's Gotham Asset Management disclosed a defensive tilt in its Q2 2026 13F, filed in mid-August, headlined by a $2.65 billion add to the SPDR S&P 500 ETF and outsized conviction buys in managed care, packaged foods, and Manhattan office real estate. For a quant shop built on the "magic formula" framework, the shift toward index beta and staples is the tell. Greenblatt appears to be dialing down single-name risk and buying umbrellas. The centerpiece move: SPDR S&P 500 ETF Trust (NYSEARCA:SPY) now anchors roughly 20% of the 1,791-position book. That is a striking allocation for a firm known for concentrated value screens. With SPY trading at $768.51 and up 13.31% year to date, the add functions as a hedge against factor drift while the fund reshuffles hundreds of smaller positions. Pair that with a new ~$157 million short-duration Treasury bill position, and the message is clear: dry powder and market beta over stock-picking alpha. The most aggressive individual add was Humana (NYSE:HUM), where Gotham grew its share count roughly 65-fold. The thesis is visible in the numbers. Humana posted Q2 revenue growth of 26.2% year over year, individual Medicare Advantage membership climbed meaningfully year over year, and CEO Jim Rechtin reiterated the path to a "sustainable pre-tax margin of at least 3% in 2028." The stock is up 51.18% year to date, and analysts carry a $416.43 target. Healthcare spending grew from $3,537.7B in June 2025 to $3,741.0B in June 2026, a textbook defensive tailwind. Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and KLA didn't make the cut. Grab the names FREE today. General Mills (NYSE:GIS) saw a 4.4x share increase. This is a contrarian value bet: the stock is down 14.37% year to date, trades at a forward P/E of 13, and yields 6.22%. With consumer sentiment at recessionary levels of 49.5, staples exposure at trough multiples fits the playbook. Vornado Realty Trust (NYSE:VNO) got a 3.2x add, a bet on the Manhattan office recovery. Vornado's NY office occupancy climbed to 92.2%, and Chairman Steven Roth noted "Office leasing volume in Manhattan is at its highest level in 25 years." The outlier is KLA Corporation (NASDAQ:KLAC), up 8.5x. Semiconductor capital equipment is cyclical, so this looks less defensive and more like a valuation call on an AI infrastructure winner posting 42.5% operating margins and 87.5% return on equity. The defensive skeleton makes sense. Sentiment is depressed, the VIX sits at 14.25 (complacency territory), and PCE growth is decelerating. Humana offers a clear operational turnaround with a hard 2028 margin target. General Mills offers yield and a trough valuation. Vornado offers real occupancy improvement at a 23% NAV discount. The SPY position is a hedge, not a thesis. For a retirement-focused investor, the framework is instructive: pairing a market beta anchor with defensive cash flow names, holding dry powder in T-bills, and treating concentrated cyclicals like KLAC as satellite positions. Among the four conviction adds, HUM stands out where the setup, valuation, and demographic tailwind align most cleanly. Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and KLA didn't make the cut. Grab the names FREE today. Contact [email protected] for any questions or corrections.

Image source: The Motley Fool. Tuesday, Aug. 4, 2026 at 8:00 a.m. ET Chairman and Chief Executive Officer - Steven Roth President and Chief Financial Officer - Michael Franco Executive Vice President and Corporation Counsel - Steven Borenstein Operator: Good morning, and welcome to the Vornado Realty Trust Second Quarter 2026 Earnings Call. My name is Betsy, and I will be your operator for today's call. This call is being recorded for replay purposes. [Operator Instructions] I will now turn the call over to Mr. Steve Borenstein, Executive Vice President and Corporation Counsel. Please go ahead. Steven Borenstein: Welcome to Vornado Realty Trust Second Quarter Earnings Call. Yesterday afternoon, we issued our second quarter earnings release and filed our quarterly report on Form 10-Q with the Securities and Exchange Commission. These documents as well as our supplemental financial information package are available on our website, www.vno.com, under the Investor Relations section. In these documents and during today's call, we will discuss certain non-GAAP financial measures. Reconciliations of these measures to the most directly comparable GAAP measures are included in our earnings release, Form 10-Q and financial supplement. Please be aware that statements made during this call may be deemed forward-looking statements, and actual results may differ materially from these statements due to a variety of risks, uncertainties and other factors. Please refer to our filings with the Securities and Exchange Commission, including our annual report on Form 10-K for the year ended December 31, 2025, for more information regarding these risks and uncertainties. The call may include time-sensitive information that may be accurate only as of today's date. The company does not undertake a duty to update any forward-looking statements. On the call today from management for our opening comments are Steven Roth, Chairman and Chief Executive Officer; and Michael Franco, President and Chief Financial Officer. Our senior team is also present and available for questions. I will now turn the call over to Steven Roth. Steven Roth: Thank you, Steve, and good morning, everyone. We had another strong quarter with comparable FFO of $0.67, beating analyst consensus by $0.10 or 17.5%. Michael will review it all shortly. But first, let me cover what we are seeing on the ground. New York is clearly the best, strongest and most important real estate market in the country and the most resilient. We are a Manhattan-centric office and street retail company with best-in-class assets, which are benefiting from these dynamics. The stock market seems to appreciate this, given our stock price performance year-to-date and over the past 2 years and the past 3 years has been the best in our peer group. And there is more to come. I believe our stock is still stupid cheap. For example, Green Street shows us at a 23% NAV discount, much deeper than our peers. The landlord's market that we have been predicting for the past many quarters is here. It is broad-based and it is strengthening. Office leasing volume in Manhattan is at its highest level in 25 years. Tenants are expanding all over the city. Available space and sublease space continues to evaporate and office-to-residential conversions continue to remove square footage from the office inventory. There is a serious shortage of large block availability. Vacancies in the 180 million square foot Class A better building market in which we compete is now down to 6.2%, clearly a landlords market. There is limited new supply on the horizon. And remember, new supply takes as long as 5 years to deliver and requires upwards of $300 rents to pencil. And to add to all that, interest rates are rising. As a result of all this good stuff, rents are going up, I couldn't be more constructive. In New York, tenant demand spans across all industries. Law firms alone leased 2.3 million square feet this quarter. Legal, tech and media accounted for 8 of the top 10 leases signed. This isn't one industry having a moment. All of our clients are growing. Interestingly, a real estate platform that tracks these kinds of things recently reported that AI companies are now leasing more space in New York than in San Francisco. So all good. At Vornado, our singular focus is on executing our plan to deliver the highest growth in our sector based on our lineup of high-quality assets and in-process projects. Here is our 2026 scorecard. During the first half of 2026, we leased 978,000 square feet overall. For Manhattan office, we leased 659,000 square feet at $105 per square foot average starting rents with mark-to-markets of positive 9.5% GAAP and positive 7.1% cash. I would note that these mark-to-market stats do not include our leasing activity at PENN 2. We are following our transformation. We are achieving rents that are just about double the old rents. This is as good a place as any to take a victory lap on what we have accomplished at PENN 1 and PENN 2 financially, physically and aesthetically. Think about it. At PENN 1, broadly speaking, we invested $200 per square foot to achieve a $50 a foot uptick in rents, which when all gets said and done, is a 25% return. Rents at PENN are now well above our underwriting and are now the best value in town. So plenty of room to grow here. Our physical transformation is stunning and game-changing and award-winning. Please go take a look. During the second quarter in Manhattan, we executed 29 office deals totaling 348,000 square feet at industry-leading $107 per square foot average starting rent with mark-to-markets of positive 7.7% GAAP and positive 5.0% cash. This quarter's leasing volume included 181,000 square feet in the PENN District and 167,000 square feet in our other Manhattan assets. We are now consistently achieving triple-digit average starting rents. I suggest that mark-to-market is a squishy metric, which depends entirely upon which leases are included in the calculation and their rent. And so it's pretty random. Rather, I submit it is better to look at starting rents for new leases as a much more fine-tuned metric, which would allow for better comparisons of buildings to buildings and companies to companies. I confess to talking my book here since our starting rents have led the New York office public peers for years now. In the PENN District, at PENN 2, we have 67,000 square feet of leases out for signature, and we expect to be fully leased here down to dribs and drabs by year-end. At PENN 1, we have 246,000 square feet of leases out for signature at an average mark-to-market of a whopping 44%. Company-wide, we are projecting third quarter mark-to-markets of over 20%. I guess you could call this all soft guidance. With all of this activity, we continue to review our pricing here on a bi-weekly basis. Importantly, given that roughly 10% of the space in PENN 1 rolls each year, we expect continued strong growth from PENN 1 as we keep marching old rents up to market. We continue to be delighted with our 2 most recent acquisitions, 623 Fifth Avenue and Park Avenue Plaza. Thanks to Harrison for giving us a shout out for these 2 deals on his call. 623 Fifth Avenue is our spectacularly well located. And by that, I mean in the center of everything, 383,000 square foot asset, which sits on top of Saks Fifth Avenue that we are redeveloping to be the 220 Central Park South version of boutique office space. We are off to a great start here, receiving outstanding reaction from brokers and tenants. We are about to execute our first lease of the 2 floors with a financial services firm at rents consistent with our underwriting. Of note, even at this early stage, market demand is telling us to increase our asking rents above original underwriting. As you know, we recently acquired a half interest partnering with Fisher Brothers at Park Avenue Plaza, a 1.2 million square foot tower on 53rd Street. The deal was at a valuation of $950 a foot, which for Prime Park Avenue is a 1/3 of replacement cost. This asset taking advantage of the in-place 2.9% mortgage loan with 6 years of term remaining is a coupon clipper at 8% cash on cash. So the way I look at this, we are earning double the risk-free bond rate from risk-free Park Avenue AAA real estate. The in-place leases at Park Avenue Plaza are at, give or take, half current market. So we expect very substantial capital appreciation here to go hand-in-hand with above-market current earnings. Our market-leading signage business in the 2 most important and highest traffic locations in Manhattan, Times Square and the PENN District continues to grow at a healthy rate. We love this business. It's capital light and has been growing at 5% per year. We intend to add more signage in the PENN District, where we control almost all of the real estate around Penn Station and Madison Square Garden. If you drive or walk past Park Avenue at 52nd Street, you will see that our 350 Park Avenue site is now under construction, actually under demolition. We intend to shortly exercise our investment option to participate in this deal at our maximum ownership percentage of 36% alongside Ken Griffin as our 60% partner and with Citadel as our 1-million-square-foot anchor tenant. Several commentators and analysts have suggested that we take the money and run. No, no, no, that would be incredibly shortsighted. In our business, there is no better place to invest in Prime Park Avenue with 1 million square foot tenant and a 60% partner already committed. We are contributing our existing land and 65-year-old building at a $900 million valuation. We have the balance sheet resources to support this deal and all of our other financial requirements as well. We have a $3.3 billion construction loan ready to go. I think $3.3 billion may be a record. The partnership, and by that, I mean all partners is contemplating selling down a 25% interest at a price which will give us an appropriate profit and also give the buyers an appropriate profit. We expect the joint venture closing will take place in September. We are extremely excited and bullish about the potential returns from this project. The brokerage and tenant community is buzzing, and we are already getting incoming for available space, all of which is new space from 600 feet to 1,000 feet from clients seeking the very best and for whom our delivery date fits their needs. At Vornado, management of our balance sheet is the highest priority. Michael and his team have worked very hard to get our debt ratio down into the 7s. We keep dry powder for offense and liquidity for defense in all cycles. We are in conversations to sell 2 nonessential assets, which would very substantially increase our liquidity profile. Here is the status of our stock buyback program. This quarter, we repurchased 1.8 million shares at $29.92 per share. Since we have started buying back shares in 2023, we have repurchased 8 million shares at $26.61 per share. We will continue to take advantage of the stock as the opportunity presents itself. Just for kicks, on a final and interesting note, I recently heard an interview with Taylor Sheridan, the screenwriter, director, producer, and actor best known for creating the massively successful Yellowstone universe. I confess that I'm addicted to his stuff. Here's what he said about New York. I effing love New York. It's the first place I lived after Chicago. It's a phenomenal city, and it's a city that I feel is much tougher. It endures a bad politician or 2, and you can't tank it. New York just shakes off this stuff like a case of bad fleas, it keeps going. It doesn't matter the industry if you're in, in New York. If you're successful here, if you're a bricklayer, you're one of the best frigging bricklayers on the planet because there are 8 million people competing for your job. New York just mandates excellence from everybody in every way and in every field. By the way, when somebody asks who doesn't know me what I do for a living, I say I'm a bricklayer. Now off to Michael. Michael Franco: Thank you, Steve, and good morning, everyone. Second quarter comparable FFO was $0.67 per share compared to $0.56 per share for last year's second quarter, an increase of $0.11. This significant increase was primarily due to higher FFO resulting from rent commencements at PENN 1 and PENN 2, the impact from the NYU master lease at 770 Broadway being in the prior year and higher NOI from signage revenue, partially offset by higher net interest expense. We have provided a quarter-over-quarter bridge on Page 2 of our earnings release and on Page 6 of our financial supplement. Our core office and retail businesses are performing increasingly well and are now beginning to reflect the growth from leasing up PENN as well as our other vacancies. Our New York office same-store NOI was up 13.7% for GAAP and 11.9% for cash. Our New York retail same-store NOI was up 7.3% for GAAP and 5.7% for cash, and our New York business overall was up 11.9% for GAAP and 6.2% for cash. We now clearly expect full year 2026 comparable FFO to be higher than 2025 with second quarter comparable FFO being a decent average run rate for the rest of the year. As previously indicated, we expect there to be significant earnings growth in 2027 as the positive impact from the lease-up of PENN 1, PENN 2 and our other vacancies continues to take effect as well as the positive impact of the recent acquisition of Park Avenue Plaza. Turning to occupancy. New York office occupancy increased 60 basis points this quarter to 92.2% from last quarter and up significantly from the trough of 84.4% in the first quarter of 2025. This significant pickup is reflective of the successful execution of our plans and the Manhattan Class A office market dynamics that we've been talking about over the past couple of years. Our New York office pipeline is robust and has over 2.2 million square feet of leases in negotiation and various stages of proposal, including the 1 million square foot Citadel lease at 350 Park Avenue and over 500,000 square feet in the PENN District. Based on our strong leasing pipeline, we anticipate that our occupancy will grow to north of 93% by year-end with further gains thereafter. Demand for our retail assets also continues to pick up. We are seeing new retailers, including many international ones, enter the market as well as retailers in prime locations looking to renew their spaces early so as not to lose them upon expiry. Finally, turning to our balance sheet. Our liquidity remains strong at $2 billion, which is comprised of cash of $789 million and our undrawn credit lines of $1.2 billion. We hope to bolster this further with the asset sales Steve referenced earlier. With that, I'll turn it over to the operator for Q&A. Operator: [Operator Instructions] The first question today comes from Floris Van Dijkum with Ladenburg. Floris Gerbrand Van Dijkum: Obviously, we're starting to see some growth, which is very encouraging. Maybe could you talk a little bit about your -- the gap between leased and economic occupancy today and where your peak physical or economic occupancy was in the past? And how much more of a runway there is? Steven Roth: Michael? Michael Franco: Floris, so historically, we ran at 95%, 96% occupancy on a physical basis. I think maybe touched a little bit higher occasionally, but I would say that was a pretty consistent run rate. Today, we're at a little over 92%. We expect that we'll get back to our historical run rate in the next couple of years. Given the pace of the market, it could happen sooner than that. So we're pretty confident about that. From an economic perspective, just given the signed-not-commenced leases, obviously, that number is lower. I think on a, let's call it, on a GAAP basis, which probably relates most directly to earnings, we're probably 83%, 84% relative to the 92.2%. So physically, we should get back into the mid-90s. And obviously, on a GAAP basis, that will close up as those leases come online. Steven Roth: Floris, I'll put a little more meat on that. Our signed but not in occupancy and not in our earnings number the revenue side of that rents are $180 million, which is probably somewhere $150 million, a little bit more than that of FFO. So that will give you the number as to where we stand now. And that number, obviously, haven't commenced yet, so that's in the bag. Floris Gerbrand Van Dijkum: My follow-up question, and this is more of a broad question because if you do the math, the rents required to make 350 Park Avenue pencil out suggests that you're going to rent that building at around $350 a square foot. What kind of impacts will having these really, really high-end properties do to adjacent or nearby buildings? I'm thinking also potentially about the potential upside of your recent acquisition at Park Avenue Plaza. Steven Roth: The rents on the new buildings -- your number is approximately correct. Will create an umbrella at all of the older buildings, which have in-place rents of less than that at Park Avenue Plaza has rents of about 1/3 of what you just mentioned. It will all suck them all up. So that what's going to happen is the combination of scarcity, the combination of everybody in New York expanding and looking for space and the fact that there's a scarcity of new supply and the combination of the construction cost, interest rates, et cetera, require a very high rent for a new building. That will cause the great, the well-located older buildings to go up in value enormously. And obviously, that's the reason we bought Park Avenue Plaza. Operator: The next question comes from Alexander Goldfarb with Piper Sandler. Alexander Goldfarb: Thank you for the update on 350. I guess a question there around rents. While a few quarters ago, we were talking about sort of $250 gross to make new deals pencil, I think when we talked about PENN 15, now you're talking about $300, $350 to make new deals pencil and clearly, at $350, you have legacy basis. So the increase in rents to make deals pencil, is that sort of on a new market basis, meaning if you were to buy land today and given where interest rates are? Or what's caused sort of the target construction rents to go from sort of the $250 we talked a few quarters ago to now sort of the $300 to $350? Steven Roth: Oh boy, complicated. I'm not sure I understand the question, but none of these numbers are written in stone, Alex. I mean they're sort of like ranges. The market doesn't really need $350 a foot to start a new building. The market and our competitors would start a building somewhere in the probably mid- to high 3s, mid- to high 2s. And what the market is doing is giving a bargain rent to the anchor tenant with the hopes and aspirations that the follow-on smaller tenants at higher rents will make the whole thing pencil. But in the whole, you think about it, if a new building on Park Avenue costs $3,000 a foot, you can do the math. Alexander Goldfarb: Okay. And then the second question for Glen. Year-to-date, you've done about 660,000 square feet gross in New York. There are a lot of tenants that are talking about early renewals. Can you talk about the level of conversation and the -- presumably, there's some acceleration in the back half or just what we should expect as far as leasing goes compared to the 660,000 so far? Glen Weiss: So as Michael said in our script remarks, putting aside Citadel, we have about 1.2 million square feet in our pipeline, which is a really strong mix of new expansion renewal and we're strategic about renewals. We're not going to do a renewal unless we like the terms. So while we're talking to a lot of tenants expiring next year, the year after, et cetera, as the market continues to quicken in strength and pace and as we feel better and better every week with what's happening, we're being very careful in terms of locking in too quickly. But our tenants generally want to stay, and we're in a lot of discussions in that regard, but we're being careful and smart about it. Operator: The next question comes from Dylan Burzinski with Green Street. Dylan Burzinski: Steve, maybe going back to your comments at the outset of your prepared remarks talking about how the stock remains cheap, how it remains well below sort of our NAV estimate. Can you kind of just talk about -- I think you alluded to in the past, just being interested in taking assets to market and testing where private market bids are at. Can you just talk about that? Is that still something you guys are interested in and maybe obviously using those funds to continue to take advantage of the disconnect between where shares are at today and where you guys perceive value to be? Steven Roth: I think what you're saying is that we should sell buildings at the private market value and buy stock, which is Green Street's formula for success. We sort of believe in that. We sort of also believe that our buildings are going to appreciate value. We are actually in conversations with selling 2 buildings the proceeds of which would be a very significant cash amount and which accomplishes our financial objectives in the short term. The history in New York has been that almost every time you sell a building in almost any cycle, you've been wrong. And that goes for our street retail assets and our office assets. So we do have a handful of assets that we are happy to sell and want to sell. We have a couple of assets that we are actively in conversations to sell. And we're very happy owning the rest of them until at some point, they become more valuable and then maybe we would sell them. With respect to our stock, we still think our stock is extremely cheap. As you know, the NAV calculations are basically based upon what is in place now and what assets we own now. It doesn't give any credit for what will happen in the future with any of our -- I mean, for example, there's no credit for the 350 Park Avenue deal and the profit that will undoubtedly come from that or the Park Avenue Plaza uptick in rents or the 623 development that we're doing. So the NAV number is a static number, which is backwards-looking. When we sit in our council room, we look at that number very hard, but we also look at the future value. And so that's my answer, sir. Dylan Burzinski: No, that's very helpful. I appreciate that commentary, Steve. And then maybe just one on -- I think it was announced yesterday that Snap was subleasing some of Verizon's space. Is that -- are you guys involved in that at all? I know when Verizon struck that lease, rents are probably higher today than where Verizon's lease is at. So any upside that you guys are able to get? Or is that sort of solely Verizon's economics? Steven Roth: We didn't participate in that deal. That was a deal between Verizon and the subtenant. We did, however, decline our recapture option, choosing instead to keep the Verizon credit for the 20-year term. Operator: The next question comes from Steve Sakwa with Evercore ISI. Steve Sakwa: I think on the last couple of calls, you guys have talked about this kind of $0.40 FFO uplift in '27. I know you don't give formal guidance, but there was a bridge there just given the strong signed-but-not-occupied pipeline. Obviously, you've had good growth in Q2 and talking about a good second half. I guess, does that $0.40 number still apply? Or has some of that FFO maybe shifted into '26 and it dampens the growth a little bit into '27? Michael Franco: Steve, we're not going to get too much into guidance given we don't give it. If you remember, when we made that comment, I think we started off talking about the year being flattish relative to last year. Obviously, we're significantly outperforming that. But the $0.40 was relative to that flattish comment. So I think we were at $2.35 last year, $0.40 on top of that, $2.75. So some of the growth is occurring earlier this year than we expected. At the same time, we still think we have meaningful growth next year. So our comment on sort of significant growth still to come in '27 remains intact. Some of that $0.40 got started flowing through this year. But certainly relative to where we started beginning of the year is still intact. And given the dynamics, hopefully, it will be in excess of that. Steve Sakwa: Great. And as my follow-up, Steve, I guess your comments around doing a JV at 350 is interesting given the Citadel lease. I guess how did you sort of weigh doing that JV now versus leasing that building up further and doing something down the road given that it's not being delivered for 4 to 5 years? Steven Roth: We made a decision to do the deal with Ken Griffin and Citadel years ago. And our deal with Ken was signed probably, I don't know, 3 years ago, something like that. So this is just the continuation of that path, which was decided 3 years ago. During that time, between now and then, Barry and his team and the Citadel team have designed the building with the Foster and the Foster + Partners architectural firm and done the drawings and we're now under construction. So these decisions were made 3 years ago, maybe even 4 years ago. Operator: The next question comes from Jana Galan with Bank of America. Steven Roth: By the way, before I get into that, let me finish the last question a little bit more. If you do the math and we do the math, I mean, we really groove on math around here. If you do the math, notwithstanding the fact that there is a time delay from the time that you demolish the old building and give up the income on the old building from the time you get the new building, the new building, which will have rents in the stratosphere, so to speak, which is the market, which is required, are substantially enormously more profitable than keeping the old 65-year-old building, dumping money into that building because in 10 years, that's going to be a 75-year-old building, and you know what that means. So anyway, decision really was not that difficult to make to demolish and build a new building. I'm sorry, now we can go to the next question. Operator: The next question comes from Jana Galan with Bank of America. Jana Galan: Congrats on the quarter. The retail leasing had a nice pickup, but the lease term I noticed was pretty short. Curious if that's just a strategy to do more short-term activation as you plan some of the larger retail redevelopment or if something else drove that? Michael Franco: Jana, I would say generally, it was just -- in general, a number of short-term deals, some in-place tenants that we extended, some short-term deals that we don't want to lock up the space. We continue to view the market as getting stronger. And so we don't want to commit the space long term until we get to an appropriate level. And in some cases, tenants need more time to make decisions on how long they want to commit for, et cetera. So a mix of those. But I think most of those, as we said, short-term in nature. Jana Galan: And then maybe just I noticed the Pier 94 occupancy dropped quarter-over-quarter. Anything you can share that or prospects for new leasing there? Glen Weiss: It's Glen. I'll take this one. So the occupancy is already up into the high 80s by the end of July. So we had a couple of vacates at the end of June, which is why you see the number you're seeing, and we're already back up to where we were with a lot more activity in the pipeline. Michael Franco: I mean, Glen, why don't you just comment on the users' experience and reaction to the pier. Glen Weiss: Yes. I mean the activity has been excellent. The users are all top-of-class, head-of-class, Google, Netflix, Paramount, Apple, all the names we want. And as they go on and on, the experience has been A+. The reports back from them have been excellent. So we're feeling very good as we head into the second half of this year into '27 that really great things are going to happen there. The project is really the best in town. And certainly, the users coming in are recognizing that as they use it. Steven Roth: You have to remember, this asset, which we are partners with Blackstone and Hudson Pacific is kind of analogous to a long-stay hotel. So this is not an office building, which has 10- and 20- and 30-year leases. The tenants that come into this building and use it as a production facility for shows that are in process, so that can be 3 months or a year or what have you. So the occupancy will fluctuate. But we do feel we have a unique asset. It's the only asset in Manhattan. It's very well-located, and it's being extremely well received even at these early stages by all of the -- I say, all of the big boys. Operator: The next question comes from Anthony Paolone with JPMorgan. Anthony Paolone: On 350 Park, you mentioned going to the maximum 36% stake in the project. Can you talk about what that means in terms of any incremental outlays for Vornado or just how that works? Steven Roth: Michael? Michael Franco: Anthony, so look, we'll lay out all the details when we close the venture in terms of cost, financing, et cetera. Steve referenced the construction financing that we've lined up. We're contributing our land in at the $900 million value. And so incremental capital requirements from us over time are in the $300 million, $350 million neighborhood. That doesn't really start for probably 2.5, maybe even 3 years in any significant scale given that Ken has to true up his equity with ours and then the bank wants to get money out. We like that environment. The banks want to start putting money out. So our equity is back ended and really won't come, I would say, meaningfully until 2029 and then thereafter. Anthony Paolone: Okay. Got it. And then just on -- in terms of -- just you mentioned, I think, Steve, just that kind of a project putting on umbrella over the rest of the assets around there over time. And it seems like your base is going to probably be over $3,000 a foot. And the presumption is you lease it up and it's worth, I guess, something north of $4,000 plus a square foot. How do you think about just that gap between a number like that and buying something around the corner effectively at $950 a foot. Like is that dispersion? Does it make sense? I get the difference in age and asset, but is carried land just as interesting an investment at this point than the bet at $4,000-plus a foot on a pro forma stabilized basis. Steven Roth: We would buy 100% of Park Avenue at $1,000 a foot if we could. Michael Franco: Anthony, you're making the case for exactly what Steve said earlier, right, that, that dispersion is very wide, that buildings like Park Avenue Plaza, if the market continues to hold its strength, and we know there's not going to be a lot of supply, those buildings have to appreciate significantly. And we own many of those buildings, which is why we're bullish on our stock and the value that we have and where it's going. So 100%. Rents have to rise there, values have to appreciate meaningfully because they're basically trading at land value in a lot of cases. Steven Roth: But don't get the impression that the people who are paying $250 or $75 or $300 a foot are stupid. They are not stupid. They are the most important and largest and major companies in the country. There is a difference in the value of a brand-new building in its design and its function. So -- but the answer is it's not the difference between $100 a foot and $300 a foot. So the $100-a-foot buildings are going to go up in value substantially, but not to the same rental rate as a new building would command. Operator: The next question comes from Vikram Malhotra with Mizuho. Vikram Malhotra: Congrats on a strong quarter. I guess just first question, given the strength in the future direction in terms of FFO and the pickup, you mentioned some of it is coming in '26. I'm wondering if you can just maybe give us a little bit more color on how that translates into cash earnings, like relative to this year's TI bill, what could the TI maintenance CapEx bill look like for next year, just high level? And related to that, any sense of where we are in terms of TIs coming in after the market has strengthened? Michael Franco: I'll hit the first one and Glen can hit the second. I think in terms of TIs this year versus next year, I mean, again, given we're in that lease-up mode, given frankly, when the tenants call for the money, I don't have the numbers right in front of me, Vikram, but I think it's pretty comparable year-over-year. So not meaningfully different enough that, that would change. I think in '28 is when that starts to tail down as we're through that big leasing. But again, it depends on when tenants call for the money, it tends to be a little bit later than when we normally expect. So that's my commentary on the capital side. Glen, do you want to just talk about TI trends? Glen Weiss: Vikram, so we're seeing concessions come down. Rents are going up. We're tightening concessions. I've said on a couple of calls in a row now, free rents coming down, and we're now seeing tightening on the TIs. Certainly, anything we're turnkey now has a cap on the tenant fund. So overall, I would tell you, all the metrics are trending absolutely in the landlord's direction, which is very good for us and we continue that -- we expect that to continue as we go as the market continues to get better and better. Vikram Malhotra: And then maybe just a bigger, broader question. Clearly, New York is at a place where we're all talking upside to rents and mark-to-market positive. San Fran is still sort of in maybe perhaps occupancy recovery mode. I'm just wondering future capital allocation for Vornado, if you were putting in new capital today, like how do you differentiate and assess sort of opportunities in New York versus San Fran? Like where should we expect kind of a better risk-reward at this point? Steven Roth: We love San Francisco. It's a recovering market. The interesting thing about it is we own the best building in San Francisco, differentiated. It's not a tech building per se, although we do have a few tech tenants. It's a financial services building. All of the major financial services players are in that building. And notwithstanding the fact that vacancies grew to very high numbers in San Francisco and rents plummeted, that building, 555 California, the rents went up and occupancy stayed by and large, pretty high. Now with respect to New York and capital allocation, I mean, look at what we've done in the past as a prelude to what we'll do in the future. We have invested in 2 or 3 new acquisitions. We invest in our existing buildings by leasing them up in the TI and in keeping them modern and pristine and ahead of the market. We invest in our buildings in terms of amenities. We invest in our stock. So we're investing in new acquisitions, our existing assets, our common stock and, of course, the PENN District. So we have a very full plate. Michael Franco: But at the same time, bringing down leverage while doing that. Steven Roth: Yes. How did you do that? Michael Franco: A little sleight of hand now, asset sales, et cetera, and we're growing income. Steven Roth: By the way, our budgets show that after the bubble, the good bubble of this very large leasing period is over and the free rent burns off and the TIs are paid, our financials become extraordinary. Our positive cash flow becomes -- well, our cash flow becomes positive and grows fairly significantly. So there's a 1- or 2-year period, and then there's a very, very, very -- we're very, very constructive about our company in the future years. That's why when I say we look at the future NAV harder even than we look at the current NAV. Operator: The next question comes from Seth Bergey with Citi. Seth Bergey: Just wanted to circle back on 350 Park Avenue. You mentioned the partial sale. Can you just broadly talk about given kind of the improvement in New York fundamentals, what the buyer pool looks like for that? What type of money is interested in investing in New York office today? Steven Roth: Michael is going to -- I think you asked about the mention that I made that we were contemplating selling down 25% of the ownership of the building and inviting a new group of investors to come into the asset now -- and so what's your question about that? Seth Bergey: Yes. Just are you seeing -- is it core money that's interested in office opportunistic, sovereign? Just talk about kind of the interest from the different buyer pools in New York office real estate. Steven Roth: We're basically targeting high net worth family offices. And it would be a club deal, not a -- so it would be a club deal, people investing $100 million or maybe $200 million, not $1 billion. That's our current target. Seth Bergey: Great. And then maybe just a follow-up. With kind of the new pied-a-terre tax in New York, are you seeing any impact on that for high-street retail leasing? Steven Roth: Not at all. We don't expect that, that's going to affect shopping or tourism or domestic spending or whatever. So the answer to that is not at all. What we -- and by the way, we're not really in that business. I mean we don't have a current condo job under construction, although we have developed the most successful one in history, that's in the past. And that's sold out, by the way. We do hear from the marketplace that the tax has affected the interest of buyers in the over $10 million category. But that's not first half, that's second and third hand from just gossip that I'm hearing from the marketplace. Operator: The next question comes from Ronald Kamdem with Morgan Stanley. Ronald Kamdem: Great. Just 2 quick ones. One, and this came up earlier, just on a high level, I think you touched on just maintaining leverage. You touched on sort of CapEx. I was just wondering if you could just put a point on it in terms of like what the model says leverage looks like as sort of EBITDA comes on as well as what the CapEx trajectory looks like. Michael Franco: Ronald, the quick reading your report, it sounds like we have a fairly wide disparity on NAV viewpoints. CapEx, I think I said earlier, I think it's going to be fairly consistent this year to next year just as the large amount of leases, particularly at PENN 2 and the remainder of PENN 1 get funded. Even a lot of the leases that get signed this year, that won't get funded until next year and maybe even [ slobers ] over a little bit to '28. But I think fairly consistent year-over-year. And on the leverage side, I think we'll continue to trend down into the 7s over the course of this year. And as the income comes online in the out years, obviously, there's a lot that's going to happen between now and then, but that number could go sub-7. We think it probably will go sub-7 absent other investing, et cetera. Ronald Kamdem: Great. Helpful. And then I think you mentioned sort of 2 nonessential sales. I was just wondering, I think in the past, whether it was Hotel PENN or some of the retail assets. Just any thoughts on transacting on those? Steven Roth: No, it's not Hotel Penn. Hotel Penn doesn't exist anymore. By the way, it's a piece of land, which we consider to be the best development site in the West Side of Manhattan. That's not for sale. Operator: The next question comes from Caitlin Burrows with Goldman Sachs. Caitlin Burrows: Maybe a follow-up to that last one, just on the planned asset sales, whatever they may be as we try to figure out the impact of them, those 2 properties, would you say they're more in the noncore bucket, i.e., potentially higher cap rate or in the bucket of crystallizing private market valuations, i.e., lower cap rate or some combination? Steven Roth: One and one. Caitlin Burrows: Got it. Okay. And you mentioned earlier that part of the intent has been you can keep that dry powder for offense. I guess, could you talk about your outlook for those opportunities to come up? I realize you don't have a crystal ball, but is there a reason to think that more acquisition opportunities could continue to come up? Or is it too hard to tell at this point? Steven Roth: The answer is we react to everything that's available in the marketplace, and we move quickly to acquire an asset that we like. Our assets -- the assets that we like have to be basically in our core. They have to be on the best locations. They have to be part of the 180 million square feet that we feel is our target market, the market in which our clients want the rent space, and they have to be moneymakers. So when we see it, we act. And we can't predict. We don't have a crystal ball, but we do know that there are cycles. There are cycles and when to invest heavily and there are cycles and when to pull back. And so we've been doing this for a long time, and that's our outlook on acquisitions. Operator: The next question comes... Steven Roth: By the way, the other side of that is that trees don't grow the sky. We do have business cycles. I don't know whether we're going to have another recession or downturn. I guess we will. It's been a long time since we've had a downturn, but there will be a downturn in the future, and we have to be prepared for it. Now you can't prepare for -- when the downturn starts, it's too late. You have to be prepared for it ahead. And so that's what we try to do, and we've had -- as we always try to do. And keeping a very strong balance sheet with a ton of cash is part of our long-time business strategy. Operator: The next question comes from Brendan Lynch with Barclays. Brendan Lynch: Steve, in the past, you mentioned that you're open to selling 555 California and the MART. Can you give us an update on where your considerations currently stand? And are those the 2 assets that you referenced earlier about being for sale? Steven Roth: Those 2 assets are not the 2 assets, might be one of them. But I can tell you that right now, 555 California is a strong recovery market, and Glen has done a spectacular job of leasing this market at the topic prices in San Francisco in the high $100s of dollars a foot in the tower. So that asset has plenty of room to go and is extremely strong. So that asset is only for sale at the right time and at the right price. Brendan Lynch: Any commentary on the MART? Steven Roth: No. Brendan Lynch: Okay. Maybe just another topic on signage. Is there a limit to how much signage you can add to the PENN District? And I see that signage is up 5% year-over-year. Is that mostly volume? Or are you pushing price more aggressively? Steven Roth: I'll start and then Michael can finish. Basically, the thing that differentiates our signage business is that our signs go with the buildings that we own. So we are -- almost all of the people in this sector, the signage companies they rent space to put their signs. We don't. We own the space. So our margins obviously are much higher. And since we own the prime space in Times Square, and we own everything in the PENN District, where there's enormous traffic both from Madison Square Garden and the retail at Macy's and Penn Station. So we own those assets. And so as we continue to develop in the PENN District, we will build more buildings. We're now totally changing the entrance of the Penn District on Seventh Avenue and 34th Street. So we're building -- we're going to tear down the older buildings. We're going to build new buildings. Those are signage opportunities. We're going to build the tower on PENN 15. That's another signage opportunity, et cetera. So the answer is that we love the business. It's asset-light. It goes along with our new signs go along with our new developments. Michael Franco: Just to tack on, Brendan, as volume or price, both. The pricing has continued to go up year-over-year for the last several years. And part of what we do by having digital signs is we slice and dice those, and we -- it's like revenue management, right? We're optimizing how many slots we can sell and how much we can sell those for. So we have both dynamics working, which is helping to propel the business, and you saw that come through this quarter. Operator: The next question comes from Steve Sakwa with Evercore ISI. Steve Sakwa: Just one quick follow-up. On that SNO pipeline number that you gave of $180 million, is there a way to bifurcate that between what's PENN 2 and what's the rest of the portfolio? Michael Franco: I know you weren't going to let us off so easy, Steve, about a numbers question. I would say I'm going to guess here because I don't have the exact numbers in front of me. Obviously, look, PENN 2 is a huge development that we're completing and that income is coming online. So if I had to guess, I would say probably 60% of it is PENN 2, rough cut. Steven Roth: That guess better to be right. Michael Franco: Yes, I think it's pretty close. Operator: There are no further questions at this time. Steven Roth: Okay. Well, thank you, everybody. We're very -- we're happy with this quarter. We hope you all appreciate it. And we're even more happy with our future prospects. So having said that, thank you all for attending, and we'll see you next quarter. Operator: Ladies and gentlemen, this concludes today's conference. Thank you for your participation. You may now disconnect. Before you buy stock in Vornado Realty Trust, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Vornado Realty Trust wasn’t one of them. The 10 stocks that made the cut are built for long-term growth and could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $411,427!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,335,252!* That performance is why people listen. With a track record of beating the S&P 500 by 4x, Stock Advisor offers a distinct advantage. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built for the long haul. See the 10 stocks » *Stock Advisor returns as of August 11, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Vornado (VNO) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

Interested in Vornado Realty Trust? Here are five stocks we like better. Comparable FFO rose to $0.67 per share in Q2 from $0.56 a year earlier, beating consensus by $0.10, driven by PENN District lease commencements, stronger signage revenue and improved New York operations. Manhattan leasing momentum accelerated, with New York office occupancy reaching 92.2% and management forecasting more than 93% by year-end. Vornado cited nearly 2.2 million square feet of leases under negotiation and expects a broad-based “landlord’s market.” Management expects 2026 comparable FFO to exceed 2025 levels and significant additional growth in 2027 as leases commence. Vornado ended the quarter with $2 billion of liquidity, repurchased 1.8 million shares, and is pursuing asset sales to preserve investment capacity. Three Oversold REITs With Strong Fundamentals Vornado Realty Trust (NYSE:VNO) reported second-quarter comparable funds from operations of $0.67 per share, up from $0.56 a year earlier, as lease commencements at its PENN District properties, stronger signage revenue and improved New York operations contributed to results. Chairman and Chief Executive Officer Steven Roth said the company exceeded analyst consensus by $0.10 per share and described Manhattan office conditions as increasingly favorable to landlords. He pointed to strong leasing activity, declining availability of large office blocks and limited future supply in the market. → No Hangover: Revisiting Microsoft One Week After Earnings Attention Income Investors: This REIT Is on Sale “The landlord's market that we've been predicting for the past many quarters is here,” Roth said. “It is broad-based and it is strengthening.” During the first half of 2026, Vornado leased 978,000 square feet across its portfolio. Manhattan office leasing totaled 659,000 square feet at average starting rents of $105 per square foot, with positive mark-to-market changes of 9.5% on a GAAP basis and 7.1% on a cash basis. → MarketBeat Week in Review – 08/03 - 08/07 5 top office REITs to buy now In the second quarter, the company completed 29 Manhattan office leases covering 328,000 square feet at average starting rents of $107 per square foot. Leasing included 181,000 square feet in the PENN District and 167,000 square feet in Vornado’s other Manhattan properties. Roth said PENN 2 had 67,000 square feet of leases out for signature and that management expects the property to be “fully leased here down to dribs and drabs by year-end.” At PENN 1, the company had 246,000 square feet of leases out for signature at an average mark-to-market increase of 44%. → Why the Landlord of the AI Boom Could Outlast the Chipmakers President and Chief Financial Officer Michael Franco said New York office occupancy rose 60 basis points from the prior quarter to 92.2%, compared with a trough of 84.4% in the first quarter of 2025. The company expects occupancy to exceed 93% by year-end, with further gains thereafter. Vornado’s New York office pipeline included more than 2.2 million square feet of leases under negotiation at various stages, including Citadel’s planned 1 million-square-foot lease at 350 Park Avenue and more than 500,000 square feet in the PENN District. Franco said physical office occupancy has historically operated in the 95% to 96% range. Economic occupancy, however, remains lower because of signed leases that have not yet commenced. Roth said the company has approximately $180 million of revenue from signed but not-yet-commenced leases, representing more than $150 million of FFO. Franco attributed the year-over-year increase in comparable FFO primarily to lease commencements at PENN 1 and PENN 2, the prior-year impact of the NYU master lease at 770 Broadway, and higher signage revenue. Higher net interest expense partially offset those gains. New York office same-store net operating income rose 13.7% on a GAAP basis and 11.9% on a cash basis. New York retail same-store NOI increased 7.3% on a GAAP basis and 5.7% on a cash basis. Across the company’s New York business, same-store NOI was up 11.9% on a GAAP basis and 6.2% on a cash basis. Management said it now expects full-year 2026 comparable FFO to exceed 2025 levels, with the second-quarter result serving as a “decent average run rate” for the remainder of the year. Franco also said the company continues to anticipate significant earnings growth in 2027 as leases commence at PENN 1, PENN 2 and other vacant space, and as the Park Avenue Plaza acquisition contributes. Discussing tenant-improvement costs and concessions, Executive Vice President of Office Leasing and Co-Head of Real Estate Glen Weiss said rents are rising while concessions are tightening. “Free rents [are] coming down, and we're now seeing tightening on the TIs,” Weiss said. Roth highlighted Vornado’s recent investments in 623 Fifth Avenue and Park Avenue Plaza. The company is redeveloping the 383,000-square-foot 623 Fifth Avenue property, located above Saks Fifth Avenue, into boutique office space. Roth said Vornado was preparing to execute its first lease at the building, covering two floors for a financial-services firm at rents consistent with underwriting, while early demand supported higher asking rents. Vornado also acquired a half interest in Park Avenue Plaza alongside Fisher Brothers. Roth said the 1.2 million-square-foot tower was valued at $950 per square foot in the transaction and has a 2.9% in-place mortgage with six years remaining. He said existing leases at the building are approximately half of current market rents. The company also plans to exercise its option to increase its interest in the 350 Park Avenue development to 36%. The project includes Ken Griffin as a 60% partner and Citadel as its 1 million-square-foot anchor tenant. Roth said a joint-venture closing is expected in September. Franco said Vornado’s incremental capital requirements for the project are expected to be in the range of $300 million to $350 million over time, with meaningful contributions not expected until 2029 or later. The partnership has arranged a $3.3 billion construction loan, according to Roth. Management said the partnership is also considering selling a 25% interest in the project to high-net-worth family offices through a club-style investment structure. Vornado ended the quarter with $2 billion of liquidity, consisting of $789 million of cash and $1.2 billion of undrawn credit lines. Management said it is in discussions to sell two non-essential assets, with one characterized as non-core and the other as an asset where the company could crystallize private-market value. Roth said proceeds from potential sales would strengthen the company’s liquidity while preserving dry powder for acquisitions and other investments. He added that the company intends to maintain a strong balance sheet in preparation for future market downturns. During the quarter, Vornado repurchased 1.8 million shares at an average price of $29.92 per share. Since beginning its buyback program in 2023, the company has repurchased 8 million shares at an average price of $26.61 per share. Vornado’s signage business in Times Square and the PENN District continued to grow, with Roth describing it as a capital-light business that has increased at roughly 5% annually. Franco said both pricing and volume have contributed to growth as the company uses digital signage to optimize advertising inventory. Vornado Realty Trust is a self‐administered real estate investment trust focused on the ownership, management and redevelopment of office and retail properties. As a fully integrated REIT, the company oversees leasing, property management, building operations and strategic capital improvements designed to enhance asset value and tenant experience. Vornado's business model emphasizes long‐term cash flow generation through stable rental income and disciplined portfolio optimization. The company's core portfolio is concentrated in New York City, where it holds a diverse mix of office towers and street‐level retail assets in prominent submarkets such as Midtown and the Penn Plaza corridor. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Vornado Realty Trust Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

Interested in Alexander's, Inc.? Here are five stocks we like better. Vornado’s comparable FFO rose to $0.67 per share in the second quarter from $0.56 a year earlier, beating consensus by $0.10, driven by PENN District leasing, higher signage revenue and stronger New York office and retail performance. New York office occupancy and leasing improved significantly: occupancy reached 92.2%, while first-half Manhattan office leasing totaled 659,000 square feet with positive mark-to-market gains. Management expects occupancy to exceed 93% by the end of 2026 and PENN 2 to be effectively fully leased by year-end. Management raised its outlook for 2026 and expects further growth in 2027 as signed leases commence and Park Avenue Plaza contributes. Vornado reported $2 billion in liquidity, plans to sell two nonessential assets, and repurchased 1.8 million shares during the quarter. Vornado Realty Trust reported second-quarter comparable funds from operations of $0.67 per share, up from $0.56 a year earlier, as leasing gains at its PENN District properties, signage revenue and New York office and retail performance contributed to growth. Chairman and Chief Executive Officer Steven Roth said the company’s comparable FFO exceeded analyst consensus by $0.10 per share. President and Chief Financial Officer Michael Franco said the year-over-year increase was driven primarily by rent from PENN 2, the absence of a prior-year effect related to New York University’s master lease at 770 Broadway, and higher signage revenue, partly offset by increased net interest expense. → SpaceX’s First Earnings Report Could Decide Whether Shorts or Bulls Have Control Vornado said its New York office same-store net operating income increased 13.7% under GAAP and 11.9% on a cash basis from the prior-year quarter. New York retail same-store NOI rose 7.3% on a GAAP basis and 5.7% on a cash basis. The company’s New York office occupancy rose 60 basis points sequentially to 92.2%, compared with a trough of 84.4% in the first quarter of 2025. Franco said Vornado expects occupancy to exceed 93% by the end of 2026, with additional gains thereafter. Historically, the company has operated at physical occupancy of roughly 95% to 96%, he said. → Financials Hit Record Highs as the AI Trade Unravels—Can They Keep Leading? During the first half of 2026, Vornado leased 978,000 square feet overall. Manhattan office leasing totaled 659,000 square feet at average starting rents of $105 per square foot, with positive mark-to-market changes of 9.5% under GAAP and 7.1% on a cash basis. For the second quarter, Vornado completed 29 Manhattan office leases totaling 328,000 square feet, at average starting rents of $107 per square foot. Those leases included 181,000 square feet in the PENN District and 167,000 square feet elsewhere in Manhattan. → Why Rare Earth Processing Could Be the Real 2027 Opportunity Roth said the company has 67,000 square feet of leases out for signature at PENN 2 and expects the property to be effectively fully leased by year-end. At PENN 1, Vornado has 246,000 square feet of leases out for signature, with an average mark-to-market increase of 44%, he said. The company projected third-quarter companywide mark-to-market increases of more than 20%. Franco said signed but not yet commenced leases represent approximately $180 million of revenue and more than $150 million of FFO. He estimated that roughly 60% of that signed-but-not-commenced pipeline is related to PENN 2. Roth described Manhattan’s Class A office market as increasingly landlord-favorable, citing rising leasing activity, shrinking availability and limited supply of large office blocks. He said office leasing volume in Manhattan is at its highest level in 25 years and that vacancy in the 180 million-square-foot Class A market in which Vornado competes has declined to 6.2%. He also said new office development can take as long as five years to deliver and requires rents of roughly $300 per square foot to support construction economics. During the question-and-answer session, Roth said new buildings on Park Avenue may require rents in the mid- to high-$200s per square foot, with anchor tenants sometimes receiving lower rents than subsequent tenants. Executive Vice President and Co-Head of Real Estate and Office Leasing Glen Weiss said Vornado’s office pipeline includes more than 2.2 million square feet in various stages of negotiation and proposal, including Citadel’s planned 1 million-square-foot lease at 350 Park Avenue and more than 500,000 square feet in the PENN District. Weiss said the company is seeing concessions decline, rents rise and tenant-improvement allowances tighten. Vornado said demolition is underway at its 350 Park Avenue site. Roth said the company intends to exercise an option to invest at its maximum 36% ownership level in the planned joint venture with Ken Griffin, who will hold a 60% interest, and Citadel, the project’s 1 million-square-foot anchor tenant. Franco said Vornado’s incremental equity requirements for the project are expected to be approximately $300 million to $350 million over time. He said meaningful equity contributions are not expected for roughly two and a half to three years, with the company’s contribution likely becoming more substantial in 2029 and thereafter. The project has a $3.3 billion construction loan arranged, according to Roth, and the venture closing is expected in September. Management also discussed two recent acquisitions: 623 Fifth Avenue and Park Avenue Plaza. Roth said Vornado is redeveloping 623 Fifth Avenue, a 383,000-square-foot property above Saks Fifth Avenue, into boutique office space and is preparing to execute its first lease there with a financial services firm for two floors at rents consistent with underwriting. For Park Avenue Plaza, where Vornado acquired a half interest with Fisher Brothers, Roth said the transaction valued the 1.2 million-square-foot tower at $950 per square foot. He said in-place leases are at about half of current market rents, which management believes provides potential for future appreciation and earnings growth. Franco said Vornado now expects full-year 2026 comparable FFO to exceed 2025 levels, with the second-quarter result serving as “a decent average run rate” for the rest of the year. He added that management still expects significant earnings growth in 2027 as leases at PENN 1, PENN 2 and other vacant space commence, along with contributions from Park Avenue Plaza. Vornado reported liquidity of $2 billion, including $789 million of cash and $1.2 billion of undrawn credit facilities. Roth said the company is in discussions to sell two nonessential assets, while Franco said one potential sale would be in a non-core category and another would be aimed at crystallizing private-market value. The company repurchased 1.8 million shares during the quarter at an average price of $29.92 per share. Since beginning its repurchase program in 2023, Vornado has bought back 8 million shares at an average price of $26.61 per share. Roth said Vornado plans to maintain liquidity for both investment opportunities and potential market downturns, while continuing to invest in its existing portfolio, acquisitions, development projects and share repurchases. Alexander's (NYSE: ALX) is a publicly traded real estate investment trust focused on owning, leasing and managing commercial properties in the New York metropolitan area. The company's portfolio encompasses office buildings, retail storefronts and parking facilities, all held on a wholly owned basis. By concentrating on prime urban and suburban locations, Alexander's seeks to generate stable rental income and long-term asset appreciation. Founded in 1928 as a family-run department store chain, Alexander's transitioned during the early 1990s into a pure-play real estate company following the sale of its retail operations. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Alexander's Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Management asserts that a broad-based landlord's market has arrived in Manhattan, characterized by a 25-year high in leasing volume and a critical shortage of large-block Class A space. Performance is being driven by the physical and aesthetic transformation of PENN 1 and PENN 2, where the company is achieving rents nearly double those of legacy leases. The company is pivoting toward a 'starting rent' metric for new leases over 'mark-to-market' to better reflect current market strength, noting consistent triple-digit starting rents in Manhattan. Strategic acquisitions like 623 Fifth Avenue and Park Avenue Plaza are positioned to capture value from the widening gap between replacement costs and current market pricing. The 350 Park Avenue development is framed as a superior alternative to maintaining a 65-year-old building, with the new tower expected to command 'stratospheric' rents that justify demolition. Management attributes the company's outperformance to a singular focus on high-quality Manhattan assets that are benefiting from diverse tenant demand across legal, tech, and AI sectors. Full-year 2026 comparable FFO is expected to exceed 2025 levels, with the second quarter serving as a baseline run rate for the remainder of the year. Significant earnings growth is projected for 2027 as free rent periods burn off and the full economic impact of the PENN District lease-up commences. Occupancy is forecasted to reach north of 93% by year-end 2026, supported by a 2.2 million square foot leasing pipeline. The company plans to exercise its 36% investment option for the 350 Park Avenue project alongside Citadel, with a $3.3 billion construction loan anticipated to close in September. Management expects continued upward pressure on rents for well-located older buildings as new supply requires rents upwards of $300 per square foot to be viable. The company is actively in conversations to sell two nonessential assets to further bolster liquidity and support its defensive and offensive strategies. Vornado continues its share buyback program, having repurchased 8 million shares since 2023 at an average price of $26.61, citing a significant discount to NAV. The signage business is highlighted as a high-margin, capital-light growth driver, with plans to expand digital inventory across the PENN District. Management acknowledges the inevitability of future business cycles but emphasizes maintaining a strong balance sheet with $2 billion in current liquidity to weather potential downturns. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Physical occupancy is currently at 92.2% with a goal to return to historical levels of 95-96% within the next couple of years. The 'signed-but-not-commenced' (SNO) pipeline represents approximately $180 million in future revenue that is not yet reflected in earnings. Management declined suggestions to 'take the money and run,' stating that investing in Prime Park Avenue with an anchor tenant already committed is the best use of capital. The partnership is contemplating selling a 25% interest to high-net-worth family offices to crystallize profit while maintaining a significant stake. Concessions are tightening and free rent periods are shortening as the market shifts in favor of landlords. CapEx is expected to remain consistent through 2027 due to the funding of major leases at PENN 2 before tailing off in 2028. Management clarified that 555 California and the MART are not the two 'nonessential' assets currently for sale, though they remain open to selling at the 'right price.' The two assets currently under negotiation include one non-core asset and one intended to crystallize private market valuation.

This article first appeared on GuruFocus. Comparable FFO: $0.67 per share for Q2 2026, up from $0.56 per share in Q2 2025, an increase of $0.11. New York Office Same-Store NOI: Up 13.7% on a GAAP basis and 11.9% on a cash basis. New York Retail Same-Store NOI: Up 7.3% on a GAAP basis and 5.7% on a cash basis. New York Business Overall Same-Store NOI: Up 11.9% on a GAAP basis and 6.2% on a cash basis. New York Office Occupancy: Increased 60 basis points quarter-over-quarter to 92.2%, up from 84.4% in Q1 2025. Manhattan Office Leasing Volume (Q2): 29 deals totaling 348,000 square feet at an average starting rent of $107 per square foot, with mark-to-markets of positive 7.7% GAAP and positive 5.0% cash. Manhattan Office Leasing Volume (H1 2026): 659,000 square feet at $105 per square foot average starting rents, with mark-to-markets of positive 9.5% GAAP and positive 7.1% cash. Total Leasing Volume (H1 2026): 978,000 square feet overall. Stock Buyback: Repurchased 1.8 million shares at $29.92 per share in Q2 2026; 8 million shares at $26.61 per share since 2023. Liquidity: $2 billion, comprising $789 million in cash and $1.2 billion in undrawn credit lines. Warning! GuruFocus has detected 9 Warning Signs with VNO. Is VNO fairly valued? Test your thesis with our free DCF calculator. Release Date: August 04, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Vornado Realty Trust (NYSE:VNO) reported strong second-quarter comparable FFO of $0.67 per share, beating analyst consensus by $0.10 or 17.5%. New York office occupancy increased 60 basis points to 92.2%, up significantly from the trough of 84.4% in Q1 2025, with expectations to grow to north of 93% by year-end. The company is achieving industry-leading average starting rents of $107 per square foot in Manhattan, with strong mark-to-market growth of positive 7.7% GAAP and positive 5.0% cash. Vornado Realty Trust (NYSE:VNO) has a robust leasing pipeline of over 2.2 million square feet in negotiation, including the 1 million square foot Citadel lease at 350 Park Avenue. The company maintains a strong balance sheet with $2 billion in liquidity and is in conversations to sell two non-essential assets to further bolster its financial position. Management expects significant earnings growth in 2027, driven by the lease-up of Penn 1 and Penn 2, other vacancies, and the recent acquisition of Park Avenue Plaza. Vornado Realty Trust (NYSE:VNO) faces higher net interest expense, which partially offset the positive FFO growth in the second quarter. The company's stock trades at a 23% NAV discount according to Green Street, indicating the market does not fully value its assets. Interest rates are rising, which could increase financing costs and potentially impact the feasibility of new development projects. The company's signed but not occupied leases represent $180 million in revenue that has not yet commenced, creating a delay in realizing full earnings potential. Vornado Realty Trust (NYSE:VNO) expects capital expenditures for tenant improvements to remain consistent year-over-year, with a meaningful tail-down not expected until 2028. The company's Pier 94 occupancy dropped quarter-over-quarter due to vacates at the end of June, though it has since recovered to the high 80s. Q: Can you discuss the gap between leased and economic occupancy today, where peak physical or economic occupancy was in the past, and how much more runway there is?A: Michael Franco (President and CFO) stated that historically, Vornado ran at 95%-96% occupancy on a physical basis. Currently, the company is at 92.2%, and expects to return to its historical run rate within the next couple of years, potentially sooner given the market's pace. On a GAAP basis, which relates more directly to earnings, the company is at roughly 83%-84%. Steven Roth (Chairman and CEO) added that the signed-but-not-commenced leases represent $180 million in rents, or roughly $150 million in FFO, which is essentially "in the bag" and will flow through as leases commence. Q: Given the strength in FFO and the pickup you mentioned, how does that translate into cash earnings, and what could the TI and maintenance CapEx bill look like for next year?A: Michael Franco (President and CFO) indicated that TI spending this year versus next year is expected to be fairly comparable, as the company is still in a lease-up mode. He noted that '28 is when TI spending starts to tail down as the big leasing wave concludes. Glen Weiss (Executive Vice President - Office Leasing) added that concessions are coming down, rents are going up, and free rent periods are shortening. He noted that all metrics are trending in the landlord's direction, with turnkey deals now having caps on tenant funds. Q: On 350 Park Avenue, you mentioned going to the maximum 36% stake. Can you talk about what that means in terms of any incremental outlays for Vornado?A: Michael Franco (President and CFO) explained that the company will lay out all details when the venture closes in September. Vornado is contributing its land at a $900 million valuation. Incremental capital requirements from Vornado over time are in the $350 million neighborhood, but that doesn't start for probably 2.5 to 3 years in any significant scale. The equity is backended and won't come meaningfully until 2029 and thereafter, given that Ken Griffin has to true up his equity first and the bank wants to start putting money out. Q: The rents required to make 350 Park Avenue pencil out suggest you're going to rent that building at around $350 a square foot. What kind of impact will having these really high-end properties do to adjacent or nearby buildings, like Park Avenue Plaza?A: Steven Roth (Chairman and CEO) stated that the high rents on new buildings will create an "umbrella" over all the older buildings with in-place rents of less than that. Park Avenue Plaza has rents of about a third of that level. The combination of scarcity, expanding tenants, limited new supply, and high construction costs and interest rates will cause well-located older buildings to go up in value enormously. This is precisely the reason Vornado acquired Park Avenue Plaza. He emphasized that while there is a difference in value between a brand-new building and an older one, it's not the difference between $100 a foot and $300 a foot, so the lower-rent buildings will appreciate substantially. Q: You mentioned the stock remains cheap and well below NAV estimates. Can you talk about whether you're still interested in taking assets to market to test private market bids and using those funds to take advantage of the disconnect?A: Steven Roth (Chairman and CEO) confirmed the company is in conversations to sell two buildings, the proceeds of which would be a very significant cash amount. He noted that history in New York shows that almost every time you sell a building, you've been wrong, so the company is selective. Regarding the stock, he believes it's extremely cheap. He noted that NAV calculations are static and backward-looking, giving no credit for future value creation from deals like 350 Park Avenue, Park Avenue Plaza, or 628 Sixth Avenue. The company looks at future NAV harder than current NAV. Q: On the last couple of calls, you've talked about a $0.40 FFO uplift in '27. Does that number still apply, or has some of that FFO shifted into '26?A: Michael Franco (President and CFO) clarified that the $0.40 was relative to a flattish comment made at the beginning of the year. With the company significantly outperforming that, some of the growth is occurring earlier this year. However, the comment on significant growth still to come in '27 remains intact. Given the current dynamics, the company hopes there will be an excess of that $0.40 number. Q: The retail leasing had a nice pickup, but the lease term was pretty short. Is that a strategy to do more short-term activation as you plan larger retail redevelopment?A: Michael Franco (President and CFO) explained that the short-term deals were a mix of in-place tenant extensions and short-term deals where the company doesn't want to lock up space. The company views the market as getting stronger and doesn't want to commit to space long-term until it reaches an appropriate level. Some tenants also need more time to decide on their commitment length. Q: On 350 Park Avenue, you mentioned a partial sale. Given the improvement in New York fundamentals, what does the buyer pool look like for that, and what type of money is interested in investing in New York office today?A: Steven Roth (Chairman and CEO) stated that the company is targeting high net worth family offices for the 25% sell-down. It would be a "club deal" with people investing $100 million or maybe $200 million each, not a billion-dollar single investment. This is the current target for the partial interest sale. Q: You mentioned two non-essential asset sales. Would you say they're more in the non-core bucket, i.e., potentially higher cap rate, or in the bucket of crystallizing private market valuations, i.e., lower cap rate?A: Steven Roth (Chairman and CEO) responded succinctly, "One and one," indicating that one asset falls into each category. One sale would be a non-core asset at a potentially higher cap rate, while the other would be crystallizing private market valuations at a lower cap rate. Q: On the signage business, is there a limit to how much signage you can add to the Penn District, and is the 5% growth mostly volume or are you pushing price more aggressively?A: Steven Roth (Chairman and CEO) explained that Vornado's For the complete transcript of the earnings call, please refer to the full earnings call transcript.

NEW YORK, Aug. 03, 2026 (GLOBE NEWSWIRE) -- Vornado Realty Trust (NYSE: VNO) reported today: Quarter Ended June 30, 2026 Financial Results NET INCOME attributable to common shareholders for the quarter ended June 30, 2026 was $16,434,000, or $0.08 per diluted share, compared to $743,819,000, or $3.70 per diluted share, for the prior year's quarter. The decrease is primarily due to the $803,248,000 gain related to the 770 Broadway master lease with New York University ("NYU") during the three months ended June 30, 2025. FUNDS FROM OPERATIONS ("FFO") attributable to common shareholders plus assumed conversions (non-GAAP) for the quarter ended June 30, 2026 was $144,078,000, or $0.74 per diluted share, compared to $120,928,000, or $0.60 per diluted share, for the prior year's quarter. Adjusting for the items that impact period-to-period comparability listed in the table on the following page, FFO attributable to common shareholders plus assumed conversions, as adjusted (non-GAAP) for the quarter ended June 30, 2026 was $131,073,000, or $0.67 per diluted share, and $113,324,000, or $0.56 per diluted share, for the prior year's quarter. Six Months Ended June 30, 2026 Financial Results NET LOSS attributable to common shareholders for the six months ended June 30, 2026 was $6,408,000, or $0.03 per diluted share, compared to net income attributable to common shareholders of $830,661,000, or $4.14 per diluted share, for the six months ended June 30, 2025. The decrease is primarily due to the $803,248,000 gain related to the 770 Broadway master lease with NYU during the six months ended June 30, 2025. FFO attributable to common shareholders plus assumed conversions (non-GAAP) for the six months ended June 30, 2026 was $240,391,000, or $1.22 per diluted share, compared to $256,028,000, or $1.27 per diluted share, for the six months ended June 30, 2025. Adjusting for the items that impact period-to-period comparability listed in the table on the following page, FFO attributable to common shareholders plus assumed conversions, as adjusted (non-GAAP) for the six months ended June 30, 2026 was $234,241,000, or $1.19 per diluted share, and $239,628,000, or $1.19 per diluted share, for the six months ended June 30, 2025. The following table reconciles FFO attributable to common shareholders plus assumed conversions (non-GAAP) to FFO attributable to common shareholders plus assumed conversions, as adjusted (non-GAAP): ________________________________ FFO, as Adjusted Bridge - Q2 2026 vs. Q2 2025 The following table bridges our FFO attributable to common shareholders plus assumed conversions, as adjusted (non-GAAP) for the three months ended June 30, 2025 to FFO attributable to common shareholders plus assumed conversions, as adjusted (non-GAAP) for the three months ended June 30, 2026: See page 10 for a reconciliation of net income (loss) attributable to common shareholders to FFO attributable to common shareholders plus assumed conversions (non-GAAP) for the three and six months ended June 30, 2026 and 2025. Reconciliations of FFO attributable to common shareholders plus assumed conversions to FFO attributable to common shareholders plus assumed conversions, as adjusted are provided above. Acquisitions Park Avenue Plaza On June 11, 2026, we completed the purchase of a 49.0% interest in Park Avenue Plaza at a gross asset valuation of $1.1 billion ($950 per square foot). We acquired our interest subject to our share of the $575,000,000 loan encumbering the property. The loan bears interest at a fixed rate of 2.99% and matures in November 2031. Park Avenue Plaza is a 45-story, 1,200,000 rentable square foot building located at 55 East 52nd Street. The office building, co-owned by Fisher Brothers, has protected Park Avenue views and occupies the full through-block between East 52nd and East 53rd Street. Fisher Brothers retains its current 51.0% ownership interest and continues to manage and lease the property. Vornado and Fisher Brothers have joint control over major decisions. 3 East 54th Street On January 7, 2026, we acquired 3 East 54th Street, an asset situated on 18,400 square feet of land, for $141,000,000. Previously, in July 2025, we purchased the $35,000,000 A-Note secured by the property at par plus accrued interest, and in August 2024, we purchased the $50,000,000 B-Note secured by the property. The A-Note and B-Note were in default. The $107,000,000 loan balance, including default interest and advances, was credited towards the purchase price. 3 East 54th Street is located between Fifth Avenue and Madison Avenue on 54th Street, adjacent to the St. Regis Hotel and our Upper Fifth Avenue retail properties. The land is zoned for approximately 232,500 buildable square feet as-of-right, and we are in the process of demolishing the existing buildings on the site. Dispositions Alexander’s, Inc. (“Alexander’s”) On May 28, 2026, Alexander’s, in which we own a 32.4% interest, completed the sale of its Rego Park I property for $235,500,000. As a result of the sale, we recognized our $44,329,000 share of the net gain and received a $2,355,000 sales commission paid by Alexander’s, of which $500,000 was paid to a third-party broker. 606 Broadway On May 14, 2026, a 50.0% owned consolidated joint venture completed the sale of 606 Broadway. The purchaser acquired the non-recourse mortgage loan, which was in maturity default, at a discount and paid the joint venture $3,000,000 in cash ($2,400,000 to Vornado). The transaction resulted in a $32,073,000 gain on debt extinguishment, of which $15,932,000 is attributable to noncontrolling interests. The property was previously impaired in the fourth quarter of 2023, and had a carrying value of $52,073,000 as of the sale date. Financing Activity Senior Unsecured Notes Due 2026 We repaid our $400,000,000 2.15% senior unsecured notes on their June 1, 2026, maturity date. 61 Ninth Avenue On May 8, 2026, a joint venture, in which we have a 45.1% interest, completed a $161,000,000 refinancing of 61 Ninth Avenue. The interest-only mortgage loan matures in June 2028, with a nine-month extension option subject to certain conditions, and bears interest at SOFR plus 3.00% in year one, SOFR plus 3.35% for year two, and SOFR plus 3.85% during the extension period. The refinancing replaced the joint venture’s prior $167,500,000 mortgage loan on the property. On February 2, 2026, the joint venture had extended that prior loan’s maturity by seven months and simultaneously paid down the principal balance by $12,500,000 to $155,000,000. 350 Park Avenue On March 10, 2026, an affiliate of Kenneth C. Griffin (“KG”) provided a $400,000,000 mortgage loan secured by 350 Park Avenue, the proceeds of which were used to defease the existing $400,000,000 mortgage loan in connection with the site’s development. The new interest-only loan bears interest at a fixed rate of 4.00% and matures in January 2027. Concurrently, and in connection with the planned development, Citadel Enterprise Americas LLC vacated the building and assigned its existing master lease to an affiliate of KG as tenant, and the lease was amended to provide for net rent of $16,000,000 per annum, equal to the interest payments under the new mortgage loan. Financing Activity - continued One Park Avenue On February 9, 2026, we completed a $525,000,000 refinancing of One Park Avenue, a 945,000 square foot Manhattan office building. The five-year interest-only loan matures in February 2031 and bears interest at a rate of SOFR plus 1.78%. The loan replaced the previous $525,000,000 loan that bore interest at SOFR plus 1.22% and was scheduled to mature in March 2026. 825 Seventh Avenue Office Condominium On January 26, 2026, a joint venture, in which we have a 50.0% interest, entered into a nine-month extension with the lenders on the $54,000,000 mortgage loan encumbering the office condominium of 825 Seventh Avenue and simultaneously paid down the principal balance by $6,000,000 to $48,000,000. The loan was previously scheduled to mature in January 2026. The non-recourse interest-only loan bears interest at a rate of SOFR plus 2.75% and matures in October 2026, with a fifteen-month extension option subject to loan-to-value and debt yield requirements. 7 West 34th Street On January 23, 2026, a joint venture, in which we have a 53.0% interest, completed a $250,000,000 refinancing of 7 West 34th Street, a 477,000 square foot Manhattan office and retail building. The non-recourse, five-year interest-only mortgage loan matures in February 2031 and has a fixed rate of 5.79%. The joint venture paid down by $50,000,000 the prior $300,000,000 full-recourse loan that bore interest at 3.65% and was scheduled to mature in June 2026. The loan was paid down using property-level reserves and a $25,000,000 member loan from Vornado which accrues interest at 16.00% and receives priority on distributions. Senior Unsecured Notes Due 2033 On January 14, 2026, we completed a public offering of $500,000,000 5.75% senior unsecured notes due February 1, 2033 (“2033 Notes”). Interest on the senior unsecured notes is payable semi-annually on February 1 and August 1, commencing August 1, 2026. The 2033 Notes were sold at 99.824% of their face amount to yield 5.78%. A portion of the $494,000,000 net proceeds from the 2033 Notes was used to repay our $400,000,000 senior unsecured notes at their June 2026 maturity. 2031 Revolving Credit Facility On January 7, 2026, we completed a $1.105 billion refinancing of one of our two revolving credit facilities. On February 4, 2026, the facility was upsized to $1.130 billion. The $1.130 billion amended facility currently bears interest at a rate of SOFR plus 1.01% and is scheduled to mature in February 2031 (as fully extended). The facility fee is 24 basis points. The facility replaced the previous $1.25 billion revolving credit facility which was scheduled to mature in December 2027. 2029 Revolving Credit Facility On January 7, 2026, we upsized our $915,000,000 revolving credit facility that matures in April 2029 (as fully extended) to $1.0 billion. The credit facility currently bears interest at a rate of SOFR plus 1.16% and has a facility fee of 24 basis points. Unsecured Term Loan On January 7, 2026, we completed a refinancing of our unsecured term loan and upsized the loan amount to $850,000,000. The loan bears interest at SOFR plus 1.15% and matures in February 2031 (as fully extended). The loan replaced the previous $800,000,000 term loan which bore interest at SOFR plus 1.25% and was scheduled to mature in December 2027. 888 Seventh Avenue On December 10, 2025, the $244,543,000 non-recourse mortgage loan on 888 Seventh Avenue matured and was not repaid, at which time the lenders declared an event of default. On March 9, 2026, we entered into a forbearance agreement pursuant to which the lenders agreed to forbear from exercising their remedies and waived default interest through March 2027. During the forbearance period, regularly scheduled interest and required monthly amortization payments continue to accrue, but payment is deferred until the expiration or earlier termination of the forbearance period, at which time such amounts become due and payable. Share Repurchase Program On April 29, 2026, Vornado announced that its Board of Trustees has authorized an additional repurchase of up to $300,000,000 of its outstanding common shares under the share repurchase plan. As of August 3, 2026, $286,590,000 remained available for repurchases. During the three months ended June 30, 2026, we repurchased 1,787,090 common shares for $53,461,000 at an average price per share of $29.92. Leasing Activity The leasing activity and related statistics in the tables below are based on leases signed during the period and are not intended to coincide with the commencement of rental revenue in accordance with accounting principles generally accepted in the United States of America (“GAAP”). Second generation relet space represents square footage that has not been vacant for more than nine months and tenant improvements and leasing commissions are based on our share of square feet leased during the period. _______________________________ Occupancy ____________________ NOI At Share and NOI At Share - Cash Basis: The elements of our New York and Other NOI at share and NOI at share - cash basis for the three and six months ended June 30, 2026 and 2025 and the three months ended March 31, 2026 are summarized below. ________________________________ Active Development/Redevelopment Summary as of June 30, 2026: ________________________________ There can be no assurance that the above project will be completed, completed on schedule or within budget. In addition, there can be no assurance that the Company will be successful in leasing the property on the expected schedule or at the assumed rental rates. Conference Call and Audio WebcastAs previously announced, the Company will host a quarterly earnings conference call and an audio webcast on Tuesday, August 4, 2026 at 10:00 a.m. Eastern Time (ET). The conference call can be accessed by dialing 888-317-6003 (domestic) or 412-317-6061 (international) and entering the passcode 0217387. A live webcast of the conference call will be available on Vornado’s website at www.vno.com in the Investor Relations section and an online playback of the webcast will be available on the website following the conference call. Contact Thomas J. Sanelli (212) 894-7000 Supplemental Data Further details regarding results of operations, properties and tenants can be accessed at the Company’s website www.vno.com. Vornado Realty Trust is a fully-integrated equity real estate investment trust. 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 future 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. We also note the following forward-looking statements: in the case of our development and redevelopment projects, the estimated completion date, estimated project cost, projected incremental cash yield, stabilization date and cost to complete; estimates of future rents, estimates of future capital expenditures, dividends to common and preferred shareholders and operating partnership distributions. Many of the factors that will determine the outcome of these and our other forward-looking statements are beyond our ability to control or predict. 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, 2025. FFO is computed in accordance with the definition adopted by the Board of Governors of the National Association of Real Estate Investment Trusts (“NAREIT”). NAREIT defines FFO as GAAP net income or loss adjusted to exclude net gains from sales of certain real estate assets, impairment write-downs of certain real estate assets and investments in entities when the impairment is directly attributable to decreases in the value of depreciable real estate held by the entity, depreciation and amortization expense from real estate assets and other specified items, including the pro rata share of such adjustments of unconsolidated subsidiaries. FFO and FFO per diluted share are non-GAAP financial measures used by management, investors and analysts to facilitate meaningful comparisons of operating performance between periods and among our peers because it excludes the effect of real estate depreciation and amortization and net gains on sales, which are based on historical costs and implicitly assume that the value of real estate diminishes predictably over time, rather than fluctuating based on existing market conditions. FFO does not represent cash generated from operating activities and is not necessarily indicative of cash available to fund cash requirements and should not be considered as an alternative to net income as a performance measure or cash flow as a liquidity measure. FFO may not be comparable to similarly titled measures employed by other companies. In addition to FFO attributable to common shareholders plus assumed conversions, we also disclose FFO attributable to common shareholders plus assumed conversions, as adjusted. Although this non-GAAP measure clearly differs from NAREIT’s definition of FFO, we believe it provides a meaningful presentation of operating performance. Reconciliations of net income (loss) attributable to common shareholders to FFO attributable to common shareholders plus assumed conversions are provided on the following page. Reconciliations of FFO attributable to common shareholders plus assumed conversions to FFO attributable to common shareholders plus assumed conversions, as adjusted are provided on page 2 of this press release. VORNADO REALTY TRUSTNON-GAAP RECONCILIATIONS The following table reconciles net income (loss) attributable to common shareholders to FFO attributable to common shareholders plus assumed conversions: VORNADO REALTY TRUSTNON-GAAP RECONCILIATIONS - CONTINUED Below is a reconciliation of net income (loss) to NOI at share and NOI at share - cash basis for the three and six months ended June 30, 2026 and 2025 and the three months ended March 31, 2026. NOI at share represents total revenues less operating expenses including our share of partially owned entities. NOI at share - cash basis represents NOI at share adjusted to exclude straight-line rental income and expense, amortization of acquired below and above market leases, accruals for ground rent resets yet to be determined, and other non-cash adjustments. We consider NOI at share to be the primary non-GAAP financial measure for making decisions and assessing the unlevered performance of our segments as it relates to the return on assets as opposed to the levered return on equity. As properties are bought and sold based on NOI at share - cash basis, we utilize this measure to make investment decisions as well as to compare the performance of our assets to that of our peers. NOI at share and NOI at share - cash basis should not be considered alternatives to net income or cash flow from operations and may not be comparable to similarly titled measures employed by other companies. VORNADO REALTY TRUSTNON-GAAP RECONCILIATIONS - CONTINUED Same store NOI at share represents NOI at share from operations which are in service in both the current and prior year reporting periods. Same store NOI at share - cash basis is same store NOI at share adjusted to exclude straight-line rental income and expense, amortization of acquired below and above market leases, accruals for ground rent resets yet to be determined, and other non-cash adjustments. We use these non-GAAP measures to (i) facilitate meaningful comparisons of the operational performance of our properties and segments, (ii) make decisions on whether to buy, sell or refinance properties, and (iii) compare the performance of our properties and segments to those of our peers. Same store NOI at share and same store NOI at share - cash basis should not be considered alternatives to net income or cash flow from operations and may not be comparable to similarly titled measures employed by other companies. Below are reconciliations of NOI at share to same store NOI at share for our New York segment, THE MART, 555 California Street and other investments for the three months ended June 30, 2026 compared to June 30, 2025. VORNADO REALTY TRUSTNON-GAAP RECONCILIATIONS - CONTINUED Below are reconciliations of NOI at share - cash basis to same store NOI at share - cash basis for our New York segment, THE MART, 555 California Street and other investments for the three months ended June 30, 2026 compared to June 30, 2025. VORNADO REALTY TRUSTNON-GAAP RECONCILIATIONS - CONTINUED Below are reconciliations of NOI at share to same store NOI at share for our New York segment, THE MART, 555 California Street and other investments for the six months ended June 30, 2026 compared to June 30, 2025. VORNADO REALTY TRUSTNON-GAAP RECONCILIATIONS - CONTINUED Below are reconciliations of NOI at share - cash basis to same store NOI at share - cash basis for our New York segment, THE MART, 555 California Street and other investments for the six months ended June 30, 2026 compared to June 30, 2025. VORNADO REALTY TRUSTNON-GAAP RECONCILIATIONS - CONTINUED Below are reconciliations of NOI at share to same store NOI at share for our New York segment, THE MART, 555 California Street and other investments for the three months ended June 30, 2026 compared to March 31, 2026. VORNADO REALTY TRUSTNON-GAAP RECONCILIATIONS - CONTINUED Below are reconciliations of NOI at share - cash basis to same store NOI at share - cash basis for our New York segment, THE MART, 555 California Street and other investments for the three months ended June 30, 2026 compared to March 31, 2026.

For the quarter ended June 2026, Vornado (VNO) reported revenue of $462.24 million, up 4.7% over the same period last year. EPS came in at $0.67, compared to $3.70 in the year-ago quarter. The reported revenue represents a surprise of -2.16% over the Zacks Consensus Estimate of $472.44 million. With the consensus EPS estimate being $0.57, the EPS surprise was +17.54%. While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance. Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance. Here is how Vornado performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: Occupancy (At Vornado's share) - New York: 90.8% compared to the 90.9% average estimate based on three analysts. Total Property Square Feet - New York - Vornado's Ownership Interest: 21,229.00 Ksq ft versus 20,760.00 Ksq ft estimated by two analysts on average. Revenue- Total rental revenues: $405.07 million versus $403.78 million estimated by seven analysts on average. Revenue- Fee and other income: $57.17 million compared to the $64.17 million average estimate based on seven analysts. The reported number represents a change of -3.4% year over year. Total revenues- Fee and Other Income- Management and Leasing Fees: $2.66 million versus $2.92 million estimated by six analysts on average. Compared to the year-ago quarter, this number represents a -9.2% change. Total revenues- Property rentals- Tenant Expense Reimbursements: $46.28 million versus the five-analyst average estimate of $44.36 million. The reported number represents a year-over-year change of +33.9%. Total revenues- Fee and Other Income- Other income: $21.17 million versus $19.64 million estimated by five analysts on average. Compared to the year-ago quarter, this number represents a +12.4% change. Total revenues- Fee and Other Income- BMS Cleaning Fees: $33.34 million compared to the $39.5 million average estimate based on five analysts. The reported number represents a change of -10.9% year over year. Total revenues- Total rental revenues- Straight-lining of rents: $26.3 million compared to the $24.7 million average estimate based on four analysts. The reported number represents a change of +70.7% year over year. Total revenues- Total rental revenues- Property rentals: $332.36 million versus the four-analyst average estimate of $325.56 million. The reported number represents a year-over-year change of +0.1%. Total revenues- Total rental revenues- Amortization of acquired below-market leases, net: $0.14 million compared to the $0.24 million average estimate based on four analysts. The reported number represents a change of +40.6% year over year. Total revenues- Fee and other income- Other: $4.68 million compared to the $3.75 million average estimate based on two analysts. The reported number represents a change of +6.2% year over year. View all Key Company Metrics for Vornado here>>> Shares of Vornado have returned -2.9% over the past month versus the Zacks S&P 500 composite's +0.2% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Vornado Realty Trust (VNO) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research