Q2 2026 Vornado Realty Trust and Alexander's Inc Earnings Call Transcript
Key Points
- Vornado Realty Trust (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 (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 (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 (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.
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.
'- -
Welcome to Vornado Realty Trust's 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.bno.com, under the Investor Relations section. In these documents and during today's call, we will discuss certain non-GAAP financial measures.
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
