Vornado Realty Trust (NYSE:VNO)
$ 38.8 -0.19 (-0.49%) Market Cap: 7.39 Bil Enterprise Value: 16.68 Bil PE Ratio: 431.11 PB Ratio: 1.66 GF Score: 65/100
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Q2 2024 Vornado Realty Trust and Alexander's Inc Earnings Call Transcript

Aug 06, 2024 / 02:00PM GMT
Release Date Price: $30.72 (+12.65%)

Key Points

Positve
  • Vornado Realty Trust (VNO) reported strong leasing activity, particularly at PENN 2, with more than two-thirds of recent vacancies already spoken for.
  • The company completed a significant transaction with Bloomberg, renewing and extending 947,000 square feet at 731 Lexington Avenue for 16 years.
  • Vornado Realty Trust (VNO) announced the sale of its portion of UNIQLO's Fifth Avenue flagship for $350 million, which will enhance liquidity and reduce leverage.
  • The company has a robust pipeline of 2.6 million square feet in leasing negotiations, indicating strong future leasing prospects.
  • Vornado Realty Trust (VNO) has strong liquidity of $2.7 billion, including $1.1 billion in cash and restricted cash, and $1.6 billion undrawn under revolving credit facilities.
Negative
  • Second quarter comparable FFO as adjusted was $0.57 per share, down from $0.72 per share in the same quarter last year.
  • The company expects 2024 comparable FFO to be down from 2023 due to higher projected net interest expense and the temporary impact of known vacancies.
  • Concessions in the leasing market remain stubbornly high, although they have stabilized.
  • The occupancy rate is expected to trend down in the next quarter due to a significant tenant vacating 770 Broadway.
  • The cost of construction financing and lack of availability make it difficult to build new projects, including the former Hotel Penn site.
Operator

Good morning, and welcome to the Vornado Realty Trust second-quarter 2024 earnings call. My name is Rocco, 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 Corporate Counsel. Please go ahead.

Steve Borenstein
Vornado Realty Trust - Executive Vice President, Corporate Counsel

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 packages 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

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