Vornado Realty Trust (VNO) Q3 2023 Earnings: Net Income Rises to $52.8 Million
Net income for Q3 2023 was $52.8 million, a significant increase from $7.7 million in Q3 2022.
Funds from Operations (FFO) for Q3 2023 was $119.5 million, down from $152.5 million in Q3 2022.
VNO repurchased 302,200 common shares for $5.9 million at an average price per share of $19.61.
The company completed several significant transactions, including the formation of a joint venture to develop a studio campus at Pier 94 in Manhattan.
On October 30, 2023, Vornado Realty Trust (NYSE:VNO) released its financial results for the third quarter of 2023. The company reported a net income attributable to common shareholders of $52.8 million or $0.28 per diluted share, a significant increase from $7.7 million or $0.04 per diluted share in the same period last year. However, Funds from Operations (FFO) attributable to common shareholders plus assumed conversions for the quarter was $119.5 million, or $0.62 per diluted share, compared to $152.5 million, or $0.79 per diluted share, for the prior year's quarter.
Financial Highlights
For the nine months ended September 30, 2023, VNO reported a net income of $104.4 million, or $0.54 per diluted share, compared to $84.7 million, or $0.44 per diluted share, for the same period in 2022. FFO for the nine months ended September 30, 2023 was $382.7 million, or $1.97 per diluted share, compared to $462.5 million, or $2.39 per diluted share, for the same period in 2022.
During the third quarter, VNO repurchased 302,200 common shares for $5.9 million at an average price per share of $19.61. As of September 30, 2023, $170.9 million remained available and authorized for repurchases.
Key Transactions
VNO completed several significant transactions during the quarter. On August 28, 2023, the company, along with Hudson Pacific Properties and Blackstone Inc., formed a joint venture to develop a 266,000 square foot purpose-built studio campus at Pier 94 in Manhattan. The development cost of the project is estimated to be $350 million.
On April 26, 2023, VNO announced the postponement of dividends on its common shares until the end of 2023. The company also announced that its Board of Trustees has authorized the repurchase of up to $200 million of its outstanding common shares under a newly established share repurchase program.
Leasing Activity
During the third quarter, VNO leased 236,000 square feet of New York Office space at an initial rent of $93.33 per square foot and a weighted average lease term of 7.9 years. The company also leased 29,000 square feet of New York Retail space at an initial rent of $373.28 per square foot and a weighted average lease term of 8.4 years.
For the nine months ended September 30, 2023, VNO leased 1,292,000 square feet of New York Office space at an initial rent of $97.99 per square foot and a weighted average lease term of 9.5 years. The company also leased 259,000 square feet of New York Retail space at an initial rent of $116.03 per square foot and a weighted average lease term of 5.6 years.
Explore the complete 8-K earnings release (here) from Vornado Realty Trust for further details.
This article first appeared on GuruFocus.
