Vornado (VNO) Q3 FFO Misses, Revenues Surpass Estimates

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Vornado Realty Trust’s VNO third-quarter 2021 funds from operations (FFO) plus assumed conversions as adjusted of 71 cents per share missed the Zacks Consensus Estimate of 72 cents. However, the reported figure comes in 16.4% higher than the year-ago quarter’s 61 cents.

Vornado’s results display year-over-year growth in the same-store net operating income (NOI) in the New York portfolio and 555 California Street, partially offset by decline in the theMART.

Total revenues came in at $409.2 million in the reported quarter, surpassing the Zacks Consensus Estimate of $384.5 million. Further, revenues compare favorably with the year-ago number of $364 million.

Behind the Headline Numbers

In the New York portfolio, 757,000 square feet of office space (672,000 square feet at share) and 111,000 square feet of retail space (105,000 square feet at share) were leased during the September-end quarter. Also, 103,000 square feet of area (all at share) was leased at theMart and 23,000 square feet at 555 California Street (16,000 square feet at share).

At the end of the third quarter, occupancy in the New York portfolio was 90.4%, down from the 94.3% witnessed at the prior-year quarter end. Occupancy in theMART was 89.6%, down from the 89.8% reported as of Sep 30, 2020. Additionally, occupancy in 555 California Street was 98.1%, down from the prior year quarter’s 98.4%.

In the reported quarter, total same-store NOI (at share) improved 4.1% year over year. While the same-store NOI at theMART plummeted 50.8%, the same-store NOI at the New York portfolio increased 7.8%. The same-store NOI in the company’s 555 California Street climbed 3%.

As of Sep 30, 2021, the company had $2.13 billion of cash and cash equivalents, up from the $1.62 billion reported as of Dec 31, 2020.

Vornado currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Vornado Realty Trust Price, Consensus and EPS Surprise

Vornado Realty Trust price-consensus-eps-surprise-chart | Vornado Realty Trust Quote

Performance of Other REITs

Prologis, Inc. PLD came up with third-quarter core FFO per share of $1.04, surpassing the Zacks Consensus Estimate of $1.03. Results reflected solid increases in market rents and valuations amid unprecedented low vacancies in its markets.

Boston Properties Inc.’s BXP third-quarter 2021 FFO per share of $1.73 beat the Zacks Consensus Estimate of $1.70. The quarterly figure also exceeded the mid-point of the company’s third-quarter guidance by 4 cents, highlighting better-than-projected results from the in-service portfolio and improved parking revenues.

Highwoods Properties, Inc.’s HIW FFO per share of 96 cents topped the Zacks Consensus Estimate of 93 cents for the September-end quarter. Rental and other revenues of $195.5 million outpaced the consensus mark of $192.2 million.

Note: Anything related to earnings presented in this write-up represent funds from operations (FFO) — a widely used metric to gauge the performance of REITs.

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