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Vornado (VNO) Up 0.1% Since Last Earnings Report: Can It Continue?
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It has been about a month since the last earnings report for Vornado (VNO - Free Report) . Shares have added about 0.1% in that time frame, underperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Vornado due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
Vornado's Q3 FFO & Revenues Beat Estimates, Same-Store NOI Declines
Vornado’s third-quarter 2024 FFO plus assumed conversions, on an adjusted basis, were 52 cents per share, which beat the Zacks Consensus Estimate of 51 cents. However, the figure declined 21.2% year over year.
Results displayed better-than-anticipated top-line growth. Vornado witnessed decent leasing activity during the quarter. However, total same-store NOI declined year over year.
Total revenues came in at $443.3 million in the reported quarter, which beat the Zacks Consensus Estimate of $440.7 million. However, on a year-over-year basis, revenues declined nearly 1.7%.
Vornado’s Quarter in Detail
In the reported quarter, total same-store NOI (at share) came in at $247.8 million, declining 8.4% from the prior-year quarter. The metric for the New York, THE MART and 555 California Street portfolios decreased 9%, 2.8% and 4.7%, respectively, from the prior-year period.
Interest expenses rose 14.5% year over year to $100.9 million.
During the quarter, in the New York office portfolio, 454,000 square feet of office space (292,000 square feet at share) was leased for an initial rent of $92.32 per square foot and a weighted average lease term of 9.7 years. The tenant improvements and leasing commissions were $9.93 per square foot per annum or 10.8% of the initial rent.
In the New York retail portfolio, 97,000 square feet were leased (92,000 square feet at share) at an initial rent of $66.26 per square foot and a weighted average lease term of 10.8 years. The tenant improvements and leasing commissions were $3.83 per square foot per annum or 5.8% of the initial rent.
At THE MART, 239,000 square feet of space (all at share) was leased for an initial rent of $50.18 per square foot and a weighted average lease term of 8.4 years. The tenant improvements and leasing commissions were $13.19 per square foot per annum or 26.3% of the initial rent.
At 555 California Street, 46,000 square feet of office space (33,000 square feet at share) was leased for an initial rent of $98.75 per square foot and a weighted average lease term of 11.6 years. The tenant improvements and leasing commissions were $19.41 per square foot per annum or 19.7% of the initial rent.
Vornado ended the quarter with occupancy in the New York portfolio at 86.7%, down 320 basis points (bps) year over year. Occupancy in THE MART was 79.7%, up 290 bps year over year. Occupancy in 555 California Street remained unchanged at 94.5%.
Vornado’s Balance Sheet
Vornado exited the third quarter of 2024 with cash and cash equivalents of $783.6 million, down 10.2% from $872.6 million as of June 30, 2024.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates flatlined during the past month.
VGM Scores
Currently, Vornado has a poor Growth Score of F, however its Momentum Score is doing a bit better with a D. Following the exact same course, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Vornado has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Vornado is part of the Zacks REIT and Equity Trust - Other industry. Over the past month, Digital Realty Trust (DLR - Free Report) , a stock from the same industry, has gained 5.6%. The company reported its results for the quarter ended September 2024 more than a month ago.
Digital Realty Trust reported revenues of $1.43 billion in the last reported quarter, representing a year-over-year change of +2.1%. EPS of $0.09 for the same period compares with $1.62 a year ago.
For the current quarter, Digital Realty Trust is expected to post earnings of $1.70 per share, indicating a change of +4.3% from the year-ago quarter. The Zacks Consensus Estimate has changed -0.4% over the last 30 days.
Digital Realty Trust has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of F.
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Vornado (VNO) Up 0.1% Since Last Earnings Report: Can It Continue?
It has been about a month since the last earnings report for Vornado (VNO - Free Report) . Shares have added about 0.1% in that time frame, underperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Vornado due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
Vornado's Q3 FFO & Revenues Beat Estimates, Same-Store NOI Declines
Vornado’s third-quarter 2024 FFO plus assumed conversions, on an adjusted basis, were 52 cents per share, which beat the Zacks Consensus Estimate of 51 cents. However, the figure declined 21.2% year over year.
Results displayed better-than-anticipated top-line growth. Vornado witnessed decent leasing activity during the quarter. However, total same-store NOI declined year over year.
Total revenues came in at $443.3 million in the reported quarter, which beat the Zacks Consensus Estimate of $440.7 million. However, on a year-over-year basis, revenues declined nearly 1.7%.
Vornado’s Quarter in Detail
In the reported quarter, total same-store NOI (at share) came in at $247.8 million, declining 8.4% from the prior-year quarter. The metric for the New York, THE MART and 555 California Street portfolios decreased 9%, 2.8% and 4.7%, respectively, from the prior-year period.
Interest expenses rose 14.5% year over year to $100.9 million.
During the quarter, in the New York office portfolio, 454,000 square feet of office space (292,000 square feet at share) was leased for an initial rent of $92.32 per square foot and a weighted average lease term of 9.7 years. The tenant improvements and leasing commissions were $9.93 per square foot per annum or 10.8% of the initial rent.
In the New York retail portfolio, 97,000 square feet were leased (92,000 square feet at share) at an initial rent of $66.26 per square foot and a weighted average lease term of 10.8 years. The tenant improvements and leasing commissions were $3.83 per square foot per annum or 5.8% of the initial rent.
At THE MART, 239,000 square feet of space (all at share) was leased for an initial rent of $50.18 per square foot and a weighted average lease term of 8.4 years. The tenant improvements and leasing commissions were $13.19 per square foot per annum or 26.3% of the initial rent.
At 555 California Street, 46,000 square feet of office space (33,000 square feet at share) was leased for an initial rent of $98.75 per square foot and a weighted average lease term of 11.6 years. The tenant improvements and leasing commissions were $19.41 per square foot per annum or 19.7% of the initial rent.
Vornado ended the quarter with occupancy in the New York portfolio at 86.7%, down 320 basis points (bps) year over year. Occupancy in THE MART was 79.7%, up 290 bps year over year. Occupancy in 555 California Street remained unchanged at 94.5%.
Vornado’s Balance Sheet
Vornado exited the third quarter of 2024 with cash and cash equivalents of $783.6 million, down 10.2% from $872.6 million as of June 30, 2024.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates flatlined during the past month.
VGM Scores
Currently, Vornado has a poor Growth Score of F, however its Momentum Score is doing a bit better with a D. Following the exact same course, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Vornado has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Vornado is part of the Zacks REIT and Equity Trust - Other industry. Over the past month, Digital Realty Trust (DLR - Free Report) , a stock from the same industry, has gained 5.6%. The company reported its results for the quarter ended September 2024 more than a month ago.
Digital Realty Trust reported revenues of $1.43 billion in the last reported quarter, representing a year-over-year change of +2.1%. EPS of $0.09 for the same period compares with $1.62 a year ago.
For the current quarter, Digital Realty Trust is expected to post earnings of $1.70 per share, indicating a change of +4.3% from the year-ago quarter. The Zacks Consensus Estimate has changed -0.4% over the last 30 days.
Digital Realty Trust has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of F.