We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Vornado (VNO) Boosts Strength With $120M Loan Refinancing
Read MoreHide Full Article
Vornado Realty Trust (VNO - Free Report) boosted its financial position by refinancing a $120-million loan for 4 Union Square South. The interest-only loan carries an interest rate of LIBOR plus 1.4% and is slated to mature in 2025, after considering any further extension.
It will replace a previous LIBOR plus 2.15% loan of $113 million, which was slated to mature in 2019. Notably, the refinancing is done for the 206,000-square-foot retail property located in Manhattan.
This refinancing offers Vornado a cheaper line of credit and helps reduce annualized interest expense. Moreover, extended maturities of the assumed debt will help the company improve its maturity profile and enjoy greater liquidity for day-to-day operations. The move will also boost the company’s cash flow and alleviate its bottom-line pressure. The reduction offers greater financial flexibility and will strengthen Vornado’s balance sheet.
Notably, the company exited the second quarter with lower liquidity of nearly $1.1 billion in cash and cash equivalents, as compared to $1.8 billion recorded at prior-year end.
Vornado had earlier transformed the property from a departmental store into a multi-tenant retail center. 4 Union Square houses tenants such as Forever 21, Burlington Coat Factory, DSW Shoes and Whole Foods.
The company’s strategy to attract and retain tenants at favorable rents through extensive redevelopment programs looks encouraging amid the prevailing lackluster retail environment in the United States. Importantly, the predominance of e-retailers over brick-and-mortar sales has emerged as a pressing concern for retail REITs like Kimco Realty Corporation (KIM - Free Report) , Macerich Company (MAC - Free Report) and Taubman Centers . In fact, a number of retail landlords have been affected due to online channels increasingly gaining popularity. This has also resulted in widespread store closures and bankruptcy filing by retailers.
Over the past six months, shares of the company have underperformed the industry it belongs to. In fact, its shares have gained 7.9% compared with the industry’s rally of 8.2% during the same time frame.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
Image: Bigstock
Vornado (VNO) Boosts Strength With $120M Loan Refinancing
Vornado Realty Trust (VNO - Free Report) boosted its financial position by refinancing a $120-million loan for 4 Union Square South. The interest-only loan carries an interest rate of LIBOR plus 1.4% and is slated to mature in 2025, after considering any further extension.
It will replace a previous LIBOR plus 2.15% loan of $113 million, which was slated to mature in 2019. Notably, the refinancing is done for the 206,000-square-foot retail property located in Manhattan.
This refinancing offers Vornado a cheaper line of credit and helps reduce annualized interest expense. Moreover, extended maturities of the assumed debt will help the company improve its maturity profile and enjoy greater liquidity for day-to-day operations. The move will also boost the company’s cash flow and alleviate its bottom-line pressure. The reduction offers greater financial flexibility and will strengthen Vornado’s balance sheet.
Notably, the company exited the second quarter with lower liquidity of nearly $1.1 billion in cash and cash equivalents, as compared to $1.8 billion recorded at prior-year end.
Vornado had earlier transformed the property from a departmental store into a multi-tenant retail center. 4 Union Square houses tenants such as Forever 21, Burlington Coat Factory, DSW Shoes and Whole Foods.
The company’s strategy to attract and retain tenants at favorable rents through extensive redevelopment programs looks encouraging amid the prevailing lackluster retail environment in the United States. Importantly, the predominance of e-retailers over brick-and-mortar sales has emerged as a pressing concern for retail REITs like Kimco Realty Corporation (KIM - Free Report) , Macerich Company (MAC - Free Report) and Taubman Centers . In fact, a number of retail landlords have been affected due to online channels increasingly gaining popularity. This has also resulted in widespread store closures and bankruptcy filing by retailers.
Over the past six months, shares of the company have underperformed the industry it belongs to. In fact, its shares have gained 7.9% compared with the industry’s rally of 8.2% during the same time frame.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
See the pot trades we're targeting>>