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 Realty's (VNO) Q3 FFO Misses Estimates, Revenues Up
Read MoreHide Full Article
Vornado Realty Trust (VNO - Free Report) reported third-quarter 2018 adjusted funds from operations (FFO) per share with assumed conversions of 97 cents, missing the Zacks Consensus Estimate of 99 cents. Also, the figure remained flat year over year.
Results reflect decent leasing activity in the New York office portfolio, giving rise to higher occupancy in the overall New York portfolio. However, the company witnessed a decline in same-store net operating income (NOI) and occupancy at its theMART segment.
Total revenues came in at $542 million in the reported quarter, comfortably surpassing the Zacks Consensus Estimate of $537.6 million. Further, the reported figure compares favorably with the year-ago tally of $528.7 million.
Behind the Headline Numbers
In the New York portfolio, 312,000 square feet of office space (308,000 square feet of space at share) and 104,000 square feet of retail space (99,000 square feet of space at share) were leased in the Sep-end quarter. Also, 28,000 square feet of area was leased in theMart.
At the end of the quarter under review, occupancy in the New York portfolio was 97.3%, up 70 basis points (bps) sequentially, and 40 bps year over year. Occupancy in theMART was 95.5%, down 380 bps sequentially and 320 bps year over year. Furthermore, occupancy in 555 California Street was 99.4%, expanding 210 bps sequentially and 520 bps year over year.
During the third quarter, same-store NOI at the company’s share inched up 0.6% year over year for the New York portfolio. The same for theMART decreased 3.8%, while occupancy at 555 California Street grew 17.2%, year over year, respectively.
As of Sep 30, 2018, Vornado had nearly $772.5 million of cash and cash equivalents, down from $1.8 billion as of the prior-year end.
Our Viewpoint
Vornado’s portfolio-repositioning initiatives, per which it has been expanding its New York City office and Manhattan retail footprint, supported its third-quarter performance. We anticipate economic improvement and recovery in the job market to spur demand for the company’s office spaces, moving ahead. Also, strong consumer sentiments will likely drive revenues at the company’s retail avenues.
Vornado Realty Trust Price, Consensus and EPS Surprise
We now look forward to the earnings releases of other REITs like The Macerich Company (MAC - Free Report) , Federal Realty Trust (FRT - Free Report) and Mark Cali Realty . All three companies are scheduled to report their Q3 numbers on Oct 31.
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.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
Image: Bigstock
Vornado Realty's (VNO) Q3 FFO Misses Estimates, Revenues Up
Vornado Realty Trust (VNO - Free Report) reported third-quarter 2018 adjusted funds from operations (FFO) per share with assumed conversions of 97 cents, missing the Zacks Consensus Estimate of 99 cents. Also, the figure remained flat year over year.
Results reflect decent leasing activity in the New York office portfolio, giving rise to higher occupancy in the overall New York portfolio. However, the company witnessed a decline in same-store net operating income (NOI) and occupancy at its theMART segment.
Total revenues came in at $542 million in the reported quarter, comfortably surpassing the Zacks Consensus Estimate of $537.6 million. Further, the reported figure compares favorably with the year-ago tally of $528.7 million.
Behind the Headline Numbers
In the New York portfolio, 312,000 square feet of office space (308,000 square feet of space at share) and 104,000 square feet of retail space (99,000 square feet of space at share) were leased in the Sep-end quarter. Also, 28,000 square feet of area was leased in theMart.
At the end of the quarter under review, occupancy in the New York portfolio was 97.3%, up 70 basis points (bps) sequentially, and 40 bps year over year. Occupancy in theMART was 95.5%, down 380 bps sequentially and 320 bps year over year. Furthermore, occupancy in 555 California Street was 99.4%, expanding 210 bps sequentially and 520 bps year over year.
During the third quarter, same-store NOI at the company’s share inched up 0.6% year over year for the New York portfolio. The same for theMART decreased 3.8%, while occupancy at 555 California Street grew 17.2%, year over year, respectively.
As of Sep 30, 2018, Vornado had nearly $772.5 million of cash and cash equivalents, down from $1.8 billion as of the prior-year end.
Our Viewpoint
Vornado’s portfolio-repositioning initiatives, per which it has been expanding its New York City office and Manhattan retail footprint, supported its third-quarter performance. We anticipate economic improvement and recovery in the job market to spur demand for the company’s office spaces, moving ahead. Also, strong consumer sentiments will likely drive revenues at the company’s retail avenues.
Vornado Realty Trust Price, Consensus and EPS Surprise
Vornado Realty Trust Price, Consensus and EPS Surprise | Vornado Realty Trust Quote
Currently, Vornado carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
We now look forward to the earnings releases of other REITs like The Macerich Company (MAC - Free Report) , Federal Realty Trust (FRT - Free Report) and Mark Cali Realty . All three companies are scheduled to report their Q3 numbers on Oct 31.
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.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>