Vornado Realty Trust

What they do

Vornado owns and operates a portfolio of Manhattan properties including 19.2 million square feet of office space, 2.3 million square feet of street retail, and 1,331 residential units, as well as a 32.4% interest in Alexander's, Inc. and the 3.7 million square foot THE MART in Chicago. It also holds a 70% controlling interest in 555 California Street in San Francisco and provides cleaning and security services through its subsidiary BMS. The company conducts business through its operating partnership, of which it owns approximately 91.3%.

Revenue drivers

• New York Office — Largest segment; in Q2 2026 generated NOI at share of $183.4 million, up from $170.9 million in Q2 2025, including base retail.
• New York Street Retail — Includes standalone retail and mixed-use assets on high streets like Fifth Avenue and Times Square; NOI at share was $52.5 million in Q2 2026, up from $44.5 million.
• THE MART (Chicago) — 3.7 million square foot property; NOI at share was $27.3 million in Q2 2026, up from $25.2 million.
• 555 California Street (San Francisco) — 70% controlling interest in a three-building office complex; NOI at share decreased to $14.9 million in Q2 2026 from $18.7 million in Q2 2025.

Recent performance

For Q2 2026, total revenue was $462.2 million, up from $441.4 million in Q2 2025. NOI at share increased to $304.1 million from $277.7 million, and NOI at share - cash basis rose to $263.2 million from $231.7 million. The company reported full-year 2025 net income of $937 million, a significant increase from $20 million in 2024, and operating cash flow more than doubled to $1.26 billion. As of June 30, 2026, total assets were $15.61 billion, with cash of $675.4 million and long-term debt of $2.60 billion.

Strategy

Vornado aims to maximize shareholder value by investing in select markets like New York City, with a focus on high-quality, well-amenitized properties near transit hubs. The company is actively developing and redeveloping projects including 350 Park Avenue, Sunset Pier 94 Studios, 623 Fifth Avenue, and the Hotel Pennsylvania site (PENN 15). It also seeks to finance growth through internally generated funds, asset sales, and access to public and private capital markets, and may repurchase or reacquire its securities.

Risks

• Office market softness — Approximately 78% of 2025 NOI came from office properties, and trends like work-from-home and AI could reduce tenant space demand.
• Geographic concentration — About 88% of 2025 NOI was from the New York metropolitan area, making the company vulnerable to local economic cycles.
• Tenant selectivity — Increased competition among landlords to attract tenants may require significant capital expenditures to maintain Class A status, potentially impacting older properties.
• Dependence on operating partnership — Vornado's cash flow and dividends depend on the operating partnership's ability to meet its obligations to creditors first.

Outlook

Management is focused on executing its development pipeline, including major Manhattan projects, and expects to finance growth through asset sales and capital markets. The company is also pursuing refinancing and restructuring transactions to manage its debt, as evidenced by recent financings and dispositions in 2025. The outlook reflects continued investment in high-quality properties in transit-oriented locations to address evolving tenant preferences.