Vornado(US:VNO) ZACKSยท2024-11-05 17:21Core Viewpoint - Vornado Realty Trust reported a decline in funds from operations (FFO) for Q3 2024, despite beating consensus estimates, indicating challenges in the current market environment [1][2]. Financial Performance - Adjusted FFO was 52 cents per share, surpassing the Zacks Consensus Estimate of 51 cents, but down 21.2% year-over-year [1] - Total revenues for the quarter were $443.3 million, exceeding the Zacks Consensus Estimate of $440.7 million, but reflecting a year-over-year decline of nearly 1.7% [2] Same-Store Net Operating Income (NOI) - Total same-store NOI was $247.8 million, down from $270.6 million in the prior-year quarter, with declines in key portfolios: New York (-9%), THE MART (-2.8%), and 555 California Street (-4.7%) [3] Leasing Activity - In the New York office portfolio, 454,000 square feet were leased at an initial rent of $92.32 per square foot, with a weighted average lease term of 9.7 years [4] - The New York retail portfolio saw 97,000 square feet leased at an initial rent of $66.26 per square foot, with a weighted average lease term of 10.8 years [5] - At THE MART, 239,000 square feet were leased at an initial rent of $50.18 per square foot, with a weighted average lease term of 8.4 years [6] - 46,000 square feet were leased at 555 California Street for an initial rent of $98.75 per square foot, with a weighted average lease term of 11.6 years [7] Occupancy Rates - Occupancy in the New York portfolio decreased to 86.7%, down 320 basis points year-over-year; THE MART's occupancy increased to 79.7%, up 290 basis points; 555 California Street remained stable at 94.5% [8] Balance Sheet - Vornado ended Q3 2024 with cash and cash equivalents of $783.6 million, a decrease of 10.2% from $872.6 million as of June 30, 2024 [9]