Vornado (VNO) Up 0.1% Since Last Earnings Report: Can It Continue?

Core Viewpoint - Vornado's recent earnings report shows mixed results, with FFO and revenues beating estimates but a decline in same-store NOI, raising questions about future performance leading up to the next earnings release [2][3][4]. Financial Performance - Vornado's Q3 2024 FFO was 52 cents per share, exceeding the Zacks Consensus Estimate of 51 cents, but down 21.2% year over year [2]. - Total revenues for the quarter were $443.3 million, surpassing the Zacks Consensus Estimate of $440.7 million, yet reflecting a year-over-year decline of nearly 1.7% [3]. - Same-store NOI was reported at $247.8 million, an 8.4% decrease from the prior year, with specific portfolio declines of 9% in New York, 2.8% at THE MART, and 4.7% at 555 California Street [4]. 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 [5]. - The New York retail portfolio saw 97,000 square feet leased at an initial rent of $66.26 per square foot, with a lease term of 10.8 years [6]. - At THE MART, 239,000 square feet were leased at an initial rent of $50.18 per square foot, with a lease term of 8.4 years [7]. - In 555 California Street, 46,000 square feet were leased at an initial rent of $98.75 per square foot, with a lease term of 11.6 years [8]. Occupancy Rates - The occupancy rate in the New York portfolio decreased to 86.7%, down 320 basis points year over year, while THE MART's occupancy increased to 79.7%, up 290 basis points [9]. 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 [10]. Industry Comparison - Vornado is part of the Zacks REIT and Equity Trust - Other industry, where Digital Realty Trust has gained 5.6% over the past month, reporting revenues of $1.43 billion, a year-over-year increase of 2.1% [14].