Why Is Vornado (VNO) Up 2.3% Since Last Earnings Report?

Core Viewpoint - Vornado's recent earnings report indicates a mixed performance, with a slight increase in share price but a decline in year-over-year financial metrics, raising questions about future performance leading up to the next earnings release [1][14]. Financial Performance - Vornado's Q2 2025 FFO was 56 cents per share, exceeding the Zacks Consensus Estimate of 53 cents, but down 1.8% year-over-year [2]. - Total revenues for the quarter were $441.4 million, missing the Zacks Consensus Estimate of $455.4 million, and reflecting a nearly 2% decrease year-over-year [3]. Same-Store NOI - Total same-store NOI for the quarter was $260.8 million, an increase from $247.4 million in the prior-year quarter, with notable growth in specific portfolios: New York (1.8%), THE MART (57.7%), and 555 California Street (3.1%) [4]. Leasing Activity - In the New York office portfolio, 1.5 million square feet were leased at an initial rent of $101.44 per square foot, with a weighted average lease term of 6.8 years [5]. - The New York retail portfolio saw 57,000 square feet leased at an initial rent of $96.77 per square foot, with a weighted average lease term of 8.1 years [6]. - At THE MART, 127,000 square feet were leased at an initial rent of $50.87 per square foot, with a weighted average lease term of 5.6 years [7]. Occupancy Rates - The total occupancy in the New York portfolio was 85.2%, down 310 basis points year-over-year, while THE MART's occupancy was 78.2%, up 130 basis points year-over-year, and 555 California Street's occupancy was 92.3%, down 220 basis points year-over-year [8]. Portfolio Activity - A joint venture, in which Vornado holds a 50% interest, completed the sale of the 49 West 57th Street commercial condominium for $8.7 million during the quarter [9]. Balance Sheet - Vornado ended Q2 2025 with cash and cash equivalents of $1.2 billion, a significant increase from $568.9 million as of March 31, 2025 [10]. Market Outlook - There has been an upward trend in estimates revision for Vornado, indicating a potentially positive outlook [11][14]. - Vornado holds a Zacks Rank 3 (Hold), suggesting an expectation of an in-line return in the coming months [14]. Industry Comparison - Vornado operates within the Zacks REIT and Equity Trust - Other industry, where Alexandria Real Estate Equities has gained 3.5% over the past month, despite reporting a year-over-year revenue decline of 0.6% [15][16].