Vornado (VNO) Down 16.7% Since Last Earnings Report: Can It Rebound?

Core Viewpoint - Vornado Realty has experienced a decline in share price by approximately 16.7% since its last earnings report, underperforming the S&P 500, raising questions about the potential for continued negative trends or a possible breakout before the next earnings release [1]. Financial Performance - Vornado's Q4 2025 FFO was reported at 55 cents per share, missing the Zacks Consensus Estimate of 57 cents, and reflecting a year-over-year decrease of 9.8% [2]. - Total revenues for the quarter were $453.7 million, exceeding the Zacks Consensus Estimate of $434.8 million, although revenues showed a slight year-over-year decline [3]. - Same-store NOI for the quarter was $260.6 million, up from $248.1 million in the prior year, with notable increases of 2.2% in the New York portfolio and 141.1% in THE MART, while 555 California Street saw a decrease of 7.1% [4]. Leasing Activity - In the New York office portfolio, 960,000 square feet were leased at an initial rent of $95.36 per square foot, with a weighted average lease term of 9.9 years [5]. - The New York retail portfolio saw 21,000 square feet leased at an initial rent of $273.56 per square foot, with a weighted average lease term of 8.2 years [6]. - At THE MART, 26,000 square feet were leased at an initial rent of $62.73 per square foot, with a weighted average lease term of 4.4 years [7]. Occupancy Rates - The total occupancy rate in the New York portfolio was 90.0%, an increase of 240 basis points year-over-year, while THE MART's occupancy was 81.5%, up 140 basis points year-over-year. Conversely, occupancy at 555 California Street decreased to 88.9%, down 310 basis points year-over-year [8]. Balance Sheet - Vornado ended Q4 2025 with cash and cash equivalents of $840.9 million, a decrease from $1.01 billion as of September 30, 2025 [9]. Market Outlook - There has been a downward trend in estimates for Vornado, indicating a shift in market sentiment, with the company holding a Zacks Rank 3 (Hold), suggesting an expectation of in-line returns in the coming months [10][13]. - Vornado has a subpar Growth Score of D and a similar score for momentum, but a strong value score of A, placing it in the top quintile for value investors [12]. Industry Comparison - Vornado operates within the Zacks REIT and Equity Trust - Other industry, where competitor Digital Realty Trust has seen a 4.8% gain over the past month, reporting revenues of $1.63 billion for the last quarter, reflecting a year-over-year increase of 13.8% [14].