Vornado Realty Trust (NYSE:VNO) Q4 2025 Earnings call February 10, 2026 10:00 AM ET Company ParticipantsGlen Weiss - EVPMichael Franco - President and CFOSteve Borenstein - EVP and Corporate CounselSteven Roth - Chairman and CEOThomas Sanelli - EVP of Finance and Chief Administrative OfficerConference Call ParticipantsAlexander Goldfarb - AnalystAnnabelle Ayer - AnalystAnthony Paolone - AnalystDylan Burzinski - AnalystFloris van Dijkum - AnalystJana Galan - AnalystJohn Kim - AnalystNick Yulico - AnalystSeth ...

Financial Data and Key Metrics Changes - Comparable FFO for 2025 was $2.32 per share, slightly higher than 2024 and better than initial expectations [23] - Fourth quarter comparable FFO was $0.55 per share, down from $0.61 per share in Q4 2024, primarily due to higher net interest expense and lease termination income from the previous year [24] - Company same-store GAAP NOI increased by 5% for the quarter, while same-store cash NOI decreased by 8.3% [24] Business Line Data and Key Metrics Changes - In 2025, the company leased 4.6 million sq ft of office space, with 3.7 million sq ft in Manhattan, marking the highest Manhattan leasing volume in over a decade [7] - Average starting rents in Manhattan were $98 per sq ft, with marked markets showing increases of +10.4% GAAP and +7.8% cash [8] - Office occupancy rose from 88.8% to 91.2% during the year, reflecting strong leasing activity [11][26] Market Data and Key Metrics Changes - The New York office market is experiencing a tightening landlords market, with robust tenant demand from finance, tech, and other industries [4] - The financing markets for class A assets are strong, with CMBS spreads at their tightest since 2021 [26] - The company has a liquidity of $2.39 billion, consisting of cash balances of $978 million and undrawn credit lines of $1.41 billion [20] Company Strategy and Development Direction - The company is focused on its Manhattan-centric office strategy, emphasizing high-quality office space and development projects like 350 Park Avenue and PENN 15 [5][14] - The company plans to enhance its retail offerings in the Penn District and is developing a 475-unit rental residential building [18] - The management team is committed to maintaining a liquid balance sheet while exploring stock buybacks due to perceived undervaluation [21][22] Management's Comments on Operating Environment and Future Outlook - Management believes the current fundamentals in Manhattan are the best in 20 years, with expectations for continued tightening in the landlords market [4] - The company anticipates significant earnings growth in 2027 as the positive impact from PENN 1 and PENN 2 lease uptakes materializes [25] - Management acknowledges the disconnect between stock price and asset value, viewing it as a potential buying opportunity [22] Other Important Information - The company has refinanced nearly $3.5 billion of debt, extending maturities through 2031 [21] - The acquisition of 623 Fifth Avenue is viewed as a strategic move to create a high-end boutique office space [14][46] - The company is actively managing its capital plan, balancing development projects with stock buybacks and asset sales [52] Q&A Session Summary Question: Changes in the structure of 350 Park - Management confirmed that there were amendments related to the overall deal, allowing for flexibility in equity percentage [33] Question: Overall leasing pipeline and tenant conversations - The leasing pipeline remains strong, with over half of the activity from new tenants and significant expansions from financial services and tech sectors [36] Question: Share buybacks and asset dispositions - Management expressed strong interest in pursuing share buybacks, viewing the stock as undervalued [37] Question: Difference between cash and GAAP same-store NOI - Management indicated that the inflection point for cash NOI turning positive is expected in the second half of 2026 [39] Question: Retail market performance on Upper Fifth Avenue - The retail market is improving but still struggling to meet top rents from previous years [41] Question: GAAP occupancy and lease occupancy differences - Management clarified that the $200 million difference is an absolute number, not annualized, and will be recognized as tenants meet GAAP standards [42] Question: Details on 623 Fifth Avenue and its impact on FFO - The project is expected to generate an incremental return of over $0.11 to FFO, with a focus on creating a high-quality boutique office space [44][46]

Core Viewpoint - The Shenzhen real estate market is showing signs of recovery, with significant demand for both affordable housing and commercial properties, driven by favorable policies and economic growth [1][6]. Group 1: Affordable Housing Market - The first affordable housing project of the year, Shen Tie Ming Zhu Fang, sold out on January 31, 2026, indicating strong demand for affordable housing [1][2]. - The project had 181 units available, with 662 qualifying households, resulting in a subscription ratio of approximately 1:3.6, reflecting high interest from first-time buyers [2]. Group 2: Overall Real Estate Market Performance - In January 2026, over 10,000 new and second-hand homes were signed, with second-hand home transactions increasing by 25% year-on-year and 7% month-on-month [1][6]. - The market has seen a steady increase in second-hand home transactions, with over 5,000 units sold for ten consecutive months since March 2025 [1]. Group 3: Commercial Real Estate Trends - In January 2026, new commercial property transactions accounted for 35.5% of total new home sales, while second-hand commercial property transactions made up 20.5% of total second-hand sales, both showing increases from 2022 [5]. - High-demand small apartments in prime locations are favored for their low entry barriers and high rental yields, with some properties showing rental returns exceeding 4% [5]. Group 4: Policy and Economic Support - A series of policy incentives have been introduced in 2026, including a reduction in capital gains tax for properties held for less than two years and adjustments to commercial property loan requirements [6]. - Shenzhen's GDP grew by 5.5% in 2025, with strong industrial performance, which is expected to enhance employment and income prospects, further boosting real estate demand [6].

Core Insights - The company achieved a record annual result in 2025, signing a total of 176 sales contracts, which is a 36% increase from the previous year [2][36] - The sales revenue for Q4 2025 was EUR 34.9 million, significantly higher than both Q3 2025 and Q4 2024, with a net profit of EUR 5.0 million [10][39] - The company is entering 2026 with a presale portfolio of 101 homes valued at EUR 33.7 million, indicating strong future revenue potential [8][38] Sales Performance - In Q4 2025, 60 sales contracts were signed, maintaining the same level as the previous quarter and significantly higher than Q4 2024 [2][32] - The Iseära and Peakorter projects were the largest contributors to new contracts signed during the quarter [3] - The total sales revenue for the year reached EUR 49.3 million, reflecting a substantial increase from EUR 27.3 million in 2024 [10][36] Market Share and Position - Liven's market share in new sales transactions in Tallinn and adjacent municipalities was approximately 7-8% in 2025, down from 10% in 2024, but still the highest in the market [5] - The company ranked first in the reputation of real estate developers according to a Kantar Emor survey, indicating strong brand recognition [22] Financial Overview - The total assets decreased by EUR 13.7 million during Q4 2025, primarily due to the handover of completed homes [11] - The company reported a decrease in total liabilities by EUR 15.8 million, reaching EUR 62.9 million by the end of the quarter [12] - The return on equity for 2025 was 28.1%, exceeding the long-term target of 20% [39] Development Projects - The company completed and handed over 83 homes in Q4 2025, including 64 homes in the Regati I phase [9][17] - New construction projects, including the Virmalise and Iseära apartment buildings, are set to begin in 2026, expanding the development portfolio [18][19] - A new development property was acquired in Tallinn for EUR 1.1 million, with an estimated investment volume of EUR 20 million [20] Economic Environment - The 6-month Euribor stabilized at 2.14% by the end of Q4 2025, with inflation in the euro area remaining close to the ECB's target [27] - Consumer price growth in Estonia was 4.1% in Q4 2025, indicating a faster rate than the euro area [28] - A recovery in household purchasing power is expected in 2026, driven by income tax changes and wage growth [29] Future Outlook - The company forecasts a growth in the new developments market in 2026, supported by improved household financial conditions and stable interest rates [34] - The potential to hand over up to 268 homes in 2026 is anticipated, with an estimated sales revenue of EUR 86 million [37] - The company is actively seeking new properties to expand its development portfolio for the next 4-5 years [42]

Company Overview - CoStar Group is a leading global provider of online real estate marketplaces, information, and analytics, operating platforms like Apartments.com [1] Market Activity - CoStar Group reported a 5% increase in U.S. office leasing activity in 2025 compared to 2024, which had the lowest leasing volume in 15 years, excluding 2020 [2][6] - Boston was identified as the top growth market, with office tenants signing leases for approximately 410 million square feet throughout the year [2] Rental Market Trends - Apartments.com reported a national average rent increase to $1,708 in December 2025, marking a 0.1% rise from November and breaking a trend of flat or negative changes over the previous five months [3][6] Financial Performance and Projections - CoStar Group announced a $1.5 billion share repurchase program for 2026, following a $500 million buyback in 2025 [4] - The company projects its 2026 revenue to be between $3.78 billion and $3.82 billion, indicating an approximate 18% growth over the midpoint of its 2025 guidance [4] - Anticipated net income for 2026 is projected to range from $175 million to $215 million, with adjusted EPS between $1.22 and $1.33 [4] Stock Performance - CoStar Group's stock is currently priced at $61.82, reflecting a 4.25% increase or $2.52 [5] - The stock has fluctuated between a low of $58.14 and a high of $62.52 during the day, with a market capitalization of approximately $26.2 billion [5]

Group 1 - The core viewpoint of the article highlights the robust performance of Wuhan's second-hand housing market in 2025, with a transaction area of 10.6847 million square meters, representing a 4.69% increase compared to the same period in 2024, and a total of 103,649 transactions, up 3.05% year-on-year [1] - The number of customer visits to real estate agencies has significantly increased, with one agency reporting a visitor count of approximately 600 groups, nearly tripling from 2024, and another agency noting around 1,500 groups, primarily consisting of first-time homebuyers [4][5] - The average time from listing to sale for second-hand homes has decreased, with a notable 38-day reduction in the average selling period in the fourth quarter compared to the third quarter, indicating a faster turnover in the market [4] Group 2 - The overall transaction volume for second-hand homes in Wuhan has shown a steady growth trend, with a 12.86% increase compared to 2024, and viewing activity has risen by 5.24% [5] - The market is characterized by a structural preference for family-oriented and first-time homebuyer needs, with popular housing types being three-bedroom units of 90-120 square meters and two-bedroom units of 70-90 square meters [7] - The 2025 housing policies have been favorable, with reduced commercial loan rates to 3.05% and a lowered down payment ratio to 15%, making home purchases more attractive for buyers [8]

中指研究院5月1日发布的数据显示，4月份，中国100个城市新建住宅平均价格为每平 方米16764元(人民币，下同)，环比上涨0.14%；同比上涨2.50%。100个城市二手住宅平 均价格为每平方米13892元，环比下跌0.69%；同比下跌7.23%。 中新社北京5月1日电 (记者 庞无忌)4月份，中国主要城市房地产市场延续回稳势头。 从市场表现来看，4月，尽管房企推盘节奏有所放缓，但在部分城市优质改善项目入市 带动下，百城新建住宅价格环比保持结构性上涨。二手住宅方面，4月核心城市二手房 市场维持一定活跃度，但环比有所回落，在挂牌量较高背景下，"以价换量"仍是市场主 流。 从各主要城市来看，受优质改善项目入市带动，4月，杭州新房价格环比上涨0.95%； 上海、合肥紧随其后，涨幅分别为0.61%、0.59%；徐州、金华等7个城市新建住宅价格 环比涨幅在0.2%-0.4%。 中指研究院认为，4月末中共中央政治局会议定调后，楼市各项支持性政策有望加快落 实。需求端，城中村和危旧房改造有望加快，配合货币化安置政策，将对促进需求释 放起到积极作用；更多城市或通过降低购房门槛、加大购房补贴力度等方式激发住房 消费潜力。供应 ...

Core Insights - The second-hand housing market in Hangzhou has shown signs of recovery in November after six months of declining transactions, with a total of 6,561 units signed, representing a month-on-month increase of 10.6% [1] - This increase, while not as high as in previous years, marks the third-highest transaction volume in the last five years, indicating a potential rebound in market confidence [1] Group 1: Market Dynamics - The recovery in November was driven by two main categories of properties: low-priced homes and school district properties [1][4] - Low-priced homes, particularly those with average transaction prices below 25,000 yuan, accounted for 16 out of the top 20 neighborhoods, with many transactions occurring in areas like Qiantang District [1][4] - School district properties also performed well, with only four neighborhoods exceeding an average price of 25,000 yuan, highlighting the influence of educational institutions on property demand [4] Group 2: Competitive Landscape - The absence of popular new properties in the transaction rankings suggests a shift in buyer preferences towards more affordable options, as many high-priced new homes have been sold out or are facing reduced demand [4][5] - The competitive nature of the new housing market, with many developers aggressively launching new projects, is expected to impact second-hand housing sales negatively in December [7] - However, the trend of low-priced homes becoming the mainstay of transactions may mitigate the impact of new housing competition, as these properties are less affected by price fluctuations [7][8] Group 3: Future Outlook - December is typically a busy month for the housing market, but the dynamics this year may differ due to the established demand for low-priced homes [7] - The proportion of second-hand homes sold for under 2 million yuan reached 53.3%, the highest in nearly seven years, indicating a strong market for affordable housing [7] - The overall sentiment in the market is improving, with new residents in Hangzhou looking to purchase homes, which may sustain transaction levels even if they do not surpass November's figures [8]

Core Insights - The Shanghai real estate market is showing structural differentiation amidst adjustments, with core area premium properties continuing to sell well despite an overall decline in supply and demand [1] - The top 30 real estate companies in Shanghai achieved a total sales revenue of 439.29 billion yuan and a sales area of 6.212 million square meters from January to November 2025, indicating a high market concentration [1] - The market is gradually restoring confidence and moving towards stable development, supported by a loose policy environment [1] Sales Performance - The top 30 real estate companies in Shanghai recorded a total equity sales revenue of 295.46 billion yuan and an equity sales area of 4.207 million square meters from January to November 2025 [2] - Nine companies surpassed 10 billion yuan in equity sales, with Poly Developments leading at 28.36 billion yuan, followed by China Merchants Shekou and China Resources Land [2] - The strong performance of these companies reflects their core advantages in resource integration and project operation [2] Project Highlights - The top 10 residential projects in Shanghai achieved a combined sales revenue of 112.6 billion yuan, with a high entry threshold of 6.46 billion yuan [3] - Huangpu District emerged as a hotspot for high-end residential sales, with Shanghai One and Jinling Huating leading in sales revenue [3] - The overall market saw a decline in supply and demand in November 2025, with a total transaction area of 505.2 million square meters and 40,557 transactions from January to November [3]

Financial Data and Key Metrics Changes - Total revenue for Q3 2025 was $194 million, a 15% increase from $169 million in Q3 2024, marking the fifth consecutive quarter of year-over-year revenue growth [5][19] - Adjusted EBITDA for the quarter was $6.9 million compared to break-even in the prior year, indicating a notable return to profitability [26][27] - Net income for the quarter was $240,000, or $0.01 per share, compared to a net loss of $5.4 million, or $0.14 per share in the prior year [25][26] Business Line Data and Key Metrics Changes - Real estate brokerage commissions accounted for 84% of total revenue, or $162 million, a 14% year-over-year increase [19] - Private client transactions grew 24% in volume and 22% in transaction count, contributing 63% of brokerage revenue for the quarter [20] - Financing revenue grew 28% year-over-year to $26 million, driven by a 34% increase in transaction volume totaling $2.9 billion [22] Market Data and Key Metrics Changes - Transaction volume declined 2% to $8.4 billion, with nearly 1,600 transactions closed at an average commission rate of 1.9% [19] - The overall brokerage volume posted a 2% gain compared to a 17% increase in market volume, indicating a challenging comparison due to outsized growth in larger deals last year [9][19] - The market is still estimated to be 15%-20% below normal activity levels, with some regions closer to pre-pandemic trading velocities [46][47] Company Strategy and Development Direction - The company aims to expand market coverage through improved hiring and synergistic acquisitions, focusing on retail and industrial sectors for growth [16][17] - Continued investments in technology and talent retention are prioritized to enhance long-term competitiveness [25][40] - The auction division is gaining traction, accounting for an estimated 25% share of total commercial property auctions in the U.S. [12] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about a new sales and financing cycle as the market resets, driven by expected interest rate reductions and improved lending conditions [14][15] - The company anticipates continued sequential improvement in business as transaction activity drivers improve, despite challenging comparisons to last year's exceptional fourth quarter [28][29] - Ongoing uncertainty around global macro conditions and inflation remains, but a more accommodative Fed is expected to drive transactional activity [28] Other Important Information - The company reported a $4 million legal reserve impacting net income, which management intends to appeal [25][26] - The balance sheet remains strong with no debt and $382 million in cash and marketable securities, reflecting a $49 million increase over the last quarter [27] Q&A Session Summary Question: Discussion on larger transaction segment dynamics - Management noted that while larger deals faced tough comparisons due to an outsized number last year, the business in the $20 million-$50 million range has remained steady [31][32] Question: Customer motivations and market alignment - Management observed increased motivation among private clients to sell due to loan maturities and operational issues, with improved price alignment in the market [35][36] Question: Auction business growth potential - The auction business is expected to grow significantly, leveraging specialized teams and pre-qualified bidders to enhance transaction efficiency [48][49] Question: Nature of litigation and future implications - Management clarified that the litigation matter is an outlier and not indicative of broader issues within the business, with strong grounds for appeal [52][53]