Core Insights - HGI Capital Management has completely exited its position in Vornado Realty Trust, selling 88,686 shares valued at approximately $3.4 million, as reported in a November 14 SEC filing [2][3]. Company Overview - Vornado Realty Trust is a prominent office REIT with significant operations in New York City, as well as assets in Chicago and San Francisco, focusing on sustainability and managing around 25 million square feet of LEED-certified buildings [6][8]. - The company reported a market capitalization of $7.3 billion, with a revenue of $1.8 billion and a net income of $905.6 million for the trailing twelve months [4]. Financial Performance - Vornado's quarterly net income was $11.6 million, a recovery from a loss in the previous year, and funds from operations (FFO) increased to $117.4 million, or $0.58 per share, compared to $0.50 a year earlier [9]. - Same-store net operating income (NOI) improved by 7.5% on a GAAP basis, with notable increases in New York office rents [9]. Market Context - Despite improving operational metrics, Vornado Realty Trust faces structural challenges due to sluggish leasing demand, high financing costs, and uneven recovery in major urban markets [9][10]. - The stock price of Vornado Realty Trust was $34.82, reflecting a 20% decline over the past year, significantly underperforming the S&P 500, which increased by 13% during the same period [3].

Financial Data and Key Metrics Changes - Third quarter 2025 revenue was $12.3 million, down from $15.4 million in the third quarter of 2024, primarily due to the sale of 9 Times Square in the fourth quarter of 2024 [10] - GAAP net gain attributable to common stockholders was $35.8 million in the third quarter of 2025, influenced by a $44.3 million non-cash gain related to the foreclosure at 1140 Avenue of the Americas, compared to a net loss of $34.5 million in the third quarter of 2024 [10] - Adjusted EBITDA for the third quarter of 2025 was $1.9 million, down from $4.1 million in the same quarter of 2024 [10] - Cash net operating income decreased to $5.3 million from $7 million in the third quarter of 2024 [10] Business Line Data and Key Metrics Changes - The company executed a significant lease renewal at 196 Orchard, extending the weighted average remaining lease term of the portfolio to 6.2 years, up from 5.9 years at the end of the second quarter [5] - Near-term lease expirations represent 8% of annualized straight-line rent, with 56% of leases now extending beyond 2030, an increase from 54% last quarter [6] Market Data and Key Metrics Changes - The company owns six properties, with a real estate portfolio valued at approximately $390 million and covering about 743,000 square feet, primarily located in Manhattan [7] - The tenant base includes large investment-grade firms, which is expected to support occupancy growth and tenant retention [7] Company Strategy and Development Direction - The company is focused on unlocking value, diversifying holdings, and strengthening the balance sheet through the sale of properties like 123 Williams Street and 196 Orchard [8] - A strategic disposition of 1140 Avenue Americas is anticipated to close in the fourth quarter of 2025, which is expected to eliminate a $99 million liability [8] - The strategy includes proactive management of the balance sheet and capital allocation towards higher-return assets [8] Management's Comments on Operating Environment and Future Outlook - Management emphasized the importance of tenant retention, property improvements, and cost efficiency in the current operating environment [5] - The company is focused on enhancing operational flexibility and generating cash for reinvestment into higher-yielding assets [12] Other Important Information - The company has changed its audit partners to CBIZ CPAs to streamline costs and reduce general and administrative expenses [11] - There was no dispute or conflict with the prior accounting firm during the change [11] Q&A Session Summary - No specific questions or answers were provided in the content regarding the Q&A session. The call concluded without any detailed inquiries from participants [13]