Vornado Realty Trust (VNO) investor relations material

Portfolio strategy and market positioning

• Portfolio reshaped for higher quality, adding assets like Park Avenue Plaza and 623 Fifth Avenue, with 350 Park underway.

• Penn District transformation continues, with significant future opportunities expected from the campus.

• Balance sheet deleveraged, stock buybacks executed, and ongoing focus on financial strength.

• Joint venture structure at 350 Park with Citadel, with Citadel increasing its lease commitment to 1,050,000 sq ft.

• Park Avenue Plaza acquired as a long-term value play, with rents 40–50% below market and opportunities for restacking.

New York City office and retail market fundamentals

• Office market fundamentals are the strongest in decades, with tight vacancy rates (Plaza District mid-single digits, Class A trophy buildings at 3–6%).

• Demand driven by talent migration to NYC, especially among young professionals, and broad-based sector growth (finance, tech, legal, media).

• Rents rising across sub-markets, with Penn District and Park Avenue seeing significant increases; Penn rents have doubled in recent years.

• Retail leasing velocity has rebounded, with Times Square and Fifth Avenue rents near or at peak levels ($1,500–$2,000/sq ft in Times Square, $2,500–$3,500/sq ft on Fifth Avenue).

• International retailers are actively seeking flagship NYC locations, contributing to retail strength.

Supply, leasing, and tenant dynamics

• New office supply is limited and expensive to build, with only a handful of projects delivering through 2033, most already 50% pre-leased.

• Tenants are seeking early renewals (3–5 years ahead), driven by limited supply and rising rents; major renewals underway for leases expiring 2029–2031.

• New supply requires rents of $250–$350/sq ft, pushing tenants to renew in existing buildings at lower rates.

• No evidence of price-driven tenant migration to other markets; NYC remains the preferred location for top talent and companies.

• Downtown and Midtown are distinct markets, with some downtown tenants moving uptown, especially to Penn.