Vornado Realty Trust (VNO) Bank of America 2024 Global Real Estate Conference summary

Market and leasing trends

• New York City office activity has returned to pre-COVID levels, with strong leasing, tourism, and retail sales.

• Leasing momentum is robust, especially in high-quality buildings, with 1.6 million sq ft leased year-to-date at $119/sq ft average starting rent.

• Smaller tenants (5,000–20,000 sq ft) are returning, filling in market gaps and driving rhythmic leasing volume.

• Tech sector demand has rebounded, with major tenants like Apple, Amazon, Google, and Meta active and some in expansion mode.

• Pipeline includes about 2 million sq ft of deals in various negotiation stages, indicating continued strong activity into 2025.

Penn District redevelopment and strategy

• Penn District transformation is nearly complete, with new plazas, amenities, and 1.5 million sq ft leased at $95/sq ft post-redevelopment.

• Amenity-rich environment and improved streetscapes have enhanced tenant experience and tour impressions.

• Retail and F&B offerings have expanded, supporting a vibrant, all-day district atmosphere.

• Focus remains on leasing up remaining vacancies and attracting tenants who can pay premium rents.

• Future development on additional sites is planned as market conditions allow.

Financial position and capital strategy

• Liquidity stands at $2.7 billion, with $1.1 billion in cash and $1.6 billion undrawn revolver capacity.

• All 2024 debt maturities have been addressed; focus is now on 2025 and beyond.

• Proceeds from asset sales, such as Uniqlo, will further strengthen the balance sheet.

• No plans to issue equity; preference is for asset sales and debt market solutions to manage leverage.

• Capital markets are stabilizing, with improved conditions for both retail and office financing.