Vornado Realty Trust (VNO) Q2 2025 earnings summary

Executive summary

• Net income attributable to common shareholders for Q2 2025 was $743.8M ($3.70/diluted share), up from $35.3M ($0.18/diluted share) year-over-year, driven by an $803.2M gain from the 770 Broadway master lease with NYU.

• FFO for Q2 2025 was $120.9M ($0.60/diluted share), down from $148.9M ($0.76/diluted share) year-over-year; adjusted FFO was $113.3M ($0.56/diluted share) vs. $112.8M ($0.57/diluted share) last year.

• Six-month net income was $830.7M ($4.14/diluted share), up from $26.2M ($0.13/diluted share) year-over-year, reflecting significant one-time gains.

• Leasing, balance sheet, and Penn District performance were highlighted as excellent, with strong demand and robust leasing activity in Manhattan, especially in Class A buildings.

• The company’s stock outperformed the office sector, rising 42% over the past 12 months, nearly double the S&P 500, while peers were negative.

Financial highlights

• Q2 2025 revenues were $441.4M, down from $450.3M year-over-year; six-month revenues were $903.0M, up from $886.6M.

• Q2 2025 NOI at share was $277.7M, slightly down from $280.2M year-over-year; NOI at share-cash basis was $231.7M, down from $279.6M.

• Same store NOI at share increased 5.4% year-over-year for Q2 2025; New York up 1.8%, THE MART up 57.7%.

• Interest and debt expense for Q2 2025 was $87.9M, down $10.5M year-over-year due to lower average debt balances.

• Cash NOI was lower due to a one-time PENN 1 ground rent true-up and free rent from new leases.

Outlook and guidance

• 2025 comparable FFO is expected to be flat versus 2024 at $2.26 per share.

• Management expects cash flow from operations and cash balances to be adequate to fund operations, distributions, and recurring capital expenditures over the next twelve months.

• Full positive impact from PENN 1 and PENN 2 lease-up is expected in 2027, with significant earnings growth projected.

• Occupancy is anticipated to rise into the low 90% range over the next year.

• Dividend for 2025 is expected to be at least $0.74 per share, with potential for growth and a return to a regular quarterly dividend as earnings ramp up.