Vornado Realty Trust (VNO) Q4 2025 earnings summary

Executive summary

• Achieved industry-leading leasing activity in 2025, with 4.6 million sq ft leased, including record Manhattan volumes and strong performance in San Francisco and Chicago.

• Net income attributable to common shareholders for 2025 was $842.9M ($4.20/share), up from $8.3M ($0.04/share) in 2024, mainly due to a $803.2M gain from the 770 Broadway master lease with NYU and a $76.2M gain from the 666 Fifth Avenue sale to UNIQLO.

• Funds from Operations (FFO) for 2025 was $486.8M ($2.42/share), up from $470.0M ($2.37/share) in 2024; adjusted FFO was $465.6M ($2.32/share) versus $447.1M ($2.26/share) in 2024.

• Major development projects are advancing, including 350 Park Avenue (with Citadel as anchor tenant), PENN 15, and 623 5th Avenue, with significant leasing and redevelopment milestones.

• Retail and signage businesses are performing well, with high demand and new initiatives in key locations.

Financial highlights

• Comparable FFO for 2025 was $2.32 per share, slightly higher year-over-year; Q4 comparable FFO was $0.55 per share, down from $0.61 due to higher interest expense and prior-year lease termination income.

• Same-store GAAP NOI increased 5% for the quarter, while same-store cash NOI declined 8.3% due to free rent and ground lease adjustments.

• Net debt to EBITDA improved to 7.7x from 8.6x at the start of the year; fixed charge coverage ratio continues to rise.

• Revenues for 2025 were $1.81B, up from $1.79B in 2024.

• Q4 2025 FFO was $112.9M ($0.56/share), down from $117.1M ($0.58/share) in Q4 2024; adjusted FFO was $110.9M ($0.55/share) versus $122.2M ($0.61/share) in Q4 2024.

Outlook and guidance

• 2026 comparable FFO expected to be in line with 2025, with significant earnings growth projected for 2027 as PENN 1 and PENN 2 lease-up impacts materialize.

• Cash NOI expected to turn positive in the second half of 2026 as free rent burns off and tenants begin paying rent.

• New York office occupancy reached 91.2% and is expected to continue rising.

• Active development projects include PENN 2, Sunset Pier 94 Studios, and 623 Fifth Avenue, with a total budget of $1.43B and projected stabilization between 2026 and 2028.

• Management highlights risks from interest rate fluctuations, inflation, and market conditions affecting tenants and real estate values.