Earnings

Vornado Adjusted FFO Rebounds After Sequential Slip

The Tip Desk · August 3, 2026 · 4 min read

Adjusted FFO was $0.67 a share in the June quarter, reversing a first-quarter sequential decline.

Vornado Realty Trust (VNO) reported adjusted funds from operations of $131.1 million, or $0.67 a share, for the three months ended June 30, 2026, a $17.8 million, or $0.11 a share, increase from $113.3 million, or $0.56 a share, a year earlier.

The sequential path mattered as much as the year-over-year lift. Adjusted FFO per share had fallen to $0.52 in the first quarter of 2026 from $0.55 in the fourth quarter of 2025. The June quarter reversed that slip.

The year-over-year increase reflected rent commencements net of lease expirations of $13.3 million, the NYU master lease at 770 Broadway of $8.9 million, variable businesses, primarily signage, of $8.0 million, and Park Avenue Plaza of $1.8 million, offset by interest expense, primarily on 2033 senior unsecured notes, of $10.2 million and other items net of $2.3 million.

Net income attributable to common shareholders was $16.4 million, or $0.08 a share, down from $743.8 million, or $3.70 a share, a year earlier. The decrease was primarily due to an $803.2 million gain related to the 770 Broadway master lease with New York University in the year-ago quarter.

NOI at share was $304.1 million, up from $277.7 million a year earlier. New York NOI at share was $251.7 million, with Office (includes base retail) at $183.4 million, Street Retail at $52.5 million, Residential at $6.7 million, and Alexander’s at $9.0 million. Other NOI at share was $52.4 million, with THE MART at $27.3 million, 555 California Street at $14.9 million, and Other investments at $10.2 million.

Same-store NOI at share rose 9.8% year over year, with New York up 11.9% and THE MART up 9.1%. Same-store NOI at share on a cash basis rose 2.9%. Sequential same-store NOI at share rose 8.3% from the March quarter, with THE MART up 71.8%.

Occupancy at Vornado’s share as of June 30, 2026 was 90.8% for New York office and 92.2% for New York retail.

On June 11, 2026, Vornado completed the purchase of a 49.0% interest in Park Avenue Plaza at a gross asset valuation of $1.1 billion, or $950 per square foot, subject to its share of a $575 million loan at a fixed 2.99% rate maturing in November 2031. Fisher Brothers retains 51.0% and continues to manage and lease the 1,200,000 rentable square foot building.

Alexander’s, in which Vornado owns a 32.4% interest, sold Rego Park I for $235.5 million on May 28, 2026. Vornado recognized a $44.3 million share of the net gain. A 50.0%-owned joint venture sold 606 Broadway on May 14, 2026, producing a $32.1 million gain on debt extinguishment, of which $15.9 million was attributable to noncontrolling interests.

Vornado repaid $400 million of 2.15% senior unsecured notes at their June 1, 2026, maturity, using a portion of the $494 million of net proceeds from $500 million of 5.75% senior unsecured notes due 2033 issued in January 2026. An affiliate of Kenneth C. Griffin provided a $400 million mortgage on 350 Park Avenue in March 2026 to defease an existing loan tied to the site’s development; Citadel Enterprise Americas LLC assigned its master lease to a Griffin affiliate, with net rent of $16.0 million a year.

On March 9, 2026, Vornado entered into a forbearance on the $244.5 million non-recourse mortgage on 888 Seventh Avenue that matured unpaid on December 10, 2025. Lenders waived default interest through March 2027 while scheduled interest and amortization continue to accrue and are deferred.

The Board authorized an additional $300 million share repurchase on April 29, 2026. As of August 3, 2026, $286.6 million remained available. During the June quarter, Vornado repurchased 1,787,090 shares for $53.5 million at an average of $29.92 a share.

Active development remained concentrated in 623 Fifth Avenue, with $205.7 million of remaining cash expenditures and a projected leasing stabilization year of 2028.

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