Vornado Adjusted FFO Recovers After a Weak First Quarter

The Tip Desk · November 2, 2026 · 4 min read

Adjusted FFO attributable to common shareholders plus assumed conversions was $126.7 million, or $0.65 a share, for the three months ended September 30, 2026.

Vornado Realty Trust (VNO) reported a net loss attributable to common shareholders of $47.1 million, or $0.25 a share, for the quarter ended September 30, 2026, compared with net income of $11.6 million, or $0.06 a share, a year earlier.

Funds from operations attributable to common shareholders plus assumed conversions was $122.6 million, or $0.62 a share. Adjusting for items that affect period-to-period comparability, FFO as adjusted was $126.7 million, or $0.65 a share, up from $114.5 million, or $0.57 a share, in the year-ago quarter.

The company attributed a $13.4 million increase in adjusted FFO to $17.5 million of rent commencements net of lease expirations, $9.0 million from Park Avenue Plaza, $3.2 million from variable businesses, primarily signage, and $1.7 million other, net, partly offset by $9.3 million lower interest and other investment income and $8.7 million higher interest expense, primarily on the 2033 senior unsecured notes. A further $1.2 million reduction for noncontrolling interests’ share of those items, assumed conversions of convertible securities and the share buyback impact brought the net increase to $12.2 million.

Adjusted FFO of $126.7 million, or $0.65 a share, in the September quarter was below the $131.1 million, or $0.67 a share, reported for the June 2026 quarter. That June figure had been $131.1 million versus $103.1 million, or $0.52 a share, in the March 2026 quarter.

Same-store NOI at share rose 9.0% year over year in the three months ended September 30, 2026, with New York up 10.2% and THE MART up 4.0%. Sequentially, total same-store NOI at share fell 4.1% versus the three months ended June 30, 2026.

On a cash basis, same-store NOI at share rose 3.2% year over year in the September quarter. Excluding a Bloomberg rent abatement offset by a corresponding reduction to Bloomberg’s tenant fund, New York cash-basis same-store NOI at share increased 8.4% year over year.

NOI at share was $300.1 million for the three months ended September 30, 2026, versus $266.7 million a year earlier. New York NOI at share was $260.6 million, including office of $189.1 million, street retail of $49.2 million, residential of $7.4 million, and Alexander’s of $15.0 million. Other NOI at share was $39.4 million. Cash-basis NOI at share was $255.7 million versus $235.9 million a year earlier.

New York office leasing in the three months ended September 30, 2026 totaled 489 thousand square feet, with Vornado’s share at 443 thousand square feet. Initial cash rent was $122.96 per square foot, with a 9.5-year weighted average lease term and 283 thousand square feet of second-generation relet space. GAAP straight-line rent was $116.95, a 37.2% increase over prior straight-line rent of $85.25. Cash-basis initial rent was $119.90, a 25.9% increase over prior escalated rent of $95.25.

Occupancy as of September 30, 2026, at Vornado’s share, was 91.5% for New York office, 93.0% for New York retail, 78.4% for THE MART, 79.5% for 555 California Street, and 87.5% total.

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 November 2031. Fisher Brothers retains 51.0% and continues to manage and lease the 1,200,000 rentable square foot building.

On October 20, 2026, after quarter-end, Vornado contributed 350 Park Avenue, valued at $900 million, or $500 million net of a $400 million mortgage satisfied at closing, and the Vornado/Rudin joint venture contributed 39 East 51st Street into a new 350 Park joint venture with an affiliate of Kenneth C. Griffin to develop an approximately 1.9 million square foot office tower, with Citadel Enterprise Americas LLC as anchor tenant on a 1,050,000 square foot lease and a $3.3 billion construction loan. Vornado holds a 36.1% effective interest, deconsolidated the properties, and said it will recognize an estimated net gain of approximately $485 million in the fourth quarter of 2026.

In April 2026 the Board authorized an additional $300 million share repurchase. As of September 30, 2026, $286.6 million remained available. No shares were repurchased in the three months ended September 30, 2026. In the nine months ended September 30, 2026, Vornado repurchased 4,532,803 shares for $133.3 million at an average price of $29.41.