Vornado Q3 Adjusted FFO Rises 14.0%; 350 Park Deal to Bring Q4 Gain
Vornado Realty Trust's third-quarter adjusted funds from operations rose 14.0% to $0.65 per share, the New York office landlord said Monday, even as it swung to a net loss and flagged a large gain coming in the fourth quarter from its 350 Park Avenue deal with Citadel founder Ken Griffin.
FFO as adjusted totaled $126.7 million, up from $114.5 million, or $0.57 per share, a year earlier, according to its 8-K. Rent commencements net of lease expirations added $17.5 million, and the Park Avenue Plaza stake it bought in June contributed $9.0 million, offset partly by lower interest income and higher interest expense.
Reported FFO was $0.62 per diluted share, up from $0.58.
Net loss
Vornado posted a net loss attributable to common shareholders of $47.1 million, or $0.25 per diluted share, compared with net income of $11.6 million, or $0.06 per share, a year ago. Depreciation and amortization of real property rose to $155.7 million from $103.6 million. Revenue increased 3.1% to $467.7 million.
Same-store growth and leasing
Same-store NOI at share rose 9.0% from a year earlier, led by a 10.2% gain in New York. On a cash basis, same-store NOI rose 3.2%. Excluding a rent abatement given to Bloomberg, New York cash same-store NOI was up 8.4%, the company said.
Vornado leased 489,000 square feet of New York office space in the quarter. On second-generation space, New York office GAAP rents rose 37.2% and cash rents rose 25.9%. New York office occupancy stood at 91.5%.
350 Park Avenue
On Oct. 20, Vornado and Rudin formed a joint venture with an affiliate of Griffin to develop a new office tower of an estimated 1.9 million square feet on the combined 350 Park Avenue, 39 East 51st Street and 40 East 52nd Street sites, the company said. Citadel Enterprise Americas signed a 1,050,000-square-foot anchor lease, and the venture closed a $3.3 billion construction loan.
Vornado now holds a 36.1% effective interest in the project. Its 350 Park Avenue contribution was valued at $900 million, or $500 million net of a $400 million mortgage that was satisfied at closing. Because it deconsolidated the properties, Vornado expects to record an estimated net gain of $485 million in the fourth quarter, the company said.
Buybacks and debt
Vornado repurchased no shares in the third quarter. Through nine months it bought back 4,532,803 shares for $133.3 million at an average of $29.41, and $286.6 million remained under its authorization at Sept. 30.
A $48 million non-recourse mortgage on the 825 Seventh Avenue office condominium, held in a 50% joint venture, matured on Oct. 26 and was not repaid, putting it in maturity default.
By the numbers
- $0.65 FFO as adjusted per share, up 14.0%
- $0.25 net loss per diluted share, versus $0.06 profit
- 9.0% same-store NOI growth
- 91.5% New York office occupancy
- $3.3 billion 350 Park construction loan
- $485 million estimated fourth-quarter gain
Sources
- Vornado Realty Trust Form 8-K with third-quarter 2026 results, filed Nov. 2, 2026 (accession 0000899689-26-000055)
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