Verizon Communications plans to open a new Manhattan headquarters at Penn 2, a redeveloped office tower near Penn Station, marking a high-profile commitment to New York’s core business district. The move places one of the nation’s largest telecom companies at the center of a major real estate renewal effort led by Vornado Realty Trust.The decision signals confidence in top-tier offices and transit-rich locations. It also adds momentum to the Penn District overhaul, which has aimed to refresh the area around ...

The most oversold stocks in the real estate sector presents an opportunity to buy into undervalued companies.The RSI is a momentum indicator, which compares a stock’s strength on days when prices go up to its strength on days when prices go down. When compared to a stock’s price action, it can give traders a better sense of how a stock may perform in the short term. An asset is typically considered oversold when the RSI is below 30, according to Benzinga Pro.Here's the latest list of major oversold players ...

The most oversold stocks in the real estate sector presents an opportunity to buy into undervalued companies.The RSI is a momentum indicator, which compares a stock’s strength on days when prices go up to its strength on days when prices go down. When compared to a stock’s price action, it can give traders a better sense of how a stock may perform in the short term. An asset is typically considered oversold when the RSI is below 30, according to Benzinga Pro.Here's the latest list of major oversold players ...

Group 1: Company Overview - Vornado Realty Trust (NYSE: VNO) has experienced a 30% decline in value over the past year due to high interest rates and challenging office market conditions [1] - The company primarily focuses on office properties within a diversified real estate portfolio that also includes retail and residential properties located in major cities like New York City, Chicago, and San Francisco [4] Group 2: Market Conditions - The office market has faced significant pressure since the pandemic, driven by the rise of remote and hybrid work, leading to uncertainty in demand for office space [5] - Recent reports indicate a recovery in the office market, with leasing activity in Q4 reaching a post-pandemic high and annual leasing activity increasing by 5.2% [5] - Large-scale transactions in the office sector have risen by 15% year over year, indicating growing confidence among companies in committing to office space [5] - U.S. office sales volume has increased for seven consecutive quarters, reflecting heightened investor confidence in purchasing office properties [5] - The pipeline for new office constructions is trending down towards a record low, suggesting a potential shift towards a new growth cycle in the office sector according to JLL [5] Group 3: Interest Rate Impact - REITs, including Vornado, are highly sensitive to interest rate changes, with higher rates increasing borrowing costs and reducing cash flows, while lower rates can enhance their value by decreasing borrowing costs [2] - Although short-term interest rates have fallen due to Federal Reserve actions, longer-term rates, such as the 10-year Treasury, have not decreased as significantly, which has a greater impact on REIT values [3] - A meaningful decline in long-term interest rates, particularly if inflation dips below 2%, could positively influence Vornado's share price [3]

Core Viewpoint - Vornado Realty (VNO) has experienced a 30% decline from its 52-week high, despite an increase in its occupancy rate, indicating a strengthening demand for prime office space in Manhattan [1] Group 1: Company Performance - Vornado Realty's occupancy rate is rising, suggesting a positive trend in demand for office space [1] - The company's stock price fluctuations reflect broader market dynamics, which can lead to significant wealth creation or destruction over time [1] Group 2: Investment Strategy - Pacifica Yield focuses on long-term wealth creation by targeting undervalued high-growth companies, high-dividend stocks, REITs, and green energy firms [1]

we discuss ideas like this as they happen in more detail. All active investors are welcome to join on a free trial and ask any question in our chat room full of sophisticated traders and investors.In the following lines, we will take a look at a company that we have reviewed before - Vornado Realty Trust ( VNO ) and its financial instruments (you can see our last article here ). VNO announcedArbitrage Trader, aka Denislav Iliev has been day trading for 15+ years and leads a team of 40 analysts. They identif ...

Core Insights - Vornado Realty Trust's (VNO) fourth-quarter 2025 adjusted funds from operations (FFO) were 55 cents per share, missing the Zacks Consensus Estimate of 57 cents and reflecting a 9.8% year-over-year decline [1][11] - Total revenues for the quarter were $453.7 million, exceeding the Zacks Consensus Estimate of $434.8 million, although it showed a slight year-over-year decrease [2][11] - The company reported a full-year FFO of $2.32 per share for 2025, which was higher than the previous year's $2.26 but below the consensus estimate of $2.33 [2] Financial Performance - Total same-store net operating income (NOI) for the quarter was $260.6 million, up from $248.1 million in the prior-year quarter, with significant increases in the New York and THE MART portfolios [4] - The New York office portfolio saw 960,000 square feet leased at an initial rent of $95.36 per square foot, with a weighted average lease term of 9.9 years [5] - The New York retail portfolio leased 21,000 square feet at an initial rent of $273.56 per square foot, with a weighted average lease term of 8.2 years [6] Occupancy Rates - The total occupancy rate for the New York portfolio was 90.0%, an increase of 240 basis points year over year, while THE MART's occupancy was 81.5%, up 140 basis points [8] - Conversely, occupancy for the 555 California Street portfolio decreased to 88.9%, down 310 basis points year over year [8] Balance Sheet - Vornado ended the fourth quarter with cash and cash equivalents of $840.9 million, a decrease from $1.01 billion as of September 30, 2025 [9]

Vornado Realty Trust (NYSE:VNO) Q4 2025 Earnings call February 10, 2026 10:00 AM ET Company ParticipantsGlen Weiss - EVPMichael Franco - President and CFOSteve Borenstein - EVP and Corporate CounselSteven Roth - Chairman and CEOThomas Sanelli - EVP of Finance and Chief Administrative OfficerConference Call ParticipantsAlexander Goldfarb - AnalystAnnabelle Ayer - AnalystAnthony Paolone - AnalystDylan Burzinski - AnalystFloris van Dijkum - AnalystJana Galan - AnalystJohn Kim - AnalystNick Yulico - AnalystSeth ...

Financial Data and Key Metrics Changes - Comparable FFO for 2025 was $2.32 per share, slightly higher than 2024 and better than anticipated [28] - Fourth quarter comparable FFO was $0.55 per share, down from $0.61 per share in Q4 2024, primarily due to higher net interest expense [28] - Overall same-store GAAP NOI increased by 5% for the quarter, while same-store cash NOI decreased by 8.3% [29] Business Line Data and Key Metrics Changes - In 2025, the company leased 4.6 million sq ft of office space, with 3.7 million sq ft in Manhattan, marking the highest Manhattan leasing volume in over a decade [8] - Average starting rents in Manhattan were $98 per sq ft, with mark-to-markets of +10.4% GAAP and +7.8% cash [9] - Office occupancy rose from 88.8% to 91.2% [13] Market Data and Key Metrics Changes - The New York office market is experiencing a significant recovery, with demand from finance, tech, and other industries robust [5] - The financing markets for Class A assets are strong, with CMBS spreads at their tightest since 2021 [31] - The company has a liquidity of $2.39 billion, including cash balances of $978 million and undrawn credit lines of $1.41 billion [24] Company Strategy and Development Direction - The company is focused on the Manhattan office market, believing it to be the best in the country, and anticipates a tightening landlord's market [5] - Development projects include 350 Park Avenue and 623 Fifth Avenue, with construction expected to commence soon [16][18] - The company is also considering several options for a new development site at 3 East 54th Street [20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ongoing recovery of the New York office market and expects significant earnings growth in 2027 [30] - The company plans to maintain a highly liquid balance sheet while exploring stock buybacks due to perceived undervaluation [26][27] - Management noted that the difference between leased occupancy and GAAP occupancy represents a significant revenue opportunity, expected to materialize over the next few years [14][54] Other Important Information - The company has extended maturities on nearly $3.5 billion of debt through 2031 [25] - S&P has changed the company's credit outlook from negative to stable, affirming its credit rating [34] - The company is actively engaged in stock buybacks, having repurchased 2.35 million shares for $80 million recently [26] Q&A Session Summary Question: Changes in the structure of 350 Park Avenue - Management confirmed that there were amendments to the agreement, allowing for flexibility in equity percentage, but no significant changes in economics [36] Question: Yield expectations for 350 Park Avenue - Management indicated that Citadel's rent will be based on a formula related to financing costs, with an appetite for more space than initially planned [38][39] Question: Overall leasing pipeline and tenant conversations - The leasing pipeline remains strong, with significant activity from new tenants and expansions, particularly in financial services and tech [42] Question: Cash vs. GAAP same-store NOI - Management expects to see cash NOI turn positive in the second half of 2026 as free rent periods expire [48] Question: Retail market conditions on Upper Fifth Avenue - The retail market is improving but still struggling to reach peak rents from previous years [51] Question: Difference between GAAP and leased occupancy - The $200 million difference is not annualized and will be recognized as tenants build out their spaces [54] Question: Dividend restoration timeline - Management indicated that a return to a normal dividend is not expected this year but will be pursued as income stabilizes [82] Question: Sources and uses of funds for upcoming projects - Management outlined a capital plan that includes financing, asset sales, and careful management of buybacks [89]

Financial Data and Key Metrics Changes - Comparable FFO for 2025 was $2.32 per share, slightly higher than 2024 and better than anticipated [26] - Fourth quarter comparable FFO was $0.55 per share, down from $0.61 per share in Q4 2024, primarily due to higher net interest expense [26] - Same-store GAAP NOI increased by 5% for the quarter, while same-store cash NOI decreased by 8.3% [27] Business Line Data and Key Metrics Changes - In 2025, the company leased 4.6 million sq ft of office space, with 3.7 million sq ft in Manhattan, marking the highest leasing volume in over a decade [6] - Average starting rents in Manhattan were $98 per sq ft, with mark-to-markets of +10.4% GAAP and +7.8% cash [7] - Office occupancy rose from 88.8% to 91.2% in 2025, driven by significant leasing activity [12][28] Market Data and Key Metrics Changes - The New York office market is experiencing a tightening landlord's market, with robust tenant demand from finance and tech sectors [4] - The financing markets for Class A assets are strong, with CMBS spreads at their tightest since 2021 [29] - The company has a liquidity of $2.39 billion, including cash balances of $978 million and undrawn credit lines of $1.41 billion [22] Company Strategy and Development Direction - The company is focused on its Manhattan-centric office strategy, with significant developments planned, including 350 Park Avenue and 623 Fifth Avenue [5][15] - The company aims to capitalize on the shortage of large blocks in better buildings by bringing prime space to market [14] - The management team is committed to maintaining a highly liquid, cash-heavy balance sheet while exploring stock buybacks [22][24] Management's Comments on Operating Environment and Future Outlook - Management believes the current fundamentals in Manhattan are the best in 20 years, with expectations for continued tightening in the landlord's market [4] - The company anticipates significant earnings growth in 2027 as the positive impact from PENN 1 and PENN 2 lease-up takes effect [28] - Management acknowledges the disconnect between stock price and asset value, viewing current stock buybacks as an attractive investment opportunity [24][25] Other Important Information - The company has extended maturities on nearly $3.5 billion of debt through 2031 and has been active in refinancing to bolster liquidity [23][30] - The acquisition of 623 Fifth Avenue is viewed as a strategic move, with plans to create a high-quality boutique office space [15][16] - The company is also developing a 475-unit rental residential building on 34th Street, expected to break ground in the fall [19] Q&A Session Summary Question: Changes in the structure of 350 Park Avenue - Management confirmed that there were amendments related to the overall deal, providing flexibility in equity percentage [35] Question: Overall leasing pipeline and tenant conversations - The leasing pipeline remains strong, with over half of the activity from new tenants and significant expansion from financial services and law firms [40] Question: Cash and GAAP same-store NOI difference - Management expects to see cash NOI turn positive in the second half of 2026 as free rent periods end [45] Question: Retail market conditions on Upper Fifth Avenue - The retail market is improving but still struggling to meet top-tick rents from four or five years ago [48] Question: Difference between GAAP occupancy and leased occupancy - The $200 million difference is not annualized and will be recognized as tenants build out their spaces [51]