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Key Reasons to Add Vornado Realty Stock to Your Portfolio Now
VNOVornado(VNO) ZACKS·2025-01-13 20:10

Company Performance - Shares of the company have gained 27 2% over the past six months compared to the industry's decline of 6 3% [1] - The Zacks Consensus Estimate for VNO's 2025 FFO per share has increased by one cent over the past month to 215[6]PortfolioandMarketPosition−Thecompanyownsaportfoliooftop−qualityofficepropertiesinhigh−rent,high−barrier−to−entrymarketssuchasNewYork,Chicago,andSanFrancisco[2]−ThecompanyisstrategicallyfocusedonexpandingitsmarketshareintheNewYorkCityofficemarket[2]−Thecompany′sabilitytooffertop−qualityofficespaceswithclass−apartamenitiesislikelytodriveleasingactivity[6]FinancialStrength−AsofSept30,2024,thecompanyhad2 15 [6] Portfolio and Market Position - The company owns a portfolio of top-quality office properties in high-rent, high-barrier-to-entry markets such as New York, Chicago, and San Francisco [2] - The company is strategically focused on expanding its market share in the New York City office market [2] - The company's ability to offer top-quality office spaces with class-apart amenities is likely to drive leasing activity [6] Financial Strength - As of Sept 30, 2024, the company had 2 6 billion of liquidity, including 1billionincashandcashequivalentsand1 billion in cash and cash equivalents and 1 6 billion available under its revolving credit facilities [4] - The company's healthy balance sheet and ample liquidity enable it to take advantage of future investment opportunities and fund development projects [4] Portfolio Repositioning - The company is focused on improving its core business through opportunistic developments, divestitures, and business spin-offs [3] - Strategic sell-outs provide the company with the resources to reinvest in opportunistic developments and redevelopments [3] Tenant Base - The company enjoys a well-diversified, high-end tenant roster that includes several industry bellwethers, enabling stable rental revenues over time [7] Industry Trends - Rents in newly constructed or best-in-class redeveloped assets with abundant amenities at transit-centric locations have risen, benefiting the company [7] Other REIT Stocks - OUTFRONT Media (OUT) and SL Green Realty (SLG) are other top-ranked stocks in the REIT sector, each carrying a Zacks Rank 2 [5] - The Zacks Consensus Estimate for OUTFRONT Media's 2024 FFO per share has been raised by 1 8% over the past two months to 173[5]−TheZacksConsensusEstimateforSLGreen′s2024FFOpersharehasbeenraisedmarginallyoverthepasttwomonthsto1 73 [5] - The Zacks Consensus Estimate for SL Green's 2024 FFO per share has been raised marginally over the past two months to 7 78 [5]