Vornado's Retail JV Boosts Strength With $450M Financing

Core Viewpoint - Vornado Realty Trust has strengthened its financial position through a recent $450 million financing for a prime retail property, which is expected to enhance its long-term growth potential in high-demand markets [1][2][3]. Group 1: Financing and Financial Position - Vornado's 52$450 million financing for 1535 Broadway, featuring a fixed interest rate of 6.90% and maturing in May 2030 [1]. - After transaction costs and reserves, $407 million of the net proceeds was used to partially redeem preferred equity of Vornado's Retail JV [1]. - As of December 31, 2024, Vornado had$2.5 billion in liquidity, including $950 million in cash and cash equivalents and$1.5 billion available under its revolving credit facilities [2]. Group 2: Market Position and Growth Potential - Vornado focuses on high-rent, high barrier-to-entry geographic markets and has a diversified tenant base, which is expected to drive long-term growth [3]. - Over the past six months, Vornado's shares have declined by 15.1%, compared to an 11.4% decline in the broader industry [3]. Group 3: Comparative Analysis - Other better-ranked stocks in the REIT sector include Cousins Properties and Welltower, both currently rated as Zacks Rank 2 (Buy) [4]. - The Zacks Consensus Estimate for Cousins Properties' 2024 funds from operation (FFO) per share has increased by 1.1% to $2.79 [4]. - Welltower's current-year FFO per share estimate has also been raised marginally to$4.95 [5].