Update shared on05 Sep 2025
Following Q2 results and modest model adjustments, analysts maintain a neutral stance on Vornado Realty Trust due to mixed fundamentals and elevated risk premiums, resulting in an unchanged consensus price target of $37.86.
Analyst Commentary
- Analysts updated price targets following Q2 results and model adjustments, reflecting recent earnings performance and post-quarter changes.
- Modest tweaks to occupancy and interest expense assumptions drove incremental target changes, as underlying real estate fundamentals remain in flux.
- Bearish analysts express caution, citing share outperformance over the past quarter and a "high bar" for continued performance.
- Observations of elevated risk premiums suggest limited further upside potential in the near term for the stock.
- Most analysts maintain neutral or sector-perform ratings, signaling limited conviction in either a strong bullish or bearish case at current valuation levels.
What's in the News
- Vornado Realty Trust is a second-round bidder for Paramount Group in an ongoing sale process, alongside other major real estate players including SL Green, Empire State Realty, Blackstone, and Rithm Capital (TheRealDeal).
- Vornado has agreed to acquire the 623 Fifth Avenue office condominium—a 36-story, 382,500 square foot building above Saks Fifth Avenue—for $218 million, with plans to redevelop the 75% vacant asset into a top-tier boutique office property that will complement its Midtown Manhattan portfolio; closing is expected in September 2025, with delivery to tenants in 2027 (Key Developments).
- Verizon signed a 19-year, nearly 200,000-square-foot lease to move its New York headquarters to Vornado’s redeveloped PENN 2 tower, bringing a major tenant to THE PENN DISTRICT campus and opening a new retail location on Seventh Avenue; the project offers substantial amenities, modern features, and improved commuter access (Key Developments).
- Vornado reported a real estate impairment loss of $542,000 for the second quarter ended June 30, 2025 (Key Developments).
- The company has completed the repurchase of 2,024,495 shares (1.06% of shares) for $29.14 million under its ongoing buyback program announced in April 2023, with no shares repurchased between April 1 and June 30, 2025 (Key Developments).
Valuation Changes
Summary of Valuation Changes for Vornado Realty Trust
- The Consensus Analyst Price Target remained effectively unchanged, at $37.86.
- The Future P/E for Vornado Realty Trust has fallen from 464.97x to 427.76x.
- The Discount Rate for Vornado Realty Trust remained effectively unchanged, moving only marginally from 8.34% to 8.33%.
Disclaimer
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