Update shared on20 Sep 2025
Fair value Increased 3.02%Analysts have raised Vornado Realty Trust’s price target from $37.86 to $39.00, citing improved 2027 AFFO/FFO estimates, stronger New York office leasing fundamentals, and a healthier transaction environment, despite some concerns around recent share price outperformance and sector-wide target adjustments.
Analyst Commentary
- Bullish analysts have incorporated updated 2027 AFFO and FFO estimates, reflecting improved earnings growth potential.
- Upgrades reflect anticipated strength and stability in the New York office market, with improved leasing activity, healthier transaction environments, and balanced risk/reward.
- Analysts expect continued improvement in leasing fundamentals, manageable lease expirations, and strong leasing spreads to drive higher portfolio occupancy.
- Bearish analysts cite recent share price outperformance, rich current risk premiums, and cash flow trending down, even as the stock trades at premium multiples.
- Some target reductions are driven by post-quarter model updates, adjustments in occupancy and interest expense assumptions, and sector-wide price target revisions following Q2 results.
What's in the News
- Vornado Realty Trust completed the acquisition of the 623 Fifth Avenue office condominium for $218 million; the 36-story building is currently 75% vacant and will be repositioned as a premier Class A boutique office asset (Key Developments, 2025-09-08/08-25).
- Vornado was among the shortlisted bidders for Paramount Group, a major Manhattan and San Francisco office landlord, but Rithm Capital neared a deal to acquire Paramount ahead of other contenders including Blackstone and SL Green (The Wall Street Journal, 2025-09-16; TheRealDeal, 2025-08-27).
- Verizon signed a 19-year lease to relocate its New York headquarters to Vornado’s renovated PENN 2 office tower, occupying nearly 200,000 square feet and establishing a retail location, further enhancing the attractiveness of THE PENN DISTRICT campus (Key Developments, 2025-07-29).
- Vornado reported real estate impairment losses of $542,000 for Q2 2025, indicating continued challenges in parts of its office portfolio (Key Developments, 2025-08-04).
- The company announced no share repurchases between April and June 2025, having previously completed the repurchase of 2,024,495 shares (1.06% of shares outstanding) for $29.14 million under its ongoing buyback program (Key Developments, 2025-08-04).
Valuation Changes
Summary of Valuation Changes for Vornado Realty Trust
- The Consensus Analyst Price Target has risen slightly from $37.86 to $39.00.
- The Consensus Revenue Growth forecasts for Vornado Realty Trust has significantly fallen from 3.0% per annum to 2.0% per annum.
- The Net Profit Margin for Vornado Realty Trust has significantly risen from 1.06% to 1.24%.
Disclaimer
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