Update shared on13 Oct 2025
Fair value Increased 1.71%The analyst price target for Vornado Realty Trust increased modestly from $39.00 to $39.67. Analysts cited improved office leasing trends in New York and updates to forward financial models as drivers of this adjustment.
Analyst Commentary
Recent Street research on Vornado Realty Trust demonstrates a blend of optimism and caution regarding the company's outlook. The following summarizes key bullish and bearish takeaways from recent analyst actions and commentary, with a focus on valuation, execution, and growth prospects.
Bullish Takeaways- Bullish analysts have put forward higher price targets, citing the integration of 2027 adjusted funds from operations (AFFO) estimates and solidifying longer-term growth assumptions.
- Continued improvement in New York office leasing and healthier transaction activity are viewed as catalysts for better portfolio performance and occupancy rates.
- Upgrades in ratings reflect growing confidence that the company's balanced risk/reward profile and ongoing leasing momentum position it for improved share performance.
- Some highlighted outlooks expect that lower interest rates and robust market spreads will support future earnings growth despite premium current valuations.
- Bearish analysts have trimmed price targets for Vornado, indicating caution around earnings revision trends following recent quarterly results.
- Concerns persist regarding declining cash flow and the company trading at premium earnings multiples, which may limit immediate upside potential.
- While leasing activity is expected to remain healthy, the trajectory of near-term lease expirations and overall cash flow stabilization remain areas to watch.
- The presence of Hold and Neutral ratings suggests analysts see the need for further concrete evidence of accelerating growth to warrant significant valuation expansion.
What's in the News
- Vornado Realty Trust has completed the acquisition of the 623 Fifth Avenue office condominium for $218 million, with plans to reposition and redevelop it into a premier, Class A boutique office building. The property is currently 75% vacant. (Key Developments)
- Vornado is among the suitors making bids to acquire Paramount Group, along with firms such as SL Green, Empire State Realty, Blackstone, and Rithm Capital. The sales process has moved into a second round of bidding. (TheRealDeal)
- Rithm Capital is reportedly nearing an agreement to acquire Paramount Group, with competing interest from Vornado, Blackstone, and SL Green. (Wall Street Journal)
- Verizon has announced it will relocate its New York headquarters to PENN 2, Vornado’s reimagined office tower in THE PENN DISTRICT, signing a 19-year lease for nearly 200,000 square feet. (Key Developments)
- Vornado Realty Trust reported real estate impairment losses of $542,000 for the second quarter ended June 30, 2025. (Key Developments)
Valuation Changes
- Consensus Analyst Price Target has risen slightly from $39.00 to $39.67.
- Discount Rate has decreased modestly from 8.43% to 8.40%.
- Revenue Growth forecast remains virtually unchanged at approximately 1.98%.
- Net Profit Margin is stable, with only a negligible movement from 1.24% to 1.24%.
- Future P/E ratio has increased from 392.9x to 399.3x, which reflects a moderate rise in forward valuation multiples.
Disclaimer
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