NYSE:VNO.PRM

Stock Analysis Report

Executive Summary

Vornado’s portfolio is concentrated in the nation’s key market — New York City — along with the premier asset in both Chicago and San Francisco.


Snowflake Analysis

Solid track record average dividend payer.


Similar Companies

Share Price & News

How has Vornado Realty Trust's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: VNO.PRM has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-4.0%

VNO.PRM

-10.1%

US REITs

-10.6%

US Market


1 Year Return

13.4%

VNO.PRM

5.9%

US REITs

5.2%

US Market

Return vs Industry: VNO.PRM exceeded the US REITs industry which returned 11.6% over the past year.

Return vs Market: VNO.PRM exceeded the US Market which returned 10.2% over the past year.


Shareholder returns

VNO.PRMIndustryMarket
7 Day-4.0%-10.1%-10.6%
30 Day-2.3%-6.5%-8.5%
90 Day0.5%-4.5%-4.6%
1 Year19.6%13.4%10.1%5.9%7.4%5.2%
3 Yearn/a24.8%9.3%31.7%23.2%
5 Yearn/a48.4%17.9%56.4%39.3%

Price Volatility Vs. Market

How volatile is Vornado Realty Trust's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Vornado Realty Trust undervalued compared to its fair value and its price relative to the market?

5.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: VNO.PRM ($26.18) is trading above our estimate of fair value ($26.16)

Significantly Below Fair Value: VNO.PRM is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: VNO.PRM is good value based on its PE Ratio (3.5x) compared to the REITs industry average (36.3x).

PE vs Market: VNO.PRM is good value based on its PE Ratio (3.5x) compared to the US market (17.1x).


Price to Earnings Growth Ratio

PEG Ratio: VNO.PRM's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: VNO.PRM is good value based on its PB Ratio (1.9x) compared to the US REITs industry average (1.9x).


Next Steps

Future Growth

How is Vornado Realty Trust forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

-130.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: VNO.PRM's earnings are forecast to decline over the next 3 years (-132% per year).

Earnings vs Market: VNO.PRM's earnings are forecast to decline over the next 3 years (-132% per year).

High Growth Earnings: VNO.PRM's earnings are forecast to decline over the next 3 years.

Revenue vs Market: VNO.PRM's revenue (0.9% per year) is forecast to grow slower than the US market (7.6% per year).

High Growth Revenue: VNO.PRM's revenue (0.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: VNO.PRM's Return on Equity is forecast to be low in 3 years time (2.9%).


Next Steps

Past Performance

How has Vornado Realty Trust performed over the past 5 years?

49.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: VNO.PRM has a large one-off gain of $3.2B impacting its December 31 2019 financial results.

Growing Profit Margin: VNO.PRM's current net profit margins are higher than last year (17.7%).


Past Earnings Growth Analysis

Earnings Trend: VNO.PRM's earnings have grown significantly by 49.6% per year over the past 5 years.

Accelerating Growth: VNO.PRM's earnings growth over the past year (706.3%) exceeds its 5-year average (49.6% per year).

Earnings vs Industry: VNO.PRM earnings growth over the past year (706.3%) exceeded the REITs industry 5%.


Return on Equity

High ROE: VNO.PRM's Return on Equity (40.7%) is considered outstanding.


Next Steps

Financial Health

How is Vornado Realty Trust's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: VNO.PRM has a high level of physical assets or inventory.

Debt Coverage by Assets: VNO.PRM's debt is not covered by short term assets (assets are 0.4x debt).


Financial Institutions Analysis

Asset Level: VNO.PRM's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if VNO.PRM has a sufficient allowance for bad loans.

Low Risk Liabilities: VNO.PRM reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if VNO.PRM has an acceptable proportion of non-loan assets held.

Low Risk Deposits: VNO.PRM has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if VNO.PRM has an appropriate level of bad loans.


Next Steps

Dividend

What is Vornado Realty Trust's current dividend yield, its reliability and sustainability?

4.85%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: VNO.PRM's dividend (4.59%) is higher than the bottom 25% of dividend payers in the US market (1.53%).

High Dividend: VNO.PRM's dividend (4.59%) is in the top 25% of dividend payers in the US market (3.96%)


Stability and Growth of Payments

Stable Dividend: VNO.PRM's dividend payments have been volatile in the past 10 years.

Growing Dividend: VNO.PRM's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (55.2%), VNO.PRM's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: VNO.PRM's dividends in 3 years are forecast to be thoroughly covered by earnings (0.3% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

6.8yrs

Average management tenure


CEO

Steve Roth (77yo)

6.8yrs

Tenure

US$11,599,270

Compensation

Mr. Steven Roth, also known as Steve, has been the Chairman of the Board and Chief Executive Officer at Vornado Realty Trust General Partner of Vornado Realty L.P. since May 1989 and April 15, 2013 respect ...


CEO Compensation Analysis

Compensation vs Market: Steve's total compensation ($USD11.60M) is about average for companies of similar size in the US market ($USD10.78M).

Compensation vs Earnings: Steve's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Steven Roth
Chairman of the Board & CEO6.8yrsUS$11.60m2% $234.6m
Michael Franco
President0.8yrsUS$5.35m0.10% $12.2m
Joseph Macnow
Executive VP3yrsUS$4.46m0.055% $6.4m
David Greenbaum
Vice Chairman22.8yrsUS$5.97m0.17% $20.4m
Matthew Iocco
Executive VP & Chief Accounting Officer7.8yrsno datano data
Robert Entin
Chief Information Officer & Executive VP14.4yrsno datano data
Catherine Creswell
Director of Investor Relations0yrsno datano data
Craig Stern
Executive Vice President of Tax & Compliance3.5yrsno datano data
Alan Reagan
Vice President of Development0yrsno datano data
Lisa Vogel
Executive Vice President of Marketing0yrsno datano data

6.8yrs

Average Tenure

67yo

Average Age

Experienced Management: VNO.PRM's management team is seasoned and experienced (6.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Steven Roth
Chairman of the Board & CEO6.8yrsUS$11.60m2% $234.6m
William Helman
Independent Trustee1.1yrsno data0.0026% $307.8k
David Mandelbaum
Independent Trustee41.1yrsUS$228.77k0.28% $33.2m
Russell Wight
Independent Trustee41.1yrsUS$228.77k0.23% $26.8m
Michael Fascitelli
23.2yrsUS$223.77k0.98% $114.7m
Richard West
Independent Trustee38.1yrsUS$278.77k0.014% $1.7m
Mandakini Puri
Independent Trustee3.2yrsUS$248.77kno data
Candace Beinecke
Lead Trustee3.9yrsUS$328.77k0.0036% $422.9k
Daniel Tisch
Independent Trustee8.1yrsUS$253.77k0.029% $3.4m

23.2yrs

Average Tenure

72yo

Average Age

Experienced Board: VNO.PRM's board of directors are seasoned and experienced ( 23.2 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Vornado Realty Trust's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Vornado Realty Trust
  • Ticker: VNO.PRM
  • Exchange: NYSE
  • Founded:
  • Industry: Office REITs
  • Sector: Real Estate
  • Implied Market Cap: US$11.746b
  • Market Cap: US$10.395b
  • Shares outstanding: 204.28m
  • Website: https://www.vno.com

Number of Employees


Location

  • Vornado Realty Trust
  • 888 Seventh Avenue
  • New York
  • New York
  • 10019
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
VNONYSE (New York Stock Exchange)YesCommon SharesUSUSDJan 1968
VO7DB (Deutsche Boerse AG)YesCommon SharesDEEURJan 1968
0LR2LSE (London Stock Exchange)YesCommon SharesGBUSDJan 1968
VNO.PRLNYSE (New York Stock Exchange)PFD SER L 5.40%USUSDJan 2013
VNOR.POTCPK (Pink Sheets LLC)PFD CONV SER AUSUSDOct 2013
VNO.PRMNYSE (New York Stock Exchange)5.25% CUM PFD MUSUSDDec 2017
V1NO34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH 1 REPR 1 COMBRBRLJan 2020

Biography

Vornado’s portfolio is concentrated in the nation’s key market — New York City — along with the premier asset in both Chicago and San Francisco. Vornado is also the real estate industry leader in sustainability policy. The company owns and manages over 23 million square feet of LEED certified buildings and received the Energy Star Partner of the Year Award, Sustained Excellence 2019. In 2012, Vornado commemorated 50 years on the NYSE. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/28 02:49
End of Day Share Price2020/02/27 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.