Vornado Realty Trust (NYSE:VNO) reported today:
Quarter Ended March 31, 2026 Financial Results
NET LOSS attributable to common shareholders for the quarter ended March 31, 2026 was $22,842,000, or $0.12 per diluted share, compared to net income attributable to common shareholders of $86,842,000, or $0.43 per diluted share, for the prior year's quarter.
FUNDS FROM OPERATIONS ("FFO") attributable to common shareholders plus assumed conversions (non-GAAP) for the quarter ended March 31, 2026 was $96,263,000, or $0.49 per diluted share, compared to $135,039,000, or $0.67 per diluted share, for the prior year's quarter. Adjusting for the items that impact period-to-period comparability listed in the table below, FFO attributable to common shareholders plus assumed conversions, as adjusted (non-GAAP) for the quarter ended March 31, 2026 was $103,109,000, or $0.52 per diluted share, and $126,245,000, or $0.63 per diluted share, for the prior year's quarter.
The following table reconciles FFO attributable to common shareholders plus assumed conversions (non-GAAP) to FFO attributable to common shareholders plus assumed conversions, as adjusted (non-GAAP):
(Amounts in thousands, except per share amounts)
For the Three Months EndedMarch 31,
2026
2025
FFO attributable to common shareholders plus assumed conversions (non-GAAP)(1)
$
96,263
$
135,039
Per diluted share (non-GAAP)
$
0.49
$
0.67
Certain expense (income) items that impact FFO attributable to common shareholders plus assumed conversions:
Deferred tax liability on our investment in the Farley Building (held through a taxable REIT subsidiary)
$
2,984
$
3,205
After-tax net gain on sale of 220 Central Park South ("220 CPS") condominium units and ancillary amenities
—
(11,028
)
Gain on sale of Canal Street residential condominium units
—
(1,975
)
Other
4,453
240
7,437
(9,558
)
Noncontrolling interests' share of above adjustments on a dilutive basis
(591
)
764
Total of certain expense (income) items that impact FFO attributable to common shareholders plus assumed conversions, net
$
6,846
$
(8,794
)
Per diluted share (non-GAAP)
$
0.03
$
(0.04
)
FFO attributable to common shareholders plus assumed conversions, as adjusted (non-GAAP)
$
103,109
$
126,245
Per diluted share (non-GAAP)
$
0.52
$
0.63
________________________________
(1)
See page 10 for a reconciliation of net (loss) income attributable to common shareholders to FFO attributable to common shareholders plus assumed conversions (non-GAAP) for the three months ended March 31, 2026 and 2025.
FFO, as Adjusted Bridge - Q1 2026 vs. Q1 2025
The following table bridges our FFO attributable to common shareholders plus assumed conversions, as adjusted (non-GAAP) for the three months ended March 31, 2025 to FFO attributable to common shareholders plus assumed conversions, as adjusted (non-GAAP) for the three months ended March 31, 2026:
(Amounts in millions, except per share amounts)
FFO, as Adjusted
Amount
Per Share
FFO attributable to common shareholders plus assumed conversions, as adjusted (non-GAAP) for the three months ended March 31, 2025
$
126.2
$
0.63
(Decrease) / increase in FFO, as adjusted due to:
Reversal in Q1 2025 of PENN 1 ground rent previously accrued
(17.2
)
Interest expense, net of interest income
(15.9
)
Impact of NYU master lease at 770 Broadway
7.6
Variable businesses
3.4
Lease expirations, net of rent commencements
(2.1
)
Other, net
0.1
(24.1
)
Noncontrolling interests' share of above items and impact of assumed conversions of convertible securities
1.0
Net decrease
(23.1
)
(0.11
)
FFO attributable to common shareholders plus assumed conversions, as adjusted (non-GAAP) for the three months ended March 31, 2026
$
103.1
$
0.52
See page 10 for a reconciliation of net (loss) income attributable to common shareholders to FFO attributable to common shareholders plus assumed conversions (non-GAAP) for the three months ended March 31, 2026 and 2025. Reconciliations of FFO attributable to common shareholders plus assumed conversions to FFO attributable to common shareholders plus assumed conversions, as adjusted are provided on the previous page.
Share Repurchase Program
During the three months ended March 31, 2026, we repurchased 2,745,713 common shares for $79,844,000 at an average price per share of $29.08.
On April 29, 2026, Vornado announced that its Board of Trustees has authorized the repurchase of up to $300,000,000 of its outstanding common shares under a new share repurchase program.
Under Vornado's existing $200,000,000 share repurchase program that was announced in April 2023, Vornado has repurchased 6,929,439 of its common shares at an average price of $25.80 per share and has $21,191,000 remaining capacity under that prior program.
Acquisitions
Park Avenue Plaza
On April 28, 2026, we agreed to purchase a 49.0% interest in Park Avenue Plaza at a gross asset valuation of $1.1 billion ($950 per square foot). Park Avenue Plaza is a 45-story, 1,200,000 rentable square foot building located at 55 East 52nd Street. The Class A office building, co-owned by Fisher Brothers, has protected Park Avenue views and occupies the full through-block between East 52nd and East 53rd Street.
We will acquire our interest subject to our share of the $575,000,000 loan encumbering the property that bears interest at a fixed rate of 2.99% and matures in November 2031.
Fisher Brothers will retain its current 51.0% ownership interest and will continue to manage and lease the property. Vornado and Fisher Brothers will have joint control over major decisions. We expect to close the acquisition in the second quarter of 2026.
3 East 54th Street
On January 7, 2026, we acquired 3 East 54th Street, a demolition-ready asset situated on 18,400 square feet of land, for $141,000,000. Previously, in July 2025, we purchased the $35,000,000 A-Note secured by the property at par plus accrued interest, and in August 2024, we purchased the $50,000,000 B-Note secured by the property. The A-Note and B-Note were in default. The $107,000,000 loan balance, including default interest and advances, was credited towards the purchase price.
3 East 54th Street is located between Fifth Avenue and Madison Avenue on 54th Street, adjacent to the St. Regis Hotel and our Upper Fifth Avenue retail properties. The land is zoned for approximately 232,500 buildable square feet as-of-right, and we intend to promptly demolish the existing buildings on the site.
Dispositions
Alexander's, Inc. ("Alexander's")
On March 6, 2026, Alexander's, in which we own a 32.4% interest, entered into an agreement to sell its Rego Park I property for $235,500,000. Alexander's expects to close the sale by the third quarter of 2026. Upon completion of the sale, we will recognize our approximate $44,000,000 share of the net gain. The sale is subject to customary closing conditions.
Financing Activity
350 Park Avenue
On March 10, 2026, an affiliate of Kenneth C. Griffin ("KG") provided a $400,000,000 mortgage loan secured by 350 Park Avenue, the proceeds of which were used to defease the existing $400,000,000 mortgage loan in connection with the site's development. The new interest-only loan bears interest at a fixed rate of 4.0% and matures in January 2027. Concurrently, and in connection with the planned development, Citadel Enterprise Americas LLC vacated the building and assigned its existing master lease to an affiliate of KG as tenant, and the lease was amended to provide for net rent of $16,000,000 per annum, equal to the interest payments under the new mortgage loan.
One Park Avenue
On February 9, 2026, we completed a $525,000,000 refinancing of One Park Avenue, a 945,000 square foot Manhattan office building. The five-year interest-only loan matures in February 2031 and bears interest at a rate of SOFR plus 1.78%. The loan replaced the previous $525,000,000 loan that bore interest at SOFR plus 1.22% and was scheduled to mature in March 2026.
61 Ninth Avenue
On February 2, 2026, a joint venture, in which we have a 45.1% interest, entered into a seven-month extension with the lenders on the $167,500,000 mortgage loan encumbering 61 Ninth Avenue and simultaneously paid down the principal balance by $12,500,000 to $155,000,000. The loan was previously scheduled to mature in January 2026. The non-recourse interest-only loan bears interest at a rate of SOFR plus 2.45% and matures in August 2026, with a three-month extension option subject to certain conditions.
Financing Activity - continued
825 Seventh Avenue Office Condominium
On January 26, 2026, a joint venture, in which we have a 50.0% interest, entered into a nine-month extension with the lenders on the $54,000,000 mortgage loan encumbering the office condominium of 825 Seventh Avenue and simultaneously paid down the principal balance by $6,000,000 to $48,000,000. The loan was previously scheduled to mature in January 2026. The non-recourse interest-only loan bears interest at a rate of SOFR plus 2.75% and matures in October 2026, with a fifteen-month extension option subject to loan-to-value and debt yield requirements.
7 West 34th Street
On January 23, 2026, a joint venture, in which we have a 53.0% interest, completed a $250,000,000 refinancing of 7 West 34th Street, a 477,000 square foot Manhattan office and retail building. The non-recourse, five-year interest-only mortgage loan matures in February 2031 and has a fixed rate of 5.79%. The joint venture paid down by $50,000,000 the prior $300,000,000 full-recourse loan that bore interest at 3.65% and was scheduled to mature in June 2026. The loan was paid down using property-level reserves and a $25,000,000 member loan from Vornado which accrues interest at 16.00% and receives priority on distributions.
Senior Unsecured Notes Due 2033
On January 14, 2026, we completed a public offering of $500,000,000 5.75% senior unsecured notes due February 1, 2033 ("2033 Notes"). Interest on the senior unsecured notes is payable semi-annually on February 1 and August 1, commencing August 1, 2026. The 2033 Notes were sold at 99.824% of their face amount to yield 5.78%. A portion of the $494,000,000 net proceeds from the 2033 Notes will be used to repay our $400,000,000 senior unsecured notes due June 2026 at maturity.
2031 Revolving Credit Facility
On January 7, 2026, we completed a $1.105 billion refinancing of one of our two revolving credit facilities. On February 4, 2026, the facility was upsized to $1.130 billion. The $1.130 billion amended facility currently bears interest at a rate of SOFR plus 1.05% and is scheduled to mature in February 2031 (as fully extended). The facility fee is 25 basis points. The facility replaced the previous $1.25 billion revolving credit facility which was scheduled to mature in December 2027.
2029 Revolving Credit Facility
On January 7, 2026, we upsized our $915,000,000 revolving credit facility that matures in April 2029 (as fully extended) to $1.0 billion. The credit facility currently bears interest at a rate of SOFR plus 1.16% and has a facility fee of 24 basis points.
Unsecured Term Loan
On January 7, 2026, we completed a refinancing of our unsecured term loan and upsized the loan amount to $850,000,000. The loan bears interest at SOFR plus 1.20% and matures in February 2031 (as fully extended). The loan replaced the previous $800,000,000 term loan which bore interest at SOFR plus 1.25% and was scheduled to mature in December 2027.
888 Seventh Avenue
On December 10, 2025, the $244,543,000 non-recourse mortgage loan on 888 Seventh Avenue matured and was not repaid, at which time the lenders declared an event of default. On March 9, 2026, we entered into a forbearance agreement pursuant to which the lenders agreed to forbear from exercising their remedies and waived default interest through March 2027. During the forbearance period, regularly scheduled interest and required monthly amortization payments continue to accrue, but payment is deferred until the expiration or earlier termination of the forbearance period, at which time such amounts become due and payable.
Leasing Activity
The leasing activity and related statistics in the table below are based on leases signed during the period and are not intended to coincide with the commencement of rental revenue in accordance with accounting principles generally accepted in the United States of America ("GAAP"). Second generation relet space represents square footage that has not been vacant for more than nine months and tenant improvements and leasing commissions are based on our share of square feet leased during the period.
(Square feet in thousands)
New York
555 California Street
Office
Retail
THE MART
Three Months Ended March 31, 2026
Total square feet leased
311
25
19
96
Our share of square feet leased:
243
13
19
67
Initial rent(1)
$
102.50
$
546.51
$
70.20
$
151.94
Weighted average lease term (years)
8.7
12.4
3.3
9.5
Second generation relet space:
Square feet
121
1
15
58
GAAP basis:
Straight-line rent(2)
$
96.86
$
2,273.02
$
69.32
$
178.18
Prior straight-line rent
$
86.69
$
1,221.04
$
67.76
$
123.11
Percentage increase
11.7
%
86.2
%
2.3
%
44.7
%
Cash basis (non-GAAP):
Initial rent(1)
$
102.06
$
2,140.67
$
70.60
$
162.85
Prior escalated rent
$
93.04
$
1,574.92
$
71.81
$
134.95
Percentage increase (decrease)
9.7
%
35.9
%
(1.7)%
20.7
%
Tenant improvements and leasing commissions:
Per square foot
$
141.09
$
127.63
$
28.72
$
176.42
Per square foot per annum
$
16.22
$
10.29
$
8.70
$
18.57
Percentage of initial rent
15.8
%
1.9
%
12.4
%
12.2
%
_______________________________
(1)
Represents the cash basis weighted average starting rent per square foot, which is generally indicative of market rents. Most leases include free rent and periodic step-ups in rent which are not included in the initial cash basis rent per square foot but are included in the GAAP basis straight-line rent per square foot.
(2)
Represents the GAAP basis weighted average rent per square foot that is recognized over the term of the respective leases and includes the effect of free rent and periodic step-ups in rent.
Occupancy
(At Vornado's share)
New York
THE MART
555 California Street
Total
Office
Retail
Occupancy as of March 31, 2026
90.3
%
91.6
%
78.3
%
80.0
%
86.7
%
Same Store Net Operating Income ("NOI") (non-GAAP) At Share:
Total
New York
THE MART
555 California Street
Same store NOI at share % increase (decrease)(1):
Three months ended March 31, 2026 compared to March 31, 2025
6.1%
8.9
%
0.3
%
(21.5)%
Three months ended March 31, 2026 compared to December 31, 2025
0.7%
0.7
%
8.5
%
(6.6)%
Same store NOI at share - cash basis % (decrease) increase(1):
Three months ended March 31, 2026 compared to March 31, 2025
(2.9)%
1.3
%
(2
)
1.0
%
(51.2)%
(2
)
Three months ended March 31, 2026 compared to December 31, 2025
0.3%
(0.2)%
17.5
%
(14.6)%
____________________
(1)
See pages 12 through 15 for same store NOI at share and same store NOI at share - cash basis reconciliations.
(2)
Variance in same store NOI at share vs. NOI at share - cash basis is primarily due to GAAP rent commencing on new leases with free rent periods.
NOI At Share and NOI At Share - Cash Basis:
The elements of our New York and Other NOI at share and NOI at share - cash basis for the three months ended March 31, 2026 and 2025 and the three months ended December 31, 2025 are summarized below.
(Amounts in thousands)
For the Three Months Ended
March 31,
December 31, 2025
2026
2025
NOI at share:
New York:
Office (includes base retail)(1)(2)
$
174,943
$
193,550
(3)
$
173,843
Street Retail(1)
46,686
43,570
48,335
Residential
6,996
6,192
6,395
Alexander's
7,924
9,509
8,034
Total New York
236,549
252,821
236,607
Other:
THE MART
15,890
15,916
14,808
555 California Street
13,651
17,843
14,614
Other investments
6,033
6,710
8,231
Total Other
35,574
40,469
37,653
NOI at share
$
272,123
$
293,290
$
274,260
NOI at share - cash basis:
New York:
Office (includes base retail)(1)(2)
$
151,963
$
169,246
$
150,164
Street Retail(1)
41,239
41,689
44,839
Residential
6,571
5,848
5,969
Alexander's
8,756
10,538
8,928
Total New York
208,529
227,321
209,900
Other:
THE MART
17,625
17,517
15,177
555 California Street
8,859
18,137
10,379
Other investments
6,044
6,396
7,946
Total Other
32,528
42,050
33,502
NOI at share - cash basis
$
241,057
$
269,371
$
243,402
________________________________
(1)
During the first quarter of 2026, we reclassified retail assets located at the base of our office buildings from the retail subsegment to the office subsegment. The retail subsegment was renamed "Street Retail" and now comprises standalone retail properties and mixed-use assets with prominent retail components, including related signage, with a concentration on High Streets such as Fifth Avenue, Madison Avenue and Times Square. Prior period balances have been reclassified to conform to current period presentation. This change applies only to net operating income; all other operating metrics, including occupancy, leasing activity, and lease expirations continue to be presented based on space type.
(2)
Includes Building Maintenance Services NOI of $10,170, $6,936 and $7,904 for the three months ended March 31, 2026 and 2025 and December 31, 2025, respectively.
(3)
Includes a $17,240 reversal of previously accrued PENN 1 ground rent.
Active Development/Redevelopment Summary as of March 31, 2026:
(Amounts in thousands, except square feet)
(at Vornado's share)
Projected IncrementalCash Yield
Active Development Projects:
PropertyRentableSq. Ft.
Budget
Cash AmountExpended
Remaining Expenditures
Projected Leasing Stabilization Year
623 Fifth Avenue office condominium
