Vornado Realty Trust
) gained 2.38% since the company announced the acquisition of
land and air rights for 137,000 zoning square feet of space at
its development site - 220 Central Park South - in Manhattan on
Oct 15, 2013.
The $194 million buyout will facilitate Vornado to begin
construction of its planned 920-foot tall luxury residential
condominium tower, comprising 472,000 zoning square feet, at the
development site. Notably, with the deal, this real estate
investment trust (REIT) completed the assembly of its 220 Central
Park South development site.
The Manhattan housing market is experiencing huge demand and
consequently the sales and rent levels are also rising. Thus,
Vornado's decision to build a condominium at this time is
As a matter of fact, Vornado is currently focused on improving
its core business and enhancing its portfolio mix through
valuable portfolio restructuring initiatives like the
abovementioned one. In relation to this, this month, Vornado
accomplished the purchase of retail and office property on 655
Fifth Avenue Manhattan for $278 million.
Also, in the same month, the company's joint venture, in
collaboration with institutional investors advised by J.P. Morgan
Asset Management of
JP Morgan Chase & Co.
), acquired a Class A office tower - 650 Madison Avenue - for
$1.295 billion. Such accretive buyouts bode well for Vornado's
The company is scheduled to release its third-quarter 2013
results on Nov 4, 2013, after the market closes. The Zacks
Consensus Estimate for third-quarter 2013 funds from operations
(FFO) is currently pegged at $1.18, representing year-over-year
growth of 3.13%.
Vornado currently has a Zacks Rank #3 (Hold). Other
better-performing REITs include
Sotherly Hotels Inc.
Parkway Properties Inc.
). Both these stocks carry a Zacks Rank #1 (Strong Buy).
FFO, a widely accepted and reported measure of the
performance of REITs is derived by adding depreciation,
amortization and other non-cash expenses to net income.
JPMORGAN CHASE (JPM): Free Stock Analysis
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VORNADO RLTY TR (VNO): Free Stock Analysis
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