Vornado Realty Trust VNO reported first-quarter 2018 adjusted funds from operations (FFO) per share with assumed conversions of 91 cents, beating the Zacks Consensus Estimate of 89 cents. Further, the figure surpassed the prior-year quarter tally of 84 cents.
Total revenues came in at $536.4 million in the reported quarter, surpassing the Zacks Consensus Estimate of $527.6 million. Moreover, total revenues increased 5.6% year over year.
Results reflected growth in occupancy and same-store net operating income (NOI) in the New York portfolio. Behind the Headline Numbers
In the New York portfolio, 424,000 square feet of office space and 77,000 square feet of retail space were leased in the reported quarter. Also, 119,000 square feet and 89,000 square feet of space in theMart and 555 California Street, respectively, were leased.
At the end of the reported quarter, occupancy in the New York portfolio was 96.9%, down 30 basis points (bps) sequentially while improving 30 bps year over year. Occupancy in theMART was 99.1%, up 50 bps sequentially and 20 bps year over year. Further, occupancy in 555 California Street was 97.8%, rising 360 bps sequentially and 470 bps year over year.
During the first quarter, same-store net operating income (NOI) at share increased 4% year over year for the New York portfolio. The same for theMART and 555 California Street grew 3.4% and 12.3%, respectively, year over year.
As of Mar 31, 2018, Vornado had nearly $1.3 billion of cash and cash equivalents, down from $1.8 billion as of the prior-year end. Our Viewpoint
Vornado's premium assets in high-rent, high barrier-to-entry markets and a diverse tenant base have the capability to drive long-term growth. Moreover, as part of portfolio-repositioning efforts, the company has been aggressively disposing of its assets. Recently, it announced a "handshake" deal with Kushner Companies to sell its stake in the office tower, situated at 666 Fifth Avenue. However, dilutive impact on earnings from divestitures of assets cannot be bypassed in the near term. Also, intense competition and hike in interest rates remain concerns.
Currently, Vornado carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here
Vornado Realty Trust Price, Consensus and EPS Surprise
Vornado Realty Trust Price, Consensus and EPS Surprise | Vornado Realty Trust Quote
We now look forward to the earnings releases of Essex Property Trust, Inc. ESS , Mid-America Apartment Communities, Inc. MAA and Lamar Advertising Company LAMR , all of which are scheduled to report their numbers on May 2.
Note: Anything related to earnings presented in this write-up represents funds from operations (FFO) - a widely used metric to gauge the performance of REITs.
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Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Lamar Advertising Company (LAMR): Free Stock Analysis Report Mid-America Apartment Communities, Inc. (MAA): Free Stock Analysis Report Essex Property Trust, Inc. (ESS): Free Stock Analysis Report Vornado Realty Trust (VNO): Free Stock Analysis Report To read this article on Zacks.com click here.