Vornado Realty Trust, Inc. VNO announced that it has completed a refinancing of $450 million for PENN 11, a Manhattan office building encompassing 1.2 million square feet of space located in THE PENN DISTRICT.
The five-year interest-only loan is set to mature in August 2030 and carries a fixed interest rate of 6.35%. Vornado paid off $50 million of its previous $500 million loan, which had an interest rate of SOFR plus 2.06% (swapped to a fixed rate of 6.28%) and was due to mature in October 2025.
VNO: In a Snapshot
This refinancing offers Vornado enhanced financial flexibility. The extended maturities of the assumed debt will help the company improve its maturity profile and enjoy greater liquidity for day-to-day operations.
VNO makes efforts to boost its cash flow and alleviate bottom-line pressure. Further, it focuses on achieving greater financial flexibility and strengthening its balance sheet position. As of March 31, 2025, the company had $2.3 billion of liquidity, consisting of $807 million of cash and cash equivalents and restricted cash, and $1.5 billion available under its $2.2 billion revolving credit facilities.
In the past three months, shares of this Zacks Rank #3 (Hold) company have gained 13.8% compared with the industry's growth of 3.2%.
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Stocks to Consider
Some better-ranked stocks from the broader REIT sector include Digital Realty Trust DLR and Cousins Properties CUZ, each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for DLR’s 2025 FFO per share has moved a cent northward to $7.04 over the past week.
The Zacks Consensus Estimate for CUZ’s 2025 FFO per share has moved a cent northward to $2.80 over the past two months.
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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This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
