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Vornado Realty's (VNO) Q2 FFO & Revenues Miss Estimates

Vornado Realty Trust VNO reported second-quarter 2020 funds from operations (FFO) plus assumed conversions as adjusted of 55 cents per share, missing the Zacks Consensus Estimate of 74 cents. The reported figure also plunged 39.6% year over year.

Total same-store net operating income (NOI) in the New York portfolio as well as at theMART impacted the company’s quarterly results.

Total revenues were $343 million in the reported quarter, missing the Zacks Consensus Estimate of $365.2 million. Moreover, the revenue figure compares unfavorably with the year-ago number of $463.1 million.

During the reported quarter, the company collected 88% of rent due. This comprised collections of 93% from its office tenants and 72% from retail tenants.

Behind the Headline Numbers

In the New York portfolio, 615,000 square feet of office space (588,000 square feet of space at share) and 38,000 square feet of retail space (36,000 square feet of space at share) were leased during the June-end quarter. Also, 273,000 square feet of area was leased at theMart and 11,000 square feet of space was leased at 555 California Street (8,000 square feet at share).

At the end of the June-end quarter, occupancy in the New York portfolio was 95.2%, which shrunk 150 basis points (bps) sequentially and 130 bps year over year. Occupancy in theMART was 91.4%, down 50 bps sequentially and 340 bps year over year. Furthermore, occupancy in 555 California Street was 99%, down 80 bps sequentially and 50 bps year over year.

During the reported quarter, total same-store NOI decreased 24.5% year over year. Same-store NOI in the company’s 555 California Street declined 5%. The same at theMART and New York portfolio declined 42.5% and 23.4%, respectively.

During the April-June period, Vornado Realty closed the sale of four condominium units at 220 CPS for net proceeds amounting to $157 million. This resulted in a financial statement net gain of $55.7 million.

As of Jun 30, 2020, Vornado Realty had $1.77 million of cash and cash equivalents, up from the $1.52 million reported as of Dec 31, 2019.

Vornado Realty currently 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 price-consensus-eps-surprise-chart | Vornado Realty Trust Quote

Other REIT Performances

SL Green Realty Corp. SLG reported second-quarter 2020 FFO per share of $1.70, surpassing the Zacks Consensus Estimate of $1.55. The figure, however, compared unfavorably with the year-ago quarter’s $1.82.

CBRE Group Inc. CBRE reported second-quarter adjusted earnings per share of 35 cents, beating the Zacks Consensus Estimate of 30 cents. However, the figure plummeted 57.1% year over year.

Duke Realty Corporation’s DRE second-quarter 2020 core FFO per share of 38 cents surpassed the Zacks Consensus Estimate of 37 cents. The figure also increased from the year-ago tally of 36 cents.

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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