Vornado Realty Trust (NYSE: VNO)

Sector: Real Estate Industry: REIT - Office CIK: 0000899689
Market Cap 5.56 Bn
P/B 0.93
P/E 6.60
P/S 3.07
ROIC (Qtr) 1.42
Div Yield % 0.00
Rev 1y % (Qtr) -0.89
Total Debt (Qtr) 7.89 Bn
Debt/Equity (Qtr) 1.32
Add ratio to table...

About

Vornado Realty Trust (VNO) is a prominent player in the real estate industry, specializing in the ownership, management, and development of commercial and residential properties. Headquartered in New York City, the company's operations span across various regions, with a significant focus on the Manhattan market. Vornado's main business activities involve generating revenue through rental income from its diverse portfolio of properties. These properties include office spaces, retail spaces, and residential units, with the majority of the company's...

Read more

Investment thesis

Bull case

  • Operating cash flow of 1.26B provides exceptional 39.02x coverage of minority interest expenses 32.25M, showing strong core operations.
  • Operating cash flow of 1.26B provides strong 49.39x coverage of stock compensation 25.48M, indicating sustainable incentive practices.
  • Strong operating cash flow of 1.26B provides 8.06x coverage of SG&A expenses 156.12M, showing efficient operational cost management.
  • Cash position of 977.55M provides exceptional 30.31x coverage of minority interest expenses 32.25M, indicating strong liquidity.
  • Operating cash flow of 1.26B provides strong 2.86x coverage of operating expenses 440.38M, showing operational efficiency.

Bear case

  • Operating cash flow of 1.26B provides thin coverage of dividend payments of (141.28M) with a -8.91 ratio, suggesting potential dividend sustainability issues if operational performance deteriorates.
  • Cash reserves of 977.55M provide limited coverage of acquisition spending of 764.34M, which is 1.28x, suggesting aggressive expansion might strain liquidity if market conditions deteriorate.
  • Operating earnings of 1.27B show weak coverage of depreciation charges of 481.46M, with a 2.64 ratio indicating high capital intensity and potential reinvestment needs.
  • Free cash flow of 644.55M represents just -0.60x of debt issuance (1.07B), suggesting concerning reliance on leverage rather than internal cash generation for growth.
  • Operating cash flow of 1.26B is outpaced by equity issuance of (50.99M) (-24.68 ratio), indicating concerning reliance on equity markets for funding operations.

Segments Breakdown of Revenue (2025)

Legal Entity Breakdown of Revenue (2025)

Peer comparison

Companies in the REIT - Office
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 BXP BXP, Inc. 9.52 Bn 10.44 3.12 17.35 Bn
2 ARE Alexandria Real Estate Equities, Inc. 9.27 Bn -6.45 3.06 12.40 Bn
3 VNO Vornado Realty Trust 5.56 Bn 6.60 3.07 7.89 Bn
4 KRC Kilroy Realty Corp 3.77 Bn 13.65 3.39 4.59 Bn
5 CDP Copt Defense Properties 3.33 Bn 46.00 5.75 2.49 Bn
6 SLG Sl Green Realty Corp 2.75 Bn -24.56 2.74 5.97 Bn
7 HIW Highwoods Properties, Inc. 2.49 Bn 15.83 3.09 3.55 Bn
8 CUZ Cousins Properties Inc 2.44 Bn 24.76 4.97 3.34 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.79 0.66
EV to Cash from Ops. EV/CFO 9.78 35.35
EV to Debt EV to Debt 1.56 1.60
EV to EBIT EV/EBIT 9.67 -177.85
EV to EBITDA EV/EBITDA 15.86 15.22
EV to Free Cash Flow [EV/FCF] EV/FCF 19.08 -21.54
EV to Market Cap EV to Market Cap 2.21 14.69
EV to Revenue EV/Rev 6.79 6.06
Price to Book Value [P/B] P/B 0.93 0.76
Price to Earnings [P/E] P/E 6.60 3.15
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 4.14 -2.81
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 86.83
Dividend per Basic Share Div per Share (Qtr) 0.00 1.13
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 -31.14
Interest Coverage Int. cover (Qtr) 3.60 -0.15
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -42.09 -13.82
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 2.94 8.92
Dividend Growth (1y) % Div 1y % (Qtr) 0.00 -13.06
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 243.09 -81.02
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 6.01 -59.28
EBIT Growth (1y) % EBIT 1y % (Qtr) 163.21 -85.68
EBT Growth (1y) % EBT 1y % (Qtr) 886.37 -24.55
EPS Growth (1y) % EPS 1y % (Qtr) 10,900.00 393.08
FCF Growth (1y) % FCF 1y % (Qtr) 509.71 148.67
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 3.56 -2.47
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.12 0.13
Cash Payout Ratio Cash Payout (Qtr) 0.08 0.24
Cash Ratio Cash Ratio 0.00 0.00
Current Ratio Current Ratio 0.00 0.00
Debt to Equity Ratio Debt/Equity (Qtr) 1.32 1.46
Interest Cover Ratio Int Coverage (Qtr) 3.60 -0.15
Times Interest Earned Times Interest Earned (Qtr) 3.60 -0.15
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 96.90 29.81
EBIT Margin % EBIT Margin % (Qtr) 70.28 -4.47
EBT Margin % EBT Margin % (Qtr) 50.73 -25.12
Gross Margin % Gross Margin % (Qtr) 49.20 60.66
Net Profit Margin % Net Margin % (Qtr) 46.60 -26.43