Vornado Q2 net income rises to $743.8mln, FFO at $120.9mln.

• Vornado Realty Trust reported Q2 2025 net income of $743.8M, up from $35.3M YoY. • The increase is mainly due to a $803.2M gain from the 770 Broadway master lease with NYU. • FFO attributable to common shareholders was $120.9M, down from $148.9M YoY.

Vornado Realty Trust (NYSE: VNO) reported its second-quarter 2025 financial results, highlighting significant gains and changes in key metrics. The company reported a net income of $743.8 million for the quarter ended June 30, 2025, up from $35.3 million in the same period last year [1]. This substantial increase was primarily driven by a $803.2 million gain from the 770 Broadway master lease with New York University (NYU).

Funds from Operations (FFO) attributable to common shareholders, a key metric for real estate investment trusts (REITs), stood at $120.9 million for the quarter, down from $148.9 million year-over-year. Adjusted FFO was $113.3 million, reflecting the impact of certain income expense items that impact FFO [1].

The company also reported a six-month net income of $830.6 million, up from $26.2 million in the same period last year. This increase was primarily due to the NYU master lease gain, the $76.2 million net gain from the sale of a portion of the 666 Fifth Avenue condominium to UNIQLO, and the $17.2 million reversal of PENN 1 rent expense [1].

Vornado's adjusted FFO for the six months ended June 30, 2025, was $239.6 million, down from $221.6 million in the same period last year. The decrease in FFO was primarily due to changes in the tax assessed value of THE MART, interest income, asset sales, and other adjustments [1].

The company also announced the sale of several properties, including a portion of the 666 Fifth Avenue condominium to UNIQLO, and the 512 West 22nd Street office building. These sales contributed to the company's net income and FFO for the quarter [1].

In conclusion, Vornado Realty Trust's Q2 2025 financial results show strong performance, driven by significant gains from the NYU master lease and other property sales. However, the company's FFO decreased year-over-year, reflecting the impact of certain income expense items. Investors should closely monitor the company's ongoing litigation with the ground lessor of the PENN 1 land parcel and the potential impact on its financial results.

References:
[1] https://www.manilatimes.net/2025/08/05/tmt-newswire/globenewswire/vornado-announces-second-quarter-2025-financial-results/2162019