Vornado (VNO) Down 16.7% Since Last Earnings Report: Can It Rebound?

It has been about a month since the last earnings report for Vornado (VNO). Shares have lost about 16.7% in that time frame, underperforming the S&P 500.

But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is Vornado due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.

Vornado Realty's Q4 FFO Misses Estimates, Revenues Decrease Y/Y

Vornado’s fourth-quarter 2025 FFO plus assumed conversions, on an adjusted basis, were 55 cents per share, which missed the Zacks Consensus Estimate of 57 cents. Moreover, the figure decreased 9.8% year over year.

Results displayed a year-over-year decline in same-store NOI and occupancy for the 555 California Street portfolio. The company witnessed decent leasing activities in the New York and THE MART portfolios.

Total revenues were $453.7 million in the reported quarter, which surpassed the Zacks Consensus Estimate of $434.8 million. On a year-over-year basis, revenues decreased marginally.

In January 2026, VNO acquired 3 East 54th Street, a demolition-ready asset situated on 18,400 square feet of land, for $141 million.

Quarter in Detail

In the reported quarter, total same-store NOI (at share) came in at $260.6 million compared with $248.1 million in the prior-year quarter. The metrics for the New York and THE MART portfolios increased 2.2% and 141.1%, respectively, from the prior-year period. However, the same decreased 7.1% for 555 California Street.

During the quarter, in the New York office portfolio, 960,000 square feet of office space (869,000 square feet at share) was leased for an initial rent of $95.36 per square foot and a weighted average lease term of 9.9 years. The tenant improvements and leasing commissions were $14.74 per square foot per annum or 15.5% of the initial rent.

In the New York retail portfolio, 21,000 square feet were leased (14,000 square feet at share) at an initial rent of $273.56 per square foot and a weighted average lease term of 8.2 years. The tenant improvements and leasing commissions were $11.69 per square foot per annum or 4.3% of the initial rent.

At THE MART, 26,000 square feet of space (all at share) was leased for an initial rent of $62.73 per square foot and a weighted average lease term of 4.4 years. The tenant improvements and leasing commissions were $3.25 per square foot per annum or 5.2% of the initial rent.

Vornado ended the quarter with occupancy in the total New York portfolio at 90.0%, up 240 basis points (bps) year over year. Occupancy in THE MART was 81.5%, up 140 bps year over year. Occupancy in 555 California Street was 88.9%, down 310 bps year over year.

Balance Sheet

Vornado exited the fourth quarter of 2025 with cash and cash equivalents of $840.9 million, down from $1.01 billion as of Sept. 30, 2025.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed a downward trend in fresh estimates.

VGM Scores

Currently, Vornado has a subpar Growth Score of D, a score with the same score on the momentum front. However, the stock was allocated a score of A on the value side, putting it in the top quintile for value investors.

Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Interestingly, Vornado has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Performance of an Industry Player

Vornado is part of the Zacks REIT and Equity Trust - Other industry. Over the past month, Digital Realty Trust (DLR), a stock from the same industry, has gained 4.8%. The company reported its results for the quarter ended December 2025 more than a month ago.

Digital Realty Trust reported revenues of $1.63 billion in the last reported quarter, representing a year-over-year change of +13.8%. EPS of $0.24 for the same period compares with $1.73 a year ago.

Digital Realty Trust is expected to post earnings of $1.95 per share for the current quarter, representing a year-over-year change of +10.2%. Over the last 30 days, the Zacks Consensus Estimate has changed +1.5%.

Digital Realty Trust has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of D.

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