Vornado Realty Trust Plunges 4.93% on Weak Q4 Guidance, Office Sector Woes

Vornado Realty Trust’s stock fell to its lowest level since April 2025 on Nov. 18, with an intraday decline of 4.93%, extending a four-day losing streak that has erased 8.87% of its value. The decline reflects investor concerns over the real estate investment trust’s near-term earnings trajectory and broader challenges in the office sector.

The REIT reported stronger-than-expected Q3 2025 results, including $453.70 million in revenue and adjusted funds from operations of $0.57 per share, but its Q4 2025 guidance signaled a significant drop in earnings and revenue. Projected quarterly revenue of $437.14 million, down from $457.79 million a year earlier, underscores weak office fundamentals. Meanwhile, the company’s strategy to divest non-core assets in Chicago and San Francisco, while retaining its New York-centric portfolio, has raised questions about long-term growth diversification. Vornado’s 2.09% dividend yield, though appealing to income investors, faces sustainability risks if cash flows weaken further.

Market sentiment remains fragile amid broader macroeconomic pressures, including hybrid work trends that have dampened demand for office space. While Vornado’s Manhattan portfolio—85% of its assets—positions it to benefit from urban revitalization, the REIT’s reliance on a single market heightens regional risk. Analysts are closely watching its Q4 2025 earnings report, scheduled for Feb. 2026, for clarity on its ability to navigate these challenges. For now, the stock’s volatility highlights the tension between short-term earnings headwinds and long-term strategic positioning in prime real estate markets.