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Vornado’s (VNO) FFO and Revenue Q2 . exceed the estimates

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Vornado Realty TrustK VNO’s second-quarter 2022 Fund from Operations (FFO) Plus assumed conversion as adjusted per share of 83 cents, topping the Jacques consensus estimate of 79 cents.

Vornado’s results demonstrate better than anticipated top-line growth. Same-store net operating income (NOI) improved across the portfolio.

Total revenue for the reported quarter was $453.5 million, exceeding the Zacks consensus estimate of $433.3 million.

In addition, on a year-over-year basis, both FFO per share and revenue increased by 20.3% and 19.7%, respectively.

behind the spotlight

In the reported quarter, total same-store NOI (on share) improved 7.1% year over year. While the metric at Mart grew 8.3%, the metric for the New York portfolio grew 7.1% year over year. Same-store NOI (on the stock) of Vornado’s 555 California Street climbed 6.1%.

However, operating expenses increased 16.4% year over year to $222.3 million.

During the quarter, in the New York office portfolio, 301,000 square feet of office space (231,000 square feet at stock) was leased for an initial rent of $85.27 per square foot and a weighted average lease term of 11.5 years. The tenant improvement and leasing commission was $10.40 per square foot per year, or 12.2% of the initial rent.

In the New York retail portfolio, 8,000 square feet were leased (all on stock) at an initial rent of $626.76 per square foot and a weighted average lease term of 12.7 years. The tenant improvement and leasing commission was $66.28 per square foot per year, or 10.6% of the initial rent.

Additionally, 59,000 square feet of space (all on stock) in the mart was leased for an initial rent of $56.33 per square foot and a weighted average lease term of 4.7 years. The tenant improvement and leasing commission was $4.23 per square foot per year, or 7.5% of the initial rent.

On June 17, 2022, Vornado closed the sale of the Center Building for $172.75 million. Net income of $58.95 million came from the sale of an eight-story 498,000 square foot office building located at 33 00 North Boulevard in Long Island City, NY.

Vornado ended the quarter with occupancy in the New York portfolio at 90.8%, up 80 basis points (bps) year over year. Occupancy at Mart declined 50 bps to 88.6% from the same period last year, while occupancy at 555 California Street fell 360 bps to 94.2%.

balance sheet

Vornado exited the second quarter of 2022 with cash and cash equivalents of $988.4 million, up from $973.8 billion as of March 31, 2022.

In June 2022, VNO completed the refinancing of 100 West 33rd Street, a 1.1 million square foot building, and 770 Broadway, a 1.2 million square foot Class A Manhattan office building for $480 million and $700 million, respectively.

In the same month, Vornado modified and expanded one of its two revolving credit facilities. It extended the maturity of its $800 million unsecured term loan from February 2024 to December 2027.

Vornado currently holds the Jacques rank #3 (hold). you can see View the full list of today’s Jax #1 ranked (strong buy) stocks here,

Vornado Realty Trust Prices, Consensus and EPS Surprise

Vornado Realty Trust Prices, Consensus and EPS Surprise

Vornado Realty Trust Price-consensus-eps-surprise-chart | Vornado Realty Trust Quotes

Performance of other REITs

Kimco Realty Corp.KIM’s second-quarter 2022 FFO per diluted share came in at 40 cents, surpassing the Jacques consensus estimate of 38 cents. That figure rose 17.6% from 34 cents in the year-ago quarter.

The results reflect year-over-year growth in the top line. An increase in occupancy levels and rental rate growth supported KIM’s performance. It raised the 2022 FFO outlook.

Boston Properties Inc.BXP’s second-quarter 2022 FFO per share of $1.94 beat the Jacques consensus estimate of $1.85. That figure also compares favorably with the year-ago quarter’s $1.72.

BXP’s quarterly results reflect growth in the bottom line. In addition, it experienced strong leasing activity during the quarter.

Site Center Corp. SITC reported operating FFO per share of 31 cents in the second quarter 2022, beating the Jacques consensus estimate of 28 cents. This figure was in line with the prior-year quarter’s FFO per share.

SITC’s results were aided by strong top-line growth and improvement in annualized base fares.

Note: Anything related to income presented in this write-up represents funds from operations (FFO) — a widely used metric to measure REITs’ performance.

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