Vornado Realty Trust reported its third‑quarter 2025 results, showing a net income of $11.6 million, or $0.06 per diluted share, and funds from operations (FFO) of $117.4 million, or $0.58 per diluted share. Adjusted FFO, excluding non‑recurring items, was $114.5 million, or $0.57 per diluted share.
The quarter’s performance was driven by several one‑time gains. A $803.2 million gain was recorded from the 770 Broadway master lease with New York University, a $76.2 million gain came from the sale of a portion of the 666 Fifth Avenue retail joint venture to UNIQLO, and a $17.2 million reversal of previously accrued PENN 1 ground‑rent expense was recognized.
Vornado completed the acquisition of 623 Fifth Avenue for $218 million, financing part of the purchase with a $145 million loan under its revolving credit facility. The proceeds from the 770 Broadway lease and the UNIQLO sale were used to repay $450 million of senior unsecured notes and to partially redeem preferred equity.
Liquidity at the end of the quarter was $1.01 billion in cash and cash equivalents. Total debt declined to $4.92 billion in mortgages payable and $746.9 million in senior unsecured notes, a reduction of more than $900 million compared with the end of 2024.
Revenue for the quarter was $453.7 million, exceeding the consensus estimate of $443.3 million. Revenue growth was supported by strong demand in the office and retail portfolios, while same‑store NOI for THE MART declined 10.4 % year‑over‑year.
Management indicated that comparable FFO for 2025 is expected to remain flat year‑over‑year. The company also projected significant earnings growth in 2027 as the lease‑up of its PENN District redevelopment reaches full impact.
The results reflect a combination of robust core operations and strategic asset transactions that have strengthened Vornado’s balance sheet and positioned the company for future growth in high‑quality Manhattan properties.
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