NYSE$VNO

Vornado Realty Trust · Q1 2023 earnings

Q1 2023 earnings · · Investor relations

Briefing

Vornado's financial performance declined in the first quarter of 2023 compared to the previous year.

Vornado Realty Trust reported a decrease in net income attributable to common shareholders for Q1 2023, with $5,168,000, or $0.03 per diluted share, compared to $26,478,000, or $0.14 per diluted share in the prior year's quarter. FFO attributable to common shareholders plus assumed conversions also decreased to $119,083,000, or $0.61 per diluted share, from $154,908,000, or $0.80 per diluted share in the same period last year.

  • Net income attributable to common shareholders decreased to $5,168,000, or $0.03 per diluted share.
  • Non-GAAP net income attributable to common shareholders was $2,373,000, or $0.01 per diluted share.
  • FFO attributable to common shareholders plus assumed conversions decreased to $119,083,000, or $0.61 per diluted share.
  • The company postponed dividends on its common shares until the end of 2023 and authorized a share repurchase program of up to $200,000,000.

Headline financials

Total Revenue

$446M

Previous: $442M+0.9%
EPS (adj)

$0.60

Previous: $0.79-24.1%
New York Office Occupancy

101.0%

Previous: 177809000.0%-100.0%
THE MART Occupancy

56.4%

Previous: 19914000.0%-100.0%
555 California Street Occupancy

157.0%

Previous: 16235000.0%-100.0%
Capital Expenditures

-$194M

Previous: -$241M+19.6%
Free Cash Flow

-$173M

Previous: -$199M+13.0%
Net Income

$20.7M

Previous: $42M-50.7%
Operating Income

$64.6M

Previous: $67.9M-4.8%
Gross Profit

$217M

Previous: $226M-3.7%
Cash & Equivalents

$891M

Previous: $974M-8.5%
Total Assets

$16.3B

Previous: $17.5B-7.0%
Stock-Based Comp

$11.7M

Previous: $13.2M-11.0%

Revenue & EPS history

Vornado · Revenue · Quarterly

$446M

Q1 2023+0.9%vs Q1 2022
Beat estimate in 11 of 15 quarters(73%)
ActualEstimate

Forward guidance

Vornado plans to use cash retained from dividends or asset sales to reduce debt and/or fund share repurchases.

Tailwinds

  • Vornado completed agreements with Citadel for 350 Park Avenue.
  • Citadel master leases 350 Park Avenue for ten years with an initial annual net rent of $36,000,000.
  • Vornado entered into a joint venture with Rudin to purchase 39 East 51st Street.
  • Board of Trustees has authorized the repurchase of up to $200,000,000 of its outstanding common shares under a newly established share repurchase program.
  • Alexander's anticipates the closing of the sale in the second quarter of 2023 and will recognize a financial statement gain of approximately $54,000,000.

Headwinds

  • Vornado will postpone dividends on its common shares until the end of 2023.
  • Increase in interest rates and inflation.
  • Continuing effect of the COVID-19 pandemic on our business.
  • Financial condition, results of operations, cash flows, operating performance and the effect that these factors have had and may continue to have on our tenants.
  • Global, national, regional and local economies and financial markets and the real estate market in general.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2023

Historical avgQ1 2023

-0.2%

Avg return

Earnings day

+0.7%

Avg return

5 days after

-0.1%

Avg return

30 days after

50%

36 / 72 earnings

Positive

+10.7%

Q3 2020

Best reaction

-7.7%

Q1 2024

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+2.2%+8.5%+17.8%
Q4 2025+2.7%-3.5%-16.0%
Q3 2025-4.8%-1.4%-6.0%
Q1 2025+3.5%+5.2%+5.8%
Q4 2024+0.8%-0.1%-16.5%
Q3 2024+3.7%+11.0%+6.2%
Q2 2024+7.8%+8.8%+18.2%
Q1 2024-7.7%-7.7%-8.2%
Q4 2023-6.6%-1.4%-1.7%
Q3 2023-1.7%+18.1%+21.7%
Q2 2023+1.7%+2.6%+8.2%
Q1 2023-7.2%-5.3%-9.7%
Q4 2022-0.3%+6.1%-16.3%
Q3 2022-2.6%-2.8%+6.3%
Q2 2022-3.4%-9.0%-13.7%
Q1 2022+0.0%-6.3%-12.6%
Q4 2021+5.5%+7.7%+9.6%
Q3 2021+0.9%+4.6%-8.1%
Q2 2021-2.3%-1.8%-1.7%
Q1 2021+3.7%+0.6%+8.2%
Q4 2020-3.3%+8.8%+28.5%
Q3 2020+10.7%-1.2%+29.3%
Q2 2020+4.4%+3.0%+3.5%
Q1 2020-7.5%-6.2%-1.7%
Q4 2019-5.2%-8.0%-56.2%
Q3 2019+1.4%+1.1%+0.3%
Q2 2019+0.9%-1.7%-6.9%
Q1 2019-1.0%-3.7%-4.9%
Q4 2018-1.9%-1.8%-2.3%
Q3 2018+1.4%-0.3%+5.3%
Q2 2018+2.2%+2.4%+9.3%
Q1 2018+3.4%+2.6%+2.3%
Q4 2017-0.3%-0.0%+0.8%
Q3 2017+2.7%+0.5%+5.5%
Q2 2017+0.7%+0.6%-6.0%
Q1 2017+0.1%-0.6%-4.2%
Q4 2016+2.4%+3.1%-1.6%
Q3 2016-0.7%-3.3%+7.2%
Q2 2016-2.1%-2.4%-3.8%
Q1 2016-1.1%
Q4 2015+1.8%
Q3 2015+0.2%
Q2 2015-0.9%
Q1 2015-3.6%
Q4 2014+0.9%
Q3 2014+1.5%
Q2 2014+0.0%
Q1 2014+0.2%
Q4 2013-0.1%
Q3 2013+0.6%
Q2 2013+0.8%
Q1 2013-0.1%
Q4 2012-0.5%
Q3 2012+0.9%
Q2 2012-2.4%
Q1 2012+2.1%
Q4 2011-2.9%
Q3 2011-0.3%
Q2 2011-6.4%
Q1 2011-1.8%
Q4 2010-1.5%
Q3 2010+0.7%
Q2 2010-1.3%
Q1 2009-4.1%
Q1 2010-4.1%
Q4 2009-0.6%
Q4 2007-0.6%
Q3 2008+0.1%
Q3 2009+0.1%
Q2 2008+0.8%
Q2 2009+0.8%
Q4 2008+0.8%

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro