NYSE$VNO

Vornado Realty Trust · Q2 2021 earnings

Q2 2021 earnings · · Investor relations

Briefing

Vornado's financial performance improved in Q2 2021 compared to the previous year, with a significant increase in net income and adjusted FFO.

Vornado Realty Trust reported a net income attributable to common shareholders of $48.0 million, or $0.25 per diluted share, for the quarter ended June 30, 2021, compared to a net loss of $197.8 million, or $1.03 per diluted share, for the prior year's quarter. The company's FFO attributable to common shareholders plus assumed conversions was $153.4 million, or $0.80 per diluted share, compared to $203.3 million, or $1.06 per diluted share, for the prior year's quarter. Adjusted FFO increased to $133.2 million, or $0.69 per diluted share, from $107.4 million, or $0.56 per diluted share, in the prior year's quarter.

  • Net income attributable to common shareholders was $48.0 million, or $0.25 per diluted share, a significant improvement compared to the prior year's net loss.
  • FFO attributable to common shareholders plus assumed conversions was $153.4 million, or $0.80 per diluted share.
  • Adjusted FFO increased to $133.2 million, or $0.69 per diluted share, driven by tenant-related items, reduced general and administrative expenses, and improved performance in variable businesses.
  • The company completed several financing activities, including refinancing of One Park Avenue and 555 California Street, and issued senior unsecured notes.

Headline financials

Total Revenue

$379M

Previous: $343M+10.5%
EPS (adj)

$0.69

Previous: $0.55+25.5%
New York Office Occupancy

85.5%

No prior period
THE MART Occupancy

50.3%

Previous: -42.5%+218.4%
555 California Street Occupancy

114.3%

Previous: -5.0%+2386.2%
Capital Expenditures

-$360M

Previous: -$588M+38.8%
Free Cash Flow

-$295M

Previous: -$773M+61.8%
Net Income

$64.5M

Previous: -$185M+134.8%
Operating Income

$64.2M

Previous: $97.5M-34.2%
Gross Profit

$188M

Previous: $169M+11.5%
Cash & Equivalents

$2.17B

Previous: $1.77B+22.8%
Total Assets

$16.7B

Previous: $18B-7.7%
Stock-Based Comp

$6.15M

Previous: $7.7M-20.1%

Revenue & EPS history

Vornado · Revenue · Quarterly

$379M

Q2 2021+10.5%vs Q2 2020
Beat estimate in 9 of 16 quarters(56%)
ActualEstimate

Forward guidance

The company expects to complete the purchase of One Park Avenue in the third quarter of 2021 and anticipates the closing of the sale of the Paramus, New Jersey property in the fourth quarter of 2021.

Tailwinds

  • Resumption of trade shows at theMART expected in the third quarter of 2021.
  • Acquisition of remaining ownership interest in One Park Avenue is expected to be completed in Q3 2021.
  • Sale of Paramus, New Jersey property is anticipated to close in Q4 2021.
  • Refinancing activities have resulted in lower interest rates and extended maturities.
  • Leasing activity shows positive trends in mark-to-market rents in certain segments.

Headwinds

  • The COVID-19 pandemic continues to adversely affect the company's business, financial condition, and operating results.
  • Lower rental income and potentially lower occupancy levels at properties may result in less cash flow.
  • The value of real estate assets may decline, leading to non-cash impairment charges.
  • Economic conditions and limitations on international travel continue to affect the financial health of retail tenants.
  • Uncertainty remains regarding the duration of the pandemic, current and future variants, the efficacy and durability of vaccines against the variants and the potential for increased government restrictions.

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 Q2 2021

Historical avgQ2 2021

-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%

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