NYSE$VNO

Vornado Realty Trust · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

Vornado's financial performance reflected a mix of strategic dispositions, leasing activities, and financing restructurings.

Vornado Realty Trust reported net income of $46.4 million, or $0.24 per diluted share, for the quarter ended June 30, 2023. The company completed the sale of the Rego Park III land parcel and restructured the 697-703 Fifth Avenue mortgage loan.

  • Net income attributable to common shareholders was $46.4 million, or $0.24 per diluted share.
  • FFO attributable to common shareholders plus assumed conversions was $144.1 million, or $0.74 per diluted share.
  • Completed the purchase of 39 East 51st Street for $40 million through a joint venture.
  • Completed a restructuring of the 697-703 Fifth Avenue $421 million non-recourse mortgage loan, reducing it to $355 million.

Headline financials

Total Revenue

$472M

Previous: $453M+4.2%
EPS (adj)

$0.72

Previous: $0.83-13.3%
New York Office Occupancy

224000.0%

No prior period
THE MART Occupancy

29000.0%

No prior period
555 California Street Occupancy

4000.0%

No prior period
Capital Expenditures

-$423M

Previous: -$490M+13.6%
Free Cash Flow

-$361M

Previous: -$424M+14.8%
Net Income

$61.9M

Previous: $65.9M-6.1%
Operating Income

$101M

Previous: $85.3M+18.3%
Gross Profit

$250M

Previous: $231M+8.0%
Cash & Equivalents

$1.13B

Previous: $988M+14.7%
Total Assets

$16.4B

Previous: $17.2B-4.2%
Stock-Based Comp

$11.9M

Previous: $5.85M+103.0%

Revenue & EPS history

Vornado · Revenue · Quarterly

$472M

Q2 2023+4.2%vs Q2 2022
Beat estimate in 11 of 15 quarters(73%)
ActualEstimate

Forward guidance

Vornado announced the postponement of dividends on its common shares until the end of 2023, and authorized the repurchase of up to $200,000,000 of its outstanding common shares.

Tailwinds

  • Cash retained from dividends or from asset sales will be used to reduce debt and/or to fund the share repurchase program.
  • The Board of Trustees has authorized the repurchase of up to $200,000,000 of its outstanding common shares.
  • Completed agreements with Citadel for 350 Park Avenue and 40 East 52nd Street.
  • Vornado/Rudin JV completed the purchase of 39 East 51st Street for $40,000,000.
  • Completed a $129,250,000 refinancing of 512 West 22nd Street.

Headwinds

  • The company announced the postponement of dividends on its common shares until the end of 2023.
  • There can be no assurance that the PENN District projects will be completed, completed on schedule or within budget.
  • There can be no assurance that the Company will be successful in leasing the properties on the expected schedule or at the assumed rental rates.
  • Sale of Manhattan Retail Properties is expected to recognize a financial statement loss of approximately $500,000.
  • Increase in interest rates and inflation may impact the business, financial condition, and results of operations.

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 2023

Historical avgQ2 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