Vornado swings to Q3 loss, FFO rises to 65 cents a share

Vornado Realty Trust (VNO) swung to a net loss in the third quarter of 2026, the company said in a results release dated Nov. 2. The loss attributable to common shareholders was $47.1 million, or 25 cents per diluted share, compared with net income of $11.6 million, or 6 cents, a year earlier.

Funds from operations, a measure real estate investment trusts use to gauge operating performance, rose on an as-adjusted basis to $126.66 million, or 65 cents per diluted share, from 57 cents a year earlier.

Here's how the company did:

• Net loss: 25 cents per diluted share, vs. net income of 6 cents a year earlier
• FFO, as adjusted: $126.66 million, or 65 cents per diluted share, vs. $114.54 million, or 57 cents, a year earlier
• Revenue: $467.66 million, vs. $453.70 million a year earlier, in line with the $466.62 million consensus estimate

Revenue has risen in each of the last three quarters, from $453.7 million to $462.2 million, according to its SEC filings.

350 Park Avenue joint venture

On Oct. 20, the existing joint venture between Vornado and Rudin formed a new venture with an affiliate of Kenneth C. Griffin, founder and CEO of Citadel, to develop an office tower of about 1.9 million square feet.

The site combines 350 Park Avenue, 39 East 51st Street and 40 East 52nd Street. Citadel Enterprise Americas LLC will be the anchor tenant under a 1,050,000 square foot lease.

The new venture closed a $3.3 billion construction loan. It bears interest at SOFR plus 3.00%, and matures in October 2032 with a one-year extension option subject to certain conditions.

Vornado contributed its wholly owned 350 Park Avenue property, valued at $900 million, or $500 million net of the $400 million mortgage satisfied at closing. Through the Vornado and Rudin joint venture, Vornado holds a 36.1% effective interest.

Vornado no longer holds a controlling financial interest, so it deconsolidated the properties from Oct. 20 and will account for the investment under the equity method. The company said it expects to recognize an estimated net gain of approximately $485 million in the fourth quarter of 2026.

Acquisitions and dispositions

On June 11, Vornado completed the purchase of a 49.0% interest in Park Avenue Plaza at a gross asset valuation of $1.1 billion. Fisher Brothers retains its 51.0% stake and continues to manage and lease the building.

On May 28, Alexander's, in which Vornado owns a 32.4% interest, sold its Rego Park I property for $235.5 million. Vornado recognized its $44.3 million share of the net gain.

Financing and buybacks

In January, Vornado sold $500 million of 5.75% senior unsecured notes due 2033 at 99.824% of face amount. It repaid its $400 million 2.15% senior unsecured notes at their June 1 maturity.

The company did not repurchase any shares in the third quarter. As of Sept. 30, $286.59 million remained available under its repurchase plan.

The company said it anticipates paying one common share dividend in the fourth quarter, subject to approval by its Board of Trustees.