10-Q · May 4, 2026
Vornado Realty Trust reported Q1 2026 results showing a slight decline in revenues and a significant drop in net income year-over-year, reflecting ongoing challenges in the real estate market. While revenues slightly…
Earnings analysis · 10-Q
VNO earnings analysis
Filed August 3, 2026 · Our reading of the company's report
The latest report
Vornado delivered modest Q2 revenue growth to $462.242 million and stronger recurring FFO of $0.74 per share, supported by New York and THE MART same-store NOI growth and improving office leasing economics. However,…
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Vornado delivered modest Q2 revenue growth to $462.242 million and stronger recurring FFO of $0.74 per share, supported by New York and THE MART same-store NOI growth and improving office leasing economics. However, calculated operating margin compressed to 5.54% as expenses increased far faster than revenue, GAAP EPS fell to $0.08 following a nonrecurring $803.248 million prior-year gain, and 555 California cash NOI fell 48.6%. Liquidity of $2.0 billion supports near-term needs, though cash fell $188.626 million year to date amid acquisitions, investment spending, and refinancing activity.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $0.08
- Operating margin
- 5.54%
What stood out
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Revenue grew, but operating margin compressed
Q2 revenue increased $20.805 million year over year to $462.242 million from $441.437 million, led by a $23.794 million New York increase. Calculated operating margin was 5.54%, as expenses rose $57.889 million, more than the revenue increase.
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FFO per share increased 23.3% YoY
FFO attributable to common shareholders plus assumed conversions rose to $144.078 million, or $0.74 per diluted share, from $120.928 million, or $0.60 per share, in Q2 2025.
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Core New York and MART NOI improved
Same-store NOI at share rose 9.8%, including 11.9% growth in New York and 9.1% at THE MART. On a cash basis, same-store NOI grew 2.9%, with New York up 6.2% and THE MART up 15.1%.
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Office leasing spreads and occupancy improved
New York office leasing achieved a 5.0% cash-basis mark-to-market increase on 143,000 square feet of second-generation reletting, while New York office occupancy improved to 92.2% at June 30, 2026 from 91.2% at December 31, 2025.
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Liquidity remains substantial
Liquidity was $2.0 billion at June 30, comprising $789.0 million of cash and restricted cash plus $1.2 billion of revolver availability. The company also refinanced and upsized its revolvers to aggregate capacity of $2.130 billion.
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Capital return program accelerated
Vornado repurchased 1,787,090 shares for $53.461 million during Q2 at an average $29.92 per share; $286.590 million remained authorized under the repurchase plan as of August 3, 2026.
What to watch
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GAAP earnings fell sharply versus unusual prior year
GAAP EPS was $0.08 in Q2 2026, down from $3.70 in Q2 2025, because the prior-year quarter included an $803.248 million gain on the 770 Broadway master lease with NYU. Net income attributable to common shareholders fell to $16.434 million from $743.819 million.
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555 California cash NOI weakened materially
555 California Street same-store cash-basis NOI declined 48.6% year over year in Q2, to $8.962 million from $20.684 million. The filing attributes the difference between GAAP and cash NOI largely to GAAP rent starting on leases with free-rent periods.
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Investment spending exceeded operating cash flow
Cash and restricted cash decreased $188.626 million in the first six months to $788.920 million. Operating cash flow was $211.450 million while investing cash outflow was $498.647 million, including $120.333 million of real-estate additions and $62.849 million of development costs.
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888 Seventh Avenue debt remains in default
The $244.543 million mortgage on 888 Seventh Avenue matured unpaid in December 2025; lenders declared a default. A forbearance agreement defers payments through March 2027, when accrued interest and amortization become due absent earlier resolution.
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Material exposure to floating interest rates
A 1% increase in base rates would reduce annual net income attributable to Vornado by $11.838 million, or $0.06 per diluted share. Consolidated variable-rate debt was $1.973 billion at a 5.30% weighted-average rate.
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No formal risk-factor update; commitments remain
Item 1A states there were no material changes to risk factors disclosed in the 2025 Form 10-K. Nonetheless, the filing identifies $196.733 million of guarantees and $22.858 million of construction commitments at June 30, 2026.
Management's outlook
The 10-Q provides no quantitative earnings or revenue guidance. Management anticipates operating cash flow and cash balances will fund operations, distributions, dividends, debt amortization and recurring capex over the next 12 months, but says development, redevelopment and acquisition requirements may require borrowings, equity issuance and/or asset sales.
Earlier filings 4
10-K · February 9, 2026
Vornado's 2025 10-K shows stable top-line (total revenues of $1.810B in 2025 vs $1.788B in 2024) and a large swing to reported net income attributable to common shareholders of $842.9M in 2025 driven principally by a…
10-Q · November 3, 2025
Vornado reported total revenues of $453,700 (thousands) for Q3 2025, up from $443,255 in Q3 2024, while diluted net income per common share was $0.06 for the quarter (diluted), reversing a $(0.10) loss a year ago.…
10-K · February 10, 2025
Vornado’s 2024 10-K highlights a concentrated, NYC‑centric office and retail portfolio with $1,787,686 reported revenues (amounts in thousands) and operating results under pressure for common shareholders (net income…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.