Company Overview
Vornado Realty Trust operates as a fully integrated real estate investment trust managing a substantial portfolio of premier assets. The company focuses on office, retail, and multifamily properties located primarily within New York City, while also maintaining ownership of significant assets in Chicago. It is currently developing the new PENN DISTRICT project, marking its role as a developer in addition to its core investment activities. Operating within the Real Estate sector and specifically the REIT - Office industry, the company manages a market capitalization of $5.16B and generates annual revenue of $1.86B. With an employee count of 3145, the organization demonstrates a significant operational footprint that supports its extensive property holdings. The market capitalization of $5.16B indicates the aggregate market value of the company's outstanding shares, reflecting investor perception of its future cash flow potential. The annual revenue figure of $1.86B provides context for the company's scale, showing its ability to generate substantial income from its diverse portfolio of properties across multiple locations.
Financial Health
The company reports a trailing twelve-month revenue of $1.86B with a corresponding net income of $842.85M and EBITDA of $788.11M. The substantial gap between the total revenue and the net income reveals a cost structure where operating expenses and taxes consume a significant portion of top-line earnings. Vornado Realty Trust reports free cash flow of $1.27B, which indicates strong financial flexibility to fund operations, repay debt, or pursue strategic investments without relying heavily on external financing. The gross margin stands at 50.7%, suggesting efficient pricing power or favorable lease structures relative to the cost of revenue. Operating margins are recorded at 13.6%, reflecting the efficiency of core business operations after covering all internal operating expenses. Profit margins reach 48.5%, a figure that highlights the company's ability to convert revenue into bottom-line earnings effectively. Total cash holdings of $854.88M are compared against total debt of $7.94B, resulting in a debt-to-equity ratio of 116.66. This high debt-to-equity ratio indicates that the balance sheet is leveraged, relying significantly on borrowed capital to finance its asset base. The current ratio is 1.48, which suggests that the company possesses sufficient current assets to cover its short-term liabilities, indicating adequate short-term liquidity. Return on equity is 14.4%, demonstrating how effectively management utilizes shareholder equity to generate profits. Conversely, return on assets is 1.3%, which reveals the overall efficiency of the company in generating income from its total asset base.
Valuation Assessment
The trailing twelve-month P/E ratio is 5.88, while the forward P/E is significantly higher at 85.21. The stark difference between these two metrics implies that the market expects a substantial increase in earnings relative to the current price or anticipates current earnings to be an anomaly. The price-to-book ratio is 0.98, indicating that the stock trades at a slight discount to its book value rather than a premium. The price-to-sales ratio is 2.77, and the EV/EBITDA multiple is 17.50, providing alternative perspectives on valuation that account for enterprise value and earnings before interest, taxes, depreciation, and amortization. The 52-week high is $43.37 and the 52-week low is $24.57. Assuming a current price context relative to these bounds, the stock has experienced significant volatility within this trading range over the past year. The beta value is 1.53, which means the stock exhibits higher price volatility relative to the broader market, moving more aggressively than the average equity index.
Growth & Income
Revenue growth year-over-year is -8.1%, while earnings growth year-over-year is 1263.5%. The fact that earnings growth is dramatically faster than revenue growth suggests a potential shift in cost structures, one-time gains, or adjustments in non-recurring items affecting the bottom line disproportionately to sales. As a dividend payer, the company offers a dividend yield of 3.0% with a payout ratio of 17.6%. This low payout ratio indicates that the company retains the majority of its earnings, suggesting the dividend is highly sustainable given the company's earnings profile. The overall growth and income profile presents a scenario of revenue contraction offset by massive earnings expansion and a sustainable, yield-focused dividend policy.