Research Alert: CFRA Maintains Sell Rating On Shares Of Vornado Realty Trust
CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:We lower our target by $1 to $26, 11.7x our 2026 FFO per share view. This is above office REIT peers but below VNO's three-year average forward multiple (13.6x), as negative re-leasing spreads and high vacancy levels remain despite an improving office outlook. We lower our 2026 FFO view by $0.07 to $2.22 and raise 2027's by $0.08 to $2.40. There is now increased uncertainty around whether the 350 Park Avenue redevelopment will move forward; it was the first specific item mentioned by management on the call. Citadel will ultimately decide whether the $4.5B project moves forward following a public spat with the NYC Mayor. We note that Verizon will not be building out its PENN 2 lease and has chosen to sublet the space, indicating a recent change in plans. Both PENN 1 and PENN 2 have already completed the heavy lifting for leasing, with financial benefits expected in early 2027. VNO's Park Avenue Plaza acquisition is expected to be accretive this year, with rents 40%-50% below market providing future upside.
