-- CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:
VNO reported Q1 revenue of $459M, down 0.5% Y/Y but $32M above consensus, with FFO per share of $0.52, down 17.5% Y/Y yet $0.01 above estimates. Same-store NOI showed 6.1% GAAP growth but declined 2.9% on a cash basis, with New York up 8.9% while 555 California Street fell 21.5%, reflecting continued reliance on rent concessions and free rent periods. We expect weak FFO growth in 1H 2026 due to rental concessions and negative re-leasing spreads from THE MART and 555 California Street properties. VNO maintained active capital allocation, acquiring 3 East 54th Street for $141M, purchasing 49% of Park Avenue Plaza, and repurchasing $80M in shares. Occupancy improved in New York to 90.3% (+620 bps Y/Y) but declined at 555 California Street to 86.7% (-560 bps Y/Y). Net debt-to-EBITDA increased to 8.1x from 7.7x following $500M debt issuance. We believe the Manhattan office market recovery remains gradual despite emerging positive leasing trends.