Vornado posts $0.25-per-share loss and $467.66 million in third-quarter revenue
Key Facts
Vornado Realty reported after the market close on November 2 a net loss attributable to common shareholders of $47.138 million, or $0.25 per diluted share, in the third quarter of 2026. Reuters reported that analysts expected a loss of $0.1253 per share, making the reported loss wider than estimates. Revenue was $467.66 million, below forecasts of $475.89 million, according to Reuters. The results presented a mixed picture: an accounting loss and revenue below expectations, alongside growth in an operating measure used by real estate companies to track performance. The company said adjusted funds from operations rose year over year, adding an operating-performance measure alongside the net loss.
Adjusted funds from operations were $0.65 per diluted share, compared with $0.57 in the same quarter of 2025, according to the company's filing with the U.S. Securities and Exchange Commission. Funds from operations before adjustments were $0.62 per share, versus $0.58 a year earlier. Reuters reported that adjusted funds from operations exceeded analyst expectations, even as the reported per-share loss was greater than expected. The divergence reflects the different measures: net loss records the accounting result attributable to shareholders, while funds-from-operations figures provide a way to track real estate operating performance using the measure reported by the company. Vornado's main quarterly metrics therefore did not move in a single direction.
At the operating level, same-store net operating income for Vornado's New York offices in properties in which it has an ownership interest rose 11.9% on an accrual basis and 8.7% on a cash basis from a year earlier, according to Reuters. The company's results also showed a 10.2% year-over-year quarterly increase in the same measure, and 4.9% on a cash basis. These figures point to improved performance at existing offices, with lower growth on the cash measure than on the accrual measure. In New York, Vornado signed 30 office leases during the quarter covering 489,000 square feet, at an average starting rent of $123 per square foot, Reuters reported. The company's leasing schedule listed the same area, a starting rent of $122.96 per square foot, and a weighted-average lease term of 9.5 years.
Vornado's New York office occupancy was 93.0% on September 30, 2026, while overall portfolio occupancy reached 91.5%, according to the company's filing. These rates put leasing indicators in the context of the property base that generated net operating income growth during the quarter. They do not, however, offset the net loss or by themselves explain why revenue fell short of analyst estimates. For the nine months ended September 30, the company recorded a net loss attributable to common shareholders, compared with net income in the same period a year earlier, according to the company. It attributed the decline in the comparison primarily to the prior-year gain from the master lease of 770 Broadway with New York University.
After the results were released, Vornado shares fell 2.72% to $34.02 on November 3 at the time of Reuters' report, compared with a previous close of $34.97. EL7 data recorded the same closing price, $34.97, in the November 2 session, before the results were announced after the market close. The share-price move reported on November 3 therefore followed the results announcement, rather than occurring during the previous closing session. Management said it expects full-year 2026 adjusted comparable funds from operations to exceed 2025 levels. The report did not give a specific later date for the results, while the company scheduled its third-quarter results discussion call for November 3 at 10 a.m. U.S. Eastern time.