Vornado Realty Trust’s VNO premium asset portfolio, strong leasing momentum and disciplined capital allocation continue to support growth prospects. Solid liquidity positions the company to enhance cash flows and create long-term shareholder value.
Analysts seem bullish on this Zacks Rank #2 (Buy) stock. The estimate revision trend for 2026 funds from operations (FFO) per share indicates a favorable outlook for the company, with estimates moving north over the past month.
Over the past three months, shares of Vornado have increased 52.4%, outperforming the industry’s 7.3% growth. Given its solid fundamentals and positive estimate revisions, the stock is likely to perform well in the quarters ahead.
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What Makes Vornado a Solid Choice?
Premium assets: Vornado’s portfolio is concentrated in high-quality properties, with a strategic emphasis on increasing its presence in the New York City office market. The company also holds a controlling stake in 555 California Street in San Francisco’s Financial District and owns theMART in Chicago’s River North District. By focusing on select high-rent, high-barrier-to-entry markets and a tenant base that includes industry bellwethers, Vornado is well-positioned to generate stable cash flows and drive long-term growth.
Leasing demand: Demand for amenity-rich, transit-oriented office properties should support rental revenue growth. Management highlighted that in 2026, Manhattan office leasing achieved its best first-quarter performance since 2014, as tenants competed for a limited supply of premium space. In the first quarter of 2026, Vornado completed leases for 426,000 square feet of office space, including 311,000 square feet in New York City. Manhattan office leases signed during the first quarter carried average starting rents of $103 per square foot, with mark-to-market rate increases of 11.7% on a GAAP basis and 9.7% on a cash basis.
In June 2026, PENN 2 also reached 90% occupancy after approximately 125,000 square feet of leases with Veeva and Altana. The new leases underscore Vornado's strategy of attracting high-quality tenants and improving occupancy.
Portfolio actions: Vornado continues to focus on improving its core business and pursue opportunistic investments and select asset dispositions. In June 2026, it completed the acquisition of a 49% interest in Park Avenue Plaza at a $1.1 billion gross valuation. The 1.2-million-square-foot asset is 99% occupied by blue-chip tenants, has an 11-year weighted-average lease term and carries substantially below-market rents. Management expects Park Avenue Plaza to be approximately 10 cents accretive on a full-year basis in the first year.
Liquidity and financing: Vornado has adequate liquidity and has addressed several maturities. As of March 31, 2026, the company had $2.6 billion of liquidity, including $1.21 billion of cash and restricted cash, and $1.39 billion available under revolving credit facilities.
In early 2026, it refinanced One Park Avenue for $525 million and 7 West 34th Street for $250 million. It completed a $500 million offering of 5.75% senior unsecured notes due 2033 and refinanced or upsized its unsecured credit facilities and its term loan. Management said it has addressed almost all 2026 and 2027 maturities.
Other Stocks to Consider
Some other top-ranked stocks from the broader REIT sector are American Tower AMT and Lamar Advertising LAMR, each carrying a Zacks Rank of 2 at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for AMT’s 2026 FFO per share is pegged at $10.95, which indicates year-over-year growth of 1.77%.
The Zacks Consensus Estimate for LAMR’s full-year FFO per share is pinned at $8.81, which calls for an increase of 6.66% from the year-ago period.
Note: Anything related to earnings presented in this write-up represents FFO, a widely used metric to gauge the performance of REITs.
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This article originally published on Zacks Investment Research (zacks.com).