Vornado Reports Flat Q4 Earnings But ‘Robust’ Leasing Demand

Vornado Realty Trust’s stock was trading in the green when the market opened Tuesday morning, after the real estate investment trust (REIT) posted its earnings results for the fourth quarter of 2025.

Funds from operations (FFO) for the fourth quarter came in at $112.9 million, or 56 cents per diluted share, compared to $117.1 million, or 58 cents per diluted share, for the same quarter the previous year, according to Vornado’s earnings report.

Net income fell a bit short at $601,000, compared to $1.2 million during the same quarter a year ago. 

On the bright side, revenue for the fourth quarter was $453.7 million, topping the $434.8 million analysts were expecting. For the full year, Vornado posted FFO of $486.8 million and revenue of $1.81 billion. 

The firm credited its leasing momentum across Manhattan and within its portfolio of Penn District buildings as the reason for its relatively steady earnings results for the quarter and the year. 

“The long and short of it is that tenant demand from finance, tech and most other industries is extremely robust in the face of declining availabilities in the better building subset,” Vornado CEO Steven Roth said Tuesday on the company’s earnings call. “Take a look at our assets. We have the Penn District, our city within the city, a roster of our other assets in the better building category, where in-place rents are well under market and market rents are rising. We have an irreplaceable portfolio.”

Vornado added to its portfolio in 2025 with the acquisition of 623 Fifth Avenue. Roth called the $218 million acquisition of the 36-story office condo on Fifth Avenue the “best deal ever.” The building sits atop the flagship Saks Fifth Avenue department store. 

“The location is the middle of everything, with unique light and city views,” Roth said on the earnings call. “You can reach out and touch Rockefeller Center, St. Patrick’s Cathedral, J.P. Morgan Chase‘s new headquarters, and even our 350 Park Avenue. The building is substantially vacant, which is a huge advantage to us as a redeveloper.”

Roth also noted that Saks Fifth Avenue is in bankruptcy, but said he isn’t worried about the troubles facing the retailer impacting Vornado’s future with the building. 

Last month, Vornado acquired 3 East 54th Street for $141 million from Cohen Brothers Realty, having previously acquired the mortgage on the “demolition-ready asset ” in two transactions in 2024 and 2025. 

Over the course of 2025, Vornado leased 4.6 million square feet of office space, consisting of 3.7 million square feet in Manhattan, 446,000 square feet in San Francisco, and 394,000 square feet in Chicago. Although operating in other markets, the firm is primarily focused on Manhattan office leasing, and in 2025, it recorded its highest Manhattan leasing volume in over a decade. 

“At Vornado business is good and getting better,” Roth said on the call. “Manhattan is clearly far and away the best office — and residential too, by the way — real estate market in the country. As predicted on our recent calls, New York is now on the foothills of the best landlords market in 20 years. We believe this landlord’s market in Manhattan will continue to tighten and last for a long time.”

Amanda Schiavo can be reached at aschiavo@commercialobserver.com.