Vornado Chalks Up Q2 Earnings Rise to Massive NYU Lease
Verizon’s recent Penn 2 lease also contributed to strong quarterly results
By Amanda Schiavo August 5, 2025 1:50 pm
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Vornado Realty Trust reported strong financial results for the second quarter of 2025, as well as a year-over-year increase in funds from operations of over 5 percent for the three months ended June 30.
Net income came in at $3.70 per share, compared to $0.18 cents per share for the same period in 2024. Vornado attributed the rise to the $803 million gain related to the 770 Broadway master lease with New York University, which the two sides finalized in May.
Quarterly funds from operations were $0.60 per share, below the $0.76 posted in the 2024 second quarter, but above the $0.53 per share Zacks Consensus Estimate analysts were expecting.
Robust leasing activity in Manhattan played a big part in the firm’s positive earnings growth.
“Our business continues to be strong. It’s getting stronger, and I remain incredibly enthusiastic about our future prospects,” Steven Roth, CEO of Vornado, said on the company earnings call Tuesday morning. “We had an excellent quarter. By excellent I mean leasing, balance sheet and [the Penn district] were all excellent.”
In addition to the NYU lease, during the second quarter Verizon inked a 203,000-square-foot lease at 2 Pennsylvania Plaza, also known as Penn 2.
“Manhattan is universally claimed to be the strongest real estate market in the country, and I mean it’s the strongest by far,” Roth noted. “While Manhattan may have nearly 420 million square feet of office space, we actually compete in a much smaller, 180 million-square-foot class, a better building market. Our clients are expanding. Demand is strong, and here’s the punchline: Available space continues to evaporate quickly.”
Amanda Schiavo can be reached at aschiavo@commercialobserver.com.
