GET DAILY SIGNALSVornado Realty Trust (VNO) Delivers FFO Beat With 9% NOI Growth Despite Q3 Net Loss
Key Takeaways
- Vornado Realty Trust posted a net loss of $47.1 million, or $0.25 per share, for the third quarter of 2026, versus net income of $11.6 million a year earlier.
- Adjusted funds from operations (FFO, a key profitability metric for real estate investment trusts) rose to $0.65 per share, beating the consensus estimate of $0.64 by $0.01 and up from $0.57 last year.
- Total revenue reached $467.7 million, up 3.1% year over year but slightly below the consensus expectation of roughly $476.5 million.
- Same-store net operating income (NOI) at Vornado's share increased 9% year over year, with portfolio occupancy at 91.5% as of September 30.
- The company formed a joint venture to develop a new office tower at 350 Park Avenue anchored by Citadel and expects to recognize a $485 million gain in the fourth quarter.
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Why Vornado's Results Matter in Today's Office Market
VNO stands as one of New York City's largest office and retail landlords, so its quarterly numbers offer a useful window into the Manhattan commercial real estate sector. The portfolio leans toward premium Midtown properties, which places the company in the stronger part of a market that continues to split between high-quality Class A buildings and older assets with softer demand. After an earnings beat in the second quarter, I was interested to see whether that momentum held amid higher financing costs and tenant concessions. The report also followed the late-October joint venture announcement for a new Citadel-anchored tower at 350 Park Avenue, a move that sits at the center of the company's longer-term strategy.
Breaking Down the Quarter's Numbers
For the period ended September 30, 2026, VNO reported a net loss attributable to common shareholders of $47.1 million, or $0.25 per share, compared with net income of $11.6 million, or $0.06 per share, in the same quarter last year. The difference largely stemmed from a sizable gain recorded in the prior-year period related to a master lease.
Total revenues climbed to $467.7 million from $453.7 million, a gain of roughly 3.1% that still fell a bit short of the consensus estimate near $476.5 million. I also checked this using Tickeron’s AI Screener to see how the stock compares to others in the industry.
On an FFO basis, which REITs rely on to gauge operating performance by excluding depreciation and certain non-cash items, results improved. FFO attributable to common shareholders plus assumed conversions rose to $122.6 million, or $0.62 per share, from $117.4 million, or $0.58 per share, a year earlier. Adjusted FFO, after removing one-time items, increased to $126.7 million, or $0.65 per share, from $114.5 million, or $0.57 per share. Same-store NOI at the company's share advanced 9% year over year, while portfolio occupancy reached 91.5%. Management credited the adjusted FFO gain to rent commencements net of expirations, the Park Avenue Plaza acquisition, and contributions from variable businesses such as signage.
How the Market Is Responding So Far
The results came out after the close on November 2, so the complete market reaction was still forming. Ahead of the release, shares traded near $34.55, down about 17% over the prior year, with analysts holding a consensus "Neutral" rating and an average price target around $39.23. Recent target revisions had moved lower, including cuts from BMO Capital, Piper Sandler, and Truist Securities.
The story was mixed. The adjusted FFO beat and 9% same-store NOI increase supported the idea that the premium Midtown holdings are holding steady, yet the revenue shortfall and shift to a net loss highlighted ongoing pressures from leasing costs and concessions. Investors are also weighing the new 350 Park Avenue joint venture, which management presented as a sign of confidence in top-tier Manhattan assets.
What to Watch Going Forward
The most immediate item ahead is the fourth-quarter gain connected to the 350 Park Avenue development. The company expects to book a gain of roughly $485 million in Q4 2026 from the new joint venture anchored by Citadel. That one-time item could shift reported results even as underlying operating trends remain the better indicator of performance.
Leasing velocity and rent spreads in the Midtown portfolio will stay important. The office market is dividing, with premium Class A buildings sometimes achieving record rents while older Class B properties lag. VNO's focus on higher-quality assets puts it on the favorable side of that split, though overall leasing activity across the sector remains below pre-pandemic levels.
Cost and capital trends also deserve attention. Higher interest rates continue to pressure office REITs, and the company has been addressing its balance sheet through refinancings and a share repurchase program. How upcoming debt maturities, tenant move-ins, and any further development plans are handled will help determine whether the positive same-store NOI trend can be sustained.
Using Tickeron AI Tools in My Research Process
I often turn to Tickeron's AI Screener when evaluating REITs like this one. It lets me quickly filter for technical patterns, fundamentals, and industry trends, which helps narrow down comparable names and spot broader sector signals without spending hours on manual screens. The tool has become a regular part of how I build context around individual earnings reports.
Disclaimer
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Contributor
Sergey Savastiouk, Ph.D. has a degree in Applied Mathematics from Moscow University and has extensive experience as an entrepreneur, investor, manager, and mathematician. His professional expertise is in applied mathematics, mathematical modeling, system and pattern analysis, and software and hardware system integration. He has served as the CEO of several hi-tech start-up companies and nonprofit organizations, which has given him proven capabilities in business strategy for high-tech start-up companies, market assessment, company formation, team building, product development, marketing, and sales. He has published numerous articles in journals and magazines on related fields. As a retail investor, he spent 15 years developing his proprietary trading and quantitative algorithms (now Tickeron’s A.I.), which brought him significant returns in trading the stock market. His current work and goal in founding Tickeron is to bring professional, sophisticated stock market analysis capabilities to retail investors via an easy-to-use interface.
VNO's Indicator enters downward trend
The Aroon Indicator for VNO entered a downward trend on October 23, 2026. Tickeron's A.I.dvisor identified a pattern where the AroonDown red line was above 70 while the AroonUp green line was below 30 for three straight days. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options. A.I.dvisor looked at 226 similar instances where the Aroon Indicator formed such a pattern. In 181 of the 226 cases the stock moved lower. This puts the odds of a downward move at 80%.
Technical Analysis (Indicators)
Bearish Trend Analysis
The Stochastic Oscillator demonstrated that the ticker has stayed in the overbought zone for 5 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
VNO moved below its 50-day moving average on October 30, 2026 date and that indicates a change from an upward trend to a downward trend.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where VNO declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 77%.
Bullish Trend Analysis
The RSI Indicator points to a transition from a downward trend to an upward trend -- in cases where VNO's RSI Indicator exited the oversold zone, 23 of 35 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are 66%.
The Momentum Indicator moved above the 0 level on October 22, 2026. You may want to consider a long position or call options on VNO as a result. In 63 of 83 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are 76%.
The Moving Average Convergence Divergence (MACD) for VNO just turned positive on October 20, 2026. Looking at past instances where VNO's MACD turned positive, the stock continued to rise in 29 of 40 cases over the following month. The odds of a continued upward trend are 73%.
Following a +2.50% 3-day Advance, the price is estimated to grow further. Considering data from situations where VNO advanced for three days, in 207 of 288 cases, the price rose further within the following month. The odds of a continued upward trend are 72%.
VNO may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
Fundamental Analysis (Ratings)
The Tickeron Seasonality Score of 50 (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron Price Growth Rating for this company is 55 (best 1 - 100 worst), indicating fairly steady price growth. VNO’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron PE Growth Rating for this company is 60 (best 1 - 100 worst), pointing to consistent earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Valuation Rating of 88 (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (1.383) is normal, around the industry mean (0.873). VNO's P/E Ratio (1136.667) is considerably higher than the industry average of (201.021). VNO's Projected Growth (PEG Ratio) (2.210) is slightly higher than the industry average of (0.666). Dividend Yield (0.022) settles around the average of (0.163) among similar stocks. P/S Ratio (2.964) is also within normal values, averaging (2.856).
The Tickeron SMR rating for this company is 97 (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Profit vs. Risk Rating rating for this company is 100 (best 1 - 100 worst), indicating that the returns do not compensate for the risks. VNO’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 93, placing this stock worse than average.
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Fundamental Analysis Ratings
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
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General Information
a real estate investment trust
Industry REITOffice
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