Vornado Posts Q3 Beat on NYC Leasing as It Plans Penn District Retail Overhaul

Overview

• Funds from operations were $114.5 million, or $0.57 per share, on revenue of $453.7 million, topping analyst estimates and rising year over year.
• New York office occupancy increased to 88.4% from 86.7% on strong leasing at Penn 2, including a 200,000-square-foot Verizon headquarters lease and deals with FGS Global.
• Through the first nine months of 2025, the company leased 3.7 million square feet overall with 2.8 million square feet in Manhattan, and it expects its Manhattan leasing volume to be the highest in more than a decade.
• Management outlined a Seventh Avenue and 34th Street retail redevelopment in the Penn District that will take some income offline, alongside planned non-core asset sales, resulting in guidance for “flatish” 2026 FFO versus 2025.
• The company signed 244,000 square feet of office leases in San Francisco and reported signs of recovery there, while projecting Penn 2 occupancy to climb into the low 90% range over the next 12 months.