Vornado Realty Trust

While most people don’t think of industrial data affecting office REITs, it does influence the top-line growth of commercial REITs like SL Green (SLG).

Small business accounts for roughly half of the U.S. gross domestic product (or GDP) and jobs.

On December 17, 2014, B/E Aerospace completed its spin-off of KLX, Inc., from B/E Aerospace, and KLX started trading on NASDAQ under the ticker symbol KLXI.

Private sector employment increased by 238,000 in December, while November’s numbers were revised upward from 215,000 to 229,000.

Capacity utilization rates are approaching long-term historical averages.

From 1972 to 2012, capacity utilization averaged 80.2% and bottomed at 66.9% in 2009 suggesting there’s a lot of room for production to expand before we start feeling inflationary pressures.

In order to qualify as REITs (real estate investment trusts), companies usually have to pay 90% of their profits (excluding capital gains) as dividends.

REITs depend on equity and debt for their working capital.

Although it is a common belief that high interest rates are usually bad for REITs like Boston Properties (BXP), Simon Property (SPG), Prologis (PLD), and Vornado Realty Trust (VNO), we find that REITs have continued in their growth trajectory in the past few months.

REITs have flourished for a considerable period in a record-low-interest-rate environment because they depend on debt and equity for their working capital.

Boston Property (BXP) has strong business momentum and has been maintaining a decent growth trajectory for the past few years.

Boston Properties raised its EPS (earnings per share) outlook for 2017 to a range of $2.72 to $2.77 per share.

The growing economy has acted as a boon to REITs, and with the help of their strategic initiatives, these REITs have been able to take advantage of the opportunity and report higher revenue and profits.

Boston Properties’ recent upbeat results came on the back of higher leasing activity as well as strong occupancy levels, which led to revenue growth.

GGP’s (GGP) debt-to-equity was 1.55x for 2Q17, which was higher than the industrial mean of 1.07x. As of 2Q17, GGP had $2.0 billion of liquidity.

Vornado’s recent development and redevelopment activities have made investors optimistic about the stock.

During 2Q17, Vornado Realty Trust (VNO) reported higher year-over-year top-line and bottom-line results backed by growth in rent and occupancy level.

Vornado Realty Trust reported adjusted FFO (funds from operation) of $1.35 per share, which beat Wall Street estimates of $1.20 per share.

Vornado Trust’s (VNO) top-line and bottom-line results improved year-over-year backed by higher rent growth and lower operational costs.

Vornado Realty Trust (VNO) reported decent results in 2Q17. Its top line and bottom line surpassed results from 2Q16 backed by higher rent and new lease activities.

Vornado Realty Trust (VNO) reported core funds from operation (or FFO) of $1.35 per share in 2Q17, which surpassed Wall Street estimates of $1.20 per share.

Vornado Realty Trust (VNO) reported higher year-over-year top-line and bottom-line results during 2Q17 backed by higher rent growth, lower costs, and new leases during the quarter.

VNO posted rental revenue of $626 million in 2Q17, missing Wall Street’s estimates of $633.2 million.

Analysts assigned VNO a mean price target of $89.52, 13.8% higher than its current price level.

VNO’s current price-to-FFO multiple is 17.77x. The company has been able to return value to its shareholders consistently in the form of dividends and share repurchases.

Although Vornado Realty Trust (VNO) may witness lower margins during a higher interest rate environment, it may see significant growth in the near future.

Wall Street expects Vornado Realty Trust (VNO) to post flat year-over-year top-line and bottom-line results in 2Q17.

Wall Street analysts expect Vornado Realty Trust (VNO) to report net operating income of $338.1 million in 2Q17.

Analysts expect Vornado Realty Trust (VNO) to report revenues of $622.3 million for 2Q17 when it releases its earnings on July 31, 2017.

Vornado Realty Trust (VNO) is scheduled to report its 2Q17 earnings on July 31, 2017.

Analysts assigned VNO a mean price target of $108.18, which is 12.9% higher than its current price level.

Vornado Realty Trust’s (VNO) total debt-to-total-equity ratio was 153.8%.

According to the University of Michigan, the June 2017 consumer sentiment index gained 1.7% year-over-year, standing at 95.1%.

After increasing interest rates in December 2016, the Fed hiked rates in March and June 2017 by 0.25%.

Vornado Realty Trust (VNO) invested in developing a high-demand office property in Highline at 512 West 22nd Street in Manhattan, which covers 173,000 square feet.

Vornado Realty Trust (VNO) disposed of its 32.7% stake in Toys “R” Us and Urban Edge Properties as part of its strategy to concentrate on its core business.

Vornado Realty Trust (VNO) is in talks to finalize the tax-free spinoff of its business in Washington, D.C. VNO expects to concentrate solely on its New York business after the spinoff.

Vornado Realty Trust (VNO) is selling off its non-performing assets and focusing on its core business in a move to improve its profitability. Analysts are encouraged by Vornado’s strategy of optimizing its profits.

In a private equity fund, you just have to put in the money, and the fund takes care of everything else.