Vornado Realty Trust (VNO) Financials

Vornado Realty Trust (NYSE: VNO) has displayed notable trends in its financials over recent quarters and years. Here's a summary of key points based on the last four years of income statements, cash flow, and balance sheets:

• Q1 2025 net income attributable to common shareholders was $86.8 million, a significant improvement compared to previous quarters, indicating recent positive momentum.
• Total revenue remained relatively stable, around $360 million to $375 million quarterly in 2024 and early 2025, supported mainly by steady non-interest income exceeding $440 million per quarter.
• Depreciation expense, a non-cash charge, consistently exceeded $100 million per quarter, supporting strong operating cash flow despite reported net losses in some quarters.
• Strong operating cash flow: For instance, Q1 2025 cash flow from operating activities was approximately $52 million, showing ongoing ability to generate cash from core operations.
• Investing activities showed variability, but recent quarters included sales/maturities of investments offsetting some purchases, with net investing cash of $275 million inflow in Q1 2025, likely from portfolio adjustments or asset sales.
• Vornado maintains substantial long-term debt, around $7.2 to $7.7 billion, which has fluctuated somewhat but remains a significant capital structure component.
• Preferred stock equity is stable above $1.18 billion, which can impact earnings available to common shareholders and dividend obligations.
• Total assets remained around $15.6 billion to $16.2 billion over recent periods, with premises and equipment (real estate holdings) representing the largest asset class, approximately $10 billion.
• Net interest expense is consistently high, approximately $87 to $89 million per quarter recently, driven by interest on long-term debt exceeding $90 million, which pressures earnings.
• Net income has been volatile historically, with several quarters showing losses (e.g., Q4 2023 loss of over $100 million), reflecting challenges in profitability and potential risks to investor returns.
• Cash flows from financing activities have been negative in recent quarters, showing large repayments of debt (e.g., $574 million repayment in Q1 2025) and dividend payments, which impact liquidity and capital allocation.
• Stockholders' equity showed some fluctuation, with retained earnings remaining negative (around -$4 billion), indicating accumulated losses or dividends exceeding earnings over time.

In summary, Vornado Realty Trust's financials indicate steady revenue generation and robust operating cash flow capacity, supported by substantial real estate assets and portfolio management activities. However, heavy debt loads and interest expenses create pressure on profitability, as seen in the earnings volatility. Recent quarters have shown improving net income and cash flow trends, which may suggest operational improvements or portfolio optimization. Investors should weigh the company's strong asset base and cash flow against the risks posed by debt servicing costs and fluctuating earnings.