Vornado Realty Trust (VNO) Financials

Vornado Realty Trust's financial performance over the last four years, based on quarterly data through Q1 2025, shows a mixed trend with significant fluctuations in net income and cash flows, impacted by interest expenses and special charges.

Positive highlights:

• Q1 2025 Net Income Attributable to Common Shareholders improved markedly to $86.8 million, compared to negative or near-zero income in several quarters throughout 2023 and early 2024, indicating a strong rebound.
• Consistent positive total revenue, around $350 million to $375 million quarterly, driven by stable non-interest income near $440 million to $460 million in recent quarters.
• Depreciation and amortization expenses remain steady, reflecting the underlying asset base with premises and equipment net value steady around $10 billion.
• The company shows strong operating cash flows, with Q1 2025 net cash from operating activities at $52 million, indicating positive cash generation from core business.
• Significant reduction in net loss and return to profitability compared to Q4 and Q3 2023, when net income attributable to common shareholders was deeply negative (e.g., -$61 million in Q4 2023).
• Total equity and noncontrolling interests increased to $5.49 billion in Q1 2025, up from about $5.73 billion in Q1 2023, indicating relatively stable shareholder equity amidst business fluctuations.
• Vornado maintained a large asset base with total assets around $15.6 billion in Q1 2025, showing a strong asset position despite some decline from prior years.

Neutral observations:

• Weighted average diluted shares outstanding remained fairly stable around 190-200 million shares, suggesting no major dilution or share buybacks recently.
• Preferred stock dividends consistently paid around $15.5 million quarterly, reflecting ongoing dividend obligations for preferred equity.
• Net interest expense remains high (e.g., Q1 2025 interest expense $95.8 million vs. interest income $8.2 million), reflecting leverage but stable relative to prior periods.

Negative factors:

• High interest expense ($95.8 million in Q1 2025) relative to interest income ($8.3 million) results in significant net interest expense, which pressures profitability.
• Total non-interest expenses remain elevated, with Q1 2025 at $282.5 million, including recurring depreciation and significant “other special charges” (notably negative $96.9 million, which may indicate credit or adjustments).
• Frequent quarterly losses observed in 2023 and early 2024 with large negative net income, notably Q4 2023 net loss attributable to common shareholders was -$61 million.
• Substantial debt level with long-term debt around $7.2 billion as of Q1 2025, and significant repayment activity impacting cash flows (e.g., Q1 2025 net repayment $574 million).
• Net cash used in financing activities was large in Q1 2025 (-$470 million), driven by debt repayments exceeding new issuances, which could constrain financial flexibility.
• Restricted cash remains a large portion of cash assets (~$238 million), which may limit cash liquidity.
• Retained earnings remain deeply negative (-$4.05 billion in Q1 2025), reflecting accumulated losses and prior earnings deficits which could weigh on equity strength.
• Negative earnings per share in many quarters in 2023 and early 2024, indicating volatility and earnings pressure over time.

In summary, Vornado Realty has shown meaningful recovery in profitability and maintained a stable asset base, but ongoing high interest expenses, significant leverage, and volatile earnings remain risks to consider. Investors should watch how management addresses debt levels and operational costs to sustain the improved net income trend into future quarters.