Vornado Realty Trust Q4 FY2025 earnings call

• Leasing activity: 2025 was an industry-leading year with high Manhattan leasing volume, including 3,700,000 sq ft in Manhattan, and strong fourth quarter leasing in New York. - Penn District transformation: The Penn District is seeing high tenant demand due to quality space, transportation, and amenities. - Development projects: 350 Park Avenue new build to commence in April, acquisitions of development assets like 623 5th Avenue and 54th Street, and ongoing work on residential and retail developments. - Liquidity: Liquidity is $2,390,000,000 with cash balances and credit lines, and recent refinancing activity. - Stock buybacks: Gently started stock buybacks, with $80,000,000 spent on buying back 2,352,000 shares recently.

Office Segment: In 2025, Vornado leased 4,600,000 square feet of office space overall, with 3,700,000 square feet in Manhattan, 146,000 square feet in San Francisco, and 394,000 square feet in Chicago. Fourth quarter 2025 saw 25 New York office deals totaling 960,000 square feet at an average starting rent of $95 per square foot. Retail Segment: Demand for retail assets is robust and accelerated. Development Segment: Construction to commence in April on 350 Park Avenue; acquired 623 5th Avenue and 54th Street development sites; Sunset Pier 94 opened with all sound stages leased; The Perch pavilion opened at 1290 Avenue of The Americas.

• 2026 comparable FFO expected to be in line with 2025, with impact from noncore asset sales and redevelopment plans. - Anticipates occupancy to continue increasing as per strong leasing pipeline. - Balance sheet metrics expected to improve further with income from PENN1 and PENN2 coming online. - Financing markets recognized as strong for New York office assets, aiding refinancing and liquidity efforts.

• Market uncertainties: Potential discrepancies between stock price and asset value, and market conditions affecting real estate performance. - Streaming business challenges: Short-term leases at Sunset Pier 94 and realistic projections affecting yield expectations.

Q: Touching on the 350 Park announcement, any changes in structure?

A: Ken Griffin exercised an option, with amendments related to equity percentage, but economics mostly unchanged.

Q: Color on leasing pipeline and tenant conversations?

A: Leasing pipeline remains strong, with more than half new to buildings and renewals/expansions in financial services and law firms.

Q: Thoughts on share buybacks and dispositions?

A: Open to more aggressive share buybacks as stock is seen as undervalued, with some assets up for sale to generate capital.

Q: Difference between cash and GAAP same store NOI and inflection point?

A: Flip expected in the back half of 2026 as free rent burns off and tenants start paying rent normally.

Q: Retail rents and 657 5th Avenue?

A: Retail market on Upper 5th and Times Square improving but still struggling to reach pre-pandemic top rents; details on 657 5th Avenue lease still private.

Q: Gap between leased and economic occupancy and recognition?

A: $200,000,000 is an absolute number feeding into GAAP income as leases are recognized over time.

Q: Details on 623 5th Avenue project and FFO impact?

A: Projected to generate 10% return on cost, with potential to double money or more with leverage, and expected to add 11¢ to FFO.

Q: Sources and uses of funds?

A: Uses include development projects, buybacks; sources include income from free and clear assets and available financing options.

Q: TI and LCs in New York office and Sunset Pier 94 yield?

A: TI and LCs in Q4 were an outlier, not a trend; Sunset Pier 94 yield declined due to short-term leases and realistic projections.

Q: Retention rate on expirations and larger blocks?

A: Feels good about expirations in 2026, expecting two large blocks to renew.

Q: Citadel appetite for 350 Park and pre-leasing?

A: Citadel's appetite still being determined; strong excitement for the project with interest from small to large tenants