Vornado Realty TrustIts management said Tuesday that the company is unusually healthy as it reports positive leasing metrics and strong capital markets.
During its third-quarter earnings call on Election Day, Vornado reported that funds from operations (FFO) reached $126.6 million in the three months ended Sept. 30, compared to $114.5 in the third quarter a year earlier. Revenue also increased, rising to $467.6 million in the third quarter, compared to $453.7 million the company reported in the same period a year ago.
Vornado also reported a net loss of $47.1 million, compared to net income of $11.5 million for the same period in 2025, a metric that further reflects depreciation and amortization in the real estate investment trust’s portfolio focused on offices and retail.
“We had another very good quarter with mark-to-market results, thanks to same-store growth,” he said Steven RothCEO of Vornado Realty Trust, who noted that comparable FFO rose 14 percent from the third quarter of last year. “Everybody’s metrics are pretty good, but ours are incredible.”
In the first nine months of 2026, the company leased 1.6 million square feet, with Manhattan office transactions averaging $113 per square foot to start leases. In the third quarter, Vorando executed 30 office deals totaling 489,000 square feet, with an industry average starting rent of $123 per square foot and an average lease term of 9.5 years.
In addition, net operating income in the New York office was up 11.9 percent.
“Our budget shows this strong performance will continue through 2028,” Roth said. “New York’s office market is the strongest in the country and probably will be the strongest ever.”
Roth noted that Manhattan office leasing volume rose 9 percent last year, reaching the highest total leasing metric since 2000. During the third quarter, Manhattan office leasing totaled 10 million square feet, exceeding the five-year and 10-year monthly averages.
“We compete in a market of about 180 million square meters of class A or better buildings, the demand for good space is increasing rapidly and the availability of good space is evaporating,” he said. “We’re definitely in the landlord’s market.”
Roth also touched on the status of a major Vornado asset partner. During the third quarter, Penn 1 – 57-story real, 2.5 million square meters Midtown skyscraper – has been leased 10 offers totaling 248,000 square meters with an average starting rent of $123 per square foot. Office space at the asset is about 96 percent leased, according to the company.
Vornado also closed a $3.3 billion construction loan for 350 Park AvenueIts supertall office tower was developed with Citadel‘s Ken Griffin and Rudin. The company secured a 1.05 million-square-foot lease with Citadel at the project this quarter and said it will generate a more than 9 percent cost return, according to Roth.
“Vornado’s best-in-class assets and ability to attract and retain an attractive list of tenants, including some of the world’s leading companies, continue to set the standard for the New York office market,” Roth said during the call.
Michael Francopresident and chief financial officer of Vornado Realty Trust, noted several other positive capital market metrics, notably the expected 2.4 million square feet of New York office leases in 2026, which will be followed by 3.7 million square feet of office leases in 2025,
Franco also noted that the company expects full-year FFO in 2026 to be higher than in 2025, as well as next year.
“We expect significant additional growth in 2028 and beyond,” he said. “To put it simply: We’re firing on all cylinders at Vornado.”
Brian Pascus can be reached at bpascus@commericalobserver.com.