Vornado Realty Trust, Inc. VNO announced that it has completed a refinancing of $450 million for PENN 11, a Manhattan office building encompassing 1.2 million square feet of space located in THE PENN DISTRICT.
The five-year interest-only loan is set to mature in August 2030 and carries a fixed interest rate of 6.35%. Vornado paid off $50 million of its previous $500 million loan, which had an interest rate of SOFR plus 2.06% (swapped to a fixed rate of 6.28%) and was due to mature in October 2025.
VNO: In a Snapshot
This refinancing offers Vornado enhanced financial flexibility. The extended maturities of the assumed debt will help the company improve its maturity profile and enjoy greater liquidity for day-to-day operations.
VNO makes efforts to boost its cash flow and alleviate bottom-line pressure. Further, it focuses on achieving greater financial flexibility and strengthening its balance sheet position. As of March 31, 2025, the company had $2.3 billion of liquidity, consisting of $807 million of cash and cash equivalents and restricted cash, and $1.5 billion available under its $2.2 billion revolving credit facilities.
In the past three months, shares of this Zacks Rank #3 (Hold) company have gained 13.8% compared with the industry's growth of 3.2%.
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Stocks to Consider
Some better-ranked stocks from the broader REIT sector include Digital Realty Trust DLR and Cousins Properties CUZ, each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for DLR’s 2025 FFO per share has moved a cent northward to $7.04 over the past week.
The Zacks Consensus Estimate for CUZ’s 2025 FFO per share has moved a cent northward to $2.80 over the past two months.
Note: Anything related to earnings presented in this write-up represents funds from operations (FFO), a widely used metric to gauge the performance of REITs.
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Vornado Realty Trust (VNO) : Free Stock Analysis Report
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This article originally published on Zacks Investment Research (zacks.com).
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