Vornado Realty Trust

888 Seventh Avenue, New York, NY 10106, United States

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About Vornado Realty Trust

Summary

Vornado Realty Trust, established in 1982 and headquartered in New York City, is a prominent American real estate investment trust (REIT) that specialises in office buildings and street retail in Manhattan. The company traces its origins to Two Guys, a discount store chain founded in 1947, which later became Vornado Inc. following the acquisition of O. A. Sutton Corporation in 1959. In 1993, Vornado was converted into a REIT.

Vornado’s portfolio includes significant properties in New York City, such as 56 Manhattan operating properties, with 20.1 million square feet of office space and 2.4 million square feet of street retail space. It also holds 1,330 residential units and development sites in the Penn District, including the iconic 350 Park Avenue. Additionally, Vornado owns a 32.4% interest in Alexander’s, Inc., which owns notable assets like 731 Lexington Avenue.

The company has expanded beyond New York with key assets such as The Mart in Chicago and a 70% interest in 555 California Street in San Francisco. Vornado is known for its commitment to sustainability, managing over 26 million square feet of LEED-certified buildings and earning the Energy Star Partner of the Year Award in 2024.

History

Vornado Realty Trust’s origins can be traced back to 1947 with the founding of the Two Guys discount store chain by brothers Sidney and Herbert Hubschman. In 1959, Two Guys acquired O. A. Sutton Corporation, the manufacturer of the Vornado line of electric fans, and the company was subsequently renamed Vornado Inc. By 1964, Two Guys operated over 200 stores.

In the 1970s, Vornado began divesting its retail operations. In 1978, the company sold 80 of its Two Guys locations in California. In 1980, Interstate Properties Inc., a real estate development company controlled by Steven Roth, acquired an 18% stake in Vornado, recognising the potential of the company’s real estate assets. In 1981, Interstate Properties took control of the company after winning a proxy struggle against existing management, and the number of stores was reduced to 12.

In 1986, Interstate Properties and Donald Trump jointly acquired a 20% stake in Alexander’s, a failing retailer with significant real estate holdings in Manhattan. Over time, Trump raised his stake to 27%, but in 1991, he was forced to turn over his shares to Citibank due to financial difficulties. In 1992, Roth and Alexander’s creditors forced the company into bankruptcy, and by 1993, Alexander’s emerged from bankruptcy as a real estate investment trust (REIT).

In 1993, Vornado Inc. was also converted into a REIT and became Vornado Realty Trust. The company acquired Citicorp’s interest in Alexander’s in 1995.

Vornado expanded its holdings in 1997 by acquiring a company owned by Bernard H. Mendik in a $654 million stock transaction, adding a large portfolio of office buildings in Manhattan to its assets. The company also made a bid for the World Trade Center lease in 2001, although it was outbid by Silverstein Properties.

In 2001, Vornado acquired Charles E. Smith Commercial Realty for $1.58 billion, further expanding its real estate portfolio. The company also bought a 32.5% interest in Toys “R” Us in 2005, though it later wrote off the investment after the company filed for bankruptcy in 2018.

In 2013, Steven Roth replaced Michael D. Fascitelli as CEO of Vornado. In 2015, Vornado spun off its interest in Urban Edge Properties, a company focused on retail holdings outside Manhattan, to its shareholders.

In 2025, Vornado completed the acquisition of 623 Fifth Avenue, a building currently 75% vacant, with plans to reposition and redevelop it into a premier Class A office space.

In September 2025, Vornado, in partnership with Rudin Management and investor Ken Griffin, received unanimous approval from the New York City Council for the development of a 1,600-foot-tall tower at 350 Park Avenue. The $4.5 billion project is set to become Midtown Manhattan’s tallest skyscraper, featuring 1.8 million square feet of office space, with Griffin’s Citadel and Citadel Securities occupying half. The project is expected to be completed in 2032.

Vornado’s financial performance in 2025 showed positive results. In the second quarter, the company reported net income of $743.8 million, or $3.70 per share, with funds from operations (FFO) of $120.9 million, or $0.60 per share. Adjusted FFO was $113.3 million, or $0.56 per share.

Despite these achievements, Vornado faced challenges in the market. In August 2025, the company reported revenue of $441.44 million for the second quarter, falling short of the expected $459.27 million. However, earnings per share were $0.18, surpassing the forecast of $0.13. The company’s stock experienced a decline following the earnings report.

Portfolio

Vornado Realty Trust’s portfolio is predominantly focused on owning, managing, and developing office buildings and high-street retail properties, with a significant concentration in New York City, along with key assets in Chicago and San Francisco. In New York, Vornado’s office holdings span over 20 million square feet, primarily in Manhattan’s core submarkets, including Midtown, Grand Central, Midtown South, Plaza District, and the Penn District. Notable properties in their office portfolio include 731 Lexington Avenue, home to Bloomberg L.P.’s headquarters, and 1290 Avenue of the Americas, which is anchored by Neuberger Berman. The company also owns PENN 1 & PENN 2, which are situated above Madison Square Garden and Penn Station, two of the busiest transportation hubs in North America. Another prominent asset is 7 West 34th Street, which houses Amazon’s first New York City headquarters.

Beyond New York, Vornado owns a 70% controlling interest in 555 California Street, a 1.8 million square foot office campus located in San Francisco’s Financial District. In Chicago, the company owns THE MART, which is the largest private commercial building in the United States, measuring approximately 3.7 million square feet. Vornado has also diversified its retail holdings across Manhattan’s busiest corridors, including 1540 Broadway and 660 Fifth Avenue, both in Times Square, along with 770 Broadway, a mixed-use building in NoHo that houses tenants like Meta Platforms and Wegmans. Additionally, Vornado owns a 32.4% stake in Alexander’s, Inc., which owns significant properties such as 731 Lexington Avenue.

Vornado’s development projects are an essential part of its strategy. Noteworthy developments include 350 Park Avenue, a proposed 1,600-foot-tall office tower in Midtown Manhattan, which is being developed in collaboration with Rudin Management and investor Ken Griffin’s Citadel. This project will offer 1.7 million square feet of office space, with Citadel occupying half. Demolition is slated for 2026, with completion expected in 2032. The company also plans the redevelopment of 15 Penn Plaza, a 1,270-foot-tall office tower at the site of the former Hotel Pennsylvania, with a total of 2.05 million square feet of office space. Another significant project is the acquisition and redevelopment of 623 Fifth Avenue, which Vornado purchased for $218 million, intending to transform it into a Class A boutique office space by 2027.

Leadership Team

Steven Roth | Chairman of the Board and Chief Executive Officer
Michael J. Franco | President and Chief Financial Officer
Glen J. Weiss | Executive Vice President ‐ Office Leasing and Co-Head of Real Estate
Barry S. Langer | Executive Vice President – Development and Co-Head of Real Estate
Haim Chera | Executive Vice President ‐ Head of Retail
Thomas Sanelli | Executive Vice President – Finance and Chief Administrative Officer

References

Vornado Realty Trust | A Fully Integrated Real Estate | Vornado Realty Trust
Vornado Realty Trust | Wikipedia
Vornado Realty Trust (VNO) Stock Price, News, Quote | Yahoo Finance
Vornado Realty Trust | Annual Reports
Vornado Realty Trust | Energy Star
Vornado Realty LP – Company Profile and News | Bloomberg
VNO: Vornado Realty Trust – Stock Price, Quote and News | CNBC
Vornado Realty Trust Company Details | Investing India
Vornado Realty Trust | Nareit
Vornado Realty Trust (VNO) Stock Price Today | The Wall Street Journal
Vornado Realty Trust Stock Quote (U.S.: NYSE) – VNO | Market Watch
Vornado Realty Trust (VNO) | Morningstar
Trade Vornado Realty Trust Shares | IG International

888 Seventh Avenue, New York, NY 10106, United States

Website https://www.vno.com/

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