Bullish indicating open at $55-$60, IPO prices at $37
NEW YORK - Vornado Realty Trust (NYSE:VNO), an $8.2 billion market cap REIT with $1.9 billion in annual revenue, announced today it has completed a $450 million refinancing of PENN 11, a 1.2 million square foot office building located in Manhattan’s Penn District. According to InvestingPro data, the company maintains strong liquidity with a current ratio of 4.24x.
The five-year interest-only loan matures in August 2030 and carries a fixed interest rate of 6.35%. The real estate investment trust paid down $50 million of the previous $500 million loan that was scheduled to mature in October 2025.
The prior loan had an interest rate of SOFR plus 2.06%, which was swapped to a fixed all-in rate of 6.28%.
PENN 11 represents a significant property in Vornado’s portfolio of Manhattan commercial real estate holdings. The refinancing extends the maturity date by nearly five years from the original loan.
The announcement comes as commercial real estate owners navigate a challenging financing environment with elevated interest rates compared to previous years.
This information is based on a press release statement from Vornado Realty Trust.
In other recent news, Vornado Realty Trust reported a strong performance for the first quarter of 2025, with earnings per share reaching $0.43, significantly exceeding the projected $0.14. The company’s revenue also surpassed expectations, totaling $461.58 million compared to the forecasted $454.5 million. In a strategic move, Vornado has agreed to sell a Chelsea office building through its joint venture for $205 million, with plans to finalize the transaction by the third quarter of 2025. This sale is part of Vornado’s broader strategy to manage its real estate portfolio amid shifting market conditions. Analysts at Truist Securities have raised their price target for Vornado Realty Trust to $38, maintaining a Hold rating, citing recent leasing agreements as a positive influence on occupancy rates. Additionally, concerns have arisen in the real estate sector following Zohran Mamdani’s lead in New York City’s Democratic mayoral primary, which has sparked fears of potential rent control policies. Despite these challenges, Vornado continues to execute strategic leasing agreements, such as those with New York University and Universal Music Group, which are expected to enhance occupancy rates in New York offices.
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