Is Vornado Realty Trust profitable in 2026?

Vornado reported Q1 2026 revenue of $459.11 million, beating estimates, but posted an EPS loss of -$0.12 versus an expected -$0.05 (as of 2026-07-18, per marketbeat.com). Full-year 2025 comparable FFO was $2.32/share, with management guiding 2026 FFO roughly flat and a step-up expected in 2027 as PENN District leases commence.

Who owns Vornado Realty Trust?

Vornado is an independent public REIT (NYSE: VNO) with no parent company. Institutional and hedge-fund holders own roughly 90% of shares as of 2026-07-21, with Vanguard at about 7.8% (2026-07-16). Chairman and CEO Steven Roth, via Interstate Properties, holds a smaller direct stake and remains the dominant leadership figure.

Who is Vornado's biggest competitor?

SL Green Realty is Vornado's closest rival, both concentrated in Manhattan office. SL Green raised its FY2026 FFO guidance by 26% and reported 89.4% consolidated occupancy as of 2026-07-23, a momentum signal Vornado must match as it leases up its PENN District towers.

Could AI replace Vornado Realty Trust's business?

No, AI cannot replace physical office leasing, and AI firms are becoming Vornado's tenants rather than a threat. AI's share of NYC tech-sector leasing rose from 20.9% in 2024 to 55.9% by Q1 2026 (cushmanwakefield.com, 2026-06-01), and Vornado signed AI firm Altana AI to a full-floor 10-year PENN 2 HQ lease in June 2026.

Is Vornado Realty Trust stock a good buy in 2026?

Analyst sentiment has turned bullish: Piper Sandler set a $42 price target and Truist raised its target from $28 to $39 in July 2026. The stock traded around $39-40 with a 52-week range of $24.57 to $43.37 as of 2026-07-23, still far below its all-time high of $98.

What happened with Vornado's PENN District redevelopment in 2026?

PENN 2 reached 90% leased by June 2026 after Altana AI (62,309 sf, 10-year HQ lease) and Veeva (62,223 sf, 12-year lease) signed full floors at an average starting rent of $109/sf. PENN 1 still has 177,000 sq ft vacant plus 500,000 sq ft of first-generation leases yet to roll, per the 2026-02-11 Q4 earnings call.

Real estate developers · United States

Vornado Realty Trust

vno.com ↗

NYC landlord owning trophy office and retail towers clustered around Penn Station.

Hard to displace

Assessed 24 July 2026 · Evidence as of 24 July 2026

Strong structural protection; the business model survives ai pressure.

On the recordSince 24 July 2026 · Checkable from August 3-4, 2026 · Every call on the record Checkpoint: Q2 2026 earnings call covering PENN District lease-up and FFO guidance

The call

Vornado's Penn Station towers are filling with AI and life-science tenants at rising rents, while its fate still rides on rates, refinancing, and one man's succession.

Vornado Realty Trust owns and rents out office buildings in New York City, including the valuable PENN District above Penn Station. The buildings are hard to replace because the land is locked in by old zoning rules and the location is one-of-a-kind; no other real estate company can simply build the same thing somewhere else. Right now, AI companies and life sciences firms are moving into these buildings at strong prices, with one building already 90% full by mid-2026. The main thing to watch is whether older vacant office space in their other buildings fills up just as quickly, and whether interest rates stay low enough to keep rents climbing.

Why

AI pressure: None apparent. AI firms like Altana AI and Veeva are signing long leases at PENN 2, filling space rather than shrinking it. Could AI do the core job? Unlikely.

Bigger players: SL Green Realty and BXP. Both rivals own their own trophy Manhattan towers and compete for the same finance and AI tenants Vornado wants. Could a giant copy it? No, they are blocked.

What protects it. Penn Station air rights and zoning entitlements sit on land no other landlord can buy or replicate.

What would change this call

Q2 2026 earnings call (Aug 4, 2026) reports on PENN 1's 177,000 sf vacancy and 500,000 sf lease roll. Shows whether older PENN 1 space is re-leasing or dragging on FFO despite PENN 2 success.
Manhattan sublease inventory trend in next two quarterly reports after June 2026's 11M sq ft reading. Rising sublease space would signal demand reversal undercutting the AI leasing narrative.
Any announcement on Steven Roth succession plan or change in CEO/Chairman role. Disorderly leadership transition could threaten strategic continuity at Vornado.

Key numbers

PENN 2 reached 90% leased (2026-06-09)
AI share of NYC tech leasing rose from 20.9% to 55.9% (2026-06-01)
Manhattan sublease inventory fell to 11M sq ft from 23M peak (2026-06-26)

Named risks

Rate shock could force dividend cut or refinancing pressure on debt maturities. Severity: high
PENN 1's 177,000 sq ft vacancy and 500,000 sq ft of first-gen leases may fail to re-lease on schedule. Severity: medium
15 Penn Plaza supertall construction remains contingent on market conditions, already scaled back once. Severity: medium
Jared Solomon sentencing on 2026-08-04 coincides with Q2 earnings, risking negative press cycle. Severity: low
Succession uncertainty around longtime Chairman and CEO Steven Roth. Severity: medium

Rivals, as read in July 2026

Rival	Direction	Evidence
SL Green Realty	gaining on	Raised FY2026 FFO guidance 26%, occupancy 89.4% consolidated as of 2026-07-23
Boston Properties (BXP)	gaining on	Reported 1.1M sq ft of Q1 2026 leasing driven by AI demand, 27% pre-leased new tower
Empire State Realty Trust	contesting	Direct Manhattan office peer, no comparative leasing data available
Kilroy Realty	contesting	Named multi-market trophy-office peer, no direct 2026 comparison data provided

Questions people ask

Is Vornado Realty Trust profitable in 2026?: Vornado reported Q1 2026 revenue of $459.11 million, beating estimates, but posted an EPS loss of -$0.12 versus an expected -$0.05 (as of 2026-07-18, per marketbeat.com). Full-year 2025 comparable FFO was $2.32/share, with management guiding 2026 FFO roughly flat and a step-up expected in 2027 as PENN District leases commence.
Who owns Vornado Realty Trust?: Vornado is an independent public REIT (NYSE: VNO) with no parent company. Institutional and hedge-fund holders own roughly 90% of shares as of 2026-07-21, with Vanguard at about 7.8% (2026-07-16). Chairman and CEO Steven Roth, via Interstate Properties, holds a smaller direct stake and remains the dominant leadership figure.
Who is Vornado's biggest competitor?: SL Green Realty is Vornado's closest rival, both concentrated in Manhattan office. SL Green raised its FY2026 FFO guidance by 26% and reported 89.4% consolidated occupancy as of 2026-07-23, a momentum signal Vornado must match as it leases up its PENN District towers.
Could AI replace Vornado Realty Trust's business?: No, AI cannot replace physical office leasing, and AI firms are becoming Vornado's tenants rather than a threat. AI's share of NYC tech-sector leasing rose from 20.9% in 2024 to 55.9% by Q1 2026 (cushmanwakefield.com, 2026-06-01), and Vornado signed AI firm Altana AI to a full-floor 10-year PENN 2 HQ lease in June 2026.
Is Vornado Realty Trust stock a good buy in 2026?: Analyst sentiment has turned bullish: Piper Sandler set a $42 price target and Truist raised its target from $28 to $39 in July 2026. The stock traded around $39-40 with a 52-week range of $24.57 to $43.37 as of 2026-07-23, still far below its all-time high of $98.
What happened with Vornado's PENN District redevelopment in 2026?: PENN 2 reached 90% leased by June 2026 after Altana AI (62,309 sf, 10-year HQ lease) and Veeva (62,223 sf, 12-year lease) signed full floors at an average starting rent of $109/sf. PENN 1 still has 177,000 sq ft vacant plus 500,000 sq ft of first-generation leases yet to roll, per the 2026-02-11 Q4 earnings call.

Timeline

2026-07-23Vornado market cap ~$7.24B, stock trading around $39-40, 52-week range $24.57-$43.37
2026-07-21Piper Sandler sets $42 price target; Truist raises target from $28 to $39
2026-07-18Q1 2026 revenue $459.11M beats estimates; EPS -$0.12 misses consensus of -$0.05
2026-06-26Manhattan sublease inventory falls below 11M sq ft, down from ~23M sq ft in late 2022
2026-06-10Judge dismisses Korein family lawsuit over 1 Penn Plaza ground-lease valuation
2026-06-09PENN 2 reaches 90% leased after Altana AI and Veeva sign full-floor HQ leases
2026-04-25Ex-Vornado leasing VP Jared Solomon convicted of $9.5M fraud scheme
2026-02-11Q4 2025 earnings: FY2025 comparable FFO $2.32/share, PENN 1 has 177K sf vacancy
2025-11-0115 Penn Plaza supertall scaled back from 1,270 ft/61 floors to 1,000 ft/50 floors

Revision history

24 July 2026

First assessed. Hard to displace. The text above is fixed as of this date and is not edited afterwards.

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