VNO Intrinsic Value Calculator – Vornado Realty Trust Raised to Market Perform by BMO Amid Benign Rate Backdrop
December 17, 2023
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Vornado Realty Trust ($NYSE:VNO) recently had its rating upgraded to Market Perform by BMO Capital Markets, citing a benign rate backdrop that could provide upward momentum for the real estate investment trust. The trust also owns interests in land and hotel properties located in the United States and Europe. BMO stated that the favorable interest rate environment could boost Vornado’s performance and that it had a strong balance sheet with limited financial risk. The market perform rating is a sign of BMO’s confidence in Vornado’s ability to weather the current market downturn.
Additionally, BMO believes that rising rental rates and occupancy levels could further contribute to Vornado’s progress. With a diversified portfolio and steady cash flow, Vornado Realty Trust appears to be well-positioned to capitalize on the current market conditions. BMO’s market perform rating should give investors confidence in the investment potential of this real estate giant.
Market Price
On Friday, Vornado Realty Trust (VNO) opened at $31.3 and closed at $30.9, down by 1.3% from the previous closing price of 31.3. In the same trading session, BMO Capital Markets raised the market perform rating on VNO to “Market Perform” from “Underperform.” The analysts at BMO stated that this upgrade was based on the benign rate backdrop and the company’s strong balance sheet and improving portfolio performance. VNO is a real estate investment trust that specializes in owning, managing, and developing office and retail properties located in the United States.
The company has a long history of providing stable and secure dividend payments, and its stock is widely held by many institutional investors. With its strong balance sheet and improving portfolio performance, VNO is well positioned to benefit from the current favorable rate backdrop. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for VNO. More…
| Total Revenues | Net Income | Net Margin |
| 1.82k | -388.88 | – |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for VNO. More…
| Operations | Investing | Financing |
| 675.99 | 8.67 | -399.23 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for VNO. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 16.45k | 9.91k | 24.32 |
Key Ratios Snapshot
Some of the financial key ratios for VNO are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| – | – | 17.1% |
| FCF Margin | ROE | ROA |
| – | – | – |
Analysis – VNO Intrinsic Value Calculator
At GoodWhale, we have conducted a detailed analysis of VORNADO REALTY TRUST’s well-being. We have carefully examined the company’s financial performance and valuation, and have arrived at an intrinsic value of around $6.0 per share, calculated by our proprietary Valuation Line. However, VORNADO REALTY TRUST stock is currently trading at $30.9, representing an overvaluation of 415.8%. This presents an opportunity for investors to capitalize on the mispricing, and buy the stock for less than its intrinsic value. More…
Peers
Vornado owns and operates office, retail, and hotel properties in the United States. The company was founded in 1959 and became a public company in 1971. As of December 31, 2019, Vornado owned and operated 97 million square feet of real estate. The company’s portfolio is focused on high-density urban markets in New York City, Washington, DC, and San Francisco. Vornado’s primary competitors are KBS Real Estate Investment Trust III Inc, Boston Properties Inc, and Broadstone Net Lease Inc. These companies are all based in the United States and are focused on office, retail, and hotel properties.
– KBS Real Estate Investment Trust III Inc ($OTCPK:KBSR)
KBS Real Estate Investment Trust III Inc is a real estate investment trust that owns and operates a portfolio of properties in the United States. The company’s portfolio includes office, retail, industrial, and hotel properties. KBS Real Estate Investment Trust III Inc is headquartered in Newport Beach, California.
– Boston Properties Inc ($NYSE:BXP)
Boston Properties Inc is a real estate investment trust that owns, manages, and develops properties in the United States. As of December 31, 2020, it owned or had an interest in 171 properties, totaling approximately 51.4 million square feet. The company was founded in 1970 and is headquartered in Boston, Massachusetts.
– Broadstone Net Lease Inc ($NYSE:BNL)
The company’s market cap is 2.79B as of 2022. The company focuses on providing net lease financing solutions to tenants and landlords in the United States.
Summary
Vornado Realty Trust (VNO) is a real estate investment trust (REIT) that owns office and retail properties primarily in the United States. BMO recently upgraded its rating on VNO from Underperform to Market Perform based on the current benign rate backdrop. The analysts at BMO believe that lower interest rates could potentially lead to higher net operating income (NOI) growth, which will result in higher share prices for VNO.
Furthermore, the company’s portfolio diversification, stabilized occupancy, and conservative balance sheet should help buffer any volatility in the markets that may arise. Overall, BMO is positive on VNO and expects the stock to benefit from increasing demand for office and retail space.
