Vornado Realty Trust refinanced PENN 11 with a $450 million loan at 6.35%, maturing in August 2030.
Quiver AI Summary
Vornado Realty Trust has successfully completed a $450 million refinancing deal for PENN 11, a large office building in Manhattan's PENN DISTRICT. The new five-year loan, which is interest-only and fixed at a rate of 6.35%, will mature in August 2030. This refinancing involved a reduction from a previous $500 million loan, from which Vornado paid down $50 million; the earlier loan had an interest rate tied to SOFR plus 2.06% but was swapped to a fixed rate of 6.28% and was set to mature in October 2025. Vornado Realty Trust operates as an integrated equity real estate investment trust.
Potential Positives
- Vornado Realty Trust successfully completed a $450 million refinancing of PENN 11, improving their capital structure and liquidity.
- The refinancing includes a fixed interest rate of 6.35% for five years, which provides predictability in interest expenses compared to the previous variable rate loan.
- By paying down $50 million of the prior loan, Vornado reduces its overall debt exposure and improves its financial position.
Potential Negatives
- The refinancing indicates a reliance on debt financing, which may raise concerns about the company's leverage and financial stability, especially in a rising interest rate environment.
- The fixed interest rate of 6.35% is relatively high compared to historical rates, potentially affecting future cash flow and profitability.
- The refinancing pushes the loan maturity to August 2030, potentially limiting financial flexibility in the near term as the company must manage its obligations over a longer horizon.
FAQ
What is the amount of the refinancing Vornado completed?
Vornado Realty Trust completed a $450 million refinancing of PENN 11, a Manhattan office building.
What is the interest rate on the new loan?
The new five-year loan has a fixed interest rate of 6.35%.
When does the refinancing loan mature?
The refinancing loan matures in August 2030.
How much was paid down on the prior loan?
Vornado paid down $50 million on the prior $500 million loan.
What was the interest rate on the previous loan?
The previous loan bore an interest rate of SOFR plus 2.06%, swapped to a fixed rate of 6.28%.
Disclaimer: This is an AI-generated summary of a press release distributed by GlobeNewswire. The model used to summarize this release may make mistakes. See the full release here.
$VNO Insider Trading Activity
$VNO insiders have traded $VNO stock on the open market 1 times in the past 6 months. Of those trades, 0 have been purchases and 1 have been sales.
Here’s a breakdown of recent trading of $VNO stock by insiders over the last 6 months:
- HAIM CHERA (EVP- HEAD OF RETAIL) sold 20,000 shares for an estimated $759,629
To track insider transactions, check out Quiver Quantitative's insider trading dashboard.
$VNO Hedge Fund Activity
We have seen 190 institutional investors add shares of $VNO stock to their portfolio, and 173 decrease their positions in their most recent quarter.
Here are some of the largest recent moves:
- PRICE T ROWE ASSOCIATES INC /MD/ removed 1,462,612 shares (-16.5%) from their portfolio in Q1 2025, for an estimated $54,102,017
- FMR LLC added 1,075,662 shares (+2968.4%) to their portfolio in Q1 2025, for an estimated $39,788,737
- INVESCO LTD. added 1,067,284 shares (+34.0%) to their portfolio in Q1 2025, for an estimated $39,478,835
- CITADEL ADVISORS LLC removed 1,066,751 shares (-47.2%) from their portfolio in Q1 2025, for an estimated $39,459,119
- VANGUARD GROUP INC removed 895,513 shares (-3.6%) from their portfolio in Q1 2025, for an estimated $33,125,025
- BAMCO INC /NY/ removed 893,247 shares (-36.6%) from their portfolio in Q1 2025, for an estimated $33,041,206
- AMERICAN CENTURY COMPANIES INC removed 774,577 shares (-66.3%) from their portfolio in Q1 2025, for an estimated $28,651,603
To track hedge funds' stock portfolios, check out Quiver Quantitative's institutional holdings dashboard.
$VNO Analyst Ratings
Wall Street analysts have issued reports on $VNO in the last several months. We have seen 0 firms issue buy ratings on the stock, and 2 firms issue sell ratings.
Here are some recent analyst ratings:
- Barclays issued a "Underweight" rating on 03/14/2025
- Goldman Sachs issued a "Sell" rating on 02/25/2025
To track analyst ratings and price targets for $VNO, check out Quiver Quantitative's $VNO forecast page.
$VNO Price Targets
Multiple analysts have issued price targets for $VNO recently. We have seen 8 analysts offer price targets for $VNO in the last 6 months, with a median target of $38.5.
Here are some recent targets:
- Nicholas Yulico from Scotiabank set a target price of $45.0 on 07/14/2025
- Vikram Malhorta from Mizuho set a target price of $43.0 on 07/14/2025
- Michael Lewis from Truist Securities set a target price of $38.0 on 06/03/2025
- Alexander Goldfarb from Piper Sandler set a target price of $39.0 on 05/23/2025
- Ross Smotrich from Barclays set a target price of $32.0 on 03/14/2025
- Ronald Kamdem from Morgan Stanley set a target price of $28.0 on 03/14/2025
- Caitlin Burrows from Goldman Sachs set a target price of $30.0 on 02/25/2025
Full Release
NEW YORK, July 16, 2025 (GLOBE NEWSWIRE) -- Vornado Realty Trust (NYSE:VNO) announced today that it has completed a $450 million refinancing of PENN 11, a 1.2 million square foot Manhattan office building located in THE PENN DISTRICT. The five-year interest only loan matures in August 2030 and has a fixed rate of 6.35%.
Vornado paid down by $50 million the prior $500 million loan that bore interest at a rate of SOFR plus 2.06% (swapped to fixed at an all-in rate of 6.28%) and was scheduled to mature in October 2025.
Vornado Realty Trust is a fully-integrated equity real estate investment trust.
CONTACT
Thomas J. Sanelli
(212) 894-7000
Certain statements contained herein may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are not guarantees of performance. They represent our intentions, plans, expectations and beliefs and are subject to numerous assumptions, risks and uncertainties. Our future results, financial condition and business may differ materially from those expressed in these forward-looking statements. You can find many of these statements by looking for words such as "approximates," "believes," "expects," "anticipates," "estimates," "intends," "plans," "would," "may" or other similar expressions in this press release. For a discussion of factors that could materially affect the outcome of our forward-looking statements and our future results and financial condition, see “Risk Factors” in Part I, Item 1A, of our Annual Report on Form 10-K for the year ended December 31, 2024. Currently, some of the factors are interest rate fluctuations and the effects of inflation on our business, financial condition, results of operations, cash flows, operating performance and the effect that these factors have had and may continue to have on our tenants, the global, national, regional and local economies and financial markets and the real estate market in general.
