On Monday, Piper Sandler adjusted its financial outlook for Vornado Realty Trust (NYSE:NYSE:VNO), a real estate investment trust. The firm's analyst revised the price target downward to $22.00 from the previous $25.00 while maintaining an Underweight rating on the stock. The adjustment reflects a recalibration of the expected funds from operations (FFO) for the coming years.
The revised estimates take into account the first quarter of 2024 results and an anticipated decrease in occupancy. This decline is partly attributed to Meta Platforms Inc (NASDAQ:META).'s decision to partially vacate its premises at 770 Broadway, which was formerly occupied by Verizon Communications Inc (NYSE:VZ).
The firm now anticipates a decrease in the 2024 estimated FFO by $0.30, adjusting the figure to $1.99. Furthermore, the expectation for the 2025 FFO has been reduced by $0.40, setting the new estimate at $1.97. These projections are based on the latest available financial data and occupancy trends for Vornado Realty Trust.
The analyst from Piper Sandler highlighted the changes in the forecast, stating, "We are reducing our 2024E of FFO by $0.30 to $1.99 and lowering our 2025E by $0.40 to $1.97. Our updated estimates incorporate 1Q24 results and the updated occupancy dip, in part driven by Meta's partial move-out at 770 Broadway (former Verizon space)."
Vornado Realty Trust, listed on the New York Stock Exchange under the ticker VNO, is a company that specializes in owning and managing commercial real estate properties in various markets. The firm's portfolio includes office buildings and street retail in key locations.
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