Vornado Realty rallies 15% after Q2 beat, Uniqlo deal

Vornado Realty Trust

06/08/2024 15:49

** Vornado Realty Trust's  VNO.N  shares rally, snapping
three-session losing streak on Tues, after commercial REIT
posted qtrly beat and said its JV entered transaction with
Uniqlo
    ** VNO shares rise as much as 15% to $31.36 to highest level
of 2024. Stock on course for biggest daily gain since Nov 14
    ** NYC-focused VNO late Mon reported Q2 adj FFO/sh of 57
cents, above LSEG estimate of 53 cents/sh
    ** Rev in qtr of $450.3 mln surpassed Street forecast of
$439.3 mln
    ** VNO also announced its majority owned retail JV entered
into agreement to sell Uniqlo the portion of its U.S. flagship
store at 666 Fifth Ave owned by the JV for $350 mln
    ** Uniqlo is primary subsidiary of Japan's Fast Retailing
 9983.T 
    ** The JV will continue to own about 24k sq feet of retail
space at 666 Fifth Ave consisting of Abercrombie & Fitch and
Tissot stores, VNO said
    ** All of estimated $340 mln of the sale's net proceeds to
partially repay $390 mln of VNO's equity on the asset
    ** Half of the 14 analysts covering VNO rate stock "hold",
rest recommend "sell" or "strong sell" and their median PT is
$24 - LSEG
    ** With move on the session, VNO shares up ~11% YTD

 (Lance Tupper is a Reuters market analyst. The views expressed
are his own)
 ((lance.tupper@thomsonreuters.com
lance.tupper@tr.com 1-646-279-6380))