Vornado shares slide after dividend postponed (updated)

Vornado Realty Trust

27/04/2023 16:08

(Adds detail on office tower sale, updates stock price)
       NEW YORK, April 27 (Reuters) - Shares of Vornado Realty
Trust, a New York-based real estate investment trust hard hit by
the impact of remote work, fell in early trade on Thursday after
the company postponed its dividend payment for common shares
until the end of 2023.
    The board at Vornado  VNO.N  also authorized the buyback of
$200 million in common stock in a share repurchase program.
    Vornado shares fell 2.4% to $14.57 in morning trade after
selling for less than $13 a share in pre-market trade. The stock
has fallen 28% year-to-date as of Wednesday.
    The trust cut its dividend by 30% in January when it was
removed from the S&P 500 index  .SPX .
    Office building landlords in New York and other big cities
have seen vacancy rates climb as remote work and a hybrid office
model have cut demand for traditional workspace.
    A 22-story office tower for sale in San Francisco's
financial district that was worth about $300 million in 2019 is
expected to soon attract bids of around $60 million, The Wall
Street Journal reported on Thursday, citing brokers.
    Vornado faces an outsized interest rate risk given its
elevated leverage levels, Citigroup said in a research note last
month. About $1 billion of debt comes due through 2024, it said.
    "Valuation continues to be discounted but we struggle to
identify positive catalysts that warrant an improvement in the
valuation gap," Citi analyst Michael Griffin said.

 (Editing by Emelia Sithole-Matarise and Barbara Lewis)
 ((emelia.sithole@thomsonreuters.com;))