Scotiabank Cuts Vornado Target to $32; CEO Cites 4.6M Sq Ft Leasing, 11.6% Yield
Scotiabank cut Vornado Realty Trust’s price target to $32 from $36 while maintaining a Sector Perform rating and recommending higher development yields and near-term FFO growth. CEO Steven Roth highlighted 4.6 million sq ft leased in 2025, a PENN 2 cash yield upgrade to 11.6%, and the $218 million 623 Fifth Avenue acquisition for redevelopment.
1. Scotiabank Lowers Price Target
Scotiabank cut Vornado Realty Trust’s price target to $32 from $36 while maintaining a Sector Perform rating and advising higher development yields and stronger near-term FFO per share focus.
2. Manhattan Leasing Volume Jumps
During the Q4 2025 earnings call, CEO Steven Roth highlighted 4.6 million square feet of office leasing in Manhattan, the highest annual total since 2014 and the second-best result ever for the company.
3. PENN 2 Yield Increased
Vornado revised its projected incremental cash yield at the PENN 2 tower upward from 10.2% to 11.6%, reflecting stronger expected returns from its flagship redevelopment in the Penn District.
4. Key Property Acquisitions
The firm closed on the $218 million purchase of 623 Fifth Avenue and acquired 3 East 54th Street, with both properties slated for major redevelopment to drive future growth.