Will Vornado Realty Trust (VNO)’s FFO Come In Above Expectations? First Quarter Outlook May Remain Muted

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Vornado Realty Trust (NYSE:VNO) will be disclosing their financial results on Tuesday after the market closes. Realty Trust companies are enjoying the market conditions in the property segment. The sector has come a long way and taken a long time to turn to a growth path after the housing bubble happened in the Americas in 2008. As a result, Real Estate Investment Trust or REIT companies started to perform very well in the recent past. However, the outlook may remain muted at least for the first quarter.

Expectations

Vornado Realty Trust (NYSE:VNO) suffered a loss from operations of four cents a share in the 2013-fourth quarter. However, twelve analysts’ consensus projections of funds from operations were $1.23 a share in the 2014-fourth quarter. The expectations not only suggest the improving market conditions but also provide an inclination as to how far the company could probe its opportunities and gain from it.

The pace of growth might be slower considering the previous year’s performance. For instance, Street analysts’ are estimating the company to record a modest uptick in revenue of 60 basis points to $677.44 million. In the 2013-fourth quarter, the company generated $673.31 million in revenue. In the third quarter too, it recorded 30 basis points of improvement.

The key factor is that there is no revision in FFO among the 12 analysts’ in the last three-month period. It remained stagnant at $1.23 FFO per share for the fourth quarter. However, analysts’ have reduced their estimation for the first quarter by as much as 17 cents of the FFO share to $1.19 from $1.36.

Previous Quarter Performance

Vornado Realty Trust (NYSE:VNO) delivered FFO of $1.15 a share while analysts’ predicted $1.16 a share thus missing by a cent. However, in preceding third quarters, the company’s FFO was better than predicted by the Street analysts’. Revenues rose modestly by 30 basis points to $670.91 million from $668.99 million in the same quarter previous year.

Viraj Shah

Viraj Shah has completed M.Com (Finance) and is currently pursuing his CFP. He tracks US markets along with other global markets like India very closely. He is very passionate about stocks, real estate, and technology. He also believes that money can always be made in the market.

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