VNO - Embedded Expectations Analysis - 2019 07 16
Vornado Realty Trust (VNO:USA) currently trades near historical lows relative to Uniform Assets, with a 1.7x Uniform P/B. However, even at these levels, markets are pricing in bullish expectations for the firm, while management is concerned about maintaining their leverage profile, improving asset utilization, and maintaining recent transaction volume.Specifically, management may be concerned about their ability to maintain target leverage levels and find investment opportunities. Furthermore, they may be exaggerating the likelihood of a capital-gains dividend at year-end, and they may lack confidence in their ability to redeem their outstanding preferred equity in the near-term. Additionally, they may have concerns about the levels of downtime they are seeing between tenants, and they may be concerned about the sustainability of recent transaction volume in their New York Street Retail business.
Vornado Realty Trust is a real estate investment trust and conducts its business through, and substantially all of its interests in properties are held by, Vornado Realty L.P. (the Operating Partnership). The company is the sole general partner of the Operating Partnership. The company owns and operates office and retail properties with a concentration in the New York City metropolitan area. In addition, the company has interest in Alexander's, Inc., which owns properties in the New York metropolitan area, as well as interests in other real estate and related investments.
In 2009, just as the dust was settling from the last major equity and credit market crises, we launched a boutique research firm with the intention of breaking Wall Street’s biases and broken incentives:
- GAAP and IFRS have failed to provide rules for reliable financial statement reporting
- Stock analyst recommendations are not grounded in disciplined financial analysis
- Credit agencies have been set up to grossly fail in their responsibilities to investors and the public markets
- Utter lack of willingness of major research firms to employ the the most advanced forensic analysis available
We sought to provide investors and company analysts with a source of information that changed all that.
Many years later, our business model remains because little has changed on Wall Street.
- Corporate credit ratings remain years behind the fundamental underpinnings of company performance
- Stock analysts continue to make recommendations with deeply inherent biases
- Research firms have failed to break down the walls between credit, equity, and macroeconomic research
- The governing accounting bodies have created more leeway for mis-estimates and mis-classifications as financials have become unwieldy and overwhelming
The integrity of Valens Research is founded in our disciplined processes and analytics. No “star” analysts. No corporate advisory relationships. No-nonsense opinions and recommendations.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.