11:25 AM EDT, 05/07/2024 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

After the earnings miss, we trim our price target by $1 to $21, using forward P/FFO of 9.5x our 2024 FFO estimate. This represents a premium to office REIT peers (8.3x) due to VNO's premium office portfolio. We lower our 2024 FFO estimate by $0.11 to $2.19 and 2025's by $0.02 to $2.34. VNO reported Q1 2024 FFO of $0.53 vs. $0.61, a $0.05 consensus miss on revenues that came in 3% below consensus. Same-store cash NOI dropped 5.0% Y/Y, led by New York (-5.1% Y/Y), 555 California (-4.4% Y/Y), and The MART (-3.3% Y/Y). Occupancy remained challenged given the difficult office market conditions, with New York office down 120 bps Q/Q to 88.2%, The MART down 160 bps to 77.6%, and 555 California flat at 94.5%. While asking rent growth remained positive in New York (+2.4% Y/Y), tenant improvements remain elevated at 14.5% of initial rents vs. 11.4% Q/Q. Office leasing was also weak in Q1, at 291,000 sq. ft. versus 840,000 sq. ft. in Q4. Leverage of 8.2x remains elevated, while interest coverage dropped to 1.9x.