Vornado Realty Trust's joint venture sold part of its flagship store at 666 Fifth Avenue to UNIQLO for $350 million.
Quiver AI Summary
Vornado Realty Trust announced the completion of a sale of a portion of its U.S. flagship store at 666 Fifth Avenue to UNIQLO for $350 million. The sale involved the joint venture's 52% ownership and leaves Vornado with ownership of 23,832 square feet of retail space at the location, which includes Abercrombie & Fitch and Tissot stores. The proceeds from the sale, amounting to $342 million, were utilized to help redeem a portion of Vornado's preferred equity on the asset. Vornado Realty Trust, a fully integrated equity real estate investment trust, noted that certain statements in the announcement are forward-looking and may be subject to various risks and uncertainties that could affect future performance.
Potential Positives
- The completion of the $350 million sale to UNIQLO demonstrates Vornado Realty Trust's ability to successfully execute high-value transactions in prime retail locations.
- The $342 million in net proceeds from the sale enables Vornado to partially redeem its $390 million of preferred equity, improving its financial leverage and balance sheet strength.
- The continued ownership of 23,832 square feet of retail space at a prestigious location ensures ongoing revenue generation from established tenants like Abercrombie & Fitch and Tissot.
Potential Negatives
- Vornado Realty Trust is partially redeeming its $390 million of preferred equity, indicating potential financial strain after receiving only $342 million from the sale.
- The reliance on the sale proceeds to redeem preferred equity may raise concerns about the company's liquidity and overall financial health.
- The press release highlights risks such as increased interest rates and inflation that could negatively impact the company's future performance and tenant stability.
FAQ
What recent sale did Vornado Realty Trust announce?
Vornado announced the sale of its retail space at 666 Fifth Avenue to UNIQLO for $350 million.
How much of the U.S. flagship store was sold?
The joint venture sold a portion of the U.S. flagship store at 666 Fifth Avenue, retaining about 23,832 square feet.
What is Vornado Realty Trust's ownership stake in the joint venture?
Vornado Realty Trust owns a 52% stake in the street retail joint venture involved in the sale.
What were the proceeds from the sale used for?
The $342 million in net proceeds from the sale were used to partially redeem Vornado's $390 million preferred equity.
What type of company is Vornado Realty Trust?
Vornado Realty Trust is a fully-integrated equity real estate investment trust (REIT).
Disclaimer: This is an AI-generated summary of a press release distributed by GlobeNewswire. The model used to summarize this release may make mistakes. See the full release here.
$VNO Insider Trading Activity
$VNO insiders have traded $VNO stock on the open market 2 times in the past 6 months. Of those trades, 0 have been purchases and 2 have been sales.
Here's a breakdown of recent trading of $VNO stock by insiders over the last 6 months:
- RUSSELL B JR WIGHT has traded it 2 times. They made 0 purchases and 2 sales, selling 4,000 shares.
To track insider transactions, check out Quiver Quantitative's insider trading dashboard.
$VNO Hedge Fund Activity
We have seen 190 institutional investors add shares of $VNO stock to their portfolio, and 154 decrease their positions in their most recent quarter.
Here are some of the largest recent moves:
- BROOKFIELD CORP /ON/ removed 9,357,436 shares (-100.0%) from their portfolio in Q3 2024
- PRICE T ROWE ASSOCIATES INC /MD/ added 2,993,956 shares (+53.3%) to their portfolio in Q3 2024
- JPMORGAN CHASE & CO added 2,468,652 shares (+232.8%) to their portfolio in Q3 2024
- PRINCIPAL FINANCIAL GROUP INC added 2,286,997 shares (+428.3%) to their portfolio in Q3 2024
- NOMURA HOLDINGS INC removed 2,159,749 shares (-100.0%) from their portfolio in Q3 2024
- BAMCO INC /NY/ added 1,912,359 shares (+inf%) to their portfolio in Q3 2024
- CITADEL ADVISORS LLC added 1,762,476 shares (+127.2%) to their portfolio in Q3 2024
To track hedge funds' stock portfolios, check out Quiver Quantitative's institutional holdings dashboard.
Full Release
NEW YORK, Jan. 08, 2025 (GLOBE NEWSWIRE) -- Vornado Realty Trust (NYSE:VNO) announced today that its 52% owned street retail joint venture has completed the previously announced sale to UNIQLO of the portion of its U.S. flagship store at 666 Fifth Avenue owned by the retail joint venture for $350 million.
The joint venture continues to own 23,832 square feet of retail space (7,416 square feet at grade) at 666 Fifth Avenue consisting of the Abercrombie & Fitch and Tissot stores.
The $342 million of net proceeds from the sale were used to partially redeem Vornado's $390 million of preferred equity on the asset.
Vornado Realty Trust is a fully-integrated equity real estate investment trust.
CONTACT
Thomas J. Sanelli
(212) 894-7000
Certain statements contained herein may constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are not guarantees of performance. They represent our intentions, plans, expectations and beliefs and are subject to numerous assumptions, risks and uncertainties. Our future results, financial condition and business may differ materially from those expressed in these forward-looking statements. You can find many of these statements by looking for words such as "approximates," "believes," "expects," "anticipates," "estimates," "intends," "plans," "would," "may" or other similar expressions in this press release. For a discussion of factors that could materially affect the outcome of our forward-looking statements and our future results and financial condition, see "Risk Factors" in Part I, Item 1A, of our Annual Report on Form 10-K for the year ended December 31, 2023. Currently, some of the factors are the increased interest rates and inflation on our business, financial condition, results of operations, cash flows, operating performance and the effect that these factors have had and may continue to have on our tenants, the global, national, regional and local economies and financial markets and the real estate market in general.
