Citi Comments On Vornado Realty Trust At Global Property CEO Conference

In a report published by Citi, Vornado Realty Trust's VNO CEO, Mike Fascitelli, commented that it is easy to grow, but more difficult to get bigger and become more profitable.

Citi said that despite a lack of deals over the last two years, mgmt is actively looking for ways to grow and is committed to increasing shareholdervalue – “make money for you and make money for us.” “VNO will remain focused on value-add acquisitions that may be complex – “a little like Picasso” – in order generate excess returns, while staying true to their underwriting criteria (either strong rent growth or low exit cap, but not both). New senior executives at the company are pushing for growth, the deal pipeline is increasing (recent acquisition of One Park Ave, possibly future opportunities through LNR) and VNO expects to be more active over the next 12-months. Development is also a source of future upside, but longer term, and exact timing uncertain (Hotel Penn, Port Authority, Crystal City, CPS Residential, etc).”

Vornado Realty Trust closed yesterday at $87.23.