Vornado Realty Trust: Preferred Shares Remain Attractive

Vornado Realty Trust offers well-covered preferred dividends, with a payout ratio under 14% and declining further as FFO grows. Consensus estimates project VNO's FFO per share to rise from $2.35 in 2026 to $2.69 in 2027, improving preferred dividend coverage. VNO.PR.L preferred shares yield 7.6%, trade at a 30% discount to par, and present an attractive risk/reward profile versus Treasuries. While VNO common shares look increasingly interesting, I remain focused on the preferreds given their strong coverage and yield advantage.

Vornado Realty Trust ( VNO ) is a fully integrated REIT focusing on office and retail assets in the New York metropolitan area . On top of its own buildings, Vornado has a 32.4% stake