REITs reap rewards from keeping it simple

Vornado follows national trend of paring back portfolios to focus on core assets

TRD New York /
Sep.September 24, 2014 11:00 AM

In April, Vornado Realty Trust announced that it would spin off more than 80 U.S. shopping centers into a separate publicly traded real estate investment trust. The strategy — which has seen the company focus on office and retail property — fits into what has since become a broader trend of REITs slimming down portfolios and setting their sights on core business.

The moves have been welcomed by investors, who see diversity as a liability because different types of property are valued with different models, the Wall Street Journal reported. Investors also see value in a simple, straightforward operating strategy, investors told the newspaper.

Traders sent the share price of Vornado 11 percent higher in the two months following the announcement, though the stock is now trading at just about four percent above the price prior to the spinoff. [WSJ]Tom DiChristopher


Related Articles

arrow_forward_ios
Vornado's Steve Roth and 220 Central Park South (Credit: Getty Images, iStock)

Free and clear: Vornado pays off debt at 220 CPS

Free and clear: Vornado pays off debt at 220 CPS
Vornado chairman and CEO Steven Roth, and 608 Fifth Avenue (Credit: Getty Images)

“Negative surprises”: Vornado execs talk retail struggles on Q2 earnings call

“Negative surprises”: Vornado execs talk retail struggles on Q2 earnings call
Steven Roth, CEO of Vornado and 640 Fifth Avenue (Credit: Getty Images and Vornado Realty Trust)

Bank of China issues $500M to Vornado in refi of 640 Fifth Avenue

Bank of China issues $500M to Vornado in refi of 640 Fifth Avenue
Clockwise from top left: Vornado's Steven Roth, Newmark Knight Frank's Barry Gosin, Redfin's Glenn Kelman, SL Green's Marc Holliday, Marriott's Arne Sorenson, Zillow's Richard Barton, Realogy's Ryan Schneider, and Cushman's Brett White

A real estate earnings call season for the ages

A real estate earnings call season for the ages
Steven Roth (Credit: Bruce Glikas/Getty Images, Vornado)

Vornado might never reopen century-old Hotel Pennsylvania, CEO says

Vornado might never reopen century-old Hotel Pennsylvania, CEO says
 Vornado CEO Steven Roth with 220 Central Park South (left) the Marriott Marquis at 1535 Broadway (Credit: Roth via Taylor Hill/FilmMagic; Vornado; StreetEasy)

Vornado sees “tragic abyss” now, better times ahead

Vornado sees “tragic abyss” now, better times ahead
Pandemic pay cuts: Analysis shows real estate CEOs aren’t giving up much

Pandemic pay cuts: Analysis shows real estate CEOs aren’t giving up much

Pandemic pay cuts: Analysis shows real estate CEOs aren’t giving up much
Vornado Realty Trust’s Steven Roth and 220 Central Park South (Credit: Roth by Bruce Glikas/FilmMagic; Jim.henderson via Wikipedia Commons)

Vornado inks another $52M closing at 220 Central Park South

Vornado inks another $52M closing at 220 Central Park South
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...