Based on the aggregated intelligence of 140,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, office REIT Vornado Realty Trust (NYSE: VNO ) has received the dreaded one-star ranking.
With that in mind, let's take a closer look at Vornado's business and see what CAPS investors are saying about the stock right now.
Vornado facts
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Headquarters
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New York City
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Market Cap
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$12.2 billion
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Industry
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REIT
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Trailing-12-Month Revenue
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$2.64 billion
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Management
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CEO Michael Fascitelli
CFO Joseph Macnow
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Return on Capital (Average, Past 3 Years)
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2.7%
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Cash / Debt
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$2.56 billion / $12.73 billion
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1-Year Return
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30%
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Competitors
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Boston Properties (NYSE: BXP )
Brookfield Properties
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CAPS Members Bearish on VNO Also Bearish on
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Simon Property Group (NYSE: SPG )
Citigroup (NYSE: C )
Goldman Sachs (NYSE: GS )
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CAPS Members Bullish on VNO Also Bullish on
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General Electric (NYSE: GE )
Apple (Nasdaq: AAPL )
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Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.
On CAPS, 58% of the 407 members who have rated Vornado believe the stock will underperform the S&P 500 going forward. These bears include JohnMcCloy and All-Star buccayew, who is ranked in the top 2% of our community.
Less than two months ago, JohnMcCloy warned Fools to stay off Vornado's property:
Incredible cash burn. [Vornado] was just paying [dividends] in stock … diluting. Manhattan real estate is about to have the worst 2 years in its history. I work in Manhattan real estate and I still see the same vacant Vornado spaces I saw 2 years ago. They own 33% of Toys "R" Us. This will end badly.
In a reply pitch from just last week, buccayew expands on commercial REITs as a dangerous way to generate income:
Yeah, commercial real estate trusts are at the brink. What's crazy is everyone knows it and the accounting standards allow them to act like "no problem, we'll pay dividends anyway." And people are buying them thinking, "as long as no one acknowledges the asset devaluation, we will just breeze along". Wow. The Madoff ponzi scheme is nothing close to the coming REIT debacle.
What do you think about Vornado, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. The CAPS community is waiting to hear your opinions. CAPS is 100% free, so get started!
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