Based on the aggregated intelligence of 120,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, office REIT Vornado Realty
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
Headquarters |
New York, New York |
Market Cap |
$7.61 billion |
Industry |
Real estate investment trust |
TTM Revenue |
$3.53 billion |
Management |
CEO Steven Roth |
Funds From Operations payout ratio (average last five years and TTM) |
60% and 49.8% |
Competitors |
Boston Properties |
CAPS members bearish on VNO also bearish on |
Simon Property Group |
CAPS members bullish on VNO also bullish on |
General Electric |
Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS. TTM = trailing 12 months.
Over on CAPS, 163 of the 307 members who have rated Vornado -- or 53% -- believe the stock will underperform the S&P 500. These Fools include CAPS All-Star dexion10 and CAPS member Gamma1113.
Just yesterday, dexion10 summed up the bear case with a simple formula: "Commercial REIT in NYC with lots of leverage and falling rents... do the math friends."
In a pitch from last month, Gamma1113 shares that bearishness, writing:
[Vornado] has big exposure to commercial real estate in NYC as well as other large cities. Although we've seen a major decline in residential real estate, the Commercial RE sector has not yet seen much of a decline. I believe that with the recent turmoil in the financial markets and the rising [unemployment], commercial RE in the large cities will experience a major decline in the next 1-2 years. Although [Vornado] has [already] declined significantly from its peak, the valuations are still high and I expect it to decline much further in the coming year or so.
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