Citadel’s Ken Griffin determined to take a 60 p.c stake within the three way partnership that may rework 350 Park Avenue.
Vornado Realty Belief’s Michael Franco on Tuesday mentioned that Griffin wished to speed up the deal timeline, which initially gave him till June 2030 to both take a 60 p.c stake or buy the positioning for $1.4 billion, which means that Vornado and Rudin Administration wouldn’t participate within the improvement.
Griffin selected the previous in December, and thanks to some different amendments to a 2022 settlement, Vornado and Rudin will be capable of purchase an curiosity between 23 p.c and 40 p.c within the three way partnership by July (with Vornado’s stake ranging between 21 and 36 p.c). The earlier phrases referred to as for Vornado to take a 36 p.c curiosity, and Rudin 4 p.c. Demolition for the undertaking is slated to begin in April to make manner for a brand new 2 million-square-foot workplace tower.
“We intend to be a part of this undertaking,” Franco mentioned throughout Vornado’s fourth-quarter earnings name on Tuesday.
Vornado executives additionally indicated that Citadel, the tower’s anchor tenant, might take more room than the beforehand introduced 850,000 sq. ft.
“The Citadel staff remains to be making up their thoughts as to what precisely their necessities are,” Vornado CEO Steve Roth mentioned in response to an analyst’s query. Franco added that the corporate is seeing curiosity from firms with leases anticipated to run out between 2031 and 2033 who’re on the lookout for as little as 50,000 sq. ft.
The companions filed permit applications for the undertaking late final yr, after the Metropolis Council permitted rezoning the positioning.
Vornado executives additionally supplied an replace on different redevelopment tasks. Final month, the true property funding belief acquired 3 East 54th Road for $141 million, with plans to demolish the prevailing workplace constructing on the positioning. Roth mentioned the REIT is contemplating choices for the positioning, however famous that “the placement is superb for resort, workplace and residential makes use of.” Roth repeatedly mentioned he’s “in love” with 623 Fifth Avenue, an office building it purchased for $218 million final yr. The corporate plans to reposition the constructing because the “220 Central Park South of boutique workplace” by the top of 2027.
Funds from operations throughout the fourth quarter have been $110.9 million, or 55 cents per share, in comparison with $122.2 million, or 61 cents per share, throughout the identical interval in 2024. For the yr, FFO was $465 million, or $2.32 per share, up from 2024’s $447 million, or $2.26 per share.
Roth acknowledged that the REIT’s inventory value has been struggling, however mentioned “there’s a big disconnect between our inventory value and the worth of our belongings.” One yr in the past, to the day, Vornado’s inventory value was about $42 per share, however it hasn’t reached above $40 since October, and as of midday on Tuesday, was just under $32.
The REIT’s board licensed a inventory buyback in 2023 and repurchased practically 1.5 million frequent shares in 2025 for $50.9 million, at a mean value of $34.9 per share.
“I’m actually conscious of the latest decline in our inventory and, in actual fact, the decline in all actual property shares,” Roth mentioned. “In our case, the decline was within the face of the very best fundamentals in Manhattan within the final 20 years. Whereas this most certainly represents an incredible shopping for alternative, we’ll proceed with care, trying over our shoulder.”
He mentioned if the disconnect continues, Vornado will “change into extra aggressive.”
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