The business behind the dividend
| Measure | VNO | Median | Formula |
|---|---|---|---|
| Return on equity | 15.1% | 11.7% | Net income ÷ shareholders’ equity |
| Return on capital employed | 11.5% | 10.1% | Operating income ÷ (equity + total debt) |
| Owner earnings | $1.09bn | $632.00m | Net income + depreciation & amortisation − capital expenditure |
| Free cash flow | $961.70m | $746.10m | Operating cash flow − capital expenditure |
| Operating margin | 52.5% | 15.0% | Operating income ÷ revenue |
| Net margin | 50.0% | 10.2% | Net income ÷ revenue |
| Debt to equity | 0.38x | 0.79x | Total debt ÷ shareholders’ equity |
| Interest cover | 2.69x | 4.43x | Operating income ÷ interest expense |
| Current ratio | — | — | Current assets ÷ current liabilities |
| Long-term debt to working capital | — | — | Long-term debt ÷ (current assets − current liabilities) |
| Cash conversion | 1.39x | 1.78x | Operating cash flow ÷ net income |
Not computed here: Current ratio — why a blank is not a zero.
Ten years of it
The same measures, for every year the filings support. One year is a fact; a row is a business.
| Measure | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | Median |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Return on equity | 15.1% | 1.4% | 1.9% | -5.9% | 2.8% | -4.5% | 46.8% | 10.1% | 5.2% | 13.1% | 2.8% |
| Return on capital employed | 11.5% | 0.6% | 0.8% | -4.3% | 2.2% | -5.1% | 40.4% | 9.5% | 10.3% | 7.0% | 2.2% |
| Operating margin | 52.5% | 2.4% | 3.4% | -20.1% | 12.4% | -27.8% | — | 26.9% | 29.2% | 28.9% | 12.4% |
| Net margin | 50.0% | 3.9% | 5.8% | -19.2% | 11.1% | -19.4% | — | 20.8% | 10.9% | 45.3% | 10.9% |
| Debt to equity | 0.38x | 0.50x | 0.47x | 0.44x | 0.41x | 0.28x | 0.26x | 0.37x | 0.37x | 0.19x | 0.37x |
| Cash conversion | 1.39x | 7.64x | 6.14x | — | 4.33x | — | 0.21x | 1.78x | 3.78x | 1.10x | 3.78x |
How it compares in real estate
Among the 46 real estate companies here measured on funds from operations, Vornado Realty Trust pays out less than 45 of them. The median for that group is 65.5%, against this company’s 11.0%.
Closest on funds from operations
- Service Properties Trust (SVC) 23.4%
- Simon Property Group (SPG) 41.1%
- RLJ Lodging Trust (RLJ) 41.9%
- SBA Communications (SBAC) 42.1%
Same sector and same denominator, so the figures are comparable. All 50 in real estate →