LONDON, UK / ACCESSWIRE / January 25, 2018 / Active-Investors has a free review on Vornado Realty Trust (NYSE: VNO) following the Company's announcement that it will begin trading ex-dividend on January 26, 2017. In order to capture the dividend payout, investors must purchase the stock a day prior to the ex-dividend date that is by latest at the end of the trading session on January 25, 2018. Active-Investors has initiated due-diligence on this dividend stock. Register with us for more free research including the one on VNO:

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Dividend Declared

On January 17, 2018, Vornado announced that its Board of Trustees has declared an increased quarterly dividend of $0.63 per share, reflecting a 2018 annual dividend rate of $2.52. The former annual dividend rate, exclusive of Vornado's Washington DC business which was spun-off in July 2017 was $2.34 per share. The dividend will be payable on February 15, 2018, to shareholders of record on January 29, 2018.

Vornado's indicated dividend represents a yield of 3.45% compared to the average dividend yield of 4.23% for the financial sector.

Dividend Insights

Vornado has a dividend payout ratio of 64.6%, which indicates that the Company distributes approximately $65 for every $1.00 earned. The dividend payout ratio reflects how much amount a company is returning to shareholders versus how much money it is keeping on hand to reinvest in growth, to pay off debt, and/or to add to its cash reserves.

According to analysts' estimates, Vornado is forecasted to report earnings of $1.53 per share for the next year compared to the Company's annualized dividend of $2.52 per share. One of the primary reasons for the difference between earnings and annualized dividend is that Vornado is a Real Estate Investment Trust (REIT) which is structured by law to distribute at least 90% of earnings. Moreover, since REITs generate income from owning portfolios of investment real estate, they are likely to have higher depreciation charges.

Since depreciation is a non-cash charge, it does not directly impact the ability of dividend the companies can distribute. For this reason, Fund from Operations (FFO) is calculated by adding depreciation and amortization to earnings and subtracting any gains on sales which then provides a better picture of any company's profitability and capacity to pay and to sustain dividends. For instance, Vornado's net loss attributable to common shareholders for the quarter ended September 30, 2017, was $29.0 million, or $0.15 per diluted share, compared to net income attributable to common shareholders for the quarter ended September 30, 2016, of $66.1 million, or $0.35 per diluted share. The Company's adjusted net income attributable to common shareholders for the quarters ended September 30, 2017, and 2016 were $0.36 and $0.25 per diluted share, respectively.

On the other hand, Vornado's FFO attributable to common shareholders plus assumed conversions for the quarter ended September 30, 2017, was $100.2 million, or $0.52 per diluted share, compared to $225.5 million, or $1.19 per diluted share, for the prior year's same quarter. The Company's adjusted FFO for the quarters ended September 30, 2017, and 2016 was $0.99 and $0.93 per diluted share, respectively. The FFO number indicates that the Company should be able to comfortably cover its dividend payout.

Adjustments Related to Earnings

On January 18, 2018, Vornado announced that its financial results for the quarter ended December 31, 2017, will include $34.8 million of tax expense related to the reduction of its taxable REIT subsidiaries deferred tax assets resulting from a decrease in corporate tax rates under the December 22, 2017 Tax Cuts and Jobs Act; $4.8 million of expense related to the December 13, 2017; prepayment of the Company's $450 million aggregate principal amount of 2.50% senior unsecured notes due 2019; and $1.0 million net loss from other items.

The Company noted that the amounts aggregate to a reduction in income of $0.20 per diluted share, which will be included in Vornado's fourth quarter 2017 net income attributable to common shareholders. On an FFO basis, the above amounts aggregate to a reduction of $0.18 per diluted share, which will be included in total FFO.

Stock Performance Snapshot

January 24, 2018 - At Wednesday's closing bell, Vornado's stock declined 1.02%, ending the trading session at $72.74.

Volume traded for the day: 1.03 million shares.

After yesterday's close, Vornado's market cap was at $13.73 billion.

Price to Earnings (P/E) ratio was at 17.31.

The stock has a dividend yield of 3.46%.

The stock is part of the Financial sector, categorized under the REIT - Diversified industry. This sector was up 0.5% at the end of the session.

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