Vornado Still Eyes Washington DC Portfolio Spinoff

The Skyline complex has been dragging down Vornado’s DC portfolio performance

WASHINGTON, DC—New York City-based Vornado Realty Trust is, like most REITs, very frustrated with its stock price and discount to net asset value.  The REIT is considering various strategies to close this pricing gap — including a scenario it floated last year: spinning off its Washington DC holdings into a separate REIT, much like it did with its high-barrier Northeastern shopping center assets last year. That company, Urban Edge Properties, is celebrating its first anniversary after a year of solid performance.

It was a great decision, CEO Steven Roth said during the REIT’s earning call last week and in a way, its success illustrates how crazy the market has been with valuations.