Citi Wonders How Vornado Realty Trust Will Get its Groove Back
In a recent research report published by Citi, Vornado Realty Trust (NYSE: VNO) hosted a series of investor meetings to reaffirm commitments to simplify the company/enhance communication with investors.
According to Citi, “In our view, this is partly a response to share price underperformance over the last two years. We agree with the strategy and find VNO's valuation attractive relative to large cap/low leverage REIT peers. However, a complexity discount exists and the path to eliminating it seems long. Simplification may take time (years, not months). Also, in our view, Crystal City headwinds do not seem fully reflected in Street estimates yet and we remain ~32c or 6% below for 2012. For these reasons, we maintain our Neutral rating and would be inclined to become more positive on the shares if non-core asset sales accelerate or discount widens further.”
Citi maintains its $81.50 PT on Vornado Realty, which closed yesterday at $86.01.
