Steven Roth, CEO of Vornado Realty Trust, says the REIT has taken to heart the notion that pure-play business strategies are favored by investors. Therefore, the REIT will trim some of its retail center holdings.
This month Vornado Realty Trust CEO Steven Roth said he was considering splitting off the REIT's Washington, D.C., portfolio. Some industry analysts say the properties would be better off staying with Vornado, at least until some of them are updated and stabilized.
Slow-growing gross domestic product and sluggish housing and retail markets are among the economic variables that are difficult to understand and make planning a challenge, said
REIT executives participating in a Bank of America Merrill Lynch 2014 Global Real Estate Conference panel. Panelists included Vornado Realty Trust's Steven Roth, Equity Residential's Sam Zell and Boston Properties' Mort Zuckerman.
Vornado Realty Trust is selling a land parcel in Manhattan's Harlem submarket for $65 million plus brownfield credits. The REIT had planned to build an office tower there. The sale is part of Vornado's strategy to sell off noncore holdings.
As promised by Chairman Steven Roth, Vornado Realty Trust has begun to sell off some of its retail holdings. Cole Real Estate Investments has acquired three properties from Vornado for $23.2 million. The properties total 121,000 square feet.
Vornado Realty Trust CEO Steven Roth said in a letter to shareholders that the firm doesn't get enough respect for recent investments. The deals include opportunistic investments in such companies as McDonald's and Sears Holdings.