Vornado mulls splitting itself up, again Steve Roth said spinoffs of retail, development businesses are possible
Steven Roth and 2 Penn Plaza (Credit: Vornado Realty Trust, Google Maps)
More than a year after spinning off its Washington, D.C., business, Vornado Realty Trust is once again toying with the idea of splitting itself into separate companies.
Steven Roth, CEO of the firm, said it’s possible Vornado will spin off a development company from its income-producing real estate. The rationale: Vornado has several expensive development projects in planning around Penn Stati爱上海 on, and REIT investors tend to dislike the阿拉爱上海同城 uncertainty associated with development.
“Development is not a business that can be measured quarter to quarter,” Roth said. If the stock price continues to trade below asset values because investors don’t like the development risk, Roth said, it “doesn’t make intellectual sense” to not try to change that. He declined to say how exactly the company could be split up, saying these are “glimmers of value creation ideas.”
Forest City Realty Trust, another public REIT, has been grappling with the same 阿爱上海同城 problem and responded by shrinking its developmen爱上海同城对对碰 t business. The former CEO of its New York division, MaryAnne Gilmartin, recently left the firm to found a new development firm, L L MAG.
Roth also said Vornado is considering another split: spi上海贵族宝贝 nning off its retail business.
“The softness of retail is what’s hurting our stock the most,” he sai[……]