Resolution Capital Bets on Vornado Realty Trust's Urban Portfolio With $168 Million Buy

Resolution Capital Ltd added 4,084,815 shares of Vornado Realty Trust (NYSE:VNO) in the third quarter, increasing its position by an estimated $168.53 million, according to a November 14, 2025, SEC filing.

What Happened

According to a filing with the Securities and Exchange Commission dated November 14, 2025, Resolution Capital Ltd increased its position in Vornado Realty Trust by 4,084,815 shares in the third quarter. The post-trade position stands at 5,380,978 shares, valued at $218.09 million as of September 30, 2025. The move represents 4.24% of the fund’s $5.14 billion in reportable U.S. equity assets.

What Else to Know

Buy activity brings Vornado Realty Trust to 4.24% of Resolution Capital Ltd’s 13F reportable AUM.

Top holdings after the filing:

• NYSE:WELL: $748,737,384 (14.6% of AUM)
• NYSE:DLR: $508,115,238 (9.9% of AUM)
• NASDAQ:EQIX: $470,611,320 (9.2% of AUM)
• NYSE:VTR: $460,085,634 (9.0% of AUM)
• NYSE:EXR: $397,939,721 (7.7% of AUM)

As of December 05, 2025, shares of Vornado Realty Trust were priced at $34.82, down 22.75% over one year, underperforming the S&P 500 by 37.22 percentage points.

Vornado Realty Trust shares are 23.24% below their 52-week high.

Company Overview

Company Snapshot

• Owns and manages a portfolio of over 23 million square feet of LEED-certified office buildings, primarily in New York City, with additional assets in Chicago and San Francisco.
• Operates as a real estate investment trust (REIT) focused on office properties.
• Leases space to a diverse mix of corporate, financial, and professional services tenants in major urban markets.

Vornado Realty Trust is a leading office-focused REIT with a significant presence in New York City and select assets in other major U.S. cities. The company emphasizes sustainability, managing one of the largest portfolios of energy-efficient office properties in the industry. Vornado's scale and focus on prime urban locations provide a competitive advantage in attracting high-quality tenants and maintaining stable cash flows.

Foolish Take

Resolution Capital, an Australian investment manager, recently disclosed the purchase of more than $168 million worth of Vornado Realty Trust stock. Here's what investors need to know about this transaction.

First, some background on Resolution Capital: The firm's focus is on listed real assets, such as real estate investment trusts (REITs) and infrastructure companies. Resolution relies on proprietary research to identify high-quality assets, then invests for the long term.

Consequently, Resolution's recent purchase is very much in character. Vornado Realty Trust is one of the 50 largest REITs by market cap. Vornado leases office properties in many urban locations, including New York, Chicago, and San Francisco. In turn, it pays a dividend yield of 2.1% to shareholders.

Yet, within the REIT sector, there are other alternatives that retail investors may want to consider. Take the Vanguard Real Estate ETF (VNQ), for example.

The VNQ sports a higher dividend yield of 3.9% -- which could be crucial for income-seeking investors. What's more, it offers diversification within the REIT industry -- spreading risk across many different property types and locations. It also has a better performance history. Shares of VNQ have generated a 10-year compound annual growth rate (CAGR) of 5.4%. Shares of Vornado, on the other hand, have generated a negative CAGR of -4.4% over the last 10 years.

To sum up, Resolution's purchase of Vornado stock is on brand for this global investment manager. However, average investors wishing to gain exposure to the REIT sector may want to consider a Real Estate-focused ETF instead -- such as the VNQ.

Glossary

Reportable AUM: The portion of assets under management that must be disclosed in regulatory filings.
13F: A quarterly SEC filing required from institutional investment managers to disclose their equity holdings.
Dividend yield: The annual dividend payment divided by the stock's current price, expressed as a percentage.
Trailing twelve-month (TTM): The 12-month period ending with the most recent quarterly report.
Annualized dividend yield: The projected yearly dividend payout as a percentage of the current share price.
LEED-certified: Buildings certified for meeting environmental and energy efficiency standards set by the Leadership in Energy and Environmental Design program.
REIT (Real Estate Investment Trust): A company that owns, operates, or finances income-producing real estate and distributes most income as dividends.
Assets under management (AUM): The total market value of investments managed by a fund or investment firm.
Portfolio: A collection of financial assets, such as stocks, bonds, or real estate, held by an investor or fund.
Quarter-over-quarter: A comparison of financial or operational results between one fiscal quarter and the previous quarter.
Top holdings: The largest investments held within a fund, ranked by value or percentage of assets.
52-week high: The highest price at which a security has traded during the past year.

Jake Lerch has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Digital Realty Trust and Equinix. The Motley Fool recommends Extra Space Storage. The Motley Fool has a disclosure policy.