Commercial REIT Vornado stock falls after dividend cut, but yield is still above 6%

Shares of Vornado Realty Trust
VNO,
-1.99%
sank 3.7% in premarket trading Thursday, after the New York-based commercial-focused real estate investment trust slashed its quarterly dividend by 29% to 37.5 cents a share. Based on Wednesday’s closing price, the dividend cut lowers the implied dividend yield to 6.50% from 9.19%, but that’s still well above the yield for the Real Estate Select Sector SPDR ETF
XLRE,
+0.62%
of 3.5%, and nearly four-times the S&P 500’s
SPX,
-0.60%
implied yield of 1.72. Among other office REITs, the dividend yields based on Wednesday’s stock closing prices were 11.82% for Brandywine Realty Trust
BDN,
-0.23%,
5.51% for Boston Properties Inc.
BXP,
+0.13%,
8.73% for SL Green Realty Corp.
SLG,
-1.42%
and 8.48% for Piedmont Office Realty Trust Inc.
PDM,
-0.66%