Vornado's 650 Madison downgraded by Fitch after Ralph Lauren departure.

Fitch downgraded the security linked to the mortgage at 650 Madison Ave, co-owned by Vornado Realty Trust, due to a 38% drop in rental income and occupancy falling to 82%. The building's fortunes are hitched to Ralph Lauren, an anchor tenant whose lease expires at the end of 2024. Ralph Lauren may further downsize or even vacate 650 Madison next year. The building's loan-to-value ratio has risen to 127% from 106% in 2019, reflecting falling cash flows. Fitch lowered its outlook for US real estate investment trusts to "deteriorating" from "neutral."