VORNADO REALTY TRUST (NYSE: VNO) reported today:
Quarter Ended June 30, 2018
Financial Results
NET INCOME attributable to common shareholders
for the quarter ended June 30, 2018 was $111.5 million, or
$0.58 per diluted share, compared to $116.0 million, or $0.61
per diluted share, for the prior year's quarter. Adjusting
net income attributable to common shareholders for the items that
impact the comparability of period to period net income listed in
the table on the following page, net income attributable to common
shareholders, as adjusted (non-GAAP) for the quarters ended
June 30, 2018 and 2017 was $69.7 million and $67.4 million, or
$0.36 and $0.35 per diluted share, respectively.
FUNDS FROM OPERATIONS ("FFO") attributable to
common shareholders plus assumed conversions (non-GAAP) for the
quarter ended June 30, 2018 was $209.7 million, or $1.10 per
diluted share, compared to $257.7 million, or $1.35 per diluted
share, for the prior year's quarter. Adjusting FFO
attributable to common shareholders plus assumed conversions for
the items that impact the comparability of period to period FFO
listed in the table on page 3, FFO attributable to common
shareholders plus assumed conversions, as adjusted (non-GAAP) for
the quarters ended June 30, 2018 and 2017 was $187.4 million
and $180.5 million, or $0.98 and $0.95 per diluted share,
respectively.
Six Months Ended June 30, 2018 Financial
Results
NET INCOME attributable to common shareholders
for the six months ended June 30, 2018 was $93.7 million, or $0.49
per diluted share, compared to $163.7 million, or $0.86 per
diluted share, for the six months ended June 30, 2017.
Adjusting net income attributable to common shareholders for the
items that impact the comparability of period to period net income
listed in the table on the following page, net income attributable
to common shareholders, as adjusted (non-GAAP) for the six months
ended June 30, 2018 and 2017 was $126.1 million and $113.5 million,
or $0.66 and $0.60 per diluted share, respectively.
FUNDS FROM OPERATIONS ("FFO") attributable to
common shareholders plus assumed conversions (non-GAAP) for the six
months ended June 30, 2018 was $312.3 million, or $1.63 per diluted
share, compared to $463.4 million, or $2.43 per diluted share, for
the six months ended June 30, 2017. Adjusting FFO
attributable to common shareholders plus assumed conversions for
the items that impact the comparability of period to period FFO
listed in the table on page 3, FFO attributable to common
shareholders plus assumed conversions, as adjusted (non-GAAP) for
the six months ended June 30, 2018 and 2017 was $361.4 million and
$339.4 million, or $1.89 and $1.78 per diluted share,
respectively.
The following table reconciles our net income
attributable to common shareholders to net income attributable to
common shareholders, as adjusted (non-GAAP):
| (Amounts in
thousands, except per share amounts) |
For the Three Months Ended June
30, |
|
For the Six Months Ended June
30, |
| |
2018 |
|
2017 |
|
2018 |
|
2017 |
| Net income
attributable to common shareholders |
$ |
111,534 |
|
|
$ |
115,972 |
|
|
$ |
93,693 |
|
|
$ |
163,724 |
|
| Per diluted share |
$ |
0.58 |
|
|
$ |
0.61 |
|
|
$ |
0.49 |
|
|
$ |
0.86 |
|
| |
|
|
|
|
|
|
|
| Certain
(income) expense items that impact net income attributable to
common shareholders: |
|
|
|
|
|
|
|
| Net gains on sale of real estate |
$ |
(24,449 |
) |
|
$ |
(15,339 |
) |
|
$ |
(24,767 |
) |
|
$ |
(19,459 |
) |
| (Increase) decrease in fair value of marketable securities
(including our share of partially owned entities) |
(16,024 |
) |
|
— |
|
|
18,636 |
|
|
— |
|
| Profit participation on the April 2018 sale of 701 Seventh
Avenue |
(5,457 |
) |
|
— |
|
|
(5,457 |
) |
|
— |
|
| Our share of loss from 666 Fifth Avenue Office Condominium
(49.5% interest) |
1,269 |
|
|
7,852 |
|
|
4,761 |
|
|
18,049 |
|
| Our share of (income) loss from real estate fund investments
(excluding our $4,252 share of One Park Avenue potential additional
transfer taxes and reduction in carried interest for the six months
ended June 30, 2018) |
(551 |
) |
|
304 |
|
|
(1,365 |
) |
|
3,539 |
|
| (Income) loss from discontinued operations and sold
properties (primarily related to JBG SMITH Properties operating
results and transaction costs through July 17, 2017 spin-off) |
(286 |
) |
|
(18,251 |
) |
|
83 |
|
|
(31,246 |
) |
| Net gain resulting from Urban Edge Properties operating
partnership unit issuances |
— |
|
|
(15,900 |
) |
|
— |
|
|
(15,900 |
) |
| Net gain on repayment of our Suffolk Downs JV debt
investments |
— |
|
|
(11,373 |
) |
|
— |
|
|
(11,373 |
) |
| Our share of potential additional New York City transfer
taxes based on a Tax Tribunal interpretation which Vornado is
appealing |
— |
|
|
— |
|
|
23,503 |
|
|
— |
|
| Preferred unit issuance costs |
— |
|
|
— |
|
|
14,486 |
|
|
— |
|
| Other |
839 |
|
|
900 |
|
|
4,609 |
|
|
2,864 |
|
| |
(44,659 |
) |
|
(51,807 |
) |
|
34,489 |
|
|
(53,526 |
) |
|
Noncontrolling interests' share of above adjustments |
2,778 |
|
|
3,207 |
|
|
(2,105 |
) |
|
3,314 |
|
| Total of
certain (income) expense items that impact net income attributable
to common shareholders |
$ |
(41,881 |
) |
|
$ |
(48,600 |
) |
|
$ |
32,384 |
|
|
$ |
(50,212 |
) |
| |
|
|
|
|
|
|
|
| Net income
attributable to common shareholders, as adjusted (non-GAAP) |
$ |
69,653 |
|
|
$ |
67,372 |
|
|
$ |
126,077 |
|
|
$ |
113,512 |
|
| Per diluted share (non-GAAP) |
$ |
0.36 |
|
|
$ |
0.35 |
|
|
$ |
0.66 |
|
|
$ |
0.60 |
|
| |
| |
The following table reconciles our FFO attributable to common
shareholders plus assumed conversions (non-GAAP) to FFO
attributable to common shareholders plus assumed conversions, as
adjusted (non-GAAP):
| (Amounts in
thousands, except per share amounts) |
For the Three Months Ended June
30, |
|
For the Six Months Ended June
30, |
| |
2018 |
|
2017 |
|
2018 |
|
2017 |
| FFO
attributable to common shareholders plus assumed conversions
(non-GAAP)(1) |
$ |
209,680 |
|
|
$ |
257,673 |
|
|
$ |
312,339 |
|
|
$ |
463,422 |
|
| Per diluted share (non-GAAP) |
$ |
1.10 |
|
|
$ |
1.35 |
|
|
$ |
1.63 |
|
|
$ |
2.43 |
|
| |
|
|
|
|
|
|
|
| Certain
(income) expense items that impact FFO attributable to common
shareholders plus assumed conversions: |
|
|
|
|
|
|
|
| (Increase) decrease in fair value of marketable securities
(including our share of partially owned entities) |
$ |
(16,024 |
) |
|
$ |
— |
|
|
$ |
18,636 |
|
|
$ |
— |
|
| Profit participation on the April 2018 sale of 701 Seventh
Avenue |
(5,457 |
) |
|
— |
|
|
(5,457 |
) |
|
— |
|
| Our share of FFO from 666 Fifth Avenue Office Condominium
(49.5% interest) |
(2,178 |
) |
|
(4,160 |
) |
|
(2,041 |
) |
|
(7,713 |
) |
| Our share of FFO from real estate fund investments (excluding
our $4,252 share of One Park Avenue potential additional transfer
taxes and reduction in carried interest for the six months ended
June 30, 2018) |
(551 |
) |
|
304 |
|
|
(1,365 |
) |
|
3,539 |
|
| FFO from discontinued operations and sold properties
(primarily related to JBG SMITH Properties operating results and
transaction costs through July 17, 2017 spin-off) |
(374 |
) |
|
(51,561 |
) |
|
(104 |
) |
|
(99,901 |
) |
| Net gain resulting from Urban Edge Properties operating
partnership unit issuances |
— |
|
|
(15,900 |
) |
|
— |
|
|
(15,900 |
) |
| Net gain on repayment of our Suffolk Downs JV debt
investments |
— |
|
|
(11,373 |
) |
|
— |
|
|
(11,373 |
) |
| Our share of potential additional New York City transfer
taxes based on a Tax Tribunal interpretation which Vornado is
appealing |
— |
|
|
— |
|
|
23,503 |
|
|
— |
|
| Preferred unit issuance costs |
— |
|
|
— |
|
|
14,486 |
|
|
— |
|
| Other |
839 |
|
|
379 |
|
|
4,592 |
|
|
(962 |
) |
| |
(23,745 |
) |
|
(82,311 |
) |
|
52,250 |
|
|
(132,310 |
) |
|
Noncontrolling interests' share of above adjustments |
1,477 |
|
|
5,182 |
|
|
(3,212 |
) |
|
8,302 |
|
| Total of
certain (income) expense items that impact FFO attributable to
common shareholders plus assumed conversions, net |
$ |
(22,268 |
) |
|
$ |
(77,129 |
) |
|
$ |
49,038 |
|
|
$ |
(124,008 |
) |
| |
|
|
|
|
|
|
|
| FFO
attributable to common shareholders plus assumed conversions, as
adjusted (non-GAAP) |
$ |
187,412 |
|
|
$ |
180,544 |
|
|
$ |
361,377 |
|
|
$ |
339,414 |
|
| Per diluted share (non-GAAP) |
$ |
0.98 |
|
|
$ |
0.95 |
|
|
$ |
1.89 |
|
|
$ |
1.78 |
|
____________________________________________________________
(1) See page 10 for a reconciliation of our net
income attributable to common shareholders to FFO attributable to
common shareholders plus assumed conversions (non-GAAP) for the
three and six months ended June 30, 2018 and 2017.
Disposition Activity
On June 21, 2018, we completed the $45,000,000
sale of 27 Washington Square North, which resulted in a net gain of
$23,559,000 which is included in "net gains on disposition of
wholly owned and partially owned assets" on our consolidated
statements of income. We acquired the property in December 2015 for
$20,000,000.
Financing Activities
On April 19, 2018, the joint venture between our
Fund (25% owned) and our Crowne Plaza Joint Venture (57.1% owned)
completed a $255,000,000 refinancing of the Crowne Plaza Times
Square Hotel. The interest-only loan is at LIBOR plus 3.51%
(5.56% at June 30, 2018) and matures in May 2020 with three
one-year extension options. In connection therewith, the joint
venture purchased an interest rate cap that caps LIBOR at a rate of
4.00%. The Crowne Plaza Times Square Hotel was previously
encumbered by a $310,000,000 interest-only mortgage at LIBOR plus
2.80% which was scheduled to mature in December 2018.
On June 11, 2018, the joint venture (50.1%
owned) that owns Independence Plaza, a three-building 1,327 unit
residential complex in the Tribeca submarket of Manhattan completed
a $675,000,000 refinancing of Independence Plaza. The seven-year
interest-only loan matures in July 2025 and has a fixed rate of
4.25%. Our share of net proceeds, after repayment of the existing
3.48% $550,000,000 mortgage and closing costs, was $55,618,000.
Second Quarter Leasing Activity:
- 611,000 square feet of New York Office space (545,000 square
feet at share) at an initial rent of $88.28 per square foot and a
weighted average term of 10.5 years. The GAAP and cash
mark-to-markets on the 502,000 square feet of second generation
space were 41.3% and 28.4%, respectively. Tenant improvements and
leasing commissions were $9.63 per square foot per annum, or 10.9%
of initial rent.
- 49,000 square feet of New York Retail space (44,000 square feet
at share) at an initial rent of $165.98 per square foot and a
weighted average term of 5.9 years. The GAAP and cash
mark-to-markets on the 38,000 square feet of second generation
space were 11.6% and 8.7%, respectively. Tenant improvements and
leasing commissions were $18.73 per square foot per annum, or 11.3%
of initial rent.
- 50,000 square feet at theMART (all at share and all second
generation) at an initial rent of $51.66 per square foot and a
weighted average term of 5.4 years. The GAAP and cash
mark-to-markets were 9.4% and 1.6%, respectively. Tenant
improvements and leasing commissions were $1.55 per square foot per
annum, or 3.0% of initial rent.
Same Store Net Operating Income
("NOI"):
The percentage increase (decrease) in same store
NOI at share and same store NOI at share - cash basis of our New
York segment, theMART and 555 California Street are summarized
below.
| |
|
Total |
|
New York(2) |
|
theMART |
|
555CaliforniaStreet |
| Same store NOI at share % increase(1): |
|
|
|
|
|
|
|
| |
Three
months ended June 30, 2018 compared to June 30, 2017 |
4.7 |
% |
|
4.2 |
% |
|
5.2 |
% |
|
13.5 |
% |
| |
Six months
ended June 30, 2018 compared to June 30, 2017 |
4.5 |
% |
|
4.1 |
% |
|
4.3 |
% |
|
12.9 |
% |
| |
Three
months ended June 30, 2018 compared to March 31, 2018 |
3.2 |
% |
|
3.3 |
% |
|
3.4 |
% |
|
1.1 |
% |
| |
|
|
|
|
|
|
|
|
| Same store NOI at share - cash basis %
increase(1): |
|
|
|
|
|
|
|
| |
Three
months ended June 30, 2018 compared to June 30, 2017 |
7.0 |
% |
|
5.9 |
% |
|
10.8 |
% |
|
23.8 |
% |
| |
Six months
ended June 30, 2018 compared to June 30, 2017 |
6.7 |
% |
|
5.8 |
% |
|
10.4 |
% |
|
18.5 |
% |
| |
Three
months ended June 30, 2018 compared to March 31, 2018 |
4.6 |
% |
|
4.6 |
% |
|
2.9 |
% |
|
7.7 |
% |
____________________
| (1 |
)
See pages 12 through 17 for same store NOI at share
and same store NOI at share - cash basis reconciliations. |
|
|
|
|
Increase (Decrease) |
| (2 |
)
Excluding Hotel Pennsylvania - New York same store
NOI at share % increase (decrease): |
|
| |
Three months
ended June 30, 2018 compared to June 30, 2017 |
4.6 |
% |
| |
Six months
ended June 30, 2018 compared to June 30, 2017 |
4.2 |
% |
| |
Three months
ended June 30, 2018 compared to March 31, 2018 |
(0.3 |
)% |
|
|
|
|
| |
Excluding
Hotel Pennsylvania - New York same store NOI at share - cash basis
% increase: |
|
| |
Three months
ended June 30, 2018 compared to June 30, 2017 |
6.3 |
% |
| |
Six months
ended June 30, 2018 compared to June 30, 2017 |
5.8 |
% |
| |
Three months
ended June 30, 2018 compared to March 31, 2018 |
0.7 |
% |
| |
|
|
|
NOI:
The elements of our New York and Other NOI at
share for the three and six months ended June 30, 2018 and 2017 and
the three months ended March 31, 2018 are summarized below.
| |
For the Three Months
Ended |
|
For the Six Months
Ended June 30, |
| (Amounts in
thousands) |
June 30, |
|
March 31,
2018 |
|
| |
2018 |
|
2017 |
|
|
2018 |
|
2017 |
| New
York: |
|
|
|
|
|
|
|
|
|
| Office |
$ |
184,867 |
|
|
$ |
171,809 |
|
|
$ |
187,156 |
|
|
$ |
372,023 |
|
|
$ |
346,533 |
|
| Retail |
87,109 |
|
|
89,955 |
|
|
87,909 |
|
|
175,018 |
|
|
179,003 |
|
| Residential |
6,338 |
|
|
6,191 |
|
|
6,141 |
|
|
12,479 |
|
|
12,469 |
|
| Alexander's |
11,909 |
|
|
11,966 |
|
|
11,575 |
|
|
23,484 |
|
|
23,709 |
|
| Hotel Pennsylvania |
5,644 |
|
|
6,267 |
|
|
(4,185 |
) |
|
1,459 |
|
|
1,629 |
|
| Total New York |
295,867 |
|
|
286,188 |
|
|
288,596 |
|
|
584,463 |
|
|
563,343 |
|
| |
|
|
|
|
|
|
|
|
|
| Other: |
|
|
|
|
|
|
|
|
|
| theMART |
27,816 |
|
|
26,182 |
|
|
26,875 |
|
|
54,691 |
|
|
52,071 |
|
| 555 California Street |
13,660 |
|
|
12,032 |
|
|
13,511 |
|
|
27,171 |
|
|
24,066 |
|
| Other investments |
17,086 |
|
|
21,732 |
|
|
20,054 |
|
|
37,140 |
|
|
43,812 |
|
| Total Other |
58,562 |
|
|
59,946 |
|
|
60,440 |
|
|
119,002 |
|
|
119,949 |
|
| |
|
|
|
|
|
|
|
|
|
| NOI at
share |
$ |
354,429 |
|
|
$ |
346,134 |
|
|
$ |
349,036 |
|
|
$ |
703,465 |
|
|
$ |
683,292 |
|
NOI - Cash Basis:
The elements of our New York and Other NOI at
share - cash basis for the three and six months ended June 30, 2018
and 2017 and the three months ended March 31, 2018 are summarized
below.
| |
For the Three Months
Ended |
|
For the Six Months
Ended June 30, |
| (Amounts in
thousands) |
June 30, |
|
March 31,
2018 |
|
| |
2018 |
|
2017 |
|
|
2018 |
|
2017 |
| New
York: |
|
|
|
|
|
|
|
|
|
| Office |
$ |
180,710 |
|
|
$ |
163,972 |
|
|
$ |
178,199 |
|
|
$ |
358,909 |
|
|
$ |
330,311 |
|
| Retail |
79,139 |
|
|
79,967 |
|
|
79,589 |
|
|
158,728 |
|
|
159,386 |
|
| Residential |
5,463 |
|
|
5,342 |
|
|
5,599 |
|
|
11,062 |
|
|
10,884 |
|
| Alexander's |
12,098 |
|
|
12,311 |
|
|
12,039 |
|
|
24,137 |
|
|
24,399 |
|
| Hotel Pennsylvania |
5,744 |
|
|
6,299 |
|
|
(4,153 |
) |
|
1,591 |
|
|
1,694 |
|
| Total New York |
283,154 |
|
|
267,891 |
|
|
271,273 |
|
|
554,427 |
|
|
526,674 |
|
| |
|
|
|
|
|
|
|
|
|
| Other: |
|
|
|
|
|
|
|
|
|
| theMART |
27,999 |
|
|
24,897 |
|
|
27,079 |
|
|
55,078 |
|
|
49,429 |
|
| 555 California Street |
13,808 |
|
|
11,151 |
|
|
12,826 |
|
|
26,634 |
|
|
22,476 |
|
| Other investments |
16,987 |
|
|
19,720 |
|
|
19,910 |
|
|
36,897 |
|
|
41,757 |
|
| Total Other |
58,794 |
|
|
55,768 |
|
|
59,815 |
|
|
118,609 |
|
|
113,662 |
|
| |
|
|
|
|
|
|
|
|
|
| NOI at
share - cash basis |
$ |
341,948 |
|
|
$ |
323,659 |
|
|
$ |
331,088 |
|
|
$ |
673,036 |
|
|
$ |
640,336 |
|
| |
Development/Redevelopment as of June 30,
2018
| (Amounts in thousands, except square feet) |
| |
|
|
|
|
|
(At Share) |
|
|
|
|
|
|
|
|
|
|
|
Full Quarter Stabilized
Operations |
| |
|
|
|
Property Rentable Sq.
Ft. |
|
Excluding Land Costs |
|
|
|
|
|
|
|
Available for
Occupancy |
|
|
Current Projects: |
|
Segment |
|
|
Incremental Budget |
|
Amount Expended |
|
|
|
% Complete |
|
Start |
|
|
| 220 Central Park South - residential condominiums |
|
Other |
|
397,000 |
|
|
$ |
1,400,000 |
|
|
$ |
1,054,000 |
|
|
(1) |
|
75.3% |
|
Q3 2012 |
|
N/A |
|
N/A |
| Moynihan
Office Building - (50.1% interest)(2) |
|
New York |
|
850,000 |
|
|
400,000 |
|
|
42,503 |
|
|
|
|
10.6% |
|
Q2 2017 |
|
Q3 2020 |
|
Q2 2022 |
| One Penn
Plaza - renovation(3) |
|
New York |
|
2,535,000 |
|
|
200,000 |
|
|
3,939 |
|
|
|
|
2.0% |
|
Q4 2018 |
|
N/A |
|
N/A |
| 61 Ninth
Avenue - office/retail (45.1% interest)(4) |
|
New York |
|
170,000 |
|
|
69,000 |
|
|
55,134 |
|
|
|
|
79.9% |
|
Q1 2016 |
|
Q2 2018 |
|
Q2 2019 |
| 512 West
22nd Street - office/retail (55.0% interest) |
|
New York |
|
173,000 |
|
|
72,000 |
|
|
47,719 |
|
|
(5) |
|
66.3% |
|
Q4 2015 |
|
Q3 2018 |
|
Q1 2020 |
| 345
Montgomery Street (555 California Street (70.0% interest) |
|
Other |
|
64,000 |
|
|
32,000 |
|
|
6,399 |
|
|
(6) |
|
20.0% |
|
Q1 2018 |
|
Q3 2019 |
|
Q3 2020 |
| 606
Broadway - office/retail (50.0% interest) |
|
New York |
|
34,000 |
|
|
30,000 |
|
|
20,866 |
|
|
(7) |
|
69.6% |
|
Q2 2016 |
|
Q4 2018 |
|
Q2 2020 |
| 825 Seventh
Avenue - office (50.0% interest) |
|
New York |
|
165,000 |
|
|
15,000 |
|
|
2,449 |
|
|
|
|
16.3% |
|
Q2 2018 |
|
Q1 2020 |
|
Q1 2021 |
| Total current projects |
|
|
|
|
|
|
|
$ |
1,233,009 |
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Future Opportunities: |
|
Segment |
|
Property Zoning Sq.
Ft. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Penn Plaza
- multiple opportunities office/residential/retail |
|
New York |
|
TBD |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Hotel
Pennsylvania |
|
New York |
|
2,052,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 260
Eleventh Avenue - office(8) |
|
New York |
|
280,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Undeveloped Land: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 29, 31, 33
West 57th Street (50.0% interest) |
|
New York |
|
150,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 527 West
Kinzie, Chicago |
|
Other |
|
330,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total undeveloped land |
|
|
|
480,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
_______________________
(1) Excludes land and acquisition costs of
$515,426.(2) Excludes $115,230 for our share of
the upfront contribution of $230,000. The building and land are
subject to a lease which expires in 2116.(3) The
building is subject to a ground lease which expires in
2098.(4) The building is subject to a ground lease
which expires in 2115.(5) Excludes land and
acquisition costs of $57,000.(6) Excludes land and
building costs of $31,000.(7) Excludes land and
acquisition costs of $22,703.(8) The building is
subject to a ground lease which expires in 2114.
Conference Call and Audio
Webcast
As previously announced, the Company will host a
quarterly earnings conference call and an audio webcast on Tuesday,
July 31, 2018 at 10:00 a.m. Eastern Time (ET). The
conference call can be accessed by dialing 888-771-4371 (domestic)
or 847-585-4405 (international) and indicating to the operator the
passcode 47136894. A telephonic replay of the
conference call will be available from 1:30 p.m. ET on July
31, 2018 through August 30, 2018. To access the
replay, please dial 888-843-7419 and enter the passcode
47136894#. A live webcast of the conference call will be
available on the Company’s website at www.vno.com and an
online playback of the webcast will be available on the website for
90 days following the conference call.
Supplemental Financial
Information
Further details regarding results of operations,
properties and tenants can be accessed at the Company’s website
www.vno.com. Vornado Realty Trust is a fully - integrated
equity real estate investment trust.
Certain statements contained herein may
constitute “forward-looking statements” within the meaning of the
Private Securities Litigation Reform Act of 1995. Such
forward-looking statements involve known and unknown risks,
uncertainties and other factors which may cause the actual results,
performance or achievements of the Company to be materially
different from any future results, performance or achievements
expressed or implied by such forward-looking statements. For
a discussion of factors that could materially affect the outcome of
our forward-looking statements and our future results and financial
condition, see “Risk Factors” in Part I, Item 1A, of our Annual
Report on Form 10-K for the year ended December 31, 2017.
Such factors include, among others, risks associated with the
timing of and costs associated with property improvements,
financing commitments and general competitive factors.
| |
| VORNADO REALTY TRUST |
| CONSOLIDATED BALANCE
SHEETS |
| |
| |
As of |
| (Amounts in
thousands, except unit, share, and per share amounts) |
June 30, 2018 |
|
December 31, 2017 |
| ASSETS |
|
|
|
| Real
estate, at cost: |
|
|
|
| Land |
$ |
3,175,830 |
|
|
$ |
3,143,648 |
|
| Buildings and improvements |
9,969,190 |
|
|
9,898,605 |
|
| Development costs and construction in progress |
1,797,301 |
|
|
1,615,101 |
|
| Leasehold improvements and equipment |
105,625 |
|
|
98,941 |
|
| Total |
15,047,946 |
|
|
14,756,295 |
|
| Less accumulated depreciation and amortization |
(3,035,523 |
) |
|
(2,885,283 |
) |
| Real
estate, net |
12,012,423 |
|
|
11,871,012 |
|
| Cash and
cash equivalents |
1,090,791 |
|
|
1,817,655 |
|
| Restricted
cash |
121,168 |
|
|
97,157 |
|
| Marketable
securities |
165,650 |
|
|
182,752 |
|
| Tenant and
other receivables, net of allowance for doubtful accounts of $3,891
and $5,526 |
65,773 |
|
|
58,700 |
|
| Investments
in partially owned entities |
959,801 |
|
|
1,056,829 |
|
| Real estate
fund investments |
373,039 |
|
|
354,804 |
|
| Receivable
arising from the straight-lining of rents, net of allowance of
$1,798 and $954 |
936,614 |
|
|
926,711 |
|
| Deferred
leasing costs, net of accumulated amortization of $198,100 and
$191,827 |
443,859 |
|
|
403,492 |
|
| Identified
intangible assets, net of accumulated amortization of $163,406 and
$150,837 |
146,370 |
|
|
159,260 |
|
| Assets
related to discontinued operations |
52 |
|
|
1,357 |
|
| Other
assets |
550,543 |
|
|
468,205 |
|
| |
$ |
16,866,083 |
|
|
$ |
17,397,934 |
|
| LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND
EQUITY |
|
|
|
| Mortgages
payable, net |
$ |
8,108,618 |
|
|
$ |
8,137,139 |
|
| Senior
unsecured notes, net |
843,417 |
|
|
843,614 |
|
| Unsecured
term loan, net |
749,494 |
|
|
748,734 |
|
| Unsecured
revolving credit facilities |
80,000 |
|
|
— |
|
| Accounts
payable and accrued expenses |
394,079 |
|
|
415,794 |
|
| Deferred
revenue |
187,934 |
|
|
227,069 |
|
| Deferred
compensation plan |
100,368 |
|
|
109,177 |
|
| Liabilities
related to discontinued operations |
214 |
|
|
3,620 |
|
| Preferred
shares redeemed on January 4 and 11, 2018 |
— |
|
|
455,514 |
|
| Other
liabilities |
520,331 |
|
|
464,635 |
|
| Total liabilities |
10,984,455 |
|
|
11,405,296 |
|
| Commitments
and contingencies |
|
|
|
| Redeemable
noncontrolling interests: |
|
|
|
| Class A units - 12,616,515 and 12,528,899 units
outstanding |
932,613 |
|
|
979,509 |
|
| Series D cumulative redeemable preferred units - 177,101
units outstanding |
5,428 |
|
|
5,428 |
|
| Total redeemable noncontrolling interests |
938,041 |
|
|
984,937 |
|
| Vornado's
shareholders' equity: |
|
|
|
| Preferred shares of beneficial interest: no par value per
share; authorized 110,000,000 shares; issued and outstanding
36,799,573 shares |
891,325 |
|
|
891,988 |
|
| Common shares of beneficial interest: $0.04 par value per
share; authorized 250,000,000 shares; issued and outstanding
190,237,957 and 189,983,858 shares |
7,587 |
|
|
7,577 |
|
| Additional capital |
7,555,993 |
|
|
7,492,658 |
|
| Earnings less than distributions |
(4,206,381 |
) |
|
(4,183,253 |
) |
| Accumulated other comprehensive income |
33,351 |
|
|
128,682 |
|
| Total Vornado shareholders' equity |
4,281,875 |
|
|
4,337,652 |
|
|
Noncontrolling interests in consolidated subsidiaries |
661,712 |
|
|
670,049 |
|
| Total equity |
4,943,587 |
|
|
5,007,701 |
|
| |
$ |
16,866,083 |
|
|
$ |
17,397,934 |
|
| |
| |
| VORNADO REALTY TRUST |
| OPERATING RESULTS |
| |
| (Amounts in
thousands, except per share amounts) |
For the Three Months Ended June
30, |
|
For the Six Months Ended June
30, |
| |
2018 |
|
2017 |
|
2018 |
|
2017 |
|
Revenues |
$ |
541,818 |
|
|
$ |
511,087 |
|
|
$ |
1,078,255 |
|
|
$ |
1,019,145 |
|
| |
|
|
|
|
|
|
|
| Income from
continuing operations |
$ |
104,655 |
|
|
$ |
129,373 |
|
|
$ |
105,300 |
|
|
$ |
187,902 |
|
| Income from
discontinued operations |
683 |
|
|
18,111 |
|
|
320 |
|
|
33,429 |
|
| Net
income |
105,338 |
|
|
147,484 |
|
|
105,620 |
|
|
221,331 |
|
| Less net
loss (income) attributable to noncontrolling interests in: |
|
|
|
|
|
|
|
| Consolidated subsidiaries |
26,175 |
|
|
(7,677 |
) |
|
34,449 |
|
|
(14,414 |
) |
| Operating Partnership |
(7,445 |
) |
|
(7,706 |
) |
|
(6,321 |
) |
|
(10,935 |
) |
| Net income
attributable to Vornado |
124,068 |
|
|
132,101 |
|
|
133,748 |
|
|
195,982 |
|
| Preferred
share dividends |
(12,534 |
) |
|
(16,129 |
) |
|
(25,569 |
) |
|
(32,258 |
) |
| Preferred
share issuance costs |
— |
|
|
— |
|
|
(14,486 |
) |
|
— |
|
| NET
INCOME attributable to common shareholders |
$ |
111,534 |
|
|
$ |
115,972 |
|
|
$ |
93,693 |
|
|
$ |
163,724 |
|
| |
|
|
|
|
|
|
|
|
INCOME PER COMMON SHARE – BASIC: |
|
|
|
|
|
|
|
| Income from continuing operations, net |
$ |
0.59 |
|
|
$ |
0.52 |
|
|
$ |
0.49 |
|
|
$ |
0.70 |
|
| Income from discontinued operations, net |
— |
|
|
0.09 |
|
|
— |
|
|
0.16 |
|
| Net income per common share |
$ |
0.59 |
|
|
$ |
0.61 |
|
|
$ |
0.49 |
|
|
$ |
0.86 |
|
| Weighted average shares outstanding |
190,200 |
|
|
189,395 |
|
|
190,141 |
|
|
189,304 |
|
| |
|
|
|
|
|
|
|
|
INCOME PER COMMON SHARE – DILUTED: |
|
|
|
|
|
|
|
| Income from continuing operations, net |
$ |
0.58 |
|
|
$ |
0.52 |
|
|
$ |
0.49 |
|
|
$ |
0.70 |
|
| Income from discontinued operations, net |
— |
|
|
0.09 |
|
|
— |
|
|
0.16 |
|
| Net income per common share |
$ |
0.58 |
|
|
$ |
0.61 |
|
|
$ |
0.49 |
|
|
$ |
0.86 |
|
| Weighted average shares outstanding |
191,168 |
|
|
190,444 |
|
|
191,190 |
|
|
190,674 |
|
| |
|
|
|
|
|
|
|
| FFO
attributable to common shareholders plus assumed conversions
(non-GAAP) |
$ |
209,680 |
|
|
$ |
257,673 |
|
|
$ |
312,339 |
|
|
$ |
463,422 |
|
| Per diluted share (non-GAAP) |
$ |
1.10 |
|
|
$ |
1.35 |
|
|
$ |
1.63 |
|
|
$ |
2.43 |
|
| |
|
|
|
|
|
|
|
| FFO
attributable to common shareholders plus assumed conversions, as
adjusted (non-GAAP) |
$ |
187,412 |
|
|
$ |
180,544 |
|
|
$ |
361,377 |
|
|
$ |
339,414 |
|
| Per diluted share (non-GAAP) |
$ |
0.98 |
|
|
$ |
0.95 |
|
|
$ |
1.89 |
|
|
$ |
1.78 |
|
| |
|
|
|
|
|
|
|
| Weighted
average shares used in determining FFO per diluted share |
191,168 |
|
|
190,444 |
|
|
191,228 |
|
|
190,450 |
|
| |
VORNADO REALTY
TRUSTNON-GAAP RECONCILIATIONS
The following table reconciles net income
attributable to common shareholders to FFO attributable to common
shareholders plus assumed conversions:
| (Amounts in
thousands, except per share amounts) |
For the Three Months Ended June
30, |
|
For the Six Months Ended June
30, |
| |
2018 |
|
2017 |
|
2018 |
|
2017 |
| Net income
attributable to common shareholders |
$ |
111,534 |
|
|
$ |
115,972 |
|
|
$ |
93,693 |
|
|
$ |
163,724 |
|
| Per diluted share |
$ |
0.58 |
|
|
$ |
0.61 |
|
|
$ |
0.49 |
|
|
$ |
0.86 |
|
| |
|
|
|
|
|
|
|
| FFO
adjustments: |
|
|
|
|
|
|
|
|
Depreciation and amortization of real property |
$ |
103,599 |
|
|
$ |
128,527 |
|
|
$ |
204,009 |
|
|
$ |
258,996 |
|
| Net gains
on sale of real estate |
(24,177 |
) |
|
— |
|
|
(24,177 |
) |
|
(2,267 |
) |
|
Proportionate share of adjustments to equity in net income (loss)
of partially owned entities to arrive at FFO: |
|
|
|
|
|
|
|
| Depreciation and amortization of real property |
25,488 |
|
|
37,682 |
|
|
53,594 |
|
|
76,756 |
|
| Net gains on sale of real estate |
(272 |
) |
|
(15,339 |
) |
|
(577 |
) |
|
(17,192 |
) |
| Real estate impairment losses |
— |
|
|
167 |
|
|
4 |
|
|
3,218 |
|
| |
104,638 |
|
|
151,037 |
|
|
232,853 |
|
|
319,511 |
|
|
Noncontrolling interests' share of above adjustments |
(6,508 |
) |
|
(9,356 |
) |
|
(14,419 |
) |
|
(19,873 |
) |
| FFO
adjustments, net |
$ |
98,130 |
|
|
$ |
141,681 |
|
|
$ |
218,434 |
|
|
$ |
299,638 |
|
| |
|
|
|
|
|
|
|
| FFO
attributable to common shareholders (non-GAAP) |
$ |
209,664 |
|
|
$ |
257,653 |
|
|
$ |
312,127 |
|
|
$ |
463,362 |
|
| Convertible
preferred share dividends |
16 |
|
|
20 |
|
|
32 |
|
|
60 |
|
| Earnings
allocated to Out-Performance Plan units |
— |
|
|
— |
|
|
180 |
|
|
— |
|
| FFO
attributable to common shareholders plus assumed conversions
(non-GAAP) |
$ |
209,680 |
|
|
$ |
257,673 |
|
|
$ |
312,339 |
|
|
$ |
463,422 |
|
| Per diluted share (non-GAAP) |
$ |
1.10 |
|
|
$ |
1.35 |
|
|
$ |
1.63 |
|
|
$ |
2.43 |
|
| |
FFO is computed in accordance with the
definition adopted by the Board of Governors of the National
Association of Real Estate Investment Trusts (“NAREIT”). NAREIT
defines FFO as GAAP net income or loss adjusted to exclude net
gains from sales of depreciated real estate assets, real estate
impairment losses, depreciation and amortization expense from real
estate assets and other specified non-cash items, including the pro
rata share of such adjustments of unconsolidated
subsidiaries. FFO and FFO per diluted share are non-GAAP
financial measures used by management, investors and analysts to
facilitate meaningful comparisons of operating performance between
periods and among our peers because it excludes the effect of real
estate depreciation and amortization and net gains on sales, which
are based on historical costs and implicitly assume that the value
of real estate diminishes predictably over time, rather than
fluctuating based on existing market conditions. FFO does not
represent cash generated from operating activities and is not
necessarily indicative of cash available to fund cash requirements
and should not be considered as an alternative to net income as a
performance measure or cash flow as a liquidity measure. FFO
may not be comparable to similarly titled measures employed by
other companies. A reconciliation of our net income
attributable to common shareholders to FFO attributable to common
shareholders plus assumed conversions is provided above. In
addition to FFO attributable to common shareholders plus assumed
conversions, we also disclose FFO attributable to common
shareholders plus assumed conversions, as adjusted. Although
this non-GAAP measure clearly differs from NAREIT’s definition of
FFO, we believe it provides a meaningful presentation of operating
performance. Reconciliations of FFO attributable to common
shareholders plus assumed conversions to FFO attributable to common
shareholders plus assumed conversions, as adjusted are provided on
page 3 of this press release.
VORNADO REALTY
TRUSTNON-GAAP RECONCILIATIONS -
CONTINUED
Below is a reconciliation of net income to NOI
at share and NOI at share - cash basis for the three and six months
ended June 30, 2018 and 2017 and the three months ended March 31,
2018.
| |
For the Three Months
Ended |
|
For the Six Months
Ended June 30, |
| (Amounts in
thousands) |
June 30, |
|
March 31,
2018 |
|
| |
2018 |
|
2017 |
|
|
2018 |
|
2017 |
| Net
income |
$ |
105,338 |
|
|
$ |
147,484 |
|
|
$ |
282 |
|
|
$ |
105,620 |
|
|
$ |
221,331 |
|
| |
|
|
|
|
|
|
|
|
|
|
Deduct: |
|
|
|
|
|
|
|
|
|
| (Income)
loss from partially owned entities |
(8,757 |
) |
|
(46,021 |
) |
|
9,904 |
|
|
1,147 |
|
|
(47,379 |
) |
| Loss
(income) from real estate fund investments |
28,976 |
|
|
(4,391 |
) |
|
8,807 |
|
|
37,783 |
|
|
(4,659 |
) |
| Interest
and other investment (income) loss, net |
(30,892 |
) |
|
(8,541 |
) |
|
24,384 |
|
|
(6,508 |
) |
|
(15,236 |
) |
| Net gains
on disposition of wholly owned and partially owned assets |
(23,559 |
) |
|
— |
|
|
— |
|
|
(23,559 |
) |
|
(501 |
) |
| (Income)
loss from discontinued operations |
(683 |
) |
|
(18,111 |
) |
|
363 |
|
|
(320 |
) |
|
(33,429 |
) |
| NOI
attributable to noncontrolling interests in consolidated
subsidiaries |
(17,160 |
) |
|
(16,269 |
) |
|
(17,312 |
) |
|
(34,472 |
) |
|
(32,607 |
) |
| |
|
|
|
|
|
|
|
|
|
| Add: |
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization expense |
111,846 |
|
|
105,123 |
|
|
108,686 |
|
|
220,532 |
|
|
210,251 |
|
| General and
administrative expense |
34,427 |
|
|
35,405 |
|
|
42,533 |
|
|
76,960 |
|
|
81,580 |
|
| Transaction
related costs and other |
1,017 |
|
|
260 |
|
|
13,156 |
|
|
14,173 |
|
|
1,012 |
|
| NOI from
partially owned entities |
65,752 |
|
|
67,016 |
|
|
67,513 |
|
|
133,265 |
|
|
133,113 |
|
| Interest
and debt expense |
87,657 |
|
|
84,789 |
|
|
88,166 |
|
|
175,823 |
|
|
167,513 |
|
| Income tax
expense (benefit) |
467 |
|
|
(610 |
) |
|
2,554 |
|
|
3,021 |
|
|
2,303 |
|
| NOI at
share |
354,429 |
|
|
346,134 |
|
|
349,036 |
|
|
703,465 |
|
|
683,292 |
|
| Non-cash
adjustments for straight-line rents, amortization of acquired
below-market leases, net and other |
(12,481 |
) |
|
(22,475 |
) |
|
(17,948 |
) |
|
(30,429 |
) |
|
(42,956 |
) |
| NOI at
share - cash basis |
$ |
341,948 |
|
|
$ |
323,659 |
|
|
$ |
331,088 |
|
|
$ |
673,036 |
|
|
$ |
640,336 |
|
| |
NOI represents total revenues less operating
expenses. We consider NOI to be the primary non-GAAP
financial measure for making decisions and assessing the unlevered
performance of our segments as it relates to the total return on
assets as opposed to the levered return on equity. As properties
are bought and sold based on NOI, we utilize this measure to make
investment decisions as well as to compare the performance of our
assets to that of our peers. NOI should not be considered a
substitute for net income. NOI may not be comparable to similarly
titled measures employed by other companies.
VORNADO REALTY
TRUSTNON-GAAP RECONCILIATIONS -
CONTINUED
Below are reconciliations of NOI at share to
same store NOI at share for our New York segment, theMART, 555
California Street and other investments for the three months ended
June 30, 2018 compared to June 30, 2017.
|
(Amounts in thousands) |
Total |
|
New York |
|
theMART |
|
555CaliforniaStreet |
|
Other |
| NOI at share for the three months ended June 30, 2018 |
$ |
354,429 |
|
|
$ |
295,867 |
|
|
$ |
27,816 |
|
|
$ |
13,660 |
|
|
$ |
17,086 |
|
| |
Less NOI at
share from: |
|
|
|
|
|
|
|
|
|
| |
Acquisitions |
(503 |
) |
|
(439 |
) |
|
(64 |
) |
|
— |
|
|
— |
|
| |
Dispositions |
(310 |
) |
|
(310 |
) |
|
— |
|
|
— |
|
|
— |
|
| |
Development properties placed into and out of service |
(12,794 |
) |
|
(12,794 |
) |
|
— |
|
|
— |
|
|
— |
|
| |
Lease termination income, net of straight-line and FAS 141
write-offs |
1,941 |
|
|
1,984 |
|
|
(43 |
) |
|
— |
|
|
— |
|
| |
Other non-operating income, net |
(17,583 |
) |
|
(497 |
) |
|
— |
|
|
— |
|
|
(17,086 |
) |
| Same store NOI at share for the three months ended June 30,
2018 |
$ |
325,180 |
|
|
$ |
283,811 |
|
|
$ |
27,709 |
|
|
$ |
13,660 |
|
|
$ |
— |
|
| |
|
|
|
|
|
|
|
|
|
| NOI at share for the three months ended June 30, 2017 |
$ |
346,134 |
|
|
$ |
286,188 |
|
|
$ |
26,182 |
|
|
$ |
12,032 |
|
|
$ |
21,732 |
|
| |
Less NOI at
share from: |
|
|
|
|
|
|
|
|
|
| |
Acquisitions |
5 |
|
|
(164 |
) |
|
169 |
|
|
— |
|
|
— |
|
| |
Dispositions |
(406 |
) |
|
(406 |
) |
|
— |
|
|
— |
|
|
— |
|
| |
Development properties placed into and out of service |
(12,329 |
) |
|
(12,329 |
) |
|
— |
|
|
— |
|
|
— |
|
| |
Lease termination income, net of straight-line and FAS 141
write-offs |
(166 |
) |
|
(166 |
) |
|
— |
|
|
— |
|
|
— |
|
| |
Other non-operating income, net |
(22,573 |
) |
|
(841 |
) |
|
— |
|
|
— |
|
|
(21,732 |
) |
| Same store NOI at share for the three months ended June 30,
2017 |
$ |
310,665 |
|
|
$ |
272,282 |
|
|
$ |
26,351 |
|
|
$ |
12,032 |
|
|
$ |
— |
|
| |
|
|
|
|
|
|
|
|
|
| Increase in same store NOI at share for the three months
ended June 30, 2018 compared to June 30, 2017 |
$ |
14,515 |
|
|
$ |
11,529 |
|
|
$ |
1,358 |
|
|
$ |
1,628 |
|
|
$ |
— |
|
| |
|
|
|
|
|
|
|
|
|
|
| % increase in same store NOI at share |
4.7 |
% |
|
4.2 |
% |
(1) |
5.2 |
% |
|
13.5 |
% |
|
— |
% |
____________________(1)
Excluding Hotel Pennsylvania, same store NOI at share increased by
4.6%.
Same store NOI represents NOI from operations
which are owned by us and in service in both the current and prior
year reporting periods. Same store NOI - cash basis is NOI
from operations before straight-line rental income and expense,
amortization of acquired below and above market leases, net and
other non-cash adjustments which are owned by us and in service in
both the current and prior year reporting periods. We present
these non-GAAP measures to (i) facilitate meaningful comparisons of
the operational performance of our properties and segments, (ii)
make decisions on whether to buy, sell or refinance properties, and
(iii) compare the performance of our properties and segments to
those of our peers. Same store NOI and same store NOI - cash
basis should not be considered as an alternative to net income or
cash flow from operations and may not be comparable to similarly
titled measures employed by other companies.
VORNADO REALTY
TRUSTNON-GAAP RECONCILIATIONS -
CONTINUED
Below are reconciliations of NOI at share - cash
basis to same store NOI at share - cash basis for our New York
segment, theMART, 555 California Street and other investments for
the three months ended June 30, 2018 compared to June 30, 2017.
|
(Amounts in thousands) |
Total |
|
New York |
|
theMART |
|
555CaliforniaStreet |
|
Other |
| NOI at share - cash basis for the three months ended June 30,
2018 |
$ |
341,948 |
|
|
$ |
283,154 |
|
|
$ |
27,999 |
|
|
$ |
13,808 |
|
|
$ |
16,987 |
|
| |
Less NOI at
share - cash basis from: |
|
|
|
|
|
|
|
|
|
| |
Acquisitions |
(355 |
) |
|
(291 |
) |
|
(64 |
) |
|
— |
|
|
— |
|
| |
Dispositions |
(242 |
) |
|
(242 |
) |
|
— |
|
|
— |
|
|
— |
|
| |
Development properties placed into and out of service |
(13,686 |
) |
|
(13,686 |
) |
|
— |
|
|
— |
|
|
— |
|
| |
Lease termination income |
(162 |
) |
|
— |
|
|
(162 |
) |
|
— |
|
|
— |
|
| |
Other non-operating income, net |
(17,483 |
) |
|
(496 |
) |
|
— |
|
|
— |
|
|
(16,987 |
) |
| Same store NOI at share - cash basis for the three months
ended June 30, 2018 |
$ |
310,020 |
|
|
$ |
268,439 |
|
|
$ |
27,773 |
|
|
$ |
13,808 |
|
|
$ |
— |
|
| |
|
|
|
|
|
|
|
|
|
|
| NOI at share - cash basis for the three months ended June 30,
2017 |
$ |
323,659 |
|
|
$ |
267,891 |
|
|
$ |
24,897 |
|
|
$ |
11,151 |
|
|
$ |
19,720 |
|
| |
Less NOI at
share - cash basis from: |
|
|
|
|
|
|
|
|
|
| |
Acquisitions |
106 |
|
|
(63 |
) |
|
169 |
|
|
— |
|
|
— |
|
| |
Dispositions |
(297 |
) |
|
(297 |
) |
|
— |
|
|
— |
|
|
— |
|
| |
Development properties placed into and out of service |
(12,340 |
) |
|
(12,340 |
) |
|
— |
|
|
— |
|
|
— |
|
| |
Lease termination income |
(218 |
) |
|
(218 |
) |
|
— |
|
|
— |
|
|
— |
|
| |
Other non-operating income, net |
(21,287 |
) |
|
(1,567 |
) |
|
— |
|
|
— |
|
|
(19,720 |
) |
| Same store NOI at share - cash basis for the three months
ended June 30, 2017 |
$ |
289,623 |
|
|
$ |
253,406 |
|
|
$ |
25,066 |
|
|
$ |
11,151 |
|
|
$ |
— |
|
| |
|
|
|
|
|
|
|
|
|
| Increase in same store NOI at share - cash basis for the
three months ended June 30, 2018 compared to June 30, 2017 |
$ |
20,397 |
|
|
$ |
15,033 |
|
|
$ |
2,707 |
|
|
$ |
2,657 |
|
|
$ |
— |
|
| |
|
|
|
|
|
|
|
|
|
| % increase in same store NOI at share - cash basis |
7.0 |
% |
|
5.9 |
% |
(1) |
10.8 |
% |
|
23.8 |
% |
|
— |
% |
____________________(1) Excluding Hotel
Pennsylvania, same store NOI at share - cash basis increased by
6.3%.
VORNADO REALTY
TRUSTNON-GAAP RECONCILIATIONS -
CONTINUED
Below are reconciliations of NOI at share to
same store NOI at share for our New York segment, theMART, 555
California Street and other investments for the three months ended
June 30, 2018 compared to March 31, 2018.
|
(Amounts in thousands) |
Total |
|
New York |
|
theMART |
|
555CaliforniaStreet |
|
Other |
| NOI at share for the three months ended June 30, 2018 |
$ |
354,429 |
|
|
$ |
295,867 |
|
|
$ |
27,816 |
|
|
$ |
13,660 |
|
|
$ |
17,086 |
|
| |
Less NOI at
share from: |
|
|
|
|
|
|
|
|
|
| |
Acquisitions |
(288 |
) |
|
(224 |
) |
|
(64 |
) |
|
— |
|
|
— |
|
| |
Dispositions |
(310 |
) |
|
(310 |
) |
|
— |
|
|
— |
|
|
— |
|
| |
Development properties placed into and out of service |
(12,794 |
) |
|
(12,794 |
) |
|
— |
|
|
— |
|
|
— |
|
| |
Lease termination income, net of straight-line and FAS 141
write-offs |
1,941 |
|
|
1,984 |
|
|
(43 |
) |
|
— |
|
|
— |
|
| |
Other non-operating income, net |
(17,583 |
) |
|
(497 |
) |
|
— |
|
|
— |
|
|
(17,086 |
) |
| Same store NOI at share for the three months ended June 30,
2018 |
$ |
325,395 |
|
|
$ |
284,026 |
|
|
$ |
27,709 |
|
|
$ |
13,660 |
|
|
$ |
— |
|
| |
|
|
|
|
|
|
|
|
|
| NOI at share for the three months ended March 31, 2018 |
$ |
349,036 |
|
|
$ |
288,596 |
|
|
$ |
26,875 |
|
|
$ |
13,511 |
|
|
$ |
20,054 |
|
| |
Less NOI at
share from: |
|
|
|
|
|
|
|
|
|
| |
Acquisitions |
(206 |
) |
|
(121 |
) |
|
(85 |
) |
|
— |
|
|
— |
|
| |
Dispositions |
(54 |
) |
|
(54 |
) |
|
— |
|
|
— |
|
|
— |
|
| |
Development properties placed into and out of service |
(11,654 |
) |
|
(11,654 |
) |
|
— |
|
|
— |
|
|
— |
|
| |
Lease termination income, net of straight-line and FAS 141
write-offs |
(1,127 |
) |
|
(1,127 |
) |
|
— |
|
|
— |
|
|
— |
|
| |
Other non-operating income, net |
(20,633 |
) |
|
(579 |
) |
|
— |
|
|
— |
|
|
(20,054 |
) |
| Same store NOI at share for the three months ended March 31,
2018 |
$ |
315,362 |
|
|
$ |
275,061 |
|
|
$ |
26,790 |
|
|
$ |
13,511 |
|
|
$ |
— |
|
| |
|
|
|
|
|
|
|
|
|
| Increase in same store NOI at share for the three months
ended June 30, 2018 compared to March 31, 2018 |
$ |
10,033 |
|
|
$ |
8,965 |
|
|
$ |
919 |
|
|
$ |
149 |
|
|
$ |
— |
|
| |
|
|
|
|
|
|
|
|
|
|
| % increase in same store NOI at share |
3.2 |
% |
|
3.3 |
% |
(1) |
3.4 |
% |
|
1.1 |
% |
|
— |
% |
____________________(1) Excluding Hotel
Pennsylvania, same store NOI at share decreased by 0.3%.
VORNADO REALTY
TRUSTNON-GAAP RECONCILIATIONS -
CONTINUED
Below are reconciliations of NOI at share - cash
basis to same store NOI at share - cash basis for our New York
segment, theMART, 555 California Street and other investments for
the three months ended June 30, 2018 compared to March 31,
2018.
|
(Amounts in thousands) |
Total |
|
New York |
|
theMART |
|
555CaliforniaStreet |
|
Other |
| NOI at share - cash basis for the three months ended June 30,
2018 |
$ |
341,948 |
|
|
$ |
283,154 |
|
|
$ |
27,999 |
|
|
$ |
13,808 |
|
|
$ |
16,987 |
|
| |
Less NOI at
share - cash basis from: |
|
|
|
|
|
|
|
|
|
| |
Acquisitions |
(288 |
) |
|
(224 |
) |
|
(64 |
) |
|
— |
|
|
— |
|
| |
Dispositions |
(242 |
) |
|
(242 |
) |
|
— |
|
|
— |
|
|
— |
|
| |
Development properties placed into and out of service |
(13,686 |
) |
|
(13,686 |
) |
|
— |
|
|
— |
|
|
— |
|
| |
Lease termination income |
(162 |
) |
|
— |
|
|
(162 |
) |
|
— |
|
|
— |
|
| |
Other non-operating income, net |
(17,484 |
) |
|
(497 |
) |
|
— |
|
|
— |
|
|
(16,987 |
) |
| Same store NOI at share - cash basis for the three months
ended June 30, 2018 |
$ |
310,086 |
|
|
$ |
268,505 |
|
|
$ |
27,773 |
|
|
$ |
13,808 |
|
|
$ |
— |
|
| |
|
|
|
|
|
|
|
|
|
|
| NOI at share - cash basis for the three months ended March
31, 2018 |
$ |
331,088 |
|
|
$ |
271,273 |
|
|
$ |
27,079 |
|
|
$ |
12,826 |
|
|
$ |
19,910 |
|
| |
Less NOI at
share - cash basis from: |
|
|
|
|
|
|
|
|
|
| |
Acquisitions |
(206 |
) |
|
(121 |
) |
|
(85 |
) |
|
— |
|
|
— |
|
| |
Dispositions |
22 |
|
|
22 |
|
|
— |
|
|
— |
|
|
— |
|
| |
Development properties placed into and out of service |
(12,808 |
) |
|
(12,808 |
) |
|
— |
|
|
— |
|
|
— |
|
| |
Lease termination income |
(1,061 |
) |
|
(1,061 |
) |
|
— |
|
|
— |
|
|
— |
|
| |
Other non-operating income, net |
(20,488 |
) |
|
(578 |
) |
|
— |
|
|
— |
|
|
(19,910 |
) |
| Same store NOI at share - cash basis for the three months
ended March 31, 2018 |
$ |
296,547 |
|
|
$ |
256,727 |
|
|
$ |
26,994 |
|
|
$ |
12,826 |
|
|
$ |
— |
|
| |
|
|
|
|
|
|
|
|
|
| Increase in same store NOI at share - cash basis for the
three months ended June 30, 2018 compared to March 31, 2018 |
$ |
13,539 |
|
|
$ |
11,778 |
|
|
$ |
779 |
|
|
$ |
982 |
|
|
$ |
— |
|
| |
|
|
|
|
|
|
|
|
|
| % increase in same store NOI at share - cash
basis |
4.6 |
% |
|
4.6 |
% |
(1) |
2.9 |
% |
|
7.7 |
% |
|
— |
% |
____________________(1) Excluding Hotel
Pennsylvania, same store NOI at share - cash basis increased by
0.7%.
VORNADO REALTY
TRUSTNON-GAAP RECONCILIATIONS -
CONTINUED
Below are reconciliations of NOI at share to
same store NOI at share for our New York segment, theMART, 555
California Street and other investments for the six months ended
June 30, 2018 compared to June 30, 2017.
|
(Amounts in thousands) |
Total |
|
New York |
|
theMART |
|
555CaliforniaStreet |
|
Other |
| NOI at share for the six months ended June 30, 2018 |
$ |
703,465 |
|
|
$ |
584,463 |
|
|
$ |
54,691 |
|
|
$ |
27,171 |
|
|
$ |
37,140 |
|
| |
Less NOI at
share from: |
|
|
|
|
|
|
|
|
|
| |
Acquisitions |
(938 |
) |
|
(789 |
) |
|
(149 |
) |
|
— |
|
|
— |
|
| |
Dispositions |
(364 |
) |
|
(364 |
) |
|
— |
|
|
— |
|
|
— |
|
| |
Development properties placed into and out of service |
(13,205 |
) |
|
(13,205 |
) |
|
— |
|
|
— |
|
|
— |
|
| |
Lease termination income, net of straight-line and FAS 141
write-offs |
814 |
|
|
857 |
|
|
(43 |
) |
|
— |
|
|
— |
|
| |
Other non-operating income, net |
(38,217 |
) |
|
(1,077 |
) |
|
— |
|
|
— |
|
|
(37,140 |
) |
| Same store NOI at share for the six months ended June 30,
2018 |
$ |
651,555 |
|
|
$ |
569,885 |
|
|
$ |
54,499 |
|
|
$ |
27,171 |
|
|
$ |
— |
|
| |
|
|
|
|
|
|
|
|
|
| NOI at share for the six months ended June 30, 2017 |
$ |
683,292 |
|
|
$ |
563,343 |
|
|
$ |
52,071 |
|
|
$ |
24,066 |
|
|
$ |
43,812 |
|
| |
Less NOI at
share from: |
|
|
|
|
|
|
|
|
|
| |
Acquisitions |
36 |
|
|
(164 |
) |
|
200 |
|
|
— |
|
|
— |
|
| |
Dispositions |
(883 |
) |
|
(883 |
) |
|
— |
|
|
— |
|
|
— |
|
| |
Development properties placed into and out of service |
(12,313 |
) |
|
(12,313 |
) |
|
— |
|
|
— |
|
|
— |
|
| |
Lease termination income, net of straight-line and FAS 141
write-offs |
(825 |
) |
|
(804 |
) |
|
(21 |
) |
|
— |
|
|
— |
|
| |
Other non-operating income, net |
(45,738 |
) |
|
(1,926 |
) |
|
— |
|
|
— |
|
|
(43,812 |
) |
| Same store NOI at share for the six months ended June 30,
2017 |
$ |
623,569 |
|
|
$ |
547,253 |
|
|
$ |
52,250 |
|
|
$ |
24,066 |
|
|
$ |
— |
|
| |
|
|
|
|
|
|
|
|
|
| Increase in same store NOI at share for the six months ended
June 30, 2018 compared to June 30, 2017 |
$ |
27,986 |
|
|
$ |
22,632 |
|
|
$ |
2,249 |
|
|
$ |
3,105 |
|
|
$ |
— |
|
| |
|
|
|
|
|
|
|
|
|
|
| % increase in same store NOI at share |
4.5 |
% |
|
4.1 |
% |
(1) |
4.3 |
% |
|
12.9 |
% |
|
— |
% |
____________________(1) Excluding Hotel
Pennsylvania, same store NOI at share increased by 4.2%.
VORNADO REALTY
TRUSTNON-GAAP RECONCILIATIONS -
CONTINUED
Below are reconciliations of NOI at share - cash
basis to same store NOI at share - cash basis for our New York
segment, theMART, 555 California Street and other investments for
the six months ended June 30, 2018 compared to June 30, 2017.
|
(Amounts in thousands) |
Total |
|
New York |
|
theMART |
|
555CaliforniaStreet |
|
Other |
| NOI at share - cash basis for the six months ended June 30,
2018 |
$ |
673,036 |
|
|
$ |
554,427 |
|
|
$ |
55,078 |
|
|
$ |
26,634 |
|
|
$ |
36,897 |
|
| |
Less NOI at
share - cash basis from: |
|
|
|
|
|
|
|
|
|
| |
Acquisitions |
(639 |
) |
|
(490 |
) |
|
(149 |
) |
|
— |
|
|
— |
|
| |
Dispositions |
(220 |
) |
|
(220 |
) |
|
— |
|
|
— |
|
|
— |
|
| |
Development properties placed into and out of service |
(14,290 |
) |
|
(14,290 |
) |
|
— |
|
|
— |
|
|
— |
|
| |
Lease termination income |
(1,223 |
) |
|
(1,061 |
) |
|
(162 |
) |
|
— |
|
|
— |
|
| |
Other non-operating income, net |
(37,972 |
) |
|
(1,075 |
) |
|
— |
|
|
— |
|
|
(36,897 |
) |
| Same store NOI at share - cash basis for the six months ended
June 30, 2018 |
$ |
618,692 |
|
|
$ |
537,291 |
|
|
$ |
54,767 |
|
|
$ |
26,634 |
|
|
$ |
— |
|
| |
|
|
|
|
|
|
|
|
|
| NOI at share - cash basis for the six months ended June 30,
2017 |
$ |
640,336 |
|
|
$ |
526,674 |
|
|
$ |
49,429 |
|
|
$ |
22,476 |
|
|
$ |
41,757 |
|
| |
Less NOI at
share - cash basis from: |
|
|
|
|
|
|
|
|
|
| |
Acquisitions |
137 |
|
|
(63 |
) |
|
200 |
|
|
— |
|
|
— |
|
| |
Dispositions |
(665 |
) |
|
(665 |
) |
|
— |
|
|
— |
|
|
— |
|
| |
Development properties placed into and out of service |
(12,234 |
) |
|
(12,234 |
) |
|
— |
|
|
— |
|
|
— |
|
| |
Lease termination income |
(3,279 |
) |
|
(3,248 |
) |
|
(31 |
) |
|
— |
|
|
— |
|
| |
Other non-operating income, net |
(44,356 |
) |
|
(2,599 |
) |
|
— |
|
|
— |
|
|
(41,757 |
) |
| Same store NOI at share - cash basis for the six months ended
June 30, 2017 |
$ |
579,939 |
|
|
$ |
507,865 |
|
|
$ |
49,598 |
|
|
$ |
22,476 |
|
|
$ |
— |
|
| |
|
|
|
|
|
|
|
|
|
| Increase in same store NOI at share - cash basis for the six
months ended June 30, 2018 compared to June 30, 2017 |
$ |
38,753 |
|
|
$ |
29,426 |
|
|
$ |
5,169 |
|
|
$ |
4,158 |
|
|
$ |
— |
|
| |
|
|
|
|
|
|
|
|
|
|
| % increase in same store NOI at share - cash basis |
6.7 |
% |
|
5.8 |
% |
(1) |
10.4 |
% |
|
18.5 |
% |
|
— |
% |
____________________(1) Excluding Hotel
Pennsylvania, same store NOI at share increased by 5.8%.
| |
|
|
| CONTACT: |
|
JOSEPH MACNOW |
| |
|
(212) 894-7000 |
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