VORNADO REALTY TRUST (NYSE: VNO) reported today:
Quarter Ended September 30, 2018
Financial Results
NET INCOME attributable to common shareholders
for the quarter ended September 30, 2018 was $190.6 million,
or $1.00 per diluted share, compared to a loss of $29.0
million, or $0.15 per diluted share, for the prior year's
quarter. Adjusting net income (loss) attributable to common
shareholders for the items that impact the comparability of period
to period net income (loss) listed in the table on page 2, net
income attributable to common shareholders, as adjusted (non-GAAP)
for the quarters ended September 30, 2018 and 2017 was $66.2
million and $73.0 million, or $0.35 and $0.38 per diluted share,
respectively.
FUNDS FROM OPERATIONS ("FFO") attributable to
common shareholders plus assumed conversions (non-GAAP) for the
quarter ended September 30, 2018 was $182.5 million, or $0.95
per diluted share, compared to $100.2 million, or $0.52 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 September 30, 2018 and 2017 was $185.6
million and $185.1 million, or $0.97 and $0.97 per diluted share,
respectively.
Nine Months Ended September 30, 2018
Financial Results
NET INCOME attributable to common shareholders
for the nine months ended September 30, 2018 was $284.3 million, or
$1.49 per diluted share, compared to $134.7 million, or $0.71
per diluted share, for the nine months ended September 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 page 2, net income
attributable to common shareholders, as adjusted (non-GAAP) for the
nine months ended September 30, 2018 and 2017 was $192.9 million
and $187.3 million, or $1.01 and $0.98 per diluted share,
respectively.
FFO attributable to common shareholders plus
assumed conversions (non-GAAP) for the nine months ended September
30, 2018 was $494.9 million, or $2.59 per diluted share, compared
to $564.4 million, or $2.95 per diluted share, for the nine months
ended September 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 nine months
ended September 30, 2018 and 2017 was $547.5 million and $525.5
million, or $2.86 and $2.75 per diluted share, respectively.
The following table reconciles our net income
(loss) 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 September
30, |
|
For the Nine Months Ended September
30, |
|
|
2018 |
|
2017 |
|
2018 |
|
2017 |
| Net income (loss)
attributable to common shareholders |
$ |
190,645 |
|
|
$ |
(29,026 |
) |
|
$ |
284,338 |
|
|
$ |
134,698 |
|
| Per
diluted share |
$ |
1.00 |
|
|
$ |
(0.15 |
) |
|
$ |
1.49 |
|
|
$ |
0.71 |
|
| |
|
|
|
|
|
|
|
| Certain (income)
expense items that impact net income (loss) attributable to common
shareholders: |
|
|
|
|
|
|
|
| Net gain
on sale of our ownership interests in 666 Fifth Avenue Office
Condominium |
$ |
(134,032 |
) |
|
$ |
— |
|
|
$ |
(134,032 |
) |
|
$ |
— |
|
| Net gain
on the repayment of our loan investment in 666 Fifth Avenue Office
Condominium |
(7,308 |
) |
|
— |
|
|
(7,308 |
) |
|
— |
|
| Decrease
in fair value of marketable securities (including our share of
partially owned entities) |
7,966 |
|
|
— |
|
|
26,602 |
|
|
— |
|
| Net gains
on sale of real estate (including our share of partially owned
entities) |
(3,350 |
) |
|
(1,522 |
) |
|
(28,104 |
) |
|
(20,981 |
) |
| Our share
of loss (income) 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 nine months ended
September 30, 2018) |
748 |
|
|
7,794 |
|
|
(617 |
) |
|
11,333 |
|
| Loss from
discontinued operations and sold properties (primarily related to
JBG SMITH Properties operating results and transaction costs
through July 17, 2017 spin-off) |
42 |
|
|
53,739 |
|
|
4,886 |
|
|
40,542 |
|
|
Impairment loss on investment in Pennsylvania Real Estate
Investment Trust ("PREIT") |
— |
|
|
44,465 |
|
|
— |
|
|
44,465 |
|
| Net gain
resulting from Urban Edge Properties ("UE") operating partnership
unit issuances |
— |
|
|
(5,200 |
) |
|
— |
|
|
(21,100 |
) |
| Our share
of potential additional New York City transfer taxes based on a Tax
Tribunal interpretation which Vornado is appealing |
— |
|
|
— |
|
|
23,503 |
|
|
— |
|
| Preferred
share issuance costs |
— |
|
|
— |
|
|
14,486 |
|
|
— |
|
| Net gain
on repayment of our Suffolk Downs JV debt investments |
— |
|
|
— |
|
|
— |
|
|
(11,373 |
) |
|
Other |
3,207 |
|
|
9,515 |
|
|
3,133 |
|
|
13,333 |
|
| |
(132,727 |
) |
|
108,791 |
|
|
(97,451 |
) |
|
56,219 |
|
| Noncontrolling
interests' share of above adjustments |
8,242 |
|
|
(6,767 |
) |
|
6,061 |
|
|
(3,624 |
) |
| Total of certain
(income) expense items that impact net income (loss) attributable
to common shareholders |
$ |
(124,485 |
) |
|
$ |
102,024 |
|
|
$ |
(91,390 |
) |
|
$ |
52,595 |
|
| |
|
|
|
|
|
|
|
| Net income attributable
to common shareholders, as adjusted (non-GAAP) |
$ |
66,160 |
|
|
$ |
72,998 |
|
|
$ |
192,948 |
|
|
$ |
187,293 |
|
| Per
diluted share (non-GAAP) |
$ |
0.35 |
|
|
$ |
0.38 |
|
|
$ |
1.01 |
|
|
$ |
0.98 |
|
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 September
30, |
|
For the Nine Months Ended September
30, |
|
|
2018 |
|
2017 |
|
2018 |
|
2017 |
| FFO attributable to
common shareholders plus assumed conversions
(non-GAAP)(1) |
$ |
182,516 |
|
|
$ |
100,178 |
|
|
$ |
494,941 |
|
|
$ |
564,431 |
|
| Per
diluted share (non-GAAP) |
$ |
0.95 |
|
|
$ |
0.52 |
|
|
$ |
2.59 |
|
|
$ |
2.95 |
|
| |
|
|
|
|
|
|
|
| Certain expense
(income) items that impact FFO attributable to common shareholders
plus assumed conversions: |
|
|
|
|
|
|
|
| Decrease
in fair value of marketable securities (including our share of
partially owned entities) |
$ |
7,966 |
|
|
$ |
— |
|
|
$ |
26,602 |
|
|
$ |
— |
|
| Net gain
on the repayment of our loan investment in 666 Fifth Avenue Office
Condominium |
(7,308 |
) |
|
— |
|
|
(7,308 |
) |
|
— |
|
| FFO from
discontinued operations and sold properties (primarily related to
JBG SMITH Properties operating results and transaction costs
through July 17, 2017 spin-off) |
(1,152 |
) |
|
38,771 |
|
|
(3,297 |
) |
|
(68,843 |
) |
| 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 nine months ended September
30, 2018) |
748 |
|
|
7,794 |
|
|
(617 |
) |
|
11,333 |
|
|
Impairment loss on investment in PREIT |
— |
|
|
44,465 |
|
|
— |
|
|
44,465 |
|
| Net gain
resulting from UE operating partnership unit issuances |
— |
|
|
(5,200 |
) |
|
— |
|
|
(21,100 |
) |
| Our share
of potential additional New York City transfer taxes based on a Tax
Tribunal interpretation which Vornado is appealing |
— |
|
|
— |
|
|
23,503 |
|
|
— |
|
| Preferred
share issuance costs |
— |
|
|
— |
|
|
14,486 |
|
|
— |
|
| Net gain
on repayment of our Suffolk Downs JV debt investments |
— |
|
|
— |
|
|
— |
|
|
(11,373 |
) |
|
Other |
3,071 |
|
|
4,701 |
|
|
2,751 |
|
|
3,986 |
|
| |
3,325 |
|
|
90,531 |
|
|
56,120 |
|
|
(41,532 |
) |
| Noncontrolling
interests' share of above adjustments |
(206 |
) |
|
(5,583 |
) |
|
(3,514 |
) |
|
2,579 |
|
| Total of certain
expense (income) items that impact FFO attributable to common
shareholders plus assumed conversions, net |
$ |
3,119 |
|
|
$ |
84,948 |
|
|
$ |
52,606 |
|
|
$ |
(38,953 |
) |
| |
|
|
|
|
|
|
|
| FFO attributable to
common shareholders plus assumed conversions, as adjusted
(non-GAAP) |
$ |
185,635 |
|
|
$ |
185,126 |
|
|
$ |
547,547 |
|
|
$ |
525,478 |
|
| Per
diluted share (non-GAAP) |
$ |
0.97 |
|
|
$ |
0.97 |
|
|
$ |
2.86 |
|
|
$ |
2.75 |
|
____________________________________________________________
- See page 10 for a reconciliation of our net income (loss)
attributable to common shareholders to FFO attributable to common
shareholders plus assumed conversions (non-GAAP) for the three and
nine months ended September 30, 2018 and 2017.
Acquisition Activity
1535 Broadway
On July 30, 2012, we entered into a lease with
Host Hotels & Resorts, Inc. (NYSE: HST) (“Host”), under which
we redeveloped the retail and signage components of the Marriott
Times Square Hotel. We accounted for this lease as a “capital
lease” and recorded a $240,000,000 capital lease asset and
liability. On September 21, 2018, we acquired the retail
condominium from Host for $442,000,000 (inclusive of the
$240,000,000 capital lease liability). The original lease
transaction provided that we would become the 100% owner through a
put/call arrangement, based on a pre-negotiated formula. This
transaction satisfies the put/call arrangement. Our 100% fee
interest includes 45,000 square feet of retail, the 1,611 seat
Marquis Theater and the largest digital sign in New York with a 330
linear foot, 25,000 square foot display.
Disposition Activity
666 Fifth Avenue Office Condominium
On August 3, 2018, we completed the sale of our
49.5% interests in the 666 Fifth Avenue Office Condominium. We
received net proceeds of $120,000,000 and recognized a financial
statement gain of $134,032,000 which is included in "net gains on
disposition of wholly owned and partially owned assets" on our
consolidated statements of income for the three and nine months
ended September 30, 2018. The gain for tax purposes was
approximately $244,000,000. We continue to own all of the 666 Fifth
Avenue Retail Condominium encompassing the Uniqlo, Tissot and
Hollister stores with 125 linear feet of frontage on Fifth Avenue
between 52nd and 53rd Street.
Concurrently with the sale of our interests, the
existing mortgage loan on the property was repaid and we received
net proceeds of $55,244,000 for the participation we held in the
mortgage loan. We recognized a financial statement gain of
$7,308,000, which is included in "net gains on disposition of
wholly owned and partially owned assets" on our consolidated
statements of income for the three and nine months ended September
30, 2018.
Financing Activities
On August 9, 2018, we completed a $120,000,000
refinancing of 4 Union Square South, a 206,000 square foot
Manhattan retail property. The interest-only loan carries a rate of
LIBOR plus 1.40% (3.50% as of September 30, 2018) and matures in
2025, as extended. The property was previously encumbered by a
$113,000,000 mortgage at LIBOR plus 2.15%, which was scheduled to
mature in 2019.
On October 26, 2018, we extended our
$750,000,000 unsecured term loan from October 2020 to February
2024. The interest rate on the extended unsecured term loan
was lowered from LIBOR plus 1.15% to LIBOR plus 1.00% (3.30% as of
October 26, 2018).
Third Quarter Leasing Activity:
- 312,000 square feet of New York Office space (308,000 square
feet at share) at an initial rent of $67.35 per square foot and a
weighted average term of 9.5 years. The GAAP and cash
mark-to-markets on the 203,000 square feet of second generation
space were positive 26.5% and 11.8%, respectively. Tenant
improvements and leasing commissions were $9.52 per square foot per
annum, or 14.1% of initial rent.
- 104,000 square feet of New York Retail space (99,000 square
feet at share) at an initial rent of $135.05 per square foot and a
weighted average term of 5.7 years. The GAAP and cash
mark-to-markets on the 95,000 square feet of second generation
space were negative 40.0% (resulting from an accounting adjustment
at acquisition of the property in 2015 under which we marked the
rent up to market) and positive 36.3%, respectively. Tenant
improvements and leasing commissions were $3.24 per square foot per
annum, or 2.4% of initial rent.
- 28,000 square feet at theMART (all at share) at an initial rent
of $57.92 per square foot and a weighted average term of 7.4
years. The GAAP and cash mark-to-markets on the 23,000 square
feet of second generation space were positive 14.4% and 1.9%,
respectively. Tenant improvements and leasing commissions were
$2.91 per square foot per annum, or 5.0% of initial rent.
- 160,000 square feet at 555 California Street (112,000 square
feet at share) at an initial rent of $91.16 per square foot and a
weighted average term of 12.1 years. The GAAP and cash
mark-to-markets on the 33,000 square feet of second generation
space were positive 30.4% and 10.4%, respectively. Tenant
improvements and leasing commissions were $8.41 per square foot per
annum, or 9.2% of initial rent.
Same Store Net Operating Income ("NOI")
At Share:
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 |
|
555 California Street |
| Same store
NOI at share % increase (decrease)(1): |
|
|
|
|
|
|
|
| |
Three months ended
September 30, 2018 compared to September 30, 2017 |
0.9 |
% |
|
0.6 |
% |
|
(3.8 |
)% |
|
17.2 |
% |
| |
Nine months ended
September 30, 2018 compared to September 30, 2017 |
3.3 |
% |
|
3.0 |
% |
|
1.6 |
% |
|
14.3 |
% |
| |
Three months ended
September 30, 2018 compared to June 30, 2018 |
(0.4 |
)% |
|
0.6 |
% |
|
(9.8 |
)% |
(3) |
(1.2 |
)% |
| |
|
|
|
|
|
|
|
|
| Same store
NOI at share - cash basis % increase (decrease): |
|
|
|
|
|
|
|
| |
Three months ended
September 30, 2018 compared to September 30, 2017 |
4.3 |
% |
|
3.9 |
% |
|
2.2 |
% |
|
19.9 |
% |
| |
Nine months ended
September 30, 2018 compared to September 30, 2017 |
5.9 |
% |
|
5.2 |
% |
|
7.6 |
% |
|
19.0 |
% |
| |
Three months ended
September 30, 2018 compared to June 30, 2018 |
0.9 |
% |
|
2.0 |
% |
|
(6.7 |
)% |
(3) |
(5.4 |
)% |
____________________
|
(1 |
) |
See pages
12 through 17 for same store NOI at share and same store NOI at
share - cash basis reconciliations. |
|
| |
|
Increase |
|
|
(2 |
) |
Excluding Hotel
Pennsylvania, same store NOI at share % increase: |
|
|
| |
Three
months ended September 30, 2018 compared to September 30, 2017 |
1.0 |
% |
|
| |
Nine months
ended September 30, 2018 compared to September 30, 2017 |
3.1 |
% |
|
| |
Three
months ended September 30, 2018 compared to June 30, 2018 |
1.0 |
% |
|
| |
|
|
|
| |
Excluding
Hotel Pennsylvania, same store NOI at share - cash basis %
increase: |
|
|
| |
Three
months ended September 30, 2018 compared to September 30, 2017 |
4.3 |
% |
|
| |
Nine months
ended September 30, 2018 compared to September 30, 2017 |
5.3 |
% |
|
| |
Three
months ended September 30, 2018 compared to June 30, 2018 |
2.5 |
% |
|
| |
|
|
|
|
(3 |
) |
Excluding
tradeshows which are seasonal, same store NOI at share decreased by
4.4% and same store NOI at share - cash basis decreased by
0.3%. |
NOI At Share:
The elements of our New York and Other NOI at
share for the three and nine months ended September 30, 2018 and
2017 and the three months ended June 30, 2018 are summarized
below.
| (Amounts in
thousands) |
For the Three Months Ended |
|
For the Nine Months Ended |
| |
September 30, |
|
June 30, 2018 |
|
September 30, |
| |
2018 |
|
2017 |
|
|
2018 |
|
2017 |
| New York: |
|
|
|
|
|
|
|
|
|
| Office |
$ |
184,146 |
|
$ |
185,169 |
|
$ |
184,867 |
|
$ |
556,169 |
|
$ |
531,702 |
|
Retail |
92,858 |
|
90,088 |
|
87,109 |
|
267,876 |
|
269,091 |
|
Residential |
5,202 |
|
5,981 |
|
6,338 |
|
17,681 |
|
18,450 |
|
Alexander's |
10,626 |
|
11,937 |
|
11,909 |
|
34,110 |
|
35,646 |
| Hotel
Pennsylvania |
4,496 |
|
5,319 |
|
5,644 |
|
5,955 |
|
6,948 |
| Total New
York |
297,328 |
|
298,494 |
|
295,867 |
|
881,791 |
|
861,837 |
| |
|
|
|
|
|
|
|
|
|
| Other: |
|
|
|
|
|
|
|
|
|
|
theMART |
25,257 |
|
26,019 |
|
27,816 |
|
79,948 |
|
78,090 |
| 555
California Street |
13,515 |
|
11,519 |
|
13,660 |
|
40,686 |
|
35,585 |
| Other
investments |
13,524 |
|
18,202 |
|
17,086 |
|
50,664 |
|
62,014 |
| Total
Other |
52,296 |
|
55,740 |
|
58,562 |
|
171,298 |
|
175,689 |
| |
|
|
|
|
|
|
|
|
|
| NOI at share |
$ |
349,624 |
|
$ |
354,234 |
|
$ |
354,429 |
|
$ |
1,053,089 |
|
$ |
1,037,526 |
|
|
NOI At Share - Cash Basis:
The elements of our New York and Other NOI at
share - cash basis for the three and nine months ended September
30, 2018 and 2017 and the three months ended June 30, 2018 are
summarized below.
| (Amounts in
thousands) |
For the Three Months Ended |
|
For the Nine Months Ended |
| |
September 30, |
|
June 30, 2018 |
|
September 30, |
| |
2018 |
|
2017 |
|
|
2018 |
|
2017 |
| New York: |
|
|
|
|
|
|
|
|
|
| Office |
$ |
181,575 |
|
$ |
172,741 |
|
$ |
180,710 |
|
$ |
540,484 |
|
$ |
503,052 |
|
Retail |
84,976 |
|
81,612 |
|
79,139 |
|
243,704 |
|
240,998 |
|
Residential |
5,358 |
|
5,417 |
|
5,463 |
|
16,420 |
|
16,301 |
|
Alexander's |
11,774 |
|
12,280 |
|
12,098 |
|
35,911 |
|
36,679 |
| Hotel
Pennsylvania |
4,520 |
|
5,352 |
|
5,744 |
|
6,111 |
|
7,046 |
| Total New
York |
288,203 |
|
277,402 |
|
283,154 |
|
842,630 |
|
804,076 |
| |
|
|
|
|
|
|
|
|
|
| Other: |
|
|
|
|
|
|
|
|
|
|
theMART |
26,234 |
|
25,417 |
|
27,999 |
|
81,312 |
|
74,846 |
| 555
California Street |
13,070 |
|
10,889 |
|
13,808 |
|
39,704 |
|
33,365 |
| Other
investments |
13,374 |
|
18,219 |
|
16,987 |
|
50,271 |
|
59,976 |
| Total
Other |
52,678 |
|
54,525 |
|
58,794 |
|
171,287 |
|
168,187 |
| |
|
|
|
|
|
|
|
|
|
| NOI at share - cash
basis |
$ |
340,881 |
|
$ |
331,927 |
|
$ |
341,948 |
|
$ |
1,013,917 |
|
$ |
972,263 |
|
|
Development/Redevelopment as of September 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 |
|
|
$ |
1,123,726 |
|
(1) |
|
80.3 |
% |
|
Q3 2012 |
|
N/A |
|
N/A |
| Moynihan Office
Building - (50.1% interest)(2) |
|
New
York |
|
850,000 |
|
400,000 |
|
|
54,823 |
|
|
|
13.7 |
% |
|
Q2
2017 |
|
Q3
2020 |
|
Q2
2022 |
| One Penn Plaza -
renovation(3) |
|
New
York |
|
2,535,000 |
|
200,000 |
|
|
6,253 |
|
|
|
3.1 |
% |
|
Q4
2018 |
|
N/A |
|
N/A |
| 512 West 22nd Street -
office/retail (55.0% interest) |
|
New
York |
|
173,000 |
|
72,000 |
|
|
50,065 |
|
(4) |
|
69.5 |
% |
|
Q4
2015 |
|
Q4
2018 |
|
Q1
2020 |
| 61 Ninth Avenue -
office/retail (45.1% interest)(5) |
|
New
York |
|
170,000 |
|
69,000 |
|
|
57,970 |
|
|
|
84.0 |
% |
|
Q1
2016 |
|
Q2
2018 |
|
Q2
2019 |
| 345 Montgomery Street
(555 California Street) (70.0% interest) |
|
Other |
|
64,000 |
|
32,000 |
|
|
9,523 |
|
(6) |
|
29.8 |
% |
|
Q1
2018 |
|
Q3
2019 |
|
Q3
2020 |
| 606 Broadway -
office/retail (50.0% interest) |
|
New
York |
|
34,000 |
|
30,000 |
|
|
23,307 |
|
(7) |
|
77.7 |
% |
|
Q2
2016 |
|
Q4
2018 |
|
Q2
2020 |
| 825 Seventh Avenue -
office (50.0% interest) |
|
New
York |
|
165,000 |
|
15,000 |
|
|
3,086 |
|
|
|
20.6 |
% |
|
Q2
2018 |
|
Q1
2020 |
|
Q1
2021 |
| Total
current projects |
|
|
|
|
|
$ |
2,218,000 |
|
|
$ |
1,328,753 |
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| 484, 486 Eighth Avenue
and 265, 267 West 34th Street |
|
New
York |
|
125,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| 527 West Kinzie,
Chicago |
|
Other |
|
330,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total
undeveloped land |
|
|
|
605,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
_______________________
- Excludes land and acquisition costs of $515,426.
- 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.
- The building is subject to a ground lease which expires in
2098.
- Excludes land and acquisition costs of $57,000.
- The building is subject to a ground lease which expires in
2115.
- Excludes land and building costs of $31,000.
- Excludes land and acquisition costs of $22,703.
- 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,
October 30, 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 47604591. A telephonic replay of the conference call
will be available from 1:30 p.m. ET on October 30, 2018
through November 29, 2018. To access the replay, please dial
888-843-7419 and enter the passcode 47604591#. 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 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
TRUSTCONSOLIDATED BALANCE SHEETS
| (Amounts in thousands,
except unit, share, and per share amounts) |
As of |
|
|
September 30, 2018 |
|
December 31, 2017 |
|
ASSETS |
|
|
|
| Real estate, at
cost: |
|
|
|
| Land |
$ |
3,306,264 |
|
|
$ |
3,143,648 |
|
| Buildings
and improvements |
10,083,313 |
|
|
9,898,605 |
|
|
Development costs and construction in progress |
1,579,628 |
|
|
1,615,101 |
|
| Leasehold
improvements and equipment |
106,945 |
|
|
98,941 |
|
|
Total |
15,076,150 |
|
|
14,756,295 |
|
| Less
accumulated depreciation and amortization |
(3,109,361 |
) |
|
(2,885,283 |
) |
| Real estate, net |
11,966,789 |
|
|
11,871,012 |
|
| Cash and cash
equivalents |
772,524 |
|
|
1,817,655 |
|
| Restricted cash |
147,286 |
|
|
97,157 |
|
| Marketable
securities |
157,951 |
|
|
182,752 |
|
| Tenant and other
receivables, net of allowance for doubtful accounts of $3,935 and
$5,526 |
69,796 |
|
|
58,700 |
|
| Investments in
partially owned entities |
909,440 |
|
|
1,056,829 |
|
| Real estate fund
investments |
369,767 |
|
|
354,804 |
|
| 220 Central Park South
condominium units ready for sale |
307,552 |
|
|
— |
|
| Receivable arising from
the straight-lining of rents, net of allowance of $1,705 and
$954 |
937,294 |
|
|
926,711 |
|
| Deferred leasing costs,
net of accumulated amortization of $202,480 and $191,827 |
443,350 |
|
|
403,492 |
|
| Identified intangible
assets, net of accumulated amortization of $167,861 and
$150,837 |
139,994 |
|
|
159,260 |
|
| Assets related to
discontinued operations |
74 |
|
|
1,357 |
|
| Other assets |
456,203 |
|
|
468,205 |
|
| |
$ |
16,678,020 |
|
|
$ |
17,397,934 |
|
|
LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND
EQUITY |
|
|
|
| Mortgages payable,
net |
$ |
8,119,075 |
|
|
$ |
8,137,139 |
|
| Senior unsecured notes,
net |
843,710 |
|
|
843,614 |
|
| Unsecured term loan,
net |
749,874 |
|
|
748,734 |
|
| Unsecured revolving
credit facilities |
80,000 |
|
|
— |
|
| Accounts payable and
accrued expenses |
415,531 |
|
|
415,794 |
|
| Deferred revenue |
176,211 |
|
|
227,069 |
|
| Deferred compensation
plan |
102,281 |
|
|
109,177 |
|
| Liabilities related to
discontinued operations |
205 |
|
|
3,620 |
|
| Preferred shares
redeemed on January 4 and 11, 2018 |
— |
|
|
455,514 |
|
| Other liabilities |
229,042 |
|
|
464,635 |
|
| Total
liabilities |
10,715,929 |
|
|
11,405,296 |
|
| Commitments and
contingencies |
|
|
|
| Redeemable
noncontrolling interests: |
|
|
|
| Class A
units - 12,591,157 and 12,528,899 units outstanding |
919,154 |
|
|
979,509 |
|
| Series D
cumulative redeemable preferred units - 177,101 units
outstanding |
5,428 |
|
|
5,428 |
|
|
Total redeemable noncontrolling interests |
924,582 |
|
|
984,937 |
|
| Vornado's shareholders'
equity: |
|
|
|
| Preferred
shares of beneficial interest: no par value per share; authorized
110,000,000 shares; issued and outstanding 36,798,580 and
36,799,573 shares |
891,294 |
|
|
891,988 |
|
| Common
shares of beneficial interest: $0.04 par value per share;
authorized 250,000,000 shares; issued and outstanding 190,285,799
and 189,983,858 shares |
7,589 |
|
|
7,577 |
|
|
Additional capital |
7,580,463 |
|
|
7,492,658 |
|
| Earnings
less than distributions |
(4,135,602 |
) |
|
(4,183,253 |
) |
|
Accumulated other comprehensive income |
34,173 |
|
|
128,682 |
|
|
Total Vornado shareholders' equity |
4,377,917 |
|
|
4,337,652 |
|
| Noncontrolling
interests in consolidated subsidiaries |
659,592 |
|
|
670,049 |
|
| Total
equity |
5,037,509 |
|
|
5,007,701 |
|
| |
$ |
16,678,020 |
|
|
$ |
17,397,934 |
|
VORNADO REALTY
TRUSTOPERATING RESULTS
| (Amounts in thousands,
except per share amounts) |
For the Three Months Ended September
30, |
|
For the Nine Months Ended September
30, |
| |
2018 |
|
2017 |
|
2018 |
|
2017 |
| Revenues |
$ |
542,048 |
|
|
$ |
528,755 |
|
|
$ |
1,620,303 |
|
|
$ |
1,547,900 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Income from continuing
operations |
$ |
219,101 |
|
|
$ |
37,176 |
|
|
$ |
324,401 |
|
|
$ |
225,078 |
|
| Income (loss) from
discontinued operations |
61 |
|
|
(47,930 |
) |
|
381 |
|
|
(14,501 |
) |
| Net income (loss) |
219,162 |
|
|
(10,754 |
) |
|
324,782 |
|
|
210,577 |
|
| Less net (income) loss
attributable to noncontrolling interests in: |
|
|
|
|
|
|
|
|
Consolidated subsidiaries |
(3,312 |
) |
|
(4,022 |
) |
|
31,137 |
|
|
(18,436 |
) |
| Operating
Partnership |
(12,671 |
) |
|
1,878 |
|
|
(18,992 |
) |
|
(9,057 |
) |
| Net income (loss)
attributable to Vornado |
203,179 |
|
|
(12,898 |
) |
|
336,927 |
|
|
183,084 |
|
| Preferred share
dividends |
(12,534 |
) |
|
(16,128 |
) |
|
(38,103 |
) |
|
(48,386 |
) |
| Preferred share
issuance costs |
— |
|
|
— |
|
|
(14,486 |
) |
|
— |
|
| NET INCOME
(LOSS) attributable to common shareholders |
$ |
190,645 |
|
|
$ |
(29,026 |
) |
|
$ |
284,338 |
|
|
$ |
134,698 |
|
| |
|
|
|
|
|
|
|
| INCOME (LOSS)
PER COMMON SHARE – BASIC: |
|
|
|
|
|
|
|
| Income
from continuing operations, net |
$ |
1.00 |
|
|
$ |
0.09 |
|
|
$ |
1.50 |
|
|
$ |
0.78 |
|
| Loss from
discontinued operations, net |
— |
|
|
(0.24 |
) |
|
— |
|
|
(0.07 |
) |
| Net
income (loss) per common share |
$ |
1.00 |
|
|
$ |
(0.15 |
) |
|
$ |
1.50 |
|
|
$ |
0.71 |
|
| Weighted
average shares outstanding |
190,245 |
|
|
189,593 |
|
|
190,176 |
|
|
189,401 |
|
| |
|
|
|
|
|
|
|
| INCOME (LOSS)
PER COMMON SHARE – DILUTED: |
|
|
|
|
|
|
|
| Income
from continuing operations, net |
$ |
1.00 |
|
|
$ |
0.09 |
|
|
$ |
1.49 |
|
|
$ |
0.78 |
|
| Loss from
discontinued operations, net |
— |
|
|
(0.24 |
) |
|
— |
|
|
(0.07 |
) |
| Net
income (loss) per common share |
$ |
1.00 |
|
|
$ |
(0.15 |
) |
|
$ |
1.49 |
|
|
$ |
0.71 |
|
| Weighted
average shares outstanding |
191,327 |
|
|
190,847 |
|
|
191,292 |
|
|
191,257 |
|
| |
|
|
|
|
|
|
|
| FFO attributable to
common shareholders plus assumed conversions (non-GAAP) |
$ |
182,516 |
|
|
$ |
100,178 |
|
|
$ |
494,941 |
|
|
$ |
564,431 |
|
| Per
diluted share (non-GAAP) |
$ |
0.95 |
|
|
$ |
0.52 |
|
|
$ |
2.59 |
|
|
$ |
2.95 |
|
| |
|
|
|
|
|
|
|
| FFO attributable to
common shareholders plus assumed conversions, as adjusted
(non-GAAP) |
$ |
185,635 |
|
|
$ |
185,126 |
|
|
$ |
547,547 |
|
|
$ |
525,478 |
|
| Per
diluted share (non-GAAP) |
$ |
0.97 |
|
|
$ |
0.97 |
|
|
$ |
2.86 |
|
|
$ |
2.75 |
|
| |
|
|
|
|
|
|
|
| Weighted average shares
used in determining FFO per diluted share |
191,327 |
|
|
190,893 |
|
|
191,292 |
|
|
191,304 |
|
VORNADO REALTY
TRUSTNON-GAAP RECONCILIATIONS
The following table reconciles net income (loss)
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 September
30, |
|
For the Nine Months Ended September
30, |
|
|
2018 |
|
2017 |
|
2018 |
|
2017 |
| Net income (loss)
attributable to common shareholders |
$ |
190,645 |
|
|
$ |
(29,026 |
) |
|
$ |
284,338 |
|
|
$ |
134,698 |
|
| Per
diluted share |
$ |
1.00 |
|
|
$ |
(0.15 |
) |
|
$ |
1.49 |
|
|
$ |
0.71 |
|
| |
|
|
|
|
|
|
|
| FFO adjustments: |
|
|
|
|
|
|
|
| Depreciation and
amortization of real property |
$ |
105,015 |
|
|
$ |
102,953 |
|
|
$ |
309,024 |
|
|
$ |
361,949 |
|
| Net gains on sale of
real estate |
(133,961 |
) |
|
(1,530 |
) |
|
(158,138 |
) |
|
(3,797 |
) |
| Proportionate share of
adjustments to equity in net income (loss) of partially owned
entities to arrive at FFO: |
|
|
|
|
|
|
|
|
Depreciation and amortization of real property |
23,688 |
|
|
31,997 |
|
|
77,282 |
|
|
108,753 |
|
| Net gains
on sale of real estate |
(3,421 |
) |
|
8 |
|
|
(3,998 |
) |
|
(17,184 |
) |
| Real
estate impairment losses |
— |
|
|
4,329 |
|
|
4 |
|
|
7,547 |
|
| |
(8,679 |
) |
|
137,757 |
|
|
224,174 |
|
|
457,268 |
|
| Noncontrolling
interests' share of above adjustments |
535 |
|
|
(8,572 |
) |
|
(13,884 |
) |
|
(28,444 |
) |
| FFO adjustments,
net |
$ |
(8,144 |
) |
|
$ |
129,185 |
|
|
$ |
210,290 |
|
|
$ |
428,824 |
|
| |
|
|
|
|
|
|
|
| FFO attributable to
common shareholders (non-GAAP) |
$ |
182,501 |
|
|
$ |
100,159 |
|
|
$ |
494,628 |
|
|
$ |
563,522 |
|
| Convertible preferred
share dividends |
15 |
|
|
19 |
|
|
47 |
|
|
59 |
|
| Earnings allocated to
Out-Performance Plan units |
— |
|
|
— |
|
|
266 |
|
|
850 |
|
| FFO attributable to
common shareholders plus assumed conversions (non-GAAP) |
$ |
182,516 |
|
|
$ |
100,178 |
|
|
$ |
494,941 |
|
|
$ |
564,431 |
|
| Per
diluted share (non-GAAP) |
$ |
0.95 |
|
|
$ |
0.52 |
|
|
$ |
2.59 |
|
|
$ |
2.95 |
|
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 nine
months ended September 30, 2018 and 2017 and the three months ended
June 30, 2018.
| |
For the Three Months Ended |
|
For the Nine Months Ended |
| (Amounts in
thousands) |
September 30, |
|
June 30, 2018 |
|
September 30, |
| |
2018 |
|
2017 |
|
|
2018 |
|
2017 |
| Net income (loss) |
$ |
219,162 |
|
|
$ |
(10,754 |
) |
|
$ |
105,338 |
|
|
$ |
324,782 |
|
|
$ |
210,577 |
|
| |
|
|
|
|
|
|
|
|
|
| Deduct: |
|
|
|
|
|
|
|
|
|
| (Income) loss from
partially owned entities |
(7,206 |
) |
|
41,801 |
|
|
(8,757 |
) |
|
(6,059 |
) |
|
(5,578 |
|
| Loss from real estate
fund investments |
190 |
|
|
6,308 |
|
|
28,976 |
|
|
37,973 |
|
|
1,649 |
|
| Interest and other
investment income, net |
(2,893 |
) |
|
(7,331 |
) |
|
(30,892 |
) |
|
(9,401 |
) |
|
(22,567 |
|
| Net gains on
disposition of wholly owned and partially owned assets |
(141,269 |
) |
|
— |
|
|
(23,559 |
) |
|
(164,828 |
) |
|
(501 |
|
| (Income) loss from
discontinued operations |
(61 |
) |
|
47,930 |
|
|
(683 |
) |
|
(381 |
) |
|
14,501 |
|
| NOI attributable to
noncontrolling interests in consolidated subsidiaries |
(16,943 |
) |
|
(16,171 |
) |
|
(17,160 |
) |
|
(51,415 |
) |
|
(48,778 |
|
| |
|
|
|
|
|
|
|
|
|
| Add: |
|
|
|
|
|
|
|
|
|
| Depreciation and
amortization expense |
113,169 |
|
|
104,972 |
|
|
111,846 |
|
|
333,701 |
|
|
315,223 |
|
| General and
administrative expense |
31,977 |
|
|
34,286 |
|
|
34,427 |
|
|
108,937 |
|
|
115,866 |
|
| Transaction related
costs and other |
2,510 |
|
|
61 |
|
|
1,017 |
|
|
16,683 |
|
|
1,073 |
|
| Our share of NOI from
partially owned entities |
60,094 |
|
|
66,876 |
|
|
65,752 |
|
|
193,359 |
|
|
199,989 |
|
| Interest and debt
expense |
88,951 |
|
|
85,068 |
|
|
87,657 |
|
|
264,774 |
|
|
252,581 |
|
| Income tax expense |
1,943 |
|
|
1,188 |
|
|
467 |
|
|
4,964 |
|
|
3,491 |
|
| NOI at share |
349,624 |
|
|
354,234 |
|
|
354,429 |
|
|
1,053,089 |
|
|
1,037,526 |
|
| Non-cash adjustments
for straight-line rents, amortization of acquired below-market
leases, net and other |
(8,743 |
) |
|
(22,307 |
) |
|
(12,481 |
) |
|
(39,172 |
) |
|
(65,263 |
|
| NOI at share - cash
basis |
$ |
340,881 |
|
|
$ |
331,927 |
|
|
$ |
341,948 |
|
|
$ |
1,013,917 |
|
|
$ |
972,263 |
|
|
|
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
September 30, 2018 compared to September 30, 2017.
| (Amounts in
thousands) |
Total |
|
New York |
|
theMART |
|
555 California Street |
|
Other |
| |
NOI at share for the
three months ended September 30, 2018 |
$ |
349,624 |
|
|
$ |
297,328 |
|
|
$ |
25,257 |
|
|
$ |
13,515 |
|
|
$ |
13,524 |
|
| |
Less NOI at share
from: |
|
|
|
|
|
|
|
|
|
| |
Acquisitions |
(260 |
) |
|
(260 |
) |
|
— |
|
|
— |
|
|
— |
|
| |
Development properties |
(12,655 |
) |
|
(12,641 |
) |
|
— |
|
|
(14 |
) |
|
— |
|
| |
Lease
termination income, net of write-offs of straight-line receivables
and acquired below-market leases, net |
1,581 |
|
|
1,800 |
|
|
(219 |
) |
|
— |
|
|
— |
|
| |
Other
non-operating income, net |
(14,102 |
) |
|
(578 |
) |
|
— |
|
|
— |
|
|
(13,524 |
) |
| Same store
NOI at share for the three months ended September 30, 2018 |
$ |
324,188 |
|
|
$ |
285,649 |
|
|
$ |
25,038 |
|
|
$ |
13,501 |
|
|
$ |
— |
|
| |
|
|
|
|
|
|
|
|
|
| NOI at
share for the three months ended September 30, 2017 |
$ |
354,234 |
|
|
$ |
298,494 |
|
|
$ |
26,019 |
|
|
$ |
11,519 |
|
|
$ |
18,202 |
|
| |
Less NOI at share
from: |
|
|
|
|
|
|
|
|
|
| |
Dispositions |
(232 |
) |
|
(232 |
) |
|
— |
|
|
— |
|
|
— |
|
| |
Development properties |
(12,598 |
) |
|
(12,598 |
) |
|
— |
|
|
— |
|
|
— |
|
| |
Lease
termination income, net of write-offs of straight-line receivables
and acquired below-market leases, net |
(1,169 |
) |
|
(1,169 |
) |
|
— |
|
|
— |
|
|
— |
|
| |
Other
non-operating income, net |
(18,874 |
) |
|
(672 |
) |
|
— |
|
|
— |
|
|
(18,202 |
) |
| Same store
NOI at share for the three months ended September 30, 2017 |
$ |
321,361 |
|
|
$ |
283,823 |
|
|
$ |
26,019 |
|
|
$ |
11,519 |
|
|
$ |
— |
|
| |
|
|
|
|
|
|
|
|
|
| Increase
(decrease) in same store NOI at share for the three months ended
September 30, 2018 compared to September 30, 2017 |
$ |
2,827 |
|
|
$ |
1,826 |
|
|
$ |
(981 |
) |
|
$ |
1,982 |
|
|
$ |
— |
|
| |
|
|
|
|
|
|
|
|
|
|
| % increase
(decrease) in same store NOI at share |
0.9 |
% |
|
0.6 |
% |
(1) |
(3.8 |
)% |
|
17.2 |
% |
|
— |
% |
____________________
- Excluding Hotel Pennsylvania, same store NOI at share increased
by 1.0%.
Same store NOI at share represents NOI at share
from property operations which are owned by us and in service in
both the current and prior year reporting periods. Same store
NOI at share - cash basis is NOI at share 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 at share and same store NOI at share -
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 September 30, 2018 compared to September 30,
2017.
| (Amounts in
thousands) |
Total |
|
New York |
|
theMART |
|
555 California Street |
|
Other |
| |
NOI at share - cash
basis for the three months ended September 30, 2018 |
$ |
340,881 |
|
|
$ |
288,203 |
|
|
$ |
26,234 |
|
|
$ |
13,070 |
|
|
$ |
13,374 |
|
| |
Less NOI at share -
cash basis from: |
|
|
|
|
|
|
|
|
|
| |
Acquisitions |
(259 |
) |
|
(259 |
) |
|
— |
|
|
— |
|
|
— |
|
| |
Development properties |
(13,433 |
) |
|
(13,419 |
) |
|
— |
|
|
(14 |
) |
|
— |
|
| |
Lease
termination income |
(318 |
) |
|
(58 |
) |
|
(260 |
) |
|
— |
|
|
— |
|
| |
Other
non-operating income, net |
(13,954 |
) |
|
(580 |
) |
|
— |
|
|
— |
|
|
(13,374 |
) |
| Same store
NOI at share - cash basis for the three months ended September 30,
2018 |
$ |
312,917 |
|
|
$ |
273,887 |
|
|
$ |
25,974 |
|
|
$ |
13,056 |
|
|
$ |
— |
|
| |
|
|
|
|
|
|
|
|
|
|
| NOI at
share - cash basis for the three months ended September 30,
2017 |
$ |
331,927 |
|
|
$ |
277,402 |
|
|
$ |
25,417 |
|
|
$ |
10,889 |
|
|
$ |
18,219 |
|
| |
Less NOI at share -
cash basis from: |
|
|
|
|
|
|
|
|
|
| |
Dispositions |
(115 |
) |
|
(115 |
) |
|
— |
|
|
— |
|
|
— |
|
| |
Development properties |
(12,674 |
) |
|
(12,674 |
) |
|
— |
|
|
— |
|
|
— |
|
| |
Lease
termination income |
(285 |
) |
|
(285 |
) |
|
— |
|
|
— |
|
|
— |
|
| |
Other
non-operating income, net |
(18,936 |
) |
|
(717 |
) |
|
— |
|
|
— |
|
|
(18,219 |
) |
| Same store
NOI at share - cash basis for the three months ended September 30,
2017 |
$ |
299,917 |
|
|
$ |
263,611 |
|
|
$ |
25,417 |
|
|
$ |
10,889 |
|
|
$ |
— |
|
| |
|
|
|
|
|
|
|
|
|
| Increase in
same store NOI at share - cash basis for the three months ended
September 30, 2018 compared to September 30, 2017 |
$ |
13,000 |
|
|
$ |
10,276 |
|
|
$ |
557 |
|
|
$ |
2,167 |
|
|
$ |
— |
|
| |
|
|
|
|
|
|
|
|
|
| % increase
in same store NOI at share - cash basis |
4.3 |
% |
|
3.9 |
% |
(1) |
2.2 |
% |
|
19.9 |
% |
|
— |
% |
____________________
- Excluding Hotel Pennsylvania, same store NOI at share - cash
basis increased by 4.3%.
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
September 30, 2018 compared to June 30, 2018.
| (Amounts in
thousands) |
Total |
|
New York |
|
theMART |
|
555 California Street |
|
Other |
| |
NOI at share for the
three months ended September 30, 2018 |
$ |
349,624 |
|
|
$ |
297,328 |
|
|
$ |
25,257 |
|
|
$ |
13,515 |
|
|
$ |
13,524 |
|
| |
Less NOI at share
from: |
|
|
|
|
|
|
|
|
|
| |
Acquisitions |
(63 |
) |
|
(63 |
) |
|
— |
|
|
— |
|
|
— |
|
| |
Development properties |
(12,655 |
) |
|
(12,641 |
) |
|
— |
|
|
(14 |
) |
|
— |
|
| |
Lease
termination income, net of write-offs of straight-line receivables
and acquired below-market leases, net |
1,582 |
|
|
1,800 |
|
|
(218 |
) |
|
— |
|
|
— |
|
| |
Other
non-operating income, net |
(14,103 |
) |
|
(579 |
) |
|
— |
|
|
— |
|
|
(13,524 |
) |
| Same store
NOI at share for the three months ended September 30, 2018 |
$ |
324,385 |
|
|
$ |
285,845 |
|
|
$ |
25,039 |
|
|
$ |
13,501 |
|
|
$ |
— |
|
| |
|
|
|
|
|
|
|
|
|
| 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 |
(3 |
) |
|
(3 |
) |
|
— |
|
|
— |
|
|
— |
|
| |
Dispositions |
(309 |
) |
|
(309 |
) |
|
— |
|
|
— |
|
|
— |
|
| |
Development properties |
(12,795 |
) |
|
(12,795 |
) |
|
— |
|
|
— |
|
|
— |
|
| |
Lease
termination income, net of write-offs of straight-line receivables
and acquired below-market leases, net |
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 |
$ |
325,680 |
|
|
$ |
284,247 |
|
|
$ |
27,773 |
|
|
$ |
13,660 |
|
|
$ |
— |
|
| |
|
|
|
|
|
|
|
|
|
| (Decrease)
increase in same store NOI at share for the three months ended
September 30, 2018 compared to June 30, 2018 |
$ |
(1,295 |
) |
|
$ |
1,598 |
|
|
$ |
(2,734 |
) |
|
$ |
(159 |
) |
|
$ |
— |
|
| |
|
|
|
|
|
|
|
|
|
|
| %
(decrease) increase in same store NOI at share |
(0.4 |
)% |
|
0.6 |
% |
(1) |
(9.8 |
)% |
(2) |
(1.2 |
)% |
|
— |
% |
____________________
- Excluding Hotel Pennsylvania, same store NOI at share increased
by 1.0%.
- Excluding tradeshows which are seasonal, same store NOI at
share decreased by 4.4%.
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 September 30, 2018 compared to June 30,
2018.
| (Amounts in
thousands) |
Total |
|
New York |
|
theMART |
|
555 California Street |
|
Other |
| |
NOI at share - cash
basis for the three months ended September 30, 2018 |
$ |
340,881 |
|
|
$ |
288,203 |
|
|
$ |
26,234 |
|
|
$ |
13,070 |
|
|
$ |
13,374 |
|
| |
Less NOI at share -
cash basis from: |
|
|
|
|
|
|
|
|
|
| |
Acquisitions |
(63 |
) |
|
(63 |
) |
|
— |
|
|
— |
|
|
— |
|
| |
Development properties |
(13,433 |
) |
|
(13,419 |
) |
|
— |
|
|
(14 |
) |
|
— |
|
| |
Lease
termination income |
(318 |
) |
|
(58 |
) |
|
(260 |
) |
|
— |
|
|
— |
|
| |
Other
non-operating income, net |
(13,953 |
) |
|
(579 |
) |
|
— |
|
|
— |
|
|
(13,374 |
) |
| Same store
NOI at share - cash basis for the three months ended September 30,
2018 |
$ |
313,114 |
|
|
$ |
274,084 |
|
|
$ |
25,974 |
|
|
$ |
13,056 |
|
|
$ |
— |
|
| |
|
|
|
|
|
|
|
|
|
|
| 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 |
(3 |
) |
|
(3 |
) |
|
— |
|
|
— |
|
|
— |
|
| |
Dispositions |
(241 |
) |
|
(241 |
) |
|
— |
|
|
— |
|
|
— |
|
| |
Development properties |
(13,688 |
) |
|
(13,688 |
) |
|
— |
|
|
— |
|
|
— |
|
| |
Lease
termination income |
(162 |
) |
|
— |
|
|
(162 |
) |
|
— |
|
|
— |
|
| |
Other
non-operating income, net |
(17,481 |
) |
|
(494 |
) |
|
— |
|
|
— |
|
|
(16,987 |
) |
| Same store
NOI at share - cash basis for the three months ended June 30,
2018 |
$ |
310,373 |
|
|
$ |
268,728 |
|
|
$ |
27,837 |
|
|
$ |
13,808 |
|
|
$ |
— |
|
| |
|
|
|
|
|
|
|
|
|
| Increase
(decrease) in same store NOI at share - cash basis for the three
months ended September 30, 2018 compared to June 30, 2018 |
$ |
2,741 |
|
|
$ |
5,356 |
|
|
$ |
(1,863 |
) |
|
$ |
(752 |
) |
|
$ |
— |
|
| |
|
|
|
|
|
|
|
|
|
| % increase
(decrease) in same store NOI at share - cash basis |
0.9 |
% |
|
2.0 |
% |
(1) |
(6.7 |
)% |
(2) |
(5.4 |
)% |
|
— |
% |
____________________
- Excluding Hotel Pennsylvania, same store NOI at share - cash
basis increased by 2.5%.
- Excluding tradeshows which are seasonal, same store NOI at
share - cash basis decreased by 0.3%.
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 nine months ended
September 30, 2018 compared to September 30, 2017.
| (Amounts in
thousands) |
Total |
|
New York |
|
theMART |
|
555 California Street |
|
Other |
| |
NOI at share for the
nine months ended September 30, 2018 |
$ |
1,053,089 |
|
|
$ |
881,791 |
|
|
$ |
79,948 |
|
|
$ |
40,686 |
|
|
$ |
50,664 |
|
| |
Less NOI at share
from: |
|
|
|
|
|
|
|
|
|
| |
Acquisitions |
(1,198 |
) |
|
(1,049 |
) |
|
(149 |
) |
|
— |
|
|
— |
|
| |
Dispositions |
(370 |
) |
|
(370 |
) |
|
— |
|
|
— |
|
|
— |
|
| |
Development properties |
(25,854 |
) |
|
(25,840 |
) |
|
— |
|
|
(14 |
) |
|
— |
|
| |
Lease
termination income, net of write-offs of straight-line receivables
and acquired below-market leases, net |
2,396 |
|
|
2,657 |
|
|
(261 |
) |
|
— |
|
|
— |
|
| |
Other
non-operating income, net |
(52,319 |
) |
|
(1,655 |
) |
|
— |
|
|
— |
|
|
(50,664 |
) |
| Same store
NOI at share for the nine months ended September 30, 2018 |
$ |
975,744 |
|
|
$ |
855,534 |
|
|
$ |
79,538 |
|
|
$ |
40,672 |
|
|
$ |
— |
|
| |
|
|
|
|
|
|
|
|
|
| NOI at
share for the nine months ended September 30, 2017 |
$ |
1,037,526 |
|
|
$ |
861,837 |
|
|
$ |
78,090 |
|
|
$ |
35,585 |
|
|
$ |
62,014 |
|
| |
Less NOI at share
from: |
|
|
|
|
|
|
|
|
|
| |
Acquisitions |
36 |
|
|
(164 |
) |
|
200 |
|
|
— |
|
|
— |
|
| |
Dispositions |
(1,509 |
) |
|
(1,509 |
) |
|
— |
|
|
— |
|
|
— |
|
| |
Development properties |
(24,518 |
) |
|
(24,518 |
) |
|
— |
|
|
— |
|
|
— |
|
| |
Lease
termination income, net of write-offs of straight-line receivables
and acquired below-market leases, net |
(1,993 |
) |
|
(1,973 |
) |
|
(20 |
) |
|
— |
|
|
— |
|
| |
Other
non-operating income, net |
(64,715 |
) |
|
(2,701 |
) |
|
— |
|
|
— |
|
|
(62,014 |
) |
| Same store
NOI at share for the nine months ended September 30, 2017 |
$ |
944,827 |
|
|
$ |
830,972 |
|
|
$ |
78,270 |
|
|
$ |
35,585 |
|
|
$ |
— |
|
| |
|
|
|
|
|
|
|
|
|
| Increase in
same store NOI at share for the nine months ended September 30,
2018 compared to September 30, 2017 |
$ |
30,917 |
|
|
$ |
24,562 |
|
|
$ |
1,268 |
|
|
$ |
5,087 |
|
|
$ |
— |
|
| |
|
|
|
|
|
|
|
|
|
|
| % increase
in same store NOI at share |
3.3 |
% |
|
3.0 |
% |
(1) |
1.6 |
% |
|
14.3 |
% |
|
— |
% |
____________________
- Excluding Hotel Pennsylvania, same store NOI at share increased
by 3.1%.
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 nine months ended September 30, 2018 compared to September 30,
2017.
| (Amounts in
thousands) |
Total |
|
New York |
|
theMART |
|
555 California Street |
|
Other |
| |
NOI at share - cash
basis for the nine months ended September 30, 2018 |
$ |
1,013,917 |
|
|
$ |
842,630 |
|
|
$ |
81,312 |
|
|
$ |
39,704 |
|
|
$ |
50,271 |
|
| |
Less NOI at share -
cash basis from: |
|
|
|
|
|
|
|
|
|
| |
Acquisitions |
(899 |
) |
|
(750 |
) |
|
(149 |
) |
|
— |
|
|
— |
|
| |
Dispositions |
(306 |
) |
|
(306 |
) |
|
— |
|
|
— |
|
|
— |
|
| |
Development properties |
(27,636 |
) |
|
(27,622 |
) |
|
— |
|
|
(14 |
) |
|
— |
|
| |
Lease
termination income |
(1,541 |
) |
|
(1,119 |
) |
|
(422 |
) |
|
— |
|
|
— |
|
| |
Other
non-operating income, net |
(51,925 |
) |
|
(1,654 |
) |
|
— |
|
|
— |
|
|
(50,271 |
) |
| Same store
NOI at share - cash basis for the nine months ended September 30,
2018 |
$ |
931,610 |
|
|
$ |
811,179 |
|
|
$ |
80,741 |
|
|
$ |
39,690 |
|
|
$ |
— |
|
| |
|
|
|
|
|
|
|
|
|
| NOI at
share - cash basis for the nine months ended September 30,
2017 |
$ |
972,263 |
|
|
$ |
804,076 |
|
|
$ |
74,846 |
|
|
$ |
33,365 |
|
|
$ |
59,976 |
|
| |
Less NOI at share -
cash basis from: |
|
|
|
|
|
|
|
|
|
| |
Acquisitions |
137 |
|
|
(63 |
) |
|
200 |
|
|
— |
|
|
— |
|
| |
Dispositions |
(1,154 |
) |
|
(1,154 |
) |
|
— |
|
|
— |
|
|
— |
|
| |
Development properties |
(24,534 |
) |
|
(24,534 |
) |
|
— |
|
|
— |
|
|
— |
|
| |
Lease
termination income |
(3,564 |
) |
|
(3,533 |
) |
|
(31 |
) |
|
— |
|
|
— |
|
| |
Other
non-operating income, net |
(63,394 |
) |
|
(3,418 |
) |
|
— |
|
|
— |
|
|
(59,976 |
) |
| Same store
NOI at share - cash basis for the nine months ended September 30,
2017 |
$ |
879,754 |
|
|
$ |
771,374 |
|
|
$ |
75,015 |
|
|
$ |
33,365 |
|
|
$ |
— |
|
| |
|
|
|
|
|
|
|
|
|
| Increase in
same store NOI at share - cash basis for the nine months ended
September 30, 2018 compared to September 30, 2017 |
$ |
51,856 |
|
|
$ |
39,805 |
|
|
$ |
5,726 |
|
|
$ |
6,325 |
|
|
$ |
— |
|
| |
|
|
|
|
|
|
|
|
|
|
| % increase
in same store NOI at share - cash basis |
5.9 |
% |
|
5.2 |
% |
(1) |
7.6 |
% |
|
19.0 |
% |
|
— |
% |
____________________
- Excluding Hotel Pennsylvania, same store NOI at share - cash
basis increased by 5.3%.
| CONTACT: |
JOSEPH MACNOW |
|
|
(212) 894-7000 |
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