NEW YORK, Oct. 29, 2018 (GLOBE NEWSWIRE) -- 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 TRUST
CONSOLIDATED 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 TRUST
OPERATING 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 TRUST
NON-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 TRUST
NON-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 TRUST
NON-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 TRUST
NON-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 TRUST
NON-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 TRUST
NON-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 TRUST
NON-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 TRUST
NON-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 |