• Vornado Announces Third Quarter 2024 Financial Results

    Source: Nasdaq GlobeNewswire / 04 Nov 2024 15:22:33   America/Chicago

    NEW YORK, Nov. 04, 2024 (GLOBE NEWSWIRE) -- Vornado Realty Trust (NYSE: VNO) reported today:

    Quarter Ended September 30, 2024 Financial Results

    NET LOSS attributable to common shareholders for the quarter ended September 30, 2024 was $19,154,000, or $0.10 per diluted share, compared to net income attributable to common shareholders of $52,846,000, or $0.28 per diluted share, for the prior year's quarter.

    FUNDS FROM OPERATIONS ("FFO") attributable to common shareholders plus assumed conversions (non-GAAP) for the quarter ended September 30, 2024 was $99,256,000, or $0.50 per diluted share, compared to $119,487,000, or $0.62 per diluted share, for the prior year's quarter. Adjusting for the items that impact period-to-period comparability listed in the table on the following page, FFO attributable to common shareholders plus assumed conversions, as adjusted (non-GAAP) for the quarter ended September 30, 2024 was $102,755,000, or $0.52 per diluted share, and $127,241,000, or $0.66 per diluted share, for the prior year's quarter.

    Nine Months Ended September 30, 2024 Financial Results

    NET INCOME attributable to common shareholders for the nine months ended September 30, 2024 was $7,072,000, or $0.04 per diluted share, compared to $104,391,000, or $0.54 per diluted share, for the nine months ended September 30, 2023.

    FFO attributable to common shareholders plus assumed conversions (non-GAAP) for the nine months ended September 30, 2024 was $352,914,000, or $1.79 per diluted share, compared to $382,658,000, or $1.97 per diluted share, for the nine months ended September 30, 2023. Adjusting for the items that impact period-to-period comparability listed in the table on the following page, FFO attributable to common shareholders plus assumed conversions, as adjusted (non-GAAP) for the nine months ended September 30, 2024 was $324,860,000, or $1.65 per diluted share, and $384,371,000, or $1.98 per diluted share, for the nine months ended September 30, 2023.

    The following table reconciles 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,
      2024   2023   2024   2023 
    FFO attributable to common shareholders plus assumed conversions (non-GAAP)(1)$99,256  $119,487  $352,914  $382,658 
    Per diluted share (non-GAAP)$0.50  $0.62  $1.79  $1.97 
            
    Certain expense (income) items that impact FFO attributable to common shareholders plus assumed conversions:       
    Deferred tax liability on our investment in the Farley Building (held through a taxable REIT subsidiary)$4,164  $3,115  $10,897  $8,196 
    Our share of the gain on the discounted extinguishment of the 280 Park Avenue mezzanine loan —   —   (31,215)  — 
    After-tax net gain on sale of 220 Central Park South ("220 CPS") condominium units —   —   (13,069)  (6,173)
    Other (365)  5,330   2,896   (167)
      3,799   8,445   (30,491)  1,856 
    Noncontrolling interests' share of above adjustments on a dilutive basis (300)  (691)  2,437   (143)
    Total of certain expense (income) items that impact FFO attributable to common shareholders plus assumed conversions, net$3,499  $7,754  $(28,054) $1,713 
    Per diluted share (non-GAAP)$0.02  $0.04  $(0.14) $0.01 
            
    FFO attributable to common shareholders plus assumed conversions, as adjusted (non-GAAP)$102,755  $127,241  $324,860  $384,371 
    Per diluted share (non-GAAP)$0.52  $0.66  $1.65  $1.98 

    ________________________________

    (1)See page 14 for a reconciliation of net (loss) income attributable to common shareholders to FFO attributable to common shareholders plus assumed conversions (non-GAAP) for the three and nine months ended September 30, 2024 and 2023.  
      

    FFO, as Adjusted Bridge - Q3 2024 vs. Q3 2023

    The following table bridges our FFO attributable to common shareholders plus assumed conversions, as adjusted (non-GAAP) for the three months ended September 30, 2023 to FFO attributable to common shareholders plus assumed conversions, as adjusted (non-GAAP) for the three months ended September 30, 2024:

    (Amounts in millions, except per share amounts)FFO, as Adjusted
     Amount Per Share
    FFO attributable to common shareholders plus assumed conversions, as adjusted (non-GAAP) for the three months ended September 30, 2023$127.2  $0.66 
        
    (Decrease) increase in FFO, as adjusted due to:   
    Lease expirations, net of rent commencements, and other tenant related items (16.7)  
    Change in interest expense, net of interest income (11.4)  
    Other, net 1.4   
      (26.7)  
    Noncontrolling interests' share of above items and impact of assumed conversions of convertible securities 2.3   
    Net decrease (24.4)  (0.14)
        
    FFO attributable to common shareholders plus assumed conversions, as adjusted (non-GAAP) for the three months ended September 30, 2024$102.8  $0.52 
     

    See page 14 for a reconciliation of net (loss) income attributable to common shareholders to FFO attributable to common shareholders plus assumed conversions (non-GAAP) for the three and nine months ended September 30, 2024 and 2023. Reconciliations of FFO attributable to common shareholders plus assumed conversions to FFO attributable to common shareholders plus assumed conversions, as adjusted are provided above.

    Financing Activity

    280 Park Avenue

    On April 4, 2024, a joint venture, in which we have a 50% interest, amended and extended the $1,075,000,000 mortgage loan on 280 Park Avenue. The maturity date on the amended loan was extended to September 2026, with options to fully extend to September 2028, subject to certain conditions. The interest rate on the amended loan remains at SOFR plus 1.78%. On July 8, 2024, the joint venture swapped the interest rate to a fixed rate of 5.84% through September 2028. Additionally, on April 4, 2024, the joint venture amended and extended the $125,000,000 mezzanine loan, and subsequently repaid the loan for $62,500,000. In connection with the repayment of the mezzanine loan, we recognized our $31,215,000 share of the debt extinguishment gain which is included in “income from partially owned entities” on our consolidated statements of income.

    435 Seventh Avenue

    On April 9, 2024, we completed a $75,000,000 refinancing of 435 Seventh Avenue, of which $37,500,000 is recourse to the Operating Partnership. The interest-only loan bears a rate of SOFR plus 2.10% and matures in April 2028. The interest rate on the loan was swapped to a fixed rate of 6.96% through April 2026. The loan replaces the previous $95,696,000 fully recourse loan, which bore interest at SOFR plus 1.41%.

    Unsecured Revolving Credit Facility

    On May 3, 2024, we extended one of our two unsecured revolving credit facilities to April 2029 (as fully extended). The new $915,000,000 facility replaced the $1.25 billion facility that was due to mature in April 2026. The new facility currently bears interest at a rate of SOFR plus 1.20% with a facility fee of 25 basis points. Our $1.25 billion revolving credit facility matures in December 2027 (as fully extended) and has an interest rate of SOFR plus 1.15% and a facility fee of 25 basis points.

    640 Fifth Avenue (Fifth Avenue and Times Square JV)

    On June 10, 2024, the Fifth Avenue and Times Square JV completed a $400,000,000 refinancing of 640 Fifth Avenue. The non-recourse loan matures in July 2029, bears interest at a fixed rate of 7.47% and amortizes at $7,000,000 per annum. The loan replaces the previous $500,000,000 loan, which the joint venture paid down by $100,000,000. The previous loan was fully recourse to the Operating Partnership and bore interest at SOFR plus 1.11%.

    606 Broadway

    On September 5, 2024, the $74,119,000 non-recourse mortgage loan on 606 Broadway, in which we hold a 50% interest, matured and was not repaid, at which time the lender declared an event of default. As of September 30, 2024, the property has a carrying value of $54,196,000, which is after an impairment charge recorded in the fourth quarter of 2023. We consolidate the joint venture. The loan currently bears interest at a floating rate of SOFR plus 1.91% (7.02% as of September 30, 2024) and provides for additional default interest of 3.00%.

    85 Tenth Avenue

    On September 24, 2024, a joint venture, in which we have a 49.9% interest, modified the terms of the $625,000,000 mortgage loan on 85 Tenth Avenue. Per the original loan agreement, the mortgage loan is comprised of a (i) $396,000,000 3.82% senior note, (ii) $129,000,000 5.20% mezzanine A note and (iii) $100,000,000 6.60% mezzanine B note. The modification provides for the interest payments due under the mezzanine notes to be deferred until the December 2026 loan maturity. The deferred amounts will not accrue additional interest. The cash available from the deferred interest payments will be used to fund leasing costs at the property. At loan maturity, if there is no event of default, repayment of 50% of the accrued mezzanine interest will be waived.   

    Alexander's, Inc. ("Alexander's")

    On September 30, 2024, Alexander’s, in which we own a 32.4% common equity interest, completed a $400,000,000 refinancing of the office condominium portion of 731 Lexington Avenue, the Bloomberg LP headquarters building. The interest-only loan carries a fixed rate of 5.04% and matures in October 2028. The loan is prepayable, at Alexander’s option, with no penalty, beginning in October 2026. The loan replaces the previous $490,000,000 loan on the office condominium, that bore interest at the Prime Rate and was scheduled to mature in October 2024.

    Financing Activity - continued

    Interest Rate Swap and Cap Arrangements

    We entered into the following interest rate swap and cap arrangements during the nine months ended September 30, 2024:

    (Amounts in thousands) Notional Amount
    (at share)    		 All-In Swapped Rate Expiration Date Variable Rate Spread
    Interest rate swaps:        
    280 Park Avenue (50.0% interest) $537,500 5.84% 09/28 S+178
    PENN 11(1)  250,000 6.21% 10/25 S+206
    435 Seventh Avenue  75,000 6.96% 04/26 S+210
             
        Index Strike Rate    
    Interest rate caps:        
    61 Ninth Avenue (45.1% interest) $75,543 4.39% 01/26 S+146

    ________________________________

    (1)Together with the existing $250,000 swap arrangement on the $500,000 PENN 11 mortgage loan, the loan will bear interest at an all-in swapped rate of 6.28% through October 2025.
      

    Acquisitions

    On August 6, 2024, we purchased a $50,000,000 B-Note secured by a Midtown Manhattan property at par. The B-Note, together with the $35,000,000 A-Note, is in default. The B-Note accrues interest at 5.25% plus 4.00% default interest. The $50,000,000 B-Note investment was recorded to “other assets” on our consolidated balance sheets.

    Dispositions

    220 Central Park South

    During the nine months ended September 30, 2024, we closed on the sale of two condominium units at 220 CPS for net proceeds of $31,605,000, resulting in a financial statement net gain of $15,175,000 which is included in "net gains on disposition of wholly owned and partially owned assets" on our consolidated statements of income. In connection with these sales, $2,106,000 of income tax expense was recognized on our consolidated statements of income. Four units remain unsold.

    50-70 West 93rd Street

    On May 13, 2024, we sold our 49.9% interest in 50-70 West 93rd Street to our joint venture partner. We received net proceeds of $2,000,000 after deducting our share of the existing $83,500,000 mortgage loan, which was scheduled to mature in December 2024, resulting in a net gain of $873,000. The net gain is included in "net gains on disposition of wholly owned and partially owned assets" on our consolidated statements of income.

    Alexander’s

    On May 3, 2024, Alexander’s, in which we own a 32.4% common equity interest, and Bloomberg L.P. reached an agreement to extend the leases covering approximately 947,000 square feet at 731 Lexington Avenue that were scheduled to expire in February 2029 for a term of eleven years to February 2040.

    Leasing Activity

    The leasing activity and related statistics below and on the following page are based on leases signed during the period and are not intended to coincide with the commencement of rental revenue in accordance with accounting principles generally accepted in the United States of America (“GAAP”). Second generation relet space represents square footage that has not been vacant for more than nine months and tenant improvements and leasing commissions are based on our share of square feet leased during the period.

    (Square feet in thousands) New York   555 California
    Street
      Office Retail THE MART 
    Three Months Ended September 30, 2024        
    Total square feet leased  454   97   239   46 
    Our share of square feet leased:  292   92   239   33 
    Initial rent(1) $92.32  $66.26  $50.18  $98.75 
    Weighted average lease term (years)  9.7   10.8   8.4   11.6 
    Second generation relet space:        
    Square feet  205 (2) —   145   33 
    GAAP basis:        
    Straight-line rent(3) $77.77  $—  $51.92  $107.77 
    Prior straight-line rent $77.85  $—  $48.24  $89.76 
    Percentage (decrease) increase  (0.1)%   —   7.6%  20.1%
    Cash basis (non-GAAP):        
    Initial rent(1) $84.56  $—  $52.66  $98.75 
    Prior escalated rent $90.88  $—  $54.04  $94.16 
    Percentage (decrease) increase  (7.0)%  —   (2.6)%  4.9%
    Tenant improvements and leasing commissions:        
    Per square foot $96.29  $41.37  $110.80  $225.15 
    Per square foot per annum $9.93  $3.83  $13.19  $19.41 
    Percentage of initial rent  10.8%  5.8%  26.3%  19.7%

    ________________________________

    (1)Represents the cash basis weighted average starting rent per square foot, which is generally indicative of market rents. Most leases include free rent and periodic step-ups in rent which are not included in the initial cash basis rent per square foot but are included in the GAAP basis straight-line rent per square foot.
    (2)Excludes 64 square feet of leases at PENN 1 which had been vacant for more than nine months and, therefore, are not considered second generation relet space used to calculate our mark-to-market statistics. Additionally, includes 148 square feet (at share) with no tenant improvement allowance at a reduced rent.
      

    The statistics presented below are adjusted to reflect (i) the inclusion of the 64 square feet of PENN 1 leases and (ii) the 148 square feet at share of second generation relet space based on what would have been the higher rent and tenant improvement allowance.

      Per Above As Adjusted
    GAAP basis percentage (decrease) increase (0.1)% 21.9%
    Cash basis percentage (decrease) increase (7.0)% 17.9%
    Tenant improvements and leasing commissions as a percentage of initial rent 10.8% 14.2%


    (3) Represents the GAAP basis weighted average rent per square foot that is recognized over the term of the respective leases and includes the effect of free rent and periodic step-ups in rent.
      

    Leasing Activity - continued

    (Square feet in thousands) New York   555 California
    Street
      Office Retail THE MART 
    Nine Months Ended September 30, 2024        
    Total square feet leased  2,067   137   322   153 
    Our share of square feet leased:  1,140   129   322   109 
    Initial rent(1) $112.14  $120.86  $53.00  $90.56 
    Weighted average lease term (years)  10.0   8.9   7.7   9.1 
    Second generation relet space:        
    Square feet  818   31   207   109 
    GAAP basis:        
    Straight-line rent(2) $107.77  $250.90  $54.85  $92.85 
    Prior straight-line rent $101.55  $234.04  $51.65  $81.50 
    Percentage increase  6.1%  7.2   6.2%  13.9%
    Cash basis (non-GAAP):        
    Initial rent(1) $118.90  $255.12  $56.12  $90.56 
    Prior escalated rent $117.38  $298.27  $57.34  $91.96 
    Percentage increase (decrease)  1.3%  (14.5)  (2.1)%  (1.5)%
    Tenant improvements and leasing commissions:        
    Per square foot $89.54  $59.41  $93.81  $126.66 
    Per square foot per annum $8.95  $6.68  $12.18  $13.92 
    Percentage of initial rent  8.0%  5.5%  23.0%  15.4%

    _______________________________

    (1)Represents the cash basis weighted average starting rent per square foot, which is generally indicative of market rents. Most leases include free rent and periodic step-ups in rent which are not included in the initial cash basis rent per square foot but are included in the GAAP basis straight-line rent per square foot.
    (2)Represents the GAAP basis weighted average rent per square foot that is recognized over the term of the respective leases and includes the effect of free rent and periodic step-ups in rent.
      

    Occupancy

    (At Vornado's share)New York THE MART
    		 555 California
    Street
     Total Office Retail  
    Occupancy as of September 30, 202486.7% 87.5% 77.6% 79.7% 94.5%


    Same Store Net Operating Income ("NOI") (non-GAAP) At Share:Total New York THE MART 555 California Street(1)
    Same store NOI at share % decrease(2):       
    Three months ended September 30, 2024 compared to September 30, 2023(8.4)% (9.0)% (2.8)% (4.7)%
    Nine months ended September 30, 2024 compared to September 30, 2023(7.4)% (6.0)% (5.8)% (24.3)%
    Three months ended September 30, 2024 compared to June 30, 2024(6.0)% (6.0)% (6.8)% (6.1)%
            
    Same store NOI at share - cash basis % (decrease) increase(2):       
    Three months ended September 30, 2024 compared to September 30, 2023(2.2)% (2.9)% (6.9)% 11.6%
    Nine months ended September 30, 2024 compared to September 30, 2023(4.8)% (3.7)% (3.8)% (16.4)%
    Three months ended September 30, 2024 compared to June 30, 2024(2.3)% (1.7)% (11.5)% (1.8)%

    ____________________

    (1)The nine months ended September 30, 2023 includes our $14,103,000 share of the receipt of a tenant settlement, net of legal expenses.
    (2)See pages 16 through 23 for same store NOI at share and same store NOI at share - cash basis reconciliations.
      

    NOI At Share and NOI At Share - Cash Basis:

    The elements of our New York and Other NOI at share and NOI at share - cash basis for the three and nine months ended September 30, 2024 and 2023 and the three months ended June 30, 2024 are summarized below.

    (Amounts in thousands)For the Three Months Ended For the Nine Months Ended
    September 30,
     September 30, June 30, 2024
    		 
     2024 2023  2024 2023
    NOI at share:         
    New York:         
    Office(1)$167,051 $183,919 $178,338 $513,377 $544,231
    Retail 47,283  46,559  48,392  143,141  141,183
    Residential 5,784  5,570  6,220  17,972  16,495
    Alexander's 9,470  9,586  9,203  30,380  28,085
    Total New York 229,588  245,634  242,153  704,870  729,994
    Other:         
    THE MART 14,972  15,132  16,060  45,518  47,003
    555 California Street(2) 15,780  16,564  16,800  49,109  64,840
    Other investments 5,151  3,665  5,158  15,289  14,280
    Total Other 35,903  35,361  38,018  109,916  126,123
    NOI at share$265,491 $280,995 $280,171 $814,786 $856,117


    NOI at share - cash basis:         
    New York:         
    Office(1)$173,415 $179,838 $176,915 $516,700 $543,172
    Retail 44,095  45,451  44,700  132,668  134,441
    Residential 5,527  5,271  5,947  17,164  15,451
    Alexander's 10,424  10,284  10,272  35,557  30,376
    Total New York 233,461  240,844  237,834  702,089  723,440
    Other:         
    THE MART 14,901  15,801  16,835  46,685  47,068
    555 California Street(2) 19,589  17,552  19,956  56,483  67,554
    Other investments 4,347  3,818  4,965  14,244  14,557
    Total Other 38,837  37,171  41,756  117,412  129,179
    NOI at share - cash basis$272,298 $278,015 $279,590 $819,501 $852,619

    ________________________________

    (1)Includes Building Maintenance Services NOI of $8,280, $7,752, $7,926, $23,423 and $20,838 for the three months ended September 30, 2024 and 2023 and June 30, 2024 and the nine months ended September 30, 2024 and 2023, respectively.
    (2)The nine months ended September 30, 2023 includes our $14,103 share of the receipt of a tenant settlement, net of legal expenses.
      

    Active Development/Redevelopment Summary as of September 30, 2024:

    (Amounts in thousands, except square feet)    
        (at Vornado’s share)   Projected Incremental
    Cash Yield


    New York segment:    		 Property
    Rentable
    Sq. Ft.    		 Budget Cash Amount
    Expended    		 Remaining Expenditures Stabilization Year 
    PENN District:              
    PENN 2 1,795,000 $750,000 $685,275 $64,725 2026  9.5% 
    Districtwide Improvements N/A  100,000  66,164  33,836 N/A  N/A 
    Total PENN District    850,000(1) 751,439  98,561      
                   
    Sunset Pier 94 Studios (49.9% interest) 266,000  125,000(2) 34,298  90,702 2026  10.3% 
                   
    Total Active Development Projects   $975,000 $785,737 $189,263      

    ________________________________

    (1)Excluding debt and equity carry.
    (2)Represents our 49.9% share of the $350,000 development budget, excluding the $40,000 value of our contributed leasehold interest and net of an estimated $9,000 for our share of development fees and reimbursement for overhead costs incurred by us. As of September 30, 2024, we have fully funded our $34,000 share of cash contributions.
      

    There can be no assurance that the above projects will be completed, completed on schedule or within budget. In addition, there can be no assurance that the Company will be successful in leasing the properties on the expected schedule or at the assumed rental rates.        

    Conference Call and Audio Webcast
    As previously announced, the Company will host a quarterly earnings conference call and an audio webcast on Tuesday, November 5, 2024 at 10:00 a.m. Eastern Time (ET). The conference call can be accessed by dialing 888-317-6003 (domestic) or 412-317-6061 (international) and entering the passcode 1557554. A live webcast of the conference call will be available on Vornado’s website at www.vno.com in the Investor Relations section and an online playback of the webcast will be available on the website following the conference call.

    Contact

    Thomas J. Sanelli

    (212) 894-7000

    Supplemental Data

    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. Forward-looking statements are not guarantees of future performance. They represent our intentions, plans, expectations and beliefs and are subject to numerous assumptions, risks and uncertainties. Our future results, financial condition and business may differ materially from those expressed in these forward-looking statements. You can find many of these statements by looking for words such as "approximates," "believes," "expects," "anticipates," "estimates," "intends," "plans," "would," "may" or other similar expressions in this press release. We also note the following forward-looking statements: in the case of our development and redevelopment projects, the estimated completion date, estimated project cost, projected incremental cash yield, stabilization date and cost to complete; estimates of future capital expenditures, dividends to common and preferred shareholders and operating partnership distributions. 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, 2023. Currently, some of the factors are the increased interest rates and effects of inflation on our business, financial condition, results of operations, cash flows, operating performance and the effect that these factors have had and may continue to have on our tenants, the global, national, regional and local economies and financial markets and the real estate market in general.


    VORNADO REALTY TRUST
    CONSOLIDATED BALANCE SHEETS
     
    (Amounts in thousands)As of Increase
    (Decrease)
     September 30, 2024 December 31, 2023 
    ASSETS     
    Real estate, at cost:     
    Land$2,434,209  $2,436,221  $(2,012)
    Buildings and improvements 10,306,041   9,952,954   353,087 
    Development costs and construction in progress 1,153,831   1,281,076   (127,245)
    Leasehold improvements and equipment 137,086   130,953   6,133 
    Total 14,031,167   13,801,204   229,963 
    Less accumulated depreciation and amortization (3,969,369)  (3,752,827)  (216,542)
    Real estate, net 10,061,798   10,048,377   13,421 
    Right-of-use assets 677,135   680,044   (2,909)
    Cash, cash equivalents, and restricted cash     
    Cash and cash equivalents 783,596   997,002   (213,406)
    Restricted cash 245,479   264,582   (19,103)
    Total 1,029,075   1,261,584   (232,509)
    Tenant and other receivables 72,061   69,543   2,518 
    Investments in partially owned entities 2,682,672   2,610,558   72,114 
    Receivable arising from the straight-lining of rents 698,912   701,666   (2,754)
    Deferred leasing costs, net 352,765   355,010   (2,245)
    Identified intangible assets, net 120,252   127,082   (6,830)
    Other assets 388,431   333,801   54,630 
    Total assets$16,083,101  $16,187,665  $(104,564)
    LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND EQUITY     
    Liabilities:     
    Mortgages payable, net$5,675,054  $5,688,020  $(12,966)
    Senior unsecured notes, net 1,195,403   1,193,873   1,530 
    Unsecured term loan, net 795,601   794,559   1,042 
    Unsecured revolving credit facilities 575,000   575,000   — 
    Lease liabilities 746,060   732,859   13,201 
    Accounts payable and accrued expenses 362,395   411,044   (48,649)
    Deferred revenue 29,236   32,199   (2,963)
    Deferred compensation plan 113,352   105,245   8,107 
    Other liabilities 323,541   311,132   12,409 
    Total liabilities 9,815,642   9,843,931   (28,289)
    Redeemable noncontrolling interests 808,189   638,448   169,741 
    Shareholders' equity 5,277,954   5,509,064   (231,110)
    Noncontrolling interests in consolidated subsidiaries 181,316   196,222   (14,906)
    Total liabilities, redeemable noncontrolling interests and equity$16,083,101  $16,187,665  $(104,564)
     


    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,
      2024   2023   2024   2023 
    Revenues$443,255  $450,995  $1,329,896  $1,369,277 
            
    Net (loss) income$(19,468) $59,570  $14,358  $133,501 
    Less net loss (income) attributable to noncontrolling interests in:       
    Consolidated subsidiaries 14,152   13,541   40,024   26,250 
    Operating Partnership 1,690   (4,736)  (724)  (8,773)
    Net (loss) income attributable to Vornado (3,626)  68,375   53,658   150,978 
    Preferred share dividends (15,528)  (15,529)  (46,586)  (46,587)
    Net (loss) income attributable to common shareholders$(19,154) $52,846  $7,072  $104,391 
            
    (Loss) income per common share - basic:       
    Net (loss) income per common share$(0.10) $0.28  $0.04  $0.55 
    Weighted average shares outstanding 190,556   190,364   190,493   191,228 
            
    (Loss) income per common share - diluted:       
    Net (loss) income per common share$(0.10) $0.28  $0.04  $0.54 
    Weighted average shares outstanding 190,556   192,921   195,473   193,845 
            
    FFO attributable to common shareholders plus assumed conversions (non-GAAP)$99,256  $119,487  $352,914  $382,658 
    Per diluted share (non-GAAP)$0.50  $0.62  $1.79  $1.97 
            
    FFO attributable to common shareholders plus assumed conversions, as adjusted (non-GAAP)$102,755  $127,241  $324,860  $384,371 
    Per diluted share (non-GAAP)$0.52  $0.66  $1.65  $1.98 
            
    Weighted average shares used in determining FFO attributable to common shareholders plus assumed conversions per diluted share 198,912   193,036   197,224   194,012 
     

    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 certain real estate assets, impairment write-downs of certain real estate assets and investments in entities when the impairment is directly attributable to decreases in the value of depreciable real estate held by the entity, depreciation and amortization expense from real estate assets and other specified 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. 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 net (loss) income attributable to common shareholders to FFO attributable to common shareholders plus assumed conversions are provided on the following page. 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 2 of this press release.

    VORNADO REALTY TRUST
    NON-GAAP RECONCILIATIONS

    The following table reconciles net (loss) income attributable to common shareholders to FFO attributable to common shareholders plus assumed conversions:

    (Amounts in thousands, except per share amounts)For the Three Months Ended
    September 30,    		 For the Nine Months Ended
    September 30,
      2024   2023   2024   2023 
    Net (loss) income attributable to common shareholders$(19,154) $52,846  $7,072  $104,391 
    Per diluted share$(0.10) $0.28  $0.04  $0.54 
            
    FFO adjustments:       
    Depreciation and amortization of real property$103,190  $97,809  $297,870  $287,523 
    Real estate impairment losses —   625   —   625 
    Net gains on sale of real estate —   (53,045)  (873)  (53,305)
    Our share of partially owned entities:       
    Depreciation and amortization of real property 25,091   26,765   77,712   80,900 
    Net gain on sale of real estate —   —   —   (16,545)
    FFO adjustments, net 128,281   72,154   374,709   299,198 
    Impact of assumed conversion of dilutive convertible securities 385   387   1,164   1,225 
    Noncontrolling interests' share of above adjustments on a dilutive basis (10,256)  (5,900)  (30,031)  (22,156)
    FFO attributable to common shareholders plus assumed conversions$99,256  $119,487  $352,914  $382,658 
    Per diluted share$0.50  $0.62  $1.79  $1.97 
            
    Reconciliation of weighted average shares outstanding:       
    Weighted average common shares outstanding 190,556   190,364   190,493   191,228 
    Effect of dilutive securities:       
    Share-based payment awards 6,824   445   4,980   163 
    Convertible securities 1,532   2,227   1,751   2,621 
    Denominator for FFO per diluted share 198,912   193,036   197,224   194,012 
     

    VORNADO REALTY TRUST
    NON-GAAP RECONCILIATIONS - CONTINUED

    Below is a reconciliation of net (loss) income to NOI at share and NOI at share - cash basis for the three and nine months ended September 30, 2024 and 2023 and the three months ended June 30, 2024.

    (Amounts in thousands)For the Three Months Ended For the Nine Months Ended
    September 30,
     September 30, June 30, 2024
    		 
      2024   2023    2024   2023 
    Net (loss) income$(19,468) $59,570  $40,099  $14,358  $133,501 
    Depreciation and amortization expense 116,006   110,349   109,774   334,439   324,076 
    General and administrative expense 35,511   35,838   38,475   111,883   116,843 
    Transaction related costs and other (113)  813   3,361   3,901   1,501 
    Income from partially owned entities (18,229)  (18,269)  (47,949)  (82,457)  (72,207)
    Interest and other investment income, net (12,391)  (14,717)  (10,511)  (34,626)  (37,454)
    Interest and debt expense 100,907   88,126   98,401   289,786   261,528 
    Net gains on disposition of wholly owned and partially owned assets —   (56,136)  (16,048)  (16,048)  (64,592)
    Income tax expense 4,883   11,684   5,284   16,907   20,848 
    NOI from partially owned entities 67,292   72,100   68,298   205,959   210,942 
    NOI attributable to noncontrolling interests in consolidated subsidiaries (8,907)  (8,363)  (9,013)  (29,316)  (38,869)
    NOI at share 265,491   280,995   280,171   814,786   856,117 
    Non-cash adjustments for straight-line rents, amortization of acquired below-market leases, net, and other 6,807   (2,980)  (581)  4,715   (3,498)
    NOI at share - cash basis$272,298  $278,015  $279,590  $819,501  $852,619 
     

    NOI at share represents total revenues less operating expenses including our share of partially owned entities. NOI at share - cash basis represents NOI at share adjusted to exclude straight-line rental income and expense, amortization of acquired below and above market leases, accruals for ground rent resets yet to be determined, and other non-cash adjustments. We consider NOI at share - cash basis 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 at share - cash basis, we utilize this measure to make investment decisions as well as to compare the performance of our assets to that of our peers. NOI at share and NOI at share - cash basis should not be considered alternatives 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

    Same store NOI at share represents NOI at share from operations which are in service in both the current and prior year reporting periods. Same store NOI at share - cash basis is same store NOI at share adjusted to exclude straight-line rental income and expense, amortization of acquired below and above market leases, accruals for ground rent resets yet to be determined, and other non-cash adjustments. 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 alternatives to net income or cash flow from operations and may not be comparable to similarly titled measures employed by other companies.

    Below are reconciliations of NOI at share to same store NOI at share for our New York segment, THE MART, 555 California Street and other investments for the three months ended September 30, 2024 compared to September 30, 2023.

    (Amounts in thousands)Total New York THE MART 555 California Street Other
    NOI at share for the three months ended September 30, 2024$265,491  $229,588  $14,972  $15,780  $5,151 
    Less NOI at share from:         
    Dispositions (25)  (29)  4   —   — 
    Development properties (11,959)  (11,959)  —   —   — 
    Other non-same store income, net (5,678)  (527)  —   —   (5,151)
    Same store NOI at share for the three months ended September 30, 2024$247,829  $217,073  $14,976  $15,780  $— 
              
    NOI at share for the three months ended September 30, 2023$280,995  $245,634  $15,132  $16,564  $3,665 
    Less NOI at share from:         
    Dispositions (759)  (1,035)  276   —   — 
    Development properties (4,905)  (4,905)  —   —   — 
    Other non-same store income, net (4,773)  (1,108)  —   —   (3,665)
    Same store NOI at share for the three months ended September 30, 2023$270,558  $238,586  $15,408  $16,564  $— 
              
    Decrease in same store NOI at share$(22,729) $(21,513) $(432) $(784) $— 
              
    % decrease in same store NOI at share (8.4)%  (9.0)%  (2.8)%  (4.7)%  0.0%
     

    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, THE MART, 555 California Street and other investments for the three months ended September 30, 2024 compared to September 30, 2023.

    (Amounts in thousands)Total New York THE MART 555 California Street Other
    NOI at share - cash basis for the three months ended September 30, 2024$272,298  $233,461  $14,901  $19,589  $4,347 
    Less NOI at share - cash basis from:         
    Dispositions (25)  (29)  4   —   — 
    Development properties (6,574)  (6,574)  —   —   — 
    Other non-same store income, net (7,031)  (2,684)  —   —   (4,347)
    Same store NOI at share - cash basis for the three months ended September 30, 2024$258,668  $224,174  $14,905  $19,589  $— 
              
    NOI at share - cash basis for the three months ended September 30, 2023$278,015  $240,844  $15,801  $17,552  $3,818 
    Less NOI at share - cash basis from:         
    Dispositions (869)  (1,082)  213   —   — 
    Development properties (4,301)  (4,301)  —   —   — 
    Other non-same store income, net (8,380)  (4,562)  —   —   (3,818)
    Same store NOI at share - cash basis for the three months ended September 30, 2023$264,465  $230,899  $16,014  $17,552  $— 
              
    (Decrease) increase in same store NOI at share - cash basis$(5,797) $(6,725) $(1,109) $2,037  $— 
              
    % (decrease) increase in same store NOI at share - cash basis (2.2)%  (2.9)%  (6.9)%  11.6%  0.0%
     

    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, THE MART, 555 California Street and other investments for the nine months ended September 30, 2024 compared to September 30, 2023.

    (Amounts in thousands)Total New York THE MART 555 California Street Other
    NOI at share for the nine months ended September 30, 2024$814,786  $704,870  $45,518  $49,109  $15,289 
    Less NOI at share from:         
    Dispositions (1,444)  (1,454)  10   —   — 
    Development properties (29,555)  (29,555)  —   —   — 
    Other non-same store income, net (17,586)  (2,297)  —   —   (15,289)
    Same store NOI at share for the nine months ended September 30, 2024$766,201  $671,564  $45,528  $49,109  $— 
              
    NOI at share for the nine months ended September 30, 2023$856,117  $729,994  $47,003  $64,840  $14,280 
    Less NOI at share from:         
    Dispositions (1,790)  (3,136)  1,346   —   — 
    Development properties (13,627)  (13,627)  —   —   — 
    Other non-same store (income) expense, net (12,918)  1,362   —   —   (14,280)
    Same store NOI at share for the nine months ended September 30, 2023$827,782  $714,593  $48,349  $64,840  $— 
              
    Decrease in same store NOI at share$(61,581) $(43,029) $(2,821) $(15,731) $— 
              
    % decrease in same store NOI at share (7.4)%  (6.0)%  (5.8)%  (24.3)%  0.0%
     

    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, THE MART, 555 California Street and other investments for the nine months ended September 30, 2024 compared to September 30, 2023.

    (Amounts in thousands)Total New York THE MART 555 California Street Other
    NOI at share - cash basis for the nine months ended September 30, 2024$819,501  $702,089  $46,685  $56,483  $14,244 
    Less NOI at share - cash basis from:         
    Dispositions (1,444)  (1,454)  10   —   — 
    Development properties (19,897)  (19,897)  —   —   — 
    Other non-same store income, net (20,284)  (6,040)  —   —   (14,244)
    Same store NOI at share - cash basis for the nine months ended September 30, 2024$777,876  $674,698  $46,695  $56,483  $— 
              
    NOI at share - cash basis for the nine months ended September 30, 2023$852,619  $723,440  $47,068  $67,554  $14,557 
    Less NOI at share - cash basis from:         
    Dispositions (2,133)  (3,597)  1,464   —   — 
    Development properties (13,001)  (13,001)  —   —   — 
    Other non-same store income, net (20,588)  (6,031)  —   —   (14,557)
    Same store NOI at share - cash basis for the nine months ended September 30, 2023$816,897  $700,811  $48,532  $67,554  $— 
              
    Decrease in same store NOI at share - cash basis$(39,021) $(26,113) $(1,837) $(11,071) $— 
              
    % decrease in same store NOI at share - cash basis (4.8)%  (3.7)%  (3.8)%  (16.4)%  0.0%
     

    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, THE MART, 555 California Street and other investments for the three months ended September 30, 2024 compared to June 30, 2024.

    (Amounts in thousands)Total New York THE MART 555 California Street Other
    NOI at share for the three months ended September 30, 2024$265,491  $229,588  $14,972  $15,780  $5,151 
    Less NOI at share from:         
    Dispositions (25)  (29)  4   —   — 
    Development properties (11,959)  (11,959)  —   —   — 
    Other non-same store income, net (5,678)  (527)  —   —   (5,151)
    Same store NOI at share for the three months ended September 30, 2024$247,829  $217,073  $14,976  $15,780  $— 
              
    NOI at share for the three months ended June 30, 2024$280,171  $242,153  $16,060  $16,800  $5,158 
    Less NOI at share from:         
    Dispositions (620)  (633)  13   —   — 
    Development properties (9,637)  (9,637)  —   —   — 
    Other non-same store income, net (6,188)  (1,030)  —   —   (5,158)
    Same store NOI at share for the three months ended June 30, 2024$263,726  $230,853  $16,073  $16,800  $— 
              
    Decrease in same store NOI at share$(15,897) $(13,780) $(1,097) $(1,020) $— 
              
    % decrease in same store NOI at share (6.0)%  (6.0)%  (6.8)%  (6.1%)  0.0%
     

    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, THE MART, 555 California Street and other investments for the three months ended September 30, 2024 compared to June 30, 2024.

    (Amounts in thousands)Total New York THE MART 555 California Street Other
    NOI at share - cash basis for the three months ended September 30, 2024$272,298  $233,461  $14,901  $19,589  $4,347 
    Less NOI at share - cash basis from:         
    Dispositions (25)  (29)  4   —   — 
    Development properties (6,574)  (6,574)  —   —   — 
    Other non-same store income, net (7,031)  (2,684)  —   —   (4,347)
    Same store NOI at share - cash basis for the three months ended September 30, 2024$258,668  $224,174  $14,905  $19,589  $— 
              
    NOI at share - cash basis for the three months ended June 30, 2024$279,590  $237,834  $16,835  $19,956  $4,965 
    Less NOI at share - cash basis from:         
    Dispositions (620)  (633)  13   —   — 
    Development properties (7,353)  (7,353)  —   —   — 
    Other non-same store income, net (6,769)  (1,804)  —   —   (4,965)
    Same store NOI at share - cash basis for the three months ended June 30, 2024$264,848  $228,044  $16,848  $19,956  $— 
              
    Decrease in same store NOI at share - cash basis$(6,180) $(3,870) $(1,943) $(367) $— 
              
    % decrease in same store NOI at share - cash basis (2.3)%  (1.7)%  (11.5)%  (1.8)%  0.0%
     

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