• Vornado Announces Second Quarter 2024 Financial Results

    来源: Nasdaq GlobeNewswire / 05 8月 2024 15:20:37   America/Chicago

    NEW YORK, Aug. 05, 2024 (GLOBE NEWSWIRE) -- Vornado Realty Trust (NYSE: VNO) reported today:

    Quarter Ended June 30, 2024 Financial Results

    NET INCOME attributable to common shareholders for the quarter ended June 30, 2024 was $35,260,000, or $0.18 per diluted share, compared to $46,377,000, or $0.24 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 June 30, 2024 was $148,944,000, or $0.76 per diluted share, compared to $144,059,000, or $0.74 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 June 30, 2024 was $112,766,000, or $0.57 per diluted share, and $140,737,000, or $0.72 per diluted share, for the prior year's quarter.

    Six Months Ended June 30, 2024 Financial Results

    NET INCOME attributable to common shareholders for the six months ended June 30, 2024 was $26,226,000, or $0.13 per diluted share, compared to $51,545,000, or $0.27 per diluted share, for the six months ended June 30, 2023.

    FFO attributable to common shareholders plus assumed conversions (non-GAAP) for the six months ended June 30, 2024 was $253,068,000, or $1.29 per diluted share, compared to $263,149,000, or $1.35 per diluted share, for the six months ended June 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 six months ended June 30, 2024 was $221,608,000, or $1.13 per diluted share, and $257,032,000, or $1.32 per diluted share, for the six months ended June 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
    June 30,    		 For the Six Months Ended
    June 30,
      2024   2023   2024   2023 
    FFO attributable to common shareholders plus assumed conversions (non-GAAP)(1)$148,944  $144,059  $253,068  $263,149 
    Per diluted share (non-GAAP)$0.76  $0.74  $1.29  $1.35 
            
    Certain (income) expense items that impact FFO attributable to common shareholders plus assumed conversions:       
    Our share of the gain on the discounted extinguishment of the 280 Park Avenue mezzanine loan$(31,215) $—  $(31,215) $— 
    After-tax net gain on sale of 220 Central Park South ("220 CPS") condominium units (13,069)  —   (13,069)  (6,173)
    Deferred tax liability on our investment in the Farley Building (held through a taxable REIT subsidiary) 2,599   2,206   6,733   5,081 
    Other 2,252   (5,785)  3,261   (5,497)
      (39,433)  (3,579)  (34,290)  (6,589)
    Noncontrolling interests' share of above adjustments 3,255   257   2,830   472 
    Total of certain (income) expense items that impact FFO attributable to common shareholders plus assumed conversions, net$(36,178) $(3,322) $(31,460) $(6,117)
    Per diluted share (non-GAAP)$(0.19) $(0.02) $(0.16) $(0.03)
            
    FFO attributable to common shareholders plus assumed conversions, as adjusted (non-GAAP)$112,766  $140,737  $221,608  $257,032 
    Per diluted share (non-GAAP)$0.57  $0.72  $1.13  $1.32 

    ________________________________

    (1) See page 9 for a reconciliation of net income attributable to common shareholders to FFO attributable to common shareholders plus assumed conversions (non-GAAP) for the three and six months ended June 30, 2024 and 2023.

    FFO, as Adjusted Bridge - Q2 2024 vs. Q2 2023

    The following table bridges our FFO attributable to common shareholders plus assumed conversions, as adjusted (non-GAAP) for the three months ended June 30, 2023 to FFO attributable to common shareholders plus assumed conversions, as adjusted (non-GAAP) for the three months ended June 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 June 30, 2023$140.7  $0.72 
        
    (Decrease) increase in FFO, as adjusted due to:   
    Lease expirations, net of rent commencements, and other tenant related items (15.1)  
    345 Montgomery Street tenant settlement proceeds, net of legal expenses in 2023 (14.1)  
    Change in interest expense, net of interest income (7.0)  
    Variable businesses (primarily signage) 3.9   
    Other, net 3.7   
      (28.6)  
    Noncontrolling interests' share of above items and impact of assumed conversions of convertible securities 0.7   
    Net decrease (27.9)  (0.15)
        
    FFO attributable to common shareholders plus assumed conversions, as adjusted (non-GAAP) for the three months ended June 30, 2024$112.8  $0.57 

    See page 9 for a reconciliation of net income attributable to common shareholders to FFO attributable to common shareholders plus assumed conversions (non-GAAP) for the three and six months ended June 30, 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%.

    Interest Rate Swap and Cap Arrangements

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

    (Amounts in thousands) Notional Amount
    (at share)    		 All-In Swapped
    Rate    		 Expiration Date Variable Rate Spread
    Interest rate swaps:        
    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.

    Dispositions

    220 Central Park South

    During the three and six months ended June 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 Inc. (“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 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.

    For the Three Months Ended June 30, 2024:

    • 1,322,000 square feet of New York Office space (598,000 square feet at share) at an initial rent of $131.37 per square foot and a weighted average lease term of 9.7 years. The changes in the GAAP and cash mark-to-market rent on the 518,000 square feet of second generation space were positive 8.2% and positive 3.4%, respectively. Tenant improvements and leasing commissions were $6.54 per square foot per annum, or 5.0% of initial rent.
    • 4,000 square feet of New York Retail space (all at share) at an initial rent of $301.14 per square foot and a weighted average lease term of 5.0 years. The changes in the GAAP and cash mark-to-market rent on the 4,000 square feet of second generation space were positive 26.9% and positive 14.8%, respectively. Tenant improvements and leasing commissions were $10.99 per square foot per annum, or 3.6% of initial rent.
    • 32,000 square feet at THE MART (all at share) at an initial rent of $56.39 per square foot and a weighted average lease term of 7.2 years. The changes in the GAAP and cash mark-to-market rent on the 19,000 square feet of second generation space were negative 3.5% and negative 4.3%, respectively. Tenant improvements and leasing commissions were $7.86 per square foot per annum, or 13.9% of initial rent.
    • 66,000 square feet at 555 California Street (47,000 square feet at share) at an initial rent of $99.14 per square foot and a weighted average lease term of 9.8 years. The changes in the GAAP and cash mark-to-market rent on the 47,000 square feet of second generation space were positive 32.4% and positive 13.3%, respectively. Tenant improvements and leasing commissions were $12.56 per square foot per annum, or 12.7% of initial rent.

    For the Six Months Ended June 30, 2024:

    • 1,613,000 square feet of New York Office space (848,000 square feet at share) at an initial rent of $118.96 per square foot and a weighted average lease term of 10.1 years. The changes in the GAAP and cash mark-to-market rent on the 613,000 square feet of second generation space were positive 7.6% and positive 3.3%, respectively. Tenant improvements and leasing commissions were $8.64 per square foot per annum, or 7.3% of initial rent.
    • 40,000 square feet of New York Retail space (37,000 square feet at share) at an initial rent of $258.76 per square foot and a weighted average lease term of 3.9 years. The changes in the GAAP and cash mark-to-market rent on the 31,000 square feet of second generation space were positive 7.2% and negative 14.5%, respectively. Tenant improvements and leasing commissions were $26.92 per square foot per annum, or 10.4% of initial rent.
    • 83,000 square feet at THE MART (all at share) at an initial rent of $61.09 per square foot and a weighted average lease term of 5.5 years. The changes in the GAAP and cash mark-to-market rent on the 62,000 square feet of second generation space were positive 3.5% and negative 1.4%, respectively. Tenant improvements and leasing commissions were $8.17 per square foot per annum, or 13.4% of initial rent.
    • 107,000 square feet at 555 California Street (76,000 square feet at share) at an initial rent of $87.03 per square foot and a weighted average lease term of 8.1 years. The changes in the GAAP and cash mark-to-market rent on the 76,000 square feet of second generation space were positive 10.9% and negative 4.4%, respectively. Tenant improvements and leasing commissions were $10.40 per square foot per annum, or 11.9% of initial rent.

    Occupancy

    (At Vornado's share)New York THE MART
    		 555 California Street
     Total Office Retail  
    Occupancy as of June 30, 202488.3% 89.3% 77.0% 76.9% 94.5%


    Same Store Net Operating Income ("NOI") At Share:Total New York THE MART 555 California Street(1)
    Same store NOI at share % (decrease) increase(2):       
    Three months ended June 30, 2024 compared to June 30, 2023(9.0)% (4.4)% (4.6)% (46.4)%
    Six months ended June 30, 2024 compared to June 30, 2023(7.0)% (4.5)% (7.3)% (31.0)%
    Three months ended June 30, 2024 compared to March 31, 20243.6% 3.3% 11.0% 1.6%
            
    Same store NOI at share - cash basis % (decrease) increase(2):       
    Three months ended June 30, 2024 compared to June 30, 2023(6.6)% (2.7)% (1.3)% (38.2)%
    Six months ended June 30, 2024 compared to June 30, 2023(5.9)% (3.9)% (2.2)% (26.2)%
    Three months ended June 30, 2024 compared to March 31, 20244.0% 2.3% 12.8% 17.8%

    ____________________

    (1) 2023 includes our $14,103,000 share of the receipt of a tenant settlement, net of legal expenses.
    (2) See pages 11 through 16 for same store NOI at share and same store NOI at share - cash basis reconciliations.

    NOI At Share & 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 six months ended June 30, 2024 and 2023 and the three months ended March 31, 2024 are summarized below.

    (Amounts in thousands)For the Three Months Ended For the Six Months Ended
    June 30,
     June 30, March 31, 2024
    		 
      2024  2023   2024  2023
    NOI at share:         
    New York:         
    Office(1)$178,338 $186,042 $167,988 $346,326 $360,312
    Retail 48,392  47,428  47,466  95,858  94,624
    Residential 6,220  5,467  5,968  12,188  10,925
    Alexander's 9,203  9,429  11,707  20,910  18,499
    Total New York 242,153  248,366  233,129  475,282  484,360
    Other:         
    THE MART 16,060  16,462  14,486  30,546  31,871
    555 California Street(2) 16,800  31,347  16,529  33,329  48,276
    Other investments 5,158  5,464  4,980  10,138  10,615
    Total Other 38,018  53,273  35,995  74,013  90,762
    NOI at share$280,171 $301,639 $269,124 $549,295 $575,122


    NOI at share - cash basis:         
    New York:         
    Office(1)$176,915 $181,253 $166,370 $343,285 $363,334
    Retail 44,700  44,956  43,873  88,573  88,990
    Residential 5,947  5,129  5,690  11,637  10,180
    Alexander's 10,272  10,231  14,861  25,133  20,092
    Total New York 237,834  241,569  230,794  468,628  482,596
    Other:         
    THE MART 16,835  16,592  14,949  31,784  31,267
    555 California Street(2) 19,956  32,284  16,938  36,894  50,002
    Other investments 4,965  5,624  4,932  9,897  10,739
    Total Other 41,756  54,500  36,819  78,575  92,008
    NOI at share - cash basis$279,590 $296,069 $267,613 $547,203 $574,604

    ________________________________
    (1)   Includes Building Maintenance Services NOI of $7,926, $6,797, $7,217, $15,143 and $13,086 for the three months ended June 30, 2024 and 2023 and March 31, 2024 and the six months ended June 30, 2024 and 2023, respectively.
    (2)   2023 includes our $14,103 share of the receipt of a tenant settlement, net of legal expenses.

    Active Development/Redevelopment Summary as of June 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 $675,504 $74,496 2026  9.5% 
    Districtwide Improvements N/A  100,000  60,493  39,507 N/A  N/A 
    Total PENN District    850,000(1) 735,997  114,003      
                   
    Sunset Pier 94 Studios (49.9% interest) 266,000  125,000(2) 19,494  105,506 2026  10.3% 
                   
    Total Active Development Projects   $975,000 $755,491 $219,509      

    ________________________________
    (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. $34,000 will be funded via cash contributions, of which $19,494 has been funded as of June 30, 2024.   

    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, August 6, 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 8799771. 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)
     June 30, 2024 December 31, 2023 
    ASSETS     
    Real estate, at cost:     
    Land$2,434,209  $2,436,221  $(2,012)
    Buildings and improvements 10,228,821   9,952,954   275,867 
    Development costs and construction in progress 1,156,060   1,281,076   (125,016)
    Leasehold improvements and equipment 133,755   130,953   2,802 
      Total 13,952,845   13,801,204   151,641 
    Less accumulated depreciation and amortization (3,899,475)  (3,752,827)  (146,648)
    Real estate, net 10,053,370   10,048,377   4,993 
    Right-of-use assets 678,670   680,044   (1,374)
    Cash, cash equivalents, and restricted cash     
    Cash and cash equivalents 872,609   997,002   (124,393)
    Restricted cash 244,245   264,582   (20,337)
      Total 1,116,854   1,261,584   (144,730)
    Tenant and other receivables 71,213   69,543   1,670 
    Investments in partially owned entities 2,711,080   2,610,558   100,522 
    Receivable arising from the straight-lining of rents 706,157   701,666   4,491 
    Deferred leasing costs, net 354,395   355,010   (615)
    Identified intangible assets, net 122,414   127,082   (4,668)
    Other assets 396,028   333,801   62,227 
    Total assets$16,210,181  $16,187,665  $22,516 
    LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND EQUITY     
    Liabilities:     
    Mortgages payable, net$5,672,086  $5,688,020  $(15,934)
    Senior unsecured notes, net 1,194,894   1,193,873   1,021 
    Unsecured term loan, net 795,254   794,559   695 
    Unsecured revolving credit facilities 575,000   575,000   — 
    Lease liabilities 741,762   732,859   8,903 
    Accounts payable and accrued expenses 363,457   411,044   (47,587)
    Deferred revenue 30,805   32,199   (1,394)
    Deferred compensation plan 108,553   105,245   3,308 
    Other liabilities 316,906   311,132   5,774 
    Total liabilities 9,798,717   9,843,931   (45,214)
    Redeemable noncontrolling interests 593,465   638,448   (44,983)
    Shareholders' equity 5,626,300   5,509,064   117,236 
    Noncontrolling interests in consolidated subsidiaries 191,699   196,222   (4,523)
    Total liabilities, redeemable noncontrolling interests and equity$16,210,181  $16,187,665  $22,516 


    VORNADO REALTY TRUST
    OPERATING RESULTS

    (Amounts in thousands, except per share amounts)For the Three Months Ended
    June 30,    		 For the Six Months Ended
    June 30,
      2024   2023   2024   2023 
    Revenues$450,266  $472,359  $886,641  $918,282 
            
    Net income$40,099  $62,733  $33,826  $73,931 
    Less net loss (income) attributable to noncontrolling interests in:       
    Consolidated subsidiaries 13,890   2,781   25,872   12,709 
    Operating Partnership (3,200)  (3,608)  (2,414)  (4,037)
    Net income attributable to Vornado 50,789   61,906   57,284   82,603 
    Preferred share dividends (15,529)  (15,529)  (31,058)  (31,058)
    Net income attributable to common shareholders$35,260  $46,377  $26,226  $51,545 
            
    Income per common share - basic:       
    Net income per common share$0.19  $0.24  $0.14  $0.27 
    Weighted average shares outstanding 190,492   191,468   190,460   191,668 
            
    Income per common share - diluted:       
    Net income per common share$0.18  $0.24  $0.13  $0.27 
    Weighted average shares outstanding 194,405   194,804   194,518   194,364 
            
    FFO attributable to common shareholders plus assumed conversions (non-GAAP)$148,944  $144,059  $253,068  $263,149 
    Per diluted share (non-GAAP)$0.76  $0.74  $1.29  $1.35 
            
    FFO attributable to common shareholders plus assumed conversions, as adjusted (non-GAAP)$112,766  $140,737  $221,608  $257,032 
    Per diluted share (non-GAAP)$0.57  $0.72  $1.13  $1.32 
            
    Weighted average shares used in determining FFO attributable to common shareholders plus assumed conversions per diluted share 196,339   194,878   196,405   194,543 

    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 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 income attributable to common shareholders to FFO attributable to common shareholders plus assumed conversions:

    (Amounts in thousands, except per share amounts)For the Three Months Ended
    June 30,    		 For the Six Months Ended
    June 30,
      2024   2023   2024   2023 
    Net income attributable to common shareholders$35,260  $46,377  $26,226  $51,545 
    Per diluted share$0.18  $0.24  $0.13  $0.27 
            
    FFO adjustments:       
    Depreciation and amortization of real property$97,897  $94,922  $194,680  $189,714 
    Net gains on sale of real estate (873)  (260)  (873)  (260)
    Our share of partially owned entities:       
    Depreciation and amortization of real property 26,458   26,666   52,621   54,135 
    Net gain on sale of real estate —   (16,545)  —   (16,545)
      123,482   104,783   246,428   227,044 
    Noncontrolling interests' share of above adjustments (10,191)  (7,510)  (20,362)  (16,256)
    FFO adjustments, net$113,291  $97,273  $226,066  $210,788 
            
    FFO attributable to common shareholders$148,551  $143,650  $252,292  $262,333 
    Impact of assumed conversion of dilutive convertible securities 393   409   776   816 
    FFO attributable to common shareholders plus assumed conversions$148,944  $144,059  $253,068  $263,149 
    Per diluted share$0.76  $0.74  $1.29  $1.35 
            
    Reconciliation of weighted average shares outstanding:       
    Weighted average common shares outstanding 190,492   191,468   190,460   191,668 
    Effect of dilutive securities:       
    Share-based payment awards 3,913   32   4,058   23 
    Convertible securities 1,934   3,378   1,887   2,852 
    Denominator for FFO per diluted share 196,339   194,878   196,405   194,543 


    VORNADO REALTY TRUST
    NON-GAAP RECONCILIATIONS - CONTINUED

    Below is a reconciliation of net income (loss) to NOI at share and NOI at share - cash basis for the three and six months ended June 30, 2024 and 2023 and the three months ended March 31, 2024.

    (Amounts in thousands)For the Three Months Ended For the Six Months Ended
    June 30,
     June 30, March 31, 2024
    		 
      2024   2023    2024   2023 
    Net income (loss)$40,099  $62,733  $(6,273) $33,826  $73,931 
    Depreciation and amortization expense 109,774   107,162   108,659   218,433   213,727 
    General and administrative expense 38,475   39,410   37,897   76,372   81,005 
    Transaction related costs and other 3,361   30   653   4,014   688 
    Income from partially owned entities (47,949)  (37,272)  (16,279)  (64,228)  (53,938)
    Interest and other investment income, net (10,511)  (13,153)  (11,724)  (22,235)  (22,737)
    Interest and debt expense 98,401   87,165   90,478   188,879   173,402 
    Net gains on disposition of wholly owned and partially owned assets (16,048)  (936)  —   (16,048)  (8,456)
    Income tax expense 5,284   4,497   6,740   12,024   9,164 
    NOI from partially owned entities 68,298   70,745   70,369   138,667   138,842 
    NOI attributable to noncontrolling interests in consolidated subsidiaries (9,013)  (18,742)  (11,396)  (20,409)  (30,506)
    NOI at share 280,171   301,639   269,124   549,295   575,122 
    Non-cash adjustments for straight-line rents, amortization of acquired below-market leases, net, and other (581)  (5,570)  (1,511)  (2,092)  (518)
    NOI at share - cash basis$279,590  $296,069  $267,613  $547,203  $574,604 


    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 June 30, 2024 compared to June 30, 2023.

    (Amounts in thousands)Total New York THE MART 555
    California
    Street    		 Other
    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 (6,094)  (936)  —   —   (5,158)
    Same store NOI at share for the three months ended June 30, 2024$263,820  $230,947  $16,073  $16,800  $— 
              
    NOI at share for the three months ended June 30, 2023$301,639  $248,366  $16,462  $31,347  $5,464 
    Less NOI at share from:         
    Dispositions (696)  (1,082)  386   —   — 
    Development properties (4,391)  (4,391)  —   —   — 
    Other non-same store income, net (6,730)  (1,266)  —   —   (5,464)
    Same store NOI at share for the three months ended June 30, 2023$289,822  $241,627  $16,848  $31,347  $— 
              
    Decrease in same store NOI at share$(26,002) $(10,680) $(775) $(14,547) $— 
              
    % decrease in same store NOI at share(9.0)% (4.4)% (4.6)% (46.4)%  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 June 30, 2024 compared to June 30, 2023.

    (Amounts in thousands)Total New York THE MART 555 California Street Other
    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 (6,880)  (1,915)  —   —   (4,965)
    Same store NOI at share - cash basis for the three months ended June 30, 2024$264,737  $227,933  $16,848  $19,956  $— 
              
    NOI at share - cash basis for the three months ended June 30, 2023$296,069  $241,569  $16,592  $32,284  $5,624 
    Less NOI at share - cash basis from:         
    Dispositions (860)  (1,337)  477   —   — 
    Development properties (4,554)  (4,554)  —   —   — 
    Other non-same store income, net (7,061)  (1,437)  —   —   (5,624)
    Same store NOI at share - cash basis for the three months ended June 30, 2023$283,594  $234,241  $17,069  $32,284  $— 
              
    Decrease in same store NOI at share - cash basis$(18,857) $(6,308) $(221) $(12,328) $— 
              
    % decrease in same store NOI at share - cash basis(6.6)% (2.7)% (1.3)% (38.2)%  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 six months ended June 30, 2024 compared to June 30, 2023.

    (Amounts in thousands)Total New York THE MART 555 California Street Other
    NOI at share for the six months ended June 30, 2024$549,295  $475,282  $30,546  $33,329  $10,138 
    Less NOI at share from:         
    Dispositions (1,419)  (1,425)  6   —   — 
    Development properties (17,595)  (17,595)  —   —   — 
    Other non-same store income, net (11,910)  (1,772)  —   —   (10,138)
    Same store NOI at share for the six months ended June 30, 2024$518,371  $454,490  $30,552  $33,329  $— 
              
    NOI at share for the six months ended June 30, 2023$575,122  $484,360  $31,871  $48,276  $10,615 
    Less NOI at share from:         
    Dispositions (1,030)  (2,100)  1,070   —   — 
    Development properties (8,722)  (8,722)  —   —   — 
    Other non-same store (income) expense, net (8,146)  2,469   —   —   (10,615)
    Same store NOI at share for the six months ended June 30, 2023$557,224  $476,007  $32,941  $48,276  $— 
              
    Decrease in same store NOI at share$(38,853) $(21,517) $(2,389) $(14,947) $— 
              
    % decrease in same store NOI at share(7.0)% (4.5)% (7.3)% (31.0)%  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 six months ended June 30, 2024 compared to June 30, 2023.

    (Amounts in thousands)Total New York THE MART 555 California Street Other
    NOI at share - cash basis for the six months ended June 30, 2024$547,203  $468,628  $31,784  $36,894  $9,897 
    Less NOI at share - cash basis from:         
    Dispositions (1,419)  (1,425)  6   —   — 
    Development properties (13,323)  (13,323)  —   —   — 
    Other non-same store income, net (13,253)  (3,356)  —   —   (9,897)
    Same store NOI at share - cash basis for the six months ended June 30, 2024$519,208  $450,524  $31,790  $36,894  $— 
              
    NOI at share - cash basis for the six months ended June 30, 2023$574,604  $482,596  $31,267  $50,002  $10,739 
    Less NOI at share - cash basis from:         
    Dispositions (1,263)  (2,514)  1,251   —   — 
    Development properties (8,699)  (8,699)  —   —   — 
    Other non-same store income, net (13,132)  (2,393)  —   —   (10,739)
    Same store NOI at share - cash basis for the six months ended June 30, 2023$551,510  $468,990  $32,518  $50,002  $— 
              
    Decrease in same store NOI at share - cash basis$(32,302) $(18,466) $(728) $(13,108) $— 
              
    % decrease in same store NOI at share - cash basis(5.9)% (3.9)% (2.2)% (26.2)%  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 June 30, 2024 compared to March 31, 2024.

    (Amounts in thousands)Total New York THE MART 555 California Street Other
    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 (6,094)  (936)  —   —   (5,158)
    Same store NOI at share for the three months ended June 30, 2024$263,820  $230,947  $16,073  $16,800  $— 
              
    NOI at share for the three months ended March 31, 2024$269,124  $233,129  $14,486  $16,529  $4,980 
    Less NOI at share from:         
    Dispositions (799)  (792)  (7)  —   — 
    Development properties (7,958)  (7,958)  —   —   — 
    Other non-same store income, net (5,816)  (836)  —   —   (4,980)
    Same store NOI at share for the three months ended March 31, 2024$254,551  $223,543  $14,479  $16,529  $— 
              
    Increase in same store NOI at share$9,269  $7,404  $1,594  $271  $— 
              
    % increase in same store NOI at share 3.6%  3.3%  11.0%  1.6%  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 June 30, 2024 compared to March 31, 2024.

    (Amounts in thousands)Total New York THE MART 555 California Street Other
    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 (6,675)  (1,710)  —   —   (4,965)
    Same store NOI at share - cash basis for the three months ended June 30, 2024$264,942  $228,138  $16,848  $19,956  $— 
              
    NOI at share - cash basis for the three months ended March 31, 2024$267,613  $230,794  $14,949  $16,938  $4,932 
    Less NOI at share - cash basis from:         
    Dispositions (799)  (792)  (7)  —   — 
    Development properties (5,970)  (5,970)  —   —   — 
    Other non-same store income, net (6,013)  (1,081)  —   —   (4,932)
    Same store NOI at share - cash basis for the three months ended March 31, 2024$254,831  $222,951  $14,942  $16,938  $— 
              
    Increase in same store NOI at share - cash basis$10,111  $5,187  $1,906  $3,018  $— 
              
    % increase in same store NOI at share - cash basis 4.0%  2.3%  12.8%  17.8%  0.0%

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