Quarter Ended
NET LOSS attributable to common shareholders for the quarter ended
Net loss attributable to common shareholders for the quarter ended
FUNDS FROM OPERATIONS ("FFO") attributable to common shareholders plus assumed conversions (non-GAAP) for the quarter ended
Year Ended
NET INCOME attributable to common shareholders for the year ended
FFO attributable to common shareholders plus assumed conversions (non-GAAP) for the year ended
The following table reconciles net (loss) income attributable to common shareholders to net income attributable to common shareholders, as adjusted (non-GAAP):
(Amounts in thousands, except per share amounts) | For the Three Months Ended | For the Year Ended | |||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||
Net (loss) income attributable to common shareholders | $ | (61,013 | ) | $ | (493,280 | ) | $ | 43,378 | $ | (408,615 | ) | ||||
Per diluted share | $ | (0.32 | ) | $ | (2.57 | ) | $ | 0.23 | $ | (2.13 | ) | ||||
Certain expense (income) items that impact net (loss) income attributable to common shareholders: | |||||||||||||||
Real estate impairment losses on wholly owned and partially owned assets | $ | 72,664 | $ | 595,488 | $ | 73,289 | $ | 595,488 | |||||||
Our share of (income) loss from real estate fund investments | (13,638 | ) | 463 | (14,379 | ) | (1,671 | ) | ||||||||
After-tax net gain on sale of | (5,786 | ) | (29,773 | ) | (11,959 | ) | (35,858 | ) | |||||||
Credit losses on investments | 8,269 | — | 8,269 | — | |||||||||||
Deferred tax liability on our investment in the | 3,526 | 3,482 | 11,722 | 13,665 | |||||||||||
Change in deferred tax assets related to taxable REIT subsidiaries | 1,926 | (2,971 | ) | (188 | ) | (4,304 | ) | ||||||||
Net gain on contribution of | — | — | (35,968 | ) | — | ||||||||||
After-tax net gain on sale of The Armory Show | — | — | (17,076 | ) | — | ||||||||||
Our share of Alexander's, Inc. ("Alexander's") gain on sale of Rego Park III land parcel | — | — | (16,396 | ) | — | ||||||||||
Other | 8,252 | (15,198 | ) | 10,530 | 8,053 | ||||||||||
75,213 | 551,491 | 7,844 | 575,373 | ||||||||||||
Noncontrolling interests' share of above adjustments and assumed conversion of dilutive potential common shares | (6,160 | ) | (38,257 | ) | 64 | (40,290 | ) | ||||||||
Total of certain expense (income) items that impact net (loss) income attributable to common shareholders | $ | 69,053 | $ | 513,234 | $ | 7,908 | $ | 535,083 | |||||||
Per diluted share (non-GAAP) | $ | 0.36 | $ | 2.67 | $ | 0.04 | $ | 2.79 | |||||||
Net income attributable to common shareholders, as adjusted (non-GAAP) | $ | 8,040 | $ | 19,954 | $ | 51,286 | $ | 126,468 | |||||||
Per diluted share (non-GAAP) | $ | 0.04 | $ | 0.10 | $ | 0.27 | $ | 0.66 |
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 | For the Year Ended | |||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||
FFO attributable to common shareholders plus assumed conversions (non-GAAP)(1) | $ | 121,105 | $ | 176,465 | $ | 503,792 | $ | 638,928 | |||||||
Per diluted share (non-GAAP) | $ | 0.62 | $ | 0.91 | $ | 2.59 | $ | 3.30 | |||||||
Certain (income) expense items that impact FFO attributable to common shareholders plus assumed conversions: | |||||||||||||||
Our share of (income) loss from real estate fund investments | $ | (13,638 | ) | $ | 463 | $ | (14,379 | ) | $ | (1,671 | ) | ||||
After-tax net gain on sale of 220 CPS condominium units and ancillary amenities | (5,786 | ) | (29,773 | ) | (11,959 | ) | (35,858 | ) | |||||||
Credit losses on investments | 8,269 | — | 8,269 | — | |||||||||||
Deferred tax liability on our investment in the | 3,526 | 3,482 | 11,722 | 13,665 | |||||||||||
Change in deferred tax assets related to taxable REIT subsidiaries | 1,926 | (2,971 | ) | (188 | ) | (4,304 | ) | ||||||||
Other | 8,543 | (11,415 | ) | 11,231 | (4,108 | ) | |||||||||
2,840 | (40,214 | ) | 4,696 | (32,276 | ) | ||||||||||
Noncontrolling interests' share of above adjustments | (194 | ) | 2,790 | (337 | ) | 2,240 | |||||||||
Total of certain (income) expense items that impact FFO attributable to common shareholders plus assumed conversions, net | $ | 2,646 | $ | (37,424 | ) | $ | 4,359 | $ | (30,036 | ) | |||||
Per diluted share (non-GAAP) | $ | 0.01 | $ | (0.19 | ) | $ | 0.02 | $ | (0.15 | ) | |||||
FFO attributable to common shareholders plus assumed conversions, as adjusted (non-GAAP) | $ | 123,751 | $ | 139,041 | $ | 508,151 | $ | 608,892 | |||||||
Per diluted share (non-GAAP) | $ | 0.63 | $ | 0.72 | $ | 2.61 | $ | 3.15 |
________________________________ | |
(1) | See page 12 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 months and years ended |
FFO, as
The following table bridges our FFO attributable to common shareholders plus assumed conversions, as adjusted (non-GAAP) for the three months ended
(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 | $ | 139.0 | $ | 0.72 | |||
(Decrease) increase in FFO, as adjusted due to: | |||||||
Development fee pool bonus expense | (6.4 | ) | |||||
Stock compensation expense for the | (6.0 | ) | |||||
Prior period accrual adjustments related to changes in the tax assessed value of THE MART | (4.8 | ) | |||||
FFO from sold properties | (2.9 | ) | |||||
Change in interest expense, net of interest income | 1.9 | ||||||
Other, net | 2.1 | ||||||
(16.1 | ) | ||||||
Noncontrolling interests' share of above items and impact of assumed conversions of convertible securities | 0.9 | ||||||
Net decrease | (15.2 | ) | (0.09 | ) | |||
FFO attributable to common shareholders plus assumed conversions, as adjusted (non-GAAP) for the three months ended | $ | 123.8 | $ | 0.63 |
See page 12 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 months and years ended
Dividends/Share Repurchase Program:
On
On
During the year ended
On
Pursuant to the agreements,
In addition, we entered into a joint venture with Rudin (the “Vornado/Rudin JV”) which was formed to purchase
From
- acquire a 60% interest in a joint venture with the Vornado/Rudin JV that would value the Site at
$1 .2 billion ($900,000,000 to Vornado and$300,000,000 to Rudin) and build a new 1,700,000 square foot office tower (the “Project”) pursuant to East Midtown Subdistrict zoning with the Vornado/Rudin JV as developer. KG would own 60% of the joint venture and the Vornado/Rudin JV would own 40% (with Vornado owning 36% and Rudin owning 4% of the joint venture along with a$250,000,000 preferred equity interest in the Vornado/Rudin JV).- at the joint venture formation,
Citadel or its affiliates will execute a pre-negotiated 15-year anchor lease with renewal options for approximately 850,000 square feet (with expansion and contraction rights) at the Project for its primary office inNew York City ; - the rent for Citadel’s space will be determined by a formula based on a percentage return (that adjusts based on the actual cost of capital) on the total Project cost;
- the master leases will terminate at the scheduled commencement of demolition;
- at the joint venture formation,
- or, exercise an option to purchase the Site for
$1 .4 billion ($1 .085 billion to Vornado and$315,000,000 to Rudin), in which case the Vornado/Rudin JV would not participate in the new development.
Further, the Vornado/Rudin JV will have the option from
Sunset Pier 94 Studios Joint Venture:
On
- We contributed our
Pier 94 leasehold interest to the joint venture in exchange for a 49.9% common equity interest and an initial capital account of$47,944,000 , comprised of (i) the$40,000,000 value of ourPier 94 leasehold interest contribution and (ii) a$7,994,000 credit for pre-development costs incurred. Hudson Pacific Properties (“HPP”) and Blackstone Inc. (together, “HPP/BX”) received an aggregate 50.1% common equity interest in Pier 94 JV and an initial capital account of$22,976,000 in exchange for (i) a$15,000,000 cash contribution upon the joint venture’s formation and (ii) a$7,976,000 credit for pre-development costs incurred. HPP/BX will fund 100% of cash contributions until such time that its capital account is equal to Vornado’s, after which equity will be funded in accordance with each partner’s respective ownership interest. - The lease of
Pier 94 with theCity of New York was amended and restated to allow for the contribution to Pier 94 JV and to removePier 92 from the lease’s demised premises. The amended and restated lease expires in 2060 with five 10-year renewal options. - Pier 94 JV closed on a
$183,200,000 construction loan facility ($100,000 outstanding as ofDecember 31, 2023 ) which bears interest at SOFR plus 4.75% and matures inSeptember 2025 , with one one-year as-of-right extension option and two one-year extension options subject to certain conditions. VRLP and the other partners provided a joint and several completion guarantee.
The development cost of the project is estimated to be
Upon contribution of the
Dispositions:
Alexander's
On
The Armory Show
On
Manhattan Retail Properties Sale
On
220 CPS
During the year ended
Financings:
On
On
On
On
On
Interest Rate Swap and Cap Arrangements
We entered into the following interest rate swap and cap arrangements during the year ended
(Amounts in thousands) | Notional Amount (at share) | All-In Swapped Rate | Expiration Date | Variable Rate Spread | ||||||
Interest rate swaps: | ||||||||||
$ | 840,000 | 6.03 | % | 05/26 | S+205 | |||||
PENN 11 (effective 03/24)(1) | 250,000 | 6.34 | % | 10/25 | S+206 | |||||
Unsecured term loan(2) | 150,000 | 5.12 | % | 07/25 | S+129 | |||||
Index Strike Rate | ||||||||||
Interest rate caps: | ||||||||||
$ | 665,000 | 1.00 | % | 11/25 | S+162 | |||||
One | 525,000 | 3.89 | % | 03/25 | S+122 | |||||
259,925 | 4.00 | % | 05/24 | S+111 | ||||||
162,000 | 6.00 | % | 06/24 | Prime + 0 | ||||||
75,000 | 5.00 | % | 02/26 | S+215 | ||||||
71,088 | 4.50 | % | 06/25 | S+200 |
________________________________ | |
(1) | The |
(2) | In addition to the swap disclosed above, the unsecured term loan, which matures in |
(3) | In connection with the arrangement, we made a |
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
For the Three Months Ended
- 840,000 square feet of
New York Office space (475,000 square feet at share) at an initial rent of$100.33 per square foot and a weighted average lease term of 11.2 years. The changes in the GAAP and cash mark-to-market rent on the 449,000 square feet of second generation space were positive 3.9% and negative 9.4%, respectively. Tenant improvements and leasing commissions were$11.41 per square foot per annum, or 11.4% of initial rent. - 41,000 square feet of New York Retail space (39,000 square feet at share) at an initial rent of
$131.01 per square foot and a weighted average lease term of 11.1 years. The changes in the GAAP and cash mark-to-market rent on the 19,000 square feet of second generation space were positive 63.5% and positive 55.4%, respectively. Tenant improvements and leasing commissions were$29.58 per square foot per annum, or 22.6% of initial rent. - 161,000 square feet at THE MART (all at share) at an initial rent of
$49.89 per square foot and a weighted average lease term of 8.7 years. The changes in the GAAP and cash mark-to-market rent on the 132,000 square feet of second generation space were negative 0.5% and negative 5.7%, respectively. Tenant improvements and leasing commissions were$13.62 per square foot per annum, or 27.3% of initial rent.
For the Year Ended
- 2,133,000 square feet of
New York Office space (1,661,000 square feet at share) at an initial rent of$98.66 per square foot and a weighted average lease term of 10.0 years. The changes in the GAAP and cash mark-to-market rent on the 1,476,000 square feet of second generation space were positive 6.2% and negative 2.0%, respectively. Tenant improvements and leasing commissions were$7.44 per square foot per annum, or 7.5% of initial rent. - 299,000 square feet of New York Retail space (239,000 square feet at share) at an initial rent of
$118.47 per square foot and a weighted average lease term of 6.5 years. The changes in the GAAP and cash mark-to-market rent on the 131,000 square feet of second generation space were positive 20.7% and positive 18.8%, respectively. Tenant improvements and leasing commissions were$21.90 per square foot per annum, or 18.5% of initial rent. - 337,000 square feet at THE MART (332,000 square feet at share) at an initial rent of
$52.97 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 244,000 square feet of second generation space were negative 3.3% and negative 7.8%, respectively. Tenant improvements and leasing commissions were$11.44 per square foot per annum, or 21.6% of initial rent. - 10,000 square feet at
555 California Street (7,000 square feet at share) at an initial rent of$134.70 per square foot and a weighted average lease term of 5.9 years. The changes in the GAAP and cash mark-to-market rent on the 4,000 square feet of second generation space were positive 12.8% and positive 2.4%, respectively. Tenant improvements and leasing commissions were$22.92 per square foot per annum, or 17.0% of initial rent.
Occupancy:
(At Vornado's share) | THE MART | |||||||||||||
Total | Office | Retail | ||||||||||||
Occupancy as of | 89.4 | % | 90.7 | % | 74.9 | % | 79.2 | % | 94.5 | % |
Same Store Net Operating Income ("NOI") At Share:
Total | THE MART(1) | ||||||||||
Same store NOI at share % (decrease) increase(2): | |||||||||||
Three months ended | (1.6)% | 0.4 | % | (32.5)% | 8.9 | % | |||||
Year ended | 0.4 | % | 2.2 | % | (34.8)% | 26.3 | % | (3) | |||
Three months ended | 0.5 | % | 0.3 | % | (5.7)% | 9.4 | % | ||||
Same store NOI at share - cash basis % (decrease) increase(2): | |||||||||||
Three months ended | (1.0)% | 2.0 | % | (34.0)% | 3.4 | % | |||||
Year ended | 0.6 | % | 2.8 | % | (37.2)% | 26.6 | % | (3) | |||
Three months ended | 2.6 | % | 2.9 | % | (3.1)% | 4.1 | % |
________________________________ | |
(1) | 2022 includes prior period accrual adjustments related to changes in the tax-assessed value of THE MART. |
(2) | See pages 14 through 19 for same store NOI at share and same store NOI at share - cash basis reconciliations. |
(3) | Includes our |
NOI At Share:
The elements of our
(Amounts in thousands) | For the Three Months Ended | For the Year Ended | ||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||
NOI at share: | ||||||||||||||
Office(1) | $ | 182,769 | $ | 184,045 | $ | 183,919 | $ | 727,000 | $ | 718,686 | ||||
Retail | 47,378 | 50,083 | 46,559 | 188,561 | 205,753 | |||||||||
Residential | 5,415 | 4,978 | 5,570 | 21,910 | 19,600 | |||||||||
Alexander's | 12,013 | 9,489 | 9,586 | 40,098 | 37,469 | |||||||||
Total | 247,575 | 248,595 | 245,634 | 977,569 | 981,508 | |||||||||
Other: | ||||||||||||||
THE MART(2) | 14,516 | 21,276 | 15,132 | 61,519 | 96,906 | |||||||||
18,125 | 16,641 | 16,564 | 82,965 | 65,692 | ||||||||||
Other investments | 6,880 | 5,243 | 3,665 | 21,160 | 17,942 | |||||||||
Total Other | 39,521 | 43,160 | 35,361 | 165,644 | 180,540 | |||||||||
NOI at share | $ | 287,096 | $ | 291,755 | $ | 280,995 | $ | 1,143,213 | $ | 1,162,048 |
________________________________
See notes below.
NOI At Share - Cash Basis:
The elements of our
(Amounts in thousands) | For the Three Months Ended | For the Year Ended | ||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||
NOI at share - cash basis: | ||||||||||||||
Office(1) | $ | 183,742 | $ | 182,648 | $ | 179,838 | $ | 726,914 | $ | 715,407 | ||||
Retail | 46,491 | 46,168 | 45,451 | 180,932 | 188,846 | |||||||||
Residential | 5,137 | 4,660 | 5,271 | 20,588 | 18,214 | |||||||||
Alexander's | 11,059 | 10,236 | 10,284 | 41,435 | 40,532 | |||||||||
Total | 246,429 | 243,712 | 240,844 | 969,869 | 962,999 | |||||||||
Other: | ||||||||||||||
THE MART(2) | 15,511 | 23,163 | 15,801 | 62,579 | 101,912 | |||||||||
18,265 | 17,672 | 17,552 | 85,819 | 67,813 | ||||||||||
Other investments | 7,012 | 5,052 | 3,818 | 21,569 | 18,344 | |||||||||
Total Other | 40,788 | 45,887 | 37,171 | 169,967 | 188,069 | |||||||||
NOI at share - cash basis | $ | 287,217 | $ | 289,599 | $ | 278,015 | $ | 1,139,836 | $ | 1,151,068 |
________________________________ | |
(1) | Includes |
(2) | 2022 includes prior period accrual adjustments related to changes in the tax-assessed value of THE MART. |
(3) | 2023 includes our |
(Amounts in thousands, except square feet) | |||||||||||||||||
(at Vornado’s share) | Projected Incremental Cash Yield | ||||||||||||||||
Property Rentable Sq. Ft. | Budget | Cash Amount Expended | Remaining Expenditures | Stabilization Year | |||||||||||||
PENN 2 | 1,795,000 | $ | 750,000 | $ | 638,959 | $ | 111,041 | 2026 | 9.5% | ||||||||
Districtwide Improvements | N/A | 100,000 | 47,424 | 52,576 | N/A | N/A | |||||||||||
850,000 | (1) | 686,383 | 163,617 | ||||||||||||||
266,000 | 125,000 | (2) | 7,994 | 117,006 | 2026 | 10.3% | |||||||||||
Total Active Development Projects | $ | 975,000 | $ | 694,377 | $ | 280,623 |
________________________________ | |
(1) | Excluding debt and equity carry. |
(2) | Represents our 49.9% share of the |
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
Contact
(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.
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, including the timing and form of any dividend payments, and the amount and form of potential share repurchases and/or asset sales. 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
CONSOLIDATED BALANCE SHEETS | |||||||||||
(Amounts in thousands) | As of | Increase (Decrease) | |||||||||
ASSETS | |||||||||||
Real estate, at cost: | |||||||||||
Land | $ | 2,436,221 | $ | 2,451,828 | $ | (15,607 | ) | ||||
Buildings and improvements | 9,952,954 | 9,804,204 | 148,750 | ||||||||
Development costs and construction in progress | 1,281,076 | 933,334 | 347,742 | ||||||||
Leasehold improvements and equipment | 130,953 | 125,389 | 5,564 | ||||||||
Total | 13,801,204 | 13,314,755 | 486,449 | ||||||||
Less accumulated depreciation and amortization | (3,752,827 | ) | (3,470,991 | ) | (281,836 | ) | |||||
Real estate, net | 10,048,377 | 9,843,764 | 204,613 | ||||||||
Right-of-use assets | 680,044 | 684,380 | (4,336 | ) | |||||||
Cash, cash equivalents, restricted cash and investments in | |||||||||||
Cash and cash equivalents | 997,002 | 889,689 | 107,313 | ||||||||
Restricted cash | 264,582 | 131,468 | 133,114 | ||||||||
Investments in | — | 471,962 | (471,962 | ) | |||||||
Total | 1,261,584 | 1,493,119 | (231,535 | ) | |||||||
Tenant and other receivables | 69,543 | 81,170 | (11,627 | ) | |||||||
Investments in partially owned entities | 2,610,558 | 2,665,073 | (54,515 | ) | |||||||
220 CPS condominium units ready for sale | 35,941 | 43,599 | (7,658 | ) | |||||||
Receivable arising from the straight-lining of rents | 701,666 | 694,972 | 6,694 | ||||||||
Deferred leasing costs, net | 355,010 | 373,555 | (18,545 | ) | |||||||
Identified intangible assets, net | 127,082 | 139,638 | (12,556 | ) | |||||||
Other assets | 297,860 | 474,105 | (176,245 | ) | |||||||
Total assets | $ | 16,187,665 | $ | 16,493,375 | $ | (305,710 | ) | ||||
LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND EQUITY | |||||||||||
Liabilities: | |||||||||||
Mortgages payable, net | $ | 5,688,020 | $ | 5,829,018 | $ | (140,998 | ) | ||||
Senior unsecured notes, net | 1,193,873 | 1,191,832 | 2,041 | ||||||||
Unsecured term loan, net | 794,559 | 793,193 | 1,366 | ||||||||
Unsecured revolving credit facilities | 575,000 | 575,000 | — | ||||||||
Lease liabilities | 732,859 | 735,969 | (3,110 | ) | |||||||
Accounts payable and accrued expenses | 411,044 | 450,881 | (39,837 | ) | |||||||
Deferred revenue | 32,199 | 39,882 | (7,683 | ) | |||||||
Deferred compensation plan | 105,245 | 96,322 | 8,923 | ||||||||
Other liabilities | 311,132 | 268,166 | 42,966 | ||||||||
Total liabilities | 9,843,931 | 9,980,263 | (136,332 | ) | |||||||
Redeemable noncontrolling interests | 638,448 | 436,732 | 201,716 | ||||||||
Shareholders' equity | 5,509,064 | 5,839,728 | (330,664 | ) | |||||||
Noncontrolling interests in consolidated subsidiaries | 196,222 | 236,652 | (40,430 | ) | |||||||
Total liabilities, redeemable noncontrolling interests and equity | $ | 16,187,665 | $ | 16,493,375 | $ | (305,710 | ) |
OPERATING RESULTS | |||||||||||||||
(Amounts in thousands, except per share amounts) | For the Three Months Ended | For the Year Ended | |||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||
Revenues | $ | 441,886 | $ | 446,940 | $ | 1,811,163 | $ | 1,799,995 | |||||||
Net (loss) income | $ | (100,613 | ) | $ | (525,002 | ) | $ | 32,888 | $ | (382,612 | ) | ||||
Less net loss (income) attributable to noncontrolling interests in: | |||||||||||||||
Consolidated subsidiaries | 49,717 | 10,493 | 75,967 | 5,737 | |||||||||||
Operating Partnership | 5,412 | 36,758 | (3,361 | ) | 30,376 | ||||||||||
Net (loss) income attributable to Vornado | (45,484 | ) | (477,751 | ) | 105,494 | (346,499 | ) | ||||||||
Preferred share dividends | (15,529 | ) | (15,529 | ) | (62,116 | ) | (62,116 | ) | |||||||
Net (loss) income attributable to common shareholders | $ | (61,013 | ) | $ | (493,280 | ) | $ | 43,378 | $ | (408,615 | ) | ||||
(Loss) income per common share - basic: | |||||||||||||||
Net (loss) income per common share | $ | (0.32 | ) | $ | (2.57 | ) | $ | 0.23 | $ | (2.13 | ) | ||||
Weighted average shares outstanding | 190,361 | 191,831 | 191,005 | 191,775 | |||||||||||
(Loss) income per common share - diluted: | |||||||||||||||
Net (loss) income per common share | $ | (0.32 | ) | $ | (2.57 | ) | $ | 0.23 | $ | (2.13 | ) | ||||
Weighted average shares outstanding | 190,361 | 191,831 | 191,856 | 191,775 | |||||||||||
FFO attributable to common shareholders plus assumed conversions (non-GAAP) | $ | 121,105 | $ | 176,465 | $ | 503,792 | $ | 638,928 | |||||||
Per diluted share (non-GAAP) | $ | 0.62 | $ | 0.91 | $ | 2.59 | $ | 3.30 | |||||||
FFO attributable to common shareholders plus assumed conversions, as adjusted (non-GAAP) | $ | 123,751 | $ | 139,041 | $ | 508,151 | $ | 608,892 | |||||||
Per diluted share (non-GAAP) | $ | 0.63 | $ | 0.72 | $ | 2.61 | $ | 3.15 | |||||||
Weighted average shares used in determining FFO attributable to common shareholders plus assumed conversions per diluted share | 195,291 | 194,080 | 194,324 | 193,570 |
FFO is computed in accordance with the definition adopted by the
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 | For the Year Ended | |||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||
Net (loss) income attributable to common shareholders | $ | (61,013 | ) | $ | (493,280 | ) | $ | 43,378 | $ | (408,615 | ) | ||||
Per diluted share | $ | (0.32 | ) | $ | (2.57 | ) | $ | 0.23 | $ | (2.13 | ) | ||||
FFO adjustments: | |||||||||||||||
Depreciation and amortization of real property | $ | 98,085 | $ | 121,900 | $ | 385,608 | $ | 456,920 | |||||||
Real estate impairment losses | 22,206 | (1) | 19,098 | 22,831 | (1) | 19,098 | |||||||||
Net gains on sale of real estate | — | (30,397 | ) | (53,305 | ) | (58,751 | ) | ||||||||
Proportionate share of adjustments to equity in net (loss) income of partially owned entities to arrive at FFO: | |||||||||||||||
Depreciation and amortization of real property | 27,188 | 32,243 | 108,088 | 130,647 | |||||||||||
Net gain on sale of real estate | — | — | (16,545 | ) | (169 | ) | |||||||||
Real estate impairment losses | 50,458 | (2) | 576,390 | 50,458 | (2) | 576,390 | |||||||||
197,937 | 719,234 | 497,135 | 1,124,135 | ||||||||||||
Noncontrolling interests' share of above adjustments | (16,207 | ) | (49,894 | ) | (38,363 | ) | (77,912 | ) | |||||||
FFO adjustments, net | $ | 181,730 | $ | 669,340 | $ | 458,772 | $ | 1,046,223 | |||||||
FFO attributable to common shareholders | $ | 120,717 | $ | 176,060 | $ | 502,150 | $ | 637,608 | |||||||
Impact of assumed conversion of dilutive convertible securities | 388 | 405 | 1,642 | 1,320 | |||||||||||
FFO attributable to common shareholders plus assumed conversions | $ | 121,105 | $ | 176,465 | $ | 503,792 | $ | 638,928 | |||||||
Per diluted share | $ | 0.62 | $ | 0.91 | $ | 2.59 | $ | 3.30 | |||||||
Reconciliation of weighted average shares outstanding: | |||||||||||||||
Weighted average common shares outstanding | 190,361 | 191,831 | 191,005 | 191,775 | |||||||||||
Effect of dilutive securities: | |||||||||||||||
Convertible securities | 2,073 | 2,182 | 2,468 | 1,545 | |||||||||||
Share-based payment awards | 2,857 | 67 | 851 | 250 | |||||||||||
Denominator for FFO per diluted share | 195,291 | 194,080 | 194,324 | 193,570 |
________________________________ | |
(1) | Net of |
(2) | Includes a |
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 months and years ended
(Amounts in thousands) | For the Three Months Ended | For the Year Ended | |||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||
Net (loss) income | $ | (100,613 | ) | $ | (525,002 | ) | $ | 59,570 | $ | 32,888 | $ | (382,612 | ) | ||||||
Depreciation and amortization expense | 110,197 | 133,871 | 110,349 | 434,273 | 504,502 | ||||||||||||||
General and administrative expense | 46,040 | 31,439 | 35,838 | 162,883 | 133,731 | ||||||||||||||
Impairment losses, transaction related costs and other | 49,190 | 26,761 | 813 | 50,691 | 31,722 | ||||||||||||||
Loss (income) from partially owned entities | 33,518 | 545,126 | (18,269 | ) | (38,689 | ) | 461,351 | ||||||||||||
Loss (income) from real estate fund investments | 72 | 1,880 | (1,783 | ) | (1,590 | ) | (3,541 | ) | |||||||||||
Interest and other investment income, net | (5,905 | ) | (10,587 | ) | (12,934 | ) | (41,697 | ) | (19,869 | ) | |||||||||
Interest and debt expense | 87,695 | 88,242 | 88,126 | 349,223 | 279,765 | ||||||||||||||
Net gains on disposition of wholly owned and partially owned assets | (6,607 | ) | (65,241 | ) | (56,136 | ) | (71,199 | ) | (100,625 | ) | |||||||||
Income tax expense | 8,374 | 6,974 | 11,684 | 29,222 | 21,660 | ||||||||||||||
NOI from partially owned entities | 74,819 | 77,221 | 72,100 | 285,761 | 305,993 | ||||||||||||||
NOI attributable to noncontrolling interests in consolidated subsidiaries | (9,684 | ) | (18,929 | ) | (8,363 | ) | (48,553 | ) | (70,029 | ) | |||||||||
NOI at share | 287,096 | 291,755 | 280,995 | 1,143,213 | 1,162,048 | ||||||||||||||
Non-cash adjustments for straight-line rents, amortization of acquired below-market leases, net, and other | 121 | (2,156 | ) | (2,980 | ) | (3,377 | ) | (10,980 | ) | ||||||||||
NOI at share - cash basis | $ | 287,217 | $ | 289,599 | $ | 278,015 | $ | 1,139,836 | $ | 1,151,068 |
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.
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
(Amounts in thousands) | Total | THE MART | Other | ||||||||||||||||
NOI at share for the three months ended | $ | 287,096 | $ | 247,575 | $ | 14,516 | $ | 18,125 | $ | 6,880 | |||||||||
Less NOI at share from: | |||||||||||||||||||
Dispositions | 31 | 21 | 10 | — | — | ||||||||||||||
Development properties | (6,884 | ) | (6,884 | ) | — | — | — | ||||||||||||
Other non-same store income, net | (7,480 | ) | (600 | ) | — | — | (6,880 | ) | |||||||||||
Same store NOI at share for the three months ended | $ | 272,763 | $ | 240,112 | $ | 14,526 | $ | 18,125 | $ | — | |||||||||
NOI at share for the three months ended | $ | 291,755 | $ | 248,595 | $ | 21,276 | $ | 16,641 | $ | 5,243 | |||||||||
Less NOI at share from: | |||||||||||||||||||
Dispositions | (2,371 | ) | (2,616 | ) | 245 | — | — | ||||||||||||
Development properties | (3,837 | ) | (3,837 | ) | — | — | — | ||||||||||||
Other non-same store income, net | (8,324 | ) | (3,081 | ) | — | — | (5,243 | ) | |||||||||||
Same store NOI at share for the three months ended | $ | 277,223 | $ | 239,061 | $ | 21,521 | $ | 16,641 | $ | — | |||||||||
(Decrease) increase in same store NOI at share | $ | (4,460 | ) | $ | 1,051 | $ | (6,995 | ) | $ | 1,484 | $ | — | |||||||
% (decrease) increase in same store NOI at share | (1.6)% | 0.4 | % | (32.5)% | 8.9 | % | 0.0 | % |
NON-GAAP RECONCILIATIONS - CONTINUED
Below are reconciliations of NOI at share - cash basis to same store NOI at share - cash basis for our
(Amounts in thousands) | Total | THE MART | Other | ||||||||||||||||
NOI at share - cash basis for the three months ended | $ | 287,217 | $ | 246,429 | $ | 15,511 | $ | 18,265 | $ | 7,012 | |||||||||
Less NOI at share - cash basis from: | |||||||||||||||||||
Dispositions | 31 | 21 | 10 | — | — | ||||||||||||||
Development properties | (6,073 | ) | (6,073 | ) | — | — | — | ||||||||||||
Other non-same store income, net | (8,959 | ) | (1,947 | ) | — | — | (7,012 | ) | |||||||||||
Same store NOI at share - cash basis for the three months ended | $ | 272,216 | $ | 238,430 | $ | 15,521 | $ | 18,265 | $ | — | |||||||||
NOI at share - cash basis for the three months ended | $ | 289,599 | $ | 243,712 | $ | 23,163 | $ | 17,672 | $ | 5,052 | |||||||||
Less NOI at share - cash basis from: | |||||||||||||||||||
Dispositions | (2,119 | ) | (2,455 | ) | 336 | — | — | ||||||||||||
Development properties | (4,248 | ) | (4,248 | ) | — | — | — | ||||||||||||
Other non-same store income, net | (8,233 | ) | (3,181 | ) | — | — | (5,052 | ) | |||||||||||
Same store NOI at share - cash basis for the three months ended | $ | 274,999 | $ | 233,828 | $ | 23,499 | $ | 17,672 | $ | — | |||||||||
(Decrease) increase in same store NOI at share - cash basis | $ | (2,783 | ) | $ | 4,602 | $ | (7,978 | ) | $ | 593 | $ | — | |||||||
% (decrease) increase in same store NOI at share - cash basis | (1.0)% | 2.0 | % | (34.0)% | 3.4 | % | 0.0 | % |
NON-GAAP RECONCILIATIONS - CONTINUED
Below are reconciliations of NOI at share to same store NOI at share for our
(Amounts in thousands) | Total | THE MART | Other | ||||||||||||||||
NOI at share for the year ended | $ | 1,143,213 | $ | 977,569 | $ | 61,519 | $ | 82,965 | $ | 21,160 | |||||||||
Less NOI at share from: | |||||||||||||||||||
Dispositions | (1,270 | ) | (1,556 | ) | 286 | — | — | ||||||||||||
Development properties | (26,748 | ) | (26,748 | ) | — | — | — | ||||||||||||
Other non-same store (income) expense, net | (20,399 | ) | 761 | — | — | (21,160 | ) | ||||||||||||
Same store NOI at share for the year ended | $ | 1,094,796 | $ | 950,026 | $ | 61,805 | $ | 82,965 | $ | — | |||||||||
NOI at share for the year ended | $ | 1,162,048 | $ | 981,508 | $ | 96,906 | $ | 65,692 | $ | 17,942 | |||||||||
Less NOI at share from: | |||||||||||||||||||
Dispositions | (15,205 | ) | (13,158 | ) | (2,047 | ) | — | — | |||||||||||
Development properties | (24,088 | ) | (24,088 | ) | — | — | — | ||||||||||||
Other non-same store income, net | (32,838 | ) | (14,896 | ) | — | — | (17,942 | ) | |||||||||||
Same store NOI at share for the year ended | $ | 1,089,917 | $ | 929,366 | $ | 94,859 | $ | 65,692 | $ | — | |||||||||
Increase (decrease) in same store NOI at share | $ | 4,879 | $ | 20,660 | $ | (33,054 | ) | $ | 17,273 | $ | — | ||||||||
% increase (decrease) in same store NOI at share | 0.4 | % | 2.2 | % | (34.8)% | 26.3 | % | 0.0 | % |
NON-GAAP RECONCILIATIONS - CONTINUED
Below are reconciliations of NOI at share - cash basis to same store NOI at share - cash basis for our
(Amounts in thousands) | Total | THE MART | Other | ||||||||||||||||
NOI at share - cash basis for the year ended | $ | 1,139,836 | $ | 969,869 | $ | 62,579 | $ | 85,819 | $ | 21,569 | |||||||||
Less NOI at share - cash basis from: | |||||||||||||||||||
Dispositions | (1,793 | ) | (2,016 | ) | 223 | — | — | ||||||||||||
Development properties | (23,661 | ) | (23,661 | ) | — | — | — | ||||||||||||
Other non-same store income, net | (29,547 | ) | (7,978 | ) | — | — | (21,569 | ) | |||||||||||
Same store NOI at share - cash basis for the year ended | $ | 1,084,835 | $ | 936,214 | $ | 62,802 | $ | 85,819 | $ | — | |||||||||
NOI at share - cash basis for the year ended | $ | 1,151,068 | $ | 962,999 | $ | 101,912 | $ | 67,813 | $ | 18,344 | |||||||||
Less NOI at share - cash basis from: | |||||||||||||||||||
Dispositions | (15,122 | ) | (13,256 | ) | (1,866 | ) | — | — | |||||||||||
Development properties | (23,567 | ) | (23,567 | ) | — | — | — | ||||||||||||
Other non-same store income, net | (33,665 | ) | (15,321 | ) | — | — | (18,344 | ) | |||||||||||
Same store NOI at share - cash basis for the year ended | $ | 1,078,714 | $ | 910,855 | $ | 100,046 | $ | 67,813 | $ | — | |||||||||
Increase (decrease) in same store NOI at share - cash basis | $ | 6,121 | $ | 25,359 | $ | (37,244 | ) | $ | 18,006 | $ | — | ||||||||
% increase (decrease) in same store NOI at share - cash basis | 0.6 | % | 2.8 | % | (37.2)% | 26.6 | % | 0.0 | % |
NON-GAAP RECONCILIATIONS - CONTINUED
Below are reconciliations of NOI at share to same store NOI at share for our
(Amounts in thousands) | Total | THE MART | Other | ||||||||||||||||
NOI at share for the three months ended | $ | 287,096 | $ | 247,575 | $ | 14,516 | $ | 18,125 | $ | 6,880 | |||||||||
Less NOI at share from: | |||||||||||||||||||
Dispositions | 31 | 21 | 10 | — | — | ||||||||||||||
Development properties | (6,884 | ) | (6,884 | ) | — | — | — | ||||||||||||
Other non-same store income, net | (7,120 | ) | (240 | ) | — | — | (6,880 | ) | |||||||||||
Same store NOI at share for the three months ended | $ | 273,123 | $ | 240,472 | $ | 14,526 | $ | 18,125 | $ | — | |||||||||
NOI at share for the three months ended | $ | 280,995 | $ | 245,634 | $ | 15,132 | $ | 16,564 | $ | 3,665 | |||||||||
Less NOI at share from: | |||||||||||||||||||
Dispositions | (164 | ) | (440 | ) | 276 | — | — | ||||||||||||
Development properties | (4,724 | ) | (4,724 | ) | — | — | — | ||||||||||||
Other non-same store income, net | (4,414 | ) | (749 | ) | — | — | (3,665 | ) | |||||||||||
Same store NOI at share for the three months ended | $ | 271,693 | $ | 239,721 | $ | 15,408 | $ | 16,564 | $ | — | |||||||||
Increase (decrease) in same store NOI at share | $ | 1,430 | $ | 751 | $ | (882 | ) | $ | 1,561 | $ | — | ||||||||
% increase (decrease) in same store NOI at share | 0.5 | % | 0.3 | % | (5.7)% | 9.4 | % | 0.0 | % |
NON-GAAP RECONCILIATIONS - CONTINUED
Below are reconciliations of NOI at share - cash basis to same store NOI at share - cash basis for our
(Amounts in thousands) | Total | THE MART | Other | ||||||||||||||||
NOI at share - cash basis for the three months ended | $ | 287,217 | $ | 246,429 | $ | 15,511 | $ | 18,265 | $ | 7,012 | |||||||||
Less NOI at share - cash basis from: | |||||||||||||||||||
Dispositions | 31 | 21 | 10 | — | — | ||||||||||||||
Development properties | (6,073 | ) | (6,073 | ) | — | — | — | ||||||||||||
Other non-same store income, net | (8,599 | ) | (1,587 | ) | — | — | (7,012 | ) | |||||||||||
Same store NOI at share - cash basis for the three months ended | $ | 272,576 | $ | 238,790 | $ | 15,521 | $ | 18,265 | $ | — | |||||||||
NOI at share - cash basis for the three months ended | $ | 278,015 | $ | 240,844 | $ | 15,801 | $ | 17,552 | $ | 3,818 | |||||||||
Less NOI at share - cash basis from: | |||||||||||||||||||
Dispositions | (274 | ) | (487 | ) | 213 | — | — | ||||||||||||
Development properties | (4,131 | ) | (4,131 | ) | — | — | — | ||||||||||||
Other non-same store income, net | (8,019 | ) | (4,201 | ) | — | — | (3,818 | ) | |||||||||||
Same store NOI at share - cash basis for the three months ended | $ | 265,591 | $ | 232,025 | $ | 16,014 | $ | 17,552 | $ | — | |||||||||
Increase (decrease) in same store NOI at share - cash basis | $ | 6,985 | $ | 6,765 | $ | (493 | ) | $ | 713 | $ | — | ||||||||
% increase (decrease) in same store NOI at share - cash basis | 2.6 | % | 2.9 | % | (3.1)% | 4.1 | % | 0.0 | % |
Source:
2024 GlobeNewswire, Inc., source