VORNADO REALTY TRUST 
By VORNADO REALTY TRUST (NYSE: VNO) today reported:
Second Quarter 2007 Results
NET INCOME applicable to common shares for the quarter ended June 30, 2007 was $151.6 million, or $0.96 per diluted share, versus $148.8 million, or $0.99 per diluted share, for the quarter ended June 30, 2006. Net income for the quarters ended June 30, 2007 and 2006 includes certain items that affect comparability which are listed in the table below. Net income for the quarter ended June 30, 2006 also includes a $17.6 million net gain on sale of real estate. The aggregate of these items, net of minority interest, increased net income applicable to common shares for the quarter ended June 30, 2007 by $63.6 million, or $0.39 per diluted share and increased net income applicable to common shares for the quarter ended June 30, 2006 by $55.8 million, or $0.36 per diluted share.
FUNDS FROM OPERATIONS applicable to common shares plus assumed conversions (?FFO?) for the quarter ended June 30, 2007 was $281.7 million, or $1.72 per diluted share, compared to $230.4 million, or $1.49 per diluted share, for the quarter ended June 30, 2006. Adjusting FFO for certain items that affect comparability which are listed in the table below, FFO for the quarters ended June 30, 2007 and 2006 was $218.6 million and $190.5 million, or $1.33 and $1.23 per share, respectively.
| (Amounts in thousands, except per share amounts) | For the Quarter Ended June 30, | ||||||
| 2007 | 2006 | ||||||
| FFO applicable to common shares plus assumed conversions (1) | $ | 281,741 | $ | 230,430 | |||
| Per Share | $ | 1.72 | $ | 1.49 | |||
| Items that affect comparability (income) expense: | |||||||
| Derivatives: | |||||||
| McDonalds shares | $ | (71,390 | ) | $ | 14,515 | ||
| GMH Warrants | ? | (4,105 | ) | ||||
| Other | (684 | ) | ? | ||||
| 32.8% share of Alexander's: | |||||||
| Stock appreciation rights | (1,222 | ) | (4,836 | ) | |||
| Net gain on sale of 731 Lexington Avenue condominiums | ? | (2,722 | ) | ||||
| Other: | |||||||
| India Property Fund organization costs | 1,677 | ? | |||||
| Net gain on sale of Sears Canada common shares | ? | (55,438 | ) | ||||
| Prepayment penalties and write-off of unamortized financing costs | ? | 4,933 | |||||
| H Street litigation costs | ? | 2,093 | |||||
| Other, net | 2,131 | 1,415 | |||||
| (69,488 | ) | (44,145 | ) | ||||
| Minority limited partners' share of above adjustments | 6,347 | 4,237 | |||||
| $ | (63,141 | ) | $ | (39,908 | ) | ||
| Per share | $ | (0.39 | ) | $ | (0.26 | ) | |
| FFO as adjusted for comparability | $ | 218,600 | $ | 190,522 | |||
| Per share | $ | 1.33 | $ | 1.23 | |||
(1) See page 4 for a reconciliation of net income to FFO for the quarters ended June 30, 2007 and 2006.
First Half 2007 Results
NET INCOME applicable to common shares for the six months ended June 30, 2007 was $304.3 million, or $1.92 per diluted share, versus $283.6 million, or $1.90 per diluted share, for the six months ended June 30, 2006. Net income for the six months ended June 30, 2007 and 2006 includes certain items that affect comparability which are listed in the table below. Net income for the six months ended June 30, 2006 also includes $33.8 million for our share of net gains on sale of real estate. The aggregate of these items, net of minority interest, increased net income applicable to common shares for the six months ended June 30, 2007 by $61.3 million, or $0.37 per diluted share and increased net income applicable to common shares for the six months ended June 30, 2006 by $62.5 million, or $0.40 per diluted share.
FFO for the six months ended June 30, 2007 was $551.9 million, or $3.36 per diluted share, compared to $442.3 million, or $2.86 per diluted share, for the six months ended June 30, 2006. Adjusting FFO for certain items that affect comparability which are listed in the table below, FFO for the six months ended June 30, 2007 and 2006 was $491.1 million and $409.3 million, or $2.99 and $2.65 per share, respectively.
| (Amounts in thousands, except per share amounts) | For the Six Months Ended June 30, | ||||||
| 2007 | 2006 | ||||||
| FFO applicable to common shares plus assumed conversions (1) | $ | 551,906 | $ | 442,346 | |||
| Per Share | $ | 3.36 | $ | 2.86 | |||
| Items that affect comparability (income) expense: | |||||||
| Derivatives: | |||||||
| McDonalds shares | $ | (74,613 | ) | $ | 8,215 | ||
| Sears Holdings shares | ? | (18,611 | ) | ||||
| GMH Warrants | ? | 16,370 | |||||
| Other | (6,841 | ) | ? | ||||
| 32.8% share of Alexander's: | |||||||
| Stock appreciation rights | (5,916 | ) | 7,559 | ||||
| Net gain on sale of 731 Lexington Avenue condominiums | ? | (4,580 | ) | ||||
| Other: | |||||||
| Costs of acquisition not consummated | 8,807 | ? | |||||
| Prepayment penalties and write-off of unamortized financing costs | 5,861 | 4,933 | |||||
| India Property Fund organization costs | 1,677 | ? | |||||
| H Street litigation costs | 1,891 | 3,561 | |||||
| Net gain on sale of Sears Canada | ? | (55,438 | ) | ||||
| Other, net | 2,131 | 1,415 | |||||
| (67,003 | ) | (36,576 | ) | ||||
| Minority limited partners' share of above adjustments | 6,152 | 3,536 | |||||
| $ | (60,851 | ) | $ | (33,040 | ) | ||
| Per share | $ | (0.37 | ) | $ | (0.21 | ) | |
| FFO as adjusted for comparability | $ | 491,055 | $ | 409,306 | |||
| Per share | $ | 2.99 | $ | 2.65 | |||
(1) See page 4 for a reconciliation of net income to FFO for the six months ended June 30, 2007 and 2006.
Supplemental Financial Information
Further details regarding the Company's results of operations, properties and tenants can be accessed at the Company's website www.vno.com. Vornado Realty Trust is a fully ? integrated equity real estate investment trust.
Certain statements contained herein may constitute ?forward-looking statements? within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, among others, risks associated with the timing of and costs associated with property improvements, financing commitments and general competitive factors.
VORNADO REALTY TRUST OPERATING RESULTS FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2007 AND 2006 | |||||||||||||||||||||||||||||||||||||||||
| FOR THE THREE MONTHS ENDED JUNE, 30 |
FOR THE SIX MONTHS ENDED JUNE, 30 | ||||||||||||||||||||||||||||||||||||||||
| (Amounts in thousands, except per share amounts) | 2007 | 2006 | 2007 | 2006 | |||||||||||||||||||||||||||||||||||||
| Revenues | $ | 793,457 | $ | 663,032 | $ | 1,530,513 | $ | 1,310,369 | |||||||||||||||||||||||||||||||||
| Income from continuing operations | $ | 187,631 | $ | 169,105 | $ | 376,588 | $ | 322,429 | |||||||||||||||||||||||||||||||||
| (Loss) income from discontinued operations | (40 | ) | 16,762 | (71 | ) | 33,497 | |||||||||||||||||||||||||||||||||||
| Income before allocation to limited partners | 187,591 | 185,867 | 376,517 | 355,926 | |||||||||||||||||||||||||||||||||||||
Minority limited partners' interest in
the | (16,852 | ) | (17,324 | ) | (34,029 | ) | (33,198 | ) | |||||||||||||||||||||||||||||||||
|
Perpetual preferred unit distributions of the Operating Partnership | (4,819 | ) | (5,374 | ) | (9,637 | ) | (10,347 | ) | |||||||||||||||||||||||||||||||||
| Net income | 165,920 | 163,169 | 332,851 | 312,381 | |||||||||||||||||||||||||||||||||||||
| Preferred share dividends | (14,295 | ) | (14,404 | ) | (28,591 | ) | (28,811 | ) | |||||||||||||||||||||||||||||||||
| Net income applicable to common shares | $ | 151,625 | $ | 148,765 | $ | 304,260 | $ | 283,570 | |||||||||||||||||||||||||||||||||
| Net income per common share: | |||||||||||||||||||||||||||||||||||||||||
| Basic | $ | 1.00 | $ | 1.05 | Share
© Business Wire - 2007
Vornado Realty Trust is a fully-integrated real estate investment trust (REIT). The Company conducts its business through, and substantially all its interests in properties are held by, Vornado Realty L.P. Its portfolio is concentrated on premier office and high street retail properties in New York City. Its segments include New York and Other. Its New York segment consisted of 26.7 million square feet in 60 properties. The 26.7 million square feet comprises 20.4 million square feet of Manhattan office in 30 of the properties, 2.4 million square feet of Manhattan street retail in 50 of the properties, 1,662 units in five residential properties, and its 32.4% interest in Alexanderâs, which owns five properties in the greater New York metropolitan area. It also includes nine garages totaling 1.6 million square feet (4,685 spaces). Its Real Estate and Investments consists of 3.7 million square foot THE MART in Chicago, a three-building office complex in San Franciscoâs financial district.
Sector
Commercial REITs
Calendar
2024-05-23
- Annual General Meeting
Trading Rating
Investor Rating
ESG Refinitiv
B Sell  Mean consensus UNDERPERFORM Number of Analysts 14 Last Close Price
24.22
USD Average target price
25.54
USD Spread / Average Target +5.43% EPS Revisions
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