Vornado Announces First Quarter Results
PARAMUS, N.J.--(BUSINESS WIRE)--April 28, 2005--Vornado Realty Trust (New York Stock Exchange: VNO) today reported:
NET INCOME applicable to common shares for the quarter ended March 31, 2005 was $187.4 million, or $1.39 per diluted share, versus $74.5 million, or $.59 per diluted share, for the prior year. Net income for the quarters ended March 31, 2005 and 2004 includes certain items that affect comparability which are listed in the table below. These items, net of minority interest, increased net income by $80.7 million, or $.60 per diluted share for the quarter ended March 31, 2005 and decreased net income by $12.2 million or $0.10 per diluted share for the prior year's quarter.
FUNDS FROM OPERATIONS (FFO)(1) applicable to common shares plus assumed conversions for the quarter ended March 31, 2005 was $248.7 million, or $1.84 per diluted share, compared to $129.0 million, or $1.01 per diluted share, for the prior year's quarter. Adjusting for certain items that affect comparability, the quarter ended March 31, 2005 is 11.7% higher than the prior year's quarter on a per share basis, as detailed below:
FOR THE QUARTER ENDED
------------------------------
(Amounts in thousands, except per share
amounts) March 31, 2005March 31, 2004
------------------------------
Per Per
Amount Share Amount Share
-------- ----- -------- ------
FFO(1) applicable to common shares plus
assumed conversions, as shown above $248,725 $1.84 $128,975 $1.01
-------- ===== -------- ======
Adjustments:
Net gain on conversion of Sears common
shares and derivative position to
Sears Holdings common shares and
derivative position (86,094) --
Net gain on mark-to-market of Sears
Holdings derivative position (7,899) --
Net gain on sale of Alexander's 731
Lexington Avenue condominiums (20,633) --
Net loss on mark-to-market of GMH
warrants 10,178 --
Alexander's stock appreciation rights
compensation expense 7,433 9,913
Write-off of perpetual preferred share
and unit issuance costs 6,052 3,895
Net gain on sale of land parcels (1,469) (776)
Net loss on early extinguishment of
debt and impairment loss of partially-
owned entities 496 1,434
Limited partners' share of above
adjustments 11,260 (2,261)
--------- ---------
Subtotal adjustments (80,676) 12,205
--------- ---------
FFO applicable to common shares plus
assumed conversions, as adjusted for
comparability $168,049 $1.24 $141,180 $1.11
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(1) See page 3 for a reconciliation of net income to FFO for the
quarters ended March 31, 2005 and 2004.
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. See the Company's annual
report on Form 10-K for the year ended December 31, 2004 for further
discussion of trends, risks, uncertainties and other factors.
VORNADO REALTY TRUST
OPERATING RESULTS FOR THE QUARTERS ENDED
MARCH 31, 2005 AND 2004
FOR THE THREE
MONTHS ENDED
MARCH 31,
------------------
(Amounts in thousands, except per share amounts) 2005 2004
------------------
Revenues $597,478 $391,368
======== =========
Income from continuing operations $244,192 $113,947
Income from discontinued operations 1,363 247
-------- ---------
Income before allocation to limited partners 245,555 114,194
Limited partners' interest in the
Operating Partnership (27,195) (14,457)
Perpetual preferred unit distributions of the
Operating Partnership (18,541) (17,298)
-------- ---------
Net income 199,819 82,439
Preferred share dividends (12,386) (7,982)
-------- ---------
Net income applicable to common shares $187,433 $74,457
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Net income per common share:
Basic $1.46 $.61
======== =========
Diluted $1.39 $.59
======== =========
Average number of common shares and share
equivalents outstanding:
Basic 128,313 121,588
======== =========
Diluted 135,319 127,011
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FFO applicable to common shares plus assumed
conversions $248,725 $128,975
======== =========
FFO per diluted share $1.84 $1.01
======== =========
Average number of common shares and share
equivalents outstanding used for determining
FFO per diluted share 135,319 127,484
======== =========
The following table reconciles FFO(1) and net income:
For the Three
Months Ended
(Amounts in thousands) March 31,
------------------
2005 2004
-------- ---------
Net income $199,819 $82,439
Depreciation and amortization of real property 63,876 53,640
Proportionate share of adjustments to equity in net
income of partially-owned entities to arrive at
FFO:
Depreciation and amortization of real property 6,297 13,104
Net gains on sale of real estate (135) (1,917)
Limited partners' share of above adjustments (9,001) (10,586)
-------- ---------
FFO(1) 260,856 136,680
Preferred dividends (12,386) (7,982)
-------- ---------
FFO applicable to common shares 248,470 128,698
Series A convertible preferred dividends 255 277
-------- ---------
FFO applicable to common shares plus assumed
conversions $248,725 $128,975
======== =========
(1) 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 net income or loss determined in accordance with GAAP, excluding extraordinary items as defined under GAAP and gains or losses from sales of previously depreciated operating real estate assets, plus specified non-cash items, such as real estate asset depreciation and amortization, and after adjustments for unconsolidated partnerships and joint ventures. FFO and FFO per diluted share are used by management, investors and industry analysts as supplemental measures of operating performance of equity REITs. FFO and FFO per diluted share should be evaluated along with GAAP net income and income per diluted share (the most directly comparable GAAP measures), as well as cash flow from operating activities, investing activities and financing activities, in evaluating the operating performance of equity REITs. Management believes that FFO and FFO per diluted share are helpful to investors as supplemental performance measures because these measures exclude the effect of depreciation, amortization and gains or losses from sales of real estate, all of which are based on historical costs which implicitly assumes that the value of real estate diminishes predictably over time. Since real estate values instead have historically risen or fallen with market conditions, these non-GAAP measures can facilitate comparisons of operating performance between periods and among other equity REITs. FFO does not represent cash generated from operating activities in accordance with GAAP and is not necessarily indicative of cash available to fund cash needs as disclosed in the Company's Consolidated Statements of Cash Flows. FFO should not be considered as an alternative to net income as an indicator of the Company's operating performance or as an alternative to cash flows as a measure of liquidity. In addition to FFO, the Company also discloses FFO before certain items that affect comparability. Although this non-GAAP measure clearly differs from NAREIT's definition of FFO, the Company believes it provides a meaningful presentation of operating performance. A reconciliation of net income to FFO is provided above. In addition, a reconciliation of FFO to FFO before certain items that affect comparability is provided on page 1 of this press release.
CONTACT: Vornado Realty Trust
Joseph Macnow, 201-587-1000
SOURCE: Vornado Realty Trust