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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
 
FORM 8-K
 
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
 
Date of Report (Date of earliest event reported):
October 30, 2017
 
VORNADO REALTY TRUST
(Exact Name of Registrant as Specified in Charter)
Maryland
 
No. 001-11954
 
No. 22-1657560
(State or Other
 
(Commission
 
(IRS Employer
Jurisdiction of Incorporation)
 
File Number)
 
Identification No.)
VORNADO REALTY L.P.
(Exact Name of Registrant as Specified in Charter)
Delaware
 
No. 001-34482
 
No. 13-3925979
(State or Other
 
(Commission
 
(IRS Employer
Jurisdiction of Incorporation)
 
File Number)
 
Identification No.)
 
888 Seventh Avenue
New York, New York
 
10019
(Address of Principal Executive offices)
 
(Zip Code)
 
Registrant’s telephone number, including area code: (212) 894-7000
Former name or former address, if changed since last report: N/A
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instructions A.2.):
o
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
o
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company o
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o 
 



­Item 2.02.        Results of Operations and Financial Condition.
On October 30, 2017, Vornado Realty Trust (the “Company”), the general partner of Vornado Realty L.P., issued a press release announcing its financial results for the third quarter of 2017.  That press release referred to certain supplemental financial information that is available on the Company’s website.  That press release and the supplemental financial information are attached to this Current Report on Form 8-K as Exhibits 99.1 and 99.2, respectively, and are incorporated by reference herein.
Exhibits 99.1 and 99.2 hereto shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the Exchange Act), or otherwise subject to the liabilities under that Section and shall not be deemed to be incorporated by reference into any filing of the Company or Vornado Realty L.P. under the Securities Act of 1933, as amended, or the Exchange Act.
Item 9.01. Financial Statements and Exhibits.
(d)
Exhibits.
The following exhibits are being furnished as part of this Current Report on Form 8-K:
99.1
 
99.2
 



2


SIGNATURE 
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 
VORNADO REALTY TRUST
 
 
(Registrant)
 
 
 
 
 
 
By:
/s/ Matthew Iocco
 
 
Name:
Matthew Iocco
 
 
Title:
Chief Accounting Officer (duly
authorized officer and principal accounting officer)
 
 
Date: October 31, 2017
 
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 
VORNADO REALTY L.P.
 
 
(Registrant)
 
 
By:
VORNADO REALTY TRUST,
 
 
 
Sole General Partner
 
 
 
 
 
 
By:
/s/ Matthew Iocco
 
 
Name:
Matthew Iocco
 
 
Title:
Chief Accounting Officer of Vornado
Realty Trust, sole General Partner of Vornado Realty
L.P. (duly authorized officer and principal accounting
officer)
 
 
Date: October 31, 2017


3
Exhibit



EXHIBIT 99.1
 
CONTACT:
JOSEPH MACNOW
 
https://cdn.kscope.io/54106e6c7fd9e2a9aaf87b53812c6876-vornado1.jpg 
 
 
(212) 894-7000
 
 
 
 
 
 
 
 
 
 
 
 
 
888 Seventh Avenue
New York, NY 10019
 

FOR IMMEDIATE RELEASE – October 30, 2017
Vornado Announces Third Quarter 2017 Financial Results
NEW YORK.......VORNADO REALTY TRUST (New York Stock Exchange: VNO) filed its Form 10-Q for the quarter ended September 30, 2017 today and reported its financial results below. The financial results treat as "discontinued operations," the Company's former Washington, DC segment, which was spun off to shareholders on July 17, 2017.
Quarter Ended September 30, 2017 Financial Results
•
NET LOSS attributable to common shareholders for the quarter ended September 30, 2017 was $29.0 million, or $0.15 per diluted share.  Net income attributable to common shareholders for the quarter ended September 30, 2016 was $66.1 million, or $0.35 per diluted share. Adjusting net (loss) income attributable to common shareholders (non-GAAP) for the items listed in the table on the following page, net income attributable to common shareholders for the quarters ended September 30, 2017 and 2016 was $68.2 million and $48.0 million, or $0.36 and $0.25 per diluted share, respectively.

•
FUNDS FROM OPERATIONS attributable to common shareholders plus assumed conversions (non-GAAP) ("FFO") for the quarter ended September 30, 2017 was $100.2 million, or $0.52 per diluted share, compared to $225.5 million, or $1.19 per diluted share, for the prior year's quarter.  Adjusting FFO for the items listed in the table on page 3, FFO for the quarters ended September 30, 2017 and 2016 was $189.0 million and $176.2 million, or $0.99 and $0.93 per diluted share, respectively.

Nine Months Ended September 30, 2017 Financial Results
•
NET INCOME attributable to common shareholders for the nine months ended September 30, 2017 was $134.7 million, or $0.71 per diluted share, compared to $172.4 million, or $0.91 per diluted share, for the nine months ended September 30, 2016.  Adjusting net income attributable to common shareholders (non-GAAP) for the items listed in the table on the following page, net income attributable to common shareholders for the nine months ended September 30, 2017 and 2016 was $165.4 million and $119.4 million, or $0.87 and $0.63 per diluted share, respectively.

•
FFO (non-GAAP) for the nine months ended September 30, 2017 was $564.4 million, or $2.95 per diluted share, compared to $658.9 million, or $3.47 per diluted share, for the prior year's nine months.  Adjusting FFO for the items listed in the table on page 3, FFO for the nine months ended September 30, 2017 and 2016 was $537.3 million and $499.1 million, or $2.81 and $2.63 per diluted share, respectively.

Supplemental Financial Information
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.  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.  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, as amended, for the year ended December 31, 2016.  Such factors include, among others, risks associated with the timing of and costs associated with property improvements, financing commitments and general competitive factors.

(tables to follow)

1

The following table reconciles our 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 September 30,
 
For the Nine Months Ended September 30,
 
2017
 
2016
 
2017
 
2016
Net (loss) income attributable to common shareholders
$
(29,026
)
 
$
66,125

 
$
134,698

 
$
172,425

Per diluted share
$
(0.15
)
 
$
0.35

 
$
0.71

 
$
0.91

 
 
 
 
 
 
 
 
Certain items that impact net (loss) income attributable to common shareholders:
 
 
 
 
 
 
 
JBG SMITH Properties which is treated as a discontinued operation:
 
 
 
 
 
 
 
Transaction costs
$
(53,581
)
 
$
(2,739
)
 
$
(67,045
)
 
$
(4,597
)
Operating results through July 17, 2017 spin-off
3,950

 
29,489

 
47,752

 
66,714

 
(49,631
)
 
26,750

 
(19,293
)
 
62,117

 
 
 
 
 
 
 
 
Impairment loss on investment in Pennsylvania REIT
(44,465
)
 
—

 
(44,465
)
 
—

(Loss) income from real estate fund investments, net
(7,794
)
 
807

 
(11,333
)
 
13,662

Net gain resulting from Urban Edge Properties operating partnership unit issuances
5,200

 
—

 
21,100

 
—

Our share of write-off of deferred financing costs
(3,819
)
 
—

 
(3,819
)
 
—

Preferred share issuance costs (Series J redemption)
—

 
(7,408
)
 
—

 
(7,408
)
Our share of net gain on sale of property of Suffolk Downs JV
—

 
—

 
15,314

 
—

Net gain on repayment of Suffolk Downs JV debt investments
—

 
—

 
11,373

 
—

Skyline properties impairment loss
—

 
—

 
—

 
(160,700
)
Net gain on sale of 47% ownership interest in 7 West 34th Street
—

 
—

 
—

 
159,511

Other
(3,197
)
 
(851
)
 
(1,024
)
 
(10,699
)
 
(103,706
)
 
19,298

 
(32,147
)
 
56,483

Noncontrolling interests' share of above adjustments
6,451

 
(1,183
)
 
1,407

 
(3,430
)
Total of certain items that impact net (loss) income attributable to common shareholders, net
$
(97,255
)
 
$
18,115

 
$
(30,740
)
 
$
53,053

 
 
 
 
 
 
 
 
Net income attributable to common shareholders, as adjusted
(non-GAAP)
$
68,229

 
$
48,010


$
165,438


$
119,372

Per diluted share (non-GAAP)
$
0.36

 
$
0.25

 
$
0.87

 
$
0.63




2

The following table reconciles our FFO (non-GAAP) to FFO, as adjusted (non-GAAP):
(Amounts in thousands, except per share amounts)
For the Three Months Ended September 30,
 
For the Nine Months Ended September 30,
 
2017
 
2016
 
2017
 
2016
FFO (non-GAAP) (1)
$
100,178

 
$
225,529

 
$
564,431

 
$
658,880

Per diluted share (non-GAAP)
$
0.52

 
$
1.19

 
$
2.95

 
$
3.47

 
 
 
 
 
 
 
 
Certain items that impact FFO:
 
 
 
 
 
 
 
JBG SMITH Properties which is treated as a discontinued operation:
 
 
 
 
 
 
 
Transaction costs
$
(53,581
)
 
$
(2,739
)
 
$
(67,045
)
 
$
(4,597
)
Operating results through July 17, 2017 spin-off
10,148

 
61,699

 
122,201

 
169,141

 
(43,433
)
 
58,960

 
55,156

 
164,544

 
 
 
 
 
 
 
 
Impairment loss on investment in Pennsylvania REIT
(44,465
)
 
—

 
(44,465
)
 
—

(Loss) income from real estate fund investments, net
(7,794
)
 
807

 
(11,333
)
 
13,662

Net gain resulting from Urban Edge Properties operating partnership unit issuances
5,200

 
—

 
21,100

 
—

Our share of write-off of deferred financing costs
(3,819
)
 
—

 
(3,819
)
 
—

Preferred share issuance costs (Series J redemption)
—

 
(7,408
)
 
—

 
(7,408
)
Net gain on repayment of our Suffolk Downs JV debt investments
—

 
—

 
11,373

 
—

Other
(390
)
 
171

 
856

 
(130
)
 
(94,701
)
 
52,530

 
28,868

 
170,668

Noncontrolling interests' share of above adjustments
5,890

 
(3,220
)
 
(1,782
)
 
(10,877
)
Total of certain items that impact FFO, net
$
(88,811
)
 
$
49,310

 
$
27,086

 
$
159,791

 
 
 
 
 
 
 
 
FFO, as adjusted (non-GAAP)
$
188,989

 
$
176,219

 
$
537,345

 
$
499,089

Per diluted share (non-GAAP)
$
0.99

 
$
0.93

 
$
2.81

 
$
2.63

____________________________________________________________
(1)
See page 5 for a reconciliation of our net (loss) income attributable to common shareholders to FFO (non-GAAP) for the three and nine months ended September 30, 2017 and 2016.


3

VORNADO REALTY TRUST
OPERATING RESULTS FOR THE THREE AND NINE MONTHS ENDED
SEPTEMBER 30, 2017 AND 2016

(Amounts in thousands, except per share amounts)
For the Three Months Ended September 30,
 
For the Nine Months Ended September 30,
 
2017
 
2016
 
2017
 
2016
Revenues
$
528,755

 
$
502,753

 
$
1,547,900

 
$
1,489,768

 
 
 
 
 
 
 
 
Income from continuing operations
$
37,176

 
$
75,524

 
$
225,078

 
$
381,582

(Loss) income from discontinued operations
(47,930
)
 
25,080

 
(14,501
)
 
(104,204
)
Net (loss) income
(10,754
)
 
100,604

 
210,577

 
277,378

Less net (income) loss attributable to noncontrolling interests in:
 
 
 
 
 
 
 
Consolidated subsidiaries
(4,022
)
 
(3,658
)
 
(18,436
)
 
(26,361
)
Operating Partnership
1,878

 
(4,366
)
 
(9,057
)
 
(11,410
)
Net (loss) income attributable to Vornado
(12,898
)
 
92,580

 
183,084

 
239,607

Preferred share dividends
(16,128
)
 
(19,047
)
 
(48,386
)
 
(59,774
)
Preferred share issuance costs (Series J redemption)
—

 
(7,408
)
 
—

 
(7,408
)
Net (loss) income attributable to common shareholders
$
(29,026
)
 
$
66,125

 
$
134,698

 
$
172,425

 
 
 
 
 
 
 
 
(Loss) income per common share - Basic:
 
 
 
 
 
 
 
Income from continuing operations, net
$
0.09

 
$
0.23

 
$
0.78

 
$
1.43

(Loss) income from discontinued operations, net
(0.24
)
 
0.12

 
(0.07
)
 
(0.52
)
Net (loss) income per common share
$
(0.15
)
 
$
0.35

 
$
0.71

 
$
0.91

Weighted average shares outstanding
189,593

 
188,901

 
189,401

 
188,778

 
 
 
 
 
 
 
 
(Loss) income per common share - Diluted:
 
 
 
 
 
 
 
Income from continuing operations, net
$
0.09

 
$
0.23

 
$
0.78

 
$
1.42

(Loss) income from discontinued operations, net
(0.24
)
 
0.12

 
(0.07
)
 
(0.51
)
Net (loss) income per common share
$
(0.15
)
 
$
0.35

 
$
0.71

 
$
0.91

Weighted average shares outstanding
190,847

 
190,048

 
191,257

 
190,086

 
 
 
 
 
 
 
 
FFO (non-GAAP)
$
100,178

 
$
225,529

 
$
564,431

 
$
658,880

Per diluted share (non-GAAP)
$
0.52

 
$
1.19

 
$
2.95

 
$
3.47

 
 
 
 
 
 
 
 
FFO, as adjusted (non-GAAP)
$
188,989

 
$
176,219

 
$
537,345

 
$
499,089

Per diluted share (non-GAAP)
$
0.99

 
$
0.93

 
$
2.81

 
$
2.63

 
 
 
 
 
 
 
 
Weighted average shares used in determining FFO per diluted share
190,893

 
190,090

 
191,304

 
190,129







4

The following table reconciles net (loss) income attributable to common shareholders to FFO (non-GAAP):
(Amounts in thousands, except per share amounts)
For the Three Months Ended September 30,
 
For the Nine Months Ended September 30,
 
2017
 
2016
 
2017
 
2016
Net (loss) income attributable to common shareholders
$
(29,026
)
 
$
66,125

 
$
134,698

 
$
172,425

Per diluted share
$
(0.15
)
 
$
0.35

 
$
0.71

 
$
0.91

 
 
 
 
 
 
 
 
FFO adjustments:
 

 
 

 
 

 
 

Depreciation and amortization of real property
$
102,953

 
$
130,892

 
$
361,949

 
$
398,231

Net gains on sale of real estate
(1,530
)
 
—

 
(3,797
)
 
(161,721
)
Real estate impairment losses
—

 
—

 
—

 
160,700

Proportionate share of adjustments to equity in net (loss) income of partially owned entities to arrive at FFO:
 
 
 
 
 
 
 
Depreciation and amortization of real property
31,997

 
40,281

 
108,753

 
117,635

Net gains on sale of real estate
8

 
(2,522
)
 
(17,184
)
 
(2,841
)
Real estate impairment losses
4,329

 
1,134

 
7,547

 
5,536

 
137,757

 
169,785

 
457,268

 
517,540

Noncontrolling interests' share of above adjustments
(8,572
)
 
(10,403
)
 
(28,444
)
 
(31,872
)
FFO adjustments, net
$
129,185

 
$
159,382

 
$
428,824

 
$
485,668

 
 
 
 
 
 
 
 
FFO attributable to common shareholders (non-GAAP)
$
100,159

 
$
225,507

 
$
563,522

 
$
658,093

Convertible preferred share dividends
19

 
22

 
59

 
65

Earnings allocated to Out-Performance Plan units
—

 
—

 
850

 
722

FFO attributable to common shareholders plus assumed conversions
      (non-GAAP)
$
100,178

 
$
225,529

 
$
564,431

 
$
658,880

Per diluted share (non-GAAP)
$
0.52

 
$
1.19

 
$
2.95

 
$
3.47

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 depreciated real estate assets, real estate impairment losses, depreciation and amortization expense from real estate assets and other specified non-cash 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.  A reconciliation of our net (loss) income to FFO is provided above.  In addition to FFO, we also disclose FFO, 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 FFO to FFO, as adjusted are provided on page 3 of this press release.
Conference Call and Audio Webcast
As previously announced, the Company will host a quarterly earnings conference call and an audio webcast on Tuesday, October 31, 2017 at 10:00 a.m. Eastern Time (ET).  The conference call can be accessed by dialing 800-708-4540 (domestic) or 847-619-6397 (international) and indicating to the operator the passcode 45656931.  A telephonic replay of the conference call will be available from 1:00 p.m. ET on October 31, 2017 through November 30, 2017.  To access the replay, please dial 888-843-7419 and enter the passcode 45656931#.  A live webcast of the conference call will be available on the Company's website at www.vno.com and an online playback of the webcast will be available on the website for 90 days following the conference call. 
####

5
Exhibit



EXHIBIT 99.2
 https://cdn.kscope.io/54106e6c7fd9e2a9aaf87b53812c6876-updated4.jpg
 
 



                   
SUPPLEMENTAL OPERATING
AND FINANCIAL DATA
For the Quarter Ended September 30, 2017

https://cdn.kscope.io/54106e6c7fd9e2a9aaf87b53812c6876-vornado1.jpg

 


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INDEX
 
 
 
 
 
 
 
 
Page
Financial Supplement Definitions
 
 
Investor Information
 
 
2017 Business Developments
-
Common Shares Data
 
 
Financial Highlights
 
 
Trailing Twelve Months Pro Forma Cash Net Operating Income
 
 
Net Income/EBITDA/NOI (Consolidated and by Segment)
-
EBITDA by Region
 
 
Consolidated Balance Sheets
 
 
Capital Structure
 
 
Debt Analysis
-
Unconsolidated Joint Ventures
-
Square Footage
 
 
Top 30 Tenants
 
 
Lease Expirations
-
Leasing Activity
-
Occupancy, Same Store EBITDA, and NOI
 
 
Residential Statistics
 
 
Development/Redevelopment Summary
 
 
Capital Expenditures
-
Property Table
-
Non-GAAP Reconciliations:
 
 
 
Net Income to Net Income, as Adjusted
 
 
Net Income to Funds From Operations to Funds From Operations, as Adjusted
-
Funds From Operations to Funds Available for Distribution
 
 
EBITDA to EBITDA, as Adjusted
-
NOI to NOI, as Adjusted
-
EBITDA to Same Store EBITDA
-
NOI to Same Store NOI
-
Trailing Twelve Months Net Income to EBITDA, as Adjusted / Our Pro Rata Share of Annualized Revenues / Consolidated Debt to Contractual Debt
 
 

Certain statements contained herein constitute forward-looking statements as such term is defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended.  Forward-looking statements are not guarantees of 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 supplemental package.  We also note the following forward-looking statements: in the case of our development and redevelopment projects, the estimated completion date, estimated project cost and cost to complete; and estimates of future capital expenditures, dividends to common and preferred shareholders and operating partnership distributions. Many of the factors that will determine the outcome of these and our other forward-looking statements are beyond our ability to control or predict.  For further discussion of factors that could materially affect the outcome of our forward-looking statements, see "Item 1A. Risk Factors" in our Annual Report on Form 10-K, as amended, for the year ended December 31, 2016. For these statements, we claim the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. You are cautioned not to place undue reliance on our forward-looking statements, which speak only as of the date of this supplemental package.  All subsequent written and oral forward-looking statements attributable to us or any person acting on our behalf are expressly qualified in their entirety by the cautionary statements contained or referred to in this section. We do not undertake any obligation to release publicly any revisions to our forward-looking statements to reflect events or circumstances occurring after the date of our Annual Report on Form 10-K, or Quarterly Report on Form 10-Q, as applicable, and this supplemental package.

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FINANCIAL SUPPLEMENT DEFINITIONS
The financial supplement includes various non-GAAP financial measures.  Descriptions of these non-GAAP measures are provided below. Reconciliations of these non-GAAP measures to the most directly comparable GAAP measures are provided on pages 54 to 68.
Earnings Before Interest, Taxes, Depreciation and Amortization ("EBITDA") and Net Operating Income ("NOI") - We calculate EBITDA and NOI on an Operating Partnership basis which is before allocation to the noncontrolling interest of the Operating Partnership.  We consider EBITDA 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. We also consider NOI a key non-GAAP financial measure. NOI is before general and administrative expenses, straight-line rental income and expense, amortization of acquired below and above market leases, net, acquisition and transaction related costs, our share of net realized and unrealized gains or losses from our real estate fund investments, impairment losses and gains on disposal of assets. As properties are bought and sold based on a multiple of NOI, we utilize this measure to make investment decisions as well as to compare the performance of our assets to those of our peers. EBITDA and NOI should not be considered substitutes for net income. EBITDA and NOI may not be comparable to similarly titled measures employed by other companies.
Funds From Operations ("FFO") - 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 depreciated real estate assets, real estate impairment losses, depreciation and amortization expense from real estate assets and other specified non-cash 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.
Funds Available For Distributions ("FAD") - FAD is defined as FFO less (i) cash basis recurring tenant improvements, leasing commissions and capital expenditures, (ii) straight-line rents and amortization of acquired below-market leases, net, and (iii) other non-cash income, plus (iv) other non-cash charges.  FAD is a non-GAAP financial measure that is not intended to represent cash flow and is not indicative of cash flow provided by operating activities as determined in accordance with GAAP. FAD is presented solely as a supplemental disclosure that management believes provides useful information regarding the Company's ability to fund its dividends.

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INVESTOR INFORMATION
 
 
 
 
 
 
Executive Officers:
 
 
 
 
 
Steven Roth
 
Chairman of the Board and Chief Executive Officer
 
 
David R. Greenbaum
 
President - New York Division
 
 
Michael J. Franco
 
Executive Vice President - Chief Investment Officer
 
 
Joseph Macnow
 
Executive Vice President - Chief Financial Officer and Chief Administrative Officer
 
 
 
 
 
 
 
 
RESEARCH COVERAGE - EQUITY
 
 
 
 
 
 
James Feldman/Scott Freitag
Jed Reagan/Daniel Ismail
 
Michael Lewis
Bank of America/Merrill Lynch
Green Street Advisors
 
SunTrust Robinson Humphrey
646-855-5808/646-855-3197
949-640-8780
 
212-319-5659
 
 
 
 
 
 
Ross Smotrich/Trevor Young
Anthony Paolone
 
Nick Yulico/Frank Lee
Barclays Capital
JP Morgan
 
UBS
212-526-2306/212-526-3098
212-622-6682/212-633-1041
 
212-713-3402/415-352-5679
 
 
 
 
 
 
Michael Bilerman/Emmanuel Korchman
Vikram Malhotra/Nicholas Stelzner
 
 
Citi
Morgan Stanley
 
 
212-816-1383/212-816-1382
212-761-7064/212-761-6117
 
 
 
 
 
 
 
 
Vincent Chao
Alexander Goldfarb/Daniel Santos
 
 
Deutsche Bank
Sandler O'Neill
 
 
212-250-6799
212-466-7937/212-466-7927
 
 
 
 
 
 
 
 
Steve Sakwa/Robert Simone
John W. Guinee
 
 
Evercore ISI
Stifel Nicolaus & Company
 
 
212-446-9462/212-446-9459
443-224-1307/443-224-1350
 
 
 
 
 
 
 
 
RESEARCH COVERAGE - DEBT
 
 
 
 
 
 
Andrew Molloy
Jesse Rosenthal
 
Thierry Perrein
Bank of America/Merrill Lynch
CreditSights
 
Wells Fargo Securities
646-855-6435
212-340-3816
 
704-410-3262
 
 
 
 
 
 
Mark Streeter
Cristina Rosenberg
 
 
JP Morgan
Citi
 
 
212-834-5086
212-723-6199
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
This information is provided as a service to interested parties and not as an endorsement of any report, or representation as to the accuracy of any information contained therein. Opinions, forecasts and other forward-looking statements expressed in analysts' reports are subject to change without notice.        

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2017 BUSINESS DEVELOPMENTS
 
Washington, DC Spin-off
On July 17, 2017, we completed the spin-off of our Washington, DC segment comprised of (i) 37 office properties totaling over 11.1 million square feet, five multifamily properties with 3,133 units and five other assets totaling approximately 406,000 square feet and (ii) 18 future development assets totaling over 10.4 million square feet of estimated potential development density, and (iii) $412.5 million of cash ($275.0 million plus The Bartlett financing proceeds less transaction costs and other mortgage items) to JBG SMITH Properties (“JBGS”). On July 18, 2017, JBGS was combined with the management business and certain Washington, DC assets of The JBG Companies (“JBG”), a Washington, DC real estate company. Steven Roth, the Chairman of the Board of Trustees and Chief Executive Officer of Vornado, is the Chairman of the Board of Trustees of JBGS. Mitchell Schear, former President of our Washington, DC business, is a member of the Board of Trustees of JBGS. We are providing transition services to JBGS initially including information technology, financial reporting and payroll services. The spin-off was effected through a tax-free distribution by Vornado to the holders of Vornado common shares of all of the common shares of JBGS at the rate of one JBGS common share for every two common shares of Vornado and the distribution by the Operating Partnership to the holders of its common units of all of the outstanding common units of JBG SMITH Properties LP (“JBGSLP”) at the rate of one JBGSLP common unit for every two common units of VRLP held of record. See JBGS’ Amendment No. 3 on Form 10 (File No. 1-37994) filed with the Securities and Exchange Commission on June 9, 2017 for additional information. Beginning in the third quarter of 2017, the historical financial results of our Washington, DC segment are reflected in our consolidated financial statements as discontinued operations for all periods presented.

Financing Activities
On June 1, 2017, Alexander’s, Inc. (NYSE: ALX), in which we have a 32.4% ownership interest, completed a $500,000,000 refinancing of the office portion of 731 Lexington Avenue. The interest-only loan is at LIBOR plus 0.90% (2.14% at September 30, 2017) and matures in June 2020 with four one-year extension options. In connection therewith, Alexander’s purchased an interest rate cap with a notional amount of $500,000,000 that caps LIBOR at a rate of 6.00%. The property was previously encumbered by a $300,000,000 interest-only mortgage at LIBOR plus 0.95% which was scheduled to mature in March 2021.
On June 15, 2017, the joint venture, in which we have a 50.1% interest, completed a $271,000,000 loan facility, with an initial advance of $202,299,000 for the Moynihan Office Building. The interest-only loan is at LIBOR plus a 3.25% (4.48% at September 30, 2017) and matures in June 2019 with two one-year extension options.
On June 20, 2017, we completed a $220,000,000 financing of The Bartlett residential building. The five-year interest-only loan is at LIBOR plus 1.70% (2.90% at September 30, 2017), and matures in June 2022. On July 17, 2017, the property, the loan and the $217,000,000 of net proceeds were transferred to JBGS in connection with the tax-free spin-off of our Washington, DC segment.

On July 17, 2017, prior to completion of the tax-free spin-off of our Washington, DC segment, we repaid the $43,581,000 LIBOR plus 1.25% mortgage encumbering 1700 and 1730 M Street which was scheduled to mature in August 2017. The unencumbered property was then transferred to JBGS in connection with the tax-free spin-off of our Washington, DC segment.

On July 19, 2017, the joint venture, in which we have a 25.0% interest, completed a $500,000,000 refinancing of 330 Madison Avenue, an 845,000 square foot Manhattan office building. The seven-year interest-only loan matures in August 2024 and has a fixed rate of 3.43%. Our share of net proceeds, after repayment of the existing $150,000,000 LIBOR plus 1.30% mortgage and closing costs, was approximately $85,000,000.

On August 23, 2017, the joint venture, in which we have a 50.0% interest, completed a $1.2 billion refinancing of 280 Park Avenue, a 1,250,000 square foot Manhattan office building. The loan is interest-only at LIBOR plus 1.73% (2.97% at September 30, 2017) and matures in September 2019 with five one-year extension options. Our share of net proceeds, after repayment of the existing $900,000,000 LIBOR plus 2.00% mortgage and closing costs, was approximately $140,000,000.

On October 17, 2017, we extended one of our two $1.25 billion unsecured revolving credit facilities from November 2019 to January 2022 with two six-month extension options. The interest rate on the extended facility was lowered from LIBOR plus 1.05% to LIBOR plus 1.00%. The facility fee remains at 20 basis points. The interest rate and facility fees are the same as our other $1.25 billion unsecured revolving credit facility, which matures in February 2021 with two six-month extension options.

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2017 BUSINESS DEVELOPMENTS
 
Other Activities
Moynihan Office Building
In September 2016, our 50.1% joint venture with the Related Companies (Related) was designated by Empire State Development ("ESD"), an entity of New York State to redevelop the historic Farley Post Office building.  The building will include a new Moynihan Train Hall and approximately 850,000 rentable square feet of commercial space, comprised of approximately 730,000 square feet of office space and approximately 120,000 square feet of retail space.  On June 15, 2017, the joint venture closed a 99-year, triple-net lease with ESD for the commercial space at the Moynihan Office Building and made a $230,000,000 upfront contribution, of which our share is $115,230,000, towards the construction of the train hall. The lease calls for annual rent payments of $5,000,000 plus payments in lieu of real estate taxes. Simultaneously, the joint venture completed a $271,000,000 loan facility, with an initial advance of $202,299,000.  The interest-only loan is at LIBOR plus 3.25% (4.48% at September 30, 2017) and matures in June 2019 with two one-year extension options.
The joint venture has also entered into a development agreement with ESD and a design-build contract with Skanska Moynihan Train Hall Builders.  Under the development agreement with ESD, the joint venture is obligated to build the Moynihan Train Hall, with Vornado and Related each guaranteeing the joint venture's obligations.  Under the design-build agreement, Skanska Moynihan Train Hall Builders is obligated to fulfill all of the joint venture's obligations.  The obligations of Skanska Moynihan Train Hall Builders have been bonded by Skanska USA and bears a full guaranty from Skanska AB.
Mezzanine Loan – New York
On May 9, 2017, a $150,000,000 mezzanine loan owned by a joint venture in which we have a 33.3% ownership interest was repaid at its maturity and we received our $50,000,000 share. The mezzanine loan earned interest at LIBOR plus 9.42%.
Sterling Suffolk Racecourse, LLC ("Suffolk Downs JV")
On May 26, 2017, Suffolk Downs JV, a joint venture in which we have a 21.2% equity interest, sold the property comprising the Suffolk Downs racetrack in East Boston, Massachusetts (“Suffolk Downs”) for $155,000,000, which resulted in net proceeds and a net gain to us of $15,314,000.  In addition, we were repaid $29,318,000 of principal and $6,129,000 of accrued interest on our debt investments in Suffolk Downs JV, resulting in a net gain of $11,373,000.
Vornado Capital Partners Real Estate Fund

On September 29, 2017, Vornado Capital Partners Real Estate Fund (the "Fund") completed the sale of 800 Corporate Pointe in Culver City, CA for $148,000,000. From the inception of this investment through its disposition, the Fund realized a $35,620,000 net gain.


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COMMON SHARES DATA (NYSE: VNO)
(unaudited)
 
 
 
 
 
 
 
 
 
 
 
 
 
Vornado Realty Trust common shares are traded on the New York Stock Exchange ("NYSE") under the symbol VNO.  Below is a summary of performance and dividends for VNO common shares (based on NYSE prices):
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Third Quarter
2017
 
Second Quarter
2017
 
First Quarter
2017
 
Fourth Quarter
2016
High price
 
$
97.25

(1) 
$
103.35

 
$
111.72

 
$
105.91

Low price
 
$
72.77

 
$
91.18

 
$
98.51

 
$
86.35

Closing price - end of quarter
 
$
76.88

(1) 
$
93.90

 
$
100.31

 
$
104.37

 
 
 
 
 
 
 
 
 
 
 
 
 
Annualized dividend per share
 
$
2.40

(2) 
$
2.84

 
$
2.84

 
$
2.52

JBGS expected annualized dividend
 
 
0.44

 
 
—

 
 
—

 
 
—

 
 
$
2.84

 
$
2.84

 
$
2.84

 
$
2.52

 
 
 
 
 
 
 
 
 
 
 
 
 
Annualized dividend yield - on closing price
 
 
3.1
%
 
 
3.0
%
 
 
2.8
%
 
 
2.4
%
 
 
 
 
 
 
 
 
 
 
 
 
 
Outstanding shares, Class A units and convertible preferred units as converted, excluding stock options (in thousands)
 
 
203,138

 
 
202,518

 
 
202,453

 
 
201,823

 
 
 
 
 
 
 
 
 
 
 
 
 
Closing market value of outstanding shares, Class A units and convertible preferred units as converted, excluding stock options
 
$
15.6 Billion

 
$
19.0 Billion

 
$
20.3 Billion

 
$
21.1 Billion

____________________
(1) Prior to the July 17, 2017 spin-off of JBGS Properties (NYSE: JBGS), which had a September 29, 2017 quarter ended closing share price of $34.21 ($17.10 adjusted for the 1:2 distribution).
(2) The third quarter annualized 2017 dividend is after the July 17, 2017 spin-off of JBGS.

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FINANCIAL HIGHLIGHTS
(unaudited and in thousands, except per share amounts)
 
Three Months Ended
 
Nine Months Ended September 30,
 
September 30,
 
June 30, 2017
 
 
2017
 
2016
 
 
2017
 
2016
Total revenues
$
528,755

 
$
502,753

 
$
511,087

 
$
1,547,900

 
$
1,489,768

 
 
 
 
 
 
 
 
 
 
Net (loss) income attributable to common shareholders
$
(29,026
)
 
$
66,125

 
$
115,972

 
$
134,698

 
$
172,425

Per common share:
 
 
 
 
 
 
 
 
 
Basic
$
(0.15
)
 
$
0.35

 
$
0.61

 
$
0.71

 
$
0.91

Diluted
$
(0.15
)
 
$
0.35

 
$
0.61

 
$
0.71

 
$
0.91

 
 
 
 
 
 
 
 
 
 
Net income attributable to common shareholders, as adjusted (non-GAAP)
$
68,229

 
$
48,010

 
$
59,287

 
$
165,438

 
$
119,372

Per diluted share (non-GAAP)
$
0.36

 
$
0.25

 
$
0.31

 
$
0.87

 
$
0.63

 
 
 
 
 
 
 
 
 
 
FFO, as adjusted (non-GAAP)
$
188,989

 
$
176,219

 
$
184,068

 
$
537,345

 
$
499,089

Per diluted share (non-GAAP)
$
0.99

 
$
0.93

 
$
0.97

 
$
2.81

 
$
2.63

 
 
 
 
 
 
 
 
 
 
FFO (non-GAAP)
$
100,178

 
$
225,529

 
$
257,673

 
$
564,431

 
$
658,880

FFO - Operating Partnership Basis ("OP Basis") (non-GAAP)
$
106,954

 
$
240,466

 
$
274,735

 
$
601,660

 
$
701,786

Per diluted share (non-GAAP)
$
0.52

 
$
1.19

 
$
1.35

 
$
2.95

 
$
3.47

 
 
 
 
 
 
 
 
 
 
Dividends per common share
$
0.60

 
$
0.63

 
$
0.71

 
$
2.02

 
$
1.89

 
 
 
 
 
 
 
 
 
 
FFO payout ratio (based on FFO, as adjusted)
60.6
%
 
67.7
%
 
73.2
%
 
71.9
%
 
71.9
%
FAD payout ratio
80.0
%
 
94.0
%
 
84.5
%
 
84.5
%
 
112.5
%
 
 
 
 
 
 
 
 
 
 
Weighted average shares used in determining FFO per diluted share - REIT basis
190,893

 
190,090

 
190,444

 
191,304

 
190,129

Convertible units:
 
 
 
 
 
 
 
 
 
Class A
11,707

 
11,557

 
11,732

 
11,692

 
11,523

D-13
594

 
459

 
491

 
510

 
496

G1-G4
52

 
38

 
42

 
53

 
39

Equity awards - unit equivalents
558

 
536

 
446

 
363

 
323

Weighted average shares used in determining FFO per diluted share - OP Basis
203,804

 
202,680

 
203,155

 
203,922

 
202,510


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TRAILING TWELVE MONTHS PRO FORMA CASH NET OPERATING INCOME ("NOI") (NON-GAAP)
(unaudited and in thousands)
 
Trailing Twelve Months Ended September 30, 2017
 
 
 
 
 
EBITDA,
as Adjusted(1)
 
Non-cash
Adjustments
& Other(2)
 
Add-back:
G&A
 
Cash NOI,
as Adjusted
 
Incremental NOI
from Signed
      Leases(3) (4)
 
Pro Forma
Cash NOI
New York - Office
$
697,227

 
$
(105,290
)
 
$
26,600

 
$
618,537

 
$
56,985

 
$
675,522

New York - Retail
363,099

 
(48,881
)
 
10,737

 
324,955

 
12,587

 
337,542

New York - Residential
24,609

 
(3,169
)
 
—

 
21,440

 
—

 
21,440

theMART
93,627

 
(4,333
)
 
7,228

 
96,522

 
13,474

 
109,996

555 California Street
46,560

 
(4,228
)
 
—

 
42,332

 
680

 
43,012

Total Vornado
$
1,225,122

 
$
(165,901
)
 
$
44,565

 
$
1,103,786

 
$
83,726

 
$
1,187,512

____________________
(1)
See reconciliation of net income attributable to the Operating Partnership to EBITDA, as adjusted for the trailing twelve months ended September 30, 2017 on page 68.
(2)
Trailing twelve months straight-line rent adjustments, acquired below market leases non-cash income (FAS 141) and amortization expense, inclusive of our share of unconsolidated joint ventures and elimination of non-cash EBITDA from 666 Fifth Avenue - Office.
(3)
$89,000 of capital remains to be spent for the significant leases included in the incremental NOI.
(4)
Below is a table of incremental NOI/EBITDA by quarter:
 
 
Incremental NOI
 
 
 
Incremental EBITDA
 
 
 
 
New York
 
 
 
555 California
 
 
 
 
 
New York
 
 
 
555 California
 
 
Total
 
Office
 
Retail
 
theMART
 
 Street
 
 
 
Total
 
Office
 
Retail
 
theMART
 
 Street
Q4 2017
 
$
28,761

 
$
20,925

 
$
4,322

 
$
3,210

 
$
304

 
Q4 2017
 
$
9,972

 
$
6,766

 
$
2,293

 
$
888

 
$
25

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Q1 2018
 
20,667

 
15,393

 
2,000

 
3,152

 
122

 
Q1 2018
 
8,397

 
5,216

 
2,293

 
888

 
—

Q2 2018
 
14,216

 
9,617

 
2,000

 
2,500

 
99

 
Q2 2018
 
7,545

 
4,615

 
2,293

 
637

 
—

Q3 2018
 
6,388

 
2,160

 
2,066

 
2,064

 
98

 
Q3 2018
 
2,513

 
—

 
2,311

 
202

 
—

Q4 2018
 
3,716

 
2,093

 
733

 
846

 
44

 
Q4 2018
 
881

 
—

 
881

 
—

 
—

 
 
44,987

 
29,263

 
6,799

 
8,562

 
363

 
 
 
19,336

 
9,831

 
7,778

 
1,727

 
—

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Q1 2019
 
1,519

 
—

 
733

 
776

 
10

 
Q1 2019
 
2,561

 
1,680

 
881

 
—

 
—

Q2 2019
 
2,945

 
1,525

 
733

 
684

 
3

 
Q2 2019
 
2,561

 
1,680

 
881

 
—

 
—

Q3 2019
 
1,767

 
1,525

 
—

 
242

 
—

 
Q3 2019
 
1,680

 
1,680

 
—

 
—

 
—

Q4 2019
 
1,525

 
1,525

 
—

 
—

 
—

 
Q4 2019
 
1,680

 
1,680

 
—

 
—

 
—

 
 
7,756

 
4,575

 
1,466

 
1,702

 
13

 
 
 
8,482

 
6,720

 
1,762

 
—

 
—

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Q1 2020
 
2,222

 
2,222

 
—

 
—

 
—

 
Q1 2020
 
—

 
—

 
—

 
—

 
—

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$
83,726

 
$
56,985

 
$
12,587

 
$
13,474

 
$
680

 
 
 
$
37,790

 
$
23,317

 
$
11,833

 
$
2,615

 
$
25



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CONSOLIDATED NET INCOME/EBITDA (NON-GAAP)/NOI (NON-GAAP)
(unaudited and in thousands)
 
 
Three Months Ended
 
 
September 30,
 
June 30,
 
 
2017
 
2016
 
Inc (Dec)
 
2017
Property rentals
 
$
411,838

 
$
372,167

 
$
39,671

 
$
406,025

Straight-lining of rents
 
9,170

 
27,457

 
(18,287
)
 
10,030

Amortization of acquired below-market leases, net
 
11,054

 
11,529

 
(475
)
 
12,588

Total property rentals
 
432,062

 
411,153

 
20,909

 
428,643

Tenant expense reimbursements
 
63,401

 
60,957

 
2,444

 
51,657

Fee and other income:
 
 
 
 
 
 
 
 
BMS cleaning fees
 
26,429

 
24,532

 
1,897

 
24,425

Management and leasing fees
 
2,330

 
1,935

 
395

 
2,777

Lease termination fees
 
991

 
1,819

 
(828
)
 
1,106

Other income
 
3,542

 
2,357

 
1,185

 
2,479

Total revenues
 
528,755

 
502,753

 
26,002

 
511,087

Operating expenses
 
225,226

 
213,762

 
11,464

 
215,700

Depreciation and amortization
 
104,972

 
105,877

 
(905
)
 
105,123

General and administrative
 
36,261

 
33,584

 
2,677

 
36,194

Acquisition and transaction related costs
 
61

 
1,069

 
(1,008
)
 
260

Total expenses
 
366,520

 
354,292

 
12,228

 
357,277

Operating income
 
162,235

 
148,461

 
13,774

 
153,810

(Loss) income from partially owned entities
 
(41,801
)
 
3,811

 
(45,612
)
 
46,021

(Loss) income from real estate fund investments
 
(6,308
)
 
1,077

 
(7,385
)
 
4,391

Interest and other investment income, net
 
9,306

 
6,459

 
2,847

 
9,330

Interest and debt expense
 
(85,068
)
 
(79,721
)
 
(5,347
)
 
(84,789
)
Income before income taxes
 
38,364

 
80,087

 
(41,723
)
 
128,763

Income tax (expense) benefit
 
(1,188
)
 
(4,563
)
 
3,375

 
610

Income from continuing operations
 
37,176

 
75,524

 
(38,348
)
 
129,373

(Loss) income from discontinued operations
 
(47,930
)
 
25,080

 
(73,010
)
 
18,111

Net (loss) income
 
(10,754
)
 
100,604

 
(111,358
)
 
147,484

Less net income attributable to noncontrolling interests in consolidated subsidiaries
 
(4,022
)
 
(3,658
)
 
(364
)
 
(7,677
)
Net (loss) income attributable to the Operating Partnership
 
(14,776
)
 
96,946

 
(111,722
)
 
139,807

Interest and debt expense
 
113,438

 
122,979

 
(9,541
)
 
118,585

Depreciation and amortization
 
136,621

 
172,980

 
(36,359
)
 
168,248

Income tax expense
 
1,462

 
5,102

 
(3,640
)
 
289

EBITDA (non-GAAP)
 
236,745

 
398,007

 
(161,262
)
 
426,929

NOI adjustments (see following page for details)
 
109,496

 
(14,130
)
 
123,626

 
(25,495
)
NOI (non-GAAP)
 
$
346,241

 
$
383,877

 
$
(37,636
)
 
$
401,434

 
 
 
 
 
 
 
 
 
Capitalized:
 
 
 
 
 
 
 
 
Leasing
 
$
1,280

 
$
1,730

 
$
(450
)
 
$
1,508

Development payroll
 
$
1,495

 
$
1,698

 
$
(203
)
 
$
2,476

Interest and debt expense
 
$
12,584

 
$
7,833

 
$
4,751

 
$
11,580


- 10 -
https://cdn.kscope.io/54106e6c7fd9e2a9aaf87b53812c6876-vornado1.jpg

CONSOLIDATED NET INCOME/EBITDA (NON-GAAP)/NOI (NON-GAAP)


 
 
(unaudited and in thousands)
 
 
Three Months Ended
 
 
September 30,
 
June 30,
 
 
2017
 
2016
 
Inc (Dec)
 
2017
NOI adjustments:
 
 
 
 
 
 
 
 
Acquisition and transaction related costs, including $53,581, $2,739 and $6,211, respectively, for the spin-off of JBGS
 
$
53,642

 
$
3,808

 
$
49,834

 
$
6,471

Impairment loss on investment in Pennsylvania Real Estate Investment Trust ("PREIT")
 
44,465

 
—

 
44,465

 
—

General and administrative expenses less the mark-to-market of our deferred compensation plan of $1,975, $204 and $789, respectively
 
35,495

 
40,238

 
(4,743
)
 
41,681

Non-cash adjustments for straight-line rental income and expense and amortization of acquired below and above market leases, net
 
(23,304
)
 
(46,500
)
 
23,196

 
(23,244
)
Our share of net realized/unrealized losses from our real estate fund investments
 
10,394

 
99

 
10,295

 
2,299

Net gains resulting from Urban Edge Properties ("UE") operating partnership unit issuances
 
(5,200
)
 
—

 
(5,200
)
 
(15,900
)
Real estate impairment losses
 
4,354

 
1,599

 
2,755

 
167

Net gains on sale of real estate and other
 
(1,547
)
 
(5,386
)
 
3,839

 
(15,339
)
Net gain on repayment of our Suffolk Downs JV debt investments
 
—

 
—

 
—

 
(11,373
)
Our share of Alexander's EBITDA (excluding management, leasing and development fees)
 
(12,207
)
 
(11,506
)
 
(701
)
 
(11,742
)
Dividends received from Alexander's
 
7,030

 
6,617

 
413

 
7,029

Our share of PREIT EBITDA
 
(3,731
)
 
(3,070
)
 
(661
)
 
(3,645
)
Distributions received from PREIT
 
1,361

 
1,342

 
19

 
1,284

Our share of UE EBITDA (excluding management fees)
 
(2,513
)
 
(2,514
)
 
1

 
(4,441
)
Distributions received from UE
 
1,257

 
1,143

 
114

 
1,258

Total NOI adjustments (per previous page)
 
$
109,496

 
$
(14,130
)
 
$
123,626

 
$
(25,495
)



- 11 -
https://cdn.kscope.io/54106e6c7fd9e2a9aaf87b53812c6876-vornado1.jpg

CONSOLIDATED NET INCOME/EBITDA (NON-GAAP)/NOI (NON-GAAP)
(unaudited and in thousands)
 
 
Nine Months Ended September 30,
 
 
2017
 
2016
 
Inc (Dec)
Property rentals
 
$
1,209,783

 
$
1,099,511

 
$
110,272

Straight-lining of rents
 
31,056

 
98,728

 
(67,672
)
Amortization of acquired below-market leases, net
 
34,758

 
40,664

 
(5,906
)
Total property rentals
 
1,275,597

 
1,238,903

 
36,694

Tenant expense reimbursements
 
174,091

 
162,831

 
11,260

Fee and other income:
 
 
 
 
 
 
BMS cleaning fees
 
75,925

 
68,656

 
7,269

Management and leasing fees
 
7,382

 
5,694

 
1,688

Lease termination fees
 
5,947

 
7,123

 
(1,176
)
Other income
 
8,958

 
6,561

 
2,397

Total revenues
 
1,547,900

 
1,489,768

 
58,132

Operating expenses
 
661,585

 
626,546

 
35,039

Depreciation and amortization
 
315,223

 
316,383

 
(1,160
)
General and administrative
 
122,161

 
112,593

 
9,568

Acquisition and transaction related costs
 
1,073

 
6,697

 
(5,624
)
Total expenses
 
1,100,042

 
1,062,219

 
37,823

Operating income
 
447,858

 
427,549

 
20,309

Income from partially owned entities
 
5,578

 
3,892

 
1,686

(Loss) income from real estate fund investments
 
(1,649
)
 
28,750

 
(30,399
)
Interest and other investment income, net
 
27,800

 
20,121

 
7,679

Interest and debt expense
 
(252,581
)
 
(250,034
)
 
(2,547
)
Net gains on disposition of wholly owned and partially owned assets
 
501

 
160,225

 
(159,724
)
Income before income taxes
 
227,507

 
390,503

 
(162,996
)
Income tax expense
 
(2,429
)
 
(8,921
)
 
6,492

Income from continuing operations 
 
225,078

 
381,582

 
(156,504
)
Income from discontinued operations
 
(14,501
)
 
(104,204
)
 
89,703

Net income
 
210,577

 
277,378

 
(66,801
)
Less net income attributable to noncontrolling interests in consolidated subsidiaries
 
(18,436
)
 
(26,361
)
 
7,925

Net income attributable to the Operating Partnership
 
192,141

 
251,017

 
(58,876
)
Interest and debt expense
 
348,350

 
376,898

 
(28,548
)
Depreciation and amortization
 
476,406

 
521,143

 
(44,737
)
Income tax expense
 
4,180

 
13,067

 
(8,887
)
EBITDA (non-GAAP)
 
1,021,077

 
1,162,125

 
(141,048
)
NOI adjustments (see following page for details)
 
111,365

 
(42,570
)
 
153,935

NOI (non-GAAP)
 
$
1,132,442

 
$
1,119,555

 
$
12,887

 
 
 
 
 
 
 
Capitalized:
 
 
 
 
 
 
Leasing
 
$
3,494

 
$
6,137

 
$
(2,643
)
Development payroll
 
$
4,334

 
$
5,349

 
$
(1,015
)
Interest and debt expense
 
$
34,979

 
$
21,510

 
$
13,469


- 12 -
https://cdn.kscope.io/54106e6c7fd9e2a9aaf87b53812c6876-vornado1.jpg

CONSOLIDATED NET INCOME/EBITDA (NON-GAAP)/NOI (NON-GAAP)

(unaudited and in thousands)
 
 
Nine Months Ended September 30,
 
 
2017
 
2016
 
Inc (Dec)
NOI adjustments:
 
 
 
 
 
 
General and administrative expenses less the mark-to-market of our deferred compensation plan of $5,233 and $2,625, respectively
 
$
131,365

 
$
132,085

 
$
(720
)
Non-cash adjustments for straight-line rental income and expense and amortization of acquired below and above market leases, net
 
(73,125
)
 
(152,023
)
 
78,898

Acquisition and transaction related costs, including $67,045 and $4,597, respectively, for the spin-off of JBGS
 
68,118

 
11,319

 
56,799

Impairment loss on investment in PREIT
 
44,465

 
—

 
44,465

Net gains on sale of real estate and other
 
(21,507
)
 
(168,140
)
 
146,633

Net gains resulting from UE operating partnership unit issuances
 
(21,100
)
 
—

 
(21,100
)
Our share of net realized/unrealized losses (gains) from our real estate fund investments
 
18,802

 
(8,741
)
 
27,543

Net gain on repayment of our Suffolk Downs JV debt investments
 
(11,373
)
 
—

 
(11,373
)
Real estate impairment losses
 
7,572

 
166,701

 
(159,129
)
Our share of Alexander's EBITDA (excluding management, leasing and development fees)
 
(35,511
)
 
(34,880
)
 
(631
)
Dividends received from Alexander's
 
21,090

 
19,849

 
1,241

Our share of PREIT EBITDA
 
(15,439
)
 
(8,537
)
 
(6,902
)
Distributions received from PREIT
 
3,929

 
3,906

 
23

Our share of UE EBITDA (excluding management fees)
 
(9,694
)
 
(7,539
)
 
(2,155
)
Distributions received from UE
 
3,773

 
3,430

 
343

Total NOI adjustments (per previous page)
 
$
111,365

 
$
(42,570
)
 
$
153,935


- 13 -
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NET INCOME/EBITDA (NON-GAAP)/NOI (NON-GAAP) BY SEGMENT
(unaudited and in thousands)
 
 
Three Months Ended September 30, 2017
 
 
 
Total
 
New York
 
Other
 
Property rentals
 
$
411,838

 
$
347,283

 
$
64,555

 
Straight-lining of rents
 
9,170

 
7,099

 
2,071

 
Amortization of acquired below-market leases, net
 
11,054

 
10,756

 
298

 
Total property rentals
 
432,062

 
365,138

 
66,924

 
Tenant expense reimbursements
 
63,401

 
55,984

 
7,417

 
Fee and other income:
 
 
 
 
 
 
 
BMS cleaning fees
 
26,429

 
28,155

 
(1,726
)
 
Management and leasing fees
 
2,330

 
2,101

 
229

 
Lease termination fees
 
991

 
984

 
7

 
Other income
 
3,542

 
1,247

 
2,295

 
Total revenues
 
528,755

 
453,609

 
75,146

 
Operating expenses
 
225,226

 
192,430

 
32,796

 
Depreciation and amortization
 
104,972

 
83,067

 
21,905

 
General and administrative
 
36,261

 
9,479

 
26,782

 
Acquisition and transaction related costs
 
61

 
—

 
61

 
Total expenses
 
366,520

 
284,976

 
81,544

 
Operating income (loss)
 
162,235

 
168,633

 
(6,398
)
 
(Loss) income from partially owned entities
 
(41,801
)
 
1,411

 
(43,212
)
 
Loss from real estate fund investments
 
(6,308
)
 
—

 
(6,308
)
 
Interest and other investment income, net
 
9,306

 
1,413

 
7,893

 
Interest and debt expense
 
(85,068
)
 
(61,529
)
 
(23,539
)
 
Income (loss) before income taxes
 
38,364

 
109,928

 
(71,564
)
 
Income tax expense
 
(1,188
)
 
(1,087
)
 
(101
)
 
Income (loss) from continuing operations
 
37,176

 
108,841

 
(71,665
)
 
Loss from discontinued operations
 
(47,930
)
 
—

 
(47,930
)
 
Net (loss) income
 
(10,754
)
 
108,841

 
(119,595
)
 
Less net income attributable to noncontrolling interests in consolidated subsidiaries
 
(4,022
)
 
(2,552
)
 
(1,470
)
 
Net (loss) income attributable to the Operating Partnership
 
(14,776
)
 
106,289

 
(121,065
)
 
Interest and debt expense
 
113,438

 
84,907

 
28,531

 
Depreciation and amortization
 
136,621

 
104,799

 
31,822

 
Income tax expense
 
1,462

 
1,182

 
280

 
EBITDA for the three months ended September 30, 2017 (non-GAAP) (1)
 
236,745

 
297,177

 
(60,432
)
 
NOI adjustments (see following page for details)
 
109,496

 
(17,133
)
 
126,629

 
NOI for the three months ended September 30, 2017 (non-GAAP) (1)
 
$
346,241

 
$
280,044

 
$
66,197

 
EBITDA for the three months ended September 30, 2016 (non-GAAP)
 
$
398,007

 
$
276,893

 
$
121,114

 
NOI for the three months ended September 30, 2016 (non-GAAP)
 
$
383,877

 
$
246,588

 
$
137,289

 
EBITDA, as adjusted (non-GAAP):
 
 
 
 
 
 
 
For the three months ended September 30, 2017
 
$
327,544

 
$
297,177

(2) 
$
30,367

(3) 
For the three months ended September 30, 2016
 
$
315,734

 
$
276,893

(2) 
$
38,841

(3) 
NOI, as adjusted (non-GAAP):
 
 
 
 
 
 
  
For the three months ended September 30, 2017
 
$
329,978

 
$
280,044

(2) 
$
49,934

(3) 
For the three months ended September 30, 2016
 
$
306,497

 
$
246,588

(2) 
$
59,909

(3) 
____________________
(1)
See notes on pages 18 and 19.

- 14 -
https://cdn.kscope.io/54106e6c7fd9e2a9aaf87b53812c6876-vornado1.jpg

NET INCOME/EBITDA (NON-GAAP)/NOI (NON-GAAP) BY SEGMENT

(unaudited and in thousands)
 
 
Three Months Ended September 30, 2017
 
 
Total
 
New York
 
Other
NOI adjustments:
 
 
 
 
 
 
Acquisition and transaction related costs, including $53,581 for the spin-off of JBGS
 
$
53,642

 
$
—

 
$
53,642

Impairment loss on investment in PREIT
 
44,465

 
—

 
44,465

General and administrative expenses less $1,975 mark-to-market of our deferred compensation plan
 
35,495

 
9,479

 
26,016

Non-cash adjustments for straight-line rental income and expense and amortization of acquired below and above market leases, net
 
(23,304
)
 
(21,435
)
 
(1,869
)
Our share of net realized/unrealized losses on our real estate fund investments
 
10,394

 
—

 
10,394

Net gain resulting from UE operating partnership unit issuances
 
(5,200
)
 
—

 
(5,200
)
Real estate impairment losses
 
4,354

 
—

 
4,354

Net gains on sale of real estate and other
 
(1,547
)
 
—

 
(1,547
)
Our share of Alexander's EBITDA (excluding management, leasing and development fees)
 
(12,207
)
 
(12,207
)
 
—

Dividends received from Alexander's
 
7,030

 
7,030

 
—

Our share of PREIT EBITDA
 
(3,731
)
 
—

 
(3,731
)
Distributions received from PREIT
 
1,361

 
—

 
1,361

Our share of UE EBITDA (excluding management fees)
 
(2,513
)
 
—

 
(2,513
)
Distributions received from UE
 
1,257

 
—

 
1,257

Total NOI adjustments (per previous page)
 
$
109,496

 
$
(17,133
)
 
$
126,629


- 15 -
https://cdn.kscope.io/54106e6c7fd9e2a9aaf87b53812c6876-vornado1.jpg

NET INCOME/EBITDA (NON-GAAP)/NOI (NON-GAAP) BY SEGMENT
(unaudited and in thousands)
 
 
Nine Months Ended September 30, 2017
 
 
 
Total
 
New York
 
Other
 
Property rentals
 
$
1,209,783

 
$
1,006,197

 
$
203,586

 
Straight-lining of rents
 
31,056

 
22,990

 
8,066

 
Amortization of acquired below-market leases, net
 
34,758

 
33,735

 
1,023

 
Total property rentals
 
1,275,597

 
1,062,922

 
212,675

 
Tenant expense reimbursements
 
174,091

 
155,064

 
19,027

 
Fee and other income:
 
 
 
 
 
 
 
BMS cleaning fees
 
75,925

 
80,895

 
(4,970
)
 
Management and leasing fees
 
7,382

 
6,593

 
789

 
Lease termination fees
 
5,947

 
5,773

 
174

 
Other income
 
8,958

 
5,463

 
3,495

 
Total revenues
 
1,547,900

 
1,316,710

 
231,190

 
Operating expenses
 
661,585

 
561,249

 
100,336

 
Depreciation and amortization
 
315,223

 
252,753

 
62,470

 
General and administrative
 
122,161

 
31,630

 
90,531

 
Acquisition and transaction related costs
 
1,073

 
—

 
1,073

 
Total expenses
 
1,100,042

 
845,632

 
254,410

 
Operating income (loss)
 
447,858

 
471,078

 
(23,220
)
 
Income (loss) from partially owned entities
 
5,578

 
(954
)
 
6,532

 
Loss from real estate fund investments
 
(1,649
)
 
—

 
(1,649
)
 
Interest and other investment income, net
 
27,800

 
4,384

 
23,416

 
Interest and debt expense
 
(252,581
)
 
(179,851
)
 
(72,730
)
 
Net gain on disposition of wholly owned and partially owned assets
 
501

 
—

 
501

 
Income (loss) before income taxes
 
227,507

 
294,657

 
(67,150
)
 
Income tax expense
 
(2,429
)
 
(324
)
 
(2,105
)
 
Income (loss) from continuing operations
 
225,078

 
294,333

 
(69,255
)
 
(Loss) from discontinued operations
 
(14,501
)
 
—

 
(14,501
)
 
Net income (loss)
 
210,577

 
294,333

 
(83,756
)
 
Less net income attributable to noncontrolling interests in consolidated subsidiaries
 
(18,436
)
 
(8,041
)
 
(10,395
)
 
Net income (loss) attributable to the Operating Partnership
 
192,141

 
286,292

 
(94,151
)
 
Interest and debt expense
 
348,350

 
239,032

 
109,318

 
Depreciation and amortization
 
476,406

 
328,058

 
148,348

 
Income tax expense
 
4,180

 
540

 
3,640

 
EBITDA for the nine months ended September 30, 2017 (non-GAAP) (1)
 
1,021,077

 
853,922

 
167,155

 
NOI adjustments (see following page for details)
 
111,365

 
(41,588
)
 
152,953

 
NOI for the nine months ended September 30, 2017 (non-GAAP) (1)
 
$
1,132,442

 
$
812,334

 
$
320,108

 
EBITDA for the nine months ended September 30, 2016 (non-GAAP)
 
$
1,162,125

 
$
977,517

 
$
184,608

 
NOI for the nine months ended September 30, 2016 (non-GAAP)
 
$
1,119,555

 
$
716,315

 
$
403,240

 
EBITDA, as adjusted (non-GAAP):
 
 

 
 

 
 

 
For the nine months ended September 30, 2017
 
$
943,708

 
$
853,922

(2) 
$
89,786

(3) 
For the nine months ended September 30, 2016
 
$
920,757

 
$
814,886

(2) 
$
105,871

(3) 
NOI, as adjusted (non-GAAP):
 
 

 
 

 
 

  
For the nine months ended September 30, 2017
 
$
960,057

 
$
812,334

(2) 
$
147,723

(3) 
For the nine months ended September 30, 2016
 
$
872,806

 
$
714,083

(2) 
$
158,723

(3) 
____________________
See notes on pages 18 and 19.

- 16 -
https://cdn.kscope.io/54106e6c7fd9e2a9aaf87b53812c6876-vornado1.jpg

NET INCOME/EBITDA (NON-GAAP)/NOI (NON-GAAP) BY SEGMENT

(unaudited and in thousands)
 
 
Nine Months Ended September 30, 2017
 
 
Total
 
New York
 
Other
NOI adjustments:
 
 
 
 
 
 
General and administrative expenses less $5,233 mark-to-market of our deferred compensation plan
 
$
131,365

 
$
31,630

 
$
99,735

Non-cash adjustments for straight-line rental income and expense and amortization of acquired below and above market leases, net
 
(73,125
)
 
(58,797
)
 
(14,328
)
Acquisition and transaction related costs, including $67,045 for the spin-off of JBGS
 
68,118

 
—

 
68,118

Impairment loss on investment in PREIT
 
44,465

 
—

 
44,465

Net gains on sale of real estate and other
 
(21,507
)
 
—

 
(21,507
)
Net gains resulting from UE operating partnership unit issuances
 
(21,100
)
 
—

 
(21,100
)
Our share of net realized/unrealized losses on our real estate fund investments
 
18,802

 
—

 
18,802

Net gain on repayment of our Suffolk Downs JV debt investments
 
(11,373
)
 
—

 
(11,373
)
Real estate impairment losses
 
7,572

 
—

 
7,572

Our share of Alexander's EBITDA (excluding management, leasing and development fees)
 
(35,511
)
 
(35,511
)
 
—

Dividends received from Alexander's
 
21,090

 
21,090

 
—

Our share of PREIT EBITDA
 
(15,439
)
 
—

 
(15,439
)
Distributions received from PREIT
 
3,929

 
—

 
3,929

Our share of UE EBITDA (excluding management fees)
 
(9,694
)
 
—

 
(9,694
)
Distributions received from UE
 
3,773

 
—

 
3,773

Total NOI adjustments (per previous page)
 
$
111,365

 
$
(41,588
)
 
$
152,953


- 17 -
https://cdn.kscope.io/54106e6c7fd9e2a9aaf87b53812c6876-vornado1.jpg

NOTES TO NET INCOME/EBITDA (NON-GAAP)/NOI (NON-GAAP) BY SEGMENT
 
(unaudited and in thousands)
 

(1)
Our 7.5% interest in Fashion Centre Mall/Washington Tower and our interest in Rosslyn Plaza (ranging from 43.7% to 50.4%) were not included in the spin-off of our Washington, DC segment and have been reclassified to Other. The prior year's presentation has been conformed to the current year.  In addition, on January 1, 2017, we reclassified our investment in 85 Tenth Avenue from Other to the New York segment as a result of the December 1, 2016 repayment of our loans receivable and the receipt of a 49.9% ownership interest in the property. 

(2)
The elements of "New York" EBITDA, as adjusted, are summarized below.
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
 
2017
 
2016
 
2017
 
2016
 
Office (including BMS EBITDA of $6,849 and $6,508, $18,401, and $17,981 respectively)
$
183,162

 
$
164,150

(a) 
$
522,566

 
$
484,735

(a) 
Retail
90,316

 
91,061

(a) 
269,762

 
272,083

(a) 
Residential
5,981

 
6,214

 
18,450

 
18,901

 
Alexander's
12,207

 
11,506

 
35,511

 
34,880

 
Hotel Pennsylvania
5,511

 
3,962

 
7,633

 
4,287

 
Total New York
$
297,177

 
$
276,893

 
$
853,922

 
$
814,886

 

The elements of "New York" NOI, as adjusted, are summarized below.
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
 
2017
 
2016
 
2017
 
2016
 
Office
$
179,505

 
$
157,643

(a) 
$
523,531

 
$
459,509

(a) 
Retail
81,839

 
72,178

(a) 
241,667

 
211,611

(a) 
Residential
5,418

 
5,525

 
16,300

 
16,724

 
Alexander's
7,030

 
6,617

 
21,090

 
19,849

 
Hotel Pennsylvania
6,252

 
4,625

 
9,746

 
6,390

 
Total New York
$
280,044

 
$
246,588

 
$
812,334

 
$
714,083

 
____________________
(a)
Beginning in January 2017 for office buildings with retail at the base, we have adjusted the allocation of real estate taxes between the retail and office elements above. This has no effect on our consolidated financial statements but resulted in a reallocation of $4,213 and $12,058 of income from retail to office for the three and nine months ended September 30, 2016, respectively.



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NOTES TO NET INCOME/EBITDA (NON-GAAP)/NOI (NON-GAAP) BY SEGMENT
(unaudited and in thousands)

(3)The elements of "Other" EBITDA, as adjusted, are summarized below.
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2017
 
2016
 
2017
 
2016
theMART (including trade shows)
$
24,165

 
$
21,696

 
$
72,471

 
$
70,689

555 California Street
11,643

 
11,405

 
35,870

 
35,137

Other investments
11,379

 
20,388

 
36,318

 
57,092

 
47,187

 
53,489

 
144,659

 
162,918

Corporate general and administrative expenses(a)
(22,730
)
 
(21,519
)
 
(78,952
)
 
(76,364
)
Investment income and other, net(a)
5,910

 
6,871

 
24,079

 
19,317

Total Other
$
30,367

 
$
38,841

 
$
89,786

 
$
105,871

     The elements of "Other" NOI, as adjusted, are summarized below
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2017
 
2016
 
2017
 
2016
theMART (including trade shows)
$
25,422

 
$
21,758

 
$
74,859

 
$
70,914

555 California Street
11,013

 
9,899

 
33,647

 
24,010

Other investments
7,589

 
21,381

 
15,138

 
44,482

 
44,024

 
53,038

 
123,644

 
139,406

Investment income and other, net(a)
5,910

 
6,871

 
24,079

 
19,317

Total Other
$
49,934

 
$
59,909

 
$
147,723

 
$
158,723

____________________
(a)
The amounts in these captions (for this table only) exclude the results of the mark-to-market of our deferred compensation plan of $1,975 and $204 of income for the three months ended September 30, 2017 and 2016, respectively, and $5,233 and $2,625 of income for the nine months ended September 30, 2017 and 2016, respectively.



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EBITDA, AS ADJUSTED BY REGION (NON-GAAP)
(unaudited)
The following tables set forth the percentages of EBITDA, as adjusted by geographic region.
 
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
 
2017
 
2016
 
2017
 
2016
Region:
 
 
 
 
 
 
 
 
New York
 
89
%
 
89
%
 
88
%
 
88
%
theMART, Chicago (included in "Other" segment)
 
7
%
 
7
%
 
8
%
 
8
%
555 California Street, San Francisco (included in "Other" segment)
 
4
%
 
4
%
 
4
%
 
4
%
 
 
100
%
 
100
%
 
100
%
 
100
%

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CONSOLIDATED BALANCE SHEETS
(unaudited and in thousands)
 
September 30, 2017
 
December 31, 2016
 
(Decrease) Increase
ASSETS
 
 
 
 
 
Real estate, at cost:
 
 
 
 
 
Land
$
3,124,971

 
$
3,130,825

 
$
(5,854
)
Buildings and improvements
9,824,618

 
9,684,144

 
140,474

Development costs and construction in progress
1,536,290

 
1,278,941

 
257,349

Leasehold improvements and equipment
96,820

 
93,910

 
2,910

Total
14,582,699

 
14,187,820

 
394,879

Less accumulated depreciation and amortization
(2,805,160
)
 
(2,581,514
)
 
(223,646
)
Real estate, net
11,777,539

 
11,606,306

 
171,233

Cash and cash equivalents
1,282,230

 
1,501,027

 
(218,797
)
Restricted cash
103,553

 
95,032

 
8,521

Marketable securities
193,145

 
203,704

 
(10,559
)
Tenant and other receivables, net
54,769

 
61,069

 
(6,300
)
Investments in partially owned entities
1,064,982

 
1,378,254

 
(313,272
)
Real estate fund investments
351,750

 
462,132

 
(110,382
)
Receivable arising from the straight-lining of rents, net
917,827

 
885,167

 
32,660

Deferred leasing costs, net
354,573

 
354,997

 
(424
)
Identified intangible assets, net
166,198

 
189,668

 
(23,470
)
Assets related to discontinued operations
1,774

 
3,568,613

 
(3,566,839
)
Other assets
573,780

 
508,878

 
64,902

Total Assets
$
16,842,120

 
$
20,814,847

 
$
(3,972,727
)
LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND EQUITY
 
 
 
 
 
Liabilities:
 
 
 
 
 
Mortgages payable, net
$
8,131,606

 
$
8,113,248

 
$
18,358

Senior unsecured notes, net
846,641

 
845,577

 
1,064

Unsecured term loan, net
373,354

 
372,215

 
1,139

Unsecured revolving credit facilities
—

 
115,630

 
(115,630
)
Accounts payable and accrued expenses
412,100

 
397,134

 
14,966

Deferred revenue
240,377

 
276,276

 
(35,899
)
Deferred compensation plan
106,244

 
121,183

 
(14,939
)
Liabilities related to discontinued operations
3,602

 
1,259,443

 
(1,255,841
)
Other liabilities
469,919

 
417,199

 
52,720

Total liabilities
10,583,843

 
11,917,905

 
(1,334,062
)
Redeemable noncontrolling interests
970,704

 
1,278,446

 
(307,742
)
Vornado shareholders' equity
4,571,079

 
6,898,519

 
(2,327,440
)
Noncontrolling interests in consolidated subsidiaries
716,494

 
719,977

 
(3,483
)
Total Liabilities, Redeemable Noncontrolling Interests and Equity
$
16,842,120

 
$
20,814,847

 
$
(3,972,727
)

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CAPITAL STRUCTURE
(unaudited and in thousands, except per share and unit amounts)
 
 
 
 
 
September 30, 2017
Debt (contractual balances) (non-GAAP):
 
 
 
 
 
Consolidated debt (1):
 
 
 
 
 
Mortgages payable
 
 
 
 
$
8,204,763

Senior unsecured notes
 
 
 
 
850,000

$750 Million unsecured term loan
 
 
 
 
375,000

$2.5 Billion unsecured revolving credit facilities
 
 
 
 
—

 
 
 
 
 
9,429,763

Pro rata share of debt of non-consolidated entities (excluding $1,715,283 of Toys' debt)
 
 
 
 
3,467,744

Less: Noncontrolling interests' share of consolidated debt
        (primarily 1290 Avenue of the Americas, 555 California Street, and St. Regis - retail)
 
 
 
 
(600,545
)
 
 
 
 
 
12,296,962

 
 
 
 
 
 
 
Shares/Units
 
Par Value
 
 
Perpetual Preferred:
 
 
 
 
 
5.00% preferred unit (D-16) (1 unit @ $1,000,000 per unit)
 
 
 
 
1,000

3.25% preferred units (D-17) (177,100 units @ $25 per unit)
 
 
 
 
4,428

6.625% Series G preferred shares
8,000

 
$
25.00

 
200,000

6.625% Series I preferred shares
10,800

 
25.00

 
270,000

5.70% Series K preferred shares
12,000

 
25.00

 
300,000

5.40% Series L preferred shares
12,000

 
25.00

 
300,000

 
 
 
 
 
1,075,428

 
 
 
 
 
 
 
Converted
Shares
 
September 30, 2017
Common
Share Price
 
 
Equity:
 
 
 
 
 
Common shares
189,878

 
$
76.88

 
14,597,821

Class A units
11,701

 
76.88

 
899,573

Convertible share equivalents:
 
 
 
 
 
Equity awards - unit equivalents
855

 
76.88

 
65,732

D-13 preferred units
607

 
76.88

 
46,666

G1-G4 units
51

 
76.88

 
3,921

Series A preferred shares
46

 
76.88

 
3,536

 
 
 
 
 
15,617,249

 
 
 
 
 
 
Total Market Capitalization
 
 
 
 
$
28,989,639

____________________
(1)
See reconciliation of consolidated debt, net (GAAP) to contractual debt (non-GAAP) on page 68.

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DEBT ANALYSIS
 
 
 
 
 
 
 
 
 
 
 
(unaudited and in thousands)
 
 
 
 
 
 
 
 
 
 
 
 
As of September 30, 2017
 
Total
 
Variable
 
Fixed
(Contractual debt balances) (non-GAAP)
Amount
 
Weighted
Average
Interest Rate
 
Amount
 
Weighted
Average
Interest Rate
 
Amount
 
Weighted
Average
Interest Rate
Consolidated debt(1)
$
9,429,763

 
3.45%
 
$
3,112,877

 
3.03%
 
$
6,316,886

 
3.65%
Pro rata share of debt of non-consolidated entities:
 

 
 
 
 
 
 
 
 
 
 
Toys
1,715,283

 
7.87%
 
1,248,970

 
6.91%
 
466,313

 
10.45%
All other
3,467,744

 
4.23%
 
1,378,765

 
3.02%
 
2,088,979

 
5.03%
Total
14,612,790

 
4.15%
 
5,740,612

 
3.87%
 
8,872,178

 
4.33%
Less: Noncontrolling interests' share of consolidated debt (primarily 1290 Avenue of the Americas, 555 California Street, and St. Regis - retail)
(600,545
)
 
 
 
(143,785
)
 
 
 
(456,760
)
 
 
Company's pro rata share of total debt
$
14,012,245

 
4.17%
 
$
5,596,827

 
3.89%
 
$
8,415,418

 
4.35%
 
Senior Unsecured Notes
 
 
Due 2019
 
Due 2022
 
Maturity date/put date
6/30/2019

 
1/15/2022

 
Principal amount
$
450,000

 
$
400,000

 
Coupon/effective economic interest rate
2.500%/2.581%

 
5.000%/5.057%

 
Ratings:
 

 
 

 
Moody's/S&P/Fitch
Baa2/BBB/BBB

 
Baa2/BBB/BBB

 
Debt Covenant Ratios:(2)
Senior Unsecured Notes
 
Unsecured Revolving Credit Facilities
and Unsecured Term Loan
 
 
 
Actual
 
 
Required
 
Due 2019
 
Due 2022
 
Required
 
Actual
Total outstanding debt/total assets(3)
Less than 65%
 
48%
 
48%
 
Less than 60%
 
36%
Secured debt/total assets
Less than 50%
 
40%
 
40%
 
Less than 50%
 
31%
Interest coverage ratio (annualized combined EBITDA to annualized interest expense)
Greater than 1.50
 
2.83
 
2.83
 
 
 
N/A
Fixed charge coverage
 
 
N/A
 
N/A
 
Greater than 1.40
 
2.55
Unencumbered assets/unsecured debt
Greater than 150%
 
521%
 
521%
 
 
 
N/A
Unsecured debt/cap value of unencumbered assets
 
 
N/A
 
N/A
 
Less than 60%
 
12%
Unencumbered coverage ratio
 
 
N/A
 
N/A
 
Greater than 1.50
 
10.40
Unencumbered EBITDA (non-GAAP):
Q3 2017
 
 
Annualized
 
New York
$
459,748

 
Other
28,580

 
Total
$
488,328

 
____________________
(1)
See reconciliation of consolidated debt, net (GAAP) to contractual debt (non-GAAP) on page 68.
(2)
Our debt covenant ratios are computed in accordance with the terms of our senior unsecured notes, unsecured revolving credit facilities, and unsecured term loan, as applicable.  The methodology used for these computations may differ significantly from similarly titled ratios of other companies. For additional information regarding the methodology used to compute these ratios, please see our filings with the SEC of our revolving credit facilities, senior debt indentures and applicable prospectuses and prospectus supplements.
(3)
Total assets include EBITDA capped at 7.5% under the senior unsecured notes and 6.0% under the unsecured revolving credit facilities and unsecured term loan.

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DEBT MATURITIES (CONTRACTUAL BALANCES) (NON-GAAP)
(unaudited and in thousands)
Property
 
Maturity
Date (1)
 
Spread over
LIBOR
 
Interest
Rate
 
2017
 
2018
 
2019
 
2020
 
2021
 
Thereafter
 
Total
828-850 Madison Avenue Retail Condominium
 
06/18
 
 
 
5.29%
 
$
—

 
$
80,000

 
$
—

 
$
—

 
$
—

 
$
—

 
$
80,000

33-00 Northern Boulevard
 
10/18
 
 
 
4.43%
 
—

 
60,015

 
—

 
—

 
—

 
—

 
60,015

Senior unsecured notes due 2019
 
06/19
 
 
 
2.50%
 
—

 
—

 
450,000

 
—

 
—

 
—

 
450,000

435 Seventh Avenue - retail
 
08/19
 
L+225
 
3.48%
 
—

 
—

 
97,018

 
—

 
—

 
—

 
97,018

$1.25 Billion unsecured revolving credit facility
 
11/19 (2)
 
L+105
 
—%
 
—

 
—

 
—

 
—

 
—

 
—

 
—

4 Union Square South - retail
 
11/19
 
L+215
 
3.39%
 
—

 
—

 
114,524

 
—

 
—

 
—

 
114,524

150 West 34th Street
 
06/20
 
L+225
 
3.48%
 
—

 
—

 
—

 
205,000

 
—

 
—

 
205,000

100 West 33rd Street - office and retail
 
07/20
 
L+165
 
2.88%
 
—

 
—

 
—

 
580,000

 
—

 
—

 
580,000

220 Central Park South
 
09/20
 
L+200
 
3.24%
 
—

 
—

 
—

 
950,000

 
—

 
—

 
950,000

Unsecured Term Loan
 
10/20
 
L+115
 
2.39%
 
—

 
—

 
—

 
375,000

 
—

 
—

 
375,000

Eleven Penn Plaza
 
12/20
 
 
 
3.95%
 
—

 
—

 
—

 
450,000

 
—

 
—

 
450,000

888 Seventh Avenue
 
12/20
 
 
 
3.15%
 
—

 
—

 
—

 
375,000

 
—

 
—

 
375,000

Borgata Land
 
02/21
 
 
 
5.14%
 
—

 
—

 
—

 
—

 
55,863

 
—

 
55,863

770 Broadway
 
03/21
 
 
 
2.56%
 
—

 
—

 
—

 
—

 
700,000

 
—

 
700,000

909 Third Avenue
 
05/21
 
 
 
3.91%
 
—

 
—

 
—

 
—

 
350,000

 
—

 
350,000

606 Broadway
 
05/21
 
L+300
 
4.24%
 
—

 
—

 
—

 
—

 
34,810

 
—

 
34,810

555 California Street
 
09/21
 
 
 
5.10%
 
—

 
—

 
—

 
—

 
572,533

 
—

 
572,533

theMART
 
09/21
 
 
 
2.70%
 
—

 
—

 
—

 
—

 
675,000

 
—

 
675,000

655 Fifth Avenue
 
10/21
 
L+140
 
2.64%
 
—

 
—

 
—

 
—

 
140,000

 
—

 
140,000

Two Penn Plaza
 
12/21
 
(3) 
 
4.23%
 
—

 
—

 
—

 
—

 
575,000

 
—

 
575,000

Senior unsecured notes due 2022
 
01/22
 
 
 
5.00%
 
—

 
—

 
—

 
—

 
—

 
400,000

 
400,000

$1.25 Billion unsecured revolving credit facility
 
02/22
 
L+100
 
—%
 
—

 
—

 
—

 
—

 
—

 
—

 
—

1290 Avenue of the Americas
 
11/22
 
 
 
3.34%
 
—

 
—

 
—

 
—

 
—

 
950,000

 
950,000

697-703 Fifth Avenue (St. Regis - retail)
 
12/22
 
L+180
 
3.04%
 
—

 
—

 
—

 
—

 
—

 
450,000

 
450,000

666 Fifth Avenue Retail Condominium
 
03/23
 
 
 
3.61%
 
—

 
—

 
—

 
—

 
—

 
390,000

 
390,000

350 Park Avenue
 
01/27
 
 
 
3.92%
 
—

 
—

 
—

 
—

 
—

 
400,000

 
400,000

Total consolidated debt (contractual)
 
 
 
 
 
 
 
$
—

 
$
140,015

 
$
661,542

 
$
2,935,000

 
$
3,103,206

 
$
2,590,000

 
$
9,429,763

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Weighted average rate
 
 
 
 
 
 
 
—
%
 
4.92
%
 
2.80
%
 
3.17
%
 
3.59
%
 
3.67
%
 
3.45
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fixed rate debt
 
 
 
 
 
 
 
$
—

 
$
140,015

 
$
450,000

 
$
825,000

 
$
2,761,871

 
$
2,140,000

 
$
6,316,886

Fixed weighted average rate expiring
 
 
 
 
 
 
 
—
%
 
4.92
%
 
2.50
%
 
3.59
%
 
3.67
%
 
3.81
%
 
3.65
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Floating rate debt
 
 
 
 
 
 
 
$
—

 
$
—

 
$
211,542

 
$
2,110,000

 
$
341,335

 
$
450,000

 
$
3,112,877

Floating weighted average rate expiring
 
 
 
 
 
 
 
—
%
 
—
%
 
3.43
%
 
3.01
%
 
2.92
%
 
3.04
%
 
3.03
%
____________________________________________________________________________________________________________________________________
(1)
Represents the extended maturity for certain loans in which we have the unilateral right to extend.
(2)
On October 17, 2017, we extended one of our two $1.25 billion unsecured revolving credit facilities from November 2019 to January 2022 with two six-month extension options. The interest rate on the extended facility was lowered from LIBOR plus 1.05% to LIBOR plus 1.00%. The facility fee remains unchanged at 20 basis points. The interest rate and facility fees are the same as our other $1.25 billion unsecured revolving credit facility, which matures in February 2021 with two six-month extension options.
(3)
Pursuant to an existing swap agreement, $408,000 of the loan bears interest at a fixed rate of 4.78% through March 2018, and the balance of the $167,000 floats through March 2018. The entire $575,000 will float thereafter for the duration of the loan.


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UNCONSOLIDATED JOINT VENTURES
(unaudited and in thousands, except square feet)
 
 
 
 
 
 
As of September 30, 2017
 
 
 
 
 
 
 
 
Contractual Debt Balances
(non-GAAP)
Joint Venture Name
 
Asset
Category
 
Percentage
Ownership at
September 30, 2017
 
Company's
Carrying
Amount
 
Company's
Pro rata
Share
 
100% of
Joint Venture
Alexander's, Inc.
 
Office/Retail
 
32.4%
 
$
125,632

 
$
406,099

 
$
1,253,393

 
 
 
 
 
 
 
 
 
 
 
PREIT
 
Retail
 
8.0%
 
66,477

 
131,396

 
1,642,374

 
 
 
 
 
 
 
 
 
 
 
UE
 
Retail
 
4.5%
 
46,542

 
64,130

 
1,420,605

 
 
 
 
 
 
 
 
 
 
 
Partially owned office buildings/land:
 
 
 
 
 
 
 
 
 
 
One Park Avenue
 
Office/Retail
 
55.0%
 
126,005

 
165,000

 
300,000

280 Park Avenue
 
Office/Retail
 
50.0%
 
121,310

 
600,000

 
1,200,000

650 Madison Avenue
 
Office/Retail
 
20.1%
 
113,837

 
161,024

 
800,000

512 West 22nd Street
 
Office/Retail
 
55.0%
 
60,621

 
34,297

 
62,359

West 57th Street properties
 
Office/Retail
 
50.0%
 
43,046

 
9,687

 
19,374

666 Fifth Avenue Office Condominium
 
Office/Retail
 
49.5%
 
38,372

 
697,600

 
1,409,292

61 Ninth Avenue
 
Office/Retail
 
45.1%
 
29,640

 
17,826

 
39,526

825 Seventh Avenue
 
Office
 
50.0%
 
6,883

 
10,250

 
20,500

85 Tenth Avenue
 
Office/Retail
 
49.9%
 
(1,020
)
 
311,875

 
625,000

Other
 
Office/Retail
 
Various
 
4,084

 
17,465

 
50,150

 
 
 
 
 
 
 
 
 
 
 
Other investments:
 
 
 
 
 
 
 
 
 
 
Independence Plaza
 
Residential
 
50.1%
 
141,306

 
275,550

 
550,000

Rosslyn Plaza
 
Office/Residential
 
43.7% to 50.4%
 
43,881

 
19,193

 
38,072

Moynihan Office Building
 
Office/Retail
 
50.1%
 
32,027

 
102,762

 
205,114

Toys "R" Us, Inc.
 
Retailer
 
32.5%
 
—

 
1,715,283

 
5,277,794

Other
 
Various
 
Various
 
66,339

 
159,590

 
853,651

 
 
 
 
 
 
$
1,064,982

 
$
4,899,027

 
$
15,767,204

 
 
 
 
 
 
 
 
 
 
 
330 Madison Avenue(1)
 
Office
 
25.0%
 
$
(53,237
)
 
$
125,000

 
$
500,000

7 West 34th Street(2)
 
Office/Retail
 
53.0%
 
(46,013
)
 
159,000

 
300,000

 
 
 
 
 
 
$
(99,250
)
 
$
284,000

 
$
800,000

____________________
(1)
Our negative basis resulted from a refinancing distribution and is included in "other liabilities" on our consolidated balance sheets.
(2)
Our negative basis results from a deferred gain from the sale of a 47.0% ownership interest in the property and is included in "other liabilities" on our consolidated balance sheets.



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https://cdn.kscope.io/54106e6c7fd9e2a9aaf87b53812c6876-vornado1.jpg

UNCONSOLIDATED JOINT VENTURES
(unaudited and in thousands)
 
 
 
 
 
 
 
Percentage
Ownership at
September 30, 2017
 
Our Share of Net (Loss) Income for the Three Months Ended September 30,
 
Our Share of EBITDA (non-GAAP) for the Three Months Ended September 30,
 
 
2017
 
2016
 
2017
 
2016
Joint Venture Name
 
 
 
 
 
 
 
 
 
New York:
 
 
 
 
 
 
 
 
 
Alexander's
32.4%
 
$
6,510

 
$
6,891

 
$
12,207

 
$
11,506

666 Fifth Avenue
49.5%
 
(4,323
)
 
(11,706
)
 
5,916

 
6,864

280 Park Avenue
50.0%
 
(4,256
)
 
(102
)
 
9,715

 
7,917

One Park Avenue
55.0%
 
1,595

 
829

 
4,613

 
3,564

650 Madison Avenue
20.1%
 
(1,094
)
 
(1,319
)
 
2,476

 
2,231

7 West 34th Street
53.0%
 
1,013

 
1,252

 
3,416

 
3,447

Independence Plaza
50.1%
 
833

 
1,184

 
5,326

 
5,439

330 Madison Avenue
25.0%
 
646

 
1,440

 
2,509

 
2,385

825 Seventh Avenue
50.0%
 
635

 
694

 
814

 
855

85 Tenth Avenue(1)
49.9%
 
298

 
—

 
5,283

 
—

West 57th Street Properties
50.0%
 
39

 
12

 
332

 
307

Other, net
Various
 
(485
)
 
246

 
1,631

 
2,529

 
 
 
1,411

 
(579
)
 
54,238

 
47,044

 
 
 
 
 
 
 
 
 
 
Other:
 
 
 
 
 
 
 
 
 
PREIT(2)
8.0%
 
(49,748
)
 
52

 
(45,058
)
 
4,748

UE(3)
4.5%
 
6,008

 
2,158

 
7,798

 
3,567

Alexander's corporate fee income
32.4%
 
1,335

 
1,894

 
1,335

 
1,894

Rosslyn Plaza(4)
43.7% to 50.4%
 
(155
)
 
(1,002
)
 
1,110

 
943

Suffolk Downs
21.2%
 
(36
)
 
(114
)
 
(37
)
 
(114
)
85 Tenth Avenue(1)
49.9%
 
—

 
2

 
—

 
8,179

Other, net(4)
Various
 
(616
)
 
1,400

 
2,393

 
4,352

 
 
 
(43,212
)
 
4,390

 
(32,459
)
 
23,569

 
 
 
 
 
 
 
 
 
 
 
 
 
$
(41,801
)
 
$
3,811

 
$
21,779

 
$
70,613

____________________
(1)
On January 1, 2017, we reclassified our investment in 85 Tenth Avenue from Other to the New York segment as a result of the December 1, 2016 repayment of our loans receivable and the receipt of a 49.9% ownership interest in the property.
(2)
Based on PREIT’s September 29, 2017 quarter ended closing share price of $10.49, the market value (“fair value” pursuant to ASC Topic 323, Investments - Equity Method and Joint Ventures) of our investment in PREIT was $65,563 or $44,465 below the carrying amount on our consolidated balance sheet. We have concluded that our investment in PREIT is “other-than-temporarily” impaired and recorded a $44,465 non-cash impairment loss on our consolidated statements of income. Our conclusion was based on a sustained trading value of PREIT stock below our carrying amount and our inability to forecast a recovery in the near-term.
(3)
2017 includes a $5,200 net gain resulting from UE operating partnership unit issuances.
(4)
Our 7.5% interest in Fashion Centre Mall/Washington Tower and our interest in Rosslyn Plaza were not included in the spin-off of our Washington, DC segment and have been reclassified to Other. The prior year's presentation has been conformed to the current year.

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UNCONSOLIDATED JOINT VENTURES
(unaudited and in thousands)
 
Percentage
Ownership at
September 30, 2017
 
Our Share of Net (Loss) Income for the
Nine Months Ended September 30,
 
Our Share of EBITDA (non-GAAP) for the Nine Months Ended September 30,
 
 
2017
 
2016
 
2017
 
2016
Joint Venture Name
 
 
 
 
 
 
 
 
 
New York:
 
 
 
 
 
 
 
 
 
666 Fifth Avenue
49.5%
 
$
(22,372
)
 
$
(33,663
)
 
$
18,019

 
$
21,505

Alexander's
32.4%
 
20,092

 
20,640

 
35,511

 
34,880

280 Park Avenue
50.0%
 
(6,482
)
 
(4,127
)
 
26,634

 
23,734

650 Madison Avenue
20.1%
 
(3,812
)
 
(3,810
)
 
6,814

 
6,781

330 Madison Avenue
25.0%
 
3,410

 
4,593

 
7,307

 
7,404

One Park Avenue
55.0%
 
3,357

 
2,514

 
12,280

 
10,824

Independence Plaza
50.1%
 
3,165

 
4,079

 
16,311

 
16,559

7 West 34th Street
53.0%
 
2,068

 
1,723

 
10,156

 
4,783

825 Seventh Avenue
50.0%
 
1,999

 
2,085

 
2,518

 
2,567

85 Tenth Avenue(1)
49.9%
 
(791
)
 
—

 
14,323

 
—

West 57th Street Properties
50.0%
 
—

 
56

 
881

 
966

Other, net
Various
 
(1,588
)
 
767

 
5,362

 
8,096

 
 
 
(954
)
 
(5,143
)
 
156,116

 
138,099

 
 
 
 
 
 
 
 
 
 
Other:
 
 
 
 
 
 
 
 
 
PREIT(2)
8.0%
 
(53,480
)
 
(4,763
)
 
(39,320
)
 
10,378

Suffolk Downs(3)
21.2%
 
26,383

 
(938
)
 
26,913

 
(938
)
UE(4)
4.5%
 
26,311

 
4,523

 
31,130

 
9,010

Alexander's corporate fee income
32.4%
 
4,351

 
5,307

 
4,351

 
5,307

Rosslyn Plaza(5)
43.7% to 50.4%
 
(352
)
 
(2,767
)
 
3,337

 
3,046

85 Tenth Avenue(1)
49.9%
 
—

 
5,519

 
—

 
21,519

Other, net(5)
Various
 
3,319

 
2,154

 
12,315

 
11,598

 
 
 
6,532

 
9,035

 
38,726

 
59,920

 
 
 
 
 
 
 
 
 
 
 
 
 
$
5,578

 
$
3,892

 
$
194,842

 
$
198,019

____________________
(1)
On January 1, 2017, we reclassified our investment in 85 Tenth Avenue from Other to the New York segment as a result of the December 1, 2016 repayment of our loans receivable and the receipt of a 49.9% ownership interest in the property.
(2)
Based on PREIT’s September 29, 2017 quarter ended closing share price of $10.49, the market value of our investment in PREIT was $65,563 or $44,465 below the carrying amount on our consolidated balance sheet. We have concluded that our investment in PREIT is “other-than-temporarily” impaired and recorded a $44,465 non-cash impairment loss on our consolidated statements of income. Our conclusion was based on a sustained trading value of PREIT stock below our carrying amount and our inability to forecast a recovery in the near-term.
(3)
In the second quarter of 2017, we recognized $26,687 of net gains, comprised of $15,314 representing our share of a net gain on the sale of Suffolk Downs and $11,373 representing the net gain on repayment of our debt investments in Suffolk Downs JV.
(4)
2017 includes a $21,100 net gain resulting from UE operating partnership unit issuances.
(5)
Our 7.5% interest in Fashion Centre Mall/Washington Tower and our interest in Rosslyn Plaza were not included in the spin-off of our Washington, DC segment and have been reclassified to Other. The prior year's presentation has been conformed to the current year.


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https://cdn.kscope.io/54106e6c7fd9e2a9aaf87b53812c6876-vornado1.jpg

SQUARE FOOTAGE in service
(unaudited and square feet in thousands)
 
 
 
Owned by Company (at share)
 
Total
Portfolio
 
Total
 
Office
 
Retail
 
Showroom
 
Other
Segment:
 
 
 
 
 
 
 
 
 
 
 
New York:
 
 
 
 
 
 
 
 
 
 
 
Office
20,242

 
16,968

 
16,785

 
—

 
183

 
—

Retail
2,709

 
2,473

 
—

 
2,473

 
—

 
—

Residential - 1,696 units
1,568

 
835

 
—

 
—

 
—

 
835

Alexander's (32.4% interest), including 312 residential units
2,437

 
790

 
288

 
419

 
—

 
83

Hotel Pennsylvania
1,400

 
1,400

 
—

 
—

 
—

 
1,400

 
28,356

 
22,466

 
17,073

 
2,892

 
183

 
2,318

 
 
 
 
 
 
 
 
 
 
 
 
Other:
 
 
 
 
 
 
 
 
 
 
 
theMART
3,689

 
3,680

 
2,010

 
116

 
1,554

 
—

555 California Street (70% interest)
1,740

 
1,218

 
1,188

 
30

 
—

 
—

Rosslyn Plaza Office and Residential - 197 units
690

 
313

 
202

 
—

 
—

 
111

Other
1,836

 
877

 
13

 
864

 
—

 
—

 
7,955

 
6,088

 
3,413

 
1,010

 
1,554

 
111

 
 
 
 
 
 
 
 
 
 
 
 
Total square feet at September 30, 2017
36,311

 
28,554

 
20,486

 
3,902

 
1,737

 
2,429

 
 
 
 
 
 
 
 
 
 
 
 
Total square feet at June 30, 2017
36,271

 
28,538

 
20,475

 
3,901

 
1,737

 
2,425

 
 
 
 
 
 
 
 
 
 
 
 
Parking Garages (not included above):
 
 
Square Feet
 
Number of
Garages
 
Number of
Spaces
 
 
 
 
New York
 
 
1,686

 
11

 
4,970

 
 
 
 
theMART
 
 
558

 
4

 
1,651

 
 
 
 
555 California Street
 
 
168

 
1

 
453

 
 
 
 
Rosslyn Plaza
 
 
508

 
4

 
1,094

 
 
 
 
Total at September 30, 2017
 
 
2,920

 
20

 
8,168

 
 
 
 


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TOP 30 TENANTS
 
 
 
 
 
 
(unaudited)
 
 
 
 
 
 
Tenants
 
Square
Footage
  At Share(1)
 
Annualized
Revenues
At Share
(non-GAAP)
  (in thousands(1)
 
% of Annualized
Revenues
At Share 
 (non-GAAP)(2)
 IPG and affiliates
 
923,896

 
$
57,412

 
2.2
%
 Facebook
 
434,658

 
40,769

 
1.5
%
 Swatch Group USA
 
25,633

 
39,612

 
1.5
%
 Macy's
 
646,434

 
37,954

 
1.4
%
 Victoria's Secret (guaranteed by L Brands, Inc.)
 
91,427

 
34,340

 
1.3
%
 Bloomberg L.P.
 
287,898

 
33,139

 
1.3
%
 AXA Equitable Life Insurance
 
336,646

 
32,615

 
1.2
%
 Google/Motorola Mobility (guaranteed by Google)
 
728,483

 
31,910

 
1.2
%
 Ziff Brothers Investments, Inc.
 
287,030

 
29,988

 
1.1
%
 McGraw-Hill Companies, Inc.
 
479,557

 
29,924

 
1.1
%
 Oath - formerly AOL (Verizon)
 
327,138

 
29,873

 
1.1
%
 The City of New York
 
565,846

 
24,842

 
0.9
%
 AMC Networks, Inc.
 
404,920

 
23,884

 
0.9
%
 Topshop
 
94,349

 
23,344

 
0.9
%
 Amazon (including its Whole Foods subsidiary)
 
308,113

 
23,227

 
0.9
%
 Fast Retailing (Uniqlo)
 
90,732

 
22,873

 
0.9
%
 Madison Square Garden
 
344,355

 
22,587

 
0.9
%
 Forever 21
 
127,779

 
22,367

 
0.8
%
 Neuberger Berman Group LLC
 
288,325

 
22,260

 
0.8
%
 J. Crew
 
250,635

 
21,100

 
0.8
%
 JCPenney
 
426,370

 
19,823

 
0.8
%
 Hollister
 
21,741

 
19,592

 
0.7
%
 Bank of America
 
232,728

 
18,585

 
0.7
%
 PricewaterhouseCoopers LLP
 
243,434

 
17,129

 
0.7
%
 Hennes & Mauritz (H&M)
 
51,363

 
15,803

 
0.6
%
 New York & Company, Inc.
 
207,585

 
14,133

 
0.5
%
 Alston & Bird LLP
 
163,883

 
13,954

 
0.5
%
 Sears Holding Company (Kmart Corporation and Sears Corporation)
 
286,705

 
13,878

 
0.5
%
 New York University
 
258,395

 
13,705

 
0.5
%
 U.S. Government
 
578,711

 
13,460

 
0.5
%
 
 
 
 
 
 
28.7
%
____________________
(1) Includes leases not yet commenced.
(2) See reconciliation of consolidated revenues to our pro rata share of total annualized revenues on page 68.

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LEASE EXPIRATIONS
NEW YORK SEGMENT
(unaudited)
 
Period of Lease
Expiration
 
Our Share of
Square Feet
of Expiring
Leases(1)
 
Weighted Average Annual
Rent of Expiring Leases
 
Percentage of
Annualized
Escalated Rent
 
 
 
Total
 
Per Sq. Ft.
 
Office:
Month to Month
 
9,000

 
$
243,000

 
$
27.00

 
—
%
 
 
 
 
 
 
 
 
 
 
 
Fourth Quarter 2017
 
74,000

 
4,924,000

 
66.54

 
0.4
%
 
 
 
 
 
 
 
 
 
 
 
First Quarter 2018
 
321,000

 
21,223,000

 
66.12

 
1.9
%
 
Second Quarter 2018
 
208,000

 
15,775,000

 
75.84

 
1.4
%
 
Third Quarter 2018
 
84,000

 
6,699,000

 
79.75

 
0.6
%
 
Fourth Quarter 2018
 
337,000

 
26,892,000

 
79.80

 
2.4
%
 
Total 2018
 
950,000

 
70,589,000

 
74.30

 
6.3
%
 
2019
 
773,000

 
52,693,000

 
68.17

 
4.7
%
 
2020
 
1,421,000

 
98,768,000

 
69.51

 
8.8
%
 
2021
 
1,202,000

 
88,531,000

 
73.65

 
7.9
%
 
2022
 
777,000

 
47,200,000

 
60.75

 
4.2
%
 
2023
 
1,938,000

 
148,609,000

 
76.68

 
13.2
%
 
2024
 
1,285,000

 
100,653,000

 
78.33

 
9.0
%
 
2025
 
793,000

 
58,393,000

 
73.64

 
5.2
%
 
2026
 
1,316,000

 
97,054,000

 
73.75

 
8.6
%
 
2027
 
978,000

 
66,816,000

 
68.32

 
5.9
%
 
Thereafter
 
4,688,000

 
289,230,000

 
61.70

 
25.7
%
 
 
 
 
 
 
 
 
 
 
Retail:
Month to Month
 
39,000

 
$
2,224,000

 
$
57.03

 
0.5
%
 
 
 
 
 
 
 
 
 
 
 
Fourth Quarter 2017
 
3,000

 
304,000

 
101.33

 
0.1
%
 
 
 
 
 
 
 
 
 
 
 
First Quarter 2018
 
67,000

 
19,574,000

 
292.15

 
4.4
%
 
Second Quarter 2018
 
21,000

 
3,160,000

 
150.48

 
0.7
%
 
Third Quarter 2018
 
42,000

 
15,969,000

 
380.21

 
1.4
%
 
Fourth Quarter 2018
 
26,000

 
6,360,000

 
244.62

 
0.6
%
 
Total 2018
 
156,000

 
45,063,000

 
288.87

 
7.1
%
 
2019
 
213,000

 
35,755,000

 
167.86

 
8.1
%
 
2020
 
69,000

 
10,375,000

 
150.36

 
2.3
%
 
2021
 
67,000

 
11,617,000

 
173.39

 
2.6
%
 
2022
 
19,000

 
4,912,000

 
258.53

 
1.1
%
 
2023
 
87,000

 
37,820,000

 
434.71

 
8.5
%
 
2024
 
156,000

 
63,800,000

 
408.97

 
14.4
%
 
2025
 
43,000

 
19,556,000

 
454.79

 
4.4
%
 
2026
 
136,000

 
43,911,000

 
322.88

 
9.9
%
 
2027
 
31,000

 
21,162,000

 
682.65

 
4.8
%
 
Thereafter
 
944,000

 
147,355,000

 
156.10

 
33.2
%
____________________
(1) Excludes storage, vacancy and other.

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https://cdn.kscope.io/54106e6c7fd9e2a9aaf87b53812c6876-vornado1.jpg

LEASE EXPIRATIONS
theMART
(unaudited)
 
Period of Lease
Expiration
 
Our Share of
Square Feet
of Expiring
Leases(1)
 
Weighted Average Annual
Rent of Expiring Leases
 
Percentage of
Annualized
Escalated Rent
 
 
 
Total
 
Per Sq. Ft.
 
Office / Showroom / Retail:
Month to Month
 
14,000

 
$
582,000

 
$
41.57

 
0.4
%
 
 
 
 
 
 
 
 
 
 
 
Fourth Quarter 2017
 
99,000

 
3,690,000

 
37.27

 
2.5
%
 
 
 
 
 
 
 
 
 
 
 
First Quarter 2018
 
50,000

 
2,495,000

 
49.90

 
1.7
%
 
Second Quarter 2018
 
16,000

 
781,000

 
48.81

 
0.5
%
 
Third Quarter 2018
 
182,000

 
6,645,000

 
36.51

 
4.5
%
 
Fourth Quarter 2018
 
50,000

 
2,247,000

 
44.94

 
1.5
%
 
Total 2018
 
298,000

 
12,168,000

 
40.83

 
8.2
%
 
2019
 
164,000

 
8,154,000

 
49.72

 
5.5
%
 
2020
 
287,000

 
12,490,000

 
43.52

 
8.4
%
 
2021
 
350,000

 
14,741,000

 
42.12

 
9.9
%
 
2022
 
566,000

 
23,647,000

 
41.78

 
15.9
%
 
2023
 
235,000

 
9,811,000

 
41.75

 
6.6
%
 
2024
 
216,000

 
8,601,000

 
39.82

 
5.8
%
 
2025
 
307,000

 
13,534,000

 
44.08

 
9.1
%
 
2026
 
172,000

 
7,443,000

 
43.27

 
5.0
%
 
2027
 
97,000

 
3,985,000

 
41.08

 
2.7
%
 
Thereafter
 
778,000

 
29,494,000

 
37.91

 
19.9
%
____________________
(1) Excludes storage, vacancy and other.



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LEASE EXPIRATIONS
555 California Street
(unaudited)
 
Period of Lease
Expiration
 
Our Share of
Square Feet
of Expiring
Leases(1)
 
Weighted Average Annual
Rent of Expiring Leases
 
Percentage of
Annualized
Escalated Rent
 
 
 
Total
 
Per Sq. Ft.
 
Office / Retail:
Month to Month
 
—

 
$
—

 
$
—

 
—

 
 
 
 
 
 
 
 
 
 
 
Fourth Quarter 2017
 
—

 
—

 
—

 
—

 
 
 
 
 
 
 
 
 
 
 
First Quarter 2018
 
—

 
—

 
—

 
—

 
Second Quarter 2018
 
6,000

 
363,000

 
60.50

 
0.5
%
 
Third Quarter 2018
 
2,000

 
147,000

 
73.50

 
0.2
%
 
Fourth Quarter 2018
 
—

 
—

 
—

 
—
%
 
Total 2018
 
8,000

 
510,000

 
63.75

 
0.7
%
 
2019
 
68,000

 
4,748,000

 
69.82

 
6.1
%
 
2020
 
101,000

 
6,228,000

 
61.66

 
7.9
%
 
2021
 
68,000

 
4,575,000

 
67.28

 
5.8
%
 
2022
 
36,000

 
2,669,000

 
74.14

 
3.4
%
 
2023
 
132,000

 
8,817,000

 
66.80

 
11.2
%
 
2024
 
79,000

 
6,393,000

 
80.92

 
8.1
%
 
2025
 
343,000

 
23,177,000

 
67.57

 
29.5
%
 
2026
 
180,000

 
12,477,000

 
69.32

 
15.9
%
 
2027
 
65,000

 
5,165,000

 
79.46

 
6.6
%
 
Thereafter
 
38,000

 
3,222,000

 
84.79

 
4.1
%
____________________
(1) Excludes storage, vacancy and other.




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LEASING ACTIVITY
(unaudited)

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

(square feet in thousands)
 
 
 
 
 
 
 
 
 
 
New York
 
 
 
555 California
Street
 
 
Office
 
Retail
 
theMART
 
Three Months Ended September 30, 2017
 
 
 
 
 
 
 
 
Total square feet leased
 
452

 
51

 
36

 
61

Our share of square feet leased:
 
405

 
38

 
36

 
43

Initial rent (1)
 
$
83.09

 
$
346.34

 
$
54.11

 
$
71.77

Weighted average lease term (years)
 
9.9

 
6.1

 
5.4

 
7.8

Second generation relet space:
 
 
 
 
 
 
 
 
Square feet
 
322

 
22

 
22

 
—

GAAP basis:
 
 
 
 
 
 
 
 
Straight-line rent (2)
 
$
81.46

 
$
89.13

 
$
62.79

 
$
—

Prior straight-line rent
 
$
72.79

 
$
112.10

 
$
46.03

 
$
—

Percentage increase (decrease)
 
11.9
%
 
(20.5
)%
(3) 
36.4
%
 
—
%
Cash basis (non-GAAP):
 
 
 
 
 
 
 
 
Initial rent (1)
 
$
83.64

 
$
87.36

 
$
61.02

 
$
—

Prior escalated rent
 
$
75.21

 
$
85.19

 
$
49.56

 
$
—

Percentage increase
 
11.2
%
 
2.5
 %
 
23.1
%
 
—
%
Tenant improvements and leasing commissions:
 
 
 
 
 
 
 
 
Per square foot
 
$
84.69

 
$
232.54

 
$
30.18

 
$
131.32

Per square foot per annum
 
$
8.55

 
$
38.12

 
$
5.59

 
$
16.83

Percentage of initial rent
 
10.2
%
 
11.0
 %
 
10.3
%
 
23.5
%
____________________
(1)
Represents the cash basis weighted average starting rent per square foot, which is generally indicative of market rents.  Most leases include free rent and periodic step-ups in rent which are not included in the initial cash basis rent per square foot but are included in the GAAP basis straight-line rent per square foot.
(2)
Represents the GAAP basis weighted average rent per square foot that is recognized over the term of the respective leases, and includes the effect of free rent and periodic step-ups in rent.
(3)
Attributable to a single lease for 20,800 square feet at share at 1290 Avenue of the Americas that was the subject of a FAS 141 below market lease upward adjustment when we acquired the property in 2007. Excluding the FAS 141 adjustment the GAAP basis increase in rent would have been 8.0%.


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LEASING ACTIVITY
(unaudited)
The leasing activity and related statistics in the table below is based on leases signed during the period and are not intended to coincide with the commencement of rental revenue in accordance with GAAP.  Second generation relet space represents square footage that has not been vacant for more than nine months and tenant improvements and leasing commissions are based on our share of square feet leased during the period.
(square feet in thousands)
 
 
 
 
 
 
 
 
 
 
New York
 
 
 
555 California
Street
 
 
Office
 
Retail
 
theMART
 
Nine Months Ended September 30, 2017
 
 
 
 
 
 
 
 
Total square feet leased
 
1,548

 
87

 
227

 
132

Our share of square feet leased:
 
1,188

 
68

 
227

 
93

Initial rent (1)
 
$
79.35

 
$
278.05

 
$
48.37

 
$
79.98

Weighted average lease term (years)
 
8.4

 
6.0

 
6.9

 
9.4

Second generation relet space:
 
 
 
 
 
 
 
 
Square feet
 
813

 
44

 
207

 
46

GAAP basis:
 
 
 
 
 
 
 
 
Straight-line rent (2)
 
$
73.89

 
$
158.51

 
$
48.53

 
$
95.09

Prior straight-line rent
 
$
64.62

 
$
140.76

 
$
37.45

 
$
80.30

Percentage increase
 
14.3
%
 
12.6
%
 
29.6
%
 
18.4
%
Cash basis (non-GAAP):
 
 
 
 
 
 
 
 
Initial rent (1)
 
$
75.52

 
$
150.88

 
$
48.27

 
$
86.49

Prior escalated rent
 
$
68.23

 
$
131.03

 
$
39.83

 
$
78.67

Percentage increase
 
10.7
%
 
15.1
%
 
21.2
%
 
9.9
%
Tenant improvements and leasing commissions:
 
 
 
 
 
 
 
 
Per square foot
 
$
74.59

 
$
156.88

 
$
42.22

 
$
111.81

Per square foot per annum
 
$
8.88

 
$
26.15

 
$
6.12

 
$
11.89

Percentage of initial rent
 
11.1
%
 
9.4
%
 
12.7
%
 
14.9
%
____________________
(1)
Represents the cash basis weighted average starting rent per square foot, which is generally indicative of market rents.  Most leases include free rent and periodic step-ups in rent which are not
included in the initial cash basis rent per square foot but are included in the GAAP basis straight-line rent per square foot.
(2)
Represents the GAAP basis weighted average rent per square foot that is recognized over the term of the respective leases, and includes the effect of free rent and periodic step-ups in rent.



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OCCUPANCY, SAME STORE EBITDA AND NOI (NON-GAAP)
 
 
 
 
 
(unaudited)
 
 
 
 
 
 
New York
 
theMART
 
555 California
Street
Occupancy rate at:
 
 
 
 
 
September 30, 2017
96.9
%
 
98.7
%
 
94.2
%
June 30, 2017
96.6
%
 
98.9
%
 
90.7
%
December 31, 2016
96.5
%
 
98.9
%
 
92.4
%
September 30, 2016
95.8
%
 
98.2
%
 
90.3
%
Same store EBITDA % increase (decrease):(1)
 
 
 
 
 
Three months ended September 30, 2017 compared to September 30, 2016
5.0
%
(2) 
11.3
 %
 
1.7
 %
Nine months ended September 30, 2017 compared to September 30, 2016
2.7
%
(2) 
3.4
 %
(3) 
(0.2
)%
Three months ended September 30, 2017 compared to June 30, 2017
4.8
%
(2) 
(1.1
)%
 
(4.1
)%
 
 
 
 
 
 
Same store NOI % increase (decrease):(1)
 
 
 
 
 
Three months ended September 30, 2017 compared to September 30, 2016
13.8
%
(2) 
17.0
 %
 
13.2
 %
Nine months ended September 30, 2017 compared to September 30, 2016
13.2
%
(2) 
5.8
 %
(3) 
37.9
 %
Three months ended September 30, 2017 compared to June 30, 2017
3.9
%
(2) 
1.6
 %
 
(2.2
)%
____________________
(1)
See pages 62 through 67 for same store EBITDA and NOI reconciliations.

 
 
 
 
 
 
EBITDA
 
NOI
 
(2)
Excluding Hotel Pennsylvania - same store % increase:
 
 
 
 
 
Three months ended September 30, 2017 compared to September 30, 2016
4.5
%
 
13.4
%
 
 
Nine months ended September 30, 2017 compared to September 30, 2016
2.3
%
 
12.8
%
 
 
Three months ended September 30, 2017 compared to June 30, 2017
5.3
%
 
4.4
%
 
 
 
 
 
 
 
(3)
The nine months ended September 30, 2017 includes a $2,000,000 reversal of an expense accrued in 2015. Excluding this amount, same store EBITDA increased by 6.2% and same store NOI increased by 8.9%.





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RESIDENTIAL STATISTICS in service
(unaudited)
 
 
 
At Vornado's Ownership Interest
 
Number of Units
 
Number of Units
 
Occupancy Rate
 
Average Monthly
Rent Per Unit
New York(1):
 
 
 
 
 
 
 
September 30, 2017
2,008
 
980
 
94.4%
 
$3,642
June 30, 2017
2,011
 
981
 
94.8%
 
$3,644
December 31, 2016
2,004
 
977
 
96.0%
 
$3,576
September 30, 2016
2,002
 
976
 
96.1%
 
$3,535
 
 
 
 
 
 
 
 
Rosslyn Plaza:
 
 
 
 
 
 
 
September 30, 2017
197
 
86
 
95.9%
 
$2,619
June 30, 2017
196
 
86
 
98.0%
 
$2,615
December 31, 2016
196
 
86
 
96.9%
 
$2,604
September 30, 2016
196
 
86
 
97.5%
 
$2,613
____________________
(1) Includes The Alexander (32.4% ownership) from the date of stabilization in the third quarter of 2016.

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DEVELOPMENT/REDEVELOPMENT SUMMARY - AS OF SEPTEMBER 30, 2017
(unaudited and in thousands, except square feet)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(At Share)
 
 
 
 
 
 
 
 
 
Full
Quarter
Stabilized
Operations
 
 
 
 
Property
Rentable
Sq. Ft.
 
Excluding Land Costs
 
 
 
 
 
 
 
Initial
Occupancy
 
Current Projects:
 
Segment
 
 
Incremental
Budget
 
Amount
Expended
 
 
 
%
Complete
 
Start
 
 
220 Central Park South - residential condominiums
 
Other
 
397,000

 
$
1,300,000

 
$
811,386

 
(1) 
 
62.4%
 
Q3 2012
 
N/A
 
N/A
Moynihan Office Building - (50.1% interest)(2)
 
New York
 
850,000

 
400,000

 
15,188

 
 
 
3.8%
 
Q2 2017
 
(3) 
 
(3) 
61 Ninth Avenue - office/retail (45.1% interest)(4)
 
New York
 
170,000

 
69,000

 
42,158

 
 
 
61.1%
 
Q1 2016
 
Q1 2018
 
Q2 2019
512 West 22nd Street - office/retail (55.0% interest)
 
New York
 
173,000

 
72,000

 
34,947

 
(5) 
 
48.5%
 
Q4 2015
 
Q2 2018
 
Q1 2020
606 Broadway - office/retail (50.0% interest)
 
New York
 
34,000

 
30,000

 
15,672

 
(6) 
 
52.2%
 
Q2 2016
 
Q3 2018
 
Q2 2020
Total current projects
 
 
 
 
 
 

 
$
919,351

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Future Opportunities:
 
Segment
 
Property
Zoning
Sq. Ft.
 
 
 
 
 
 
 

 
 
 
 
 
 
Penn Plaza - multiple opportunities - office/residential/retail
 
New York
 
TBD

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Hotel Pennsylvania - mixed use
 
New York
 
2,052,000

 
 
 
 
 
 
 
 
 
 
 
 
 
 
260 Eleventh Avenue - office    
 
New York
 
300,000

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Undeveloped Land:
 
 
 
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
29, 31, 33 West 57th Street (50.0% interest)
 
New York
 
150,000

 
 
 
 
 
 
 
 
 
 
 
 
 
 
527 West Kinzie, Chicago
 
Other
 
330,000

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total undeveloped land
 
 
 
480,000

 
 
 
 
 
 
 
 
 
 
 
 
 
 
____________________
(1) Excludes land and acquisition costs of $515,426.
(2) Excludes $115,230 for our share of the upfront contribution of $230,000. The building is subject to a ground lease which expires in 2116.
(3) To be provided in 2018.
(4) The building is subject to a ground lease which expires in 2115.
(5) Excludes land and acquisition costs of $57,000.
(6) Excludes land and acquisition costs of $22,703.


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CAPITAL EXPENDITURES,
TENANT IMPROVEMENTS AND LEASING COMMISSIONS
CONSOLIDATED
(unaudited and in thousands, except per square foot amounts)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Nine Months Ended September 30, 2017
 
Year Ended December 31,
 
 
 
2016
 
2015
Capital expenditures (accrual basis):
 
 
 
 
 
 
Expenditures to maintain assets
 
$
80,195

 
$
114,031

 
$
125,215

Tenant improvements
 
75,367

 
86,630

 
153,696

Leasing commissions
 
24,199

 
38,938

 
50,081

Non-recurring capital expenditures
 
62,292

 
55,636

 
116,875

Total capital expenditures and leasing commissions (accrual basis)
 
242,053

 
295,235

 
445,867

Adjustments to reconcile to cash basis:
 
 
 
 
 
 
Expenditures in the current period applicable to prior periods
 
106,038

 
268,101

 
156,753

Expenditures to be made in future periods for the current period
 
(113,704
)
 
(117,910
)
 
(222,469
)
Total capital expenditures and leasing commissions (cash basis)
 
$
234,387

 
$
445,426

 
$
380,151

 
 
 
 
 
 
 
Our share of square feet leased
 
1,576

 
2,307

 
2,751

Tenant improvements and leasing commissions per square foot per annum
 
$
9.30

 
$
7.79

 
$
9.10

Percentage of initial rent
 
11.1
%
 
10.0
%
 
9.8
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Nine Months Ended September 30, 2017
 
Year Ended December 31,
 
 
 
2016
 
2015
Development and redevelopment expenditures:
 
 
 
 
 
 
220 Central Park South
 
$
196,063

 
$
303,974

 
$
158,014

606 Broadway
 
11,796

 
4,234

 
—

315/345 Montgomery Street (555 California Street)
 
9,603

 
9,150

 
—

90 Park Avenue
 
6,831

 
33,308

 
29,937

Penn Plaza
 
6,303

 
11,904

 
17,701

theMART
 
6,163

 
24,788

 
—

304 Canal Street
 
3,627

 
5,941

 
1,405

Marriott Marquis Times Square - retail and signage
 
1,498

 
9,283

 
21,929

Wayne Towne Center
 
1,486

 
8,461

 
20,633

640 Fifth Avenue
 
1,029

 
46,282

 
17,899

330 West 34th Street
 
305

 
5,492

 
32,613

Other
 
30,012

 
143,748

 
190,688

 
 
$
274,716

 
$
606,565

 
$
490,819


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CAPITAL EXPENDITURES,
TENANT IMPROVEMENTS AND LEASING COMMISSIONS
NEW YORK SEGMENT
(unaudited and in thousands, except per square foot amounts)
 
 
 
 
 
 
 
 
 
Nine Months Ended September 30, 2017
 
Year Ended December 31,
 
 
 
2016
 
2015
Capital expenditures (accrual basis):
 
 
 
 
 
 
Expenditures to maintain assets
 
$
62,199

 
$
67,239

 
$
57,752

Tenant improvements
 
33,251

 
63,995

 
68,869

Leasing commissions
 
16,690

 
32,475

 
35,099

Non-recurring capital expenditures
 
50,717

 
41,322

 
81,240

Total capital expenditures and leasing commissions (accrual basis)
 
162,857

 
205,031

 
242,960

Adjustments to reconcile to cash basis:
 
 
 
 
 
 
Expenditures in the current period applicable to prior periods
 
62,948

 
159,144

 
93,105

Expenditures to be made in future periods for the current period
 
(71,138
)
 
(100,151
)
 
(118,911
)
Total capital expenditures and leasing commissions (cash basis)
 
$
154,667

 
$
264,024

 
$
217,154

 
 
 
 
 
 
 
Our share of square feet leased
 
1,256

 
1,933

 
1,920

Tenant improvements and leasing commissions per square foot per annum
 
$
9.56

 
$
7.98

 
$
10.20

Percentage of initial rent
 
10.6
%
 
9.7
%
 
8.9
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Nine Months Ended September 30, 2017
 
Year Ended December 31,
 
 
 
2016
 
2015
Development and redevelopment expenditures:
 
 
 
 
 
 
606 Broadway
 
$
11,796

 
$
4,234

 
$
—

90 Park Avenue
 
6,831

 
33,308

 
29,937

Penn Plaza
 
6,303

 
11,904

 
17,701

304 Canal Street
 
3,627

 
5,941

 
1,405

Marriott Marquis Times Square - retail and signage
 
1,498

 
9,283

 
21,929

640 Fifth Avenue
 
1,029

 
46,282

 
17,899

330 West 34th Street
 
305

 
5,492

 
32,613

Other
 
2,877

 
1,759

 
6,695

 
 
$
34,266

 
$
118,203

 
$
128,179



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CAPITAL EXPENDITURES,
TENANT IMPROVEMENTS AND LEASING COMMISSIONS
theMART
(unaudited and in thousands)
 
 
 
 
 
 
 
 
Nine Months Ended September 30, 2017
 
Year Ended December 31,
 
 
 
2016
 
2015
Capital expenditures (accrual basis):
 
 
 
 
 
 
Expenditures to maintain assets
 
$
6,202

 
$
16,343

 
$
33,958

Tenant improvements
 
7,516

 
6,722

 
30,246

Leasing commissions
 
1,094

 
1,355

 
7,175

Non-recurring capital expenditures
 
988

 
1,518

 
411

Total capital expenditures and leasing commissions (accrual basis)
 
15,800

 
25,938

 
71,790

Adjustments to reconcile to cash basis:
 
 
 
 
 
 
Expenditures in the current period applicable to prior periods
 
7,992

 
24,314

 
16,849

Expenditures to be made in future periods for the current period
 
(7,172
)
 
1,654

 
(37,949
)
Total capital expenditures and leasing commissions (cash basis)
 
$
16,620

 
$
51,906

 
$
50,690

 
 
 
 
 
 
 
Our share of square feet leased
 
227

 
269

 
762

Tenant improvements and leasing commissions per square foot per annum
 
$
6.12

 
$
5.58

 
$
6.02

Percentage of initial rent
 
12.7
%
 
11.6
%
 
15.6
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Nine Months Ended September 30, 2017
 
Year Ended December 31,
 
 
 
2016
 
2015
Development and redevelopment expenditures:
 
 
 
 
 
 
Common area enhancements
 
$
6,163

 
$
24,788

 
$
—

Other
 
509

 
1,384

 
588

 
 
$
6,672

 
$
26,172

 
$
588



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CAPITAL EXPENDITURES,
TENANT IMPROVEMENTS AND LEASING COMMISSIONS
555 CALIFORNIA STREET
 
 
 
 
 
 
(unaudited and in thousands)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Nine Months Ended September 30, 2017
 
Year Ended December 31,
 
 
 
2016
 
2015
Capital expenditures (accrual basis):
 
 
 
 
 
 
Expenditures to maintain assets
 
$
4,601

 
$
5,704

 
$
7,916

Tenant improvements
 
3,454

 
3,201

 
3,084

Leasing commissions
 
770

 
1,041

 
1,046

Non-recurring capital expenditures
 
6,403

 
3,900

 
796

Total capital expenditures and leasing commissions (accrual basis)
 
15,228

 
13,846

 
12,842

Adjustments to reconcile to cash basis:
 
 
 
 
 
 
Expenditures in the current period applicable to prior periods
 
9,777

 
12,708

 
10,994

Expenditures to be made in future periods for the current period
 
4,373

 
(3,056
)
 
7,618

Total capital expenditures and leasing commissions (cash basis)
 
$
29,378

 
$
23,498

 
$
31,454

 
 
 
 
 
 
 
Our share of square feet leased
 
93

 
106

 
69

Tenant improvements and leasing commissions per square foot per annum
 
$
11.89

 
$
9.15

 
$
8.13

Percentage of initial rent
 
14.9
%
 
11.8
%
 
9.7
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Nine Months Ended September 30, 2017
 
Year Ended December 31,
 
 
 
2016
 
2015
Development and redevelopment expenditures:
 
 
 
 
 
 
315/345 Montgomery Street
 
$
9,603

 
$
9,150

 
$
—

Other
 
—

 
—

 
260

 
 
$
9,603

 
$
9,150

 
$
260



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CAPITAL EXPENDITURES,
TENANT IMPROVEMENTS AND LEASING COMMISSIONS
OTHER
(unaudited and in thousands)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Nine Months Ended September 30, 2017
 
Year Ended December 31,
 
 
 
2016
 
2015
Capital expenditures (accrual basis)(1):
 
 
 
 
 
 
Expenditures to maintain assets
 
$
7,193

 
$
24,745

 
$
25,589

Tenant improvements
 
31,146

 
12,712

 
51,497

Leasing commissions
 
5,645

 
4,067

 
6,761

Non-recurring capital expenditures
 
4,184

 
8,896

 
34,428

Total capital expenditures and leasing commissions (accrual basis)
 
48,168

 
50,420

 
118,275

Adjustments to reconcile to cash basis:
 
 
 
 
 
 
Expenditures in the current period applicable to prior periods
 
25,321

 
71,935

 
35,805

Expenditures to be made in future periods for the current period
 
(39,767
)
 
(16,357
)
 
(73,227
)
Total capital expenditures and leasing commissions (cash basis)
 
$
33,722

 
$
105,998

 
$
80,853

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Nine Months Ended September 30, 2017
 
Year Ended December 31,
 
 
 
2016
 
2015
Development and redevelopment expenditures:
 
 
 
 
 
 
220 Central Park South
 
$
196,063

 
$
303,974

 
$
158,014

Wayne Towne Center
 
1,486

 
8,461

 
20,633

Other
 
26,626

 
140,605

 
183,145

 
 
$
224,175

 
$
453,040

 
$
361,792

____________________
(1)
Effective July 17, 2017, the date of the spin-off of our Washington, DC segment, capital expenditures and leasing commissions by our former Washington, DC segment have been reclassified to the Other segment. We have reclassified the prior period capital expenditures and leasing commissions to conform to the current prior period presentation.




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NEW YORK SEGMENT
PROPERTY TABLE
 
 
%
Ownership
 
%
Occupancy
 
Weighted
Average
Annual Rest
PSF (1)
 
Square Feet
 
Encumbrances
(non-GAAP)
(in thousands) (2)
 
Major Tenants
Property
 
 
 
 
Total
Property
 
In Service
 
Under Development
or Not Available
for Lease
 
 
NEW YORK:
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 
Penn Plaza:
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 
One Penn Plaza
 
 

 
 

 
 
 
 
 
 
 
 
 
 
 
Cisco, Lion Resources,
(ground leased through 2098)
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
Parsons Brinckerhoff, Symantec Corporation,
-Office
 
100.0
%
 
92.2
%
 
$
63.65

 
2,256,000

 
2,256,000

 
—

 
 

 
United Health Care, URS Corporation Group Consulting
 
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
Bank of America, Kmart Corporation,
-Retail
 
100.0
%
 
99.2
%
 
132.74

 
271,000

 
271,000

 
—

 
 

 
Shake Shack, Starbucks
 
 
100.0
%
 
92.9
%
 
71.06

 
2,527,000

 
2,527,000

 
—

 
$
—

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Two Penn Plaza
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
EMC, Information Builders, Inc.,
-Office
 
100.0
%
 
98.7
%
 
59.53

 
1,585,000

 
1,585,000

 
—

 
575,000

 
Madison Square Garden, McGraw-Hill Companies, Inc.
-Retail
 
100.0
%
 
86.4
%
 
214.70

 
49,000

 
49,000

 
—

 
—

 
Chase Manhattan Bank
 
 
100.0
%
 
98.4
%
 
64.18

 
1,634,000

 
1,634,000

 
—

 
575,000

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Eleven Penn Plaza
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 
-Office
 
100.0
%
 
99.7
%
 
58.99

 
1,114,000

 
1,114,000

 
—

 
450,000

 
Macy's, Madison Square Garden, AMC Networks, Inc.
 
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
PNC Bank National Association, Starbucks,
-Retail
 
100.0
%
 
85.2
%
 
147.48

 
38,000

 
38,000

 
—

 
—

 
Madison Square Garden
 
 
100.0
%
 
99.2
%
 
61.91

 
1,152,000

 
1,152,000

 
—

 
450,000

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
100 West 33rd Street
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 
-Office
 
100.0
%
 
98.2
%
 
62.91

 
855,000

 
855,000

 
—

 
398,402

 
IPG and affiliates
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Manhattan Mall
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 
-Retail
 
100.0
%
 
97.5
%
 
129.47

 
256,000

 
256,000

 
—

 
181,598

 
JCPenney, Aeropostale, Express, Starbucks
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
330 West 34th Street
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 
(ground leased through 2149 -
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 
34.8% ownership interest in the land)
 
 

 
 

 
 

 
 
 
 
 
 
 
 
 
New York & Company, Inc., Structure Tone,
-Office
 
100.0
%
 
95.0
%
 
62.27

 
691,000

 
691,000

 
—

 
50,150

 
Deutsch, Inc., Yodle, Inc., Footlocker, Home Advisor, Inc.
-Retail
 
100.0
%
 
—

 
—

 
18,000

 
18,000

 
—

 
—

 
 
 
 
100.0
%
 
92.6
%
 
62.27

 
709,000

 
709,000

 
—

 
50,150

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
435 Seventh Avenue
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 
-Retail
 
100.0
%
 
100.0
%
 
292.37

 
43,000

 
43,000

 
—

 
97,019

 
Hennes & Mauritz
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
7 West 34th Street
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 
-Office
 
53.0
%
 
100.0
%
 
63.68

 
458,000

 
458,000

 
—

 
300,000

 
Amazon
-Retail
 
53.0
%
 
71.8
%
 
293.32

 
21,000

 
21,000

 
—

 
—

 
Amazon
 
 
53.0
%
 
98.8
%
 
73.75

 
479,000

 
479,000

 
—

 
300,000

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
484 Eighth Avenue
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 
-Retail
 
100.0
%
 
—

 
—

 
16,000

 
—

 
16,000

 
—

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
431 Seventh Avenue
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 
-Retail
 
100.0
%
 
100.0
%
 
262.23

 
10,000

 
10,000

 
—

 
—

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
488 Eighth Avenue
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 
-Retail
 
100.0
%
 
100.0
%
 
87.57

 
6,000

 
6,000

 
—

 
—

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
267 West 34th Street
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 
-Retail
 
100.0
%
 
—

 
—

 
6,000

 
—

 
6,000

 
—

 
 

- 43 -
https://cdn.kscope.io/54106e6c7fd9e2a9aaf87b53812c6876-vornado1.jpg

NEW YORK SEGMENT
PROPERTY TABLE
 
 
%
Ownership
 
%
Occupancy
 
Weighted
Average
Annual Rest
PSF (1)
 
Square Feet
 
Encumbrances
(non-GAAP)
(in thousands) (2)
 
Major Tenants
Property
 
 
 
 
Total
Property
 
In Service
 
Under Development
or Not Available
for Lease
 
 
NEW YORK (Continued):
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 
Penn Plaza (Continued):
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 
138-142 West 32nd Street
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 
-Retail
 
100.0
%
 
35.3
%
 
$
66.03

 
8,000

 
8,000

 
—

 
$
—

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
150 West 34th Street
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 
-Retail
 
100.0
%
 
100.0
%
 
71.73

 
78,000

 
78,000

 
—

 
205,000

 
Old Navy
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
137 West 33rd Street
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 
-Retail
 
100.0
%
 
100.0
%
 
93.89

 
3,000

 
3,000

 
—

 
—

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
265 West 34th Street
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 
-Retail
 
100.0
%
 
100.0
%
 
503.75

 
3,000

 
3,000

 
—

 
—

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
131-135 West 33rd Street
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 
-Retail
 
100.0
%
 
100.0
%
 
41.28

 
23,000

 
23,000

 
—

 
—

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
486 Eighth Avenue
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 
-Retail
 
100.0
%
 
—

 
—

 
3,000

 
—

 
3,000

 
—

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Penn Plaza
 
 

 
 

 
 
 
7,811,000

 
7,786,000

 
25,000

 
2,257,169

 
 
Midtown East:
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 
909 Third Avenue
 
 

 
 

 
 
 
 
 
 
 
 
 
 
 
IPG and affiliates, Forest Laboratories,
(ground leased through 2063)
 
 

 
 

 
 
 
 
 
 
 
 
 
 
 
Geller & Company, Morrison Cohen LLP, Robeco USA Inc.,
-Office
 
100.0
%
 
96.5
%
 
59.59 (3)

 
1,346,000

 
1,346,000

 
—

 
350,000

 
United States Post Office, The Procter & Gamble Distributing LLC
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
150 East 58th Street
 
 

 
 

 
 

 
 
 
 
 
 
 
 

 
 
-Office
 
100.0
%
 
95.7
%
 
74.14

 
539,000

 
539,000

 
—

 
 

 
Castle Harlan, Tournesol Realty LLC (Peter Marino),
-Retail
 
100.0
%
 
13.1
%
 
17.86

 
3,000

 
3,000

 
—

 
 

 
 
 
 
100.0
%
 
95.2
%
 
73.83

 
542,000

 
542,000

 
—

 
—

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
715 Lexington Avenue
 
 

 
 

 
 
 
 
 
 
 
 
 
 
 
 
-Retail
 
100.0
%
 
100.0
%
 
260.06

 
23,000

 
23,000

 
—

 
—

 
New York & Company, Inc., Zales, Jonathan Adler
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
966 Third Avenue
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 
-Retail
 
100.0
%
 
100.0
%
 
93.59

 
7,000

 
7,000

 
—

 
—

 
McDonald's
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
968 Third Avenue
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 
-Retail
 
50.0
%
 
—

 
—

 
6,000

 
6,000

 
—

 
—

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Midtown East
 
 

 
 

 
 
 
1,924,000

 
1,924,000


—


350,000

 
 

- 44 -
https://cdn.kscope.io/54106e6c7fd9e2a9aaf87b53812c6876-vornado1.jpg

NEW YORK SEGMENT
PROPERTY TABLE
 
 
%
Ownership
 
%
Occupancy
 
Weighted
Average
Annual Rest
PSF (1)
 
Square Feet
 
Encumbrances
(non-GAAP)
(in thousands) (2)
 
Major Tenants
Property
 
 
 
 
Total
Property
 
In Service
 
Under Development
or Not Available
for Lease
 
 
NEW YORK (Continued):
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 
Midtown West:
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 
888 Seventh Avenue
 
 

 
 

 
 
 
 
 
 
 
 
 
 
 
TPG-Axon Capital, Lone Star US Acquisitions LLC,
(ground leased through 2067)
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
Pershing Square Capital Management, Hutchin Hill
-Office
 
100.0
%
 
96.2
%
 
$
93.73

 
873,000

 
873,000

 
—

 
$
375,000

 
Vornado Executive Headquarters
-Retail
 
100.0
%
 
100.0
%
 
261.35

 
15,000

 
15,000

 
—

 
—

 
Redeye Grill L.P.
 
 
100.0
%
 
96.3
%
 
96.56

 
888,000

 
888,000


—


375,000

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
57th Street - 2 buildings
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 
-Office
 
50.0
%
 
84.6
%
 
47.78

 
81,000

 
81,000

 
—

 
19,374

 
 
-Retail
 
50.0
%
 
100.0
%
 
134.94

 
22,000

 
22,000

 
—

 
—

 
 
 
 
50.0
%
 
87.9
%
 
66.40

 
103,000

 
103,000


—


19,374

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
825 Seventh Avenue
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 
-Office
 
50.0
%
 
100.0
%
 
78.70

 
165,000

 
165,000

 
—

 
20,500

 
Young & Rubicam
-Retail
 
100.0
%
 
100.0
%
 
271.95

 
4,000

 
4,000

 
—

 
—

 
Lindy's
 
 
51.2
%
 
100.0
%
 
83.27

 
169,000

 
169,000


—


20,500

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Midtown West
 
 

 
 

 
 
 
1,160,000

 
1,160,000

 
—

 
414,874

 
 
Park Avenue:
 
 

 
 

 
 

 
 

 
 
 
 

 
 

 
 
280 Park Avenue
 
 

 
 

 
 

 
 

 
 
 
 

 
 

 
Cohen & Steers Inc., GIC Inc., Franklin Templeton Co. LLC,
-Office
 
50.0
%
 
97.3
%
 
100.65

 
1,228,000

 
1,228,000

 
—

 
1,200,000

 
PJT Partners, Investcorp International Inc., Wells Fargo
-Retail
 
50.0
%
 
100.0
%
 
96.69

 
26,000

 
26,000

 
—

 
—

 
Scottrade Inc., Starbucks, The Four Seasons Restaurant
 
 
50.0
%
 
97.4
%
 
100.57

 
1,254,000

 
1,254,000


—


1,200,000

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
350 Park Avenue
 
 

 
 

 
 

 
 

 
 
 
 

 
 

 
Kissinger Associates Inc., Ziff Brothers Investment Inc.,
-Office
 
100.0
%
 
100.0
%
 
104.33

 
554,000

 
554,000

 
—

 
400,000

 
MFA Financial Inc., M&T Bank
-Retail
 
100.0
%
 
100.0
%
 
216.69

 
17,000

 
17,000

 
—

 
—

 
Fidelity Investment, AT&T Wireless, Valley National Bank
 
 
100.0
%
 
100.0
%
 
107.67

 
571,000

 
571,000


—


400,000

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Park Avenue
 
 

 
 

 
 
 
1,825,000

 
1,825,000

 
—

 
1,600,000

 
 
Grand Central:
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 
90 Park Avenue
 
 

 
 

 
 

 
 
 
 
 
 
 
 

 
Alston & Bird, Amster, Rothstein & Ebenstein,
 
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
Capital One, Factset Research Systems Inc., Foley & Lardner,
-Office
 
100.0
%
 
98.3
%
 
77.86

 
937,000

 
937,000

 
—

 
 

 
PricewaterhouseCoopers LLP
-Retail
 
100.0
%
 
100.0
%
 
131.38

 
24,000

 
24,000

 
—

 
 

 
Citibank, Starbucks
 
 
100.0
%
 
98.3
%
 
79.19

 
961,000

 
961,000


—

 
—

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
330 Madison Avenue
 
 

 
 

 
 

 
 
 
 
 
 
 
 

 
Guggenheim Partners LLC, HSBC Bank AFS, Glencore Ltd.,
-Office
 
25.0
%
 
98.1
%
 
75.60

 
813,000

 
813,000

 
—

 
500,000

 
Jones Lang LaSalle Inc., Wells Fargo, American Century
-Retail
 
25.0
%
 
100.0
%
 
318.54

 
33,000

 
33,000

 
—

 
—

 
Ann Taylor Retail Inc., Citibank, Starbucks
 
 
25.0
%
 
98.1
%
 
85.08

 
846,000

 
846,000


—


500,000

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
510 Fifth Avenue
 
 

 
 

 
 
 
 
 
 
 
 
 
 
 
 
-Retail
 
100.0
%
 
100.0
%
 
147.17

 
66,000

 
66,000

 
—

 
—

 
The North Face, Elie Tahari
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Grand Central
 
 

 
 

 
 
 
1,873,000

 
1,873,000

 
—

 
500,000

 
 

- 45 -
https://cdn.kscope.io/54106e6c7fd9e2a9aaf87b53812c6876-vornado1.jpg

NEW YORK SEGMENT
PROPERTY TABLE
 
 
%
Ownership
 
%
Occupancy
 
Weighted
Average
Annual Rest
PSF (1)
 
Square Feet
 
Encumbrances
(non-GAAP)
(in thousands) (2)
 
Major Tenants
Property
 
 
 
 
Total
Property
 
In Service
 
Under Development
or Not Available
for Lease
 
 
NEW YORK (Continued):
 
 
 
 

 
 

 
 

 
 

 
 

 
 

 
 
Madison/Fifth:
 
 
 
 

 
 

 
 

 
 
 
 

 
 
 
 
640 Fifth Avenue
 
 
 
 

 
 
 
 
 
 
 
 
 
 
 
Fidelity Investments, Owl Creek Asset Management LP,
-Office
 
100.0%
 
90.6
%
 
$
90.53

 
246,000

 
246,000

 
—

 
 
 
Stifel Financial Corp., GCA Savvian Inc.
-Retail
 
100.0%
 
96.1
%
 
918.65

 
68,000

 
68,000

 
—

 
 
 
Victoria's Secret (guaranteed by L Brands, Inc.), Dyson
 
 
100.0%
 
91.8
%
 
269.87

 
314,000

 
314,000

 
—

 
$
—

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
666 Fifth Avenue
 
 
 
 

 
 

 
 

 
 
 
 

 
 
 
Colliers International NY LLC,
-Office (Office Condo)
 
49.5%
 
—

 
—

 
1,403,000

 
—

 
1,403,000

 
1,409,292

 
Integrated Holding Group, Vinson & Elkins LLP
-Retail (Office Condo)
 
49.5%
 
—

 
—

 
45,000

 
—

 
45,000

 
—

 
HSBC Bank USA, Citibank
-Retail (Retail Condo)
 
100.0%
(4) 
100.0
%
 
452.46

 
114,000

 
114,000

 
—

 
390,000

 
Fast Retailing (Uniqlo), Hollister, Tissot
 
 
 
 
100.0
%
 
452.46

 
1,562,000

 
114,000

 
1,448,000

 
1,799,292

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
595 Madison Avenue
 
 
 
 

 
 

 
 

 
 
 
 

 
 
 
Beauvais Carpets, Levin Capital Strategies LP,
-Office
 
100.0%
 
95.3
%
 
81.07

 
294,000

 
294,000

 
—

 
 
 
Cosmetech Mably Int'l LLC.
-Retail
 
100.0%
 
36.0
%
 
1,225.30

 
30,000

 
30,000

 
—

 
 
 
Coach
 
 
100.0%
 
89.8
%
 
187.02

 
324,000

 
324,000

 
—

 
—

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
650 Madison Avenue
 
 
 
 

 
 

 
 

 
 
 
 

 
 
 
Memorial Sloan Kettering Cancer Center, Polo Ralph Lauren,
-Office
 
20.1%
 
96.5
%
 
113.55

 
526,000

 
526,000

 
—

 
800,000

 
Willett Advisors LLC
-Retail
 
20.1%
 
28.5
%
 
1,227.08

 
67,000

 
67,000

 
—

 
—

 
Bottega Veneta Inc., Moncler USA Inc.
 
 
20.1%
 
88.8
%
 
239.36

 
593,000

 
593,000

 
—

 
800,000

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
689 Fifth Avenue
 
 
 
 

 
 

 
 

 
 
 
 

 
 
 
 
-Office
 
100.0%
 
90.0
%
 
80.33

 
81,000

 
81,000

 
—

 
 

 
Yamaha Artist Services Inc., Brunello Cucinelli USA Inc.
-Retail
 
100.0%
 
100.0
%
 
820.61

 
17,000

 
17,000

 
—

 
 

 
MAC Cosmetics, Massimo Dutti
 
 
100.0%
 
91.7
%
 
208.75

 
98,000

 
98,000

 
—

 
—

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
655 Fifth Avenue
 
 
 
 

 
 
 
 
 
 
 
 
 
 
 
 
-Retail
 
92.5%
 
100.0
%
 
240.42

 
57,000

 
57,000

 
—

 
140,000

 
Ferragamo
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
697-703 Fifth Avenue (St. Regis - retail)
 
 
 
 

 
 
 
 
 
 
 
 
 
 
 
 
-Retail
 
74.3%
 
100.0
%
 
2,564.54

 
26,000

 
26,000

 
—

 
450,000

 
Swatch Group USA, Harry Winston
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Madison/Fifth
 
 
 
 

 
 
 
2,974,000


1,526,000


1,448,000


3,189,292

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Midtown South:
 
 
 
 

 
 

 
 

 
 

 
 

 
 

 
 
770 Broadway
 
 
 
 

 
 

 
 
 
 
 
 
 
 

 
 
-Office
 
100.0%
 
100.0
%
 
85.81

 
991,000

 
991,000

 
—

 
700,000

 
Facebook, Oath - formerly AOL (Verizon), J. Crew
-Retail
 
100.0%
 
100.0
%
 
57.17

 
168,000

 
168,000

 
—

 
—

 
Ann Taylor Retail Inc., Bank of America, Kmart Corporation
 
 
100.0%
 
100.0
%
 
81.65

 
1,159,000

 
1,159,000

 
—

 
700,000

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
One Park Avenue
 
 
 
 

 
 

 
 
 
 
 
 
 
 

 
New York University, Clarins USA Inc.,
 
 
 
 
 

 
 

 
 
 
 
 
 
 
 

 
Public Service Mutual Insurance, Robert A.M. Stern Architect,
-Office
 
55.0%
 
96.3
%
 
54.14

 
862,000

 
862,000

 
—

 
300,000

 
automotiveMastermind
-Retail
 
55.0%
 
100.0
%
 
85.53

 
77,000

 
77,000

 
—

 
—

 
Bank of Baroda, Citibank, Equinox, Men's Wearhouse
 
 
55.0%
 
96.6
%
 
56.71

 
939,000

 
939,000

 
—

 
300,000

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
4 Union Square South
 
 
 
 

 
 
 
 
 
 
 
 
 
 
 
Burlington Coat Factory, Whole Foods Market, DSW,
-Retail
 
100.0%
 
100.0
%
 
105.84

 
206,000

 
206,000

 
—

 
114,524

 
Forever 21
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
692 Broadway
 
 
 
 

 
 
 
 
 
 
 
 
 
 
 
 
-Retail
 
100.0%
 
100.0
%
 
89.86

 
36,000

 
36,000

 
—

 
—

 
Equinox, Oath - formerly AOL (Verizon)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Other
 
 
 
 

 
 

 
 

 
 

 
 

 
 

 
 
-Retail
 
50.0%
 
—

 
—

 
36,000

 
—

 
36,000

 
30,000

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Midtown South
 
 
 
 

 
 
 
2,376,000

 
2,340,000

 
36,000

 
1,144,524

 
 

- 46 -
https://cdn.kscope.io/54106e6c7fd9e2a9aaf87b53812c6876-vornado1.jpg

NEW YORK SEGMENT
PROPERTY TABLE
 
 
%
Ownership
 
%
Occupancy
 
Weighted
Average
Annual Rest
PSF (1)
 
Square Feet
 
Encumbrances
(non-GAAP)
(in thousands) (2)
 
Major Tenants
Property
 
 
 
 
Total
Property
 
In Service
 
Under Development
or Not Available
for Lease
 
 
NEW YORK (Continued):
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 
Rockefeller Center:
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 
1290 Avenue of the Americas
 
 

 
 

 
 
 
 
 
 
 
 
 
 
 
AXA Equitable Life Insurance, Hachette Book Group Inc.,
 
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
Bryan Cave LLP, Neuberger Berman Group LLC, SSB Realty LLC,
 
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
Cushman & Wakefield, Fitzpatrick,
-Office
 
70.0
%
 
100.0
%
 
$
81.58

 
2,038,000

 
2,038,000

 
—

 
$
950,000

 
Cella, Harper & Scinto, Columbia University
-Retail
 
70.0
%
 
100.0
%
 
174.45

 
76,000

 
76,000

 
—

 
—

 
Duane Reade, JPMorgan Chase Bank, Sovereign Bank, Starbucks
 
 
70.0
%
 
100.0
%
 
84.92

 
2,114,000

 
2,114,000

 
—

 
950,000

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
608 Fifth Avenue
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 
(ground leased through 2033)
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 
-Office
 
100.0
%
 
99.8
%
 
64.72

 
93,000

 
93,000

 
—

 
 

 
 
-Retail
 
100.0
%
 
100.0
%
 
459.44

 
44,000

 
44,000

 
—

 
 

 
Topshop
 
 
100.0
%
 
99.9
%
 
191.49

 
137,000

 
137,000

 
—

 
—

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Rockefeller Center
 
 

 
 

 
 
 
2,251,000


2,251,000

 
—

 
950,000

 
 
Wall Street/Downtown:
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 
40 Fulton Street
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 
-Office
 
100.0
%
 
87.9
%
 
40.80

 
246,000

 
246,000

 
—

 
 

 
Market News International Inc., Sapient Corp.
-Retail
 
100.0
%
 
100.0
%
 
101.28

 
5,000

 
5,000

 
—

 
 

 
TD Bank
 
 
100.0
%
 
88.1
%
 
42.01

 
251,000

 
251,000

 
—

 
—

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Soho:
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 
478-486 Broadway - 2 buildings
 
 

 
 

 
 
 
 
 
 
 
 
 
 
 
 
-Retail
 
100.0
%
 
100.0
%
 
243.53

 
65,000

 
65,000

 
—

 
 

 
Topshop, Madewell, J. Crew
-Residential (10 units)
 
100.0
%
 
100.0
%
 
 

 
20,000

 
20,000

 
—

 
 

 
 
 
 
100.0
%
 
 

 
 

 
85,000

 
85,000

 
—

 
—

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
443 Broadway
 
 

 
 

 
 
 
 
 
 
 
 
 
 
 
 
Retail
 
100.0
%
 
100.0
%
 
95.63

 
16,000

 
16,000

 
—

 
—

 
Necessary Clothing
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
304 Canal Street
 
 

 
 

 
 
 
 
 
 
 
 
 
 
 
 
-Retail
 
100.0
%
 
—

 
—

 
4,000

 
—

 
4,000

 
 

 
 
-Residential (4 units)
 
100.0
%
 
100.0
%
 
 

 
9,000

 
9,000

 
—

 
 

 
 
 
 
100.0
%
 
 

 
 

 
13,000

 
9,000

 
4,000

 
—

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
334 Canal Street
 
 

 
 

 
 
 
 
 
 
 
 
 
 
 
 
-Retail
 
100.0
%
 
—

 
—

 
4,000

 
4,000

 
—

 
 

 
 
-Residential (4 units)
 
100.0
%
 
75.0
%
 
 

 
11,000

 
11,000

 
—

 
 

 
 
 
 
100.0
%
 
55.0
%
 
 

 
15,000

 
15,000

 
—

 
—

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
155 Spring Street
 
 

 
 

 
 
 
 
 
 
 
 
 
 
 
 
-Retail
 
100.0
%
 
93.6
%
 
132.89

 
50,000

 
50,000

 
—

 
—

 
Vera Bradley
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
148 Spring Street
 
 

 
 

 
 
 
 
 
 
 
 
 
 
 
 
-Retail
 
100.0
%
 
100.0
%
 
185.48

 
8,000

 
8,000

 
—

 
—

 
Dr. Martens
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
150 Spring Street
 
 

 
 

 
 
 
 
 
 
 
 
 
 
 
 
-Retail
 
100.0
%
 
100.0
%
 
281.72

 
6,000

 
6,000

 
—

 
 

 
Sandro
-Residential (1 unit)
 
100.0
%
 
100.0
%
 
 

 
1,000

 
1,000

 
—

 
 

 
 
 
 
100.0
%
 
 

 
 

 
7,000

 
7,000

 
—

 
—

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Other
 
 

 
 

 
 
 
 
 
 
 
 
 
 
 
 
-Residential (26 units)
 
100.0
%
 
84.6
%
 
 

 
35,000

 
35,000

 
—

 
—

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Soho
 
 

 
 

 
 
 
229,000


225,000


4,000

 
—

 
 

- 47 -
https://cdn.kscope.io/54106e6c7fd9e2a9aaf87b53812c6876-vornado1.jpg

NEW YORK SEGMENT
PROPERTY TABLE
 
 
%
Ownership
 
%
Occupancy
 
Weighted
Average
Annual Rest
PSF (1)
 
Square Feet
 
Encumbrances
(non-GAAP)
(in thousands) (2)
 
Major Tenants
Property
 
 
 
 
Total
Property
 
In Service
 
Under Development
or Not Available
for Lease
 
 
NEW YORK (Continued):
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 
Times Square:
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 
1540 Broadway
 
 

 
 

 
 
 
 
 
 
 
 
 
 
 
Forever 21, Planet Hollywood, Disney, Sunglass Hut,
-Retail
 
100.0
%
 
100.0
%
 
$
256.85

 
160,000

 
160,000

 
—

 
$
—

 
MAC Cosmetics, U.S. Polo
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1535 Broadway (Marriott Marquis - retail and signage)
 
 
 
 

 
 
 
 
 
 
 
 
 
 
 
 
(ground and building leased through 2032)
 
 

 
 

 
 
 
 
 
 
 
 
 
 
 
 
-Retail
 
100.0
%
 
56.0
%
 
1,183.49

 
46,000

 
46,000

 
—

 
 

 
T-Mobile, Invicta, Swatch Group USA, Laline, Sephora*
-Theatre
 
100.0
%
 
100.0
%
 
13.48

 
62,000

 
62,000

 
—

 
 

 
Nederlander-Marquis Theatre
 
 
100.0
%
 
81.2
%
 
339.46

 
108,000

 
108,000

 
—

 
—

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Times Square
 
 

 
 

 
 
 
268,000

 
268,000

 
—

 
—

 
 
Upper East Side:
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 
828-850 Madison Avenue
 
 

 
 

 
 

 
 
 
 
 
 
 
 

 
 
-Retail
 
100.0
%
 
100.0
%
 
622.02

 
18,000

 
18,000

 
—

 
80,000

 
Gucci, Chloe, Cartier, Cho Cheng, Christofle Silver Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
677-679 Madison Avenue
 
 

 
 

 
 
 
 
 
 
 
 
 
 
 
 
-Retail
 
100.0
%
 
100.0
%
 
489.21

 
8,000

 
8,000

 
—

 
 

 
Berluti
-Residential (8 units)
 
100.0
%
 
75.0
%
 
 

 
5,000

 
5,000

 
—

 
 

 
 
 
 
100.0
%
 
90.4
%
 
 

 
13,000

 
13,000

 
—

 
—

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
759-771 Madison Avenue (40 East 66th)
 
 

 
 

 
 
 
 
 
 
 
 
 
 
 
 
-Residential (5 units)
 
100.0
%
 
100.0
%
 
 

 
12,000

 
12,000

 
—

 
 

 
 
-Retail
 
100.0
%
 
66.7
%
 
1,041.89

 
11,000

 
11,000

 
—

 
 

 
John Varvatos, J. Crew
 
 
100.0
%
 
84.1
%
 
 

 
23,000

 
23,000

 
—

 
—

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1131 Third Avenue
 
 

 
 

 
 
 
 
 
 
 
 
 
 
 
 
Retail
 
100.0
%
 
100.0
%
 
156.59

 
23,000

 
23,000

 
—

 
—

 
Nike, Crunch LLC, J.Jill
Other
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 
-Retail - 2 buildings
 
100.0
%
 
100.0
%
 
—

 
15,000

 
15,000

 
—

 
 

 
 
-Residential (8 units)
 
100.0
%
 
100.0
%
 
 

 
7,000

 
7,000

 
—

 
 

 
 
 
 
100.0
%
 
 

 
 

 
22,000

 
22,000

 
—

 
—

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Upper East Side
 
 

 
 

 
 
 
99,000

 
99,000

 
—

 
80,000

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Long Island City:
 
 

 
 

 
 

 
 
 
 
 
 

 
 

 
 
33-00 Northern Boulevard (Center Building)
 
 

 
 

 
 

 
 
 
 
 
 

 
 

 
 
-Office
 
100.0
%
 
99.1
%
 
34.22

 
471,000

 
471,000

 
—

 
60,015

 
The City of New York, NYC Transit Authority
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Chelsea/Meatpacking District:
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 
260 Eleventh Avenue
 
 

 
 

 
 
 
 
 
 
 
 
 
 
 
 
(ground leased through 2114)
 
 

 
 

 
 
 
 
 
 
 
 
 
 
 
 
-Office
 
100.0
%
 
100.0
%
 
52.10

 
184,000

 
184,000

 
—

 
—

 
The City of New York
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
85 Tenth Avenue
 
 
 
 

 
 
 
 
 
 
 
 
 
 
 
Google, General Services Administration,
 
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
Telehouse International Corp., L-3 Communications,
-Office
 
49.9
%
 
100.0
%
 
85.45

 
586,000

 
586,000

 
—

 
625,000

 
Moet Hennessy USA. Inc.
-Retail
 
49.9
%
 
100.0
%
 
83.93

 
41,000

 
41,000

 
—

 
—

 
IL Posto LLC, Toro NYC Restaurant, L'Atelier
 
 
49.9
%
 
100.0
%
 
85.36

 
627,000

 
627,000

 
—

 
625,000

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Chelsea/Meatpacking District
 
 

 
 

 
 
 
811,000


811,000

 
—

 
625,000

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Upper West Side:
 
 

 
 

 
 
 
 

 
 

 
 

 
 

 
 
50-70 W 93rd Street
 
 

 
 

 
 
 
 
 
 
 
 
 
 
 
 
-Residential (326 units)
 
49.9
%
 
90.8
%
 
 
 
283,000

 
283,000

 
—

 
80,000

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

- 48 -
https://cdn.kscope.io/54106e6c7fd9e2a9aaf87b53812c6876-vornado1.jpg

NEW YORK SEGMENT
PROPERTY TABLE
 
 
%
Ownership
 
%
Occupancy
 
Weighted
Average
Annual Rest
PSF (1)
 
Square Feet
 
Encumbrances
(non-GAAP)
(in thousands) (2)
 
Major Tenants
Property
 
 
 
 
Total
Property
 
In Service
 
Under Development
or Not Available
for Lease
 
 
NEW YORK (Continued):
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 
Tribeca:
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 
Independence Plaza, Tribeca
 
 

 
 

 
 
 
 
 
 
 
 
 
 
 
 
-Residential (1,327 units)
 
50.1
%
 
95.7
%
 
 

 
1,185,000

 
1,185,000

 
—

 
$
550,000

 
 
-Retail
 
50.1
%
 
100.0
%
 
$
45.99

 
72,000

 
60,000

 
12,000

 
—

 
Duane Reade, Food Emporium
 
 
50.1
%
 
95.9
%
 
 

 
1,257,000

 
1,245,000

 
12,000

 
550,000

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
339 Greenwich Street
 
 

 
 

 
 
 
 
 
 
 
 
 
 
 
 
-Retail
 
100.0
%
 
100.0
%
 
105.34

 
8,000

 
8,000

 
—

 
—

 
Sarabeth's
Total Tribeca
 
 

 
 

 
 

 
1,265,000

 
1,253,000

 
12,000

 
550,000

 
 
New Jersey:
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 
Paramus
 
 

 
 

 
 
 
 
 
 
 
 
 
 
 
 
-Office
 
100.0
%
 
94.7
%
 
21.93

 
129,000

 
129,000

 
—

 
—

 
Vornado's Administrative Headquarters
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Washington D.C.:
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 
3040 M Street
 
 

 
 

 
 
 
 
 
 
 
 
 
 
 
 
-Retail
 
100.0
%
 
100.0
%
 
71.06

 
44,000

 
44,000

 
—

 
—

 
Nike, Amazon*
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Properties to be Developed:
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 
512 West 22nd Street
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 
-Office
 
55.0
%
 
—

 
—

 
173,000

 
—

 
173,000

 
62,359

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
61 Ninth Avenue
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 
(ground leased through 2115)
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 
-Office
 
45.1
%
 
—

 
—

 
147,000

 
—

 
147,000

 
39,526

 
Aetna Life Insurance Company*
-Retail
 
45.1
%
 
—

 
—

 
23,000

 
—

 
23,000

 
—

 
Starbucks*
 
 
45.1
%
 
—

 
—

 
170,000

 
—

 
170,000

 
39,526

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
606 Broadway (19 East Houston Street)
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 
-Office
 
50.0
%
 
—

 
—

 
23,000

 
—

 
23,000

 
—

 
 
-Retail
 
50.0
%
 
—

 
—

 
11,000

 
—

 
11,000

 
34,810

 
 
 
 
50.0
%
 
—

 
—

 
34,000

 
—

 
34,000

 
34,810

 
 
 
 
 

 
 

 
 
 
 
 
 
 
 
 
 
 
 
Moynihan Office Building
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(ground and building leased through 2116)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
-Office
 
50.1
%
 
—

 
—

 
730,000

 
—

 
730,000

 
205,114

 
 
-Retail
 
50.1
%
 
—

 
—

 
120,000

 
—

 
120,000

 
—

 
 
 
 
50.1
%
 
—

 
—

 
850,000

 
—

 
850,000

 
205,114

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Properties to be Developed
 
 
 
 
 
 
 
1,240,000

 
—

 
1,240,000

 
341,809

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
New York Office:
 
 

 
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total
 
 

 
97.2
%
 
$
73.14

 
22,718,000

 
20,242,000

 
2,476,000

 
$
9,789,733

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Vornado's Ownership Interest
 
 

 
97.0
%
 
$
71.00

 
18,201,000

 
16,968,000

 
1,233,000

 
$
5,948,329

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
New York Retail:
 
 

 
 

 
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total
 
 

 
94.7
%
 
$
218.99

 
2,985,000

 
2,709,000

 
276,000

 
$
1,722,950

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Vornado's Ownership Interest
 
 

 
95.7
%
 
$
215.46

 
2,624,000

 
2,473,000

 
151,000

 
$
1,564,195

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
New York Residential:
 
 

 
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total
 
 

 
94.5
%
 
 

 
1,568,000

 
1,568,000

 
—

 
$
630,000

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Vornado's Ownership Interest
 
 

 
94.4
%
 
 

 
835,000

 
835,000

 
—

 
$
315,470

 
 

- 49 -
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NEW YORK SEGMENT
PROPERTY TABLE
 
 
%
Ownership
 
%
Occupancy
 
Weighted
Average
Annual Rest
PSF (1)
 
Square Feet
 
Encumbrances
(non-GAAP)
(in thousands) (2)
 
Major Tenants
Property
 
 
 
 
Total
Property
 
In Service
 
Under Development
or Not Available
for Lease
 
 
NEW YORK (Continued):
 
 

 
 

 
 
 
 
 
 
 
 
 
 
 
 
ALEXANDER'S, INC.:
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 
New York:
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 
731 Lexington Avenue, Manhattan
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 
-Office
 
32.4
%
 
100.0
%
 
$
115.11

 
889,000

 
889,000

 
—

 
$
500,000

 
Bloomberg
-Retail
 
32.4
%
 
99.4
%
 
180.90

 
174,000

 
174,000

 
—

 
350,000

 
Hennes & Mauritz, The Home Depot, The Container Store
 
 
32.4
%
 
99.9
%
 
124.96

 
1,063,000

 
1,063,000

 
—

 
850,000

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
Sears, Burlington Coat Factory,
Rego Park I, Queens (4.8 acres)
 
32.4
%
 
100.0
%
 
40.78

 
343,000

 
343,000

 
—

 
78,246

 
Bed Bath & Beyond, Marshalls
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Rego Park II (adjacent to Rego Park I),
 
 

 
 

 
 
 
 
 
 
 
 
 
 
 
 
Queens (6.6 acres)
 
32.4
%
 
99.9
%
 
44.72

 
609,000

 
609,000

 
—

 
257,147

 
Century 21, Costco, Kohl's, TJ Maxx, Toys "R" Us
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Flushing, Queens (5) (1.0 acre)
 
32.4
%
 
100.0
%
 
17.36

 
167,000

 
167,000

 
—

 
—

 
New World Mall LLC
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
The Alexander Apartment Tower,
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 
Rego Park, Queens, NY
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 
Residential (312 units)
 
32.4
%
 
94.2
%
 
—

 
255,000

 
255,000

 
—

 
—

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
New Jersey:
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 
Paramus, New Jersey
 
 

 
 

 
 
 
 
 
 
 
 
 
 
 
 
(30.3 acres ground leased to IKEA through 2041)
 
32.4
%
 
100.0
%
 
—

 
—

 
—

 
—

 
68,000

 
IKEA (ground lessee)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Property to be Developed:
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 
Rego Park III (adjacent to Rego Park II),
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 
Queens, NY (3.4 acres)
 
32.4
%
 
—

 
—

 
—

 
—

 
—

 
—

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Alexander's
 
32.4
%
 
99.3
%
 
77.29

 
2,437,000

 
2,437,000

 
—

 
1,253,393

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Hotel Pennsylvania:
 
 

 
 

 
 
 
 
 
 
 
 
 
 
 
 
-Hotel (1,700 Keys)
 
100.0
%
 
 

 
 

 
1,400,000

 
1,400,000

 
—

 
—

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total New York
 
 

 
97.1
%
 
$
87.29

 
31,121,000

 
28,356,000

 
2,765,000

 
$
13,396,076

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Vornado's Ownership Interest
 
 

 
96.9
%
 
$
75.05

 
23,857,000

 
22,466,000

 
1,391,000

 
$
8,234,093

 
 
____________________
*    Lease not yet commenced.

(1)
Weighted average annual rent per square foot for office properties excludes garages and diminimous amounts of storage space.  Weighted average annual rent per square foot for retail excludes non-selling space.
(2)
Represents the contractual debt obligations.
(3)
Excludes US Post Office leased through 2038 (including four five-year renewal options) for which the annual escalated rent is $12.31 PSF.
(4)
75,000 square feet is leased from the office condo.
(5)
Leased by Alexander's through January 2037.

- 50 -
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OTHER
PROPERTY TABLE
 
 
%
Ownership
 
%
Occupancy
 
Weighted
Average
Annual Rest
PSF (1)
 
Square Feet
 
Encumbrances
(non-GAAP)
(in thousands) (2)
 
Major Tenants
Property
 
 
 
 
Total
Property
 
In Service
 
Under Development
or Not Available
for Lease
 
 
555 California Street:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
555 California Street
 
70.0
%
 
96.2
%
 
$
71.45

 
1,505,000

 
1,505,000

 
—

 
$
572,533

 
Bank of America, Dodge & Cox, Goldman Sachs & Co.,
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Jones Day, Kirkland & Ellis LLP, Morgan Stanley & Co. Inc.,
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
McKinsey & Company Inc., UBS Financial Services,
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
KKR Financial, Microsoft Corporation,
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fenwick & West LLP
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
315 Montgomery Street
 
70.0
%
 
81.4
%
 
63.17

 
235,000

 
235,000

 
—

 
—

 
Bank of America, Regus, Ripple Labs Inc., LendingHome Corporation*
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
345 Montgomery Street
 
70.0
%
 
—

 
—

 
64,000

 
—

 
64,000

 
—

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total 555 California Street
 
 
 
94.2
%
 
$
70.49

 
1,804,000

 
1,740,000

 
64,000

 
$
572,533

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Vornado's Ownership Interest
 
 
 
94.2
%
 
$
70.49

 
1,263,000

 
1,218,000

 
45,000

 
$
400,773

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
theMART:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
theMART, Chicago
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Motorola Mobility (guaranteed by Google),
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
CCC Information Services, Ogilvy Group (WPP),
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Publicis Groupe (MSL Group, Medicus Group, Razorfish),
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1871, Yelp Inc., Paypal, Inc., Allscripts Healthcare,
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Chicago School of Professional Psychology,
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Innovation Development Institute, Inc., Chicago Teachers Union,
-Office
 
100.0
%
 
99.2
%
 
$
37.07

 
2,010,000

 
2,010,000

 
—

 
 
 
ConAgra Foods Inc., Allstate Insurance Company,
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Steelcase, Baker, Knapp & Tubbs, Holly Hunt Ltd.,
-Showroom/Trade show
 
100.0
%
 
98.5
%
 
46.58

 
1,554,000

 
1,554,000

 
—

 
 
 
Allsteel Inc., Herman Miller Inc., Knoll Inc., Teknion LLC
-Retail
 
100.0
%
 
91.0
%
 
50.26

 
106,000

 
106,000

 
—

 
 
 
 
 
 
100.0
%
 
98.7
%
 
41.41

 
3,670,000

 
3,670,000

 
—

 
$
675,000

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Other (2 properties)
 
50.0
%
 
100.0
%
 
37.82

 
19,000

 
19,000

 
—

 
33,160

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total theMART
 
 
 
98.7
%
 
$
41.39

 
3,689,000

 
3,689,000

 
—

 
$
708,160

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Vornado's Ownership Interest
 
 
 
98.7
%
 
$
41.39

 
3,680,000

 
3,680,000

 
—

 
$
691,850

 
 
____________________
*    Lease not yet commenced.

(1)
Weighted average annual rent per square foot excludes ground rent, storage rent and garages.
(2)
Represents the contractual debt obligations.

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https://cdn.kscope.io/54106e6c7fd9e2a9aaf87b53812c6876-vornado1.jpg

REAL ESTATE FUND
PROPERTY TABLE
 
 
Fund
%
Ownership
 
%
Occupancy
 
Weighted
Average
Annual Rest
PSF (1)
 
Square Feet
 
Encumbrances
(non-GAAP)
(in thousands) (2)
 
Major Tenants
Property
 
 
 
 
Total
Property
 
In Service
 
Under Development
or Not Available
for Lease
 
 
VORNADO CAPITAL PARTNERS
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
     REAL ESTATE FUND:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
New York, NY:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Lucida, 86th Street and Lexington Avenue
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
    (ground leased through 2082)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Barnes & Noble, Hennes & Mauritz,
     - Retail
 
100.0
%
 
99.2
%
 
$
232.46

 
95,000

 
95,000

 
—

 
 
 
Sephora, Bank of America
     - Residential (39 units)
 
100.0
%
 
92.3
%
 
 
 
59,000

 
59,000

 
—

 
 
 
 
 
 
100.0
%
 
 
 
 
 
154,000

 
154,000

 
—

 
$
146,000

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
11 East 68th Street Retail
 
100.0
%
 
100.0
%
 
711.46

 
11,000

 
11,000

 
—

 
60,000

 
Belstaff, Kent & Curwen, Rag & Bone
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Crowne Plaza Times Square
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
     - Hotel (795 Keys)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
     - Retail
 
75.3
%
 
17.0
%
 
141.05

 
46,000

 
46,000

 
—

 
 
 
 
     - Office
 
75.3
%
 
33.0
%
 
44.33

 
194,000

 
194,000

 
—

 
 
 
American Management Association
 
 
75.3
%
 
29.9
%
 
62.87

 
240,000

 
240,000

 
—

 
310,000

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
501 Broadway
 
100.0
%
 
100.0
%
 
262.98

 
9,000

 
9,000

 
—

 
23,000

 
Capital One Financial Corporation
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Miami, FL:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1100 Lincoln Road
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
     - Retail
 
100.0
%
 
74.5
%
 
178.88

 
51,000

 
49,000

 
2,000

 
 
 
Banana Republic
     - Theatre
 
100.0
%
 
100.0
%
 
38.56

 
79,000

 
79,000

 
—

 
 
 
Regal Cinema
 
 
100.0
%
 
90.2
%
 
83.05

 
130,000

 
128,000

 
2,000

 
82,750

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Real Estate Fund
 
89.1
%
 
67.0
%
 
 
 
544,000

 
542,000

 
2,000

 
$
621,750

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Vornado's Ownership Interest
 
28.5
%
 
58.0
%
 
 
 
156,000

 
155,000

 
1,000

 
$
136,295

 
 
____________________
(1)
Weighted average annual rent per square foot excludes ground rent, storage rent, garages and residential.


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OTHER
PROPERTY TABLE
Property
 
%
Ownership
 
%
Occupancy
 
Weighted
Average
Annual Rest
PSF (1)
 
Square Feet
 
Encumbrances
(non-GAAP)
(in thousands) (2)
 
Major Tenants
 
 
 
 
Total
Property
 
In Service
 
Under Development
or Not Available
for Lease
 
 
 
 
 
 
 
Owned by
Company
 
Owned by
Tenant (2) 
 
 
 
ROSSLYN PLAZA:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Virginia (Rosslyn):
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Rosslyn Plaza(4)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
General Services Administration,
Office - 4 buildings
 
46.2
%
 
65.9
%
 
$
43.84

 
736,000

 
437,000

 
—

 
299,000

 
$
38,072

 
Corporate Executive Board, Nathan Associates, Inc.
Residential - 2 buildings (197 units)
 
43.7
%
 
95.9
%
 
 
 
253,000

 
253,000

 
—

 
-

 
-

 
 
 
 
 
 
 
 
 
 
989,000

 
690,000

 
—

 
299,000

 
38,072

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Rosslyn Plaza
 
 
 
65.9
%
 
$
43.84

 
989,000

 
690,000

 
—

 
299,000

 
$
38,072

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Vornado's Ownership Interest
 
 
 
65.9
%
 
$
43.84

 
450,000

 
313,000

 
—

 
138,000

 
$
17,590

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
OTHER:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
New Jersey:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Wayne Town Center, Wayne
 
100.0
%
 
100.0
%
 
$
30.71

 
677,000

 
228,000

 
443,000

 
5,500

 
$
—

 
JCPenney, Costco, Dick's Sporting Goods,
   (ground leased through 2064)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Nordstrom Rack, 24 Hour Fitness
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Maryland:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annapolis
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   (ground and building leased through 2042)
 
100.0
%
 
100.0
%
 
8.99

 
128,000

 
128,000

 
—

 
—

 
—

 
The Home Depot
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Virginia (Pentagon City):
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fashion Centre Mall(4)
 
7.5
%
 
97.2
%
 
49.03

 
868,000

 
868,000

 
—

 
—

 
410,000

 
Macy's, Nordstrom
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Washington Tower(4)
 
7.5
%
 
100.0
%
 
51.06

 
170,000

 
170,000

 
—

 
—

 
40,000

 
Computer Science Corp.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Other
 
 
 
98.7
%
 
$
39.79

 
1,843,000

 
1,394,000

 
443,000

 
5,500

 
$
450,000

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Vornado's Ownership Interest
 
 
 
99.8
%
 
$
29.17

 
883,000

 
434,000

 
443,000

 
6,000

 
$
34,000

 
 
____________________
(1)
Weighted average annual rent per square foot excludes ground rent, storage rent, garages and residential.
(2)
Owned by tenant on land leased from the company.
(3)
Represents the contractual debt obligations.
(4)
Reclassified to Other from the Washington, DC segment.




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NON-GAAP RECONCILIATIONS
RECONCILIATION OF NET (LOSS) INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS TO NET INCOME, AS ADJUSTED
(unaudited and in thousands, except per share amounts)
 
 
Three Months Ended
 
Nine Months Ended September 30,
 
 
September 30,
 
June 30,
2017
 
 
 
2017
 
2016
 
 
2017
 
2016
Net (loss) income attributable to common shareholders
(A)
$
(29,026
)
 
$
66,125

 
$
115,972

 
$
134,698

 
$
172,425

Per diluted share
 
$
(0.15
)
 
$
0.35

 
$
0.61

 
$
0.71

 
$
0.91

 
 
 
 
 
 
 
 
 
 
 
Certain items that impact net (loss) income attributable to common shareholders:
 
 
 
 
 
 
 
 
 
 
JBG SMITH Properties which is treated as a discontinued operation:
 
 
 
 
 
 
 
 
 
 
Transaction costs
 
$
(53,581
)
 
$
(2,739
)
 
$
(6,211
)
 
$
(67,045
)
 
$
(4,597
)
Operating results through July 17, 2017 spin-off
 
3,950

 
29,489

 
23,659

 
47,752

 
66,714

 
 
(49,631
)
 
26,750

 
17,448

 
(19,293
)
 
62,117

 
 
 
 
 
 
 
 
 
 
 
Impairment loss on investment in PREIT
 
(44,465
)
 
—

 
—

 
(44,465
)
 
—

(Loss) income from real estate fund investments, net
 
(7,794
)
 
807

 
(304
)
 
(11,333
)
 
13,662

Net gain resulting from UE operating partnership unit issuances
 
5,200

 
—

 
15,900

 
21,100

 
—

Our share of write-off of deferred financing costs
 
(3,819
)
 
—

 
—

 
(3,819
)
 
—

Preferred share issuance costs (Series J redemption)
 
—

 
(7,408
)
 
—

 
—

 
(7,408
)
Our share of net gain on sale of property of Suffolk Downs JV
 
—

 
—

 
15,314

 
15,314

 
—

Net gain on repayment of Suffolk Downs JV debt investments
 
—

 
—

 
11,373

 
11,373

 
—

Skyline properties impairment loss
 
—

 
—

 
—

 
—

 
(160,700
)
Net gain on sale of 47% ownership interest in 7 West 34th Street
 
—

 
—

 
—

 
—

 
159,511

Other
 
(3,197
)
 
(851
)
 
694

 
(1,024
)
 
(10,699
)
 
 
(103,706
)
 
19,298

 
60,425

 
(32,147
)
 
56,483

Noncontrolling interests' share of above adjustments
 
6,451

 
(1,183
)
 
(3,740
)
 
1,407

 
(3,430
)
Total of certain items that impact net (loss) income attributable to
      common shareholders, net
(B)
$
(97,255
)
 
$
18,115

 
$
56,685

 
$
(30,740
)
 
$
53,053

Per diluted share (non-GAAP)
 
$
(0.51
)
 
$
0.1

 
$
0.3

 
$
(0.16
)
 
$
0.28

 
 
 
 
 
 
 
 
 
 
 
Net income attributable to common shareholders, as adjusted (non-GAAP)
(A-B)
$
68,229

 
$
48,010

 
$
59,287

 
$
165,438

 
$
119,372

Per diluted share (non-GAAP)
 
$
0.36

 
$
0.25

 
$
0.31

 
$
0.87

 
$
0.63



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NON-GAAP RECONCILIATIONS
RECONCILIATION OF NET (LOSS) INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS TO FFO
(unaudited and in thousands, except per share amounts)
 
 
Three Months Ended
 
Nine Months Ended September 30,
 
 
September 30,
 
June 30,
2017
 
 
 
2017
 
2016
 
 
2017
 
2016
Reconciliation of our net (loss) income attributable to common shareholders to FFO
     (non-GAAP):
 
 
 
 
 
 
 
 
 
 
Net (loss) income attributable to common shareholders
(A)
$
(29,026
)
 
$
66,125

 
$
115,972

 
$
134,698

 
$
172,425

Per diluted share
 
$
(0.15
)
 
$
0.35

 
$
0.61

 
$
0.71

 
$
0.91

 
 
 
 
 
 
 
 
 
 
 
FFO adjustments:
 
 
 
 
 
 
 
 
 
 
Depreciation and amortization of real property
 
$
102,953

 
$
130,892

 
$
128,527

 
$
361,949

 
$
398,231

Net gains on sale of real estate
 
(1,530
)
 
—

 
—

 
(3,797
)
 
(161,721
)
Real estate impairment losses
 
—

 
—

 
—

 
—

 
160,700

Proportionate share of adjustments to equity in net (loss) income of partially owned entities to arrive at FFO:
 
 
 
 
 
 
 
 
 
 
Depreciation and amortization of real property
 
31,997

 
40,281

 
37,682

 
108,753

 
117,635

Net gains on sale of real estate
 
8

 
(2,522
)
 
(15,339
)
 
(17,184
)
 
(2,841
)
Real estate impairment losses
 
4,329

 
1,134

 
167

 
7,547

 
5,536

 
 
137,757

 
169,785

 
151,037

 
457,268

 
517,540

Noncontrolling interests' share of above adjustments
 
(8,572
)
 
(10,403
)
 
(9,356
)
 
(28,444
)
 
(31,872
)
FFO adjustments, net
(B)
$
129,185

 
$
159,382

 
$
141,681

 
$
428,824

 
$
485,668

 
 
 
 
 
 
 
 
 
 
 
FFO attributable to common shareholders (non-GAAP)
(A+B)
$
100,159

 
$
225,507

 
$
257,653

 
$
563,522

 
$
658,093

Convertible preferred share dividends
 
19

 
22

 
20

 
59

 
65

Earnings allocated to Out-Performance Plan units
 
—

 
—

 
—

 
850

 
722

FFO attributable to common shareholders plus assumed conversions (non-GAAP)
 
100,178

 
225,529

 
257,673

 
564,431

 
658,880

Add back of income allocated to noncontrolling interests of the Operating Partnership
 
6,776

 
14,937

 
17,062

 
37,229

 
42,906

FFO - OP Basis (non-GAAP)
 
$
106,954

 
$
240,466

 
$
274,735

 
$
601,660

 
$
701,786

FFO per diluted share (non-GAAP)
 
$
0.52

 
$
1.19

 
$
1.35

 
$
2.95

 
$
3.47


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NON-GAAP RECONCILIATIONS
RECONCILIATION OF FFO TO FFO, AS ADJUSTED
(unaudited and in thousands, except per share amounts)
 
 
Three Months Ended
 
Nine Months Ended September 30,
 
 
September 30,
 
June 30,
2017
 
 
 
2017
 
2016
 
 
2017
 
2016
FFO attributable to common shareholders plus assumed conversions (non-GAAP)
(A)
$
100,178

 
$
225,529

 
$
257,673

 
$
564,431

 
$
658,880

Per diluted share (non-GAAP)
 
$
0.52

 
$
1.19

 
$
1.35

 
$
2.95

 
$
3.47

 
 
 
 
 
 
 
 
 
 
 
Certain items that impact FFO:
 
 
 
 
 
 
 
 
 
 
JBG SMITH Properties which is treated as a discontinued operation:
 
 
 
 
 
 
 
 
 
 
Transaction costs
 
$
(53,581
)
 
$
(2,739
)
 
$
(6,211
)
 
$
(67,045
)
 
$
(4,597
)
Operating results through July 17, 2017 spin-off
 
10,148

 
61,699

 
56,868

 
122,201

 
169,141

 
 
(43,433
)
 
58,960

 
50,657

 
55,156

 
164,544

 
 
 
 
 
 
 
 
 
 
 
Impairment loss on investment in PREIT
 
(44,465
)
 
—

 
—

 
(44,465
)
 
—

(Loss) income from real estate fund investments, net
 
(7,794
)
 
807

 
(304
)
 
(11,333
)
 
13,662

Net gain resulting from UE Properties operating partnership unit issuances
 
5,200

 
—

 
15,900

 
21,100

 
—

Our share of write-off of deferred financing costs
 
(3,819
)
 
—

 
—

 
(3,819
)
 
—

Preferred share issuance costs (Series J redemption)
 
—

 
(7,408
)
 
—

 
—

 
(7,408
)
Net gain on repayment of our Suffolk Downs JV debt instruments
 
—

 
—

 
11,373

 
11,373

 
—

Other
 
(390
)
 
171

 
836

 
856

 
(130
)
 
 
(94,701
)
 
52,530

 
78,462

 
28,868

 
170,668

Noncontrolling interests' share of above adjustments
 
5,890

 
(3,220
)
 
(4,857
)
 
(1,782
)
 
(10,877
)
Total of certain items that impact FFO, net
(B)
(88,811
)
 
49,310

 
73,605

 
27,086

 
159,791

Per diluted share
 
$
(0.47
)
 
$
0.26

 
$
0.39

 
$
0.14

 
$
0.84

 
 
 
 
 
 
 
 
 
 
 
FFO, as adjusted (non-GAAP)
(A-B)
$
188,989

 
$
176,219

 
$
184,068

 
$
537,345

 
$
499,089

Per diluted share (non-GAAP)
 
$
0.99

 
$
0.93

 
$
0.97

 
$
2.81

 
$
2.63




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NON-GAAP RECONCILIATIONS
RECONCILIATION OF FFO TO FAD
(unaudited and in thousands, except per share amounts)
 
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended
 
Nine Months Ended September 30,
 
 
September 30,
 
June 30,
2017
 
 
 
2017
 
2016
 
 
2017
 
2016
FFO attributable to common shareholders plus assumed conversions (non-GAAP)
(A)
$
100,178

 
$
225,529

 
$
257,673

 
$
564,431

 
$
658,880

 
 
 
 
 
 
 
 
 
 
 
Adjustments to arrive at FAD (non-GAAP):
 
 
 
 
 
 
 
 
 
 
Adjustments to FFO per page 56, excluding FFO from discontinued operations and sold properties
 
(105,020
)
 
(12,541
)
 
20,931

 
(94,328
)
 
(8,194
)
Recurring tenant improvements, leasing commissions and other capital expenditures
 
64,520

 
87,090

 
77,350

 
214,361

 
262,719

Carried interest and our share of net unrealized (loss) gain from real estate fund investments
 
(12,908
)
 
(97
)
 
(2,300
)
 
(21,375
)
 
8,639

Amortization of acquired below-market leases, net
 
10,660

 
11,410

 
12,474

 
34,135

 
40,302

Straight-lining of rents
 
9,170

 
34,915

 
13,059

 
37,751

 
118,960

Amortization of debt issuance costs
 
(6,220
)
 
(8,539
)
 
(8,353
)
 
(23,554
)
 
(26,312
)
Stock-based compensation expense
 
(5,693
)
 
(6,117
)
 
(7,350
)
 
(27,319
)
 
(27,903
)
Non real estate depreciation
 
(1,671
)
 
(1,447
)
 
(2,039
)
 
(5,704
)
 
(5,277
)
Noncontrolling interests' share of above adjustments
 
3,216

 
(6,417
)
 
(6,423
)
 
(6,758
)
 
(22,521
)
 
(B)
(43,946
)
 
98,257

 
97,349

 
107,209

 
340,413

 
 
 
 
 
 
 
 
 
 
 
FAD (non-GAAP)
(A-B)
$
144,124


$
127,272


$
160,324


$
457,222


$
318,467

 
 
 
 
 
 
 
 
 
 
 
FAD payout ratio (1)
 
80.0
%
 
94.0
%
 
84.5
%
 
84.5
%
 
112.5
%
_____________________________________________
(1)
FAD payout ratios on a quarterly basis are not necessarily indicative of amounts for the full year due to fluctuation in timing of cash based expenditures, the commencement of new leases and the seasonality of our operations.


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NON-GAAP RECONCILIATIONS
RECONCILIATION OF EBITDA TO EBITDA, AS ADJUSTED
(unaudited and in thousands)
 
 
 
 
 
 
 
 
Three Months Ended September 30, 2017
 
 
Total
 
New York
 
Other
EBITDA (non-GAAP) per page 14
(A)
$
236,745

 
$
297,177

 
$
(60,432
)
Certain items that impact EBITDA:
 
 
 
 
 
 
JBG SMITH Properties which is treated as a discontinued operation:
 
 
 
 
 
 
Transaction costs
 
(53,581
)
 
—

 
(53,581
)
Operating results through July 17, 2017 spin-off
 
13,038

 
—

 
13,038

 
 
(40,543
)
 
—

 
(40,543
)
 
 
 
 
 
 
 
Impairment loss on investment in PREIT
 
(44,465
)
 
—

 
(44,465
)
Loss from real estate fund investments, net
 
(7,794
)
 
—

 
(7,794
)
Net gain result from UE operating partnership unit issuance
 
5,200

 
—

 
5,200

Other
 
(3,197
)
 
—

 
(3,197
)
Total of certain items that impact EBITDA
(B)
(90,799
)
 
—

 
(90,799
)
EBITDA, as adjusted (non-GAAP)
(A-B)
$
327,544


$
297,177


$
30,367

 
 
Three Months Ended September 30, 2016
 
 
Total
 
New York
 
Other
EBITDA (non-GAAP) per page 14
(A)
$
398,007

 
$
276,893

 
$
121,114

Certain items that impact EBITDA:
 
 
 
 
 
 
JBG SMITH Properties which is treated as a discontinued operation:
 
 
 
 
 
 
Operating results
 
75,307

 
—

 
75,307

Transaction costs
 
(2,739
)
 
—

 
(2,739
)
 
 
72,568

 
—

 
72,568

 
 
 
 
 
 
 
Income from real estate fund investments, net
 
807

 
—

 
807

Other
 
8,898

 
—

 
8,898

Total of certain items that impact EBITDA
(B)
82,273

 
—

 
82,273

EBITDA, as adjusted (non-GAAP)
(A-B)
$
315,734


$
276,893


$
38,841


- 58 -
https://cdn.kscope.io/54106e6c7fd9e2a9aaf87b53812c6876-vornado1.jpg

NON-GAAP RECONCILIATIONS
RECONCILIATION OF EBITDA TO EBITDA, AS ADJUSTED
(unaudited and in thousands)
 
 
 
 
 
 
 
 
Nine Months Ended September 30, 2017
 
 
Total
 
New York
 
Other
EBITDA (non-GAAP) per page 16
(A)
$
1,021,077

 
$
853,922

 
$
167,155

Certain items that impact EBITDA:
 
 
 
 
 
 
JBG SMITH Properties which is treated as a discontinued operation:
 
 
 
 
 
 
Operating results through July 17, 2017 spin-off
 
153,449

 
—

 
153,449

Transaction costs
 
(67,045
)
 
—

 
(67,045
)
 
 
86,404

 
—

 
86,404

 
 
 
 
 
 
 
Impairment loss on investment in PREIT
 
(44,465
)
 
—

 
(44,465
)
Net gain result from UE operating partnership unit issuance
 
21,100

 
—

 
21,100

Our share of net gain on sale of property of Suffolk Downs JV
 
15,314

 
—

 
15,314

Net gain on sale of repayment of Suffolk Downs JV debt investments
 
11,373

 
—

 
11,373

Loss from real estate fund investments, net
 
(11,333
)
 
—

 
(11,333
)
Other
 
(1,024
)
 
—

 
(1,024
)
Total of certain items that impact EBITDA
(B)
77,369


—


77,369

EBITDA, as adjusted (non-GAAP)
(A-B)
$
943,708


$
853,922


$
89,786

 
 
Nine Months Ended September 30, 2016
 
 
Total
 
New York
 
Other
EBITDA (non-GAAP) per page 16
(A)
$
1,162,125

 
$
977,517

 
$
184,608

Certain items that impact EBITDA:
 
 
 
 
 
 
JBG SMITH Properties which is treated as a discontinued operation:
 
 
 
 
 
 
Operating results
 
214,604

 
—

 
214,604

Transaction costs
 
(4,597
)
 
—

 
(4,597
)
 
 
210,007

 
—

 
210,007

 
 
 
 
 
 
 
Skyline properties impairment loss
 
(160,700
)
 
—

 
(160,700
)
Net gain on sale of 47% ownership interest in 7 West 34th Street
 
159,511

 
159,511

 
—

Income from real estate fund investments, net
 
13,662

 
—

 
13,662

Other
 
18,888

 
3,120

 
15,768

Total of certain items that impact EBITDA
(B)
241,368


162,631


78,737

EBITDA, as adjusted (non-GAAP)
(A-B)
$
920,757


$
814,886


$
105,871



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https://cdn.kscope.io/54106e6c7fd9e2a9aaf87b53812c6876-vornado1.jpg

NON-GAAP RECONCILIATIONS
RECONCILIATION OF NOI TO NOI, AS ADJUSTED
(unaudited and in thousands)
 
 
Three Months Ended September 30, 2017
 
 
Total
 
New York
 
Other
NOI (non-GAAP) per page 14
(A)
$
346,241

 
$
280,044

 
$
66,197

Certain items that impact NOI:
 
 
 
 
 
 
JBG SMITH Properties spin-off operating results through July 17, 2017 spin-off
 
12,971

 
—

 
12,971

NOI from real estate fund investments, net
 
2,600

 
—

 
2,600

Other
 
692

 
—

 
692

Total of certain items that impact NOI
(B)
16,263


—


16,263

NOI, as adjusted (non-GAAP)
(A-B)
$
329,978


$
280,044


$
49,934


 
 
Three Months Ended September 30, 2016
 
 
Total
 
New York
 
Other
NOI (non-GAAP) per page 14
(A)
$
383,877

 
$
246,588

 
$
137,289

Certain items that impact NOI:
 
 
 
 
 
 
JBG SMITH Properties operating results
 
72,919

 
—

 
72,919

NOI from real estate fund investments, net
 
2,555

 
—

 
2,555

Other
 
1,906

 
—

 
1,906

Total of certain items that impact NOI
(B)
77,380


—


77,380

NOI, as adjusted (non-GAAP)
(A-B)
$
306,497


$
246,588


$
59,909


- 60 -
https://cdn.kscope.io/54106e6c7fd9e2a9aaf87b53812c6876-vornado1.jpg

NON-GAAP RECONCILIATIONS
RECONCILIATION OF NOI TO NOI, AS ADJUSTED
(unaudited and in thousands)
 
 
Nine Months Ended September 30, 2017
 
 
Total
 
New York
 
Other
NOI (non-GAAP) per page 16
(A)
$
1,132,442

 
$
812,334

 
$
320,108

Certain items that impact NOI:
 
 
 
 
 
 
JBG SMITH Properties operating results through July 17, 2017 spin-off
 
160,634

 
—

 
160,634

NOI from real estate fund investments, net
 
7,469

 
—

 
7,469

Other
 
4,282

 
—

 
4,282

Total of certain items that impact NOI
(B)
172,385

 
—

 
172,385

NOI, as adjusted (non-GAAP)
(A-B)
$
960,057

 
$
812,334

 
$
147,723

 
 
 
Nine Months Ended September 30, 2016
 
 
Total
 
New York
 
Other
NOI (non-GAAP) per page 16
(A)
$
1,119,555

 
$
716,315

 
$
403,240

Certain items that impact NOI:
 
 
 
 
 
 
JBG SMITH Properties operating results
 
233,310

 
—

 
233,310

NOI from real estate fund investments, net
 
6,313

 
—

 
6,313

Other
 
7,126

 
2,232

 
4,894

Total of certain items that impact NOI
(B)
246,749


2,232


244,517

NOI, as adjusted (non-GAAP)
(A-B)
$
872,806


$
714,083


$
158,723



- 61 -
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NON-GAAP RECONCILIATIONS
RECONCILIATION OF EBITDA TO SAME STORE EBITDA
(unaudited and in thousands)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
New York
 
theMART
 
555 California Street
EBITDA (non-GAAP) for the three months ended September 30, 2017
 
$
297,177

 
$
24,165

 
$
11,643

Add-back:
 
 
 
 
 
 
Non-property level overhead expenses included above
 
9,479

 
1,859

 
—

Less EBITDA from:
 
 
 
 
 
 
Acquisitions
 
(5,454
)
 
42

 
—

Dispositions
 
(15
)
 
—

 
—

Development properties placed into and out of service
 
(6,228
)
 
—

 
—

Other non-operating income, net
 
(1,076
)
 
—

 
—

Same store EBITDA (non-GAAP) for the three months ended September 30, 2017
 
$
293,883

 
$
26,066

 
$
11,643

 
 
 
 
 
 
 
EBITDA (non-GAAP) for the three months ended September 30, 2016
 
$
276,893

 
$
21,696

 
$
11,405

Add-back:
 
 
 
 
 
 
Non-property level overhead expenses included above
 
9,783

 
1,720

 
55

Less EBITDA from:
 
 
 
 
 
 
Acquisitions
 
(205
)
 
—

 
—

Dispositions
 
19

 
—

 
—

Development properties placed into and out of service
 
(7,967
)
 
—

 
226

Other non-operating loss (income), net
 
1,285

 
—

 
(239
)
Same store EBITDA (non-GAAP) for the three months ended September 30, 2016
 
$
279,808

 
$
23,416

 
$
11,447

 
 
 
 
 
 
 
Increase in same store EBITDA for the three months ended September 30, 2017 compared to September 30, 2016
 
$
14,075


$
2,650


$
196

 
 
 
 
 
 
 
% increase in same store EBITDA
 
5.0
%
 
11.3
%
 
1.7
%

- 62 -
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NON-GAAP RECONCILIATIONS
 
 
 
 
 
 
RECONCILIATION OF EBITDA TO SAME STORE EBITDA
 
 
 
 
 
 
(unaudited and in thousands)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
New York
 
theMART
 
555 California Street
EBITDA (non-GAAP) for the nine months ended September 30, 2017
 
$
853,922

 
$
72,471

 
$
35,870

Add-back:
 
 
 
 
 
 
Non-property level overhead expenses included above
 
31,630

 
5,632

 
—

Less EBITDA from:
 
 
 
 
 
 
Acquisitions
 
(15,211
)
 
210

 
—

Dispositions
 
(619
)
 
—

 
—

Development properties placed into and out of service
 
(18,966
)
 
—

 
—

Other non-operating income, net
 
(3,963
)
 
(19
)
 
—

Same store EBITDA (non-GAAP) for the nine months ended September 30, 2017
 
$
846,793

 
$
78,294

 
$
35,870

 
 
 
 
 
 
 
EBITDA (non-GAAP) for the nine months ended September 30, 2016
 
$
977,517

 
$
70,689

 
$
35,137

Add-back:
 
 
 
 
 
 
Non-property level overhead expenses included above
 
27,557

 
5,064

 
244

Less EBITDA from:
 
 
 
 
 
 
Acquisitions
 
(60
)
 
—

 
—

Dispositions, including net gains on sale
 
(162,512
)
 
—

 
—

Development properties placed into and out of service
 
(24,343
)
 
—

 
782

Other non-operating loss (income), net
 
6,424

 
—

 
(238
)
Same store EBITDA (non-GAAP) for the nine months ended September 30, 2016
 
$
824,583

 
$
75,753

 
$
35,925

 
 
 
 
 
 
 
Increase (decrease) in same store EBITDA for the nine months ended September 30, 2017 compared to September 30, 2016
 
$
22,210


$
2,541


$
(55
)
 
 
 
 
 
 
 
% increase (decrease) in same store EBITDA
 
2.7
%
 
3.4
%
 
(0.2
)%

- 63 -
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NON-GAAP RECONCILIATIONS
RECONCILIATION OF EBITDA TO SAME STORE EBITDA
(unaudited and in thousands)
 
 
 
 
 
 
 
 
 
New York
 
theMART
 
555 California Street
EBITDA (non-GAAP) for the three months ended September 30, 2017
 
$
297,177

 
$
24,165

 
$
11,643

Add-back:
 
 
 
 
 
 
Non-property level overhead expenses included above
 
9,479

 
1,859

 
—

Less EBITDA from:
 
 
 
 
 
 
Acquisitions
 
(226
)
 
42

 
—

Dispositions
 
(15
)
 
—

 
—

Development properties placed into and out of service
 
(6,228
)
 
—

 
—

Other non-operating income, net
 
(1,308
)
 
—

 
—

Same store EBITDA (non-GAAP) for the three months ended September 30, 2017
 
$
298,879

 
$
26,066

 
$
11,643

 
 
 
 
 
 
 
EBITDA (non-GAAP) for the three months ended June 30, 2017
 
$
283,962

 
$
24,122

 
$
12,144

Add-back:
 
 
 
 
 
 
Non-property level overhead expenses included above
 
9,908

 
2,063

 
—

Less EBITDA from:
 
 
 
 
 
 
Acquisitions
 
(164
)
 
169

 
—

Dispositions
 
(164
)
 
—

 
—

Development properties placed into and out of service
 
(7,571
)
 
—

 
—

Other non-operating income, net
 
(900
)
 
—

 
—

Same store EBITDA (non-GAAP) for the three months ended June 30, 2017
 
$
285,071

 
$
26,354

 
$
12,144

 
 
 
 
 
 
 
Increase (decrease) in same store EBITDA for the three months ended September 30, 2017 compared to June 30, 2017
 
$
13,808


$
(288
)

$
(501
)
 
 
 
 
 
 
 
% increase (decrease) in cash basis same store EBITDA
 
4.8
%
 
(1.1
)%
 
(4.1
)%



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NON-GAAP RECONCILIATIONS
RECONCILIATION OF NOI TO SAME STORE NOI
(unaudited and in thousands)
 
 
 
 
 
 
 
 
 
New York
 
theMART
 
555 California Street
NOI (non-GAAP) for the three months ended September 30, 2017
 
$
280,044

 
$
25,422

 
$
11,013

Less NOI from:
 
 
 
 
 
 
Acquisitions
 
(3,682
)
 
42

 
—

Dispositions
 
(15
)
 
—

 
—

Development properties placed into and out of service
 
(1,779
)
 
—

 
—

Other non-operating income, net
 
(6,022
)
 
—

 
—

Same store NOI (non-GAAP) for the three months ended September 30, 2017
 
$
268,546


$
25,464


$
11,013

 
 
 
 
 
 
 
NOI (non-GAAP) for the three months ended September 30, 2016
 
$
246,588

 
$
21,758

 
$
9,899

Less NOI from:
 
 
 
 
 
 
Dispositions
 
19

 
—

 
—

Development properties placed into and out of service
 
(1,950
)
 
—

 
226

Other non-operating income, net
 
(8,769
)
 
—

 
(397
)
Same store NOI (non-GAAP) for the three months ended September 30, 2016
 
$
235,888


$
21,758


$
9,728

 
 
 
 
 
 
 
Increase in same store NOI for the three months ended September 30, 2017 compared to September 30, 2016
 
$
32,658


$
3,706


$
1,285

 
 
 
 
 
 
 
% increase in same store NOI
 
13.8
%
 
17.0
%
 
13.2
%

- 65 -
https://cdn.kscope.io/54106e6c7fd9e2a9aaf87b53812c6876-vornado1.jpg

NON-GAAP RECONCILIATIONS
RECONCILIATION OF NOI TO SAME STORE NOI
(unaudited and in thousands)
 
 
 
 
 
 
 
 
 
New York
 
theMART
 
555 California Street
NOI (non-GAAP) for the nine months ended September 30, 2017
 
$
812,334

 
$
74,859

 
$
33,647

Less NOI from:
 
 
 
 
 
 
Acquisitions
 
(13,230
)
 
210

 
—

Dispositions
 
(619
)
 
—

 
—

Development properties placed into and out of service
 
(5,022
)
 
—

 
—

Other non-operating income, net
 
(22,492
)
 
(31
)
 
—

Same store NOI (non-GAAP) for the nine months ended September 30, 2017
 
$
770,971

 
$
75,038

 
$
33,647

 
 
 
 
 
 
 
NOI (non-GAAP) for the nine months ended September 30, 2016
 
$
716,315

 
$
70,914

 
$
24,010

Less NOI from:
 
 
 
 
 
 
Acquisitions
 
(13
)
 
—

 
—

Dispositions
 
(2,113
)
 
—

 
—

Development properties placed into and out of service
 
(5,947
)
 
—

 
782

Other non-operating income, net
 
(27,428
)
 
—

 
(396
)
Same store NOI (non-GAAP) for the nine months ended September 30, 2016
 
$
680,814

 
$
70,914

 
$
24,396

 
 
 
 
 
 
 
Increase in same store NOI for the nine months ended September 30, 2017 compared to September 30, 2016
 
$
90,157


$
4,124


$
9,251

 
 
 
 
 
 
 
% increase in same store NOI
 
13.2
%
 
5.8
%
 
37.9
%

- 66 -
https://cdn.kscope.io/54106e6c7fd9e2a9aaf87b53812c6876-vornado1.jpg

NON-GAAP RECONCILIATIONS
RECONCILIATION OF NOI TO SAME STORE NOI
(unaudited and in thousands)
 
 
 
 
 
 
 
 
 
New York
 
theMART
 
555 California Street
NOI (non-GAAP) for the three months ended September 30, 2017
 
$
280,044

 
$
25,422

 
$
11,013

Less NOI from:
 
 
 
 
 
 
Acquisitions
 
(76
)
 
42

 
—

Dispositions
 
(15
)
 
—

 
—

Development properties placed into and out of service
 
(1,779
)
 
—

 
—

Other non-operating income, net
 
(6,247
)
 
—

 
—

Same store NOI (non-GAAP) for the three months ended September 30, 2017
 
$
271,927

 
$
25,464

 
$
11,013

 
 
 
 
 
 
 
NOI (non-GAAP) for the three months ended June 30, 2017
 
$
270,515

 
$
24,901

 
$
11,259

Less NOI from:
 
 
 
 
 
 
Acquisitions
 
(63
)
 
170

 
—

Dispositions
 
(164
)
 
—

 
—

Development properties placed into and out of service
 
(1,774
)
 
—

 
—

Other non-operating income, net
 
(6,773
)
 
—

 
—

Same store NOI (non-GAAP) for the three months ended June 30, 2017
 
$
261,741

 
$
25,071

 
$
11,259

 
 
 
 
 
 
 
Increase (decrease) in same store NOI for the three months ended September 30, 2017 compared to June 30, 2017
 
$
10,186


$
393


$
(246
)
 
 
 
 
 
 
 
% increase (decrease) in same store NOI
 
3.9
%
 
1.6
%
 
(2.2
)%



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NON-GAAP RECONCILIATIONS
RECONCILIATION OF TRAILING TWELVE MONTHS NET INCOME TO EBITDA, AS ADJUSTED
(unaudited and in thousands)
 
 
 
 
 
 
 
 
 
 
 
 
 
Trailing Twelve Months Ended September 30, 2017
 
 
 
New York
 
 
 
 
 
Total
 
Office
 
Retail
 
Residential
 
theMART
 
555 California
Street
Net income
$
402,549

 
$
170,615

 
$
194,306

 
$
2,417

 
$
32,159

 
$
3,052

Interest and debt expense
340,640

 
216,476

 
73,398

 
11,926

 
19,382

 
19,458

Depreciation and amortization
478,363

 
308,454

 
95,129

 
10,266

 
40,670

 
23,844

Income tax expense
3,570

 
1,682

 
266

 
—

 
1,416

 
206

EBITDA (non-GAAP)
1,225,122

 
697,227

 
363,099

 
24,609

 
93,627

 
46,560

Certain items that impact EBITDA
—

 
—

 
—

 
—

 
—

 
—

EBITDA, as adjusted (non-GAAP)
$
1,225,122

 
$
697,227

 
$
363,099

 
$
24,609

 
$
93,627

 
$
46,560

RECONCILIATION OF CONSOLIDATED REVENUES TO OUR PRO RATA SHARE OF TOTAL ANNUALIZED REVENUES
(unaudited and in thousands)
 
 
 
 
Three Months Ended September 30, 2017
 
Consolidated revenues
$
528,755

 
Noncontrolling interest adjustments
(24,847
)
 
Consolidated revenues at our share (non-GAAP)
503,908

 
Unconsolidated revenues at our share, excluding Toys "R" Us, Inc.
154,416

 
Our pro rata share of revenues (non-GAAP)
$
658,324

 
Our pro rata share of revenues (annualized) (non-GAAP)
$
2,633,296

 
RECONCILIATION OF CONSOLIDATED DEBT, NET (GAAP) TO CONTRACTUAL DEBT (NON-GAAP)
(unaudited and in thousands)
 
 
 
 
 
 
 
 
 
 
 
 
September 30, 2017
 
 
 
 
 
 
Consolidated
Debt, net
 
Deferred Financing
Costs, Net and Other
 
Contractual
Debt (non-GAAP)
 
 
 
 
 
Mortgages payable
$
8,131,606

 
$
73,157

 
$
8,204,763

 
 
 
 
 
Senior unsecured notes
846,641

 
3,359

 
850,000

 
 
 
 
 
$750 Million unsecured term loan
373,354

 
1,646

 
375,000

 
 
 
 
 
 
$
9,351,601

 
$
78,162

 
$
9,429,763


 

 


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