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Income Per Share / Income Per Class A Unit

Income Per Share/Income Per Class A Unit

Vornado Realty Trust

The following table provides a reconciliation of both net income and the number of common shares used in the computation of (i) basic income per common share - which includes the weighted average number of common shares outstanding without regard to dilutive potential common shares, and (ii) diluted income per common share - which includes the weighted average common shares and dilutive share equivalents. Dilutive share equivalents may include our Series A convertible preferred shares, employee stock options, restricted stock awards and Out-Performance Plan awards.



(Amounts in thousands, except per share amounts)	Year Ended December 31,
	2017			2016			2015
Numerator:
Income from continuing operations, net of income attributable to noncontrolling interests	$	239,824		$	526,686		$	550,240
(Loss) income from discontinued operations, net of income attributable to noncontrolling interest	(12,408		)	380,231			210,194
Net income attributable to Vornado	227,416			906,917			760,434
Preferred share dividends	(65,399		)	(75,903		)	(80,578		)
Preferred share issuance costs (Series J redemption)	—			(7,408		)	—
Net income attributable to common shareholders	162,017			823,606			679,856
Earnings allocated to unvested participating securities	(46		)	(96		)	(81		)
Numerator for basic income per share	161,971			823,510			679,775
Impact of assumed conversions:
Earnings allocated to Out-Performance Plan units	230			806			—
Convertible preferred share dividends	—			86			91
Numerator for diluted income per share	$	162,201		$	824,402		$	679,866

Denominator:
Denominator for basic income per share – weighted average shares	189,526			188,837			188,353
Effect of dilutive securities ⁽¹⁾:
Employee stock options and restricted share awards	1,448			1,064			1,166
Out-Performance Plan units	284			230			—
Convertible preferred shares	—			42			45
Denominator for diluted income per share – weighted average shares and assumed conversations	191,258			190,173			189,564

INCOME PER COMMON SHARE – BASIC:
Income from continuing operations, net	$	0.92		$	2.35		$	2.49
(Loss) income from discontinued operations, net	(0.07		)	2.01			1.12
Net income per common share	$	0.85		$	4.36		$	3.61

INCOME PER COMMON SHARE – DILUTED:
Income from continuing operations, net	$	0.91		$	2.34		$	2.48
(Loss) income from discontinued operations, net	(0.06		)	2.00			1.11
Net income per common share	$	0.85		$	4.34		$	3.59

________________________________________


(1)	The effect of dilutive securities in the years ended December 31, 2017, 2016 and 2015 excludes an aggregate of 12,165, 12,022 and 11,744 weighted average common share equivalents, respectively, as their effect was anti-dilutive.

Income Per Share / Income Per Class A Unit

Vornado Realty L.P.

The following table provides a reconciliation of both net income and the number of Class A units used in the computation of (i) basic income per Class A unit - which includes the weighted average number of Class A units outstanding without regard to dilutive potential Class A units, and (ii) diluted income per Class A unit - which includes the weighted average Class A units and dilutive unit equivalents. Dilutive unit equivalents may include our Series A convertible preferred units, Vornado stock options, restricted unit awards and Out-Performance Plan awards.



(Amounts in thousands, except per unit amounts)	Year Ended December 31,
	2017			2016			2015
Numerator:
Income from continuing operations, net of income attributable to noncontrolling interests	$	251,554		$	555,659		$	580,154
(Loss) income from discontinued operations	(13,228		)	404,912			223,511
Net income attributable to Vornado Realty L.P.	238,326			960,571			803,665
Preferred unit distributions	(65,593		)	(76,097		)	(80,736		)
Preferred unit issuance costs (Series J redemption)	—			(7,408		)	—
Net income attributable to Class A unitholders	172,733			877,066			722,929
Earnings allocated to unvested participating securities	(3,232		)	(4,177		)	(4,092		)
Numerator for basic income per Class A unit	169,501			872,889			718,837
Impact of assumed conversions:
Convertible preferred unit distributions	—			86			92
Numerator for diluted income per Class A unit	$	169,501		$	872,975		$	718,929

Denominator:
Denominator for basic income per Class A unit – weighted average units	201,214			200,350			199,309
Effect of dilutive securities ⁽¹⁾:
Vornado stock options and restricted unit awards	2,086			1,625			1,804
Convertible preferred units	—			42			45
Denominator for diluted income per Class A unit – weighted average units and assumed conversations	203,300			202,017			201,158

INCOME PER CLASS A UNIT – BASIC:
Income from continuing operations, net	$	0.91		$	2.34		$	2.49
(Loss) income from discontinued operations, net	(0.07		)	2.02			1.12
Net income per Class A unit	0.84			4.36			3.61

INCOME PER CLASS A UNIT – DILUTED:
Income from continuing operations, net	$	0.90		$	2.32		$	2.46
(Loss) income from discontinued operations, net	(0.07		)	2.00			1.11
Net income per Class A unit	$	0.83		$	4.32		$	3.57

________________________________________


(1)	The effect of dilutive securities in the years ended December 31, 2017, 2016 and 2015 excludes an aggregate of 124, 178 and 150 weighted average Class A unit equivalents, respectively, as their effect was anti-dilutive.

Leases

12 Months Ended

Dec. 31, 2017

Leases [Abstract]

Leases

As lessor:

We lease space to tenants under operating leases. Most of the leases provide for the payment of fixed base rentals payable monthly in advance. Office building leases generally require the tenants to reimburse us for operating costs and real estate taxes above their base year costs. Certain leases provide for pass-through to tenants for the tenant’s share of real estate taxes, insurance and maintenance. Certain leases also provide for the payment by the lessee of additional rent based on a percentage of the tenants’ sales. As of December 31, 2017, future base rental revenue under non-cancelable operating leases, excluding rents for leases with an original term of less than one year and rents resulting from the exercise of renewal options, are as follows:



(Amounts in thousands)
Year Ending December 31:
2018	$	1,469,201
2019	1,441,139
2020	1,369,636
2021	1,298,798
2022	1,230,172
Thereafter	5,841,213

These amounts do not include percentage rentals based on tenants’ sales. These percentage rents approximated $4,062,000, $3,590,000 and $1,575,000, for the years ended December 31, 2017, 2016 and 2015, respectively.

None of our tenants accounted for more than 10% of total revenues in any of the years ended December 31, 2017, 2016 and 2015.

As lessee:

We are a tenant under operating leases for certain properties. These leases have terms that expire during the next thirty years. Future minimum lease payments under operating leases at December 31, 2017 are as follows:



(Amounts in thousands)
Year Ending December 31:
2018	$	33,703
2019	34,301
2020	34,779
2021	35,295
2022	36,319
Thereafter	1,113,171

Rent expense, a component of “operating" expenses on our consolidated statements of income, was $40,219,000, $40,170,000 and $37,575,000 for the years ended December 31, 2017, 2016 and 2015, respectively.


18.	Leases – continued

1535 Broadway

We are a lessee under a long-term capital lease for the retail and signage components of the Marriott Marquis Times Square Hotel at 1535 Broadway. At inception of the lease in 2012, we recorded a $240,000,000 capital lease asset and liability on our consolidated balance sheet based on the present value of future minimum lease payments. The capital lease asset is being depreciated on a straight-line basis over the estimated life of the asset and the related expense is included in “depreciation and amortization” on our consolidated statements of income. During 2017, we substantially completed the redevelopment of the leased space, as required under the lease, at a total redevelopment cost of approximately $197,209,000. The lease contains a put/call purchase option under which the lessor may exercise its “put” on predetermined dates after March 31, 2018 and we may exercise our “call” at any time after July 30, 2027 and before January 3, 2032.

As of December 31, 2017, future minimum lease payments under this capital lease are as follows:



(Amounts in thousands)
Year Ending December 31:
2018	$	13,508
2019	12,508
2020	12,508
2021	12,508
2022	12,508
Thereafter	297,330
Total minimum obligations	360,870
Interest portion	(120,870		)
Present value of net minimum payments	$	240,000

As of December 31, 2017, the gross carrying amount of the property leased under the capital lease was $436,984,000, which is a component of “buildings and improvements” on our consolidated balance sheets.

Multiemployer Benefit Plans	12 Months Ended
Multiemployer Benefit Plans	Dec. 31, 2017
Multiemployer Plans [Abstract]
Multiemployer Benefit Plans	Multiemployer Benefit Plans Our subsidiaries make contributions to certain multiemployer defined benefit plans (“Multiemployer Pension Plans”) and health plans (“Multiemployer Health Plans”) for our union represented employees, pursuant to the respective collective bargaining agreements. Multiemployer Pension Plans Multiemployer Pension Plans differ from single-employer pension plans in that (i) contributions to multiemployer plans may be used to provide benefits to employees of other participating employers and (ii) if other participating employers fail to make their contributions, each of our participating subsidiaries may be required to bear its then pro rata share of unfunded obligations. If a participating subsidiary withdraws from a plan in which it participates, it may be subject to a withdrawal liability. As of December 31, 2017, our subsidiaries’ participation in these plans was not significant to our consolidated financial statements. In the years ended December 31, 2017, 2016 and 2015, our subsidiaries contributed $10,113,000, $9,479,000 and $10,878,000, respectively, towards Multiemployer Pension Plans, which is included as a component of “operating” expenses on our consolidated statements of income. Our subsidiaries’ contributions did not represent more than 5% of total employer contributions in any of these plans for the years ended December 31, 2017, 2016 and 2015. Multiemployer Health Plans Multiemployer Health Plans in which our subsidiaries participate provide health benefits to eligible active and retired employees. In the years ended December 31, 2017, 2016 and 2015, our subsidiaries contributed $29,549,000, $32,998,000 and $29,269,000, respectively, towards these plans, which is included as a component of “operating” expenses on our consolidated statements of income.

Commitments and Contingencies

12 Months Ended

Dec. 31, 2017

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Insurance

We maintain general liability insurance with limits of $300,000,000 per occurrence and per property, and all risk property and rental value insurance with limits of $2.0 billion per occurrence, with sub-limits for certain perils such as flood and earthquake. Our California properties have earthquake insurance with coverage of $180,000,000 per occurrence and in the aggregate, subject to a deductible in the amount of 5% of the value of the affected property. We maintain coverage for terrorism acts with limits of $4.0 billion per occurrence and in the aggregate, and $2.0 billion per occurrence and in the aggregate for terrorism involving nuclear, biological, chemical and radiological (“NBCR”) terrorism events, as defined by Terrorism Risk Insurance Program Reauthorization Act of 2015, which expires in December 2020.

Penn Plaza Insurance Company, LLC (“PPIC”), our wholly owned consolidated subsidiary, acts as a re-insurer with respect to a portion of all risk property and rental value insurance and a portion of our earthquake insurance coverage, and as a direct insurer for coverage for acts of terrorism including NBCR acts. Coverage for acts of terrorism (excluding NBCR acts) is fully reinsured by third party insurance companies and the Federal government with no exposure to PPIC. For NBCR acts, PPIC is responsible for a deductible of $1,976,000 ($1,601,000 for 2018) and 17% (18% for 2018) of the balance of a covered loss and the Federal government is responsible for the remaining portion of a covered loss. We are ultimately responsible for any loss incurred by PPIC.

We continue to monitor the state of the insurance market and the scope and costs of coverage for acts of terrorism. However, we cannot anticipate what coverage will be available on commercially reasonable terms in the future. We are responsible for deductibles and losses in excess of our insurance coverage, which could be material.

Our debt instruments, consisting of mortgage loans secured by our properties which are non-recourse to us, senior unsecured notes and revolving credit agreements contain customary covenants requiring us to maintain insurance. Although we believe that we have adequate insurance coverage for purposes of these agreements, we may not be able to obtain an equivalent amount of coverage at reasonable costs in the future. Further, if lenders insist on greater coverage than we are able to obtain it could adversely affect our ability to finance our properties and expand our portfolio.


20.	Commitments and Contingencies – continued

Other Commitments and Contingencies

We are from time to time involved in legal actions arising in the ordinary course of business. In our opinion, after consultation with legal counsel, the outcome of such matters is not currently expected to have a material adverse effect on our financial position, results of operations or cash flows.

Each of our properties has been subjected to varying degrees of environmental assessment at various times. The environmental assessments did not reveal any material environmental contamination. However, there can be no assurance that the identification of new areas of contamination, changes in the extent or known scope of contamination, the discovery of additional sites, or changes in cleanup requirements would not result in significant costs to us.

Generally, our mortgage loans are non-recourse to us. However, in certain cases we have provided guarantees or master leased tenant space. These guarantees and master leases terminate either upon the satisfaction of specified circumstances or repayment of the underlying loans. As of December 31, 2017, the aggregate dollar amount of these guarantees and master leases is approximately $668,000,000.

As of December 31, 2017, $8,938,000 of letters of credit was outstanding under one of our unsecured revolving credit facilities. Our unsecured revolving credit facilities contain financial covenants that require us to maintain minimum interest coverage and maximum debt to market capitalization ratios, and provide for higher interest rates in the event of a decline in our ratings below Baa3/BBB. Our unsecured revolving credit facilities also contain customary conditions precedent to borrowing, including representations and warranties, and also contain customary events of default that could give rise to accelerated repayment, including such items as failure to pay interest or principal.

In September 2016, our 50.1% joint venture with Related was designated by ESD, an entity of New York State, to redevelop the historic Farley Post Office Building (see page 126). The joint venture 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 bear a full guaranty from Skanska AB.

As of December 31, 2017, we expect to fund additional capital to certain of our partially owned entities aggregating approximately $42,000,000.

As of December 31, 2017, we have construction commitments aggregating approximately $422,000,000.

Related Party Transactions	12 Months Ended
Related Party Transactions	Dec. 31, 2017
Related Party Transactions [Abstract]
Related Party Transactions	Related Party Transactions Alexander’s, Inc. We own 32.4% of Alexander’s. Steven Roth, the Chairman of Vornado’s Board of Trustee’s and its Chief Executive Officer is also the Chairman of the Board and Chief Executive Officer of Alexander’s. We provide various services to Alexander’s in accordance with management, development and leasing agreements. These agreements are described in Note 5 - Investments in Partially Owned Entities. Urban Edge Properties We own 4.5% of UE. In 2017 and 2016, we provided UE with information technology support. UE is providing us with leasing, development and property management services for (i) certain small retail properties that we plan to sell and (ii) our affiliate, Alexander's, Rego retail assets. Fees to UE for servicing the retail assets of Alexander’s are similar to the fees that we are receiving from Alexander’s as described in Note 5 - Investments in Partially Owned Entities. Interstate Properties (“Interstate”) Interstate is a general partnership in which Mr. Roth is the managing general partner. David Mandelbaum and Russell B. Wight, Jr., Trustees of Vornado and Directors of Alexander’s, are Interstate’s two other general partners. As of December 31, 2017, Interstate and its partners beneficially owned an aggregate of approximately 7.2% of the common shares of beneficial interest of Vornado and 26.2% of Alexander’s common stock. We manage and lease the real estate assets of Interstate pursuant to a management agreement for which we receive an annual fee equal to 4% of annual base rent and percentage rent. The management agreement has a term of 1 year and is automatically renewable unless terminated by either of the parties on 60 days’ notice at the end of the term. We believe, based upon comparable fees charged by other real estate companies, that the management agreement terms are fair to us. We earned $501,000, $521,000, and $541,000 of management fees under the agreement for the years ended December 31, 2017, 2016 and 2015, respectively.

Summary of Quarterly Results (Unaudited)

12 Months Ended

Dec. 31, 2017

Summary of Quarterly Results (Unaudited)

Vornado Realty Trust

The following summary represents the results of operations for each quarter in 2017 and 2016:



(Amounts in thousands, except per share amounts)			Net Income (Loss) Attributable to Common Shareholders ⁽¹⁾			Net Income (Loss) Per Common Share ⁽²⁾
	Revenues		Net Income (Loss) Attributable to Common Shareholders ⁽¹⁾			Basic			Diluted
2017
December 31	$	536,226	$	27,319		$	0.14		$	0.14
September 30	528,755		(29,026		)	(0.15		)	(0.15		)
June 30	511,087		115,972			0.61			0.61
March 31	508,058		47,752			0.25			0.25

2016
December 31	$	513,974	$	651,181		$	3.44		$	3.43
September 30	502,753		66,125			0.35			0.35
June 30	498,098		220,463			1.17			1.16
March 31	488,917		(114,163		)	(0.61		)	(0.61		)

____________________


(1)	Fluctuations among quarters resulted primarily from non-cash impairment losses, net gains on extinguishment of debt, net gains on sale of real estate and other items and from seasonality of business operations.


(2)	The total for the year may differ from the sum of the quarters as a result of weighting.

Summary of Quarterly Results (Unaudited)

Vornado Realty L.P.

The following summary represents the results of operations for each quarter in 2017 and 2016:



(Amounts in thousands, except per unit amounts)			Net Income (Loss) Attributable to Class A Unitholders ⁽¹⁾			Net Income (Loss) Per Class A Unit ⁽²⁾
	Revenues		Net Income (Loss) Attributable to Class A Unitholders ⁽¹⁾			Basic			Diluted
2017
December 31	$	536,226	$	29,123		$	0.14		$	0.14
September 30	528,755		(30,952		)	(0.16		)	(0.16		)
June 30	511,087		123,630			0.61			0.61
March 31	508,058		50,932			0.25			0.25

2016
December 31	$	513,974	$	693,377		$	3.44		$	3.43
September 30	502,753		70,442			0.35			0.35
June 30	498,098		234,945			1.17			1.16
March 31	488,917		(121,698		)	(0.61		)	(0.61		)

____________________


(1)	Fluctuations among quarters resulted primarily from non-cash impairment losses, net gains on extinguishment of debt, net gains on sale of real estate and other items and from seasonality of business operations.


(2)	The total for the year may differ from the sum of the quarters as a result of weighting.

Segment Information

12 Months Ended

Dec. 31, 2017

Segment Reporting [Abstract]

Segment Information

On January 1, 2017, we classified our investment in 85 Tenth Avenue in the "New York" segment as a result of the December 1, 2016 receipt of a 49.9% ownership interest in the property and prior repayment of our mezzanine loans receivable. Previously our investment in the mezzanine loans was classified in the "Other" segment.

On July 17, 2017, we completed the spin-off of our Washington, DC segment. Beginning in the third quarter of 2017, the historical financial results of our former Washington, DC segment are reflected in our consolidated financial statements as discontinued operations for all periods presented and are included in the Other segment. Subsequent to the Washington, DC spin-off, we operate in two segments, New York and Other, which is based on how we manage our business.

We have reclassified our 49.5% interest in 666 Fifth Avenue Office Condominium from "New York" to "Other" in all periods presented because we do not intend to hold this asset on a long-term basis.

Net Operating Income ("NOI") represents total revenues less operating expenses. We consider NOI to be the primary non-GAAP financial measure for making decisions and assessing the unlevered performance of our segments as it relates to the total return on assets as opposed to the levered return on equity. As properties are bought and sold based on NOI, we utilize this measure to make investment decisions as well as to compare the performance of our assets to that of our peers. NOI should not be considered a substitute for net income. NOI may not be comparable to similarly titled measures employed by other companies.

Below is a reconciliation of net income to NOI for the years ended December 31, 2017, 2016 and 2015.



(Amounts in thousands)	For the Year Ended December 31,
	2017			2016			2015
Net income	$	264,128		$	981,922		$	859,430

Deduct:
Our share of (income) loss from partially owned entities	(15,200		)	(168,948		)	9,947
Our share of (income) loss from real estate fund investments	(3,240		)	23,602			(74,081		)
Interest and other investment income, net	(37,793		)	(29,548		)	(27,240		)
Net gains on disposition of wholly owned and partially owned assets	(501		)	(160,433		)	(149,417		)
Loss (income) from discontinued operations	13,228			(404,912		)	(223,511		)
NOI attributable to noncontrolling interests in consolidated subsidiaries	(65,311		)	(66,182		)	(64,859		)

Add:
Depreciation and amortization expense	429,389			421,023			379,803
General and administrative expense	158,999			149,550			149,256
Acquisition and transaction related costs	1,776			9,451			12,511
NOI from partially owned entities	269,164			271,114			245,750
Interest and debt expense	345,654			330,240			309,298
Income tax expense (benefit)	41,090			7,229			(85,012		)
NOI at share	1,401,383			1,364,108			1,341,875
Non cash adjustments for straight-line rents, amortization of acquired below-market leases, net and other	(86,842		)	(170,477		)	(214,322		)
NOI at share - cash basis	$	1,314,541		$	1,193,631		$	1,127,553

23. Segment Information - continued

Below is a summary of NOI and selected balance sheet data by segment for the years ended December 31, 2017, 2016 and 2015.



(Amounts in thousands)	For the Year Ended December 31, 2017
	Total			New York			Other
Total revenues	$	2,084,126		$	1,779,307		$	304,819
Operating expenses	886,596			756,670			129,926
NOI - consolidated	1,197,530			1,022,637			174,893
Deduct: NOI attributable to noncontrolling interests in consolidated subsidiaries	(65,311		)	(45,899		)	(19,412		)
Add: Our share of NOI from partially owned entities	269,164			189,327			79,837
NOI at share	1,401,383			1,166,065			235,318
Non-cash adjustments for straight-line rents, amortization of acquired below-market leases, net and other	(86,842		)	(79,202		)	(7,640		)
NOI at share - cash basis	$	1,314,541		$	1,086,863		$	227,678
Balance Sheet Data:
Real estate, at cost	$	14,756,295		$	11,025,092		$	3,731,203
Investments in partially owned entities	1,056,829			861,430			195,399
Total assets	17,397,934			13,780,817			3,617,117



(Amounts in thousands)	For the Year Ended December 31, 2016
	Total			New York			Other
Total revenues	$	2,003,742		$	1,713,374		$	290,368
Operating expenses	844,566			716,754			127,812
NOI - consolidated	1,159,176			996,620			162,556
Deduct: NOI attributable to noncontrolling interests in consolidated subsidiaries	(66,182		)	(47,480		)	(18,702		)
Add: Our share of NOI from partially owned entities	271,114			159,386			111,728
NOI at share	1,364,108			1,108,526			255,582
Non-cash adjustments for straight-line rents, amortization of acquired below-market leases, net and other	(170,477		)	(143,239		)	(27,238		)
NOI at share - cash basis	$	1,193,631		$	965,287		$	228,344
Balance Sheet Data:
Real estate, at cost	$	14,187,820		$	10,787,730		$	3,400,090
Investments in partially owned entities	1,378,254			1,026,793			351,461
Total assets	20,814,847			13,310,524			7,504,323



(Amounts in thousands)	For the Year Ended December 31, 2015
	Total			New York			Other
Total revenues	$	1,985,495		$	1,695,925		$	289,570
Operating expenses	824,511			694,228			130,283
NOI - consolidated	1,160,984			1,001,697			159,287
Deduct: NOI attributable to noncontrolling interests in consolidated subsidiaries	(64,859		)	(42,905		)	(21,954		)
Add: Our share of NOI from partially owned entities	245,750			156,177			89,573
NOI at share	1,341,875			1,114,969			226,906
Non-cash adjustments for straight-line rents, amortization of acquired below-market leases, net and other	(214,322		)	(186,781		)	(27,541		)
NOI at share - cash basis	$	1,127,553		$	928,188		$	199,365

Subsequent Event	12 Months Ended
Subsequent Event	Dec. 31, 2017
Subsequent Events [Abstract]
Subsequent Event	Subsequent Event Stock-based Compensation On January 12, 2018, the Compensation Committee approved the issuance of appreciation-only long-term incentive plan units, or “AO LTIP Units”, pursuant to the Plan to certain of our officers and employees. In connection with the approval of AO LTIP Units, Vornado, in its capacity as sole general partner of the Operating Partnership, amended the Second Amended and Restated Agreement of Limited Partnership of the Operating Partnership (the “Partnership Agreement”) in order to establish the terms of the new class of partnership interests known as AO LTIP Units. AO LTIP Units are a class of partnership interests in the Operating Partnership that are intended to qualify as “profits interests” for federal income tax purposes and generally only allow the recipient to realize value to the extent the fair market value of a Vornado common share exceeds the threshold level set at the time the AO LTIP Units are granted, subject to any vesting conditions applicable to the award. The threshold level is intended to be equal to 100% of the then fair market value of a Vornado common share on the date of grant. The value of vested AO LTIP Units is realized through conversion of the AO LTIP Units into Class A Operating Partnership units. The number of Class A Units into which vested AO LTIP Units may be converted is determined based on the quotient of (i) the excess of the conversion value on the conversion date over the threshold value designated at the time the AO LTIP Unit was granted, divided by (ii) the conversion value on the conversion date. The “conversion value” is the value of a Vornado common share on the conversion date multiplied by the Conversion Factor as defined in the Partnership Agreement, which is currently one. AO LTIP Units have a term of ten years from the grant date. Each holder will generally receive special income allocations in respect of an AO LTIP Unit equal to 10% (or such other percentage specified in the applicable award agreement) of the income allocated in respect of a Class A Unit. Upon conversion of AO LTIP Units to Class A Units, holders will be entitled to receive in respect of each such AO LTIP Unit, on a per unit basis, a special distribution equal to 10% (or such other percentage specified in the applicable award agreement) of the distributions received by a holder of an equivalent number of Class A Units during the period from the grant date of the AO LTIP Units through the date of conversion. Other On January 4 and 11, 2018, we redeemed all of the outstanding 6.625% Series G and 6.625% Series I cumulative redeemable preferred shares/units at their redemption price of $25.00 per share/unit, or $470,000,000 in the aggregate, plus accrued and unpaid dividends/distributions through the date of redemption (see Note 10 - Shareholder’s Equity/Partners’ Capital). On January 5, 2018, we completed a $100,000,000 refinancing of 33-00 Northern Boulevard (Center Building), a 471,000 square foot office building in Long Island City, New York. The seven-year loan is at LIBOR plus 1.80%, which was swapped to a fixed rate of 4.14%. The loan is interest only for the first five years and includes principal amortization of $1,800,000 per annum beginning in year six. We realized net proceeds of approximately $37,200,000 after repayment of the existing 4.43% $59,800,000 mortgage and closing costs. On January 17, 2018, the Fund completed the sale of 11 East 68th Street, a property located on Madison Avenue and 68th Street, for $82,000,000. From the inception of this investment through its disposition, the Fund realized a $46,259,000 net gain.

SEC Schedule II Valuation and Qualifying Accounts

12 Months Ended

Dec. 31, 2017

Valuation and Qualifying Accounts [Abstract]

Schedule II Valuation and Qualifying Accounts

VORNADO REALTY TRUST AND VORNADO REALTY L.P.

SCHEDULE II

VALUATION AND QUALIFYING ACCOUNTS

December 31, 2017

(Amounts in Thousands)



Column A	Column B		Column C			Column D			Column E
Description	Balance at Beginning of Year		Additions Charged Against Operations			Uncollectible Accounts Written-off			Balance at End of Year
Year Ended December 31, 2017
Allowance for doubtful accounts	$	8,621	$	26		$	(2,167	)	$	6,480
Year Ended December 31, 2016
Allowance for doubtful accounts	$	10,075	$	1,827		$	(3,281	)	$	8,621
Year Ended December 31, 2015
Allowance for doubtful accounts	$	18,299	$	(1,429	)	$	(6,795	)	$	10,075

SEC Schedule III Real Estate and Accumulated Depreciation

12 Months Ended

Dec. 31, 2017

SEC Schedule III, Real Estate and Accumulated Depreciation Disclosure [Abstract]

Schedule III Real Estate and Accumulated Depreciation



COLUMN A	COLUMN B		COLUMN C				COLUMN D		COLUMN E						COLUMN F		COLUMN G	COLUMN H	COLUMN I
	Encumbrances (2)		Initial cost to company (1)				Costs capitalized subsequent to acquisition		Gross amount at which carried at close of period						Accumulated depreciation and amortization		Date of construction (4)	Date acquired	Life on which depreciation in latest income statement is computed
	Encumbrances (2)		Land		Buildings and improvements		Costs capitalized subsequent to acquisition		Land		Buildings and improvements		Total (3)		Accumulated depreciation and amortization		Date of construction (4)	Date acquired
New York
Manhattan
1290 Avenue of the Americas	$	950,000	$	515,539	$	923,653	$	222,019	$	515,539	$	1,145,672	$	1,661,211	$	302,588	1963	2007	(5)
697-703 Fifth Avenue (St. Regis - retail)	450,000		152,825		584,230		212		152,825		584,442		737,267		46,409			2014	(5)
350 Park Avenue	400,000		265,889		363,381		47,714		265,889		411,095		676,984		118,948		1960	2006	(5)
666 Fifth Avenue (Retail Condo)	390,000		189,005		471,072		—		189,005		471,072		660,077		61,050			2012	(5)
One Penn Plaza	—		—		412,169		236,985		—		649,154		649,154		294,104		1972	1998	(5)
100 West 33rd Street	398,402		242,776		247,970		34,479		242,776		282,449		525,225		79,163		1911	2007	(5)
1535 Broadway (Marriott Marquis)	—		—		249,285		149,716		—		399,001		399,001		25,326			2012	(5)
150 West 34th Street	205,000		119,657		268,509		—		119,657		268,509		388,166		17,341		1900	2015	(5)
1540 Broadway	—		105,914		214,208		28,825		105,914		243,033		348,947		54,741			2006	(5)
655 Fifth Avenue	140,000		102,594		231,903		—		102,594		231,903		334,497		24,837			2013	(5)
Two Penn Plaza	575,000		53,615		164,903		106,557		52,689		272,386		325,075		156,678		1968	1997	(5)
90 Park Avenue	—		8,000		175,890		176,847		8,000		352,737		360,737		117,458		1964	1997	(5)
Manhattan Mall	181,598		88,595		113,473		71,579		88,595		185,052		273,647		60,036		2009	2007	(5)
770 Broadway	700,000		52,898		95,686		121,075		52,898		216,761		269,659		89,691		1907	1998	(5)
888 Seventh Avenue	375,000		—		117,269		141,655		—		258,924		258,924		116,203		1980	1998	(5)
Eleven Penn Plaza	450,000		40,333		85,259		105,575		40,333		190,834		231,167		69,613		1923	1997	(5)
640 Fifth Avenue	—		38,224		25,992		156,605		38,224		182,597		220,821		52,575		1950	1997	(5)
909 Third Avenue	350,000		—		120,723		98,723		—		219,446		219,446		92,000		1969	1999	(5)
150 East 58th Street	—		39,303		80,216		44,769		39,303		124,985		164,288		57,827		1969	1998	(5)
595 Madison Avenue	—		62,731		62,888		35,314		62,731		98,202		160,933		37,977		1968	1999	(5)
330 West 34th Street	—		—		8,599		142,977		—		151,576		151,576		21,734		1925	1998	(5)
828-850 Madison Avenue	80,000		107,937		28,261		134		107,937		28,395		136,332		8,952			2005	(5)
33-00 Northern Boulevard	59,721		46,505		86,226		4,689		46,505		90,915		137,420		7,338		1915	2015	(5)
715 Lexington Avenue	—		—		26,903		63,244		63,000		27,147		90,147		8,623		1923	2001	(5)
478-486 Broadway	—		30,000		20,063		34,835		30,000		54,898		84,898		12,393		2009	2007	(5)
4 Union Square South	114,028		24,079		55,220		2,971		24,079		58,191		82,270		19,464		1965/2004	1993	(5)
260 Eleventh Avenue	—		—		80,482		867		—		81,349		81,349		5,470		1911	2015	(5)
510 Fifth Avenue	—		34,602		18,728		34,922		48,379		39,873		88,252		8,128			2010	(5)
606 Broadway	38,458		—		54,399		23,163		—		77,562		77,562		—			2016	(5)
40 Fulton Street	—		15,732		26,388		15,493		15,732		41,881		57,613		20,130		1987	1998	(5)
689 Fifth Avenue	—		19,721		13,446		24,555		19,721		38,001		57,722		12,231		1925	1998	(5)
443 Broadway	—		11,187		41,186		—		11,187		41,186		52,373		4,779			2013	(5)
40 East 66th Street	—		13,616		34,635		159		13,616		34,794		48,410		10,521			2005	(5)



COLUMN A	COLUMN B		COLUMN C				COLUMN D			COLUMN E						COLUMN F		COLUMN G	COLUMN H	COLUMN I
	Encumbrances (2)		Initial cost to company (1)				Costs capitalized subsequent to acquisition			Gross amount at which carried at close of period						Accumulated depreciation and amortization		Date of construction (4)	Date acquired	Life on which depreciation in latest income statement is computed
			Land		Buildings and improvements					Land		Buildings and improvements		Total (3)
New York - continued
Manhattan - continued
155 Spring Street	$	—	$	13,700	$	30,544	$	4,545		$	13,700	$	35,089	$	48,789	$	9,516		2007	(5)
435 Seventh Avenue	96,780		19,893		19,091		37			19,893		19,128		39,021		7,418		2002	1997	(5)
3040 M Street	—		7,830		27,490		3,583			7,830		31,073		38,903		9,923			2006	(5)
608 Fifth Avenue	—		—		—		38,829			—		38,829		38,829		8,859		1932	2012	(5)
692 Broadway	—		6,053		22,908		3,690			6,053		26,598		32,651		8,422			2005	(5)
131-135 West 33rd Street	—		8,315		21,312		24			8,315		21,336		29,651		879			2016	(5)
265 West 34th Street	—		28,500		—		23			28,500		23		28,523		—		1920	2015	(5)
304 Canal Street	—		3,511		12,905		11,115			3,511		24,020		27,531		160		1910	2014	(5)
677-679 Madison Avenue	—		13,070		9,640		413			13,070		10,053		23,123		2,913			2006	(5)
1131 Third Avenue	—		7,844		7,844		5,708			7,844		13,552		21,396		1,503			1997	(5)
486 Eighth Avenue	—		20,000		71		23			20,000		94		20,094		—		1928	2016	(5)
431 Seventh Avenue	—		16,700		2,751		—			16,700		2,751		19,451		739			2007	(5)
138-142 West 32nd Street	—		9,252		9,936		—			9,252		9,936		19,188		724		1920	2015	(5)
334 Canal Street	—		1,693		6,507		7,589			1,693		14,096		15,789		909			2011	(5)
267 West 34th Street	—		5,099		10,037		2			5,099		10,039		15,138		3,994			2013	(5)
1540 Broadway Garage	—		4,086		8,914		—			4,086		8,914		13,000		2,589		1990	2006	(5)
966 Third Avenue	—		8,869		3,631		—			8,869		3,631		12,500		393			2013	(5)
148 Spring Street	—		3,200		8,112		406			3,200		8,518		11,718		2,054			2008	(5)
150 Spring Street	—		3,200		5,822		294			3,200		6,116		9,316		1,501			2008	(5)
137 West 33rd Street	—		6,398		1,550		—			6,398		1,550		7,948		107		1932	2015	(5)
488 Eighth Avenue	—		10,650		1,767		(4,671		)	6,859		887		7,746		223			2007	(5)
484 Eighth Avenue	—		3,856		762		485			3,856		1,247		5,103		526			1997	(5)
825 Seventh Avenue	—		1,483		697		33			1,483		730		2,213		380			1997	(5)
339 Greenwich	—		2,622		12,333		—			2,622		12,333		14,955		245			2017	(5)
Other (including signage)	—		80,762		14,895		114,889			80,762		129,784		210,546		33,136
Total Manhattan	5,953,987		2,667,863		5,742,734		2,313,675			2,739,923		7,984,349		10,724,272		2,111,441

Other Properties
Hotel Pennsylvania	—		29,903		121,712		105,665			29,903		227,377		257,280		110,796		1919	1997	(5)
Paramus	—		—		—		25,176			1,036		24,140		25,176		15,188		1967	1987	(5)
Total Other Properties	—		29,903		121,712		130,841			30,939		251,517		282,456		125,984

Total New York	5,953,987		2,697,766		5,864,446		2,444,516			2,770,862		8,235,866		11,006,728		2,237,425



COLUMN A	COLUMN B		COLUMN C				COLUMN D			COLUMN E						COLUMN F		COLUMN G	COLUMN H	COLUMN I
	Encumbrances (2)		Initial cost to company (1)				Costs capitalized subsequent to acquisition			Gross amount at which carried at close of period						Accumulated depreciation and amortization		Date of construction (4)	Date acquired	Life on which depreciation in latest income statement is computed
	Encumbrances (2)		Land		Buildings and improvements		Costs capitalized subsequent to acquisition			Land		Buildings and improvements		Total (3)		Accumulated depreciation and amortization		Date of construction (4)	Date acquired
Other
theMART
Illinois
theMART, Chicago	$	675,000	$	64,528	$	319,146	$	380,720		$	64,535	$	699,859	$	764,394	$	283,135	1930	1998	(5)
527 West Kinzie, Chicago	—		5,166		—		32			5,166		32		5,198		—			1998
Total Illinois	675,000		69,694		319,146		380,752			69,701		699,891		769,592		283,135

New York
MMPI Piers	—		—		—		15,117			—		15,117		15,117		2,450			2008	(5)
Total theMART	675,000		69,694		319,146		395,869			69,701		715,008		784,709		285,585

555 California Street	569,215		221,903		893,324		152,004			209,916		1,057,315		1,267,231		261,218		1922, 1969-1970	2007	(5)
220 Central Park South	950,000		115,720		16,420		1,265,899			—		1,398,039		1,398,039		—			2005	(5)
Borgata Land, Atlantic City, NJ	55,606		83,089		—		—			83,089		—		83,089					2010	(5)
40 East 66th Residential	—		29,199		85,798		(93,222		)	8,454		13,321		21,775		3,662			2005	(5)
677-679 Madison	—		1,462		1,058		284			1,626		1,178		2,804		439			2006	(5)
Annapolis	—		—		9,652		—			—		9,652		9,652		3,709
Wayne Towne Center	—		—		26,137		52,771			—		78,908		78,908		16,448
Other	—		—		—		4,419			—		4,419		4,419		1,161			2005	(5)
Total Other	2,249,821		521,067		1,351,535		1,778,024			372,786		3,277,840		3,650,626		572,222

Leasehold improvements equipment and other	—		—		—		98,941			—		98,941		98,941		75,636

Total December 31, 2017	$	8,203,808	$	3,218,833	$	7,215,981	$	4,321,481		$	3,143,648	$	11,612,647	$	14,756,295	$	2,885,283

________________________________________


(1)	Initial cost is cost as of January 30, 1982 (the date on which we commenced real estate operations) unless acquired subsequent to that date see Column H.


(2)	Represents the contractual debt obligations.


(3)	The net basis of Vornado's assets and liabilities for tax reporting purposes is approximately $2.0 billion lower than the amounts reported for financial statement purposes.


(4)	Date of original construction –– many properties have had substantial renovation or additional construction –– see Column D.


(5)	Depreciation of the buildings and improvements are calculated over lives ranging from the life of the lease to forty years.

The following is a reconciliation of real estate assets and accumulated depreciation:



	Year Ended December 31,
	2017		2016		2015
Real Estate
Balance at beginning of period	$	14,187,820	$	13,545,295	$	12,438,940
Additions during the period:
Land	21,298		30,805		281,048
Buildings & improvements	598,820		854,194		1,030,043
	14,807,938		14,430,294		13,750,031
Less: Assets sold, written-off and deconsolidated	51,643		242,474		204,736
Balance at end of period	$	14,756,295	$	14,187,820	$	13,545,295

Accumulated Depreciation
Balance at beginning of period	$	2,581,514	$	2,356,728	$	2,209,778
Additions charged to operating expenses	360,391		346,755		309,306
	2,941,905		2,703,483		2,519,084
Less: Accumulated depreciation on assets sold, written-off and deconsolidated	56,622		121,969		162,356
Balance at end of period	$	2,885,283	$	2,581,514	$	2,356,728

SEC Schedule III Rollforward of Real Estate Assets and Accumulated Depreciation

12 Months Ended

Dec. 31, 2017

SEC Schedule III, Real Estate and Accumulated Depreciation Disclosure [Abstract]

Schedule III Real Estate and Accumulated Depreciation



COLUMN A	COLUMN B		COLUMN C				COLUMN D		COLUMN E						COLUMN F		COLUMN G	COLUMN H	COLUMN I
	Encumbrances (2)		Initial cost to company (1)				Costs capitalized subsequent to acquisition		Gross amount at which carried at close of period						Accumulated depreciation and amortization		Date of construction (4)	Date acquired	Life on which depreciation in latest income statement is computed
	Encumbrances (2)		Land		Buildings and improvements		Costs capitalized subsequent to acquisition		Land		Buildings and improvements		Total (3)		Accumulated depreciation and amortization		Date of construction (4)	Date acquired
New York
Manhattan
1290 Avenue of the Americas	$	950,000	$	515,539	$	923,653	$	222,019	$	515,539	$	1,145,672	$	1,661,211	$	302,588	1963	2007	(5)
697-703 Fifth Avenue (St. Regis - retail)	450,000		152,825		584,230		212		152,825		584,442		737,267		46,409			2014	(5)
350 Park Avenue	400,000		265,889		363,381		47,714		265,889		411,095		676,984		118,948		1960	2006	(5)
666 Fifth Avenue (Retail Condo)	390,000		189,005		471,072		—		189,005		471,072		660,077		61,050			2012	(5)
One Penn Plaza	—		—		412,169		236,985		—		649,154		649,154		294,104		1972	1998	(5)
100 West 33rd Street	398,402		242,776		247,970		34,479		242,776		282,449		525,225		79,163		1911	2007	(5)
1535 Broadway (Marriott Marquis)	—		—		249,285		149,716		—		399,001		399,001		25,326			2012	(5)
150 West 34th Street	205,000		119,657		268,509		—		119,657		268,509		388,166		17,341		1900	2015	(5)
1540 Broadway	—		105,914		214,208		28,825		105,914		243,033		348,947		54,741			2006	(5)
655 Fifth Avenue	140,000		102,594		231,903		—		102,594		231,903		334,497		24,837			2013	(5)
Two Penn Plaza	575,000		53,615		164,903		106,557		52,689		272,386		325,075		156,678		1968	1997	(5)
90 Park Avenue	—		8,000		175,890		176,847		8,000		352,737		360,737		117,458		1964	1997	(5)
Manhattan Mall	181,598		88,595		113,473		71,579		88,595		185,052		273,647		60,036		2009	2007	(5)
770 Broadway	700,000		52,898		95,686		121,075		52,898		216,761		269,659		89,691		1907	1998	(5)
888 Seventh Avenue	375,000		—		117,269		141,655		—		258,924		258,924		116,203		1980	1998	(5)
Eleven Penn Plaza	450,000		40,333		85,259		105,575		40,333		190,834		231,167		69,613		1923	1997	(5)
640 Fifth Avenue	—		38,224		25,992		156,605		38,224		182,597		220,821		52,575		1950	1997	(5)
909 Third Avenue	350,000		—		120,723		98,723		—		219,446		219,446		92,000		1969	1999	(5)
150 East 58th Street	—		39,303		80,216		44,769		39,303		124,985		164,288		57,827		1969	1998	(5)
595 Madison Avenue	—		62,731		62,888		35,314		62,731		98,202		160,933		37,977		1968	1999	(5)
330 West 34th Street	—		—		8,599		142,977		—		151,576		151,576		21,734		1925	1998	(5)
828-850 Madison Avenue	80,000		107,937		28,261		134		107,937		28,395		136,332		8,952			2005	(5)
33-00 Northern Boulevard	59,721		46,505		86,226		4,689		46,505		90,915		137,420		7,338		1915	2015	(5)
715 Lexington Avenue	—		—		26,903		63,244		63,000		27,147		90,147		8,623		1923	2001	(5)
478-486 Broadway	—		30,000		20,063		34,835		30,000		54,898		84,898		12,393		2009	2007	(5)
4 Union Square South	114,028		24,079		55,220		2,971		24,079		58,191		82,270		19,464		1965/2004	1993	(5)
260 Eleventh Avenue	—		—		80,482		867		—		81,349		81,349		5,470		1911	2015	(5)
510 Fifth Avenue	—		34,602		18,728		34,922		48,379		39,873		88,252		8,128			2010	(5)
606 Broadway	38,458		—		54,399		23,163		—		77,562		77,562		—			2016	(5)
40 Fulton Street	—		15,732		26,388		15,493		15,732		41,881		57,613		20,130		1987	1998	(5)
689 Fifth Avenue	—		19,721		13,446		24,555		19,721		38,001		57,722		12,231		1925	1998	(5)
443 Broadway	—		11,187		41,186		—		11,187		41,186		52,373		4,779			2013	(5)
40 East 66th Street	—		13,616		34,635		159		13,616		34,794		48,410		10,521			2005	(5)



COLUMN A	COLUMN B		COLUMN C				COLUMN D			COLUMN E						COLUMN F		COLUMN G	COLUMN H	COLUMN I
	Encumbrances (2)		Initial cost to company (1)				Costs capitalized subsequent to acquisition			Gross amount at which carried at close of period						Accumulated depreciation and amortization		Date of construction (4)	Date acquired	Life on which depreciation in latest income statement is computed
			Land		Buildings and improvements					Land		Buildings and improvements		Total (3)
New York - continued
Manhattan - continued
155 Spring Street	$	—	$	13,700	$	30,544	$	4,545		$	13,700	$	35,089	$	48,789	$	9,516		2007	(5)
435 Seventh Avenue	96,780		19,893		19,091		37			19,893		19,128		39,021		7,418		2002	1997	(5)
3040 M Street	—		7,830		27,490		3,583			7,830		31,073		38,903		9,923			2006	(5)
608 Fifth Avenue	—		—		—		38,829			—		38,829		38,829		8,859		1932	2012	(5)
692 Broadway	—		6,053		22,908		3,690			6,053		26,598		32,651		8,422			2005	(5)
131-135 West 33rd Street	—		8,315		21,312		24			8,315		21,336		29,651		879			2016	(5)
265 West 34th Street	—		28,500		—		23			28,500		23		28,523		—		1920	2015	(5)
304 Canal Street	—		3,511		12,905		11,115			3,511		24,020		27,531		160		1910	2014	(5)
677-679 Madison Avenue	—		13,070		9,640		413			13,070		10,053		23,123		2,913			2006	(5)
1131 Third Avenue	—		7,844		7,844		5,708			7,844		13,552		21,396		1,503			1997	(5)
486 Eighth Avenue	—		20,000		71		23			20,000		94		20,094		—		1928	2016	(5)
431 Seventh Avenue	—		16,700		2,751		—			16,700		2,751		19,451		739			2007	(5)
138-142 West 32nd Street	—		9,252		9,936		—			9,252		9,936		19,188		724		1920	2015	(5)
334 Canal Street	—		1,693		6,507		7,589			1,693		14,096		15,789		909			2011	(5)
267 West 34th Street	—		5,099		10,037		2			5,099		10,039		15,138		3,994			2013	(5)
1540 Broadway Garage	—		4,086		8,914		—			4,086		8,914		13,000		2,589		1990	2006	(5)
966 Third Avenue	—		8,869		3,631		—			8,869		3,631		12,500		393			2013	(5)
148 Spring Street	—		3,200		8,112		406			3,200		8,518		11,718		2,054			2008	(5)
150 Spring Street	—		3,200		5,822		294			3,200		6,116		9,316		1,501			2008	(5)
137 West 33rd Street	—		6,398		1,550		—			6,398		1,550		7,948		107		1932	2015	(5)
488 Eighth Avenue	—		10,650		1,767		(4,671		)	6,859		887		7,746		223			2007	(5)
484 Eighth Avenue	—		3,856		762		485			3,856		1,247		5,103		526			1997	(5)
825 Seventh Avenue	—		1,483		697		33			1,483		730		2,213		380			1997	(5)
339 Greenwich	—		2,622		12,333		—			2,622		12,333		14,955		245			2017	(5)
Other (including signage)	—		80,762		14,895		114,889			80,762		129,784		210,546		33,136
Total Manhattan	5,953,987		2,667,863		5,742,734		2,313,675			2,739,923		7,984,349		10,724,272		2,111,441

Other Properties
Hotel Pennsylvania	—		29,903		121,712		105,665			29,903		227,377		257,280		110,796		1919	1997	(5)
Paramus	—		—		—		25,176			1,036		24,140		25,176		15,188		1967	1987	(5)
Total Other Properties	—		29,903		121,712		130,841			30,939		251,517		282,456		125,984

Total New York	5,953,987		2,697,766		5,864,446		2,444,516			2,770,862		8,235,866		11,006,728		2,237,425



COLUMN A	COLUMN B		COLUMN C				COLUMN D			COLUMN E						COLUMN F		COLUMN G	COLUMN H	COLUMN I
	Encumbrances (2)		Initial cost to company (1)				Costs capitalized subsequent to acquisition			Gross amount at which carried at close of period						Accumulated depreciation and amortization		Date of construction (4)	Date acquired	Life on which depreciation in latest income statement is computed
	Encumbrances (2)		Land		Buildings and improvements		Costs capitalized subsequent to acquisition			Land		Buildings and improvements		Total (3)		Accumulated depreciation and amortization		Date of construction (4)	Date acquired
Other
theMART
Illinois
theMART, Chicago	$	675,000	$	64,528	$	319,146	$	380,720		$	64,535	$	699,859	$	764,394	$	283,135	1930	1998	(5)
527 West Kinzie, Chicago	—		5,166		—		32			5,166		32		5,198		—			1998
Total Illinois	675,000		69,694		319,146		380,752			69,701		699,891		769,592		283,135

New York
MMPI Piers	—		—		—		15,117			—		15,117		15,117		2,450			2008	(5)
Total theMART	675,000		69,694		319,146		395,869			69,701		715,008		784,709		285,585

555 California Street	569,215		221,903		893,324		152,004			209,916		1,057,315		1,267,231		261,218		1922, 1969-1970	2007	(5)
220 Central Park South	950,000		115,720		16,420		1,265,899			—		1,398,039		1,398,039		—			2005	(5)
Borgata Land, Atlantic City, NJ	55,606		83,089		—		—			83,089		—		83,089					2010	(5)
40 East 66th Residential	—		29,199		85,798		(93,222		)	8,454		13,321		21,775		3,662			2005	(5)
677-679 Madison	—		1,462		1,058		284			1,626		1,178		2,804		439			2006	(5)
Annapolis	—		—		9,652		—			—		9,652		9,652		3,709
Wayne Towne Center	—		—		26,137		52,771			—		78,908		78,908		16,448
Other	—		—		—		4,419			—		4,419		4,419		1,161			2005	(5)
Total Other	2,249,821		521,067		1,351,535		1,778,024			372,786		3,277,840		3,650,626		572,222

Leasehold improvements equipment and other	—		—		—		98,941			—		98,941		98,941		75,636

Total December 31, 2017	$	8,203,808	$	3,218,833	$	7,215,981	$	4,321,481		$	3,143,648	$	11,612,647	$	14,756,295	$	2,885,283

________________________________________


(1)	Initial cost is cost as of January 30, 1982 (the date on which we commenced real estate operations) unless acquired subsequent to that date see Column H.


(2)	Represents the contractual debt obligations.


(3)	The net basis of Vornado's assets and liabilities for tax reporting purposes is approximately $2.0 billion lower than the amounts reported for financial statement purposes.


(4)	Date of original construction –– many properties have had substantial renovation or additional construction –– see Column D.


(5)	Depreciation of the buildings and improvements are calculated over lives ranging from the life of the lease to forty years.

The following is a reconciliation of real estate assets and accumulated depreciation:



	Year Ended December 31,
	2017		2016		2015
Real Estate
Balance at beginning of period	$	14,187,820	$	13,545,295	$	12,438,940
Additions during the period:
Land	21,298		30,805		281,048
Buildings & improvements	598,820		854,194		1,030,043
	14,807,938		14,430,294		13,750,031
Less: Assets sold, written-off and deconsolidated	51,643		242,474		204,736
Balance at end of period	$	14,756,295	$	14,187,820	$	13,545,295

Accumulated Depreciation
Balance at beginning of period	$	2,581,514	$	2,356,728	$	2,209,778
Additions charged to operating expenses	360,391		346,755		309,306
	2,941,905		2,703,483		2,519,084
Less: Accumulated depreciation on assets sold, written-off and deconsolidated	56,622		121,969		162,356
Balance at end of period	$	2,885,283	$	2,581,514	$	2,356,728

Basis of Presentation and Significant Accounting Policies (Policies)

12 Months Ended

Dec. 31, 2017

Accounting Policies [Abstract]

Basis of Presentation

Recently Issued Accounting Literature


2.	Basis of Presentation and Significant Accounting Policies – continued

Recently Issued Accounting Literature - continued


2.	Basis of Presentation and Significant Accounting Policies – continued

Recently Issued Accounting Literature - continued

Real Estate

The Fund is accounted for under ASC 946, Financial Services – Investment Companies (“ASC 946”) and its investments are reported on its balance sheet at fair value, with changes in value each period recognized in earnings. We consolidate the accounts of the Fund into our consolidated financial statements, retaining the fair value basis of accounting.

The Crowne Plaza Joint Venture is also accounted for under ASC 946 and we consolidate the accounts of the joint venture into our consolidated financial statements, retaining the fair value basis of accounting.

Partially Owned Entities

Cash And Cash Equivalents

Restricted Cash

Allowance For Doubtful Accounts

Deferred Charges

Revenue Recognition

Revenue Recognition: We have the following revenue sources and revenue recognition policies:

•


•	Percentage Rent — income arising from retail tenant leases that is contingent upon tenant sales exceeding defined thresholds. These rents are recognized only after the contingency has been removed (i.e., when tenant sales thresholds have been achieved).


•	Hotel Revenue — income arising from the operation of the Hotel Pennsylvania which consists of rooms revenue, food and beverage revenue, and banquet revenue. Income is recognized when rooms are occupied. Food and beverage and banquet revenue are recognized when the services have been rendered.


•	Trade Shows Revenue — income arising from the operation of trade shows, including rentals of booths. This revenue is recognized when the trade shows have occurred.


•	Expense Reimbursements — revenue arising from tenant leases which provide for the recovery of all or a portion of the operating expenses and real estate taxes of the respective property. This revenue is recognized in the same periods as the expenses are incurred.


•	Management, Leasing and Other Fees — income arising from contractual agreements with third parties or with partially owned entities. This revenue is recognized as the related services are performed under the respective agreements.

Derivative Instruments and Hedging Activities

Income Taxes

Redeemable Noncontrolling Interests

Stockholders' Equity

Class A Units (Vornado Realty L.P.)

Fair Value Measurement

Basis of Presentation and Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2017

Accounting Policies [Abstract]

Reconciliation of net income attributable to common shareholders to estimated taxable income

The following table reconciles net income attributable to Vornado common shareholders to estimated taxable income for the years ended December 31, 2017, 2016 and 2015.



(Amounts in thousands)	For the Year Ended December 31,
	2017			2016			2015
Net income attributable to Vornado common shareholders	$	162,017		$	823,606		$	679,856
Book to tax differences (unaudited):
Depreciation and amortization	213,083			302,092			227,297
Impairment losses	49,062			170,332			20,281
Straight-line rent adjustments	(36,696		)	(137,941		)	(144,727		)
Tax expense related to the reduction of the value of our taxable REIT subsidiaries' deferred tax assets	32,663			—			(84,862		)
Sale of real estate and other capital transactions	11,991			(39,109		)	320,326
Vornado stock options	(6,383		)	(3,593		)	(8,278		)
Earnings of partially owned entities	(3,054		)	(149,094		)	(5,299		)
Net gain on extinguishment of Skyline properties debt	—			(457,970		)	—
Tangible property regulations	—			—			(575,618		)	⁽¹⁾
Other, net	25,057			9,121			58,748
Estimated taxable income (unaudited)	$	447,740		$	517,444		$	487,724

____________________________________


(1)	Represents one-time deductions pursuant to the implementation of the tangible property regulations issued by the Internal Revenue Service.

Real Estate Fund Investments (Tables)

12 Months Ended

Dec. 31, 2017

Real Estate Fund Investments [Abstract]

Schedule Of Income And Loss From The Fund

Below is a summary of (loss) income from the Fund and the Crowne Plaza Joint Venture for the years ended December 31, 2017, 2016 and 2015.



(Amounts in thousands)	For the Year Ended December 31,
	2017			2016			2015
Net investment income	$	18,507		$	17,053		$	16,329
Net realized gains on exited investments	36,078			14,761			26,036
Previously recorded unrealized gain on exited investments	(25,538		)	(14,254		)	(23,279		)
Net unrealized (loss) gain on held investments	(25,807		)	(41,162		)	54,995
Income (loss) from real estate fund investments	3,240			(23,602		)	74,081
Less (income) loss attributable to noncontrolling interests in consolidated subsidiaries	(14,044		)	2,560			(40,117		)
(Loss) income from real estate fund investments attributable to the Operating Partnership⁽¹⁾	(10,804		)	(21,042		)	33,964
Less loss (income) attributable to noncontrolling interests in the Operating Partnership	673			1,270			(2,011		)
(Loss) income from real estate fund investments attributable to Vornado	$	(10,131	)	$	(19,772	)	$	31,953

________________________________________


(1)	Excludes $4,091, $3,831, and $2,939 of management and leasing fees in the years ended December 31, 2017, 2016 and 2015, respectively, which are included as a component of "fee and other income" on our consolidated statements of income.

Marketable Securities (Tables)

12 Months Ended

Dec. 31, 2017

Marketable Securities [Abstract]

Unrealized Gain (Loss) on Investments

Below is a summary of our marketable securities portfolio as of December 31, 2017 and 2016.




(Amounts in thousands)	As of December 31, 2017						As of December 31, 2016
	Fair Value		GAAP Cost		Unrealized Gain		Fair Value		GAAP Cost		Unrealized Gain
Equity securities:
Lexington Realty Trust	$	178,226	$	72,549	$	105,677	$	199,465	$	72,549	$	126,916
Other	4,526		650		3,876		4,239		650		3,589
	$	182,752	$	73,199	$	109,553	$	203,704	$	73,199	$	130,505

Investments in Partially Owned Entities (Tables)

12 Months Ended

Dec. 31, 2017

Equity Method Investments and Joint Ventures [Abstract]

Equity Method Investments

Below is a schedule summarizing our investments in partially owned entities.



(Amounts in thousands)	Percentage Ownership at December 31, 2017	As of December 31,
	Percentage Ownership at December 31, 2017	2017			2016
Investments:
Partially owned office buildings/land⁽¹⁾	Various	$	504,393		$	681,265
Alexander’s	32.4%	126,400			129,324
PREIT	8.0%	66,572			122,883
UE	4.5%	46,152			24,523
Other investments⁽²⁾	Various	313,312			420,259
		$	1,056,829		$	1,378,254

330 Madison Avenue⁽³⁾	25.0%	$	(53,999	)	$	—
7 West 34th Street⁽⁴⁾	53.0%	(47,369		)	(43,022		)
		$	(101,368	)	$	(43,022	)

________________________________________


(1)	Includes interests in 280 Park Avenue, 650 Madison Avenue, One Park Avenue, 330 Madison Avenue (in 2016 only - see (3) below), 512 West 22nd Street, 85 Tenth Avenue, 61 Ninth Avenue and others.


(2)	Includes interests in Independence Plaza, Fashion Centre Mall/Washington Tower, Rosslyn Plaza, 50-70 West 93rd Street, Moynihan Office Building, Toys (which has a carrying amount of zero), 666 Fifth Avenue Office Condominium and others.


(3)	Our negative basis resulted from a refinancing distribution and is included in "other liabilities" on our consolidated balance sheets (in 2017 only).


(4)	Our negative basis results from a deferred gain from the sale of a 47.0% ownership interest in the property on May 27, 2016 and is included in "other liabilities" on our consolidated balance sheets.


5.	Investments in Partially Owned Entities – continued

Below is a schedule of net income (loss) from partially owned entities.



(Amounts in thousands)	Percentage Ownership at December 31, 2017	As of December 31,
	Percentage Ownership at December 31, 2017	2017			2016			2015
Our Share of Net Income (Loss):
PREIT (see page 126 for details):
Non-cash impairment loss	8.0%	$	(44,465	)	$	—		$	—
Equity in net loss		(8,860		)	(5,213		)	(7,450		)
		(53,325		)	(5,213		)	(7,450		)

Alexander's (see page 125 for details):
Equity in net income	32.4%	25,820			27,470			24,209
Management, leasing and development fees		6,033			6,770			6,869
		31,853			34,240			31,078

UE (see page 126 for details):
Net gain resulting from UE operating partnership unit issuances	4.5%	21,100			—			—
Equity in net income		5,558			5,003			2,430
Management fees		670			836			1,964
		27,328			5,839			4,394

Partially owned office buildings⁽¹⁾	Various	2,020			5,773			19,808

Other investments⁽²⁾	Various	7,324			128,309			(57,777		)

		$	15,200		$	168,948		$	(9,947	)

____________________


(1)	Includes interests in 280 Park Avenue, 650 Madison Avenue, One Park Avenue, 7 West 34th Street (in 2017 and 2016 only), 330 Madison Avenue, 512 West 22nd Street, 85 Tenth Avenue (in 2017 only) and others. In 2015, we recognized our $12,800 share of a write-off of a below-market lease liability related to a tenant vacating at 650 Madison Avenue.

(2)


5.	Investments in Partially Owned Entities – continued

Below is a summary of the debt of our partially owned entities as of December 31, 2017 and 2016.



(Amounts in thousands)	Percentage Ownership at December 31, 2017	Maturity	Interest Rate at December 31, 2017	100% Partially Owned Entities’ Debt at December 31, ⁽¹⁾
	Percentage Ownership at December 31, 2017	Maturity	Interest Rate at December 31, 2017	2017	2016
Partially owned office buildings⁽²⁾:
Mortgages payable	Various	2019-2026	3.76%	3,934,894	3,227,053

PREIT:
Mortgages payable	8.0%	2018-2025	3.61%	1,586,045	1,747,543

UE:
Mortgages payable	4.5%	2018-2034	4.11%	1,415,806	1,209,994

Alexander's:
Mortgages payable	32.4%	2018-2024	2.61%	1,252,440	1,056,147

Other⁽³⁾:
Mortgages payable and other	Various	2018-2023	7.73%	8,601,383	8,540,710

________________________________________


(1)	All amounts are non-recourse to us except the $300,000 mortgage loan on 7 West 34th Street which we guaranteed in connection with the sale of a 47.0% equity interest in May 2016.


(2)	Includes 280 Park Avenue, 650 Madison Avenue, One Park Avenue, 7 West 34th Street, 330 Madison Avenue, 512 West 22nd Street, 85 Tenth Avenue and others.


(3)	Includes Independence Plaza, Fashion Centre Mall/Washington Tower, 50-70 West 93rd Street, Toys, 666 Fifth Avenue Office Condominium, Moynihan Office Building and others.

Dispositions (Tables)

12 Months Ended

Dec. 31, 2016

Discontinued Operations and Disposal Groups [Abstract]

Schedule Of Assets And Liabilities And Results Of Operations Related To Discontinued Operations

The tables below set forth the assets and liabilities related to discontinued operations as of December 31, 2017 and 2016, and their combined results of operations and cash flows for the years ended December 31, 2017, 2016 and 2015.



(Amounts in thousands)	Balance as of December 31,
	2017		2016
Assets related to discontinued operations:
Real estate, net	$	—	$	3,222,720
Investments in partially owned entities	—		49,765
Other assets	1,357		296,128
	$	1,357	$	3,568,613

Liabilities related to discontinued operations:
Mortgages payable, net	$	—	$	1,165,015
Other liabilities	3,620		94,428
	$	3,620	$	1,259,443



(Amounts in thousands)	For the Year Ended December 31,
	2017			2016			2015
Income from discontinued operations:
Total revenues	$	261,290		$	521,084		$	558,663
Total expenses	212,169			442,032			477,299
	49,121			79,052			81,364
JBGS spin-off transaction costs	(68,662		)	(16,586		)	—
Net gains on sale of real estate, a lease position and other	6,605			5,074			167,801
Income (loss) from partially owned assets	435			(3,559		)	(2,022		)
Net gain on early extinguishment of debt	—			487,877			—
Impairment losses	—			(161,165		)	(256		)
Net gain on sale of our 20% interest in Fairfax Square	—			15,302			—
UE spin-off transaction related costs	—			—			(22,972		)
Pretax (loss) income from discontinued operations	(12,501		)	405,995			223,915
Income tax expense	(727		)	(1,083		)	(404		)
(Loss) income from discontinued operations	$	(13,228	)	$	404,912		$	223,511

Cash flows related to discontinued operations:
Cash flows from operating activities	$	42,578		$	157,484		$	155,686
Cash flows from investing activities	(48,377		)	(216,125		)	315,432

- Definition

Tabular disclosure of information related to a disposal group. Includes, but is not limited to, a discontinued operation, disposal classified as held-for-sale or disposed of by means other than sale or disposal of an individually significant component.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 45
-Paragraph 11
-URI http://asc.fasb.org/extlink&oid=65878427&loc=SL51721533-107759

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 50
-Paragraph 4B
-URI http://asc.fasb.org/extlink&oid=64827811&loc=SL51721665-107760

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=64827811&loc=d3e1474-107760

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=64827811&loc=d3e1361-107760

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 50
-Paragraph 7
-URI http://asc.fasb.org/extlink&oid=64827811&loc=SL51721683-107760

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 360
-SubTopic 10
-Section 50
-Paragraph 3A
-URI http://asc.fasb.org/extlink&oid=84176398&loc=SL51724579-110230

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 50
-Paragraph 5C
-URI http://asc.fasb.org/extlink&oid=64827811&loc=SL51721675-107760

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 50
-Paragraph 4A
-URI http://asc.fasb.org/extlink&oid=64827811&loc=SL51721663-107760

Reference 9: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
-Topic 360
-SubTopic 10
-Section 50
-Paragraph 3
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+ Details

Identified Intangible Assets and Liabilities (Tables)

12 Months Ended

Dec. 31, 2017

Schedule of Identified Intangible Assets and Intangible Liabilities

The following summarizes our identified intangible assets (primarily above-market leases) and liabilities (primarily below-market leases) as of December 31, 2017 and 2016.



(Amounts in thousands)	Balance as of December 31,
	2017			2016
Identified intangible assets:
Gross amount	$	310,097		$	384,090
Accumulated amortization	(150,837		)	(194,422		)
Total, net	$	159,260		$	189,668
Identified intangible liabilities (included in deferred revenue):
Gross amount	$	530,497		$	550,454
Accumulated amortization	(324,897		)	(298,238		)
Total, net	$	205,600		$	252,216

Below Market Leases Net Of Above Market Leases

Schedule of future amortization expense of intangible assets



(Amounts in thousands)
2018	$	41,969
2019	30,543
2020	22,260
2021	17,489
2022	14,306

Other Identified Intangible Assets

Schedule of future amortization expense of intangible assets



(Amounts in thousands)
2018	$	19,449
2019	15,169
2020	11,960
2021	10,981
2022	9,425

Tenant Under Ground Leases

Schedule of future amortization expense of intangible assets



(Amounts in thousands)
2018	$	1,747
2019	1,747
2020	1,747
2021	1,747
2022	1,747

Debt (Tables)

12 Months Ended

Dec. 31, 2017

Debt Disclosure [Abstract]

Schedule of Debt

The following is a summary of our debt:



(Amounts in thousands)	Weighted Average Interest Rate at December 31, 2017	Balance at December 31,
	Weighted Average Interest Rate at December 31, 2017	2017			2016
Mortgages Payable:
Fixed rate	3.65%	$	5,461,706		$	5,479,547
Variable rate	3.33%	2,742,133			2,727,133
Total	3.54%	8,203,839			8,206,680
Deferred financing costs, net and other		(66,700		)	(93,432		)
Total, net		$	8,137,139		$	8,113,248
Unsecured Debt:
Senior unsecured notes	4.21%	$	850,000		$	850,000
Deferred financing costs, net and other		(6,386		)	(4,423		)
Senior unsecured notes, net		843,614			845,577

Unsecured term loan	2.68%	750,000			375,000
Deferred financing costs, net and other		(1,266		)	(2,785		)
Unsecured term loan, net		748,734			372,215

Unsecured revolving credit facilities	—%	—			115,630

Total, net		$	1,592,348		$	1,333,422

Schedule of Maturities of Long-Term Debt

As of December 31, 2017, the principal repayments required for the next five years and thereafter are as follows:



(Amounts in thousands)	Mortgages Payable		Senior Unsecured Debt and Unsecured Resolving Credit Unsecured Facilities
Year Ended December 31,
2018	$	2,009,030	$	750,000
2019	973,294		—
2020	1,867,567		—
2021	1,613,948		—
2022	950,000		400,000
Thereafter	790,000		450,000

- Definition

Tabular disclosure of long-debt instruments or arrangements, including identification, terms, features, collateral requirements and other information necessary to a fair presentation. These are debt arrangements that originally required repayment more than twelve months after issuance or greater than the normal operating cycle of the entity, if longer.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02.22)
-URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682

Reference 2: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
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Reference 3: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
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-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=75038535&loc=d3e64711-112823

Reference 4: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
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-Paragraph 1
-Subparagraph (SX 210.4-08.(e),(f))
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-Name Accounting Standards Codification
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Reference 6: http://www.xbrl.org/2003/role/presentationRef
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Reference 7: http://www.xbrl.org/2003/role/presentationRef
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Reference 8: http://www.xbrl.org/2003/role/presentationRef
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Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
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-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=64930785&loc=d3e28551-108399

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 7
-URI http://asc.fasb.org/extlink&oid=84159872&loc=d3e21521-112644

+ Details

Redeemable Noncontrolling Interests / Redeemable Partnership Units (Tables)

12 Months Ended

Dec. 31, 2017

Noncontrolling Interest [Abstract]

Operating Partnership Units Held By Third Parties

Below are the details of redeemable noncontrolling interests/redeemable partnership units as of December 31, 2017 and 2016.



(Amounts in thousands, except units and per unit amounts)	Balance as of December 31,				Units Outstanding at December 31,		Per Unit Liquidation Preference		Preferred or Annual Distribution Rate
Unit Series	2017		2016		2017	2016	Per Unit Liquidation Preference		Preferred or Annual Distribution Rate
Common:
Class A units held by third parties	$	979,509	$	1,273,018	12,528,899	12,197,162	n/a		$	2.62

Perpetual Preferred/Redeemable Preferred⁽¹⁾:
5.00% D-16 Cumulative Redeemable	$	1,000	$	1,000	1	1	$	1,000,000.00	$	50,000.00
3.25% D-17 Cumulative Redeemable	$	4,428	$	4,428	177,100	177,100	$	25.00	$	0.8125

________________________________________


(1)	Holders may tender units for redemption to the Operating Partnership for cash at their stated redemption amount; Vornado, at its option, may assume that obligation and pay the holders either cash or Vornado preferred shares on a one-for-one basis. These units are redeemable at Vornado's option at any time.

Summary Of Activity Of Redeemable Noncontrolling Interests

Below is a table summarizing the activity of redeemable noncontrolling interests/redeemable partnership units.



(Amounts in thousands)
Balance, December 31, 2015	$	1,229,221
Net income	53,654
Other comprehensive income	4,699
Distributions	(31,342		)
Redemption of Class A units for Vornado common shares, at redemption value	(36,510		)
Adjustments to carry redeemable Class A units at redemption value	26,251
Other, net	32,473
Balance, December 31, 2016	1,278,446
Net income	10,910
Other comprehensive income	643
Distributions	(33,229		)
Redemption of Class A units for Vornado common shares, at redemption value	(38,747		)
Adjustments to carry redeemable Class A units at redemption value (including $224,069 attributable to the spin-off of JBGS)	(268,494		)
Other, net	35,408
Balance, December 31, 2017	$	984,937

Shareholders' Equity (Tables)

12 Months Ended

Dec. 31, 2017

Schedule Of Preferred Units

The following table sets forth the details of our preferred shares of beneficial interest and the preferred units of the Operating Partnership as of December 31, 2017 and 2016.



(Amounts in thousands, except share/unit and per share/per unit amounts)
							Per Share/Unit
	Balance as of December 31,				Shares/Units Outstanding at December 31,		Liquidation Preference		Annual Dividend/ Distribution⁽¹⁾
Preferred Shares/Units	2017		2016		2017	2016	Liquidation Preference		Annual Dividend/ Distribution⁽¹⁾
Convertible Preferred:
6.5% Series A: authorized 83,977 shares/units⁽²⁾	$	1,102	$	1,264	19,573	24,829	$	50.00	$	3.25
Cumulative Redeemable Preferred:
6.625% Series G: authorized 8,000,000 shares/units⁽³⁾⁽⁴⁾	—		193,135		—	8,000,000	25.00		1.65625
6.625% Series I: authorized 10,800,000 shares/units⁽³⁾⁽⁴⁾	—		262,379		—	10,800,000	25.00		1.65625
5.70% Series K: authorized 12,000,000 shares/units⁽³⁾	290,971		290,971		12,000,000	12,000,000	25.00		1.425
5.40% Series L: authorized 12,000,000 shares/units⁽³⁾	290,306		290,306		12,000,000	12,000,000	25.00		1.35
5.25% Series M: authorized 12,780,000 shares/units⁽³⁾	309,609		—		12,780,000	—	25.00		1.3125		⁽⁵⁾
	$	891,988	$	1,038,055	36,799,573	42,824,829

________________________________________


(1)	Dividends on preferred shares and distributions on preferred units are cumulative and are payable quarterly in arrears.


(2)	Redeemable at the option of Vornado under certain circumstances, at a redemption price of 1.9531 common shares/Class A units per Series A Preferred Share/Unit plus accrued and unpaid dividends/distributions through the date of redemption, or convertible at any time at the option of the holder for 1.9531 common shares/Class A units per Series A Preferred Share/Unit.


(3)	Redeemable at Vornado's option at a redemption price of $25.00 per share/unit, plus accrued and unpaid dividends/distributions through the date of redemption.


(4)	In December 2017, we called for redemption all of the outstanding 6.625% Series G and 6.625% Series I cumulative redeemable preferred shares/units. These shares were redeemed on January 4 and 11, 2018. As a result, we reclassed to liabilities all of the outstanding shares/units with the aggregate amount of $455,514 on our consolidated balance sheets as of December 31, 2017.


(5)	Annual dividend/distribution rate commencing in December 2017.

Schedule of Accumulated Other Comprehensive Income (Loss)

The following table sets forth the changes in accumulated other comprehensive income (loss) by component.



(Amounts in thousands)	For the Year Ended December 31, 2017
	Total			Securities available- for-sale			Pro rata share of nonconsolidated subsidiaries' OCI			Interest rate swap		Other
Balance as of December 31, 2016	$	118,972		$	130,505		$	(12,058	)	$	8,066	$	(7,541	)
OCI before classifications	(4,692		)	(20,951		)	1,425			15,476		(642		)
Amounts reclassified from AOCI	14,402			—			14,402			—		—
Balance as of December 31, 2017	$	128,682		$	109,554		$	3,769		$	23,542	$	(8,183	)

Fair Value Measurements (Tables)

12 Months Ended

Dec. 31, 2017

Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation

Fair value, measurement inputs, disclosure

below aggregate the fair values of these financial assets and liabilities by their levels in the fair value hierarchy at December 31, 2017 and 2016, respectively.



(Amounts in thousands)	As of December 31, 2017
	Total		Level 1		Level 2		Level 3
Marketable securities	$	182,752	$	182,752	$	—	$	—
Real estate fund investments	354,804		—		—		354,804
Deferred compensation plan assets ($11,545 included in restricted cash and $97,633 in other assets)	109,178		69,050		—		40,128
Interest rate swaps (included in other assets)	27,472		—		27,472		—
Total assets	$	674,206	$	251,802	$	27,472	$	394,932

Mandatorily redeemable instruments (included in other liabilities)	$	520,561	$	520,561	$	—	$	—
Interest rate swaps (included in other liabilities)	1,052		—		1,052		—
Total liabilities	$	521,613	$	520,561	$	1,052	$	—



(Amounts in thousands)	As of December 31, 2016
	Total		Level 1		Level 2		Level 3
Marketable securities	$	203,704	$	203,704	$	—	$	—
Real estate fund investments	462,132		—		—		462,132
Deferred compensation plan assets ($4,187 included in restricted cash and $117,187 in other assets)	121,374		63,930		—		57,444
Interest rate swaps (included in other assets)	21,816		—		21,816		—
Total assets	$	809,026	$	267,634	$	21,816	$	519,576

Mandatorily redeemable instruments (included in other liabilities)	$	50,561	$	50,561	$	—	$	—
Interest rate swaps (included in other liabilities)	10,122		—		10,122		—
Total liabilities	$	60,683	$	50,561	$	10,122	$	—


12.	Fair Value Measurements –

Schedule of carrying amounts and fair values of financial instruments

The table below summarizes the carrying amounts and fair value of these financial instruments as of December 31, 2017 and 2016.



(Amounts in thousands)	As of December 31, 2017					As of December 31, 2016
	Carrying Amount			Fair Value		Carrying Amount			Fair Value
Cash equivalents	$	1,500,227		$	1,500,000	$	1,307,105		$	1,307,000
Debt:
Mortgages payable	$	8,203,839		$	8,194,000	$	8,206,680		$	8,163,000
Senior unsecured notes	850,000			878,000		850,000			899,000
Unsecured term loan	750,000			750,000		375,000			375,000
Unsecured revolving credit facilities	—			—		115,630			116,000
Total	$	9,803,839	⁽¹⁾	$	9,822,000	$	9,547,310	⁽¹⁾	$	9,553,000

Real estate fund investments

Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation

Fair value inputs quantitative information

Significant unobservable quantitative inputs in the table below were utilized in determining the fair value of these real estate fund investments at December 31, 2017 and 2016.



	Range		Weighted Average (based on fair value of investments)
Unobservable Quantitative Input	December 31, 2017	December 31, 2016	December 31, 2017	December 31, 2016
Discount rates	2.0% to 14.9%	10.0% to 14.9%	11.9%	12.6%
Terminal capitalization rates	4.7% to 6.7%	4.3% to 5.8%	5.5%	5.3%

Summary of changes in level 3 plan assets

The table below summarizes the changes in the fair value of real estate fund investments that are classified as Level 3, for the years ended December 31, 2017 and 2016.



(Amounts in thousands)	For the Year Ended December 31,
	2017			2016
Beginning balance	$	462,132		$	574,761
Dispositions/distributions	(91,606		)	(71,888		)
Net unrealized loss on held investments	(25,807		)	(41,162		)
Net realized gains on exited investments	36,078			14,761
Previously recorded unrealized gains on exited investments	(25,538		)	(14,254		)
Other, net	(455		)	(86		)
Ending balance	$	354,804		$	462,132

Deferred Compensation Plan Assets

Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation

Schedule of carrying amounts and fair values of financial instruments

The table below summarizes the changes in the fair value of deferred compensation plan assets that are classified as Level 3, for the years ended December 31, 2017 and 2016.



(Amounts in thousands)	For the Year Ended December 31,
	2017			2016
Beginning balance	$	57,444		$	59,186
Purchases	5,786			5,355
Sales	(27,715		)	(9,354		)
Realized and unrealized gains	2,519			344
Other, net	2,094			1,913
Ending balance	$	40,128		$	57,444

Stock-based Compensation (Tables)

12 Months Ended

Dec. 31, 2017

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Schedule Of Share Based Compensation Restricted Operating Partnership Units Earned

Below is the summary of the OPP units granted during the years December 31, 2017, 2016 and 2015.



Plan Year	Total Plan Notional Amount		Percentage of Notional Amount Granted		Grant Date Fair Value⁽¹⁾		OPP Units Earned
2017	$	35,000,000	86.6	%	$	10,800,000	To be determined in 2020
2016	40,000,000		86.7	%	11,800,000		To be determined in 2019
2015	40,000,000		84.5	%	9,120,000		Not earned

________________________________________

(1)

Schedule Of Share Based Compensation Stock Options Activity

Below is a summary of Vornado’s stock option activity for the year ended December 31, 2017.



	Shares		Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Term	Aggregate Intrinsic Value
Outstanding at January 1, 2017	3,322,069		$	49.81
Granted	29,867		85.78
Exercised	(449,386	)	62.89
Cancelled or expired	(78,650	)	102.96
Outstanding at December 31, 2017	2,823,900		$	46.62	2.2	$	89,382,838
Options vested and expected to vest at December 31, 2017	2,881,202		$	46.98	2.2	$	90,218,230
Options exercisable at December 31, 2017	2,762,728		$	45.86	2.1	$	89,274,127

Schedule Of Share Based Payment Award Stock Options Valuation Assumptions



	December 31,
	2017	2016	2015
Expected volatility	35%	35%	35%
Expected life	5.0 years	5.0 years	5.0 years
Risk free interest rate	1.95%	1.76%	1.56%
Expected dividend yield	3.0%	3.2%	3.3%

Schedule Of Share Based Compensation Restricted Stock And Restricted Stock Units Activity

Below is a summary of Vornado’s restricted stock activity under the Plan for the year ended December 31, 2017.



Unvested Shares	Shares		Weighted-Average Grant-Date Fair Value
Unvested at January 1, 2017	23,597		$	55.03
Granted	7,419		81.06
Vested	(14,662	)	43.97
Cancelled or expired	(1,509	)	34.42
Unvested at December 31, 2017	14,845		81.05

Schedule Of Share Based Compensation Restricted Operating Partnership Units Activity

Below is a summary of restricted OP unit activity under the Plan for the year ended December 31, 2017.



Unvested Units	Units		Weighted-Average Grant-Date Fair Value
Unvested at January 1, 2017	627,709		$	70.11
Granted	312,554		79.75
Vested	(309,030	)	67.64
Cancelled or expired	(2,271	)	68.16
Unvested at December 31, 2017	628,962		76.13

Fee and Other Income (Tables)

12 Months Ended

Dec. 31, 2017

Fee and Other Income [Abstract]

Fee and Other Income

The following table sets forth the details of fee and other income:



(Amounts in thousands)	For the Year Ended December 31,
	2017		2016		2015
BMS cleaning fees	$	104,143	$	93,425	$	96,880
Management and leasing fees	10,087		8,243		6,288
Lease termination fees⁽¹⁾	8,171		8,770		23,369
Other income	13,349		9,648		13,353
	$	135,750	$	120,086	$	139,890

________________________________________


(1)	2015 includes $15,000 related to the New York Stock Exchange lease termination at 20 Broad Street.

Interest and Other Investment Income, Net (Tables)

12 Months Ended

Dec. 31, 2017

Interest and Other Income [Abstract]

Schedule of interest and other investment income (loss), net

The following table sets forth the details of our interest and other investment income, net:



(Amounts in thousands)	For the Year Ended December 31,
	2017		2016		2015
Dividends on marketable securities	$	13,276	$	13,135	$	12,836
Mark-to-market income of investments in our deferred compensation plan⁽¹⁾	6,932		5,213		111
Interest on loans receivable	4,352		3,890		6,371
Other, net	13,233		7,310		7,922
	$	37,793	$	29,548	$	27,240

________________________________________


(1)	This income is entirely offset by the expense resulting from the mark-to-market of the deferred compensation plan liability, which is included in "general and administrative" expense.

Interest and Debt Expense (Tables)

12 Months Ended

Dec. 31, 2017

Interest and Debt Expense [Abstract]

Interest And Debt Expense

The following table sets forth the details of interest and debt expense.



(Amounts in thousands)	For the Year Ended December 31,
	2017			2016			2015
Interest expense	$	359,819		$	328,398		$	333,388
Amortization of deferred financing costs	34,066			32,185			29,335
Capitalized interest and debt expense	(48,231		)	(30,343		)	(53,425		)
	$	345,654		$	330,240		$	309,298

Income Per Share / Income Per Class A Unit (Tables)

12 Months Ended

Dec. 31, 2017

Schedule of Earnings Per Share Basic and Diluted

Vornado Realty Trust



(Amounts in thousands, except per share amounts)	Year Ended December 31,
	2017			2016			2015
Numerator:
Income from continuing operations, net of income attributable to noncontrolling interests	$	239,824		$	526,686		$	550,240
(Loss) income from discontinued operations, net of income attributable to noncontrolling interest	(12,408		)	380,231			210,194
Net income attributable to Vornado	227,416			906,917			760,434
Preferred share dividends	(65,399		)	(75,903		)	(80,578		)
Preferred share issuance costs (Series J redemption)	—			(7,408		)	—
Net income attributable to common shareholders	162,017			823,606			679,856
Earnings allocated to unvested participating securities	(46		)	(96		)	(81		)
Numerator for basic income per share	161,971			823,510			679,775
Impact of assumed conversions:
Earnings allocated to Out-Performance Plan units	230			806			—
Convertible preferred share dividends	—			86			91
Numerator for diluted income per share	$	162,201		$	824,402		$	679,866

Denominator:
Denominator for basic income per share – weighted average shares	189,526			188,837			188,353
Effect of dilutive securities ⁽¹⁾:
Employee stock options and restricted share awards	1,448			1,064			1,166
Out-Performance Plan units	284			230			—
Convertible preferred shares	—			42			45
Denominator for diluted income per share – weighted average shares and assumed conversations	191,258			190,173			189,564

INCOME PER COMMON SHARE – BASIC:
Income from continuing operations, net	$	0.92		$	2.35		$	2.49
(Loss) income from discontinued operations, net	(0.07		)	2.01			1.12
Net income per common share	$	0.85		$	4.36		$	3.61

INCOME PER COMMON SHARE – DILUTED:
Income from continuing operations, net	$	0.91		$	2.34		$	2.48
(Loss) income from discontinued operations, net	(0.06		)	2.00			1.11
Net income per common share	$	0.85		$	4.34		$	3.59

________________________________________


(1)	The effect of dilutive securities in the years ended December 31, 2017, 2016 and 2015 excludes an aggregate of 12,165, 12,022 and 11,744 weighted average common share equivalents, respectively, as their effect was anti-dilutive.

Schedule of Earnings Per Share Basic and Diluted

Vornado Realty L.P.



(Amounts in thousands, except per unit amounts)	Year Ended December 31,
	2017			2016			2015
Numerator:
Income from continuing operations, net of income attributable to noncontrolling interests	$	251,554		$	555,659		$	580,154
(Loss) income from discontinued operations	(13,228		)	404,912			223,511
Net income attributable to Vornado Realty L.P.	238,326			960,571			803,665
Preferred unit distributions	(65,593		)	(76,097		)	(80,736		)
Preferred unit issuance costs (Series J redemption)	—			(7,408		)	—
Net income attributable to Class A unitholders	172,733			877,066			722,929
Earnings allocated to unvested participating securities	(3,232		)	(4,177		)	(4,092		)
Numerator for basic income per Class A unit	169,501			872,889			718,837
Impact of assumed conversions:
Convertible preferred unit distributions	—			86			92
Numerator for diluted income per Class A unit	$	169,501		$	872,975		$	718,929

Denominator:
Denominator for basic income per Class A unit – weighted average units	201,214			200,350			199,309
Effect of dilutive securities ⁽¹⁾:
Vornado stock options and restricted unit awards	2,086			1,625			1,804
Convertible preferred units	—			42			45
Denominator for diluted income per Class A unit – weighted average units and assumed conversations	203,300			202,017			201,158

INCOME PER CLASS A UNIT – BASIC:
Income from continuing operations, net	$	0.91		$	2.34		$	2.49
(Loss) income from discontinued operations, net	(0.07		)	2.02			1.12
Net income per Class A unit	0.84			4.36			3.61

INCOME PER CLASS A UNIT – DILUTED:
Income from continuing operations, net	$	0.90		$	2.32		$	2.46
(Loss) income from discontinued operations, net	(0.07		)	2.00			1.11
Net income per Class A unit	$	0.83		$	4.32		$	3.57

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(1)	The effect of dilutive securities in the years ended December 31, 2017, 2016 and 2015 excludes an aggregate of 124, 178 and 150 weighted average Class A unit equivalents, respectively, as their effect was anti-dilutive.

Leases (Tables)

12 Months Ended

Dec. 31, 2017

Leases [Abstract]

Schedule Of Future Base Rental

As of December 31, 2017, future base rental revenue under non-cancelable operating leases, excluding rents for leases with an original term of less than one year and rents resulting from the exercise of renewal options, are as follows:



(Amounts in thousands)
Year Ending December 31:
2018	$	1,469,201
2019	1,441,139
2020	1,369,636
2021	1,298,798
2022	1,230,172
Thereafter	5,841,213

Schedule Of Future Minimum Rental Payments For Operating Leases

Future minimum lease payments under operating leases at December 31, 2017 are as follows:



(Amounts in thousands)
Year Ending December 31:
2018	$	33,703
2019	34,301
2020	34,779
2021	35,295
2022	36,319
Thereafter	1,113,171

Schedule Of Future Minimum Lease Payments For Capital Leases

As of December 31, 2017, future minimum lease payments under this capital lease are as follows:



(Amounts in thousands)
Year Ending December 31:
2018	$	13,508
2019	12,508
2020	12,508
2021	12,508
2022	12,508
Thereafter	297,330
Total minimum obligations	360,870
Interest portion	(120,870		)
Present value of net minimum payments	$	240,000

Summary of Quarterly Results (Unaudited) (Tables)

12 Months Ended

Dec. 31, 2017

Schedule Of Quarterly Financial Information

The following summary represents the results of operations for each quarter in 2017 and 2016:



(Amounts in thousands, except per share amounts)			Net Income (Loss) Attributable to Common Shareholders ⁽¹⁾			Net Income (Loss) Per Common Share ⁽²⁾
	Revenues		Net Income (Loss) Attributable to Common Shareholders ⁽¹⁾			Basic			Diluted
2017
December 31	$	536,226	$	27,319		$	0.14		$	0.14
September 30	528,755		(29,026		)	(0.15		)	(0.15		)
June 30	511,087		115,972			0.61			0.61
March 31	508,058		47,752			0.25			0.25

2016
December 31	$	513,974	$	651,181		$	3.44		$	3.43
September 30	502,753		66,125			0.35			0.35
June 30	498,098		220,463			1.17			1.16
March 31	488,917		(114,163		)	(0.61		)	(0.61		)

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(1)	Fluctuations among quarters resulted primarily from non-cash impairment losses, net gains on extinguishment of debt, net gains on sale of real estate and other items and from seasonality of business operations.


(2)	The total for the year may differ from the sum of the quarters as a result of weighting.