Document

 
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
 
FORM 8-K
 
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
 
Date of Report (Date of earliest event reported):
February 12, 2018
 
VORNADO REALTY TRUST
(Exact Name of Registrant as Specified in Charter)
Maryland
 
No. 001-11954
 
No. 22-1657560
(State or Other
 
(Commission
 
(IRS Employer
Jurisdiction of Incorporation)
 
File Number)
 
Identification No.)
VORNADO REALTY L.P.
(Exact Name of Registrant as Specified in Charter)
Delaware
 
No. 001-34482
 
No. 13-3925979
(State or Other
 
(Commission
 
(IRS Employer
Jurisdiction of Incorporation)
 
File Number)
 
Identification No.)
 
888 Seventh Avenue
New York, New York
 
10019
(Address of Principal Executive offices)
 
(Zip Code)
 
Registrant’s telephone number, including area code: (212) 894-7000
Former name or former address, if changed since last report: N/A
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instructions A.2.):
o
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
o
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company o
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o 
 




­Item 2.02.        Results of Operations and Financial Condition.
On February 12, 2018, Vornado Realty Trust (the “Company”), the general partner of Vornado Realty L.P., issued a press release announcing its financial results for the fourth quarter of 2017.  That press release referred to certain supplemental financial information that is available on the Company’s website.  That press release and the supplemental financial information are attached to this Current Report on Form 8-K as Exhibits 99.1 and 99.2, respectively, and are incorporated by reference herein.
Exhibits 99.1 and 99.2 hereto shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the Exchange Act), or otherwise subject to the liabilities under that Section and shall not be deemed to be incorporated by reference into any filing of the Company or Vornado Realty L.P. under the Securities Act of 1933, as amended, or the Exchange Act.
Item 9.01. Financial Statements and Exhibits.
(d)
Exhibits.
The following exhibits are being furnished as part of this Current Report on Form 8-K:
 
Vornado Realty Trust press release dated February 12, 2018
 
Vornado Realty Trust supplemental operating and financial data for the quarter ended December 31, 2017



2



SIGNATURE 
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 
VORNADO REALTY TRUST
 
 
(Registrant)
 
 
 
 
 
 
By:
/s/ Matthew Iocco
 
 
Name:
Matthew Iocco
 
 
Title:
Chief Accounting Officer (duly
authorized officer and principal accounting officer)
 
 
Date: February 13, 2018
 
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 
VORNADO REALTY L.P.
 
 
(Registrant)
 
 
By:
VORNADO REALTY TRUST,
 
 
 
Sole General Partner
 
 
 
 
 
 
By:
/s/ Matthew Iocco
 
 
Name:
Matthew Iocco
 
 
Title:
Chief Accounting Officer of Vornado
Realty Trust, sole General Partner of Vornado Realty
L.P. (duly authorized officer and principal accounting
officer)
 
 
Date: February 13, 2018


3
Exhibit

EXHIBIT 99.1

EXEEXHIBIT 99.1
 
CONTACT:
JOSEPH MACNOW
 
https://cdn.kscope.io/d83f209fa0c1cf984946656b60e89cf3-vornado1.jpg 
 
 
(212) 894-7000
 
 
 
 
 
 
 
 
 
 
 
 
 
888 Seventh Avenue
New York, NY 10019
 

FOR IMMEDIATE RELEASE – February 12, 2018
Vornado Announces Fourth Quarter 2017 Financial Results
NEW YORK.......VORNADO REALTY TRUST (NYSE: VNO) filed its Form 10-K for the year ended December 31, 2017 today and reported its financial results below. The financial results treat as "discontinued operations" the Company's former Washington, DC segment, which was spun off to shareholders on July 17, 2017.
Quarter Ended December 31, 2017 Financial Results
NET INCOME attributable to common shareholders for the quarter ended December 31, 2017 was $27.3 million, or $0.14 per diluted share, compared to $651.2 million, or $3.43 per diluted share, for the prior year's quarter. Adjusting net income attributable to common shareholders (non-GAAP) for the items listed in the table on the following page, net income attributable to common shareholders for the quarters ended December 31, 2017 and 2016 was $65.5 million and $77.8 million, or $0.34 and $0.41 per diluted share, respectively.

FUNDS FROM OPERATIONS attributable to common shareholders plus assumed conversions (non-GAAP) ("FFO") for the quarter ended December 31, 2017 was $153.2 million, or $0.80 per diluted share, compared to $797.7 million, or $4.20 per diluted share, for the prior year's quarter.  Adjusting FFO for the items listed in the table on page 3, FFO for the quarters ended December 31, 2017 and 2016 was $187.6 million and $193.2 million, or $0.98 and $1.02 per diluted share, respectively.

Year Ended December 31, 2017 Financial Results
NET INCOME attributable to common shareholders for the year ended December 31, 2017 was $162.0 million, or $0.85 per diluted share, compared to $823.6 million, or $4.34 per diluted share, for the prior year.  Adjusting net income attributable to common shareholders (non-GAAP) for the items listed in the table on the following page, net income attributable to common shareholders for the years ended December 31, 2017 and 2016 was $251.0 million and $229.2 million, or $1.31 and $1.21 per diluted share, respectively.

FFO (non-GAAP) for the year ended December 31, 2017 was $717.8 million, or $3.75 per diluted share, compared to $1,457.6 million, or $7.66 per diluted share, for the prior year.  Adjusting FFO for the items listed in the table on page 3, FFO for the years ended December 31, 2017 and 2016 was $713.8 million and $683.4 million, or $3.73 and $3.59 per diluted share, respectively.

Supplemental Financial Information
Further details regarding results of operations, properties and tenants can be accessed at the Company's website www.vno.com.  Vornado Realty Trust is a fully – integrated equity real estate investment trust.
Certain statements contained herein may constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995.  Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements.  For a discussion of factors that could materially affect the outcome of our forward-looking statements and our future results and financial condition, see "Risk Factors" in Part I, Item 1A, of our Annual Report on Form 10-K for the year ended December 31, 2017.  Such factors include, among others, risks associated with the timing of and costs associated with property improvements, financing commitments and general competitive factors.

(tables to follow)

1


The following table reconciles our net income attributable to common shareholders to net income attributable to common shareholders, as adjusted (non-GAAP):
(Amounts in thousands, except per share amounts)
For the Quarters Ended
December 31,
 
For the Years Ended
December 31,
 
2017
 
2016
 
2017
 
2016
Net income attributable to common shareholders
$
27,319

 
$
651,181

 
$
162,017

 
$
823,606

Per diluted share
$
0.14

 
$
3.43

 
$
0.85

 
$
4.34

 
 
 
 
 
 
 
 
Certain items that impact net income attributable to common shareholders:
 
 
 
 
 
 
 
JBG SMITH Properties which is treated as a discontinued operation:
 
 
 
 
 
 
 
Transaction costs
$
(1,617
)
 
$
(11,989
)
 
$
(68,662
)
 
$
(16,586
)
Operating results through July 17, 2017 spin-off

 
20,523

 
47,752

 
87,237

 
(1,617
)
 
8,534

 
(20,910
)
 
70,651

 
 
 
 
 
 
 
 
Tax expense related to the reduction of our taxable REIT subsidiaries deferred tax assets
(34,800
)
 

 
(34,800
)
 

Expense related to the prepayment of our 2.50% senior unsecured notes due 2019
(4,836
)
 

 
(4,836
)
 

666 Fifth Avenue Office Condominium (49.5% interest)
(3,042
)
 
(7,869
)
 
(25,414
)
 
(41,532
)
Income (loss) from real estate fund investments, net
529

 
(34,704
)
 
(10,804
)
 
(21,042
)
Net gain on extinguishment of Skyline properties debt

 
487,877

 

 
487,877

Income from the repayment of our investments in 85 Tenth Avenue loans and preferred equity

 
160,843

 

 
160,843

Net gain on sale on our 20% interest in Fairfax Square

 
15,302

 

 
15,302

Our share of impairment on India non-depreciable real estate

 
(13,962
)
 

 
(13,962
)
Default interest on Skyline properties mortgage loan

 
(2,480
)
 

 
(7,823
)
Impairment loss on our investment in Pennsylvania REIT

 

 
(44,465
)
 

Net gain resulting from Urban Edge Properties operating partnership unit issuances

 

 
21,100

 

Our share of net gain on sale of property of Suffolk Downs JV

 

 
15,314

 

Net gain on repayment of Suffolk Downs JV debt investments

 

 
11,373

 

Our share of write-off of deferred financing costs

 

 
(3,819
)
 

Skyline properties impairment loss

 

 

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

 

 

 
159,511

Preferred share issuance costs (Series J redemption)

 

 

 
(7,408
)
Other
3,084

 
(2,942
)
 
2,060

 
(8,298
)
 
(40,682
)
 
610,599

 
(95,201
)
 
633,419

Noncontrolling interests' share of above adjustments
2,522

 
(37,185
)
 
6,267

 
(38,972
)
Total of certain items that impact net income attributable to common shareholders, net
$
(38,160
)
 
$
573,414

 
$
(88,934
)
 
$
594,447

 
 
 
 
 
 
 
 
Net income attributable to common shareholders, as adjusted (non-GAAP)
$
65,479

 
$
77,767

 
$
250,951

 
$
229,159

Per diluted share (non-GAAP)
$
0.34

 
$
0.41

 
$
1.31

 
$
1.21





2


The following table reconciles our FFO (non-GAAP) to FFO, as adjusted (non-GAAP):
(Amounts in thousands, except per share amounts)
For the Quarters Ended
December 31,
 
For the Years Ended
December 31,
 
2017
 
2016
 
2017
 
2016
FFO (non-GAAP) (1)
$
153,151

 
$
797,734

 
$
717,805

 
$
1,457,583

Per diluted share (non-GAAP)
$
0.80

 
$
4.20

 
$
3.75

 
$
7.66

 
 
 
 
 
 
 
 
Certain items that impact FFO:
 
 
 
 
 
 
 
JBG SMITH Properties which is treated as a discontinued operation:
 
 
 
 
 
 
 
Transaction costs
$
(1,617
)
 
$
(11,989
)
 
$
(68,662
)
 
$
(16,586
)
Operating results through July 17, 2017 spin-off

 
57,147

 
122,201

 
226,288

 
(1,617
)
 
45,158

 
53,539

 
209,702

 
 
 
 
 
 
 
 
Tax expense related to the reduction of our taxable REIT subsidiaries deferred tax assets
(34,800
)
 

 
(34,800
)
 

Expense related to the prepayment of our 2.50% senior unsecured notes due 2019
(4,836
)
 

 
(4,836
)
 

666 Fifth Avenue Office Condominium (49.5% interest)
1,103

 
808

 
13,164

 
10,925

Income (loss) from real estate fund investments, net
529

 
(34,704
)
 
(10,804
)
 
(21,042
)
Net gain on extinguishment of Skyline properties debt

 
487,877

 

 
487,877

Income from the repayment of our investments in 85 Tenth Avenue loans and preferred equity

 
160,843

 

 
160,843

Our share of impairment on India non-depreciable real estate

 
(13,962
)
 

 
(13,962
)
Impairment loss on our investment in Pennsylvania REIT

 

 
(44,465
)
 

Net gain resulting from Urban Edge Properties operating partnership unit issuances

 

 
21,100

 

Net gain on repayment of our Suffolk Downs JV debt investments

 

 
11,373

 

Our share of write-off of deferred financing costs

 

 
(3,819
)
 

Preferred share issuance costs (Series J redemption)

 

 

 
(7,408
)
Other
2,945

 
(2,324
)
 
3,801

 
(2,454
)
 
(36,676
)
 
643,696

 
4,253

 
824,481

Noncontrolling interests' share of above adjustments
2,274

 
(39,201
)
 
(264
)
 
(50,293
)
Total of certain items that impact FFO, net
$
(34,402
)
 
$
604,495

 
$
3,989

 
$
774,188

 
 
 
 
 
 
 
 
FFO, as adjusted (non-GAAP)
$
187,553

 
$
193,239

 
$
713,816

 
$
683,395

Per diluted share (non-GAAP)
$
0.98

 
$
1.02

 
$
3.73

 
$
3.59

____________________________________________________________
(1)
See page 5 for a reconciliation of our net income attributable to common shareholders to FFO (non-GAAP) for the quarters and years ended December 31, 2017 and 2016.



3


VORNADO REALTY TRUST
OPERATING RESULTS FOR THE QUARTERS AND YEARS ENDED
DECEMBER 31, 2017 AND 2016

(Amounts in thousands, except per share amounts)
For the Quarters Ended
December 31,
 
For the Years Ended
December 31,
 
2017
 
2016
 
2017
 
2016
Revenues
$
536,226

 
$
513,974

 
$
2,084,126

 
$
2,003,742

 
 
 
 
 
 
 
 
Income from continuing operations
$
52,278

 
$
195,428

 
$
277,356

 
$
577,010

Income (loss) from discontinued operations
1,273

 
509,116

 
(13,228
)
 
404,912

Net income
53,551

 
704,544

 
264,128

 
981,922

Less net (income) loss attributable to noncontrolling interests in:
 
 
 
 
 
 
 
Consolidated subsidiaries
(7,366
)
 
5,010

 
(25,802
)
 
(21,351
)
Operating Partnership
(1,853
)
 
(42,244
)
 
(10,910
)
 
(53,654
)
Net income attributable to Vornado
44,332

 
667,310

 
227,416

 
906,917

Preferred share dividends
(17,013
)
 
(16,129
)
 
(65,399
)
 
(75,903
)
Preferred share issuance costs (Series J redemption)

 

 

 
(7,408
)
Net income attributable to common shareholders
$
27,319

 
$
651,181

 
$
162,017

 
$
823,606

 
 
 
 
 
 
 
 
Income per common share - Basic:
 
 
 
 
 
 
 
Income from continuing operations, net
$
0.14

 
$
0.91

 
$
0.92

 
$
2.35

Income (loss) from discontinued operations, net

 
2.53

 
(0.07
)
 
2.01

Net income per common share
$
0.14

 
$
3.44

 
$
0.85

 
$
4.36

Weighted average shares outstanding
189,898

 
189,013

 
189,526

 
188,837

 
 
 
 
 
 
 
 
Income per common share - Diluted:
 
 
 
 
 
 
 
Income from continuing operations, net
$
0.14

 
$
0.91

 
$
0.91

 
$
2.34

Income (loss) from discontinued operations, net

 
2.52

 
(0.06
)
 
2.00

Net income per common share
$
0.14

 
$
3.43

 
$
0.85

 
$
4.34

Weighted average shares outstanding
191,020

 
190,108

 
191,258

 
190,173

 
 
 
 
 
 
 
 
FFO (non-GAAP)
$
153,151

 
$
797,734

 
$
717,805

 
$
1,457,583

Per diluted share (non-GAAP)
$
0.80

 
$
4.20

 
$
3.75

 
$
7.66

 
 
 
 
 
 
 
 
FFO, as adjusted (non-GAAP)
$
187,553

 
$
193,239

 
$
713,816

 
$
683,395

Per diluted share (non-GAAP)
$
0.98

 
$
1.02

 
$
3.73

 
$
3.59

 
 
 
 
 
 
 
 
Weighted average shares used in determining FFO per diluted share
191,063

 
190,108

 
191,304

 
190,173







4


The following table reconciles net income attributable to common shareholders to FFO (non-GAAP):
(Amounts in thousands, except per share amounts)
For the Quarters Ended
December 31,
 
For the Years Ended
December 31,
 
2017
 
2016
 
2017
 
2016
Net income attributable to common shareholders
$
27,319

 
$
651,181

 
$
162,017

 
$
823,606

Per diluted share
$
0.14

 
$
3.43

 
$
0.85

 
$
4.34

 
 
 
 
 
 
 
 
FFO adjustments:
 

 
 

 
 
 
 
Depreciation and amortization of real property
$
106,017

 
$
133,389

 
$
467,966

 
$
531,620

Net gains on sale of real estate
308

 
(15,302
)
 
(3,489
)
 
(177,023
)
Real estate impairment losses

 

 

 
160,700

Proportionate share of adjustments to equity in net income of partially owned entities to arrive at FFO:
 
 
 
 
 
 
 
Depreciation and amortization of real property
28,247

 
37,160

 
137,000

 
154,795

Net gains on sale of real estate
(593
)
 
(12
)
 
(17,777
)
 
(2,853
)
Real estate impairment losses
145

 
792

 
7,692

 
6,328

 
134,124

 
156,027

 
591,392

 
673,567

Noncontrolling interests' share of above adjustments
(8,310
)
 
(9,495
)
 
(36,728
)
 
(41,267
)
FFO adjustments, net
$
125,814

 
$
146,532

 
$
554,664

 
$
632,300

 
 
 
 
 
 
 
 
FFO attributable to common shareholders (non-GAAP)
$
153,133

 
$
797,713

 
$
716,681

 
$
1,455,906

Convertible preferred share dividends
18

 
21

 
77

 
86

Earnings allocated to Out-Performance Plan units

 

 
1,047

 
1,591

FFO attributable to common shareholders plus assumed conversions
      (non-GAAP)
$
153,151

 
$
797,734

 
$
717,805

 
$
1,457,583

Per diluted share (non-GAAP)
$
0.80

 
$
4.20

 
$
3.75

 
$
7.66

FFO is computed in accordance with the definition adopted by the Board of Governors of the National Association of Real Estate Investment Trusts ("NAREIT"). NAREIT defines FFO as GAAP net income or loss adjusted to exclude net gains from sales of depreciated real estate assets, real estate impairment losses, depreciation and amortization expense from real estate assets and other specified non-cash items, including the pro rata share of such adjustments of unconsolidated subsidiaries.  FFO and FFO per diluted share are non-GAAP financial measures used by management, investors and analysts to facilitate meaningful comparisons of operating performance between periods and among our peers because it excludes the effect of real estate depreciation and amortization and net gains on sales, which are based on historical costs and implicitly assume that the value of real estate diminishes predictably over time, rather than fluctuating based on existing market conditions.  FFO does not represent cash generated from operating activities and is not necessarily indicative of cash available to fund cash requirements and should not be considered as an alternative to net income as a performance measure or cash flow as a liquidity measure.  FFO may not be comparable to similarly titled measures employed by other companies.  A reconciliation of our net income to FFO is provided above.  In addition to FFO, we also disclose FFO, as adjusted.  Although this non-GAAP measure clearly differs from NAREIT's definition of FFO, we believe it provides a meaningful presentation of operating performance.  Reconciliations of FFO to FFO, as adjusted are provided on page 3 of this press release.
Conference Call and Audio Webcast
As previously announced, the Company will host a quarterly earnings conference call and an audio webcast on Tuesday, February 13, 2018 at 10:00 a.m. Eastern Time (ET).  The conference call can be accessed by dialing 800-708-4540 (domestic) or 847-619-6397 (international) and indicating to the operator the passcode 46251598.  A telephonic replay of the conference call will be available from 1:00 p.m. ET on February 13, 2018 through March 15, 2018.  To access the replay, please dial 888-843-7419 and enter the passcode 46251598#.  A live webcast of the conference call will be available on the Company's website at www.vno.com and an online playback of the webcast will be available on the website for 90 days following the conference call. 
####

5
Exhibit


EXHIBIT 99.2


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SUPPLEMENTAL OPERATING
AND FINANCIAL DATA
For the Year Ended December 31, 2017

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

Certain statements contained herein constitute forward-looking statements as such term is defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended.  Forward-looking statements are not guarantees of performance.  They represent our intentions, plans, expectations and beliefs and are subject to numerous assumptions, risks and uncertainties.  Our future results, financial condition and business may differ materially from those expressed in these forward-looking statements. You can find many of these statements by looking for words such as "approximates," "believes," "expects," "anticipates," "estimates," "intends," "plans," "would," "may" or other similar expressions in this supplemental package.  We also note the following forward-looking statements: in the case of our development and redevelopment projects, the estimated completion date, estimated project cost and cost to complete; and estimates of future capital expenditures, dividends to common and preferred shareholders and operating partnership distributions. Many of the factors that will determine the outcome of these and our other forward-looking statements are beyond our ability to control or predict.  For further discussion of factors that could materially affect the outcome of our forward-looking statements, see "Item 1A. Risk Factors" in our Annual Report on Form 10-K for the year ended December 31, 2017. For these statements, we claim the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. You are cautioned not to place undue reliance on our forward-looking statements, which speak only as of the date of this supplemental package.  All subsequent written and oral forward-looking statements attributable to us or any person acting on our behalf are expressly qualified in their entirety by the cautionary statements contained or referred to in this section. We do not undertake any obligation to release publicly any revisions to our forward-looking statements to reflect events or circumstances occurring after the date of our Annual Report on Form 10-K, or Quarterly Report on Form 10-Q, as applicable, and this supplemental package.


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FINANCIAL SUPPLEMENT DEFINITIONS
The financial supplement includes various non-GAAP financial measures.  Descriptions of these non-GAAP measures are provided below. Reconciliations of these non-GAAP measures to the most directly comparable GAAP measures are provided in Appendix: Non-GAAP Reconciliations.
Net Operating Income ("NOI") - 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. We calculate NOI on an Operating Partnership basis which is before allocation to the noncontrolling interest of the Operating Partnership.
Funds From Operations ("FFO") - FFO is computed in accordance with the definition adopted by the Board of Governors of the National Association of Real Estate Investment Trusts ("NAREIT").  NAREIT defines FFO as GAAP net income or loss adjusted to exclude net gains from sales of depreciated real estate assets, real estate impairment losses, depreciation and amortization expense from real estate assets and other specified non-cash items, including the pro rata share of such adjustments of unconsolidated subsidiaries.  FFO and FFO per diluted share are non-GAAP financial measures used by management, investors and analysts to facilitate meaningful comparisons of operating performance between periods and among our peers because it excludes the effect of real estate depreciation and amortization and net gains on sales, which are based on historical costs and implicitly assume that the value of real estate diminishes predictably over time, rather than fluctuating based on existing market conditions.  FFO does not represent cash generated from operating activities and is not necessarily indicative of cash available to fund cash requirements and should not be considered as an alternative to net income as a performance measure or cash flow as a liquidity measure.  FFO may not be comparable to similarly titled measures employed by other companies.
Funds Available For Distribution ("FAD") - FAD is defined as FFO less (i) cash basis recurring tenant improvements, leasing commissions and capital expenditures, (ii) straight-line rents and amortization of acquired below-market leases, net, and (iii) other non-cash income, plus (iv) other non-cash charges.  FAD is a non-GAAP financial measure that is not intended to represent cash flow and is not indicative of cash flow provided by operating activities as determined in accordance with GAAP. FAD is presented solely as a supplemental disclosure that management believes provides useful information regarding the Company's ability to fund its dividends.
Net Asset Value ("NAV") - Net Asset Value ("NAV") means the sum of the estimated values of our New York Office, New York Retail, New York Residential, theMART and 555 California Street assets, calculated by dividing pro forma 2017 cash basis NOI by the Cap Rate applicable to each group, plus other estimated asset values minus liabilities as of December 31, 2017. “NAV per share” means NAV divided by the number of Vornado common shares outstanding on an OP basis as of December 31, 2017. NAV may not be equivalent to enterprise value, and NAV per share may not be equivalent to an appropriate trading price for Vornado common shares. NAV per share is not a representation or guarantee that our common shares will or should trade at this amount, that a shareholder would be able to realize this amount in selling our common shares, that a third party would offer the estimated NAV per share in an offer to purchase all or substantially all of our common shares, that we would actually receive the estimated NAV for the applicable asset or assets upon a sale of those assets, or that a shareholder would receive distributions per share equal to the estimated NAV per share upon sale or liquidation. Investors should not rely on the NAV per share as being an accurate measure of the fair market value of our common shares.
The terms NAV and NAV per share may not be comparable to similar measures presented by others. We consider NAV and NAV per share to be useful supplemental measures which assist both management and investors in estimating the fair value of Vornado. The calculation of NAV and NAV per share involves significant estimates and can be made using various methods. Each individual investor should review our calculation of NAV and NAV per share and make its own determination as to whether the methodology, assumptions and estimates we used to arrive at NAV and NAV per share are appropriate, or whether such investor should use an alternative methodology to perform its own calculations.


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INVESTOR INFORMATION
 
 
 
 
 
 
Executive Officers:
 
 
 
 
 
Steven Roth
 
Chairman of the Board and Chief Executive Officer
 
 
David R. Greenbaum
 
President - New York Division
 
 
Michael J. Franco
 
Executive Vice President - Chief Investment Officer
 
 
Joseph Macnow
 
Executive Vice President - Chief Financial Officer and Chief Administrative Officer
 
 
 
 
 
 
 
RESEARCH COVERAGE - EQUITY
 
 
 
 
 
 
James Feldman/Kimberly Hong
Jed Reagan/Daniel Ismail
 
Michael Lewis
Bank of America/Merrill Lynch
Green Street Advisors
 
SunTrust Robinson Humphrey
646-855-5808/646-556-3329
949-640-8780
 
212-319-5659
 
 
 
 
 
 
Ross Smotrich/Trevor Young
Anthony Paolone
 
Nick Yulico/Frank Lee
Barclays Capital
JP Morgan
 
UBS
212-526-2306/212-526-3098
212-622-6682
 
212-713-3402/415-352-5679
 
 
 
 
 
 
Michael Bilerman/Emmanuel Korchman
Vikram Malhotra/Nicholas Stelzner
 
 
Citi
Morgan Stanley
 
 
212-816-1383/212-816-1382
212-761-7064/212-761-6117
 
 
 
 
 
 
 
 
Vincent Chao/Mike Husseini
Alexander Goldfarb/Daniel Santos
 
 
Deutsche Bank
Sandler O'Neill
 
 
212-250-6799/212-250-7703
212-466-7937/212-466-7927
 
 
 
 
 
 
 
 
Steve Sakwa/Robert Simone
John W. Guinee/Aaron Wolf
 
 
Evercore ISI
Stifel Nicolaus & Company
 
 
212-446-9462/212-446-9459
443-224-1307/443-224-1206
 
 
 
 
 
 
 
 
RESEARCH COVERAGE - DEBT
 
 
 
 
 
 
Andrew Molloy
Jesse Rosenthal
 
Thierry Perrein
Bank of America/Merrill Lynch
CreditSights
 
Wells Fargo Securities
646-855-6435
212-340-3816
 
704-410-3262
 
 
 
 
 
 
Mark Streeter
Cristina Rosenberg
 
 
JP Morgan
Citi
 
 
212-834-5086
212-723-6199
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
This information is provided as a service to interested parties and not as an endorsement of any report, or representation as to the accuracy of any information contained therein. Opinions, forecasts and other forward-looking statements expressed in analysts' reports are subject to change without notice.        

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

Financing Activities
On June 1, 2017, Alexander’s, Inc. ("Alexander's") (NYSE: ALX), in which we have a 32.4% ownership interest, completed a $500,000,000 refinancing of the office portion of 731 Lexington Avenue. The interest-only loan is at LIBOR plus 0.90% (2.38% at December 31, 2017) and matures in June 2020 with four one-year extension options. In connection therewith, Alexander’s purchased an interest rate cap with a notional amount of $500,000,000 that caps LIBOR at a rate of 6.00%. The property was previously encumbered by a $300,000,000 interest-only mortgage at LIBOR plus 0.95% which was scheduled to mature in March 2021.

On June 15, 2017, the joint venture, in which we have a 50.1% interest, completed a $271,000,000 loan facility for the Moynihan Office Building, of which $210,269,000 is outstanding at December 31, 2017. The interest-only loan is at LIBOR plus 3.25% (4.64% at December 31, 2017) and matures in June 2019 with two one-year extension options.
On June 20, 2017, we completed a $220,000,000 financing of The Bartlett residential building. The five-year interest-only loan is at LIBOR plus 1.70%, and matures in June 2022. On July 17, 2017, the property, the loan and the $217,000,000 of net proceeds were transferred to JBGS in connection with the tax-free spin-off of our Washington, DC segment.

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

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

On July 27, 2017, Vornado Capital Partners Real Estate Fund ("Fund"), in which we have a 25.0% ownership interest, completed a $100,000,000 loan facility for the refinancing of 1100 Lincoln Road, a 130,000 square foot retail and theater property in Miami, Florida. The loan is interest-only at LIBOR plus 2.40% (3.76% at December 31, 2017), matures in July 2020 with two one-year extension options. At closing, the fund drew $82,750,000, and subject to property performance, may borrow up to $17,250,000 of additional proceeds within the first 18 months of the loan term. The property was previously encumbered by a $66,000,000 interest-only mortgage at LIBOR plus 2.25% which was scheduled to mature in August 2017.

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2017 BUSINESS DEVELOPMENTS
 
Financing Activities - continued

On August 23, 2017, the joint venture, in which we have a 50.0% interest, completed a $1.2 billion refinancing of 280 Park Avenue, a 1,250,000 square foot Manhattan office building. The loan is interest-only at LIBOR plus 1.73% (3.16% at December 31, 2017) and matures in September 2019 with five one-year extension options. Our share of net proceeds, after repayment of the existing $900,000,000 LIBOR plus 2.00% mortgage and closing costs, was approximately $140,000,000.

On October 17, 2017, we extended one of our two $1.25 billion unsecured revolving credit facilities from November 2018 to January 2022 with two six-month extension options. The interest rate on the extended facility was lowered from LIBOR plus 1.05% to LIBOR plus 1.00%. The interest rate and facility fees are the same as our other $1.25 billion unsecured revolving credit facility, which matures in February 2021 with two six-month extension options.

On December 13, 2017, the joint venture, in which we have a 50.0% interest, completed a $20,000,000 refinancing of 50 West 57th Street, an 81,000 square foot Manhattan office building. The loan is interest-only at LIBOR plus 1.60% (3.06% at December 31, 2017) and matures in December 2022. The new loan replaced the existing $20,000,000 mortgage which had a fixed rate of 3.50%.

On December 27, 2017, we completed a public offering of $450,000,000 3.50% senior unsecured notes due January 15, 2025. The interest rate on the senior unsecured notes will be payable semi-annually on January 15 and July 15, commencing July 15, 2018. The notes were sold at 99.596% of their face amount to yield 3.565%.

On December 27, 2017, we redeemed all of the $450,000,000 principal amount of our outstanding 2.50% senior unsecured notes which were scheduled to mature on June 30, 2019, at a redemption price of approximately 100.71% of the principal amount plus accrued interest through the date of redemption. In connection therewith, we expensed $4,836,000 of debt prepayment costs and wrote-off unamortized deferred financing costs which are included in "interest and debt expense" on our consolidated statements of income.

In December 2017, we sold 12,780,000 5.25% Series M cumulative redeemable preferred shares at a price of $25.00 per share in an underwritten public offering pursuant to an effective registration statement. We received aggregate net proceeds of $309,609,000, after underwriters’ discounts and issuance costs and contributed the net proceeds to the Operating Partnership in exchange for 12,780,000 5.25% Series M preferred units (with economic terms that mirror those of the Series M preferred shares). Dividends on the Series M preferred shares/units are cumulative and payable quarterly in arrears. The Series M preferred shares/units are not convertible into, or exchangeable for, any of our properties or securities. On or after five years from the date of issuance (or sooner under limited circumstances), we may redeem the Series M preferred shares/units at a redemption price of $25.00 per share, plus accrued and unpaid dividends through the date of redemption. The Series M preferred shares/units have no maturity date and will remain outstanding indefinitely unless redeemed by us.

In December 2017, we called for redemption of all of the outstanding 6.625% Series G and 6.625% Series I cumulative redeemable preferred shares/units. As a result, as of December 31, 2017, we reclassed the 6.625% Series G and 6.625% Series I cumulative redeemable preferred shares/units from shareholder's equity/partner's capital to liabilities on our consolidated balance sheets. On January 4, 2018, we redeemed all of the outstanding 6.625% Series G cumulative redeemable preferred shares/units at their redemption price of $25.00 per share/unit, or $200,000,000 in the aggregate, plus accrued and unpaid dividends/distributions through the date of redemption. On January 4 and 11, 2018, we redeemed 6,000,000 shares/units and 4,800,000 shares/units, respectively, representing all of the outstanding 6.625% Series I cumulative redeemable preferred shares/units at their redemption price of $25.00 per share/unit, or $270,000,000 in the aggregate, plus accrued and unpaid dividends/distributions through the date of redemption. Upon redemption of both series, we expensed $14,486,000 of issuance costs, which will be included in the quarter ended March 31, 2018 consolidated statements of income.

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

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

During 2017, India Property Fund, in which we had a 36.5% interest, sold its investments. Our share of the aggregate sales price was approximately $23,895,000 which resulted in a financial statement loss of $533,000. In addition, on December 28, 2017, we sold our 25% interest in TCG Urban Infrastructure Holdings Private Limited for $18,742,000 which resulted in a financial statement gain of $1,885,000, which substantially completes the disposition of our investments in India.



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COMMON SHARES DATA (NYSE: VNO)
(unaudited)
 
 
 
 
 
 
 
 
 
 
 
 
Vornado Realty Trust common shares are traded on the New York Stock Exchange ("NYSE") under the symbol VNO.  Below is a summary of performance and dividends for VNO common shares (based on NYSE prices):
 
 
 
 
 
 
 
 
 
 
 
 
 
Fourth Quarter
2017
 
Third Quarter
2017
 
Second Quarter
2017
 
First Quarter
2017
High price
$
80.30

(1) 
$
97.25

 
$
103.35

 
$
111.72

Low price
$
71.90

(1) 
$
72.77

(1) 
$
91.18

 
$
98.51

Closing price - end of quarter
$
78.18

(1) 
$
76.88

(1) 
$
93.90

 
$
100.31

 
 
 
 
 
 
 
 
 
 
 
 
Annualized dividend per share
$
2.40

(1) 
$
2.40

(1) 
$
2.84

 
$
2.84

JBGS annualized dividend per share
 
0.45

(2) 
 
0.45

(2) 
 

 
 

 
$
2.85

 
$
2.85

 
$
2.84

 
$
2.84

 
 
 
 
 
 
 
 
 
 
 
 
Annualized dividend yield - on closing price
 
3.1
%
 
 
3.1
%
 
 
3.0
%
 
 
2.8
%
 
 
 
 
 
 
 
 
 
 
 
 
Outstanding shares, Class A units and convertible preferred units as converted, excluding stock options (in thousands)
 
203,198

 
 
203,138

 
 
202,518

 
 
202,453

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

 
$
15.6 Billion

 
$
19.0 Billion

 
$
20.3 Billion

____________________
(1) Reflects the July 17, 2017 spin-off of JBG SMITH Properties (NYSE: JBGS).
(2) JBGS annualized dividend of $0.90 per common share, adjusted for the 1:2 spin-off distribution.

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FINANCIAL HIGHLIGHTS
(unaudited and in thousands, except per share amounts)
 
Three Months Ended
 
Year Ended December 31,
 
December 31,
 
September 30, 2017
 
 
2017
 
2016
 
 
2017
 
2016
Total revenues
$
536,226

 
$
513,974

 
$
528,755

 
$
2,084,126

 
$
2,003,742

 
 
 
 
 
 
 
 
 
 
Net income (loss) attributable to common shareholders
$
27,319

 
$
651,181

 
$
(29,026
)
 
$
162,017

 
$
823,606

Per common share:
 
 
 
 
 
 
 
 
 
Basic
$
0.14

 
$
3.44

 
$
(0.15
)
 
$
0.85

 
$
4.36

Diluted
$
0.14

 
$
3.43

 
$
(0.15
)
 
$
0.85

 
$
4.34

 
 
 
 
 
 
 
 
 
 
Net income attributable to common shareholders, as adjusted (non-GAAP)
$
65,479

 
$
77,767

 
$
72,284

 
$
250,951

 
$
229,159

Per diluted share (non-GAAP)
$
0.34

 
$
0.41

 
$
0.38

 
$
1.31

 
$
1.21

 
 
 
 
 
 
 
 
 
 
FFO, as adjusted (non-GAAP)
$
187,553

 
$
193,239

 
$
184,211

 
$
713,816

 
$
683,395

Per diluted share (non-GAAP)
$
0.98

 
$
1.02

 
$
0.96

 
$
3.73

 
$
3.59

 
 
 
 
 
 
 
 
 
 
FFO (non-GAAP)
$
153,151

 
$
797,734

 
$
100,178

 
$
717,805

 
$
1,457,583

FFO - Operating Partnership Basis ("OP Basis") (non-GAAP)
$
163,523

 
$
850,493

 
$
106,954

 
$
765,206

 
$
1,552,485

Per diluted share (non-GAAP)
$
0.80

 
$
4.20

 
$
0.52

 
$
3.75

 
$
7.66

 
 
 
 
 
 
 
 
 
 
Dividends per common share
$
0.60

 
$
0.63

 
$
0.60

 
$
2.62

 
$
2.52

 
 
 
 
 
 
 
 
 
 
FFO payout ratio (based on FFO, as adjusted)
61.2
%
 
61.8
%
 
62.5
%
 
70.2
%
 
70.2
%
FAD payout ratio
90.9
%
 
106.8
%
 
89.6
%
 
90.7
%
 
111.5
%
 
 
 
 
 
 
 
 
 
 
Weighted average shares used in determining FFO per diluted share - REIT basis
191,063

 
190,108

 
190,893

 
191,304

 
190,173

Convertible units:
 
 
 
 
 
 
 
 
 
Class A
11,677

 
11,485

 
11,707

 
11,688

 
11,513

D-13
615

 
484

 
594

 
539

 
499

G1-G4
50

 
38

 
52

 
52

 
39

Equity awards - unit equivalents
598

 
566

 
558

 
354

 
331

Weighted average shares used in determining FFO per diluted share - OP Basis
204,003

 
202,681

 
203,804

 
203,937

 
202,555


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COMPONENTS OF NET ASSET VALUE (AT SHARE)
 
 
(unaudited and in millions, except square feet and per share amounts)
 
 
 
Year Ended December 31, 2017
 
 
 
 
 
 
NOI - cash basis
 
Less: BMS
 
Pro-forma
NOI - cash basis
 
 
 
 
 
 
 
 
 
Cap Rate
 
Value(1)
 
New York - Office
$
679

 
$
(24
)
 
$
655

 
4.50
%
 
$
14,556

 
New York - Retail
324

 

 
324

 
4.25
%
 
7,624

 
New York - Residential
22

 

 
22

 
3.50
%
 
629

 
theMART
99

 

 
99

 
5.00
%
 
1,980

 
555 California Street
45

 

 
45

(2) 
N/A

 
1,260

 
 
$
1,169

 
$
(24
)
 
$
1,145

 
 
 
26,049

 
Less: Market management fee (28,565,000 square feet in service at share at $0.50 per square foot) at a 4.50% cap rate
 
 
 
 
 
 
 
 
317

 
 


 


 


 
 
 
$
25,732

 

Other Asset Values:
 
 
 
 
Cash, restricted cash and marketable securities (3)
 
 
$
1,618

 
ALX - 1,654,068 shares at $395.85 per share (as of December 31, 2017)
 
 
655

 
220 CPS - incremental value after repayment of debt and taxes
900

 
 
 
Less: Dividends paid to common shareholders
(250
)
 
 
 
 
 
 
650

 
Hotel Pennsylvania
 
 
500

 
BMS (2017 NOI of $24 at a 7.0x multiple)
 
 
168

 
UE - 5,717,184 shares at $25.49 per share (as of December 31, 2017)
 
 
146

 
Real estate fund investments (VNO's share at fair value)
 
 
99

 
PEI - 6,250,000 shares at $11.89 per share (as of December 31, 2017)
 
 
74

 
Other assets
 
 
1,011

 
Other construction in progress (at 110% of book value)
 
 
135

 
 
 
 
$
5,056

 
 
 
 
 
 
Liabilities (see following page)
 
 
$
11,268

 
 
 
 
 
 
NAV
 
 
$
19,520

(1) 
NAV per share
 
 
 
 
     (203.2 million common shares outstanding on an OP basis as of December 31, 2017)
 
 
$
96

(1) 
 
 
 
 
 
____________________
See notes on following page.

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COMPONENTS OF NET ASSET VALUE (AT SHARE)
(unaudited and in millions)
 
Liabilities
 
Q4 2017
 
Adjustments
 
Net
Consolidated contractual mortgage notes payable, net of noncontrolling interests' share
$
7,602

 
$
(950
)
(4) 
$
6,652

Non-consolidated real estate debt
2,834

(5) 
(699
)
(6) 
2,135

Corporate unsecured debt
850

 

 
850

Revolver/term loan
750

 
(750
)
(4) 

Other liabilities
706

 

 
706

Perpetual preferred (at redemption value)
1,395

 
(470
)
(3) 
925

Total Liabilities
$
14,137

 
$
(2,869
)
 
$
11,268

________________________________________
(1)
Capitalization Rate ("Cap Rate") means the rate applied to pro forma cash basis NOI to determine the fair value of our properties. The Cap Rates reflected in this financial supplement are based on management’s estimates, which are inherently uncertain. Other asset values are also estimates made by management, which are inherently uncertain. There can be no assurance that management’s estimates accurately reflect the fair value of our assets, and actual value may differ materially.
(2)
Excludes incremental NOI from the lease-up of 315 and 345 Montgomery Street.
(3)
Pro-forma taking into consideration the January 2018 redemption of our Series G and Series I preferred shares for $470.
(4)
Debt related to 220 Central Park South.
(5)
Excludes our share of debt of ALX, UE, and PEI as they are presented on an equity basis in other asset values.
(6)
666 Fifth Avenue Office Condominium.
























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https://cdn.kscope.io/d83f209fa0c1cf984946656b60e89cf3-vornado1.jpg

CONSOLIDATED NET INCOME (LOSS) ATTRIBUTABLE TO COMMON SHAREHOLDERS
(unaudited and in thousands)
 
 
Three Months Ended
 
 
December 31,
 
September 30,
 
 
2017
 
2016
 
Inc (Dec)
 
2017
Property rentals
 
$
419,970

 
$
388,810

 
$
31,160

 
$
411,838

Straight-lining of rents
 
8,040

 
23,195

 
(15,155
)
 
9,170

Amortization of acquired below-market leases, net
 
11,345

 
11,185

 
160

 
11,054

Total property rentals
 
439,355

 
423,190

 
16,165

 
432,062

Tenant expense reimbursements
 
59,333

 
58,732

 
601

 
63,401

Fee and other income:
 
 
 
 
 
 
 
 
BMS cleaning fees
 
28,218

 
24,769

 
3,449

 
26,429

Management and leasing fees
 
2,705

 
2,549

 
156

 
2,330

Lease termination fees
 
2,224

 
1,647

 
577

 
991

Other income
 
4,391

 
3,087

 
1,304

 
3,542

Total revenues
 
536,226

 
513,974

 
22,252

 
528,755

Operating expenses
 
225,011

 
218,020

 
6,991

 
225,226

Depreciation and amortization
 
114,166

 
104,640

 
9,526

 
104,972

General and administrative
 
36,838

 
36,957

 
(119
)
 
36,261

Acquisition and transaction related costs
 
703

 
2,754

 
(2,051
)
 
61

Total expenses
 
376,718

 
362,371

 
14,347

 
366,520

Operating income
 
159,508

 
151,603

 
7,905

 
162,235

Income (loss) from partially owned entities
 
9,622

 
165,056

 
(155,434
)
 
(41,801
)
Income (loss) from real estate fund investments
 
4,889

 
(52,352
)
 
57,241

 
(6,308
)
Interest and other investment income, net
 
9,993

 
9,427

 
566

 
9,306

Interest and debt expense
 
(93,073
)
 
(80,206
)
 
(12,867
)
 
(85,068
)
Net gains on disposition of wholly owned and partially owned assets
 

 
208

 
(208
)
 

Income before income taxes
 
90,939

 
193,736

 
(102,797
)
 
38,364

Income tax (expense) benefit
 
(38,661
)
 
1,692

 
(40,353
)
 
(1,188
)
Income from continuing operations
 
52,278

 
195,428

 
(143,150
)
 
37,176

Income (loss) from discontinued operations
 
1,273

 
509,116

 
(507,843
)
 
(47,930
)
Net income (loss)
 
53,551

 
704,544

 
(650,993
)
 
(10,754
)
Less net (income) loss attributable to noncontrolling interests in:
 
 
 
 
 
 
 
 
Consolidated subsidiaries
 
(7,366
)
 
5,010

 
(12,376
)
 
(4,022
)
Operating Partnership
 
(1,853
)
 
(42,244
)
 
40,391

 
1,878

Net income (loss) attributable to Vornado
 
44,332

 
667,310

 
(622,978
)
 
(12,898
)
Preferred share dividends
 
(17,013
)
 
(16,129
)
 
(884
)
 
(16,128
)
Net income (loss) attributable to common shareholders
 
$
27,319

 
$
651,181

 
$
(623,862
)
 
$
(29,026
)
 
 
 
 
 
 
 
 
 
Capitalized expenditures:
 
 
 
 
 
 
 
 
Leasing payroll
 
$
1,749

 
$
1,215

 
$
534

 
$
1,280

Development payroll
 
1,710

 
1,718

 
(8
)
 
1,495

Interest and debt expense
 
13,251

 
8,833

 
4,418

 
12,584



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https://cdn.kscope.io/d83f209fa0c1cf984946656b60e89cf3-vornado1.jpg

CONSOLIDATED NET INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS
(unaudited and in thousands)
 
 
Year Ended December 31,
 
 
2017
 
2016
 
Inc (Dec)
Property rentals
 
$
1,629,753

 
$
1,488,321

 
$
141,432

Straight-lining of rents
 
39,096

 
121,923

 
(82,827
)
Amortization of acquired below-market leases, net
 
46,103

 
51,849

 
(5,746
)
Total property rentals
 
1,714,952

 
1,662,093

 
52,859

Tenant expense reimbursements
 
233,424

 
221,563

 
11,861

Fee and other income:
 
 
 
 
 
 
BMS cleaning fees
 
104,143

 
93,425

 
10,718

Management and leasing fees
 
10,087

 
8,243

 
1,844

Lease termination fees
 
8,171

 
8,770

 
(599
)
Other income
 
13,349

 
9,648

 
3,701

Total revenues
 
2,084,126

 
2,003,742

 
80,384

Operating expenses
 
886,596

 
844,566

 
42,030

Depreciation and amortization
 
429,389

 
421,023

 
8,366

General and administrative
 
158,999

 
149,550

 
9,449

Acquisition and transaction related costs
 
1,776

 
9,451

 
(7,675
)
Total expenses
 
1,476,760

 
1,424,590

 
52,170

Operating income
 
607,366

 
579,152

 
28,214

Income from partially owned entities
 
15,200

 
168,948

 
(153,748
)
Income (loss) from real estate fund investments
 
3,240

 
(23,602
)
 
26,842

Interest and other investment income, net
 
37,793

 
29,548

 
8,245

Interest and debt expense
 
(345,654
)
 
(330,240
)
 
(15,414
)
Net gains on disposition of wholly owned and partially owned assets
 
501

 
160,433

 
(159,932
)
Income before income taxes
 
318,446

 
584,239

 
(265,793
)
Income tax expense
 
(41,090
)
 
(7,229
)
 
(33,861
)
Income from continuing operations
 
277,356

 
577,010

 
(299,654
)
(Loss) income from discontinued operations
 
(13,228
)
 
404,912

 
(418,140
)
Net income
 
264,128

 
981,922

 
(717,794
)
Less net income attributable to noncontrolling interests in:
 
 
 
 
 
 
Consolidated subsidiaries
 
(25,802
)
 
(21,351
)
 
(4,451
)
Operating Partnership
 
(10,910
)
 
(53,654
)
 
42,744

Net income attributable to Vornado
 
227,416

 
906,917

 
(679,501
)
Preferred share dividends
 
(65,399
)
 
(75,903
)
 
10,504

Preferred share issuance costs (Series J redemption)
 

 
(7,408
)
 
7,408

Net income attributable to common shareholders
 
$
162,017

 
$
823,606

 
$
(661,589
)
 
 
 
 
 
 
 
Capitalized expenditures:
 
 
 
 
 
 
Leasing payroll
 
$
5,243

 
$
7,352

 
$
(2,109
)
Development payroll
 
6,044

 
7,067

 
(1,023
)
Interest and debt expense
 
48,230

 
30,343

 
17,887




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https://cdn.kscope.io/d83f209fa0c1cf984946656b60e89cf3-vornado1.jpg

NET INCOME (LOSS) ATTRIBUTABLE TO COMMON SHAREHOLDERS BY SEGMENT
(unaudited and in thousands)

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.

On December 1, 2016 we were repaid the 85 Tenth Avenue mezzanine loans and we received a 49.9% equity interest in the property. In 2017, our 49.9% equity interest in the property is included in the "New York" segment. In 2016, our investment in 85 Tenth Avenue mezzanine loans was included in the "Other" segment.
 
 
Three Months Ended December 31, 2017
 
 
Total
 
New York
 
Other
Property rentals
 
$
419,970

 
$
354,943

 
$
65,027

Straight-lining of rents
 
8,040

 
7,661

 
379

Amortization of acquired below-market leases, net
 
11,345

 
11,046

 
299

Total property rentals
 
439,355

 
373,650

 
65,705

Tenant expense reimbursements
 
59,333

 
52,556

 
6,777

Fee and other income:
 
 
 
 
 
 
BMS cleaning fees
 
28,218

 
30,091

 
(1,873
)
Management and leasing fees
 
2,705

 
2,006

 
699

Lease termination fees
 
2,224

 
2,182

 
42

Other income
 
4,391

 
2,112

 
2,279

Total revenues
 
536,226

 
462,597

 
73,629

Operating expenses
 
225,011

 
195,421

 
29,590

Depreciation and amortization
 
114,166

 
92,122

 
22,044

General and administrative
 
36,838

 
8,567

 
28,271

Acquisition and transaction related costs
 
703

 

 
703

Total expenses
 
376,718

 
296,110

 
80,608

Operating income (loss)
 
159,508

 
166,487

 
(6,979
)
Income from partially owned entities
 
9,622

 
8,141

 
1,481

Income from real estate fund investments
 
4,889

 

 
4,889

Interest and other investment income, net
 
9,993

 
1,480

 
8,513

Interest and debt expense
 
(93,073
)
 
(63,024
)
 
(30,049
)
Income (loss) before income taxes
 
90,939

 
113,084

 
(22,145
)
Income tax expense
 
(38,661
)
 
(1,118
)
 
(37,543
)
Income (loss) from continuing operations
 
52,278

 
111,966

 
(59,688
)
Income from discontinued operations
 
1,273

 

 
1,273

Net income (loss)
 
53,551

 
111,966

 
(58,415
)
Less net income attributable to noncontrolling interests in:
 
 
 
 
 
 
Consolidated subsidiaries
 
(7,366
)
 
(2,790
)
 
(4,576
)
Operating Partnership
 
(1,853
)
 

 
(1,853
)
Net income (loss) attributable to Vornado
 
44,332

 
109,176

 
(64,844
)
Preferred share dividends
 
(17,013
)
 

 
(17,013
)
Net income (loss) attributable to common shareholders for the three months ended December 31, 2017
 
$
27,319

 
$
109,176

 
$
(81,857
)
Net income attributable to common shareholders for the three months ended December 31, 2016
 
$
651,181

 
$
121,168

 
$
530,013


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https://cdn.kscope.io/d83f209fa0c1cf984946656b60e89cf3-vornado1.jpg

NET INCOME (LOSS) ATTRIBUTABLE TO COMMON SHAREHOLDERS BY SEGMENT
(unaudited and in thousands)

 
 
Year Ended December 31, 2017
 
 
Total
 
New York
 
Other
Property rentals
 
$
1,629,753

 
$
1,361,140

 
$
268,613

Straight-lining of rents
 
39,096

 
30,651

 
8,445

Amortization of acquired below-market leases, net
 
46,103

 
44,781

 
1,322

Total property rentals
 
1,714,952

 
1,436,572

 
278,380

Tenant expense reimbursements
 
233,424

 
207,620

 
25,804

Fee and other income:
 
 
 
 
 
 
BMS cleaning fees
 
104,143

 
110,986

 
(6,843
)
Management and leasing fees
 
10,087

 
8,599

 
1,488

Lease termination fees
 
8,171

 
7,955

 
216

Other income
 
13,349

 
7,575

 
5,774

Total revenues
 
2,084,126

 
1,779,307

 
304,819

Operating expenses
 
886,596

 
756,670

 
129,926

Depreciation and amortization
 
429,389

 
344,875

 
84,514

General and administrative
 
158,999

 
40,197

 
118,802

Acquisition and transaction related costs
 
1,776

 

 
1,776

Total expenses
 
1,476,760

 
1,141,742

 
335,018

Operating income (loss)
 
607,366

 
637,565

 
(30,199
)
Income (loss) from partially owned entities
 
15,200

 
29,559

 
(14,359
)
Income from real estate fund investments
 
3,240

 

 
3,240

Interest and other investment income, net
 
37,793

 
5,864

 
31,929

Interest and debt expense
 
(345,654
)
 
(242,875
)
 
(102,779
)
Net gains on disposition of wholly owned and partially owned assets
 
501

 

 
501

Income (loss) before income taxes
 
318,446

 
430,113

 
(111,667
)
Income tax expense
 
(41,090
)
 
(1,442
)
 
(39,648
)
Income (loss) from continuing operations
 
277,356

 
428,671

 
(151,315
)
Loss from discontinued operations
 
(13,228
)
 

 
(13,228
)
Net income (loss)
 
264,128

 
428,671

 
(164,543
)
Less net income attributable to noncontrolling interests in:
 
 
 
 
 
 
Consolidated subsidiaries
 
(25,802
)
 
(10,831
)
 
(14,971
)
Operating Partnership
 
(10,910
)
 

 
(10,910
)
Net income (loss) attributable to Vornado
 
227,416

 
417,840

 
(190,424
)
Preferred share dividends
 
(65,399
)
 

 
(65,399
)
Net income (loss) attributable to common shareholders for the year ended December 31, 2017
 
$
162,017

 
$
417,840

 
$
(255,823
)
Net income attributable to common shareholders for the year ended December 31, 2016
 
$
823,606

 
$
587,793

 
$
235,813



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https://cdn.kscope.io/d83f209fa0c1cf984946656b60e89cf3-vornado1.jpg

NET OPERATING INCOME AT SHARE BY SEGMENT
(unaudited and in thousands)
 
 
 
 
 
 
 
 
 
 
 
For the Three Months Ended December 31, 2017
 
Total
 
New York
 
Other
Total revenues
$
536,226

 
$
462,597

 
$
73,629

Operating expenses
225,011

 
195,421

 
29,590

NOI - consolidated
311,215

 
267,176

 
44,039

Deduct: NOI attributable to noncontrolling interests in consolidated subsidiaries
(16,533
)
 
(11,648
)
 
(4,885
)
Add: Our share of NOI from partially owned entities
69,175

 
48,700

 
20,475

NOI at share
363,857

 
304,228

 
59,629

Non-cash adjustments for straight-line rents, amortization of acquired below-market leases, net and other
(21,579
)
 
(21,441
)
 
(138
)
NOI at share - cash basis
$
342,278

 
$
282,787

 
$
59,491

 
For the Three Months Ended December 31, 2016
 
Total
 
New York
 
Other
Total revenues
$
513,974

 
$
443,910

 
$
70,064

Operating expenses
218,020

 
182,762

 
35,258

NOI - consolidated
295,954

 
261,148

 
34,806

Deduct: NOI attributable to noncontrolling interests in consolidated subsidiaries
(16,083
)
 
(11,829
)
 
(4,254
)
Add: Our share of NOI from partially owned entities
75,142

 
41,465

 
33,677

NOI at share
355,013

 
290,784

 
64,229

Non-cash adjustments for straight-line rents, amortization of acquired below-market leases, net and other
(36,370
)
 
(29,547
)
 
(6,823
)
NOI at share - cash basis
$
318,643

 
$
261,237

 
$
57,406

 
For the Three Months Ended September 30, 2017
 
Total
 
New York
 
Other
Total revenues
$
528,755

 
$
453,609

 
$
75,146

Operating expenses
225,226

 
192,430

 
32,796

NOI - consolidated
303,529

 
261,179

 
42,350

Deduct: NOI attributable to noncontrolling interests in consolidated subsidiaries
(16,171
)
 
(11,464
)
 
(4,707
)
Add: Our share of NOI from partially owned entities
66,876

 
48,779

 
18,097

NOI at share
354,234

 
298,494

 
55,740

Non-cash adjustments for straight-line rents, amortization of acquired below-market leases, net and other
(22,307
)
 
(21,092
)
 
(1,215
)
NOI at share - cash basis
$
331,927

 
$
277,402

 
$
54,525

________________________________________
See appendix page vi for details of net operating income components.

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https://cdn.kscope.io/d83f209fa0c1cf984946656b60e89cf3-vornado1.jpg

NET OPERATING INCOME AT SHARE BY SEGMENT
(unaudited and 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

 
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

________________________________________
See appendix page vi for details of net operating income components.

- 17 -


https://cdn.kscope.io/d83f209fa0c1cf984946656b60e89cf3-vornado1.jpg

NET OPERATING INCOME AT SHARE BY SUBSEGMENT
(unaudited and in thousands)
 
 
 
 
 
 
 
 
 
 
 
For the Three Months Ended
 
 
 
 
 
December 31,
 
September 30,
2017
 
For the Year Ended December 31,
 
2017
 
2016
 
 
2017
 
2016
NOI at share:
 
 
 
 
 
 
 
 
 
New York:
 
 
 
 
 
 
 
 
 
Office
$
189,481

 
$
174,609

 
$
185,169

 
$
721,183

 
$
662,221

Retail
90,853

 
93,117

 
90,088

 
359,944

 
364,953

Residential
5,920

 
6,158

 
5,981

 
24,370

 
25,060

Alexander's
11,656

 
11,495

 
11,937

 
47,302

 
47,295

Hotel Pennsylvania
6,318

 
5,405

 
5,319

 
13,266

 
8,997

Total New York
304,228

 
290,784

 
298,494

 
1,166,065

 
1,108,526

 
 
 
 
 
 
 
 
 
 
Other:
 
 
 
 
 
 
 
 
 
theMART
24,249

 
22,749

 
26,019

 
102,339

 
98,498

555 California Street
12,003

 
10,578

 
11,519

 
47,588

 
45,848

Other investments
23,377

 
30,902

 
18,202

 
85,391

 
111,236

Total Other
59,629

 
64,229

 
55,740

 
235,318

 
255,582

 
 
 
 
 
 
 
 
 
 
Total NOI at share
$
363,857

 
$
355,013

 
$
354,234

 
$
1,401,383

 
$
1,364,108

NOI at share - cash basis:
 
 
 
 
 
 
 
 
 
New York:
 
 
 
 
 
 
 
 
 
Office
$
175,787

 
$
157,679

 
$
172,741

 
$
678,839

 
$
593,785

Retail
83,320

 
80,817

 
81,612

 
324,318

 
292,019

Residential
5,325

 
5,560

 
5,417

 
21,626

 
22,285

Alexander's
12,004

 
11,743

 
12,280

 
48,683

 
48,070

Hotel Pennsylvania
6,351

 
5,438

 
5,352

 
13,397

 
9,128

Total New York
282,787

 
261,237

 
277,402

 
1,086,863

 
965,287

 
 
 
 
 
 
 
 
 
 
Other:
 
 
 
 
 
 
 
 
 
theMART
24,396

 
21,660

 
25,417

 
99,242

 
92,571

555 California Street
11,916

 
8,702

 
10,889

 
45,281

 
32,601

Other investments
23,179

 
27,044

 
18,219

 
83,155

 
103,172

Total Other
59,491

 
57,406

 
54,525

 
227,678

 
228,344

 
 
 
 
 
 
 
 
 
 
Total NOI at share - cash basis
$
342,278

 
$
318,643

 
$
331,927

 
$
1,314,541

 
$
1,193,631




- 18 -


https://cdn.kscope.io/d83f209fa0c1cf984946656b60e89cf3-vornado1.jpg

CONSOLIDATED BALANCE SHEETS
(unaudited and in thousands)
 
December 31, 2017
 
December 31, 2016
 
(Decrease) Increase
ASSETS
 
 
 
 
 
Real estate, at cost:
 
 
 
 
 
Land
$
3,143,648

 
$
3,130,825

 
$
12,823

Buildings and improvements
9,898,605

 
9,684,144

 
214,461

Development costs and construction in progress
1,615,101

 
1,278,941

 
336,160

Leasehold improvements and equipment
98,941

 
93,910

 
5,031

Total
14,756,295

 
14,187,820

 
568,475

Less accumulated depreciation and amortization
(2,885,283
)
 
(2,581,514
)
 
(303,769
)
Real estate, net
11,871,012

 
11,606,306

 
264,706

Cash and cash equivalents
1,817,655

 
1,501,027

 
316,628

Restricted cash
97,157

 
95,032

 
2,125

Marketable securities
182,752

 
203,704

 
(20,952
)
Tenant and other receivables, net
58,700

 
61,069

 
(2,369
)
Investments in partially owned entities
1,056,829

 
1,378,254

 
(321,425
)
Real estate fund investments
354,804

 
462,132

 
(107,328
)
Receivable arising from the straight-lining of rents, net
926,711

 
885,167

 
41,544

Deferred leasing costs, net
403,492

 
354,997

 
48,495

Identified intangible assets, net
159,260

 
189,668

 
(30,408
)
Assets related to discontinued operations
1,357

 
3,568,613

 
(3,567,256
)
Other assets
468,205

 
508,878

 
(40,673
)
Total Assets
$
17,397,934

 
$
20,814,847

 
$
(3,416,913
)
 
 
 
 
 
 
LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND EQUITY
 
 
 
 
 
Liabilities:
 
 
 
 
 
Mortgages payable, net
$
8,137,139

 
$
8,113,248

 
$
23,891

Senior unsecured notes, net
843,614

 
845,577

 
(1,963
)
Unsecured term loan, net
748,734

 
372,215

 
376,519

Unsecured revolving credit facilities

 
115,630

 
(115,630
)
Accounts payable and accrued expenses
415,794

 
397,134

 
18,660

Deferred revenue
227,069

 
276,276

 
(49,207
)
Deferred compensation plan
109,177

 
121,183

 
(12,006
)
Liabilities related to discontinued operations
3,620

 
1,259,443

 
(1,255,823
)
Preferred shares to be redeemed on January 4 and 11, 2018
455,514

 

 
455,514

Other liabilities
464,635

 
417,199

 
47,436

Total liabilities
11,405,296

 
11,917,905

 
(512,609
)
Redeemable noncontrolling interests
984,937

 
1,278,446

 
(293,509
)
Vornado shareholders' equity
4,337,652

 
6,898,519

 
(2,560,867
)
Noncontrolling interests in consolidated subsidiaries
670,049

 
719,977

 
(49,928
)
Total Liabilities, Redeemable Noncontrolling Interests and Equity
$
17,397,934

 
$
20,814,847

 
$
(3,416,913
)

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CAPITAL STRUCTURE (PRO FORMA(1))
(unaudited and in thousands, except per share and per unit amounts)
 
 
 
 
 
December 31, 2017
Debt (contractual balances) (non-GAAP):
 
 
 
 
 
Consolidated debt (2):
 
 
 
 
 
Mortgages payable
 
 
 
 
$
8,203,839

Senior unsecured notes
 
 
 
 
850,000

$750 Million unsecured term loan
 
 
 
 
750,000

$2.5 Billion unsecured revolving credit facilities
 
 
 
 

 
 
 
 
 
9,803,839

Pro rata share of debt of non-consolidated entities (excluding $1,857,387 of Toys' debt)
 
 
 
 
3,430,889

Less: Noncontrolling interests' share of consolidated debt
        (primarily 1290 Avenue of the Americas, 555 California Street, and St. Regis - retail)
 
 
 
 
(601,374
)
 
 
 
 
 
12,633,354

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

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

5.70% Series K preferred shares
12,000

 
25.00

 
300,000

5.40% Series L preferred shares
12,000

 
25.00

 
300,000

5.25% Series M preferred shares
12,780

 
25.00

 
319,500

 
 
 
 
 
924,928

 
 
 
 
 
 
 
Converted
Shares
 
December 31, 2017
Common Share Price
 
 
Equity:
 
 
 
 
 
Common shares
189,984

 
$
78.18

 
14,852,949

Class A units
11,654

 
78.18

 
911,110

Convertible share equivalents:
 
 
 
 
 
Equity awards - unit equivalents
875

 
78.18

 
68,407

D-13 preferred units
597

 
78.18

 
46,673

G1-G4 units
50

 
78.18

 
3,909

Series A preferred shares
38

 
78.18

 
2,971

 
 
 
 
 
15,886,019

 
 
 
 
 
 
Total Market Capitalization
 
 
 
 
$
29,444,301

____________________
(1)
In December 2017, we called for redemption all of the outstanding 6.625% Series G and 6.625% Series I cumulative redeemable preferred shares. These shares were redeemed on January 4 and 11, 2018. As a result, we reclassed to liabilities all of the outstanding shares in the aggregate amount of $455,514 on our consolidated balance sheets as of December 31, 2017.
(2)
See reconciliation of consolidated debt, net (GAAP) to contractual debt (non-GAAP) on page xiv in Appendix: Non-GAAP Reconciliations.

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https://cdn.kscope.io/d83f209fa0c1cf984946656b60e89cf3-vornado1.jpg

DEBT ANALYSIS
 
 
 
 
 
 
 
 
 
 
 
(unaudited and in thousands)
 
 
 
 
 
 
 
 
 
 
 
 
As of December 31, 2017
 
Total
 
Variable
 
Fixed
(Contractual debt balances) (non-GAAP)
Amount
 
Weighted
Average
Interest Rate
 
Amount
 
Weighted
Average
Interest Rate
 
Amount
 
Weighted
Average
Interest Rate
Consolidated debt(1)
$
9,803,839

 
3.53%
 
$
3,492,133

 
3.19%
 
$
6,311,706

 
3.72%
Pro rata share of debt of non-consolidated entities:
 

 
 
 
 
 
 
 
 
 
 
Toys
1,857,387

 
8.87%
 
1,269,522

 
8.20%
 
587,865

 
10.31%
All other
3,430,889

 
4.22%
 
1,395,001

 
3.24%
 
2,035,888

 
4.89%
Total
15,092,115

 
4.35%
 
6,156,656

 
4.24%
 
8,935,459

 
4.42%
Less: Noncontrolling interests' share of consolidated debt (primarily 1290 Avenue of the Americas, 555 California Street, and St. Regis - retail)
(601,374
)
 
 
 
(145,609
)
 
 
 
(455,765
)
 
 
Company's pro rata share of total debt
$
14,490,741

 
4.37%
 
$
6,011,047

 
4.26%
 
$
8,479,694

 
4.44%
.
Debt Covenant Ratios:(2)
Senior Unsecured Notes
 
Unsecured Revolving Credit Facilities
and Unsecured Term Loan
 
 
 
Actual
 
 
Required
 
Due 2022
 
Due 2025
 
Required
 
Actual
Total outstanding debt/total assets(3)
Less than 65%
 
47%
 
45%
 
Less than 60%
 
36%
Secured debt/total assets
Less than 50%
 
38%
 
36%
 
Less than 50%
 
29%
Interest coverage ratio (annualized combined EBITDA to annualized interest expense)
Greater than 1.50
 
2.79
 
2.79
 
 
 
N/A
Fixed charge coverage
 
 
N/A
 
N/A
 
Greater than 1.40
 
2.44
Unencumbered assets/unsecured debt
Greater than 150%
 
456%
 
480%
 
 
 
N/A
Unsecured debt/cap value of unencumbered assets
 
 
N/A
 
N/A
 
Less than 60%
 
18%
Unencumbered coverage ratio
 
 
N/A
 
N/A
 
Greater than 1.50
 
8.67
Unencumbered EBITDA (non-GAAP):
Q4 2017
 
 
Annualized
 
New York
$
477,944

 
Other
33,756

 
Total
$
511,700

 
____________________
(1)
See reconciliation of consolidated debt, net (GAAP) to contractual debt (non-GAAP) on page xiv in Appendix: Non-GAAP Reconciliations.
(2)
Our debt covenant ratios are computed in accordance with the terms of our senior unsecured notes, unsecured revolving credit facilities, and unsecured term loan, as applicable.  The methodology used for these computations may differ significantly from similarly titled ratios of other companies. For additional information regarding the methodology used to compute these ratios, please see our filings with the SEC of our revolving credit facilities, senior debt indentures and applicable prospectuses and prospectus supplements.
(3)
Total assets include EBITDA capped at 7.5% under the senior unsecured notes due 2022, 7.0% under the senior unsecured notes due 2025 and 6.0% under the unsecured revolving credit facilities and unsecured term loan.

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DEBT MATURITIES (CONTRACTUAL BALANCES) (NON-GAAP)
(unaudited and in thousands)
Property
 
Maturity
Date (1)
 
Spread over
LIBOR
 
Interest
Rate
 
2018
 
2019
 
2020
 
2021
 
2022
 
Thereafter
 
Total
828-850 Madison Avenue Retail Condominium
 
06/18
 
 
 
5.29%
 
$
80,000

 
$

 
$

 
$

 
$

 
$

 
$
80,000

33-00 Northern Boulevard
 
10/18
 
 
(2) 
4.43%
 
59,752

 

 

 

 

 

 
59,752

435 Seventh Avenue - retail
 
08/19
 
L+225
 
3.74%
 

 
96,780

 

 

 

 

 
96,780

4 Union Square South - retail
 
11/19
 
L+215
 
3.51%
 

 
114,028

 

 

 

 

 
114,028

150 West 34th Street
 
06/20
 
L+225
 
3.65%
 

 

 
205,000

 

 

 

 
205,000

100 West 33rd Street - office and retail
 
07/20
 
L+165
 
3.03%
 

 

 
580,000

 

 

 

 
580,000

220 Central Park South
 
09/20
 
L+200
 
3.57%
 

 

 
950,000

 

 

 

 
950,000

Unsecured Term Loan
 
10/20
 
L+115
 
2.68%
 

 

 
750,000

 

 

 

 
750,000

Eleven Penn Plaza
 
12/20
 
 
 
3.95%
 

 

 
450,000

 

 

 

 
450,000

888 Seventh Avenue
 
12/20
 
 
(3) 
3.15%
 

 

 
375,000

 

 

 

 
375,000

Borgata Land
 
02/21
 
 
 
5.14%
 

 

 

 
55,606

 

 

 
55,606

770 Broadway
 
03/21
 
 
(4) 
2.56%
 

 

 

 
700,000

 

 

 
700,000

909 Third Avenue
 
05/21
 
 
 
3.91%
 

 

 

 
350,000

 

 

 
350,000

606 Broadway
 
05/21
 
L+300
 
4.43%
 

 

 

 
38,458

 

 

 
38,458

555 California Street
 
09/21
 
 
 
5.10%
 

 

 

 
569,215

 

 

 
569,215

theMART
 
09/21
 
 
 
2.70%
 

 

 

 
675,000

 

 

 
675,000

655 Fifth Avenue
 
10/21
 
L+140
 
2.76%
 

 

 

 
140,000

 

 

 
140,000

Two Penn Plaza
 
12/21
 
 
(5) 
4.26%
 

 

 

 
575,000

 

 

 
575,000

Senior unsecured notes due 2022
 
01/22
 
 
 
5.00%
 

 

 

 

 
400,000

 

 
400,000

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

 

 

 

 

 

 

1290 Avenue of the Americas
 
11/22
 
 
 
3.34%
 

 

 

 

 
950,000

 

 
950,000

697-703 Fifth Avenue (St. Regis - retail)
 
12/22
 
L+180
 
3.16%
 

 

 

 

 
450,000

 

 
450,000

$1.25 Billion unsecured revolving credit facility
 
01/23
 
L+100
 
—%
 

 

 

 

 

 

 

666 Fifth Avenue Retail Condominium
 
03/23
 
 
 
3.61%
 

 

 

 

 

 
390,000

 
390,000

Senior unsecured notes due 2025
 
01/25
 
 
 
3.50%
 

 

 

 

 

 
450,000

 
450,000

350 Park Avenue
 
01/27
 
 
 
3.92%
 

 

 

 

 

 
400,000

 
400,000

Total consolidated debt (contractual)
 
 
 
 
 
 
 
$
139,752

 
$
210,808

 
$
3,310,000

 
$
3,103,279

 
$
1,800,000

 
$
1,240,000

 
$
9,803,839

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Weighted average rate
 
 
 
 
 
 
 
4.92
%
 
3.62
%
 
3.28
%
 
3.60
%
 
3.67
%
 
3.67
%
 
3.53
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fixed rate debt
 
 
 
 
 
 
 
$
139,752

 
$

 
$
825,000

 
$
2,756,954

 
$
1,350,000

 
$
1,240,000

 
$
6,311,706

Fixed weighted average rate expiring
 
 
 
 
 
 
 
4.92
%
 
%
 
3.59
%
 
3.67
%
 
3.83
%
 
3.67
%
 
3.72
%
Floating rate debt
 
 
 
 
 
 
 
$

 
$
210,808

 
$
2,485,000

 
$
346,325

 
$
450,000

 
$

 
$
3,492,133

Floating weighted average rate expiring
 
 
 
 
 
 
 
%
 
3.62
%
 
3.18
%
 
3.07
%
 
3.16
%
 
%
 
3.19
%
____________________________________________________________________________________________________________________________________
(1)
Represents the extended maturity for certain loans in which we have the unilateral right to extend.
(2)
Refinanced on January 5, 2018. The new seven-year loan 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.
(3)
Pursuant to an existing swap agreement, the loan bears interest at 3.15% through December 2020. The rate was swapped from LIBOR plus 1.60% (2.96% as of December 31, 2017).
(4)
Pursuant to an existing swap agreement, the loan bears interest at 2.56% through September 2020. The rate was swapped from LIBOR plus 1.75% (3.15% as of December 31, 2017).
(5)
Pursuant to an existing swap agreement, $407,000 of the loan bears interest at a fixed rate of 4.78% through March 2018, and the balance of the $168,000 floats through March 2018. The entire $575,000 will float thereafter for the duration of the loan.


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https://cdn.kscope.io/d83f209fa0c1cf984946656b60e89cf3-vornado1.jpg

UNCONSOLIDATED JOINT VENTURES
(unaudited and in thousands)
 
 
 
 
 
 
As of December 31, 2017
 
 
 
 
 
 
 
 
Contractual Debt Balances
(non-GAAP)
Joint Venture Name
 
Asset
Category
 
Percentage
Ownership at
December 31, 2017
 
Company's
Carrying
Amount
 
Company's
Pro rata
Share
 
100% of
Joint Venture
Alexander's, Inc.
 
Office/Retail
 
32.4%
 
$
126,400

 
$
405,791

 
$
1,252,440

 
 
 
 
 
 
 
 
 
 
 
PREIT
 
Retail
 
8.0%
 
66,572

 
126,796

 
1,586,045

 
 
 
 
 
 
 
 
 
 
 
UE
 
Retail
 
4.5%
 
46,152

 
63,963

 
1,415,806

 
 
 
 
 
 
 
 
 
 
 
Partially owned office buildings/land:
 
 
 
 
 
 
 
 
 
 
One Park Avenue
 
Office/Retail
 
55.0%
 
128,213

 
165,000

 
300,000

280 Park Avenue
 
Office/Retail
 
50.0%
 
120,346

 
600,000

 
1,200,000

650 Madison Avenue
 
Office/Retail
 
20.1%
 
112,875

 
161,024

 
800,000

512 West 22nd Street
 
Office/Retail
 
55.0%
 
60,629

 
36,336

 
66,066

West 57th Street properties
 
Office/Retail/Land
 
50.0%
 
42,852

 
10,000

 
20,000

61 Ninth Avenue
 
Office/Retail
 
45.1%
 
29,455

 
23,983

 
53,178

825 Seventh Avenue
 
Office
 
50.0%
 
7,557

 
10,250

 
20,500

85 Tenth Avenue
 
Office/Retail
 
49.9%
 
(1,617
)
 
311,875

 
625,000

Other
 
Office/Retail
 
Various
 
4,083

 
17,465

 
50,150

 
 
 
 
 
 
 
 
 
 
 
Other investments:
 
 
 
 
 
 
 
 
 
 
Independence Plaza
 
Residential/Retail
 
50.1%
 
142,486

 
275,550

 
550,000

Rosslyn Plaza
 
Office/Residential
 
43.7% to 50.4%
 
43,376

 
19,118

 
37,925

666 Fifth Avenue Office Condominium
 
Office/Retail
 
49.5%
 
37,136

 
699,492

 
1,413,114

Moynihan Office Building
 
Office/Retail
 
50.1%
 
33,328

 
105,345

 
210,269

Other
 
Various
 
Various
 
56,986

 
1,972,288

 
6,390,075

 
 
 
 
 
 
$
1,056,829

 
$
5,004,276

 
$
15,990,568

 
 
 
 
 
 
 
 
 
 
 
330 Madison Avenue(1)
 
Office
 
25.0%
 
$
(53,999
)
 
$
125,000

 
$
500,000

7 West 34th Street(2)
 
Office/Retail
 
53.0%
 
(47,369
)
 
159,000

 
300,000

 
 
 
 
 
 
$
(101,368
)
 
$
284,000

 
$
800,000

____________________
(1)
Our negative basis resulted from a refinancing distribution and is included in "other liabilities" on our consolidated balance sheets.
(2)
Our negative basis results from a deferred gain from the sale of a 47.0% ownership interest in the property in May 2016 and is included in "other liabilities" on our consolidated balance sheets.



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UNCONSOLIDATED JOINT VENTURES
(unaudited and in thousands)
 
 
 
 
 
 
 
Percentage
Ownership at December 31, 2017
 
Our Share of Net Income (Loss) for the Three Months Ended December 31,
 
Our Share of NOI
(non-GAAP) for the
Three Months Ended December 31,
 
 
2017
 
2016
 
2017
 
2016
Joint Venture Name
 
 
 
 
 
 
 
 
 
New York:
 
 
 
 
 
 
 
 
 
Alexander's
32.4%
 
$
5,728

 
$
6,830

 
$
11,656

 
$
11,495

One Park Avenue
55.0%
 
2,208

 
856

 
5,272

 
3,673

Independence Plaza
50.1%
 
1,180

 
1,177

 
5,619

 
5,482

7 West 34th Street
53.0%
 
985

 
1,309

 
3,386

 
3,474

650 Madison Avenue
20.1%
 
(962
)
 
(1,010
)
 
2,581

 
2,595

280 Park Avenue
50.0%
 
(807
)
 
(723
)
 
9,654

 
8,571

330 Madison Avenue
25.0%
 
740

 
1,341

 
2,818

 
2,332

825 Seventh Avenue
50.0%
 
674

 
685

 
832

 
842

85 Tenth Avenue(1)
49.9%
 
(499
)
 

 
4,738

 

West 57th Street Properties
50.0%
 
(131
)
 
28

 
208

 
325

Moynihan Office Building
50.1%
 
(89
)
 

 
(89
)
 

Other, net
Various
 
(886
)
 
140

 
634

 
1,316

 
 
 
8,141

 
10,633

 
47,309

 
40,105

 
 
 
 
 
 
 
 
 
 
Other:
 
 
 
 
 
 
 
 
 
666 Fifth Avenue Office Condominium
49.5%
 
(3,042
)
 
(7,869
)
 
5,433

 
5,322

Alexander's corporate fee income
32.4%
 
1,682

 
1,463

 
1,682

 
1,463

UE
4.5%
 
1,017

 
1,316

 
3,014

 
3,159

Rosslyn Plaza(2)
43.7% to 50.4%
 
(422
)
 
(901
)
 
851

 
1,015

PREIT
8.0%
 
155

 
(450
)
 
5,046

 
5,523

Suffolk Downs
21.2%
 
(23
)
 
394

 
(23
)
 
429

85 Tenth Avenue(1)
 
49.9%
 

 
172,553

 

 
13,766

Other, net(2)
Various
 
2,114

 
(12,083
)
(3) 
4,472

 
3,000

 
 
 
1,481

 
154,423

 
20,475

 
33,677

 
 
 
 
 
 
 
 
 
 
 
 
 
$
9,622

 
$
165,056

 
$
67,784

 
$
73,782

 
 
 
 
 
 
 
 
 
 
____________________
(1)
2016 includes $160,843 of income from the repayment of our investments in 85 Tenth Avenue loans and preferred equity.
(2)
Our 43.7% to 50.4% interests in Rosslyn Plaza and our 7.5% interest in Fashion Centre Mall/Washington Tower were not included in the spin-off of our Washington, DC segment and have been reclassified to Other. The prior year's presentation has been conformed to the current year.
(3)
2016 includes $13,962 of non-cash impairment loss related to India real estate ventures.


- 24 -


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UNCONSOLIDATED JOINT VENTURES
(unaudited and in thousands)
 
Percentage
Ownership at
December 31, 2017
 
Our Share of Net Income (Loss) for the
Twelve Months Ended December 31,
 
Our Share of NOI
(non-GAAP) for the
Twelve Months Ended December 31,
 
 
2017
 
2016
 
2017
 
2016
Joint Venture Name
 
 
 
 
 
 
 
 
 
New York:
 
 
 
 
 
 
 
 
 
Alexander's
32.4%
 
$
25,820

 
$
27,470

 
$
47,302

 
$
47,295

280 Park Avenue
50.0%
 
(7,289
)
 
(4,850
)
 
36,407

 
32,436

One Park Avenue
55.0%
 
5,565

 
3,370

 
17,528

 
14,492

650 Madison Avenue
20.1%
 
(4,774
)
 
(4,820
)
 
9,511

 
9,546

Independence Plaza
50.1%
 
4,345

 
5,256

 
21,930

 
22,044

330 Madison Avenue
25.0%
 
4,150

 
5,934

 
10,121

 
9,735

7 West 34th Street
53.0%
 
3,053

 
3,032

 
13,543

 
8,257

825 Seventh Avenue
50.0%
 
2,673

 
2,770

 
3,325

 
3,408

85 Tenth Avenue(1)
49.9%
 
(1,290
)
 

 
19,153

 

West 57th Street Properties
50.0%
 
(131
)
 
84

 
1,086

 
1,291

Moynihan Office Building
50.1%
 
(89
)
 

 
(89
)
 

Other, net
Various
 
(2,474
)
 
907

 
4,082

 
5,426

 
 
 
29,559

 
39,153

 
183,899

 
153,930

 
 
 
 
 
 
 
 
 
 
Other:
 
 
 
 
 
 
 
 
 
PREIT(2)
8.0%
 
(53,325
)
 
(5,213
)
 
21,071

 
22,754

UE(3)
4.5%
 
27,328

 
5,839

 
14,479

 
12,518

Suffolk Downs(4)
21.2%
 
26,360

 
(544
)
 
235

 
558

666 Fifth Avenue Office Condominium
49.5%
 
(25,414
)
 
(41,532
)
 
20,636

 
25,004

Alexander's corporate fee income
32.4%
 
6,033

 
6,770

 
6,033

 
6,770

Rosslyn Plaza(5)
43.7% to 50.4%
 
(774
)
 
(3,668
)
 
4,187

 
4,062

85 Tenth Avenue(1)
49.9%
 

 
178,072

(1) 

 
27,889

Other, net(5)
Various
 
5,433

 
(9,929
)
(6) 
13,196

 
12,173

 
 
 
(14,359
)
 
129,795

 
79,837

 
111,728

 
 
 
 
 
 
 
 
 
 
 
 
 
$
15,200

 
$
168,948

 
$
263,736

 
$
265,658

 
 
 
 
 
 
 
 
 
 
____________________
(1)
2016 includes $160,843 of income from the repayment of our investments in 85 Tenth Avenue loans and preferred equity.
(2)
Based on PREIT’s September 29, 2017 quarter ended closing share price of $10.49, the market value (“fair value” pursuant to ASC Topic 820, Fair Value Measurements) of our investment in PREIT was $65,563 or $44,465 below the carrying amount on our consolidated balance sheet. We concluded that our investment in PREIT was “other-than-temporarily” impaired and recorded a $44,465 non-cash impairment loss on our consolidated statements of income. Our conclusion was based on a sustained trading value of PREIT stock below our carrying amount and our inability to forecast a recovery in the near-term.
(3)
2017 includes a $21,100 net gain resulting from UE operating partnership unit issuances.
(4)
In the second quarter of 2017, we recognized $26,687 of net gains, comprised of $15,314 representing our share of a net gain on the sale of Suffolk Downs and $11,373 representing the net gain on repayment of our debt investments in Suffolk Downs JV.
(5)
Our 43.7% to 50.4% interests in Rosslyn Plaza and our 7.5% interest in Fashion Centre Mall/Washington Tower were not included in the spin-off of our Washington, DC segment and have been reclassified to Other. The prior year's presentation has been conformed to the current year.
(6)
2016 includes $13,962 of non-cash impairment loss related to India real estate ventures.


- 25 -


https://cdn.kscope.io/d83f209fa0c1cf984946656b60e89cf3-vornado1.jpg

SQUARE FOOTAGE
(unaudited and square feet in thousands)
 
 
 
At Vornado's Share
 
At
100%
 
 
 
Under Development
 
In Service
 
 
Total
 
 
Office
 
Retail
 
Showroom
 
Other
Segment:
 
 
 
 
 
 
 
 
 
 
 
 
 
New York:
 
 
 
 
 
 
 
 
 
 
 
 
 
Office
21,329

 
17,521

 
539

 
16,799

 

 
183

 

Retail
2,931

 
2,593

 
122

 

 
2,471

 

 

Residential - 1,697 units
1,568

 
835

 

 

 

 

 
835

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

 
790

 

 
288

 
419

 

 
83

Hotel Pennsylvania
1,400

 
1,400

 

 

 

 

 
1,400

 
29,665

 
23,139

 
661

 
17,087

 
2,890

 
183

 
2,318

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Other:
 
 
 
 
 
 
 
 
 
 
 
 
 
theMART
3,689

 
3,680

 

 
2,010

 
109

 
1,561

 

555 California Street (70% interest)
1,805

 
1,264

 
45

 
1,189

 
30

 

 

Other
4,280

 
2,050

 
862

 
214

 
863

 

 
111

 
9,774

 
6,994

 
907

 
3,413

 
1,002

 
1,561

 
111

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total square feet at December 31, 2017
39,439

 
30,133

 
1,568

 
20,500

 
3,892

 
1,744

 
2,429

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total square feet at September 30, 2017
39,433

 
30,134

 
1,580

 
20,486

 
3,902

 
1,737

 
2,429

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

 
11

 
4,970

 
 
 
 
 
 
 
 
theMART
558

 
4

 
1,651

 
 
 
 
 
 
 
 
555 California Street
168

 
1

 
453

 
 
 
 
 
 
 
 
Rosslyn Plaza
411

 
4

 
1,094

 
 
 
 
 
 
 
 
Total at December 31, 2017
2,823

 
20

 
8,168

 
 
 
 
 
 
 
 


- 26 -


https://cdn.kscope.io/d83f209fa0c1cf984946656b60e89cf3-vornado1.jpg

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

 
$
57,162

 
2.3
%
Facebook
 
435,561

 
40,781

 
1.6
%
Swatch Group USA
 
25,633

 
39,791

 
1.6
%
Macy's
 
646,434

 
37,886

 
1.5
%
Victoria's Secret (guaranteed by L Brands, Inc.)
 
91,427

 
34,337

 
1.4
%
Bloomberg L.P.
 
287,898

 
33,202

 
1.3
%
AXA Equitable Life Insurance
 
336,646

 
32,581

 
1.3
%
Google/Motorola Mobility (guaranteed by Google)
 
728,483

 
31,717

 
1.3
%
Ziff Brothers Investments, Inc.
 
287,030

 
30,225

 
1.2
%
McGraw-Hill Companies, Inc.
 
479,557

 
29,810

 
1.2
%
Oath - formerly AOL (Verizon)
 
327,138

 
29,747

 
1.2
%
The City of New York
 
565,846

 
24,997

 
1.0
%
AMC Networks, Inc.
 
404,920

 
24,583

 
1.0
%
Topshop
 
94,349

 
23,669

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

 
23,549

 
0.9
%
Fast Retailing (Uniqlo)
 
90,732

 
22,867

 
0.9
%
Madison Square Garden
 
348,757

 
22,522

 
0.9
%
Forever 21
 
127,779

 
22,420

 
0.9
%
Neuberger Berman Group LLC
 
288,325

 
22,231

 
0.9
%
J. Crew
 
250,635

 
21,089

 
0.8
%
JCPenney
 
426,370

 
19,739

 
0.8
%
Hollister
 
21,741

 
19,575

 
0.8
%
Bank of America
 
232,728

 
18,658

 
0.7
%
PwC
 
243,434

 
17,137

 
0.7
%
Alston & Bird LLP
 
163,883

 
13,951

 
0.6
%
New York University
 
258,395

 
13,688

 
0.5
%
U.S. Government
 
578,711

 
13,458

 
0.5
%
Bryan Cave LLP
 
150,669

 
12,689

 
0.5
%
Information Builders, Inc.
 
229,064

 
12,423

 
0.5
%
Integrated Holdings Group
 
131,565

 
11,672

 
0.5
%
 
 
 
 
 
 
30.2
%
____________________
(1) Includes leases not yet commenced.
(2) See reconciliation of consolidated revenues to our pro rata share of total annualized revenues on page xiv in Appendix: Non-GAAP Reconciliations.

- 27 -


https://cdn.kscope.io/d83f209fa0c1cf984946656b60e89cf3-vornado1.jpg

LEASE EXPIRATIONS
NEW YORK SEGMENT
(unaudited)
 
Period of Lease
Expiration
 
Our Share of
Square Feet
of Expiring
Leases(1)
 
Weighted Average Annual
Rent of Expiring Leases
 
Percentage of
Annualized
Escalated Rent
 
 
 
Total
 
Per Sq. Ft.
 
Office:
Month to Month
 
73,000

 
$
3,086,000

 
$
42.27

 
0.3
%
 
 
 
 
 
 
 
 
 
 
 
First Quarter 2018
 
296,000

 
19,625,000

 
66.30

 
1.7
%
 
Second Quarter 2018
 
201,000

 
15,212,000

 
75.68

 
1.3
%
 
Third Quarter 2018
 
74,000

 
6,376,000

 
86.16

 
0.6
%
 
Fourth Quarter 2018
 
325,000

 
25,736,000

 
79.19

 
2.3
%
 
Total 2018
 
896,000

 
66,949,000

 
74.72

 
5.9
%
 
2019
 
750,000

 
51,029,000

 
68.04

 
4.5
%
 
2020
 
1,394,000

 
96,261,000

 
69.05

 
8.5
%
 
2021
 
1,160,000

 
85,881,000

 
74.04

 
7.6
%
 
2022
 
792,000

 
48,215,000

 
60.88

 
4.3
%
 
2023
 
2,001,000

 
152,874,000

 
76.40

 
13.5
%
 
2024
 
1,292,000

 
101,263,000

 
78.38

 
9.0
%
 
2025
 
800,000

 
58,916,000

 
73.65

 
5.2
%
 
2026
 
1,376,000

 
101,555,000

 
73.80

 
9.0
%
 
2027
 
996,000

 
68,674,000

 
68.95

 
6.1
%
 
Thereafter
 
4,766,000

 
295,074,000

 
61.91

 
26.1
%
 
 
 
 
 
 
 
 
 
 
Retail:
Month to Month
 
97,000

 
$
3,461,000

 
$
35.68

 
0.8
%
 
 
 
 
 
 
 
 
 
 
 
First Quarter 2018
 
25,000

 
7,565,000

 
302.60

 
1.7
%
 
Second Quarter 2018
 
21,000

 
3,156,000

 
150.29

 
0.7
%
 
Third Quarter 2018
 
42,000

 
15,954,000

 
379.86

 
3.7
%
 
Fourth Quarter 2018
 
8,000

 
1,482,000

 
211.71

 
0.3
%
 
Total 2018
 
96,000

 
28,157,000

 
293.30

 
6.4
%
 
2019
 
204,000

 
35,085,000

 
171.99

 
8.0
%
 
2020
 
69,000

 
10,388,000

 
150.55

 
2.4
%
 
2021
 
67,000

 
11,613,000

 
173.33

 
2.7
%
 
2022
 
19,000

 
4,913,000

 
258.58

 
1.1
%
 
2023
 
90,000

 
38,199,000

 
424.43

 
8.8
%
 
2024
 
155,000

 
63,852,000

 
411.95

 
14.6
%
 
2025
 
41,000

 
17,777,000

 
433.59

 
4.1
%
 
2026
 
135,000

 
42,626,000

 
315.75

 
9.8
%
 
2027
 
31,000

 
21,204,000

 
684.00

 
4.9
%
 
Thereafter
 
916,000

 
158,646,000

 
173.19

 
36.4
%
____________________
(1) Excludes storage, vacancy and other.

- 28 -


https://cdn.kscope.io/d83f209fa0c1cf984946656b60e89cf3-vornado1.jpg

LEASE EXPIRATIONS
theMART
(unaudited)
 
Period of Lease
Expiration
 
Our Share of
Square Feet
of Expiring
Leases(1)
 
Weighted Average Annual
Rent of Expiring Leases
 
Percentage of
Annualized
Escalated Rent
 
 
 
Total
 
Per Sq. Ft.
 
Office / Showroom / Retail:
Month to Month
 
23,000

 
$
1,042,000

 
$
45.30

 
0.7
%
 
 
 
 
 
 
 
 
 
 
 
First Quarter 2018
 
30,000

 
1,460,000

 
48.67

 
1.0
%
 
Second Quarter 2018
 
15,000

 
728,000

 
48.53

 
0.5
%
 
Third Quarter 2018
 
182,000

 
6,728,000

 
36.97

 
4.5
%
 
Fourth Quarter 2018
 
50,000

 
2,302,000

 
46.04

 
1.5
%
 
Total 2018
 
277,000

 
11,218,000

 
40.50

 
7.5
%
 
2019
 
162,000

 
8,146,000

 
50.28

 
5.4
%
 
2020
 
295,000

 
13,064,000

 
44.28

 
8.7
%
 
2021
 
350,000

 
15,030,000

 
42.94

 
10.0
%
 
2022
 
609,000

 
25,990,000

 
42.68

 
17.3
%
 
2023
 
247,000

 
10,777,000

 
43.63

 
7.1
%
 
2024
 
217,000

 
8,776,000

 
40.44

 
5.8
%
 
2025
 
307,000

 
13,969,000

 
45.50

 
9.3
%
 
2026
 
176,000

 
7,702,000

 
43.76

 
5.1
%
 
2027
 
112,000

 
4,972,000

 
44.39

 
3.3
%
 
Thereafter
 
789,000

 
29,817,000

 
37.79

 
19.8
%
____________________
(1) Excludes storage, vacancy and other.



- 29 -


https://cdn.kscope.io/d83f209fa0c1cf984946656b60e89cf3-vornado1.jpg

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

 
$

 
$

 
%
 
 
 
 
 
 
 
 
 
 
 
First Quarter 2018
 

 

 

 
%
 
Second Quarter 2018
 
6,000

 
364,000

 
60.67

 
0.4
%
 
Third Quarter 2018
 
2,000

 
148,000

 
74.00

 
0.2
%
 
Fourth Quarter 2018
 

 

 

 
%
 
Total 2018
 
8,000

 
512,000

 
64.00

 
0.6
%
 
2019
 
47,000

 
3,324,000

 
70.72

 
4.1
%
 
2020
 
101,000

 
6,247,000

 
61.85

 
7.7
%
 
2021
 
68,000

 
4,587,000

 
67.46

 
5.6
%
 
2022
 
37,000

 
2,765,000

 
74.73

 
3.4
%
 
2023
 
132,000

 
9,007,000

 
68.23

 
11.1
%
 
2024
 
79,000

 
6,433,000

 
81.43

 
7.9
%
 
2025
 
343,000

 
23,274,000

 
67.85

 
28.6
%
 
2026
 
95,000

 
6,402,000

 
67.39

 
7.9
%
 
2027
 
65,000

 
5,164,000

 
79.45

 
6.4
%
 
Thereafter
 
145,000

 
13,593,000

 
93.74

 
16.7
%
____________________
(1) Excludes storage, vacancy and other.




- 30 -


https://cdn.kscope.io/d83f209fa0c1cf984946656b60e89cf3-vornado1.jpg

LEASING ACTIVITY
(unaudited)

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

(square feet in thousands)
 
 
 
 
 
 
 
 
 
 
New York
 
 
 
555 California
Street
 
 
Office
 
Retail
 
theMART
 
Three Months Ended December 31, 2017
 
 
 
 
 
 
 
 
Total square feet leased
 
319

 
39

 
118

 
153

Our share of square feet leased:
 
281

 
29

 
118

 
107

Initial rent (1)
 
$
76.07

 
$
412.74

 
$
46.13

 
$
95.73

Weighted average lease term (years)
 
7.0

 
11.4

 
6.1

 
5.3

Second generation relet space:
 
 
 
 
 
 
 
 
Square feet
 
205

 
17

 
112

 
106

GAAP basis:
 
 
 
 
 
 
 
 
Straight-line rent (2)
 
$
75.85

 
$
205.33

 
$
46.83

 
$
101.46

Prior straight-line rent
 
$
70.69

 
$
123.24

 
$
39.12

 
$
80.09

Percentage increase
 
7.3
%
 
66.6
%
 
19.7
%
 
26.7
%
Cash basis (non-GAAP):
 
 
 
 
 
 
 
 
Initial rent (1)
 
$
78.02

 
$
181.52

 
$
46.23

 
$
97.45

Prior escalated rent
 
$
72.98

 
$
117.40

 
$
42.50

 
$
87.40

Percentage increase
 
6.9
%
 
54.6
%
 
8.8
%
 
11.5
%
Tenant improvements and leasing commissions:
 
 
 
 
 
 
 
 
Per square foot
 
$
71.35

 
$
332.74

 
$
17.79

 
$
41.94

Per square foot per annum
 
$
10.19

 
$
29.19

 
$
2.92

 
$
7.91

Percentage of initial rent
 
13.4
%
 
7.1
%
 
6.3
%
 
8.3
%
____________________
(1)
Represents the cash basis weighted average starting rent per square foot, which is generally indicative of market rents.  Most leases include free rent and periodic step-ups in rent which are not included in the initial cash basis rent per square foot but are included in the GAAP basis straight-line rent per square foot.
(2)
Represents the GAAP basis weighted average rent per square foot that is recognized over the term of the respective leases, and includes the effect of free rent and periodic step-ups in rent.

- 31 -


https://cdn.kscope.io/d83f209fa0c1cf984946656b60e89cf3-vornado1.jpg

LEASING ACTIVITY
(unaudited)
The leasing activity and related statistics in the table below is based on leases signed during the period and are not intended to coincide with the commencement of rental revenue in accordance with GAAP.  Second generation relet space represents square footage that has not been vacant for more than nine months and tenant improvements and leasing commissions are based on our share of square feet leased during the period.
(square feet in thousands)
 
 
 
 
 
 
 
 
 
 
New York
 
 
 
555 California
Street
 
 
Office
 
Retail
 
theMART
 
Year Ended December 31, 2017
 
 
 
 
 
 
 
 
Total square feet leased
 
1,867

 
126

 
345

 
285

Our share of square feet leased:
 
1,469

 
97

 
345

 
200

Initial rent (1)
 
$
78.72

 
$
318.67

 
$
47.60

 
$
88.42

Weighted average lease term (years)
 
8.1

 
7.6

 
6.6

 
7.2

Second generation relet space:
 
 
 
 
 
 
 
 
Square feet
 
1,018

 
61

 
319

 
152

GAAP basis:
 
 
 
 
 
 
 
 
Straight-line rent (2)
 
$
74.28

 
$
171.74

 
$
47.93

 
$
99.53

Prior straight-line rent
 
$
65.85

 
$
135.81

 
$
38.04

 
$
80.15

Percentage increase
 
12.8
%
 
26.5
%
 
26.0
%
 
24.2
%
Cash basis (non-GAAP):
 
 
 
 
 
 
 
 
Initial rent (1)
 
$
76.03

 
$
159.53

 
$
47.55

 
$
94.14

Prior escalated rent
 
$
69.19

 
$
127.18

 
$
40.77

 
$
84.76

Percentage increase
 
9.9
%
 
25.4
%
 
16.6
%
 
11.1
%
Tenant improvements and leasing commissions:
 
 
 
 
 
 
 
 
Per square foot
 
$
73.97

 
$
209.76

 
$
33.86

 
$
74.38

Per square foot per annum
 
$
9.13

 
$
27.60

 
$
5.13

 
$
10.33

Percentage of initial rent
 
11.6
%
 
8.7
%
 
10.8
%
 
11.7
%
____________________
(1)
Represents the cash basis weighted average starting rent per square foot, which is generally indicative of market rents.  Most leases include free rent and periodic step-ups in rent which are not
included in the initial cash basis rent per square foot but are included in the GAAP basis straight-line rent per square foot.
(2)
Represents the GAAP basis weighted average rent per square foot that is recognized over the term of the respective leases, and includes the effect of free rent and periodic step-ups in rent.









- 32 -


https://cdn.kscope.io/d83f209fa0c1cf984946656b60e89cf3-vornado1.jpg

LEASING ACTIVITY
(unaudited)

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

(square feet in thousands)
 
 
 
 
 
 
 
 
 
 
New York
 
 
 
555 California
Street
 
 
Office
 
Retail
 
theMART
 
Year Ended December 31, 2016
 
 
 
 
 
 
 
 
Total square feet leased
 
2,241

 
111

 
270

 
151

Our share of square feet leased:
 
1,842

 
90

 
269

 
106

Initial rent (1)
 
$
72.56

 
$
285.17

 
$
48.16

 
$
77.25

Weighted average lease term (years)
 
8.8

 
9.1

 
6.4

 
8.4

Second generation relet space:
 
 
 
 
 
 
 
 
Square feet
 
1,667

 
69

 
221

 
69

GAAP basis:
 
 
 
 
 
 
 
 
Straight-line rent (2)
 
$
71.52

 
$
204.95

 
$
50.74

 
$
82.69

Prior straight-line rent
 
$
59.75

 
$
166.14

 
$
40.43

 
$
66.92

Percentage increase
 
19.7
%
 
23.4
%
 
25.5
%
 
23.6
%
Percentage increase inclusive of 3 square foot Dyson lease at 640 Fifth Avenue
 
 
 
94.9
%
 
 
 
 
Cash basis (non-GAAP):
 
 
 
 
 
 
 
 
Initial rent (1)
 
$
71.82

 
$
194.35

 
$
49.65

 
$
79.69

Prior escalated rent
 
$
61.62

 
$
173.70

 
$
43.43

 
$
66.51

Percentage increase
 
16.6
%
 
11.9
%
 
14.3
%
 
19.8
%
Percentage increase inclusive of 3 square foot Dyson lease at 640 Fifth Avenue
 
 
 
70.1
%
 
 
 
 
Tenant improvements and leasing commissions:
 
 
 
 
 
 
 
 
Per square foot
 
$
64.44

 
$
184.74

 
$
35.62

 
$
76.29

Per square foot per annum
 
$
7.32

 
$
20.30

 
$
5.57

 
$
9.08

Percentage of initial rent
 
10.1
%
 
7.1
%
 
11.6
%
 
11.8
%
____________________
(1)
Represents the cash basis weighted average starting rent per square foot, which is generally indicative of market rents.  Most leases include free rent and periodic step-ups in rent which are not included in the initial cash basis rent per square foot but are included in the GAAP basis straight-line rent per square foot.
(2)
Represents the GAAP basis weighted average rent per square foot that is recognized over the term of the respective leases, and includes the effect of free rent and periodic step-ups in rent.



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https://cdn.kscope.io/d83f209fa0c1cf984946656b60e89cf3-vornado1.jpg

OCCUPANCY, SAME STORE NOI AT SHARE AND NOI AT SHARE - CASH BASIS (NON-GAAP)
(unaudited)
 
 
 
 
 
 
New York
 
theMART
 
555 California
Street
Occupancy rate at:
 
 
 
 
 
December 31, 2017
97.2
%
 
98.6
%
 
94.2
%
September 30, 2017
96.9
%
 
98.7
%
 
94.2
%
December 31, 2016
96.5
%
 
98.9
%
 
92.4
%
Same store NOI at share % increase (decrease)(1):
 
 
 
 
 
Three months ended December 31, 2017 compared to December 31, 2016
2.8
%
 
7.1
 %
 
10.4
%
Year ended December 31, 2017 compared to December 31, 2016
2.7
%
 
4.2
 %
(2) 
1.9
%
Three months ended December 31, 2017 compared to September 30, 2017
1.8
%
 
(7.1
)%
(3) 
4.2
%
 
 
 
 
 
 
Same store NOI at share - cash basis % increase (decrease)(1):
 
 
 
 
 
Three months ended December 31, 2017 compared to December 31, 2016
7.0
%
 
13.7
 %
 
32.4
%
Year ended December 31, 2017 compared to December 31, 2016
11.3
%
 
7.6
 %
(2) 
36.0
%
Three months ended December 31, 2017 compared to September 30, 2017
1.7
%
 
(4.4
)%
(3) 
9.4
%
____________________
(1)
See pages viii through xiii in the Appendix: Non-GAAP reconciliations for same store NOI reconciliations.
(2)
The year ended December 31, 2016 includes a $2,000,000 reversal of an expense accrued in 2015. Excluding this amount, same store NOI increased by 6.4% and same store NOI - cash basis increased by 10.0%.
(3)
Excluding tradeshows seasonality, same store NOI increased by 0.3% and same store NOI - cash basis increased by 3.9%.
RESIDENTIAL STATISTICS in service
(unaudited)
 
 
 
Vornado's Ownership Interest
 
Number of Units
 
Number of Units
 
Occupancy Rate
 
Average Monthly
Rent Per Unit
New York:
 
 
 
 
 
 
 
December 31, 2017
2,009
 
981
 
96.7%
 
$3,722
September 30, 2017
2,008
 
980
 
94.4%
 
$3,642
December 31, 2016
2,004
 
977
 
95.7%
 
$3,576




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https://cdn.kscope.io/d83f209fa0c1cf984946656b60e89cf3-vornado1.jpg

DEVELOPMENT/REDEVELOPMENT SUMMARY - AS OF DECEMBER 31, 2017
(unaudited and in thousands, except square feet)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(At Share)
 
 
 
 
 
 
 
 
 
Full
Quarter
Stabilized
Operations
 
 
 
 
Property
Rentable
Sq. Ft.
 
Excluding Land Costs
 
 
 
 
 
 
 
Initial
Occupancy
 
Current Projects:
 
Segment
 
 
Incremental
Budget
 
Amount
Expended
 
 
 
%
Complete
 
Start
 
 
220 Central Park South - residential condominiums
 
Other
 
397,000

 
$
1,400,000

 
$
890,000

 
(1) 
 
63.6%
 
Q3 2012
 
N/A
 
N/A
Moynihan Office Building - (50.1% interest)(2)
 
New York
 
850,000

 
400,000

 
20,862

 
 
 
5.2%
 
Q2 2017
 
Q3 2020
 
Q2 2022
61 Ninth Avenue - office/retail (45.1% interest)(3)
 
New York
 
170,000

 
69,000

 
47,482

 
 
 
68.8%
 
Q1 2016
 
Q1 2018
 
Q2 2019
512 West 22nd Street - office/retail (55.0% interest)
 
New York
 
173,000

 
72,000

 
40,640

 
(4) 
 
56.4%
 
Q4 2015
 
Q3 2018
 
Q1 2020
345 Montgomery Street (555 California Street) (70.0% interest)
 
Other
 
64,000

 
32,000

 
1,904

 
(5) 
 
6.0%
 
Q1 2018
 
Q3 2019
 
Q3 2020
606 Broadway - office/retail (50.0% interest)
 
New York
 
34,000

 
30,000

 
17,095

 
(6) 
 
57.0%
 
Q2 2016
 
Q4 2018
 
Q2 2020
825 Seventh Avenue - office (50.0% interest)
 
New York
 
165,000

 
15,000

 
915

 
 
 
6.1%
 
Q2 2018
 
Q1 2020
 
Q1 2021
One Penn Plaza - renovation
 
New York
 
2,530,000

 
 
 
1,610

 
 
 
 
 
Q4 2017
 
N/A
 
N/A
Total current projects
 
 
 
 
 
 

 
$
1,020,508

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Future Opportunities:
 
Segment
 
Property
Zoning
Sq. Ft.
 
 
 
 
 
 
 

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

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

 
 
 
 
 
 
 
 
 
 
 
 
 
 
260 Eleventh Avenue - office    
 
New York
 
300,000

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Undeveloped Land:
 
 
 
 

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

 
 
 
 
 
 
 
 
 
 
 
 
 
 
527 West Kinzie, Chicago
 
Other
 
330,000

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total undeveloped land
 
 
 
480,000

 
 
 
 
 
 
 
 
 
 
 
 
 
 
____________________
(1) Excludes land cost of $515,426.
(2) Excludes $115,230 for our share of the upfront contribution of $230,000. The building is subject to a ground lease which expires in 2116.
(3) The building is subject to a ground lease which expires in 2115.
(4) Excludes land and acquisition costs of $57,000.
(5) Excludes land and building costs of $31,000.
(6) Excludes land and acquisition costs of $22,703.



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CAPITAL EXPENDITURES,
TENANT IMPROVEMENTS AND LEASING COMMISSIONS
 
CONSOLIDATED
 
(unaudited and in thousands, except per square foot amounts)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Year Ended December 31,
 
 
 
2017
 
2016
 
2015
 
Capital expenditures (accrual basis):
 
 
 
 
 
 
 
Expenditures to maintain assets
 
$
100,556

 
$
114,031

 
$
125,215

 
Tenant improvements
 
89,696

 
86,630

 
153,696

 
Leasing commissions
 
30,165

 
38,938

 
50,081

 
Non-recurring capital expenditures
 
80,461

 
55,636

 
116,875

 
Total capital expenditures and leasing commissions (accrual basis)
 
300,878

 
295,235

 
445,867

 
Adjustments to reconcile to cash basis:
 
 
 
 
 
 
 
Expenditures in the current period applicable to prior periods
 
153,511

 
268,101

 
156,753

 
Expenditures to be made in future periods for the current period
 
(142,877
)
 
(117,910
)
 
(222,469
)
 
Total capital expenditures and leasing commissions (cash basis)
 
$
311,512

 
$
445,426

 
$
380,151

 
 
 
 
 
 
 
 
 
Our share of square feet leased
 
2,111

 
2,307

 
2,751

 
Tenant improvements and leasing commissions per square foot per annum
 
$
9.51

 
$
7.79

 
$
9.10

 
Percentage of initial rent
 
11.1
%
 
10.0
%
 
9.8
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Year Ended December 31,
 
 
 
2017
 
2016
 
2015
 
Development and redevelopment expenditures:
 
 
 
 
 
 
 
220 Central Park South
 
$
265,791

 
$
303,974

 
$
158,014

 
606 Broadway
 
15,997

 
4,234

 

 
90 Park Avenue
 
7,523

 
33,308

 
29,937

 
Penn Plaza
 
7,107

 
11,904

 
17,701

 
345 Montgomery Street (555 California Street)
 
5,950

 
434

 
114

 
theMART
 
5,682

 
24,788

 

 
304 Canal Street
 
3,973

 
5,941

 
1,405

 
Marriott Marquis Times Square - retail and signage
 
1,982

 
9,283

 
21,929

 
640 Fifth Avenue
 
1,648

 
46,282

 
17,899

 
Wayne Towne Center
 
1,478

 
8,461

 
20,633

 
330 West 34th Street
 
305

 
5,492

 
32,613

 
Other
 
38,416

 
152,464

(1) 
190,574

(1) 
 
 
$
355,852

 
$
606,565

 
$
490,819

 
____________________
(1)
Primarily relates to our former Washington, DC segment which was spun-off on July 17, 2017.



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https://cdn.kscope.io/d83f209fa0c1cf984946656b60e89cf3-vornado1.jpg

CAPITAL EXPENDITURES,
TENANT IMPROVEMENTS AND LEASING COMMISSIONS
NEW YORK SEGMENT
(unaudited and in thousands, except per square foot amounts)
 
 
 
 
 
 
 
 
 
Year Ended December 31,
 
 
2017
 
2016
 
2015
Capital expenditures (accrual basis):
 
 
 
 
 
 
Expenditures to maintain assets
 
$
73,745

 
$
67,239

 
$
57,752

Tenant improvements
 
42,475

 
63,995

 
68,869

Leasing commissions
 
21,183

 
32,475

 
35,099

Non-recurring capital expenditures
 
68,977

 
41,322

 
81,240

Total capital expenditures and leasing commissions (accrual basis)
 
206,380

 
205,031

 
242,960

Adjustments to reconcile to cash basis:
 
 
 
 
 
 
Expenditures in the current period applicable to prior periods
 
101,500

 
159,144

 
93,105

Expenditures to be made in future periods for the current period
 
(90,798
)
 
(100,151
)
 
(118,911
)
Total capital expenditures and leasing commissions (cash basis)
 
$
217,082

 
$
264,024

 
$
217,154

 
 
 
 
 
 
 
Our share of square feet leased
 
1,566

 
1,932

 
1,920

Tenant improvements and leasing commissions per square foot per annum
 
$
10.21

 
$
7.98

 
$
10.20

Percentage of initial rent
 
10.9
%
 
9.7
%
 
8.9
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Year Ended December 31,
 
 
2017
 
2016
 
2015
Development and redevelopment expenditures:
 
 
 
 
 
 
606 Broadway
 
$
15,997

 
$
4,234

 
$

90 Park Avenue
 
7,523

 
33,308

 
29,937

Penn Plaza
 
7,107

 
11,904

 
17,701

304 Canal Street
 
3,973

 
5,941

 
1,405

Marriott Marquis Times Square - retail and signage
 
1,982

 
9,283

 
21,929

640 Fifth Avenue
 
1,648

 
46,282

 
17,899

330 West 34th Street
 
305

 
5,492

 
32,613

Other
 
4,839

 
1,759

 
6,695

 
 
$
43,374

 
$
118,203

 
$
128,179



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https://cdn.kscope.io/d83f209fa0c1cf984946656b60e89cf3-vornado1.jpg

CAPITAL EXPENDITURES,
TENANT IMPROVEMENTS AND LEASING COMMISSIONS
theMART
(unaudited and in thousands)
 
 
 
 
 
 
 
 
Year Ended December 31,
 
 
2017
 
2016
 
2015
Capital expenditures (accrual basis):
 
 
 
 
 
 
Expenditures to maintain assets
 
$
11,725

 
$
16,343

 
$
33,958

Tenant improvements
 
9,423

 
6,722

 
30,246

Leasing commissions
 
1,190

 
1,355

 
7,175

Non-recurring capital expenditures
 
1,092

 
1,518

 
411

Total capital expenditures and leasing commissions (accrual basis)
 
23,430

 
25,938

 
71,790

Adjustments to reconcile to cash basis:
 
 
 
 
 
 
Expenditures in the current period applicable to prior periods
 
8,784

 
24,314

 
16,849

Expenditures to be made in future periods for the current period
 
(9,011
)
 
1,654

 
(37,949
)
Total capital expenditures and leasing commissions (cash basis)
 
$
23,203

 
$
51,906

 
$
50,690

 
 
 
 
 
 
 
Our share of square feet leased
 
345

 
269

 
762

Tenant improvements and leasing commissions per square foot per annum
 
$
5.13

 
$
5.57

 
$
6.02

Percentage of initial rent
 
10.8
%
 
11.6
%
 
15.6
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Year Ended December 31,
 
 
2017
 
2016
 
2015
Development and redevelopment expenditures:
 
 
 
 
 
 
Common area enhancements
 
$
5,682

 
$
24,788

 
$

Other
 
459

 
1,384

 
588

 
 
$
6,141

 
$
26,172

 
$
588



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https://cdn.kscope.io/d83f209fa0c1cf984946656b60e89cf3-vornado1.jpg

CAPITAL EXPENDITURES,
TENANT IMPROVEMENTS AND LEASING COMMISSIONS
555 CALIFORNIA STREET
 
 
 
 
 
 
(unaudited and in thousands)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Year Ended December 31,
 
 
2017
 
2016
 
2015
Capital expenditures (accrual basis):
 
 
 
 
 
 
Expenditures to maintain assets
 
$
7,893

 
$
5,704

 
$
7,916

Tenant improvements
 
6,652

 
3,201

 
3,084

Leasing commissions
 
2,147

 
1,041

 
1,046

Non-recurring capital expenditures
 
6,208

 
3,900

 
796

Total capital expenditures and leasing commissions (accrual basis)
 
22,900

 
13,846

 
12,842

Adjustments to reconcile to cash basis:
 
 
 
 
 
 
Expenditures in the current period applicable to prior periods
 
17,906

 
12,708

 
10,994

Expenditures to be made in future periods for the current period
 
(3,301
)
 
(3,056
)
 
7,618

Total capital expenditures and leasing commissions (cash basis)
 
$
37,505

 
$
23,498

 
$
31,454

 
 
 
 
 
 
 
Our share of square feet leased
 
200

 
106

 
69

Tenant improvements and leasing commissions per square foot per annum
 
$
10.33

 
$
9.08

 
$
8.13

Percentage of initial rent
 
11.7
%
 
11.8
%
 
9.7
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Year Ended December 31,
 
 
2017
 
2016
 
2015
Development and redevelopment expenditures:
 
 
 
 
 
 
345 Montgomery Street
 
$
5,950

 
$
434

 
$
114

Other
 
6,465

 
8,716

 
146

 
 
$
12,415

 
$
9,150

 
$
260



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https://cdn.kscope.io/d83f209fa0c1cf984946656b60e89cf3-vornado1.jpg

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

 
$
24,745

 
$
25,589

 
Tenant improvements
 
31,146

 
12,712

 
51,497

 
Leasing commissions
 
5,645

 
4,067

 
6,761

 
Non-recurring capital expenditures
 
4,184

 
8,896

 
34,428

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

 
50,420

 
118,275

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

 
71,935

 
35,805

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

 
$
105,998

 
$
80,853

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Year Ended December 31,
 
 
 
2017
 
2016
 
2015
 
Development and redevelopment expenditures:
 
 
 
 
 
 
 
220 Central Park South
 
$
265,791

 
$
303,974

 
$
158,014

 
Wayne Towne Center
 
1,478

 
8,461

 
20,633

 
Other
 
26,653

 
140,605

(2) 
183,145

(2) 
 
 
$
293,922

 
$
453,040

 
$
361,792

 
____________________
(1)
Effective July 17, 2017, the date of the spin-off of our Washington, DC segment, capital expenditures and leasing commissions by our former Washington, DC segment have been reclassified to the Other segment. We have reclassified the prior period capital expenditures and leasing commissions to conform to the current prior period presentation.
(2)
Primarily relates to our former Washington, DC segment which was spun-off on July 17, 2017.




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https://cdn.kscope.io/d83f209fa0c1cf984946656b60e89cf3-vornado1.jpg

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

 
 

 
 

 
 

 
 

 
 

 
 

 
 
Penn Plaza:
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 
One Penn Plaza
 
 

 
 

 
 
 
 
 
 
 
 
 
 
 
Cisco, Lion Resources,
(ground leased through 2098)
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
Parsons Brinckerhoff, Symantec Corporation,
-Office
 
100.0
%
 
91.7
%
 
$
63.73

 
2,259,000

 
2,259,000

 

 
 

 
United Health Care, URS Corporation Group Consulting
 
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
Bank of America, Kmart Corporation,
-Retail
 
100.0
%
 
99.2
%
 
133.10

 
271,000

 
271,000

 

 
 

 
Shake Shack, Starbucks
 
 
100.0
%
 
92.5
%
 
71.16

 
2,530,000

 
2,530,000

 

 
$

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Two Penn Plaza
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
EMC, Information Builders, Inc.,
-Office
 
100.0
%
 
98.7
%
 
59.32

 
1,589,000

 
1,589,000

 

 
575,000

 
Madison Square Garden, McGraw-Hill Companies, Inc.
-Retail
 
100.0
%
 
96.0
%
 
214.86

 
45,000

 
45,000

 

 

 
Chase Manhattan Bank
 
 
100.0
%
 
98.7
%
 
63.61

 
1,634,000

 
1,634,000

 

 
575,000

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Eleven Penn Plaza
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 
-Office
 
100.0
%
 
99.7
%
 
59.59

 
1,114,000

 
1,114,000

 

 
450,000

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

 
 

 
 

 
 

 
 

 
 

 
 

 
PNC Bank National Association, Starbucks,
-Retail
 
100.0
%
 
85.2
%
 
147.25

 
38,000

 
38,000

 

 

 
Madison Square Garden
 
 
100.0
%
 
99.2
%
 
62.48

 
1,152,000

 
1,152,000

 

 
450,000

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
100 West 33rd Street
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 
-Office
 
100.0
%
 
98.2
%
 
62.52

 
855,000

 
855,000

 

 
398,402

 
IPG and affiliates
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Manhattan Mall
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 
-Retail
 
100.0
%
 
97.4
%
 
129.60

 
256,000

 
256,000

 

 
181,598

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

 
 

 
 

 
 

 
 

 
 

 
 

 
 
(ground leased through 2149 -
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 
34.8% ownership interest in the land)
 
 

 
 

 
 

 
 
 
 
 
 
 
 
 
New York & Company, Inc., Structure Tone,
-Office
 
100.0
%
 
95.0
%
 
62.25

 
691,000

 
691,000

 

 
50,150

 
Deutsch, Inc., Web.com, Footlocker, Home Advisor, Inc.
-Retail
 
100.0
%
 

 

 
18,000

 
18,000

 

 

 
 
 
 
100.0
%
 
92.6
%
 
62.25

 
709,000

 
709,000

 

 
50,150

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
435 Seventh Avenue
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 
-Retail
 
100.0
%
 
100.0
%
 
n/a

 
43,000

 
43,000

 

 
96,780

 
Hennes & Mauritz
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
7 West 34th Street
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 
-Office
 
53.0
%
 
100.0
%
 
65.06

 
458,000

 
458,000

 

 
300,000

 
Amazon
-Retail
 
53.0
%
 
71.8
%
 
293.50

 
21,000

 
21,000

 

 

 
Amazon
 
 
53.0
%
 
98.8
%
 
75.07

 
479,000

 
479,000

 

 
300,000

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
484 Eighth Avenue
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 
-Retail
 
100.0
%
 

 

 
16,000

 

 
16,000

 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
431 Seventh Avenue
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 
-Retail
 
100.0
%
 
100.0
%
 
263.93

 
10,000

 
10,000

 

 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
488 Eighth Avenue
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 
-Retail
 
100.0
%
 
100.0
%
 
88.30

 
6,000

 
6,000

 

 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
267 West 34th Street
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 
-Retail
 
100.0
%
 

 

 
6,000

 

 
6,000

 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

- 41 -


https://cdn.kscope.io/d83f209fa0c1cf984946656b60e89cf3-vornado1.jpg

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

 
 

 
 

 
 

 
 

 
 

 
 

 
 
Penn Plaza (Continued):
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 
138-142 West 32nd Street
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 
-Retail
 
100.0
%
 
35.3
%
 
$
66.84

 
8,000

 
8,000

 

 
$

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
150 West 34th Street
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 
-Retail
 
100.0
%
 
100.0
%
 
71.89

 
78,000

 
78,000

 

 
205,000

 
Old Navy
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
137 West 33rd Street
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 
-Retail
 
100.0
%
 
100.0
%
 
93.76

 
3,000

 
3,000

 

 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
265 West 34th Street
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 
-Retail
 
100.0
%
 

 

 
3,000

 

 
3,000

 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
131-135 West 33rd Street
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 
-Retail
 
100.0
%
 
100.0
%
 
41.90

 
23,000

 
23,000

 

 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
486 Eighth Avenue
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 
-Retail
 
100.0
%
 

 

 
3,000

 

 
3,000

 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Penn Plaza
 
 

 
 

 
 
 
7,814,000

 
7,786,000

 
28,000

 
2,256,930

 
 
Midtown East:
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 
909 Third Avenue
 
 

 
 

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

 
 

 
 
 
 
 
 
 
 
 
 
 
Geller & Company, Morrison Cohen LLP, Robeco USA Inc.,
-Office
 
100.0
%
 
97.6
%
 
60.05

(3) 
1,347,000

 
1,347,000

 

 
350,000

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

 
 

 
 

 
 
 
 
 
 
 
 

 
 
(ground leased through 2098)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
-Office
 
100.0
%
 
94.7
%
 
74.29

 
539,000

 
539,000

 

 
 

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

 
3,000

 
3,000

 

 
 

 
 
 
 
100.0
%
 
94.3
%
 
73.98

 
542,000

 
542,000

 

 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
715 Lexington Avenue
 
 

 
 

 
 
 
 
 
 
 
 
 
 
 
 
-Retail
 
100.0
%
 
35.9
%
 
247.77

 
23,000

 
23,000

 

 

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

 
 

 
 

 
 

 
 

 
 

 
 

 
 
-Retail
 
100.0
%
 
100.0
%
 
93.45

 
7,000

 
7,000

 

 

 
McDonald's
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
968 Third Avenue
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 
-Retail
 
50.0
%
 

 

 
6,000

 
6,000

 

 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Midtown East
 
 

 
 

 
 
 
1,925,000

 
1,925,000




350,000

 
 

- 42 -


https://cdn.kscope.io/d83f209fa0c1cf984946656b60e89cf3-vornado1.jpg

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

 
 

 
 

 
 

 
 

 
 

 
 

 
 
Midtown West:
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 
888 Seventh Avenue
 
 

 
 

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

 
 

 
 

 
 

 
 

 
 

 
 

 
Pershing Square Capital Management
-Office
 
100.0
%
 
97.3
%
 
$
93.26

 
874,000

 
874,000

 

 
$
375,000

 
Vornado Executive Headquarters
-Retail
 
100.0
%
 
100.0
%
 
260.93

 
15,000

 
15,000

 

 

 
Redeye Grill L.P.
 
 
100.0
%
 
97.3
%
 
96.09

 
889,000

 
889,000




375,000

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
57th Street - 2 buildings
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 
-Office
 
50.0
%
 
84.6
%
 
47.87

 
81,000

 
81,000

 

 
20,000

 
 
-Retail
 
50.0
%
 
100.0
%
 
134.77

 
22,000

 
22,000

 

 

 
 
 
 
50.0
%
 
87.9
%
 
66.43

 
103,000

 
103,000




20,000

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
825 Seventh Avenue
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 
-Office
 
50.0
%
 
100.0
%
 
78.70

 
165,000

 
165,000

 

 
20,500

 
Young & Rubicam
-Retail
 
100.0
%
 
100.0
%
 
272.80

 
4,000

 
4,000

 

 

 
Lindy's
 
 
51.2
%
 
100.0
%
 
83.29

 
169,000

 
169,000




20,500

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Midtown West
 
 

 
 

 
 
 
1,161,000

 
1,161,000

 

 
415,500

 
 
Park Avenue:
 
 

 
 

 
 

 
 

 
 
 
 

 
 

 
 
280 Park Avenue
 
 

 
 

 
 

 
 

 
 
 
 

 
 

 
Cohen & Steers Inc., GIC Inc., Franklin Templeton Co. LLC,
-Office
 
50.0
%
 
97.3
%
 
100.58

 
1,228,000

 
1,228,000

 

 
1,200,000

 
PJT Partners, Investcorp International Inc., Wells Fargo
-Retail
 
50.0
%
 
100.0
%
 
99.64

 
26,000

 
26,000

 

 

 
Scottrade Inc., Starbucks, The Four Seasons Restaurant
 
 
50.0
%
 
97.4
%
 
100.56

 
1,254,000

 
1,254,000




1,200,000

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
350 Park Avenue
 
 

 
 

 
 

 
 

 
 
 
 

 
 

 
Kissinger Associates Inc., Ziff Brothers Investment Inc.,
-Office
 
100.0
%
 
100.0
%
 
105.84

 
554,000

 
554,000

 

 
400,000

 
MFA Financial Inc., M&T Bank
-Retail
 
100.0
%
 
100.0
%
 
264.76

 
17,000

 
17,000

 

 

 
Fidelity Investments, AT&T Wireless, Valley National Bank
 
 
100.0
%
 
100.0
%
 
110.57

 
571,000

 
571,000




400,000

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Park Avenue
 
 

 
 

 
 
 
1,825,000

 
1,825,000

 

 
1,600,000

 
 
Grand Central:
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 
90 Park Avenue
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
Alston & Bird, Capital One, PwC
-Office
 
100.0
%
 
98.3
%
 
77.87

 
937,000

 
937,000

 

 
 

 
Factset Research Systems Inc., Foley & Lardner
-Retail
 
100.0
%
 
100.0
%
 
131.17

 
24,000

 
24,000

 

 
 

 
Citibank, Starbucks
 
 
100.0
%
 
98.3
%
 
79.20

 
961,000

 
961,000



 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
330 Madison Avenue
 
 

 
 

 
 

 
 
 
 
 
 
 
 

 
Guggenheim Partners LLC, HSBC Bank AFS, Glencore Ltd.,
-Office
 
25.0
%
 
98.1
%
 
75.58

 
813,000

 
813,000

 

 
500,000

 
Jones Lang LaSalle Inc., Wells Fargo, American Century
-Retail
 
25.0
%
 
100.0
%
 
318.30

 
33,000

 
33,000

 

 

 
Ann Taylor Retail Inc., Citibank, Starbucks
 
 
25.0
%
 
98.1
%
 
85.04

 
846,000

 
846,000




500,000

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
510 Fifth Avenue
 
 

 
 

 
 
 
 
 
 
 
 
 
 
 
 
-Retail
 
100.0
%
 
100.0
%
 
147.19

 
66,000

 
66,000

 

 

 
The North Face, Elie Tahari
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Grand Central
 
 

 
 

 
 
 
1,873,000

 
1,873,000

 

 
500,000

 
 

- 43 -


https://cdn.kscope.io/d83f209fa0c1cf984946656b60e89cf3-vornado1.jpg

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

 
 

 
 

 
 

 
 

 
 

 
 
Madison/Fifth:
 
 
 
 

 
 

 
 

 
 
 
 

 
 
 
 
640 Fifth Avenue
 
 
 
 

 
 
 
 
 
 
 
 
 
 
 
Fidelity Investments, Owl Creek Asset Management LP,
-Office
 
100.0%
 
90.6
%
 
$
90.40

 
246,000

 
246,000

 

 
 
 
Stifel Financial Corp., GCA Savvian Inc.
-Retail
 
100.0%
 
96.1
%
 
918.68

 
68,000

 
68,000

 

 
 
 
Victoria's Secret (guaranteed by L Brands, Inc.), Dyson
 
 
100.0%
 
91.8
%
 
269.77

 
314,000

 
314,000

 

 
$

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
666 Fifth Avenue(4)
 
 
 
 

 
 

 
 

 
 
 
 

 
 
 
 
-Retail (Retail Condo)
 
100.0%
 
100.0
%
 
452.23

 
114,000

 
114,000

 

 
390,000

 
Fast Retailing (Uniqlo), Hollister, Tissot
 
 
 
 
 
 
 
 


 


 


 


 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
595 Madison Avenue
 
 
 
 

 
 

 
 

 
 
 
 

 
 
 
Beauvais Carpets, Levin Capital Strategies LP,
-Office
 
100.0%
 
95.4
%
 
81.37

 
299,000

 
299,000

 

 
 
 
Cosmetech Mably Int'l LLC.
-Retail
 
100.0%
 
47.3
%
 
1,223.98

 
26,000

 
26,000

 

 
 
 
Coach
 
 
100.0%
 
91.5
%
 
172.78

 
325,000

 
325,000

 

 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
650 Madison Avenue
 
 
 
 

 
 

 
 

 
 
 
 

 
 
 
Memorial Sloan Kettering Cancer Center, Polo Ralph Lauren,
-Office
 
20.1%
 
99.0
%
 
112.62

 
526,000

 
526,000

 

 
800,000

 
Willett Advisors LLC
-Retail
 
20.1%
 
28.5
%
 
1,237.08

 
67,000

 
67,000

 

 

 
Bottega Veneta Inc., Moncler USA Inc., Tod's
 
 
20.1%
 
91.1
%
 
239.67

 
593,000

 
593,000

 

 
800,000

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
689 Fifth Avenue
 
 
 
 

 
 

 
 

 
 
 
 

 
 
 
 
-Office
 
100.0%
 
90.0
%
 
80.09

 
81,000

 
81,000

 

 
 

 
Yamaha Artist Services Inc., Brunello Cucinelli USA Inc.
-Retail
 
100.0%
 
100.0
%
 
819.73

 
17,000

 
17,000

 

 
 

 
MAC Cosmetics, Massimo Dutti
 
 
100.0%
 
91.7
%
 
208.40

 
98,000

 
98,000

 

 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
655 Fifth Avenue
 
 
 
 

 
 
 
 
 
 
 
 
 
 
 
 
-Retail
 
92.5%
 
100.0
%
 
240.08

 
57,000

 
57,000

 

 
140,000

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

 
 
 
 
 
 
 
 
 
 
 
 
-Retail
 
74.3%
 
100.0
%
 
2,565.36

 
26,000

 
26,000

 

 
450,000

 
Swatch Group USA, Harry Winston
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Madison/Fifth
 
 
 
 

 
 
 
1,527,000


1,527,000




1,780,000

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Midtown South:
 
 
 
 

 
 

 
 

 
 

 
 

 
 

 
 
770 Broadway
 
 
 
 

 
 

 
 
 
 
 
 
 
 

 
 
-Office
 
100.0%
 
100.0
%
 
85.62

 
991,000

 
991,000

 

 
700,000

 
Facebook, Oath - formerly AOL (Verizon), J. Crew
-Retail
 
100.0%
 
100.0
%
 
57.40

 
169,000

 
169,000

 

 

 
Ann Taylor Retail Inc., Bank of America, Kmart Corporation
 
 
100.0%
 
100.0
%
 
81.51

 
1,160,000

 
1,160,000

 

 
700,000

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
One Park Avenue
 
 
 
 

 
 

 
 
 
 
 
 
 
 

 
New York University, Clarins USA Inc.,
 
 
 
 
 

 
 

 
 
 
 
 
 
 
 

 
BMG Right Management, Robert A.M. Stern Architect,
-Office
 
55.0%
 
99.0
%
 
54.51

 
862,000

 
862,000

 

 
300,000

 
automotiveMastermind
-Retail
 
55.0%
 
100.0
%
 
84.91

 
77,000

 
77,000

 

 

 
Bank of Baroda, Citibank, Equinox, Men's Wearhouse
 
 
55.0%
 
99.1
%
 
57.01

 
939,000

 
939,000

 

 
300,000

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
4 Union Square South
 
 
 
 

 
 
 
 
 
 
 
 
 
 
 
Burlington Coat Factory, Whole Foods Market, DSW,
-Retail
 
100.0%
 
100.0
%
 
105.76

 
206,000

 
206,000

 

 
114,028

 
Forever 21
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
692 Broadway
 
 
 
 

 
 
 
 
 
 
 
 
 
 
 
 
-Retail
 
100.0%
 
100.0
%
 
90.03

 
36,000

 
36,000

 

 

 
Equinox, Oath - formerly AOL (Verizon)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Other
 
 
 
 

 
 

 
 

 
 

 
 

 
 

 
 
-Retail
 
50.0%
 

 

 
36,000

 

 
36,000

 
30,000

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Midtown South
 
 
 
 

 
 
 
2,377,000

 
2,341,000

 
36,000

 
1,144,028

 
 

- 44 -


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

 
 

 
 

 
 

 
 

 
 

 
 

 
 
Rockefeller Center:
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 
1290 Avenue of the Americas
 
 

 
 

 
 
 
 
 
 
 
 
 
 
 
AXA Equitable Life Insurance, Hachette Book Group Inc.,
 
 
 

 
 

 
 

 
 

 
 

 
 

 
 

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

 
 

 
 

 
 

 
 

 
 

 
 

 
Cushman & Wakefield, Fitzpatrick,
-Office
 
70.0
%
 
100.0
%
 
$
81.48

 
2,038,000

 
2,038,000

 

 
$
950,000

 
Cella, Harper & Scinto, Columbia University
-Retail
 
70.0
%
 
100.0
%
 
177.62

 
76,000

 
76,000

 

 

 
Duane Reade, JPMorgan Chase Bank, Sovereign Bank, Starbucks
 
 
70.0
%
 
100.0
%
 
84.94

 
2,114,000

 
2,114,000

 

 
950,000

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
608 Fifth Avenue
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 
(ground leased through 2033)
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 
-Office
 
100.0
%
 
99.8
%
 
64.40

 
93,000

 
93,000

 

 
 

 
 
-Retail
 
100.0
%
 
100.0
%
 
470.74

 
44,000

 
44,000

 

 
 

 
Topshop
 
 
100.0
%
 
99.9
%
 
194.90

 
137,000

 
137,000

 

 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Rockefeller Center
 
 

 
 

 
 
 
2,251,000


2,251,000

 

 
950,000

 
 
Wall Street/Downtown:
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 
40 Fulton Street
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 
-Office
 
100.0
%
 
87.9
%
 
40.84

 
246,000

 
246,000

 

 
 

 
Market News International Inc., Sapient Corp.
-Retail
 
100.0
%
 
100.0
%
 
108.26

 
5,000

 
5,000

 

 
 

 
TD Bank
 
 
100.0
%
 
88.1
%
 
42.19

 
251,000

 
251,000

 

 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Soho:
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 
478-486 Broadway - 2 buildings
 
 

 
 

 
 
 
 
 
 
 
 
 
 
 
 
-Retail
 
100.0
%
 
100.0
%
 
242.74

 
65,000

 
65,000

 

 
 

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

 
20,000

 
20,000

 

 
 

 
 
 
 
100.0
%
 
100.0
%
 
 

 
85,000

 
85,000

 

 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
443 Broadway
 
 

 
 

 
 
 
 
 
 
 
 
 
 
 
 
Retail
 
100.0
%
 
100.0
%
 
95.90

 
16,000

 
16,000

 

 

 
Necessary Clothing
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
304 Canal Street
 
 

 
 

 
 
 
 
 
 
 
 
 
 
 
 
-Retail
 
100.0
%
 

 

 
4,000

 

 
4,000

 
 

 
 
-Residential (4 units)
 
100.0
%
 
100.0
%
 
 

 
9,000

 
9,000

 

 
 

 
 
 
 
100.0
%
 
100.0
%
 
 

 
13,000

 
9,000

 
4,000

 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
334 Canal Street
 
 

 
 

 
 
 
 
 
 
 
 
 
 
 
 
-Retail
 
100.0
%
 

 

 
4,000

 
4,000

 

 
 

 
 
-Residential (4 units)
 
100.0
%
 
100.0
%
 
 

 
11,000

 
11,000

 

 
 

 
 
 
 
100.0
%
 
73.3
%
 
 

 
15,000

 
15,000

 

 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
155 Spring Street
 
 

 
 

 
 
 
 
 
 
 
 
 
 
 
 
-Retail
 
100.0
%
 
93.6
%
 
133.21

 
50,000

 
50,000

 

 

 
Vera Bradley
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
148 Spring Street
 
 

 
 

 
 
 
 
 
 
 
 
 
 
 
 
-Retail
 
100.0
%
 
100.0
%
 
186.12

 
8,000

 
8,000

 

 

 
Dr. Martens
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
150 Spring Street
 
 

 
 

 
 
 
 
 
 
 
 
 
 
 
 
-Retail
 
100.0
%
 
100.0
%
 
288.39

 
6,000

 
6,000

 

 
 

 
Sandro
-Residential (1 unit)
 
100.0
%
 
100.0
%
 
 

 
1,000

 
1,000

 

 
 

 
 
 
 
100.0
%
 
100.0
%
 
 

 
7,000

 
7,000

 

 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Other
 
 

 
 

 
 
 
 
 
 
 
 
 
 
 
 
-Residential (26 units)
 
100.0
%
 
76.9
%
 
 

 
35,000

 
35,000

 

 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Soho
 
 

 
 

 
 
 
229,000


225,000


4,000

 

 
 

- 45 -


https://cdn.kscope.io/d83f209fa0c1cf984946656b60e89cf3-vornado1.jpg

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

 
 

 
 

 
 

 
 

 
 

 
 

 
 
Times Square:
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 
1540 Broadway
 
 

 
 

 
 
 
 
 
 
 
 
 
 
 
Forever 21, Planet Hollywood, Disney, Sunglass Hut,
-Retail
 
100.0
%
 
100.0
%
 
$
258.55

 
160,000

 
160,000

 

 
$

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

 
 
 
 
 
 
 
 
 
 
 
 
(ground and building leased through 2032)
 
 

 
 

 
 
 
 
 
 
 
 
 
 
 
 
-Retail
 
100.0
%
 
95.3
%
 
1,017.10

 
44,000

 
44,000

 

 
 

 
T-Mobile, Invicta, Swatch Group USA, Levi's*, Sephora*
-Theatre
 
100.0
%
 
100.0
%
 
13.48

 
62,000

 
62,000

 

 
 

 
Nederlander-Marquis Theatre
 
 
100.0
%
 
98.1
%
 
379.31

 
106,000

 
106,000

 

 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Times Square
 
 

 
 

 
 
 
266,000

 
266,000

 

 

 
 
Upper East Side:
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 
828-850 Madison Avenue
 
 

 
 

 
 

 
 
 
 
 
 
 
 

 
 
-Retail
 
100.0
%
 
100.0
%
 
618.42

 
18,000

 
18,000

 

 
80,000

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

 
 

 
 
 
 
 
 
 
 
 
 
 
 
-Retail
 
100.0
%
 
100.0
%
 
489.27

 
8,000

 
8,000

 

 
 

 
Berluti
-Residential (8 units)
 
100.0
%
 
75.0
%
 
 

 
5,000

 
5,000

 

 
 

 
 
 
 
100.0
%
 
90.4
%
 
 

 
13,000

 
13,000

 

 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
759-771 Madison Avenue (40 East 66th)
 
 

 
 

 
 
 
 
 
 
 
 
 
 
 
 
-Residential (5 units)
 
100.0
%
 
100.0
%
 
 

 
12,000

 
12,000

 

 
 

 
 
-Retail
 
100.0
%
 
66.7
%
 
1,042.91

 
11,000

 
11,000

 

 
 

 
John Varvatos, J. Crew
 
 
100.0
%
 
84.1
%
 
 

 
23,000

 
23,000

 

 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1131 Third Avenue
 
 

 
 

 
 
 
 
 
 
 
 
 
 
 
 
Retail
 
100.0
%
 
100.0
%
 
156.59

 
23,000

 
23,000

 

 

 
Nike, Crunch LLC, J.Jill
Other
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 
-Retail - 2 buildings
 
100.0
%
 
100.0
%
 

 
15,000

 
15,000

 

 
 

 
 
-Residential (8 units)
 
100.0
%
 
100.0
%
 
 

 
7,000

 
7,000

 

 
 

 
 
 
 
100.0
%
 
100.0
%
 
 

 
22,000

 
22,000

 

 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Upper East Side
 
 

 
 

 
 
 
99,000

 
99,000

 

 
80,000

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Long Island City:
 
 

 
 

 
 

 
 
 
 
 
 

 
 

 
 
33-00 Northern Boulevard (Center Building)
 
 

 
 

 
 

 
 
 
 
 
 

 
 

 
 
-Office
 
100.0
%
 
99.6
%
 
34.65

 
471,000

 
471,000

 

 
59,752

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

 
 

 
 

 
 

 
 

 
 

 
 

 
 
260 Eleventh Avenue
 
 

 
 

 
 
 
 
 
 
 
 
 
 
 
 
(ground leased through 2114)
 
 

 
 

 
 
 
 
 
 
 
 
 
 
 
 
-Office
 
100.0
%
 
100.0
%
 
52.08

 
184,000

 
184,000

 

 

 
The City of New York
 
 
 
 
 
 
.

 
 
 
 
 
 
 
 
 
 
85 Tenth Avenue
 
 
 
 

 
 
 
 
 
 
 
 
 
 
 
Google, General Services Administration,
 
 
 

 
 

 
 

 
 

 
 

 
 

 
 

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

 
586,000

 
586,000

 

 
625,000

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

 
41,000

 
41,000

 

 

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

 
627,000

 
627,000

 

 
625,000

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Chelsea/Meatpacking District
 
 

 
 

 
 
 
811,000


811,000

 

 
625,000

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Upper West Side:
 
 

 
 

 
 
 
 

 
 

 
 

 
 

 
 
50-70 W 93rd Street
 
 

 
 

 
 
 
 
 
 
 
 
 
 
 
 
-Residential (326 units)
 
49.9
%
 
95.1
%
 
 
 
283,000

 
283,000

 

 
80,000

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

- 46 -


https://cdn.kscope.io/d83f209fa0c1cf984946656b60e89cf3-vornado1.jpg

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

 
 

 
 

 
 

 
 

 
 

 
 

 
 
Tribeca:
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 
Independence Plaza, Tribeca
 
 

 
 

 
 
 
 
 
 
 
 
 
 
 
 
-Residential (1,327 units)
 
50.1
%
 
97.6
%
 
 

 
1,185,000

 
1,185,000

 

 
$
550,000

 
 
-Retail
 
50.1
%
 
100.0
%
 
$
45.37

 
72,000

 
60,000

 
12,000

 

 
Duane Reade, Food Emporium
 
 
50.1
%
 
97.7
%
 
 

 
1,257,000

 
1,245,000

 
12,000

 
550,000

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
339 Greenwich Street
 
 

 
 

 
 
 
 
 
 
 
 
 
 
 
 
-Retail
 
100.0
%
 
100.0
%
 
105.00

 
8,000

 
8,000

 

 

 
Sarabeth's
Total Tribeca
 
 

 
 

 
 

 
1,265,000

 
1,253,000

 
12,000

 
550,000

 
 
New Jersey:
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 
Paramus
 
 

 
 

 
 
 
 
 
 
 
 
 
 
 
 
-Office
 
100.0
%
 
94.7
%
 
22.18

 
129,000

 
129,000

 

 

 
Vornado's Administrative Headquarters
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Washington D.C.:
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 
3040 M Street
 
 

 
 

 
 
 
 
 
 
 
 
 
 
 
 
-Retail
 
100.0
%
 
100.0
%
 
71.06

 
44,000

 
44,000

 

 

 
Nike, Amazon
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Properties to be Developed:
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 
512 West 22nd Street
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 
-Office
 
55.0
%
 

 

 
173,000

 

 
173,000

 
66,066

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
61 Ninth Avenue
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 
(ground leased through 2115)
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 
-Office
 
45.1
%
 

 

 
147,000

 

 
147,000

 
53,178

 
Aetna Life Insurance Company*
-Retail
 
45.1
%
 
100.0
%
 
287.61

 
23,000

 
23,000

 

 

 
Starbucks
 
 
45.1
%
 
100.0
%
 
287.61

 
170,000

 
23,000

 
147,000

 
53,178

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
606 Broadway (19 East Houston Street)
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 
-Office
 
50.0
%
 

 

 
23,000

 

 
23,000

 

 
 
-Retail
 
50.0
%
 

 

 
11,000

 

 
11,000

 
38,458

 
 
 
 
50.0
%
 

 

 
34,000

 

 
34,000

 
38,458

 
 
 
 
 

 
 

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

 

 
730,000

 

 
730,000

 
210,269

 
 
-Retail
 
50.1
%
 

 

 
120,000

 

 
120,000

 

 
 
 
 
50.1
%
 

 

 
850,000

 

 
850,000

 
210,269

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Properties to be Developed
 
 
 
 
 
 
 
1,227,000

 
23,000

 
1,204,000

 
367,971

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
New York Office:
 
 

 
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total
 
 

 
97.4
%
 
$
73.22

 
21,329,000

 
20,256,000

 
1,073,000

 
$
8,403,317

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Vornado's Ownership Interest
 
 

 
97.1
%
 
$
71.09

 
17,521,000

 
16,982,000

 
539,000

 
$
6,713,393

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
New York Retail:
 
 

 
 

 
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total
 
 

 
95.7
%
 
$
220.87

 
2,931,000

 
2,720,000

 
211,000

 
$
1,725,864

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Vornado's Ownership Interest
 
 

 
96.9
%
 
$
217.17

 
2,593,000

 
2,471,000

 
122,000

 
$
1,565,285

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
New York Residential:
 
 

 
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total
 
 

 
96.4
%
 
 

 
1,568,000

 
1,568,000

 

 
$
630,000

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Vornado's Ownership Interest
 
 

 
96.7
%
 
 

 
835,000

 
835,000

 

 
$
315,470

 
 

- 47 -


https://cdn.kscope.io/d83f209fa0c1cf984946656b60e89cf3-vornado1.jpg

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

 
 

 
 
 
 
 
 
 
 
 
 
 
 
ALEXANDER'S, INC.:
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 
New York:
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 
731 Lexington Avenue, Manhattan
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 
-Office
 
32.4
%
 
100.0
%
 
$
115.33

 
889,000

 
889,000

 

 
$
500,000

 
Bloomberg
-Retail
 
32.4
%
 
99.4
%
 
181.72

 
174,000

 
174,000

 

 
350,000

 
Hennes & Mauritz, The Home Depot, The Container Store
 
 
32.4
%
 
99.9
%
 
125.27

 
1,063,000

 
1,063,000

 

 
850,000

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 
 

 
 

 
 

 
 

 
 

 
 

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

 
343,000

 
343,000

 

 
78,246

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

 
 

 
 
 
 
 
 
 
 
 
 
 
 
Queens (6.6 acres)
 
32.4
%
 
99.9
%
 
44.72

 
609,000

 
609,000

 

 
256,194

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

 
167,000

 
167,000

 

 

 
New World Mall LLC
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
The Alexander Apartment Tower,
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 
Rego Park, Queens, NY
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 
Residential (312 units)
 
32.4
%
 
94.6
%
 

 
255,000

 
255,000

 

 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
New Jersey:
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 
Paramus, New Jersey
 
 

 
 

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

 

 

 

 
68,000

 
IKEA (ground lessee)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Property to be Developed:
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 
Rego Park III (adjacent to Rego Park II),
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 
Queens, NY (3.4 acres)
 
32.4
%
 

 

 

 

 

 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Alexander's
 
32.4
%
 
99.3
%
 
77.39

 
2,437,000

 
2,437,000

 

 
1,252,440

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Hotel Pennsylvania:
 
 

 
 

 
 
 
 
 
 
 
 
 
 
 
 
-Hotel (1,700 Keys)
 
100.0
%
 

 

 
1,400,000

 
1,400,000

 

 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total New York
 
 

 
97.4
%
 
$
87.95

 
29,665,000

 
28,381,000

 
1,284,000

 
$
12,011,621

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Vornado's Ownership Interest
 
 

 
97.2
%
 
$
75.11

 
23,139,000

 
22,478,000

 
661,000

 
$
8,999,939

 
 
____________________
*    Lease not yet commenced.

(1)
Weighted average annual rent per square foot for office properties excludes garages and diminimous amounts of storage space.  Weighted average annual rent per square foot for retail excludes percentage rent and non-selling space.
(2)
Represents the contractual debt obligations.
(3)
Excludes US Post Office leased through 2038 (including three five-year renewal options) for which the annual escalated rent is $12.31 PSF.
(4)
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. 75,000 square feet is leased from 666 Fifth Avenue Office Condominium.
(5)
Leased by Alexander's through January 2037.

- 48 -


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OTHER
PROPERTY TABLE
 
 
%
Ownership
 
%
Occupancy
 
Weighted
Average
Annual Rent
PSF (1)
 
Square Feet
 
Encumbrances
(non-GAAP)
(in thousands) (2)
 
Major Tenants
Property
 
 
 
 
Total
Property
 
In Service
 
Under Development
or Not Available
for Lease
 
 
555 California Street:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
555 California Street
 
70.0
%
 
96.2
%
 
$
74.74

 
1,506,000

 
1,506,000

 

 
$
569,215

 
Bank of America, Dodge & Cox, Goldman Sachs & Co.,
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Jones Day, Kirkland & Ellis LLP, Morgan Stanley & Co. Inc.,
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
McKinsey & Company Inc., UBS Financial Services,
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
KKR Financial, Microsoft Corporation,
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fenwick & West LLP
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
315 Montgomery Street
 
70.0
%
 
81.7
%
 
63.22

 
235,000

 
235,000

 

 

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

 

 
64,000

 

 
64,000

 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total 555 California Street
 
 
 
94.2
%
 
$
73.40

 
1,805,000

 
1,741,000

 
64,000

 
$
569,215

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Vornado's Ownership Interest
 
 
 
94.2
%
 
$
73.40

 
1,264,000

 
1,219,000

 
45,000

 
$
398,450

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
theMART:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
theMART, Chicago
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Motorola Mobility (guaranteed by Google),
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
CCC Information Services, Ogilvy Group (WPP),
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Publicis Groupe (MSL Group, Medicus Group, Razorfish),
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1871, Yelp Inc., Paypal, Inc., Allscripts Healthcare,
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Chicago School of Professional Psychology,
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Innovation Development Institute, Inc., Chicago Teachers Union,
-Office
 
100.0
%
 
99.4
%
 
$
37.52

 
2,010,000

 
2,010,000

 

 
 
 
ConAgra Foods Inc., Allstate Insurance Company,
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Steelcase, Baker, Knapp & Tubbs, Holly Hunt Ltd.,
-Showroom/Trade show
 
100.0
%
 
97.7
%
 
47.71

 
1,561,000

 
1,561,000

 

 
 
 
Allsteel Inc., Herman Miller Inc., Knoll Inc., Teknion LLC
-Retail
 
100.0
%
 
98.1
%
 
51.82

 
99,000

 
99,000

 

 
 
 
 
 
 
100.0
%
 
98.6
%
 
42.18

 
3,670,000

 
3,670,000

 

 
$
675,000

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Other (2 properties)
 
50.0
%
 
100.0
%
 
38.11

 
19,000

 
19,000

 

 
32,976

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total theMART
 
 
 
98.6
%
 
$
42.15

 
3,689,000

 
3,689,000

 

 
$
707,976

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Vornado's Ownership Interest
 
 
 
98.6
%
 
$
42.15

 
3,680,000

 
3,680,000

 

 
$
691,488

 
 
____________________
*    Lease not yet commenced.

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

- 49 -


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REAL ESTATE FUND
PROPERTY TABLE
 
 
Fund
%
Ownership
 
%
Occupancy
 
Weighted
Average
Annual Rent
PSF (1)
 
Square Feet
 
Encumbrances
(non-GAAP)
(in thousands) (2)
 
Major Tenants
Property
 
 
 
 
Total
Property
 
In Service
 
Under Development
or Not Available
for Lease
 
 
VORNADO CAPITAL PARTNERS
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
     REAL ESTATE FUND:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
New York, NY:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Lucida, 86th Street and Lexington Avenue
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
    (ground leased through 2082)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Barnes & Noble, Hennes & Mauritz,
     - Retail
 
100.0
%
 
100.0
%
 
$
232.03

 
96,000

 
96,000

 

 
 
 
Sephora, Bank of America
     - Residential (39 units)
 
100.0
%
 
89.7
%
 
 
 
59,000

 
59,000

 

 
 
 
 
 
 
100.0
%
 
 
 
 
 
155,000

 
155,000

 

 
$
145,639

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
11 East 68th Street Retail(3)
 
100.0
%
 
100.0
%
 
711.99

 
11,000

 
11,000

 

 
60,000

 
Belstaff, Kent & Curwen, Rag & Bone
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Crowne Plaza Times Square
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
     - Hotel (795 Keys)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
     - Retail
 
75.3
%
 
100.0
%
 
100.07

 
44,000

 
44,000

 

 
 
 
 
     - Office
 
75.3
%
 
61.9
%
 
63.51

 
197,000

 
197,000

 

 
 
 
American Management Association
 
 
75.3
%
 
68.9
%
 
70.18

 
241,000

 
241,000

 

 
310,000

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
501 Broadway
 
100.0
%
 
100.0
%
 
263.38

 
9,000

 
9,000

 

 
23,000

 
Capital One Financial Corporation
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Miami, FL:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1100 Lincoln Road
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
     - Retail
 
100.0
%
 
74.5
%
 
171.56

 
51,000

 
49,000

 
2,000

 
 
 
Banana Republic
     - Theatre
 
100.0
%
 
100.0
%
 
39.29

 
79,000

 
79,000

 

 
 
 
Regal Cinema
 
 
100.0
%
 
90.2
%
 
81.23

 
130,000

 
128,000

 
2,000

 
82,750

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Real Estate Fund
 
89.1
%
 
83.8
%
 
 
 
546,000

 
544,000

 
2,000

 
$
621,389

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Vornado's Ownership Interest
 
28.5
%
 
80.2
%
 
 
 
156,000

 
155,000

 
1,000

 
$
136,205

 
 
____________________
(1)
Weighted average annual rent per square foot excludes ground rent, storage rent, garages and residential.
(2)
Represents the contractual debt obligations.
(3)
Sold on January 17, 2018.




- 50 -


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OTHER
PROPERTY TABLE
Property
 
%
Ownership
 
%
Occupancy
 
Weighted
Average
Annual Rent
PSF (1)
 
Square Feet
 
Encumbrances
(non-GAAP)
(in thousands) (3)
 
Major Tenants
 
 
 
 
Total
Property
 
In Service
 
Under Development
or Not Available
for Lease
 
 
 
 
 
 
 
Owned by
Company
 
Owned by
Tenant (2) 
 
 
 
OTHER:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
New York:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
666 Fifth Avenue Office Condominium(4)
 
49.5
%
 

 

 
1,448,000

 

 

 
1,448,000

 
1,413,114

 
Colliers International NY LLC,
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Integrated Holding Group, Vinson & Elkins LLP
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
HSBC Bank USA, Citibank
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Virginia:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Rosslyn Plaza(5)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
General Services Administration,
Office - 4 buildings
 
46.2
%
 
65.9
%
 
43.82

 
736,000

 
435,000

 

 
301,000

 
 
 
Corporate Executive Board, Nathan Associates, Inc.
Residential - 2 buildings (197 units)
 
43.7
%
 
95.4
%
 
 
 
253,000

 
253,000

 

 

 
 
 
 
 
 
 
 
 
 
 
 
989,000

 
688,000

 

 
301,000

 
37,925

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fashion Centre Mall(5)
 
7.5
%
 
99.4
%
 
49.26

 
868,000

 
868,000

 

 

 
410,000

 
Macy's, Nordstrom
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Washington Tower(5)
 
7.5
%
 
100.0
%
 
50.01

 
170,000

 
170,000

 

 

 
40,000

 
Computer Science Corp.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
New Jersey:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Wayne Town Center, Wayne
 
100.0
%
 
100.0
%
 
30.71

 
677,000

 
228,000

 
443,000

 
6,000

 

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

 
128,000

 
128,000

 

 

 

 
The Home Depot
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Other
 
 
 
93.2
%
 
$
40.28

 
4,280,000

 
2,082,000

 
443,000

 
1,755,000

 
$
1,901,039

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Vornado's Ownership Interest
 
 
 
93.6
%
 
$
31.11

 
2,050,000

 
745,000

 
443,000

 
862,000

 
$
752,000

 
 
____________________
(1)
Weighted average annual rent per square foot excludes ground rent, storage rent, garages and residential.
(2)
Owned by tenant on land leased from the company.
(3)
Represents the contractual debt obligations.
(4)
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.
(5)
Reclassified to Other from our former Washington, DC segment.




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APPENDIX
NON-GAAP RECONCILIATIONS


https://cdn.kscope.io/d83f209fa0c1cf984946656b60e89cf3-vornado1.jpg

NON-GAAP RECONCILIATIONS
RECONCILIATION OF NET INCOME (LOSS) ATTRIBUTABLE TO COMMON SHAREHOLDERS TO NET INCOME, AS ADJUSTED
(unaudited and in thousands, except per share amounts)
 
 
Three Months Ended
 
Year Ended December 31,
 
 
December 31,
 
September 30,
2017
 
 
 
2017
 
2016
 
 
2017
 
2016
Net income (loss) attributable to common shareholders
(A)
$
27,319

 
$
651,181

 
$
(29,026
)
 
$
162,017

 
$
823,606

Per diluted share
 
$
0.14

 
$
3.43

 
$
(0.15
)
 
$
0.85

 
$
4.34

 
 
 
 
 
 
 
 
 
 
 
Certain items that impact net income (loss) attributable to common shareholders:
 
 
 
 
 
 
 
 
 
 
JBG SMITH Properties which is treated as a discontinued operation:
 
 
 
 
 
 
 
 
 
 
Transaction costs
 
$
(1,617
)
 
$
(11,989
)
 
$
(53,581
)
 
$
(68,662
)
 
$
(16,586
)
Operating results through July 17, 2017 spin-off
 

 
20,523

 
3,950

 
47,752

 
87,237

 
 
(1,617
)
 
8,534

 
(49,631
)
 
(20,910
)
 
70,651

 
 
 
 
 
 
 
 
 
 
 
Tax expense related to the reduction of our taxable REIT subsidiaries deferred tax assets
 
(34,800
)
 

 

 
(34,800
)
 

Expense related to the prepayment of our 2.50% senior unsecured notes due 2019
 
(4,836
)
 

 

 
(4,836
)
 

666 Fifth Avenue Office Condominium (49.5% interest)(1)
 
(3,042
)
 
(7,869
)
 
(4,323
)
 
(25,414
)
 
(41,532
)
Income (loss) from real estate fund investments, net
 
529

 
(34,704
)
 
(7,794
)
 
(10,804
)
 
(21,042
)
Net gain on extinguishment of Skyline properties debt
 

 
487,877

 

 

 
487,877

Income from the repayment of our investments in 85 Tenth Avenue loans and preferred equity
 

 
160,843

 

 

 
160,843

Net gain on sale on our 20% interest in Fairfax Square
 

 
15,302

 

 

 
15,302

Our share of impairment on India non-depreciable real estate
 

 
(13,962
)
 

 

 
(13,962
)
Default interest on Skyline properties mortgage loan
 

 
(2,480
)
 

 

 
(7,823
)
Impairment loss on our investment in Pennsylvania REIT
 

 

 
(44,465
)
 
(44,465
)
 

Net gain resulting from Urban Edge Properties operating partnership unit issuances
 

 

 
5,200

 
21,100

 

Our share of write-off of deferred financing costs
 

 

 
(3,819
)
 
(3,819
)
 

Our share of net gain on sale of property of Suffolk Downs JV
 

 

 

 
15,314

 

Net gain on repayment of Suffolk Downs JV debt investments
 

 

 

 
11,373

 

Skyline properties impairment loss
 

 

 

 

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

 

 

 

 
159,511

Preferred share issuance costs (Series J redemption)
 

 

 

 

 
(7,408
)
Other
 
3,084

 
(2,942
)
 
(3,197
)
 
2,060

 
(8,298
)
 
 
(40,682
)
 
610,599

 
(108,029
)
 
(95,201
)
 
633,419

Noncontrolling interests' share of above adjustments
 
2,522

 
(37,185
)
 
6,719

 
6,267

 
(38,972
)
Total of certain items that impact net (loss) income attributable to common shareholders, net
(B)
$
(38,160
)
 
$
573,414

 
$
(101,310
)
 
$
(88,934
)
 
$
594,447

Per diluted share (non-GAAP)
 
$
(0.20
)
 
$
3.02

 
$
(0.53
)
 
$
(0.46
)
 
$
3.13

 
 
 
 
 
 
 
 
 
 
 
Net income attributable to common shareholders, as adjusted (non-GAAP)
(A-B)
$
65,479

 
$
77,767

 
$
72,284

 
$
250,951

 
$
229,159

Per diluted share (non-GAAP)
 
$
0.34

 
$
0.41

 
$
0.38

 
$
1.31

 
$
1.21

________________________________________
(1)
Included in "certain items that impact net income" because we do not intend to hold this asset on a long-term basis.

- i -


https://cdn.kscope.io/d83f209fa0c1cf984946656b60e89cf3-vornado1.jpg

NON-GAAP RECONCILIATIONS
RECONCILIATION OF NET INCOME (LOSS) ATTRIBUTABLE TO COMMON SHAREHOLDERS TO FFO
(unaudited and in thousands, except per share amounts)
 
 
Three Months Ended
 
Year Ended December 31,
 
 
December 31,
 
September 30,
2017
 
 
 
2017
 
2016
 
 
2017
 
2016
Reconciliation of our net income (loss) attributable to common shareholders to FFO
     (non-GAAP):
 
 
 
 
 
 
 
 
 
 
Net income (loss) attributable to common shareholders
(A)
$
27,319

 
$
651,181

 
$
(29,026
)
 
$
162,017

 
$
823,606

Per diluted share
 
$
0.14

 
$
3.43

 
$
(0.15
)
 
$
0.85

 
$
4.34

 
 
 
 
 
 
 
 
 
 
 
FFO adjustments:
 
 
 
 
 
 
 
 
 
 
Depreciation and amortization of real property
 
$
106,017

 
$
133,389

 
$
102,953

 
$
467,966

 
$
531,620

Net gains on sale of real estate
 
308

 
(15,302
)
 
(1,530
)
 
(3,489
)
 
(177,023
)
Real estate impairment losses
 

 

 

 

 
160,700

Proportionate share of adjustments to equity in net income of partially owned entities to arrive at FFO:
 
 
 
 
 
 
 
 
 
 
Depreciation and amortization of real property
 
28,247

 
37,160

 
31,997

 
137,000

 
154,795

Net gains on sale of real estate
 
(593
)
 
(12
)
 
8

 
(17,777
)
 
(2,853
)
Real estate impairment losses
 
145

 
792

 
4,329

 
7,692

 
6,328

 
 
134,124

 
156,027

 
137,757

 
591,392

 
673,567

Noncontrolling interests' share of above adjustments
 
(8,310
)
 
(9,495
)
 
(8,572
)
 
(36,728
)
 
(41,267
)
FFO adjustments, net
(B)
$
125,814

 
$
146,532

 
$
129,185

 
$
554,664

 
$
632,300

 
 
 
 
 
 
 
 
 
 
 
FFO attributable to common shareholders (non-GAAP)
(A+B)
$
153,133

 
$
797,713

 
$
100,159

 
$
716,681

 
$
1,455,906

Convertible preferred share dividends
 
18

 
21

 
19

 
77

 
86

Earnings allocated to Out-Performance Plan units
 

 

 

 
1,047

 
1,591

FFO attributable to common shareholders plus assumed conversions (non-GAAP)
 
153,151

 
797,734

 
100,178

 
717,805

 
1,457,583

Add back of income allocated to noncontrolling interests of the Operating Partnership
 
10,372

 
52,759

 
6,776

 
47,401

 
94,902

FFO - OP Basis (non-GAAP)
 
$
163,523

 
$
850,493

 
$
106,954

 
$
765,206

 
$
1,552,485

FFO per diluted share (non-GAAP)
 
$
0.80

 
$
4.20

 
$
0.52

 
$
3.75

 
$
7.66


- ii -


https://cdn.kscope.io/d83f209fa0c1cf984946656b60e89cf3-vornado1.jpg

NON-GAAP RECONCILIATIONS
RECONCILIATION OF FFO TO FFO, AS ADJUSTED
(unaudited and in thousands, except per share amounts)
 
 
Three Months Ended
 
Year Ended December 31,
 
 
December 31,
 
September 30,
2017
 
 
 
2017
 
2016
 
 
2017
 
2016
FFO attributable to common shareholders plus assumed conversions (non-GAAP)
(A)
$
153,151

 
$
797,734

 
$
100,178

 
$
717,805

 
$
1,457,583

Per diluted share (non-GAAP)
 
$
0.80

 
$
4.20

 
$
0.52

 
$
3.75

 
$
7.66

 
 
 
 
 
 
 
 
 
 
 
Certain items that impact FFO:
 
 
 
 
 
 
 
 
 
 
JBG SMITH Properties which is treated as a discontinued operation:
 
 
 
 
 
 
 
 
 
 
Transaction costs
 
$
(1,617
)
 
$
(11,989
)
 
$
(53,581
)
 
$
(68,662
)
 
$
(16,586
)
Operating results through July 17, 2017 spin-off
 

 
57,147

 
10,148

 
122,201

 
226,288

 
 
(1,617
)
 
45,158

 
(43,433
)
 
53,539

 
209,702

 
 
 
 
 
 
 
 
 
 
 
Tax expense related to the reduction of our taxable REIT subsidiaries deferred tax assets
 
(34,800
)
 

 

 
(34,800
)
 

Expense related to the prepayment of our 2.50% senior unsecured notes due 2019
 
(4,836
)
 

 

 
(4,836
)
 

666 Fifth Avenue Office Condominium (49.5% interest)(1)
 
1,103

 
808

 
4,348

 
13,164

 
10,925

Income (loss) from real estate fund investments, net
 
529

 
(34,704
)
 
(7,794
)
 
(10,804
)
 
(21,042
)
Net gain on extinguishment of Skyline properties debt
 

 
487,877

 

 

 
487,877

Income from the repayment of our investments in 85 Tenth Avenue loans and preferred equity
 

 
160,843

 

 

 
160,843

Our share of impairment on India non-depreciable real estate
 

 
(13,962
)
 

 

 
(13,962
)
Impairment loss on our investment in Pennsylvania REIT
 

 

 
(44,465
)
 
(44,465
)
 

Net gain resulting from Urban Edge Properties operating partnership unit issuances
 

 

 
5,200

 
21,100

 

Our share of write-off of deferred financing costs
 

 

 
(3,819
)
 
(3,819
)
 

Net gain on repayment of our Suffolk Downs JV debt investments
 

 

 

 
11,373

 

Preferred share issuance costs (Series J redemption)
 

 

 

 

 
(7,408
)
Other
 
2,945

 
(2,324
)
 
(390
)
 
3,801

 
(2,454
)
 
 
(36,676
)
 
643,696

 
(90,353
)
 
4,253

 
824,481

Noncontrolling interests' share of above adjustments
 
2,274

 
(39,201
)
 
6,320

 
(264
)
 
(50,293
)
Total of certain items that impact FFO, net
(B)
(34,402
)
 
604,495

 
(84,033
)
 
3,989

 
774,188

Per diluted share
 
$
(0.18
)
 
$
3.18

 
$
(0.44
)
 
$
0.02

 
$
4.07

 
 
 
 
 
 
 
 
 
 
 
FFO, as adjusted (non-GAAP)
(A-B)
$
187,553

 
$
193,239

 
$
184,211

 
$
713,816

 
$
683,395

Per diluted share (non-GAAP)
 
$
0.98

 
$
1.02

 
$
0.96

 
$
3.73

 
$
3.59

________________________________________
(1)
Included in "certain items that impact FFO" because we do not have the intent to hold this asset on a long-term basis.



- iii -


https://cdn.kscope.io/d83f209fa0c1cf984946656b60e89cf3-vornado1.jpg

NON-GAAP RECONCILIATIONS
RECONCILIATION OF FFO TO FAD
(unaudited and in thousands, except per share amounts)
 
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended
 
Year Ended December 31,
 
 
December 31,
 
September 30,
2017
 
 
 
2017
 
2016
 
 
2017
 
2016
FFO attributable to common shareholders plus assumed conversions (non-GAAP)
(A)
$
153,151

 
$
797,734

 
$
100,178

 
$
717,805

 
$
1,457,583

 
 
 
 
 
 
 
 
 
 
 
Adjustments to arrive at FAD (non-GAAP):
 
 
 
 
 
 
 
 
 
 
Adjustments to FFO per page iii, excluding FFO from discontinued operations and sold properties
 
(36,758
)
 
584,347

 
(100,672
)
 
(119,025
)
 
586,270

Recurring tenant improvements, leasing commissions and other capital expenditures
 
62,636

 
124,014

 
64,520

 
276,997

 
386,733

Amortization of acquired below-market leases, net
 
10,908

 
11,068

 
10,660

 
45,043

 
51,370

Straight-lining of rents
 
8,041

 
27,827

 
9,170

 
45,792

 
146,787

Amortization of debt issuance costs
 
(9,236
)
 
(8,402
)
 
(6,220
)
 
(32,790
)
 
(34,714
)
Stock-based compensation expense
 
(5,510
)
 
(6,077
)
 
(5,693
)
 
(32,829
)
 
(33,980
)
Non real estate depreciation
 
(1,629
)
 
(2,522
)
 
(1,671
)
 
(7,333
)
 
(7,799
)
Noncontrolling interests' share of above adjustments
 
(1,764
)
 
(44,473
)
 
1,860

 
(10,903
)
 
(66,782
)
 
(B)
26,688

 
685,782

 
(28,046
)
 
164,952

 
1,027,885

 
 
 
 
 
 
 
 
 
 
 
FAD (non-GAAP)
(A-B)
$
126,463


$
111,952


$
128,224


$
552,853


$
429,698

 
 
 
 
 
 
 
 
 
 
 
FAD payout ratio (1)
 
90.9
%
 
106.8
%
 
89.6
%
 
90.7
%
 
111.5
%
_____________________________________________
(1)
FAD payout ratios on a quarterly basis are not necessarily indicative of amounts for the full year due to fluctuation in timing of cash based expenditures, the commencement of new leases and the seasonality of our operations.


- iv -


https://cdn.kscope.io/d83f209fa0c1cf984946656b60e89cf3-vornado1.jpg

NON-GAAP RECONCILIATIONS
RECONCILIATION OF NET INCOME (LOSS) TO NET OPERATING INCOME AT SHARE
(unaudited and in thousands)
 
 
 
 
 
 
 
 
 
 
 
For the Three Months Ended
 
 
 
 
 
December 31,
 
September 30, 2017
 
For the Year Ended December 31,
 
2017
 
2016
 
 
2017
 
2016
Net income (loss)
$
53,551

 
$
704,544

 
$
(10,754
)
 
$
264,128

 
$
981,922

 
 
 
 
 
 
 
 
 
 
Deduct:
 
 
 
 
 
 
 
 
 
Our share of (income) loss from partially owned entities
(9,622
)
 
(165,056
)
 
41,801

 
(15,200
)
 
(168,948
)
Our share of (income) loss from real estate fund investments
(4,889
)
 
52,352

 
6,308

 
(3,240
)
 
23,602

Interest and other investment income, net
(9,993
)
 
(9,427
)
 
(9,306
)
 
(37,793
)
 
(29,548
)
Net gains on disposition of wholly owned and partially owned assets

 
(208
)
 

 
(501
)
 
(160,433
)
(Income) loss from discontinued operations
(1,273
)
 
(509,116
)
 
47,930

 
13,228

 
(404,912
)
NOI attributable to noncontrolling interests in consolidated subsidiaries
(16,533
)
 
(16,083
)
 
(16,171
)
 
(65,311
)
 
(66,182
)
 
 
 
 
 
 
 
 
 
 
Add:
 
 
 
 
 
 
 
 
 
Depreciation and amortization expense
114,166

 
104,640

 
104,972

 
429,389

 
421,023

General and administrative expense
36,838

 
36,957

 
36,261

 
158,999

 
149,550

Acquisition and transaction related costs
703

 
2,754

 
61

 
1,776

 
9,451

NOI from partially owned entities
69,175

 
75,142

 
66,876

 
269,164

 
271,114

Interest and debt expense
93,073

 
80,206

 
85,068

 
345,654

 
330,240

Income tax expense (benefit)
38,661

 
(1,692
)
 
1,188

 
41,090

 
7,229

NOI at share
363,857

 
355,013

 
354,234

 
1,401,383

 
1,364,108

Non cash adjustments for straight-line rents, amortization of acquired below-market leases, net and other
(21,579
)
 
(36,370
)
 
(22,307
)
 
(86,842
)
 
(170,477
)
NOI at share - cash basis
$
342,278

 
$
318,643

 
$
331,927

 
$
1,314,541

 
$
1,193,631



- v -


https://cdn.kscope.io/d83f209fa0c1cf984946656b60e89cf3-vornado1.jpg

NON-GAAP RECONCILIATIONS
NET OPERATING INCOME AT SHARE COMPONENTS
(unaudited and in thousands)
 
 
 
 
 
 
 
 
 
 
 
For the Three Months Ended December 31,
 
Total Revenues
 
Operating Expenses
 
NOI
 
Non-cash Adjustments(1)
 
NOI - cash basis
 
2017
 
2016
 
2017
 
2016
 
2017
 
2016
 
2017
 
2016
 
2017
 
2016
New York
$
462,597

 
$
443,910

 
$
195,421

 
$
182,762

 
$
267,176

 
$
261,148

 
$
(17,761
)
 
$
(28,543
)
 
$
249,415

 
$
232,605

Other
73,629

 
70,064

 
29,590

 
35,258

 
44,039

 
34,806

 
160

 
(3,556
)
 
44,199

 
31,250

Consolidated total
536,226

 
513,974

 
225,011

 
218,020

 
311,215

 
295,954

 
(17,601
)
 
(32,099
)
 
293,614

 
263,855

Noncontrolling interests' share in consolidated subsidiaries
(26,594
)
 
(26,088
)
 
(10,061
)
 
(10,005
)
 
(16,533
)
 
(16,083
)
 
315

 
3,811

 
(16,218
)
 
(12,272
)
Our share of partially owned entities
114,677

 
121,009

 
45,502

 
45,867

 
69,175

 
75,142

 
(4,293
)
 
(8,082
)
 
64,882

 
67,060

Vornado's share
$
624,309

 
$
608,895

 
$
260,452

 
$
253,882

 
$
363,857

 
$
355,013

 
$
(21,579
)
 
$
(36,370
)
 
$
342,278

 
$
318,643

 
For the Year Ended December 31,
 
Total Revenues
 
Operating Expenses
 
NOI
 
Non-cash Adjustments(1)
 
NOI - cash basis
 
2017
 
2016
 
2017
 
2016
 
2017
 
2016
 
2017
 
2016
 
2017
 
2016
New York
$
1,779,307

 
$
1,713,374

 
$
756,670

 
$
716,754

 
$
1,022,637

 
$
996,620

 
$
(71,229
)
 
$
(140,992
)
 
$
951,408

 
$
855,628

Other
304,819

 
290,368

 
129,926

 
127,812

 
174,893

 
162,556

 
(5,800
)
 
(23,834
)
 
169,093

 
138,722

Consolidated total
2,084,126

 
2,003,742

 
886,596

 
844,566

 
1,197,530

 
1,159,176

 
(77,029
)
 
(164,826
)
 
1,120,501

 
994,350

Noncontrolling interests' share in consolidated subsidiaries
(104,568
)
 
(104,158
)
 
(39,257
)
 
(37,976
)
 
(65,311
)
 
(66,182
)
 
6,117

 
21,126

 
(59,194
)
 
(45,056
)
Our share of partially owned entities
444,043

 
444,231

 
174,879

 
173,117

 
269,164

 
271,114

 
(15,930
)
 
(26,777
)
 
253,234

 
244,337

Vornado's share
$
2,423,601

 
$
2,343,815

 
$
1,022,218

 
$
979,707

 
$
1,401,383

 
$
1,364,108

 
$
(86,842
)
 
$
(170,477
)
 
$
1,314,541

 
$
1,193,631

________________________________________
(1)
Includes adjustments for straight-line rents, amortization of acquired below-market leases, net and other.

- vi -


https://cdn.kscope.io/d83f209fa0c1cf984946656b60e89cf3-vornado1.jpg

NET OPERATING INCOME AT SHARE BY REGION (NON-GAAP)
(unaudited)
The following tables set forth the percentages of NOI by geographic region.
 
 
Three Months Ended December 31,
 
Year Ended December 31,
 
 
2017
 
2016
 
2017
 
2016
Region:
 
 
 
 
 
 
 
 
New York
 
89
%
 
90
%
 
89
%
 
89
%
theMART, Chicago (included in "Other" segment)
 
7
%
 
7
%
 
8
%
 
8
%
555 California Street, San Francisco (included in "Other" segment)
 
4
%
 
3
%
 
3
%
 
3
%
 
 
100
%
 
100
%
 
100
%
 
100
%

- vii -


https://cdn.kscope.io/d83f209fa0c1cf984946656b60e89cf3-vornado1.jpg

NON-GAAP RECONCILIATIONS
RECONCILIATION OF NOI AT SHARE TO SAME STORE NOI AT SHARE
(unaudited and in thousands)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
New York
 
theMART
 
555 California Street
NOI at share (non-GAAP) for the three months ended December 31, 2017
 
$
304,228

 
$
24,249

 
$
12,003

Less NOI at share from:
 
 
 
 
 
 
Acquisitions
 
(4,817
)
 
(46
)
 

Dispositions
 
(79
)
 

 

Development properties placed into and out of service
 
161

 

 

Lease termination income, net of straight-line and FAS 141 adjustments
 
(984
)
 

 

Other non-operating income, net
 
(12
)
 

 

Same store NOI at share (non-GAAP) for the three months ended December 31, 2017
 
$
298,497

 
$
24,203

 
$
12,003

 
 
 
 
 
 
 
NOI at share (non-GAAP) for the three months ended December 31, 2016
 
$
290,784

 
$
22,749

 
$
10,578

Less NOI at share from:
 
 
 
 
 
 
Acquisitions
 
36

 

 

Dispositions
 
(106
)
 

 

Development properties placed into and out of service
 
(280
)
 

 
296

Lease termination expense (income), net of straight-line and FAS 141 adjustments
 
586

 
(157
)
 

Other non-operating income, net
 
(679
)
 

 

Same store NOI at share (non-GAAP) for the three months ended December 31, 2016
 
$
290,341

 
$
22,592

 
$
10,874

 
 
 
 
 
 
 
Increase in same store NOI at share for the three months ended December 31, 2017 compared to December 31, 2016
 
$
8,156


$
1,611


$
1,129

 
 
 
 
 
 
 
% increase in same store NOI at share
 
2.8
%
 
7.1
%
 
10.4
%


- viii -


https://cdn.kscope.io/d83f209fa0c1cf984946656b60e89cf3-vornado1.jpg

NON-GAAP RECONCILIATIONS
 
 
 
 
 
 
RECONCILIATION OF NOI AT SHARE TO SAME STORE NOI AT SHARE
 
 
 
 
 
 
(unaudited and in thousands)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
New York
 
theMART
 
555 California Street
NOI at share (non-GAAP) for the year ended December 31, 2017
 
$
1,166,065

 
$
102,339

 
$
47,588

Less NOI at share from:
 
 
 
 
 
 
Acquisitions
 
(20,027
)
 
164

 

Dispositions
 
(698
)
 

 

Development properties placed into and out of service
 
816

 

 

Lease termination income, net of straight-line and FAS 141 adjustments
 
(1,973
)
 
(20
)
 

Other non-operating income, net
 
(2,303
)
 

 

Same store NOI at share (non-GAAP) for the year ended Other non-operating income
 
$
1,141,880

 
$
102,483

 
$
47,588

 
 
 
 
 
 
 
NOI at share (non-GAAP) for the year ended December 31, 2016
 
$
1,108,526

 
$
98,498

 
$
45,848

Less NOI at share from:
 
 
 
 
 
 
Acquisitions
 
(60
)
 

 

Dispositions
 
(3,107
)
 

 

Development properties placed into and out of service
 
82

 

 
1,079

Lease termination expense (income), net of straight-line and FAS 141 adjustments
 
10,559

 
(157
)
 
(238
)
Other non-operating income, net
 
(3,610
)
 

 

Same store NOI at share (non-GAAP) for the year ended December 31, 2016
 
$
1,112,390

 
$
98,341

 
$
46,689

 
 
 
 
 
 
 
Increase in same store NOI at share for the year ended December 31, 2017 compared to December 31, 2016
 
$
29,490


$
4,142


$
899

 
 
 
 
 
 
 
% increase in same store NOI at share
 
2.7
%
 
4.2
%
(1) 
1.9
%
________________________________________
(1)
The year ended December 31, 2016 includes a $2,000 reversal of an expense accrued in 2015. Excluding this amount, same store NOI increased by 6.4%.

- ix -


https://cdn.kscope.io/d83f209fa0c1cf984946656b60e89cf3-vornado1.jpg

NON-GAAP RECONCILIATIONS
RECONCILIATION OF NOI AT SHARE TO SAME STORE NOI AT SHARE
(unaudited and in thousands)
 
 
 
 
 
 
 
 
 
New York
 
theMART
 
555 California Street
NOI at share (non-GAAP) for the three months ended December 31, 2017
 
$
304,228

 
$
24,249

 
$
12,003

Less NOI at share from:
 
 
 
 
 
 
Acquisitions
 
2

 
(46
)
 

Dispositions
 
(8
)
 

 

Development properties placed into and out of service
 
161

 

 

Lease termination income, net of straight-line and FAS 141 adjustments
 
(984
)
 

 

Other non-operating income, net
 
(13
)
 

 

Same store NOI at share (non-GAAP) for the three months ended December 31, 2017
 
$
303,386

 
$
24,203

 
$
12,003

 
 
 
 
 
 
 
NOI at share (non-GAAP) for the three months ended September 30, 2017
 
$
298,494

 
$
26,019

 
$
11,519

Less NOI at share from:
 
 
 
 
 
 
Acquisitions
 

 
41

 

Dispositions
 
(15
)
 

 

Development properties placed into and out of service
 
192

 

 

Lease termination income, net of straight-line and FAS 141 adjustments
 
(185
)
 

 

Other non-operating income, net
 
(584
)
 

 

Same store NOI at share (non-GAAP) for the three months ended September 30, 2017
 
$
297,902

 
$
26,060

 
$
11,519

 
 
 
 
 
 
 
Increase (decrease) in same store NOI at share for the three months ended December 31, 2017 compared to September 30, 2017
 
$
5,484


$
(1,857
)

$
484

 
 
 
 
 
 
 
% increase (decrease) in same store NOI at share
 
1.8
%
 
(7.1
)%
(1) 
4.2
%
________________________________________
(1)
Excluding tradeshows seasonality, same store NOI increased by 0.3%.


- x -


https://cdn.kscope.io/d83f209fa0c1cf984946656b60e89cf3-vornado1.jpg

NON-GAAP RECONCILIATIONS
RECONCILIATION OF NOI AT SHARE - CASH BASIS TO SAME STORE NOI AT SHARE - CASH BASIS
(unaudited and in thousands)
 
 
 
 
 
 
 
 
 
New York
 
theMART
 
555 California Street
NOI at share - cash basis (non-GAAP) for the three months ended December 31, 2017
 
$
282,787

 
$
24,396

 
$
11,916

Less NOI at share - cash basis from:
 
 
 
 
 
 
Acquisitions
 
(3,987
)
 
(46
)
 

Dispositions
 
(79
)
 

 

Development properties placed into and out of service
 
160

 

 

Lease termination income
 
(1,393
)
 

 

Other non-operating income, net
 
(12
)
 

 

Same store NOI at share - cash basis (non-GAAP) for the three months ended December 31, 2017
 
$
277,476


$
24,350


$
11,916

 
 
 
 
 
 
 
NOI at share - cash basis (non-GAAP) for the three months ended December 31, 2016
 
$
261,237

 
$
21,660

 
$
8,702

Less NOI at share - cash basis from:
 
 
 
 
 
 
Acquisitions
 

 

 

Dispositions
 
(106
)
 

 

Development properties placed into and out of service
 
(141
)
 

 
296

Lease termination income
 
(602
)
 
(248
)
 

Other non-operating income, net
 
(1,082
)
 

 

Same store NOI at share - cash basis (non-GAAP) for the three months ended December 31, 2016
 
$
259,306


$
21,412


$
8,998

 
 
 
 
 
 
 
Increase in same store NOI at share - cash basis for the three months ended December 31, 2017 compared to December 31, 2016
 
$
18,170


$
2,938


$
2,918

 
 
 
 
 
 
 
% increase in same store NOI at share - cash basis
 
7.0
%
 
13.7
%
 
32.4
%

- xi -


https://cdn.kscope.io/d83f209fa0c1cf984946656b60e89cf3-vornado1.jpg

NON-GAAP RECONCILIATIONS
RECONCILIATION OF NOI AT SHARE - CASH BASIS TO SAME STORE NOI AT SHARE - CASH BASIS
(unaudited and in thousands)
 
 
 
 
 
 
 
 
 
New York
 
theMART
 
555 California Street
NOI at share - cash basis (non-GAAP) for the year ended December 31, 2017
 
$
1,086,863

 
$
99,242

 
$
45,281

Less NOI at share - cash basis from:
 
 
 
 
 
 
Acquisitions
 
(17,217
)
 
164

 

Dispositions
 
(698
)
 

 

Development properties placed into and out of service
 
814

 

 

Lease termination income
 
(4,927
)
 
(31
)
 

Other non-operating income, net
 
(3,021
)
 

 

Same store NOI at share - cash basis (non-GAAP) for the year ended December 31, 2017
 
$
1,061,814

 
$
99,375

 
$
45,281

 
 
 
 
 
 
 
NOI at share - cash basis (non-GAAP) for the year ended December 31, 2016
 
$
965,287

 
$
92,571

 
$
32,601

Less NOI at share - cash basis from:
 
 
 
 
 
 
Acquisitions
 
(13
)
 

 

Dispositions
 
(2,219
)
 

 

Development properties placed into and out of service
 
289

 

 
1,079

Lease termination income
 
(7,272
)
 
(248
)
 
(397
)
Other non-operating income, net
 
(2,362
)
 

 

Same store NOI at share - cash basis (non-GAAP) for the year ended December 31, 2016
 
$
953,710

 
$
92,323

 
$
33,283

 
 
 
 
 
 
 
Increase in same store NOI at share - cash basis for the year ended December 31, 2017 compared to December 31, 2016
 
$
108,104


$
7,052


$
11,998

 
 
 
 
 
 
 
% increase in same store NOI at share - cash basis
 
11.3
%
 
7.6
%
(1) 
36.0
%
________________________________________
(1)
The year ended December 31, 2016 includes a $2,000 reversal of an expense accrued in 2015. Excluding this amount, same store NOI - cash basis increased by 10.0%.

- xii -


https://cdn.kscope.io/d83f209fa0c1cf984946656b60e89cf3-vornado1.jpg

NON-GAAP RECONCILIATIONS
RECONCILIATION OF NOI AT SHARE - CASH BASIS TO SAME STORE NOI AT SHARE - CASH BASIS
(unaudited and in thousands)
 
 
 
 
 
 
 
 
 
New York
 
theMART
 
555 California Street
NOI at share - cash basis (non-GAAP) for the three months ended December 31, 2017
 
$
282,787

 
$
24,396

 
$
11,916

Less NOI at share - cash basis from:
 
 
 
 
 
 
Acquisitions
 
2

 
(46
)
 

Dispositions
 
(8
)
 

 

Development properties placed into and out of service
 
160

 

 

Lease termination income
 
(1,393
)
 

 

Other non-operating income, net
 
(13
)
 

 

Same store NOI at share - cash basis (non-GAAP) for the three months ended December 31, 2017
 
$
281,535

 
$
24,350

 
$
11,916

 
 
 
 
 
 
 
NOI at share - cash basis (non-GAAP) for the three months ended September 30, 2017
 
$
277,402

 
$
25,417

 
$
10,889

Less NOI at share - cash basis from:
 
 
 
 
 
 
Acquisitions
 

 
41

 

Dispositions
 
(15
)
 

 

Development properties placed into and out of service
 
194

 

 

Lease termination income
 
(285
)
 

 

Other non-operating income, net
 
(584
)
 

 

Same store NOI at share - cash basis (non-GAAP) for the three months ended September 30, 2017
 
$
276,712

 
$
25,458

 
$
10,889

 
 
 
 
 
 
 
Increase (decrease) in same store NOI at share- cash basis for the three months ended December 31, 2017 compared to September 30, 2017
 
$
4,823


$
(1,108
)

$
1,027

 
 
 
 
 
 
 
% increase (decrease) in same store NOI at share - cash basis
 
1.7
%
 
(4.4
)%
(1) 
9.4
%
________________________________________
(1)
Excluding tradeshows seasonality, same store NOI increased by 3.9%.


- xiii -


https://cdn.kscope.io/d83f209fa0c1cf984946656b60e89cf3-vornado1.jpg

NON-GAAP RECONCILIATIONS
RECONCILIATION OF CONSOLIDATED REVENUES TO OUR PRO RATA SHARE OF TOTAL ANNUALIZED REVENUES
(unaudited and in thousands)
 
 
 
 
Three Months Ended
December 31, 2017
 
Consolidated revenues
$
536,226

 
Noncontrolling interest adjustments
(26,594
)
 
Consolidated revenues at our share (non-GAAP)
509,632

 
Unconsolidated revenues at our share, excluding Toys "R" Us, Inc.
114,677

 
Our pro rata share of revenues (non-GAAP)
$
624,309

 
Our pro rata share of revenues (annualized) (non-GAAP)
$
2,497,236

 

RECONCILIATION OF CONSOLIDATED DEBT, NET (GAAP) TO CONTRACTUAL DEBT (NON-GAAP)
(unaudited and in thousands)
 
 
 
 
 
 
 
 
 
 
 
 
December 31, 2017
 
 
 
 
 
 
Consolidated
Debt, net
 
Deferred Financing
Costs, Net and Other
 
Contractual
Debt (non-GAAP)
 
 
 
 
 
Mortgages payable
$
8,137,139

 
$
66,700

 
$
8,203,839

 
 
 
 
 
Senior unsecured notes
843,614

 
6,386

 
850,000

 
 
 
 
 
$750 Million unsecured term loan
748,734

 
1,266

 
750,000

 
 
 
 
 
 
$
9,729,487

 
$
74,352

 
$
9,803,839


 

 


- xiv -