No. | No. | |||||
(State or Other | (Commission | (IRS Employer | ||||
Jurisdiction of Incorporation) | File Number) | Identification No.) |
No. | No. | |||||
(State or Other | (Commission | (IRS Employer | ||||
Jurisdiction of Incorporation) | File Number) | Identification No.) |
(Address of Principal Executive offices) | (Zip Code) |
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Registrant | Title of each class | Trading Symbol(s) | Name of each exchange on which registered | |||
Vornado Realty Trust | ||||||
Cumulative Redeemable Preferred Shares of beneficial interest, liquidation preference $25.00 per share | ||||||
Vornado Realty Trust | ||||||
Vornado Realty Trust | ||||||
Vornado Realty Trust |
VORNADO REALTY TRUST | ||
(Registrant) | ||
By: | /s/ Matthew Iocco | |
Name: | Matthew Iocco | |
Title: | Chief Accounting Officer (duly authorized officer and principal accounting officer) |
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) |
(Amounts in thousands, except per share amounts) | For the Three Months Ended June 30, | For the Six Months Ended June 30, | |||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
Net income attributable to common shareholders | $ | 2,400,195 | $ | 111,534 | $ | 2,581,683 | $ | 93,693 | |||||||
Per diluted share | $ | 12.56 | $ | 0.58 | $ | 13.51 | $ | 0.49 | |||||||
Certain (income) expense items that impact net income attributable to common shareholders: | |||||||||||||||
Net gain on transfer to Fifth Avenue and Times Square retail JV, net of $11,945 attributable to noncontrolling interests | $ | (2,559,154 | ) | $ | — | $ | (2,559,154 | ) | $ | — | |||||
Non-cash impairment losses and related write-offs, substantially 608 Fifth Avenue | 108,592 | — | 108,592 | — | |||||||||||
After-tax net gain on sale of 220 Central Park South ("220 CPS") condominium units | (88,921 | ) | — | (219,875 | ) | — | |||||||||
Our share of loss (income) from real estate fund investments | 20,758 | (551 | ) | 23,662 | (1,365 | ) | |||||||||
Mark-to-market (increase) decrease in Pennsylvania Real Estate Investment Trust ("PREIT") common shares (accounted for as a marketable security from March 12, 2019) | (1,313 | ) | — | 14,336 | — | ||||||||||
Net gains on sale of real estate | — | (24,449 | ) | — | (24,436 | ) | |||||||||
Mark-to-market (increase) decrease in Lexington Realty Trust ("Lexington") common shares (sold on March 1, 2019) | — | (15,883 | ) | (16,068 | ) | 16,992 | |||||||||
Profit participation on the April 2018 sale of 701 Seventh Avenue | — | (5,457 | ) | — | (5,457 | ) | |||||||||
Previously capitalized internal leasing costs(1) | — | (1,358 | ) | — | (2,706 | ) | |||||||||
Our share of loss from 666 Fifth Avenue Office Condominium (49.5% interest) | — | 1,269 | — | 4,761 | |||||||||||
Net gain from sale of Urban Edge Properties ("UE") common shares (sold on March 4, 2019) | — | — | (62,395 | ) | — | ||||||||||
Prepayment penalty in connection with redemption of $400 million 5.00% senior unsecured notes due January 2022 | — | — | 22,540 | — | |||||||||||
Our share of disputed additional New York City transfer taxes | — | — | — | 23,503 | |||||||||||
Preferred share issuance costs | — | — | — | 14,486 | |||||||||||
Other | 2,802 | 817 | 3,954 | 6,792 | |||||||||||
(2,517,236 | ) | (45,612 | ) | (2,684,408 | ) | 32,570 | |||||||||
Noncontrolling interests' share of above adjustments | 159,593 | 2,837 | 170,191 | (2,029 | ) | ||||||||||
Total of certain (income) expense items that impact net income attributable to common shareholders | $ | (2,357,643 | ) | $ | (42,775 | ) | $ | (2,514,217 | ) | $ | 30,541 | ||||
Net income attributable to common shareholders, as adjusted (non-GAAP) | $ | 42,552 | $ | 68,759 | $ | 67,466 | $ | 124,234 | |||||||
Per diluted share (non-GAAP) | $ | 0.22 | $ | 0.36 | $ | 0.35 | $ | 0.65 |
(Amounts in thousands, except per share amounts) | For the Three Months Ended June 30, | For the Six Months Ended June 30, | |||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
FFO attributable to common shareholders plus assumed conversions (non-GAAP)(2) | $ | 164,329 | $ | 194,653 | $ | 412,013 | $ | 329,653 | |||||||
Per diluted share (non-GAAP) | $ | 0.86 | $ | 1.02 | $ | 2.16 | $ | 1.72 | |||||||
Certain (income) expense items that impact FFO attributable to common shareholders plus assumed conversions: | |||||||||||||||
After-tax net gain on sale of 220 CPS condominium units | $ | (88,921 | ) | $ | — | $ | (219,875 | ) | $ | — | |||||
Non-cash impairment loss and related write-offs on 608 Fifth Avenue | 77,156 | — | 77,156 | — | |||||||||||
Our share of loss (income) from real estate fund investments | 20,758 | (551 | ) | 23,662 | (1,365 | ) | |||||||||
Profit participation on the April 2018 sale of 701 Seventh Avenue | — | (5,457 | ) | — | (5,457 | ) | |||||||||
Our share of FFO from 666 Fifth Avenue Office Condominium (49.5% interest) | — | (2,178 | ) | — | (2,041 | ) | |||||||||
Previously capitalized internal leasing costs(1) | — | (1,358 | ) | — | (2,706 | ) | |||||||||
Prepayment penalty in connection with redemption of $400 million 5.00% senior unsecured notes due January 2022 | — | — | 22,540 | — | |||||||||||
Our share of disputed additional New York City transfer taxes | — | — | — | 23,503 | |||||||||||
Preferred share issuance costs | — | — | — | 14,486 | |||||||||||
Other | 1,092 | 749 | 2,298 | 5,033 | |||||||||||
10,085 | (8,795 | ) | (94,219 | ) | 31,453 | ||||||||||
Noncontrolling interests' share of above adjustments | (639 | ) | 547 | 5,996 | (1,830 | ) | |||||||||
Total of certain expense (income) items that impact FFO attributable to common shareholders plus assumed conversions, net | $ | 9,446 | $ | (8,248 | ) | $ | (88,223 | ) | $ | 29,623 | |||||
FFO attributable to common shareholders plus assumed conversions, as adjusted (non-GAAP) | $ | 173,775 | $ | 186,405 | $ | 323,790 | $ | 359,276 | |||||||
Per diluted share (non-GAAP) | $ | 0.91 | $ | 0.98 | $ | 1.70 | $ | 1.88 |
(1) | "Net income, as adjusted" and "FFO, as adjusted" for the three and six months ended June 30, 2018 have been reduced by $1,358 and $2,706, or $0.01 and $0.01 per diluted share, respectively for previously capitalized internal leasing costs to present 2018 “as adjusted” financial results on a comparable basis with the current year as a result of the January 1, 2019 adoption of a new GAAP accounting standard under which internal leasing costs can no longer be capitalized. |
(2) | See page 11 for a reconciliation of our net income attributable to common shareholders to FFO attributable to common shareholders plus assumed conversions (non-GAAP) for the three and six months ended June 30, 2019 and 2018. |
• | 221,000 square feet of New York Office space (155,000 square feet at share) at an initial rent of $83.54 per square foot and a weighted average term of 7.2 years. The GAAP and cash mark-to-market rent on the 80,000 square feet of second generation space were positive 5.9% and 3.3%, respectively. Tenant improvements and leasing commissions were $9.83 per square foot per annum, or 11.8% of initial rent. |
• | 70,000 square feet of New York Retail space (67,000 square feet at share) at an initial rent of $162.44 per square foot and a weighted average term of 19.6 years. The GAAP and cash mark-to-market rent on the 64,000 square feet of second generation space were positive 44.4% and 18.7%, respectively. Tenant improvements and leasing commissions were $3.74 per square foot per annum, or 2.3% of initial rent. |
• | 30,000 square feet at theMART at an initial rent of $63.83 per square foot and a weighted average term of 4.1 years. The GAAP and cash mark-to-market rent on the 30,000 square feet of second generation space were positive 14.9% and 6.0%, respectively. Tenant improvements and leasing commissions were $1.52 per square foot per annum, or 2.4% of initial rent. |
• | 30,000 square feet at 555 California Street (21,000 square feet at share) at an initial rent of $86.00 per square foot and a weighted average term of 5.1 years. The GAAP and cash mark-to-market rent on the 21,000 square feet of second generation space were positive 32.2% and 12.8%, respectively. Tenant improvements and leasing commissions were $6.13 per square foot per annum, or 7.1% of initial rent. |
Total | New York(2) | theMART | 555 California Street | |||||||||
Same store NOI at share % increase (decrease)(1): | ||||||||||||
Three months ended June 30, 2019 compared to June 30, 2018 | 1.2 | % | (0.7 | )% | 12.1 | % | 13.0 | % | ||||
Six months ended June 30, 2019 compared to June 30, 2018 | 0.5 | % | (0.4 | )% | 4.7 | % | 10.2 | % | ||||
Three months ended June 30, 2019 compared to March 31, 2019 | 7.2 | % | 4.1 | % | 42.3 | % | 6.4 | % | ||||
Same store NOI at share - cash basis % increase(1): | ||||||||||||
Three months ended June 30, 2019 compared to June 30, 2018 | 4.3 | % | 2.5 | % | 15.5 | % | 12.9 | % | ||||
Six months ended June 30, 2019 compared to June 30, 2018 | 3.7 | % | 2.6 | % | 8.9 | % | 13.9 | % | ||||
Three months ended June 30, 2019 compared to March 31, 2019 | 8.3 | % | 5.5 | % | 38.1 | % | 5.8 | % |
(1) | See pages 13 through 18 for same store NOI at share and same store NOI at share - cash basis reconciliations. | |||
Increase | ||||
(2) | Excluding Hotel Pennsylvania, same store NOI at share % increase: | |||
Three months ended June 30, 2019 compared to June 30, 2018 | 0.0 | % | ||
Six months ended June 30, 2019 compared to June 30, 2018 | 0.3 | % | ||
Three months ended June 30, 2019 compared to March 31, 2019 | 0.0 | % | ||
Excluding Hotel Pennsylvania, same store NOI at share - cash basis % increase: | ||||
Three months ended June 30, 2019 compared to June 30, 2018 | 3.3 | % | ||
Six months ended June 30, 2019 compared to June 30, 2018 | 3.3 | % | ||
Three months ended June 30, 2019 compared to March 31, 2019 | 1.2 | % |
(Amounts in thousands) | For the Three Months Ended | For the Six Months Ended June 30, | |||||||||||||||||
June 30, | March 31, 2019 | ||||||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||||||
New York: | |||||||||||||||||||
Office(1) | $ | 179,592 | $ | 184,867 | $ | 183,540 | $ | 363,132 | $ | 372,023 | |||||||||
Retail(1) | 57,063 | 87,109 | 88,267 | 145,330 | 175,018 | ||||||||||||||
Residential | 5,908 | 6,338 | 6,045 | 11,953 | 12,479 | ||||||||||||||
Alexander's Inc. ("Alexander's") | 11,108 | 11,909 | 11,322 | 22,430 | 23,484 | ||||||||||||||
Hotel Pennsylvania | 4,031 | 5,644 | (5,816 | ) | (1,785 | ) | 1,459 | ||||||||||||
Total New York | 257,702 | 295,867 | 283,358 | 541,060 | 584,463 | ||||||||||||||
Other: | |||||||||||||||||||
theMART | 30,974 | 27,816 | 23,523 | 54,497 | 54,691 | ||||||||||||||
555 California Street | 15,358 | 13,660 | 14,501 | 29,859 | 27,171 | ||||||||||||||
Other investments | 4,875 | 17,086 | 16,390 | 21,265 | 37,140 | ||||||||||||||
Total Other | 51,207 | 58,562 | 54,414 | 105,621 | 119,002 | ||||||||||||||
NOI at share | $ | 308,909 | $ | 354,429 | $ | 337,772 | $ | 646,681 | $ | 703,465 |
(1) | Reflects the transfer of 45.4% of common equity in the properties contributed to the Fifth Avenue and Times Square JV on April 18, 2019. |
(Amounts in thousands) | For the Three Months Ended | For the Six Months Ended June 30, | |||||||||||||||||
June 30, | March 31, 2019 | ||||||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||||||
New York: | |||||||||||||||||||
Office(1) | $ | 178,806 | $ | 180,710 | $ | 184,370 | $ | 363,176 | $ | 358,909 | |||||||||
Retail(1) | 66,726 | 79,139 | 80,936 | 147,662 | 158,728 | ||||||||||||||
Residential | 5,303 | 5,463 | 5,771 | 11,074 | 11,062 | ||||||||||||||
Alexander's | 11,322 | 12,098 | 11,527 | 22,849 | 24,137 | ||||||||||||||
Hotel Pennsylvania | 3,982 | 5,744 | (5,864 | ) | (1,882 | ) | 1,591 | ||||||||||||
Total New York | 266,139 | 283,154 | 276,740 | 542,879 | 554,427 | ||||||||||||||
Other: | |||||||||||||||||||
theMART | 31,984 | 27,999 | 24,912 | 56,896 | 55,078 | ||||||||||||||
555 California Street | 15,595 | 13,808 | 14,745 | 30,340 | 26,634 | ||||||||||||||
Other investments | 4,939 | 16,987 | 16,194 | 21,133 | 36,897 | ||||||||||||||
Total Other | 52,518 | 58,794 | 55,851 | 108,369 | 118,609 | ||||||||||||||
NOI at share - cash basis | $ | 318,657 | $ | 341,948 | $ | 332,591 | $ | 651,248 | $ | 673,036 |
(1) | Reflects the transfer of 45.4% of common equity in the properties contributed to the Fifth Avenue and Times Square JV on April 18, 2019. |
(Amounts in thousands, except square feet) | ||||||||||||||||||
Property Rentable Sq. Ft. | Projected Incremental Cash Yield | |||||||||||||||||
Active Penn District Projects | Segment | Incremental Budget(1) | Amount Expended | Remainder to be Expended | Stabilization Year | |||||||||||||
Farley (95% interest) | New York | 845,000 | 1,030,000 | (2) | 438,581 | 591,419 | 2022 | 7.4% | ||||||||||
PENN2 - as expanded | New York | 1,795,000 | 750,000 | 26,713 | 723,287 | 2024 | 8.4% | |||||||||||
PENN1(3) | New York | 2,543,000 | 325,000 | 48,832 | 276,168 | N/A | 13.5%(3)(4) | |||||||||||
Districtwide Improvements | New York | N/A | 100,000 | — | 100,000 | N/A | N/A | |||||||||||
Total Active Penn District Projects | 2,205,000 | 514,126 | 1,690,874 | (5) | 8.3% |
(1) | Excluding debt and equity carry. |
(2) | Net of anticipated historic tax credits. |
(3) | Property is ground leased through 2098, as fully extended. Fair market value resets occur in 2023, 2048 and 2073. The 13.5% projected return is before the ground rent reset in 2023, which may be material. |
(4) | Achieved as existing leases roll; average remaining lease term 5.4 years. |
(5) | Expected to be funded from our balance sheet, principally from 220 CPS net sales proceeds. |
(Amounts in thousands, except unit, share, and per share amounts) | As of | ||||||
June 30, 2019 | December 31, 2018 | ||||||
ASSETS | |||||||
Real estate, at cost: | |||||||
Land | $ | 2,609,869 | $ | 3,306,280 | |||
Buildings and improvements | 7,813,812 | 10,110,992 | |||||
Development costs and construction in progress | 1,835,054 | 2,266,491 | |||||
Moynihan Train Hall development expenditures | 665,226 | 445,693 | |||||
Leasehold improvements and equipment | 118,428 | 108,427 | |||||
Total | 13,042,389 | 16,237,883 | |||||
Less accumulated depreciation and amortization | (2,894,202 | ) | (3,180,175 | ) | |||
Real estate, net | 10,148,187 | 13,057,708 | |||||
Right-of-use assets | 380,214 | — | |||||
Cash and cash equivalents | 922,604 | 570,916 | |||||
Restricted cash | 154,306 | 145,989 | |||||
Marketable securities | 41,081 | 152,198 | |||||
Tenant and other receivables, net of allowance for doubtful accounts of $4,154 as of December 31, 2018 | 85,153 | 73,322 | |||||
Investments in partially owned entities | 4,025,534 | 858,113 | |||||
Real estate fund investments | 306,596 | 318,758 | |||||
220 Central Park South condominium units ready for sale | 328,786 | 99,627 | |||||
Receivable arising from the straight-lining of rents, net of allowance of $1,644 as of December 31, 2018 | 749,198 | 935,131 | |||||
Deferred leasing costs, net of accumulated amortization of $187,478 and $207,529 | 357,511 | 400,313 | |||||
Identified intangible assets, net of accumulated amortization of $98,187 and $172,114 | 32,478 | 136,781 | |||||
Other assets | 382,209 | 431,938 | |||||
$ | 17,913,857 | $ | 17,180,794 | ||||
LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND EQUITY | |||||||
Mortgages payable, net | $ | 6,256,808 | $ | 8,167,798 | |||
Senior unsecured notes, net | 445,465 | 844,002 | |||||
Unsecured term loan, net | 745,331 | 744,821 | |||||
Unsecured revolving credit facilities | 80,000 | 80,000 | |||||
Lease liabilities | 483,011 | — | |||||
Moynihan Train Hall obligation | 665,226 | 445,693 | |||||
Accounts payable and accrued expenses | 392,581 | 430,976 | |||||
Deferred revenue | 66,835 | 167,730 | |||||
Deferred compensation plan | 99,879 | 96,523 | |||||
Other liabilities | 320,515 | 311,806 | |||||
Total liabilities | 9,555,651 | 11,289,349 | |||||
Commitments and contingencies | |||||||
Redeemable noncontrolling interests: | |||||||
Class A units - 13,377,956 and 12,544,477 units outstanding | 857,527 | 778,134 | |||||
Series D cumulative redeemable preferred units - 141,401 and 177,101 units outstanding | 4,535 | 5,428 | |||||
Total redeemable noncontrolling interests | 862,062 | 783,562 | |||||
Shareholders' equity: | |||||||
Preferred shares of beneficial interest: no par value per share; authorized 110,000,000 shares; issued and outstanding 36,797,280 and 36,798,580 shares | 891,256 | 891,294 | |||||
Common shares of beneficial interest: $0.04 par value per share; authorized 250,000,000 shares; issued and outstanding 190,813,470 and 190,535,499 shares | 7,611 | 7,600 | |||||
Additional capital | 7,845,748 | 7,725,857 | |||||
Earnings less than distributions | (1,845,995 | ) | (4,167,184 | ) | |||
Accumulated other comprehensive (loss) income | (38,066 | ) | 7,664 | ||||
Total shareholders' equity | 6,860,554 | 4,465,231 | |||||
Noncontrolling interests in consolidated subsidiaries | 635,590 | 642,652 | |||||
Total equity | 7,496,144 | 5,107,883 | |||||
$ | 17,913,857 | $ | 17,180,794 |
(Amounts in thousands, except per share amounts) | For the Three Months Ended June 30, | For the Six Months Ended June 30, | |||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
Revenues | $ | 463,103 | $ | 541,818 | $ | 997,771 | $ | 1,078,255 | |||||||
Income from continuing operations | $ | 2,596,633 | $ | 104,655 | $ | 2,809,814 | $ | 105,300 | |||||||
Income (loss) from discontinued operations | 60 | 683 | (77 | ) | 320 | ||||||||||
Net income | 2,596,693 | 105,338 | 2,809,737 | 105,620 | |||||||||||
Less net (income) loss attributable to noncontrolling interests in: | |||||||||||||||
Consolidated subsidiaries | (21,451 | ) | 26,175 | (28,271 | ) | 34,449 | |||||||||
Operating Partnership | (162,515 | ) | (7,445 | ) | (174,717 | ) | (6,321 | ) | |||||||
Net income attributable to Vornado | 2,412,727 | 124,068 | 2,606,749 | 133,748 | |||||||||||
Preferred share dividends | (12,532 | ) | (12,534 | ) | (25,066 | ) | (25,569 | ) | |||||||
Preferred share issuance costs | — | — | — | (14,486 | ) | ||||||||||
NET INCOME attributable to common shareholders | $ | 2,400,195 | $ | 111,534 | $ | 2,581,683 | $ | 93,693 | |||||||
INCOME PER COMMON SHARE – BASIC: | |||||||||||||||
Net income per common share | $ | 12.58 | $ | 0.59 | $ | 13.53 | $ | 0.49 | |||||||
Weighted average shares outstanding | 190,781 | 190,200 | 190,735 | 190,141 | |||||||||||
INCOME PER COMMON SHARE – DILUTED: | |||||||||||||||
Net income per common share | $ | 12.56 | $ | 0.58 | $ | 13.51 | $ | 0.49 | |||||||
Weighted average shares outstanding | 191,058 | 191,168 | 191,030 | 191,190 | |||||||||||
FFO attributable to common shareholders plus assumed conversions (non-GAAP) | $ | 164,329 | $ | 194,653 | $ | 412,013 | $ | 329,653 | |||||||
Per diluted share (non-GAAP) | $ | 0.86 | $ | 1.02 | $ | 2.16 | $ | 1.72 | |||||||
FFO attributable to common shareholders plus assumed conversions, as adjusted (non-GAAP) | $ | 173,775 | $ | 186,405 | $ | 323,790 | $ | 359,276 | |||||||
Per diluted share (non-GAAP) | $ | 0.91 | $ | 0.98 | $ | 1.70 | $ | 1.88 | |||||||
Weighted average shares used in determining FFO per diluted share | 191,058 | 191,168 | 191,026 | 191,113 |
(Amounts in thousands, except per share amounts) | For the Three Months Ended June 30, | For the Six Months Ended June 30, | |||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
Reconciliation of our net income attributable to common shareholders to FFO attributable to common shareholders plus assumed conversions: | |||||||||||||||
Net income attributable to common shareholders | $ | 2,400,195 | $ | 111,534 | $ | 2,581,683 | $ | 93,693 | |||||||
Per diluted share | $ | 12.56 | $ | 0.58 | $ | 13.51 | $ | 0.49 | |||||||
FFO adjustments: | |||||||||||||||
Depreciation and amortization of real property | $ | 105,453 | $ | 103,599 | $ | 213,936 | $ | 204,009 | |||||||
Net gains on sale of real estate | — | (24,177 | ) | — | (24,177 | ) | |||||||||
Real estate impairment losses | 31,436 | — | 31,436 | — | |||||||||||
Net gain on transfer to Fifth Avenue and Times Square JV, net of $11,945 attributable to noncontrolling interests | (2,559,154 | ) | — | (2,559,154 | ) | — | |||||||||
Net gain from sale of UE common shares (sold on March 4, 2019) | — | — | (62,395 | ) | — | ||||||||||
(Increase) decrease in fair value of marketable securities: | |||||||||||||||
PREIT | (1,313 | ) | — | 14,336 | — | ||||||||||
Lexington (sold on March 1, 2019) | — | (15,883 | ) | (16,068 | ) | 16,992 | |||||||||
Other | 1 | (1 | ) | (41 | ) | 110 | |||||||||
Proportionate share of adjustments to equity in net income (loss) of partially owned entities to arrive at FFO: | |||||||||||||||
Depreciation and amortization of real property | 34,631 | 25,488 | 59,621 | 53,594 | |||||||||||
Net gains on sale of real estate | — | (272 | ) | — | (577 | ) | |||||||||
Decrease (increase) in fair value of marketable securities | 1,709 | (140 | ) | 1,697 | 1,534 | ||||||||||
(2,387,237 | ) | 88,614 | (2,316,632 | ) | 251,485 | ||||||||||
Noncontrolling interests' share of above adjustments | 151,357 | (5,511 | ) | 146,933 | (15,557 | ) | |||||||||
FFO adjustments, net | $ | (2,235,880 | ) | $ | 83,103 | $ | (2,169,699 | ) | $ | 235,928 | |||||
FFO attributable to common shareholders | $ | 164,315 | $ | 194,637 | $ | 411,984 | $ | 329,621 | |||||||
Convertible preferred share dividends | 14 | 16 | 29 | 32 | |||||||||||
FFO attributable to common shareholders plus assumed conversions | $ | 164,329 | $ | 194,653 | $ | 412,013 | $ | 329,653 | |||||||
Per diluted share | $ | 0.86 | $ | 1.02 | $ | 2.16 | $ | 1.72 | |||||||
Reconciliation of Weighted Average Shares | |||||||||||||||
Weighted average common shares outstanding | 190,781 | 190,200 | 190,735 | 190,141 | |||||||||||
Effect of dilutive securities: | |||||||||||||||
Employee stock options and restricted share awards | 243 | 930 | 256 | 934 | |||||||||||
Convertible preferred shares | 34 | 38 | 35 | 38 | |||||||||||
Denominator for FFO per diluted share | 191,058 | 191,168 | 191,026 | 191,113 |
For the Three Months Ended | For the Six Months Ended June 30, | ||||||||||||||||||
(Amounts in thousands) | June 30, | March 31, 2019 | |||||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||||||
Net income | $ | 2,596,693 | $ | 105,338 | $ | 213,044 | $ | 2,809,737 | $ | 105,620 | |||||||||
Deduct: | |||||||||||||||||||
Net gain on transfer to Fifth Avenue and Times Square JV | (2,571,099 | ) | — | — | (2,571,099 | ) | — | ||||||||||||
(Income) loss from partially owned entities | (22,873 | ) | (8,757 | ) | (7,320 | ) | (30,193 | ) | 1,147 | ||||||||||
Interest and other investment income, net | (7,840 | ) | (30,892 | ) | (5,045 | ) | (12,885 | ) | (6,508 | ) | |||||||||
Net gains on disposition of wholly owned and partially owned assets | (111,713 | ) | (23,559 | ) | (220,294 | ) | (332,007 | ) | (23,559 | ) | |||||||||
NOI attributable to noncontrolling interests in consolidated subsidiaries | (16,416 | ) | (17,160 | ) | (17,403 | ) | (33,819 | ) | (34,472 | ) | |||||||||
(Income) loss from discontinued operations | (60 | ) | (683 | ) | 137 | 77 | (320 | ) | |||||||||||
Add: | |||||||||||||||||||
Loss from real estate fund investments | 15,803 | 28,976 | 167 | 15,970 | 37,783 | ||||||||||||||
Depreciation and amortization expense | 113,035 | 111,846 | 116,709 | 229,744 | 220,532 | ||||||||||||||
General and administrative expense | 38,872 | 34,427 | 58,020 | 96,892 | 76,960 | ||||||||||||||
Transaction related costs, impairment losses and other | 101,590 | 1,017 | 149 | 101,739 | 14,173 | ||||||||||||||
NOI from partially owned entities | 82,974 | 65,752 | 67,402 | 150,376 | 133,265 | ||||||||||||||
Interest and debt expense | 63,029 | 87,657 | 102,463 | 165,492 | 175,823 | ||||||||||||||
Income tax expense | 26,914 | 467 | 29,743 | 56,657 | 3,021 | ||||||||||||||
NOI at share | 308,909 | 354,429 | 337,772 | 646,681 | 703,465 | ||||||||||||||
Non-cash adjustments for straight-line rents, amortization of acquired below-market leases, net, and other | 9,748 | (12,481 | ) | (5,181 | ) | 4,567 | (30,429 | ) | |||||||||||
NOI at share - cash basis | $ | 318,657 | $ | 341,948 | $ | 332,591 | $ | 651,248 | $ | 673,036 |
(Amounts in thousands) | Total | New York | theMART | 555 California Street | Other | |||||||||||||||
NOI at share for the three months ended June 30, 2019 | $ | 308,909 | $ | 257,702 | $ | 30,974 | $ | 15,358 | $ | 4,875 | ||||||||||
Less NOI at share from: | ||||||||||||||||||||
Acquisitions | 8 | 8 | — | — | — | |||||||||||||||
Change in ownership interests in properties contributed to Fifth Avenue and Times Square JV | (5,479 | ) | (5,479 | ) | — | — | — | |||||||||||||
Dispositions | (50 | ) | (50 | ) | — | — | — | |||||||||||||
Development properties | (11,392 | ) | (11,392 | ) | — | — | — | |||||||||||||
Lease termination income, net of write-offs of straight-line receivables and acquired below-market leases, net | 2,979 | 2,979 | — | — | — | |||||||||||||||
Other non-same store expense (income), net | 85 | 4,984 | (98 | ) | 74 | (4,875 | ) | |||||||||||||
Same store NOI at share for the three months ended June 30, 2019 | $ | 295,060 | $ | 248,752 | $ | 30,876 | $ | 15,432 | $ | — | ||||||||||
NOI at share for the three months ended June 30, 2018 | $ | 354,429 | $ | 295,867 | $ | 27,816 | $ | 13,660 | $ | 17,086 | ||||||||||
Less NOI at share from: | ||||||||||||||||||||
Acquisitions | (3 | ) | (3 | ) | — | — | — | |||||||||||||
Change in ownership interests in properties contributed to Fifth Avenue and Times Square JV | (26,365 | ) | (26,365 | ) | — | — | — | |||||||||||||
Dispositions | (309 | ) | (309 | ) | — | — | — | |||||||||||||
Development properties | (16,451 | ) | (16,451 | ) | — | — | — | |||||||||||||
Lease termination income, net of write-offs of straight-line receivables and acquired below-market leases, net | 1,984 | 1,984 | — | — | — | |||||||||||||||
Other non-same store income, net | (21,689 | ) | (4,323 | ) | (280 | ) | — | (17,086 | ) | |||||||||||
Same store NOI at share for the three months ended June 30, 2018 | $ | 291,596 | $ | 250,400 | $ | 27,536 | $ | 13,660 | $ | — | ||||||||||
Increase (decrease) in same store NOI at share for the three months ended June 30, 2019 compared to June 30, 2018 | $ | 3,464 | $ | (1,648 | ) | $ | 3,340 | $ | 1,772 | $ | — | |||||||||
% increase (decrease) in same store NOI at share | 1.2 | % | (0.7 | )% | (1) | 12.1 | % | 13.0 | % | — | % |
(1) | Excluding Hotel Pennsylvania, same store NOI at share was flat. |
(Amounts in thousands) | Total | New York | theMART | 555 California Street | Other | |||||||||||||||
NOI at share - cash basis for the three months ended June 30, 2019 | $ | 318,657 | $ | 266,139 | $ | 31,984 | $ | 15,595 | $ | 4,939 | ||||||||||
Less NOI at share - cash basis from: | ||||||||||||||||||||
Acquisitions | 8 | 8 | — | — | — | |||||||||||||||
Change in ownership interests in properties contributed to Fifth Avenue and Times Square JV | (5,183 | ) | (5,183 | ) | — | — | — | |||||||||||||
Dispositions | (50 | ) | (50 | ) | — | — | — | |||||||||||||
Development properties | (13,005 | ) | (13,005 | ) | — | — | — | |||||||||||||
Lease termination income | (1,606 | ) | (1,606 | ) | — | — | — | |||||||||||||
Other non-same store income, net | (9,740 | ) | (4,703 | ) | (98 | ) | — | (4,939 | ) | |||||||||||
Same store NOI at share - cash basis for the three months ended June 30, 2019 | $ | 289,081 | $ | 241,600 | $ | 31,886 | $ | 15,595 | $ | — | ||||||||||
NOI at share - cash basis for the three months ended June 30, 2018 | $ | 341,948 | $ | 283,154 | $ | 27,999 | $ | 13,808 | $ | 16,987 | ||||||||||
Less NOI at share - cash basis from: | ||||||||||||||||||||
Acquisitions | (3 | ) | (3 | ) | — | — | — | |||||||||||||
Change in ownership interests in properties contributed to Fifth Avenue and Times Square JV | (24,732 | ) | (24,732 | ) | — | — | — | |||||||||||||
Dispositions | (240 | ) | (240 | ) | — | — | — | |||||||||||||
Development properties | (17,489 | ) | (17,489 | ) | — | — | — | |||||||||||||
Lease termination income | — | — | — | — | — | |||||||||||||||
Other non-same store income, net | (22,345 | ) | (4,960 | ) | (398 | ) | — | (16,987 | ) | |||||||||||
Same store NOI at share - cash basis for the three months ended June 30, 2018 | $ | 277,139 | $ | 235,730 | $ | 27,601 | $ | 13,808 | $ | — | ||||||||||
Increase in same store NOI at share - cash basis for the three months ended June 30, 2019 compared to June 30, 2018 | $ | 11,942 | $ | 5,870 | $ | 4,285 | $ | 1,787 | $ | — | ||||||||||
% increase in same store NOI at share - cash basis | 4.3 | % | 2.5 | % | (1) | 15.5 | % | 12.9 | % | — | % |
(1) | Excluding Hotel Pennsylvania, same store NOI at share - cash basis increased by 3.3%. |
(Amounts in thousands) | Total | New York | theMART | 555 California Street | Other | |||||||||||||||
NOI at share for the three months ended June 30, 2019 | $ | 308,909 | $ | 257,702 | $ | 30,974 | $ | 15,358 | $ | 4,875 | ||||||||||
Less NOI at share from: | ||||||||||||||||||||
Acquisitions | (5 | ) | (5 | ) | — | — | — | |||||||||||||
Change in ownership interests in properties contributed to Fifth Avenue and Times Square JV | (5,479 | ) | (5,479 | ) | — | — | — | |||||||||||||
Dispositions | (50 | ) | (50 | ) | — | — | — | |||||||||||||
Development properties | (11,392 | ) | (11,392 | ) | — | — | — | |||||||||||||
Lease termination income, net of write-offs of straight-line receivables and acquired below-market leases, net | 2,979 | 2,979 | — | — | — | |||||||||||||||
Other non-same store expense (income), net | 85 | 4,984 | (98 | ) | 74 | (4,875 | ) | |||||||||||||
Same store NOI at share for the three months ended June 30, 2019 | $ | 295,047 | $ | 248,739 | $ | 30,876 | $ | 15,432 | $ | — | ||||||||||
NOI at share for the three months ended March 31, 2019 | $ | 337,772 | $ | 283,358 | $ | 23,523 | $ | 14,501 | $ | 16,390 | ||||||||||
Less NOI at share from: | ||||||||||||||||||||
Change in ownership interests in properties contributed to Fifth Avenue and Times Square JV | (30,292 | ) | (30,292 | ) | — | — | — | |||||||||||||
Dispositions | 3 | 3 | — | — | — | |||||||||||||||
Development properties | (11,460 | ) | (11,460 | ) | — | — | — | |||||||||||||
Lease termination income, net of write-offs of straight-line receivables and acquired below-market leases, net | 1,902 | 1,902 | — | — | — | |||||||||||||||
Other non-same store income, net | (22,743 | ) | (4,522 | ) | (1,831 | ) | — | (16,390 | ) | |||||||||||
Same store NOI at share for the three months ended March 31, 2019 | $ | 275,182 | $ | 238,989 | $ | 21,692 | $ | 14,501 | $ | — | ||||||||||
Increase in same store NOI at share for the three months ended June 30, 2019 compared to March 31, 2019 | $ | 19,865 | $ | 9,750 | $ | 9,184 | $ | 931 | $ | — | ||||||||||
% increase in same store NOI at share | 7.2 | % | 4.1 | % | (1) | 42.3 | % | 6.4 | % | — | % |
(1) | Excluding Hotel Pennsylvania, same store NOI at share was flat. |
(Amounts in thousands) | Total | New York | theMART | 555 California Street | Other | |||||||||||||||
NOI at share - cash basis for the three months ended June 30, 2019 | $ | 318,657 | $ | 266,139 | $ | 31,984 | $ | 15,595 | $ | 4,939 | ||||||||||
Less NOI at share - cash basis from: | ||||||||||||||||||||
Acquisitions | (5 | ) | (5 | ) | — | — | — | |||||||||||||
Change in ownership interests in properties contributed to Fifth Avenue and Times Square JV | (5,183 | ) | (5,183 | ) | — | — | — | |||||||||||||
Dispositions | (50 | ) | (50 | ) | — | — | — | |||||||||||||
Development properties | (13,005 | ) | (13,005 | ) | — | — | — | |||||||||||||
Lease termination income | (1,606 | ) | (1,606 | ) | — | — | — | |||||||||||||
Other non-same store income, net | (9,740 | ) | (4,703 | ) | (98 | ) | — | (4,939 | ) | |||||||||||
Same store NOI at share - cash basis for the three months ended June 30, 2019 | $ | 289,068 | $ | 241,587 | $ | 31,886 | $ | 15,595 | $ | — | ||||||||||
NOI at share - cash basis for the three months ended March 31, 2019 | $ | 332,591 | $ | 276,740 | $ | 24,912 | $ | 14,745 | $ | 16,194 | ||||||||||
Less NOI at share - cash basis from: | ||||||||||||||||||||
Change in ownership interests in properties contributed to Fifth Avenue and Times Square JV | (27,722 | ) | (27,722 | ) | — | — | — | |||||||||||||
Dispositions | 2 | 2 | — | — | — | |||||||||||||||
Development properties | (14,184 | ) | (14,184 | ) | — | — | — | |||||||||||||
Lease termination income | (429 | ) | (429 | ) | — | — | — | |||||||||||||
Other non-same store income, net | (23,406 | ) | (5,381 | ) | (1,831 | ) | — | (16,194 | ) | |||||||||||
Same store NOI at share - cash basis for the three months ended March 31, 2019 | $ | 266,852 | $ | 229,026 | $ | 23,081 | $ | 14,745 | $ | — | ||||||||||
Increase in same store NOI at share - cash basis for the three months ended June 30, 2019 compared to March 31, 2019 | $ | 22,216 | $ | 12,561 | $ | 8,805 | $ | 850 | $ | — | ||||||||||
% increase in same store NOI at share - cash basis | 8.3 | % | 5.5 | % | (1) | 38.1 | % | 5.8 | % | — | % |
(1) | Excluding Hotel Pennsylvania, same store NOI at share - cash basis increased by 1.2%. |
(Amounts in thousands) | Total | New York | theMART | 555 California Street | Other | |||||||||||||||
NOI at share for the six months ended June 30, 2019 | $ | 646,681 | $ | 541,060 | $ | 54,497 | $ | 29,859 | $ | 21,265 | ||||||||||
Less NOI at share from: | ||||||||||||||||||||
Acquisitions | (219 | ) | (219 | ) | — | — | — | |||||||||||||
Change in ownership interests in properties contributed to Fifth Avenue and Times Square JV | (5,479 | ) | (5,479 | ) | — | — | — | |||||||||||||
Dispositions | (47 | ) | (47 | ) | — | — | — | |||||||||||||
Development properties | (23,101 | ) | (23,101 | ) | — | — | — | |||||||||||||
Lease termination income, net of write-offs of straight-line receivables and acquired below-market leases, net | 4,881 | 4,881 | — | — | — | |||||||||||||||
Other non-same store (income) expense, net | (18,697 | ) | 4,424 | (1,930 | ) | 74 | (21,265 | ) | ||||||||||||
Same store NOI at share for the six months ended June 30, 2019 | $ | 604,019 | $ | 521,519 | $ | 52,567 | $ | 29,933 | $ | — | ||||||||||
NOI at share for the six months ended June 30, 2018 | $ | 703,465 | $ | 584,463 | $ | 54,691 | $ | 27,171 | $ | 37,140 | ||||||||||
Less NOI at share from: | ||||||||||||||||||||
Acquisitions | (124 | ) | (124 | ) | — | — | — | |||||||||||||
Change in ownership interests in properties contributed to Fifth Avenue and Times Square JV | (26,365 | ) | (26,365 | ) | — | — | — | |||||||||||||
Dispositions | (371 | ) | (371 | ) | — | — | — | |||||||||||||
Development properties | (30,138 | ) | (30,138 | ) | — | — | — | |||||||||||||
Lease termination income, net of write-offs of straight-line receivables and acquired below-market leases, net | 857 | 857 | — | — | — | |||||||||||||||
Other non-same store income, net | (46,492 | ) | (4,873 | ) | (4,479 | ) | — | (37,140 | ) | |||||||||||
Same store NOI at share for the six months ended June 30, 2018 | $ | 600,832 | $ | 523,449 | $ | 50,212 | $ | 27,171 | $ | — | ||||||||||
Increase (decrease) in same store NOI at share for the six months ended June 30, 2019 compared to June 30, 2018 | $ | 3,187 | $ | (1,930 | ) | $ | 2,355 | $ | 2,762 | $ | — | |||||||||
% increase (decrease) in same store NOI at share | 0.5 | % | (0.4 | )% | (1) | 4.7 | % | 10.2 | % | — | % |
(1) | Excluding Hotel Pennsylvania, same store NOI at share increased by 0.3%. |
(Amounts in thousands) | Total | New York | theMART | 555 California Street | Other | |||||||||||||||
NOI at share - cash basis for the six months ended June 30, 2019 | $ | 651,248 | $ | 542,879 | $ | 56,896 | $ | 30,340 | $ | 21,133 | ||||||||||
Less NOI at share - cash basis from: | ||||||||||||||||||||
Acquisitions | (220 | ) | (220 | ) | — | — | — | |||||||||||||
Change in ownership interests in properties contributed to Fifth Avenue and Times Square JV | (5,183 | ) | (5,183 | ) | — | — | — | |||||||||||||
Dispositions | (47 | ) | (47 | ) | — | — | — | |||||||||||||
Development properties | (27,291 | ) | (27,291 | ) | — | — | — | |||||||||||||
Lease termination income | (2,035 | ) | (2,035 | ) | — | — | — | |||||||||||||
Other non-same store income, net | (28,326 | ) | (5,264 | ) | (1,929 | ) | — | (21,133 | ) | |||||||||||
Same store NOI at share - cash basis for the six months ended June 30, 2019 | $ | 588,146 | $ | 502,839 | $ | 54,967 | $ | 30,340 | $ | — | ||||||||||
NOI at share - cash basis for the six months ended June 30, 2018 | $ | 673,036 | $ | 554,427 | $ | 55,078 | $ | 26,634 | $ | 36,897 | ||||||||||
Less NOI at share - cash basis from: | ||||||||||||||||||||
Acquisitions | (124 | ) | (124 | ) | — | — | — | |||||||||||||
Change in ownership interests in properties contributed to Fifth Avenue and Times Square JV | (24,732 | ) | (24,732 | ) | — | — | — | |||||||||||||
Dispositions | (306 | ) | (306 | ) | — | — | — | |||||||||||||
Development properties | (32,434 | ) | (32,434 | ) | — | — | — | |||||||||||||
Lease termination income | (1,061 | ) | (1,061 | ) | — | — | — | |||||||||||||
Other non-same store income, net | (47,004 | ) | (5,509 | ) | (4,598 | ) | — | (36,897 | ) | |||||||||||
Same store NOI at share - cash basis for the six months ended June 30, 2018 | $ | 567,375 | $ | 490,261 | $ | 50,480 | $ | 26,634 | $ | — | ||||||||||
Increase in same store NOI at share - cash basis for the six months ended June 30, 2019 compared to June 30, 2018 | $ | 20,771 | $ | 12,578 | $ | 4,487 | $ | 3,706 | $ | — | ||||||||||
% increase in same store NOI at share - cash basis | 3.7 | % | 2.6 | % | (1) | 8.9 | % | 13.9 | % | — | % |
(1) | Excluding Hotel Pennsylvania, same store NOI at share - cash basis increased by 3.3%. |
INDEX | |||
Page | |||
BUSINESS DEVELOPMENTS | - | ||
FINANCIAL INFORMATION | |||
Financial Highlights | |||
Net Income Attributable to Common Shareholders (Consolidated and by Segment) | - | ||
Net Operating Income at Share (by Segment and by Subsegment) | - | ||
Same Store NOI at Share and NOI at Share - Cash Basis and NOI at Share By Region | |||
Consolidated Balance Sheets | |||
LEASING ACTIVITY AND LEASE EXPIRATIONS | |||
Leasing Activity | - | ||
Leasing Expirations | - | ||
TRAILING TWELVE MONTH PRO-FORMA CASH NOI AT SHARE | |||
DEBT AND CAPITALIZATION | |||
Capital Structure | |||
Common Shares Data | |||
Debt Analysis | |||
Debt Maturities | |||
UNCONSOLIDATED JOINT VENTURES | - | ||
DEVELOPMENT ACTIVITY AND CAPITAL EXPENDITURES | |||
Penn District Active Development/Redevelopment Summary | |||
Other Development/Redevelopment Summary | |||
Capital Expenditures, Tenant Improvements and Leasing Commissions | - | ||
PROPERTY STATISTICS | |||
Square Footage | |||
Top 30 Tenants | |||
Occupancy and Residential Statistics | |||
Property Table | - | ||
EXECUTIVE OFFICERS AND RESEARCH COVERAGE | |||
APPENDIX: DEFINITIONS AND NON-GAAP RECONCILIATIONS | |||
Definitions | |||
Reconciliations | - |
BUSINESS DEVELOPMENTS |
BUSINESS DEVELOPMENTS |
BUSINESS DEVELOPMENTS |
BUSINESS DEVELOPMENTS |
FINANCIAL HIGHLIGHTS (unaudited) | |||||||||||||||||||
(Amounts in thousands, except per share amounts) | |||||||||||||||||||
For the Three Months Ended | For the Six Months Ended June 30, | ||||||||||||||||||
June 30, | March 31, 2019 | ||||||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||||||
Total revenues | $ | 463,103 | $ | 541,818 | $ | 534,668 | $ | 997,771 | $ | 1,078,255 | |||||||||
Net income attributable to common shareholders | $ | 2,400,195 | $ | 111,534 | $ | 181,488 | $ | 2,581,683 | $ | 93,693 | |||||||||
Per common share: | |||||||||||||||||||
Basic | $ | 12.58 | $ | 0.59 | $ | 0.95 | $ | 13.53 | $ | 0.49 | |||||||||
Diluted | $ | 12.56 | $ | 0.58 | $ | 0.95 | $ | 13.51 | $ | 0.49 | |||||||||
Net income attributable to common shareholders, as adjusted (non-GAAP) | $ | 42,552 | $ | 68,759 | $ | 24,814 | $ | 67,466 | $ | 124,234 | |||||||||
Per diluted share (non-GAAP) | $ | 0.22 | $ | 0.36 | $ | 0.13 | $ | 0.35 | $ | 0.65 | |||||||||
FFO attributable to common shareholders plus assumed conversions, as adjusted (non-GAAP) | $ | 173,775 | $ | 186,405 | $ | 149,939 | $ | 323,790 | $ | 359,276 | |||||||||
Per diluted share (non-GAAP) | $ | 0.91 | $ | 0.98 | $ | 0.79 | $ | 1.70 | $ | 1.88 | |||||||||
FFO attributable to common shareholders plus assumed conversions (non-GAAP) | $ | 164,329 | $ | 194,653 | $ | 247,684 | $ | 412,013 | $ | 329,653 | |||||||||
FFO - Operating Partnership Basis ("OP Basis") (non-GAAP) | $ | 175,013 | $ | 207,061 | $ | 263,697 | $ | 438,682 | $ | 350,683 | |||||||||
Per diluted share (non-GAAP) | $ | 0.86 | $ | 1.02 | $ | 1.30 | $ | 2.16 | $ | 1.72 | |||||||||
Dividends per common share | $ | 0.66 | $ | 0.63 | $ | 0.66 | $ | 1.32 | $ | 1.26 | |||||||||
FFO payout ratio (based on FFO attributable to common shareholders plus assumed conversions, as adjusted) | 72.5 | % | 64.3 | % | 83.5 | % | 77.6 | % | 67.0 | % | |||||||||
FAD payout ratio | 95.7 | % | 94.0 | % | 86.8 | % | 91.0 | % | 92.6 | % | |||||||||
Weighted average shares used in determining FFO attributable to common shareholders plus assumed conversions per diluted share (REIT basis) | 191,058 | 191,168 | 190,996 | 191,026 | 191,113 | ||||||||||||||
Convertible units: | |||||||||||||||||||
Class A | 12,143 | 11,864 | 12,083 | 12,113 | 11,856 | ||||||||||||||
Equity awards - unit equivalents | 279 | 322 | 265 | 252 | 336 | ||||||||||||||
Weighted average shares used in determining FFO attributable to Class A unitholders plus assumed conversions per diluted share (OP Basis) | 203,480 | 203,354 | 203,344 | 203,391 | 203,305 |
CONSOLIDATED NET INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS (unaudited) | ||||||||||||||||
(Amounts in thousands) | ||||||||||||||||
For the Three Months Ended | ||||||||||||||||
June 30, | March 31, 2019 | |||||||||||||||
2019 | 2018 | Variance | ||||||||||||||
Property rentals(1) | $ | 368,165 | $ | 431,377 | $ | (63,212 | ) | $ | 428,380 | |||||||
Tenant expense reimbursements(1) | 51,084 | 58,312 | (7,228 | ) | 66,112 | |||||||||||
Amortization of acquired below-market leases, net | 4,643 | 10,526 | (5,883 | ) | 6,525 | |||||||||||
Straight-lining of rents | (2,593 | ) | 2,692 | (5,285 | ) | (1,140 | ) | |||||||||
Total rental revenues | 421,299 | 502,907 | (81,608 | ) | 499,877 | |||||||||||
Fee and other income: | ||||||||||||||||
BMS cleaning fees | 32,570 | 30,867 | 1,703 | 29,785 | ||||||||||||
Management and leasing fees | 4,500 | 2,707 | 1,793 | 2,237 | ||||||||||||
Other income | 4,734 | 5,337 | (603 | ) | 2,769 | |||||||||||
Total revenues | 463,103 | 541,818 | (78,715 | ) | 534,668 | |||||||||||
Operating expenses | (220,752 | ) | (235,981 | ) | 15,229 | (246,895 | ) | |||||||||
Depreciation and amortization | (113,035 | ) | (111,846 | ) | (1,189 | ) | (116,709 | ) | ||||||||
General and administrative | (38,872 | ) | (34,427 | ) | (4,445 | ) | (58,020 | ) | ||||||||
Expense from deferred compensation plan liability | (1,315 | ) | (2,077 | ) | 762 | (5,433 | ) | |||||||||
Transaction related costs, impairment losses and other | (101,590 | ) | (1,017 | ) | (100,573 | ) | (149 | ) | ||||||||
Total expenses | (475,564 | ) | (385,348 | ) | (90,216 | ) | (427,206 | ) | ||||||||
Income from partially owned entities(2) | 22,873 | 8,757 | 14,116 | 7,320 | ||||||||||||
Loss from real estate fund investments | (15,803 | ) | (28,976 | ) | 13,173 | (167 | ) | |||||||||
Interest and other investment income, net | 7,840 | 30,892 | (23,052 | ) | 5,045 | |||||||||||
Income from deferred compensation plan assets | 1,315 | 2,077 | (762 | ) | 5,433 | |||||||||||
Interest and debt expense | (63,029 | ) | (87,657 | ) | 24,628 | (102,463 | ) | |||||||||
Net gain on transfer to Fifth Avenue and Times Square JV | 2,571,099 | — | 2,571,099 | — | ||||||||||||
Net gains on disposition of wholly owned and partially owned assets | 111,713 | 23,559 | 88,154 | 220,294 | ||||||||||||
Income before income taxes | 2,623,547 | 105,122 | 2,518,425 | 242,924 | ||||||||||||
Income tax expense | (26,914 | ) | (467 | ) | (26,447 | ) | (29,743 | ) | ||||||||
Income from continuing operations | 2,596,633 | 104,655 | 2,491,978 | 213,181 | ||||||||||||
Income (loss) from discontinued operations | 60 | 683 | (623 | ) | (137 | ) | ||||||||||
Net income | 2,596,693 | 105,338 | 2,491,355 | 213,044 | ||||||||||||
Less net (income) loss attributable to noncontrolling interests in: | ||||||||||||||||
Consolidated subsidiaries | (21,451 | ) | 26,175 | (47,626 | ) | (6,820 | ) | |||||||||
Operating Partnership | (162,515 | ) | (7,445 | ) | (155,070 | ) | (12,202 | ) | ||||||||
Net income attributable to Vornado | 2,412,727 | 124,068 | 2,288,659 | 194,022 | ||||||||||||
Preferred share dividends | (12,532 | ) | (12,534 | ) | 2 | (12,534 | ) | |||||||||
Net income attributable to common shareholders | $ | 2,400,195 | $ | 111,534 | $ | 2,288,661 | $ | 181,488 | ||||||||
Capitalized expenditures: | ||||||||||||||||
Leasing payroll(3) | $ | — | $ | 1,358 | $ | (1,358 | ) | $ | — | |||||||
Development payroll | 5,923 | 3,249 | 2,674 | 4,590 | ||||||||||||
Interest and debt expense | 19,812 | 16,754 | 3,058 | 23,325 |
(1) | "Property rentals" and "tenant expense reimbursements" represent non-GAAP financial measures which are reconciled above to "rental revenues" the most directly comparable financial measure calculated in accordance with GAAP. |
(2) | Beginning April 18, 2019, "income from partially owned entities" includes the previously consolidated properties contributed to Fifth Avenue and Times Square JV. |
(3) | Beginning January 1, 2019, we no longer capitalize internal leasing costs in accordance with Accounting Standard Update 2016-02, Leases. |
CONSOLIDATED NET INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS (unaudited) | |||||||||||||
(Amounts in thousands) | |||||||||||||
For the Six Months Ended June 30, | |||||||||||||
2019 | 2018 | Variance | |||||||||||
Property rentals(1) | $ | 796,545 | $ | 853,476 | $ | (56,931 | ) | ||||||
Tenant expense reimbursements(1) | 117,196 | 118,622 | (1,426 | ) | |||||||||
Amortization of acquired below-market leases, net | 11,168 | 21,107 | (9,939 | ) | |||||||||
Straight-lining of rents | (3,733 | ) | 10,122 | (13,855 | ) | ||||||||
Total rental revenues | 921,176 | 1,003,327 | (82,151 | ) | |||||||||
Fee and other income: | |||||||||||||
BMS cleaning fees | 62,355 | 59,222 | 3,133 | ||||||||||
Management and leasing fees | 6,737 | 5,471 | 1,266 | ||||||||||
Other income | 7,503 | 10,235 | (2,732 | ) | |||||||||
Total revenues | 997,771 | 1,078,255 | (80,484 | ) | |||||||||
Operating expenses | (467,647 | ) | (473,583 | ) | 5,936 | ||||||||
Depreciation and amortization | (229,744 | ) | (220,532 | ) | (9,212 | ) | |||||||
General and administrative | (96,892 | ) | (76,960 | ) | (19,932 | ) | |||||||
Expense from deferred compensation plan liability | (6,748 | ) | (1,673 | ) | (5,075 | ) | |||||||
Transaction related costs, impairment losses and other | (101,739 | ) | (14,173 | ) | (87,566 | ) | |||||||
Total expenses | (902,770 | ) | (786,921 | ) | (115,849 | ) | |||||||
Income (loss) from partially owned entities(2) | 30,193 | (1,147 | ) | 31,340 | |||||||||
Loss from real estate fund investments | (15,970 | ) | (37,783 | ) | 21,813 | ||||||||
Interest and other investment income, net | 12,885 | 6,508 | 6,377 | ||||||||||
Income from deferred compensation plan assets | 6,748 | 1,673 | 5,075 | ||||||||||
Interest and debt expense | (165,492 | ) | (175,823 | ) | 10,331 | ||||||||
Net gain on transfer to Fifth Avenue and Times Square JV | 2,571,099 | — | 2,571,099 | ||||||||||
Net gains on disposition of wholly owned and partially owned assets | 332,007 | 23,559 | 308,448 | ||||||||||
Income before income taxes | 2,866,471 | 108,321 | 2,758,150 | ||||||||||
Income tax expense | (56,657 | ) | (3,021 | ) | (53,636 | ) | |||||||
Income from continuing operations | 2,809,814 | 105,300 | 2,704,514 | ||||||||||
(Loss) income from discontinued operations | (77 | ) | 320 | (397 | ) | ||||||||
Net income | 2,809,737 | 105,620 | 2,704,117 | ||||||||||
Less net (income) loss attributable to noncontrolling interests in: | |||||||||||||
Consolidated subsidiaries | (28,271 | ) | 34,449 | (62,720 | ) | ||||||||
Operating Partnership | (174,717 | ) | (6,321 | ) | (168,396 | ) | |||||||
Net income attributable to Vornado | 2,606,749 | 133,748 | 2,473,001 | ||||||||||
Preferred share dividends | (25,066 | ) | (25,569 | ) | 503 | ||||||||
Preferred share issuance costs | — | (14,486 | ) | 14,486 | |||||||||
Net income attributable to common shareholders | $ | 2,581,683 | $ | 93,693 | $ | 2,487,990 | |||||||
Capitalized expenditures: | |||||||||||||
Leasing payroll(3) | $ | — | $ | 2,706 | $ | (2,706 | ) | ||||||
Development payroll | 10,515 | 4,958 | 5,557 | ||||||||||
Interest and debt expense | 43,137 | 31,481 | 11,656 |
(1) | "Property rentals" and "tenant expense reimbursements" represent non-GAAP financial measures which are reconciled above to "rental revenues" the most directly comparable financial measure calculated in accordance with GAAP. |
(2) | Beginning April 18, 2019, "income (loss) from partially owned entities" includes the previously consolidated properties contributed to Fifth Avenue and Times Square JV. |
(3) | Beginning January 1, 2019, we no longer capitalize internal leasing costs in accordance with Accounting Standard Update 2016-02, Leases. |
NET INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS BY SEGMENT (unaudited) |
(Amounts in thousands) |
For the Three Months Ended June 30, 2019 | |||||||||||
Total | New York | Other | |||||||||
Property rentals(1) | $ | 368,165 | $ | 290,970 | $ | 77,195 | |||||
Tenant expense reimbursements(1) | 51,084 | 42,282 | 8,802 | ||||||||
Amortization of acquired below-market leases, net | 4,643 | 4,436 | 207 | ||||||||
Straight-lining of rents | (2,593 | ) | (1,901 | ) | (692 | ) | |||||
Total rental revenues | 421,299 | 335,787 | 85,512 | ||||||||
Fee and other income: | |||||||||||
BMS cleaning fees | 32,570 | 34,944 | (2,374 | ) | |||||||
Management and leasing fees | 4,500 | 4,472 | 28 | ||||||||
Other income | 4,734 | 1,178 | 3,556 | ||||||||
Total revenues | 463,103 | 376,381 | 86,722 | ||||||||
Operating expenses | (220,752 | ) | (187,819 | ) | (32,933 | ) | |||||
Depreciation and amortization | (113,035 | ) | (89,479 | ) | (23,556 | ) | |||||
General and administrative | (38,872 | ) | (16,672 | ) | (22,200 | ) | |||||
Expense from deferred compensation plan liability | (1,315 | ) | — | (1,315 | ) | ||||||
Transaction related costs, impairment losses and other | (101,590 | ) | (101,360 | ) | (230 | ) | |||||
Total expenses | (475,564 | ) | (395,330 | ) | (80,234 | ) | |||||
Income from partially owned entities | 22,873 | 21,121 | 1,752 | ||||||||
Loss from real estate fund investments | (15,803 | ) | — | (15,803 | ) | ||||||
Interest and other investment income, net | 7,840 | 1,229 | 6,611 | ||||||||
Income from deferred compensation plan assets | 1,315 | — | 1,315 | ||||||||
Interest and debt expense | (63,029 | ) | (43,748 | ) | (19,281 | ) | |||||
Net gain on transfer to Fifth Avenue and Times Square JV | 2,571,099 | 2,571,099 | — | ||||||||
Net gains on disposition of wholly owned and partially owned assets | 111,713 | — | 111,713 | ||||||||
Income before income taxes | 2,623,547 | 2,530,752 | 92,795 | ||||||||
Income tax expense | (26,914 | ) | (1,267 | ) | (25,647 | ) | |||||
Income from continuing operations | 2,596,633 | 2,529,485 | 67,148 | ||||||||
Income from discontinued operations | 60 | — | 60 | ||||||||
Net income | 2,596,693 | 2,529,485 | 67,208 | ||||||||
Less net income attributable to noncontrolling interests in consolidated subsidiaries | (21,451 | ) | (14,317 | ) | (7,134 | ) | |||||
Net income attributable to Vornado Realty L.P. | 2,575,242 | $ | 2,515,168 | $ | 60,074 | ||||||
Less net income attributable to noncontrolling interests in the Operating Partnership | (162,474 | ) | |||||||||
Preferred unit distributions | (12,573 | ) | |||||||||
Net income attributable to common shareholders | $ | 2,400,195 | |||||||||
For the three months ended June 30, 2018: | |||||||||||
Net income attributable to Vornado Realty L.P. | $ | 131,513 | $ | 126,609 | $ | 4,904 | |||||
Net income attributable to common shareholders | $ | 111,534 |
(1) | "Property rentals" and "tenant expense reimbursements" represent non-GAAP financial measures which are reconciled above to "rental revenues" the most directly comparable financial measure calculated in accordance with GAAP. |
NET INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS BY SEGMENT (unaudited) |
(Amounts in thousands) |
For the Six Months Ended June 30, 2019 | ||||||||||||
Total | New York | Other | ||||||||||
Property rentals(1) | $ | 796,545 | $ | 638,065 | $ | 158,480 | ||||||
Tenant expense reimbursements(1) | 117,196 | 96,529 | 20,667 | |||||||||
Amortization of acquired below-market leases, net | 11,168 | 10,750 | 418 | |||||||||
Straight-lining of rents | (3,733 | ) | (1,920 | ) | (1,813 | ) | ||||||
Total rental revenues | 921,176 | 743,424 | 177,752 | |||||||||
Fee and other income: | ||||||||||||
BMS cleaning fees | 62,355 | 66,701 | (4,346 | ) | ||||||||
Management and leasing fees | 6,737 | 6,723 | 14 | |||||||||
Other income | 7,503 | 2,818 | 4,685 | |||||||||
Total revenues | 997,771 | 819,666 | 178,105 | |||||||||
Operating expenses | (467,647 | ) | (385,914 | ) | (81,733 | ) | ||||||
Depreciation and amortization | (229,744 | ) | (184,290 | ) | (45,454 | ) | ||||||
General and administrative | (96,892 | ) | (33,236 | ) | (63,656 | ) | ||||||
Expense from deferred compensation plan liability | (6,748 | ) | — | (6,748 | ) | |||||||
Transaction related costs, impairment losses and other | (101,739 | ) | (101,360 | ) | (379 | ) | ||||||
Total expenses | (902,770 | ) | (704,800 | ) | (197,970 | ) | ||||||
Income from partially owned entities | 30,193 | 26,526 | 3,667 | |||||||||
Loss from real estate fund investments | (15,970 | ) | — | (15,970 | ) | |||||||
Interest and other investment income, net | 12,885 | 2,796 | 10,089 | |||||||||
Income from deferred compensation plan assets | 6,748 | — | 6,748 | |||||||||
Interest and debt expense | (165,492 | ) | (98,475 | ) | (67,017 | ) | ||||||
Net gain on transfer to Fifth Avenue and Times Square JV | 2,571,099 | 2,571,099 | — | |||||||||
Net gains on disposition of wholly owned and partially owned assets | 332,007 | — | 332,007 | |||||||||
Income before income taxes | 2,866,471 | 2,616,812 | 249,659 | |||||||||
Income tax expense | (56,657 | ) | (2,712 | ) | (53,945 | ) | ||||||
Income from continuing operations | 2,809,814 | 2,614,100 | 195,714 | |||||||||
Loss from discontinued operations | (77 | ) | — | (77 | ) | |||||||
Net income | 2,809,737 | 2,614,100 | 195,637 | |||||||||
Less net income attributable to noncontrolling interests in consolidated subsidiaries | (28,271 | ) | (16,142 | ) | (12,129 | ) | ||||||
Net income attributable to Vornado Realty L.P. | 2,781,466 | $ | 2,597,958 | $ | 183,508 | |||||||
Less net income attributable to noncontrolling interests in the Operating Partnership | (174,635 | ) | ||||||||||
Preferred unit distributions | (25,148 | ) | ||||||||||
Net income attributable to common shareholders | $ | 2,581,683 | ||||||||||
For the six months ended June 30, 2018: | ||||||||||||
Net income (loss) attributable to Vornado Realty L.P. | $ | 140,069 | $ | 200,547 | $ | (60,478 | ) | |||||
Net income attributable to common shareholders | $ | 93,693 |
(1) | "Property rentals" and "tenant expense reimbursements" represent non-GAAP financial measures which are reconciled above to "rental revenues" the most directly comparable financial measure calculated in accordance with GAAP. |
NET OPERATING INCOME AT SHARE BY SEGMENT (unaudited) | |||||||||||||||||||
(Amounts in thousands) |
For the Three Months Ended June 30, 2019 | |||||||||||
Total | New York(1) | Other | |||||||||
Total revenues | $ | 463,103 | $ | 376,381 | $ | 86,722 | |||||
Operating expenses | 220,752 | 187,819 | 32,933 | ||||||||
NOI - consolidated | 242,351 | 188,562 | 53,789 | ||||||||
Deduct: NOI attributable to noncontrolling interests in consolidated subsidiaries | (16,416 | ) | (10,030 | ) | (6,386 | ) | |||||
Add: NOI from partially owned entities | 82,974 | 79,170 | 3,804 | ||||||||
NOI at share | 308,909 | 257,702 | 51,207 | ||||||||
Non-cash adjustments for straight-line rents, amortization of acquired below-market leases, net, and other | 9,748 | 8,437 | 1,311 | ||||||||
NOI at share - cash basis | $ | 318,657 | $ | 266,139 | $ | 52,518 |
(1) | Reflects the transfer of 45.4% of common equity in the properties contributed to the Fifth Avenue and Times Square JV on April 18, 2019. |
For the Three Months Ended June 30, 2018 | |||||||||||
Total | New York | Other | |||||||||
Total revenues | $ | 541,818 | $ | 458,552 | $ | 83,266 | |||||
Operating expenses | 235,981 | 200,903 | 35,078 | ||||||||
NOI - consolidated | 305,837 | 257,649 | 48,188 | ||||||||
Deduct: NOI attributable to noncontrolling interests in consolidated subsidiaries | (17,160 | ) | (11,560 | ) | (5,600 | ) | |||||
Add: NOI from partially owned entities | 65,752 | 49,778 | 15,974 | ||||||||
NOI at share | 354,429 | 295,867 | 58,562 | ||||||||
Non-cash adjustments for straight-line rents, amortization of acquired below-market leases, net, and other | (12,481 | ) | (12,713 | ) | 232 | ||||||
NOI at share - cash basis | $ | 341,948 | $ | 283,154 | $ | 58,794 |
For the Three Months Ended March 31, 2019 | |||||||||||
Total | New York | Other | |||||||||
Total revenues | $ | 534,668 | $ | 443,285 | $ | 91,383 | |||||
Operating expenses | 246,895 | 198,095 | 48,800 | ||||||||
NOI - consolidated | 287,773 | 245,190 | 42,583 | ||||||||
Deduct: NOI attributable to noncontrolling interests in consolidated subsidiaries | (17,403 | ) | (11,407 | ) | (5,996 | ) | |||||
Add: NOI from partially owned entities | 67,402 | 49,575 | 17,827 | ||||||||
NOI at share | 337,772 | 283,358 | 54,414 | ||||||||
Non-cash adjustments for straight-line rents, amortization of acquired below-market leases, net, and other | (5,181 | ) | (6,618 | ) | 1,437 | ||||||
NOI at share - cash basis | $ | 332,591 | $ | 276,740 | $ | 55,851 |
NET OPERATING INCOME AT SHARE BY SEGMENT (unaudited) | |||||||||||||||||||
(Amounts in thousands) |
For the Six Months Ended June 30, 2019 | |||||||||||
Total | New York(1) | Other | |||||||||
Total revenues | $ | 997,771 | $ | 819,666 | $ | 178,105 | |||||
Operating expenses | 467,647 | 385,914 | 81,733 | ||||||||
NOI - consolidated | 530,124 | 433,752 | 96,372 | ||||||||
Deduct: NOI attributable to noncontrolling interests in consolidated subsidiaries | (33,819 | ) | (21,437 | ) | (12,382 | ) | |||||
Add: NOI from partially owned entities | 150,376 | 128,745 | 21,631 | ||||||||
NOI at share | 646,681 | 541,060 | 105,621 | ||||||||
Non-cash adjustments for straight-line rents, amortization of acquired below-market leases, net, and other | 4,567 | 1,819 | 2,748 | ||||||||
NOI at share - cash basis | $ | 651,248 | $ | 542,879 | $ | 108,369 |
(1) | Reflects the transfer of 45.4% of common equity in the properties contributed to the Fifth Avenue and Times Square JV on April 18, 2019. |
For the Six Months Ended June 30, 2018 | |||||||||||
Total | New York | Other | |||||||||
Total revenues | $ | 1,078,255 | $ | 907,036 | $ | 171,219 | |||||
Operating expenses | 473,583 | 398,819 | 74,764 | ||||||||
NOI - consolidated | 604,672 | 508,217 | 96,455 | ||||||||
Deduct: NOI attributable to noncontrolling interests in consolidated subsidiaries | (34,472 | ) | (23,305 | ) | (11,167 | ) | |||||
Add: NOI from partially owned entities | 133,265 | 99,551 | 33,714 | ||||||||
NOI at share | 703,465 | 584,463 | 119,002 | ||||||||
Non-cash adjustments for straight-line rents, amortization of acquired below-market leases, net, and other | (30,429 | ) | (30,036 | ) | (393 | ) | |||||
NOI at share - cash basis | $ | 673,036 | $ | 554,427 | $ | 118,609 |
NET OPERATING INCOME AT SHARE BY SUBSEGMENT (unaudited) | |||||||||||||||||||
(Amounts in thousands) |
For the Three Months Ended | For the Six Months Ended June 30, | ||||||||||||||||||
June 30, | March 31, 2019 | ||||||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||||||
NOI at share: | |||||||||||||||||||
New York: | |||||||||||||||||||
Office(1) | $ | 179,592 | $ | 184,867 | $ | 183,540 | $ | 363,132 | $ | 372,023 | |||||||||
Retail(1) | 57,063 | 87,109 | 88,267 | 145,330 | 175,018 | ||||||||||||||
Residential | 5,908 | 6,338 | 6,045 | 11,953 | 12,479 | ||||||||||||||
Alexander's Inc ("Alexander's") | 11,108 | 11,909 | 11,322 | 22,430 | 23,484 | ||||||||||||||
Hotel Pennsylvania | 4,031 | 5,644 | (5,816 | ) | (1,785 | ) | 1,459 | ||||||||||||
Total New York | 257,702 | 295,867 | 283,358 | 541,060 | 584,463 | ||||||||||||||
Other: | |||||||||||||||||||
theMART | 30,974 | 27,816 | 23,523 | 54,497 | 54,691 | ||||||||||||||
555 California Street | 15,358 | 13,660 | 14,501 | 29,859 | 27,171 | ||||||||||||||
Other investments | 4,875 | 17,086 | 16,390 | 21,265 | 37,140 | ||||||||||||||
Total Other | 51,207 | 58,562 | 54,414 | 105,621 | 119,002 | ||||||||||||||
NOI at share | $ | 308,909 | $ | 354,429 | $ | 337,772 | $ | 646,681 | $ | 703,465 |
(1) | Reflects the transfer of 45.4% of common equity in the properties contributed to the Fifth Avenue and Times Square JV on April 18, 2019. |
NOI at share - cash basis: | |||||||||||||||||||
New York: | |||||||||||||||||||
Office(1) | $ | 178,806 | $ | 180,710 | $ | 184,370 | $ | 363,176 | $ | 358,909 | |||||||||
Retail(1) | 66,726 | 79,139 | 80,936 | 147,662 | 158,728 | ||||||||||||||
Residential | 5,303 | 5,463 | 5,771 | 11,074 | 11,062 | ||||||||||||||
Alexander's | 11,322 | 12,098 | 11,527 | 22,849 | 24,137 | ||||||||||||||
Hotel Pennsylvania | 3,982 | 5,744 | (5,864 | ) | (1,882 | ) | 1,591 | ||||||||||||
Total New York | 266,139 | 283,154 | 276,740 | 542,879 | 554,427 | ||||||||||||||
Other: | |||||||||||||||||||
theMART | 31,984 | 27,999 | 24,912 | 56,896 | 55,078 | ||||||||||||||
555 California Street | 15,595 | 13,808 | 14,745 | 30,340 | 26,634 | ||||||||||||||
Other investments | 4,939 | 16,987 | 16,194 | 21,133 | 36,897 | ||||||||||||||
Total Other | 52,518 | 58,794 | 55,851 | 108,369 | 118,609 | ||||||||||||||
NOI at share - cash basis | $ | 318,657 | $ | 341,948 | $ | 332,591 | $ | 651,248 | $ | 673,036 |
(1) | Reflects the transfer of 45.4% of common equity in the properties contributed to the Fifth Avenue and Times Square JV on April 18, 2019. |
SAME STORE NOI AT SHARE AND NOI AT SHARE - CASH BASIS (NON-GAAP) (unaudited) |
Total | New York(2) | theMART | 555 California Street | |||||||||
Same store NOI at share % increase (decrease)(1): | ||||||||||||
Three months ended June 30, 2019 compared to June 30, 2018 | 1.2 | % | (0.7 | )% | 12.1 | % | 13.0 | % | ||||
Six months ended June 30, 2019 compared to June 30, 2018 | 0.5 | % | (0.4 | )% | 4.7 | % | 10.2 | % | ||||
Three months ended June 30, 2019 compared to March 31, 2019 | 7.2 | % | 4.1 | % | 42.3 | % | 6.4 | % | ||||
Same store NOI at share - cash basis % increase(1): | ||||||||||||
Three months ended June 30, 2019 compared to June 30, 2018 | 4.3 | % | 2.5 | % | 15.5 | % | 12.9 | % | ||||
Six months ended June 30, 2019 compared to June 30, 2018 | 3.7 | % | 2.6 | % | 8.9 | % | 13.9 | % | ||||
Three months ended June 30, 2019 compared to March 31, 2019 | 8.3 | % | 5.5 | % | 38.1 | % | 5.8 | % |
(1) | See pages viii through xiii in the Appendix for same store NOI at share and same store NOI at share - cash basis reconciliations. | |||
Increase | ||||
(2) | Excluding Hotel Pennsylvania, same store NOI at share % increase: | |||
Three months ended June 30, 2019 compared to June 30, 2018 | 0.0 | % | ||
Six months ended June 30, 2019 compared to June 30, 2018 | 0.3 | % | ||
Three months ended June 30, 2019 compared to March 31, 2019 | 0.0 | % | ||
Excluding Hotel Pennsylvania, same store NOI at share - cash basis % increase: | ||||
Three months ended June 30, 2019 compared to June 30, 2018 | 3.3 | % | ||
Six months ended June 30, 2019 compared to June 30, 2018 | 3.3 | % | ||
Three months ended June 30, 2019 compared to March 31, 2019 | 1.2 | % | ||
NOI AT SHARE BY REGION (unaudited) |
For the Three Months Ended June 30, | For the Six Months Ended June 30, | ||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||
Region: | |||||||||||
New York City metropolitan area | 85 | % | 88 | % | 86 | % | 88 | % | |||
Chicago, IL | 10 | % | 8 | % | 9 | % | 8 | % | |||
San Francisco, CA | 5 | % | 4 | % | 5 | % | 4 | % | |||
100 | % | 100 | % | 100 | % | 100 | % |
CONSOLIDATED BALANCE SHEETS (unaudited) | |||||||||||
(Amounts in thousands) | |||||||||||
As of | Increase (Decrease) | ||||||||||
June 30, 2019 | December 31, 2018 | ||||||||||
ASSETS | |||||||||||
Real estate, at cost: | |||||||||||
Land | $ | 2,609,869 | $ | 3,306,280 | $ | (696,411 | ) | ||||
Buildings and improvements | 7,813,812 | 10,110,992 | (2,297,180 | ) | |||||||
Development costs and construction in progress | 1,835,054 | 2,266,491 | (431,437 | ) | |||||||
Moynihan Train Hall development expenditures | 665,226 | 445,693 | 219,533 | ||||||||
Leasehold improvements and equipment | 118,428 | 108,427 | 10,001 | ||||||||
Total | 13,042,389 | 16,237,883 | (3,195,494 | ) | |||||||
Less accumulated depreciation and amortization | (2,894,202 | ) | (3,180,175 | ) | 285,973 | ||||||
Real estate, net | 10,148,187 | 13,057,708 | (2,909,521 | ) | |||||||
Right-of-use assets | 380,214 | — | 380,214 | ||||||||
Cash and cash equivalents | 922,604 | 570,916 | 351,688 | ||||||||
Restricted cash | 154,306 | 145,989 | 8,317 | ||||||||
Marketable securities | 41,081 | 152,198 | (111,117 | ) | |||||||
Tenant and other receivables | 85,153 | 73,322 | 11,831 | ||||||||
Investments in partially owned entities | 4,025,534 | 858,113 | 3,167,421 | ||||||||
Real estate fund investments | 306,596 | 318,758 | (12,162 | ) | |||||||
220 Central Park South condominium units ready for sale | 328,786 | 99,627 | 229,159 | ||||||||
Receivable arising from the straight-lining of rents | 749,198 | 935,131 | (185,933 | ) | |||||||
Deferred leasing costs, net | 357,511 | 400,313 | (42,802 | ) | |||||||
Identified intangible assets, net | 32,478 | 136,781 | (104,303 | ) | |||||||
Other assets | 382,209 | 431,938 | (49,729 | ) | |||||||
Total Assets | $ | 17,913,857 | $ | 17,180,794 | $ | 733,063 | |||||
LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND EQUITY | |||||||||||
Liabilities: | |||||||||||
Mortgages payable, net | $ | 6,256,808 | $ | 8,167,798 | $ | (1,910,990 | ) | ||||
Senior unsecured notes, net | 445,465 | 844,002 | (398,537 | ) | |||||||
Unsecured term loan, net | 745,331 | 744,821 | 510 | ||||||||
Unsecured revolving credit facilities | 80,000 | 80,000 | — | ||||||||
Lease liabilities | 483,011 | — | 483,011 | ||||||||
Moynihan Train Hall obligation | 665,226 | 445,693 | 219,533 | ||||||||
Accounts payable and accrued expenses | 392,581 | 430,976 | (38,395 | ) | |||||||
Deferred revenue | 66,835 | 167,730 | (100,895 | ) | |||||||
Deferred compensation plan | 99,879 | 96,523 | 3,356 | ||||||||
Other liabilities | 320,515 | 311,806 | 8,709 | ||||||||
Total liabilities | 9,555,651 | 11,289,349 | (1,733,698 | ) | |||||||
Redeemable noncontrolling interests | 862,062 | 783,562 | 78,500 | ||||||||
Shareholders' equity | 6,860,554 | 4,465,231 | 2,395,323 | ||||||||
Noncontrolling interests in consolidated subsidiaries | 635,590 | 642,652 | (7,062 | ) | |||||||
Total liabilities, redeemable noncontrolling interests and equity | $ | 17,913,857 | $ | 17,180,794 | $ | 733,063 |
LEASING ACTIVITY (unaudited) |
(Square feet in thousands) |
New York | 555 California Street | |||||||||||||||
Office | Retail | theMART | ||||||||||||||
Three Months Ended June 30, 2019 | ||||||||||||||||
Total square feet leased | 221 | 70 | 30 | 30 | ||||||||||||
Our share of square feet leased: | 155 | 67 | 30 | 21 | ||||||||||||
Initial rent(1) | $ | 83.54 | $ | 162.44 | $ | 63.83 | $ | 86.00 | ||||||||
Weighted average lease term (years) | 7.2 | 19.6 | 4.1 | 5.1 | ||||||||||||
Second generation relet space: | ||||||||||||||||
Square feet | 80 | 64 | 30 | 21 | ||||||||||||
GAAP basis: | ||||||||||||||||
Straight-line rent(2) | $ | 73.75 | $ | 173.54 | $ | 65.58 | $ | 87.22 | ||||||||
Prior straight-line rent | $ | 69.67 | $ | 120.22 | $ | 57.09 | $ | 65.98 | ||||||||
Percentage increase | 5.9 | % | 44.4 | % | 14.9 | % | 32.2 | % | ||||||||
Cash basis (non-GAAP): | ||||||||||||||||
Initial rent(1) | $ | 76.02 | $ | 152.10 | $ | 63.83 | $ | 86.00 | ||||||||
Prior escalated rent | $ | 73.57 | $ | 128.16 | $ | 60.22 | $ | 76.23 | ||||||||
Percentage increase | 3.3 | % | 18.7 | % | 6.0 | % | 12.8 | % | ||||||||
Tenant improvements and leasing commissions: | ||||||||||||||||
Per square foot | $ | 70.76 | $ | 73.23 | $ | 6.23 | $ | 31.28 | ||||||||
Per square foot per annum | $ | 9.83 | $ | 3.74 | $ | 1.52 | $ | 6.13 | ||||||||
Percentage of initial rent | 11.8 | % | 2.3 | % | 2.4 | % | 7.1 | % |
LEASING ACTIVITY (unaudited) |
(Square feet in thousands) |
New York | 555 California Street | |||||||||||||||
Office | Retail | theMART | ||||||||||||||
Six Months Ended June 30, 2019 | ||||||||||||||||
Total square feet leased | 617 | 118 | 189 | 92 | ||||||||||||
Our share of square feet leased: | 505 | 110 | 189 | 64 | ||||||||||||
Initial rent(1) | $ | 78.25 | $ | 143.18 | $ | 49.41 | $ | 82.69 | ||||||||
Weighted average lease term (years) | 8.4 | 13.2 | 6.5 | 5.1 | ||||||||||||
Second generation relet space: | ||||||||||||||||
Square feet | 391 | 102 | 187 | 64 | ||||||||||||
GAAP basis: | ||||||||||||||||
Straight-line rent(2) | $ | 73.37 | $ | 152.41 | $ | 48.62 | $ | 85.29 | ||||||||
Prior straight-line rent | $ | 72.04 | $ | 118.08 | $ | 43.39 | $ | 55.25 | ||||||||
Percentage increase | 1.8 | % | 29.1 | % | 12.1 | % | 54.4 | % | ||||||||
Cash basis (non-GAAP): | ||||||||||||||||
Initial rent(1) | $ | 74.76 | $ | 138.37 | $ | 49.36 | $ | 82.69 | ||||||||
Prior escalated rent | $ | 73.22 | $ | 127.39 | $ | 46.48 | $ | 64.66 | ||||||||
Percentage increase | 2.1 | % | 8.6 | % | 6.2 | % | 27.9 | % | ||||||||
Tenant improvements and leasing commissions: | ||||||||||||||||
Per square foot | $ | 82.04 | $ | 52.40 | $ | 30.58 | $ | 43.22 | ||||||||
Per square foot per annum | $ | 9.77 | $ | 3.97 | $ | 4.70 | $ | 8.47 | ||||||||
Percentage of initial rent | 12.5 | % | 2.8 | % | 9.5 | % | 10.2 | % |
(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. |
LEASE EXPIRATIONS (unaudited) NEW YORK SEGMENT | |||||||||||||||
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 | 17,000 | $ | 1,001,000 | $ | 58.88 | 0.1 | % | |||||||
Third Quarter 2019 | 30,000 | 1,896,000 | 63.20 | 0.2 | % | ||||||||||
Fourth Quarter 2019 | 102,000 | 7,500,000 | 73.53 | 0.7 | % | ||||||||||
Total 2019 | 132,000 | 9,396,000 | 71.18 | 0.9 | % | ||||||||||
First Quarter 2020 | 531,000 | 33,646,000 | 63.36 | 2.9 | % | ||||||||||
Second Quarter 2020 | 258,000 | 18,639,000 | 72.24 | 1.6 | % | ||||||||||
Remaining 2020 | 335,000 | 26,174,000 | 78.13 | 2.3 | % | ||||||||||
2021 | 1,211,000 | 96,225,000 | 79.46 | 8.3 | % | ||||||||||
2022 | 698,000 | 46,704,000 | 66.91 | 4.0 | % | ||||||||||
2023 | 1,960,000 | 163,354,000 | 83.34 | 14.2 | % | ||||||||||
2024 | 1,412,000 | 115,525,000 | 81.82 | 10.0 | % | ||||||||||
2025 | 818,000 | 62,012,000 | 75.81 | 5.4 | % | ||||||||||
2026 | 1,184,000 | 90,094,000 | 76.09 | 7.8 | % | ||||||||||
2027 | 1,073,000 | 78,101,000 | 72.79 | 6.8 | % | ||||||||||
2028 | 967,000 | 68,529,000 | 70.87 | 5.9 | % | ||||||||||
2029 | 685,000 | 54,978,000 | 80.26 | 4.8 | % | ||||||||||
Thereafter | 4,332,000 | 288,940,000 | 66.70 | 25.0 | % | ||||||||||
Retail: | Month to Month | 58,000 | $ | 8,410,000 | $ | 145.00 | 2.5 | % | |||||||
Third Quarter 2019 | 13,000 | 5,709,000 | 439.15 | 1.8 | % | ||||||||||
Fourth Quarter 2019 | 45,000 | 9,086,000 | 201.91 | 2.7 | % | ||||||||||
Total 2019 | 58,000 | 14,795,000 | 255.09 | 4.5 | % | ||||||||||
First Quarter 2020 | 17,000 | 4,613,000 | 271.35 | 1.4 | % | ||||||||||
Second Quarter 2020 | 56,000 | 9,373,000 | 167.38 | 2.8 | % | ||||||||||
Remaining 2020 | 17,000 | 2,897,000 | 170.41 | 0.9 | % | ||||||||||
2021 | 88,000 | 10,617,000 | 120.65 | 3.2 | % | ||||||||||
2022 | 29,000 | 7,073,000 | 243.90 | 2.1 | % | ||||||||||
2023 | 91,000 | 32,411,000 | 356.16 | 9.7 | % | ||||||||||
2024 | 230,000 | 52,220,000 | 227.04 | 15.7 | % | ||||||||||
2025 | 41,000 | 14,044,000 | 342.54 | 4.2 | % | ||||||||||
2026 | 78,000 | 27,406,000 | 351.36 | 8.2 | % | ||||||||||
2027 | 24,000 | 17,993,000 | 749.71 | 5.4 | % | ||||||||||
2028 | 36,000 | 13,909,000 | 386.36 | 4.2 | % | ||||||||||
2029 | 203,000 | 38,759,000 | 190.93 | 11.6 | % | ||||||||||
Thereafter | 583,000 | 78,576,000 | 134.78 | 23.6 | % |
(1) | Excludes storage, vacancy and other. |
LEASE EXPIRATIONS (unaudited) theMART | |||||||||||||||
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 | — | $ | — | $ | — | 0.0 | % | |||||||
Third Quarter 2019 | 18,000 | 917,000 | 50.94 | 0.5 | % | ||||||||||
Fourth Quarter 2019 | 43,000 | 2,401,000 | 55.84 | 1.4 | % | ||||||||||
Total 2019 | 61,000 | 3,318,000 | 54.39 | 1.9 | % | ||||||||||
First Quarter 2020 | 139,000 | 6,369,000 | 45.82 | 3.8 | % | ||||||||||
Second Quarter 2020 | 31,000 | 1,532,000 | 49.42 | 0.9 | % | ||||||||||
Remaining 2020 | 124,000 | 6,364,000 | 51.32 | 3.8 | % | ||||||||||
2021 | 322,000 | 15,732,000 | 48.86 | 9.4 | % | ||||||||||
2022 | 606,000 | 29,329,000 | 48.40 | 17.6 | % | ||||||||||
2023 | 302,000 | 15,522,000 | 51.40 | 9.3 | % | ||||||||||
2024 | 307,000 | 15,072,000 | 49.09 | 9.1 | % | ||||||||||
2025 | 310,000 | 16,394,000 | 52.88 | 9.8 | % | ||||||||||
2026 | 265,000 | 12,920,000 | 48.75 | 7.8 | % | ||||||||||
2027 | 108,000 | 5,480,000 | 50.74 | 3.3 | % | ||||||||||
2028 | 642,000 | 28,281,000 | 44.05 | 17.0 | % | ||||||||||
2029 | 61,000 | 2,829,000 | 46.38 | 1.7 | % | ||||||||||
Thereafter | 168,000 | 7,737,000 | 46.05 | 4.6 | % |
LEASE EXPIRATIONS (unaudited) 555 California Street | |||||||||||||||
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 | — | $ | — | $ | — | 0.0 | % | |||||||
Third Quarter 2019 | 3,000 | 257,000 | 85.67 | 0.3 | % | ||||||||||
Fourth Quarter 2019 | — | — | — | 0.0 | % | ||||||||||
Total 2019 | 3,000 | 257,000 | 85.67 | 0.3 | % | ||||||||||
First Quarter 2020 | — | — | — | 0.0 | % | ||||||||||
Second Quarter 2020 | 9,000 | 897,000 | 99.67 | 0.9 | % | ||||||||||
Remaining 2020 | 51,000 | 3,221,000 | 63.16 | 3.3 | % | ||||||||||
2021 | 76,000 | 5,565,000 | 73.22 | 5.7 | % | ||||||||||
2022 | 36,000 | 2,923,000 | 81.19 | 3.0 | % | ||||||||||
2023 | 133,000 | 9,801,000 | 73.69 | 10.0 | % | ||||||||||
2024 | 61,000 | 5,583,000 | 91.52 | 5.7 | % | ||||||||||
2025 | 405,000 | 30,464,000 | 75.22 | 31.2 | % | ||||||||||
2026 | 140,000 | 10,876,000 | 77.69 | 11.1 | % | ||||||||||
2027 | 69,000 | 5,993,000 | 86.86 | 6.1 | % | ||||||||||
2028 | 20,000 | 1,491,000 | 74.55 | 1.5 | % | ||||||||||
2029 | 74,000 | 6,799,000 | 91.88 | 7.0 | % | ||||||||||
Thereafter | 165,000 | 13,829,000 | 83.81 | 14.2 | % |
TRAILING TWELVE MONTH PRO-FORMA CASH NET OPERATING INCOME AT SHARE (unaudited) | |||||||||||||||||||
(Amounts in thousands) | |||||||||||||||||||
For the Trailing Twelve Months Ended June 30, 2019 | For the Trailing Twelve Months Ended March 31, 2019 | ||||||||||||||||||
Adjustment for Transfer of 45.4% Interest in Fifth Avenue and Times Square JV(1) | |||||||||||||||||||
NOI at Share - Cash Basis | Adjustments | Pro Forma NOI at Share - Cash Basis | Pro Forma NOI at Share - Cash Basis | ||||||||||||||||
Office: | |||||||||||||||||||
New York | $ | 730,375 | $ | (19,067 | ) | $ | (38,632 | ) | (2) | $ | 672,676 | $ | 705,862 | ||||||
theMART | 95,888 | — | 8,997 | (3) | 104,885 | 104,021 | |||||||||||||
555 California Street | 57,194 | — | — | 57,194 | 55,407 | ||||||||||||||
Total Office | 883,457 | (19,067 | ) | (29,635 | ) | 834,755 | 865,290 | ||||||||||||
New York - Retail | 313,153 | (68,148 | ) | (10,738 | ) | (4) | 234,267 | 325,566 | |||||||||||
New York - Residential | 22,088 | — | — | 22,088 | 22,248 | ||||||||||||||
$ | 1,218,698 | $ | (87,215 | ) | $ | (40,373 | ) | $ | 1,091,110 | $ | 1,213,104 |
(1) | Adjusts July 1, 2018 through April 18, 2019 to reflect new ownership interests in the properties contributed to Fifth Avenue and Times Square JV. |
(2) | Adjustment to deduct $27,052 of BMS NOI for the trailing twelve months ended June 30, 2019 and $11,580 of 330 Madison Avenue NOI (sold in July 2019). |
(3) | Adjustment to offset the accrual in Q4 2018 for the annual real estate tax increase which is billed to tenants throughout 2019. |
(4) | Adjustment for Topshop at 608 Fifth Avenue. |
CAPITAL STRUCTURE (unaudited) | ||||||||||||
(Amounts in thousands, except per share and unit amounts) | ||||||||||||
As of June 30, 2019 | ||||||||||||
Debt (contractual balances) (non-GAAP): | ||||||||||||
Consolidated debt (1): | ||||||||||||
Mortgages payable | $ | 6,291,645 | ||||||||||
Senior unsecured notes | 450,000 | |||||||||||
$750 Million unsecured term loan | 750,000 | |||||||||||
$2.75 Billion unsecured revolving credit facilities | 80,000 | |||||||||||
7,571,645 | ||||||||||||
Pro rata share of debt of non-consolidated entities(2)(3) | 2,928,286 | |||||||||||
Less: Noncontrolling interests' share of consolidated debt (primarily 1290 Avenue of the Americas and 555 California Street) | (480,640 | ) | ||||||||||
10,019,291 | (A) | |||||||||||
Shares/Units | Liquidation Preference | |||||||||||
Perpetual Preferred: | ||||||||||||
5.00% preferred unit (D-16) (1 unit @ $1,000,000 per unit) | 1,000 | |||||||||||
3.25% preferred units (D-17) (141,400 units @ $25 per unit) | 3,535 | |||||||||||
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 | |||||||||
924,035 | (B) | |||||||||||
Converted Shares | June 30, 2019 Common Share Price | |||||||||||
Equity: | ||||||||||||
Common shares | 190,813 | $ | 64.10 | 12,231,113 | ||||||||
Class A units | 12,208 | 64.10 | 782,533 | |||||||||
Convertible share equivalents: | ||||||||||||
Equity awards - unit equivalents | 1,169 | 64.10 | 74,933 | |||||||||
D-13 preferred units | 728 | 64.10 | 46,665 | |||||||||
G1-G4 units | 59 | 64.10 | 3,782 | |||||||||
Series A preferred shares | 34 | 64.10 | 2,179 | |||||||||
13,141,205 | (C) | |||||||||||
Total Market Capitalization (A+B+C) | $ | 24,084,531 |
(1) | See reconciliation of consolidated debt, net (GAAP) to contractual debt (non-GAAP) on page xiv in the Appendix. |
(2) | As a result of the bankruptcy plan of reorganization for Toys "R" Us, Inc. ("Toys") being declared effective and our stock in Toys being canceled, we no longer hold an investment in Toys. Accordingly, no Toys debt is included in our pro rata share of debt of non-consolidated entities. |
(3) | Our pro rata share of debt of non-consolidated entities is net of our $63,409 share of Alexander's participation in its Rego Park II shopping center mortgage loan which is considered partially extinguished as the participation interest is a reacquisition of debt. |
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): | |||||||||||||||
Second Quarter 2019 | First Quarter 2019 | Fourth Quarter 2018 | Third Quarter 2018 | ||||||||||||
High price | $ | 70.45 | $ | 70.54 | $ | 73.06 | $ | 77.59 | |||||||
Low price | $ | 62.87 | $ | 59.95 | $ | 59.48 | $ | 69.50 | |||||||
Closing price - end of quarter | $ | 64.10 | $ | 67.44 | $ | 62.03 | $ | 73.00 | |||||||
Annualized dividend per share | $ | 2.64 | $ | 2.64 | $ | 2.52 | $ | 2.52 | |||||||
Annualized dividend yield - on closing price | 4.1 | % | 3.9 | % | 4.1 | % | 3.5 | % | |||||||
Outstanding shares, Class A units and convertible preferred units as converted (in thousands) | 205,011 | 204,336 | 203,930 | 203,604 | |||||||||||
Closing market value of outstanding shares, Class A units and convertible preferred units as converted | $ | 13.1 Billion | $ | 13.8 Billion | $ | 12.6 Billion | $ | 14.9 Billion |
DEBT ANALYSIS (unaudited) | |||||||||||||||||
(Amounts in thousands) | |||||||||||||||||
As of June 30, 2019 | |||||||||||||||||
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) | $ | 7,571,645 | 3.68% | $ | 1,763,182 | 4.06% | $ | 5,808,463 | 3.57% | ||||||||
Pro rata share of debt of non-consolidated entities(2)(3) | 2,928,286 | 4.03% | 1,475,815 | 4.04% | 1,452,471 | 4.02% | |||||||||||
Total | 10,499,931 | 3.78% | 3,238,997 | 4.05% | 7,260,934 | 3.66% | |||||||||||
Less: Noncontrolling interests' share of consolidated debt (primarily 1290 Avenue of the Americas and 555 California Street) | (480,640 | ) | (29,301 | ) | (451,339 | ) | |||||||||||
Company's pro rata share of total debt | $ | 10,019,291 | 3.77% | $ | 3,209,696 | 4.04% | $ | 6,809,595 | 3.64% |
Debt Covenant Ratios:(4) | Senior Unsecured Notes due 2025 | Unsecured Revolving Credit Facilities and Unsecured Term Loan | |||||
Required | Actual | Required | Actual | ||||
Total outstanding debt/total assets(5) | Less than 65% | 41% | Less than 60% | 33% | |||
Secured debt/total assets | Less than 50% | 31% | Less than 50% | 27% | |||
Interest coverage ratio (annualized combined EBITDA to annualized interest expense) | Greater than 1.50 | 2.49 | N/A | ||||
Fixed charge coverage | N/A | Greater than 1.40 | 2.54 | ||||
Unencumbered assets/unsecured debt | Greater than 150% | 478% | N/A | ||||
Unsecured debt/cap value of unencumbered assets | N/A | Less than 60% | 11% | ||||
Unencumbered coverage ratio | N/A | Greater than 1.50 | 7.83 |
Unencumbered EBITDA (non-GAAP):(5) | Q2 2019 | |||
Annualized | ||||
New York | $ | 287,516 | ||
Other | 24,432 | |||
Total | $ | 311,948 |
(1) | See reconciliation of consolidated debt, net (GAAP) to contractual debt (non-GAAP) on page xiv in the Appendix. |
(2) | As a result of the bankruptcy plan of reorganization for Toys "R" Us, Inc. ("Toys") being declared effective and our stock in Toys being canceled, we no longer hold an investment in Toys. Accordingly, no Toys debt is included in our pro rata share of debt of non-consolidated entities. |
(3) | Our pro rata share of debt of non-consolidated entities is net of our $63,409 share of Alexander's participation in its Rego Park II shopping center mortgage loan which is considered partially extinguished as the participation interest is a reacquisition of debt. |
(4) | 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. |
(5) | Total assets include EBITDA (as defined) capped at 7.0% under the senior unsecured notes due 2025 and 6.0% under the unsecured revolving credit facilities and unsecured term loan. |
DEBT MATURITIES (CONTRACTUAL BALANCES) (NON-GAAP) (unaudited) | ||||||||||||||||||||||||||||||||||
(Amounts in thousands) | ||||||||||||||||||||||||||||||||||
Property | Maturity Date (1) | Spread over LIBOR | Interest Rate | 2019 | 2020 | 2021 | 2022 | 2023 | Thereafter | Total | ||||||||||||||||||||||||
220 Central Park South | 09/20 | L+200 | 4.40% | $ | — | $ | 48,883 | (2) | $ | — | $ | — | $ | — | $ | — | $ | 48,883 | ||||||||||||||||
PENN11 | 12/20 | 3.95% | — | 450,000 | — | — | — | — | 450,000 | |||||||||||||||||||||||||
Borgata Land | 02/21 | 5.14% | — | — | 53,999 | — | — | — | 53,999 | |||||||||||||||||||||||||
770 Broadway | 03/21 | 2.56% | (3) | — | — | 700,000 | — | — | — | 700,000 | ||||||||||||||||||||||||
909 Third Avenue | 05/21 | 3.91% | — | — | 350,000 | — | — | — | 350,000 | |||||||||||||||||||||||||
606 Broadway | 05/21 | L+300 | 5.41% | — | — | 58,603 | — | — | — | 58,603 | ||||||||||||||||||||||||
555 California Street | 09/21 | 5.10% | — | — | 554,464 | — | — | — | 554,464 | |||||||||||||||||||||||||
theMART | 09/21 | 2.70% | — | — | 675,000 | — | — | — | 675,000 | |||||||||||||||||||||||||
PENN2 | 12/21 | L+165 | 4.09% | — | — | 575,000 | — | — | — | 575,000 | ||||||||||||||||||||||||
1290 Avenue of the Americas | 11/22 | 3.34% | — | — | — | 950,000 | — | — | 950,000 | |||||||||||||||||||||||||
$1.25 Billion unsecured revolving credit facility | 01/23 | L+100 | 3.40% | — | — | — | — | 80,000 | — | 80,000 | ||||||||||||||||||||||||
Unsecured Term Loan | 02/24 | 3.87% | (4) | — | — | — | — | — | 750,000 | 750,000 | ||||||||||||||||||||||||
435 Seventh Avenue - retail | 02/24 | L+130 | 3.73% | — | — | — | — | — | 95,696 | 95,696 | ||||||||||||||||||||||||
$1.5 Billion unsecured revolving credit facility | 03/24 | L+90 | —% | — | — | — | — | — | — | — | ||||||||||||||||||||||||
150 West 34th Street | 05/24 | L+188 | 4.30% | — | — | — | — | — | 205,000 | 205,000 | ||||||||||||||||||||||||
33-00 Northern Boulevard | 01/25 | 4.14% | (5) | — | — | — | — | — | 100,000 | 100,000 | ||||||||||||||||||||||||
Senior unsecured notes due 2025 | 01/25 | 3.50% | — | — | — | — | — | 450,000 | 450,000 | |||||||||||||||||||||||||
4 Union Square South - retail | 08/25 | L+140 | 3.84% | — | — | — | — | — | 120,000 | 120,000 | ||||||||||||||||||||||||
888 Seventh Avenue | 12/25 | 3.25% | (6) | — | — | — | — | — | 375,000 | 375,000 | ||||||||||||||||||||||||
100 West 33rd Street - office and retail | 04/26 | L+155 | 3.98% | — | — | — | — | — | 580,000 | 580,000 | ||||||||||||||||||||||||
350 Park Avenue | 01/27 | 3.92% | — | — | — | — | — | 400,000 | 400,000 | |||||||||||||||||||||||||
$ | — | $ | 498,883 | $ | 2,967,066 | $ | 950,000 | $ | 80,000 | $ | 3,075,696 | $ | 7,571,645 | |||||||||||||||||||||
Weighted average rate | — | % | 4.00 | % | 3.62 | % | 3.34 | % | 3.40 | % | 3.80 | % | 3.68 | % | ||||||||||||||||||||
Fixed rate debt | $ | — | $ | 450,000 | $ | 2,333,463 | $ | 950,000 | $ | — | $ | 2,075,000 | $ | 5,808,463 | ||||||||||||||||||||
Fixed weighted average rate expiring | — | % | 3.95 | % | 3.47 | % | 3.34 | % | — | % | 3.70 | % | 3.57 | % | ||||||||||||||||||||
Floating rate debt | $ | — | $ | 48,883 | $ | 633,603 | $ | — | $ | 80,000 | $ | 1,000,696 | $ | 1,763,182 | ||||||||||||||||||||
Floating weighted average rate expiring | — | % | 4.40 | % | 4.21 | % | — | % | 3.40 | % | 4.00 | % | 4.06 | % |
(1) | Represents the extended maturity for certain loans in which we have the unilateral right to extend. |
(2) | Repaid on July 16, 2019. |
(3) | 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% (4.17% as of June 30, 2019). |
(4) | Pursuant to an existing swap agreement, the loan bears interest at 3.87% through October 2023. The rate was swapped from LIBOR plus 1.00% (3.40% as of June 30, 2019). |
(5) | Pursuant to an existing swap agreement, the loan bears interest at 4.14% through January 2025. The rate was swapped from LIBOR plus 1.80% (4.22% as of June 30, 2019). |
(6) | Pursuant to an existing swap agreement, the loan bears interest at 3.25% through December 2020. The rate was swapped from LIBOR plus 1.70% (4.11% as of June 30, 2019). |
UNCONSOLIDATED JOINT VENTURES (unaudited) | ||||||||||||||||||||||
(Amounts in thousands) | ||||||||||||||||||||||
Joint Venture Name | Asset Category | Percentage Ownership at June 30, 2019 | Company's Carrying Amount | Company's Pro rata Share of Debt(1) | 100% of Joint Venture Debt(1) | Maturity Date(2) | Spread over LIBOR | Interest Rate | ||||||||||||||
Fifth Avenue and Times Square JV | Retail/Office | 51.5% | $ | 3,306,389 | $ | 461,461 | $ | 950,000 | Various | Various | Various | |||||||||||
Alexander's(3) | Office/Retail | 32.4% | 103,005 | 315,847 | 974,836 | Various | Various | Various | ||||||||||||||
Partially owned office buildings/land: | ||||||||||||||||||||||
One Park Avenue | Office/Retail | 55.0% | 136,351 | 165,000 | 300,000 | 03/21 | L+175 | 4.17% | ||||||||||||||
650 Madison Avenue | Office/Retail | 20.1% | 104,947 | 161,024 | 800,000 | 10/20 | N/A | 4.39% | ||||||||||||||
280 Park Avenue | Office/Retail | 50.0% | 104,140 | 600,000 | 1,200,000 | 09/24 | L+173 | 4.14% | ||||||||||||||
512 West 22nd Street | Office | 55.0% | 60,078 | 58,533 | 106,425 | 06/24 | L+200 | 4.40% | ||||||||||||||
West 57th Street properties | Office/Retail/Land | 50.0% | 43,434 | 10,000 | 20,000 | 12/22 | L+160 | 4.04% | ||||||||||||||
825 Seventh Avenue | Office/Retail | 50.0% | 9,826 | 10,250 | 20,500 | 09/19 | L+140 | 3.81% | ||||||||||||||
61 Ninth Avenue | Office/Retail | 45.1% | 6,389 | 75,543 | 167,500 | 01/26 | L+135 | 3.77% | ||||||||||||||
Other | Office/Retail | Various | 4,099 | 17,465 | 50,150 | Various | Various | Various | ||||||||||||||
Other equity method investments: | ||||||||||||||||||||||
Independence Plaza | Residential/Retail | 50.1% | 66,113 | 338,175 | 675,000 | 07/25 | N/A | 4.25% | ||||||||||||||
Rosslyn Plaza | Office/Residential | 43.7% to 50.4% | 31,662 | 19,842 | 39,360 | 06/22 | L+195 | 4.35% | ||||||||||||||
Other | Various | Various | 49,101 | 99,271 | 643,499 | Various | Various | Various | ||||||||||||||
$ | 4,025,534 | $ | 2,332,411 | $ | 5,947,270 | |||||||||||||||||
330 Madison Avenue(4) | Office/Retail | 25.0% | $ | (60,097 | ) | (5) | $ | 125,000 | $ | 500,000 | 08/24 | N/A | 3.43% | |||||||||
7 West 34th Street | Office/Retail | 53.0% | (53,143 | ) | (5) | 159,000 | 300,000 | 06/26 | N/A | 3.65% | ||||||||||||
85 Tenth Avenue | Office/Retail | 49.9% | (5,098 | ) | (5) | 311,875 | 625,000 | 12/26 | N/A | 4.55% | ||||||||||||
$ | (118,338 | ) | $ | 595,875 | $ | 1,425,000 |
(1) | Represents the contractual debt obligations. All amounts are non-recourse to us except the $300,000 mortgage loan on 7 West 34th Street and $500,000 mortgage loan on 640 Fifth Avenue, included in Fifth Avenue and Times Square JV. |
(2) | Represents the extended maturity for certain loans in which we have the unilateral right to extend. |
(3) | Our pro rata share of debt of non-consolidated entities is net of our $63,409 share of Alexander's participation in its Rego Park II shopping center mortgage loan which is considered partially extinguished as the participation interest is a reacquisition of debt. |
(4) | Sold on July 11, 2019. |
(5) | Our negative basis results from distributions in excess of our investment. |
UNCONSOLIDATED JOINT VENTURES (unaudited) | |||||||||||||||||
(Amounts in thousands) | |||||||||||||||||
Percentage Ownership at June 30, 2019 | Our Share of Net Income (Loss) for the Three Months Ended June 30, | Our Share of NOI (non-GAAP) for the Three Months Ended June 30, | |||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||||
Joint Venture Name | |||||||||||||||||
New York: | |||||||||||||||||
Fifth Avenue and Times Square JV(1): | |||||||||||||||||
Equity in net income | 51.5% | $ | 11,217 | $ | — | $ | 31,186 | $ | — | ||||||||
Return on preferred equity, net of our share of the expense | 8,586 | — | — | — | |||||||||||||
19,803 | — | 31,186 | — | ||||||||||||||
280 Park Avenue | 50.0% | (4,647 | ) | (2) | (1,485 | ) | 7,542 | (2) | 9,838 | ||||||||
Alexander's | 32.4% | 3,597 | 6,146 | 11,108 | 11,909 | ||||||||||||
One Park Avenue | 55.0% | 1,490 | 1,740 | 5,203 | 4,368 | ||||||||||||
7 West 34th Street | 53.0% | 771 | 859 | 3,281 | 3,266 | ||||||||||||
650 Madison Avenue | 20.1% | (747 | ) | (561 | ) | 2,952 | 3,026 | ||||||||||
85 Tenth Avenue | 49.9% | 742 | (190 | ) | 4,821 | 4,830 | |||||||||||
330 Madison Avenue(3) | 25.0% | 707 | 715 | 2,762 | 2,795 | ||||||||||||
Independence Plaza | 50.1% | (342 | ) | 1,024 | 6,818 | 6,967 | |||||||||||
West 57th Street properties | 50.0% | (92 | ) | (86 | ) | 252 | 229 | ||||||||||
825 Seventh Avenue | 50.0% | 21 | 670 | 12 | 839 | ||||||||||||
Other, net | Various | (182 | ) | (601 | ) | 3,233 | 1,711 | ||||||||||
21,121 | 8,231 | 79,170 | 49,778 | ||||||||||||||
Other: | |||||||||||||||||
Alexander's corporate fee income | 32.4% | 1,122 | 1,021 | 540 | 547 | ||||||||||||
UE(4) | N/A | — | 1,112 | — | 2,893 | ||||||||||||
Rosslyn Plaza | 43.7% to 50.4% | 268 | 286 | 1,449 | 1,301 | ||||||||||||
PREIT(5) | N/A | — | (1,068 | ) | — | 4,509 | |||||||||||
666 Fifth Avenue Office Condominium(6) | N/A | — | (1,269 | ) | — | 5,135 | |||||||||||
Other, net | Various | 362 | 444 | 1,815 | 1,589 | ||||||||||||
1,752 | 526 | 3,804 | 15,974 | ||||||||||||||
Total | $ | 22,873 | $ | 8,757 | $ | 82,974 | $ | 65,752 |
(1) | Completed on April 18, 2019. |
(2) | Includes a $1,079 reduction in income from the non-cash write-off of straight-line rent receivable (The Four Seasons Restaurant). |
(3) | Sold on July 11, 2019. |
(4) | Sold on March 4, 2019. |
(5) | On March 12, 2019, we converted all of our PREIT operating partnership units into common shares and began accounting for our investment as a marketable security. |
(6) | Sold on August 3, 2018. |
UNCONSOLIDATED JOINT VENTURES (unaudited) | |||||||||||||||||
(Amounts in thousands) | |||||||||||||||||
Percentage Ownership at June 30, 2019 | Our Share of Net Income (Loss) for the Six Months Ended June 30, | Our Share of NOI (non-GAAP) for the Six Months Ended June 30, | |||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||||
Joint Venture Name | |||||||||||||||||
New York: | |||||||||||||||||
Fifth Avenue and Times Square JV(1): | |||||||||||||||||
Equity in net income | 51.5% | $ | 11,217 | $ | — | $ | 31,186 | $ | — | ||||||||
Return on preferred equity, net of our share of the expense | 8,586 | — | — | — | |||||||||||||
19,803 | — | 31,186 | — | ||||||||||||||
Alexander's | 32.4% | 9,314 | 2,937 | (2) | 22,430 | 23,484 | |||||||||||
280 Park Avenue | 50.0% | (6,485 | ) | (3) | (1,749 | ) | 17,090 | (3) | 19,328 | ||||||||
One Park Avenue | 55.0% | 3,147 | (3,158 | ) | (4) | 10,496 | 10,302 | ||||||||||
650 Madison Avenue | 20.1% | (1,901 | ) | (1,624 | ) | 5,410 | 5,531 | ||||||||||
7 West 34th Street | 53.0% | 1,798 | 1,888 | 6,807 | 6,703 | ||||||||||||
330 Madison Avenue(5) | 25.0% | 1,288 | 1,429 | 5,401 | 5,572 | ||||||||||||
85 Tenth Avenue | 49.9% | 563 | (743 | ) | 9,968 | 9,434 | |||||||||||
Independence Plaza | 50.1% | (228 | ) | 2,508 | 13,717 | 14,016 | |||||||||||
West 57th Street properties | 50.0% | (192 | ) | (167 | ) | 510 | 427 | ||||||||||
825 Seventh Avenue | 50.0% | 47 | 1,362 | 12 | 1,685 | ||||||||||||
Other, net | Various | (628 | ) | (1,390 | ) | 5,718 | 3,069 | ||||||||||
26,526 | 1,293 | 128,745 | 99,551 | ||||||||||||||
Other: | |||||||||||||||||
666 Fifth Avenue Office Condominium (6) | N/A | — | (4,761 | ) | — | 10,408 | |||||||||||
Alexander's corporate fee income | 32.4% | 2,179 | 2,229 | 1,016 | 1,755 | ||||||||||||
UE(7) | N/A | 773 | 471 | 4,902 | 5,765 | ||||||||||||
Rosslyn Plaza | 43.7% to 50.4% | 402 | 2 | 2,785 | 2,334 | ||||||||||||
PREIT(8) | N/A | 51 | (1,497 | ) | 9,824 | 10,230 | |||||||||||
Other, net | Various | 262 | 1,116 | 3,104 | 3,222 | ||||||||||||
3,667 | (2,440 | ) | 21,631 | 33,714 | |||||||||||||
Total | $ | 30,193 | $ | (1,147 | ) | $ | 150,376 | $ | 133,265 |
(1) | Completed on April 18, 2019. |
(2) | Includes our $7,708 share of Alexander's disputed transfer tax related to the November 2012 sale of Kings Plaza Regional Shopping Center based on the precedent established by the New York City Tax Appeals Tribunal (the "Tax Tribunal") decision regarding One Park Avenue. See note below. |
(3) | Includes a $1,079 reduction in income from the non-cash write-off of straight-line rent receivable (The Four Seasons Restaurant). |
(4) | Includes our $4,978 share of disputed transfer tax recorded in the first quarter of 2018 related to the March 2011 acquisition of One Park Avenue as a result of the Tax Tribunal's decision. We appealed the Tax Tribunal's decision to the New York State Supreme Court, Appellate Division, First Department ("Appellate Division"). Our appeal was heard on April 2, 2019, and on April 25, 2019 the Appellate Division entered a unanimous decision and order that confirmed the decision of the Tax Tribunal and dismissed our appeal. On June 20, 2019, we filed a motion to reargue the Appellate Division's decision with the appellate court. |
(5) | Sold on July 11, 2019. |
(6) | Sold on August 3, 2018. |
(7) | Sold on March 4, 2019. |
(8) | On March 12, 2019, we converted all of our PREIT operating partnership units into common shares and began accounting for our investment as a marketable security. |
PENN DISTRICT | ||||||||||||||||||
ACTIVE DEVELOPMENT/REDEVELOPMENT SUMMARY - AS OF JUNE 30, 2019 (unaudited) | ||||||||||||||||||
(Amounts in thousands, except square feet) | ||||||||||||||||||
Property Rentable Sq. Ft. | Projected Incremental Cash Yield | |||||||||||||||||
Active Penn District Projects | Segment | Incremental Budget(1) | Amount Expended | Remainder to be Expended | Stabilization Year | |||||||||||||
Farley (95% interest) | New York | 845,000 | 1,030,000 | (2) | 438,581 | 591,419 | 2022 | 7.4% | ||||||||||
PENN2 - as expanded | New York | 1,795,000 | 750,000 | 26,713 | 723,287 | 2024 | 8.4% | |||||||||||
PENN1(3) | New York | 2,543,000 | 325,000 | 48,832 | 276,168 | N/A | 13.5%(3)(4) | |||||||||||
Districtwide Improvements | New York | N/A | 100,000 | — | 100,000 | N/A | N/A | |||||||||||
Total Active Penn District Projects | 2,205,000 | 514,126 | 1,690,874 | (5) | 8.3% |
(1) | Excluding debt and equity carry. |
(2) | Net of anticipated historic tax credits. |
(3) | Property is ground leased through 2098, as fully extended. Fair market value resets occur in 2023, 2048 and 2073. The 13.5% projected return is before the ground rent reset in 2023, which may be material. |
(4) | Achieved as existing leases roll; average remaining lease term 5.4 years. |
(5) | Expected to be funded from our balance sheet, principally from 220 CPS net sales proceeds. |
OTHER DEVELOPMENT/REDEVELOPMENT SUMMARY - AS OF JUNE 30, 2019 (unaudited) | ||||||||||||||||
(Amounts in thousands, except square feet) | ||||||||||||||||
Property Rentable Sq. Ft. | Stabilization Year | |||||||||||||||
Other Active Projects | Segment | Incremental Budget | Amount Expended | Remainder to be Expended | ||||||||||||
220 CPS - residential condominiums | Other | 397,000 | 1,400,000 | 1,293,632 | (1) | 106,368 | N/A | |||||||||
345 Montgomery Street (555 California Street) (70% interest) | Other | 78,000 | 32,000 | 21,865 | 10,135 | 2020 | ||||||||||
825 Seventh Avenue - office (50% interest) | New York | 165,000 | 15,000 | 9,526 | 5,474 | 2021 | ||||||||||
Total Other Projects | 1,447,000 | 1,325,023 | 121,977 | |||||||||||||
Future Opportunities | Segment | Property Zoning Sq. Ft. | ||||||||||||||
Penn District - multiple opportunities - office/residential/retail | New York | |||||||||||||||
Hotel Pennsylvania | New York | 2,052,000 | ||||||||||||||
260 Eleventh Avenue - office(2) | New York | 280,000 | ||||||||||||||
Undeveloped Land | ||||||||||||||||
29, 31, 33 West 57th Street (50% interest) | New York | 150,000 | ||||||||||||||
484, 486 Eighth Avenue and 265, 267 West 34th Street | New York | 125,000 | ||||||||||||||
527 West Kinzie, Chicago | Other | 330,000 | ||||||||||||||
Rego Park III (32.4% interest) | New York | |||||||||||||||
Total undeveloped land | 605,000 |
(1) | Excludes land and acquisition costs of 515,426. |
(2) | The building is subject to a ground lease which expires in 2114. |
CAPITAL EXPENDITURES, TENANT IMPROVEMENTS AND LEASING COMMISSIONS (unaudited) | |||||||||||||
CONSOLIDATED | |||||||||||||
(Amounts in thousands) | |||||||||||||
Six Months Ended June 30, 2019 | Year Ended December 31, | ||||||||||||
Amounts paid for capital expenditures: | 2018 | 2017 | |||||||||||
Expenditures to maintain assets | $ | 53,457 | $ | 92,386 | $ | 111,629 | |||||||
Tenant improvements | 36,080 | 100,191 | 128,287 | ||||||||||
Leasing commissions | 13,009 | 33,254 | 36,447 | ||||||||||
Recurring tenant improvements, leasing commissions and other capital expenditures | 102,546 | 225,831 | 276,363 | ||||||||||
Non-recurring capital expenditures | 21,505 | 43,135 | 35,149 | ||||||||||
Total capital expenditures and leasing commissions | $ | 124,051 | $ | 268,966 | $ | 311,512 | |||||||
Six Months Ended June 30, 2019 | Year Ended December 31, | ||||||||||||
2018 | 2017 | ||||||||||||
Amounts paid for development and redevelopment expenditures: | |||||||||||||
Farley Office and Retail Building | $ | 106,980 | $ | 295,827 | $ | 265,791 | |||||||
220 Central Park South | 102,926 | 18,995 | — | ||||||||||
PENN1 | 24,584 | 15,959 | 15,997 | ||||||||||
345 Montgomery Street | 9,736 | 8,856 | 1,462 | ||||||||||
606 Broadway | 7,464 | 18,187 | 5,950 | ||||||||||
1535 Broadway | 1,031 | 8,645 | 1,982 | ||||||||||
Other | 36,811 | 51,717 | 64,670 | (1) | |||||||||
$ | 289,532 | $ | 418,186 | $ | 355,852 |
(1) | Primarily relates to our former Washington, DC segment which was spun-off on July 17, 2017. |
CAPITAL EXPENDITURES, TENANT IMPROVEMENTS AND LEASING COMMISSIONS (unaudited) | ||||||||||||
NEW YORK SEGMENT | ||||||||||||
(Amounts in thousands) | ||||||||||||
Six Months Ended June 30, 2019 | Year Ended December 31, | |||||||||||
Amounts paid for capital expenditures: | 2018 | 2017 | ||||||||||
Expenditures to maintain assets | $ | 46,850 | $ | 70,954 | $ | 79,567 | ||||||
Tenant improvements | 31,068 | 76,187 | 83,639 | |||||||||
Leasing commissions | 12,289 | 29,435 | 26,114 | |||||||||
Recurring tenant improvements, leasing commissions and other capital expenditures | 90,207 | 176,576 | 189,320 | |||||||||
Non-recurring capital expenditures | 19,780 | 31,381 | 27,762 | |||||||||
Total capital expenditures and leasing commissions | $ | 109,987 | $ | 207,957 | $ | 217,082 | ||||||
Six Months Ended June 30, 2019 | Year Ended December 31, | |||||||||||
2018 | 2017 | |||||||||||
Amounts paid for development and redevelopment expenditures: | ||||||||||||
Farley Office and Retail Building | $ | 106,980 | $ | 18,995 | $ | — | ||||||
PENN1 | 24,584 | 15,959 | 15,997 | |||||||||
606 Broadway | 7,464 | 8,856 | 1,462 | |||||||||
1535 Broadway | 1,031 | 8,645 | 1,982 | |||||||||
Other | 32,387 | 36,660 | 23,933 | |||||||||
$ | 172,446 | $ | 89,115 | $ | 43,374 |
CAPITAL EXPENDITURES,TENANT IMPROVEMENTS AND LEASING COMMISSIONS (unaudited) | ||||||||||||
theMART | ||||||||||||
(Amounts in thousands) | ||||||||||||
Six Months Ended June 30, 2019 | Year Ended December 31, | |||||||||||
Amounts paid for capital expenditures: | 2018 | 2017 | ||||||||||
Expenditures to maintain assets | $ | 4,822 | $ | 13,282 | $ | 12,772 | ||||||
Tenant improvements | 1,806 | 15,106 | 8,730 | |||||||||
Leasing commissions | 376 | 459 | 1,701 | |||||||||
Recurring tenant improvements, leasing commissions and other capital expenditures | 7,004 | 28,847 | 23,203 | |||||||||
Non-recurring capital expenditures | 86 | 260 | — | |||||||||
Total capital expenditures and leasing commissions | $ | 7,090 | $ | 29,107 | $ | 23,203 | ||||||
Six Months Ended June 30, 2019 | Year Ended December 31, | |||||||||||
2018 | 2017 | |||||||||||
Amounts paid for development and redevelopment expenditures: | ||||||||||||
Common area enhancements | $ | 40 | $ | 51 | $ | 5,342 | ||||||
Other | 1,191 | 10,739 | 799 | |||||||||
$ | 1,231 | $ | 10,790 | $ | 6,141 |
CAPITAL EXPENDITURES, TENANT IMPROVEMENTS AND LEASING COMMISSIONS (unaudited) | ||||||||||||
555 CALIFORNIA STREET | ||||||||||||
(Amounts in thousands) | ||||||||||||
Six Months Ended June 30, 2019 | Year Ended December 31, | |||||||||||
Amounts paid for capital expenditures: | 2018 | 2017 | ||||||||||
Expenditures to maintain assets | $ | 1,785 | $ | 8,150 | $ | 9,689 | ||||||
Tenant improvements | 3,206 | 8,898 | 19,327 | |||||||||
Leasing commissions | 344 | 3,360 | 1,330 | |||||||||
Recurring tenant improvements, leasing commissions and other capital expenditures | 5,335 | 20,408 | 30,346 | |||||||||
Non-recurring capital expenditures | 1,639 | 11,494 | 7,159 | |||||||||
Total capital expenditures and leasing commissions | $ | 6,974 | $ | 31,902 | $ | 37,505 | ||||||
Six Months Ended June 30, 2019 | Year Ended December 31, | |||||||||||
2018 | 2017 | |||||||||||
Amounts paid for development and redevelopment expenditures: | ||||||||||||
345 Montgomery Street | $ | 9,736 | $ | 18,187 | $ | 5,950 | ||||||
Other | 3,193 | 445 | 6,465 | |||||||||
$ | 12,929 | $ | 18,632 | $ | 12,415 |
CAPITAL EXPENDITURES, TENANT IMPROVEMENTS AND LEASING COMMISSIONS (unaudited) | |||||||||||||
OTHER | |||||||||||||
(Amounts in thousands) | |||||||||||||
Six Months Ended June 30, 2019 | Year Ended December 31, | ||||||||||||
2018 | 2017 | ||||||||||||
Amounts paid for development and redevelopment expenditures: | |||||||||||||
220 CPS | $ | 102,926 | $ | 295,827 | $ | 265,791 | |||||||
Other | — | 3,822 | 28,131 | (1) | |||||||||
$ | 102,926 | $ | 299,649 | $ | 293,922 |
(1) | Primarily relates to our former Washington, DC segment which was spun-off on July 17, 2017. |
SQUARE FOOTAGE (unaudited) | ||||||||||||||||||||
(Square feet in thousands) | ||||||||||||||||||||
At Vornado's Share | ||||||||||||||||||||
At 100% | Under Development | In Service | ||||||||||||||||||
Total | Office | Retail | Showroom | Other | ||||||||||||||||
Segment: | ||||||||||||||||||||
New York: | ||||||||||||||||||||
Office | 21,497 | 17,821 | 1,337 | 16,301 | — | 183 | — | |||||||||||||
Retail | 2,791 | 2,294 | 190 | — | 2,104 | — | — | |||||||||||||
Residential - 1,683 units | 1,533 | 800 | 4 | — | — | — | 796 | |||||||||||||
Alexander's (32.4% interest), including 312 residential units | 2,449 | 793 | 63 | 288 | 356 | — | 86 | |||||||||||||
Hotel Pennsylvania | 1,400 | 1,400 | — | — | — | — | 1,400 | |||||||||||||
29,670 | 23,108 | 1,594 | 16,589 | 2,460 | 183 | 2,282 | ||||||||||||||
Other: | ||||||||||||||||||||
theMART | 3,693 | 3,684 | — | 2,045 | 106 | 1,533 | — | |||||||||||||
555 California Street (70% interest) | 1,819 | 1,273 | 55 | 1,185 | 33 | — | — | |||||||||||||
Other | 2,831 | 1,332 | 140 | 212 | 869 | — | 111 | |||||||||||||
8,343 | 6,289 | 195 | 3,442 | 1,008 | 1,533 | 111 | ||||||||||||||
Total square feet at June 30, 2019 | 38,013 | 29,397 | 1,789 | 20,031 | 3,468 | 1,716 | 2,393 | |||||||||||||
Total square feet at March 31, 2019 | 38,007 | 29,812 | 1,747 | 20,192 | 3,768 | 1,715 | 2,390 | |||||||||||||
Parking Garages (not included above): | Square Feet | Number of Garages | Number of Spaces | |||||||||||||||||
New York | 1,669 | 10 | 4,875 | |||||||||||||||||
theMART | 558 | 4 | 1,637 | |||||||||||||||||
555 California Street | 168 | 1 | 453 | |||||||||||||||||
Rosslyn Plaza | 411 | 4 | 1,094 | |||||||||||||||||
Total at June 30, 2019 | 2,806 | 19 | 8,059 |
TOP 30 TENANTS (unaudited) | |||||||
(Amounts in thousands, except square feet) |
Tenants | Square Footage At Share(1) | Annualized Revenues At Share (non-GAAP)(1) | % of Annualized Revenues At Share (non-GAAP)(2) | |||||||
Facebook | 757,653 | $ | 77,126 | 3.4 | % | |||||
IPG and affiliates | 967,552 | 65,232 | 2.9 | % | ||||||
Macy's | 646,434 | 38,404 | 1.7 | % | ||||||
Bloomberg L.P. | 303,147 | 35,898 | 1.6 | % | ||||||
Google/Motorola Mobility (guaranteed by Google) | 728,483 | 35,849 | 1.6 | % | ||||||
AXA Equitable Life Insurance | 336,646 | 33,250 | 1.5 | % | ||||||
Oath (Verizon) | 327,138 | 31,881 | 1.4 | % | ||||||
Ziff Brothers Investments, Inc. | 287,030 | 31,535 | 1.4 | % | ||||||
McGraw-Hill Companies, Inc. | 479,557 | 30,812 | 1.4 | % | ||||||
Swatch Group USA(3) | 14,950 | 29,051 | 1.3 | % | ||||||
Amazon (including its Whole Foods subsidiary) | 320,204 | 28,469 | 1.3 | % | ||||||
AMC Networks, Inc. | 404,920 | 28,207 | 1.3 | % | ||||||
The City of New York | 563,545 | 25,194 | 1.1 | % | ||||||
Neuberger Berman Group LLC | 288,325 | 23,290 | 1.0 | % | ||||||
Forever 21(3) | 112,468 | 22,998 | 1.0 | % | ||||||
Madison Square Garden | 342,822 | 22,940 | 1.0 | % | ||||||
Bank of America | 254,033 | 22,079 | 1.0 | % | ||||||
JCPenney | 426,370 | 21,244 | 0.9 | % | ||||||
New York University | 347,948 | 20,523 | 0.9 | % | ||||||
PwC | 241,196 | 17,731 | 0.8 | % | ||||||
Victoria's Secret (guaranteed by L Brands, Inc.)(3) | 33,164 | 17,399 | 0.8 | % | ||||||
U.S. Government | 578,711 | 14,303 | 0.6 | % | ||||||
Information Builders, Inc. | 210,978 | 13,360 | 0.6 | % | ||||||
Fast Retailing (Uniqlo)(3) | 47,181 | 12,815 | 0.6 | % | ||||||
New York & Company, Inc. | 207,269 | 12,220 | 0.5 | % | ||||||
Cushman & Wakefield | 127,314 | 12,028 | 0.5 | % | ||||||
Kmart Corporation | 223,741 | 11,459 | 0.5 | % | ||||||
Hollister(3) | 11,306 | 10,923 | 0.5 | % | ||||||
Foot Locker | 149,987 | 10,668 | 0.5 | % | ||||||
Forest Laboratories | 168,673 | 10,651 | 0.5 | % | ||||||
34.1 | % |
(1) | Includes leases not yet commenced. |
(2) | See reconciliation of our annualized revenue at share on page xiv in the Appendix. |
(3) | Tenant annualized revenues adjusted to reflect the transfer of the 45.4% interest in Fifth Avenue and Times Square JV. |
OCCUPANCY (unaudited) | |||||||||
New York | theMART | 555 California Street | |||||||
Occupancy rate at: | |||||||||
June 30, 2019 | 96.5 | % | 94.8 | % | 99.5 | % | |||
March 31, 2019 | 97.0 | % | 94.9 | % | 99.4 | % | |||
December 31, 2018 | 97.0 | % | 94.7 | % | 99.4 | % | |||
June 30, 2018 | 96.6 | % | 99.3 | % | 97.3 | % |
RESIDENTIAL STATISTICS in service (unaudited) | |||||||
Vornado's Ownership Interest | |||||||
Number of Units | Number of Units | Occupancy Rate | Average Monthly Rent Per Unit | ||||
New York: | |||||||
June 30, 2019 | 1,995 | 959 | 95.9% | $3,837 | |||
March 31, 2019 | 1,995 | 959 | 96.7% | $3,821 | |||
December 31, 2018 | 1,999 | 963 | 96.6% | $3,803 | |||
June 30, 2018 | 1,994 | 960 | 98.3% | $3,789 |
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 District: | |||||||||||||||||||||||||
PENN1 | |||||||||||||||||||||||||
(ground leased through 2098)** | Cisco, WSP USA, Symantec Corporation, | ||||||||||||||||||||||||
-Office | 100.0 | % | 92.6 | % | $ | 68.66 | 2,273,000 | 2,104,000 | 169,000 | United Healthcare Services, Inc., Siemens Mobility | |||||||||||||||
Bank of America, Kmart Corporation, | |||||||||||||||||||||||||
-Retail | 100.0 | % | 95.0 | % | 137.70 | 270,000 | 270,000 | — | Shake Shack, Starbucks | ||||||||||||||||
100.0 | % | 92.9 | % | 75.99 | 2,543,000 | 2,374,000 | 169,000 | $ | — | ||||||||||||||||
PENN2 | EMC, Information Builders, Inc., | ||||||||||||||||||||||||
-Office | 100.0 | % | 100.0 | % | 63.08 | 1,591,000 | 1,304,000 | 287,000 | Madison Square Garden, McGraw-Hill Companies, Inc. | ||||||||||||||||
-Retail | 100.0 | % | 100.0 | % | 218.19 | 45,000 | 39,000 | 6,000 | Chase Manhattan Bank | ||||||||||||||||
100.0 | % | 100.0 | % | 67.35 | 1,636,000 | 1,343,000 | 293,000 | 575,000 | |||||||||||||||||
PENN11 | |||||||||||||||||||||||||
-Office | 100.0 | % | 100.0 | % | 62.59 | 1,111,000 | 1,111,000 | — | Macy's, Madison Square Garden, AMC Networks, Inc. | ||||||||||||||||
PNC Bank National Association, Starbucks, | |||||||||||||||||||||||||
-Retail | 100.0 | % | 95.2 | % | 133.55 | 41,000 | 41,000 | — | Madison Square Garden | ||||||||||||||||
100.0 | % | 99.8 | % | 65.11 | 1,152,000 | 1,152,000 | — | 450,000 | |||||||||||||||||
100 West 33rd Street | |||||||||||||||||||||||||
-Office | 100.0 | % | 100.0 | % | 67.20 | 859,000 | 859,000 | — | 398,402 | IPG and affiliates | |||||||||||||||
Manhattan Mall | |||||||||||||||||||||||||
-Retail | 100.0 | % | 99.0 | % | 125.91 | 256,000 | 256,000 | — | 181,598 | JCPenney, Aeropostale, Express, Starbucks, Rose Mansion | |||||||||||||||
330 West 34th Street | |||||||||||||||||||||||||
(ground leased through 2149 - | |||||||||||||||||||||||||
34.8% ownership interest in the land)** | New York & Company, Inc., Structure Tone, | ||||||||||||||||||||||||
-Office | 100.0 | % | 100.0 | % | 63.08 | 701,000 | 701,000 | — | Deutsch, Inc., Web.com, Footlocker, Home Advisor, Inc. | ||||||||||||||||
-Retail | 100.0 | % | 54.3 | % | 124.38 | 21,000 | 21,000 | — | Starbucks, Ballast Point* | ||||||||||||||||
100.0 | % | 98.7 | % | 63.08 | 722,000 | 722,000 | — | 50,150 (3) | |||||||||||||||||
435 Seventh Avenue | |||||||||||||||||||||||||
-Retail | 100.0 | % | 100.0 | % | 187.82 | 43,000 | 43,000 | — | 95,696 | Forever 21* | |||||||||||||||
7 West 34th Street | |||||||||||||||||||||||||
-Office | 53.0 | % | 100.0 | % | 70.98 | 458,000 | 458,000 | — | Amazon | ||||||||||||||||
-Retail | 53.0 | % | 89.3 | % | 342.89 | 19,000 | 19,000 | — | Amazon, Lindt, Naturalizer* (guaranteed by Caleres) | ||||||||||||||||
53.0 | % | 99.6 | % | 81.81 | 477,000 | 477,000 | — | 300,000 | |||||||||||||||||
431 Seventh Avenue | |||||||||||||||||||||||||
-Retail | 100.0 | % | 100.0 | % | 269.45 | 10,000 | 10,000 | — | — | ||||||||||||||||
488 Eighth Avenue | |||||||||||||||||||||||||
-Retail | 100.0 | % | 100.0 | % | 90.32 | 6,000 | 6,000 | — | — | ||||||||||||||||
138-142 West 32nd Street | |||||||||||||||||||||||||
-Retail | 100.0 | % | 100.0 | % | 113.14 | 8,000 | 8,000 | — | — | ||||||||||||||||
150 West 34th Street | |||||||||||||||||||||||||
-Retail | 100.0 | % | 100.0 | % | 112.53 | 78,000 | 78,000 | — | 205,000 | Old Navy | |||||||||||||||
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 District (Continued): | |||||||||||||||||||||||||
137 West 33rd Street | |||||||||||||||||||||||||
-Retail | 100.0 | % | 100.0 | % | $ | 99.01 | 3,000 | 3,000 | — | $ | — | ||||||||||||||
131-135 West 33rd Street | |||||||||||||||||||||||||
-Retail | 100.0 | % | 100.0 | % | 55.08 | 23,000 | 23,000 | — | — | ||||||||||||||||
Total Penn District | 7,816,000 | 7,354,000 | 462,000 | 2,255,846 | |||||||||||||||||||||
Midtown East: | |||||||||||||||||||||||||
909 Third Avenue | |||||||||||||||||||||||||
(ground leased through 2063)** | IPG and affiliates, Forest Laboratories, | ||||||||||||||||||||||||
-Office | 100.0 | % | 98.6 | % | 65.82 | (4) | 1,352,000 | 1,352,000 | — | 350,000 | Geller & Company, Morrison Cohen LLP, | ||||||||||||||
United States Post Office, Thomson Reuters LLC, Sard Verbinnen* | |||||||||||||||||||||||||
150 East 58th Street | |||||||||||||||||||||||||
(ground leased through 2118)** | |||||||||||||||||||||||||
-Office | 100.0 | % | 96.8 | % | 77.67 | 540,000 | 540,000 | — | Castle Harlan, Tournesol Realty LLC (Peter Marino) | ||||||||||||||||
-Retail | 100.0 | % | 13.1 | % | 17.86 | 3,000 | 3,000 | — | |||||||||||||||||
100.0 | % | 96.3 | % | 77.34 | 543,000 | 543,000 | — | — | |||||||||||||||||
715 Lexington Avenue | |||||||||||||||||||||||||
-Retail | 100.0 | % | 100.0 | % | 124.80 | 23,000 | 23,000 | — | — | New York & Company, Inc., Jonathan Adler, Casper* | |||||||||||||||
966 Third Avenue | |||||||||||||||||||||||||
-Retail | 100.0 | % | 100.0 | % | 107.88 | 7,000 | 7,000 | — | — | McDonald's | |||||||||||||||
968 Third Avenue | |||||||||||||||||||||||||
-Retail | 50.0 | % | 100.0 | % | 165.23 | 7,000 | 7,000 | — | — | Wells Fargo | |||||||||||||||
Total Midtown East | 1,932,000 | 1,932,000 | — | 350,000 | |||||||||||||||||||||
Midtown West: | |||||||||||||||||||||||||
888 Seventh Avenue | |||||||||||||||||||||||||
(ground leased through 2067)** | Axon Capital LP, Lone Star US Acquisitions LLC, | ||||||||||||||||||||||||
-Office | 100.0 | % | 89.7 | % | 92.13 | 870,000 | 870,000 | — | Vornado Executive Headquarters, United Talent Agency | ||||||||||||||||
-Retail | 100.0 | % | 100.0 | % | 309.08 | 15,000 | 15,000 | — | Redeye Grill L.P. | ||||||||||||||||
100.0 | % | 89.9 | % | 95.80 | 885,000 | 885,000 | — | 375,000 | |||||||||||||||||
57th Street - 2 buildings | |||||||||||||||||||||||||
-Office | 50.0 | % | 84.6 | % | 49.18 | 81,000 | 81,000 | — | Various | ||||||||||||||||
-Retail | 50.0 | % | 100.0 | % | 140.39 | 22,000 | 22,000 | — | |||||||||||||||||
50.0 | % | 87.9 | % | 68.67 | 103,000 | 103,000 | — | 20,000 | |||||||||||||||||
Total Midtown West | 988,000 | 988,000 | — | 395,000 | |||||||||||||||||||||
Park Avenue: | |||||||||||||||||||||||||
280 Park Avenue | Cohen & Steers Inc., Franklin Templeton Co. LLC, | ||||||||||||||||||||||||
-Office | 50.0 | % | 93.5 | % | 101.93 | 1,234,000 | 1,234,000 | — | PJT Partners, Investcorp International Inc., GIC Inc., Wells Fargo | ||||||||||||||||
-Retail | 50.0 | % | 16.8 | % | 258.91 | 26,000 | 26,000 | — | Scottrade Inc., Starbucks | ||||||||||||||||
50.0 | % | 91.9 | % | 105.17 | 1,260,000 | 1,260,000 | — | 1,200,000 | |||||||||||||||||
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): | |||||||||||||||||||||||||
Park Avenue (Continued): | |||||||||||||||||||||||||
350 Park Avenue | Kissinger Associates Inc., Ziff Brothers Investment Inc., | ||||||||||||||||||||||||
-Office | 100.0 | % | 97.7 | % | $ | 110.80 | 553,000 | 553,000 | — | MFA Financial Inc., M&T Bank | |||||||||||||||
-Retail | 100.0 | % | 100.0 | % | 273.75 | 18,000 | 18,000 | — | Fidelity Investments, AT&T Wireless, Valley National Bank | ||||||||||||||||
100.0 | % | 97.8 | % | 115.94 | 571,000 | 571,000 | — | $ | 400,000 | ||||||||||||||||
Total Park Avenue | 1,831,000 | 1,831,000 | — | 1,600,000 | |||||||||||||||||||||
Grand Central: | |||||||||||||||||||||||||
90 Park Avenue | Alston & Bird, Capital One, PwC, MassMutual*, | ||||||||||||||||||||||||
-Office | 100.0 | % | 99.3 | % | 78.95 | 938,000 | 938,000 | — | Factset Research Systems Inc., Foley & Lardner | ||||||||||||||||
-Retail | 100.0 | % | 100.0 | % | 138.03 | 18,000 | 18,000 | — | Citibank, Starbucks | ||||||||||||||||
100.0 | % | 99.3 | % | 80.06 | 956,000 | 956,000 | — | — | |||||||||||||||||
330 Madison Avenue | Guggenheim Partners LLC, HSBC Bank AFS, Glencore Ltd., | ||||||||||||||||||||||||
-Office | 25.0 | % | 94.9 | % | 80.28 | 813,000 | 813,000 | — | Jones Lang LaSalle Inc., Wells Fargo, American Century | ||||||||||||||||
-Retail | 25.0 | % | 100.0 | % | 333.71 | 33,000 | 33,000 | — | Ann Taylor Retail Inc., Citibank, Starbucks | ||||||||||||||||
25.0 | % | 95.1 | % | 90.17 | 846,000 | 846,000 | — | 500,000 | |||||||||||||||||
510 Fifth Avenue | |||||||||||||||||||||||||
-Retail | 100.0 | % | 100.0 | % | 162.01 | 66,000 | 66,000 | — | — | The North Face, Elie Tahari | |||||||||||||||
Total Grand Central | 1,868,000 | 1,868,000 | — | 500,000 | |||||||||||||||||||||
Madison/Fifth: | |||||||||||||||||||||||||
640 Fifth Avenue | Fidelity Investments, Owl Creek Asset Management LP, | ||||||||||||||||||||||||
-Office | 52.0 | % | 95.6 | % | 95.91 | 246,000 | 246,000 | — | Avolon Aerospace, GCA Savvian Inc. | ||||||||||||||||
-Retail | 52.0 | % | 100.0 | % | 921.12 | 69,000 | 69,000 | — | Victoria's Secret (guaranteed by L Brands, Inc.), Dyson | ||||||||||||||||
52.0 | % | 96.5 | % | 276.67 | 315,000 | 315,000 | — | 500,000 | |||||||||||||||||
666 Fifth Avenue | |||||||||||||||||||||||||
-Retail | 52.0 | % | (5) | 100.0 | % | 486.66 | 114,000 | 114,000 | — | — | Fast Retailing (Uniqlo), Hollister, Tissot | ||||||||||||||
595 Madison Avenue | Beauvais Carpets, Levin Capital Strategies LP, | ||||||||||||||||||||||||
-Office | 100.0 | % | 90.3 | % | 86.97 | 302,000 | 302,000 | — | Cosmetech Mably Int'l LLC. | ||||||||||||||||
-Retail | 100.0 | % | 39.2 | % | 1,315.73 | 29,000 | 29,000 | — | Coach | ||||||||||||||||
100.0 | % | 85.8 | % | 194.63 | 331,000 | 331,000 | — | — | |||||||||||||||||
650 Madison Avenue | Memorial Sloan Kettering Cancer Center, Polo Ralph Lauren, | ||||||||||||||||||||||||
-Office | 20.1 | % | 97.9 | % | 114.68 | 564,000 | 564,000 | — | Willett Advisors LLC (Bloomberg Philanthropies), Sotheby's International Realty, Inc.* | ||||||||||||||||
-Retail | 20.1 | % | 82.0 | % | 1,114.58 | 39,000 | 39,000 | — | Moncler USA Inc., Tod's, Celine | ||||||||||||||||
20.1 | % | 96.9 | % | 179.35 | 603,000 | 603,000 | — | 800,000 | |||||||||||||||||
689 Fifth Avenue | |||||||||||||||||||||||||
-Office | 52.0 | % | 100.0 | % | 90.26 | 81,000 | 81,000 | — | Yamaha Artist Services Inc., Brunello Cucinelli USA Inc. | ||||||||||||||||
-Retail | 52.0 | % | 100.0 | % | 883.01 | 17,000 | 17,000 | — | MAC Cosmetics, Massimo Dutti | ||||||||||||||||
52.0 | % | 100.0 | % | 227.78 | 98,000 | 98,000 | — | — | |||||||||||||||||
655 Fifth Avenue | |||||||||||||||||||||||||
-Retail | 50.0 | % | 100.0 | % | 272.52 | 57,000 | 57,000 | — | — | Ferragamo | |||||||||||||||
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 (Continued): | |||||||||||||||||||||||||
697-703 Fifth Avenue | |||||||||||||||||||||||||
-Retail | 44.8 | % | 100.0 | % | $ | 2,979.07 | 26,000 | 26,000 | — | $ | 450,000 | Swatch Group USA, Harry Winston | |||||||||||||
Total Madison/Fifth | 1,544,000 | 1,544,000 | 1,750,000 | ||||||||||||||||||||||
Midtown South: | |||||||||||||||||||||||||
770 Broadway | |||||||||||||||||||||||||
-Office | 100.0 | % | 100.0 | % | 99.67 | 1,078,000 | 1,078,000 | — | Facebook, Oath (Verizon) | ||||||||||||||||
-Retail | 100.0 | % | 92.5 | % | 62.79 | 105,000 | 105,000 | — | Bank of America, Kmart Corporation | ||||||||||||||||
100.0 | % | 99.3 | % | 96.39 | 1,183,000 | 1,183,000 | — | 700,000 | |||||||||||||||||
One Park Avenue | New York University, Clarins USA Inc., | ||||||||||||||||||||||||
BMG Rights Management, Robert A.M. Stern Architect, | |||||||||||||||||||||||||
-Office | 55.0 | % | 100.0 | % | 59.37 | 865,000 | 865,000 | — | automotiveMastermind | ||||||||||||||||
-Retail | 55.0 | % | 100.0 | % | 87.40 | 78,000 | 78,000 | — | Bank of Baroda, Citibank, Equinox, Men's Wearhouse | ||||||||||||||||
55.0 | % | 100.0 | % | 61.69 | 943,000 | 943,000 | — | 300,000 | |||||||||||||||||
4 Union Square South | Burlington, Whole Foods Market, DSW, | ||||||||||||||||||||||||
-Retail | 100.0 | % | 100.0 | % | 118.14 | 206,000 | 206,000 | — | 120,000 | Forever 21 | |||||||||||||||
692 Broadway | |||||||||||||||||||||||||
-Retail | 100.0 | % | 100.0 | % | 95.04 | 36,000 | 36,000 | — | — | Equinox, Oath (Verizon) | |||||||||||||||
Total Midtown South | 2,368,000 | 2,368,000 | — | 1,120,000 | |||||||||||||||||||||
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, Cella, Harper & Scinto, | |||||||||||||||||||||||||
-Office | 70.0 | % | 98.0 | % | 84.31 | 2,042,000 | 2,042,000 | — | Columbia University, LinkLaters* | ||||||||||||||||
-Retail | 70.0 | % | 100.0 | % | 189.96 | 76,000 | 76,000 | — | Duane Reade, JPMorgan Chase Bank, Sovereign Bank, Starbucks | ||||||||||||||||
70.0 | % | 98.1 | % | 88.11 | 2,118,000 | 2,118,000 | — | 950,000 | |||||||||||||||||
608 Fifth Avenue | |||||||||||||||||||||||||
(ground leased through 2033)** | |||||||||||||||||||||||||
-Office | 100.0 | % | 94.6 | % | 78.48 | 93,000 | 93,000 | — | |||||||||||||||||
-Retail | 100.0 | % | — | — | 44,000 | — | 44,000 | ||||||||||||||||||
100.0 | % | 94.6 | % | 78.48 | 137,000 | 93,000 | 44,000 | — | |||||||||||||||||
Total Rockefeller Center | 2,255,000 | 2,211,000 | 44,000 | 950,000 | |||||||||||||||||||||
Wall Street/Downtown: | |||||||||||||||||||||||||
40 Fulton Street | |||||||||||||||||||||||||
-Office | 100.0 | % | 73.6 | % | 51.81 | 246,000 | 246,000 | — | Market News International Inc., Fortune Media Group* | ||||||||||||||||
-Retail | 100.0 | % | 100.0 | % | 108.70 | 5,000 | 5,000 | — | TD Bank | ||||||||||||||||
100.0 | % | 74.1 | % | 52.94 | 251,000 | 251,000 | — | — | |||||||||||||||||
Soho: | |||||||||||||||||||||||||
478-486 Broadway - 2 buildings | |||||||||||||||||||||||||
-Retail | 100.0 | % | 33.1 | % | 121.63 | 65,000 | 65,000 | — | Madewell, J. Crew | ||||||||||||||||
-Residential (10 units) | 100.0 | % | 100.0 | % | 20,000 | 20,000 | — | ||||||||||||||||||
100.0 | % | 48.8 | % | 85,000 | 85,000 | — | — |
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): | |||||||||||||||||||||||||
Soho (Continued): | |||||||||||||||||||||||||
443 Broadway | |||||||||||||||||||||||||
-Retail | 100.0 | % | 100.0 | % | $ | 105.96 | 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 | % | 69.2 | % | 13,000 | 13,000 | — | — | ||||||||||||||||||
334 Canal Street | |||||||||||||||||||||||||
-Retail | 100.0 | % | 100.0 | % | 100.20 | 4,000 | 4,000 | — | |||||||||||||||||
-Residential (4 units) | 100.0 | % | 100.0 | % | — | 11,000 | 11,000 | — | |||||||||||||||||
100.0 | % | 100.0 | % | 15,000 | 15,000 | — | — | ||||||||||||||||||
155 Spring Street | |||||||||||||||||||||||||
-Retail | 100.0 | % | 98.7 | % | 130.00 | 50,000 | 50,000 | — | — | Vera Bradley | |||||||||||||||
148 Spring Street | |||||||||||||||||||||||||
-Retail | 100.0 | % | 100.0 | % | 195.53 | 8,000 | 8,000 | — | — | Dr. Martens | |||||||||||||||
150 Spring Street | |||||||||||||||||||||||||
-Retail | 100.0 | % | 100.0 | % | 294.27 | 6,000 | 6,000 | — | Sandro | ||||||||||||||||
-Residential (1 unit) | 100.0 | % | 100.0 | % | 1,000 | 1,000 | — | ||||||||||||||||||
100.0 | % | 100.0 | % | 7,000 | 7,000 | — | — | ||||||||||||||||||
Total Soho | 194,000 | 194,000 | — | — | |||||||||||||||||||||
Times Square: | |||||||||||||||||||||||||
1540 Broadway | Forever 21, Planet Hollywood, Disney, Sunglass Hut, | ||||||||||||||||||||||||
-Retail | 52.0 | % | 100.0 | % | 287.64 | 161,000 | 161,000 | — | — | MAC Cosmetics, U.S. Polo | |||||||||||||||
1535 Broadway | |||||||||||||||||||||||||
-Retail | 52.0 | % | 95.3 | % | 1,052.11 | 45,000 | 45,000 | — | T-Mobile, Invicta, Swatch Group USA, Levi's, Sephora | ||||||||||||||||
-Theatre | 52.0 | % | 100.0 | % | 13.90 | 62,000 | 62,000 | — | Nederlander-Marquis Theatre | ||||||||||||||||
52.0 | % | 98.0 | % | 392.34 | 107,000 | 107,000 | — | — | |||||||||||||||||
Total Times Square | 268,000 | 268,000 | — | — | |||||||||||||||||||||
Upper East Side: | |||||||||||||||||||||||||
828-850 Madison Avenue | |||||||||||||||||||||||||
-Retail | 100.0 | % | 89.8 | % | 422.98 | 18,000 | 14,000 | 4,000 | — | Gucci, Christofle Silver Inc. | |||||||||||||||
677-679 Madison Avenue | |||||||||||||||||||||||||
-Retail | 100.0 | % | 100.0 | % | 522.29 | 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) | |||||||||||||||||||||||||
-Retail | 100.0 | % | 42.8 | % | 1,352.60 | 11,000 | 11,000 | — | John Varvatos | ||||||||||||||||
-Residential (5 units) | 100.0 | % | 100.0 | % | 12,000 | 12,000 | — | ||||||||||||||||||
100.0 | % | 72.7 | % | 23,000 | 23,000 | — | — | ||||||||||||||||||
1131 Third Avenue | |||||||||||||||||||||||||
-Retail | 100.0 | % | 100.0 | % | 176.99 | 23,000 | 23,000 | — | — | Nike, Crunch LLC, J.Jill | |||||||||||||||
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): | |||||||||||||||||||||||||
Upper East Side (Continued): | |||||||||||||||||||||||||
Other | |||||||||||||||||||||||||
-Retail - 2 buildings | 100.0 | % | 100.0 | % | $ | — | 15,000 | 15,000 | — | ||||||||||||||||
-Residential (8 units) | 100.0 | % | 100.0 | % | 7,000 | 3,000 | 4,000 | ||||||||||||||||||
100.0 | % | 100.0 | % | 22,000 | 18,000 | 4,000 | $ | — | |||||||||||||||||
Total Upper East Side | 99,000 | 91,000 | 8,000 | — | |||||||||||||||||||||
Long Island City: | |||||||||||||||||||||||||
33-00 Northern Boulevard (Center Building) | |||||||||||||||||||||||||
-Office | 100.0 | % | 95.5 | % | 36.28 | 471,000 | 471,000 | — | 100,000 | The City of New York, NYC Transit Authority | |||||||||||||||
Chelsea/Meatpacking District: | |||||||||||||||||||||||||
260 Eleventh Avenue | |||||||||||||||||||||||||
(ground leased through 2114)** | |||||||||||||||||||||||||
-Office | 100.0 | % | 100.0 | % | 52.84 | 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 | % | 99.8 | % | 88.84 | 586,000 | 586,000 | — | Moet Hennessy USA. Inc. | ||||||||||||||||
-Retail | 49.9 | % | 96.4 | % | 79.50 | 43,000 | 43,000 | — | IL Posto LLC, Toro NYC Restaurant, L'Atelier | ||||||||||||||||
49.9 | % | 99.5 | % | 88.21 | 629,000 | 629,000 | — | 625,000 | |||||||||||||||||
537 West 26th Street | |||||||||||||||||||||||||
-Retail | 100 | % | — | — | 14,000 | 14,000 | — | — | |||||||||||||||||
61 Ninth Avenue | |||||||||||||||||||||||||
(ground leased through 2115)** | |||||||||||||||||||||||||
-Office | 45.1 | % | 100.0 | % | 107.69 | 143,000 | 143,000 | — | Aetna Life Insurance Company | ||||||||||||||||
-Retail | 45.1 | % | 100.0 | % | 292,04 | 23,000 | 23,000 | — | Starbucks | ||||||||||||||||
45.1 | % | 100.0 | % | 133.23 | 166,000 | 166,000 | — | 167,500 | |||||||||||||||||
Total Chelsea/Meatpacking District | 993,000 | 993,000 | — | 792,500 | |||||||||||||||||||||
Upper West Side: | |||||||||||||||||||||||||
50-70 W 93rd Street | |||||||||||||||||||||||||
-Residential (325 units) | 49.9 | % | 96.6 | % | 283,000 | 283,000 | — | 80,000 | |||||||||||||||||
Tribeca: | |||||||||||||||||||||||||
Independence Plaza | |||||||||||||||||||||||||
-Residential (1,327 units) | 50.1 | % | 95.7 | % | 1,185,000 | 1,185,000 | — | ||||||||||||||||||
-Retail | 50.1 | % | 100.0 | % | 64.54 | 72,000 | 38,000 | 34,000 | Duane Reade | ||||||||||||||||
50.1 | % | 95.9 | % | 64.54 | 1,257,000 | 1,223,000 | 34,000 | 675,000 | |||||||||||||||||
339 Greenwich Street | |||||||||||||||||||||||||
-Retail | 100.0 | % | 100.0 | % | 112.42 | 8,000 | 8,000 | — | — | Sarabeth's | |||||||||||||||
Total Tribeca | 1,265,000 | 1,231,000 | 34,000 | 675,000 | |||||||||||||||||||||
New Jersey: | |||||||||||||||||||||||||
Paramus | |||||||||||||||||||||||||
-Office | 100.0 | % | 88.6 | % | 25.70 | 129,000 | 129,000 | — | — | Vornado's Administrative Headquarters | |||||||||||||||
Washington D.C.: | |||||||||||||||||||||||||
3040 M Street | |||||||||||||||||||||||||
-Retail | 100.0 | % | 100.0 | % | 80.10 | 44,000 | 44,000 | — | — | Nike, Amazon | |||||||||||||||
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): | |||||||||||||||||||||||||
Property under Development: | |||||||||||||||||||||||||
512 West 22nd Street | |||||||||||||||||||||||||
-Office | 55.0 | % | — | $ | — | 173,000 | — | 173,000 | $ | 106,424 | |||||||||||||||
606 Broadway (19 East Houston Street) | |||||||||||||||||||||||||
-Office | 50.0 | % | — | — | 30,000 | — | 30,000 | WeWork* | |||||||||||||||||
-Retail | 50.0 | % | 100.0 | % | 669.29 | 5,000 | 3,000 | 2,000 | HSBC* | ||||||||||||||||
50.0 | % | 100.0 | % | 669.29 | 35,000 | 3,000 | 32,000 | 58,603 | |||||||||||||||||
Farley Office and Retail Building (ground and building leased through 2116)** | |||||||||||||||||||||||||
-Office | 95.0 | % | — | — | 725,000 | — | 725,000 | ||||||||||||||||||
-Retail | 95.0 | % | — | — | 120,000 | — | 120,000 | ||||||||||||||||||
95.0 | % | — | — | 845,000 | — | 845,000 | — | ||||||||||||||||||
825 Seventh Avenue | |||||||||||||||||||||||||
-Office | 50.0 | % | — | — | 165,000 | — | 165,000 | ||||||||||||||||||
-Retail | 100.0 | % | — | — | 4,000 | — | 4,000 | ||||||||||||||||||
51.2 | % | — | — | 169,000 | — | 169,000 | 20,500 | ||||||||||||||||||
Total Property under Development | 1,222,000 | 3,000 | 1,219,000 | 185,527 | |||||||||||||||||||||
Properties to be Developed: | |||||||||||||||||||||||||
57th Street (3 properties) | |||||||||||||||||||||||||
-Office | 50.0 | % | — | — | — | — | — | — | |||||||||||||||||
-Retail | 50.0 | % | — | — | — | — | — | — | |||||||||||||||||
Eighth Avenue and 34th Street (4 properties) | |||||||||||||||||||||||||
-Retail | 100.0 | % | — | — | — | — | — | — | |||||||||||||||||
Total Properties to be Developed | — | — | — | — | |||||||||||||||||||||
New York Office: | |||||||||||||||||||||||||
Total | 96.7 | % | $ | 77.77 | 21,497,000 | 19,948,000 | 1,549,000 | $ | 8,887,976 | ||||||||||||||||
Vornado's Ownership Interest | 96.7 | % | $ | 75.52 | 17,821,000 | 16,484,000 | 1,337,000 | $ | 5,967,017 | ||||||||||||||||
New York Retail: | |||||||||||||||||||||||||
Total | 95.0 | % | $ | 237.08 | 2,791,000 | 2,577,000 | 214,000 | $ | 1,110,897 | ||||||||||||||||
Vornado's Ownership Interest | 94.7 | % | $ | 197.78 | 2,294,000 | 2,104,000 | 190,000 | $ | 833,131 | ||||||||||||||||
New York Residential: | |||||||||||||||||||||||||
Total | 95.9 | % | 1,533,000 | 1,529,000 | 4,000 | $ | 755,000 | ||||||||||||||||||
Vornado's Ownership Interest | 95.9 | % | 800,000 | 796,000 | 4,000 | $ | 378,095 |
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 | % | $ | 118.42 | 936,000 | 936,000 | — | $ | 500,000 | Bloomberg | |||||||||||||
-Retail | 32.4 | % | 100.0 | % | 212.75 | 139,000 | 139,000 | — | 350,000 | Hennes & Mauritz, The Home Depot, The Container Store, Hutong | |||||||||||||||
32.4 | % | 100.0 | % | 129.98 | 1,075,000 | 1,075,000 | — | 850,000 | |||||||||||||||||
Rego Park I, Queens (4.8 acres) | 32.4 | % | 100.0 | % | 46.93 | 343,000 | 148,000 | 195,000 | — | Burlington, Bed Bath & Beyond, Marshalls | |||||||||||||||
Rego Park II (adjacent to Rego Park I), | |||||||||||||||||||||||||
Queens (6.6 acres) | 32.4 | % | 91.5 | % | 44.50 | 609,000 | 609,000 | — | 56,836 | (6) | Century 21, Costco, Kohl's, TJ Maxx | ||||||||||||||
Flushing, Queens (1.0 acre ground leased through 2037)** | 32.4 | % | 100.0 | % | 18.22 | 167,000 | 167,000 | — | — | New World Mall LLC | |||||||||||||||
The Alexander Apartment Tower, | |||||||||||||||||||||||||
Rego Park, Queens, NY | |||||||||||||||||||||||||
Residential (312 units) | 32.4 | % | 96.2 | % | — | 255,000 | 255,000 | — | — | ||||||||||||||||
New Jersey: | |||||||||||||||||||||||||
Paramus, New Jersey | |||||||||||||||||||||||||
(30.3 acres ground leased to IKEA through 2041)** | 32.4 | % | 100.0 | % | — | — | — | — | 68,000 | IKEA (ground lessee) | |||||||||||||||
Property to be Developed: | |||||||||||||||||||||||||
Rego Park III (adjacent to Rego Park II), | |||||||||||||||||||||||||
Queens, NY (3.4 acres) | 32.4 | % | — | — | — | — | — | — | |||||||||||||||||
Total Alexander's | 32.4 | % | 97.3 | % | 84.17 | 2,449,000 | 2,254,000 | 195,000 | 974,836 | ||||||||||||||||
Hotel Pennsylvania: | |||||||||||||||||||||||||
-Hotel (1,700 Rooms) | 100.0 | % | 1,400,000 | 1,400,000 | — | — | |||||||||||||||||||
Total New York | 96.6 | % | $ | 93.49 | 29,670,000 | 27,708,000 | 1,962,000 | $ | 11,728,709 | ||||||||||||||||
Vornado's Ownership Interest | 96.5 | % | $ | 78.34 | 23,108,000 | 21,514,000 | 1,594,000 | $ | 7,494,090 |
(1) | Weighted average annual rent per square foot for office properties excludes garages and de minimis amounts of storage space. Weighted average annual rent per square foot for retail excludes non-selling space. |
(2) | Represents the contractual debt obligations. |
(3) | Amount represents debt on land which is owned 34.8% by Vornado. |
(4) | Excludes US Post Office leased through 2038 (including three five-year renewal options) for which the annual escalated rent is $13.48 PSF. |
(5) | 75,000 square feet is leased from 666 Fifth Avenue Office Condominium. |
(6) | Net of $195,708 of Alexander's participation in its Rego Park II shopping center mortgage loan which is considered partially extinguished as the participation interest is a reacquisition of debt. |
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 | ||||||||||||||||||||||
theMART: | |||||||||||||||||||||||||
theMART, Chicago | Motorola Mobility (guaranteed by Google), | ||||||||||||||||||||||||
CCC Information Services, Ogilvy Group (WPP), | |||||||||||||||||||||||||
Publicis Groupe (Razorfish), ANGI Home Services, Inc, | |||||||||||||||||||||||||
1871, Yelp Inc., Paypal, Inc., Allscripts Healthcare, | |||||||||||||||||||||||||
Chicago School of Professional Psychology, Kellogg Company, | |||||||||||||||||||||||||
Innovation Development Institute, Inc., Chicago Teachers Union, | |||||||||||||||||||||||||
-Office | 100.0 | % | 93.9 | % | $ | 44.02 | 2,045,000 | 2,045,000 | — | ConAgra Foods Inc., Allstate Insurance Company | |||||||||||||||
Steelcase, Baker, Knapp & Tubbs, Holly Hunt Ltd., | |||||||||||||||||||||||||
-Showroom/Trade show | 100.0 | % | 96.0 | % | 53.83 | 1,533,000 | 1,533,000 | — | Allsteel Inc., Herman Miller Inc., Teknion LLC | ||||||||||||||||
-Retail | 100.0 | % | 95.1 | % | 55.73 | 96,000 | 96,000 | — | |||||||||||||||||
100.0 | % | 94.8 | % | 48.45 | 3,674,000 | 3,674,000 | — | $ | 675,000 | ||||||||||||||||
Other (2 properties) | 50.0 | % | 100.0 | % | 44.19 | 19,000 | 19,000 | — | 31,843 | ||||||||||||||||
Total theMART | 94.8 | % | $ | 48.43 | 3,693,000 | 3,693,000 | — | $ | 706,843 | ||||||||||||||||
Vornado's Ownership Interest | 94.8 | % | $ | 48.43 | 3,684,000 | 3,684,000 | — | $ | 690,921 | ||||||||||||||||
555 California Street: | |||||||||||||||||||||||||
555 California Street | 70.0 | % | 99.4 | % | $ | 80.08 | 1,506,000 | 1,506,000 | — | $ | 554,464 | Bank of America, N.A., 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, Sidley Austin | |||||||||||||||||||||||||
315 Montgomery Street | 70.0 | % | 100.0 | % | 76.07 | 235,000 | 235,000 | — | — | Bank of America, N.A., Regus, Ripple Labs Inc., Lending Home Corporation, Blue Shield | |||||||||||||||
345 Montgomery Street | 70.0 | % | — | — | 78,000 | — | 78,000 | — | Regus* | ||||||||||||||||
Total 555 California Street | 99.5 | % | $ | 79.54 | 1,819,000 | 1,741,000 | 78,000 | $ | 554,464 | ||||||||||||||||
Vornado's Ownership Interest | 99.5 | % | $ | 79.54 | 1,273,000 | 1,218,000 | 55,000 | $ | 388,125 | ||||||||||||||||
(1) | Weighted average annual rent per square foot excludes ground rent, storage rent and garages. |
(2) | Represents the contractual debt obligations. |
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 | % | $ | 248.07 | 96,000 | 96,000 | — | Sephora, Bank of America | |||||||||||||||
-Residential (39 units) | 100.0 | % | 97.4 | % | 59,000 | 59,000 | — | ||||||||||||||||||
100.0 | % | 155,000 | 155,000 | — | $ | 143,335 | |||||||||||||||||||
Crowne Plaza Times Square (0.64 acres owned in fee; 0.18 acres ground leased through 2187 and 0.05 acres ground leased through 2035)** | |||||||||||||||||||||||||
-Hotel (795 Rooms) | |||||||||||||||||||||||||
-Retail | 75.3 | % | 99.4 | % | 156.72 | 50,000 | 50,000 | — | New York Sports Club, Krispy Kreme, BHT Broadway | ||||||||||||||||
-Office | 75.3 | % | 100.0 | % | 50.37 | 196,000 | 196,000 | — | American Management Association, Open Jar, Association for Computing Machinery* | ||||||||||||||||
75.3 | % | 99.9 | % | 71.99 | 246,000 | 246,000 | — | 266,003 | |||||||||||||||||
501 Broadway | 100.0 | % | 100.0 | % | 265.75 | 9,000 | 9,000 | — | 22,872 | Capital One Financial Corporation | |||||||||||||||
Miami, FL: | |||||||||||||||||||||||||
1100 Lincoln Road | |||||||||||||||||||||||||
-Retail | 100.0 | % | 65.4 | % | 166.10 | 51,000 | 51,000 | — | Banana Republic | ||||||||||||||||
-Theatre | 100.0 | % | 100.0 | % | 42.78 | 79,000 | 79,000 | — | Regal Cinema | ||||||||||||||||
100.0 | % | 86.4 | % | 77.13 | 130,000 | 130,000 | — | 82,750 | |||||||||||||||||
Total Real Estate Fund | 88.7 | % | 95.7 | % | 540,000 | 540,000 | — | $ | 514,960 | ||||||||||||||||
Vornado's Ownership Interest | 28.6 | % | 96.8 | % | 155,000 | 155,000 | — | $ | 112,314 |
(1) | Weighted average annual rent per square foot excludes ground rent, storage rent and garages. |
(2) | Represents the contractual debt obligations. |
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: | ||||||||||||||||||||||||||||
Virginia: | ||||||||||||||||||||||||||||
Rosslyn Plaza | ||||||||||||||||||||||||||||
-Office - 4 buildings | 46.2 | % | 62.8 | % | $ | 44.98 | 736,000 | 432,000 | — | 304,000 | Gartner, Nathan Associates, Inc. | |||||||||||||||||
-Residential - 2 buildings (197 units) | 43.7 | % | 98.0 | % | 253,000 | 253,000 | — | — | ||||||||||||||||||||
989,000 | 685,000 | — | 304,000 | $ | 39,360 | |||||||||||||||||||||||
Fashion Centre Mall | 7.5 | % | 98.3 | % | 49.48 | 868,000 | 868,000 | — | — | 410,000 | Macy's, Nordstrom | |||||||||||||||||
Washington Tower | 7.5 | % | 100.0 | % | 50.47 | 170,000 | 170,000 | — | — | 40,000 | Computer Science Corp. | |||||||||||||||||
New Jersey: | ||||||||||||||||||||||||||||
Wayne Town Center, Wayne (ground leased through 2064)** | 100.0 | % | 100.0 | % | 31.92 | 676,000 | 233,000 | 443,000 | — | . | JCPenney, Costco, Dick's Sporting Goods, | |||||||||||||||||
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 | 92.3 | % | $ | 40.85 | 2,831,000 | 2,084,000 | 443,000 | 304,000 | $ | 489,360 | ||||||||||||||||||
Vornado's Ownership Interest | 93.0 | % | $ | 31.98 | 1,332,000 | 749,000 | 443,000 | 140,000 | $ | 53,591 |
(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. |
INVESTOR INFORMATION | |||||
Executive Officers: | |||||
Steven Roth | Chairman of the Board and Chief Executive Officer | ||||
David R. Greenbaum | Vice Chairman | ||||
Michael J. Franco | President | ||||
Joseph Macnow | Executive Vice President - Chief Financial Officer and Chief Administrative Officer | ||||
Haim Chera | Executive Vice President - Head of Retail | ||||
Barry S. Langer | Executive Vice President - Development - Co-Head of Real Estate | ||||
Glen J. Weiss | Executive Vice President - Office Leasing - Co-Head of Real Estate | ||||
RESEARCH COVERAGE - EQUITY | |||||
James Feldman/Alexander Pernokas | Steve Sakwa/Jason Green | Nicholas Yulico/Joshua Burr | |||
Bank of America/Merrill Lynch | Evercore ISI | Scotia Capital (USA) Inc | |||
646-855-5808/646-556-3329 | 212-446-9462/212-446-9449 | 212-225-6904/212-225-5415 | |||
Ross Smotrich/Dan Occhionero | Daniel Ismail/Dylan Burzinski | John W. Guinee/Aaron Wolf | |||
Barclays Capital | Green Street Advisors | Stifel Nicolaus & Company | |||
212-526-2306/212-526-7164 | 949-640-8780 | 443-224-1307/443-224-1206 | |||
John P. Kim/Frank Lee | Anthony Paolone/Patrice Chen | Michael Lewis/Alexei Siniakov | |||
BMO Capital Markets | JP Morgan | SunTrust Robinson Humphrey | |||
212-885-4115/415-591-2129 | 212-622-6682/212-622-1893 | 212-319-5659/212-590-0986 | |||
Michael Bilerman/Emmanuel Korchman | Vikram Malhotra/Adam J. Gabalski | ||||
Citi | Morgan Stanley | ||||
212-816-1383/212-816-1382 | 212-761-7064/212-761-8051 | ||||
Derek Johnston/Tom Hennessy | Alexander Goldfarb/Daniel Santos | ||||
Deutsche Bank | Sandler O'Neill | ||||
904-520-4973/212-250-4063 | 212-466-7937/212-466-7927 | ||||
RESEARCH COVERAGE - DEBT | |||||
Andrew Molloy | Jesse Rosenthal | ||||
Bank of America/Merrill Lynch | CreditSights | ||||
646-855-6435 | 212-340-3816 | ||||
Thierry Perrein | Mark Streeter | ||||
Wells Fargo Securities | JP Morgan | ||||
704-410-3262 | 212-834-5086 | ||||
Research Coverage - Equity and Debt 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. |
FINANCIAL SUPPLEMENT DEFINITIONS |
NON-GAAP RECONCILIATIONS RECONCILIATION OF NET INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS TO NET INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS, AS ADJUSTED (unaudited) | ||||||||||||||||||||
(Amounts in thousands, except per share amounts) | ||||||||||||||||||||
For the Three Months Ended | For the Six Months Ended June 30, | |||||||||||||||||||
June 30, | March 31, 2019 | |||||||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||||||
Net income attributable to common shareholders | (A) | $ | 2,400,195 | $ | 111,534 | $ | 181,488 | $ | 2,581,683 | $ | 93,693 | |||||||||
Per diluted share | $ | 12.56 | $ | 0.58 | $ | 0.95 | $ | 13.51 | $ | 0.49 | ||||||||||
Certain (income) expense items that impact net income attributable to common shareholders: | ||||||||||||||||||||
Net gain on transfer to Fifth Avenue and Times Square retail JV, net of $11,945 attributable to noncontrolling interests | $ | (2,559,154 | ) | $ | — | $ | — | $ | (2,559,154 | ) | $ | — | ||||||||
Non-cash impairment losses and related write-offs, substantially 608 Fifth Avenue | 108,592 | — | — | 108,592 | — | |||||||||||||||
After-tax net gain on sale of 220 Central Park South ("220 CPS") condominium units | (88,921 | ) | — | (130,954 | ) | (219,875 | ) | — | ||||||||||||
Our share of loss (income) from real estate fund investments | 20,758 | (551 | ) | 2,904 | 23,662 | (1,365 | ) | |||||||||||||
Mark-to-market (increase) decrease in PREIT common shares (accounted for as a marketable security from March 12, 2019) | (1,313 | ) | — | 15,649 | 14,336 | — | ||||||||||||||
Net gains on sale of real estate | — | (24,449 | ) | — | — | (24,436 | ) | |||||||||||||
Mark-to-market (increase) decrease in Lexington common shares (sold on March 1, 2019) | — | (15,883 | ) | (16,068 | ) | (16,068 | ) | 16,992 | ||||||||||||
Profit participation on the April 2018 sale of 701 Seventh Avenue | — | (5,457 | ) | — | — | (5,457 | ) | |||||||||||||
Previously capitalized internal leasing costs(1) | — | (1,358 | ) | — | — | (2,706 | ) | |||||||||||||
Our share of loss from 666 Fifth Avenue Office Condominium (49.5% interest) | — | 1,269 | — | — | 4,761 | |||||||||||||||
Net gain from sale of UE common shares (sold on March 4, 2019) | — | — | (62,395 | ) | (62,395 | ) | — | |||||||||||||
Prepayment penalty in connection with redemption of $400 million 5.00% senior unsecured notes due January 2022 | — | — | 22,540 | 22,540 | — | |||||||||||||||
Our share of disputed additional New York City transfer taxes | — | — | — | — | 23,503 | |||||||||||||||
Preferred share issuance costs | — | — | — | — | 14,486 | |||||||||||||||
Other | 2,802 | 817 | 1,152 | 3,954 | 6,792 | |||||||||||||||
(2,517,236 | ) | (45,612 | ) | (167,172 | ) | (2,684,408 | ) | 32,570 | ||||||||||||
Noncontrolling interests' share of above adjustments | 159,593 | 2,837 | 10,498 | 170,191 | (2,029 | ) | ||||||||||||||
Total of certain (income) expense items that impact net income attributable to common shareholders | (B) | $ | (2,357,643 | ) | $ | (42,775 | ) | $ | (156,674 | ) | $ | (2,514,217 | ) | $ | 30,541 | |||||
Per diluted share (non-GAAP) | $ | (12.34 | ) | $ | (0.22 | ) | $ | (0.82 | ) | $ | (13.16 | ) | $ | 0.16 | ||||||
Net income attributable to common shareholders, as adjusted (non-GAAP) | (A+B) | $ | 42,552 | $ | 68,759 | $ | 24,814 | $ | 67,466 | $ | 124,234 | |||||||||
Per diluted share (non-GAAP) | $ | 0.22 | $ | 0.36 | $ | 0.13 | $ | 0.35 | $ | 0.65 |
(1) | "Net income, as adjusted" for the three and six months ended June 30, 2018 have been reduced by $1,358 and $2,706, or $0.01 and $0.01 per diluted share, respectively, for previously capitalized internal leasing costs to present 2018 “as adjusted” financial results on a comparable basis with the current year as a result of the January 1, 2019 adoption of a new GAAP accounting standard under which internal leasing costs can no longer be capitalized. |
NON-GAAP RECONCILIATIONS RECONCILIATION OF NET INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS TO FFO ATTRIBUTABLE TO COMMON SHAREHOLDERS PLUS ASSUMED CONVERSIONS (unaudited) | ||||||||||||||||||||
(Amounts in thousands, except per share amounts) | ||||||||||||||||||||
For the Three Months Ended | For the Six Months Ended June 30, | |||||||||||||||||||
June 30, | March 31, 2019 | |||||||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||||||
Reconciliation of our net income attributable to common shareholders to FFO attributable to common shareholders plus assumed conversions (non-GAAP): | ||||||||||||||||||||
Net income attributable to common shareholders | (A) | $ | 2,400,195 | $ | 111,534 | $ | 181,488 | $ | 2,581,683 | $ | 93,693 | |||||||||
Per diluted share | $ | 12.56 | $ | 0.58 | $ | 0.95 | $ | 13.51 | $ | 0.49 | ||||||||||
FFO adjustments: | ||||||||||||||||||||
Depreciation and amortization of real property | $ | 105,453 | $ | 103,599 | $ | 108,483 | $ | 213,936 | $ | 204,009 | ||||||||||
Net gains on sale of real estate | — | (24,177 | ) | — | — | (24,177 | ) | |||||||||||||
Real estate impairment losses | 31,436 | — | — | 31,436 | — | |||||||||||||||
Net gain on transfer to Fifth Avenue and Times Square JV, net of $11,945 attributable to noncontrolling interests | (2,559,154 | ) | — | — | (2,559,154 | ) | — | |||||||||||||
Net gain from sale of UE common shares (sold on March 4, 2019) | — | — | (62,395 | ) | (62,395 | ) | — | |||||||||||||
(Increase) decrease in fair value of marketable securities: | ||||||||||||||||||||
PREIT | (1,313 | ) | — | 15,649 | 14,336 | — | ||||||||||||||
Lexington (sold on March 1, 2019) | — | (15,883 | ) | (16,068 | ) | (16,068 | ) | 16,992 | ||||||||||||
Other | 1 | (1 | ) | (42 | ) | (41 | ) | 110 | ||||||||||||
Proportionate share of adjustments to equity in net income (loss) of partially owned entities to arrive at FFO: | ||||||||||||||||||||
Depreciation and amortization of real property | 34,631 | 25,488 | 24,990 | 59,621 | 53,594 | |||||||||||||||
Net gains on sale of real estate | — | (272 | ) | — | — | (577 | ) | |||||||||||||
Decrease (increase) in fair value of marketable securities | 1,709 | (140 | ) | (12 | ) | 1,697 | 1,534 | |||||||||||||
(2,387,237 | ) | 88,614 | 70,605 | (2,316,632 | ) | 251,485 | ||||||||||||||
Noncontrolling interests' share of above adjustments | 151,357 | (5,511 | ) | (4,424 | ) | 146,933 | (15,557 | ) | ||||||||||||
FFO adjustments, net | (B) | $ | (2,235,880 | ) | $ | 83,103 | $ | 66,181 | $ | (2,169,699 | ) | $ | 235,928 | |||||||
FFO attributable to common shareholders (non-GAAP) | (A+B) | $ | 164,315 | $ | 194,637 | $ | 247,669 | $ | 411,984 | $ | 329,621 | |||||||||
Convertible preferred share dividends | 14 | 16 | 15 | 29 | 32 | |||||||||||||||
FFO attributable to common shareholders plus assumed conversions (non-GAAP) | 164,329 | 194,653 | 247,684 | 412,013 | 329,653 | |||||||||||||||
Add back of FFO allocated to noncontrolling interests of the Operating Partnership | 10,684 | 12,408 | 16,013 | 26,669 | 21,030 | |||||||||||||||
FFO - OP Basis (non-GAAP) | $ | 175,013 | $ | 207,061 | $ | 263,697 | $ | 438,682 | $ | 350,683 | ||||||||||
FFO per diluted share (non-GAAP) | $ | 0.86 | $ | 1.02 | $ | 1.30 | $ | 2.16 | $ | 1.72 |
NON-GAAP RECONCILIATIONS RECONCILIATION OF FFO ATTRIBUTABLE TO COMMON SHAREHOLDERS PLUS ASSUMED CONVERSIONS TO FFO ATTRIBUTABLE TO COMMON SHAREHOLDERS PLUS ASSUMED CONVERSIONS, AS ADJUSTED (unaudited) | ||||||||||||||||||||
(Amounts in thousands, except per share amounts) | ||||||||||||||||||||
For the Three Months Ended | For the Six Months Ended June 30, | |||||||||||||||||||
June 30, | March 31, 2019 | |||||||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||||||
FFO attributable to common shareholders plus assumed conversions (non-GAAP) | (A) | $ | 164,329 | $ | 194,653 | $ | 247,684 | $ | 412,013 | $ | 329,653 | |||||||||
Per diluted share (non-GAAP) | $ | 0.86 | $ | 1.02 | $ | 1.30 | $ | 2.16 | $ | 1.72 | ||||||||||
Certain (income) expense items that impact FFO attributable to common shareholders plus assumed conversions: | ||||||||||||||||||||
After-tax net gain on sale of 220 Central Park South condominium units | $ | (88,921 | ) | $ | — | $ | (130,954 | ) | $ | (219,875 | ) | $ | — | |||||||
Non-cash impairment loss and related write-offs on 608 Fifth Avenue | 77,156 | — | — | 77,156 | — | |||||||||||||||
Our share of loss (income) from real estate fund investments | 20,758 | (551 | ) | 2,904 | 23,662 | (1,365 | ) | |||||||||||||
Profit participation on the April 2018 sale of 701 Seventh Avenue | — | (5,457 | ) | — | — | (5,457 | ) | |||||||||||||
Our share of FFO from 666 Fifth Avenue Office Condominium (49.5% interest) | — | (2,178 | ) | — | — | (2,041 | ) | |||||||||||||
Previously capitalized internal leasing costs(1) | — | (1,358 | ) | — | — | (2,706 | ) | |||||||||||||
Prepayment penalty in connection with redemption of $400 million 5.00% senior unsecured notes due January 2022 | — | — | 22,540 | 22,540 | — | |||||||||||||||
Our share of disputed additional New York City transfer taxes | — | — | — | — | 23,503 | |||||||||||||||
Preferred share issuance costs | — | — | — | — | 14,486 | |||||||||||||||
Other | 1,092 | 749 | 1,206 | 2,298 | 5,033 | |||||||||||||||
10,085 | (8,795 | ) | (104,304 | ) | (94,219 | ) | 31,453 | |||||||||||||
Noncontrolling interests' share of above adjustments | (639 | ) | 547 | 6,559 | 5,996 | (1,830 | ) | |||||||||||||
Total of certain expense (income) items that impact FFO attributable to common shareholders plus assumed conversions, net | (B) | $ | 9,446 | $ | (8,248 | ) | $ | (97,745 | ) | $ | (88,223 | ) | $ | 29,623 | ||||||
Per diluted share (non-GAAP) | $ | 0.05 | $ | (0.04 | ) | $ | (0.51 | ) | $ | (0.46 | ) | $ | 0.16 | |||||||
FFO attributable to common shareholders plus assumed conversions, as adjusted (non-GAAP) | (A+B) | $ | 173,775 | $ | 186,405 | $ | 149,939 | $ | 323,790 | $ | 359,276 | |||||||||
Per diluted share (non-GAAP) | $ | 0.91 | $ | 0.98 | $ | 0.79 | $ | 1.70 | $ | 1.88 |
(1) | "FFO, as adjusted" for the three and six months ended June 30, 2018 have been reduced by $1,358 and $2,706, or $0.01 and $0.01 per diluted share, respectively for previously capitalized internal leasing costs to present 2018 “as adjusted” financial results on a comparable basis with the current year as a result of the January 1, 2019 adoption of a new GAAP accounting standard under which internal leasing costs can no longer be capitalized. |
NON-GAAP RECONCILIATIONS RECONCILIATION OF FFO ATTRIBUTABLE TO COMMON SHAREHOLDERS PLUS ASSUMED CONVERSIONS TO FAD (unaudited) | ||||||||||||||||||||
(Amounts in thousands) | ||||||||||||||||||||
For the Three Months Ended | For the Six Months Ended June 30, | |||||||||||||||||||
June 30, | March 31, 2019 | |||||||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||||||
FFO attributable to common shareholders plus assumed conversions (non-GAAP) | (A) | $ | 164,329 | $ | 194,653 | $ | 247,684 | $ | 412,013 | $ | 329,653 | |||||||||
Adjustments to arrive at FAD (non-GAAP): | ||||||||||||||||||||
Recurring tenant improvements, leasing commissions and other capital expenditures | (61,568 | ) | (68,065 | ) | (40,978 | ) | (102,546 | ) | (116,610 | ) | ||||||||||
Adjustments to FFO excluding FFO attributable to discontinued operations and sold properties | 10,145 | (6,357 | ) | (104,441 | ) | (94,296 | ) | 33,227 | ||||||||||||
Amortization of acquired below-market leases, net | (4,504 | ) | (10,089 | ) | (6,088 | ) | (10,592 | ) | (20,233 | ) | ||||||||||
Amortization of debt issuance costs | 6,236 | 8,034 | 7,547 | 13,783 | 16,138 | |||||||||||||||
Stock-based compensation expense | 10,520 | 6,975 | 31,654 | 42,174 | 20,644 | |||||||||||||||
Straight-line rentals | 2,593 | (2,692 | ) | 1,140 | 3,733 | (10,122 | ) | |||||||||||||
Non real estate depreciation | 1,571 | 1,464 | 1,513 | 3,084 | 3,099 | |||||||||||||||
Noncontrolling interests' share of above adjustments | 2,219 | 4,495 | 6,886 | 9,171 | 4,601 | |||||||||||||||
FAD adjustments, net | (B) | (32,788 | ) | (66,235 | ) | (102,767 | ) | (135,489 | ) | (69,256 | ) | |||||||||
FAD (non-GAAP) | (A+B) | $ | 131,541 | $ | 128,418 | $ | 144,917 | $ | 276,524 | $ | 260,397 | |||||||||
FAD payout ratio (1) | 95.7 | % | 94.0 | % | 86.8 | % | 91.0 | % | 92.6 | % |
(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. |
NON-GAAP RECONCILIATIONS RECONCILIATION OF NET INCOME TO NET OPERATING INCOME AT SHARE AND NET OPERATING INCOME AT SHARE - CASH BASIS (unaudited) | |||||||||||||||||||
(Amounts in thousands) |
For the Three Months Ended | For the Six Months Ended June 30, | ||||||||||||||||||
June 30, | March 31, 2019 | ||||||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||||||
Net income | $ | 2,596,693 | $ | 105,338 | $ | 213,044 | $ | 2,809,737 | $ | 105,620 | |||||||||
Deduct: | |||||||||||||||||||
Net gain on transfer to Fifth Avenue and Times Square JV | (2,571,099 | ) | — | — | (2,571,099 | ) | — | ||||||||||||
(Income) loss from partially owned entities | (22,873 | ) | (8,757 | ) | (7,320 | ) | (30,193 | ) | 1,147 | ||||||||||
Interest and other investment income, net | (7,840 | ) | (30,892 | ) | (5,045 | ) | (12,885 | ) | (6,508 | ) | |||||||||
Net gains on disposition of wholly owned and partially owned assets | (111,713 | ) | (23,559 | ) | (220,294 | ) | (332,007 | ) | (23,559 | ) | |||||||||
NOI attributable to noncontrolling interests in consolidated subsidiaries | (16,416 | ) | (17,160 | ) | (17,403 | ) | (33,819 | ) | (34,472 | ) | |||||||||
(Income) loss from discontinued operations | (60 | ) | (683 | ) | 137 | 77 | (320 | ) | |||||||||||
Add: | |||||||||||||||||||
Loss from real estate fund investments | 15,803 | 28,976 | 167 | 15,970 | 37,783 | ||||||||||||||
Depreciation and amortization expense | 113,035 | 111,846 | 116,709 | 229,744 | 220,532 | ||||||||||||||
General and administrative expense | 38,872 | 34,427 | 58,020 | 96,892 | 76,960 | ||||||||||||||
Transaction related costs, impairment losses and other | 101,590 | 1,017 | 149 | 101,739 | 14,173 | ||||||||||||||
NOI from partially owned entities | 82,974 | 65,752 | 67,402 | 150,376 | 133,265 | ||||||||||||||
Interest and debt expense | 63,029 | 87,657 | 102,463 | 165,492 | 175,823 | ||||||||||||||
Income tax expense | 26,914 | 467 | 29,743 | 56,657 | 3,021 | ||||||||||||||
NOI at share | 308,909 | 354,429 | 337,772 | 646,681 | 703,465 | ||||||||||||||
Non-cash adjustments for straight-line rents, amortization of acquired below-market leases, net and other | 9,748 | (12,481 | ) | (5,181 | ) | 4,567 | (30,429 | ) | |||||||||||
NOI at share - cash basis | $ | 318,657 | $ | 341,948 | $ | 332,591 | $ | 651,248 | $ | 673,036 |
NON-GAAP RECONCILIATIONS COMPONENTS OF NET OPERATING INCOME AT SHARE AND NET OPERATING INCOME AT SHARE - CASH BASIS (unaudited) | |||||||||||||||||||
(Amounts in thousands) |
For the Three Months Ended June 30, | |||||||||||||||||||||||||||||||||||||||
Total Revenues | Operating Expenses | NOI | Non-cash Adjustments(1) | NOI - cash basis | |||||||||||||||||||||||||||||||||||
2019 | 2018 | 2019 | 2018 | 2019 | 2018 | 2019 | 2018 | 2019 | 2018 | ||||||||||||||||||||||||||||||
New York | $ | 376,381 | $ | 458,552 | $ | 187,819 | $ | 200,903 | $ | 188,562 | $ | 257,649 | $ | 13,308 | $ | (10,533 | ) | $ | 201,870 | $ | 247,116 | ||||||||||||||||||
Other | 86,722 | 83,266 | 32,933 | 35,078 | 53,789 | 48,188 | 1,492 | 487 | 55,281 | 48,675 | |||||||||||||||||||||||||||||
Consolidated total | 463,103 | 541,818 | 220,752 | 235,981 | 242,351 | 305,837 | 14,800 | (10,046 | ) | 257,151 | 295,791 | ||||||||||||||||||||||||||||
Noncontrolling interests' share in consolidated subsidiaries | (26,334 | ) | (27,093 | ) | (9,918 | ) | (9,933 | ) | (16,416 | ) | (17,160 | ) | 218 | 150 | (16,198 | ) | (17,010 | ) | |||||||||||||||||||||
Our share of partially owned entities | 124,214 | 112,196 | 41,240 | 46,444 | 82,974 | 65,752 | (5,270 | ) | (2,585 | ) | 77,704 | 63,167 | |||||||||||||||||||||||||||
Vornado's share | $ | 560,983 | $ | 626,921 | $ | 252,074 | $ | 272,492 | $ | 308,909 | $ | 354,429 | $ | 9,748 | $ | (12,481 | ) | $ | 318,657 | $ | 341,948 |
For the Three Months Ended March 31, 2019 | |||||||||||||||||||
Total Revenues | Operating Expenses | NOI | Non-cash Adjustments(1) | NOI - cash basis | |||||||||||||||
New York | $ | 443,285 | $ | 198,095 | $ | 245,190 | $ | (5,083 | ) | $ | 240,107 | ||||||||
Other | 91,383 | 48,800 | 42,583 | 1,907 | 44,490 | ||||||||||||||
Consolidated total | 534,668 | 246,895 | 287,773 | (3,176 | ) | 284,597 | |||||||||||||
Noncontrolling interests' share in consolidated subsidiaries | (28,232 | ) | (10,829 | ) | (17,403 | ) | (60 | ) | (17,463 | ) | |||||||||
Our share of partially owned entities | 107,515 | 40,113 | 67,402 | (1,945 | ) | 65,457 | |||||||||||||
Vornado's share | $ | 613,951 | $ | 276,179 | $ | 337,772 | $ | (5,181 | ) | $ | 332,591 |
For the Six Months Ended June 30, | |||||||||||||||||||||||||||||||||||||||
Total Revenues | Operating Expenses | NOI | Non-cash Adjustments(1) | NOI - cash basis | |||||||||||||||||||||||||||||||||||
2019 | 2018 | 2019 | 2018 | 2019 | 2018 | 2019 | 2018 | 2019 | 2018 | ||||||||||||||||||||||||||||||
New York | $ | 819,666 | $ | 907,036 | $ | 385,914 | $ | 398,819 | $ | 433,752 | $ | 508,217 | $ | 8,225 | $ | (25,700 | ) | $ | 441,977 | $ | 482,517 | ||||||||||||||||||
Other | 178,105 | 171,219 | 81,733 | 74,764 | 96,372 | 96,455 | 3,399 | (178 | ) | 99,771 | 96,277 | ||||||||||||||||||||||||||||
Consolidated total | 997,771 | 1,078,255 | 467,647 | 473,583 | 530,124 | 604,672 | 11,624 | (25,878 | ) | 541,748 | 578,794 | ||||||||||||||||||||||||||||
Noncontrolling interests' share in consolidated subsidiaries | (54,566 | ) | (54,143 | ) | (20,747 | ) | (19,671 | ) | (33,819 | ) | (34,472 | ) | 158 | 694 | (33,661 | ) | (33,778 | ) | |||||||||||||||||||||
Our share of partially owned entities | 231,729 | 222,496 | 81,353 | 89,231 | 150,376 | 133,265 | (7,215 | ) | (5,245 | ) | 143,161 | 128,020 | |||||||||||||||||||||||||||
Vornado's share | $ | 1,174,934 | $ | 1,246,608 | $ | 528,253 | $ | 543,143 | $ | 646,681 | $ | 703,465 | $ | 4,567 | $ | (30,429 | ) | $ | 651,248 | $ | 673,036 |
(1) | Includes adjustments for straight-line rents, amortization of acquired below-market leases, net and other. |
NON-GAAP RECONCILIATIONS | |||||||||||||||||||
RECONCILIATION OF NOI AT SHARE TO SAME STORE NOI AT SHARE FOR THE THREE MONTHS ENDED JUNE 30, 2019 COMPARED TO JUNE 30, 2018 (unaudited) | |||||||||||||||||||
(Amounts in thousands) | |||||||||||||||||||
Total | New York | theMART | 555 California Street | Other | |||||||||||||||
NOI at share for the three months ended June 30, 2019 | $ | 308,909 | $ | 257,702 | $ | 30,974 | $ | 15,358 | $ | 4,875 | |||||||||
Less NOI at share from: | |||||||||||||||||||
Acquisitions | 8 | 8 | — | — | — | ||||||||||||||
Change in ownership interests in properties contributed to Fifth Avenue and Times Square JV | (5,479 | ) | (5,479 | ) | — | — | — | ||||||||||||
Dispositions | (50 | ) | (50 | ) | — | — | — | ||||||||||||
Development properties | (11,392 | ) | (11,392 | ) | — | — | — | ||||||||||||
Lease termination income, net of write-offs of straight-line receivables and acquired below-market leases, net | 2,979 | 2,979 | — | — | — | ||||||||||||||
Other non-same store expense (income), net | 85 | 4,984 | (98 | ) | 74 | (4,875 | ) | ||||||||||||
Same store NOI at share for the three months ended June 30, 2019 | $ | 295,060 | $ | 248,752 | $ | 30,876 | $ | 15,432 | $ | — | |||||||||
NOI at share for the three months ended June 30, 2018 | $ | 354,429 | $ | 295,867 | $ | 27,816 | $ | 13,660 | $ | 17,086 | |||||||||
Less NOI at share from: | |||||||||||||||||||
Acquisitions | (3 | ) | (3 | ) | — | — | — | ||||||||||||
Change in ownership interests in properties contributed to Fifth Avenue and Times Square JV | (26,365 | ) | (26,365 | ) | — | — | — | ||||||||||||
Dispositions | (309 | ) | (309 | ) | — | — | — | ||||||||||||
Development properties | (16,451 | ) | (16,451 | ) | — | — | — | ||||||||||||
Lease termination income, net of write-offs of straight-line receivables and acquired below-market leases, net | 1,984 | 1,984 | — | — | — | ||||||||||||||
Other non-same store income, net | (21,689 | ) | (4,323 | ) | (280 | ) | — | (17,086 | ) | ||||||||||
Same store NOI at share for the three months ended June 30, 2018 | $ | 291,596 | $ | 250,400 | $ | 27,536 | $ | 13,660 | $ | — | |||||||||
Increase (decrease) in same store NOI at share for the three months ended June 30, 2019 compared to June 30, 2018 | $ | 3,464 | $ | (1,648 | ) | $ | 3,340 | $ | 1,772 | $ | — | ||||||||
% increase (decrease) in same store NOI at share | 1.2 | % | (0.7 | )% | (1) | 12.1 | % | 13.0 | % | — | % |
(1) | Excluding Hotel Pennsylvania, same store NOI at share was flat. |
NON-GAAP RECONCILIATIONS | |||||||||||||||||||
RECONCILIATION OF NOI AT SHARE TO SAME STORE NOI AT SHARE FOR THE SIX MONTHS ENDED JUNE 30, 2019 COMPARED TO JUNE 30, 2018 (unaudited) | |||||||||||||||||||
(Amounts in thousands) | |||||||||||||||||||
Total | New York | theMART | 555 California Street | Other | |||||||||||||||
NOI at share for the six months ended June 30, 2019 | $ | 646,681 | $ | 541,060 | $ | 54,497 | $ | 29,859 | $ | 21,265 | |||||||||
Less NOI at share from: | |||||||||||||||||||
Acquisitions | (219 | ) | (219 | ) | — | — | — | ||||||||||||
Change in ownership interests in properties contributed to Fifth Avenue and Times Square JV | (5,479 | ) | (5,479 | ) | — | — | — | ||||||||||||
Dispositions | (47 | ) | (47 | ) | — | — | — | ||||||||||||
Development properties | (23,101 | ) | (23,101 | ) | — | — | — | ||||||||||||
Lease termination income, net of write-offs of straight-line receivables and acquired below-market leases, net | 4,881 | 4,881 | — | — | — | ||||||||||||||
Other non-same store (income) expense, net | (18,697 | ) | 4,424 | (1,930 | ) | 74 | (21,265 | ) | |||||||||||
Same store NOI at share for the six months ended June 30, 2019 | $ | 604,019 | $ | 521,519 | $ | 52,567 | $ | 29,933 | $ | — | |||||||||
NOI at share for the six months ended June 30, 2018 | $ | 703,465 | $ | 584,463 | $ | 54,691 | $ | 27,171 | $ | 37,140 | |||||||||
Less NOI at share from: | |||||||||||||||||||
Acquisitions | (124 | ) | (124 | ) | — | — | — | ||||||||||||
Change in ownership interests in properties contributed to Fifth Avenue and Times Square JV | (26,365 | ) | (26,365 | ) | — | — | — | ||||||||||||
Dispositions | (371 | ) | (371 | ) | — | — | — | ||||||||||||
Development properties | (30,138 | ) | (30,138 | ) | — | — | — | ||||||||||||
Lease termination income, net of write-offs of straight-line receivables and acquired below-market leases, net | 857 | 857 | — | — | — | ||||||||||||||
Other non-same store income, net | (46,492 | ) | (4,873 | ) | (4,479 | ) | — | (37,140 | ) | ||||||||||
Same store NOI at share for the six months ended June 30, 2018 | $ | 600,832 | $ | 523,449 | $ | 50,212 | $ | 27,171 | $ | — | |||||||||
Increase (decrease) in same store NOI at share for the six months ended June 30, 2019 compared to June 30, 2018 | $ | 3,187 | $ | (1,930 | ) | $ | 2,355 | $ | 2,762 | $ | — | ||||||||
% increase (decrease) in same store NOI at share | 0.5 | % | (0.4 | )% | (1) | 4.7 | % | 10.2 | % | — | % |
(1) | Excluding Hotel Pennsylvania, same store NOI at share increased by 0.3%. |
NON-GAAP RECONCILIATIONS | |||||||||||||||||||
RECONCILIATION OF NOI AT SHARE TO SAME STORE NOI AT SHARE FOR THE THREE MONTHS ENDED JUNE 30, 2019 COMPARED TO MARCH 31, 2019 (unaudited) | |||||||||||||||||||
(Amounts in thousands) | |||||||||||||||||||
Total | New York | theMART | 555 California Street | Other | |||||||||||||||
NOI at share for the three months ended June 30, 2019 | $ | 308,909 | $ | 257,702 | $ | 30,974 | $ | 15,358 | $ | 4,875 | |||||||||
Less NOI at share from: | |||||||||||||||||||
Acquisitions | (5 | ) | (5 | ) | — | — | — | ||||||||||||
Change in ownership interests in properties contributed to Fifth Avenue and Times Square JV | (5,479 | ) | (5,479 | ) | — | — | — | ||||||||||||
Dispositions | (50 | ) | (50 | ) | — | — | — | ||||||||||||
Development properties | (11,392 | ) | (11,392 | ) | — | — | — | ||||||||||||
Lease termination income, net of write-offs of straight-line receivables and acquired below-market leases, net | 2,979 | 2,979 | — | — | — | ||||||||||||||
Other non-same store expense (income), net | 85 | 4,984 | (98 | ) | 74 | (4,875 | ) | ||||||||||||
Same store NOI at share for the three months ended June 30, 2019 | $ | 295,047 | $ | 248,739 | $ | 30,876 | $ | 15,432 | $ | — | |||||||||
NOI at share for the three months ended March 31, 2019 | $ | 337,772 | $ | 283,358 | $ | 23,523 | $ | 14,501 | $ | 16,390 | |||||||||
Less NOI at share from: | |||||||||||||||||||
Change in ownership interests in properties contributed to Fifth Avenue and Times Square JV | (30,292 | ) | (30,292 | ) | — | — | — | ||||||||||||
Dispositions | 3 | 3 | — | — | — | ||||||||||||||
Development properties | (11,460 | ) | (11,460 | ) | — | — | — | ||||||||||||
Lease termination income, net of write-offs of straight-line receivables and acquired below-market leases, net | 1,902 | 1,902 | — | — | — | ||||||||||||||
Other non-same store income, net | (22,743 | ) | (4,522 | ) | (1,831 | ) | — | (16,390 | ) | ||||||||||
Same store NOI at share for the three months ended March 31, 2019 | $ | 275,182 | $ | 238,989 | $ | 21,692 | $ | 14,501 | $ | — | |||||||||
Increase in same store NOI at share for the three months ended June 30, 2019 compared to March 31, 2019 | $ | 19,865 | $ | 9,750 | $ | 9,184 | $ | 931 | $ | — | |||||||||
% increase in same store NOI at share | 7.2 | % | 4.1 | % | (1) | 42.3 | % | 6.4 | % | — | % |
(1) | Excluding Hotel Pennsylvania, same store NOI at share was flat. |
NON-GAAP RECONCILIATIONS | |||||||||||||||||||
RECONCILIATION OF NOI AT SHARE - CASH BASIS TO SAME STORE NOI AT SHARE - CASH BASIS FOR THE THREE MONTHS ENDED JUNE 30, 2019 COMPARED TO JUNE 30, 2018 (unaudited) | |||||||||||||||||||
(Amounts in thousands) | |||||||||||||||||||
Total | New York | theMART | 555 California Street | Other | |||||||||||||||
NOI at share - cash basis for the three months ended June 30, 2019 | $ | 318,657 | $ | 266,139 | $ | 31,984 | $ | 15,595 | $ | 4,939 | |||||||||
Less NOI at share - cash basis from: | |||||||||||||||||||
Acquisitions | 8 | 8 | — | — | — | ||||||||||||||
Change in ownership interests in properties contributed to Fifth Avenue and Times Square JV | (5,183 | ) | (5,183 | ) | — | — | — | ||||||||||||
Dispositions | (50 | ) | (50 | ) | — | — | — | ||||||||||||
Development properties | (13,005 | ) | (13,005 | ) | — | — | — | ||||||||||||
Lease termination income | (1,606 | ) | (1,606 | ) | — | — | — | ||||||||||||
Other non-same store income, net | (9,740 | ) | (4,703 | ) | (98 | ) | — | (4,939 | ) | ||||||||||
Same store NOI at share - cash basis for the three months ended June 30, 2019 | $ | 289,081 | $ | 241,600 | $ | 31,886 | $ | 15,595 | $ | — | |||||||||
NOI at share - cash basis for the three months ended June 30, 2018 | $ | 341,948 | $ | 283,154 | $ | 27,999 | $ | 13,808 | $ | 16,987 | |||||||||
Less NOI at share - cash basis from: | |||||||||||||||||||
Acquisitions | (3 | ) | (3 | ) | — | — | — | ||||||||||||
Change in ownership interests in properties contributed to Fifth Avenue and Times Square JV | (24,732 | ) | (24,732 | ) | — | — | — | ||||||||||||
Dispositions | (240 | ) | (240 | ) | — | — | — | ||||||||||||
Development properties | (17,489 | ) | (17,489 | ) | — | — | — | ||||||||||||
Other non-same store income, net | (22,345 | ) | (4,960 | ) | (398 | ) | — | (16,987 | ) | ||||||||||
Same store NOI at share - cash basis for the three months ended June 30, 2018 | $ | 277,139 | $ | 235,730 | $ | 27,601 | $ | 13,808 | $ | — | |||||||||
Increase in same store NOI at share - cash basis for the three months ended June 30, 2019 compared to June 30, 2018 | $ | 11,942 | $ | 5,870 | $ | 4,285 | $ | 1,787 | $ | — | |||||||||
% increase in same store NOI at share - cash basis | 4.3 | % | 2.5 | % | (1) | 15.5 | % | 12.9 | % | — | % |
(1) | Excluding Hotel Pennsylvania, same store NOI at share - cash basis increased by 3.3%. |
NON-GAAP RECONCILIATIONS | |||||||||||||||||||
RECONCILIATION OF NOI AT SHARE - CASH BASIS TO SAME STORE NOI AT SHARE - CASH BASIS FOR THE SIX MONTHS ENDED JUNE 30, 2019 COMPARED TO JUNE 30, 2018 (unaudited) | |||||||||||||||||||
(Amounts in thousands) | |||||||||||||||||||
Total | New York | theMART | 555 California Street | Other | |||||||||||||||
NOI at share - cash basis for the six months ended June 30, 2019 | $ | 651,248 | $ | 542,879 | $ | 56,896 | $ | 30,340 | $ | 21,133 | |||||||||
Less NOI at share - cash basis from: | |||||||||||||||||||
Acquisitions | (220 | ) | (220 | ) | — | — | — | ||||||||||||
Change in ownership interests in properties contributed to Fifth Avenue and Times Square JV | (5,183 | ) | (5,183 | ) | — | — | — | ||||||||||||
Dispositions | (47 | ) | (47 | ) | — | — | — | ||||||||||||
Development properties | (27,291 | ) | (27,291 | ) | — | — | — | ||||||||||||
Lease termination income | (2,035 | ) | (2,035 | ) | — | — | — | ||||||||||||
Other non-same store income, net | (28,326 | ) | (5,264 | ) | (1,929 | ) | — | (21,133 | ) | ||||||||||
Same store NOI at share - cash basis for the six months ended June 30, 2019 | $ | 588,146 | $ | 502,839 | $ | 54,967 | $ | 30,340 | $ | — | |||||||||
NOI at share - cash basis for the six months ended June 30, 2018 | $ | 673,036 | $ | 554,427 | $ | 55,078 | $ | 26,634 | $ | 36,897 | |||||||||
Less NOI at share - cash basis from: | |||||||||||||||||||
Acquisitions | (124 | ) | (124 | ) | — | — | — | ||||||||||||
Change in ownership interests in properties contributed to Fifth Avenue and Times Square JV | (24,732 | ) | (24,732 | ) | — | — | — | ||||||||||||
Dispositions | (306 | ) | (306 | ) | — | — | — | ||||||||||||
Development properties | (32,434 | ) | (32,434 | ) | — | — | — | ||||||||||||
Lease termination income | (1,061 | ) | (1,061 | ) | — | — | — | ||||||||||||
Other non-same store income, net | (47,004 | ) | (5,509 | ) | (4,598 | ) | — | (36,897 | ) | ||||||||||
Same store NOI at share - cash basis for the six months ended June 30, 2018 | $ | 567,375 | $ | 490,261 | $ | 50,480 | $ | 26,634 | $ | — | |||||||||
Increase in same store NOI at share - cash basis for the six months ended June 30, 2019 compared to June 30, 2018 | $ | 20,771 | $ | 12,578 | $ | 4,487 | $ | 3,706 | $ | — | |||||||||
% increase in same store NOI at share - cash basis | 3.7 | % | 2.6 | % | (1) | 8.9 | % | 13.9 | % | — | % |
(1) | Excluding Hotel Pennsylvania, same store NOI at share - cash basis increased by 3.3%. |
NON-GAAP RECONCILIATIONS | |||||||||||||||||||
RECONCILIATION OF NOI AT SHARE - CASH BASIS TO SAME STORE NOI AT SHARE - CASH BASIS FOR THE THREE MONTHS ENDED JUNE 30, 2019 COMPARED TO MARCH 31, 2019 (unaudited) | |||||||||||||||||||
(Amounts in thousands) | |||||||||||||||||||
Total | New York | theMART | 555 California Street | Other | |||||||||||||||
NOI at share - cash basis for the three months ended June 30, 2019 | $ | 318,657 | $ | 266,139 | $ | 31,984 | $ | 15,595 | $ | 4,939 | |||||||||
Less NOI at share - cash basis from: | |||||||||||||||||||
Acquisitions | (5 | ) | (5 | ) | — | — | — | ||||||||||||
Change in ownership interests in properties contributed to Fifth Avenue and Times Square JV | (5,183 | ) | (5,183 | ) | — | — | — | ||||||||||||
Dispositions | (50 | ) | (50 | ) | — | — | — | ||||||||||||
Development properties | (13,005 | ) | (13,005 | ) | — | — | — | ||||||||||||
Lease termination income | (1,606 | ) | (1,606 | ) | — | — | — | ||||||||||||
Other non-same store income, net | (9,740 | ) | (4,703 | ) | (98 | ) | — | (4,939 | ) | ||||||||||
Same store NOI at share - cash basis for the three months ended June 30, 2019 | $ | 289,068 | $ | 241,587 | $ | 31,886 | $ | 15,595 | $ | — | |||||||||
NOI at share - cash basis for the three months ended March 31, 2019 | $ | 332,591 | $ | 276,740 | $ | 24,912 | $ | 14,745 | $ | 16,194 | |||||||||
Less NOI at share - cash basis from: | |||||||||||||||||||
Change in ownership interests in properties contributed to Fifth Avenue and Times Square JV | (27,722 | ) | (27,722 | ) | — | — | — | ||||||||||||
Dispositions | 2 | 2 | — | — | — | ||||||||||||||
Development properties | (14,184 | ) | (14,184 | ) | — | — | — | ||||||||||||
Lease termination income | (429 | ) | (429 | ) | — | — | — | ||||||||||||
Other non-same store income, net | (23,406 | ) | (5,381 | ) | (1,831 | ) | — | (16,194 | ) | ||||||||||
Same store NOI at share - cash basis for the three months ended March 31, 2019 | $ | 266,852 | $ | 229,026 | $ | 23,081 | $ | 14,745 | $ | — | |||||||||
Increase in same store NOI at share - cash basis for the three months ended June 30, 2019 compared to March 31, 2019 | $ | 22,216 | $ | 12,561 | $ | 8,805 | $ | 850 | $ | — | |||||||||
% increase in same store NOI at share - cash basis | 8.3 | % | 5.5 | % | (1) | 38.1 | % | 5.8 | % | — | % |
(1) | Excluding Hotel Pennsylvania, same store NOI at share - cash basis increased by 1.2%. |
NON-GAAP RECONCILIATIONS | |||
RECONCILIATION OF CONSOLIDATED REVENUES TO OUR PRO RATA SHARE OF REVENUES (ANNUALIZED) (unaudited) | |||
(Amounts in thousands) | |||
For the Three Months Ended June 30, 2019 | |||
Consolidated revenues | $ | 463,103 | |
Noncontrolling interest adjustments | (26,334 | ) | |
Consolidated revenues at our share (non-GAAP) | 436,769 | ||
Unconsolidated revenues at our share (non-GAAP) | 124,214 | ||
Our pro rata share of revenues (non-GAAP) | $ | 560,983 | |
Our pro rata share of revenues (annualized) (non-GAAP) | $ | 2,243,932 |
RECONCILIATION OF CONSOLIDATED DEBT, NET TO CONTRACTUAL DEBT (NON-GAAP) (unaudited) | |||||||||||
(Amounts in thousands) | |||||||||||
As of June 30, 2019 | |||||||||||
Consolidated Debt, net | Deferred Financing Costs, Net and Other | Contractual Debt (non-GAAP) | |||||||||
Mortgages payable | $ | 6,256,808 | $ | 34,837 | $ | 6,291,645 | |||||
Senior unsecured notes | 445,465 | 4,535 | 450,000 | ||||||||
$750 Million unsecured term loan | 745,331 | 4,669 | 750,000 | ||||||||
$2.75 Billion unsecured revolving credit facilities | 80,000 | — | 80,000 | ||||||||
$ | 7,527,604 | $ | 44,041 | $ | 7,571,645 |
NON-GAAP RECONCILIATIONS RECONCILIATION OF NET INCOME TO EBITDAre (unaudited) | ||||||
(Amounts in thousands) |
For the Three Months Ended | For the Six Months Ended June 30, | ||||||||||||||||||
June 30, | March 31, 2019 | ||||||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||||||
Reconciliation of net income to EBITDAre (non-GAAP): | |||||||||||||||||||
Net income | $ | 2,596,693 | $ | 105,338 | $ | 213,044 | $ | 2,809,737 | $ | 105,620 | |||||||||
Less net (income) loss attributable to noncontrolling interests in consolidated subsidiaries | (21,451 | ) | 26,175 | (6,820 | ) | (28,271 | ) | 34,449 | |||||||||||
Net income attributable to the Operating Partnership | 2,575,242 | 131,513 | 206,224 | 2,781,466 | 140,069 | ||||||||||||||
EBITDAre adjustments at share: | |||||||||||||||||||
Net gain on transfer to Fifth Avenue and Times Square JV, net of $11,945 attributable to noncontrolling interests | (2,559,154 | ) | — | — | (2,559,154 | ) | — | ||||||||||||
Depreciation and amortization expense | 141,655 | 130,551 | 134,986 | 276,641 | 260,759 | ||||||||||||||
Interest and debt expense | 87,987 | 112,874 | 128,068 | 216,055 | 229,106 | ||||||||||||||
Income tax expense | 27,006 | 573 | 29,924 | 56,930 | 3,134 | ||||||||||||||
Net gains on sale of depreciable real estate | — | (24,449 | ) | — | — | (24,754 | ) | ||||||||||||
Real estate impairment losses | 31,436 | — | — | 31,436 | — | ||||||||||||||
EBITDAre at share | 304,172 | 351,062 | 499,202 | 803,374 | 608,314 | ||||||||||||||
EBITDAre attributable to noncontrolling interests in consolidated subsidiaries | 20,563 | (13,431 | ) | 19,809 | 40,372 | (9,113 | ) | ||||||||||||
EBITDAre (non-GAAP) | $ | 324,735 | $ | 337,631 | $ | 519,011 | $ | 843,746 | $ | 599,201 |
NON-GAAP RECONCILIATIONS RECONCILIATION OF EBITDAre TO EBITDAre, AS ADJUSTED (unaudited) | |||||||||||||||||||
(Amounts in thousands) | |||||||||||||||||||
For the Three Months Ended | For the Six Months Ended June 30, | ||||||||||||||||||
June 30, | March 31, 2019 | ||||||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||||||
EBITDAre (non-GAAP) | $ | 324,735 | $ | 337,631 | $ | 519,011 | $ | 843,746 | $ | 599,201 | |||||||||
EBITDAre attributable to noncontrolling interests in consolidated subsidiaries | (20,563 | ) | 13,431 | (19,809 | ) | (40,372 | ) | 9,113 | |||||||||||
Certain (income) expense items that impact EBITDAre: | |||||||||||||||||||
Gain on sale of 220 CPS condominium units | (111,713 | ) | — | (157,899 | ) | (269,612 | ) | — | |||||||||||
Non-cash impairment loss and related write-offs on 608 Fifth Avenue | 77,156 | — | — | 77,156 | — | ||||||||||||||
Our share of loss (income) from real estate fund investments | 20,758 | (551 | ) | 2,904 | 23,662 | (1,365 | ) | ||||||||||||
Mark-to-market (increase) decrease in PREIT common shares (accounted for as a marketable security from March 12, 2019) | (1,313 | ) | — | 15,649 | 14,336 | — | |||||||||||||
Net gain from sale of UE common shares (sold on March 4, 2019) | — | — | (62,395 | ) | (62,395 | ) | — | ||||||||||||
Mark-to-market (increase) decrease in Lexington common shares (sold on March 1, 2019) | — | (15,883 | ) | (16,068 | ) | (16,068 | ) | 16,992 | |||||||||||
Previously capitalized internal leasing costs(1) | — | (1,358 | ) | — | — | (2,706 | ) | ||||||||||||
Our share of disputed additional New York City transfer taxes | — | — | — | — | 23,503 | ||||||||||||||
Other | 2,802 | (11,672 | ) | 23 | 2,825 | (14,982 | ) | ||||||||||||
Total of certain (income) expense items that impact EBITDAre | (12,310 | ) | (29,464 | ) | (217,786 | ) | (230,096 | ) | 21,442 | ||||||||||
EBITDAre, as adjusted (non-GAAP) | $ | 291,862 | $ | 321,598 | $ | 281,416 | $ | 573,278 | $ | 629,756 |
(1) | "EBITDAre, as adjusted" for the three and six months ended June 30, 2018 have been reduced by $1,358 and $2,706, respectively for previously capitalized internal leasing costs to present 2018 “as adjusted” financial results on a comparable basis with the current year as a result of the January 1, 2019 adoption of a new GAAP accounting standard under which internal leasing costs can no longer be capitalized. |