Document
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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
 
FORM 8-K
 
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
 
Date of Report (Date of earliest event reported):
February 18, 2020
 
VORNADO REALTY TRUST
(Exact Name of Registrant as Specified in Charter)
Maryland
 
No.
001-11954
 
No.
22-1657560
(State or Other
 
(Commission
 
(IRS Employer
Jurisdiction of Incorporation)
 
File Number)
 
Identification No.)
VORNADO REALTY L.P.
(Exact Name of Registrant as Specified in Charter)
Delaware
 
No.
001-34482
 
No.
13-3925979
(State or Other
 
(Commission
 
(IRS Employer
Jurisdiction of Incorporation)
 
File Number)
 
Identification No.)
 
888 Seventh Avenue
 

 New York,
New York
 
10019
(Address of Principal Executive offices)
 
(Zip Code)
 
Registrant’s telephone number, including area code: (212) 894-7000
Former name or former address, if changed since last report: N/A
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instructions A.2.):
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))
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o 
Securities registered pursuant to Section 12(b) of the Act:
Registrant
 
Title of each class
 
Trading Symbol(s)
 
Name of each exchange on which registered
Vornado Realty Trust
 
Common Shares of beneficial interest, $.04 par value per share
 
VNO
 
New York Stock Exchange
 
 
Cumulative Redeemable Preferred Shares of beneficial interest, liquidation preference $25.00 per share:
 
 
 
 
Vornado Realty Trust
 
5.70% Series K
 
VNO/PK
 
New York Stock Exchange
Vornado Realty Trust
 
5.40% Series L
 
VNO/PL
 
New York Stock Exchange
Vornado Realty Trust
 
5.25% Series M
 
VNO/PM
 
New York Stock Exchange
 




Item 2.02. Results of Operations and Financial Condition.
On February 18, 2020, Vornado Realty Trust (the “Company”), the general partner of Vornado Realty L.P., issued a press release announcing its financial results for the fourth quarter of 2019.  That press release referred to certain supplemental financial information that is available on the Company’s website.  That press release and the supplemental financial information are attached to this Current Report on Form 8-K as Exhibits 99.1 and 99.2, respectively, and are incorporated by reference herein.
Exhibits 99.1 and 99.2 hereto shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the Exchange Act), or otherwise subject to the liabilities under that Section and shall not be deemed to be incorporated by reference into any filing of the Company or Vornado Realty L.P. under the Securities Act of 1933, as amended, or the Exchange Act.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits.
The following exhibits are being furnished as part of this Current Report on Form 8-K:
 
 
Vornado Realty Trust Press Release Dated February 18, 2020
 
 
Vornado Realty Trust supplemental operating and financial data for the quarter and year ended December 31, 2019



2



SIGNATURE 
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 
VORNADO REALTY TRUST
 
(Registrant)
 
 
 
 
By:
/s/ Matthew Iocco
 
Name:
Matthew Iocco
 
Title:
Chief Accounting Officer (duly authorized
officer and principal accounting officer)
Date: February 19, 2020
 
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 
VORNADO REALTY L.P.
 
(Registrant)
 
By:
VORNADO REALTY TRUST,
 
 
Sole General Partner
 
 
 
 
By:
/s/ Matthew Iocco
 
Name:
Matthew Iocco
 
Title:
Chief Accounting Officer of Vornado
Realty Trust, sole General Partner of Vornado Realty
L.P. (duly authorized officer and principal accounting
officer)

Date: February 19, 2020


3

Exhibit
EXHIBIT 99.1


https://cdn.kscope.io/6b76d8e44602142e0060a4e1928a397d-vnortlogoblack2a23.jpg

Vornado Announces Fourth Quarter 2019 Financial Results

February 18, 2020 04:30 PM Eastern Standard Time

NEW YORK.......VORNADO REALTY TRUST (NYSE: VNO) reported today:

Quarter Ended December 31, 2019 Financial Results
NET INCOME attributable to common shareholders for the quarter ended December 31, 2019 was $193,217,000, or $1.01 per diluted share, compared to $100,494,000, or $0.53 per diluted share, for the prior year's quarter. Adjusting for the items that impact period-to-period comparability listed in the table on the following page, net income attributable to common shareholders, as adjusted (non-GAAP) for the quarters ended December 31, 2019 and 2018 was $56,381,000 and $49,436,000, or $0.29 and $0.26 per diluted share, respectively.
FUNDS FROM OPERATIONS ("FFO") attributable to common shareholders plus assumed conversions (non-GAAP) for the quarter ended December 31, 2019 was $311,876,000, or $1.63 per diluted share, compared to $210,100,000, or $1.10 per diluted share, for the prior year's quarter.  Adjusting for the items that impact period-to-period comparability listed in the table on page 3, FFO attributable to common shareholders plus assumed conversions, as adjusted (non-GAAP) for the quarters ended December 31, 2019 and 2018 was $171,030,000 and $169,874,000, or $0.89 and $0.89 per diluted share, respectively.
Year Ended December 31, 2019 Financial Results
NET INCOME attributable to common shareholders for the year ended December 31, 2019 was $3.098 billion, or $16.21 per diluted share, compared to $384,832,000, or $2.01 per diluted share, for the year ended December 31, 2018. Adjusting for the items that impact period-to-period comparability listed in the table on the following page, net income attributable to common shareholders, as adjusted (non-GAAP) for the years ended December 31, 2019 and 2018 was $176,716,000 and $238,700,000, or $0.92 and $1.25 per diluted share, respectively.
FFO attributable to common shareholders plus assumed conversions (non-GAAP) for the year ended December 31, 2019 was $1.003 billion, or $5.25 per diluted share, compared to $729,740,000, or $3.82 per diluted share, for the year ended December 31, 2018. Adjusting for the items that impact period-to-period comparability listed in the table on page 3, FFO attributable to common shareholders plus assumed conversions, as adjusted (non-GAAP) for the years ended December 31, 2019 and 2018 was $666,207,000 and $713,488,000, or $3.49 and $3.73 per diluted share, respectively.
The decreases in "net income attributable to common shareholders, as adjusted" and "FFO attributable to common shareholders plus assumed conversions, as adjusted" were partially due to (i) $10,447,000, or $0.05 per diluted share, of non-cash expense for the time-based equity compensation granted in connection with the new leadership group announced in April 2019, (ii) $9,416,000 (at share), or $0.05 per diluted share, from the non-cash write-off of straight-line rent receivables, and (iii) $8,477,000, or $0.04 per share, of non-cash expense for the accelerated vesting of previously issued restricted Operating Partnership units and Vornado restricted stock due to the removal of the time-based vesting requirement for participants who have reached 65 years of age.

1


The following table reconciles our net income attributable to common shareholders to net income attributable to common shareholders, as adjusted (non-GAAP):
(Amounts in thousands, except per share amounts)
For the Three Months Ended
December 31,
 
For the Year Ended
December 31,
 
2019
 
2018
 
2019
 
2018
Net income attributable to common shareholders
$
193,217

 
$
100,494

 
$
3,097,806

 
$
384,832

Per diluted share
$
1.01

 
$
0.53

 
$
16.21

 
$
2.01

 
 
 
 
 
 
 
 
Certain (income) expense items that impact net income attributable to common shareholders:
 
 
 
 
 
 
 
After-tax net gain on sale of 220 Central Park South ("220 CPS") condominium units
$
(173,655
)
 
$
(67,336
)
 
$
(502,565
)
 
$
(67,336
)
Our share of loss from real estate fund investments
26,600

 
24,366

 
48,808

 
23,749

Mark-to-market decrease in Pennsylvania Real Estate Investment Trust ("PREIT") common shares (accounted for as a marketable security from March 12, 2019)
2,438

 

 
21,649

 

Non-cash impairment losses and related write-offs (primarily 608 Fifth Avenue in 2019)
565

 
12,000

 
109,157

 
12,000

After-tax purchase price fair value adjustment related to the increase in ownership of the Farley joint venture

 
(27,289
)
 

 
(27,289
)
Mark-to-market decrease (increase) in Lexington Realty Trust ("Lexington") common shares (sold on March 1, 2019)

 
1,662

 
(16,068
)
 
26,596

Previously capitalized internal leasing costs(1)

 
(1,655
)
 

 
(5,538
)
Net gain on transfer to Fifth Avenue and Times Square retail JV on April 18, 2019, net of $11,945 attributable to noncontrolling interests

 

 
(2,559,154
)
 

Net gains on sale of real estate (primarily our 25% interest in 330 Madison Avenue in 2019)

 

 
(178,769
)
 
(27,786
)
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

 

Net gain on sale of our ownership interests in 666 Fifth Avenue Office Condominium

 

 

 
(134,032
)
Our share of additional New York City transfer taxes

 

 

 
23,503

Preferred share issuance costs

 

 

 
14,486

Other
(2,034
)
 
3,825

 
(2,892
)
 
5,886

 
(146,086
)
 
(54,427
)
 
(3,119,689
)
 
(155,761
)
Noncontrolling interests' share of above adjustments
9,250

 
3,369

 
198,599

 
9,629

Total of certain (income) expense items that impact net income attributable to common shareholders
$
(136,836
)
 
$
(51,058
)
 
$
(2,921,090
)
 
$
(146,132
)
 
 
 
 
 
 
 
 
Net income attributable to common shareholders, as adjusted (non-GAAP)
$
56,381

 
$
49,436

 
$
176,716

 
$
238,700

Per diluted share (non-GAAP)
$
0.29

 
$
0.26

 
$
0.92

 
$
1.25

____________________________________________________________
See notes on the following page.

2


The following table reconciles our FFO attributable to common shareholders plus assumed conversions (non-GAAP) to FFO attributable to common shareholders plus assumed conversions, as adjusted (non-GAAP):
(Amounts in thousands, except per share amounts)
For the Three Months Ended
December 31,
 
For the Year Ended
December 31,
 
2019
 
2018
 
2019
 
2018
FFO attributable to common shareholders plus assumed conversions (non-GAAP)(2)
$
311,876

 
$
210,100

 
$
1,003,398

 
$
729,740

Per diluted share (non-GAAP)
$
1.63

 
$
1.10

 
$
5.25

 
$
3.82

 
 
 
 
 
 
 
 
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
$
(173,655
)
 
$
(67,336
)
 
$
(502,565
)
 
$
(67,336
)
Our share of loss from real estate fund investments
26,600

 
24,366

 
48,808

 
23,749

Previously capitalized internal leasing costs(1)

 
(1,655
)
 

 
(5,538
)
Non-cash impairment loss and related write-offs on 608 Fifth Avenue

 

 
77,156

 

Prepayment penalty in connection with redemption of $400 million 5.00% senior unsecured notes due January 2022

 

 
22,540

 

Our share of additional New York City transfer taxes

 

 

 
23,503

Preferred share issuance costs

 

 

 
14,486

Other
(3,187
)
 
1,745

 
(6,119
)
 
(6,109
)
 
(150,242
)
 
(42,880
)
 
(360,180
)
 
(17,245
)
Noncontrolling interests' share of above adjustments
9,396

 
2,654

 
22,989

 
993

Total of certain (income) expense items that impact FFO attributable to common shareholders plus assumed conversions, net
$
(140,846
)
 
$
(40,226
)
 
$
(337,191
)
 
$
(16,252
)
 
 
 
 
 
 
 
 
FFO attributable to common shareholders plus assumed conversions, as adjusted (non-GAAP)
$
171,030

 
$
169,874

 
$
666,207

 
$
713,488

Per diluted share (non-GAAP)
$
0.89

 
$
0.89

 
$
3.49

 
$
3.73

____________________________________________________________
(1)
"Net income attributable to common shareholders, as adjusted" and "FFO attributable to common shareholders plus assumed conversions, as adjusted" for the three months and year ended December 31, 2018 have been reduced by $1,655 and $5,538, or $0.01 and $0.03 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 12 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 months and years ended December 31, 2019 and 2018.

3


Dispositions:
220 CPS
During the three months ended December 31, 2019, we closed on the sale of 17 condominium units at 220 CPS for net proceeds of $565,863,000 resulting in a financial statement net gain of $203,893,000 which is included in "net gains on disposition of wholly owned and partially owned assets" on our consolidated statements of income. In connection with these sales, $30,238,000 of income tax expense was recognized on our consolidated statements of income. During the year ended December 31, 2019, we closed on the sale of 54 condominium units at 220 CPS for net proceeds of $1,605,356,000 resulting in a financial statement net gain of $604,393,000 which is included in "net gains on disposition of wholly owned and partially owned assets" on our consolidated statements of income. In connection with these sales, $101,828,000 of income tax expense was recognized on our consolidated statements of income. From inception to December 31, 2019, we closed on the sale of 65 units for aggregate net proceeds of $1,820,132,000. During the year ended December 31, 2019, we repaid the remaining $737,000,000 of the $950,000,000 220 CPS loan.
Lexington
On March 1, 2019, we sold all of our 18,468,969 common shares of Lexington, realizing net proceeds of $167,698,000. We recorded a $16,068,000 gain (mark-to-market increase), which is included in "interest and other investment income, net" on our consolidated statements of income for the year ended December 31, 2019.
UE
On March 4, 2019, we converted to common shares and sold all of our 5,717,184 partnership units of UE, realizing net proceeds of $108,512,000. The sale resulted in a net gain of $62,395,000 which is included in "net gains on disposition of wholly owned and partially owned assets" on our consolidated statements of income for the year ended December 31, 2019.
Fifth Avenue and Times Square JV
On April 18, 2019 (the “Closing Date”), we entered into a transaction agreement (the “Transaction Agreement”) with a group of institutional investors (the “Investors”). The Transaction Agreement provides for a series of transactions (collectively, the “Transaction”) pursuant to which (i) prior to the Closing Date, we contributed our interests in properties located at 640 Fifth Avenue, 655 Fifth Avenue, 666 Fifth Avenue, 689 Fifth Avenue, 697-703 Fifth Avenue, 1535 Broadway and 1540 Broadway (collectively, the “Properties”) to subsidiaries of a newly formed joint venture (“Fifth Avenue and Times Square JV”) and (ii) on the Closing Date, transferred a 48.5% common interest in Fifth Avenue and Times Square JV to the Investors. The 48.5% common interest in the joint venture represents an effective 47.2% interest in the Properties (of which 45.4% was transferred from Vornado). The Properties include approximately 489,000 square feet of retail space, 327,000 square feet of office space, signage associated with 1535 and 1540 Broadway, the parking garage at 1540 Broadway and the theater at 1535 Broadway.
We retained the remaining 51.5% common interest in Fifth Avenue and Times Square JV which represents an effective 51.0% interest in the Properties and an aggregate $1.828 billion of preferred equity interests in certain of the properties. We also provided $500,000,000 of temporary preferred equity on 640 Fifth Avenue until May 23, 2019 when mortgage financing was completed. All of the preferred equity has an annual coupon of 4.25% for the first five years, increasing to 4.75% for the next five years and thereafter at a formulaic rate. It can be redeemed under certain conditions on a tax deferred basis.
Net cash proceeds from the Transaction were $1.179 billion, after (i) deductions for the defeasance of a $390,000,000 mortgage loan on 666 Fifth Avenue and the repayment of a $140,000,000 mortgage loan on 655 Fifth Avenue, (ii) proceeds from a $500,000,000 mortgage loan on 640 Fifth Avenue, described below, (iii) approximately $23,000,000 used to purchase noncontrolling investors' interests and (iv) approximately $53,000,000 of transaction costs (including $17,000,000 of costs related to the defeasance of the 666 Fifth Avenue mortgage loan).
We continue to manage and lease the Properties. We share control with the Investors over major decisions of the joint venture, including decisions regarding leasing, operating and capital budgets, and refinancings. Accordingly, we no longer hold a controlling financial interest in the Properties which has been transferred to the joint venture. As a result, our investment in Fifth Avenue and Times Square JV is accounted for under the equity method from the date of transfer. The Transaction valued the Properties at $5.556 billion resulting in a financial statement net gain of $2.571 billion, before noncontrolling interest of $11,945,000, including the related step up in our basis of the retained portion of the assets to fair value. The net gain is included in "net gain on transfer to Fifth Avenue and Times Square JV" on our consolidated statements of income for the year ended December 31, 2019. The gain for tax purposes was approximately $735,000,000.
On May 23, 2019, we received $500,000,000 from the redemption of our temporary preferred equity in 640 Fifth Avenue. The temporary preferred equity was redeemed from the proceeds of a $500,000,000 mortgage financing that was completed on the property. The five-year loan, which is guaranteed by us, is interest-only at LIBOR plus 1.01%. The interest rate was swapped for four years to a fixed rate of 3.07%.

4


Dispositions - continued:
330 Madison Avenue
On July 11, 2019, we sold our 25% interest in 330 Madison Avenue to our joint venture partner. We received net proceeds of approximately $100,000,000 after deducting our share of the existing $500,000,000 mortgage loan resulting in a financial statement net gain of $159,292,000. The net gain is included in "net gains on disposition of wholly owned and partially owned assets" on our consolidated statements of income for the year ended December 31, 2019. The gain for tax purposes was approximately $139,000,000.
3040 M Street
On September 18, 2019, we completed the $49,750,000 sale of 3040 M Street, a 44,000 square foot retail building in Washington, DC, which resulted in a net gain of $19,477,000 which is included in “net gains on disposition of wholly owned and partially owned assets” on our consolidated statements of income for year ended December 31, 2019. The gain for tax purposes was approximately $19,000,000.
PREIT (Subsequent Event)
On January 23, 2020, we sold all of our 6,250,000 common shares of PREIT, realizing net proceeds of $28,375,000. A $4,938,000 loss (mark-to-market decrease) will be recorded in the first quarter of 2020.
Financings:
Senior Unsecured Notes
On March 1, 2019, we called for redemption all of our $400,000,000 5.00% senior unsecured notes. The notes, which were scheduled to mature in January 2022, were redeemed on April 1, 2019 at a redemption price of 105.51% of the principal amount plus accrued interest. In connection therewith, we expensed $22,540,000 relating to debt prepayment costs which is included in "interest and debt expense" on our consolidated statements of income for the year ended December 31, 2019.
Unsecured Revolving Credit
On March 26, 2019, we increased to $1.5 billion (from $1.25 billion) and extended to March 2024 (as fully extended) from February 2022 one of our two unsecured revolving credit facilities. The interest rate on the extended facility was lowered from LIBOR plus 1.00% to LIBOR plus 0.90%. The facility fee remains unchanged at 20 basis points.
Other Financings
On January 28, 2019, a joint venture in which we have a 45.1% interest, completed a $167,500,000 refinancing of 61 Ninth Avenue, a 166,000 square foot Manhattan office and retail property. The seven-year interest-only loan carries a rate of LIBOR plus 1.35% (3.07% as of December 31, 2019) and matures in January 2026. We realized net proceeds of approximately $31,000,000. The loan replaces the previous $90,000,000 construction loan that bore interest at LIBOR plus 3.05% and was scheduled to mature in December 2021.
On February 4, 2019, we completed a $95,700,000 refinancing of 435 Seventh Avenue, a 43,000 square foot Manhattan retail property. The interest-only loan carries a rate of LIBOR plus 1.30% (3.00% as of December 31, 2019) and matures in February 2024. The recourse loan replaces the previous $95,700,000 loan that bore interest at LIBOR plus 2.25% and was scheduled to mature in August 2019.
On February 12, 2019, we completed a $580,000,000 refinancing of 100 West 33rd Street, a 1.1 million square foot Manhattan property comprised of 859,000 square feet of office space and the 256,000 square foot Manhattan Mall. The interest-only loan carries a rate of LIBOR plus 1.55% (3.25% as of December 31, 2019) and matures in April 2024, with two one-year extension options. The loan replaces the previous $580,000,000 loan that bore interest at LIBOR plus 1.65% and was scheduled to mature in July 2020.
On May 24, 2019, we extended our $375,000,000 mortgage loan on 888 Seventh Avenue, a 885,000 square foot Manhattan office building, from December 2020 to December 2025. The interest rate on the new amortizing mortgage loan is LIBOR plus 1.70% (3.44% as of December 31, 2019). Pursuant to an existing swap agreement, the interest rate on the $375,000,000 mortgage loan has been swapped to 3.25% through December 2020.
On June 28, 2019, a joint venture in which we have a 55% interest, completed a $145,700,000 refinancing of 512 West 22nd Street, a 173,000 square foot Manhattan office building, of which $109,565,000 was outstanding as of December 31, 2019. The four-year interest-only loan carries a rate of LIBOR plus 2.00% (3.72% as of December 31, 2019) and matures in June 2023 with a one-year extension option. The loan replaces the previous $126,000,000 construction loan that bore interest at LIBOR plus 2.65% and was scheduled to mature in November 2019.


5


Financings - continued:
On July 25, 2019, a joint venture in which we have a 50% interest, completed a $60,000,000 refinancing of 825 Seventh Avenue, a 165,000 square foot Manhattan office building, of which $31,889,000 was outstanding as of December 31, 2019. The interest-only loan carries a rate of LIBOR plus 1.65% (3.40% as of December 31, 2019) and matures in July 2022 with a one-year extension option. The loan replaces the previous $20,500,000 loan that bore interest at LIBOR plus 1.40% and was scheduled to mature in September 2019.
On September 5, 2019, a consolidated joint venture, in which we have a 50% interest, completed a $75,000,000 refinancing of 606 Broadway, a 36,000 square foot Manhattan office and retail building, of which $67,804,000 was outstanding as of December 31, 2019. The interest-only loan carries a rate of LIBOR plus 1.80% (3.52% as of December 31, 2019) and matures in September 2024. In connection therewith, the joint venture purchased an interest rate cap that caps LIBOR at a rate of 4.00%. The loan replaces the previous $65,000,000 construction loan. The construction loan bore interest at LIBOR plus 3.00% and was scheduled to mature in May 2021.
On September 27, 2019, we repaid the $575,000,000 mortgage loan on PENN2 with proceeds from our unsecured revolving credit facilities. The mortgage loan was scheduled to mature in December 2019. PENN2 is a 1,795,000 square foot (as expanded) Manhattan office building currently under redevelopment.
On November 6, 2019, Vornado Capital Partners Real Estate Fund completed a $145,075,000 refinancing of Lucida, a 155,000 square foot Manhattan retail and residential property. The three-year interest-only loan carries a rate of LIBOR plus 1.85% (3.54% as of December 31, 2019) with two one-year extension options. The loan replaces the previous $146,000,000 loan that bore interest at LIBOR plus 1.55% and was scheduled to mature in December 2019.
On November 26, 2019, a joint venture in which we have a 20.1% interest, completed a $800,000,000 refinancing of 650 Madison Avenue, a 601,000 square foot Manhattan office and retail property. The ten-year interest-only loan carries a fixed rate of 3.49% and matures in December 2029. The loan replaces the previous $800,000,000 loan that bore interest at a fixed rate of 4.39% and was scheduled to mature in October 2020.
On December 23, 2019, a joint venture in which we have a 49.9% interest, completed a $85,500,000 refinancing, of which $82,500,000 was outstanding as of December 31, 2019, of 50-70 West 93rd Street, a 325-unit Manhattan residential complex. The five-year interest-only loan carries an interest rate of LIBOR plus 1.53%, which was swapped to a fixed rate of 3.14%, and matures in December 2024. The loan replaces the previous $80,000,000 loan that bore interest at LIBOR plus 1.70% and was scheduled to mature in August 2021, as extended.

Other:
On December 19, 2019, we paid Kmart Corporation $34,000,000, of which $10,000,000 is expected to be reimbursed, to early terminate their 141,000 square foot retail space lease at PENN1 which was scheduled to expire in January 2036.

Leasing Activity For The Three Months Ended December 31, 2019:
173,000 square feet of New York Office space (117,000 square feet at share) at an initial rent of $101.67 per square foot and a weighted average lease term of 6.6 years. The GAAP and cash mark-to-market rent on the 54,000 square feet of second generation space were negative 3.5% and 5.2%, respectively. Tenant improvements and leasing commissions were $13.53 per square foot per annum, or 13.3% of initial rent.
94,000 square feet of New York Retail space (73,000 square feet at share) at an initial rent of $233.55 per square foot and a weighted average lease term of 9.4 years. The GAAP and cash mark-to-market rent on the 52,000 square feet of second generation space were positive 0.3% and 11.3%, respectively. Tenant improvements and leasing commissions were $10.72 per square foot per annum, or 4.6% of initial rent.
52,000 square feet at theMART at an initial rent of $50.26 per square foot and a weighted average lease term of 5.0 years. The GAAP and cash mark-to-market rent on the 50,000 square feet of second generation space were positive 3.1% and negative 2.3%, respectively. Tenant improvements and leasing commissions were $5.38 per square foot per annum, or 10.7% of initial rent.
30,000 square feet at 555 California Street (21,000 square feet at share) at an initial rent of $94.00 per square foot and a weighted average lease term of 5.0 years. The GAAP and cash mark-to-market rent on the 21,000 square feet of second generation space were positive 100.5% and 72.5%, respectively. Tenant improvements and leasing commissions were $7.28 per square foot per annum, or 7.7% of initial rent.

6


Leasing Activity For The Year Ended December 31, 2019:
987,000 square feet of New York Office space (793,000 square feet at share) at an initial rent of $82.17 per square foot and a weighted average lease term of 7.7 years. The GAAP and cash mark-to-market rent on the 553,000 square feet of second generation space were positive 5.5% and 4.6%, respectively. Tenant improvements and leasing commissions were $10.89 per square foot per annum, or 13.3% of initial rent.
238,000 square feet of New York Retail space (207,000 square feet at share) at an initial rent of $175.35 per square foot and a weighted average lease term of 10.9 years. The GAAP and cash mark-to-market rent on the 171,000 square feet of second generation space were positive 12.9% and 9.8%, respectively. Tenant improvements and leasing commissions were $6.29 per square foot per annum, or 3.6% of initial rent.
286,000 square feet at theMART at an initial rent of $49.43 per square foot and a weighted average lease term of 6.1 years. The GAAP and cash mark-to-market rent on the 280,000 square feet of second generation space were positive 10.7% and 4.6%, respectively. Tenant improvements and leasing commissions were $5.55 per square foot per annum, or 11.2% of initial rent.
172,000 square feet at 555 California Street (120,000 square feet at share) at an initial rent of $88.70 per square foot and a weighted average lease term of 6.1 years. The GAAP and cash mark-to-market rent on the 115,000 square feet of second generation space were positive 64.9% and 38.1%, respectively. Tenant improvements and leasing commissions were $8.84 per square foot per annum, or 10.0% of initial rent.
Same Store Net Operating Income ("NOI") At Share:
The percentage increase (decrease) in same store NOI at share and same store NOI at share - cash basis of our New York segment, theMART and 555 California Street are summarized below.
 
 
Total
 
New York(2)
 
theMART
 
555 California Street
Same store NOI at share % increase (decrease)(1):
 
 
 
 
 
 
 
 
Three months ended December 31, 2019 compared to December 31, 2018
7.1
%
 
2.6
%
 
114.3
 %
(3) 
3.3
 %
 
Year ended December 31, 2019 compared to December 31, 2018
2.1
%
 
0.5
%
 
15.9
 %
(4) 
9.7
 %
 
Three months ended December 31, 2019 compared to September 30, 2019
1.7
%
 
3.0
%
 
(7.4
)%
 
(4.8
)%
 
 
 
 
 
 
 
 
 
Same store NOI at share - cash basis % increase (decrease)(1):
 
 
 
 
 
 
 
 
Three months ended December 31, 2019 compared to December 31, 2018
6.6
%
 
1.7
%
 
100.0
 %
(3) 
4.1
 %
 
Year ended December 31, 2019 compared to December 31, 2018
3.6
%
 
1.6
%
 
18.6
 %
(4) 
12.7
 %
 
Three months ended December 31, 2019 compared to September 30, 2019
2.6
%
 
3.9
%
 
(4.8
)%
 
(5.4
)%
____________________
(1)
See pages 14 through 19 for same store NOI at share and same store NOI at share - cash basis reconciliations.
 
 
 
 
(2)
Excluding Hotel Pennsylvania, same store NOI at share % increase:
 
 
 
Three months ended December 31, 2019 compared to December 31, 2018
2.6
%
 
 
Year ended December 31, 2019 compared to December 31, 2018
0.9
%
 
 
Three months ended December 31, 2019 compared to September 30, 2019
1.7
%
 
 
 
 
 
 
Excluding Hotel Pennsylvania, same store NOI at share - cash basis % increase:
 
 
 
Three months ended December 31, 2019 compared to December 31, 2018
1.8
%
 
 
Year ended December 31, 2019 compared to December 31, 2018
2.2
%
 
 
Three months ended December 31, 2019 compared to September 30, 2019
2.6
%
 
 
 
 
 
(3)
The three months ended December 31, 2018 includes an additional $12,814,000 real estate tax expense accrual due to an increase in the tax-assessed value of theMART.

(4)
Primarily due to $11,131,000 of tenant reimbursement revenue received in 2019 related to real estate tax expense accrued in 2018.


7


NOI At Share:

The elements of our New York and Other NOI at share for the three months and years ended December 31, 2019 and 2018 and the three months ended September 30, 2019 are summarized below.

(Amounts in thousands)
For the Three Months Ended
 
For the Year Ended
December 31,
 
December 31,
 
September 30, 2019
 
 
2019
 
2018
 
 
2019
 
2018
New York:
 
 
 
 
 
 
 
 
 
Office(1)
$
183,925

 
$
186,832

 
$
177,469

 
$
724,526

 
$
743,001

Retail(1)
59,728

 
85,549

 
68,159

 
273,217

 
353,425

Residential
5,835

 
5,834

 
5,575

 
23,363

 
23,515

Alexander's Inc. ("Alexander's")
10,626

 
11,023

 
11,269

 
44,325

 
45,133

Hotel Pennsylvania
6,170

 
5,961

 
3,012

 
7,397

 
11,916

Total New York
266,284

 
295,199

 
265,484

 
1,072,828

 
1,176,990

 
 
 
 
 
 
 
 
 
 
Other:
 
 
 
 
 
 
 
 
 
theMART
22,712

 
10,981

 
24,862

 
102,071

 
90,929

555 California Street
14,533

 
14,005

 
15,265

 
59,657

 
54,691

Other investments
2,037

 
9,346

 
1,919

 
25,221

 
60,010

Total Other
39,282

 
34,332

 
42,046

 
186,949

 
205,630

 
 
 
 
 
 
 
 
 
 
NOI at share
$
305,566

 
$
329,531

 
$
307,530

 
$
1,259,777

 
$
1,382,620

____________________
(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:

The elements of our New York and Other NOI at share - cash basis for the three months and years ended December 31, 2019 and 2018 and the three months ended September 30, 2019 are summarized below.

(Amounts in thousands)
For the Three Months Ended
 
For the Year Ended
December 31,
 
December 31,
 
September 30, 2019
 
 
2019
 
2018
 
 
2019
 
2018
New York:
 
 
 
 
 
 
 
 
 
Office(1)
$
180,762

 
$
185,624

 
$
174,796

 
$
718,734

 
$
726,108

Retail(1)
54,357

 
80,515

 
65,636

 
267,655

 
324,219

Residential
5,763

 
5,656

 
5,057

 
21,894

 
22,076

Alexander's
10,773

 
11,129

 
11,471

 
45,093

 
47,040

Hotel Pennsylvania
6,052

 
6,009

 
2,964

 
7,134

 
12,120

Total New York
257,707

 
288,933

 
259,924

 
1,060,510

 
1,131,563

 
 
 
 
 
 
 
 
 
 
Other:
 
 
 
 
 
 
 
 
 
theMART
24,646

 
12,758

 
26,588

 
108,130

 
94,070

555 California Street
14,491

 
13,784

 
15,325

 
60,156

 
53,488

Other investments
2,132

 
8,524

 
1,656

 
24,921

 
58,795

Total Other
41,269

 
35,066

 
43,569

 
193,207

 
206,353

 
 
 
 
 
 
 
 
 
 
NOI at share - cash basis
$
298,976

 
$
323,999

 
$
303,493

 
$
1,253,717

 
$
1,337,916

____________________
(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.


8


Penn District - Active Development/Redevelopment Summary as of December 31, 2019
(Amounts in thousands of dollars, except square feet)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Property
Rentable
Sq. Ft.
 

 
 
 
 
 
 
 
Projected Incremental Cash Yield
Active Penn District Projects
 
Segment
 
 
Budget(1)
 
Amount
Expended
 
Remainder to be Expended
 
Stabilization Year
 
Farley (95% interest)
 
New York
 
844,000

 
1,030,000

(2) 
597,600

 
432,400

 
2022
 
7.4%
PENN2 - as expanded(3)
 
New York
 
1,795,000

 
750,000

 
40,820

 
709,180

 
2024
 
8.4%
PENN1(4)
 
New York
 
2,545,000

 
325,000

 
69,006


255,994

 
N/A
 
    13.5%(4)(5)
Districtwide Improvements
 
New York
 
N/A
 
100,000

 
6,314

 
93,686

 
N/A
 
N/A
Total Active Penn District Projects
 
 
 
 
 
2,205,000

 
713,740

 
1,491,260

(6) 
 
 
8.3%
________________________________
(1)
Excluding debt and equity carry.
(2)
Net of anticipated historic tax credits.
(3)
PENN2 (including signage) estimated impact on cash basis NOI and FFO of square feet taken out of service:
 
 
2020
 
2021
 
2022
Square feet out of service at end of year
 
1,140,000

 
1,190,000

 
1,200,000

Year-over-year reduction in Cash Basis NOI(i)
 
(25,000
)
 
(14,000
)
 

Year-over-year reduction in FFO(ii)
 
(19,000
)
 

 

________________________________
(i) After capitalization of real estate taxes and operating expenses on space out of service.
(ii) Net of capitalized interest on space out of service under redevelopment.

(4)
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.
(5)
Achieved as existing leases roll; average remaining lease term 5.1 years.
(6)
Expected to be funded from our balance sheet, principally from 220 CPS net sales proceeds.

There can be no assurance that the above projects will be completed, completed on schedule or within budget. In addition, there can be no assurance that the Company will be successful in leasing the properties on the expected schedule or at the assumed rental rates.

Conference Call and Audio Webcast
As previously announced, the Company will host a quarterly earnings conference call and an audio webcast on Wednesday, February 19, 2020 at 10:00 a.m. Eastern Time (ET). The conference call can be accessed by dialing 888-771-4371 (domestic) or 847-585-4405 (international) and indicating to the operator the passcode 49321500. A telephonic replay of the conference call will be available from 1:30 p.m. ET on February 19, 2020 through March 20, 2020. To access the replay, please dial 888-843-7419 and enter the passcode 49321500#. A live webcast of the conference call will be available on the Company’s website at www.vno.com and an online playback of the webcast will be available on the website following the conference call.
Contact
Joseph Macnow
(212) 894-7000
Supplemental Financial Information
Further details regarding results of operations, properties and tenants can be accessed at the Company’s website www.vno.com. Vornado Realty Trust is a fully - integrated equity real estate investment trust.

Certain statements contained herein may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. For a discussion of factors that could materially affect the outcome of our forward-looking statements and our future results and financial condition, see “Risk Factors” in Part I, Item 1A, of our Annual Report on Form 10-K for the year ended December 31, 2019. Such factors include, among others, risks associated with the timing of and costs associated with property improvements, financing commitments and general competitive factors.

9


VORNADO REALTY TRUST
CONSOLIDATED BALANCE SHEETS
(Amounts in thousands, except unit, share, and per share amounts)
As of
 
December 31, 2019
 
December 31, 2018
ASSETS
 
 
 
Real estate, at cost:
 
 
 
Land
$
2,591,261

 
$
3,306,280

Buildings and improvements
7,953,163

 
10,110,992

Development costs and construction in progress
1,490,614

 
2,266,491

Moynihan Train Hall development expenditures
914,960

 
445,693

Leasehold improvements and equipment
124,014

 
108,427

Total
13,074,012

 
16,237,883

Less accumulated depreciation and amortization
(3,015,958
)
 
(3,180,175
)
Real estate, net
10,058,054

 
13,057,708

Right-of-use assets
379,546

 

Cash and cash equivalents
1,515,012

 
570,916

Restricted cash
92,119

 
145,989

Marketable securities
33,313

 
152,198

Tenant and other receivables
95,733

 
73,322

Investments in partially owned entities
3,999,165

 
858,113

Real estate fund investments
222,649

 
318,758

220 Central Park South condominium units ready for sale
408,918

 
99,627

Receivable arising from the straight-lining of rents
742,206

 
935,131

Deferred leasing costs, net of accumulated amortization of $196,229 and $207,529
353,986

 
400,313

Identified intangible assets, net of accumulated amortization of $98,587 and $172,114
30,965

 
136,781

Other assets
355,347

 
431,938

 
$
18,287,013

 
$
17,180,794

LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND EQUITY
 
 
 
Mortgages payable, net
$
5,639,897

 
$
8,167,798

Senior unsecured notes, net
445,872

 
844,002

Unsecured term loan, net
745,840

 
744,821

Unsecured revolving credit facilities
575,000

 
80,000

Lease liabilities
498,254

 

Moynihan Train Hall obligation
914,960

 
445,693

Special dividend/distribution payable on January 15, 2020
398,292

 

Accounts payable and accrued expenses
440,049

 
430,976

Deferred revenue
59,429

 
167,730

Deferred compensation plan
103,773

 
96,523

Other liabilities
265,754

 
311,806

Total liabilities
10,087,120

 
11,289,349

Commitments and contingencies
 
 
 
Redeemable noncontrolling interests:
 
 
 
Class A units - 13,298,956 and 12,544,477 units outstanding
884,380

 
778,134

Series D cumulative redeemable preferred units - 141,401 and 177,101 units outstanding
4,535

 
5,428

Total redeemable noncontrolling interests
888,915

 
783,562

Shareholders' equity:
 
 
 
Preferred shares of beneficial interest: no par value per share; authorized 110,000,000 shares; issued and outstanding 36,795,640 and 36,798,580 shares
891,214

 
891,294

Common shares of beneficial interest: $0.04 par value per share; authorized 250,000,000 shares; issued and outstanding 190,985,677 and 190,535,499 shares
7,618

 
7,600

Additional capital
7,827,697

 
7,725,857

Earnings less than distributions
(1,954,266
)
 
(4,167,184
)
Accumulated other comprehensive (loss) income
(40,233
)
 
7,664

Total shareholders' equity
6,732,030

 
4,465,231

Noncontrolling interests in consolidated subsidiaries
578,948

 
642,652

Total equity
7,310,978

 
5,107,883

 
$
18,287,013

 
$
17,180,794


10


VORNADO REALTY TRUST
OPERATING RESULTS

(Amounts in thousands, except per share amounts)
For the Three Months Ended
December 31,
 
For the Year Ended
December 31,
 
2019
 
2018
 
2019
 
2018
Revenues
$
460,968

 
$
543,417

 
$
1,924,700

 
$
2,163,720

 
 
 
 
 
 
 
 
Income from continuing operations
$
160,621

 
$
97,564

 
$
3,334,292

 
$
421,965

Income (loss) from discontinued operations
55

 
257

 
(30
)
 
638

Net income
160,676

 
97,821

 
3,334,262

 
422,603

Less net loss (income) attributable to noncontrolling interests in:
 
 
 
 
 
 
 
Consolidated subsidiaries
58,592

 
21,886

 
24,547

 
53,023

Operating Partnership
(13,518
)
 
(6,680
)
 
(210,872
)
 
(25,672
)
Net income attributable to Vornado
205,750

 
113,027

 
3,147,937

 
449,954

Preferred share dividends
(12,533
)
 
(12,533
)
 
(50,131
)
 
(50,636
)
Preferred share issuance costs

 

 

 
(14,486
)
Net income attributable to common shareholders
$
193,217

 
$
100,494

 
$
3,097,806

 
$
384,832

 
 
 
 
 
 
 
 
Income per common share - basic:
 
 
 
 
 
 
 
Net income per common share
$
1.01

 
$
0.53

 
$
16.23

 
$
2.02

Weighted average shares outstanding
190,916

 
190,348

 
190,801

 
190,219

 
 
 
 
 
 
 
 
Income per common share - diluted:
 
 
 
 
 
 
 
Net income per common share
$
1.01

 
$
0.53

 
$
16.21

 
$
2.01

Weighted average shares outstanding
191,140

 
191,199

 
191,053

 
191,290

 
 
 
 
 
 
 
 
FFO attributable to common shareholders plus assumed conversions (non-GAAP)
$
311,876

 
$
210,100

 
$
1,003,398

 
$
729,740

Per diluted share (non-GAAP)
$
1.63

 
$
1.10

 
$
5.25

 
$
3.82

 
 
 
 
 
 
 
 
FFO attributable to common shareholders plus assumed conversions, as adjusted (non-GAAP)
$
171,030

 
$
169,874

 
$
666,207

 
$
713,488

Per diluted share (non-GAAP)
$
0.89

 
$
0.89

 
$
3.49

 
$
3.73

 
 
 
 
 
 
 
 
Weighted average shares used in determining FFO attributable to common shareholders plus assumed conversions per diluted share
191,140

 
191,199

 
191,051

 
191,189



11


VORNADO REALTY TRUST
NON-GAAP RECONCILIATIONS

The following table reconciles net income attributable to common shareholders to FFO attributable to common shareholders plus assumed conversions:
(Amounts in thousands, except per share amounts)
For the Three Months Ended
December 31,
 
For the Year Ended
December 31,
 
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
$
193,217

 
$
100,494

 
$
3,097,806

 
$
384,832

Per diluted share
$
1.01

 
$
0.53

 
$
16.21

 
$
2.01

 
 
 
 
 
 
 
 
FFO adjustments:
 
 
 
 
 
 
 
Depreciation and amortization of real property
$
85,609

 
$
104,067

 
$
389,024

 
$
413,091

Net losses (gains) on sale of real estate
58

 

 
(178,711
)
 
(158,138
)
Real estate impairment losses
565

 
12,000

 
32,001

 
12,000

Net gain on transfer to Fifth Avenue and Times Square JV on April 18, 2019, net of $11,945 attributable to noncontrolling interests

 

 
(2,559,154
)
 

Net gain from sale of UE common shares (sold on March 4, 2019)

 

 
(62,395
)
 

Decrease (increase) in fair value of marketable securities:
 
 
 
 
 
 
 
PREIT
2,438

 

 
21,649

 

Lexington (sold on March 1, 2019)

 
1,662

 
(16,068
)
 
26,596

Other

 
(10
)
 
(48
)
 
(143
)
After-tax purchase price fair value adjustment on depreciable real estate

 
(27,289
)
 

 
(27,289
)
Proportionate share of adjustments to equity in net income of partially owned entities to arrive at FFO:
 
 
 
 
 
 
 
Depreciation and amortization of real property
37,389

 
24,309

 
134,706

 
101,591

Net gains on sale of real estate

 

 

 
(3,998
)
Decrease in fair value of marketable securities
864

 
2,081

 
2,852

 
3,882

 
126,923

 
116,820

 
(2,236,144
)
 
367,592

Noncontrolling interests' share of above adjustments
(8,278
)
 
(7,229
)
 
141,679

 
(22,746
)
FFO adjustments, net
$
118,645

 
$
109,591

 
$
(2,094,465
)
 
$
344,846

 
 
 
 
 
 
 
 
FFO attributable to common shareholders
311,862

 
210,085

 
1,003,341

 
729,678

Convertible preferred share dividends
14

 
15

 
57

 
62

FFO attributable to common shareholders plus assumed conversions
$
311,876

 
$
210,100

 
$
1,003,398

 
$
729,740

Per diluted share
$
1.63

 
$
1.10

 
$
5.25

 
$
3.82

 
 
 
 
 
 
 
 
Reconciliation of weighted average shares outstanding used in determining FFO attributable to common shareholders plus assumed conversions per diluted share:
 
 
 
 
 
 
 
Weighted average common shares outstanding
190,916

 
190,348

 
190,801

 
190,219

Effect of dilutive securities:
 
 
 
 
 
 
 
Employee stock options and restricted share awards
191

 
814

 
216

 
933

Convertible preferred shares
33

 
37

 
34

 
37

Denominator for FFO attributable to common shareholders plus assumed conversions per diluted share
191,140

 
191,199

 
191,051

 
191,189


FFO is computed in accordance with the definition adopted by the Board of Governors of the National Association of Real Estate Investment Trusts (“NAREIT”). NAREIT defines FFO as GAAP net income or loss adjusted to exclude net gains from sales of depreciable real estate assets, real estate impairment losses, depreciation and amortization expense from real estate assets and other specified items, including the pro rata share of such adjustments of unconsolidated subsidiaries. FFO and FFO per diluted share are non-GAAP financial measures used by management, investors and analysts to facilitate meaningful comparisons of operating performance between periods and among our peers because it excludes the effect of real estate depreciation and amortization and net gains on sales, which are based on historical costs and implicitly assume that the value of real estate diminishes predictably over time, rather than fluctuating based on existing market conditions. FFO does not represent cash generated from operating activities and is not necessarily indicative of cash available to fund cash requirements and should not be considered as an alternative to net income as a performance measure or cash flow as a liquidity measure. FFO may not be comparable to similarly titled measures employed by other companies. A reconciliation of our net income attributable to common shareholders to FFO attributable to common shareholders plus assumed conversions is provided above. In addition to FFO attributable to common shareholders plus assumed conversions, we also disclose FFO attributable to common shareholders plus assumed conversions, as adjusted. Although this non-GAAP measure clearly differs from NAREIT’s definition of FFO, we believe it provides a meaningful presentation of operating performance. Reconciliations of FFO attributable to common shareholders plus assumed conversions to FFO attributable to common shareholders plus assumed conversions, as adjusted are provided on page 3 of this press release.

12


VORNADO REALTY TRUST
NON-GAAP RECONCILIATIONS - CONTINUED

Below is a reconciliation of net income to NOI at share and NOI at share - cash basis for the three months and year ended December 31, 2019 and 2018 and the three months ended September 30, 2019.
 
For the Three Months Ended
 
For the Year Ended
December 31,
(Amounts in thousands)
December 31,
 
September 30, 2019
 
 
2019
 
2018
 
 
2019
 
2018
Net income
$
160,676

 
$
97,821

 
$
363,849

 
$
3,334,262

 
$
422,603

Depreciation and amortization expense
92,926

 
112,869

 
96,437

 
419,107

 
446,570

General and administrative expense
39,791

 
32,934

 
33,237

 
169,920

 
141,871

Transaction related costs, impairment losses and other
3,223

 
14,637

 
1,576

 
106,538

 
31,320

Income from partially owned entities
(22,726
)
 
(3,090
)
 
(25,946
)
 
(78,865
)
 
(9,149
)
Loss (income) from real estate fund investments
90,302

 
51,258

 
(2,190
)
 
104,082

 
89,231

Interest and other investment income, net
(5,889
)
 
(7,656
)
 
(3,045
)
 
(21,819
)
 
(17,057
)
Interest and debt expense
59,683

 
83,175

 
61,448

 
286,623

 
347,949

Net gain on transfer to Fifth Avenue and Times Square JV

 

 

 
(2,571,099
)
 

Purchase price fair value adjustment

 
(44,060
)
 

 

 
(44,060
)
Net gains on disposition of wholly owned and partially owned assets
(203,835
)
 
(81,203
)
 
(309,657
)
 
(845,499
)
 
(246,031
)
Income tax expense
22,897

 
32,669

 
23,885

 
103,439

 
37,633

(Income) loss from discontinued operations
(55
)
 
(257
)
 
8

 
30

 
(638
)
NOI from partially owned entities
85,990

 
60,205

 
86,024

 
322,390

 
253,564

NOI attributable to noncontrolling interests in consolidated subsidiaries
(17,417
)
 
(19,771
)
 
(18,096
)
 
(69,332
)
 
(71,186
)
NOI at share
305,566

 
329,531

 
307,530

 
1,259,777

 
1,382,620

Non cash adjustments for straight-line rents, amortization of acquired below-market leases, net and other
(6,590
)
 
(5,532
)
 
(4,037
)
 
(6,060
)
 
(44,704
)
NOI at share - cash basis
$
298,976

 
$
323,999

 
$
303,493

 
$
1,253,717

 
$
1,337,916


NOI at share represents total revenues less operating expenses including our share of partially owned entities. NOI at share - cash basis represents NOI at share adjusted to exclude straight-line rental income and expense, amortization of acquired below and above market leases, net and other non-cash adjustments. We consider NOI at share - cash basis to be the primary non-GAAP financial measure for making decisions and assessing the unlevered performance of our segments as it relates to the total return on assets as opposed to the levered return on equity. As properties are bought and sold based on NOI at share - cash basis, we utilize this measure to make investment decisions as well as to compare the performance of our assets to that of our peers. NOI at share and NOI at share - cash basis should not be considered alternatives to net income or cash flow from operations and may not be comparable to similarly titled measures employed by other companies.

13


VORNADO REALTY TRUST
NON-GAAP RECONCILIATIONS - CONTINUED

Below are reconciliations of NOI at share to same store NOI at share for our New York segment, theMART, 555 California Street and other investments for the three months ended December 31, 2019 compared to December 31, 2018.
(Amounts in thousands)
Total
 
New York
 
theMART
 
555 California Street
 
Other
NOI at share for the three months ended December 31, 2019
$
305,566

 
$
266,284

 
$
22,712

 
$
14,533

 
$
2,037

Less NOI at share from:
 
 
 
 
 
 
 
 
 
 
Acquisitions
 
(122
)
 
(122
)
 

 

 

Dispositions
 
(62
)
 
(62
)
 

 

 

Development properties
 
(16,082
)
 
(16,082
)
 

 

 

Other non-same store (income) expense, net
 
(8,164
)
 
(5,969
)
 
(172
)
 
14

 
(2,037
)
Same store NOI at share for the three months ended December 31, 2019
$
281,136

 
$
244,049

 
$
22,540

 
$
14,547

 
$

 
 
 
 
 
 
 
 
 
 
NOI at share for the three months ended December 31, 2018
$
329,531

 
$
295,199

 
$
10,981

 
$
14,005

 
$
9,346

Less NOI at share from:
 
 
 
 
 
 
 
 
 
 
Change in ownership interests in properties contributed to Fifth Avenue and Times Square JV
 
(28,683
)
 
(28,683
)
 

 

 

Dispositions
 
(3,614
)
 
(3,614
)
 

 

 

Development properties
 
(21,797
)
 
(21,811
)
 

 
14

 

Other non-same store (income) expense, net
 
(13,041
)
 
(3,291
)
 
(463
)
 
59

 
(9,346
)
Same store NOI at share for the three months ended December 31, 2018
$
262,396

 
$
237,800

 
$
10,518

 
$
14,078

 
$

 
 
 
 
 
 
 
 
 
 
Increase in same store NOI at share for the three months ended December 31, 2019 compared to December 31, 2018
$
18,740

 
$
6,249

 
$
12,022

 
$
469

 
$

 
 
 
 
 
 
 
 
 
 
 
% increase in same store NOI at share
7.1
%
 
2.6
%
(1) 
114.3
%
(2) 
3.3
%
 
%
____________________
(1)
Excluding Hotel Pennsylvania, same store NOI remained unchanged.
(2)
The three months ended December 31, 2018 includes an additional $12,814 real estate tax expense accrual due to an increase in the tax-assessed value of theMART.
Same store NOI at share represents NOI at share from operations which are in service in both the current and prior year reporting periods. Same store NOI at share - cash basis is same store NOI at share adjusted to exclude straight-line rental income and expense, amortization of acquired below and above market leases, net and other non-cash adjustments. We present these non-GAAP measures to (i) facilitate meaningful comparisons of the operational performance of our properties and segments, (ii) make decisions on whether to buy, sell or refinance properties, and (iii) compare the performance of our properties and segments to those of our peers. Same store NOI at share and same store NOI at share - cash basis should not be considered alternatives to net income or cash flow from operations and may not be comparable to similarly titled measures employed by other companies.

14


VORNADO REALTY TRUST
NON-GAAP RECONCILIATIONS - CONTINUED

Below are reconciliations of NOI at share - cash basis to same store NOI at share - cash basis for our New York segment, theMART, 555 California Street and other investments for the three months ended December 31, 2019 compared to December 31, 2018.
(Amounts in thousands)
Total
 
New York
 
theMART
 
555 California Street
 
Other
NOI at share - cash basis for the three months ended December 31, 2019
$
298,976

 
$
257,707

 
$
24,646

 
$
14,491

 
$
2,132

 
Less NOI at share - cash basis from:
 
 
 
 
 
 
 
 
 
 
Acquisitions
(54
)
 
(54
)
 

 

 

 
Dispositions
(66
)
 
(66
)
 

 

 

 
Development properties
(16,948
)
 
(16,948
)
 

 

 

 
Other non-same store income, net
(9,736
)
 
(7,373
)
 
(172
)
 
(59
)
 
(2,132
)
Same store NOI at share - cash basis for the three months ended December 31, 2019
$
272,172

 
$
233,266

 
$
24,474

 
$
14,432

 
$

 
 
 
 
 
 
 
 
 
 
 
NOI at share - cash basis for the three months ended December 31, 2018
$
323,999

 
$
288,933

 
$
12,758

 
$
13,784

 
$
8,524

 
Less NOI at share - cash basis from:
 
 
 
 
 
 
 
 
 
 
Change in ownership interests in properties contributed to Fifth Avenue and Times Square JV
(27,243
)
 
(27,243
)
 

 

 

 
Dispositions
(3,870
)
 
(3,870
)
 

 

 

 
Development properties
(24,090
)
 
(24,104
)
 

 
14

 

 
Other non-same store (income) expense, net
(13,400
)
 
(4,416
)
 
(520
)
 
60

 
(8,524
)
Same store NOI at share - cash basis for the three months ended December 31, 2018
$
255,396

 
$
229,300

 
$
12,238

 
$
13,858

 
$

 
 
 
 
 
 
 
 
 
 
Increase in same store NOI at share - cash basis for the three months ended December 31, 2019 compared to December 31, 2018
$
16,776

 
$
3,966

 
$
12,236

 
$
574

 
$

 
 
 
 
 
 
 
 
 
 
% increase in same store NOI at share - cash basis
6.6
%
 
1.7
%
(1) 
100.0
%
(2) 
4.1
%
 
%
____________________
(1)
Excluding Hotel Pennsylvania, same store NOI at share - cash basis increased by 1.8%.
(2)
The three months ended December 31, 2018 includes an additional $12,814 real estate tax expense accrual due to an increase in the tax-assessed value of theMART.

 



15


VORNADO REALTY TRUST
NON-GAAP RECONCILIATIONS - CONTINUED

Below are reconciliations of NOI at share to same store NOI at share for our New York segment, theMART, 555 California Street and other investments for the three months ended December 31, 2019 compared to September 30, 2019.
(Amounts in thousands)
Total
 
New York
 
theMART
 
555 California Street
 
Other
NOI at share for the three months ended December 31, 2019
$
305,566

 
$
266,284

 
$
22,712

 
$
14,533

 
$
2,037

 
Less NOI at share from:
 
 
 
 
 
 
 
 
 
 
Acquisitions
(118
)
 
(118
)
 

 

 

 
Dispositions
(62
)
 
(62
)
 

 

 

 
Development properties
(16,087
)
 
(16,087
)
 

 

 

 
Other non-same store (income) expense, net
(8,103
)
 
(5,968
)
 
(172
)
 
74

 
(2,037
)
Same store NOI at share for the three months ended December 31, 2019
$
281,196

 
$
244,049

 
$
22,540

 
$
14,607

 
$

 
 
 
 
 
 
 
 
 
 
NOI at share for the three months ended September 30, 2019
$
307,530

 
$
265,484

 
$
24,862

 
$
15,265

 
$
1,919

 
Less NOI at share from:
 
 
 
 
 
 
 
 
 
 
Dispositions
(262
)
 
(262
)
 

 

 

 
Development properties
(19,429
)
 
(19,429
)
 

 

 

 
Other non-same store (income) expense, net
(11,254
)
 
(8,877
)
 
(532
)
 
74

 
(1,919
)
Same store NOI at share for the three months ended September 30, 2019
$
276,585

 
$
236,916

 
$
24,330

 
$
15,339

 
$

 
 
 
 
 
 
 
 
 
 
Increase (decrease) in same store NOI at share for the three months ended December 31, 2019 compared to September 30, 2019
$
4,611

 
$
7,133

 
$
(1,790
)
 
$
(732
)
 
$

 
 
 
 
 
 
 
 
 
 
 
% increase (decrease) in same store NOI at share
1.7
%
 
3.0
%
(1) 
(7.4
)%
 
(4.8
)%
 
%
____________________
(1)
Excluding Hotel Pennsylvania, same store NOI at share increased by 1.7%.

16


VORNADO REALTY TRUST
NON-GAAP RECONCILIATIONS - CONTINUED

Below are reconciliations of NOI at share - cash basis to same store NOI at share - cash basis for our New York segment, theMART, 555 California Street and other investments for the three months ended December 31, 2019 compared to September 30, 2019.
(Amounts in thousands)
Total
 
New York
 
theMART
 
555 California Street
 
Other
NOI at share - cash basis for the three months ended December 31, 2019
$
298,976

 
$
257,707

 
$
24,646

 
$
14,491

 
$
2,132

 
Less NOI at share - cash basis from:
 
 
 
 
 
 
 
 
 
 
Acquisitions
(49
)
 
(49
)
 

 

 

 
Dispositions
(66
)
 
(66
)
 

 

 

 
Development properties
(16,952
)
 
(16,952
)
 

 

 

 
Other non-same store income, net
(9,678
)
 
(7,374
)
 
(172
)
 

 
(2,132
)
Same store NOI at share - cash basis for the three months ended December 31, 2019
$
272,231

 
$
233,266

 
$
24,474

 
$
14,491

 
$

 
 
 
 
 
 
 
 
 
 
 
NOI at share - cash basis for the three months ended September 30, 2019
$
303,493

 
$
259,924

 
$
26,588

 
$
15,325

 
$
1,656

 
Less NOI at share - cash basis from:
 
 
 
 
 
 
 
 
 
 
Dispositions
(693
)
 
(693
)
 

 

 

 
Development properties
(24,641
)
 
(24,641
)
 

 

 

 
Other non-same store income, net
(12,701
)
 
(10,174
)
 
(871
)
 

 
(1,656
)
Same store NOI at share - cash basis for the three months ended September 30, 2019
$
265,458

 
$
224,416

 
$
25,717

 
$
15,325

 
$

 
 
 
 
 
 
 
 
 
 
Increase (decrease) in same store NOI at share - cash basis for the three months ended December 31, 2019 compared to September 30, 2019
$
6,773

 
$
8,850

 
$
(1,243
)
 
$
(834
)
 
$

 
 
 
 
 
 
 
 
 
 
% increase (decrease) in same store NOI at share - cash basis
2.6
%
 
3.9
%
(1) 
(4.8
)%
 
(5.4
)%
 
%
____________________
(1)
Excluding Hotel Pennsylvania, same store NOI at share - cash basis increased by 2.6%.

17


VORNADO REALTY TRUST
NON-GAAP RECONCILIATIONS - CONTINUED

Below are reconciliations of NOI at share to same store NOI at share for our New York segment, theMART, 555 California Street and other investments for the year ended December 31, 2019 compared to December 31, 2018.
(Amounts in thousands)
Total
 
New York
 
theMART
 
555 California Street
 
Other
NOI at share for the year ended December 31, 2019
$
1,259,777

 
$
1,072,828

 
$
102,071

 
$
59,657

 
$
25,221

 
Less NOI at share from:
 
 
 
 
 
 
 
 
 
 
Acquisitions
(334
)
 
(334
)
 

 

 

 
Change in ownership interests in properties contributed to Fifth Avenue and Times Square JV
(5,479
)
 
(5,479
)
 

 

 

 
Dispositions
(7,420
)
 
(7,420
)
 

 

 

 
Development properties
(54,099
)
 
(54,099
)
 

 

 

 
Other non-same store (income) expense, net
(33,028
)
 
(5,585
)
 
(2,635
)
 
413

 
(25,221
)
Same store NOI at share for the year ended December 31, 2019
$
1,159,417

 
$
999,911

 
$
99,436

 
$
60,070

 
$

 
 
 
 
 
 
 
 
 
 
NOI at share for the year ended December 31, 2018
$
1,382,620

 
$
1,176,990

 
$
90,929

 
$
54,691

 
$
60,010

 
Less NOI at share from:
 
 
 
 
 
 
 
 
 
 
Acquisitions
(121
)
 
(121
)
 

 

 

 
Change in ownership interests in properties contributed to Fifth Avenue and Times Square JV
(84,020
)
 
(84,020
)
 

 

 

 
Dispositions
(14,949
)
 
(14,949
)
 

 

 

 
Development properties
(74,720
)
 
(74,720
)
 

 

 

 
Other non-same store (income) expense, net
(72,930
)
 
(7,825
)
 
(5,155
)
 
60

 
(60,010
)
Same store NOI at share for the year ended December 31, 2018
$
1,135,880

 
$
995,355

 
$
85,774

 
$
54,751

 
$

 
 
 
 
 
 
 
 
 
 
Increase in same store NOI at share for the year ended December 31, 2019 compared to December 31, 2018
$
23,537

 
$
4,556

 
$
13,662

 
$
5,319

 
$

 
 
 
 
 
 
 
 
 
 
 
% increase in same store NOI at share
2.1
%
 
0.5
%
(1) 
15.9
%
(2) 
9.7
%
 
%
____________________
(1)
Excluding Hotel Pennsylvania, same store NOI at share increased by 0.9%.
(2)
Primarily due to $11,131 of tenant reimbursement revenue received in 2019 related to real estate tax expense accrued in 2018.


18


VORNADO REALTY TRUST
NON-GAAP RECONCILIATIONS - CONTINUED

Below are reconciliations of NOI at share - cash basis to same store NOI at share - cash basis for our New York segment, theMART, 555 California Street and other investments for the year ended December 31, 2019 compared to December 31, 2018.
(Amounts in thousands)
Total
 
New York
 
theMART
 
555 California Street
 
Other
NOI at share - cash basis for the year ended December 31, 2019
$
1,253,717

 
$
1,060,510

 
$
108,130

 
$
60,156

 
$
24,921

 
Less NOI at share - cash basis from:
 
 
 
 
 
 
 
 
 
 
Acquisitions
(266
)
 
(266
)
 

 

 

 
Change in ownership interests in properties contributed to Fifth Avenue and Times Square JV
(5,183
)
 
(5,183
)
 

 

 

 
Dispositions
(8,219
)
 
(8,219
)
 

 

 

 
Development properties
(64,359
)
 
(64,359
)
 

 

 

 
Other non-same store (income) expense, net
(52,594
)
 
(24,892
)
 
(2,973
)
 
192

 
(24,921
)
Same store NOI at share - cash basis for the year ended December 31, 2019
$
1,123,096

 
$
957,591

 
$
105,157

 
$
60,348

 
$

 
 
 
 
 
 
 
 
 
 
NOI at share - cash basis for the year ended December 31, 2018
$
1,337,916

 
$
1,131,563

 
$
94,070

 
$
53,488

 
$
58,795

 
Less NOI at share - cash basis from:
 
 
 
 
 
 
 
 
 
 
Acquisitions
(121
)
 
(121
)
 

 

 

 
Change in ownership interests in properties contributed to Fifth Avenue and Times Square JV
(79,427
)
 
(79,427
)
 

 

 

 
Dispositions
(14,764
)
 
(14,764
)
 

 

 

 
Development properties
(81,137
)
 
(81,137
)
 

 

 

 
Other non-same store (income) expense, net
(78,119
)
 
(14,011
)
 
(5,373
)
 
60

 
(58,795
)
Same store NOI at share - cash basis for the year ended December 31, 2018
$
1,084,348

 
$
942,103

 
$
88,697

 
$
53,548

 
$

 
 
 
 
 
 
 
 
 
 
Increase in same store NOI at share - cash basis for the year ended December 31, 2019 compared to December 31, 2018
$
38,748

 
$
15,488

 
$
16,460

 
$
6,800

 
$

 
 
 
 
 
 
 
 
 
 
 
% increase in same store NOI at share - cash basis
3.6
%
 
1.6
%
(1) 
18.6
%
(2) 
12.7
%
 
%
____________________
(1)
Excluding Hotel Pennsylvania, same store NOI at share - cash basis increased by 2.2%.
(2)
Primarily due to $11,131 of tenant reimbursement revenue received in 2019 related to real estate tax expense accrued in 2018.











19
Exhibit
EXHIBIT 99.2


https://cdn.kscope.io/6b76d8e44602142e0060a4e1928a397d-supplementalcoversdecember20.jpg



 https://cdn.kscope.io/6b76d8e44602142e0060a4e1928a397d-vornadologoa11.jpg

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
-
 
 
 
 
COMPONENTS OF NET ASSET VALUE
-
 
 
 
 
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
 
 
Ground Leases
 
 
Property Table
-
 
 
 
 
EXECUTIVE OFFICERS AND RESEARCH COVERAGE
 
 
 
 
 
 
APPENDIX: DEFINITIONS AND NON-GAAP RECONCILIATIONS
 
 
 
Definitions
 
 
Reconciliations
-
Certain statements contained herein constitute forward-looking statements as such term is defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements are not guarantees of future performance. They represent our intentions, plans, expectations and beliefs and are subject to numerous assumptions, risks and uncertainties. Our future results, financial condition and business may differ materially from those expressed in these forward-looking statements. You can find many of these statements by looking for words such as "approximates," "believes," "expects," "anticipates," "estimates," "intends," "plans," "would," "may" or other similar expressions in this supplemental package. We also note the following forward-looking statements: in the case of our development and redevelopment projects, the estimated completion date, estimated project cost, projected incremental cash yield, stabilization date and cost to complete; and estimates of future capital expenditures, dividends to common and preferred shareholders and operating partnership distributions. Many of the factors that will determine the outcome of these and our other forward-looking statements are beyond our ability to control or predict. For further discussion of factors that could materially affect the outcome of our forward-looking statements, see "Item 1A. Risk Factors" in Part 1 of our Annual Report on Form 10-K for the year ended December 31, 2019. For these statements, we claim the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. You are cautioned not to place undue reliance on our forward-looking statements, which speak only as of the date of this supplemental package. All subsequent written and oral forward-looking statements attributable to us or any person acting on our behalf are expressly qualified in their entirety by the cautionary statements contained or referred to in this section. We do not undertake any obligation to release publicly any revisions to our forward-looking statements to reflect events or circumstances occurring after the date of this supplemental package. This supplemental package includes certain non-GAAP financial measures, which are accompanied by what the Company considers the most directly comparable financial measures calculated and presented in accordance with GAAP. These include Funds From Operations ("FFO"), Funds Available for Distribution ("FAD"), Net Operating Income ("NOI") and Earnings Before Depreciation and Amortization for Real Estate Companies ("EBIDTAre"). Quantitative reconciliations of the differences between the most directly comparable GAAP financial measures and the non-GAAP financial measures presented are provided within this Supplemental package. Definitions of these non-GAAP financial measures and statements of the reasons why management believes the non-GAAP measures provide useful information to investors about the Company's financial condition and results of operations, and, if applicable, the purposes for which management uses the measures, can be found in the Definitions section of this Supplemental package starting on page i.

- 2 -


 https://cdn.kscope.io/6b76d8e44602142e0060a4e1928a397d-vornadologoa11.jpg

BUSINESS DEVELOPMENTS
 
Disposition Activity
220 Central Park South ("220 CPS")
During the three months ended December 31, 2019, we closed on the sale of 17 condominium units at 220 CPS for net proceeds of $565,863,000 resulting in a financial statement net gain of $203,893,000 which is included in "net gains on disposition of wholly owned and partially owned assets" on our consolidated statements of income. In connection with these sales, $30,238,000 of income tax expense was recognized on our consolidated statements of income. During the year ended December 31, 2019, we closed on the sale of 54 condominium units at 220 CPS for net proceeds of $1,605,356,000 resulting in a financial statement net gain of $604,393,000 which is included in "net gains on disposition of wholly owned and partially owned assets" on our consolidated statements of income. In connection with these sales, $101,828,000 of income tax expense was recognized on our consolidated statements of income. From inception to December 31, 2019, we closed on the sale of 65 units for aggregate net proceeds of $1,820,132,000. During the year ended December 31, 2019, we repaid the remaining $737,000,000 of the $950,000,000 220 CPS loan.
Lexington Realty Trust ("Lexington")
On March 1, 2019, we sold all of our 18,468,969 common shares of Lexington, realizing net proceeds of $167,698,000. We recorded a $16,068,000 gain (mark-to-market increase), which is included in "interest and other investment income, net" on our consolidated statements of income for the year ended December 31, 2019.
Urban Edge Properties (“UE”)
On March 4, 2019, we converted to common shares and sold all of our 5,717,184 partnership units of UE, realizing net proceeds of $108,512,000. The sale resulted in a net gain of $62,395,000 which is included in "net gains on disposition of wholly owned and partially owned assets" on our consolidated statements of income for the year ended December 31, 2019.





- 3 -


 https://cdn.kscope.io/6b76d8e44602142e0060a4e1928a397d-vornadologoa11.jpg

BUSINESS DEVELOPMENTS
 
Disposition Activity - continued
Fifth Avenue and Times Square JV
On April 18, 2019 (the “Closing Date”), we entered into a transaction agreement (the “Transaction Agreement”) with a group of institutional investors (the “Investors”). The Transaction Agreement provides for a series of transactions (collectively, the “Transaction”) pursuant to which (i) prior to the Closing Date, we contributed our interests in properties located at 640 Fifth Avenue, 655 Fifth Avenue, 666 Fifth Avenue, 689 Fifth Avenue, 697-703 Fifth Avenue, 1535 Broadway and 1540 Broadway (collectively, the “Properties”) to subsidiaries of a newly formed joint venture (“Fifth Avenue and Times Square JV”) and (ii) on the Closing Date, transferred a 48.5% common interest in Fifth Avenue and Times Square JV to the Investors. The 48.5% common interest in the joint venture represents an effective 47.2% interest in the Properties (of which 45.4% was transferred from Vornado). The Properties include approximately 489,000 square feet of retail space, 327,000 square feet of office space, signage associated with 1535 and 1540 Broadway, the parking garage at 1540 Broadway and the theater at 1535 Broadway.
We retained the remaining 51.5% common interest in Fifth Avenue and Times Square JV which represents an effective 51.0% interest in the Properties and an aggregate $1.828 billion of preferred equity interests in certain of the properties. We also provided $500,000,000 of temporary preferred equity on 640 Fifth Avenue until May 23, 2019 when mortgage financing was completed. All of the preferred equity has an annual coupon of 4.25% for the first five years, increasing to 4.75% for the next five years and thereafter at a formulaic rate. It can be redeemed under certain conditions on a tax deferred basis.
Net cash proceeds from the Transaction were $1.179 billion, after (i) deductions for the defeasance of a $390,000,000 mortgage loan on 666 Fifth Avenue and the repayment of a $140,000,000 mortgage loan on 655 Fifth Avenue, (ii) proceeds from a $500,000,000 mortgage loan on 640 Fifth Avenue, described below, (iii) approximately $23,000,000 used to purchase noncontrolling investors' interests and (iv) approximately $53,000,000 of transaction costs (including $17,000,000 of costs related to the defeasance of the 666 Fifth Avenue mortgage loan).
We continue to manage and lease the Properties. We share control with the Investors over major decisions of the joint venture, including decisions regarding leasing, operating and capital budgets, and refinancings. Accordingly, we no longer hold a controlling financial interest in the Properties which has been transferred to the joint venture. As a result, our investment in Fifth Avenue and Times Square JV is accounted for under the equity method from the date of transfer. The Transaction valued the Properties at $5.556 billion resulting in a financial statement net gain of $2.571 billion, before noncontrolling interest of $11,945,000, including the related step up in our basis of the retained portion of the assets to fair value. The net gain is included in "net gain on transfer to Fifth Avenue and Times Square JV" on our consolidated statements of income for the year ended December 31, 2019. The gain for tax purposes was approximately $735,000,000.
On May 23, 2019, we received $500,000,000 from the redemption of our temporary preferred equity in 640 Fifth Avenue. The temporary preferred equity was redeemed from the proceeds of a $500,000,000 mortgage financing that was completed on the property. The five-year loan, which is guaranteed by us, is interest-only at LIBOR plus 1.01%. The interest rate was swapped for four years to a fixed rate of 3.07%.
330 Madison Avenue
On July 11, 2019, we sold our 25% interest in 330 Madison Avenue to our joint venture partner. We received net proceeds of approximately $100,000,000 after deducting our share of the existing $500,000,000 mortgage loan resulting in a financial statement net gain of $159,292,000. The net gain is included in "net gains on disposition of wholly owned and partially owned assets" on our consolidated statements of income for the year ended December 31, 2019. The gain for tax purposes was approximately $139,000,000.
3040 M Street
On September 18, 2019, we completed the $49,750,000 sale of 3040 M Street, a 44,000 square foot retail building in Washington, DC, which resulted in a net gain of $19,477,000 which is included in “net gains on disposition of wholly owned and partially owned assets” on our consolidated statements of income for year ended December 31, 2019. The gain for tax purposes was approximately $19,000,000.
Pennsylvania Real Estate Investment Trust ("PREIT")
On January 23, 2020, we sold all of our 6,250,000 common shares of PREIT, realizing net proceeds of $28,375,000. A $4,938,000 loss (mark-to-market decrease) will be recorded in the first quarter of 2020.




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BUSINESS DEVELOPMENTS
 
Financing Activity
On January 28, 2019, a joint venture in which we have a 45.1% interest, completed a $167,500,000 refinancing of 61 Ninth Avenue, a 166,000 square foot Manhattan office and retail property. The seven-year interest-only loan carries a rate of LIBOR plus 1.35% (3.07% as of December 31, 2019) and matures in January 2026. We realized net proceeds of approximately $31,000,000. The loan replaces the previous $90,000,000 construction loan that bore interest at LIBOR plus 3.05% and was scheduled to mature in December 2021.
On February 4, 2019, we completed a $95,700,000 refinancing of 435 Seventh Avenue, a 43,000 square foot Manhattan retail property. The interest-only loan carries a rate of LIBOR plus 1.30% (3.00% as of December 31, 2019) and matures in February 2024. The recourse loan replaces the previous $95,700,000 loan that bore interest at LIBOR plus 2.25% and was scheduled to mature in August 2019.
On February 12, 2019, we completed a $580,000,000 refinancing of 100 West 33rd Street, a 1.1 million square foot Manhattan property comprised of 859,000 square feet of office space and the 256,000 square foot Manhattan Mall. The interest-only loan carries a rate of LIBOR plus 1.55% (3.25% as of December 31, 2019) and matures in April 2024, with two one-year extension options. The loan replaces the previous $580,000,000 loan that bore interest at LIBOR plus 1.65% and was scheduled to mature in July 2020.
On March 1, 2019, we called for redemption all of our $400,000,000 5.00% senior unsecured notes. The notes, which were scheduled to mature in January 2022, were redeemed on April 1, 2019 at a redemption price of 105.51% of the principal amount plus accrued interest. In connection therewith, we expensed $22,540,000 relating to debt prepayment costs which is included in "interest and debt expense" on our consolidated statements of income for the year ended December 31, 2019.
On March 26, 2019, we increased to $1.5 billion (from $1.25 billion) and extended to March 2024 (as fully extended) from February 2022 one of our two unsecured revolving credit facilities. The interest rate on the extended facility was lowered from LIBOR plus 1.00% to LIBOR plus 0.90%. The facility fee remains unchanged at 20 basis points.
On May 24, 2019, we extended our $375,000,000 mortgage loan on 888 Seventh Avenue, a 885,000 square foot Manhattan office building, from December 2020 to December 2025. The interest rate on the new amortizing mortgage loan is LIBOR plus 1.70% (3.44% as of December 31, 2019). Pursuant to an existing swap agreement, the interest rate on the $375,000,000 mortgage loan has been swapped to 3.25% through December 2020.
On June 28, 2019, a joint venture in which we have a 55% interest, completed a $145,700,000 refinancing of 512 West 22nd Street, a 173,000 square foot Manhattan office building, of which $109,565,000 was outstanding as of December 31, 2019. The four-year interest-only loan carries a rate of LIBOR plus 2.00% (3.72% as of December 31, 2019) and matures in June 2023 with a one-year extension option. The loan replaces the previous $126,000,000 construction loan that bore interest at LIBOR plus 2.65% and was scheduled to mature in November 2019.
On July 25, 2019, a joint venture in which we have a 50% interest, completed a $60,000,000 refinancing of 825 Seventh Avenue, a 165,000 square foot Manhattan office building, of which $31,889,000 was outstanding as of December 31, 2019. The interest-only loan carries a rate of LIBOR plus 1.65% (3.40% as of December 31, 2019) and matures in July 2022 with a one-year extension option. The loan replaces the previous $20,500,000 loan that bore interest at LIBOR plus 1.40% and was scheduled to mature in September 2019.
On September 5, 2019, a consolidated joint venture, in which we have a 50% interest, completed a $75,000,000 refinancing of 606 Broadway, a 36,000 square foot Manhattan office and retail building, of which $67,804,000 was outstanding as of December 31, 2019. The interest-only loan carries a rate of LIBOR plus 1.80% (3.52% as of December 31, 2019) and matures in September 2024. In connection therewith, the joint venture purchased an interest rate cap that caps LIBOR at a rate of 4.00%. The loan replaces the previous $65,000,000 construction loan. The construction loan bore interest at LIBOR plus 3.00% and was scheduled to mature in May 2021.
On September 27, 2019, we repaid the $575,000,000 mortgage loan on PENN2 with proceeds from our unsecured revolving credit facilities. The mortgage loan was scheduled to mature in December 2019. PENN2 is a 1,795,000 square foot (as expanded) Manhattan office building currently under redevelopment.
On November 6, 2019, Vornado Capital Partners Real Estate Fund completed a $145,075,000 refinancing of Lucida, a 155,000 square foot Manhattan retail and residential property. The three-year interest-only loan carries a rate of LIBOR plus 1.85% (3.54% as of December 31, 2019) with two one-year extension options. The loan replaces the previous $146,000,000 loan that bore interest at LIBOR plus 1.55% and was scheduled to mature in December 2019.



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BUSINESS DEVELOPMENTS
 
Financing Activity - continued
On November 26, 2019, a joint venture in which we have a 20.1% interest, completed a $800,000,000 refinancing of 650 Madison Avenue, a 601,000 square foot Manhattan office and retail property. The ten-year interest-only loan carries a fixed rate of 3.49% and matures in December 2029. The loan replaces the previous $800,000,000 loan that bore interest at a fixed rate of 4.39% and was scheduled to mature in October 2020.
On December 23, 2019, a joint venture in which we have a 49.9% interest, completed a $85,500,000 refinancing, of which $82,500,000 was outstanding as of December 31, 2019, of 50-70 West 93rd Street, a 325-unit Manhattan residential complex. The five-year interest-only loan carries an interest rate of LIBOR plus 1.53%, which was swapped to a fixed rate of 3.14%, and matures in December 2024. The loan replaces the previous $80,000,000 loan that bore interest at LIBOR plus 1.70% and was scheduled to mature in August 2021, as extended.
Other Activity
On December 19, 2019, we paid Kmart Corporation $34,000,000, of which $10,000,000 is expected to be reimbursed, to early terminate their 141,000 square foot retail space lease at PENN1 which was scheduled to expire in January 2036.
Leasing Activity For The Three Months Ended December 31, 2019:
173,000 square feet of New York Office space (117,000 square feet at share) at an initial rent of $101.67 per square foot and a weighted average lease term of 6.6 years. The GAAP and cash mark-to-market rent on the 54,000 square feet of second generation space were negative 3.5% and 5.2%, respectively. Tenant improvements and leasing commissions were $13.53 per square foot per annum, or 13.3% of initial rent.
94,000 square feet of New York Retail space (73,000 square feet at share) at an initial rent of $233.55 per square foot and a weighted average lease term of 9.4 years. The GAAP and cash mark-to-market rent on the 52,000 square feet of second generation space were positive 0.3% and 11.3%, respectively. Tenant improvements and leasing commissions were $10.72 per square foot per annum, or 4.6% of initial rent.
52,000 square feet at theMART at an initial rent of $50.26 per square foot and a weighted average lease term of 5.0 years. The GAAP and cash mark-to-market rent on the 50,000 square feet of second generation space were positive 3.1% and negative 2.3%, respectively. Tenant improvements and leasing commissions were $5.38 per square foot per annum, or 10.7% of initial rent.
30,000 square feet at 555 California Street (21,000 square feet at share) at an initial rent of $94.00 per square foot and a weighted average lease term of 5.0 years. The GAAP and cash mark-to-market rent on the 21,000 square feet of second generation space were positive 100.5% and 72.5%, respectively. Tenant improvements and leasing commissions were $7.28 per square foot per annum, or 7.7% of initial rent.
Leasing Activity For The Year Ended December 31, 2019:
987,000 square feet of New York Office space (793,000 square feet at share) at an initial rent of $82.17 per square foot and a weighted average lease term of 7.7 years. The GAAP and cash mark-to-market rent on the 553,000 square feet of second generation space were positive 5.5% and 4.6%, respectively. Tenant improvements and leasing commissions were $10.89 per square foot per annum, or 13.3% of initial rent.
238,000 square feet of New York Retail space (207,000 square feet at share) at an initial rent of $175.35 per square foot and a weighted average lease term of 10.9 years. The GAAP and cash mark-to-market rent on the 171,000 square feet of second generation space were positive 12.9% and 9.8%, respectively. Tenant improvements and leasing commissions were $6.29 per square foot per annum, or 3.6% of initial rent.
286,000 square feet at theMART at an initial rent of $49.43 per square foot and a weighted average lease term of 6.1 years. The GAAP and cash mark-to-market rent on the 280,000 square feet of second generation space were positive 10.7% and 4.6%, respectively. Tenant improvements and leasing commissions were $5.55 per square foot per annum, or 11.2% of initial rent.
172,000 square feet at 555 California Street (120,000 square feet at share) at an initial rent of $88.70 per square foot and a weighted average lease term of 6.1 years. The GAAP and cash mark-to-market rent on the 115,000 square feet of second generation space were positive 64.9% and 38.1%, respectively. Tenant improvements and leasing commissions were $8.84 per square foot per annum, or 10.0% of initial rent.


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FINANCIAL HIGHLIGHTS (unaudited)
 
 
 
 
 
 
 
 
 
(Amounts in thousands, except per share amounts)
 
 
 
 
 
For the Three Months Ended
 
For the Year Ended
December 31,
 
December 31,
 
September 30, 2019
 
 
2019
 
2018
 
 
2019
 
2018
Total revenues
$
460,968

 
$
543,417

 
$
465,961

 
$
1,924,700

 
$
2,163,720

 
 
 
 
 
 
 
 
 
 
Net income attributable to common shareholders
$
193,217

 
$
100,494

 
$
322,906

 
$
3,097,806

 
$
384,832

Per common share:
 
 
 
 
 
 
 
 
 
Basic
$
1.01

 
$
0.53

 
$
1.69

 
$
16.23

 
$
2.02

Diluted
$
1.01

 
$
0.53

 
$
1.69

 
$
16.21

 
$
2.01

 
 
 
 
 
 
 
 
 
 
Net income attributable to common shareholders, as adjusted (non-GAAP)
$
56,381

 
$
49,436

 
$
52,624

 
$
176,716

 
$
238,700

Per diluted share (non-GAAP)
$
0.29

 
$
0.26

 
$
0.28

 
$
0.92

 
$
1.25

 
 
 
 
 
 
 
 
 
 
FFO attributable to common shareholders plus assumed conversions, as adjusted (non-GAAP)
$
171,030

 
$
169,874

 
$
170,966

 
$
666,207

 
$
713,488

Per diluted share (non-GAAP)
$
0.89

 
$
0.89

 
$
0.89

 
$
3.49

 
$
3.73

 
 
 
 
 
 
 
 
 
 
FFO attributable to common shareholders plus assumed conversions (non-GAAP)
$
311,876

 
$
210,100

 
$
279,509

 
$
1,003,398

 
$
729,740

FFO - Operating Partnership Basis ("OP Basis") (non-GAAP)
$
332,029

 
$
223,583

 
$
297,837

 
$
1,067,457

 
$
776,393

Per diluted share (non-GAAP)
$
1.63

 
$
1.10

 
$
1.46

 
$
5.25

 
$
3.82

 
 
 
 
 
 
 
 
 
 
Dividends per common share:
 
 
 
 
 
 
 
 
 
Aggregate quarterly dividends
$
0.66

 
$
0.63

 
$
0.66

 
$
2.64

 
$
2.52

Special dividend
1.95

 

 

 
1.95

 

Total
$
2.61

 
$
0.63

 
$
0.66

 
$
4.59

 
$
2.52

 
 
 
 
 
 
 
 
 
 
FFO payout ratio (based on FFO attributable to common shareholders plus assumed conversions, as adjusted)
74.2
%
 
70.8
%
 
74.2
%
 
75.6
%
 
67.6
%
FAD payout ratio
93.0
%
 
100.0
%
 
113.8
%
 
95.3
%
 
91.6
%
 
 
 
 
 
 
 
 
 
 
Weighted average shares used in determining FFO attributable to common shareholders
   plus assumed conversions per diluted share (REIT basis)
191,140

 
191,199

 
191,024

 
191,051

 
191,189

Convertible units:
 
 
 
 
 
 
 
 
 
Class A
12,162

 
11,827

 
12,195

 
12,146

 
11,849

Equity awards - unit equivalents
189

 
443

 
331

 
51

 
374

Weighted average shares used in determining FFO attributable to Class A unitholders
   plus assumed conversions per diluted share (OP Basis)
203,491

 
203,469

 
203,550

 
203,248

 
203,412


Please refer to the Appendix for reconciliations of GAAP to non-GAAP measures.

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CONSOLIDATED NET INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS (unaudited)
(Amounts in thousands)
 
 
For the Three Months Ended
 
 
December 31,
 
September 30,
2019
 
 
2019
 
2018
 
Variance
 
Property rentals(1)
 
$
360,139

 
$
433,521

 
$
(73,382
)
 
$
372,186

Tenant expense reimbursements(1)
 
55,233

 
62,119

 
(6,886
)
 
55,772

Amortization of acquired below-market leases, net
 
4,269

 
7,093

 
(2,824
)
 
4,393

Straight-lining of rents
 
(1,233
)
 
(2,674
)
 
1,441

 
(4,713
)
Total rental revenues
 
418,408

 
500,059

 
(81,651
)
 
427,638

Fee and other income:
 
 
 
 
 
 
 
 
BMS cleaning fees
 
31,642

 
32,262

 
(620
)
 
30,677

Management and leasing fees
 
3,479

 
3,119

 
360

 
3,326

Other income
 
7,439

 
7,977

 
(538
)
 
4,320

Total revenues
 
460,968

 
543,417

 
(82,449
)
 
465,961

Operating expenses
 
(223,975
)
 
(254,320
)
 
30,345

 
(226,359
)
Depreciation and amortization
 
(92,926
)
 
(112,869
)
 
19,943

 
(96,437
)
General and administrative
 
(39,791
)
 
(32,934
)
 
(6,857
)
 
(33,237
)
(Expense) benefit from deferred compensation plan liability
 
(3,887
)
 
6,014

 
(9,901
)
 
(974
)
Transaction related costs, impairment losses and other
 
(3,223
)
 
(14,637
)
 
11,414

 
(1,576
)
Total expenses
 
(363,802
)
 
(408,746
)
 
44,944

 
(358,583
)
Income from partially owned entities(2)
 
22,726

 
3,090

 
19,636

 
25,946

(Loss) income from real estate fund investments
 
(90,302
)
 
(51,258
)
 
(39,044
)
 
2,190

Interest and other investment income, net
 
5,889

 
7,656

 
(1,767
)
 
3,045

Income (loss) from deferred compensation plan assets
 
3,887

 
(6,014
)
 
9,901

 
974

Interest and debt expense
 
(59,683
)
 
(83,175
)
 
23,492

 
(61,448
)
Purchase price fair value adjustment
 

 
44,060

 
(44,060
)
 

Net gains on disposition of wholly owned and partially owned assets
 
203,835

 
81,203

 
122,632

 
309,657

Income before income taxes
 
183,518

 
130,233

 
53,285

 
387,742

Income tax expense
 
(22,897
)
 
(32,669
)
 
9,772

 
(23,885
)
Income from continuing operations
 
160,621

 
97,564

 
63,057

 
363,857

Income (loss) from discontinued operations
 
55

 
257

 
(202
)
 
(8
)
Net income
 
160,676

 
97,821

 
62,855

 
363,849

Less net loss (income) attributable to noncontrolling interests in:
 
 
 
 
 
 
 
 
Consolidated subsidiaries
 
58,592

 
21,886

 
36,706

 
(5,774
)
Operating Partnership
 
(13,518
)
 
(6,680
)
 
(6,838
)
 
(22,637
)
Net income attributable to Vornado
 
205,750

 
113,027

 
92,723

 
335,438

Preferred share dividends
 
(12,533
)
 
(12,533
)
 

 
(12,532
)
Net income attributable to common shareholders
 
$
193,217

 
$
100,494

 
$
92,723

 
$
322,906

 
 
 
 
 
 
 
 
 
Capitalized expenditures:
 
 
 
 
 
 
 
 
Leasing payroll(3)
 
$

 
$
1,655

 
$
(1,655
)
 
$

Development payroll
 
3,341

 
4,124

 
(783
)
 
2,158

Interest and debt expense
 
13,016

 
23,448

 
(10,432
)
 
16,047

________________________________
(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.

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CONSOLIDATED NET INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS (unaudited)
(Amounts in thousands)
 
 
For the Year Ended December 31,
 
 
2019
 
2018
 
Variance
Property rentals(1)
 
$
1,528,870

 
$
1,714,027

 
$
(185,157
)
Tenant expense reimbursements(1)
 
228,201

 
247,128

 
(18,927
)
Amortization of acquired below-market leases, net
 
19,830

 
38,573

 
(18,743
)
Straight-lining of rents
 
(9,679
)
 
7,605

 
(17,284
)
Total rental revenues
 
1,767,222

 
2,007,333

 
(240,111
)
Fee and other income:
 
 
 
 
 
 
BMS cleaning fees
 
124,674

 
120,357

 
4,317

Management and leasing fees
 
13,542

 
13,324

 
218

Other income
 
19,262

 
22,706

 
(3,444
)
Total revenues
 
1,924,700

 
2,163,720

 
(239,020
)
Operating expenses
 
(917,981
)
 
(963,478
)
 
45,497

Depreciation and amortization
 
(419,107
)
 
(446,570
)
 
27,463

General and administrative
 
(169,920
)
 
(141,871
)
 
(28,049
)
(Expense) benefit from deferred compensation plan liability
 
(11,609
)
 
2,480

 
(14,089
)
Transaction related costs, impairment losses and other
 
(106,538
)
 
(31,320
)
 
(75,218
)
Total expenses
 
(1,625,155
)
 
(1,580,759
)
 
(44,396
)
Income from partially owned entities(2)
 
78,865

 
9,149

 
69,716

Loss from real estate fund investments
 
(104,082
)
 
(89,231
)
 
(14,851
)
Interest and other investment income, net
 
21,819

 
17,057

 
4,762

Income (loss) from deferred compensation plan assets
 
11,609

 
(2,480
)
 
14,089

Interest and debt expense
 
(286,623
)
 
(347,949
)
 
61,326

Net gain on transfer to Fifth Avenue and Times Square JV
 
2,571,099

 

 
2,571,099

Purchase price fair value adjustment
 

 
44,060

 
(44,060
)
Net gains on disposition of wholly owned and partially owned assets
 
845,499

 
246,031

 
599,468

Income before income taxes
 
3,437,731

 
459,598

 
2,978,133

Income tax expense
 
(103,439
)
 
(37,633
)
 
(65,806
)
Income from continuing operations
 
3,334,292

 
421,965

 
2,912,327

(Loss) income from discontinued operations
 
(30
)
 
638

 
(668
)
Net income
 
3,334,262

 
422,603

 
2,911,659

Less net loss (income) attributable to noncontrolling interests in:
 
 
 
 
 
 
Consolidated subsidiaries
 
24,547

 
53,023

 
(28,476
)
Operating Partnership
 
(210,872
)
 
(25,672
)
 
(185,200
)
Net income attributable to Vornado
 
3,147,937

 
449,954

 
2,697,983

Preferred share dividends
 
(50,131
)
 
(50,636
)
 
505

Preferred share issuance costs
 

 
(14,486
)
 
14,486

Net income attributable to common shareholders
 
$
3,097,806

 
$
384,832

 
$
2,712,974

 
 
 
 
 
 
 
Capitalized expenditures:
 
 
 
 
 
 
Leasing payroll(3)
 
$

 
$
5,538

 
$
(5,538
)
Development payroll
 
16,014

 
12,120

 
3,894

Interest and debt expense
 
72,200

 
73,166

 
(966
)
________________________________
(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.

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NET INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS BY SEGMENT (unaudited)
(Amounts in thousands)
 
For the Three Months Ended December 31, 2019
 
Total
 
New York
 
Other
Property rentals(1)
$
360,139

 
$
291,139

 
$
69,000

Tenant expense reimbursements(1)
55,233

 
43,654

 
11,579

Amortization of acquired below-market leases, net
4,269

 
4,077

 
192

Straight-lining of rents
(1,233
)
 
(78
)
 
(1,155
)
Total rental revenues
418,408

 
338,792

 
79,616

Fee and other income:
 
 
 
 
 
BMS cleaning fees
31,642

 
33,870

 
(2,228
)
Management and leasing fees
3,479

 
3,225

 
254

Other income
7,439

 
1,739

 
5,700

Total revenues
460,968

 
377,626

 
83,342

Operating expenses
(223,975
)
 
(184,231
)
 
(39,744
)
Depreciation and amortization
(92,926
)
 
(70,051
)
 
(22,875
)
General and administrative
(39,791
)
 
(14,077
)
 
(25,714
)
Expense from deferred compensation plan liability
(3,887
)
 

 
(3,887
)
Transaction related costs, impairment losses and other
(3,223
)
 
411

 
(3,634
)
Total expenses
(363,802
)
 
(267,948
)
 
(95,854
)
Income from partially owned entities
22,726

 
21,370

 
1,356

Loss from real estate fund investments
(90,302
)
 

 
(90,302
)
Interest and other investment income, net
5,889

 
1,529

 
4,360

Income from deferred compensation plan assets
3,887

 

 
3,887

Interest and debt expense
(59,683
)
 
(33,624
)
 
(26,059
)
Net gains (losses) on disposition of wholly owned and partially owned assets
203,835

 
(58
)
 
203,893

Income before income taxes
183,518

 
98,895

 
84,623

Income tax expense
(22,897
)
 
(982
)
 
(21,915
)
Income from continuing operations
160,621

 
97,913

 
62,708

Income from discontinued operations
55

 

 
55

Net income
160,676

 
97,913

 
62,763

Less net loss (income) attributable to noncontrolling interests in consolidated subsidiaries
58,592

 
(2,227
)
 
60,819

Net income attributable to Vornado Realty L.P.
219,268

 
$
95,686

 
$
123,582

Less net income attributable to noncontrolling interests in the Operating Partnership
(13,477
)
 
 
 
 
Preferred unit distributions
(12,574
)
 
 
 
 
Net income attributable to common shareholders
$
193,217

 
 
 
 
For the three months ended December 31, 2018:
 
 
 
 
 
Net income (loss) attributable to Vornado Realty L.P.
$
119,707

 
$
131,564

 
$
(11,857
)
Net income attributable to common shareholders
$
100,494

 
 
 
 
________________________________
(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.


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NET INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS BY SEGMENT (unaudited)
(Amounts in thousands)
 
 
For the Year Ended December 31, 2019
 
 
Total
 
New York
 
Other
Property rentals(1)
 
$
1,528,870

 
$
1,227,300

 
$
301,570

Tenant expense reimbursements(1)
 
228,201

 
184,288

 
43,913

Amortization of acquired below-market leases, net
 
19,830

 
18,910

 
920

Straight-lining of rents
 
(9,679
)
 
(5,508
)
 
(4,171
)
Total rental revenues
 
1,767,222

 
1,424,990

 
342,232

Fee and other income:
 
 
 
 
 
 
BMS cleaning fees
 
124,674

 
133,358

 
(8,684
)
Management and leasing fees
 
13,542

 
13,694

 
(152
)
Other income
 
19,262

 
5,818

 
13,444

Total revenues
 
1,924,700

 
1,577,860

 
346,840

Operating expenses
 
(917,981
)
 
(758,304
)
 
(159,677
)
Depreciation and amortization
 
(419,107
)
 
(328,313
)
 
(90,794
)
General and administrative
 
(169,920
)
 
(59,668
)
 
(110,252
)
Expense from deferred compensation plan liability
 
(11,609
)
 

 
(11,609
)
Transaction related costs, impairment losses and other
 
(106,538
)
 
(100,949
)
 
(5,589
)
Total expenses
 
(1,625,155
)
 
(1,247,234
)
 
(377,921
)
Income from partially owned entities
 
78,865

 
71,622

 
7,243

Loss from real estate fund investments
 
(104,082
)
 

 
(104,082
)
Interest and other investment income, net
 
21,819

 
5,617

 
16,202

Income from deferred compensation plan assets
 
11,609

 

 
11,609

Interest and debt expense
 
(286,623
)
 
(174,368
)
 
(112,255
)
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
 
845,499

 
178,711

 
666,788

Income before income taxes
 
3,437,731

 
2,983,307

 
454,424

Income tax expense
 
(103,439
)
 
(5,167
)
 
(98,272
)
Income from continuing operations
 
3,334,292

 
2,978,140

 
356,152

Loss from discontinued operations
 
(30
)
 

 
(30
)
Net income
 
3,334,262

 
2,978,140

 
356,122

Less net loss (income) attributable to noncontrolling interests in consolidated subsidiaries
 
24,547

 
(20,937
)
 
45,484

Net income attributable to Vornado Realty L.P.
 
3,358,809

 
$
2,957,203

 
$
401,606

Less net income attributable to noncontrolling interests in the Operating Partnership
 
(210,707
)
 
 
 
 
Preferred unit distributions
 
(50,296
)
 
 
 
 
Net income attributable to common shareholders
 
$
3,097,806

 
 
 
 
For the year ended December 31, 2018:
 
 
 
 
 
 
Net income attributable to Vornado Realty L.P.
 
$
475,626

 
$
431,944

 
$
43,682

Net income attributable to common shareholders
 
$
384,832

 
 
 
 
________________________________
(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.



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NET OPERATING INCOME AT SHARE BY SEGMENT (unaudited)
(Amounts in thousands)
 
 
 
 
 
 
 
 
 
 
 
For the Three Months Ended December 31, 2019
 
Total
 
New York(1)
 
Other
Total revenues
$
460,968

 
$
377,626

 
$
83,342

Operating expenses
(223,975
)
 
(184,231
)
 
(39,744
)
NOI - consolidated
236,993

 
193,395

 
43,598

Deduct: NOI attributable to noncontrolling interests in consolidated subsidiaries
(17,417
)
 
(9,885
)
 
(7,532
)
Add: NOI from partially owned entities
85,990

 
82,774

 
3,216

NOI at share
305,566

 
266,284

 
39,282

Non-cash adjustments for straight-line rents, amortization of acquired below-market leases, net, and other
(6,590
)
 
(8,577
)
 
1,987

NOI at share - cash basis
$
298,976

 
$
257,707

 
$
41,269


 
For the Three Months Ended December 31, 2018
 
Total
 
New York
 
Other
Total revenues
$
543,417

 
$
466,554

 
$
76,863

Operating expenses
(254,320
)
 
(206,696
)
 
(47,624
)
NOI - consolidated
289,097

 
259,858

 
29,239

Deduct: NOI attributable to noncontrolling interests in consolidated subsidiaries
(19,771
)
 
(13,837
)
 
(5,934
)
Add: NOI from partially owned entities
60,205

 
49,178

 
11,027

NOI at share
329,531

 
295,199

 
34,332

Non-cash adjustments for straight-line rents, amortization of acquired below-market leases, net, and other
(5,532
)
 
(6,266
)
 
734

NOI at share - cash basis
$
323,999

 
$
288,933

 
$
35,066

 
For the Three Months Ended September 30, 2019
 
Total
 
New York(1)
 
Other
Total revenues
$
465,961

 
$
380,568

 
$
85,393

Operating expenses
(226,359
)
 
(188,159
)
 
(38,200
)
NOI - consolidated
239,602

 
192,409

 
47,193

Deduct: NOI attributable to noncontrolling interests in consolidated subsidiaries
(18,096
)
 
(9,574
)
 
(8,522
)
Add: NOI from partially owned entities
86,024

 
82,649

 
3,375

NOI at share
307,530

 
265,484

 
42,046

Non-cash adjustments for straight-line rents, amortization of acquired below-market leases, net, and other
(4,037
)
 
(5,560
)
 
1,523

NOI at share - cash basis
$
303,493

 
$
259,924

 
$
43,569

________________________________
(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.
See Appendix page vii for details of NOI at share components.

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NET OPERATING INCOME AT SHARE BY SEGMENT (unaudited)
(Amounts in thousands)
 
 
 
 
 
 
 
 
 
 
 
For the Year Ended December 31, 2019
 
Total
 
New York(1)
 
Other
Total revenues
$
1,924,700

 
$
1,577,860

 
$
346,840

Operating expenses
(917,981
)
 
(758,304
)
 
(159,677
)
NOI - consolidated
1,006,719

 
819,556

 
187,163

Deduct: NOI attributable to noncontrolling interests in consolidated subsidiaries
(69,332
)
 
(40,896
)
 
(28,436
)
Add: NOI from partially owned entities
322,390

 
294,168

 
28,222

NOI at share
1,259,777

 
1,072,828

 
186,949

Non-cash adjustments for straight-line rents, amortization of acquired below-market leases, net, and other
(6,060
)
 
(12,318
)
 
6,258

NOI at share - cash basis
$
1,253,717

 
$
1,060,510

 
$
193,207


 
For the Year Ended December 31, 2018
 
Total
 
New York
 
Other
Total revenues
$
2,163,720

 
$
1,836,036

 
$
327,684

Operating expenses
(963,478
)
 
(806,464
)
 
(157,014
)
NOI - consolidated
1,200,242

 
1,029,572

 
170,670

Deduct: NOI attributable to noncontrolling interests in consolidated subsidiaries
(71,186
)
 
(48,490
)
 
(22,696
)
Add: NOI from partially owned entities
253,564

 
195,908

 
57,656

NOI at share
1,382,620

 
1,176,990

 
205,630

Non-cash adjustments for straight-line rents, amortization of acquired below-market leases, net, and other
(44,704
)
 
(45,427
)
 
723

NOI at share - cash basis
$
1,337,916

 
$
1,131,563

 
$
206,353

________________________________
(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.
See Appendix page vii for details of NOI at share components.


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NET OPERATING INCOME AT SHARE BY SUBSEGMENT (unaudited)
(Amounts in thousands)
 
 
 
 
 
 
 
 
 
 
 
For the Three Months Ended
 
For the Year Ended
December 31,
 
December 31,
 
September 30,
2019
 
 
2019
 
2018
 
 
2019
 
2018
NOI at share:
 
 
 
 
 
 
 
 
 
New York:
 
 
 
 
 
 
 
 
 
Office(1)
$
183,925

 
$
186,832

 
$
177,469

 
$
724,526

 
$
743,001

Retail(1)
59,728

 
85,549

 
68,159

 
273,217

 
353,425

Residential
5,835

 
5,834

 
5,575

 
23,363

 
23,515

Alexander's Inc ("Alexander's")
10,626

 
11,023

 
11,269

 
44,325

 
45,133

Hotel Pennsylvania
6,170

 
5,961

 
3,012

 
7,397

 
11,916

Total New York
266,284

 
295,199

 
265,484

 
1,072,828

 
1,176,990

 
 
 
 
 
 
 
 
 
 
Other:
 
 
 
 
 
 
 
 
 
theMART
22,712

 
10,981

 
24,862

 
102,071

 
90,929

555 California Street
14,533

 
14,005

 
15,265

 
59,657

 
54,691

Other investments
2,037

 
9,346

 
1,919

 
25,221

 
60,010

Total Other
39,282

 
34,332

 
42,046

 
186,949

 
205,630

 
 
 
 
 
 
 
 
 
 
NOI at share
$
305,566

 
$
329,531

 
$
307,530

 
$
1,259,777

 
$
1,382,620

NOI at share - cash basis:
 
 
 
 
 
 
 
 
 
New York:
 
 
 
 
 
 
 
 
 
Office(1)
$
180,762

 
$
185,624

 
$
174,796

 
$
718,734

 
$
726,108

Retail(1)
54,357

 
80,515

 
65,636

 
267,655

 
324,219

Residential
5,763

 
5,656

 
5,057

 
21,894

 
22,076

Alexander's
10,773

 
11,129

 
11,471

 
45,093

 
47,040

Hotel Pennsylvania
6,052

 
6,009

 
2,964

 
7,134

 
12,120

Total New York
257,707

 
288,933

 
259,924

 
1,060,510

 
1,131,563

 
 
 
 
 
 
 
 
 
 
Other:
 
 
 
 
 
 
 
 
 
theMART
24,646

 
12,758

 
26,588

 
108,130

 
94,070

555 California Street
14,491

 
13,784

 
15,325

 
60,156

 
53,488

Other investments
2,132

 
8,524

 
1,656

 
24,921

 
58,795

Total Other
41,269

 
35,066

 
43,569

 
193,207

 
206,353

 
 
 
 
 
 
 
 
 
 
NOI at share - cash basis
$
298,976

 
$
323,999

 
$
303,493

 
$
1,253,717

 
$
1,337,916

________________________________
(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.



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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 December 31, 2019 compared to December 31, 2018
7.1
%
 
2.6
%
 
114.3
 %
(3) 
3.3
 %
 
Year ended December 31, 2019 compared to December 31, 2018
2.1
%
 
0.5
%
 
15.9
 %
(4) 
9.7
 %
 
Three months ended December 31, 2019 compared to September 30, 2019
1.7
%
 
3.0
%
 
(7.4
)%
 
(4.8
)%
 
 
 
 
 
 
 
 
 
Same store NOI at share - cash basis % increase (decrease)(1):
 
 
 
 
 
 
 
 
Three months ended December 31, 2019 compared to December 31, 2018
6.6
%
 
1.7
%
 
100.0
 %
(3) 
4.1
 %
 
Year ended December 31, 2019 compared to December 31, 2018
3.6
%
 
1.6
%
 
18.6
 %
(4) 
12.7
 %
 
Three months ended December 31, 2019 compared to September 30, 2019
2.6
%
 
3.9
%
 
(4.8
)%
 
(5.4
)%
________________________________
(1)
See pages viii through xiii in the Appendix for same store NOI at share and same store NOI at share - cash basis reconciliations.
 
 
 
 
 
(2)
Excluding Hotel Pennsylvania, same store NOI at share % increase:
 
 
 
Three months ended December 31, 2019 compared to December 31, 2018
2.6
%
 
 
Year ended December 31, 2019 compared to December 31, 2018
0.9
%
 
 
Three months ended December 31, 2019 compared to September 30, 2019
1.7
%
 
 
 
 
 
 
Excluding Hotel Pennsylvania, same store NOI at share - cash basis % increase:
 
 
 
Three months ended December 31, 2019 compared to December 31, 2018
1.8
%
 
 
Year ended December 31, 2019 compared to December 31, 2018
2.2
%
 
 
Three months ended December 31, 2019 compared to September 30, 2019
2.6
%
 
 
 
 
 
(3)
The three months ended December 31, 2018 includes an additional $12,124,000 real estate tax expense accrual due to an increase in the tax-assessed value of theMART.
(4)
Primarily due to $11,131,000 of tenant reimbursement revenue received in 2019 related to real estate tax expense accrued in 2018.

NOI AT SHARE BY REGION (unaudited)
 
For the Three Months Ended December 31,
 
For the Year Ended December 31,
 
2019
 
2018
 
2019
 
2018
Region:
 
 
 
 
 
 
 
New York City metropolitan area
88
%
 
92
%
 
87
%
 
89
%
Chicago, IL
7
%
 
3
%
 
8
%
 
7
%
San Francisco, CA
5
%
 
5
%
 
5
%
 
4
%
 
100
%
 
100
%
 
100
%
 
100
%




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CONSOLIDATED BALANCE SHEETS (unaudited)
(Amounts in thousands)
 
As of
 
Increase
(Decrease)
 
December 31, 2019
 
December 31, 2018
 
ASSETS
 
 
 
 
 
Real estate, at cost:
 
 
 
 
 
Land
$
2,591,261

 
$
3,306,280

 
$
(715,019
)
Buildings and improvements
7,953,163

 
10,110,992

 
(2,157,829
)
Development costs and construction in progress
1,490,614

 
2,266,491

 
(775,877
)
Moynihan Train Hall development expenditures
914,960

 
445,693

 
469,267

Leasehold improvements and equipment
124,014

 
108,427

 
15,587

Total
13,074,012

 
16,237,883

 
(3,163,871
)
Less accumulated depreciation and amortization
(3,015,958
)
 
(3,180,175
)
 
164,217

Real estate, net
10,058,054

 
13,057,708

 
(2,999,654
)
Right-of-use assets
379,546

 

 
379,546

Cash and cash equivalents
1,515,012

 
570,916

 
944,096

Restricted cash
92,119

 
145,989

 
(53,870
)
Marketable securities
33,313

 
152,198

 
(118,885
)
Tenant and other receivables
95,733

 
73,322

 
22,411

Investments in partially owned entities
3,999,165

 
858,113

 
3,141,052

Real estate fund investments
222,649

 
318,758

 
(96,109
)
220 Central Park South condominium units ready for sale
408,918

 
99,627

 
309,291

Receivable arising from the straight-lining of rents
742,206

 
935,131

 
(192,925
)
Deferred leasing costs, net
353,986

 
400,313

 
(46,327
)
Identified intangible assets, net
30,965

 
136,781

 
(105,816
)
Other assets
355,347

 
431,938

 
(76,591
)
Total Assets
$
18,287,013

 
$
17,180,794

 
$
1,106,219

LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND EQUITY
 
 
 
 
 
Liabilities:
 
 
 
 
 
Mortgages payable, net
$
5,639,897

 
$
8,167,798

 
$
(2,527,901
)
Senior unsecured notes, net
445,872

 
844,002

 
(398,130
)
Unsecured term loan, net
745,840

 
744,821

 
1,019

Unsecured revolving credit facilities
575,000

 
80,000

 
495,000

Lease liabilities
498,254

 

 
498,254

Moynihan Train Hall obligation
914,960

 
445,693

 
469,267

Special dividend/distribution payable on January 15, 2020
398,292

 

 
398,292

Accounts payable and accrued expenses
440,049

 
430,976

 
9,073

Deferred revenue
59,429

 
167,730

 
(108,301
)
Deferred compensation plan
103,773

 
96,523

 
7,250

Other liabilities
265,754

 
311,806

 
(46,052
)
Total liabilities
10,087,120

 
11,289,349

 
(1,202,229
)
Redeemable noncontrolling interests
888,915

 
783,562

 
105,353

Shareholders' equity
6,732,030

 
4,465,231

 
2,266,799

Noncontrolling interests in consolidated subsidiaries
578,948

 
642,652

 
(63,704
)
Total liabilities, redeemable noncontrolling interests and equity
$
18,287,013

 
$
17,180,794

 
$
1,106,219


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LEASING ACTIVITY (unaudited)
(Square feet in thousands)
The leasing activity and related statistics in the table below are based on leases signed during the period and are not intended to coincide with the commencement of rental revenue in accordance with accounting principles generally accepted in the United States of America ("GAAP"). Second generation relet space represents square footage that has not been vacant for more than nine months and tenant improvements and leasing commissions are based on our share of square feet leased during the period.
 
 
New York
 
 
 
555 California Street
 
 
Office
 
Retail
 
theMART
 
Three Months Ended December 31, 2019
 
 
 
 
 
 
 
 
Total square feet leased
 
173

 
94

 
52

 
30

Our share of square feet leased:
 
117

 
73

 
52

 
21

Initial rent(1)
 
$
101.67

 
$
233.55

 
$
50.26

 
$
94.00

Weighted average lease term (years)
 
6.6

 
9.4

 
5.0

 
5.0

Second generation relet space:
 
 
 
 
 
 
 
 
Square feet
 
54

 
52

 
50

 
21

GAAP basis:
 
 
 
 
 
 
 
 
Straight-line rent(2)
 
$
93.62

 
$
309.06

 
$
50.96

 
$
99.81

Prior straight-line rent
 
$
97.06

 
$
308.17

 
$
49.41

 
$
49.77

Percentage (decrease) increase
 
(3.5
)%
 
0.3
%
 
3.1
 %
 
100.5
%
Cash basis (non-GAAP):
 
 
 
 
 
 
 
 
Initial rent(1)
 
$
94.90

 
$
335.00

 
$
50.02

 
$
94.00

Prior escalated rent
 
$
100.06

 
$
300.90

 
$
51.21

 
$
54.49

Percentage (decrease) increase
 
(5.2
)%
 
11.3
%
 
(2.3
)%
 
72.5
%
Tenant improvements and leasing commissions:
 
 
 
 
 
 
 
 
Per square foot
 
$
89.30

 
$
100.79

 
$
26.91

 
$
36.38

Per square foot per annum
 
$
13.53

 
$
10.72

 
$
5.38

 
$
7.28

Percentage of initial rent
 
13.3
 %
 
4.6
%
 
10.7
 %
 
7.7
%
________________________________
See notes on following page.



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LEASING ACTIVITY (unaudited)
(Square feet in thousands)
The leasing activity and related statistics in the table below are based on leases signed during the period and are not intended to coincide with the commencement of rental revenue in accordance with GAAP. Second generation relet space represents square footage that has not been vacant for more than nine months and tenant improvements and leasing commissions are based on our share of square feet leased during the period.
 
 
New York
 
 
 
555 California Street
 
 
Office
 
Retail
 
theMART
 
Year Ended December 31, 2019
 
 
 
 
 
 
 
 
Total square feet leased
 
987

 
238

 
286

 
172

Our share of square feet leased:
 
793

 
207

 
286

 
120

Initial rent(1)
 
$
82.17

 
$
175.35

 
$
49.43

 
$
88.70

Weighted average lease term (years)
 
7.7

 
10.9

 
6.1

 
6.1

Second generation relet space:
 
 
 
 
 
 
 
 
Square feet
 
553

 
171

 
280

 
115

GAAP basis:
 
 
 
 
 
 
 
 
Straight-line rent(2)
 
$
76.12

 
$
198.05

 
$
48.71

 
$
93.86

Prior straight-line rent
 
$
72.18

 
$
175.46

 
$
44.01

 
$
56.93

Percentage increase
 
5.5
%
 
12.9
%
 
10.7
%
 
64.9
%
Cash basis (non-GAAP):
 
 
 
 
 
 
 
 
Initial rent(1)
 
$
77.51

 
$
197.12

 
$
49.25

 
$
88.54

Prior escalated rent
 
$
74.10

 
$
179.49

 
$
47.08

 
$
64.11

Percentage increase
 
4.6
%
 
9.8
%
 
4.6
%
 
38.1
%
Tenant improvements and leasing commissions:
 
 
 
 
 
 
 
 
Per square foot
 
$
83.82

 
$
68.59

 
$
33.87

 
$
53.93

Per square foot per annum
 
$
10.89

 
$
6.29

 
$
5.55

 
$
8.84

Percentage of initial rent
 
13.3
%
 
3.6
%
 
11.2
%
 
10.0
%
________________________________
(1)
Represents the cash basis weighted average starting rent per square foot, which is generally indicative of market rents. Most leases include free rent and periodic step-ups in rent which are not included in the initial cash basis rent per square foot but are included in the GAAP basis straight-line rent per square foot.
(2)
Represents the GAAP basis weighted average rent per square foot that is recognized over the term of the respective leases and includes the effect of free rent and periodic step-ups in rent.



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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
 
39,000

 
$
2,593,000

 
$
66.49

 
0.2
%
 
 
 
 
 
 
 
 
 
 
 
First Quarter 2020
 
580,000

 
36,415,000

 
62.78

 
3.2
%
 
Second Quarter 2020
 
168,000

 
13,145,000

 
78.24

 
1.1
%
 
Third Quarter 2020
 
193,000

 
16,503,000

 
85.51

 
1.4
%
 
Fourth Quarter 2020
 
149,000

 
10,536,000

 
70.71

 
0.9
%
 
Total 2020
 
1,090,000

 
76,599,000

 
70.27

 
6.6
%
 
2021
 
1,106,000

 
86,140,000

 
77.88

 
7.5
%
 
2022
 
668,000

 
43,998,000

 
65.87

 
3.9
%
 
2023
 
1,986,000

 
166,729,000

 
83.95

 
14.5
%
 
2024
 
1,484,000

 
123,761,000

 
83.40

 
10.8
%
 
2025
 
797,000

(2) 
62,199,000

 
78.04

 
5.5
%
 
2026
 
1,205,000

 
92,434,000

 
76.71

 
8.1
%
 
2027
 
1,094,000

 
79,658,000

 
72.81

 
6.9
%
 
2028
 
890,000

 
62,039,000

 
69.71

 
5.4
%
 
2029
 
679,000

 
55,356,000

 
81.53

 
4.9
%
 
Thereafter
 
4,377,000

 
294,859,000

 
67.37

 
25.7
%
 
 
 
 
 
 
 
 
 
 
Retail:
Month to Month
 
29,000

 
$
6,911,000

 
$
238.31

 
2.2
%
 
 
 
 
 
 
 
 
 
 
 
First Quarter 2020
 
24,000

 
5,509,000

 
229.54

 
1.8
%
 
Second Quarter 2020
 
31,000

 
4,384,000

 
141.42

 
1.4
%
 
Third Quarter 2020
 
6,000

 
2,347,000

 
391.16

 
0.8
%
 
Fourth Quarter 2020
 
43,000

 
10,456,000

 
243.16

 
3.4
%
 
Total 2020
 
104,000

 
22,696,000

 
218.24

 
7.4
%
 
2021
 
82,000

 
9,342,000

 
113.93

 
3.0
%
 
2022
 
25,000

 
6,713,000

 
268.52

 
2.2
%
 
2023
 
159,000

 
35,669,000

 
224.33

 
11.5
%
 
2024
 
187,000

 
44,697,000

 
239.02

 
14.4
%
 
2025
 
37,000

 
12,473,000

 
337.11

 
4.0
%
 
2026
 
71,000

 
26,134,000

 
368.08

 
8.4
%
 
2027
 
29,000

 
20,408,000

 
703.72

 
6.6
%
 
2028
 
25,000

 
12,750,000

 
510.00

 
4.1
%
 
2029
 
201,000

 
39,579,000

 
196.91

 
12.8
%
 
Thereafter
 
449,000

 
72,467,000

 
161.40

 
23.4
%
________________________________
(1)
Excludes storage, vacancy and other.
(2)
Excludes 492,000 square feet leased at 909 Third Avenue to the U.S. Post Office through 2038 (including three 5-year renewal options) for which the annual escalated rent is $13.51 per square foot.


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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
 
11,000

 
$
779,000

 
$
70.82

 
0.5
%
 
 
 
 
 
 
 
 
 
 
 
First Quarter 2020
 
118,000

 
5,398,000

 
45.75

 
3.2
%
 
Second Quarter 2020
 
38,000

 
2,032,000

 
53.47

 
1.2
%
 
Third Quarter 2020
 
76,000

 
3,751,000

 
49.36

 
2.2
%
 
Fourth Quarter 2020
 
49,000

 
2,524,000

 
51.51

 
1.5
%
 
Total 2020
 
281,000

 
13,705,000

 
48.77

 
8.1
%
 
2021
 
294,000

 
14,527,000

 
49.41

 
8.7
%
 
2022
 
614,000

 
30,026,000

 
48.90

 
18.0
%
 
2023
 
300,000

 
15,433,000

 
51.44

 
9.2
%
 
2024
 
337,000

 
16,649,000

 
49.40

 
10.0
%
 
2025
 
315,000

 
16,773,000

 
53.25

 
10.0
%
 
2026
 
295,000

 
14,466,000

 
49.04

 
8.8
%
 
2027
 
108,000

 
5,542,000

 
51.31

 
3.3
%
 
2028
 
642,000

 
27,882,000

 
43.43

 
16.7
%
 
2029
 
73,000

 
3,440,000

 
47.12

 
2.1
%
 
Thereafter
 
168,000

 
7,694,000

 
45.80

 
4.6
%
________________________________
(1)    Excludes storage, vacancy and other.




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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
%
 
 
 
 
 
 
 
 
 
 
 
First Quarter 2020
 

 

 

 
0.0
%
 
Second Quarter 2020
 
9,000

 
897,000

 
99.67

 
0.9
%
 
Third Quarter 2020
 
3,000

 
272,000

 
90.67

 
0.3
%
 
Fourth Quarter 2020
 
7,000

 
664,000

 
94.86

 
0.7
%
 
Total 2020
 
19,000

 
1,833,000

 
91.65

 
1.9
%
 
2021
 
76,000

 
5,614,000

 
73.87

 
5.6
%
 
2022
 
36,000

 
2,923,000

 
81.19

 
2.9
%
 
2023
 
133,000

 
10,013,000

 
75.29

 
9.9
%
 
2024
 
51,000

 
4,895,000

 
95.98

 
4.9
%
 
2025
 
432,000

 
33,430,000

 
77.38

 
33.2
%
 
2026
 
140,000

 
10,968,000

 
78.34

 
10.9
%
 
2027
 
69,000

 
6,005,000

 
87.03

 
6.0
%
 
2028
 
20,000

 
1,534,000

 
76.70

 
1.4
%
 
2029
 
74,000

 
6,874,000

 
92.89

 
6.8
%
 
Thereafter
 
194,000

 
16,670,000

 
85.93

 
16.5
%
________________________________
(1)    Excludes storage, vacancy and other.




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COMPONENTS OF NET ASSET VALUE (AT SHARE) (NON-GAAP) (unaudited)
 
 
(unaudited and in millions, except square feet, shares and per share amounts)
 
 
 
For the Year Ended December 31, 2019
 
 
 
 
 
 
NOI at Share - Cash Basis
 
Adjustment for Transfer of 45.4% Interest in Fifth Avenue and Times Square JV(1)
 
Other Adjustments
 
Pro Forma NOI at Share -
Cash Basis
 
Cap Rate(2)
 
Value
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Office:
 
 
 
 
 
 
 
 
 
 
 
 
New York
$
719

 
$
(7
)
 
$
(34
)
(3) 
$
678

 
 
 
 
 
theMART
108

 

 

 
108

 
 
 
 
 
555 California Street
60

 

 

 
60

 
 
 
 
 
Total Office
887

 
(7
)
 
(34
)
 
846

 
4.50
%
 
$
18,800

 
New York - Retail
268

 
(26
)
 
(22
)
(4) 
220

 
4.50
%
 
4,889

 
New York - Residential
22

 

 

 
22

 
4.00
%
 
550

 
 
$
1,177

 
$
(33
)
 
$
(56
)
 
$
1,088

 
 
 
24,239

 
Less: Market management fee (27,186,000 square feet in service at share at $0.50 per square foot) at a 4.50% cap rate
 
 
 
 
 
 
 
 
 
 
(302
)
 
 
 
 
 
 
 
 
 
 
 
 
$
23,937

 
Other asset values:
 
 
Preferred equity investment in Fifth Avenue and Times Square JV
$
1,828

 
220 Central Park South - incremental value from estimated future proceeds, net
1,200

 
Cash and cash equivalents, restricted cash and marketable securities(5)
1,242

 
Alexander's Inc. ("Alexander's") (1,654,068 shares at $330.35 per share as of December 31, 2019)
546

 
Hotel Pennsylvania
500

 
BMS (2019 NOI of $28 at a 7.0x multiple)
196

 
Real estate fund investments (VNO's share at fair value)
31

 
Other assets
724

 
Construction in progress (at 110% of book value)
1,104

 
Total of other asset values
$
7,371

 
 
 
 
Liabilities (see following page)
$
(11,805
)
 
 
 
 
NAV
$
19,503

(2) 
NAV per share
 
 
(203.5 million shares on an OP basis as of December 31, 2019)
$
96

(2) 
____________________
See notes on following page.

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COMPONENTS OF NET ASSET VALUE (AT SHARE) (NON-GAAP) (unaudited)
(unaudited and in millions)
 
Liabilities
 
As of
December 31, 2019
 
Adjustments
 
Net
Consolidated contractual mortgage notes payable, net of noncontrolling interests' share
$
5,187

 
$

 
$
5,187

Non-consolidated real estate debt
2,803

 
(316
)
(6) 
2,487

Corporate unsecured debt
450

 

 
450

Revolver/term loan
1,325

 

 
1,325

Other liabilities
889

 
(398
)
(5) 
491

Our share of preferred equity liability of Fifth Avenue and Times Square JV (51.5% of $1,828)
941

 

 
941

Perpetual preferred units (at redemption value)
924

 

 
924

Total liabilities
$
12,519

 
$
(714
)
 
$
11,805

________________________________________
(1)
Adjusts January 1, 2019 through April 18, 2019 to reflect new ownership interests in the properties contributed to Fifth Avenue and Times Square JV.
(2)
Capitalization Rate ("Cap Rate") means the rate applied to pro-forma cash basis NOI to determine an estimate of the fair value of our properties. The Cap Rates reflected in this financial supplement are based on management’s estimates, which are inherently uncertain. Other asset values are also estimates made by management, which are inherently uncertain. There can be no assurance that management’s estimates accurately reflect the fair value of our assets, and actual value may differ materially.
(3)
Adjustment to deduct $28 of BMS NOI and $6 of 330 Madison Avenue cash NOI (sold in July 2019).
(4)
Adjusting for Topshop at 608 Fifth Avenue and 478-486 Broadway, the sale of 3040 M Street and Forever 21 rent reduction at 1540 Broadway.
(5)
Below is a reconciliation of cash and cash equivalents, restricted cash and marketable securities from our consolidated balance sheet to the pro forma amounts included in NAV:
 
As of
December 31, 2019
Cash and cash equivalents
$
1,515

Escrow deposits and restricted cash
92

Marketable securities
33

Cash and cash equivalents, restricted cash and marketable securities
1,640

Pro forma adjustments:
 
Special dividend related to Fifth Avenue and Times Square JV transaction and sales of 330 Madison Avenue and 3040 M Street - accrued in "other liabilities" at December 31, 2019
(398
)
 
$
1,242

(6)
Excludes our $316 share of debt of Alexander's, as it is presented on an equity basis in other asset values.



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CAPITAL STRUCTURE (unaudited)
(Amounts in thousands, except per share and unit amounts)
 
 
 
 
 
 
 
As of
December 31, 2019
 
 
Debt (contractual balances) (non-GAAP):
 
 
 
 
 
 
 
Consolidated debt (1):
 
 
 
 
 
 
 
Mortgages payable
 
 
 
 
$
5,670,016

 
 
Senior unsecured notes
 
 
 
 
450,000

 
 
$750 Million unsecured term loan
 
 
 
 
750,000

 
 
$2.75 Billion unsecured revolving credit facilities
 
 
 
 
575,000

 
 
 
 
 
 
 
7,445,016

 
 
Pro rata share of debt of non-consolidated entities(2)(3)
 
 
 
 
2,802,859

 
 
Less: Noncontrolling interests' share of consolidated debt
        (primarily 1290 Avenue of the Americas and 555 California Street)
 
 
 
 
(483,325
)
 
 
 
 
 
 
 
9,764,550

 
(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
 
December 31, 2019 Common Share Price
 
 
 
 
Equity:
 
 
 
 
 
 
 
Common shares
190,986

 
$
66.50

 
12,700,569

 
 
Class A units
12,151

 
66.50

 
808,042

 
 
Convertible share equivalents:
 
 
 
 
 
 
 
Equity awards - unit equivalents
1,148

 
66.50

 
76,342

 
 
D-13 preferred units
702

 
66.50

 
46,683

 
 
G1-G4 units
58

 
66.50

 
3,857

 
 
Series A preferred shares
31

 
66.50

 
2,062

 
 
 
 
 
 

 
13,637,555

 
(C)
Total Market Capitalization (A+B+C)
 
 
 

 
$
24,326,140

 
 
________________________________
(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.

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COMMON SHARES DATA (NYSE: VNO) (unaudited)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Vornado Realty Trust common shares are traded on the New York Stock Exchange ("NYSE") under the symbol VNO. Below is a summary of performance and dividends for VNO common shares (based on NYSE prices):
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fourth Quarter 2019
 
Third Quarter
2019
 
Second Quarter
2019
 
First Quarter
2019
High price
$
67.95

 
$
66.72

 
$
70.45

 
$
70.54

Low price
$
61.78

 
$
58.60

 
$
62.87

 
$
59.95

Closing price - end of quarter
$
66.50

 
$
63.67

 
$
64.10

 
$
67.44

 
 
 
 
 
 
 
 
 
 
 
 
Annualized quarterly dividend per share
$
2.64

 
$
2.64

 
$
2.64

 
$
2.64

Special dividend
 
1.95

(1) 
 

 
 

 
 

Total
$
4.59

 
$
2.64

 
$
2.64

 
$
2.64

 
 
 
 
 
 
 
 
 
 
 
 
Annualized dividend yield - on closing price:
 
 
 
 
 
 
 
 
 
 
 
Quarterly dividends
 
4.0
%
 
 
4.1
%
 
 
4.1
%
 
 
3.9
%
Total
 
6.9
%
 
 
4.1
%
 
 
4.1
%
 
 
3.9
%
 
 
 
 
 
 
 
 
 
 
 
 
Outstanding shares, Class A units and convertible preferred units as converted (in thousands)
 
205,076

 
 
205,024

 
 
205,011

 
 
204,336

 
 
 
 
 
 
 
 
 
 
 
 
Closing market value of outstanding shares, Class A units and convertible preferred units as converted
$
13.6 Billion

 
$
13.1 Billion

 
$
13.1 Billion

 
$
13.8 Billion

________________________________
(1)
On December 18, 2019, Vornado's Board of Trustees declared a special dividend of $1.95 per share to common shareholders of record on December 30, 2019.



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DEBT ANALYSIS (unaudited)
 
 
 
 
 
 
 
 
 
 
 
(Amounts in thousands)
 
 
 
 
 
 
 
 
 
 
 
 
As of December 31, 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)
$
7,445,016

 
3.46%
 
$
1,643,500

 
3.09%
 
$
5,801,516

 
3.57%
Pro rata share of debt of non-consolidated entities(2)(3)
2,802,859

 
3.62%
 
1,441,690

 
3.34%
 
1,361,169

 
3.93%
Total
10,247,875

 
3.51%
 
3,085,190

 
3.21%
 
7,162,685

 
3.63%
Less: Noncontrolling interests' share of consolidated debt (primarily 1290 Avenue of the Americas and 555 California Street)
(483,325
)
 
 
 
(33,902
)
 
 
 
(449,423
)
 
 
Company's pro rata share of total debt
$
9,764,550

 
3.48%
 
$
3,051,288

 
3.20%
 
$
6,713,262

 
3.61%
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%
 
38%
 
Less than 60%
 
28%
Secured debt/total assets
Less than 50%
 
28%
 
Less than 50%
 
23%
Interest coverage ratio (annualized combined EBITDA to annualized interest expense)
Greater than 1.50
 
2.85
 
 
 
N/A
Fixed charge coverage
 
 
N/A
 
Greater than 1.40
 
2.84
Unencumbered assets/unsecured debt
Greater than 150%
 
564%
 
 
 
N/A
Unsecured debt/cap value of unencumbered assets
 
 
N/A
 
Less than 60%
 
10%
Unencumbered coverage ratio
 
 
N/A
 
Greater than 1.50
 
8.91
Unencumbered EBITDA (non-GAAP):(5)
Q4 2019
 
 
Annualized
 
New York
$
303,316

 
Other
30,144

 
Total
$
333,460

 
________________________________
(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 terms of the senior unsecured notes due 2025 and 6.0% under the terms of the unsecured revolving credit facilities and unsecured term loan.




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DEBT MATURITIES (CONTRACTUAL BALANCES) (NON-GAAP) (unaudited)
(Amounts in thousands)
Property
 
Maturity
Date (1)
 
Spread over
LIBOR
 
Interest
Rate
 
2020
 
2021
 
2022
 
2023
 
2024
 
Thereafter
 
Total
PENN11
 
12/20
 
 
 
3.95%
 
$
450,000

 
$

 
$

 
$

 
$

 
$

 
$
450,000

Borgata Land
 
02/21
 
 
 
5.14%
 

 
53,441

 

 

 

 

 
53,441

770 Broadway
 
03/21
 
 
 
2.56%
(2) 

 
700,000

 

 

 

 

 
700,000

909 Third Avenue
 
05/21
 
 
 
3.91%
 

 
350,000

 

 

 

 

 
350,000

555 California Street
 
09/21
 
 
 
5.10%
 

 
548,075

 

 

 

 

 
548,075

theMART
 
09/21
 
 
 
2.70%
 

 
675,000

 

 

 

 

 
675,000

1290 Avenue of the Americas
 
11/22
 
 
 
3.34%
 

 

 
950,000

 

 

 

 
950,000

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

 

 

 

 

 

 

$750 Million unsecured term loan
 
02/24
 
 
 
3.87%
(3)

 

 

 

 
750,000

 

 
750,000

435 Seventh Avenue - retail
 
02/24
 
L+130
 
3.00%
 

 

 

 

 
95,696

 

 
95,696

$1.5 Billion unsecured revolving credit facility
 
03/24
 
L+90
 
2.70%
(4)

 

 

 

 
575,000

 

 
575,000

150 West 34th Street
 
05/24
 
L+188
 
3.59%
 

 

 

 

 
205,000

 

 
205,000

606 Broadway
 
09/24
 
L+180
 
3.52%
 

 

 

 

 
67,804

 

 
67,804

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
 
3.11%
 

 

 

 

 

 
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
 
3.25%
 

 

 

 

 

 
580,000

 
580,000

350 Park Avenue
 
01/27
 
 
 
3.92%
 

 

 

 

 

 
400,000

 
400,000

 
 
 
 
 
 
 
 
$
450,000

 
$
2,326,516

 
$
950,000

 
$

 
$
1,693,500

 
$
2,025,000

 
$
7,445,016

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Weighted average rate
 
 
 
 
 
 
 
3.95
%
 
3.46
%
 
3.34
%
 
%
 
3.38
%
 
3.47
%
 
3.46
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fixed rate debt
 
 
 
 
 
 
 
$
450,000

 
$
2,326,516

 
$
950,000

 
$

 
$
750,000

 
$
1,325,000

 
$
5,801,516

Fixed weighted average rate expiring
 
 
 
 
 
 
 
3.95
%
 
3.46
%
 
3.34
%
 
%
 
3.87
%
 
3.60
%
 
3.57
%
Floating rate debt
 
 
 
 
 
 
 
$

 
$

 
$

 
$

 
$
943,500

 
$
700,000

 
$
1,643,500

Floating weighted average rate expiring
 
 
 
 
 
 
 
%
 
%
 
%
 
%
 
2.99
%
 
3.23
%
 
3.09
%
________________________________
(1)
Represents the extended maturity for certain loans in which we have the unilateral right to extend.
(2)
Pursuant to an existing swap agreement, the loan bears interest at 2.56% through September 2020. The rate was swapped from LIBOR plus 1.75% (3.46% as of December 31, 2019).
(3)
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% (2.80% as of December 31, 2019).
(4)
On September 27, 2019, we drew $575,000 to pay down our PENN2 mortgage loan which was scheduled to mature in December 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% (3.52% as of December 31, 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% (3.44% as of December 31, 2019).



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 https://cdn.kscope.io/6b76d8e44602142e0060a4e1928a397d-vornadologoa11.jpg

UNCONSOLIDATED JOINT VENTURES (unaudited)
 
 
 
 
 
 
(Amounts in thousands)
 
 
 
 
 
 
Joint Venture Name
 
Asset
Category
 
Percentage
Ownership at
December 31, 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%
 
$
3,291,231

 
$
461,461

 
$
950,000

 
Various
 
Various
 
Various
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Alexander's
 
Office/Retail
 
32.4%
 
98,543

 
315,847

(3) 
974,836

 
Various
 
Various
 
Various
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Partially owned office buildings/land:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
One Park Avenue
 
Office/Retail
 
55.0%
 
140,134

 
165,000

 
300,000

 
03/21
 
L+175
 
3.46%
650 Madison Avenue
 
Office/Retail
 
20.1%
 
101,990

 
161,024

 
800,000

 
12/29
 
N/A
 
3.49%
280 Park Avenue
 
Office/Retail
 
50.0%
 
100,059

 
600,000

 
1,200,000

 
09/24
 
L+173
 
3.44%
512 West 22nd Street
 
Office
 
55.0%
 
60,263

 
60,261

 
109,565

 
06/24
 
L+200
 
3.72%
West 57th Street properties
 
Office/Retail/Land
 
50.0%
 
43,469

 
10,000

 
20,000

 
12/22
 
L+160
 
3.31%
825 Seventh Avenue
 
Office
 
50.0%
 
9,844

 
15,944

 
31,889

 
07/23
 
L+165
 
3.40%
61 Ninth Avenue
 
Office/Retail
 
45.1%
 
4,253

 
75,543

 
167,500

 
01/26
 
L+135
 
3.07%
Other
 
Office/Retail
 
Various
 
4,097

 
17,465

 
50,150

 
Various
 
Various
 
Various

 

 

 


 


 


 

 

 

Other equity method investments:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Independence Plaza
 
Residential/Retail
 
50.1%
 
65,220

 
338,175

 
675,000

 
07/25
 
N/A
 
4.25%
Rosslyn Plaza
 
Office/Residential
 
43.7% to 50.4%
 
31,741

 
19,591

 
38,862

 
06/22
 
L+195
 
3.66%
Other
 
Various
 
Various
 
48,321

 
91,673

 
576,365

 
Various
 
Various
 
Various
 
 
 
 
 
 
$
3,999,165

 
$
2,331,984

 
$
5,894,167

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
7 West 34th Street
 
Office/Retail
 
53.0%
 
(54,004
)
(4) 
159,000

 
300,000

 
06/26
 
N/A
 
3.65%
85 Tenth Avenue
 
Office/Retail
 
49.9%
 
(6,186
)
(4) 
311,875

 
625,000

 
12/26
 
N/A
 
4.55%
 
 
 
 
 
 
$
(60,190
)
 
$
470,875

 
$
925,000

 
 
 
 
 
 
________________________________
(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)
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 negative basis results from distributions in excess of our investment.



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 https://cdn.kscope.io/6b76d8e44602142e0060a4e1928a397d-vornadologoa11.jpg

UNCONSOLIDATED JOINT VENTURES (unaudited)
(Amounts in thousands)
 
 
 
 
 
 
 
Percentage
Ownership at
December 31, 2019
 
Our Share of Net Income (Loss) for the Three Months Ended December 31,
 
Our Share of NOI
(non-GAAP) for the
Three Months Ended December 31,
 
 
2019
 
2018
 
2019
 
2018
Joint Venture Name
 
 
 
 
 
 
 
 
 
New York:
 
 
 
 
 
 
 
 
 
Fifth Avenue and Times Square JV(1):
 
 
 
 
 
 
 
 
 
     Equity in net income
51.5%
 
$
10,022

 
$

 
$
36,364

 
$

     Return on preferred equity, net of our share of the expense
 
 
9,455

 

 

 

 
 
 
19,477

 

 
36,364

 

Alexander's
32.4%
 
4,497

 
3,270

 
10,626

 
11,024

650 Madison Avenue
20.1%
 
(3,307
)
 
(1,156
)
 
3,075

 
2,434

One Park Avenue
55.0%
 
1,967

 
1,616

 
5,414

 
5,185

280 Park Avenue
50.0%
 
(1,576
)
 
(1,581
)
 
8,671

 
9,529

7 West 34th Street
53.0%
 
1,168

 
404

 
3,640

 
3,384

61 Ninth Avenue
45.1%
 
462

 
663

 
1,716

 
874

85 Tenth Avenue
49.9%
 
(372
)
 
(2,217
)
 
4,887

 
4,880

West 57th Street properties
50.0%
 
(360
)
 
(96
)
 
(42
)
 
261

Independence Plaza
50.1%
 
(331
)
 
(276
)
 
6,631

 
6,776

512 West 22nd Street
55.0%
 
38

 
8

 
829

 
687

330 Madison Avenue(2)
N/A
 

 
644

 

 
2,790

Other, net
Various
 
(293
)
 
(317
)
 
963

 
1,354

 
 
 
21,370

 
962

 
82,774

 
49,178

 
 
 
 
 
 
 
 
 
 
Other:
 
 
 
 
 
 
 
 
 
Alexander's corporate fee income
32.4%
 
1,097

 
1,182

 
516

 
537

Rosslyn Plaza
43.7% to 50.4%
 
31

 
(159
)
 
1,178

 
1,051

UE(3)
N/A
 

 
1,226

 

 
3,198

PREIT(4)
N/A
 

 
(902
)
 

 
4,683

Other, net
Various
 
228

 
781

 
1,522

 
1,558

 
 
 
1,356

 
2,128

 
3,216

 
11,027

 
 
 
 
 
 
 
 
 
 
Total
 
 
$
22,726

 
$
3,090

 
$
85,990

 
$
60,205

________________________________
(1)
Completed on April 18, 2019.
(2)
Sold on July 11, 2019.
(3)
Sold on March 4, 2019.
(4)
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.

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UNCONSOLIDATED JOINT VENTURES (unaudited)
(Amounts in thousands)
 
 
 
 
 
 
 
Percentage
Ownership at
December 31, 2019
 
Our Share of Net Income (Loss) for the Year Ended December 31,
 
Our Share of NOI
(non-GAAP) for the
Year Ended December 31,
 
 
2019
 
2018
 
2019
 
2018
Joint Venture Name
 
 
 
 
 
 
 
 
 
New York:
 
 
 
 
 
 
 
 
 
Fifth Avenue and Times Square JV(1):
 
 
 
 
 
 
 
 
 
     Equity in net income
51.5%
 
$
31,130

 
$

 
$
103,134

 
$

     Return on preferred equity, net of our share of the expense
 
 
27,586

 

 

 

 
 
 
58,716

 

 
103,134

 

Alexander's
32.4%
 
19,204

 
10,485

(2) 
44,325

 
45,134

280 Park Avenue
50.0%
 
(10,191
)
 
(4,962
)
 
34,495

 
38,545

One Park Avenue
55.0%
 
6,879

 
(116
)
(3) 
21,229

 
20,364

650 Madison Avenue
20.1%
 
(6,068
)
 
(4,048
)
 
11,314

 
10,299

7 West 34th Street
53.0%
 
3,969

 
3,238

 
13,947

 
13,441

61 Ninth Avenue
45.1%
 
1,480

 
1,743

 
6,299

 
2,246

330 Madison Avenue(4)
N/A
 
1,333

 
2,725

 
5,669

 
11,127

Independence Plaza
50.1%
 
(1,120
)
 
1,093

 
26,803

 
26,708

West 57th Street properties
50.0%
 
(654
)
 
(340
)
 
727

 
900

85 Tenth Avenue
49.9%
 
(368
)
 
(3,589
)
 
19,617

 
18,801

512 West 22nd Street
55.0%
 
106

 
33

 
3,032

 
2,634

Other, net
Various
 
(1,664
)
 
(118
)
 
3,577

 
5,709

 
 
 
71,622

 
6,144

 
294,168

 
195,908

 
 
 
 
 
 
 
 
 
 
Other:
 
 
 
 
 
 
 
 
 
Alexander's corporate fee income
32.4%
 
4,575

 
4,560

 
2,252

 
2,833

UE(5)
N/A
 
773

 
4,460

 
4,902

 
11,822

Rosslyn Plaza
43.7% to 50.4%
 
501

 
(215
)
 
5,201

 
4,520

PREIT(6)
N/A
 
51

 
(3,015
)
 
9,824

 
20,032

666 Fifth Avenue Office Condominium(7)
N/A
 

 
(4,873
)
 

 
12,145

Other, net
Various
 
1,343

 
2,088

 
6,043

 
6,304

 
 
 
7,243

 
3,005

 
28,222

 
57,656

 
 
 
 
 
 
 
 
 
 
Total
 
 
$
78,865

 
$
9,149

 
$
322,390

 
$
253,564

____________________
(1)
Completed on April 18, 2019.
(2)
Includes our $7,708 share of Alexander's additional transfer tax related to the November 2012 sale of Kings Plaza Regional Shopping Center. Alexander's recorded this expense 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 our $4,978 share of additional 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 an 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 or for leave to appeal to the New York State Court of Appeals. That motion was denied on December 12, 2019 and can no longer be appealed.
(4)
Sold on July 11, 2019.
(5)
Sold on March 4, 2019.
(6)
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.
(7)
Sold on August 3, 2018.


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 https://cdn.kscope.io/6b76d8e44602142e0060a4e1928a397d-vornadologoa11.jpg

PENN DISTRICT
 
 
 
 
 
 
 
 
 
 
 
 
 
 
ACTIVE DEVELOPMENT/REDEVELOPMENT SUMMARY - AS OF DECEMBER 31, 2019 (unaudited)
(Amounts in thousands of dollars, except square feet)
 
 
 
 
 
 
Property
Rentable
Sq. Ft.
 

 
 
 
 
 
 
 
Projected Incremental Cash Yield
Active Penn District Projects
 
Segment
 
 
Budget(1)
 
Amount
Expended
 
Remainder to be Expended
 
Stabilization Year
 
Farley (95% interest)
 
New York
 
844,000

 
1,030,000

(2) 
597,600

 
432,400

 
2022
 
7.4%
PENN2 - as expanded(3)
 
New York
 
1,795,000

 
750,000

 
40,820

 
709,180

 
2024
 
8.4%
PENN1(4)
 
New York
 
2,545,000

 
325,000

 
69,006


255,994

 
N/A
 
    13.5%(4)(5)
Districtwide Improvements
 
New York
 
N/A
 
100,000

 
6,314

 
93,686

 
N/A
 
N/A
Total Active Penn District Projects
 
 
 
 
 
2,205,000

 
713,740

 
1,491,260

(6) 
 
 
8.3%
________________________________
(1)
Excluding debt and equity carry.
(2)
Net of anticipated historic tax credits.
(3)
PENN2 (including signage) estimated impact on cash basis NOI and FFO of square feet taken out of service:
 
 
2020
 
2021
 
2022
Square feet out of service at end of year
 
1,140,000

 
1,190,000

 
1,200,000

Year-over-year reduction in Cash Basis NOI(i)
 
(25,000
)
 
(14,000
)
 

Year-over-year reduction in FFO(ii)
 
(19,000
)
 

 

________________________________
(i) After capitalization of real estate taxes and operating expenses on space out of service.
(ii) Net of capitalized interest on space out of service under redevelopment.

(4) 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.
(5) Achieved as existing leases roll; average remaining lease term 5.1 years.
(6) Expected to be funded from our balance sheet, principally from 220 CPS net sales proceeds.




There can be no assurance that the above projects will be completed, completed on schedule or within budget. In addition, there can be no assurance that the Company will be successful in leasing the properties on the expected schedule or at the assumed rental rates.












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 https://cdn.kscope.io/6b76d8e44602142e0060a4e1928a397d-vornadologoa11.jpg

OTHER DEVELOPMENT/REDEVELOPMENT SUMMARY - AS OF DECEMBER 31, 2019 (unaudited)
(Amounts in thousands of dollars, except square feet)
 
 
 
 
Property
Rentable
Sq. Ft.
 
 
 
 
 
 
 
Stabilization Year
Other Active Projects
 
Segment
 
 
Budget
 
Amount
Expended
 
Remainder to be Expended
 
220 CPS - residential condominiums
 
Other
 
397,000

 
1,450,000

 
1,372,581

(1) 
77,419

 
N/A
345 Montgomery Street (555 California Street) (70% interest)
 
Other
 
78,000

 
35,000

 
33,661

 
1,339

 
2020
825 Seventh Avenue - office (50% interest)
 
New York
 
165,000

 
15,000

 
11,564

 
3,436

 
2021
Total Other Projects
 
 
 
 
 
1,500,000

 
1,417,806

 
82,194

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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.



There can be no assurance that the above projects will be completed, completed on schedule or within budget.



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CAPITAL EXPENDITURES, TENANT IMPROVEMENTS AND LEASING COMMISSIONS (unaudited)
 
CONSOLIDATED
 
(Amounts in thousands)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Year Ended December 31,
 
 
 
2019
 
2018
 
2017
 
Amounts paid for capital expenditures:
 
 
 
 
 
 
 
Expenditures to maintain assets
 
$
93,226

 
$
92,386

 
$
111,629

 
Tenant improvements
 
98,261

 
100,191

 
128,287

 
Leasing commissions
 
18,229

 
33,254

 
36,447

 
Recurring tenant improvements, leasing commissions and other capital expenditures
 
209,716

 
225,831

 
276,363

 
Non-recurring capital expenditures
 
30,374

 
43,135

 
35,149

 
Total capital expenditures and leasing commissions
 
$
240,090

 
$
268,966

 
$
311,512

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Year Ended December 31,
 
 
 
2019
 
2018
 
2017
 
Amounts paid for development and redevelopment expenditures:
 
 
 
 
 
 
 
Farley Office and Retail Building
 
$
265,455

 
$
18,995

(1) 
$

 
220 CPS
 
181,177

 
295,827

 
265,791

 
PENN1
 
51,168

 
8,856

 
1,462

 
345 Montgomery Street
 
29,441

 
18,187

 
5,950

 
PENN2
 
28,719

 
16,288

 
2,021

 
606 Broadway
 
7,434

 
15,959

 
15,997

 
1535 Broadway
 
1,031

 
8,645

 
1,982

 
Other
 
84,631

 
35,429

 
62,649

(2) 
 
 
$
649,056

 
$
418,186

 
$
355,852

 
________________________________
(1)
Includes amounts paid for development from October 30, 2018, the date of consolidation of the Farley Office and Retail Building.
(2)
Primarily relates to our former Washington, DC segment which was spun-off on July 17, 2017.



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CAPITAL EXPENDITURES, TENANT IMPROVEMENTS AND LEASING COMMISSIONS (unaudited)
NEW YORK SEGMENT
(Amounts in thousands)
 
 
 
 
 
 
 
 
 
 Year Ended December 31,
 
 
2019
 
2018
 
2017
Amounts paid for capital expenditures:
 
 
 
 
 
 
Expenditures to maintain assets
 
$
80,416

 
$
70,954

 
$
79,567

Tenant improvements
 
84,870

 
76,187

 
83,639

Leasing commissions
 
16,316

 
29,435

 
26,114

Recurring tenant improvements, leasing commissions and other capital expenditures
 
181,602

 
176,576

 
189,320

Non-recurring capital expenditures
 
28,269

 
31,381

 
27,762

Total capital expenditures and leasing commissions
 
$
209,871

 
$
207,957

 
$
217,082

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 Year Ended December 31,
 
 
2019
 
2018
 
2017
Amounts paid for development and redevelopment expenditures:
 
 
 
 
 
 
Farley Office and Retail Building
 
$
265,455

 
$
18,995

(1) 
$

PENN1
 
51,168

 
8,856

 
1,462

PENN2
 
28,719

 
16,288

 
2,021

606 Broadway
 
7,434

 
15,959

 
15,997

1535 Broadway
 
1,031

 
8,645

 
1,982

Other
 
78,128

 
20,372

 
21,912

 
 
$
431,935

 
$
89,115

 
$
43,374

________________________________
(1)
Includes amounts paid for development from October 30, 2018, the date of consolidation of the Farley Office and Retail Building.



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CAPITAL EXPENDITURES,TENANT IMPROVEMENTS AND LEASING COMMISSIONS (unaudited)
theMART
(Amounts in thousands)
 
 
 
 
 
 
 
 
 Year Ended December 31,
 
 
2019
 
2018
 
2017
Amounts paid for capital expenditures:
 
 
 
 
 
 
Expenditures to maintain assets
 
$
9,566

 
$
13,282

 
$
12,772

Tenant improvements
 
9,244

 
15,106

 
8,730

Leasing commissions
 
827

 
459

 
1,701

Recurring tenant improvements, leasing commissions and other capital expenditures
 
19,637

 
28,847

 
23,203

Non-recurring capital expenditures
 
332

 
260

 

Total capital expenditures and leasing commissions
 
$
19,969

 
$
29,107

 
$
23,203

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 Year Ended December 31,
 
 
2019
 
2018
 
2017
Amounts paid for development and redevelopment expenditures:
 
 
 
 
 
 
Common area enhancements
 
$
476

 
$
51

 
$
5,342

Other
 
1,846

 
10,739

 
799

 
 
$
2,322

 
$
10,790

 
$
6,141


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CAPITAL EXPENDITURES, TENANT IMPROVEMENTS AND LEASING COMMISSIONS (unaudited)
555 CALIFORNIA STREET
 
 
 
 
 
 
(Amounts in thousands)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 Year Ended December 31,
 
 
2019
 
2018
 
2017
Amounts paid for capital expenditures:
 
 
 
 
 
 
Expenditures to maintain assets
 
$
3,244

 
$
8,150

 
$
9,689

Tenant improvements
 
4,147

 
8,898

 
19,327

Leasing commissions
 
1,086

 
3,360

 
1,330

Recurring tenant improvements, leasing commissions and other capital expenditures
 
8,477

 
20,408

 
30,346

Non-recurring capital expenditures
 
1,773

 
11,494

 
7,159

Total capital expenditures and leasing commissions
 
$
10,250

 
$
31,902

 
$
37,505

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 Year Ended December 31,
 
 
2019
 
2018
 
2017
Amounts paid for development and redevelopment expenditures:
 
 
 
 
 
 
345 Montgomery Street
 
$
29,441

 
$
18,187

 
$
5,950

Other
 
3,896

 
445

 
6,465

 
 
$
33,337

 
$
18,632

 
$
12,415



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CAPITAL EXPENDITURES, TENANT IMPROVEMENTS AND LEASING COMMISSIONS (unaudited)
 
OTHER
 
(Amounts in thousands)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 Year Ended December 31,
 
 
 
2019
 
2018
 
2017
 
Amounts paid for development and redevelopment expenditures:
 
 
 
 
 
 
 
220 CPS
 
$
181,177

 
$
295,827

 
$
265,791

 
Other
 
285

 
3,822

 
28,131

(1) 
 
 
$
181,462

 
$
299,649

 
$
293,922

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





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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
20,666

 
17,603

 
1,408

 
16,012

 

 
183

 

Retail
2,712

 
2,240

 
398

 

 
1,842

 

 

Residential - 1,679 units
1,526

 
793

 

 

 

 

 
793

Alexander's (32.4% interest), including 312 residential units
2,449

 
793

 
70

 
290

 
350

 

 
83

Hotel Pennsylvania
1,400

 
1,400

 

 

 

 

 
1,400

 
28,753

 
22,829

 
1,876

 
16,302

 
2,192

 
183

 
2,276

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Other:
 
 
 
 
 
 
 
 
 
 
 
 
 
theMART
3,901

 
3,892

 
75

 
2,045

 
105

 
1,318

 
349

555 California Street (70% interest)
1,819

 
1,273

 
55

 
1,185

 
33

 

 

Other
2,837

 
1,338

 
140

 
212

 
875

 

 
111

 
8,557

 
6,503

 
270

 
3,442

 
1,013

 
1,318

 
460

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total square feet at December 31, 2019
37,310

 
29,332

 
2,146

 
19,744

 
3,205

 
1,501

 
2,736

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total square feet at September 30, 2019
37,121

 
29,144

 
1,976

 
19,740

 
3,322

 
1,716

 
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 December 31, 2019
2,806

 
19

 
8,059

 
 
 
 
 
 
 
 



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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

 
$
77,447

 
3.4
%
 IPG and affiliates
 
967,552

 
65,705

 
2.9
%
 Macy's
 
646,434

 
38,271

 
1.7
%
 Bloomberg L.P.
 
303,147

 
36,928

 
1.6
%
 Google/Motorola Mobility (guaranteed by Google)
 
728,483

 
35,510

 
1.6
%
 AXA Equitable Life Insurance
 
336,646

 
35,022

 
1.6
%
 Verizon Media Group
 
327,138

 
31,941

 
1.4
%
 McGraw-Hill Companies, Inc.
 
479,557

 
30,833

 
1.4
%
 Swatch Group USA(3)
 
14,950

 
29,156

 
1.3
%
 Ziff Brothers Investments, Inc.
 
265,657

 
28,325

 
1.3
%
 Amazon (including its Whole Foods subsidiary)
 
310,272

 
27,520

 
1.2
%
 The City of New York
 
563,545

 
25,086

 
1.1
%
 AMC Networks, Inc.
 
326,061

 
23,932

 
1.1
%
 Neuberger Berman Group LLC
 
288,325

 
23,302

 
1.0
%
 Madison Square Garden & Affiliates
 
342,822

 
22,955

 
1.0
%
 Bank of America
 
247,460

 
22,442

 
1.0
%
 JCPenney
 
426,370

 
21,654

 
1.0
%
 New York University
 
347,948

 
20,697

 
0.9
%
 PwC
 
241,196

 
17,731

 
0.8
%
 Victoria's Secret (guaranteed by L Brands, Inc.)(3) 
 
33,164

 
17,675

 
0.8
%
 U.S. Government
 
578,711

 
14,326

 
0.6
%
 Information Builders, Inc.
 
210,978

 
13,368

 
0.6
%
 Cushman & Wakefield
 
127,314

 
12,890

 
0.6
%
 Fast Retailing (Uniqlo)(3)
 
47,181

 
12,832

 
0.6
%
 New York & Company, Inc.
 
193,140

 
11,053

 
0.5
%
 Hollister(3)
 
11,306

 
10,929

 
0.5
%
 Foot Locker
 
149,987

 
10,673

 
0.5
%
 Forest Laboratories
 
168,673

 
10,656

 
0.5
%
 Manufacturers & Traders Trust
 
102,622

 
10,383

 
0.5
%
 Kirkland & Ellis LLP
 
106,752

 
10,376

 
0.5
%
 
 
 
 
 
 
33.5
%
________________________________
(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.

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OCCUPANCY (unaudited)
 
 
 
 
 
 
 
 
 
New York
 
theMART
 
555 California Street
Occupancy rate at:
 
 
 
 
 
 
December 31, 2019
 
96.7
%
 
94.6
%
 
99.8
%
September 30, 2019
 
96.8
%
 
95.0
%
 
100.0
%
December 31, 2018
 
97.0
%
 
94.7
%
 
99.4
%
September 30, 2018
 
97.3
%
 
95.5
%
 
99.4
%


RESIDENTIAL STATISTICS in service (unaudited)
 
 
 
 
Vornado's Ownership Interest
 
Number of Units
 
Number of Units
 
Occupancy Rate
 
Average Monthly
Rent Per Unit
New York:
 
 
 
 
 
 
 
December 31, 2019
1,991
 
955
 
97.0%
 
$3,889
September 30, 2019
1,991
 
955
 
96.8%
 
$3,879
December 31, 2018
1,999
 
963
 
96.6%
 
$3,803
September 30, 2018
1,999
 
963
 
96.7%
 
$3,775


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GROUND LEASES (unaudited)
(Amounts in thousands, except square feet)
 
 
 
 
 
 
 
 
 
 
 
Property
 
Current Annual
Rent at Share
 
Next Option Renewal Date
 
Fully Extended
Lease Expiration
 
Rent Increases and Other Information
Consolidated:
 
 
 
 
 
 
 
 
 
 
New York:
 
 
 
 
 
 
 
 
 
 
Farley (95.0% interest)
 
 
$
4,750

 
 
None
 
2116
 
None
260 Eleventh Avenue
 
 
4,191

 
 
None
 
2114
 
Rent increases annually by the lesser of CPI or 1.5% compounded. We have a purchase option exercisable at a future date for $110,000 increased annually by the lesser of CPI or 1.5% compounded.
PENN1:
 
 
 
 
 
 
 
 
 
 
Land
 
 
2,500

 
 
2023
 
2098
 
Three 25-year renewal options at fair market value ("FMV").
Long Island Railroad Concourse
 
 
3,138

 
 
2023
 
2098
 
Three 25-year renewal options. Rent increases at a rate based on the increase in gross income reduced by the increase in real estate taxes and operating expenses. The next rent increase occurs in 2028 and every ten years thereafter.
888 Seventh Avenue
 
 
3,350

 
 
2028
 
2067
 
Two 20-year renewal options at FMV.
Piers 92 & 94
 
 
2,000

 
 
2060
 
2110
 
Five 10-year renewal options. FMV resets upon exercise of first and fourth renewal options. Fixed rent increases every 5 years through initial term.
330 West 34th Street -
    65.2% ground leased
 
 
1,906

 
 
2021
 
2149
 
Three 30-year and one 39-year renewal option at FMV.
909 Third Avenue
 
 
1,600

 
 
2041
 
2063
 
One 22-year renewal option at current annual rent.
962 Third Avenue (the Annex building to 150 East 58th Street) - 50.0% ground leased
 
 
666

 
 
None
 
2118
 
Rent resets every ten years to FMV.

Other:
 
 
 
 
 
 
 
 
 
 
Wayne Town Center
 
 
4,466

 
 
2035
 
2064
 
Two 10-year renewal options and one 9-year renewal option. Rent increases annually by the greater of CPI or 6%.
Annapolis
 
 
328

 
 
None
 
2042
 
Fixed rent increases to $650 per annum in 2022 and to $750 per annum in 2032.
Unconsolidated:
 
 
 
 
 
 
 
 
 
 
61 Ninth Avenue
(45.1% interest)
 
 
3,240

 
 
None
 
2115
 
Rent increases in April 2021 and every three-years thereafter based on CPI, subject to a cap. In 2051, 2071 and 2096, rent resets based on the increase in the property's gross revenue net of real estate taxes, if greater than the CPI reset.
Flushing (Alexander's)
(32.4% interest)
 
 
259

 
 
2027
 
2037
 
One 10-year renewal option at 90% of FMV.


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NEW YORK SEGMENT
PROPERTY TABLE
 
 
%
Ownership
 
%
Occupancy
 
Weighted
Average Escalated
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
%
 
90.6
%
 
$
69.21

 
2,273,000

 
2,104,000

 
169,000

 
 
 
United Healthcare Services, Inc., Siemens Mobility
-Retail
 
100.0
%
 
86.0
%
 
281.94

 
272,000

 
102,000

 
170,000

 
 
 
Bank of America, Shake Shack, Starbucks
 
 
100.0
%
 
90.4
%
 
76.75

 
2,545,000

 
2,206,000

 
339,000

 
$

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
PENN2
 
 

 
 

 
 
 
 

 
 

 
 

 
 

 
EMC
-Office
 
100.0
%
 
100.0
%
 
63.89

 
1,572,000

 
1,193,000

 
379,000

 
 
 
Madison Square Garden, McGraw-Hill Companies, Inc.
-Retail
 
100.0
%
 
100.0
%
 
220.26

 
43,000

 
39,000

 
4,000

 
 
 
Chase Manhattan Bank
 
 
100.0
%
 
100.0
%
 
68.80

 
1,615,000

 
1,232,000

 
383,000

 
575,000 (3)

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
PENN11
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 
-Office
 
100.0
%
 
100.0
%
 
62.61

 
1,113,000

 
1,113,000

 

 
 
 
Madison Square Garden, AMC Networks, Inc., Information Builders, Inc.*,
 
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
PNC Bank National Association, Starbucks, Macy's
-Retail
 
100.0
%
 
95.2
%
 
138.21

 
40,000

 
40,000

 

 
 
 
 
 
 
100.0
%
 
99.8
%
 
65.12

 
1,153,000

 
1,153,000

 

 
450,000

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
100 West 33rd Street
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 
-Office
 
100.0
%
 
100.0
%
 
67.91

 
859,000

 
859,000

 

 
398,402

 
IPG and affiliates
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Manhattan Mall
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 
-Retail
 
100.0
%
 
99.0
%
 
130.81

 
256,000

 
256,000

 

 
181,598

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

 
 

 
 

 
 

 
 

 
 

 
 

 
 
(65.2% ground leased through 2149)**
 
 

 
 

 
 

 
 
 
 
 
 
 
 
 
New York & Company, Inc., Structure Tone,
-Office
 
100.0
%
 
100.0
%
 
65.82

 
703,000

 
703,000

 

 
 
 
Deutsch, Inc., Web.com, Footlocker, Home Advisor, Inc.
-Retail
 
100.0
%
 
34.5
%
 
145.45

 
21,000

 
21,000

 

 
 
 
Starbucks
 
 
100.0
%
 
98.6
%
 
66.39

 
724,000

 
724,000

 

 
50,150 (4)

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
435 Seventh Avenue
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 
-Retail
 
100.0
%
 
100.0
%
 
70.43

 
43,000

 
43,000

 

 
95,696

 
Forever 21
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
7 West 34th Street
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 
-Office
 
53.0
%
 
100.0
%
 
71.02

 
458,000

 
458,000

 

 
 
 
Amazon
-Retail
 
53.0
%
 
100.0
%
 
343.98

 
19,000

 
19,000

 

 
 
 
Amazon, Lindt, Naturalizer (guaranteed by Caleres)
 
 
53.0
%
 
100.0
%
 
82.15

 
477,000

 
477,000

 

 
300,000

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
431 Seventh Avenue
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 
-Retail
 
100.0
%
 
100.0
%
 
283.80

 
10,000

 
10,000

 

 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
488 Eighth Avenue
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 
-Retail
 
100.0
%
 
100.0
%
 
90.85

 
6,000

 
6,000

 

 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
138-142 West 32nd Street
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 
-Retail
 
100.0
%
 
100.0
%
 
114.09

 
8,000

 
8,000

 

 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
150 West 34th Street
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
-Retail
 
100.0
%
 
100.0
%
 
112.53

 
78,000

 
78,000

 

 
205,000

 
Old Navy
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

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NEW YORK SEGMENT
PROPERTY TABLE
 
 
%
Ownership
 
%
Occupancy
 
Weighted
Average Escalated
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
%
 
$
101.14

 
3,000

 
3,000

 

 
$

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
131-135 West 33rd Street
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 
-Retail
 
100.0
%
 
100.0
%
 
55.08

 
23,000

 
23,000

 

 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Other (3 buildings)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 -Retail
 
100.0
%
 
70.0
%
 
203.80

 
15,000

 
15,000

 

 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Penn District
 
 

 
 

 
 
 
7,815,000

 
7,093,000

 
722,000

 
2,255,846

 
 
Midtown East:
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 
909 Third Avenue
 
 

 
 

 
 
 
 
 
 
 
 
 
 
 
 
(ground leased through 2063)**
 
 

 
 

 
 
 
 
 
 
 
 
 
 
 
IPG and affiliates, Forest Laboratories,
-Office
 
100.0
%
 
98.6
%
 
65.64

(5) 
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(6)
 
 

 
 

 
 

 
 
 
 
 
 
 
 

 
 
-Office
 
100.0
%
 
98.9
%
 
78.02

 
540,000

 
540,000

 

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

 
3,000

 
3,000

 

 
 
 
 
 
 
100.0
%
 
98.5
%
 
77.98

 
543,000

 
543,000

 

 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
715 Lexington Avenue
 
 

 
 

 
 
 
 
 
 
 
 
 
 
 
 
-Retail
 
100.0
%
 
100.0
%
 
210.65

 
22,000

 
16,000

 
6,000

 

 
Jonathan Adler, Orangetheory Fitness*, Casper*
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
966 Third Avenue
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 
-Retail
 
100.0
%
 
100.0
%
 
107.94

 
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
 
 

 
 

 
 
 
1,931,000

 
1,925,000


6,000


350,000

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Midtown West:
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 
888 Seventh Avenue
 
 

 
 

 
 
 
 
 
 
 
 
 
 
 
 
(ground leased through 2067)**
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
Axon Capital LP, Lone Star US Acquisitions LLC,
-Office
 
100.0
%
 
92.6
%
 
92.15

 
870,000

 
870,000

 

 
 
 
Vornado Executive Headquarters, United Talent Agency
-Retail
 
100.0
%
 
100.0
%
 
310.75

 
15,000

 
15,000

 

 
 
 
Redeye Grill L.P.
 
 
100.0
%
 
92.7
%
 
94.25

 
885,000

 
885,000

 

 
375,000

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
57th Street - 2 buildings
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 
-Office
 
50.0
%
 
72.4
%
 
57.15

 
81,000

 
81,000

 

 
 
 
 
-Retail
 
50.0
%
 
100.0
%
 
140.71

 
22,000

 
22,000

 

 
 
 
 
 
 
50.0
%
 
70.0
%
 
77.04

 
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
%
 
97.4
%
 
103.27

 
1,234,000

 
1,234,000

 

 
 
 
PJT Partners, Investcorp International Inc., GIC Inc., Wells Fargo
-Retail
 
50.0
%
 
100.0
%
 
79.14

 
28,000

 
28,000

 

 
 
 
Scottrade Inc., Starbucks, Fasano Restaurant*
 
 
50.0
%
 
97.4
%
 
102.72

 
1,262,000

 
1,262,000

 

 
1,200,000

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

- 43 -


 https://cdn.kscope.io/6b76d8e44602142e0060a4e1928a397d-vornadologoa11.jpg

NEW YORK SEGMENT
PROPERTY TABLE
 
 
%
Ownership
 
%
Occupancy
 
Weighted
Average Escalated
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
%
 
$
108.84

 
553,000

 
553,000

 

 
 
 
MFA Financial Inc., M&T Bank, Square Mile Capital Management*
-Retail
 
100.0
%
 
100.0
%
 
275.40

 
18,000

 
18,000

 

 
 
 
Fidelity Investments, AT&T Wireless, Valley National Bank
 
 
100.0
%
 
97.8
%
 
114.08

 
571,000

 
571,000




$
400,000

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Park Avenue
 
 

 
 

 
 
 
1,833,000

 
1,833,000

 

 
1,600,000

 
 
Grand Central:
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 
90 Park Avenue
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
Alston & Bird, Capital One, PwC, MassMutual,
-Office
 
100.0
%
 
99.3
%
 
78.99

 
938,000

 
938,000

 

 
 
 
Factset Research Systems Inc., Foley & Lardner
-Retail
 
100.0
%
 
72.8
%
 
152.04

 
18,000

 
18,000

 

 
 
 
Citibank, Starbucks
 
 
100.0
%
 
98.8
%
 
79.97

 
956,000

 
956,000



 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
510 Fifth Avenue
 
 

 
 

 
 
 
 
 
 
 
 
 
 
 
 
-Retail
 
100.0
%
 
100.0
%
 
162.10

 
66,000

 
66,000

 

 

 
The North Face, Elie Tahari
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Grand Central
 
 

 
 

 
 
 
1,022,000

 
1,022,000

 

 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Madison/Fifth:
 
 
 
 

 
 

 
 

 
 
 
 

 
 
 
 
640 Fifth Avenue
 
 
 
 

 
 
 
 
 
 
 
 
 
 
 
Fidelity Investments, Owl Creek Asset Management LP,
-Office
 
52.0
%
 
95.6
%
 
96.10

 
246,000

 
246,000

 

 
 
 
Avolon Aerospace, GCA Savvian Inc.
-Retail
 
52.0
%
 
100.0
%
 
938.20

 
69,000

 
69,000

 

 
 
 
Victoria's Secret (guaranteed by L Brands, Inc.), Dyson
 
 
52.0
%
 
96.2
%
 
228.94

 
315,000

 
315,000

 

 
500,000

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
666 Fifth Avenue
 
 
 
 

 
 

 
 

 
 
 
 

 
 
 
 
-Retail
 
52.0
%
 
100.0
%
 
487.16

 
114,000

(7) 
114,000

 

 

 
Fast Retailing (Uniqlo), Hollister, Tissot
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
595 Madison Avenue
 
 

 
 

 
 

 
 

 
 
 
 

 
 
 
Beauvais Carpets, Levin Capital Strategies LP,
-Office
 
100.0
%
 
90.2
%
 
86.58

 
297,000

 
297,000

 

 
 
 
Cosmetech Mably Int'l LLC.
-Retail
 
100.0
%
 
83.9
%
 
738.88

 
32,000

 
32,000

 

 
 
 
Fendi*, Berluti*
 
 
100.0
%
 
89.8
%
 
125.71

 
329,000

 
329,000

 

 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
650 Madison Avenue
 
 

 
 

 
 

 
 

 
 
 
 

 
 
 
Memorial Sloan Kettering Cancer Center, Sotheby's International Realty, Inc.,
-Office
 
20.1
%
 
97.9
%
 
115.42

 
564,000

 
564,000

 

 
 
 
Polo Ralph Lauren, Willett Advisors LLC (Bloomberg Philanthropies)
-Retail
 
20.1
%
 
100.0
%
 
988.38

 
37,000

 
37,000

 

 
 
 
Moncler USA Inc., Tod's, Celine, Domenico Vacca*, Balmain*
 
 
20.1
%
 
98.0
%
 
150.46

 
601,000

 
601,000

 

 
800,000

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
689 Fifth Avenue
 
 

 
 

 
 

 
 

 
 
 
 

 
 
 
 
-Office
 
52.0
%
 
100.0
%
 
91.06

 
81,000

 
81,000

 

 
 
 
Yamaha Artist Services Inc., Brunello Cucinelli USA Inc.
-Retail
 
52.0
%
 
9.3
%
 
3,613.83

 
17,000

 
17,000

 

 
 
 
MAC Cosmetics
 
 
52.0
%
 
85.3
%
 
153.47

 
98,000

 
98,000

 

 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
655 Fifth Avenue
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
-Retail
 
50.0
%
 
100.0
%
 
272.40

 
57,000

 
57,000

 

 

 
Ferragamo
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
697-703 Fifth Avenue
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 
-Retail
 
44.8
%
 
100.0
%
 
2,981.54

 
26,000

 
26,000

 

 
450,000

 
Swatch Group USA, Harry Winston
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Madison/Fifth
 
 

 
 

 
 

 
1,540,000

 
1,540,000

 

 
1,750,000

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

- 44 -


 https://cdn.kscope.io/6b76d8e44602142e0060a4e1928a397d-vornadologoa11.jpg

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

 
 

 
 

 
 

 
 

 
 

 
 
Midtown South:
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 
770 Broadway
 
 

 
 

 
 

 
 
 
 
 
 
 
 

 
 
-Office
 
100.0
%
 
100.0
%
 
$
100.00

 
1,077,000

 
1,077,000

 

 
 
 
Facebook, Verizon Media Group
-Retail
 
100.0
%
 
92.0
%
 
67.50

 
105,000

 
105,000

 

 
 
 
Bank of America N.A., Kmart Corporation
 
 
100.0
%
 
99.3
%
 
97.50

 
1,182,000

 
1,182,000

 

 
$
700,000

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
One Park Avenue
 
 

 
 

 
 

 
 
 
 
 
 
 
 

 
New York University, Clarins USA Inc.,
 
 
 

 
 

 
 

 
 
 
 
 
 
 
 

 
BMG Rights Management, Robert A.M. Stern Architect,
-Office
 
55.0
%
 
100.0
%
 
59.83

 
865,000

 
865,000

 

 
 
 
automotiveMastermind
-Retail
 
55.0
%
 
100.0
%
 
89.49

 
78,000

 
78,000

 

 
 
 
Bank of Baroda, Citibank, Equinox, Men's Wearhouse
 
 
55.0
%
 
100.0
%
 
62.24

 
943,000

 
943,000

 

 
300,000

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
4 Union Square South
 
 

 
 

 
 
 
 
 
 
 
 
 
 
 
 
-Retail
 
100.0
%
 
91.3
%
 
112.02

 
206,000

 
206,000

 

 
120,000

 
Burlington, Whole Foods Market, DSW
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
692 Broadway
 
 

 
 

 
 
 
 
 
 
 
 
 
 
 
 
-Retail
 
100.0
%
 
100.0
%
 
96.69

 
36,000

 
36,000

 

 

 
Equinox, Verizon Media Group
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Midtown South
 
 
 
 

 
 
 
2,367,000


2,367,000




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
%
 
98.4
%
 
86.55

 
2,042,000

 
2,042,000

 

 
 
 
Columbia University, LinkLaters*
-Retail
 
70.0
%
 
100.0
%
 
190.75

 
75,000

 
75,000

 

 
 
 
Duane Reade, JPMorgan Chase Bank, Sovereign Bank, Starbucks
 
 
70.0
%
 
98.5
%
 
89.39

 
2,117,000

 
2,117,000

 

 
950,000

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
608 Fifth Avenue (8)
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 
(ground leased through 2033)**
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 
-Office
 
100.0
%
 
92.4
%
 
76.97

 
93,000

 
93,000

 

 
 
 
 
-Retail
 
100.0
%
 

 

 
44,000

 

 
44,000

 
 
 
 
 
 
100.0
%
 
92.4
%
 
76.97

 
137,000

 
93,000

 
44,000

 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Rockefeller Center
 
 

 
 

 
 
 
2,254,000

 
2,210,000

 
44,000

 
950,000

 
 
Wall Street/Downtown:
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 
40 Fulton Street
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 
-Office
 
100.0
%
 
79.5
%
 
52.57

 
246,000

 
246,000

 

 
 
 
Market News International Inc., Fortune Media Group
-Retail
 
100.0
%
 
100.0
%
 
118.72

 
5,000

 
5,000

 

 
 
 
TD Bank
 
 
100.0
%
 
79.9
%
 
54.12

 
251,000

 
251,000

 

 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Soho:
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 
478-486 Broadway - 2 buildings
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
-Retail
 
100.0
%
 
100.0
%
 
441.49

 
65,000

 
15,000

 
50,000

 
 
 
Madewell, J. Crew
-Residential (10 units)
 
100.0
%
 
100.0
%
 
 
 
20,000

 
20,000

 

 
 
 
 
 
 
100.0
%
 


 
 
 
85,000

 
35,000

 
50,000

 

 
 

- 45 -


 https://cdn.kscope.io/6b76d8e44602142e0060a4e1928a397d-vornadologoa11.jpg

NEW YORK SEGMENT
PROPERTY TABLE
 
 
%
Ownership
 
%
Occupancy
 
Weighted
Average Escalated
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):
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 
606 Broadway (19 East Houston Street)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
-Office
 
50.0
%
 
100.0
%
 
$
114.99

 
30,000

 
30,000

 

 
 
 
WeWork
-Retail
 
50.0
%
 
100.0
%
 
595.76

 
6,000

 
6,000

 

 
 
 
HSBC, Harman International*
 
 
50.0
%
 
100.0
%
 
178.23

 
36,000

 
36,000

 

 
$
67,804

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
443 Broadway
 
 

 
 

 
 
 
 
 
 
 
 
 
 
 
 
-Retail
 
100.0
%
 
100.0
%
 
104.12

 
16,000

 
16,000

 

 

 
Necessary Clothing
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
304 Canal Street
 
 

 
 

 
 
 
 
 
 
 
 
 
 
 
 
-Retail
 
100.0
%
 

 

 
4,000

 
4,000

 

 
 
 
 
-Residential (4 units)
 
100.0
%
 
100.0
%
 
 
 
9,000

 
9,000

 

 
 
 
 
 
 
100.0
%
 
 
 
 
 
13,000

 
13,000

 

 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
334 Canal Street
 
 

 
 

 
 
 
 
 
 
 
 
 
 
 
 
-Retail
 
100.0
%
 

 

 
4,000

 
4,000

 

 
 
 
 
-Residential (4 units)
 
100.0
%
 
100.0
%
 
 
 
11,000

 
11,000

 

 
 
 
 
 
 
100.0
%
 
 
 
 

 
15,000

 
15,000

 

 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
155 Spring Street
 
 

 
 

 
 
 
 
 
 
 
 
 
 
 
 
-Retail
 
100.0
%
 
97.3
%
 
121.40

 
50,000

 
50,000

 

 

 
Vera Bradley
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
148 Spring Street
 
 

 
 

 
 
 
 
 
 
 
 
 
 
 
 
-Retail
 
100.0
%
 
100.0
%
 
196.07

 
8,000

 
8,000

 

 

 
Dr. Martens
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
150 Spring Street
 
 

 
 

 
 
 
 
 
 
 
 
 
 
 
 
-Retail
 
100.0
%
 
100.0
%
 
300.72

 
6,000

 
6,000

 

 
 
 
Sandro
-Residential (1 unit)
 
100.0
%
 
100.0
%
 
 

 
1,000

 
1,000

 

 
 
 
 
 
 
100.0
%
 
 
 
 

 
7,000

 
7,000

 

 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Soho
 
 

 
 

 
 
 
230,000


180,000


50,000

 
67,804

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Times Square:
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 
1540 Broadway
 
 

 
 

 
 
 
 
 
 
 
 
 
 
 
Forever 21, Planet Hollywood, Disney, Sunglass Hut,
-Retail
 
52.0
%
 
100.0
%
 
223.81

 
161,000

 
161,000

 

 

 
MAC Cosmetics, U.S. Polo
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1535 Broadway
 
 
 
 

 
 
 
 
 
 
 
 
 
 
 
 
-Retail
 
52.0
%
 
95.3
%
 
1,073.44

 
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
%
 
98.2
%
 
400.12

 
107,000

 
107,000

 

 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Times Square
 
 

 
 

 
 
 
268,000

 
268,000

 

 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Upper East Side:
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 
828-850 Madison Avenue
 
 

 
 

 
 

 
 
 
 
 
 
 
 
 
 
-Retail
 
100.0
%
 
42.4
%
 
433.10

 
18,000

 
14,000

 
4,000

 

 
Christofle Silver Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
677-679 Madison Avenue
 
 

 
 

 
 
 
 
 
 
 
 
 
 
 
 
-Retail
 
100.0
%
 
100.0
%
 
522.44

 
8,000

 
8,000

 

 
 
 
Berluti
-Residential (8 units)
 
100.0
%
 
75.0
%
 
 
 
5,000

 
5,000

 

 
 
 
 
 
 
100.0
%
 
 
 
 

 
13,000

 
13,000

 

 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1131 Third Avenue
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
-Retail
 
100.0
%
 
100.0
%
 
178.61

 
23,000

 
23,000

 

 

 
Nike, Crunch LLC, J.Jill
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

- 46 -


 https://cdn.kscope.io/6b76d8e44602142e0060a4e1928a397d-vornadologoa11.jpg

NEW YORK SEGMENT
PROPERTY TABLE
 
 
%
Ownership
 
%
Occupancy
 
Weighted
Average Escalated
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):
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
759-771 Madison Avenue (40 East 66th)
 
 

 
 

 
 
 
 
 
 
 
 
 
 
 
 
-Retail
 
100.0
%
 
66.7
%
 
$
1,431.01

 
14,000

 
14,000

 

 
 
 
John Varvatos
-Residential (5 units)
 
100.0
%
 
100.0
%
 
 
 
12,000

 
12,000

 

 
 
 
 
 
 
100.0
%
 


 
 

 
26,000

 
26,000

 

 
$

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Upper East Side
 
 
 
 
 
 
 
80,000

 
76,000

 
4,000

 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Long Island City:
 
 

 
 

 
 

 
 
 
 
 
 

 
 

 
 
33-00 Northern Boulevard (Center Building)
 
 

 
 

 
 

 
 
 
 
 
 

 
 

 
 
-Office
 
100.0
%
 
95.5
%
 
36.04

 
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
%
 
52.92

 
184,000

 
184,000

 

 

 
The City of New York
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
85 Tenth Avenue
 
 
 
 

 
 
 
 
 
 
 
 
 
 
 
Google, General Services Administration,
 
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
Telehouse International Corp., L-3 Communications,
-Office
 
49.9
%
 
100.0
%
 
89.18

 
584,000

 
584,000

 

 
 
 
Moet Hennessy USA. Inc.
-Retail
 
49.9
%
 
100.0
%
 
84.95

 
43,000

 
43,000

 

 
 
 
IL Posto LLC, Toro NYC Restaurant, L'Atelier
 
 
49.9
%
 
100.0
%
 
88.91

 
627,000

 
627,000

 

 
625,000

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
537 West 26th Street
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
-Retail
 
100
%
 

 

 
14,000

 
14,000

 

 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
61 Ninth Avenue
 
 

 
 

 
 
 
 

 
 

 
 

 
 

 
 
(ground leased through 2115)**
 
 

 
 

 
 
 
 

 
 

 
 

 
 

 
 
-Office
 
45.1
%
 
100.0
%
 
117.93

 
143,000

 
143,000

 

 
 
 
Aetna Life Insurance Company
-Retail
 
45.1
%
 
100.0
%
 
316.08

 
23,000

 
23,000

 

 
 
 
Starbucks
 
 
45.1
%
 
100.0
%
 
133.33

 
166,000

 
166,000

 

 
167,500

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
512 West 22nd Street
 
 

 
 

 
 
 
 

 
 

 
 

 
 

 
 
-Office
 
55.0
%
 
100.0
%
 
101.00

 
173,000

 
20,000

 
153,000

 
109,565

 
Warner Media, Next Jump*
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Chelsea/Meatpacking District
 
 

 
 

 
 
 
1,164,000


1,011,000

 
153,000

 
902,065

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Upper West Side:
 
 

 
 

 
 
 
 

 
 

 
 

 
 

 
 
50-70 W 93rd Street
 
 

 
 

 
 
 
 
 
 
 
 
 
 
 
 
-Residential (325 units)
 
49.9
%
 
96.6
%
 
 
 
283,000

 
283,000

 

 
82,500

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Tribeca:
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 
Independence Plaza
 
 

 
 

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

 
1,185,000

 
1,185,000

 

 
 
 
 
-Retail
 
50.1
%
 
100.0
%
 
60.52

 
72,000

 
56,000

 
16,000

 
 
 
Duane Reade
 
 
50.1
%
 
 
 
 
 
1,257,000

 
1,241,000

 
16,000

 
675,000

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
339 Greenwich Street
 
 

 
 

 
 
 
 
 
 
 
 
 
 
 
 
-Retail
 
100.0
%
 
100.0
%
 
112.64

 
8,000

 
8,000

 

 

 
Sarabeth's
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Tribeca
 
 

 
 

 
 

 
1,265,000

 
1,249,000

 
16,000

 
675,000

 
 
New Jersey:
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 
Paramus
 
 

 
 

 
 
 
 
 
 
 
 
 
 
 
 
-Office
 
100.0
%
 
87.2
%
 
25.73

 
129,000

 
129,000

 

 

 
Vornado's Administrative Headquarters
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

- 47 -


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NEW YORK SEGMENT
PROPERTY TABLE
 
 
%
Ownership
 
%
Occupancy
 
Weighted
Average Escalated
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):
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 
Properties under Development:
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 
Farley Office and Retail Building
(ground and building leased through 2116)**
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
-Office
 
95.0
%
 

 
$

 
730,000

 

 
730,000

 
 
 
 
-Retail
 
95.0
%
 

 

 
114,000

 

 
114,000

 
 
 
 
 
 
95.0
%
 

 

 
844,000

 

 
844,000

 
$

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
825 Seventh Avenue
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
-Office
 
50.0
%
 

 

 
165,000

 

 
165,000

 
31,889

 
 
-Retail
 
100.0
%
 

 

 
4,000

 

 
4,000

 

 
 
 
 
51.2
%
 

 

 
169,000

 

 
169,000

 
31,889

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Property under Development
 
 
 
 
 
 
 
1,013,000




1,013,000


31,889

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Properties to be Developed:
 
 

 
 

 
 
 
 
 
 
 
 
 
 
 
 
57th Street (3 properties)
 
 

 
 

 
 
 
 
 
 
 
 
 
 
 
 
-Land
 
50.0
%
 

 

 

 

 

 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Eighth Avenue and 34th Street (4 properties)
 
 

 
 

 
 
 
 
 
 
 
 
 
 
 
 
-Land
 
100.0
%
 

 

 

 

 

 

 
 
 
 
 
 
 
 
 
 

 

 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
New York Office:
 
 

 
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total
 
 

 
97.1
%
 
$
78.64

 
20,666,000

 
19,070,000

 
1,596,000

 
$
8,402,506

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Vornado's Ownership Interest
 
 

 
96.9
%
 
$
76.26

 
17,603,000

 
16,195,000

 
1,408,000

 
$
5,849,439

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
New York Retail:
 
 

 
 
 
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total
 
 

 
95.2
%
 
$
246.31

 
2,712,000

 
2,300,000

 
412,000

 
$
1,120,098

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Vornado's Ownership Interest
 
 

 
94.5
%
 
$
209.86

 
2,240,000

 
1,842,000

 
398,000

 
$
837,732

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
New York Residential:
 
 

 
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total
 
 

 
96.8
%
 
 

 
1,526,000

 
1,526,000

 

 
$
757,500

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Vornado's Ownership Interest
 
 

 
97.0
%
 
 

 
793,000

 
793,000

 

 
$
379,342

 
 

- 48 -


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NEW YORK SEGMENT
PROPERTY TABLE
 
 
%
Ownership
 
%
Occupancy
 
Weighted
Average Escalated
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
%
 
$
121.81

 
920,000

 
896,000

 
24,000

 
$
500,000

 
Bloomberg
-Retail
 
32.4
%
 
92.7
%
 
277.36

 
155,000

 
155,000

 

 
350,000

 
The Home Depot, The Container Store, Hutong
 
 
32.4
%
 
99.0
%
 
138.43

 
1,075,000

 
1,051,000

 
24,000

 
850,000

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 
Rego Park I, Queens (4.8 acres)
 
32.4
%
 
100.0
%
 
53.18

 
343,000

 
148,000

 
195,000

 

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

 
 

 
 
 
 
 
 
 
 
 
 
 
 
Queens (6.6 acres)
 
32.4
%
 
91.5
%
 
59.78

 
609,000

 
609,000

 

 
56,836

(9) 
Century 21, Costco, Kohl's, TJ Maxx
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Flushing, Queens (1.0 acre ground leased through 2037)**
 
32.4
%
 
100.0
%
 
29.18

 
167,000

 
167,000

 

 

 
New World Mall LLC
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
The Alexander Apartment Tower,
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 
Rego Park, Queens, NY
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 
Residential (312 units)
 
32.4
%
 
93.6
%
 

 
255,000

 
255,000

 

 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
New Jersey:
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 
Paramus, New Jersey
 
 

 
 

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

 

 

 

 
68,000

 
IKEA (ground lessee)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Property to be Developed:
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 
Rego Park III (adjacent to Rego Park II),
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 
Queens, NY (3.4 acres)
 
32.4
%
 

 

 

 

 

 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Alexander's
 
32.4
%
 
96.5
%
 
91.76

 
2,449,000

 
2,230,000

 
219,000

 
974,836

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Hotel Pennsylvania:
 
 

 
 

 
 
 
 
 
 
 
 
 
 
 
 
-Hotel (1,700 Rooms)
 
100.0
%
 
 

 
 

 
1,400,000

 
1,400,000

 

 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total New York
 
 

 
96.8
%
 
$
94.79

 
28,753,000

 
26,526,000

 
2,227,000

 
$
11,254,940

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Vornado's Ownership Interest
 
 

 
96.7
%
 
$
88.13

 
22,829,000

 
20,953,000

 
1,876,000

 
$
7,382,360

 
 
________________________________
*    Lease not yet commenced.
**    Term assumes all renewal options exercised, if applicable.

(1)
Weighted average annual rent per square foot and average occupancy percentage for office properties excludes garages and diminimous amounts of storage space. Weighted average annual rent per square foot for retail excludes non-selling space.
(2)
Represents contractual debt obligations.
(3)
Secured amount outstanding on revolving credit facilities.
(4)
Amount represents debt on land which is owned 34.8% by Vornado.
(5)
Excludes US Post Office leased through 2038 (including three five-year renewal options) for which the annual escalated rent is $13.51 PSF.
(6)
Includes 962 Third Avenue (the Annex building to 150 East 58th Street) 50.0% ground leased through 2118**.
(7)
75,000 square feet is leased from 666 Fifth Avenue Office Condominium.
(8)
In August 2019, we delivered notice to the ground lessor that we will surrender the property in May 2020.
(9)
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.



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OTHER
PROPERTY TABLE
 
 
%
Ownership
 
%
Occupancy
 
Weighted
Average Escalated
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
%
 
94.5
%
 
$
43.98

 
2,045,000

 
2,045,000

 

 
 
 
ConAgra Foods Inc., Allstate Insurance Company
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Steelcase, Baker, Knapp & Tubbs, Holly Hunt Ltd.,
-Showroom/Trade show
 
100.0
%
 
94.6
%
 
54.22

 
1,534,000

 
1,534,000

 

 
 
 
Allsteel Inc., Teknion LLC
-Retail
 
100.0
%
 
95.8
%
 
56.27

 
95,000

 
95,000

 

 
 
 
 
 
 
100.0
%
 
94.6
%
 
48.56

 
3,674,000

 
3,674,000

 

 
$
675,000

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Other (2 properties)
 
50.0
%
 
100.0
%
 
44.53

 
19,000

 
19,000

 

 
31,452

 
 
Total theMART, Chicago
 
 
 
 
 
 
 
3,693,000

 
3,693,000

 

 
706,452

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Piers 92 and 94 (New York) (ground and building leased through 2110)**
 
100.0
%
 

 

 
208,000

 
133,000

 
75,000

 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total theMART
 
 
 
94.6
%
 
$
48.54

 
3,901,000

 
3,826,000

 
75,000

 
$
706,452

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Vornado's Ownership Interest
 
 
 
94.6
%
 
$
48.54

 
3,892,000

 
3,817,000

 
75,000

 
$
690,726

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
555 California Street:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
555 California Street
 
70.0
%
 
99.7
%
 
$
81.86

 
1,506,000

 
1,506,000

 

 
$
548,075

 
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
%
 
82.30

 
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
 
 
 
99.8
%
 
$
81.92

 
1,819,000

 
1,741,000

 
78,000

 
$
548,075

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Vornado's Ownership Interest
 
 
 
99.8
%
 
$
81.92

 
1,273,000

 
1,218,000

 
55,000

 
$
383,652

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
________________________________
*    Lease not yet commenced.
**    Term assumes all renewal options exercised, if applicable.

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

- 50 -


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REAL ESTATE FUND
PROPERTY TABLE
 
 
Fund
%
Ownership
 
%
Occupancy
 
Weighted
Average Escalated
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
%
 
$
260.99

 
96,000

 
96,000

 

 
 
 
Sephora, Bank of America
     -Residential (39 units)
 
100.0
%
 
94.9
%
 
 
 
59,000

 
59,000

 

 
 
 
 
 
 
100.0
%
 
98.1
%
 
 
 
155,000

 
155,000

 

 
$
145,075

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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
%
 
99.3
%
 
176.31

 
50,000

 
50,000

 

 
 
 
New York Sports Club, Krispy Kreme, BHT Broadway
     -Office
 
75.3
%
 
100.0
%
 
51.04

 
196,000

 
196,000

 

 
 
 
American Management Association, Open Jar, Association for Computing Machinery
 
 
75.3
%
 
99.9
%
 
74.07

 
246,000

 
246,000

 

 
271,548

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
501 Broadway
 
100.0
%
 
100.0
%
 
291.45

 
9,000

 
9,000

 

 
22,872

 
Capital One Financial Corporation
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Miami, FL:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1100 Lincoln Road
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
     -Retail
 
100.0
%
 
65.4
%
 
170.52

 
51,000

 
51,000

 

 
 
 
Banana Republic
     -Theatre
 
100.0
%
 
100.0
%
 
43.97

 
79,000

 
79,000

 

 
 
 
Regal Cinema
 
 
100.0
%
 
86.5
%
 
79.22

 
130,000

 
130,000

 

 
82,750

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Real Estate Fund
 
88.7
%
 
95.7
%
 
 
 
540,000

 
540,000

 

 
$
522,245

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Vornado's Ownership Interest
 
28.6
%
 
96.8
%
 
 
 
155,000

 
155,000

 

 
$
152,285

 
 
________________________________
*    Lease not yet commenced.
**    Term assumes all renewal options exercised, if applicable.

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



- 51 -


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OTHER
PROPERTY TABLE
Property
 
%
Ownership
 
%
Occupancy
 
Weighted
Average Escalated
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
%
 
67.6
%
 
$
46.60

 
736,000

 
432,000

 

 
304,000

 
 
 
Corporate Executive Board, Nathan Associates, Inc.
-Residential - 2 buildings (197 units)
 
43.7
%
 
99.5
%
 
 
 
253,000

 
253,000

 

 

 
 
 
 
 
 
 
 
 
 
 
 
989,000

 
685,000

 

 
304,000

 
$
38,862

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fashion Centre Mall
 
7.5
%
 
96.9
%
 
47.75

 
868,000

 
868,000

 

 

 
410,000

 
Macy's, Nordstrom
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Washington Tower
 
7.5
%
 
75.0
%
 
39.80

 
170,000

 
170,000

 

 

 
40,000

 
The Rand Corporation
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
New Jersey:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Wayne Town Center, Wayne
    (ground leased through 2064)**
 
100.0
%
 
100.0
%
 
32.44

 
682,000

 
239,000

 
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
 
 
 
89.9
%
 
$
39.52

 
2,837,000

 
2,090,000

 
443,000

 
304,000

 
$
488,862

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Vornado's Ownership Interest
 
 
 
92.7
%
 
$
32.24

 
1,338,000

 
755,000

 
443,000

 
140,000

 
$
53,341

 
 
________________________________
**    Term assumes all renewal options exercised, if applicable.

(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.





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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/Elvis Rodriguez
 
 
Steve Sakwa/Jason Green
 
Alexander Goldfarb/Daniel Santos
Bank of America/BofA Securities
 
 
Evercore ISI
 
Sandler O'Neill
646-855-5808/646-855-1589
 
 
212-446-9462/212-446-9449
 
212-466-7937/212-466-7927
 
 
 
 
 
 
Ross Smotrich/Upal Rana
 
 
Richard Skidmore/Melissa Funk
 
Nicholas Yulico/Joshua Burr
Barclays Capital
 
 
Goldman Sachs
 
Scotia Capital (USA) Inc
212-526-2306/212-526-4887
 
 
801-741-5459/801-884-4127
 
212-225-6904/212-225-5415
 
 
 
 
 
 
John P. Kim/Frank Lee
 
 
Daniel Ismail/Dylan Burzinski
 
John W. Guinee/Aaron Wolf
BMO Capital Markets
 
 
Green Street Advisors
 
Stifel Nicolaus & Company
212-885-4115/415-591-2129
 
 
949-640-8780
 
443-224-1307/443-224-1206
 
 
 
 
 
 
Michael Bilerman/Emmanuel Korchman
 
 
Anthony Paolone/Ray Zhong
 
Michael Lewis/Alexei Siniakov
Citi
 
 
JP Morgan
 
SunTrust Robinson Humphrey
212-816-1383/212-816-1382
 
 
212-622-6682/212-622-5411
 
212-319-5659/212-590-0986
 
 
 
 
 
 
Derek Johnston/Tom Hennessy
 
 
Vikram Malhotra/Adam J. Gabalski
 
 
Deutsche Bank
 
 
Morgan Stanley
 
 
212-250-5683/212-250-4063
 
 
212-761-7064/212-761-8051
 
 
 
 
 
 
 
 
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.        

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APPENDIX
DEFINITIONS AND NON-GAAP RECONCILIATIONS




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FINANCIAL SUPPLEMENT DEFINITIONS
The financial supplement includes various non-GAAP financial measures. Descriptions of these non-GAAP measures are provided below. Reconciliations of these non-GAAP measures to the most directly comparable GAAP measures are provided on the following pages.
Net Operating Income ("NOI") at Share and NOI at Share - Cash Basis - NOI at share represents total revenues less operating expenses including our share of partially owned entities. NOI at share - cash basis represents NOI at share adjusted to exclude straight-line rental income and expense, amortization of acquired below and above market leases, net and other non-cash adjustments. We consider NOI at share - cash basis to be the primary non-GAAP financial measure for making decisions and assessing the unlevered performance of our segments as it relates to the total return on assets as opposed to the levered return on equity. As properties are bought and sold based on NOI at share - cash basis, we utilize this measure to make investment decisions as well as to compare the performance of our assets to that of our peers. NOI at share and NOI at share - cash basis should not be considered alternatives to net income or cash flow from operations and may not be comparable to similarly titled measures employed by other companies.
Same Store NOI at Share and Same Store NOI at Share - Cash Basis - Same store NOI at share represents NOI at share from operations which are in service in both the current and prior year reporting periods. Same store NOI at share - cash basis is same store NOI at share adjusted to exclude straight-line rental income and expense, amortization of acquired below and above market leases, net and other non-cash adjustments. We present these non-GAAP measures to (i) facilitate meaningful comparisons of the operational performance of our properties and segments, (ii) make decisions on whether to buy, sell or refinance properties, and (iii) compare the performance of our properties and segments to those of our peers. Same store NOI at share and same store NOI at share - cash basis should not be considered alternatives to net income or cash flow from operations and may not be comparable to similarly titled measures employed by other companies.
Funds From Operations ("FFO") - FFO is computed in accordance with the definition adopted by the Board of Governors of the National Association of Real Estate Investment Trusts ("NAREIT"). NAREIT defines FFO as GAAP net income or loss adjusted to exclude net gains from sales of depreciable real estate assets, real estate impairment losses, depreciation and amortization expense from real estate assets and other specified items, including the pro rata share of such adjustments of unconsolidated subsidiaries. FFO and FFO per diluted share are non-GAAP financial measures used by management, investors and analysts to facilitate meaningful comparisons of operating performance between periods and among our peers because it excludes the effect of real estate depreciation and amortization and net gains on sales, which are based on historical costs and implicitly assume that the value of real estate diminishes predictably over time, rather than fluctuating based on existing market conditions. FFO does not represent cash generated from operating activities and is not necessarily indicative of cash available to fund cash requirements and should not be considered as an alternative to net income as a performance measure or cash flow as a liquidity measure. FFO may not be comparable to similarly titled measures employed by other companies.
Funds Available For Distribution ("FAD") - FAD is defined as FFO less (i) cash basis recurring tenant improvements, leasing commissions and capital expenditures, (ii) straight-line rents and amortization of acquired below-market leases, net, and (iii) other non-cash income, plus (iv) other non-cash charges. FAD is a non-GAAP financial measure that is not intended to represent cash flow and is not indicative of cash flow provided by operating activities as determined in accordance with GAAP. FAD is presented solely as a supplemental disclosure that management believes provides useful information regarding the Company's ability to fund its dividends.
Net Asset Value ("NAV") - NAV means the sum of the estimated values of our New York Office, New York Retail, New York Residential, theMART and 555 California Street assets, calculated by dividing pro forma 2019 cash basis NOI by the Cap Rate applicable to each such asset category, plus other estimated asset values minus liabilities as of December 31, 2019. “NAV per share” means NAV divided by the number of Vornado common shares outstanding on an Operating Partnership basis as of December 31, 2019. NAV may not be equivalent to enterprise value, and NAV per share may not be equivalent to an appropriate trading price for Vornado common shares. NAV per share is not a representation or guarantee that our common shares will or should trade at this amount, that a shareholder would be able to realize this amount in selling our common shares, that a third party would offer the estimated NAV per share in an offer to purchase all or substantially all of our common shares, that we would actually receive the estimated NAV for the applicable asset or assets upon a sale of those assets, or that a shareholder would receive distributions per share equal to the estimated NAV per share upon sale or liquidation. Investors should not rely on the NAV per share as being an accurate measure of the fair market value of our common shares.
The terms NAV and NAV per share may not be comparable to similar measures presented by others. We consider NAV and NAV per share to be useful supplemental measures which assist both management and investors in estimating the fair value of Vornado. The calculation of NAV and NAV per share involves significant estimates and can be made using various methods. Each individual investor should review our calculation of NAV and NAV per share and make its own determination as to whether the methodology, assumptions and estimates we used to arrive at NAV and NAV per share are appropriate, or whether such investor should use an alternative methodology to perform its own calculations.


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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 Year Ended
December 31,
 
 
December 31,
 
September 30,
2019
 
 
 
2019
 
2018
 
 
2019
 
2018
Net income attributable to common shareholders
(A)
$
193,217

 
$
100,494

 
$
322,906

 
$
3,097,806

 
$
384,832

Per diluted share
 
$
1.01

 
$
0.53

 
$
1.69

 
$
16.21

 
$
2.01

Certain (income) expense items that impact net income attributable to common shareholders:
 
 
 
 
 
 
 
 
 
 
After-tax net gain on sale of 220 CPS condominium units
 
$
(173,655
)
 
$
(67,336
)
 
$
(109,035
)
 
$
(502,565
)
 
$
(67,336
)
Our share of loss (income) from real estate fund investments
 
26,600

 
24,366

 
(1,455
)
 
48,808

 
23,749

Mark-to-market decrease in PREIT common shares (accounted for as a marketable security from March 12, 2019)
 
2,438

 

 
4,875

 
21,649

 

Non-cash impairment losses and related write-offs (primarily 608 Fifth Avenue in 2019)
 
565

 
12,000

 

 
109,157

 
12,000

After-tax purchase price fair value adjustment related to the increase in ownership of the Farley joint venture
 

 
(27,289
)
 

 

 
(27,289
)
Mark-to-market decrease (increase) in Lexington common shares (sold on March 1, 2019)
 

 
1,662

 

 
(16,068
)
 
26,596

Previously capitalized internal leasing costs(1)
 

 
(1,655
)
 

 

 
(5,538
)
Net gains on sale of real estate (primarily our 25% interest in 330 Madison Avenue in 2019)
 

 

 
(178,769
)
 
(178,769
)
 
(27,786
)
Net gain on transfer to Fifth Avenue and Times Square retail JV on April 18, 2019, net of $11,945 attributable to noncontrolling interests
 

 

 

 
(2,559,154
)
 

Net gain from sale of 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

 

Net gain on sale of our ownership interests in 666 Fifth Avenue Office Condominium
 

 

 

 

 
(134,032
)
Our share of additional New York City transfer taxes
 

 

 

 

 
23,503

Preferred share issuance costs
 

 

 

 

 
14,486

Other
 
(2,034
)
 
3,825

 
(4,811
)
 
(2,892
)
 
5,886

 
 
(146,086
)
 
(54,427
)
 
(289,195
)
 
(3,119,689
)
 
(155,761
)
Noncontrolling interests' share of above adjustments
 
9,250

 
3,369

 
18,913

 
198,599

 
9,629

Total of certain (income) expense items that impact net income attributable to common shareholders
(B)
$
(136,836
)
 
$
(51,058
)
 
$
(270,282
)
 
$
(2,921,090
)
 
$
(146,132
)
Per diluted share (non-GAAP)
 
$
(0.72
)
 
$
(0.27
)
 
$
(1.41
)
 
$
(15.29
)
 
$
(0.76
)
 
 
 
 
 
 
 
 
 
 
 
Net income attributable to common shareholders, as adjusted (non-GAAP)
(A+B)
$
56,381

 
$
49,436

 
$
52,624

 
$
176,716

 
$
238,700

Per diluted share (non-GAAP)
 
$
0.29

 
$
0.26

 
$
0.28

 
$
0.92

 
$
1.25

________________________________
(1)
"Net income attributable to common shareholders, as adjusted" for the three months and year ended December 31, 2018 have been reduced by $1,655 and $5,538, or $0.01 and $0.03 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.

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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 Year Ended
December 31,
 
 
December 31,
 
September 30,
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)
$
193,217

 
$
100,494

 
$
322,906

 
$
3,097,806

 
$
384,832

Per diluted share
 
$
1.01

 
$
0.53

 
$
1.69

 
$
16.21

 
$
2.01

 
 
 
 
 
 
 
 
 
 
 
FFO adjustments:
 


 


 


 


 


Depreciation and amortization of real property
 
$
85,609

 
$
104,067

 
$
89,479

 
$
389,024

 
$
413,091

Net losses (gains) on sale of real estate
 
58

 

 
(178,769
)
 
(178,711
)
 
(158,138
)
Real estate impairment losses
 
565

 
12,000

 

 
32,001

 
12,000

Net gain on transfer to Fifth Avenue and Times Square JV on April 18, 2019, net of $11,945 attributable to noncontrolling interests
 

 

 

 
(2,559,154
)
 

Net gain from sale of UE common shares (sold on March 4, 2019)
 

 

 

 
(62,395
)
 

Decrease (increase) in fair value of marketable securities:
 
 
 
 
 
 
 
 
 
 
PREIT
 
2,438

 

 
4,875

 
21,649

 

Lexington (sold on March 1, 2019)
 

 
1,662

 

 
(16,068
)

26,596

Other
 

 
(10
)
 
(7
)
 
(48
)
 
(143
)
After-tax purchase price fair value adjustment on depreciable real estate
 

 
(27,289
)
 

 

 
(27,289
)
Proportionate share of adjustments to equity in net income of partially owned entities to arrive at FFO:
 
 
 
 
 
 
 
 
 
 
Depreciation and amortization of real property
 
37,389

 
24,309

 
37,696

 
134,706

 
101,591

Net gains on sale of real estate
 

 

 

 

 
(3,998
)
Decrease in fair value of marketable securities
 
864

 
2,081

 
291

 
2,852

 
3,882

 
 
126,923

 
116,820

 
(46,435
)
 
(2,236,144
)
 
367,592

Noncontrolling interests' share of above adjustments
 
(8,278
)
 
(7,229
)
 
3,024

 
141,679

 
(22,746
)
FFO adjustments, net
(B)
$
118,645

 
$
109,591

 
$
(43,411
)
 
$
(2,094,465
)
 
$
344,846

 
 
 
 
 
 
 
 
 
 
 
FFO attributable to common shareholders (non-GAAP)
(A+B)
$
311,862

 
$
210,085

 
$
279,495

 
$
1,003,341

 
$
729,678

Convertible preferred share dividends
 
14

 
15

 
14

 
57

 
62

FFO attributable to common shareholders plus assumed conversions (non-GAAP)
 
311,876

 
210,100

 
279,509

 
1,003,398

 
729,740

Add back of FFO allocated to noncontrolling interests of the Operating Partnership
 
20,153

 
13,483

 
18,328

 
64,059

 
46,653

FFO - OP Basis (non-GAAP)
 
$
332,029

 
$
223,583

 
$
297,837

 
$
1,067,457

 
$
776,393

FFO per diluted share (non-GAAP)
 
$
1.63

 
$
1.10

 
$
1.46

 
$
5.25

 
$
3.82


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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 Year Ended
December 31,
 
 
December 31,
 
September 30,
2019
 
 
 
2019
 
2018
 
 
2019
 
2018
FFO attributable to common shareholders plus assumed conversions (non-GAAP)
(A)
$
311,876

 
$
210,100

 
$
279,509

 
$
1,003,398

 
$
729,740

Per diluted share (non-GAAP)
 
$
1.63

 
$
1.10

 
$
1.46

 
$
5.25

 
$
3.82

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
 
$
(173,655
)
 
$
(67,336
)
 
$
(109,035
)
 
$
(502,565
)
 
$
(67,336
)
Our share of loss (income) from real estate fund investments
 
26,600

 
24,366

 
(1,455
)
 
48,808

 
23,749

Previously capitalized internal leasing costs(1)
 

 
(1,655
)
 

 

 
(5,538
)
Non-cash impairment loss and related write-offs on 608 Fifth Avenue
 

 

 

 
77,156

 

Prepayment penalty in connection with redemption of $400 million 5.00% senior unsecured notes due January 2022
 

 

 

 
22,540

 

Our share of additional New York City transfer taxes
 

 

 

 

 
23,503

Preferred share issuance costs
 

 

 

 

 
14,486

Other
 
(3,187
)
 
1,745

 
(5,229
)
 
(6,119
)
 
(6,109
)
 
 
(150,242
)
 
(42,880
)
 
(115,719
)
 
(360,180
)
 
(17,245
)
Noncontrolling interests' share of above adjustments
 
9,396

 
2,654

 
7,176

 
22,989

 
993

Total of certain (income) expense items that impact FFO attributable to common shareholders plus assumed conversions, net
(B)
$
(140,846
)
 
$
(40,226
)
 
$
(108,543
)
 
$
(337,191
)
 
$
(16,252
)
Per diluted share (non-GAAP)
 
$
(0.74
)
 
$
(0.21
)
 
$
(0.57
)
 
$
(1.76
)
 
$
(0.09
)
 
 
 
 
 
 
 
 
 
 
 
FFO attributable to common shareholders plus assumed conversions, as adjusted (non-GAAP)
(A+B)
$
171,030

 
$
169,874

 
$
170,966

 
$
666,207

 
$
713,488

Per diluted share (non-GAAP)
 
$
0.89

 
$
0.89

 
$
0.89

 
$
3.49

 
$
3.73

________________________________
(1)
"FFO attributable to common shareholders plus assumed conversions, as adjusted" for the three months and year ended December 31, 2018 have been reduced by $1,655 and $5,538, or $0.01 and $0.03 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.


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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 Year Ended
December 31,
 
 
December 31,
 
September 30,
2019
 
 
 
2019
 
2018
 
 
2019
 
2018
FFO attributable to common shareholders plus assumed conversions (non-GAAP)
(A)
$
311,876

 
$
210,100

 
$
279,509

 
$
1,003,398

 
$
729,740

 
 
 
 
 
 
 
 
 
 
 
Adjustments to arrive at FAD (non-GAAP):
 
 
 
 
 
 
 
 
 
 
Certain items that impact FAD
 
(149,907
)
 
(40,968
)
 
(117,506
)
 
(369,977
)
 
(10,759
)
Recurring tenant improvements, leasing commissions and other capital expenditures
 
(45,937
)
 
(66,230
)
 
(73,313
)
 
(222,565
)
 
(237,757
)
Non-cash adjustments for straight-line rents, amortization of acquired below-market leases, net and other
 
(6,590
)
 
(5,532
)
 
(4,037
)
 
(6,060
)
 
(44,704
)
Amortization of debt issuance costs
 
6,767

 
9,033

 
6,934

 
32,354

 
38,281

Stock-based compensation expense
 
5,863

 
5,532

 
5,871

 
53,908

 
31,722

Personal property depreciation
 
1,986

 
1,490

 
1,673

 
6,743

 
6,052

Noncontrolling interests in the Operating Partnership's share of above adjustments
 
12,246

 
6,084

 
11,797

 
32,207

 
13,486

FAD adjustments, net(1)
(B)
(175,572
)
 
(90,591
)
 
(168,581
)
 
(473,390
)
 
(203,679
)
 
 
 
 
 
 
 
 
 
 
 
FAD (non-GAAP)
(A+B)
$
136,304


$
119,509


$
110,928

 
$
530,008

 
$
526,061

 
 
 
 
 
 
 
 
 
 
 
FAD payout ratio (2)
 
93.0
%
 
100.0
%
 
113.8
%
 
95.3
%
 
91.6
%
________________________________
(1)
Certain prior year adjustments have been restated in order to conform to the current period presentation which includes our share of partially owned entities.
(2)
FAD payout ratios on a quarterly basis are not necessarily indicative of amounts for the full year due to fluctuation in timing of cash based expenditures, the commencement of new leases and the seasonality of our operations.

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NON-GAAP RECONCILIATIONS
RECONCILIATION OF 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 Year Ended
December 31,
 
December 31,
 
September 30, 2019
 
 
2019
 
2018
 
 
2019
 
2018
Net income
$
160,676

 
$
97,821

 
$
363,849

 
$
3,334,262

 
$
422,603

Depreciation and amortization expense
92,926

 
112,869

 
96,437

 
419,107

 
446,570

General and administrative expense
39,791

 
32,934

 
33,237

 
169,920

 
141,871

Transaction related costs, impairment losses and other
3,223

 
14,637

 
1,576

 
106,538

 
31,320

Income from partially owned entities
(22,726
)
 
(3,090
)
 
(25,946
)
 
(78,865
)
 
(9,149
)
Loss (income) from real estate fund investments
90,302

 
51,258

 
(2,190
)
 
104,082

 
89,231

Interest and other investment income, net
(5,889
)
 
(7,656
)
 
(3,045
)
 
(21,819
)
 
(17,057
)
Interest and debt expense
59,683

 
83,175

 
61,448

 
286,623

 
347,949

Net gain on transfer to Fifth Avenue and Times Square JV

 

 

 
(2,571,099
)
 

Purchase price fair value adjustment

 
(44,060
)
 

 

 
(44,060
)
Net gains on disposition of wholly owned and partially owned assets
(203,835
)
 
(81,203
)
 
(309,657
)
 
(845,499
)
 
(246,031
)
Income tax expense
22,897

 
32,669

 
23,885

 
103,439

 
37,633

(Income) loss from discontinued operations
(55
)
 
(257
)
 
8

 
30

 
(638
)
NOI from partially owned entities
85,990

 
60,205

 
86,024

 
322,390

 
253,564

NOI attributable to noncontrolling interests in consolidated subsidiaries
(17,417
)
 
(19,771
)
 
(18,096
)
 
(69,332
)
 
(71,186
)
NOI at share
305,566

 
329,531

 
307,530

 
1,259,777

 
1,382,620

Non cash adjustments for straight-line rents, amortization of acquired below-market leases, net and other
(6,590
)
 
(5,532
)
 
(4,037
)
 
(6,060
)
 
(44,704
)
NOI at share - cash basis
$
298,976

 
$
323,999

 
$
303,493

 
$
1,253,717

 
$
1,337,916




- vi -


 https://cdn.kscope.io/6b76d8e44602142e0060a4e1928a397d-vornadologoa11.jpg

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 December 31,
 
Total Revenues
 
Operating Expenses
 
NOI
 
Non-cash Adjustments(1)
 
NOI - cash basis
 
2019
 
2018
 
2019
 
2018
 
2019
 
2018
 
2019
 
2018
 
2019
 
2018
New York
$
377,626

 
$
466,554

 
$
(184,231
)
 
$
(206,696
)
 
$
193,395

 
$
259,858

 
$
(3,667
)
 
$
(4,219
)
 
$
189,728

 
$
255,639

Other
83,342

 
76,863

 
(39,744
)
 
(47,624
)
 
43,598

 
29,239

 
1,949

 
1,572

 
45,547

 
30,811

Consolidated total
460,968

 
543,417

 
(223,975
)
 
(254,320
)
 
236,993

 
289,097

 
(1,718
)
 
(2,647
)
 
235,275

 
286,450

Noncontrolling interests' share in consolidated subsidiaries
(29,910
)
 
(30,436
)
 
12,493

 
10,665

 
(17,417
)
 
(19,771
)
 
605

 
96

 
(16,812
)
 
(19,675
)
Our share of partially owned entities
131,036

 
98,363

 
(45,046
)
 
(38,158
)
 
85,990

 
60,205

 
(5,477
)
 
(2,981
)
 
80,513

 
57,224

Vornado's share
$
562,094

 
$
611,344

 
$
(256,528
)
 
$
(281,813
)
 
$
305,566

 
$
329,531

 
$
(6,590
)
 
$
(5,532
)
 
$
298,976

 
$
323,999


 
For the Three Months Ended September 30, 2019
 
Total Revenues
 
Operating Expenses
 
NOI
 
Non-cash Adjustments(1)
 
NOI - cash basis
New York
$
380,568

 
$
(188,159
)
 
$
192,409

 
$
(314
)
 
$
192,095

Other
85,393

 
(38,200
)
 
47,193

 
1,586

 
48,779

Consolidated total
465,961

 
(226,359
)
 
239,602

 
1,272

 
240,874

Noncontrolling interests' share in consolidated subsidiaries
(29,669
)
 
11,573

 
(18,096
)
 
552

 
(17,544
)
Our share of partially owned entities
129,873

 
(43,849
)
 
86,024

 
(5,861
)
 
80,163

Vornado's share
$
566,165

 
$
(258,635
)
 
$
307,530

 
$
(4,037
)
 
$
303,493


 
For the Year Ended December 31,
 
Total Revenues
 
Operating Expenses
 
NOI
 
Non-cash Adjustments(1)
 
NOI - cash basis
 
2019
 
2018
 
2019
 
2018
 
2019
 
2018
 
2019
 
2018
 
2019
 
2018
New York
$
1,577,860

 
$
1,836,036

 
$
(758,304
)
 
$
(806,464
)
 
$
819,556

 
$
1,029,572

 
$
4,244

 
$
(38,856
)
 
$
823,800

 
$
990,716

Other
346,840

 
327,684

 
(159,677
)
 
(157,014
)
 
187,163

 
170,670

 
6,934

 
1,823

 
194,097

 
172,493

Consolidated total
1,924,700

 
2,163,720

 
(917,981
)
 
(963,478
)
 
1,006,719

 
1,200,242

 
11,178

 
(37,033
)
 
1,017,897

 
1,163,209

Noncontrolling interests' share in consolidated subsidiaries
(114,145
)
 
(111,982
)
 
44,813

 
40,796

 
(69,332
)
 
(71,186
)
 
1,315

 
902

 
(68,017
)
 
(70,284
)
Our share of partially owned entities
492,638

 
418,819

 
(170,248
)
 
(165,255
)
 
322,390

 
253,564

 
(18,553
)
 
(8,573
)
 
303,837

 
244,991

Vornado's share
$
2,303,193

 
$
2,470,557

 
$
(1,043,416
)
 
$
(1,087,937
)
 
$
1,259,777

 
$
1,382,620

 
$
(6,060
)
 
$
(44,704
)
 
$
1,253,717

 
$
1,337,916

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

- vii -


 https://cdn.kscope.io/6b76d8e44602142e0060a4e1928a397d-vornadologoa11.jpg

NON-GAAP RECONCILIATIONS
RECONCILIATION OF NOI AT SHARE TO SAME STORE NOI AT SHARE FOR THE THREE MONTHS ENDED DECEMBER 31, 2019 COMPARED TO DECEMBER 31, 2018 (unaudited)
(Amounts in thousands)
 
 
 
 
 
 
 
 
 
 
 
 
 
Total
 
New York
 
theMART
 
555 California Street
 
Other
NOI at share for the three months ended December 31, 2019
$
305,566

 
$
266,284

 
$
22,712

 
$
14,533

 
$
2,037

Less NOI at share from:
 
 
 
 
 
 
 
 
 
Acquisitions
(122
)
 
(122
)
 

 

 

Dispositions
(62
)
 
(62
)
 

 

 

Development properties
(16,082
)
 
(16,082
)
 

 

 

Other non-same store (income) expense, net
(8,164
)
 
(5,969
)
 
(172
)
 
14

 
(2,037
)
Same store NOI at share for the three months ended December 31, 2019
$
281,136

 
$
244,049

 
$
22,540

 
$
14,547

 
$

 
 
 
 
 
 
 
 
 
 
NOI at share for the three months ended December 31, 2018
$
329,531

 
$
295,199

 
$
10,981

 
$
14,005

 
$
9,346

Less NOI at share from:
 
 
 
 
 
 
 
 
 
Change in ownership interests in properties contributed to Fifth Avenue and Times Square JV
(28,683
)
 
(28,683
)
 

 

 

Dispositions
(3,614
)
 
(3,614
)
 

 

 

Development properties
(21,797
)
 
(21,811
)
 

 
14

 

Other non-same store (income) expense, net
(13,041
)
 
(3,291
)
 
(463
)
 
59

 
(9,346
)
Same store NOI at share for the three months ended December 31, 2018
$
262,396

 
$
237,800

 
$
10,518

 
$
14,078

 
$

 
 
 
 
 
 
 
 
 
 
Increase in same store NOI at share for the three months ended December 31, 2019 compared to December 31, 2018
$
18,740

 
$
6,249

 
$
12,022

 
$
469

 
$

 
 
 
 
 
 
 
 
 
 
% increase in same store NOI at share
7.1
%
 
2.6
%
(1) 
114.3
%
(2) 
3.3
%
 
%
________________________________
(1)
Excluding Hotel Pennsylvania, same store NOI at share remained unchanged.
(2)
The three months ended December 31, 2018 includes an additional $12,814 real estate tax expense accrual due to an increase in the tax-assessed value of theMART.

- viii -


 https://cdn.kscope.io/6b76d8e44602142e0060a4e1928a397d-vornadologoa11.jpg

NON-GAAP RECONCILIATIONS
RECONCILIATION OF NOI AT SHARE TO SAME STORE NOI AT SHARE FOR THE YEAR ENDED DECEMBER 31, 2019 COMPARED TO DECEMBER 31, 2018 (unaudited)
(Amounts in thousands)
 
 
 
 
 
 
 
 
 
 
 
 
 
Total
 
New York
 
theMART
 
555 California Street
 
Other
NOI at share for the year ended December 31, 2019
$
1,259,777

 
$
1,072,828

 
$
102,071

 
$
59,657

 
$
25,221

Less NOI at share from:
 
 
 
 
 
 
 
 
 
Acquisitions
(334
)
 
(334
)
 

 

 

Change in ownership interests in properties contributed to Fifth Avenue and Times Square JV
(5,479
)
 
(5,479
)
 

 

 

Dispositions
(7,420
)
 
(7,420
)
 

 

 

Development properties
(54,099
)
 
(54,099
)
 

 

 

Other non-same store (income) expense, net
(33,028
)
 
(5,585
)
 
(2,635
)
 
413

 
(25,221
)
Same store NOI at share for the year ended December 31, 2019
$
1,159,417

 
$
999,911

 
$
99,436

 
$
60,070

 
$

 
 
 
 
 
 
 
 
 
 
NOI at share for the year ended December 31, 2018
$
1,382,620

 
$
1,176,990

 
$
90,929

 
$
54,691

 
$
60,010

Less NOI at share from:
 
 
 
 
 
 
 
 
 
Acquisitions
(121
)
 
(121
)
 

 

 

Change in ownership interests in properties contributed to Fifth Avenue and Times Square JV
(84,020
)
 
(84,020
)
 

 

 

Dispositions
(14,949
)
 
(14,949
)
 

 

 

Development properties
(74,720
)
 
(74,720
)
 

 

 

Other non-same store (income) expense, net
(72,930
)
 
(7,825
)
 
(5,155
)
 
60

 
(60,010
)
Same store NOI at share for the year ended December 31, 2018
$
1,135,880

 
$
995,355

 
$
85,774

 
$
54,751

 
$

 
 
 
 
 
 
 
 
 
 
Increase in same store NOI at share for the year ended December 31, 2019 compared to December 31, 2018
$
23,537

 
$
4,556

 
$
13,662

 
$
5,319

 
$

 
 
 
 
 
 
 
 
 
 
% increase in same store NOI at share
2.1
%
 
0.5
%
(1) 
15.9
%
(2) 
9.7
%
 
%
________________________________
(1)
Excluding Hotel Pennsylvania, same store NOI at share increased by 0.9%.
(2)
Primarily due to $11,131 of tenant reimbursement revenue received in 2019 related to real estate tax expense accrued in 2018.

- ix -


 https://cdn.kscope.io/6b76d8e44602142e0060a4e1928a397d-vornadologoa11.jpg

NON-GAAP RECONCILIATIONS
RECONCILIATION OF NOI AT SHARE TO SAME STORE NOI AT SHARE FOR THE THREE MONTHS ENDED DECEMBER 31, 2019 COMPARED TO SEPTEMBER 30, 2019 (unaudited)
(Amounts in thousands)
 
 
 
 
 
 
 
 
 
 
 
 
 
Total
 
New York
 
theMART
 
555 California Street
 
Other
NOI at share for the three months ended December 31, 2019
$
305,566

 
$
266,284

 
$
22,712

 
$
14,533

 
$
2,037

Less NOI at share from:
 
 
 
 
 
 
 
 
 
Acquisitions
(118
)
 
(118
)
 

 

 

Dispositions
(62
)
 
(62
)
 

 

 

Development properties
(16,087
)
 
(16,087
)
 

 

 

Other non-same store (income) expense, net
(8,103
)
 
(5,968
)
 
(172
)
 
74

 
(2,037
)
Same store NOI at share for the three months ended December 31, 2019
$
281,196

 
$
244,049

 
$
22,540

 
$
14,607

 
$

 
 
 
 
 
 
 
 
 
 
NOI at share for the three months ended September 30, 2019
$
307,530

 
$
265,484

 
$
24,862

 
$
15,265

 
$
1,919

Less NOI at share from:
 
 
 
 
 
 
 
 
 
Dispositions
(262
)
 
(262
)
 

 

 

Development properties
(19,429
)
 
(19,429
)
 

 

 

Other non-same store (income) expense, net
(11,254
)
 
(8,877
)
 
(532
)
 
74

 
(1,919
)
Same store NOI at share for the three months ended September 30, 2019
$
276,585

 
$
236,916

 
$
24,330

 
$
15,339

 
$

 
 
 
 
 
 
 
 
 
 
Increase (decrease) in same store NOI at share for the three months ended December 31, 2019 compared to September 30, 2019
$
4,611

 
$
7,133

 
$
(1,790
)
 
$
(732
)
 
$

 
 
 
 
 
 
 
 
 
 
% increase (decrease) in same store NOI at share
1.7
%
 
3.0
%
(1) 
(7.4
)%
 
(4.8
)%
 
%
________________________________
(1)
Excluding Hotel Pennsylvania, same store NOI at share increased by 1.7%.


- x -


 https://cdn.kscope.io/6b76d8e44602142e0060a4e1928a397d-vornadologoa11.jpg

NON-GAAP RECONCILIATIONS
RECONCILIATION OF NOI AT SHARE - CASH BASIS TO SAME STORE NOI AT SHARE - CASH BASIS FOR THE THREE MONTHS ENDED DECEMBER 31, 2019 COMPARED TO DECEMBER 31, 2018 (unaudited)
(Amounts in thousands)
 
 
 
 
 
 
 
 
 
 
 
 
 
Total
 
New York
 
theMART
 
555 California Street
 
Other
NOI at share - cash basis for the three months ended December 31, 2019
$
298,976

 
$
257,707

 
$
24,646

 
$
14,491

 
$
2,132

Less NOI at share - cash basis from:
 
 
 
 
 
 
 
 
 
Acquisitions
(54
)
 
(54
)
 

 

 

Dispositions
(66
)
 
(66
)
 

 

 

Development properties
(16,948
)
 
(16,948
)
 

 

 

Other non-same store income, net
(9,736
)
 
(7,373
)
 
(172
)
 
(59
)
 
(2,132
)
Same store NOI at share - cash basis for the three months ended December 31, 2019
$
272,172

 
$
233,266

 
$
24,474

 
$
14,432

 
$

 
 
 
 
 
 
 
 
 
 
NOI at share - cash basis for the three months ended December 31, 2018
$
323,999

 
$
288,933

 
$
12,758

 
$
13,784

 
$
8,524

Less NOI at share - cash basis from:
 
 
 
 
 
 
 
 
 
Change in ownership interests in properties contributed to Fifth Avenue and Times Square JV
(27,243
)
 
(27,243
)
 

 

 

Dispositions
(3,870
)
 
(3,870
)
 

 

 

Development properties
(24,090
)
 
(24,104
)
 

 
14

 

Other non-same store (income) expense, net
(13,400
)
 
(4,416
)
 
(520
)
 
60

 
(8,524
)
Same store NOI at share - cash basis for the three months ended December 31, 2018
$
255,396

 
$
229,300

 
$
12,238

 
$
13,858

 
$

 
 
 
 
 
 
 
 
 
 
Increase in same store NOI at share - cash basis for the three months ended December 31, 2019 compared to December 31, 2018
$
16,776

 
$
3,966

 
$
12,236

 
$
574

 
$

 
 
 
 
 
 
 
 
 
 
% increase in same store NOI at share - cash basis
6.6
%
 
1.7
%
(1) 
100.0
%
(2) 
4.1
%
 
%
________________________________
(1)
Excluding Hotel Pennsylvania, same store NOI at share - cash basis increased by 1.8%.
(2)
The three months ended December 31, 2018 includes an additional $12,814 real estate tax expense accrual due to an increase in the tax-assessed value of theMART.

- xi -


 https://cdn.kscope.io/6b76d8e44602142e0060a4e1928a397d-vornadologoa11.jpg

NON-GAAP RECONCILIATIONS
RECONCILIATION OF NOI AT SHARE - CASH BASIS TO SAME STORE NOI AT SHARE - CASH BASIS FOR THE YEAR ENDED DECEMBER 31, 2019 COMPARED TO DECEMBER 31, 2018 (unaudited)
(Amounts in thousands)
 
 
 
 
 
 
 
 
 
 
 
 
 
Total
 
New York
 
theMART
 
555 California Street
 
Other
NOI at share - cash basis for the year ended December 31, 2019
$
1,253,717

 
$
1,060,510

 
$
108,130

 
$
60,156

 
$
24,921

Less NOI at share - cash basis from:
 
 
 
 
 
 
 
 
 
Acquisitions
(266
)
 
(266
)
 

 

 

Change in ownership interests in properties contributed to Fifth Avenue and Times Square JV
(5,183
)
 
(5,183
)
 

 

 

Dispositions
(8,219
)
 
(8,219
)
 

 

 

Development properties
(64,359
)
 
(64,359
)
 

 

 

Other non-same store (income) expense, net
(52,594
)
 
(24,892
)
 
(2,973
)
 
192

 
(24,921
)
Same store NOI at share - cash basis for the year ended December 31, 2019
$
1,123,096

 
$
957,591

 
$
105,157

 
$
60,348

 
$

 
 
 
 
 
 
 
 
 
 
NOI at share - cash basis for the year ended December 31, 2018
$
1,337,916

 
$
1,131,563

 
$
94,070

 
$
53,488

 
$
58,795

Less NOI at share - cash basis from:
 
 
 
 
 
 
 
 
 
Acquisitions
(121
)
 
(121
)
 

 

 

Change in ownership interests in properties contributed to Fifth Avenue and Times Square JV
(79,427
)
 
(79,427
)
 

 

 

Dispositions
(14,764
)
 
(14,764
)
 

 

 

Development properties
(81,137
)
 
(81,137
)
 

 

 

Other non-same store (income) expense, net
(78,119
)
 
(14,011
)
 
(5,373
)
 
60

 
(58,795
)
Same store NOI at share - cash basis for the year ended December 31, 2018
$
1,084,348

 
$
942,103

 
$
88,697

 
$
53,548

 
$

 
 
 
 
 
 
 
 
 
 
Increase in same store NOI at share - cash basis for the year ended December 31, 2019 compared to December 31, 2018
$
38,748

 
$
15,488

 
$
16,460

 
$
6,800

 
$

 
 
 
 
 
 
 
 
 
 
% increase in same store NOI at share - cash basis
3.6
%
 
1.6
%
(1) 
18.6
%
(2) 
12.7
%
 
%
________________________________
(1)
Excluding Hotel Pennsylvania, same store NOI at share - cash basis increased by 2.2%.
(2)
Primarily due to $11,131 of tenant reimbursement revenue received in 2019 related to real estate tax expense accrued in 2018.



- xii -


 https://cdn.kscope.io/6b76d8e44602142e0060a4e1928a397d-vornadologoa11.jpg

NON-GAAP RECONCILIATIONS
RECONCILIATION OF NOI AT SHARE - CASH BASIS TO SAME STORE NOI AT SHARE - CASH BASIS FOR THE THREE MONTHS ENDED DECEMBER 31, 2019 COMPARED TO SEPTEMBER 30, 2019 (unaudited)
(Amounts in thousands)
 
 
 
 
 
 
 
 
 
 
 
 
 
Total
 
New York
 
theMART
 
555 California Street
 
Other
NOI at share - cash basis for the three months ended December 31, 2019
$
298,976

 
$
257,707

 
$
24,646

 
$
14,491

 
$
2,132

Less NOI at share - cash basis from:
 
 
 
 
 
 
 
 
 
Acquisitions
(49
)
 
(49
)
 

 

 

Dispositions
(66
)
 
(66
)
 

 

 

Development properties
(16,952
)
 
(16,952
)
 

 

 

Other non-same store income, net
(9,678
)
 
(7,374
)
 
(172
)
 

 
(2,132
)
Same store NOI at share - cash basis for the three months ended December 31, 2019
$
272,231

 
$
233,266

 
$
24,474

 
$
14,491

 
$

 
 
 
 
 
 
 
 
 
 
NOI at share - cash basis for the three months ended September 30, 2019
$
303,493

 
$
259,924

 
$
26,588

 
$
15,325

 
$
1,656

Less NOI at share - cash basis from:
 
 
 
 
 
 
 
 
 
Dispositions
(693
)
 
(693
)
 

 

 

Development properties
(24,641
)
 
(24,641
)
 

 

 

Other non-same store income, net
(12,701
)
 
(10,174
)
 
(871
)
 

 
(1,656
)
Same store NOI at share - cash basis for the three months ended September 30, 2019
$
265,458

 
$
224,416

 
$
25,717

 
$
15,325

 
$

 
 
 
 
 
 
 
 
 
 
Increase (decrease) in same store NOI at share - cash basis for the three months ended December 31, 2019 compared to September 30, 2019
$
6,773

 
$
8,850

 
$
(1,243
)
 
$
(834
)
 
$

 
 
 
 
 
 
 
 
 
 
% increase (decrease) in same store NOI at share - cash basis
2.6
%
 
3.9
%
(1) 
(4.8
)%
 
(5.4
)%
 
%
________________________________
(1)
Excluding Hotel Pennsylvania, same store NOI at share - cash basis increased by 2.6%.



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NON-GAAP RECONCILIATIONS
RECONCILIATION OF CONSOLIDATED REVENUES TO OUR PRO RATA SHARE OF REVENUES (ANNUALIZED) (unaudited)
(Amounts in thousands)
 
 
 
For the
Three Months Ended
December 31, 2019
Consolidated revenues
$
460,968

Noncontrolling interest adjustments
(29,910
)
Consolidated revenues at our share (non-GAAP)
431,058

Unconsolidated revenues at our share (non-GAAP)
131,036

Our pro rata share of revenues (non-GAAP)
$
562,094

Our pro rata share of revenues (annualized) (non-GAAP)
$
2,248,376



RECONCILIATION OF CONSOLIDATED DEBT, NET TO CONTRACTUAL DEBT (NON-GAAP) (unaudited)
(Amounts in thousands)
 
 
 
 
 
 
 
As of December 31, 2019
 
Consolidated
Debt, net
 
Deferred Financing
Costs, Net and Other
 
Contractual
Debt (non-GAAP)
Mortgages payable
$
5,639,897

 
$
30,119

 
$
5,670,016

Senior unsecured notes
445,872

 
4,128

 
450,000

$750 Million unsecured term loan
745,840

 
4,160

 
750,000

$2.75 Billion unsecured revolving credit facilities
575,000

 

 
575,000

 
$
7,406,609

 
$
38,407

 
$
7,445,016


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NON-GAAP RECONCILIATIONS
RECONCILIATION OF NET INCOME TO EBITDAre (unaudited)
(Amounts in thousands)
    
EBITDAre (i.e., EBITDA for real estate companies) is a non-GAAP financial measure established by NAREIT, which may not be comparable to EBITDA reported by other REITs that do not compute EBITDA in accordance with the NAREIT definition. The White Paper on EBITDAre approved by the Board of Governors of NAREIT in September 2017 defines EBITDAre as GAAP net income (loss), plus interest expense, plus income tax expense, plus depreciation and amortization, plus (minus) losses and gains on the disposition of depreciated property including losses and gains on change of control, plus impairment write-downs of depreciated property and of investments in unconsolidated joint ventures caused by a decrease in value of depreciated property in the joint venture, plus adjustments to reflect the entity's share of EBITDA of unconsolidated joint ventures. The Company has included EBITDAre because it is a performance measure used by other REITs and therefore may provide useful information to investors in comparing Vornado's performance to that of other REITs.

 
For the Three Months Ended
 
For the Year Ended December 31, 2019
 
December 31,
 
September 30,
2019
 
 
2019
 
2018
 
 
2019
 
2018
Reconciliation of net income to EBITDAre (non-GAAP):
 
 
 
 
 
 
 
 
 
Net income
$
160,676

 
$
97,821

 
$
363,849

 
$
3,334,262

 
$
422,603

Less net loss (income) attributable to noncontrolling interests in consolidated subsidiaries
58,592

 
21,886

 
(5,774
)
 
24,547

 
53,023

Net income attributable to the Operating Partnership
219,268

 
119,707

 
358,075

 
3,358,809

 
475,626

EBITDAre adjustments at share:
 
 
 
 
 
 
 
 
 
Net gains on sales of depreciable real estate
58

 

 
(178,769
)
 
(178,711
)
 
(162,136
)
Depreciation and amortization expense
124,984

 
129,866

 
128,848

 
530,473

 
520,791

Interest and debt expense
86,832

 
106,267

 
87,252

 
390,139

 
448,290

Income tax expense
22,975

 
32,797

 
24,012

 
103,917

 
38,003

Net gain on transfer to Fifth Avenue and Times Square JV on April 18, 2019, net of $11,945 attributable to noncontrolling interests

 

 

 
(2,559,154
)
 

Real estate impairment losses
565

 
12,000

 

 
32,001

 
12,000

EBITDAre at share
454,682

 
400,637

 
419,418

 
1,677,474

 
1,332,574

EBITDAre attributable to noncontrolling interests in consolidated subisidiaries
(52,531
)
 
(8,393
)
 
20,309

 
8,150

 
(1,314
)
EBITDAre (non-GAAP)
$
402,151

 
$
392,244

 
$
439,727

 
$
1,685,624

 
$
1,331,260



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NON-GAAP RECONCILIATIONS
RECONCILIATION OF EBITDAre TO EBITDAre, AS ADJUSTED (unaudited)
 
 
 
 
(Amounts in thousands)
 
 
 
 
For the Three Months Ended
 
For the Year Ended December 31, 2019
 
December 31,
 
September 30,
2019
 
 
2019
 
2018
 
 
2019
 
2018
EBITDAre (non-GAAP)
$
402,151

 
$
392,244

 
$
439,727

 
$
1,685,624

 
$
1,331,260

 
 
 
 
 
 
 
 
 
 
EBITDAre attributable to noncontrolling interests in consolidated subsidiaries
52,531

 
8,393

 
(20,309
)
 
(8,150
)
 
1,314

 
 
 
 
 
 
 
 
 
 
Certain (income) expense items that impact EBITDAre:
 
 
 
 
 
 
 
 
 
Gain on sale of 220 CPS condominium units
(203,893
)
 
(81,224
)
 
(130,888
)
 
(604,393
)
 
(81,224
)
Our share of loss (income) from real estate fund investments
26,600

 
24,366

 
(1,455
)
 
48,808

 
23,749

Mark-to-market decrease in PREIT common shares (accounted for as a marketable security from March 12, 2019)
2,438

 

 
4,875

 
21,649

 

Purchase price fair value adjustment related to Farley Post Office

 
(44,060
)
 

 

 
(44,060
)
Mark-to-market decrease (increase) in Lexington common shares (sold on March 1, 2019)

 
1,662

 

 
(16,068
)
 
26,596

Previously capitalized internal leasing costs(1)

 
(1,655
)
 

 

 
(5,538
)
Non-cash impairment loss and related write-offs on 608 Fifth Avenue

 

 

 
77,156

 

Net gain from sale of UE common shares (sold on March 4, 2019)

 

 

 
(62,395
)
 

Our share of additional New York City transfer taxes

 

 

 

 
23,503

Other
4,146

 
3,816

 
(5,320
)
 
1,650

 
(18,499
)
Total of certain (income) expense items that impact EBITDAre
(170,709
)
 
(97,095
)
 
(132,788
)
 
(533,593
)
 
(75,473
)
 
 
 
 
 
 
 
 
 
 
EBITDAre, as adjusted (non-GAAP)
$
283,973

 
$
303,542

 
$
286,630

 
$
1,143,881

 
$
1,257,101

________________________________
(1)
"EBITDAre, as adjusted" for the three months and year ended December 31, 2018 have been reduced by $1,655 and $5,538, 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.



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