Document
falsefalse00008996890001040765VORNADO REALTY LP 0000899689 2020-05-04 2020-05-04 0000899689 vno:VornadoRealtyLpMember 2020-05-04 2020-05-04 0000899689 exch:XNYS vno:SeriesMPreferredStockMember 2020-05-04 2020-05-04 0000899689 exch:XNYS us-gaap:CommonStockMember 2020-05-04 2020-05-04 0000899689 exch:XNYS vno:SeriesKPreferredStockMember 2020-05-04 2020-05-04 0000899689 exch:XNYS vno:SeriesLPreferredStockMember 2020-05-04 2020-05-04


 
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):
May 4, 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 May 4, 2020, Vornado Realty Trust (the “Company”), the general partner of Vornado Realty L.P., issued a press release announcing its financial results for the first quarter of 2020.  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 May 4, 2020
 
 
Vornado Realty Trust supplemental operating and financial data for the quarter ended March 31, 2020



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: May 5, 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: May 5, 2020


3

Exhibit
EXHIBIT 99.1


https://cdn.kscope.io/b2f14cb77327575929dd0b4f568858d3-vnortlogoblack2a34.jpg

Vornado Announces First Quarter 2020 Financial Results

May 4, 2020 04:30 PM Eastern Standard Time

NEW YORK.......VORNADO REALTY TRUST (NYSE: VNO) reported today:
Quarter Ended March 31, 2020 Financial Results
NET INCOME attributable to common shareholders for the quarter ended March 31, 2020 was $4,963,000, or $0.03 per diluted share, compared to $181,488,000, or $0.95 per diluted share, for the prior year's quarter. Adjusting for the items that impact period-to-period comparability listed in the table below, net income attributable to common shareholders, as adjusted (non-GAAP) for the quarters ended March 31, 2020 and 2019 was $20,233,000 and $24,814,000, or $0.11 and $0.13 per diluted share, respectively.
FUNDS FROM OPERATIONS ("FFO") attributable to common shareholders plus assumed conversions (non-GAAP) for the quarter ended March 31, 2020 was $130,360,000, or $0.68 per diluted share, compared to $247,684,000, or $1.30 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, FFO attributable to common shareholders plus assumed conversions, as adjusted (non-GAAP) for the quarters ended March 31, 2020 and 2019 was $137,567,000 and $149,939,000, or $0.72 and $0.79 per diluted share, respectively.
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
March 31,
 
2020
 
2019
Net income attributable to common shareholders
$
4,963

 
$
181,488

Per diluted share
$
0.03

 
$
0.95

 
 
 
 
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
$
(59,911
)
 
$
(130,954
)
Our share of loss from real estate fund investments
56,158

 
2,904

Credit losses on loans receivable resulting from a new GAAP accounting standard effective January 1, 2020
7,261

 

Mark-to-market decrease in Pennsylvania Real Estate Trust Investment ("PREIT") common shares (accounted for as a marketable security from March 12, 2019 and sold on January 23, 2020)
4,938

 
15,649

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

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

 
(16,068
)
Other
7,896

 
1,152

 
16,342

 
(167,172
)
Noncontrolling interests' share of above adjustments
(1,072
)
 
10,498

Total of certain expense (income) items that impact net income attributable to common shareholders
$
15,270

 
$
(156,674
)
 
 
 
 
Net income attributable to common shareholders, as adjusted (non-GAAP)
$
20,233

 
$
24,814

Per diluted share (non-GAAP)
$
0.11

 
$
0.13


1


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
March 31,
 
2020
 
2019
FFO attributable to common shareholders plus assumed conversions (non-GAAP)(1)
$
130,360

 
$
247,684

Per diluted share (non-GAAP)
$
0.68

 
$
1.30

 
 
 
 
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
$
(59,911
)
 
$
(130,954
)
Our share of loss from real estate fund investments
56,158

 
2,904

Credit losses on loans receivable resulting from a new GAAP accounting standard effective January 1, 2020
7,261

 

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

 
22,540

Other
4,205

 
1,206

 
7,713

 
(104,304
)
Noncontrolling interests' share of above adjustments
(506
)
 
6,559

Total of certain expense (income) items that impact FFO attributable to common shareholders plus assumed conversions, net
$
7,207

 
$
(97,745
)
 
 
 
 
FFO attributable to common shareholders plus assumed conversions, as adjusted (non-GAAP)
$
137,567

 
$
149,939

Per diluted share (non-GAAP)
$
0.72

 
$
0.79

____________________________________________________________
(1)
See page 9 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 ended March 31, 2020 and 2019.

2


COVID-19 Pandemic
In December 2019, a novel strain of coronavirus (“COVID-19”) was identified in Wuhan, China and by March 11, 2020, the World Health Organization had declared it a global pandemic. Many states in the U.S., including New York, New Jersey, Illinois and California have implemented stay-at-home orders for all "non-essential" business and activity in an aggressive effort to curb the spread of the virus. Consequently, the U.S. economy has suffered and there has been significant volatility in the financial markets. Many U.S. industries and businesses have been negatively affected and millions of people have filed for unemployment.
As our first priority, we are following strict protocols and taking all measures to protect our employees, tenants, and communities.
Our properties, which are concentrated in New York City, and in Chicago and San Francisco, have been adversely affected as a result of the COVID-19 pandemic and the preventive measures taken to curb the spread. Some of the effects on us include the following:
With the exception of grocery stores and other "essential" businesses, substantially all of our retail tenants have closed their stores and many are seeking rent relief.
While our office buildings remain open, substantially all of our office tenants are working remotely.
We have temporarily closed the Hotel Pennsylvania.
We have postponed trade shows at theMART for the remainder of 2020.
Because certain of our development projects are deemed "non-essential," they have been temporarily paused due to New York State executive orders.
Closings on the sale of condominium units at 220 Central Park South have continued. During April 2020 we closed on the sale of four condominium units for net proceeds of $157,747,000. However, future closings may be temporarily delayed to the extent we cannot complete the buildout and obtain temporary certificates of occupancy on time.
We placed 1,803 employees on temporary furlough, including 1,293 employees of Building Maintenance Services LLC, a wholly owned subsidiary, which provides cleaning, security and engineering services primarily to our New York properties, 414 employees at the Hotel Pennsylvania and 96 corporate staff employees.
Effective April 1, 2020, our executive officers waived portions of their annual base salary for the remainder of 2020.
Effective April 1, 2020, each non-management member of our Board of Trustees agreed to forgo his or her $75,000 annual cash retainer for the remainder of 2020.
We have collected substantially all of the rent due for March 2020 and collected 90% of rent due from our office tenants for the month of April 2020 and 53% of the rent due from our retail tenants for the month of April 2020, or 83% in the aggregate. Many of our retail tenants and some of our office tenants have requested rent relief and/or rent deferral for April 2020 and beyond. While we believe that our tenants are required to pay rent under their leases, we have implemented and will continue to consider temporary rent deferrals on a case-by-case basis.
In light of the evolving health, social, economic, and business environment, governmental regulation or mandates, and business disruptions that have occurred and may continue to occur, the impact of COVID-19 on our financial condition and operating results remains highly uncertain but the impact could be material. The impact on us includes lower rental income and potentially lower occupancy levels at our properties which will result in less cash flow available for operating costs, to pay our indebtedness and for distribution to our shareholders. In addition, the value of our real estate assets may decline, which may result in non-cash impairment charges in future periods and that impact could be material.

Dispositions:
PREIT
On January 23, 2020, we sold all of our 6,250,000 common shares of PREIT, realizing net proceeds of $28,375,000. We recorded a $4,938,000 loss (mark-to-market decrease) for the three months ended March 31, 2020.
220 CPS
During the three months ended March 31, 2020, we closed on the sale of seven condominium units at 220 CPS for net proceeds aggregating $191,216,000 resulting in a financial statement net gain of $68,589,000 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, $8,678,000 of income tax expense was recognized on our consolidated statements of income. From inception to March 31, 2020, we closed on the sale of 72 units for aggregate net proceeds of $2,011,348,000.

3


Financings:
Unsecured Term Loan
On February 28, 2020, we increased our unsecured term loan balance to $800,000,000 (from $750,000,000) by exercising an accordion feature. Pursuant to an existing swap agreement, $750,000,000 of the loan bears interest at a fixed rate of 3.87% through October 2023, and the balance of $50,000,000 floats at a rate of LIBOR plus 1.00% (1.94% as of March 31, 2020). The entire $800,000,000 will float thereafter for the duration of the loan through February 2024.
Leasing Activity For The Three Months Ended March 31, 2020:
311,000 square feet of New York Office space (297,000 square feet at share) at an initial rent of $90.47 per square foot and a weighted average lease term of 6.6 years. The change in the GAAP and cash mark-to-market rent on the 275,000 square feet of second generation space were negative 3.3% and positive 0.8%, respectively. Tenant improvements and leasing commissions were $11.69 per square foot per annum, or 12.9% of initial rent.
15,000 square feet of New York Retail space (13,000 square feet at share) at an initial rent of $416.36 per square foot and a weighted average lease term of 9.7 years. The change in the GAAP and cash mark-to-market rent on the 9,000 square feet of second generation space were positive 126.6% and 104.6%, respectively. Tenant improvements and leasing commissions were $48.18 per square foot per annum, or 11.6% of initial rent.
231,000 square feet at theMART at an initial rent of $47.31 per square foot and a weighted average lease term of 10.3 years. The change in the GAAP and cash mark-to-market rent on the 228,000 square feet of second generation space were positive 2.6% and negative 1.2%, respectively. Tenant improvements and leasing commissions were $4.44 per square foot per annum, or 9.4% of initial rent.
6,000 square feet at 555 California Street (4,000 square feet at share) at an initial rent of $117.00 per square foot and a weighted average lease term of 1.4 years. The change in the GAAP and cash mark-to-market rent on the 4,000 square feet of second generation space were positive 44.5% and 29.7%, respectively. Tenant improvements and leasing commissions were $2.91 per square foot per annum, or 2.5% of initial rent.
Same Store Net Operating Income ("NOI") At Share:
The percentage (decrease) increase 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(3)
 
555 California Street
Same store NOI at share % (decrease) increase(1):
 
 
 
 
 
 
 
 
Three months ended March 31, 2020 compared to March 31, 2019
(2.5
)%
 
(1.9
)%
 
(13.3
)%
 
5.6
%
 
Three months ended March 31, 2020 compared to December 31, 2019
(8.2
)%
 
(9.0
)%
 
(8.2
)%
 
5.1
%
 
 
 
 
 
 
 
 
 
Same store NOI at share - cash basis % (decrease) increase(1):
 
 
 
 
 
 
 
 
Three months ended March 31, 2020 compared to March 31, 2019
(1.5
)%
 
(0.7
)%
 
(11.8
)%
 
3.7
%
 
Three months ended March 31, 2020 compared to December 31, 2019
(7.0
)%
 
(7.6
)%
 
(9.0
)%
 
5.8
%
____________________
(1)
See pages 11 through 14 for same store NOI at share and same store NOI at share - cash basis reconciliations.
(2)
As a result of the COVID-19 pandemic, we have temporarily closed the Hotel Pennsylvania.
 
 
 
Excluding the Hotel Pennsylvania, same store NOI at share % decrease:
 
 
 
Three months ended March 31, 2020 compared to March 31, 2019
(0.3
)%
 
 
Three months ended March 31, 2020 compared to December 31, 2019
(2.7
)%
 
 
 
 
 
 
Excluding the Hotel Pennsylvania, same store NOI at share - cash basis % increase (decrease):
 
 
 
Three months ended March 31, 2020 compared to March 31, 2019
0.9
 %
 
 
Three months ended March 31, 2020 compared to December 31, 2019
(1.0
)%
 
(3)
The decrease is primarily due to the cancellation of trade shows resulting from the COVID-19 pandemic.
 
 
Excluding trade shows, same store NOI at share % increase (decrease):
 
 
 
Three months ended March 31, 2020 compared to March 31, 2019
1.1
 %
 
 
Three months ended March 31, 2020 compared to December 31, 2019
(2.8
)%
 
 
 
 
 
 
Excluding trade shows, same store NOI at share - cash basis % increase (decrease):
 
 
 
Three months ended March 31, 2020 compared to March 31, 2019
2.0
 %
 
 
Three months ended March 31, 2020 compared to December 31, 2019
(4.0
)%
 

4


NOI At Share:
The elements of our New York and Other NOI at share for the three months ended March 31, 2020 and 2019 and the three months ended December 31, 2019 are summarized below.
(Amounts in thousands)
For the Three Months Ended
 
March 31,
 
December 31, 2019
 
2020
 
2019
 
New York:
 
 
 
 
 
Office(1)
$
183,205

 
$
183,540

 
$
183,925

Retail(1)
52,018

 
88,267

 
59,728

Residential
6,200

 
6,045

 
5,835

Alexander's Inc. ("Alexander's")
10,492

 
11,322

 
10,626

Hotel Pennsylvania(2)
(9,356
)
 
(5,816
)
 
6,170

Total New York
242,559

 
283,358

 
266,284

 
 
 
 
 
 
Other:
 
 
 
 
 
theMART
21,113

 
23,523

 
22,712

555 California Street
15,231

 
14,501

 
14,533

Other investments(3)
2,010

 
16,390

 
2,037

Total Other
38,354

 
54,414

 
39,282

 
 
 
 
 
 
NOI at share
$
280,913

 
$
337,772

 
$
305,566

____________________
(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.
(2)
The decrease in NOI at share is primarily due to seasonality of operations and the effects of the COVID-19 pandemic. The Hotel Pennsylvania was temporarily closed commencing on April 1, 2020 as result of the pandemic.
(3)
The three months ended March 31, 2019 includes our share of PREIT (accounted for as a marketable security from March 12, 2019 and sold on January 23, 2020) and Urban Edge Properties (sold on March 4, 2019).
NOI At Share - Cash Basis:
The elements of our New York and Other NOI at share - cash basis for the three months ended March 31, 2020 and 2019 and the three months ended December 31, 2019 are summarized below.
(Amounts in thousands)
For the Three Months Ended
 
March 31,
 
December 31, 2019
 
2020
 
2019
 
New York:
 
 
 
 
 
Office(1)
$
187,035

 
$
184,370

 
$
180,762

Retail(1)
49,041

 
80,936

 
54,357

Residential
5,859

 
5,771

 
5,763

Alexander's
11,094

 
11,527

 
10,773

Hotel Pennsylvania(2)
(9,364
)
 
(5,864
)
 
6,052

Total New York
243,665

 
276,740

 
257,707

 
 
 
 
 
 
Other:
 
 
 
 
 
theMART
22,705

 
24,912

 
24,646

555 California Street
15,435

 
14,745

 
14,491

Other investments(3)
2,184

 
16,194

 
2,132

Total Other
40,324

 
55,851

 
41,269

 
 
 
 
 
 
NOI at share - cash basis
$
283,989

 
$
332,591

 
$
298,976

____________________
(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.
(2)
The decrease in NOI at share - cash basis is primarily due to seasonality of operations and the effects of the COVID-19 pandemic. The Hotel Pennsylvania was temporarily closed commencing on April 1, 2020 as result of the pandemic.
(3)
The three months ended March 31, 2019 includes our share of PREIT (accounted for as a marketable security from March 12, 2019 and sold on January 23, 2020) and Urban Edge Properties (sold on March 4, 2019).

5


Penn District - Active Development/Redevelopment Summary as of March 31, 2020
(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) 
650,506

 
379,494

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

 
750,000

 
52,911

 
697,089

 
2024
 
8.4%
PENN1(4)
 
New York
 
2,546,000

 
325,000

 
95,919

 
229,081

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

 
7,360

 
92,640

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

 
806,696

 
1,398,304

(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 4.9 years.
(6)
Expected to be funded from 220 CPS net sales proceeds and existing cash.

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 Tuesday, May 5, 2020 at 10:00 a.m. Eastern Time (ET). The conference call can be accessed by dialing 877-690-9905 (domestic) or 720-405-3394 (international) and indicating to the operator the passcode 5868218. A telephonic replay of the conference call will be available from 2:00 p.m. ET on May 5, 2020 through June 5, 2020. To access the replay, please dial 855- 859-2056 and enter the passcode 5868218. 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 and "Item 1A. Risk Factors" in Part II of our Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2020. Such factors include, among others, risks associated with the timing of and costs associated with property improvements, financing commitments and general competitive factors. Currently, one of the most significant factors is the ongoing adverse effect of the COVID-19 pandemic on our business, financial condition, results of operations, cash flows, operating performance and the effect it will have on our tenants, the global, national, regional and local economies and financial markets and the real estate market in general. The extent of the impact of the COVID-19 pandemic will depend on future developments, including the duration of the pandemic, which are highly uncertain at this time but that impact could be material. Moreover, you are cautioned that the COVID-19 pandemic will heighten many of the risks identified in "Item 1A. Risk Factors" in Part I of our Annual Report on Form 10-K for the year ended December 31, 2019, as well as the risks set forth in "Item 1A. Risk Factors" in Part II of our Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2020.

6


VORNADO REALTY TRUST
CONSOLIDATED BALANCE SHEETS
(Amounts in thousands, except unit, share, and per share amounts)
As of
 
March 31, 2020
 
December 31, 2019
ASSETS
 
 
 
Real estate, at cost:
 
 
 
Land
$
2,589,800

 
$
2,591,261

Buildings and improvements
7,946,523

 
7,953,163

Development costs and construction in progress
1,532,828

 
1,490,614

Moynihan Train Hall development expenditures
972,199

 
914,960

Leasehold improvements and equipment
126,910

 
124,014

Total
13,168,260

 
13,074,012

Less accumulated depreciation and amortization
(3,049,609
)
 
(3,015,958
)
Real estate, net
10,118,651

 
10,058,054

Right-of-use assets
378,257

 
379,546

Cash and cash equivalents
1,586,738

 
1,515,012

Restricted cash
80,570

 
92,119

Marketable securities

 
33,313

Tenant and other receivables
115,795

 
95,733

Investments in partially owned entities
3,970,791

 
3,999,165

Real estate fund investments
45,129

 
222,649

220 Central Park South condominium units ready for sale
393,417

 
408,918

Receivable arising from the straight-lining of rents
731,807

 
742,206

Deferred leasing costs, net of accumulated amortization of $188,976 and $196,229
353,467

 
353,986

Identified intangible assets, net of accumulated amortization of $100,298 and $98,587
29,123

 
30,965

Other assets
405,914

 
355,347

 
$
18,209,659

 
$
18,287,013

LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND EQUITY
 
 
 
Mortgages payable, net
$
5,643,707

 
$
5,639,897

Senior unsecured notes, net
446,076

 
445,872

Unsecured term loan, net
795,974

 
745,840

Unsecured revolving credit facilities
1,075,000

 
575,000

Lease liabilities
497,531

 
498,254

Moynihan Train Hall obligation
972,199

 
914,960

Special dividend/distribution payable

 
398,292

Accounts payable and accrued expenses
407,598

 
440,049

Deferred revenue
54,992

 
59,429

Deferred compensation plan
90,888

 
103,773

Other liabilities
308,683

 
265,754

Total liabilities
10,292,648

 
10,087,120

Commitments and contingencies
 
 
 
Redeemable noncontrolling interests:
 
 
 
Class A units - 13,748,709 and 13,298,956 units outstanding
619,264

 
884,380

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

 
4,535

Total redeemable noncontrolling interests
623,799

 
888,915

Shareholders' equity:
 
 
 
Preferred shares of beneficial interest: no par value per share; authorized 110,000,000 shares; issued and outstanding 36,795,540 and 36,795,640 shares
891,211

 
891,214

Common shares of beneficial interest: $0.04 par value per share; authorized 250,000,000 shares; issued and outstanding 191,115,726 and 190,985,677 shares
7,624

 
7,618

Additional capital
8,112,523

 
7,827,697

Earnings less than distributions
(2,091,612
)
 
(1,954,266
)
Accumulated other comprehensive loss
(82,719
)
 
(40,233
)
Total shareholders' equity
6,837,027

 
6,732,030

Noncontrolling interests in consolidated subsidiaries
456,185

 
578,948

Total equity
7,293,212

 
7,310,978

 
$
18,209,659

 
$
18,287,013


7


VORNADO REALTY TRUST
OPERATING RESULTS

(Amounts in thousands, except per share amounts)
For the Three Months Ended
March 31,
 
2020
 
2019
Revenues
$
444,532

 
$
534,668

 
 
 
 
(Loss) income from continuing operations
$
(104,503
)
 
$
213,181

Loss from discontinued operations

 
(137
)
Net (loss) income
(104,503
)
 
213,044

Less net loss (income) attributable to noncontrolling interests in:
 
 
 
Consolidated subsidiaries
122,387

 
(6,820
)
Operating Partnership
(390
)
 
(12,202
)
Net income attributable to Vornado
17,494

 
194,022

Preferred share dividends
(12,531
)
 
(12,534
)
Net income attributable to common shareholders
$
4,963

 
$
181,488

 
 
 
 
Income per common share - basic:
 
 
 
Net income per common share
$
0.03

 
$
0.95

Weighted average shares outstanding
191,038

 
190,689

 
 
 
 
Income per common share - diluted:
 
 
 
Net income per common share
$
0.03

 
$
0.95

Weighted average shares outstanding
191,113

 
190,996

 
 
 
 
FFO attributable to common shareholders plus assumed conversions (non-GAAP)
$
130,360

 
$
247,684

Per diluted share (non-GAAP)
$
0.68

 
$
1.30

 
 
 
 
FFO attributable to common shareholders plus assumed conversions, as adjusted (non-GAAP)
$
137,567

 
$
149,939

Per diluted share (non-GAAP)
$
0.72

 
$
0.79

 
 
 
 
Weighted average shares used in determining FFO attributable to common shareholders plus assumed conversions per diluted share
191,143

 
190,996



8


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
March 31,
 
2020
 
2019
Reconciliation of our net income attributable to common shareholders to FFO attributable to common shareholders plus assumed conversions:
 
 
 
Net income attributable to common shareholders
$
4,963

 
$
181,488

Per diluted share
$
0.03

 
$
0.95

 
 
 
 
FFO adjustments:
 
 
 
Depreciation and amortization of real property
$
85,136

 
$
108,483

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

 
(62,395
)
Decrease (increase) in fair value of marketable securities:
 
 
 
PREIT (accounted for as a marketable security from March 12, 2019 and sold on January 23, 2020)
4,938

 
15,649

Lexington (sold on March 1, 2019)

 
(16,068
)
Other

 
(42
)
Proportionate share of adjustments to equity in net income of partially owned entities to arrive at FFO:
 
 
 
Depreciation and amortization of real property
40,423

 
24,990

Decrease (increase) in fair value of marketable securities
3,691

 
(12
)
 
134,188

 
70,605

Noncontrolling interests' share of above adjustments
(8,804
)
 
(4,424
)
FFO adjustments, net
$
125,384

 
$
66,181

 
 
 
 
FFO attributable to common shareholders
130,347

 
247,669

Convertible preferred share dividends
13

 
15

FFO attributable to common shareholders plus assumed conversions
$
130,360

 
$
247,684

Per diluted share
$
0.68

 
$
1.30

 
 
 
 
Reconciliation of weighted average shares outstanding:
 
 
 
Weighted average common shares outstanding
191,038

 
190,689

Effect of dilutive securities:
 
 
 
Employee stock options and restricted share awards
75

 
271

Convertible preferred shares
30

 
36

Denominator for FFO per diluted share
191,143

 
190,996


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 2 of this press release.

9


VORNADO REALTY TRUST
NON-GAAP RECONCILIATIONS - CONTINUED

Below is a reconciliation of net (loss) income to NOI at share and NOI at share - cash basis for the three months ended March 31, 2020 and 2019 and the three months ended December 31, 2019.
 
For the Three Months Ended
(Amounts in thousands)
March 31,
 
December 31, 2019
 
2020
 
2019
 
Net (loss) income
$
(104,503
)
 
$
213,044

 
$
160,676

Depreciation and amortization expense
92,793

 
116,709

 
92,926

General and administrative expense
52,834

 
58,020

 
39,791

Transaction related costs and other
71

 
149

 
3,223

Income from partially owned entities
(19,103
)
 
(7,320
)
 
(22,726
)
Loss from real estate fund investments
183,463

 
167

 
90,302

Interest and other investment loss (income), net
5,904

 
(5,045
)
 
(5,889
)
Interest and debt expense
58,842

 
102,463

 
59,683

Net gains on disposition of wholly owned and partially owned assets
(68,589
)
 
(220,294
)
 
(203,835
)
Income tax expense
12,813

 
29,743

 
22,897

Loss (income) from discontinued operations

 
137

 
(55
)
NOI from partially owned entities
81,881

 
67,402

 
85,990

NOI attributable to noncontrolling interests in consolidated subsidiaries
(15,493
)
 
(17,403
)
 
(17,417
)
NOI at share
280,913

 
337,772

 
305,566

Non cash adjustments for straight-line rents, amortization of acquired below-market leases, net and other
3,076

 
(5,181
)
 
(6,590
)
NOI at share - cash basis
$
283,989

 
$
332,591

 
$
298,976


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.

10


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 March 31, 2020 compared to March 31, 2019.
(Amounts in thousands)
Total
 
New York
 
theMART
 
555 California Street
 
Other
NOI at share for the three months ended March 31, 2020
$
280,913

 
$
242,559

 
$
21,113

 
$
15,231

 
$
2,010

Less NOI at share from:
 
 
 
 
 
 
 
 
 
 
Acquisitions
 
(369
)
 
(369
)
 

 

 

Development properties
 
(14,266
)
 
(14,266
)
 

 

 

Other non-same store (income) expense, net
 
(7,791
)
 
(5,520
)
 
(422
)
 
161

 
(2,010
)
Same store NOI at share for the three months ended March 31, 2020
$
258,487

 
$
222,404

 
$
20,691

 
$
15,392

 
$

 
 
 
 
 
 
 
 
 
 
NOI at share for the three months ended March 31, 2019
$
337,772

 
$
283,358

 
$
23,523

 
$
14,501

 
$
16,390

Less NOI at share from:
 
 
 
 
 
 
 
 
 
 
Change in ownership interests in properties contributed to Fifth Avenue and Times Square JV
 
(30,292
)
 
(30,292
)
 

 

 

Dispositions
 
(3,399
)
 
(3,399
)
 

 

 

Development properties
 
(20,593
)
 
(20,593
)
 

 

 

Other non-same store (income) expense, net
 
(18,378
)
 
(2,405
)
 
339

 
78

 
(16,390
)
Same store NOI at share for the three months ended March 31, 2019
$
265,110

 
$
226,669

 
$
23,862

 
$
14,579

 
$

 
 
 
 
 
 
 
 
 
 
(Decrease) increase in same store NOI at share for the three months ended March 31, 2020 compared to March 31, 2019
$
(6,623
)
 
$
(4,265
)
 
$
(3,171
)
 
$
813

 
$

 
 
 
 
 
 
 
 
 
 
 
% (decrease) increase in same store NOI at share
(2.5
)%
 
(1.9
)%
(1) 
(13.3
)%
(2) 
5.6
%
 
%
____________________
(1)
As a result of the COVID-19 pandemic, we have temporarily closed the Hotel Pennsylvania. Excluding the Hotel Pennsylvania, same store NOI decreased by 0.3%.
(2)
The decrease is primarily due to the cancellation of trade shows resulting from the COVID-19 pandemic. Excluding trade shows, same store NOI at share increased by 1.1%.

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.

11


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 March 31, 2020 compared to March 31, 2019.
(Amounts in thousands)
Total
 
New York
 
theMART
 
555 California Street
 
Other
NOI at share - cash basis for the three months ended March 31, 2020
$
283,989

 
$
243,665

 
$
22,705

 
$
15,435

 
$
2,184

 
Less NOI at share - cash basis from:
 
 
 
 
 
 
 
 
 
 
Acquisitions
(348
)
 
(348
)
 

 

 

 
Development properties
(18,117
)
 
(18,117
)
 

 

 

 
Other non-same store income, net
(12,607
)
 
(9,944
)
 
(422
)
 
(57
)
 
(2,184
)
Same store NOI at share - cash basis for the three months ended March 31, 2020
$
252,917

 
$
215,256

 
$
22,283

 
$
15,378

 
$

 
 
 
 
 
 
 
 
 
 
 
NOI at share - cash basis for the three months ended March 31, 2019
$
332,591

 
$
276,740

 
$
24,912

 
$
14,745

 
$
16,194

 
Less NOI at share - cash basis from:
 
 
 
 
 
 
 
 
 
 
Change in ownership interests in properties contributed to Fifth Avenue and Times Square JV
(27,722
)
 
(27,722
)
 

 

 

 
Dispositions
(3,581
)
 
(3,581
)
 

 

 

 
Development properties
(24,339
)
 
(24,339
)
 

 

 

 
Other non-same store (income) expense, net
(20,163
)
 
(4,386
)
 
339

 
78

 
(16,194
)
Same store NOI at share - cash basis for the three months ended March 31, 2019
$
256,786

 
$
216,712

 
$
25,251

 
$
14,823

 
$

 
 
 
 
 
 
 
 
 
 
(Decrease) increase in same store NOI at share - cash basis for the three months ended March 31, 2020 compared to March 31, 2019
$
(3,869
)
 
$
(1,456
)
 
$
(2,968
)
 
$
555

 
$

 
 
 
 
 
 
 
 
 
 
% (decrease) increase in same store NOI at share - cash basis
(1.5
)%
 
(0.7
)%
(1) 
(11.8
)%
(2) 
3.7
%
 
%
____________________
(1)
As a result of the COVID-19 pandemic, we have temporarily closed the Hotel Pennsylvania. Excluding the Hotel Pennsylvania, same store NOI at share - cash basis increased by 0.9%.
(2)
The decrease is primarily due to the cancellation of trade shows resulting from the COVID-19 pandemic. Excluding trade shows, same store NOI at share - cash basis increased by 2.0%.

 



12


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 March 31, 2020 compared to December 31, 2019.
(Amounts in thousands)
Total
 
New York
 
theMART
 
555 California Street
 
Other
NOI at share for the three months ended March 31, 2020
$
280,913

 
$
242,559

 
$
21,113

 
$
15,231

 
$
2,010

 
Less NOI at share from:
 
 
 
 
 
 
 
 
 
 
Acquisitions
(364
)
 
(364
)
 

 

 

 
Development properties
(14,271
)
 
(14,271
)
 

 

 

 
Other non-same store (income) expense, net
(7,477
)
 
(5,160
)
 
(422
)
 
115

 
(2,010
)
Same store NOI at share for the three months ended March 31, 2020
$
258,801

 
$
222,764

 
$
20,691

 
$
15,346

 
$

 
 
 
 
 
 
 
 
 
 
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
)
 

 

 

 
Development properties
(15,894
)
 
(15,894
)
 

 

 

 
Other non-same store (income) expense, net
(7,665
)
 
(5,530
)
 
(172
)
 
74

 
(2,037
)
Same store NOI at share for the three months ended December 31, 2019
$
281,889

 
$
244,742

 
$
22,540

 
$
14,607

 
$

 
 
 
 
 
 
 
 
 
 
(Decrease) increase in same store NOI at share for the three months ended March 31, 2020 compared to December 31, 2019
$
(23,088
)
 
$
(21,978
)
 
$
(1,849
)
 
$
739

 
$

 
 
 
 
 
 
 
 
 
 
 
% (decrease) increase in same store NOI at share
(8.2
)%
 
(9.0
)%
(1) 
(8.2
)%
(2) 
5.1
%
 
%
____________________
(1)
As a result of the COVID-19 pandemic, we have temporarily closed the Hotel Pennsylvania. Excluding the Hotel Pennsylvania, same store NOI at share decreased by 2.7%.
(2)
The decrease is primarily due to the cancellation of trade shows resulting from the COVID-19 pandemic. Excluding trade shows, same store NOI at share decreased by 2.8%.

13


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 March 31, 2020 compared to December 31, 2019.
(Amounts in thousands)
Total
 
New York
 
theMART
 
555 California Street
 
Other
NOI at share - cash basis for the three months ended March 31, 2020
$
283,989

 
$
243,665

 
$
22,705

 
$
15,435

 
$
2,184

 
Less NOI at share - cash basis from:
 
 
 
 
 
 
 
 
 
 
Acquisitions
(343
)
 
(343
)
 

 

 

 
Development properties
(18,122
)
 
(18,122
)
 

 

 

 
Other non-same store income, net
(12,293
)
 
(9,584
)
 
(422
)
 
(103
)
 
(2,184
)
Same store NOI at share - cash basis for the three months ended March 31, 2020
$
253,231

 
$
215,616

 
$
22,283

 
$
15,332

 
$

 
 
 
 
 
 
 
 
 
 
 
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
)
 

 

 

 
Development properties
(17,310
)
 
(17,310
)
 

 

 

 
Other non-same store income, net
(9,244
)
 
(6,940
)
 
(172
)
 

 
(2,132
)
Same store NOI at share - cash basis for the three months ended December 31, 2019
$
272,373

 
$
233,408

 
$
24,474

 
$
14,491

 
$

 
 
 
 
 
 
 
 
 
 
(Decrease) increase in same store NOI at share - cash basis for the three months ended March 31, 2020 compared to December 31, 2019
$
(19,142
)
 
$
(17,792
)
 
$
(2,191
)
 
$
841

 
$

 
 
 
 
 
 
 
 
 
 
% (decrease) increase in same store NOI at share - cash basis
(7.0
)%
 
(7.6
)%
(1) 
(9.0
)%
(2) 
5.8
%
 
%
____________________
(1)
As a result of the COVID-19 pandemic, we have temporarily closed the Hotel Pennsylvania. Excluding the Hotel Pennsylvania, same store NOI at share - cash basis decreased by 1.0%.
(2)
The decrease is primarily due to the cancellation of trade shows resulting from the COVID-19 pandemic. Excluding trade shows, same store NOI at share - cash basis decreased by 4.0%.

14
Exhibit
EXHIBIT 99.2


https://cdn.kscope.io/b2f14cb77327575929dd0b4f568858d3-supplementalcoversoptions09.jpg



 https://cdn.kscope.io/b2f14cb77327575929dd0b4f568858d3-vornadologoa19.jpg

INDEX
 
 
 
 
 
 
Page
 
 
COVID-19 PANDEMIC
 
 
 
 
BUSINESS DEVELOPMENTS
 
 
 
 
FINANCIAL INFORMATION
 
 
 
 
 
Financial Highlights
 
 
 
 
Net Income Attributable to Common Shareholders (Consolidated and by Segment)
-
 
 
Net Operating Income at Share (by Segment and by Subsegment)
-
 
 
Same Store NOI at Share and NOI at Share - Cash Basis and NOI at Share By Region
 
 
 
 
Consolidated Balance Sheets
 
 
 
 
LEASING ACTIVITY AND LEASE EXPIRATIONS
 
 
 
 
 
Leasing Activity
 
 
 
 
Leasing Expirations
-
 
 
TRAILING TWELVE MONTH PRO-FORMA CASH NOI AT SHARE
 
 

 
DEBT AND CAPITALIZATION
 
 
 
 
 
Capital Structure
 
 
 
 
Common Shares Data
 
 
 
 
Debt Analysis
 
 
 
 
Debt Maturities
 
 
 
 
UNCONSOLIDATED JOINT VENTURES
-
 
 
DEVELOPMENT ACTIVITY AND CAPITAL EXPENDITURES
 
 
 
 
 
Penn District Active Development/Redevelopment Summary
 
 
 
 
Other Development/Redevelopment Summary
 
 
 
 
Capital Expenditures, Tenant Improvements and Leasing Commissions
-
 
 
PROPERTY STATISTICS
 
 
 
 
 
Square Footage
 
 
 
 
Top 30 Tenants
 
 
 
 
Occupancy and Residential Statistics
 
 
 
 
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 and "Item 1A. Risk Factors" in Part II of our Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2020. Currently, one of the most significant factors is the ongoing adverse effect of the novel strain of coronavirus ("COVID-19") pandemic on our business, financial condition, results of operations, cash flows, operating performance and the effect it will have on our tenants, the global, national, regional and local economies and financial markets and the real estate market in general. The extent of the impact of the COVID-19 pandemic will depend on future developments, including the duration of the pandemic, which are highly uncertain at this time but that impact could be material. Moreover, you are cautioned that the COVID-19 pandemic will heighten many of the risks identified in "Item 1A. Risk Factors" in Part I of our Annual Report on Form 10-K for the year ended December 31, 2019, as well as the risks set forth in "Item 1A. Risk Factors" in Part II of our Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2020. 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/b2f14cb77327575929dd0b4f568858d3-vornadologoa19.jpg

COVID-19 PANDEMIC

In December 2019, a novel strain of coronavirus (“COVID-19”) was identified in Wuhan, China and by March 11, 2020, the World Health Organization had declared it a global pandemic. Many states in the U.S., including New York, New Jersey, Illinois and California have implemented stay-at-home orders for all "non-essential" business and activity in an aggressive effort to curb the spread of the virus. Consequently, the U.S. economy has suffered and there has been significant volatility in the financial markets. Many U.S. industries and businesses have been negatively affected and millions of people have filed for unemployment.
As our first priority, we are following strict protocols and taking all measures to protect our employees, tenants, and communities.
Our properties, which are concentrated in New York City, and in Chicago and San Francisco, have been adversely affected as a result of the COVID-19 pandemic and the preventive measures taken to curb the spread. Some of the effects on us include the following:
With the exception of grocery stores and other "essential" businesses, substantially all of our retail tenants have closed their stores and many are seeking rent relief.
While our office buildings remain open, substantially all of our office tenants are working remotely.
We have temporarily closed the Hotel Pennsylvania.
We have postponed trade shows at theMART for the remainder of 2020.
Because certain of our development projects are deemed "non-essential," they have been temporarily paused due to New York State executive orders.
Closings on the sale of condominium units at 220 Central Park South have continued. During April 2020 we closed on the sale of four condominium units for net proceeds of $157,747,000. However, future closings may be temporarily delayed to the extent we cannot complete the buildout and obtain temporary certificates of occupancy on time.
We placed 1,803 employees on temporary furlough, including 1,293 employees of Building Maintenance Services LLC, a wholly owned subsidiary, which provides cleaning, security and engineering services primarily to our New York properties, 414 employees at the Hotel Pennsylvania and 96 corporate staff employees.
Effective April 1, 2020, our executive officers waived portions of their annual base salary for the remainder of 2020.
Effective April 1, 2020, each non-management member of our Board of Trustees agreed to forgo his or her $75,000 annual cash retainer for the remainder of 2020.
We have collected substantially all of the rent due for March 2020 and collected 90% of rent due from our office tenants for the month of April 2020 and 53% of the rent due from our retail tenants for the month of April 2020, or 83% in the aggregate. Many of our retail tenants and some of our office tenants have requested rent relief and/or rent deferral for April 2020 and beyond. While we believe that our tenants are required to pay rent under their leases, we have implemented and will continue to consider temporary rent deferrals on a case-by-case basis.
In light of the evolving health, social, economic, and business environment, governmental regulation or mandates, and business disruptions that have occurred and may continue to occur, the impact of COVID-19 on our financial condition and operating results remains highly uncertain but the impact could be material. The impact on us includes lower rental income and potentially lower occupancy levels at our properties which will result in less cash flow available for operating costs, to pay our indebtedness and for distribution to our shareholders. In addition, the value of our real estate assets may decline, which may result in non-cash impairment charges in future periods and that impact could be material.
 


- 3 -


 https://cdn.kscope.io/b2f14cb77327575929dd0b4f568858d3-vornadologoa19.jpg

BUSINESS DEVELOPMENTS
 
Disposition Activity
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. We recorded a $4,938,000 loss (mark-to-market decrease) for the three months ended March 31, 2020.
220 Central Park South ("220 CPS")
During the three months ended March 31, 2020, we closed on the sale of seven condominium units at 220 CPS for net proceeds aggregating $191,216,000 resulting in a financial statement net gain of $68,589,000 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, $8,678,000 of income tax expense was recognized on our consolidated statements of income. From inception to March 31, 2020, we closed on the sale of 72 units for aggregate net proceeds of $2,011,348,000.
Financing Activity
Unsecured Term Loan
On February 28, 2020, we increased our unsecured term loan balance to $800,000,000 (from $750,000,000) by exercising an accordion feature. Pursuant to an existing swap agreement, $750,000,000 of the loan bears interest at a fixed rate of 3.87% through October 2023, and the balance of $50,000,000 floats at a rate of LIBOR plus 1.00% (1.94% as of March 31, 2020). The entire $800,000,000 will float thereafter for the duration of the loan through February 2024.
First Quarter Leasing Activity
311,000 square feet of New York Office space (297,000 square feet at share) at an initial rent of $90.47 per square foot and a weighted average lease term of 6.6 years. The change in the GAAP and cash mark-to-market rent on the 275,000 square feet of second generation space were negative 3.3% and positive 0.8%, respectively. Tenant improvements and leasing commissions were $11.69 per square foot per annum, or 12.9% of initial rent.
15,000 square feet of New York Retail space (13,000 square feet at share) at an initial rent of $416.36 per square foot and a weighted average lease term of 9.7 years. The change in the GAAP and cash mark-to-market rent on the 9,000 square feet of second generation space were positive 126.6% and 104.6%, respectively. Tenant improvements and leasing commissions were $48.18 per square foot per annum, or 11.6% of initial rent.
231,000 square feet at theMART at an initial rent of $47.31 per square foot and a weighted average lease term of 10.3 years. The change in the GAAP and cash mark-to-market rent on the 228,000 square feet of second generation space were positive 2.6% and negative 1.2%, respectively. Tenant improvements and leasing commissions were $4.44 per square foot per annum, or 9.4% of initial rent.
6,000 square feet at 555 California Street (4,000 square feet at share) at an initial rent of $117.00 per square foot and a weighted average lease term of 1.4 years. The change in the GAAP and cash mark-to-market rent on the 4,000 square feet of second generation space were positive 44.5% and 29.7%, respectively. Tenant improvements and leasing commissions were $2.91 per square foot per annum, or 2.5% of initial rent.


- 4 -


 https://cdn.kscope.io/b2f14cb77327575929dd0b4f568858d3-vornadologoa19.jpg

FINANCIAL HIGHLIGHTS (unaudited)
 
 
 
 
 
(Amounts in thousands, except per share amounts)
 
For the Three Months Ended
 
March 31,
 
December 31, 2019
 
2020
 
2019
 
Total revenues
$
444,532

 
$
534,668

 
$
460,968

 
 
 
 
 
 
Net income attributable to common shareholders
$
4,963

 
$
181,488

 
$
193,217

Per common share:
 
 
 
 
 
Basic
$
0.03

 
$
0.95

 
$
1.01

Diluted
$
0.03

 
$
0.95

 
$
1.01

 
 
 
 
 
 
Net income attributable to common shareholders, as adjusted (non-GAAP)
$
20,233

 
$
24,814

 
$
56,381

Per diluted share (non-GAAP)
$
0.11

 
$
0.13

 
$
0.29

 
 
 
 
 
 
FFO attributable to common shareholders plus assumed conversions, as adjusted (non-GAAP)
$
137,567

 
$
149,939

 
$
171,030

Per diluted share (non-GAAP)
$
0.72

 
$
0.79

 
$
0.89

 
 
 
 
 
 
FFO attributable to common shareholders plus assumed conversions (non-GAAP)
$
130,360

 
$
247,684

 
$
311,876

FFO - Operating Partnership Basis ("OP Basis") (non-GAAP)
$
138,819

 
$
263,697

 
$
332,029

Per diluted share (non-GAAP)
$
0.68

 
$
1.30

 
$
1.63

 
 
 
 
 
 
Dividends per common share:
 
 
 
 
 
Quarterly dividends
$
0.66

 
$
0.66

 
$
0.66

Special dividend

 

 
1.95

Total
$
0.66

 
$
0.66

 
$
2.61

 
 
 
 
 
 
FFO payout ratio (based on FFO attributable to common shareholders plus assumed conversions, as adjusted)
91.7
%
 
83.5
%
 
74.2
%
FAD payout ratio
106.5
%
 
85.7
%
 
93.0
%
 
 
 
 
 
 
Weighted average shares used in determining FFO attributable to common shareholders
   plus assumed conversions per diluted share (REIT basis)
191,143

 
190,996

 
191,140

Convertible units:
 
 
 
 
 
Class A
12,332

 
12,083

 
12,162

Equity awards - unit equivalents
71

 
265

 
189

Weighted average shares used in determining FFO attributable to Class A unitholders
   plus assumed conversions per diluted share (OP Basis)
203,546

 
203,344

 
203,491


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

- 5 -


 https://cdn.kscope.io/b2f14cb77327575929dd0b4f568858d3-vornadologoa19.jpg

CONSOLIDATED NET INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS (unaudited)
(Amounts in thousands)
 
 
For the Three Months Ended
 
 
March 31,
 
December 31,
2019
 
 
2020
 
2019
 
Variance
 
Property rentals(1)
 
$
355,060

 
$
428,380

 
$
(73,320
)
 
$
360,139

Tenant expense reimbursements(1)
 
52,173

 
66,112

 
(13,939
)
 
55,233

Amortization of acquired below-market leases, net
 
4,206

 
6,525

 
(2,319
)
 
4,269

Straight-lining of rents
 
(10,165
)
 
(1,140
)
 
(9,025
)
 
(1,233
)
Total rental revenues
 
401,274

 
499,877

 
(98,603
)
 
418,408

Fee and other income:
 
 
 
 
 
 
 
 
BMS cleaning fees
 
32,466

 
29,785

 
2,681

 
31,642

Management and leasing fees
 
2,867

 
2,237

 
630

 
3,479

Other income
 
7,925

 
2,769

 
5,156

 
7,439

Total revenues
 
444,532

 
534,668

 
(90,136
)
 
460,968

Operating expenses
 
(230,007
)
 
(246,895
)
 
16,888

 
(223,975
)
Depreciation and amortization
 
(92,793
)
 
(116,709
)
 
23,916

 
(92,926
)
General and administrative
 
(52,834
)
 
(58,020
)
 
5,186

 
(39,791
)
Benefit (expense) from deferred compensation plan liability
 
11,245

 
(5,433
)
 
16,678

 
(3,887
)
Transaction related costs and other
 
(71
)
 
(149
)
 
78

 
(3,223
)
Total expenses
 
(364,460
)
 
(427,206
)
 
62,746

 
(363,802
)
Income from partially owned entities(2)
 
19,103

 
7,320

 
11,783

 
22,726

Loss from real estate fund investments
 
(183,463
)
 
(167
)
 
(183,296
)
 
(90,302
)
Interest and other investment (loss) income, net
 
(5,904
)
 
5,045

 
(10,949
)
 
5,889

(Loss) income from deferred compensation plan assets
 
(11,245
)
 
5,433

 
(16,678
)
 
3,887

Interest and debt expense
 
(58,842
)
 
(102,463
)
 
43,621

 
(59,683
)
Net gains on disposition of wholly owned and partially owned assets
 
68,589

 
220,294

 
(151,705
)
 
203,835

(Loss) income before income taxes
 
(91,690
)
 
242,924

 
(334,614
)
 
183,518

Income tax expense
 
(12,813
)
 
(29,743
)
 
16,930

 
(22,897
)
(Loss) income from continuing operations
 
(104,503
)
 
213,181

 
(317,684
)
 
160,621

(Loss) income from discontinued operations
 

 
(137
)
 
137

 
55

Net (loss) income
 
(104,503
)
 
213,044

 
(317,547
)
 
160,676

Less net loss (income) attributable to noncontrolling interests in:
 
 
 
 
 
 
 
 
Consolidated subsidiaries
 
122,387

 
(6,820
)
 
129,207

 
58,592

Operating Partnership
 
(390
)
 
(12,202
)
 
11,812

 
(13,518
)
Net income attributable to Vornado
 
17,494

 
194,022

 
(176,528
)
 
205,750

Preferred share dividends
 
(12,531
)
 
(12,534
)
 
3

 
(12,533
)
Net income attributable to common shareholders
 
$
4,963

 
$
181,488

 
$
(176,525
)
 
$
193,217

 
 
 
 
 
 
 
 
 
Capitalized expenditures:
 
 
 
 
 
 
 
 
Development payroll
 
$
5,307

 
$
4,590

 
$
717

 
$
3,341

Interest and debt expense
 
12,055

 
23,325

 
(11,270
)
 
13,016

________________________________
(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.

- 6 -


 https://cdn.kscope.io/b2f14cb77327575929dd0b4f568858d3-vornadologoa19.jpg

NET INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS BY SEGMENT (unaudited)
(Amounts in thousands)
 
For the Three Months Ended March 31, 2020
 
Total
 
New York
 
Other
Property rentals(1)
$
355,060

 
$
277,688

 
$
77,372

Tenant expense reimbursements(1)
52,173

 
41,856

 
10,317

Amortization of acquired below-market leases, net
4,206

 
4,013

 
193

Straight-lining of rents
(10,165
)
 
(8,824
)
 
(1,341
)
Total rental revenues
401,274

 
314,733

 
86,541

Fee and other income:
 
 
 
 
 
BMS cleaning fees
32,466

 
34,429

 
(1,963
)
Management and leasing fees
2,867

 
2,874

 
(7
)
Other income
7,925

 
3,579

 
4,346

Total revenues
444,532

 
355,615

 
88,917

Operating expenses
(230,007
)
 
(183,031
)
 
(46,976
)
Depreciation and amortization
(92,793
)
 
(69,898
)
 
(22,895
)
General and administrative
(52,834
)
 
(17,457
)
 
(35,377
)
Benefit from deferred compensation plan liability
11,245

 

 
11,245

Transaction related costs and other
(71
)
 

 
(71
)
Total expenses
(364,460
)
 
(270,386
)
 
(94,074
)
Income from partially owned entities
19,103

 
17,304

 
1,799

Loss from real estate fund investments
(183,463
)
 

 
(183,463
)
Interest and other investment (loss) income, net
(5,904
)
 
151

 
(6,055
)
Loss from deferred compensation plan assets
(11,245
)
 

 
(11,245
)
Interest and debt expense
(58,842
)
 
(31,686
)
 
(27,156
)
Net gains on disposition of wholly owned and partially owned assets
68,589

 

 
68,589

(Loss) income before income taxes
(91,690
)
 
70,998

 
(162,688
)
Income tax expense
(12,813
)
 
(1,315
)
 
(11,498
)
Net (loss) income
(104,503
)
 
69,683

 
(174,186
)
Less net loss (income) attributable to noncontrolling interests in consolidated subsidiaries
122,387

 
(2,457
)
 
124,844

Net income attributable to Vornado Realty L.P.
17,884

 
$
67,226

 
$
(49,342
)
Less net income attributable to noncontrolling interests in the Operating Partnership
(349
)
 
 
 
 
Preferred unit distributions
(12,572
)
 
 
 
 
Net income attributable to common shareholders
$
4,963

 
 
 
 
For the three months ended March 31, 2019:
 
 
 
 
 
Net income attributable to Vornado Realty L.P.
$
206,224

 
$
82,790

 
$
123,434

Net income attributable to common shareholders
$
181,488

 
 
 
 
________________________________
(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.


- 7 -


 https://cdn.kscope.io/b2f14cb77327575929dd0b4f568858d3-vornadologoa19.jpg

NET OPERATING INCOME AT SHARE BY SEGMENT (unaudited)
(Amounts in thousands)
 
 
 
 
 
 
 
 
 
 
 
For the Three Months Ended March 31, 2020
 
Total
 
New York(1)
 
Other
Total revenues
$
444,532

 
$
355,615

 
$
88,917

Operating expenses
(230,007
)
 
(183,031
)
 
(46,976
)
NOI - consolidated
214,525

 
172,584

 
41,941

Deduct: NOI attributable to noncontrolling interests in consolidated subsidiaries
(15,493
)
 
(8,433
)
 
(7,060
)
Add: NOI from partially owned entities
81,881

 
78,408

 
3,473

NOI at share
280,913

 
242,559

 
38,354

Non-cash adjustments for straight-line rents, amortization of acquired below-market leases, net, and other
3,076

 
1,106

 
1,970

NOI at share - cash basis
$
283,989

 
$
243,665

 
$
40,324


 
For the Three Months Ended March 31, 2019
 
Total
 
New York
 
Other
Total revenues
$
534,668

 
$
443,285

 
$
91,383

Operating expenses
(246,895
)
 
(198,095
)
 
(48,800
)
NOI - consolidated
287,773

 
245,190

 
42,583

Deduct: NOI attributable to noncontrolling interests in consolidated subsidiaries
(17,403
)
 
(11,407
)
 
(5,996
)
Add: NOI from partially owned entities
67,402

 
49,575

 
17,827

NOI at share
337,772

 
283,358

 
54,414

Non-cash adjustments for straight-line rents, amortization of acquired below-market leases, net, and other
(5,181
)
 
(6,618
)
 
1,437

NOI at share - cash basis
$
332,591

 
$
276,740

 
$
55,851


 
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

________________________________
(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.


- 8 -


 https://cdn.kscope.io/b2f14cb77327575929dd0b4f568858d3-vornadologoa19.jpg

NET OPERATING INCOME AT SHARE BY SUBSEGMENT (unaudited)
(Amounts in thousands)
 
 
 
 
 
 
 
 
 
 
 
For the Three Months Ended
 
March 31,
 
December 31,
2019
 
2020
 
2019
 
NOI at share:
 
 
 
 
 
New York:
 
 
 
 
 
Office(1)
$
183,205

 
$
183,540

 
$
183,925

Retail(1)
52,018

 
88,267

 
59,728

Residential
6,200

 
6,045

 
5,835

Alexander's Inc ("Alexander's")
10,492

 
11,322

 
10,626

Hotel Pennsylvania(2)
(9,356
)
 
(5,816
)
 
6,170

Total New York
242,559

 
283,358

 
266,284

 
 
 
 
 
 
Other:
 
 
 
 
 
theMART
21,113

 
23,523

 
22,712

555 California Street
15,231

 
14,501

 
14,533

Other investments(3)
2,010

 
16,390

 
2,037

Total Other
38,354

 
54,414

 
39,282

 
 
 
 
 
 
NOI at share
$
280,913

 
$
337,772

 
$
305,566

NOI at share - cash basis:
 
 
 
 
 
New York:
 
 
 
 
 
Office(1)
$
187,035

 
$
184,370

 
$
180,762

Retail(1)
49,041

 
80,936

 
54,357

Residential
5,859

 
5,771

 
5,763

Alexander's
11,094

 
11,527

 
10,773

Hotel Pennsylvania(2)
(9,364
)
 
(5,864
)
 
6,052

Total New York
243,665

 
276,740

 
257,707

 
 
 
 
 
 
Other:
 
 
 
 
 
theMART
22,705

 
24,912

 
24,646

555 California Street
15,435

 
14,745

 
14,491

Other investments(3)
2,184

 
16,194

 
2,132

Total Other
40,324

 
55,851

 
41,269

 
 
 
 
 
 
NOI at share - cash basis
$
283,989

 
$
332,591

 
$
298,976

________________________________
(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.
(2)
The decreases in NOI at share and NOI at share - cash basis were primarily due to seasonality of operations and the effects of the COVID-19 pandemic. The Hotel Pennsylvania was temporarily closed commencing on April 1, 2020 as result of the pandemic.
(3)
The three months ended March 31, 2019 includes our share of PREIT (accounted for as a marketable security from March 12, 2019 and sold on January 23, 2020) and Urban Edge Properties (sold on March 4, 2019).


- 9 -


 https://cdn.kscope.io/b2f14cb77327575929dd0b4f568858d3-vornadologoa19.jpg

SAME STORE NOI AT SHARE AND NOI AT SHARE - CASH BASIS (NON-GAAP) (unaudited)
 
 
Total
 
New York(2)
 
theMART(3)
 
555 California Street
Same store NOI at share % (decrease) increase(1):
 
 
 
 
 
 
 
 
Three months ended March 31, 2020 compared to March 31, 2019
(2.5
)%
 
(1.9
)%
 
(13.3
)%
 
5.6
%
 
Three months ended March 31, 2020 compared to December 31, 2019
(8.2
)%
 
(9.0
)%
 
(8.2
)%
 
5.1
%
 
 
 
 
 
 
 
 
 
Same store NOI at share - cash basis % (decrease) increase(1):
 
 
 
 
 
 
 
 
Three months ended March 31, 2020 compared to March 31, 2019
(1.5
)%
 
(0.7
)%
 
(11.8
)%
 
3.7
%
 
Three months ended March 31, 2020 compared to December 31, 2019
(7.0
)%
 
(7.6
)%
 
(9.0
)%
 
5.8
%
________________________________
(1)
See pages viii through xi in the Appendix for same store NOI at share and same store NOI at share - cash basis reconciliations.
 
 
 
 
 
(2)
As a result of the COVID-19 pandemic, we have temporarily closed the Hotel Pennsylvania.
 
 

Excluding the Hotel Pennsylvania, same store NOI at share % decrease:
 
 
 
Three months ended March 31, 2020 compared to March 31, 2019
(0.3
)%
 
 
Three months ended March 31, 2020 compared to December 31, 2019
(2.7
)%
 
 
 
 
 
 
Excluding the Hotel Pennsylvania, same store NOI at share - cash basis % increase (decrease):
 
 
 
Three months ended March 31, 2020 compared to March 31, 2019
0.9
 %
 
 
Three months ended March 31, 2020 compared to December 31, 2019
(1.0
)%
 
(3)
The decrease is primarily due to the cancellation of trade shows resulting from the COVID-19 pandemic.
 
 
 
Excluding trade shows, same store NOI at share % increase (decrease):
 
 
 
Three months ended March 31, 2020 compared to March 31, 2019
1.1
 %
 
 
Three months ended March 31, 2020 compared to December 31, 2019
(2.8
)%
 
 
 
 
 
 
Excluding trade shows, same store NOI at share - cash basis % increase (decrease):
 
 
 
Three months ended March 31, 2020 compared to March 31, 2019
2.0
 %
 
 
Three months ended March 31, 2020 compared to December 31, 2019
(4.0
)%
 
NOI AT SHARE BY REGION (unaudited)
 
For the Three Months Ended March 31,
 
2020
 
2019
Region:
 
 
 
New York City metropolitan area
87
%
 
88
%
Chicago, IL
8
%
 
7
%
San Francisco, CA
5
%
 
5
%
 
100
%
 
100
%


- 10 -


 https://cdn.kscope.io/b2f14cb77327575929dd0b4f568858d3-vornadologoa19.jpg

CONSOLIDATED BALANCE SHEETS (unaudited)
(Amounts in thousands)
 
As of
 
Increase
(Decrease)
 
March 31, 2020
 
December 31, 2019
 
ASSETS
 
 
 
 
 
Real estate, at cost:
 
 
 
 
 
Land
$
2,589,800

 
$
2,591,261

 
$
(1,461
)
Buildings and improvements
7,946,523

 
7,953,163

 
(6,640
)
Development costs and construction in progress
1,532,828

 
1,490,614

 
42,214

Moynihan Train Hall development expenditures
972,199

 
914,960

 
57,239

Leasehold improvements and equipment
126,910

 
124,014

 
2,896

Total
13,168,260

 
13,074,012

 
94,248

Less accumulated depreciation and amortization
(3,049,609
)
 
(3,015,958
)
 
(33,651
)
Real estate, net
10,118,651

 
10,058,054

 
60,597

Right-of-use assets
378,257

 
379,546

 
(1,289
)
Cash and cash equivalents
1,586,738

 
1,515,012

 
71,726

Restricted cash
80,570

 
92,119

 
(11,549
)
Marketable securities

 
33,313

 
(33,313
)
Tenant and other receivables
115,795

 
95,733

 
20,062

Investments in partially owned entities
3,970,791

 
3,999,165

 
(28,374
)
Real estate fund investments
45,129

 
222,649

 
(177,520
)
220 Central Park South condominium units ready for sale
393,417

 
408,918

 
(15,501
)
Receivable arising from the straight-lining of rents
731,807

 
742,206

 
(10,399
)
Deferred leasing costs, net
353,467

 
353,986

 
(519
)
Identified intangible assets, net
29,123

 
30,965

 
(1,842
)
Other assets
405,914

 
355,347

 
50,567

Total Assets
$
18,209,659

 
$
18,287,013

 
$
(77,354
)
LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND EQUITY
 
 
 
 
 
Liabilities:
 
 
 
 
 
Mortgages payable, net
$
5,643,707

 
$
5,639,897

 
$
3,810

Senior unsecured notes, net
446,076

 
445,872

 
204

Unsecured term loan, net
795,974

 
745,840

 
50,134

Unsecured revolving credit facilities
1,075,000

 
575,000

 
500,000

Lease liabilities
497,531

 
498,254

 
(723
)
Moynihan Train Hall obligation
972,199

 
914,960

 
57,239

Special dividend/distribution payable

 
398,292

 
(398,292
)
Accounts payable and accrued expenses
407,598

 
440,049

 
(32,451
)
Deferred revenue
54,992

 
59,429

 
(4,437
)
Deferred compensation plan
90,888

 
103,773

 
(12,885
)
Other liabilities
308,683

 
265,754

 
42,929

Total liabilities
10,292,648

 
10,087,120

 
205,528

Redeemable noncontrolling interests
623,799

 
888,915

 
(265,116
)
Shareholders' equity
6,837,027

 
6,732,030

 
104,997

Noncontrolling interests in consolidated subsidiaries
456,185

 
578,948

 
(122,763
)
Total liabilities, redeemable noncontrolling interests and equity
$
18,209,659

 
$
18,287,013

 
$
(77,354
)

- 11 -


 https://cdn.kscope.io/b2f14cb77327575929dd0b4f568858d3-vornadologoa19.jpg

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 March 31, 2020
 
 
 
 
 
 
 
 
Total square feet leased
 
311

 
15

 
231

 
6

Our share of square feet leased:
 
297

 
13

 
231

 
4

Initial rent(1)
 
$
90.47

 
$
416.36

 
$
47.31

 
$
117.00

Weighted average lease term (years)
 
6.6

 
9.7

 
10.3

 
1.4

Second generation relet space:
 
 
 
 
 
 
 
 
Square feet
 
275

 
9

 
228

 
4

GAAP basis:
 
 
 
 
 
 
 
 
Straight-line rent(2)
 
$
88.96

 
$
476.94

 
$
44.52

 
$
118.03

Prior straight-line rent
 
$
91.98

 
$
210.48

 
$
43.41

 
$
81.70

Percentage (decrease) increase
 
(3.3
)%
 
126.6
%
 
2.6
 %
 
44.5
%
Cash basis (non-GAAP):
 
 
 
 
 
 
 
 
Initial rent(1)
 
$
89.22

 
$
469.99

 
$
47.05

 
$
117.00

Prior escalated rent
 
$
88.55

 
$
229.66

 
$
47.62

 
$
90.24

Percentage increase (decrease)
 
0.8
 %
 
104.6
%
 
(1.2
)%
 
29.7
%
Tenant improvements and leasing commissions:
 
 
 
 
 
 
 
 
Per square foot
 
$
77.14

 
$
467.30

 
$
45.72

 
$
4.08

Per square foot per annum
 
$
11.69

 
$
48.18

 
$
4.44

 
$
2.91

Percentage of initial rent
 
12.9
 %
 
11.6
%
 
9.4
 %
 
2.5
%
________________________________
(1)
Represents the cash basis weighted average starting rent per square foot, which is generally indicative of market rents. Most leases include free rent and periodic step-ups in rent which are not included in the initial cash basis rent per square foot but are included in the GAAP basis straight-line rent per square foot.
(2)
Represents the GAAP basis weighted average rent per square foot that is recognized over the term of the respective leases and includes the effect of free rent and periodic step-ups in rent.



- 12 -


 https://cdn.kscope.io/b2f14cb77327575929dd0b4f568858d3-vornadologoa19.jpg

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
 
47,000

 
$
2,913,000

 
$
61.98

 
0.3
%
 
 
 
 
 
 
 
 
 
 
 
Second Quarter 2020
 
135,000

 
10,382,000

 
76.90

 
0.9
%
 
Third Quarter 2020
 
186,000

 
16,150,000

 
86.83

 
1.4
%
 
Fourth Quarter 2020
 
142,000

 
9,333,000

 
65.73

 
0.8
%
 
Total 2020
 
463,000

 
35,865,000

 
77.46

 
3.1
%
 
First Quarter 2021
 
379,000

 
25,803,000

 
68.08

 
2.3
%
 
Remaining 2021
 
788,000

 
59,112,000

 
75.02

 
5.3
%
 
2022
 
661,000

 
43,876,000

 
66.38

 
3.9
%
 
2023
 
1,888,000

 
165,105,000

 
87.45

 
14.8
%
 
2024
 
1,446,000

 
120,995,000

 
83.68

 
10.8
%
 
2025
 
837,000

(2) 
66,163,000

 
79.05

 
5.9
%
 
2026
 
1,212,000

 
93,632,000

 
77.25

 
8.4
%
 
2027
 
1,103,000

 
81,091,000

 
73.52

 
7.3
%
 
2028
 
886,000

 
61,871,000

 
69.83

 
5.5
%
 
2029
 
679,000

 
55,427,000

 
81.63

 
5.0
%
 
2030
 
785,000

 
55,661,000

 
70.91

 
5.0
%
 
Thereafter
 
3,666,000

 
249,819,000

 
68.14

 
22.4
%
 
 
 
 
 
 
 
 
 
 
Retail:
Month to Month
 
27,000

 
$
3,250,000

 
$
120.37

 
1.1
%
 
 
 
 
 
 
 
 
 
 
 
Second Quarter 2020
 
5,000

 
1,551,000

 
310.20

 
0.5
%
 
Third Quarter 2020
 
7,000

 
2,351,000

 
335.86

 
0.8
%
 
Fourth Quarter 2020
 
30,000

 
7,503,000

 
250.10

 
2.5
%
 
Total 2020
 
42,000

 
11,405,000

 
271.57

 
3.8
%
 
First Quarter 2021
 
33,000

 
8,692,000

 
263.39

 
2.8
%
 
Remaining 2021
 
76,000

 
7,190,000

 
94.61

 
2.3
%
 
2022
 
25,000

 
6,831,000

 
273.24

 
2.2
%
 
2023
 
141,000

 
32,239,000

 
228.65

 
10.5
%
 
2024
 
205,000

 
47,000,000

 
229.27

 
15.3
%
 
2025
 
37,000

 
12,234,000

 
330.65

 
4.0
%
 
2026
 
71,000

 
26,269,000

 
369.99

 
8.6
%
 
2027
 
30,000

 
20,729,000

 
690.97

 
6.8
%
 
2028
 
25,000

 
12,763,000

 
510.52

 
4.2
%
 
2029
 
201,000

 
39,714,000

 
197.58

 
13.0
%
 
2030
 
161,000

 
21,265,000

 
132.08

 
6.9
%
 
Thereafter
 
296,000

 
56,640,000

 
191.35

 
18.5
%
________________________________
(1)
Excludes storage, vacancy and other.
(2)
Assumes U.S. Post Office exercises lease renewal options at 909 Third Avenue for which the annual escalated rent is $13.51 per square foot on their 492,000 square feet space.


- 13 -


 https://cdn.kscope.io/b2f14cb77327575929dd0b4f568858d3-vornadologoa19.jpg

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
 
17,000

 
$
1,103,000

 
$
64.88

 
0.7
%
 
 
 
 
 
 
 
 
 
 
 
Second Quarter 2020
 
26,000

 
1,462,000

 
56.23

 
0.9
%
 
Third Quarter 2020
 
25,000

 
1,541,000

 
61.64

 
0.9
%
 
Fourth Quarter 2020
 
49,000

 
2,524,000

 
51.51

 
1.5
%
 
Total 2020
 
100,000

 
5,527,000

 
55.27

 
3.3
%
 
First Quarter 2021
 
61,000

 
2,731,000

 
44.77

 
1.7
%
 
Remaining 2021
 
251,000

 
12,431,000

 
49.53

 
7.6
%
 
2022
 
466,000

 
23,299,000

 
50.00

 
14.3
%
 
2023
 
296,000

 
15,313,000

 
51.73

 
9.4
%
 
2024
 
337,000

 
16,913,000

 
50.19

 
10.4
%
 
2025
 
328,000

 
17,578,000

 
53.59

 
10.8
%
 
2026
 
295,000

 
14,549,000

 
49.32

 
8.9
%
 
2027
 
147,000

 
7,287,000

 
49.57

 
4.5
%
 
2028
 
642,000

 
28,336,000

 
44.14

 
17.4
%
 
2029
 
73,000

 
3,466,000

 
47.48

 
2.1
%
 
2030
 
5,000

 
313,000

 
62.60

 
0.2
%
 
Thereafter
 
317,000

 
14,267,000

 
45.01

 
8.7
%
________________________________
(1)    Excludes storage, vacancy and other.




- 14 -


 https://cdn.kscope.io/b2f14cb77327575929dd0b4f568858d3-vornadologoa19.jpg

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
%
 
 
 
 
 
 
 
 
 
 
 
Second Quarter 2020
 
5,000

 
499,000

 
99.80

 
0.5
%
 
Third Quarter 2020
 
3,000

 
273,000

 
91.00

 
0.3
%
 
Fourth Quarter 2020
 
7,000

 
669,000

 
95.57

 
0.7
%
 
Total 2020
 
15,000

 
1,441,000

 
96.13

 
1.4
%
 
First Quarter 2021
 
1,000

 
95,000

 
95.00

 
0.1
%
 
Remaining 2021
 
79,000

 
6,061,000

 
76.72

 
6.0
%
 
2022
 
36,000

 
2,965,000

 
82.36

 
2.9
%
 
2023
 
133,000

 
10,018,000

 
75.32

 
9.8
%
 
2024
 
51,000

 
4,949,000

 
97.04

 
4.8
%
 
2025
 
432,000

 
33,857,000

 
78.37

 
33.3
%
 
2026
 
140,000

 
11,126,000

 
79.47

 
10.9
%
 
2027
 
69,000

 
6,061,000

 
87.84

 
6.0
%
 
2028
 
20,000

 
1,545,000

 
77.25

 
1.5
%
 
2029
 
74,000

 
7,029,000

 
94.99

 
6.9
%
 
2030
 
110,000

 
10,443,000

 
94.94

 
10.3
%
 
Thereafter
 
84,000

 
6,227,000

 
74.13

 
6.1
%
________________________________
(1)    Excludes storage, vacancy and other.




- 15 -


 https://cdn.kscope.io/b2f14cb77327575929dd0b4f568858d3-vornadologoa19.jpg

TRAILING TWELVE MONTH PRO-FORMA CASH NET OPERATING INCOME AT SHARE (unaudited)
(Amounts in thousands)
 
 
For the Trailing Twelve Months Ended March 31, 2020
 
For the Trailing
Twelve Months Ended
December 31, 2019
 
 
 
Adjustment for Transfer of 45.4% Interest in Fifth Avenue and Times Square JV(1)
 
 
 
 
 
 
 
NOI at Share - Cash Basis
 
 
Adjustments
 
Pro Forma NOI at Share -
Cash Basis
 
Pro Forma NOI at Share - Cash Basis
Office:
 
 
 
 
 
 
 
 
 
New York
$
721,399

 
$
(968
)
 
$
(31,195
)
(2) 
$
689,236

 
$
678,184

theMART
105,923

 

 

 
105,923

 
108,130

555 California Street
60,846

 

 

 
60,846

 
60,156

Total Office
888,168

 
(968
)
 
(31,195
)
 
856,005

 
846,470

New York - Retail
235,760

 
(4,171
)
 
(15,483
)
(3) 
216,106

 
219,669

New York - Residential
21,982

 

 

 
21,982

 
21,894

 
$
1,145,910

 
$
(5,139
)
 
$
(46,678
)
 
$
1,094,093

 
$
1,088,033

________________________________
(1)
Adjusts April 1, 2019 through April 18, 2019 to reflect new ownership interests in the properties contributed to Fifth Avenue and Times Square JV.
(2)
Adjustment to deduct $27,969 of BMS NOI and $3,226 of 330 Madison Avenue NOI (sold on July 11, 2019).
(3)
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.

- 16 -


 https://cdn.kscope.io/b2f14cb77327575929dd0b4f568858d3-vornadologoa19.jpg

CAPITAL STRUCTURE (unaudited)
(Amounts in thousands, except per share and per unit amounts)
 
 
 
 
 
 
 
As of
March 31, 2020
 
 
Debt (contractual balances) (non-GAAP):
 
 
 
 
 
 
 
Consolidated debt (1):
 
 
 
 
 
 
 
Mortgages payable
 
 
 
 
$
5,670,928

 
 
Senior unsecured notes
 
 
 
 
450,000

 
 
$800 Million unsecured term loan
 
 
 
 
800,000

 
 
$2.75 Billion unsecured revolving credit facilities
 
 
 
 
1,075,000

 
 
 
 
 
 
 
7,995,928

 
 
Pro rata share of debt of non-consolidated entities(2)
 
 
 
 
2,851,605

 
 
Less: Noncontrolling interests' share of consolidated debt
        (primarily 1290 Avenue of the Americas and 555 California Street)
 
 
 
 
(484,298
)
 
 
 
 
 
 
 
10,363,235

 
(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
 
March 31, 2020 Common Share Price
 
 
 
 
Equity:
 
 
 
 
 
 
 
Common shares
191,116

 
$
36.21

 
6,920,310

 
 
Class A units
12,387

 
36.21

 
448,533

 
 
Convertible share equivalents:
 
 
 
 
 
 
 
Equity awards - unit equivalents
1,362

 
36.21

 
49,318

 
 
D-13 preferred units
1,289

 
36.21

 
46,675

 
 
G1-G4 units
96

 
36.21

 
3,476

 
 
Series A preferred shares
30

 
36.21

 
1,086

 
 
 
 
 
 

 
7,469,398

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

 
$
18,756,668

 
 
________________________________
(1)
See reconciliation of consolidated debt, net (GAAP) to contractual debt (non-GAAP) on page xii in the Appendix.
(2)
Our pro rata share of debt of non-consolidated entities is net of our $16,200 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.

- 17 -


 https://cdn.kscope.io/b2f14cb77327575929dd0b4f568858d3-vornadologoa19.jpg

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):
 
 
 
 
 
 
 
 
 
 
 
 
 
 
First Quarter 2020
 
Fourth Quarter 2019
 
Third Quarter
2019
 
Second Quarter
2019
High price
$
68.68

 
$
67.95

 
$
66.72

 
$
70.45

Low price
$
27.64

 
$
61.78

 
$
58.60

 
$
62.87

Closing price - end of quarter
$
36.21

 
$
66.50

 
$
63.67

 
$
64.10

 
 
 
 
 
 
 
 
 
 
 
 
Annualized quarterly dividend per share
$
2.64

 
$
2.64

 
$
2.64

 
$
2.64

Special dividend
 

 
 
1.95

(1) 
 

 
 

Total
$
2.64

 
$
4.59

 
$
2.64

 
$
2.64

 
 
 
 
 
 
 
 
 
 
 
 
Annualized dividend yield - on closing price:
 
 
 
 
 
 
 
 
 
 
 
Quarterly dividends
 
7.3
%
 
 
4.0
%
 
 
4.1
%
 
 
4.1
%
Total
 
7.3
%
 
 
6.9
%
 
 
4.1
%
 
 
4.1
%
 
 
 
 
 
 
 
 
 
 
 
 
Outstanding shares, Class A units and convertible preferred units as converted (in thousands)
 
206,280

 
 
205,076

 
 
205,024

 
 
205,011

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

 
$
13.6 Billion

 
$
13.1 Billion

 
$
13.1 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.



- 18 -


 https://cdn.kscope.io/b2f14cb77327575929dd0b4f568858d3-vornadologoa19.jpg

DEBT ANALYSIS (unaudited)
 
 
 
 
 
 
 
 
 
 
 
(Amounts in thousands)
 
 
 
 
 
 
 
 
 
 
 
 
As of March 31, 2020
 
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)
$
7,995,928

 
3.22%
 
$
2,196,562

 
2.32%
 
$
5,799,366

 
3.57%
Pro rata share of debt of non-consolidated entities(2)
2,851,605

 
3.29%
 
1,490,518

 
2.70%
 
1,361,087

 
3.93%
Total
10,847,533

 
3.24%
 
3,687,080

 
2.47%
 
7,160,453

 
3.63%
Less: Noncontrolling interests' share of consolidated debt (primarily 1290 Avenue of the Americas and 555 California Street)
(484,298
)
 
 
 
(35,433
)
 
 
 
(448,865
)
 
 
Company's pro rata share of total debt
$
10,363,235

 
3.21%
 
$
3,651,647

 
2.47%
 
$
6,711,588

 
3.61%
Debt Covenant Ratios:(3)
Senior Unsecured Notes due 2025
 
Unsecured Revolving Credit Facilities
and Unsecured Term Loan
 
 
 
Required
 
Actual
 
Required
 
Actual
Total outstanding debt/total assets(4)
Less than 65%
 
45%
 
Less than 60%
 
32%
Secured debt/total assets
Less than 50%
 
31%
 
Less than 50%
 
24%
Interest coverage ratio (annualized combined EBITDA to annualized interest expense)
Greater than 1.50
 
2.42
 
 
 
N/A
Fixed charge coverage
 
 
N/A
 
Greater than 1.40
 
2.73
Unencumbered assets/unsecured debt
Greater than 150%
 
408%
 
 
 
N/A
Unsecured debt/cap value of unencumbered assets
 
 
N/A
 
Less than 60%
 
15%
Unencumbered coverage ratio
 
 
N/A
 
Greater than 1.50
 
6.64
Unencumbered EBITDA (non-GAAP):(4)
Q1 2020
 
 
Annualized
 
New York
$
207,880

 
Other
20,480

 
Total
$
228,360

 
________________________________
(1)
See reconciliation of consolidated debt, net (GAAP) to contractual debt (non-GAAP) on page xii in the Appendix.
(2)
Our pro rata share of debt of non-consolidated entities is net of our $16,200 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.
(3)
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.
(4)
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.




- 19 -


 https://cdn.kscope.io/b2f14cb77327575929dd0b4f568858d3-vornadologoa19.jpg

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%
 

 
53,152

 

 

 

 

 
53,152

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%
 

 
546,214

 

 

 

 

 
546,214

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
 
—%
 

 

 

 

 

 

 

$800 Million unsecured term loan
 
02/24
 
 
 
3.75%
(3)

 

 

 

 
800,000

 

 
800,000

435 Seventh Avenue - retail
 
02/24
 
L+130
 
2.68%
 

 

 

 

 
95,696

 

 
95,696

$1.5 Billion unsecured revolving credit facility
 
03/24
 
L+90
 
1.78%
 

 

 

 

 
1,075,000

 

 
1,075,000

150 West 34th Street
 
05/24
 
L+188
 
2.88%
 

 

 

 

 
205,000

 

 
205,000

606 Broadway
 
09/24
 
L+180
 
2.66%
 

 

 

 

 
70,866

 

 
70,866

33-00 Northern Boulevard
 
01/25
 
 
 
4.14%
(4)

 

 

 

 

 
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
 
2.98%
 

 

 

 

 

 
120,000

 
120,000

888 Seventh Avenue
 
12/25
 
 
 
3.25%
(5)

 

 

 

 

 
375,000

 
375,000

100 West 33rd Street - office and retail
 
04/26
 
L+155
 
2.93%
 

 

 

 

 

 
580,000

 
580,000

350 Park Avenue
 
01/27
 
 
 
3.92%
 

 

 

 

 

 
400,000

 
400,000

 
 
 
 
 
 
 
 
$
450,000

 
$
2,324,366

 
$
950,000

 
$

 
$
2,246,562

 
$
2,025,000

 
$
7,995,928

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Weighted average rate
 
 
 
 
 
 
 
3.95
%
 
3.46
%
 
3.34
%
 
%
 
2.65
%
 
3.37
%
 
3.22
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fixed rate debt
 
 
 
 
 
 
 
$
450,000

 
$
2,324,366

 
$
950,000

 
$

 
$
750,000

 
$
1,325,000

 
$
5,799,366

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

 
$

 
$

 
$

 
$
1,496,562

 
$
700,000

 
$
2,196,562

Floating weighted average rate expiring
 
 
 
 
 
 
 
%
 
%
 
%
 
%
 
2.03
%
 
2.94
%
 
2.32
%
________________________________
(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% (2.76% as of March 31, 2020).
(3)
Pursuant to an existing swap agreement, $750,000 of the loan bears interest at a fixed rate of 3.87% through October 2023, and the balance of $50,000 floats at a rate of LIBOR plus 1.00% (1.94% as of March 31, 2020). The entire $800,000 will float thereafter for the duration of the loan.
(4)
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% (2.81% as of March 31, 2020).
(5)
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% (2.62% as of March 31, 2020).



- 20 -


 https://cdn.kscope.io/b2f14cb77327575929dd0b4f568858d3-vornadologoa19.jpg

UNCONSOLIDATED JOINT VENTURES (unaudited)
 
 
 
 
 
 
(Amounts in thousands)
 
 
 
 
 
 
Joint Venture Name
 
Asset
Category
 
Percentage
Ownership at
March 31, 2020
 
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%
 
$
3,272,854

 
$
461,461

 
$
950,000

 
Various
 
Various
 
Various
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Alexander's
 
Office/Retail
 
32.4%
 
92,767

 
363,056

(3) 
1,120,544

 
Various
 
Various
 
Various
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Partially owned office buildings/land:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
One Park Avenue
 
Office/Retail
 
55.0%
 
139,236

 
165,000

 
300,000

 
03/21
 
L+175
 
2.76%
650 Madison Avenue
 
Office/Retail
 
20.1%
 
101,218

 
161,024

 
800,000

 
12/29
 
N/A
 
3.49%
280 Park Avenue
 
Office/Retail
 
50.0%
 
99,233

 
600,000

 
1,200,000

 
09/24
 
L+173
 
2.74%
512 West 22nd Street
 
Office
 
55.0%
 
60,325

 
61,382

 
111,604

 
06/24
 
L+200
 
2.86%
West 57th Street properties
 
Office/Retail/Land
 
50.0%
 
43,223

 
10,000

 
20,000

 
12/22
 
L+160
 
3.18%
825 Seventh Avenue
 
Office
 
50.0%
 
9,851

 
16,568

 
33,136

 
07/23
 
L+165
 
3.28%
61 Ninth Avenue
 
Office/Retail
 
45.1%
 
3,700

 
75,543

 
167,500

 
01/26
 
L+135
 
2.22%
Other
 
Office/Retail
 
Various
 
4,099

 
17,465

 
50,150

 
Various
 
Various
 
Various

 

 

 


 


 


 

 

 

Other equity method investments:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Independence Plaza
 
Residential/Retail
 
50.1%
 
65,385

 
338,175

 
675,000

 
07/25
 
N/A
 
4.25%
Rosslyn Plaza
 
Office/Residential
 
43.7% to 50.4%
 
31,925

 
19,465

 
38,613

 
06/22
 
L+195
 
3.53%
Other
 
Various
 
Various
 
46,975

 
91,591

 
576,200

 
Various
 
Various
 
Various
 
 
 
 
 
 
$
3,970,791

 
$
2,380,730

 
$
6,042,747

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
7 West 34th Street
 
Office/Retail
 
53.0%
 
(53,951
)
(4) 
159,000

 
300,000

 
06/26
 
N/A
 
3.65%
85 Tenth Avenue
 
Office/Retail
 
49.9%
 
(7,366
)
(4) 
311,875

 
625,000

 
12/26
 
N/A
 
4.55%
 
 
 
 
 
 
$
(61,317
)
 
$
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 the $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 $16,200 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.



- 21 -


 https://cdn.kscope.io/b2f14cb77327575929dd0b4f568858d3-vornadologoa19.jpg

UNCONSOLIDATED JOINT VENTURES (unaudited)
(Amounts in thousands)
 
 
 
 
 
 
 
Percentage
Ownership at
March 31, 2020
 
Our Share of
Net Income (Loss) for the
Three Months Ended March 31,
 
Our Share of NOI
(non-GAAP) for the
Three Months Ended March 31,
 
 
2020
 
2019
 
2020
 
2019
Joint Venture Name
 
 
 
 
 
 
 
 
 
New York:
 
 
 
 
 
 
 
 
 
Fifth Avenue and Times Square JV(1):
 
 
 
 
 
 
 
 
 
     Equity in net income
51.5%
 
$
5,496

 
$

 
$
33,214

 
$

     Return on preferred equity, net of our share of the expense
 
 
9,166

 

 

 

 
 
 
14,662

 

 
33,214

 

One Park Avenue
55.0%
 
1,852

 
1,657

 
4,976

 
5,293

Alexander's
32.4%
 
1,416

 
5,717

 
10,492

 
11,322

7 West 34th Street
53.0%
 
1,023

 
1,027

 
3,553

 
3,526

85 Tenth Avenue
49.9%
 
(990
)
 
(179
)
 
4,813

 
5,147

280 Park Avenue
50.0%
 
(827
)
 
(1,838
)
 
8,756

 
9,548

61 Ninth Avenue
45.1%
 
800

 
122

 
1,969

 
1,013

650 Madison Avenue
20.1%
 
(372
)
 
(1,154
)
 
2,834

 
2,458

West 57th Street properties
50.0%
 
(235
)
 
(100
)
 
89

 
258

Independence Plaza
50.1%
 
165

 
114

 
5,739

 
6,899

512 West 22nd Street
55.0%
 
62

 
(42
)
 
985

 
726

330 Madison Avenue(2)
N/A
 

 
581

 

 
2,639

Other, net
Various
 
(252
)
 
(500
)
 
988

 
746

 
 
 
17,304

 
5,405

 
78,408

 
49,575

 
 
 
 
 
 
 
 
 
 
Other:
 
 
 
 
 
 
 
 
 
Alexander's corporate fee income
32.4%
 
1,260

 
1,057

 
670

 
476

Rosslyn Plaza
43.7% to 50.4%
 
164

 
134

 
1,284

 
1,336

UE(3)
N/A
 

 
773

 

 
4,902

PREIT(4)
N/A
 

 
51

 

 
9,824

Other, net
Various
 
375

 
(100
)
 
1,519

 
1,289

 
 
 
1,799

 
1,915

 
3,473

 
17,827

 
 
 
 
 
 
 
 
 
 
Total
 
 
$
19,103

 
$
7,320

 
$
81,881

 
$
67,402

________________________________
(1)
Entered into 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 and on January 23, 2020, we sold all of our common shares.



- 22 -


 https://cdn.kscope.io/b2f14cb77327575929dd0b4f568858d3-vornadologoa19.jpg

PENN DISTRICT
 
 
 
 
 
 
 
 
 
 
 
 
 
 
ACTIVE DEVELOPMENT/REDEVELOPMENT SUMMARY - AS OF MARCH 31, 2020 (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) 
650,506

 
379,494

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

 
750,000

 
52,911

 
697,089

 
2024
 
8.4%
PENN1(4)
 
New York
 
2,546,000

 
325,000

 
95,919


229,081

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

 
7,360

 
92,640

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

 
806,696

 
1,398,304

(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 4.9 years.
(6) Expected to be funded from 220 CPS net sales proceeds and existing cash.




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.












- 23 -


 https://cdn.kscope.io/b2f14cb77327575929dd0b4f568858d3-vornadologoa19.jpg

OTHER DEVELOPMENT/REDEVELOPMENT SUMMARY - AS OF MARCH 31, 2020 (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

 
1,395,000

(1) 
55,000

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

 
46,000

 
36,526

 
9,474

 
2021
825 Seventh Avenue - office (50% interest)
 
New York
 
165,000

 
15,000

 
11,955

 
3,045

 
2021
Total Other Projects
 
 
 
 
 
1,511,000

 
1,443,481

 
67,519

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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.



- 24 -


 https://cdn.kscope.io/b2f14cb77327575929dd0b4f568858d3-vornadologoa19.jpg

CAPITAL EXPENDITURES, TENANT IMPROVEMENTS AND LEASING COMMISSIONS (unaudited)
 
CONSOLIDATED
 
(Amounts in thousands)
 
 
 
 
 
 
 
 
 
Three Months Ended
 
Year Ended December 31,
 
 
 
March 31, 2020
 
2019
 
2018
 
Amounts paid for capital expenditures:
 
 
 
 
 
 
 
Expenditures to maintain assets
 
$
20,743

 
$
93,226

 
$
92,386

 
Tenant improvements
 
20,223

 
98,261

 
100,191

 
Leasing commissions
 
11,137

 
18,229

 
33,254

 
Recurring tenant improvements, leasing commissions and other capital expenditures
 
52,103

 
209,716

 
225,831

 
Non-recurring capital expenditures
 
6,753

 
30,374

 
43,135

 
Total capital expenditures and leasing commissions
 
$
58,856

 
$
240,090

 
$
268,966

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended
 
Year Ended December 31,
 
 
 
March 31, 2020
 
2019
 
2018
 
Amounts paid for development and redevelopment expenditures:
 
 
 
 
 
 
 
Farley Office and Retail Building
 
$
69,540

 
$
265,455

 
$
18,995

(1) 
220 CPS
 
29,331

 
181,177

 
295,827

 
PENN1
 
28,024

 
51,168

 
8,856

 
PENN2
 
20,507

 
28,719

 
16,288

 
345 Montgomery Street
 
6,798

 
29,441

 
18,187

 
Other
 
15,645

 
93,096

 
60,033

 
 
 
$
169,845

 
$
649,056

 
$
418,186

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




- 25 -


 https://cdn.kscope.io/b2f14cb77327575929dd0b4f568858d3-vornadologoa19.jpg

CAPITAL EXPENDITURES, TENANT IMPROVEMENTS AND LEASING COMMISSIONS (unaudited)
 
NEW YORK SEGMENT
 
(Amounts in thousands)
 
 
 
 
 
 
 
 
 
 
 
 Three Months Ended
 
 Year Ended December 31,
 
 
 
March 31, 2020
 
2019
 
2018
 
Amounts paid for capital expenditures:
 
 
 
 
 
 
 
Expenditures to maintain assets
 
$
18,012

 
$
80,416

 
$
70,954

 
Tenant improvements
 
17,316

 
84,870

 
76,187

 
Leasing commissions
 
7,237

 
16,316

 
29,435

 
Recurring tenant improvements, leasing commissions and other capital expenditures
 
42,565

 
181,602

 
176,576

 
Non-recurring capital expenditures
 
6,748

 
28,269

 
31,381

 
Total capital expenditures and leasing commissions
 
$
49,313

 
$
209,871

 
$
207,957

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 Three Months Ended
 
 Year Ended December 31,
 
 
 
March 31, 2020
 
2019
 
2018
 
Amounts paid for development and redevelopment expenditures:
 
 
 
 
 
 
 
Farley Office and Retail Building
 
$
69,540

 
$
265,455

 
$
18,995

(1) 
PENN1
 
28,024

 
51,168

 
8,856

 
PENN2
 
20,507

 
28,719

 
16,288

 
Other
 
14,721

 
86,593

 
44,976

 
 
 
$
132,792

 
$
431,935

 
$
89,115

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



- 26 -


 https://cdn.kscope.io/b2f14cb77327575929dd0b4f568858d3-vornadologoa19.jpg

CAPITAL EXPENDITURES,TENANT IMPROVEMENTS AND LEASING COMMISSIONS (unaudited)
theMART
(Amounts in thousands)
 
 
 
 
 
 
 
 
 Three Months Ended
 
 Year Ended December 31,
 
 
March 31, 2020
 
2019
 
2018
Amounts paid for capital expenditures:
 
 
 
 
 
 
Expenditures to maintain assets
 
$
1,923

 
$
9,566

 
$
13,282

Tenant improvements
 
776

 
9,244

 
15,106

Leasing commissions
 
3,153

 
827

 
459

Recurring tenant improvements, leasing commissions and other capital expenditures
 
5,852

 
19,637

 
28,847

Non-recurring capital expenditures
 
5

 
332

 
260

Total capital expenditures and leasing commissions
 
$
5,857

 
$
19,969

 
$
29,107

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 Three Months Ended
 
 Year Ended December 31,
 
 
March 31, 2020
 
2019
 
2018
Amounts paid for development and redevelopment expenditures:
 
 
 
 
 
 
Common area enhancements
 
$
439

 
$
476

 
$
51

Other
 
137

 
1,846

 
10,739

 
 
$
576

 
$
2,322

 
$
10,790


- 27 -


 https://cdn.kscope.io/b2f14cb77327575929dd0b4f568858d3-vornadologoa19.jpg

CAPITAL EXPENDITURES, TENANT IMPROVEMENTS AND LEASING COMMISSIONS (unaudited)
555 CALIFORNIA STREET
 
 
 
 
 
 
(Amounts in thousands)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 Three Months Ended
 
 Year Ended December 31,
 
 
March 31, 2020
 
2019
 
2018
Amounts paid for capital expenditures:
 
 
 
 
 
 
Expenditures to maintain assets
 
$
808

 
$
3,244

 
$
8,150

Tenant improvements
 
2,131

 
4,147

 
8,898

Leasing commissions
 
747

 
1,086

 
3,360

Recurring tenant improvements, leasing commissions and other capital expenditures
 
3,686

 
8,477

 
20,408

Non-recurring capital expenditures
 

 
1,773

 
11,494

Total capital expenditures and leasing commissions
 
$
3,686

 
$
10,250

 
$
31,902

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 Three Months Ended
 
 Year Ended December 31,
 
 
March 31, 2020
 
2019
 
2018
Amounts paid for development and redevelopment expenditures:
 
 
 
 
 
 
345 Montgomery Street
 
$
6,798

 
$
29,441

 
$
18,187

Other
 

 
3,896

 
445

 
 
$
6,798

 
$
33,337

 
$
18,632



- 28 -


 https://cdn.kscope.io/b2f14cb77327575929dd0b4f568858d3-vornadologoa19.jpg

CAPITAL EXPENDITURES, TENANT IMPROVEMENTS AND LEASING COMMISSIONS (unaudited)
OTHER
(Amounts in thousands)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 Three Months Ended
 
 Year Ended December 31,
 
 
March 31, 2020
 
2019
 
2018
Amounts paid for development and redevelopment expenditures:
 
 
 
 
 
 
220 CPS
 
$
29,331

 
$
181,177

 
$
295,827

Other
 
348

 
285

 
3,822

 
 
$
29,679

 
$
181,462

 
$
299,649



- 29 -


 https://cdn.kscope.io/b2f14cb77327575929dd0b4f568858d3-vornadologoa19.jpg

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
20,667

 
17,603

 
1,475

 
15,945

 

 
183

 

Retail
2,713

 
2,242

 
412

 

 
1,830

 

 

Residential - 1,678 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

 
28,755

 
22,831

 
1,957

 
16,235

 
2,180

 
183

 
2,276

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Other:
 
 
 
 
 
 
 
 
 
 
 
 
 
theMART
3,900

 
3,891

 
75

 
2,045

 
105

 
1,317

 
349

555 California Street (70% interest)
1,819

 
1,273

 
55

 
1,185

 
33

 

 

Other
2,837

 
1,338

 
140

 
212

 
875

 

 
111

 
8,556

 
6,502

 
270

 
3,442

 
1,013

 
1,317

 
460

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total square feet at March 31, 2020
37,311

 
29,333

 
2,227

 
19,677

 
3,193

 
1,500

 
2,736

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total square feet at December 31, 2019
37,310

 
29,332

 
2,146

 
19,744

 
3,205

 
1,501

 
2,736

 
 
 
 
 
 
 
 
 
 
 
 
 
 
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 March 31, 2020
2,806

 
19

 
8,059

 
 
 
 
 
 
 
 



- 30 -


 https://cdn.kscope.io/b2f14cb77327575929dd0b4f568858d3-vornadologoa19.jpg

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

 
$
77,530

 
3.6
%
 IPG and affiliates
 
967,552

 
65,520

 
3.0
%
 Bloomberg L.P.
 
303,147

 
39,026

 
1.8
%
 Google/Motorola Mobility (guaranteed by Google)
 
728,483

 
36,031

 
1.7
%
 Equitable
 
336,646

 
34,964

 
1.6
%
 Verizon Media Group
 
327,138

 
31,920

 
1.5
%
 Swatch Group USA(3)
 
14,950

 
29,697

 
1.4
%
 Amazon (including its Whole Foods subsidiary)
 
310,272

 
28,855

 
1.3
%
 LVMH Brands
 
77,585

 
26,623

 
1.2
%
 The City of New York
 
563,545

 
25,233

 
1.2
%
 Neuberger Berman Group LLC
 
306,611

 
24,843

 
1.1
%
 AMC Networks, Inc.
 
326,061

 
23,609

 
1.1
%
 Madison Square Garden & Affiliates
 
348,740

 
22,881

 
1.1
%
 JCPenney
 
426,370

 
22,707

 
1.0
%
 Bank of America
 
247,460

 
22,675

 
1.0
%
 Macy's
 
366,876

 
21,880

 
1.0
%
 New York University
 
347,948

 
20,624

 
1.0
%
 PwC
 
241,196

 
17,731

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

 
17,675

 
0.8
%
 Ziff Brothers Investments, Inc.
 
147,476

 
16,049

 
0.7
%
 U.S. Government
 
578,711

 
14,477

 
0.7
%
 Apple
 
220,229

 
13,214

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

 
13,179

 
0.6
%
 Cushman & Wakefield
 
127,314

 
12,878

 
0.6
%
 Citadel
 
119,421

 
11,942

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

 
11,074

 
0.5
%
 Hollister(3)
 
11,306

 
11,065

 
0.5
%
 Foot Locker
 
149,987

 
10,719

 
0.5
%
 Forest Laboratories
 
168,673

 
10,638

 
0.5
%
 Kirkland & Ellis LLP
 
106,752

 
10,527

 
0.5
%
 
 
 

 
 

 
33.5
%
________________________________
(1)
Includes leases not yet commenced.
(2)
See reconciliation of our annualized revenue at share on page xii in the Appendix.
(3)
Tenant annualized revenues adjusted to reflect the transfer of the 45.4% interest in Fifth Avenue and Times Square JV.

- 31 -


 https://cdn.kscope.io/b2f14cb77327575929dd0b4f568858d3-vornadologoa19.jpg

OCCUPANCY (unaudited)
 
 
 
 
 
 
 
 
 
New York
 
theMART
 
555 California Street
Occupancy rate at:
 
 
 
 
 
 
March 31, 2020
 
96.7
%
 
91.9
%
 
99.8
%
December 31, 2019
 
96.7
%
 
94.6
%
 
99.8
%
March 31, 2019
 
97.0
%
 
94.9
%
 
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:
 
 
 
 
 
 
 
March 31, 2020
1,990
 
954
 
96.1%
 
$3,919
December 31, 2019
1,991
 
955
 
97.0%
 
$3,889
March 31, 2019
1,995
 
959
 
96.7%
 
$3,821


- 32 -


 https://cdn.kscope.io/b2f14cb77327575929dd0b4f568858d3-vornadologoa19.jpg

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
 
 
3,892

 
 
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.


- 33 -


 https://cdn.kscope.io/b2f14cb77327575929dd0b4f568858d3-vornadologoa19.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:
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 
Penn District:
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 
PENN1
 
 

 
 

 
 
 
 
 
 
 
 
 
 
 
 
(ground leased through 2098)**
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
Cisco, WSP USA, Symantec Corporation,
-Office
 
100.0
%
 
90.5
%
 
$
69.71

 
2,274,000

 
2,105,000

 
169,000

 
 
 
United Healthcare Services, Inc., Siemens Mobility
-Retail
 
100.0
%
 
86.0
%
 
282.26

 
272,000

 
102,000

 
170,000

 
 
 
Bank of America, Shake Shack, Starbucks
 
 
100.0
%
 
90.4
%
 
77.24

 
2,546,000

 
2,207,000

 
339,000

 
$

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
PENN2
 
 

 
 

 
 
 
 

 
 

 
 

 
 

 
 
-Office
 
100.0
%
 
100.0
%
 
64.10

 
1,572,000

 
1,127,000

 
445,000

 
 
 
Madison Square Garden, EMC
-Retail
 
100.0
%
 
100.0
%
 
218.67

 
43,000

 
38,000

 
5,000

 
 
 
Chase Manhattan Bank
 
 
100.0
%
 
100.0
%
 
69.21

 
1,615,000

 
1,165,000

 
450,000

 
575,000 (3)

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
PENN11
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 
 
 
 
 
 
 
 
 


 
 
 
 
 
 
 
Madison Square Garden, AMC Networks, Inc., Information Builders, Inc.*,
-Office
 
100.0
%
 
100.0
%
 
64.12

 
1,113,000

 
1,113,000

 

 
 

 
Apple*, Macy's
-Retail
 
100.0
%
 
95.2
%
 
138.43

 
40,000

 
40,000

 

 
 
 
PNC Bank National Association, Starbucks
 
 
100.0
%
 
99.8
%
 
66.58

 
1,153,000

 
1,153,000

 

 
450,000

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
100 West 33rd Street
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 
-Office
 
100.0
%
 
100.0
%
 
68.06

 
859,000

 
859,000

 

 
398,402

 
IPG and affiliates
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Manhattan Mall
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 
-Retail
 
100.0
%
 
96.7
%
 
130.90

 
256,000

 
256,000

 

 
181,598

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

 
 

 
 

 
 

 
 

 
 

 
 

 
 
(65.2% ground leased through 2149)**
 
 

 
 

 
 

 
 
 
 
 
 
 
 
 
New York & Company, Inc., Structure Tone,
-Office
 
100.0
%
 
100.0
%
 
66.14

 
703,000

 
703,000

 

 
 
 
Deutsch, Inc., Web.com, Footlocker, Home Advisor, Inc.
-Retail
 
100.0
%
 
34.5
%
 
145.61

 
21,000

 
21,000

 

 
 
 
Starbucks
 
 
100.0
%
 
98.6
%
 
66.71

 
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
%
 
89.3
%
 
368.01

 
19,000

 
19,000

 

 
 
 
Amazon, Lindt, Naturalizer (guaranteed by Caleres)
 
 
53.0
%
 
99.6
%
 
81.88

 
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
%
 

 

 
6,000

 

 
6,000

 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
138-142 West 32nd Street
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 
-Retail
 
100.0
%
 
100.0
%
 
114.69

 
8,000

 
8,000

 

 

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

 
78,000

 
78,000

 

 
205,000

 
Old Navy
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

- 34 -


 https://cdn.kscope.io/b2f14cb77327575929dd0b4f568858d3-vornadologoa19.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):
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 
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
%
 
84.8
%
 
187.14

 
16,000

 
16,000

 

 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Penn District
 
 

 
 

 
 
 
7,817,000

 
7,022,000

 
795,000

 
2,255,846

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Midtown East:
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 
909 Third Avenue
 
 

 
 

 
 
 
 
 
 
 
 
 
 
 
 
(ground leased through 2063)**
 
 

 
 

 
 
 
 
 
 
 
 
 
 
 
IPG and affiliates, Forest Laboratories,
-Office
 
100.0
%
 
98.6
%
 
65.23

(5) 
1,350,000

 
1,350,000

 

 
350,000

 
Geller & Company, Morrison Cohen LLP,
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
United States Post Office, Thomson Reuters LLC, Sard Verbinnen
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
150 East 58th Street(6)
 
 

 
 

 
 

 
 
 
 
 
 
 
 

 
 
-Office
 
100.0
%
 
97.1
%
 
78.91

 
540,000

 
540,000

 

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

 
3,000

 
3,000

 

 
 
 
 
 
 
100.0
%
 
96.7
%
 
78.87

 
543,000

 
543,000

 

 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
715 Lexington Avenue
 
 

 
 

 
 
 
 
 
 
 
 
 
 
 
 
-Retail
 
100.0
%
 
100.0
%
 
255.98

 
22,000

 
10,000

 
12,000

 

 
Orangetheory Fitness*, Casper, Santander Bank
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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
 
 

 
 

 
 
 
1,929,000

 
1,917,000


12,000


350,000

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Midtown West:
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 
888 Seventh Avenue
 
 

 
 

 
 
 
 
 
 
 
 
 
 
 
 
(ground leased through 2067)**
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
Axon Capital LP, Lone Star US Acquisitions LLC,
-Office
 
100.0
%
 
93.6
%
 
92.72

 
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
%
 
93.6
%
 
94.80

 
885,000

 
885,000

 

 
375,000

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
57th Street - 2 buildings
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 
-Office
 
50.0
%
 
64.0
%
 
57.87

 
81,000

 
81,000

 

 
 
 
 
-Retail
 
50.0
%
 
100.0
%
 
140.71

 
22,000

 
22,000

 

 
 
 
 
 
 
50.0
%
 
70.0
%
 
129.37

 
103,000

 
103,000

 

 
20,000

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Midtown West
 
 

 
 

 
 

 
988,000

 
988,000

 

 
395,000

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

- 35 -


 https://cdn.kscope.io/b2f14cb77327575929dd0b4f568858d3-vornadologoa19.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:
 
 

 
 

 
 

 
 

 
 
 
 

 
 

 
 
280 Park Avenue
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
Cohen & Steers Inc., Franklin Templeton Co. LLC,
-Office
 
50.0
%
 
97.4
%
 
$
104.18

 
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
%
 
103.61

 
1,262,000

 
1,262,000

 

 
$
1,200,000

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
350 Park Avenue
 
 

 
 

 
 

 
 

 
 
 
 

 
 

 
Kissinger Associates Inc., Ziff Brothers Investment Inc., Citadel*,
-Office
 
100.0
%
 
97.2
%
 
108.65

 
554,000

 
554,000

 

 
 
 
MFA Financial Inc., M&T Bank, Square Mile Capital Management*
-Retail
 
100.0
%
 
100.0
%
 
278.06

 
18,000

 
18,000

 

 
 
 
Fidelity Investments, AT&T Wireless, Valley National Bank
 
 
100.0
%
 
97.3
%
 
113.99

 
572,000

 
572,000




400,000

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Park Avenue
 
 

 
 

 
 
 
1,834,000

 
1,834,000

 

 
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
%
 
154.98

 
18,000

 
18,000

 

 
 
 
Citibank, Starbucks
 
 
100.0
%
 
98.8
%
 
80.01

 
956,000

 
956,000



 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
510 Fifth Avenue
 
 

 
 

 
 
 
 
 
 
 
 
 
 
 
 
-Retail
 
100.0
%
 
100.0
%
 
161.00

 
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
%
 
96.76

 
246,000

 
246,000

 

 
 
 
Avolon Aerospace, GCA Savvian Inc.
-Retail
 
52.0
%
 
100.0
%
 
939.34

 
69,000

 
69,000

 

 
 
 
Victoria's Secret (guaranteed by L Brands, Inc.), Dyson
 
 
52.0
%
 
96.2
%
 
229.68

 
315,000

 
315,000

 

 
500,000

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
666 Fifth Avenue
 
 
 
 

 
 

 
 

 
 
 
 

 
 
 
 
-Retail
 
52.0
%
 
100.0
%
 
491.03

 
114,000

(7) 
114,000

 

 

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

 
 

 
 

 
 

 
 
 
 

 
 
 
Beauvais Carpets, Levin Capital Strategies LP,
-Office
 
100.0
%
 
88.1
%
 
87.00

 
297,000

 
297,000

 

 
 
 
Cosmetech Mably Int'l LLC.
-Retail
 
100.0
%
 
83.9
%
 
753.91

 
32,000

 
32,000

 

 
 
 
Fendi*, Berluti*
 
 
100.0
%
 
87.9
%
 
127.90

 
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
%
 
988.39

 
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
%
 
95.56

 
81,000

 
81,000

 

 
 
 
Yamaha Artist Services Inc., Brunello Cucinelli USA Inc.
-Retail
 
52.0
%
 
9.3
%
 
3,612.89

 
17,000

 
17,000

 

 
 
 
MAC Cosmetics
 
 
52.0
%
 
85.3
%
 
157.87

 
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
%
 
3,040.13

 
26,000

 
26,000

 

 
450,000

 
Swatch Group USA, Harry Winston
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Madison/Fifth
 
 

 
 

 
 

 
1,540,000

 
1,540,000

 

 
1,750,000

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

- 36 -


 https://cdn.kscope.io/b2f14cb77327575929dd0b4f568858d3-vornadologoa19.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
%
 
59.95

 
865,000

 
865,000

 

 
 
 
automotiveMastermind
-Retail
 
55.0
%
 
100.0
%
 
85.53

 
78,000

 
78,000

 

 
 
 
Bank of Baroda, Citibank, Equinox, Men's Wearhouse
 
 
55.0
%
 
100.0
%
 
62.03

 
943,000

 
943,000

 

 
300,000

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
4 Union Square South
 
 

 
 

 
 
 
 
 
 
 
 
 
 
 
 
-Retail
 
100.0
%
 
94.5
%
 
133.76

 
206,000

 
206,000

 

 
120,000

 
Burlington, Whole Foods Market, DSW, Sephora*
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
692 Broadway
 
 

 
 

 
 
 
 
 
 
 
 
 
 
 
 
-Retail
 
100.0
%
 
100.0
%
 
96.98

 
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
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
Equitable, Hachette Book Group Inc., Venable LLP,
 
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
Bryan Cave LLP, Neuberger Berman Group LLC, SSB Realty LLC,
-Office
 
70.0
%
 
99.7
%
 
86.58

 
2,043,000

 
2,043,000

 

 
 
 
Cushman & Wakefield, Columbia University, LinkLaters*
-Retail
 
70.0
%
 
100.0
%
 
194.57

 
75,000

 
75,000

 

 
 
 
Duane Reade, JPMorgan Chase Bank, Sovereign Bank, Starbucks
 
 
70.0
%
 
99.7
%
 
89.49

 
2,118,000

 
2,118,000

 

 
950,000

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
608 Fifth Avenue (8)
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 
(ground leased through 2033)**
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 
-Office
 
100.0
%
 
91.0
%
 
76.71

 
93,000

 
93,000

 

 
 
 
 
-Retail
 
100.0
%
 

 

 
44,000

 

 
44,000

 
 
 
 
 
 
100.0
%
 
91.0
%
 
76.71

 
137,000

 
93,000

 
44,000

 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Rockefeller Center
 
 

 
 

 
 
 
2,255,000

 
2,211,000

 
44,000

 
950,000

 
 
Wall Street/Downtown:
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 
40 Fulton Street
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 
-Office
 
100.0
%
 
76.0
%
 
52.22

 
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
%
 
76.4
%
 
53.85

 
251,000

 
251,000

 

 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Soho:
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 
478-486 Broadway - 2 buildings
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
-Retail
 
100.0
%
 
100.0
%
 
353.39

 
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

 

 
 

- 37 -


 https://cdn.kscope.io/b2f14cb77327575929dd0b4f568858d3-vornadologoa19.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
%
 
607.86

 
6,000

 
6,000

 

 
 
 
HSBC, Harman International*
 
 
50.0
%
 
100.0
%
 
179.82

 
36,000

 
36,000

 

 
$
70,866

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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
%
 
122.59

 
50,000

 
50,000

 

 

 
Vera Bradley
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
148 Spring Street
 
 

 
 

 
 
 
 
 
 
 
 
 
 
 
 
-Retail
 
100.0
%
 
100.0
%
 
196.48

 
8,000

 
8,000

 

 

 
Dr. Martens
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
150 Spring Street
 
 

 
 

 
 
 
 
 
 
 
 
 
 
 
 
-Retail
 
100.0
%
 
100.0
%
 
304.81

 
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

 
70,866

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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
%
 
1,074.51

 
45,000

 
45,000

 

 
 
 
T-Mobile, Invicta, Swatch Group USA, Levi's, Sephora
-Theatre
 
52.0
%
 
100.0
%
 
14.25

 
62,000

 
62,000

 

 
 
 
Nederlander-Marquis Theatre
 
 
52.0
%
 
98.3
%
 
400.73

 
107,000

 
107,000

 

 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Times Square
 
 

 
 

 
 
 
268,000

 
268,000

 

 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Upper East Side:
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 
828-850 Madison Avenue
 
 

 
 

 
 

 
 
 
 
 
 
 
 
 
 
-Retail
 
100.0
%
 
89.3
%
 
238.88

 
18,000

 
13,000

 
5,000

 

 
Christofle Silver Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
677-679 Madison Avenue
 
 

 
 

 
 
 
 
 
 
 
 
 
 
 
 
-Retail
 
100.0
%
 
100.0
%
 
534.70

 
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
%
 
178.06

 
23,000

 
23,000

 

 

 
Nike, Crunch LLC, J.Jill
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

- 38 -


 https://cdn.kscope.io/b2f14cb77327575929dd0b4f568858d3-vornadologoa19.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
%
 
42.8
%
 
$
1,488.25

 
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

 
75,000

 
5,000

 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Long Island City:
 
 

 
 

 
 

 
 
 
 
 
 

 
 

 
 
33-00 Northern Boulevard (Center Building)
 
 

 
 

 
 

 
 
 
 
 
 

 
 

 
 
-Office
 
100.0
%
 
95.5
%
 
36.44

 
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
%
 
53.66

 
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
%
 
90.49

 
584,000

 
584,000

 

 
 
 
Moet Hennessy USA. Inc.
-Retail
 
49.9
%
 
100.0
%
 
86.78

 
43,000

 
43,000

 

 
 
 
IL Posto LLC, Toro NYC Restaurant, L'Atelier
 
 
49.9
%
 
100.0
%
 
90.26

 
627,000

 
627,000

 

 
625,000

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
537 West 26th Street
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
-Other (event space)
 
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

 
111,604

 
Warner Media, Next Jump*, Galeria Nara Roesler*
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Chelsea/Meatpacking District
 
 

 
 

 
 
 
1,164,000


1,011,000

 
153,000

 
904,104

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Upper West Side:
 
 

 
 

 
 
 
 

 
 

 
 

 
 

 
 
50-70 W 93rd Street
 
 

 
 

 
 
 
 
 
 
 
 
 
 
 
 
-Residential (325 units)
 
49.9
%
 
96.0
%
 
 
 
283,000

 
283,000

 

 
82,500

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Tribeca:
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 
Independence Plaza
 
 

 
 

 
 
 
 
 
 
 
 
 
 
 
 
-Residential (1,327 units)
 
50.1
%
 
96.1
%
 

 
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
%
 
24.49

 
129,000

 
129,000

 

 

 
Vornado's Administrative Headquarters
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

- 39 -


 https://cdn.kscope.io/b2f14cb77327575929dd0b4f568858d3-vornadologoa19.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):
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 
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

 

 
 
-Retail
 
100.0
%
 

 

 
4,000

 

 
4,000

 

 
 
 
 
51.2
%
 

 

 
169,000

 

 
169,000

 
33,136

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Property under Development
 
 
 
 
 
 
 
1,013,000




1,013,000


33,136

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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
%
 
$
79.08

 
20,667,000

 
19,005,000

 
1,662,000

 
$
8,405,792

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Vornado's Ownership Interest
 
 

 
96.9
%
 
$
76.68

 
17,603,000

 
16,128,000

 
1,475,000

 
$
5,851,184

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
New York Retail:
 
 

 
 
 
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total
 
 

 
95.5
%
 
$
248.18

 
2,713,000

 
2,287,000

 
426,000

 
$
1,123,160

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Vornado's Ownership Interest
 
 

 
94.9
%
 
$
211.50

 
2,242,000

 
1,830,000

 
412,000

 
$
839,263

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
New York Residential:
 
 

 
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total
 
 

 
96.0
%
 
 

 
1,526,000

 
1,526,000

 

 
$
757,500

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Vornado's Ownership Interest
 
 

 
96.1
%
 
 

 
793,000

 
793,000

 

 
$
379,342

 
 

- 40 -


 https://cdn.kscope.io/b2f14cb77327575929dd0b4f568858d3-vornadologoa19.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):
 
 

 
 

 
 
 
 
 
 
 
 
 
 
 
 
ALEXANDER'S, INC.:
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 
New York:
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 
731 Lexington Avenue, Manhattan
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 
-Office
 
32.4
%
 
100.0
%
 
$
129.08

 
920,000

 
896,000

 
24,000

 
$
500,000

 
Bloomberg
-Retail
 
32.4
%
 
93.4
%
 
276.84

 
155,000

 
155,000

 

 
350,000

 
The Home Depot, The Container Store, Hutong
 
 
32.4
%
 
99.0
%
 
147.34

 
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
%
 
90.6
%
 
61.00

 
609,000

 
609,000

 

 
202,544

(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
%
 
95.8
%
 

 
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
%
 
96.01

 
2,449,000

 
2,230,000

 
219,000

 
1,120,544

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Hotel Pennsylvania:
 
 

 
 

 
 
 
 
 
 
 
 
 
 
 
 
-Hotel (1,700 Rooms)
 
100.0
%
 
 

 
 

 
1,400,000

 
1,400,000

 

 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total New York
 
 

 
96.9
%
 
$
95.67

 
28,755,000

 
26,448,000

 
2,307,000

 
$
11,406,996

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Vornado's Ownership Interest
 
 

 
96.7
%
 
$
89.53

 
22,831,000

 
20,874,000

 
1,957,000

 
$
7,432,845

 
 
________________________________
*    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 de minimis 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 lease 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 $50,000 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.



- 41 -


 https://cdn.kscope.io/b2f14cb77327575929dd0b4f568858d3-vornadologoa19.jpg

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, Publicis Groupe (Razorfish),
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1871, ANGI Home Services, Inc, Yelp Inc., Paypal, Inc.,
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Allscripts Healthcare, Kellogg Company,
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Chicago School of Professional Psychology,
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Innovation Development Institute, Inc., Chicago Teachers Union,
-Office
 
100.0
%
 
89.4
%
 
$
44.34

 
2,045,000

 
2,045,000

 

 
 
 
ConAgra Foods Inc., Allstate Insurance Company
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Steelcase, Baker, Knapp & Tubbs, Holly Hunt Ltd.,
-Showroom/Trade show
 
100.0
%
 
95.0
%
 
54.28

 
1,533,000

 
1,533,000

 

 
 
 
Allsteel Inc., Teknion LLC
-Retail
 
100.0
%
 
95.8
%
 
56.55

 
95,000

 
95,000

 

 
 
 
 
 
 
100.0
%
 
91.9
%
 
48.94

 
3,673,000

 
3,673,000

 

 
$
675,000

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Other (2 properties)
 
50.0
%
 
100.0
%
 
45.57

 
19,000

 
19,000

 

 
31,287

 
 
Total theMART, Chicago
 
 
 
 
 
 
 
3,692,000

 
3,692,000

 

 
706,287

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

 

 
208,000

 
133,000

 
75,000

 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total theMART
 
 
 
92.0
%
 
$
48.92

 
3,900,000

 
3,825,000

 
75,000

 
$
706,287

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Vornado's Ownership Interest
 
 
 
91.9
%
 
$
48.93

 
3,891,000

 
3,816,000

 
75,000

 
$
690,644

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
555 California Street:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
555 California Street
 
70.0
%
 
99.7
%
 
$
82.69

 
1,506,000

 
1,506,000

 

 
$
546,214

 
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
%
 
83.53

 
235,000

 
235,000

 

 

 
Bank of America, N.A., Regus, Ripple Labs Inc., Blue Shield,
Lending Home Corporation
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
345 Montgomery Street
 
70.0
%
 

 

 
78,000

 

 
78,000

 

 
Regus*
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total 555 California Street
 
 
 
99.8
%
 
$
82.81

 
1,819,000

 
1,741,000

 
78,000

 
$
546,214

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Vornado's Ownership Interest
 
 
 
99.8
%
 
$
82.81

 
1,273,000

 
1,218,000

 
55,000

 
$
382,349

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
________________________________
*    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.

- 42 -


 https://cdn.kscope.io/b2f14cb77327575929dd0b4f568858d3-vornadologoa19.jpg

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
%
 
$
261.61

 
96,000

 
96,000

 

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

 
59,000

 

 
 
 
 
 
 
100.0
%
 
97.1
%
 
 
 
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
%
 
176.33

 
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

 

 
272,355

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
501 Broadway
 
100.0
%
 
100.0
%
 
291.66

 
9,000

 
9,000

 

 
22,872

 
Capital One Financial Corporation
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Miami, FL:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1100 Lincoln Road
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
     -Retail
 
100.0
%
 
61.9
%
 
181.74

 
51,000

 
51,000

 

 
 
 
Banana Republic
     -Theatre
 
100.0
%
 
100.0
%
 
43.75

 
79,000

 
79,000

 

 
 
 
Regal Cinema
 
 
100.0
%
 
85.1
%
 
80.55

 
130,000

 
130,000

 

 
82,750

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Real Estate Fund
 
88.8
%
 
95.3
%
 
 
 
540,000

 
540,000

 

 
$
523,052

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Vornado's Ownership Interest
 
28.6
%
 
96.4
%
 
 
 
155,000

 
155,000

 

 
$
152,552

 
 
________________________________
*    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.



- 43 -


 https://cdn.kscope.io/b2f14cb77327575929dd0b4f568858d3-vornadologoa19.jpg

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
%
 
$
46.72

 
736,000

 
432,000

 

 
304,000

 
 
 
Corporate Executive Board, Nathan Associates, Inc.
-Residential - 2 buildings (197 units)
 
43.7
%
 
99.0
%
 
 
 
253,000

 
253,000

 

 

 
 
 
 
 
 
 
 
 
 
 
 
989,000

 
685,000

 

 
304,000

 
$
38,613

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fashion Centre Mall
 
7.5
%
 
94.9
%
 
47.65

 
868,000

 
868,000

 

 

 
410,000

 
Macy's, Nordstrom
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Washington Tower
 
7.5
%
 
75.0
%
 
54.20

 
170,000

 
170,000

 

 

 
40,000

 
The Rand Corporation
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
New Jersey:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Wayne Town Center, Wayne
    (ground leased through 2064)**
 
100.0
%
 
100.0
%
 
33.46

 
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
 
 
 
90.1
%
 
$
40.80

 
2,837,000

 
2,090,000

 
443,000

 
304,000

 
$
488,613

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Vornado's Ownership Interest
 
 
 
93.4
%
 
$
33.20

 
1,338,000

 
755,000

 
443,000

 
140,000

 
$
53,215

 
 
________________________________
**    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.





- 44 -


 https://cdn.kscope.io/b2f14cb77327575929dd0b4f568858d3-vornadologoa19.jpg

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
 
 
Richard Skidmore/Melissa Funk
 
Nicholas Yulico/Joshua Burr
Bank of America/BofA Securities
 
 
Goldman Sachs
 
Scotia Capital (USA) Inc
646-855-5808/646-855-1589
 
 
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
 
 
 
 
 
 
 
 
Steve Sakwa/Jason Green
 
 
Alexander Goldfarb/Daniel Santos
 
 
Evercore ISI
 
 
Piper Sandler
 
 
212-446-9462/212-446-9449
 
 
212-466-7937/212-466-7927
 
 
 
 
 
 
 
 
RESEARCH COVERAGE - DEBT
 
 
 
 
 
 
Andrew Molloy
 
 
Jesse Rosenthal
 
 
Bank of America/Merrill Lynch
 
 
CreditSights
 
 
646-855-6435
 
 
212-340-3816
 
 
 
 
 
 
 
 
Thierry Perrein
 
 
Mark Streeter
 
 
Wells Fargo Securities
 
 
JP Morgan
 
 
704-410-3262
 
 
212-834-5086
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Research Coverage - Equity and Debt is provided as a service to interested parties and not as an endorsement of any report, or representation as to the accuracy of any information contained therein. Opinions, forecasts and other forward-looking statements expressed in analysts' reports are subject to change without notice.        

- 45 -


 https://cdn.kscope.io/b2f14cb77327575929dd0b4f568858d3-vornadologoa19.jpg




APPENDIX
DEFINITIONS AND NON-GAAP RECONCILIATIONS




 https://cdn.kscope.io/b2f14cb77327575929dd0b4f568858d3-vornadologoa19.jpg

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.


- i -


 https://cdn.kscope.io/b2f14cb77327575929dd0b4f568858d3-vornadologoa19.jpg

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
 
 
March 31,
 
December 31,
2019
 
 
2020
 
2019
 
Net income attributable to common shareholders
(A)
$
4,963

 
$
181,488

 
$
193,217

Per diluted share
 
$
0.03

 
$
0.95

 
$
1.01

 
 
 
 
 
 
 
Certain (income) expense items that impact net income attributable to common shareholders:
 
 
 
 
 
 
After-tax net gain on sale of 220 CPS condominium units
 
$
(59,911
)
 
$
(130,954
)
 
$
(173,655
)
Our share of loss from real estate fund investments
 
56,158

 
2,904

 
26,600

Credit losses on loans receivable resulting from a new GAAP accounting standard effective January 1, 2020
 
7,261

 

 

Mark-to-market decrease in PREIT common shares (accounted for as a marketable security from March 12, 2019 and sold on January 23, 2020)
 
4,938

 
15,649

 
2,438

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

 

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

 
(16,068
)
 

Other
 
7,896

 
1,152

 
(1,469
)
 
 
16,342

 
(167,172
)
 
(146,086
)
Noncontrolling interests' share of above adjustments
 
(1,072
)
 
10,498

 
9,250

Total of certain expense (income) items that impact net income attributable to common shareholders
(B)
$
15,270

 
$
(156,674
)
 
$
(136,836
)
Per diluted share (non-GAAP)
 
$
0.08

 
$
(0.82
)
 
$
(0.72
)
 
 
 
 
 
 
 
Net income attributable to common shareholders, as adjusted (non-GAAP)
(A+B)
$
20,233

 
$
24,814

 
$
56,381

Per diluted share (non-GAAP)
 
$
0.11

 
$
0.13

 
$
0.29


- ii -


 https://cdn.kscope.io/b2f14cb77327575929dd0b4f568858d3-vornadologoa19.jpg

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
 
 
March 31,
 
December 31,
2019
 
 
2020
 
2019
 
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)
$
4,963

 
$
181,488

 
$
193,217

Per diluted share
 
$
0.03

 
$
0.95

 
$
1.01

 
 
 
 
 
 
 
FFO adjustments:
 


 


 


Depreciation and amortization of real property
 
$
85,136

 
$
108,483

 
$
85,609

Net losses on sale of real estate
 

 

 
58

Real estate impairment losses
 

 

 
565

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

 
(62,395
)
 

Decrease (increase) in fair value of marketable securities:
 
 
 
 
 
 
PREIT (accounted for as a marketable security from March 12, 2019 and sold on January 23, 2020)
 
4,938

 
15,649

 
2,438

Lexington (sold on March 1, 2019)
 

 
(16,068
)
 

Other
 

 
(42
)
 

Proportionate share of adjustments to equity in net income of partially owned entities to arrive at FFO:
 
 
 
 
 
 
Depreciation and amortization of real property
 
40,423

 
24,990

 
37,389

Decrease (increase) in fair value of marketable securities
 
3,691

 
(12
)
 
864

 
 
134,188

 
70,605

 
126,923

Noncontrolling interests' share of above adjustments
 
(8,804
)
 
(4,424
)
 
(8,278
)
FFO adjustments, net
(B)
$
125,384

 
$
66,181

 
$
118,645

 
 
 
 
 
 
 
FFO attributable to common shareholders (non-GAAP)
(A+B)
$
130,347

 
$
247,669

 
$
311,862

Convertible preferred share dividends
 
13

 
15

 
14

FFO attributable to common shareholders plus assumed conversions (non-GAAP)
 
130,360

 
247,684

 
311,876

Add back of FFO allocated to noncontrolling interests of the Operating Partnership
 
8,459

 
16,013

 
20,153

FFO - OP Basis (non-GAAP)
 
$
138,819

 
$
263,697

 
$
332,029

FFO per diluted share (non-GAAP)
 
$
0.68

 
$
1.30

 
$
1.63


- iii -


 https://cdn.kscope.io/b2f14cb77327575929dd0b4f568858d3-vornadologoa19.jpg

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
 
 
March 31,
 
December 31,
2019
 
 
2020
 
2019
 
FFO attributable to common shareholders plus assumed conversions (non-GAAP)
(A)
$
130,360

 
$
247,684

 
$
311,876

Per diluted share (non-GAAP)
 
$
0.68

 
$
1.30

 
$
1.63

 
 
 
 
 
 
 
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
 
$
(59,911
)
 
$
(130,954
)
 
$
(173,655
)
Our share of loss from real estate fund investments
 
56,158

 
2,904

 
26,600

Credit losses on loans receivable resulting from a new GAAP accounting standard effective January 1, 2020
 
7,261

 

 

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

 
22,540

 

Other
 
4,205

 
1,206

 
(3,187
)
 
 
7,713

 
(104,304
)
 
(150,242
)
Noncontrolling interests' share of above adjustments
 
(506
)
 
6,559

 
9,396

Total of certain expense (income) items that impact FFO attributable to common shareholders plus assumed conversions, net
(B)
$
7,207

 
$
(97,745
)
 
$
(140,846
)
Per diluted share (non-GAAP)
 
$
0.04

 
$
(0.51
)
 
$
(0.74
)
 
 
 
 
 
 
 
FFO attributable to common shareholders plus assumed conversions, as adjusted (non-GAAP)
(A+B)
$
137,567

 
$
149,939

 
$
171,030

Per diluted share (non-GAAP)
 
$
0.72

 
$
0.79

 
$
0.89



- iv -


 https://cdn.kscope.io/b2f14cb77327575929dd0b4f568858d3-vornadologoa19.jpg

NON-GAAP RECONCILIATIONS
RECONCILIATION OF FFO ATTRIBUTABLE TO COMMON SHAREHOLDERS PLUS ASSUMED CONVERSIONS TO FAD (unaudited)
(Amounts in thousands)
 
 
 
 
 
 
 
 
 
For the Three Months Ended
 
 
March 31,
 
December 31,
2019
 
 
2020
 
2019
 
FFO attributable to common shareholders plus assumed conversions (non-GAAP)
(A)
$
130,360

 
$
247,684

 
$
311,876

 
 
 
 
 
 
 
Adjustments to arrive at FAD (non-GAAP):
 
 
 
 
 
 
Certain items that impact FAD
 
5,630

 
(105,477
)
 
(149,907
)
Recurring tenant improvements, leasing commissions and other capital expenditures
 
(53,479
)
 
(41,121
)
 
(45,937
)
Stock-based compensation expense
 
25,765

 
31,654

 
5,863

Amortization of debt issuance costs
 
5,276

 
10,825

 
6,767

Non-cash adjustments for straight-line rents, amortization of acquired below-market leases, net and other
 
3,076

 
(5,181
)
 
(6,590
)
Personal property depreciation
 
1,825

 
1,513

 
1,986

Noncontrolling interests in the Operating Partnership's share of above adjustments
 
781

 
6,769

 
12,246

FAD adjustments, net(1)
(B)
(11,126
)
 
(101,018
)
 
(175,572
)
 
 
 
 
 
 
 
FAD (non-GAAP)
(A+B)
$
119,234


$
146,666


$
136,304

 
 
 
 
 
 
 
FAD payout ratio (2)
 
106.5
%
 
85.7
%
 
93.0
%
________________________________
(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.

- v -


 https://cdn.kscope.io/b2f14cb77327575929dd0b4f568858d3-vornadologoa19.jpg

NON-GAAP RECONCILIATIONS
RECONCILIATION OF NET (LOSS) INCOME TO NET OPERATING INCOME AT SHARE AND NET OPERATING INCOME AT SHARE - CASH BASIS (unaudited)
(Amounts in thousands)
 
For the Three Months Ended
 
March 31,
 
December 31, 2019
 
2020
 
2019
 
Net (loss) income
$
(104,503
)
 
$
213,044

 
$
160,676

Depreciation and amortization expense
92,793

 
116,709

 
92,926

General and administrative expense
52,834

 
58,020

 
39,791

Transaction related costs and other
71

 
149

 
3,223

Income from partially owned entities
(19,103
)
 
(7,320
)
 
(22,726
)
Loss from real estate fund investments
183,463

 
167

 
90,302

Interest and other investment loss (income), net
5,904

 
(5,045
)
 
(5,889
)
Interest and debt expense
58,842

 
102,463

 
59,683

Net gains on disposition of wholly owned and partially owned assets
(68,589
)
 
(220,294
)
 
(203,835
)
Income tax expense
12,813

 
29,743

 
22,897

Loss (income) from discontinued operations

 
137

 
(55
)
NOI from partially owned entities
81,881

 
67,402

 
85,990

NOI attributable to noncontrolling interests in consolidated subsidiaries
(15,493
)
 
(17,403
)
 
(17,417
)
NOI at share
280,913

 
337,772

 
305,566

Non cash adjustments for straight-line rents, amortization of acquired below-market leases, net and other
3,076

 
(5,181
)
 
(6,590
)
NOI at share - cash basis
$
283,989

 
$
332,591

 
$
298,976




- vi -


 https://cdn.kscope.io/b2f14cb77327575929dd0b4f568858d3-vornadologoa19.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 March 31,
 
Total Revenues
 
Operating Expenses
 
NOI
 
Non-cash Adjustments(1)
 
NOI - cash basis
 
2020
 
2019
 
2020
 
2019
 
2020
 
2019
 
2020
 
2019
 
2020
 
2019
New York
$
355,615

 
$
443,285

 
$
(183,031
)
 
$
(198,095
)
 
$
172,584

 
$
245,190

 
$
5,423

 
$
(5,083
)
 
$
178,007

 
$
240,107

Other
88,917

 
91,383

 
(46,976
)
 
(48,800
)
 
41,941

 
42,583

 
1,965

 
1,907

 
43,906

 
44,490

Consolidated total
444,532

 
534,668

 
(230,007
)
 
(246,895
)
 
214,525

 
287,773

 
7,388

 
(3,176
)
 
221,913

 
284,597

Noncontrolling interests' share in consolidated subsidiaries
(26,909
)
 
(28,232
)
 
11,416

 
10,829

 
(15,493
)
 
(17,403
)
 
197

 
(60
)
 
(15,296
)
 
(17,463
)
Our share of partially owned entities
124,101

 
107,515

 
(42,220
)
 
(40,113
)
 
81,881

 
67,402

 
(4,509
)
 
(1,945
)
 
77,372

 
65,457

Vornado's share
$
541,724

 
$
613,951

 
$
(260,811
)
 
$
(276,179
)
 
$
280,913

 
$
337,772

 
$
3,076

 
$
(5,181
)
 
$
283,989

 
$
332,591


 
For the Three Months Ended December 31, 2019
 
Total Revenues
 
Operating Expenses
 
NOI
 
Non-cash Adjustments(1)
 
NOI - cash basis
New York
$
377,626

 
$
(184,231
)
 
$
193,395

 
$
(3,667
)
 
$
189,728

Other
83,342

 
(39,744
)
 
43,598

 
1,949

 
45,547

Consolidated total
460,968

 
(223,975
)
 
236,993

 
(1,718
)
 
235,275

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

 
(17,417
)
 
605

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

 
(45,046
)
 
85,990

 
(5,477
)
 
80,513

Vornado's share
$
562,094

 
$
(256,528
)
 
$
305,566

 
$
(6,590
)
 
$
298,976

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

- vii -


 https://cdn.kscope.io/b2f14cb77327575929dd0b4f568858d3-vornadologoa19.jpg

NON-GAAP RECONCILIATIONS
RECONCILIATION OF NOI AT SHARE TO SAME STORE NOI AT SHARE FOR THE THREE MONTHS ENDED MARCH 31, 2020 COMPARED TO MARCH 31, 2019 (unaudited)
(Amounts in thousands)
 
 
 
 
 
 
 
 
 
 
 
 
 
Total
 
New York
 
theMART
 
555 California Street
 
Other
NOI at share for the three months ended March 31, 2020
$
280,913

 
$
242,559

 
$
21,113

 
$
15,231

 
$
2,010

Less NOI at share from:
 
 
 
 
 
 
 
 
 
Acquisitions
(369
)
 
(369
)
 

 

 

Development properties
(14,266
)
 
(14,266
)
 

 

 

Other non-same store (income) expense, net
(7,791
)
 
(5,520
)
 
(422
)
 
161

 
(2,010
)
Same store NOI at share for the three months ended March 31, 2020
$
258,487

 
$
222,404

 
$
20,691

 
$
15,392

 
$

 
 
 
 
 
 
 
 
 
 
NOI at share for the three months ended March 31, 2019
$
337,772

 
$
283,358

 
$
23,523

 
$
14,501

 
$
16,390

Less NOI at share from:
 
 
 
 
 
 
 
 
 
Change in ownership interests in properties contributed to Fifth Avenue and Times Square JV
(30,292
)
 
(30,292
)
 

 

 

Dispositions
(3,399
)
 
(3,399
)
 

 

 

Development properties
(20,593
)
 
(20,593
)
 

 

 

Other non-same store (income) expense, net
(18,378
)
 
(2,405
)
 
339

 
78

 
(16,390
)
Same store NOI at share for the three months ended March 31, 2019
$
265,110

 
$
226,669

 
$
23,862

 
$
14,579

 
$

 
 
 
 
 
 
 
 
 
 
(Decrease) increase in same store NOI at share for the three months ended March 31, 2020 compared to March 31, 2019
$
(6,623
)
 
$
(4,265
)
 
$
(3,171
)
 
$
813

 
$

 
 
 
 
 
 
 
 
 
 
% (decrease) increase in same store NOI at share
(2.5
)%
 
(1.9
)%
(1) 
(13.3
)%
(2) 
5.6
%
 
%
________________________________
(1)
As a result of the COVID-19 pandemic, we have temporarily closed the Hotel Pennsylvania. Excluding the Hotel Pennsylvania, same store NOI at share decreased by 0.3%.
(2)
The decrease is primarily due to the cancellation of trade shows resulting from the COVID-19 pandemic. Excluding trade shows, same store NOI at share increased by 1.1%.

- viii -


 https://cdn.kscope.io/b2f14cb77327575929dd0b4f568858d3-vornadologoa19.jpg

NON-GAAP RECONCILIATIONS
RECONCILIATION OF NOI AT SHARE TO SAME STORE NOI AT SHARE FOR THE THREE MONTHS ENDED MARCH 31, 2020 COMPARED TO DECEMBER 31, 2019 (unaudited)
(Amounts in thousands)
 
 
 
 
 
 
 
 
 
 
 
 
 
Total
 
New York
 
theMART
 
555 California Street
 
Other
NOI at share for the three months ended March 31, 2020
$
280,913

 
$
242,559

 
$
21,113

 
$
15,231

 
$
2,010

Less NOI at share from:
 
 
 
 
 
 
 
 
 
Acquisitions
(364
)
 
(364
)
 

 

 

Development properties
(14,271
)
 
(14,271
)
 

 

 

Other non-same store (income) expense, net
(7,477
)
 
(5,160
)
 
(422
)
 
115

 
(2,010
)
Same store NOI at share for the three months ended March 31, 2020
$
258,801

 
$
222,764

 
$
20,691

 
$
15,346

 
$

 
 
 
 
 
 
 
 
 
 
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
)
 

 

 

Development properties
(15,894
)
 
(15,894
)
 

 

 

Other non-same store (income) expense, net
(7,665
)
 
(5,530
)
 
(172
)
 
74

 
(2,037
)
Same store NOI at share for the three months ended December 31, 2019
$
281,889

 
$
244,742

 
$
22,540

 
$
14,607

 
$

 
 
 
 
 
 
 
 
 
 
(Decrease) increase in same store NOI at share for the three months ended March 31, 2020 compared to December 31, 2019
$
(23,088
)
 
$
(21,978
)
 
$
(1,849
)
 
$
739

 
$

 
 
 
 
 
 
 
 
 
 
% (decrease) increase in same store NOI at share
(8.2
)%
 
(9.0
)%
(1) 
(8.2
)%
(2) 
5.1
%
 
%
________________________________
(1)
As a result of the COVID-19 pandemic, we have temporarily closed the Hotel Pennsylvania. Excluding the Hotel Pennsylvania, same store NOI at share decreased by 2.7%.
(2)
The decrease is primarily due to the cancellation of trade shows resulting from the COVID-19 pandemic. Excluding trade shows, same store NOI at share decreased by 2.8%.


- ix -


 https://cdn.kscope.io/b2f14cb77327575929dd0b4f568858d3-vornadologoa19.jpg

NON-GAAP RECONCILIATIONS
RECONCILIATION OF NOI AT SHARE - CASH BASIS TO SAME STORE NOI AT SHARE - CASH BASIS FOR THE THREE MONTHS ENDED MARCH 31, 2020 COMPARED TO MARCH 31, 2019 (unaudited)
(Amounts in thousands)
 
 
 
 
 
 
 
 
 
 
 
 
 
Total
 
New York
 
theMART
 
555 California Street
 
Other
NOI at share - cash basis for the three months ended March 31, 2020
$
283,989

 
$
243,665

 
$
22,705

 
$
15,435

 
$
2,184

Less NOI at share - cash basis from:
 
 
 
 
 
 
 
 
 
Acquisitions
(348
)
 
(348
)
 

 

 

Development properties
(18,117
)
 
(18,117
)
 

 

 

Other non-same store income, net
(12,607
)
 
(9,944
)
 
(422
)
 
(57
)
 
(2,184
)
Same store NOI at share - cash basis for the three months ended March 31, 2020
$
252,917

 
$
215,256

 
$
22,283

 
$
15,378

 
$

 
 
 
 
 
 
 
 
 
 
NOI at share - cash basis for the three months ended March 31, 2019
$
332,591

 
$
276,740

 
$
24,912

 
$
14,745

 
$
16,194

Less NOI at share - cash basis from:
 
 
 
 
 
 
 
 
 
Change in ownership interests in properties contributed to Fifth Avenue and Times Square JV
(27,722
)
 
(27,722
)
 

 

 

Dispositions
(3,581
)
 
(3,581
)
 

 

 

Development properties
(24,339
)
 
(24,339
)
 

 

 

Other non-same store (income) expense, net
(20,163
)
 
(4,386
)
 
339

 
78

 
(16,194
)
Same store NOI at share - cash basis for the three months ended March 31, 2019
$
256,786

 
$
216,712

 
$
25,251

 
$
14,823

 
$

 
 
 
 
 
 
 
 
 
 
(Decrease) increase in same store NOI at share - cash basis for the three months ended March 31, 2020 compared to March 31, 2019
$
(3,869
)
 
$
(1,456
)
 
$
(2,968
)
 
$
555

 
$

 
 
 
 
 
 
 
 
 
 
% (decrease) increase in same store NOI at share - cash basis
(1.5
)%
 
(0.7
)%
(1) 
(11.8
)%
(2) 
3.7
%
 
%
________________________________
(1)
As a result of the COVID-19 pandemic, we have temporarily closed the Hotel Pennsylvania. Excluding the Hotel Pennsylvania, same store NOI at share - cash basis increased by 0.9%.
(2)
The decrease is primarily due to the cancellation of trade shows resulting from the COVID-19 pandemic. Excluding trade shows, same store NOI at share - cash basis increased by 2.0%.

- x -


 https://cdn.kscope.io/b2f14cb77327575929dd0b4f568858d3-vornadologoa19.jpg

NON-GAAP RECONCILIATIONS
RECONCILIATION OF NOI AT SHARE - CASH BASIS TO SAME STORE NOI AT SHARE - CASH BASIS FOR THE THREE MONTHS ENDED MARCH 31, 2020 COMPARED TO DECEMBER 31, 2019 (unaudited)
(Amounts in thousands)
 
 
 
 
 
 
 
 
 
 
 
 
 
Total
 
New York
 
theMART
 
555 California Street
 
Other
NOI at share - cash basis for the three months ended March 31, 2020
$
283,989

 
$
243,665

 
$
22,705

 
$
15,435

 
$
2,184

Less NOI at share - cash basis from:
 
 
 
 
 
 
 
 
 
Acquisitions
(343
)
 
(343
)
 

 

 

Development properties
(18,122
)
 
(18,122
)
 

 

 

Other non-same store income, net
(12,293
)
 
(9,584
)
 
(422
)
 
(103
)
 
(2,184
)
Same store NOI at share - cash basis for the three months ended March 31, 2020
$
253,231

 
$
215,616

 
$
22,283

 
$
15,332

 
$

 
 
 
 
 
 
 
 
 
 
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
)
 

 

 

Development properties
(17,310
)
 
(17,310
)
 

 

 

Other non-same store income, net
(9,244
)
 
(6,940
)
 
(172
)
 

 
(2,132
)
Same store NOI at share - cash basis for the three months ended December 31, 2019
$
272,373

 
$
233,408

 
$
24,474

 
$
14,491

 
$

 
 
 
 
 
 
 
 
 
 
(Decrease) increase in same store NOI at share - cash basis for the three months ended March 31, 2020 compared to December 31, 2019
$
(19,142
)
 
$
(17,792
)
 
$
(2,191
)
 
$
841

 
$

 
 
 
 
 
 
 
 
 
 
% (decrease) increase in same store NOI at share - cash basis
(7.0
)%
 
(7.6
)%
(1) 
(9.0
)%
(2) 
5.8
%
 
%
________________________________
(1)
As a result of the COVID-19 pandemic, we have temporarily closed the Hotel Pennsylvania. Excluding the Hotel Pennsylvania, same store NOI at share - cash basis decreased by 1.0%.
(2)
The decrease is primarily due to the cancellation of trade shows resulting from the COVID-19 pandemic. Excluding trade shows, same store NOI at share - cash basis decreased by 4.0%.

- xi -


 https://cdn.kscope.io/b2f14cb77327575929dd0b4f568858d3-vornadologoa19.jpg

NON-GAAP RECONCILIATIONS
RECONCILIATION OF CONSOLIDATED REVENUES TO OUR PRO RATA SHARE OF REVENUES (ANNUALIZED) (unaudited)
(Amounts in thousands)
 
 
 
For the
Three Months Ended
March 31, 2020
Consolidated revenues
$
444,532

Noncontrolling interest adjustments
(26,909
)
Consolidated revenues at our share (non-GAAP)
417,623

Unconsolidated revenues at our share (non-GAAP)
124,101

Our pro rata share of revenues (non-GAAP)
$
541,724

Our pro rata share of revenues (annualized) (non-GAAP)
$
2,166,896



RECONCILIATION OF CONSOLIDATED DEBT, NET TO CONTRACTUAL DEBT (NON-GAAP) (unaudited)
(Amounts in thousands)
 
 
 
 
 
 
 
As of March 31, 2020
 
Consolidated
Debt, net
 
Deferred Financing
Costs, Net and Other
 
Contractual
Debt (non-GAAP)
Mortgages payable
$
5,643,707

 
$
27,221

 
$
5,670,928

Senior unsecured notes
446,076

 
3,924

 
450,000

$800 Million unsecured term loan
795,974

 
4,026

 
800,000

$2.75 Billion unsecured revolving credit facilities
1,075,000

 

 
1,075,000

 
$
7,960,757

 
$
35,171

 
$
7,995,928


- xii -


 https://cdn.kscope.io/b2f14cb77327575929dd0b4f568858d3-vornadologoa19.jpg

NON-GAAP RECONCILIATIONS
RECONCILIATION OF NET (LOSS) 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
 
March 31,
 
December 31,
2019
 
2020
 
2019
 
Reconciliation of net (loss) income to EBITDAre (non-GAAP):
 
 
 
 
 
Net (loss) income
$
(104,503
)
 
$
213,044

 
$
160,676

Less net loss (income) attributable to noncontrolling interests in consolidated subsidiaries
122,387

 
(6,820
)
 
58,592

Net income attributable to the Operating Partnership
17,884

 
206,224

 
219,268

EBITDAre adjustments at share:
 
 
 
 
 
Depreciation and amortization expense
127,384

 
134,986

 
124,984

Interest and debt expense
81,816

 
128,068

 
86,832

Real estate impairment losses

 

 
565

Income tax expense
12,892

 
29,924

 
22,975

Net losses on sales of depreciable real estate

 

 
58

EBITDAre at share
239,976

 
499,202

 
454,682

EBITDAre attributable to noncontrolling interests in consolidated subsidiaries
(111,737
)
 
19,809

 
(52,531
)
EBITDAre (non-GAAP)
$
128,239

 
$
519,011

 
$
402,151



- xiii -


 https://cdn.kscope.io/b2f14cb77327575929dd0b4f568858d3-vornadologoa19.jpg

NON-GAAP RECONCILIATIONS
RECONCILIATION OF EBITDAre TO EBITDAre, AS ADJUSTED (unaudited)
(Amounts in thousands)
 
 
For the Three Months Ended
 
March 31,
 
December 31,
2019
 
2020
 
2019
 
EBITDAre (non-GAAP)
$
128,239

 
$
519,011

 
$
402,151

 
 
 
 
 
 
EBITDAre attributable to noncontrolling interests in consolidated subsidiaries
111,737

 
(19,809
)
 
52,531

 
 
 
 
 
 
Certain (income) expense items that impact EBITDAre:
 
 
 
 
 
Gain on sale of 220 CPS condominium units
(68,589
)
 
(157,899
)
 
(203,893
)
Our share of loss from real estate fund investments
56,158

 
2,904

 
26,600

Credit losses on loans receivable resulting from a new GAAP accounting standard effective January 1, 2020
7,261

 

 

Mark-to-market decrease in PREIT common shares (accounted for as a marketable security from March 12, 2019 and sold on January 23, 2020)
4,938

 
15,649

 
2,438

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

 
(62,395
)
 

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

 
(16,068
)
 

Other
7,662

 
23

 
4,146

Total of certain expense (income) items that impact EBITDAre
7,430

 
(217,786
)
 
(170,709
)
 
 
 
 
 
 
EBITDAre, as adjusted (non-GAAP)
$
247,406

 
$
281,416

 
$
283,973



- xiv -



https://cdn.kscope.io/b2f14cb77327575929dd0b4f568858d3-supplementalcoversoptions08.jpg