Vornado Announces First Quarter 2024 Financial Results

Rhea-AI Summary

Vornado Realty Trust (NYSE: VNO) reported a net loss attributable to common shareholders for the quarter ended March 31, 2024. Funds from Operations (FFO) saw a decrease compared to the previous year. The company engaged in financing activities and entered into interest rate swap arrangements. Dispositions and leasing activities were highlighted, along with occupancy rates and NOI figures. Active development projects were also discussed.

Insights

Real Estate Financial Analyst

The reported net loss of $9,034,000 by Vornado Realty Trust signifies a shift from the previous year's net income, potentially reflecting increased challenges in the real estate market or specific difficulties within the company's operations. The Funds From Operations (FFO), an important metric in real estate that provides an alternative measure of a REIT's performance to net income, also showed a decline at $104,129,000 compared to the prior year. This could suggest a downward pressure on the company's earnings and the performance of its property portfolio.

On a positive note, adjustments for non-recurring items yield an FFO as adjusted of $108,847,000, which, while lower than the previous year, may indicate underlying resilience. The leasing activity reveals a mixed picture, with varied performance across different segments and regions. Notably, the San Francisco office space reflects a significant negative change in both GAAP and cash mark-to-market rent, raising concerns about regional market conditions.

The company's strategic financial activities, including refinancing efforts and the extension of credit facilities, aim to optimize its capital structure. The interest rate swaps and caps are indicative of a proactive approach to managing interest rate risk. Investors should monitor how these financial maneuvers affect the company's liquidity and cost of capital in the future.

Real Estate Market Analyst

The disclosed leasing activity and occupancy rates provide insight into the company's market position and operational effectiveness. An occupancy rate of 88.2% for New York Office and 89.3% for THE MART appears robust, yet the 75.0% occupancy for 555 California Street could signal market-specific challenges or asset performance issues. The lease extension with Bloomberg L.P. at 731 Lexington Avenue through February 2040 is a significant development, securing long-term revenue stability from a major tenant.

Regional disparities in mark-to-market rent changes, particularly the negative figures in San Francisco, may reflect market saturation or an unfavorable competitive environment. The same store NOI at share indicates a decrease of 4.8%, raising questions about the company's ability to sustain and grow rental revenue streams. This figure, alongside cash basis NOI, which also decreased, is critical as it serves as a proxy for cash flow generated from property operations.

The presence of active development projects, such as the PENN District improvements, introduces potential for future value creation but also carries execution risk. The incremental cash yield forecasts for these projects are attractive and should be watched as they progress towards stabilization.

NEW YORK, May 06, 2024 (GLOBE NEWSWIRE) -- Vornado Realty Trust (NYSE: VNO) reported today:

Quarter Ended March 31, 2024 Financial Results

NET LOSS attributable to common shareholders for the quarter ended March 31, 2024 was $9,034,000, or $0.05 per diluted share, compared to net income attributable to common shareholders of $5,168,000, or $0.03 per diluted share, for the prior year's quarter.

FUNDS FROM OPERATIONS ("FFO") attributable to common shareholders plus assumed conversions (non-GAAP) for the quarter ended March 31, 2024 was $104,129,000, or $0.53 per diluted share, compared to $119,083,000, or $0.61 per diluted share, for the prior year's quarter. Adjusting for the items that impact period-to-period comparability listed in the table below, FFO attributable to common shareholders plus assumed conversions, as adjusted (non-GAAP) for the quarter ended March 31, 2024 was $108,847,000, or $0.55 per diluted share, and $116,288,000, or $0.60 per diluted share, for the prior year's quarter.

The following table reconciles 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,
		2024				2023
FFO attributable to common shareholders plus assumed conversions (non-GAAP)(1)	$	104,129			$	119,083
Per diluted share (non-GAAP)	$	0.53			$	0.61
Certain expense (income) items that impact FFO attributable to common shareholders plus assumed conversions:
Deferred tax liability on our investment in the Farley Building (held through a taxable REIT subsidiary)	$	4,134			$	2,875
After-tax net gain on sale of 220 Central Park South ("220 CPS") condominium units and ancillary amenities		—				(6,173	)
Other		1,009				288
		5,143				(3,010	)
Noncontrolling interests' share of above adjustments		(425	)			215
Total of certain expense (income) items that impact FFO attributable to common shareholders plus assumed conversions, net	$	4,718			$	(2,795	)
Per diluted share (non-GAAP)	$	0.02			$	(0.01	)
FFO attributable to common shareholders plus assumed conversions, as adjusted (non-GAAP)	$	108,847			$	116,288
Per diluted share (non-GAAP)	$	0.55			$	0.60

________________________________

(1)	See page 9 for a reconciliation of net (loss) income attributable to common shareholders to FFO attributable to common shareholders plus assumed conversions (non-GAAP) for the three months ended March 31, 2024 and 2023.

FFO, as Adjusted Bridge - Q1 2024 vs. Q1 2023

The following table bridges our FFO attributable to common shareholders plus assumed conversions, as adjusted (non-GAAP) for the three months ended March 31, 2023 to FFO attributable to common shareholders plus assumed conversions, as adjusted (non-GAAP) for the three months ended March 31, 2024:

(Amounts in millions, except per share amounts)	FFO, as Adjusted
	Amount				Per Share
FFO attributable to common shareholders plus assumed conversions, as adjusted (non-GAAP) for the three months March 31, 2023	$	116.3			$	0.60
(Decrease) increase in FFO, as adjusted due to:
Lease expirations, rent commencement, and other tenant related items		(4.5	)
Change in interest expense, net of interest income		(3.9	)
Reduced general and administrative expense (primarily stock compensation)		3.6
Other, net		(1.9	)
		(6.7	)
Noncontrolling interests' share of above items and impact of assumed conversions of convertible securities		(0.8	)
Net decrease		(7.5	)			(0.05	)
FFO attributable to common shareholders plus assumed conversions, as adjusted (non-GAAP) for the three months ended March 31, 2024	$	108.8			$	0.55

See page 9 for a reconciliation of net (loss) income attributable to common shareholders to FFO attributable to common shareholders plus assumed conversions (non-GAAP) for the three months ended March 31, 2024 and 2023. Reconciliations of FFO attributable to common shareholders plus assumed conversions to FFO attributable to common shareholders plus assumed conversions, as adjusted are provided on the previous page.

Financing Activity

280 Park Avenue

On April 4, 2024, a joint venture, in which we have a 50% interest, amended and extended the $1,075,000,000 mortgage loan on 280 Park Avenue. The maturity date on the amended loan was extended to September 2026, with options to fully extend to September 2028, subject to certain conditions. The interest rate on the amended loan remains at SOFR plus 1.78%. Additionally, on April 4, 2024, the joint venture amended and extended the $125,000,000 mezzanine loan, and subsequently repaid the loan for $62,500,000.

435 Seventh Avenue

On April 9, 2024, we completed a $75,000,000 refinancing of 435 Seventh Avenue, of which $37,500,000 is recourse to the Operating Partnership. The interest-only loan bears a rate of SOFR plus 2.10% and matures in April 2028. The interest rate on the loan was swapped to a fixed rate of 6.96% through April 2026. The loan replaces the previous $95,696,000 fully recourse loan, which bore interest at SOFR plus 1.41%.

Unsecured Revolving Credit Facility

On May 3, 2024, we extended one of our two unsecured revolving credit facilities to April 2029 (as fully extended). The new $915,000,000 facility replaces the existing $1.25 billion facility that was due to mature in April 2026. The new facility currently bears interest at a rate of SOFR plus 1.20% with a facility fee of 25 basis points. Our $1.25 billion revolving credit facility matures in December 2027 (as fully extended) and has an interest rate of SOFR plus 1.14% and a facility fee of 25 basis points.

Interest Rate Swap and Cap Arrangements

We entered into the following interest rate swap and cap arrangements during the three months ended March 31, 2024:

(Amounts in thousands)		Notional Amount (at share)			All-In Swapped Rate		Expiration Date		Variable Rate Spread
Interest rate swaps:
PENN 11(1)		$	250,000		6.21%		10/25		S+206
					Index Strike Rate
Interest rate caps:
61 Ninth Avenue (45.1% interest)		$	75,543		4.39%		01/26		S+146

________________________________

(1)	Together with the existing $250,000 swap arrangement on the $500,000 PENN 11 mortgage loan, the loan will bear interest at an all-in swapped rate of 6.28% through October 2025.

Dispositions

On April 12, 2024, we closed on the sale of two condominium units at 220 CPS for net proceeds of $31,605,000; four units remain unsold.

Alexander’s

On May 3, 2024, Alexander’s, Inc. (“Alexander’s”), in which we own a 32.4% common equity interest, and Bloomberg L.P. reached an agreement to extend the leases covering approximately 947,000 square feet at 731 Lexington Avenue that were scheduled to expire in February 2029 for a term of eleven years to February 2040.

Leasing Activity

The leasing activity and related statistics 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.

For the Three Months Ended March 31, 2024:

• 291,000 square feet of New York Office space (250,000 square feet at share) at an initial rent of $89.23 per square foot and a weighted average lease term of 11.1 years. The changes in the GAAP and cash mark-to-market rent on the 95,000 square feet of second generation space were positive 2.8% and positive 2.4%, respectively. Tenant improvements and leasing commissions were $12.98 per square foot per annum, or 14.5% of initial rent.
• 36,000 square feet of New York Retail space (33,000 square feet at share) at an initial rent of $253.83 per square foot and a weighted average lease term of 3.8 years. The changes in the GAAP and cash mark-to-market rent on the 27,000 square feet of second generation space were positive 4.4% and negative 18.1%, respectively. Tenant improvements and leasing commissions were $29.16 per square foot per annum, or 11.5% of initial rent.
• 51,000 square feet at THE MART (all at share) at an initial rent of $64.02 per square foot and a weighted average lease term of 4.5 years. The changes in the GAAP and cash mark-to-market rent on the 43,000 square feet of second generation space were positive 6.4% and negative 0.1%, respectively. Tenant improvements and leasing commissions were $8.37 per square foot per annum, or 13.1% of initial rent.
• 41,000 square feet at 315 Montgomery Street in San Francisco (29,000 square feet at share) at an initial rent of $67.57 per square foot and a weighted average lease term of 5.4 years. The changes in the GAAP and cash mark-to-market rent on the 29,000 square feet of second generation space were negative 25.3% and negative 30.1%, respectively. Tenant improvements and leasing commissions were $4.01 per square foot per annum, or 5.9% of initial rent.

Occupancy

(At Vornado's share)	New York									THE MART			555 California Street
	Total			Office			Retail
Occupancy as of March 31, 2024	88.2	%		89.3	%		75.0	%		77.6	%		94.5	%

Same Store Net Operating Income ("NOI") At Share:

	Total		New York		THE MART		555 California Street
Same store NOI at share % decrease(1):
Three months ended March 31, 2024 compared to March 31, 2023	(4.8)%		(4.6)%		(10.0)%		(2.4)%
Three months ended March 31, 2024 compared to December 31, 2023	(6.5)%		(6.7)%		(0.3)%		(8.8)%
Same store NOI at share - cash basis % decrease(1):
Three months ended March 31, 2024 compared to March 31, 2023	(5.0)%		(5.1)%		(3.3)%		(4.4)%
Three months ended March 31, 2024 compared to December 31, 2023	(6.3)%		(6.4)%		(3.7)%		(7.3)%

____________________

(1)	See pages 11 through 14 for same store NOI at share and same store NOI at share - cash basis reconciliations.

NOI At Share & NOI At Share - Cash Basis:

The elements of our New York and Other NOI at share and NOI at share - cash basis for the three months ended March 31, 2024 and 2023 and the three months ended December 31, 2023 are summarized below.

(Amounts in thousands)	For the Three Months Ended
	March 31,						December 31, 2023
		2024			2023
NOI at share:
New York:
Office(1)	$	167,988		$	174,270		$	182,769
Retail		47,466			47,196			47,378
Residential		5,968			5,458			5,415
Alexander's		11,707			9,070			12,013
Total New York		233,129			235,994			247,575
Other:
THE MART		14,486			15,409			14,516
555 California Street		16,529			16,929			18,125
Other investments		4,980			5,151			6,880
Total Other		35,995			37,489			39,521
NOI at share	$	269,124		$	273,483		$	287,096

NOI at share - cash basis:
New York:
Office(1)	$	166,370		$	182,081		$	183,742
Retail		43,873			44,034			46,491
Residential		5,690			5,051			5,137
Alexander's		14,861			9,861			11,059
Total New York		230,794			241,027			246,429
Other:
THE MART		14,949			14,675			15,511
555 California Street		16,938			17,718			18,265
Other investments		4,932			5,115			7,012
Total Other		36,819			37,508			40,788
NOI at share - cash basis	$	267,613		$	278,535		$	287,217

________________________________

(1)	Includes Building Maintenance Services NOI of $7,217, $6,289 and $6,424, respectively, for the three months ended March 31, 2024 and 2023 and December 31, 2023.

Active Development/Redevelopment Summary as of March 31, 2024:

(Amounts in thousands, except square feet)
				(at Vornado’s share)											Projected Incremental Cash Yield
New York segment:		Property Rentable Sq. Ft.		Budget			Cash Amount Expended			Remaining Expenditures			Stabilization Year
PENN District:
PENN 2		1,795,000		$	750,000		$	659,108		$	90,892		2026			9.5%
Districtwide Improvements		N/A			100,000			52,785			47,215		N/A			N/A
Total PENN District					850,000	(1)		711,893			138,107
Sunset Pier 94 Studios (49.9% interest)		266,000			125,000	(2)		7,994			117,006		2026			10.3%
Total Active Development Projects				$	975,000		$	719,887		$	255,113

________________________________

(1)	Excluding debt and equity carry.
(2)	Represents our 49.9% share of the $350,000 development budget, excluding the $40,000 value of our contributed leasehold interest and net of an estimated $9,000 for our share of development fees and reimbursement for overhead costs incurred by us. $34,000 will be funded via cash contributions, of which $7,994 has been funded as of March 31, 2024.

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 7, 2024 at 10:00 a.m. Eastern Time (ET). The conference call can be accessed by dialing 888-317-6003 (domestic) or 412-317-6061 (international) and entering the passcode 5722274. A live webcast of the conference call will be available on Vornado’s website at www.vno.com in the Investor Relations section and an online playback of the webcast will be available on the website following the conference call.

Contact

Thomas J. Sanelli

(212) 894-7000

Supplemental Data

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. 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 press release. 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; estimates of future capital expenditures, dividends to common and preferred shareholders and operating partnership distributions. 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, 2023. Currently, some of the factors are the increased interest rates and effects of inflation on our business, financial condition, results of operations, cash flows, operating performance and the effect that these factors have had and may continue to have on our tenants, the global, national, regional and local economies and financial markets and the real estate market in general.

VORNADO REALTY TRUST CONSOLIDATED BALANCE SHEETS
(Amounts in thousands)	As of								Increase (Decrease)
	March 31, 2024				December 31, 2023
ASSETS
Real estate, at cost:
Land	$	2,436,221			$	2,436,221			$	—
Buildings and improvements		10,017,573				9,952,954				64,619
Development costs and construction in progress		1,322,810				1,281,076				41,734
Leasehold improvements and equipment		131,762				130,953				809
Total		13,908,366				13,801,204				107,162
Less accumulated depreciation and amortization		(3,837,679	)			(3,752,827	)			(84,852	)
Real estate, net		10,070,687				10,048,377				22,310
Right-of-use assets		678,951				680,044				(1,093	)
Cash, cash equivalents, and restricted cash
Cash and cash equivalents		892,652				997,002				(104,350	)
Restricted cash		256,268				264,582				(8,314	)
Total		1,148,920				1,261,584				(112,664	)
Tenant and other receivables		76,627				69,543				7,084
Investments in partially owned entities		2,599,134				2,610,558				(11,424	)
220 CPS condominium units ready for sale		36,578				35,941				637
Receivable arising from the straight-lining of rents		706,280				701,666				4,614
Deferred leasing costs, net		355,790				355,010				780
Identified intangible assets, net		124,887				127,082				(2,195	)
Other assets		409,311				297,860				111,451
Total assets	$	16,207,165			$	16,187,665			$	19,500
LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND EQUITY
Liabilities:
Mortgages payable, net	$	5,690,639			$	5,688,020			$	2,619
Senior unsecured notes, net		1,194,383				1,193,873				510
Unsecured term loan, net		794,906				794,559				347
Unsecured revolving credit facilities		575,000				575,000				—
Lease liabilities		737,500				732,859				4,641
Accounts payable and accrued expenses		388,988				411,044				(22,056	)
Deferred revenue		30,877				32,199				(1,322	)
Deferred compensation plan		108,919				105,245				3,674
Other liabilities		308,643				311,132				(2,489	)
Total liabilities		9,829,855				9,843,931				(14,076	)
Redeemable noncontrolling interests		643,142				638,448				4,694
Shareholders' equity		5,539,087				5,509,064				30,023
Noncontrolling interests in consolidated subsidiaries		195,081				196,222				(1,141	)
Total liabilities, redeemable noncontrolling interests and equity	$	16,207,165			$	16,187,665			$	19,500

VORNADO REALTY TRUST OPERATING RESULTS
(Amounts in thousands, except per share amounts)	For the Three Months Ended March 31,
		2024				2023
Revenues	$	436,375			$	445,923
Net (loss) income	$	(6,273	)		$	11,198
Less net loss (income) attributable to noncontrolling interests in:
Consolidated subsidiaries		11,982				9,928
Operating Partnership		786				(429	)
Net income attributable to Vornado		6,495				20,697
Preferred share dividends		(15,529	)			(15,529	)
Net (loss) income attributable to common shareholders	$	(9,034	)		$	5,168
(Loss) income per common share - basic:
Net (loss) income per common share	$	(0.05	)		$	0.03
Weighted average shares outstanding		190,429				191,869
(Loss) income per common share - diluted:
Net (loss) income per common share	$	(0.05	)		$	0.03
Weighted average shares outstanding		190,429				191,881
FFO attributable to common shareholders plus assumed conversions (non-GAAP)	$	104,129			$	119,083
Per diluted share (non-GAAP)	$	0.53			$	0.61
FFO attributable to common shareholders plus assumed conversions, as adjusted (non-GAAP)	$	108,847			$	116,288
Per diluted share (non-GAAP)	$	0.55			$	0.60
Weighted average shares used in determining FFO attributable to common shareholders plus assumed conversions per diluted share		196,481				194,409

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 certain real estate assets, impairment write-downs of certain real estate assets and investments in entities when the impairment is directly attributable to decreases in the value of depreciable real estate held by the entity, 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. 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 net (loss) income attributable to common shareholders to FFO attributable to common shareholders plus assumed conversions are provided on the following page. 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 1 of this press release.

VORNADO REALTY TRUST NON-GAAP RECONCILIATIONS
The following table reconciles net (loss) 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,
		2024				2023
Net (loss) income attributable to common shareholders	$	(9,034	)		$	5,168
Per diluted share	$	(0.05	)		$	0.03
FFO adjustments:
Depreciation and amortization of real property	$	96,783			$	94,792
Our share of partially owned entities:
Depreciation and amortization of real property		26,163				27,469
		122,946				122,261
Noncontrolling interests' share of above adjustments		(10,171	)			(8,746	)
FFO adjustments, net	$	112,775			$	113,515
FFO attributable to common shareholders	$	103,741			$	118,683
Impact of assumed conversion of dilutive convertible securities		388				400
FFO attributable to common shareholders plus assumed conversions	$	104,129			$	119,083
Per diluted share	$	0.53			$	0.61
Reconciliation of weighted average shares outstanding:
Weighted average common shares outstanding		190,429				191,869
Effect of dilutive securities:
Share-based payment awards		4,204				70
Convertible securities		1,848				2,470
Denominator for FFO per diluted share		196,481				194,409

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, 2024 and 2023 and the three months ended December 31, 2023.
(Amounts in thousands)	For the Three Months Ended
	March 31,								December 31, 2023
		2024				2023
Net (loss) income	$	(6,273	)		$	11,198			$	(100,613	)
Depreciation and amortization expense		108,659				106,565				110,197
General and administrative expense		37,897				41,595				46,040
Transaction related costs, impairment losses and other		653				658				49,190
(Income) loss from partially owned entities		(16,279	)			(16,666	)			33,518
Interest and other investment income, net		(11,724	)			(9,584	)			(5,833	)
Interest and debt expense		90,478				86,237				87,695
Net gains on disposition of wholly owned and partially owned assets		—				(7,520	)			(6,607	)
Income tax expense		6,740				4,667				8,374
NOI from partially owned entities		70,369				68,097				74,819
NOI attributable to noncontrolling interests in consolidated subsidiaries		(11,396	)			(11,764	)			(9,684	)
NOI at share		269,124				273,483				287,096
Non-cash adjustments for straight-line rents, amortization of acquired below-market leases, net, and other		(1,511	)			5,052				121
NOI at share - cash basis	$	267,613			$	278,535			$	287,217

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, accruals for ground rent resets yet to be determined, 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.

VORNADO REALTY TRUST
NON-GAAP RECONCILIATIONS - CONTINUED

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, accruals for ground rent resets yet to be determined, 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.

Below are reconciliations of NOI at share to same store NOI at share for our New York segment, THE MART, 555 California Street and other investments for the three months ended March 31, 2024 compared to March 31, 2023.

(Amounts in thousands)	Total				New York				THE MART				555 California Street				Other
NOI at share for the three months ended March 31, 2024	$	269,124			$	233,129			$	14,486			$	16,529			$	4,980
Less NOI at share from:
Development properties		(7,958	)			(7,958	)			—				—				—
Other non-same store income, net		(6,045	)			(1,058	)			(7	)			—				(4,980	)
Same store NOI at share for the three months ended March 31, 2024	$	255,121			$	224,113			$	14,479			$	16,529			$	—
NOI at share for the three months ended March 31, 2023	$	273,483			$	235,994			$	15,409			$	16,929			$	5,151
Less NOI at share from:
Dispositions		114				(570	)			684				—				—
Development properties		(4,331	)			(4,331	)			—				—				—
Other non-same store (income) expense, net		(1,414	)			3,737				—				—				(5,151	)
Same store NOI at share for the three months ended March 31, 2023	$	267,852			$	234,830			$	16,093			$	16,929			$	—
Decrease in same store NOI at share	$	(12,731	)		$	(10,717	)		$	(1,614	)		$	(400	)		$	—
% decrease in same store NOI at share	(4.8		)%		(4.6		)%		(10.0		)%		(2.4		)%			0.0	%

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, THE MART, 555 California Street and other investments for the three months ended March 31, 2024 compared to March 31, 2023.
(Amounts in thousands)	Total				New York				THE MART				555 California Street				Other
NOI at share - cash basis for the three months ended March 31, 2024	$	267,613			$	230,794			$	14,949			$	16,938			$	4,932
Less NOI at share - cash basis from:
Development properties		(5,970	)			(5,970	)			—				—				—
Other non-same store income, net		(6,602	)			(1,663	)			(7	)			—				(4,932	)
Same store NOI at share - cash basis for the three months ended March 31, 2024	$	255,041			$	223,161			$	14,942			$	16,938			$	—
NOI at share - cash basis for the three months ended March 31, 2023	$	278,535			$	241,027			$	14,675			$	17,718			$	5,115
Less NOI at share - cash basis from:
Dispositions		47				(728	)			775				—				—
Development properties		(4,146	)			(4,146	)			—				—				—
Other non-same store income, net		(6,069	)			(954	)			—				—				(5,115	)
Same store NOI at share - cash basis for the three months ended March 31, 2023	$	268,367			$	235,199			$	15,450			$	17,718			$	—
Decrease in same store NOI at share - cash basis	$	(13,326	)		$	(12,038	)		$	(508	)		$	(780	)		$	—
% decrease in same store NOI at share - cash basis	(5.0		)%		(5.1		)%		(3.3		)%		(4.4		)%			0.0	%

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, THE MART, 555 California Street and other investments for the three months ended March 31, 2024 compared to December 31, 2023.
(Amounts in thousands)	Total				New York				THE MART				555 California Street				Other
NOI at share for the three months ended March 31, 2024	$	269,124			$	233,129			$	14,486			$	16,529			$	4,980
Less NOI at share from:
Development properties		(7,958	)			(7,958	)			—				—				—
Other non-same store income, net		(5,685	)			(698	)			(7	)			—				(4,980	)
Same store NOI at share for the three months ended March 31, 2024	$	255,481			$	224,473			$	14,479			$	16,529			$	—
NOI at share for the three months ended December 31, 2023	$	287,096			$	247,575			$	14,516			$	18,125			$	6,880
Less NOI at share from:
Development properties		(6,833	)			(6,833	)			—				—				—
Other non-same store (income) expense, net		(7,089	)			(219	)			10				—				(6,880	)
Same store NOI at share for the three months ended December 31, 2023	$	273,174			$	240,523			$	14,526			$	18,125			$	—
Decrease in same store NOI at share	$	(17,693	)		$	(16,050	)		$	(47	)		$	(1,596	)		$	—
% decrease in same store NOI at share	(6.5		)%		(6.7		)%		(0.3		)%		(8.8		)%			0.0	%

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, THE MART, 555 California Street and other investments for the three months ended March 31, 2024 compared to December 31, 2023.
(Amounts in thousands)	Total				New York				THE MART				555 California Street				Other
NOI at share - cash basis for the three months ended March 31, 2024	$	267,613			$	230,794			$	14,949			$	16,938			$	4,932
Less NOI at share - cash basis from:
Development properties		(5,970	)			(5,970	)			—				—				—
Other non-same store income, net		(6,241	)			(1,302	)			(7	)			—				(4,932	)
Same store NOI at share - cash basis for the three months ended March 31, 2024	$	255,402			$	223,522			$	14,942			$	16,938			$	—
NOI at share - cash basis for the three months ended December 31, 2023	$	287,217			$	246,429			$	15,511			$	18,265			$	7,012
Less NOI at share - cash basis from:
Development properties		(6,011	)			(6,011	)			—				—				—
Other non-same store (income) expense, net		(8,568	)			(1,566	)			10				—				(7,012	)
Same store NOI at share - cash basis for the three months ended December 31, 2023	$	272,638			$	238,852			$	15,521			$	18,265			$	—
Decrease in same store NOI at share - cash basis	$	(17,236	)		$	(15,330	)		$	(579	)		$	(1,327	)		$	—
% decrease in same store NOI at share - cash basis	(6.3		)%		(6.4		)%		(3.7		)%		(7.3		)%			0.0	%

 

FAQ

What were Vornado Realty Trust's financial results for the quarter ended March 31, 2024?

Vornado reported a net loss attributable to common shareholders for the quarter.

How did Funds from Operations (FFO) change for Vornado compared to the previous year's quarter?

FFO saw a decrease from the prior year.

What financing activities did Vornado engage in during the period?

Vornado amended and extended mortgage loans on properties like 280 Park Avenue and 435 Seventh Avenue.

What leasing activity was highlighted by Vornado for the period?

Vornado signed leases for various spaces in New York and other locations.

What were Vornado's occupancy rates as of March 31, 2024?

Vornado reported occupancy rates for different property types.

What were Vornado's Same Store Net Operating Income (NOI) at share figures for the period?

Vornado's Same Store NOI at share showed a decrease compared to previous periods.

What were Vornado's active development projects as of March 31, 2024?

Vornado provided details on active development projects, including projected yields.

When will Vornado host their quarterly earnings conference call and webcast?

Vornado will host a conference call and webcast on Tuesday, May 7, 2024 at 10:00 a.m. Eastern Time.