Vornado Announces Fourth Quarter 2024 Financial Results

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Insights

Vornado's Q4 2024 results reveal a complex operating environment with several noteworthy developments:

Core Performance Metrics: While achieving profitability with $1.2M in Q4 net income marks an improvement from 2023's loss, the 6.5% year-over-year decline in FFO to $0.58 per share signals ongoing operational challenges. The full-year FFO decrease of 8.5% to $2.37 per share reflects broader market pressures.

Strategic Transactions: The $350M UNIQLO transaction at 666 Fifth Avenue demonstrates successful asset monetization, with an expected $76M gain in Q1 2025. The Bloomberg lease extension at 731 Lexington Avenue through 2040 provides important long-term stability.

Operational Metrics: New York portfolio occupancy at 88.8% for office and 73.7% for retail highlights ongoing leasing challenges. However, positive leasing spreads with 23.9% GAAP and 6.0% cash basis increases for office space indicate improving market conditions.

Development Pipeline: The PENN District transformation continues with $768.4M invested out of $850M budget, targeting a 10.2% projected yield. This strategic repositioning could drive significant value creation despite near-term earnings pressure.

02/10/2025 - 04:30 PM

NEW YORK, Feb. 10, 2025 (GLOBE NEWSWIRE) -- Vornado Realty Trust (NYSE: VNO) reported today:

Quarter Ended December 31, 2024 Financial Results

NET INCOME attributable to common shareholders for the quarter ended December 31, 2024 was $1,203,000, or $0.01 per diluted share, compared to a net loss attributable to common shareholders of $61,013,000, or $0.32 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 December 31, 2024 was $117,085,000, or $0.58 per diluted share, compared to $121,105,000, or $0.62 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 quarter ended December 31, 2024 was $122,212,000, or $0.61 per diluted share, and $123,751,000, or $0.63 per diluted share, for the prior year's quarter.

Year Ended December 31, 2024 Financial Results

NET INCOME attributable to common shareholders for the year ended December 31, 2024 was $8,275,000, or $0.04 per diluted share, compared to $43,378,000, or $0.23 per diluted share, for the year ended December 31, 2023.

FFO attributable to common shareholders plus assumed conversions (non-GAAP) for the year ended December 31, 2024 was $470,021,000, or $2.37 per diluted share, compared to $503,792,000, or $2.59 per diluted share, for the year ended December 31, 2023. 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 year ended December 31, 2024 was $447,071,000, or $2.26 per diluted share, and $508,151,000, or $2.61 per diluted share, for the year ended December 31, 2023.

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 December 31,						For the Year Ended December 31,
		2024			2023			2024			2023
FFO attributable to common shareholders plus assumed conversions (non-GAAP)⁽¹⁾	$	117,085		$	121,105		$	470,021		$	503,792
Per diluted share (non-GAAP)	$	0.58		$	0.62		$	2.37		$	2.59

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)	$	3,456		$	3,526		$	14,353		$	11,722
Credit losses on investments		—			8,269			—			8,269
After-tax net gain on sale of 220 Central Park South ("220 CPS") condominium units and ancillary amenities		—			(5,786	)		(13,069	)		(11,959	)
Our share of the gain on the discounted extinguishment of the 280 Park Avenue mezzanine loan		—			—			(31,215	)		—
Other		2,104			(3,169	)		5,000			(3,336	)
		5,560			2,840			(24,931	)		4,696
Noncontrolling interests' share of above adjustments on a dilutive basis		(433	)		(194	)		1,981			(337	)
Total of certain expense (income) items that impact FFO attributable to common shareholders plus assumed conversions, net	$	5,127		$	2,646		$	(22,950	)	$	4,359
Per diluted share (non-GAAP)	$	0.03		$	0.01		$	(0.11	)	$	0.02

FFO attributable to common shareholders plus assumed conversions, as adjusted (non-GAAP)	$	122,212		$	123,751		$	447,071		$	508,151
Per diluted share (non-GAAP)	$	0.61		$	0.63		$	2.26		$	2.61
________________________________

⁽¹⁾	^{See page 14 for a reconciliation of net income (loss) attributable to common shareholders to FFO attributable to common shareholders plus assumed conversions (non-GAAP) for the three months and years ended December 31, 2024 and 2023.}

FFO, as Adjusted Bridge – Q4 2024 vs. Q4 2023

The following table bridges our FFO attributable to common shareholders plus assumed conversions, as adjusted (non-GAAP) for the three months ended December 31, 2023 to FFO attributable to common shareholders plus assumed conversions, as adjusted (non-GAAP) for the three months ended December 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 ended December 31, 2023	$	123.8		$	0.63

Increase/(Decrease) in FFO, as adjusted due to:
330 West 34th Street termination and recapture fees, net of straight-line rent write-offs relating to new WeWork lease		15.1
Lease expirations, net of rent commencements, and other tenant related items		(13.9	)
Change in interest expense, net of interest income		(9.1	)
2023 Development fee pool bonus expense		6.4
Variable businesses (primarily signage)		5.1
THE MART write-off of straight-line rent receivable		(4.6	)
Other, net		(0.6	)
		(1.6	)
Noncontrolling interests' share of above items and impact of assumed conversions of convertible securities		—
Net decrease		(1.6	)		(0.02	)

FFO attributable to common shareholders plus assumed conversions, as adjusted (non-GAAP) for the three months ended December 31, 2024	$	122.2		$	0.61

See page 14 for a reconciliation of net income (loss) attributable to common shareholders to FFO attributable to common shareholders plus assumed conversions (non-GAAP) for the three months and years ended December 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.

Dispositions

666 Fifth Avenue (Fifth Avenue and Times Square JV)

On January 8, 2025, the Fifth Avenue and Times Square JV completed the sale to UNIQLO of the portion of its U.S. flagship store at 666 Fifth Avenue for $350,000,000 and realized net proceeds of $342,000,000. The financial statement gain, which will be recognized in the first quarter of 2025, will be approximately $76,000,000. The net proceeds from the sale were used to partially redeem Vornado’s preferred equity on the asset.

220 Central Park South

During the year ended December 31, 2024, we closed on the sale of two condominium units at 220 CPS for net proceeds of $31,605,000, resulting in a financial statement net gain of $15,175,000 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, $2,106,000 of income tax expense was recognized on our consolidated statements of income.

On January 17, 2025, we closed on the sale of a condominium unit at 220 CPS for net proceeds of $11,695,000; three units remain unsold.

50-70 West 93rd Street

On May 13, 2024, we sold our 49.9% interest in 50-70 West 93rd Street to our joint venture partner. We received net proceeds of $2,000,000 after deducting our share of the existing $83,500,000 mortgage loan, which was scheduled to mature in December 2024, resulting in a net gain of $873,000. The net gain is included in "net gains on disposition of wholly owned and partially owned assets" on our consolidated statements of income.

Acquisitions

Investment in Loan

On August 6, 2024, we purchased a $50,000,000 B-Note secured by a Midtown Manhattan property at par. The B-Note, together with the $35,000,000 A-Note, is in default. The B-Note accrues interest at 5.25% plus 4.00% default interest. The $50,000,000 B-Note investment was recorded to “other assets” on our consolidated balance sheets.

Financing Activity

Senior Unsecured Notes due 2025

We repaid our $450,000,000 3.50% senior unsecured notes on their January 15, 2025 maturity date.

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

On September 30, 2024, Alexander’s, in which we own a 32.4% common equity interest, completed a $400,000,000 refinancing of the office condominium portion of 731 Lexington Avenue, the Bloomberg LP headquarters building. The interest-only loan carries a fixed rate of 5.04% and matures in October 2028. The loan is prepayable, at Alexander’s option, with no penalty, beginning in October 2026. The loan replaces the previous $490,000,000 loan on the office condominium, that bore interest at the Prime Rate and was scheduled to mature in October 2024.

85 Tenth Avenue

On September 24, 2024, a joint venture, in which we have a 49.9% interest, modified the terms of the $625,000,000 mortgage loan on 85 Tenth Avenue. Per the original loan agreement, the mortgage loan is comprised of a (i) $396,000,000 3.82% senior note, (ii) $129,000,000 5.20% mezzanine A note and (iii) $100,000,000 6.60% mezzanine B note. The modification provides for the interest payments due under the mezzanine notes to be deferred until the December 2026 loan maturity. The deferred amounts will not accrue additional interest. The cash available from the deferred interest payments will be used to fund leasing costs at the property. At loan maturity, if there is no event of default, repayment of 50% of the accrued mezzanine interest will be waived.

606 Broadway

On September 5, 2024, the $74,119,000 non-recourse mortgage loan on 606 Broadway, in which we hold a 50% interest, matured and was not repaid, at which time the lender declared an event of default. As of December 31, 2024, the property has a carrying value of $53,886,000, which is after an impairment charge recorded in the fourth quarter of 2023. We consolidate the joint venture. The loan currently bears interest at a floating rate of SOFR plus 1.91% (6.39% as of December 31, 2024) and provides for additional default interest of 3.00%.

640 Fifth Avenue (Fifth Avenue and Times Square JV)

On June 10, 2024, the Fifth Avenue and Times Square JV completed a $400,000,000 refinancing of 640 Fifth Avenue. The non-recourse loan matures in July 2029, bears interest at a fixed rate of 7.47% and amortizes at $7,000,000 per annum. The loan replaces the previous $500,000,000 loan, which the joint venture paid down by $100,000,000. The previous loan was fully recourse to the Operating Partnership and bore interest at SOFR plus 1.11%.

Financing Activity – continued

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 replaced the $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 1.15% and a facility fee of 25 basis points.

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%.

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%. On July 8, 2024, the joint venture swapped the interest rate to a fixed rate of 5.84% through September 2028. 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. In connection with the repayment of the mezzanine loan, we recognized our $31,215,000 share of the debt extinguishment gain which is included in “income (loss) from partially owned entities” on our consolidated statements of income.

Interest Rate Swap and Cap Arrangements

We entered into the following interest rate swap and cap arrangements during the year ended December 31, 2024:

(Amounts in thousands)	Notional Amount (at share)		All-In Swapped Rate	Expiration Date	Variable Rate Spread
Interest rate swaps:
280 Park Avenue (50.0% interest)	$	537,500	5.84%	09/28	S+178
PENN 11⁽¹⁾		250,000	6.21%	10/25	S+206
435 Seventh Avenue		75,000	6.96%	04/26	S+210

			Index Strike Rate
Interest rate caps:
61 Ninth Avenue (45.1% interest)	$	75,543	4.39%	01/26	S+146
Rego Park II (32.4% interest)		65,624	4.15%	12/25	S+145
________________________________

⁽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.}

Alexander’s

On May 3, 2024, 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.

(Square feet in thousands)	New York									555 California
	Office			Retail			THE MART			Street
Three Months Ended December 31, 2024
Total square feet leased		583			50			64			62
Our share of square feet leased:		513			32			64			43
Initial rent⁽¹⁾	$	87.48		$	315.10		$	52.28		$	133.87
Weighted average lease term (years)		5.0			11.3			6.8			3.7
Second generation relet space:
Square feet		400			21			40			39
GAAP basis:
Straight-line rent⁽²⁾	$	93.44		$	399.79		$	51.91		$	131.44
Prior straight-line rent	$	75.42		$	219.39		$	51.15		$	106.87
Percentage increase		23.9	%		82.2	%		1.5	%		23.0	%
Cash basis (non-GAAP):
Initial rent⁽¹⁾	$	85.67		$	350.12		$	53.90		$	131.24
Prior escalated rent	$	80.82		$	234.14		$	57.55		$	127.86
Percentage increase (decrease)		6.0	%		49.5	%		(6.3	)%		2.6	%
Tenant improvements and leasing commissions:
Per square foot	$	63.81		$	174.01		$	76.81		$	69.00
Per square foot per annum	$	12.76		$	15.40		$	11.30		$	18.65
Percentage of initial rent		14.6	%		4.9	%		21.6	%		13.9	%
________________________________
^{See notes below.}

(Square feet in thousands)	New York									555 California
	Office			Retail			THE MART			Street
Year Ended December 31, 2024
Total square feet leased		2,650			187			386			215
Our share of square feet leased:		1,653			161			386			152
Initial rent⁽¹⁾	$	104.49		$	160.01		$	52.88		$	102.80
Weighted average lease term (years)		8.4			9.4			7.5			7.6
Second generation relet space:
Square feet		1,218			52			247			148
GAAP basis:
Straight-line rent⁽²⁾	$	103.06		$	312.43		$	54.38		$	103.05
Prior straight-line rent	$	92.97		$	227.98		$	51.57		$	88.21
Percentage increase		10.9	%		37.0	%		5.4	%		16.8	%
Cash basis (non-GAAP):
Initial rent⁽¹⁾	$	107.99		$	294.38		$	55.76		$	101.31
Prior escalated rent	$	105.37		$	271.77		$	57.37		$	101.45
Percentage increase (decrease)		2.5	%		8.3	%		(2.8	)%		(0.1	)%
Tenant improvements and leasing commissions:
Per square foot	$	81.56		$	82.50		$	91.00		$	110.36
Per square foot per annum	$	9.71		$	8.78		$	12.13		$	14.52
Percentage of initial rent		9.3	%		5.5	%		22.9	%		14.1	%
_______________________________

⁽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.}

Occupancy

(At Vornado's share)	New York								555 California
	Total		Office		Retail		THE MART		Street
Occupancy as of December 31, 2024	87.6	%	88.8	%	73.7	%	80.1	%	92.0	%

Same Store Net Operating Income ("NOI") (non-GAAP) At Share:	Total		New York		THE MART⁽²⁾		555 California Street⁽³⁾
Same store NOI at share % (decrease) increase⁽¹⁾:
Three months ended December 31, 2024 compared to December 31, 2023	(4.5	)%	(0.7	)%	(57.5	)%	(13.2	)%
Year ended December 31, 2024 compared to December 31, 2023	(6.8	)%	(4.7	)%	(17.8	)%	(21.9	)%
Three months ended December 31, 2024 compared to September 30, 2024	4.0	%	8.7	%	(58.8	)%	(0.3	)%

Same store NOI at share – cash basis % (decrease) increase⁽¹⁾:
Three months ended December 31, 2024 compared to December 31, 2023	(3.8	)%	(2.2	)%	(32.0	)%	(1.5	)%
Year ended December 31, 2024 compared to December 31, 2023	(4.5	)%	(3.3	)%	(10.6	)%	(13.2	)%
Three months ended December 31, 2024 compared to September 30, 2024	0.0	%	2.7	%	(29.2	)%	(8.1	)%
____________________

⁽¹⁾	^{See pages 16 through 22 for same store NOI at share and same store NOI at share – cash basis reconciliations.}
⁽²⁾	^{2024 includes a $4,560,000 write-off of a receivable arising from the straight-lining of rents due to the tenant being deemed uncollectible.}
⁽³⁾	^{The year ended December 31, 2023 includes our $14,103,000 share of the receipt of a tenant settlement, net of legal expenses.}

NOI At Share and 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 and years ended December 31, 2024 and 2023 and the three months ended September 30, 2024 are summarized below.

(Amounts in thousands)	For the Three Months Ended						For the Year Ended
	December 31,				September 30,		December 31,
		2024		2023	2024			2024		2023
NOI at share:
New York:
Office⁽¹⁾	$	193,215	$	182,769	$	167,051	$	706,592	$	727,000
Retail		48,238		47,378		47,283		191,379		188,561
Residential		6,072		5,415		5,784		24,044		21,910
Alexander's		9,515		12,013		9,470		39,895		40,098
Total New York		257,040		247,575		229,588		961,910		977,569
Other:
THE MART⁽²⁾		6,168		14,516		14,972		51,686		61,519
555 California Street⁽³⁾		15,854		18,125		15,780		64,963		82,965
Other investments		5,904		6,880		5,151		21,193		21,160
Total Other		27,926		39,521		35,903		137,842		165,644
NOI at share	$	284,966	$	287,096	$	265,491	$	1,099,752	$	1,143,213

NOI at share – cash basis:
New York:
Office⁽¹⁾	$	181,438	$	183,742	$	173,415	$	698,138	$	726,914
Retail		44,130		46,491		44,095		176,798		180,932
Residential		5,750		5,137		5,527		22,914		20,588
Alexander's		10,615		11,059		10,424		46,172		41,435
Total New York		241,933		246,429		233,461		944,022		969,869
Other:
THE MART		10,550		15,511		14,901		57,235		62,579
555 California Street⁽³⁾		18,138		18,265		19,589		74,621		85,819
Other investments		5,967		7,012		4,347		20,211		21,569
Total Other		34,655		40,788		38,837		152,067		169,967
NOI at share – cash basis	$	276,588	$	287,217	$	272,298	$	1,096,089	$	1,139,836
________________________________

⁽¹⁾	^{Includes Building Maintenance Services NOI of $6,895, $6,424, $8,280, $30,318 and $27,262 for the three months ended December 31, 2024 and 2023 and September 30, 2024 and the years ended December 31, 2024 and 2023, respectively.}
⁽²⁾	^{2024 includes a $4,560 write-off of a receivable arising from the straight-lining of rents due to the tenant being deemed uncollectible.}
⁽³⁾	^{The year ended December 31, 2023 includes our $14,103 share of the receipt of a tenant settlement, net of legal expenses.}

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

(Amounts in thousands, except square feet)
		(at Vornado’s share)
New York segment:	Property Rentable Sq. Ft.	Budget			Cash Amount Expended		Remaining Expenditures		Stabilization Year	Projected Incremental Cash Yield
PENN District:
PENN 2	1,795,000	$	750,000		$	697,451	$	52,549	2026	10.2%
Districtwide Improvements	N/A		100,000			70,919		29,081	N/A	N/A
Total PENN District			850,000	⁽¹⁾		768,370		81,630

Sunset Pier 94 Studios (49.9% interest)	266,000		125,000	⁽²⁾		52,093		72,907	2026	10.3%

Total Active Development Projects		$	975,000		$	820,463	$	154,537
________________________________

⁽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. As of December 31, 2024, we have fully funded our $34,000 share of cash contributions.}

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, February 11, 2025 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 0916117. 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, 2024. Currently, some of the factors are the interest rate fluctuations 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
	December 31, 2024			December 31, 2023			(Decrease)
ASSETS
Real estate, at cost:
Land	$	2,434,209		$	2,436,221		$	(2,012	)
Buildings and improvements		10,439,113			9,952,954			486,159
Development costs and construction in progress		1,097,395			1,281,076			(183,681	)
Leasehold improvements and equipment		120,915			130,953			(10,038	)
Total		14,091,632			13,801,204			290,428
Less accumulated depreciation and amortization		(4,025,349	)		(3,752,827	)		(272,522	)
Real estate, net		10,066,283			10,048,377			17,906
Right-of-use assets		678,804			680,044			(1,240	)
Cash, cash equivalents, and restricted cash
Cash and cash equivalents		733,947			997,002			(263,055	)
Restricted cash		215,672			264,582			(48,910	)
Total		949,619			1,261,584			(311,965	)
Tenant and other receivables		58,853			69,543			(10,690	)
Investments in partially owned entities		2,691,478			2,610,558			80,920
Receivable arising from the straight-lining of rents		707,020			701,666			5,354
Deferred leasing costs, net		354,882			355,010			(128	)
Identified intangible assets, net		118,215			127,082			(8,867	)
Other assets		373,454			333,801			39,653
Total assets	$	15,998,608		$	16,187,665		$	(189,057	)
LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND EQUITY
Liabilities:
Mortgages payable, net	$	5,676,014		$	5,688,020		$	(12,006	)
Senior unsecured notes, net		1,195,914			1,193,873			2,041
Unsecured term loan, net		795,948			794,559			1,389
Unsecured revolving credit facilities		575,000			575,000			—
Lease liabilities		749,759			732,859			16,900
Accounts payable and accrued expenses		374,013			411,044			(37,031	)
Deferred revenue		28,424			32,199			(3,775	)
Deferred compensation plan		114,580			105,245			9,335
Other liabilities		317,087			311,132			5,955
Total liabilities		9,826,739			9,843,931			(17,192	)
Redeemable noncontrolling interests		834,658			638,448			196,210
Shareholders' equity		5,158,242			5,509,064			(350,822	)
Noncontrolling interests in consolidated subsidiaries		178,969			196,222			(17,253	)
Total liabilities, redeemable noncontrolling interests and equity	$	15,998,608		$	16,187,665		$	(189,057	)

VORNADO REALTY TRUST
OPERATING RESULTS

(Amounts in thousands, except per share amounts)	For the Three Months Ended December 31,						For the Year Ended December 31,
		2024			2023			2024			2023
Revenues	$	457,790		$	441,886		$	1,787,686		$	1,811,163

Net income (loss)	$	5,758		$	(100,613	)	$	20,116		$	32,888
Less net loss (income) attributable to noncontrolling interests in:
Consolidated subsidiaries		11,107			49,717			51,131			75,967
Operating Partnership		(136	)		5,412			(860	)		(3,361	)
Net income (loss) attributable to Vornado		16,729			(45,484	)		70,387			105,494
Preferred share dividends		(15,526	)		(15,529	)		(62,112	)		(62,116	)
Net income (loss) attributable to common shareholders	$	1,203		$	(61,013	)	$	8,275		$	43,378

Income (loss) per common share - basic:
Net income (loss) per common share	$	0.01		$	(0.32	)	$	0.04		$	0.23
Weighted average shares outstanding		190,679			190,361			190,539			191,005

Income (loss) per common share - diluted:
Net income (loss) per common share	$	0.01		$	(0.32	)	$	0.04		$	0.23
Weighted average shares outstanding		200,084			190,361			196,626			191,856

FFO attributable to common shareholders plus assumed conversions (non-GAAP)	$	117,085		$	121,105		$	470,021		$	503,792
Per diluted share (non-GAAP)	$	0.58		$	0.62		$	2.37		$	2.59

FFO attributable to common shareholders plus assumed conversions, as adjusted (non-GAAP)	$	122,212		$	123,751		$	447,071		$	508,151
Per diluted share (non-GAAP)	$	0.61		$	0.63		$	2.26		$	2.61

Weighted average shares used in determining FFO attributable to common shareholders plus assumed conversions per diluted share		201,210			195,291			198,182			194,324

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 income (loss) 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 2 of this press release.

VORNADO REALTY TRUST
NON-GAAP RECONCILIATIONS

The following table reconciles net income (loss) attributable to common shareholders to FFO attributable to common shareholders plus assumed conversions:

(Amounts in thousands, except per share amounts)	For the Three Months Ended December 31,						For the Year Ended December 31,
		2024			2023			2024			2023
Net income (loss) attributable to common shareholders	$	1,203		$	(61,013	)	$	8,275		$	43,378
Per diluted share	$	0.01		$	(0.32	)	$	0.04		$	0.23

FFO adjustments:
Depreciation and amortization of real property	$	101,824		$	98,085		$	399,694		$	385,608
Real estate impairment losses		—			22,206			—			22,831
Net gains on sale of real estate		—			—			(873	)		(53,305	)
Our share of partially owned entities:
Depreciation and amortization of real property		23,483			27,188			101,195			108,088
Net gain on sale of real estate		—			—			—			(16,545	)
Real estate impairment losses		—			50,458			—			50,458
FFO adjustments, net		125,307			197,937			500,016			497,135
Impact of assumed conversion of dilutive convertible securities		358			388			1,549			1,642
Noncontrolling interests' share of above adjustments on a dilutive basis		(9,783	)		(16,207	)		(39,819	)		(38,363	)
FFO attributable to common shareholders plus assumed conversions	$	117,085		$	121,105		$	470,021		$	503,792
Per diluted share	$	0.58		$	0.62		$	2.37		$	2.59

Reconciliation of weighted average shares outstanding:
Weighted average common shares outstanding		190,679			190,361			190,539			191,005
Effect of dilutive securities:
Share-based payment awards		9,405			2,857			6,087			851
Convertible securities		1,126			2,073			1,556			2,468
Denominator for FFO per diluted share		201,210			195,291			198,182			194,324

VORNADO REALTY TRUST
NON-GAAP RECONCILIATIONS – CONTINUED

Below is a reconciliation of net income (loss) to NOI at share and NOI at share – cash basis for the three months and years ended December 31, 2024 and 2023 and the three months ended September 30, 2024.

(Amounts in thousands)	For the Three Months Ended									For the Year Ended
	December 31,						September 30,			December 31,
		2024			2023		2024				2024			2023
Net income (loss)	$	5,758		$	(100,613	)	$	(19,468	)	$	20,116		$	32,888
Depreciation and amortization expense		113,061			110,197			116,006			447,500			434,273
General and administrative expense		36,637			46,040			35,511			148,520			162,883
Transaction related costs, impairment losses and other		1,341			49,190			(113	)		5,242			50,691
(Income) loss from partially owned entities		(30,007	)		33,518			(18,229	)		(112,464	)		(38,689	)
Interest and other investment income, net		(11,348	)		(5,833	)		(12,391	)		(45,974	)		(43,287	)
Interest and debt expense		100,483			87,695			100,907			390,269			349,223
Net gains on disposition of wholly owned and partially owned assets		—			(6,607	)		—			(16,048	)		(71,199	)
Income tax expense		5,822			8,374			4,883			22,729			29,222
NOI from partially owned entities		73,270			74,819			67,292			279,229			285,761
NOI attributable to noncontrolling interests in consolidated subsidiaries		(10,051	)		(9,684	)		(8,907	)		(39,367	)		(48,553	)
NOI at share		284,966			287,096			265,491			1,099,752			1,143,213
Non-cash adjustments for straight-line rents, amortization of acquired below-market leases, net, and other		(8,378	)		121			6,807			(3,663	)		(3,377	)
NOI at share – cash basis	$	276,588		$	287,217		$	272,298		$	1,096,089		$	1,139,836

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 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 use 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 December 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 December 31, 2024	$	284,966		$	257,040		$	6,168		$	15,854		$	5,904
Less NOI at share from:
Dispositions		(55	)		(55	)		—			—			—
Development properties		(5,627	)		(5,627	)		—			—			—
Other non-same store income, net		(16,576	)		(10,546	)		—			(126	)		(5,904	)
Same store NOI at share for the three months ended December 31, 2024	$	262,708		$	240,812		$	6,168		$	15,728		$	—

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:
Dispositions		(532	)		(542	)		10			—			—
Development properties		(2,684	)		(2,684	)		—			—			—
Other non-same store income, net		(8,669	)		(1,789	)		—			—			(6,880	)
Same store NOI at share for the three months ended December 31, 2023	$	275,211		$	242,560		$	14,526		$	18,125		$	—

Decrease in same store NOI at share	$	(12,503	)	$	(1,748	)	$	(8,358	)	$	(2,397	)	$	—

% decrease in same store NOI at share		(4.5	)%		(0.7	)%		(57.5	)%		(13.2	)%		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 December 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 December 31, 2024	$	276,588		$	241,933		$	10,550		$	18,138		$	5,967
Less NOI at share – cash basis from:
Dispositions		(55	)		(55	)		—			—			—
Development properties		(1,664	)		(1,664	)		—			—			—
Other non-same store income, net		(11,397	)		(5,287	)		—			(143	)		(5,967	)
Same store NOI at share – cash basis for the three months ended December 31, 2024	$	263,472		$	234,927		$	10,550		$	17,995		$	—

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:
Dispositions		(532	)		(542	)		10			—			—
Development properties		(2,518	)		(2,518	)		—			—			—
Other non-same store income, net		(10,149	)		(3,137	)		—			—			(7,012	)
Same store NOI at share – cash basis for the three months ended December 31, 2023	$	274,018		$	240,232		$	15,521		$	18,265		$	—

Decrease in same store NOI at share – cash basis	$	(10,546	)	$	(5,305	)	$	(4,971	)	$	(270	)	$	—

% decrease in same store NOI at share – cash basis		(3.8	)%		(2.2	)%		(32.0	)%		(1.5	)%		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 year ended December 31, 2024 compared to December 31, 2023.

(Amounts in thousands)	Total			New York			THE MART			555 California Street			Other
NOI at share for the year ended December 31, 2024	$	1,099,752		$	961,910		$	51,686		$	64,963		$	21,193
Less NOI at share from:
Dispositions		(1,499	)		(1,509	)		10			—			—
Development properties		(35,182	)		(35,182	)		—			—			—
Other non-same store income, net		(34,735	)		(13,416	)		—			(126	)		(21,193	)
Same store NOI at share for the year ended December 31, 2024	$	1,028,336		$	911,803		$	51,696		$	64,837		$	—

NOI at share for the year ended December 31, 2023	$	1,143,213		$	977,569		$	61,519		$	82,965		$	21,160
Less NOI at share from:
Dispositions		(2,321	)		(3,677	)		1,356			—			—
Development properties		(16,310	)		(16,310	)		—			—			—
Other non-same store income, net		(21,589	)		(429	)		—			—			(21,160	)
Same store NOI at share for the year ended December 31, 2023	$	1,102,993		$	957,153		$	62,875		$	82,965		$	—

Decrease in same store NOI at share	$	(74,657	)	$	(45,350	)	$	(11,179	)	$	(18,128	)	$	—

% decrease in same store NOI at share		(6.8	)%		(4.7	)%		(17.8	)%		(21.9	)%		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 year ended December 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 year ended December 31, 2024	$	1,096,089		$	944,022		$	57,235		$	74,621		$	20,211
Less NOI at share – cash basis from:
Dispositions		(1,499	)		(1,509	)		10			—			—
Development properties		(21,561	)		(21,561	)		—			—			—
Other non-same store income, net		(31,681	)		(11,327	)		—			(143	)		(20,211	)
Same store NOI at share – cash basis for the year ended December 31, 2024	$	1,041,348		$	909,625		$	57,245		$	74,478		$	—

NOI at share – cash basis for the year ended December 31, 2023	$	1,139,836		$	969,869		$	62,579		$	85,819		$	21,569
Less NOI at share – cash basis from:
Dispositions		(2,664	)		(4,138	)		1,474			—			—
Development properties		(15,519	)		(15,519	)		—			—			—
Other non-same store income, net		(30,737	)		(9,168	)		—			—			(21,569	)
Same store NOI at share - cash basis for the year ended December 31, 2023	$	1,090,916		$	941,044		$	64,053		$	85,819		$	—

Decrease in same store NOI at share – cash basis	$	(49,568	)	$	(31,419	)	$	(6,808	)	$	(11,341	)	$	—

% decrease in same store NOI at share – cash basis		(4.5	)%		(3.3	)%		(10.6	)%		(13.2	)%		0.0	%

VORNADO REALTY TRUST
NON-GAAP RECONCILIATIONS – CONTINUED

(Amounts in thousands)	Total			New York			THE MART			555 California Street			Other
NOI at share for the three months ended December 31, 2024	$	284,966		$	257,040		$	6,168		$	15,854		$	5,904
Less NOI at share from:
Dispositions		(55	)		(55	)		—			—			—
Development properties		(12,427	)		(12,427	)		—			—			—
Other non-same store income, net		(15,497	)		(9,467	)		—			(126	)		(5,904	)
Same store NOI at share for the three months ended December 31, 2024	$	256,987		$	235,091		$	6,168		$	15,728		$	—

NOI at share for the three months ended September 30, 2024	$	265,491		$	229,588		$	14,972		$	15,780		$	5,151
Less NOI at share from:
Dispositions		(25	)		(29	)		4			—			—
Development properties		(11,959	)		(11,959	)		—			—			—
Other non-same store income, net		(6,437	)		(1,286	)		—			—			(5,151	)
Same store NOI at share for the three months ended September 30, 2024	$	247,070		$	216,314		$	14,976		$	15,780		$	—

Increase (decrease) in same store NOI at share	$	9,917		$	18,777		$	(8,808	)	$	(52	)	$	—

% increase (decrease) in same store NOI at share		4.0	%		8.7	%		(58.8	)%		(0.3	)%		0.0	%

VORNADO REALTY TRUST
NON-GAAP RECONCILIATIONS – CONTINUED

(Amounts in thousands)	Total			New York			THE MART			555 California Street			Other
NOI at share – cash basis for the three months ended December 31, 2024	$	276,588		$	241,933		$	10,550		$	18,138		$	5,967
Less NOI at share – cash basis from:
Dispositions		(55	)		(55	)		—			—			—
Development properties		(7,666	)		(7,666	)		—			—			—
Other non-same store income, net		(10,263	)		(4,153	)		—			(143	)		(5,967	)
Same store NOI at share – cash basis for the three months ended December 31, 2024	$	258,604		$	230,059		$	10,550		$	17,995		$	—

NOI at share – cash basis for the three months ended September 30, 2024	$	272,298		$	233,461		$	14,901		$	19,589		$	4,347
Less NOI at share – cash basis from:
Dispositions		(25	)		(29	)		4			—			—
Development properties		(6,574	)		(6,574	)		—			—			—
Other non-same store income, net		(7,160	)		(2,813	)		—			—			(4,347	)
Same store NOI at share – cash basis for the three months ended September 30, 2024	$	258,539		$	224,045		$	14,905		$	19,589		$	—

Increase (decrease) in same store NOI at share – cash basis	$	65		$	6,014		$	(4,355	)	$	(1,594	)	$	—

% increase (decrease) in same store NOI at share – cash basis		0.0	%		2.7	%		(29.2	)%		(8.1	)%		0.0	%

FAQ

What was VNO's FFO per share for Q4 2024?

Vornado's FFO per share for Q4 2024 was $0.58, compared to $0.62 in Q4 2023.

How much did VNO receive from the UNIQLO flagship store sale?

VNO received net proceeds of $342M from the sale of UNIQLO's flagship store at 666 Fifth Avenue, with an expected gain of $76M in Q1 2025.

What was VNO's occupancy rate as of December 31, 2024?

VNO's total occupancy rate was 87.6% as of December 31, 2024, with office at 88.8% and retail at 73.7%.

How did VNO's same store NOI perform in Q4 2024?

VNO's same store NOI decreased by 4.5% in Q4 2024 compared to Q4 2023.

What was the status of VNO's 220 Central Park South condo sales in 2024?

VNO sold two condos at 220 CPS for net proceeds of $31.6M, resulting in a net gain of $15.2M, with three units remaining unsold.

Vornado Announces Fourth Quarter 2024 Financial Results

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What was VNO's FFO per share for Q4 2024?

How much did VNO receive from the UNIQLO flagship store sale?

What was VNO's occupancy rate as of December 31, 2024?

How did VNO's same store NOI perform in Q4 2024?

What was the status of VNO's 220 Central Park South condo sales in 2024?

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Vornado Announces Fourth Quarter 2024 Financial Results

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FAQ

What was VNO's FFO per share for Q4 2024?

How much did VNO receive from the UNIQLO flagship store sale?

What was VNO's occupancy rate as of December 31, 2024?

How did VNO's same store NOI perform in Q4 2024?

What was the status of VNO's 220 Central Park South condo sales in 2024?

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