Vornado Announces Postponement of Common Share Dividends Until Year-End and Authorization of $200 Million Share Repurchase Program

Rhea-AI Summary

Vornado Realty Trust (NYSE:VNO) announced the postponement of dividends on its common shares until the end of 2023, contingent on finalizing its taxable income and asset sales. The Board will decide on dividend payment methods, which may include cash or a combination of cash and securities.

Additionally, Vornado's Board has authorized a share repurchase program of up to $200 million to enhance shareholder value. Funds saved from the postponed dividends and asset sales will be allocated towards debt reduction or share repurchases. The company may execute these repurchases through various means, with decisions based on economic and market conditions. The program has no expiration date and can be suspended at any time.

Positive

• Authorized a share repurchase program worth $200 million to enhance shareholder value.
• Potential for increased shareholder value through future dividend payments and share buybacks.

Negative

• Postponement of dividend payments may lead to reduced immediate shareholder returns.
• Uncertainty regarding the timing and amount of future dividend payments based on income and asset sale finalization.

NEW YORK, April 26, 2023 (GLOBE NEWSWIRE) -- Vornado Realty Trust (NYSE:VNO) announced today that it will postpone dividends on its common shares until the end of 2023, at which time, upon finalization of its 2023 taxable income, including the impact of asset sales, it will pay the 2023 dividend in either (i) cash, or (ii) a combination of cash and securities, as determined by its Board of Trustees.

Vornado also announced that, in order to enhance shareholder value, its Board of Trustees has authorized the repurchase of up to $200 million of its outstanding common shares under a newly established share repurchase program. Cash retained from dividends or from asset sales will be used to reduce debt and/or fund share repurchases.

Share repurchases may be made from time to time in the open market, through privately negotiated transactions or through other means as permitted by federal securities laws, including through block trades, accelerated share repurchase transactions and/or trading plans intended to qualify under Rule 10b5-1. The timing, manner, price and amount of any repurchases will be determined in Vornado’s discretion depending on business, economic and market conditions, corporate and regulatory requirements, prevailing prices for Vornado’s common shares, alternative uses for capital and other considerations. The program does not have an expiration date and may be suspended or discontinued at any time and does not obligate Vornado to make any repurchases of its common shares.

Vornado Realty Trust is a fully-integrated equity real estate investment trust.

CONTACT

Thomas J. Sanelli
(212) 894-7000

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 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: the amount and form of potential share repurchases and/or any asset sales and the expectation regarding the form of any 2023 dividend payments. 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, 2022. Currently, some of the factors are the increase in interest rates and inflation and the continuing effect of the COVID-19 pandemic 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.

FAQ

What is Vornado's new dividend policy for 2023?

Vornado has postponed dividends on common shares until the end of 2023, pending the finalization of its taxable income and asset sales.

How much is Vornado planning to repurchase in its share buyback program?

Vornado has authorized a share repurchase program of up to $200 million.

What will the funds from the postponed dividends be used for?

Cash retained from postponed dividends will be used to reduce debt or fund share repurchases.

Is there an expiration date for Vornado's share repurchase program?

No, the share repurchase program does not have an expiration date and may be suspended or discontinued at any time.

How will the decision on future dividends be made?

Future dividends will be decided by Vornado's Board based on the company's taxable income and impact from asset sales.