Vornado Completes $350 Million Refinancing of 909 Third Avenue

Rhea-AI Summary

Vornado Realty Trust (NYSE: VNO) has finalized a $350 million refinancing for its 909 Third Avenue property in Manhattan. This refinancing replaces an existing loan of the same amount, reducing the fixed interest rate from 3.91% to 3.23%, with a maturity date set for April 2031. The building spans 1.4 million square feet, enhancing Vornado's financial strategy in a challenging market.

Positive

• Reduced interest rate from 3.91% to 3.23%, resulting in potential lower financing costs.
• Extended loan maturity to April 2031, providing financial stability.

Negative

• Continued uncertainties related to the COVID-19 pandemic impacting real estate market performance.

NEW YORK, March 29, 2021 (GLOBE NEWSWIRE) -- VORNADO REALTY TRUST (NYSE: VNO) announced today that it has completed a $350 million refinancing of 909 Third Avenue, a 1.4 million square foot Manhattan office building. The interest only loan bears a fixed rate of 3.23% and matures in April 2031.

The loan replaces the previous $350 million loan that bore interest at a fixed rate of 3.91% and was scheduled to mature in May 2021.

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

CONTACT

Thomas 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. 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, 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 has 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. 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, 2020.

FAQ

What is the refinancing amount for Vornado Realty Trust's 909 Third Avenue?

Vornado Realty Trust completed a refinancing of $350 million for 909 Third Avenue.

What is the new interest rate on the refinancing for VNO?

The new fixed interest rate on the refinancing is 3.23%.

When does the refinancing loan for Vornado Realty Trust mature?

The refinancing loan matures in April 2031.

How does the refinancing affect Vornado Realty Trust's financial strategy?

The refinancing reduces interest costs and extends loan maturity, enhancing financial stability.

What challenges does Vornado Realty Trust face post-refinancing?

Vornado Realty Trust faces ongoing challenges related to the COVID-19 pandemic affecting the real estate market.