EX-99.2 3 vno-033119xexhibit992xfina.htm EXHIBIT 99.2 Exhibit

Exhibit 99.2


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INDEX
 
 
 
 
Page
 
 
 
 
BUSINESS DEVELOPMENTS
-
 
 
 
 
FINANCIAL INFORMATION
 
 
 
Financial Highlights
 
 
Net Income (Loss) 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
 
 
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
 
 
 
Development/Redevelopment Summary
 
 
Capital Expenditures, Tenant Improvements and Leasing Commissions
-
 
 
 
 
PROPERTY STATISTICS
 
 
 
Square Footage
 
 
Top 30 Tenants
 
 
Occupancy and Residential Statistics
 
 
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 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 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 our Annual Report on Form 10-K for the year ended December 31, 2018. 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.

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BUSINESS DEVELOPMENTS
 
Disposition Activity

220 Central Park South ("220 CPS")

During the first quarter of 2019, we closed on the sale of 12 condominium units at 220 CPS for net proceeds aggregating $425,484,000 and resulting in a financial statement net gain of $157,899,000 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, $26,945,000 of income tax expense was recognized in our consolidated statements of income. From inception to March 31, 2019, we closed on the sale of 23 units for aggregate net proceeds of $640,260,000 which was used to pay $637,000,000 of the $950,000,000 220 CPS loan.

Lexington Realty Trust ("Lexington")

On March 1, 2019, we sold all of our 18,468,969 common shares of Lexington realizing net proceeds of $167,698,000. For the three months ended March 31, 2019, we recorded a $16,068,000 mark-to-market increase in the fair value of our common shares for the period from January 1, 2019 through the date of sale, which is included in "interest and other investment income (loss), net" on our consolidated statements of income.

Urban Edge Properties (“UE”)

On March 4, 2019, we converted to common shares and sold all of our 5,717,184 partnership units of UE, realizing net proceeds of $108,512,000. The sale resulted in a net gain of $62,395,000 which is included in "net gains on disposition of wholly owned and partially owned assets" on our consolidated statements of income for the three months ended March 31, 2019.

Fifth Avenue and Times Square JV

On April 18, 2019 ("Closing Date"), we entered into a transaction agreement (the "Transaction Agreement") with a group of institutional investors (the "Investors"). The Transaction Agreement provides for a series of transactions (collectively, the "Transaction") pursuant to which (i) prior to the Closing Date, the Operating Partnership contributed its interests in properties located at 640 Fifth Avenue, 655 Fifth Avenue, 666 Fifth Avenue, 689 Fifth Avenue, 697-703 Fifth Avenue, 1535 Broadway and 1540 Broadway (collectively, the “Properties”) to subsidiaries of a newly formed joint venture ("Fifth Avenue and Times Square JV") and (ii) on the Closing Date, transferred a 48.5% common interest in Fifth Avenue and Times Square JV to the Investors. The 48.5% common interest in the joint venture represents an effective 47.2% interest in the Properties. The Properties include approximately 489,000 square feet of retail space, 327,000 square feet of office space, signage associated with 1535 and 1540 Broadway, the parking garage at 1540 Broadway and the theatre at 1535 Broadway.

We retained the remaining 51.5% common interest in Fifth Avenue and Times Square JV which represents an effective 51.0% interest in the Properties and an aggregate $1.828 billion of preferred equity interests in certain of the properties. The preferred equity has an annual coupon of 4.25% for the first five years, increasing to 4.75% for the next five years and thereafter at a formulaic rate. It can be redeemed under certain conditions on a tax deferred basis.

Net cash proceeds to us from the Transaction are approximately $1.198 billion, after (i) deductions for the repayment of a $390,000,000 mortgage loan on 666 Fifth Avenue and a $140,000,000 mortgage loan on 655 Fifth Avenue, (ii) anticipated proceeds from a new $500,000,000 mortgage loan on 640 Fifth Avenue, (iii) approximately $26,000,000 used to purchase noncontrolling investors' interests and (iv) approximately $56,000,000 of estimated transaction costs. Until the new mortgage closes, Vornado will retain $500 million of preferred equity interests in addition to the $1.828 billion referenced above.

The Transaction values the Properties at $5.556 billion resulting in a financial statement net gain of approximately $2.6 billion from the Transaction and the related step-up in our basis of the assets to fair value. The net gain will be recognized in our consolidated statements of income for the three months ended June 30, 2019. Our tax gain is approximately $735,000,000. We continue to manage the Properties and share control over major decisions of the joint venture. Accordingly, the Properties will be deconsolidated and the joint venture will be accounted for under the equity method from the date of transfer. As of March 31, 2019, the assets and liabilities associated with the Properties were classified as “assets held for sale” and “liabilities related to assets held for sale”, respectively, on our consolidated balance sheets.
  


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BUSINESS DEVELOPMENTS
 
Financing Activity

On January 28, 2019, the joint venture, in which we have a 45.1% interest, completed a $167,500,000 refinancing of 61 Ninth Avenue, a 166,000 square foot newly constructed office and retail property in the Meatpacking district of Manhattan which is fully leased to Aetna and Starbucks. The seven-year interest only loan carries a rate of LIBOR plus 1.35% (3.85% as of March 31, 2019) and matures in January 2026. We realized net proceeds of approximately $31,000,000. The loan replaces the previous $90,000,000 construction loan that bore interest at LIBOR plus 3.05% and was scheduled to mature in 2021.

On February 4, 2019, we completed a $95,700,000 refinancing of 435 Seventh Avenue, a 43,000 square foot Manhattan retail property. The interest-only loan carries a rate of LIBOR plus 1.30% (3.78% as of March 31, 2019) and matures in 2024. The recourse loan replaces the previous $95,700,000 loan that bore interest at LIBOR plus 2.25% and was scheduled to mature in August 2019.

On February 12, 2019, we completed a $580,000,000 refinancing of 100 West 33rd Street, a 1.1 million square foot Manhattan property comprised of 859,000 square feet of office space and the 256,000 square foot Manhattan Mall. The interest-only loan carries a rate of LIBOR plus 1.55% (4.03% as of March 31, 2019) and matures in April 2024, with two one-year extension options. The loan replaces the previous $580,000,000 loan that bore interest at LIBOR plus 1.65% and was scheduled to mature in July 2020.

On March 1, 2019, we called for redemption all of our $400,000,000 5.00% senior unsecured notes. The notes, which were scheduled to mature in January 2022, were redeemed on April 1, 2019 at a redemption price of 105.51% of the principal amount plus accrued interest. In connection therewith, we expensed $22,540,000 relating to debt prepayment costs which is included in "interest and debt expense" on our consolidated statements of income for the three months ended March 31, 2019.

On March 26, 2019, we increased to $1.5 billion (from $1.25 billion) and extended to March 2024 (as fully extended) from February 2022 one of our two unsecured revolving credit facilities. The interest rate on the extended facility was lowered from LIBOR plus 1.00% to LIBOR plus 0.90%. The facility fee remains unchanged at 20 basis points.

First Quarter Leasing Activity

396,000 square feet of New York Office space (350,000 square feet at share) at an initial rent of $75.91 per square foot and a weighted average term of 9 years. The GAAP and cash mark-to-market rent on the 312,000 square feet of second generation space were positive 0.9% and 1.8%, respectively. Tenant improvements and leasing commissions were $9.67 per square foot per annum, or 12.7% of initial rent.

49,000 square feet of New York Retail space (43,000 square feet at share) at an initial rent of $113.37 per square foot and a weighted average term of 3.4 years. The GAAP and cash mark-to-market rent on the 38,000 square feet of second generation space were positive 2.2% and negative 8.5%, respectively. Tenant improvements and leasing commissions were $5.93 per square foot per annum, or 5.2% of initial rent.

159,000 square feet at theMART at an initial rent of $46.67 per square foot and a weighted average term of 7.0 years. The GAAP and cash mark-to-market rent on the 157,000 square feet of second generation space were positive 11.3% and 6.2%, respectively. Tenant improvements and leasing commissions were $5.03 per square foot per annum, or 10.8% of initial rent.

61,000 square feet at 555 California Street (43,000 square feet at share) at an initial rent of $81.05 per square foot and a weighted average term of 5.1 years. The GAAP and cash mark-to-market rent on the 43,000 square feet of second generation space were positive 68.9% and 37.6%, respectively. Tenant improvements and leasing commissions were $9.64 per square foot per annum, or 11.9% of initial rent.


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FINANCIAL HIGHLIGHTS
 
 
 
 
 
(unaudited and in thousands, except per share amounts)
 
For the Three Months Ended
 
March 31,
 
December 31, 2018
 
2019
 
2018
 
Total revenues
$
534,668

 
$
536,437

 
$
543,417

 
 
 
 
 
 
Net income (loss) attributable to common shareholders
$
181,488

 
$
(17,841
)
 
$
100,494

Per common share:
 
 
 
 
 
Basic
$
0.95

 
$
(0.09
)
 
$
0.53

Diluted
$
0.95

 
$
(0.09
)
 
$
0.53

 
 
 
 
 
 
Net income attributable to common shareholders, as adjusted (non-GAAP)
$
24,814

 
$
55,340

 
$
49,437

Per diluted share (non-GAAP)
$
0.13

 
$
0.29

 
$
0.26

 
 
 
 
 
 
FFO attributable to common shareholders plus assumed conversions, as adjusted (non-GAAP)
$
149,939

 
$
172,907

 
$
169,874

Per diluted share (non-GAAP)
$
0.79

 
$
0.91

 
$
0.89

 
 
 
 
 
 
FFO attributable to common shareholders plus assumed conversions (non-GAAP)
$
247,684

 
$
135,000

 
$
210,100

FFO - Operating Partnership Basis ("OP Basis") (non-GAAP)
$
263,697

 
$
143,621

 
$
223,583

Per diluted share (non-GAAP)
$
1.30

 
$
0.71

 
$
1.10

 
 
 
 
 
 
Dividends per common share
$
0.66

 
$
0.63

 
$
0.63

 
 
 
 
 
 
FFO payout ratio (based on FFO attributable to common shareholders plus assumed conversions, as adjusted)
83.5
%
 
69.2
%
 
70.8
%
FAD payout ratio
86.8
%
 
91.3
%
 
100.0
%
 
 
 
 
 
 
Weighted average shares used in determining FFO attributable to common shareholders
   plus assumed conversions per diluted share (REIT basis)
190,996

 
191,057

 
191,199

Convertible units:
 
 
 
 
 
Class A
12,083

 
11,848

 
11,827

Equity awards - unit equivalents
265

 
353

 
443

Weighted average shares used in determining FFO attributable to Class A unitholders
   plus assumed conversions per diluted share (OP Basis)
203,344

 
203,258

 
203,469





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

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CONSOLIDATED NET INCOME (LOSS) ATTRIBUTABLE TO COMMON SHAREHOLDERS
(unaudited and in thousands)
 
 
For the Three Months Ended
 
 
March 31,
 
December 31,
2018
 
 
2019
 
2018
 
Inc (Dec)
 
Property rentals(1)
 
$
428,380

 
$
422,099

 
$
6,281

 
$
433,521

Tenant expense reimbursements(1)
 
66,112

 
60,310

 
5,802

 
62,119

Straight-lining of rents
 
(1,140
)
 
7,430

 
(8,570
)
 
(2,674
)
Amortization of acquired below-market leases, net
 
6,525

 
10,581

 
(4,056
)
 
7,093

Total rental revenues
 
499,877

 
500,420

 
(543
)
 
500,059

Fee and other income:
 
 
 
 
 
 
 
 
BMS cleaning fees
 
29,785

 
28,355

 
1,430

 
32,262

Management and leasing fees
 
2,237

 
2,764

 
(527
)
 
3,119

Lease termination fees
 
562

 
345

 
217

 
639

Other income
 
2,207

 
4,553

 
(2,346
)
 
7,338

Total revenues
 
534,668

 
536,437

 
(1,769
)
 
543,417

Operating expenses
 
(246,895
)
 
(237,602
)
 
(9,293
)
 
(254,320
)
Depreciation and amortization
 
(116,709
)
 
(108,686
)
 
(8,023
)
 
(112,869
)
General and administrative
 
(58,020
)
 
(42,533
)
 
(15,487
)
(2) 
(32,934
)
(Expense) benefit from deferred compensation plan liability
 
(5,433
)
 
404

 
(5,837
)
 
6,014

Transaction related costs, impairment loss and other
 
(149
)
 
(13,156
)
 
13,007

 
(14,637
)
Total expenses
 
(427,206
)
 
(401,573
)
 
(25,633
)
 
(408,746
)
 
 
 
 
 
 
 
 
 
Income (loss) from partially owned entities
 
7,320

 
(9,904
)
 
17,224

 
3,090

Loss from real estate fund investments
 
(167
)
 
(8,807
)
 
8,640

 
(51,258
)
Interest and other investment income (loss), net
 
5,045

 
(24,384
)
 
29,429

 
7,656

Income (loss) from deferred compensation plan assets
 
5,433

 
(404
)
 
5,837

 
(6,014
)
Interest and debt expense
 
(102,463
)
 
(88,166
)
 
(14,297
)
 
(83,175
)
Purchase price fair value adjustment
 
—

 
—

 
—

 
44,060

Net gains on disposition of wholly owned and partially owned assets
 
220,294

 
—

 
220,294

 
81,203

Income before income taxes
 
242,924

 
3,199

 
239,725

 
130,233

Income tax expense
 
(29,743
)
 
(2,554
)
 
(27,189
)
 
(32,669
)
Income from continuing operations
 
213,181

 
645

 
212,536

 
97,564

(Loss) income from discontinued operations
 
(137
)
 
(363
)
 
226

 
257

Net income
 
213,044

 
282

 
212,762

 
97,821

Less net (income) loss attributable to noncontrolling interests in:
 
 
 
 
 
 
 
 
Consolidated subsidiaries
 
(6,820
)
 
8,274

 
(15,094
)
 
21,886

Operating Partnership
 
(12,202
)
 
1,124

 
(13,326
)
 
(6,680
)
Net income attributable to Vornado
 
194,022

 
9,680

 
184,342

 
113,027

Preferred share dividends
 
(12,534
)
 
(13,035
)
 
501

 
(12,533
)
Preferred share issuance costs
 
—

 
(14,486
)
 
14,486

 
—

Net income (loss) attributable to common shareholders
 
$
181,488

 
$
(17,841
)
 
$
199,329

 
$
100,494

 
 
 
 
 
 
 
 
 
Capitalized expenditures: Leasing payroll(3)
 
$
—

 
$
1,348

 
$
(1,348
)
 
$
1,655

                                        Development payroll
 
4,590

 
1,709

 
2,881

 
4,124

                                        Interest and debt expense
 
23,325

 
14,726

 
8,599

 
23,448

_________________
(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) Primarily due to $16,211 of non-cash expense for the accelerated vesting of previously issued OP Units and Vornado restricted stock due to the removal of the time-based vesting requirement to participants who have reached 65 years of age. The right to sell such awards remains subject to original terms of grant. The increase in expense in the first quarter of 2019 will be completely offset by lower non-cash stock-based compensation expense of $2,578 in each of the second, third and fourth quarters of 2019 and $8,477 thereafter.
(3) Beginning January 1, 2019, we no longer capitalize internal leasing costs in accordance with Accounting Standard Update 2016-02, Leases.

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NET INCOME (LOSS) ATTRIBUTABLE TO COMMON SHAREHOLDERS BY SEGMENT
(unaudited and in thousands)
 
 
For the Three Months Ended March 31, 2019
 
 
Total
 
New York
 
Other
Property rentals(1)
 
$
428,380

 
$
347,095

 
$
81,285

Tenant expense reimbursements(1)
 
66,112

 
54,247

 
11,865

Straight-lining of rents
 
(1,140
)
 
(19
)
 
(1,121
)
Amortization of acquired below-market leases, net
 
6,525

 
6,314

 
211

Total rental revenues
 
499,877

 
407,637

 
92,240

Fee and other income:
 
 
 
 
 
 
BMS cleaning fees
 
29,785

 
31,757

 
(1,972
)
Management and leasing fees
 
2,237

 
2,251

 
(14
)
Lease termination fees
 
562

 
488

 
74

Other income
 
2,207

 
1,152

 
1,055

Total revenues
 
534,668

 
443,285

 
91,383

Operating expenses
 
(246,895
)
 
(198,095
)
 
(48,800
)
Depreciation and amortization
 
(116,709
)
 
(94,811
)
 
(21,898
)
General and administrative
 
(58,020
)
 
(16,564
)
 
(41,456
)
Expense from deferred compensation plan liability
 
(5,433
)
 
—

 
(5,433
)
Transaction related costs and other
 
(149
)
 
—

 
(149
)
Total expenses
 
(427,206
)
 
(309,470
)
 
(117,736
)
 
 
 
 
 
 
 
Income from partially owned entities
 
7,320

 
5,405

 
1,915

Loss from real estate fund investments
 
(167
)
 
—

 
(167
)
Interest and other investment income, net
 
5,045

 
1,567

 
3,478

Income from deferred compensation plan assets
 
5,433

 
—

 
5,433

Interest and debt expense
 
(102,463
)
 
(54,727
)
 
(47,736
)
Net gains on disposition of wholly owned and partially owned assets
 
220,294

 
—

 
220,294

Income before income taxes
 
242,924

 
86,060

 
156,864

Income tax expense
 
(29,743
)
 
(1,445
)
 
(28,298
)
Income from continuing operations
 
213,181

 
84,615

 
128,566

Loss from discontinued operations
 
(137
)
 
—

 
(137
)
Net income
 
213,044

 
84,615

 
128,429

Less net income attributable to noncontrolling interests in:
 
 
 
 
 
 
Consolidated subsidiaries
 
(6,820
)
 
(1,825
)
 
(4,995
)
Operating Partnership
 
(12,202
)
 
—

 
(12,202
)
Net income attributable to Vornado
 
194,022

 
82,790

 
111,232

Preferred share dividends
 
(12,534
)
 
—

 
(12,534
)
Net income attributable to common shareholders for the three months ended March 31, 2019
 
$
181,488

 
$
82,790

 
$
98,698

Net (loss) income attributable to common shareholders for the three months ended March 31, 2018
 
$
(17,841
)
 
$
73,938

 
$
(91,779
)
_________________
(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.


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NET OPERATING INCOME AT SHARE BY SEGMENT
(unaudited and in thousands)
 
 
 
 
 
 
 
 
 
 
 
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 March 31, 2018
 
Total
 
New York
 
Other
Total revenues
$
536,437

 
$
448,484

 
$
87,953

Operating expenses
237,602

 
197,916

 
39,686

NOI - consolidated
298,835

 
250,568

 
48,267

Deduct: NOI attributable to noncontrolling interests in consolidated subsidiaries
(17,312
)
 
(11,745
)
 
(5,567
)
Add: NOI from partially owned entities
67,513

 
49,773

 
17,740

NOI at share
349,036

 
288,596

 
60,440

Non-cash adjustments for straight-line rents, amortization of acquired below-market leases, net, and other
(17,948
)
 
(17,323
)
 
(625
)
NOI at share - cash basis
$
331,088

 
$
271,273

 
$
59,815


 
For the Three Months Ended December 31, 2018
 
Total
 
New York
 
Other
Total revenues
$
543,417

 
$
466,554

 
$
76,863

Operating expenses
254,320

 
206,696

 
47,624

NOI - consolidated
289,097

 
259,858

 
29,239

Deduct: NOI attributable to noncontrolling interests in consolidated subsidiaries
(19,771
)
 
(13,837
)
 
(5,934
)
Add: NOI from partially owned entities
60,205

 
49,178

 
11,027

NOI at share
329,531

 
295,199

 
34,332

Non-cash adjustments for straight-line rents, amortization of acquired below-market leases, net, and other
(5,532
)
 
(6,266
)
 
734

NOI at share - cash basis
$
323,999

 
$
288,933

 
$
35,066

________________________________________
See Appendix page vii for details of NOI at share components.



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NET OPERATING INCOME AT SHARE BY SUBSEGMENT
(unaudited and in thousands)
 
 
 
 
 
 
 
 
 
 
 
For the Three Months Ended
 
 
March 31,
 
December 31,
2018
 
 
2019
 
2018
 
 
NOI at share:
 
 
 
 
 
 
New York:
 
 
 
 
 
 
Office
$
183,540

 
$
187,156

 
$
186,832

 
Retail
88,267

 
87,909

 
85,549

 
Residential
6,045

 
6,141

 
5,834

 
Alexander's Inc ("Alexander's")
11,322

 
11,575

 
11,023

 
Hotel Pennsylvania
(5,816
)
 
(4,185
)
 
5,961

 
Total New York
283,358

 
288,596

 
295,199

 
 
 
 
 
 
 
 
Other:
 
 
 
 
 
 
theMART
23,523

 
26,875

 
10,981

(1) 
555 California Street
14,501

 
13,511

 
14,005

 
Other investments(2)
16,390

 
20,054

 
9,346

 
Total Other
54,414

 
60,440

 
34,332

 
 
 
 
 
 
 
 
NOI at share
$
337,772

 
$
349,036

 
$
329,531

 
NOI at share - cash basis:
 
 
 
 
 
 
New York:
 
 
 
 
 
 
Office
$
184,370

 
$
178,199

 
$
185,624

 
Retail
80,936

 
79,589

 
80,515

 
Residential
5,771

 
5,599

 
5,656

 
Alexander's
11,527

 
12,039

 
11,129

 
Hotel Pennsylvania
(5,864
)
 
(4,153
)
 
6,009

 
Total New York
276,740

 
271,273

 
288,933

 
 
 
 
 
 
 
 
Other:
 
 
 
 
 
 
theMART
24,912

 
27,079

 
12,758

(1) 
555 California Street
14,745

 
12,826

 
13,784

 
Other investments(2)
16,194

 
19,910

 
8,524

 
Total Other
55,851

 
59,815

 
35,066

 
 
 
 
 
 
 
 
NOI at share - cash basis
$
332,591

 
$
331,088

 
$
323,999

 
_________________
(1) Includes additional real estate tax expense accruals of $12,124 for the three months ended December 31, 2018 due to an increase in the tax-assessed value of theMART.
(2) The three months ended March 31, 2018 includes NOI at share and NOI at share - cash basis of $5,273 and $5,180, respectively, from 666 Fifth Avenue Office Condominium (sold on August 3, 2018).


- 9 -

 vornadologoa02.jpg

SAME STORE NOI AT SHARE AND NOI AT SHARE - CASH BASIS (NON-GAAP)
(unaudited)
 
 
 
 
 
 
 
 
Total
 
New York(2)
 
theMART
 
555 California Street
Same store NOI at share % (decrease) increase(1):
 
 
 
 
 
 
 
 
Three months ended March 31, 2019 compared to March 31, 2018
(0.1
)%
 
(0.1
)%
 
(4.3
)%
 
7.3
%
 
Three months ended March 31, 2019 compared to December 31, 2018
1.0
 %
 
(3.0
)%
 
106.2
 %
(3) 
3.4
%
 
 
 
 
 
 
 
 
 
Same store NOI at share - cash basis % increase (decrease)(1):
 
 
 
 
 
 
 
 
Three months ended March 31, 2019 compared to March 31, 2018
3.0
 %
 
2.6
 %
 
0.9
 %
 
15.0
%
 
Three months ended March 31, 2019 compared to December 31, 2018
0.2
 %
 
(4.2
)%
 
88.6
 %
(3) 
6.9
%
____________________
(1)
See pages viii through xi in the Appendix for same store NOI at share and same store NOI at share - cash basis reconciliations.
 
 
 
Increase
 
(2)
Excluding Hotel Pennsylvania, same store NOI at share % increase:
 
 
 
Three months ended March 31, 2019 compared to March 31, 2018
0.5
%
 
 
Three months ended March 31, 2019 compared to December 31, 2018
1.2
%
 
 
 
 
 
 
Excluding Hotel Pennsylvania, same store NOI at share - cash basis % increase:
 
 
 
Three months ended March 31, 2019 compared to March 31, 2018
3.3
%
 
 
Three months ended March 31, 2019 compared to December 31, 2018
0.2
%
 
 
 
 
 
(3)
The three months ended December 31, 2018 includes an additional $12,124,000 real estate tax expense accrual due to an increase in the tax-assessed value of theMART.

- 10 -

 vornadologoa02.jpg

NOI AT SHARE BY REGION
(unaudited)
 
 
 
 
 
 
 
 
 
 
 
For the Three Months Ended March 31,
 
2019
 
2018
Region:
 
 
 
New York City metropolitan area
88
%
 
88
%
Chicago, IL
7
%
 
8
%
San Francisco, CA
5
%
 
4
%
 
100
%
 
100
%


- 11 -

 vornadologoa02.jpg

CONSOLIDATED BALANCE SHEETS
(unaudited and in thousands)
 
As of
 
Increase
(Decrease)
 
March 31, 2019
 
December 31, 2018
 
ASSETS
 
 
 
 
 
Real estate, at cost:
 
 
 
 
 
Land
$
2,608,770

 
$
3,306,280

 
$
(697,510
)
Buildings and improvements
7,821,301

 
10,110,992

 
(2,289,691
)
Development costs and construction in progress
1,961,512

 
2,266,491

 
(304,979
)
Moynihan Train Hall development expenditures
550,996

 
445,693

 
105,303

Leasehold improvements and equipment
115,756

 
108,427

 
7,329

Total
13,058,335

 
16,237,883

 
(3,179,548
)
Less accumulated depreciation and amortization
(2,845,120
)
 
(3,180,175
)
 
335,055

Real estate, net
10,213,215

 
13,057,708

 
(2,844,493
)
Assets held for sale
3,027,058

 
—

 
3,027,058

Right-of-use assets
457,662

 
—

 
457,662

Cash and cash equivalents
307,047

 
570,916

 
(263,869
)
Restricted cash
593,759

 
145,989

 
447,770

Marketable securities
39,866

 
152,198

 
(112,332
)
Tenant and other receivables
73,404

 
73,322

 
82

Investments in partially owned entities
730,264

 
858,113

 
(127,849
)
Real estate fund investments
322,858

 
318,758

 
4,100

220 Central Park South condominium units ready for sale
229,567

 
99,627

 
129,940

Receivable arising from the straight-lining of rents
766,634

 
935,131

 
(168,497
)
Deferred leasing costs, net
345,241

 
400,313

 
(55,072
)
Identified intangible assets, net
34,161

 
136,781

 
(102,620
)
Other assets
497,219

 
431,938

 
65,281

Total Assets
$
17,637,955

 
$
17,180,794

 
$
457,161

LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND EQUITY
 
 
 
 
 
Liabilities:
 
 
 
 
 
Mortgages payable, net
$
6,519,189

 
$
8,167,798

 
$
(1,648,609
)
Senior unsecured notes, net
845,261

 
844,002

 
1,259

Unsecured term loan, net
745,076

 
744,821

 
255

Unsecured revolving credit facilities
530,000

 
80,000

 
450,000

Liabilities related to assets held for sale
1,097,350

 
—

 
1,097,350

Lease liabilities
484,173

 
—

 
484,173

Moynihan Train Hall obligation
550,996

 
445,693

 
105,303

Accounts payable and accrued expenses
442,496

 
430,976

 
11,520

Deferred revenue
71,328

 
167,730

 
(96,402
)
Deferred compensation plan
101,922

 
96,523

 
5,399

Other liabilities
292,187

 
311,806

 
(19,619
)
Total liabilities
11,679,978

 
11,289,349

 
390,629

Redeemable noncontrolling interests
867,085

 
783,562

 
83,523

Shareholders' equity
4,443,992

 
4,465,231

 
(21,239
)
Noncontrolling interests in consolidated subsidiaries
646,900

 
642,652

 
4,248

Total liabilities, redeemable noncontrolling interests and equity
$
17,637,955

 
$
17,180,794

 
$
457,161


- 12 -

 vornadologoa02.jpg

LEASING ACTIVITY
(unaudited)

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.

(square feet in thousands)
 
New York
 
 
 
555 California Street
 
 
Office
 
Retail
 
theMART
 
Three Months Ended March 31, 2019
 
 
 
 
 
 
 
 
Total square feet leased
 
396

 
49

 
159

 
61

Our share of square feet leased:
 
350

 
43

 
159

 
43

Initial rent(1)
 
$
75.91

 
$
113.37

 
$
46.67

 
$
81.05

Weighted average lease term (years)
 
9.0

 
3.4

 
7.0

 
5.1

Second generation relet space:
 
 
 
 
 
 
 
 
Square feet
 
312

 
38

 
157

 
43

GAAP basis:
 
 
 
 
 
 
 
 
Straight-line rent(2)
 
$
73.27

 
$
116.99

 
$
45.37

 
$
84.32

Prior straight-line rent
 
$
72.64

 
$
114.48

 
$
40.76

 
$
49.92

Percentage increase
 
0.9
%
 
2.2
 %
 
11.3
%
 
68.9
%
Cash basis (non-GAAP):
 
 
 
 
 
 
 
 
Initial rent(1)
 
$
74.43

 
$
115.36

 
$
46.59

 
$
81.05

Prior escalated rent
 
$
73.13

 
$
126.09

 
$
43.85

 
$
58.92

Percentage increase (decrease)
 
1.8
%
 
(8.5
)%
 
6.2
%
 
37.6
%
Tenant improvements and leasing commissions:
 
 
 
 
 
 
 
 
Per square foot
 
$
87.05

 
$
20.15

 
$
35.20

 
$
49.14

Per square foot per annum
 
$
9.67

 
$
5.93

 
$
5.03

 
$
9.64

Percentage of initial rent
 
12.7
%
 
5.2
 %
 
10.8
%
 
11.9
%
____________________
(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.



- 13 -

 vornadologoa02.jpg

LEASE EXPIRATIONS
NEW YORK SEGMENT
(unaudited)
 
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
 
16,000

 
$
1,088,000

 
$
68.00

 
0.1
%
 
 
 
 
 
 
 
 
 
 
 
Second Quarter 2019
 
175,000

 
13,212,000

 
75.50

 
1.1
%
 
Third Quarter 2019
 
29,000

 
1,843,000

 
63.55

 
0.2
%
 
Fourth Quarter 2019
 
134,000

 
9,729,000

 
72.60

 
0.9
%
 
Total 2019
 
338,000

 
24,784,000

 
73.33

 
2.2
%
 
First Quarter 2020
 
538,000

 
33,716,000

 
62.67

 
3.0
%
 
Remaining 2020
 
591,000

 
44,000,000

 
74.45

 
3.8
%
 
2021
 
1,247,000

 
95,816,000

 
76.84

 
8.3
%
 
2022
 
685,000

 
44,954,000

 
65.63

 
3.9
%
 
2023
 
1,960,000

 
160,390,000

 
81.83

 
13.9
%
 
2024
 
1,383,000

 
110,612,000

 
79.98

 
9.6
%
 
2025
 
798,000

 
59,758,000

 
74.88

 
5.2
%
 
2026
 
1,253,000

 
95,504,000

 
76.22

 
8.3
%
 
2027
 
1,123,000

 
80,783,000

 
71.93

 
7.0
%
 
2028
 
985,000

 
69,311,000

 
70.37

 
6.0
%
 
2029
 
738,000

 
57,651,000

 
78.12

 
5.0
%
 
Thereafter
 
4,184,000

 
272,279,000

 
65.08

 
23.7
%
 
 
 
 
 
 
 
 
 
 
Retail:
Month to Month
 
50,000

 
$
8,286,000

 
$
165.72

 
1.8
%
 
 
 
 
 
 
 
 
 
 
 
Second Quarter 2019
 
12,000

 
2,182,000

 
181.83

 
0.5
%
 
Third Quarter 2019
 
20,000

 
9,531,000

 
476.55

 
2.1
%
 
Fourth Quarter 2019
 
58,000

 
10,827,000

 
186.67

 
2.3
%
 
Total 2019
 
90,000

 
22,540,000

 
250.44

 
4.9
%
 
First Quarter 2020
 
19,000

 
4,971,000

 
261.63

 
1.1
%
 
Remaining 2020
 
62,000

 
8,759,000

 
141.27

 
1.9
%
 
2021
 
92,000

 
11,997,000

 
130.40

 
2.6
%
 
2022
 
29,000

 
7,285,000

 
251.21

 
1.6
%
 
2023
 
110,000

 
45,183,000

 
410.75

 
9.8
%
 
2024
 
303,000

 
86,646,000

 
285.96

 
18.7
%
 
2025
 
42,000

 
19,568,000

 
465.90

 
4.2
%
 
2026
 
134,000

 
44,569,000

 
332.60

 
9.6
%
 
2027
 
32,000

 
23,021,000

 
719.41

 
5.0
%
 
2028
 
47,000

 
18,794,000

 
399.87

 
4.1
%
 
2029
 
221,000

 
49,604,000

 
224.45

 
10.8
%
 
Thereafter
 
687,000

 
110,188,000

 
160.39

 
23.9
%
____________________
(1)
Excludes storage, vacancy and other.


- 14 -

 vornadologoa02.jpg

LEASE EXPIRATIONS
theMART
(unaudited)
 
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
 
2,000

 
$
75,000

 
$
37.50

 
0.1
%
 
 
 
 
 
 
 
 
 
 
 
Second Quarter 2019
 
3,000

 
133,000

 
44.33

 
0.1
%
 
Third Quarter 2019
 
20,000

 
1,075,000

 
53.75

 
0.6
%
 
Fourth Quarter 2019
 
49,000

 
2,649,000

 
54.06

 
1.6
%
 
Total 2019
 
72,000

 
3,857,000

 
53.57

 
2.3
%
 
First Quarter 2020
 
111,000

 
5,105,000

 
45.99

 
3.1
%
 
Remaining 2020
 
153,000

 
7,975,000

 
52.12

 
4.8
%
 
2021
 
328,000

 
16,172,000

 
49.30

 
9.7
%
 
2022
 
603,000

 
29,160,000

 
48.36

 
17.5
%
 
2023
 
303,000

 
15,541,000

 
51.29

 
9.3
%
 
2024
 
301,000

 
14,680,000

 
48.77

 
8.8
%
 
2025
 
337,000

 
17,551,000

 
52.08

 
10.5
%
 
2026
 
254,000

 
12,169,000

 
47.91

 
7.3
%
 
2027
 
108,000

 
5,480,000

 
50.74

 
3.3
%
 
2028
 
642,000

 
28,281,000

 
44.05

 
17.0
%
 
2029
 
61,000

 
2,829,000

 
46.38

 
1.7
%
 
Thereafter
 
168,000

 
7,605,000

 
45.27

 
4.6
%
____________________
(1)    Excludes storage, vacancy and other.




- 15 -

 vornadologoa02.jpg

LEASE EXPIRATIONS
555 California Street
(unaudited)
 
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
 
—

 
$
—

 
$
—

 
—
%
 
 
 
 
 
 
 
 
 
 
 
Second Quarter 2019
 
—

 
—

 
—

 
—
%
 
Third Quarter 2019
 
3,000

 
249,000

 
83.00

 
0.3
%
 
Fourth Quarter 2019
 
—

 
—

 
—

 
—
%
 
Total 2019
 
3,000

 
249,000

 
83.00

 
0.3
%
 
First Quarter 2020
 
21,000

 
1,530,000

 
72.86

 
1.6
%
 
Remaining 2020
 
60,000

 
3,899,000

 
64.98

 
4.1
%
 
2021
 
76,000

 
5,338,000

 
70.24

 
5.7
%
 
2022
 
36,000

 
2,822,000

 
78.39

 
3.0
%
 
2023
 
133,000

 
9,355,000

 
70.34

 
9.9
%
 
2024
 
61,000

 
5,375,000

 
88.11

 
5.7
%
 
2025
 
384,000

 
27,754,000

 
72.28

 
29.4
%
 
2026
 
140,000

 
10,410,000

 
74.36

 
11.0
%
 
2027
 
69,000

 
5,706,000

 
82.70

 
6.1
%
 
2028
 
20,000

 
1,442,000

 
72.10

 
1.5
%
 
2029
 
74,000

 
6,657,000

 
89.96

 
7.1
%
 
Thereafter
 
161,000

 
13,755,000

 
85.43

 
14.6
%
____________________
(1)    Excludes storage, vacancy and other.




- 16 -

 vornadologoa02.jpg

TRAILING TWELVE MONTH PRO-FORMA CASH NET OPERATING INCOME AT SHARE
(unaudited and in thousands)
 
 
For the Trailing Twelve Months Ended March 31, 2019
 
For the Trailing
Twelve Months Ended
December 31, 2018
 
NOI at Share - Cash Basis
 
Adjustments
 
Pro Forma NOI at Share -
Cash Basis
 
Pro Forma NOI at Share - Cash Basis
Office:
 
 
 
 
 
 
 
New York
$
732,279

 
$
(26,417
)
(1) 
$
705,862

 
$
698,500

theMART
91,903

 
12,118

(2) 
104,021

 
106,188

555 California Street
55,407

 
—

 
55,407

 
53,488

Total Office
879,589

 
(14,299
)
 
865,290

 
858,176

New York - Retail
325,566

 
—

 
325,566

 
324,219

New York - Residential
22,248

 
—

 
22,248

 
22,076

 
$
1,227,403

 
$
(14,299
)
 
$
1,213,104

 
$
1,204,471

________________________________________
(1)
Adjustment to deduct BMS NOI for the trailing twelve months ended March 31, 2019.
(2)
Adjustment to offset the accrual in Q4 2018 for the annual real estate tax increase which is billed to tenants throughout 2019.



- 17 -

 vornadologoa02.jpg

CAPITAL STRUCTURE
(unaudited and in thousands, except per share and unit amounts)
 
 
 
 
 
 
 
As of
March 31, 2019
 
 
Debt (contractual balances) (non-GAAP):
 
 
 
 
 
 
 
Consolidated debt (1):
 
 
 
 
 
 
 
Mortgages payable
 
 
 
 
$
6,556,034

 
 
Senior unsecured notes
 
 
 
 
850,000

 
 
$750 Million unsecured term loan
 
 
 
 
750,000

 
 
$2.75 Billion unsecured revolving credit facilities
 
 
 
 
530,000

 
 
 
 
 
 
 
8,686,034

 
 
Pro rata share of debt of non-consolidated entities(2)(3)
 
 
 
 
2,459,400

 
 
Less: Noncontrolling interests' share of consolidated debt
        (primarily 1290 Avenue of the Americas and 555 California Street)
 
 
 
 
(480,071
)
 
 
 
 
 
 
 
10,665,363

 
(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, 2019 Common Share Price
 
 
 
 
Equity:
 
 
 
 
 
 
 
Common shares
190,761

 
$
67.44

 
12,864,922

 
 
Class A units
12,144

 
67.44

 
818,991

 
 
Convertible share equivalents:
 
 
 
 
 
 
 
Equity awards - unit equivalents
645

 
67.44

 
43,499

 
 
D-13 preferred units
692

 
67.44

 
46,668

 
 
G1-G4 units
58

 
67.44

 
3,912

 
 
Series A preferred shares
34

 
67.44

 
2,293

 
 
 
 
 
 
 
13,780,285

 
(C)
Total Market Capitalization (A+B+C)
 
 
 
 
$
25,369,683

 
 
____________________
(1)
See reconciliation of consolidated debt, net (GAAP) to contractual debt (non-GAAP) on page xii in the Appendix.
(2)
As a result of the bankruptcy plan of reorganization for Toys "R" Us, Inc. ("Toys") being declared effective and our stock in Toys being canceled, we no longer hold an investment in Toys. Accordingly, no Toys debt is included in our pro rata share of debt of non-consolidated entities.
(3)
Our pro rata share of debt of non-consolidated entities is net of our $63,409 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.

- 18 -

 vornadologoa02.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
2019
 
Fourth Quarter
2018
 
Third Quarter
2018
 
Second Quarter
2018
High price
 
$
70.54

 
$
73.06

 
$
77.59

 
$
74.28

Low price
 
$
59.95

 
$
59.48

 
$
69.50

 
$
64.53

Closing price - end of quarter
 
$
67.44

 
$
62.03

 
$
73.00

 
$
73.92

 
 
 
 
 
 
 
 
 
 
 
 
 
Annualized dividend per share
 
$
2.64

 
$
2.52

 
$
2.52

 
$
2.52

 
 
 
 
 
 
 
 
 
 
 
 
 
Annualized dividend yield - on closing price
 
 
3.9
%
 
 
4.1
%
 
 
3.5
%
 
 
3.4
%
 
 
 
 
 
 
 
 
 
 
 
 
 
Outstanding shares, Class A units and convertible preferred units as converted (in thousands)
 
 
204,336

 
 
203,930

 
 
203,604

 
 
203,577

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

 
$
12.6 Billion

 
$
14.9 Billion

 
$
15.0 Billion


- 19 -

 vornadologoa02.jpg

DEBT ANALYSIS
 
 
 
 
 
 
 
 
 
 
 
(unaudited and in thousands)
 
 
 
 
 
 
 
 
 
 
 
 
As of March 31, 2019
 
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)
$
8,686,034

 
3.76%
 
$
2,475,508

 
4.04%
 
$
6,210,526

 
3.65%
Pro rata share of debt of non-consolidated entities(2)(3)
2,459,400

 
4.16%
 
1,266,752

 
4.10%
 
1,192,648

 
4.23%
Total
11,145,434

 
3.85%
 
3,742,260

 
4.06%
 
7,403,174

 
3.75%
Less: Noncontrolling interests' share of consolidated debt (primarily 1290 Avenue of the Americas and 555 California Street)
(480,071
)
 
 
 
(28,194
)
 
 
 
(451,877
)
 
 
Company's pro rata share of total debt
$
10,665,363

 
3.84%
 
$
3,714,066

 
4.05%
 
$
6,951,297

 
3.73%
Debt Covenant Ratios:(4)
Senior Unsecured Notes
 
Unsecured Revolving Credit Facilities
and Unsecured Term Loan
 
 
 
Actual
 
 
Required
 
Due 2022
 
Due 2025
 
Required
 
Actual
Total outstanding debt/total assets(5)
Less than 65%
 
55%
 
52%
 
Less than 60%
 
41%
Secured debt/total assets
Less than 50%
 
41%
 
39%
 
Less than 50%
 
32%
Interest coverage ratio (annualized combined EBITDA to annualized interest expense)
Greater than 1.50
 
2.19
 
2.19
 
 
 
N/A
Fixed charge coverage
 
 
N/A
 
N/A
 
Greater than 1.40
 
2.30
Unencumbered assets/unsecured debt
Greater than 150%
 
316%
 
333%
 
 
 
N/A
Unsecured debt/cap value of unencumbered assets
 
 
N/A
 
N/A
 
Less than 60%
 
21%
Unencumbered coverage ratio
 
 
N/A
 
N/A
 
Greater than 1.50
 
6.39
Unencumbered EBITDA (non-GAAP):(5)
Q1 2019
 
 
Annualized
 
New York
$
422,540

 
Other
18,868

 
Total
$
441,408

 
____________________
(1)
See reconciliation of consolidated debt, net (GAAP) to contractual debt (non-GAAP) on page xii in the Appendix.
(2)
As a result of the bankruptcy plan of reorganization for Toys "R" Us, Inc. ("Toys") being declared effective and our stock in Toys being canceled, we no longer hold an investment in Toys. Accordingly, no Toys debt is included in our pro rata share of debt of non-consolidated entities.
(3)
Our pro rata share of debt of non-consolidated entities is net of our $63,409 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 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.
(5)
Total assets include EBITDA (as defined) capped at 7.5% under the senior unsecured notes due 2022, 7.0% under the senior unsecured notes due 2025 and 6.0% under the unsecured revolving credit facilities and unsecured term loan.




- 20 -

 vornadologoa02.jpg

DEBT MATURITIES (CONTRACTUAL BALANCES) (NON-GAAP)
(unaudited and in thousands)
Property
 
Maturity
Date (1)
 
Spread over
LIBOR
 
Interest
Rate
 
2019
 
2020
 
2021
 
2022
 
2023
 
Thereafter
 
Total
220 Central Park South
 
09/20
 
L+200
 
4.50%
 
$
—

 
$
313,423

 
$
—

 
$
—

 
$
—

 
$
—

 
$
313,423

Eleven Penn Plaza
 
12/20
 
 
 
3.95%
 
—

 
450,000

 
—

 
—

 
—

 
—

 
450,000

888 Seventh Avenue
 
12/20
 
 
 
3.15%
(2)
—

 
375,000

 
—

 
—

 
—

 
—

 
375,000

Borgata Land
 
02/21
 
 
 
5.14%
 
—

 
—

 
54,269

 
—

 
—

 
—

 
54,269

770 Broadway
 
03/21
 
 
 
2.56%
(3)
—

 
—

 
700,000

 
—

 
—

 
—

 
700,000

909 Third Avenue
 
05/21
 
 
 
3.91%
 
—

 
—

 
350,000

 
—

 
—

 
—

 
350,000

606 Broadway
 
05/21
 
L+300
 
5.49%
 
—

 
—

 
56,389

 
—

 
—

 
—

 
56,389

555 California Street
 
09/21
 
 
 
5.10%
 
—

 
—

 
556,257

 
—

 
—

 
—

 
556,257

theMART
 
09/21
 
 
 
2.70%
 
—

 
—

 
675,000

 
—

 
—

 
—

 
675,000

Two Penn Plaza
 
12/21
 
L+165
 
4.14%
 
—

 
—

 
575,000

 
—

 
—

 
—

 
575,000

Senior unsecured notes due 2022
 
01/22
 
 
 
5.00%
 
—

 
—

 
—

 
400,000

(4) 
—

 
—

 
400,000

1290 Avenue of the Americas
 
11/22
 
 
 
3.34%
 
—

 
—

 
—

 
950,000

 
—

 
—

 
950,000

$1.25 Billion unsecured revolving credit facility
 
01/23
 
L+100
 
3.48%
 
—

 
—

 
—

 
—

 
80,000

 
—

 
80,000

Unsecured Term Loan
 
02/24
 
 
 
3.87%
(5)
—

 
—

 
—

 
—

 
—

 
750,000

 
750,000

435 Seventh Avenue
 
02/24
 
L+130
 
3.78%
 
—

 
—

 
—

 
—

 
—

 
95,696

 
95,696

$1.5 Billion unsecured revolving credit facility
 
03/24
 
L+90
 
3.46%
 
—

 
—

 
—

 
—

 
—

 
450,000

 
450,000

150 West 34th Street
 
05/24
 
L+188
 
4.36%
 
—

 
—

 
—

 
—

 
—

 
205,000

 
205,000

33-00 Northern Boulevard
 
01/25
 
 
 
4.14%
(6)
—

 
—

 
—

 
—

 
—

 
100,000

 
100,000

Senior unsecured notes due 2025
 
01/25
 
 
 
3.50%
 
—

 
—

 
—

 
—

 
—

 
450,000

 
450,000

4 Union Square South
 
08/25
 
L+140
 
3.89%
 
—

 
—

 
—

 
—

 
—

 
120,000

 
120,000

100 West 33rd Street
 
04/26
 
L+155
 
4.03%
 
—

 
—

 
—

 
—

 
—

 
580,000

 
580,000

350 Park Avenue
 
01/27
 
 
 
3.92%
 
—

 
—

 
—

 
—

 
—

 
400,000

 
400,000

 
 
 
 
 
 
 
 
$
—

 
$
1,138,423

 
$
2,966,915

 
$
1,350,000

 
$
80,000

 
$
3,150,696

 
$
8,686,034

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Weighted average rate
 
 
 
 
 
 
 
—
%
 
3.84
%
 
3.64
%
 
3.83
%
 
3.48
%
 
3.83
%
 
3.76
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fixed rate debt
 
 
 
 
 
 
 
$
—

 
$
825,000

 
$
2,335,526

 
$
1,350,000

 
$
—

 
$
1,700,000

 
$
6,210,526

Fixed weighted average rate expiring
 
 
 
 
 
 
 
—
%
 
3.59
%
 
3.47
%
 
3.83
%
 
—
%
 
3.80
%
 
3.65
%
Floating rate debt
 
 
 
 
 
 
 
$
—

 
$
313,423

 
$
631,389

 
$
—

 
$
80,000

 
$
1,450,696

 
$
2,475,508

Floating weighted average rate expiring
 
 
 
 
 
 
 
—
%
 
4.50
%
 
4.26
%
 
—
%
 
3.48
%
 
3.87
%
 
4.04
%
____________________
(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 3.15% through December 2020. The rate was swapped from LIBOR plus 1.60% (4.09% as of March 31, 2019).
(3)
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% (4.23% as of March 31, 2019).
(4)
Redeemed on April 1, 2019 at a redemption price of 105.51% of the principal amount plus accrued interest.
(5)
Pursuant to an existing swap agreement, the loan bears interest at 3.87% through October 2023. The rate was swapped from LIBOR plus 1.00% (3.50% as of March 31, 2019).
(6)
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% (4.30% as of March 31, 2019).



- 21 -

 vornadologoa02.jpg

UNCONSOLIDATED JOINT VENTURES
 
 
 
 
 
 
(unaudited and in thousands)
 
 
 
 
 
 
Joint Venture Name
 
Asset
Category
 
Percentage
Ownership at
March 31, 2019
 
Company's
Carrying
Amount
 
Company's
Pro rata
Share of Debt(1)
 
100% of
Joint Venture Debt(1)
 
Maturity Date
 
Spread over LIBOR
 
Interest Rate
Alexander's(2)
 
Office/Retail
 
32.4%
 
$
106,786

 
$
315,847

 
$
974,836

 
Various
 
Various
 
Various
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Partially owned office buildings/land:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
One Park Avenue
 
Office/Retail
 
55.0%
 
134,797

 
165,000

 
300,000

 
03/21
 
L+175
 
4.23%
280 Park Avenue
 
Office/Retail
 
50.0%
 
113,035

 
600,000

 
1,200,000

 
09/24
 
L+173
 
4.22%
650 Madison Avenue
 
Office/Retail
 
20.1%
 
105,819

 
161,024

 
800,000

 
10/20
 
N/A
 
4.39%
512 West 22nd Street
 
Office
 
55.0%
 
60,109

 
50,924

 
92,590

 
11/20
 
L+265
 
5.14%
West 57th Street properties
 
Office/Retail/Land
 
50.0%
 
43,554

 
10,000

 
20,000

 
12/22
 
L+160
 
4.09%
825 Seventh Avenue
 
Office/Retail
 
50.0%
 
9,805

 
10,250

 
20,500

 
06/19
 
L+140
 
3.88%
61 Ninth Avenue
 
Office/Retail
 
45.1%
 
7,024

 
75,543

 
167,500

 
01/26
 
L+135
 
3.85%
Other
 
Office/Retail
 
Various
 
4,097

 
17,465

 
50,150

 
Various
 
Various
 
Various
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Other equity method investments:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Independence Plaza
 
Residential/Retail
 
50.1%
 
66,455

 
338,175

 
675,000

 
07/25
 
N/A
 
4.25%
Rosslyn Plaza
 
Office/Residential
 
43.7% to 50.4%
 
31,393

 
19,924

 
39,523

 
06/19
 
L+225
 
4.76%
Other
 
Various
 
Various
 
47,390

 
99,373

 
643,762

 
Various
 
Various
 
Various
 
 
 
 
 
 
$
730,264

 
$
1,863,525

 
$
4,983,861

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
330 Madison Avenue
 
Office/Retail
 
25.0%
 
$
(60,054
)
(3) 
$
125,000

 
$
500,000

 
08/24
 
N/A
 
3.43%
7 West 34th Street
 
Office/Retail
 
53.0%
 
(51,464
)
(3) 
159,000

 
300,000

 
06/26
 
N/A
 
3.65%
85 Tenth Avenue
 
Office/Retail
 
49.9%
 
(5,857
)
(3) 
311,875

 
625,000

 
12/26
 
N/A
 
4.55%
 
 
 
 
 
 
$
(117,375
)
 
$
595,875

 
$
1,425,000

 
 
 
 
 
 
____________________
(1)
Represents the contractual debt obligations. All amounts are non-recourse to us except the $300,000 mortgage loan on 7 West 34th Street which we guaranteed in connection with the sale of a 47.0% equity interest in May 2016.
(2)
Our pro rata share of debt of non-consolidated entities is net of our $63,409 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 negative basis results from distributions in excess of our investment.



- 22 -

 vornadologoa02.jpg

UNCONSOLIDATED JOINT VENTURES
(unaudited and in thousands)
 
 
 
 
 
 
 
Percentage
Ownership at
March 31, 2019
 
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,
 
 
2019
 
2018
 
2019
 
2018
Joint Venture Name
 
 
 
 
 
 
 
 
 
New York:
 
 
 
 
 
 
 
 
 
Alexander's
32.4%
 
$
5,717

 
$
(3,209
)
(1) 
$
11,322

 
$
11,575

280 Park Avenue
50.0%
 
(1,838
)
 
(264
)
 
9,548

 
9,490

One Park Avenue
55.0%
 
1,657

 
(4,898
)
(2) 
5,293

 
5,934

650 Madison Avenue
20.1%
 
(1,154
)
 
(1,063
)
 
2,458

 
2,505

7 West 34th Street
53.0%
 
1,027

 
1,029

 
3,526

 
3,437

330 Madison Avenue
25.0%
 
581

 
714

 
2,639

 
2,777

85 Tenth Avenue
49.9%
 
(179
)
 
(553
)
 
5,147

 
4,604

Independence Plaza
50.1%
 
114

 
1,484

 
6,899

 
7,049

West 57th Street properties
50.0%
 
(100
)
 
(81
)
 
258

 
198

825 Seventh Avenue
50.0%
 
26

 
692

 
—

 
846

Other, net
Various
 
(446
)
 
(789
)
 
2,485

 
1,358

 
 
 
5,405

 
(6,938
)
 
49,575

 
49,773

 
 
 
 
 
 
 
 
 
 
Other:
 
 
 
 
 
 
 
 
 
Alexander's corporate fee income
32.4%
 
1,057

 
1,208

 
476

 
1,208

UE(3)
N/A
 
773

 
(641
)
 
4,902

 
2,872

Rosslyn Plaza
43.7% to 50.4%
 
134

 
(284
)
 
1,336

 
1,033

PREIT(4)
N/A
 
51

 
(429
)
 
9,824

 
5,721

666 Fifth Avenue Office Condominium(5)
N/A
 
—

 
(3,492
)
 
—

 
5,273

Other, net
Various
 
(100
)
 
672

 
1,289

 
1,633

 
 
 
1,915

 
(2,966
)
 
17,827

 
17,740

 
 
 
 
 
 
 
 
 
 
Total
 
 
$
7,320

 
$
(9,904
)
 
$
67,402

 
$
67,513

____________________
(1)
Includes our $7,708 share of Alexander's disputed transfer tax related to the November 2012 sale of Kings Plaza Regional Shopping Center based on the precedent established by the New York City Tax Appeals Tribunal (the "Tax Tribunal") decision regarding One Park Avenue. See note below.
(2)
Includes our $4,978 share of disputed transfer tax related to the March 2011 acquisition of One Park Avenue which was recorded as a result of the Tax Tribunal's decision in the first quarter of 2018. We appealed the Tax Tribunal's decision to the New York State Supreme Court, Appellate Division, First Department ("Appellate Division"). Our appeal was heard on April 2, 2019, and on April 25, 2019 the Appellate Division entered a unanimous decision and order that confirmed the decision of the Tax Tribunal and dismissed our appeal. We are currently evaluating our options regarding this matter.
(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.
(5)
Sold on August 3, 2018.


- 23 -

 vornadologoa02.jpg

DEVELOPMENT/REDEVELOPMENT SUMMARY - AS OF MARCH 31, 2019
(unaudited and in thousands, except square feet)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(At Share)
 
 
 
 
 
 
 
Full
Quarter
Stabilized
Operations
 
 
 
 
Property
Rentable
Sq. Ft.
 
Excluding Land Costs
 
 
 
 
 
Available for Occupancy
 
Current Projects
 
Segment
 
 
Incremental
Budget
 
Amount
Expended
 
%
Complete
 
Start
 
 
220 CPS - residential condominiums
 
Other
 
397,000

 
$
1,400,000

 
$
1,251,815

(1) 
89.4%
 
Q3 2012
 
N/A
 
N/A
Farley Office and Retail Building - (95.0% interest)
 
New York
 
850,000

 
760,000

 
196,759

(2) 
25.9%
 
Q2 2017
 
Q3 2020
 
Q2 2022
PENN1(3)
 
New York
 
2,543,000

 
200,000

(4) 
41,872

 
20.9%
 
Q4 2018
 
N/A
 
N/A
512 West 22nd Street - office (55.0% interest)
 
New York
 
173,000

 
72,000

 
54,288

(5) 
75.4%
 
Q4 2015
 
Q1 2019
 
Q3 2020
345 Montgomery Street (555 California Street) (70.0% interest)
 
Other
 
78,000

 
32,000

 
16,442

(6) 
51.4%
 
Q1 2018
 
Q3 2019
 
Q3 2020
606 Broadway - office/retail (50.0% interest)
 
New York
 
35,000

 
30,000

 
26,920

(7) 
89.7%
 
Q2 2016
 
Q4 2018
 
Q2 2020
825 Seventh Avenue - office (50.0% interest)
 
New York
 
165,000

 
15,000

 
7,133

 
47.6%
 
Q2 2018
 
Q1 2020
 
Q1 2021
Total current projects
 
 
 
 
 
$
2,509,000

 
$
1,595,229

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Future Opportunities
 
Segment
 
Property
Zoning
Sq. Ft.
 
 
 
 
 

 
 
 
 
 
 
Penn District - multiple opportunities - office/residential/retail
 
New York
 
TBD
 
 
 
 
 
 
 
 
 
 
 
 
PENN2 - office/retail
 
New York
 
TBD
 
 
 
 
 
 
 
 
 
 
 
 
Hotel Pennsylvania
 
New York
 
2,052,000

 
 
 
 
 
 
 
 
 
 
 
 
260 Eleventh Avenue - office(8)
 
New York
 
280,000

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Undeveloped Land
 
 
 
 

 
 
 
 
 
 
 
 
 
 
 
 
29, 31, 33 West 57th Street (50.0% 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
 
TBD
 
 
 
 
 
 
 
 
 
 
 
 
Total undeveloped land
 
 
 
605,000

 
 
 
 
 
 
 
 
 
 
 
 
____________________
(1)
Excludes land and acquisition costs of $515,426.
(2)
Excludes our share of the upfront contribution of $230,000 and net of anticipated historic tax credits. The building and land are subject to a lease which expires in 2116.
(3)
The building is subject to a ground lease which expires in 2098 assuming all renewal options are exercised.
(4)
We expect the final budget will exceed $200,000 after anticipated scope changes.
(5)
Excludes land and acquisition costs of $57,000.
(6)
Excludes land and building costs of $31,000.
(7)
Excludes land and acquisition costs of $22,703.
(8)
The building is subject to a ground lease which expires in 2114.


- 24 -

 vornadologoa02.jpg

CAPITAL EXPENDITURES,
TENANT IMPROVEMENTS AND LEASING COMMISSIONS
 
CONSOLIDATED
 
(unaudited and in thousands)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended March 31, 2019
 
Year Ended December 31,
 
Amounts paid for capital expenditures:
 
 
2018
 
2017
 
Expenditures to maintain assets
 
$
26,377

 
$
92,386

 
$
111,629

 
Tenant improvements
 
9,479

 
100,191

 
128,287

 
Leasing commissions
 
5,122

 
33,254

 
36,447

 
Recurring tenant improvements, leasing commissions and other capital expenditures
 
40,978

 
225,831

 
276,363

 
Non-recurring capital expenditures
 
12,704

 
43,135

 
35,149

 
Total capital expenditures and leasing commissions
 
$
53,682

 
$
268,966

 
$
311,512

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended March 31, 2019
 
Year Ended December 31,
 
 
 
 
2018
 
2017
 
Amounts paid for development and redevelopment expenditures:
 
 
 
 
 
 
 
220 CPS
 
$
54,623

 
$
295,827

 
$
265,791

 
Farley Office and Retail Building
 
51,506

 
18,995

 
—

 
606 Broadway
 
4,980

 
15,959

 
15,997

 
PENN1
 
4,941

 
8,856

 
1,462

 
345 Montgomery Street (555 California Street)
 
3,250

 
18,187

 
5,950

 
1535 Broadway
 
1,031

 
8,645

 
1,982

 
Other
 
22,971

 
51,717

 
64,670

(1) 
 
 
$
143,302

 
$
418,186

 
$
355,852

 
____________________
(1)
Primarily relates to our former Washington, DC segment which was spun-off on July 17, 2017.



- 25 -

 vornadologoa02.jpg

CAPITAL EXPENDITURES,
TENANT IMPROVEMENTS AND LEASING COMMISSIONS
NEW YORK SEGMENT
(unaudited and in thousands)
 
 
 
 
 
 
 
 
 
Three Months Ended March 31, 2019
 
 Year Ended December 31,
Amounts paid for capital expenditures:
 
 
2018
 
2017
Expenditures to maintain assets
 
$
24,106

 
$
70,954

 
$
79,567

Tenant improvements
 
8,462

 
76,187

 
83,639

Leasing commissions
 
5,122

 
29,435

 
26,114

Recurring tenant improvements, leasing commissions and other capital expenditures
 
37,690

 
176,576

 
189,320

Non-recurring capital expenditures
 
12,622

 
31,381

 
27,762

Total capital expenditures and leasing commissions
 
$
50,312

 
$
207,957

 
$
217,082

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 Three Months Ended March 31, 2019
 
 Year Ended December 31,
 
 
 
2018
 
2017
Amounts paid for development and redevelopment expenditures:
 
 
 
 
 
 
Farley Office and Retail Building
 
$
51,506

 
$
18,995

 
$
—

606 Broadway
 
4,980

 
15,959

 
15,997

PENN1
 
4,941

 
8,856

 
1,462

1535 Broadway
 
1,031

 
8,645

 
1,982

Other
 
20,018

 
36,660

 
23,933

 
 
$
82,476

 
$
89,115

 
$
43,374



- 26 -

 vornadologoa02.jpg

CAPITAL EXPENDITURES,
TENANT IMPROVEMENTS AND LEASING COMMISSIONS
theMART
(unaudited and in thousands)
 
 
 
 
 
 
 
 
Three Months Ended March 31, 2019
 
 Year Ended December 31,
Amounts paid for capital expenditures:
 
 
2018
 
2017
Expenditures to maintain assets
 
$
2,019

 
$
13,282

 
$
12,772

Tenant improvements
 
1,015

 
15,106

 
8,730

Leasing commissions
 
—

 
459

 
1,701

Recurring tenant improvements, leasing commissions and other capital expenditures
 
3,034

 
28,847

 
23,203

Non-recurring capital expenditures
 
74

 
260

 
—

Total capital expenditures and leasing commissions
 
$
3,108

 
$
29,107

 
$
23,203

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended March 31, 2019
 
 Year Ended December 31,
 
 
 
2018
 
2017
Amounts paid for development and redevelopment expenditures:
 
 
 
 
 
 
Common area enhancements
 
$
—

 
$
51

 
$
5,342

Other
 
686

 
10,739

 
799

 
 
$
686

 
$
10,790

 
$
6,141


- 27 -

 vornadologoa02.jpg

CAPITAL EXPENDITURES,
TENANT IMPROVEMENTS AND LEASING COMMISSIONS
555 CALIFORNIA STREET
 
 
 
 
 
 
(unaudited and in thousands)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended March 31, 2019
 
 Year Ended December 31,
Amounts paid for capital expenditures:
 
 
2018
 
2017
Expenditures to maintain assets
 
$
252

 
$
8,150

 
$
9,689

Tenant improvements
 
2

 
8,898

 
19,327

Leasing commissions
 
—

 
3,360

 
1,330

Recurring tenant improvements, leasing commissions and other capital expenditures
 
254

 
20,408

 
30,346

Non-recurring capital expenditures
 
8

 
11,494

 
7,159

Total capital expenditures and leasing commissions
 
$
262

 
$
31,902

 
$
37,505

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended March 31, 2019
 
 Year Ended December 31,
 
 
 
2018
 
2017
Amounts paid for development and redevelopment expenditures:
 
 
 
 
 
 
345 Montgomery Street
 
$
3,250

 
$
18,187

 
$
5,950

Other
 
1,388

 
445

 
6,465

 
 
$
4,638

 
$
18,632

 
$
12,415



- 28 -

 vornadologoa02.jpg

CAPITAL EXPENDITURES,
TENANT IMPROVEMENTS AND LEASING COMMISSIONS
 
OTHER
 
(unaudited and in thousands)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended March 31, 2019
 
 Year Ended December 31,
 
 
 
 
2018
 
2017
 
Amounts paid for development and redevelopment expenditures:
 
 
 
 
 
 
 
220 CPS
 
$
54,623

 
$
295,827

 
$
265,791

 
Other
 
879

 
3,822

 
28,131

(1) 
 
 
$
55,502

 
$
299,649

 
$
293,922

 
____________________
(1)
Primarily relates to our former Washington, DC segment which was spun-off on July 17, 2017.





- 29 -

 vornadologoa02.jpg

SQUARE FOOTAGE
(unaudited and square feet in thousands)
 
 
 
At Vornado's Share
 
At
100%
 
 
 
Under Development
 
In Service
 
 
Total
 
 
Office
 
Retail
 
Showroom
 
Other
Segment:
 
 
 
 
 
 
 
 
 
 
 
 
 
New York:
 
 
 
 
 
 
 
 
 
 
 
 
 
Office
21,499

 
17,980

 
1,339

 
16,458

 
—

 
183

 
—

Retail
2,791

 
2,550

 
146

 
—

 
2,404

 
—

 
—

Residential - 1,683 units
1,533

 
800

 
4

 
—

 
—

 
—

 
796

Alexander's (32.4% interest), including 312 residential units
2,437

 
789

 
63

 
288

 
355

 
—

 
83

Hotel Pennsylvania
1,400

 
1,400

 
—

 
—

 
—

 
—

 
1,400

 
29,660

 
23,519

 
1,552

 
16,746

 
2,759

 
183

 
2,279

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Other:
 
 
 
 
 
 
 
 
 
 
 
 
 
theMART
3,695

 
3,686

 
—

 
2,045

 
109

 
1,532

 
—

555 California Street (70% interest)
1,821

 
1,275

 
55

 
1,189

 
31

 
—

 
—

Other
2,831

 
1,332

 
140

 
212

 
869

 
—

 
111

 
8,347

 
6,293

 
195

 
3,446

 
1,009

 
1,532

 
111

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total square feet at March 31, 2019
38,007

 
29,812

 
1,747

 
20,192

 
3,768

 
1,715

 
2,390

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total square feet at December 31, 2018
38,014

 
29,820

 
1,687

 
20,181

 
3,842

 
1,716

 
2,394

 
 
 
 
 
 
 
 
 
 
 
 
 
 
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, 2019
2,806

 
19

 
8,059

 
 
 
 
 
 
 
 



- 30 -

 vornadologoa02.jpg


TOP 30 TENANTS
(unaudited and 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
 
758,292

 
$
75,749

 
3.1
%
 IPG and affiliates
 
967,552

 
63,740

 
2.6
%
 Swatch Group USA
 
25,634

 
48,758

 
2.0
%
 Macy's
 
646,434

 
38,233

 
1.6
%
 Google/Motorola Mobility (guaranteed by Google)
 
728,483

 
35,594

 
1.4
%
 Bloomberg L.P.
 
287,898

 
34,378

 
1.4
%
 Forever 21
 
170,374

 
33,697

 
1.4
%
 Victoria's Secret (guaranteed by L Brands, Inc.)
 
63,779

 
33,139

 
1.3
%
 AXA Equitable Life Insurance
 
336,646

 
32,762

 
1.3
%
 Oath (Verizon)
 
327,138

 
31,380

 
1.3
%
 Ziff Brothers Investments, Inc.
 
287,030

 
30,786

 
1.3
%
 McGraw-Hill Companies, Inc.
 
479,557

 
30,470

 
1.2
%
 AMC Networks, Inc.
 
404,920

 
28,037

 
1.1
%
 The City of New York
 
563,545

 
25,136

 
1.0
%
 Topshop
 
94,349

 
24,511

 
1.0
%
 Fast Retailing (Uniqlo)
 
90,732

 
23,795

 
1.0
%
 Amazon (including its Whole Foods subsidiary)
 
308,113

 
23,759

 
1.0
%
 Neuberger Berman Group LLC
 
288,325

 
22,948

 
0.9
%
 Madison Square Garden
 
344,355

 
22,753

 
0.9
%
 Bank of America
 
254,033

 
21,435

 
0.9
%
 JCPenney
 
426,370

 
21,068

 
0.9
%
 Hollister
 
21,741

 
20,485

 
0.8
%
 New York University
 
347,948

 
20,452

 
0.8
%
 PwC
 
241,196

 
17,430

 
0.7
%
 U.S. Government
 
578,711

 
14,666

 
0.6
%
 Sephora
 
16,146

 
14,173

 
0.6
%
 Ferragamo
 
53,171

 
13,537

 
0.6
%
 Information Builders, Inc.
 
210,978

 
13,223

 
0.5
%
 New York & Company, Inc.
 
207,585

 
12,082

 
0.5
%
 Cushman & Wakefield
 
127,314

 
11,843

 
0.5
%
 
 
 
 
 
 
34.2
%
____________________
(1)
Includes leases not yet commenced.
(2)
See reconciliation of our annualized revenue at share on page xii in the Appendix.

- 31 -

 vornadologoa02.jpg

OCCUPANCY
(unaudited)
 
 
 
 
 
 
 
 
New York
 
theMART
 
555 California Street
Occupancy rate at:
 
 
 
 
 
 
March 31, 2019
 
97.0
%
 
94.9
%
 
99.4
%
December 31, 2018
 
97.0
%
 
94.7
%
 
99.4
%
March 31, 2018
 
96.9
%
 
99.1
%
 
97.8
%


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, 2019
1,995
 
959
 
96.7%
 
$3,821
December 31, 2018
1,999
 
963
 
96.6%
 
$3,803
March 31, 2018
2,008
 
980
 
96.9%
 
$3,726


- 32 -

 vornadologoa02.jpg

NEW YORK SEGMENT
PROPERTY TABLE
 
 
%
Ownership
 
%
Occupancy
 
Weighted
Average
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
%
 
92.3
%
 
$
66.88

 
2,273,000

 
2,104,000

 
169,000

 
 
 
United Healthcare Services, Inc., Siemens Mobility
 
 
 

 
 

 
 

 
 

 
 
 
 

 
 

 
Bank of America, Kmart Corporation,
-Retail
 
100.0
%
 
97.4
%
 
138.31

 
270,000

 
270,000

 
—

 
 
 
Shake Shack, Starbucks
 
 
100.0
%
 
92.9
%
 
74.46

 
2,543,000

 
2,374,000

 
169,000

 
$
—

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
PENN2
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
EMC, Information Builders, Inc.,
-Office
 
100.0
%
 
100.0
%
 
61.31

 
1,589,000

 
1,305,000

 
284,000

 
 
 
Madison Square Garden, McGraw-Hill Companies, Inc.
-Retail
 
100.0
%
 
100.0
%
 
217.40

 
45,000

 
39,000

 
6,000

 
 
 
Chase Manhattan Bank
 
 
100.0
%
 
100.0
%
 
65.61

 
1,634,000

 
1,344,000

 
290,000

 
575,000

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
PENN11
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 
-Office
 
100.0
%
 
99.7
%
 
62.24

 
1,110,000

 
1,110,000

 
—

 
 
 
Macy's, Madison Square Garden, AMC Networks, Inc.
 
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
PNC Bank National Association, Starbucks,
-Retail
 
100.0
%
 
95.2
%
 
132.80

 
41,000

 
41,000

 
—

 
 
 
Madison Square Garden
 
 
100.0
%
 
99.5
%
 
64.75

 
1,151,000

 
1,151,000

 
—

 
450,000

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
100 West 33rd Street
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 
-Office
 
100.0
%
 
100.0
%
 
65.71

 
859,000

 
859,000

 
—

 
398,402

 
IPG and affiliates
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Manhattan Mall
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 
-Retail
 
100.0
%
 
95.9
%
 
127.83

 
256,000

 
256,000

 
—

 
181,598

 
JCPenney, Aeropostale, Express, Starbucks, Rose Mansion*
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
330 West 34th Street
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 
(ground leased through 2149 -
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 
34.8% ownership interest in the land)**
 
 

 
 

 
 

 
 
 
 
 
 
 
 
 
New York & Company, Inc., Structure Tone,
-Office
 
100.0
%
 
100.0
%
 
62.91

 
701,000

 
701,000

 
—

 
 
 
Deutsch, Inc., Web.com, Footlocker, Home Advisor, Inc.
-Retail
 
100.0
%
 
54.3
%
 
124.70

 
21,000

 
21,000

 
—

 
 
 
Starbucks*, Ballast Point*
 
 
100.0
%
 
98.7
%
 
62.91

 
722,000

 
722,000

 
—

 
50,150 (3)

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
435 Seventh Avenue
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 
-Retail
 
100.0
%
 
100.0
%
 
187.82

 
43,000

 
43,000

 
—

 
95,696

 
Forever 21*
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
7 West 34th Street
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 
-Office
 
53.0
%
 
100.0
%
 
64.86

 
458,000

 
458,000

 
—

 
 
 
Amazon
-Retail
 
53.0
%
 
89.3
%
 
336.71

 
19,000

 
19,000

 
—

 
 
 
Amazon, Lindt, Naturalizer* (guaranteed by Caleres)
 
 
53.0
%
 
99.6
%
 
75.69

 
477,000

 
477,000

 
—

 
300,000

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
431 Seventh Avenue
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 
-Retail
 
100.0
%
 
100.0
%
 
270.94

 
10,000

 
10,000

 
—

 
—

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
488 Eighth Avenue
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 
-Retail
 
100.0
%
 
100.0
%
 
89.40

 
6,000

 
6,000

 
—

 
—

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
138-142 West 32nd Street
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 
-Retail
 
100.0
%
 
100.0
%
 
113.14

 
8,000

 
8,000

 
—

 
—

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

 
78,000

 
78,000

 
—

 
205,000

 
Old Navy
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

- 33 -

 vornadologoa02.jpg

NEW YORK SEGMENT
PROPERTY TABLE
 
 
%
Ownership
 
%
Occupancy
 
Weighted
Average
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
%
 
$
97.47

 
3,000

 
3,000

 
—

 
$
—

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
131-135 West 33rd Street
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 
-Retail
 
100.0
%
 
100.0
%
 
55.08

 
23,000

 
23,000

 
—

 
—

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Penn District
 
 

 
 

 
 
 
7,813,000

 
7,354,000

 
459,000

 
2,255,846

 
 
Midtown East:
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 
909 Third Avenue
 
 

 
 

 
 
 
 
 
 
 
 
 
 
 
 
(ground leased through 2063)**
 
 

 
 

 
 
 
 
 
 
 
 
 
 
 
IPG and affiliates, Forest Laboratories,
-Office
 
100.0
%
 
98.6
%
 
64.15

(4) 
1,352,000

 
1,352,000

 
—

 
350,000

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

 
 

 
 

 
 
 
 
 
 
 
 

 
 
(ground leased through 2118)**
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
-Office
 
100.0
%
 
97.6
%
 
76.72

 
540,000

 
540,000

 
—

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

 
3,000

 
3,000

 
—

 
 
 
 
 
 
100.0
%
 
97.2
%
 
76.40

 
543,000

 
543,000

 
—

 
—

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
715 Lexington Avenue
 
 

 
 

 
 
 
 
 
 
 
 
 
 
 
 
-Retail
 
100.0
%
 
92.5
%
 
104.62

 
23,000

 
23,000

 
—

 
—

 
New York & Company, Inc., Jonathan Adler
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
966 Third Avenue
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 
-Retail
 
100.0
%
 
100.0
%
 
96.03

 
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
 
 

 
 

 
 
 
1,932,000

 
1,932,000


—


350,000

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Midtown West:
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 
888 Seventh Avenue
 
 

 
 

 
 
 
 
 
 
 
 
 
 
 
 
(ground leased through 2067)**
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
Axon Capital LP, Lone Star US Acquisitions LLC,
-Office
 
100.0
%
 
92.0
%
 
92.55

 
871,000

 
871,000

 
—

 
 
 
Vornado Executive Headquarters, United Talent Agency,
-Retail
 
100.0
%
 
100.0
%
 
309.08

 
15,000

 
15,000

 
—

 
 
 
Redeye Grill L.P.
 
 
100.0
%
 
92.2
%
 
96.22

 
886,000

 
886,000

 
—

 
375,000

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
57th Street - 2 buildings
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 
-Office
 
50.0
%
 
84.6
%
 
48.70

 
81,000

 
81,000

 
—

 
 
 
Various
-Retail
 
50.0
%
 
100.0
%
 
137.46

 
22,000

 
22,000

 
—

 
 
 
 
 
 
50.0
%
 
87.9
%
 
67.66

 
103,000

 
103,000

 
—

 
20,000

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Midtown West
 
 

 
 

 
 

 
989,000

 
989,000

 
—

 
395,000

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Park Avenue:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
280 Park Avenue
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
Cohen & Steers Inc., Franklin Templeton Co. LLC,
-Office
 
50.0
%
 
93.3
%
 
102.11

 
1,234,000

 
1,234,000

 
—

 
 
 
PJT Partners, Investcorp International Inc., GIC Inc., Wells Fargo
-Retail
 
50.0
%
 
100.0
%
 
102.82

 
26,000

 
26,000

 
—

 
 
 
Scottrade Inc., Starbucks, The Four Seasons Restaurant
 
 
50.0
%
 
93.5
%
 
102.13

 
1,260,000

 
1,260,000

 
—

 
1,200,000

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

- 34 -

 vornadologoa02.jpg

NEW YORK SEGMENT
PROPERTY TABLE
 
 
%
Ownership
 
%
Occupancy
 
Weighted
Average
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 (Continued):
 
 

 
 

 
 

 
 

 
 
 
 

 
 

 
 
350 Park Avenue
 
 

 
 

 
 

 
 

 
 
 
 

 
 

 
Kissinger Associates Inc., Ziff Brothers Investment Inc.,
-Office
 
100.0
%
 
97.7
%
 
$
108.46

 
553,000

 
553,000

 
—

 
 
 
MFA Financial Inc., M&T Bank
-Retail
 
100.0
%
 
100.0
%
 
272.80

 
18,000

 
18,000

 
—

 
 
 
Fidelity Investments, AT&T Wireless, Valley National Bank
 
 
100.0
%
 
97.8
%
 
113.64

 
571,000

 
571,000


—


$
400,000

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Park Avenue
 
 

 
 

 
 
 
1,831,000

 
1,831,000

 
—

 
1,600,000

 
 
Grand Central:
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 
90 Park Avenue
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
Alston & Bird, Capital One, PwC, MassMutual*
-Office
 
100.0
%
 
99.3
%
 
78.17

 
938,000

 
938,000

 
—

 
 
 
Factset Research Systems Inc., Foley & Lardner
-Retail
 
100.0
%
 
100.0
%
 
135.76

 
18,000

 
18,000

 
—

 
 
 
Citibank, Starbucks
 
 
100.0
%
 
99.3
%
 
79.25

 
956,000

 
956,000


—

 
—

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
330 Madison Avenue
 
 

 
 

 
 

 
 
 
 
 
 
 
 

 
Guggenheim Partners LLC, HSBC Bank AFS, Glencore Ltd.,
-Office
 
25.0
%
 
96.2
%
 
79.91

 
813,000

 
813,000

 
—

 
 
 
Jones Lang LaSalle Inc., Wells Fargo, American Century
-Retail
 
25.0
%
 
100.0
%
 
331.84

 
33,000

 
33,000

 
—

 
 
 
Ann Taylor Retail Inc., Citibank, Starbucks
 
 
25.0
%
 
96.4
%
 
89.74

 
846,000

 
846,000


—


500,000

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
510 Fifth Avenue
 
 

 
 

 
 
 
 
 
 
 
 
 
 
 
 
-Retail
 
100.0
%
 
100.0
%
 
161.44

 
66,000

 
66,000

 
—

 
—

 
The North Face, Elie Tahari
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Grand Central
 
 

 
 

 
 
 
1,868,000

 
1,868,000

 
—

 
500,000

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Madison/Fifth:
 
 
 
 

 
 

 
 

 
 
 
 

 
 
 
 
640 Fifth Avenue
 
 
 
 

 
 
 
 
 
 
 
 
 
 
 
Fidelity Investments, Owl Creek Asset Management LP,
-Office
 
100.0
%
 
95.6
%
 
93.63

 
246,000

 
246,000

 
—

 
 
 
Avolon Aerospace*, GCA Savvian Inc.
-Retail
 
100.0
%
 
100.0
%
 
914.46

 
69,000

 
69,000

 
—

 
 
 
Victoria's Secret (guaranteed by L Brands, Inc.), Dyson
 
 
100.0
%
 
96.5
%
 
273.43

 
315,000

 
315,000

 
—

 
—

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
666 Fifth Avenue
 
 
 
 

 
 

 
 

 
 
 
 

 
 
 
 
-Retail
 
100.0
%
(5) 
100.0
%
 
473.95

 
114,000

 
114,000

 
—

 
390,000

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

 
 

 
 

 
 

 
 
 
 

 
 
 
Beauvais Carpets, Levin Capital Strategies LP,
-Office
 
100.0
%
 
91.5
%
 
84.84

 
301,000

 
301,000

 
—

 
 
 
Cosmetech Mably Int'l LLC.
-Retail
 
100.0
%
 
39.2
%
 
1,309.75

 
29,000

 
29,000

 
—

 
 
 
Coach
 
 
100.0
%
 
86.9
%
 
192.49

 
330,000

 
330,000

 
—

 
—

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
650 Madison Avenue
 
 

 
 

 
 

 
 

 
 
 
 

 
 
 
Memorial Sloan Kettering Cancer Center, Polo Ralph Lauren,
-Office
 
20.1
%
 
97.9
%
 
113.68

 
564,000

 
564,000

 
—

 
 
 
Willett Advisors LLC (Bloomberg Philanthropies), Sotheby's International Realty, Inc.*
-Retail
 
20.1
%
 
68.6
%
 
1,256.83

 
39,000

 
39,000

 
—

 
 
 
Moncler USA Inc., Tod's, Celine*
 
 
20.1
%
 
96.0
%
 
187.61

 
603,000

 
603,000

 
—

 
800,000

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
689 Fifth Avenue
 
 

 
 

 
 

 
 

 
 
 
 

 
 
 
 
-Office
 
100.0
%
 
100.0
%
 
85.22

 
81,000

 
81,000

 
—

 
 
 
Yamaha Artist Services Inc., Brunello Cucinelli USA Inc.
-Retail
 
100.0
%
 
100.0
%
 
864.39

 
17,000

 
17,000

 
—

 
 
 
MAC Cosmetics, Massimo Dutti
 
 
100.0
%
 
100.0
%
 
220.38

 
98,000

 
98,000

 
—

 
—

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
655 Fifth Avenue
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
-Retail
 
92.5
%
 
100.0
%
 
253.79

 
57,000

 
57,000

 
—

 
140,000

 
Ferragamo
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

- 35 -

 vornadologoa02.jpg

NEW YORK SEGMENT
PROPERTY TABLE
 
 
%
Ownership
 
%
Occupancy
 
Weighted
Average
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):
 
 
 
 

 
 

 
 

 
 

 
 

 
 

 
 
Madison/Fifth (Continued):
 
 
 
 

 
 

 
 

 
 
 
 

 
 
 
 
697-703 Fifth Avenue
 
 

 
 

 
 
 
 
 
 
 
 
 
 
 
 
-Retail
 
74.3
%
 
100.0
%
 
$
2,816.68

 
26,000

 
26,000

 
—

 
$
450,000

 
Swatch Group USA, Harry Winston
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Madison/Fifth
 
 

 
 

 
 
 
1,543,000


1,543,000





1,780,000

 
 
Midtown South:
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 
770 Broadway
 
 

 
 

 
 

 
 
 
 
 
 
 
 

 
 
-Office
 
100.0
%
 
100.0
%
 
97.91

 
1,078,000

 
1,078,000

 
—

 
 
 
Facebook, Oath (Verizon)
-Retail
 
100.0
%
 
92.5
%
 
61.34

 
105,000

 
105,000

 
—

 
 
 
Bank of America, Kmart Corporation
 
 
100.0
%
 
99.3
%
 
94.66

 
1,183,000

 
1,183,000

 
—

 
700,000

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
One Park Avenue
 
 

 
 

 
 

 
 
 
 
 
 
 
 

 
New York University, Clarins USA Inc.,
 
 
 

 
 

 
 

 
 
 
 
 
 
 
 

 
BMG Rights Management, Robert A.M. Stern Architect,
-Office
 
55.0
%
 
100.0
%
 
59.13

 
865,000

 
865,000

 
—

 
 
 
automotiveMastermind
-Retail
 
55.0
%
 
100.0
%
 
89.09

 
78,000

 
78,000

 
—

 
 
 
Bank of Baroda, Citibank, Equinox, Men's Wearhouse
 
 
55.0
%
 
100.0
%
 
61.61

 
943,000

 
943,000

 
—

 
300,000

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
4 Union Square South
 
 

 
 

 
 
 
 
 
 
 
 
 
 
 
Burlington, Whole Foods Market, DSW,
-Retail
 
100.0
%
 
100.0
%
 
110.55

 
206,000

 
206,000

 
—

 
120,000

 
Forever 21
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
692 Broadway
 
 

 
 

 
 
 
 
 
 
 
 
 
 
 
 
-Retail
 
100.0
%
 
100.0
%
 
93.71

 
36,000

 
36,000

 
—

 
—

 
Equinox, Oath (Verizon)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Midtown South
 
 
 
 

 
 
 
2,368,000

 
2,368,000

 
—

 
1,120,000

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Rockefeller Center:
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 
1290 Avenue of the Americas
 
 

 
 

 
 
 
 
 
 
 
 
 
 
 
AXA Equitable Life Insurance, Hachette Book Group Inc.,
 
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
Bryan Cave LLP, Neuberger Berman Group LLC, SSB Realty LLC,
 
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
Cushman & Wakefield, Fitzpatrick, LinkLaters*,
-Office
 
70.0
%
 
100.0
%
 
82.77

 
2,042,000

 
2,042,000

 
—

 
 
 
Cella, Harper & Scinto, Columbia University
-Retail
 
70.0
%
 
100.0
%
 
183.24

 
76,000

 
76,000

 
—

 
 
 
Duane Reade, JPMorgan Chase Bank, Sovereign Bank, Starbucks
 
 
70.0
%
 
100.0
%
 
86.38

 
2,118,000

 
2,118,000

 
—

 
950,000

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
608 Fifth Avenue
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 
(ground leased through 2033)**
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 
-Office
 
100.0
%
 
94.6
%
 
72.10

 
93,000

 
93,000

 
—

 
 
 
 
-Retail
 
100.0
%
 
100.0
%
 
486.57

 
44,000

 
44,000

 
—

 
 
 
Topshop
 
 
100.0
%
 
96.4
%
 
205.21

 
137,000

 
137,000

 
—

 
—

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Rockefeller Center
 
 

 
 

 
 
 
2,255,000

 
2,255,000

 
—

 
950,000

 
 
Wall Street/Downtown:
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 
40 Fulton Street
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 
-Office
 
100.0
%
 
72.6
%
 
49.70

 
246,000

 
246,000

 
—

 
 
 
Market News International Inc., Fortune Media Group*
-Retail
 
100.0
%
 
100.0
%
 
108.51

 
5,000

 
5,000

 
—

 
 
 
TD Bank
 
 
100.0
%
 
73.2
%
 
50.87

 
251,000

 
251,000

 
—

 
—

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Soho:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
478-486 Broadway - 2 buildings
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
-Retail
 
100.0
%
 
100.0
%
 
249.81

 
65,000

 
65,000

 
—

 
 
 
Topshop, Madewell, J. Crew
-Residential (10 units)
 
100.0
%
 
100.0
%
 
 
 
20,000

 
20,000

 
—

 
 
 
 
 
 
100.0
%
 
100.0
%
 
 
 
85,000

 
85,000

 
—

 
—

 
 

- 36 -

 vornadologoa02.jpg

NEW YORK SEGMENT
PROPERTY TABLE
 
 
%
Ownership
 
%
Occupancy
 
Weighted
Average
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):
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 
443 Broadway
 
 

 
 

 
 
 
 
 
 
 
 
 
 
 
 
-Retail
 
100.0
%
 
100.0
%
 
$
100.00

 
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
%
 
69.2
%
 
 

 
13,000

 
13,000

 
—

 
—

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
334 Canal Street
 
 

 
 

 
 
 
 
 
 
 
 
 
 
 
 
-Retail
 
100.0
%
 
100.0
%
 
100.20

 
4,000

 
4,000

 
—

 
 
 
 
-Residential (4 units)
 
100.0
%
 
100.0
%
 
—

 
11,000

 
11,000

 
—

 
 
 
 
 
 
100.0
%
 
100.0
%
 
 

 
15,000

 
15,000

 
—

 
—

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
155 Spring Street
 
 

 
 

 
 
 
 
 
 
 
 
 
 
 
 
-Retail
 
100.0
%
 
100.0
%
 
137.09

 
50,000

 
50,000

 
—

 
—

 
Vera Bradley
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
148 Spring Street
 
 

 
 

 
 
 
 
 
 
 
 
 
 
 
 
-Retail
 
100.0
%
 
100.0
%
 
196.15

 
8,000

 
8,000

 
—

 
—

 
Dr. Martens
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
150 Spring Street
 
 

 
 

 
 
 
 
 
 
 
 
 
 
 
 
-Retail
 
100.0
%
 
63.2
%
 
428.87

 
6,000

 
6,000

 
—

 
 
 
Sandro
-Residential (1 unit)
 
100.0
%
 
100.0
%
 
 

 
1,000

 
1,000

 
—

 
 
 
 
 
 
100.0
%
 
68.5
%
 
 

 
7,000

 
7,000

 
—

 
—

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Soho
 
 

 
 

 
 
 
194,000


194,000


—

 
—

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Times Square:
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 
1540 Broadway
 
 

 
 

 
 
 
 
 
 
 
 
 
 
 
Forever 21, Planet Hollywood, Disney, Sunglass Hut,
-Retail
 
100.0
%
 
100.0
%
 
271.85

 
161,000

 
161,000

 
—

 
—

 
MAC Cosmetics, U.S. Polo
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1535 Broadway
 
 
 
 

 
 
 
 
 
 
 
 
 
 
 
 
-Retail
 
100.0
%
 
95.3
%
 
1,086.40

 
45,000

 
45,000

 
—

 
 
 
T-Mobile, Invicta, Swatch Group USA, Levi's, Sephora
-Theatre
 
100.0
%
 
100.0
%
 
13.90

 
62,000

 
62,000

 
—

 
 
 
Nederlander-Marquis Theatre
 
 
100.0
%
 
98.0
%
 
404.84

 
107,000

 
107,000

 
—

 
—

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Times Square
 
 

 
 

 
 
 
268,000

 
268,000

 
—

 
—

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Upper East Side:
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 
828-850 Madison Avenue
 
 

 
 

 
 

 
 
 
 
 
 
 
 
 
 
-Retail
 
100.0
%
 
84.6
%
 
442.81

 
18,000

 
14,000

 
4,000

 
—

 
Gucci, Christofle Silver Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
677-679 Madison Avenue
 
 

 
 

 
 
 
 
 
 
 
 
 
 
 
 
-Retail
 
100.0
%
 
100.0
%
 
522.41

 
8,000

 
8,000

 
—

 
 
 
Berluti
-Residential (8 units)
 
100.0
%
 
75.0
%
 
 
 
5,000

 
5,000

 
—

 
 
 
 
 
 
100.0
%
 
90.4
%
 
 

 
13,000

 
13,000

 
—

 
—

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
759-771 Madison Avenue (40 East 66th)
 
 

 
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 


 
 
 
 
 
 
 
 
-Retail
 
100.0
%
 
42.8
%
 
1,317.58

 
11,000

 
11,000

 
—

 
 
 
John Varvatos
-Residential (5 units)
 
100.0
%
 
100.0
%
 
 
 
12,000

 
12,000

 
—

 
 
 
 
 
 
100.0
%
 
72.7
%
 
 

 
23,000

 
23,000

 
—

 
—

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1131 Third Avenue
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 
-Retail
 
100.0
%
 
100.0
%
 
176.99

 
23,000

 
23,000

 
—

 
—

 
Nike, Crunch LLC, J.Jill
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

- 37 -

 vornadologoa02.jpg

NEW YORK SEGMENT
PROPERTY TABLE
 
 
%
Ownership
 
%
Occupancy
 
Weighted
Average
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):
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 
Other
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 
-Retail - 2 buildings
 
100.0
%
 
100.0
%
 
$
—

 
15,000

 
15,000

 
—

 
 
 
 
-Residential (8 units)
 
100.0
%
 
100.0
%
 
 

 
7,000

 
3,000

 
4,000

 
 
 
 
 
 
100.0
%
 
100.0
%
 
 

 
22,000

 
18,000

 
4,000

 
$
—

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Upper East Side
 
 

 
 

 
 
 
99,000

 
91,000

 
8,000

 
—

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Long Island City:
 
 

 
 

 
 

 
 
 
 
 
 

 
 

 
 
33-00 Northern Boulevard (Center Building)
 
 

 
 

 
 

 
 
 
 
 
 

 
 

 
 
-Office
 
100.0
%
 
95.5
%
 
35.88

 
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
%
 
53.21

 
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
%
 
99.8
%
 
89.49

 
586,000

 
586,000

 
—

 
 
 
Moet Hennessy USA. Inc.
-Retail
 
49.9
%
 
96.4
%
 
79.15

 
43,000

 
43,000

 
—

 
 
 
IL Posto LLC, Toro NYC Restaurant, L'Atelier
 
 
49.9
%
 
99.5
%
 
88.79

 
629,000

 
629,000

 
—

 
625,000

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
537 West 26th Street
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
-Retail
 
100
%
 
—

 
—

 
14,000

 
14,000

 
—

 
—

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
61 Ninth Avenue
 
 

 
 

 
 
 
 

 
 

 
 

 
 

 
 
(ground leased through 2115)**
 
 

 
 

 
 
 
 

 
 

 
 

 
 

 
 
-Office
 
45.1
%
 
100.0
%
 
96.74

 
143,000

 
143,000

 
—

 
 
 
Aetna Life Insurance Company*
-Retail
 
45.1
%
 
100.0
%
 
287.61

 
23,000

 
23,000

 
—

 
 
 
Starbucks
 
 
45.1
%
 
100.0
%
 
123.18

 
166,000

 
166,000

 
—

 
167,500

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Chelsea/Meatpacking District
 
 

 
 

 
 
 
993,000


993,000

 
—

 
792,500

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Upper West Side:
 
 

 
 

 
 
 
 

 
 

 
 

 
 

 
 
50-70 W 93rd Street
 
 

 
 

 
 
 
 
 
 
 
 
 
 
 
 
-Residential (325 units)
 
49.9
%
 
97.2
%
 
 
 
283,000

 
283,000

 
—

 
80,000

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Tribeca:
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 
Independence Plaza
 
 

 
 

 
 
 
 
 
 
 
 
 
 
 
 
-Residential (1,327 units)
 
50.1
%
 
96.8
%
 
 

 
1,185,000

 
1,185,000

 
—

 
 
 
 
-Retail
 
50.1
%
 
100.0
%
 
64.54

 
72,000

 
38,000

 
34,000

 
 
 
Duane Reade
 
 
50.1
%
 
97.0
%
 
 

 
1,257,000

 
1,223,000

 
34,000

 
675,000

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
339 Greenwich Street
 
 

 
 

 
 
 
 
 
 
 
 
 
 
 
 
-Retail
 
100.0
%
 
100.0
%
 
109.91

 
8,000

 
8,000

 
—

 
—

 
Sarabeth's
Total Tribeca
 
 

 
 

 
 

 
1,265,000

 
1,231,000

 
34,000

 
675,000

 
 
New Jersey:
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 
Paramus
 
 

 
 

 
 
 
 
 
 
 
 
 
 
 
 
-Office
 
100.0
%
 
88.6
%
 
23.24

 
129,000

 
129,000

 
—

 
—

 
Vornado's Administrative Headquarters
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Washington D.C.:
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 
3040 M Street
 
 

 
 

 
 
 
 
 
 
 
 
 
 
 
 
-Retail
 
100.0
%
 
100.0
%
 
79.86

 
44,000

 
44,000

 
—

 
—

 
Nike, Amazon
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

- 38 -

 vornadologoa02.jpg

NEW YORK SEGMENT
PROPERTY TABLE
 
 
%
Ownership
 
%
Occupancy
 
Weighted
Average
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):
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 
Property under Development:
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 
512 West 22nd Street
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 
-Office
 
55.0
%
 
—

 
$
—

 
173,000

 
—

 
173,000

 
$
92,590

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
606 Broadway (19 East Houston Street)
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 
-Office
 
50.0
%
 
—

 
—

 
30,000

 
—

 
30,000

 
 
 
WeWork*
-Retail
 
50.0
%
 
100.0
%
 
669.29

 
5,000

 
3,000

 
2,000

 
 
 
HSBC*
 
 
50.0
%
 
100.0
%
 
669.29

 
35,000

 
3,000

 
32,000

 
56,389

 
 
Farley Office and Retail Building
(ground and building leased through 2116)**
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
-Office
 
95.0
%
 
—

 
—

 
730,000

 
—

 
730,000

 
 
 
 
-Retail
 
95.0
%
 
—

 
—

 
120,000

 
—

 
120,000

 
 
 
 
 
 
95.0
%
 
—

 
—

 
850,000

 
—

 
850,000

 
—

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
825 Seventh Avenue
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
-Office
 
50.0
%
 
—

 
—

 
165,000

 
—

 
165,000

 
 
 
 
-Retail
 
100.0
%
 
—

 
—

 
4,000

 
—

 
4,000

 
 
 
 
 
 
51.2
%
 
—

 
—

 
169,000

 
—

 
169,000

 
20,500

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Property under Development
 
 
 
 
 
 
 
1,227,000

 
3,000

 
1,224,000

 
169,479

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Properties to be Developed:
 
 

 
 

 
 
 
 
 
 
 
 
 
 
 
 
57th Street (3 properties)
 
 

 
 

 
 
 
 
 
 
 
 
 
 
 
 
-Office
 
50.0
%
 
—

 
—

 
—

 
—

 
—

 
—

 
 
-Retail
 
50.0
%
 
—

 
—

 
—

 
—

 
—

 
—

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
484 Eighth Avenue
 
 

 
 

 
 
 
 
 
 
 
 
 
 
 
 
-Retail
 
100.0
%
 
—

 
—

 
—

 
—

 
—

 
—

 
 
 
 
 
 
 
 
 
 

 

 

 
 
 
 
486 Eighth Avenue
 
 

 
 

 
 
 
 
 
 
 
 
 
 
 
 
-Retail
 
100.0
%
 
—

 
—

 
—

 
—

 
—

 
—

 
 
 
 
 
 
 
 
 
 

 

 

 
 
 
 
265 West 34th Street
 
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
-Retail
 
100.0
%
 
—

 
—

 
—

 
—

 
—

 
—

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
267 West 34th Street
 
 

 
 
 
 
 

 
 
 
 
 
 
 
 
-Retail
 
100.0
%
 
—

 
—

 
—

 
—

 
—

 
—

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Properties to be Developed
 
 
 
 
 
 
 
—

 
—

 
—

 
—

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
New York Office:
 
 

 
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total
 
 

 
97.1
%
 
$
76.55

 
21,499,000

 
19,948,000

 
1,551,000

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Vornado's Ownership Interest
 
 

 
97.0
%
 
$
74.45

 
17,980,000

 
16,641,000

 
1,339,000

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
New York Retail:
 
 

 
 

 
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total
 
 

 
97.0
%
 
$
235.23

 
2,791,000

 
2,621,000

 
170,000

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Vornado's Ownership Interest
 
 

 
97.1
%
 
$
229.75

 
2,550,000

 
2,404,000

 
146,000

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
New York Residential:
 
 

 
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total
 
 

 
96.9
%
 
 

 
1,533,000

 
1,529,000

 
4,000

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Vornado's Ownership Interest
 
 

 
96.7
%
 
 

 
800,000

 
796,000

 
4,000

 
 
 
 

- 39 -

 vornadologoa02.jpg

NEW YORK SEGMENT
PROPERTY TABLE
 
 
%
Ownership
 
%
Occupancy
 
Weighted
Average
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
%
 
$
119.41

 
889,000

 
889,000

 
—

 
$
500,000

 
Bloomberg
-Retail
 
32.4
%
 
99.4
%
 
193.97

 
174,000

 
174,000

 
—

 
350,000

 
Hennes & Mauritz, The Home Depot, The Container Store
 
 
32.4
%
 
99.9
%
 
130.55

 
1,063,000

 
1,063,000

 
—

 
850,000

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
Burlington,
Rego Park I, Queens (4.8 acres)
 
32.4
%
 
100.0
%
 
46.93

 
343,000

 
148,000

 
195,000

 
—

 
Bed Bath & Beyond, Marshalls
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Rego Park II (adjacent to Rego Park I),
 
 

 
 

 
 
 
 
 
 
 
 
 
 
 
 
Queens (6.6 acres)
 
32.4
%
 
92.0
%
 
44.58

 
609,000

 
609,000

 
—

 
56,836

(6) 
Century 21, Costco, Kohl's, TJ Maxx
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Flushing, Queens (1.0 acre ground leased through 2037)**
 
32.4
%
 
100.0
%
 
18.22

 
167,000

 
167,000

 
—

 
—

 
New World Mall LLC
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
The Alexander Apartment Tower,
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 
Rego Park, Queens, NY
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 
Residential (312 units)
 
32.4
%
 
95.5
%
 
—

 
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
%
 
97.3
%
 
84.46

 
2,437,000

 
2,242,000

 
195,000

 
974,836

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Hotel Pennsylvania:
 
 

 
 

 
 
 
 
 
 
 
 
 
 
 
 
-Hotel (1,700 Rooms)
 
100.0
%
 
 

 
 

 
1,400,000

 
1,400,000

 
—

 
—

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total New York
 
 

 
97.1
%
 
$
92.77

 
29,660,000

 
27,740,000

 
1,920,000

 
$
11,742,661

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Vornado's Ownership Interest
 
 

 
97.0
%
 
$
78.57

 
23,520,000

 
21,967,000

 
1,552,000

 
$
7,877,534

 
 
____________________
*    Lease not yet commenced.
**    Term assumes all renewal options exercised, if applicable.

(1)
Weighted average annual rent per square foot 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 the contractual debt obligations.
(3)
Amount represents debt on land which is owned 34.8% by Vornado.
(4)
Excludes US Post Office leased through 2038 (including three five-year renewal options) for which the annual escalated rent is $12.99 PSF.
(5)
75,000 square feet is leased from 666 Fifth Avenue Office Condominium.
(6)
Net of $195,708 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.



- 40 -

 vornadologoa02.jpg

OTHER
PROPERTY TABLE
 
 
%
Ownership
 
%
Occupancy
 
Weighted
Average
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, Ogilvy Group (WPP),
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Publicis Groupe (Razorfish), ANGI Home Services, Inc,
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1871, Yelp Inc., Paypal, Inc., Allscripts Healthcare,
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Chicago School of Professional Psychology, Kellogg Company,
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Innovation Development Institute, Inc., Chicago Teachers Union,
-Office
 
100.0
%
 
94.0
%
 
$
43.91

 
2,045,000

 
2,045,000

 
—

 
 
 
ConAgra Foods Inc., Allstate Insurance Company
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Steelcase, Baker, Knapp & Tubbs, Holly Hunt Ltd.,
-Showroom/Trade show
 
100.0
%
 
96.4
%
 
53.71

 
1,532,000

 
1,532,000

 
—

 
 
 
Allsteel Inc., Herman Miller Inc., Teknion LLC
-Retail
 
100.0
%
 
91.4
%
 
55.36

 
99,000

 
99,000

 
—

 
 
 
 
 
 
100.0
%
 
94.9
%
 
48.34

 
3,676,000

 
3,676,000

 
—

 
$
675,000

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Other (2 properties)
 
50.0
%
 
100.0
%
 
44.13

 
19,000

 
19,000

 
—

 
32,036

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total theMART
 
 
 
94.9
%
 
$
48.31

 
3,695,000

 
3,695,000

 
—

 
$
707,036

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Vornado's Ownership Interest
 
 
 
94.9
%
 
$
48.31

 
3,686,000

 
3,686,000

 
—

 
$
691,018

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
555 California Street:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
555 California Street
 
70.0
%
 
99.3
%
 
$
77.38

 
1,508,000

 
1,508,000

 
—

 
$
556,257

 
Bank of America, 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
%
 
73.72

 
235,000

 
235,000

 
—

 
—

 
Bank of America, Regus, Ripple Labs Inc., LendingHome Corporation,
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Blue Shield
345 Montgomery Street
 
70.0
%
 
—

 
—

 
78,000

 
—

 
78,000

 
—

 
Regus*
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total 555 California Street
 
 
 
99.4
%
 
$
76.89

 
1,821,000

 
1,743,000

 
78,000

 
$
556,257

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Vornado's Ownership Interest
 
 
 
99.4
%
 
$
76.89

 
1,275,000

 
1,220,000

 
55,000

 
$
389,380

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
____________________
*    Lease not yet commenced.

(1)
Weighted average annual rent per square foot excludes ground rent, storage rent and garages.
(2)
Represents the contractual debt obligations.

- 41 -

 vornadologoa02.jpg

REAL ESTATE FUND
PROPERTY TABLE
 
 
Fund
%
Ownership
 
%
Occupancy
 
Weighted
Average
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
%
 
$
243.85

 
96,000

 
96,000

 
—

 
 
 
Sephora, Bank of America
     -Residential (39 units)
 
100.0
%
 
94.9
%
 
 
 
59,000

 
59,000

 
—

 
 
 
 
 
 
100.0
%
 
 
 
 
 
155,000

 
155,000

 
—

 
$
143,736

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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
%
 
86.8
%
 
157.18

 
49,000

 
49,000

 
—

 
 
 
New York Sports Club, Krispy Kreme*
     -Office
 
75.3
%
 
100.0
%
 
50.28

 
196,000

 
196,000

 
—

 
 
 
American Management Association, Open Jar*
 
 
75.3
%
 
97.4
%
 
71.66

 
245,000

 
245,000

 
—

 
262,018

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
501 Broadway
 
100.0
%
 
100.0
%
 
265.19

 
9,000

 
9,000

 
—

 
22,872

 
Capital One Financial Corporation
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Miami, FL:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1100 Lincoln Road
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
     -Retail
 
100.0
%
 
72.1
%
 
183.60

 
51,000

 
51,000

 
—

 
 
 
Banana Republic
     -Theatre
 
100.0
%
 
100.0
%
 
42.46

 
79,000

 
79,000

 
—

 
 
 
Regal Cinema
 
 
100.0
%
 
89.1
%
 
84.88

 
130,000

 
130,000

 
—

 
82,750

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Real Estate Fund
 
88.8
%
 
95.5
%
 
 
 
539,000

 
539,000

 
—

 
$
511,376

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Vornado's Ownership Interest
 
28.6
%
 
95.9
%
 
 
 
154,000

 
154,000

 
—

 
$
111,664

 
 
____________________
*    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 -

 vornadologoa02.jpg

OTHER
PROPERTY TABLE
Property
 
%
Ownership
 
%
Occupancy
 
Weighted
Average
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
%
 
61.6
%
 
$
45.99

 
736,000

 
432,000

 
—

 
304,000

 
 
 
Gartner, Nathan Associates, Inc.
-Residential - 2 buildings (197 units)
 
43.7
%
 
97.9
%
 
 
 
253,000

 
253,000

 
—

 
—

 
 
 
 
 
 
 
 
 
 
 
 
989,000

 
685,000

 
—

 
304,000

 
$
39,523

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fashion Centre Mall
 
7.5
%
 
97.9
%
 
50.58

 
868,000

 
868,000

 
—

 
—

 
410,000

 
Macy's, Nordstrom
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Washington Tower
 
7.5
%
 
100.0
%
 
51.98

 
170,000

 
170,000

 
—

 
—

 
40,000

 
Computer Science Corp.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
New Jersey:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Wayne Town Center, Wayne
    (ground leased through 2064)**
 
100.0
%
 
100.0
%
 
31.92

 
676,000

 
233,000

 
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
 
 
 
91.9
%
 
$
41.53

 
2,831,000

 
2,084,000

 
443,000

 
304,000

 
$
489,523

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Vornado's Ownership Interest
 
 
 
92.8
%
 
$
32.16

 
1,332,000

 
749,000

 
443,000

 
140,000

 
$
53,674

 
 
____________________
**    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.





- 43 -

 vornadologoa02.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
Glen J. Weiss
Executive Vice President - Office Leasing - Co-Head of Real Estate
Barry S. Langer
Executive Vice President - Development - Co-Head of Real Estate
 
 
 
 
 
 
RESEARCH COVERAGE - EQUITY
 
 
 
 
 
 
James Feldman
 
 
Steve Sakwa/Jason Green
 
Nicholas Yulico
Bank of America/Merrill Lynch
 
 
Evercore ISI
 
Scotia Capital (USA) Inc
646-855-5808
 
 
212-446-9462/212-446-9449
 
212-225-6904
 
 
 
 
 
 
Ross Smotrich/Trevor Young
 
 
Daniel Ismail
 
John W. Guinee/Aaron Wolf
Barclays Capital
 
 
Green Street Advisors
 
Stifel Nicolaus & Company
212-526-2306/212-526-3098
 
 
949-640-8780
 
443-224-1307/443-224-1206
 
 
 
 
 
 
John P. Kim/Alex Nelson
 
 
Anthony Paolone/Patrice Chen
 
Michael Lewis/Alexei Siniakov
BMO Capital Markets
 
 
JP Morgan
 
SunTrust Robinson Humphrey
212-885-4115/212-885-4144
 
 
212-622-6682/212-622-1893
 
212-319-5659/212-590-0986
 
 
 
 
 
 
Michael Bilerman/Emmanuel Korchman
 
 
Vikram Malhotra/Adam J. Gabalski
 
Frank Lee
Citi
 
 
Morgan Stanley
 
UBS
212-816-1383/212-816-1382
 
 
212-761-7064/212-761-8051
 
415-352-5679
 
 
 
 
 
 
Derek Johnston/Tom Hennessy
 
 
Alexander Goldfarb/Daniel Santos
 
 
Deutsche Bank
 
 
Sandler O'Neill
 
 
904-520-4973/212-250-4063
 
 
212-466-7937/212-466-7927
 
 
 
 
 
 
 
 
RESEARCH COVERAGE - DEBT
 
 
 
 
 
 
Andrew Molloy
 
 
Jesse Rosenthal
 
Thierry Perrein
Bank of America/Merrill Lynch
 
 
CreditSights
 
Wells Fargo Securities
646-855-6435
 
 
212-340-3816
 
704-410-3262
 
 
 
 
 
 
Cristina Rosenberg
 
 
Mark Streeter
 
 
Citi
 
 
JP Morgan
 
 
212-723-6199
 
 
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.        


- 44 -

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APPENDIX
DEFINITIONS AND NON-GAAP RECONCILIATIONS



 vornadologoa02.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") - NOI represents total revenues less operating expenses. We consider NOI 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, we utilize this measure to make investment decisions as well as to compare the performance of our assets to that of our peers. NOI should not be considered a substitute for net income. NOI may not be comparable to similarly titled measures employed by other companies. We calculate NOI on an Operating Partnership basis which is before allocation to the noncontrolling interest of the Operating Partnership.
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.
In accordance with the NAREIT December 2018 restated definition of FFO, we have elected to exclude the mark-to-market adjustments of marketable equity securities from the calculation of FFO. Our FFO for the three months ended March 31, 2018 has been adjusted to exclude the $34,660,000, or $0.17 per share, decrease in fair value of marketable equity securities previously reported.

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 -

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NON-GAAP RECONCILIATIONS
RECONCILIATION OF NET INCOME (LOSS) ATTRIBUTABLE TO COMMON SHAREHOLDERS TO NET INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS, AS ADJUSTED
(unaudited and in thousands, except per share amounts)
 
 
For the Three Months Ended
 
 
March 31,
 
December 31,
2018
 
 
2019
 
2018
 
Net income (loss) attributable to common shareholders
(A)
$
181,488

 
$
(17,841
)
 
$
100,494

Per diluted share
 
$
0.95

 
$
(0.09
)
 
$
0.53

 
 
 
 
 
 
 
Certain (income) expense items that impact net income (loss) attributable to common shareholders:
 
 
 
 
 
 
After-tax net gain on sale of 220 CPS condominium units
 
$
(130,954
)
 
$
—

 
$
(67,336
)
Net gain from sale of UE common shares
 
(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) decrease in Lexington common shares (sold on March 1, 2019)
 
(16,068
)
 
32,875

 
1,662

Mark-to-market decrease in PREIT common shares (accounted for as a marketable security from March 12, 2019)
 
15,649

 
—

 
—

Our share of loss (income) from real estate fund investments (excluding our $4,252 share of One Park Avenue disputed additional transfer taxes for the three months ended March 31, 2018)
 
2,904

 
(814
)
 
24,366

Our share of disputed additional New York City transfer taxes based on a Tax Tribunal interpretation
 
—

 
23,503

 
—

Preferred share issuance costs
 
—

 
14,486

 
—

Previously capitalized internal leasing costs(1)
 
—

 
(1,348
)
 
(1,655
)
After-tax purchase price fair value adjustment related to the increase in ownership of the Farley joint venture
 
—

 
—

 
(27,289
)
Real estate impairment losses
 
—

 
—

 
12,000

Other
 
1,152

 
9,480

 
3,826

 
 
(167,172
)
 
78,182

 
(54,426
)
Noncontrolling interests' share of above adjustments
 
10,498

 
(5,001
)
 
3,369

Total of certain (income) expense items that impact net income (loss) attributable to common shareholders
(B)
$
(156,674
)
 
$
73,181

 
$
(51,057
)
Per diluted share (non-GAAP)
 
$
(0.82
)
 
$
0.38

 
$
(0.27
)
 
 
 
 
 
 
 
Net income attributable to common shareholders, as adjusted (non-GAAP)
(A+B)
$
24,814

 
$
55,340

 
$
49,437

Per diluted share (non-GAAP)
 
$
0.13

 
$
0.29

 
$
0.26

____________________________________________________________
(1)
"Net income, as adjusted" for the three months ended March 31, 2018 and December 31, 2018 have been reduced by $1,348 and $1,655, respectively, or $0.01 per diluted share for previously capitalized internal leasing costs to present 2018 “as adjusted” financial results on a comparable basis with the current year as a result of the January 1, 2019 adoption of a new GAAP accounting standard under which internal leasing costs can no longer be capitalized.

- ii -

 vornadologoa02.jpg

NON-GAAP RECONCILIATIONS
RECONCILIATION OF NET INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS TO FFO ATTRIBUTABLE TO COMMON SHAREHOLDERS PLUS ASSUMED CONVERSIONS
(unaudited and in thousands, except per share amounts)
 
 
For the Three Months Ended
 
 
March 31,
 
December 31,
2018
 
 
2019
 
2018
 
Reconciliation of our net income (loss) attributable to common shareholders to FFO attributable to common shareholders plus assumed conversions (non-GAAP):
 
 
 
 
 
 
Net income (loss) attributable to common shareholders
(A)
$
181,488

 
$
(17,841
)
 
$
100,494

Per diluted share
 
$
0.95

 
$
(0.09
)
 
$
0.53

 
 
 
 
 
 
 
FFO adjustments:
 
 
 
 
 
 
Depreciation and amortization of real property
 
$
108,483

 
$
100,410

 
$
104,067

Real estate impairment losses
 
—

 
—

 
12,000

Net gain from sale of UE common shares
 
(62,395
)
 
—

 
—

(Increase) decrease in fair value of marketable securities:
 


 


 


Lexington
 
(16,068
)
 
32,875

 
1,662

PREIT
 
15,649

 
—

 
—

Other
 
(42
)
 
111

 
(10
)
After-tax purchase price fair value adjustment on depreciable real estate
 
—

 
—

 
(27,289
)
Proportionate share of adjustments to equity in net income (loss) of partially owned entities to arrive at FFO:
 
 
 
 
 
 
Depreciation and amortization of real property
 
24,990

 
28,106

 
24,309

Net gains on sale of real estate
 
—

 
(305
)
 
—

(Increase) decrease in fair value of marketable securities
 
(12
)
 
1,674

 
2,081

 
 
70,605

 
162,871

 
116,820

Noncontrolling interests' share of above adjustments
 
(4,424
)
 
(10,046
)
 
(7,229
)
FFO adjustments, net
(B)
$
66,181

 
$
152,825

 
$
109,591

 
 
 
 
 
 
 
FFO attributable to common shareholders (non-GAAP)
(A+B)
$
247,669

 
$
134,984

 
$
210,085

Convertible preferred share dividends
 
15

 
16

 
15

FFO attributable to common shareholders plus assumed conversions (non-GAAP)
 
247,684

 
135,000

 
210,100

Add back of FFO allocated to noncontrolling interests of the Operating Partnership
 
16,013

 
8,621

 
13,483

FFO - OP Basis (non-GAAP)
 
$
263,697

 
$
143,621

 
$
223,583

FFO per diluted share (non-GAAP)
 
$
1.30

 
$
0.71

 
$
1.10


- iii -

 vornadologoa02.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 and in thousands, except per share amounts)
 
 
For the Three Months Ended
 
 
March 31,
 
December 31,
2018
 
 
2019
 
2018
 
FFO attributable to common shareholders plus assumed conversions (non-GAAP)
(A)
$
247,684

 
$
135,000

 
$
210,100

Per diluted share (non-GAAP)
 
$
1.30

 
$
0.71

 
$
1.10

 
 
 
 
 
 
 
Certain (income) expense items that impact FFO attributable to common shareholders plus assumed conversions:
 
 
 
 
 
 
After-tax net gain on sale of 220 Central Park South condominium units
 
$
(130,954
)
 
$
—

 
$
(67,336
)
Prepayment penalty in connection with redemption of $400 million 5.00% senior unsecured notes due January 2022
 
22,540

 
—

 
—

Our share of loss (income) from real estate fund investments (excluding our $4,252 share of One Park Avenue disputed additional transfer taxes for the three months ended March 31, 2018)
 
2,904

 
(814
)
 
24,366

Our share of disputed additional New York City transfer taxes based on a Tax Tribunal interpretation
 
—

 
23,503

 
—

Preferred share issuance costs
 
—

 
14,486

 
—

Previously capitalized internal leasing costs(1)
 
—

 
(1,348
)
 
(1,655
)
Other
 
1,206

 
4,421

 
1,745

 
 
(104,304
)
 
40,248

 
(42,880
)
Noncontrolling interests' share of above adjustments
 
6,559

 
(2,341
)
 
2,654

Total of certain (income) expense items that impact FFO attributable to common shareholders plus assumed conversions, net
(B)
$
(97,745
)
 
$
37,907

 
$
(40,226
)
Per diluted share (non-GAAP)
 
$
(0.51
)
 
$
0.20

 
$
(0.21
)
 
 
 
 
 
 
 
FFO attributable to common shareholders plus assumed conversions, as adjusted (non-GAAP)
(A+B)
$
149,939

 
$
172,907

 
$
169,874

Per diluted share (non-GAAP)
 
$
0.79

 
$
0.91

 
$
0.89

____________________________________________________________
(1)
"FFO, as adjusted" for the three months ended March 31, 2018 and December 31, 2018 have been reduced by $1,348 and $1,655, respectively, or $0.01 per diluted share for previously capitalized internal leasing costs to present 2018 “as adjusted” financial results on a comparable basis with the current year as a result of the January 1, 2019 adoption of a new GAAP accounting standard under which internal leasing costs can no longer be capitalized.


- iv -

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NON-GAAP RECONCILIATIONS
RECONCILIATION OF FFO ATTRIBUTABLE TO COMMON SHAREHOLDERS PLUS ASSUMED CONVERSIONS TO FAD
(unaudited and in thousands)
 
 
 
 
 
 
 
 
 
For the Three Months Ended
 
 
March 31,
 
December 31,
2018
 
 
2019
 
2018
 
FFO attributable to common shareholders plus assumed conversions (non-GAAP)
(A)
$
247,684

 
$
135,000

 
$
210,100

 
 
 
 
 
 
 
Adjustments to arrive at FAD (non-GAAP):
 
 
 
 
 
 
Recurring tenant improvements, leasing commissions and other capital expenditures
 
(40,978
)
 
(48,545
)
 
(64,303
)
Adjustments to FFO excluding FFO attributable to discontinued operations and sold properties
 
(104,441
)
 
39,584

 
(42,638
)
Amortization of acquired below-market leases, net
 
(6,088
)
 
(10,144
)
 
(6,656
)
Amortization of debt issuance costs
 
7,547

 
8,104

 
7,493

Stock-based compensation expense
 
31,654

 
13,669

 
5,532

Straight-line rentals
 
1,140

 
(7,430
)
 
2,674

Non real estate depreciation
 
1,513

 
1,635

 
1,490

Noncontrolling interests' share of above adjustments
 
6,886

 
193

 
5,933

FAD adjustments, net
(B)
(102,767
)
 
(2,934
)
 
(90,475
)
 
 
 
 
 
 
 
FAD (non-GAAP)
(A+B)
$
144,917


$
132,066


$
119,625

 
 
 
 
 
 
 
FAD payout ratio (1)
 
86.8
%
 
91.3
%
 
100.0
%
_____________________________________________
(1)
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 -

 vornadologoa02.jpg

NON-GAAP RECONCILIATIONS
RECONCILIATION OF NET INCOME TO NET OPERATING INCOME AT SHARE AND NET OPERATING INCOME AT SHARE - CASH BASIS
(unaudited and in thousands)
 
For the Three Months Ended
 
March 31,
 
December 31, 2018
 
2019
 
2018
 
Net income
$
213,044

 
$
282

 
$
97,821

 
 
 
 
 
 
Deduct:
 
 
 
 
 
(Income) loss from partially owned entities
(7,320
)
 
9,904

 
(3,090
)
Interest and other investment (income) loss, net
(5,045
)
 
24,384

 
(7,656
)
Net gains on disposition of wholly owned and partially owned assets
(220,294
)
 
—

 
(81,203
)
Purchase price fair value adjustment
—

 
—

 
(44,060
)
NOI attributable to noncontrolling interests in consolidated subsidiaries
(17,403
)
 
(17,312
)
 
(19,771
)
 
 
 
 
 
 
Add:
 
 
 
 
 
Loss from real estate fund investments
167

 
8,807

 
51,258

Depreciation and amortization expense
116,709

 
108,686

 
112,869

General and administrative expense
58,020

 
42,533

 
32,934

Transaction related costs, impairment loss and other
149

 
13,156

 
14,637

NOI from partially owned entities
67,402

 
67,513

 
60,205

Interest and debt expense
102,463

 
88,166

 
83,175

Loss (income) from discontinued operations
137

 
363

 
(257
)
Income tax expense
29,743

 
2,554

 
32,669

NOI at share
337,772

 
349,036

 
329,531

Non-cash adjustments for straight-line rents, amortization of acquired below-market leases, net, and other
(5,181
)
 
(17,948
)
 
(5,532
)
NOI at share - cash basis
$
332,591

 
$
331,088

 
$
323,999




- vi -

 vornadologoa02.jpg

NON-GAAP RECONCILIATIONS
COMPONENTS OF NET OPERATING INCOME AT SHARE AND NET OPERATING INCOME AT SHARE - CASH BASIS
(unaudited and in thousands)
 
 
 
 
 
 
 
 
 
 
 
For the Three Months Ended March 31,
 
Total Revenues
 
Operating Expenses
 
NOI
 
Non-cash Adjustments(1)
 
NOI - cash basis
 
2019
 
2018
 
2019
 
2018
 
2019
 
2018
 
2019
 
2018
 
2019
 
2018
New York
$
443,285

 
$
448,484

 
$
198,095

 
$
197,916

 
$
245,190

 
$
250,568

 
$
(5,083
)
 
$
(15,167
)
 
$
240,107

 
$
235,401

Other
91,383

 
87,953

 
48,800

 
39,686

 
42,583

 
48,267

 
1,907

 
(665
)
 
44,490

 
47,602

Consolidated total
534,668

 
536,437

 
246,895

 
237,602

 
287,773

 
298,835

 
(3,176
)
 
(15,832
)
 
284,597

 
283,003

Noncontrolling interests' share in consolidated subsidiaries
(28,232
)
 
(27,050
)
 
(10,829
)
 
(9,738
)
 
(17,403
)
 
(17,312
)
 
(60
)
 
544

 
(17,463
)
 
(16,768
)
Our share of partially owned entities
107,515

 
110,300

 
40,113

 
42,787

 
67,402

 
67,513

 
(1,945
)
 
(2,660
)
 
65,457

 
64,853

Vornado's share
$
613,951

 
$
619,687

 
$
276,179

 
$
270,651

 
$
337,772

 
$
349,036

 
$
(5,181
)
 
$
(17,948
)
 
$
332,591

 
$
331,088


 
For the Three Months Ended December 31, 2018
 
Total Revenues
 
Operating Expenses
 
NOI
 
Non-cash Adjustments(1)
 
NOI - cash basis
New York
$
466,554

 
$
206,696

 
$
259,858

 
$
(4,219
)
 
$
255,639

Other
76,863

 
47,624

 
29,239

 
1,572

 
30,811

Consolidated total
543,417

 
254,320

 
289,097

 
(2,647
)
 
286,450

Noncontrolling interests' share in consolidated subsidiaries
(30,436
)
 
(10,665
)
 
(19,771
)
 
96

 
(19,675
)
Our share of partially owned entities
98,363

 
38,158

 
60,205

 
(2,981
)
 
57,224

Vornado's share
$
611,344

 
$
281,813

 
$
329,531

 
$
(5,532
)
 
$
323,999

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

- vii -

 vornadologoa02.jpg

NON-GAAP RECONCILIATIONS
RECONCILIATION OF NOI AT SHARE TO SAME STORE NOI AT SHARE FOR THE THREE MONTHS ENDED MARCH 31, 2019 COMPARED TO MARCH 31, 2018
(unaudited and in thousands)
 
 
 
 
 
 
 
 
 
 
 
 
 
Total
 
New York
 
theMART
 
555 California Street
 
Other
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:
 
 
 
 
 
 
 
 
 
Acquisitions
(227
)
 
(227
)
 
—

 
—

 
—

Dispositions
2

 
2

 
—

 
—

 
—

Development properties
(11,710
)
 
(11,710
)
 
—

 
—

 
—

Lease termination income, net of write-offs of straight-line receivables and acquired below-market leases, net
1,902

 
1,902

 
—

 
—

 
—

Other non-same store income, net
(18,779
)
 
(558
)
 
(1,831
)
 
—

 
(16,390
)
Same store NOI at share for the three months ended March 31, 2019
$
308,960

 
$
272,767

 
$
21,692

 
$
14,501

 
$
—

 
 
 
 
 
 
 
 
 
 
NOI at share for the three months ended March 31, 2018
$
349,036

 
$
288,596

 
$
26,875

 
$
13,511

 
$
20,054

Less NOI at share from:
 
 
 
 
 
 
 
 
 
Acquisitions
(121
)
 
(121
)
 
—

 
—

 
—

Dispositions
(62
)
 
(62
)
 
—

 
—

 
—

Development properties
(13,686
)
 
(13,686
)
 
—

 
—

 
—

Lease termination income, net of write-offs of straight-line receivables and acquired below-market leases, net
(1,127
)
 
(1,127
)
 
—

 
—

 
—

Other non-same store income, net
(24,805
)
 
(551
)
 
(4,200
)
 
—

 
(20,054
)
Same store NOI at share for the three months ended March 31, 2018
$
309,235

 
$
273,049

 
$
22,675

 
$
13,511

 
$
—

 
 
 
 
 
 
 
 
 
 
(Decrease) increase in same store NOI at share for the three months ended March 31, 2019 compared to March 31, 2018
$
(275
)
 
$
(282
)
 
$
(983
)
 
$
990

 
$
—

 
 
 
 
 
 
 
 
 
 
% (decrease) increase in same store NOI at share
(0.1
)%
 
(0.1
)%
(1) 
(4.3
)%
 
7.3
%
 
—
%
 
 
 
 
 
 
 
 
 
 
____________________
(1)
Excluding Hotel Pennsylvania, same store NOI at share increased by 0.5%.

- viii -

 vornadologoa02.jpg

NON-GAAP RECONCILIATIONS
RECONCILIATION OF NOI AT SHARE TO SAME STORE NOI AT SHARE FOR THE THREE MONTHS ENDED MARCH 31, 2019 COMPARED TO DECEMBER 31, 2018
(unaudited and in thousands)
 
 
 
 
 
 
 
 
 
 
 
 
 
Total
 
New York
 
theMART
 
555 California Street
 
Other
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:
 
 
 
 
 
 
 
 
 
Dispositions
2

 
2

 
—

 
—

 
—

Development properties
(11,710
)
 
(11,710
)
 
—

 
—

 
—

Lease termination income, net of write-offs of straight-line receivables and acquired below-market leases, net
1,902

 
1,902

 
—

 
—

 
—

Other non-same store income, net
(18,780
)
 
(559
)
 
(1,831
)
 
—

 
(16,390
)
Same store NOI at share for the three months ended March 31, 2019
$
309,186

 
$
272,993

 
$
21,692

 
$
14,501

 
$
—

 
 
 
 
 
 
 
 
 
 
NOI at share for the three months ended December 31, 2018
$
329,531

 
$
295,199

 
$
10,981

 
$
14,005

 
$
9,346

Less NOI at share from:
 
 
 
 
 
 
 
 
 
Dispositions
19

 
19

 
—

 
—

 
—

Development properties
(12,986
)
 
(13,000
)
 
—

 
14

 
—

Lease termination income, net of write-offs of straight-line receivables and acquired below-market leases, net
(95
)
 
368

 
(463
)
 
—

 
—

Other non-same store income, net
(10,414
)
 
(1,068
)
 
—

 
—

 
(9,346
)
Same store NOI at share for the three months ended December 31, 2018
$
306,055

 
$
281,518

 
$
10,518

 
$
14,019

 
$
—

 
 
 
 
 
 
 
 
 
 
Increase (decrease) in same store NOI at share for the three months ended March 31, 2019 compared to December 31, 2018
$
3,131

 
$
(8,525
)
 
$
11,174

 
$
482

 
$
—

 
 
 
 
 
 
 
 
 
 
% increase (decrease) in same store NOI at share
1.0
%
 
(3.0
)%
(1) 
106.2
%
(2) 
3.4
%
 
—
%
____________________
(1)
Excluding Hotel Pennsylvania, same store NOI at share increased by 1.2%.
(2)
The three months ended December 31, 2018 includes an additional $12,124 real estate tax expense accrual due to an increase in the tax-assessed value of theMART.



- ix -

 vornadologoa02.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, 2019 COMPARED TO MARCH 31, 2018
(unaudited and in thousands)
 
 
 
 
 
 
 
 
 
 
 
 
 
Total
 
New York
 
theMART
 
555 California Street
 
Other
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:
 
 
 
 
 
 
 
 
 
Acquisitions
(228
)
 
(228
)
 
—

 
—

 
—

Dispositions
2

 
2

 
—

 
—

 
—

Development properties
(14,286
)
 
(14,286
)
 
—

 
—

 
—

Lease termination income
(429
)
 
(429
)
 
—

 
—

 
—

Other non-same store income, net
(18,585
)
 
(560
)
 
(1,831
)
 
—

 
(16,194
)
Same store NOI at share - cash basis for the three months ended March 31, 2019
$
299,065

 
$
261,239

 
$
23,081

 
$
14,745

 
$
—

 
 
 
 
 
 
 
 
 
 
NOI at share - cash basis for the three months ended March 31, 2018
$
331,088

 
$
271,273

 
$
27,079

 
$
12,826

 
$
19,910

Less NOI at share - cash basis from:
 
 
 
 
 
 
 
 
 
Acquisitions
(121
)
 
(121
)
 
—

 
—

 
—

Dispositions
(65
)
 
(65
)
 
—

 
—

 
—

Development properties
(14,945
)
 
(14,945
)
 
—

 
—

 
—

Lease termination income
(1,061
)
 
(1,061
)
 
—

 
—

 
—

Other non-same store income, net
(24,661
)
 
(551
)
 
(4,200
)
 
—

 
(19,910
)
Same store NOI at share - cash basis for the three months ended March 31, 2018
$
290,235

 
$
254,530

 
$
22,879

 
$
12,826

 
$
—

 
 
 
 
 
 
 
 
 
 
Increase (decrease) in same store NOI at share - cash basis for the three months ended March 31, 2019 compared to March 31, 2018
$
8,830

 
$
6,709

 
$
202

 
$
1,919

 
$
—

 
 
 
 
 
 
 
 
 
 
% increase (decrease) in same store NOI at share - cash basis
3.0
%
 
2.6
%
(1) 
0.9
%
 
15.0
%
 
—
%
____________________
(1)
Excluding Hotel Pennsylvania, same store NOI at share - cash basis increased by 3.3%.

- x -

 vornadologoa02.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, 2019 COMPARED TO DECEMBER 31, 2018
(unaudited and in thousands)
 
 
 
 
 
 
 
 
 
 
 
 
 
Total
 
New York
 
theMART
 
555 California Street
 
Other
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:
 
 
 
 
 
 
 
 
 
Dispositions
2

 
2

 
—

 
—

 
—

Development properties
(14,286
)
 
(14,286
)
 
—

 
—

 
—

Lease termination income
(429
)
 
(429
)
 
—

 
—

 
—

Other non-same store income, net
(18,585
)
 
(560
)
 
(1,831
)
 
—

 
(16,194
)
Same store NOI at share - cash basis for the three months ended March 31, 2019
$
299,293

 
$
261,467

 
$
23,081

 
$
14,745

 
$
—

 
 
 
 
 
 
 
 
 
 
NOI at share - cash basis for the three months ended December 31, 2018
$
323,999

 
$
288,933

 
$
12,758

 
$
13,784

 
$
8,524

Less NOI at share - cash basis from:
 
 
 
 
 
 
 
 
 
Dispositions
19

 
19

 
—

 
—

 
—

Development properties
(15,041
)
 
(15,055
)
 
—

 
14

 
—

Lease termination income
(563
)
 
(43
)
 
(520
)
 
—

 
—

Other non-same store income, net
(9,590
)
 
(1,066
)
 
—

 
—

 
(8,524
)
Same store NOI at share - cash basis for the three months ended December 31, 2018
$
298,824

 
$
272,788

 
$
12,238

 
$
13,798

 
$
—

 
 
 
 
 
 
 
 
 
 
Increase (decrease) in same store NOI at share - cash basis for the three months ended March 31, 2019 compared to December 31, 2018
$
469

 
$
(11,321
)
 
$
10,843

 
$
947

 
$
—

 
 
 
 
 
 
 
 
 
 
% increase (decrease) in same store NOI at share - cash basis
0.2
%
 
(4.2
)%
(1) 
88.6
%
(2) 
6.9
%
 
—
%
____________________
(1)
Excluding Hotel Pennsylvania, same store NOI at share - cash basis increased by 0.2%.
(2)
The three months ended December 31, 2018 includes an additional $12,124 real estate tax expense accrual due to an increase in the tax-assessed value of theMART.


- xi -

 vornadologoa02.jpg

NON-GAAP RECONCILIATIONS
RECONCILIATION OF CONSOLIDATED REVENUES TO OUR PRO RATA SHARE OF REVENUES (ANNUALIZED)
(unaudited and in thousands)
 
 
 
For the
Three Months Ended
March 31, 2019
Consolidated revenues
$
534,668

Noncontrolling interest adjustments
(28,232
)
Consolidated revenues at our share (non-GAAP)
506,436

Unconsolidated revenues at our share (non-GAAP)
107,515

Our pro rata share of revenues (non-GAAP)
$
613,951

Our pro rata share of revenues (annualized) (non-GAAP)
$
2,455,804



RECONCILIATION OF CONSOLIDATED DEBT, NET TO CONTRACTUAL DEBT (NON-GAAP)
(unaudited and in thousands)
 
 
 
 
 
 
 
As of March 31, 2019
 
Consolidated
Debt, net
 
Deferred Financing
Costs, Net and Other
 
Contractual
Debt (non-GAAP)
Mortgages payable
$
6,519,189

 
$
36,845

 
$
6,556,034

Senior unsecured notes
845,261

 
4,739

 
850,000

$750 Million unsecured term loan
745,076

 
4,924

 
750,000

$2.75 Billion unsecured revolving credit facilities
530,000

 
—

 
530,000

 
$
8,639,526

 
$
46,508

 
$
8,686,034


- xii -

 vornadologoa02.jpg

NON-GAAP RECONCILIATIONS
RECONCILIATION OF NET INCOME TO EBITDAre
(unaudited and 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,
2018
 
2019
 
2018
 
Reconciliation of net income to EBITDAre (non-GAAP):
 
 
 
 
 
Net income
$
213,044

 
$
282

 
$
97,821

Less net (income) loss attributable to noncontrolling interests in consolidated subsidiaries
(6,820
)
 
8,274

 
21,886

Net income attributable to the Operating Partnership
206,224

 
8,556

 
119,707

EBITDAre adjustments at share:
 
 
 
 
 
  Depreciation and amortization
134,986

 
130,208

 
129,866

  Interest and debt expense
128,068

 
116,232

 
106,267

  Income tax expense
29,924

 
2,561

 
32,797

  Net gains on sale of depreciable real estate
—

 
(305
)
 
—

  Real estate impairment losses
—

 
—

 
12,000

EBITDAre at share (non-GAAP)
499,202

 
257,252

 
400,637

EBITDAre attributable to noncontrolling interests in consolidated subsidiaries
19,809

 
4,318

 
(8,393
)
EBITDAre (non-GAAP)
$
519,011

 
$
261,570

 
$
392,244



- xiii -

 vornadologoa02.jpg

NON-GAAP RECONCILIATIONS
RECONCILIATION OF EBITDAre TO EBITDAre, AS ADJUSTED
(unaudited and in thousands)
 
 
For the Three Months Ended
 
March 31,
 
December 31,
2018
 
2019
 
2018
 
EBITDAre (non-GAAP)
$
519,011

 
$
261,570

 
$
392,244

 
 
 
 
 
 
EBITDAre attributable to noncontrolling interests in consolidated subsidiaries
(19,809
)
 
(4,318
)
 
8,393

 
 
 
 
 
 
Certain (income) expense items that impact EBITDAre:
 
 
 
 
 
Gain on sale of 220 CPS condominium units
(157,899
)
 
—

 
(81,224
)
Net gain from sale of investment in UE
(62,395
)
 
—

 
—

Mark-to-market (increase) decrease in Lexington common shares (sold on March 1, 2019)
(16,068
)
 
32,875

 
1,662

Mark-to-market decrease in PREIT common shares (accounted for as a marketable security from March 12, 2019)
15,649

 
—

 
—

Our share of EBITDAre from real estate fund investments (excluding our $4,252 share of One Park Avenue disputed additional transfer taxes for the three months ended March 31, 2018)
2,904

 
(814
)
 
24,366

Our share of disputed additional New York City transfer taxes based on a Tax Tribunal interpretation
—

 
23,503

 
—

Previously capitalized internal leasing costs(1)
—

 
(1,348
)
 
(1,655
)
Purchase price fair value adjustment related to the increase in ownership of the Farley joint venture
—

 
—

 
(44,060
)
Other
23

 
(3,310
)
 
3,817

Total of certain (income) expense items that impact EBITDAre
(217,786
)
 
50,906

 
(97,094
)
 
 
 
 
 
 
EBITDAre, as adjusted (non-GAAP)
$
281,416

 
$
308,158

 
$
303,543

____________________________________________________________
(1)
"EBITDAre, as adjusted" for the three months ended March 31, 2018 and December 31, 2018 have been reduced by $1,348 and $1,655, respectively, for previously capitalized internal leasing costs to present 2018 “as adjusted” financial results on a comparable basis with the current year as a result of the January 1, 2019 adoption of a new GAAP accounting standard under which internal leasing costs can no longer be capitalized.



- xiv -


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