10-Q 1 vno1q2013.htm FORM 10-Q vno1q2013.htm - Generated by SEC Publisher for SEC Filing

 

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

(Mark one)

 

x

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)   

OF THE SECURITIES EXCHANGE ACT OF 1934

 

 

For the quarterly period ended:   

March 31, 2013

 

 

Or

 

o

TRANSITION REPORT PURSUANT TO SECTION  13 OR 15(d)

OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the transition period from:

 

to

 

 

Commission File Number:

001-11954

 

 

VORNADO REALTY TRUST

(Exact name of registrant as specified in its charter)

 

Maryland

 

22-1657560

(State or other jurisdiction of incorporation or organization)

 

(I.R.S. Employer Identification Number)

 

 

 

888 Seventh Avenue, New York, New York

 

10019

(Address of principal executive offices)

 

(Zip Code)

 

 

(212) 894-7000

(Registrant’s telephone number, including area code)

 

N/A

(Former name, former address and former fiscal year, if changed since last report)

 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.  Yes No

 

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate website, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).  Yes No

 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company.  See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

 

x Large Accelerated Filer

 

o Accelerated Filer

o Non-Accelerated Filer (Do not check if smaller reporting company)

 

o Smaller Reporting Company

 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).  Yes No

 

As of March 31, 2013, 186,935,027 of the registrant’s common shares of beneficial interest are outstanding.

 

 


 

 

 

 

 

 

 

 

 

 

PART I.

 

Financial Information:

 

Page Number

 

 

 

 

 

 

 

 

 

Item 1.

 

Financial Statements:

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated Balance Sheets (Unaudited) as of

 

 

 

 

 

 

March 31, 2013 and December 31, 2012

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated Statements of Income (Unaudited) for the

 

 

 

 

 

 

Three Months Ended March 31, 2013 and 2012

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated Statements of Comprehensive Income (Unaudited)

 

 

 

 

 

 

for the Three Months Ended March 31, 2013 and 2012

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated Statements of Changes in Equity (Unaudited) for the

 

 

 

 

 

 

Three Months Ended March 31, 2013 and 2012

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated Statements of Cash Flows (Unaudited) for the

 

 

 

 

 

 

Three Months Ended March 31, 2013 and 2012

 

 

 

 

 

 

 

 

 

 

 

 

Notes to Consolidated Financial Statements (Unaudited)

 

10 

 

 

 

 

 

 

 

 

 

 

 

Report of Independent Registered Public Accounting Firm

 

36 

 

 

 

 

 

 

 

 

 

Item 2.

 

Management's Discussion and Analysis of Financial Condition

 

 

 

 

 

 

and Results of Operations

 

37 

 

 

 

 

 

 

 

 

 

Item 3.

 

Quantitative and Qualitative Disclosures About Market Risk

 

62 

 

 

 

 

 

 

 

 

 

Item 4.

 

Controls and Procedures

 

63 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

PART II.

 

 

Other Information:

 

 

 

 

 

 

 

 

 

 

 

Item 1.

 

Legal Proceedings

 

64 

 

 

 

 

 

 

 

 

 

Item 1A.

 

Risk Factors

 

64 

 

 

 

 

 

 

 

 

 

Item 2.

 

Unregistered Sales of Equity Securities and Use of Proceeds

 

64 

 

 

 

 

 

 

 

 

 

Item 3.

 

Defaults Upon Senior Securities

 

64 

 

 

 

 

 

 

 

 

 

Item 4.

 

Mine Safety Disclosures

 

64 

 

 

 

 

 

 

 

 

 

Item 5.

 

Other Information

 

64 

 

 

 

 

 

 

 

 

 

Item 6.

 

Exhibits

 

64 

 

 

 

 

 

 

 

SIGNATURES

 

 

 

65 

 

 

 

 

 

 

 

EXHIBIT INDEX

 

 

 

66 

 

 

 

 

 

 

 

2

 


 

 

 

PART I. FINANCIAL INFORMATION

Item 1.    Financial Statements

 

VORNADO REALTY TRUST

CONSOLIDATED BALANCE SHEETS

(UNAUDITED)

 

 

 

 

 

 

 

 

 

(Amounts in thousands, except share and per share amounts)

 

March 31,

 

December 31,

ASSETS

 

2013 

 

2012 

Real estate, at cost:

 

 

 

 

 

 

 

Land

 

$

4,798,418 

 

$

4,797,773 

 

Buildings and improvements

 

 

12,509,959 

 

 

12,496,660 

 

Development costs and construction in progress

 

 

953,162 

 

 

920,654 

 

Leasehold improvements and equipment

 

 

131,535 

 

 

130,077 

 

 

Total

 

 

18,393,074 

 

 

18,345,164 

 

Less accumulated depreciation and amortization

 

 

(3,181,760)

 

 

(3,087,561)

Real estate, net

 

 

15,211,314 

 

 

15,257,603 

Cash and cash equivalents

 

 

585,823 

 

 

960,319 

Restricted cash

 

 

168,379 

 

 

183,256 

Marketable securities

 

 

382,987 

 

 

398,188 

Tenant and other receivables, net of allowance for doubtful accounts of $34,607 and $37,674

 

 

144,204 

 

 

195,718 

Investments in partially owned entities

 

 

1,198,016 

 

 

1,226,256 

Investment in Toys "R" Us

 

 

474,466 

 

 

478,041 

Real Estate Fund investments

 

 

571,306 

 

 

600,786 

Mortgage and mezzanine loans receivable

 

 

225,221 

 

 

225,359 

Receivable arising from the straight-lining of rents, net of allowance of $3,678 and $3,165

 

 

777,608 

 

 

760,699 

Deferred leasing and financing costs, net of accumulated amortization of $233,769 and $224,509

 

 

411,130 

 

 

407,745 

Identified intangible assets, net of accumulated amortization of $363,211 and $350,162

 

 

393,771 

 

 

424,038 

Assets related to discontinued operations

 

 

260,798 

 

 

565,962 

Other assets

 

 

321,104 

 

 

381,079 

 

 

 

 

$

21,126,127 

 

$

22,065,049 

 

 

 

 

 

 

 

 

 

LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND EQUITY

 

 

 

 

 

 

Mortgages payable

 

$

9,063,084 

 

$

8,663,326 

Senior unsecured notes

 

 

1,358,095 

 

 

1,358,008 

Revolving credit facility debt

 

 

 

 

1,170,000 

Accounts payable and accrued expenses

 

 

426,621 

 

 

484,746 

Deferred revenue

 

 

586,237 

 

 

597,380 

Deferred compensation plan

 

 

109,483 

 

 

105,200 

Deferred tax liabilities

 

 

15,453 

 

 

15,305 

Liabilities related to discontinued operations

 

 

103,609 

 

 

420,508 

Other liabilities

 

 

447,853 

 

 

402,280 

 

Total liabilities

 

 

12,110,435 

 

 

13,216,753 

Commitments and contingencies

 

 

 

 

 

 

Redeemable noncontrolling interests:

 

 

 

 

 

 

 

Class A units - 11,347,226 and 11,215,682 units outstanding

 

 

949,082 

 

 

898,152 

 

Series D cumulative redeemable preferred units - 1,800,001 units outstanding

 

 

46,000 

 

 

46,000 

 

 

Total redeemable noncontrolling interests

 

 

995,082 

 

 

944,152 

Vornado shareholders' equity:

 

 

 

 

 

 

 

Preferred shares of beneficial interest: no par value per share; authorized 110,000,000

 

 

 

 

 

 

 

 

shares; issued and outstanding 52,684,609 and 51,184,609 shares

 

 

1,277,719 

 

 

1,240,278 

 

Common shares of beneficial interest: $.04 par value per share; authorized

 

 

 

 

 

 

 

 

250,000,000 shares; issued and outstanding 186,935,027 and 186,734,711 shares

 

 

7,447 

 

 

7,440 

 

Additional capital

 

 

7,167,959 

 

 

7,195,438 

 

Earnings less than distributions

 

 

(1,479,296)

 

 

(1,573,275)

 

Accumulated other comprehensive income (loss)

 

 

120,953 

 

 

(18,946)

 

 

Total Vornado shareholders' equity

 

 

7,094,782 

 

 

6,850,935 

Noncontrolling interests in consolidated subsidiaries

 

 

925,828 

 

 

1,053,209 

 

Total equity

 

 

8,020,610 

 

 

7,904,144 

 

 

 

 

$

21,126,127 

 

$

22,065,049 

 

 

 

 

 

 

 

 

 

See notes to consolidated financial statements (unaudited).

3

 


 

 

 

VORNADO REALTY TRUST

CONSOLIDATED STATEMENTS OF INCOME

(UNAUDITED)

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Three

 

 

 

 

Months Ended March 31,

(Amounts in thousands, except per share amounts)

 

2013 

 

2012 

 

 

 

 

 

 

 

REVENUES:

 

 

 

 

 

 

 

Property rentals

 

$

534,635 

 

$

510,111 

 

Tenant expense reimbursements

 

 

77,013 

 

 

70,793 

 

Cleveland Medical Mart development project

 

 

12,143 

 

 

55,059 

 

Fee and other income

 

 

97,225 

 

 

33,278 

Total revenues

 

 

721,016 

 

 

669,241 

EXPENSES:

 

 

 

 

 

 

 

Operating

 

 

260,569 

 

 

246,746 

 

Depreciation and amortization

 

 

142,354 

 

 

131,541 

 

General and administrative

 

 

54,582 

 

 

55,290 

 

Cleveland Medical Mart development project

 

 

11,374 

 

 

52,761 

 

Acquisition related costs

 

 

601 

 

 

685 

Total expenses

 

 

469,480 

 

 

487,023 

Operating income

 

 

251,536 

 

 

182,218 

Income applicable to Toys "R" Us

 

 

1,759 

 

 

116,471 

Income from partially owned entities

 

 

20,766 

 

 

19,660 

Income from Real Estate Fund

 

 

16,564 

 

 

11,762 

Interest and other investment (loss) income, net

 

 

(49,074)

 

 

15,665 

Interest and debt expense

 

 

(121,888)

 

 

(130,059)

Net loss on disposition of wholly owned and partially owned assets

 

 

(36,724)

 

 

Income before income taxes

 

 

82,939 

 

 

215,717 

Income tax expense

 

 

(1,073)

 

 

(6,825)

Income from continuing operations

 

 

81,866 

 

 

208,892 

Income from discontinued operations

 

 

207,061 

 

 

71,372 

Net income

 

 

288,927 

 

 

280,264 

Less net income attributable to noncontrolling interests in:

 

 

 

 

 

 

 

Consolidated subsidiaries

 

 

(11,286)

 

 

(9,597)

 

Operating Partnership

 

 

(13,933)

 

 

(15,271)

 

Preferred unit distributions of the Operating Partnership

 

 

(786)

 

 

(3,874)

Net income attributable to Vornado

 

 

262,922 

 

 

251,522 

Preferred share dividends

 

 

(21,702)

 

 

(17,787)

Preferred share redemptions

 

 

(9,230)

 

 

NET INCOME attributable to common shareholders

 

$

231,990 

 

$

233,735 

 

 

 

 

 

 

 

 

 

INCOME PER COMMON SHARE - BASIC:

 

 

 

 

 

 

 

Income from continuing operations, net

 

$

0.20 

 

$

0.90 

 

Income from discontinued operations, net

 

 

1.04 

 

 

0.36 

 

Net income per common share

 

$

1.24 

 

$

1.26 

 

Weighted average shares outstanding

 

 

186,752 

 

 

185,370 

 

 

 

 

 

 

 

 

 

INCOME PER COMMON SHARE - DILUTED:

 

 

 

 

 

 

 

Income from continuing operations, net

 

$

0.20 

 

$

0.90 

 

Income from discontinued operations, net

 

 

1.04 

 

 

0.35 

 

Net income per common share

 

$

1.24 

 

$

1.25 

 

Weighted average shares outstanding

 

 

187,529 

 

 

191,886 

 

 

 

 

 

 

 

 

 

DIVIDENDS PER COMMON SHARE

 

$

0.73 

 

$

0.69 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

See notes to consolidated financial statements (unaudited).

4

 


 

 

 

VORNADO REALTY TRUST

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(UNAUDITED)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Three

 

 

 

 

Months Ended March 31,

(Amounts in thousands)

 

2013 

 

2012 

 

 

 

 

 

 

 

 

Net income

 

$

288,927 

 

$

280,264 

Other comprehensive income (loss):

 

 

 

 

 

 

 

Change in unrealized net gain on securities available-for-sale

 

 

148,789 

 

 

12,693 

 

Pro rata share of other comprehensive loss of

 

 

 

 

 

 

 

 

nonconsolidated subsidiaries

 

 

(3,647)

 

 

(21,944)

 

Change in value of interest rate swap

 

 

2,523 

 

 

2,386 

 

Other

 

 

533 

 

 

(123)

Comprehensive income

 

 

437,125 

 

 

273,276 

Less comprehensive income attributable to noncontrolling interests

 

 

(34,304)

 

 

(28,309)

Comprehensive income attributable to Vornado

 

$

402,821 

 

$

244,967 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

See notes to consolidated financial statements (unaudited).

5

 


 

 

 

VORNADO REALTY TRUST

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

(UNAUDITED)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accumulated

 

controlling

 

 

 

(Amounts in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings

 

Other

 

Interests in

 

 

 

 

 

 

 

Preferred Shares

 

Common Shares

 

Additional

 

Less Than

 

Comprehensive

 

Consolidated

 

Total

 

 

 

 

Shares

 

Amount

 

Shares

 

Amount

 

Capital

 

Distributions

 

Income (Loss)

 

Subsidiaries

 

Equity

Balance, December 31, 2011

 

 

42,187 

 

$

1,021,660 

 

 

185,080 

 

$

7,373 

 

$

7,127,258 

 

$

(1,401,704)

 

$

73,729 

 

$

680,131 

 

$

7,508,447 

Net income

 

 

 

 

 

 

 

 

 

 

 

 

251,522 

 

 

 

 

9,597 

 

 

261,119 

Dividends on common shares

 

 

 

 

 

 

 

 

 

 

 

 

(127,973)

 

 

 

 

 

 

(127,973)

Dividends on preferred shares

 

 

 

 

 

 

 

 

 

 

 

 

(17,787)

 

 

 

 

 

 

(17,787)

Common shares issued:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Upon redemption of Class A

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

units, at redemption value

 

 

 

 

 

 

158 

 

 

 

 

13,022 

 

 

 

 

 

 

 

 

13,028 

 

Under employees' share

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

option plan

 

 

 

 

 

 

389 

 

 

16 

 

 

7,562 

 

 

(16,389)

 

 

 

 

 

 

(8,811)

 

Under dividend reinvestment plan

 

 

 

 

 

 

 

 

 

 

411 

 

 

 

 

 

 

 

 

411 

Distributions:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Real Estate Fund

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(21,856)

 

 

(21,856)

Conversion of Series A preferred

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

shares to common shares

 

 

(2)

 

 

(105)

 

 

 

 

 

 

105 

 

 

 

 

 

 

 

 

Deferred compensation shares

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

and options

 

 

 

 

 

 

 

 

 

 

5,915 

 

 

(339)

 

 

 

 

 

 

5,577 

Change in unrealized net gain

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

on securities available-for-sale

 

 

 

 

 

 

 

 

 

 

 

 

 

 

12,693 

 

 

 

 

12,693 

Pro rata share of other

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

comprehensive loss of

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

nonconsolidated subsidiaries

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(21,944)

 

 

 

 

(21,944)

Change in value of interest rate swap

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2,386 

 

 

 

 

2,386 

Adjustments to carry redeemable

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Class A units at redemption value

 

 

 

 

 

 

 

 

 

 

(96,061)

 

 

 

 

 

 

 

 

(96,061)

Redeemable noncontrolling interests'

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

share of above adjustments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

433 

 

 

 

 

433 

Other

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(123)

 

 

(2)

 

 

(125)

Balance, March 31, 2012

 

 

42,185 

 

$

1,021,555 

 

 

185,642 

 

$

7,396 

 

$

7,058,212 

 

$

(1,312,670)

 

$

67,174 

 

$

667,870 

 

$

7,509,537 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

See notes to consolidated financial statements (unaudited).

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

6

 


 

 

 

VORNADO REALTY TRUST

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY - CONTINUED

(UNAUDITED)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accumulated

 

controlling

 

 

 

(Amounts in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings

 

Other

 

Interests in

 

 

 

 

 

 

 

Preferred Shares

 

Common Shares

 

Additional

 

Less Than

 

Comprehensive

 

Consolidated

 

Total

 

 

 

 

Shares

 

Amount

 

Shares

 

Amount

 

Capital

 

Distributions

 

Income (Loss)

 

Subsidiaries

 

Equity

Balance, December 31, 2012

 

 

51,185 

 

$

1,240,278 

 

 

186,735 

 

$

7,440 

 

$

7,195,438 

 

$

(1,573,275)

 

$

(18,946)

 

$

1,053,209 

 

$

7,904,144 

Net income

 

 

 

 

 

 

 

 

 

 

 

 

262,922 

 

 

 

 

11,286 

 

 

274,208 

Dividends on common shares

 

 

 

 

 

 

 

 

 

 

 

 

(136,342)

 

 

 

 

 

 

(136,342)

Dividends on preferred shares

 

 

 

 

 

 

 

 

 

 

 

 

(21,702)

 

 

 

 

 

 

(21,702)

Issuance of Series L preferred shares

 

 

12,000 

 

 

290,710 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

290,710 

Redemption of Series F and Series H

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

preferred shares

 

 

(10,500)

 

 

(253,269)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(253,269)

Common shares issued:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Upon redemption of Class A

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

units, at redemption value

 

 

 

 

 

 

162 

 

 

 

 

13,399 

 

 

 

 

 

 

 

 

13,404 

 

Under employees' share

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

option plan

 

 

 

 

 

 

27 

 

 

 

 

1,175 

 

 

 

 

 

 

 

 

1,176 

 

Under dividend reinvestment plan

 

 

 

 

 

 

 

 

 

 

433 

 

 

 

 

 

 

 

 

433 

Contributions:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Real Estate Fund

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

10,251 

 

 

10,251 

 

Other

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

14,316 

 

 

14,316 

Distributions:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Real Estate Fund

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(43,145)

 

 

(43,145)

 

Other

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(120,051)

 

 

(120,051)

Deferred compensation shares

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

and options

 

 

 

 

 

 

 

 

 

 

2,512 

 

 

(305)

 

 

 

 

 

 

2,208 

Change in unrealized net gain on

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

securities available-for-sale

 

 

 

 

 

 

 

 

 

 

 

 

 

 

148,789 

 

 

 

 

148,789 

Pro rata share of other

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

comprehensive loss of

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

nonconsolidated subsidiaries

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(3,647)

 

 

 

 

(3,647)

Change in value of interest rate swap

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2,523 

 

 

 

 

2,523 

Adjustments to carry redeemable

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Class A units at redemption value

 

 

 

 

 

 

 

 

 

 

(44,998)

 

 

 

 

 

 

 

 

(44,998)

Redeemable noncontrolling interests'

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

share of above adjustments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(8,299)

 

 

 

 

(8,299)

Preferred share redemptions

 

 

 

 

 

 

 

 

 

 

 

 

(9,230)

 

 

 

 

 

 

(9,230)

Other

 

 

 

 

 

 

 

 

 

 

 

 

(1,364)

 

 

533 

 

 

(38)

 

 

(869)

Balance, March 31, 2013

 

 

52,685 

 

$

1,277,719 

 

 

186,935 

 

$

7,447 

 

$

7,167,959 

 

$

(1,479,296)

 

$

120,953 

 

$

925,828 

 

$

8,020,610 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

See notes to consolidated financial statements (unaudited).

7

 


 

 

 

VORNADO REALTY TRUST

CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED)

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Three Months Ended

 

 

 

 

March 31,

 

 

 

 

2013 

 

2012 

(Amounts in thousands)

 

 

 

 

 

 

Cash Flows from Operating Activities:

 

 

 

 

 

 

Net income

 

$

288,927 

 

$

280,264 

Adjustments to reconcile net income to net cash provided by operating activities:

 

 

 

 

 

 

 

Net gains on sale of real estate

 

 

(202,329)

 

 

(55,817)

 

Depreciation and amortization (including amortization of deferred financing costs)

 

 

148,918 

 

 

145,304 

 

Return of capital from Real Estate Fund investments

 

 

56,664 

 

 

 

Non-cash impairment loss on J.C. Penney owned shares

 

 

39,487 

 

 

 

Net loss on disposition of wholly owned and partially owned assets

 

 

36,724 

 

 

 

Equity in net income of partially owned entities, including Toys “R” Us

 

 

(22,525)

 

 

(136,131)

 

Loss (income) from the mark-to-market of J.C. Penney derivative position

 

 

22,540 

 

 

(1,045)

 

Straight-lining of rental income

 

 

(18,868)

 

 

(21,808)

 

Other non-cash adjustments

 

 

18,569 

 

 

7,795 

 

Amortization of below-market leases, net

 

 

(16,815)

 

 

(13,813)

 

Net unrealized gain on Real Estate Fund investments

 

 

(13,516)

 

 

(6,844)

 

Distributions of income from partially owned entities

 

 

10,627 

 

 

14,194 

 

Impairment losses

 

 

1,514 

 

 

 

Changes in operating assets and liabilities:

 

 

 

 

 

 

 

 

Real Estate Fund investments

 

 

(13,668)

 

 

28,980 

 

 

Accounts receivable, net

 

 

51,514 

 

 

(19,386)

 

 

Prepaid assets

 

 

67,814 

 

 

51,202 

 

 

Other assets

 

 

(15,326)

 

 

(9,245)

 

 

Accounts payable and accrued expenses

 

 

(21,908)

 

 

40,609 

 

 

Other liabilities

 

 

(3,416)

 

 

2,844 

Net cash provided by operating activities

 

 

414,927 

 

 

307,103 

 

 

 

 

 

 

 

 

 

Cash Flows from Investing Activities:

 

 

 

 

 

 

 

Proceeds from sales of real estate and related investments

 

 

499,369 

 

 

306,022 

 

Proceeds from sales of marketable securities

 

 

160,300 

 

 

 

Funding of J.C. Penney derivative collateral

 

 

(58,522)

 

 

 

Return of J.C. Penney derivative collateral

 

 

38,900 

 

 

 

Additions to real estate

 

 

(57,460)

 

 

(44,052)

 

Investments in partially owned entities

 

 

(39,892)

 

 

(46,732)

 

Development costs and construction in progress

 

 

(35,334)

 

 

(20,614)

 

Restricted cash

 

 

14,149 

 

 

(19,355)

 

Distributions of capital from partially owned entities

 

 

5,544 

 

 

4,203 

 

Proceeds from repayments of mezzanine loans and other

 

 

631 

 

 

554 

 

Acquisitions of real estate and other

 

 

 

 

(21,054)

 

Proceeds from the repayment of loan to officer

 

 

 

 

13,123 

Net cash provided by investing activities

 

 

527,685 

 

 

172,095 

 

 

 

 

 

 

 

 

 

See notes to consolidated financial statements (unaudited).

 

 

 

 

 

 

 

 

 

 

8

 


 

 

 

VORNADO REALTY TRUST

CONSOLIDATED STATEMENTS OF CASH FLOWS - CONTINUED

(UNAUDITED)