Document
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| INDEX | | | | |
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| BUSINESS DEVELOPMENTS | | - | | |
| FINANCIAL INFORMATION | | | | |
| Financial Highlights | | | | |
| FFO, As Adjusted Bridge | | | | |
| Consolidated Balance Sheets | | | | |
| Net Income Attributable to Common Shareholders (Consolidated and by Segment) | | - | | |
| Net Operating Income at Share and Net Operating Income at Share - Cash Basis (by Segment and by Subsegment) | | - | | |
| Same Store NOI at Share and Same Store NOI at Share - Cash Basis | | | | |
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| DEVELOPMENT/REDEVELOPMENT - ACTIVE PROJECTS AND FUTURE OPPORTUNITIES | | | | |
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| LEASING ACTIVITY AND LEASE EXPIRATIONS | | | | |
| Leasing Activity | | - | | |
| Lease Expirations | | - | | |
| CAPITAL EXPENDITURES, TENANT IMPROVEMENTS AND LEASING COMMISSIONS | | - | | |
| UNCONSOLIDATED JOINT VENTURES | | - | | |
| DEBT AND CAPITALIZATION | | | | |
| Capital Structure | | | | |
| Common Shares Data | | | | |
| Debt Analysis | | | | |
| Hedging Instruments | | | | |
| Consolidated Debt Maturities | | | | |
| PROPERTY STATISTICS | | | | |
| Top 30 Tenants | | | | |
| Square Footage | | | | |
| Occupancy and Residential Statistics | | | | |
| Ground Leases | | | | |
| Property Table | | - | | |
| EXECUTIVE OFFICERS AND RESEARCH COVERAGE | | | | |
| APPENDIX: DEFINITIONS AND NON-GAAP RECONCILIATIONS | | | | |
| Definitions | | | | |
| Reconciliations | | - | | |
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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, projected incremental cash yield, stabilization date and cost to complete; estimates of future capital expenditures, dividends to common and preferred shareholders and operating partnership distributions, including the form of any 2023 dividend payments, and the amount and form of potential share repurchases and/or asset sales. 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. Currently, some of the factors are the impacts of the increase in interest rates and inflation on our business, financial condition, results of operations, cash flows, operating performance and the effect that these factors have had and may continue to have on our tenants, the global, national, regional and local economies and financial markets and the real estate market in general. For further discussion of factors that could materially affect the outcome of our forward-looking statements, see "Item 1A. Risk Factors" in Part I of our Annual Report on Form 10-K for the year ended December 31, 2022. 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 Vornado Realty Trust and subsidiaries (the "Company") considers the most directly comparable financial measures calculated and presented in accordance with accounting principles generally accepted in the United States of America ("GAAP"). These include Funds From Operations ("FFO"), Funds Available for Distribution ("FAD"), Net Operating Income ("NOI") and Earnings Before Interest, Taxes, Depreciation and Amortization for Real Estate ("EBITDAre"). 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 on page i in the Appendix.This supplemental package should be read in conjunction with the Company’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2023 and the Company’s Supplemental Fixed Income Data package for the quarter ended September 30, 2023, both of which can be accessed at the Company’s website www.vno.com.
Sunset Pier 94 Studios Joint Venture
On August 28, 2023, we, together with Hudson Pacific Properties and Blackstone Inc., formed a joint venture (“Pier 94 JV”) to develop a 266,000 square foot purpose-built studio campus at Pier 94 in Manhattan (“Sunset Pier 94 Studios”). In connection therewith:
•We contributed our Pier 94 leasehold interest to the joint venture in exchange for a 49.9% common equity interest and an initial capital account of $47,944,000, comprised of (i) the $40,000,000 value of our Pier 94 leasehold interest contribution and (ii) a $7,944,000 credit for pre-development costs incurred. Hudson Pacific Properties (“HPP”) and Blackstone Inc. (together, “HPP/BX”) received an aggregate 50.1% common equity interest in Pier 94 JV and an initial capital account of $22,976,000 in exchange for (i) a $15,000,000 cash contribution upon the joint venture’s formation and (ii) a $7,976,000 credit for pre-development costs incurred. HPP/BX will fund 100% of cash contributions until such time that its capital account is equal to Vornado’s, after which equity will be funded in accordance with each partner’s respective ownership interest.
•The lease of Pier 94 with the City of New York was amended and restated to allow for the contribution to Pier 94 JV and to remove Pier 92 from the lease’s demised premises. The amended and restated lease expires in 2060 with five 10-year renewal options.
•Pier 94 JV closed on a $183,200,000 construction loan facility ($100,000 outstanding as of September 30, 2023) which bears interest at SOFR plus 4.75% and matures in September 2025, with one one-year as-of-right extension option and two one-year extension options subject to certain conditions. VRLP and the other partners provided a joint and several completion guarantee.
The development cost of the project is estimated to be $350,000,000, which will be funded with $183,200,000 of construction financing (described above) and $166,800,000 of equity contributions. Our share of equity contributions will be funded by (i) our $40,000,000 Pier 94 leasehold interest contribution and (ii) $34,000,000 of cash contributions, which are net of an estimated $9,000,000 for our share of development fees and reimbursement for overhead costs incurred by us.
Upon contribution of the Pier 94 leasehold, we recognized a $35,968,000 net gain primarily due to the step-up of our retained investment in the leasehold interest to fair value. The net gain was included in “net gains on disposition of wholly owned and partially owned assets” on our consolidated statements of income for the three and nine months ended September 30, 2023.
Dividends/Share Repurchase Program
On April 26, 2023, we announced the postponement of dividends on our common shares until the end of 2023, at which time, upon finalization of our 2023 taxable income, including the impact of asset sales, we will pay the 2023 dividend in either (i) cash, or (ii) a combination of cash and securities, as determined by our Board of Trustees. Cash retained from dividends or from asset sales will be used to reduce debt and/or to fund the share repurchase program discussed below.
We also announced that our Board of Trustees has authorized the repurchase of up to $200,000,000 of our outstanding common shares under a newly established share repurchase program.
During the three months ended September 30, 2023, we repurchased 302,200 common shares for $5,927,000 at an average price per share of $19.61. In total, we have repurchased 2,024,495 common shares under the program at an average price per share of $14.40. As of September 30, 2023, $170,857,000 remained available and authorized for repurchases.
350 Park Avenue
On January 24, 2023, we and the Rudin family (“Rudin”) completed agreements with Citadel Enterprise Americas LLC (“Citadel”) and with an affiliate of Kenneth C. Griffin, Citadel’s Founder and CEO (“KG”), for a series of transactions relating to 350 Park Avenue and 40 East 52nd Street.
Pursuant to the agreements, Citadel master leases 350 Park Avenue, a 585,000 square foot Manhattan office building, on an “as is” basis for ten years, with an initial annual net rent of $36,000,000. Per the terms of the lease, no tenant allowance or free rent was provided. Citadel has also master leased Rudin’s adjacent property at 40 East 52nd Street (390,000 square feet).
In addition, we entered into a joint venture with Rudin (the “Vornado/Rudin JV”) which was formed to purchase 39 East 51st Street. Upon formation of the KG joint venture described below, 39 East 51st Street will be combined with 350 Park Avenue and 40 East 52nd Street to create a premier development site (collectively, the “Site”). On June 20, 2023, the Vornado/Rudin JV completed the purchase of 39 East 51st Street for $40,000,000, which was funded on a 50/50 basis by Vornado and Rudin.
From October 2024 to June 2030, KG will have the option to either:
•acquire a 60% interest in a joint venture with the Vornado/Rudin JV that would value the Site at $1.2 billion ($900,000,000 to Vornado and $300,000,000 to Rudin) and build a new 1,700,000 square foot office tower (the “Project”) pursuant to East Midtown Subdistrict zoning with the Vornado/Rudin JV as developer. KG would own 60% of the joint venture and the Vornado/Rudin JV would own 40% (with Vornado owning 36% and Rudin owning 4% of the joint venture along with a $250,000,000 preferred equity interest in the Vornado/Rudin JV).
◦at the joint venture formation, Citadel or its affiliates will execute a pre-negotiated 15-year anchor lease with renewal options for approximately 850,000 square feet (with expansion and contraction rights) at the Project for its primary office in New York City;
◦the rent for Citadel’s space will be determined by a formula based on a percentage return (that adjusts based on the actual cost of capital) on the total Project cost;
◦the master leases will terminate at the scheduled commencement of demolition;
•or, exercise an option to purchase the Site for $1.4 billion ($1.085 billion to Vornado and $315,000,000 to Rudin), in which case the Vornado/Rudin JV would not participate in the new development.
Further, the Vornado/Rudin JV will have the option from October 2024 to September 2030 to put the Site to KG for $1.2 billion ($900,000,000 to Vornado and $300,000,000 to Rudin). For ten years following any put option closing, unless the put option is exercised in response to KG’s request to form the joint venture or KG makes a $200,000,000 termination payment, the Vornado/Rudin JV will have the right to invest in a joint venture with KG on the terms described above if KG proceeds with development of the Site.
Dispositions
Alexander's, Inc. ("Alexander's")
On May 19, 2023, Alexander's completed the sale of the Rego Park III land parcel, located in Queens, New York, for $71,060,000, inclusive of consideration for Brownfield tax benefits and reimbursement of costs for plans, specifications and improvements to date. As a result of the sale, we recognized our $16,396,000 share of the net gain and received a $711,000 sales commission from Alexander’s, of which $250,000 was paid to a third-party broker.
The Armory Show
On July 3, 2023, we completed the sale of The Armory Show, located in New York, for $24,410,000, subject to certain post-closing adjustments, and realized net proceeds of $22,489,000. In connection with the sale, we recognized a net gain of $20,181,000 which is included in “net gains on disposition of wholly owned and partially owned assets” on our consolidated statements of income.
Manhattan Retail Properties Sale
On August 10, 2023, we completed the sale of four Manhattan retail properties located at 510 Fifth Avenue, 148–150 Spring Street, 443 Broadway and 692 Broadway for $100,000,000 and realized net proceeds of $95,450,000. In connection with the sale, we recognized an impairment loss of $625,000 which is included in “transaction related costs and other” on our consolidated statements of income.
Financing Activity
150 West 34th Street
On January 9, 2023, our $105,000,000 participation in the $205,000,000 mortgage loan on 150 West 34th Street was repaid, which reduced “other assets” and “mortgages payable, net” on our consolidated balance sheets by $105,000,000.
On October 4, 2023, we completed a $75,000,000 refinancing of 150 West 34th Street, of which $25,000,000 is recourse to the Operating Partnership. The interest-only loan bears a rate of SOFR plus 2.15% and matures in February 2025, with three one-year as-of-right extension options and an additional one-year extension option available subject to satisfying a loan-to-value test. The interest rate on the loan is subject to an interest rate cap arrangement with a SOFR strike rate of 5.00%, which matures in February 2026. The loan replaces the previous $100,000,000 loan, which bore interest at SOFR plus 1.86%.
697-703 Fifth Avenue (Fifth Avenue and Times Square JV)
On June 14, 2023, the Fifth Avenue and Times Square JV completed a restructuring of the 697-703 Fifth Avenue $421,000,000 non-recourse mortgage loan, which matured in December 2022. The restructured $355,000,000 loan, which had its principal reduced through an application of property-level reserves and funds from the partners, was split into (i) a $325,000,000 senior note, which bears interest at SOFR plus 2.00%, and (ii) a $30,000,000 junior note, which accrues interest at a fixed rate of 4.00%. The restructured loan matures in March 2028, as fully extended. Any amounts funded for future re-leasing of the property will be senior to the $30,000,000 junior note.
512 West 22nd Street
On June 28, 2023, a joint venture, in which we have a 55% interest, completed a $129,250,000 refinancing of 512 West 22nd Street, a 173,000 square foot Manhattan office building. The interest-only loan bears a rate of SOFR plus 2.00% in year one and SOFR plus 2.35% thereafter. The loan matures in June 2025 with a one-year extension option subject to debt service coverage ratio, loan-to-value and debt yield requirements. The loan replaces the previous $137,124,000 loan that bore interest at LIBOR plus 1.85% and had an initial maturity of June 2023. In addition, the joint venture entered into the interest rate cap arrangement detailed in the table on the following page.
825 Seventh Avenue
On July 24, 2023, a joint venture, in which we have a 50% interest, completed a $54,000,000 refinancing of the office condominium of 825 Seventh Avenue, a 173,000 square foot Manhattan office and retail building. The interest-only loan bears a rate of SOFR plus 2.75%, with a 30 basis point reduction available upon satisfaction of certain leasing conditions, and matures in January 2026. The loan replaces the previous $60,000,000 loan that bore interest at LIBOR plus 2.35% and was scheduled to mature in July 2023.
Financing Activity - continued
Interest Rate Swap and Cap Arrangements
We entered into the following interest rate swap and cap arrangements during the nine months ended September 30, 2023. See page 34 for further information on our interest rate swap and cap arrangements: | | | | | | | | | | | | | | | | | | | | | | | | | | |
| (Amounts in thousands) | | Notional Amount
(at share) | | All-In Swapped Rate | | Expiration Date | | Variable Rate Spread |
| Interest rate swaps: | | | | | | | | |
| 555 California Street (effective 05/24) | | $ | 840,000 | | | 6.03% | | 05/26 | | S+205 |
Unsecured term loan(1) (effective 10/23) | | 150,000 | | | 5.12% | | 07/25 | | S+129 |
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| | | | Index Strike Rate | | | | |
| Interest rate caps: | | | | | | | | |
1290 Avenue of the Americas (70.0% interest) (effective 11/23)(2) | | $ | 665,000 | | | 1.00% | | 11/25 | | S+162 |
| One Park Avenue (effective 3/24) | | 525,000 | | | 3.89% | | 03/25 | | S+122 |
| 731 Lexington Avenue office condominium (32.4% interest) | | 162,000 | | | 6.00% | | 06/24 | | Prime + 0 |
| 640 Fifth Avenue (52.0% interest) | | 259,925 | | | 4.00% | | 05/24 | | S+111 |
| 512 West 22nd Street (55.0% interest) | | 71,088 | | | 4.50% | | 06/25 | | S+200 |
____________________
(1)In addition to the swap disclosed above, the unsecured term loan, which matures in December 2027, is subject to various interest rate swap arrangements that were entered into in prior periods. The table below summarizes the impact of the swap arrangements on the unsecured term loan.
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| | Swapped Balance | | All-In Swapped Rate | | Unswapped Balance
(bears interest at S+129) |
| Through 10/23 | | $ | 800,000 | | | 4.04% | | $ | — | |
| 10/23 through 07/25 | | 700,000 | | | 4.52% | | 100,000 | |
| 07/25 through 10/26 | | 550,000 | | | 4.35% | | 250,000 | |
| 10/26 through 08/27 | | 50,000 | | | 4.03% | | 750,000 | |
(2)In connection with the arrangement, we made a $63,100 up-front payment, of which $18,930 is attributable to noncontrolling interests.
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| FINANCIAL HIGHLIGHTS (unaudited) | | | | | | | | | |
| (Amounts in thousands, except per share amounts) | | | | |
| | For the Three Months Ended | | For the Nine Months Ended
September 30, |
| | September 30, | | June 30, 2023 | |
| | 2023 | | 2022 | | | 2023 | | 2022 |
| Total revenues | $ | 450,995 | | | $ | 457,431 | | | $ | 472,359 | | | $ | 1,369,277 | | | $ | 1,353,055 | |
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| Net income attributable to common shareholders | $ | 52,846 | | | $ | 7,769 | | | $ | 46,377 | | | $ | 104,391 | | | $ | 84,665 | |
| Per common share: | | | | | | | | | |
| Basic | $ | 0.28 | | | $ | 0.04 | | | $ | 0.24 | | | $ | 0.55 | | | $ | 0.44 | |
| Diluted | $ | 0.28 | | | $ | 0.04 | | | $ | 0.24 | | | $ | 0.54 | | | $ | 0.44 | |
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| Net income attributable to common shareholders, as adjusted (non-GAAP) | $ | 12,845 | | | $ | 37,429 | | | $ | 27,454 | | | $ | 43,246 | | | $ | 106,652 | |
| Per diluted share (non-GAAP) | $ | 0.07 | | | $ | 0.19 | | | $ | 0.14 | | | $ | 0.22 | | | $ | 0.56 | |
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FFO attributable to common shareholders plus assumed conversions, as adjusted (non-GAAP) | $ | 127,241 | | | $ | 157,350 | | | $ | 140,737 | | | $ | 384,371 | | | $ | 469,851 | |
| Per diluted share (non-GAAP) | $ | 0.66 | | | $ | 0.81 | | | $ | 0.72 | | | $ | 1.98 | | | $ | 2.43 | |
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| FFO attributable to common shareholders plus assumed conversions (non-GAAP) | $ | 119,487 | | | $ | 152,461 | | | $ | 144,059 | | | $ | 382,658 | | | $ | 462,463 | |
| FFO - Operating Partnership ("OP") basis (non-GAAP) | $ | 130,094 | | | $ | 163,769 | | | $ | 155,149 | | | $ | 413,501 | | | $ | 496,777 | |
| Per diluted share (non-GAAP) | $ | 0.62 | | | $ | 0.79 | | | $ | 0.74 | | | $ | 1.97 | | | $ | 2.39 | |
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Dividends per common share(1) | $ | — | | | $ | 0.53 | | | $ | — | | | $ | 0.375 | | | $ | 1.59 | |
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FFO payout ratio (based on FFO attributable to common shareholders plus assumed conversions, as adjusted)(1) | — | % | | 65.4 | % | | — | % | | 18.9 | % | | 65.4 | % |
FAD payout ratio(1) | — | % | | 80.3 | % | | — | % | | 25.2 | % | | 79.1 | % |
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| Weighted average common shares outstanding (REIT basis) | 190,364 | | | 191,793 | | | 191,468 | | | 191,228 | | | 191,756 | |
| Convertible units: | | | | | | | | | |
| Class A units | 14,264 | | | 13,617 | | | 13,943 | | | 14,040 | | | 13,515 | |
| Convertible securities | 2,260 | | | 1,790 | | | 3,378 | | | 2,621 | | | 1,407 | |
| Share based payment awards | 1,521 | | | 502 | | | 357 | | | 771 | | | 633 | |
| Weighted average common shares outstanding (OP basis) | 208,409 | | | 207,702 | | | 209,146 | | | 208,660 | | | 207,311 | |
____________________
(1)On April 26, 2023, Vornado announced the postponement of dividends on our common shares until the end of 2023, at which time, upon finalization of our 2023 taxable income, including the impact of asset sales, we will pay the 2023 dividend in either (i) cash, or (ii) a combination of cash and securities, as determined by our Board of Trustees.
Please refer to the Appendix for reconciliations of GAAP to non-GAAP measures.
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| FFO, AS ADJUSTED BRIDGE - Q3 2023 VS. Q3 2022 (unaudited) |
| (Amounts in millions, except per share amounts) |
| | | | | | | | | | | |
| FFO, as Adjusted |
| |
| Amount | | Per Share |
| FFO attributable to common shareholders plus assumed conversions, as adjusted (non-GAAP) for the three months September 30, 2022 | $ | 157.4 | | | $ | 0.81 | |
| | | |
| (Decrease) increase in FFO, as adjusted due to: | | | |
| | | |
| Prior period accrual adjustments recorded in Q3 2022 related to changes in the tax assessed value of THE MART | (11.9) | | | |
| | | |
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| Increase in interest expense, net of increase in interest income | (7.3) | | | |
| Stock compensation expense on the June 2023 grant | (6.1) | | | |
| FFO from sold properties | (4.9) | | | |
| | | |
| Other, net | 0.1 | | | |
| (30.1) | | | |
| Noncontrolling interests' share of above items and impact of assumed conversions of convertible securities | (0.1) | | | |
| Net decrease | (30.2) | | | (0.15) | |
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| FFO attributable to common shareholders plus assumed conversions, as adjusted (non-GAAP) for the three months ended September 30, 2023 | $ | 127.2 | | | $ | 0.66 | |
Please refer to the Appendix for reconciliations of GAAP to non-GAAP measures.
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| CONSOLIDATED BALANCE SHEETS (unaudited) | |
| (Amounts in thousands) | |
| As of | | Increase
(Decrease) | |
| | September 30, 2023 | | December 31, 2022 | | |
| ASSETS | | | | | | |
| Real estate, at cost: | | | | | | |
| Land | $ | 2,457,589 | | | $ | 2,451,828 | | | $ | 5,761 | | |
| Buildings and improvements | 9,887,787 | | | 9,804,204 | | | 83,583 | | |
| Development costs and construction in progress | 1,257,886 | | | 933,334 | | | 324,552 | | |
| Leasehold improvements and equipment | 129,385 | | | 125,389 | | | 3,996 | | |
| Total | 13,732,647 | | | 13,314,755 | | | 417,892 | | |
| Less accumulated depreciation and amortization | (3,698,582) | | | (3,470,991) | | | (227,591) | | |
| Real estate, net | 10,034,065 | | | 9,843,764 | | | 190,301 | | |
| Right-of-use assets | 679,119 | | | 684,380 | | | (5,261) | | |
| Cash, cash equivalents, restricted cash and investments in U.S. Treasury bills: | | | | | | |
| Cash and cash equivalents | 1,000,362 | | | 889,689 | | | 110,673 | | |
| Restricted cash | 262,118 | | | 131,468 | | | 130,650 | | |
| Investments in U.S. Treasury bills | — | | | 471,962 | | | (471,962) | | |
| Total | 1,262,480 | | | 1,493,119 | | | (230,639) | | |
| Tenant and other receivables | 88,438 | | | 81,170 | | | 7,268 | | |
| Investments in partially owned entities | 2,670,782 | | | 2,665,073 | | | 5,709 | | |
| | | | | | |
| 220 CPS condominium units ready for sale | 40,198 | | | 43,599 | | | (3,401) | | |
| Receivable arising from the straight-lining of rents | 697,486 | | | 694,972 | | | 2,514 | | |
| Deferred leasing costs, net | 355,307 | | | 373,555 | | | (18,248) | | |
| Identified intangible assets, net | 130,086 | | | 139,638 | | | (9,552) | | |
| Other assets | 494,582 | | | 474,105 | | | 20,477 | | |
| Total assets | $ | 16,452,543 | | | $ | 16,493,375 | | | $ | (40,832) | | |
| LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND EQUITY | | | | | | |
| Liabilities: | | | | | | |
| Mortgages payable, net | $ | 5,714,761 | | | $ | 5,829,018 | | | $ | (114,257) | | |
| Senior unsecured notes, net | 1,193,362 | | | 1,191,832 | | | 1,530 | | |
| Unsecured term loan, net | 794,212 | | | 793,193 | | | 1,019 | | |
| Unsecured revolving credit facilities | 575,000 | | | 575,000 | | | — | | |
| Lease liabilities | 728,468 | | | 735,969 | | | (7,501) | | |
| Accounts payable and accrued expenses | 452,853 | | | 450,881 | | | 1,972 | | |
| Deferred revenue | 34,083 | | | 39,882 | | | (5,799) | | |
| Deferred compensation plan | 100,485 | | | 96,322 | | | 4,163 | | |
| Other liabilities | 316,094 | | | 268,166 | | | 47,928 | | |
| Total liabilities | 9,909,318 | | | 9,980,263 | | | (70,945) | | |
| Redeemable noncontrolling interests | 474,004 | | | 436,732 | | | 37,272 | | |
| Shareholders' equity | 5,810,777 | | | 5,839,728 | | | (28,951) | | |
| Noncontrolling interests in consolidated subsidiaries | 258,444 | | | 236,652 | | | 21,792 | | |
| Total liabilities, redeemable noncontrolling interests and equity | $ | 16,452,543 | | | $ | 16,493,375 | | | $ | (40,832) | | |
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| CONSOLIDATED NET INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS (unaudited) |
| (Amounts in thousands) |
| | For the Three Months Ended |
| | September 30, | | June 30, 2023 |
| | 2023 | | 2022 | | Variance | |
Property rentals(1) | $ | 341,743 | | | $ | 356,783 | | | $ | (15,040) | | | $ | 365,216 | |
Tenant expense reimbursements(1) | 53,192 | | | 41,821 | | | 11,371 | | | 47,743 | |
| Amortization of acquired below-market leases, net | 1,356 | | | 1,384 | | | (28) | | | 1,360 | |
| Straight-lining of rents | 4,076 | | | 9,156 | | | (5,080) | | | 4,515 | |
| Total rental revenues | 400,367 | | | 409,144 | | | (8,777) | | | 418,834 | |
| Fee and other income: | | | | | | | |
| Building Maintenance Services ("BMS") cleaning fees | 35,428 | | | 35,062 | | | 366 | | | 35,146 | |
| Management and leasing fees | 3,263 | | | 2,532 | | | 731 | | | 3,658 | |
| Other income | 11,937 | | | 10,693 | | | 1,244 | | | 14,721 | |
| Total revenues | 450,995 | | | 457,431 | | | (6,436) | | | 472,359 | |
| Operating expenses | (233,737) | | | (221,596) | | | (12,141) | | | (222,723) | |
| Depreciation and amortization | (110,349) | | | (134,526) | | | 24,177 | | | (107,162) | |
| General and administrative | (35,838) | | | (29,174) | | | (6,664) | | | (39,410) | |
| (Expense) benefit from deferred compensation plan liability | (1,631) | | | 600 | | | (2,231) | | | (2,182) | |
| Transaction related costs and other | (813) | | | (996) | | | 183 | | | (30) | |
| Total expenses | (382,368) | | | (385,692) | | | 3,324 | | | (371,507) | |
| Income from partially owned entities | 18,269 | | | 24,341 | | | (6,072) | | | 37,272 | |
| Income (loss) from real estate fund investments | 1,783 | | | (111) | | | 1,894 | | | (102) | |
| Interest and other investment income, net | 12,934 | | | 5,228 | | | 7,706 | | | 13,255 | |
| Income (loss) from deferred compensation plan assets | 1,631 | | | (600) | | | 2,231 | | | 2,182 | |
| Interest and debt expense | (88,126) | | | (76,774) | | | (11,352) | | | (87,165) | |
| Net gains on disposition of wholly owned and partially owned assets | 56,136 | | | — | | | 56,136 | | | 936 | |
| Income before income taxes | 71,254 | | | 23,823 | | | 47,431 | | | 67,230 | |
| Income tax expense | (11,684) | | | (3,711) | | | (7,973) | | | (4,497) | |
| Net income | 59,570 | | | 20,112 | | | 39,458 | | | 62,733 | |
| Less net loss (income) attributable to noncontrolling interests in: | | | | | | | |
| Consolidated subsidiaries | 13,541 | | | 3,792 | | | 9,749 | | | 2,781 | |
| Operating Partnership | (4,736) | | | (606) | | | (4,130) | | | (3,608) | |
| Net income attributable to Vornado | 68,375 | | | 23,298 | | | 45,077 | | | 61,906 | |
| Preferred share dividends | (15,529) | | | (15,529) | | | — | | | (15,529) | |
| | | | | | | |
| Net income attributable to common shareholders | $ | 52,846 | | | $ | 7,769 | | | $ | 45,077 | | | $ | 46,377 | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| Capitalized expenditures: | | | | | | | |
| Development payroll | $ | 3,115 | | | $ | 3,269 | | | $ | (154) | | | $ | 2,704 | |
| Interest and debt expense | 11,205 | | | 4,874 | | | 6,331 | | | 9,949 | |
________________________________
(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.
| | | | | | | | | | | | | | | | | |
| CONSOLIDATED NET INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS (unaudited) |
| (Amounts in thousands) |
| | For the Nine Months Ended September 30, |
| | 2023 | | 2022 | | Variance |
Property rentals(1) | $ | 1,050,111 | | | $ | 1,033,749 | | | $ | 16,362 | |
Tenant expense reimbursements(1) | 157,030 | | | 128,249 | | | 28,781 | |
| Amortization of acquired below-market leases, net | 4,083 | | | 3,788 | | | 295 | |
| Straight-lining of rents | 4,770 | | | 45,835 | | | (41,065) | |
| Total rental revenues | 1,215,994 | | | 1,211,621 | | | 4,373 | |
| Fee and other income: | | | | | |
| BMS cleaning fees | 105,902 | | | 101,752 | | | 4,150 | |
| Management and leasing fees | 9,970 | | | 8,167 | | | 1,803 | |
| Other income | 37,411 | | | 31,515 | | | 5,896 | |
| Total revenues | 1,369,277 | | | 1,353,055 | | | 16,222 | |
| Operating expenses | (685,233) | | | (660,434) | | | (24,799) | |
| Depreciation and amortization | (324,076) | | | (370,631) | | | 46,555 | |
| General and administrative | (116,843) | | | (102,292) | | | (14,551) | |
| (Expense) benefit from deferred compensation plan liability | (7,541) | | | 10,138 | | | (17,679) | |
| Transaction related costs and other | (1,501) | | | (4,961) | | | 3,460 | |
| Total expenses | (1,135,194) | | | (1,128,180) | | | (7,014) | |
| Income from partially owned entities | 72,207 | | | 83,775 | | | (11,568) | |
| Income from real estate fund investments | 1,662 | | | 5,421 | | | (3,759) | |
| Interest and other investment income, net | 35,792 | | | 9,282 | | | 26,510 | |
| Income (loss) from deferred compensation plan assets | 7,541 | | | (10,138) | | | 17,679 | |
| Interest and debt expense | (261,528) | | | (191,523) | | | (70,005) | |
| Net gains on disposition of wholly owned and partially owned assets | 64,592 | | | 35,384 | | | 29,208 | |
| Income before income taxes | 154,349 | | | 157,076 | | | (2,727) | |
| Income tax expense | (20,848) | | | (14,686) | | | (6,162) | |
| Net income | 133,501 | | | 142,390 | | | (8,889) | |
| Less net loss (income) attributable to noncontrolling interests in: | | | | | |
| Consolidated subsidiaries | 26,250 | | | (4,756) | | | 31,006 | |
| Operating Partnership | (8,773) | | | (6,382) | | | (2,391) | |
| Net income attributable to Vornado | 150,978 | | | 131,252 | | | 19,726 | |
| Preferred share dividends | (46,587) | | | (46,587) | | | — | |
| | | | | |
| Net income attributable to common shareholders | $ | 104,391 | | | $ | 84,665 | | | $ | 19,726 | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
| Capitalized expenditures: | | | | | |
| Development payroll | $ | 8,668 | | | $ | 8,378 | | | $ | 290 | |
| Interest and debt expense | 30,011 | | | 12,095 | | | 17,916 | |
________________________________
(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.
| | |
| NET INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS BY SEGMENT (unaudited) |
| (Amounts in thousands) |
| | | | | | | | | | | | | | | | | |
| | For the Three Months Ended September 30, 2023 |
| | Total | | New York | | Other |
Property rentals(1) | $ | 341,743 | | | $ | 272,978 | | | $ | 68,765 | |
Tenant expense reimbursements(1) | 53,192 | | | 39,832 | | | 13,360 | |
| Amortization of acquired below-market leases, net | 1,356 | | | 1,188 | | | 168 | |
| Straight-lining of rents | 4,076 | | | 5,458 | | | (1,382) | |
| Total rental revenues | 400,367 | | | 319,456 | | | 80,911 | |
| Fee and other income: | | | | | |
| BMS cleaning fees | 35,428 | | | 37,999 | | | (2,571) | |
| Management and leasing fees | 3,263 | | | 3,441 | | | (178) | |
| Other income | 11,937 | | | 3,872 | | | 8,065 | |
| Total revenues | 450,995 | | | 364,768 | | | 86,227 | |
| Operating expenses | (233,737) | | | (186,147) | | | (47,590) | |
| Depreciation and amortization | (110,349) | | | (87,778) | | | (22,571) | |
| General and administrative | (35,838) | | | (12,357) | | | (23,481) | |
| Expense from deferred compensation plan liability | (1,631) | | | — | | | (1,631) | |
| Transaction related costs and other | (813) | | | (625) | | | (188) | |
| Total expenses | (382,368) | | | (286,907) | | | (95,461) | |
| Income from partially owned entities | 18,269 | | | 16,902 | | | 1,367 | |
| Income from real estate fund investments | 1,783 | | | — | | | 1,783 | |
| Interest and other investment income, net | 12,934 | | | 4,712 | | | 8,222 | |
| Income from deferred compensation plan assets | 1,631 | | | — | | | 1,631 | |
| Interest and debt expense | (88,126) | | | (37,133) | | | (50,993) | |
| Net gains on disposition of wholly owned and partially owned assets | 56,136 | | | — | | | 56,136 | |
| Income before income taxes | 71,254 | | | 62,342 | | | 8,912 | |
| Income tax expense | (11,684) | | | (1,626) | | | (10,058) | |
| Net income (loss) | 59,570 | | | 60,716 | | | (1,146) | |
| Less net loss attributable to noncontrolling interests in consolidated subsidiaries | 13,541 | | | 11,388 | | | 2,153 | |
| Net income attributable to Vornado Realty L.P. | 73,111 | | | $ | 72,104 | | | $ | 1,007 | |
| Less net income attributable to noncontrolling interests in the Operating Partnership | (4,707) | | | | | |
| Preferred unit distributions | (15,558) | | | | | |
| | | | | |
| Net income attributable to common shareholders | $ | 52,846 | | | | | |
| For the three months ended September 30, 2022 | | | | | |
| Net income (loss) attributable to Vornado Realty L.P. | $ | 23,904 | | | $ | 41,926 | | | $ | (18,022) | |
| Net income attributable to common shareholders | $ | 7,769 | | | | | |
________________________________
(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.
| | |
| NET INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS BY SEGMENT (unaudited) |
| (Amounts in thousands) |
| | | | | | | | | | | | | | | | | |
| | For the Nine Months Ended September 30, 2023 |
| | Total | | New York | | Other |
Property rentals(1) | $ | 1,050,111 | | | $ | 822,853 | | | $ | 227,258 | |
Tenant expense reimbursements(1) | 157,030 | | | 122,497 | | | 34,533 | |
| Amortization of acquired below-market leases, net | 4,083 | | | 3,577 | | | 506 | |
| Straight-lining of rents | 4,770 | | | 6,747 | | | (1,977) | |
| Total rental revenues | 1,215,994 | | | 955,674 | | | 260,320 | |
| Fee and other income: | | | | | |
| BMS cleaning fees | 105,902 | | | 113,431 | | | (7,529) | |
| Management and leasing fees | 9,970 | | | 10,375 | | | (405) | |
| Other income | 37,411 | | | 11,573 | | | 25,838 | |
| Total revenues | 1,369,277 | | | 1,091,053 | | | 278,224 | |
| Operating expenses | (685,233) | | | (550,878) | | | (134,355) | |
| Depreciation and amortization | (324,076) | | | (256,426) | | | (67,650) | |
| General and administrative | (116,843) | | | (36,947) | | | (79,896) | |
| Expense from deferred compensation plan liability | (7,541) | | | — | | | (7,541) | |
| Transaction related costs and other | (1,501) | | | (636) | | | (865) | |
| Total expenses | (1,135,194) | | | (844,887) | | | (290,307) | |
| Income from partially owned entities | 72,207 | | | 67,355 | | | 4,852 | |
| Income from real estate fund investments | 1,662 | | | — | | | 1,662 | |
| Interest and other investment income, net | 35,792 | | | 11,708 | | | 24,084 | |
| Income from deferred compensation plan assets | 7,541 | | | — | | | 7,541 | |
| Interest and debt expense | (261,528) | | | (116,684) | | | (144,844) | |
| Net gains on disposition of wholly owned and partially owned assets | 64,592 | | | — | | | 64,592 | |
| Income (loss) before income taxes | 154,349 | | | 208,545 | | | (54,196) | |
| Income tax expense | (20,848) | | | (3,714) | | | (17,134) | |
| Net income (loss) | 133,501 | | | 204,831 | | | (71,330) | |
| Less net loss (income) attributable to noncontrolling interests in consolidated subsidiaries | 26,250 | | | 26,993 | | | (743) | |
| Net income (loss) attributable to Vornado Realty L.P. | 159,751 | | | $ | 231,824 | | | $ | (72,073) | |
| Less net income attributable to noncontrolling interests in the Operating Partnership | (8,687) | | | | | |
| Preferred unit distributions | (46,673) | | | | | |
| | | | | |
| Net income attributable to common shareholders | $ | 104,391 | | | | | |
| For the nine months ended September 30, 2022 | | | | | |
| Net income (loss) attributable to Vornado Realty L.P. | $ | 137,634 | | | $ | 220,195 | | | $ | (82,561) | |
| Net income attributable to common shareholders | $ | 84,665 | | | | | |
| | | | | |
________________________________
(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.
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| NET OPERATING INCOME AT SHARE AND NET OPERATING INCOME AT SHARE - CASH BASIS BY SEGMENT (NON-GAAP) (unaudited) |
| (Amounts in thousands) | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| For the Three Months Ended September 30, 2023 |
| Total | | New York | | Other |
| Total revenues | $ | 450,995 | | | $ | 364,768 | | | $ | 86,227 | |
| Operating expenses | (233,737) | | | (186,147) | | | (47,590) | |
| NOI - consolidated | 217,258 | | | 178,621 | | | 38,637 | |
| Deduct: NOI attributable to noncontrolling interests in consolidated subsidiaries | (8,363) | | | (2,197) | | | (6,166) | |
| Add: Our share of NOI from partially owned entities | 72,100 | | | 69,210 | | | 2,890 | |
| NOI at share | 280,995 | | | 245,634 | | | 35,361 | |
| Non-cash adjustments for straight-line rents, amortization of acquired below-market leases, net, and other | (2,980) | | | (4,790) | | | 1,810 | |
| NOI at share - cash basis | $ | 278,015 | | | $ | 240,844 | | | $ | 37,171 | |
| | | | | | | | | | | | | | | | | |
| For the Three Months Ended September 30, 2022 |
| Total | | New York | | Other |
| Total revenues | $ | 457,431 | | | $ | 360,033 | | | $ | 97,398 | |
| Operating expenses | (221,596) | | | (182,131) | | | (39,465) | |
| NOI - consolidated | 235,835 | | | 177,902 | | | 57,933 | |
| Deduct: NOI attributable to noncontrolling interests in consolidated subsidiaries | (14,766) | | | (8,691) | | | (6,075) | |
| Add: Our share of NOI from partially owned entities | 76,020 | | | 71,943 | | | 4,077 | |
| NOI at share | 297,089 | | | 241,154 | | | 55,935 | |
| Non-cash adjustments for straight-line rents, amortization of acquired below-market leases, net, and other | (1,419) | | | (3,462) | | | 2,043 | |
| NOI at share - cash basis | $ | 295,670 | | | $ | 237,692 | | | $ | 57,978 | |
| | | | | | | | | | | | | | | | | |
| For the Three Months Ended June 30, 2023 |
| Total | | New York | | Other |
| Total revenues | $ | 472,359 | | | $ | 362,471 | | | $ | 109,888 | |
| Operating expenses | (222,723) | | | (176,410) | | | (46,313) | |
| NOI - consolidated | 249,636 | | | 186,061 | | | 63,575 | |
| Deduct: NOI attributable to noncontrolling interests in consolidated subsidiaries | (18,742) | | | (5,204) | | | (13,538) | |
| Add: Our share of NOI from partially owned entities | 70,745 | | | 67,509 | | | 3,236 | |
| NOI at share | 301,639 | | | 248,366 | | | 53,273 | |
| Non-cash adjustments for straight-line rents, amortization of acquired below-market leases, net, and other | (5,570) | | | (6,797) | | | 1,227 | |
| NOI at share - cash basis | $ | 296,069 | | | $ | 241,569 | | | $ | 54,500 | |
________________________________
See Appendix page vii for details of NOI at share components.
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| NET OPERATING INCOME AT SHARE AND NET OPERATING INCOME AT SHARE - CASH BASIS BY SEGMENT (NON-GAAP) (unaudited) |
| (Amounts in thousands) | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| For the Nine Months Ended September 30, 2023 |
| Total | | New York | | Other |
| Total revenues | $ | 1,369,277 | | | $ | 1,091,053 | | | $ | 278,224 | |
| Operating expenses | (685,233) | | | (550,878) | | | (134,355) | |
| NOI - consolidated | 684,044 | | | 540,175 | | | 143,869 | |
| Deduct: NOI attributable to noncontrolling interests in consolidated subsidiaries | (38,869) | | | (12,224) | | | (26,645) | |
| Add: Our share of NOI from partially owned entities | 210,942 | | | 202,043 | | | 8,899 | |
| NOI at share | 856,117 | | | 729,994 | | | 126,123 | |
| Non-cash adjustments for straight-line rents, amortization of acquired below-market leases, net and other | (3,498) | | | (6,554) | | | 3,056 | |
| NOI at share - cash basis | $ | 852,619 | | | $ | 723,440 | | | $ | 129,179 | |
| | | | | | | | | | | | | | | | | |
| For the Nine Months Ended September 30, 2022 |
| Total | | New York | | Other |
| Total revenues | $ | 1,353,055 | | | $ | 1,082,743 | | | $ | 270,312 | |
| Operating expenses | (660,434) | | | (536,238) | | | (124,196) | |
| NOI - consolidated | 692,621 | | | 546,505 | | | 146,116 | |
| Deduct: NOI attributable to noncontrolling interests in consolidated subsidiaries | (51,100) | | | (32,708) | | | (18,392) | |
| Add: Our share of NOI from partially owned entities | 228,772 | | | 219,116 | | | 9,656 | |
| NOI at share | 870,293 | | | 732,913 | | | 137,380 | |
| Non-cash adjustments for straight-line rents, amortization of acquired below-market leases, net and other | (8,824) | | | (13,626) | | | 4,802 | |
| NOI at share - cash basis | $ | 861,469 | | | $ | 719,287 | | | $ | 142,182 | |
________________________________
See Appendix page vii for details of NOI at share components.
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| NET OPERATING INCOME AT SHARE AND NET OPERATING INCOME AT SHARE - CASH BASIS BY SEGMENT AND SUBSEGMENT (NON-GAAP) (unaudited) |
| (Amounts in thousands) | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| For the Three Months Ended | | For the Nine Months Ended
September 30, |
| September 30, | | June 30, 2023 | |
| 2023 | | 2022 | | | 2023 | | 2022 |
| NOI at share: | | | | | | | | | |
| New York: | | | | | | | | | |
Office(1) | $ | 183,919 | | | $ | 174,790 | | | $ | 186,042 | | | $ | 544,231 | | | $ | 534,641 | |
| Retail | 46,559 | | | 52,127 | | | 47,428 | | | 141,183 | | | 155,670 | |
| Residential | 5,570 | | | 4,598 | | | 5,467 | | | 16,495 | | | 14,622 | |
| Alexander’s | 9,586 | | | 9,639 | | | 9,429 | | | 28,085 | | | 27,980 | |
| | | | | | | | | |
| Total New York | 245,634 | | | 241,154 | | | 248,366 | | | 729,994 | | | 732,913 | |
| Other: | | | | | | | | | |
THE MART(2) | 15,132 | | | 35,769 | | | 16,462 | | | 47,003 | | | 75,630 | |
555 California Street(3) | 16,564 | | | 16,092 | | | 31,347 | | | 64,840 | | | 49,051 | |
| Other investments | 3,665 | | | 4,074 | | | 5,464 | | | 14,280 | | | 12,699 | |
| Total Other | 35,361 | | | 55,935 | | | 53,273 | | | 126,123 | | | 137,380 | |
| NOI at share | $ | 280,995 | | | $ | 297,089 | | | $ | 301,639 | | | $ | 856,117 | | | $ | 870,293 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | |
| | | | |
| | | | | | | | |
| NOI at share - cash basis: | | | | | | | | | |
| New York: | | | | | | | | | |
Office(1) | $ | 179,838 | | | $ | 174,606 | | | $ | 181,253 | | | $ | 543,172 | | | $ | 532,759 | |
| Retail | 45,451 | | | 48,096 | | | 44,956 | | | 134,441 | | | 142,678 | |
| Residential | 5,271 | | | 4,556 | | | 5,129 | | | 15,451 | | | 13,554 | |
| Alexander's | 10,284 | | | 10,434 | | | 10,231 | | | 30,376 | | | 30,296 | |
| | | | | | | | | |
| Total New York | 240,844 | | | 237,692 | | | 241,569 | | | 723,440 | | | 719,287 | |
| Other: | | | | | | | | | |
THE MART(2) | 15,801 | | | 36,772 | | | 16,592 | | | 47,068 | | | 78,749 | |
555 California Street(3) | 17,552 | | | 16,926 | | | 32,284 | | | 67,554 | | | 50,141 | |
| Other investments | 3,818 | | | 4,280 | | | 5,624 | | | 14,557 | | | 13,292 | |
| Total Other | 37,171 | | | 57,978 | | | 54,500 | | | 129,179 | | | 142,182 | |
| NOI at share - cash basis | $ | 278,015 | | | $ | 295,670 | | | $ | 296,069 | | | $ | 852,619 | | | $ | 861,469 | |
________________________________
(1)Includes BMS NOI of $7,752, $7,043, $6,797, $20,838 and $19,293, respectively, for the three months ended September 30, 2023 and 2022 and June 30, 2023 and the nine months ended September 30, 2023 and 2022.
(2)The third quarter of 2022 includes prior period accrual adjustments related to changes in the tax-assessed value of THE MART.
(3)The second quarter of 2023 includes our $14,103 share of the receipt of a tenant settlement, net of legal expenses.
| | | | | | | | | | | | | | | | | | | | |
| SAME STORE NOI AT SHARE AND SAME STORE NOI AT SHARE - CASH BASIS (NON-GAAP) (unaudited) |
| | | | | | | | | | | | | | | | | | | | | | | |
| Total | | New York | | THE MART(1) | | 555 California Street(2) |
Same store NOI at share % (decrease) increase(3): | | | | | | | |
| Three months ended September 30, 2023 compared to September 30, 2022 | (3.0) | % | | 4.0 | % | | (54.0) | % | | 2.9 | % |
| Nine months ended September 30, 2023 compared to September 30, 2022 | 1.1 | % | | 2.8 | % | | (35.5) | % | | 32.2 | % |
| Three months ended September 30, 2023 compared to June 30, 2023 | (6.6) | % | | (1.3) | % | | (8.5) | % | | (47.2) | % |
| | | | | | | |
Same store NOI at share - cash basis % (decrease) increase(3): | | | | | | | |
| Three months ended September 30, 2023 compared to September 30, 2022 | (4.7) | % | | 2.1 | % | | (53.7) | % | | 3.7 | % |
| Nine months ended September 30, 2023 compared to September 30, 2022 | 1.1 | % | | 3.1 | % | | (38.2) | % | | 34.7 | % |
| Three months ended September 30, 2023 compared to June 30, 2023 | (7.0) | % | | (1.8) | % | | (6.2) | % | | (45.6) | % |
| | | | | | | |
| | | | | | | |
________________________________
(1)The third quarter of 2022 includes prior period accrual adjustments related to changes in the tax-assessed value of THE MART.
(2)The second quarter of 2023 includes our $14,103,000 share of the receipt of a tenant settlement, net of legal expenses.
(3)See pages viii through xiii in the Appendix for same store NOI at share and same store NOI at share - cash basis reconciliations.
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| DEVELOPMENT/REDEVELOPMENT - ACTIVE PROJECTS AND FUTURE OPPORTUNITIES | |
| (Amounts in thousands, except square feet) | | | | |
| | | | (at Vornado’s share) | | | | Projected Incremental
Cash Yield |
Active Development Projects: New York segment: | | Property
Rentable
Sq. Ft. | | Budget | | Cash Amount
Expended | | Remaining Expenditures | | Stabilization Year | |
| PENN District: | | | | | | | | | | | | | | |
| PENN 2 - as expanded | | 1,795,000 | | | $ | 750,000 | | | $ | 582,671 | | | $ | 167,329 | | | 2025 | | | 9.5% | |
PENN 1 (including LIRR Concourse Retail)(1) | | 2,558,000 | | | 450,000 | | | 415,663 | |
| 34,337 | | | N/A | | | 13.2% | (1)(2) |
| Districtwide Improvements | | N/A | | 100,000 | | | 45,490 | | | 54,510 | | | N/A | | | N/A | |
| Total PENN District | | | | 1,300,000 | | (3) | 1,043,824 | | | 256,176 | | | | | | 10.1% | |
| | | | | | | | | | | | | | |
| Sunset Pier 94 Studios (49.9% interest) | | 266,000 | | | 125,000 | | (4) | 7,994 | | | 117,006 | | | 2026 | | | 10.3% | |
| | | | | | | | | | | | | | |
| Total Active Development Projects | | | | $ | 1,425,000 | | | $ | 1,051,818 | | | $ | 373,182 | | | | | | | |
| | | | | | | | | | | | | | |
Future Opportunities: New York segment: | | Property Zoning
Sq. Ft. | | | | | | | | | | | | |
| PENN District: | | | | | | | | | | | | | | |
Hotel Pennsylvania land(5) | | 2,052,000 | | | | | | | | | | | | | |
| Eighth Avenue and 34th Street land | | 105,000 | | | | | | | | | | | | | |
| Multiple other opportunities - office/residential/retail | | | | | | | | | | | | | | |
| Total PENN District | | 2,157,000 | | | | | | | | | | | | | |
350 Park Avenue assemblage (see page 4 for details) | | 1,389,000 | | | | | | | | | | | | | |
260 Eleventh Avenue - office(6) | | 280,000 | | | | | | | | | | | | | |
| 57th Street land (50% interest) | | 150,000 | | | | | | | | | | | | | |
| Other segment: | | | | | | | | | | | | | | |
| 527 West Kinzie land, Chicago | | 330,000 | | | | | | | | | | | | | |
| Total Future Opportunities | | 4,306,000 | | | | | | | | | | | | | |
________________________________
(1)Property is ground leased through 2098, as fully extended. Fair market value resets occur in 2023, 2048 and 2073. The 13.2% projected return is before the ground rent reset in June 2023, which has yet to be determined and may be material.
(2)Projected to be achieved as pre-redevelopment leases roll, which have an approximate average remaining term of 3.5 years.
(3)Excluding debt and equity carry.
(4)Represents our 49.9% share of the $350,000 development budget and excludes the $40,000 value of our contributed leasehold interest. $34,000 will be funded via cash contributions. See page 3 for further details. (5)Demolition of the existing building was completed in the third quarter of 2023.
(6)The building is subject to a ground lease which expires in 2114.
There can be no assurance that the above projects will be completed, completed on schedule or within budget. In addition, there can be no assurance that the Company will be successful in leasing the properties on the expected schedule or at the assumed rental rates.
| | |
| LEASING ACTIVITY (unaudited) |
| (Square feet in thousands) |
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 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.
| | | | | | | | | | | | | | | | | | | | | | |
| | New York | | | | |
| | Office | | Retail | | THE MART | |
| Three Months Ended September 30, 2023 | | | | | | | | |
| Total square feet leased | | 236 | | | 29 | | | 68 | | | |
| Our share of square feet leased: | | 190 | | | 21 | | | 63 | | | |
Initial rent(1) | | $ | 93.33 | | | $ | 373.28 | | | $ | 54.71 | | | |
| Weighted average lease term (years) | | 7.9 | | | 8.4 | | | 5.2 | | | |
| Second generation relet space: | | | | | | | | |
| Square feet | | 176 | | | 9 | | | 40 | | | |
| GAAP basis: | | | | | | | | |
Straight-line rent(2) | | $ | 89.71 | | | $ | 440.92 | | | $ | 53.56 | | | |
| Prior straight-line rent | | $ | 89.94 | | | $ | 335.92 | | | $ | 58.83 | | | |
| Percentage (decrease) increase | | (0.3) | % | | 31.3 | % | | (9.0) | % | | |
| Cash basis (non-GAAP): | | | | | | | | |
Initial rent(1) | | $ | 94.14 | | | $ | 423.78 | | | $ | 55.79 | | | |
| Prior escalated rent | | $ | 96.57 | | | $ | 317.45 | | | $ | 62.28 | | | |
| Percentage (decrease) increase | | (2.5) | % | | 33.5 | % | | (10.4) | % | | |
| Tenant improvements and leasing commissions: | | | | | | | | |
| Per square foot | | $ | 101.69 | | | $ | 218.55 | | | $ | 54.39 | | | |
| Per square foot per annum | | $ | 12.87 | | | $ | 26.02 | | | $ | 10.46 | | | |
| Percentage of initial rent | | 13.8 | % | | 7.0 | % | | 19.1 | % | | |
________________________________
(1)Represents the cash basis weighted average starting rent per square foot, which is generally indicative of market rents. Most leases include free rent and periodic step-ups in rent which are not included in the initial cash basis rent per square foot but are included in the GAAP basis straight-line rent per square foot.
(2)Represents the GAAP basis weighted average rent per square foot that is recognized over the term of the respective leases and includes the effect of free rent and periodic step-ups in rent.
| | |
| LEASING ACTIVITY (unaudited) |
| (Square feet in thousands) |
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 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.
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | New York | | | | 555 California Street |
| | | Office | | Retail | | THE MART | |
| Nine Months Ended September 30, 2023 | | | | | | | | |
| Total square feet leased | | 1,292 | | | 259 | | | 176 | | | 10 | |
| Our share of square feet leased: | | 1,186 | | | 200 | | | 171 | | | 7 | |
Initial rent(1) | | $ | 97.99 | | | $ | 116.03 | | | $ | 55.87 | | | $ | 134.70 | |
| Weighted average lease term (years) | | 9.5 | | | 5.6 | | | 5.7 | | | 5.9 | |
| Second generation relet space: | | | | | | | | |
| Square feet | | 1,027 | | | 113 | | | 112 | | | 4 | |
| GAAP basis: | | | | | | | | |
Straight-line rent(2) | | $ | 100.55 | | | $ | 107.52 | | | $ | 55.80 | | | $ | 124.51 | |
| Prior straight-line rent | | $ | 93.75 | | | $ | 91.89 | | | $ | 59.33 | | | $ | 110.40 | |
| Percentage increase (decrease) | | 7.3 | % | | 17.0 | % | | (5.9) | % | | 12.8 | % |
| Cash basis (non-GAAP): | | | | | | | | |
Initial rent(1) | | $ | 100.64 | | | $ | 105.13 | | | $ | 57.84 | | | $ | 120.56 | |
| Prior escalated rent | | $ | 99.08 | | | $ | 91.07 | | | $ | 64.11 | | | $ | 117.75 | |
| Percentage increase (decrease) | | 1.6 | % | | 15.4 | % | | (9.8) | % | | 2.4 | % |
| Tenant improvements and leasing commissions: | | | | | | | | |
| Per square foot | | $ | 53.78 | | | $ | 106.44 | | | $ | 48.40 | | | $ | 135.20 | |
| Per square foot per annum | | $ | 5.66 | | | $ | 19.01 | | | $ | 8.49 | | | $ | 22.92 | |
| Percentage of initial rent | | 5.8 | % | | 16.4 | % | | 15.2 | % | | 17.0 | % |
________________________________
(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.
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
LEASE EXPIRATIONS (unaudited)
NEW YORK SEGMENT |
|
| | Period of Lease
Expiration | | Our Share of Square Feet of Expiring Leases(1) | | Annualized Escalated Rents
of Expiring Leases | | Percentage of
Annualized
Escalated Rent |
| | | | Total | | Per Sq. Ft. | |
| Office: | Third Quarter 2023(2) | | 74,000 | | | $ | 6,947,000 | | | $ | 93.88 | | | 0.6 | % |
| | | | | | | | | |
| | | | | | | | | |
| | Fourth Quarter 2023 | | 528,000 | | | 52,640,000 | | | 99.70 | | | 4.3 | % |
| | | | | | | | | | |
| First Quarter 2024 | | 149,000 | | | 15,056,000 | | | 101.05 | | | 1.2 | % |
| Second Quarter 2024 | | 379,000 | | | 35,806,000 | | | 94.47 | | | 2.9 | % |
| Third Quarter 2024 | | 73,000 | | | 5,768,000 | | | 79.01 | | | 0.5 | % |
| Fourth Quarter 2024 | | 179,000 | | | 17,032,000 | | | 95.15 | | | 1.4 | % |
| | Total 2024 | | 780,000 | | | 73,662,000 | | | 94.44 | | | 6.0 | % |
| | 2025 | | 725,000 | | | 60,857,000 | | | 83.94 | | | 5.0 | % |
| | 2026 | | 1,227,000 | | | 102,387,000 | | | 83.44 | | | 8.4 | % |
| | 2027 | | 1,181,000 | | | 93,738,000 | | | 79.37 | | | 7.7 | % |
| 2028 | | 1,048,000 | | | 82,938,000 | | | 79.14 | | | 6.8 | % |
| 2029 | | 1,210,000 | | | 97,763,000 | | | 80.80 | | | 8.0 | % |
| 2030 | | 639,000 | | | 54,198,000 | | | 84.82 | | | 4.5 | % |
| 2031 | | 891,000 | | | 79,416,000 | | | 89.13 | | | 6.5 | % |
| 2032 | | 958,000 | | | 94,278,000 | | | 98.41 | | | 7.8 | % |
| 2033 | | 509,000 | | | 43,642,000 | | | 85.74 | | | 3.7 | % |
| Thereafter | | 4,702,000 | | (3) | 373,652,000 | | | 79.47 | | | 30.7 | % |
| | | | | | | | | |
| Retail: | Third Quarter 2023(2) | | 19,000 | | | $ | 1,460,000 | | | $ | 76.84 | | | 0.6 | % |
| | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
| Fourth Quarter 2023 | | 3,000 | | | 225,000 | | | 75.00 | | | 0.1 | % |
| | | | | | | | | |
| | First Quarter 2024 | | 100,000 | | | 3,230,000 | | | 32.30 | | | 1.3 | % |
| Second Quarter 2024 | | 82,000 | | | 14,743,000 | | | 179.79 | | | 5.8 | % |
| Third Quarter 2024 | | 1,000 | | | 2,952,000 | | | 2,952.00 | | | 1.2 | % |
| Fourth Quarter 2024 | | 23,000 | | | 1,375,000 | | | 59.78 | | | 0.5 | % |
| Total 2024 | | 206,000 | | | 22,300,000 | | | 108.25 | | | 8.8 | % |
| 2025 | | 42,000 | | | 13,588,000 | | | 323.52 | | | 5.4 | % |
| 2026 | | 82,000 | | | 26,351,000 | | | 321.35 | | | 10.4 | % |
| | 2027 | | 37,000 | | | 21,459,000 | | | 579.97 | | | 8.5 | % |
| | 2028 | | 26,000 | | | 13,875,000 | | | 533.65 | | | 5.5 | % |
| 2029 | | 45,000 | | | 26,816,000 | | | 595.91 | | | 10.6 | % |
| | 2030 | | 156,000 | | | 23,918,000 | | | 153.32 | | | 9.4 | % |
| | 2031 | | 67,000 | | | 28,628,000 | | | 427.28 | | | 11.3 | % |
| | 2032 | | 57,000 | | | 29,381,000 | | | 515.46 | | | 11.6 | % |
| | 2033 | | 20,000 | | | 6,530,000 | | | 326.50 | | | 2.6 | % |
| Thereafter | | 350,000 | | | 38,694,000 | | | 110.55 | | | 15.2 | % |
________________________________
(1) Excludes storage, vacancy and other.
(2) Includes month-to-month leases, holdover tenants, and leases expiring on the last day of the current quarter.
(3) Assumes U.S. Post Office exercises all lease renewal options through 2038 for 492,000 square feet at 909 Third Avenue given the below-market rent on their options.
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
LEASE EXPIRATIONS (unaudited)
THE MART |
|
| | Period of Lease
Expiration | | Our Share of Square Feet of Expiring Leases(1) | | Annualized Escalated Rents
of Expiring Leases | | Percentage of
Annualized
Escalated Rent |
| | | | Total | | Per Sq. Ft. | |
| Office / Showroom / Retail: | Third Quarter 2023(2) | | — | | | $ | — | | | $ | — | | | 0.0 | % |
| | | | | | | | | |
| | | | | | | | | |
| Fourth Quarter 2023 | | 47,000 | | | 2,742,000 | | | 58.34 | | | 1.9 | % |
| | | | | | | | | |
| | | | | | | | | |
| | First Quarter 2024 | | 94,000 | | | 5,489,000 | | | 58.39 | | | 3.9 | % |
| Second Quarter 2024 | | 48,000 | | | 2,835,000 | | | 59.06 | | | 2.0 | % |
| Third Quarter 2024 | | 25,000 | | | 1,779,000 | | | 71.16 | | | 1.3 | % |
| Fourth Quarter 2024 | | 66,000 | | | 3,529,000 | | | 53.47 | | | 2.5 | % |
| Total 2024 | | 233,000 | | | 13,632,000 | | | 58.51 | | | 9.7 | % |
| | 2025 | | 208,000 | | | 11,356,000 | | | 56.22 | | | 8.0 | % |
| | 2026 | | 298,000 | | | 17,036,000 | | | 57.17 | | | 12.0 | % |
| 2027 | | 189,000 | | | 10,166,000 | | | 53.79 | | | 7.2 | % |
| 2028 | | 695,000 | | | 34,099,000 | | | 49.06 | | | 23.8 | % |
| | 2029 | | 114,000 | | | 6,054,000 | | | 53.11 | | | 4.3 | % |
| 2030 | | 47,000 | | | 2,961,000 | | | 63.00 | | | 2.1 | % |
| 2031 | | 296,000 | | | 14,026,000 | | | 47.39 | | | 9.9 | % |
| 2032 | | 390,000 | | | 18,339,000 | | | 47.02 | | | 12.9 | % |
| 2033 | | 54,000 | | | 2,627,000 | | | 48.65 | | | 1.8 | % |
| Thereafter | | 196,000 | | | 9,023,000 | | | 46.04 | | | 6.4 | % |
________________________________
(1) Excludes storage, vacancy and other.
(2) Includes month-to-month leases, holdover tenants, and leases expiring on the last day of the current quarter.
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
LEASE EXPIRATIONS (unaudited)
555 California Street |
|
| | Period of Lease
Expiration | | Our Share of Square Feet of Expiring Leases(1) | | Annualized Escalated Rents
of Expiring Leases | | Percentage of
Annualized
Escalated Rent |
| | | | Total | | Per Sq. Ft. | |
| Office / Retail: | Third Quarter 2023(2) | | — | | | $ | — | | | $ | — | | | 0.0 | % |
| | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
| | Fourth Quarter 2023 | | — | | | — | | | — | | | 0.0 | % |
| | | | | | | | | |
| First Quarter 2024 | | — | | | — | | | — | | | 0.0 | % |
| Second Quarter 2024 | | — | | | — | | | — | | | 0.0 | % |
| Third Quarter 2024 | | — | | | — | | | — | | | 0.0 | % |
| Fourth Quarter 2024 | | 65,000 | | | 6,835,000 | | | 105.15 | | | 6.2 | % |
| Total 2024 | | 65,000 | | | 6,835,000 | | | 105.15 | | | 6.2 | % |
| 2025 | | 274,000 | | | 25,506,000 | | | 93.09 | | | 23.0 | % |
| | 2026 | | 238,000 | | | 24,372,000 | | | 102.40 | | | 22.0 | % |
| | 2027 | | 65,000 | | | 6,226,000 | | | 95.78 | | | 5.6 | % |
| 2028 | | 112,000 | | | 10,137,000 | | | 90.51 | | | 9.1 | % |
| | 2029 | | 120,000 | | | 11,930,000 | | | 99.42 | | | 10.8 | % |
| | 2030 | | 109,000 | | | 9,994,000 | | | 91.69 | | | 9.0 | % |
| | 2031 | | — | | | — | | | — | | | 0.0 | % |
| | 2032 | | 5,000 | | | 669,000 | | | 133.80 | | | 0.6 | % |
| | 2033 | | 15,000 | | | 1,745,000 | | | 116.33 | | | 1.6 | % |
| Thereafter | | 173,000 | | | 13,411,000 | | | 77.52 | | | 12.1 | % |
________________________________
(1) Excludes storage, vacancy and other.
(2) Includes month-to-month leases, holdover tenants, and leases expiring on the last day of the current quarter.
| | | | | | | | | | | | | | | | | | | | |
| CAPITAL EXPENDITURES, TENANT IMPROVEMENTS AND LEASING COMMISSIONS (unaudited) |
| CONSOLIDATED |
| (Amounts in thousands) | | | | | | |
| | Nine Months Ended September 30, 2023 | | Year Ended December 31, |
| | | 2022 | | 2021 |
| Amounts paid for capital expenditures: | | | | | | |
| Expenditures to maintain assets | | $ | 75,264 | | | $ | 85,573 | | | $ | 75,133 | |
| Tenant improvements | | 46,354 | | | 41,934 | | | 68,284 | |
| Leasing commissions | | 12,232 | | | 16,005 | | | 36,274 | |
| Recurring tenant improvements, leasing commissions and other capital expenditures | | 133,850 | | | 143,512 | | | 179,691 | |
Non-recurring capital expenditures(1) | | 33,534 | | | 32,583 | | | 19,849 | |
| Total capital expenditures and leasing commissions | | $ | 167,384 | | | $ | 176,095 | | | $ | 199,540 | |
| | | | | | |
| | | | | | |
| | | Nine Months Ended September 30, 2023 | | Year Ended December 31, |
| | | | 2022 | | 2021 |
Amounts paid for development and redevelopment expenditures(2): | | | | | | |
| PENN 2 | | $ | 230,160 | | | $ | 266,676 | | | $ | 105,267 | |
| PENN 1 | | 65,314 | | | 102,445 | | | 171,824 | |
| Hotel Pennsylvania site | | 60,558 | | | 77,965 | | | 54,280 | |
| THE MART 2.0 | | 22,962 | | | 10,130 | | | 729 | |
| PENN Districtwide improvements | | 12,607 | | | 11,096 | | | 14,116 | |
| The Farley Building | | 10,380 | | | 224,382 | | | 202,414 | |
| PENN 11 | | 4,573 | | | 10,430 | | | 418 | |
| 220 CPS | | 4,155 | | | 10,186 | | | 19,351 | |
| Other | | 21,730 | | | 24,689 | | | 17,541 | |
| | $ | 432,439 | | | $ | 737,999 | | | $ | 585,940 | |
________________________________
(1)Primarily tenant improvements and leasing commissions on first generation space.
(2)Inclusive of capitalized interest expense, operating expenses and development payroll.
| | | | | | | | | | | | | | | | | | | | |
| CAPITAL EXPENDITURES, TENANT IMPROVEMENTS AND LEASING COMMISSIONS (unaudited) |
| NEW YORK SEGMENT |
| (Amounts in thousands) |
| | | | | | |
| | | Nine Months Ended September 30, 2023 | | Year Ended December 31, |
| | | 2022 | | 2021 |
| Amounts paid for capital expenditures: | | | | | | |
| Expenditures to maintain assets | | $ | 60,408 | | | $ | 60,588 | | | $ | 61,420 | |
| Tenant improvements | | 31,228 | | | 27,862 | | | 59,522 | |
| Leasing commissions | | 11,484 | | | 10,465 | | | 27,284 | |
| Recurring tenant improvements, leasing commissions and other capital expenditures | | 103,120 | | | 98,915 | | | 148,226 | |
Non-recurring capital expenditures(1) | | 28,776 | | | 28,992 | | | 19,694 | |
| Total capital expenditures and leasing commissions | | $ | 131,896 | | | $ | 127,907 | | | $ | 167,920 | |
| | | | | | |
| | | | | | |
| | | Nine Months Ended September 30, 2023 | | Year Ended December 31, |
| | | | 2022 | | 2021 |
Amounts paid for development and redevelopment expenditures(2): | | | | | | |
| PENN 2 | | $ | 230,160 | | | $ | 266,676 | | | $ | 105,267 | |
| PENN 1 | | 65,314 | | | 102,445 | | | 171,824 | |
| Hotel Pennsylvania site | | 60,558 | | | 77,965 | | | 54,280 | |
| PENN Districtwide improvements | | 12,607 | | | 11,096 | | | 14,116 | |
| The Farley Building | | 10,380 | | | 224,382 | | | 202,414 | |
| PENN 11 | | 4,573 | | | 10,430 | | | 418 | |
| Other | | 18,720 | | | 20,606 | | | 12,220 | |
| | $ | 402,312 | | | $ | 713,600 | | | $ | 560,539 | |
________________________________
(1)Primarily tenant improvements and leasing commissions on first generation space.
(2)Inclusive of capitalized interest expense, operating expenses and development payroll.
| | | | | | | | | | | | | | | | | | | | |
| CAPITAL EXPENDITURES, TENANT IMPROVEMENTS AND LEASING COMMISSIONS (unaudited) |
| THE MART |
| (Amounts in thousands) | | | | | | |
| | | Nine Months Ended September 30, 2023 | | Year Ended December 31, |
| | | 2022 | | 2021 |
| Amounts paid for capital expenditures: | | | | | | |
| Expenditures to maintain assets | | $ | 9,622 | | | $ | 18,137 | | | $ | 7,199 | |
| Tenant improvements | | 15,113 | | | 11,977 | | | 5,683 | |
| Leasing commissions | | 636 | | | 2,610 | | | 2,047 | |
| Recurring tenant improvements, leasing commissions and other capital expenditures | | 25,371 | | | 32,724 | | | 14,929 | |
Non-recurring capital expenditures(1) | | 4,674 | | | 676 | | | 155 | |
| Total capital expenditures and leasing commissions | | $ | 30,045 | | | $ | 33,400 | | | $ | 15,084 | |
| | | | | | |
| | | | | | |
| | | Nine Months Ended September 30, 2023 | | Year Ended December 31, |
| | | | 2022 | | 2021 |
Amounts paid for development and redevelopment expenditures(2): | | | | | | |
| THE MART 2.0 | | $ | 22,962 | | | $ | 10,130 | | | $ | 729 | |
| Other | | 3,010 | | | 4,083 | | | 1,068 | |
| | $ | 25,972 | | | $ | 14,213 | | | $ | 1,797 | |
________________________________
(1)Primarily tenant improvements and leasing commissions on first generation space.
(2)Inclusive of capitalized interest expense, operating expenses and development payroll.
| | | | | | | | | | | | | | | | | | | | |
| CAPITAL EXPENDITURES, TENANT IMPROVEMENTS AND LEASING COMMISSIONS (unaudited) |
| 555 CALIFORNIA STREET | | | | | | |
| (Amounts in thousands) | | | | | | |
| | | | | | |
| | | Nine Months Ended September 30, 2023 | | Year Ended December 31, |
| | | 2022 | | 2021 |
| Amounts paid for capital expenditures: | | | | | | |
| Expenditures to maintain assets | | $ | 5,234 | | | $ | 6,848 | | | $ | 6,514 | |
| Tenant improvements | | 13 | | | 2,095 | | | 3,079 | |
| Leasing commissions | | 112 | | | 2,930 | | | 6,943 | |
| Recurring tenant improvements, leasing commissions and other capital expenditures | | 5,359 | | | 11,873 | | | 16,536 | |
Non-recurring capital expenditures(1) | | 84 | | | 2,915 | | | — | |
| Total capital expenditures and leasing commissions | | $ | 5,443 | | | $ | 14,788 | | | $ | 16,536 | |
| | | | | | |
| | | | | | |
| | | Nine Months Ended September 30, 2023 | | Year Ended December 31, |
| | | | 2022 | | 2021 |
Amounts paid for development and redevelopment expenditures(2): | | | | | | |
| 345 Montgomery Street | | $ | — | | | $ | — | | | $ | 4,253 | |
| | | | | | |
________________________________
See notes below.
| | | | | | | | | | | | | | | | | | | | |
| CAPITAL EXPENDITURES (unaudited) |
| OTHER |
| (Amounts in thousands) | | | | | | |
| | | | | | |
| | | Nine Months Ended September 30, 2023 | | Year Ended December 31, |
| | | | 2022 | | 2021 |
Amounts paid for development and redevelopment expenditures(2): | | | | | | |
| 220 CPS | | $ | 4,155 | | | $ | 10,186 | | | $ | 19,351 | |
________________________________
(1)Primarily tenant improvements and leasing commissions on first generation space.
(2)Inclusive of capitalized interest expense, operating expenses and development payroll.
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| UNCONSOLIDATED JOINT VENTURES (unaudited) | | | | | | | |
| (Amounts in thousands) | | | | | | | |
| | | | As of September 30, 2023 | |
| Joint Venture Name | | Asset
Category | | Percentage Ownership | | Company's
Carrying
Amount | | Company's Pro rata Share of Debt(1) | | 100% of Joint Venture Debt(1) | | Maturity Date(2) | | Spread over LIBOR/SOFR | | Interest Rate(3) | |
| Fifth Avenue and Times Square JV | | Retail/Office | | 51.5% | | $ | 2,249,148 | | | $ | 419,078 | | | $ | 855,365 | | | Various | | Various | | Various | |
| | | | | | | | | | | | | | | | | |
| Alexander's | | Office/Retail | | 32.4% | | 91,914 | | | 355,280 | | | 1,096,544 | | | Various | | Various | | Various | |
| | | | | | | | | | | | | | | | | |
| Partially owned office buildings/land: | | | | | | | | | | | | | | | | | |
| 512 West 22nd Street | | Office/Retail | | 55.0% | | 59,768 | | | 71,088 | | | 129,250 | | | 06/25 | | S+200 | | 6.50% | |
| West 57th Street properties | | Office/Retail/Land | | 50.0% | | 51,696 | | | — | | | — | | | N/A | | N/A | | — | |
| 280 Park Avenue | | Office/Retail | | 50.0% | | 36,760 | | | 600,000 | | | 1,200,000 | | | 09/24 | | S+203 | | 7.36% | |
| 825 Seventh Avenue | | Office | | 50.0% | | 16,796 | | | 27,000 | | | 54,000 | | | 01/26 | | S+275 | | 8.08% | |
| 61 Ninth Avenue | | Office/Retail | | 45.1% | | 1,088 | | | 75,543 | | | 167,500 | | | 01/26 | | S+146 | | 5.85% | |
| 650 Madison Avenue | | Office/Retail | | 20.1% | | — | | | 161,024 | | | 800,000 | | | 12/29 | | N/A | | 3.49% | |
| | | | | | | | | | | | | | | | | |
| Other investments: | | | | | | | | | | | | | | | | | |
| Independence Plaza | | Residential/Retail | | 50.1% | | 53,525 | | | 338,175 | | | 675,000 | | | 07/25 | | N/A | | 4.25% | |
Sunset Pier 94 Studios(4) | | Studio Campus | | 49.9% | | 50,090 | | | 50 | | | 100 | | | 09/26 | | S+475 | | 10.08% | |
| Rosslyn Plaza | | Office/Residential | | 43.7% to 50.4% | | 34,957 | | | 12,603 | | | 25,000 | | | 04/26 | (5) | S+200 | | 7.33% | |
| Other | | Various | | Various | | 25,040 | | | 124,353 | | | 665,971 | | | Various | | Various | | Various | |
| | | | | | $ | 2,670,782 | | | $ | 2,184,194 | | | $ | 5,668,730 | | | | | | | | |
Investments in partially owned entities included in other liabilities(6): | | | | | | | | | | | | | | | | | |
| 7 West 34th Street | | Office/Retail | | 53.0% | | $ | (67,669) | | | $ | 159,000 | | | $ | 300,000 | | | 06/26 | | N/A | | 3.65% | |
| 85 Tenth Avenue | | Office/Retail | | 49.9% | | (10,736) | | | 311,875 | | | 625,000 | | | 12/26 | | N/A | | 4.55% | |
| | | | | | $ | (78,405) | | | $ | 470,875 | | | $ | 925,000 | | | | | | | | |
| | | | | | | | | | | | | | | | | |
________________________________
(1)Represents the contractual debt obligations. All amounts are non-recourse to us except the $300,000 mortgage loan on 7 West 34th Street and the $500,000 mortgage loan on 640 Fifth Avenue, included in Fifth Avenue and Times Square JV.
(2)Assumes the exercise of as-of-right extension options.
(3)Represents the interest rate in effect as of period end based on the appropriate reference rate as of the contractual reset date plus contractual spread, adjusted for hedging instruments, as applicable.
(4)On August 28, 2023, we entered into a joint venture to develop a purpose-built studio campus at Pier 94 in Manhattan. Our 49.9% investment is included within our New York segment. See page 3 for details. (5)On April 6, 2023, we completed a $25,000 refinancing of Rosslyn Plaza. The new loan matures in April 2026 and bears interest at SOFR plus 2.00%.
(6)Our negative basis results from distributions in excess of our investment.
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| UNCONSOLIDATED JOINT VENTURES (unaudited) | |
| (Amounts in thousands) | |
| Percentage Ownership at September 30, 2023 | | Our Share of Net Income (Loss) for the Three Months Ended September 30, | | Our Share of NOI (non-GAAP) for the Three Months Ended September 30, | |
| | | 2023 | | 2022 | | 2023 | | 2022 | |
| Joint Venture Name | | | | | | | | | | |
| New York: | | | | | | | | | | |
| Fifth Avenue and Times Square JV: | | | | | | | | | | |
| | | | | | | | | | |
| Equity in net income | 51.5% | | $ | 10,917 | | | $ | 11,941 | | | $ | 30,147 | | | $ | 33,330 | | |
| Return on preferred equity, net of our share of the expense | | | 9,430 | | | 9,430 | | | — | | | — | | |
| | | 20,347 | | | 21,371 | | | 30,147 | | | 33,330 | | |
| 280 Park Avenue | 50.0% | | (5,014) | | | (2,087) | | | 10,699 | | | 9,497 | | |
| Alexander's | 32.4% | | 3,341 | | | 4,740 | | | 9,586 | | | 9,639 | | |
| 85 Tenth Avenue | 49.9% | | (2,377) | | | (2,466) | | | 3,295 | | | 2,797 | | |
| 7 West 34th Street | 53.0% | | 1,236 | | | 1,186 | | | 3,716 | | | 3,712 | | |
| Independence Plaza | 50.1% | | (708) | | | (1,609) | | | 4,975 | | | 4,161 | | |
| 512 West 22nd Street | 55.0% | | (599) | | | 54 | | | 1,571 | | | 1,826 | | |
| West 57th Street properties | 50.0% | | (293) | | | (255) | | | (51) | | | 116 | | |
| 61 Ninth Avenue | 45.1% | | (23) | | | 152 | | | 1,909 | | | 1,613 | | |
| Other, net | Various | | 992 | | | 95 | | | 3,363 | | | 5,252 | | |
| | | 16,902 | | | 21,181 | | | 69,210 | | | 71,943 | | |
| Other: | | | | | | | | | | |
| Alexander's corporate fee income | 32.4% | | 1,184 | | | 1,170 | | | 659 | | | 647 | | |
| Rosslyn Plaza | 43.7% to 50.4% | | 441 | | | 348 | | | 1,089 | | | 1,106 | | |
| Other, net | Various | | (258) | | | 1,642 | | | 1,142 | | | 2,324 | | |
| | | 1,367 | | | 3,160 | | | 2,890 | | | 4,077 | | |
| | | | | | | | | | |
| Total | | | $ | 18,269 | | | $ | 24,341 | | | $ | 72,100 | | | $ | 76,020 | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| UNCONSOLIDATED JOINT VENTURES (unaudited) | |
| (Amounts in thousands) | |
| Percentage Ownership at September 30, 2023 | | Our Share of Net Income (Loss) for the Nine Months Ended September 30, | | Our Share of NOI (non-GAAP) for the Nine Months Ended September 30, | |
| | | 2023 | | 2022 | | 2023 | | 2022 | |
| Joint Venture Name | | | | | | | | | | |
| New York: | | | | | | | | | | |
| Fifth Avenue and Times Square JV: | | | | | | | | | | |
| | | | | | | | | | |
| Equity in net income | 51.5% | | $ | 27,057 | | (1)(2) | $ | 41,915 | | | $ | 89,400 | | (2) | $ | 103,684 | | |
| Return on preferred equity, net of our share of the expense | | | 27,985 | | | 27,985 | | | — | | | — | | |
| | | 55,042 | | | 69,900 | | | 89,400 | | | 103,684 | | |
| Alexander's | 32.4% | | 26,626 | | (3) | 14,235 | | | 28,085 | | | 27,980 | | |
| 280 Park Avenue | 50.0% | | (14,524) | | (4) | 249 | | | 31,052 | | | 29,913 | | |
| 85 Tenth Avenue | 49.9% | | (8,224) | | | (7,928) | | | 8,150 | | | 7,899 | | |
| 7 West 34th Street | 53.0% | | 3,455 | | | 3,340 | | | 10,970 | | | 10,997 | | |
| Independence Plaza | 50.1% | | (1,835) | | | (3,540) | | | 14,936 | | | 13,421 | | |
| 512 West 22nd Street | 55.0% | | (1,751) | | | (96) | | | 4,552 | | | 4,085 | | |
| West 57th Street properties | 50.0% | | (719) | | | (710) | | | 16 | | | 237 | | |
| 61 Ninth Avenue | 45.1% | | (31) | | | 1,162 | | | 5,680 | | | 5,041 | | |
| | | | | | | | | | |
| Other, net | Various | | 9,316 | | | 625 | | | 9,202 | | | 15,859 | | |
| | | 67,355 | | | 77,237 | | | 202,043 | | | 219,116 | | |
| Other: | | | | | | | | | | |
| Alexander's corporate fee income | 32.4% | | 4,056 | | | 3,352 | | | 2,338 | | | 1,782 | | |
| Rosslyn Plaza | 43.7% to 50.4% | | 1,220 | | | 1,276 | | | 3,361 | | | 3,391 | | |
| Other, net | Various | | (424) | | | 1,910 | | | 3,200 | | | 4,483 | | |
| | | 4,852 | | | 6,538 | | | 8,899 | | | 9,656 | | |
| | | | | | | | | | |
| Total | | | $ | 72,207 | | | $ | 83,775 | | | $ | 210,942 | | | $ | 228,772 | | |
________________________________
(1)Includes a $5,120 accrual of default interest which was forgiven by the lender as part of the restructuring of the 697-703 Fifth Avenue loan and will be amortized over the remaining term of the restructured loan, reducing future interest expense.
(2)Includes lower income from lease renewals at 697-703 Fifth Avenue and 666 Fifth Avenue.
(3)On May 19, 2023, Alexander’s completed the sale of the Rego Park III land parcel for $71,060. As a result of the sale, we recognized our $16,396 share of the net gain and received a $711 sales commission from Alexander’s, of which $250 was paid to a third-party broker.
(4)Decrease primarily due to an increase in variable rate interest expense.
| | | | | | | | | | | | | | | | | | | | |
| CAPITAL STRUCTURE (unaudited) |
| (Amounts in thousands, except per share and per unit amounts) | |
| | | | | | |
| | | | | As of
September 30, 2023 | |
| Debt (contractual balances): | | | | | | |
Consolidated debt(1): | | | | | | |
| Mortgages payable | | | | | $ | 5,758,215 | | |
| Senior unsecured notes | | | | | 1,200,000 | | |
| $800 Million unsecured term loan | | | | | 800,000 | | |
| $2.5 Billion unsecured revolving credit facilities | | | | | 575,000 | | |
| | | | | 8,333,215 | | |
| Pro rata share of debt of non-consolidated entities | | | | | 2,655,069 | | |
| Less: Noncontrolling interests' share of consolidated debt (primarily 1290 Avenue of the Americas and 555 California Street) | | | | | (682,059) | | |
| | | | | 10,306,225 | | (A) |
| | | | | | |
| | Shares/Units | | Liquidation Preference | | | |
| Perpetual Preferred: | | | | | | |
| 3.25% preferred units (D-17) (141,400 units @ $25.00 per unit) | | | | | 3,535 | | |
| 5.40% Series L preferred shares | 12,000 | | | $ | 25.00 | | | 300,000 | | |
| 5.25% Series M preferred shares | 12,780 | | | 25.00 | | | 319,500 | | |
| 5.25% Series N preferred shares | 12,000 | | | 25.00 | | | 300,000 | | |
| 4.45% Series O preferred shares | 12,000 | | | 25.00 | | | 300,000 | | |
| | | | | 1,223,035 | | (B) |
| | | | | | |
| | Converted Shares | | September 30, 2023 Common Share Price | | | |
| Equity: | | | | | | |
| Common shares | 190,322 | | | $ | 22.68 | | | 4,316,503 | | |
| Class A units | 13,657 | | | 22.68 | | | 309,741 | | |
| Convertible share equivalents: | | | | | | |
Equity awards - unit equivalents | 3,270 | | | 22.68 | | | 74,164 | | |
| Series D-13 preferred units | 2,059 | | | 22.68 | | | 46,698 | | |
| Series G-1 through G-4 preferred units | 115 | | | 22.68 | | | 2,608 | | |
Series A preferred shares | 25 | | | 22.68 | | | 567 | | |
| | | | | 4,750,281 | | (C) |
| Total Market Capitalization (A+B+C) | | | | | $ | 16,279,541 | | |
________________________________
(1)See reconciliation on page xiv in the Appendix of consolidated debt, net as presented on our consolidated balance sheets to consolidated contractual debt as of September 30, 2023.
| | | | | | | | | | | | | | | | | | | | | | | |
| 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): |
| | | | | | | |
| |
| Third Quarter 2023 | | Second Quarter 2023 | | First Quarter 2023 | | Fourth Quarter 2022 |
| High price | $ | 26.21 | | | $ | 18.55 | | | $ | 26.76 | | | $ | 26.28 | |
| Low price | $ | 17.28 | | | $ | 12.31 | | | $ | 12.53 | | | $ | 20.03 | |
| Closing price - end of quarter | $ | 22.68 | | | $ | 18.14 | | | $ | 15.37 | | | $ | 20.81 | |
| | | | | | | |
Annualized quarterly dividend per share(1) | $ | — | | | $ | — | | | $ | 1.50 | | | $ | 2.12 | |
| | | | | | | |
| Annualized dividend yield - on closing price | — | % | | — | % | | 9.8 | % | | 10.2 | % |
| | | | | | | |
| Outstanding shares, Class A units and convertible preferred units as converted (in thousands) | 209,448 | | | 210,336 | | | 209,950 | | | 208,678 | |
| | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| Closing market value of outstanding shares, Class A units and convertible preferred units as converted | $ | 4.8 | Billion | | $ | 3.8 | Billion | | $ | 3.2 | Billion | | $ | 4.3 | Billion |
________________________________
(1)On April 26, 2023, Vornado announced the postponement of dividends on our common shares until the end of 2023, at which time, upon finalization of our 2023 taxable income, including the impact of asset sales, we will pay the 2023 dividend in either (i) cash, or (ii) a combination of cash and securities, as determined by our Board of Trustees.
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| DEBT ANALYSIS (unaudited) | | | | | | | | | | | |
| (Amounts in thousands) | | | | | | | | | | | |
| As of September 30, 2023 |
| Total | | Variable | | Fixed |
| (Contractual debt balances) | Amount | | Weighted Average Interest Rate | | Amount | | Weighted Average Interest Rate | | Amount | | Weighted Average Interest Rate |
Consolidated debt(1) | $ | 8,333,215 | | | 4.19% | | $ | 2,189,565 | | | 5.87% | | $ | 6,143,650 | | | 3.59% |
| Pro rata share of debt of non-consolidated entities | 2,655,069 | | | 5.37% | | 1,454,011 | | | 6.61% | | 1,201,058 | | | 3.87% |
| Total | 10,988,284 | | | 4.47% | | 3,643,576 | | | 6.16% | | 7,344,708 | | | 3.64% |
| Less: Noncontrolling interests' share of consolidated debt (primarily 1290 Avenue of the Americas and 555 California Street) | (682,059) | | | | | (682,059) | | | | | — | | | |
| Company's pro rata share of total debt | $ | 10,306,225 | | | 4.34% | | $ | 2,961,517 | | | 6.08% | | $ | 7,344,708 | | | 3.64% |
As of September 30, 2023, $1,995,365 of variable rate debt (at share) is subject to interest rate cap arrangements, the $966,152 of variable rate debt not subject to interest rate cap arrangements represents 9% of our total pro rata share of debt. See the following page for details.
| | | | | | | | | | | | | | | | | | | | | | | |
| Senior Unsecured Notes due 2025, 2026 and 2031 | | Unsecured Revolving Credit Facilities
and Unsecured Term Loan |
Debt Covenant Ratios:(2) | |
| | Required | | Actual | | Required | | Actual |
Total outstanding debt/total assets(3) | Less than 65% | | 50% | | Less than 60% | | 37% |
| Secured debt/total assets | Less than 50% | | 33% | | Less than 50% | | 27% |
| Interest coverage ratio (annualized combined EBITDA to annualized interest expense) | Greater than 1.50 | | 2.17 | | | | N/A |
| Fixed charge coverage | | | N/A | | Greater than 1.40 | | 2.08 |
| Unencumbered assets/unsecured debt | Greater than 150% | | 319% | | | | N/A |
Unsecured debt/cap value of unencumbered assets | | | N/A | | Less than 60% | | 21% |
| Unencumbered coverage ratio | | | N/A | | Greater than 1.50 | | 6.80 |
| | | | | | | | |
Consolidated Unencumbered EBITDA (non-GAAP): | | |
| | Q3 2023
Annualized | |
| New York | $ | 276,968 | | |
| Other | 95,456 | | |
| Total | $ | 372,424 | | |
________________________________
(1)See reconciliation on page xiv in the Appendix of consolidated debt, net as presented on our consolidated balance sheets to consolidated contractual debt as of September 30, 2023. (2)Our debt covenant ratios and consolidated unencumbered EBITDA 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 and amounts 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.
(3)Total assets include EBITDA capped at 7.0% under the senior unsecured notes due 2025, 2026 and 2031 and 6.0% under the unsecured revolving credit facilities and unsecured term loan.
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| HEDGING INSTRUMENTS AS OF SEPTEMBER 30, 2023 (unaudited) |
| | | | | | | | | | | | | | | | | | | | | |
| (Amounts in thousands) | | | | | | | | | | | | | | | | | | | | | |
| Debt Information | | Swap / Cap Information |
| Balance at Share | | Maturity Date(1) | | Variable Rate Spread | | Notional Amount at Share | | Expiration Date | | All-In Swapped Rate | | | | |
| | | | | | | | | |
| Interest Rate Swaps: | | | | | | | | | | | | | | | | | | | | | |
| Consolidated: | | | | | | | | | | | | | | | | | | | | | |
| 555 California Street mortgage loan | | | | | | | | | | | | | | | | | | | | | |
| In-place swap | $ | 840,000 | | | | 05/28 | | | | S+205 | | | $ | 840,000 | | | | 05/24 | | | 2.29% | | | | |
| Forward swap (effective 05/24) | | | | | | | | | | | | | | 05/26 | | | 6.03% | | | | |
| 770 Broadway mortgage loan | 700,000 | | | | 07/27 | | | | S+225 | | | 700,000 | | | | 07/27 | | | 4.98% | | | | |
| PENN 11 mortgage loan | 500,000 | | | | 10/25 | | | | S+206 | | | 500,000 | | | | 03/24 | | | 2.22% | | | | |
| Unsecured revolving credit facility | 575,000 | | | | 12/27 | | | | S+114 | | | 575,000 | | | | 08/27 | | | 3.87% | | | | |
| Unsecured term loan | 800,000 | | | | 12/27 | | | | S+129 | | | 800,000 | | (2) | | 10/23 | | | 4.04% | | | | |
| 100 West 33rd Street mortgage loan | 480,000 | | | | 06/27 | | | | S+165 | | | 480,000 | | | | 06/27 | | | 5.06% | | | | |
| 888 Seventh Avenue mortgage loan | 263,400 | | | | 12/25 | | | | S+180 | | | 200,000 | | | | 09/27 | | | 4.76% | | | | |
| 4 Union Square South mortgage loan | 120,000 | | | | 08/25 | | | | S+150 | | | 98,650 | | | | 01/25 | | | 3.74% | | | | |
| Unconsolidated: | | | | | | | | | | | | | | | | | | | | | |
| 731 Lexington Avenue - retail condominium mortgage loan | 97,200 | | | | 08/25 | | | | S+151 | | | 97,200 | | | | 05/25 | | | 1.76% | | | | |
| 50-70 West 93rd Street mortgage loan | 41,667 | | | | 12/24 | | | | S+164 | | | 41,168 | | | | 06/24 | | | 3.14% | | | | |
| $ | 4,417,267 | | | | | | | | | | | 4,332,018 | | | | | | | | | | | |
| Interest Rate Caps: | | | | | | | | | | | | | | | | | Index Strike Rate | | Cash Interest Rate(3) | | Effective Interest Rate(4) |
| Consolidated: | | | | | | | | | | | | | | | | | | |
| 1290 Avenue of the Americas mortgage loan | | | | | | | | | | | | | | | | | | | | | |
| In-place cap | $ | 665,000 | | | | 11/28 | | | | S+162 | | | 665,000 | | | | 11/23 | | | 3.89% | | 5.51% | | 5.56% |
| Forward cap (effective 11/23) | | | | | | | | | | | | | | 11/25 | | | 1.00% | | 2.62% | | 5.94% |
| One Park Avenue mortgage loan | 525,000 | | | | 03/26 | | | | S+122 | | | 525,000 | | | | 03/25 | | | 3.89% | | 5.11% | | 6.09% |
150 West 34th Street mortgage loan(5) | 100,000 | | | | 05/24 | | | | S+186 | | | 100,000 | | | | 05/24 | | | 4.10% | | 5.96% | | 6.72% |
| 606 Broadway mortgage loan | 37,060 | | | | 09/24 | | | | S+191 | | | 37,060 | | | | 09/24 | | | 4.00% | | 5.91% | | 5.95% |
| Unconsolidated: | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| 640 Fifth Avenue mortgage loan | 259,925 | | | | 05/24 | | | | S+111 | | | 259,925 | | | | 05/24 | | | 4.00% | | 5.11% | | 6.03% |
| 731 Lexington Avenue - office condominium mortgage loan | 162,000 | | | | 06/24 | | | | Prime+0 | | | 162,000 | | | | 06/24 | | | 6.00% | | 6.00% | | 8.46% |
| 61 Ninth Avenue mortgage loan | 75,543 | | | | 01/26 | | | | S+146 | | | 75,543 | | | | 02/24 | | | 4.39% | | 5.85% | | 6.02% |
| 512 West 22nd Street mortgage loan | 71,088 | | | | 06/25 | | | | S+200 | | | 71,088 | | | | 06/25 | | | 4.50% | | 6.50% | | 7.16% |
| Rego Park II mortgage loan | 65,624 | | | | 12/25 | | | | S+145 | | | 65,624 | | | | 11/24 | | | 4.15% | | 5.60% | | 6.28% |
| Fashion Centre Mall/Washington Tower mortgage loan | 34,125 | | | | 05/26 | | | | S+305 | | | 34,125 | | | | 05/24 | | | 3.89% | | 6.94% | | 6.98% |
| $ | 1,995,365 | | | | | | | | | | | 1,995,365 | | (6) | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| Fixed rate debt per loan agreements | | | | | | | | | | | 3,012,690 | | | | | | | | | | | |
| Variable rate debt not subject to interest rate swaps or caps | | | | | | | | | | | 966,152 | | (6) | | | | | | | | | |
| Total debt at share | | | | | | | | | | | $ | 10,306,225 | | | | | | | | | | | |
________________________________
(1)Assumes the exercise of as-of-right extension options.
(2)The unsecured term loan is subject to various interest rate swap arrangements during the term. See page 6 for details. (3)Equals the sum of (i) the index rate in effect as of the most recent contractual reset date, adjusted for hedging instruments, and (ii) the contractual spread.
(4)Equals the sum of (i) the cash interest rate and (ii) the effect of amortization of the interest rate cap premium over the term.
(5)On October 4, 2023, we entered into a 5.00% interest rate cap arrangement in connection with the $75,000 refinancing of 150 West 34th Street. See page 5 for details. (6)Our exposure to SOFR index increases is partially mitigated by an increase in interest income on our cash, cash equivalents and restricted cash.
See page 6 for details of interest rate hedging arrangements entered into during 2023.
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| CONSOLIDATED DEBT MATURITIES AT 100% (CONTRACTUAL BALANCES) (unaudited) |
| (Amounts in thousands) | | | | | | | | | | | | | | | | | | | | | | |
| Property | | Maturity Date(1) | | Spread over SOFR | | Interest Rate(2) | | 2023 | | 2024 | | 2025 | | 2026 | | 2027 | | Thereafter | | Total |
| Secured Debt: | | | | | | | | | | | | | | | | | | | | | | |
| 435 Seventh Avenue | | 02/24 | | | S+141 | | | 6.74% | | $ | — | | $ | 95,696 | | $ | — | | $ | — | | $ | — | | $ | — | | $ | 95,696 |
150 West 34th Street(3) | | 05/24 | | | S+186 | | | 5.96% | | — | | 100,000 | | — | | — | | — | | — | | 100,000 |
| 606 Broadway (50.0% interest) | | 09/24 | | | S+191 | | | 5.91% | | — | | 74,119 | | — | | — | | — | | — | | 74,119 |
| 4 Union Square South | | 08/25 | | | | | | 4.29% | | — | | — | | 120,000 | | — | | — | | — | | 120,000 |
| PENN 11 | | 10/25 | | | | | | 2.22% | | — | | — | | 500,000 | | — | | — | | — | | 500,000 |
| 888 Seventh Avenue | | 12/25 | | | | | | 5.33% | | 7,200 | | 21,600 | | 234,600 | | — | | — | | — | | 263,400 |
| One Park Avenue | | 03/26 | | | S+122 | | | 5.11% | | — | | — | | — | | 525,000 | | — | | — | | 525,000 |
| 350 Park Avenue | | 01/27 | | | | | | 3.92% | | — | | — | | — | | — | | 400,000 | | — | | 400,000 |
| 100 West 33rd Street | | 06/27 | | | | | | 5.06% | | — | | — | | — | | — | | 480,000 | | — | | 480,000 |
| 770 Broadway | | 07/27 | | | | | | 4.98% | | — | | — | | — | | — | | 700,000 | | — | | 700,000 |
| 555 California Street (70.0% interest) | | 05/28 | | | | | | 3.82% | | — | | — | | — | | — | | — | | 1,200,000 | | 1,200,000 |
| 1290 Avenue of the Americas (70.0% interest) | | 11/28 | | | S+162 | | | 5.51% | | — | | — | | — | | — | | — | | 950,000 | | 950,000 |
| 909 Third Avenue | | 04/31 | | | | | | 3.23% | | — | | — | | — | | — | | — | | 350,000 | | 350,000 |
| Total Secured Debt | | | | | | | | | | 7,200 | | 291,415 | | 854,600 | | 525,000 | | 1,580,000 | | 2,500,000 | | 5,758,215 |
| Unsecured Debt: | | | | | | | | | | | | | | | | | | | | | | |
| Senior unsecured notes due 2025 | | 01/25 | | | | | | 3.50% | | — | | — | | 450,000 | | — | | — | | — | | 450,000 |
| $1.25 Billion unsecured revolving credit facility | | 04/26 | | | S+119 | (4) | | 0.00% | | — | | — | | — | | — | | — | | — | | — |
| Senior unsecured notes due 2026 | | 06/26 | | | | | | 2.15% | | — | | — | | — | | 400,000 | | — | | — | | 400,000 |
| $1.25 Billion unsecured revolving credit facility | | 12/27 | | | | | | 3.87% | (4) | — | | — | | — | | — | | 575,000 | | — | | 575,000 |
| $800 Million unsecured term loan | | 12/27 | | | | | | 4.04% | (4) | — | | — | | — | | — | | 800,000 | | — | | 800,000 |
| Senior unsecured notes due 2031 | | 06/31 | | | | | | 3.40% | | — | | — | | — | | — | | — | | 350,000 | | 350,000 |
| Total Unsecured Debt | | | | | | | | | | — | | — | | 450,000 | | 400,000 | | 1,375,000 | | 350,000 | | 2,575,000 |
| Total Debt | | | | | | | | | | $ | 7,200 | | $ | 291,415 | | $ | 1,304,600 | | $ | 925,000 | | $ | 2,955,000 | | $ | 2,850,000 | | $ | 8,333,215 |
| Weighted average rate | | | | | | | | | | 7.13% | | 6.29% | | 3.37% | | 3.83% | | 4.38% | | 4.26% | | 4.19% |
| | | | | | | | | | | | | | | | | | | | | | |
Fixed rate debt(5) | | | | | | | | | | $ | — | | $ | — | | $ | 1,248,650 | | $ | 400,000 | | $ | 2,955,000 | | $ | 1,540,000 | | $ | 6,143,650 |
| Fixed weighted average rate expiring | | | | | | | | | | 0.00% | | 0.00% | | 3.21% | | 2.15% | | 4.38% | | 2.76% | | 3.59% |
| Floating rate debt | | | | | | | | | | $ | 7,200 | | $ | 291,415 | | $ | 55,950 | | $ | 525,000 | | $ | — | | $ | 1,310,000 | | $ | 2,189,565 |
| Floating weighted average rate expiring | | | | | | | | | | 7.13% | | 6.29% | | 7.02% | | 5.11% | | 0.00% | | 6.02% | | 5.87% |
________________________________
(1)Assumes the exercise of as-of-right extension options.
(2)Represents the interest rate in effect as of period end based on the appropriate reference rate as of the contractual reset date plus contractual spread, adjusted for hedging instruments, as applicable. See the previous page for information on interest rate swap and interest rate cap arrangements.
(3)On October 4, 2023, we completed a $75,000 refinancing of 150 West 34th Street. See page 5 for details. (4)Reflects a 0.01% interest rate reduction that we qualified for by achieving certain sustainability key performance indicator (KPI) metrics. We must achieve the KPI metrics annually in order to receive the interest rate reduction.
(5)Debt classified as fixed rate includes the effect of interest rate swap arrangements which may expire prior to debt maturity. See the previous page for information on interest rate swap arrangements.
| | | | | | | | | | | | | | | | | | | | | | | |
| TOP 30 TENANTS (unaudited) |
| (Amounts in thousands, except square feet) |
| | | | | | | |
| | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
| Tenants | | Square Footage At Share | | Annualized Escalated Rents At Share(1) | | % of Total Annualized Escalated Rents At Share |
| Meta Platforms, Inc. | | 1,451,153 | | | $ | 168,694 | | | 9.3 | % |
| IPG and affiliates | | 967,552 | | | 64,495 | | | 3.6 | % |
| Citadel | | 585,460 | | | 62,498 | | | 3.5 | % |
| New York University | | 685,290 | | | 48,890 | | | 2.7 | % |
| Google/Motorola Mobility (guaranteed by Google) | | 759,446 | | | 41,129 | | | 2.2 | % |
| Bloomberg L.P. | | 306,768 | | | 40,685 | | | 2.2 | % |
| Equitable Financial Life Insurance Company | | 335,356 | | | 36,383 | | | 2.0 | % |
| Amazon (including its Whole Foods subsidiary) | | 312,694 | | | 30,516 | | | 1.7 | % |
| Swatch Group USA | | 11,957 | | | 28,560 | | | 1.6 | % |
| Neuberger Berman Group LLC | | 306,612 | | | 28,220 | | | 1.5 | % |
| Madison Square Garden & Affiliates | | 408,031 | | | 27,357 | | | 1.5 | % |
| AMC Networks, Inc. | | 326,717 | | | 26,261 | | | 1.4 | % |
| Bank of America | | 247,459 | | | 25,229 | | | 1.4 | % |
| LVMH Brands | | 65,060 | | | 25,152 | | | 1.4 | % |
| Apple Inc. | | 412,434 | | | 24,077 | | | 1.3 | % |
| Victoria's Secret | | 33,156 | | | 20,106 | | | 1.1 | % |
| PwC | | 241,196 | | | 19,123 | | | 1.0 | % |
| Macy's | | 242,837 | | | 17,812 | | | 1.0 | % |
| Yahoo Inc. | | 161,588 | | | 16,961 | | | 0.9 | % |
| Fast Retailing (Uniqlo) | | 47,167 | | | 13,746 | | | 0.8 | % |
| Cushman & Wakefield | | 127,485 | | | 13,513 | | | 0.7 | % |
| The City of New York | | 232,010 | | | 12,126 | | | 0.7 | % |
| Foot Locker | | 149,987 | | | 11,726 | | | 0.6 | % |
| WSP USA | | 172,666 | | | 11,181 | | | 0.6 | % |
| AbbVie Inc. | | 168,673 | | | 11,164 | | | 0.6 | % |
| Axon Capital | | 93,127 | | | 10,925 | | | 0.6 | % |
| Burlington Coat Factory | | 108,844 | | | 10,514 | | | 0.6 | % |
| Alston & Bird LLP | | 126,872 | | | 10,177 | | | 0.6 | % |
| Aetna Life Insurance Company | | 64,196 | | | 10,149 | | | 0.6 | % |
| Kirkland & Ellis LLP | | 106,751 | | | 9,569 | | | 0.5 | % |
| | | | | | 48.2 | % |
________________________________
(1)Represents monthly contractual base rent before free rent plus tenant reimbursements multiplied by 12. Annualized escalated rents at share include leases signed but not yet commenced in place of current tenants or vacancy in the same space.
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| SQUARE FOOTAGE (unaudited) |
| (Square feet in thousands) |
| | | At Vornado's Share |
| | At
100% | | | | Under Development or Not Available for Lease | | In Service |
| | | Total | | | Office | | Retail | | Showroom | | Other |
| Segment: | | | | | | | | | | | | | |
| New York: | | | | | | | | | | | | | |
| Office | 20,207 | | | 17,376 | | | 1,303 | | | 15,890 | | | — | | | 183 | | | — | |
| Retail | 2,394 | | | 1,955 | | | 277 | | | — | | | 1,678 | | | — | | | — | |
Residential - 1,662 units | 1,498 | | | 764 | | | 19 | | | — | | | — | | | — | | | 745 | |
| Alexander's (32.4% interest), including 312 residential units | 2,455 | | | 795 | | | — | | | 305 | | | 408 | | | — | | | 82 | |
| | 26,554 | | | 20,890 | | | 1,599 | | | 16,195 | | | 2,086 | | | 183 | | | 827 | |
| | | | | | | | | | | | | |
| Other: | | | | | | | | | | | | | |
| THE MART | 3,683 | | | 3,674 | | | — | | | 2,094 | | | 108 | | | 1,257 | | | 215 | |
| 555 California Street (70% interest) | 1,819 | | | 1,274 | | | — | | | 1,240 | | | 34 | | | — | | | — | |
| Other | 2,845 | | | 1,346 | | | 149 | | | 212 | | | 874 | | | — | | | 111 | |
| | 8,347 | | | 6,294 | | | 149 | | | 3,546 | | | 1,016 | | | 1,257 | | | 326 | |
| | | | | | | | | | | | | |
| Total square feet at September 30, 2023 | 34,901 | | | 27,184 | | | 1,748 | | | 19,741 | | | 3,102 | | | 1,440 | | | 1,153 | |
| | | | | | | | | | | | | |
| Total square feet at June 30, 2023 | 34,978 | | | 27,396 | | | 1,797 | | | 19,744 | | | 3,251 | | | 1,430 | | | 1,174 | |
| | | | | | | | | | | | | |
| At 100% | | | | | | | | |
| Parking Garages (not included above): | Square Feet | | Number of
Garages | | Number of
Spaces | | | | | | | | |
| New York | 1,635 | | | 9 | | | 4,804 | | | | | | | | | |
| THE MART | 558 | | | 4 | | | 1,643 | | | | | | | | | |
| 555 California Street | 168 | | | 1 | | | 453 | | | | | | | | | |
| Rosslyn Plaza | 411 | | | 4 | | | 1,094 | | | | | | | | | |
| Total at September 30, 2023 | 2,772 | | | 18 | | | 7,994 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | |
| OCCUPANCY (unaudited) | |
| | | | | | | |
| | New York | | THE MART | | 555 California Street | |
| Occupancy rate at: | | | | | | | |
| September 30, 2023 | | 89.9 | % | | 76.8 | % | | 94.5 | % | |
| June 30, 2023 | | 90.1 | % | | 80.0 | % | | 94.5 | % | |
| December 31, 2022 | | 90.4 | % | | 81.6 | % | | 94.7 | % | |
| September 30, 2022 | | 90.3 | % | | 87.3 | % | | 94.7 | % | |
| | | | | | | |
| | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | |
| RESIDENTIAL STATISTICS (unaudited) |
|
| | | | Vornado's Ownership Interest |
| | Number of Units | | Number of Units | | Occupancy Rate | | Average Monthly
Rent Per Unit |
| New York: | | | | | | | |
| September 30, 2023 | 1,974 | | 939 | | 96.6% | | $4,061 |
| June 30, 2023 | 1,975 | | 940 | | 96.5% | | $4,010 |
| December 31, 2022 | 1,976 | | 941 | | 96.7% | | $3,882 |
| September 30, 2022 | 1,983 | | 948 | | 96.8% | | $3,877 |
| | | | | | | |
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| | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| GROUND LEASES (unaudited) |
| (Amounts in thousands, except square feet) |
| | | | | | | | | | | | | |
| Property | | | | Current Annual
Rent at Share | | Next Option Renewal Date | | Fully Extended
Lease Expiration | | Rent Increases and Other Information |
| Consolidated: | | | | | | | | | | | | | |
| New York: | | | | | | | | | | | | | |
| The Farley Building (95% interest) | | | | | | $ | 4,750 | | | | None | | 2116 | | None |
| PENN 1: | | | | | | | | | | | | | |
| Land | | | | | | TBD | | | 2073 | | 2098 | | Rent resets at the beginning of each 25-year renewal term at fair market value (“FMV”). The rent reset for the 25-year period commencing June 2023 has yet to be determined and may be material. |
Long Island Railroad Concourse Retail | | | | |
| 1,379 | | | | 2048 | | 2098 | | Two 25-year renewal options. Base rent increases every 10 years, with the next rent increase in 2028, based on the increase in gross income reduced by the increase in real estate taxes and operating expenses. In addition, percentage rent is payable based on gross annual income above a specified threshold. Base and percentage rent are reduced by a rent credit calculated as a percentage of development costs funded by Vornado. |
| 260 Eleventh Avenue | | | | | | 4,448 | | | | None | | 2114 | | Rent increases annually by the lesser of CPI or 1.5% compounded. We have a purchase option exercisable at a future date for $110,000 increased annually by the lesser of CPI or 1.5% compounded. |
| 888 Seventh Avenue | | | | | | 3,350 | | | | 2028 | | 2067 | | Two 20-year renewal options at FMV. |
| 330 West 34th Street - 65.2% ground leased | | | | | | 10,265 | | (1) | | 2051 | | 2149 | | Two 30-year and one 39-year renewal option at FMV. |
| 909 Third Avenue | | | | | | 1,600 | | | | 2041 | | 2063 | | One 22-year renewal option at current annual rent. |
| 962 Third Avenue (the Annex building to 150 East 58th Street) - 50.0% ground leased | | | | | | 666 | | | | None | | 2118 | | Rent resets every ten years to FMV.
|
| Other: | | | | | | | | | | | | | |
| Wayne Town Center | | | | | | 5,374 | | | | 2035 | | 2064 | | Two 10-year renewal options and one 9-year renewal option. Rent increases annually by the greater of CPI or 6%. |
| Annapolis | | | | | | 650 | | | | None | | 2042 | | Fixed rent increases to $750 per annum in 2032. |
| Unconsolidated: | | | | | | | | | | | | | |
Sunset Pier 94 Studios(2) (49.9% interest) | | | | | | 449 | | | | 2060 | | 2110 | | Five 10-year renewal options. Fixed rent increases in 2028 and every five years thereafter. Beginning in September 2028, additional rent is payable in amount equal to 6% of gross revenue less the base rent. |
61 Ninth Avenue (45.1% interest) | | | | | | 3,635 | | | | None | | 2115 | | Rent increases every three years based on CPI, subject to a cap. In 2051, 2071 and 2096, rent resets based on the increase in the property's gross revenue net of real estate taxes, if greater than the CPI reset. |
Flushing (Alexander's) (32.4% interest) | | | | | | 259 | | | | 2027 | | 2037 | | One 10-year renewal option at 90% of FMV. |
________________________________
(1)Represents the arbitration panel’s rent reset determination. We filed a petition in New York Supreme Court to vacate or modify the arbitration determination and our petition was denied. The appellate court affirmed the lower court’s decision. We have filed a motion for leave to appeal with the Court of Appeals.
(2)On August 28, 2023, we amended and restated the Pier 94 lease agreement. See page 3 for details.
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| NEW YORK SEGMENT |
| PROPERTY TABLE |
| (Annualized escalated rent amounts in thousands) | | %
Ownership | | %
Occupancy | | Weighted Average Escalated Annual Rent PSF(1) | | Annualized Escalated Rent(2) | | Square Feet | | Encumbrances (non-GAAP) (in thousands)(3) | | Major Tenants |
| Property | | | | | | Total
Property | | In Service | | Under Development
or Not Available
for Lease | | |
| NEW YORK: | | | | | | | | | | | | | | | | | | |
| PENN District: | | | | | | | | | | | | | | | | | | |
| PENN 1 | | | | | | | | | | | | | | | | | | |
| (ground leased through 2098)** | | | | | | | | | | | | | | | | | | Cisco, Hartford Fire Insurance, Empire Healthchoice Assurance, Inc., United |
| | | | | | | | | | | | | | | | | | Healthcare Services, Inc., Siemens Mobility, WSP USA, Gusto Inc., Samsung*, |
| -Office | | 100.0 | % | | 81.9 | % | | $ | 79.49 | | | | | 2,254,000 | | | 2,254,000 | | | — | | | | | Canaccord Genuity LLC* |
| -Retail | | 100.0 | % | | 100.0 | % | | 180.04 | | | | | 304,000 | | | 70,000 | | | 234,000 | | | | | Bank of America, Starbucks, Blue Bottle Coffee Inc., Shake Shack* |
| | | 100.0 | % | | 82.4 | % | | 82.81 | | | $ | 176,800 | | | 2,558,000 | | | 2,324,000 | | | 234,000 | | | $ | — | | | |
| | | | | | | | | | | | | | | | | | |
| PENN 2 | | | | | | | | | | | | | | | | | | |
| -Office | | 100.0 | % | | 100.0 | % | | 62.26 | | | | | 1,577,000 | | | 407,000 | | | 1,170,000 | | | | | Madison Square Garden, EMC |
| -Retail | | 100.0 | % | | 100.0 | % | | 618.21 | | | | | 43,000 | | | 4,000 | | | 39,000 | | | | | JPMorgan Chase |
| | | 100.0 | % | | 100.0 | % | | 67.87 | | | 31,200 | | | 1,620,000 | | | 411,000 | | | 1,209,000 | | | 575,000 | | (4) | |
| | | | | | | | | | | | | | | | | | |
The Farley Building (ground and building leased through 2116)** | | | | | | | | | | | | | | | | | | |
| -Office | | 95.0 | % | | 100.0 | % | | 119.62 | | | | | 730,000 | | | 730,000 | | | — | | | | | Meta Platforms, Inc. |
| -Retail | | 95.0 | % | | 24.1 | % | | 407.48 | | | | | 116,000 | | | 116,000 | | | — | | | | | Duane Reade, Magnolia Bakery, Starbucks, Birch Coffee, H&H Bagels |
| | 95.0 | % | | 89.8 | % | | 130.00 | | | 98,600 | | | 846,000 | | | 846,000 | | | — | | | — | | | |
| | | | | | | | | | | | | | | | | | |
| PENN 11 | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | |
| -Office | | 100.0 | % | | 100.0 | % | | 70.57 | | | | | 1,110,000 | | | 1,110,000 | | | — | | | | | Apple Inc., Madison Square Garden, AMC Networks, Inc., Macy's |
| -Retail | | 100.0 | % | | 80.1 | % | | 150.80 | | | | | 39,000 | | | 39,000 | | | — | | | | | PNC Bank National Association, Starbucks |
| | | 100.0 | % | | 99.3 | % | | 72.82 | | | 77,600 | | | 1,149,000 | | | 1,149,000 | | | — | | | 500,000 | | | |
| | | | | | | | | | | | | | | | | | |
| 100 West 33rd Street | | | | | | | | | | | | | | | | | | |
| -Office | | 100.0 | % | | 89.5 | % | | 67.91 | | | | | 859,000 | | | 859,000 | | | — | | | | | IPG and affiliates |
| -Retail | | 100.0 | % | | 3.6 | % | | 36.03 | | | | | 255,000 | | | 255,000 | | | — | | | | | Aeropostale |
| | 100.0 | % | | 70.5 | % | | 67.55 | | | 52,200 | | | 1,114,000 | | | 1,114,000 | | | — | | | 480,000 | | | |
| | | | | | | | | | | | | | | | | | |
| 330 West 34th Street | | | | | | | | | | | | | | | | | | |
| (65.2% ground leased through 2149)** | | | | | | | | | | | | | | | | | | |
| -Office | | 100.0 | % | | 75.4 | % | | 76.86 | | | | | 702,000 | | | 702,000 | | | — | | | | | Structure Tone, Deutsch, Inc., Web.com, Footlocker, HomeAdvisor, Inc. |
| -Retail | | 100.0 | % | | 91.1 | % | | 128.43 | | | | | 22,000 | | | 22,000 | | | — | | | | | Starbucks |
| | | 100.0 | % | | 75.7 | % | | 78.27 | | | 41,600 | | | 724,000 | | | 724,000 | | | — | | | 100,000 | | (5) | |
| | | | | | | | | | | | | | | | | | |
| 435 Seventh Avenue | | | | | | | | | | | | | | | | | | |
| -Retail | | 100.0 | % | | 100.0 | % | | 35.22 | | | 1,500 | | | 43,000 | | | 43,000 | | | — | | | 95,696 | | | Forever 21 |
| | | | | | | | | | | | | | | | | | |
| 7 West 34th Street | | | | | | | | | | | | | | | | | | |
| -Office | | 53.0 | % | | 100.0 | % | | 80.83 | | | | | 458,000 | | | 458,000 | | | — | | | | | Amazon |
| -Retail | | 53.0 | % | | 100.0 | % | | 360.98 | | | | | 19,000 | | | 19,000 | | | — | | | | | Amazon, Lindt, Naturalizer (guaranteed by Caleres) |
| | | 53.0 | % | | 100.0 | % | | 92.67 | | | 43,300 | | | 477,000 | | | 477,000 | | | — | | | 300,000 | | | |
| | | | | | | | | | | | | | | | | | |
| 431 Seventh Avenue | | | | | | | | | | | | | | | | | | |
| -Retail | | 100.0 | % | | 100.0 | % | | 249.41 | | | 1,100 | | | 9,000 | | | 9,000 | | | — | | | — | | | Essen |
| | | | | | | | | | | | | | | | | | |
| 138-142 West 32nd Street | | | | | | | | | | | | | | | | | | |
| -Retail | | 100.0 | % | | 80.3 | % | | 121.11 | | | 400 | | | 8,000 | | | 8,000 | | | — | | | — | | | |
| | | | | | | | | | | | | | | | | | |
| 150 West 34th Street | | | | | | | | | | | | | | | | | | |
| -Retail | | 100.0 | % | | 100.0 | % | | 112.53 | | | 8,800 | | | 78,000 | | | 78,000 | | | — | | | 100,000 | | (6) | Old Navy |
| | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| NEW YORK SEGMENT |
| PROPERTY TABLE |
| (Annualized escalated rent amounts in thousands) | | %
Ownership | | %
Occupancy | | Weighted Average Escalated Annual Rent PSF(1) | | Annualized Escalated Rent(2) | | Square Feet | | Encumbrances (non-GAAP) (in thousands)(3) | | 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 | % | | $ | 75.54 | | | $ | 200 | | | 3,000 | | | 3,000 | | | — | | | $ | — | | | |
| | | | | | | | | | | | | | | | | | |
| 131-135 West 33rd Street | | | | | | | | | | | | | | | | | | |
| -Retail | | 100.0 | % | | 100.0 | % | | 60.59 | | | 1,400 | | | 23,000 | | | 23,000 | | | — | | | — | | | |
| | | | | | | | | | | | | | | | | | |
| Other (3 buildings) | | | | | | | | | | | | | | | | | | |
| -Retail | | 100.0 | % | | 100.0 | % | | 191.52 | | | 2,600 | | | 16,000 | | | 16,000 | | | — | | | — | | | |
| | | | | | | | | | | | | | | | | | |
| Total PENN District | | | | | | | | 537,300 | | | 8,668,000 | | | 7,225,000 | | | 1,443,000 | | | 2,150,696 | | | |
| | | | | | | | | | | | | | | | | | |
| Midtown East: | | | | | | | | | | | | | | | | | | |
| 909 Third Avenue | | | | | | | | | | | | | | | | | | |
| (ground leased through 2063)** | | | | | | | | | | | | | | | | | | IPG and affiliates, AbbVie Inc., United States Post Office, |
| -Office | | 100.0 | % | | 95.0 | % | | 65.56 | (7) | 59,900 | | | 1,351,000 | | | 1,351,000 | | | — | | | 350,000 | | | Geller & Company, Morrison Cohen LLP, Sard Verbinnen |
| | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | |
150 East 58th Street(8) | | | | | | | | | | | | | | | | | | |
| -Office | | 100.0 | % | | 85.6 | % | | 81.79 | | | | | 541,000 | | | 541,000 | | | — | | | | | Castle Harlan, Tournesol Realty LLC (Peter Marino) |
| -Retail | | 100.0 | % | | 100.0 | % | | 96.27 | | | | | 3,000 | | | 3,000 | | | — | | | | | |
| | | 100.0 | % | | 85.7 | % | | 81.87 | | | 37,900 | | | 544,000 | | | 544,000 | | | — | | | — | | | |
| | | | | | | | | | | | | | | | | | |
| 715 Lexington Avenue | | | | | | | | | | | | | | | | | | |
| -Retail | | 100.0 | % | | 100.0 | % | | 198.28 | | | 4,300 | | | 22,000 | | | 22,000 | | | — | | | — | | | Orangetheory Fitness, Casper, Santander Bank, Blu Dot |
| | | | | | | | | | | | | | | | | | |
| 966 Third Avenue | | | | | | | | | | | | | | | | | | |
| -Retail | | 100.0 | % | | 100.0 | % | | 103.17 | | | 700 | | | 7,000 | | | 7,000 | | | — | | | — | | | McDonald's |
| | | | | | | | | | | | | | | | | | |
| 968 Third Avenue | | | | | | | | | | | | | | | | | | |
| -Retail | | 50.0 | % | | 100.0 | % | | 181.97 | | | 1,200 | | | 7,000 | | | 7,000 | | | — | | | — | | | Wells Fargo |
| | | | | | | | | | | | | | | | | | |
| Total Midtown East | | | | | | | | 104,000 | | | 1,931,000 | | | 1,931,000 | | | — | | | 350,000 | | | |
| | | | | | | | | | | | | | | | | | |
| Midtown West: | | | | | | | | | | | | | | | | | | |
| 888 Seventh Avenue | | | | | | | | | | | | | | | | | | |
| (ground leased through 2067)** | | | | | | | | | | | | | | | | | | Axon Capital LP, Lone Star US Acquisitions LLC, Top-New York, Inc., |
| -Office | | 100.0 | % | | 88.8 | % | | 98.93 | | | | | 872,000 | | | 872,000 | | | — | | | | | Vornado Executive Headquarters, United Talent Agency |
| -Retail | | 100.0 | % | | 100.0 | % | | 286.58 | | | | | 15,000 | | | 15,000 | | | — | | | | | Redeye Grill L.P. |
| | | 100.0 | % | | 88.9 | % | | 100.81 | | | 78,600 | | | 887,000 | | | 887,000 | | | — | | | 263,400 | | | |
| | | | | | | | | | | | | | | | | | |
| 57th Street - 2 buildings | | | | | | | | | | | | | | | | | | |
| -Office | | 50.0 | % | | 85.4 | % | | 61.58 | | | | | 81,000 | | | 81,000 | | | — | | | | | |
| -Retail | | 50.0 | % | | 42.5 | % | | 125.61 | | | | | 22,000 | | | 22,000 | | | — | | | | | |
| | | 50.0 | % | | 78.3 | % | | 67.37 | | | 5,100 | | | 103,000 | | | 103,000 | | | — | | | — | | | |
| | | | | | | | | | | | | | | | | | |
| 825 Seventh Avenue | | | | | | | | | | | | | | | | | | |
| -Office | | 50.0 | % | | 79.6 | % | | 59.02 | | | | | 169,000 | | | 169,000 | | | — | | | | | Young Adult Institute Inc., New Alternatives for Children, Inc. |
| -Retail | | 100.0 | % | | 100.0 | % | | 148.89 | | | | | 4,000 | | | 4,000 | | | — | | | | | |
| | | | 80.1 | % | | 61.63 | | | 8,400 | | | 173,000 | | | 173,000 | | | — | | | 54,000 | | | |
| | | | | | | | | | | | | | | | | | |
| Total Midtown West | | | | | | | | 92,100 | | | 1,163,000 | | | 1,163,000 | | | — | | | 317,400 | | | |
| | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| NEW YORK SEGMENT |
| PROPERTY TABLE |
| (Annualized escalated rent amounts in thousands) | | %
Ownership | | %
Occupancy | | Weighted Average Escalated Annual Rent PSF(1) | | Annualized Escalated Rent(2) | | Square Feet | | Encumbrances (non-GAAP) (in thousands)(3) | | Major Tenants |
| Property | | | | | | Total
Property | | In Service | | Under Development
or Not Available
for Lease | | |
| NEW YORK (Continued): | | | | | | | | | | | | | | | | | | |
| Park Avenue: | | | | | | | | | | | | | | | | | | |
| 280 Park Avenue | | | | | | | | | | | | | | | | | | Cohen & Steers Inc., Franklin Templeton Co. LLC, |
| -Office | | 50.0 | % | | 98.8 | % | | $ | 112.18 | | | | | 1,237,000 | | | 1,237,000 | | | — | | | | | PJT Partners, Investcorp International Inc., GIC Inc., Wells Fargo |
| -Retail | | 50.0 | % | | 93.8 | % | | 63.40 | | | | | 28,000 | | | 28,000 | | | — | | | | | Starbucks, Fasano Restaurant |
| | | 50.0 | % | | 98.7 | % | | 111.16 | | | $ | 138,000 | | | 1,265,000 | | | 1,265,000 | | | — | | | $ | 1,200,000 | | | |
| | | | | | | | | | | | | | | | | | |
| 350 Park Avenue | | | | | | | | | | | | | | | | | | |
| -Office | | 100.0 | % | | 100.0 | % | | 106.75 | | | 62,500 | | | 585,000 | | | 585,000 | | | — | | | 400,000 | | | Citadel |
| | | | | | | | | | | | | | | | | | |
| Total Park Avenue | | | | | | | | 200,500 | | | 1,850,000 | | | 1,850,000 | | | — | | | 1,600,000 | | | |
| Grand Central: | | | | | | | | | | | | | | | | | | |
| 90 Park Avenue | | | | | | | | | | | | | | | | | | Alston & Bird, Capital One, PwC, MassMutual, |
| -Office | | 100.0 | % | | 96.3 | % | | 82.42 | | | | | 938,000 | | | 938,000 | | | — | | | | | Factset Research Systems Inc., Foley & Lardner |
| -Retail | | 100.0 | % | | 72.8 | % | | 162.94 | | | | | 18,000 | | | 18,000 | | | — | | | | | Citibank, Starbucks |
| | | 100.0 | % | | 95.9 | % | | 83.54 | | | 73,900 | | | 956,000 | | | 956,000 | | | — | | | — | | | |
| | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | |
| Madison/Fifth: | | | | | | | | | | | | | | | | | | |
| 640 Fifth Avenue | | | | | | | | | | | | | | | | | | Fidelity Investments, Abbott Capital Management, |
| -Office | | 52.0 | % | | 91.6 | % | | 111.14 | | | | | 246,000 | | | 246,000 | | | — | | | 500,000 | | | Avolon Aerospace, Houlihan Lokey Advisors Parent, Inc. |
| -Retail | | 52.0 | % | | 96.2 | % | | 1,094.07 | | | | | 69,000 | | | 69,000 | | | — | | | — | | | Victoria's Secret, Dyson |
| | | 52.0 | % | | 92.3 | % | | 266.70 | | | 73,800 | | | 315,000 | | | 315,000 | | | — | | | 500,000 | | | |
| | | | | | | | | | | | | | | | | | |
| 666 Fifth Avenue | | | | | | | | | | | | | | | | | |
| -Retail | | 52.0 | % | | 100.0 | % | | 425.82 | | | 44,500 | | | 114,000 | | (9) | 114,000 | | | — | | | — | | | Fast Retailing (Uniqlo), Abercrombie & Fitch, Tissot |
| | | | | | | | | | | | | | | | | | |
| 595 Madison Avenue | | | | | | | | | | | | | | | | | | LVMH Moet Hennessy Louis Vuitton Inc., |
| -Office | | 100.0 | % | | 87.8 | % | | 80.49 | | | | | 300,000 | | | 300,000 | | | — | | | | | Albea Beauty Solutions, Aerin LLC |
| -Retail | | 100.0 | % | | 100.0 | % | | 737.24 | | | | | 30,000 | | | 30,000 | | | — | | | | | Fendi, Berluti, Christofle Silver Inc. |
| | | 100.0 | % | | 88.6 | % | | 127.45 | | | 38,700 | | | 330,000 | | | 330,000 | | | — | | | — | | | |
| | | | | | | | | | | | | | | | | | |
| 650 Madison Avenue | | | | | | | | | | | | | | | | | | Sotheby's International Realty, Inc., BC Partners Inc., |
| -Office | | 20.1 | % | | 85.8 | % | | 116.03 | | | | | 564,000 | | | 564,000 | | | — | | | | | Polo Ralph Lauren, Willett Advisors LLC (Bloomberg Philanthropies) |
| -Retail | | 20.1 | % | | 94.3 | % | | 1,055.14 | | | | | 37,000 | | | 37,000 | | | — | | | | | Moncler USA Inc., Tod's, Celine, Balmain |
| | | 20.1 | % | | 86.1 | % | | 157.41 | | | 77,800 | | | 601,000 | | | 601,000 | | | — | | | 800,000 | | | |
| | | | | | | | | | | | | | | | | | |
| 689 Fifth Avenue | | | | | | | | | | | | | | | | | | |
| -Office | | 52.0 | % | | 100.0 | % | | 94.89 | | | | | 81,000 | | | 81,000 | | | — | | | | | Yamaha Artist Services Inc., Brunello Cucinelli USA Inc. |
| -Retail | | 52.0 | % | | 100.0 | % | | 1,075.72 | | | | | 17,000 | | | 17,000 | | | — | | | | | MAC Cosmetics, Canada Goose |
| | | 52.0 | % | | 100.0 | % | | 210.73 | | | 20,600 | | | 98,000 | | | 98,000 | | | — | | | — | | | |
| | | | | | | | | | | | | | | | | | |
| 655 Fifth Avenue | | | | | | | | | | | | | | | | | | |
| -Retail | | 50.0 | % | | 100.0 | % | | 294.53 | | | 17,400 | | | 57,000 | | | 57,000 | | | — | | | — | | | Ferragamo |
| | | | | | | | | | | | | | | | | | |
| 697-703 Fifth Avenue | | | | | | | | | | | | | | | | | | |
| -Retail | | 44.8 | % | | 100.0 | % | | 2,531.92 | | | 41,500 | | | 26,000 | | | 26,000 | | | — | | | 355,365 | | | Swatch Group USA, Harry Winston |
| | | | | | | | | | | | | | | | | | |
| Total Madison/Fifth | | | | | | | | 314,300 | | | 1,541,000 | | | 1,541,000 | | | — | | | 1,655,365 | | | |
| | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| NEW YORK SEGMENT |
| PROPERTY TABLE |
| (Annualized escalated rent amounts in thousands) | | %
Ownership | | %
Occupancy | | Weighted Average Escalated Annual Rent PSF(1) | | Annualized Escalated Rent(2) | | Square Feet | | Encumbrances (non-GAAP) (in thousands)(3) | | Major Tenants |
| Property | | | | | | Total
Property | | In Service | | Under Development
or Not Available
for Lease | | |
| NEW YORK (Continued): | | | | | | | | | | | | | | | | | | |
| Midtown South: | | | | | | | | | | | | | | | | | | |
| 770 Broadway | | | | | | | | | | | | | | | | | | |
| -Office | | 100.0 | % | | 85.7 | % | | $ | 112.49 | | | | | 1,077,000 | | | 1,077,000 | | | — | | | | | Meta Platforms, Inc., Yahoo Inc. |
| -Retail | | 100.0 | % | | 92.0 | % | | 93.53 | | | | | 106,000 | | | 106,000 | | | — | | | | | Bank of America N.A., Wegmans Food Markets |
| | | 100.0 | % | | 86.2 | % | | 110.80 | | | $ | 111,200 | | | 1,183,000 | | | 1,183,000 | | | — | | | $ | 700,000 | | | |
| | | | | | | | | | | | | | | | | | |
| One Park Avenue | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | New York University, BMG Rights Management LLC, |
| -Office | | 100.0 | % | | 95.4 | % | | 72.35 | | | | | 867,000 | | | 867,000 | | | — | | | | | Robert A.M. Stern Architect |
| -Retail | | 100.0 | % | | 90.1 | % | | 83.17 | | | | | 78,000 | | | 78,000 | | | — | | | | | Bank of Baroda, Citibank, Equinox |
| | | 100.0 | % | | 95.0 | % | | 73.19 | | | 64,200 | | | 945,000 | | | 945,000 | | | — | | | 525,000 | | | |
| | | | | | | | | | | | | | | | | | |
| 4 Union Square South | | | | | | | | | | | | | | | | | | |
| -Retail | | 100.0 | % | | 100.0 | % | | 135.64 | | | 27,700 | | | 204,000 | | | 204,000 | | | — | | | 120,000 | | | Burlington, Whole Foods Market, DSW, Sephora |
| | | | | | | | | | | | | | | | | | |
| Total Midtown South | | | | | | | | 203,100 | | | 2,332,000 | | | 2,332,000 | | | — | | | 1,345,000 | | | |
| | | | | | | | | | | | | | | | | | |
| Rockefeller Center: | | | | | | | | | | | | | | | | | | |
| 1290 Avenue of the Americas | | | | | | | | | | | | | | | | | | Equitable Financial Life Insurance Company, Hachette Book Group Inc., |
| | | | | | | | | | | | | | | | | | | Bryan Cave LLP, Neuberger Berman Group LLC, SSB Realty LLC, |
| | | | | | | | | | | | | | | | | | Cushman & Wakefield, Columbia University, Selendy Gay Elsberg PLLC*, |
| -Office | | 70.0 | % | | 100.0 | % | | 95.02 | | | | | 2,043,000 | | | 2,043,000 | | | — | | | | | Fubotv Inc, LinkLaters |
| -Retail | | 70.0 | % | | 94.0 | % | | 231.75 | | | | | 76,000 | | | 76,000 | | | — | | | | | Duane Reade, JPMorgan Chase Bank, Starbucks |
| Total Rockefeller Center | | 70.0 | % | | 99.8 | % | | 98.46 | | | 202,900 | | | 2,119,000 | | | 2,119,000 | | | — | | | 950,000 | | | |
| | | | | | | | | | | | | | | | | | |
| SoHo: | | | | | | | | | | | | | | | | | | |
| 606 Broadway (19 East Houston Street) | | | | | | | | | | | | | | | | | | |
| -Office | | 50.0 | % | | 100.0 | % | | 138.74 | | | | | 30,000 | | | 30,000 | | | — | | | | | |
| -Retail | | 50.0 | % | | 100.0 | % | | 722.86 | | | | | 6,000 | | | 6,000 | | | — | | | | | HSBC, Harman International |
| | 50.0 | % | | 100.0 | % | | 215.57 | | | 7,500 | | | 36,000 | | | 36,000 | | | — | | | 74,119 | | | |
| | | | | | | | | | | | | | | | | | |
| 304 - 306 Canal Street | | | | | | | | | | | | | | | | | | |
| -Retail | | 100.0 | % | | 100.0 | % | | 58.96 | | | | | 4,000 | | | 4,000 | | | — | | | | | Stellar Works |
| -Residential (4 units) | | 100.0 | % | | 0.0 | % | | | | | | 9,000 | | | — | | | 9,000 | | | | | |
| | 100.0 | % | | | | | | 200 | | | 13,000 | | | 4,000 | | | 9,000 | | | — | | | |
| | | | | | | | | | | | | | | | | | |
| 334 Canal Street | | | | | | | | | | | | | | | | | | |
| -Retail | | 100.0 | % | | 0.0 | % | | — | | | | | 4,000 | | | — | | | 4,000 | | | | | |
| -Residential (4 units) | | 100.0 | % | | 0.0 | % | | | | | | 10,000 | | | — | | | 10,000 | | | | | |
| | 100.0 | % | | | | | | — | | | 14,000 | | | — | | | 14,000 | | | — | | | |
| | | | | | | | | | | | | | | | | | |
| Total SoHo | | | | | | | | 7,700 | | | 63,000 | | | 40,000 | | | 23,000 | | | 74,119 | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| NEW YORK SEGMENT |
| PROPERTY TABLE |
| (Annualized escalated rent amounts in thousands) | | %
Ownership | | %
Occupancy | | Weighted Average Escalated Annual Rent PSF(1) | | Annualized Escalated Rent(2) | | Square Feet | | Encumbrances (non-GAAP) (in thousands)(3) | | Major Tenants |
| Property | | | | | | Total
Property | | In Service | | Under Development
or Not Available
for Lease | | |
| NEW YORK (Continued): | | | | | | | | | | | | | | | | | | |
| Times Square: | | | | | | | | | | | | | | | | | | |
| 1540 Broadway | | | | | | | | | | | | | | | | | | Forever 21, Disney |
| -Retail | | 52.0 | % | | 78.5 | % | | $ | 138.05 | | | $ | 18,000 | | | 161,000 | | | 161,000 | | | — | | | $ | — | | | MAC Cosmetics, U.S. Polo |
| | | | | | | | | | | | | | | | | | |
| 1535 Broadway | | | | | | | | | | | | | | | | | | |
| -Retail | | 52.0 | % | | 100.0 | % | | 1,203.86 | | | | | 45,000 | | | 45,000 | | | — | | | | | T-Mobile, Invicta, Swatch Group USA, Levi's, Sephora |
| -Theatre | | 52.0 | % | | 100.0 | % | | 16.08 | | | | | 62,000 | | | 62,000 | | | — | | | | | Nederlander-Marquis Theatre |
| | | 52.0 | % | | 100.0 | % | | 462.32 | | | 45,900 | | | 107,000 | | | 107,000 | | | — | | | — | | | |
| | | | | | | | | | | | | | | | | | |
| Total Times Square | | | | | | | | 63,900 | | | 268,000 | | | 268,000 | | | — | | | — | | | |
| | | | | | | | | | | | | | | | | | |
| Upper East Side: | | | | | | | | | | | | | | | | | | |
| 1131 Third Avenue | | | | | | | | | | | | | | | | | | |
| -Retail | | 100.0 | % | | 100.0 | % | | 215.70 | | | 4,900 | | | 23,000 | | | 23,000 | | | — | | | — | | | Nike, Crunch LLC, J.Jill |
| | | | | | | | | | | | | | | | | | |
| 40 East 66th Street | | | | | | | | | | | | | | | | | | |
| -Residential (3 units) | | 100.0 | % | | 100.0 | % | | | | | | 10,000 | | | 10,000 | | | — | | | — | | | |
| | | | | | | | | | | | | | | | | | |
| Total Upper East Side | | | | | | | | 4,900 | | | 33,000 | | | 33,000 | | | — | | | — | | | |
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| | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | |
| Chelsea/Meatpacking District: | | | | | | | | | | | | | | | | | | |
| 260 Eleventh Avenue | | | | | | | | | | | | | | | | | | |
| (ground leased through 2114)** | | | | | | | | | | | | | | | | | | |
| -Office | | 100.0 | % | | 100.0 | % | | 49.54 | | | 10,400 | | | 209,000 | | | 209,000 | | | — | | | — | | | The City of New York |
| | | | | | | | | | | | | | | | | | |
| 85 Tenth Avenue | | | | | | | | | | | | | | | | | | Google, Telehouse International Corp., |
| -Office | | 49.9 | % | | 80.4 | % | | 92.72 | | | | | 595,000 | | | 595,000 | | | — | | | | | Clear Secure, Inc. |
| -Retail | | 49.9 | % | | 55.0 | % | | 51.41 | | | | | 43,000 | | | 43,000 | | | — | | | | | |
| | 49.9 | % | | 78.8 | % | | 90.95 | | | 45,300 | | | 638,000 | | | 638,000 | | | — | | | 625,000 | | | |
| | | | | | | | | | | | | | | | | | |
| 537 West 26th Street | | | | | | | | | | | | | | | | | | |
| -Retail | | 100.0 | % | | 100.0 | % | | 161.89 | | | 2,800 | | | 17,000 | | | 17,000 | | | — | | | — | | | The Chelsea Factory Inc. |
| | | | | | | | | | | | | | | | | | |
| 61 Ninth Avenue (2 buildings) | | | | | | | | | | | | | | | | | | |
| (ground leased through 2115)** | | | | | | | | | | | | | | | | | | |
| -Office | | 45.1 | % | | 100.0 | % | | 146.70 | | | | | 171,000 | | | 171,000 | | | — | | | | | Aetna Life Insurance Company, Apple Inc. |
| -Retail | | 45.1 | % | | 100.0 | % | | 396.19 | | | | | 23,000 | | | 23,000 | | | — | | | | | Starbucks |
| | 45.1 | % | | 100.0 | % | | 163.10 | | | 34,000 | | | 194,000 | | | 194,000 | | | — | | | 167,500 | | | |
| | | | | | | | | | | | | | | | | | |
| 512 West 22nd Street | | | | | | | | | | | | | | | | | | Warner Media, Next Jump, Omniva LLC*, |
| -Office | | 55.0 | % | | 84.5 | % | | 122.12 | | | | | 165,000 | | | 165,000 | | | — | | | | | Capricorn Investment Group |
| -Retail | | 55.0 | % | | 100.0 | % | | 103.93 | | | | | 8,000 | | | 8,000 | | | — | | | | | Galeria Nara Roesler, Harper's Books |
| | 55.0 | % | | 85.2 | % | | 121.14 | | | 17,800 | | | 173,000 | | | 173,000 | | | — | | | 129,250 | | | |
| | | | | | | | | | | | | | | | | | |
| Total Chelsea/Meatpacking District | | | | | | | | 110,300 | | | 1,231,000 | | | 1,231,000 | | | — | | | 921,750 | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| NEW YORK SEGMENT |
| PROPERTY TABLE |
| (Annualized escalated rent amounts in thousands) | | %
Ownership | | %
Occupancy | | Weighted Average Escalated Annual Rent PSF(1) | | Annualized Escalated Rent(2) | | Square Feet | | Encumbrances (non-GAAP) (in thousands)(3) | | Major Tenants |
| Property | | | | | | Total
Property | | In Service | | Under Development
or Not Available
for Lease | | |
| NEW YORK (Continued): | | | | | | | | | | | | | | | | | | |
| Upper West Side: | | | | | | | | | | | | | | | | | | |
| 50-70 West 93rd Street | | | | | | | | | | | | | | | | | | |
| -Residential (324 units) | | 49.9 | % | | 99.0 | % | | $ | — | | | $ | — | | | 283,000 | | | 283,000 | | | — | | | $ | 83,500 | | | |
| | | | | | | | | | | | | | | | | | |
| Tribeca: | | | | | | | | | | | | | | | | | | |
| Independence Plaza | | | | | | | | | | | | | | | | | | |
| -Residential (1,327 units) | | 50.1 | % | | 96.5 | % | | | | | | 1,186,000 | | | 1,186,000 | | | — | | | | | |
| -Retail | | 50.1 | % | | 54.5 | % | | 82.65 | | | | | 72,000 | | | 72,000 | | | — | | | | | Duane Reade |
| | | 50.1 | % | | | | | | 4,300 | | | 1,258,000 | | | 1,258,000 | | | — | | | 675,000 | | | |
| | | | | | | | | | | | | | | | | | |
| 339 Greenwich Street | | | | | | | | | | | | | | | | | | |
| -Retail | | 100.0 | % | | 100.0 | % | | 74.17 | | | 300 | | | 8,000 | | | 8,000 | | | — | | | — | | | Sarabeth's |
| | | | | | | | | | | | | | | | | | |
| Total Tribeca | | | | | | | | 4,600 | | | 1,266,000 | | | 1,266,000 | | | — | | | 675,000 | | | |
| New Jersey: | | | | | | | | | | | | | | | | | | |
| Paramus | | | | | | | | | | | | | | | | | | |
| -Office | | 100.0 | % | | 81.2 | % | | 25.79 | | | 2,600 | | | 129,000 | | | 129,000 | | | — | | | — | | | Vornado's Administrative Headquarters |
| | | | | | | | | | | | | | | | | | |
| Property under Development: | | | | | | | | | | | | | | | | | | |
Sunset Pier 94 Studios
(ground leased through 2110)** | | | | | | | | | | | | | | | | | | |
“-Studio | | 49.9 | % | | — | | | — | | | — | | | 266,000 | | | — | | | 266,000 | | | 100 | | | |
| | | | | | | | | | | | | | | | | | |
| Properties to be Developed: | | | | | | | | | | | | | | | | | | |
| Hotel Pennsylvania site | | | | | | | | | | | | | | | | | | |
| -Land | | 100.0 | % | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | |
| | | | | | | | | | | | | | | | | | |
| 57th Street | | | | | | | | | | | | | | | | | | |
| -Land | | 50.0 | % | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | |
| | | | | | | | | | | | | | | | | | |
| Eighth Avenue and 34th Street | | | | | | | | | | | | | | | | | | |
| -Land | | 100.0 | % | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | |
| | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | |
| New York Office: | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | |
| Total | | | | 91.8 | % | | $ | 89.06 | | | $ | 1,481,800 | | | 20,207,000 | | | 18,771,000 | | | 1,436,000 | | | $ | 8,619,250 | | | |
| | | | | | | | | | | | | | | | | | |
| Vornado's Ownership Interest | | | | 91.6 | % | | $ | 86.49 | | | $ | 1,224,600 | | | 17,376,000 | | | 16,073,000 | | | 1,303,000 | | | $ | 6,158,730 | | | |
| | | | | | | | | | | | | | | | | | |
| New York Retail: | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | |
| Total | | | | 76.6 | % | | $ | 273.48 | | | $ | 440,300 | | | 2,394,000 | | | 2,117,000 | | | 277,000 | | | $ | 745,180 | | | |
| | | | | | | | | | | | | | | | | | |
| Vornado's Ownership Interest | | | | 74.3 | % | | $ | 225.76 | | | $ | 288,900 | | | 1,955,000 | | | 1,678,000 | | | 277,000 | | | $ | 511,909 | | | |
| | | | | | | | | | | | | | | | | | |
| New York Residential: | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | |
| Total | | | | 96.5 | % | | | | | | 1,498,000 | | | 1,479,000 | | | 19,000 | | | $ | 758,500 | | | |
| | | | | | | | | | | | | | | | | | |
| Vornado's Ownership Interest | | | | 96.6 | % | | | | | | 764,000 | | | 745,000 | | | 19,000 | | | $ | 379,842 | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| NEW YORK SEGMENT |
| PROPERTY TABLE |
| (Annualized escalated rent amounts in thousands) | | %
Ownership | | %
Occupancy | | Weighted Average Escalated Annual Rent PSF(1) | | Annualized Escalated Rent(2) | | Square Feet | | Encumbrances (non-GAAP) (in thousands)(3) | | 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 | % | | $ | 133.53 | | | | | 939,000 | | | 939,000 | | | — | | | $ | 500,000 | | | Bloomberg L.P. |
| -Retail | | 32.4 | % | | 90.3 | % | | 252.71 | | | | | 140,000 | | | 140,000 | | | — | | | 300,000 | | | The Home Depot, Hutong, Capital One |
| | | 32.4 | % | | 98.9 | % | | 145.92 | | | $ | 153,600 | | | 1,079,000 | | | 1,079,000 | | | — | | | 800,000 | | | |
| | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
| Rego Park I, Queens (4.8 acres) | | 32.4 | % | | 63.3 | % | | 52.71 | | | 11,300 | | | 338,000 | | | 338,000 | | | — | | | | | Burlington, Marshalls, IKEA |
| | | | | | | | | | | | | | | | | | |
| Rego Park II (adjacent to Rego Park I), | | | | | | | | | | | | | | | | | | |
| Queens (6.6 acres) | | 32.4 | % | | 76.9 | % | | 69.24 | | | 32,500 | | | 616,000 | | | 616,000 | | | — | | | 202,544 | | | Costco, Kohl's, TJ Maxx, Best Buy* |
| | | | | | | | | | | | | | | | | | |
| Flushing, Queens (1.0 acre ground leased through 2037)** | | 32.4 | % | | 100.0 | % | | 32.88 | | | 5,500 | | | 167,000 | | | 167,000 | | | — | | | | | New World Mall LLC |
| | | | | | | | | | | | | | | | | | |
| The Alexander Apartment Tower, | | | | | | | | | | | | | | | | | | |
| Rego Park, Queens, NY | | | | | | | | | | | | | | | | | | |
| -Residential (312 units) | | 32.4 | % | | 93.6 | % | | | | | | 255,000 | | | 255,000 | | | — | | | 94,000 | | | |
| | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | |
| Total Alexander's | | 32.4 | % | | 87.3 | % | | 106.54 | | | 202,900 | | | 2,455,000 | | | 2,455,000 | | | — | | | 1,096,544 | | | |
| | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | |
| Total New York | | | | 90.1 | % | | $ | 104.28 | | | $ | 2,125,000 | | | 26,554,000 | | | 24,822,000 | | | 1,732,000 | | | $ | 11,219,474 | | | |
| | | | | | | | | | | | | | | | | | |
| Vornado's Ownership Interest | | | | 89.9 | % | | $ | 97.32 | | | $ | 1,621,200 | | | 20,890,000 | | | 19,291,000 | | | 1,599,000 | | | $ | 7,405,761 | | | |
________________________________
* Lease not yet commenced.
** Term assumes all renewal options exercised, if applicable.
(1)Weighted average escalated annual rent per square foot and average occupancy percentage for office properties excludes garages and de minimis amounts of storage space. Weighted average escalated annual rent per square foot for retail excludes non-selling space.
(2)Represents monthly contractual base rent before free rent plus tenant reimbursements multiplied by 12. Annualized escalated rents at share include leases signed but not yet commenced in place of current tenants or vacancy in the same space. Includes rent from storage and other non-selling space and excludes rent from residential units.
(3)Represents contractual debt obligations.
(4)Secured amount outstanding on revolving credit facilities.
(5)Amount represents debt on land which is owned 34.8% by Vornado.
(6)On October 4, 2023, we completed a $75,000 refinancing of 150 West 34th Street. See page 5 for details. (7)Excludes US Post Office lease for 492,000 square feet.
(8)Includes 962 Third Avenue (the Annex building to 150 East 58th Street) 50.0% ground leased through 2118**.
(9)75,000 square feet is leased from 666 Fifth Avenue Office Condominium.
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| OTHER SEGMENT |
| PROPERTY TABLE |
| (Annualized escalated rent amounts in thousands) | | %
Ownership | | %
Occupancy | | Weighted Average Escalated Annual Rent PSF(1) | | Annualized Escalated Rent(2) | | Square Feet | | Encumbrances (non-GAAP) (in thousands)(3) | | Major Tenants |
| Property | | | | | | Total
Property | | In Service | | Under Development
or Not Available
for Lease | | |
| THE MART: | | | | | | | | | | | | | | | | | | |
| THE MART, Chicago | | | | | | | | | | | | | | | | | | Motorola Mobility (guaranteed by Google), |
| | | | | | | | | | | | | | | | | | 1871, ANGI Home Services, Inc, Paypal, Inc., |
| | | | | | | | | | | | | | | | | | Allscripts Healthcare, Kellogg Company, |
| | | | | | | | | | | | | | | | | | Chicago School of Professional Psychology, ConAgra Foods Inc., |
| | | | | | | | | | | | | | | | | | Innovation Development Institute, Inc., Avant LLC, |
| | | | | | | | | | | | | | | | | | Allstate Insurance Company, Medline Industries, Inc, |
| -Office | | 100.0 | % | | 80.6 | % | | $ | 48.26 | | | $ | 82,300 | | | 2,094,000 | | | 2,094,000 | | | — | | | | | Steelcase, Baker, Knapp & Tubbs, Holly Hunt Ltd. |
| | | | | | | | | | | | | | | | | | |
| -Showroom/Trade show | | 100.0 | % | | 72.1 | % | | 56.69 | | | 59,400 | | | 1,472,000 | | | 1,472,000 | | | — | | | | | |
| -Retail | | 100.0 | % | | 64.0 | % | | 50.15 | | | 3,000 | | | 98,000 | | | 98,000 | | | — | | | | | |
| | 100.0 | % | | 76.8 | % | | 51.46 | | | 144,700 | | | 3,664,000 | | | 3,664,000 | | | — | | | $ | — | | | |
| | | | | | | | | | | | | | | | | | |
| Other (2 properties) | | 50.0 | % | | 93.9 | % | | 50.55 | | | 900 | | | 19,000 | | | 19,000 | | | — | | | 27,471 | | | |
| Total THE MART, Chicago | | | | | | | | 145,600 | | | 3,683,000 | | | 3,683,000 | | | — | | | 27,471 | | | |
| | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | |
| Property to be Developed: | | | | | | | | | | | | | | | | | | |
| 527 West Kinzie, Chicago | | 100.0 | % | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | |
| | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | |
| Total THE MART | | | | 76.8 | % | | $ | 51.45 | | | $ | 145,600 | | | 3,683,000 | | | 3,683,000 | | | — | | | $ | 27,471 | | | |
| | | | | | | | | | | | | | | | | | |
| Vornado's Ownership Interest | | | | 76.8 | % | | $ | 51.45 | | | $ | 145,200 | | | 3,674,000 | | | 3,674,000 | | — | | | $ | 13,736 | | | |
| | | | | | | | | | | | | | | | | | |
| 555 California Street: | | | | | | | | | | | | | | | | | | |
| 555 California Street | | 70.0 | % | | 98.7 | % | | $ | 94.82 | | | $ | 138,400 | | | 1,506,000 | | | 1,506,000 | | | — | | | $ | 1,200,000 | | | Bank of America, N.A., 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 | % | | 99.7 | % | | 89.53 | | | 20,700 | | | 235,000 | | | 235,000 | | | — | | | — | | | Bank of America, N.A., Regus, Ripple Labs Inc., Blue Shield,
Lending Home Corporation |
| | | | | | | | | | | | | | | | | | |
| 345 Montgomery Street | | 70.0 | % | | 0.0 | % | | — | | | — | | | 78,000 | | | 78,000 | | | — | | | — | | | |
| | | | | | | | | | | | | | | | | | |
| Total 555 California Street | | | | 94.5 | % | | $ | 94.10 | | | $ | 159,100 | | | 1,819,000 | | | 1,819,000 | | — | | | $ | 1,200,000 | | | |
| | | | | | | | | | | | | | | | | | |
| Vornado's Ownership Interest | | | | 94.5 | % | | $ | 94.10 | | | $ | 111,300 | | | 1,274,000 | | | 1,274,000 | | — | | | $ | 840,000 | | | |
| | | | | | | | | | | | | | | | | | |
________________________________
* Lease not yet commenced.
** Term assumes all renewal options exercised, if applicable.
(1)Weighted average escalated annual rent per square foot excludes ground rent, storage rent and garages.
(2)Represents monthly contractual base rent before free rent plus tenant reimbursements multiplied by 12. Annualized escalated rents at share include leases signed but not yet commenced in place of current tenants or vacancy in the same space. Includes rent from storage and other non-selling space and excludes rent from residential units.
(3)Represents the contractual debt obligations.
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| OTHER SEGMENT |
| PROPERTY TABLE |
| (Annualized escalated rent amounts in thousands) | | %
Ownership | | %
Occupancy | | Weighted Average Escalated Annual Rent PSF(1) | | Annualized Escalated Rent(2) | | Square Feet | | Encumbrances (non-GAAP) (in thousands)(4) | | Major Tenants |
| Property | | | | | | Total
Property | | In Service | | Under Development
or Not Available
for Lease | | |
| | | | | | Owned by
Company | | Owned by Tenant(3) | | | |
| OTHER: | | | | | | | | | | | | | | | | | | | | |
| Virginia: | | | | | | | | | | | | | | | | | | | | |
| Rosslyn Plaza | | | | | | | | | | | | | | | | | | | | |
| -Office - 4 buildings | | 46.2 | % | | 58.4 | % | | $ | 54.81 | | | | | 736,000 | | | 432,000 | | | — | | | 304,000 | | | | | Corporate Executive Board, Nathan Associates |
| -Residential - 2 buildings (197 units) | | 43.7 | % | | 98.0 | % | | | | | | 253,000 | | | 253,000 | | | — | | | — | | | | | |
| | 45.6 | % | | | | | | $ | 13,490 | | | 989,000 | | | 685,000 | | | — | | | 304,000 | | | $ | 25,000 | | | |
| | | | | | | | | | | | | | | | | | | | |
| Fashion Centre Mall / Washington Tower | | | | | | | | | | | | | | | | | | | | |
| -Office | | 7.5 | % | | 75.0 | % | | 55.92 | | | | | 170,000 | | | 170,000 | | | — | | | — | | | 42,300 | | | The Rand Corporation |
| -Retail | | 7.5 | % | | 96.5 | % | | 40.61 | | | | | 868,000 | | | 868,000 | | | — | | | — | | | 412,700 | | | Macy's, Nordstrom |
| | 7.5 | % | | 93.0 | % | | 42.63 | | | 51,819 | | | 1,038,000 | | | 1,038,000 | | | — | | | — | | | 455,000 | | | |
| | | | | | | | | | | | | | | | | | | | |
| New Jersey: | | | | | | | | | | | | | | | | | | | | |
| Wayne Town Center, Wayne (ground leased through 2064)** | | 100.0 | % | | 100.0 | % | | 31.51 | | | 14,893 | | | 690,000 | | | 238,000 | | | 443,000 | | | 9,000 | | | — | | | JCPenney, Costco, Dick's Sporting Goods, |
| | | | | | | | | | | | | | | | | | | | Nordstrom Rack, UFC FIT |
| | | | | | | | | | | | | | | | | | | | |
Atlantic City (11.3 acres ground leased through 2070 to VICI Properties for a portion of the Borgata Hotel and Casino complex) | | 100.0 | % | | 100.0 | % | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | VICI Properties (ground lessee) |
| | | | | | | | | | | | | | | | | | | | |
| Maryland: | | | | | | | | | | | | | | | | | | | | |
| Annapolis (ground and building leased through 2042)** | | 100.0 | % | | 100.0 | % | | 11.70 | | | 1,589 | | | 128,000 | | | 128,000 | | | — | | | — | | | — | | | The Home Depot |
| | | | | | | | | | | | | | | | | | | | |
| Total Other | | | | 88.9 | % | | $ | 40.36 | | | $ | 81,791 | | | 2,845,000 | | | 2,089,000 | | | 443,000 | | | 313,000 | | | $ | 480,000 | | | |
| | | | | | | | | | | | | | | | | | | | |
| Vornado's Ownership Interest | | | | 91.9 | % | | $ | 30.29 | | | $ | 26,601 | | | 1,346,000 | | | 754,000 | | | 443,000 | | | 149,000 | | | $ | 46,729 | | | |
________________________________
** Term assumes all renewal options exercised, if applicable.
(1)Weighted average escalated annual rent per square foot excludes ground rent, storage rent, garages and residential.
(2)Represents monthly contractual base rent before free rent plus tenant reimbursements multiplied by 12. Annualized escalated rents at share include leases signed but not yet commenced in place of current tenants or vacancy in the same space. Includes rent from storage and other non-selling space and excludes rent from residential units.
(3)Owned by tenant on land leased from the company.
(4)Represents the contractual debt obligations.
| | | | | | | | | | | | | | | | | |
| INVESTOR INFORMATION |
| | | | | | |
| Corporate Officers: | | | | | |
| Steven Roth | Chairman of the Board and Chief Executive Officer |
| Michael J. Franco | President and Chief Financial 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 |
| Haim Chera | Executive Vice President - Head of Retail |
| Thomas J. Sanelli | Executive Vice President - Finance and Chief Administrative Officer |
| | | | | |
| RESEARCH COVERAGE |
| | | | | | |
| Camille Bonnel | | | Caitlin Burrows/Julien Blouin | | Ronald Kamdem |
| Bank of America/BofA Securities | | | Goldman Sachs | | Morgan Stanley |
| 416-369-2140 | | | 212-902-4736/212-357-7297 | | 212-296-8319 |
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| John P. Kim | | | Dylan Burzinski | | Alexander Goldfarb/Connor Mitchell |
| BMO Capital Markets | | | Green Street Advisors | | Piper Sandler |
| 212-885-4115 | | | 949-640-8780 | | 212-466-7937/203-861-7615 |
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| Michael Griffin | | | Anthony Paolone/Ray Zhong | | Nicholas Yulico |
| Citi | | | JP Morgan | | Scotia Capital (USA) Inc |
| 212-816-5871 | | | 212-622-6682/212-622-5411 | | 212-225-6904 |
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| Derek Johnston | | | Mark Streeter/Ian Snyder | | Michael Lewis |
| Deutsche Bank | | | JP Morgan Fixed Income | | Truist Securities |
| 212-250-5683 | | | 212-834-5086/212-834-3798 | | 212-319-5659 |
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| Steve Sakwa | | | Vikram Malhotra | | |
| Evercore ISI | | | Mizuho Securities (USA) Inc. | | |
| 212-446-9462 | | | 212-282-3827 | | |
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| Research Coverage - 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. |
APPENDIX
DEFINITIONS AND NON-GAAP RECONCILIATIONS
| | |
| 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") at Share and NOI at Share - Cash Basis - NOI at share represents total revenues less operating expenses including our share of partially owned entities. NOI at share - cash basis represents NOI at share adjusted to exclude straight-line rental income and expense, amortization of acquired below and above market leases, accruals for ground rent resets yet to be determined, and other non-cash adjustments. We consider NOI at share - cash basis to be the primary non-GAAP financial measure for making decisions and assessing the unlevered performance of our segments as it relates to the total return on assets as opposed to the levered return on equity. As properties are bought and sold based on NOI at share - cash basis, we utilize this measure to make investment decisions as well as to compare the performance of our assets to that of our peers. NOI at share and NOI at share - cash basis should not be considered alternatives to net income or cash flow from operations and may not be comparable to similarly titled measures employed by other companies.
Same Store NOI at Share and Same Store NOI at Share - Cash Basis - Same store NOI at share represents NOI at share from operations which are in service in both the current and prior year reporting periods. Same store NOI at share - cash basis is same store NOI at share adjusted to exclude straight-line rental income and expense, amortization of acquired below and above market leases, accruals for ground rent resets yet to be determined, and other non-cash adjustments. We present these non-GAAP measures to (i) facilitate meaningful comparisons of the operational performance of our properties and segments, (ii) make decisions on whether to buy, sell or refinance properties, and (iii) compare the performance of our properties and segments to those of our peers. Same store NOI at share and same store NOI at share - cash basis should not be considered alternatives to net income or cash flow from operations and may not be comparable to similarly titled measures employed by other companies.
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 certain 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. The Company also uses FFO attributable to common shareholders plus assumed conversions, as adjusted for certain items that impact the comparability of period-to-period FFO, as one of several criteria to determine performance-based compensation for senior management. 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.
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.
Earnings Before Interest, Taxes, Depreciation and Amortization for Real Estate ("EBITDAre") - 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 EBITDAre in accordance with the NAREIT definition. NAREIT defines EBITDAre as GAAP net income or 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 entities 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 entities. 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.
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NON-GAAP RECONCILIATIONS RECONCILIATION OF NET INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS TO NET INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS, AS ADJUSTED (unaudited) |
| (Amounts in thousands, except per share amounts) |
| For the Three Months Ended | | For the Nine Months Ended
September 30, |
| September 30, | | June 30, 2023 | |
| 2023 | | 2022 | | | 2023 | | 2022 |
| Net income attributable to common shareholders | $ | 52,846 | | | $ | 7,769 | | | $ | 46,377 | | | $ | 104,391 | | | $ | 84,665 | |
| Per diluted share | $ | 0.28 | | | $ | 0.04 | | | $ | 0.24 | | | $ | 0.54 | | | $ | 0.44 | |
| | | | | | | | | |
| Certain (income) expense items that impact net income attributable to common shareholders: | | | | | | | | | |
| Net gain on contribution of Pier 94 leasehold interest to joint venture | (35,968) | | | — | | | — | | | (35,968) | | | — | |
| After-tax net gain on sale of The Armory Show | (17,076) | | | — | | | — | | | (17,076) | | | — | |
| Deferred tax liability on our investment in The Farley Building (held through a taxable REIT subsidiary) | 3,115 | | | 3,776 | | | 2,206 | | | 8,196 | | | 10,183 | |
| Our share of Alexander's gain on sale of Rego Park III land parcel | — | | | — | | | (16,396) | | | (16,396) | | | — | |
| After-tax net gain on sale of 220 CPS condominium units and ancillary amenities | — | | | — | | | — | | | (6,173) | | | (6,085) | |
| Other | 5,954 | | | 28,090 | | | (6,194) | | | 48 | | | 19,784 | |
| (43,975) | | | 31,866 | | | (20,384) | | | (67,369) | | | 23,882 | |
| Noncontrolling interests' share of above adjustments | 3,974 | | | (2,206) | | | 1,461 | | | 6,224 | | | (1,895) | |
| Total of certain (income) expense items that impact net income attributable to common shareholders | (40,001) | | | 29,660 | | | (18,923) | | | (61,145) | | | 21,987 | |
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| Net income attributable to common shareholders, as adjusted (non-GAAP) | $ | 12,845 | | | $ | 37,429 | | | $ | 27,454 | | | $ | 43,246 | | | $ | 106,652 | |
| Per diluted share (non-GAAP) | $ | 0.07 | | | $ | 0.19 | | | $ | 0.14 | | | $ | 0.22 | | | $ | 0.56 | |
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NON-GAAP RECONCILIATIONS RECONCILIATION OF NET INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS TO FFO ATTRIBUTABLE TO COMMON SHAREHOLDERS PLUS ASSUMED CONVERSIONS (unaudited) |
| (Amounts in thousands, except per share amounts) |
| For the Three Months Ended | | For the Nine Months Ended
September 30, |
| September 30, | | June 30, 2023 | |
| 2023 | | 2022 | | | 2023 | | 2022 |
| Reconciliation of net income attributable to common shareholders to FFO attributable to common shareholders plus assumed conversions (non-GAAP): | | | | | | | | | |
| Net income attributable to common shareholders | $ | 52,846 | | | $ | 7,769 | | | $ | 46,377 | | | $ | 104,391 | | | $ | 84,665 | |
| Per diluted share | $ | 0.28 | | | $ | 0.04 | | | $ | 0.24 | | | $ | 0.54 | | | $ | 0.44 | |
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| FFO adjustments: | | | | | | | | | |
| Depreciation and amortization of real property | $ | 97,809 | | | $ | 122,438 | | | $ | 94,922 | | | $ | 287,523 | | | $ | 335,020 | |
| Real estate impairment losses | 625 | | | — | | | — | | | 625 | | | — | |
| Net gain on sale of real estate | (53,045) | | | — | | | (260) | | | (53,305) | | | (28,354) | |
| Proportionate share of adjustments to equity in net income of partially owned entities to arrive at FFO: | | | | | | | | | |
| Depreciation and amortization of real property | 26,765 | | | 32,584 | | | 26,666 | | | 80,900 | | | 98,404 | |
| Net loss (gain) on sale of real estate | — | | | 6 | | | (16,545) | | | (16,545) | | | (169) | |
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| 72,154 | | | 155,028 | | | 104,783 | | | 299,198 | | | 404,901 | |
| Noncontrolling interests' share of above adjustments | (5,900) | | | (10,731) | | | (7,510) | | | (22,156) | | | (28,018) | |
| FFO adjustments, net | $ | 66,254 | | | $ | 144,297 | | | $ | 97,273 | | | $ | 277,042 | | | $ | 376,883 | |
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| FFO attributable to common shareholders (non-GAAP) | $ | 119,100 | | | $ | 152,066 | | | $ | 143,650 | | | $ | 381,433 | | | $ | 461,548 | |
| Impact of assumed conversion of dilutive convertible securities | 387 | | | 395 | | | 409 | | | 1,225 | | | 915 | |
| FFO attributable to common shareholders plus assumed conversions (non-GAAP) | 119,487 | | | 152,461 | | | 144,059 | | | 382,658 | | | 462,463 | |
| Add back of FFO allocated to noncontrolling interests of the Operating Partnership | 10,607 | | | 11,308 | | | 11,090 | | | 30,843 | | | 34,314 | |
| FFO attributable to Class A unitholders (non-GAAP) | $ | 130,094 | | | $ | 163,769 | | | $ | 155,149 | | | $ | 413,501 | | | $ | 496,777 | |
| FFO per diluted share (non-GAAP) | $ | 0.62 | | | $ | 0.79 | | | $ | 0.74 | | | $ | 1.97 | | | $ | 2.39 | |
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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) |
| (Amounts in thousands, except per share amounts) |
| For the Three Months Ended | | For the Nine Months Ended
September 30, |
| September 30, | | June 30, 2023 | |
| | 2023 | | 2022 | | | 2023 | | 2022 |
| FFO attributable to common shareholders plus assumed conversions (non-GAAP) | $ | 119,487 | | | $ | 152,461 | | | $ | 144,059 | | | $ | 382,658 | | | $ | 462,463 | |
| Per diluted share (non-GAAP) | $ | 0.62 | | | $ | 0.79 | | | $ | 0.74 | | | $ | 1.97 | | | $ | 2.39 | |
| | | | | | | | | |
| Certain expense (income) items that impact FFO attributable to common shareholders plus assumed conversions: | | | | | | | | | |
| Deferred tax liability on our investment in The Farley Building (held through a taxable REIT subsidiary) | $ | 3,115 | | | $ | 3,776 | | | $ | 2,206 | | | $ | 8,196 | | | $ | 10,183 | |
| After-tax net gain on sale of 220 CPS condominium units and ancillary amenities | — | | | — | | | — | | | (6,173) | | | (6,085) | |
| Other | 5,330 | | | 1,477 | | | (5,785) | | | (167) | | | 3,840 | |
| 8,445 | | | 5,253 | | | (3,579) | | | 1,856 | | | 7,938 | |
| Noncontrolling interests' share of above adjustments | (691) | | | (364) | | | 257 | | | (143) | | | (550) | |
| Total of certain expense (income) items that impact FFO attributable to common shareholders plus assumed conversions, net | $ | 7,754 | | | $ | 4,889 | | | $ | (3,322) | | | $ | 1,713 | | | $ | 7,388 | |
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| FFO attributable to common shareholders plus assumed conversions, as adjusted (non-GAAP) | $ | 127,241 | | | $ | 157,350 | | | $ | 140,737 | | | $ | 384,371 | | | $ | 469,851 | |
| Per diluted share (non-GAAP) | $ | 0.66 | | | $ | 0.81 | | | $ | 0.72 | | | $ | 1.98 | | | $ | 2.43 | |
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NON-GAAP RECONCILIATIONS RECONCILIATION OF FFO ATTRIBUTABLE TO COMMON SHAREHOLDERS PLUS ASSUMED CONVERSIONS TO FAD (unaudited) |
| (Amounts in thousands) |
| | For the Three Months Ended | | For the Nine Months Ended
September 30, |
| | September 30, | | June 30, 2023 | |
| | 2023 | | 2022 | | | 2023 | | 2022 |
FFO attributable to common shareholders plus assumed conversions (non-GAAP) | (A) | $ | 119,487 | | | $ | 152,461 | | | $ | 144,059 | | | $ | 382,658 | | | $ | 462,463 | |
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Adjustments to arrive at FAD (non-GAAP): | | | | | | | | | | |
| Certain items that impact FAD | | 8,445 | | | 5,253 | | | (3,579) | | | 1,856 | | | 7,130 | |
| Recurring tenant improvements, leasing commissions and other capital expenditures | | (56,687) | | | (42,314) | | | (46,932) | | | (164,220) | | | (121,897) | |
| Stock-based compensation expense | | 9,665 | | | 3,886 | | | 11,868 | | | 33,247 | | | 22,887 | |
| Amortization of debt issuance costs | | 10,012 | | | 5,546 | | | 9,162 | | | 28,014 | | | 17,759 | |
| Personal property depreciation | | 1,414 | | | 1,963 | | | 1,604 | | | 4,249 | | | 4,374 | |
| Non-cash adjustments for straight-line rents, amortization of acquired below-market leases, net and other | | (2,980) | | | (1,419) | | | (5,570) | | | (3,498) | | | (8,824) | |
| Noncontrolling interests in the Operating Partnership's share of above adjustments | | 2,465 | | | 1,812 | | | 2,317 | | | 7,323 | | | 5,375 | |
| FAD adjustments, net | (B) | (27,666) | | | (25,273) | | | (31,130) | | | (93,029) | | | (73,196) | |
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| FAD (non-GAAP) | (A+B) | $ | 91,821 | | | $ | 127,188 | | | $ | 112,929 | | | $ | 289,629 | | | $ | 389,267 | |
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FAD payout ratio (1) | | 0.0 | % | | 80.3 | % | | 0.0 | % | | 25.2 | % | | 79.1 | % |
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(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 expenditures, the commencement of new leases and the seasonality of our operations.
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NON-GAAP RECONCILIATIONS RECONCILIATION OF NET INCOME TO NET OPERATING INCOME AT SHARE AND NET OPERATING INCOME AT SHARE - CASH BASIS (unaudited) |
| (Amounts in thousands) |
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| For the Three Months Ended | | For the Nine Months Ended
September 30, |
| September 30, | | June 30, 2023 | |
| 2023 | | 2022 | | | 2023 | | 2022 |
| Net income | $ | 59,570 | | | $ | 20,112 | | | $ | 62,733 | | | $ | 133,501 | | | $ | 142,390 | |
| Depreciation and amortization expense | 110,349 | | | 134,526 | | | 107,162 | | | 324,076 | | | 370,631 | |
| General and administrative expense | 35,838 | | | 29,174 | | | 39,410 | | | 116,843 | | | 102,292 | |
| Transaction related costs and other | 813 | | | 996 | | | 30 | | | 1,501 | | | 4,961 | |
| Income from partially owned entities | (18,269) | | | (24,341) | | | (37,272) | | | (72,207) | | | (83,775) | |
| (Income) loss from real estate fund investments | (1,783) | | | 111 | | | 102 | | | (1,662) | | | (5,421) | |
| Interest and other investment income, net | (12,934) | | | (5,228) | | | (13,255) | | | (35,792) | | | (9,282) | |
| Interest and debt expense | 88,126 | | | 76,774 | | | 87,165 | | | 261,528 | | | 191,523 | |
| Net gains on disposition of wholly owned and partially owned assets | (56,136) | | | — | | | (936) | | | (64,592) | | | (35,384) | |
| Income tax expense | 11,684 | | | 3,711 | | | 4,497 | | | 20,848 | | | 14,686 | |
| NOI from partially owned entities | 72,100 | | | 76,020 | | | 70,745 | | | 210,942 | | | 228,772 | |
| NOI attributable to noncontrolling interests in consolidated subsidiaries | (8,363) | | | (14,766) | | | (18,742) | | | (38,869) | | | (51,100) | |
| NOI at share | 280,995 | | | 297,089 | | | 301,639 | | | 856,117 | | | 870,293 | |
| Non-cash adjustments for straight-line rents, amortization of acquired below-market leases, net, and other | (2,980) | | | (1,419) | | | (5,570) | | | (3,498) | | | (8,824) | |
| NOI at share - cash basis | $ | 278,015 | | | $ | 295,670 | | | $ | 296,069 | | | $ | 852,619 | | | $ | 861,469 | |
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NON-GAAP RECONCILIATIONS COMPONENTS OF NET OPERATING INCOME AT SHARE AND NET OPERATING INCOME AT SHARE - CASH BASIS (unaudited) |
| (Amounts in thousands) | | | | | | | | | | |
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| For the Three Months Ended September 30, |
| Total Revenues | | Operating Expenses | | NOI | | Non-cash Adjustments(1) | | NOI - cash basis |
| | 2023 | | 2022 | | 2023 | | 2022 | | 2023 | | 2022 | | 2023 | | 2022 | | 2023 | | 2022 |
| New York | $ | 364,768 | | | $ | 360,033 | | | $ | (186,147) | | | $ | (182,131) | | | $ | 178,621 | | | $ | 177,902 | | | $ | 1,165 | | | $ | (5,001) | | | $ | 179,786 | | | $ | 172,901 | |
| Other | 86,227 | | | 97,398 | | | (47,590) | | | (39,465) | | | 38,637 | | | 57,933 | | | 1,952 | | | 2,160 | | | 40,589 | | | 60,093 | |
| Consolidated total | 450,995 | | | 457,431 | | | (233,737) | | | (221,596) | | | 217,258 | | | 235,835 | | | 3,117 | | | (2,841) | | | 220,375 | | | 232,994 | |
| Noncontrolling interests' share in consolidated subsidiaries | (57,585) | | | (55,024) | | | 49,222 | | | 40,258 | | | (8,363) | | | (14,766) | | | (8,218) | | | 2,481 | | | (16,581) | | | (12,285) | |
| Our share of partially owned entities | 119,767 | | | 122,357 | | | (47,667) | | | (46,337) | | | 72,100 | | | 76,020 | | | 2,121 | | | (1,059) | | | 74,221 | | | 74,961 | |
| Vornado's share | $ | 513,177 | | | $ | 524,764 | | | $ | (232,182) | | | $ | (227,675) | | | $ | 280,995 | | | $ | 297,089 | | | $ | (2,980) | | | $ | (1,419) | | | $ | 278,015 | | | $ | 295,670 | |
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| For the Three Months Ended June 30, 2023 |
| Total Revenues | | Operating Expenses | | NOI | | Non-cash Adjustments(1) | | NOI - cash basis |
| New York | $ | 362,471 | | | $ | (176,410) | | | $ | 186,061 | | | $ | (840) | | | $ | 185,221 | |
| Other | 109,888 | | | (46,313) | | | 63,575 | | | 1,327 | | | 64,902 | |
| Consolidated total | 472,359 | | | (222,723) | | | 249,636 | | | 487 | | | 250,123 | |
| Noncontrolling interests' share in consolidated subsidiaries | (64,623) | | | 45,881 | | | (18,742) | | | (6,678) | | | (25,420) | |
| Our share of partially owned entities | 117,817 | | | (47,072) | | | 70,745 | | | 621 | | | 71,366 | |
| Vornado's share | $ | 525,553 | | | $ | (223,914) | | | $ | 301,639 | | | $ | (5,570) | | | $ | 296,069 | |
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| For the Nine Months Ended September 30, |
| Total Revenues | | Operating Expenses | | NOI | | Non-cash Adjustments(1) | | NOI - cash basis |
| | 2023 | | 2022 | | 2023 | | 2022 | | 2023 | | 2022 | | 2023 | | 2022 | | 2023 | | 2022 |
| New York | $ | 1,091,053 | | | $ | 1,082,743 | | | $ | (550,878) | | | $ | (536,238) | | | $ | 540,175 | | | $ | 546,505 | | | $ | 10,121 | | | $ | (33,563) | | | $ | 550,296 | | | $ | 512,942 | |
| Other | 278,224 | | | 270,312 | | | (134,355) | | | (124,196) | | | 143,869 | | | 146,116 | | | 3,371 | | | 4,578 | | | 147,240 | | | 150,694 | |
| Consolidated total | 1,369,277 | | | 1,353,055 | | | (685,233) | | | (660,434) | | | 684,044 | | | 692,621 | | | 13,492 | | | (28,985) | | | 697,536 | | | 663,636 | |
| Noncontrolling interests' share in consolidated subsidiaries | (179,023) | | | (163,568) | | | 140,154 | | | 112,468 | | | (38,869) | | | (51,100) | | | (20,510) | | | 24,795 | | | (59,379) | | | (26,305) | |
| Our share of partially owned entities | 353,110 | | | 364,795 | | | (142,168) | | | (136,023) | | | 210,942 | | | 228,772 | | | 3,520 | | | (4,634) | | | 214,462 | | | 224,138 | |
| Vornado's share | $ | 1,543,364 | | | $ | 1,554,282 | | | $ | (687,247) | | | $ | (683,989) | | | $ | 856,117 | | | $ | 870,293 | | | $ | (3,498) | | | $ | (8,824) | | | $ | 852,619 | | | $ | 861,469 | |
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(1)Includes adjustments for straight-line rents, amortization of acquired below-market leases, net and other.
| | |
| NON-GAAP RECONCILIATIONS |
| RECONCILIATION OF NOI AT SHARE TO SAME STORE NOI AT SHARE FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2023 COMPARED TO SEPTEMBER 30, 2022 (unaudited) |
| (Amounts in thousands) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Total | | New York | | THE MART | | 555 California Street | | Other |
| NOI at share for the three months ended September 30, 2023 | $ | 280,995 | | | $ | 245,634 | | | $ | 15,132 | | | $ | 16,564 | | | $ | 3,665 | |
| Less NOI at share from: | | | | | | | | | |
| Dispositions | (164) | | | (440) | | | 276 | | | — | | | — | |
| Development properties | (4,724) | | | (4,724) | | | — | | | — | | | — | |
| Other non-same store income, net | (4,774) | | | (1,109) | | | — | | | — | | | (3,665) | |
| Same store NOI at share for the three months ended September 30, 2023 | $ | 271,333 | | | $ | 239,361 | | | $ | 15,408 | | | $ | 16,564 | | | $ | — | |
| | | | | | | | | |
| NOI at share for the three months ended September 30, 2022 | $ | 297,089 | | | $ | 241,154 | | | $ | 35,769 | | | $ | 16,092 | | | $ | 4,074 | |
| Less NOI at share from: | | | | | | | | | |
| Dispositions | (5,040) | | | (2,748) | | | (2,292) | | | — | | | — | |
| Development properties | (4,549) | | | (4,549) | | | — | | | — | | | — | |
| Other non-same store income, net | (7,679) | | | (3,605) | | | — | | | — | | | (4,074) | |
| Same store NOI at share for the three months ended September 30, 2022 | $ | 279,821 | | | $ | 230,252 | | | $ | 33,477 | | | $ | 16,092 | | | $ | — | |
| | | | | | | | | |
| (Decrease) increase in same store NOI at share | $ | (8,488) | | | $ | 9,109 | | | $ | (18,069) | | | $ | 472 | | | $ | — | |
| | | | | | | | | |
| % (decrease) increase in same store NOI at share | (3.0) | % | | 4.0 | % | | (54.0) | % | | 2.9 | % | | 0.0 | % |
| | |
| NON-GAAP RECONCILIATIONS |
| RECONCILIATION OF NOI AT SHARE - CASH BASIS TO SAME STORE NOI AT SHARE - CASH BASIS FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2023 COMPARED TO SEPTEMBER 30, 2022 (unaudited) |
| (Amounts in thousands) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Total | | New York | | THE MART | | 555 California Street | | Other |
| NOI at share - cash basis for the three months ended September 30, 2023 | $ | 278,015 | | | $ | 240,844 | | | $ | 15,801 | | | $ | 17,552 | | | $ | 3,818 | |
| Less NOI at share - cash basis from: | | | | | | | | | |
| Dispositions | (274) | | | (487) | | | 213 | | | — | | | — | |
| Development properties | (4,131) | | | (4,131) | | | — | | | — | | | — | |
| Other non-same store income, net | (8,379) | | | (4,561) | | | — | | | — | | | (3,818) | |
| Same store NOI at share - cash basis for the three months ended September 30, 2023 | $ | 265,231 | | | $ | 231,665 | | | $ | 16,014 | | | $ | 17,552 | | | $ | — | |
| | | | | | | | | |
| NOI at share - cash basis for the three months ended September 30, 2022 | $ | 295,670 | | | $ | 237,692 | | | $ | 36,772 | | | $ | 16,926 | | | $ | 4,280 | |
| Less NOI at share - cash basis from: | | | | | | | | | |
| Dispositions | (4,857) | | | (2,655) | | | (2,202) | | | — | | | — | |
| Development properties | (4,943) | | | (4,943) | | | — | | | — | | | — | |
| Other non-same store income, net | (7,520) | | | (3,240) | | | — | | | — | | | (4,280) | |
| Same store NOI at share - cash basis for the three months ended September 30, 2022 | $ | 278,350 | | | $ | 226,854 | | | $ | 34,570 | | | $ | 16,926 | | | $ | — | |
| | | | | | | | | |
| (Decrease) increase in same store NOI at share - cash basis | $ | (13,119) | | | $ | 4,811 | | | $ | (18,556) | | | $ | 626 | | | $ | — | |
| | | | | | | | | |
| % (decrease) increase in same store NOI at share - cash basis | (4.7) | % | | 2.1 | % | | (53.7) | % | | 3.7 | % | | 0.0 | % |
| | |
| NON-GAAP RECONCILIATIONS |
| RECONCILIATION OF NOI AT SHARE TO SAME STORE NOI AT SHARE FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2023 COMPARED TO SEPTEMBER 30, 2022 (unaudited) |
| (Amounts in thousands) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Total | | New York | | THE MART | | 555 California Street | | Other |
| NOI at share for the nine months ended September 30, 2023 | $ | 856,117 | | | $ | 729,994 | | | $ | 47,003 | | | $ | 64,840 | | | $ | 14,280 | |
| Less NOI at share from: | | | | | | | | | |
| Dispositions | (1,301) | | | (1,577) | | | 276 | | | — | | | — | |
| Development properties | (19,864) | | | (19,864) | | | — | | | — | | | — | |
| Other non-same store (income) expense, net | (12,919) | | | 1,361 | | | — | | | — | | | (14,280) | |
| Same store NOI at share for the nine months ended September 30, 2023 | $ | 822,033 | | | $ | 709,914 | | | $ | 47,279 | | | $ | 64,840 | | | $ | — | |
| | | | | | | | | |
| NOI at share for the nine months ended September 30, 2022 | $ | 870,293 | | | $ | 732,913 | | | $ | 75,630 | | | $ | 49,051 | | | $ | 12,699 | |
| Less NOI at share from: | | | | | | | | | |
| Dispositions | (12,833) | | | (10,541) | | | (2,292) | | | — | | | — | |
| Development properties | (20,251) | | | (20,251) | | | — | | | — | | | — | |
| Other non-same store income, net | (24,402) | | | (11,703) | | | — | | | — | | | (12,699) | |
| Same store NOI at share for the nine months ended September 30, 2022 | $ | 812,807 | | | $ | 690,418 | | | $ | 73,338 | | | $ | 49,051 | | | $ | — | |
| | | | | | | | | |
| Increase (decrease) in same store NOI at share | $ | 9,226 | | | $ | 19,496 | | | $ | (26,059) | | | $ | 15,789 | | | $ | — | |
| | | | | | | | | |
| % increase (decrease) in same store NOI at share | 1.1 | % | | 2.8 | % | | (35.5) | % | | 32.2 | % | | 0.0 | % |
| | |
| NON-GAAP RECONCILIATIONS |
| RECONCILIATION OF NOI AT SHARE - CASH BASIS TO SAME STORE NOI AT SHARE - CASH BASIS FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2023 COMPARED TO SEPTEMBER 30, 2022 (unaudited) |
| (Amounts in thousands) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Total | | New York | | THE MART | | 555 California Street | | Other |
| NOI at share - cash basis for the nine months ended September 30, 2023 | $ | 852,619 | | | $ | 723,440 | | | $ | 47,068 | | | $ | 67,554 | | | $ | 14,557 | |
| Less NOI at share - cash basis from: | | | | | | | | | |
| Dispositions | (1,824) | | | (2,037) | | | 213 | | | — | | | — | |
| Development properties | (17,588) | | | (17,588) | | | — | | | — | | | — | |
| Other non-same store income, net | (20,589) | | | (6,032) | | | — | | | — | | | (14,557) | |
| Same store NOI at share - cash basis for the nine months ended September 30, 2023 | $ | 812,618 | | | $ | 697,783 | | | $ | 47,281 | | | $ | 67,554 | | | $ | — | |
| | | | | | | | | |
| NOI at share - cash basis for the nine months ended September 30, 2022 | $ | 861,469 | | | $ | 719,287 | | | $ | 78,749 | | | $ | 50,141 | | | $ | 13,292 | |
| Less NOI at share - cash basis from: | | | | | | | | | |
| Dispositions | (13,302) | | | (11,100) | | | (2,202) | | | — | | | — | |
| Development properties | (19,319) | | | (19,319) | | | — | | | — | | | — | |
| Other non-same store income, net | (25,320) | | | (12,028) | | | — | | | — | | | (13,292) | |
| Same store NOI at share - cash basis for the nine months ended September 30, 2022 | $ | 803,528 | | | $ | 676,840 | | | $ | 76,547 | | | $ | 50,141 | | | $ | — | |
| | | | | | | | | |
| Increase (decrease) in same store NOI at share - cash basis | $ | 9,090 | | | $ | 20,943 | | | $ | (29,266) | | | $ | 17,413 | | | $ | — | |
| | | | | | | | | |
| % increase (decrease) in same store NOI at share - cash basis | 1.1 | % | | 3.1 | % | | (38.2) | % | | 34.7 | % | | 0.0 | % |
| | |
| NON-GAAP RECONCILIATIONS |
| RECONCILIATION OF NOI AT SHARE TO SAME STORE NOI AT SHARE FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2023 COMPARED TO JUNE 30, 2023 (unaudited) |
| (Amounts in thousands) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Total | | New York | | THE MART | | 555 California Street | | Other |
| NOI at share for the three months ended September 30, 2023 | $ | 280,995 | | | $ | 245,634 | | | $ | 15,132 | | | $ | 16,564 | | | $ | 3,665 | |
| Less NOI at share from: | | | | | | | | | |
| Dispositions | (164) | | | (440) | | | 276 | | | — | | | — | |
| Development properties | (4,724) | | | (4,724) | | | — | | | — | | | — | |
| Other non-same store income, net | (4,414) | | | (749) | | | — | | | — | | | (3,665) | |
| Same store NOI at share for the three months ended September 30, 2023 | $ | 271,693 | | | $ | 239,721 | | | $ | 15,408 | | | $ | 16,564 | | | $ | — | |
| | | | | | | | | |
| NOI at share for the three months ended June 30, 2023 | $ | 301,639 | | | $ | 248,366 | | | $ | 16,462 | | | $ | 31,347 | | | $ | 5,464 | |
| Less NOI at share from: | | | | | | | | | |
| Dispositions | (181) | | | (567) | | | 386 | | | — | | | — | |
| Development properties | (4,206) | | | (4,206) | | | — | | | — | | | — | |
| Other non-same store income, net | (6,298) | | | (834) | | | — | | | — | | | (5,464) | |
| Same store NOI at share for the three months ended June 30, 2023 | $ | 290,954 | | | $ | 242,759 | | | $ | 16,848 | | | $ | 31,347 | | | $ | — | |
| | | | | | | | | |
| Decrease in same store NOI at share | $ | (19,261) | | | $ | (3,038) | | | $ | (1,440) | | | $ | (14,783) | | | $ | — | |
| | | | | | | | | |
| % decrease in same store NOI at share | (6.6) | % | | (1.3) | % | | (8.5) | % | | (47.2) | % | | 0.0 | % |
| | |
| NON-GAAP RECONCILIATIONS |
| RECONCILIATION OF NOI AT SHARE - CASH BASIS TO SAME STORE NOI AT SHARE - CASH BASIS FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2023 COMPARED TO JUNE 30, 2023 (unaudited) |
| (Amounts in thousands) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Total | | New York | | THE MART | | 555 California Street | | Other |
| NOI at share - cash basis for the three months ended September 30, 2023 | $ | 278,015 | | | $ | 240,844 | | | $ | 15,801 | | | $ | 17,552 | | | $ | 3,818 | |
| Less NOI at share - cash basis from: | | | | | | | | | |
| Dispositions | (274) | | | (487) | | | 213 | | | — | | | — | |
| Development properties | (4,131) | | | (4,131) | | | — | | | — | | | — | |
| Other non-same store income, net | (8,019) | | | (4,201) | | | — | | | — | | | (3,818) | |
| Same store NOI at share - cash basis for the three months ended September 30, 2023 | $ | 265,591 | | | $ | 232,025 | | | $ | 16,014 | | | $ | 17,552 | | | $ | — | |
| | | | | | | | | |
| NOI at share - cash basis for the three months ended June 30, 2023 | $ | 296,069 | | | $ | 241,569 | | | $ | 16,592 | | | $ | 32,284 | | | $ | 5,624 | |
| Less NOI at share - cash basis from: | | | | | | | | | |
| Dispositions | (345) | | | (822) | | | 477 | | | — | | | — | |
| Development properties | (4,389) | | | (4,389) | | | — | | | — | | | — | |
| Other non-same store income, net | (5,780) | | | (156) | | | — | | | — | | | (5,624) | |
| Same store NOI at share - cash basis for the three months ended June 30, 2023 | $ | 285,555 | | | $ | 236,202 | | | $ | 17,069 | | | $ | 32,284 | | | $ | — | |
| | | | | | | | | |
| Decrease in same store NOI at share - cash basis | $ | (19,964) | | | $ | (4,177) | | | $ | (1,055) | | | $ | (14,732) | | | $ | — | |
| | | | | | | | | |
| % decrease in same store NOI at share - cash basis | (7.0) | % | | (1.8) | % | | (6.2) | % | | (45.6) | % | | 0.0 | % |
| | | | | | | | | | | | | | | | | |
| NON-GAAP RECONCILIATIONS | | |
RECONCILIATION OF CONSOLIDATED DEBT, NET TO CONSOLIDATED CONTRACTUAL DEBT (unaudited) |
| (Amounts in thousands) |
| | | | | |
| As of September 30, 2023 |
| Consolidated Debt, Net | | Deferred Financing Costs, Net and Other | | Consolidated Contractual Debt |
| Mortgages payable | $ | 5,714,761 | | | $ | 43,454 | | | $ | 5,758,215 | |
| Senior unsecured notes | 1,193,362 | | | 6,638 | | | 1,200,000 | |
| $800 Million unsecured term loan | 794,212 | | | 5,788 | | | 800,000 | |
| $2.5 Billion unsecured revolving credit facilities | 575,000 | | | — | | | 575,000 | |
| $ | 8,277,335 | | $ | 55,880 | | $ | 8,333,215 |
| | | | | | | | | | | | | | | | | | | | | | | | |
NON-GAAP RECONCILIATIONS RECONCILIATION OF NET INCOME TO EBITDAre (unaudited) | | | | |
| (Amounts in thousands) | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| For the Three Months Ended | | For the Nine Months Ended September 30, |
| September 30, | | June 30, 2023 | |
| 2023 | | 2022 | | | 2023 | | 2022 |
| Reconciliation of net income to EBITDAre (non-GAAP): | | | | | | | | | |
| Net income | $ | 59,570 | | | $ | 20,112 | | | $ | 62,733 | | | $ | 133,501 | | | $ | 142,390 | |
| Less net loss (income) attributable to noncontrolling interests in consolidated subsidiaries | 13,541 | | | 3,792 | | | 2,781 | | | 26,250 | | | (4,756) | |
| Net income attributable to the Operating Partnership | 73,111 | | | 23,904 | | | 65,514 | | | 159,751 | | | 137,634 | |
| EBITDAre adjustments at share: | | | | | | | | | |
| Depreciation and amortization expense | 125,988 | | | 156,985 | | | 123,192 | | | 372,672 | | | 437,798 | |
| Interest and debt expense | 114,424 | | | 98,358 | | | 118,132 | | | 343,673 | | | 250,473 | |
| Income tax expense | 12,267 | | | 4,151 | | | 4,655 | | | 21,876 | | | 15,491 | |
| Real estate impairment losses | 625 | | | — | | | — | | | 625 | | | — | |
| | | | | | | | | |
| Net (gain) loss on sale of real estate | (56,150) | | | 6 | | | (16,805) | | | (72,955) | | | (28,523) | |
| EBITDAre at share | 270,265 | | | 283,404 | | | 294,688 | | | 825,642 | | | 812,873 | |
| EBITDAre attributable to noncontrolling interests in consolidated subsidiaries | 10,619 | | | 14,449 | | | 19,757 | | | 42,562 | | | 53,649 | |
| EBITDAre (non-GAAP) | $ | 280,884 | | | $ | 297,853 | | | $ | 314,445 | | | $ | 868,204 | | | $ | 866,522 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
NON-GAAP RECONCILIATIONS RECONCILIATION OF EBITDAre TO EBITDAre, AS ADJUSTED (unaudited) | | | |
| (Amounts in thousands) | | | |
| For the Three Months Ended | | For the Nine Months Ended September 30, |
| September 30, | | June 30, 2023 | |
| 2023 | | 2022 | | | 2023 | | 2022 |
| EBITDAre (non-GAAP) | $ | 280,884 | | | $ | 297,853 | | | $ | 314,445 | | | $ | 868,204 | | | $ | 866,522 | |
| | | | | | | | | |
| EBITDAre attributable to noncontrolling interests in consolidated subsidiaries | (10,619) | | | (14,449) | | | (19,757) | | | (42,562) | | | (53,649) | |
| | | | | | | | | |
| Certain expense (income) items that impact EBITDAre: | | | | | | | | | |
| Net gains on disposition of wholly owned and partially owned assets | — | | | — | | | (902) | | | (1,018) | | | — | |
| Gain on sale of 220 CPS condominium units and ancillary amenities | — | | | — | | | — | | | (7,520) | | | (7,030) | |
| Other | 762 | | | 1,477 | | | (5,673) | | | (3,849) | | | 3,450 | |
| Total of certain expense (income) items that impact EBITDAre | 762 | | | 1,477 | | | (6,575) | | | (12,387) | | | (3,580) | |
| | | | | | | | | |
| EBITDAre, as adjusted (non-GAAP) | $ | 271,027 | | | $ | 284,881 | | | $ | 288,113 | | | $ | 813,255 | | | $ | 809,293 | |
