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Investments in Partially Owned Entities
 3 Months Ended
Mar. 31, 2025
Equity Method Investments and Joint Ventures [Abstract]  
Investments in Partially Owned Entities Investments in Partially Owned Entities
Fifth Avenue and Times Square JV
As of March 31, 2025, we own a 51.5% common interest in a joint venture ("Fifth Avenue and Times Square JV") which owns interests in properties located at 640 Fifth Avenue, 655 Fifth Avenue, 666 Fifth Avenue, 689 Fifth Avenue, 697-703 Fifth Avenue, 1535 Broadway and 1540 Broadway (collectively, the "Properties"). The remaining 48.5% common interest in the joint venture is owned by a group of institutional investors (the "Investors"). Our 51.5% common interest in the joint venture represents an effective 51.0% interest in the Properties. The 48.5% common interest in the joint venture owned by the Investors represents an effective 47.2% interest in the Properties. We provide various services to Fifth Avenue and Times Square JV in accordance with management, development, leasing and other agreements.
As of March 31, 2025, we owned $1.486 billion aggregate liquidation preference of preferred equity interests in certain of the properties, which had been reduced from $1.828 billion as of December 31, 2024, following the January 8, 2025, $342,000,000 partial redemption discussed below. The preferred equity has an annual coupon of 4.75% through April 2029 and will then be based on a formulaic rate. It can be redeemed under certain conditions on a tax deferred basis. The preferred equity interests balance was further reduced to $1.079 billion in April 2025 upon the financing of 1535 Broadway, see Note 19 – Subsequent Events for further details.
On January 8, 2025, the Fifth Avenue and Times Square JV completed the sale to UNIQLO of the portion of its U.S. flagship store at 666 Fifth Avenue owned by the joint venture for $350,000,000 and realized net proceeds of $342,000,000. The net proceeds were used to partially redeem Vornado’s preferred equity on the asset. The joint venture continues to own 23,832 square feet of retail space (7,416 square feet at grade) at 666 Fifth Avenue consisting of the Abercrombie & Fitch and Tissot stores. We recognized a financial statement gain of $76,162,000, which is included in “income from partially owned entities” on our consolidated statements of income.
As of March 31, 2025, the carrying amount of our investment in the joint venture was less than our share of the equity in the net assets of the joint venture by approximately $722,891,000, the basis difference primarily resulting from non-cash impairment losses recognized in prior periods. Substantially all of this basis difference was allocated, based on our estimates of the fair values of Fifth Avenue and Times Square JV’s assets and liabilities, to real estate (land and buildings). We are amortizing the basis difference related to the buildings into earnings as a reduction to depreciation expense over their estimated useful lives.
Alexander's, Inc. ("Alexander's") (NYSE: ALX)
As of March 31, 2025, we own 1,654,068 Alexander’s common shares, or approximately 32.4% of Alexander’s common equity. We manage, develop and lease Alexander’s properties pursuant to agreements which expire in March of each year and are automatically renewable. In addition, wholly owned subsidiaries of Vornado provide cleaning, engineering, security, and garage management services to certain Alexander’s properties.
As of March 31, 2025, the market value ("fair value" pursuant to ASC Topic 820, Fair Value Measurements ("ASC 820")) of our investment in Alexander’s, based on Alexander’s March 31, 2025 closing share price of $209.16, was $345,965,000, or $281,288,000 in excess of the carrying amount on our consolidated balance sheets. As of March 31, 2025, the carrying amount of our investment in Alexander’s, excluding amounts owed to us, exceeded our share of the equity in the net assets of Alexander’s by approximately $29,247,000. The majority of this basis difference resulted from the excess of our purchase price for the Alexander’s common stock acquired over the book value of Alexander’s net assets. Substantially all of this basis difference was allocated, based on our estimates of the fair values of Alexander’s assets and liabilities, to real estate (land and buildings). We are amortizing the basis difference related to the buildings into earnings as additional depreciation expense over their estimated useful lives. This depreciation is not material to our share of equity in Alexander’s net income.
5. Investments in Partially Owned Entities - continued
Below is a schedule summarizing our investments in partially owned entities.
(Amounts in thousands)Percentage Ownership as of March 31, 2025Balance as of
March 31, 2025December 31, 2024
Investments:
Fifth Avenue and Times Square JV (see page 20 for details)
51.5%$1,965,973 $2,235,546 
Partially owned office buildings/land(1)
Various185,958 186,190 
Alexander's (see page 20 for details):
32.4%64,677 68,492 
Other investments(2)
Various204,675 201,250 
$2,421,283 $2,691,478 
Investments in partially owned entities included in other liabilities(3):
7 West 34th Street53.0%$(67,656)$(70,552)
85 Tenth Avenue49.9%(20,939)(18,978)
$(88,595)$(89,530)
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(1)Includes interests in 280 Park Avenue, 512 West 22nd Street, 61 Ninth Avenue and others.
(2)Includes interests in Independence Plaza, Sunset Pier 94 Joint Venture (“Pier 94 JV”), Rosslyn Plaza and others.
(3)Our negative basis results from distributions in excess of our investment.
Below is a schedule of income from partially owned entities.
(Amounts in thousands)Percentage Ownership as of March 31, 2025For the Three Months Ended March 31,
20252024
 Our share of net income (loss):
Fifth Avenue and Times Square JV (see page 20 for details):
Equity in net income51.5%$5,837 $9,291 
Return on preferred equity, net of our share of the expense8,543 9,328 
Net gain on sale 76,162 — 
90,542 18,619 
Alexander's (see page 20 for details):
Equity in net income32.4%3,923 5,154 
Management, leasing and development fees1,633 1,180 
5,556 6,334 
Partially owned office buildings(1)
Various(3,622)(10,403)
Other investments(2)
Various4,501 1,729 
$96,977 $16,279 
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(1)Includes interests in 280 Park Avenue, 7 West 34th Street, 512 West 22nd Street, 61 Ninth Avenue, 85 Tenth Avenue and others.
(2)Includes interests in Independence Plaza, Rosslyn Plaza and others.