VORNADO REALTY TRUST (NYSE:VNO) filed its Form 10-Q for the quarter
ended September 30, 2013 today and reported:
Third Quarter 2013 Results
NET INCOME attributable to common shareholders for the quarter ended
September 30, 2013 was $83.0 million, or $0.44 per diluted share,
compared to $232.4 million, or $1.24 per diluted share for the quarter
ended September 30, 2012. Net income for the quarters ended September
30, 2013 and 2012 include $16.1 million and $132.2 million,
respectively, of net gains on sale of real estate, and $2.5 million of
real estate impairment losses in the quarter ended September 30, 2013.
In addition, the quarters ended September 30, 2013 and 2012 include
certain other items that affect comparability, which are listed in the
table below. Adjusting net income attributable to common shareholders
for net gains on sale of real estate, real estate impairment losses and
the items in the table below, net of amounts attributable to
noncontrolling interests, net income attributable to common shareholders
for the quarters ended September 30, 2013 and 2012 was $107.6 million
and $69.1 million, or $0.57 and $0.37 per diluted share, respectively.
FUNDS FROM OPERATIONS attributable to common shareholders plus assumed
conversions (“FFO”) for the quarter ended September 30, 2013 was $210.6
million, or $1.12 per diluted share, compared to $251.0 million, or
$1.34 per diluted share for the prior year’s quarter. Adjusting FFO for
certain items that affect comparability which are listed in the table
below, FFO for the quarters ended September 30, 2013 and 2012 was $238.2
million and $192.2 million, or $1.27 and $1.03 per diluted share,
respectively.
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(Amounts in thousands, except per share amounts)
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For the Three Months Ended September 30,
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2013
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2012
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FFO (1)
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$
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210,627
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$
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251,019
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Per Share
|
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$
|
1.12
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$
|
1.34
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Items that affect comparability income (expense):
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Net gain on sale of marketable securities
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$
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31,741
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$
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-
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FFO from discontinued operations, including LNR and discontinued
operations of Alexander's
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699
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32,454
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Toys "R" Us FFO
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(22,343
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)
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2,403
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(Loss) income from the mark-to-market of J.C. Penney derivative
position
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(20,012
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)
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4,344
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Loss on sale of J.C. Penney common shares
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(18,114
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)
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-
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Acquisition related costs
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(2,818
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)
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(1,070
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)
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After-tax net gain on sale of Canadian Trade Shows
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-
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19,657
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Other, net
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1,511
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5,013
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(29,336
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)
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62,801
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Noncontrolling interests' share of above adjustments
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1,714
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(4,022
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)
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Items that affect comparability, net
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$
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(27,622
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)
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$
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58,779
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FFO as adjusted for comparability
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$
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238,249
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$
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192,240
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Per Share
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$
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1.27
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$
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1.03
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(1) See page 4 for a reconciliation of our net income to FFO for the
three months ended September 30, 2013 and 2012.
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Nine Months 2013 Results
NET INCOME attributable to common shareholders for the nine months ended
September 30, 2013 was $460.9 million, or $2.46 per diluted share,
compared to $486.6 million, or $2.61 per diluted share for the nine
months ended September 30, 2012. Net income for the nine months ended
September 30, 2013 and 2012 include $284.5 million and $205.9 million,
respectively, of net gains on sale of real estate, and $10.8 million and
$23.8 million, respectively, of real estate impairment losses. In
addition, the nine months ended September 30, 2013 and 2012 include
certain other items that affect comparability, which are listed in the
table below. Adjusting net income attributable to common shareholders
for net gains on sale of real estate, real estate impairment losses and
the items in the table below, net of amounts attributable to
noncontrolling interests, net income attributable to common shareholders
for the nine months ended September 30, 2013 and 2012 was $288.1 million
and $185.8 million, or $1.54 and $1.00 per diluted share, respectively.
FFO for the nine months ended September 30, 2013 was $647.8 million, or
$3.45 per diluted share, compared to $767.3 million, or $4.07 per
diluted share for the prior year’s nine months. Adjusting FFO for
certain items that affect comparability which are listed in the table
below, FFO for the nine months ended September 30, 2013 and 2012 was
$695.8 million and $578.8 million, or $3.71 and $3.07 per diluted share,
respectively.
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(Amounts in thousands, except per share amounts)
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For the Nine Months Ended September 30,
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2013
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2012
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FFO (1)
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$
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647,767
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$
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767,347
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Per Share
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$
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3.45
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$
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4.07
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Items that affect comparability income (expense):
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Stop & Shop litigation settlement income
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$
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59,599
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$
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-
|
|
Net gain on sale of marketable securities
|
|
|
|
|
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|
|
31,741
|
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|
3,582
|
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FFO from discontinued operations, including LNR and discontinued
operations of Alexander's
|
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|
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28,903
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|
103,921
|
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After-tax net gain on sale of Canadian Trade Shows
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-
|
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|
19,657
|
|
Loss on sale of J.C. Penney common shares
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|
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|
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(54,914
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)
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|
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-
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Non-cash impairment loss on J.C. Penney common shares
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|
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(39,487
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)
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-
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Loss from the mark-to-market of J.C. Penney derivative position
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(33,487
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)
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(53,343
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)
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Toys "R" Us FFO (after a $78,542 impairment loss in 2013)
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(30,747
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)
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127,031
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Acquisition related costs
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|
|
|
|
|
(6,769
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)
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(4,314
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)
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Preferred unit and share redemptions
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(1,130
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)
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|
11,700
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Other, net
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(4,757
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)
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(7,254
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)
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(51,048
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)
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200,980
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Noncontrolling interests' share of above adjustments
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2,971
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(12,404
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)
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Items that affect comparability, net
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$
|
(48,077
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)
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$
|
188,576
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FFO as adjusted for comparability
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$
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695,844
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$
|
578,771
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Per Share
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$
|
3.71
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$
|
3.07
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(1) See page 4 for a reconciliation of our net income to FFO for the
nine months ended September 30, 2013 and 2012.
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Supplemental Financial Information
Further details regarding results of operations, properties and tenants
can be accessed at the Company’s website www.vno.com.
Vornado Realty Trust is a fully–integrated equity real estate investment
trust.
Certain statements contained herein may constitute “forward-looking
statements” within the meaning of the Private Securities Litigation
Reform Act of 1995. Such forward-looking statements involve known and
unknown risks, uncertainties and other factors which may cause the
actual results, performance or achievements of the Company to be
materially different from any future results, performance or
achievements expressed or implied by such forward-looking statements.
For a discussion of factors that could materially affect the outcome of
our forward-looking statements and our future results and financial
condition, see “Risk Factors” in Part I, Item 1A, of our Annual Report
on Form 10-K, for the year ended December 31, 2012. Such factors
include, among others, risks associated with the timing of and costs
associated with property improvements, financing commitments and general
competitive factors.
|
VORNADO REALTY TRUST
|
OPERATING RESULTS FOR THE THREE AND NINE
MONTHS ENDED
|
SEPTEMBER 30, 2013 AND 2012
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For the Three Months
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For the Nine Months
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Ended September 30,
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Ended September 30,
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(Amounts in thousands, except per share amounts)
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2013
|
|
|
|
2012
|
|
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|
2013
|
|
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|
2012
|
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Revenues
|
|
|
$
|
683,380
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|
|
|
|
$
|
703,052
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|
|
$
|
2,086,378
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|
|
|
|
$
|
2,046,798
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|
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|
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Income from continuing operations
|
|
|
$
|
113,500
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|
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|
$
|
105,712
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|
|
$
|
313,220
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|
|
$
|
355,351
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Income from discontinued operations
|
|
|
|
18,751
|
|
|
|
|
|
158,444
|
|
|
|
|
|
290,279
|
|
|
|
|
|
247,297
|
|
Net income
|
|
|
|
132,251
|
|
|
|
|
|
264,156
|
|
|
|
|
|
603,499
|
|
|
|
|
|
602,648
|
|
Less net income attributable to noncontrolling interests in:
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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Consolidated subsidiaries
|
|
|
|
(23,833
|
)
|
|
|
|
|
(6,610
|
)
|
|
|
|
|
(50,049
|
)
|
|
|
|
|
(30,928
|
)
|
Operating Partnership
|
|
|
|
(5,032
|
)
|
|
|
|
|
(14,837
|
)
|
|
|
|
|
(27,814
|
)
|
|
|
|
|
(31,445
|
)
|
Preferred unit distributions of the Operating Partnership
|
|
|
|
(12
|
)
|
|
|
|
|
(1,403
|
)
|
|
|
|
|
(1,146
|
)
|
|
|
|
|
(9,150
|
)
|
Net income attributable to Vornado
|
|
|
|
103,374
|
|
|
|
|
|
241,306
|
|
|
|
|
|
524,490
|
|
|
|
|
|
531,125
|
|
Preferred share dividends
|
|
|
|
(20,369
|
)
|
|
|
|
|
(20,613
|
)
|
|
|
|
|
(62,439
|
)
|
|
|
|
|
(56,187
|
)
|
Preferred unit and share redemptions
|
|
|
|
-
|
|
|
|
|
|
11,700
|
|
|
|
|
|
(1,130
|
)
|
|
|
|
|
11,700
|
|
Net income attributable to common shareholders
|
|
|
$
|
83,005
|
|
|
|
|
$
|
232,393
|
|
|
|
|
$
|
460,921
|
|
|
|
|
$
|
486,638
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income per common share - Basic:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from continuing operations, net
|
|
|
$
|
0.36
|
|
|
|
|
$
|
0.45
|
|
|
|
|
$
|
1.02
|
|
|
|
|
$
|
1.36
|
|
Income from discontinued operations, net
|
|
|
|
0.08
|
|
|
|
|
|
0.80
|
|
|
|
|
|
1.45
|
|
|
|
|
|
1.26
|
|
Net income per common share
|
|
|
$
|
0.44
|
|
|
|
|
$
|
1.25
|
|
|
|
|
$
|
2.47
|
|
|
|
|
$
|
2.62
|
|
Weighted average shares outstanding
|
|
|
|
186,969
|
|
|
|
|
|
185,924
|
|
|
|
|
|
186,885
|
|
|
|
|
|
185,656
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income per common share - Diluted:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from continuing operations, net
|
|
|
$
|
0.36
|
|
|
|
|
$
|
0.44
|
|
|
|
|
$
|
1.01
|
|
|
|
|
$
|
1.36
|
|
Income from discontinued operations, net
|
|
|
|
0.08
|
|
|
|
|
|
0.80
|
|
|
|
|
|
1.45
|
|
|
|
|
|
1.25
|
|
Net income per common share
|
|
|
$
|
0.44
|
|
|
|
|
$
|
1.24
|
|
|
|
|
$
|
2.46
|
|
|
|
|
$
|
2.61
|
|
Weighted average shares outstanding
|
|
|
|
187,724
|
|
|
|
|
|
186,655
|
|
|
|
|
|
187,679
|
|
|
|
|
|
186,399
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FFO attributable to common shareholders plus assumed conversions
|
|
|
$
|
210,627
|
|
|
|
|
$
|
251,019
|
|
|
|
|
$
|
647,767
|
|
|
|
|
$
|
767,347
|
|
Per diluted share
|
|
|
$
|
1.12
|
|
|
|
|
$
|
1.34
|
|
|
|
|
$
|
3.45
|
|
|
|
|
$
|
4.07
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FFO as adjusted for comparability
|
|
|
$
|
238,249
|
|
|
|
|
$
|
192,240
|
|
|
|
|
$
|
695,844
|
|
|
|
|
$
|
578,771
|
|
Per diluted share
|
|
|
$
|
1.27
|
|
|
|
|
$
|
1.03
|
|
|
|
|
$
|
3.71
|
|
|
|
|
$
|
3.07
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares used in determining FFO per diluted share
|
|
|
|
187,771
|
|
|
|
|
|
186,655
|
|
|
|
|
|
187,679
|
|
|
|
|
|
188,678
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The following table reconciles our net income to FFO:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Amounts in thousands)
|
|
|
For the Three Months
|
|
|
|
|
For the Nine Months
|
|
|
|
Ended September 30,
|
|
|
|
|
Ended September 30,
|
Reconciliation of our net income to FFO:
|
|
|
2013
|
|
|
|
|
2012
|
|
|
|
|
2013
|
|
|
|
|
2012
|
Net income attributable to Vornado
|
|
|
$
|
103,374
|
|
|
|
|
|
$
|
241,306
|
|
|
|
|
|
$
|
524,490
|
|
|
|
|
|
$
|
531,125
|
|
Depreciation and amortization of real property
|
|
|
|
117,901
|
|
|
|
|
|
|
118,717
|
|
|
|
|
|
|
377,142
|
|
|
|
|
|
|
377,338
|
|
Net gains on sale of real estate
|
|
|
|
(16,087
|
)
|
|
|
|
|
|
(131,088
|
)
|
|
|
|
|
|
(284,081
|
)
|
|
|
|
|
|
(203,801
|
)
|
Real estate impairment losses
|
|
|
|
720
|
|
|
|
|
|
|
-
|
|
|
|
|
|
|
4,727
|
|
|
|
|
|
|
13,511
|
|
Proportionate share of adjustments to equity in net income of
Toys, to arrive at FFO:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization of real property
|
|
|
|
16,430
|
|
|
|
|
|
|
16,905
|
|
|
|
|
|
|
53,235
|
|
|
|
|
|
|
50,706
|
|
Real estate impairment losses
|
|
|
|
1,826
|
|
|
|
|
|
|
-
|
|
|
|
|
|
|
6,096
|
|
|
|
|
|
|
8,394
|
|
Income tax effect of above adjustments
|
|
|
|
(6,390
|
)
|
|
|
|
|
|
(5,917
|
)
|
|
|
|
|
|
(20,766
|
)
|
|
|
|
|
|
(20,765
|
)
|
Proportionate share of adjustments to equity in net income of
partially owned entities, excluding Toys, to arrive at FFO:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization of real property
|
|
|
|
20,931
|
|
|
|
|
|
|
22,750
|
|
|
|
|
|
|
62,247
|
|
|
|
|
|
|
65,810
|
|
Net gains on sale of real estate
|
|
|
|
-
|
|
|
|
|
|
|
(1,156
|
)
|
|
|
|
|
|
(465
|
)
|
|
|
|
|
|
(2,051
|
)
|
Real estate impairment losses
|
|
|
|
-
|
|
|
|
|
|
|
-
|
|
|
|
|
|
|
-
|
|
|
|
|
|
|
1,849
|
|
Noncontrolling interests' share of above adjustments
|
|
|
|
(7,736
|
)
|
|
|
|
|
|
(1,613
|
)
|
|
|
|
|
|
(11,343
|
)
|
|
|
|
|
|
(18,197
|
)
|
FFO
|
|
|
|
230,969
|
|
|
|
|
|
|
259,904
|
|
|
|
|
|
|
711,282
|
|
|
|
|
|
|
803,919
|
|
Preferred share dividends
|
|
|
|
(20,369
|
)
|
|
|
|
|
|
(20,613
|
)
|
|
|
|
|
|
(62,439
|
)
|
|
|
|
|
|
(56,187
|
)
|
Preferred unit and share redemptions
|
|
|
|
-
|
|
|
|
|
|
|
11,700
|
|
|
|
|
|
|
(1,130
|
)
|
|
|
|
|
|
11,700
|
|
FFO attributable to common shareholders
|
|
|
|
210,600
|
|
|
|
|
|
|
250,991
|
|
|
|
|
|
|
647,713
|
|
|
|
|
|
|
759,432
|
|
Convertible preferred share dividends
|
|
|
|
27
|
|
|
|
|
|
|
28
|
|
|
|
|
|
|
54
|
|
|
|
|
|
|
85
|
|
Interest on 3.88% exchangeable senior debentures
|
|
|
|
-
|
|
|
|
|
|
|
-
|
|
|
|
|
|
|
-
|
|
|
|
|
|
|
7,830
|
|
FFO attributable to common shareholders plus assumed conversions
|
|
|
$
|
210,627
|
|
|
|
|
|
$
|
251,019
|
|
|
|
|
|
$
|
647,767
|
|
|
|
|
|
$
|
767,347
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 gain from sales of depreciated real estate
assets, real estate impairment losses, depreciation and amortization
expense from real estate assets, extraordinary items and other specified
non-cash items, including the pro rata share of such adjustments of
unconsolidated subsidiaries. FFO and FFO per diluted share are used by
management, investors and analysts to facilitate meaningful comparisons
of operating performance between periods and among our peers because it
excludes the effect of real estate depreciation and amortization and net
gains on sales, which are based on historical costs and implicitly
assume that the value of real estate diminishes predictably over time,
rather than fluctuating based on existing market conditions. FFO does
not represent cash generated from operating activities and is not
necessarily indicative of cash available to fund cash requirements and
should not be considered as an alternative to net income as a
performance measure or cash flow as a liquidity measure. FFO may not be
comparable to similarly titled measures employed by other companies. A
reconciliation of our net income to FFO is provided above. In addition
to FFO, we also disclose FFO before certain items that affect
comparability. Although this non-GAAP measure clearly differs from
NAREIT’s definition of FFO, we believe it provides a meaningful
presentation of operating performance. Reconciliations of FFO to FFO as
adjusted for comparability are provided on page 1 and page 2 of this
press release.
Conference Call and Audio Webcast
As previously announced, the Company will host a quarterly earnings
conference call and audio webcast on November 5, 2013 at 10:00 a.m.
Eastern Time (ET). The conference call can be accessed by dialing
800-708-4539 (domestic) or 847-619-6396 (international) and indicating
to the operator the passcode 35967597. A telephonic replay of the
conference call will be available from 1:00 p.m. ET on November 5, 2013
through December 5, 2013. To access the replay, please dial 888-843-7419
and enter the passcode 35967597#. A live webcast of the conference call
will be available on the Company’s website at www.vno.com
and an online playback of the webcast will be available on the website
for 90 days following the conference call.
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