VORNADO REALTY TRUST (New York Stock Exchange:VNO) filed its Form 10-Q
for the quarter ended June 30, 2014 today and reported:
NET INCOME attributable to common shareholders for the quarter ended
June 30, 2014 was $76.6 million, or $0.41 per diluted share, compared to
$145.9 million, or $0.78 per diluted share for the quarter ended June
30, 2013. Net income for the quarter ended June 30, 2013 includes $65.7
million of net gains on sale of real estate and $3.1 million of real
estate impairment losses. In addition, the quarters ended June 30, 2014
and 2013 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 June 30, 2014 and 2013 was
$137.1 million and $104.2 million, or $0.73 and $0.56 per diluted share,
respectively.
FUNDS FROM OPERATIONS attributable to common shareholders plus assumed
conversions (“FFO”) for the quarter ended June 30, 2014 was $216.5
million, or $1.15 per diluted share, compared to $235.3 million, or
$1.25 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 June 30, 2014 and 2013 was $271.6
million and $239.3 million, or $1.44 and $1.27 per diluted share,
respectively.
|
|
|
|
|
(Amounts in thousands, except per share amounts)
|
|
|
|
For the Three Months Ended June 30,
|
|
|
|
|
2014
|
|
2013
|
FFO (1)
|
|
|
|
$
|
216,547
|
|
$
|
235,348
|
Per Share
|
|
|
|
$
|
1.15
|
|
$
|
1.25
|
|
|
|
|
|
|
|
|
|
Items that affect comparability income (expense):
|
|
|
|
|
|
|
|
|
Toys "R" Us Negative FFO
|
|
|
|
$
|
(51,862)
|
|
$
|
(25,088)
|
Defeasance cost in connection with the refinancing of 909 Third
Avenue
|
|
|
|
|
(5,589)
|
|
|
-
|
Acquisition and transaction related costs
|
|
|
|
|
(4,083)
|
|
|
(3,350)
|
FFO from discontinued operations
|
|
|
|
|
2,200
|
|
|
7,556
|
Net gain on sale of residential condominiums
|
|
|
|
|
905
|
|
|
1,005
|
Income from the mark-to-market of J.C. Penney derivative position
|
|
|
|
|
-
|
|
|
9,065
|
Preferred unit redemptions
|
|
|
|
|
-
|
|
|
8,100
|
Other, net
|
|
|
|
|
-
|
|
|
(1,489)
|
|
|
|
|
|
(58,429)
|
|
|
(4,201)
|
Noncontrolling interests' share of above adjustments
|
|
|
|
|
3,402
|
|
|
245
|
Items that affect comparability, net
|
|
|
|
$
|
(55,027)
|
|
$
|
(3,956)
|
|
|
|
|
|
|
|
|
|
FFO as adjusted for comparability
|
|
|
|
$
|
271,574
|
|
$
|
239,304
|
Per Share
|
|
|
|
$
|
1.44
|
|
$
|
1.27
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) See page 4 for a reconciliation of our net income to FFO for the
three months ended June 30, 2014 and 2013.
|
|
First Half 2014 Results
NET INCOME attributable to common shareholders for the six months ended
June 30, 2014 was $139.0 million, or $0.74 per diluted share, compared
to $377.9 million, or $2.01 per diluted share for the six months ended
June 30, 2013. Net income for the six months ended June 30, 2014 and
2013 include $20.8 million and $8.3 million, respectively, of real
estate impairment losses and the six months ended June 30, 2013 also
includes $268.5 of net gains on sale of real estate. In addition, the
six months ended June 30, 2014 and 2013 include certain other items that
affect comparability, which are listed in the table below. Adjusting net
income attributable to common shareholders for real estate impairment
losses, net gains on sale of real estate, and the items in the table
below, net of amounts attributable to noncontrolling interests, net
income attributable to common shareholders for the six months ended June
30, 2014 and 2013 was $207.4 million and $178.5 million, or $1.10 and
$0.95 per diluted share, respectively.
FFO for the six months ended June 30, 2014 was $463.6 million, or $2.46
per diluted share, compared to $437.2 million, or $2.33 per diluted
share for the prior year’s six months. Adjusting FFO for certain items
that affect comparability which are listed in the table below, FFO for
the six months ended June 30, 2014 and 2013 was $498.6 million and
$450.9 million, or $2.65 and $2.40 per diluted share, respectively.
|
|
(Amounts in thousands, except per share amounts)
|
For the Six Months Ended June 30,
|
|
2014
|
|
2013
|
FFO (1)
|
$
|
463,626
|
|
$
|
437,168
|
Per Share
|
$
|
2.46
|
|
$
|
2.33
|
|
|
|
|
|
|
Items that affect comparability income (expense):
|
|
|
|
|
|
Toys "R" Us Negative FFO (including impairment losses of $75,196 and
|
|
|
|
|
|
$78,542 respectively)
|
$
|
(42,595)
|
|
$
|
(8,404)
|
Net gain on sale of residential condominiums and a land parcel in
2014
|
|
10,540
|
|
|
1,005
|
FFO from discontinued operations, including LNR in 2013
|
|
6,339
|
|
|
35,507
|
Acquisition and transaction related costs
|
|
(5,867)
|
|
|
(3,951)
|
Defeasance cost in connection with the refinancing of 909 Third
Avenue
|
|
(5,589)
|
|
|
-
|
Losses from the mark-to-market, impairment and disposition of
investment in J.C. Penney
|
|
-
|
|
|
(89,762)
|
Stop & Shop litigation settlement income
|
|
-
|
|
|
59,599
|
The Mart reduction-in-force and severance costs
|
|
-
|
|
|
(4,154)
|
Preferred unit and share redemptions
|
|
-
|
|
|
(1,130)
|
Other, net
|
|
-
|
|
|
(3,310)
|
|
|
(37,172)
|
|
|
(14,600)
|
Noncontrolling interests' share of above adjustments
|
|
2,169
|
|
|
851
|
Items that affect comparability, net
|
$
|
(35,003)
|
|
$
|
(13,749)
|
|
|
|
|
|
|
FFO as adjusted for comparability
|
$
|
498,629
|
|
$
|
450,917
|
Per Share
|
$
|
2.65
|
|
$
|
2.40
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) See page 4 for a reconciliation of our net income to FFO for the
six months ended June 30, 2014 and 2013.
|
|
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, as amended, for the year ended December 31, 2013. 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 SIX
MONTHS ENDED
|
JUNE 30, 2014 AND 2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months
|
|
|
For the Six Months
|
|
|
|
|
Ended June 30,
|
|
|
Ended June 30,
|
(Amounts in thousands, except per share amounts)
|
|
|
|
2014
|
|
|
2013
|
|
|
2014
|
|
|
2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
|
|
$
|
666,606
|
|
|
$
|
671,216
|
|
|
$
|
1,327,224
|
|
|
$
|
1,389,929
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from continuing operations
|
|
|
|
$
|
163,535
|
|
|
$
|
113,029
|
|
|
$
|
259,800
|
|
|
$
|
195,194
|
Income from discontinued operations
|
|
|
|
|
2,152
|
|
|
|
69,292
|
|
|
|
4,043
|
|
|
|
276,054
|
Net income
|
|
|
|
|
165,687
|
|
|
|
182,321
|
|
|
|
263,843
|
|
|
|
471,248
|
Less net income attributable to noncontrolling interests in:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated subsidiaries
|
|
|
|
|
(63,975)
|
|
|
|
(14,930)
|
|
|
|
(75,554)
|
|
|
|
(26,216)
|
Operating Partnership
|
|
|
|
|
(4,691)
|
|
|
|
(8,849)
|
|
|
|
(8,539)
|
|
|
|
(22,782)
|
Preferred unit distributions of the Operating Partnership
|
|
|
|
|
(13)
|
|
|
|
(348)
|
|
|
|
(25)
|
|
|
|
(1,134)
|
Net income attributable to Vornado
|
|
|
|
|
97,008
|
|
|
|
158,194
|
|
|
|
179,725
|
|
|
|
421,116
|
Preferred share dividends
|
|
|
|
|
(20,366)
|
|
|
|
(20,368)
|
|
|
|
(40,734)
|
|
|
|
(42,070)
|
Preferred unit and share redemptions
|
|
|
|
|
-
|
|
|
|
8,100
|
|
|
|
-
|
|
|
|
(1,130)
|
Net income attributable to common shareholders
|
|
|
|
$
|
76,642
|
|
|
$
|
145,926
|
|
|
$
|
138,991
|
|
|
$
|
377,916
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income per common share - Basic:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from continuing operations, net
|
|
|
|
$
|
0.40
|
|
|
$
|
0.43
|
|
|
$
|
0.72
|
|
|
$
|
0.63
|
Income from discontinued operations, net
|
|
|
|
|
0.01
|
|
|
|
0.35
|
|
|
|
0.02
|
|
|
|
1.39
|
Net income per common share
|
|
|
|
$
|
0.41
|
|
|
$
|
0.78
|
|
|
$
|
0.74
|
|
|
$
|
2.02
|
Weighted average shares outstanding
|
|
|
|
|
187,527
|
|
|
|
186,931
|
|
|
|
187,418
|
|
|
|
186,842
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income per common share - Diluted:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from continuing operations, net
|
|
|
|
$
|
0.40
|
|
|
$
|
0.43
|
|
|
$
|
0.72
|
|
|
$
|
0.62
|
Income from discontinued operations, net
|
|
|
|
|
0.01
|
|
|
|
0.35
|
|
|
|
0.02
|
|
|
|
1.39
|
Net income per common share
|
|
|
|
$
|
0.41
|
|
|
$
|
0.78
|
|
|
$
|
0.74
|
|
|
$
|
2.01
|
Weighted average shares outstanding
|
|
|
|
|
188,617
|
|
|
|
187,720
|
|
|
|
188,431
|
|
|
|
187,627
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FFO attributable to common shareholders plus assumed conversions
|
|
|
|
$
|
216,547
|
|
|
$
|
235,348
|
|
|
$
|
463,626
|
|
|
$
|
437,168
|
Per diluted share
|
|
|
|
$
|
1.15
|
|
|
$
|
1.25
|
|
|
$
|
2.46
|
|
|
$
|
2.33
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FFO as adjusted for comparability
|
|
|
|
$
|
271,574
|
|
|
$
|
239,304
|
|
|
$
|
498,629
|
|
|
$
|
450,917
|
Per diluted share
|
|
|
|
$
|
1.44
|
|
|
$
|
1.27
|
|
|
$
|
2.65
|
|
|
$
|
2.40
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares used in determining FFO per diluted share
|
|
|
|
|
188,659
|
|
|
|
187,720
|
|
|
|
188,475
|
|
|
|
187,627
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The following table reconciles our net income to FFO:
|
|
(Amounts in thousands)
|
|
|
|
For the Three Months
|
|
|
For the Six Months
|
|
|
|
|
Ended June 30,
|
|
|
Ended June 30,
|
Reconciliation of our net income to FFO:
|
|
|
|
2014
|
|
|
2013
|
|
|
2014
|
|
|
2013
|
Net income attributable to Vornado
|
|
|
|
$
|
97,008
|
|
|
$
|
158,194
|
|
|
$
|
179,725
|
|
|
$
|
421,116
|
Depreciation and amortization of real property
|
|
|
|
|
121,402
|
|
|
|
126,728
|
|
|
|
263,971
|
|
|
|
259,241
|
Net gains on sale of real estate
|
|
|
|
|
-
|
|
|
|
(65,665)
|
|
|
|
-
|
|
|
|
(267,994)
|
Real estate impairment losses
|
|
|
|
|
-
|
|
|
|
2,493
|
|
|
|
20,842
|
|
|
|
4,007
|
Proportionate share of adjustments to equity in net income of
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Toys, to arrive at FFO:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization of real property
|
|
|
|
|
8,814
|
|
|
|
17,480
|
|
|
|
20,229
|
|
|
|
36,805
|
Real estate impairment losses
|
|
|
|
|
-
|
|
|
|
620
|
|
|
|
-
|
|
|
|
4,270
|
Income tax effect of above adjustments
|
|
|
|
|
(3,085)
|
|
|
|
(6,326)
|
|
|
|
(7,080)
|
|
|
|
(14,376)
|
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
|
|
|
|
|
21,312
|
|
|
|
19,486
|
|
|
|
46,583
|
|
|
|
41,316
|
Net gains on sale of real estate
|
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(465)
|
Noncontrolling interests' share of above adjustments
|
|
|
|
|
(8,561)
|
|
|
|
(5,421)
|
|
|
|
(19,960)
|
|
|
|
(3,607)
|
FFO
|
|
|
|
|
236,890
|
|
|
|
247,589
|
|
|
|
504,310
|
|
|
|
480,313
|
Preferred share dividends
|
|
|
|
|
(20,366)
|
|
|
|
(20,368)
|
|
|
|
(40,734)
|
|
|
|
(42,070)
|
Preferred unit and share redemptions
|
|
|
|
|
-
|
|
|
|
8,100
|
|
|
|
-
|
|
|
|
(1,130)
|
FFO attributable to common shareholders
|
|
|
|
|
216,524
|
|
|
|
235,321
|
|
|
|
463,576
|
|
|
|
437,113
|
Convertible preferred share dividends
|
|
|
|
|
23
|
|
|
|
27
|
|
|
|
50
|
|
|
|
55
|
FFO attributable to common shareholders plus assumed conversions
|
|
|
|
$
|
216,547
|
|
|
$
|
235,348
|
|
|
$
|
463,626
|
|
|
$
|
437,168
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 non-GAAP
financial measures used by management, investors and analysts to
facilitate meaningful comparisons of operating performance between
periods and among our peers because it excludes the effect of real
estate depreciation and amortization and net gains on sales, which are
based on historical costs and implicitly assume that the value of real
estate diminishes predictably over time, rather than fluctuating based
on existing market conditions. FFO does not represent cash generated
from operating activities and is not necessarily indicative of cash
available to fund cash requirements and should not be considered as an
alternative to net income as a performance measure or cash flow as a
liquidity measure. FFO may not be comparable to similarly titled
measures employed by other companies. 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 is 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 an audio webcast on Tuesday, August 5, 2014 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 37674574. A telephonic replay of the
conference call will be available from 1:00 p.m. ET on August 5, 2014
through September 4, 2014. To access the replay, please dial
888-843-7419 and enter the passcode 37674574#. 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.
![](http://cts.businesswire.com/ct/CT?id=bwnews&sty=20140804006320r1&sid=ntxv4&distro=nx&lang=en)
Copyright Business Wire 2014