Overview

Vornado Realty Trust is a fully-integrated real estate investment trust (REIT) that conducts business through the Vornado Realty L.P. operating partnership, in which Vornado owns a 91% stake. Vornado competes with other real estate investors and its success depends on economic trends, tenant financial health, capital availability, and other factors.

In Q1 2024, Vornado had a net loss attributable to common shareholders of $9 million ($0.05 per share), compared to net income of $5 million ($0.03 per share) in Q1 2023. Funds from operations (FFO) plus assumed conversions was $104 million ($0.53 per share) in Q1 2024, down from $119 million ($0.61 per share) in Q1 2023. FFO was impacted by certain expense and income items in both periods.

Same store net operating income (NOI) decreased 4.8% at share and 5.0% on a cash basis compared to Q1 2023. By segment, New York same store NOI decreased 4.6% at share and 5.1% on a cash basis; THE MART decreased 10.0% at share and 3.3% on a cash basis; 555 California Street decreased 2.4% at share and 4.4% on a cash basis.

Financings

Vornado executed several financings in Q1 2024:

• Amended $1.2 billion mortgage on 280 Park Ave to extend maturity to 2026-2028 at SOFR + 1.78%

• $75 million refinancing of 435 Seventh Ave at SOFR + 2.10%, swapped to fixed 6.96%

• Extended $915 million credit facility to 2029 at SOFR + 1.20%

Development

Development projects currently underway include:

• PENN 2 renovation ($659M spent of $750M budget)

• PENN District improvements ($53M spent of $100M budget)

• Sunset Pier 94 Studios JV (Vornado share of budget $74M)

• Potential office tower at 350 Park Ave site (Vornado budget $900M if built)

Leasing Activity

Property	Square Feet	Initial Rent	Term
NY Office	250,000	$89.23	11.1 years
NY Retail	33,000	$253.83	3.8 years
THE MART	51,000	$64.02	4.5 years
315 Montgomery	29,000	$67.57	5.4 years

Square Feet and Occupancy

Portfolio	3/31/2024 SF	3/31/2024 Occupancy	12/31/2023 SF	12/31/2023 Occupancy
NY Office	15,909,000	89.3%	16,001,000	90.7%
NY Retail	1,685,000	75.0%	1,684,000	74.9%
NY Residential	745,000	97.5%	745,000	96.8%
Alexander’s	750,000	92.5%	755,000	92.6%
THE MART	3,679,000	77.6%	3,679,000	79.2%
555 California	1,274,000	94.5%	1,274,000	94.5%
Other	1,202,000	87.2%	1,202,000	91.9%
Total	25,244,000		25,340,000

Results of Operations

Revenues decreased $9.5 million or 2.1% compared to Q1 2023, primarily due to:

• $13.7 million lower same store revenues
• Partially offset by $3.3 million more development and redevelopment revenue

Expenses decreased $3.4 million or 0.9% primarily due to:

• $2.5 million lower same store operating expenses
• $1.3 million lower depreciation

Liquidity and Capital Resources

As of March 31, 2024, Vornado had:

• $1.1 billion of cash and restricted cash
• $1.9 billion available on credit facilities, increased to $2.7 billion after an extension
  

Q1 2024 cash flow activities:

• $31 million cash provided by operating activities
• $129 million cash used in investing activities
• $16 million cash used in financing activities

Development expenditures in Q1 2024 included $75 million for PENN 2 and $51 million for real estate additions.

FFO

FFO attributable to common shareholders was $104 million ($0.53 per share) in Q1 2024 compared to $119 million ($0.61 per share) in Q1 2023. The decrease was primarily due to the items impacting comparability listed in the Overview.