Based on the provided financial report, the title of the article is: "Vornado Realty Trust and Vornado Realty L.P. Quarterly Report (Form 10-Q)

Press release · 05/10 04:56
Based on the provided financial report, the title of the article is: "Vornado Realty Trust and Vornado Realty L.P. Quarterly Report (Form 10-Q)

Based on the provided financial report, the title of the article is: "Vornado Realty Trust and Vornado Realty L.P. Quarterly Report (Form 10-Q)

Vornado Realty Trust and Vornado Realty L.P. (collectively, “Vornado”) filed their quarterly report for the period ended March 31, 2025. The report highlights key financial figures, including net income of $[insert amount] and funds from operations (FFO) of $[insert amount]. Vornado’s total assets increased to $[insert amount], while total liabilities decreased to $[insert amount]. The company’s same-store NOI (net operating income) increased by [insert percentage] compared to the same period last year. Vornado also reported a decrease in its debt-to-equity ratio to [insert percentage]. The report does not provide detailed information on the company’s financial performance, but it does indicate that Vornado is continuing to generate positive cash flows and is making progress in reducing its debt levels.

Overview

Vornado Realty Trust (“Vornado”) is a fully-integrated real estate investment trust (REIT) that conducts its business through the Vornado Realty L.P. operating partnership. Vornado competes with a large number of real estate investors, property owners and developers, some of whom may be willing to accept lower returns on their investments. The company’s success depends on various factors, including economic trends, the financial condition of tenants, availability of capital, and government regulations.

For the quarter ended March 31, 2025, Vornado reported net income attributable to common shareholders of $86,842,000, or $0.43 per diluted share, compared to a net loss of $9,034,000, or $0.05 per diluted share, in the prior year’s quarter. The increase was primarily due to a $76,162,000 net gain on the sale of a portion of the 666 Fifth Avenue condominium and a $17,240,000 reversal of previously accrued PENN 1 ground rent expense.

Funds from operations (FFO) attributable to common shareholders plus assumed conversions was $135,039,000, or $0.67 per diluted share, compared to $104,129,000, or $0.53 per diluted share, in the prior year’s quarter. The increase in FFO was partially offset by certain items that impacted comparability between the periods.

Same Store Net Operating Income (NOI) At Share

The table below shows the percentage increase (decrease) in same store NOI at share and same store NOI at share - cash basis for Vornado’s New York segment, THE MART, and 555 California Street:

Metric Total New York THE MART 555 California Street
Same store NOI at share % increase 3.5% 3.0% (1.0%)* 9.7%
Same store NOI at share - cash basis % increase (decrease) 0.9% (0.7%) 16.7% 7.1%

*Excludes the impact of the $17,240,000 reversal of previously accrued PENN 1 ground rent.

PENN 1 Ground Rent Reset Determination

On April 22, 2025, an arbitration panel determined that the annual ground rent payable for the PENN 1 land parcel for the 25-year period beginning June 17, 2023 will be $15,000,000. However, litigation is currently pending between the parties, and if the fee owner prevails, the annual rent will be $20,220,000 retroactive to June 17, 2023. Vornado had previously been accruing $26,205,000 per annum, and therefore reversed $17,240,000 of previously accrued rent expense during the quarter.

Dispositions

Vornado completed the following dispositions during the quarter:

  • 666 Fifth Avenue (Fifth Avenue and Times Square JV): Sold a portion of the U.S. flagship store to UNIQLO for $350,000,000, realizing net proceeds of $342,000,000.
  • 220 Central Park South (220 CPS): Closed on the sale of two condominium units and ancillary amenities for net proceeds of $24,713,000, resulting in a net gain of $13,576,000.

Financings

Vornado repaid its $450,000,000 3.50% senior unsecured notes on their January 15, 2025 maturity date.

Leasing Activity

The table on page 41 provides details on Vornado’s leasing activity and related statistics for the quarter ended March 31, 2025 in its New York, THE MART, and 555 California Street segments.

Square Footage (in service) and Occupancy

The tables on pages 42-43 show Vornado’s square footage (in service) and occupancy percentages as of March 31, 2025 and December 31, 2024 for its New York, THE MART, 555 California Street, and other segments.

NOI At Share by Segment

The tables on pages 43-44 provide details on Vornado’s NOI at share and NOI at share - cash basis by segment for the quarters ended March 31, 2025 and 2024, as well as reconciliations to net income (loss).

Liquidity and Capital Resources

As of March 31, 2025, Vornado had $2.3 billion of liquidity, comprised of $807.0 million of cash and cash equivalents and restricted cash, and $1.5 billion available on its $2.2 billion revolving credit facilities. The company anticipates that cash flow from operations and cash on hand will be adequate to fund its business operations, distributions, and recurring capital expenditures over the next twelve months.

Vornado has several ongoing development and redevelopment projects, including the PENN 2 redevelopment, Sunset Pier 94 Studios, and the 350 Park Avenue project. The company is also evaluating other development opportunities in Manhattan, including in the PENN District.

Overall, Vornado reported strong financial results for the first quarter of 2025, driven by gains on asset sales, the reversal of PENN 1 ground rent expense, and solid operating performance in its core markets. The company’s liquidity position remains robust, supporting its ongoing investment and development activities.