Financial Data and Key Metrics Changes - Comparable FFO for the first quarter was $0.63 per share, an increase of $0.08 compared to $0.55 per share in the same quarter last year, primarily due to the positive ground rent reset at PENN1 and higher NOI from rent commencements [24][16] - Overall GAAP same store NOI increased by 3.5% [16] - The company expects 2025 comparable FFO to be essentially flat compared to last year, down from an earlier estimate of a slight decrease [25] Business Line Data and Key Metrics Changes - The company leased a total of 1,039,000 square feet, with 709,000 square feet in New York office space at starting rents of $95 per square foot and a positive mark-to-market of 6.5% [16][27] - A major lease of 337,000 square feet was completed with Universal Music Group at PENN2, contributing to the overall leasing activity [28] - The occupancy rate in New York decreased to 84.4% from 88.8% due to PENN2 being placed fully into service, but is expected to rise to 87.4% with the completion of the master lease at 770 Broadway [25][26] Market Data and Key Metrics Changes - The New York office leasing market maintained strong momentum, with the strongest quarterly volume since Q4 2019 [25] - Availability in the best ISA market continues to shrink, with only 500,000 square feet of new construction set to deliver in the next several years [26] - The company anticipates strong rental rate growth due to a tightening market and a significant shortage of quality office space [26] Company Strategy and Development Direction - The company is focused on the Penn District as a growth engine, with expectations of significant earnings growth by 2027 from the lease-up of PENN1 and PENN2 [20][25] - The company plans to sprinkle in a not insignificant amount of apartments in the Penn District while primarily remaining an office company [100] - The company is actively looking for new investment opportunities while maintaining a strong cash position for potential acquisitions and debt repayments [44][45] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the market despite current volatility, noting that demand for quality office space remains strong [27][30] - The company believes that the current market dynamics will lead to increased rents and reduced concessions, indicating a shift towards a landlord's market [95] - Management highlighted the importance of maintaining financial strength to capitalize on future opportunities [78] Other Important Information - The company has reduced its debt by $915 million and increased cash balances to $1.4 billion, providing immediate liquidity of $3 billion [15] - The company completed a significant transaction with NYU, which included a prepaid rent payment of $935 million [12][13] Q&A Session Summary Question: Can you break down the 2,000,000 square foot negotiation between PENN1, PENN2, and the balance of the portfolio? - Approximately 50% of the 2,000,000 square foot pipeline is related to PENN1 and PENN2, with strong activity expected at PENN2 [37][38] Question: What is the confidence level around reaching 80% occupancy at PENN2 by the end of the year? - Management remains confident in reaching the target occupancy, with significant activity and rising rents expected [39][40] Question: What are the plans for the cash on the balance sheet? - The cash will be used for debt repayment, maintaining liquidity, and funding new development opportunities [44][45] Question: How do you view the trend of owner-occupiers in the market? - There is a growing trend of retailers and companies wanting to own their spaces in prime locations, which is beneficial for the market [90] Question: What is the outlook for real estate valuations? - The company expects that great assets will command great prices, with a recovery in valuations anticipated [55][56]

Core Insights - Vornado (VNO) reported revenue of $461.58 million for Q1 2025, a year-over-year increase of 5.8%, with an EPS of $0.63 compared to -$0.05 a year ago, exceeding the Zacks Consensus Estimate of $447.91 million by 3.05% and delivering an EPS surprise of 21.15% [1] Financial Performance - Total Property Square Feet in New York: 20,893 Ksq ft, below the average estimate of 21,380.33 Ksq ft [4] - Occupancy in New York (Vornado's share): 83.5%, lower than the average estimate of 86.6% [4] - New York Retail Occupancy: 72.2% compared to the average estimate of 73.2% [4] - New York Office Occupancy: 84.4% versus the average estimate of 85.4% [4] - Total revenues from Other: $85.37 million, exceeding the average estimate of $78.72 million, representing a 9.3% increase year-over-year [4] - Total revenues from New York: $376.21 million, above the average estimate of $369.12 million, reflecting a 5% year-over-year change [4] - Revenue from Fee and Other Income: $56.82 million, slightly below the average estimate of $57.75 million, with a year-over-year increase of 20.7% [4] - Total rental revenues: $404.76 million, surpassing the average estimate of $393.54 million, indicating a 4% year-over-year increase [4] - Fee and Other Income from Management and Leasing Fees: $3.03 million, below the average estimate of $3.13 million, with a 16.1% year-over-year increase [4] - Fee and Other Income from BMS Cleaning Fees: $36.48 million, slightly below the average estimate of $37.84 million, with a 2% year-over-year increase [4] - Fee and Other Income from Other Income: $17.32 million, exceeding the average estimate of $14.63 million, representing a significant year-over-year increase of 98.9% [4] - Total rental revenues from Property Rentals: $348.39 million, above the average estimate of $344.05 million, reflecting a year-over-year change of 3.3% [4] Market Performance - Vornado's shares have returned +12.9% over the past month, outperforming the Zacks S&P 500 composite's +0.4% change [3] - The stock currently holds a Zacks Rank 2 (Buy), indicating potential for outperformance in the near term [3]

Financial Performance - Vornado reported quarterly funds from operations (FFO) of $0.63 per share, exceeding the Zacks Consensus Estimate of $0.52 per share, and up from $0.55 per share a year ago, representing an FFO surprise of 21.15% [1] - The company posted revenues of $461.58 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 3.05%, compared to year-ago revenues of $436.38 million [2] Market Performance - Vornado shares have declined approximately 11.4% since the beginning of the year, while the S&P 500 has decreased by 3.3% [3] - The current consensus FFO estimate for the upcoming quarter is -$0.33 on revenues of $455.06 million, and for the current fiscal year, it is $2.19 on revenues of $1.82 billion [7] Industry Outlook - The REIT and Equity Trust - Other industry, to which Vornado belongs, is currently ranked in the bottom 37% of over 250 Zacks industries, indicating potential challenges ahead [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in estimate revisions, which can impact Vornado's stock performance [5][6]

INDEX | | Page | | --- | --- | | BUSINESS DEVELOPMENTS | 3 | | FINANCIAL INFORMATION | | | Financial Highlights | 4 | | FFO, As Adjusted Bridge | 5 | | Consolidated Balance Sheets | 6 | | Net Income (Loss) Attributable to Common Shareholders (Consolidated and by Segment) | 7 - 8 | | Net Operating Income at Share and Net Operating Income at Share - Cash Basis (by Segment and by Subsegment) | 9 - 10 | | Same Store NOI at Share and Same Store NOI at Share - Cash Basis | 11 | | DEVELOPMENT/REDEVELOPMENT - ACTIV ...

Core Insights - Vornado Realty Trust reported a net income of $86.84 million, or $0.43 per diluted share, for the quarter ended March 31, 2025, a significant recovery from a net loss of $9.03 million, or $0.05 per diluted share, in the same quarter of the previous year [1][38] - The increase in net income is attributed to a $76.16 million net gain from the sale of a portion of the 666 Fifth condominium to UNIQLO and a $17.24 million reversal of previously accrued rent expense related to PENN 1 [1][12] Financial Performance - Funds from Operations (FFO) attributable to common shareholders for the quarter was $135.04 million, or $0.67 per diluted share, compared to $104.13 million, or $0.53 per diluted share, in the prior year [2][38] - Adjusted FFO for the quarter was $126.25 million, or $0.63 per diluted share, up from $108.85 million, or $0.55 per diluted share, year-over-year [2][3] Leasing and Occupancy - Total square feet leased during the quarter was 709,000, with an initial rent of $95.53 per square foot for office space in New York [18] - Occupancy as of March 31, 2025, was 83.5%, with an expected increase to 87.4% after accounting for the master lease with New York University [21] Dispositions and Acquisitions - The company completed the sale of a portion of its U.S. flagship store at 666 Fifth Avenue for $350 million, realizing net proceeds of $342 million [12] - A master lease with NYU for 1,076,000 square feet at 770 Broadway was finalized, including a prepaid lease payment of $935 million and annual payments of approximately $9.3 million [6][7] Ground Rent and Legal Matters - An arbitration panel determined the annual ground rent for the PENN 1 land parcel at $15 million, leading to a reversal of $17.24 million in previously accrued rent expense [8][10] - Ongoing litigation may affect the ground rent, with potential increases to $20.22 million if the fee owner prevails [9] Financing Activities - The company repaid $450 million in senior unsecured notes due January 2025 and completed a $450 million financing for 1535 Broadway, with a fixed interest rate of 6.90% [14][15] - A sustainability margin adjustment was achieved, reducing interest rates on unsecured loans by 0.05% and 0.04% [16] Development Projects - Active development projects include PENN 2, with a rentable area of 1,815,000 square feet and a projected cash yield of 10.2% [27] - Total active development projects have a budget of $975 million, with $850 million expended to date [27]

Financial Performance - Total revenues for Q1 2025 increased to $461,579,000, up 5.3% from $436,375,000 in Q1 2024[18] - Net income attributable to Vornado for Q1 2025 was $102,368,000, compared to $6,495,000 in Q1 2024, representing a significant increase[18] - Rental revenues rose to $404,755,000 in Q1 2025, an increase of 4.3% from $389,278,000 in Q1 2024[18] - Comprehensive income attributable to Vornado for Q1 2025 was $71,687,000, compared to $47,318,000 in Q1 2024, reflecting a year-over-year growth[21] - Net income (loss) per common share for Q1 2025 was $0.45, compared to $(0.05) in Q1 2024, showing a strong recovery[18] - Net income attributable to Vornado Realty L.P. reached $110,257, a significant increase from $5,709 in Q1 2024[33] - Net income attributable to Vornado Realty L.P. for the three months ended March 31, 2025, was $110,257, compared to a net loss of $6,273 for the same period in 2024[40]. - Vornado Realty Trust reported a net income attributable to common shareholders of $86,842,000 for the three months ended March 31, 2025, compared to a net loss of $9,034,000 in the same period of 2024, representing a significant turnaround[102] - Basic earnings per common share for Q1 2025 was $0.45, while diluted earnings per common share was $0.43, compared to a basic and diluted loss per common share of $(0.05) in Q1 2024[102] - Vornado Realty L.P. reported a net income attributable to Class A unitholders of $94,702,000 for Q1 2025, compared to a net loss of $9,849,000 in Q1 2024[106] - Basic earnings per Class A unit for Q1 2025 was $0.45, and diluted earnings per Class A unit was $0.44, compared to a basic and diluted loss per Class A unit of $(0.05) in Q1 2024[106] Cash and Liquidity - Cash and cash equivalents decreased to $568,861,000 as of March 31, 2025, down from $733,947,000 at the end of 2024[16] - The company experienced a net decrease in cash and cash equivalents of $142,731 during the quarter, compared to a decrease of $112,664 in Q1 2024[30] - Total cash and cash equivalents at the end of Q1 2025 were $806,888, a decrease from $1,148,920 at the end of Q1 2024[42] - The balance of cash and cash equivalents as of March 31, 2025, was not explicitly stated but is implied to have improved due to positive cash flows from operations and investing activities[25] Assets and Liabilities - Total liabilities decreased to $9,371,039,000 as of March 31, 2025, from $9,826,739,000 at the end of 2024, indicating improved financial health[16] - The total shareholders' equity increased to $5,314,118,000 as of March 31, 2025, up from $5,158,242,000 at the end of 2024[16] - Total assets as of March 31, 2025, were $15,599,232, a decrease from $15,998,608 at the end of 2024[30] - The total equity as of March 31, 2025, was $5,489,969, an increase from $5,734,168 as of March 31, 2024, indicating a decrease in total equity year-over-year[23] - Total debt as of March 31, 2025, was $5,674,519,000, with a weighted average interest rate of 4.96%[74] - The total carrying amount of debt as of March 31, 2025, was $7,827,807,000, with a fair value of $7,574,000,000[133] Operational Efficiency - Cash flows from operating activities for Q1 2025 were $52,034, up from $31,485 in Q1 2024, reflecting improved operational efficiency[25] - The company reported cash payments for interest of $83,422, up from $69,970 in the previous year, an increase of 19.5%[33] - The company reported a net cash provided by investing activities of $275,501 for Q1 2025, a substantial increase compared to a net cash used of $128,625 in Q1 2024[40] - The company experienced a significant increase in depreciation and amortization expenses, totaling $121,265 in Q1 2025, compared to $114,010 in Q1 2024[40] Investments and Joint Ventures - The company experienced a net loss of $96,977 from equity in net income of partially owned entities in Q1 2025, compared to a loss of $16,279 in Q1 2024, highlighting challenges in joint ventures[25] - The company reported equity in net income of $5,837,000 from the Fifth Avenue and Times Square JV for the three months ended March 31, 2025, compared to $9,291,000 in 2024[66] - The market value of the investment in Alexander's as of March 31, 2025, was $345,965,000, representing an excess of $281,288,000 over the carrying amount[61] - The company’s share of net income from Alexander's for the three months ended March 31, 2025, was $3,923,000, down from $5,154,000 in 2024[66] Financing Activities - The net cash used in financing activities for Q1 2025 was $470,266, compared to $15,524 in Q1 2024, reflecting increased borrowing activity[42] - The company repaid $450,000,000 of senior unsecured notes on their maturity date of January 15, 2025[74] - The aggregate redemption value of redeemable Class A units was $619,406,000 as of March 31, 2025, compared to $708,408,000 as of December 31, 2024[81] Future Outlook - The company anticipates paying a common share dividend in the fourth quarter of 2025, subject to Board approval[92] - The company is currently evaluating the impact of recently issued accounting standards on its consolidated financial statements[48][49]

Core Points - Vornado Realty Trust has completed a master lease with New York University for 1,076,000 square feet at 770 Broadway for a 70-year term [1] - NYU made a prepaid lease payment of $935 million and will pay approximately $9.3 million annually during the lease [1] - NYU has options to purchase the leased premises in 2055 and at the end of the lease in 2095 [1] Financial Implications - Vornado used part of the prepaid lease payment to repay a $700 million mortgage loan on the property [2] - Vornado retains a 92,000 square feet retail condominium leased to Wegmans [2] - The transaction indicates a significant cash inflow for Vornado, enhancing its financial position [2]

Core Points - Alexander's, Inc. will file its quarterly report on Form 10Q for the quarter ended March 31, 2025, with the U.S. Securities and Exchange Commission and will issue its first quarter earnings release on May 5, 2025, before the market opens [1] - Vornado Realty Trust, which manages Alexander's operations, will host a quarterly earnings conference call and audio webcast on May 6, 2025, at 10:00 a.m. Eastern Time [2] - The conference call can be accessed via a domestic and international dialing option, and a live webcast will be available on Vornado's website [3] Company Overview - Alexander's, Inc. is a real estate investment trust (REIT) that owns five properties in New York City [3]

NEW YORK, April 24, 2025 (GLOBE NEWSWIRE) -- Vornado Realty Trust (NYSE:VNO) announced today that it will file its quarterly report on Form 10Q for the quarter ended March 31, 2025 with the U.S. Securities and Exchange Commission and issue its first quarter earnings release on Monday, May 5, 2025, after the New York Stock Exchange has closed. The Company will host a quarterly earnings conference call and an audio webcast on Tuesday, May 6, 2025 at 10:00 a.m. Eastern Time (ET). The conference call can be acc ...

NEW YORK, April 22, 2025 (GLOBE NEWSWIRE) -- Vornado Realty Trust (NYSE:VNO) announced today that the panel appointed to determine the ground rent payable by Vornado’s subsidiary for the PENN 1 land parcel for the 25-year period beginning June 17, 2023 has determined that the annual rent payable during the current 25-year term will be $15 million. Further, litigation is currently pending between the parties in New York County Supreme Court relating to the matter. To date, the court denied the Vornado subsid ...