Vornado Realty Trust (NYSE:VNO) Q1 2024 Earnings Call Transcript May 7, 2024 10:00 AM ET Company Participants Steven Borenstein - EVP and Corporation Counsel Steven Roth - Chairman and CEO Michael Franco - Chairman and CFO Glen Weiss - EVP-Office Leasing & Co-Head of Real Estate Conference Call Participants Steve Sakwa - Evercore ISI John Kim - BMO Capital Markets Michael Griffin - Citi Floris van Dijkum - Compass Point Dylan Burzinski - Green Street Alexander Goldfarb - Piper Sandler Michael Lewis - Truist ...

INDEX | | Page | | --- | --- | | BUSINESS DEVELOPMENTS | 3 | | FINANCIAL INFORMATION | | | Financial Highlights | 4 | | FFO, As Adjusted Bridge | 5 | | Consolidated Balance Sheets | 6 | | Net (Loss) Income 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 ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark one) QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended: March 31, 2024 Or TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from: to Commission File Number: 001-11954 (Vornado Realty Trust) Commission File Number: 001-34482 (Vornado Realty L.P.) Vornado Realty Trust Vornado Realty L.P. (Ex ...

Vornado Realty Trust (NYSE:VNO) Q4 2023 Earnings Conference Call February 13, 2024 10:00 AM ET Company Participants Steve Borenstein - Senior Vice President & Corporation Counsel Steven Roth - Chairman & Chief Executive Officer Michael Franco - President & Chief Financial Officer Glen Weiss - Executive Vice President-Office Leasing & Co-Head of Real Estate Conference Call Participants Steve Sakwa - Evercore ISI Michael Griffin - Citi Camille Bonnel - Bank of America John Kim - BMO Capital Markets Dylan Burz ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Fiscal Year Ended: December 31, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-11954 (Vornado Realty Trust) Commission File Number: 001-34482 (Vornado Realty L.P.) Vornado Realty Trust Vornado Realty L.P. (Exact name of r ...

Financial Data and Key Metrics Changes - Third quarter comparable FFO as adjusted was $0.66 per share, down from $0.81 in the same quarter last year, a decrease of $0.15 driven by various factors including a one-time real estate tax accrual adjustment and higher net interest expenses [14][15][16] - New York office same-store cash NOI for the quarter increased by 3%, while the overall New York business was up 2.1% [15] Business Line Data and Key Metrics Changes - The company completed 17 leases totaling 236,000 square feet at average starting rents of over $93 per square foot during the third quarter [17] - The leasing volume in Manhattan was 6.5 million square feet for the quarter, with the fire sector leading at 31% of activity [16] - Retail leasing activity showed a noticeable pickup, with eight leases totaling 29,000 square feet signed at a positive 33.5% cash mark-to-market [22] Market Data and Key Metrics Changes - The financing markets remain challenging, particularly for office properties, due to volatility from the Federal Reserve's rate increases [23] - The company reported a strong liquidity position of $3.2 billion, including $1.3 billion in cash and restricted cash [24] Company Strategy and Development Direction - The company is focused on leasing PENN 1 and PENN 2, with significant tenant interest expected as construction nears completion [9][10] - The company believes in the long-term potential of American cities, particularly New York, and anticipates that the current challenges will lay the groundwork for future recovery in fundamentals and values [8][12] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the resilience of the economy despite challenges, noting that the real estate capital markets are currently "frozen" [7] - The company expects to maintain its outlook for comparable FFO for 2023, despite additional G&A expenses related to share-based awards [15] Other Important Information - The company has a strong pipeline of future leases totaling 1.8 million square feet, with 750,000 square feet expected to close in the fourth quarter [20] - The company received GRESB's Green Star distinction for the 11th time, highlighting its commitment to sustainability [24] Q&A Session Summary Question: Can you expound on the New York City leasing pipeline? - The pipeline is focused on current vacancies, particularly in PENN 1 and PENN 2, with strong activity expected as the projects open [26][27] Question: What are your thoughts on the dividend and share repurchase program? - The company expects FFO to be about $2.55 for the year, with a dividend payout expected to be between $0.20 and $0.30 for the fourth quarter [30][32] Question: How are you managing refinancing in the current debt market? - The company is actively discussing refinancing options with lenders, recognizing the challenges in the current market [33][35] Question: Can you provide an update on sublease activity across the portfolio? - Sublease activity in New York has remained stable, with some spaces fully leased, while Chicago has seen more sublease space available [46] Question: What is the current status of leasing activity compared to previous quarters? - The decrease in leasing activity was attributed to timing rather than deals falling apart, with expectations to reach 2 million square feet by year-end [71] Question: What are the plans for generating cash flow from the Hotel Pennsylvania site? - The company is exploring temporary uses for the site to generate cash flow until a long-term plan is developed [76] Question: Can you clarify the company's approach to capital allocation moving forward? - The company plans to be opportunistic in selling or recapitalizing assets, focusing on accretive pricing [67][68]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark one) QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended: September 30, 2023 Or TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from: to Commission File Number: 001-11954 (Vornado Realty Trust) Commission File Number: 001-34482 (Vornado Realty L.P.) Vornado Realty Trust Vornado Realty L.P. ...

Financial Data and Key Metrics Changes - Second quarter comparable FFO as adjusted was $0.72 per share, down from $0.83 in the same quarter last year, a decrease of 13.3% primarily due to higher net interest expense from increased rates [13][14] - The principal difference in numbers this year compared to last year is attributed to the rise in interest rates, with the overall economy being more resilient than expected [9][10] - The company expects 2023 comparable FFO to be down from 2022, with a known impact of certain items totaling a $0.55 reduction primarily from rising interest rates [14][15] Business Line Data and Key Metrics Changes - The New York cash same-store office business was up 3%, and the overall New York business was up 2.7% [14] - During the second quarter, the company completed 19 leases totaling 279,000 square feet, with starting rents at $91.57 per square foot, reflecting a positive mark-to-market of 5.7% cash and 9.9% GAAP [17] - The average starting rents for the first six months of the year were $99 per square foot, indicating a trend upward in rental rates [17] Market Data and Key Metrics Changes - Leasing activity was led by strong demand from traditional industries, particularly financial services and law firms, accounting for almost 40% of the 5.2 million square feet leased in the quarter [16] - Midtown accounted for 70% of this quarter's leasing activity, with 75% of Midtown leasing occurring in Class A properties, reinforcing the flight to quality theme [16] - Actual vacancy in competitive pockets like Park Avenue and Sixth Avenue is below 10%, with rents moving up nicely [20] Company Strategy and Development Direction - The company aims to conserve cash, protect its balance sheet, and raise cash by selectively selling assets, reducing debt, and buying back stock [10] - The Penn District continues to be a focal point for growth, with significant potential for shareholder value as projects come online [10][19] - The company remains focused on maintaining balance sheet strength, with current liquidity at $3.2 billion, including $1.3 billion in cash and restricted cash [27] Management's Comments on Operating Environment and Future Outlook - Management believes that the office sector will recover, similar to the resurgence of malls, despite current challenges [8] - The financing markets remain highly constrained, particularly for office, but there is more appetite for retail [23] - Management is optimistic about the leasing pipeline, with 580,000 square feet of leases in negotiation and an additional 1.2 million square feet in the pipeline [21] Other Important Information - The company has been active in selling assets, recently announcing the sale of four small retail assets in Manhattan [26] - The restructuring of the St. Regis retail loan was completed, adding five years of term [24] - The new compensation plan was implemented to incentivize retention and performance during challenging times [45][49] Q&A Session Summary Question: Can you elaborate on the leasing pipeline and how much relates to PENN2? - Approximately 40% of the leasing activity was at PENN1, with a strong pipeline of nearly 600,000 square feet of leases in negotiation [30] Question: What is the updated thought on the dividend and the pace of buybacks? - The company is being opportunistic about selling assets and will evaluate the dividend based on cash versus stock mix at the end of the year [34] Question: Can you quantify the mark-to-market opportunity for expiries through 2024? - It is difficult to predict mark-to-market values, but there is positive momentum in key submarkets with sub 10% vacancy rates [38] Question: What are the expectations for NOI in retail and office for the second half of the year? - The company is not providing specific guidance for the second half, indicating it is premature to predict [57] Question: How does the company view leasing activity in San Francisco and Chicago? - San Francisco has been successful with 555 Cal, while Chicago is experiencing a lack of tenant demand, particularly for larger spaces [52] Question: Are there plans to sell a joint venture stake in the Farley building? - The company is not commenting on future plans for the Farley building but acknowledges it as a strong asset [59] Question: What is the recurring versus one-time impact on the $0.72 FFO in the quarter? - The significant one-time impact was from a tenant termination at 345 Montgomery, totaling $0.07, with other minor adjustments [62]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark one) QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended: June 30, 2023 Or TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from: to Commission File Number: 001-11954 (Vornado Realty Trust) Commission File Number: 001-34482 (Vornado Realty L.P.) Vornado Realty Trust Vornado Realty L.P. (Exa ...

Vornado Realty Trust (NYSE:VNO) Q1 2023 Earnings Conference Call May 2, 2023 10:00 AM ET Company Participants Steven Borenstein - SVP and Corporation Counsel Steven Roth - CEO Michael Franco - President and CFO Glen Weiss - EVP, Office Leasing and Co-Head of Real Estate Conference Call Participants Steve Sakwa - Evercore Alexander Goldfarb - Piper Sandler Michael Griffin - Citi John Kim - BMO Capital Camille Bonnel - Bank of America Daniel Ismail - Green Street Derek Johnston - Deutsche Bank Vikram Malhotra ...