NEW YORK, NY--(Marketwired - July 31, 2017) - VORNADO REALTY TRUST (NYSE: VNO) filed its Form 10-Q for the quarter ended June 30, 2017 today and reported:
Quarter Ended June 30, 2017 Financial Results
- NET INCOME attributable to common shareholders for the quarter ended June 30, 2017 was $116.0 million, or $0.61 per diluted share, compared to $220.5 million, or $1.16 per diluted share, for the prior year's quarter. Adjusting net income attributable to common shareholders (non-GAAP) for the items listed in the table on the following page, net income attributable to common shareholders for the quarters ended June 30, 2017 and 2016 was $82.0 million and $66.5 million, or $0.43 and $0.35 per diluted share, respectively.
- FUNDS FROM OPERATIONS attributable to common shareholders plus assumed conversions (non-GAAP) ("FFO") for the quarter ended June 30, 2017 was $257.7 million, or $1.35 per diluted share, compared to $229.4 million, or $1.21 per diluted share, for the prior year's quarter. Adjusting FFO for the items listed in the table on page 3, FFO for the quarters ended June 30, 2017 and 2016 was $237.9 million and $225.0 million, or $1.25 and $1.19 per diluted share, respectively.
Six Months Ended June 30, 2017 Financial Results
- NET INCOME attributable to common shareholders for the six months ended June 30, 2017 was $163.7 million, or $0.86 per diluted share, compared to $106.3 million, or $0.56 per diluted share, for the six months ended June 30, 2016. Adjusting net income attributable to common shareholders for the items listed in the table on the following page, net income attributable to common shareholders for the six months ended June 30, 2017 and 2016 was $138.6 million and $107.2 million, or $0.73 and $0.56 per diluted share, respectively.
- FFO for the six months ended June 30, 2017 was $463.4 million, or $2.43 per diluted share, compared to $433.1 million, or $2.28 per diluted share, for the prior year's six months. Adjusting FFO for the items listed in the table on page 3, FFO for the six months ended June 30, 2017 and 2016 was $453.6 million and $424.0 million, or $2.38 and $2.23 per diluted share, respectively.
Basis of Reporting
The above data for both the three and six month periods ended June 30, 2017 and 2016 includes the results of our Washington, DC segment in (i) net income attributable to common shareholders, (ii) net income attributable to common shareholders, as adjusted, (iii) FFO and (iv) FFO, as adjusted. The Washington, DC segment was spun off from Vornado Realty Trust on July 17, 2017. Beginning in the third quarter of 2017, these results will be shown as discontinued operations and will not be included in net income attributable to common shareholders, as adjusted and FFO, as adjusted for all periods presented.
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, 2016. Such factors include, among others, risks associated with the timing of and costs associated with property improvements, financing commitments and general competitive factors.
(tables to follow)
The following table reconciles our net income to net income, as adjusted (non-GAAP):
(Amounts in thousands, except For the Three Months For the Six Months
per share amounts) Ended Ended
June 30, June 30,
--------------------- ---------------------
2017 2016 2017 2016
---------- ---------- ---------- ----------
Net income attributable to
common shareholders $ 115,972 $ 220,463 $ 163,724 $ 106,300
========= ========= ========= =========
Per diluted share $ 0.61 $ 1.16 $ 0.86 $ 0.56
========= ========= ========= =========
Certain items that impact net
income attributable to common
shareholders:
Net gain on repayment of our
Suffolk Downs JV debt
investments $ 11,373 $ - $ 11,373 $ -
Acquisition and transaction
related costs (6,471) (2,879) (14,476) (7,486)
Net income (loss) from
discontinued operations and
sold properties 663 104 824 (1,325)
(Loss) income from real estate
fund investments, net (304) 7,544 (3,539) 12,855
Net gains on sale of real
estate - 161,721 2,267 161,721
Default interest on Skyline
properties mortgage loan - (2,711) - (2,711)
Skyline properties impairment
loss - - - (160,700)
Other - - 501 714
Our share of partially owned
entities:
Net gain resulting from
Urban Edge Properties
("UE") operating
partnership unit issuances 15,900 - 15,900 -
Net gains on sale of real
estate 15,339 319 17,192 319
Real estate impairment
losses (167) (49) (3,218) (4,402)
Other (67) (25) (67) (25)
--------- --------- --------- ---------
36,266 164,024 26,757 (1,040)
Noncontrolling interests' share
of above adjustments (2,245) (10,104) (1,662) 91
--------- --------- --------- ---------
Total of certain items that
impact net income attributable
to common shareholders, net $ 34,021 $ 153,920 $ 25,095 $ (949)
========= ========= ========= =========
Net income attributable to
common shareholders,
as adjusted (non-GAAP) $ 81,951 $ 66,543 $ 138,629 $ 107,249
========= ========= ========= =========
Per diluted share (non-GAAP) $ 0.43 $ 0.35 $ 0.73 $ 0.56
========= ========= ========= =========
The following table reconciles our FFO (non-GAAP) to FFO, as adjusted (non-GAAP):
(Amounts in thousands, except For the Three Months For the Six Months
per share amounts) Ended Ended
June 30, June 30,
--------------------- ---------------------
2017 2016 2017 2016
---------- ---------- ---------- ----------
FFO (non-GAAP) (1) $ 257,673 $ 229,432 $ 463,422 $ 433,104
========= ========= ========= =========
Per diluted share (non-GAAP) $ 1.35 $ 1.21 $ 2.43 $ 2.28
========= ========= ========= =========
Certain items that impact FFO:
Net gain on repayment of our
Suffolk Downs JV debt
investments $ 11,373 $ - $ 11,373 $ -
Acquisition and transaction
related costs (6,471) (2,879) (14,476) (7,486)
FFO from discontinued
operations and sold
properties 663 2,889 824 6,349
(Loss) income from real estate
fund investments, net (304) 7,544 (3,539) 12,855
Default interest on Skyline
properties mortgage loan - (2,711) - (2,711)
Other - - 501 714
Our share of partially owned
entities:
Net gain resulting from UE
operating partnership unit
issuances 15,900 - 15,900 -
Other (67) (25) (67) (25)
--------- --------- --------- ---------
21,094 4,818 10,516 9,696
Noncontrolling interests' share
of above adjustments (1,306) (400) (653) (594)
--------- --------- --------- ---------
Total of certain items that
impact FFO, net $ 19,788 $ 4,418 $ 9,863 $ 9,102
========= ========= ========= =========
FFO, as adjusted (non-GAAP) $ 237,885 $ 225,014 $ 453,559 $ 424,002
========= ========= ========= =========
Per diluted share (non-GAAP) $ 1.25 $ 1.19 $ 2.38 $ 2.23
========= ========= ========= =========
(1) See page 5 for a reconciliation of our net income to FFO for the three
and six months ended June 30, 2017 and 2016.
VORNADO REALTY TRUST
OPERATING RESULTS FOR THE THREE AND SIX MONTHS ENDED
JUNE 30, 2017 AND 2016
(Amounts in thousands, except For the Three Months For the Six Months
per share amounts) Ended Ended
June 30, June 30,
--------------------- -----------------------
2017 2016 2017 2016
---------- ---------- ----------- -----------
Revenues $ 626,039 $ 621,708 $1,246,887 $1,234,745
========= ========= ========== ==========
Income from continuing
operations $ 146,821 $ 265,907 $ 218,240 $ 173,583
Income from discontinued
operations 663 2,475 3,091 3,191
--------- --------- ---------- ----------
Net income 147,484 268,382 221,331 176,774
Less net income attributable
to noncontrolling interests
in:
Consolidated subsidiaries (7,677) (13,025) (14,414) (22,703)
Operating Partnership (7,706) (14,531) (10,935) (7,044)
--------- --------- ---------- ----------
Net income attributable to
Vornado 132,101 240,826 195,982 147,027
Preferred share dividends (16,129) (20,363) (32,258) (40,727)
--------- --------- ---------- ----------
Net income attributable to
common shareholders $ 115,972 $ 220,463 $ 163,724 $ 106,300
========= ========= ========== ==========
Income per common share -
Basic:
Income from continuing
operations, net $ 0.61 $ 1.16 $ 0.84 $ 0.54
Income from discontinued
operations, net - 0.01 0.02 0.02
--------- --------- ---------- ----------
Net income per common share $ 0.61 $ 1.17 $ 0.86 $ 0.56
========= ========= ========== ==========
Weighted average shares
outstanding 189,395 188,772 189,304 188,715
========= ========= ========== ==========
Income per common share -
Diluted:
Income from continuing
operations, net $ 0.61 $ 1.15 $ 0.84 $ 0.54
Income from discontinued
operations, net - 0.01 0.02 0.02
--------- --------- ---------- ----------
Net income per common share $ 0.61 $ 1.16 $ 0.86 $ 0.56
========= ========= ========== ==========
Weighted average shares
outstanding 190,444 189,885 190,674 190,000
========= ========= ========== ==========
FFO (non-GAAP) $ 257,673 $ 229,432 $ 463,422 $ 433,104
========= ========= ========== ==========
Per diluted share (non-GAAP) $ 1.35 $ 1.21 $ 2.43 $ 2.28
========= ========= ========== ==========
FFO, as adjusted (non-GAAP) $ 237,885 $ 225,014 $ 453,559 $ 424,002
========= ========= ========== ==========
Per diluted share (non-GAAP) $ 1.25 $ 1.19 $ 2.38 $ 2.23
========= ========= ========== ==========
Weighted average shares used
in determining FFO per
diluted share (non-GAAP) 190,444 189,885 190,450 190,043
========= ========= ========== ==========
The following table reconciles net income to FFO:
(Amounts in thousands, except For the Three Months For the Six Months
per share amounts) Ended Ended
June 30, June 30,
--------------------- ---------------------
2017 2016 2017 2016
---------- ---------- ---------- ----------
Net income attributable to
common shareholders $ 115,972 $ 220,463 $ 163,724 $ 106,300
========= ========= ========= =========
Per diluted share $ 0.61 $ 1.16 $ 0.86 $ 0.56
========= ========= ========= =========
FFO adjustments:
Depreciation and amortization of
real property $ 128,527 $ 133,218 $ 258,996 $ 267,339
Net gains on sale of real estate - (161,721) (2,267) (161,721)
Real estate impairment losses - - - 160,700
Proportionate share of
adjustments to equity in net
income (loss) of partially
owned entities to arrive at
FFO:
Depreciation and amortization
of real property 37,682 38,308 76,756 77,354
Net gains on sale of real
estate (15,339) (319) (17,192) (319)
Real estate impairment losses 167 49 3,218 4,402
--------- --------- --------- ---------
151,037 9,535 319,511 347,755
Noncontrolling interests' share
of above adjustments (9,356) (588) (19,873) (21,469)
--------- --------- --------- ---------
FFO adjustments, net $ 141,681 $ 8,947 $ 299,638 $ 326,286
========= ========= ========= =========
FFO attributable to common
shareholders (non-GAAP) $ 257,653 $ 229,410 $ 463,362 $ 432,586
Convertible preferred share
dividends 20 22 60 43
Earnings allocated to Out-
Performance Plan units - - - 475
--------- --------- --------- ---------
FFO attributable to common
shareholders plus assumed
conversions (non-GAAP) $ 257,673 $ 229,432 $ 463,422 $ 433,104
========= ========= ========= =========
Per diluted share (non-GAAP) $ 1.35 $ 1.21 $ 2.43 $ 2.28
========= ========= ========= =========
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 gains from sales of depreciated real estate assets, real estate impairment losses, depreciation and amortization expense from real estate assets 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, as adjusted. 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 are provided on page 3 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 1, 2017 at 10:00 a.m. Eastern Time (ET). The conference call can be accessed by dialing 800-708-4540 (domestic) or 847-619-6397 (international) and indicating to the operator the passcode 45172407. A telephonic replay of the conference call will be available from 1:00 p.m. ET on August 1, 2017 through August 31, 2017. To access the replay, please dial 888-843-7419 and enter the passcode 45172407#. 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.
CONTACT:
Joseph Macnow
(201) 587-1000
