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Vornado Announces First Quarter 2025 Financial Results

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Vornado AG真人官方ty Trust (NYSE: VNO) reported strong Q1 2025 financial results with net income of $86.8M ($0.43 per share), compared to a net loss of $9M in Q1 2024. The improvement was driven by a $76.2M gain from selling part of 666 Fifth to UNIQLO and a $17.2M reversal of PENN 1 rent expense. FFO reached $135M ($0.67 per share), up from $104.1M ($0.53 per share) year-over-year. Key developments include: - NYU master lease at 770 Broadway for 1.07M sq ft, with $935M prepaid lease payment - Sale of UNIQLO portion at 666 Fifth Avenue for $350M - New $450M financing at 1535 Broadway at 6.90% interest - Total occupancy at 83.5% in New York portfolio - Leasing activity showed positive rent spreads with 9.5% GAAP increase for office space

Vornado AG真人官方ty Trust (NYSE: VNO) ha riportato solidi risultati finanziari nel primo trimestre 2025 con un utile netto di 86,8 milioni di dollari (0,43 dollari per azione), rispetto a una perdita netta di 9 milioni nel primo trimestre 2024. Il miglioramento 猫 stato favorito da un guadagno di 76,2 milioni di dollari derivante dalla vendita di una parte del 666 Fifth a UNIQLO e da una rettifica di 17,2 milioni di dollari sulle spese di affitto di PENN 1. L'FFO ha raggiunto 135 milioni di dollari (0,67 dollari per azione), in aumento rispetto ai 104,1 milioni (0,53 dollari per azione) dell'anno precedente. Sviluppi chiave includono: - Contratto di locazione master con NYU a 770 Broadway per 1,07 milioni di piedi quadrati, con un pagamento anticipato di 935 milioni di dollari - Vendita della porzione UNIQLO a 666 Fifth Avenue per 350 milioni di dollari - Nuovo finanziamento da 450 milioni di dollari a 1535 Broadway con interesse al 6,90% - Occupazione totale al 83,5% nel portafoglio di New York - L'attivit脿 di locazione ha mostrato incrementi positivi degli affitti con un aumento GAAP del 9,5% per gli spazi ufficio
Vornado AG真人官方ty Trust (NYSE: VNO) report贸 s贸lidos resultados financieros en el primer trimestre de 2025 con un ingreso neto de 86,8 millones de d贸lares (0,43 d贸lares por acci贸n), en comparaci贸n con una p茅rdida neta de 9 millones en el primer trimestre de 2024. La mejora se debi贸 a una ganancia de 76,2 millones de d贸lares por la venta de parte del 666 Fifth a UNIQLO y a una reversi贸n de 17,2 millones de d贸lares en gastos de renta de PENN 1. El FFO alcanz贸 135 millones de d贸lares (0,67 d贸lares por acci贸n), frente a 104,1 millones (0,53 d贸lares por acci贸n) del a帽o anterior. Desarrollos clave incluyen: - Contrato de arrendamiento maestro con NYU en 770 Broadway por 1,07 millones de pies cuadrados, con un pago anticipado de 935 millones de d贸lares - Venta de la porci贸n de UNIQLO en 666 Fifth Avenue por 350 millones de d贸lares - Nuevo financiamiento de 450 millones de d贸lares en 1535 Broadway con una tasa de inter茅s del 6,90% - Ocupaci贸n total del 83,5% en la cartera de Nueva York - La actividad de arrendamiento mostr贸 aumentos positivos en las rentas con un incremento GAAP del 9,5% para espacios de oficina
Vornado AG真人官方ty Trust (NYSE: VNO)電� 2025雲� 1攵勱赴鞐� 靾滌澊鞚� 8,680毵� 雼煬(欤茧嫻 0.43雼煬)毳� 旮半頃橂┌ 2024雲� 1攵勱赴 900毵� 雼煬 靾滌啇鞁れ棎靹� 韥矊 臧滌劆霅� 鞁れ爜鞚� 氤搓碃頄堨姷雼堧嫟. 鞚措煬頃� 臧滌劆鞚 666 Fifth鞚� 鞚茧秬毳� UNIQLO鞐� 毵り皝頃橃棳 7,620毵� 雼煬鞚� 鞚挫澋瓿� PENN 1 鞛勲寑耄� 牍勳毄 1,720毵� 雼煬 頇橃瀰鞐� 頌橃瀰鞚 瓴冹瀰雼堧嫟. FFO電� 鞝勲厔 霃欔赴 雽牍� 1鞏� 3500毵� 雼煬(欤茧嫻 0.67雼煬)搿�, 1鞏� 410毵� 雼煬(欤茧嫻 0.53雼煬)鞐愳劀 歃濌皜頄堨姷雼堧嫟. 欤检殧 雮挫毄鞚 雼れ潓瓿� 臧欖姷雼堧嫟: - 770 Broadway鞐� 鞙勳箻頃� 1.07氚彪 韽夒癌頂柬姼 攴滊鞚� NYU 毵堨姢韯� 毽姢, 9鞏� 3500毵� 雼煬 靹犽秷 鞛勲寑耄� - 666 Fifth Avenue UNIQLO 甑棴 毵り皝, 3鞏� 5000毵� 雼煬 - 1535 Broadway鞐愳劀 6.90% 鞚挫瀽鞙 4鞏� 5觳滊 雼煬 鞁犼窚 旮堨湹 臁半嫭 - 雺挫殨 韽姼韽措Μ鞓� 齑� 鞛勲寑鞙� 83.5% - 鞛勲寑 頇滊彊鞐愳劀 靷鞁� 瓿店皠鞐� 雽頃� 9.5% GAAP 鞛勲寑耄� 靸侅姽鞚� 旮半
Vornado AG真人官方ty Trust (NYSE : VNO) a annonc茅 de solides r茅sultats financiers pour le premier trimestre 2025 avec un revenu net de 86,8 millions de dollars (0,43 dollar par action), contre une perte nette de 9 millions au premier trimestre 2024. Cette am茅lioration a 茅t茅 port茅e par un gain de 76,2 millions de dollars suite 脿 la vente d'une partie du 666 Fifth 脿 UNIQLO et une reprise de 17,2 millions de dollars des charges locatives de PENN 1. Le FFO a atteint 135 millions de dollars (0,67 dollar par action), en hausse par rapport 脿 104,1 millions (0,53 dollar par action) l'ann茅e pr茅c茅dente. Les faits marquants incluent : - Bail principal avec NYU au 770 Broadway pour 1,07 million de pieds carr茅s, avec un paiement de loyer pr茅pay茅 de 935 millions de dollars - Vente de la partie UNIQLO au 666 Fifth Avenue pour 350 millions de dollars - Nouveau financement de 450 millions de dollars au 1535 Broadway avec un taux d'int茅r锚t de 6,90 % - Taux d'occupation total de 83,5 % dans le portefeuille new-yorkais - L'activit茅 locative a montr茅 des augmentations positives des loyers avec une hausse GAAP de 9,5 % pour les espaces de bureaux
Vornado AG真人官方ty Trust (NYSE: VNO) meldete starke Finanzergebnisse f眉r das erste Quartal 2025 mit einem Nettoeinkommen von 86,8 Mio. USD (0,43 USD je Aktie), verglichen mit einem Nettoverlust von 9 Mio. USD im ersten Quartal 2024. Die Verbesserung wurde durch einen Gewinn von 76,2 Mio. USD aus dem Verkauf eines Teils von 666 Fifth an UNIQLO und eine R眉ckstellung von 17,2 Mio. USD f眉r PENN 1 Mietkosten verursacht. Das FFO erreichte 135 Mio. USD (0,67 USD je Aktie), gegen眉ber 104,1 Mio. USD (0,53 USD je Aktie) im Vorjahreszeitraum. Wesentliche Entwicklungen umfassen: - NYU-Mastermietvertrag f眉r 770 Broadway mit 1,07 Mio. Quadratfu脽 und einer Vorauszahlung von 935 Mio. USD - Verkauf des UNIQLO-Anteils am 666 Fifth Avenue f眉r 350 Mio. USD - Neue Finanzierung 眉ber 450 Mio. USD f眉r 1535 Broadway mit 6,90 % Zinsen - Gesamtbelegung von 83,5 % im New Yorker Portfolio - Die Vermietungsaktivit盲t zeigte positive Mietsteigerungen mit einem GAAP-Anstieg von 9,5 % f眉r B眉rofl盲chen
Positive
  • Net income increased significantly to $86.8M from a $9M loss year-over-year
  • Major $935M prepaid lease deal with NYU for 770 Broadway
  • $350M sale to UNIQLO generated $76.2M gain
  • FFO per share increased 26.4% to $0.67 from $0.53 year-over-year
  • Positive rent spreads with 9.5% GAAP increase for office space
Negative
  • Overall occupancy remains challenged at 83.5% in New York portfolio
  • Lower interest income impacted results by $5.6M
  • High tenant improvement costs at $168.88 per square foot for office space
  • Retail occupancy particularly weak at 72.2%

Insights

Vornado's Q1 shows significant profit improvement driven by one-time gains and a strategic 70-year NYU lease, with modest FFO growth.

Vornado's Q1 2025 performance shows a dramatic improvement in net income to $86.8 million ($0.43/share) from a net loss of $9.0 million in Q1 2024. However, this transformation stems largely from two one-time events: a $76.2 million gain from selling part of 666 Fifth Avenue to UNIQLO and a $17.2 million reversal of previously accrued PENN 1 rent expenses.

Looking at the more reliable FFO metric adjusted for non-recurring items, Vornado posted $126.2 million ($0.63/share), representing a 14.5% year-over-year increase from $0.55/share. This improvement reflects both the positive impact of the PENN 1 ground rent reset determination and modest operational gains.

The 70-year master lease with NYU at 770 Broadway stands out as a transformative transaction. The deal brought in an upfront payment of $935 million plus annual payments of approximately $9.3 million, enabling Vornado to repay a $700 million mortgage loan. This significantly enhances the company's liquidity position while securing a very long-term income stream.

Occupancy metrics present a mixed picture: New York office space stands at 84.4% (improving to 87.4% with the NYU lease), retail space lags at 72.2%, while 555 California Street shows strength at 92.3%. The company's leasing activity demonstrates some pricing power, with positive rent spreads across most segments.

Same-store NOI increased 3.5% year-over-year, with particularly strong performance at THE MART (9.7%) and 555 California Street (5.2%), indicating solid underlying property performance despite challenges in certain market segments.

NEW YORK, May 05, 2025 (GLOBE NEWSWIRE) --

Vornado AG真人官方ty Trust (NYSE: VNO) reported today:

Quarter Ended March 31, 2025 Financial Results

NET INCOME attributable to common shareholders for the quarter ended March 31, 2025 was $86,842,000, or $0.43 per diluted share, compared to a net loss attributable to common shareholders of $9,034,000, or $0.05 per diluted share, for the prior year's quarter. The increase is primarily due to the $76,162,000 net gain recognized upon the disposition of a portion of the 666 Fifth condominium to UNIQLO, and the $17,240,000 reversal of PENN 1 rent expense previously accrued following the April 2025 rent reset determination.

FUNDS FROM OPERATIONS ("FFO") attributable to common shareholders plus assumed conversions (non-GAAP) for the quarter ended March 31, 2025 was $135,039,000, or $0.67 per diluted share, compared to $104,129,000, or $0.53 per diluted share, for the prior year's quarter.听Adjusting for the items that impact period-to-period comparability listed in the table below, FFO attributable to common shareholders plus assumed conversions, as adjusted (non-GAAP) for the quarter ended March 31, 2025 was $126,245,000, or $0.63 per diluted share, and $108,847,000, or $0.55 per diluted share, for the prior year's quarter.

The following table reconciles FFO attributable to common shareholders plus assumed conversions (non-GAAP) to FFO attributable to common shareholders plus assumed conversions, as adjusted (non-GAAP):

(Amounts in thousands, except per share amounts)For the Three Months Ended
March 31,
20252024
FFO attributable to common shareholders plus assumed conversions (non-GAAP)(1)$135,039$104,129
Per diluted share (non-GAAP)$0.67$0.53
Certain (income) expense items that impact FFO attributable to common shareholders plus assumed conversions:
After-tax net gain on sale of 220 Central Park South ("220 CPS") condominium units and ancillary amenities$(11,028)$鈥�
Deferred tax liability on our investment in the Farley Building (held through a taxable REIT subsidiary)3,2054,134
Other(1,735)1,009
(9,558)5,143
Noncontrolling interests' share of above adjustments on a dilutive basis764(425)
Total of certain (income) expense items that impact FFO attributable to common shareholders plus assumed conversions, net$(8,794)$4,718
Per diluted share (non-GAAP)$(0.04)$0.02
FFO attributable to common shareholders plus assumed conversions, as adjusted (non-GAAP)$126,245$108,847
Per diluted share (non-GAAP)$0.63$0.55


__________________________________________
(1)See page 9 for a reconciliation of net income (loss) attributable to common shareholders to FFO attributable to common shareholders plus assumed conversions (non-GAAP) for the three months ended March 31, 2025 and 2024.


FFO, as Adjusted Bridge - Q1 2025 vs. Q1 2024

The following table bridges our FFO attributable to common shareholders plus assumed conversions, as adjusted (non-GAAP) for the three months ended March 31, 2024 to FFO attributable to common shareholders plus assumed conversions, as adjusted (non-GAAP) for the three months ended March 31, 2025:

(Amounts in millions, except per share amounts)FFO, as Adjusted
AmountPer Share
FFO attributable to common shareholders plus assumed conversions, as adjusted (non-GAAP) for the three months ended March 31, 2024$108.8$0.55
Increase / (decrease) in FFO, as adjusted due to:
Impact of PENN 1 ground rent reset determination (including a $17.2 reversal of rent expense that was accrued in prior periods)20.0
Lower interest income(5.6)
Variable businesses (primarily signage)2.4
Rent commencements, net of lease expirations and other tenant related items2.1
Other, net(0.5)
18.4
Noncontrolling interests' share of above items and impact of assumed conversions of convertible securities(1.0)
Net increase17.40.08
FFO attributable to common shareholders plus assumed conversions, as adjusted (non-GAAP) for the three months ended March 31, 2025$126.2$0.63


See page 9 for a reconciliation of net income (loss) attributable to common shareholders to FFO attributable to common shareholders plus assumed conversions (non-GAAP) for the three months ended March 31, 2025 and 2024. Reconciliations of FFO attributable to common shareholders plus assumed conversions to FFO attributable to common shareholders plus assumed conversions, as adjusted are provided on the previous page.

770 Broadway

On May 5, 2025, we completed a master lease with New York University (鈥淣YU鈥�) to lease 1,076,000 square feet at 770 Broadway, on an 鈥渁s is鈥�, triple net basis for a 70-year lease term. Under the terms of the master lease, a rental agreement under Section 467 of the Internal Revenue Code, NYU made a prepaid lease payment of $935,000,000 and will also make annual lease payments of approximately $9,300,000 during the lease term. NYU has an option to purchase the leased premises in both 2055 and at the end of the lease term in 2095. NYU will assume the existing office leases and related tenant income at the property.

We used a portion of the prepaid lease payment to repay the $700,000,000 mortgage loan which previously encumbered the property.

We will retain the 92,000 square feet retail condominium leased to Wegmans.

PENN 1 Ground Rent Reset Determination

On April听22, 2025, an arbitration panel (the 鈥淧anel鈥�) appointed to determine the ground rent payable by Vornado鈥檚 subsidiary for the PENN 1 land parcel for the 25-year period beginning June 17, 2023 determined that the annual rent payable will be $15,000,000.

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 subsidiary鈥檚 motion to dismiss the action and Vornado鈥檚 subsidiary has filed a notice of appeal. The Panel鈥檚 decision provides that if the fee owner prevails in a final judgment in the litigation, the annual rent for the 25-year term will be $20,220,000, retroactive to June听17, 2023.

We were accruing $26,205,000 per annum of ground rent based on a previous estimate and therefore, in connection with the Panel鈥檚 determination, we reversed $17,240,000 of previously accrued rent expense during the three months ended March 31, 2025. Additionally, commencing in the first quarter of 2025, we are now paying based on the $15,000,000 annual rent.

Dispositions

666 Fifth Avenue (Fifth Avenue and Times Square JV)

On January听8, 2025, the Fifth Avenue and Times Square JV completed the sale to UNIQLO of the portion of its U.S. flagship store at 666 Fifth Avenue owned by the joint venture for $350,000,000 and realized net proceeds of $342,000,000. The net proceeds were used to partially redeem Vornado鈥檚 preferred equity on the asset. The joint venture continues to own 23,832 square feet of retail space (7,416 square feet at grade) at 666 Fifth Avenue consisting of the Abercrombie & Fitch and Tissot stores. We recognized a financial statement gain of $76,162,000, which is included in 鈥渋ncome from partially owned entities鈥� on our consolidated statements of income.

220 Central Park South

During the three months ended March 31, 2025, we closed on the sale of two condominium units and ancillary amenities at 220 CPS for net proceeds of $24,713,000, resulting in a financial statement net gain of $13,576,000 which is included in "net gains on disposition of wholly owned and partially owned assets" on our consolidated statements of income. In connection with these sales, $2,548,000 of income tax expense was recognized on our consolidated statements of income. Two units remain unsold.

Financing Activity

Senior Unsecured Notes due 2025

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

1535 Broadway (Fifth Avenue and Times Square JV)

On April 14, 2025, the Fifth Avenue and Times Square JV completed a $450,000,000 financing of 1535 Broadway. The interest-only non-recourse loan bears interest at a fixed rate of 6.90% and matures in May 2030. After transaction costs and reserves, $407,000,000 of the net proceeds from the financing were used to partially redeem Vornado鈥檚 Fifth Avenue and Times Square JV preferred equity. In connection with the financing, the annual coupon for the remaining preferred equity interest in 1535 Broadway was increased to 5.75% from 4.75% through the maturity of the new loan and then will be based on a formulaic rate.

Sustainability Margin Adjustment

In April 2025, we qualified for a sustainability margin adjustment on our unsecured term loan and revolving credit facilities by achieving certain KPI metrics, which will reduce our interest rate by 0.05% and 0.04%, respectively.

Leasing Activity

The leasing activity and related statistics in the table below are based on leases signed during the period and are not intended to coincide with the commencement of rental revenue in accordance with accounting principles generally accepted in the United States of America (鈥淕AAP鈥�). Second generation relet space represents square footage that has not been vacant for more than nine months and tenant improvements and leasing commissions are based on our share of square feet leased during the period.

(Square feet in thousands)New York555 California听
OfficeRetailTHE MARTStreet
Three Months Ended March 31, 2025
Total square feet leased7092583222
Our share of square feet leased:6851883155
Initial rent(1)$95.53$222.20$51.33$120.65
Weighted average lease term (years)14.714.38.013.1
Second generation relet space:
Square feet2541042155
GAAP basis:
Straight-line rent(2)$80.23$139.99$51.80$132.08
Prior straight-line rent$73.25$108.59$54.68$110.28
Percentage increase (decrease)9.5%28.9%(5.3)%19.8%
Cash basis (non-GAAP):
Initial rent(1)$84.72$139.40$51.67$121.04
Prior escalated rent$79.56$112.57$60.43$117.37
Percentage increase (decrease)6.5%23.8%(14.5)%3.1%
Tenant improvements and leasing commissions:
Per square foot$168.88$377.61$90.82$229.71
Per square foot per annum$11.49$26.41$11.35$17.54
Percentage of initial rent12.0%11.9%22.1%14.5%


__________________________________________
(1)Represents the cash basis weighted average starting rent per square foot, which is generally indicative of market rents. Most leases include free rent and periodic step-ups in rent which are not included in the initial cash basis rent per square foot but are included in the GAAP basis straight-line rent per square foot.
(2)Represents the GAAP basis weighted average rent per square foot that is recognized over the term of the respective leases and includes the effect of free rent and periodic step-ups in rent.


Occupancy

(At Vornado's share)New York555 California
TotalOffice(1)RetailTHE MART听Street
Occupancy as of March 31, 202583.5%84.4%72.2%78.2%92.3%


__________________________________________
(1)Includes the impact of PENN 2 being placed into service during the first quarter of 2025. Giving effect to the master lease with NYU at 770 Broadway completed in the second quarter of 2025, occupancy would be 87.4%.


Same Store Net Operating Income ("NOI") (non-GAAP) At Share:TotalNew YorkTHE
MART
(3)
555
California
Street
Same store NOI at share % increase (decrease)(1):
Three months ended March 31, 2025 compared to March 31, 20243.5%3.0%(2)9.7%5.2%
Three months ended March 31, 2025 compared to December 31, 2024(1.5)%(6.3)%(2)160.8%10.5%
Same store NOI at share - cash basis % increase (decrease)(1):
Three months ended March 31, 2025 compared to March 31, 20240.9%(0.7)%16.7%7.1%
Three months ended March 31, 2025 compared to December 31, 2024(1.5)%(4.8)%66.9%0.8%


__________________________________________
(1)See pages 11 through 14 for same store NOI at share and same store NOI at share - cash basis reconciliations.
(2)Excludes the impact of the $17,240,000 reversal of previously accrued PENN 1 ground rent. See page 3 for further details.
(3)The three months ended December 31, 2024 includes a $4,560,000 write-off of a straight-line rent receivable due to the tenant being deemed uncollectible.


NOI At Share and NOI At Share - Cash Basis:

The elements of our New York and Other NOI at share and NOI at share - cash basis for the three months ended March 31, 2025 and 2024 and the three months ended December 31, 2024 are summarized below.

(Amounts in thousands)For the Three Months Ended
March 31,
20252024December 31, 2024
NOI at share:
New York:
Office(1)$听听听听听听听听191,501$听听听听听听听听167,988$听听听听听听听听193,215
Retail46,11547,46648,238
Residential6,1925,9686,072
Alexander's9,50911,7079,515
Total New York253,317233,129257,040
Other:
THE MART(2)15,91614,4866,168
555 California Street17,84316,52915,854
Other investments6,2144,9805,904
Total Other39,97335,99527,926
NOI at share$听听听听听听听听293,290$听听听听听听听听269,124$听听听听听听听听284,966


NOI at share - cash basis:
New York:
Office(1)$167,457$166,370$181,438
Retail43,72743,87344,130
Residential5,8485,6905,750
Alexander's10,53814,86110,615
Total New York227,570230,794241,933
Other:
THE MART17,51714,94910,550
555 California Street18,13716,93818,138
Other investments6,1474,9325,967
Total Other41,80136,81934,655
NOI at share - cash basis$269,371$267,613$276,588


__________________________________________
(1)Includes Building Maintenance Services NOI of $6,936, $7,217, and $6,895 for the three months ended March 31, 2025 and 2024 and December 31, 2024.
(2)The three months ended December 31, 2024 includes a $4,560 write-off of a straight-line rent receivable due to the tenant being deemed uncollectible.


Active Development/Redevelopment Summary as of
March 31, 2025:

(Amounts in thousands, except square feet)
(at Vornado鈥檚 share)
New York segment:Property
Rentable
Sq. Ft.
BudgetCash
Amount

Expended
Remaining
Expenditures
Stabilization
Year
Projected
Incremental
Cash Yield
PENN District:
PENN 21,815,000$750,000$708,267$41,733202610.2%
Districtwide ImprovementsN/A100,00075,18924,811N/AN/A
Total PENN District850,000(1)783,45666,544
Sunset Pier 94 Studios (49.9% interest)266,000125,000(2)66,55158,449202610.3%
Total Active Development Projects$975,000$850,007$124,993


__________________________________________
(1)Excluding debt and equity carry.
(2)Represents our 49.9% share of the $350,000 development budget, excluding the $40,000 value of our contributed leasehold interest and net of an estimated $9,000 for our share of development fees and reimbursement for overhead costs incurred by us. During 2024, we fully funded our $34,000 share of cash contributions.


There can be no assurance that the above projects will be completed, completed on schedule or within budget. In addition, there can be no assurance that the Company will be successful in leasing the properties on the expected schedule or at the assumed rental rates.

Conference Call and Audio Webcast
As previously announced, 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 accessed by dialing 888-317-6003 (domestic) or 412-317-6061 (international) and entering the passcode 1149171. A live webcast of the conference call will be available on Vornado鈥檚 website at 听in the Investor Relations section and an online playback of the webcast will be available on the website following the conference call.

Contact

Thomas J. Sanelli

(212) 894-7000

Supplemental Data

Further details regarding results of operations, properties and tenants can be accessed at the Company鈥檚 website . Vornado AG真人官方ty Trust is a fully - integrated equity real estate investment trust.

Certain statements contained herein may constitute 鈥渇orward-looking statements鈥� within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are not guarantees of future performance.听They represent our intentions, plans, expectations and beliefs and are subject to numerous assumptions, risks and uncertainties.听Our future results, financial condition and business may differ materially from those expressed in these forward-looking statements. You can find many of these statements by looking for words such as "approximates," "believes," "expects," "anticipates," "estimates," "intends," "plans," "would," "may" or other similar expressions in this press release.听We also note the following forward-looking statements: in the case of our development and redevelopment projects, the estimated completion date, estimated project cost, projected incremental cash yield, stabilization date and cost to complete; estimates of future capital expenditures, dividends to common and preferred shareholders and operating partnership distributions. For a discussion of factors that could materially affect the outcome of our forward-looking statements and our future results and financial condition, see 鈥淩isk Factors鈥� in Part I, Item 1A, of our Annual Report on Form 10-K for the year ended December 31, 2024. Currently, some of the factors are interest rate fluctuations and the effects of inflation on our business, financial condition, results of operations, cash flows, operating performance and the effect that these factors have had and may continue to have on our tenants, the global, national, regional and local economies and financial markets and the real estate market in general.

VORNADO REALTY TRUST
CONSOLIDATED BALANCE SHEETS
(Amounts in thousands)As of
March 31, 2025December 31, 2024Increase
(Decrease)
ASSETS
AG真人官方 estate, at cost:
Land$听听听听听听听听2,434,209$听听听听听听听听2,434,209$听听听听听听听听鈥�
Buildings and improvements10,719,99510,439,113280,882
Development costs and construction in progress879,6011,097,395(217,794)
Leasehold improvements and equipment111,983120,915(8,932)
Total14,145,78814,091,63254,156
Less accumulated depreciation and amortization(4,105,413)(4,025,349)(80,064)
AG真人官方 estate, net10,040,37510,066,283(25,908)
Right-of-use assets677,312678,804(1,492)
Cash, cash equivalents, and restricted cash
Cash and cash equivalents568,861733,947(165,086)
Restricted cash238,027215,67222,355
Total806,888949,619(142,731)
Tenant and other receivables70,92058,85312,067
Investments in partially owned entities2,421,2832,691,478(270,195)
Receivable arising from the straight-lining of rents711,334707,0204,314
Deferred leasing costs, net385,658354,88230,776
Identified intangible assets, net116,280118,215(1,935)
Other assets369,182373,454(4,272)
Total assets$15,599,232$15,998,608$(399,376)
LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND EQUITY
Liabilities:
Mortgages payable, net$听听听听听听听听5,674,519$听听听听听听听听5,676,014$听听听听听听听听(1,495)
Senior unsecured notes, net746,2821,195,914(449,632)
Unsecured term loan, net796,295795,948347
Unsecured revolving credit facilities575,000575,000鈥�
Lease liabilities734,123749,759(15,636)
Accounts payable and accrued expenses387,898374,01313,885
Deferred compensation plan111,144114,580(3,436)
Other liabilities345,778345,511267
Total liabilities9,371,0399,826,739(455,700)
Redeemable noncontrolling interests738,224834,658(96,434)
Shareholders' equity5,314,1185,158,242155,876
Noncontrolling interests in consolidated subsidiaries175,851178,969(3,118)
Total liabilities, redeemable noncontrolling interests and equity$15,599,232$15,998,608$(399,376)



VORNADO REALTY TRUST
OPERATING RESULTS
(Amounts in thousands, except per share amounts)For the Three Months Ended
March 31,
20252024
Revenues$461,579$436,375
Net income (loss)$99,824$(6,273)
Less net loss (income) attributable to noncontrolling interests in:
Consolidated subsidiaries10,43311,982
Operating Partnership(7,889)786
Net income attributable to Vornado102,3686,495
Preferred share dividends(15,526)(15,529)
Net income (loss) attributable to common shareholders$86,842$(9,034)
Income (loss) per common share - basic:
Net income (loss) per common share$0.45$(0.05)
Weighted average shares outstanding191,371190,429
Income (loss) per common share - diluted:
Net income (loss) per common share$0.43$(0.05)
Weighted average shares outstanding200,735190,429
FFO attributable to common shareholders plus assumed conversions (non-GAAP)$135,039$104,129
Per diluted share (non-GAAP)$0.67$0.53
FFO attributable to common shareholders plus assumed conversions, as adjusted (non-GAAP)$126,245$108,847
Per diluted share (non-GAAP)$0.63$0.55
Weighted average shares used in determining FFO attributable to common shareholders plus assumed conversions per diluted share200,784196,481


FFO is computed in accordance with the definition adopted by the Board of Governors of the National Association of AG真人官方 Estate Investment Trusts (鈥淣AREIT鈥�). NAREIT defines FFO as GAAP net income or loss adjusted to exclude net gains from sales of certain real estate assets, impairment write-downs of certain real estate assets and investments in entities when the impairment is directly attributable to decreases in the value of depreciable real estate held by the entity, depreciation and amortization expense from real estate assets and other specified 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. In addition to FFO attributable to common shareholders plus assumed conversions, we also disclose FFO attributable to common shareholders plus assumed conversions, as adjusted. Although this non-GAAP measure clearly differs from NAREIT鈥檚 definition of FFO, we believe it provides a meaningful presentation of operating performance. Reconciliations of net income (loss) attributable to common shareholders to FFO attributable to common shareholders plus assumed conversions are provided on the following page. Reconciliations of FFO attributable to common shareholders plus assumed conversions to FFO attributable to common shareholders plus assumed conversions, as adjusted are provided on page 1 of this press release.

VORNADO REALTY TRUST
NON-GAAP RECONCILIATIONS
The following table reconciles net income (loss) attributable to common shareholders to FFO attributable to common shareholders plus assumed conversions:
(Amounts in thousands, except per share amounts)For the Three Months Ended
March 31,
20252024
Net income (loss) attributable to common shareholders$86,842$(9,034)
Per diluted share$0.43$(0.05)
FFO adjustments:
Depreciation and amortization of real property$104,257$96,783
Our share of partially owned entities:
Net gain on sale of real estate(77,008)鈥�
Depreciation and amortization of real property24,52526,163
FFO adjustments, net51,774122,946
Impact of assumed conversion of dilutive convertible securities310388
Noncontrolling interests' share of above adjustments on a dilutive basis(3,887)(10,171)
FFO attributable to common shareholders plus assumed conversions (non-GAAP)$135,039$104,129
Per diluted share$0.67$0.53
Reconciliation of weighted average shares outstanding:
Weighted average common shares outstanding191,371190,429
Effect of dilutive securities:
Share-based payment awards8,1614,204
Convertible securities1,2521,848
Denominator for FFO per diluted share200,784196,481


VORNADO REALTY TRUST
NON-GAAP RECONCILIATIONS - CONTINUED
Below is a reconciliation of net income (loss) to NOI at share and NOI at share - cash basis for the three months ended March 31, 2025 and 2024 and the three months ended December 31, 2024.
(Amounts in thousands)For the Three Months Ended
March 31,
20252024December 31, 2024
Net income (loss)$听听听听听听听听99,824$听听听听听听听听(6,273)$听听听听听听听听5,758
Depreciation and amortization expense116,155108,659113,061
General and administrative expense38,59737,89736,637
Transaction related costs and other436531,341
Income from partially owned entities(96,977)(16,279)(30,007)
Interest and other investment income, net(8,261)(11,724)(11,348)
Interest and debt expense95,81690,478100,483
Net gains on disposition of wholly owned and partially owned assets(15,551)鈥�鈥�
Income tax expense7,1936,7405,822
NOI from partially owned entities67,11170,36973,270
NOI attributable to noncontrolling interests in consolidated subsidiaries(10,660)(11,396)(10,051)
NOI at share293,290269,124284,966
Non-cash adjustments for straight-line rents, amortization of acquired below-market leases, net, and other(23,919)(1,511)(8,378)
NOI at share - cash basis$听听听听听听听听269,371$听听听听听听听听267,613$听听听听听听听听276,588


NOI at share represents total revenues less operating expenses including our share of partially owned entities. NOI at share - cash basis represents NOI at share adjusted to exclude straight-line rental income and expense, amortization of acquired below and above market leases, accruals for ground rent resets yet to be determined, and other non-cash adjustments. We consider NOI at share to be the primary non-GAAP financial measure for making decisions and assessing the unlevered performance of our segments as it relates to the total return on assets as opposed to the levered return on equity. As properties are bought and sold based on NOI at share - cash basis, we utilize this measure to make investment decisions as well as to compare the performance of our assets to that of our peers. NOI at share and NOI at share - cash basis should not be considered alternatives to net income or cash flow from operations and may not be comparable to similarly titled measures employed by other companies.

VORNADO REALTY TRUST
NON-GAAP RECONCILIATIONS - CONTINUED

Same store NOI at share represents NOI at share from operations which are in service in both the current and prior year reporting periods. Same store NOI at share - cash basis is same store NOI at share adjusted to exclude straight-line rental income and expense, amortization of acquired below and above market leases, accruals for ground rent resets yet to be determined, and other non-cash adjustments. We use these non-GAAP measures to (i) facilitate meaningful comparisons of the operational performance of our properties and segments, (ii) make decisions on whether to buy, sell or refinance properties, and (iii) compare the performance of our properties and segments to those of our peers.听Same store NOI at share and same store NOI at share - cash basis should not be considered alternatives to net income or cash flow from operations and may not be comparable to similarly titled measures employed by other companies.

Below are reconciliations of NOI at share to same store NOI at share for our New York segment, THE MART, 555 California Street and other investments for the three months ended March 31, 2025 compared to March 31, 2024.

(Amounts in thousands)TotalNew YorkTHE MART555
California
Street
Other
NOI at share for the three months ended March 31, 2025$293,290$253,317$15,916$17,843$6,214
Less NOI at share from:
Dispositions(221)(153)(68)鈥�鈥�
Development properties(6,730)(6,730)鈥�鈥�鈥�
Other non-same store income, net(27,536)(20,866)鈥�(456)(6,214)
Same store NOI at share for the three months ended March 31, 2025$258,803$225,568$15,848$17,387$鈥�
NOI at share for the three months ended March 31, 2024$269,124$233,129$14,486$16,529$4,980
Less NOI at share from:
Dispositions(3,408)(3,374)(34)鈥�鈥�
Development properties(9,727)(9,727)鈥�鈥�鈥�
Other non-same store income, net(6,029)(1,049)鈥�鈥�(4,980)
Same store NOI at share for the three months ended March 31, 2024$249,960$218,979$14,452$16,529$鈥�
Increase in same store NOI at share$8,843$6,589$1,396$858$鈥�
% increase in same store NOI at share3.5%3.0%9.7%5.2%0.0%


VORNADO REALTY TRUST
NON-GAAP RECONCILIATIONS - CONTINUED
Below are reconciliations of NOI at share - cash basis to same store NOI at share - cash basis for our New York segment, THE MART, 555 California Street and other investments for the three months ended March 31, 2025 compared to March 31, 2024.
(Amounts in thousands)TotalNew YorkTHE MART555
California
Street
Other
NOI at share - cash basis for the three months ended March 31, 2025$269,371$227,570$17,517$18,137$6,147
Less NOI at share - cash basis from:
Dispositions(223)(153)(70)鈥�鈥�
Development properties(6,489)(6,489)鈥�鈥�鈥�
Other non-same store income, net(11,631)(5,484)鈥�鈥�(6,147)
Same store NOI at share - cash basis for the three months ended March 31, 2025$251,028$215,444$17,447$18,137$鈥�
NOI at share - cash basis for the three months ended March 31, 2024$267,613$230,794$14,949$16,938$4,932
Less NOI at share - cash basis from:
Dispositions(2,894)(2,895)1鈥�鈥�
Development properties(9,244)(9,244)鈥�鈥�鈥�
Other non-same store income, net(6,598)(1,666)鈥�鈥�(4,932)
Same store NOI at share - cash basis for the three months ended March 31, 2024$248,877$216,989$14,950$16,938$鈥�
Increase (decrease) in same store NOI at share - cash basis$2,151$(1,545)$2,497$1,199$鈥�
% increase (decrease) in same store NOI at share - cash basis0.9%(0.7)%16.7%7.1%0.0%


VORNADO REALTY TRUST
NON-GAAP RECONCILIATIONS - CONTINUED
Below are reconciliations of NOI at share to same store NOI at share for our New York segment, THE MART, 555 California Street and other investments for the three months ended March 31, 2025 compared to December 31, 2024.
(Amounts in thousands)TotalNew YorkTHE MART555
California
Street
Other
NOI at share for the three months ended March 31, 2025$293,290$253,317$15,916$17,843$6,214
Less NOI at share from:
Dispositions(221)(153)(68)鈥�鈥�
Development properties(6,196)(6,196)鈥�鈥�鈥�
Other non-same store income, net(26,946)(20,276)鈥�(456)(6,214)
Same store NOI at share for the three months ended March 31, 2025$259,927$226,692$15,848$17,387$鈥�
NOI at share for the three months ended December 31, 2024$284,966$257,040$6,168$15,854$5,904
Less NOI at share from:
Dispositions(3,610)(3,518)(92)鈥�鈥�
Development properties(5,627)(5,627)鈥�鈥�鈥�
Other non-same store income, net(11,880)(5,850)鈥�(126)(5,904)
Same store NOI at share for the three months ended December 31, 2024$263,849$242,045$6,076$15,728$鈥�
(Decrease) increase in same store NOI at share$(3,922)$(15,353)$9,772$1,659$鈥�
% (decrease) increase in same store NOI at share(1.5)%(6.3)%160.8%10.5%0.0%


VORNADO REALTY TRUST
NON-GAAP RECONCILIATIONS - CONTINUED

Below are reconciliations of NOI at share - cash basis to same store NOI at share - cash basis for our New York segment, THE MART, 555 California Street and other investments for the three months ended March 31, 2025 compared to December 31, 2024.

(Amounts in thousands)TotalNew YorkTHE MART555
California
Street
Other
NOI at share - cash basis for the three months ended March 31, 2025$269,371$227,570$17,517$18,137$6,147
Less NOI at share - cash basis from:
Dispositions(223)(153)(70)鈥�鈥�
Development properties137137鈥�鈥�鈥�
Other non-same store income, net(10,995)(4,848)鈥�鈥�(6,147)
Same store NOI at share - cash basis for the three months ended March 31, 2025$258,290$222,706$17,447$18,137$鈥�
NOI at share - cash basis for the three months ended December 31, 2024$276,588$241,933$10,550$18,138$5,967
Less NOI at share - cash basis from:
Dispositions(2,312)(2,218)(94)鈥�鈥�
Development properties(1,664)(1,664)鈥�鈥�鈥�
Other non-same store income, net(10,263)(4,153)鈥�(143)(5,967)
Same store NOI at share - cash basis for the three months ended December 31, 2024$262,349$233,898$10,456$17,995$鈥�
(Decrease) increase in same store NOI at share - cash basis$(4,059)$(11,192)$6,991$142$鈥�
% (decrease) increase in same store NOI at share - cash basis(1.5)%(4.8)%66.9%0.8%0.0%

FAQ

What was Vornado's (VNO) earnings per share in Q1 2025?

Vornado reported net income of $0.43 per diluted share and FFO of $0.67 per diluted share in Q1 2025.

What major real estate deal did Vornado complete with NYU in 2025?

Vornado completed a 70-year master lease with NYU for 1,076,000 square feet at 770 Broadway, receiving a $935M prepaid lease payment plus annual payments of $9.3M.

How much did Vornado sell its UNIQLO portion at 666 Fifth Avenue for?

Vornado's joint venture sold the UNIQLO portion at 666 Fifth Avenue for $350M, generating net proceeds of $342M and a gain of $76.2M.

What is Vornado's current occupancy rate in New York?

Vornado's New York portfolio had a total occupancy rate of 83.5%, with office at 84.4% and retail at 72.2%.

How did Vornado's Q1 2025 FFO compare to the previous year?

Vornado's Q1 2025 FFO was $135M ($0.67 per share), compared to $104.1M ($0.53 per share) in Q1 2024, representing a 26.4% increase.
Vornado AG真人官方ty

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7.13B
179.46M
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96.49%
5.79%
REIT - Office
AG真人官方 Estate Investment Trusts
United States
NEW YORK