EX-99 2 exhibit991.htm EXHIBIT 99.1 exhibit991.htm - Generated by SEC Publisher for SEC Filing  

 EXHIBIT 99.1

CONTACT:

STEPHEN THERIOT

 

 

 

(201) 587-1000

 

 

 

 

 

Vornado Logo 282

 

 

 

888 Seventh Avenue

 

 

 

New York, NY 10019

 

 

FOR IMMEDIATE RELEASE – February 13, 2017

 

Vornado Announces Fourth Quarter 2016 Financial Results

 

NEW YORK.......VORNADO REALTY TRUST (New York Stock Exchange: VNO) filed its Form 10-K for the year ended December 31, 2016 today and reported:

 

Quarter Ended December 31, 2016 Financial Results

 

·         NET INCOME attributable to common shareholders for the quarter ended December 31, 2016 was $651.2 million, or $3.43 per diluted share, compared to $230.7 million, or $1.22 per diluted share, for the prior year’s quarter.

·         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 quarters ended December 31, 2016 and 2015 was $56.7 million and $86.4 million, or $0.30 and $0.46 per diluted share, respectively.

·         FUNDS FROM OPERATIONS attributable to common shareholders plus assumed conversions (“FFO”) for the quarter ended December 31, 2016 was $797.7 million, or $4.20 per diluted share, compared to $259.5 million, or $1.37 per diluted share, for the prior year’s quarter. 

·         Adjusting FFO for the items listed in the table on the following page, FFO for the quarters ended December 31, 2016 and 2015 was $214.7 million and $238.1 million, or $1.13 and $1.26 per diluted share, respectively.

·         Net income as adjusted and FFO as adjusted for the quarter ended December 31, 2016 include $41.4 million, or $0.20 per diluted share, for our 33.0% share of a non-cash unrealized loss and related reduction in our carried interest accrual, based on the fourth quarter mark-to-market fair value adjustment of our real estate funds’ investment in the Crowne Plaza Times Square Hotel.

 

Year Ended December 31, 2016 Financial Results

 

·         NET INCOME attributable to common shareholders for the year ended December 31, 2016 was $823.6 million, or $4.34 per diluted share, compared to $679.9 million, or $3.59 per diluted share, for the prior year. 

·         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 years ended December 31, 2016 and 2015 was $253.9 million and $310.4 million, or $1.34 and $1.64 per diluted share, respectively.

·         FFO for the year ended December 31, 2016 was $1,457.6 million, or $7.66 per diluted share, compared to $1,039.0 million, or $5.48 per diluted share, for the prior year. 

·         Adjusting FFO for the items listed in the table on the following page, FFO for the years ended December 31, 2016 and 2015 was $886.8 million and $900.9 million, or $4.66 and $4.75 per diluted share, respectively.

·         Net income as adjusted and FFO as adjusted for the year ended December 31, 2016 include $41.4 million, or $0.20 per diluted share, for our 33.0% share of a non-cash unrealized loss and related reduction in our carried interest accrual, resulting from the fourth quarter mark-to-market fair value adjustment of our real estate funds’ investment in the Crowne Plaza Times Square Hotel.

 

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 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)

1

 
 
The following table reconciles our net income to net income, as adjusted:

 

(Amounts in thousands, except per share amounts)

For the Quarter Ended

 

For the Year Ended

 

December 31,

 

December 31,

 

 

 

2016

 

2015

 

2016

 

2015

Net income attributable to common shareholders

$

651,181

 

$

230,742

 

$

823,606

 

$

679,856

 

Per diluted share

$

3.43

 

$

1.22

 

$

4.34

 

$

3.59

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Certain items that impact net income attributable to common shareholders:

 

 

 

 

 

 

 

 

 

 

 

 

Net gain on extinguishment of Skyline properties debt

$

487,877

 

$

-

 

$

487,877

 

$

-

 

Income from the repayment of our investments in 85 Tenth Avenue

 

 

 

 

 

 

 

 

 

 

 

 

   loans and preferred equity

 

160,843

 

 

-

 

 

160,843

 

 

-

 

Net gain on sale of our 20% interest in Fairfax Square

 

15,302

 

 

-

 

 

15,302

 

 

-

 

Acquisition and transaction related costs

 

(14,743)

 

 

(4,951)

 

 

(26,037)

 

 

(12,511)

 

Default interest on Skyline properties mortgage loan

 

(2,480)

 

 

-

 

 

(7,823)

 

 

-

 

Net (loss) income from discontinued operations and sold properties

 

(117)

 

 

13,943

 

 

1,730

 

 

32,419

 

Net gains on sale of real estate

 

-

 

 

142,693

 

 

159,511

 

 

255,964

 

Net gains on sale of residential condominiums

 

-

 

 

4,231

 

 

714

 

 

6,724

 

Skyline properties impairment loss

 

-

 

 

-

 

 

(160,700)

 

 

-

 

Preferred share issuance costs (Series J redemption)

 

-

 

 

-

 

 

(7,408)

 

 

-

 

Reversal of allowance for deferred tax assets (re: taxable REIT

 

 

 

 

 

 

 

 

 

 

 

 

   subsidiary's ability to utilize NOLs)

 

-

 

 

-

 

 

-

 

 

90,030

 

Net gain on sale of our interest in Monmouth Mall

 

-

 

 

-

 

 

-

 

 

33,153

 

Our share of partially owned entities:

 

 

 

 

 

 

 

 

 

 

 

 

 

Real estate impairment losses

 

(14,754)

 

 

(4,141)

 

 

(20,290)

 

 

(21,260)

 

 

Net gains on sale of real estate

 

13

 

 

-

 

 

2,854

 

 

4,513

 

Other

 

208

 

 

1,671

 

 

183

 

 

3,004

 

 

 

 

632,149

 

 

153,446

 

 

606,756

 

 

392,036

Noncontrolling interests' share of above adjustments

 

(37,676)

 

 

(9,145)

 

 

(37,031)

 

 

(22,581)

Certain items that impact net income attributable to common shareholders, net

$

594,473

 

$

144,301

 

$

569,725

 

$

369,455

 

 

 

 

 

 

 

 

 

 

 

 

Net income attributable to common shareholders, as adjusted

$

56,708

 

$

86,441

 

$

253,881

 

$

310,401

 

Per diluted share

$

0.30

 

$

0.46

 

$

1.34

 

$

1.64

2

 
 
The following table reconciles our FFO to FFO, as adjusted:

 

(Amounts in thousands, except per share amounts)

For the Quarter Ended

 

For the Year Ended

 

 

 

December 31,

 

December 31,

 

 

 

2016

 

2015

 

2016

 

2015

FFO (1)

$

797,734

 

$

259,528

 

$

1,457,583

 

$

1,039,035

 

Per diluted share

$

4.20

 

$

1.37

 

$

7.66

 

$

5.48

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Certain items that impact FFO:

 

 

 

 

 

 

 

 

 

 

 

 

Net gain on extinguishment of Skyline properties debt

$

487,877

 

$

-

 

$

487,877

 

$

-

 

Income from the repayment of our investments in 85 Tenth Avenue

 

 

 

 

 

 

 

 

 

 

 

 

   loans and preferred equity

 

160,843

 

 

-

 

 

160,843

 

 

-

 

Acquisition and transaction related costs

 

(14,743)

 

 

(4,951)

 

 

(26,037)

 

 

(12,511)

 

Default interest on Skyline properties mortgage loan

 

(2,480)

 

 

-

 

 

(7,823)

 

 

-

 

FFO from discontinued operations and sold properties

 

2,202

 

 

22,137

 

 

11,923

 

 

64,263

 

Net gains on sale of residential condominiums

 

-

 

 

4,231

 

 

714

 

 

6,724

 

Preferred share issuance costs (Series J redemption)

 

-

 

 

-

 

 

(7,408)

 

 

-

 

Reversal of allowance for deferred tax assets (re: taxable REIT

 

 

 

 

 

 

 

 

 

 

 

 

   subsidiary's ability to utilize NOLs)

 

-

 

 

-

 

 

-

 

 

90,030

 

Our share of partially owned entities:

 

 

 

 

 

 

 

 

 

 

 

 

 

Real estate impairment losses

 

(13,962)

 

 

-

 

 

(13,962)

 

 

(4,502)

 

Other

 

208

 

 

1,671

 

 

183

 

 

3,004

 

 

 

 

619,945

 

 

23,088

 

 

606,310

 

 

147,008

Noncontrolling interests' share of above adjustments

 

(36,949)

 

 

(1,619)

 

 

(35,530)

 

 

(8,850)

Certain items that impact FFO, net

$

582,996

 

$

21,469

 

$

570,780

 

$

138,158

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FFO, as adjusted

$

214,738

 

$

238,059

 

$

886,803

 

$

900,877

 

Per diluted share

$

1.13

 

$

1.26

 

$

4.66

 

$

4.75

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1)

See page 5 for a reconciliation of our net income to FFO for the quarters and years ended December 31, 2016 and 2015.

3

 
 
VORNADO REALTY TRUST

OPERATING RESULTS FOR THE QUARTERS AND YEARS ENDED

DECEMBER 31, 2016 AND 2015

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Amounts in thousands, except per share amounts)

For the Quarter Ended

 

For the Year Ended

 

December 31,

 

December 31,

 

 

 

 

2016

 

2015

 

2016

 

2015

Revenues

$

638,260

 

$

651,581

 

$

2,506,202

 

$

2,502,267

 

 

 

 

 

 

 

 

 

 

 

 

Income from continuing operations

$

703,532

 

$

281,560

 

$

974,750

 

$

807,168

Income from discontinued operations

 

1,012

 

 

1,984

 

 

7,172

 

 

52,262

Net income

 

704,544

 

 

283,544

 

 

981,922

 

 

859,430

Less net loss (income) attributable to noncontrolling interests in:

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated subsidiaries

 

5,010

 

 

(17,395)

 

 

(21,351)

 

 

(55,765)

 

Operating Partnership

 

(42,244)

 

 

(15,042)

 

 

(53,654)

 

 

(43,231)

Net income attributable to Vornado

 

667,310

 

 

251,107

 

 

906,917

 

 

760,434

Preferred share dividends

 

(16,129)

 

 

(20,365)

 

 

(75,903)

 

 

(80,578)

Preferred share issuance costs (Series J redemption)

 

-

 

 

-

 

 

(7,408)

 

 

-

Net income attributable to common shareholders

$

651,181

 

$

230,742

 

$

823,606

 

$

679,856

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income per common share:

 

 

 

 

 

 

 

 

 

 

 

 

Basic

$

3.44

 

$

1.22

 

$

4.36

 

$

3.61

 

Diluted

$

3.43

 

$

1.22

 

$

4.34

 

$

3.59

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

189,013

 

 

188,537

 

 

188,837

 

 

188,353

 

Diluted

 

190,108

 

 

189,688

 

 

190,173

 

 

189,564

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FFO

$

797,734

 

$

259,528

 

$

1,457,583

 

$

1,039,035

 

Per diluted share

$

4.20

 

$

1.37

 

$

7.66

 

$

5.48

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FFO, as adjusted

$

214,738

 

$

238,059

 

$

886,803

 

$

900,877

 

Per diluted share

$

1.13

 

$

1.26

 

$

4.66

 

$

4.75

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares used in determining FFO per diluted share

 

190,108

 

 

189,688

 

 

190,173

 

 

189,564

4

 
 

The following table reconciles our net income to FFO: 

(Amounts in thousands, except per share amounts)

For the Quarter Ended

 

For the Year Ended

 

 

 

December 31,

 

December 31,

 

 

 

2016

 

2015

 

2016

 

2015

Net income attributable to common shareholders

$

651,181

 

$

230,742

 

$

823,606

 

$

679,856

 

Per diluted share

$

3.43

 

$

1.22

 

$

4.34

 

$

3.59

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FFO adjustments:

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization of real property

$

133,389

 

$

131,910

 

$

531,620

 

$

514,085

Net gains on sale of real estate

 

(15,302)

 

 

(142,693)

 

 

(177,023)

 

 

(289,117)

Real estate impairment losses

 

-

 

 

-

 

 

160,700

 

 

256

Proportionate share of adjustments to equity in net income (loss) of

 

 

 

 

 

 

 

 

 

 

 

 

partially owned entities to arrive at FFO:

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization of real property

 

37,160

 

 

37,275

 

 

154,795

 

 

143,960

 

 

Net gains on sale of real estate

 

(12)

 

 

-

 

 

(2,853)

 

 

(4,513)

 

 

Real estate impairment losses

 

792

 

 

4,141

 

 

6,328

 

 

16,758

 

 

 

 

156,027

 

 

30,633

 

 

673,567

 

 

381,429

Noncontrolling interests' share of above adjustments

 

(9,495)

 

 

(1,869)

 

 

(41,267)

 

 

(22,342)

FFO adjustments, net

$

146,532

 

$

28,764

 

$

632,300

 

$

359,087

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FFO attributable to common shareholders

$

797,713

 

$

259,506

 

$

1,455,906

 

$

1,038,943

Convertible preferred share dividends

 

21

 

 

22

 

 

86

 

 

92

Earnings allocated to Out-Performance Plan units

 

-

 

 

-

 

 

1,591

 

 

-

FFO attributable to common shareholders plus assumed conversions

$

797,734

 

$

259,528

 

$

1,457,583

 

$

1,039,035

 

Per diluted share

$

4.20

 

$

1.37

 

$

7.66

 

$

5.48

 

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, February 14, 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 44159718.  A telephonic replay of the conference call will be available from 1:00 p.m. ET on February 14, 2017 through March 16, 2017.  To access the replay, please dial 888-843-7419 and enter the passcode 44159718#.  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.

 

 

#####

5