Segment Information (Tables)

6 Months Ended

Jun. 30, 2013


(Amounts in thousands)		For the Three Months Ended June 30, 2013
											Retail
			Total		New York			Washington, DC			Properties			Toys		Other
Property rentals			$	519,733	$	286,844		$	112,733		$	64,374		$	-	$	55,782
Straight-line rent adjustments				13,789		7,533			1,231			909			-		4,116
Amortization of acquired below-market
	leases, net			11,672		6,944			516			2,885			-		1,327
Total rentals				545,194		301,321			114,480			68,168			-		61,225
Tenant expense reimbursements				75,659		38,785			10,666			22,028			-		4,180
Cleveland Medical Mart development project				16,990		-			-			-			-		16,990
Fee and other income:
	BMS cleaning fees			16,509		20,979			-			-			-		(4,470)
	Signage revenue			8,347		8,347			-			-			-		-
	Management and leasing fees			6,435		2,854			3,459			320			-		(198)
	Lease termination fees			7,129		5,432			182			198			-		1,317
	Other income			9,595		3,254			5,530			283			-		528
Total revenues				685,858		380,972			134,317			90,997			-		79,572
Operating expenses				261,080		157,622			48,290			34,091			-		21,077
Depreciation and amortization				135,486		69,387			30,619			15,457			-		20,023
General and administrative				54,323		8,881			6,873			5,169			-		33,400
Cleveland Medical Mart development project				15,151		-			-			-			-		15,151
Acquisition related costs				3,350		-			-			-			-		3,350
Total expenses				469,390		235,890			85,782			54,717			-		93,001
Operating income (loss)				216,468		145,082			48,535			36,280			-		(13,429)
(Loss) applicable to Toys				(36,861)		-			-			-			(36,861)		-
Income (loss) from partially owned entities				1,472		4,226			(2,449)			423			-		(728)
Income from Real Estate Fund				34,470		-			-			-			-		34,470
Interest and other investment
	income (loss), net			26,416		1,443			6			(48)			-		25,015
Interest and debt expense				(121,762)		(42,835)			(27,854)			(12,435)			-		(38,638)
Net gain on disposition of wholly owned and
	partially owned assets			1,005		-			-			-			-		1,005
Income (loss) before income taxes				121,208		107,916			18,238			24,220			(36,861)		7,695
Income tax expense				(2,877)		(961)			(805)			(749)			-		(362)
Income (loss) from continuing operations				118,331		106,955			17,433			23,471			(36,861)		7,333
Income (loss) from discontinued operations				63,990		-			-			64,136			-		(146)
Net income (loss)				182,321		106,955			17,433			87,607			(36,861)		7,187
Less net income attributable to
	noncontrolling interests in
	consolidated subsidiaries			(14,930)		(1,381)			-			(13)			-		(13,536)
Net income (loss) attributable to
	Vornado Realty L.P.			167,391		105,574			17,433			87,594			(36,861)		(6,349)
Interest and debt expense⁽²⁾				179,461		54,546			31,245			13,715			37,730		42,225
Depreciation and amortization⁽²⁾				182,131		74,573			35,248			16,348			33,882		22,080
Income tax (benefit) expense ⁽²⁾				(22,366)		1,030			852			749			(25,697)		700
EBITDA⁽¹⁾			$	506,617	$	235,723	⁽³⁾	$	84,778	⁽⁴⁾	$	118,406	⁽⁵⁾	$	9,054	$	58,656	⁽⁶⁾


See notes on page 37.


(Amounts in thousands)		For the Three Months Ended June 30, 2012
											Retail
			Total		New York			Washington, DC			Properties			Toys		Other
Property rentals			$	484,016	$	245,948		$	118,014		$	64,554		$	-	$	55,500
Straight-line rent adjustments				20,647		17,065			1,258			2,276			-		48
Amortization of acquired below-market
	leases, net			12,570		7,623			508			2,950			-		1,489
Total rentals				517,233		270,636			119,780			69,780			-		57,037
Tenant expense reimbursements				71,409		36,985			10,862			20,986			-		2,576
Cleveland Medical Mart development project				56,304		-			-			-			-		56,304
Fee and other income:
	BMS cleaning fees			16,982		23,911			-			-			-		(6,929)
	Signage revenue			4,879		4,879			-			-			-		-
	Management and leasing fees			4,546		1,113			2,384			1,068			-		(19)
	Lease termination fees			479		233			128			1			-		117
	Other income			6,151		576			4,968			373			-		234
Total revenues				677,983		338,333			138,122			92,208			-		109,320
Operating expenses				243,485		143,190			47,416			33,708			-		19,171
Depreciation and amortization				128,372		56,665			35,017			18,495			-		18,195
General and administrative				46,832		6,654			6,231			6,367			-		27,580
Cleveland Medical Mart development project				53,935		-			-			-			-		53,935
Acquisition related costs				2,559		-			-			-			-		2,559
Total expenses				475,183		206,509			88,664			58,570			-		121,440
Operating income (loss)				202,800		131,824			49,458			33,638			-		(12,120)
(Loss) applicable to Toys				(19,190)		-			-			-			(19,190)		-
Income (loss) from partially owned entities				12,563		6,851			(519)			294			-		5,937
Income from Real Estate Fund				20,301		-			-			-			-		20,301
Interest and other investment
	(loss) income, net			(49,172)		1,057			29			6			-		(50,264)
Interest and debt expense				(124,320)		(36,407)			(27,999)			(16,170)			-		(43,744)
Net gain on disposition of wholly owned and
	partially owned assets			4,856		-			-			-			-		4,856
Income (loss) before income taxes				47,838		103,325			20,969			17,768			(19,190)		(75,034)
Income tax expense				(7,479)		(1,064)			(852)			-			-		(5,563)
Income (loss) from continuing operations				40,359		102,261			20,117			17,768			(19,190)		(80,597)
Income (loss) from discontinued operations				17,869		(32)			2,956			16,254			-		(1,309)
Net income (loss)				58,228		102,229			23,073			34,022			(19,190)		(81,906)
Less net (income) loss attributable to
	noncontrolling interests in
	consolidated subsidiaries			(14,721)		(2,998)			-			97			-		(11,820)
Net income (loss) attributable to
	Vornado Realty L.P.			43,507		99,231			23,073			34,119			(19,190)		(93,726)
Interest and debt expense⁽²⁾				190,942		46,413			32,549			20,102			37,293		54,585
Depreciation and amortization⁽²⁾				184,028		63,664			39,656			22,131			32,505		26,072
Income tax (benefit) expense⁽²⁾				(5,214)		1,113			1,034			-			(14,103)		6,742
EBITDA⁽¹⁾			$	413,263	$	210,421	⁽³⁾	$	96,312	⁽⁴⁾	$	76,352	⁽⁵⁾	$	36,505	$	(6,327)	⁽⁶⁾


See notes on page 37.


(Amounts in thousands)		For the Six Months Ended June 30, 2013
											Retail
			Total		New York			Washington, DC			Properties			Toys		Other
Property rentals			$	1,018,247	$	561,494		$	225,005		$	128,785		$	-	$	102,963
Straight-line rent adjustments				32,297		17,859			4,008			2,367			-		8,063
Amortization of acquired below-market
	leases, net			28,506		19,033			1,022			5,775			-		2,676
Total rentals				1,079,050		598,386			230,035			136,927			-		113,702
Tenant expense reimbursements				152,415		81,456			20,802			42,404			-		7,753
Cleveland Medical Mart development project				29,133		-			-			-			-		29,133
Fee and other income:
	BMS cleaning fees			33,173		42,001			-			-			-		(8,828)
	Signage revenue			14,828		14,828			-			-			-		-
	Management and leasing fees			11,693		4,918			6,266			799			-		(290)
	Lease termination fees			67,155		5,490			550			59,797			-		1,318
	Other income			18,390		3,969			11,395			859			-		2,167
Total revenues				1,405,837		751,048			269,048			240,786			-		144,955
Operating expenses				520,953		317,853			95,612			68,090			-		39,398
Depreciation and amortization				277,570		145,621			61,569			32,177			-		38,203
General and administrative				108,905		17,703			13,798			10,584			-		66,820
Cleveland Medical Mart development project				26,525		-			-			-			-		26,525
Acquisition related costs				3,951		-			-			-			-		3,951
Total expenses				937,904		481,177			170,979			110,851			-		174,897
Operating income (loss)				467,933		269,871			98,069			129,935			-		(29,942)
(Loss) applicable to Toys				(35,102)		-			-			-			(35,102)		-
Income (loss) from partially owned entities				22,238		9,831			(4,542)			1,324			-		15,625
Income from Real Estate Fund				51,034		-			-			-			-		51,034
Interest and other investment (loss)
	income, net			(22,658)		2,608			82			4			-		(25,352)
Interest and debt expense				(243,650)		(83,453)			(56,104)			(24,076)			-		(80,017)
Net loss on disposition of wholly owned and
	partially owned assets			(35,719)		-			-			-			-		(35,719)
Income (loss) before income taxes				204,076		198,857			37,505			107,187			(35,102)		(104,371)
Income tax expense				(3,950)		(1,233)			(1,183)			(749)			-		(785)
Income (loss) from continuing operations				200,126		197,624			36,322			106,438			(35,102)		(105,156)
Income from discontinued operations				271,122		-			-			270,849			-		273
Net income (loss)				471,248		197,624			36,322			377,287			(35,102)		(104,883)
Less net income attributable to
	noncontrolling interests in
	consolidated subsidiaries			(26,216)		(2,962)			-			(109)			-		(23,145)
Net income (loss) attributable to
	Vornado Realty L.P.			445,032		194,662			36,322			377,178			(35,102)		(128,028)
Interest and debt expense⁽²⁾				368,241		104,235			62,998			27,938			80,912		92,158
Depreciation and amortization⁽²⁾				376,316		152,986			70,396			34,867			71,556		46,511
Income tax expense⁽²⁾				38,393		1,377			1,306			749			33,649		1,312
EBITDA⁽¹⁾			$	1,227,982	$	453,260	⁽³⁾	$	171,022	⁽⁴⁾	$	440,732	⁽⁵⁾	$	151,015	$	11,953	⁽⁶⁾

See notes on page 37.


(Amounts in thousands)		For the Six Months Ended June 30, 2012
										Retail
		Total		New York			Washington, DC			Properties			Toys		Other
Property rentals		$	958,447	$	479,884		$	240,818		$	129,146		$	-	$	108,599
Straight-line rent adjustments			41,966		34,194			3,115			3,580			-		1,077
Amortization of acquired below-market
	leases, net		26,313		15,318			1,031			7,107			-		2,857
Total rentals			1,026,726		529,396			244,964			139,833			-		112,533
Tenant expense reimbursements			141,906		73,697			20,870			41,962			-		5,377
Cleveland Medical Mart development project			111,363		-			-			-			-		111,363
Fee and other income:
	BMS cleaning fees		32,492		46,558			-			-			-		(14,066)
	Signage revenue		9,469		9,469			-			-			-		-
	Management and leasing fees		9,300		2,221			5,167			1,904			-		8
	Lease termination fees		890		256			128			1			-		505
	Other income		14,164		2,333			10,558			714			-		559
Total revenues			1,346,310		663,930			281,687			184,414			-		216,279
Operating expenses			489,462		288,862			93,618			68,189			-		38,793
Depreciation and amortization			259,767		110,424			77,570			36,256			-		35,517
General and administrative			102,122		15,241			13,181			12,700			-		61,000
Cleveland Medical Mart development project			106,696		-			-			-			-		106,696
Acquisition related costs			3,244		-			-			-			-		3,244
Total expenses			961,291		414,527			184,369			117,145			-		245,250
Operating income (loss)			385,019		249,403			97,318			67,269			-		(28,971)
Income applicable to Toys			97,281		-			-			-			97,281		-
Income (loss) from partially owned entities			32,223		11,036			(2,389)			698			-		22,878
Income from Real Estate Fund			32,063		-			-			-			-		32,063
Interest and other investment (loss)
	income, net		(33,507)		2,109			73			20			-		(35,709)
Interest and debt expense			(254,379)		(72,548)			(57,097)			(32,522)			-		(92,212)
Net gain on disposition of wholly owned and
	partially owned assets		4,856		-			-			-			-		4,856
Income (loss) before income taxes			263,556		190,000			37,905			35,465			97,281		(97,095)
Income tax expense			(14,304)		(1,665)			(1,302)			-			-		(11,337)
Income (loss) from continuing operations			249,252		188,335			36,603			35,465			97,281		(108,432)
Income (loss) from discontinued operations			89,240		(640)			4,542			26,473			-		58,865
Net income (loss)			338,492		187,695			41,145			61,938			97,281		(49,567)
Less net (income) loss attributable to
	noncontrolling interests in
	consolidated subsidiaries		(24,318)		(5,174)			-			211			-		(19,355)
Net income (loss) attributable to
	Vornado Realty L.P.		314,174		182,521			41,145			62,149			97,281		(68,922)
Interest and debt expense⁽²⁾			384,024		93,471			66,206			40,540			68,862		114,945
Depreciation and amortization⁽²⁾			375,201		125,575			87,916			44,406			67,211		50,093
Income tax expense⁽²⁾			46,226		1,806			1,557			-			29,100		13,763
EBITDA⁽¹⁾		$	1,119,625	$	403,373	⁽³⁾	$	196,824	⁽⁴⁾	$	147,095	⁽⁵⁾	$	262,454	$	109,879	⁽⁶⁾


See notes on the following page.

22. Segment Information - continued

	Notes to preceding tabular information:


(1)	EBITDA represents "Earnings Before Interest, Taxes, Depreciation and Amortization." We consider EBITDA a supplemental 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 a multiple of EBITDA, we utilize this measure to make investment decisions as well as to compare the performance of our assets to that of our peers. EBITDA should not be considered a substitute for net income. EBITDA may not be comparable to similarly titled measures employed by other companies.


(2)	Interest and debt expense, depreciation and amortization and income tax (benefit) expense in the reconciliation of net income (loss) to EBITDA includes our share of these items from partially owned entities.


(3)	The elements of "New York" EBITDA are summarized below.

				For the Three Months				For the Six Months
				Ended June 30,				Ended June 30,
	(Amounts in thousands)			2013		2012		2013		2012
	Office			$	158,186	$	142,077	$	304,482	$	277,257
	Retail				57,230		45,577		117,612		90,497
	Alexander's (decrease due to sale of Kings Plaza
		in November 2012)			10,213		13,026		20,754		26,397
	Hotel Pennsylvania				10,094		9,741		10,412		9,222
		Total New York		$	235,723	$	210,421	$	453,260	$	403,373


(4)	The elements of "Washington, DC" EBITDA are summarized below.

				For the Three Months				For the Six Months
				Ended June 30,				Ended June 30,
	(Amounts in thousands)			2013		2012		2013		2012
	Office, excluding the Skyline Properties			$	66,136	$	74,953	$	133,243	$	153,287
	Skyline properties				7,543		10,661		15,705		22,191
		Total Office			73,679		85,614		148,948		175,478
	Residential				11,099		10,698		22,074		21,346
		Total Washington, DC		$	84,778	$	96,312	$	171,022	$	196,824


(5)	The elements of "Retail Properties" EBITDA are summarized below.

				For the Three Months				For the Six Months
				Ended June 30,				Ended June 30,
	(Amounts in thousands)			2013		2012		2013		2012
	Strip shopping centers^(a)			$	101,529	$	52,268	$	204,890	$	99,176
	Regional malls^(b)				16,877		24,084		235,842		47,919
		Total Retail properties		$	118,406	$	76,352	$	440,732	$	147,095


	(a)		The three and six months ended June 30, 2013, includes a $33,058 net gain on sale of Philadelphia (Market Street) and a $32,169 net gain on sale of San Jose (The Plant). The six months ended June 30, 2013, includes $59,599 of income pursuant to a settlement agreement with Stop & Shop.

	(b)		The six months ended June 30, 2013, includes a $202,275 net gain on sale of Green Acres Mall.

Details of Other EBITDA (Table)

22. Segment Information - continued

	Notes to preceding tabular information - continued:


(6)	The elements of "other" EBITDA are summarized below.

				For the Three Months				For the Six Months
				Ended June 30,				Ended June 30,
	(Amounts in thousands)			2013		2012		2013		2012
	Our share of Real Estate Fund:
		(Loss) income before net realized/unrealized gains		$	(1,713)	$	170	$	(251)	$	2,288
		Net unrealized gains			8,398		5,284		11,777		6,995
		Carried interest			13,426		2,541		15,609		2,541
	Total				20,111		7,995		27,135		11,824
	Merchandise Mart Building, 7 West 34th Street and trade shows				22,448		17,349		37,161		32,649
	555 California Street				11,022		10,377		21,651		20,692
	LNR^(a)				-		11,671		20,443		27,233
	Lexington^(b)				-		7,703		6,931		16,921
	Other investments				8,014		11,523		12,890		20,823
					61,595		66,618		126,211		130,142
	Corporate general and administrative expenses^(c)				(24,831)		(21,812)		(47,587)		(44,129)
	Investment income and other, net^(c)				16,709		15,294		28,045		27,628
	Income (loss) from the mark-to-market of J.C. Penney
		derivative position			9,065		(58,732)		(13,475)		(57,687)
	Acquisition related costs				(3,350)		(2,559)		(3,951)		(3,244)
	Severance costs (primarily reduction in force at
		the Merchandise Mart)			(1,542)		-		(4,154)		(506)
	Net gain on sale of residential condominiums				1,005		1,274		1,005		1,274
	Merchandise Mart discontinued operations (including
		net gains on sale of assets)			5		(6,410)		2,146		56,401
	Non-cash impairment loss on J.C. Penney common shares				-		-		(39,487)		-
	Loss on sale of J.C. Penney common shares				-		-		(36,800)		-
				$	58,656	$	(6,327)	$	11,953	$	109,879


	(a)		On April 22, 2013, LNR was sold (see page 14 for details).

	(b)		In the first quarter of 2013, we began accounting for our investment in Lexington as a marketable equity security - available for sale (see page 12 for details).

	(c)		The amounts in these captions (for this table only) exclude the mark-to-market of our deferred compensation plan assets and offsetting liability.

- Definition

Tabular disclosure of the profit or loss and total assets for each reportable segment. An entity discloses certain information on each reportable segment if the amounts (a) are included in the measure of segment profit or loss reviewed by the chief operating decision maker or (b) are otherwise regularly provided to the chief operating decision maker, even if not included in that measure of segment profit or loss.

+ References+ Details