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EXHIBIT 99.1 |
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ITEM 6. SELECTED FINANCIAL DATA |
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Year Ended December 31, |
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(Amounts in thousands, except per share amounts) |
2014 |
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2013 |
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2012 |
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2011 |
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2010 |
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Operating Data: |
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Revenues: |
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Property rentals |
$ |
1,911,487 |
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$ |
1,880,405 |
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$ |
1,771,264 |
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$ |
1,802,871 |
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$ |
1,790,769 |
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Tenant expense reimbursements |
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245,819 |
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226,831 |
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207,149 |
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213,200 |
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217,999 |
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Cleveland Medical Mart development project |
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- |
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36,369 |
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235,234 |
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154,080 |
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- |
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Fee and other income |
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155,206 |
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155,571 |
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119,077 |
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123,452 |
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121,103 |
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Total revenues |
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2,312,512 |
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2,299,176 |
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2,332,724 |
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2,293,603 |
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2,129,871 |
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Expenses: |
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Operating |
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953,611 |
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928,565 |
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891,637 |
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878,777 |
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848,112 |
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Depreciation and amortization |
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481,303 |
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461,627 |
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435,545 |
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441,223 |
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416,324 |
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General and administrative |
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169,270 |
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177,366 |
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167,194 |
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163,238 |
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170,460 |
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Cleveland Medical Mart development project |
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- |
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32,210 |
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226,619 |
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145,824 |
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- |
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Acquisition and transaction related costs, |
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and impairment losses |
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18,435 |
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24,857 |
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17,386 |
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34,930 |
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38,563 |
Total expenses |
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1,622,619 |
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1,624,625 |
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1,738,381 |
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1,663,992 |
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1,473,459 |
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Operating income |
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689,893 |
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674,551 |
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594,343 |
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629,611 |
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656,412 |
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Income (loss) from Real Estate Fund |
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163,034 |
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102,898 |
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63,936 |
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22,886 |
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(303) |
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(Loss) income applicable to Toys "R" Us |
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(73,556) |
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(362,377) |
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14,859 |
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48,540 |
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71,624 |
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Income from partially owned entities |
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15,425 |
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23,592 |
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408,267 |
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70,072 |
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14,601 |
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Interest and debt expense |
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(412,755) |
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(425,782) |
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(431,235) |
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(453,420) |
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(473,938) |
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Interest and other investment income (loss), net |
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38,752 |
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(24,887) |
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(261,200) |
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148,540 |
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234,768 |
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Net gain on disposition of wholly owned and partially |
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owned assets |
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13,568 |
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2,030 |
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4,856 |
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10,856 |
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81,432 |
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Net loss on extinguishment of debt |
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- |
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- |
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- |
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- |
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(10,782) |
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Income (loss) before income taxes |
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434,361 |
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(9,975) |
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393,826 |
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477,085 |
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573,814 |
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Income tax (expense) benefit |
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(9,281) |
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8,717 |
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(8,132) |
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(23,891) |
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(22,100) |
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Income (loss) from continuing operations |
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425,080 |
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(1,258) |
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385,694 |
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453,194 |
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551,714 |
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Income from discontinued operations |
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583,946 |
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565,998 |
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308,847 |
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286,806 |
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156,317 |
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Net income |
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1,009,026 |
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564,740 |
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694,541 |
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740,000 |
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708,031 |
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Less net income attributable to noncontrolling interests in: |
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Consolidated subsidiaries |
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(96,561) |
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(63,952) |
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(32,018) |
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(21,786) |
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(4,920) |
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Operating Partnership |
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(47,563) |
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(23,659) |
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(35,327) |
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(41,059) |
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(44,033) |
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Preferred unit distributions of the Operating Partnership |
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(50) |
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(1,158) |
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(9,936) |
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(14,853) |
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(11,195) |
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Net income attributable to Vornado |
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864,852 |
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475,971 |
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617,260 |
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662,302 |
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647,883 |
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Preferred share dividends |
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(81,464) |
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(82,807) |
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(76,937) |
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(65,531) |
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(55,534) |
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Preferred unit and share redemptions |
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- |
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(1,130) |
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8,948 |
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5,000 |
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4,382 |
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Net income attributable to common shareholders |
$ |
783,388 |
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$ |
392,034 |
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$ |
549,271 |
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$ |
601,771 |
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$ |
596,731 |
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Per Share Data: |
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Income (loss) from continuing operations, net - basic |
$ |
1.24 |
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$ |
(0.74) |
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$ |
1.38 |
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$ |
1.81 |
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$ |
2.47 |
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Income (loss) from continuing operations, net - diluted |
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1.23 |
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(0.74) |
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1.38 |
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1.79 |
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2.45 |
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Net income per common share - basic |
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4.18 |
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2.10 |
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2.95 |
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3.26 |
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3.27 |
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Net income per common share - diluted |
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4.15 |
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2.09 |
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2.94 |
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3.23 |
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3.24 |
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Dividends per common share |
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2.92 |
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2.92 |
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3.76 |
(1) |
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2.76 |
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2.60 |
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Balance Sheet Data: |
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Total assets |
$ |
21,248,320 |
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$ |
20,097,224 |
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$ |
22,065,049 |
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$ |
20,446,487 |
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$ |
20,517,471 |
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Real estate, at cost |
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16,822,358 |
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15,392,968 |
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15,287,078 |
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13,383,927 |
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13,140,535 |
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Accumulated depreciation |
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(3,161,633) |
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(2,829,862) |
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(2,524,718) |
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(2,346,498) |
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(2,045,122) |
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Debt |
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9,610,324 |
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8,777,956 |
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9,790,816 |
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8,436,085 |
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8,760,554 |
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Total equity |
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7,489,382 |
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7,594,744 |
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7,904,144 |
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7,508,447 |
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6,830,405 |
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(1) Includes a special long-term capital gain dividend of $1.00 per share. |
ITEM 6. SELECTED FINANCIAL DATA - CONTINUED |
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Year Ended December 31, |
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(Amounts in thousands) |
2014 |
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2013 |
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2012 |
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2011 |
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2010 |
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Other Data: |
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Funds From Operations ("FFO")(1): |
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Net income attributable to Vornado |
$ |
864,852 |
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$ |
475,971 |
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$ |
617,260 |
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$ |
662,302 |
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$ |
647,883 |
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Depreciation and amortization of real property |
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517,493 |
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501,753 |
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504,407 |
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530,113 |
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505,806 |
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Net gains on sale of real estate |
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(507,192) |
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(411,593) |
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(245,799) |
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(51,623) |
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(57,248) |
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Real estate impairment losses |
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26,518 |
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37,170 |
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129,964 |
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28,799 |
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97,500 |
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Proportionate share of adjustments to equity in net |
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(loss) income of Toys, to arrive at FFO: |
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Depreciation and amortization of real property |
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21,579 |
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69,741 |
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68,483 |
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70,883 |
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70,174 |
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Net gains on sale of real estate |
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(760) |
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- |
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- |
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(491) |
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- |
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Real estate impairment losses |
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- |
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6,552 |
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9,824 |
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- |
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- |
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Income tax effect of above adjustments |
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(7,287) |
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(26,703) |
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(27,493) |
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(24,634) |
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(24,561) |
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Proportionate share of adjustments to equity in net income of |
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partially owned entities, excluding Toys, to arrive at FFO: |
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Depreciation and amortization of real property |
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96,187 |
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87,529 |
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86,197 |
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99,992 |
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78,151 |
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Net gains on sale of real estate |
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(10,820) |
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(465) |
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(241,602) |
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(9,276) |
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(5,784) |
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Real estate impairment losses |
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- |
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- |
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1,849 |
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- |
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11,481 |
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Noncontrolling interests' share of above adjustments |
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(8,073) |
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(15,089) |
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(16,649) |
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(40,957) |
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(46,794) |
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FFO attributable to Vornado |
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992,497 |
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724,866 |
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886,441 |
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1,265,108 |
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1,276,608 |
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Preferred share dividends |
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(81,464) |
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(82,807) |
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(76,937) |
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(65,531) |
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(55,534) |
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Preferred unit and share redemptions |
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- |
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(1,130) |
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8,948 |
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5,000 |
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4,382 |
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FFO attributable to common shareholders |
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911,033 |
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640,929 |
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818,452 |
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1,204,577 |
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1,225,456 |
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Convertible preferred share dividends |
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97 |
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|
108 |
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|
113 |
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|
124 |
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|
160 |
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Interest on 3.88% exchangeable senior debentures |
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- |
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- |
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- |
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26,272 |
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25,917 |
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FFO attributable to common shareholders |
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plus assumed conversions(1) |
$ |
911,130 |
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$ |
641,037 |
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$ |
818,565 |
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$ |
1,230,973 |
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$ |
1,251,533 |
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(1) 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 gain from sales of depreciated real estate assets, real estate impairment losses, depreciation and amortization expense from real estate assets, extraordinary items and other specified non-cash items, including the pro rata share of such adjustments of unconsolidated subsidiaries. FFO and FFO per diluted share are 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 flows as a liquidity measure. FFO may not be comparable to similarly titled measures employed by other companies.
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