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 – August 1, 2016

 

Vornado Announces Second Quarter 2016 Financial Results

 

NEW YORK.......VORNADO REALTY TRUST (New York Stock Exchange: VNO) filed its Form 10-Q for the quarter ended June 30, 2016 today and reported:

 

Quarter Ended June 30, 2016 Financial Results

 

NET INCOME attributable to common shareholders for the quarter ended June 30, 2016 was $220.5 million, or $1.16 per diluted share, compared to $165.7 million, or $0.87 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 June 30, 2016 and 2015 was $72.5 million and $89.1 million, or $0.38 and $0.47 per diluted share, respectively.

 

FUNDS FROM OPERATIONS attributable to common shareholders plus assumed conversions (“FFO”) for the quarter ended June 30, 2016 was $229.4 million, or $1.21 per diluted share, compared to $323.4 million, or $1.71 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 June 30, 2016 and 2015 was $233.0 million and $238.6 million, or $1.23 and $1.26 per diluted share, respectively.

 

 

Six Months Ended June 30, 2016 Financial Results

 

NET INCOME attributable to common shareholders for the six months ended June 30, 2016 was $106.3 million, or $0.56 per diluted share, compared to $250.2 million, or $1.32 per diluted share, for the six months ended June 30, 2015.  Adjusting net income attributable to common shareholders for the items listed in the table on the following page, net income attributable to common shareholders for the six months ended June 30, 2016 and 2015 was $115.2 million and $150.0 million, or $0.61 and $0.79 per diluted share, respectively.

 

FFO for the six months ended June 30, 2016 was $433.1 million, or $2.28 per diluted share, compared to $544.3 million, or $2.87 per diluted share, for the prior year’s six months.  Adjusting FFO for the items listed in the table on the following page, FFO for the six months ended June 30, 2016 and 2015 was $438.3 million and $441.3 million, or $2.31 and $2.33 per diluted share, respectively.

 

 

Supplemental Financial Information

 

Further details regarding results of operations, properties and tenants can be accessed at the Company’s website www.vno.com.  Vornado Realty Trust is a fully – integrated equity real estate investment trust.

 

Certain statements contained herein may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995.  Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements.  For a discussion of factors that could materially affect the outcome of our forward-looking statements and our future results and financial condition, see “Risk Factors” in Part I, Item 1A, of our Annual Report on Form 10-K, as amended, for the year ended December 31, 2015.  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 and FFO to FFO, as adjusted:

 

(Amounts in thousands, except per share amounts)

For the Three Months Ended

 

For the Six Months Ended

 

June 30,

 

June 30,

 

 

 

2016

 

2015

 

2016

 

2015

Net income attributable to common shareholders

$

220,463

 

$

165,651

 

$

106,300

 

$

250,244

 

Per diluted share

$

1.16

 

$

0.87

 

$

0.56

 

$

1.32

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Items that impact net income attributable to common shareholders:

 

 

 

 

 

 

 

 

 

 

 

 

Net gains on sale of real estate and residential condominiums

$

159,830

 

$

4,513

 

$

160,544

 

$

17,240

 

Net income from discontinued operations and sold properties

 

3,671

 

 

5,168

 

 

5,316

 

 

17,006

 

Acquisition and transaction related costs

 

(2,904)

 

 

(4,061)

 

 

(7,511)

 

 

(6,042)

 

Default interest on Skyline properties mortgage loan

 

(2,711)

 

 

-

 

 

(2,711)

 

 

-

 

Real estate impairment losses

 

(49)

 

 

(14,806)

 

 

(165,102)

 

 

(15,062)

 

Reversal of allowance for deferred tax assets (re: taxable

 

 

 

 

 

 

 

 

 

 

 

 

 

REIT subsidiary's ability to utilize NOLs)

 

-

 

 

90,030

 

 

-

 

 

90,030

 

Other

 

-

 

 

433

 

 

-

 

 

3,154

 

 

 

 

157,837

 

 

81,277

 

 

(9,464)

 

 

106,326

Noncontrolling interests' share of above adjustments

 

(9,837)

 

 

(4,754)

 

 

580

 

 

(6,119)

Items that impact net income attributable to common shareholders, net

$

148,000

 

$

76,523

 

$

(8,884)

 

$

100,207

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income attributable to common shareholders, as adjusted

$

72,463

 

$

89,128

 

$

115,184

 

$

150,037

 

Per diluted share

$

0.38

 

$

0.47

 

$

0.61

 

$

0.79



FFO (1)

$

229,432

 

$

323,381

 

$

433,104

 

$

544,305

 

Per diluted share

$

1.21

 

$

1.71

 

$

2.28

 

$

2.87

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Items that impact FFO:

 

 

 

 

 

 

 

 

 

 

 

 

Acquisition and transaction related costs

$

(2,904)

 

$

(4,061)

 

$

(7,511)

 

$

(6,042)

 

Default interest on Skyline properties mortgage loan

 

(2,711)

 

 

-

 

 

(2,711)

 

 

-

 

FFO from discontinued operations and sold properties

 

1,794

 

 

8,201

 

 

3,957

 

 

24,796

 

Reversal of allowance for deferred tax assets (re: taxable

 

 

 

 

 

 

 

 

 

 

 

 

 

REIT subsidiary's ability to utilize NOLs)

 

-

 

 

90,030

 

 

-

 

 

90,030

 

Our share of impairment loss on India real estate venture's

 

 

 

 

 

 

 

 

 

 

 

 

 

non-depreciable real estate

 

-

 

 

(4,502)

 

 

-

 

 

(4,502)

 

Net gain on sale of residential condominiums

 

-

 

 

-

 

 

714

 

 

1,860

 

Other

 

-

 

 

433

 

 

-

 

 

3,154

 

 

 

 

(3,821)

 

 

90,101

 

 

(5,551)

 

 

109,296

Noncontrolling interests' share of above adjustments

 

238

 

 

(5,270)

 

 

339

 

 

(6,290)

Items that impact FFO, net

$

(3,583)

 

$

84,831

 

$

(5,212)

 

$

103,006

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FFO, as adjusted

$

233,015

 

$

238,550

 

$

438,316

 

$

441,299

 

Per diluted share

$

1.23

 

$

1.26

 

$

2.31

 

$

2.33

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1)

See page 4 for a reconciliation of our net income to FFO for the three and six months ended June 30, 2016 and 2015.

2

 

 
 

 

VORNADO REALTY TRUST

OPERATING RESULTS FOR THE THREE AND SIX MONTHS ENDED

JUNE 30, 2016 AND 2015

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Amounts in thousands, except per share amounts)

For the Three Months Ended

 

For the Six Months Ended

 

June 30,

 

June 30,

 

 

 

 

2016

 

2015

 

2016

 

2015

Revenues

$

621,708

 

$

616,288

 

$

1,234,745

 

$

1,223,090

 

 

 

 

 

 

 

 

 

 

 

 

Income from continuing operations

$

265,907

 

$

215,764

 

$

173,583

 

$

324,831

Income (loss) from discontinued operations

 

2,475

 

 

(364)

 

 

3,191

 

 

15,815

Net income

 

268,382

 

 

215,400

 

 

176,774

 

 

340,646

Less net income attributable to noncontrolling interests in:

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated subsidiaries

 

(13,025)

 

 

(19,186)

 

 

(22,703)

 

 

(35,068)

 

Operating Partnership

 

(14,531)

 

 

(10,198)

 

 

(7,044)

 

 

(15,485)

Net income attributable to Vornado

 

240,826

 

 

186,016

 

 

147,027

 

 

290,093

Preferred share dividends

 

(20,363)

 

 

(20,365)

 

 

(40,727)

 

 

(39,849)

Net income attributable to common shareholders

$

220,463

 

$

165,651

 

$

106,300

 

$

250,244

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income per common share - Basic:

 

 

 

 

 

 

 

 

 

 

 

 

Income from continuing operations, net

$

1.16

 

$

0.88

 

$

0.54

 

$

1.25

 

Income from discontinued operations, net

 

0.01

 

 

-

 

 

0.02

 

 

0.08

 

Net income per common share

$

1.17

 

$

0.88

 

$

0.56

 

$

1.33

 

Weighted average shares outstanding

 

188,772

 

 

188,365

 

 

188,715

 

 

188,183

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income per common share - Diluted:

 

 

 

 

 

 

 

 

 

 

 

 

Income from continuing operations, net

$

1.15

 

$

0.87

 

$

0.54

 

$

1.24

 

Income from discontinued operations, net

 

0.01

 

 

-

 

 

0.02

 

 

0.08

 

Net income per common share

$

1.16

 

$

0.87

 

$

0.56

 

$

1.32

 

Weighted average shares outstanding

 

189,885

 

 

189,600

 

 

190,000

 

 

189,775

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FFO

$

229,432

 

$

323,381

 

$

433,104

 

$

544,305

 

Per diluted share

$

1.21

 

$

1.71

 

$

2.28

 

$

2.87

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FFO, as adjusted

$

233,015

 

$

238,550

 

$

438,316

 

$

441,299

 

Per diluted share

$

1.23

 

$

1.26

 

$

2.31

 

$

2.33

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares used in determining FFO per diluted share

 

189,885

 

 

189,600

 

 

190,043

 

 

189,775

3

 

 
 

 

The following table reconciles our net income to FFO:

(Amounts in thousands, except per share amounts)

For the Three Months Ended

 

For the Six Months Ended

 

 

 

June 30,

 

June 30,

 

 

 

2016

 

2015

 

2016

 

2015

Net income attributable to common shareholders

$

220,463

 

$

165,651

 

$

106,300

 

$

250,244

 

Per diluted share

$

1.16

 

$

0.87

 

$

0.56

 

$

1.32

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FFO adjustments:

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization of real property

$

133,218

 

$

129,296

 

$

267,339

 

$

247,552

Net gains on sale of real estate

 

(161,721)

 

 

-

 

 

(161,721)

 

 

(10,867)

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

 

38,308

 

 

32,282

 

 

77,354

 

 

68,554

 

 

Net gains on sale of real estate

 

(319)

 

 

(4,513)

 

 

(319)

 

 

(4,513)

 

 

Real estate impairment losses

 

49

 

 

10,304

 

 

4,402

 

 

10,304

 

 

 

 

9,535

 

 

167,369

 

 

347,755

 

 

311,286

Noncontrolling interests' share of above adjustments

 

(588)

 

 

(9,662)

 

 

(21,469)

 

 

(18,109)

FFO adjustments, net

$

8,947

 

$

157,707

 

$

326,286

 

$

293,177

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FFO attributable to common shareholders

$

229,410

 

$

323,358

 

$

432,586

 

$

543,421

Convertible preferred share dividends

 

22

 

 

23

 

 

43

 

 

46

Earnings allocated to Out-Performance Plan units

 

-

 

 

-

 

 

475

 

 

838

FFO attributable to common shareholders plus assumed conversions

$

229,432

 

$

323,381

 

$

433,104

 

$

544,305

 

Per diluted share

$

1.21

 

$

1.71

 

$

2.28

 

$

2.87

 

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 net income and should not be considered an alternative to net income as a performance 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 2 of this press release.

 

 

Conference Call and Audio Webcast

 

As previously announced, the Company will host a quarterly earnings conference call and an audio webcast on Tuesday, August 2, 2016 at 10:00 a.m. Eastern Time (ET).  The conference call can be accessed by dialing 888-771-4371 (domestic) or 847-585-4405 (international) and indicating to the operator the passcode 42972201.  A telephonic replay of the conference call will be available from 1:00 p.m. ET on August 2, 2016 through September 1, 2016.  To access the replay, please dial 888-843-7419 and enter the passcode 42972201#.  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.

 

 

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