EXHIBIT 99.2

SUPPLEMENTAL OPERATING

AND FINANCIAL DATA

For the Year Ended December 31, 2016

 

 

INDEX
	Page
Investor Information	3
2016 Business Developments	4 - 6
Common Shares Data	7
Financial Highlights	8
Net Asset Value	9 - 10
Funds From Operations	11
Net Income, as Adjusted	12
Funds From Operations, as Adjusted	13
Funds Available for Distribution	14
Net Income/EBITDA (Consolidated and by Segment)	15 - 21
EBITDA by Segment and Region	22
Consolidated Balance Sheets	23
Capital Structure	24
Debt Analysis	25 - 27
Unconsolidated Joint Ventures	28 - 30
Square Footage	31
Top 30 Tenants	32
Lease Expirations	33 - 34
Leasing Activity	35 - 37
Occupancy, Same Store EBITDA and Residential Statistics	38
Development/Redevelopment Summary	39
Capital Expenditures	40 - 43
Property Table	44 - 57

Certain statements contained herein constitute forward-looking statements as such term is defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended.  Forward-looking statements are not guarantees of performance.  They represent our intentions, plans, expectations and beliefs and are subject to numerous assumptions, risks and uncertainties.  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 supplemental package.  We also note the following forward-looking statements: in the case of our development and redevelopment projects, the estimated completion date, estimated project cost and cost to complete; and estimates of future capital expenditures, dividends to common and preferred shareholders and operating partnership distributions. Many of the factors that will determine the outcome of these and our other forward-looking statements are beyond our ability to control or predict.  For further discussion of factors that could materially affect the outcome of our forward-looking statements, see “Item 1A. Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2016. For these statements, we claim the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. You are cautioned not to place undue reliance on our forward-looking statements, which speak only as of the date of this supplemental package.  All subsequent written and oral forward-looking statements attributable to us or any person acting on our behalf are expressly qualified in their entirety by the cautionary statements contained or referred to in this section. We do not undertake any obligation to release publicly any revisions to our forward-looking statements to reflect events or circumstances occurring after the date of our Annual Report on Form 10-K, or Quarterly Report on Form 10-Q, as applicable, and this supplemental package.

 

INVESTOR INFORMATION
Executive Officers:
Steven Roth	Chairman of the Board and Chief Executive Officer
David R. Greenbaum	President - New York Division
Mitchell N. Schear	President - Washington, DC Division
Michael J. Franco	Executive Vice President - Chief Investment Officer
Joseph Macnow	Executive Vice President - Finance and Chief Administrative Officer
Stephen W. Theriot	Chief Financial Officer
RESEARCH COVERAGE - EQUITY
James Feldman/Scott Freitag		Brad K. Burke	John W. Guinee/Erin T. Aslakson
Bank of America/Merrill Lynch		Goldman Sachs	Stifel Nicolaus & Company
646-855-5808/646-855-3197		917-343-2082	443-224-1307/443-224-1350
Ross Smotrich/Peter Siciliano		Jed Reagan/Daniel Ismail	Michael Lewis
Barclays Capital		Green Street Advisors	SunTrust Robinson Humphrey
212-526-2306/212-526-3098		949-640-8780	212-319-5659
Michael Bilerman/Emmanuel Korchman		Anthony Paolone/Gene Nusinzon	Nick Yulico/Frank Lee
Citi		JP Morgan	UBS
212-816-1383/212-816-1382		212-622-6682/212-633-1041	212-713-3402/415-352-5679
Vincent Chao		Vikram Malhotra/Sumit Sharma
Deutsche Bank		Morgan Stanley
212-250-6799		212-761-7064/212-761-7567
Steve Sakwa/Robert Simone		Alexander Goldfarb/Daniel Santos
Evercore ISI		Sandler O'Neill
212-446-9462/212-446-9459		212-466-7937/212-466-7927
RESEARCH COVERAGE - DEBT
Scott Frost		Robert Haines/Craig Guttenplan	Thierry Perrein
Bank of America/Merrill Lynch		CreditSights	Wells Fargo Securities
646-855-8078		212-340-3835/212-340-3859	704-715-8455
Peter Troisi		Ron Perrotta
Barclays Capital		Goldman Sachs
212-412-3695		212-902-7885
Thomas Cook		Mark Streeter
Citi		JP Morgan
212-723-1112		212-834-5086
This information is provided as a service to interested parties and not as an endorsement of any report, or representation as to the accuracy of any information contained therein. Opinions, forecasts and other forward-looking statements expressed in analysts' reports are subject to change without notice.

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2016 BUSINESS DEVELOPMENTS

Washington, DC Spin-off

On October 31, 2016, Vornado’s Board of Trustees approved the tax-free spin-off of our Washington, DC segment and we entered into a definitive agreement to merge it with the business and certain select assets of The JBG Companies (“JBG”), a Washington, DC real estate company.  Steven Roth, the Chairman of the Board of Trustees and Chief Executive Officer of Vornado, will be Chairman of the Board of Trustees of the new company, which will be named JBG SMITH Properties.  Mitchell Schear, President of our Washington, DC business, will be a member of the Board of Trustees of the new company.  The pro rata distribution to Vornado common shareholders and Class A Operating Partnership unitholders is intended to be treated as a tax-free spin-off for U.S. federal income tax purposes. It is expected to be made on a pro rata 1:2 basis.  The initial Form 10 registration statement relating to the spin-off and merger was filed with the SEC on January 23, 2017 and the distribution and combination are expected to be completed in the second quarter of 2017. The distribution and combination are subject to certain conditions, including the SEC declaring the Form 10 registration statement effective, filing and approval of the new company’s listing application, receipt of regulatory approvals and third party consents by each of the Company and JBG, and formal declaration of the distribution by Vornado’s Board of Trustees. The distribution and combination are not subject to a vote by Vornado’s shareholders or Operating Partnership unitholders. Vornado’s Board of Trustees has approved the transaction.  JBG has obtained all requisite approvals from its investment funds for this transaction.  There can be no assurance that this transaction will be completed.

Investment Activities

On March 17, 2016, we entered into a joint venture, in which we own a 33.3% interest, which owns a $150,000,000 mezzanine loan with an interest rate of LIBOR plus 8.88% and an initial maturity date in November 2016, with two three-month extension options.  On November 9, 2016, the mezzanine loan was extended to May 2017 with an interest rate of LIBOR plus 9.42% (10.08% at December 31, 2016) during the extension period.  As of December 31, 2016, the joint venture has fully funded its commitments.  The joint venture’s investment is subordinate to $350,000,000 of third party debt.  We account for our investment in the joint venture under the equity method.

On May 20, 2016, we contributed $19,650,000 for a 50.0% equity interest in a joint venture that will develop 606 Broadway, a 34,000 square foot office and retail building, located on Houston Street in Manhattan.  The development cost of this project is estimated to be approximately $104,000,000.  At closing, the joint venture obtained a $65,000,000 construction loan, of which approximately $25,800,000was outstanding at December 31, 2016.  The loan, which bears interest at LIBOR plus 3.00% (3.66% at December 31, 2016), matures in May 2019 with two one-year extension options.  Because this joint venture is a VIE and we determined we are the primary beneficiary, we consolidate the accounts of this joint venture from the date of our investment.

Dispositions

On May 27, 2016, we sold a 47% ownership interest in 7 West 34th Street, a 479,000 square foot Manhattan office building leased to Amazon, and retained the remaining 53% interest.  This transaction was based on a property value of approximately $561,000,000 or $1,176 per square foot.  We received net proceeds of $127,382,000 from the sale and realized a net gain of $203,324,000, of which $159,511,000 was recognized in the second quarter of 2016 and is included in “net gain on disposition of wholly owned and partially owned assets” in our consolidated statements of income.  The remaining net gain of $43,813,000 has been deferred until our guarantee of payment of loan principal and interest is removed or the loan is repaid.  We realized a net tax gain of $90,017,000.   We continue to manage and lease the property.  We share control over major decisions with our joint venture partner.  Accordingly, this property is accounted for under the equity method from the date of sale.

On December 19, 2016, we completed the sale of our 20% interest in Fairfax Square to our joint venture partner for $15,500,000, which resulted in a net gain of approximately $15,302,000.

On August 24, 2016, the Skyline properties, located in Fairfax, Virginia, were placed in receivership.  On December 21, 2016, the final disposition of the Skyline properties was completed by the receiver.  In connection therewith, the Skyline properties’ assets (approximately $236,535,000) and liabilities (approximately $724,412,000), were removed from our consolidated balance sheet which resulted in a net gain of $487,877,000.  There was no taxable income related to this transaction.

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2016 BUSINESS DEVELOPMENTS

Financing Activities

On February 8, 2016, we completed a $700,000,000 refinancing of 770 Broadway, a 1,158,000 square foot Manhattan office building.  The five-year loan is interest only at LIBOR plus 1.75% (2.40% at December 31, 2016), which was swapped for four and a half years to a fixed rate of 2.56%.  The Company realized net proceeds of approximately $330,000,000.  The property was previously encumbered by a 5.65%, $353,000,000 mortgage which was scheduled to mature in March 2016.

On March 7, 2016, the joint venture, in which we have a 55% ownership interest, completed a $300,000,000 refinancing of One Park Avenue, a 949,000 square foot Manhattan office building.  The loan matures in March 2021 and is interest only at LIBOR plus 1.75% (2.40% at December 31, 2016).  The property was previously encumbered by a 4.995%, $250,000,000 mortgage which matured in March 2016.

On May 6, 2016, the joint venture, in which we have a 55% ownership interest, completed a $273,000,000 refinancing of The Warner Building, a 622,000 square foot Washington, DC office building.  The loan matures in June 2023, has a fixed rate of 3.65%, is interest only for the first two years and amortizes based on a 30-year schedule beginning in year three. The property was previously encumbered by a 6.26%, $293,000,000 mortgage which matured in May 2016.

On May 11, 2016, the joint venture, in which we have a 50% ownership interest, completed a $900,000,000 refinancing of 280 Park Avenue, a 1,249,000 square foot Manhattan office building.  The three-year loan with four one-year extensions is interest only at LIBOR plus 2.00% (2.66% at December 31, 2016).  The property was previously encumbered by a 6.35%, $721,000,000 mortgage which was scheduled to mature in June 2016.

On May 16, 2016, we completed a $300,000,000 recourse financing of 7 West 34th Street.  The ten-year loan is interest only at a fixed rate of 3.65% and matures in June 2026.

On August 3, 2016, the joint venture, in which we have 49.9% ownership interest, completed an $80,000,000 refinancing of 50-70 West 93rd Street, a 326 unit Manhattan residential complex.  The three-year loan with two one-year extensions is interest only at LIBOR plus 1.70% (2.40% at December 31, 2016).  The property was previously encumbered by a $44,980,000 first mortgage at LIBOR plus 1.90% and an $18,481,000 second mortgage at LIBOR plus 1.65%, which were scheduled to mature in September 2016.

On September 1, 2016, we redeemed all of the outstanding 6.875% Series J cumulative redeemable preferred shares/units at their redemption price of $25.00 per share/unit, or $246,250,000 in the aggregate, plus accrued and unpaid dividends/distributions through the date of redemption.  In connection therewith, we expensed $7,408,000 of issuance costs, which reduced net income attributable to common shareholders and net income attributable to Class A unitholders in the twelve months ended December 31, 2016.  These costs had been initially recorded as a reduction of shareholders’ equity and partners’ capital.

On September 6, 2016, we completed a $675,000,000 refinancing of theMART, a 3,652,000 square foot commercial building in Chicago.  The five-year loan is interest only and has a fixed rate of 2.70%.  The Company realized net proceeds of approximately $124,000,000.  The property was previously encumbered by a 5.57%, $550,000,000 mortgage which was scheduled to mature in December 2016.

On November 7, 2016, we extended one of our two $1.25 billion unsecured revolving credit facilities from June 2017 to February 2021 with two six-month extension options.  The interest rate on the extended facility was lowered from LIBOR plus 115 basis points to LIBOR plus 100 basis points.  The facility fee remains unchanged at 20 basis points.

On December 2, 2016, we completed a $400,000,000 refinancing of 350 Park Avenue, a 571,000 square foot Manhattan office building.  The ten-year loan is interest only and has a fixed rate of 3.92%.  The Company realized net proceeds of approximately $111,000,000.  The property was previously encumbered by a 3.75%, $284,000,000 mortgage which was scheduled to mature in January 2017.

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2016 BUSINESS DEVELOPMENTS

Financing Activities – continued

61 Ninth Avenue

On December 21, 2016, the venture obtained a $90,000,000 construction loan. The loan matures in December 2020 with two six-month extension options. The interest rate is LIBOR plus 3.05%. As of December 31, 2016, there was nothing drawn on the loan.

Other Activities

Farley Post Office Redevelopment

In September 2016, a joint venture between the Related Companies and Vornado was designated by New York State to redevelop the historic Farley Post Office building. The building will include a new Moynihan Train Hall and approximately 850,000 rentable square feet of office space and ancillary train hall retail.  The joint venture will enter into a 99-year, triple-net lease and make a $230,000,000 contribution towards the construction of the train hall.  Total costs for the redevelopment of the office and retail space are yet to be determined.

85 Tenth Avenue

In 2007, we made $50,000,000 of junior and senior mezzanine loans to the owner of 85 Tenth Avenue, a 626,000 square foot Manhattan office building.  The loans were secured by equity interests in the property.  In connection with the loans, we received the right to acquire a 49.9% equity interest in the property upon repayment of the loans.  Pursuant to ASC 310-10-25-14, we accounted for our investment as an investment in real estate under the equity method.  In February 2013, through a joint venture with an affiliate of the owner of 85 Tenth Avenue, we invested an additional $14,583,000 in senior mezzanine loans.  In August 2014, we made an $8,413,000 preferred equity investment in the owner of 85 Tenth Avenue, bringing our total cash investment in 85 Tenth Owner to $72,996,000.

As of December 1, 2016, our share of the net losses of 85 Tenth Avenue reduced our basis to $30,936,000.  On December 1, 2016, the owner of 85 Tenth Avenue completed a 10-year, 4.55% $625,000,000 refinancing of the property and we received net proceeds of $191,779,000 in repayment of our existing loans and preferred equity investments.  We recognized $160,843,000 of income and no tax gain as a result of this transaction.  In conjunction with the repayment of the loans, we exercised our right to receive a 49.9% interest in the property, which we are accounting for under the equity method.

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COMMON SHARES DATA (NYSE: VNO)
(unaudited)
Vornado Realty Trust common shares are traded on the New York Stock Exchange ("NYSE") under the symbol VNO.  Below is a summary of performance and dividends for VNO common shares (based on NYSE prices):
		Fourth Quarter 2016		Third Quarter 2016		Second Quarter 2016		First Quarter 2016
High price		$	105.91	$	108.69	$	100.13	$	99.97
Low price		$	86.35	$	97.18	$	90.13	$	78.91
Closing price - end of quarter		$	104.37	$	101.21	$	100.12	$	94.43
Annualized dividend per share		$	2.52	$	2.52	$	2.52	$	2.52
Annualized dividend yield - on closing price			2.4%		2.5%		2.5%		2.7%
Outstanding shares, Class A units and convertible preferred units as converted,
	excluding stock options (in thousands)		201,823		201,816		201,760		201,763
Closing market value of outstanding shares, Class A units and convertible preferred
	units as converted, excluding stock options	$	21.1 Billion	$	20.4 Billion	$	20.2 Billion	$	19.1 Billion

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FINANCIAL HIGHLIGHTS
(unaudited and in thousands, except per share amounts)
This section includes non-GAAP financial measures, including Earnings Before Interest Taxes Depreciation and Amortization ("EBITDA"), Funds From Operations attributable to common shares plus assumed conversions ("FFO"), net income attributable to common shareholders, as adjusted, FFO, as adjusted, and Funds Available for Distribution ("FAD").  A description of these non-GAAP measures and reconciliations to the most directly comparable GAAP measures are provided on the pages that follow.
				Three Months Ended						Year Ended
				December 31,				September 30,		December 31,
				2016		2015		2016		2016		2015
	Total revenues			$	638,260	$	651,581	$	633,197	$	2,506,202	$	2,502,267
	Net income attributable to common shareholders			$	651,181	$	230,742	$	66,125	$	823,606	$	679,856
		Per common share:
			Basic	$	3.44	$	1.22	$	0.35	$	4.36	$	3.61
			Diluted	$	3.43	$	1.22	$	0.35	$	4.34	$	3.59
	Net income attributable to common shareholders, as adjusted			$	56,708	$	86,441	$	76,577	$	253,881	$	310,401
		Per diluted share		$	0.30	$	0.46	$	0.40	$	1.34	$	1.64
	FFO, as adjusted			$	214,738	$	238,059	$	235,379	$	886,803	$	900,877
		Per diluted share		$	1.13	$	1.26	$	1.24	$	4.66	$	4.75
	FFO			$	797,734	$	259,528	$	225,529	$	1,457,583	$	1,039,035
	FFO - Operating Partnership Basis ("OP Basis")			$	850,493	$	276,682	$	240,466	$	1,552,485	$	1,105,604
		Per diluted share		$	4.20	$	1.37	$	1.19	$	7.66	$	5.48
	Dividends per common share			$	0.63	$	0.63	$	0.63	$	2.52	$	2.52
	FFO payout ratio (based on FFO, as adjusted)				55.8%		50.0%		50.8%		54.1%		53.1%
	FAD payout ratio				112.5%		131.3%		92.6%		109.6%		88.1%
	Weighted average shares used in determining FFO per diluted share - REIT basis				190,108		189,688		190,090		190,173		189,564
	Convertible units:
		Class A			11,485		11,362		11,557		11,513		10,956
		D-13			484		482		459		499		476
		G1-G4			38		40		38		39		75
		Equity awards - unit equivalents			566		654		536		331		638
	Weighted average shares used in determining FFO per diluted share - OP Basis				202,681		202,226		202,680		202,555		201,709

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COMPONENTS OF NET ASSET VALUE (AT SHARE)
(unaudited and in millions, except per share amounts)
			Q4 2016 Annualized
										Incremental
				Non-cash						NOI		Pro-forma
		EBITDA,		Adjustments		Add-back:		Cash NOI,		from Signed		Cash
		as Adjusted		& Other(1)		G&A(2)		as Adjusted		Leases (3)		NOI			Cap Rate	Value
New York - Office		$	682	$	(133)	$	33	$	582	$	92	$	674		4.50%	$	14,978
New York - Retail			390		(56)		-		334		9		343		3.75%		9,147
New York - Residential			25		(3)		-		22		-		22		3.50%		629
theMART			85		-		6		91		12		103		5.00%		2,060
555 California Street			43		(7)		-		36		1		37	(4)	N/A		1,260
Total Vornado		$	1,225	$	(199)	$	39	$	1,065	$	114	$	1,179			$	28,074
Washington, DC Segment (at JBG SMITH Properties transaction value)																$	5,997
Other Asset Values:
Cash, restricted cash and marketable securities																$	1,768
220 CPS - incremental value after repayment of debt and taxes															900
Less: Dividends paid to common shareholders															(100)
																	800
ALX - 1,654,000 shares at $427 per share (as of December 31, 2016)																	706
Hotel Pennsylvania																	500
85 Tenth Avenue (VNO's 49.9% share at fair value)																	417
BMS (annualized Q4 2016 EBITDA of $25 at a 7.0x multiple)																	175
UE - 5,717,000 shares at $28 per share (as of December 31, 2016)																	157
Real estate fund investments (VNO's share at fair value)																	146
PEI - 6,250,000 shares at $19 per share (as of December 31, 2016)																	119
Other assets																	800
Other construction in progress (at 110% of book value)																	133
Total other asset values																$	5,721
Liabilities (see following page)																$	12,434
NAV																$	27,358
NAV per share
	(202.2 million weighted average OP basis shares)															$	135
See notes on following page

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COMPONENTS OF NET ASSET VALUE (AT SHARE)
(unaudited and in millions)
		Liabilities
		Q4 2016			Adjustments			Net
Consolidated contractual mortgage notes payable, net of noncontrolling interests' share		$	8,719		$	(950)	(5)	$	7,769
Non-consolidated real estate debt			2,682	(6)		(691)	(7)		1,991
Corporate unsecured debt			850			-			850
Revolver/term loan			491			(375)	(8)		116
Other liabilities			764			(240)	(9)		524
Perpetual preferred (at redemption value)			1,075			-			1,075
Capital required for leases			-			109			109
Total Liabilities		$	14,581		$	(2,147)		$	12,434
(1)	Annualized straight-line rent adjustments, acquired below market leases non-cash income (FAS 141) and amortization expense, inclusive of our share of unconsolidated joint ventures and elimination of non-cash EBITDA from 666 Fifth Avenue - Office.
(2)	Corporate G&A for the New York segment is reflected in New York Office (i.e., not allocated to Retail or Residential).
(3)	Represents remaining portion of the $200 million of incremental NOI from signed leases as disclosed on our first quarter earnings call. These amounts exclude Washington, DC and the portion related to the sale of a 47% interest in 7 West 34th Street.
(4)	Excludes incremental NOI from the lease-up of 315 and 345 Montgomery Street.
(5)	220 Central Park South debt.
(6)	Excludes our share of debt of ALX, UE & PEI as they are presented on an equity basis in other asset values.
(7)	666 Fifth Avenue – Office.
(8)	220 Central Park South delayed-draw term loan outstanding balance.
(9)	1535 Broadway capital lease obligation of $240 which will be offset by the incremental value from purchasing the fee from Host Hotels & Resorts in the future.

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RECONCILIATION OF NET INCOME TO FFO (1)
(unaudited and in thousands, except per share amounts)
				Three Months Ended						Year Ended
				December 31,				September 30,		December 31,
				2016		2015		2016		2016		2015
Reconciliation of our net income to FFO:
	Net income attributable to common shareholders			$	651,181	$	230,742	$	66,125	$	823,606	$	679,856
		Per diluted share		$	3.43	$	1.22	$	0.35	$	4.34	$	3.59
	FFO adjustments:
	Depreciation and amortization of real property			$	133,389	$	131,910	$	130,892	$	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		40,281		154,795		143,960
			Net gains on sale of real estate		(12)		-		(2,522)		(2,853)		(4,513)
			Real estate impairment losses		792		4,141		1,134		6,328		16,758
					156,027		30,633		169,785		673,567		381,429
	Noncontrolling interests' share of above adjustments				(9,495)		(1,869)		(10,403)		(41,267)		(22,342)
	FFO adjustments, net			$	146,532	$	28,764	$	159,382	$	632,300	$	359,087
	FFO attributable to common shareholders			$	797,713	$	259,506	$	225,507	$	1,455,906	$	1,038,943
	Convertible preferred share dividends				21		22		22		86		92
	Earnings allocated to Out-Performance Plan units				-		-		-		1,591		-
	FFO attributable to common shareholders plus assumed conversions				797,734		259,528		225,529		1,457,583		1,039,035
	Add back of income allocated to noncontrolling interests of the
		Operating Partnership			52,759		17,154		14,937		94,902		66,569
	FFO - OP Basis (1)			$	850,493	$	276,682	$	240,466	$	1,552,485	$	1,105,604
	FFO per diluted share (1)			$	4.20	$	1.37	$	1.19	$	7.66	$	5.48
(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 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.

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RECONCILIATION OF NET INCOME TO NET INCOME, AS ADJUSTED
(unaudited and in thousands, except per share amounts)
				Three Months Ended						Year Ended
				December 31,				September 30,		December 31,
				2016		2015		2016		2016		2015
Net income attributable to common shareholders			(A)	$	651,181	$	230,742	$	66,125	$	823,606	$	679,856
	Per diluted share			$	3.43	$	1.22	$	0.35	$	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)		(3,808)		(26,037)		(12,511)
	Default interest on Skyline properties mortgage loan				(2,480)		-		(2,632)		(7,823)		-
	Net (loss) income from discontinued operations and sold properties				(117)		13,943		962		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
	Preferred share issuance costs (Series J redemption)				-		-		(7,408)		(7,408)		-
	Skyline properties impairment loss				-		-		-		(160,700)		-
	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)		(1,134)		(20,290)		(21,260)
		Net gains on sale of real estate			13		-		2,522		2,854		4,513
	Other				208		1,671		-		183		3,004
					632,149		153,446		(11,498)		606,756		392,036
Noncontrolling interests' share of above adjustments					(37,676)		(9,145)		1,046		(37,031)		(22,581)
Certain items that impact net income attributable to common shareholders, net			(B)	$	594,473	$	144,301	$	(10,452)	$	569,725	$	369,455
	Per diluted share			$	3.13	$	0.76	$	(0.05)	$	3.00	$	1.95
Net income attributable to common shareholders, as adjusted			(A-B)	$	56,708	$	86,441	$	76,577	$	253,881	$	310,401
	Per diluted share			$	0.30	$	0.46	$	0.40	$	1.34	$	1.64

- 12 -

 

RECONCILIATION OF FFO TO FFO, AS ADJUSTED
(unaudited and in thousands, except per share amounts)
				Three Months Ended						Year Ended
				December 31,				September 30,		December 31,
				2016		2015		2016		2016		2015
FFO attributable to common shareholders plus assumed conversions			(A)	$	797,734	$	259,528	$	225,529	$	1,457,583	$	1,039,035
	Per diluted share			$	4.20	$	1.37	$	1.19	$	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)		(3,808)		(26,037)		(12,511)
	Default interest on Skyline properties mortgage loan				(2,480)		-		(2,632)		(7,823)		-
	FFO from discontinued operations and sold properties				2,202		22,137		3,372		11,923		64,263
	Net gain on sale of residential condominiums				-		4,231		-		714		6,724
	Preferred share issuance costs (Series J redemption)				-		-		(7,408)		(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		(10,476)		606,310		147,008
Noncontrolling interests' share of above adjustments					(36,949)		(1,619)		626		(35,530)		(8,850)
Certain items that impact FFO, net			(B)	$	582,996	$	21,469	$	(9,850)	$	570,780	$	138,158
	Per diluted share			$	3.07	$	0.11	$	(0.05)	$	3.00	$	0.73
FFO, as adjusted			(A-B)	$	214,738	$	238,059	$	235,379	$	886,803	$	900,877
	Per diluted share			$	1.13	$	1.26	$	1.24	$	4.66	$	4.75

- 13 -

 

RECONCILIATION OF FFO TO FAD(1)
(unaudited and in thousands, except per share amounts)
				Three Months Ended						Year Ended
				December 31,				September 30,		December 31,
				2016		2015		2016		2016		2015
FFO attributable to common shareholders plus assumed conversions			(A)	$	797,734	$	259,528	$	225,529	$	1,457,583	$	1,039,035
Adjustments to arrive at FAD:
	Adjustments to FFO per page 13,
		excluding FFO attributable to discontinued operations and sold properties			617,743		951		(13,848)		594,387		82,745
	Recurring tenant improvements, leasing commissions and other capital expenditures				124,014		109,889		87,090		386,733		277,438
	Straight-line rentals				27,827		45,158		34,915		146,787		153,540
	Carried interest and our share of net unrealized (loss) gain
		from real estate fund investments			(27,583)		9,222		(97)		(18,944)		18,950
	Amortization of acquired below-market leases, net				11,068		32,677		11,410		51,370		76,917
	Amortization of debt issuance costs				(8,402)		(9,344)		(8,539)		(34,714)		(32,161)
	Stock-based compensation expense				(6,077)		(6,518)		(6,117)		(33,980)		(39,846)
	Non real estate depreciation				(2,522)		(1,548)		(1,447)		(7,799)		(8,699)
	Noncontrolling interests' share of above adjustments				(43,878)		(11,190)		(6,183)		(63,562)		(31,844)
			(B)		692,190		169,297		97,184		1,020,278		497,040
FAD(1)			(A-B)	$	105,544	$	90,231	$	128,345	$	437,305	$	541,995
FAD payout ratio(2)					112.5%		131.3%		92.6%		109.6%		88.1%
(1)	FAD is defined as FFO less (i) cash basis recurring tenant improvements, leasing commissions and capital expenditures, (ii) straight-line rents and amortization of acquired below-market leases, net, and (iii) other non-cash income, plus (iv) other non-cash charges.  FAD is a non-GAAP financial measure that is not intended to represent cash flow and is not indicative of cash flow provided by operating activities as determined in accordance with GAAP. FAD is presented solely as a supplemental disclosure that management believes provides useful information regarding the Company's ability to fund its dividends.
(2)	FAD payout ratios on a quarterly basis are not necessarily indicative of amounts for the full year due to fluctuation in timing of cash based expenditures, the commencement of new leases and the seasonality of our operations.

- 14 -

 

CONSOLIDATED NET INCOME/EBITDA (1)
(unaudited and in thousands)
		Three Months Ended
		December 31,						September 30,
		2016		2015		Inc (Dec)		2016
Property rentals		$	493,545	$	456,839	$	36,706	$	477,215
Straight-line rent adjustments			27,989		45,158		(17,169)		34,915
Amortization of acquired below-market leases, net			11,526		33,135		(21,609)		11,868
Total property rentals			533,060		535,132		(2,072)		523,998
Tenant expense reimbursements			68,826		64,742		4,084		71,425
Fee and other income:
	BMS cleaning fees		21,160		19,176		1,984		20,820
	Management and leasing fees		4,844		4,320		524		6,644
	Lease termination fees		1,794		19,076		(17,282)		2,118
	Other income		8,576		9,135		(559)		8,192
Total revenues			638,260		651,581		(13,321)		633,197
Operating expenses			262,023		257,505		4,518		260,826
Depreciation and amortization			141,821		139,953		1,868		138,968
General and administrative			44,569		41,469		3,100		40,442
Acquisition and transaction related costs			14,743		4,951		9,792		3,808
Total expenses			463,156		443,878		19,278		444,044
Operating income			175,104		207,703		(32,599)		189,153
Income (loss) from partially owned entities			164,860		(3,921)		168,781		4,127
(Loss) income from real estate fund investments			(52,352)		21,959		(74,311)		1,077
Interest and other investment income, net			9,284		7,360		1,924		6,508
Interest and debt expense			(98,244)		(98,915)		671		(98,365)
Net gain on extinguishment of Skyline properties debt			487,877		-		487,877		-
Net gain on disposition of wholly owned and partially owned assets			15,510		146,924		(131,414)		-
Income before income taxes			702,039		281,110		420,929		102,500
Income tax benefit (expense)			1,493		450		1,043		(4,865)
Income from continuing operations			703,532		281,560		421,972		97,635
Income from discontinued operations			1,012		1,984		(972)		2,969
Net income			704,544		283,544		421,000		100,604
Less net loss (income) attributable to noncontrolling interests in consolidated subsidiaries			5,010		(17,395)		22,405		(3,658)
Net income attributable to the Operating Partnership			709,554		266,149		443,405		96,946
Interest and debt expense			130,464		121,118		9,346		122,979
Depreciation and amortization			173,071		170,733		2,338		172,980
Income tax (benefit) expense			(1,229)		(30)		(1,199)		5,102
EBITDA		$	1,011,860	$	557,970	$	453,890	$	398,007
Capitalized leasing and development payroll		$	5,072	$	5,148	$	(76)	$	5,412
Capitalized interest and debt expense		$	9,275	$	10,488	$	(1,213)	$	8,384
(1)	EBITDA represents "Earnings Before Interest, Taxes, Depreciation and Amortization."  We calculate EBITDA on an Operating Partnership basis which is before allocation to the noncontrolling interest of the Operating Partnership.  We consider EBITDA a 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 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. Our 7.5% interest in Fashion Centre Mall/Washington Tower will not be included in the spin-off of our Washington, DC segment and have been reclassified to Other. The prior year's presentation has been conformed to the current year.

- 15 -

 

CONSOLIDATED NET INCOME/EBITDA
(unaudited and in thousands)
		Year Ended December 31,
		2016		2015		Inc (Dec)
Property rentals		$	1,903,577	$	1,844,297	$	59,280
Straight-line rent adjustments			146,949		153,540		(6,591)
Amortization of acquired below-market leases, net			53,202		78,749		(25,547)
Total property rentals			2,103,728		2,076,586		27,142
Tenant expense reimbursements			260,667		260,976		(309)
Fee and other income:
	BMS cleaning fees		78,920		82,113		(3,193)
	Management and leasing fees		20,891		16,831		4,060
	Lease termination fees		9,516		27,233		(17,717)
	Other income		32,480		38,528		(6,048)
Total revenues			2,506,202		2,502,267		3,935
Operating expenses			1,024,336		1,011,249		13,087
Depreciation and amortization			565,059		542,952		22,107
General and administrative			179,279		175,307		3,972
Skyline properties impairment loss			160,700		-		160,700
Acquisition and transaction related costs			26,037		12,511		13,526
Total expenses			1,955,411		1,742,019		213,392
Operating income			550,791		760,248		(209,457)
Income (loss) from partially owned entities			165,389		(12,630)		178,019
(Loss) income from real estate fund investments			(23,602)		74,081		(97,683)
Interest and other investment income, net			29,546		26,978		2,568
Interest and debt expense			(402,674)		(378,025)		(24,649)
Net gain on extinguishment of Skyline properties debt			487,877		-		487,877
Net gain on disposition of wholly owned and partially owned assets			175,735		251,821		(76,086)
Income before income taxes			983,062		722,473		260,589
Income tax (expense) benefit			(8,312)		84,695		(93,007)
Income from continuing operations			974,750		807,168		167,582
Income from discontinued operations			7,172		52,262		(45,090)
Net income			981,922		859,430		122,492
Less net income attributable to noncontrolling interests in consolidated subsidiaries			(21,351)		(55,765)		34,414
Net income attributable to the Operating Partnership			960,571		803,665		156,906
Interest and debt expense			507,362		469,843		37,519
Depreciation and amortization			694,214		664,637		29,577
Income tax expense (benefit)			11,838		(85,379)		97,217
EBITDA		$	2,173,985	$	1,852,766	$	321,219
Capitalized leasing and development payroll		$	22,412	$	20,368	$	2,044
Capitalized interest and debt expense		$	34,097	$	59,305	$	(25,208)

- 16 -

 

EBITDA BY SEGMENT
(unaudited and in thousands)
		Three Months Ended December 31, 2016
		Total		New York			Washington, DC			Other
Property rentals		$	493,545	$	329,993		$	104,765		$	58,787
Straight-line rent adjustments			27,989		18,650			4,795			4,544
Amortization of acquired below-market leases, net			11,526		10,786			341			399
Total property rentals			533,060		359,429			109,901			63,730
Tenant expense reimbursements			68,826		52,180			10,094			6,552
Fee and other income:
	BMS cleaning fees		21,160		26,296			-			(5,136)
	Management and leasing fees		4,844		2,389			2,453			2
	Lease termination fees		1,794		1,317			147			330
	Other income		8,576		2,299			5,596			681
Total revenues			638,260		443,910			128,191			66,159
Operating expenses			262,023		182,762			47,643			31,618
Depreciation and amortization			141,821		84,099			37,181			20,541
General and administrative			44,569		8,307			7,612			28,650
Acquisition and transaction related costs			14,743		-			-			14,743
Total expenses			463,156		275,168			92,436			95,552
Operating income (loss)			175,104		168,742			35,755			(29,393)
Income (loss) from partially owned entities			164,860		2,764			(1,097)			163,193
(Loss) from real estate fund investments			(52,352)		-			-			(52,352)
Interest and other investment income (loss), net			9,284		1,409			(143)			8,018
Interest and debt expense			(98,244)		(54,492)			(18,038)			(25,714)
Net gain on extinguishment of Skyline properties debt			487,877		-			487,877			-
Net gain on disposition of wholly owned and partially owned assets			15,510		-			15,302			208
Income before income taxes			702,039		118,423			519,656			63,960
Income tax benefit (expense)			1,493		(1,377)			(199)			3,069
Income from continuing operations			703,532		117,046			519,457			67,029
Income from discontinued operations			1,012		-			-			1,012
Net income			704,544		117,046			519,457			68,041
Less net loss (income) attributable to noncontrolling interests in consolidated subsidiaries			5,010		(3,747)			-			8757
Net income attributable to the Operating Partnership			709,554		113,299			519,457			76,798
Interest and debt expense			130,464		71,880			19,934			38,650
Depreciation and amortization			173,071		104,513			41,007			27,551
Income tax (benefit) expense			(1,229)		1,487			199			(2,915)
EBITDA for the three months ended December 31, 2016		$	1,011,860	$	291,179		$	580,597		$	140,084
EBITDA for the three months ended December 31, 2015		$	557,970	$	443,496		$	77,779		$	36,695
EBITDA, as adjusted:
	For the three months ended December 31, 2016	$	370,768	$	291,179	(1)	$	72,085	(2)	$	7,504	(3)
	For the three months ended December 31, 2015	$	393,654	$	282,069	(1)	$	72,074	(2)	$	39,511	(3)
See notes on page 19.

- 17 -

 

EBITDA BY SEGMENT
(unaudited and in thousands)
		Year Ended December 31, 2016
		Total		New York			Washington, DC			Other
Property rentals		$	1,903,577	$	1,250,053		$	415,375		$	238,149
Straight-line rent adjustments			146,949		95,967			25,030			25,952
Amortization of acquired below-market leases, net			53,202		48,376			1,353			3,473
Total property rentals			2,103,728		1,394,396			441,758			267,574
Tenant expense reimbursements			260,667		199,038			39,104			22,525
Fee and other income:
	BMS cleaning fees		78,920		97,612			-			(18,692)
	Management and leasing fees		20,891		7,531			13,240			120
	Lease termination fees		9,516		7,705			746			1,065
	Other income		32,480		7,092			23,269			2,119
Total revenues			2,506,202		1,713,374			518,117			274,711
Operating expenses			1,024,336		716,754			194,398			113,184
Depreciation and amortization			565,059		340,969			144,036			80,054
General and administrative			179,279		35,864			29,729			113,686
Skyline properties impairment loss			160,700		-			160,700			-
Acquisition and transaction related costs			26,037		-			-			26,037
Total expenses			1,955,411		1,093,587			528,863			332,961
Operating income (loss)			550,791		619,787			(10,746)			(58,250)
Income (loss) from partially owned entities			165,389		(2,379)			(7,227)			174,995
Loss from real estate fund investments			(23,602)		-			-			(23,602)
Interest and other investment income (loss), net			29,546		5,093			(2)			24,455
Interest and debt expense			(402,674)		(216,685)			(72,434)			(113,555)
Net gain on extinguishment of Skyline properties debt			487,877		-			487,877			-
Net gain on disposition of wholly owned and partially owned assets			175,735		159,511			15,302			922
Income before income taxes			983,062		565,327			412,770			4,965
Income tax expense			(8,312)		(5,508)			(1,083)			(1,721)
Income from continuing operations			974,750		559,819			411,687			3,244
Income from discontinued operations			7,172		-			-			7,172
Net income			981,922		559,819			411,687			10,416
Less net income attributable to noncontrolling interests in consolidated subsidiaries			(21,351)		(13,558)			-			(7,793)
Net income attributable to the Operating Partnership			960,571		546,261			411,687			2,623
Interest and debt expense			507,362		280,563			81,723			145,076
Depreciation and amortization			694,214		435,961			158,720			99,533
Income tax expense			11,838		5,911			2,979			2,948
EBITDA for the year ended December 31, 2016		$	2,173,985	$	1,268,696		$	655,109		$	250,180
EBITDA for the year ended December 31, 2015		$	1,852,766	$	1,250,819		$	426,175		$	175,772
EBITDA, as adjusted:
	For the year ended December 31, 2016	$	1,521,291	$	1,106,065	(1)	$	290,499	(2)	$	124,727	(3)
	For the year ended December 31, 2015	$	1,498,802	$	1,070,841	(1)	$	290,571	(2)	$	137,390	(3)
See notes on following page.

- 18 -

 

NOTES TO EBITDA BY SEGMENT
(unaudited and in thousands)
(1)	The elements of "New York" EBITDA, as adjusted, are summarized below.
			Three Months Ended December 31,				Year Ended December 31,
			2016		2015		2016		2015
	Office (including BMS EBITDA of $6,165, $6,026, $24,145, and $23,935, respectively)		$	170,469	$	162,042	$	643,262	$	625,594
	Retail			97,528		93,615		381,554		357,079
	Residential			6,160		6,011		25,060		22,266
	Alexander's			11,302		11,708		46,182		42,858
	Hotel Pennsylvania			5,720		8,693		10,007		23,044
		Total New York	$	291,179	$	282,069	$	1,106,065	$	1,070,841
(2)	The elements of "Washington, DC" EBITDA, as adjusted, are summarized below.
			Three Months Ended December 31,				Year Ended December 31,
			2016		2015		2016		2015
	Office		$	58,694	$	61,668	$	243,842	$	249,784
	Residential			13,391		10,406		46,657		40,787
		Total Washington, DC	$	72,085	$	72,074	$	290,499	$	290,571

(3)	The elements of "Other" EBITDA, as adjusted, are summarized below.
			Three Months Ended December 31,				Year Ended December 31,
			2016		2015		2016		2015
	Our share of real estate fund investments:
		Income before net realized/unrealized (loss) gain	$	2,298	$	1,732	$	8,607	$	8,611
		Net realized/unrealized (loss) gain		(19,603)		5,115		(16,270)		14,657
		Carried interest		(17,399)		4,448		(13,379)		10,696
	Total (loss) income from real estate fund investments			(34,704)		11,295		(21,042)		33,964
	theMART (including trade shows)			21,156		16,930		91,845		79,159
	555 California Street			10,690		11,738		45,827		49,975
	India real estate ventures			1,100		1,704		3,685		3,933
	Other investments			30,308		17,107		82,505		50,390
				28,550		58,774		202,820		217,421
	Corporate general and administrative expenses(a) (b)			(24,230)		(24,373)		(100,594)		(106,416)
	Investment income and other, net(a)			3,184		5,110		22,501		26,385
		Total Other	$	7,504	$	39,511	$	124,727	$	137,390
	(a)	The amounts in these captions (for this table only) exclude the results of the mark-to-market of our deferred compensation plan of $2,588, $438, $5,213, and $111, respectively.
	(b)	The year ended December 31, 2015 includes a cumulative catch up of $4,542 from the acceleration of recognition of compensation expense related to the modification of the 2012-2014 Out-Performance Plans.

- 19 -

 

RECONCILIATION OF NET INCOME (LOSS) TO EBITDA TO EBITDA, AS ADJUSTED
(unaudited and in thousands)
				Three Months Ended December 31, 2016
				Total		New York		Washington, DC		Other
Net income attributable to the Operating Partnership				$	709,554	$	113,299	$	519,457	$	76,798
Interest and debt expense					130,464		71,880		19,934		38,650
Depreciation and amortization					173,071		104,513		41,007		27,551
Income tax (benefit) expense					(1,229)		1,487		199		(2,915)
EBITDA			(A)		1,011,860		291,179		580,597		140,084
Certain items that impact EBITDA:
	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 gains on sale of real estate				15,315		-		15,302		13
	Real estate impairment losses				(14,754)		-		-		(14,754)
	Acquisition and transaction related costs				(14,743)		-		-		(14,743)
	EBITDA from discontinued operations and sold properties				6,345		-		5,333		1,012
	Net gain on sale of New York REIT, Inc. shares				209		-		-		209
Certain items that impact EBITDA			(B)		641,092		-		508,512		132,580
EBITDA, as adjusted			(A-B)	$	370,768	$	291,179	$	72,085	$	7,504

			Three Months Ended December 31, 2015
			Total		New York		Washington, DC		Other
Net income (loss) attributable to the Operating Partnership			$	266,149	$	272,620	$	15,358	$	(21,829)
Interest and debt expense				121,118		64,347		19,574		37,197
Depreciation and amortization				170,733		105,131		42,601		23,001
Income tax (benefit) expense				(30)		1,398		246		(1,674)
EBITDA		(A)		557,970		443,496		77,779		36,695
Certain items that impact EBITDA:
	Net gains on sale of real estate and residential condominiums			146,924		142,693		-		4,231
	EBITDA from discontinued operations and sold properties			26,845		18,734		6,110		2,001
	Acquisition and transaction related costs			(4,951)		-		-		(4,951)
	Real estate impairment loss			(4,141)		-		-		(4,141)
	Other			(361)		-		(405)		44
Certain items that impact EBITDA		(B)		164,316		161,427		5,705		(2,816)
EBITDA, as adjusted		(A-B)	$	393,654	$	282,069	$	72,074	$	39,511

- 20 -

 

RECONCILIATION OF NET INCOME (LOSS) TO EBITDA TO EBITDA, AS ADJUSTED
(unaudited and in thousands)
				Year Ended December 31, 2016
				Total		New York		Washington, DC		Other
Net income attributable to the Operating Partnership				$	960,571	$	546,261	$	411,687	$	2,623
Interest and debt expense					507,362		280,563		81,723		145,076
Depreciation and amortization					694,214		435,961		158,720		99,533
Income tax expense					11,838		5,911		2,979		2,948
EBITDA			(A)		2,173,985		1,268,696		655,109		250,180
Certain items that impact EBITDA:
	Net gain on extinguishment of Skyline properties debt				487,877		-		487,877		-
	Real estate impairment losses				(180,990)		-		(160,700)		(20,290)
	Net gains on sale of real estate and residential condominiums				178,381		159,511		15,302		3,568
	Income from the repayment of our investments in 85 Tenth Avenue loans
		and preferred equity			160,843		-		-		160,843
	EBITDA from discontinued operations and sold properties				32,436		3,120		22,131		7,185
	Acquisition and transaction related costs				(26,062)		-		-		(26,062)
	Net gain on sale of New York REIT, Inc. shares				209		-		-		209
Certain items that impact EBITDA			(B)		652,694		162,631		364,610		125,453
EBITDA, as adjusted			(A-B)	$	1,521,291	$	1,106,065	$	290,499	$	124,727

			Year Ended December 31, 2015
			Total		New York		Washington, DC		Other
Net income attributable to the Operating Partnership			$	803,665	$	603,301	$	168,969	$	31,395
Interest and debt expense				469,843		248,724		80,795		140,324
Depreciation and amortization				664,637		394,028		178,021		92,588
Income tax (benefit) expense				(85,379)		4,766		(1,610)		(88,535)
EBITDA		(A)		1,852,766		1,250,819		426,175		175,772
Certain items that impact EBITDA:
	Net gains on sale of real estate and residential condominiums			300,354		142,693		102,404		55,257
	EBITDA from discontinued operations and sold properties			87,293		35,985		33,605		17,703
	Real estate impairment losses			(21,516)		-		-		(21,516)
	Acquisition and transaction related costs			(12,511)		-		-		(12,511)
	Other			344		1,300		(405)		(551)
Certain items that impact EBITDA		(B)		353,964		179,978		135,604		38,382
EBITDA, as adjusted		(A-B)	$	1,498,802	$	1,070,841	$	290,571	$	137,390

- 21 -

 

EBITDA, AS ADJUSTED BY SEGMENT AND REGION
(unaudited)
The following tables set forth the percentages of EBITDA, as adjusted by geographic region.
		Three Months Ended December 31,		Year Ended December 31,
		2016	2015	2016	2015
Segment and Region
	New York	74%	74%	72%	72%
	Washington, DC	18%	19%	19%	20%
	theMART, Chicago (included in "Other" segment)	5%	4%	6%	5%
	555 California Street, San Francisco (included in "Other" segment)	3%	3%	3%	3%
		100%	100%	100%	100%

- 22 -

 

CONSOLIDATED BALANCE SHEETS
(unaudited and in thousands)
			December 31, 2016		December 31, 2015		(Decrease) Increase
ASSETS
Real estate, at cost:
	Land		$	4,065,142	$	4,164,799	$	(99,657)
	Buildings and improvements			12,727,980		12,582,671		145,309
	Development costs and construction in progress			1,430,276		1,226,637		203,639
	Leasehold improvements and equipment			116,560		116,030		530
		Total		18,339,958		18,090,137		249,821
	Less accumulated depreciation and amortization			(3,513,574)		(3,418,267)		(95,307)
Real estate, net				14,826,384		14,671,870		154,514
Cash and cash equivalents				1,501,027		1,835,707		(334,680)
Restricted cash				98,295		107,799		(9,504)
Marketable securities				203,704		150,997		52,707
Tenant and other receivables, net				94,467		98,062		(3,595)
Investments in partially owned entities				1,428,019		1,550,422		(122,403)
Real estate fund investments				462,132		574,761		(112,629)
Receivable arising from the straight-lining of rents, net				1,032,736		931,245		101,491
Deferred leasing costs, net				454,345		480,421		(26,076)
Identified intangible assets, net				192,731		227,901		(35,170)
Assets related to discontinued operations				5,570		37,020		(31,450)
Other assets				515,437		477,088		38,349
	Total assets		$	20,814,847	$	21,143,293	$	(328,446)
LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND EQUITY
Liabilities:
	Mortgages payable, net		$	9,278,263	$	9,513,713	$	(235,450)
	Senior unsecured notes, net			845,577		844,159		1,418
	Unsecured revolving credit facilities			115,630		550,000		(434,370)
	Unsecured term loan, net			372,215		183,138		189,077
	Accounts payable and accrued expenses			458,694		443,955		14,739
	Deferred revenue			287,846		346,119		(58,273)
	Deferred compensation plan			121,374		117,475		3,899
	Liabilities related to discontinued operations			2,870		12,470		(9,600)
	Other liabilities			435,436		426,965		8,471
Total liabilities				11,917,905		12,437,994		(520,089)
Redeemable noncontrolling interests				1,278,446		1,229,221		49,225
Vornado shareholders' equity				6,898,519		6,697,595		200,924
Noncontrolling interests in consolidated subsidiaries				719,977		778,483		(58,506)
	Total liabilities, redeemable noncontrolling interests and equity		$	20,814,847	$	21,143,293	$	(328,446)

- 23 -

 

CAPITAL STRUCTURE
(unaudited and in thousands, except per share and unit amounts)
						December 31, 2016
Debt (contractual balances):
	Consolidated debt:
		Mortgages payable				$	9,374,297
		Senior unsecured notes					850,000
		$750 Million unsecured term loan					375,000
		$2.5 Billion unsecured revolving credit facilities					115,630
							10,714,927
	Pro rata share of debt of non-consolidated entities
		(excluding $1,833,253 of Toys' debt)					3,229,444
	Less: Noncontrolling interests' share of consolidated debt
		(primarily 1290 Avenue of the Americas, 555 California Street, and St. Regis - retail)					(598,202)
							13,346,169
			Shares/Units	Par Value
Perpetual Preferred:
5.00% preferred unit (D-16) (1 unit @ $1,000,000 per unit)							1,000
3.25% preferred units (D-17) (177,100 units @ $25 per unit)							4,428
6.625% Series G preferred shares			8,000	$	25.00		200,000
6.625% Series I preferred shares			10,800		25.00		270,000
5.70% Series K preferred shares			12,000		25.00		300,000
5.40% Series L preferred shares			12,000		25.00		300,000
							1,075,428
				December 31, 2016
			Converted	Common
			Shares	Share Price
Equity:
Common shares			189,101	$	104.37		19,736,471
Class A units			11,438		104.37		1,193,784
Convertible share equivalents:
	Equity awards - unit equivalents		759		104.37		79,217
	D-13 preferred units		447		104.37		46,653
	G1-G4 units		38		104.37		3,966
	Series A preferred shares		40		104.37		4,175
							21,064,266
Total Market Capitalization						$	35,485,863

- 24 -

 

DEBT ANALYSIS
(unaudited and in thousands)
		As of December 31, 2016
		Total				Variable				Fixed
				Weighted				Weighted				Weighted
				Average				Average				Average
(Contractual debt balances)		Amount		Interest Rate		Amount		Interest Rate		Amount		Interest Rate
Consolidated debt		$	10,714,927		3.32%	$	3,765,054		2.40%	$	6,949,873		3.82%
Pro rata share of debt of non-consolidated entities:
	Toys		1,833,253		7.28%		1,162,072		6.05%		671,181		9.42%
	All other		3,229,444		4.17%		1,109,376		2.49%		2,120,068		5.04%
Total			15,777,624		3.96%		6,036,502		3.12%		9,741,122		4.47%
Less: Noncontrolling interests' share of consolidated debt
	(primarily 1290 Avenue of the Americas,
	555 California Street, and St. Regis - retail)		(598,202)				(139,264)				(458,938)
Company's pro rata share of total debt		$	15,179,422		3.97%	$	5,897,238		3.14%	$	9,282,184		4.50%
		Senior Unsecured Notes
		Due 2019		Due 2022
Maturity date/put date			6/30/2019		1/15/2022
Principal amount		$	450,000	$	400,000
Coupon/effective economic interest rate			2.500%/2.581%		5.000%/5.057%
Ratings:
	Moody's/S&P/Fitch		Baa2/BBB/BBB		Baa2/BBB/BBB
Debt Covenant Ratios:(1)		Senior Unsecured Notes						Unsecured Revolving Credit Facilities				Unsecured Term Loan
				Actual
		Required		Due 2019		Due 2022		Required		Actual		Required		Actual
Total outstanding debt/total assets(2)		Less than 65%			46%		46%	Less than 60%			34%	Less than 60%		34%
Secured debt/total assets		Less than 50%			39%		39%	Less than 50%			29%	Less than 50%		29%
Interest coverage ratio (annualized combined
	EBITDA to annualized interest expense)	Greater than 1.50			3.18		3.18				N/A			N/A
Fixed charge coverage					N/A		N/A	Greater than 1.40			2.99	Greater than 1.40		2.99
Unencumbered assets/unsecured debt		Greater than 150%			692%		692%				N/A			N/A
Unsecured debt/cap value of unencumbered assets					N/A		N/A	Less than 60%			12%	Less than 60%		12%
Unencumbered coverage ratio					N/A		N/A	Greater than 1.50			14.42	Greater than 1.50		14.42
Unencumbered EBITDA:		Q4 2016
		Annualized
New York		$	462,076
Washington, DC			158,572
Other			26,076
Total		$	646,724
(1)	Our debt covenant ratios are computed in accordance with the terms of our senior unsecured notes, unsecured revolving credit facilities, and unsecured term loan, as applicable.  The methodology used for these computations may differ significantly from similarly titled ratios of other companies. For additional information regarding the methodology used to compute these ratios, please see our filings with the SEC of our revolving credit facilities, senior debt indentures and applicable prospectuses and prospectus supplements.
(2)	Total assets includes EBITDA capped at 7.5% under the senior unsecured notes and 6.0% under the unsecured revolving credit facilities and unsecured term loan.

- 25 -

 

DEBT MATURITIES (CONTRACTUAL BALANCES)
(unaudited and in thousands)
		Spread
	Maturity	over	Interest
Property	Date (1)	LIBOR	Rate	2017		2018		2019		2020		2021		Thereafter		Total
1700 & 1730 M Street	05/17	L+125	1.86%	$	43,581	$	-	$	-	$	-	$	-	$	-	$	43,581
2011 Crystal Drive	08/17		7.30%		75,004		-		-		-		-		-		75,004
220 20th Street	02/18		4.61%		-		68,426		-		-		-		-		68,426
828-850 Madison Avenue Retail Condominium	06/18		5.29%		-		80,000		-		-		-		-		80,000
33-00 Northern Boulevard	10/18		4.43%		-		60,782		-		-		-		-		60,782
Senior unsecured notes due 2019	06/19		2.50%		-		-		450,000		-		-		-		450,000
435 Seventh Avenue - retail	08/19	L+225	2.99%		-		-		97,706		-		-		-		97,706
$1.25 Billion unsecured revolving credit facility	11/19	L+105	1.68%		-		-		115,630		-		-		-		115,630
4 Union Square South - retail	11/19	L+215	2.77%		-		-		116,022		-		-		-		116,022
2200/2300 Clarendon Boulevard (Courthouse Plaza)	05/20	L+160	2.25%		-		-		-		11,000		-		-		11,000
150 West 34th Street	06/20	L+225	2.90%		-		-		-		205,000		-		-		205,000
100 West 33rd Street - office and retail	07/20	L+165	2.28%		-		-		-		580,000		-		-		580,000
220 Central Park South	09/20	L+200	2.77%		-		-		-		950,000		-		-		950,000
$750 Million unsecured term loan	10/20	L+115	1.88%		-		-		-		375,000		-		-		375,000
Eleven Penn Plaza	12/20		3.95%		-		-		-		450,000		-		-		450,000
888 Seventh Avenue	12/20		3.15%		-		-		-		375,000		-		-		375,000
Borgata Land	02/21		5.14%		-		-		-		-		56,607		-		56,607
770 Broadway	03/21		2.56%		-		-		-		-		700,000		-		700,000
909 Third Avenue	05/21		3.91%		-		-		-		-		350,000		-		350,000
606 Broadway	05/21	L+300	3.66%		-		-		-		-		25,768		-		25,768
WestEnd25	06/21		4.88%		-		-		-		-		100,841		-		100,841
Universal Buildings	08/21	L+190	2.52%		-		-		-		-		185,000		-		185,000
555 California Street	09/21		5.10%		-		-		-		-		579,795		-		579,795
theMART	09/21		2.70%		-		-		-		-		675,000		-		675,000
655 Fifth Avenue	10/21	L+140	2.02%		-		-		-		-		140,000		-		140,000
Two Penn Plaza	12/21	(2)	4.07%		-		-		-		-		575,000		-		575,000
Senior unsecured notes due 2022	01/22		5.00%		-		-		-		-		-		400,000		400,000
$1.25 Billion unsecured revolving credit facility	02/22	L+100	-		-		-		-		-		-		-		-
1290 Avenue of the Americas	11/22		3.34%		-		-		-		-		-		950,000		950,000
697-703 Fifth Avenue (St. Regis - retail)	12/22	L+180	2.42%		-		-		-		-		-		450,000		450,000
2121 Crystal Drive	03/23		5.51%		-		-		-		-		-		141,625		141,625
666 Fifth Avenue Retail Condominium	03/23		3.61%		-		-		-		-		-		390,000		390,000
2101 L Street	08/24		3.97%		-		-		-		-		-		143,415		143,415
See notes on the following page.

- 26 -

 

DEBT MATURITIES (CONTRACTUAL BALANCES)
(unaudited and in thousands)
			Spread
		Maturity	over	Interest
Property		Date (1)	LIBOR	Rate	2017		2018		2019		2020		2021		Thereafter		Total
1215 Clark Street, 200 12th Street &
	251 18th Street	01/25		7.94%	$	-	$	-	$	-	$	-	$	-	$	91,015	$	91,015
RiverHouse Apartments		04/25	L+128	1.90%		-		-		-		-		-		307,710		307,710
350 Park Avenue		01/27		3.92%		-		-		-		-		-		400,000		400,000
Total consolidated debt (contractual)					$	118,585	$	209,208	$	779,358	$	2,946,000	$	3,388,011	$	3,273,765	$	10,714,927
Weighted average rate						5.30%		4.82%		2.48%		2.80%		3.51%		3.63%		3.32%
Fixed rate debt					$	75,004	$	209,208	$	450,000	$	825,000	$	2,874,606	$	2,516,055	$	6,949,873
Fixed weighted average rate expiring						7.30%		4.82%		2.50%		3.59%		3.72%		4.06%		3.82%
Floating rate debt					$	43,581	$	-	$	329,358	$	2,121,000	$	513,405	$	757,710	$	3,765,054
Floating weighted average rate expiring						1.86%		-		2.45%		2.49%		2.36%		2.21%		2.40%
(1)	Represents the extended maturity for certain loans in which we have the unilateral right to extend.
(2)	Pursuant to an existing swap agreement, $412,000 of the loan bears interest at a fixed rate of 4.78% through March 2018, and the balance of $163,000 floats through March 2018. The entire $575,000 will float thereafter for the duration of the loan.

- 27 -

 

UNCONSOLIDATED JOINT VENTURES
(unaudited and in thousands)
							As of December 31, 2016
									Contractual Debt Balances
					Percentage		Company's		Company's
			Asset		Ownership at		Carrying		Pro rata		100% of
Joint Venture Name			Category		December 31, 2016		Amount		Share		Joint Venture
Alexander's, Inc.				Office/Retail		32.4%	$	129,324	$	342,192	$	1,056,147
Pennsylvania Real Estate Investment Trust (“PREIT”)				REIT		8.0%		122,883		140,297		1,747,543
India real estate ventures				Office/Land		4.1% to 36.5%		30,290		46,824		187,296
Urban Edge Properties (“UE”)				REIT		5.4%		24,523		65,259		1,209,994
85 Tenth Avenue				Office		49.9%		-		311,875		625,000
Partially owned office buildings:
		280 Park Avenue		Office		50.0%		270,188		450,000		900,000
		One Park Avenue		Office		55.0%		122,648		165,000		300,000
		650 Madison Avenue		Office/Retail		20.1%		118,301		161,024		800,000
		512 West 22nd Street		Office		55.0%		60,986		33,907		61,650
		666 Fifth Avenue Office Condominium		Office		49.5%		53,271		691,335		1,396,637
		Rosslyn Plaza	Office/Residential			43.7% to 50.4%		45,107		19,341		38,366
		West 57th Street properties		Office		50.0%		43,046		9,877		19,753
		Warner Building		Office		55.0%		39,419		150,150		273,000
		330 Madison Avenue		Office		25.0%		28,919		37,500		150,000
		825 Seventh Avenue		Office		50.0%		4,884		10,250		20,500
		1101 17th Street		Office		55.0%		(3,105)		17,050		31,000
		Other		Office		Various		13,541		17,465		50,150
Other investments:
		Independence Plaza		Residential		50.1%		142,641		275,550		550,000
		Toys "R" Us, Inc.		Retailer		32.5%		-		1,833,253		5,640,779
		Other		Various		Various		181,153		125,548		727,632
							$	1,428,019	$	4,903,697	$	15,785,447
7 West 34th Street(1)				Office/Retail		53.0%	$	(43,022)	$	159,000	$	300,000
(1)	Our negative basis results from a $43,813 deferred gain from the sale of a 47.0% ownership interest in the property and is included in "other liabilities" on our consolidated balance sheet.

- 28 -

 

UNCONSOLIDATED JOINT VENTURES
(unaudited and in thousands)
			Percentage		Our Share of Net Income (Loss) for the					Our Share of EBITDA for the
			Ownership at		Three Months Ended December 31,					Three Months Ended December 31,
			December 31, 2016		2016			2015		2016			2015
Joint Venture Name
New York:
		666 Fifth Avenue Office Condominium		49.5%	$	(7,869)		$	(10,125)	$	6,947		$	5,912
		Alexander's, Inc.		32.4%		6,830			7,452		11,302			11,706
		330 Madison Avenue		25.0%		1,341			1,772		2,333			2,701
		7 West 34th Street		53.0%		1,309			-		3,475			-
		Independence Plaza		50.1%		1,177			(772)		5,485			5,432
		650 Madison Avenue (retail under development)		20.1%		(1,010)			(1,154)		2,586			2,321
		One Park Avenue		55.0%		856			588		3,678			3,558
		280 Park Avenue		50.0%		(723)			944		8,532			8,375
		825 Seventh Avenue		50.0%		685			635		847			792
		West 57th Street properties (partially under development)		50.0%		28			(80)		324			243
		Other		Various		140			(128)		1,959			1,191
						2,764			(868)		47,468			42,231
Washington, DC:
		Rosslyn Plaza		43.7% to 50.4%		(901)			(1,044)		1,016			830
		Warner Building		55.0%		(433)			(1,015)		2,470			2,884
		1101 17th Street		55.0%		343			446		756			841
		Other		Various		(106)			(100)		383			448
						(1,097)			(1,713)		4,625			5,003
Other:
		85 Tenth Avenue		49.9%		172,553	(1)		1,159		178,169	(1)		7,440
		India real estate ventures		4.1% to 36.5%		(14,585)			(366)		(12,861)			1,704
		Alexander's corporate fee income		32.4%		1,463			1,068		1,463			1,068
		UE		5.4%		1,316			1,506		2,800			3,010
		PREIT		8.0%		(450)			(3,605)		3,862			1,254
		Other		Various		2,896			(1,102)		5,271			84
						163,193			(1,340)		178,704			14,560
					$	164,860		$	(3,921)	$	230,797		$	61,794
(1)	Includes $160,843 of income from the repayment of our investments in 85 Tenth Avenue loans and preferred equity.

- 29 -

 

UNCONSOLIDATED JOINT VENTURES
(unaudited and in thousands)
			Percentage		Our Share of Net Income (Loss) for the					Our Share of EBITDA for the
			Ownership at		Year Ended December 31,					Year Ended December 31,
			December 31, 2016		2016			2015		2016			2015
Joint Venture Name
New York:
		666 Fifth Avenue Office Condominium		49.5%	$	(41,532)		$	(37,495)	$	28,452		$	24,726
		Alexander's, Inc.		32.4%		27,470			24,209		46,182			42,856
		330 Madison Avenue		25.0%		5,934			6,332		9,737			10,228
		Independence Plaza		50.1%		5,256			(5,354)		22,044			20,353
		280 Park Avenue		50.0%		(4,850)			1,444		32,266			28,717
		650 Madison Avenue (retail under development)		20.1%		(4,820)			8,786		9,367			24,043
		One Park Avenue		55.0%		3,370			2,952		14,502			15,839
		7 West 34th Street		53.0%		3,032			-		8,258			-
		825 Seventh Avenue		50.0%		2,770			2,723		3,414			3,307
		West 57th Street properties (partially under development)		50.0%		84			(2,459)		1,290			760
		Other		Various		907			(483)		10,055			4,263
						(2,379)			655		185,567			175,092
Washington, DC:
		Rosslyn Plaza		43.7% to 50.4%		(3,668)			(3,337)		4,062			4,170
		Warner Building		55.0%		(3,010)			(6,416)		9,510			9,307
		1101 17th Street		55.0%		(220)			3,522		3,291			3,149
		Other		Various		(329)			211		1,779			2,367
						(7,227)			(6,020)		18,642			18,993
Other:
		85 Tenth Avenue		49.9%		178,072	(1)		(1,015)		199,688	(1)		25,461
		India real estate ventures		4.1% to 36.5%		(18,122)			(18,746)		(10,276)			(10,873)
		Alexander's corporate fee income		32.4%		6,770			6,869		6,770			6,869
		UE		5.4%		5,839			4,394		11,810			8,763
		PREIT		8.0%		(5,213)			(7,450)		14,240			2,799
		Other		Various		7,649			8,683		13,346			11,448
						174,995			(7,265)		235,578			44,467
					$	165,389		$	(12,630)	$	439,787		$	238,552
(1)	Includes $160,843 of income from the repayment of our investments in 85 Tenth Avenue loans and preferred equity.

- 30 -

 

SQUARE FOOTAGE in service
(unaudited and square feet in thousands)
				Owned by Company
			Total
			Portfolio	Total	Office	Retail	Showroom	Other
Segment:
	New York:
		Office	20,227	16,962	16,779	-	183	-
		Retail	2,672	2,464	-	2,464	-	-
		Residential - 1,692 units	1,559	826	-	-	-	826
		Alexander's (32.4% interest),
		including 312 residential units	2,437	790	288	419	-	83
		Hotel Pennsylvania	1,400	1,400	-	-	-	1,400
			28,295	22,442	17,067	2,883	183	2,309
	Washington, DC:
		Office	11,141	10,123	9,443	680	-	-
		Residential - 3,156 units	3,245	3,103	-	43	-	3,060
		Other	330	330	-	9	-	321
			14,716	13,556	9,443	732	-	3,381
	Other:
		theMART	3,671	3,662	1,955	98	1,609	-
		555 California Street (70% interest)	1,738	1,217	1,124	93	-	-
		Other	1,811	850	13	837	-	-
			7,220	5,729	3,092	1,028	1,609	-
Total square feet at December 31, 2016			50,231	41,727	29,602	4,643	1,792	5,690
Total square feet at September 30, 2016			50,305	41,793	29,620	4,750	1,814	5,609
					Number of	Number of
Parking Garages (not included above):				Square Feet	Garages	Spaces
	New York			1,686	11	4,970
	Washington, DC			6,965	45	22,110
	theMART			558	4	1,651
	555 California Street			168	1	453
	Total at December 31, 2016			9,377	61	29,184

- 31 -

 

TOP 30 TENANTS
(unaudited)
	Our		Our Pro Rata Share of
	Share of		Annualized
	Square		Revenues(1)		% of Pro Rata
Tenants	Footage(1)		(in thousands)		Annualized Revenues
U.S. Government		3,231,849	$	110,119		3.8%
IPG and affiliates		923,896		56,184		1.9%
Swatch Group USA		25,634		38,158		1.3%
Macy's		646,434		37,708		1.3%
Victoria's Secret		91,427		33,820		1.2%
Bloomberg L.P.		287,898		32,805		1.1%
Facebook		370,534		32,740		1.1%
AXA Equitable Life Insurance		336,646		31,670		1.1%
AOL (Verizon)		327,138		29,874		1.0%
Ziff Brothers Investments, Inc.		287,030		28,942		1.0%
McGraw-Hill Companies, Inc.		479,557		27,878		1.0%
The City of New York		565,846		23,712		0.8%
AMC Networks, Inc.		404,920		23,091		0.8%
J. Crew		310,233		23,038		0.8%
Topshop		94,349		22,643		0.8%
Motorola Mobility (guaranteed by Google)		609,071		22,163		0.8%
Fast Retailing (Uniqlo)		90,732		21,939		0.8%
Neuberger Berman Group LLC		288,684		21,800		0.7%
Madison Square Garden		353,134		21,692		0.7%
Forever 21		127,779		21,631		0.7%
Hollister		21,741		18,686		0.6%
JCPenney		426,370		18,681		0.6%
Amazon		249,175		17,082		0.6%
PricewaterhouseCoopers LLP		243,434		16,884		0.6%
Bank of America		231,356		17,284		0.6%
Family Health International		320,791		15,304		0.5%
Hennes & Mauritz (H&M)		51,363		15,230		0.5%
Cushman & Wakefield		175,042		14,291		0.5%
Lockheed Martin		296,589		14,198		0.5%
Sears Holding Company (Kmart Corporation and Sears Corporation)		286,705		13,703		0.5%
						28.2%
(1) Includes leases not yet commenced.

- 32 -

 

LEASE EXPIRATIONS
NEW YORK SEGMENT
(unaudited)
			Our share of
			Square Feet		Weighted Average Annual				Percentage of
		Year of Lease	of Expiring		Rent of Expiring Leases				Annualized
		Expiration	Leases		Total		Per Sq. Ft.		Escalated Rent
	Office:	Month to Month		25,000	$	1,254,000	$	50.16		0.1%
		First Quarter 2017		98,000		6,725,000		68.62		0.6%
		Second Quarter 2017		184,000		10,405,000		56.55		1.0%
		Third Quarter 2017		108,000		7,269,000		67.31		0.7%
		Fourth Quarter 2017		99,000		7,371,000		74.45		0.7%
		Total 2017		489,000		31,770,000		64.97		3.0%
		2018		1,153,000		85,505,000		74.16		7.9%
		2019		826,000		57,322,000		69.40		5.3%
		2020		1,466,000		99,053,000		67.57		9.2%
		2021		1,242,000		86,776,000		69.87		8.1%
		2022		688,000		37,809,000		54.95		3.5%
		2023		1,725,000		132,048,000		76.55		12.3%
		2024		1,227,000		93,797,000		76.44		8.7%
		2025		742,000		53,343,000		71.89		5.0%
		2026		1,298,000		92,625,000		71.36		8.6%
	Retail:	Month to Month		50,000	$	2,509,000	$	50.18		0.6%
		First Quarter 2017		10,000		5,684,000		568.40		1.3%
		Second Quarter 2017		6,000		4,967,000		827.83		1.1%
		Third Quarter 2017		1,000		511,000		511.00		0.1%
		Fourth Quarter 2017		11,000		2,212,000		201.09		0.5%
		Total 2017		28,000		13,374,000		477.64		3.0%
		2018		171,000		44,423,000		259.78		10.0%
		2019		202,000		34,039,000		168.51		7.7%
		2020		72,000		10,588,000		147.06		2.4%
		2021		52,000		10,283,000		197.75		2.3%
		2022		33,000		3,855,000		116.82		0.9%
		2023		81,000		20,523,000		253.37		4.6%
		2024		151,000		59,881,000		396.56		13.5%
		2025		38,000		18,428,000		484.95		4.2%
		2026		136,000		42,233,000		310.54		9.5%

- 33 -

 

LEASE EXPIRATIONS
WASHINGTON, DC SEGMENT
(unaudited)
			Our share of
			Square Feet		Weighted Average Annual				Percentage of
		Year of Lease	of Expiring		Rent of Expiring Leases				Annualized
		Expiration	Leases		Total		Per Sq. Ft.		Escalated Rent
	Office:	Month to Month		93,000	$	2,516,000	$	27.05		0.7%
		First Quarter 2017		453,000		16,154,000		35.66		4.4%
		Second Quarter 2017		142,000		5,431,000		38.25		1.5%
		Third Quarter 2017		207,000		8,298,000		40.09		2.3%
		Fourth Quarter 2017		153,000		6,382,000		41.71		1.7%
		Total 2017		955,000		36,265,000		37.97		9.9%
		2018		943,000		43,658,000		46.30		11.9%
		2019		1,143,000		51,492,000		45.05		14.0%
		2020		845,000		42,980,000		50.86		11.7%
		2021		793,000		35,331,000		44.55		9.6%
		2022		1,149,000		52,207,000		45.44		14.2%
		2023		225,000		10,202,000		45.34		2.8%
		2024		377,000		15,840,000		42.02		4.3%
		2025		319,000		12,685,000		39.76		3.5%
		2026		192,000		9,154,000		47.68		2.5%

- 34 -

 

LEASING ACTIVITY
(unaudited)
The leasing activity and related statistics in the tables 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 (“GAAP”).  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 York Office
							Long Island City		New York		Washington, DC
					Manhattan		(Center Building)		Retail		Office
Three Months Ended December 31, 2016
	Total square feet leased					609		17		10		329
	Our share of square feet leased:					432		17		10		311
		Initial rent (1)			$	78.29	$	35.41	$	906.91	$	41.59
		Weighted average lease term (years)				7.8		9.8		9.8		4.6
		Second generation relet space:
			Square feet			358		-		7		272
			GAAP basis:
				Straight-line rent (2)	$	77.10	$	-	$	178.19	$	40.43
				Prior straight-line rent	$	71.95	$	-	$	164.21	$	39.11
				Percentage increase		7.2%		-		8.5%		3.4%
				Percentage increase inclusive of 3 square foot Dyson lease at 640 Fifth (3)						515.6%
			Cash basis:
				Initial rent (1)	$	77.16	$	-	$	160.47	$	41.91
				Prior escalated rent	$	72.41	$	-	$	170.45	$	41.12
				Percentage increase (decrease)		6.6%		-		(5.9%)		1.9%
				Percentage increase inclusive of 3 square foot Dyson lease at 640 Fifth (3)						396.4%
		Tenant improvements and leasing commissions:
			Per square foot		$	73.69	$	75.81	$	813.04	$	23.20
			Per square foot per annum		$	9.45	$	7.74	$	82.96	$	5.04
				Percentage of initial rent		12.1%		21.8%		9.1%		12.1%
See notes on page 37.

- 35 -

 

LEASING ACTIVITY
(unaudited)
(square feet in thousands)							Long Island City		New York		Washington, DC
					Manhattan		(Center Building)		Retail		Office
Year Ended December 31, 2016
	Total square feet leased					1,939		302		111		1,427
	Our share of square feet leased:					1,541		302		90		1,350
		Initial rent (1)			$	78.97	$	39.84	$	285.17	$	40.41
		Weighted average lease term (years)				9.3		6.0		9.1		4.2
		Second generation relet space:
			Square feet			1,382		285		69		1,072
			GAAP basis:
				Straight-line rent (2)	$	78.30	$	38.68	$	204.95	$	38.56
				Prior straight-line rent	$	66.15	$	28.69	$	166.14	$	39.53
				Percentage increase (decrease)		18.4%		34.8%		23.4%		(2.5%)
				Percentage increase inclusive of 3 square foot Dyson lease at 640 Fifth (3)						94.9%
			Cash basis:
				Initial rent (1)	$	78.37	$	40.10	$	194.35	$	41.08
				Prior escalated rent	$	68.03	$	30.53	$	173.70	$	42.47
				Percentage increase (decrease)		15.2%		31.4%		11.9%		(3.3%)
				Percentage increase inclusive of 3 square foot Dyson lease at 640 Fifth (3)						70.1%
		Tenant improvements and leasing commissions:
			Per square foot		$	72.81	$	21.66	$	184.74	$	19.62
			Per square foot per annum		$	7.83	$	3.61	$	20.30	$	4.67
				Percentage of initial rent		9.9%		9.1%		7.1%		11.6%
See notes on the following page.

- 36 -

 

LEASING ACTIVITY
(unaudited)
(square feet in thousands)					New York				Washington, DC
					Office		Retail		Office
Year Ended December 31, 2015
	Total square feet leased					2,276		91		1,987
	Our share of square feet leased:					1,838		82		1,847
		Initial rent (1)			$	78.55	$	917.59	$	40.20
		Weighted average lease term (years)				9.2		13.7		8.6
		Second generation relet space:
			Square feet			1,297		74		1,322
			GAAP basis:
				Straight-line rent (2)	$	77.03	$	1,056.66	$	39.57	(4)
				Prior straight-line rent	$	62.73	$	529.31	$	43.08	(4)
				Percentage increase (decrease)		22.8%		99.6%		(8.2%)	(4)
			Cash basis:
				Initial rent (1)	$	78.89	$	907.49	$	40.12	(4)
				Prior escalated rent	$	66.21	$	364.56	$	43.99	(4)
				Percentage increase (decrease)		19.1%		148.9%		(8.8%)	(4)
		Tenant improvements and leasing commissions:
			Per square foot		$	69.36	$	688.42	$	55.14
				Per square foot per annum	$	7.54	$	50.25	$	6.41
				Percentage of initial rent		9.6%		5.5%		15.9%
(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.
(3)	The Dyson lease was signed after this space had been vacant for greater than nine months and therefore, by company policy, does not qualify as "second generation" relet space.
(4)	Excluding 371 square feet of leasing activity with the U.S. Marshals Service (of which 293 square feet is second generation relet space), the initial rent and prior escalated rent on a GAAP basis was $42.30 and $43.89 per square foot, respectively (3.6% decrease), and the initial rent and prior escalated rent on a cash basis was $42.43 and $43.96 per square foot, respectively (3.5% decrease).

- 37 -

 

OCCUPANCY, SAME STORE EBITDA AND RESIDENTIAL STATISTICS
(unaudited)
Occupancy and Same Store EBITDA:		New York	Washington, DC
Occupancy rate at:
	December 31, 2016	96.5%	90.5%
	September 30, 2016	95.8%	91.3%
	December 31, 2015	96.4%	91.6%
Same store EBITDA % increase (decrease):
	Three months ended December 31, 2016 vs. December 31, 2015	7.8% (1)	2.3%
	Year ended December 31, 2016 vs. December 31, 2015	6.3% (2)	2.8%
	Three months ended December 31, 2016 vs. September 30, 2016	4.1% (3)	(3.7%)
Cash basis same store EBITDA % increase (decrease):
	Three months ended December 31, 2016 vs. December 31, 2015	17.6% (1)	4.4%
	Year ended December 31, 2016 vs. December 31, 2015	8.6% (2)	3.8%
	Three months ended December 31, 2016 vs. September 30, 2016	8.2% (3)	(2.3%)
(1)	Excluding Hotel Pennsylvania, same store EBITDA increased by 9.2% and by 19.8% on a cash basis.
(2)	Excluding Hotel Pennsylvania, same store EBITDA increased by 7.7% and by 10.3% on a cash basis.
(3)	Excluding Hotel Pennsylvania, same store EBITDA increased by 3.6% and by 7.6% on a cash basis.

Residential Statistics (in service):				Vornado's Ownership Interest
								Average Monthly
			Number of Units	Number of Units	Occupancy Rate			Rent Per Unit
	New York:
		December 31, 2016(1)	2,004	977		95.7	%	$	3,576
		September 30, 2016(1)	2,002	976		96.1	%	$	3,535
		December 31, 2015	1,711	886		95.0	%	$	3,495
	Washington, DC:
		December 31, 2016	3,156	3,046		97.8	%	$	2,064
		September 30, 2016	3,058	2,948		98.1	%	$	2,060
		December 31, 2015	2,630	2,520		96.4	%	$	2,044
	(1)	Includes The Alexander (32.4% ownership) from the date of stabilization in the third quarter of 2016.

- 38 -

 

DEVELOPMENT/REDEVELOPMENT SUMMARY

(unaudited and in thousands, except square feet)

As of December 31, 2016

(At Vornado's Ownership Interest)

Full

Property

Excluding Land Costs

Quarter

Rentable

Incremental

Amount

%

Initial

Stabilized

Current Projects:

Segment

Sq. Ft.

Budget

Expended

Complete

Start

Occupancy

Operations

220 Central Park South - residential condominiums

Other

397,000

$

1,300,000

$

609,420

(1)

46.9%

Q3 2012

N/A

N/A

512 W 22nd Street (55.0% interest)

New York

173,000

72,000

16,579

(2)

23.0%

Q4 2015

Q1 2018

Q1 2020

61 Ninth Avenue (45.1% interest)

New York

170,000

68,000

17,363

(3)

25.5%

Q1 2016

Q1 2018

Q1 2020

606 Broadway (50.0% interest)

New York

34,000

30,000

10,417

(4)

34.7%

Q2 2016

Q1 2019

Q2 2020

Total current projects

$

653,779

Property

Zoning

Future Opportunities:

Segment

Sq. Ft.

Penn Plaza District - multiple opportunities - office/residential/retail

New York

TBD

Hotel Pennsylvania - mixed use

New York

2,052,000

260 Eleventh Avenue - office

New York

300,000

Undeveloped Land:

29, 31, 33 West 57th Street (50.0% interest)

New York

150,000

527 West Kinzie, Chicago

Other

330,000

Total undeveloped land

480,000

(1)

Excludes land and acquisition costs of $515,426 ($589,500 on an economic basis). Delivery of condo units is expected to commence in mid-2018.

(2)

Excludes land and acquisition costs of $57,000.

(3)

The building is subject to a ground lease which expires in 2115.

(4)

Excludes land and acquisition costs of $22,703.

- 39 -

 

CAPITAL EXPENDITURES,
TENANT IMPROVEMENTS AND LEASING COMMISSIONS
CONSOLIDATED
(unaudited and in thousands)
		Year Ended December 31,
		2016		2015		2014
Capital expenditures (accrual basis):
Expenditures to maintain assets		$	114,031	$	125,215	$	107,728
Tenant improvements			86,630		153,696		205,037
Leasing commissions			38,938		50,081		79,636
Non-recurring capital expenditures			55,636		116,875		122,330
Total capital expenditures and leasing commissions (accrual basis)			295,235		445,867		514,731
Adjustments to reconcile to cash basis:
	Expenditures in the current year applicable to prior periods		268,101		156,753		140,490
	Expenditures to be made in future periods for the current period		(117,910)		(222,469)		(313,746)
Total capital expenditures and leasing commissions (cash basis)		$	445,426	$	380,151	$	341,475
Our share of square feet leased			3,283		3,767		5,204
Tenant improvements and leasing commissions per square foot per annum		$	7.15	$	8.43	$	6.53
Percentage of initial rent			11.0%		10.8%		10.3%
Development and redevelopment expenditures:
	220 Central Park South	$	303,974	$	158,014	$	78,059
	The Bartlett		67,580		103,878		38,163
	640 Fifth Avenue		46,282		17,899		440
	90 Park Avenue		33,308		29,937		8,910
	theMART		24,788		588		3,066
	2221 South Clark Street (residential conversion)		15,939		23,711		3,481
	Penn Plaza		11,904		17,701		4,009
	Marriott Marquis Times Square - retail and signage		9,283		21,929		112,390
	Wayne Towne Center		8,461		20,633		19,740
	330 West 34th Street		5,492		32,613		41,592
	Other		79,554		63,916		234,337
		$	606,565	$	490,819	$	544,187

- 40 -

 

CAPITAL EXPENDITURES,
TENANT IMPROVEMENTS AND LEASING COMMISSIONS
NEW YORK SEGMENT
(unaudited and in thousands)
		Year Ended December 31,
		2016		2015		2014
Capital expenditures (accrual basis):
Expenditures to maintain assets		$	67,239	$	57,752	$	48,518
Tenant improvements			63,995		68,869		143,007
Leasing commissions			32,475		35,099		66,369
Non-recurring capital expenditures			41,322		81,240		64,423
Total capital expenditures and leasing commissions (accrual basis)			205,031		242,960		322,317
Adjustments to reconcile to cash basis:
	Expenditures in the current year applicable to prior periods		159,144		93,105		67,577
	Expenditures to be made in future periods for the current period		(100,151)		(118,911)		(205,258)
Total capital expenditures and leasing commissions (cash basis)		$	264,024	$	217,154	$	184,636
Our share of square feet leased			1,933		1,920		3,530
Tenant improvements and leasing commissions per square foot per annum		$	7.98	$	10.20	$	6.82
Percentage of initial rent			9.7%		8.9%		9.1%
Development and redevelopment expenditures:
	640 Fifth Avenue	$	46,282	$	17,899	$	440
	90 Park Avenue		33,308		29,937		8,910
	Penn Plaza		11,904		17,701		4,009
	Marriott Marquis Times Square - retail and signage		9,283		21,929		112,390
	330 West 34th Street		5,492		32,613		41,592
	Other		11,934		8,100		46,465
		$	118,203	$	128,179	$	213,806

- 41 -

 

CAPITAL EXPENDITURES,
TENANT IMPROVEMENTS AND LEASING COMMISSIONS
WASHINGTON, DC SEGMENT
(unaudited and in thousands)
		Year Ended December 31,
		2016		2015		2014
Capital expenditures (accrual basis):
Expenditures to maintain assets		$	24,745	$	25,589	$	23,425
Tenant improvements			12,712		51,497		37,842
Leasing commissions			4,067		6,761		5,857
Non-recurring capital expenditures			8,725		34,428		37,798
Total capital expenditures and leasing commissions (accrual basis)			50,249		118,275		104,922
Adjustments to reconcile to cash basis:
	Expenditures in the current year applicable to prior periods		71,935		35,805		45,084
	Expenditures to be made in future periods for the current period		(16,357)		(73,227)		(63,283)
Total capital expenditures and leasing commissions (cash basis)		$	105,827	$	80,853	$	86,723
Our share of square feet leased			1,350		1,847		1,674
Tenant improvements and leasing commissions per square foot per annum		$	4.67	$	6.41	$	5.70
Percentage of initial rent			11.6%		15.9%		14.8%
Development and redevelopment expenditures:
	The Bartlett	$	67,580	$	103,878	$	38,163
	2221 South Clark Street (residential conversion)		15,939		23,711		3,481
	Other		56,863		40,696		42,001
		$	140,382	$	168,285	$	83,645

- 42 -

 

CAPITAL EXPENDITURES,
TENANT IMPROVEMENTS AND LEASING COMMISSIONS
OTHER
(unaudited and in thousands)
		Year Ended December 31,
		2016		2015		2014
Capital expenditures (accrual basis):
Expenditures to maintain assets		$	22,047	$	41,874	$	35,785
Tenant improvements			9,923		33,330		24,188
Leasing commissions			2,396		8,221		7,410
Non-recurring capital expenditures			5,589		1,207		20,109
Total capital expenditures and leasing commissions (accrual basis)			39,955		84,632		87,492
Adjustments to reconcile to cash basis:
	Expenditures in the current year applicable to prior periods		37,022		27,843		27,829
	Expenditures to be made in future periods for the current period		(1,402)		(30,331)		(45,205)
Total capital expenditures and leasing commissions (cash basis)		$	75,575	$	82,144	$	70,116
Development and redevelopment expenditures:
	220 Central Park South	$	303,974	$	158,014	$	78,059
	theMART		24,788		588		3,066
	Wayne Towne Center		8,461		20,633		19,740
	Other		10,757		15,120		145,871
		$	347,980	$	194,355	$	246,736

- 43 -

 

NEW YORK SEGMENT
PROPERTY TABLE
					Weighted		Square Feet
					Average				Under Development
			%	%	Annual Rent		Total		or Not Available	Encumbrances
Property			Ownership	Occupancy	PSF (1)		Property	In Service	for Lease	(in thousands) (2)		Major Tenants
NEW YORK:
Penn Plaza:
One Penn Plaza												Cisco, Lion Resources,
	(ground leased through 2098)											Parsons Brinckerhoff, Symantec Corporation,
		-Office	100.0%	92.0%	$	62.09	2,252,000	2,252,000	-			United Health Care, URS Corporation Group Counseling,
												Bank of America, Kmart Corporation,
		-Retail	100.0%	98.8%		129.57	270,000	270,000	-			Shake Shack, Starbucks
			100.0%	92.7%		69.31	2,522,000	2,522,000	-	$	-
Two Penn Plaza												EMC, Information Builders, Inc.,
		-Office	100.0%	99.8%		56.98	1,582,000	1,582,000	-		575,000	Madison Square Garden, McGraw-Hill Companies, Inc.
		-Retail	100.0%	69.7%		234.56	49,000	49,000	-		-	Chase Manhattan Bank
			100.0%	98.9%		62.32	1,631,000	1,631,000	-		575,000
Eleven Penn Plaza
		-Office	100.0%	99.5%		58.43	1,115,000	1,115,000	-		450,000	Macy's, Madison Square Garden, AMC Networks, Inc.
												PNC Bank National Association, Starbucks,
		-Retail	100.0%	85.2%		144.92	36,000	36,000	-		-	Madison Square Garden
			100.0%	99.1%		61.13	1,151,000	1,151,000	-		450,000
100 West 33rd Street
		-Office	100.0%	98.2%		62.19	855,000	855,000	-		398,402	IPG and affiliates
Manhattan Mall
		-Retail	100.0%	97.6%		126.33	256,000	256,000	-		181,598	JCPenney, Aeropostale, Express, Starbucks
330 West 34th Street
	(ground leased through 2149 -
	34.8% ownership interest in the land)											New York & Company, Inc., Structure Tone
		-Office	100.0%	87.4%		59.58	700,000	700,000	-		50,150	Deutsch, Inc., Yodle, Inc., Footlocker
		-Retail	100.0%	81.4%		100.00	18,000	18,000	-		-
			100.0%	87.2%		59.58	718,000	718,000	-		50,150
435 Seventh Avenue
		-Retail	100.0%	100.0%		284.02	43,000	43,000	-		97,706	Hennes & Mauritz
7 West 34th Street
		-Office	53.0%	100.0%		62.96	458,000	458,000	-		300,000	Amazon
		-Retail	53.0%	100.0%		273.17	21,000	21,000	-		-	Amazon
			53.0%	100.0%		72.18	479,000	479,000	-		300,000
484 Eighth Avenue
		-Retail	100.0%	-		-	16,000	-	16,000		-
431 Seventh Avenue
		-Retail	100.0%	100.0%		256.49	10,000	10,000	-		-
488 Eighth Avenue
		-Retail	100.0%	100.0%		84.99	6,000	6,000	-		-
267 West 34th Street
		-Retail	100.0%	100.0%		175.79	6,000	6,000	-		-

- 44 -

 

NEW YORK SEGMENT
PROPERTY TABLE
					Weighted			Square Feet
					Average					Under Development
			%	%	Annual Rent			Total		or Not Available	Encumbrances
Property			Ownership	Occupancy	PSF (1)			Property	In Service	for Lease	(in thousands) (2)		Major Tenants
NEW YORK (Continued):
Penn Plaza (Continued):
138-142 West 32nd Street
		-Retail	100.0%	67.4%	$	95.00		8,000	8,000	-	$	-
150 West 34th Street
		-Retail	100.0%	100.0%		70.28		78,000	78,000	-		205,000	Old Navy
137 West 33rd Street
		-Retail	100.0%	100.0%		94.67		3,000	3,000	-		-
265 West 34th Street
		-Retail	100.0%	100.0%		493.49		3,000	3,000	-		-
131-135 West 33rd Street
		-Retail	100.0%	100.0%		39.62		23,000	23,000	-		-
486 Eighth Avenue
		-Retail	100.0%	-		-		3,000	-	3,000		-
	Total Penn Plaza							7,811,000	7,792,000	19,000		2,257,856
Midtown East:
909 Third Avenue													IPG and affiliates, Forest Laboratories,
	(ground leased through 2063)												Geller & Company, Morrison Cohen LLP, Robeco USA Inc.,
		-Office	100.0%	100.0%		58.97	(3)	1,346,000	1,346,000	-		350,000	United States Post Office, The Procter & Gamble Distributing LLC
150 East 58th Street
		-Office	100.0%	98.2%		71.88		543,000	543,000	-			Castle Harlan, Tournesol Realty LLC. (Peter Marino),
		-Retail	100.0%	13.9%		17.86		2,000	2,000	-
			100.0%	97.9%		71.68		545,000	545,000	-		-
715 Lexington Avenue
		-Retail	100.0%	100.0%		249.99		23,000	23,000	-		-	New York & Company, Inc., Zales, Jonathan Adler
966 Third Avenue
		-Retail	100.0%	100.0%		91.09		7,000	7,000	-		-	McDonald's
968 Third Avenue
		-Retail	50.0%	100.0%		262.47		6,000	6,000	-		-	Capital One Financial Corporation
	Total Midtown East							1,927,000	1,927,000	-		350,000

- 45 -

 

NEW YORK SEGMENT
PROPERTY TABLE
					Weighted		Square Feet
					Average				Under Development
			%	%	Annual Rent		Total		or Not Available	Encumbrances
Property			Ownership	Occupancy	PSF (1)		Property	In Service	for Lease	(in thousands) (2)		Major Tenants
NEW YORK (Continued):
Midtown West:
888 Seventh Avenue												TPG-Axon Capital, Lone Star US Acquisitions LLC,
	(ground leased through 2067)											Pershing Square Capital Management,
		-Office	100.0%	94.5%	$	93.03	870,000	870,000	-	$	375,000	Vornado Executive Headquarters
		-Retail	100.0%	100.0%		252.83	15,000	15,000	-		-	Redeye Grill L.P.
			100.0%	94.6%		95.74	885,000	885,000	-		375,000
57th Street - 2 buildings
		-Office	50.0%	92.7%		56.04	81,000	81,000	-		19,753	Various
		-Retail	50.0%	100.0%		125.72	22,000	22,000	-		-
			50.0%	94.3%		70.92	103,000	103,000	-		19,753
825 Seventh Avenue
		-Office	50.0%	100.0%		78.70	165,000	165,000	-		20,500	Young & Rubicam
		-Retail	100.0%	100.0%		269.72	4,000	4,000	-		-	Lindy's
			51.2%	100.0%		83.22	169,000	169,000	-		20,500
	Total Midtown West						1,157,000	1,157,000	-		415,253
Park Avenue:
280 Park Avenue												Cohen & Steers Inc., GIC Inc, Franklin Templeton Co. LLC,
		-Office	50.0%	92.2%		98.30	1,223,000	1,223,000	-		900,000	PJT Partners, Investcorp International Inc.
		-Retail	50.0%	100.0%		96.52	26,000	26,000	-		-	Scottrade Inc., Starbucks, The Four Seasons Restaurant
			50.0%	92.3%		98.26	1,249,000	1,249,000	-		900,000
350 Park Avenue												Kissinger Associates Inc., Ziff Brothers Investment Inc.,
		-Office	100.0%	100.0%		100.18	554,000	554,000	-		400,000	MFA Financial Inc., M&T Bank
		-Retail	100.0%	100.0%		211.34	17,000	17,000	-		-	Fidelity Investment, AT&T Wireless, Valley National Bank
			100.0%	100.0%		103.49	571,000	571,000	-		400,000
	Total Park Avenue						1,820,000	1,820,000	-		1,300,000
Grand Central:
90 Park Avenue												Alston & Bird, Amster, Rothstein & Ebenstein,
												Capital One, Factset Research Systems Inc., Foley & Lardner,
		-Office	100.0%	95.8%		76.14	935,000	935,000	-			PricewaterhouseCoopers LLP (lease not yet commenced)
		-Retail	100.0%	100.0%		128.71	24,000	24,000	-			Citibank, Starbucks
			100.0%	95.9%		77.46	959,000	959,000	-		-
330 Madison Avenue												Guggenheim Partners LLC, HSBC Bank AFS,
		-Office	25.0%	88.6%		73.95	809,000	809,000	-		150,000	Jones Lang LaSalle Inc., Wells Fargo, American Century
		-Retail	25.0%	100.0%		299.51	33,000	33,000	-		-	Ann Taylor Retail Inc., Citibank, Starbucks
			25.0%	89.1%		82.79	842,000	842,000	-		150,000
510 Fifth Avenue
		-Retail	100.0%	100.0%		146.29	66,000	66,000	-		-	The North Face, The Yard (lease not yet commenced)
	Total Grand Central						1,867,000	1,867,000	-		150,000

- 46 -

 

NEW YORK SEGMENT
PROPERTY TABLE
						Weighted		Square Feet
						Average				Under Development
			%		%	Annual Rent		Total		or Not Available	Encumbrances
Property			Ownership		Occupancy	PSF (1)		Property	In Service	for Lease	(in thousands) (2)		Major Tenants
NEW YORK (Continued):
Madison/Fifth:
640 Fifth Avenue													Fidelity Investments, Owl Creek Asset Management LP,
		-Office	100.0%		90.6%	$	89.45	245,000	245,000	-			Stifel Financial Corp., GCA Savvian Inc
		-Retail	100.0%		96.1%		906.66	68,000	68,000	-			Victoria's Secret, Dyson (lease not yet commenced)
			100.0%		91.8%		266.99	313,000	313,000	-	$	-
666 Fifth Avenue													Colliers International NY LLC, Fulbright & Jaworski,
		-Office (Office Condo)	49.5%		-		-	1,403,000	-	1,403,000		1,396,637	Integrated Holding Group, Vinson & Elkins LLP
		-Retail (Office Condo)	49.5%		-		-	45,000	-	45,000		-	HSBC Bank USA, Citibank
		-Retail (Retail Condo)	100.0%	(4)	100.0%		434.32	114,000	114,000	-		390,000	Fast Retailing (Uniqlo), Hollister, Tissot
					100.0%		434.32	1,562,000	114,000	1,448,000		1,786,637
595 Madison Avenue													Beauvais Carpets, Levin Capital Strategies LP,
		-Office	100.0%		97.0%		80.09	293,000	293,000	-			Cosmetech Mably Int'l LLC.
		-Retail	100.0%		100.0%		805.31	30,000	30,000	-			Coach, Prada
			100.0%		97.3%		147.45	323,000	323,000	-		-
650 Madison Avenue													Memorial Sloan Kettering Cancer Center, Polo Ralph Lauren,
		-Office	20.1%		94.9%		111.41	525,000	525,000	-		800,000	Willett Advisors LLC
		-Retail	20.1%		100.0%		992.24	67,000	27,000	40,000		-	Bottega Veneta Inc., Moncler USA Inc.
			20.1%		95.5%		211.10	592,000	552,000	40,000		800,000
689 Fifth Avenue
		-Office	100.0%		90.0%		78.24	82,000	82,000	-			Yamaha Artist Services Inc., Brunello Cucinelli USA Inc.
		-Retail	100.0%		100.0%		811.42	18,000	18,000	-			MAC Cosmetics, Massimo Dutti
			100.0%		91.8%		210.21	100,000	100,000	-		-
655 Fifth Avenue
		-Retail	92.5%		100.0%		222.53	57,000	57,000	-		140,000	Ferragamo
697-703 Fifth Avenue (St. Regis - retail)
		-Retail	74.3%		100.0%		2,461.56	26,000	26,000	-		450,000	Swatch Group USA, Harry Winston
	Total Madison/Fifth							2,973,000	1,485,000	1,488,000		3,176,637
Midtown South:
770 Broadway
		-Office	100.0%		98.0%		80.72	990,000	990,000	-		700,000	Facebook, AOL (Verizon), J. Crew
		-Retail	100.0%		100.0%		56.17	168,000	168,000	-		-	Ann Taylor Retail Inc., Bank of America, Kmart Corporation
			100.0%		98.3%		77.16	1,158,000	1,158,000	-		700,000
One Park Avenue													New York University, Clarins USA Inc.,
		-Office	55.0%		92.8%		49.81	870,000	870,000	-		300,000	Public Service Mutual Insurance
		-Retail	55.0%		100.0%		64.52	79,000	79,000	-		-	Bank of Baroda, Citibank, Equinox, Men's Wearhouse
			55.0%		93.4%		51.03	949,000	949,000	-		300,000
4 Union Square South													Burlington Coat Factory, Whole Foods Market, DSW,    Forever 21
		-Retail	100.0%		100.0%		100.69	206,000	206,000	-		116,022
692 Broadway
		-Retail	100.0%		100.0%		88.24	36,000	36,000	-		-	Equinox, AOL
Other
		-Retail	50.0%		-		-	32,000	-	32,000		30,000
	Total Midtown South							2,381,000	2,349,000	32,000		1,146,022

- 47 -

 

NEW YORK SEGMENT
PROPERTY TABLE
					Weighted		Square Feet
					Average				Under Development
			%	%	Annual Rent		Total		or Not Available	Encumbrances
Property			Ownership	Occupancy	PSF (1)		Property	In Service	for Lease	(in thousands) (2)		Major Tenants
NEW YORK (Continued):
Rockefeller Center:
1290 Avenue of the Americas												AXA Equitable Life Insurance, Hachette Book Group Inc.,
												Bryan Cave LLP, Neuberger Berman Group LLC, SSB Realty LLC,
												Cushman & Wakefield, Fitzpatrick,
		-Office	70.0%	99.5%	$	79.95	2,031,000	2,031,000	-	$	950,000	Cella, Harper & Scinto, Columbia University
		-Retail	70.0%	100.0%		170.59	79,000	79,000	-		-	Duane Reade, JPMorgan Chase Bank, Sovereign Bank, Starbucks
			70.0%	99.5%		83.34	2,110,000	2,110,000	-		950,000
608 Fifth Avenue
	(ground leased through 2033)
		-Office	100.0%	95.0%		61.44	93,000	93,000	-
		-Retail	100.0%	100.0%		453.98	44,000	44,000	-			Topshop
			100.0%	96.6%		187.51	137,000	137,000	-		-
	Total Rockefeller Center						2,247,000	2,247,000	-		950,000
Wall Street/Downtown:
40 Fulton Street
		-Office	100.0%	92.6%		38.37	245,000	245,000	-		-	Market News International Inc., Sapient Corp.
		-Retail	100.0%	100.0%		101.90	5,000	5,000	-		-	TD Bank
			100.0%	92.7%		39.64	250,000	250,000	-		-
Soho:
478-486 Broadway - 2 buildings
		-Retail	100.0%	100.0%		238.79	65,000	65,000	-			Topshop, Madewell, J. Crew
		-Residential (10 units)	100.0%	100.0%			20,000	20,000	-
			100.0%				85,000	85,000	-		-
443 Broadway
		-Retail	100.0%	100.0%		112.57	16,000	16,000	-		-	Necessary Clothing
304 Canal Street
		-Retail	100.0%	-		-	4,000	-	4,000
		-Residential (4 units)	100.0%	-			9,000	-	9,000
			100.0%				13,000	-	13,000		-
334 Canal Street
		-Retail	100.0%	-		-	4,000	4,000	-
		-Residential (4 units)	100.0%	100.0%			11,000	11,000	-
			100.0%				15,000	15,000	-		-
155 Spring Street
		-Retail	100.0%	100.0%		116.33	50,000	50,000	-		-	Vera Bradley
148 Spring Street
		-Retail	100.0%	100.0%		148.44	7,000	7,000	-		-
150 Spring Street
		-Retail	100.0%	100.0%		274.05	6,000	6,000	-			Sandro
		-Residential (1 unit)	100.0%	100.0%			1,000	1,000	-
			100.0%				7,000	7,000	-		-
Other
		-Residential (26 units)	100.0%	96.2%		-	35,000	35,000	-		-
	Total Soho						228,000	215,000	13,000		-

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NEW YORK SEGMENT
PROPERTY TABLE
					Weighted		Square Feet
					Average				Under Development
			%	%	Annual Rent		Total		or Not Available	Encumbrances
Property			Ownership	Occupancy	PSF (1)		Property	In Service	for Lease	(in thousands) (2)		Major Tenants
NEW YORK (Continued):
Times Square:
1540 Broadway												Forever 21, Planet Hollywood, Disney, Sunglass Hut,
		-Retail	100.0%	100.0%	$	246.12	160,000	160,000	-	$	-	MAC Cosmetics, U.S. Polo
1535 Broadway (Marriott Marquis - retail and signage)
	(ground and building leased through 2032)
		-Retail	100.0%	46.5%		1,558.06	46,000	46,000	-			T-Mobile, Invicta, Swatch Group USA, Laline
		-Theatre	100.0%	100.0%		13.15	62,000	62,000	-			Nederlander-Marquis Theatre
			100.0%	77.2%		385.07	108,000	108,000	-		-
	Total Times Square						268,000	268,000	-		-
Upper East Side:
828-850 Madison Avenue
		-Retail	100.0%	100.0%		603.91	18,000	18,000	-		80,000	Gucci, Chloe, Cartier, Cho Cheng, Christofle Silver Inc.
677-679 Madison Avenue
		-Retail	100.0%	100.0%		474.15	8,000	8,000	-			Berluti
		-Residential (8 units)	100.0%	50.0%			5,000	5,000	-
			100.0%				13,000	13,000	-		-
759-771 Madison Avenue (40 East 66th)
		-Residential (5 units)	100.0%	100.0%			12,000	12,000	-
		-Retail	100.0%	100.0%		1,124.83	11,000	11,000	-			John Varvatos, Nespresso USA, J. Crew
			100.0%				23,000	23,000	-		-
1131 Third Avenue
		-Retail	100.0%	100.0%		145.66	23,000	23,000	-		-	Nike, Crunch LLC, J.Jill
Other
		-Retail - 2 buildings	100.0%	100.0%		-	15,000	15,000	-
		-Residential (8 units)	100.0%	75.0%			7,000	7,000	-
			100.0%				22,000	22,000	-		-
	Total Upper East Side						99,000	99,000	-		80,000
Long Island City:
33-00 Northern Boulevard (Center Building)
		-Office	100.0%	99.5%		32.92	471,000	471,000	-		60,782	The City of New York, NYC Transit Authority
Chelsea/Meatpacking District:
260 Eleventh Avenue
	(ground leased through 2114)
		-Office	100.0%	100.0%		51.02	184,000	184,000	-		-	The City of New York
85 Tenth Avenue												Google, General Services Administration,
												Telehouse International Corp., L-3 Communications,
		-Office	49.9%	100.0%		81.83	581,000	581,000	-		625,000	Moet Hennessy USA. Inc.
		-Retail	49.9%	100.0%		75.57	45,000	45,000	-		-	IL Posto LLC, Toro NYC Restaurant, L'Atelier
			49.9%	100.0%		81.39	626,000	626,000	-		625,000
	Total Chelsea/Meatpacking District						810,000	810,000	-		625,000

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NEW YORK SEGMENT
PROPERTY TABLE
					Weighted		Square Feet
					Average				Under Development
			%	%	Annual Rent		Total		or Not Available	Encumbrances
Property			Ownership	Occupancy	PSF (1)		Property	In Service	for Lease	(in thousands) (2)		Major Tenants
NEW YORK (Continued):
Upper West Side:
50-70 W 93rd Street
		-Residential (326 units)	49.9%	95.4%			283,000	283,000	-	$	80,000
Tribeca:
Independence Plaza, Tribeca
		-Residential (1,327 units)	50.1%	95.8%			1,185,000	1,185,000	-		550,000
		-Retail	50.1%	100.0%	$	45.31	72,000	60,000	12,000		-	Duane Reade, Food Emporium
			50.1%				1,257,000	1,245,000	12,000		550,000
New Jersey:
Paramus
		-Office	100.0%	94.7%		21.99	129,000	129,000	-		-	Vornado's Administrative Headquarters
Washington D.C.:
3040 M Street
		-Retail	100.0%	86.7%		56.77	44,000	44,000	-		-	Nike
Properties to be Developed:
512 West 22nd Street
		-Office	55.0%	-		-	173,000	-	173,000		61,650
61 Ninth Avenue
	(ground leased through 2115)
		-Office	45.1%	-		-	147,000	-	147,000		90,000
		-Retail	45.1%	-		-	23,000	-	23,000		-	Starbucks (lease not commenced)
			45.1%	-		-	170,000	-	170,000		90,000
606 Broadway (19 East Houston Street)
		-Office	50.0%	-		-	23,000	-	23,000		-
		-Retail	50.0%	-		-	11,000	-	11,000		25,768
			50.0%				34,000	-	34,000		25,768
	Total Properties to be Developed						377,000	-	377,000		177,418
New York Office:
	Total			96.0%	$	70.98	21,973,000	20,227,000	1,746,000	$	8,972,874
	Vornado's Ownership Interest			96.3%	$	68.90	17,829,000	16,962,000	867,000	$	6,062,007
New York Retail:
	Total			97.3%	$	215.95	2,858,000	2,672,000	186,000	$	1,716,094
	Vornado's Ownership Interest			97.1%	$	213.85	2,555,000	2,464,000	91,000	$	1,561,860
New York Residential:
	Total			96.0%			1,568,000	1,559,000	9,000	$	630,000
	Vornado's Ownership Interest			95.7%			835,000	826,000	9,000	$	315,470

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NEW YORK SEGMENT
PROPERTY TABLE
					Weighted		Square Feet
					Average				Under Development
			%	%	Annual Rent		Total		or Not Available	Encumbrances
Property			Ownership	Occupancy	PSF (1)		Property	In Service	for Lease	(in thousands) (2)		Major Tenants
NEW YORK (Continued):
ALEXANDER'S, INC.:
New York:
731 Lexington Avenue, Manhattan
		-Office	32.4%	100.0%	$	113.95	889,000	889,000	-	$	300,000	Bloomberg
		-Retail	32.4%	100.0%		185.06	174,000	174,000	-		350,000	Hennes & Mauritz, The Home Depot, The Container Store
			32.4%	100.0%		124.66	1,063,000	1,063,000	-		650,000
Rego Park I, Queens (4.8 acres)			32.4%	100.0%		40.55	343,000	343,000	-		78,246	Sears, Burlington Coat Factory, Bed Bath & Beyond, Marshalls
Rego Park II (adjacent to Rego Park I),
	Queens (6.6 acres)		32.4%	99.9%		44.79	609,000	609,000	-		259,901	Century 21, Costco, Kohl's, TJ Maxx, Toys "R" Us
Flushing, Queens (5) (1.0 acre)			32.4%	100.0%		17.36	167,000	167,000	-		-	New World Mall LLC
The Alexander Apartment Tower,
	Rego Park, Queens, NY
		-Residential (312 units)	32.4%	98.1%		-	255,000	255,000	-		-
New Jersey:
Paramus, New Jersey
	(30.3 acres ground leased to IKEA		32.4%	100.0%		-	-	-	-		68,000	IKEA (ground lessee)
	through 2041)
Property to be Developed:
Rego Park III (adjacent to Rego Park II),			32.4%	-		-	-	-	-		-
	Queens, NY (3.4 acres)
	Total Alexander's			99.8%		77.04	2,437,000	2,437,000	-		1,056,147
Hotel Pennsylvania:
	-Hotel (1,700 Keys)		100.0%	-		-	1,400,000	1,400,000	-		-
Total New York				96.5%	$	86.05	30,236,000	28,295,000	1,941,000	$	12,375,115
Vornado's Ownership Interest				96.5%	$	73.39	23,409,000	22,442,000	967,000	$	8,281,528
(1)		Weighted average annual rent per square foot for office properties excludes garages and diminimous amounts of storage space.  Weighted average annual rent per square foot for retail excludes non-selling space.
(2)		Represents the contractual debt obligations.
(3)		Excludes US Post Office leased through 2038 (including four five-year renewal options) for which the annual escalated rent is $11.70 PSF.
(4)		75,000 square feet is leased from the office condo.
(5)		Leased by Alexander's through January 2037.

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WASHINGTON, DC SEGMENT
PROPERTY TABLE
				Weighted		Square Feet
				Average				Under Development
		%	%	Annual Rent		Total		or Not Available		Encumbrances
Property		Ownership	Occupancy	PSF (1)		Property	In Service	for Lease		(in thousands) (2)		Major Tenants
WASHINGTON, DC:
Crystal City:
2011-2451 Crystal Drive - 5 buildings		100.0%	89.7%	$	43.97	2,325,000	2,325,000	-		$	216,629	General Services Administration, Lockheed Martin, Finmeccanica,
												Conservation International, Smithsonian Institution,
												Natl. Consumer Coop. Bank, Council on Foundations,
												Vornado/Charles E. Smith Headquarters, KBR, Scitor Corp.,
												Food Marketing Institute, American Diabetes Association
S. Clark Street/12th Street - 5 buildings		100.0%	83.2%		37.05	1,546,000	1,546,000	-			53,708	General Services Administration, L-3 Communications,
												The Int'l Justice Mission, Management Systems International
1550-1750 Crystal Drive/		100.0%	86.8%		38.57	1,482,000	1,452,000	30,000	*		37,307	General Services Administration,
	241-251 18th Street - 4 buildings											Chemonics, Dominion Dental, Booz Allen,
												Arete Associates, Battelle Memorial Institute
1800, 1851 and 1901 South Bell Street		100.0%	100.0%		41.75	869,000	377,000	492,000	*		-	General Services Administration, Lockheed Martin,
	- 3 buildings											University of Phoenix, Inc.
2100/2200 Crystal Drive - 2 buildings		100.0%	73.0%		36.93	532,000	532,000	-			-	General Services Administration, Deloitte LLP,
												Public Broadcasting Service
223 23rd Street		100.0%	-		-	147,000	-	147,000	*		-
2001 Jefferson Davis Highway		100.0%	52.4%		32.15	162,000	162,000	-			-	Institute for the Psychology Sciences, VT Aepco, Inc.
Crystal City Shops at 2100		100.0%	94.6%		24.15	80,000	80,000	-			-	Various
Crystal Drive Retail		100.0%	100.0%		49.78	57,000	57,000	-			-	Various
Total Crystal City		100.0%	86.0%		40.16	7,200,000	6,531,000	669,000			307,644
Central Business District:
1825-1875 Connecticut Avenue, NW		100.0%	99.0%		46.33	686,000	686,000	-			185,000	Family Health International, WeWork
	Universal Buildings - 2 buildings
1299 Pennsylvania Avenue, NW		55.0%	92.4%		65.47	622,000	622,000	-			273,000	Baker Botts LLP, General Electric, Cooley LLP,
	Warner Building											Facebook, Live Nation, APCO Worldwide Inc
2101 L Street, NW		100.0%	99.0%		67.60	380,000	380,000	-			143,415	Greenberg Traurig, LLP, US Green Building Council,
												American Insurance Association, RTKL Associates, DTZ
875 15th Street, NW - Bowen Building		100.0%	84.5%		70.04	231,000	231,000	-			-	Paul Hastings LLP, General Services Administration
1101 17th Street, NW		55.0%	99.4%		49.05	216,000	216,000	-			31,000	AFSCME, Verto Solutions
1730 M Street, NW		100.0%	92.3%		46.54	205,000	205,000	-			14,853	General Services Administration
	(ground leased through 2061)
1700 M Street		100.0%	-		-	333,000	-	333,000			28,728

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WASHINGTON, DC SEGMENT
PROPERTY TABLE
				Weighted		Square Feet
				Average				Under Development
	%		%	Annual Rent		Total		or Not Available		Encumbrances
Property	Ownership		Occupancy	PSF (1)		Property	In Service	for Lease		(in thousands) (2)		Major Tenants
WASHINGTON, DC (Continued):
Central Business District (Continued):
1501 K Street, NW	5.0%		91.5%	$	66.83	402,000	402,000	-		$	-	Sidley Austin LLP, UBS
1399 New York Avenue, NW	100.0%		75.2%		77.96	129,000	129,000	-			-	Abbott Laboratories, Abbvie US LLC
Total Central Business District			94.2%		58.10	3,204,000	2,871,000	333,000			675,996
Rosslyn/Ballston:
2200/2300 Clarendon Blvd	100.0%		94.6%		46.31	639,000	639,000	-			11,000	Arlington County, General Services Administration,
(Courthouse Plaza) - 2 buildings												AMC Theaters
(ground leased through 2062)
Rosslyn Plaza - 4 buildings	46.2%		64.0%		42.15	741,000	493,000	248,000	*		38,366	General Services Administration, Corporate Executive Board,
												Nathan Associates, Inc.
Total Rosslyn/Ballston			86.4%		45.43	1,380,000	1,132,000	248,000			49,366
Reston:
Commerce Executive - 3 buildings	100.0%	`	94.1%		35.32	407,000	393,000	14,000	*		-	L-3 Communications, Allworld Language Consultants,
												BT North America, Applied Information Sciences, Clarabridge Inc.
Rockville/Bethesda:
Democracy Plaza One	100.0%		97.6%		32.34	214,000	214,000	-			-	National Institutes of Health
(ground leased through 2084)
Total Washington, DC office properties(3)			88.0%	$	45.40	12,405,000	11,141,000	1,264,000		$	1,033,006
Vornado's Ownership Interest			88.3%	$	44.05	11,248,000	10,123,000	1,125,000		$	877,180

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WASHINGTON, DC SEGMENT
PROPERTY TABLE
					Weighted		Square Feet
					Average				Under Development
		%	%		Annual Rent		Total		or Not Available		Encumbrances
Property		Ownership	Occupancy		PSF (1)		Property	In Service	for Lease		(in thousands) (2)		Major Tenants
WASHINGTON, DC (Continued):
Residential:
For rent residential:
RiverHouse Apartments - 3 buildings
	(1,670 units)	100.0%	97.7%		$	-	1,802,000	1,802,000	-		$	307,710
WestEnd25 (283 units)		100.0%	97.2%			-	273,000	273,000	-			100,841
220 20th Street (265 units)		100.0%	97.7%			-	269,000	269,000	-			68,426
2221 South Clark Street (216 units)		100.0%	100.0%			-	171,000	171,000	-			-	WeWork (residential and office)
The Bartlett - 1 building
	-Residential (699 units)	100.0%	75.3 %	(4)		-	577,000	434,000	143,000
	-Retail	100.0%	100.0%			-	43,000	43,000	-				Whole Foods
		100.0%					620,000	477,000	143,000			-
Rosslyn Plaza - 2 buildings (196 units)		43.7%	96.9%			-	253,000	253,000	-			-
Total Residential			97.8%			-	3,388,000	3,245,000	143,000			476,977
Other:
Crystal City Hotel		100.0%	100.0%			-	266,000	266,000	-			-
Met Park/Warehouses - 1 building		100.0%	100.0%			-	129,000	53,000	76,000	*		-
Other - 3 buildings		100.0%	100.0%			-	11,000	11,000	-			-
Total Other			100.0%				406,000	330,000	76,000			-
Total Washington, DC			90.2%		$	45.40	16,199,000	14,716,000	1,483,000		$	1,509,983
Vornado's Ownership Interest			90.5%		$	44.05	14,900,000	13,556,000	1,344,000		$	1,354,157
*  We do not capitalize interest or real estate taxes on this space.
(1)	Weighted average annual rent per square foot excludes ground rent, storage rent, garages and residential.
(2)	Represents the contractual debt obligations.
(3)	Reclassified Fashion Centre Mall/Washington Tower from the Washington, DC segment to Other.

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OTHER
PROPERTY TABLE
				Weighted		Square Feet
				Average				Under Development
		%	%	Annual Rent		Total		or Not Available	Encumbrances
Property		Ownership	Occupancy	PSF (1)		Property	In Service	for Lease	(in thousands) (2)		Major Tenants
555 California Street:
555 California Street		70.0%	98.0%	$	69.34	1,505,000	1,505,000	-	$	579,795	Bank of America, Dodge & Cox, Goldman Sachs & Co.,
											Jones Day, Kirkland & Ellis LLP, Morgan Stanley & Co. Inc.,
											McKinsey & Company Inc., UBS Financial Services,
											KKR Financial, Microsoft Corporation,
											Fenwick & West LLP
315 Montgomery Street		70.0%	55.6%		58.00	233,000	233,000	-		-	Bank of America, Regus
345 Montgomery Street		70.0%	-		-	64,000	-	64,000		-
Total 555 California Street			92.4%	$	68.43	1,802,000	1,738,000	64,000	$	579,795
Vornado's Ownership Interest			92.4%	$	68.43	1,262,000	1,217,000	45,000	$	407,511
theMART:
theMART, Chicago											Motorola Mobility (guaranteed by Google),
											CCC Information Services, Ogilvy Group (WPP),
											Publicis Groupe (MSL Group, Medicus Group, Razorfish),
											1871, Yelp Inc., Paypal, Inc., Allscripts Healthcare,
											Chicago School of Professional Psychology,
											Innovation Development Institute, Inc., Chicago Teachers Union,
	-Office	100.0%	99.2%	$	36.01	1,955,000	1,955,000	-			ConAgra Foods Inc., Allstate Insurance Company,
											Steelcase, Baker, Knapp & Tubbs, Holly Hunt Ltd.,
	-Showroom/Trade show	100.0%	98.5%		45.71	1,609,000	1,609,000	-			Allsteel Inc., Herman Miller Inc., Knoll Inc., Teknion LLC
	-Retail	100.0%	98.8%		46.57	88,000	88,000	-
		100.0%	98.9%		40.41	3,652,000	3,652,000	-	$	675,000
Other (2 properties)		50.0%	100.0%		36.55	19,000	19,000	-		33,701
Total theMART			98.9%	$	40.39	3,671,000	3,671,000	-	$	708,701
Vornado's Ownership Interest			98.9%	$	40.39	3,662,000	3,662,000	-	$	691,850
(1)	Weighted average annual rent per square foot excludes ground rent, storage rent and garages.
(2)	Represents the contractual debt obligations.

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REAL ESTATE FUND
PROPERTY TABLE
				Weighted		Square Feet
	Fund			Average				Under Development
	%		%	Annual Rent		Total		or Not Available	Encumbrances
Property	Ownership		Occupancy	PSF (1)		Property	In Service	for Lease	(in thousands) (3)		Major Tenants
VORNADO CAPITAL PARTNERS
REAL ESTATE FUND:
New York, NY:
Lucida, 86th Street and Lexington Avenue
(ground leased through 2082)											Barnes & Noble, Hennes & Mauritz,
- Retail	100.0%		100.0%	$	221.59	95,000	95,000	-			Sephora, Bank of America
- Residential (39 units)	100.0%		84.6%			59,000	59,000	-
	100.0%					154,000	154,000	-	$	146,000
11 East 68th Street Retail	100.0%		100.0%		682.06	11,000	11,000	-		60,000	Belstaff, Kent & Curwen, Rag & Bone
Crowne Plaza Times Square
- Hotel (795 Keys)
- Retail	75.3%	(2)	100.0%		147.57	46,000	46,000	-
- Office	75.3%	(2)	61.4%		44.33	194,000	194,000	-			American Management Association
	75.3%	(2)	68.8%		64.12	240,000	240,000	-		310,000
501 Broadway	100.0%		100.0%		263.66	9,000	9,000	-		23,000	Capital One
Culver City, CA:
800 Corporate Pointe - 2 buildings	100.0%		96.0%		38.62	246,000	246,000	-		61,735	Ares Management LLC, Meredith Corp., West Publishing Corp.,
											Syska Hennessy Group, Symantec Corp., X Prize Foundation
Miami, FL:
1100 Lincoln Road
- Retail	100.0%		96.3%		209.40	49,000	49,000	-			Anthropologie, Banana Republic
- Theatre	100.0%		100.0%		38.64	79,000	79,000	-			Regal Cinema
	100.0%		98.6%		102.68	128,000	128,000	-		66,000
Total Real Estate Fund	92.5%		89.8%			788,000	788,000	-	$	666,735
Vornado's Ownership Interest	27.4%		86.3%			216,000	216,000	-	$	147,541
(1)  Weighted average annual rent per square foot excludes ground rent, storage rent, garages and residential.
(2)  Vornado's effective ownership through its Real Estate Fund and its co-investment is 33%.
(3)  Represents the contractual debt obligations.

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OTHER
PROPERTY TABLE
			Weighted		Square Feet
			Average			In Service		Under Development
	%	%	Annual Rent		Total	Owned by	Owned By	or Not Available	Encumbrances
Property	Ownership	Occupancy	PSF (1)		Property	Company	Tenant (2)	for Lease	(in thousands) (3)		Major Tenants
OTHER:
New Jersey:
Wayne Town Center, Wayne	100.0%	100.0%	$	29.62	656,000	201,000	443,000	12,000	$	-	JCPenney, Costco, Dick's Sporting Goods,
(ground leased through 2064)											Nordstrom Rack, 24 Hour Fitness
Maryland:
Annapolis
(ground and building leased through 2042)	100.0%	100.0%		8.99	128,000	128,000	-	-		-	The Home Depot
Virginia (Pentagon City):
Fashion Centre Mall(4)	7.5%	96.9%		49.96	869,000	869,000	-	-		410,000	Macy's, Nordstrom
Washington Tower(4)	7.5%	100.0%		45.40	170,000	170,000	-	-		40,000	Computer Science Corp.
Total Other		98.5%	$	39.24	1,823,000	1,368,000	443,000	12,000	$	450,000
Vornado's Ownership Interest		99.8%	$	28.26	862,000	407,000	443,000	12,000	$	34,000
(1)  Weighted average annual rent per square foot excludes ground rent, storage rent, garages and residential.
(2)  Owned by tenant on land leased from the company.
(3)  Represents the contractual debt obligations.
(4)  Reclassified to Other from the Washington, DC segment.

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