Vornado Announces Second Quarter 2025 Financial Results
04-Aug-2025 16:24:33 EDT
Vornado Announces Second Quarter 2025 Financial Results
GlobeNewswire August 04, 2025
NEW YORK, Aug. 04, 2025 (GLOBE NEWSWIRE) — Vornado Realty Trust (NYSE: VNO) reported today:
Quarter Ended June 30, 2025 Financial Results
NET INCOME attributable to common shareholders for the quarter ended June 30, 2025 was $743,819,000, or $3.70 per diluted share, compared to $35,260,000, or $0.18 per diluted share, for the prior year's quarter. The increase is primarily due to the $803,248,000 gain related to the 770 Broadway master lease with New York University (“NYU”).
FUNDS FROM OPERATIONS (“FFO”) attributable to common shareholders plus assumed conversions (non-GAAP) for the quarter ended June 30, 2025 was $120,928,000, or $0.60 per diluted share, compared to $148,944,000, or $0.76 per diluted share, for the prior year's quarter. Adjusting for the items that impact period-to-period comparability listed in the table on the following page, FFO attributable to common shareholders plus assumed conversions, as adjusted (non-GAAP) for the quarter ended June 30, 2025 was $113,324,000, or $0.56 per diluted share, and $112,766,000, or $0.57 per diluted share, for the prior year's quarter.
Six Months Ended June 30, 2025 Financial Results
NET INCOME attributable to common shareholders for the six months ended June 30, 2025 was $830,661,000, or $4.14 per diluted share, compared to $26,226,000, or $0.13 per diluted share, for the six months ended June 30, 2024. The increase is primarily due to the $803,248,000 gain related to the 770 Broadway master lease with NYU, the $76,162,000 net gain recognized upon the disposition of a portion of the 666 Fifth condominium to UNIQLO, and the $17,240,000 reversal of PENN 1 rent expense previously accrued following the April 2025 rent reset determination.
FFO attributable to common shareholders plus assumed conversions (non-GAAP) for the six months ended June 30, 2025 was $256,028,000, or $1.27 per diluted share, compared to $253,068,000, or $1.29 per diluted share, for the six months ended June 30, 2024. Adjusting for the items that impact period-to-period comparability listed in the table on the following page, FFO attributable to common shareholders plus assumed conversions, as adjusted (non-GAAP) for the six months ended June 30, 2025 was $239,628,000, or $1.19 per diluted share, and $221,608,000, or $1.13 per diluted share, for the six months ended June 30, 2024.
The following table reconciles FFO attributable to common shareholders plus assumed conversions (non-GAAP) to FFO attributable to common shareholders plus assumed conversions, as adjusted (non-GAAP):
(Amounts in thousands, except per share amounts)
For the Three Months Ended June 30,
For the Six Months Ended June 30,
2025
2024
2025
2024
FFO attributable to common shareholders plus assumed conversions (non-GAAP)(1)
$
120,928
$
148,944
$
256,028
$
253,068
Per diluted share (non-GAAP)
$
0.60
$
0.76
$
1.27
$
1.29
Certain (income) expense items that impact FFO attributable to common shareholders plus assumed conversions:
Gain on sale of Canal Street condominium units
$
(8,362
)
$
—
$
(10,337
)
$
—
Deferred tax liability on our investment in the Farley Building (held through a taxable REIT subsidiary)
3,337
2,599
6,542
6,733
Our share of the gain on the discounted extinguishment of the 280 Park Avenue mezzanine loan
—
(31,215
)
—
(31,215
)
After-tax net gain on sale of 220 Central Park South (“220 CPS”) condominium units and ancillary amenities
—
(13,069
)
(11,110
)
(13,069
)
Other
(3,217
)
2,252
(2,895
)
3,261
(8,242
)
(39,433
)
(17,800
)
(34,290
)
Noncontrolling interests' share of above adjustments on a dilutive basis
638
3,255
1,400
2,830
Total of certain (income) expense items that impact FFO attributable to common shareholders plus assumed conversions, net
$
(7,604
)
$
(36,178
)
$
(16,400
)
$
(31,460
)
Per diluted share (non-GAAP)
$
(0.04
)
$
(0.19
)
$
(0.08
)
$
(0.16
)
FFO attributable to common shareholders plus assumed conversions, as adjusted (non-GAAP)
$
113,324
$
112,766
$
239,628
$
221,608
Per diluted share (non-GAAP)
$
0.56
$
0.57
$
1.19
$
1.13
________________________________
(1)
See page 10 for a reconciliation of net income attributable to common shareholders to FFO attributable to common shareholders plus assumed conversions (non-GAAP) for the three and six months ended June 30, 2025 and 2024.
FFO, as Adjusted Bridge – Q2 2025 vs. Q2 2024
The following table bridges our FFO attributable to common shareholders plus assumed conversions, as adjusted (non-GAAP) for the three months ended June 30, 2024 to FFO attributable to common shareholders plus assumed conversions, as adjusted (non-GAAP) for the three months ended June 30, 2025:
(Amounts in millions, except per share amounts)
FFO, as Adjusted
Amount
Per Share
FFO attributable to common shareholders plus assumed conversions, as adjusted (non-GAAP) for the three months ended June 30, 2024
$
112.8
$
0.57
Increase / (decrease) in FFO, as adjusted due to:
Changes in the tax assessed value of THE MART, net of tenant reimbursements
9.2
Interest income (primarily redemption of Retail JV preferred equity)
(5.8
)
Asset sales
(3.3
)
Variable businesses (primarily signage)
2.4
FFO impact of NYU master lease at 770 Broadway
1.1
Rent commencements, net of lease expirations
0.8
Interest expense
(0.4
)
Other, net (primarily leasing overrides in Q2 2024)
(3.9
)
0.1
Noncontrolling interests' share of above items and impact of assumed conversions of convertible securities
0.4
Net increase
0.5
0.00
Share count dilution
(0.01
)
FFO attributable to common shareholders plus assumed conversions, as adjusted (non-GAAP) for the three months ended June 30, 2025
$
113.3
$
0.56
See page 10 for a reconciliation of net income attributable to common shareholders to FFO attributable to common shareholders plus assumed conversions (non-GAAP) for the three and six months ended June 30, 2025 and 2024. Reconciliations of FFO attributable to common shareholders plus assumed conversions to FFO attributable to common shareholders plus assumed conversions, as adjusted are provided above.
770 Broadway
On May 5, 2025, we completed a master lease with NYU to lease 1,076,000 square feet at 770 Broadway, on an “as is”, triple net basis for a 70-year lease term. Under the terms of the master lease, a rental agreement under Section 467 of the Internal Revenue Code, NYU made a prepaid lease payment of $935,000,000 and will also make annual lease payments of $9,281,000 during the lease term. NYU has an option to purchase the leased premises in both 2055 and at the end of the lease term in 2095. NYU assumed the existing office leases at the property.
We used a portion of the prepaid lease payment to repay the $700,000,000 mortgage loan which previously encumbered the property.
We retained the 92,000 square feet retail condominium leased to Wegmans.
In connection with the transaction, we recorded a gain on sales-type lease of $803,248,000.
PENN 1 Ground Rent Reset Determination
On April 22, 2025, an arbitration panel (the “Panel”) appointed to determine the ground rent payable by Vornado's subsidiary for the PENN 1 land parcel for the 25-year period beginning June 17, 2023 determined that the annual rent payable will be $15,000,000.
On July 21, 2025, the ground lessor filed a motion in New York County Supreme Court to vacate the Panel's ground rent determination. We believe the motion is entirely without merit and intend to vigorously oppose it.
Further, litigation is currently pending between the parties in New York County Supreme Court regarding a separate point relating to the matter. The court denied our motion to dismiss that action and we have filed a notice of appeal. The Panel's decision provides that if the fee owner prevails in a final judgment in that litigation, the annual rent for the 25-year term will be $20,220,000, retroactive to June 17, 2023.
We were accruing $26,205,000 per annum of ground rent based on a previous estimate and therefore, in connection with the Panel's determination, we reversed $17,240,000 of previously accrued rent expense during the six months ended June 30, 2025. Additionally, commencing in the first quarter of 2025, we are now paying based on the $15,000,000 annual rent.
Dispositions
666 Fifth Avenue (Fifth Avenue and Times Square JV)
On January 8, 2025, the Fifth Avenue and Times Square JV completed the sale to UNIQLO of the portion of its U.S. flagship store at 666 Fifth Avenue owned by the joint venture for $350,000,000 and realized net proceeds of $342,000,000. The net proceeds were used to partially redeem Vornado's preferred equity on the asset. The joint venture continues to own 23,832 square feet of retail space (7,416 square feet at grade) at 666 Fifth Avenue consisting of the Abercrombie & Fitch and Tissot stores. We recognized a financial statement gain of $76,162,000, which is included in “income from partially owned entities” on our consolidated statements of income.
220 Central Park South
During the six months ended June 30, 2025, we closed on the sale of two condominium units and ancillary amenities at 220 CPS for net proceeds of $24,839,000, resulting in a financial statement net gain of $13,702,000 which is included in “net gains on disposition of wholly owned and partially owned assets” on our consolidated statements of income. In connection with these sales, $2,592,000 of income tax expense was recognized on our consolidated statements of income. Two units remain unsold.
Canal Street Condominium Units
During the six months ended June 30, 2025, we closed on the sale of six residential condominium units at 304-306 Canal Street and 334 Canal Street for net proceeds of $21,633,000, resulting in a financial statement net gain of $10,337,000 which is included in “net gains on disposition of wholly owned and partially owned assets” on our consolidated statements of income. Two units remain unsold.
512 West 22nd Street
On May 13, 2025, a joint venture, in which we have a 55.0% interest, entered into an agreement to sell 512 West 22nd Street, a 173,000 square foot office building, for $205,000,000. A portion of the proceeds will be used by the joint venture to repay the $123,650,000 mortgage loan encumbering the property. The sale is expected to close in the third quarter of 2025 and is subject to customary closing conditions. We expect to recognize an approximate $11,000,000 financial statement gain.
49 West 57th Street
On June 26, 2025, a joint venture, in which we own a 50.0% interest, completed the sale of the 49 West 57th Street commercial condominium. We received net proceeds of $8,650,000 and recognized a financial statement net gain of $2,527,000 which is included in “income from partially owned entities” on our consolidated statements of income.
Financing Activity
Senior Unsecured Notes due 2025
We repaid our $450,000,000 3.50% senior unsecured notes on their January 15, 2025 maturity date.
1535 Broadway (Fifth Avenue and Times Square JV)
On April 14, 2025, the Fifth Avenue and Times Square JV completed a $450,000,000 financing of 1535 Broadway. The interest-only non-recourse loan bears interest at a fixed rate of 6.90% and matures in May 2030. After transaction costs and reserves, $407,000,000 of the net proceeds from the financing were used to partially redeem Vornado's Fifth Avenue and Times Square JV preferred equity.
Sustainability Margin Adjustment
In April 2025, we qualified for a sustainability margin adjustment on our unsecured term loan and revolving credit facilities by achieving certain KPI metrics, which reduced our interest rate by 0.05% and 0.04%, respectively.
Independence Plaza On June 5, 2025, a joint venture, in which we have a 50.1% interest, completed a $675,000,000 refinancing of Independence Plaza, a 1,328 unit residential complex in the Tribeca submarket of Manhattan. The interest-only non-recourse loan bears interest at a fixed rate of 5.84% and matures in June 2030. The loan replaces the previous $675,000,000 non-recourse loan that was scheduled to mature in July 2025 and bore interest at 4.25%.
PENN 11
On July 16, 2025, we completed a $450,000,000 refinancing of PENN 11, a 1,200,000 square foot Manhattan office building. The five-year interest-only loan matures in August 2030 and has a fixed rate of 6.35%. We paid down by $50,000,000 the prior $500,000,000 loan that bore interest at a rate of SOFR plus 2.06% (swapped to an all-in fixed rate of 6.28%) and was scheduled to mature in October 2025. The swap was terminated at the time of refinancing and we received $130,000 of proceeds.
Leasing Activity
The leasing activity and related statistics in the tables below and on the following page 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(1)
Retail
THE MART
Three Months Ended June 30, 2025
Total square feet leased
1,479
57
127
Our share of square feet leased:
1,414
48
127
Initial rent(2)
$
101.44
$
96.77
$
50.87
Weighted average lease term (years)
6.8
8.1
5.6
Second generation relet space:
Square feet
240
44
104
GAAP basis:
Straight-line rent(3)
$
97.64
$
98.10
$
45.03
Prior straight-line rent
$
87.35
$
90.95
$
47.09
Percentage increase (decrease)
11.8
%
7.9
%
(4.4
)%
Cash basis (non-GAAP):
Initial rent(2)
$
102.61
$
91.99
$
51.80
Prior escalated rent
$
94.41
$
91.68
$
53.80
Percentage increase (decrease)
8.7
%
0.3
%
(3.7
)%
Tenant improvements and leasing commissions:
Per square foot
$
89.15
$
47.02
$
51.05
Per square foot per annum
$
13.11
$
5.80
$
9.12
Percentage of initial rent
12.9
%
6.0
%
17.9
%
_________________ See notes on the following page
Leasing Activity – continued
(Square feet in thousands)
New York
555 California
Office(1)
Retail
THE MART
Street
Six Months Ended June 30, 2025
Total square feet leased
2,188
82
210
222
Our share of square feet leased:
2,099
66
210
155
Initial rent(2)
$
97.48
$
130.89
$
51.05
$
120.65
Weighted average lease term (years)
12.1
9.8
6.6
13.1
Second generation relet space:
Square feet
494
54
146
155
GAAP basis:
Straight-line rent(3)
$
88.68
$
110.54
$
46.99
$
132.08
Prior straight-line rent
$
80.08
$
90.73
$
49.29
$
110.28
Percentage increase (decrease)
10.7
%
21.8
%
(4.7
)%
19.8
%
Cash basis (non-GAAP):
Initial rent(2)
$
93.40
$
100.07
$
51.76
$
121.04
Prior escalated rent
$
86.76
$
92.04
$
55.72
$
117.37
Percentage increase (decrease)
7.7
%
8.7
%
(7.1
)%
3.1
%
Tenant improvements and leasing commissions:
Per square foot
$
141.89
$
137.74
$
66.76
$
229.71
Per square foot per annum
$
11.73
$
14.06
$
10.12
$
17.54
Percentage of initial rent
12.0
%
10.7
%
19.8
%
14.5
%
_______________________________
(1)
The leasing statistics other than square feet leased, exclude the impact of the 1,076 square foot master lease to NYU at 770 Broadway.
(2)
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.
(3)
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.
Occupancy
(At Vornado's share)
New York
555 California
Total
Office
Retail
THE MART
Street
Occupancy as of June 30, 2025
85.2
%
86.7
%
67.7
%
78.2
%
92.3
%
Same Store Net Operating Income (“NOI”) (non-GAAP) At Share:
Total
New York
THE MART(2)
555 California Street
Same store NOI at share % increase (decrease)(1):
Three months ended June 30, 2025 compared to June 30, 2024
5.4
%
1.8
%
57.7
%
3.1
%
Six months ended June 30, 2025 compared to June 30, 2024
4.5
%
2.4
%
(3)
34.8
%
4.1
%
Three months ended June 30, 2025 compared to March 31, 2025
4.3
%
0.8
%
57.9
%
(0.4
)%
Same store NOI at share – cash basis % (decrease) increase(1):
Three months ended June 30, 2025 compared to June 30, 2024
(4.8
)%
(8.5
)%
(4)(5)
50.6
%
(12.7
)%
(6)
Six months ended June 30, 2025 compared to June 30, 2024
(2.6
)%
(5.3
)%
(4)(5)
34.5
%
(3.6
)%
(6)
Three months ended June 30, 2025 compared to March 31, 2025
(3.4
)%
(7.4
)%
(4)(5)
43.8
%
(3.9
)%
(6)
____________________
(1)
See pages 12 through 17 for same store NOI at share and same store NOI at share – cash basis reconciliations.
(2)
2025 includes the impact of a reversal of a prior period tax accrual resulting from a property tax reassessment.
(3)
Excludes the impact of the $17,240,000 reversal of previously accrued PENN 1 ground rent. See page 3 for further details.
(4)
Decrease in same store NOI at share – cash basis vs. GAAP basis is primarily due to (i) current period PENN 1 ground rent increase and (ii) GAAP rent commencing on new leases with free rent periods.
(5)
Excludes the impact of the April 2025 $22,361,000 true-up payment for prior period PENN 1 ground rent owed based on the recent rent reset determination. See page 3 for further details.
(6)
Decrease in same store NOI at share cash basis vs. GAAP basis is primarily due to GAAP rent commencing on new leases with free rent periods.
NOI At Share and NOI At Share – Cash Basis:
The elements of our New York and Other NOI at share and NOI at share – cash basis for the three and six months ended June 30, 2025 and 2024 and the three months ended March 31, 2025 are summarized below.
(Amounts in thousands)
For the Three Months Ended
For the Six Months Ended
June 30,
June 30,
2025
2024
March 31, 2025
2025
2024
NOI at share:
New York:
Office(1)
$
173,104
$
178,338
$
191,501
$
364,605
$
346,326
Retail(2)
42,798
48,392
46,115
88,913
95,858
Residential
6,362
6,220
6,192
12,554
12,188
Alexander's
8,315
9,203
9,509
17,824
20,910
Total New York
230,579
242,153
253,317
483,896
475,282
Other:
THE MART(3)
25,197
16,060
15,916
41,113
30,546
555 California Street
18,686
16,800
17,843
36,529
33,329
Other investments
3,211
5,158
6,214
9,425
10,138
Total Other
47,094
38,018
39,973
87,067
74,013
NOI at share
$
277,673
$
280,171
$
293,290
$
570,963
$
549,295
NOI at share – cash basis:
New York:
Office(1)(4)
$
127,579
$
176,915
$
167,457
$
295,036
$
343,285
Retail(2)
39,692
44,700
43,727
83,419
88,573
Residential
5,990
5,947
5,848
11,838
11,637
Alexander's
9,344
10,272
10,538
19,882
25,133
Total New York
182,605
237,834
227,570
410,175
468,628
Other:
THE MART(3)
25,258
16,835
17,517
42,775
31,784
555 California Street
20,684
19,956
18,137
38,821
36,894
Other investments
3,172
4,965
6,147
9,319
9,897
Total Other
49,114
41,756
41,801
90,915
78,575
NOI at share – cash basis
$
231,719
$
279,590
$
269,371
$
501,090
$
547,203
________________________________
(1)
Includes Building Maintenance Services NOI of $7,584, $7,926, $6,936, $14,520 and $15,143 for the three months ended June 30, 2025 and 2024 and March 31, 2025 and the six months ended June 30, 2025 and 2024, respectively.
(2)
2025 includes the impact of the sale of a portion of the 666 Fifth Avenue retail condominium. See page 3 for details.
(3)
2025 includes the impact of a reversal of a prior period tax accrual resulting from a property tax reassessment.
(4)
Includes the impact of the April 2025 payment of $22,361 for prior period PENN 1 ground rent owed based on the recent rent reset determination.
Active Development/Redevelopment Summary as of June 30, 2025:
(Amounts in thousands, except square feet)
(at Vornado's share)
New York segment
Property Rentable Sq. Ft.
Budget
Cash Amount Expended
Remaining Expenditures
Stabilization Year
Projected Incremental Cash Yield
PENN District:
PENN 2
1,815,000
$
750,000
$
717,884
$
32,116
2026
10.2%
Districtwide Improvements
N/A
100,000
78,949
21,051
N/A
N/A
Total PENN District
850,000
(1)
796,833
53,167
Sunset Pier 94 Studios (49.9% interest)
266,000
125,000
(2)
82,805
42,195
2026
10.3%
Total Active Development Projects
$
975,000
$
879,638
$
95,362
________________________________
(1)
Excluding debt and equity carry.
(2)
Represents our 49.9% share of the $350,000 development budget, excluding the $40,000 value of our contributed leasehold interest and net of an estimated $9,000 for our share of development fees and reimbursement for overhead costs incurred by us. During 2024, we fully funded our $34,000 share of cash contributions.
There can be no assurance that the above projects will be completed, completed on schedule or within budget. In addition, there can be no assurance that the Company will be successful in leasing the properties on the expected schedule or at the assumed rental rates.
Conference Call and Audio Webcast
As previously announced, the Company will host a quarterly earnings conference call and an audio webcast on Tuesday, August 5, 2025 at 10:00 a.m. Eastern Time (ET). The conference call can be accessed by dialing 888-317-6003 (domestic) or 412-317-6061 (international) and entering the passcode 9032041. A live webcast of the conference call will be available on Vornado's website at www.vno.com in the Investor Relations section and an online playback of the webcast will be available on the website following the conference call.
Contact
Thomas J. Sanelli (212) 894-7000
Supplemental Data
Further details regarding results of operations, properties and tenants can be accessed at the Company's website www.vno.com. Vornado Realty Trust is a fully – integrated equity real estate investment trust.
Certain statements contained herein may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are not guarantees of future 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 press release. We also note the following forward-looking statements: in the case of our development and redevelopment projects, the estimated completion date, estimated project cost, projected incremental cash yield, stabilization date and cost to complete; estimates of future capital expenditures, dividends to common and preferred shareholders and operating partnership distributions. For a discussion of factors that could materially affect the outcome of our forward-looking statements and our future results and financial condition, see “Risk Factors” in Part I, Item 1A, of our Annual Report on Form 10-K for the year ended December 31, 2024. Currently, some of the factors are interest rate fluctuations and the effects of inflation on our business, financial condition, results of operations, cash flows, operating performance and the effect that these factors have had and may continue to have on our tenants, the global, national, regional and local economies and financial markets and the real estate market in general.
VORNADO REALTY TRUST CONSOLIDATED BALANCE SHEETS
(Amounts in thousands)
As of
Increase (Decrease)
June 30, 2025
December 31, 2024
ASSETS
Real estate, at cost:
Land
$
2,385,812
$
2,434,209
$
(48,397
)
Buildings and improvements
10,560,211
10,439,113
121,098
Development costs and construction in progress
872,493
1,097,395
(224,902
)
Leasehold improvements and equipment
112,832
120,915
(8,083
)
Total
13,931,348
14,091,632
(160,284
)
Less accumulated depreciation and amortization
(4,028,816
)
(4,025,349
)
(3,467
)
Real estate, net
9,902,532
10,066,283
(163,751
)
Right-of-use assets
677,249
678,804
(1,555
)
Net investment in lease
165,634
—
165,634
Cash, cash equivalents, and restricted cash
Cash and cash equivalents
1,204,863
733,947
470,916
Restricted cash
158,435
215,672
(57,237
)
Total
1,363,298
949,619
413,679
Tenant and other receivables
65,210
58,853
6,357
Investments in partially owned entities
2,003,206
2,691,478
(688,272
)
Receivable arising from the straight-lining of rents
700,392
707,020
(6,628
)
Deferred leasing costs, net
326,688
354,882
(28,194
)
Identified intangible assets, net
114,381
118,215
(3,834
)
Other assets
289,906
373,454
(83,548
)
Total assets
$
15,608,496
$
15,998,608
$
(390,112
)
LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND EQUITY
Liabilities:
Mortgages payable, net
$
4,977,526
$
5,676,014
$
(698,488
)
Senior unsecured notes, net
746,588
1,195,914
(449,326
)
Unsecured term loan, net
796,643
795,948
695
Unsecured revolving credit facilities
575,000
575,000
—
Lease liabilities
710,261
749,759
(39,498
)
Accounts payable and accrued expenses
336,524
374,013
(37,489
)
Deferred compensation plan
104,765
114,580
(9,815
)
Other liabilities
347,131
345,511
1,620
Total liabilities
8,594,438
9,826,739
(1,232,301
)
Redeemable noncontrolling interests
750,097
834,658
(84,561
)
Shareholders' equity
6,092,098
5,158,242
933,856
Noncontrolling interests in consolidated subsidiaries
171,863
178,969
(7,106
)
Total liabilities, redeemable noncontrolling interests and equity
$
15,608,496
$
15,998,608
$
(390,112
)
VORNADO REALTY TRUST OPERATING RESULTS
(Amounts in thousands, except per share amounts)
For the Three Months Ended June 30,
For the Six Months Ended June 30,
2025
2024
2025
2024
Revenues
$
441,437
$
450,266
$
903,016
$
886,641
Net income
$
813,227
$
40,099
$
913,051
$
33,826
Less net loss (income) attributable to noncontrolling interests in:
Consolidated subsidiaries
10,981
13,890
21,414
25,872
Operating Partnership
(64,863
)
(3,200
)
(72,752
)
(2,414
)
Net income attributable to Vornado
759,345
50,789
861,713
57,284
Preferred share dividends
(15,526
)
(15,529
)
(31,052
)
(31,058
)
Net income attributable to common shareholders
$
743,819
$
35,260
$
830,661
$
26,226
Income per common share – basic:
Net income per common share
$
3.87
$
0.19
$
4.33
$
0.14
Weighted average shares outstanding
191,984
190,492
191,680
190,460
Income per common share – diluted:
Net income per common share
$
3.70
$
0.18
$
4.14
$
0.13
Weighted average shares outstanding
201,066
194,405
200,927
194,518
FFO attributable to common shareholders plus assumed conversions (non-GAAP)
$
120,928
$
148,944
$
256,028
$
253,068
Per diluted share (non-GAAP)
$
0.60
$
0.76
$
1.27
$
1.29
FFO attributable to common shareholders plus assumed conversions, as adjusted (non-GAAP)
$
113,324
$
112,766
$
239,628
$
221,608
Per diluted share (non-GAAP)
$
0.56
$
0.57
$
1.19
$
1.13
Weighted average shares used in determining FFO attributable to common shareholders plus assumed conversions per diluted share
201,042
196,339
200,927
196,405
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 certain real estate assets, impairment write-downs of certain real estate assets and investments in entities when the impairment is directly attributable to decreases in the value of depreciable real estate held by the entity, depreciation and amortization expense from real estate assets and other specified 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. In addition to FFO attributable to common shareholders plus assumed conversions, we also disclose FFO attributable to common shareholders plus assumed conversions, as adjusted. Although this non-GAAP measure clearly differs from NAREIT's definition of FFO, we believe it provides a meaningful presentation of operating performance. Reconciliations of net income (loss) attributable to common shareholders to FFO attributable to common shareholders plus assumed conversions are provided on the following page. Reconciliations of FFO attributable to common shareholders plus assumed conversions to FFO attributable to common shareholders plus assumed conversions, as adjusted are provided on page 2 of this press release.
VORNADO REALTY TRUST NON-GAAP RECONCILIATIONS
The following table reconciles net income attributable to common shareholders to FFO attributable to common shareholders plus assumed conversions:
(Amounts in thousands, except per share amounts)
For the Three Months Ended June 30,
For the Six Months Ended June 30,
2025
2024
2025
2024
Net income attributable to common shareholders
$
743,819
$
35,260
$
830,661
$
26,226
Per diluted share
$
3.70
$
0.18
$
4.14
$
0.13
FFO adjustments:
Depreciation and amortization of real property
$
103,142
$
97,897
$
207,399
$
194,680
Real estate impairment losses
542
—
542
—
Gain on sales-type lease
(803,248
)
—
(803,248
)
—
Net gains on sale of real estate
—
(873
)
—
(873
)
Our share of partially owned entities:
Net gains on sale of real estate
(2,527
)
—
(79,535
)
—
Depreciation and amortization of real property
24,107
26,458
48,632
52,621
FFO adjustments, net
(677,984
)
123,482
(626,210
)
246,428
Impact of assumed conversion of dilutive convertible securities
385
393
735
776
Noncontrolling interests' share of above adjustments on a dilutive basis
54,708
(10,191
)
50,842
(20,362
)
FFO attributable to common shareholders plus assumed conversions (non-GAAP)
$
120,928
$
148,944
$
256,028
$
253,068
Per diluted share
$
0.60
$
0.76
$
1.27
$
1.29
Reconciliation of weighted average shares outstanding:
Weighted average common shares outstanding
191,984
190,492
191,680
190,460
Effect of dilutive securities:
Share-based payment awards
7,740
3,913
7,572
4,058
Convertible securities
1,318
1,934
1,675
1,887
Denominator for FFO per diluted share
201,042
196,339
200,927
196,405
VORNADO REALTY TRUST NON-GAAP RECONCILIATIONS – CONTINUED
Below is a reconciliation of net income to NOI at share and NOI at share – cash basis for the three and six months ended June 30, 2025 and 2024 and the three months ended March 31, 2025.
(Amounts in thousands)
For the Three Months Ended
For the Six Months Ended June 30,
June 30,
March 31, 2025
2025
2024
2025
2024
Net income
$
813,227
$
40,099
$
99,824
$
913,051
$
33,826
Depreciation and amortization expense
115,574
109,774
116,155
231,729
218,433
General and administrative expense
39,978
38,475
38,597
78,575
76,372
Transaction related costs and other
721
3,361
43
764
4,014
Income from partially owned entities
(16,671
)
(47,949
)
(96,977
)
(113,648
)
(64,228
)
Interest and other investment income, net
(11,056
)
(10,511
)
(8,261
)
(19,317
)
(22,235
)
Interest and debt expense
87,929
98,401
95,816
183,745
188,879
Gain on sales-type lease
(803,248
)
—
—
(803,248
)
—
Net gains on disposition of wholly owned and partially owned assets
(8,488
)
(16,048
)
(15,551
)
(24,039
)
(16,048
)
Income tax expense
4,123
5,284
7,193
11,316
12,024
NOI from partially owned entities
66,227
68,298
67,111
133,338
138,667
NOI attributable to noncontrolling interests in consolidated subsidiaries
(10,643
)
(9,013
)
(10,660
)
(21,303
)
(20,409
)
NOI at share
277,673
280,171
293,290
570,963
549,295
Non-cash adjustments for straight-line rents, amortization of acquired below-market leases, net, and other
(45,954
)
(581
)
(23,919
)
(69,873
)
(2,092
)
NOI at share – cash basis
$
231,719
$
279,590
$
269,371
$
501,090
$
547,203
NOI at share represents total revenues less operating expenses including our share of partially owned entities. NOI at share – cash basis represents NOI at share adjusted to exclude straight-line rental income and expense, amortization of acquired below and above market leases, accruals for ground rent resets yet to be determined, and other non-cash adjustments. We consider NOI at share to be the primary 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 NOI at share – cash basis, we utilize this measure to make investment decisions as well as to compare the performance of our assets to that of our peers. NOI at share and NOI at share – cash basis should not be considered alternatives to net income or cash flow from operations and may not be comparable to similarly titled measures employed by other companies.
VORNADO REALTY TRUST NON-GAAP RECONCILIATIONS – CONTINUED
Same store NOI at share represents NOI at share from operations which are in service in both the current and prior year reporting periods. Same store NOI at share – cash basis is same store NOI at share adjusted to exclude straight-line rental income and expense, amortization of acquired below and above market leases, accruals for ground rent resets yet to be determined, and other non-cash adjustments. We use these non-GAAP measures to (i) facilitate meaningful comparisons of the operational performance of our properties and segments, (ii) make decisions on whether to buy, sell or refinance properties, and (iii) compare the performance of our properties and segments to those of our peers. Same store NOI at share and same store NOI at share – cash basis should not be considered alternatives to net income or cash flow from operations and may not be comparable to similarly titled measures employed by other companies.
Below are reconciliations of NOI at share to same store NOI at share for our New York segment, THE MART, 555 California Street and other investments for the three months ended June 30, 2025 compared to June 30, 2024.
(Amounts in thousands)
Total
New York
THE MART
555 California Street
Other
NOI at share for the three months ended June 30, 2025
$
277,673
$
230,579
$
25,197
$
18,686
$
3,211
Less NOI at share from:
Dispositions
(8
)
166
(174
)
—
—
Development properties
(5,011
)
(5,011
)
—
—
—
Other non-same store income, net
(11,813
)
(7,235
)
—
(1,367
)
(3,211
)
Same store NOI at share for the three months ended June 30, 2025
$
260,841
$
218,499
$
25,023
$
17,319
$
—
NOI at share for the three months ended June 30, 2024
$
280,171
$
242,153
$
16,060
$
16,800
$
5,158
Less NOI at share from:
Dispositions
(3,251
)
(3,061
)
(190
)
—
—
Development properties
(8,880
)
(8,880
)
—
—
—
Other non-same store income, net
(20,653
)
(15,495
)
—
—
(5,158
)
Same store NOI at share for the three months ended June 30, 2024
$
247,387
$
214,717
$
15,870
$
16,800
$
—
Increase in same store NOI at share
$
13,454
$
3,782
$
9,153
$
519
$
—
% increase in same store NOI at share
5.4
%
1.8
%
57.7
%
3.1
%
0.0
%
VORNADO REALTY TRUST NON-GAAP RECONCILIATIONS – CONTINUED
Below are reconciliations of NOI at share – cash basis to same store NOI at share – cash basis for our New York segment, THE MART, 555 California Street and other investments for the three months ended June 30, 2025 compared to June 30, 2024.
(Amounts in thousands)
Total
New York
THE MART
555 California Street
Other
NOI at share – cash basis for the three months ended June 30, 2025
$
231,719
$
182,605
$
25,258
$
20,684
$
3,172
Less NOI at share – cash basis from:
Dispositions
(8
)
166
(174
)
—
—
Development properties
(4,772
)
(4,772
)
—
—
—
Other non-same store expense (income), net
7,078
13,510
—
(3,260
)
(3,172
)
Same store NOI at share – cash basis for the three months ended June 30, 2025
$
234,017
$
191,509
$
25,084
$
17,424
$
—
NOI at share – cash basis for the three months ended June 30, 2024
$
279,590
$
237,834
$
16,835
$
19,956
$
4,965
Less NOI at share – cash basis from:
Dispositions
(2,785
)
(2,611
)
(174
)
—
—
Development properties
(8,639
)
(8,639
)
—
—
—
Other non-same store income, net
(22,256
)
(17,291
)
—
—
(4,965
)
Same store NOI at share – cash basis for the three months ended June 30, 2024
$
245,910
$
209,293
$
16,661
$
19,956
$
—
(Decrease) increase in same store NOI at share – cash basis
$
(11,893
)
$
(17,784
)
$
8,423
$
(2,532
)
$
—
% (decrease) increase in same store NOI at share – cash basis
(4.8
)%
(8.5
)%
50.6
%
(12.7
)%
0.0
%
VORNADO REALTY TRUST NON-GAAP RECONCILIATIONS – CONTINUED
Below are reconciliations of NOI at share to same store NOI at share for our New York segment, THE MART, 555 California Street and other investments for the six months ended June 30, 2025 compared to June 30, 2024.
(Amounts in thousands)
Total
New York
THE MART
555 California Street
Other
NOI at share for the six months ended June 30, 2025
$
570,963
$
483,896
$
41,113
$
36,529
$
9,425
Less NOI at share from:
Dispositions
(114
)
128
(242
)
—
—
Development properties
(11,741
)
(11,741
)
—
—
—
Other non-same store income, net
(39,348
)
(28,101
)
—
(1,822
)
(9,425
)
Same store NOI at share for the six months ended June 30, 2025
$
519,760
$
444,182
$
40,871
$
34,707
$
—
NOI at share for the six months ended June 30, 2024
$
549,295
$
475,282
$
30,546
$
33,329
$
10,138
Less NOI at share from:
Dispositions
(6,541
)
(6,317
)
(224
)
—
—
Development properties
(18,607
)
(18,607
)
—
—
—
Other non-same store income, net
(26,682
)
(16,544
)
—
—
(10,138
)
Same store NOI at share for the six months ended June 30, 2024
$
497,465
$
433,814
$
30,322
$
33,329
$
—
Increase in same store NOI at share
$
22,295
$
10,368
$
10,549
$
1,378
$
—
% increase in same store NOI at share
4.5
%
2.4
%
34.8
%
4.1
%
0.0
%
VORNADO REALTY TRUST NON-GAAP RECONCILIATIONS – CONTINUED
Below are reconciliations of NOI at share – cash basis to same store NOI at share – cash basis for our New York segment, THE MART, 555 California Street and other investments for the six months ended June 30, 2025 compared to June 30, 2024.
(Amounts in thousands)
Total
New York
THE MART
555 California Street
Other
NOI at share – cash basis for the six months ended June 30, 2025
$
501,090
$
410,175
$
42,775
$
38,821
$
9,319
Less NOI at share – cash basis from:
Dispositions
(116
)
128
(244
)
—
—
Development properties
(11,261
)
(11,261
)
—
—
—
Other non-same store (income) expense, net
(7,806
)
4,773
—
(3,260
)
(9,319
)
Same store NOI at share – cash basis for the six months ended June 30, 2025
$
481,907
$
403,815
$
42,531
$
35,561
$
—
NOI at share – cash basis for the six months ended June 30, 2024
$
547,203
$
468,628
$
31,784
$
36,894
$
9,897
Less NOI at share – cash basis from:
Dispositions
(5,561
)
(5,388
)
(173
)
—
—
Development properties
(17,883
)
(17,883
)
—
—
—
Other non-same store income, net
(28,760
)
(18,863
)
—
—
(9,897
)
Same store NOI at share – cash basis for the six months ended June 30, 2024
$
494,999
$
426,494
$
31,611
$
36,894
$
—
(Decrease) increase in same store NOI at share – cash basis
$
(13,092
)
$
(22,679
)
$
10,920
$
(1,333
)
$
—
% (decrease) increase in same store NOI at share – cash basis
(2.6
)%
(5.3
)%
34.5
%
(3.6
)%
0.0
%
VORNADO REALTY TRUST NON-GAAP RECONCILIATIONS – CONTINUED
Below are reconciliations of NOI at share to same store NOI at share for our New York segment, THE MART, 555 California Street and other investments for the three months ended June 30, 2025 compared to March 31, 2025.
(Amounts in thousands)
Total
New York
THE MART
555 California Street
Other
NOI at share for the three months ended June 30, 2025
$
277,673
$
230,579
$
25,197
$
18,686
$
3,211
Less NOI at share from:
Dispositions
(8
)
166
(174
)
—
—
Development properties
(5,011
)
(5,011
)
—
—
—
Other non-same store income, net
(10,632
)
(6,054
)
—
(1,367
)
(3,211
)
Same store NOI at share for the three months ended June 30, 2025
$
262,022
$
219,680
$
25,023
$
17,319
$
—
NOI at share for the three months ended March 31, 2025
$
293,290
$
253,317
$
15,916
$
17,843
$
6,214
Less NOI at share from:
Dispositions
(106
)
(38
)
(68
)
—
—
Development properties
(6,730
)
(6,730
)
—
—
—
Other non-same store income, net
(35,324
)
(28,654
)
—
(456
)
(6,214
)
Same store NOI at share for the three months ended March 31, 2025
$
251,130
$
217,895
$
15,848
$
17,387
$
—
Increase (decrease) in same store NOI at share
$
10,892
$
1,785
$
9,175
$
(68
)
$
—
% increase (decrease) in same store NOI at share
4.3
%
0.8
%
57.9
%
(0.4
)%
0.0
%
VORNADO REALTY TRUST NON-GAAP RECONCILIATIONS – CONTINUED
Below are reconciliations of NOI at share – cash basis to same store NOI at share – cash basis for our New York segment, THE MART, 555 California Street and other investments for the three months ended June 30, 2025 compared to March 31, 2025.
(Amounts in thousands)
Total
New York
THE MART
555 California Street
Other
NOI at share – cash basis for the three months ended June 30, 2025
$
231,719
$
182,605
$
25,258
$
20,684
$
3,172
Less NOI at share – cash basis from:
Dispositions
(8
)
166
(174
)
—
—
Development properties
(4,772
)
(4,772
)
—
—
—
Other non-same store expense (income), net
8,173
14,605
—
(3,260
)
(3,172
)
Same store NOI at share – cash basis for the three months ended June 30, 2025
$
235,112
$
192,604
$
25,084
$
17,424
$
—
NOI at share – cash basis for the three months ended March 31, 2025
$
269,371
$
227,570
$
17,517
$
18,137
$
6,147
Less NOI at share – cash basis from:
Dispositions
(108
)
(38
)
(70
)
—
—
Development properties
(6,489
)
(6,489
)
—
—
—
Other non-same store income, net
(19,303
)
(13,156
)
—
—
(6,147
)
Same store NOI at share – cash basis for the three months ended March 31, 2025
$
243,471
$
207,887
$
17,447
$
18,137
$
—
(Decrease) increase in same store NOI at share – cash basis
$
(8,359
)
$
(15,283
)
$
7,637
$
(713
)
$
—
% (decrease) increase in same store NOI at share – cash basis
