NEW YORK, May 06, 2024 (GLOBE NEWSWIRE) -- Vornado Realty Trust (NYSE:VNO) reported today: Quarter Ended March 31, 2024 Financial Results NET LOSS attributable to common shareholders for the quarter ended March 31, 2024 was $9,034,000, or $0.05 per diluted share, compared to net income attributable to common shareholders of $5,168,000, or $0.03 per diluted share, for the prior year's quarter. FUNDS FROM OPERATIONS ("FFO") attributable to common shareholders plus assumed conversions (non-GAAP) for the quarter ended March 31, 2024 was $104,129,000, or $0.53 per diluted share, compared to $119,083,000, or $0.61 per diluted share, for the prior year's quarter. Adjusting for the items that impact period-to-period comparability listed in the table below, FFO attributable to common shareholders plus assumed conversions, as adjusted (non-GAAP) for the quarter ended March 31, 2024 was $108,847,000, or $0.55 per diluted share, and $116,288,000, or $0.60 per diluted share, for the prior year's quarter. 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 EndedMarch 31,     2024       2023   FFO attributable to common shareholders plus assumed conversions (non-GAAP)(1) $ 104,129     $ 119,083   Per diluted share (non-GAAP) $ 0.53     $ 0.61           Certain expense (income) items that impact FFO attributable to common shareholders plus assumed conversions:       Deferred tax liability on our investment in the Farley Building (held through a taxable REIT subsidiary) $ 4,134     $ 2,875   After-tax net gain on sale of 220 Central Park South ("220 CPS") condominium units and ancillary amenities   —       (6,173 ) Other   1,009       288       5,143       (3,010 ) Noncontrolling interests' share of above adjustments   (425 )     215   Total of certain expense (income) items that impact FFO attributable to common shareholders plus assumed conversions, net $ 4,718     $ (2,795 ) Per diluted share (non-GAAP) $ 0.02     $ (0.01 )         FFO attributable to common shareholders plus assumed conversions, as adjusted (non-GAAP) $ 108,847     $ 116,288   Per diluted share (non-GAAP) $ 0.55     $ 0.60   ________________________________ (1) See page 9 for a reconciliation of net (loss) income attributable to common shareholders to FFO attributable to common shareholders plus assumed conversions (non-GAAP) for the three months ended March 31, 2024 and 2023.  FFO, as Adjusted Bridge - Q1 2024 vs. Q1 2023 The following table bridges our FFO attributable to common shareholders plus assumed conversions, as adjusted (non-GAAP) for the three months ended March 31, 2023 to FFO attributable to common shareholders plus assumed conversions, as adjusted (non-GAAP) for the three months ended March 31, 2024: (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 March 31, 2023 $ 116.3     $ 0.60           (Decrease) increase in FFO, as adjusted due to:       Lease expirations, rent commencement, and other tenant related items   (4.5 )     Change in interest expense, net of interest income   (3.9 )     Reduced general and administrative expense (primarily stock compensation)   3.6       Other, net   (1.9 )         (6.7 )     Noncontrolling interests' share of above items and impact of assumed conversions of convertible securities   (0.8 )     Net decrease   (7.5 )     (0.05 )         FFO attributable to common shareholders plus assumed conversions, as adjusted (non-GAAP) for the three months ended March 31, 2024 $ 108.8     $ 0.55   See page 9 for a reconciliation of net (loss) income attributable to common shareholders to FFO attributable to common shareholders plus assumed conversions (non-GAAP) for the three months ended March 31, 2024 and 2023. Reconciliations of FFO attributable to common shareholders plus assumed conversions to FFO attributable to common shareholders plus assumed conversions, as adjusted are provided on the previous page. Financing Activity 280 Park Avenue On April 4, 2024, a joint venture, in which we have a 50% interest, amended and extended the $1,075,000,000 mortgage loan on 280 Park Avenue. The maturity date on the amended loan was extended to September 2026, with options to fully extend to September 2028, subject to certain conditions. The interest rate on the amended loan remains at SOFR plus 1.78%. Additionally, on April 4, 2024, the joint venture amended and extended the $125,000,000 mezzanine loan, and subsequently repaid the loan for $62,500,000. 435 Seventh Avenue On April 9, 2024, we completed a $75,000,000 refinancing of 435 Seventh Avenue, of which $37,500,000 is recourse to the Operating Partnership. The interest-only loan bears a rate of SOFR plus 2.10% and matures in April 2028. The interest rate on the loan was swapped to a fixed rate of 6.96% through April 2026. The loan replaces the previous $95,696,000 fully recourse loan, which bore interest at SOFR plus 1.41%. Unsecured Revolving Credit Facility On May 3, 2024, we extended one of our two unsecured revolving credit facilities to April 2029 (as fully extended). The new $915,000,000 facility replaces the existing $1.25 billion facility that was due to mature in April 2026. The new facility currently bears interest at a rate of SOFR plus 1.20% with a facility fee of 25 basis points. Our $1.25 billion revolving credit facility matures in December 2027 (as fully extended) and has an interest rate of SOFR plus 1.14% and a facility fee of 25 basis points. Interest Rate Swap and Cap Arrangements We entered into the following interest rate swap and cap arrangements during the three months ended March 31, 2024: (Amounts in thousands)   Notional Amount(at share)   All-In Swapped Rate   Expiration Date   Variable Rate Spread Interest rate swaps:                 PENN 11(1)   $ 250,000   6.21%   10/25   S+206                           Index Strike Rate         Interest rate caps:                 61 Ninth Avenue (45.1% interest)   $ 75,543   4.39%   01/26   S+146 ________________________________ (1) Together with the existing $250,000 swap arrangement on the $500,000 PENN 11 mortgage loan, the loan will bear interest at an all-in swapped rate of 6.28% through October 2025.  Dispositions On April 12, 2024, we closed on the sale of two condominium units at 220 CPS for net proceeds of $31,605,000; four units remain unsold. Alexander's On May 3, 2024, Alexander's, Inc. ("Alexander's"), in which we own a 32.4% common equity interest, and Bloomberg L.P. reached an agreement to extend the leases covering approximately 947,000 square feet at 731 Lexington Avenue that were scheduled to expire in February 2029 for a term of eleven years to February 2040. Leasing Activity The leasing activity and related statistics 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. For the Three Months Ended March 31, 2024: 291,000 square feet of New York Office space (250,000 square feet at share) at an initial rent of $89.23 per square foot and a weighted average lease term of 11.1 years. The changes in the GAAP and cash mark-to-market rent on the 95,000 square feet of second generation space were positive 2.8% and positive 2.4%, respectively. Tenant improvements and leasing commissions were $12.98 per square foot per annum, or 14.5% of initial rent. 36,000 square feet of New York Retail space (33,000 square feet at share) at an initial rent of $253.83 per square foot and a weighted average lease term of 3.8 years. The changes in the GAAP and cash mark-to-market rent on the 27,000 square feet of second generation space were positive 4.4% and negative 18.1%, respectively. Tenant improvements and leasing commissions were $29.16 per square foot per annum, or 11.5% of initial rent. 51,000 square feet at THE MART (all at share) at an initial rent of $64.02 per square foot and a weighted average lease term of 4.5 years. The changes in the GAAP and cash mark-to-market rent on the 43,000 square feet of second generation space were positive 6.4% and negative 0.1%, respectively. Tenant improvements and leasing commissions were $8.37 per square foot per annum, or 13.1% of initial rent. 41,000 square feet at 315 Montgomery Street in San Francisco (29,000 square feet at share) at an initial rent of $67.57 per square foot and a weighted average lease term of 5.4 years. The changes in the GAAP and cash mark-to-market rent on the 29,000 square feet of second generation space were negative 25.3% and negative 30.1%, respectively. Tenant improvements and leasing commissions were $4.01 per square foot per annum, or 5.9% of initial rent. Occupancy (At Vornado's share) New York   THE MART   555 California Street   Total   Office   Retail     Occupancy as of March 31, 2024 88.2 %   89.3 %   75.0 %   77.6 %   94.5 % Same Store Net Operating Income ("NOI") At Share:   Total   New York   THE MART   555 California Street Same store NOI at share % decrease(1):                 Three months ended March 31, 2024 compared to March 31, 2023 (4.8)%   (4.6)%   (10.0)%   (2.4)%   Three months ended March 31, 2024 compared to December 31, 2023 (6.5)%   (6.7)%   (0.3)%   (8.8)%                     Same store NOI at share - cash basis % decrease(1):                 Three months ended March 31, 2024 compared to March 31, 2023 (5.0)%   (5.1)%   (3.3)%   (4.4)%   Three months ended March 31, 2024 compared to December 31, 2023 (6.3)%   (6.4)%   (3.7)%   (7.3)%   ____________________ (1) See pages 11 through 14 for same store NOI at share and same store NOI at share - cash basis reconciliations. NOI At Share & 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 months ended March 31, 2024 and 2023 and the three months ended December 31, 2023 are summarized below. (Amounts in thousands) For the Three Months Ended   March 31,   December 31, 2023     2024     2023   NOI at share:           New York:           Office(1) $ 167,988   $ 174,270   $ 182,769 Retail   47,466     47,196     47,378 Residential   5,968     5,458     5,415 Alexander's   11,707     9,070     12,013 Total New York   233,129     235,994     247,575 Other:           THE MART   14,486     15,409     14,516 555 California Street   16,529     16,929     18,125 Other investments   4,980     5,151     6,880 Total Other   35,995     37,489     39,521 NOI at share $ 269,124   $ 273,483   $ 287,096 NOI at share - cash basis:           New York:           Office(1) $ 166,370   $ 182,081   $ 183,742 Retail   43,873     44,034     46,491 Residential   5,690     5,051     5,137 Alexander's   14,861     9,861     11,059 Total New York   230,794     241,027     246,429 Other:           THE MART   14,949     14,675     15,511 555 California Street   16,938     17,718     18,265 Other investments   4,932     5,115     7,012 Total Other   36,819     37,508     40,788 NOI at share - cash basis $ 267,613   $ 278,535   $ 287,217 ________________________________ (1) Includes Building Maintenance Services NOI of $7,217, $6,289 and $6,424, respectively, for the three months ended March 31, 2024 and 2023 and December 31, 2023.  Active Development/Redevelopment Summary as of March 31, 2024: (Amounts in thousands, except square feet)                 (at Vornado's share)       Projected IncrementalCash Yield New York segment:   PropertyRentableSq. Ft.   Budget   Cash AmountExpended   Remaining Expenditures   Stabilization Year   PENN District:                             PENN 2   1,795,000   $ 750,000   $ 659,108   $ 90,892   2026     9.5%   Districtwide Improvements   N/A     100,000     52,785     47,215   N/A     N/A   Total PENN District         850,000 (1)   711,893     138,107                                           Sunset Pier 94 Studios (49.9% interest)   266,000     125,000 (2)   7,994     117,006   2026     10.3%                                 Total Active Development Projects       $ 975,000   $ 719,887   $ 255,113             ________________________________ (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. $34,000 will be funded via cash contributions, of which $7,994 has been funded as of March 31, 2024.    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 WebcastAs previously announced, the Company will host a quarterly earnings conference call and an audio webcast on Tuesday, May 7, 2024 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 5722274. 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, 2023. Currently, some of the factors are the increased interest rates and 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 TRUSTCONSOLIDATED BALANCE SHEETS   (Amounts in thousands) As of   Increase(Decrease)   March 31, 2024   December 31, 2023   ASSETS           Real estate, at cost:           Land $ 2,436,221     $ 2,436,221     $ —   Buildings and improvements   10,017,573       9,952,954       64,619   Development costs and construction in progress   1,322,810       1,281,076       41,734   Leasehold improvements and equipment   131,762       130,953       809   Total   13,908,366       13,801,204       107,162