Vornado Realty Trust's Quarterly Report for the Period Ended March 31, 2024

Press release · 05/06 22:42
Vornado Realty Trust's Quarterly Report for the Period Ended March 31, 2024

Vornado Realty Trust's Quarterly Report for the Period Ended March 31, 2024

The financial report for the quarter ended March 31, 2024, provides a concise overview of the company’s financial performance and developments. The report highlights key events and trends, using clear and straightforward language to ensure brevity and clarity.

Overview

Vornado Realty Trust is a fully-integrated REIT that conducts business through the Operating Partnership, in which Vornado owns a 91% interest. Net loss attributable to common shareholders for Q1 2024 was $9 million ($0.05 per share), compared to net income of $5 million ($0.03 per share) in Q1 2023.

Funds from operations (FFO) plus assumed conversions decreased to $104 million ($0.53 per share) from $119 million ($0.61 per share) in the prior year, primarily due to higher interest rates.

Financial Highlights

Metric Q1 2024 Q1 2023 Change
Total Revenues $436M $446M -2%
Net (Loss) Income $(6M) $11M NM
FFO (diluted) $104M $119M -13%

Portfolio Overview

As of March 31, 2024, Vornado’s portfolio consisted of 32.6 million square feet, with 25.2 million square feet at share. Occupancy was 88.2% in New York and 87.2% in other markets.

Leasing Activity

Metric Amount Terms
New York Office 291,000 sf 11.1 years
New York Retail 36,000 sf 3.8 years
The Mart 51,000 sf 4.5 years
555 California St 41,000 sf 5.4 years

Financing Highlights

  • Extended $1.1B mortgage on 280 Park Ave to 2026 (+2 years)
  • Completed $75M refinancing of 435 7th Ave at SOFR + 2.1%
  • Extended $915M credit facility to 2029 at SOFR + 1.2%

Development Updates

  • Continued redevelopment of Penn 2 office building ($750M total cost)
  • Contributed $8M to Sunset Pier 94 Studios JV ($350M total cost)

Balance Sheet

Vornado has $3.0 billion of liquidity, including $1.1 billion of cash and availability on $1.9 billion of credit facilities. This provides capacity to fund operations, capital expenditures, and distributions over the next 12 months.

Bottom Line

Vornado demonstrated solid operating performance and maintained a strong balance sheet in Q1 2024. Key metrics declined year-over-year primarily due to rising interest rates and challenging market conditions. Management took proactive steps to extend debt maturities and improve liquidity. The company remains well-positioned to weather near-term headwinds.