NEW YORK, NY--(Marketwired - February 13, 2017) - VORNADO REALTY TRUST (NYSE: VNO) filed its Form 10-K for the year ended December 31, 2016 today and reported:
Quarter Ended December 31, 2016 Financial Results
- NET INCOME attributable to common shareholders for the quarter ended December 31, 2016 was $651.2 million, or $3.43 per diluted share, compared to $230.7 million, or $1.22 per diluted share, for the prior year's quarter.
- Adjusting net income attributable to common shareholders for the items listed in the table on the following page, net income attributable to common shareholders for the quarters ended December 31, 2016 and 2015 was $56.7 million and $86.4 million, or $0.30 and $0.46 per diluted share, respectively.
- FUNDS FROM OPERATIONS attributable to common shareholders plus assumed conversions ("FFO") for the quarter ended December 31, 2016 was $797.7 million, or $4.20 per diluted share, compared to $259.5 million, or $1.37 per diluted share, for the prior year's quarter.
- Adjusting FFO for the items listed in the table on the following page, FFO for the quarters ended December 31, 2016 and 2015 was $214.7 million and $238.1 million, or $1.13 and $1.26 per diluted share, respectively.
- Net income as adjusted and FFO as adjusted for the quarter ended December 31, 2016 include $41.4 million, or $0.20 per diluted share, for our 33.0% share of a non-cash unrealized loss and related reduction in our carried interest accrual, based on the fourth quarter mark-to-market fair value adjustment of our real estate funds' investment in the Crowne Plaza Times Square Hotel.
Year Ended December 31, 2016 Financial Results
- NET INCOME attributable to common shareholders for the year ended December 31, 2016 was $823.6 million, or $4.34 per diluted share, compared to $679.9 million, or $3.59 per diluted share, for the prior year.
- Adjusting net income attributable to common shareholders for the items listed in the table on the following page, net income attributable to common shareholders for the years ended December 31, 2016 and 2015 was $253.9 million and $310.4 million, or $1.34 and $1.64 per diluted share, respectively.
- FFO for the year ended December 31, 2016 was $1,457.6 million, or $7.66 per diluted share, compared to $1,039.0 million, or $5.48 per diluted share, for the prior year.
- Adjusting FFO for the items listed in the table on the following page, FFO for the years ended December 31, 2016 and 2015 was $886.8 million and $900.9 million, or $4.66 and $4.75 per diluted share, respectively.
- Net income as adjusted and FFO as adjusted for the year ended December 31, 2016 include $41.4 million, or $0.20 per diluted share, for our 33.0% share of a non-cash unrealized loss and related reduction in our carried interest accrual, resulting from the fourth quarter mark-to-market fair value adjustment of our real estate funds' investment in the Crowne Plaza Times Square Hotel.
Supplemental Financial Information
Further details regarding results of operations, properties and tenants can be accessed at the Company's website www.vno.com. Vornado Realty Trust is a fully -- integrated equity real estate investment trust.
Certain statements contained herein may constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. For a discussion of factors that could materially affect the outcome of our forward-looking statements and our future results and financial condition, see "Risk Factors" in Part I, Item 1A, of our Annual Report on Form 10-K for the year ended December 31, 2016. Such factors include, among others, risks associated with the timing of and costs associated with property improvements, financing commitments and general competitive factors.
The following table reconciles our net income to net income, as adjusted:
(Amounts in thousands, except per share amounts)
For the Quarter Ended For the Year Ended
December 31, December 31,
----------------------------------------------------
2016 2015 2016 2015
----------------------------------------------------
Net income attributable
to common shareholders $ 651,181 $ 230,742 $ 823,606 $ 679,856
========== ========== ========== ==========
Per diluted share $ 3.43 $ 1.22 $ 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) (26,037) (12,511)
Default interest on
Skyline properties
mortgage loan (2,480) - (7,823) -
Net (loss) income from
discontinued
operations and sold
properties (117) 13,943 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
Skyline properties
impairment loss - - (160,700) -
Preferred share
issuance costs
(Series J redemption) - - (7,408) -
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) (20,290) (21,260)
Net gains on sale of
real estate 13 - 2,854 4,513
Other 208 1,671 183 3,004
---------- ---------- ---------- ----------
632,149 153,446 606,756 392,036
Noncontrolling
interests' share of
above adjustments (37,676) (9,145) (37,031) (22,581)
---------- ---------- ---------- ----------
Certain items that
impact net income
attributable to common
shareholders, net $ 594,473 $ 144,301 $ 569,725 $ 369,455
========== ========== ========== ==========
Net income attributable
to common shareholders,
as adjusted $ 56,708 $ 86,441 $ 253,881 $ 310,401
========== ========== ========== ==========
Per diluted share $ 0.30 $ 0.46 $ 1.34 $ 1.64
========== ========== ========== ==========
The following table reconciles our FFO to FFO, as adjusted:
(Amounts in thousands, except per share amounts)
For the Quarter Ended For the Year Ended
December 31, December 31,
----------------------------------------------------
2016 2015 2016 2015
----------------------------------------------------
FFO (1) $ 797,734 $ 259,528 $ 1,457,583 $ 1,039,035
============= ========== ========== ==========
Per diluted share $ 4.20 $ 1.37 $ 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) (26,037) (12,511)
Default interest on
Skyline properties
mortgage loan (2,480) - (7,823) -
FFO from discontinued
operations and sold
properties 2,202 22,137 11,923 64,263
Net gains on sale of
residential
condominiums - 4,231 714 6,724
Preferred share issuance
costs (Series J
redemption) - - (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 23,088 606,310 147,008
Noncontrolling interests'
share of above
adjustments (36,949) (1,619) (35,530) (8,850)
------------- ---------- ---------- ----------
Certain items that impact
FFO, net $ 582,996 $ 21,469 $ 570,780 $ 138,158
============= ========== ========== ==========
FFO, as adjusted $ 214,738 $ 238,059 $ 886,803 $ 900,877
============= ========== ========== ==========
Per diluted share $ 1.13 $ 1.26 $ 4.66 $ 4.75
============= ========== ========== ==========
-------------------------
(1) See page 5 for a reconciliation of our net income to FFO for the
quarters and years ended December 31, 2016 and 2015.
VORNADO REALTY TRUST
OPERATING RESULTS FOR THE QUARTERS AND YEARS ENDED
DECEMBER 31, 2016 AND 2015
(Amounts in thousands, except per share amounts)
For the Quarter Ended For the Year Ended
December 31, December 31,
----------------------------------------------------
2016 2015 2016 2015
----------------------------------------------------
Revenues $ 638,260 $ 651,581 $ 2,506,202 $ 2,502,267
========== ========== ========== ==========
Income from continuing
operations $ 703,532 $ 281,560 $ 974,750 $ 807,168
Income from discontinued
operations 1,012 1,984 7,172 52,262
---------- ---------- ---------- ----------
Net income 704,544 283,544 981,922 859,430
Less net loss (income)
attributable to
noncontrolling
interests in:
Consolidated
subsidiaries 5,010 (17,395) (21,351) (55,765)
Operating Partnership (42,244) (15,042) (53,654) (43,231)
---------- ---------- ---------- ----------
Net income attributable
to Vornado 667,310 251,107 906,917 760,434
Preferred share
dividends (16,129) (20,365) (75,903) (80,578)
Preferred share issuance
costs (Series J
redemption) - - (7,408) -
---------- ---------- ---------- ----------
Net income attributable
to common shareholders $ 651,181 $ 230,742 $ 823,606 $ 679,856
========== ========== ========== ==========
Net income per common
share:
Basic $ 3.44 $ 1.22 $ 4.36 $ 3.61
========== ========== ========== ==========
Diluted $ 3.43 $ 1.22 $ 4.34 $ 3.59
========== ========== ========== ==========
Weighted average shares
outstanding:
Basic 189,013 188,537 188,837 188,353
========== ========== ========== ==========
Diluted 190,108 189,688 190,173 189,564
========== ========== ========== ==========
FFO $ 797,734 $ 259,528 $ 1,457,583 $ 1,039,035
========== ========== ========== ==========
Per diluted share $ 4.20 $ 1.37 $ 7.66 $ 5.48
========== ========== ========== ==========
FFO, as adjusted $ 214,738 $ 238,059 $ 886,803 $ 900,877
========== ========== ========== ==========
Per diluted share $ 1.13 $ 1.26 $ 4.66 $ 4.75
========== ========== ========== ==========
Weighted average shares
used in determining FFO
per diluted share 190,108 189,688 190,173 189,564
========== ========== ========== ==========
The following table reconciles our net income to FFO:
(Amounts in thousands, except per share amounts)
For the Quarter Ended For the Year Ended
December 31, December 31,
----------------------------------------------------
2016 2015 2016 2015
----------------------------------------------------
Net income attributable
to common shareholders $ 651,181 $ 230,742 $ 823,606 $ 679,856
========== ========== ========== ==========
Per diluted share $ 3.43 $ 1.22 $ 4.34 $ 3.59
========== ========== ========== ==========
FFO adjustments:
Depreciation and
amortization of real
property $ 133,389 $ 131,910 $ 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 37,275 154,795 143,960
Net gains on sale of
real estate (12) - (2,853) (4,513)
Real estate impairment
losses 792 4,141 6,328 16,758
---------- ---------- ---------- ----------
156,027 30,633 673,567 381,429
Noncontrolling
interests' share of
above adjustments (9,495) (1,869) (41,267) (22,342)
---------- ---------- ---------- ----------
FFO adjustments, net $ 146,532 $ 28,764 $ 632,300 $ 359,087
========== ========== ========== ==========
FFO attributable to
common shareholders $ 797,713 $ 259,506 $ 1,455,906 $ 1,038,943
Convertible preferred
share dividends 21 22 86 92
Earnings allocated to
Out-Performance Plan
units - - 1,591 -
---------- ---------- ---------- ----------
FFO attributable to
common shareholders
plus assumed
conversions $ 797,734 $ 259,528 $ 1,457,583 $ 1,039,035
========== ========== ========== ==========
Per diluted share $ 4.20 $ 1.37 $ 7.66 $ 5.48
========== ========== ========== ==========
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. A reconciliation of our net income to FFO is provided above. In addition to FFO, we also disclose FFO, as adjusted. Although this non-GAAP measure clearly differs from NAREIT's definition of FFO, we believe it provides a meaningful presentation of operating performance. Reconciliations of FFO to FFO, as adjusted are provided on page 3 of this press release.
Conference Call and Audio Webcast
As previously announced, the Company will host a quarterly earnings conference call and an audio webcast on Tuesday, February 14, 2017 at 10:00 a.m. Eastern Time (ET). The conference call can be accessed by dialing 800-708-4540 (domestic) or 847-619-6397 (international) and indicating to the operator the passcode 44159718. A telephonic replay of the conference call will be available from 1:00 p.m. ET on February 14, 2017 through March 16, 2017. To access the replay, please dial 888-843-7419 and enter the passcode 44159718#. A live webcast of the conference call will be available on the Company's website at www.vno.com and an online playback of the webcast will be available on the website for 90 days following the conference call.
CONTACT:
Stephen Theriot
(201) 587-1000
