Vornado Announces Fourth Quarter 2012 Financial Results

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Vornado Announces Fourth Quarter 2012 Financial Results

PARAMUS, N.J.--(BUSINESS WIRE)-- VORNADO REALTY TRUST (New York Stock Exchange: VNO) filed its Form 10-K for the year ended December 31, 2012 today and reported:

Fourth Quarter 2012 Results


NET INCOME attributable to common shareholders for the quarter ended December 31, 2012 was $62.6 million, or $0.33 per diluted share, compared to $69.5 million, or $0.37 per diluted share for the quarter ended December 31, 2011. Net income for the quarters ended December 31, 2012 and 2011 includes $281.5 million and $1.9 million, respectively, of net gains on sale of real estate, and $117.9 million and $28.8 million, respectively, of real estate impairment losses. In addition, the quarters ended December 31, 2012 and 2011 include certain other items that affect comparability which are listed in the table below. Adjusting net income attributable to common shareholders for net gains on sale of real estate, real estate impairment losses and the items in the table below, net of amounts attributable to noncontrolling interests, net income attributable to common shareholders for the quarters ended December 31, 2012 and 2011 was $81.3 million and $20.9 million, or $0.43 and $0.11 per diluted share, respectively.

FUNDS FROM OPERATIONS attributable to common shareholders plus assumed conversions ("FFO") for the quarter ended December 31, 2012 was $55.9 million, or $0.30 per diluted share, compared to $280.4 million, or $1.46 per diluted share for the prior year's quarter. Adjusting FFO for certain items that affect comparability which are listed in the table below, FFO for the quarters ended December 31, 2012 and 2011 was $228.6 million and $197.9 million, or $1.22 and $1.03 per diluted share, respectively.

   
(Amounts in thousands, except per share amounts)For the Quarters Ended December 31,
2012  2011 
FFO (1)$55,890 $280,369 
Per Share$0.30 $1.46 
 
Items that affect comparability income (expense):
Non-cash impairment loss on J.C. Penney owned shares$(224,937)$-
(Loss) income from the mark-to-market of J.C. Penney derivative position(22,472)40,120
Non-cash impairment loss on investment in Toys(40,000)-
Accelerated amortization of discount on investment in subordinated debt of Independence Plaza60,396-
1290 Avenue of the Americas and 555 California Street priority return and income tax benefit25,260-
Net gain resulting from Lexington Realty Trust's stock issuance14,116-
FFO attributable to discontinued operations, including our share of discontinued operations
of Alexander's12,73625,398
Recognition of disputed receivable from Stop & Shop-23,521
Other, net(8,825)(1,014)
(183,726)88,025
Noncontrolling interests' share of above adjustments11,056 (5,532)
Items that affect comparability, net$(172,670)$82,493 
FFO as adjusted for comparability$228,560 $197,876 
Per Share$1.22 $1.03 

 

____________________________________________________________

(1) See page 4 for a reconciliation of our net income to FFO for the quarters ended December 31, 2012 and 2011.
 

Year Ended 2012 Results

NET INCOME attributable to common shareholders for the year ended December 31, 2012 was $549.3 million, or $2.94 per diluted share, compared to $601.8 million, or $3.23 per diluted share for the year ended December 31, 2011. Net income for the years ended December 31, 2012 and 2011 includes $487.4 million and $61.4 million, respectively, of net gains on sale of real estate, and $141.6 million and $28.8 million, respectively, of real estate impairment losses. In addition, the years ended December 31, 2012 and 2011 include certain other items that affect comparability which are listed in the table below. Adjusting net income attributable to common shareholders for net gains on sale of real estate, real estate impairment losses and the items in the table below, net of amounts attributable to noncontrolling interests, net income attributable to common shareholders for the years ended December 31, 2012 and 2011 was $384.4 million and $314.1 million, or $2.06 and $1.68 per diluted share, respectively.

FFO for the year ended December 31, 2012 was $818.6 million, or $4.39 per diluted share, compared to $1,231.0 million, or $6.42 per diluted share for the prior year. Adjusting FFO for certain items that affect comparability which are listed in the table below, FFO for the years ended December 31, 2012 and 2011 was $964.1 million and $939.3 million, or $5.17 and $4.90 per diluted share, respectively.

   
(Amounts in thousands, except per share amounts)For the Years Ended December 31,
2012  2011 
FFO (1)$818,565 $1,230,973 
Per Share$4.39 $6.42 
 
Items that affect comparability income (expense):
Non-cash impairment loss on J.C. Penney owned shares$(224,937)$-
(Loss) income from the mark-to-market of J.C. Penney derivative position(75,815)12,984
Non-cash impairment loss on investment in Toys(40,000)-
FFO attributable to discontinued operations, including our share of discontinued operations
of Alexander's68,50191,938
Accelerated amortization of discount on investment in subordinated debt of Independence Plaza60,396-
1290 Avenue of the Americas and 555 California Street priority return and income tax benefit25,260-
After-tax net gain on sale of Canadian Trade Shows19,657-
Net gain resulting from Lexington Realty Trust's stock issuance14,1169,760
Net gain on extinguishment of debt-83,907
Mezzanine loan loss reversal and gain on disposition-82,744
Recognition of disputed receivable from Stop & Shop-23,521
Other, net(2,339)6,440 
(155,161)311,294
Noncontrolling interests' share of above adjustments9,601 (19,594)
Items that affect comparability, net$(145,560)$291,700 
FFO as adjusted for comparability$964,125 $939,273 
Per Share$5.17 $4.90 
 

____________________________________________________________

(1) See page 4 for a reconciliation of our net income to FFO for the years ended December 31, 2012 and 2011.
 

Supplemental Financial Information

Further details regarding the Company's 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, 2012. Such factors include, among others, risks associated with the timing of and costs associated with property improvements, financing commitments and general competitive factors.

 

VORNADO REALTY TRUST

OPERATING RESULTS FOR THE QUARTERS AND YEARS ENDED

DECEMBER 31, 2012 AND 2011

      
 
 
For The QuartersFor The Years
(Amounts in thousands, except per share amounts)Ended December 31,Ended December 31,
2012 2011 2012 2011 
 
Revenues$697,654 $689,959 $2,766,457 $2,732,836 
 
Income from continuing operations50,432105,275408,599578,885
Income (loss) from discontinued operations41,461 (8,288)285,942 161,115 
Net income91,89396,987694,541740,000
Less net income attributable to noncontrolling interests in:
Consolidated Subsidiaries(1,090)(1,143)(32,018)(21,786)
Operating Partnership(3,882)(4,674)(35,327)(41,059)
Preferred unit distributions of the Operating Partnership(786)(3,874)(9,936)(14,853)
Net income attributable to Vornado86,13587,296617,260662,302
Preferred share dividends(20,750)(17,788)(76,937)(65,531)
Discount on preferred share and unit redemptions(2,752)- 8,948 5,000 
Net income attributable to common shareholders$62,633 $69,508 $549,271 $601,771 
 
Net income per common share:
Basic$0.34 $0.38 $2.95 $3.26 
Diluted$0.33 $0.37 $2.94 $3.23 
 
Weighted average shares:
Basic186,267 184,571 185,810 184,308 
Diluted186,866 185,963 186,530 186,021 
 
FFO attributable to common shareholders plus assumed conversions$55,890 $280,369 $818,565 $1,230,973 
Per diluted share$0.30 $1.46 $4.39 $6.42 
 
FFO as adjusted for comparability$228,560 $197,876 $964,125 $939,273 
Per diluted share$1.22 $1.03 $5.17 $4.90 
 
Weighted average shares used in determining FFO per diluted share186,866 191,751 186,530 191,757 
 
 
The following table reconciles our net income to FFO:
      
For The QuartersFor The Years
(Amounts in thousands)Ended December 31,Ended December 31,
2012 2011 2012 2011 
Reconciliation of our net income to FFO:
Net income attributable to Vornado$86,135$87,296$617,260$662,302
Depreciation and amortization of real property125,069152,655504,407530,113
Net gains on sale of real estate(41,998)-(245,799)(51,623)
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