Vornado Announces First Quarter 2013 Financial Results

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Vornado Announces First Quarter 2013 Financial Results

PARAMUS, N.J.--(BUSINESS WIRE)-- VORNADO REALTY TRUST (New York Stock Exchange: VNO) filed its Form 10-Q for the quarter ended March 31, 2013 today and reported:

First Quarter 2013 Results


NET INCOME attributable to common shareholders for the quarter ended March 31, 2013 was $232.0 million, or $1.24 per diluted share, compared to $233.7 million, or $1.25 per diluted share for the quarter ended March 31, 2012. Net income for the quarters ended March 31, 2013 and 2012 include $202.8 million and $56.5 million, respectively, of net gains on sale of real estate, and $5.2 million and $8.9 million, respectively, of real estate impairment losses. In addition, the quarters ended March 31, 2013 and 2012 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 March 31, 2013 and 2012 was $72.2 million and $47.1 million, or $0.39 and $0.28 per diluted share, respectively.

FUNDS FROM OPERATIONS attributable to common shareholders plus assumed conversions ("FFO") for the quarter ended March 31, 2013 was $201.8 million, or $1.08 per diluted share, compared to $348.5 million, or $1.82 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 March 31, 2013 and 2012 was $213.3 million and $186.9 million, or $1.14 and $0.98 per diluted share, respectively.

(Amounts in thousands, except per share amounts)  For the Three Months Ended March 31,
2013  2012
FFO (1)$201,820 $348,452 
Per Share$1.08 $1.82 
 
Items that affect comparability income (expense):
Stop & Shop litigation settlement income$59,599$-
Toys "R" Us FFO (after a $78,542 impairment loss in 2013)16,684132,288
FFO from discontinued operations, including LNR and discontinued operations of Alexander's26,05339,175
Non-cash impairment loss on J.C. Penney owned shares(39,487)-
Loss on sale of J.C. Penney common shares(36,800)-
(Loss) income from the mark-to-market of J.C. Penney derivative position(22,540)1,045
Preferred share redemptions(9,230)-
Merchandise Mart reduction-in-force and severance costs(2,612)(506)
Other, net(3,773)190 
(12,106)172,192
Noncontrolling interests' share of above adjustments674 (10,602)
Items that affect comparability, net$(11,432)$161,590 
FFO as adjusted for comparability$213,252 $186,862 
Per Share$1.14 $0.98 
 
 
(1) See page 3 for a reconciliation of our net income to FFO for the three months ended March 31, 2013 and 2012.

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.

(tables to follow)

 

VORNADO REALTY TRUST

OPERATING RESULTS FOR THE THREE MONTHS ENDED

MARCH 31, 2013 AND 2012

    
 
 
For the Three Months Ended March 31,
(Amounts in thousands, except per share amounts)20132012
 
Revenues$721,016 $669,241 
 
Income from continuing operations$81,866$208,892
Income from discontinued operations207,061 71,372 
Net income288,927280,264
Less net income attributable to noncontrolling interests in:
Consolidated subsidiaries(11,286)(9,597)
Operating Partnership(13,933)(15,271)
Preferred unit distributions of the Operating Partnership(786)(3,874)
Net income attributable to Vornado262,922251,522
Preferred share dividends(21,702)(17,787)
Preferred share redemptions(9,230)- 
Net income attributable to common shareholders$231,990 $233,735 
 
 
Income per common share - Basic:
Income from continuing operations, net$0.20$0.90
Income from discontinued operations, net1.04 0.36 
Net income per common share$1.24 $1.26 
Weighted average shares outstanding186,752 185,370 
 
Income per common share - Diluted:
Income from continuing operations, net$0.20$0.90
Income from discontinued operations, net1.04 0.35 
Net income per common share$1.24 $1.25 
Weighted average shares outstanding187,529 191,886 
 
 
FFO attributable to common shareholders plus assumed conversions$201,820 $348,452 
Per diluted share$1.08 $1.82 
 
FFO as adjusted for comparability$213,252 $186,862 
Per diluted share$1.14 $0.98 
 
Weighted average shares used in determining FFO per diluted share187,529 191,886 
 

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.

The following table reconciles our net income to FFO:
    
(Amounts in thousands)
For the Three Months Ended March 31,
Reconciliation of our net income to FFO:2013 2012 
Net income attributable to Vornado$262,922$251,522
Depreciation and amortization of real property132,513132,558
Net gains on sale of real estate(202,329)(55,817)
Real estate impairment losses1,514-
Proportionate share of adjustments to equity in net income
of Toys, to arrive at FFO:
Depreciation and amortization of real property19,32517,288
Real estate impairment losses3,6507,026
Income tax effect of above adjustments(8,050)(8,497)
Proportionate share of adjustments to equity in net income of
partially owned entities, excluding Toys, to arrive at FFO:
Depreciation and amortization of real property21,83021,376
Net gains on sale of real estate(465)(661)
Real estate impairment losses-1,849
Noncontrolling interests' share of above adjustments1,814 (7,060)
FFO232,724359,584
Preferred share dividends(21,702)(17,787)
Preferred share redemptions(9,230)- 
FFO attributable to common shareholders201,792341,797
Interest on 3.88% exchangeable senior debentures-6,626
Convertible preferred share dividends28 29 
FFO attributable to common shareholders plus assumed conversions$201,820 $348,452 
 

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 sale of depreciated real estate assets, real estate impairment losses, depreciation and amortization expense from real estate assets, extraordinary items and other specified non-cash items, including the pro-rata share of such adjustments of unconsolidated subsidiaries. FFO and FFO per diluted share are 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 before certain items that affect comparability. Although this non-GAAP measure clearly differs from NAREIT's definition of FFO, we believe it provides a meaningful presentation of operating performance. A reconciliation of FFO to FFO as adjusted for comparability is provided on page 1 of this press release.

Conference Call and Audio Webcast

As previously announced, the Company will host a quarterly earnings conference call and audio webcast on May 7, 2013 at 10:00 a.m. Eastern Time (ET). The conference call can be accessed by dialing 877-261-8990 (domestic) or 847-619-6441 (international) and indicating to the operator the passcode 34754725. A telephonic replay of the conference call will be available from 12:30 p.m. EDT on May 7, 2013 through June 6, 2013. To access the replay, please dial 888-843-7419 and enter the passcode 34754725#. 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.



Vornado Realty Trust
Joseph Macnow, 201-587-1000

KEYWORDS:   United States  North America  New Jersey

INDUSTRY KEYWORDS:

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