Vornado Announces Second Quarter 2013 Financial Results
Vornado Announces Second 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 June 30, 2013 today and reported:
Second Quarter 2013 Results
NET INCOME attributable to common shareholders for the quarter ended June 30, 2013 was $145.9 million, or $0.78 per diluted share, compared to $20.5 million, or $0.11 per diluted share for the quarter ended June 30, 2012. Net income for the quarters ended June 30, 2013 and 2012 include $65.7 million and $17.1 million, respectively, of net gains on sale of real estate, and $3.1 million and $14.9 million, respectively, of real estate impairment losses. In addition, the quarters ended June 30, 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 June 30, 2013 and 2012 was $107.9 million and $69.4 million, or $0.58 and $0.37 per diluted share, respectively.
FUNDS FROM OPERATIONS attributable to common shareholders plus assumed conversions ("FFO") for the quarter ended June 30, 2013 was $235.3 million, or $1.25 per diluted share, compared to $166.7 million, or $0.89 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 June 30, 2013 and 2012 was $245.0 million and $198.5 million, or $1.30 and $1.06 per diluted share, respectively.
(Amounts in thousands, except per share amounts) | For the Three Months Ended June 30, | ||||||||
2013 | 2012 | ||||||||
FFO (1) | $ | 235,348 | $ | 166,672 | |||||
Per Share | $ | 1.25 | $ | 0.89 | |||||
Items that affect comparability income (expense): | |||||||||
Toys "R" Us FFO | $ | (25,088) | $ | (7,660) | |||||
Income (loss) from the mark-to-market of J.C. Penney derivative position | 9,065 | (58,732) | |||||||
Preferred unit redemptions | 8,100 | - | |||||||
FFO from discontinued operations, including LNR and discontinued operations of | |||||||||
Alexander's | 985 | 31,885 | |||||||
Acquisition related costs | (3,350) | (2,559) | |||||||
Other, net | (484) | 2,646 | |||||||
(10,772) | (34,420) | ||||||||
Noncontrolling interests' share of above adjustments | 1,127 | 2,604 | |||||||
Items that affect comparability, net | $ | (9,645) | $ | (31,816) | |||||
FFO as adjusted for comparability | $ | 244,993 | $ | 198,488 | |||||
Per Share | $ | 1.30 | $ | 1.06 | |||||
(1) See page 4 for a reconciliation of our net income to FFO for the three months ended June 30, 2013 and 2012. |
First Half 2013 Results
NET INCOME attributable to common shareholders for the six months ended June 30, 2013 was $377.9 million, or $2.01 per diluted share, compared to $254.2 million, or $1.36 per diluted share for the six months ended June 30, 2012. Net income for the six months ended June 30, 2013 and 2012 include $268.5 million and $73.6 million, respectively, of net gains on sale of real estate, and $8.3 million and $23.8 million, respectively, of real estate impairment losses. In addition, the six months ended June 30, 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 six months ended June 30, 2013 and 2012 was $180.4 million and $116.4 million, or $0.96 and $0.62 per diluted share, respectively.
FFO for the six months ended June 30, 2013 was $437.2 million, or $2.33 per diluted share, compared to $516.3 million, or $2.72 per diluted share for the prior year's six months. Adjusting FFO for certain items that affect comparability which are listed in the table below, FFO for the six months ended June 30, 2013 and 2012 was $458.0 million and $386.9 million, or $2.44 and $2.04 per diluted share, respectively.
(Amounts in thousands, except per share amounts) | For the Six Months Ended June 30, | ||||||||||||||||
2013 | 2012 | ||||||||||||||||
FFO (1) | $ | 437,168 | $ | 516,328 | |||||||||||||
Per Share | $ | 2.33 | $ | 2.72 | |||||||||||||
Items that affect comparability income (expense): | |||||||||||||||||
Stop & Shop litigation settlement income | $ | 59,599 | $ | - | |||||||||||||
FFO from discontinued operations, including LNR and discontinued operations of Alexander's | 27,379 | 71,205 | |||||||||||||||
Non-cash impairment loss on J.C Penney common shares | (39,487) | - | |||||||||||||||
Loss on sale of J.C. Penney common shares | (36,800) | - | |||||||||||||||
Loss from the mark-to-market of J.C. Penney derivative position | (13,475) | (57,687) | |||||||||||||||
Toys "R" Us FFO (after a $78,542 impairment loss in 2013) | (8,404) | 124,628 | |||||||||||||||
Acquisition related costs | (3,951) | (3,244) | |||||||||||||||
Preferred unit and share redemptions | (1,130) | - | |||||||||||||||
Other, net | (6,268) | 3,015 | |||||||||||||||
(22,537) | 137,917 | ||||||||||||||||
Noncontrolling interests' share of above adjustments | 1,664 | (8,530) | |||||||||||||||
Items that affect comparability, net | $ | (20,873) | $ | 129,387 | |||||||||||||
FFO as adjusted for comparability | $ | 458,041 | $ | 386,941 | |||||||||||||
Per Share | $ | 2.44 | $ | 2.04 | |||||||||||||
(1) See page 4 for a reconciliation of our net income to FFO for the six months ended June 30, 2013 and 2012. |
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, 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 AND SIX MONTHS ENDED | ||||||||||||||||||||||||
JUNE 30, 2013 AND 2012 | ||||||||||||||||||||||||
For the Three Months | For the Six Months | |||||||||||||||||||||||
Ended June 30, | Ended June 30, | |||||||||||||||||||||||
(Amounts in thousands, except per share amounts) | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||
Revenues | $ | 685,858 | $ | 677,983 | $ | 1,405,837 | $ | 1,346,310 | ||||||||||||||||
Income from continuing operations | $ | 118,331 | $ | 40,359 | $ | 200,126 | $ | 249,252 | ||||||||||||||||
Income from discontinued operations | 63,990 | 17,869 | 271,122 | 89,240 | ||||||||||||||||||||
Net income | 182,321 | 58,228 | 471,248 | 338,492 | ||||||||||||||||||||
Less net income attributable to noncontrolling interests in: | ||||||||||||||||||||||||
Consolidated subsidiaries | (14,930) | (14,721) | (26,216) | (24,318) | ||||||||||||||||||||
Operating Partnership | (8,849) | (1,337) | (22,782) | (16,608) | ||||||||||||||||||||
Preferred unit distributions of the Operating Partnership | (348) | (3,873) | (1,134) | (7,747) | ||||||||||||||||||||
Net income attributable to Vornado | 158,194 | 38,297 | 421,116 | 289,819 | ||||||||||||||||||||
Preferred share dividends | (20,368) | (17,787) | (42,070) | (35,574) | ||||||||||||||||||||
Preferred unit and share redemptions | 8,100 | - | (1,130) | - | ||||||||||||||||||||
Net income attributable to common shareholders | $ | 145,926 | $ | 20,510 | $ | 377,916 | $ | 254,245 | ||||||||||||||||
Income per common share - Basic: | ||||||||||||||||||||||||
Income from continuing operations, net | $ | 0.46 | $ | 0.02 | $ | 0.65 | $ | 0.91 | ||||||||||||||||
Income from discontinued operations, net | 0.32 | 0.09 | 1.37 | 0.46 | ||||||||||||||||||||
Net income per common share | $ | 0.78 | $ | 0.11 | $ | 2.02 | $ | 1.37 | ||||||||||||||||
Weighted average shares outstanding | 186,931 | 185,673 | 186,842 | 185,521 | ||||||||||||||||||||
Income per common share - Diluted: | ||||||||||||||||||||||||
Income from continuing operations, net | $ | 0.46 | $ | 0.02 | $ | 0.65 | $ | 0.91 | ||||||||||||||||
Income from discontinued operations, net | 0.32 | 0.09 | 1.36 | 0.45 | ||||||||||||||||||||
Net income per common share | $ | 0.78 | $ | 0.11 | $ | 2.01 | $ | 1.36 | ||||||||||||||||
Weighted average shares outstanding | 187,720 | 186,342 | 187,627 | 186,271 | ||||||||||||||||||||
FFO attributable to common shareholders plus assumed conversions | $ | 235,348 | $ | 166,672 | $ | 437,168 | $ | 516,328 | ||||||||||||||||
Per diluted share | $ | 1.25 | $ | 0.89 | $ | 2.33 | $ | 2.72 | ||||||||||||||||
FFO as adjusted for comparability | $ | 244,993 | $ | 198,488 | $ | 458,041 | $ | 386,941 | ||||||||||||||||
Per diluted share | $ | 1.30 | $ | 1.06 | $ | 2.44 | $ | 2.04 | ||||||||||||||||
Weighted average shares used in determining FFO per diluted share | 187,720 | 186,391 | 187,627 | 189,701 | ||||||||||||||||||||
The following table reconciles our net income to FFO: | ||||||||||||||||||||||||||||||||||||
(Amounts in thousands) | For the Three Months | For the Six Months | ||||||||||||||||||||||||||||||||||
Ended June 30, | Ended June 30, | |||||||||||||||||||||||||||||||||||
