Vornado Announces Fourth Quarter 2024 Financial Results

NEW YORK, Feb. 10, 2025 (GLOBE NEWSWIRE) -- Vornado Realty Trust (NYSE: VNO) reported today: Quarter Ended December 31, 2024 Financial Results NET INCOME attributable to common shareholders for the quarter ended December 31, 2024 was $1,203,000, or $0.01 per diluted share, compared to a net loss attributable to common shareholders of $61,013,000, or $0.32 per diluted share, for the prior year's quarter. FUNDS FROM OPERATIONS ("FFO") attributable to common shareholders plus assumed conversions (non-GAAP) for the quarter ended December 31, 2024 was $117,085,000, or $0.58 per diluted share, compared to $121,105,000, or $0.62 per diluted share, for the prior year's quarter. Adjusting for the items that impact period-to-period comparability listed in the table on the following page, FFO attributable to common shareholders plus assumed conversions, as adjusted (non-GAAP) for the quarter ended December 31, 2024 was $122,212,000, or $0.61 per diluted share, and $123,751,000, or $0.63 per diluted share, for the prior year's quarter. Year Ended December 31, 2024 Financial Results NET INCOME attributable to common shareholders for the year ended December 31, 2024 was $8,275,000, or $0.04 per diluted share, compared to $43,378,000, or $0.23 per diluted share, for the year ended December 31, 2023. FFO attributable to common shareholders plus assumed conversions (non-GAAP) for the year ended December 31, 2024 was $470,021,000, or $2.37 per diluted share, compared to $503,792,000, or $2.59 per diluted share, for the year ended December 31, 2023. Adjusting for the items that impact period-to-period comparability listed in the table on the following page, FFO attributable to common shareholders plus assumed conversions, as adjusted (non-GAAP) for the year ended December 31, 2024 was $447,071,000, or $2.26 per diluted share, and $508,151,000, or $2.61 per diluted share, for the year ended December 31, 2023. The following table reconciles FFO attributable to common shareholders plus assumed conversions (non-GAAP) to FFO attributable to common shareholders plus assumed conversions, as adjusted (non-GAAP): (Amounts in thousands, except per share amounts) For the Three Months Ended December 31, For the Year Ended December 31, 2024 2023 2024 2023 FFO attributable to common shareholders plus assumed conversions (non-GAAP)(1) $117,085 $121,105 $470,021 $503,792 Per diluted share (non-GAAP) $0.58 $0.62 $2.37 $2.59 Certain expense (income) items that impact FFO attributable to common shareholders plus assumed conversions: Deferred tax liability on our investment in the Farley Building (held through a taxable REIT subsidiary) $3,456 $3,526 $14,353 $11,722 Credit losses on investments — 8,269 — 8,269 After-tax net gain on sale of 220 Central Park South ("220 CPS") condominium units and ancillary amenities — (5,786) (13,069) (11,959)Our share of the gain on the discounted extinguishment of the 280 Park Avenue mezzanine loan — — (31,215) — Other 2,104 (3,169) 5,000 (3,336) 5,560 2,840 (24,931) 4,696 Noncontrolling interests' share of above adjustments on a dilutive basis (433) (194) 1,981 (337)Total of certain expense (income) items that impact FFO attributable to common shareholders plus assumed conversions, net $5,127 $2,646 $(22,950) $4,359 Per diluted share (non-GAAP) $0.03 $0.01 $(0.11) $0.02 FFO attributable to common shareholders plus assumed conversions, as adjusted (non-GAAP) $122,212 $123,751 $447,071 $508,151 Per diluted share (non-GAAP) $0.61 $0.63 $2.26 $2.61 ________________________________ (1)See page 14 for a reconciliation of net income (loss) attributable to common shareholders to FFO attributable to common shareholders plus assumed conversions (non-GAAP) for the three months and years ended December 31, 2024 and 2023. FFO, as Adjusted Bridge – Q4 2024 vs. Q4 2023 The following table bridges our FFO attributable to common shareholders plus assumed conversions, as adjusted (non-GAAP) for the three months ended December 31, 2023 to FFO attributable to common shareholders plus assumed conversions, as adjusted (non-GAAP) for the three months ended December 31, 2024: (Amounts in millions, except per share amounts) FFO, as Adjusted Amount Per ShareFFO attributable to common shareholders plus assumed conversions, as adjusted (non-GAAP) for the three months ended December 31, 2023 $123.8 $0.63 Increase/(Decrease) in FFO, as adjusted due to: 330 West 34th Street termination and recapture fees, net of straight-line rent write-offs relating to new WeWork lease 15.1 Lease expirations, net of rent commencements, and other tenant related items (13.9) Change in interest expense, net of interest income (9.1) 2023 Development fee pool bonus expense 6.4 Variable businesses (primarily signage) 5.1 THE MART write-off of straight-line rent receivable (4.6) Other, net (0.6) (1.6) Noncontrolling interests' share of above items and impact of assumed conversions of convertible securities — Net decrease (1.6) (0.02) FFO attributable to common shareholders plus assumed conversions, as adjusted (non-GAAP) for the three months ended December 31, 2024 $122.2 $0.61 See page 14 for a reconciliation of net income (loss) attributable to common shareholders to FFO attributable to common shareholders plus assumed conversions (non-GAAP) for the three months and years ended December 31, 2024 and 2023. Reconciliations of FFO attributable to common shareholders plus assumed conversions to FFO attributable to common shareholders plus assumed conversions, as adjusted are provided on the previous page. Dispositions 666 Fifth Avenue (Fifth Avenue and Times Square JV) On January 8, 2025, the Fifth Avenue and Times Square JV completed the sale to UNIQLO of the portion of its U.S. flagship store at 666 Fifth Avenue for $350,000,000 and realized net proceeds of $342,000,000. The financial statement gain, which will be recognized in the first quarter of 2025, will be approximately $76,000,000. The net proceeds from the sale were used to partially redeem Vornado’s preferred equity on the asset. 220 Central Park South During the year ended December 31, 2024, we closed on the sale of two condominium units at 220 CPS for net proceeds of $31,605,000, resulting in a financial statement net gain of $15,175,000 which is included in "net gains on disposition of wholly owned and partially owned assets" on our consolidated statements of income. In connection with these sales, $2,106,000 of income tax expense was recognized on our consolidated statements of income. On January 17, 2025, we closed on the sale of a condominium unit at 220 CPS for net proceeds of $11,695,000; three units remain unsold. 50-70 West 93rd Street On May 13, 2024, we sold our 49.9% interest in 50-70 West 93rd Street to our joint venture partner. We received net proceeds of $2,000,000 after deducting our share of the existing $83,500,000 mortgage loan, which was scheduled to mature in December 2024, resulting in a net gain of $873,000. The net gain is included in "net gains on disposition of wholly owned and partially owned assets" on our consolidated statements of income. Acquisitions Investment in Loan On August 6, 2024, we purchased a $50,000,000 B-Note secured by a Midtown Manhattan property at par. The B-Note, together with the $35,000,000 A-Note, is in default. The B-Note accrues interest at 5.25% plus 4.00% default interest. The $50,000,000 B-Note investment was recorded to “other assets” on our consolidated balance sheets. Financing Activity Senior Unsecured Notes due 2025 We repaid our $450,000,000 3.50% senior unsecured notes on their January 15, 2025 maturity date. Alexander's, Inc. ("Alexander's") On September 30, 2024, Alexander’s, in which we own a 32.4% common equity interest, completed a $400,000,000 refinancing of the office condominium portion of 731 Lexington Avenue, the Bloomberg LP headquarters building. The interest-only loan carries a fixed rate of 5.04% and matures in October 2028. The loan is prepayable, at Alexander’s option, with no penalty, beginning in October 2026. The loan replaces the previous $490,000,000 loan on the office condominium, that bore interest at the Prime Rate and was scheduled to mature in October 2024. 85 Tenth Avenue On September 24, 2024, a joint venture, in which we have a 49.9% interest, modified the terms of the $625,000,000 mortgage loan on 85 Tenth Avenue. Per the original loan agreement, the mortgage loan is comprised of a (i) $396,000,000 3.82% senior note, (ii) $129,000,000 5.20% mezzanine A note and (iii) $100,000,000 6.60% mezzanine B note. The modification provides for the interest payments due under the mezzanine notes to be deferred until the December 2026 loan maturity. The deferred amounts will not accrue additional interest. The cash available from the deferred interest payments will be used to fund leasing costs at the property. At loan maturity, if there is no event of default, repayment of 50% of the accrued mezzanine interest will be waived. 606 Broadway On September 5, 2024, the $74,119,000 non-recourse mortgage loan on 606 Broadway, in which we hold a 50% interest, matured and was not repaid, at which time the lender declared an event of default. As of December 31, 2024, the property has a carrying value of $53,886,000, which is after an impairment charge recorded in the fourth quarter of 2023. We consolidate the joint venture. The loan currently bears interest at a floating rate of SOFR plus 1.91% (6.39% as of December 31, 2024) and provides for additional default interest of 3.00%. 640 Fifth Avenue (Fifth Avenue and Times Square JV) On June 10, 2024, the Fifth Avenue and Times Square JV completed a $400,000,000 refinancing of 640 Fifth Avenue. The non-recourse loan matures in July 2029, bears interest at a fixed rate of 7.47% and amortizes at $7,000,000 per annum. The loan replaces the previous $500,000,000 loan, which the joint venture paid down by $100,000,000. The previous loan was fully recourse to the Operating Partnership and bore interest at SOFR plus 1.11%. Financing Activity – continued Unsecured Revolving Credit Facility On May 3, 2024, we extended one of our two unsecured revolving credit facilities to April 2029 (as fully extended). The new $915,000,000 facility replaced the $1.25 billion facility that was due to mature in April 2026. The new facility currently bears interest at a rate of SOFR plus 1.20% with a facility fee of 25 basis points. Our $1.25 billion revolving credit facility matures in December 2027 (as fully extended) and has an interest rate of SOFR plus 1.15% and a facility fee of 25 basis points. 435 Seventh Avenue On April 9, 2024, we completed a $75,000,000 refinancing of 435 Seventh Avenue, of which $37,500,000 is recourse to the Operating Partnership. The interest-only loan bears a rate of SOFR plus 2.10% and matures in April 2028. The interest rate on the loan was swapped to a fixed rate of 6.96% through April 2026. The loan replaces the previous $95,696,000 fully recourse loan, which bore interest at SOFR plus 1.41%. 280 Park Avenue On April 4, 2024, a joint venture, in which we have a 50% interest, amended and extended the $1,075,000,000 mortgage loan on 280 Park Avenue. The maturity date on the amended loan was extended to September 2026, with options to fully extend to September 2028, subject to certain conditions. The interest rate on the amended loan remains at SOFR plus 1.78%. On July 8, 2024, the joint venture swapped the interest rate to a fixed rate of 5.84% through September 2028. Additionally, on April 4, 2024, the joint venture amended and extended the $125,000,000 mezzanine loan and subsequently repaid the loan for $62,500,000. In connection with the repayment of the mezzanine loan, we recognized our $31,215,000 share of the debt extinguishment gain which is included in “income (loss) from partially owned entities” on our consolidated statements of income. Interest Rate Swap and Cap Arrangements We entered into the following interest rate swap and cap arrangements during the year ended December 31, 2024: (Amounts in thousands) Notional Amount (at share) All-In Swapped Rate Expiration Date Variable Rate SpreadInterest rate swaps: 280 Park Avenue (50.0% interest) $537,500 5.84% 09/28 S+178PENN 11(1) 250,000 6.21% 10/25 S+206435 Seventh Avenue 75,000 6.96% 04/26 S+210 Index Strike Rate Interest rate caps: 61 Ninth Avenue (45.1% interest) $75,543 4.39% 01/26 S+146Rego Park II (32.4% interest) 65,624 4.15% 12/25 S+145________________________________ (1)Together with the existing $250,000 swap arrangement on the $500,000 PENN 11 mortgage loan, the loan will bear interest at an all-in swapped rate of 6.28% through October 2025. Alexander’s On May 3, 2024, Alexander’s, in which we own a 32.4% common equity interest, and Bloomberg L.P. reached an agreement to extend the leases covering approximately 947,000 square feet at 731 Lexington Avenue that were scheduled to expire in February 2029 for a term of eleven years to February 2040. Leasing Activity The leasing activity and related statistics below are based on leases signed during the period and are not intended to coincide with the commencement of rental revenue in accordance with accounting principles generally accepted in the United States of America (“GAAP”). Second generation relet space represents square footage that has not been vacant for more than nine months and tenant improvements and leasing commissions are based on our share of square feet leased during the period. (Square feet in thousands) New York 555 California Office Retail THE MART StreetThree Months Ended December 31, 2024 Total square feet leased 583 50 64 62 Our share of square feet leased: 513 32 64 43 Initial rent(1) $87.48 $315.10 $52.28 $133.87 Weighted average lease term (years) 5.0 11.3 6.8 3.7 Second generation relet space: Square feet 400 21 40 39 GAAP basis: Straight-line rent(2) $93.44 $399.79 $51.91 $131.44 Prior straight-line rent $75.42 $219.39 $51.15 $106.87 Percentage increase 23.9% 82.2% 1.5% 23.0%Cash basis (non-GAAP): Initial rent(1) $85.67 $350.12 $53.90 $131.24 Prior escalated rent $80.82 $234.14 $57.55 $127.86 Percentage increase (decrease) 6.0% 49.5% (6.3)% 2.6%Tenant improvements and leasing commissions: Per square foot $63.81 $174.01 $76.81 $69.00 Per square foot per annum $12.76 $15.40 $11.30 $18.65 Percentage of initial rent 14.6% 4.9% 21.6% 13.9%________________________________See notes below. (Square feet in thousands) New York 555 California Office Retail THE MART StreetYear Ended December 31, 2024 Total square feet leased 2,650 187 386 215 Our share of square feet leased: 1,653 161 386 152 Initial rent(1) $104.49 $160.01 $52.88 $102.80 Weighted average lease term (years) 8.4 9.4 7.5 7.6 Second generation relet space: Square feet 1,218 52 247 148 GAAP basis: Straight-line rent(2) $103.06 $312.43 $54.38 $103.05 Prior straight-line rent $92.97 $227.98 $51.57 $88.21 Percentage increase 10.9% 37.0% 5.4% 16.8%Cash basis (non-GAAP): Initial rent(1) $107.99 $294.38 $55.76 $101.31 Prior escalated rent $105.37 $271.77 $57.37 $101.45 Percentage increase (decrease) 2.5% 8.3% (2.8)% (0.1)%Tenant improvements and leasing commissions: Per square foot $81.56 $82.50 $91.00 $110.36 Per square foot per annum $9.71 $8.78 $12.13 $14.52 Percentage of initial rent 9.3% 5.5% 22.9% 14.1%_______________________________ (1)Represents the cash basis weighted average starting rent per square foot, which is generally indicative of market rents. Most leases include free rent and periodic step-ups in rent which are not included in the initial cash basis rent per square foot but are included in the GAAP basis straight-line rent per square foot.(2)Represents the GAAP basis weighted average rent per square foot that is recognized over the term of the respective leases and includes the effect of free rent and periodic step-ups in rent. Occupancy (At Vornado's share) New York 555 California Total Office Retail THE MART StreetOccupancy as of December 31, 2024 87.6% 88.8% 73.7% 80.1% 92.0% Same Store Net Operating Income ("NOI") (non-GAAP) At Share: Total New York THE MART(2) 555 California Street(3)Same store NOI at share % (decrease) increase(1): Three months ended December 31, 2024 compared to December 31, 2023 (4.5)% (0.7)% (57.5)% (13.2)%Year ended December 31, 2024 compared to December 31, 2023 (6.8)% (4.7)% (17.8)% (21.9)%Three months ended December 31, 2024 compared to September 30, 2024 4.0% 8.7% (58.8)% (0.3)% Same store NOI at share – cash basis % (decrease) increase(1): Three months ended December 31, 2024 compared to December 31, 2023 (3.8)% (2.2)% (32.0)% (1.5)%Year ended December 31, 2024 compared to December 31, 2023 (4.5)% (3.3)% (10.6)% (13.2)%Three months ended December 31, 2024 compared to September 30, 2024 0.0% 2.7% (29.2)% (8.1)%____________________ (1)See pages 16 through 22 for same store NOI at share and same store NOI at share – cash basis reconciliations.(2)2024 includes a $4,560,000 write-off of a receivable arising from the straight-lining of rents due to the tenant being deemed uncollectible.(3)The year ended December 31, 2023 includes our $14,103,000 share of the receipt of a tenant settlement, net of legal expenses. NOI At Share and NOI At Share – Cash Basis: The elements of our New York and Other NOI at share and NOI at share – cash basis for the three months and years ended December 31, 2024 and 2023 and the three months ended September 30, 2024 are summarized below. (Amounts in thousands) For the Three Months Ended For the Year Ended December 31, September 30, December 31, 2024 2023 2024 2024 2023 NOI at share: New York: Office(1) $193,215 $182,769 $167,051 $706,592 $727,000 Retail 48,238 47,378 47,283 191,379 188,561 Residential 6,072 5,415 5,784 24,044 21,910 Alexander's 9,515 12,013 9,470 39,895 40,098 Total New York 257,040 247,575 229,588 961,910 977,569 Other: THE MART(2) 6,168 14,516 14,972 51,686 61,519 555 California Street(3) 15,854 18,125 15,780 64,963 82,965 Other investments 5,904 6,880 5,151 21,193 21,160 Total Other 27,926 39,521 35,903 137,842 165,644 NOI at share $284,966 $287,096 $265,491 $1,099,752 $1,143,213 NOI at share – cash basis: New York: Office(1) $181,438 $183,742 $173,415 $698,138 $726,914 Retail 44,130 46,491 44,095 176,798 180,932 Residential 5,750 5,137 5,527 22,914 20,588 Alexander's 10,615 11,059 10,424 46,172 41,435 Total New York 241,933 246,429 233,461 944,022 969,869 Other: THE MART 10,550 15,511 14,901 57,235 62,579 555 California Street(3) 18,138 18,265 19,589 74,621 85,819 Other investments 5,967 7,012 4,347 20,211 21,569 Total Other 34,655 40,788 38,837 152,067 169,967 NOI at share – cash basis $276,588 $287,217 $272,298 $1,096,089 $1,139,836 ________________________________ (1)Includes Building Maintenance Services NOI of $6,895, $6,424, $8,280, $30,318 and $27,262 for the three months ended December 31, 2024 and 2023 and September 30, 2024 and the years ended December 31, 2024 and 2023, respectively.(2)2024 includes a $4,560 write-off of a receivable arising from the straight-lining of rents due to the tenant being deemed uncollectible.(3)The year ended December 31, 2023 includes our $14,103 share of the receipt of a tenant settlement, net of legal expenses. Active Development/Redevelopment Summary as of December 31, 2024: (Amounts in thousands, except square feet) (at Vornado’s share) New York segment: Property Rentable Sq. Ft. Budget Cash Amount Expended Remaining Expenditures Stabilization Year Projected Incremental Cash YieldPENN District: PENN 2 1,795,000 $750,000 $697,451 $52,549 2026 10.2%Districtwide Improvements N/A 100,000 70,919 29,081 N/A N/ATotal PENN District 850,000(1) 768,370 81,630 Sunset Pier 94 Studios (49.9% interest) 266,000 125,000(2) 52,093 72,907 2026 10.3% Total Active Development Projects $975,000 $820,463 $154,537 ________________________________ (1)Excluding debt and equity carry.(2)Represents our 49.9% share of the $350,000 development budget, excluding the $40,000 value of our contributed leasehold interest and net of an estimated $9,000 for our share of development fees and reimbursement for overhead costs incurred by us. As of December 31, 2024, we have fully funded our $34,000 share of cash contributions. There can be no assurance that the above projects will be completed, completed on schedule or within budget. In addition, there can be no assurance that the Company will be successful in leasing the properties on the expected schedule or at the assumed rental rates. Conference Call and Audio Webcast As previously announced, the Company will host a quarterly earnings conference call and an audio webcast on Tuesday, February 11, 2025 at 10:00 a.m. Eastern Time (ET). The conference call can be accessed by dialing 888-317-6003 (domestic) or 412-317-6061 (international) and entering the passcode 0916117. A live webcast of the conference call will be available on Vornado’s website at www.vno.com in the Investor Relations section and an online playback of the webcast will be available on the website following the conference call. Contact Thomas J. Sanelli(212) 894-7000 Supplemental Data 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. Forward-looking statements are not guarantees of future performance. They represent our intentions, plans, expectations and beliefs and are subject to numerous assumptions, risks and uncertainties. Our future results, financial condition and business may differ materially from those expressed in these forward-looking statements. You can find many of these statements by looking for words such as "approximates," "believes," "expects," "anticipates," "estimates," "intends," "plans," "would," "may" or other similar expressions in this press release. We also note the following forward-looking statements: in the case of our development and redevelopment projects, the estimated completion date, estimated project cost, projected incremental cash yield, stabilization date and cost to complete; estimates of future capital expenditures, dividends to common and preferred shareholders and operating partnership distributions. 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, 2024. Currently, some of the factors are the interest rate fluctuations and effects of inflation on our business, financial condition, results of operations, cash flows, operating performance and the effect that these factors have had and may continue to have on our tenants, the global, national, regional and local economies and financial markets and the real estate market in general. VORNADO REALTY TRUSTCONSOLIDATED BALANCE SHEETS (Amounts in thousands) As of Increase December 31, 2024 December 31, 2023 (Decrease)ASSETS Real estate, at cost: Land $2,434,209 $2,436,221 $(2,012)Buildings and improvements 10,439,113 9,952,954 486,159 Development costs and construction in progress 1,097,395 1,281,076 (183,681)Leasehold improvements and equipment 120,915 130,953 (10,038)Total 14,091,632 13,801,204 290,428 Less accumulated depreciation and amortization (4,025,349) (3,752,827) (272,522)Real estate, net 10,066,283 10,048,377 17,906 Right-of-use assets 678,804 680,044 (1,240)Cash, cash equivalents, and restricted cash Cash and cash equivalents 733,947 997,002 (263,055)Restricted cash 215,672 264,582 (48,910)Total 949,619 1,261,584 (311,965)Tenant and other receivables 58,853 69,543 (10,690)Investments in partially owned entities 2,691,478 2,610,558 80,920 Receivable arising from the straight-lining of rents 707,020 701,666 5,354 Deferred leasing costs, net 354,882 355,010 (128)Identified intangible assets, net 118,215 127,082 (8,867)Other assets 373,454 333,801 39,653 Total assets $15,998,608 $16,187,665 $(189,057)LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND EQUITY Liabilities: Mortgages payable, net $5,676,014 $5,688,020 $(12,006)Senior unsecured notes, net 1,195,914 1,193,873 2,041 Unsecured term loan, net 795,948 794,559 1,389 Unsecured revolving credit facilities 575,000 575,000 — Lease liabilities 749,759 732,859 16,900 Accounts payable and accrued expenses 374,013 411,044 (37,031)Deferred revenue 28,424 32,199 (3,775)Deferred compensation plan 114,580 105,245 9,335 Other liabilities 317,087 311,132 5,955 Total liabilities 9,826,739 9,843,931 (17,192)Redeemable noncontrolling interests 834,658 638,448 196,210 Shareholders' equity 5,158,242 5,509,064 (350,822)Noncontrolling interests in consolidated subsidiaries 178,969 196,222 (17,253)Total liabilities, redeemable noncontrolling interests and equity $15,998,608 $16,187,665 $(189,057) VORNADO REALTY TRUSTOPERATING RESULTS (Amounts in thousands, except per share amounts) For the Three Months Ended December 31, For the Year Ended December 31, 2024 2023 2024 2023 Revenues $457,790 $441,886 $1,787,686 $1,811,163 Net income (loss) $5,758 $(100,613) $20,116 $32,888 Less net loss (income) attributable to noncontrolling interests in: Consolidated subsidiaries 11,107 49,717 51,131 75,967 Operating Partnership (136) 5,412 (860) (3,361)Net income (loss) attributable to Vornado 16,729 (45,484) 70,387 105,494 Preferred share dividends (15,526) (15,529) (62,112) (62,116)Net income (loss) attributable to common shareholders $1,203 $(61,013) $8,275 $43,378 Income (loss) per common share - basic: Net income (loss) per common share $0.01 $(0.32) $0.04 $0.23 Weighted average shares outstanding 190,679 190,361 190,539 191,005 Income (loss) per common share - diluted: Net income (loss) per common share $0.01 $(0.32) $0.04 $0.23 Weighted average shares outstanding 200,084 190,361 196,626 191,856 FFO attributable to common shareholders plus assumed conversions (non-GAAP) $117,085 $121,105 $470,021 $503,792 Per diluted share (non-GAAP) $0.58 $0.62 $2.37 $2.59 FFO attributable to common shareholders plus assumed conversions, as adjusted (non-GAAP) $122,212 $123,751 $447,071 $508,151 Per diluted share (non-GAAP) $0.61 $0.63 $2.26 $2.61 Weighted average shares used in determining FFO attributable to common shareholders plus assumed conversions per diluted share 201,210 195,291 198,182 194,324 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 certain real estate assets, impairment write-downs of certain real estate assets and investments in entities when the impairment is directly attributable to decreases in the value of depreciable real estate held by the entity, depreciation and amortization expense from real estate assets and other specified 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. In addition to FFO attributable to common shareholders plus assumed conversions, we also disclose FFO attributable to common shareholders plus assumed conversions, 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 net income (loss) attributable to common shareholders to FFO attributable to common shareholders plus assumed conversions are provided on the following page. Reconciliations of FFO attributable to common shareholders plus assumed conversions to FFO attributable to common shareholders plus assumed conversions, as adjusted are provided on page 2 of this press release. VORNADO REALTY TRUSTNON-GAAP RECONCILIATIONS The following table reconciles net income (loss) attributable to common shareholders to FFO attributable to common shareholders plus assumed conversions: (Amounts in thousands, except per share amounts) For the Three Months Ended December 31, For the Year Ended December 31, 2024 2023 2024 2023 Net income (loss) attributable to common shareholders $1,203 $(61,013) $8,275 $43,378 Per diluted share $0.01 $(0.32) $0.04 $0.23 FFO adjustments: Depreciation and amortization of real property $101,824 $98,085 $399,694 $385,608 Real estate impairment losses — 22,206 — 22,831 Net gains on sale of real estate — — (873) (53,305)Our share of partially owned entities: Depreciation and amortization of real property 23,483 27,188 101,195 108,088 Net gain on sale of real estate — — — (16,545)Real estate impairment losses — 50,458 — 50,458 FFO adjustments, net 125,307 197,937 500,016 497,135 Impact of assumed conversion of dilutive convertible securities 358 388 1,549 1,642 Noncontrolling interests' share of above adjustments on a dilutive basis (9,783) (16,207) (39,819) (38,363)FFO attributable to common shareholders plus assumed conversions $117,085 $121,105 $470,021 $503,792 Per diluted share $0.58 $0.62 $2.37 $2.59 Reconciliation of weighted average shares outstanding: Weighted average common shares outstanding 190,679 190,361 190,539 191,005 Effect of dilutive securities: Share-based payment awards 9,405 2,857 6,087 851 Convertible securities 1,126 2,073 1,556 2,468 Denominator for FFO per diluted share 201,210 195,291 198,182 194,324 VORNADO REALTY TRUSTNON-GAAP RECONCILIATIONS – CONTINUED Below is a reconciliation of net income (loss) to NOI at share and NOI at share – cash basis for the three months and years ended December 31, 2024 and 2023 and the three months ended September 30, 2024. (Amounts in thousands) For the Three Months Ended For the Year Ended December 31, September 30, December 31, 2024 2023 2024 2024 2023 Net income (loss) $5,758 $(100,613) $(19,468) $20,116 $32,888 Depreciation and amortization expense 113,061 110,197 116,006 447,500 434,273 General and administrative expense 36,637 46,040 35,511 148,520 162,883 Transaction related costs, impairment losses and other 1,341 49,190 (113) 5,242 50,691 (Income) loss from partially owned entities (30,007) 33,518 (18,229) (112,464) (38,689)Interest and other investment income, net (11,348) (5,833) (12,391) (45,974) (43,287)Interest and debt expense 100,483 87,695 100,907 390,269 349,223 Net gains on disposition of wholly owned and partially owned assets — (6,607) — (16,048) (71,199)Income tax expense 5,822 8,374 4,883 22,729 29,222 NOI from partially owned entities 73,270 74,819 67,292 279,229 285,761 NOI attributable to noncontrolling interests in consolidated subsidiaries (10,051) (9,684) (8,907) (39,367) (48,553)NOI at share 284,966 287,096 265,491 1,099,752 1,143,213 Non-cash adjustments for straight-line rents, amortization of acquired below-market leases, net, and other (8,378) 121 6,807 (3,663) (3,377)NOI at share – cash basis $276,588 $287,217 $272,298 $1,096,089 $1,139,836 NOI at share represents total revenues less operating expenses including our share of partially owned entities. NOI at share – cash basis represents NOI at share adjusted to exclude straight-line rental income and expense, amortization of acquired below and above market leases, accruals for ground rent resets yet to be determined, and other non-cash adjustments. We consider NOI at share to be the primary non-GAAP financial measure for making decisions and assessing the unlevered performance of our segments as it relates to the total return on assets as opposed to the levered return on equity. As properties are bought and sold based on NOI at share – cash basis, we utilize this measure to make investment decisions as well as to compare the performance of our assets to that of our peers. NOI at share and NOI at share – cash basis should not be considered alternatives to net income or cash flow from operations and may not be comparable to similarly titled measures employed by other companies. VORNADO REALTY TRUSTNON-GAAP RECONCILIATIONS – CONTINUED Same store NOI at share represents NOI at share from operations which are in service in both the current and prior year reporting periods. Same store NOI at share – cash basis is same store NOI at share adjusted to exclude straight-line rental income and expense, amortization of acquired below and above market leases, accruals for ground rent resets yet to be determined, and other non-cash adjustments. We use these non-GAAP measures to (i) facilitate meaningful comparisons of the operational performance of our properties and segments, (ii) make decisions on whether to buy, sell or refinance properties, and (iii) compare the performance of our properties and segments to those of our peers. Same store NOI at share and same store NOI at share – cash basis should not be considered alternatives to net income or cash flow from operations and may not be comparable to similarly titled measures employed by other companies. Below are reconciliations of NOI at share to same store NOI at share for our New York segment, THE MART, 555 California Street and other investments for the three months ended December 31, 2024 compared to December 31, 2023. (Amounts in thousands) Total New York THE MART 555 California Street OtherNOI at share for the three months ended December 31, 2024 $284,966 $257,040 $6,168 $15,854 $5,904 Less NOI at share from: Dispositions (55) (55) — — — Development properties (5,627) (5,627) — — — Other non-same store income, net (16,576) (10,546) — (126) (5,904)Same store NOI at share for the three months ended December 31, 2024 $262,708 $240,812 $6,168 $15,728 $— NOI at share for the three months ended December 31, 2023 $287,096 $247,575 $14,516 $18,125 $6,880 Less NOI at share from: Dispositions (532) (542) 10 — — Development properties (2,684) (2,684) — — — Other non-same store income, net (8,669) (1,789) — — (6,880)Same store NOI at share for the three months ended December 31, 2023 $275,211 $242,560 $14,526 $18,125 $— Decrease in same store NOI at share $(12,503) $(1,748) $(8,358) $(2,397) $— % decrease in same store NOI at share (4.5)% (0.7)% (57.5)% (13.2)% 0.0% VORNADO REALTY TRUSTNON-GAAP RECONCILIATIONS – CONTINUED Below are reconciliations of NOI at share – cash basis to same store NOI at share – cash basis for our New York segment, THE MART, 555 California Street and other investments for the three months ended December 31, 2024 compared to December 31, 2023. (Amounts in thousands) Total New York THE MART 555 California Street OtherNOI at share – cash basis for the three months ended December 31, 2024 $276,588 $241,933 $10,550 $18,138 $5,967 Less NOI at share – cash basis from: Dispositions (55) (55) — — — Development properties (1,664) (1,664) — — — Other non-same store income, net (11,397) (5,287) — (143) (5,967)Same store NOI at share – cash basis for the three months ended December 31, 2024 $263,472 $234,927 $10,550 $17,995 $— NOI at share – cash basis for the three months ended December 31, 2023 $287,217 $246,429 $15,511 $18,265 $7,012 Less NOI at share – cash basis from: Dispositions (532) (542) 10 — — Development properties (2,518) (2,518) — — — Other non-same store income, net (10,149) (3,137) — — (7,012)Same store NOI at share – cash basis for the three months ended December 31, 2023 $274,018 $240,232 $15,521 $18,265 $— Decrease in same store NOI at share – cash basis $(10,546) $(5,305) $(4,971) $(270) $— % decrease in same store NOI at share – cash basis (3.8)% (2.2)% (32.0)% (1.5)% 0.0% VORNADO REALTY TRUSTNON-GAAP RECONCILIATIONS – CONTINUED Below are reconciliations of NOI at share to same store NOI at share for our New York segment, THE MART, 555 California Street and other investments for the year ended December 31, 2024 compared to December 31, 2023. (Amounts in thousands) Total New York THE MART 555 California Street OtherNOI at share for the year ended December 31, 2024 $1,099,752 $961,910 $51,686 $64,963 $21,193 Less NOI at share from: Dispositions (1,499) (1,509) 10 — — Development properties (35,182) (35,182) — — — Other non-same store income, net (34,735) (13,416) — (126) (21,193)Same store NOI at share for the year ended December 31, 2024 $1,028,336 $911,803 $51,696 $64,837 $— NOI at share for the year ended December 31, 2023 $1,143,213 $977,569 $61,519 $82,965 $21,160 Less NOI at share from: Dispositions (2,321) (3,677) 1,356 — — Development properties (16,310) (16,310) — — — Other non-same store income, net (21,589) (429) — — (21,160)Same store NOI at share for the year ended December 31, 2023 $1,102,993 $957,153 $62,875 $82,965 $— Decrease in same store NOI at share $(74,657) $(45,350) $(11,179) $(18,128) $— % decrease in same store NOI at share (6.8)% (4.7)% (17.8)% (21.9)% 0.0% VORNADO REALTY TRUSTNON-GAAP RECONCILIATIONS – CONTINUED Below are reconciliations of NOI at share – cash basis to same store NOI at share – cash basis for our New York segment, THE MART, 555 California Street and other investments for the year ended December 31, 2024 compared to December 31, 2023. (Amounts in thousands) Total New York THE MART 555 California Street OtherNOI at share – cash basis for the year ended December 31, 2024 $1,096,089 $944,022 $57,235 $74,621 $20,211 Less NOI at share – cash basis from: Dispositions (1,499) (1,509) 10 — — Development properties (21,561) (21,561) — — — Other non-same store income, net (31,681) (11,327) — (143) (20,211)Same store NOI at share – cash basis for the year ended December 31, 2024 $1,041,348 $909,625 $57,245 $74,478 $— NOI at share – cash basis for the year ended December 31, 2023 $1,139,836 $969,869 $62,579 $85,819 $21,569 Less NOI at share – cash basis from: Dispositions (2,664) (4,138) 1,474 — — Development properties (15,519) (15,519) — — — Other non-same store income, net (30,737) (9,168) — — (21,569)Same store NOI at share - cash basis for the year ended December 31, 2023 $1,090,916 $941,044 $64,053 $85,819 $— Decrease in same store NOI at share – cash basis $(49,568) $(31,419) $(6,808) $(11,341) $— % decrease in same store NOI at share – cash basis (4.5)% (3.3)% (10.6)% (13.2)% 0.0% VORNADO REALTY TRUSTNON-GAAP RECONCILIATIONS – CONTINUED Below are reconciliations of NOI at share to same store NOI at share for our New York segment, THE MART, 555 California Street and other investments for the three months ended December 31, 2024 compared to September 30, 2024. (Amounts in thousands) Total New York THE MART 555 California Street OtherNOI at share for the three months ended December 31, 2024 $284,966 $257,040 $6,168 $15,854 $5,904 Less NOI at share from: Dispositions (55) (55) — — — Development properties (12,427) (12,427) — — — Other non-same store income, net (15,497) (9,467) — (126) (5,904)Same store NOI at share for the three months ended December 31, 2024 $256,987 $235,091 $6,168 $15,728 $— NOI at share for the three months ended September 30, 2024 $265,491 $229,588 $14,972 $15,780 $5,151 Less NOI at share from: Dispositions (25) (29) 4 — — Development properties (11,959) (11,959) — — — Other non-same store income, net (6,437) (1,286) — — (5,151)Same store NOI at share for the three months ended September 30, 2024 $247,070 $216,314 $14,976 $15,780 $— Increase (decrease) in same store NOI at share $9,917 $18,777 $(8,808) $(52) $— % increase (decrease) in same store NOI at share 4.0% 8.7% (58.8)% (0.3)% 0.0% VORNADO REALTY TRUSTNON-GAAP RECONCILIATIONS – CONTINUED Below are reconciliations of NOI at share – cash basis to same store NOI at share – cash basis for our New York segment, THE MART, 555 California Street and other investments for the three months ended December 31, 2024 compared to September 30, 2024. (Amounts in thousands) Total New York THE MART 555 California Street OtherNOI at share – cash basis for the three months ended December 31, 2024 $276,588 $241,933 $10,550 $18,138 $5,967 Less NOI at share – cash basis from: Dispositions (55) (55) — — — Development properties (7,666) (7,666) — — — Other non-same store income, net (10,263) (4,153) — (143) (5,967)Same store NOI at share – cash basis for the three months ended December 31, 2024 $258,604 $230,059 $10,550 $17,995 $— NOI at share – cash basis for the three months ended September 30, 2024 $272,298 $233,461 $14,901 $19,589 $4,347 Less NOI at share – cash basis from: Dispositions (25) (29) 4 — — Development properties (6,574) (6,574) — — — Other non-same store income, net (7,160) (2,813) — — (4,347)Same store NOI at share – cash basis for the three months ended September 30, 2024 $258,539 $224,045 $14,905 $19,589 $— Increase (decrease) in same store NOI at share – cash basis $65 $6,014 $(4,355) $(1,594) $— % increase (decrease) in same store NOI at share – cash basis 0.0% 2.7% (29.2)% (8.1)% 0.0%

Vornado Announces Fourth Quarter 2024 Financial Results

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