• Vornado Announces First Quarter 2022 Financial Results

    ソース: Nasdaq GlobeNewswire / 02 5 2022 15:23:48   America/Chicago

    NEW YORK, May 02, 2022 (GLOBE NEWSWIRE) -- Vornado Realty Trust (NYSE: VNO) reported today:

    Quarter Ended March 31, 2022 Financial Results

    NET INCOME attributable to common shareholders for the quarter ended March 31, 2022 was $26,478,000, or $0.14 per diluted share, compared to $4,083,000, or $0.02 per diluted share, for the prior year's quarter. Adjusting for the items that impact period-to-period comparability listed in the table below, net income attributable to common shareholders, as adjusted (non-GAAP) for the quarter ended March 31, 2022 was $31,682,000, or $0.16 per diluted share, and $12,446,000, or $0.06 per diluted share for the quarter ended March 31, 2021.

    FUNDS FROM OPERATIONS ("FFO") attributable to common shareholders plus assumed conversions (non-GAAP) for the quarter ended March 31, 2022 was $154,908,000, or $0.80 per diluted share, compared to $118,407,000, 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 page 2, FFO attributable to common shareholders plus assumed conversions, as adjusted (non-GAAP) for the quarter ended March 31, 2022 was $152,313,000, or $0.79 per diluted share, and $124,359,000, or $0.65 per diluted share for the quarter ended March 31, 2021.

    The following table reconciles net income attributable to common shareholders to net income attributable to common shareholders, as adjusted (non-GAAP):

    (Amounts in thousands, except per share amounts)For the Three Months Ended
    March 31,
      2022   2021 
    Net income attributable to common shareholders$26,478  $4,083 
    Per diluted share$0.14  $0.02 
        
    Certain expense (income) items that impact net income attributable to common shareholders:   
    Hotel Pennsylvania loss$8,929  $8,990 
    After-tax net gain on sale of 220 Central Park South ("220 CPS") condominium units (5,412)  — 
    Deferred tax liability on our investment in Farley Office and Retail (held through a taxable REIT subsidiary) 3,173   — 
    Other (1,100)  (66)
      5,590   8,924 
    Noncontrolling interests' share of above adjustments (386)  (561)
    Total of certain expense (income) items that impact net income attributable to common shareholders$5,204  $8,363 
    Per diluted share (non-GAAP)$0.02  $0.04 
        
    Net income attributable to common shareholders, as adjusted (non-GAAP)$31,682  $12,446 
    Per diluted share (non-GAAP)$0.16  $0.06 

    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
    March 31,
      2022   2021 
    FFO attributable to common shareholders plus assumed conversions (non-GAAP)(1)$154,908  $118,407 
    Per diluted share (non-GAAP)$0.80  $0.62 
        
    Certain (income) expense items that impact FFO attributable to common shareholders plus assumed conversions:   
    After-tax net gain on sale of 220 CPS condominium units$(5,412) $— 
    Deferred tax liability on our investment in Farley Office and Retail (held through a taxable REIT subsidiary) 3,173   — 
    Other (549)  6,351 
      (2,788)  6,351 
    Noncontrolling interests' share of above adjustments 193   (399)
    Total of certain (income) expense items that impact FFO attributable to common shareholders plus assumed conversions, net$(2,595) $5,952 
    Per diluted share (non-GAAP)$(0.01) $0.03 
        
    FFO attributable to common shareholders plus assumed conversions, as adjusted (non-GAAP)$152,313  $124,359 
    Per diluted share (non-GAAP)$0.79  $0.65 

    ____________________________________________________________

    (1) See page 8 for a reconciliation of net income attributable to common shareholders to FFO attributable to common shareholders plus assumed conversions (non-GAAP) for the three months ended March 31, 2022 and 2021.

    FFO, as Adjusted Bridge - Q1 2022 vs. Q1 2021

    The following table bridges our FFO attributable to common shareholders plus assumed conversions, as adjusted (non-GAAP) for the three months ended March 31, 2021 to FFO attributable to common shareholders plus assumed conversions, as adjusted (non-GAAP) for the three months ended March 31, 2022:

    (Amounts in millions, except per share amounts)FFO, as Adjusted
     Amount Per Share
    FFO attributable to common shareholders plus assumed conversions, as adjusted (non-GAAP) for the three months ended March 31, 2021$124.4  $0.65
        
    Increase (decrease) in FFO, as adjusted due to:   
    Rent commencement and other tenant related items 14.8   
    Variable businesses (primarily signage and trade shows) 11.7   
    Acquisition of our partner's 45% ownership interest in One Park Avenue on August 5, 2021 4.6   
    General and administrative (primarily due to the overhead reduction program) 2.4   
    Other, net (3.2)  
      30.3   
    Noncontrolling interests' share of above items (2.4)  
    Net increase 27.9   0.14
        
    FFO attributable to common shareholders plus assumed conversions, as adjusted (non-GAAP) for the three months ended March 31, 2022$152.3  $0.79
           

    See page 8 for a reconciliation of net income attributable to common shareholders to FFO attributable to common shareholders plus assumed conversions (non-GAAP) for the three months ended March 31, 2022 and 2021. Reconciliations of FFO attributable to common shareholders plus assumed conversions to FFO attributable to common shareholders plus assumed conversions, as adjusted are provided above.

    Dispositions:

    220 CPS

    During the three months ended March 31, 2022, we closed on the sale of one condominium unit at 220 CPS for net proceeds of $15,095,000 resulting in a financial statement net gain of $6,001,000 which is included in "net gains on disposition of wholly owned and partially owned assets" on our consolidated statements of income. In connection with this sale, $589,000 of income tax expense was recognized on our consolidated statements of income. From inception to March 31, 2022, we have closed on the sale of 107 units for net proceeds of $3,021,991,000 resulting in financial statement net gains of $1,123,256,000.

    SoHo Properties

    On January 13, 2022, we sold two Manhattan retail properties located at 478-482 Broadway and 155 Spring Street for $84,500,000 and realized net proceeds of $81,399,000. In connection with the sale, we recognized a net gain of $551,000 which is included in "net gains on disposition of wholly owned and partially owned assets" on our consolidated statements of income.

    Center Building (33-00 Northern Boulevard)

    On April 27, 2022, we entered into an agreement to sell the Center Building, an eight-story 498,000 square foot office building located at 33‑00 Northern Boulevard in Long Island City, New York, for $172,750,000. We expect to close the sale in the third quarter of 2022 and recognize a financial statement gain of approximately $15,000,000 and a tax gain of approximately $74,000,000. The sale is subject to customary closing conditions.

    Leasing Activity For the Three Months Ended March 31, 2022:

    • 272,000 square feet of New York Office space (236,000 square feet at share) at an initial rent of $81.07 per square foot and a weighted average lease term of 8.8 years. The changes in the GAAP and cash mark-to-market rent on the 152,000 square feet of second generation space were positive 6.5% and positive 7.2%, respectively. Tenant improvements and leasing commissions were $12.88 per square foot per annum, or 15.9% of initial rent.
    • 20,000 square feet of New York Retail space (all at share) at an initial rent of $171.62 per square foot and a weighted average lease term of 14.1 years. The 20,000 square feet was first generation space. Tenant improvements and leasing commissions were $14.01 per square foot per annum, or 8.2% of initial rent.
    • 149,000 square feet at theMART (all at share) at an initial rent of $49.79 per square foot and a weighted average lease term of 8.2 years. The changes in the GAAP and cash mark-to-market rent on the 133,000 square feet of second generation space were negative 7.4% and negative 4.5%, respectively. Tenant improvements and leasing commissions were $12.00 per square foot per annum, or 24.1% of initial rent.
    • 56,000 square feet at 555 California (39,000 square feet at share) at an initial rent of $91.49 per square foot and a weighted average lease term of 6.8 years. The changes in the GAAP and cash mark-to-market rent on the 34,000 square feet of second generation space were positive 56.4% and positive 19.8%, respectively. Tenant improvements and leasing commissions were $12.50 per square foot per annum, or 13.7% of initial rent.

    Same Store Net Operating Income ("NOI") At Share:

    Below is the percentage increase (decrease) in same store NOI at share and same store NOI at share - cash basis of our New York segment, theMART and 555 California Street.

     Total New York theMART 555 California Street
    Same store NOI at share % increase (decrease)(1):       
    Three months ended March 31, 2022 compared to March 31, 20213.1% 2.5% 10.0% 3.2%
    Three months ended March 31, 2022 compared to December 31, 2021(1.5)% (3.2)% 24.8% (2.2)%
                
    Same store NOI at share - cash basis % increase (decrease)(1):           
    Three months ended March 31, 2022 compared to March 31, 20215.8% 5.0% 14.6% 5.3%
    Three months ended March 31, 2022 compared to December 31, 2021(1.4)% (3.0)% 11.0% 8.1%

    ____________________

    (1)   See pages 10 through 13 for same store NOI at share and same store NOI at share - cash basis reconciliations.

    NOI At Share:

    The elements of our New York and Other NOI at share for the three months ended March 31, 2022 and 2021 and the three months ended December 31, 2021 are summarized below.

    (Amounts in thousands)For the Three Months Ended
     March 31, December 31,
      2022  2021  2021
    NOI at share:     
    New York:     
    Office(1)$177,809 $166,635  $179,929
    Retail 52,105  36,702   48,365
    Residential 4,774  4,456   4,894
    Alexander's 8,979  10,489   8,751
    Hotel Pennsylvania(2) —  (7,144)  —
    Total New York 243,667  211,138   241,939
    Other:     
    theMART 19,914  18,107   15,959
    555 California Street 16,235  16,064   16,596
    Other investments 4,442  4,799   3,928
    Total Other 40,591  38,970   36,483
          
    NOI at share$284,258 $250,108  $278,422
              

    _______________________
    See notes below.

    NOI At Share - Cash Basis:
    The elements of our New York and Other NOI at share - cash basis for the three months ended March 31, 2022 and 2021 and the three months ended December 31, 2021 are summarized below.

    (Amounts in thousands)For the Three Months Ended
     March 31, December 31, 
      2022  2021  2021
    NOI at share - cash basis:     
    New York:     
    Office(1)$177,827 $167,096  $181,568
    Retail 47,393  34,876   44,536
    Residential 4,689  4,011   4,758
    Alexander's 9,783  11,349   9,538
    Hotel Pennsylvania(2) —  (7,167)  —
    Total New York 239,692  210,165   240,400
    Other:     
    theMART 20,436  17,840   18,413
    555 California Street 16,360  15,855   15,128
    Other investments 4,640  5,050   4,229
    Total Other 41,436  38,745   37,770
          
    NOI at share - cash basis$281,128 $248,910  $278,170
              

    ______________________

    (1)   Includes Building Management Services ("BMS") NOI of $5,782, $6,350 and $6,918, respectively, for three months ended March 31, 2022 and 2021 and December 31, 2021.

    (2)   On April 5, 2021, we permanently closed the Hotel Pennsylvania. Beginning in the third quarter of 2021, we commenced capitalization of carrying costs in connection with our development of the future PENN 15 (formerly Hotel Pennsylvania) site.

    PENN District - Active Development/Redevelopment Summary as of March 31, 2022

    (Amounts in thousands of dollars, except square feet)    
    Active PENN District Projects Segment Property
    Rentable
    Sq. Ft.    		 Budget(1) Cash Amount
    Expended    		 Remaining
    Expenditures    		 Stabilization
    Year    		 Projected
    Incremental Cash
    Yield
    Farley (95% interest) New York 845,000 1,120,000(2)981,993(2)138,007 2022  6.4% 
    PENN 2 - as expanded New York 1,795,000 750,000 208,231 541,769 2025  9.0% 
    PENN 1 (including LIRR Concourse Retail)(3) New York 2,547,000 450,000 319,622 130,378 N/A  12.2%(3)(4)
    Districtwide Improvements New York N/A 100,000 32,306 67,694 N/A  N/A 
    Total Active PENN District Projects     2,420,000 1,542,152 877,848    8.0% 

    ________________________________

    (1) Excluding debt and equity carry.
    (2) Net of 154,000 of historic tax credit investor contributions, of which 88,000 has been funded to date (at our 95% share).
    (3) Property is ground leased through 2098, as fully extended. Fair market value resets occur in 2023, 2048 and 2073. The 12.2% projected return is before the ground rent reset in 2023, which may be material.
    (4) Projected to be achieved as pre-redevelopment leases roll; approximate average remaining lease term 4.0 years.

    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, May 3, 2022 at 10:00 a.m. Eastern Time (ET). The conference call can be accessed by dialing 866-374-5140 (domestic) or 404-400-0571 (international) and entering the passcode 45364290. 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 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. Forward-looking statements are not guarantees of 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; and 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, 2021. Currently, one of the most significant factors is the ongoing adverse effect of the COVID-19 pandemic on our business, financial condition, results of operations, cash flows, operating performance and the effect it has 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. The extent of the impact of the COVID-19 pandemic will continue to depend on future developments, including vaccination rates among the population, the efficacy and durability of vaccines against emerging variants, and governmental and tenant responses thereto, which continue to be uncertain but the impact could be material. Moreover, you are cautioned that the COVID-19 pandemic will heighten many of the risks identified in "Item 1A. Risk Factors" in Part I of our Annual Report on Form 10-K for the year ended December 31, 2021.

    VORNADO REALTY TRUST
    CONSOLIDATED BALANCE SHEETS

    (Amounts in thousands)As of Increase
    		 
     March 31, 2022 December 31, 2021 (Decrease) 
    ASSETS      
    Real estate, at cost:      
    Land$2,540,193  $2,540,193  $—  
    Buildings and improvements 9,956,681   9,839,166   117,515  
    Development costs and construction in progress 751,555   718,694   32,861  
    Leasehold improvements and equipment 120,979   119,792   1,187  
    Total 13,369,408   13,217,845   151,563  
    Less accumulated depreciation and amortization (3,455,145)  (3,376,347)  (78,798) 
    Real estate, net 9,914,263   9,841,498   72,765  
    Right-of-use assets 687,642   337,197   350,445 (1)
    Cash, cash equivalents, restricted cash and investments in U.S. Treasury bills:      
    Cash and cash equivalents 973,858   1,760,225   (786,367) 
    Restricted cash 167,397   170,126   (2,729) 
    Investments in U.S. Treasury bills 645,360   —   645,360  
    Total 1,786,615   1,930,351   (143,736) 
    Tenant and other receivables 83,126   79,661   3,465  
    Investments in partially owned entities 3,299,629   3,297,389   2,240  
    Real estate fund investments 13,402   7,730   5,672  
    220 CPS condominium units ready for sale 51,072   57,142   (6,070) 
    Receivable arising from the straight-lining of rents 677,627   656,318   21,309  
    Deferred leasing costs, net 388,724   391,693   (2,969) 
    Identified intangible assets, net 149,613   154,895   (5,282) 
    Other assets 440,648   512,714   (72,066) 
    Total assets$17,492,361  $17,266,588  $225,773  
    LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND EQUITY      
    Liabilities:      
    Mortgages payable, net$6,050,693  $6,053,343  $(2,650) 
    Senior unsecured notes, net 1,190,301   1,189,792   509  
    Unsecured term loan, net 798,075   797,812   263  
    Unsecured revolving credit facilities 575,000   575,000   —  
    Lease liabilities 723,432   370,206   353,226 (1)
    Accounts payable and accrued expenses 541,825   613,497   (71,672) 
    Deferred revenue 46,238   48,118   (1,880) 
    Deferred compensation plan 107,170   110,174   (3,004) 
    Other liabilities 274,496   304,725   (30,229) 
    Total liabilities 10,307,230   10,062,667   244,563  
    Redeemable noncontrolling interests 747,161   688,683   58,478  
    Shareholders' equity 6,184,858   6,236,346   (51,488) 
    Noncontrolling interests in consolidated subsidiaries 253,112   278,892   (25,780) 
    Total liabilities, redeemable noncontrolling interests and equity$17,492,361  $17,266,588  $225,773  

    ____________________________________________________________

    (1) In January 2022, we exercised a 25-year renewal option on our PENN 1 ground lease extending the term through June 2073. As a result of the exercise, we remeasured the related ground lease liability to include our 25-year extension option and recorded an estimated incremental right-of-use asset and lease liability of approximately $350,000.

    VORNADO REALTY TRUST
    OPERATING RESULTS

    (Amounts in thousands, except per share amounts)For the Three Months Ended
    March 31,
      2022   2021 
    Revenues$442,130  $379,977 
        
    Net income$53,375  $26,993 
    Less net income attributable to noncontrolling interests in:   
    Consolidated subsidiaries (9,374)  (6,114)
    Operating Partnership (1,994)  (329)
    Net income attributable to Vornado 42,007   20,550 
    Preferred share dividends (15,529)  (16,467)
    Net income attributable to common shareholders$26,478  $4,083 
        
    Income per common share - basic:   
    Net income per common share$0.14  $0.02 
    Weighted average shares outstanding 191,724   191,418 
        
    Income per common share - diluted:   
    Net income per common share$0.14  $0.02 
    Weighted average shares outstanding 192,038   192,031 
        
    FFO attributable to common shareholders plus assumed conversions (non-GAAP)$154,908  $118,407 
    Per diluted share (non-GAAP)$0.80  $0.62 
        
    FFO attributable to common shareholders plus assumed conversions, as adjusted (non-GAAP)$152,313  $124,359 
    Per diluted share (non-GAAP)$0.79  $0.65 
        
    Weighted average shares used in determining FFO attributable to common shareholders plus assumed conversions per diluted share 193,174   192,057 
            

    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, real estate impairment losses, 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 they exclude 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. The Company also uses FFO attributable to common shareholders plus assumed conversions, as adjusted for certain items that impact the comparability of period to period FFO, as one of several criteria to determine performance-based compensation for members of its senior management. 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 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 TRUST
    NON-GAAP RECONCILIATIONS

    The following table reconciles net income 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
    March 31,
      2022   2021 
    Net income attributable to common shareholders$26,478  $4,083 
    Per diluted share$0.14  $0.02 
        
    FFO adjustments:   
    Depreciation and amortization of real property$105,962  $87,719 
    Net gain on sale of real estate (551)  — 
    Proportionate share of adjustments to equity in net income of partially owned entities to arrive at FFO:   
    Depreciation and amortization of real property 32,139   34,858 
    Increase in fair value of marketable securities —   (189)
      137,550   122,388 
    Noncontrolling interests' share of above adjustments (9,506)  (8,075)
    FFO adjustments, net$128,044  $114,313 
        
    FFO attributable to common shareholders$154,522  $118,396 
    Impact of assumed conversion of dilutive convertible securities 386   11 
    FFO attributable to common shareholders plus assumed conversions$154,908  $118,407 
    Per diluted share$0.80  $0.62 
        
    Reconciliation of weighted average shares outstanding:   
    Weighted average common shares outstanding 191,724   191,418 
    Effect of dilutive securities:   
    Convertible securities 1,136 (1) 26 
    Share-based payment awards 314   613 
    Denominator for FFO per diluted share 193,174   192,057 
            

    ______________________
    (1) On January 1, 2022, we adopted Accounting Standards Update 2020-06, which requires us to include our Series D-13 cumulative redeemable preferred units and Series G-1 through G-4 convertible preferred units in our dilutive earnings per share calculations, if the effect is dilutive.

    VORNADO REALTY TRUST
    NON-GAAP RECONCILIATIONS - CONTINUED

    Below is a reconciliation of net income to NOI at share and NOI at share - cash basis for the three months ended March 31, 2022 and 2021 and the three months ended December 31, 2021.

     For the Three Months Ended
    (Amounts in thousands)March 31, December 31, 
      2022   2021  2021
    Net income$53,375  $26,993  $31,963 
    Depreciation and amortization expense 117,443   95,354   126,349 
    General and administrative expense 41,216   44,186   34,204 
    Transaction related costs and other 1,005   843   3,185 
    Income from partially owned entities (33,714)  (29,073)  (43,749)
    (Income) loss from real estate fund investments (5,674)  169   (5,959)
    Interest and other investment income, net (1,018)  (1,522)  (918)
    Interest and debt expense 52,109   50,064   78,192 
    Net gains on disposition of wholly owned and partially owned assets (6,552)  —   (14,959)
    Income tax expense 7,411   1,984   10,055 
    NOI from partially owned entities 78,692   78,756   79,223 
    NOI attributable to noncontrolling interests in consolidated subsidiaries (20,035)  (17,646)  (19,164)
    NOI at share 284,258   250,108   278,422 
    Non-cash adjustments for straight-line rents, amortization of acquired below-market leases, net and other (3,130)  (1,198)  (252)
    NOI at share - cash basis$281,128  $248,910  $278,170 
                

    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, net and other non-cash adjustments. We consider NOI at share - cash basis 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 TRUST
    NON-GAAP RECONCILIATIONS - CONTINUED

    Below are reconciliations of NOI at share to same store NOI at share for our New York segment, theMART, 555 California Street and other investments for the three months ended March 31, 2022 compared to March 31, 2021.

    (Amounts in thousands)Total New York theMART 555
    California
    Street    		 Other
    NOI at share for the three months ended March 31, 2022$284,258  $243,667  $19,914  $16,235  $4,442 
    Less NOI at share from:         
    Change in ownership interest in One Park Avenue (5,956)  (5,956)  —   —   — 
    Dispositions 78   78   —   —   — 
    Development properties (20,860)  (20,860)  —   —   — 
    Other non-same store income, net (6,454)  (2,012)  —   —   (4,442)
    Same store NOI at share for the three months ended March 31, 2022$251,066  $214,917  $19,914  $16,235  $— 
              
    NOI at share for the three months ended March 31, 2021$250,108  $211,138  $18,107  $16,064  $4,799 
    Less NOI at share from:         
    Dispositions 741   741   —   —   — 
    Development properties (7,839)  (7,514)  —   (325)  — 
    Hotel Pennsylvania 7,144   7,144   —   —   — 
    Other non-same store income, net (6,694)  (1,895)  —   —   (4,799)
    Same store NOI at share for the three months ended March 31, 2021$243,460  $209,614  $18,107  $15,739  $— 
              
    Increase in same store NOI at share$7,606  $5,303  $1,807  $496  $— 
              
    % increase in same store NOI at share 3.1%  2.5%  10.0%  3.2%  0.0%
                        

    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, net and other non-cash adjustments. We present 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.

    VORNADO REALTY TRUST
    NON-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, theMART, 555 California Street and other investments for the three months ended March 31, 2022 compared to March 31, 2021.

    (Amounts in thousands)Total New York theMART 555
    California
    Street    		 Other
    NOI at share - cash basis for the three months ended March 31, 2022$281,128  $239,692  $20,436  $16,360  $4,640 
    Less NOI at share - cash basis from:         
    Change in ownership interest in One Park Avenue (4,779)  (4,779)  —   —   — 
    Dispositions 75   75   —   —   — 
    Development properties (13,929)  (13,929)  —   —   — 
    Other non-same store income, net (7,094)  (2,454)  —   —   (4,640)
    Same store NOI at share - cash basis for the three months ended March 31, 2022$255,401  $218,605  $20,436  $16,360  $— 
              
    NOI at share - cash basis for the three months ended March 31, 2021$248,910  $210,165  $17,840  $15,855  $5,050 
    Less NOI at share - cash basis from:         
    Dispositions 1,353   1,353   —   —   — 
    Development properties (8,794)  (8,469)  —   (325)  — 
    Hotel Pennsylvania 7,167   7,167   —   —   — 
    Other non-same store income, net (7,167)  (2,117)  —   —   (5,050)
    Same store NOI at share - cash basis for the three months ended March 31, 2021$241,469  $208,099  $17,840  $15,530  $— 
              
    Increase in same store NOI at share - cash basis$13,932  $10,506  $2,596  $830  $— 
              
    % increase in same store NOI at share - cash basis 5.8%  5.0%  14.6%  5.3%  0.0%
                        

    VORNADO REALTY TRUST
    NON-GAAP RECONCILIATIONS - CONTINUED

    Below are reconciliations of NOI at share to same store NOI at share for our New York segment, theMART, 555 California Street and other investments for the three months ended March 31, 2022 compared to December 31, 2021.

    (Amounts in thousands)Total New York theMART 555
    California
    Street    		 Other
    NOI at share for the three months ended March 31, 2022$284,258  $243,667  $19,914  $16,235  $4,442 
    Less NOI at share from:         
    Dispositions 78   78   —   —   — 
    Development properties (21,053)  (21,053)  —   —   — 
    Other non-same store income, net (6,146)  (1,704)  —   —   (4,442)
    Same store NOI at share for the three months ended March 31, 2022$257,137  $220,988  $19,914  $16,235  $— 
              
    NOI at share for the three months ended December 31, 2021$278,422  $241,939  $15,959  $16,596  $3,928 
    Less NOI at share from:         
    Dispositions (220)  (220)  —   —   — 
    Development properties (10,475)  (10,475)  —   —   — 
    Other non-same store income, net (6,769)  (2,841)  —   —   (3,928)
    Same store NOI at share for the three months ended December 31, 2021$260,958  $228,403  $15,959  $16,596  $— 
              
    (Decrease) increase in same store NOI at share$(3,821) $(7,415) $3,955  $(361) $— 
              
    % (decrease) increase in same store NOI at share(1.5)%  (3.2)%  24.8% (2.2)%  0.0%
                        

    VORNADO REALTY TRUST
    NON-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, theMART, 555 California Street and other investments for the three months ended March 31, 2022 compared to December 31, 2021.

    (Amounts in thousands)Total New York theMART 555
    California
    Street    		 Other
    NOI at share - cash basis for the three months ended March 31, 2022$281,128  $239,692  $20,436  $16,360  $4,640 
    Less NOI at share - cash basis from:         
    Dispositions 75   75   —   —   — 
    Development properties (14,126)  (14,126)  —   —   — 
    Other non-same store income, net (6,786)  (2,146)  —   —   (4,640)
    Same store NOI at share - cash basis for the three months ended March 31, 2022$260,291  $223,495  $20,436  $16,360  $— 
              
    NOI at share - cash basis for the three months ended December 31, 2021$278,170  $240,400  $18,413  $15,128  $4,229 
    Less NOI at share - cash basis from:         
    Dispositions (241)  (241)  —   —   — 
    Development properties (6,222)  (6,222)  —   —   — 
    Other non-same store income, net (7,847)  (3,618)  —   —   (4,229)
    Same store NOI at share - cash basis for the three months ended December 31, 2021$263,860  $230,319  $18,413  $15,128  $— 
              
    (Decrease) increase in same store NOI at share - cash basis$(3,569) $(6,824) $2,023  $1,232  $— 
              
    % (decrease) increase in same store NOI at share - cash basis(1.4)% (3.0)%  11.0%  8.1%  0.0%
                      

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