{"id":3733,"date":"2021-08-21T11:33:24","date_gmt":"2021-08-21T16:33:24","guid":{"rendered":"https:\/\/1reason.com\/re\/vornado-announces-second-quarter-2021-financial-results\/3733\/"},"modified":"2021-08-22T06:33:24","modified_gmt":"2021-08-22T11:33:24","slug":"vornado-announces-second-quarter-2021-financial-results","status":"publish","type":"post","link":"https:\/\/1reason.com\/re\/vornado-announces-second-quarter-2021-financial-results\/3733\/","title":{"rendered":"Vornado Announces Second Quarter 2021 Financial Results"},"content":{"rendered":"
Adjusting for the items that impact period-to-period comparability listed in the table on the following page, net income attributable to common shareholders, as adjusted (non-GAAP) for the quarter ended June 30, 2021 was $26,804,000, or $0.14 per diluted share, and net loss attributable to common shareholders, as adjusted (non-GAAP) for the quarter ended June 30, 2020 was $4,363,000, or $0.02 per diluted share. <\/p>\n

FUNDS FROM OPERATIONS (“FFO”) attributable to common shareholders plus assumed conversions (non-GAAP) for the quarter ended June 30, 2021 was $153,364,000, or $0.80 per diluted share, compared to $203,256,000, or $1.06 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 3, FFO attributable to common shareholders plus assumed conversions, as adjusted (non-GAAP) for the quarters ended June 30, 2021 and 2020 was $133,161,000 and $107,391,000, or $0.69 and $0.56 per diluted share, respectively.<\/p>\n

Six Months Ended June 30, 2021 Financial Results<\/u><\/em><\/strong><\/p>\n

NET INCOME attributable to common shareholders for the six months ended June 30, 2021 was $52,128,000, or $0.27 per diluted share, compared to net loss attributable to common shareholders of$192,787,000, or $1.01 per diluted share, for the six months ended June 30, 2020. Adjusting for the items that impact period-to-period comparability listed in the table on the following page, net income attributable to common shareholders, as adjusted (non-GAAP) for the six months ended June 30, 2021 and 2020 was $39,250,000 and $27,584,000, or $0.20 and $0.14 per diluted share, respectively.<\/p>\n

FFO attributable to common shareholders plus assumed conversions (non-GAAP) for the six months ended June 30, 2021 was $271,771,000, or $1.41 per diluted share, compared to $333,616,000, or $1.75 per diluted share, for the six months ended June 30, 2020. Adjusting for the items that impact period-to-period comparability listed in the table on page 3, FFO attributable to common shareholders plus assumed conversions, as adjusted (non-GAAP) for the six months ended June 30, 2021 and 2020 was $257,520,000 and $254,220,000, or $1.34 and $1.33 per diluted share, respectively.<\/p>\n

The following table reconciles our net income (loss) attributable to common shareholders to net income (loss) attributable to common shareholders, as adjusted (non-GAAP):<\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
(Amounts in thousands, except per share amounts)<\/td>\nFor the Three Months Ended<\/strong>
June 30,<\/strong><\/td>\n		\nFor the Six Months Ended<\/strong>
June 30,<\/strong><\/td>\n<\/tr>\n
\n2021<\/strong><\/td>\n\n2020<\/strong><\/td>\n\n2021<\/strong><\/td>\n\n2020<\/strong><\/td>\n<\/tr>\n
Net income (loss) attributable to common shareholders<\/td>\n$<\/td>\n48,045<\/td>\n\n\n$<\/td>\n(197,750<\/td>\n)<\/td>\n\n$<\/td>\n52,128<\/td>\n\n\n$<\/td>\n(192,787<\/td>\n)<\/td>\n<\/tr>\n
Per diluted share<\/td>\n$<\/td>\n0.25<\/td>\n\n\n$<\/td>\n(1.03<\/td>\n)<\/td>\n\n$<\/td>\n0.27<\/td>\n\n\n$<\/td>\n(1.01<\/td>\n)<\/td>\n<\/tr>\n
\n\n\n\n\n\n\n<\/tr>\n
Certain (income) expense items that impact net income (loss) attributable to common shareholders:<\/td>\n\n\n\n\n\n\n<\/tr>\n
After-tax net gain on sale of 220 Central Park South (“220 CPS”) condominium units<\/td>\n$<\/td>\n(22,208<\/td>\n)<\/td>\n\n$<\/td>\n(49,005<\/td>\n)<\/td>\n\n$<\/td>\n(22,208<\/td>\n)<\/td>\n\n$<\/td>\n(108,916<\/td>\n)<\/td>\n<\/tr>\n
Hotel Pennsylvania loss (temporarily closed on April 1, 2020, permanently closed on April 5, 2021)<\/td>\n4,992<\/td>\n\n\n5,133<\/td>\n\n\n13,982<\/td>\n\n\n17,526<\/td>\n<\/tr>\n
Our share of (income) loss from real estate fund investments<\/td>\n(1,639<\/td>\n)<\/td>\n\n6,089<\/td>\n\n\n(1,899<\/td>\n)<\/td>\n\n62,247<\/td>\n<\/tr>\n
Non-cash impairment loss on our investment in Fifth Avenue and Times Square JV, reversing a portion of the $2.559 billion gain recognized on the April 2019 transfer to the joint venture attributable to the GAAP required write-up of the retained interest<\/td>\n\u2014<\/td>\n\n\n305,859<\/td>\n\n\n\u2014<\/td>\n\n\n305,859<\/td>\n<\/tr>\n
608 Fifth Avenue non-cash lease liability extinguishment gain<\/td>\n\u2014<\/td>\n\n\n(70,260<\/td>\n)<\/td>\n\n\u2014<\/td>\n\n\n(70,260<\/td>\n)<\/td>\n<\/tr>\n
Credit losses on loans receivable resulting from a new GAAP accounting standard effective January 1, 2020<\/td>\n\u2014<\/td>\n\n\n6,108<\/td>\n\n\n\u2014<\/td>\n\n\n13,369<\/td>\n<\/tr>\n
Mark-to-market decrease in Pennsylvania Real Estate Investment Trust common shares (sold on January 23, 2020)<\/td>\n\u2014<\/td>\n\n\n\u2014<\/td>\n\n\n\u2014<\/td>\n\n\n4,938<\/td>\n<\/tr>\n
Other<\/td>\n(3,869<\/td>\n)<\/td>\n\n2,019<\/td>\n\n\n(3,675<\/td>\n)<\/td>\n\n9,915<\/td>\n<\/tr>\n
\n(22,724<\/td>\n)<\/td>\n\n205,943<\/td>\n\n\n(13,800<\/td>\n)<\/td>\n\n234,678<\/td>\n<\/tr>\n
Noncontrolling interests’ share of above adjustments<\/td>\n1,483<\/td>\n\n\n(12,556<\/td>\n)<\/td>\n\n922<\/td>\n\n\n(14,307<\/td>\n)<\/td>\n<\/tr>\n
Total of certain (income) expense items that impact net income (loss) attributable to common shareholders<\/td>\n$<\/td>\n(21,241<\/td>\n)<\/td>\n\n$<\/td>\n193,387<\/td>\n\n\n$<\/td>\n(12,878<\/td>\n)<\/td>\n\n$<\/td>\n220,371<\/td>\n<\/tr>\n
\n\n\n\n\n\n\n<\/tr>\n
Net income (loss) attributable to common shareholders, as adjusted (non-GAAP)<\/td>\n$<\/td>\n26,804<\/td>\n\n\n$<\/td>\n(4,363<\/td>\n)<\/td>\n\n$<\/td>\n39,250<\/td>\n\n\n$<\/td>\n27,584<\/td>\n<\/tr>\n
Per diluted share (non-GAAP)<\/td>\n$<\/td>\n0.14<\/td>\n\n\n$<\/td>\n(0.02<\/td>\n)<\/td>\n\n$<\/td>\n0.20<\/td>\n\n\n$<\/td>\n0.14<\/td>\n<\/tr>\n<\/table>\n

The following table reconciles our FFO attributable to common shareholders plus assumed conversions (non-GAAP) to FFO attributable to common shareholders plus assumed conversions, as adjusted (non-GAAP):<\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
(Amounts in thousands, except per share amounts)<\/td>\nFor the Three Months Ended<\/strong>
June 30,<\/strong><\/td>\n		\nFor the Six Months Ended<\/strong>
June 30,<\/strong><\/td>\n<\/tr>\n
\n2021<\/strong><\/td>\n\n2020<\/strong><\/td>\n\n2021<\/strong><\/td>\n\n2020<\/strong><\/td>\n<\/tr>\n
FFO attributable to common shareholders plus assumed conversions (non-GAAP)(1)<\/strong><\/sup><\/td>\n$<\/td>\n153,364<\/td>\n\n\n$<\/td>\n203,256<\/td>\n\n\n$<\/td>\n271,771<\/td>\n\n\n$<\/td>\n333,616<\/td>\n<\/tr>\n
Per diluted share (non-GAAP)<\/td>\n$<\/td>\n0.80<\/td>\n\n\n$<\/td>\n1.06<\/td>\n\n\n$<\/td>\n1.41<\/td>\n\n\n$<\/td>\n1.75<\/td>\n<\/tr>\n
\n\n\n\n\n\n\n<\/tr>\n
Certain (income) expense items that impact FFO attributable to common shareholders plus assumed conversions:<\/td>\n\n\n\n\n\n\n<\/tr>\n
After-tax net gain on sale of 220 CPS condominium units<\/td>\n$<\/td>\n(22,208<\/td>\n)<\/td>\n\n$<\/td>\n(49,005<\/td>\n)<\/td>\n\n$<\/td>\n(22,208<\/td>\n)<\/td>\n\n$<\/td>\n(108,916<\/td>\n)<\/td>\n<\/tr>\n
Hotel Pennsylvania loss (temporarily closed on April 1, 2020, permanently closed on April 5, 2021)<\/td>\n2,211<\/td>\n\n\n2,479<\/td>\n\n\n8,439<\/td>\n\n\n12,304<\/td>\n<\/tr>\n
Our share of (income) loss from real estate fund investments<\/td>\n(1,639<\/td>\n)<\/td>\n\n6,089<\/td>\n\n\n(1,899<\/td>\n)<\/td>\n\n62,247<\/td>\n<\/tr>\n
608 Fifth Avenue non-cash lease liability extinguishment gain<\/td>\n\u2014<\/td>\n\n\n(70,260<\/td>\n)<\/td>\n\n\u2014<\/td>\n\n\n(70,260<\/td>\n)<\/td>\n<\/tr>\n
Credit losses on loans receivable resulting from a new GAAP accounting standard effective January 1, 2020<\/td>\n\u2014<\/td>\n\n\n6,108<\/td>\n\n\n\u2014<\/td>\n\n\n13,369<\/td>\n<\/tr>\n
Other<\/td>\n381<\/td>\n\n\n2,459<\/td>\n\n\n764<\/td>\n\n\n6,664<\/td>\n<\/tr>\n
\n(21,255<\/td>\n)<\/td>\n\n(102,130<\/td>\n)<\/td>\n\n(14,904<\/td>\n)<\/td>\n\n(84,592<\/td>\n)<\/td>\n<\/tr>\n
Noncontrolling interests’ share of above adjustments<\/td>\n1,052<\/td>\n\n\n6,265<\/td>\n\n\n653<\/td>\n\n\n5,196<\/td>\n<\/tr>\n
Total of certain (income) expense items that impact FFO attributable to common shareholders plus assumed conversions, net<\/td>\n$<\/td>\n(20,203<\/td>\n)<\/td>\n\n$<\/td>\n(95,865<\/td>\n)<\/td>\n\n$<\/td>\n(14,251<\/td>\n)<\/td>\n\n$<\/td>\n(79,396<\/td>\n)<\/td>\n<\/tr>\n
\n\n\n\n\n\n\n<\/tr>\n
FFO attributable to common shareholders plus assumed conversions, as adjusted (non-GAAP)<\/td>\n$<\/td>\n133,161<\/td>\n\n\n$<\/td>\n107,391<\/td>\n\n\n$<\/td>\n257,520<\/td>\n\n\n$<\/td>\n254,220<\/td>\n<\/tr>\n
Per diluted share (non-GAAP)<\/td>\n$<\/td>\n0.69<\/td>\n\n\n$<\/td>\n0.56<\/td>\n\n\n$<\/td>\n1.34<\/td>\n\n\n$<\/td>\n1.33<\/td>\n<\/tr>\n<\/table>\n

____________________________________________________________<\/strong><\/p>\n

(1)<\/strong>See page 12 for a reconciliation of our net income (loss) attributable to common shareholders to FFO attributable to common shareholders plus assumed conversions (non-GAAP) for the three and six months ended June 30, 2021 and 2020.<\/p>\n


<\/u><\/em><\/strong><\/p>\n

COVID-19 Pandemic<\/u><\/em><\/strong><\/p>\n

Our business has been adversely affected as a result of the COVID-19 pandemic and the preventive measures taken to curb the spread of the virus. Some of the effects on us include the following:<\/p>\n