{"id":5396,"date":"2022-03-03T16:55:16","date_gmt":"2022-03-03T22:55:16","guid":{"rendered":"https:\/\/1reason.com\/re\/vornado-announces-fourth-quarter-2021-financial-results\/5396\/"},"modified":"2022-03-04T10:55:16","modified_gmt":"2022-03-04T16:55:16","slug":"vornado-announces-fourth-quarter-2021-financial-results","status":"publish","type":"post","link":"https:\/\/1reason.com\/re\/vornado-announces-fourth-quarter-2021-financial-results\/5396\/","title":{"rendered":"Vornado Announces Fourth 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 December 31, 2021 was $22,977,000, or $0.12 per diluted share, and $6,695,000, or $0.04 per diluted share for the quarter ended December 31, 2020. <\/p>\n

FUNDS FROM OPERATIONS (“FFO”) attributable to common shareholders plus assumed conversions (non-GAAP) for the quarter ended December 31, 2021 was $141,017,000, or $0.73 per diluted share, compared to $138,399,000, or $0.72 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 quarter ended December 31, 2021 was $156,130,000, or $0.81 per diluted share, and $130,389,000, or $0.68 per diluted share for the quarter ended December 31, 2020.<\/p>\n

Year Ended December 31, 2021 Financial Results<\/u><\/em><\/strong><\/p>\n

NET INCOME attributable to common shareholders for the year ended December 31, 2021 was $101,086,000, or $0.53 per diluted share, compared to net loss of$348,744,000, or $1.83 per diluted share, for the year ended December 31, 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 year ended December 31, 2021 was $88,153,000, or $0.46 per diluted share, and $23,893,000, or $0.12 per diluted share, for the year ended December 31, 2020.<\/p>\n

FFO attributable to common shareholders plus assumed conversions (non-GAAP) for the year ended December 31, 2021 was $571,074,000, or $2.97 per diluted share, compared to $750,522,000, or $3.93 per diluted share, for the year ended December 31, 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 year ended December 31, 2021 was $549,863,000, or $2.86 per diluted share, and $501,015,000, or $2.62 per diluted share, for the year ended December 31, 2020.<\/p>\n

The following table reconciles net income (loss) attributable to common shareholders to net income 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\n\n\n\n\n\n\n\n\n
(Amounts in thousands, except per share amounts)<\/td>\nFor the Three Months Ended<\/strong>
December 31,<\/strong><\/td>\n		\nFor the Year Ended<\/strong>
December 31,<\/strong><\/td>\n<\/tr>\n
\n\n2021<\/strong><\/td>\n\n\n\n2020<\/strong><\/td>\n\n\n\n2021<\/strong><\/td>\n\n\n\n2020<\/strong><\/td>\n<\/tr>\n
Net income (loss) attributable to common shareholders<\/td>\n$<\/td>\n11,269<\/td>\n\n\n$<\/td>\n(209,127<\/td>\n)<\/td>\n\n$<\/td>\n101,086<\/td>\n\n\n$<\/td>\n(348,744<\/td>\n)<\/td>\n<\/tr>\n
Per diluted share<\/td>\n$<\/td>\n0.06<\/td>\n\n\n$<\/td>\n(1.09<\/td>\n)<\/td>\n\n$<\/td>\n0.53<\/td>\n\n\n$<\/td>\n(1.83<\/td>\n)<\/td>\n<\/tr>\n
\n\n\n\n\n\n\n<\/tr>\n
Certain expense (income) items that impact net income (loss) attributable to common shareholders:<\/td>\n\n\n\n\n\n\n<\/tr>\n
Our share of defeasance costs and write-off of unamortized deferred financing costs related to 1290 Avenue of the Americas refinancing<\/td>\n$<\/td>\n17,882<\/td>\n\n\n$<\/td>\n\u2014<\/td>\n\n\n$<\/td>\n17,882<\/td>\n\n\n$<\/td>\n\u2014<\/td>\n<\/tr>\n
After-tax net gain on sale of 220 Central Park South (“220 CPS”) condominium units<\/td>\n\n(13,584<\/td>\n)<\/td>\n\n\n(36,274<\/td>\n)<\/td>\n\n\n(44,607<\/td>\n)<\/td>\n\n\n(332,099<\/td>\n)<\/td>\n<\/tr>\n
Our share of Alexander’s gain on sale of Paramus, New Jersey property pursuant to IKEA Property, Inc.’s purchase option<\/td>\n\n(11,620<\/td>\n)<\/td>\n\n\n\u2014<\/td>\n\n\n\n(11,620<\/td>\n)<\/td>\n\n\n\u2014<\/td>\n<\/tr>\n
Deferred tax liability on our investment in Farley Office and Retail (held through a taxable REIT subsidiary)<\/td>\n\n9,180<\/td>\n\n\n\n\u2014<\/td>\n\n\n\n10,868<\/td>\n\n\n\n\u2014<\/td>\n<\/tr>\n
Hotel Pennsylvania loss (permanently closed on April 5, 2021)<\/td>\n\n8,998<\/td>\n\n\n\n6,048<\/td>\n\n\n\n29,472<\/td>\n\n\n\n31,280<\/td>\n<\/tr>\n
Our share of (income) loss from real estate fund investments<\/td>\n\n(1,564<\/td>\n)<\/td>\n\n\n(1,657<\/td>\n)<\/td>\n\n\n(3,757<\/td>\n)<\/td>\n\n\n63,114<\/td>\n<\/tr>\n
Real estate impairment losses<\/td>\n\n\u2014<\/td>\n\n\n\n236,286<\/td>\n\n\n\n7,880<\/td>\n\n\n\n236,286<\/td>\n<\/tr>\n
Severance and other reduction-in-force related expenses<\/td>\n\n\u2014<\/td>\n\n\n\n23,368<\/td>\n\n\n\n\u2014<\/td>\n\n\n\n23,368<\/td>\n<\/tr>\n
Tax benefit recognized by our taxable REIT subsidiaries<\/td>\n\n\u2014<\/td>\n\n\n\n\u2014<\/td>\n\n\n\n(27,910<\/td>\n)<\/td>\n\n\n\u2014<\/td>\n<\/tr>\n
Previously capitalized Series K preferred share issuance costs<\/td>\n\n\u2014<\/td>\n\n\n\n\u2014<\/td>\n\n\n\n9,033<\/td>\n\n\n\n\u2014<\/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\n\u2014<\/td>\n\n\n\n\u2014<\/td>\n\n\n\n\u2014<\/td>\n\n\n\n409,060<\/td>\n<\/tr>\n
608 Fifth Avenue non-cash lease liability extinguishment gain<\/td>\n\n\u2014<\/td>\n\n\n\n\u2014<\/td>\n\n\n\n\u2014<\/td>\n\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\n\u2014<\/td>\n\n\n\n\u2014<\/td>\n\n\n\n\u2014<\/td>\n\n\n\n13,369<\/td>\n<\/tr>\n
Severance accrual related to Hotel Pennsylvania closure, net of $3,145 of income tax benefit<\/td>\n\n\u2014<\/td>\n\n\n\n\u2014<\/td>\n\n\n\n\u2014<\/td>\n\n\n\n6,101<\/td>\n<\/tr>\n
Mark-to-market decrease in Pennsylvania Real Estate Investment Trust common shares (sold on January 23, 2020)<\/td>\n\n\u2014<\/td>\n\n\n\n\u2014<\/td>\n\n\n\n\u2014<\/td>\n\n\n\n4,938<\/td>\n<\/tr>\n
Other<\/td>\n\n3,251<\/td>\n\n\n\n1,905<\/td>\n\n\n\n(1,379<\/td>\n)<\/td>\n\n\n12,586<\/td>\n<\/tr>\n
\n\n12,543<\/td>\n\n\n\n229,676<\/td>\n\n\n\n(14,138<\/td>\n)<\/td>\n\n\n397,743<\/td>\n<\/tr>\n
Noncontrolling interests’ share of above adjustments<\/td>\n\n(835<\/td>\n)<\/td>\n\n\n(13,854<\/td>\n)<\/td>\n\n\n1,205<\/td>\n\n\n\n(25,106<\/td>\n)<\/td>\n<\/tr>\n
Total of certain expense (income) items that impact net income (loss) attributable to common shareholders<\/td>\n$<\/td>\n11,708<\/td>\n\n\n$<\/td>\n215,822<\/td>\n\n\n$<\/td>\n(12,933<\/td>\n)<\/td>\n\n$<\/td>\n372,637<\/td>\n<\/tr>\n
Per diluted share (non-GAAP)<\/td>\n$<\/td>\n0.06<\/td>\n\n\n$<\/td>\n1.13<\/td>\n\n\n$<\/td>\n(0.07<\/td>\n)<\/td>\n\n$<\/td>\n1.95<\/td>\n<\/tr>\n
\n\n\n\n\n\n\n<\/tr>\n
Net income attributable to common shareholders, as adjusted (non-GAAP)<\/td>\n$<\/td>\n22,977<\/td>\n\n\n$<\/td>\n6,695<\/td>\n\n\n$<\/td>\n88,153<\/td>\n\n\n$<\/td>\n23,893<\/td>\n<\/tr>\n
Per diluted share (non-GAAP)<\/td>\n$<\/td>\n0.12<\/td>\n\n\n$<\/td>\n0.04<\/td>\n\n\n$<\/td>\n0.46<\/td>\n\n\n$<\/td>\n0.12<\/td>\n<\/tr>\n<\/table>\n

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):<\/p>\n\n\n\n\n\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>
December 31,<\/strong><\/td>\n		\nFor the Year Ended<\/strong>
December 31,<\/strong><\/td>\n<\/tr>\n
\n\n2021<\/strong><\/td>\n\n\n\n2020<\/strong><\/td>\n\n\n\n2021<\/strong><\/td>\n\n\n\n2020<\/strong><\/td>\n<\/tr>\n
FFO attributable to common shareholders plus assumed conversions (non-GAAP)<\/td>\n$<\/td>\n141,017<\/td>\n\n\n$<\/td>\n138,399<\/td>\n\n\n$<\/td>\n571,074<\/td>\n\n\n$<\/td>\n750,522<\/td>\n<\/tr>\n
Per diluted share (non-GAAP)<\/td>\n$<\/td>\n0.73<\/td>\n\n\n$<\/td>\n0.72<\/td>\n\n\n$<\/td>\n2.97<\/td>\n\n\n$<\/td>\n3.93<\/td>\n<\/tr>\n
\n\n\n\n\n\n\n<\/tr>\n
Certain expense (income) items that impact FFO attributable to common shareholders plus assumed conversions:<\/td>\n\n\n\n\n\n\n<\/tr>\n
Our share of defeasance costs and write-off of unamortized deferred financing costs related to 1290 Avenue of the Americas refinancing<\/td>\n$<\/td>\n17,882<\/td>\n\n\n$<\/td>\n\u2014<\/td>\n\n\n$<\/td>\n17,882<\/td>\n\n\n$<\/td>\n\u2014<\/td>\n<\/tr>\n
After-tax net gain on sale of 220 CPS condominium units<\/td>\n\n(13,584<\/td>\n)<\/td>\n\n\n(36,274<\/td>\n)<\/td>\n\n\n(44,607<\/td>\n)<\/td>\n\n\n(332,099<\/td>\n)<\/td>\n<\/tr>\n
Deferred tax liability on our investment in Farley Office and Retail (held through a taxable REIT subsidiary)<\/td>\n\n9,180<\/td>\n\n\n\n\u2014<\/td>\n\n\n\n10,868<\/td>\n\n\n\n\u2014<\/td>\n<\/tr>\n
Our share of (income) loss from real estate fund investments<\/td>\n\n(1,564<\/td>\n)<\/td>\n\n\n(1,657<\/td>\n)<\/td>\n\n\n(3,757<\/td>\n)<\/td>\n\n\n63,114<\/td>\n<\/tr>\n
Severance and other reduction-in-force related expenses<\/td>\n\n\u2014<\/td>\n\n\n\n23,368<\/td>\n\n\n\n\u2014<\/td>\n\n\n\n23,368<\/td>\n<\/tr>\n
Hotel Pennsylvania loss (permanently closed on April 5, 2021)<\/td>\n\n\u2014<\/td>\n\n\n\n3,412<\/td>\n\n\n\n12,331<\/td>\n\n\n\n20,843<\/td>\n<\/tr>\n
Tax benefit recognized by our taxable REIT subsidiaries<\/td>\n\n\u2014<\/td>\n\n\n\n\u2014<\/td>\n\n\n\n(27,910<\/td>\n)<\/td>\n\n\n\u2014<\/td>\n<\/tr>\n
Previously capitalized Series K preferred share issuance costs<\/td>\n\n\u2014<\/td>\n\n\n\n\u2014<\/td>\n\n\n\n9,033<\/td>\n\n\n\n\u2014<\/td>\n<\/tr>\n
608 Fifth Avenue non-cash lease liability extinguishment gain<\/td>\n\n\u2014<\/td>\n\n\n\n\u2014<\/td>\n\n\n\n\u2014<\/td>\n\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\n\u2014<\/td>\n\n\n\n\u2014<\/td>\n\n\n\n\u2014<\/td>\n\n\n\n13,369<\/td>\n<\/tr>\n
Severance accrual related to Hotel Pennsylvania closure, net of $3,145 of income tax benefit<\/td>\n\n\u2014<\/td>\n\n\n\n\u2014<\/td>\n\n\n\n\u2014<\/td>\n\n\n\n6,101<\/td>\n<\/tr>\n
Other<\/td>\n\n4,277<\/td>\n\n\n\n2,615<\/td>\n\n\n\n3,804<\/td>\n\n\n\n9,660<\/td>\n<\/tr>\n
\n\n16,191<\/td>\n\n\n\n(8,536<\/td>\n)<\/td>\n\n\n(22,356<\/td>\n)<\/td>\n\n\n(265,904<\/td>\n)<\/td>\n<\/tr>\n
Noncontrolling interests’ share of above adjustments<\/td>\n\n(1,078<\/td>\n)<\/td>\n\n\n526<\/td>\n\n\n\n1,145<\/td>\n\n\n\n16,397<\/td>\n<\/tr>\n
Total of certain expense (income) items that impact FFO attributable to common shareholders plus assumed conversions, net<\/td>\n$<\/td>\n15,113<\/td>\n\n\n$<\/td>\n(8,010<\/td>\n)<\/td>\n\n$<\/td>\n(21,211<\/td>\n)<\/td>\n\n$<\/td>\n(249,507<\/td>\n)<\/td>\n<\/tr>\n
Per diluted share (non-GAAP)<\/td>\n$<\/td>\n0.08<\/td>\n\n\n$<\/td>\n(0.04<\/td>\n)<\/td>\n\n$<\/td>\n(0.11<\/td>\n)<\/td>\n\n$<\/td>\n(1.31<\/td>\n)<\/td>\n<\/tr>\n
\n\n\n\n\n\n\n<\/tr>\n
FFO attributable to common shareholders plus assumed conversions, as adjusted (non-GAAP)<\/td>\n$<\/td>\n156,130<\/td>\n\n\n$<\/td>\n130,389<\/td>\n\n\n$<\/td>\n549,863<\/td>\n\n\n$<\/td>\n501,015<\/td>\n<\/tr>\n
Per diluted share (non-GAAP)<\/td>\n$<\/td>\n0.81<\/td>\n\n\n$<\/td>\n0.68<\/td>\n\n\n$<\/td>\n2.86<\/td>\n\n\n$<\/td>\n2.62<\/td>\n<\/tr>\n<\/table>\n

________________________________________
<\/strong>(1)<\/strong>See page 13 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, 2021 and 2020.<\/p>\n

FFO, as Adjusted Bridge – Q4 2021 vs. Q4 2020<\/u><\/em><\/strong><\/p>\n

The following table bridges our FFO attributable to common shareholders plus assumed conversions, as adjusted (non-GAAP) for the three months ended December 31, 2020 to FFO attributable to common shareholders plus assumed conversions, as adjusted (non-GAAP) for the three months ended December 31, 2021:<\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
(Amounts in millions, except per share amounts)<\/td>\nFFO, as Adjusted<\/strong><\/td>\n<\/tr>\n
\nAmount<\/strong><\/td>\n\nPer Share<\/strong><\/td>\n<\/tr>\n
FFO attributable to common shareholders plus assumed conversions, as adjusted (non-GAAP) for the three months ended December 31, 2020<\/strong><\/td>\n$<\/strong><\/td>\n130.4<\/strong><\/td>\n\n\n$<\/strong><\/td>\n0.68<\/strong><\/td>\n<\/tr>\n
\n\n\n<\/tr>\n
Increase (decrease) in FFO, as adjusted due to:<\/td>\n\n\n<\/tr>\n
Variable businesses (primarily signage and trade shows)<\/td>\n\n12.5<\/td>\n\n\n<\/tr>\n
Acquisition of our partner’s 45% ownership interest in One Park Avenue on August 5, 2021<\/td>\n\n6.2<\/td>\n\n\n<\/tr>\n
General and administrative (primarily due to overhead reduction program announced in December 2020)<\/td>\n\n5.6<\/td>\n\n\n<\/tr>\n
Increase in real estate tax expense primarily due to a recent increase in the triennial tax-assessed value of theMART<\/td>\n\n(3.8<\/td>\n)<\/td>\n\n<\/tr>\n
Rent commencement and other tenant related items<\/td>\n\n3.5<\/td>\n\n\n<\/tr>\n
Other, net<\/td>\n\n3.9<\/td>\n\n\n<\/tr>\n
\n\n27.9<\/td>\n\n\n<\/tr>\n
Noncontrolling interests’ share of above items<\/td>\n\n(2.2<\/td>\n)<\/td>\n\n<\/tr>\n
Net increase<\/td>\n\n25.7<\/td>\n\n\n\n0.13<\/td>\n<\/tr>\n
\n\n\n<\/tr>\n
FFO attributable to common shareholders plus assumed conversions, as adjusted (non-GAAP) for the three months ended December 31, 2021<\/strong><\/td>\n$<\/strong><\/td>\n156.1<\/strong><\/td>\n\n\n$<\/strong><\/td>\n0.81<\/strong><\/td>\n<\/tr>\n<\/table>\n

See page 13 for reconciliations 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, 2021 and 2020. 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 3 of this press release.<\/p>\n

Acquisition:<\/strong><\/p>\n

One Park Avenue<\/em><\/p>\n

On August 5, 2021, pursuant to a right of first offer, we increased our ownership interest in One Park Avenue, a 944,000 square foot Manhattan office building, to 100.0% by acquiring our joint venture partner’s 45.0% ownership interest in the property. The purchase price values the property at $875,000,000. We paid approximately $158,000,000 in cash and assumed our joint venture partner’s share of the $525,000,000 mortgage loan. We previously accounted for our investment under the equity method and have consolidated the accounts of the property from the date of acquisition of the additional 45.0% ownership interest.<\/p>\n

Dispositions: <\/strong><\/p>\n

220 Central Park South (“220 CPS”)<\/em><\/p>\n

During the three months ended December 31, 2021, we closed on the sale of two condominium units at 220 CPS for net proceeds of $39,721,000 resulting in a financial statement net gain of $14,959,000 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, $1,375,000 of income tax expense was recognized on our consolidated statements of income. During the year ended December 31, 2021, we closed on the sale of six condominium units at 220 CPS for net proceeds of $137,404,000 resulting in a financial statement net gain of $50,318,000 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, $5,711,000 of income tax expense was recognized on our consolidated statements of income. From inception to December 31, 2021, we have closed on the sale of 106 units for net proceeds of $3,006,896,000 resulting in financial statement net gains of $1,117,255,000.<\/p>\n

Alexander\u2019s, Inc. (\u201cAlexander\u2019s\u201d)<\/em><\/p>\n

On June 4, 2021, Alexander’s completed the sale of a parcel of land in the Bronx, New York for $10,000,000. As a result of the sale, we recognized our $2,956,000 share of the net gain and also received a $300,000 sales commission paid by Alexander’s.<\/p>\n

On October 4, 2021, Alexander’s sold its Paramus, New Jersey property to IKEA Property, Inc. (“IKEA”), the tenant at the property, for $75,000,000 pursuant to IKEA’s purchase option contained in the lease. The property was encumbered by a $68,000,000 mortgage loan which was repaid at closing of the sale. As a result of the sale, we recognized our $11,620,000 share of the net gain and also received a $750,000 sales commission paid by Alexander’s.<\/p>\n

Madison Avenue<\/em><\/p>\n

On September 24, 2021, we sold three Manhattan retail properties located at 677-679, 759-771 and 828-850 Madison Avenue in two separate sale transactions for an aggregate sales price of $100,000,000. Net proceeds from the sales were $96,503,000. In connection with the sales, we recorded $7,880,000 of non-cash impairment losses which are included in “impairment losses, transaction related costs and other” on our consolidated statements of income.<\/p>\n

Vornado Capital Partners Real Estate Fund (the “Fund”)<\/em><\/p>\n

On December 7, 2021, the Fund completed the sale of the retail condominium located at 501 Broadway for $27,500,000. From the inception of this investment through its disposition, the Fund realized a $6,346,000 net loss.<\/p>\n

SoHo Properties<\/em><\/p>\n

On May 10, 2021, we entered into an agreement to sell two Manhattan retail properties located at 478-482 Broadway and 155 Spring Street for a sales price of $84,500,000. On January 13, 2022, we completed the sale transaction and realized net proceeds of $81,399,000. In connection with the sale, we will recognize a net gain of approximately $850,000 in the first quarter of 2022.<\/p>\n

Financings<\/strong>:<\/p>\n

One Park Avenue<\/em><\/p>\n

On February 26, 2021, the joint venture completed a $525,000,000 refinancing of One Park Avenue. The interest-only loan bears a rate of LIBOR plus 1.11% (1.22% as of December 31, 2021) and matures in March 2023, with three one-year extension options (March 2026, as fully extended). We realized our $105,000,000 share of net proceeds. The loan replaced the previous $300,000,000 loan that bore interest at LIBOR plus 1.75% and was scheduled to mature in March 2021.<\/p>\n

PENN 11<\/em><\/p>\n

On March 7, 2021, we entered into an interest rate swap agreement for our $500,000,000 PENN 11 mortgage loan to swap the interest rate on the mortgage loan from LIBOR plus 2.75% to a fixed rate of 3.03% through March 2024. On December 1, 2021, we completed a loan modification which reduced the interest rate on the mortgage loan to LIBOR plus 1.95% (2.05% as of December 31, 2021) from LIBOR plus 2.75%, resulting in a fixed rate of 2.23% pursuant to the interest rate swap agreement.<\/p>\n

Financings – continued<\/strong>:<\/p>\n

909 Third Avenue<\/em><\/p>\n

On March 26, 2021, we completed a $350,000,000 refinancing of 909 Third Avenue, a 1.4million square foot Manhattan office building. The interest-only loan bears a fixed rate of 3.23% and matures in April 2031. The loan replaced the previous $350,000,000 loan that bore interest at a fixed rate of 3.91% and was scheduled to mature in May 2021.<\/p>\n

Unsecured Revolving Credit Facility<\/em><\/p>\n

On April 15, 2021, we extended our $1.25billion unsecured revolving credit facility from January 2023 (as fully extended) to April 2026 (as fully extended). The interest rate on the extended facility was lowered to LIBOR plus 0.90% from LIBOR plus 1.00%. We subsequently qualified for a sustainability margin adjustment by achieving certain key performance indicator (KPI) metrics, which reduced our interest rate by 0.01% to LIBOR plus 0.89%. The facility fee remains at 20 basis points. Our separate $1.50billion unsecured revolving credit facility matures in March 2024 (as fully extended) and has an interest rate of LIBOR plus 0.90% and a facility fee of 20 basis points.<\/p>\n

555 California Street<\/em><\/p>\n

On May 10, 2021, we completed a $1.2billion refinancing of 555 California Street, a three-building 1.8million square foot office campus in San Francisco, in which we own a 70.0% controlling interest. The interest-only loan bears a rate of LIBOR plus 1.93% in years one through five (2.04% as of December 31, 2021), LIBOR plus 2.18% in year six and LIBOR plus 2.43% in year seven. The loan matures in May 2023, with five one-year extension options (May 2028 as fully extended). We swapped the interest rate on our $840,000,000 share of the loan to a fixed rate of 2.26% through May 2024. The loan replaced the previous $533,000,000 loan that bore interest at a fixed rate of 5.10% and was scheduled to mature in September 2021.<\/p>\n

Senior Unsecured Notes<\/em><\/p>\n

On May 24, 2021, we completed a green bond public offering of $400,000,000 2.15% senior unsecured notes due June 1, 2026 (“2026 Notes”) and $350,000,000 3.40% senior unsecured notes due June 1, 2031 (“2031 Notes”). Interest on the senior unsecured notes is payable semi-annually on June 1 and December 1, commencing December 1, 2021. The 2026 Notes were sold at 99.86% of their face amount to yield 2.18% and the 2031 Notes were sold at 99.59% of their face amount to yield 3.45%.<\/p>\n

theMART<\/em><\/p>\n

On May 28, 2021, we repaid the $675,000,000 mortgage loan on theMART, a 3.7million square foot commercial building in Chicago, with proceeds from our senior unsecured notes offering. The loan bore interest at 2.70% and was scheduled to mature in September 2021.<\/p>\n

Preferred Securities<\/em><\/p>\n

On September 22, 2021, Vornado sold 12,000,000 4.45% Series O cumulative redeemable preferred shares at a price of $25.00 per share, pursuant to an effective registration statement. Vornado received aggregate net proceeds of $291,153,000, after underwriters’ discount and issuance costs, and contributed the net proceeds to the Operating Partnership in exchange for 12,000,000 4.45% Series O preferred units (with economic terms that mirror those of the Series O preferred shares). Dividends on the Series O preferred shares\/units are cumulative and payable quarterly in arrears. The Series O preferred shares\/units are not convertible into, or exchangeable for, any of our properties or securities. On or after five years from the date of issuance (or sooner under limited circumstances), Vornado may redeem the Series O preferred shares\/units at a redemption price of $25.00 per share\/unit, plus accrued and unpaid dividends\/distributions through the date of redemption. The Series O preferred shares\/units have no maturity date and will remain outstanding indefinitely unless redeemed by Vornado. Vornado used the net proceeds for the redemption of its 5.70% Series K cumulative redeemable preferred shares\/units.<\/p>\n

On October 13, 2021, we redeemed all of the outstanding 5.70% Series K preferred shares\/units at their redemption price of $25.00 per share\/unit, or $300,000,000 in the aggregate, plus accrued and unpaid dividends\/distributions through the date of redemption. We recognized $9,033,000 of previously capitalized issuance costs in “Series K preferred share\/unit issuance costs” on our consolidated statements of income during the third quarter of 2021, when the preferred shares\/units were called for redemption.<\/p>\n

1290 Avenue of the Americas<\/em><\/p>\n

On November 16, 2021, we completed a $950,000,000 refinancing of 1290 Avenue of the Americas, a 2.1 million square foot Class A Manhattan office building, in which we own a 70.0% controlling interest. The interest-only loan bears a rate of LIBOR plus 1.51% (1.62% as of December 31, 2021) in years one to five, increasing 0.25% in both years six and seven. The loan matures in November 2023 with five one-year extension options (November 2028 as fully extended). We defeased the existing $950,000,000 loan that bore interest at a fixed rate of 3.34% and was scheduled to mature in November 2022. As a result, we incurred $23,729,000 of defeasance costs, which are included in “interest and debt expense” on our consolidated statements of income, of which $7,119,000 is attributable to noncontrolling interest.<\/p>\n

Leasing Activity For the Three Months Ended December 31, 2021:<\/strong><\/p>\n