{"id":984,"date":"2020-12-02T18:05:19","date_gmt":"2020-12-03T00:05:19","guid":{"rendered":"https:\/\/1reason.com\/re\/vornado-announces-third-quarter-2020-financial-results\/984\/"},"modified":"2020-12-03T12:05:19","modified_gmt":"2020-12-03T18:05:19","slug":"vornado-announces-third-quarter-2020-financial-results","status":"publish","type":"post","link":"https:\/\/1reason.com\/re\/vornado-announces-third-quarter-2020-financial-results\/984\/","title":{"rendered":"Vornado Announces Third Quarter 2020 Financial Results"},"content":{"rendered":"
Adjusting for the items that impact period-to-period comparability listed in the table on the following page, net loss attributable to common shareholders, as adjusted (non-GAAP) for the quarter ended September 30, 2020 was $16,613,000, or $0.09 per diluted share, and net income attributable to common shareholders, as adjusted for the quarter ended September 30, 2019 was $52,624,000, or $0.28 per diluted share. <\/p>\n

FUNDS FROM OPERATIONS (“FFO”) attributable to common shareholders plus assumed conversions (non-GAAP) for the quarter ended September 30, 2020 was $278,507,000, or $1.46 per diluted share, compared to $279,509,000, or $1.46 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 September 30, 2020 and 2019 was $112,595,000 and $170,966,000, or $0.59 and $0.89 per diluted share, respectively.<\/p>\n

Nine Months Ended September 30, 2020 Financial Results<\/u><\/em><\/strong><\/p>\n

NET LOSS attributable to common shareholders for the nine months ended September 30, 2020 was $139,617,000, or $0.73 per diluted share, compared to net income attributable to common shareholders of$2.905 billion, or $15.20 per diluted share, for the nine months ended September 30, 2019. Adjusting for the items that impact period-to-period comparability listed in the table on the following page, net loss attributable to common shareholders, as adjusted (non-GAAP) for the nine months ended September 30, 2020 was $6,523,000, or $0.03 per diluted share, and net income attributable to common shareholders, as adjusted for the quarter ended September 30, 2019 was $120,372,000, or $0.63 per diluted share, respectively.<\/p>\n

FFO attributable to common shareholders plus assumed conversions (non-GAAP) for the nine months ended September 30, 2020 was $612,123,000, or $3.20 per diluted share, compared to $691,522,000, or $3.62 per diluted share, for the nine months ended September 30, 2019. 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 nine months ended September 30, 2020 and 2019 was $356,065,000 and $494,936,000, or $1.86 and $2.59 per diluted share, respectively.<\/p>\n

The following table reconciles our net income (loss) attributable to common shareholders to net (loss) 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
(Amounts in thousands, except per share amounts)<\/td>\nFor the Three Months Ended<\/strong>
September 30,<\/strong><\/td>\n		\nFor the Nine Months Ended<\/strong>
September 30,<\/strong><\/td>\n<\/tr>\n
\n2020<\/strong><\/td>\n\n2019<\/strong><\/td>\n\n2020<\/strong><\/td>\n\n2019<\/strong><\/td>\n<\/tr>\n
Net income (loss) attributable to common shareholders<\/td>\n$<\/td>\n53,170<\/td>\n\n\n\n$<\/td>\n322,906<\/td>\n\n\n\n$<\/td>\n(139,617<\/td>\n)<\/td>\n\n\n$<\/td>\n2,904,589<\/td>\n\n<\/tr>\n
Per diluted share<\/td>\n$<\/td>\n0.28<\/td>\n\n\n\n$<\/td>\n1.69<\/td>\n\n\n\n$<\/td>\n(0.73<\/td>\n)<\/td>\n\n\n$<\/td>\n15.20<\/td>\n\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$<\/td>\n(186,909<\/td>\n)<\/td>\n\n\n$<\/td>\n(109,035<\/td>\n)<\/td>\n\n\n$<\/td>\n(295,825<\/td>\n)<\/td>\n\n\n$<\/td>\n(328,910<\/td>\n)<\/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>\n103,201<\/td>\n\n\n\n\u2014<\/td>\n\n\n\n409,060<\/td>\n\n\n\n\u2014<\/td>\n\n<\/tr>\n
Severance accrual related to Hotel Pennsylvania closure, net of $3,145 of income tax benefit<\/td>\n6,101<\/td>\n\n\n\n\u2014<\/td>\n\n\n\n6,101<\/td>\n\n\n\n\u2014<\/td>\n\n<\/tr>\n
Our share of loss (income) from real estate fund investments<\/td>\n2,524<\/td>\n\n\n\n(1,455<\/td>\n)<\/td>\n\n\n64,771<\/td>\n\n\n\n22,207<\/td>\n\n<\/tr>\n
Net gains on sale of real estate (primarily our 25% interest in 330 Madison Avenue in 2019)<\/td>\n\u2014<\/td>\n\n\n\n(178,769<\/td>\n)<\/td>\n\n\n\u2014<\/td>\n\n\n\n(178,769<\/td>\n)<\/td>\n<\/tr>\n
Mark-to-market decrease in Pennsylvania Real Estate Investment Trust (“PREIT”) common shares (accounted for as a marketable security from March 12, 2019 and sold on January 23, 2020)<\/td>\n\u2014<\/td>\n\n\n\n4,875<\/td>\n\n\n\n4,938<\/td>\n\n\n\n19,211<\/td>\n\n<\/tr>\n
608 Fifth Avenue non-cash (lease liability extinguishment gain) impairment loss and related write-offs<\/td>\n\u2014<\/td>\n\n\n\n\u2014<\/td>\n\n\n\n(70,260<\/td>\n)<\/td>\n\n\n101,092<\/td>\n\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\n\n\u2014<\/td>\n\n\n\n13,369<\/td>\n\n\n\n\u2014<\/td>\n\n<\/tr>\n
Net gain on transfer to Fifth Avenue and Times Square retail JV, net of $11,945 attributable to noncontrolling interests<\/td>\n\u2014<\/td>\n\n\n\n\u2014<\/td>\n\n\n\n\u2014<\/td>\n\n\n\n(2,559,154<\/td>\n)<\/td>\n<\/tr>\n
Net gain from sale of Urban Edge Properties (“UE”) common shares (sold on March 4, 2019)<\/td>\n\u2014<\/td>\n\n\n\n\u2014<\/td>\n\n\n\n\u2014<\/td>\n\n\n\n(62,395<\/td>\n)<\/td>\n<\/tr>\n
Prepayment penalty in connection with redemption of $400 million 5.00% senior unsecured notes due January 2022<\/td>\n\u2014<\/td>\n\n\n\n\u2014<\/td>\n\n\n\n\u2014<\/td>\n\n\n\n22,540<\/td>\n\n<\/tr>\n
Mark-to-market increase in Lexington Realty Trust (“Lexington”) common shares (sold on March 1, 2019)<\/td>\n\u2014<\/td>\n\n\n\n\u2014<\/td>\n\n\n\n\u2014<\/td>\n\n\n\n(16,068<\/td>\n)<\/td>\n<\/tr>\n
Real estate impairment losses<\/td>\n\u2014<\/td>\n\n\n\n\u2014<\/td>\n\n\n\n\u2014<\/td>\n\n\n\n7,500<\/td>\n\n<\/tr>\n
Other<\/td>\n766<\/td>\n\n\n\n(4,811<\/td>\n)<\/td>\n\n\n10,681<\/td>\n\n\n\n(857<\/td>\n)<\/td>\n<\/tr>\n
\n(74,317<\/td>\n)<\/td>\n\n\n(289,195<\/td>\n)<\/td>\n\n\n142,835<\/td>\n\n\n\n(2,973,603<\/td>\n)<\/td>\n<\/tr>\n
Noncontrolling interests’ share of above adjustments<\/td>\n4,534<\/td>\n\n\n\n18,913<\/td>\n\n\n\n(9,741<\/td>\n)<\/td>\n\n\n189,386<\/td>\n\n<\/tr>\n
Total of certain (income) expense items that impact net income (loss) attributable to common shareholders<\/td>\n$<\/td>\n(69,783<\/td>\n)<\/td>\n\n\n$<\/td>\n(270,282<\/td>\n)<\/td>\n\n\n$<\/td>\n133,094<\/td>\n\n\n\n$<\/td>\n(2,784,217<\/td>\n)<\/td>\n<\/tr>\n
\n\n\n\n\n\n\n<\/tr>\n
Net (loss) income attributable to common shareholders, as adjusted (non-GAAP)<\/td>\n$<\/td>\n(16,613<\/td>\n)<\/td>\n\n\n$<\/td>\n52,624<\/td>\n\n\n\n$<\/td>\n(6,523<\/td>\n)<\/td>\n\n\n$<\/td>\n120,372<\/td>\n\n<\/tr>\n
Per diluted share (non-GAAP)<\/td>\n$<\/td>\n(0.09<\/td>\n)<\/td>\n\n\n$<\/td>\n0.28<\/td>\n\n\n\n$<\/td>\n(0.03<\/td>\n)<\/td>\n\n\n$<\/td>\n0.63<\/td>\n\n<\/tr>\n<\/table>\n

<\/p>\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\n
(Amounts in thousands, except per share amounts)<\/td>\nFor the Three Months Ended<\/strong>
September 30,<\/strong>
<\/strong><\/td>\n		\nFor the Nine Months Ended<\/strong>
September 30,<\/strong><\/td>\n<\/tr>\n
\n2020<\/strong>
<\/strong><\/td>\n		\n2019<\/strong>
<\/strong><\/td>\n		\n2020<\/strong><\/td>\n\n2019<\/strong><\/td>\n<\/tr>\n
FFO attributable to common shareholders plus assumed conversions (non-GAAP)(1)<\/sup><\/strong><\/td>\n$<\/td>\n278,507<\/td>\n\n\n\n$<\/td>\n279,509<\/td>\n\n\n\n$<\/td>\n612,123<\/td>\n\n\n\n$<\/td>\n691,522<\/td>\n\n<\/tr>\n
Per diluted share (non-GAAP)<\/td>\n$<\/td>\n1.46<\/td>\n\n\n\n$<\/td>\n1.46<\/td>\n\n\n\n$<\/td>\n3.20<\/td>\n\n\n\n$<\/td>\n3.62<\/td>\n\n<\/tr>\n
\n\n\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\n\n\n<\/tr>\n
After-tax net gain on sale of 220 CPS condominium units<\/td>\n$<\/td>\n(186,909<\/td>\n)<\/td>\n\n\n$<\/td>\n(109,035<\/td>\n)<\/td>\n\n\n$<\/td>\n(295,825<\/td>\n)<\/td>\n\n\n$<\/td>\n(328,910<\/td>\n)<\/td>\n<\/tr>\n
Severance accrual related to Hotel Pennsylvania closure, net of $3,145 of income tax benefit<\/td>\n6,101<\/td>\n\n\n\n\u2014<\/td>\n\n\n\n6,101<\/td>\n\n\n\n\u2014<\/td>\n\n<\/tr>\n
Our share of loss (income) from real estate fund investments<\/td>\n2,524<\/td>\n\n\n\n(1,455<\/td>\n)<\/td>\n\n\n64,771<\/td>\n\n\n\n22,207<\/td>\n\n<\/tr>\n
608 Fifth Avenue non-cash (lease liability extinguishment gain) impairment loss and related write-offs<\/td>\n\u2014<\/td>\n\n\n\n\u2014<\/td>\n\n\n\n(70,260<\/td>\n)<\/td>\n\n\n77,156<\/td>\n\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\n\n\u2014<\/td>\n\n\n\n13,369<\/td>\n\n\n\n\u2014<\/td>\n\n<\/tr>\n
Prepayment penalty in connection with redemption of $400 million 5.00% senior unsecured notes due January 2022<\/td>\n\u2014<\/td>\n\n\n\n\u2014<\/td>\n\n\n\n\u2014<\/td>\n\n\n\n22,540<\/td>\n\n<\/tr>\n
Other<\/td>\n381<\/td>\n\n\n\n(5,229<\/td>\n)<\/td>\n\n\n7,045<\/td>\n\n\n\n(2,931<\/td>\n)<\/td>\n<\/tr>\n
\n(177,903<\/td>\n)<\/td>\n\n\n(115,719<\/td>\n)<\/td>\n\n\n(274,799<\/td>\n)<\/td>\n\n\n(209,938<\/td>\n)<\/td>\n<\/tr>\n
Noncontrolling interests’ share of above adjustments<\/td>\n11,991<\/td>\n\n\n\n7,176<\/td>\n\n\n\n18,741<\/td>\n\n\n\n13,352<\/td>\n\n<\/tr>\n
Total of certain (income) expense items that impact FFO attributable to common shareholders plus assumed conversions, net<\/td>\n$<\/td>\n(165,912<\/td>\n)<\/td>\n\n\n$<\/td>\n(108,543<\/td>\n)<\/td>\n\n\n$<\/td>\n(256,058<\/td>\n)<\/td>\n\n\n$<\/td>\n(196,586<\/td>\n)<\/td>\n<\/tr>\n
\n\n\n\n\n\n\n\n\n\n<\/tr>\n
FFO attributable to common shareholders plus assumed conversions, as adjusted (non-GAAP)<\/td>\n$<\/td>\n112,595<\/td>\n\n\n\n$<\/td>\n170,966<\/td>\n\n\n\n$<\/td>\n356,065<\/td>\n\n\n\n$<\/td>\n494,936<\/td>\n\n<\/tr>\n
Per diluted share (non-GAAP)<\/td>\n$<\/td>\n0.59<\/td>\n\n\n\n$<\/td>\n0.89<\/td>\n\n\n\n$<\/td>\n1.86<\/td>\n\n\n\n$<\/td>\n2.59<\/td>\n\n<\/tr>\n<\/table>\n

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

(1)<\/strong>See page 13 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 nine months ended September 30, 2020 and 2019.<\/p>\n

<\/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