EDGAR 10-K Filing

Company CIK: 1040765
Filing Year: 2025
Filename: 1040765_10-K_2025_0000899689-25-000004.json

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ITEM 1. BUSINESS
ITEM 1. BUSINESS
Vornado is a fully-integrated REIT and conducts its business through, and substantially all of its interests in properties are held by, the Operating Partnership, a Delaware limited partnership. Accordingly, Vornado’s cash flow and ability to pay dividends to its shareholders are dependent upon the cash flow of the Operating Partnership and the ability of its direct and indirect subsidiaries to first satisfy their obligations to creditors. Vornado is the sole general partner of and owned approximately 91.4% of the common limited partnership interest in the Operating Partnership as of December 31, 2024.
We currently own all or portions of:
New York:
•56 Manhattan operating properties consisting of:
•20.1 million square feet of office space in 30 of the properties;
•2.4 million square feet of street retail space in 49 of the properties;
•1,330 units in two Manhattan residential properties;
•Multiple development sites, including 350 Park Avenue, Sunset Pier 94 Studios, the Hotel Pennsylvania site (PENN 15) and other PENN district sites;
•A 32.4% interest in Alexander’s, Inc. (“Alexander’s”) (NYSE: ALX), which owns five properties in the greater New York metropolitan area, including 731 Lexington Avenue, the 1.1 million square foot Bloomberg, L.P. headquarters building, and The Alexander, a 312-unit apartment tower in Queens;
•Signage throughout the PENN District and Times Square; and
•Building Maintenance Services LLC ("BMS"), a wholly owned subsidiary, which provides cleaning and security services for our buildings and third parties.
Other Real Estate and Investments:
•The 3.7 million square foot THE MART in Chicago;
•A 70% controlling interest in 555 California Street, a three-building office complex in San Francisco’s financial district aggregating 1.8 million square feet; and
•Other real estate and investments.
OBJECTIVES AND STRATEGY
Our business objective is to maximize Vornado shareholder value. We intend to achieve this objective by continuing to pursue our investment philosophy and to execute our operating strategies through:
•maintaining a superior team of operating and investment professionals and an entrepreneurial spirit;
•investing in properties in select markets, such as New York City, where we believe there is a high likelihood of capital appreciation;
•acquiring quality properties at a discount to replacement cost and where there is a significant potential for higher rents;
•developing and redeveloping properties to increase returns and maximize value; and
•investing in operating companies that have a significant real estate component.
We expect to finance our growth, acquisitions and investments using internally generated funds and proceeds from asset sales and by accessing the public and private capital markets. We may also offer Vornado common or preferred shares or Operating Partnership units in exchange for property and may repurchase or otherwise reacquire these securities in the future.
ACQUISITIONS
We completed the following acquisition transaction during 2024:
•$50 million B-Note investment at par; which is in default and secured by a Midtown Manhattan property.
DISPOSITIONS
We completed the following sale transactions during 2024:
•$88 million for the sale of our 49.9% interest in 50-70 West 93rd Street with net proceeds of $2 million after deducting our share of the existing $84 million mortgage loan; and
•$32 million net proceeds from the sale of two condominium units at 220 Central Park South (“220 CPS”).
FINANCINGS
We completed the following financing transactions during 2024:
•$1.1 billion mortgage loan amended and extended, and $125 million mezzanine loan amended and extended and subsequently repaid for $63 million on 280 Park Avenue (50% ownership);
•$915 million unsecured revolving credit facility maturing April 2029; replaced the $1.25 billion facility due to mature in April 2026;
•$863 million of interest rate swap arrangements;
•$625 million restructuring of 85 Tenth Avenue (49.9% ownership);
•$400 million refinancing of 640 Fifth Avenue (52% ownership);
•$400 million refinancing of 731 Lexington Avenue office condominium (32.4% ownership); and
•$75 million refinancing of 435 Seventh Avenue.
DEVELOPMENT / REDEVELOPMENT PROJECTS AND OPPORTUNITIES
PENN District
PENN 2
We are redeveloping PENN 2, a 1,795,000 square foot (as expanded) office building, located on the west side of Seventh Avenue between 31st and 33rd Street. The development cost of this project is estimated to be $750,000,000, of which $697,451,000 of cash has been expended as of December 31, 2024.
We are also making districtwide improvements within the PENN District. The development cost of these improvements is estimated to be $100,000,000, of which $70,919,000 of cash has been expended as of December 31, 2024.
Sunset Pier 94 Studios
On August 28, 2023, we, together with Hudson Pacific Properties and Blackstone Inc., formed a joint venture (“Pier 94 JV”) to develop a 266,000 square foot purpose-built studio campus in Manhattan. We own a 49.9% equity interest in the joint venture. The development cost of the project is estimated to be $350,000,000, which will be funded with $183,200,000 of construction financing ($29,782,000 drawn as of December 31, 2024) and $166,800,000 of equity contributions. Our share of equity contributions was funded by (i) our $40,000,000 Pier 94 leasehold interest contribution and (ii) $34,000,000 of cash contributions, which are net of an estimated $9,000,000 for our share of development fees and reimbursement for overhead costs incurred by us. As of December 31, 2024, we have fully funded our share of equity and cash contributions.
350 Park Avenue
On January 24, 2023, we and the Rudin family (“Rudin”) completed agreements with Citadel Enterprise Americas LLC (“Citadel”) and with an affiliate of Kenneth C. Griffin, Citadel’s Founder and CEO (“KG”), for a series of transactions relating to 350 Park Avenue and 40 East 52nd Street. In connection therewith, we entered into a joint venture with Rudin (the “Vornado/Rudin JV”) that purchased 39 East 51st Street for $40,000,000, funded on a 50/50 basis by Vornado and Rudin. 39 East 51st Street will be combined with 350 Park Avenue and 40 East 52nd Street to create a premier development site (the “350 Park Site”). From October 2024 to June 2030, an affiliate of KG has the option to either (i) acquire a 60% interest in a joint venture with the Vornado/Rudin JV (with Vornado having an effective 36% interest in the entity) to build a new 1,700,000 square foot office tower, valuing the 350 Park Site at $1.2 billion or (ii) purchase the 350 Park Site for $1.4 billion ($1.085 billion to Vornado). From October 2024 to September 2030, the Vornado/Rudin JV has the option to put the 350 Park Site to KG for $1.2 billion ($900,000,000 to Vornado).
We are also evaluating other development and redevelopment opportunities at certain of our properties in Manhattan including, in particular, the PENN District.
There can be no assurance that the above projects will be completed, completed on schedule or within budget.
ENVIRONMENTAL SUSTAINABILITY INITIATIVES
We have long believed a focus on environmental sustainability is responsible management of our business and important to our tenants, investors, employees and communities that we serve. It has been central to Vornado's business strategy for over 15 years. The Corporate Governance and Nominating Committee of Vornado's Board of Trustees is assigned with oversight of sustainability matters, which includes climate change risk. Environmental sustainability initiatives are carried out by a dedicated team of professionals that work directly with our business units.
Vornado is an industry leader in sustainability, owning and operating more than 26 million square feet of LEED (Leadership in Energy and Environmental Design) certified buildings, representing 100% of our certifiable office portfolio, with over 24 million square feet at LEED Gold or Platinum. In 2024, we:
•became the first major U.S. real estate owner and operator to achieve 100% LEED certification across our entire portfolio of certifiable buildings;
•received GRESB's five star rating and an assessment score of 92, placing us in the top 3% within Americas/Listed, and the “Green Star” distinction for the twelfth consecutive year;
•received the National Association of Real Estate Investment Trusts’ (“NAREIT”) inaugural “The Impact at Scale Award,” for implementing operational initiatives in the PENN district that advance corporate sustainability and deliver measurable impact; and
•were recognized as an EPA ENERGY STAR Partner of the Year with the distinction of having demonstrated nine years of sustained excellence.
We prioritize addressing climate change and in 2019 adopted a 10-year plan to make our buildings carbon neutral by 2030 (“Vision 2030”). Vision 2030 is a multi-faceted approach that prioritizes energy reduction, recovery, and renewable power. We rely on technology, as well as meaningful stakeholder collaboration with our tenants, our employees, and our communities, to achieve this plan. Our commitment to carbon neutrality and associated emissions reduction targets have been approved by the Science Based Targets Initiative as consistent with a 1.5°C climate scenario limit, the most ambitious goal of the Paris Agreement.
We consider sustainability in all aspects of our business, including the design, construction, retrofitting and ongoing maintenance and operations of our portfolio of buildings. We operate our buildings sustainably and efficiently by seeking to establish best practices in energy and water consumption, carbon reduction, resource and waste management and ecologically sensitive procurement. Our policies, from 100% green cleaning to procuring 100% renewable electricity certificates to energy efficiency, are implemented across our entire portfolio. We undertake significant outreach with our tenants, employees and investors regarding Vornado’s sustainability programs and strategies.
We gather data to measure progress against our goals, align our goals with our tenants, plan for our longer-term projects and engage with our stakeholders in meaningful ways. We use carbon accounting software, energy audits and models and building automation software to measure and track our portfolio-wide waste, water and energy reduction strategies, create roadmaps for each building to understand how to achieve carbon neutrality and provide accurate and actionable data for our measurement, verification and reporting requirements.
We are committed to transparent reporting of sustainability performance indicators and publish an annual Sustainability Report in accordance with the Global Reporting Initiative and aligned with the metrics codified by the Sustainability Accounting Standards Board. We also submit public reports to CDP, CSA (the S&P Global Corporate Sustainability Assessment) and EP100 (global initiative led by Climate Group). Further details on our environmental sustainability initiatives and strategy, including our Vision 2030 Roadmap, can be found in our 2023 Sustainability Report at (vno.com/sustainability). There can be no assurance that our Vision 2030 commitment will be achieved in the planned time frame. The Sustainability Report is not incorporated by reference and should not be considered part of this Annual Report on Form 10-K.
HUMAN CAPITAL MANAGEMENT
As of December 31, 2024, we had 2,996 employees, consisting of (i) 2,568 employees of Building Maintenance Services LLC, a wholly owned subsidiary, which provides cleaning, security, engineering and parking services primarily to our New York properties, (ii) 374 employees in our corporate office, and (iii) 54 employees of THE MART. The foregoing does not include employees of partially owned entities.
Human capital management is critical to our success and our employees are the foundation of our human capital.
Compensation, Benefits and Employee Wellbeing
To attract and retain the best-qualified talent and to help our employees stay healthy, balance their work and personal lives, and meet their financial and retirement goals, we offer competitive benefits including, but not limited to, market-competitive compensation, healthcare (medical, dental and vision coverage), a health savings account, 401(k) and employer match, dependent care flexible spending account, parental leave, adoption/surrogacy benefits, short-term and long-term disability insurance, life insurance, time off/paid holidays, tuition reimbursement, subsidized gym memberships, employee wellness programs and incentives, in-workplace vaccinations, commuter benefits, an employee assistance program and workplace flexibility.
HUMAN CAPITAL MANAGEMENT - CONTINUED
Talent Development
To foster talent and growth, we provide training and continuing education, promote career and personal development, and encourage innovation and engagement. To achieve our talent development goals, we provide tuition reimbursement for our employees’ continuing education and professional development, and the opportunity to participate in a variety of training and networking engagements.
Culture and Engagement
Our employees are critical to our success, and we believe creating a positive and inclusive culture is essential to attracting and retaining engaged employees. We seek to retain our employees by actively engaging with our workforce and we solicit their feedback through our divisional leaders and employee surveys. We use their feedback to create and continually enhance programs that support their needs.
Through our volunteer program, Vornado Volunteers, employees are granted one day of paid time off per calendar year to volunteer for a cause of their choice.
Health and Wellness
As a building owner and landlord to thousands of business tenants, we focus on maintaining and improving the health of our indoor environments, as well as communicating the value of our health and wellness programs with consistency and clarity to our stakeholders. We believe that consistent health programming and communications protocols not only mitigate health risks within our buildings, but they also create a responsible behavior framework for our employees, our tenants, and our visitors.
Labor Relations
BMS employs and manages janitorial and security staff who are members of 32BJ SEIU and engineering staff who are members of Local 94 of the International Union of Operating Engineers AFL-CIO. Through our active participation in the Realty Advisory Board on Labor Relations, we work collaboratively with both unions and consider our relations with our union employees to be very positive.
For additional information on human capital matters, please see our most recent Sustainability Report, available for download on our website at www.vno.com and in digital format at vno.com/sustainability. This report and other information on our website are not incorporated by reference into and do not form any part of this Annual Report on Form 10-K.
COMPETITION
We compete with a large number of real estate investors, property owners and developers, some of whom may be willing to accept lower returns on their investments. Principal factors of competition are rents charged, tenant concessions offered, attractiveness of location, the quality of the property and the breadth and the quality of services provided. Our success depends upon, among other factors, trends of the global, national, regional and local economies, the financial condition and operating results of current and prospective tenants and customers, availability and cost of capital, construction and renovation costs, taxes, governmental regulations, legislation, population and employment trends. See "Risk Factors" in Item 1A for additional information regarding these factors.
SEGMENT DATA
We operate in the following reportable segments: New York and Other. Financial information related to these reportable segments for the years ended December 31, 2024, 2023 and 2022 is set forth in Note 22 - Segment Information to our consolidated financial statements in this Annual Report on Form 10-K.
TENANTS ACCOUNTING FOR OVER 10% OF REVENUES
None of our tenants accounted for more than 10% of total revenues in any of the years ended December 31, 2024, 2023 and 2022.
CERTAIN ACTIVITIES
We do not base our acquisitions and investments on specific allocations by type of property. We have historically held our properties for long-term investment; however, it is possible that properties in our portfolio may be sold or otherwise disposed of when circumstances warrant. Further, we have not adopted a policy that limits the amount or percentage of assets which could be invested in a specific property or property type. Generally our activities are reviewed and may be modified from time to time by Vornado’s Board of Trustees without the vote of our shareholders or Operating Partnership unitholders.
PRINCIPAL EXECUTIVE OFFICES
Our principal executive offices are located at 888 Seventh Avenue, New York, New York 10019; telephone (212) 894-7000.
MATERIALS AVAILABLE ON OUR WEBSITE
Copies of our Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K and amendments to those reports, as well as Reports on Forms 3, 4 and 5 regarding officers, trustees and 10% beneficial owners, filed or furnished pursuant to Section 13(a), 15(d) or 16(a) of the Securities Exchange Act of 1934 are available free of charge through our website (www.vno.com) as soon as reasonably practicable after they are electronically filed with, or furnished to, the Securities and Exchange Commission. Also available on our website are copies of our Audit Committee Charter, Compensation Committee Charter, Corporate Governance and Nominating Committee Charter, Code of Business Conduct and Ethics, and Corporate Governance Guidelines. In the event of any changes to these charters or the code or guidelines, revised copies will also be made available on our website. Copies of these documents are also available directly from us free of charge. Our website also includes other financial and non-financial information, including certain non-GAAP financial measures, none of which is a part of this Annual Report on Form 10-K. Copies of our filings under the Securities Exchange Act of 1934 are also available free of charge from us, upon request.

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ITEM 1A. RISK FACTORS
ITEM 1A. RISK FACTORS
Material factors that may adversely affect our business, operations and financial condition are summarized below. We refer to the equity and debt securities of both Vornado and the Operating Partnership as our “securities” and the investors who own shares of Vornado or units of the Operating Partnership, or both, as our “equity holders.” The risks and uncertainties described herein may not be the only ones we face. Additional risks and uncertainties not presently known to us or that we currently believe to be immaterial may also adversely affect our business, operations and financial condition. See “Forward-Looking Statements” contained herein on page 6.
RISKS RELATED TO OUR BUSINESS AND OPERATIONS
We may be adversely affected by trends in office real estate, including work from home trends.
In 2024, approximately 76% of our net operating income (“NOI” a non-GAAP measure) is from our office properties. Work from home, flexible or hybrid work schedules, open workplaces, videoconferencing, and teleconferencing remain prevalent in certain situations following the COVID-19 pandemic. Changes in tenant space utilization, including from the continuation of work from home and flexible work arrangement policies, may continue to cause office tenants to reassess their long-term physical space needs, which could have an adverse effect on our business. Additionally, the increased use of artificial intelligence (“AI”) could result in changes in tenant space utilization, including the need to reduce or reconfigure space.
Further, as office tenants reevaluate their physical space needs and focus on attracting and retaining talent, many tenants have become more selective and are focused on leasing space in high-quality, modern and well-amenitized buildings near transit hubs. These factors have resulted in increased competition among landlords to attract tenants, significant landlord capital expenditures for a building to maintain Class A status and may negatively impact the value of older and less desirable office space. This could have an adverse effect on our financial condition and results of operations.
A significant portion of our properties is located in the New York metropolitan area and is affected by the economic cycles and risks inherent to this area.
In 2024, approximately 89% of our NOI is from properties located in the New York metropolitan area. We may continue to concentrate a significant portion of our future acquisitions, development and redevelopment in this area. Real estate markets are affected by economic downturns and we cannot predict how economic conditions will impact this market in either the short or long term. Declines in the economy and declines in the New York metropolitan area real estate market have impacted and could continue to impact our financial performance and the value of our properties. In addition to the factors affecting national economic conditions generally, the factors affecting economic conditions in this area include:
• financial performance and productivity of the media, advertising, professional services, financial, technology, retail, insurance and real estate industries;
• business layoffs or downsizing;
• any oversupply of, or reduced demand for, real estate;
• industry slowdowns;
• the effects of inflation;
• interest rate fluctuations;
• relocations of businesses;
• changing demographics;
• work from home and use of alternative work places;
• changes in the number of domestic and international tourists to our markets (including as a result of changes in the relative strengths of world currencies);
• changes in diplomatic and trade relationships, as well as potential tariffs;
• the fiscal health of New York State and New York City governments and local transit authorities;
• quality of life conditions;
• infrastructure quality;
• increased government regulation and costs of complying with such regulations; and
• changes in rates or limitations on the deductibility of state and local taxes.
It is impossible for us to predict the future effect of trends in the economic and investment climates of the geographic areas in which we concentrate, and more generally of the United States, or the real estate markets in these areas. Local, national or global economic downturns could negatively affect the value of our properties, our businesses and profitability.
We are subject to risks that affect the general and New York City retail environments.
In 2024, approximately 18% of our NOI is from Manhattan retail properties. These properties are affected by the general and New York City retail environments, including the level of consumer spending and consumer confidence, Manhattan tourism, office and residential occupancy rates, employer remote-working policies, the threat of terrorism or other criminal acts, increasing competition from online retailers and other retail centers, and the impact of technological change upon the retail environment generally. These factors could adversely affect the financial condition of our retail tenants, or result in the bankruptcy of such tenants, and the willingness of retailers to lease space in our retail locations, which could have an adverse effect on the value of our properties, our business and profitability.
Our performance and the value of an investment in us are subject to risks associated with our real estate assets and with the real estate industry.
The value of our real estate and the value of an investment in us fluctuates depending on conditions in the general economy and the real estate business. These conditions may also adversely impact our revenues and cash flows.
The factors that affect the value of our real estate investments include, among other things:
• global, national, regional and local economic conditions and geopolitical events;
• competition from other available space, including co-working space and sub-leases;
• local conditions such as an oversupply of space or a reduction in demand for real estate in the area;
• how well we manage our properties;
• the development and/or redevelopment of our properties;
• changes in market rental rates;
• trends in office real estate, including many tenants’ preferences for space in modern amenitized buildings which may require the landlord to incur significant capital expenditures;
• increased competition from online shopping and its impact on retail tenants and their demand for retail space;
• potential changes in trade relationships, new tariffs and other trade protection measures or barriers that may adversely affect retailers and retail store values;
• the timing and costs associated with property improvements and rentals;
• whether we are able to pass all or portions of any increases in operating costs through to tenants;
• changes in real estate taxes and other expenses;
• fluctuations in interest rates;
• the ability of state and local governments to operate within their budgets;
• whether tenants and users such as customers and shoppers consider a property attractive;
• changes in consumer preferences adversely affecting retailers and retail store values;
• changes in tenant space utilization;
• the financial condition of our tenants, including the extent of tenant bankruptcies or defaults;
• consequences of any armed conflict involving, or terrorist attacks against, the United States or individual acts of violence in public spaces;
• availability of financing on acceptable terms or at all;
• inflation or deflation;
• our ability to obtain adequate insurance;
• government regulation, including changes in fiscal policies, taxation, and zoning laws;
• potential liability and compliance costs associated with environmental or other laws or regulations;
• natural disasters;
• general competitive factors;
• climate change; and
• the impact of pandemics or outbreaks of other infectious diseases.
The rents or sales proceeds we receive and the occupancy levels at our properties may decline as a result of adverse changes in any of these factors. If rental revenues, sales proceeds and/or occupancy levels decline, we generally would expect to have less cash available for operating costs, to pay indebtedness and for distribution to equity holders. In addition, some of our major expenses, including mortgage payments, real estate taxes and maintenance costs generally do not decline when the related rents decline and maintenance costs can increase substantially in an inflationary environment. These factors may cause the value of our real estate assets to decline, which may result in non-cash impairment charges and the impact could be material.
Real estate is a competitive business and that competition may adversely impact us.
We compete with a large number of real estate investors, property owners and developers, some of whom may be willing to accept lower returns on their investments. Principal factors of competition are rents charged, tenant concessions offered, attractiveness of location, the quality of the property and the breadth and the quality of services provided. Substantially all of our properties face competition from similar properties in the same market, which may adversely impact the rents we can charge at those properties and our results of operations.
Our commercial office properties are located primarily in highly developed areas of the New York metropolitan area. Manhattan is the largest office market in the United States. The number of competitive office properties in the New York metropolitan area, which may be newer, more amenitized or better located than our properties, could have a material adverse effect on our ability to lease office space at our properties and on the effective rents we are able to charge.
We may be unable to renew leases, lease vacant space or relet space as leases expire on favorable terms.
When our tenants decide not to renew their leases upon their expiration, we may not be able to relet the space. Even if tenants do renew or we can relet the space, the terms of renewal or reletting, considering among other things, rent and concessions, the cost of improvements to the property and leasing commissions, may be on less economically favorable terms. In addition, changes in space utilization by our tenants may impact our ability to renew or relet space without the need to incur substantial costs in renovating or redesigning the internal configuration of the relevant property and/or space. If we are unable to promptly renew leases or relet the space on economically favorable terms, our cash flow and ability to service debt obligations and pay dividends and distributions to equity holders could be adversely affected.
Bankruptcy or insolvency of tenants may decrease our revenues, net income and available cash.
From time to time, some of our tenants have declared bankruptcy, and other tenants may declare bankruptcy, become insolvent or experience a material business downturn adversely affecting their ability to make timely rental payments in the future. If a tenant does not pay its rent, we may face delays enforcing our rights as landlord and may incur substantial legal and other costs. Even if we are able to enforce our rights, a tenant may not have recoverable assets. The bankruptcy or insolvency of a major tenant may delay our efforts to collect past-due balances under the relevant leases and could ultimately preclude collection of these amounts altogether. As a result, the bankruptcy or insolvency of, or nonpayment by, a major tenant could cause us to suffer lower revenues and operational difficulties, including leasing the remainder of the property, which could in turn result in decreased net income and funds available to pay our indebtedness or make distributions to equity holders.
Some of our potential losses may not be covered by insurance.
For our properties, we maintain general liability insurance with limits of $300,000,000 per occurrence and per property, of which $275,000,000, includes communicable disease coverage, and we maintain all risk property and rental value insurance with limits of $2.0 billion per occurrence, with sub-limits for certain perils such as flood and earthquake, excluding communicable disease coverage. Our California properties have earthquake insurance with coverage of $350,000,000 per occurrence and in the aggregate, subject to a deductible in the amount of 5% of the value of the affected property. We maintain coverage for certified terrorism acts with limits of $6.0 billion per occurrence and in the aggregate (as listed below), $1.2 billion for non-certified acts of terrorism, and $5.0 billion per occurrence and in the aggregate for terrorism involving nuclear, biological, chemical and radiological (“NBCR”) terrorism events, as defined by the Terrorism Risk Insurance Act of 2002, as amended to date and which has been extended through December 2027.
Penn Plaza Insurance Company, LLC (“PPIC”), our wholly owned consolidated subsidiary, acts as a re-insurer with respect to a portion of all risk property and rental value insurance and a portion of our earthquake insurance coverage, and as a direct insurer for coverage for acts of terrorism including NBCR acts. Coverage for acts of terrorism (excluding NBCR acts) is fully reinsured by third party insurance companies and the Federal government with no exposure to PPIC. For NBCR acts, PPIC is responsible for a deductible of $2,396,808 and 20% of the balance of a covered loss and the Federal government is responsible for the remaining portion of a covered loss. We are ultimately responsible for any loss incurred by PPIC.
Certain condominiums in which we own an interest (including the Farley Condominiums) maintain insurance policies with different per occurrence and aggregate limits than our policies described above.
We continue to monitor the state of the insurance market and the scope and costs of coverage for acts of terrorism and other events. However, we cannot anticipate what coverage will be available on commercially reasonable terms in the future. We are responsible for uninsured losses and for deductibles and losses in excess of our insurance coverage, which could adversely affect our business, results of operations and financial condition, the impact of which could be material.
Actual or threatened terrorist attacks or other criminal acts may adversely affect the value of our properties and our ability to generate cash flow.
We have significant investments in the New York City, Chicago and San Francisco metropolitan areas. In response to a terrorist attack, the perceived threat of terrorism, or other criminal acts, tenants in these areas may choose to relocate their businesses to less populated, lower-profile areas of the United States that may be perceived to be less likely targets of future terrorist activity or have lower rates of crime and fewer customers may choose to patronize businesses in these areas. This, in turn, would trigger a decrease in the demand for space in these areas, which could increase vacancies in our properties and force us to lease space on less favorable terms. Furthermore, we may experience increased costs in security, equipment and personnel. As a result, the value of our properties and the level of our revenues and cash flows could decline materially.
The effects of climate change could have a concentrated impact on the areas where we operate and could adversely impact our results.
Our investments are concentrated in the New York City, Chicago and San Francisco metropolitan areas. Physical climate change, and natural disasters, including earthquakes, storms, storm surges, tornados, floods and hurricanes, could cause significant damage to our properties and the surrounding environment or area. Potentially adverse consequences of climate change, including rising sea levels and increased temperature fluctuations, could similarly have an impact on our properties and the economies of the metropolitan areas in which we operate. Government efforts to combat climate change may impact the cost of operating our properties. Over time, these conditions could result in declining demand for office and retail space in our buildings or the inability of us to operate the buildings at all. Climate change may also have indirect effects on our business by increasing the cost of (or making unavailable) property insurance on terms we find acceptable, increasing the cost of energy at our properties and requiring us to expend funds as we seek to repair and protect our properties against such risks. The incurrence of these losses, costs or business interruptions may adversely affect our operating and financial results.
Our properties are located in urban areas, which means the vitality of our properties is reliant on sound transportation and utility infrastructure systems. If one of those systems is compromised in any way by an extreme weather event, such a compromise could have an adverse impact on our local economies and populations, as well as on our tenants’ ability to do business in our buildings.
Our properties are subject to transitional risks related to climate-related policy change.
De-carbonization of grid-supplied energy (as has been mandated by the Climate Leadership and Community Protection Act in New York State) could lead to increased energy costs and operating expenses for our buildings. Retrofitting our building systems to consume less energy could lead to increased capital costs. In addition, buildings which consume fossil fuel onsite may be subject to penalties in the future. Although these laws and regulations have not had any material adverse effects on our business to date, they could result in substantial costs, including compliance costs, increased energy costs, retrofit costs and construction costs. We cannot predict how future laws and regulations, or future interpretations of current laws and regulations, related to climate change will affect our business, results of operations and financial condition.
We may become subject to costs, taxes or penalties, or increases therein, associated with natural resource or energy usage, such as a “carbon tax” and by local legislation such as New York City’s Local Law 97, which sets limits on carbon emissions in our buildings and imposes penalties if we exceed those limits, and New York City’s Intro 2317, or the “gas ban” bill, which limits any onsite fossil fuel combustion in new construction and major renovations. These costs, taxes or penalties could increase our operating costs and decrease the cash available to pay our obligations or distribute to our equity owners.
Changes to tax laws could affect REITs generally, the trading of our shares and our results of operations, both positively and negatively, in ways that are difficult to anticipate.
The rules dealing with U.S. federal, state and local income taxation are constantly under review by persons involved in the legislative process and by the IRS and the Treasury Department. Changes to tax laws (which changes may have retroactive application) could adversely affect the taxation of REITs and their shareholders. We cannot predict whether, when, in what form, or with what effective dates, tax laws, regulations and rulings may be enacted, promulgated or decided, or technical corrections made, which could result in an increase in our, or our shareholders’, tax liability or require changes in the manner in which we operate in order to minimize increases in our tax liability. If such changes occur, we may be required to pay additional taxes on our assets or income and/or be subject to additional restrictions. These increased tax costs could, among other things, adversely affect the trading price for our common shares, our financial condition, our results of operations and the amount of cash available for the payment of dividends.
Significant inflation and increases in the inflation rate could adversely affect our business and financial results.
Elevated rates of inflation, both real and anticipated, may impact our business and results of operations. In a highly inflationary environment, we may be unable to raise rental rates at or above the rate of inflation, which could reduce our profit margins. In addition, our cost of labor and materials could increase, which could have an adverse impact on our business and financial results. Increased inflation could also adversely affect us by increasing costs of construction and renovation. While increases in most operating expenses at our properties can be passed on to our office and retail tenants, some tenants have fixed reimbursement charges and expenses at our residential properties may not be able to be passed on to residential tenants. Unreimbursed increased operating expenses may reduce cash flow available for payment of mortgage debt and interest and for distributions to shareholders.
We face risks associated with property acquisitions.
We have acquired in the past and intend to continue to pursue the acquisition of properties and portfolios of properties, including, but not limited to, large portfolios that would increase our size and could result in alterations to our capital structure. Furthermore, from time to time we have made, and in the future we may seek to make one or more, material acquisitions that we believe will maximize shareholder value. However, an announcement by us of one or more significant acquisitions could result in a quick and significant decline in the price of our securities. Our acquisition activities and their success are subject to the following risks:
•we may be unable to complete an acquisition of a property or portfolio even after entering into an acquisition agreement, making a non-refundable deposit and incurring certain other acquisition-related costs;
•we may be unable to obtain or assume financing for acquisitions on favorable terms or at all;
•increased interest rates will increase the cost of financing acquired properties, reducing the opportunities for attractive acquisitions;
•acquired properties may fail to perform as expected;
•the actual costs of repositioning, redeveloping or maintaining acquired properties may be greater than our estimates and may require significantly greater time and attention of management than anticipated;
•the acquisition agreement will likely contain conditions to closing, including completion of due diligence investigations to our satisfaction or other conditions that are not within our control, which may not be satisfied;
•acquired properties may be located in new markets where we may face risks associated with a lack of market knowledge or understanding of the local economy, lack of business relationships in the area, costs associated with opening a new regional office and unfamiliarity with local governmental and permitting procedures;
•we may acquire real estate through the acquisition of the ownership entity subjecting us to the risks of that entity and we may be exposed to the liabilities of properties or companies acquired, some of which we may not be aware of at the time of acquisition;
•we may face competition for acquisition opportunities from other well-capitalized investors, including publicly traded and privately held REITs, private real estate funds, domestic and foreign financial institutions, life insurance companies, sovereign wealth funds, pension trusts, partnerships and individual investors, which may cause an increase in the purchase price for a desired acquisition property or result in a competitor acquiring the desired property instead of us; and
•we may be unable to quickly and efficiently integrate new acquisitions, particularly acquisitions of portfolios of properties, into our existing operations, and this could have an adverse effect on our results of operations and financial condition.
Any delay or failure on our part to identify, negotiate, finance and consummate such acquisitions in a timely manner and on favorable terms, or operate acquired properties to meet our financial expectations, could impede our growth and have an adverse effect on us, including our financial condition, results of operations, cash flow and the market value of our securities. If we are unable to successfully acquire additional properties, our ability to grow our business could be adversely affected.
We are exposed to risks associated with property development, redevelopment and repositioning that could adversely affect us, including our financial condition and results of operations.
We are the owner of numerous development sites and continue to engage in redevelopment and repositioning activities with respect to our properties, and, accordingly, we are subject to certain risks, which could adversely affect us, including our financial condition and results of operations. These risks include, without limitation, (i) the availability and pricing of financing on favorable terms or at all; (ii) the availability and timely receipt of zoning and other regulatory approvals; (iii) cost overruns, especially in an inflationary environment, and untimely completion of construction (including risks beyond our control, such as weather or labor conditions, material shortages or supply chain delays); (iv) the potential for the fluctuation of occupancy rates and rents at redeveloped properties, which may result in our investment not being profitable; (v) start up, repositioning and redevelopment costs may be higher than anticipated; (vi) the potential that we may fail to recover expenses already incurred if we abandon development or redevelopment opportunities after we begin to explore them; (vii) the potential that we may expend funds on and devote management time to projects which we do not complete; (viii) the inability to complete leasing of a property on schedule or at all, resulting in an increase in carrying or redevelopment costs; (ix) the possibility that properties will be leased at below expected rental rates and (x) to the extent the redevelopment activities are conducted in partnership with third parties, the possibility of disputes with our joint venture
development partners and the potential that we miss certain project milestone deadlines. These risks could result in substantial unanticipated delays or expenses, prevent the initiation or the completion of redevelopment activities or reduce the ultimate rents achieved on new developments. These outcomes could have an adverse effect on our financial condition, results of operations, cash flow, the market value of our common shares and ability to satisfy our principal and interest obligations and to make distributions to our shareholders.
It may be difficult to sell real estate on a timely basis, which may limit our flexibility.
Real estate investments are relatively illiquid. Consequently, we may have limited ability to dispose of assets in our portfolio promptly in response to changes in economic or other conditions which could have an adverse effect on our sources of working capital and our ability to satisfy our debt obligations.
There may be limitations on our ability to sell or reduce the indebtedness of specific properties. In addition, when we dispose of or sell assets, we may not be able to reinvest the sales proceeds and earn similar returns.
As part of an acquisition of a property, or a portfolio of properties, we may agree, and in the past have agreed, not to dispose of the acquired properties or reduce the mortgage indebtedness for a long-term period, unless we pay certain of the resulting tax costs of the seller. These agreements could result in us holding on to properties that we would otherwise sell and not pay down or refinance the debt associated with those properties. In addition, when we dispose of or sell assets, we may not be able to reinvest the sales proceeds and earn returns similar to those generated by the assets that were sold.
From time to time we have made, and in the future we may seek to make investments in companies over which we do not have sole control. Some of these companies operate in industries with different risks than investing and operating real estate.
From time to time we have made, and in the future we may seek to make, investments in companies that we may not control. Although these businesses generally have a significant real estate component, some of them operate in businesses that are different from investing and operating real estate. Consequently, we are subject to operating and financial risks of those industries and to the risks associated with lack of control, such as having differing objectives than our partners or the entities in which we invest, or becoming involved in disputes, or competing directly or indirectly with these partners or entities. In addition, we rely on the internal controls and financial reporting controls of these entities and their failure to maintain effectiveness or comply with applicable standards may adversely affect us.
We are subject to risks involved in real estate activity through joint ventures.
We currently own properties through joint ventures with other persons and entities and may in the future acquire or own properties through joint ventures and other co-investment vehicles when we believe circumstances warrant the use of such structures. Joint venture investments involve risk, including: the possibility that our partners might refuse to make capital contributions when due and therefore we may be forced to make contributions to maintain the value of the property; that we may be responsible to our partners for indemnifiable losses; that our partners might at any time have business or economic goals that are inconsistent with ours; that third parties may be hesitant or refuse to transact with the joint venture due to the identity of our partners; and that our partners may be in a position to take action or withhold consent contrary to our recommendations, instructions or requests. For certain of our joint venture arrangements, we and our respective joint venture partners have rights including the ability to trigger a buy-sell, put right or forced sale arrangement, which could cause us to sell our interest, or acquire our partner’s interest, or to sell the underlying asset, at a time when we otherwise would not have initiated such a transaction, without our consent or on unfavorable terms. In some instances, joint venture partners may have competing interests in our markets that could create conflicts of interest. These conflicts may include compliance with the REIT requirements, and our REIT status could be jeopardized if any of our joint ventures do not operate in compliance with REIT requirements. To the extent our partners do not meet their obligations to us or our joint ventures, or they take action inconsistent with the interests of the joint venture, we may be adversely affected.
We are exposed to risks related to our properties that are subject to ground leases arrangements which could adversely affect our results of operations.
We are the lessee under long-term ground lease arrangements at certain of our properties. Unless we purchase a fee interest in the underlying land or extend the terms of these leases prior to expiration, we will no longer operate these properties upon expiration of the leases, which could adversely affect our financial condition and results of operations. Furthermore, rent payments under such leasehold interests are periodically adjusted pursuant to the respective contractual arrangements, including the currently ongoing PENN 1 June 2023 rent reset process. These rent resets may result in materially higher rents that could adversely affect our financial condition and results of operation. Additionally, due to the greater risk associated with a loan secured by a leasehold interest than a loan secured by a fee interest, we face risks related to the availability and pricing of financing on favorable terms or at all for such ground leasehold interests.
RISKS RELATED TO OUR INDEBTEDNESS AND ACCESS TO CAPITAL
Significantly tighter capital markets and economic conditions have affected and may continue to materially affect our liquidity, financial condition and results of operations as well as the value of an investment in our debt and equity securities.
There are many factors that can affect the value of our debt and equity securities, including the state of the capital markets and the economy. Demand for office and retail space typically declines nationwide due to an economic downturn, bankruptcies, downsizing, layoffs and cost cutting. Government action or inaction may adversely affect the state of the capital markets. The cost and availability of credit may be adversely affected by illiquid credit markets and wider credit spreads, which may adversely affect our liquidity and financial condition, including our results of operations, and the liquidity and financial condition of our tenants. Our inability or the inability of our tenants to timely refinance maturing liabilities, access the capital markets and obtain reasonable pricing to meet liquidity needs may materially affect our financial condition and results of operations and the value of our securities.
We have outstanding debt, and its cost may continue to increase and refinancing may not be available on acceptable terms and could affect our future operations.
As of December 31, 2024, our consolidated mortgages and unsecured indebtedness, excluding related premium, discount and deferred financing costs, totaled $8.3 billion. We rely on both secured and unsecured, variable rate and fixed rate debt to finance acquisitions and development activities and for working capital. We are subject to the risks normally associated with debt financing, including the risk that our cash flow from operations will be insufficient to meet our required debt service. Our debt service costs generally will not be reduced if conditions in the market or at our properties, such as the entry of new competitors or the loss of major tenants, cause a reduction in the income from our properties. Should such events occur, our operations may be adversely affected. If a property is mortgaged to secure payment of indebtedness and income from such property is insufficient to pay that indebtedness, the property could be foreclosed upon by the mortgagee resulting in our loss of the property.
If we are unable to obtain debt financing or refinance existing indebtedness upon maturity, our financial condition and results of operations would likely be adversely affected. In addition, the volatility in the interest rate environment has led to an increase in interest rates on our variable rate debt, including on new hedging instruments, and an increase in the cost of refinancing our existing debt and entering into new debt, all of which have reduced, and could continue to reduce, our operating cash flows. While certain of our debt is fixed by interest rate swap arrangements, the arrangements typically expire earlier than the mortgage loan maturity, resulting in future exposure to rising interest rates, which could further reduce our available cash. If the cost or amount of our indebtedness continues to increase or we cannot refinance our debt in sufficient amounts or on acceptable terms, we are at risk of credit rating downgrades and default on our obligations that could adversely affect our financial condition and results of operations.
We may not be able to obtain capital to make investments.
We depend primarily on external financing to fund the growth of our business. This is because one of the requirements of the Internal Revenue Code of 1986, as amended, for a REIT is that it distributes 90% of its taxable income, excluding net capital gains, to its shareholders. This, in turn, requires the Operating Partnership to make distributions to its unitholders. There is a separate requirement to distribute net capital gains or pay a corporate level tax in lieu thereof. Our access to debt or equity financing depends on the willingness of third parties to lend or make equity investments and on conditions in the capital markets generally. Although we believe that we will be able to finance any investments we may wish to make in the foreseeable future, there can be no assurance that new financing will be available or available on acceptable terms. For information about our available sources of funds, see “Management’s Discussion and Analysis of Financial Condition and Results of Operations - Liquidity and Capital Resources” and the notes to the consolidated financial statements in this Annual Report on Form 10-K.
The hedge instruments we may use to manage our exposure to interest rate volatility involve risks.
The interest rate hedge instruments we may use to manage some of our exposure to interest rate volatility involve risks, including the risk that counterparties may fail to perform under these arrangements. If interest rates continue to fall, these arrangements may cause us to pay higher interest on our debt obligations than would otherwise be the case. In addition, the use of such instruments may generate income that may not be treated as qualifying REIT income for purposes of the 75% gross income test or 95% gross income test. Furthermore, there can be no assurance that our hedging arrangements will qualify as “highly effective” cash flow hedges under applicable accounting standards. If our hedges do not qualify as “highly effective,” the changes in the fair value of these instruments would be reflected in our results of operations and could adversely impact our earnings.
Covenants in our debt instruments could adversely affect our financial condition and our acquisitions and development activities.
Our unsecured indebtedness and debt that we may obtain in the future may contain customary restrictions, requirements and other limitations on our ability to incur indebtedness, including covenants that limit our ability to incur debt based upon the levels of certain ratios including total debt to total assets, secured debt to total assets, EBITDA to interest expense, and fixed charges, and that require us to maintain a certain ratio of unencumbered assets to unsecured debt. Our ability to borrow is subject to compliance with these and other covenants. In addition, failure to comply with our covenants could cause a default under the applicable debt instrument, and we may then be required to repay such debt with capital from such other sources or give possession of a secured property to the lender. Under those circumstances, other sources of capital may not be available to us or may be available only on unattractive terms. Further, depending on market conditions at the time of any refinancing, the covenants included as part of the terms of such refinancing may be more restrictive than the existing indebtedness.
In addition, our debt instruments contain customary covenants requiring us to maintain insurance. Although we believe that we have adequate insurance coverage for purposes of these agreements, we may not be able to obtain an equivalent amount of coverage at reasonable costs in the future. Further, if lenders insist on greater coverage than we are able to obtain it could result in acceleration of repayment of such debt instruments and adversely affect our ability to finance or refinance our properties and expand our portfolio.
A downgrade in our credit ratings could materially and adversely affect our business and financial condition.
Our credit rating and the credit ratings assigned to our debt securities and our preferred shares could change in the future based upon, among other things, our results of operations and financial condition. Our ratings are subject to ongoing evaluation by credit rating agencies, and any rating could be changed or withdrawn by a rating agency in the future if, in its judgment, circumstances warrant such action. Moreover, these credit ratings are not recommendations to buy, sell or hold our common shares or any other securities. If any of the credit rating agencies that have rated our securities downgrades or lowers its credit rating, or if any credit rating agency indicates that it has placed any such rating on a “watch list” for a possible downgrading or lowering, or otherwise indicates that its outlook for that rating is negative, such action could have a material adverse effect on our costs and availability of funding. For instance, if we fail to maintain the credit ratings currently assigned to our senior debt, the interest rates payable on outstanding debt under our unsecured term loan and revolving credit facilities would increase and we may be required to post additional collateral under certain of our existing loan agreements. Furthermore, any future lowering of our credit ratings or outlook would likely make it more difficult and/or more expensive for us to obtain additional debt financing. Our failure to maintain or improve our credit ratings could in turn have a material adverse effect on our financial condition, results of operations, cash flows, the trading/redemption price of our securities, and our ability to satisfy our debt service obligations and to pay dividends and distributions to our equity holders.
RISKS RELATED TO OUR ORGANIZATION AND STRUCTURE
We depend on dividends and distributions from our direct and indirect subsidiaries. The creditors and preferred equity holders of these subsidiaries are entitled to amounts payable to them by the subsidiaries before the subsidiaries may pay any dividends or distributions to us.
Substantially all of Vornado’s assets are held through the Operating Partnership which holds substantially all of its properties and assets through subsidiaries. The Operating Partnership’s cash flow is dependent on cash distributions to it by its subsidiaries, and in turn, substantially all of Vornado’s cash flow is dependent on cash distributions to it by the Operating Partnership. The creditors of each of Vornado’s direct and indirect subsidiaries are entitled to payment of that subsidiary’s obligations to them, when due and payable, before distributions may be made by that subsidiary to its equity holders. Thus, the Operating Partnership’s ability to make distributions to its equity holders depends on its subsidiaries’ ability first to satisfy their obligations to their creditors and then to make distributions to the Operating Partnership. Consequently, Vornado’s ability to pay dividends to its holders of common and preferred shares depends on the Operating Partnership’s ability first to satisfy its obligations to its creditors and make distributions to holders of its preferred units and then to make distributions to Vornado.
Furthermore, the holders of preferred units of the Operating Partnership are entitled to receive preferred distributions before payment of distributions to the Operating Partnership’s equity holders, including Vornado. Thus, Vornado’s ability to pay cash dividends to its equity holders and satisfy its debt obligations depends on the Operating Partnership’s ability first to satisfy its obligations to its creditors and make distributions to holders of its preferred units and then to its equity holders, including Vornado. As of December 31, 2024, there were six series of preferred units of the Operating Partnership not held by Vornado with a total liquidation value of $53,219,000.
In addition, Vornado’s participation in any distribution of the assets of any of its direct or indirect subsidiaries upon the liquidation, reorganization or insolvency is only after the claims of the creditors, including trade creditors and preferred equity holders, are satisfied.
Vornado’s Amended and Restated Declaration of Trust (the “declaration of trust”) sets limits on the ownership of its shares.
Generally, for Vornado to maintain its qualification as a REIT under the Internal Revenue Code, not more than 50% in value of the outstanding shares of beneficial interest of Vornado may be owned, directly or indirectly, by five or fewer individuals at any time during the last half of Vornado’s taxable year. The Internal Revenue Code defines “individuals” for purposes of the requirement described in the preceding sentence to include some types of entities. Under Vornado’s declaration of trust, as amended, no person may own more than 6.7% of the outstanding common shares of any class, or 9.9% of the outstanding preferred shares of any class, with some exceptions for persons who held common shares in excess of the 6.7% limit before Vornado adopted the limit and other persons approved by Vornado’s Board of Trustees. In addition, our declaration of trust includes restrictions on ownership of our common shares and preferred shares to preserve our status as a "domestically controlled qualified investment entity" within the meaning of Section 897 (h)(4)(B) of the Internal Revenue Code of 1986, as amended. These restrictions on transferability and ownership may delay, deter or prevent a change in control of Vornado or other transaction that might involve a premium price or otherwise be in the best interest of equity holders.
The Maryland General Corporation Law (the “MGCL”) contains provisions that may reduce the likelihood of certain takeover transactions.
The MGCL imposes conditions and restrictions on certain “business combinations” (including, among other transactions, a merger, consolidation, share exchange, or, in certain circumstances, an asset transfer or issuance of equity securities) between a Maryland REIT and certain persons who beneficially own at least 10% of the corporation’s stock (an “interested shareholder”). Unless approved in advance by the board of trustees of the trust, or otherwise exempted by the statute, such a business combination is prohibited for a period of five years after the most recent date on which the interested shareholder became an interested shareholder. After such five-year period, a business combination with an interested shareholder must be: (a) recommended by the board of trustees of the trust, and (b) approved by the affirmative vote of at least (i) 80% of the trust’s outstanding shares entitled to vote and (ii) two-thirds of the trust’s outstanding shares entitled to vote which are not held by the interested shareholder with whom the business combination is to be effected, unless, among other things, the trust’s common shareholders receive a “fair price” (as defined by the statute) for their shares and the consideration is received in cash or in the same form as previously paid by the interested shareholder for his or her shares.
In approving a transaction, Vornado’s Board of Trustees may provide that its approval is subject to compliance, at or after the time of approval, with any terms and conditions determined by the Board of Trustees. Vornado’s Board of Trustees has adopted a resolution exempting any business combination between Vornado and any trustee or officer of Vornado or its affiliates. As a result, any trustee or officer of Vornado or its affiliates may be able to enter into business combinations with Vornado that may not be in the best interest of our equity holders. With respect to business combinations with other persons, the business combination provisions of the MGCL may have the effect of delaying, deferring or preventing a change in control of Vornado or other transaction that might involve a premium price or otherwise be in the best interest of our equity holders. The business combination statute may discourage others from trying to acquire control of Vornado and increase the difficulty of consummating any offer.
Title 3, Subtitle 8 of the MGCL permits our Board of Trustees, without shareholder approval and regardless of what is currently provided in our declaration of trust or bylaws, to implement certain takeover defenses, including adopting a classified board or increasing the vote required to remove a trustee. Such takeover defenses may have the effect of inhibiting a third party from making an acquisition proposal for us or of delaying, deferring or preventing a change in control of us under the circumstances that otherwise could provide our common shareholders with the opportunity to realize a premium over the then current market price.
Vornado may issue additional shares in a manner that could adversely affect the likelihood of certain takeover transactions.
Vornado’s declaration of trust authorizes the Board of Trustees to:
•cause Vornado to issue additional authorized but unissued common shares or preferred shares;
•classify or reclassify, in one or more series, any unissued preferred shares;
•set the preferences, rights and other terms of any classified or reclassified shares that Vornado issues; and
•increase, without shareholder approval, the number of shares of beneficial interest that Vornado may issue.
Vornado’s Board of Trustees could establish a series of preferred shares whose terms could delay, deter or prevent a change in control of Vornado, and therefore of the Operating Partnership, or other transaction that might involve a premium price or otherwise be in the best interest of our equity holders, although Vornado’s Board of Trustees does not now intend to establish a series of preferred shares of this kind. Vornado’s declaration of trust and bylaws contain other provisions that may delay, deter or prevent a change in control of Vornado or other transaction that might involve a premium price or otherwise be in the best interest of our equity holders.
We may change our policies without obtaining the approval of our equity holders.
Our operating and financial policies, including our policies with respect to acquisitions of real estate or other companies, growth, operations, indebtedness, capitalization, dividends and distributions, are exclusively determined by Vornado’s Board of Trustees. Accordingly, our equity holders do not control these policies.
Steven Roth and Interstate Properties may exercise substantial influence over us. They and some of Vornado’s other trustees and officers have interests or positions in other entities that may compete with us.
As of December 31, 2024, Interstate Properties, a New Jersey general partnership, and its partners beneficially owned an aggregate of approximately 7.1% of the common shares of beneficial interest of Vornado and 26.0% of the common stock of Alexander’s, which is described below. Steven Roth, David Mandelbaum and Russell B. Wight, Jr. are the three partners of Interstate Properties. Mr. Roth is the Chairman of the Board of Trustees and Chief Executive Officer of Vornado, the managing general partner of Interstate Properties, and the Chairman of the Board of Directors and Chief Executive Officer of Alexander’s. Messrs. Mandelbaum and Wight are Trustees of Vornado and Directors of Alexander’s.
Because of these overlapping interests, Mr. Roth and Interstate Properties and its partners may have substantial influence over Vornado, and therefore over the Operating Partnership. In addition, certain decisions concerning our operations or financial structure may present conflicts of interest among Messrs. Roth, Mandelbaum and Wight and Interstate Properties and our other equity holders. In addition, Mr. Roth, Interstate Properties and its partners, and Alexander’s currently and may in the future engage in a wide variety of activities in the real estate business which may result in conflicts of interest with respect to matters affecting us, such as which of these entities or persons, if any, may take advantage of potential business opportunities, the business focus of these entities, the types of properties and geographic locations in which these entities make investments, potential competition between business activities conducted, or sought to be conducted, competition for properties and tenants, possible corporate transactions such as acquisitions and other strategic decisions affecting the future of these entities.
We manage and lease the real estate assets of Interstate Properties pursuant to a management agreement for which we receive an annual fee equal to 4% of annual base rent and percentage rent. See Note 21 - Related Party Transactions to our consolidated financial statements in this Annual Report on Form 10-K for additional information.
There may be conflicts of interest between Alexander’s and us.
As of December 31, 2024, we owned 32.4% of the outstanding common stock of Alexander’s. Alexander’s is a REIT that has five properties, which are located in the greater New York metropolitan area. In addition to the 2.3% that they indirectly own through Vornado, Interstate Properties, which is described above, and its partners owned 26.0% of the outstanding common stock of Alexander’s as of December 31, 2024. Mr. Roth is the Chairman of the Board of Trustees and Chief Executive Officer of Vornado, the managing general partner of Interstate Properties, and the Chairman of the Board of Directors and Chief Executive Officer of Alexander’s. Messrs. Mandelbaum and Wight are Trustees of Vornado and Directors of Alexander’s and general partners of Interstate Properties. Ms. Mandakini Puri is a Trustee of Vornado and Director of Alexander’s.
We manage, develop and lease Alexander’s properties under management, development and leasing agreements under which we receive annual fees from Alexander’s. These agreements are described in Note 4 - Investments in Partially Owned Entities to our consolidated financial statements in this Annual Report on Form 10-K.
RISKS RELATED TO OUR COMMON SHARES AND OPERATING PARTNERSHIP CLASS A UNITS
The trading price of Vornado’s common shares has been volatile and may continue to fluctuate.
The trading price of Vornado’s common shares has been volatile and may continue to fluctuate widely as a result of several factors, many of which are outside our control. In addition, the stock market is subject to fluctuations in the equity prices and trading volumes that affect the market prices of the shares of many companies. These broad market fluctuations have in the past and may in the future adversely affect the market price of Vornado’s common shares and the redemption price of the Operating Partnership’s Class A units. These factors include:
•our financial condition and performance;
•the financial condition of our tenants, including the extent of tenant bankruptcies or defaults;
•actual or anticipated quarterly fluctuations in our operating results and financial condition;
•our dividend policy;
•the reputation of REITs and real estate investments generally and the attractiveness of REIT equity securities in comparison to other equity securities, including securities issued by other real estate companies, and fixed income securities;
•uncertainty and volatility in the equity and credit markets;
•fluctuations in interest rates;
•changes in revenue or earnings estimates or publication of research reports and recommendations by financial analysts or actions taken by rating agencies with respect to our securities or those of other REITs;
•failure to meet analysts’ revenue or earnings estimates;
•speculation in the press or investment community;
•strategic actions by us or our competitors, such as acquisitions or restructurings;
•the extent of institutional investor interest in us;
•the extent of short-selling of Vornado common shares and the shares of our competitors;
•fluctuations in the stock price and operating results of our competitors;
•share repurchase plans;
•general financial and economic market conditions and, in particular, developments related to market conditions for office REITs and other real estate related companies and the New York City real estate market;
•inflation;
•local, domestic and international economic factors unrelated to our performance (including the macro-economic impact of geopolitical conflicts);
•fiscal policies or inaction at the U.S. federal government level that may lead to federal government shutdowns or negative impacts on the U.S. economy;
•changes in tax laws and rules; and
•all other risk factors addressed elsewhere in this Annual Report on Form 10-K.
A significant decline in Vornado’s stock price could result in substantial losses for our equity holders.
Vornado has many shares available for future sale, which could hurt the market price of its shares and the redemption price of the Operating Partnership’s units.
The interests of equity holders could be diluted if we issue additional equity securities. As of December 31, 2024, Vornado had authorized but unissued 59,153,420 common shares of beneficial interest, $0.04 par value, and 58,390,820 preferred shares of beneficial interest, no par value; of which 21,273,952 common shares are reserved for issuance upon redemption of Class A Operating Partnership units, convertible securities and employee stock options and 11,200,000 preferred shares are reserved for issuance upon redemption of preferred Operating Partnership units. The reserved common shares exclude the potential conversion of appreciation-only long-term incentive plan units (“AO LTIP Units”) and performance AO LTIP Units which may be converted into Class A Operating Partnership Units if a specified price is met. Any shares not reserved may be issued from time to time in public or private offerings or in connection with acquisitions. In addition, common and preferred shares reserved may be sold upon issuance in the public market after registration under the Securities Act or under Rule 144 under the Securities Act or other available exemptions from registration. We cannot predict the effect that future sales of Vornado’s common and preferred shares or Operating Partnership Class A and preferred units will have on the market prices of our securities.
In addition, under Maryland law, Vornado’s Board of Trustees has the authority to increase the number of authorized shares without shareholder approval.
Loss of our key personnel could harm our operations and adversely affect the value of our common shares and Operating Partnership Class A units.
We are dependent on the efforts of Steven Roth, the Chairman of the Board of Trustees and Chief Executive Officer of Vornado. While we believe that we could find a replacement for him and other key personnel, the loss of their services could harm our operations and adversely affect the value of our securities.
RISKS RELATED TO REGULATORY COMPLIANCE
Vornado may fail to qualify or remain qualified as a REIT and may be required to pay federal income taxes at corporate rates, which could adversely impact the value of our common shares.
Although we believe that Vornado will remain organized and will continue to operate so as to qualify as a REIT for federal income tax purposes, Vornado may fail to remain so qualified. Qualifications are governed by highly technical and complex provisions of the Internal Revenue Code for which there are only limited judicial or administrative interpretations and depend on various facts and circumstances that are not entirely within our control. In addition, legislation, new regulations, administrative interpretations or court decisions may significantly change the relevant tax laws and/or the federal income tax consequences of qualifying as a REIT. If, with respect to any taxable year, Vornado fails to maintain its qualification as a REIT and does not qualify under statutory relief provisions, Vornado could not deduct distributions to shareholders in computing our taxable income and would have to pay federal income tax on its taxable income at regular corporate rates. The federal income tax payable would include any applicable alternative minimum tax. If Vornado had to pay federal income tax, the amount of money available to distribute to equity holders and pay its indebtedness would be reduced for the year or years involved, and Vornado would not be required to make distributions to shareholders in that taxable year and in future years until it was able to qualify as a REIT and did so. In addition, Vornado would also be disqualified from treatment as a REIT for the four taxable years following the year during which qualification was lost, unless Vornado were entitled to relief under the relevant statutory provisions. Our failure to qualify as a REIT could impact our ability to expand our business and raise capital and adversely affect the price of our common shares.
We may face possible adverse federal tax audits and changes in federal tax laws, which may result in an increase in our tax liability.
In the normal course of business, certain entities through which we own real estate either have undergone or may undergo tax audits. Although we believe that we have substantial arguments in favor of our positions, in some instances there is no controlling precedent or interpretive guidance. There can be no assurance that audits will not occur with increased frequency or that the ultimate result of such audits will not have a material adverse effect on our results of operations.
At any time, the U.S. federal income tax laws governing REITs or the administrative interpretations of those laws may be amended. We cannot predict if or when any new U.S. federal income tax law, regulation, or administrative interpretation, or any amendment to any existing U.S. federal income tax law, Treasury regulation or administrative interpretation, will be adopted, promulgated or become effective and any such law, regulation, or interpretation may take effect retroactively. Vornado, its taxable REIT subsidiaries, and our security holders could be adversely affected by any such change in, or any new, U.S. federal income tax law, Treasury regulation or administrative interpretation.
We may face possible adverse state and local tax audits and changes in state and local tax law.
Because Vornado is organized and qualifies as a REIT, it is generally not subject to federal income taxes, but we are subject to certain state and local taxes. In the normal course of business, certain entities through which we own real estate either have undergone, or are currently undergoing, tax audits. Although we believe that we have substantial arguments in favor of our positions in the ongoing audits, in some instances there is no controlling precedent or interpretive guidance on the specific point at issue. There can be no assurance that audits will not occur with increased frequency or that the ultimate result of such audits will not have a material adverse effect on our results of operations.
From time to time changes in state and local tax laws or regulations are enacted, which may result in an increase in our tax liability. A shortfall in tax revenues for states and municipalities in which we operate may lead to an increase in the frequency and size of such changes including changes in laws, regulations and administration of property and transfer taxes. If such changes occur, we may be required to pay additional taxes on our assets or income. These increased tax costs could adversely affect our financial condition and results of operations and the amount of cash available for the payment of dividends and distributions to our security holders.
Compliance or failure to comply with the Americans with Disabilities Act (the "ADA") or other safety regulations and requirements could result in substantial costs.
The ADA generally requires that public buildings, including our properties, meet certain Federal requirements related to access and use by disabled persons. Noncompliance could result in the imposition of fines by the Federal government or the award of damages to private litigants and/or legal fees to their counsel. From time to time persons have asserted claims against us with respect to some of our properties under the ADA, but to date such claims have not resulted in any material expense or liability. If, under the ADA, we are required to make substantial alterations and capital expenditures in one or more of our properties, including the removal of access barriers, it could adversely affect our financial condition and results of operations, as well as the amount of cash available for distribution to equity holders.
Our properties are subject to various federal, state and local regulatory requirements, such as state and local fire and life safety requirements. If we fail to comply with these requirements, we could incur fines or private damage awards. We do not know whether existing requirements will change or whether compliance with future requirements will require significant unanticipated expenditures that will affect our cash flow and results of operations.
We may incur significant costs to comply with environmental laws and environmental contamination may impair our ability to lease and/or sell real estate.
Our operations and properties are subject to various federal, state and local laws and regulations concerning the protection of the environment, including air and water quality, hazardous or toxic substances and health and safety. Under some environmental laws, a current or previous owner or operator of real estate may be required to investigate and clean up hazardous or toxic substances released at a property. The owner or operator may also be held liable to a governmental entity or to third parties for property damage or personal injuries and for investigation and clean-up costs incurred by those parties because of the contamination. These laws often impose liability without regard to whether the owner or operator knew of the release of the substances or caused the release. The presence of contamination or the failure to remediate contamination may also impair our ability to sell or lease real estate or to borrow using the real estate as collateral. Other laws and regulations govern indoor and outdoor air quality including those that can require the abatement or removal of asbestos-containing materials in the event of damage, demolition, renovation or remodeling and govern emissions of and exposure to asbestos fibers in the air. The maintenance and removal of lead paint and certain electrical equipment containing polychlorinated biphenyls (PCBs) are also regulated by federal and state laws. We are also subject to risks associated with human exposure to chemical or biological contaminants such as molds, pollens, viruses and bacteria which, above certain levels, can be alleged to be connected to allergic or other health effects and symptoms in susceptible individuals. Our predecessor companies may be subject to similar liabilities for activities of those companies in the past. We could incur fines for environmental compliance and be held liable for the costs of remedial action with respect to the foregoing regulated substances or related claims arising out of environmental contamination or human exposure to contamination at or from our properties.
Each of our properties has been subject to varying degrees of environmental assessment. To date, these environmental assessments have not revealed any environmental condition material to our business. However, identification of new compliance concerns or undiscovered areas of contamination, changes in the extent or known scope of contamination, human exposure to contamination or changes in clean-up or compliance requirements could result in significant costs to us.
RISKS RELATED TO TECHNOLOGY, CYBERSECURITY AND DATA PROTECTION
The occurrence of cyber incidents, or a deficiency in our cyber security, as well as other disruptions to our IT networks and related systems, could negatively impact our business by causing a disruption to our operations, a compromise or corruption of our confidential information, and/or damage to our business relationships or reputation, all of which could negatively impact our financial results.
Our IT networks and related systems are essential to the operation of our business and our ability to perform day-to-day operations (including managing our building systems) and, in some cases, may be critical to the operations of certain of our tenants. We face risks associated with security breaches, whether through cyber attacks, malware, ransomware, computer viruses, phishing, attachments to e-mails, persons who access our systems from inside or outside our organization, and other significant disruptions of our IT networks and related systems. Our suppliers, subcontractors, and joint venture partners face similar threats and an incident at one of these entities could adversely impact our business. These entities are typically outside our control and may have access to certain of our information with varying levels of security and cybersecurity resources. The risk of a security breach or disruption, particularly through cyber attack, including by computer hackers, foreign governments and cyber terrorists, has generally increased as the number, intensity and sophistication of attempted attacks from around the world have increased, including through the use of artificial intelligence. Although we have not experienced cyber incidents that are individually, or in the aggregate, material, the incidents we have experienced thus far have been mitigated by preventative, detective, and responsive measures that we have put in place. Although we make efforts to maintain the security and integrity of these types of IT networks and related systems, and we have implemented various measures to manage the risk of a security breach or disruption, there can be no assurance that our security efforts and measures will be effective or that attempted security breaches or disruptions would not be successful or damaging. Unauthorized parties, whether within or outside our company, may disrupt or gain access to our systems, or those of third parties with whom we do business, through human error, misfeasance, fraud, trickery, or other forms of deceit, including break-ins, use of stolen credentials, social engineering, phishing, computer viruses or other malicious codes, and similar means of unauthorized and destructive tampering. Even the most well protected information, networks, systems and facilities remain potentially vulnerable because the techniques used in such attempted security breaches evolve and generally are not recognized until launched against a target, and in some cases are designed to not be detected and, in fact, may not be detected. Accordingly, we may be unable to anticipate these techniques or to implement adequate security barriers or other preventative measures, and thus it is impossible for us to entirely mitigate this risk.
A security breach or other significant disruption involving our IT networks and related systems could disrupt the proper functioning of our networks and systems and therefore our operations and/or those of certain of our tenants; result in the unauthorized access to, and destruction, loss, theft, misappropriation or release of, proprietary, confidential, sensitive or otherwise valuable information of ours or others, which others could use to compete against us or which could expose us to damage claims by third-parties for disruptive, destructive or otherwise harmful purposes and outcomes; result in our inability to maintain the building systems relied upon by our tenants for the efficient use of their leased space; require significant management attention and resources to remedy any damages that result; may require payments to the attackers; subject us to litigation claims for breach of contract, damages, credits, fines, penalties, governmental investigations and enforcement actions or termination of leases or other agreements; or damage our reputation among our tenants and investors generally. Any or all of the foregoing could have a material adverse effect on our results of operations, financial condition and cash flows.
A cyber attack or systems failure could interfere with our ability to comply with financial reporting requirements, which could adversely affect us. A cyber attack could also compromise the confidential information of our employees, tenants, customers and vendors. A successful attack could disrupt and materially affect our business operations, including damaging relationships with tenants, customers and vendors. Any compromise of our information security systems could also result in a violation of applicable privacy and other laws, significant legal and financial exposure, damage to our reputation, loss or misuse of the information (which may be confidential, proprietary and/or commercially sensitive in nature) and a loss of confidence in our security measures, which could harm our business.
For additional information on our cybersecurity risk management process, see Item 1C. Cybersecurity.

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ITEM 1B. UNRESOLVED STAFF COMMENTS
ITEM 1B. UNRESOLVED STAFF COMMENTS
There are no unresolved comments from the staff of the Securities and Exchange Commission as of the date of this Annual Report on Form 10-K.

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ITEM 2. PROPERTIES
ITEM 2. PROPERTIES
PROPERTY LISTING
We operate in two reportable segments: New York and Other. The following pages provide details of our real estate properties as of December 31, 2024.
Square Feet
NEW YORK SEGMENT
Property
%
Ownership Type %
Occupancy
In Service Under
Development
or Not
Available
for Lease Total
Property
PENN 1 (ground leased through 2098)(1)
100.0 % Office / Retail 83.7 %
2,552,000 - 2,552,000
1290 Avenue of the Americas 70.0 % Office / Retail 92.7 %
2,106,000 - 2,106,000
PENN 2 100.0 % Office / Retail 100.0 %
402,000 1,393,000 1,795,000
909 Third Avenue (ground leased through 2063)(1)
100.0 % Office 93.1 %
1,352,000 - 1,352,000
280 Park Avenue(2)
50.0 % Office / Retail 92.2 % 1,266,000 - 1,266,000
Independence Plaza, Tribeca (1,327 units)(2)
50.1 % Retail / Residential 54.7 % (3)
1,258,000 - 1,258,000
770 Broadway 100.0 % Office / Retail 56.0 %
1,183,000 - 1,183,000
PENN 11 100.0 % Office / Retail 99.6 %
1,151,000 - 1,151,000
100 West 33rd Street 100.0 % Office / Retail 73.1 %
1,115,000 - 1,115,000
90 Park Avenue 100.0 % Office / Retail 98.2 %
956,000 - 956,000
One Park Avenue 100.0 % Office / Retail 93.6 %
945,000 - 945,000
888 Seventh Avenue (ground leased through 2067)(1)
100.0 % Office / Retail 84.3 %
887,000 - 887,000
The Farley Building
(ground and building leased through 2116)(1)
95.0 % Office / Retail 91.7 % 846,000 - 846,000
330 West 34th Street (65.2% ground leased through 2149)(1)
100.0 % Office / Retail 77.3 %
726,000 - 726,000
85 Tenth Avenue(2)
49.9 % Office / Retail 85.8 %
638,000 - 638,000
650 Madison Avenue(2)
20.1 % Office / Retail 82.9 %
601,000 - 601,000
350 Park Avenue 100.0 % Office 100.0 %
585,000 - 585,000
150 East 58th Street(4)
100.0 % Office / Retail 81.7 %
544,000 - 544,000
7 West 34th Street(2)
53.0 % Office / Retail 100.0 %
477,000 - 477,000
595 Madison Avenue 100.0 % Office / Retail 89.0 %
330,000 - 330,000
640 Fifth Avenue(2)
52.0 % Office / Retail 92.2 %
315,000 - 315,000
Sunset Pier 94 Studios
(ground and building leased through 2110)(1)(2)
49.9 % Studio (5) - 266,000 266,000
260 Eleventh Avenue (ground leased through 2114)(1)
100.0 % Office 100.0 % 209,000 - 209,000
4 Union Square South 100.0 % Retail 100.0 %
204,000 - 204,000
61 Ninth Avenue (2 buildings) (ground leased through 2115)(1)(2)
45.1 % Office / Retail 100.0 % 194,000 - 194,000
512 West 22nd Street(2)
55.0 % Office / Retail 100.0 %
173,000 - 173,000
825 Seventh Avenue 51.2 % Office(2) / Retail
80.1 % 173,000 - 173,000
1540 Broadway(2)
52.0 % Retail 78.5 %
161,000 - 161,000
Paramus 100.0 % Office 85.6 %
129,000 - 129,000
666 Fifth Avenue (2)(6)
52.0 % Retail 100.0 %
114,000 - 114,000
1535 Broadway(2)
52.0 % Retail / Theatre 99.3 %
107,000 - 107,000
57th Street (2 buildings)(2)
50.0 % Office / Retail 71.2 %
103,000 - 103,000
689 Fifth Avenue(2)
52.0 % Office / Retail 100.0 %
97,000 - 97,000
150 West 34th Street 100.0 % Retail 100.0 %
79,000 - 79,000
655 Fifth Avenue(2)
50.0 % Retail 100.0 %
57,000 - 57,000
435 Seventh Avenue 100.0 % Retail 100.0 %
43,000 - 43,000
606 Broadway 50.0 % Office / Retail 24.8 % 36,000 - 36,000
697-703 Fifth Avenue(2)
44.8 % Retail 100.0 % 26,000 - 26,000
1131 Third Avenue 100.0 % Retail 100.0 % 23,000 - 23,000
131-135 West 33rd Street 100.0 % Retail 100.0 % 23,000 - 23,000
________________________________________
See notes on page 28.
PROPERTY LISTING - CONTINUED
Square Feet
NEW YORK SEGMENT - CONTINUED
Property
%
Ownership Type %
Occupancy In Service Under
Development
or Not
Available
for Lease Total
Property
715 Lexington Avenue 100.0 % Retail 100.0 % 22,000 - 22,000
537 West 26th Street 100.0 % Retail 100.0 % 17,000 - 17,000
334 Canal Street 100.0 % Retail / Residential - % (3)
- 14,000 14,000
304-306 Canal Street 100.0 % Retail / Residential 100.0 % (3)
4,000 9,000 13,000
40 East 66th Street (3 units) 100.0 % Residential 100.0 % 10,000 - 10,000
431 Seventh Avenue 100.0 % Retail 100.0 %
9,000 - 9,000
138-142 West 32nd Street 100.0 % Retail 80.3 %
8,000 - 8,000
339 Greenwich Street 100.0 % Retail 100.0 % 8,000 - 8,000
966 Third Avenue 100.0 % Retail 100.0 %
7,000 - 7,000
968 Third Avenue(2)
50.0 % Retail 100.0 %
7,000 - 7,000
137 West 33rd Street 100.0 % Retail 100.0 %
3,000 - 3,000
57th Street(2)
50.0 % Land (5) - - -
Eighth Avenue and 34th Street 100.0 % Land (5) - - -
Hotel Pennsylvania Site (PENN 15) 100.0 % Land (5)
- - -
Other (3 buildings) 100.0 % Retail 100.0 % 16,000 - 16,000
Alexander's, Inc.:
731 Lexington Avenue(2)
32.4 % Office / Retail 98.9 %
1,080,000 - 1,080,000
Rego Park II, Queens (6.6 acres)(2)
32.4 % Retail 99.0 %
479,000 136,000 615,000
Rego Park I, Queens (4.8 acres)(2)
32.4 % Retail 100.0 %
86,000 252,000 338,000
The Alexander Apartment Tower, Queens (312 units)(2)
32.4 % Residential 94.2 %
255,000 - 255,000
Flushing, Queens (1.0 acre ground leased through 2037)(1)(2)
32.4 % Retail 100.0 %
167,000 - 167,000
Total New York Segment 88.6 %
24,364,000 2,070,000 26,434,000
Our Ownership Interest 87.6 %
19,241,000 1,675,000 20,916,000
________________________________________
See notes on page 28.
PROPERTY LISTING - CONTINUED
Square Feet
OTHER SEGMENT
Property
%
Ownership Type %
Occupancy In Service Under
Development
or Not
Available
for Lease Total
Property
THE MART:
THE MART, Chicago
100.0 % Office / Retail / Trade show / Showroom 80.1 % 3,684,000 - 3,684,000
527 West Kinzie, Chicago 100.0 % Land (5) - - -
Other (2 properties)(2), Chicago
50.0 % Retail 89.5 % 19,000 - 19,000
Total THE MART
80.2 % 3,703,000 - 3,703,000
Our Ownership Interest
80.1 % 3,694,000 - 3,694,000
555 California Street:
555 California Street
70.0 % Office / Retail 96.6 % 1,507,000 - 1,507,000
315 Montgomery Street
70.0 % Office / Retail 93.6 % 236,000 - 236,000
345 Montgomery Street
70.0 % Office / Retail - % 78,000 - 78,000
Total 555 California Street
92.0 % 1,821,000 - 1,821,000
Our Ownership Interest
92.0 % 1,275,000 - 1,275,000
Other:
Rosslyn Plaza, VA (197 units)(2)
45.6 % Office / Residential 28.5 % (3)
685,000 304,000 989,000
Fashion Centre Mall / Washington Tower, VA(2)
7.5 % Office / Retail 93.4 % 1,038,000 - 1,038,000
Wayne Towne Center, Wayne, NJ (ground leased through
2064)(1)
100.0 % Retail 100.0 % 686,000 4,000 690,000
Annapolis, MD (ground leased through 2042)(1)
100.0 % Retail 100.0 % 128,000 - 128,000
Atlantic City, NJ (11.3 acres ground leased through 2070 to
VICI Properties for a portion of the Borgata Hotel
and Casino complex) 100.0 % Land 100.0 % - - -
Total Other
83.5 % 2,537,000 308,000 2,845,000
Our Ownership Interest
86.5 % 1,202,000 144,000 1,346,000
________________________________________
(1)Term assumes all renewal options exercised, if applicable.
(2)Denotes property not consolidated in the accompanying consolidated financial statements and related financial data included in the Annual Report on Form 10-K.
(3)Excludes residential occupancy statistics.
(4)Includes 962 Third Avenue (the Annex building to 150 East 58th Street) 50.0% ground leased through 2118 (assuming all renewal options are exercised).
(5)Properties under development or to be developed.
(6)75,000 square feet is leased from the 666 Fifth office condominium. On January 8, 2025, the Fifth Avenue and Times Square joint venture completed the sale to UNIQLO of the portion of its U.S. flagship store at 666 Fifth Avenue. In conjunction with the sale, the lease with the 666 Fifth Avenue office condominium was terminated. The joint venture continues to own 23,832 square feet of retail space at 666 Fifth Avenue. See page 37 for details.
TOP 10 TENANTS BASED ON ANNUALIZED ESCALATED RENTS(1) (AT SHARE):
Tenant Square
Footage
At Share Annualized
Escalated Rents
At Share % of Total Annualized
Escalated Rents
At Share
Meta Platforms, Inc. 1,176,828 $ 141,598 7.7 %
IPG and affiliates 955,211 64,056 3.6 %
Citadel 585,460 62,498 3.5 %
New York University 685,290 49,552 2.7 %
Madison Square Garden & Affiliates(2)
449,053 45,451 2.5 %
Bloomberg L.P. 306,768 43,863 2.4 %
Google/Motorola Mobility (guaranteed by Google) 759,446 42,875 2.3 %
Amazon (including its Whole Foods subsidiary) 312,694 31,025 1.7 %
Swatch Group USA 11,957 28,689 1.5 %
Neuberger Berman Group LLC 306,612 28,363 1.5 %
________________________________________
See notes below.
ANNUALIZED ESCALATED RENTS(1) (AT SHARE) BY TENANT INDUSTRY:
Industry Percentage
Office:
Financial Services 22 %
Technology 15 %
Professional Services 7 %
Real Estate 5 %
Advertising/Marketing 5 %
Entertainment and Electronics 4 %
Education 3 %
Insurance 2 %
Health Services 2 %
Engineering, Architect & Surveying 2 %
Apparel 1 %
Communications 1 %
Government 1 %
Other 6 %
76 %
Retail:
Apparel 4 %
Luxury Retail 4 %
Banking 2 %
Restaurants 2 %
Grocery 1 %
Other 6 %
19 %
Showroom 5 %
Total 100 %
________________________________________
(1)Annualized escalated rents represent monthly contractual base rent before free rent plus tenant reimbursements multiplied by 12. Annualized escalated rents at share include leases signed but not yet commenced in place of current tenants or vacancy in the same space.
(2)Includes Madison Square Garden Entertainment’s new lease at PENN 2. Revenue recognition for portions of the new space has not yet commenced.
NEW YORK
As of December 31, 2024, our New York segment consisted of 26.4 million square feet in 64 properties. The 26.4 million square feet is comprised of 20.1 million square feet of Manhattan office in 30 of the properties, 2.4 million square feet of Manhattan street retail in 49 of the properties, 1,330 units in two residential properties, and our 32.4% interest in Alexander’s, which owns five properties in the greater New York metropolitan area, including 731 Lexington Avenue, the 1.1 million square foot Bloomberg, L.P. headquarters building, and The Alexander, a 312-unit apartment tower in Queens. The New York segment also includes nine garages totaling 1.6 million square feet (4,685 spaces).
As of December 31, 2024, the occupancy rate for our New York segment was 87.6%.
Occupancy and weighted average annual rent per square foot:
Office:
Vornado's Ownership Interest
As of December 31, Total Square Feet In Service
Square Feet In Service
Square Feet
At Share Occupancy
Rate Weighted
Average Annual Escalated Rent
Per Square Foot
2024 20,343,000 18,714,000 16,024,000 88.8 % $ 88.38
2023 20,383,000 18,699,000 16,001,000 90.7 % 86.30
2022 19,902,000 18,724,000 16,028,000 91.9 % 83.98
2021 20,630,000 19,442,000 16,757,000 92.2 % 80.01
2020 20,586,000 18,361,000 15,413,000 93.4 % 79.05
Retail:
Vornado's Ownership Interest
As of December 31, Total Square Feet In Service
Square Feet In Service
Square Feet
At Share Occupancy
Rate Weighted
Average Annual Escalated Rent
Per Square Foot
2024 2,421,000 2,387,000 1,943,000 73.7 % $ 213.05
2023 2,394,000 2,123,000 1,684,000 74.9 % 224.88
2022 2,556,000 2,289,000 1,851,000 74.4 % 215.72
2021 2,693,000 2,267,000 1,825,000 80.7 % 214.22
2020 2,690,000 2,275,000 1,805,000 78.8 % 226.38
Occupancy and average monthly rent per unit:
Residential:
Vornado's Ownership Interest
As of December 31, Total
Number of Units Total
Number of Units Occupancy
Rate Average Monthly
Rent Per Unit
2024 1,642 769 96.6 % $ 4,713
2023 1,974 939 96.8 % 4,115
2022 1,976 941 96.7 % 3,882
2021 1,986 951 97.0 % 3,776
2020 1,995 960 84.9 % 3,714
NEW YORK - CONTINUED
Lease expirations as of December 31, 2024 (at share):
Number of Expiring Leases Square Feet of Expiring Leases(1)
Percentage of
New York Square Feet Annualized Escalated Rents
of Expiring Leases
Year
Total Per Square Foot
Office:
Fourth Quarter 2024(2)
13 56,000 0.4% $ 4,394,000 $ 78.46
2025 67 591,000 4.2% 45,517,000 77.02 (3)
2026 72 1,163,000 8.3% 96,849,000 83.28
2027 100 1,341,000 9.6% 107,992,000 80.53
2028(4)
67 1,051,000 7.5% 85,447,000 81.30
2029 72 1,290,000 9.2% 106,828,000 82.81
2030 64 691,000 4.9% 57,851,000 83.72
2031 37 696,000 5.0% 64,668,000 92.91
2032 32 1,014,000 7.2% 99,800,000 98.42
2033 20 517,000 3.7% 44,524,000 86.12
2034 29 748,000 5.8% 78,714,000 105.23
Retail:
Fourth Quarter 2024(2)
2 1,000 0.1% $ 266,000 $ 266.00
2025 15 178,000 14.0% 15,092,000 84.79 (5)
2026 11 84,000 6.6% 26,722,000 318.12
2027 12 52,000 4.1% 21,514,000 413.73
2028 9 27,000 2.1% 10,978,000 406.59
2029 12 53,000 4.2% 23,559,000 444.51
2030 18 146,000 11.5% 24,458,000 167.52
2031 25 68,000 5.3% 31,214,000 459.03
2032 22 55,000 4.3% 30,115,000 547.55
2033 12 33,000 2.6% 10,754,000 325.88
2034 27 138,000 10.8% 17,308,000 125.42
________________________________________
(1)Excludes storage, vacancy and other.
(2)Includes month-to-month leases, holdover tenants, and leases expiring on the last day of the current quarter.
(3)Based on current market conditions, we expect to re-lease this space at rents between $80 to $90 per square foot.
(4)Excludes the expiration of 492,000 square feet at 909 Third Avenue for U.S. Post Office as we assume the exercise of all renewal options through 2038 given the below-market rent on their options.
(5)Based on current market conditions, we expect to re-lease this space at rents between $125 to $150 per square foot.
Alexander’s
As of December 31, 2024, we own 32.4% of the outstanding common stock of Alexander’s, which owns five properties in the greater New York City aggregating 2.5 million square feet, including 731 Lexington Avenue, the 1.1 million square foot Bloomberg L.P. headquarters building. As of December 31, 2024, Alexander's had an occupancy rate of 99.1% and a weighted average annual rent per square foot of $119.53.
OTHER REAL ESTATE AND INVESTMENTS
THE MART
We own the 3.7 million square foot THE MART in Chicago, whose largest tenant is Motorola Mobility at 609,000 square feet, the lease of which is guaranteed by Google. As of December 31, 2024, THE MART had an occupancy rate of 80.1% and a weighted average annual rent per square foot of $53.32.
555 California Street
We own a 70% controlling interest in a three-building office complex aggregating 1.8 million square feet, located at California and Montgomery Streets in San Francisco’s financial district (“555 California Street”). As of December 31, 2024, 555 California Street had an occupancy rate of 92.0% and a weighted average annual rent per square foot of $98.90.

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ITEM 3. LEGAL PROCEEDINGS
ITEM 3. LEGAL PROCEEDINGS
We are from time to time involved in legal actions arising in the ordinary course of business. In our opinion, after consultation with legal counsel, the outcome of such matters is not expected to have a material adverse effect on our financial position, results of operations or cash flows.

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ITEM 4. MINE SAFETY DISCLOSURE
ITEM 4. MINE SAFETY DISCLOSURES
Not applicable.
PART II

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ITEM 5. MARKET FOR REGISTRANT'S COMMON EQUITY
ITEM 5. MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES
Vornado Realty Trust
Vornado’s common shares are traded on the New York Stock Exchange under the symbol “VNO.”
As of February 1, 2025, there were 695 holders of record of Vornado common shares.
Vornado Realty L.P.
There is no established trading market for the Operating Partnership's Class A units. Class A units that are not held by Vornado may be tendered for redemption to the Operating Partnership for cash; Vornado, at its option, may assume that obligation and pay the holder either cash or Vornado common shares on a one-for-one basis. Because the number of Vornado common shares outstanding at all times equals the number of Class A units owned by Vornado, the redemption value of each Class A unit is equivalent to the market value of one Vornado common share, and the distribution to a Class A unit holder is equal to the dividend paid to a Vornado common shareholder.
As of February 1, 2025, there were 842 Class A unitholders of record.
Recent Sales of Unregistered Securities
Vornado Realty Trust
During the fourth quarter of 2024, Vornado issued 197,519 of its common shares for the redemption of Class A units by certain limited partners of Vornado Realty L.P., and conversions of Series A preferred shares. Such shares were issued in reliance on an exemption from registration under Section 4(a)(2) of the Securities Act of 1933, as amended.
Vornado Realty L.P.
During the fourth quarter of 2024, Vornado Realty L.P. issued (i) 54,929 Class A units to satisfy conversions of restricted Operating Partnership units (“LTIP Units”) (ii) 195 Class A units to satisfy conversions of appreciation-only long-term incentive plan units (“AO LTIP Units”), and (iii) 2,319 LTIP Units pursuant to Vornado’s 2023 Omnibus Share Plan.
On December 5, 2024, the Operating Partnership granted 23,190 LTIP Units at a market price of $43.12 per unit to Vornado consultants that are not executives of the Company as part of their annual consulting fees. The units were issued outside of Vornado’s 2023 Omnibus Share Plan.
All of the securities referred to above were issued in reliance on an exemption from registration under Section 4(a)(2) of the Securities Act of 1933, as amended. There were no cash proceeds associated with these issuances.
From time to time, in connection with equity awards granted under our Omnibus Share Plan, we may withhold common shares for tax purposes or acquire common shares as part of the payment of the exercise price. Although we treat these as repurchases for certain financial statement purposes, these withheld or acquired shares are not considered by us as repurchases for this purpose.
Information relating to compensation plans under which Vornado’s equity securities are authorized for issuance is set forth under Part III, Item 12 of this Annual Report on Form 10-K and such information is incorporated by reference herein.
Recent Purchases of Unregistered Securities
Vornado Realty Trust
In April 2023, our Board of Trustees authorized a share repurchase plan under which Vornado is authorized to repurchase up to $200,000,000 of its outstanding common shares. To the extent Vornado repurchases any of its common shares, in order to fund the common share repurchase and maintain the one-to-one ratio of the number of Vornado common shares outstanding and the number of Class A units owned by Vornado, the Operating Partnership will repurchase from Vornado an equal number of its Class A units at the same price. During the year ended December 31, 2024, no shares were repurchased. As of December 31, 2024, $170,857,000 remained available under the plan and authorized for repurchases. The plan does not have an expiration date and may be suspended or discontinued at any time and does not obligate Vornado to make any repurchases of its common shares.
Vornado Realty L.P.
None.
Performance Graph
The following graph is a comparison of the five-year cumulative return of Vornado’s common shares, the Standard & Poor’s 400 MidCap Index (the “S&P 400 MidCap Index”), the National Association of Real Estate Investment Trusts’ (“NAREIT”) All Equity Index, and the FTSE NAREIT Equity Office Index (the “FTSE Office”), a peer group index. The graph assumes that $100 was invested on December 31, 2019 in our common shares, the S&P 400 MidCap Index, the NAREIT All Equity Index, and the FTSE Office Index and that all dividends were reinvested without the payment of any commissions. There can be no assurance that the performance of our shares will continue in line with the same or similar trends depicted in the graph below.
2019 2020 2021 2022 2023 2024
Vornado Realty Trust $ 100 $ 60 $ 70 $ 37 $ 52 $ 79
S&P 400 MidCap Index 100 114 142 123 144 164
FTSE Office(1)
100 82 100 62 63 77
The NAREIT All Equity Index(2)
100 95 134 101 112 118
________________________________________
(1) The Company has elected to replace the NAREIT All Equity Index with the FTSE Office Index because we believe the FTSE Office Index represents a group of
companies more aligned with a comparable peer group.
(2) To facilitate comparison to the performance graph presented in our Annual Report for the prior year, the NAREIT All Equity Index is presented above.

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ITEM 6. SELECTED FINANCIAL DATA
ITEM 6. RESERVED

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ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS
ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Page Number
Overview 35
Critical Accounting Estimates 42
Net Operating Income At Share by Segment for the Years Ended December 31, 2024 and 2023 43
Results of Operations for the Year Ended December 31, 2024 Compared to December 31, 2023 46
Related Party Transactions 49
Liquidity and Capital Resources 50
Funds From Operations for the Years Ended December 31, 2024 and 2023 56
Introduction
The following discussion should be read in conjunction with the financial statements and related notes included under Part II, Item 8 of this Annual Report on Form 10-K.
Our Management's Discussion and Analysis of Financial Condition and Results of Operations ("MD&A") within this section is focused on the years ended December 31, 2024 and 2023, including year-to-year comparisons between these years. Our MD&A for the year ended December 31, 2022, including year-to-year comparisons between 2023 and 2022, can be found in Part II, Item 7, Management's Discussion and Analysis of Financial Condition and Results of Operations in the Company's Annual Report on Form 10-K for the year ended December 31, 2023.
Overview
Vornado Realty Trust (“Vornado”) is a fully-integrated real estate investment trust (“REIT”) and conducts its business through, and substantially all of its interests in properties are held by, Vornado Realty L.P., (the “Operating Partnership”) a Delaware limited partnership. Accordingly, Vornado’s cash flow and ability to pay dividends to its shareholders are dependent upon the cash flow of the Operating Partnership and the ability of its direct and indirect subsidiaries to first satisfy their obligations to creditors. Vornado is the sole general partner of and owned approximately 91.4% of the common limited partnership interest in the Operating Partnership as of December 31, 2024. All references to the “Company,” “we,” “us” and “our” mean, collectively, Vornado, the Operating Partnership and those subsidiaries consolidated by Vornado.
We own and operate office and retail properties with a concentration in the New York metropolitan area. In addition, we have a 32.4% interest in Alexander’s, Inc. (“Alexander’s”) (NYSE: ALX), which owns five properties in the greater New York metropolitan area, as well as interests in other real estate and investments.
Our business objective is to maximize Vornado shareholder value, which we measure by the total return provided to our shareholders. Below is a table comparing Vornado’s performance to the FTSE Office and the MSCI US REIT Index (“MSCI”) for the following periods ended December 31, 2024:
Total Return(1)
Vornado FTSE Office MSCI
Three-month 8.5 % (0.7 %) (6.1 %)
One-year 51.3 % 21.5 % 8.8 %
Three-year 12.2 % (22.7 %) (6.6 %)
Five-year (21.4 %) (23.0 %) 23.5 %
Ten-year (26.7 %) 3.3 % 73.5 %
________________________________________
(1)Past performance is not necessarily indicative of future performance.
We intend to achieve this objective by continuing to pursue our investment philosophy and to execute our operating strategies through:
•maintaining a superior team of operating and investment professionals and an entrepreneurial spirit;
•investing in properties in select markets, such as New York City, where we believe there is a high likelihood of capital appreciation;
•acquiring quality properties at a discount to replacement cost and where there is a significant potential for higher rents;
•developing and redeveloping properties to increase returns and maximize value; and
•investing in operating companies that have a significant real estate component.
We expect to finance our growth, acquisitions and investments using internally generated funds and proceeds from asset sales and by accessing the public and private capital markets. We may also offer Vornado common or preferred shares or Operating Partnership units in exchange for property and may repurchase or otherwise reacquire these securities in the future.
We compete with a large number of real estate investors, property owners and developers, some of whom may be willing to accept lower returns on their investments. Principal factors of competition are rents charged, tenant concessions offered, attractiveness of location, the quality of the property and the breadth and the quality of services provided. Our success depends upon, among other factors, trends of the global, national, regional and local economies, the financial condition and operating results of current and prospective tenants and customers, availability and cost of capital, construction and renovation costs, taxes, governmental regulations, legislation, population and employment trends. See “Risk Factors” in Item 1A for additional information regarding these factors.
Our business has been, and may continue to be, affected by interest rates fluctuations, the effects of inflation and other uncertainties including the potential for an economic downturn. These factors could have a material impact on our business, financial condition, results of operations and cash flows.
Overview - continued
Vornado Realty Trust
Year Ended December 31, 2024 Financial Results Summary
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.
Funds from operations ("FFO") attributable to common shareholders plus assumed conversions 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. The years ended December 31, 2024 and 2023 include certain items that impact FFO, which are listed in the table below. The aggregate of these items, net of amounts attributable to noncontrolling interests, increased FFO by $22,950,000, or $0.11 per diluted share, for the year ended December 31, 2024 and decreased FFO by $4,359,000, or $0.02 per diluted share, for the year ended December 31, 2023.
The following table reconciles the difference between our FFO attributable to common shareholders plus assumed conversions and our FFO attributable to common shareholders plus assumed conversions, as adjusted:
(Amounts in thousands) For the Year Ended December 31,
2024 2023
Certain (income) expense items that impact FFO attributable to common shareholders plus assumed conversions:
Our share of the gain on the discounted extinguishment of the 280 Park Avenue mezzanine loan $ (31,215) $ -
Deferred tax liability on our investment in the Farley Building (held through a taxable REIT subsidiary) 14,353 11,722
After-tax net gain on sale of 220 Central Park South ("220 CPS") condominium units and ancillary amenities (13,069) (11,959)
Credit losses on investments - 8,269
Other 5,000 (3,336)
(24,931) 4,696
Noncontrolling interests' share of above adjustments on a dilutive basis 1,981 (337)
Total of certain (income) expense items that impact FFO attributable to common shareholders plus assumed conversions, net $ (22,950) $ 4,359
Overview - continued
Same Store Net Operating Income ("NOI") At Share
The percentage decrease in same store NOI at share and same store NOI at share - cash basis of our New York segment, THE MART and 555 California Street are below.
Year Ended December 31, 2024 compared to December 31, 2023:
Total New York THE MART 555
California Street(2)
Same store NOI at share % decrease (6.8) % (4.7) % (17.8) % (1)
(21.9 %)
Same store NOI at share - cash basis % decrease (4.5) % (3.3) % (10.6) % (13.2 %)
________________________________________
(1)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.
(2)2023 includes our $14,103,000 share of the receipt of a tenant settlement, net of legal expenses.
Calculations of same store NOI at share, reconciliations of our net income to NOI at share, NOI at share - cash basis and FFO and the reasons we consider these non-GAAP financial measures useful are provided in the following pages of Management’s Discussion and Analysis of Financial Condition and Results of Operations.
Dividends
On December 5, 2024, Vornado’s Board of Trustees declared a dividend of $0.74 per common share for 2024. We anticipate that our common share dividend policy for 2025 will be to pay one common share dividend in the fourth quarter.
Dispositions
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.
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.
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.
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.
Overview - continued
Financings
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.
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%.
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.
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%.
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%.
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.
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.
Senior Unsecured Notes due 2025
We repaid our $450,000,000 3.50% senior unsecured notes on their January 15, 2025 maturity date.
Overview - continued
Financings - continued
Interest Rate Hedging
We entered into the following interest rate swap and cap arrangements during the year ended December 31, 2024. See page 58, Part II, Item 7A, Quantitative and Qualitative Disclosures About Market Risk - Derivatives and Hedging, in this Annual Report on Form 10-K for further information on our hedging instruments.
(Amounts in thousands) Notional Amount
(at share) All-In Swapped Rate Expiration Date Variable Rate Spread
Interest rate swaps:
280 Park Avenue (50.0% interest) $ 537,500 5.84% 09/28 S+178
PENN 11(1)
250,000 6.21% 10/25 S+206
435 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+146
Rego 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.
Overview - continued
Leasing Activity For the Year Ended December 31, 2024
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 Street
Office Retail THE MART
Year 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.
Overview - continued
Square footage (in service) and Occupancy as of December 31, 2024
(Square feet in thousands) Square Feet (in service)
Number of
properties Total
Portfolio Our
Share Occupancy %
New York:
Office 30 (1) 18,714 16,024 88.8 %
Retail (includes retail properties that are in the base of our office properties) 49 (1) 2,387 1,943 73.7 %
Residential - 1,642 units(2)
2 (1) 1,196 604 96.6 % (2)
Alexander's 5 2,067 670 99.1 % (2)
24,364 19,241 87.6 %
Other:
THE MART 3 3,703 3,694 80.1 %
555 California Street 3 1,821 1,275 92.0 %
Other 11 2,537 1,202 86.5 %
8,061 6,171
Total square feet as of December 31, 2024 32,425 25,412
________________________________________
See notes below.
Square footage (in service) and Occupancy as of December 31, 2023
(Square feet in thousands) Square Feet (in service)
Number of
properties Total
Portfolio Our
Share Occupancy %
New York:
Office 30 (1)
18,699 16,001 90.7 %
Retail (includes retail properties that are in the base of our office properties) 50 (1)
2,123 1,684 74.9 %
Residential - 1,974 units(2)
5 (1)
1,479 745 96.8 % (2)
Alexander's 5 2,331 755 92.6 % (2)
24,632 19,185 89.4 %
Other:
THE MART 3 3,688 3,679 79.2 %
555 California Street 3 1,819 1,274 94.5 %
Other 11 2,537 1,202 91.9 %
8,044 6,155
Total square feet as of December 31, 2023 32,676 25,340
________________________________________
(1)Reflects the Office, Retail and Residential space within our 64 and 65 total New York properties as of December 31, 2024 and 2023, respectively.
(2)The Alexander Apartment Tower (312 units) is reflected in Residential unit count and occupancy.
Critical Accounting Estimates
In preparing the consolidated financial statements we have made estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Accounting estimates are deemed critical if they involve a significant level of estimation uncertainty and have had or are reasonably likely to have a material impact on our financial condition or results of operations. Below is a summary of the critical accounting estimates used in the preparation of our consolidated financial statements. A discussion of our accounting policies is included in Note 2 - Basis of Presentation and Significant Accounting Policies to our consolidated financial statements in this Annual Report on Form 10-K.
Acquisitions of Real Estate
Upon the acquisition of real estate, we assess whether the transaction should be accounted for as an asset acquisition or as a business combination. Acquisitions of integrated sets of assets and activities that do not meet the definition of a business are accounted for as asset acquisitions. Our acquisitions of real estate generally will not meet the definition of a business because substantially all of the fair value is concentrated in a single identifiable asset or group of similar identifiable assets (i.e. land, buildings, and related identified intangible assets).
We assess the fair value of acquired assets (including land, buildings and improvements, identified intangibles, such as acquired above and below-market leases, acquired in-place leases and tenant relationships) and acquired liabilities and we allocate the purchase price on a relative fair value basis. We assess fair value based on estimated cash flow projections based on a number of factors such as historical operating results, known trends, and market/economic conditions and make key assumptions regarding the discount and capitalization rates used in our analyses. The use of different assumptions to value the acquired properties and allocate value between land and building could affect the revenues recognized over the terms of the leases at our properties and the expenses recognized over the property's estimated remaining useful life on our consolidated statements of income.
Impairment Analyses for Investments in Real Estate and Unconsolidated Partially Owned Entities
Our investments in consolidated properties, including any related right-of-use assets and intangible assets, and unconsolidated partially owned entities are individually reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. For our unconsolidated partially owned entities, we consider various qualitative factors to determine if a decrease in the value of our investment is other-than-temporary during our intended holding period. Assessing impairment can be complex and involves a high degree of subjectivity in determining if impairment indicators are present and in estimating the future undiscounted cash flows or the fair value of an asset. In particular, these estimates are sensitive to significant assumptions, including the estimation of future rental revenues, operating expenses, capital expenditures, discount rates and capitalization rates and our intent and ability to hold the related asset, all of which could be affected by our expectations about future market or economic conditions. These estimates can have a significant impact on the undiscounted cash flows or estimated fair value of an asset and could thereby affect the value of our real estate investments on our consolidated balance sheets as well as any potential impairment losses recognized on our consolidated statements of income.
Collectability Assessments for Revenue Recognition
We evaluate on an individual lease basis whether it is probable that we will collect substantially all amounts due from our tenants and recognize changes in the collectability assessment of our operating leases as adjustments to rental revenue. Management exercises judgment in assessing collectability of tenant receivables and considers payment history, current credit status, publicly available information about the financial condition of the tenant, and other factors. Our assessment of the collectability of tenant receivables can have a significant impact on the rental revenue recognized in our consolidated statements of income.
Recent Accounting Pronouncements
See Note 2 - Basis of Presentation and Significant Accounting Policies to our consolidated financial statements in this Annual Report on Form 10-K for a discussion concerning recent accounting pronouncements.
NOI At Share by Segment for the Years Ended December 31, 2024 and 2023
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 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.
Below is a summary of NOI at share and NOI at share - cash basis by segment for the years ended December 31, 2024 and 2023.
(Amounts in thousands) For the Year Ended December 31, 2024
Total New York Other
Total revenues $ 1,787,686 $ 1,471,997 $ 315,689
Operating expenses (927,796) (766,347) (161,449)
NOI - consolidated 859,890 705,650 154,240
Deduct: NOI attributable to noncontrolling interests in consolidated subsidiaries (39,367) (12,899) (26,468)
Add: NOI from partially owned entities 279,229 269,159 10,070
NOI at share 1,099,752 961,910 137,842
Non-cash adjustments for straight-line rents, amortization of acquired below-market leases, net and other (3,663) (17,888) 14,225
NOI at share - cash basis $ 1,096,089 $ 944,022 $ 152,067
(Amounts in thousands) For the Year Ended December 31, 2023
Total New York Other
Total revenues $ 1,811,163 $ 1,452,158 $ 359,005
Operating expenses (905,158) (733,478) (171,680)
NOI - consolidated 906,005 718,680 187,325
Deduct: NOI attributable to noncontrolling interests in consolidated subsidiaries (48,553) (15,547) (33,006)
Add: NOI from partially owned entities 285,761 274,436 11,325
NOI at share 1,143,213 977,569 165,644
Non-cash adjustments for straight-line rents, amortization of acquired below-market leases, net and other (3,377) (7,700) 4,323
NOI at share - cash basis $ 1,139,836 $ 969,869 $ 169,967
NOI At Share by Segment for the Years Ended December 31, 2024 and 2023 - continued
The elements of our New York and Other NOI at share for the years ended December 31, 2024 and 2023 are summarized below.
(Amounts in thousands) For the Year Ended December 31,
2024 2023
New York:
Office $ 706,592 $ 727,000
Retail 191,379 188,561
Residential 24,044 21,910
Alexander's 39,895 40,098
Total New York 961,910 977,569
Other:
THE MART(1)
51,686 61,519
555 California Street(2)
64,963 82,965
Other investments 21,193 21,160
Total Other 137,842 165,644
NOI at share $ 1,099,752 $ 1,143,213
________________________________________
See notes below.
The elements of our New York and Other NOI at share - cash basis for the years ended December 31, 2024 and 2023 are summarized below.
(Amounts in thousands) For the Year Ended December 31,
2024 2023
New York:
Office $ 698,138 $ 726,914
Retail 176,798 180,932
Residential 22,914 20,588
Alexander's 46,172 41,435
Total New York 944,022 969,869
Other:
THE MART 57,235 62,579
555 California Street(2)
74,621 85,819
Other investments 20,211 21,569
Total Other 152,067 169,967
NOI at share - cash basis $ 1,096,089 $ 1,139,836
________________________________________
(1)2024 includes a $4,560 write-off of a receivable arising from the straight-lining of rents due to the tenant being deemed uncollectible.
(2)2023 includes our $14,103 share of the receipt of a tenant settlement, net of legal expenses.
NOI At Share by Segment for the Years Ended December 31, 2024 and 2023 - continued
Reconciliation of Net Income to NOI At Share and NOI At Share - Cash Basis for the Years Ended December 31, 2024 and 2023
Below is a reconciliation of net income to NOI at share and NOI at share - cash basis for the years ended December 31, 2024 and 2023.
(Amounts in thousands) For the Year Ended December 31,
2024 2023
Net income $ 20,116 $ 32,888
Depreciation and amortization expense 447,500 434,273
General and administrative expense 148,520 162,883
Transaction related costs, impairment losses and other 5,242 50,691
Income from partially owned entities (112,464) (38,689)
Interest and other investment income, net (45,974) (43,287)
Interest and debt expense 390,269 349,223
Net gains on disposition of wholly owned and partially owned assets (16,048) (71,199)
Income tax expense 22,729 29,222
NOI from partially owned entities 279,229 285,761
NOI attributable to noncontrolling interests in consolidated subsidiaries (39,367) (48,553)
NOI at share 1,099,752 1,143,213
Non-cash adjustments for straight-line rents, amortization of acquired below-market leases, net, and other (3,663) (3,377)
NOI at share - cash basis $ 1,096,089 $ 1,139,836
NOI At Share by Region(1)
For the Year Ended December 31,
2024 2023
Region:
New York metropolitan area 89 % 88 %
Chicago, IL 5 % 6 %
San Francisco, CA(1)
6 % 6 %
100 % 100 %
________________________________________
(1) 2023 excludes our $14,103,000 share of the receipt of a tenant settlement, net of legal expenses.
Results of Operations - Year Ended December 31, 2024 Compared to December 31, 2023
Revenues
Our revenues were $1,787,686,000 for the year ended December 31, 2024 compared to $1,811,163,000 in the prior year, a decrease of $23,477,000. Below are the details of the (decrease) increase by segment:
(Amounts in thousands)
Increase (decrease) due to: Total New York Other
Rental revenues:
Acquisitions, dispositions and other $ 9,214 $ 9,038 $ 176
Development and redevelopment 22,763 22,763 -
Trade shows 760 - 760
Same store operations (71,417) (41,192) (30,225) (1)
(38,680) (9,391) (29,289)
Fee and other income:
BMS cleaning fees 7,288 8,295 (1,007)
Management and leasing fees 1,640 1,824 (184)
Other income 6,275 19,111 (12,836)
15,203 29,230 (14,027)
Total (decrease) increase in revenues $ (23,477) $ 19,839 $ (43,316)
________________________________________
See notes below.
Expenses
Our expenses were $1,541,696,000 for the year ended December 31, 2024 compared to $1,565,167,000 in the prior year, a decrease of $23,471,000. Below are the details of the decrease by segment:
(Amounts in thousands)
Increase (decrease) due to: Total New York Other
Operating:
Acquisitions, dispositions and other $ 10,319 $ 11,863 $ (1,544)
Development and redevelopment 5,033 5,033 -
Non-reimbursable expenses (2,394) (2,394) -
Trade shows (19) - (19)
BMS expenses 3,688 4,695 (1,007)
Same store operations 6,011 13,672 (7,661)
22,638 32,869 (10,231)
Depreciation and amortization:
Acquisitions, dispositions and other (2,460) (2,460) -
Development and redevelopment 3,643 3,643 -
Same store operations 12,044 9,537 2,507
13,227 10,720 2,507
General and administrative (14,363) 279 (14,642) (2)
Expense from deferred compensation plan liability 476 - 476
Transaction related costs, impairment losses and other (45,449) (44,783) (3) (666)
Total decrease in expenses $ (23,471) $ (915) $ (22,556)
________________________________________
(1)2023 includes the receipt of a $21,350 tenant settlement, of which $6,405 is attributable to noncontrolling interests.
(2)Primarily due to the acceleration of non-cash expense on equity compensation grants for retirement eligible employees in 2023.
(3)2023 includes non-cash impairment losses of $45,007.
Results of Operations - Year Ended December 31, 2024 Compared to December 31, 2023 - continued
Income from Partially Owned Entities
Below are the components of income from partially owned entities.
(Amounts in thousands) Percentage Ownership as of December 31, 2024 For the Year Ended December 31,
2024 2023
Our share of net income (loss):
Fifth Avenue and Times Square JV:
Equity in net income(1)
51.5% $ 43,451 $ 35,209
Return on preferred equity, net of our share of the expense 40,668 37,416
84,119 72,625
Partially owned office buildings(2)(3)(4)
Various (839) (73,589)
Alexander's Inc.(5)
32.4% 19,076 37,075
Other equity method investments(3)(6)
Various 10,108 2,578
$ 112,464 $ 38,689
________________________________________
(1)2023 includes a $5,120 accrual of default interest which was forgiven by the lender as part of the restructuring of the 697-703 Fifth Avenue loan and is being amortized over the remaining term of the restructured loan, reducing future interest expense.
(2)Includes interests in 280 Park Avenue, 7 West 34th Street, 512 West 22nd Street, 61 Ninth Avenue, 85 Tenth Avenue and others.
(3)In 2023, we recognized $50,458 of impairment losses.
(4)2024 includes our $31,215 share of the debt extinguishment gain from the repayment of the 280 Park Avenue mezzanine loan.
(5)2023 includes our $16,396 share of the net gain from the sale of Alexander’s Rego III land parcel.
(6)Includes interests in Independence Plaza, Rosslyn Plaza and others.
Interest and Other Investment Income, net
The following table sets forth the details of interest and other investment income, net.
(Amounts in thousands) For the Year Ended December 31,
2024 2023
Interest on cash and cash equivalents and restricted cash $ 42,571 $ 44,786
Interest on loans receivable 3,450 1,351
(Loss) income from real estate fund investments (47) 1,590
Credit losses on investments - (8,269)
Amortization of discount on investments in U.S. Treasury bills - 3,829
$ 45,974 $ 43,287
Results of Operations - Year Ended December 31, 2024 Compared to December 31, 2023 - continued
Interest and Debt Expense
Interest and debt expense was $390,269,000 for the year ended December 31, 2024, compared to $349,223,000 in the prior year, an increase of $41,046,000. This was primarily due to (i) $30,756,000 of higher amortization of interest rate cap premiums and (ii) $19,568,000 of higher interest expense resulting from higher average interest rates, inclusive of the impact of our interest rate hedging instruments, partially offset by (iii) $8,150,000 of higher capitalized interest.
Net Gains on Disposition of Wholly Owned and Partially Owned Assets
Net gains on disposition of wholly owned and partially owned assets of $16,048,000 for the year ended December 31, 2024, consists of (i) $15,175,000 from the sale of two condominium units at 220 CPS and (ii) $873,000 from the sale of our 49.9% interest in 50-70 West 93rd Street to our joint venture partner. Net gains on disposition of wholly owned and partially owned assets of $71,199,000 for the year ended December 31, 2023, primarily consists of (i) $35,968,000 upon contribution of our Pier 94 leasehold to Sunset Pier 94 Joint Venture (“Pier 94 JV”) primarily due to the step-up of our retained investment in the leasehold interest to fair value, (ii) $20,181,000 from the sale of The Armory Show, and (iii) $14,127,000 from the sale of two condominium units at 220 CPS.
Income Tax Expense
Income tax expense was $22,729,000 for the year ended December 31, 2024, compared to $29,222,000 in the prior year, a decrease of $6,493,000. This was primarily due to lower income tax expense incurred by our taxable REIT subsidiaries.
Net Loss Attributable to Noncontrolling Interests in Consolidated Subsidiaries
Net loss attributable to noncontrolling interests in consolidated subsidiaries was $51,131,000 for the year ended December 31, 2024, compared to $75,967,000 in the prior year, a decrease of $24,836,000. This resulted primarily from the allocation of the impairment loss recognized on 606 Broadway during 2023.
Same Store Net Operating Income At Share
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 year ended December 31, 2024 compared to December 31, 2023.
(Amounts in thousands) Total New York THE MART 555 California Street Other
NOI 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) % - %
Results of Operations - Year Ended December 31, 2024 Compared to December 31, 2023 - continued
Same Store Net Operating Income At Share - 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 Other
NOI 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) % - %
Related Party Transactions
See Note 21 - Related Party Transactions to our consolidated financial statements in this Annual Report on Form 10-K for a discussion concerning related party transactions.
Liquidity and Capital Resources
Our cash requirements include property operating expenses, capital improvements, tenant improvements, debt service, leasing commissions, dividends to our shareholders, distributions to unitholders of the Operating Partnership, as well as acquisition and development and redevelopment costs. The sources of liquidity to fund these cash requirements include rental revenue, which is our primary source of cash flow and is dependent upon the occupancy and rental rates of our properties; proceeds from debt financings, including mortgage loans, senior unsecured borrowings, unsecured term loans and unsecured revolving credit facilities; proceeds from the issuance of common and preferred equity; and asset sales.
As of December 31, 2024, we have $2.5 billion of liquidity comprised of $950.0 million of cash and cash equivalents and restricted cash and $1.5 billion available on our $2.2 billion revolving credit facilities. The ongoing challenges posed by fluctuations in interest rates and the effects of inflation could adversely impact our cash flow from continuing operations but we anticipate that cash flow from continuing operations over the next twelve months together with cash balances on hand will be adequate to fund our business operations, cash distributions to unitholders of the Operating Partnership, cash dividends to our shareholders, debt amortization and recurring capital expenditures. Capital requirements for development and redevelopment expenditures and acquisitions may require funding from borrowings, equity offerings and/or asset sales.
We may from time to time repurchase or retire our outstanding debt securities or repurchase or redeem our equity securities. Such purchases, if any, will depend on prevailing market conditions, liquidity requirements and other factors. The amounts involved in connection with these transactions could be material to our consolidated financial statements.
In April 2023, our Board of Trustees authorized the repurchase of up to $200,000,000 of our outstanding common shares under a share repurchase program. As of December 31, 2024, $170,857,000 remained available and authorized for repurchases.
Summary of Cash Flows
Cash and cash equivalents and restricted cash was $949,619,000 as of December 31, 2024, a $311,965,000 decrease from the balance as of December 31, 2023.
Our cash flow activities are summarized as follows:
(Amounts in thousands) For the Year Ended December 31, (Decrease) Increase in Cash Flow
2024 2023
Net cash provided by operating activities $ 537,723 $ 648,152 $ (110,429)
Net cash used in investing activities (597,365) (128,788) (468,577)
Net cash used in financing activities (252,323) (278,937) 26,614
$ (311,965) $ 240,427 $ (552,392)
Operating Activities
Net cash provided by operating activities primarily consists of cash inflows from rental revenues and operating distributions from our unconsolidated partially owned entities less cash outflows for property expenses, general and administrative expenses and interest expense. For the year ended December 31, 2024, net cash provided by operating activities of $537,723,000 was comprised of $594,706,000 of cash from operations, including distributions of income from partially owned entities of $142,880,000 and a net decrease of $56,983,000 in cash due to the timing of cash receipts and payments related to changes in operating assets and liabilities.
Liquidity and Capital Resources - continued
Summary of Cash Flows - continued
Investing Activities
Net cash flow used in investing activities is impacted by the timing and extent of our development, capital improvement, acquisition and disposition activities during the year.
The following table details the net cash used in investing activities:
(Amounts in thousands) For the Year Ended December 31, Increase (Decrease) in Cash Flow
2024 2023
Development costs and construction in progress $ (242,874) $ (552,701) $ 309,827
Additions to real estate (222,739) (211,899) (10,840)
Investments in partially owned entities (115,357) (57,297) (58,060)
Investment in loan receivable (50,000) - (50,000)
Proceeds from sale of condominium units at 220 Central Park South 31,605 24,484 7,121
Proceeds from sales of real estate 2,000 123,519 (121,519)
Proceeds from maturities of U.S. Treasury bills - 468,598 (468,598)
Proceeds from repayment of participation in 150 West 34th Street mortgage loan - 105,000 (105,000)
Acquisitions of real estate and other - (33,145) 33,145
Distributions of capital from partially owned entities - 18,869 (18,869)
Deconsolidation of cash and restricted cash held by a previously consolidated entity - (14,216) 14,216
Net cash used in investing activities $ (597,365) $ (128,788) $ (468,577)
Financing Activities
Net cash flow used in financing activities is impacted by the timing and extent of issuances of debt and equity securities, distributions paid to common shareholders and unitholders of the Operating Partnership as well as principal and other repayments associated with our outstanding debt.
The following table details the net cash used in financing activities:
(Amounts in thousands) For the Year Ended December 31, Increase (Decrease) in Cash Flow
2024 2023
Dividends paid on common shares/Distributions to Vornado $ (141,103) $ (129,066) $ (12,037)
Repayments of borrowings (97,439) (148,000) 50,561
Proceeds from borrowings 75,000 - 75,000
Dividends paid on preferred shares/Distributions to preferred unitholders (62,112) (62,116) 4
Distributions to redeemable security holders and noncontrolling interests in consolidated subsidiaries (18,156) (38,970) 20,814
Deferred financing costs (13,870) (4,424) (9,446)
Contributions from noncontrolling interests in consolidated subsidiaries 5,300 132,701 (127,401)
Repurchase of common shares/Class A units owned by Vornado - (29,183) 29,183
Other financing activity, net 57 121 (64)
Net cash used in financing activities $ (252,323) $ (278,937) $ 26,614
Dividends
We anticipate that our common share dividend policy for 2025 will be to pay one common share dividend in the fourth quarter. If Vornado’s Board of Trustees were to declare a dividend consistent with our 2024 common share dividend of $0.74, the Operating Partnership would be required to distribute approximately (i) $141,000,000 of cash to Vornado for distribution to its common shareholders and (ii) $12,600,000 of cash to third party Class A unitholders. Additionally, during 2025, Vornado expects to pay approximately $62,000,000 of cash dividends on preferred shares based on the number of preferred shares outstanding as of December 31, 2024.
Liquidity and Capital Resources - continued
Debt
We have an effective shelf registration for the offering of our equity and debt securities that is not limited in amount due to our status as a “well-known seasoned issuer.” We have issued senior unsecured notes from a shelf registration statement that contain financial covenants that restrict our ability to incur debt, and that require us to maintain a level of unencumbered assets based on the level of our secured debt. Our unsecured revolving credit facilities and unsecured term loan contain financial covenants that require us to maintain minimum interest coverage and maximum debt to market capitalization ratios, and provide for increased interest rates in the event of a decline in the credit rating assigned to our senior unsecured notes. Our unsecured revolving credit facilities and unsecured term loan also contain customary conditions precedent to borrowing, including representations and warranties, and contain customary events of default that could give rise to accelerated repayment, including such items as failure to pay interest or principal. As of December 31, 2024, we were in compliance with all of the financial covenants required by our senior unsecured notes, our unsecured revolving credit facilities and our unsecured term loan.
A summary of our consolidated debt as of December 31, 2024 is presented below.
(Amounts in thousands) As of December 31, 2024
Consolidated debt: Balance Weighted
Average
Interest Rate(1)
Fixed rate(2)
$ 7,066,400 4.28%
Variable rate(3)
1,215,776 5.80%(4)
Total 8,282,176 4.50%
Deferred financing costs, net and other (39,300)
Total, net $ 8,242,876
_______________________________________
(1)Represents the interest rate in effect as of period end based on the appropriate reference rate as of the contractual reset date plus contractual spread, adjusted for hedging instruments, as applicable.
(2)Includes variable rate debt with interest rates fixed by interest rate swap arrangements and the $950,000 1290 Avenue of the Americas mortgage loan which is subject to a 1.00% SOFR interest rate cap arrangement.
(3)Includes variable rate mortgages subject to interest rate cap arrangements, except for the 1290 Avenue of the Americas mortgage loan discussed above. As of December 31, 2024, $960,000 of our variable rate debt was subject to interest rate cap arrangements. The interest rate cap arrangements have a weighted average strike rate of 4.79% and a weighted average remaining term of four months.
(4)Excludes additional 3.00% default interest on the 606 Broadway mortgage loan.
During 2025 and 2026, $1,328,057,000 and $925,000,000, respectively, of our outstanding consolidated debt matures, assuming the exercise of as-of-right extension options. These amounts exclude the $74,119,000 606 Broadway mortgage loan which is in maturity default. We may refinance this maturing debt as it comes due or choose to repay it using cash and cash equivalents or our unsecured revolving credit facilities. We may also refinance or prepay other outstanding debt depending on prevailing market conditions, liquidity requirements and other factors. The amounts involved in connection with these transactions could be material to our consolidated financial statements.
Details of 2024 financing activities are provided in the “Overview” of Management’s Discussion and Analysis of Financial Condition and Results of Operations.
The contractual principal and interest repayments schedule of our consolidated debt as of December 31, 2024 is presented below. The below excludes the $74,119,000 606 Broadway mortgage loan which is in maturity default. See page 93 for details.
(Amounts in thousands)
Total Less than 1 Year 1 - 3 Years 3 - 5 Years Thereafter
Notes and mortgages payable $ 6,416,368 $ 1,147,623 $ 2,508,038 $ 2,396,325 $ 364,382
Senior unsecured notes due 2025(1)
450,613 450,613 - - -
Senior unsecured notes due 2026 412,207 8,600 403,607 - -
Senior unsecured notes due 2031 426,391 11,900 23,800 23,800 366,891
Unsecured term loan 914,389 37,700 876,689 - -
Revolving credit facilities 642,648 22,597 620,051 - -
Total contractual principal(2) and interest(3) repayments
$ 9,262,616 $ 1,679,033 $ 4,432,185 $ 2,420,125 $ 731,273
________________________________________
(1)We repaid our $450,000 3.50% senior unsecured notes on their January 15, 2025 maturity date.
(2)Based on the contractual maturity of our loans, including as-of-right extension options, as of December 31, 2024.
(3)Estimated interest for variable rate debt based on the Term SOFR curve available as of December 31, 2024.
Liquidity and Capital Resources - continued
Capital Expenditures
Capital expenditures consist of expenditures to maintain and improve assets, tenant improvement allowances and leasing commissions. During 2025, we expect to spend $275,000,000 of capital expenditures for our consolidated properties. We plan to fund these capital expenditures from operating cash flow, existing liquidity, and/or borrowings. Our partially owned non-consolidated subsidiaries typically fund their capital expenditures without any additional equity contribution from us.
Development and Redevelopment Projects and Opportunities
Development and redevelopment expenditures consist of all hard and soft costs associated with the development and redevelopment of a property. We plan to fund these development and redevelopment expenditures from operating cash flow, existing liquidity, and/or borrowings. See detailed discussion below for our current development and redevelopment projects.
PENN District
PENN 2
We are redeveloping PENN 2, a 1,795,000 square foot (as expanded) office building, located on the west side of Seventh Avenue between 31st and 33rd Street. The development cost of this project is estimated to be $750,000,000, of which $697,451,000 of cash has been expended as of December 31, 2024.
We are also making districtwide improvements within the PENN District. The development cost of these improvements is estimated to be $100,000,000, of which $70,919,000 of cash has been expended as of December 31, 2024.
Sunset Pier 94 Studios
On August 28, 2023, we, together with Hudson Pacific Properties and Blackstone Inc., formed a joint venture to develop a 266,000 square foot purpose-built studio campus in Manhattan. We own a 49.9% equity interest in the joint venture. The development cost of the project is estimated to be $350,000,000, which will be funded with $183,200,000 of construction financing ($29,782,000 drawn as of December 31, 2024) and $166,800,000 of equity contributions. Our share of equity contributions was funded by (i) our $40,000,000 Pier 94 leasehold interest contribution and (ii) $34,000,000 of cash contributions, which are net of an estimated $9,000,000 for our share of development fees and reimbursement for overhead costs incurred by us. As of December 31, 2024, we have fully funded our share of equity and cash contributions.
350 Park Avenue
On January 24, 2023, we and the Rudin family (“Rudin”) completed agreements with Citadel Enterprise Americas LLC (“Citadel”) and with an affiliate of Kenneth C. Griffin, Citadel’s Founder and CEO (“KG”), for a series of transactions relating to 350 Park Avenue and 40 East 52nd Street. In connection therewith, we entered into a joint venture with Rudin (the “Vornado/Rudin JV”) that purchased 39 East 51st Street for $40,000,000, funded on a 50/50 basis by Vornado and Rudin. 39 East 51st Street will be combined with 350 Park Avenue and 40 East 52nd Street to create a premier development site (the “350 Park Site”). From October 2024 to June 2030, an affiliate of KG has the option to either (i) acquire a 60% interest in a joint venture with the Vornado/Rudin JV (with Vornado having an effective 36% interest in the entity) to build a new 1,700,000 square foot office tower, valuing the 350 Park Site at $1.2 billion or (ii) purchase the 350 Park Site for $1.4 billion ($1.085 billion to Vornado). From October 2024 to September 2030, the Vornado/Rudin JV has the option to put the 350 Park Site to KG for $1.2 billion ($900,000,000 to Vornado).
We are also evaluating other development and redevelopment opportunities at certain of our properties in Manhattan including, in particular, the PENN District.
There can be no assurance that the above projects will be completed, completed on schedule or within budget.
Liquidity and Capital Resources - continued
Other Obligations
We have contractual cash obligations for certain properties that are subject to long-term ground and building leases. During 2025, $58,522,000 of lease payments are due, including fair market rent resets accounted for as variable rent and excluding prior period accruals for ground rent resets yet to be determined. For 2026 and thereafter, we have $2,367,881,000 of future lease payments. We believe that our operating cash flow will be adequate to fund these lease payments.
Our future lease payments disclosed above include payments for our PENN 1 ground lease based on an amount estimated in January 2022, when we exercised the second of three 25-year renewal options. The first renewal period commenced June 2023 and, together with the second option exercise, extends the lease term through June 2073. The ground lease is subject to fair market value resets at each 25-year renewal period. The rent reset process for the June 2023 renewal period is currently ongoing and the timing is uncertain. The final fair market value determination may be materially higher or lower than our January 2022 estimate.
Insurance
For our properties, we maintain general liability insurance with limits of $300,000,000 per occurrence and per property, of which $275,000,000, includes communicable disease coverage, and we maintain all risk property and rental value insurance with limits of $2.0 billion per occurrence, with sub-limits for certain perils such as flood and earthquake, excluding communicable disease coverage. Our California properties have earthquake insurance with coverage of $350,000,000 per occurrence and in the aggregate, subject to a deductible in the amount of 5% of the value of the affected property. We maintain coverage for certified terrorism acts with limits of $6.0 billion per occurrence and in the aggregate (as listed below), $1.2 billion for non-certified acts of terrorism, and $5.0 billion per occurrence and in the aggregate for terrorism involving nuclear, biological, chemical and radiological (“NBCR”) terrorism events, as defined by the Terrorism Risk Insurance Act of 2002, as amended to date and which has been extended through December 2027.
Penn Plaza Insurance Company, LLC (“PPIC”), our wholly owned consolidated subsidiary, acts as a re-insurer with respect to a portion of all risk property and rental value insurance and a portion of our earthquake insurance coverage, and as a direct insurer for coverage for acts of terrorism including NBCR acts. Coverage for acts of terrorism (excluding NBCR acts) is fully reinsured by third party insurance companies and the Federal government with no exposure to PPIC. For NBCR acts, PPIC is responsible for a deductible of $2,396,808 and 20% of the balance of a covered loss and the Federal government is responsible for the remaining portion of a covered loss. We are ultimately responsible for any loss incurred by PPIC.
Certain condominiums in which we own an interest (including the Farley Condominiums) maintain insurance policies with different per occurrence and aggregate limits than our policies described above.
We continue to monitor the state of the insurance market and the scope and costs of coverage for acts of terrorism and other events. However, we cannot anticipate what coverage will be available on commercially reasonable terms in the future. We are responsible for uninsured losses and for deductibles and losses in excess of our insurance coverage, which could be material.
Our debt instruments, consisting of mortgage loans secured by our properties, senior unsecured notes and revolving credit agreements contain customary covenants requiring us to maintain insurance. Although we believe that we have adequate insurance coverage for purposes of these agreements, we may not be able to obtain an equivalent amount of coverage at reasonable costs in the future. Further, if lenders insist on greater coverage than we are able to obtain it could adversely affect our ability to finance or refinance our properties and expand our portfolio.
Other Commitments and Contingencies
We are from time to time involved in legal actions arising in the ordinary course of business. In our opinion, after consultation with legal counsel, the outcome of such matters is not currently expected to have a material adverse effect on our financial position, results of operations or cash flows.
Each of our properties has been subjected to varying degrees of environmental assessment at various times. The environmental assessments did not reveal any material environmental contamination. However, there can be no assurance that the identification of new areas of contamination, changes in the extent or known scope of contamination, the discovery of additional sites, or changes in cleanup requirements would not result in significant costs to us.
Liquidity and Capital Resources - continued
Other Commitments and Contingencies - continued
We may, from time to time, enter into guarantees including, but not limited to, payment guarantees to lenders of unconsolidated joint ventures for tax purposes, completion guarantees for development and redevelopment projects, and guarantees to fund leasing costs. These agreements terminate either upon the satisfaction of specified obligations or repayment of the underlying loans. As of December 31, 2024, the aggregate dollar amount of these guarantees is approximately $516,872,000, including the payment guarantee for the mortgage loan secured by 7 West 34th Street. Other than these loans, our mortgage loans are non-recourse to us.
As of December 31, 2024, $57,643,000 of letters of credit were outstanding under our unsecured revolving credit facilities. Our unsecured revolving credit facilities contain financial covenants that require us to maintain minimum interest coverage and maximum debt to market capitalization ratios, and provide for increased interest rates in the event of a decline in the credit rating assigned to our senior unsecured notes. Our unsecured revolving credit facilities also contain customary conditions precedent to borrowing, including representations and warranties, and also contain customary events of default that could give rise to accelerated repayment, including such items as failure to pay interest or principal.
Our 95% consolidated joint venture (5% is owned by Related Companies ("Related")) developed and owns the Farley Building. In connection with the development of the property, the joint venture admitted a historic Tax Credit Investor partner. Under the terms of the historic tax credit arrangement, the joint venture is required to comply with various laws, regulations, and contractual provisions. Non-compliance with applicable requirements could result in projected tax benefits not being realized and, therefore, may require a refund or reduction of the Tax Credit Investor’s capital contributions. As of December 31, 2024, the Tax Credit Investor has made $208,407,000 in capital contributions. Vornado and Related have guaranteed certain of the joint venture’s obligations to the Tax Credit Investor.
As of December 31, 2024, we had construction commitments aggregating approximately $61,016,000.
Funds From Operations
Vornado Realty Trust
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. The calculations of both the numerator and denominator used in the computation of income per share are disclosed in Note 12 - Income (Loss) Per Share and Per Class A Unit, in our consolidated financial statements in Part II, Item 8 of this Annual Report on Form 10-K. Details of certain items that impact FFO are discussed in the financial results summary of our “Overview.”
Below is a reconciliation of net income attributable to common shareholders to FFO attributable to common shareholders plus assumed conversions for the years ended December 31, 2024 and 2023.
(Amounts in thousands, except per share amounts) For the Year Ended December 31,
2024 2023
Reconciliation of net income attributable to common shareholders to FFO attributable to common shareholders plus assumed conversions:
Net income attributable to common shareholders $ 8,275 $ 43,378
Per diluted share $ 0.04 $ 0.23
FFO adjustments:
Depreciation and amortization of real property $ 399,694 $ 385,608
Net gains on sale of real estate (873) (53,305)
Real estate impairment losses -
22,831
Our share of partially owned entities:
Depreciation and amortization of real property 101,195 108,088
Net gain on sale of real estate - (16,545)
Real estate impairment losses - 50,458
FFO adjustments, net 500,016 497,135
Impact of assumed conversion of dilutive convertible securities 1,549 1,642
Noncontrolling interests' share of above adjustments on a dilutive basis (39,819) (38,363)
FFO attributable to common shareholders plus assumed conversions $ 470,021 $ 503,792
Per diluted share $ 2.37 $ 2.59
Reconciliation of weighted average shares outstanding:
Weighted average common shares outstanding 190,539 191,005
Effect of dilutive securities:
Convertible securities 1,556 2,468
Share-based payment awards 6,087 851
Denominator for FFO per diluted share 198,182 194,324

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ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
We have exposure to fluctuations in market interest rates. Market interest rates are sensitive to many factors that are beyond our control. Our exposure to a change in interest rates on our consolidated and non-consolidated debt (all of which arises out of non-trading activity) is as follows:
(Amounts in thousands, except per share and unit amounts) As of December 31, 2024
Balance Weighted Average
Interest Rate(1)
Effect of 1% Change In Base Rates(2)
Consolidated debt:
Fixed rate(3)
$ 7,066,400 4.28% $ -
Variable rate(4)
1,215,776 5.80%(5)
6,548
$ 8,282,176 4.50% 6,548
Pro rata share of debt of non-consolidated entities:
Fixed rate(3)
$ 2,033,525 4.85% -
Variable rate(6)
444,176 6.43% 2,012
$ 2,477,701 5.13% 2,012
Noncontrolling interests’ share of consolidated subsidiaries (3,971)
Total change in annual net income attributable to the Operating Partnership 4,589
Noncontrolling interests’ share of the Operating Partnership (376)
Total change in annual net income attributable to Vornado $ 4,213
Total change in annual net income attributable to the
Operating Partnership per diluted Class A unit $ 0.02
Total change in annual net income attributable to Vornado
per diluted common share $ 0.02
_______________________________________
(1)Represents the interest rate in effect as of period end based on the appropriate reference rate as of the contractual reset date plus contractual spread, adjusted for hedging instruments, as applicable.
(2)The impact of the interest rate cap arrangements discussed on the following page is reflected in our calculation of the effect of 1% change in base rates.
(3)Includes variable rate debt with interest rates fixed by interest rate swap arrangements and the $950,000 1290 Avenue of the Americas mortgage loan which is subject to a 1.00% SOFR interest rate cap arrangement.
(4)Includes variable rate debt subject to interest rate cap arrangements with a total notional amount of $960,000, of which $360,000 is attributable to noncontrolling interests. The interest rate cap arrangements have a weighted average strike rate of 4.79% and a weighted average remaining term of four months.
(5)Excludes additional 3.00% default interest on the 606 Broadway mortgage loan.
(6)Includes variable rate debt subject to interest rate cap arrangements with a total notional amount of $244,272 at our pro rata share. The interest rate cap arrangements have a weighted average strike rate of 4.16% and a weighted average remaining term of nine months.
Fair Value of Debt
The estimated fair value of our consolidated debt is calculated based on current market prices and discounted cash flows at the current rate at which similar loans would be made to borrowers with similar credit ratings for the remaining term of such debt. As of December 31, 2024, the estimated fair value of our consolidated debt was $7,990,000,000.
ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK - continued
Derivatives and Hedging
We utilize various financial instruments to mitigate the impact of interest rate fluctuations on our cash flows and earnings, including hedging strategies, depending on our analysis of the interest rate environment and the costs and risks of such strategies. The following table summarizes our consolidated hedging instruments, all of which hedge variable rate debt, as of December 31, 2024.
(Amounts in thousands)
Debt Balance Variable Rate Spread Notional Amount All-In Swapped Rate Expiration Date
Interest rate swaps:
555 California Street mortgage loan $ 1,200,000 S+205 $ 840,000 (1)
6.03% 05/26
770 Broadway mortgage loan 700,000 S+225 700,000 4.98% 07/27
PENN 11 mortgage loan 500,000 S+206 500,000 6.28% 10/25
Unsecured revolving credit facility 575,000 S+115 575,000 3.88% 08/27
Unsecured term loan: 800,000 S+130
In-place swap through 7/25 700,000 4.53% 07/25
In-place swap through 10/26 550,000 4.36% 10/26
In-place swap through 8/27 50,000 4.04% 08/27
100 West 33rd Street mortgage loan 480,000 S+185 480,000 5.26% 06/27
888 Seventh Avenue mortgage loan 258,057 S+180 200,000 4.76% 09/27
4 Union Square South mortgage loan 120,000 S+150 96,400 3.74% 01/25
435 Seventh Avenue mortgage loan 75,000 S+210 75,000 6.96% 04/26
Index Strike Rate
Interest rate caps:
1290 Avenue of the Americas mortgage loan(2)
950,000 S+162 950,000 1.00% 11/25
One Park Avenue mortgage loan 525,000 S+122 525,000 3.89% 03/25
150 West 34th Street mortgage loan 75,000 S+215 75,000 5.00% 02/26
____________________
(1)Represents our 70.0% share of the $1.2 billion mortgage loan.
(2)In connection with the arrangement, we made a $63,100 up-front payment in 2023, of which $18,930 was attributable to noncontrolling interests.
The following table summarizes our hedging instruments of our unconsolidated subsidiaries (shown at our pro rata ownership interest) as of December 31, 2024.
(Amounts in thousands and at share)
Debt Balance Variable Rate Spread Notional Amount All-In Swapped Rate Expiration Date
Interest rate swaps:
280 Park Avenue $ 537,500 S+178 $ 537,500 5.84% 09/28
731 Lexington Avenue retail condominium 97,200 S+151 97,200 1.76% 05/25
Index Strike Rate
Interest rate caps:
61 Ninth Avenue 75,543 S+146 75,543 4.39% 01/26
512 West 22nd Street 68,980 S+235 68,980 4.50% 06/25
Rego Park II 65,624 S+145 65,624 4.15% 12/25
Fashion Centre/Washington Tower 34,125 S+305 34,125 3.00% 05/25

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ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
Page
Number
Vornado Realty Trust
Report of Independent Registered Public Accounting Firm (PCAOB ID No. 34)
Consolidated Balance Sheets as of December 31, 2024 and 2023 62
Consolidated Statements of Income for the years ended December 31, 2024, 2023 and 2022 63
Consolidated Statements of Comprehensive Income for the years ended December 31, 2024, 2023 and 2022 64
Consolidated Statements of Changes in Equity for the years ended December 31, 2024, 2023 and 2022 65
Consolidated Statements of Cash Flows for the years ended December 31, 2024, 2023 and 2022 68
Vornado Realty L.P.
Report of Independent Registered Public Accounting Firm (PCAOB ID No. 34)
Consolidated Balance Sheets as of December 31, 2024 and 2023 72
Consolidated Statements of Income for the years ended December 31, 2024, 2023 and 2022 73
Consolidated Statements of Comprehensive Income for the years ended December 31, 2024, 2023 and 2022 74
Consolidated Statements of Changes in Equity for the years ended December 31, 2024, 2023 and 2022 75
Consolidated Statements of Cash Flows for the years ended December 31, 2024, 2023 and 2022 78
Vornado Realty Trust and Vornado Realty L.P.
Notes to Consolidated Financial Statements
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Shareholders and the Board of Trustees of Vornado Realty Trust
Opinion on the Financial Statements
We have audited the accompanying consolidated balance sheets of Vornado Realty Trust and subsidiaries (the “Company”) as of December 31, 2024 and 2023, the related consolidated statements of income, comprehensive income, changes in equity, and cash flows, for each of the three years in the period ended December 31, 2024, and the related notes and the schedule listed in the Index at Item 15 (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2024 and 2023, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2024, in conformity with accounting principles generally accepted in the United States of America.
We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company’s internal control over financial reporting as of December 31, 2024, based on criteria established in Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission and our report dated February 10, 2025, expressed an unqualified opinion on the Company’s internal control over financial reporting.
Basis for Opinion
These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on the Company’s financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.
Critical Audit Matter
The critical audit matter communicated below is a matter arising from the current-period audit of the financial statements that was communicated or required to be communicated to the audit committee and that (1) relates to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.
Real Estate Recoverability Assessment - Refer to Note 2 to the financial statements
Critical Audit Matter Description
The Company’s real estate properties are individually reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment exists when the carrying amount of an asset exceeds the aggregate projected future cash flows over the anticipated holding period on an undiscounted basis. The recoverability assessment is determined based on projected future cash flows that utilize capitalization rates and available market information. Preparation of the Company’s undiscounted cash flows requires management to make significant estimates and assumptions related to future market rental rates and capitalization rates.
We identified the recoverability assessment of real estate properties as a critical audit matter because of the significant estimates and assumptions related to future market rental rates and capitalization rates. Performing audit procedures to evaluate the reasonableness of these estimates and assumptions required a high degree of auditor judgment and an increased extent of effort, including the need to involve our fair value specialists.
How the Critical Audit Matter Was Addressed in the Audit
Our audit procedures related to the recoverability assessment of real estate properties included the following, among others:
•We tested the effectiveness of controls over management’s evaluation of recoverability of its real estate properties, including those over future market rental rates and capitalization rates used in the assessment.
•We evaluated the reasonableness of future market rental rates and capitalization rates used by management with independent market data, focusing on geographical location and property type. In addition, we developed ranges of independent estimates of future market rental rates and capitalization rates and compared those to the amounts used by management.
•We involved our fair value specialists in providing comparable market transaction details to further evaluate management’s selected future market rental rates and capitalization rates, as applicable.
•We evaluated the reasonableness of management’s projected future cash flow analyses by performing a retrospective analysis of the Company’s actual results compared to the prior projected future cash flow analyses.
•We evaluated whether the assumptions were consistent with evidence obtained in other areas of the audit.
/s/ DELOITTE & TOUCHE LLP
New York, New York
February 10, 2025
We have served as the Company’s auditor since 1976.
VORNADO REALTY TRUST
CONSOLIDATED BALANCE SHEETS
(Amounts in thousands, except unit, share and per share amounts) As of December 31,
2024 2023
ASSETS
Real estate, at cost:
Land $ 2,434,209 $ 2,436,221
Buildings and improvements 10,439,113 9,952,954
Development costs and construction in progress 1,097,395 1,281,076
Leasehold improvements and equipment 120,915 130,953
Total 14,091,632 13,801,204
Less accumulated depreciation and amortization (4,025,349) (3,752,827)
Real estate, net 10,066,283 10,048,377
Right-of-use assets 678,804 680,044
Cash and cash equivalents 733,947 997,002
Restricted cash 215,672 264,582
Tenant and other receivables 58,853 69,543
Investments in partially owned entities 2,691,478 2,610,558
Receivable arising from the straight-lining of rents 707,020 701,666
Deferred leasing costs, net of accumulated amortization of $268,532 and $249,347
354,882 355,010
Identified intangible assets, net of accumulated amortization of $75,002 and $98,589
118,215 127,082
Other assets 373,454 333,801
$ 15,998,608 $ 16,187,665
LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND EQUITY
Mortgages payable, net $ 5,676,014 $ 5,688,020
Senior unsecured notes, net 1,195,914 1,193,873
Unsecured term loan, net 795,948 794,559
Unsecured revolving credit facilities 575,000 575,000
Lease liabilities 749,759 732,859
Accounts payable and accrued expenses 374,013 411,044
Deferred revenue 28,424 32,199
Deferred compensation plan 114,580 105,245
Other liabilities 317,087 311,132
Total liabilities 9,826,739 9,843,931
Commitments and contingencies
Redeemable noncontrolling interests:
Class A units - 16,850,803 and 17,000,030 units outstanding
708,408 480,251
Series D cumulative redeemable preferred units - 141,400 units outstanding
3,535 3,535
Total redeemable noncontrolling partnership units 711,943 483,786
Redeemable noncontrolling interest in a consolidated subsidiary 122,715 154,662
Total redeemable noncontrolling interests 834,658 638,448
Shareholders' equity:
Preferred shares of beneficial interest: no par value per share; authorized 110,000,000 shares; issued and outstanding 48,789,180 and 48,792,902 shares
1,182,364 1,182,459
Common shares of beneficial interest: $0.04 par value per share; authorized 250,000,000 shares; issued and outstanding 190,846,580 and 190,390,703 shares
7,634 7,594
Additional capital 8,052,793 8,263,291
Earnings less than distributions (4,142,249) (4,009,395)
Accumulated other comprehensive income 57,700 65,115
Total shareholders' equity 5,158,242 5,509,064
Noncontrolling interests in consolidated subsidiaries 178,969 196,222
Total equity 5,337,211 5,705,286
$ 15,998,608 $ 16,187,665
See notes to the consolidated financial statements.
VORNADO REALTY TRUST
CONSOLIDATED STATEMENTS OF INCOME
(Amounts in thousands, except per share amounts) For the Year Ended December 31,
2024 2023 2022
REVENUES:
Rental revenues $ 1,568,806 $ 1,607,486 $ 1,607,685
Fee and other income 218,880 203,677 192,310
Total revenues 1,787,686 1,811,163 1,799,995
EXPENSES:
Operating (927,796) (905,158) (873,911)
Depreciation and amortization (447,500) (434,273) (504,502)
General and administrative (148,520) (162,883) (133,731)
(Expense) benefit from deferred compensation plan liability (12,638) (12,162) 9,617
Transaction related costs, impairment losses and other (5,242) (50,691) (31,722)
Total expenses (1,541,696) (1,565,167) (1,534,249)
Income (loss) from partially owned entities 112,464 38,689 (461,351)
Interest and other investment income, net 45,974 43,287 23,410
Income (loss) from deferred compensation plan assets 12,638 12,162 (9,617)
Interest and debt expense (390,269) (349,223) (279,765)
Net gains on disposition of wholly owned and partially owned assets 16,048 71,199 100,625
Income (loss) before income taxes 42,845 62,110 (360,952)
Income tax expense (22,729) (29,222) (21,660)
Net income (loss) 20,116 32,888 (382,612)
Less net loss (income) attributable to noncontrolling interests in:
Consolidated subsidiaries 51,131 75,967 5,737
Operating Partnership (860) (3,361) 30,376
Net income (loss) attributable to Vornado 70,387 105,494 (346,499)
Preferred share dividends (62,112) (62,116) (62,116)
NET INCOME (LOSS) attributable to common shareholders $ 8,275 $ 43,378 $ (408,615)
INCOME (LOSS) PER COMMON SHARE - BASIC:
Net income (loss) per common share $ 0.04 $ 0.23 $ (2.13)
Weighted average shares outstanding 190,539 191,005 191,775
INCOME (LOSS) PER COMMON SHARE - DILUTED:
Net income (loss) per common share $ 0.04 $ 0.23 $ (2.13)
Weighted average shares outstanding 196,626 191,856 191,775
See notes to consolidated financial statements.
VORNADO REALTY TRUST
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(Amounts in thousands) For the Year Ended December 31,
2024 2023 2022
Net income (loss) $ 20,116 $ 32,888 $ (382,612)
Other comprehensive (loss) income:
Other comprehensive (loss) income of nonconsolidated subsidiaries (6,992) (8,286) 18,874
Change in fair value of interest rate swaps and other 947 (112,051) 190,493
Comprehensive income (loss) 14,071 (87,449) (173,245)
Less comprehensive loss attributable to noncontrolling interests 48,876 85,665 19,247
Comprehensive income (loss) attributable to Vornado $ 62,947 $ (1,784) $ (153,998)
See notes to consolidated financial statements.
VORNADO REALTY TRUST
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
(Amounts in thousands, except per share amount) Common Shares Additional
Capital Earnings
Less Than
Distributions Accumulated
Other
Comprehensive Income Non-
controlling
Interests in
Consolidated
Subsidiaries Total
Equity
Preferred Shares
Shares Amount Shares Amount
Balance as of December 31, 2023 48,793 $ 1,182,459 190,391 $ 7,594 $ 8,263,291 $ (4,009,395) $ 65,115 $ 196,222 $ 5,705,286
Net income attributable to Vornado - - - - - 70,387 - - 70,387
Net loss attributable to nonredeemable noncontrolling interests in consolidated subsidiaries - - - - - - - (19,964) (19,964)
Dividends on common shares ($0.74 per share)
- - - - - (141,103) - - (141,103)
Dividends on preferred shares (see Note 10 for dividends per share amounts)
- - - - - (62,112) - - (62,112)
Common shares issued upon redemption of Class A units, at redemption value - - 449 18 15,894 - - - 15,912
Conversion of Series A preferred shares to common shares (4) (95) 7 - 95 - - - -
Contributions - - - - - - - 1,961 1,961
Distributions - - - - - - - (1,339) (1,339)
Other comprehensive loss of nonconsolidated subsidiaries - - - - - - (6,992) - (6,992)
Change in fair value of consolidated interest rate hedges and other - - - - - - 947 - 947
Redeemable Class A unit measurement adjustment - - - - (226,612) - 26 - (226,586)
Other comprehensive loss (income) attributable to noncontrolling interests in:
Operating Partnership - - - - - - 693 - 693
Consolidated subsidiaries - - - - - - (2,087) 2,087 -
Other - - - 22 125 (26) (2) 2 121
Balance as of December 31, 2024 48,789 $ 1,182,364 190,847 $ 7,634 $ 8,052,793 $ (4,142,249) $ 57,700 $ 178,969 $ 5,337,211
See notes to consolidated financial statements.
VORNADO REALTY TRUST
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY - CONTINUED
(Amounts in thousands, except per share amount) Common Shares Additional
Capital Earnings
Less Than
Distributions Accumulated
Other
Comprehensive Income Non-
controlling
Interests in
Consolidated
Subsidiaries Total
Equity
Preferred Shares
Shares Amount Shares Amount
Balance as of December 31, 2022 48,793 $ 1,182,459 191,867 $ 7,654 $ 8,369,228 $ (3,894,580) $ 174,967 $ 236,652 $ 6,076,380
Net income attributable to Vornado - - - - - 105,494 - - 105,494
Net loss attributable to nonredeemable noncontrolling interests in consolidated subsidiaries - - - - - - - (36,582) (36,582)
Dividends on common shares ($0.675 per share)
- - - - - (129,066) - - (129,066)
Dividends on preferred shares (see Note 10 for dividends per share amounts)
- - - - - (62,116) - - (62,116)
Common shares issued:
Upon redemption of Class A units, at redemption value - - 539 21 8,468 - - - 8,489
Under dividend reinvestment plan - - 11 - 146 - - - 146
Contributions - - - - - - - 24,033 24,033
Distributions - - - - - - - (21,526) (21,526)
Deferred compensation shares and options - - (2) - 321 (25) - - 296
Repurchase of common shares - - (2,024) (81) - (29,102) - - (29,183)
Other comprehensive loss of nonconsolidated subsidiaries - - - - - - (8,286) - (8,286)
Change in fair value of interest rate swaps and other - - - - - - (112,051) - (112,051)
Unearned 2020 Out-Performance Plan and 2019 Performance AO LTIP awards - - - - 20,668 - - - 20,668
Redeemable Class A unit measurement adjustment - - - - (135,540) - (2,574) - (138,114)
Other comprehensive loss attributable to noncontrolling interests in:
Operating Partnership - - - - - - 9,340 - 9,340
Consolidated subsidiaries - - - - - - 3,719 (3,719) -
Deconsolidation of partially owned entity - - - - - - - (2,636) (2,636)
Balance as of December 31, 2023 48,793 $ 1,182,459 190,391 $ 7,594 $ 8,263,291 $ (4,009,395) $ 65,115 $ 196,222 $ 5,705,286
See notes to consolidated financial statements.
VORNADO REALTY TRUST
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY - CONTINUED
(Amounts in thousands, except per share amounts) Common Shares Additional
Capital Earnings
Less Than
Distributions Accumulated
Other
Comprehensive
(Loss) Income Non-
controlling
Interests in
Consolidated
Subsidiaries Total
Equity
Preferred Shares
Shares Amount Shares Amount
Balance as of December 31, 2021 48,793 $ 1,182,459 191,724 $ 7,648 $ 8,143,093 $ (3,079,320) $ (17,534) $ 278,892 $ 6,515,238
Net loss attributable to Vornado - - - - - (346,499) - - (346,499)
Net income attributable to nonredeemable noncontrolling interests in consolidated subsidiaries - - - - - - - 3,931 3,931
Dividends on common shares ($2.12 per share)
- - - - - (406,562) - - (406,562)
Dividends on preferred shares (see Note 10 for dividends per share amounts)
- - - - - (62,116) - - (62,116)
Common shares issued:
Upon redemption of Class A units, at redemption value - - 117 5 3,519 - - - 3,524
Under employees' share option plan - - - - 7 - - - 7
Under dividend reinvestment plan - - 28 1 877 - - - 878
Contributions - - - - - - - 5,609 5,609
Distributions - - - - - - - (54,388) (54,388)
Deferred compensation shares and
options - - (2) - 588 (85) - - 503
Other comprehensive income of nonconsolidated subsidiaries - - - - - - 18,874 - 18,874
Change in fair value of interest rate swaps and other - - - - - - 190,494 - 190,494
Redeemable Class A unit measurement adjustment - - - - 221,145 - - - 221,145
Other comprehensive income attributable to noncontrolling interests in:
Operating Partnership - - - - - - (14,250) - (14,250)
Consolidated subsidiaries - - - - - - (2,616) 2,616 -
Other - - - - (1) 2 (1) (8) (8)
Balance as of December 31, 2022 48,793 $ 1,182,459 191,867 $ 7,654 $ 8,369,228 $ (3,894,580) $ 174,967 $ 236,652 $ 6,076,380
See notes to consolidated financial statements.
VORNADO REALTY TRUST
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Amounts in thousands) For the Year Ended December 31,
2024 2023 2022
Cash Flows from Operating Activities:
Net income (loss) $ 20,116 $ 32,888 $ (382,612)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization (including amortization of deferred financing costs) 469,423 457,574 526,306
Distributions of income from partially owned entities 142,880 172,873 184,501
Equity in net (income) loss of partially owned entities (112,464) (38,689) 461,351
Amortization of interest rate cap premiums 41,745 10,989 430
Stock-based compensation expense 30,172 43,201 29,249
Net gains on disposition of wholly owned and partially owned assets (16,048) (71,199) (100,625)
Change in deferred tax liability 13,008 17,020 14,005
Straight-lining of rents (5,086) (8,808) (46,177)
Amortization of below-market leases, net (3,035) (5,268) (5,178)
Real estate impairment losses - 45,007 19,098
Credit losses on investments - 8,269 -
Net realized and unrealized (gain) loss on real estate fund investments - (1,861) 2,589
Return of capital from real estate fund investments - 1,861 5,141
Other non-cash adjustments 13,995 9,874 3,532
Changes in operating assets and liabilities:
Tenant and other receivables 4,704 9,379 (4,437)
Prepaid assets (8,346) (12,854) 104,186
Other assets (74,420) (79,110) (34,615)
Lease liabilities 16,900 17,582 15,658
Accounts payable and accrued expenses (6,800) 10,723 5,718
Other liabilities 10,979 28,701 824
Net cash provided by operating activities 537,723 648,152 798,944
Cash Flows from Investing Activities:
Development costs and construction in progress (242,874) (552,701) (737,999)
Additions to real estate (222,739) (211,899) (159,796)
Investments in partially owned entities (115,357) (57,297) (33,172)
Investment in loan receivable (50,000) - -
Proceeds from sale of condominium units at 220 Central Park South 31,605 24,484 88,019
Proceeds from sales of real estate 2,000 123,519 373,264
Proceeds from maturities of U.S. Treasury bills - 468,598 597,499
Proceeds from repayment of participation in 150 West 34th Street mortgage loan - 105,000 -
Acquisitions of real estate and other - (33,145) (3,000)
Distributions of capital from partially owned entities - 18,869 34,417
Deconsolidation of cash and restricted cash held by a previously consolidated entity - (14,216) -
Purchase of U.S. Treasury bills - - (1,066,096)
Net cash used in investing activities (597,365) (128,788) (906,864)
See notes to consolidated financial statements.
VORNADO REALTY TRUST
CONSOLIDATED STATEMENTS OF CASH FLOWS - CONTINUED
(Amounts in thousands) For the Year Ended December 31,
2024 2023 2022
Cash Flows from Financing Activities:
Dividends paid on common shares $ (141,103) $ (129,066) $ (406,562)
Repayments of borrowings (97,439) (148,000) (1,251,373)
Proceeds from borrowings 75,000 - 1,029,773
Dividends paid on preferred shares (62,112) (62,116) (62,116)
Distributions to noncontrolling interests (18,156) (38,970) (84,699)
Deferred financing costs (13,870) (4,424) (32,706)
Contributions from noncontrolling interests 5,300 132,701 5,609
Repurchase of common shares - (29,183) -
Other financing activity, net 57 121 800
Net cash used in financing activities (252,323) (278,937) (801,274)
Net (decrease) increase in cash and cash equivalents and restricted cash (311,965) 240,427 (909,194)
Cash and cash equivalents and restricted cash at beginning of period 1,261,584 1,021,157 1,930,351
Cash and cash equivalents and restricted cash at end of period $ 949,619 $ 1,261,584 $ 1,021,157
Reconciliation of Cash and Cash Equivalents and Restricted Cash:
Cash and cash equivalents at beginning of period $ 997,002 $ 889,689 $ 1,760,225
Restricted cash at beginning of period 264,582 131,468 170,126
Cash and cash equivalents and restricted cash at beginning of period $ 1,261,584 $ 1,021,157 $ 1,930,351
Cash and cash equivalents at end of period $ 733,947 $ 997,002 $ 889,689
Restricted cash at end of period 215,672 264,582 131,468
Cash and cash equivalents and restricted cash at end of period $ 949,619 $ 1,261,584 $ 1,021,157
Supplemental Disclosure of Cash Flow Information:
Cash payments for interest (excluding capitalized interest) and interest rate cap premiums $ 322,774 $ 381,410 $ 252,371
Cash payments for income taxes $ 7,608 $ 10,365 $ 7,947
Non-Cash Information:
Redeemable Class A unit measurement adjustment $ (226,586) $ (138,114) $ 221,145
Write-off of fully depreciated assets (122,548) (82,343) (278,561)
Accrued capital expenditures included in accounts payable and accrued expenses 39,784 52,091 104,750
Reclassification of assets held for sale (included in "other assets") 15,279 - -
Change in fair value of consolidated interest rate hedges and other 947 (112,051) 190,494
Initial investment in Sunset Pier 94 Joint Venture upon contribution of leasehold interest - 50,090 -
Decrease in assets and liabilities resulting from the deconsolidation of Pier 94:
Real estate - 21,693 -
Right-of-use assets - 7,081 -
Lease liabilities - (20,692) -
Additional estimated lease liability arising from the recognition of right-of-use asset - - 350,000
Reclassification of condominium units from "development costs and construction in progress" to "other assets" - - 32,604
See notes to consolidated financial statements.
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Partners of Vornado Realty L.P. and the Board of Trustees of Vornado Realty Trust
Opinion on the Financial Statements
We have audited the accompanying consolidated balance sheets of Vornado Realty L.P. and subsidiaries (the “Partnership”) as of December 31, 2024 and 2023, the related consolidated statements of income, comprehensive income, changes in equity, and cash flows, for each of the three years in the period ended December 31, 2024, and the related notes and the schedule listed in the Index at Item 15 (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Partnership as of December 31, 2024 and 2023, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2024, in conformity with accounting principles generally accepted in the United States of America.
We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Partnership’s internal control over financial reporting as of December 31, 2024, based on criteria established in Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission and our report dated February 10, 2025, expressed an unqualified opinion on the Partnership’s internal control over financial reporting.
Basis for Opinion
These financial statements are the responsibility of the Partnership’s management. Our responsibility is to express an opinion on the Partnership’s financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Partnership in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.
Critical Audit Matter
The critical audit matter communicated below is a matter arising from the current-period audit of the financial statements that was communicated or required to be communicated to the audit committee and that (1) relates to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.
Real Estate Recoverability Assessment - Refer to Note 2 to the financial statements
Critical Audit Matter Description
The Partnership’s real estate properties are individually reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment exists when the carrying amount of an asset exceeds the aggregate projected future cash flows over the anticipated holding period on an undiscounted basis. The recoverability assessment is determined based on projected future cash flows that utilize capitalization rates and available market information. Preparation of the Partnership’s undiscounted cash flows requires management to make significant estimates and assumptions related to future market rental rates and capitalization rates.
We identified the recoverability assessment of real estate properties as a critical audit matter because of the significant estimates and assumptions related to future market rental rates and capitalization rates. Performing audit procedures to evaluate the reasonableness of these estimates and assumptions required a high degree of auditor judgment and an increased extent of effort, including the need to involve our fair value specialists.
How the Critical Audit Matter Was Addressed in the Audit
Our audit procedures related to the recoverability assessment of real estate properties included the following, among others:
•We tested the effectiveness of controls over management’s evaluation of recoverability of its real estate properties, including those over future market rental rates and capitalization rates used in the assessment.
•We evaluated the reasonableness of future market rental rates and capitalization rates used by management with independent market data, focusing on geographical location and property type. In addition, we developed ranges of independent estimates of future market rental rates and capitalization rates and compared those to the amounts used by management.
•We involved our fair value specialists in providing comparable market transaction details to further evaluate management’s selected future market rental rates and capitalization rates, as applicable.
•We evaluated the reasonableness of management’s projected future cash flow analyses by performing a retrospective analysis of the Partnership’s actual results compared to the prior projected future cash flow analyses.
•We evaluated whether the assumptions were consistent with evidence obtained in other areas of the audit.
/s/ DELOITTE & TOUCHE LLP
New York, New York
February 10, 2025
We have served as the Partnership’s auditor since 1997.
VORNADO REALTY L.P.
CONSOLIDATED BALANCE SHEETS
(Amounts in thousands, except unit amounts) As of December 31,
2024 2023
ASSETS
Real estate, at cost:
Land $ 2,434,209 $ 2,436,221
Buildings and improvements 10,439,113 9,952,954
Development costs and construction in progress 1,097,395 1,281,076
Leasehold improvements and equipment 120,915 130,953
Total 14,091,632 13,801,204
Less accumulated depreciation and amortization (4,025,349) (3,752,827)
Real estate, net 10,066,283 10,048,377
Right-of-use assets 678,804 680,044
Cash and cash equivalents 733,947 997,002
Restricted cash 215,672 264,582
Tenant and other receivables 58,853 69,543
Investments in partially owned entities 2,691,478 2,610,558
Receivable arising from the straight-lining of rents 707,020 701,666
Deferred leasing costs, net of accumulated amortization of $268,532 and $249,347
354,882 355,010
Identified intangible assets, net of accumulated amortization of $75,002 and $98,589
118,215 127,082
Other assets 373,454 333,801
$ 15,998,608 $ 16,187,665
LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND EQUITY
Mortgages payable, net $ 5,676,014 $ 5,688,020
Senior unsecured notes, net 1,195,914 1,193,873
Unsecured term loan, net 795,948 794,559
Unsecured revolving credit facilities 575,000 575,000
Lease liabilities 749,759 732,859
Accounts payable and accrued expenses 374,013 411,044
Deferred revenue 28,424 32,199
Deferred compensation plan 114,580 105,245
Other liabilities 317,087 311,132
Total liabilities 9,826,739 9,843,931
Commitments and contingencies
Redeemable noncontrolling interests:
Class A units - 16,850,803 and 17,000,030 units outstanding
708,408 480,251
Series D cumulative redeemable preferred units - 141,400 units outstanding
3,535 3,535
Total redeemable noncontrolling partnership units 711,943 483,786
Redeemable noncontrolling interest in a consolidated subsidiary 122,715 154,662
Total redeemable noncontrolling interests 834,658 638,448
Partners' equity:
Partners' capital 9,242,791 9,453,344
Earnings less than distributions (4,142,249) (4,009,395)
Accumulated other comprehensive income 57,700 65,115
Total partners' equity 5,158,242 5,509,064
Noncontrolling interests in consolidated subsidiaries 178,969 196,222
Total equity 5,337,211 5,705,286
$ 15,998,608 $ 16,187,665
See notes to the consolidated financial statements.
VORNADO REALTY L.P.
CONSOLIDATED STATEMENTS OF INCOME
(Amounts in thousands, except per unit amounts) For the Year Ended December 31,
2024 2023 2022
REVENUES:
Rental revenues $ 1,568,806 $ 1,607,486 $ 1,607,685
Fee and other income 218,880 203,677 192,310
Total revenues 1,787,686 1,811,163 1,799,995
EXPENSES:
Operating (927,796) (905,158) (873,911)
Depreciation and amortization (447,500) (434,273) (504,502)
General and administrative (148,520) (162,883) (133,731)
(Expense) benefit from deferred compensation plan liability (12,638) (12,162) 9,617
Transaction related costs, impairment losses and other (5,242) (50,691) (31,722)
Total expenses (1,541,696) (1,565,167) (1,534,249)
Income (loss) from partially owned entities 112,464 38,689 (461,351)
Interest and other investment income, net 45,974 43,287 23,410
Income (loss) from deferred compensation plan assets 12,638 12,162 (9,617)
Interest and debt expense (390,269) (349,223) (279,765)
Net gains on disposition of wholly owned and partially owned assets 16,048 71,199 100,625
Income (loss) before income taxes 42,845 62,110 (360,952)
Income tax expense (22,729) (29,222) (21,660)
Net income (loss) 20,116 32,888 (382,612)
Less net loss attributable to noncontrolling interests in consolidated subsidiaries 51,131 75,967 5,737
Net income (loss) attributable to Vornado Realty L.P. 71,247 108,855 (376,875)
Preferred unit distributions (62,227) (62,231) (62,231)
NET INCOME (LOSS) attributable to Class A unitholders $ 9,020 $ 46,624 $ (439,106)
INCOME (LOSS) PER CLASS A UNIT - BASIC:
Net income (loss) per Class A unit $ 0.03 $ 0.22 $ (2.15)
Weighted average units outstanding 204,981 205,105 205,315
INCOME (LOSS) PER CLASS A UNIT - DILUTED:
Net income (loss) per Class A unit $ 0.03 $ 0.22 $ (2.15)
Weighted average units outstanding 211,068 205,956 205,315
See notes to consolidated financial statements.
VORNADO REALTY L.P.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(Amounts in thousands) For the Year Ended December 31,
2024 2023 2022
Net income (loss) $ 20,116 $ 32,888 $ (382,612)
Other comprehensive (loss) income:
Other comprehensive (loss) income of nonconsolidated subsidiaries (6,992) (8,286) 18,874
Change in fair value of interest rate swaps and other 947 (112,051) 190,493
Comprehensive income (loss) 14,071 (87,449) (173,245)
Less comprehensive loss attributable to noncontrolling interests in consolidated subsidiaries
49,043 79,686 3,121
Comprehensive income (loss) attributable to Vornado Realty L.P. $ 63,114 $ (7,763) $ (170,124)
See notes to consolidated financial statements.
VORNADO REALTY L.P.
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
(Amounts in thousands, except per unit amount) Non-
controlling
Interests in
Consolidated
Subsidiaries
Preferred Units Class A Units
Owned by Vornado Earnings
Less Than
Distributions Accumulated
Other
Comprehensive Income Total
Equity
Units Amount Units Amount
Balance as of December 31, 2023 48,793 $ 1,182,459 190,391 $ 8,270,885 $ (4,009,395) $ 65,115 $ 196,222 $ 5,705,286
Net income attributable to Vornado Realty L.P. - - - - 71,247 - - 71,247
Net income attributable to redeemable partnership units - - - - (860) - - (860)
Net loss attributable to nonredeemable noncontrolling interests in consolidated subsidiaries - - - - - - (19,964) (19,964)
Distributions to Vornado ($0.74 per unit)
- - - - (141,103) - - (141,103)
Distributions to preferred unitholders (see Note 10 for distributions per unit amounts)
- - - - (62,112) - - (62,112)
Class A units redeemed for common shares - - 449 15,912 - - - 15,912
Conversion of Series A preferred units to
common shares
(4) (95) 7 95 - - - -
Contributions - - - - - - 1,961 1,961
Distributions - - - - - - (1,339) (1,339)
Other comprehensive loss of nonconsolidated subsidiaries - - - - - (6,992) - (6,992)
Change in fair value of consolidated interest rate hedges and other - - - - - 947 - 947
Redeemable Class A unit measurement adjustment - - - (226,612) - 26 - (226,586)
Other comprehensive loss (income) attributable to noncontrolling interests in:
Redeemable partnership units - - - - - 693 - 693
Consolidated subsidiaries - - - - - (2,087) 2,087 -
Other - - - 147 (26) (2) 2 121
Balance as of December 31, 2024 48,789 $ 1,182,364 190,847 $ 8,060,427 $ (4,142,249) $ 57,700 $ 178,969 $ 5,337,211
See notes to consolidated financial statements.
VORNADO REALTY L.P.
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY - CONTINUED
(Amounts in thousands, except per unit amount) Non-
controlling
Interests in
Consolidated
Subsidiaries
Preferred Units Class A Units
Owned by Vornado Earnings
Less Than
Distributions Accumulated
Other
Comprehensive Income Total
Equity
Units Amount Units Amount
Balance as of December 31, 2022 48,793 $ 1,182,459 191,867 $ 8,376,882 $ (3,894,580) $ 174,967 $ 236,652 $ 6,076,380
Net income attributable to Vornado Realty L.P. - - - - 108,855 - - 108,855
Net income attributable to redeemable partnership units - - - - (3,361) - - (3,361)
Net loss attributable to nonredeemable noncontrolling interests in consolidated subsidiaries - - - - - - (36,582) (36,582)
Distributions to Vornado ($0.675 per unit)
- - - - (129,066) - - (129,066)
Distributions to preferred unitholders (see Note 10 for distributions per unit amounts)
- - - - (62,116) - - (62,116)
Class A units issued to Vornado:
Upon redemption of redeemable Class A units, at redemption value - - 539 8,489 - - - 8,489
Under Vornado's dividend reinvestment plan - - 11 146 - - - 146
Contributions - - - - - - 24,033 24,033
Distributions - - - - - - (21,526) (21,526)
Deferred compensation units and options - - (2) 321 (25) - - 296
Repurchase of Class A units owned by Vornado - - (2,024) (81) (29,102) - - (29,183)
Other comprehensive loss of nonconsolidated subsidiaries - - - - - (8,286) - (8,286)
Change in fair value of interest rate swaps and other - - - - - (112,051) - (112,051)
Unearned 2020 Out-Performance Plan and 2019 Performance AO LTIP awards - - - 20,668 - - - 20,668
Redeemable Class A unit measurement adjustment - - - (135,540) - (2,574) - (138,114)
Other comprehensive income attributable to noncontrolling interests in:
Redeemable partnership units - - - - - 9,340 - 9,340
Consolidated subsidiaries - - - - - 3,719 (3,719) -
Deconsolidation of partially owned entity - - - - - - (2,636) (2,636)
Balance as of December 31, 2023 48,793 $ 1,182,459 190,391 $ 8,270,885 $ (4,009,395) $ 65,115 $ 196,222 $ 5,705,286
See notes to consolidated financial statements.
VORNADO REALTY L.P.
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY - CONTINUED
(Amounts in thousands, except per unit amounts) Non-
controlling
Interests in
Consolidated
Subsidiaries
Preferred Units Class A Units
Owned by Vornado Earnings
Less Than
Distributions Accumulated
Other
Comprehensive
(Loss) Income Total
Equity
Units Amount Units Amount
Balance as of December 31, 2021 48,793 $ 1,182,459 191,724 $ 8,150,741 $ (3,079,320) $ (17,534) $ 278,892 $ 6,515,238
Net loss attributable to Vornado Realty L.P. - - - - (376,875) - - (376,875)
Net loss attributable to redeemable partnership units - - - - 30,376 - - 30,376
Net income attributable to nonredeemable noncontrolling interests in consolidated subsidiaries - - - - - - 3,931 3,931
Distributions to Vornado ($2.12 per unit)
- - - - (406,562) - - (406,562)
Distributions to preferred unitholders (see Note 10 for distributions per unit amounts)
- - - - (62,116) - - (62,116)
Class A units issued to Vornado:
Upon redemption of redeemable Class A units, at redemption value - - 117 3,524 - - - 3,524
Under Vornado's employees' share option plan - - - 7 - - - 7
Under Vornado's dividend reinvestment plan - - 28 878 - - - 878
Contributions - - - - - - 5,609 5,609
Distributions - - - - - - (54,388) (54,388)
Deferred compensation units and options - - (2) 588 (85) - - 503
Other comprehensive income of nonconsolidated subsidiaries - - - - - 18,874 - 18,874
Change in fair value of interest rate swaps and other - - - - - 190,494 - 190,494
Redeemable Class A unit measurement adjustment - - - 221,145 - - - 221,145
Other comprehensive income attributable to noncontrolling interests in:
Redeemable partnership units - - - - - (14,250) - (14,250)
Consolidated subsidiaries - - - - - (2,616) 2,616 -
Other - - - (1) 2 (1) (8) (8)
Balance as of December 31, 2022 48,793 $ 1,182,459 191,867 $ 8,376,882 $ (3,894,580) $ 174,967 $ 236,652 $ 6,076,380
See notes to consolidated financial statements.
VORNADO REALTY L.P.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Amounts in thousands) For the Year Ended December 31,
2024 2023 2022
Cash Flows from Operating Activities:
Net income (loss) $ 20,116 $ 32,888 $ (382,612)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization (including amortization of deferred financing costs) 469,423 457,574 526,306
Distributions of income from partially owned entities 142,880 172,873 184,501
Equity in net (income) loss of partially owned entities (112,464) (38,689) 461,351
Amortization of interest rate cap premiums 41,745 10,989 430
Stock-based compensation expense 30,172 43,201 29,249
Net gains on disposition of wholly owned and partially owned assets (16,048) (71,199) (100,625)
Change in deferred tax liability 13,008 17,020 14,005
Straight-lining of rents (5,086) (8,808) (46,177)
Amortization of below-market leases, net (3,035) (5,268) (5,178)
Real estate impairment losses - 45,007 19,098
Credit losses on investments - 8,269 -
Net realized and unrealized (gain) loss on real estate fund investments - (1,861) 2,589
Return of capital from real estate fund investments - 1,861 5,141
Other non-cash adjustments 13,995 9,874 3,532
Changes in operating assets and liabilities:
Tenant and other receivables 4,704 9,379 (4,437)
Prepaid assets (8,346) (12,854) 104,186
Other assets (74,420) (79,110) (34,615)
Lease liabilities 16,900 17,582 15,658
Accounts payable and accrued expenses (6,800) 10,723 5,718
Other liabilities 10,979 28,701 824
Net cash provided by operating activities 537,723 648,152 798,944
Cash Flows from Investing Activities:
Development costs and construction in progress (242,874) (552,701) (737,999)
Additions to real estate (222,739) (211,899) (159,796)
Investments in partially owned entities (115,357) (57,297) (33,172)
Investment in loan receivable (50,000) - -
Proceeds from sale of condominium units at 220 Central Park South 31,605 24,484 88,019
Proceeds from sales of real estate 2,000 123,519 373,264
Proceeds from maturities of U.S. Treasury bills - 468,598 597,499
Proceeds from repayment of participation in 150 West 34th Street mortgage loan - 105,000 -
Acquisitions of real estate and other - (33,145) (3,000)
Distributions of capital from partially owned entities - 18,869 34,417
Deconsolidation of cash and restricted cash held by a previously consolidated entity - (14,216) -
Purchase of U.S. Treasury bills - - (1,066,096)
Net cash used in investing activities (597,365) (128,788) (906,864)
See notes to consolidated financial statements.
VORNADO REALTY L.P.
CONSOLIDATED STATEMENTS OF CASH FLOWS - CONTINUED
(Amounts in thousands) For the Year Ended December 31,
2024 2023 2022
Cash Flows from Financing Activities:
Distributions to Vornado $ (141,103) $ (129,066) $ (406,562)
Repayments of borrowings (97,439) (148,000) (1,251,373)
Proceeds from borrowings 75,000 - 1,029,773
Distributions to preferred unitholders (62,112) (62,116) (62,116)
Distributions to redeemable security holders and noncontrolling interests in consolidated subsidiaries (18,156) (38,970) (84,699)
Deferred financing costs (13,870) (4,424) (32,706)
Contributions from noncontrolling interests in consolidated subsidiaries 5,300 132,701 5,609
Repurchase of Class A units owned by Vornado - (29,183) -
Other financing activity, net 57 121 800
Net cash used in financing activities (252,323) (278,937) (801,274)
Net (decrease) increase in cash and cash equivalents and restricted cash (311,965) 240,427 (909,194)
Cash and cash equivalents and restricted cash at beginning of period 1,261,584 1,021,157 1,930,351
Cash and cash equivalents and restricted cash at end of period $ 949,619 $ 1,261,584 $ 1,021,157
Reconciliation of Cash and Cash Equivalents and Restricted Cash:
Cash and cash equivalents at beginning of period $ 997,002 $ 889,689 $ 1,760,225
Restricted cash at beginning of period 264,582 131,468 170,126
Cash and cash equivalents and restricted cash at beginning of period $ 1,261,584 $ 1,021,157 $ 1,930,351
Cash and cash equivalents at end of period $ 733,947 $ 997,002 $ 889,689
Restricted cash at end of period 215,672 264,582 131,468
Cash and cash equivalents and restricted cash at end of period $ 949,619 $ 1,261,584 $ 1,021,157
Supplemental Disclosure of Cash Flow Information:
Cash payments for interest (excluding capitalized interest) and interest rate cap premiums $ 322,774 $ 381,410 $ 252,371
Cash payments for income taxes $ 7,608 $ 10,365 $ 7,947
Non-Cash Information:
Redeemable Class A unit measurement adjustment $ (226,586) $ (138,114) $ 221,145
Write-off of fully depreciated assets (122,548) (82,343) (278,561)
Accrued capital expenditures included in accounts payable and accrued expenses 39,784 52,091 104,750
Reclassification of assets held for sale (included in "other assets") 15,279 - -
Change in fair value of consolidated interest rate hedges and other 947 (112,051) 190,494
Initial investment in Sunset Pier 94 Joint Venture upon contribution of leasehold interest - 50,090 -
Decrease in assets and liabilities resulting from the deconsolidation of Pier 94: -
Real estate - 21,693 -
Right-of-use assets - 7,081 -
Lease liabilities - (20,692) -
Additional estimated lease liability arising from the recognition of right-of-use asset - - 350,000
Reclassification of condominium units from "development costs and construction in progress" to "other assets" - - 32,604
See notes to consolidated financial statements.
VORNADO REALTY TRUST AND VORNADO REALTY L.P.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
1. Organization and Business
Vornado Realty Trust (“Vornado”) is a fully-integrated real estate investment trust (“REIT”) and conducts its business through, and substantially all of its interests in properties are held by, Vornado Realty L.P. (the “Operating Partnership”), a Delaware limited partnership. Accordingly, Vornado’s cash flow and ability to pay dividends to its shareholders are dependent upon the cash flow of the Operating Partnership and the ability of its direct and indirect subsidiaries to first satisfy their obligations to creditors. Vornado is the sole general partner of and owned approximately 91.4% of the common limited partnership interest in the Operating Partnership as of December 31, 2024. All references to the “Company,” “we,” “us” and “our” mean, collectively, Vornado, the Operating Partnership and those subsidiaries consolidated by Vornado.
We currently own all or portions of:
New York:
•56 Manhattan operating properties consisting of:
•20.1 million square feet of office space in 30 of the properties;
•2.4 million square feet of street retail space in 49 of the properties;
•1,330 units in two Manhattan residential properties;
•Multiple development sites, including 350 Park Avenue, Sunset Pier 94 Studios, the Hotel Pennsylvania site (PENN 15) and other PENN District sites;
•A 32.4% interest in Alexander’s, Inc. (“Alexander’s”) (NYSE: ALX), which owns five properties in the greater New York metropolitan area, including 731 Lexington Avenue, the 1.1 million square foot Bloomberg, L.P. headquarters building, and The Alexander, a 312-unit apartment tower in Queens;
•Signage throughout the PENN District and Times Square; and
•Building Maintenance Services LLC ("BMS"), a wholly owned subsidiary, which provides cleaning and security services for our buildings and third parties.
Other Real Estate and Investments:
•The 3.7 million square foot THE MART in Chicago;
•A 70% controlling interest in 555 California Street, a three-building office complex in San Francisco’s financial district aggregating 1.8 million square feet; and
•Other real estate and investments.
2. Basis of Presentation and Significant Accounting Policies
Basis of Presentation
The accompanying consolidated financial statements include the accounts of Vornado and the Operating Partnership and their consolidated subsidiaries. All inter-company amounts have been eliminated. Our consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”), which require us to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates. In addition, certain prior year balances have been reclassified in order to conform to the current period presentation.
Recently Issued Accounting Literature
In November 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures (“ASU 2023-07”). ASU 2023-07 aims to improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. ASU 2023-07 requires disclosure of significant segment expenses that are regularly provided to the chief operating decision maker and included within each reported measure of segment profit or loss. The update also requires disclosure regarding the chief operating decision maker and expands the interim segment disclosure requirements. ASU 2023-07 is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted. We adopted this update effective December 15, 2024. The adoption of ASU 2023-07 did not have a material impact on our disclosures.
In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures (“ASU 2023-09”). ASU 2023-09 requires entities to disclose additional information with respect to the effective tax rate reconciliation and to disclose the disaggregation by jurisdiction of income tax expense and income taxes paid. ASU 2023-09 is effective for fiscal years beginning after December 15, 2024, with early adoption permitted. We are currently evaluating the impact of ASU 2023-09 on our consolidated financial statements.
VORNADO REALTY TRUST AND VORNADO REALTY L.P.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
2. Basis of Presentation and Significant Accounting Policies - continued
Recently Issued Accounting Literature - continued
In November 2024, the FASB issued ASU 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses (“ASU 2024-03”), and in January 2025, the FASB issued ASU 2025-01, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Clarifying the Effective Date ("ASU 2025-01"). ASU 2024-03 requires additional disclosure of the nature of expenses included in the income statement as well as disclosures about specific types of expenses included in the expense captions presented in the income statement. ASU 2024-03, as clarified by ASU 2025-01, is effective for fiscal years beginning after December 15, 2026, and interim periods within fiscal years beginning after December 15, 2027, with early adoption permitted. We are currently evaluating the impact of these standards on our consolidated financial statements.
Significant Accounting Policies
Real Estate: Real estate is carried at cost, net of accumulated depreciation and amortization. Betterments, major renewals and certain costs directly related to the improvement and leasing of real estate are capitalized. Maintenance and repairs are expensed as incurred. For redevelopment of existing operating properties, the net book value of the existing property under redevelopment plus the cost for the construction and improvements incurred in connection with the redevelopment, including interest and debt expense, are capitalized to the extent the capitalized costs of the property do not exceed the estimated fair value of the redeveloped property when complete. If the cost of the redeveloped property, including the net book value of the existing property, exceeds the estimated fair value of the redeveloped property, the excess is charged to expense. Depreciation is recognized on a straight-line basis over the estimated useful lives of these assets which range from 7 to 40 years. Tenant allowances are amortized on a straight-line basis over the lives of the related leases, which approximate the useful lives of the assets.
Upon the acquisition of real estate, we assess whether the transaction should be accounted for as an asset acquisition or as a business combination. Acquisitions of integrated sets of assets and activities that do not meet the definition of a business are accounted for as asset acquisitions. Our acquisitions of real estate generally will not meet the definition of a business because substantially all of the fair value is concentrated in a single identifiable asset or group of similar identifiable assets (i.e. land, buildings, and related identified intangible assets).
We assess the fair value of acquired assets (including land, buildings and improvements, identified intangibles, such as acquired above and below-market leases, acquired in-place leases and tenant relationships) and acquired liabilities and we allocate the purchase price based on these assessments which are on a relative fair value basis. We assess fair value based on estimated cash flow projections that utilize appropriate discount and capitalization rates and available market information. Estimates of future cash flows are based on a number of factors including historical operating results, known trends, and market/economic conditions. We amortize identified intangibles that have finite lives over the period they are expected to contribute directly or indirectly to the future cash flows of the property or business acquired.
Our properties, including any related right-of-use ("ROU") assets and intangible assets, are individually reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment exists when the carrying amount of an asset exceeds the aggregate projected future cash flows over the anticipated holding period on an undiscounted basis. An impairment loss is measured based on the excess of the property’s carrying amount over its estimated fair value. Impairment analyses are based on information available at the time the analyses are prepared. Estimates of future cash flows are subjective and are based, in part, on assumptions regarding future rental revenues, operating expenses, capital expenditures, discount rates and capitalization rates which could differ materially from actual results.
VORNADO REALTY TRUST AND VORNADO REALTY L.P.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
2. Basis of Presentation and Significant Accounting Policies - continued
Significant Accounting Policies - continued
Partially Owned Entities: We consolidate entities in which we have a controlling financial interest. In determining whether we have a controlling financial interest in a partially owned entity and the requirement to consolidate the accounts of that entity, we consider (i) whether the entity is a variable interest entity (“VIE”) in which we are the primary beneficiary or (ii) whether the entity is a voting interest entity in which we have a majority of the voting interests of the entity. We are deemed to be the primary beneficiary of a VIE when we have (i) the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance and (ii) the obligation to absorb losses or receive benefits that could potentially be significant to the VIE. We generally do not control a partially owned entity if the approval of all of the partners/members is contractually required with respect to decisions that most significantly impact the performance of the partially owned entity. This includes decisions regarding operating/capital budgets, and the placement of new or additional financing secured by the assets of the venture, among others. We account for investments under the equity method when the requirements for consolidation are not met, and we have significant influence over the operations of the investee. Equity method investments are initially recorded at cost and subsequently adjusted for our share of net income or loss and cash contributions and distributions each period. Equity investments that do not qualify for consolidation or equity method accounting are recorded at fair value in accordance with ASC Topic 321, Investments-Equity Securities ("ASC 321") or, if fair value is not readily determinable, are initially recognized at cost and subsequently remeasured if there is an orderly transaction in an identical or similar investment of the same issuer or if the investment is impaired.
Investments in unconsolidated partially owned entities are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recorded when there is a decline in the fair value of an investment below its carrying value and we conclude that the decline is other-than-temporary during our intended holding period. An impairment loss is measured based on the excess of the carrying amount of an investment over its estimated fair value. Impairment analyses are based on information available at the time the analyses are prepared. Estimates of future cash flows are subjective and are based, in part, on assumptions regarding future rental revenues, operating expenses, capital expenditures, discount rates and capitalization rates which could differ materially from actual results.
Cash and Cash Equivalents: Cash and cash equivalents consist of highly liquid investments with original maturities of three months or less and are carried at cost, which approximates fair value due to their short-term maturities. The majority of our cash and cash equivalents consists of (i) deposits at major commercial banks, which may at times exceed the Federal Deposit Insurance Corporation limit and (ii) Certificate of Deposits placed through an Account Registry Service.
Restricted Cash: Restricted cash consists of cash escrowed under loan agreements (including for debt service, real estate taxes, property insurance, leasing costs and capital improvements), security deposits, cash restricted for the purposes of facilitating a Section 1031 Like-Kind exchange and cash restricted in connection with our deferred compensation plan.
Deferred Charges: Direct financing costs are deferred and amortized on a straight-line basis, which approximates the effective interest rate method, over the terms of the related agreements as a component of interest expense. Direct and incremental costs related to successful leasing activities are capitalized and amortized on a straight-line basis over the lives of the related leases.
VORNADO REALTY TRUST AND VORNADO REALTY L.P.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
2. Basis of Presentation and Significant Accounting Policies - continued
Significant Accounting Policies - continued
Revenue Recognition:
•Rental revenues include revenues from the leasing of space at our properties to tenants, trade shows, tenant services and parking garage revenues.
•Revenues from the leasing of space at our properties to tenants include (i) lease components, including fixed and variable lease payments, and nonlease components which include reimbursement of common area maintenance expenses, and (ii) reimbursement of real estate taxes and insurance expenses. As lessor, we have elected to combine the lease and nonlease components of our operating lease agreements and account for the components as a single lease component in accordance with ASC Topic 842, Leases (“ASC 842”).
•Revenues from fixed lease payments for operating leases are recognized on a straight-line basis over the non-cancelable term of the lease, together with renewal options that are reasonably certain of being exercised. We commence revenue recognition when the tenant takes possession of the leased space and the leased space is substantially ready for its intended use.
•Revenues derived from the reimbursement of real estate taxes, insurance expenses and common area maintenance expenses are variable, and are generally recognized in the same period as the related expenses are incurred.
•We recognize amortization of acquired below-market leases as an increase to rental revenues and amortization of acquired above-market leases as a decrease to rental revenues over the term of the lease (see Note 7 - Identified Intangible Assets and Liabilities).
•Revenues from the operation of trade shows at our properties, primarily derived from booth rentals, are recognized when the trade show booths are made available for use by the exhibitors, in accordance with ASC 842.
•Revenues derived from sub-metered electric, service elevator, trash removal and other services provided to our tenants at their request are recognized as the services are transferred in accordance with ASC Topic 606, Revenue from Contracts with Customers ("ASC 606").
•Revenues derived from the operations of our parking facilities, which charge hourly or monthly fees to provide parking services to customers, are recognized as the services are transferred in accordance with ASC 606.
•We classify revenues derived from management, leasing and other contractual agreements (including BMS cleaning, engineering and security services) with third parties or with partially owned entities as “fee and other income” and recognize revenue as the services are transferred in accordance with ASC 606.
We evaluate on an individual lease basis whether it is probable that we will collect substantially all amounts due from our tenants and recognize changes in the collectability assessment of our operating leases as adjustments to rental revenue. Management exercises judgment in assessing collectability of tenant receivables and considers payment history, current credit status and publicly available information about the financial condition of the tenant, and other factors. Tenant receivables, including receivables arising from the straight-lining of rents, are written off when management deems that the collectability of substantially all future lease payments from a specific lease is not probable of collection, at which point, the Company will limit future rental revenues to cash received.
VORNADO REALTY TRUST AND VORNADO REALTY L.P.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
2. Basis of Presentation and Significant Accounting Policies - continued
Significant Accounting Policies - continued
Income Taxes: Vornado operates in a manner intended to enable it to continue to qualify as a REIT under Sections 856-860 of the Internal Revenue Code of 1986, as amended. Under those sections, a REIT which distributes at least 90% of its REIT taxable income as a dividend to its shareholders each year and which meets certain other conditions will not be taxed on that portion of its taxable income which is distributed to its shareholders. Vornado distributes to its shareholders 100% of its REIT taxable income and therefore, no provision for Federal income taxes is required. Dividends distributed for the years ended December 31, 2024, 2023 and 2022 were characterized, for federal income tax purposes, as ordinary income under Section 199A of the Internal Revenue Code.
We have elected to treat certain consolidated subsidiaries, and may in the future elect to treat newly formed subsidiaries, as taxable REIT subsidiaries pursuant to an amendment to the Internal Revenue Code that became effective January 1, 2001. Taxable REIT subsidiaries may participate in non-real estate related activities and/or perform non-customary services for tenants and are subject to Federal and State income tax at regular corporate tax rates. The Farley Building and our 220 Central Park South (“220 CPS”) condominium project are held through taxable REIT subsidiaries.
As of December 31, 2024 and 2023, our taxable REIT subsidiaries had deferred tax assets, net of valuation allowances, of $6,142,000 and $7,557,000, respectively, which are included in “other assets” on our consolidated balance sheets. As of December 31, 2024 and 2023, our taxable REIT subsidiaries had deferred tax liabilities of $84,877,000 and $74,721,000, respectively, which are included in "other liabilities" on our consolidated balance sheets. The deferred tax assets relate to net operating loss carry forwards and temporary differences between the book and tax basis of our assets. The deferred tax liabilities relate to temporary differences between the book and tax basis of our assets.
As of December 31, 2024, our taxable REIT subsidiaries have an estimated $181,000,000 of federal net operating loss ("NOL") carryforwards and $246,000,000 of state and local NOL carryforwards, which are reduced by valuation allowances of $162,000,000 for federal NOL carryforwards and $246,000,000 for state and local NOL carryforwards. The NOL carryforwards are subject to certain limitations.
For the year ended December 31, 2024, we recognized $22,729,000 of income tax expense based on an effective tax rate of approximately 53.0%. For the years ended December 31, 2023 and 2022, we recognized $29,222,000 and $21,660,000 of income tax expense, based on effective tax rates of approximately 47.0% and negative 6.0%, respectively. Income tax expense recorded in each of the years primarily relates to our consolidated taxable REIT subsidiaries, and certain state, local, and franchise taxes. The year ended December 31, 2024 included $14,353,000 of income tax expense resulting from book to tax differences (primarily straight-line rent adjustments and depreciation) on our investment in The Farley Building and $2,106,000 of income tax expense recognized on the sale of 220 CPS condominium units. The year ended December 31, 2023 included $11,722,000 of income tax expense resulting from book to tax differences on our investment in The Farley Building and $2,168,000 of income tax expense recognized on the sale of 220 CPS condominium units. The year ended December 31, 2022 included $13,665,000 of income tax expense resulting from book to tax differences on our investment in The Farley Building and $6,016,000 of income tax expense recognized on the sale of 220 CPS condominium units. The Company has no uncertain tax positions recognized as of December 31, 2024 and 2023.
The Operating Partnership’s partners are required to report their respective share of taxable income on their individual tax returns.
The estimated taxable income attributable to Vornado common shareholders (unaudited) for the years ended December 31, 2024, 2023 and 2022 was approximately $145,630,000, $102,903,000, and $398,644,000, respectively. The book to tax differences between net income (loss) and estimated taxable income primarily result from differences in the income recognition or deductibility of depreciation and amortization, gain or loss from the sale of real estate and other capital transactions, impairment losses, straight-line rent adjustments, stock option expense and repairs expense related to the tangible property regulations.
The net basis of Vornado’s assets and liabilities for tax reporting purposes is approximately $1.4 billion lower than the amounts reported in Vornado’s consolidated balance sheet as of December 31, 2024.
VORNADO REALTY TRUST AND VORNADO REALTY L.P.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
3. Revenue Recognition
Below is a summary of our revenues by segment. Additional financial information related to these reportable segments for the years ended December 31, 2024, 2023 and 2022 is set forth in Note 22 - Segment Information.
(Amounts in thousands) For the Year Ended December 31, 2024
Total New York Other
Property rentals $ 1,486,503 $ 1,215,854 $ 270,649
Trade shows 21,541 - 21,541
Lease revenues(1)
1,508,044 1,215,854 292,190
Tenant services 41,549 29,344 12,205
Parking revenues 19,213 15,228 3,985
Rental revenues 1,568,806 1,260,426 308,380
BMS cleaning fees 149,225 159,903 (10,678) (2)
Management and leasing fees 14,680 15,443 (763)
Other income 54,975 36,225 18,750
Fee and other income 218,880 211,571 7,309
Total revenues $ 1,787,686 $ 1,471,997 $ 315,689
(Amounts in thousands) For the Year Ended December 31, 2023
Total New York Other
Property rentals $ 1,523,890 $ 1,222,229 $ 301,661 (3)
Trade shows 20,781 - 20,781
Lease revenues(1)
1,544,671 1,222,229 322,442
Tenant services 42,460 31,086 11,374
Parking revenues 20,355 16,502 3,853
Rental revenues 1,607,486 1,269,817 337,669
BMS cleaning fees 141,937 151,608 (9,671) (2)
Management and leasing fees 13,040 13,619 (579)
Other income 48,700 17,114 31,586
Fee and other income 203,677 182,341 21,336
Total revenues $ 1,811,163 $ 1,452,158 $ 359,005
____________________
See notes on following page.
VORNADO REALTY TRUST AND VORNADO REALTY L.P.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
3. Revenue Recognition - continued
(Amounts in thousands) For the Year Ended December 31, 2022
Total New York Other
Property rentals $ 1,510,648 $ 1,230,851 $ 279,797
Trade shows 32,669 - 32,669
Lease revenues(1)
1,543,317 1,230,851 312,466
Tenant services 45,211 33,351 11,860
Parking revenues 19,157 15,979 3,178
Rental revenues 1,607,685 1,280,181 327,504
BMS cleaning fees 137,673 146,530 (8,857) (2)
Management and leasing fees 11,039 11,645 (606)
Other income 43,598 11,086 32,512
Fee and other income 192,310 169,261 23,049
Total revenues $ 1,799,995 $ 1,449,442 $ 350,553
________________________________________
(1)The components of lease revenues were as follows:
For the Year Ended December 31,
2024 2023 2022
Fixed billings $ 1,358,256 $ 1,387,731 $ 1,376,527
Variable billings 153,011 150,045 122,947
Total contractual operating lease billings 1,511,267 1,537,776 1,499,474
Adjustment for straight-line rents and amortization of acquired below-market leases and other, net (3,223) 6,895 43,843
Lease revenues $ 1,508,044 $ 1,544,671 $ 1,543,317
(2)Represents the elimination of BMS cleaning fees related to THE MART and 555 California Street which are included as income in the New York segment.
(3)2023 includes the receipt of a $21,350 tenant settlement, of which $6,405 is attributable to noncontrolling interests.
VORNADO REALTY TRUST AND VORNADO REALTY L.P.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
4. Investments in Partially Owned Entities
Fifth Avenue and Times Square JV
As of December 31, 2024, we own a 51.5% common interest in a joint venture ("Fifth Avenue and Times Square JV") which owns interests in properties located at 640 Fifth Avenue, 655 Fifth Avenue, 666 Fifth Avenue, 689 Fifth Avenue, 697-703 Fifth Avenue, 1535 Broadway and 1540 Broadway (collectively, the "Properties"). The remaining 48.5% common interest in the joint venture is owned by a group of institutional investors (the "Investors"). Our 51.5% common interest in the joint venture represents an effective 51.0% interest in the Properties. The 48.5% common interest in the joint venture owned by the Investors represents an effective 47.2% interest in the Properties.
We also own $1.828 billion aggregate liquidation preference of preferred equity interests in certain of the Properties. The preferred equity had an annual coupon of 4.25% until April 2024. In April 2024, it increased to 4.75% for a five year period and will then be based on a formulaic rate. It can be redeemed under certain conditions on a tax deferred basis.
Fifth Avenue and Times Square JV operates pursuant to a limited partnership agreement (the “Partnership Agreement”) among VRLP, a wholly owned subsidiary of VRLP (“Vornado GP”) and the Investors. Vornado GP is the general partner of Fifth Avenue and Times Square JV. VRLP is jointly and severally liable with Vornado GP for Vornado GP’s obligations under the Partnership Agreement. Pursuant to the Partnership Agreement and the organizational documents of the entities owning the Properties, the Investors or directors of the entities owning the Properties appointed by the Investors, as the case may be, have the right to approve annual business plans and budgets for the Properties and certain other specified major decisions with respect to the Properties and Fifth Avenue and Times Square JV. The Partnership Agreement affords the Investors the right to remove and replace Vornado GP in the event Vornado GP or certain of its affiliates commit fraud or other bad acts in connection with Fifth Avenue and Times Square JV, become bankrupt or insolvent, or default on certain of their respective obligations under the Partnership Agreement (subject to notice and cure periods in certain circumstances). The Partnership Agreement includes (i) remedies for the failure of any partner to make a required capital contribution for necessary expenses and (ii) liquidity provisions, including transfer rights subject to mutual rights of first offer and a mutual buy-sell, customary for similar partnerships. Subject to certain limitations, either party may transfer more than 50% or control of its respective interests in Fifth Avenue and Times Square JV or exercise a buy-sell on a Property-by-Property basis (with only one property subject to a buy-sell at any time), and commencing April 18, 2029, either party may exercise a buy-sell on multiple properties concurrently. In the event the buy-sell is exercised with respect to any Property in which VRLP holds preferred equity and VRLP is the selling partner in the buy-sell, VRLP may elect whether or not to include its preferred equity in the buy-sell for the Property to be sold.
As of December 31, 2024, the carrying amount of our investment in the joint venture was less than our share of the equity in the net assets of the joint venture by approximately $803,757,000, the basis difference primarily resulting from the non-cash impairment losses recognized in prior periods. Substantially all of this basis difference was allocated, based on our estimates of the fair values of Fifth Avenue and Times Square JV’s assets and liabilities, to real estate (land and buildings). We are amortizing the basis difference related to the buildings into earnings as a reduction to depreciation expense over their estimated useful lives.
We receive an annual fee for managing the Properties equal to 2% of the gross revenues from the Properties. In addition, we are entitled to a development fee of 5% of development costs, plus reimbursement of certain costs, for development projects performed by us. We are entitled to 1.5% of development costs, plus reimbursement of certain costs, as a supervisory fee for development projects not performed by us. We provide leasing services for fees calculated based on a percentage of rents, less any commissions paid to third-party real estate brokers, if applicable. We jointly provide leasing services for the retail space with Crown Retail Services LLC, and exclusively provide leasing services for the office space. We recognized property management fee income, included in "fee and other income" on our consolidated statements of income, of $4,276,000, $4,587,000 and $4,397,000 for the years ended December 31, 2024, 2023 and 2022, respectively.
Wholly owned subsidiaries of Vornado provide cleaning, security and engineering services at certain Properties. We recognized income for these services, included in "fee and other income" on our consolidated statements of income, of $4,624,000, $4,499,000 and $4,571,000 for the years ended December 31, 2024, 2023 and 2022, respectively.
We believe, based on comparable fees charged by other real estate companies, that the fees described above are consistent with the market.
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%.
VORNADO REALTY TRUST AND VORNADO REALTY L.P.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
4. Investments in Partially Owned Entities - continued
Alexander’s, Inc
As of December 31, 2024, we own 1,654,068 Alexander’s common shares, or approximately 32.4% of Alexander’s common equity. We manage, develop and lease Alexander’s properties pursuant to agreements which expire in March of each year and are automatically renewable. As of December 31, 2024 and 2023, Alexander’s owed us an aggregate of $1,159,000 and $715,000, respectively, pursuant to such agreements.
As of December 31, 2024, the market value (“fair value” pursuant to ASC Topic 820, Fair Value Measurements ("ASC 820")) of our investment in Alexander’s, based on Alexander’s December 31, 2024 closing share price of $200.06, was $330,913,000, or $262,421,000 in excess of the carrying amount on our consolidated balance sheet. As of December 31, 2024, the carrying amount of our investment in Alexander’s, excluding amounts owed to us, exceeds our share of the equity in the net assets of Alexander’s by approximately $29,272,000. The majority of this basis difference resulted from the excess of our purchase price for the Alexander’s common stock acquired over the book value of Alexander’s net assets. Substantially all of this basis difference was allocated, based on our estimates of the fair values of Alexander’s assets and liabilities, to real estate (land and buildings). We are amortizing the basis difference related to the buildings into earnings as additional depreciation expense over their estimated useful lives. This depreciation is not material to our share of equity in Alexander’s net income.
We receive an annual fee for managing Alexander’s and all of its properties equal to the sum of (i) $2,800,000, (ii) 2% of the gross revenue from the Rego Park II Shopping Center, (iii) $0.50 per square foot of the tenant-occupied office and retail space at 731 Lexington Avenue, and (iv) $376,000, escalating at 3% per annum, for managing the common area of 731 Lexington Avenue. In addition, we are entitled to a development fee of 6% of development costs, as defined.
We provide Alexander’s with leasing services for a fee of 3% of rent for the first ten years of a lease term, 2% of rent for the eleventh through twentieth year of a lease term and 1% of rent for the twenty-first through thirtieth year of a lease term, subject to the payment of rents by tenants. Under the agreements in effect prior to May 1, 2024, in the event third-party real estate brokers were used, the fees due to us increased by 1% and we were responsible for the payment of fees to the third-party real estate brokers (“Third Party Lease Commissions”). On May 1, 2024, our Board of Trustees approved amendments to the leasing agreements, subject to applicable consents from Alexander’s lenders, pursuant to which Alexander’s is directly responsible for any Third-Party Lease Commissions and, in such circumstances, our fee is one-third of the applicable Third-Party Lease Commissions.
Wholly owned subsidiaries of Vornado provide cleaning, engineering, security, and garage management services to certain Alexander’s properties. During the years ended December 31, 2024, 2023 and 2022, we recognized $4,611,000, $4,629,000 and $4,601,000 of income, respectively, for these.
On May 3, 2024, Alexander’s 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.
In connection with the lease amendments discussed above, Alexander’s paid a leasing commission to a third-party real estate broker and paid us a $5,500,000 leasing commission override.
On September 30, 2024, Alexander’s 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.
VORNADO REALTY TRUST AND VORNADO REALTY L.P.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
4. Investments in Partially Owned Entities - continued
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.
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.
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.
Below is a schedule of our investments in partially owned entities.
(Amounts in thousands) Percentage Ownership as of December 31, 2024 Balance as of December 31,
2024 2023
Investments:
Fifth Avenue and Times Square JV (see page 87 for details)
51.5% $ 2,235,546 $ 2,242,972
Partially owned office buildings/land(1)
Various 186,190 118,558
Alexander’s (see page 88 for details)
32.4% 68,492 87,510
Other equity method investments(2)
Various 201,250 161,518
$ 2,691,478 $ 2,610,558
Investments in partially owned entities included in other liabilities(3):
7 West 34th Street 53.0% $ (70,552) $ (69,899)
85 Tenth Avenue 49.9% (18,978) (11,330)
$ (89,530) $ (81,229)
_________________________________________________________________________________________
(1)Includes interests in 280 Park Avenue, 650 Madison Avenue, 512 West 22nd Street, 61 Ninth Avenue and others.
(2)Includes interests in Independence Plaza, Sunset Pier 94 Joint Venture (“Pier 94 JV”), Rosslyn Plaza and others.
(3)Our negative basis results from distributions in excess of our investment.
VORNADO REALTY TRUST AND VORNADO REALTY L.P.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
4. Investments in Partially Owned Entities - continued
Below is a schedule of income (loss) from partially owned entities.
(Amounts in thousands) Percentage Ownership as of December 31, 2024 For the Year Ended December 31,
2024 2023 2022
Our share of net income (loss):
Fifth Avenue and Times Square JV (see page 87 for details):
Equity in net income(1)
51.5% $ 43,451 $ 35,209 $ 55,248
Return on preferred equity, net of our share of the expense 40,668 37,416 37,416
Non-cash impairment loss - - (489,859)
84,119 72,625 (397,195)
Alexander's (see page 88 for details):
Equity in net income 32.4% 13,813 15,441 18,439
Management, leasing and development fees 5,263 5,238 4,534
Net gain on sale of land - 16,396 -
19,076 37,075 22,973
Partially owned office buildings(2)(3)(4)
Various (839) (73,589) (110,261)
Other equity method investments(3)(5)
Various 10,108 2,578 23,132
$ 112,464 $ 38,689 $ (461,351)
________________________________________
(1)2023 includes a $5,120 accrual of default interest which was forgiven by the lender as part of the restructuring of the 697-703 Fifth Avenue loan and is being amortized over the remaining term of the restructured loan, reducing future interest expense.
(2)Includes interests in 280 Park Avenue, 7 West 34th Street, 512 West 22nd Street, 61 Ninth Avenue, 85 Tenth Avenue and others.
(3)In 2023 and 2022, we recognized $50,458 and $93,353, respectively, of impairment losses.
(4)2024 includes our $31,215 share of the debt extinguishment gain from the repayment of the 280 Park Avenue mezzanine loan. See page 89 for details.
(5)Includes interests in Independence Plaza, Rosslyn Plaza and others. 2022 includes $17,185 of net gains from dispositions of two investments.
VORNADO REALTY TRUST AND VORNADO REALTY L.P.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
4. Investments in Partially Owned Entities - continued
Below is a summary of the debt of our partially owned entities.
(Amounts in thousands) Percentage Ownership as of December 31, 2024 Maturity(1)
Weighted Average Interest Rate as of December 31, 2024(2)
100% Partially Owned Entities’
Debt(3) as of December 31,
2024 2023
Mortgages Payable:
Partially owned office buildings(4)
Various 2025-2029 4.84% $ 3,146,918 $ 3,275,098
Alexander's 32.4% 2025-2028 3.94% 996,544 1,096,544
Fifth Avenue and Times Square JV 51.5% 2028-2029 6.93% 753,194 855,476
Other(5)
Various 2025-2032 5.05% 1,311,662 1,365,954
________________________________________
(1)Assumes the exercise of as-of-right extension options.
(2)Represents the interest rate in effect as of period end based on the appropriate reference rate as of the contractual reset date plus contractual spread, adjusted for hedging instruments, as applicable.
(3)The Operating Partnership guarantees $303,000 of debt, primarily comprised of the $300,000 mortgage loan on 7 West 34th Street.
(4)Includes interests in 280 Park Avenue, 650 Madison Avenue, 7 West 34th Street, 512 West 22nd Street, 61 Ninth Avenue, 85 Tenth Avenue and others.
(5)Includes interests in Independence Plaza, Pier 94 JV, Rosslyn Plaza and others.
Based on our ownership interest in the partially owned entities above, our pro rata share of the debt of these partially owned entities was $2,477,701,000 and $2,654,701,000 as of December 31, 2024 and 2023, respectively.
Summary of Condensed Combined Financial Information
The following is a summary of condensed combined financial information for all of our partially owned entities.
(Amounts in thousands) As of December 31,
2024 2023
Balance Sheet:
Assets $ 11,296,000 $ 11,533,000
Liabilities 7,073,000 7,326,000
Noncontrolling interests 1,905,000 1,907,000
Equity 2,318,000 2,300,000
(Amounts in thousands) For the Year Ended December 31,
2024 2023 2022
Income Statement:
Total revenue $ 1,119,000 $ 1,132,000 $ 1,189,000
Net income (loss) 33,000 34,000 (404,000)
Net loss attributable to the entities (49,000) (40,000) (483,000)
5. 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.
6. Dispositions
220 Central Park South
During the year ended December 31, 2024, we closed on the sale of two condominium units at 220 Central Park South (“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. As of December 31, 2024, four units remain unsold, with a carrying value of $21,552,000 which is included in "other assets” on our consolidated balance sheets.
VORNADO REALTY TRUST AND VORNADO REALTY L.P.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
7. Identified Intangible Assets and Liabilities
The following summarizes our identified intangible assets (primarily in-place and above-market leases) and liabilities (primarily below-market leases).
(Amounts in thousands) Balance as of December 31,
2024 2023
Identified intangible assets:
Gross amount $ 193,217 $ 225,671
Accumulated amortization (75,002) (98,589)
Total, net $ 118,215 $ 127,082
Identified intangible liabilities (included in deferred revenue):
Gross amount $ 134,499 $ 206,771
Accumulated amortization (110,982) (178,282)
Total, net $ 23,517 $ 28,489
Amortization of acquired below-market leases, net of acquired above-market leases, resulted in an increase to rental revenues of $3,035,000, $5,268,000 and $5,178,000 for the years ended December 31, 2024, 2023 and 2022, respectively. Estimated annual amortization for each of the five succeeding years commencing January 1, 2025 is below:
(Amounts in thousands)
2025 $ 387
2026 290
2027 (249)
2028 (150)
2029 (119)
Amortization of all other identified intangible assets (a component of depreciation and amortization expense) was $6,930,000, $8,342,000 and $10,516,000 for the years ended December 31, 2024, 2023 and 2022, respectively. Estimated annual amortization for each of the five succeeding years commencing January 1, 2025 is below:
(Amounts in thousands)
2025 $ 5,719
2026 5,615
2027 5,308
2028 4,175
2029 3,660
8. Debt
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%.
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.
VORNADO REALTY TRUST AND VORNADO REALTY L.P.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
8. Debt - continued
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%.
The following is a summary of our debt:
(Amounts in thousands) Weighted Average Interest Rate as of December 31, 2024(1)
Balance as of December 31,
2024 2023
Mortgages Payable:
Fixed rate(2)
4.63% $ 4,591,400 $ 4,518,200
Variable rate(3)
6.01% (4)
1,115,776 1,211,415
Total 4.90% 5,707,176 5,729,615
Deferred financing costs, net and other (31,162) (41,595)
Total, net $ 5,676,014 $ 5,688,020
Unsecured Debt:
Senior unsecured notes 3.02% $ 1,200,000 $ 1,200,000
Deferred financing costs, net and other (4,086) (6,127)
Senior unsecured notes, net 1,195,914 1,193,873
Unsecured term loan 4.67% 800,000 800,000
Deferred financing costs, net and other (4,052) (5,441)
Unsecured term loan, net 795,948 794,559
Unsecured revolving credit facilities 3.88% 575,000 575,000
Total, net $ 2,566,862 $ 2,563,432
________________________________________
(1)Represents the interest rate in effect as of period end based on the appropriate reference rate as of the contractual reset date plus contractual spread, adjusted for hedging instruments, as applicable. See Note 14 - Fair Value Measurements for further information on our consolidated hedging instruments.
(2)Includes variable rate mortgages with interest rates fixed by interest rate swap arrangements and the $950,000 1290 Avenue of the Americas mortgage loan which is subject to a 1.00% SOFR interest rate cap arrangement.
(3)Includes variable rate mortgages subject to interest rate cap arrangements, except for the 1290 Avenue of the Americas mortgage loan discussed above. As of December 31, 2024, $960,000 of our variable rate debt was subject to interest rate cap arrangements. The interest rate cap arrangements have a weighted average strike rate of 4.79% and a weighted average remaining term of four months.
(4)Includes additional 3.00% default interest on the 606 Broadway mortgage loan.
The net carrying amount of properties collateralizing the above indebtedness amounted to $5.9 billion as of December 31, 2024.
As of December 31, 2024, the principal maturities of mortgages payable and unsecured debt, including as-of-right extension options, for the next five years and thereafter are presented below. The below excludes the $74,119,000 mortgage loan on 606 Broadway which is in maturity default. See above for further details.
(Amounts in thousands) Mortgages Payable Unsecured Debt
Year Ended December 31,
2025 $ 878,057 $ 450,000 (1)
2026 525,000 400,000
2027 1,580,000 1,375,000
2028 2,300,000 -
2029 - -
Thereafter 350,000 350,000
________________________________________
(1) We repaid our $450,000 3.50% senior unsecured notes on their January 15, 2025 maturity date.
VORNADO REALTY TRUST AND VORNADO REALTY L.P.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
9. Redeemable Noncontrolling Interests
Redeemable Noncontrolling Partnership Units
Redeemable noncontrolling partnership units are primarily comprised of Class A Operating Partnership units held by third parties and are recorded at the greater of their carrying amount or redemption value at the end of each reporting period. Changes in the value from period-to-period are charged to “additional capital” in Vornado’s consolidated statements of changes in equity and to “partners’ capital” on the consolidated balance sheets of the Operating Partnership. Class A units may be tendered for redemption to the Operating Partnership for cash; Vornado, at its option, may assume that obligation and pay the holder either cash or Vornado common shares on a one-for-one basis. Because the number of Vornado common shares outstanding at all times equals the number of Class A units owned by Vornado, the redemption value of each Class A unit is equivalent to the market value of one Vornado common share, and a distribution made to a Class A unitholder is equal to the dividend paid to a Vornado common shareholder.
Below are the details of redeemable noncontrolling partnership units.
(Amounts in thousands, except units and per unit amounts) Balance as of December 31, Units Outstanding as of December 31, Per Unit
Liquidation
Preference Preferred or
Annual
Distribution
Rate
Unit Series 2024 2023 2024 2023
Common:
Class A units held by third parties $ 708,408 (1)
$ 480,251 (1)
16,850,803 17,000,030 n/a $ 0.74
Perpetual Preferred/Redeemable Preferred:
3.25% D-17 Cumulative Redeemable(2)
$ 3,535 $ 3,535 141,400 141,400 $ 25.00 $ 0.8125
________________________________________
(1)Balance reflects the redemption value which is based on Vornado’s quarter-end closing common share price.
(2)Holders may tender units for redemption to the Operating Partnership for cash at their stated redemption amount; Vornado, at its option, may assume that obligation and pay the holders either cash or Vornado preferred shares on a one-for-one basis. These units are redeemable at Vornado's option at any time.
Below is a table summarizing the activity of redeemable noncontrolling partnership units.
(Amounts in thousands) For the Year Ended December 31,
2024 2023
Beginning balance $ 483,786 $ 348,692
Net income 860 3,361
Other comprehensive loss (693) (9,340)
Distributions (12,698) (10,783)
Redemption of Class A units for Vornado common shares, at redemption value (15,912) (8,489)
Redeemable Class A unit measurement adjustment 226,586 138,114
Other, net 30,014 22,231
Ending balance $ 711,943 $ 483,786
Redeemable noncontrolling partnership units exclude our Series G-1 through G-4 convertible preferred units and Series D-13 cumulative redeemable preferred units, as they are accounted for as liabilities in accordance with ASC Topic 480, Distinguishing Liabilities and Equity. Accordingly, the fair value of these units is included as a component of "other liabilities" on our consolidated balance sheets and aggregated $49,684,000 and $49,386,000 as of December 31, 2024 and 2023, respectively. Changes in the value from period-to-period, if any, are charged to “interest and debt expense” on our consolidated statements of income.
Redeemable Noncontrolling Interest in a Consolidated Subsidiary
A consolidated joint venture in which we own a 95% interest, developed and owns the Farley Building (the "Farley Project"). As of December 31, 2024, a historic tax credit investor (the "Tax Credit Investor") has funded $208,407,000 of capital contributions to the Farley Project in connection with the development.
The arrangement includes a put option whereby the joint venture may be obligated to purchase the Tax Credit Investor’s ownership interest in the Farley Project at a future date. The put price is calculated based on a pre-determined formula. As exercise of the put option is outside of the joint venture’s control, the Tax Credit Investor’s interest, together with the put option, have been recorded to “redeemable noncontrolling interest in a consolidated subsidiary” on our consolidated balance sheets. The redeemable noncontrolling interest is recorded at the greater of the carrying amount or redemption value at the end of each reporting period. Changes in the value from period-to-period are charged to “additional capital” in Vornado’s consolidated statements of changes in equity and to “partners’ capital” on the consolidated balance sheets of the Operating Partnership. There was no adjustment required for the years ended December 31, 2024 and 2023.
VORNADO REALTY TRUST AND VORNADO REALTY L.P.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
9. Redeemable Noncontrolling Interests - continued
Redeemable Noncontrolling Interest in a Consolidated Subsidiary - continued
Below is a table summarizing the activity of the redeemable noncontrolling interest in a consolidated subsidiary.
For the Year Ended December 31,
(Amounts in thousands) 2024 2023
Beginning balance $ 154,662 $ 88,040
Net loss (31,167) (39,385)
Distributions (4,119) (6,661)
Contributions 3,339 112,668
Ending balance $ 122,715 $ 154,662
10. Shareholders' Equity/Partners' Capital
Common Shares (Vornado Realty Trust)
As of December 31, 2024, there were 190,846,580 common shares outstanding. During 2024, we paid an aggregate of $141,103,000 of common dividends at an annual rate of $0.74 per share.
Class A Units (Vornado Realty L.P.)
As of December 31, 2024, there were 190,846,580 Class A units outstanding that were held by Vornado. These units are classified as “partners’ capital” on the consolidated balance sheets of the Operating Partnership. As of December 31, 2024, there were 16,850,803 Class A units outstanding, that were held by third parties. These units are classified outside of “partners’ capital” as “redeemable partnership units” on the consolidated balance sheets of the Operating Partnership (see Note 9 - Redeemable Noncontrolling Interests). During 2024, the Operating Partnership paid an aggregate of $141,103,000 of distributions to Vornado at an annual rate of $0.74 per unit.
Share Repurchase Program
In April 2023, our Board of Trustees authorized a share repurchase plan under which Vornado is authorized to repurchase up to $200,000,000 of its outstanding common shares. To the extent Vornado repurchases any of its common shares, in order to fund the common share repurchase and maintain the one-to-one ratio of the number of Vornado common shares outstanding and the number of Class A units owned by Vornado, the Operating Partnership will repurchase from Vornado an equal number of its Class A units at the same price.
Share repurchases may be made from time to time in the open market, through privately negotiated transactions or through other means as permitted by federal securities laws, including through block trades, accelerated share repurchase transactions and/or trading plans intended to qualify under Rule 10b5-1. The timing, manner, price and amount of any repurchases will be determined in Vornado’s discretion depending on business, economic and market conditions, corporate and regulatory requirements, prevailing prices for Vornado’s common shares, alternative uses for capital and other considerations. The program does not have an expiration date and may be suspended or discontinued at any time and does not obligate Vornado to make any repurchases of its common shares.
During the year ended December 31, 2024, no shares were repurchased. In total, Vornado has repurchased 2,024,495 common shares for $29,143,000 at an average price per share of $14.40. As of December 31, 2024, $170,857,000 remained available and authorized for repurchases.
VORNADO REALTY TRUST AND VORNADO REALTY L.P.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
10. Shareholders' Equity/Partners' Capital - continued
Preferred Shares/Units
The following table sets forth the details of our preferred shares of beneficial interest and the preferred units of the Operating Partnership outstanding as of December 31, 2024 and 2023. During 2024, we paid $62,112,000 in preferred dividends.
(Amounts in thousands, except share/unit and per share/per unit amounts)
Per Share/Unit
Preferred Shares/Units Balance Shares/Units Outstanding Liquidation
Preference Annual
Dividend/
Distribution(1)
Convertible Preferred:
6.5% Series A: authorized 12,902 shares/units(2)
$ 825 9,180 $ 50.00 $ 3.25
Cumulative Redeemable Preferred(3):
5.40% Series L: authorized 13,800,000 shares/units
290,306 12,000,000 25.00 1.35
5.25% Series M: authorized 13,800,000 shares/units
308,946 12,780,000 25.00 1.3125
5.25% Series N: authorized 12,000,000 shares/units
291,134 12,000,000 25.00 1.3125
4.45% Series O: authorized 12,000,000 shares/units
291,153 12,000,000 25.00 1.1125
$ 1,182,364 48,789,180
________________________________________
(1)Dividends on preferred shares and distributions on preferred units are cumulative and are payable quarterly in arrears.
(2)Redeemable at the option of Vornado under certain circumstances, at a redemption price of 1.9531 common shares/Class A units per Series A preferred share/unit plus accrued and unpaid dividends/distributions through the date of redemption, or convertible at any time at the option of the holder for 1.9531 common shares/Class A units per Series A preferred share/unit.
(3)Series L and Series M preferred shares/units are redeemable at Vornado's option at a redemption price of $25.00 per share/unit, plus accrued and unpaid dividends/distributions through the date of redemption. Series N preferred shares/units are redeemable commencing November 2025 and Series O preferred shares/units are redeemable commencing September 2026, each at a redemption price of $25.00 per share/unit.
11. Stock-based Compensation
Vornado’s 2023 Omnibus Share Plan (the “Plan”) provides the Compensation Committee of Vornado’s Board of Trustees (the “Compensation Committee”) the ability to grant incentive and non-qualified Vornado stock options, restricted Vornado common shares, restricted Operating Partnership units (“LTIP Units”), out-performance plan awards (“OPP Units”), appreciation-only long-term incentive plan units (“AO LTIP Units”), performance conditioned appreciation-only long-term incentive plan units (“Performance AO LTIP Units”), and long-term performance plan units (“LTPP Units”) to certain of our employees and officers.
Under the Plan, awards may be granted up to a maximum 10,800,000 shares, if all awards granted are Full Value awards, as defined in the Plan, and up to 21,600,000 shares, if all of the awards granted are Not Full Value Awards, as defined in the Plan. Full Value Awards are securities that have a value equivalent to the underlying Vornado common share or Class A unit of the Operating Partnership, such as restricted Vornado common shares or LTIP Units. Vornado stock options, AO LTIP Units and Performance AO LTIP Units are Not Full Value Awards; these securities require the payment of an exercise price. As of December 31, 2024, Vornado has approximately 1,261,000 shares available for future grants under the Plan, if all awards granted are Full Value Awards, as defined.
We account for forfeitures as they occur and any previously recognized compensation cost is reversed in the period that an award is forfeited. Below is a summary of our stock-based compensation expense, a component of "general and administrative" expense on our consolidated statements of income.
(Amounts in thousands) For the Year Ended December 31,
2024 2023 2022
LTIP Units
$ 14,044 $ 22,179 $ 21,086
Performance AO LTIP Units
12,774 11,426 94
LTPP Units
2,519 7,189 5,145
OPP Units
835 1,992 1,906
Vornado stock options - 162 296
Vornado restricted stock - 159 292
AO LTIP Units
- 94 430
$ 30,172 $ 43,201 $ 29,249
VORNADO REALTY TRUST AND VORNADO REALTY L.P.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
11. Stock-based Compensation - continued
Below is a summary of unrecognized stock-based compensation expense as of December 31, 2024.
(Amounts in thousands) As of December 31, 2024 Weighted-Average
Remaining Amortization Period
Performance AO LTIP Units $ 24,342 1.7
LTIP Units 17,492 1.5
LTPP Units 2,486 1.2
OPP Units 371 1.0
$ 44,691 1.6
LTPP Units
LTPP Units are multi-year, LTIP units-based performance equity compensation plans. Awards granted under the LTPP are bifurcated between operational performance (50%) and relative performance (50%) measurements and may be earned at specified threshold, target and maximum levels.
The operational component awards may be earned based on Vornado’s operational performance in the following categories:
•FFO, as adjusted per share (75% weighting); and
•Sustainability performance metrics consisting of greenhouse emissions reductions, GRESB score and Green Building Certification (LEED) achievements (aggregate 25% weighting).
Any LTPP award units tentatively earned based on Vornado’s operational performance are subject to an absolute return modifier pursuant to which such award units are subject to a potential reduction (but not increase) of up to 30% if Vornado’s three-year total shareholder return (“TSR”) is below specified levels.
Awards under relative components may be earned based on Vornado’s three-year TSR, measured against the Dow Jones U.S. Real Estate Office Index (50% weighting) and a Northeast peer group custom index (50% weighting). Awards earned under the relative component of the LTPP are subject to reductions of up to 30% if Vornado’s three-year TSR is below specified levels.
If the designated performance objectives are achieved, awards earned under the 2023 LTPP will vest 50% in January 2026 and 50% in January 2027. For the 2022 LTPP, 50% of the awards earned vested in January 2025 and the remaining 50% will vest in January 2026. In addition, the Chief Executive Officer is required to hold any earned and vested awards for three years following each such vesting date and all other award recipients are required to hold such awards for one year following each such vesting date. Dividends on awards granted under the LTPP accrue during the applicable performance period and are paid to participants if awards are ultimately earned based on the achievement of the designated performance objectives.
There were no LTPP Units granted during the year ended December 31, 2024. LTPP Units granted during the years ended December 31, 2023 and 2022 had grant date fair values of $9,491,000 and $7,847,000, respectively. During the years ended December 31, 2023 and 2022, $4,670,000 and $4,033,000, respectively, was immediately expensed on the respective grant date due to acceleration of vesting for employees who are retirement eligible (have reached age 65 or age 60 with at least 20 years of service).
In total, 240,027 units were earned under the 2022 LTPP plan, which includes 168,371 units earned in February 2025.
OPP Units
OPP Units are multi-year, performance-based equity compensation plans under which participants have the opportunity to earn a class of units of the Operating Partnership if, and only if, Vornado outperforms a predetermined TSR and/or outperforms the market with respect to a relative TSR during the four-year performance period. OPP units, if earned, become convertible into Class A units of the Operating Partnership (and ultimately into Vornado common shares) following vesting.
There have been no OPP units granted since 2021.
In February 2025, 827,644 units were earned under the 2021 OPP plan.
VORNADO REALTY TRUST AND VORNADO REALTY L.P.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
11. Stock-based Compensation - continued
Vornado Stock Options
Vornado stock options are granted at an exercise price equal to the average of the high and low market price of Vornado’s common shares on the NYSE on the date of grant, generally vest over four years and expire ten years from the date of grant. Compensation expense related to Vornado stock option awards is recognized on a straight-line basis over the vesting period.
Below is a summary of Vornado’s stock option activity for the year ended December 31, 2024.
Shares Weighted-
Average
Exercise
Price Weighted-
Average
Remaining
Contractual
Term
Outstanding as of December 31, 2023 158,101 $ 65.52
Expired (18,684) 66.18
Outstanding as of December 31, 2024 139,417 $ 65.44 3.43
Options exercisable as of December 31, 2024 139,417 $ 65.44 3.43
There were no Vornado stock options granted during the years ended December 31, 2024, 2023 and 2022.
There were no Vornado stock options exercised during the years ended December 31, 2024 and 2023. Cash received from Vornado stock option exercises for the year ended December 31, 2022 was $7,000. The total intrinsic value of Vornado stock options exercised during the year ended December 31, 2022 was $842. As of December 31, 2024, the aggregate intrinsic value of outstanding and exercisable Vornado stock options was $132,527.
Performance AO LTIP Units
Performance AO LTIP Units are AO LTIP Units that require the achievement of certain performance conditions by a specified date or they are forfeited. If the performance conditions are met, once vested, the awards may be converted into Class A Operating Partnership units in the same manner as AO LTIP Units until ten years from the date of grant.
On June 29, 2023, the Committee granted 14,368,750 Performance AO LTIP Units to a broad group of employees of the Company including its named executive officers. Each Performance AO LTIP Unit is potentially convertible into a number of Class A Units, determined by reference to the excess of the closing market price of Vornado common shares on the NYSE on the date of conversion over $16.87. During 2024, the performance conditions under the 2023 Performance AO LTIP plan were satisfied in full following a greater than 75% increase in the share price above the grant date share price. As of December 31, 2024, the aggregate intrinsic value of outstanding Performance AO LTIP Units was $360,416,000. The 2023 Performance AO LTIP units remain subject to time-based vesting requirements.
The 2023 Performance AO LTIP Units will vest with respect to 20% on the 3rd anniversary of the Grant Date, and the remaining 80% will vest on the 4th anniversary of the Grant Date, subject to the recipient’s continued employment with the Company.
Performance AO LTIP Units granted during the year ended December 31, 2023 had a fair value of $48,710,000. The fair value of each Performance AO LTIP Unit granted was estimated on the date of grant using an option-pricing model with the following weighted-average assumptions for grants in the year ended December 31, 2023:
Expected volatility 33%
Risk free interest rate 4%
Expected dividend yield 6%
Below is a summary of Performance AO LTIP Units activity for the year ended December 31, 2024.
Shares Weighted-
Average
Exercise
Price Weighted-
Average
Remaining
Contractual
Term
Outstanding as of December 31, 2023 14,368,750 $ 16.87
Forfeited (49,500) -
Outstanding as of December 31, 2024 14,319,250 $ 16.87 8.5
Options exercisable as of December 31, 2024 - $ - -
VORNADO REALTY TRUST AND VORNADO REALTY L.P.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
11. Stock-based Compensation - continued
AO LTIP Units
AO LTIP Units are a class of partnership interests in the Operating Partnership that are intended to qualify as “profits interests” for federal income tax purposes and generally only allow the recipient to realize value to the extent the fair market value of a Vornado common share exceeds the threshold level set at the time the AO LTIP Units are granted, subject to any vesting conditions applicable to the award. The threshold level is intended to be equal to 100% of the then fair market value of a Vornado common share on the date of grant. The value of vested AO LTIP Units is realized through conversion of the AO LTIP Units into Class A Operating Partnership units. AO LTIP Units have a term of ten years from the grant date. Each holder will generally receive special income allocations in respect of an AO LTIP Unit equal to 10% (or such other percentage specified in the applicable award agreement) of the income allocated in respect of a Class A Unit. Upon conversion of AO LTIP Units to Class A Units, holders will be entitled to receive in respect of each such AO LTIP Unit, on a per unit basis, a special distribution equal to 10% (or such other percentage specified in the applicable award agreement) of the distributions received by a holder of an equivalent number of Class A Units during the period from the grant date of the AO LTIP Units through the date of conversion.
Below is a summary of AO LTIP Units activity for the year ended December 31, 2024.
Shares Weighted-
Average
Exercise
Price Weighted-
Average
Remaining
Contractual
Term
Outstanding as of December 31, 2023 541,814 $ 59.99
Expired (7,749) 58.22
Exercised (4,229) 36.72
Outstanding as of December 31, 2024 529,836 $ 60.20 4.26
Options exercisable as of December 31, 2024 529,836 $ 60.20 4.26
There were no AO LTIP Units granted during the years ended December 31, 2024, 2023 and 2022. As of December 31, 2024, the aggregate intrinsic value of outstanding and exercisable AO LTIP Units was $592,728.
LTIP Units
LTIP Units are granted at the average of the high and low market price of Vornado’s common shares on the NYSE on the date of grant, generally vest over a period of three to four years, and are subject to a taxable book-up event, as defined. Compensation expense related to LTIP Units is recognized ratably over the vesting period using a graded vesting attribution model. Distributions paid on unvested LTIP Units amounted to $2,160,000, $1,302,000 and $2,197,000 in the years ended December 31, 2024, 2023 and 2022, respectively.
Below is a summary of restricted LTIP unit activity for the year ended December 31, 2024.
Unvested Units Units Weighted-Average
Grant-Date
Fair Value
Unvested as of December 31, 2023 3,210,159 $ 17.24
Granted 92,109 22.84
Vested (374,649) 28.58
Forfeited (8,524) 14.60
Unvested as of December 31, 2024 2,919,095 15.97
LTIP Units granted in 2024, 2023 and 2022 had a fair value of $2,104,000, $45,468,000 and $15,446,000, respectively. The fair value of LTIP Units that vested during the years ended December 31, 2024, 2023 and 2022 was $10,707,000, $37,198,000 and $25,158,000, respectively.
VORNADO REALTY TRUST AND VORNADO REALTY L.P.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
12. Income (Loss) Per Share and Per Class A Unit
Vornado Realty Trust
Basic net income (loss) per common share is computed by dividing (i) net income (loss) attributable to common stockholders after allocation of dividends and undistributed earnings to participating securities by (ii) the weighted average number of common shares outstanding for the period. Diluted earnings per share reflects the dilutive impact of potential common shares and is computed after allocation of earnings to participating securities. Vornado’s participating securities include unvested restricted common shares. Employee stock options, OPP Units, AO LTIP Units, Performance AO LTIP Units and LTPP Units are included in the calculation of diluted income (loss) per share using the treasury stock method, if the effect is dilutive. Series A convertible preferred shares, Series G-1 through G-4 convertible preferred units, and Series D-13 redeemable preferred units, are included in the calculation of diluted income per share using the if-converted method, if the effect is dilutive. Net income (loss) is allocated to redeemable Class A units of the Operating Partnership on a one-for-one basis with Vornado common shares. As such, redemption of these units for Vornado common shares would not have a dilutive effect on income (loss) per common share.
(Amounts in thousands, except per share amounts) For the Year Ended December 31,
2024 2023 2022
Numerator:
Net income (loss) attributable to Vornado $ 70,387 $ 105,494 $ (346,499)
Preferred share dividends (62,112) (62,116) (62,116)
Net income (loss) attributable to common shareholders 8,275 43,378 (408,615)
Distributions and earnings allocated to unvested participating securities - (2) (18)
Numerator for basic and diluted income (loss) per common share $ 8,275 $ 43,376 $ (408,633)
Denominator:
Denominator for basic income (loss) per common share - weighted average shares 190,539 191,005 191,775
Effect of dilutive securities(1):
Share-based awards 6,087 851 -
Denominator for diluted income (loss) per common share - weighted average shares and assumed conversions 196,626 191,856 191,775
Income (loss) per common share:
Basic $ 0.04 $ 0.23 $ (2.13)
Diluted $ 0.04 $ 0.23 $ (2.13)
____________________
(1)The calculation of diluted income (loss) per common share for the years ended December 31, 2024, 2023, and 2022 excluded weighted average potential common shares of 1,580, 3,458, and 1,706, respectively, as their effect was antidilutive.
VORNADO REALTY TRUST AND VORNADO REALTY L.P.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
12. Income (Loss) Per Share and Per Class A Unit - continued
Vornado Realty L.P.
Basic net income (loss) per Class A unit is computed by dividing (i) net income (loss) attributable to Class A unitholders after allocation of distributions and undistributed earnings to participating securities by (ii) the weighted average number of Class A units outstanding for the period. Diluted earnings per share reflects the dilutive impact of potential Class A units and is computed after allocation of earnings to participating securities. VRLP’s participating securities include unvested LTIP Units and LTPP Units for which the applicable performance vesting conditions were satisfied. Equity awards subject to market and/or performance vesting conditions, including Vornado stock options, OPP Units, AO LTIP Units, Performance AO LTIP Units and LTPP Units, are included in the calculation of diluted income (loss) per Class A unit using the treasury stock method. Convertible securities, including Series A convertible preferred shares, Series G-1 through G-4 convertible preferred units, and Series D-13 redeemable preferred units, are included in the calculation of diluted income per Class A unit using the if-converted method, if dilutive.
(Amounts in thousands, except per unit amounts) For the Year Ended December 31,
2024 2023 2022
Numerator:
Net income (loss) attributable to Vornado Realty L.P. $ 71,247 $ 108,855 $ (376,875)
Preferred unit distributions (62,227) (62,231) (62,231)
Net income (loss) attributable to Class A unitholders 9,020 46,624 (439,106)
Distributions and earnings allocated to participating securities (1,964) (1,323) (2,215)
Numerator for basic and diluted income (loss) per Class A unit $ 7,056 $ 45,301 $ (441,321)
Denominator:
Denominator for basic income (loss) per Class A unit - weighted average units 204,981 205,105 205,315
Effect of dilutive securities(1):
Unit-based awards 6,087 851 -
Denominator for diluted income (loss) per Class A unit - weighted average units and assumed conversions 211,068 205,956 205,315
Income (loss) per Class A unit:
Basic $ 0.03 $ 0.22 $ (2.15)
Diluted $ 0.03 $ 0.22 $ (2.15)
____________________
(1)The calculation of diluted income (loss) per Class A unit for the years ended December 31, 2024, 2023, and 2022 excluded weighted average potential Class A units of 1,580, 3,458, and 1,706, respectively, as their effect was antidilutive.
13. Variable Interest Entities
Unconsolidated VIEs
As of December 31, 2024 and 2023, we had several unconsolidated VIEs. We do not consolidate these entities because we are not the primary beneficiary and the nature of our involvement in the activities of these entities does not give us power over decisions that significantly affect these entities’ economic performance. We primarily account for our investment in these entities under the equity method (see Note 4 - Investments in Partially Owned Entities). As of December 31, 2024 and 2023, $261,443,000 and $109,220,000, respectively, of the carrying amount of assets related to our unconsolidated VIEs was included in “investments in partially owned entities” on our consolidated balance sheets. Additionally, as of December 31, 2024, $52,530,000 was included in “other assets” on our consolidated balance sheets. Our maximum exposure to loss from our unconsolidated VIEs as of December 31, 2024 and 2023 was $316,973,000 and $196,394,000, respectively.
Consolidated VIEs
Our most significant consolidated VIEs are the Operating Partnership (for Vornado), the Farley Project and certain properties that have noncontrolling interests. These entities are VIEs because the noncontrolling interests do not have substantive kick-out or participating rights. We consolidate these entities because we control all significant business activities.
As of December 31, 2024, the total assets and liabilities of our consolidated VIEs, excluding the Operating Partnership, were $4,804,481,000 and $2,738,539,000 respectively. As of December 31, 2023, the total assets and liabilities of our consolidated VIEs, excluding the Operating Partnership, were $4,901,150,000 and $2,735,826,000, respectively.
VORNADO REALTY TRUST AND VORNADO REALTY L.P.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
14. Fair Value Measurements
ASC 820 defines fair value and establishes a framework for measuring fair value. The objective of fair value is to determine the price that would be received upon the sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (the exit price). ASC 820 establishes a fair value hierarchy that prioritizes observable and unobservable inputs used to measure fair value into three levels: Level 1 - quoted prices (unadjusted) in active markets that are accessible at the measurement date for assets or liabilities as well as certain U.S. Treasury securities that are highly liquid and are actively traded in secondary markets; Level 2 - observable prices that are based on inputs not quoted in active markets, but corroborated by market data; and Level 3 - unobservable inputs that are used when little or no market data is available. The fair value hierarchy gives the highest priority to Level 1 inputs and the lowest priority to Level 3 inputs. In determining fair value, we utilize valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible, as well as consider counterparty credit risk in our assessment of fair value. Considerable judgment is necessary to interpret Level 2 and 3 inputs in determining the fair value of our financial and non-financial assets and liabilities. Accordingly, our fair value estimates, which are made at the end of each reporting period, may be different than the amounts that may ultimately be realized upon sale or disposition of these assets.
Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis
Financial assets and liabilities that are measured at fair value on our consolidated balance sheets consist of (i) the assets in our deferred compensation plan (for which there is a corresponding liability on our consolidated balance sheets), (ii) loans receivable for which we have elected the fair value option under ASC Subtopic 825-10, Financial Instruments ("ASC 825-10"), (iii) interest rate swaps and caps and (iv) mandatorily redeemable instruments (Series G-1 through G-4 convertible preferred units and Series D-13 cumulative redeemable preferred units). The tables below aggregate the fair values of these financial assets and liabilities by their levels in the fair value hierarchy.
(Amounts in thousands) As of December 31, 2024
Total Level 1 Level 2 Level 3
Deferred compensation plan assets ($8,958 included in restricted cash and $105,622 in other assets)
$ 114,580 $ 70,025 $ - $ 44,555
Loans receivable ($32,984 included in investments in partially owned entities and $52,335 in other assets)
85,319 - - 85,319
Interest rate swaps and caps designated as a hedge (included in other assets) 88,982 - 88,982 -
Interest rate caps not designated as a hedge (included in other assets) 1,040 - 1,040 -
Total assets $ 289,921 $ 70,025 $ 90,022 $ 129,874
Mandatorily redeemable instruments (included in other liabilities) $ 49,684 $ 49,684 $ - $ -
Interest rate swaps designated as a hedge (included in other liabilities) 1,023 - 1,023 -
Interest rate caps not designated as a hedge (included in other liabilities) 1,040 - 1,040 -
Total liabilities $ 51,747 $ 49,684 $ 2,063 $ -
(Amounts in thousands) As of December 31, 2023
Total Level 1 Level 2 Level 3
Deferred compensation plan assets ($26,363 included in restricted cash and $78,883 in other assets)
$ 105,246 $ 58,956 $ - $ 46,290
Loans receivable (included in investments in partially owned entities) 32,984 - - 32,984
Interest rate swaps and caps designated as a hedge (included in other assets) 138,772 - 138,772 -
Interest rate caps not designated as a hedge (included in other assets) 4,154 - 4,154 -
Total assets $ 281,156 $ 58,956 $ 142,926 $ 79,274
Mandatorily redeemable instruments (included in other liabilities) $ 49,386 $ 49,386 $ - $ -
Interest rate swaps designated as a hedge (included in other liabilities) 7,239 - 7,239 -
Interest rate caps not designated as a hedge (included in other liabilities) 4,092 - 4,092 -
Total liabilities $ 60,717 $ 49,386 $ 11,331 $ -
VORNADO REALTY TRUST AND VORNADO REALTY L.P.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
14. Fair Value Measurements - continued
Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis - continued
Deferred Compensation Plan Assets
Deferred compensation plan assets that are classified as Level 3 consist of investments in limited partnerships and investment funds, which are managed by third parties. We receive quarterly financial reports that provide net asset values on a fair value basis from a third-party administrator, which are compiled from the quarterly reports provided to them from each limited partnership and investment fund. The period of time over which these underlying assets are expected to be liquidated is unknown. The third-party administrator does not adjust these values in determining our share of the net assets and we do not adjust these values when reported in our consolidated financial statements.
The table below summarizes the changes in the fair value of deferred compensation plan assets that are classified as Level 3.
(Amounts in thousands) For the Year Ended December 31,
2024 2023
Beginning balance $ 46,290 $ 38,916
Purchases 1,718 7,855
Sales (9,051) (5,080)
Realized and unrealized (losses) gains (2,282) 982
Other, net 7,880 3,617
Ending balance $ 44,555 $ 46,290
Loans Receivable
The table below summarizes the changes in fair value of loans receivable that are classified as Level 3.
(Amounts in thousands) For the Year Ended December 31,
2024 2023
Beginning balance $ 32,984 $ 54,397
Investment in loan receivable 50,000 -
Credit losses - (26,155) (1)
Interest accrual 2,906 5,153
Paydowns (571) (411)
Ending balance(2)
$ 85,319 $ 32,984
____________________
(1)Includes a $21,114 impairment loss on advances made for our interest in a joint venture, resulting from a decline in the value of the underlying building. The loss was included in “income (loss) from partially owned entities” on our consolidated statements of income for the year ended December 31, 2023.
(2)The fair value for $32,984 of the balance was determined by using a discounted cash flow model and Level 3 inputs, which include a terminal capitalization rate of 5.5% and a discount rate of 8.0% as of December 31, 2024 and 2023. The terminal capitalization rate and discount rate disclosed reflect both the range and the weighted average. The fair value for the remaining balance at December 31, 2024 was based on the recent transaction price.
VORNADO REALTY TRUST AND VORNADO REALTY L.P.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
14. Fair Value Measurements - continued
Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis - continued
Derivatives and Hedging
We use derivative instruments principally to reduce our exposure to interest rate increases. We do not enter into or hold derivative instruments for speculative trading purposes. We recognize the fair values of all derivatives in "other assets" or "other liabilities" on our consolidated balance sheets. Changes in the fair value of our cash flow hedges are recognized in other comprehensive income until the hedged item is recognized in earnings. Reported net income and equity may increase or decrease prospectively, depending on future levels of interest rates and other variables affecting the fair values of hedging instruments and hedged items, but will have no effect on cash flows. Cash payments and receipts related to our interest rate hedges are classified as operating activities and included within our disclosure of cash paid for interest on our consolidated statements of cash flows, consistent with the classification of the hedged interest payments.
The following table summarizes our consolidated hedging instruments, all of which hedge variable rate debt, as of December 31, 2024 and 2023, respectively.
(Amounts in thousands) As of December 31, 2024 As of December 31, 2023
Notional Amount All-In Swapped Rate Swap/Cap Expiration Date Fair Value Asset Fair Value Liability Fair Value Asset Fair Value Liability
Interest rate swaps:
555 California Street mortgage loan $ 840,000 (1)
6.03% 05/26 $ 765 $ - $ 15,494 (2)
$ 6,091
770 Broadway mortgage loan 700,000 4.98% 07/27 21,332 - 20,306 -
PENN 11 mortgage loan 500,000 (3)
6.28% 10/25 17 282 4,702 1,148 (4)
Unsecured revolving credit facility 575,000 3.88% 08/27 18,510 - 17,064 -
Unsecured term loan 700,000 4.53% (5) 10,128 - 11,089 -
100 West 33rd Street mortgage loan 480,000 5.26% 06/27 6,808 - 3,550 -
888 Seventh Avenue mortgage loan 200,000 (6)
4.76% 09/27 5,249 - 4,340 -
4 Union Square South mortgage loan 96,400 (7)
3.74% 01/25 12 - 2,327 -
435 Seventh Avenue mortgage loan(8)
75,000 6.96% 04/26 - 741 - -
Interest rate caps:
1290 Avenue of the Americas mortgage loan 950,000 (9) 11/25 25,673 - 53,784 -
One Park Avenue mortgage loan 525,000 (10) 03/25 464 - 5,297 -
Various mortgage loans 24 - 819 -
$ 88,982 $ 1,023 $ 138,772 $ 7,239
________________________________________
(1)Represents our 70.0% share of the $1.2 billion mortgage loan.
(2)Represents the fair value of the interest rate swap arrangement that expired in May 2024.
(3)In January 2024, we entered into an interest rate swap arrangement for $250,000 of the $500,000 PENN 11 mortgage loan. Together with the existing swap arrangement the loan will bear interest at an all-in swapped rate of 6.28% through October 2025.
(4)Represents the fair value of the forward swap arrangement which became effective March 2024.
(5)Represents the aggregate fair value of various interest rate swap arrangements to hedge interest payments on our unsecured term loan, which matures in December 2027. The impact of these interest rate swap arrangements is detailed below:
Swapped Balance All-In Swapped Rate Unswapped Balance
(bears interest at S+130)
Through 07/25 $ 700,000 4.53% $ 100,000
07/25 through 10/26 550,000 4.36% 250,000
10/26 through 08/27 50,000 4.04% 750,000
(6)The remaining $58,057 mortgage loan balance bears interest at a floating rate of SOFR plus 1.80% (6.35% as of December 31, 2024).
(7)The remaining $23,600 mortgage loan balance bears interest at a floating rate of SOFR plus 1.50% (6.05% as of December 31, 2024).
(8)Entered into in May 2024.
(9)SOFR strike rate of 1.00%. In connection with the arrangement, we made a $63,100 up-front payment in 2023, of which $18,930 was attributable to noncontrolling interests.
(10)SOFR cap strike rate of 3.89%.
VORNADO REALTY TRUST AND VORNADO REALTY L.P.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
14. Fair Value Measurements - continued
Fair Value Measurements on a Nonrecurring Basis
There were no assets measured at fair value on a nonrecurring basis on our consolidated balance sheet as of December 31, 2024. During the year ended December 31, 2023, we recognized impairment losses on certain real estate investments. The following table sets forth the details of our impairment losses.
(Amounts in thousands) As of and For the Year December 31, 2023
Aggregate Fair Value Impairment Losses
Consolidated real estate assets $ 55,097 $ 45,007 (1)
Investments in partially owned entities 21,473 29,344 (2)
$ 76,570 $ 74,351
________________________________________
(1)Includes $22,176 attributable to noncontrolling interests.
(2)Excludes a $21,114 impairment loss on advances made for our interest in a joint venture.
The fair value of these assets was measured using discounted cash flow analyses and Level 3 inputs. Significant unobservable quantitative inputs in the table below were utilized in determining the fair value of these real estate assets.
As of December 31, 2023
Unobservable Quantitative Input Range Weighted Average
Discount rates 7.50% - 8.00%
7.99%
Terminal capitalization rates 5.50% 5.50%
Financial Assets and Liabilities not Measured at Fair Value
Financial assets and liabilities that are not measured at fair value on our consolidated balance sheets include cash equivalents (primarily money market funds, which invest in obligations of the United States government) and our secured and unsecured debt. Estimates of the fair value of these instruments are determined by the standard practice of modeling the contractual cash flows required under the instrument and discounting them back to their present value at the appropriate current risk adjusted interest rate, which is provided by a third-party specialist. For floating rate debt, we use forward rates derived from observable market yield curves to project the expected cash flows we would be required to make under the instrument. The fair value of cash equivalents and borrowings under our unsecured revolving credit facilities and unsecured term loan are classified as Level 1. The fair value of our secured debt and unsecured debt are classified as Level 2. The table below summarizes the carrying amounts and fair value of these financial instruments.
(Amounts in thousands) As of December 31, 2024 As of December 31, 2023
Carrying
Amount Fair
Value Carrying
Amount Fair
Value
Cash equivalents $ 639,366 $ 639,000 $ 825,720 $ 826,000
Debt:
Mortgages payable $ 5,707,176 $ 5,486,000 $ 5,729,615 $ 5,569,000
Senior unsecured notes 1,200,000 1,129,000 1,200,000 1,069,000
Unsecured term loan 800,000 800,000 800,000 800,000
Unsecured revolving credit facilities 575,000 575,000 575,000 575,000
Total $ 8,282,176 (1)
$ 7,990,000 $ 8,304,615 (1)
$ 8,013,000
________________________________________
(1)Excludes $39,300 and $53,163 of deferred financing costs, net and other as of December 31, 2024 and 2023, respectively.
VORNADO REALTY TRUST AND VORNADO REALTY L.P.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
15. Transaction Related Costs, Impairment losses and Other
The following table sets forth the details of impairment losses, transaction related costs and other:
(Amounts in thousands) For the Year Ended December 31,
2024 2023 2022
Transaction related costs and other $ 5,242 $ 5,684 $ 12,624
Real estate impairment losses(1)
- 45,007 19,098
$ 5,242 $ 50,691 $ 31,722
________________________________________
(1)See Note 14 - Fair Value Measurements for additional information. 2023 includes $22,176 of impairment loss attributable to noncontrolling interests.
16. Interest and Other Investment Income, Net
The following table sets forth the details of interest and other investment income, net:
(Amounts in thousands) For the Year Ended December 31,
2024 2023 2022
Interest on cash and cash equivalents and restricted cash $ 42,571 $ 44,786 $ 7,553
Interest on loans receivable 3,450 1,351 5,006
(Loss) income from real estate fund investments(1)
(47) 1,590 3,541
Amortization of discount on investments in U.S. Treasury bills - 3,829 7,075
Credit losses on investments - (8,269) -
Other, net - - 235
$ 45,974 $ 43,287 $ 23,410
________________________________________
(1)On November 6, 2024, the $145,000 non-recourse mortgage loan on Lucida, a property owned by the Vornado Capital Partners Real Estate Fund, in which we own a 25% interest, matured and was not repaid.
17. Interest and Debt Expense
The following table sets forth the details of interest and debt expense:
(Amounts in thousands) For the Year Ended December 31,
2024 2023 2022
Interest expense $ 377,813 $ 357,995 $ 276,616
Capitalized interest and debt expense (51,212) (43,062) (19,085)
Amortization of interest rate cap premiums 41,745 10,989 430
Amortization of deferred financing fees 21,923 23,301 21,804
$ 390,269 $ 349,223 $ 279,765
VORNADO REALTY TRUST AND VORNADO REALTY L.P.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
18. Leases
As lessor
We lease space to tenants under operating leases. Most of the leases provide for the payment of fixed base rent payable monthly in advance. Leases typically provide for periodic step-ups in rent over the term of the lease and pass through to tenants their share of increases in real estate taxes and operating expenses over a base year. Certain leases also require additional variable rent payments based on a percentage of the tenants’ sales. Electricity is provided to tenants on a sub-metered basis or included in rent based on surveys and adjusted for subsequent utility rate increases. Leases also typically provide for free rent and tenant improvement allowances for all or a portion of the tenant’s initial construction costs of its premises.
As of December 31, 2024, future undiscounted cash flows under non-cancelable operating leases were as follows:
(Amounts in thousands) As of December 31, 2024
For the year ended December 31,
2025 $ 1,290,179
2026 1,268,356
2027 1,169,119
2028 1,074,024
2029 958,233
Thereafter 6,399,782
As lessee
We have a number of ground leases which are classified as operating leases. As of December 31, 2024, our ROU assets and lease liabilities were $678,804,000 and $749,759,000, respectively. As of December 31, 2023, our ROU assets and lease liabilities were $680,044,000 and $732,859,000, respectively.
When the rate implicit in a lease is not readily determinable, the discount rate applied to measure each ROU asset and lease liability is based on our incremental borrowing rate ("IBR"). We consider the general economic environment and our ratings and factor in various financing and asset specific adjustments to ensure the IBR is appropriate to the intended use of the underlying lease. Certain of our ground leases offer renewal options which we assess against relevant economic factors to determine whether we are reasonably certain of exercising or not exercising the option. Lease payments associated with renewal periods that we are reasonably certain will be exercised are included in the measurement of the lease liability and corresponding ROU asset.
Certain of our ground leases are subject to fair market rent resets based on a percentage of the appraised value of the underlying assets at specified future dates. Fair market rent resets occurring during the lease term, which may be material, do not give rise to remeasurement of the related ROU assets and lease liabilities and will be recognized in the periods in which they are incurred as variable rent expense.
The following table sets forth information related to the measurement of our lease liabilities.
(Amounts in thousands) For the Year Ended December 31,
2024 2023 2022
Weighted average remaining lease term (in years) 47.2 47.9 48.4
Weighted average discount rate 5.59 % 5.59 % 5.54 %
Cash paid for operating leases $ 22,466 $ 22,499 $ 21,861
We recognize rent expense as a component of "operating" expenses on our consolidated statements of income. Rent expense is comprised of fixed and variable lease payments. The following table sets forth the details of our rent expense.
(Amounts in thousands) For the Year Ended December 31,
2024 2023 2022
Fixed rent expense $ 45,941 $ 46,538 $ 45,211
Variable rent expense 14,573 14,679 14,180
Rent expense $ 60,514 $ 61,217 $ 59,391
VORNADO REALTY TRUST AND VORNADO REALTY L.P.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
18. Leases - continued
As lessee - continued
As of December 31, 2024, future lease payments due under operating ground leases were as follows:
(Amounts in thousands) As of December 31, 2024
For the year ended December 31,
2025 $ 81,574
2026 46,616
2027 47,027
2028 47,462
2029 47,922
Thereafter 1,821,249
Total undiscounted cash flows 2,091,850
Present value discount (1,342,091)
Lease liabilities $ 749,759
PENN 1
Our future lease payments disclosed above include payments for our PENN 1 ground lease based on an amount estimated in January 2022, when we exercised the second of three 25-year renewal options. The first renewal period commenced June 2023 and, together with the second option exercise, extends the lease term through June 2073. The ground lease is subject to fair market value resets at each 25-year renewal period. The rent reset process for the June 2023 renewal period is currently ongoing and the timing is uncertain. The final fair market value determination may be materially higher or lower than our January 2022 estimate.
The Farley Building
The future lease payments detailed above exclude the ground and building lease at the Farley Building. The consolidated joint venture, in which we own a 95% controlling interest, has a 99-year triple-net lease with Empire State Development ("ESD") for 846,000 rentable square feet of commercial space at the property, comprised of approximately 730,000 square feet of office space and approximately 116,000 square feet of restaurant and retail space. Our lease of the commercial space at the property is accounted for as a “failed sale-leaseback” as a result of us being deemed the "accounting owner" during development of the property in accordance with ASC 842-40-55 and the lease subsequently meeting "finance lease" classification pursuant to ASC 842-40-25 upon substantial completion. The lease calls for annual rent payments and fixed payments in lieu of real estate taxes ("PILOT") through June 2030. Following the fixed PILOT payment period, the PILOT is calculated in a manner consistent with buildings subject to New York City real estate taxes and assessments. As of December 31, 2024, future rent and fixed PILOT payments are $519,049,000.
19. Multiemployer Benefit Plans
Our subsidiaries make contributions to certain multiemployer defined benefit plans (“Multiemployer Pension Plans”) and health plans (“Multiemployer Health Plans”) for our union represented employees, pursuant to the respective collective bargaining agreements.
Multiemployer Pension Plans
Multiemployer Pension Plans differ from single-employer pension plans in that (i) contributions to multiemployer plans may be used to provide benefits to employees of other participating employers and (ii) if other participating employers fail to make their contributions, each of our participating subsidiaries may be required to bear its then pro rata share of unfunded obligations. If a participating subsidiary withdraws from a plan in which it participates, it may be subject to a withdrawal liability. As of December 31, 2024, our subsidiaries’ participation in these plans was not significant to our consolidated financial statements.
During the years ended December 31, 2024, 2023 and 2022, we contributed $8,059,000, $7,913,000 and $7,761,000, respectively, towards Multiemployer Pension Plans, which is included as a component of “operating” expenses on our consolidated statements of income. Our subsidiaries’ contributions did not represent more than 5% of total employer contributions in any of these plans for the years ended December 31, 2024, 2023 and 2022.
Multiemployer Health Plans
Multiemployer Health Plans in which our subsidiaries participate provide health benefits to eligible active and retired employees. During the years ended December 31, 2024, 2023 and 2022, our subsidiaries contributed $29,555,000, $28,764,000 and $26,514,000, respectively, towards these plans, which is included as a component of “operating” expenses on our consolidated statements of income.
VORNADO REALTY TRUST AND VORNADO REALTY L.P.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
20. Commitments and Contingencies
Insurance
For our properties, we maintain general liability insurance with limits of $300,000,000 per occurrence and per property, of which $275,000,000, includes communicable disease coverage, and we maintain all risk property and rental value insurance with limits of $2.0 billion per occurrence, with sub-limits for certain perils such as flood and earthquake, excluding communicable disease coverage. Our California properties have earthquake insurance with coverage of $350,000,000 per occurrence and in the aggregate, subject to a deductible in the amount of 5% of the value of the affected property. We maintain coverage for certified terrorism acts with limits of $6.0 billion per occurrence and in the aggregate (as listed below), $1.2 billion for non-certified acts of terrorism, and $5.0 billion per occurrence and in the aggregate for terrorism involving nuclear, biological, chemical and radiological (“NBCR”) terrorism events, as defined by the Terrorism Risk Insurance Act of 2002, as amended to date and which has been extended through December 2027.
Penn Plaza Insurance Company, LLC (“PPIC”), our wholly owned consolidated subsidiary, acts as a re-insurer with respect to a portion of all risk property and rental value insurance and a portion of our earthquake insurance coverage, and as a direct insurer for coverage for acts of terrorism including NBCR acts. Coverage for acts of terrorism (excluding NBCR acts) is fully reinsured by third party insurance companies and the Federal government with no exposure to PPIC. For NBCR acts, PPIC is responsible for a deductible of $2,396,808 and 20% of the balance of a covered loss and the Federal government is responsible for the remaining portion of a covered loss. We are ultimately responsible for any loss incurred by PPIC.
Certain condominiums in which we own an interest (including the Farley Condominiums) maintain insurance policies with different per occurrence and aggregate limits than our policies described above.
We continue to monitor the state of the insurance market and the scope and costs of coverage for acts of terrorism and other events. However, we cannot anticipate what coverage will be available on commercially reasonable terms in the future. We are responsible for uninsured losses and for deductibles and losses in excess of our insurance coverage, which could be material.
Our debt instruments, consisting of mortgage loans secured by our properties, senior unsecured notes and revolving credit agreements contain customary covenants requiring us to maintain insurance. Although we believe that we have adequate insurance coverage for purposes of these agreements, we may not be able to obtain an equivalent amount of coverage at reasonable costs in the future. Further, if lenders insist on greater coverage than we are able to obtain it could adversely affect our ability to finance or refinance our properties and expand our portfolio.
Other Commitments and Contingencies
We are from time to time involved in legal actions arising in the ordinary course of business. In our opinion, after consultation with legal counsel, the outcome of such matters is not currently expected to have a material adverse effect on our financial position, results of operations or cash flows.
Each of our properties has been subjected to varying degrees of environmental assessment at various times. The environmental assessments did not reveal any material environmental contamination. However, there can be no assurance that the identification of new areas of contamination, changes in the extent or known scope of contamination, the discovery of additional sites, or changes in cleanup requirements would not result in significant costs to us.
We may, from time to time, enter into guarantees including, but not limited to, payment guarantees to lenders of unconsolidated joint ventures for tax purposes, completion guarantees for development and redevelopment projects, and guarantees to fund leasing costs. These agreements terminate either upon the satisfaction of specified obligations or repayment of the underlying loans. As of December 31, 2024, the aggregate dollar amount of these guarantees is approximately $516,872,000, including the payment guarantee for the mortgage loan secured by 7 West 34th Street. Other than these loans, our mortgage loans are non-recourse to us.
As of December 31, 2024, $57,643,000 of letters of credit were outstanding under our unsecured revolving credit facilities. Our unsecured revolving credit facilities contain financial covenants that require us to maintain minimum interest coverage and maximum debt to market capitalization ratios, and provide for increased interest rates in the event of a decline in the credit rating assigned to our senior unsecured notes. Our unsecured revolving credit facilities also contain customary conditions precedent to borrowing, including representations and warranties, and also contain customary events of default that could give rise to accelerated repayment, including such items as failure to pay interest or principal.
VORNADO REALTY TRUST AND VORNADO REALTY L.P.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
20. Commitments and Contingencies - continued
Other Commitments and Contingencies - continued
Our 95% consolidated joint venture (5% is owned by Related Companies ("Related")) developed and owns the Farley Building. In connection with the development of the property, the joint venture admitted a historic Tax Credit Investor partner. Under the terms of the historic tax credit arrangement, the joint venture is required to comply with various laws, regulations, and contractual provisions. Non-compliance with applicable requirements could result in projected tax benefits not being realized and, therefore, may require a refund or reduction of the Tax Credit Investor’s capital contributions. As of December 31, 2024, the Tax Credit Investor has made $208,407,000 in capital contributions. Vornado and Related have guaranteed certain of the joint venture’s obligations to the Tax Credit Investor.
As of December 31, 2024, we had construction commitments aggregating approximately $61,016,000.
21. Related Party Transactions
Alexander’s, Inc.
We own 32.4% of Alexander’s. Steven Roth, the Chairman of Vornado’s Board of Trustee’s and its Chief Executive Officer, is also the Chairman of the Board of Directors and Chief Executive Officer of Alexander’s. We provide various services to Alexander’s in accordance with management, development and leasing agreements. These agreements are described in Note 4 - Investments in Partially Owned Entities.
Interstate Properties (“Interstate”)
Interstate is a general partnership in which Mr. Roth is the managing general partner. David Mandelbaum and Russell B. Wight, Jr., Trustees of Vornado and Directors of Alexander’s, respectively, are Interstate’s two other general partners. As of December 31, 2024, Interstate and its partners beneficially owned an aggregate of approximately 7.1% of the common shares of beneficial interest of Vornado and 26.0% of Alexander’s common stock.
We manage and lease the real estate assets of Interstate pursuant to a management agreement for which we receive an annual fee equal to 4% of annual base rent and percentage rent. The management agreement has a term of one year and is automatically renewable unless terminated by either of the parties on 60 days’ notice at the end of the term. We believe, based upon comparable fees charged by other real estate companies, that the management agreement terms are consistent with the market. We earned $208,000, $206,000, and $204,000 of management fees under the agreement for the years ended December 31, 2024, 2023 and 2022, respectively.
Fifth Avenue and Times Square JV
We provide various services to Fifth Avenue and Times Square JV in accordance with management, development, leasing and other agreements. These agreements are described in Note 4 - Investments in Partially Owned Entities. Haim Chera, Executive Vice President - Head of Retail, has an investment in Crown Acquisitions Inc. and Crown Retail Services LLC (collectively, "Crown"), companies controlled by Mr. Chera's family. Crown has a nominal minority interest in Fifth Avenue and Times Square JV. Additionally, we have other investments with Crown.
VORNADO REALTY TRUST AND VORNADO REALTY L.P.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
22. Segment Information
The Company’s operating segments are based on our method of internal reporting which classifies our operations by geographic area. We aggregate these operating segments into two reportable segments, New York and Other, which is based on similar economic characteristics.
Net operating income (“NOI”) at share represents total revenues less operating expenses, including our share of partially owned entities. The Company's chief operating decision maker ("CODM") is its Chief Executive Officer, who considers NOI at share to be the measure of segment profit and loss for making decisions on how to allocate resources and assessing the unlevered performance of our segments as it relates to the return on assets as opposed to the levered return on equity. Asset information by segment is not reported as the CODM does not use this measure to assess segment performance or to make resource allocation decisions.
Below is a summary of financial information by segment for the years ended December 31, 2024, 2023 and 2022.
(Amounts in thousands) For the Year Ended December 31, 2024
Total New York Other
Total revenues $ 1,787,686 $ 1,471,997 $ 315,689
Deduct: operating expenses(1)
(927,796) (766,347) (161,449)
Deduct: NOI attributable to noncontrolling interests in consolidated subsidiaries (39,367) (12,899) (26,468)
Add: NOI from partially owned entities 279,229 269,159 10,070
NOI at share $ 1,099,752 $ 961,910 $ 137,842
(Amounts in thousands) For the Year Ended December 31, 2023
Total New York Other
Total revenues $ 1,811,163 $ 1,452,158 $ 359,005
Deduct: operating expenses(1)
(905,158) (733,478) (171,680)
Deduct: NOI attributable to noncontrolling interests in consolidated subsidiaries (48,553) (15,547) (33,006)
Add: NOI from partially owned entities 285,761 274,436 11,325
NOI at share $ 1,143,213 $ 977,569 $ 165,644
(Amounts in thousands) For the Year Ended December 31, 2022
Total New York Other
Total revenues $ 1,799,995 $ 1,449,442 $ 350,553
Deduct: operating expenses(1)
(873,911) (716,148) (157,763)
Deduct: NOI attributable to noncontrolling interests in consolidated subsidiaries (70,029) (45,566) (24,463)
Add: NOI from partially owned entities 305,993 293,780 12,213
NOI at share $ 1,162,048 $ 981,508 $ 180,540
__________________________________
(1) Includes various expenses associated with operating our properties, including but not limited to: real estate taxes, ground rent, insurance, and utilities. Our CODM is not regularly provided with significant expense categories and amounts included within net operating income at share.
VORNADO REALTY TRUST AND VORNADO REALTY L.P.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
22. Segment Information - continued
Below is a reconciliation of NOI at share to net income (loss) before income taxes for the years ended December 31, 2024, 2023 and 2022.
(Amounts in thousands) For the Year Ended December 31,
2024 2023 2022
NOI at share $ 1,099,752 $ 1,143,213 $ 1,162,048
NOI attributable to noncontrolling interests in consolidated subsidiaries 39,367 48,553 70,029
NOI from partially owned entities (279,229) (285,761) (305,993)
Net gains on disposition of wholly owned and partially owned assets 16,048 71,199 100,625
Interest and debt expense (390,269) (349,223) (279,765)
Interest and other investment income, net 45,974 43,287 23,410
Income (loss) from partially owned entities 112,464 38,689 (461,351)
Transaction related costs, impairment losses and other (5,242) (50,691) (31,722)
General and administrative expense (148,520) (162,883) (133,731)
Depreciation and amortization expense (447,500) (434,273) (504,502)
Income (loss) before income taxes $ 42,845 $ 62,110 $ (360,952)
23. Subsequent Events
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 owned by the retail joint venture for $350,000,000. The joint venture continues to own 23,832 square feet of retail space (7,416 square feet at grade) at 666 Fifth Avenue consisting of the Abercrombie & Fitch and Tissot stores. The $342,000,000 of net proceeds from the sale were used to partially redeem Vornado’s $390,000,000 of preferred equity on the asset. The financial statement gain, which will be recognized in the first quarter of 2025, will be approximately $76,000,000.
Senior Unsecured Notes due 2025
We repaid our $450,000,000 3.50% senior unsecured notes on their January 15, 2025 maturity date.
220 Central Park South
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.

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ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS
ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE
None.

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ITEM 9A. CONTROLS AND PROCEDURES
ITEM 9A. CONTROLS AND PROCEDURES
Vornado Realty Trust
Disclosure Controls and Procedures: Our management, with the participation of Vornado’s Chief Executive Officer and Chief Financial Officer, has evaluated the effectiveness of our disclosure controls and procedures (as such term is defined in Rule 13a-15 (e) under the Securities Exchange Act of 1934, as amended) as of the end of the period covered by this Annual Report on Form 10-K. Based on such evaluation, Vornado’s Chief Executive Officer and Chief Financial Officer have concluded that, as of the end of such period, our disclosure controls and procedures are effective.
Internal Control Over Financial Reporting: There have not been any changes in our internal control over financial reporting (as defined in Rule 13a-15(f) under the Securities Exchange Act of 1934, as amended) during the fourth quarter of the fiscal year to which this report relates that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.
Management’s Report on Internal Control over Financial Reporting
Management of Vornado Realty Trust, together with its consolidated subsidiaries (the “Company”), is responsible for establishing and maintaining adequate internal control over financial reporting. Our internal control over financial reporting is a process designed under the supervision of Vornado’s principal executive and principal financial officers to provide reasonable assurance regarding the reliability of financial reporting and the preparation of our financial statements for external reporting purposes in accordance with accounting principles generally accepted in the United States of America.
As of December 31, 2024, management conducted an assessment of the effectiveness of our internal control over financial reporting based on the framework established in Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission. Based on this assessment, management has determined that our internal control over financial reporting as of December 31, 2024 was effective.
Our internal control over financial reporting includes policies and procedures that pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect transactions and dispositions of assets; provide reasonable assurances that transactions are recorded as necessary to permit preparation of financial statements in accordance with accounting principles generally accepted in the United States, and that receipts and expenditures are being made only in accordance with authorizations of management and our trustees; and provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of our assets that could have a material effect on our financial statements.
The effectiveness of our internal control over financial reporting as of December 31, 2024 has been audited by Deloitte & Touche LLP, an independent registered public accounting firm, as stated in their report appearing on the following page, which expresses an unqualified opinion on the effectiveness of our internal control over financial reporting as of December 31, 2024.
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Shareholders and the Board of Trustees of Vornado Realty Trust
Opinion on Internal Control over Financial Reporting
We have audited the internal control over financial reporting of Vornado Realty Trust and subsidiaries (the “Company”) as of December 31, 2024, based on criteria established in Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). In our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of December 31, 2024, based on criteria established in Internal Control - Integrated Framework (2013) issued by COSO.
We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated financial statements as of and for the year ended December 31, 2024, of the Company and our report dated February 10, 2025, expressed an unqualified opinion on those financial statements.
Basis for Opinion
The Company’s management is responsible for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting, included in the accompanying Management’s Report on Internal Control over Financial Reporting. Our responsibility is to express an opinion on the Company’s internal control over financial reporting based on our audit. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects. Our audit included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, testing and evaluating the design and operating effectiveness of internal control based on the assessed risk, and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion.
Definition and Limitations of Internal Control over Financial Reporting
A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.
Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
/s/ DELOITTE & TOUCHE LLP
New York, New York
February 10, 2025
ITEM 9A. CONTROLS AND PROCEDURES - CONTINUED
Vornado Realty L.P.
Disclosure Controls and Procedures: Vornado Realty L.P.’s management, with the participation of Vornado’s Chief Executive Officer and Chief Financial Officer, has evaluated the effectiveness of our disclosure controls and procedures (as such term is defined in Rule 13a-15 (e) under the Securities Exchange Act of 1934, as amended) as of the end of the period covered by this Annual Report on Form 10-K. Based on such evaluation, Vornado’s Chief Executive Officer and Chief Financial Officer have concluded that, as of the end of such period, our disclosure controls and procedures are effective.
Internal Control Over Financial Reporting: There have not been any changes in our internal control over financial reporting (as defined in Rule 13a-15(f) under the Securities Exchange Act of 1934, as amended) during the fourth quarter of the fiscal year to which this report relates that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.
Management’s Report on Internal Control over Financial Reporting
Management of Vornado Realty Trust, sole general partner of Vornado Realty L.P., together with Vornado Realty L.P.’s consolidated subsidiaries (the “Company”), is responsible for establishing and maintaining adequate internal control over financial reporting. Our internal control over financial reporting is a process designed under the supervision of Vornado’s principal executive and principal financial officers to provide reasonable assurance regarding the reliability of financial reporting and the preparation of our financial statements for external reporting purposes in accordance with accounting principles generally accepted in the United States of America.
As of December 31, 2024, management conducted an assessment of the effectiveness of our internal control over financial reporting based on the framework established in Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission. Based on this assessment, management has determined that our internal control over financial reporting as of December 31, 2024 was effective.
Our internal control over financial reporting includes policies and procedures that pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect transactions and dispositions of assets; provide reasonable assurances that transactions are recorded as necessary to permit preparation of financial statements in accordance with accounting principles generally accepted in the United States, and that receipts and expenditures are being made only in accordance with authorizations of management and Vornado’s trustees; and provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of our assets that could have a material effect on our financial statements.
The effectiveness of our internal control over financial reporting as of December 31, 2024 has been audited by Deloitte & Touche LLP, an independent registered public accounting firm, as stated in their report appearing on the following page, which expresses an unqualified opinion on the effectiveness of our internal control over financial reporting as of December 31, 2024.
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Partners of Vornado Realty L.P. and the Board of Trustees of Vornado Realty Trust
Opinion on Internal Control over Financial Reporting
We have audited the internal control over financial reporting of Vornado Realty L.P. and subsidiaries (the “Partnership”) as of December 31, 2024, based on criteria established in Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). In our opinion, the Partnership maintained, in all material respects, effective internal control over financial reporting as of December 31, 2024, based on criteria established in Internal Control - Integrated Framework (2013) issued by COSO.
We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated financial statements as of and for the year ended December 31, 2024, of the Partnership and our report dated February 10, 2025, expressed an unqualified opinion on those financial statements.
Basis for Opinion
The Partnership’s management is responsible for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting, included in the accompanying Management’s Report on Internal Control over Financial Reporting. Our responsibility is to express an opinion on the Partnership’s internal control over financial reporting based on our audit. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Partnership in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects. Our audit included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, testing and evaluating the design and operating effectiveness of internal control based on the assessed risk, and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion.
Definition and Limitations of Internal Control over Financial Reporting
A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.
Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
/s/ DELOITTE & TOUCHE LLP
New York, New York
February 10, 2025

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ITEM 9B. OTHER INFORMATION
ITEM 9B. OTHER INFORMATION
During the three months ended December 31, 2024, none of our trustees or executive officers adopted, modified or terminated a “Rule 10b5-1 trading arrangement” or a “non-Rule 10b5-1 trading arrangement” as such terms are defined under Item 408 of Regulation S-K.

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ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE
ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE
Information relating to trustees of Vornado, the Operating Partnership’s sole general partner, including its audit committee and audit committee financial expert, will be contained in Vornado’s definitive Proxy Statement involving the election of Vornado’s trustees which Vornado will file with the Securities and Exchange Commission pursuant to Regulation 14A under the Securities Exchange Act of 1934 not later than 120 days after December 31, 2024, and such information is incorporated herein by reference. Also incorporated herein by reference is the information under the caption “16(a) Beneficial Ownership Reporting Compliance” of the Proxy Statement.
Executive Officers of the Registrant
The following is a list of the names, ages, principal occupations and positions with Vornado of the executive officers of Vornado and the positions held by such officers during the past five years. All executive officers of Vornado have terms of office that run until the next succeeding meeting of the Board of Trustees of Vornado following the Annual Meeting of Vornado’s Shareholders unless they are removed sooner by Vornado’s Board.
Name Age PRINCIPAL OCCUPATION, POSITION AND OFFICE
(Current and during past five years with Vornado unless otherwise stated)
Steven Roth 83 Chairman of the Board; Chief Executive Officer since April 2013 and from May 1989 to May 2009; Managing General Partner of Interstate Properties, an owner of shopping centers and an investor in securities and partnerships; Chief Executive Officer of Alexander’s, Inc. since March 1995, a Director since 1989, and Chairman of the Board since May 2004.
Michael J. Franco 56 President and Chief Financial Officer since December 2020; President since April 2019; Executive Vice President - Chief Investment Officer from April 2015 to April 2019; Executive Vice President - Head of Acquisitions and Capital Markets from November 2010 to April 2015.
Haim Chera 55 Executive Vice President - Head of Retail since April 2019; Principal at Crown Acquisitions from January 2000 - April 2019.
Barry S. Langer 46 Executive Vice President - Development - Co-Head of Real Estate since April 2019; Executive Vice President - Head of Development from May 2015 to April 2019.
Glen J. Weiss 55 Executive Vice President - Office Leasing - Co-Head of Real Estate since April 2019; Executive Vice President - Office Leasing from May 2013 to April 2019.
Vornado, the Operating Partnership’s sole general partner, has adopted a Code of Business Conduct and Ethics that applies to all officers and employees. This Code is available on Vornado’s website at www.vno.com.
We have adopted an insider trading policy (the “Insider Trading Policy”) which applies to all employees and prohibits trading in the Company's and its affiliates' securities by persons associated with the Company that may possess material nonpublic information relating to the Company and affiliates. A copy of the Insider Trading Policy is filed as Exhibit 19.1 to this Annual Report on Form 10-K.

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ITEM 11. EXECUTIVE COMPENSATION
ITEM 11. EXECUTIVE COMPENSATION
Information relating to Vornado’s executive officer and trustee compensation will be contained in Vornado’s Proxy Statement referred to above in Item 10, “Directors, Executive Officers and Corporate Governance,” and such information is incorporated herein by reference.

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ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS
ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS
Information relating to security ownership of certain beneficial owners and management and related stockholder matters will be contained in Vornado’s Proxy Statement referred to in Item 10, “Directors, Executive Officers and Corporate Governance,” and such information is incorporated herein by reference.
Equity compensation plan information
The following table provides information as of December 31, 2024 regarding Vornado’s equity compensation plans.
Plan Category Number of securities to be
issued upon exercise of
outstanding options, warrants and rights Weighted-average
exercise price of
outstanding options, warrants and rights Number of securities remaining
available for future issuance
under equity compensation plans
(excluding securities reflected in the second column)
Equity compensation plans approved by security holders 21,554,850 (1)
$ 65.44 1,261,445 (2)
Equity compensation plans not approved by security holders 509,393 (3)
N/A -
Total 22,064,243 $ 65.44 1,261,445
________________________________________
(1)Includes shares/units of (i) 139,417 Vornado Stock Options, all of which are vested and exercisable, (ii) 529,836 Appreciation-Only Long-Term Incentive Plan ("AO LTIP") units, all of which are vested and exercisable, (iii) 14,319,250 Performance AO LTIP units, (iv) 4,437,754 restricted Operating Partnership units (1,518,659 of which are vested and exercisable), (v) 1,208,264 unearned Out-Performance Plan units, (vi) 287,793 earned but unvested Long-Term Performance Plan LTIP Units and (vii) 632,536 unearned Long-Term Performance Plan LTIP Units. See Note 11 - Stock-based Compensation in Part II, Item 8 of this Annual Report on Form 10-K for additional information.
(2)Based on awards being granted as "Full Value Awards," as defined. If we were to grant "Not Full Value Awards," as defined, the number of securities available for future grants is approximately 2,523,000 shares.
(3)Includes (i) 66,600 restricted Operating Partnership units granted at a market price of $23.65 per unit to Vornado Trustees that are not executives of the Company as part of their 2024 annual Trustee fees (ii) 23,190 restricted Operating Partnership units granted at a market price of $43.12 per unit to Vornado consultants that are not executives of the Company for 2024 annual consulting fees, (iii) 237,536 restricted Operating Partnership units granted in 2023, and (iv) 182,067 restricted Operating Partnership units granted in 2022.

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ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS
ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE
Information relating to certain relationships and related transactions, and director independence will be contained in Vornado’s Proxy Statement referred to in Item 10, “Directors, Executive Officers and Corporate Governance,” and such information is incorporated herein by reference.

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ITEM 14. PRINCIPAL ACCOUNTING FEES AND SERVICES
ITEM 14. PRINCIPAL ACCOUNTANT FEES AND SERVICES
Information relating to principal accountant fees and services will be contained in Vornado’s Proxy Statement referred to in Item 10, “Directors, Executive Officers and Corporate Governance,” under the caption “Ratification of The Appointment of Independent Accounting Firm” and such information is incorporated herein by reference.
PART IV

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ITEM 15. EXHIBITS, FINANCIAL STATEMENT SCHEDULES
ITEM 15. EXHIBITS AND FINANCIAL STATEMENT SCHEDULES
(a)The following documents are filed as part of this report:
1.The consolidated financial statements are set forth in Item 8 of this Annual Report on Form 10-K.
The following financial statement schedules should be read in conjunction with the financial statements included in Item 8 of this Annual Report on Form 10-K.
Page in this
Annual Report
on Form 10-K
Schedule III - Real Estate and Accumulated Depreciation 119
Schedules other than those listed above are omitted because they are not applicable or the information required is included in the consolidated financial statements or the notes thereto.
VORNADO REALTY TRUST AND VORNADO REALTY L.P.
SCHEDULE III
REAL ESTATE AND ACCUMULATED DEPRECIATION
(Amounts in thousands)
COLUMN A COLUMN B COLUMN C COLUMN D COLUMN E COLUMN F COLUMN G COLUMN H COLUMN I
Encumbrances(1)
Initial cost to company Costs
capitalized
subsequent
to acquisition Gross amount at which
carried at close of period Accumulated
depreciation
and
amortization Date of
construction(3)
Date
acquired Life on which
depreciation
in latest
income
statement
is computed
Land Buildings
and
improvements Land Buildings
and
improvements Total(2)
New York
Manhattan
1290 Avenue of the Americas $ 950,000 $ 518,244 $ 926,992 $ 299,181 $ 518,244 $ 1,226,173 $ 1,744,417 $ 527,598 1963 2007 (4)
One Park Avenue 525,000 197,057 369,016 16,545 197,057 385,561 582,618 36,701 1926 2021 (4)
350 Park Avenue 400,000 265,889 363,381 108,646 306,034 431,882 737,916 192,223 1960 2006 (4)
PENN 1 - - 412,169 980,523 - 1,392,692 1,392,692 482,628 1972 1998 (4)
100 West 33rd Street 480,000 331,371 361,443 77,562 331,371 439,005 770,376 199,265 1911/2009 2007 (4)
150 West 34th Street 75,000 119,657 268,509 - 119,657 268,509 388,166 64,330 1900 2015 (4)
PENN 2 575,000 (5)
53,615 164,903 1,013,238 52,689 1,179,067 1,231,756 110,970 1968 1997 (4)
90 Park Avenue - 8,000 175,890 203,970 8,000 379,860 387,860 223,366 1964 1997 (4)
770 Broadway 700,000 52,898 95,686 179,069 52,898 274,755 327,653 139,014 1907 1998 (4)
888 Seventh Avenue 258,057 - 117,269 180,925 - 298,194 298,194 179,726 1980 1998 (4)
PENN 11 500,000 40,333 85,259 148,058 40,333 233,317 273,650 121,166 1923 1997 (4)
909 Third Avenue 350,000 - 120,723 128,903 - 249,626 249,626 154,316 1969 1999 (4)
150 East 58th Street - 39,303 80,216 68,071 39,303 148,287 187,590 83,389 1969 1998 (4)
595 Madison Avenue - 62,731 62,888 84,556 62,731 147,444 210,175 71,395 1968 1999 (4)
330 West 34th Street - - 8,599 170,511 - 179,110 179,110 72,796 1925 1998 (4)
715 Lexington Avenue - - 26,903 21,178 30,086 17,995 48,081 3,947 1923 2001 (4)
4 Union Square South 120,000 24,079 55,220 14,712 24,079 69,932 94,011 32,926 1965/2004 1993 (4)
The Farley Building - - 476,235 967,380 - 1,443,615 1,443,615 158,469 1912 2018 (4)
260 Eleventh Avenue - - 80,482 8,246 - 88,728 88,728 20,498 1911 2015 (4)
606 Broadway 74,119 45,406 8,993 486 23,930 30,955 54,885 2,816 2016 (4)
435 Seventh Avenue 75,000 19,893 19,091 146 19,893 19,237 39,130 10,836 2002 1997 (4)
131-135 West 33rd Street - 8,315 21,312 429 8,315 21,741 30,056 5,018 2016 (4)
304 - 306 Canal Street - 3,511 12,905 (14,607) 358 1,451 1,809 190 1910 2014 (4)
1131 Third Avenue - 7,844 7,844 5,816 7,844 13,660 21,504 4,282 1997 (4)
431 Seventh Avenue - 16,700 2,751 300 16,700 3,051 19,751 1,259 2007 (4)
138-142 West 32nd Street - 9,252 9,936 2,232 9,252 12,168 21,420 2,987 1920 2015 (4)
334 Canal Street - 1,693 6,507 (6,700) 154 1,346 1,500 170 2011 (4)
966 Third Avenue - 8,869 3,631 - 8,869 3,631 12,500 1,029 2013 (4)
137 West 33rd Street - 6,398 1,550 - 6,398 1,550 7,948 378 1932 2015 (4)
825 Seventh Avenue - 1,483 697 3,969 1,483 4,666 6,149 1,534 1997 (4)
537 West 26th Street - 10,370 17,632 20,000 26,631 21,371 48,002 5,561 2018 (4)
VORNADO REALTY TRUST AND VORNADO REALTY L.P.
SCHEDULE III
REAL ESTATE AND ACCUMULATED DEPRECIATION - CONTINUED
(Amounts in thousands)
COLUMN A COLUMN B COLUMN C COLUMN D COLUMN E COLUMN F COLUMN G COLUMN H COLUMN I
Encumbrances(1)
Initial cost to company Costs
capitalized
subsequent
to acquisition Gross amount at which
carried at close of period Accumulated
depreciation
and
amortization Date of
construction(3)
Date
acquired Life on which
depreciation
in latest
income
statement
is computed
Land Buildings
and
improvements Land Buildings
and
improvements Total(2)
New York - continued
Manhattan - continued
339 Greenwich Street $ - $ 2,622 $ 12,333 $ (10,054) $ 866 $ 4,035 $ 4,901 $ 458 2017 (4)
Hotel Pennsylvania site (PENN 15) - 29,903 121,712 183,233 29,903 304,945 334,848 - 1919 1997 (4)
Other (Including Signage) - 140,477 31,892 79,729 108,589 143,509 252,098 34,864 (4)
Total Manhattan 5,082,176 2,025,913 4,530,569 4,936,253 2,051,667 9,441,068 11,492,735 2,946,105
Other Properties
Paramus, New Jersey - - - 20,467 1,033 19,434 20,467 15,349 1967 1987 (4)
Total Other Properties - - - 20,467 1,033 19,434 20,467 15,349
Total New York 5,082,176 2,025,913 4,530,569 4,956,720 2,052,700 9,460,502 11,513,202 2,961,454
Other
THE MART
THE MART, Illinois $ - $ 64,528 $ 319,146 $ 487,855 $ 64,535 $ 806,994 $ 871,529 $ 416,326 1930 1998 (4)
527 West Kinzie, Illinois - 5,166 - 362 5,166 362 5,528 - 1998
Total THE MART - 69,694 319,146 488,217 69,701 807,356 877,057 416,326
555 California Street, California 1,200,000 223,446 895,379 273,926 223,446 1,169,305 1,392,751 499,906 1922,1969 -1970 2007 (4)
Borgata Land, Atlantic City, NJ - 83,089 - - 83,089 - 83,089 - - 2010
40 East 66th Street Residential, New York - 8,454 13,321 (8,193) 5,273 8,309 13,582 3,761 - 2005 (4)
Annapolis, Maryland - - 9,652 - - 9,652 9,652 5,466 2005 (4)
Wayne Towne Center, New Jersey - - 26,137 49,654 - 75,791 75,791 45,677 2010 (4)
Other - - - 5,593 - 5,593 5,593 3,247 (4)
Total Other 1,200,000 384,683 1,263,635 809,197 381,509 2,076,006 2,457,515 974,383
Leasehold improvements, equipment and other - - - 120,915 - 120,915 120,915 89,512
Total December 31, 2024 $ 6,282,176 $ 2,410,596 $ 5,794,204 $ 5,886,832 $ 2,434,209 $ 11,657,423 $ 14,091,632 $ 4,025,349
________________________________________
(1)Represents contractual debt obligations.
(2)The net basis of Vornado's assets and liabilities for tax reporting purposes is approximately $1.4 billion lower than the amounts reported for financial statement purposes.
(3)Date of original construction - many properties have had substantial renovation or additional construction, see "costs capitalized subsequent to acquisition" column.
(4)Depreciation of the buildings and improvements is calculated over lives ranging from the life of the lease to forty years.
(5)Secured amount outstanding on revolving credit facilities.
VORNADO REALTY TRUST AND VORNADO REALTY L.P.
SCHEDULE III
REAL ESTATE AND ACCUMULATED DEPRECIATION
(Amounts in thousands)
The following is a reconciliation of real estate assets and accumulated depreciation:
Year Ended December 31,
2024 2023 2022
Real Estate
Balance at beginning of period $ 13,801,204 $ 13,314,755 $ 13,217,845
Additions during the period:
Land - 40,145 -
Buildings & improvements and other 431,999 713,740 711,722
14,233,203 14,068,640 13,929,567
Less: Assets sold, written-off, reclassified to ready for sale and deconsolidated 141,571 267,436 614,812
Balance at end of period $ 14,091,632 $ 13,801,204 $ 13,314,755
Accumulated Depreciation
Balance at beginning of period $ 3,752,827 $ 3,470,991 $ 3,376,347
Depreciation expense 396,231 382,638 449,864
4,149,058 3,853,629 3,826,211
Less: Accumulated depreciation on assets sold, written-off and deconsolidated 123,709 100,802 355,220
Balance at end of period $ 4,025,349 $ 3,752,827 $ 3,470,991
(b) Exhibits:
Exhibit No.
3.1
- Articles of Restatement of Vornado Realty Trust, as filed with the State Department of Assessments and Taxation of Maryland on July 30, 2007 - Incorporated by reference to Exhibit 3.75 to Vornado Realty Trust’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2007 (File No. 001-11954), filed on July 31, 2007 *
3.2
- Amended and Restated Bylaws of Vornado Realty Trust, as amended on July 28, 2022 - Incorporated by reference to Exhibit 3.2 to Vornado Realty Trust's Quarterly Report on Form 10-Q for the quarter ended June 30, 2022 (File No. 001-11954), filed on August 1, 2022 *
3.3
- Articles of Amendment to Declaration of Trust, dated September 30, 2016 - Incorporated by reference to Exhibit 3.3 to Vornado Realty Trust’s Annual Report on Form 10-K for the year ended December 31, 2020 (File No. 001-11954), filed on February 16, 2021 *
3.4
- Articles of Amendment of Vornado Realty Trust, as filed with the State Department of Assessments and Taxation of Maryland on October 4, 2016-Incorporated by reference to Annex B to Vornado Realty Trust's Definitive Proxy Statement on Schedule 14A (File No. 001-11954), filed on April 8, 2016 *
3.5
- Articles of Amendment to Declaration of Trust, dated June 13, 2018 - Incorporated by reference to Exhibit 3.54 to Vornado Realty Trust's Quarterly Report on Form 10-Q for the quarter ended June 30, 2018 (File No. 001-11954), filed on July 30, 2018 *
3.6
- Articles of Amendment to Declaration of Trust, dated August 7, 2019 - Incorporated by reference to Exhibit 3.1 to Vornado Realty Trust's Current Report on Form 8-K (File No. 001-11954), filed on August 8, 2019 *
3.7
- Articles Supplementary, 5.40% Series L Cumulative Redeemable Preferred Shares of Beneficial Interest, liquidation preference $25.00 per share, no par value - Incorporated by reference to Exhibit 3.6 to Vornado Realty Trust’s Registration Statement on Form 8-A (File No. 001-11954), filed on January 25, 2013 *
3.8
- Articles Supplementary Classifying Vornado Realty Trust's 5.25% Series M Cumulative Redeemable Preferred Shares of Beneficial Interest, liquidation preference $25.00 per share, no par value - Incorporated by reference to Exhibit 3.7 to Vornado Realty Trust's Registration Statement on Form 8-A (File No. 001-11954), filed on December 13, 2017 *
3.9
- Articles Supplementary Classifying Vornado Realty Trust's 5.25% Series N Cumulative Redeemable Preferred Shares of Beneficial Interest, liquidation preference $25.00 per share, no par value - Incorporated by reference to Exhibit 3.1 to Vornado Realty Trust's Current Report on Form 8-K (File No. 001-11954), filed on November 24, 2020 *
3.10
- Articles Supplementary Classifying Vornado Realty Trust's 4.45% Series O Cumulative Redeemable Preferred Shares of Beneficial Interest, liquidation preference $25.00 per share, no par value - Incorporated by reference to Exhibit 3.1 to Vornado Realty Trust's Current Report on Form 8-K (File No. 001-11954), filed on September 22, 2021 *
3.11
- Second Amended and Restated Agreement of Limited Partnership of Vornado Realty L.P., dated as of October 20, 1997 (the “Partnership Agreement”) - Incorporated by reference to Exhibit 3.26 to Vornado Realty Trust’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2003 (File No. 001-11954), filed on May 8, 2003 *
3.12
- Amendment to the Partnership Agreement, dated as of December 16, 1997 - Incorporated by reference to Exhibit 3.27 to Vornado Realty Trust’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2003 (File No. 001-11954), filed on May 8, 2003 *
3.13
- Second Amendment to the Partnership Agreement, dated as of April 1, 1998 - Incorporated by reference to Exhibit 3.5 to Vornado Realty Trust’s Registration Statement on Form S-3 (File No. 333-50095), filed on April 14, 1998 *
3.14
- Third Amendment to the Partnership Agreement, dated as of November 12, 1998 - Incorporated by reference to Exhibit 3.2 to Vornado Realty Trust’s Current Report on Form 8-K (File No. 001-11954), filed on November 30, 1998 *
3.15
- Fourth Amendment to the Partnership Agreement, dated as of November 30, 1998 - Incorporated by reference to Exhibit 3.1 to Vornado Realty Trust’s Current Report on Form 8-K (File No. 001-11954), filed on February 9, 1999 *
3.16
- Fifth Amendment to the Partnership Agreement, dated as of March 3, 1999 - Incorporated by reference to Exhibit 3.1 to Vornado Realty Trust’s Current Report on Form 8-K (File No. 001-11954), filed on March 17, 1999 *
3.17
- Sixth Amendment to the Partnership Agreement, dated as of March 17, 1999 - Incorporated by reference to Exhibit 3.2 to Vornado Realty Trust’s Current Report on Form 8-K (File No. 001-11954), filed on July 7, 1999 *
3.18
- Seventh Amendment to the Partnership Agreement, dated as of May 20, 1999 - Incorporated by reference to Exhibit 3.3 to Vornado Realty Trust’s Current Report on Form 8-K (File No. 001-11954), filed on July 7, 1999 *
3.19
- Eighth Amendment to the Partnership Agreement, dated as of May 27, 1999 - Incorporated by reference to Exhibit 3.4 to Vornado Realty Trust’s Current Report on Form 8-K (File No. 001-11954), filed on July 7, 1999 *
3.20
- Ninth Amendment to the Partnership Agreement, dated as of September 3, 1999 - Incorporated by reference to Exhibit 3.3 to Vornado Realty Trust’s Current Report on Form 8-K (File No. 001-11954), filed on October 25, 1999 *
3.21
- Tenth Amendment to the Partnership Agreement, dated as of September 3, 1999 - Incorporated by reference to Exhibit 3.4 to Vornado Realty Trust's Current Report on Form 8-K (File No. 001-11954), filed on October 25, 1999 *
3.22
- Eleventh Amendment to the Partnership Agreement, dated as of November 24, 1999 - Incorporated by reference to Exhibit 3.2 to Vornado Realty Trust’s Current Report on Form 8-K (File No. 001-11954), filed on December 23, 1999 *
________________________________
* Incorporated by reference
3.23
- Twelfth Amendment to the Partnership Agreement, dated as of May 1, 2000 - Incorporated by reference to Exhibit 3.2 to Vornado Realty Trust’s Current Report on Form 8-K (File No. 001-11954), filed on May 19, 2000 *
3.24
- Thirteenth Amendment to the Partnership Agreement, dated as of May 25, 2000 - Incorporated by reference to Exhibit 3.2 to Vornado Realty Trust’s Current Report on Form 8-K (File No. 001-11954), filed on June 16, 2000 *
3.25
- Fourteenth Amendment to the Partnership Agreement, dated as of December 8, 2000 - Incorporated by reference to Exhibit 3.2 to Vornado Realty Trust’s Current Report on Form 8-K (File No. 001-11954), filed on December 28, 2000 *
3.26
- Fifteenth Amendment to the Partnership Agreement, dated as of December 15, 2000 - Incorporated by reference to Exhibit 4.35 to Vornado Realty Trust’s Registration Statement on Form S-8 (File No. 333-68462), filed on August 27, 2001 *
3.27
- Sixteenth Amendment to the Partnership Agreement, dated as of July 25, 2001 - Incorporated by reference to Exhibit 3.3 to Vornado Realty Trust’s Current Report on Form 8-K (File No. 001-11954), filed on October 12, 2001 *
3.28
- Seventeenth Amendment to the Partnership Agreement, dated as of September 21, 2001 - Incorporated by reference to Exhibit 3.4 to Vornado Realty Trust’s Current Report on Form 8-K (File No. 001-11954), filed on October 12, 2001 *
3.29
- Eighteenth Amendment to the Partnership Agreement, dated as of January 1, 2002 - Incorporated by reference to Exhibit 3.1 to Vornado Realty Trust’s Current Report on Form 8-K/A (File No. 001-11954), filed on March 18, 2002 *
3.30
- Nineteenth Amendment to the Partnership Agreement, dated as of July 1, 2002 - Incorporated by reference to Exhibit 3.47 to Vornado Realty Trust’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2002 (File No. 001-11954), filed on August 7, 2002 *
3.31
- Twentieth Amendment to the Partnership Agreement, dated April 9, 2003 - Incorporated by reference to Exhibit 3.46 to Vornado Realty Trust’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2003 (File No. 001-11954), filed on May 8, 2003 *
3.32
- Twenty-First Amendment to the Partnership Agreement, dated as of July 31, 2003 - Incorporated by reference to Exhibit 3.47 to Vornado Realty Trust’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2003 (File No. 001-11954), filed on November 7, 2003 *
3.33
- Twenty-Second Amendment to the Partnership Agreement, dated as of November 17, 2003 - Incorporated by reference to Exhibit 3.49 to Vornado Realty Trust’s Annual Report on Form 10-K for the year ended December 31, 2003 (File No. 001-11954), filed on March 3, 2004 *
3.34
- Twenty-Third Amendment to the Partnership Agreement, dated May 27, 2004 - Incorporated by reference to Exhibit 99.2 to Vornado Realty Trust’s Current Report on Form 8-K (File No. 001-11954), filed on June 14, 2004 *
3.35
- Twenty-Fourth Amendment to the Partnership Agreement, dated August 17, 2004 - Incorporated by reference to Exhibit 3.57 to Vornado Realty Trust and Vornado Realty L.P.’s Registration Statement on Form S-3 (File No. 333-122306), filed on January 26, 2005 *
3.36
- Twenty-Fifth Amendment to the Partnership Agreement, dated November 17, 2004 - Incorporated by reference to Exhibit 3.58 to Vornado Realty Trust and Vornado Realty L.P.’s Registration Statement on Form S-3 (File No. 333-122306), filed on January 26, 2005 *
3.37
- Twenty-Sixth Amendment to the Partnership Agreement, dated December 17, 2004 - Incorporated by reference to Exhibit 3.1 to Vornado Realty L.P.’s Current Report on Form 8-K (File No. 000-22685), filed on December 21, 2004 *
3.38
- Twenty-Seventh Amendment to the Partnership Agreement, dated December 20, 2004 - Incorporated by reference to Exhibit 3.2 to Vornado Realty L.P.’s Current Report on Form 8-K (File No. 000-22685), filed on December 21, 2004 *
3.39
- Twenty-Eighth Amendment to the Partnership Agreement, dated December 30, 2004 - Incorporated by reference to Exhibit 3.1 to Vornado Realty L.P.’s Current Report on Form 8-K (File No. 000-22685), filed on January 4, 2005 *
3.40
- Twenty-Ninth Amendment to the Partnership Agreement, dated June 17, 2005 - Incorporated by reference to Exhibit 3.1 to Vornado Realty L.P.’s Current Report on Form 8-K (File No. 000-22685), filed on June 21, 2005 *
3.41
- Thirtieth Amendment to the Partnership Agreement, dated August 31, 2005 - Incorporated by reference to Exhibit 3.1 to Vornado Realty L.P.’s Current Report on Form 8-K (File No. 000-22685), filed on September 1, 2005 *
3.42
- Thirty-First Amendment to the Partnership Agreement, dated September 9, 2005 - Incorporated by reference to Exhibit 3.1 to Vornado Realty L.P.’s Current Report on Form 8-K (File No. 000-22685), filed on September 14, 2005 *
3.43
- Thirty-Second Amendment and Restated Agreement of Limited Partnership, dated as of December 19, 2005 - Incorporated by reference to Exhibit 3.59 to Vornado Realty L.P.’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2006 (File No. 000-22685), filed on May 8, 2006 *
3.44
- Thirty-Third Amendment to Second Amended and Restated Agreement of Limited Partnership, dated as of April 25, 2006 - Incorporated by reference to Exhibit 10.2 to Vornado Realty Trust’s Form 8-K (File No. 001-11954), filed on May 1, 2006 *
3.45
- Thirty-Fourth Amendment to Second Amended and Restated Agreement of Limited Partnership, dated as of May 2, 2006 - Incorporated by reference to Exhibit 3.1 to Vornado Realty L.P.’s Current Report on Form 8-K (File No. 000-22685), filed on May 3, 2006 *
3.46
- Thirty-Fifth Amendment to Second Amended and Restated Agreement of Limited Partnership, dated as of August 17, 2006 - Incorporated by reference to Exhibit 3.1 to Vornado Realty L.P.’s Form 8-K (File No. 000-22685), filed on August 23, 2006 *
3.47
- Thirty-Sixth Amendment to Second Amended and Restated Agreement of Limited Partnership, dated as of October 2, 2006 - Incorporated by reference to Exhibit 3.1 to Vornado Realty L.P.’s Form 8-K (File No. 000-22685), filed on January 22, 2007 *
__________________________________
* Incorporated by reference
3.48
- Thirty-Seventh Amendment to Second Amended and Restated Agreement of Limited Partnership, dated as of June 28, 2007 - Incorporated by reference to Exhibit 3.1 to Vornado Realty L.P.'s Current Report on Form 8-K (File No. 000-22685), filed on June 27, 2007 *
3.49
- Thirty-Eighth Amendment to Second Amended and Restated Agreement of Limited Partnership, dated as of June 28, 2007 - Incorporated by reference to Exhibit 3.2 to Vornado Realty L.P.'s Current Report on Form 8-K (File No. 000-22685), filed on June 27, 2007 *
3.50
- Thirty-Ninth Amendment to Second Amended and Restated Agreement of Limited Partnership, dated as of June 28, 2007 - Incorporated by reference to Exhibit 3.3 to Vornado Realty L.P.’s Current Report on Form 8-K (File No. 000-22685), filed on June 27, 2007 *
3.51
- Fortieth Amendment to Second Amended and Restated Agreement of Limited Partnership, dated as of June 28, 2007 - Incorporated by reference to Exhibit 3.4 to Vornado Realty L.P.’s Current Report on Form 8-K (File No. 000-22685), filed on June 27, 2007 *
3.52
- Forty-First Amendment to Second Amended and Restated Agreement of Limited Partnership, dated as of March 31, 2008 - Incorporated by reference to Exhibit 3.44 to Vornado Realty Trust’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2008 (file No. 001-11954), filed on May 6, 2008 *
3.53
- Forty-Second Amendment to Second Amended and Restated Agreement of Limited Partnership, dated as of December 17, 2010 - Incorporated by reference to Exhibit 99.1 to Vornado Realty L.P.'s Current Report on Form 8-K (File No 000-22685), filed on December 21, 2010 *
3.54
- Forty-Third Amendment to Second Amended and Restated Agreement of Limited Partnership, dated as of April 20, 2011 - Incorporated by reference to Exhibit 3.1 to Vornado Realty L.P.'s Current Report on Form 8-K (File No. 000-22685), filed on April 21, 2011 *
3.55
- Forty-Fourth Amendment to Second Amended and Restated Agreement of Limited Partnership of Vornado Realty L.P., dated as, of March 30, 2012 - Incorporated by reference to Exhibit 99.1 to Vornado Realty L.P.'s Current Report on Form 8-K (File No. 001-34482), filed on April 5, 2012 *
3.56
- Forty-Fourth Amendment to Second Amended and Restated Agreement of Limited Partnership dated as of July 18, 2012 - Incorporated by reference to Exhibit 3.1 to Vornado Realty L.P.’s Current Report on Form 8-K (File No. 001-34482), filed on July 18, 2012 *
3.57
- Forty-Fifth Amendment to Second Amended and Restated Agreement of Limited Partnership, dated as of January 25, 2013 - Incorporated by reference to Exhibit 3.1 to Vornado Realty L.P.’s Current Report on Form 8-K (File No. 001-34482), filed on January 25, 2013 *
3.58
- Forty-Sixth Amendment to Second Amended and Restated Agreement of Limited Partnership of Vornado Realty L.P., dated April 1, 2015 - Incorporated by reference to Exhibit 3.1 to Vornado Realty L.P.'s Current Report on Form 8-K (File No. 001-34482), filed on April 2, 2015 *
3.59
- Forty-Seventh Amendment to Second Amended and Restated Agreement of Limited Partnership of Vornado Realty L.P., dated December 13, 2017 - Incorporated by reference to Exhibit 3.2 to Vornado Realty L.P.'s Current Report on Form 8-K (File No. 001-34482), filed on December 13, 2017 *
3.60
** - Forty-Eighth Amendment to Second Amended and Restated Agreement of Limited Partnership of Vornado Realty L.P., dated as of January 12, 2018 - Incorporated by reference to Exhibit 3.53 to Vornado Realty Trust's Annual Report on 10-K for the year ended December 31, 2017 (File No. 001-11954), filed on February 12, 2018 *
3.61
- Forty-Ninth Amendment to Second Amended and Restated Agreement of Limited Partnership of Vornado Realty L.P., dated as of August 7, 2019 - Incorporated by reference to Exhibit 3.2 to Vornado Realty Trust's Current Report on Form 8-K (File No. 001-11954), filed on August 8, 2019 *
3.62
- Fiftieth Amendment to Second Amended and Restated Agreement of Limited Partnership of Vornado Realty L.P., dated as of November 24, 2020 - Incorporated by reference to Exhibit 3.2 to Vornado Realty Trust's Current Report on Form 8-K (File No. 001-11954), filed on November 24, 2020 *
3.63
- Fifty-First Amendment to Second Amended and Restated Agreement of Limited Partnership of Vornado Realty L.P., dated as of September 22, 2021 - Incorporated by reference to Exhibit 3.2 to Vornado Realty Trust's Current Report on Form 8-K (File No. 001-11954), filed on September 22, 2021 *
4.1
- Indenture, dated as of November 25, 2003, between Vornado Realty L.P. and The Bank of New York, as Trustee - Incorporated by reference to Exhibit 4.10 to Vornado Realty Trust’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2005 (File No. 001-11954), filed on April 28, 2005 *
4.2
- Indenture, dated as of November 20, 2006, among Vornado Realty Trust, as Issuer, Vornado Realty L.P., as Guarantor and The Bank of New York, as Trustee - Incorporated by reference to Exhibit 4.1 to Vornado Realty Trust’s Current Report on Form 8-K (File No. 001-11954), filed on November 27, 2006 *
Certain instruments defining the rights of holders of long-term debt securities of Vornado Realty Trust and its subsidiaries are omitted pursuant to Item 601(b)(4)(iii) of Regulation S-K. Vornado Realty Trust hereby undertakes to furnish to the Securities and Exchange Commission, upon request, copies of such instruments
4.3
- Description of Vornado Realty Trust securities registered pursuant to Section 12 of the Securities Exchange Act of 1934 ***
4.4
- Description of Class A units of Vornado Realty L.P. and certain provisions of its agreement of limited partnership ***
__________________________________________
* Incorporated by reference
** Management contract or compensatory agreement
*** Filed herewith
10.1 - Registration Rights Agreement between Vornado, Inc. and Steven Roth, dated December 29, 1992 - Incorporated by reference to Vornado Realty Trust’s Annual Report on Form 10-K for the year ended December 31, 1992 (File No. 001-11954), filed February 16, 1993 *
10.2 ** - Management Agreement between Interstate Properties and Vornado, Inc. dated July 13, 1992 - Incorporated by reference to Vornado, Inc.’s Annual Report on Form 10-K for the year ended December 31, 1992 (File No. 001-11954), filed February 16, 1993 *
10.3
** - Amendment to Real Estate Retention Agreement, dated as of July 3, 2002, by and between Alexander’s, Inc. and Vornado Realty L.P. - Incorporated by reference to Exhibit 10(i)(E)(3) to Alexander’s Inc.’s Quarterly Report for the quarter ended June 30, 2002 (File No. 001-06064), filed on August 7, 2002 *
10.4
** - 59th Street Real Estate Retention Agreement, dated as of July 3, 2002, by and between Vornado Realty L.P., 731 Residential LLC and 731 Commercial LLC - Incorporated by reference to Exhibit 10(i)(E)(4) to Alexander’s Inc.’s Quarterly Report for the quarter ended June 30, 2002 (File No. 001-06064), filed on August 7, 2002 *
10.5
- Amended and Restated Management and Development Agreement, dated as of July 3, 2002, by and between Alexander's, Inc., the subsidiaries party thereto and Vornado Management Corp. - Incorporated by reference to Exhibit 10(i)(F)(1) to Alexander's Inc.'s Quarterly Report on Form 10-Q for the quarter ended June 30, 2002 (File No. 001-06064), filed on August 7, 2020 *
10.6
** - Second Amendment to Real Estate Retention Agreement, dated January 1, 2007, by and between Vornado Realty L.P. and Alexander’s Inc. - Incorporated by reference to Exhibit 10.55 to Vornado Realty Trust’s Annual Report on Form 10-K for the year ended December 31, 2006 (File No. 001-11954), filed on February 27, 2007 *
10.7
** - Amendment to 59th Street Real Estate Retention Agreement, dated January 1, 2007, by and among Vornado Realty L.P., 731 Retail One LLC, 731 Restaurant LLC, 731 Office One LLC and 731 Office Two LLC. - Incorporated by reference to Exhibit 10.56 to Vornado Realty Trust’s Annual Report on Form 10-K for the year ended December 31, 2006 (File No. 001-11954), filed on February 27, 2007 *
10.8
** - Vornado Realty Trust's 2010 Omnibus Share Plan - Incorporated by reference to Exhibit 10.41 to Vornado Realty Trust's Quarterly Report on Form 10-Q for the quarter ended June 30, 2010 (File No. 001-11954) filed on August 3, 2010 *
10.9
** - Form of Vornado Realty Trust 2010 Omnibus Share Plan Restricted LTIP Unit Agreement - Incorporated by reference to Exhibit 99.3 to Vornado Realty Trust's Current Report on Form 8-K (File No. 001-11954) filed on April 5, 2012 *
10.10
** - Employment agreement between Vornado Realty Trust and Michael J. Franco dated January 10, 2014 - Incorporated by reference to Exhibit 10.52 to Vornado Realty Trust's Quarterly Report on Form 10-Q for the quarter ended March 31, 2014 (File No. 001-11954), filed on May 5, 2014 *
10.11
** - Form of Vornado Realty Trust 2010 Omnibus Share Plan AO LTIP Unit Award Agreement - Incorporated by reference to Exhibit 10.34 to Vornado Realty Trust's Annual Report on Form 10-K for the year ended December 31, 2017 (File No. 001-11954), filed on February 12, 2018 *
10.12
** - Form of 2019 Amendment to Restricted LTIP Unit and Restricted Stock Agreements - Incorporated by reference to Exhibit 10.37 to Vornado Realty Trust's Annual Report on Form 10-K for the year ended December 31, 2018 (File No. 001-11954), filed on February 11, 2019 *
10.13
** - Form of Vornado Realty Trust 2010 Omnibus Share Plan Restricted LTIP Unit Agreement - Incorporated by reference to Exhibit 10.38 to Vornado Realty Trust's Annual Report on Form 10-K for the year ended December 31, 2018 (File No. 001-11954), filed on February 11, 2019 *
10.14
** - Vornado Realty Trust 2019 Omnibus Share Plan - Incorporated by reference to Annex B to Vornado Realty Trust's Proxy Statement dated April 5, 2019 (File No. 001-11954), filed on April 5, 2019 *
10.15
- Transaction Agreement between Vornado Realty L.P. and Crown Jewel Partner LLC, dated April 18, 2019 - Incorporated by reference to Exhibit 10.42 to Vornado Realty Trust's Quarterly Report on Form 10-Q for the quarter ended June 30, 2019 (File No. 001-11954), filed on July 29, 2019 *
10.16
** - Form of Vornado Realty Trust 2019 Omnibus Share Plan Restricted LTIP Unit Agreement - Incorporated by reference to Exhibit 10.33 to Vornado Realty Trust's Quarterly Report on Form 10-K for the year ended December 31, 2019 (File No. 001-11954), filed on February 18, 2020 *
10.17
** - Form of Vornado Realty Trust 2019 Omnibus Share Plan Incentive/Non-Qualified Stock Option Agreement - Incorporated by reference to Exhibit 10.34 to Vornado Realty Trust's Quarterly Report on Form 10-K for the year ended December 31, 2019 (File No. 001-11954), filed on February 18, 2020 *
10.18
** - Employment agreement between Vornado Realty Trust and Glen J. Weiss dated May 25, 2018 - Incorporated by reference to Exhibit 10.35 to Vornado Realty Trust's Quarterly Report on Form 10-Q for the quarter ended March 31, 2020 (File No. 001-11954), filed on May 4, 2020 *
10.19
** - Employment agreement between Vornado Realty Trust and Haim Chera dated April 19, 2019 - Incorporated by reference to Exhibit 10.36 to Vornado Realty Trust's Quarterly Report on Form 10-Q for the quarter ended March 31, 2020 (File No. 001-11954), filed on May 4, 2020 *
10.20
** - Form of Vornado Realty Trust 2022 Long-term Performance Plan LTIP Unit Award Agreement - Incorporated by reference to Exhibit 10.36 to Vornado Realty Trust's Annual Report on form 10-K for the year ended December 31, 2021 (File No. 001-11954), filed on February 14, 2022 *
10.21
** - Employment agreement between Vornado Realty Trust and Barry Langer dated June 4, 2018 - Incorporated by reference to Exhibit 10.37 to Vornado Realty Trust's Quarterly Report on Form 10-Q for the quarter ended March 31, 2022 (File No. 001-11954), filed on May 2, 2022 *
__________________________________________
* Incorporated by reference
** Management contract or compensatory agreement
10.22
- Second Amended and Restated Term Loan Agreement dated as of June 30, 2022, among Vornado Realty L.P., as Borrower, Vornado Realty Trust as General Partner, the Banks listed on the signature pages thereof, and JPMorgan Chase Bank N.A., as Administrative Agent for the Banks - Incorporated by reference to Exhibit 10.38 to Vornado Realty Trust's Quarterly Report on Form 10-Q for the quarter ended June 30, 2022 (File No. 001-11954), filed on August 1, 2022 *
10.23
- Third Amended and Restated Revolving Credit Agreement dated as of June 30, 2022, among Vornado Realty L.P., as Borrower, Vornado Realty Trust as General Partner, the Banks listed on the signature pages thereof, and JPMorgan Chase Bank N.A., as Administrative Agent for the Banks - Incorporated by reference to Exhibit 10.40 to Vornado Realty Trust's Quarterly Report on Form 10-Q for the quarter ended June 30, 2022 (File No. 001-11954), filed on August 1, 2022 *
10.24
** - Form of Vornado Realty Trust 2019 Omnibus Share Plan Restricted LTIP Unit Agreement granted in 2023 - Incorporated by reference to Exhibit 10.36 to Vornado Realty Trust's Annual Report on Form 10-K for the year ended December 31, 2022 (File No. 001-11954), filed on February 13, 2023 *
10.25
** - Form of Vornado Realty Trust 2023 Long-term Performance Plan LTPP Unit Award Agreement - Incorporated by reference to Exhibit 10.37 to Vornado Realty Trust's Annual Report on Form 10-K for the year ended December 31, 2022 (File No. 001-11954), filed on February 13, 2023 *
10.26
** - Form of Vornado Realty Trust’s 2023 Omnibus Share Plan - Incorporated by reference to Annex A to Vornado Realty Trust’s Proxy Statement dated April 7, 2023 (File No. 001-11954), filed on April 7, 2023 *
10.27
** - Form of Vornado Realty Trust 2023 Omnibus Share Plan Restricted LTIP Unit Agreement - Incorporated by reference to Exhibit 10.1 to Vornado Realty Trust’s Current Report on Form 8-K (File No. 001-11954), filed on July 3, 2023 *
10.28
** - Form of Vornado Realty Trust 2023 Omnibus Share Plan Performance Conditioned AO LTIP Unit Award Agreement - Incorporated by reference to Exhibit 10.2 to Vornado Realty Trust’s Current Report on Form 8-K (File No. 001-11954), filed on July 3, 2023 *
10.29
- Third Amended and Restated Revolving Credit Agreement dated as of May 3, 2024, among Vornado Realty L.P., as Borrower, Vornado Realty Trust as General Partner, the Banks listed on the signature pages thereof, and JPMorgan Chase Bank N.A., as Administrative Agent for the Banks - Incorporated by reference to Exhibit 10.34 to Vornado Realty Trust's Quarterly Report on Form 10-Q for the quarter ended June 30, 2024 (File No. 001-11954), filed on August 5, 2024 *
10.30
- Amendment No. 1 to Third Amended and Restated Revolving Credit Agreement dated as of May 14, 2024, among Vornado Realty L.P., as Borrower, the Banks listed on signature pages thereof, and JPMorgan Chase Bank N.A., as Administrative Agent for the Banks - Incorporated by reference to Exhibit 10.35 to Vornado Realty Trust's Quarterly Report on Form 10-Q for the quarter ended June 30, 2024 (File No. 001-11954), filed on August 5, 2024 *
10.31
- Amendment No. 1 to Second Amended and Restated Term Loan Agreement dated as of May 14, 2024, among Vornado Realty L.P., as Borrower, the Banks listed on signature pages thereof, and JPMorgan Chase Bank N.A., as Administrative Agent for the Banks - Incorporated by reference to Exhibit 10.36 to Vornado Realty Trust's Quarterly Report on Form 10-Q for the quarter ended June 30, 2024 (File No. 001-11954), filed on August 5, 2024 *
97.1
- Vornado Realty Trust Restatement Clawback Policy - Incorporated by reference to Exhibit 97.1 to Vornado Realty Trust's Annual Report on Form 10-K for the year ended December 31, 2023 (File No. 001-11954), filed on February 12, 2024 *
__________________________________________
* Incorporated by reference
** Management contract or compensatory agreement
19.1
- Insider Trading Policy ***
- Subsidiaries of Vornado Realty Trust and Vornado Realty L.P. ***
23.1
- Consent of Independent Registered Public Accounting Firm for Vornado Realty Trust ***
23.2
- Consent of Independent Registered Public Accounting Firm for Vornado Realty L.P. ***
31.1
- Rule 13a-14 (a) Certification of the Chief Executive Officer of Vornado Realty Trust ***
31.2
- Rule 13a-14 (a) Certification of the Chief Financial Officer of Vornado Realty Trust ***
31.3
- Rule 13a-14 (a) Certification of the Chief Executive Officer of Vornado Realty L.P. ***
31.4
- Rule 13a-14 (a) Certification of the Chief Financial Officer of Vornado Realty L.P. ***
32.1
- Section 1350 Certification of the Chief Executive Officer of Vornado Realty Trust ***
32.2
- Section 1350 Certification of the Chief Financial Officer of Vornado Realty Trust ***
32.3
- Section 1350 Certification of the Chief Executive Officer of Vornado Realty L.P. ***
32.4
- Section 1350 Certification of the Chief Financial Officer of Vornado Realty L.P. ***
101 - The following financial information from Vornado Realty Trust and Vornado Realty L.P. Annual Report on Form 10-K for the year ended December 31, 2024, formatted in Inline Extensible Business Reporting Language (iXBRL) includes: (i) consolidated balance sheets, (ii) consolidated statements of income, (iii) consolidated statements of comprehensive income, (iv) consolidated statements of changes in equity, (v) consolidated statements of cash flows, and (vi) the notes to consolidated financial statements.
***
104 - The cover page from the Vornado Realty Trust and Vornado Realty L.P. Annual Report on Form 10-K for the year ended December 31, 2024, formatted as iXBRL and contained in Exhibit 101.
***
_____________________________
*** Filed herewith