Vornado Announces Certain Items to be Included in its Fourth Quarter 2017 Financial Results
NEW YORK…..Vornado Realty Trust (NYSE: VNO) today announced that its financial results for the quarter ended December 31, 2017 will include the following:
$34.8 million of tax expense related to the reduction of our taxable REIT subsidiaries deferred tax assets (primarily 220 Central Park South) resulting from a decrease in corporate tax rates under the December 22, 2017 Tax Cuts and Jobs Act;
$4.8 million of expense related to the December 13, 2017 prepayment of our $450 million aggregate principal amount of 2.50% senior unsecured notes due 2019;
$1.0 million net loss from other items, including the real estate fund.
The above amounts aggregate to a reduction in income of $0.20 per diluted share, after noncontrolling interests, which will be included in Vornado’s fourth quarter 2017 “net income attributable to common shareholders” and will be excluded from “net income attributable to common shareholders, as adjusted.” On an FFO basis, the above amounts aggregate to a reduction of $0.18 per diluted share, after noncontrolling interests, which will be included in “total FFO” and will be excluded from “FFO, as adjusted.”
Vornado notes that the above amounts are preliminary estimates and subject to the completion of financial closing procedures and audit procedures performed by its independent auditors. There can be no assurance that Vornado’s final results will not differ from these preliminary estimates as a result of quarter-end closing, review procedures, or review adjustments, and any such changes could be material.