Vornado Announces Certain Items to be Included in its Third Quarter 2017 Financial Results
NEW YORK…..Vornado Realty Trust (New York Stock Exchange: VNO) today announced that its financial results for the quarter ended September 30, 2017 will include the following:
$53.6 million of transaction costs (previously announced) in connection with the spin-off of JBG SMITH on July 17, 2017.
JBG SMITH, Vornado’s former Washington DC segment, had net income of $3.9 million ($10.1 million on a Funds From Operations (non-GAAP) (“FFO”) basis) for the period from July 1, 2017 through July 17, 2017 before the spin-off.
Both the transaction costs and the operating results will be classified as discontinued operations.
$44.5 million non-cash impairment loss on Vornado’s investment in Pennsylvania REIT (NYSE: PEI), as required by GAAP because of a sustained trading stock price below our carrying value. Vornado received PEI operating partnership units as part of the sale proceeds of the Springfield Mall in March 2015.
$7.7 million of negative mark-to-market fair value adjustments from Vornado’s real estate fund (which is in wind down).
$1.8 million net loss from other items ($1.0 million of income on an FFO basis).
The above amounts aggregate to a net loss of $0.51 per diluted share, after noncontrolling interests, which will be included in Vornado’s third 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 net loss of $0.47 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 review 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.