Vornado Sells Lexington Realty Trust Shares
and Urban Edge Properties Shares
Calls for Redemption its
$400 Million 5.00% Notes Due January 2022
NEW YORK…..VORNADO REALTY TRUST (NYSE:VNO) announced that it has sold all of the 18,468,969 common shares of Lexington Realty Trust (NYSE: LXP) that it owns realizing net proceeds of approximately $167.7 million. This sale will result in a financial statement gain of approximately $16.1 million which will be recognized in the first quarter of 2019.
Vornado also sold all of the 5,717,184 common shares of Urban Edge Properties (NYSE:UE) that it owns realizing net proceeds of approximately $108.5 million. This sale will result in a financial statement gain of approximately $62.4 million which will also be recognized in the first quarter of 2019.
Further, Vornado Realty L.P., has called for redemption all of its $400 million principal amount of 5.00% senior unsecured notes. The notes, which were scheduled to mature on January 15, 2022, will be redeemed on March 31, 2019 at a redemption price of approximately 105.51% of the principal amount plus accrued interest. Vornado will incur a charge of approximately $23 million in the first quarter of 2019 relating to the prepayment and write off of unamortized financing costs of the 2022 notes.
The gains and charge from these three transactions will be excluded from "FFO, as Adjusted".
Vornado Realty Trust is a fully-integrated equity real estate investment trust.