Vornado Announces Certain Items to be Included in its Second Quarter 2018 Financial Results
NEW YORK…..Vornado Realty Trust (NYSE: VNO) today announced that its financial results for the quarter ended June 30, 2018 will include the following items that affect the comparability of Vornado’s financial results:
a $23.6 million net gain (not included in FFO) from the $45.0 million sale of 27 Washington Square North. Vornado acquired the property in December 2015 for $20.0 million;
$16.0 million of income and FFO related to the change in fair value of marketable securities;
$5.5 million of income and FFO from a profit participation on the April 2018 sale of 701 Seventh Avenue. Vornado received this kicker in connection with its 25% participation in an October 2012, $137.5 million mezzanine loan, which was repaid in January 2014;
$0.4 million of net loss ($2.3 million of positive FFO) from other items.
The above amounts resulted in additional net income of $0.22 per diluted share which will be included in Vornado’s second quarter 2018 “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 resulted in an additional $0.12 per diluted share which will be included in “total FFO attributable to common shareholders plus assumed conversions” and will be excluded from “FFO attributable to common shareholders plus assumed conversions, as adjusted.”
The above amounts are preliminary estimates. There can be no assurance that Vornado’s final results will not differ from these preliminary estimates as a result of quarter-end closing procedures, review procedures, or review adjustments, and any such changes could be material.