Vornado Announces Certain Items to be Included in its First Quarter 2018 Financial Results
NEW YORK…..Vornado Realty Trust (NYSE: VNO) today announced that its financial results for the quarter ended March 31, 2018 will include the following:
$34.7 million of expense related to the change in fair value of marketable securities resulting from a new GAAP accounting standard effective January 1, 2018. Previously, changes in the fair value of marketable securities were recognized through “accumulated other comprehensive income” on Vornado’s consolidated balance sheets and did not impact its consolidated statements of income;
$23.5 million of expense related to Vornado’s share of potential additional New York City real property transfer taxes which Vornado is contesting as previously disclosed on Current Report on Form 8-K dated March 2, 2018;
$14.5 million of expense for the write-off of Series G and Series I issuance costs upon their redemption in January 2018 as previously disclosed on Annual Report on Form 10-K dated February 12, 2018;
$6.5 million net loss from other items.
The above amounts resulted in a reduction in net income of $0.39 per diluted share which will be included in Vornado’s first quarter 2018 “net loss 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 a reduction of $0.37 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, review procedures, or review adjustments, and any such changes could be material.