Cover
Cover | 6 Months Ended |
Jun. 30, 2023 shares | |
Entity Information [Line Items] | |
Document Type | 10-Q |
Document Quarterly Report | true |
Document Period End Date | Jun. 30, 2023 |
Document Transition Report | false |
Entity File Number | 001-11954 |
Entity Registrant Name | Vornado Realty Trust |
Entity Incorporation, State or Country Code | MD |
Entity Tax Identification Number | 22-1657560 |
Entity Address, Address Line One | 888 Seventh Avenue, |
Entity Address, City or Town | New York, |
Entity Address, State or Province | NY |
Entity Address, Postal Zip Code | 10019 |
City Area Code | (212) |
Local Phone Number | 894-7000 |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Large Accelerated Filer |
Entity Small Business | false |
Entity Emerging Growth Company | false |
Entity Shell Company | false |
Entity Common Stock, Shares Outstanding | 190,543,866 |
Entity Central Index Key | 0000899689 |
Document Fiscal Year Focus | 2023 |
Document Fiscal Period Focus | Q2 |
Amendment Flag | false |
Current Fiscal Year End Date | --12-31 |
Common Shares of beneficial interest, $.04 par value per share | |
Entity Information [Line Items] | |
Title of 12(b) Security | Common Shares of beneficial interest, $.04 par value per share |
Entity Trading Symbol | VNO |
Security Exchange Name | NYSE |
5.40% Series L | |
Entity Information [Line Items] | |
Title of 12(b) Security | 5.40% Series L |
Entity Trading Symbol | VNO/PL |
Security Exchange Name | NYSE |
5.25% Series M | |
Entity Information [Line Items] | |
Title of 12(b) Security | 5.25% Series M |
Entity Trading Symbol | VNO/PM |
Security Exchange Name | NYSE |
5.25% Series N | |
Entity Information [Line Items] | |
Title of 12(b) Security | 5.25% Series N |
Entity Trading Symbol | VNO/PN |
Security Exchange Name | NYSE |
4.45% Series O | |
Entity Information [Line Items] | |
Title of 12(b) Security | 4.45% Series O |
Entity Trading Symbol | VNO/PO |
Security Exchange Name | NYSE |
Vornado Realty L.P. | |
Entity Information [Line Items] | |
Entity File Number | 001-34482 |
Entity Registrant Name | VORNADO REALTY LP |
Entity Incorporation, State or Country Code | DE |
Entity Tax Identification Number | 13-3925979 |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Non-accelerated Filer |
Entity Small Business | false |
Entity Emerging Growth Company | false |
Entity Shell Company | false |
Entity Central Index Key | 0001040765 |
Document Fiscal Year Focus | 2023 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Real estate, at cost: | ||
Land | $ 2,457,589 | $ 2,451,828 |
Buildings and improvements | 9,839,556 | 9,804,204 |
Development costs and construction in progress | 1,177,290 | 933,334 |
Leasehold improvements and equipment | 127,319 | 125,389 |
Total | 13,601,754 | 13,314,755 |
Less accumulated depreciation and amortization | (3,625,270) | (3,470,991) |
Real estate, net | 9,976,484 | 9,843,764 |
Right-of-use assets | 685,536 | 684,380 |
Cash and cash equivalents | 1,133,693 | 889,689 |
Restricted cash | 178,440 | 131,468 |
Investments in U.S. Treasury bills | 0 | 471,962 |
Tenant and other receivables | 87,551 | 81,170 |
Investments in partially owned entities | 2,641,297 | 2,665,073 |
220 Central Park South condominium units ready for sale | 39,098 | 43,599 |
Receivable arising from the straight-lining of rents | 693,220 | 694,972 |
Deferred leasing costs, net of accumulated amortization of $249,974 and $237,395 | 359,752 | 373,555 |
Identified intangible assets, net of accumulated amortization of $103,094 and $98,139 | 134,683 | 139,638 |
Other assets | 508,085 | 474,105 |
Assets | 16,437,839 | 16,493,375 |
LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND EQUITY | ||
Mortgages payable, net | 5,715,138 | 5,829,018 |
Senior unsecured notes, net | 1,192,853 | 1,191,832 |
Unsecured term loan, net | 793,864 | 793,193 |
Unsecured revolving credit facilities | 575,000 | 575,000 |
Lease liabilities | 744,696 | 735,969 |
Accounts payable and accrued expenses | 504,295 | 450,881 |
Deferred revenue | 35,884 | 39,882 |
Deferred compensation plan | 99,050 | 96,322 |
Other liabilities | 302,233 | 268,166 |
Total liabilities | 9,963,013 | 9,980,263 |
Commitments and contingencies | ||
Redeemable noncontrolling interests: | ||
Total redeemable noncontrolling interests | 480,296 | 436,732 |
Shareholders' equity: | ||
Preferred shares of beneficial interest: no par value per share; authorized 110,000,000 shares; issued and outstanding 48,792,902 shares | 1,182,459 | 1,182,459 |
Common shares of beneficial interest: $0.04 par value per share; authorized 250,000,000 shares; issued and outstanding 190,543,866 and 191,866,880 shares | 7,601 | 7,654 |
Additional capital | 8,331,228 | 8,369,228 |
Earnings less than distributions | (3,938,202) | (3,894,580) |
Accumulated other comprehensive income | 151,771 | 174,967 |
Total shareholders' / partners' equity | 5,734,857 | 5,839,728 |
Noncontrolling interests in consolidated subsidiaries | 259,673 | 236,652 |
Total equity | 5,994,530 | 6,076,380 |
Total liabilities, redeemable noncontrolling interests / partnership units and equity | 16,437,839 | 16,493,375 |
Partnership Interest | ||
Redeemable noncontrolling interests: | ||
Class A units - 17,024,444 and 14,416,891 units outstanding | 406,741 | 345,157 |
Series D cumulative redeemable preferred units - 141,400 units outstanding | 3,535 | 3,535 |
Total redeemable noncontrolling interests | 410,276 | 348,692 |
Subsidiary | ||
Redeemable noncontrolling interests: | ||
Total redeemable noncontrolling interests | $ 70,020 | $ 88,040 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parentheticals) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
ASSETS | ||
Deferred leasing costs, accumulated amortization | $ 249,974 | $ 237,395 |
Identified intangible assets, accumulated amortization | $ 103,094 | $ 98,139 |
LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND EQUITY | ||
Preferred shares of beneficial interest: par value per share (in dollars per share) | $ 0 | $ 0 |
Preferred shares of beneficial interest: authorized shares (shares) | 110,000,000 | 110,000,000 |
Preferred shares of beneficial interest: issued shares (shares) | 48,792,902 | 48,792,902 |
Preferred shares of beneficial interest: outstanding shares (shares) | 48,792,902 | 48,792,902 |
Common shares of beneficial interest: par value per share (in dollars per share) | $ 0.04 | $ 0.04 |
Common shares of beneficial interest: authorized shares (shares) | 250,000,000 | 250,000,000 |
Common shares of beneficial interest: issued shares (shares) | 190,543,866 | 191,866,880 |
Common shares of beneficial interest: outstanding shares (shares) | 190,543,866 | 191,866,880 |
Class A Unit | ||
LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND EQUITY | ||
Outstanding partnership units held by third parties (shares) | 17,024,444 | 14,416,891 |
Cumulative Redeemable Preferred Unit | ||
LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND EQUITY | ||
Outstanding partnership units held by third parties (shares) | 141,400 | 141,400 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
REVENUES: | ||||
Total revenues | $ 472,359 | $ 453,494 | $ 918,282 | $ 895,624 |
EXPENSES: | ||||
Operating | (222,723) | (222,309) | (451,496) | (438,838) |
Depreciation and amortization | (107,162) | (118,662) | (213,727) | (236,105) |
General and administrative | (39,410) | (31,902) | (81,005) | (73,118) |
(Expense) benefit from deferred compensation plan liability | (2,182) | 7,594 | (5,910) | 9,538 |
Transaction related costs and other | (30) | (2,960) | (688) | (3,965) |
Total expenses | (371,507) | (368,239) | (752,826) | (742,488) |
Income from partially owned entities | 37,272 | 25,720 | 53,938 | 59,434 |
(Loss) income from real estate fund investments | (102) | (142) | (121) | 5,532 |
Interest and other investment income, net | 13,255 | 3,036 | 22,858 | 4,054 |
Income (loss) from deferred compensation plan assets | 2,182 | (7,594) | 5,910 | (9,538) |
Interest and debt expense | (87,165) | (62,640) | (173,402) | (114,749) |
Net gains on disposition of wholly owned and partially owned assets | 936 | 28,832 | 8,456 | 35,384 |
Income before income taxes | 67,230 | 72,467 | 83,095 | 133,253 |
Income tax expense | (4,497) | (3,564) | (9,164) | (10,975) |
Net income | 62,733 | 68,903 | 73,931 | 122,278 |
Less net loss (income) attributable to noncontrolling interests in: | ||||
Consolidated subsidiaries | 2,781 | 826 | 12,709 | (8,548) |
Operating Partnership | (3,608) | (3,782) | (4,037) | (5,776) |
Net income attributable to Vornado / Vornado Realty L.P. | 61,906 | 65,947 | 82,603 | 107,954 |
Preferred share dividends / unit distributions | (15,529) | (15,529) | (31,058) | (31,058) |
NET INCOME attributable to common shareholders / Class A unitholders | $ 46,377 | $ 50,418 | $ 51,545 | $ 76,896 |
INCOME PER COMMON SHARE - BASIC: | ||||
Net income per common share(in dollars per share) | $ 0.24 | $ 0.26 | $ 0.27 | $ 0.40 |
Weighted average shares outstanding, basic (in shares) | 191,468 | 191,750 | 191,668 | 191,737 |
INCOME PER COMMON SHARE - DILUTED: | ||||
Net income per common share (in dollars per share) | $ 0.24 | $ 0.26 | $ 0.27 | $ 0.40 |
Weighted average shares outstanding, diluted (in shares) | 194,804 | 192,039 | 194,364 | 192,047 |
Rental revenues | ||||
REVENUES: | ||||
Total revenues | $ 418,834 | $ 405,194 | $ 815,627 | $ 802,477 |
Fee and other income | ||||
REVENUES: | ||||
Total revenues | $ 53,525 | $ 48,300 | $ 102,655 | $ 93,147 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 62,733 | $ 68,903 | $ 73,931 | $ 122,278 |
Other comprehensive income (loss): | ||||
Change in fair value of consolidated interest rate swaps and other | 61,657 | 18,380 | (19,879) | 83,619 |
Other comprehensive income (loss) of nonconsolidated subsidiaries | 185 | 4,755 | (3,144) | 13,960 |
Comprehensive income | 124,575 | 92,038 | 50,908 | 219,857 |
Less comprehensive (income) loss attributable to noncontrolling interests | (4,751) | (4,567) | 11,087 | (21,069) |
Comprehensive income attributable to Vornado / Vornado Realty L.P. | $ 119,824 | $ 87,471 | $ 61,995 | $ 198,788 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY - USD ($) $ in Thousands | Total | Preferred Shares | Common Shares | Additional Capital | Earnings Less Than Distributions | Accumulated Other Comprehensive (Loss) Income | Non-controlling Interests in Consolidated Subsidiaries |
Beginning balance, shares at Dec. 31, 2021 | 48,793,000 | ||||||
Beginning balance, value at Dec. 31, 2021 | $ 6,515,238 | $ 1,182,459 | $ 7,648 | $ 8,143,093 | $ (3,079,320) | $ (17,534) | $ 278,892 |
Beginning balance, shares at Dec. 31, 2021 | 191,724,000 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income attributable to Vornado / Vornado Realty L.P. | 107,954 | 107,954 | |||||
Net income attributable to nonredeemable noncontrolling interests in consolidated subsidiaries | 12,269 | 12,269 | |||||
Dividends on common shares | (203,240) | (203,240) | |||||
Dividends on preferred shares / Distributions to preferred unitholders (see Note 11 for dividends per share and distributions per unit amounts) | (31,058) | (31,058) | |||||
Common shares issued: / Class A Units issued to Vornado | |||||||
Common shares issued upon redemption of Class A units, at redemption value, shares | 42,000 | ||||||
Common shares issued upon redemption of Class A units, at redemption value | 1,577 | $ 2 | 1,575 | ||||
Under Vornado's employees' share option plan | 7 | 7 | |||||
Under Vornado's dividend reinvestment plan, shares | 12,000 | ||||||
Under dividend reinvestment plan | 434 | 434 | |||||
Contributions | 4,253 | 4,253 | |||||
Distributions | (41,428) | (41,428) | |||||
Deferred compensation shares/units and options, shares | (2,000) | ||||||
Deferred compensation shares/units and options | 207 | 292 | (85) | ||||
Other comprehensive income (loss) of nonconsolidated subsidiaries | 13,960 | 13,960 | |||||
Change in fair value of consolidated interest rate swaps and other | 83,619 | 83,619 | |||||
Redeemable Class A unit measurement adjustment | 193,762 | 193,762 | |||||
Noncontrolling interests' share of other comprehensive loss (income) | (6,745) | (6,745) | |||||
Other, shares | (1,000) | ||||||
Other | 4 | (2) | (2) | 8 | |||
Ending balance, shares at Jun. 30, 2022 | 48,793,000 | ||||||
Ending balance, value at Jun. 30, 2022 | 6,650,813 | $ 1,182,459 | $ 7,650 | 8,339,161 | (3,205,751) | 73,300 | 253,994 |
Ending balance, shares at Jun. 30, 2022 | 191,775,000 | ||||||
Beginning balance, shares at Mar. 31, 2022 | 48,793,000 | ||||||
Beginning balance, value at Mar. 31, 2022 | 6,437,970 | $ 1,182,459 | $ 7,649 | 8,097,523 | (3,154,549) | 51,776 | 253,112 |
Beginning balance, shares at Mar. 31, 2022 | 191,743,000 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income attributable to Vornado / Vornado Realty L.P. | 65,947 | 65,947 | |||||
Net income attributable to nonredeemable noncontrolling interests in consolidated subsidiaries | 2,590 | 2,590 | |||||
Dividends on common shares | (101,624) | (101,624) | |||||
Dividends on preferred shares / Distributions to preferred unitholders (see Note 11 for dividends per share and distributions per unit amounts) | (15,529) | (15,529) | |||||
Common shares issued: / Class A Units issued to Vornado | |||||||
Common shares issued upon redemption of Class A units, at redemption value, shares | 26,000 | ||||||
Common shares issued upon redemption of Class A units, at redemption value | 860 | $ 1 | 859 | ||||
Under Vornado's dividend reinvestment plan, shares | 7,000 | ||||||
Under dividend reinvestment plan | 222 | 222 | |||||
Contributions | 3,772 | 3,772 | |||||
Distributions | (5,467) | (5,467) | |||||
Deferred compensation shares/units and options | 146 | 146 | |||||
Other comprehensive income (loss) of nonconsolidated subsidiaries | 4,755 | 4,755 | |||||
Change in fair value of consolidated interest rate swaps and other | 18,380 | 18,380 | |||||
Redeemable Class A unit measurement adjustment | 240,413 | 240,413 | |||||
Noncontrolling interests' share of other comprehensive loss (income) | (1,611) | (1,611) | |||||
Other | (11) | $ (1) | (2) | 4 | (13) | ||
Ending balance, shares at Jun. 30, 2022 | 48,793,000 | ||||||
Ending balance, value at Jun. 30, 2022 | $ 6,650,813 | $ 1,182,459 | $ 7,650 | 8,339,161 | (3,205,751) | 73,300 | 253,994 |
Ending balance, shares at Jun. 30, 2022 | 191,775,000 | ||||||
Beginning balance, shares at Dec. 31, 2022 | 48,792,902 | 48,793,000 | |||||
Beginning balance, value at Dec. 31, 2022 | $ 6,076,380 | $ 1,182,459 | $ 7,654 | 8,369,228 | (3,894,580) | 174,967 | 236,652 |
Beginning balance, shares at Dec. 31, 2022 | 191,866,880 | 191,867,000 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income attributable to Vornado / Vornado Realty L.P. | $ 82,603 | 82,603 | |||||
Net income attributable to nonredeemable noncontrolling interests in consolidated subsidiaries | 5,311 | 5,311 | |||||
Dividends on common shares | (71,950) | (71,950) | |||||
Dividends on preferred shares / Distributions to preferred unitholders (see Note 11 for dividends per share and distributions per unit amounts) | (31,058) | (31,058) | |||||
Common shares issued: / Class A Units issued to Vornado | |||||||
Common shares issued upon redemption of Class A units, at redemption value, shares | 394,000 | ||||||
Common shares issued upon redemption of Class A units, at redemption value | 5,558 | $ 16 | 5,542 | ||||
Under Vornado's dividend reinvestment plan, shares | 6,000 | ||||||
Under dividend reinvestment plan | 146 | 146 | |||||
Contributions | 22,328 | 22,328 | |||||
Distributions | (3,811) | (3,811) | |||||
Deferred compensation shares/units and options, shares | (1,000) | ||||||
Deferred compensation shares/units and options | 133 | 169 | (36) | ||||
Repurchase of common shares/Class A units owned by Vornado, shares | (1,722,295) | ||||||
Repurchase of common shares/Class A units owned by Vornado | (23,250) | $ (69) | (23,181) | ||||
Other comprehensive income (loss) of nonconsolidated subsidiaries | (3,144) | (3,144) | |||||
Change in fair value of consolidated interest rate swaps and other | (19,879) | (19,879) | |||||
Unearned 2020 Out-Performance Plan and 2019 Performance AO LTIP awards | 20,668 | 20,668 | |||||
Redeemable Class A unit measurement adjustment | (67,113) | (64,525) | (2,588) | ||||
Noncontrolling interests' share of other comprehensive loss (income) | $ 1,608 | 2,415 | (807) | ||||
Ending balance, shares at Jun. 30, 2023 | 48,792,902 | 48,793,000 | |||||
Ending balance, value at Jun. 30, 2023 | $ 5,994,530 | $ 1,182,459 | $ 7,601 | 8,331,228 | (3,938,202) | 151,771 | 259,673 |
Ending balance, shares at Jun. 30, 2023 | 190,543,866 | 190,544,000 | |||||
Beginning balance, shares at Mar. 31, 2023 | 48,793,000 | ||||||
Beginning balance, value at Mar. 31, 2023 | $ 5,932,658 | $ 1,182,459 | $ 7,654 | 8,367,349 | (3,961,392) | 95,562 | 241,026 |
Beginning balance, shares at Mar. 31, 2023 | 191,881,000 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income attributable to Vornado / Vornado Realty L.P. | 61,906 | 61,906 | |||||
Net income attributable to nonredeemable noncontrolling interests in consolidated subsidiaries | 5,995 | 5,995 | |||||
Dividends on preferred shares / Distributions to preferred unitholders (see Note 11 for dividends per share and distributions per unit amounts) | (15,529) | (15,529) | |||||
Common shares issued: / Class A Units issued to Vornado | |||||||
Common shares issued upon redemption of Class A units, at redemption value, shares | 385,000 | ||||||
Common shares issued upon redemption of Class A units, at redemption value | 5,371 | $ 16 | 5,355 | ||||
Contributions | 16,200 | 16,200 | |||||
Distributions | (3,000) | (3,000) | |||||
Deferred compensation shares/units and options | 79 | 85 | (6) | ||||
Repurchase of common shares/Class A units owned by Vornado, shares | (1,722,295) | ||||||
Repurchase of common shares/Class A units owned by Vornado | (23,250) | $ (69) | (23,181) | ||||
Other comprehensive income (loss) of nonconsolidated subsidiaries | 185 | 185 | |||||
Change in fair value of consolidated interest rate swaps and other | 61,657 | 61,657 | |||||
Redeemable Class A unit measurement adjustment | (43,270) | (41,561) | (1,709) | ||||
Noncontrolling interests' share of other comprehensive loss (income) | $ (4,472) | (3,924) | (548) | ||||
Ending balance, shares at Jun. 30, 2023 | 48,792,902 | 48,793,000 | |||||
Ending balance, value at Jun. 30, 2023 | $ 5,994,530 | $ 1,182,459 | $ 7,601 | $ 8,331,228 | $ (3,938,202) | $ 151,771 | $ 259,673 |
Ending balance, shares at Jun. 30, 2023 | 190,543,866 | 190,544,000 |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (Parentheticals) - $ / shares | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Statement of Stockholders' Equity [Abstract] | |||
Common shares/units, dividends (in dollars per share) | $ 0.53 | $ 0.375 | $ 1.06 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Cash Flows from Operating Activities: | ||
Net income | $ 73,931 | $ 122,278 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization (including amortization of deferred financing costs) | 225,694 | 246,532 |
Distributions of income from partially owned entities | 88,902 | 95,494 |
Equity in net income of partially owned entities | (53,938) | (59,434) |
Stock-based compensation expense | 23,582 | 19,001 |
Net gains on disposition of wholly owned and partially owned assets | (8,456) | (35,384) |
Change in deferred tax liability | 5,600 | 6,457 |
Amortization of below-market leases, net | (2,727) | (2,404) |
Straight-lining of rents | (694) | (36,679) |
Net realized and unrealized income on real estate fund investments | 0 | 1,128 |
Write-off of lease receivables deemed uncollectible | 0 | 501 |
Other non-cash adjustments | 7,079 | 1,929 |
Changes in operating assets and liabilities: | ||
Tenant and other receivables | (6,380) | 2,388 |
Prepaid assets | (18,433) | 94,235 |
Other assets | 10,696 | (13,455) |
Lease liabilities | 8,727 | 7,330 |
Accounts payable and accrued expenses | (2,651) | (15,283) |
Other liabilities | 23,809 | (4,009) |
Net cash provided by operating activities | 374,741 | 430,625 |
Cash Flows from Investing Activities: | ||
Proceeds from maturities of U.S. Treasury bills | 468,598 | 299,668 |
Development costs and construction in progress | (289,792) | (418,748) |
Proceeds from repayment of participation in 150 West 34th Street mortgage loan | 105,000 | 0 |
Additions to real estate | (100,126) | (70,046) |
Investments in partially owned entities | (37,222) | (11,091) |
Acquisitions of real estate and other | (33,145) | (1,000) |
Distributions of capital from partially owned entities | 18,481 | 10,066 |
Proceeds from sale of condominium units at 220 Central Park South | 14,216 | 16,124 |
Proceeds from sales of real estate | 6,363 | 253,958 |
Purchase of U.S. Treasury bills | 0 | (794,793) |
Net cash provided by (used in) investing activities | 152,373 | (715,862) |
Cash Flows from Financing Activities: | ||
Repayments of borrowings | (115,800) | (1,240,573) |
Dividends paid on common shares / Distributions to Vornado | (71,950) | (203,240) |
Dividends paid on preferred shares / Distributions to preferred unitholders | (31,058) | (31,058) |
Repurchase of common shares/ Vornado Class A units owned by Vornado | (23,250) | 0 |
Contributions from noncontrolling interests in consolidated subsidiaries | 18,328 | 4,253 |
Distributions to redeemable security holders and noncontrolling interests in consolidated subsidiaries | (9,440) | (56,589) |
Deferred financing costs | (3,078) | (31,718) |
Proceeds received from exercise of employee share options /Proceeds received from exercise of Vornado stock options and other | 146 | 441 |
Repurchase of shares / Class A units related to stock compensation agreements and related tax withholdings and other | (36) | (85) |
Proceeds from borrowings | 0 | 1,029,773 |
Net cash used in financing activities | (236,138) | (528,796) |
Net increase (decrease) in cash and cash equivalents and restricted cash | 290,976 | (814,033) |
Cash and cash equivalents and restricted cash at beginning of period | 1,021,157 | 1,930,351 |
Cash and cash equivalents and restricted cash at end of period | 1,312,133 | 1,116,318 |
Reconciliation of Cash and Cash Equivalents and Restricted Cash: | ||
Cash and cash equivalents at beginning of period | 889,689 | 1,760,225 |
Restricted cash at beginning of period | 131,468 | 170,126 |
Cash and cash equivalents and restricted cash at beginning of period | 1,021,157 | 1,930,351 |
Cash and cash equivalents at end of period | 1,133,693 | 988,398 |
Restricted cash at end of period | 178,440 | 127,920 |
Cash and cash equivalents and restricted cash at end of period | 1,312,133 | 1,116,318 |
Supplemental Disclosure of Cash Flow Information: | ||
Cash payments for interest (excluding capitalized interest) and interest rate cap premiums | 164,356 | 107,367 |
Cash payments for income taxes | 4,746 | 5,064 |
Non-Cash Information: | ||
Reclassification of assets held for sale (included in "other assets") | 96,106 | 0 |
Accrued capital expenditures included in accounts payable and accrued expenses | 74,852 | 86,639 |
Redeemable Class A unit measurement adjustment | (67,113) | 193,762 |
Accrual of 1290 Avenue of the Americas 1.00% SOFR interest rate cap up-front payment (30% attributable to noncontrolling interests) (paid on July 3, 2023) | 63,100 | 0 |
Write-off of fully depreciated assets | (26,443) | (31,996) |
Change in fair value of consolidated interest rate swaps and other | (19,879) | 83,619 |
Additional estimated lease liability arising from the recognition of right-of-use asset | 0 | 350,000 |
Reclassification of condominium units from "development costs and construction in progress" to "220 Central Park South condominium units ready for sale" | $ 0 | $ 3,024 |
CONSOLIDATED STATEMENTS OF CA_2
CONSOLIDATED STATEMENTS OF CASH FLOWS (Parentheticals) | Jun. 30, 2023 |
Noncontrolling Interest | |
Interest rate cap up-front payment (as percent) | 30% |
SOFR | |
Interest rate cap up-front payment (as percent) | 1% |
CONSOLIDATED BALANCE SHEETS_2
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Real estate, at cost: | ||
Land | $ 2,457,589 | $ 2,451,828 |
Buildings and improvements | 9,839,556 | 9,804,204 |
Development costs and construction in progress | 1,177,290 | 933,334 |
Leasehold improvements and equipment | 127,319 | 125,389 |
Total | 13,601,754 | 13,314,755 |
Less accumulated depreciation and amortization | (3,625,270) | (3,470,991) |
Real estate, net | 9,976,484 | 9,843,764 |
Right-of-use assets | 685,536 | 684,380 |
Cash and cash equivalents | 1,133,693 | 889,689 |
Restricted cash | 178,440 | 131,468 |
Investments in U.S. Treasury bills | 0 | 471,962 |
Tenant and other receivables | 87,551 | 81,170 |
Investments in partially owned entities | 2,641,297 | 2,665,073 |
220 Central Park South condominium units ready for sale | 39,098 | 43,599 |
Receivable arising from the straight-lining of rents | 693,220 | 694,972 |
Deferred leasing costs, net of accumulated amortization of $249,974 and $237,395 | 359,752 | 373,555 |
Identified intangible assets, net of accumulated amortization of $103,094 and $98,139 | 134,683 | 139,638 |
Other assets | 508,085 | 474,105 |
Assets | 16,437,839 | 16,493,375 |
LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND EQUITY | ||
Mortgages payable, net | 5,715,138 | 5,829,018 |
Senior unsecured notes, net | 1,192,853 | 1,191,832 |
Unsecured term loan, net | 793,864 | 793,193 |
Unsecured revolving credit facilities | 575,000 | 575,000 |
Lease liabilities | 744,696 | 735,969 |
Accounts payable and accrued expenses | 504,295 | 450,881 |
Deferred revenue | 35,884 | 39,882 |
Deferred compensation plan | 99,050 | 96,322 |
Other liabilities | 302,233 | 268,166 |
Total liabilities | 9,963,013 | 9,980,263 |
Commitments and contingencies | ||
Redeemable noncontrolling interests: | ||
Total redeemable noncontrolling interests | 480,296 | 436,732 |
Partners' equity: | ||
Earnings less than distributions | (3,938,202) | (3,894,580) |
Accumulated other comprehensive income | 151,771 | 174,967 |
Total shareholders' / partners' equity | 5,734,857 | 5,839,728 |
Noncontrolling interests in consolidated subsidiaries | 259,673 | 236,652 |
Total equity | 5,994,530 | 6,076,380 |
Total liabilities, redeemable noncontrolling interests / partnership units and equity | 16,437,839 | 16,493,375 |
Partnership Interest | ||
Redeemable noncontrolling interests: | ||
Class A units - 17,024,444 and 14,416,891 units outstanding | 406,741 | 345,157 |
Series D cumulative redeemable preferred units - 141,400 units outstanding | 3,535 | 3,535 |
Total redeemable noncontrolling interests | 410,276 | 348,692 |
Subsidiary | ||
Redeemable noncontrolling interests: | ||
Total redeemable noncontrolling interests | 70,020 | 88,040 |
Vornado Realty L.P. | ||
Real estate, at cost: | ||
Land | 2,457,589 | 2,451,828 |
Buildings and improvements | 9,839,556 | 9,804,204 |
Development costs and construction in progress | 1,177,290 | 933,334 |
Leasehold improvements and equipment | 127,319 | 125,389 |
Total | 13,601,754 | 13,314,755 |
Less accumulated depreciation and amortization | (3,625,270) | (3,470,991) |
Real estate, net | 9,976,484 | 9,843,764 |
Right-of-use assets | 685,536 | 684,380 |
Cash and cash equivalents | 1,133,693 | 889,689 |
Restricted cash | 178,440 | 131,468 |
Investments in U.S. Treasury bills | 0 | 471,962 |
Tenant and other receivables | 87,551 | 81,170 |
Investments in partially owned entities | 2,641,297 | 2,665,073 |
220 Central Park South condominium units ready for sale | 39,098 | 43,599 |
Receivable arising from the straight-lining of rents | 693,220 | 694,972 |
Deferred leasing costs, net of accumulated amortization of $249,974 and $237,395 | 359,752 | 373,555 |
Identified intangible assets, net of accumulated amortization of $103,094 and $98,139 | 134,683 | 139,638 |
Other assets | 508,085 | 474,105 |
Assets | 16,437,839 | 16,493,375 |
LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND EQUITY | ||
Mortgages payable, net | 5,715,138 | 5,829,018 |
Senior unsecured notes, net | 1,192,853 | 1,191,832 |
Unsecured term loan, net | 793,864 | 793,193 |
Unsecured revolving credit facilities | 575,000 | 575,000 |
Lease liabilities | 744,696 | 735,969 |
Accounts payable and accrued expenses | 504,295 | 450,881 |
Deferred revenue | 35,884 | 39,882 |
Deferred compensation plan | 99,050 | 96,322 |
Other liabilities | 302,233 | 268,166 |
Total liabilities | 9,963,013 | 9,980,263 |
Commitments and contingencies | ||
Redeemable noncontrolling interests: | ||
Total redeemable noncontrolling interests | 480,296 | 436,732 |
Partners' equity: | ||
Partners' capital | 9,521,288 | 9,559,341 |
Earnings less than distributions | (3,938,202) | (3,894,580) |
Accumulated other comprehensive income | 151,771 | 174,967 |
Total shareholders' / partners' equity | 5,734,857 | 5,839,728 |
Noncontrolling interests in consolidated subsidiaries | 259,673 | 236,652 |
Total equity | 5,994,530 | 6,076,380 |
Total liabilities, redeemable noncontrolling interests / partnership units and equity | 16,437,839 | 16,493,375 |
Vornado Realty L.P. | Partnership Interest | ||
Redeemable noncontrolling interests: | ||
Class A units - 17,024,444 and 14,416,891 units outstanding | 406,741 | 345,157 |
Series D cumulative redeemable preferred units - 141,400 units outstanding | 3,535 | 3,535 |
Total redeemable noncontrolling interests | 410,276 | 348,692 |
Vornado Realty L.P. | Subsidiary | ||
Redeemable noncontrolling interests: | ||
Total redeemable noncontrolling interests | $ 70,020 | $ 88,040 |
CONSOLIDATED BALANCE SHEETS (_2
CONSOLIDATED BALANCE SHEETS (Parentheticals) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
ASSETS | ||
Deferred leasing costs, accumulated amortization | $ 249,974 | $ 237,395 |
Identified intangible assets, accumulated amortization | $ 103,094 | $ 98,139 |
Class A Unit | ||
LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND EQUITY | ||
Outstanding partnership units held by third parties (shares) | 17,024,444 | 14,416,891 |
Cumulative Redeemable Preferred Unit | ||
LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND EQUITY | ||
Outstanding partnership units held by third parties (shares) | 141,400 | 141,400 |
Vornado Realty L.P. | ||
ASSETS | ||
Deferred leasing costs, accumulated amortization | $ 249,974 | $ 237,395 |
Identified intangible assets, accumulated amortization | $ 103,094 | $ 98,139 |
Vornado Realty L.P. | Class A Unit | ||
LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND EQUITY | ||
Outstanding partnership units held by third parties (shares) | 17,024,444 | 14,416,891 |
Vornado Realty L.P. | Cumulative Redeemable Preferred Unit | ||
LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND EQUITY | ||
Outstanding partnership units held by third parties (shares) | 141,400 | 141,400 |
CONSOLIDATED STATEMENTS OF IN_2
CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
REVENUES: | ||||
Total revenues | $ 472,359 | $ 453,494 | $ 918,282 | $ 895,624 |
EXPENSES: | ||||
Operating | (222,723) | (222,309) | (451,496) | (438,838) |
Depreciation and amortization | (107,162) | (118,662) | (213,727) | (236,105) |
General and administrative | (39,410) | (31,902) | (81,005) | (73,118) |
(Expense) benefit from deferred compensation plan liability | (2,182) | 7,594 | (5,910) | 9,538 |
Transaction related costs and other | (30) | (2,960) | (688) | (3,965) |
Total expenses | (371,507) | (368,239) | (752,826) | (742,488) |
Income from partially owned entities | 37,272 | 25,720 | 53,938 | 59,434 |
(Loss) income from real estate fund investments | (102) | (142) | (121) | 5,532 |
Interest and other investment income, net | 13,255 | 3,036 | 22,858 | 4,054 |
Income (loss) from deferred compensation plan assets | 2,182 | (7,594) | 5,910 | (9,538) |
Interest and debt expense | (87,165) | (62,640) | (173,402) | (114,749) |
Net gains on disposition of wholly owned and partially owned assets | 936 | 28,832 | 8,456 | 35,384 |
Income before income taxes | 67,230 | 72,467 | 83,095 | 133,253 |
Income tax expense | (4,497) | (3,564) | (9,164) | (10,975) |
Net income | 62,733 | 68,903 | 73,931 | 122,278 |
Less net loss (income) attributable to noncontrolling interests in consolidated subsidiaries | 2,781 | 826 | 12,709 | (8,548) |
Net income attributable to Vornado / Vornado Realty L.P. | 61,906 | 65,947 | 82,603 | 107,954 |
Preferred share dividends / unit distributions | (15,529) | (15,529) | (31,058) | (31,058) |
NET INCOME attributable to common shareholders / Class A unitholders | 46,377 | 50,418 | 51,545 | 76,896 |
Rental revenues | ||||
REVENUES: | ||||
Total revenues | 418,834 | 405,194 | 815,627 | 802,477 |
Fee and other income | ||||
REVENUES: | ||||
Total revenues | 53,525 | 48,300 | 102,655 | 93,147 |
Vornado Realty L.P. | ||||
REVENUES: | ||||
Total revenues | 472,359 | 453,494 | 918,282 | 895,624 |
EXPENSES: | ||||
Operating | (222,723) | (222,309) | (451,496) | (438,838) |
Depreciation and amortization | (107,162) | (118,662) | (213,727) | (236,105) |
General and administrative | (39,410) | (31,902) | (81,005) | (73,118) |
(Expense) benefit from deferred compensation plan liability | (2,182) | 7,594 | (5,910) | 9,538 |
Transaction related costs and other | (30) | (2,960) | (688) | (3,965) |
Total expenses | (371,507) | (368,239) | (752,826) | (742,488) |
Income from partially owned entities | 37,272 | 25,720 | 53,938 | 59,434 |
(Loss) income from real estate fund investments | (102) | (142) | (121) | 5,532 |
Interest and other investment income, net | 13,255 | 3,036 | 22,858 | 4,054 |
Income (loss) from deferred compensation plan assets | 2,182 | (7,594) | 5,910 | (9,538) |
Interest and debt expense | (87,165) | (62,640) | (173,402) | (114,749) |
Net gains on disposition of wholly owned and partially owned assets | 936 | 28,832 | 8,456 | 35,384 |
Income before income taxes | 67,230 | 72,467 | 83,095 | 133,253 |
Income tax expense | (4,497) | (3,564) | (9,164) | (10,975) |
Net income | 62,733 | 68,903 | 73,931 | 122,278 |
Less net loss (income) attributable to noncontrolling interests in consolidated subsidiaries | 2,781 | 826 | 12,709 | (8,548) |
Net income attributable to Vornado / Vornado Realty L.P. | 65,514 | 69,729 | 86,640 | 113,730 |
Preferred share dividends / unit distributions | (15,557) | (15,557) | (31,115) | (31,115) |
NET INCOME attributable to common shareholders / Class A unitholders | $ 49,957 | $ 54,172 | $ 55,525 | $ 82,615 |
INCOME PER CLASS A UNIT - BASIC: | ||||
Net income per Class A unit (in dollars per unit) | $ 0.24 | $ 0.26 | $ 0.27 | $ 0.40 |
Weighted average units outstanding, basic (in shares) | 205,411 | 205,259 | 205,606 | 205,200 |
INCOME PER CLASS A UNIT - DILUTED: | ||||
Net income per Class A unit (in dollars per unit) | $ 0.24 | $ 0.26 | $ 0.27 | $ 0.39 |
Weighted average units outstanding, diluted (in shares) | 208,747 | 205,930 | 208,302 | 205,922 |
Vornado Realty L.P. | Rental revenues | ||||
REVENUES: | ||||
Total revenues | $ 418,834 | $ 405,194 | $ 815,627 | $ 802,477 |
Vornado Realty L.P. | Fee and other income | ||||
REVENUES: | ||||
Total revenues | $ 53,525 | $ 48,300 | $ 102,655 | $ 93,147 |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Net income | $ 62,733 | $ 68,903 | $ 73,931 | $ 122,278 |
Other comprehensive income (loss): | ||||
Change in fair value of consolidated interest rate swaps and other | 61,657 | 18,380 | (19,879) | 83,619 |
Other comprehensive income (loss) of nonconsolidated subsidiaries | 185 | 4,755 | (3,144) | 13,960 |
Comprehensive income | 124,575 | 92,038 | 50,908 | 219,857 |
Less comprehensive loss (income) attributable to noncontrolling interests in consolidated subsidiaries | (4,751) | (4,567) | 11,087 | (21,069) |
Comprehensive income attributable to Vornado / Vornado Realty L.P. | 119,824 | 87,471 | 61,995 | 198,788 |
Vornado Realty L.P. | ||||
Net income | 62,733 | 68,903 | 73,931 | 122,278 |
Other comprehensive income (loss): | ||||
Change in fair value of consolidated interest rate swaps and other | 61,657 | 18,380 | (19,879) | 83,619 |
Other comprehensive income (loss) of nonconsolidated subsidiaries | 185 | 4,755 | (3,144) | 13,960 |
Comprehensive income | 124,575 | 92,038 | 50,908 | 219,857 |
Less comprehensive loss (income) attributable to noncontrolling interests in consolidated subsidiaries | 3,329 | 826 | 13,516 | (8,548) |
Comprehensive income attributable to Vornado / Vornado Realty L.P. | $ 127,904 | $ 92,864 | $ 64,424 | $ 211,309 |
CONSOLIDATED STATEMENTS OF CH_3
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY - USD ($) $ in Thousands | Total | Preferred Units | Earnings Less Than Distributions | Accumulated Other Comprehensive (Loss) Income | Non-controlling Interests in Consolidated Subsidiaries | Vornado Realty L.P. | Vornado Realty L.P. Preferred Units | Vornado Realty L.P. Class A Units Owned by Vornado | Vornado Realty L.P. Earnings Less Than Distributions | Vornado Realty L.P. Accumulated Other Comprehensive (Loss) Income | Vornado Realty L.P. Non-controlling Interests in Consolidated Subsidiaries |
Beginning balance, shares at Dec. 31, 2021 | 48,793,000 | 48,793,000 | |||||||||
Beginning balance, value at Dec. 31, 2021 | $ 6,515,238 | $ 1,182,459 | $ (3,079,320) | $ (17,534) | $ 278,892 | $ 6,515,238 | $ 1,182,459 | $ 8,150,741 | $ (3,079,320) | $ (17,534) | $ 278,892 |
Beginning balance, shares at Dec. 31, 2021 | 191,724,000 | ||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Net income attributable to Vornado / Vornado Realty L.P. | 107,954 | 107,954 | 113,730 | 113,730 | |||||||
Net income attributable to redeemable partnership units | (5,776) | (5,776) | (5,776) | ||||||||
Net income attributable to nonredeemable noncontrolling interests in consolidated subsidiaries | 12,269 | 12,269 | 12,269 | 12,269 | |||||||
Distributions to Vornado | (203,240) | (203,240) | |||||||||
Dividends on preferred shares / Distributions to preferred unitholders (see Note 11 for dividends per share and distributions per unit amounts) | (31,058) | (31,058) | (31,058) | (31,058) | |||||||
Common shares issued: / Class A Units issued to Vornado | |||||||||||
Class A units redeemed for common shares, shares | 42,000 | ||||||||||
Class A units redeemed for common shares | 1,577 | 1,577 | $ 1,577 | ||||||||
Under Vornado's employees' share option plan, shares | 0 | ||||||||||
Under Vornado's employees' share option plan | 7 | 7 | $ 7 | ||||||||
Under Vornado's dividend reinvestment plan, shares | 12,000 | ||||||||||
Under Vornado's dividend reinvestment plan | 434 | 434 | $ 434 | ||||||||
Contributions | 4,253 | 4,253 | 4,253 | 4,253 | |||||||
Distributions | (41,428) | (41,428) | (41,428) | (41,428) | |||||||
Deferred compensation shares/units and options, shares | (2,000) | ||||||||||
Deferred compensation shares/units and options | 207 | (85) | 207 | $ 292 | (85) | ||||||
Other comprehensive income (loss) of nonconsolidated subsidiaries | 13,960 | 13,960 | 13,960 | 13,960 | |||||||
Change in fair value of consolidated interest rate swaps and other | 83,619 | 83,619 | 83,619 | 83,619 | |||||||
Redeemable Class A unit measurement adjustment | 193,762 | 193,762 | $ 193,762 | ||||||||
Noncontrolling interests' share of other comprehensive loss (income) | (6,745) | (6,745) | (6,745) | (6,745) | |||||||
Other, shares | (1,000) | ||||||||||
Other | 4 | (2) | 8 | 4 | $ (2) | (2) | 8 | ||||
Ending balance, shares at Jun. 30, 2022 | 48,793,000 | 48,793,000 | |||||||||
Ending balance, value at Jun. 30, 2022 | 6,650,813 | $ 1,182,459 | (3,205,751) | 73,300 | 253,994 | 6,650,813 | $ 1,182,459 | $ 8,346,811 | (3,205,751) | 73,300 | 253,994 |
Ending balance, shares at Jun. 30, 2022 | 191,775,000 | ||||||||||
Beginning balance, shares at Mar. 31, 2022 | 48,793,000 | 48,793,000 | |||||||||
Beginning balance, value at Mar. 31, 2022 | 6,437,970 | $ 1,182,459 | (3,154,549) | 51,776 | 253,112 | 6,437,970 | $ 1,182,459 | $ 8,105,172 | (3,154,549) | 51,776 | 253,112 |
Beginning balance, shares at Mar. 31, 2022 | 191,743,000 | ||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Net income attributable to Vornado / Vornado Realty L.P. | 65,947 | 65,947 | 69,729 | 69,729 | |||||||
Net income attributable to redeemable partnership units | (3,782) | (3,782) | (3,782) | ||||||||
Net income attributable to nonredeemable noncontrolling interests in consolidated subsidiaries | 2,590 | 2,590 | 2,590 | 2,590 | |||||||
Distributions to Vornado | (101,624) | (101,624) | |||||||||
Dividends on preferred shares / Distributions to preferred unitholders (see Note 11 for dividends per share and distributions per unit amounts) | (15,529) | (15,529) | (15,529) | (15,529) | |||||||
Common shares issued: / Class A Units issued to Vornado | |||||||||||
Class A units redeemed for common shares, shares | 26,000 | ||||||||||
Class A units redeemed for common shares | 860 | 860 | $ 860 | ||||||||
Under Vornado's dividend reinvestment plan, shares | 7,000 | ||||||||||
Under Vornado's dividend reinvestment plan | 222 | 222 | $ 222 | ||||||||
Contributions | 3,772 | 3,772 | 3,772 | 3,772 | |||||||
Distributions | (5,467) | (5,467) | (5,467) | (5,467) | |||||||
Deferred compensation shares/units and options | 146 | 146 | 146 | ||||||||
Other comprehensive income (loss) of nonconsolidated subsidiaries | 4,755 | 4,755 | 4,755 | 4,755 | |||||||
Change in fair value of consolidated interest rate swaps and other | 18,380 | 18,380 | 18,380 | 18,380 | |||||||
Redeemable Class A unit measurement adjustment | 240,413 | 240,413 | $ 240,413 | ||||||||
Noncontrolling interests' share of other comprehensive loss (income) | (1,611) | (1,611) | (1,611) | (1,611) | |||||||
Other, shares | (1,000) | ||||||||||
Other | (11) | 4 | (13) | (11) | $ (2) | 4 | (13) | ||||
Ending balance, shares at Jun. 30, 2022 | 48,793,000 | 48,793,000 | |||||||||
Ending balance, value at Jun. 30, 2022 | $ 6,650,813 | $ 1,182,459 | (3,205,751) | 73,300 | 253,994 | 6,650,813 | $ 1,182,459 | $ 8,346,811 | (3,205,751) | 73,300 | 253,994 |
Ending balance, shares at Jun. 30, 2022 | 191,775,000 | ||||||||||
Beginning balance, shares at Dec. 31, 2022 | 48,792,902 | 48,793,000 | 48,793,000 | ||||||||
Beginning balance, value at Dec. 31, 2022 | $ 6,076,380 | $ 1,182,459 | (3,894,580) | 174,967 | 236,652 | 6,076,380 | $ 1,182,459 | $ 8,376,882 | (3,894,580) | 174,967 | 236,652 |
Beginning balance, shares at Dec. 31, 2022 | 191,866,880 | 191,867,000 | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Net income attributable to Vornado / Vornado Realty L.P. | $ 82,603 | 82,603 | 86,640 | 86,640 | |||||||
Net income attributable to redeemable partnership units | (4,037) | (4,037) | (4,037) | ||||||||
Net income attributable to nonredeemable noncontrolling interests in consolidated subsidiaries | 5,311 | 5,311 | 5,311 | 5,311 | |||||||
Distributions to Vornado | (71,950) | (71,950) | |||||||||
Dividends on preferred shares / Distributions to preferred unitholders (see Note 11 for dividends per share and distributions per unit amounts) | (31,058) | (31,058) | (31,058) | (31,058) | |||||||
Common shares issued: / Class A Units issued to Vornado | |||||||||||
Class A units redeemed for common shares, shares | 394,000 | ||||||||||
Class A units redeemed for common shares | 5,558 | 5,558 | $ 5,558 | ||||||||
Under Vornado's dividend reinvestment plan, shares | 6,000 | ||||||||||
Under Vornado's dividend reinvestment plan | 146 | 146 | $ 146 | ||||||||
Contributions | 22,328 | 22,328 | 22,328 | 22,328 | |||||||
Distributions | (3,811) | (3,811) | (3,811) | (3,811) | |||||||
Deferred compensation shares/units and options, shares | (1,000) | ||||||||||
Deferred compensation shares/units and options | 133 | (36) | 133 | $ 169 | (36) | ||||||
Repurchase of common shares/Class A units owned by Vornado, shares | (1,722,000) | ||||||||||
Repurchase of common shares/Class A units owned by Vornado | (23,250) | (23,181) | (23,250) | $ (69) | (23,181) | ||||||
Other comprehensive income (loss) of nonconsolidated subsidiaries | (3,144) | (3,144) | (3,144) | (3,144) | |||||||
Change in fair value of consolidated interest rate swaps and other | (19,879) | (19,879) | (19,879) | (19,879) | |||||||
Unearned 2020 Out-Performance Plan and 2019 Performance AO LTIP awards | 20,668 | 20,668 | 20,668 | ||||||||
Redeemable Class A unit measurement adjustment | (67,113) | (2,588) | (67,113) | (64,525) | (2,588) | ||||||
Noncontrolling interests' share of other comprehensive loss (income) | $ 1,608 | 2,415 | (807) | 1,608 | 2,415 | (807) | |||||
Ending balance, shares at Jun. 30, 2023 | 48,792,902 | 48,793,000 | 48,793,000 | ||||||||
Ending balance, value at Jun. 30, 2023 | $ 5,994,530 | $ 1,182,459 | (3,938,202) | 151,771 | 259,673 | 5,994,530 | $ 1,182,459 | $ 8,338,829 | (3,938,202) | 151,771 | 259,673 |
Ending balance, shares at Jun. 30, 2023 | 190,543,866 | 190,544,000 | |||||||||
Beginning balance, shares at Mar. 31, 2023 | 48,793,000 | 48,793,000 | |||||||||
Beginning balance, value at Mar. 31, 2023 | $ 5,932,658 | $ 1,182,459 | (3,961,392) | 95,562 | 241,026 | 5,932,658 | $ 1,182,459 | $ 8,375,003 | (3,961,392) | 95,562 | 241,026 |
Beginning balance, shares at Mar. 31, 2023 | 191,881,000 | ||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Net income attributable to Vornado / Vornado Realty L.P. | 61,906 | 61,906 | 65,514 | 65,514 | |||||||
Net income attributable to redeemable partnership units | (3,608) | (3,608) | (3,608) | ||||||||
Net income attributable to nonredeemable noncontrolling interests in consolidated subsidiaries | 5,995 | 5,995 | 5,995 | 5,995 | |||||||
Dividends on preferred shares / Distributions to preferred unitholders (see Note 11 for dividends per share and distributions per unit amounts) | (15,529) | (15,529) | (15,529) | (15,529) | |||||||
Common shares issued: / Class A Units issued to Vornado | |||||||||||
Class A units redeemed for common shares, shares | 385,000 | ||||||||||
Class A units redeemed for common shares | 5,371 | 5,371 | $ 5,371 | ||||||||
Contributions | 16,200 | 16,200 | 16,200 | 16,200 | |||||||
Distributions | (3,000) | (3,000) | (3,000) | (3,000) | |||||||
Deferred compensation shares/units and options | 79 | (6) | 79 | $ 85 | (6) | ||||||
Repurchase of common shares/Class A units owned by Vornado, shares | (1,722,000) | ||||||||||
Repurchase of common shares/Class A units owned by Vornado | (23,250) | (23,181) | (23,250) | $ (69) | (23,181) | ||||||
Other comprehensive income (loss) of nonconsolidated subsidiaries | 185 | 185 | 185 | 185 | |||||||
Change in fair value of consolidated interest rate swaps and other | 61,657 | 61,657 | 61,657 | 61,657 | |||||||
Redeemable Class A unit measurement adjustment | (43,270) | (1,709) | (43,270) | (41,561) | (1,709) | ||||||
Noncontrolling interests' share of other comprehensive loss (income) | $ (4,472) | (3,924) | (548) | (4,472) | (3,924) | (548) | |||||
Ending balance, shares at Jun. 30, 2023 | 48,792,902 | 48,793,000 | 48,793,000 | ||||||||
Ending balance, value at Jun. 30, 2023 | $ 5,994,530 | $ 1,182,459 | $ (3,938,202) | $ 151,771 | $ 259,673 | $ 5,994,530 | $ 1,182,459 | $ 8,338,829 | $ (3,938,202) | $ 151,771 | $ 259,673 |
Ending balance, shares at Jun. 30, 2023 | 190,543,866 | 190,544,000 |
CONSOLIDATED STATEMENTS OF CH_4
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (Parentheticals) - $ / shares | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Common shares/units, dividends (in dollars per share) | $ 0.53 | $ 0.375 | $ 1.06 |
Vornado Realty L.P. | |||
Common shares/units, dividends (in dollars per share) | $ 0.53 | $ 0.375 | $ 1.06 |
CONSOLIDATED STATEMENTS OF CA_3
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Cash Flows from Operating Activities: | ||
Net income | $ 73,931 | $ 122,278 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization (including amortization of deferred financing costs) | 225,694 | 246,532 |
Distributions of income from partially owned entities | 88,902 | 95,494 |
Equity in net income of partially owned entities | (53,938) | (59,434) |
Stock-based compensation expense | 23,582 | 19,001 |
Net gains on disposition of wholly owned and partially owned assets | (8,456) | (35,384) |
Change in deferred tax liability | 5,600 | 6,457 |
Amortization of below-market leases, net | (2,727) | (2,404) |
Straight-lining of rents | (694) | (36,679) |
Net realized and unrealized income on real estate fund investments | 0 | 1,128 |
Write-off of lease receivables deemed uncollectible | 0 | 501 |
Other non-cash adjustments | 7,079 | 1,929 |
Changes in operating assets and liabilities: | ||
Tenant and other receivables | (6,380) | 2,388 |
Prepaid assets | (18,433) | 94,235 |
Other assets | 10,696 | (13,455) |
Lease liabilities | 8,727 | 7,330 |
Accounts payable and accrued expenses | (2,651) | (15,283) |
Other liabilities | 23,809 | (4,009) |
Net cash provided by operating activities | 374,741 | 430,625 |
Cash Flows from Investing Activities: | ||
Proceeds from maturities of U.S. Treasury bills | 468,598 | 299,668 |
Development costs and construction in progress | (289,792) | (418,748) |
Proceeds from repayment of participation in 150 West 34th Street mortgage loan | 105,000 | 0 |
Additions to real estate | (100,126) | (70,046) |
Investments in partially owned entities | (37,222) | (11,091) |
Acquisitions of real estate and other | (33,145) | (1,000) |
Distributions of capital from partially owned entities | 18,481 | 10,066 |
Proceeds from sale of condominium units at 220 Central Park South | 14,216 | 16,124 |
Proceeds from sales of real estate | 6,363 | 253,958 |
Purchase of U.S. Treasury bills | 0 | (794,793) |
Net cash provided by (used in) investing activities | 152,373 | (715,862) |
Cash Flows from Financing Activities: | ||
Repayments of borrowings | (115,800) | (1,240,573) |
Distributions to Vornado | (71,950) | (203,240) |
Distributions to preferred unitholders | (31,058) | (31,058) |
Repurchase of common shares/ Vornado Class A units owned by Vornado | (23,250) | 0 |
Contributions from noncontrolling interests in consolidated subsidiaries | 18,328 | 4,253 |
Distributions to redeemable security holders and noncontrolling interests in consolidated subsidiaries | (9,440) | (56,589) |
Deferred financing costs | (3,078) | (31,718) |
Proceeds received from exercise of Vornado stock options and other | 146 | 441 |
Repurchase of Class A units related to stock compensation agreements and related tax withholdings and other | (36) | (85) |
Proceeds from borrowings | 0 | 1,029,773 |
Net cash used in financing activities | (236,138) | (528,796) |
Net increase (decrease) in cash and cash equivalents and restricted cash | 290,976 | (814,033) |
Cash and cash equivalents and restricted cash at beginning of period | 1,021,157 | 1,930,351 |
Cash and cash equivalents and restricted cash at end of period | 1,312,133 | 1,116,318 |
Reconciliation of Cash and Cash Equivalents and Restricted Cash: | ||
Cash and cash equivalents at beginning of period | 889,689 | 1,760,225 |
Restricted cash at beginning of period | 131,468 | 170,126 |
Cash and cash equivalents and restricted cash at beginning of period | 1,021,157 | 1,930,351 |
Cash and cash equivalents at end of period | 1,133,693 | 988,398 |
Restricted cash at end of period | 178,440 | 127,920 |
Cash and cash equivalents and restricted cash at end of period | 1,312,133 | 1,116,318 |
Supplemental Disclosure of Cash Flow Information: | ||
Cash payments for interest (excluding capitalized interest) and interest rate cap premiums | 164,356 | 107,367 |
Cash payments for income taxes | 4,746 | 5,064 |
Non-Cash Information: | ||
Reclassification of assets held for sale (included in "other assets") | 96,106 | 0 |
Accrued capital expenditures included in accounts payable and accrued expenses | 74,852 | 86,639 |
Redeemable Class A unit measurement adjustment | (67,113) | 193,762 |
Accrual of 1290 Avenue of the Americas 1.00% SOFR interest rate cap up-front payment (30% attributable to noncontrolling interests) (paid on July 3, 2023) | 63,100 | 0 |
Write-off of fully depreciated assets | (26,443) | (31,996) |
Change in fair value of consolidated interest rate swaps and other | (19,879) | 83,619 |
Additional estimated lease liability arising from the recognition of right-of-use asset | 0 | 350,000 |
Reclassification of condominium units from "development costs and construction in progress" to "220 Central Park South condominium units ready for sale" | 0 | 3,024 |
Vornado Realty L.P. | ||
Cash Flows from Operating Activities: | ||
Net income | 73,931 | 122,278 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization (including amortization of deferred financing costs) | 225,694 | 246,532 |
Distributions of income from partially owned entities | 88,902 | 95,494 |
Equity in net income of partially owned entities | (53,938) | (59,434) |
Stock-based compensation expense | 23,582 | 19,001 |
Net gains on disposition of wholly owned and partially owned assets | (8,456) | (35,384) |
Change in deferred tax liability | 5,600 | 6,457 |
Amortization of below-market leases, net | (2,727) | (2,404) |
Straight-lining of rents | (694) | (36,679) |
Net realized and unrealized income on real estate fund investments | 0 | 1,128 |
Write-off of lease receivables deemed uncollectible | 0 | 501 |
Other non-cash adjustments | 7,079 | 1,929 |
Changes in operating assets and liabilities: | ||
Tenant and other receivables | (6,380) | 2,388 |
Other assets | 10,696 | (13,455) |
Lease liabilities | 8,727 | 7,330 |
Other liabilities | 23,809 | (4,009) |
Net cash provided by operating activities | 374,741 | 430,625 |
Cash Flows from Investing Activities: | ||
Proceeds from maturities of U.S. Treasury bills | 468,598 | 299,668 |
Development costs and construction in progress | (289,792) | (418,748) |
Proceeds from repayment of participation in 150 West 34th Street mortgage loan | 105,000 | 0 |
Additions to real estate | (100,126) | (70,046) |
Investments in partially owned entities | (37,222) | (11,091) |
Acquisitions of real estate and other | (33,145) | (1,000) |
Distributions of capital from partially owned entities | 18,481 | 10,066 |
Proceeds from sale of condominium units at 220 Central Park South | 14,216 | 16,124 |
Proceeds from sales of real estate | 6,363 | 253,958 |
Purchase of U.S. Treasury bills | 0 | (794,793) |
Net cash provided by (used in) investing activities | 152,373 | (715,862) |
Cash Flows from Financing Activities: | ||
Repayments of borrowings | (115,800) | (1,240,573) |
Distributions to Vornado | (71,950) | (203,240) |
Distributions to preferred unitholders | (31,058) | (31,058) |
Repurchase of common shares/ Vornado Class A units owned by Vornado | (23,250) | 0 |
Contributions from noncontrolling interests in consolidated subsidiaries | 18,328 | 4,253 |
Distributions to redeemable security holders and noncontrolling interests in consolidated subsidiaries | (9,440) | (56,589) |
Deferred financing costs | (3,078) | (31,718) |
Proceeds received from exercise of Vornado stock options and other | 146 | 441 |
Repurchase of Class A units related to stock compensation agreements and related tax withholdings and other | (36) | (85) |
Proceeds from borrowings | 0 | 1,029,773 |
Net cash used in financing activities | (236,138) | (528,796) |
Net increase (decrease) in cash and cash equivalents and restricted cash | 290,976 | (814,033) |
Cash and cash equivalents and restricted cash at beginning of period | 1,021,157 | 1,930,351 |
Cash and cash equivalents and restricted cash at end of period | 1,312,133 | 1,116,318 |
Reconciliation of Cash and Cash Equivalents and Restricted Cash: | ||
Cash and cash equivalents at beginning of period | 889,689 | 1,760,225 |
Restricted cash at beginning of period | 131,468 | 170,126 |
Cash and cash equivalents and restricted cash at beginning of period | 1,021,157 | 1,930,351 |
Cash and cash equivalents at end of period | 1,133,693 | 988,398 |
Restricted cash at end of period | 178,440 | 127,920 |
Cash and cash equivalents and restricted cash at end of period | 1,312,133 | 1,116,318 |
Supplemental Disclosure of Cash Flow Information: | ||
Cash payments for interest (excluding capitalized interest) and interest rate cap premiums | 164,356 | 107,367 |
Cash payments for income taxes | 4,746 | 5,064 |
Non-Cash Information: | ||
Reclassification of assets held for sale (included in "other assets") | 96,106 | 0 |
Accrued capital expenditures included in accounts payable and accrued expenses | 74,852 | 86,639 |
Redeemable Class A unit measurement adjustment | (67,113) | 193,762 |
Accrual of 1290 Avenue of the Americas 1.00% SOFR interest rate cap up-front payment (30% attributable to noncontrolling interests) (paid on July 3, 2023) | 63,100 | 0 |
Write-off of fully depreciated assets | (26,443) | (31,996) |
Change in fair value of consolidated interest rate swaps and other | (19,879) | 83,619 |
Additional estimated lease liability arising from the recognition of right-of-use asset | 0 | 350,000 |
Reclassification of condominium units from "development costs and construction in progress" to "220 Central Park South condominium units ready for sale" | $ 0 | $ 3,024 |
CONSOLIDATED STATEMENTS OF CA_4
CONSOLIDATED STATEMENTS OF CASH FLOWS (Parentheticals) | Jun. 30, 2023 |
Noncontrolling Interest | |
Interest rate cap up-front payment (as percent) | 30% |
SOFR | |
Interest rate cap up-front payment (as percent) | 1% |
Vornado Realty L.P. | Noncontrolling Interest | |
Interest rate cap up-front payment (as percent) | 30% |
Vornado Realty L.P. | SOFR | |
Interest rate cap up-front payment (as percent) | 1% |
Organization
Organization | 6 Months Ended |
Jun. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization | Organization Vornado Realty Trust (“Vornado”) is a fully-integrated real estate investment trust (“REIT”) and conducts its business through, and substantially all of its interests in properties are held by, Vornado Realty L.P. (the “Operating Partnership”), a Delaware limited partnership. Vornado is the sole general partner of and owned approximately 90.6% of the common limited partnership interest in the Operating Partnership as of June 30, 2023. All references to the “Company,” “we,” “us” and “our” mean, collectively, Vornado, the Operating Partnership and those subsidiaries consolidated by Vornado. |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Jun. 30, 2023 | |
Basis of Presentation [Abstract] | |
Basis Of Presentation | Basis of Presentation The accompanying consolidated financial statements are unaudited and include the accounts of Vornado and the Operating Partnership and their consolidated subsidiaries. All adjustments (which include only normal recurring adjustments) necessary to present fairly the financial position, results of operations and changes in cash flows have been made. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) have been condensed or omitted. These condensed consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q of the Securities and Exchange Commission (“SEC”) and should be read in conjunction with the consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2022, as filed with the SEC. We have made estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates. The results of operations for the three and six months ended June 30, 2023 are not necessarily indicative of the operating results for the full year. In addition, certain prior year balances have been reclassified in order to conform to the current period presentation. |
Recently Issued Accounting Lite
Recently Issued Accounting Literature | 6 Months Ended |
Jun. 30, 2023 | |
Accounting Standards Update and Change in Accounting Principle [Abstract] | |
Recently Issued Accounting Literature | Recently Issued Accounting Literature In March 2020, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2020-04 establishing Accounting Standards Codification ("ASC") Topic 848, Reference Rate Reform , and in January 2021, the FASB issued ASU 2021-01, Reference Rate Reform (Topic 848): Scope (collectively, "ASC 848"). ASC 848 contains practical expedients for reference rate reform related activities that impact debt, leases, derivatives and other contracts. The guidance in ASC 848 is optional and may be elected over time as reference rate reform activities occur. We have elected to apply the hedge accounting expedients related to probability and the assessments of effectiveness for future LIBOR-indexed cash flows to assume that the index upon which future hedged transactions will be based matches the index on the corresponding derivatives. Application of these expedients preserves the presentation of derivatives consistent with past presentation. In December 2022, the FASB issued ASU 2022-06, Deferral of the Sunset Date of Topic 848 (“ASU 2022-06”) which was issued to defer the sunset date of ASC 848 to December 31, 2024. ASU 2022-06 is effective immediately for all companies. For our derivatives in hedge accounting relationships, we have utilized the elective relief in ASC 848, allowing for the continuation of hedge accounting though the transition process. |
Revenue Recognition
Revenue Recognition | 6 Months Ended |
Jun. 30, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | Revenue Recognition Below is a summary of our revenues by segment. Additional financial information related to these reportable segments for the three and six months ended June 30, 2023 and 2022 is set forth in Note 19 - Segment Information. (Amounts in thousands) For the Three Months Ended June 30, 2023 For the Three Months Ended June 30, 2022 Total New York Other Total New York Other Property rentals $ 397,053 $ 305,182 $ 91,871 (1) $ 383,049 $ 309,882 $ 73,167 Trade shows 6,782 — 6,782 5,842 — 5,842 Lease revenues (2) 403,835 305,182 98,653 388,891 309,882 79,009 Tenant services 9,804 7,325 2,479 11,461 8,133 3,328 Parking revenues 5,195 4,195 1,000 4,842 4,025 817 Rental revenues 418,834 316,702 102,132 405,194 322,040 83,154 BMS cleaning fees 35,146 37,754 (2,608) (3) 33,999 36,206 (2,207) (3) Management and leasing fees 3,658 3,761 (103) 2,866 3,011 (145) Other income 14,721 4,254 10,467 11,435 2,905 8,530 Fee and other income 53,525 45,769 7,756 48,300 42,122 6,178 Total revenues $ 472,359 $ 362,471 $ 109,888 $ 453,494 $ 364,162 $ 89,332 ____________________ See notes below. (Amounts in thousands) For the Six Months Ended June 30, 2023 For the Six Months Ended June 30, 2022 Total New York Other Total New York Other Property rentals $ 773,882 $ 612,904 $ 160,978 (1) $ 760,936 $ 617,605 $ 143,331 Trade shows 11,830 — 11,830 10,986 — 10,986 Lease revenues (2) 785,712 612,904 172,808 771,922 617,605 154,317 Tenant services 19,573 14,907 4,666 21,350 15,544 5,806 Parking revenues 10,342 8,407 1,935 9,205 7,736 1,469 Rental revenues 815,627 636,218 179,409 802,477 640,885 161,592 BMS cleaning fees 70,474 75,432 (4,958) (3) 66,690 70,917 (4,227) (3) Management and leasing fees 6,707 6,934 (227) 5,635 5,978 (343) Other income 25,474 7,701 17,773 20,822 4,930 15,892 Fee and other income 102,655 90,067 12,588 93,147 81,825 11,322 Total revenues $ 918,282 $ 726,285 $ 191,997 $ 895,624 $ 722,710 $ 172,914 ____________________ (1) The three and six months ended June 30, 2023 include the receipt of a $21,350 tenant settlement, of which $6,405 is attributable to noncontrolling interests. (2) The components of lease revenues were as follows: For the Three Months Ended June 30, For the Six Months Ended June 30, 2023 2022 2023 2022 Fixed billings $ 362,326 $ 342,891 $ 710,240 $ 672,142 Variable billings 37,216 31,225 75,155 64,199 Total contractual operating lease billings 399,542 374,116 785,395 736,341 Adjustment for straight-line rents and amortization of acquired below-market leases and other, net 4,293 15,276 317 36,082 Less: write-off of straight-line rent and tenant receivables deemed uncollectible — (501) — (501) Lease revenues $ 403,835 $ 388,891 $ 785,712 $ 771,922 (3) Represents the elimination of Building Maintenance Services LLC ("BMS") cleaning fees related to THE MART and 555 California Street which are included as income in the New York segment. |
Real Estate Fund Investments
Real Estate Fund Investments | 6 Months Ended |
Jun. 30, 2023 | |
Real Estate Fund Investments [Abstract] | |
Real Estate Fund Investments | Real Estate Fund Investments We are the general partner and investment manager of Vornado Capital Partners Real Estate Fund (the “Fund”) and own a 25.0% interest in the Fund. The Fund had an initial eight-year term ending February 2019, which has been extended to December 2023, by which time the Fund intends to dispose of its remaining investment and wind down its business. The Fund's three-year investment period ended in July 2013. The Fund is accounted for under ASC Topic 946, Financial Services – Investment Companies (“ASC 946”) and its investments are reported on its balance sheet at fair value, with changes in value each period recognized in earnings. We consolidate the accounts of the Fund into our consolidated financial statements, retaining the fair value basis of accounting. We are the general partner and investment manager of the Crowne Plaza Times Square Hotel Joint Venture (the “Crowne Plaza Joint Venture”) and own a 57.1% interest in the joint venture which, prior to the transaction described below, owned the 24.3% interest in the Crowne Plaza Times Square Hotel not owned by the Fund. Through our interests in the Fund and the Crowne Plaza Joint Venture, in total we owned an indirect, minority 32.8% interest in the Crowne Plaza Times Square Hotel. The Crowne Plaza Joint Venture is also accounted for under ASC 946 and we consolidate the accounts of the joint venture into our consolidated financial statements retaining the fair value basis of accounting. In June 2020, the Fund and the Crowne Plaza Joint Venture (collectively, the "Crowne Plaza Co-Investors") defaulted on the $274,355,000 non-recourse loan on the Crowne Plaza Times Square Hotel. In 2021, the mezzanine lender to the Crowne Plaza Co-Investors exercised its right under the loan documents and appointed an independent director to certain subsidiaries of the Crowne Plaza Co-Investors. Since then, neither we nor the Fund controlled Crowne Plaza Times Square Hotel nor have we or the Fund been involved in making any operating decisions relating to Crowne Plaza Times Square Hotel. In December 2022, the Fund entered into a Restructuring Support Agreement with certain of its subsidiaries and the lender of the loan on the Crowne Plaza Times Square Hotel, pursuant to which the independent director caused the subsidiaries to enter into a Chapter 11 bankruptcy restructuring process and the Fund agreed to work consensually with such subsidiaries and the lender to effectuate a transfer of ownership of the hotel property through a court supervised auction process, or an equitization of the secured loans held by the lender. On March 21, 2023, the bankruptcy court confirmed the subsidiaries' Chapter 11 plan of reorganization, which became effective on March 31, 2023. Following the Chapter 11 reorganization, neither we nor the Fund have any continuing ownership or other interest in the hotel property. As we have no carrying value or contingent liabilities related to Crowne Plaza, there is no impact to our consolidated financial statements for the three and six months ended June 30, 2023. As of June 30, 2023, we had one real estate fund investment carried at zero on our consolidated balance sheet, $28,815,000 below cost, and had remaining unfunded commitments of $28,465,000, of which our share was $8,849,000. Below is a summary of (loss) income from the Fund and the Crowne Plaza Joint Venture. (Amounts in thousands) For the Three Months Ended June 30, For the Six Months Ended June 30, 2023 2022 2023 2022 Net investment (loss) income $ (102) $ 6,658 $ (121) $ 6,660 Previously recorded unrealized loss on exited investments — 53,724 247,575 59,396 Realized loss on exited investments — (53,724) (247,575) (53,724) Net unrealized loss on held investments — (6,800) — (6,800) (Loss) income from real estate fund investments (102) (142) (121) 5,532 Less loss (income) attributable to noncontrolling interests in consolidated subsidiaries 143 365 382 (3,599) Income from real estate fund investments net of noncontrolling interests in consolidated subsidiaries $ 41 $ 223 $ 261 $ 1,933 The table below summarizes the changes in the fair value of the Fund and the Crowne Plaza Joint Venture. (Amounts in thousands) For the Three Months Ended June 30, For the Six Months Ended June 30, 2023 2022 2023 2022 Beginning balance $ — $ 13,402 $ — $ 7,730 Previously recorded unrealized loss on exited investments — 53,724 247,575 59,396 Realized loss on exited investments — (53,724) (247,575) (53,724) Net unrealized loss on held investments — (6,800) — (6,800) Dispositions — (5,672) — (5,672) Ending balance $ — $ 930 $ — $ 930 |
Investments in Partially Owned
Investments in Partially Owned Entities | 6 Months Ended |
Jun. 30, 2023 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Investments in Partially Owned Entities | Investments in Partially Owned Entities Fifth Avenue and Times Square JV As of June 30, 2023, we own a 51.5% common interest in a joint venture ("Fifth Avenue and Times Square JV") which owns interests in properties located at 640 Fifth Avenue, 655 Fifth Avenue, 666 Fifth Avenue, 689 Fifth Avenue, 697-703 Fifth Avenue, 1535 Broadway and 1540 Broadway (collectively, the "Properties"). The remaining 48.5% common interest in the joint venture is owned by a group of institutional investors (the "Investors"). Our 51.5% common interest in the joint venture represents an effective 51.0% interest in the Properties. The 48.5% common interest in the joint venture owned by the Investors represents an effective 47.2% interest in the Properties. We provide various services to Fifth Avenue and Times Square JV in accordance with management, development, leasing and other agreements. We also own $1.828 billion aggregate liquidation preference of preferred equity interests in certain of the Properties. The preferred equity has an annual coupon of 4.25% through April 2024, increasing to 4.75% for the subsequent five years and thereafter at a formulaic rate. It can be redeemed under certain conditions on a tax deferred basis. Fifth Avenue and Times Square JV operates pursuant to a limited partnership agreement (the “Partnership Agreement”) among VRLP, a wholly owned subsidiary of VRLP (“Vornado GP”) and the Investors. Vornado GP is the general partner of Fifth Avenue and Times Square JV. VRLP is jointly and severally liable with Vornado GP for Vornado GP’s obligations under the Partnership Agreement. Pursuant to the Partnership Agreement and the organizational documents of the entities owning the Properties, the Investors or directors of the entities owning the Properties appointed by the Investors, as the case may be, have the right to approve annual business plans and budgets for the Properties and certain other specified major decisions with respect to the Properties and Fifth Avenue and Times Square JV. The Partnership Agreement affords the Investors the right to remove and replace Vornado GP in the event Vornado GP or certain of its affiliates commit fraud or other bad acts in connection with Fifth Avenue and Times Square JV, become bankrupt or insolvent, or default on certain of their respective obligations under the Partnership Agreement (subject to notice and cure periods in certain circumstances). The Partnership Agreement includes (i) remedies for the failure of any partner to make a required capital contribution for necessary expenses and (ii) liquidity provisions, including transfer rights subject to mutual rights of first offer and a mutual buy-sell, customary for similar partnerships. Subject to certain limitations, commencing April 19, 2024, either party may transfer more than 50% or control of their respective interests in Fifth Avenue and Times Square JV or exercise the buy-sell on a Property-by-Property basis. In the event the buy-sell is exercised with respect to any Property in which VRLP holds preferred equity and VRLP is the selling partner in the buy-sell, VRLP may elect whether or not to include its preferred equity in the buy-sell for the Property to be sold. As of June 30, 2023, the carrying amount of our investment in the joint venture was less than our share of the equity in the net assets of the joint venture by approximately $853,777,000, the basis difference primarily resulting from non-cash impairment losses recognized in prior periods. Substantially all of this basis difference was allocated, based on our estimates of the fair values of Fifth Avenue and Times Square JV’s assets and liabilities, to real estate (land and buildings). We are amortizing the basis difference related to the buildings into earnings as a reduction to depreciation expense over their estimated useful lives. On June 14, 2023, the Fifth Avenue and Times Square JV completed a restructuring of the 697-703 Fifth Avenue $421,000,000 non-recourse mortgage loan, which matured in December 2022. The restructured $355,000,000 loan, which had its principal reduced through an application of property-level reserves and funds from the partners, was split into (i) a $325,000,000 senior note, which bears interest at SOFR plus 2.00%, and (ii) a $30,000,000 junior note, which accrues interest at a fixed rate of 4.00%. The restructured loan matures in June 2025, with two one-year and one nine-month as-of-right extension options (March 2028, as fully extended). Any amounts funded for future re-leasing of the property will be senior to the $30,000,000 junior note. 6. Investments in Partially Owned Entities - continued Alexander's, Inc. ("Alexander's") (NYSE: ALX) As of June 30, 2023, we own 1,654,068 Alexander’s common shares, or approximately 32.4% of Alexander’s common equity. We manage, develop and lease Alexander’s properties pursuant to agreements which expire in March of each year and are automatically renewable. On May 19, 2023, Alexander's completed the sale of the Rego Park III land parcel, located in Queens, New York, for $71,060,000, inclusive of consideration for Brownfield tax benefits and reimbursement of costs for plans, specifications and improvements to date. As a result of the sale, we recognized our $16,396,000 share of the net gain and received a $711,000 sales commission from Alexander’s, of which $250,000 was paid to a third-party broker. As of June 30, 2023, the market value ("fair value" pursuant to ASC Topic 820, Fair Value Measurements ("ASC 820")) of our investment in Alexander’s, based on Alexander’s June 30, 2023 closing share price of $183.86, was $304,117,000, or $207,829,000 in excess of the carrying amount on our consolidated balance sheets. As of June 30, 2023, the carrying amount of our investment in Alexander’s, excluding amounts owed to us, exceeded our share of the equity in the net assets of Alexander’s by approximately $29,658,000. The majority of this basis difference resulted from the excess of our purchase price for the Alexander’s common stock acquired over the book value of Alexander’s net assets. Substantially all of this basis difference was allocated, based on our estimates of the fair values of Alexander’s assets and liabilities, to real estate (land and buildings). We are amortizing the basis difference related to the buildings into earnings as additional depreciation expense over their estimated useful lives. This depreciation is not material to our share of equity in Alexander’s net income. 512 West 22nd Street On June 28, 2023, a joint venture, in which we have a 55% interest, completed a $129,250,000 refinancing of 512 West 22nd Street, a 173,000 square foot Manhattan office building. The interest-only loan bears a rate of SOFR plus 2.00% in year one and SOFR plus 2.35% thereafter. The loan matures in June 2025 with a one-year extension option subject to debt service coverage ratio, loan-to-value and debt yield requirements. The loan replaces the previous $137,124,000 loan that bore interest at LIBOR plus 1.85% and had an initial maturity of June 2023. The joint venture entered into a two-year 4.50% interest rate cap arrangement. Below is a schedule summarizing our investments in partially owned entities. (Amounts in thousands) Percentage Ownership as of June 30, 2023 Balance as of June 30, 2023 December 31, 2022 Investments: Fifth Avenue and Times Square JV (see page 27 51.5% $ 2,256,952 $ 2,272,320 Partially owned office buildings/land (1) Various 173,950 182,180 Alexander's (see above for details) 32.4% 96,288 87,796 Other investments (2) Various 114,107 122,777 $ 2,641,297 $ 2,665,073 Investments in partially owned entities included in other liabilities (3) : 7 West 34th Street 53.0% $ (67,729) $ (65,522) 85 Tenth Avenue 49.9% (11,200) (16,006) $ (78,929) $ (81,528) ____________________ (1) Includes interests in 280 Park Avenue, 650 Madison Avenue, 512 West 22nd Street, 61 Ninth Avenue and others. (2) Includes interests in Independence Plaza, Rosslyn Plaza and others. (3) Our negative basis results from distributions in excess of our investment. 6. Investments in Partially Owned Entities - continued Below is a schedule of income from partially owned entities. (Amounts in thousands) Percentage Ownership at June 30, 2023 For the Three Months Ended June 30, For the Six Months Ended 2023 2022 2023 2022 Our share of net income (loss): Fifth Avenue and Times Square JV (see page 27 Equity in net income (1) 51.5% $ 5,941 $ 13,665 $ 16,140 $ 29,974 Return on preferred equity, net of our share of the expense 9,329 9,329 18,555 18,555 15,270 22,994 34,695 48,529 Alexander's (see page 28 Net gain on sale of land 32.4% 16,396 — 16,396 — Equity in net income 3,318 4,824 6,889 9,495 Management, leasing and development fees 1,699 1,162 2,872 2,182 21,413 5,986 26,157 11,677 Partially owned office buildings (2) Various (254) (4,980) (9,217) (3,688) Other investments (3) Various 843 1,720 2,303 2,916 $ 37,272 $ 25,720 $ 53,938 $ 59,434 ____________________ (1) The three and six months ended June 30, 2023 include (i) a $5,120 accrual of default interest which was forgiven by the lender as part of the restructuring of the 697-703 Fifth Avenue loan and will be amortized over the remaining term of the restructured loan, reducing future interest expense, and (ii) reductions in income at 697-703 Fifth Avenue and 666 Fifth Avenue upon lease renewals. (2) Includes interests in 280 Park Avenue, 650 Madison Avenue, 7 West 34th Street, 512 West 22nd Street, 61 Ninth Avenue, 85 Tenth Avenue and others. (3) Includes interests in Independence Plaza, Rosslyn Plaza and others. |
350 Park Avenue
350 Park Avenue | 6 Months Ended |
Jun. 30, 2023 | |
Real Estate [Abstract] | |
350 Park Avenue | 350 Park Avenue On January 24, 2023, we and the Rudin family (“Rudin”) completed agreements with Citadel Enterprise Americas LLC (“Citadel”) and with an affiliate of Kenneth C. Griffin, Citadel’s Founder and CEO (“KG”), for a series of transactions relating to 350 Park Avenue and 40 East 52nd Street. Pursuant to the agreements, Citadel master leases 350 Park Avenue, a 585,000 square foot Manhattan office building, on an “as is” basis for ten years, with an initial annual net rent of $36,000,000. Per the terms of the lease, no tenant allowance or free rent was provided. In the first quarter of 2023, we commenced revenue recognition of the master lease. Citadel has also master leased Rudin’s adjacent property at 40 East 52nd Street (390,000 square feet). In addition, we entered into a joint venture with Rudin (the “Vornado/Rudin JV”) which was formed to purchase 39 East 51st Street. Upon formation of the KG joint venture described below, 39 East 51st Street will be combined with 350 Park Avenue and 40 East 52nd Street to create a premier development site (collectively, the “Site”). On June 20, 2023, the Vornado/Rudin JV completed the purchase of 39 East 51st Street for $40,000,000, which was funded on a 50/50 basis by Vornado and Rudin. The Vornado/Rudin JV is a variable interest entity which we consolidate as the entity’s primary beneficiary. From October 2024 to June 2030, KG will have the option to either: • acquire a 60% interest in a joint venture with the Vornado/Rudin JV that would value the Site at $1.2 billion ($900,000,000 to Vornado and $300,000,000 to Rudin) and build a new 1,700,000 square foot office tower (the “Project”) pursuant to East Midtown Subdistrict zoning with the Vornado/Rudin JV as developer. KG would own 60% of the joint venture and the Vornado/Rudin JV would own 40% (with Vornado owning 36% and Rudin owning 4% of the joint venture along with a $250,000,000 preferred equity interest in the Vornado/Rudin JV). ◦ at the joint venture formation, Citadel or its affiliates will execute a pre-negotiated 15-year anchor lease with renewal options for approximately 850,000 square feet (with expansion and contraction rights) at the Project for its primary office in New York City; ◦ the rent for Citadel’s space will be determined by a formula based on a percentage return (that adjusts based on the actual cost of capital) on the total Project cost; ◦ the master leases will terminate at the scheduled commencement of demolition; • or, exercise an option to purchase the Site for $1.4 billion ($1.085 billion to Vornado and $315,000,000 to Rudin), in which case the Vornado/Rudin JV would not participate in the new development. Further, the Vornado/Rudin JV will have the option from October 2024 to September 2030 to put the Site to KG for $1.2 billion ($900,000,000 to Vornado and $300,000,000 to Rudin). For ten years following any put option closing, unless the put option is exercised in response to KG’s request to form the joint venture or KG makes a $200,000,000 termination payment, the Vornado/Rudin JV will have the right to invest in a joint venture with KG on the terms described above if KG proceeds with development of the Site. |
Identified Intangible Assets an
Identified Intangible Assets and Liabilities | 6 Months Ended |
Jun. 30, 2023 | |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | |
Identified Intangible Assets and Liabilities | Identified Intangible Assets and Liabilities The following summarizes our identified intangible assets (primarily above-market leases) and liabilities (primarily below-market leases). (Amounts in thousands) Balance as of June 30, 2023 December 31, 2022 Identified intangible assets: Gross amount $ 237,777 $ 237,777 Accumulated amortization (103,094) (98,139) Total, net $ 134,683 $ 139,638 Identified intangible liabilities (included in deferred revenue): Gross amount $ 244,396 $ 244,396 Accumulated amortization (212,300) (208,592) Total, net $ 32,096 $ 35,804 Amortization of acquired below-market leases, net of acquired above-market leases, resulted in an increase to rental revenues of $1,360,000 and $1,487,000 for the three months ended June 30, 2023 and 2022, respectively, and $2,727,000 and $2,404,000 for the six months ended June 30, 2023 and 2022. Estimated annual amortization for each of the five succeeding years commencing January 1, 2024 is below: (Amounts in thousands) 2024 $ 2,352 2025 941 2026 299 2027 (148) 2028 (43) Amortization of all other identified intangible assets (a component of depreciation and amortization expense) was $1,985,000 and $2,417,000 for the three months ended June 30, 2023 and 2022, respectively, and $3,972,000 and $6,542,000 for the six months ended June 30, 2023 and 2022. Estimated annual amortization for each of the five succeeding years commencing January 1, 2024 is below: (Amounts in thousands) 2024 $ 7,128 2025 6,078 2026 5,884 2027 5,449 2028 4,290 |
Debt
Debt | 6 Months Ended |
Jun. 30, 2023 | |
Debt Disclosure [Abstract] | |
Debt | Debt Secured Debt 150 West 34th Street Loan Participation On January 9, 2023, our $105,000,000 participation in the $205,000,000 mortgage loan on 150 West 34th Street was repaid, which reduced “other assets” and “mortgages payable, net” on our consolidated balance sheets by $105,000,000. The remaining $100,000,000 mortgage loan balance bears interest at SOFR plus 1.86%, subject to an interest rate cap arrangement with a SOFR strike rate of 4.10%, and matures in May 2024. 1290 Avenue of the Americas On June 29, 2023, we entered into a forward two-year 1.00% SOFR interest rate cap arrangement for the $950,000,000 SOFR plus 1.62% mortgage loan on 1290 Avenue of the Americas, in which we own a 70% controlling interest. We made a $63,100,000 up-front payment, which is included in “other assets” on our consolidated balance sheets as of June 30, 2023. The forward cap is effective upon the November 2023 expiration of our existing cap arrangement, which has a 3.89% SOFR strike rate, and expires in November 2025. The following is a summary of our debt: (Amounts in thousands) Weighted Average Interest Rate as of June 30, 2023 (1) Balance as of June 30, 2023 December 31, 2022 Mortgages Payable: Fixed rate 3.63% $ 3,569,100 $ 3,570,000 Variable rate (2) 5.83% 2,192,715 2,307,615 Total 4.47% 5,761,815 5,877,615 Deferred financing costs, net and other (46,677) (48,597) Total, net $ 5,715,138 $ 5,829,018 Unsecured Debt: Senior unsecured notes 3.02% $ 1,200,000 $ 1,200,000 Deferred financing costs, net and other (7,147) (8,168) Senior unsecured notes, net 1,192,853 1,191,832 Unsecured term loan 4.04% 800,000 800,000 Deferred financing costs, net and other (6,136) (6,807) Unsecured term loan, net 793,864 793,193 Unsecured revolving credit facilities 3.87% 575,000 575,000 Total, net $ 2,561,717 $ 2,560,025 ____________________ (1) Represents the interest rate in effect as of June 30, 2023 based on the appropriate reference rate as of the contractual reset date plus contractual spread, adjusted for hedging instruments, as applicable. See Note 14 - Fair Value Measurements for further information on our consolidated hedging instruments. (2) As of June 30, 2023, $2,009,119 of our variable rate debt is subject to interest rate cap arrangements. The interest rate cap arrangements have a weighted average strike rate of 4.18% and a weighted average remaining term of 10 months. These amounts exclude the 1290 Avenue of the Americas interest rate cap discussed above, which is effective November 2023. |
Redeemable Noncontrolling Inter
Redeemable Noncontrolling Interests | 6 Months Ended |
Jun. 30, 2023 | |
Noncontrolling Interest [Abstract] | |
Redeemable Noncontrolling Interests | Redeemable Noncontrolling Interests Redeemable Noncontrolling Partnership Units Redeemable noncontrolling partnership units are primarily comprised of Class A Operating Partnership units held by third parties and are recorded at the greater of their carrying amount or redemption value at the end of each reporting period. Changes in the value from period to period are charged to “additional capital” in Vornado’s consolidated statements of changes in equity and to “partners’ capital” on the consolidated balance sheets of the Operating Partnership. Below is a table summarizing the activity of redeemable noncontrolling partnership units. (Amounts in thousands) For the Three Months Ended June 30, For the Six Months Ended June 30, 2023 2022 2023 2022 Beginning balance $ 351,743 $ 649,758 $ 348,692 $ 590,975 Net income 3,608 3,782 4,037 5,776 Other comprehensive income (loss) 4,472 1,611 (1,608) 6,745 Distributions (28) (7,577) (5,629) (15,161) Redemption of Class A units for Vornado common shares, at redemption value (5,371) (860) (5,558) (1,577) Redeemable Class A unit measurement adjustment 43,270 (240,413) 67,113 (193,762) Other, net 12,582 5,721 3,229 19,026 Ending balance $ 410,276 $ 412,022 $ 410,276 $ 412,022 As of June 30, 2023 and December 31, 2022, the aggregate redemption value of redeemable Class A units of the Operating Partnership, which are those units held by third parties, was $308,823,000 and $300,015,000, respectively, based on Vornado’s quarter-end closing common share price. On April 26, 2023, Vornado announced the postponement of dividends on its common shares until the end of 2023, at which time, upon finalization of its 2023 taxable income, including the impact of asset sales, it will pay the 2023 dividend in either (i) cash, or (ii) a combination of cash and securities, as determined by its Board of Trustees. Distributions to Class A unitholders of the Operating Partnership will correspondingly be postponed with the postponement of dividends to Vornado common shareholders. Redeemable noncontrolling partnership units exclude our Series G-1 through G-4 convertible preferred units and Series D-13 cumulative redeemable preferred units, as they are accounted for as liabilities in accordance with ASC Topic 480, Distinguishing Liabilities and Equity . Accordingly, the fair value of these units is included as a component of “other liabilities” on our consolidated balance sheets and aggregated $49,383,000 as of June 30, 2023 and December 31, 2022, respectively. Changes in the value from period to period, if any, are charged to “interest and debt expense” on our consolidated statements of income. Redeemable Noncontrolling Interest in a Consolidated Subsidiary A consolidated joint venture, in which we hold a 95% interest, developed and owns the Farley Building (the "Farley Project"). During 2020, a historic tax credit investor (the "Tax Credit Investor") funded $92,400,000 of capital contributions to the Farley Project and is expected to make additional capital contributions in future periods. The arrangement includes a put option whereby the joint venture may be obligated to purchase the Tax Credit Investor’s ownership interest in the Farley Project at a future date. The put price is calculated based on a pre-determined formula. As exercise of the put option is outside of the joint venture’s control, the Tax Credit Investor’s interest, together with the put option, have been recorded to “redeemable noncontrolling interest in a consolidated subsidiary” on our consolidated balance sheets. The redeemable noncontrolling interest is recorded at the greater of the carrying amount or redemption value at the end of each reporting period. Changes in the value from period to period are charged to “additional capital” in Vornado’s consolidated statements of changes in equity and to “partners’ capital” on the consolidated balance sheets of the Operating Partnership. There was no adjustment required for the three and six months ended June 30, 2023 and 2022. Below is a table summarizing the activity of the redeemable noncontrolling interest in a consolidated subsidiary. (Amounts in thousands) For the Three Months Ended June 30, For the Six Months Ended June 30, 2023 2022 2023 2022 Beginning balance $ 78,796 $ 97,403 $ 88,040 $ 97,708 Net loss (8,776) (3,416) (18,020) (3,721) Ending balance $ 70,020 $ 93,987 $ 70,020 $ 93,987 |
Shareholders' Equity_Partners'
Shareholders' Equity/Partners' Capital | 6 Months Ended |
Jun. 30, 2023 | |
Equity [Abstract] | |
Shareholders' Equity/Partners' Capital | Shareholders' Equity/Partners' Capital The following table sets forth the details of our dividends/distributions per common share/Class A unit and dividends/distributions per share/unit for each class of preferred shares/units of beneficial interest. (Per share/unit) For the Three Months Ended June 30, For the Six Months Ended June 30, 2023 2022 2023 2022 Common shares/Class A units held by Vornado: authorized 250,000,000 shares/units $ — $ 0.53 $ 0.375 $ 1.06 Preferred shares/units (1) Convertible Preferred: 6.5% Series A: authorized 12,902 shares/units (2) 0.8125 0.8125 1.6250 1.6250 Cumulative Redeemable Preferred (1)(3) : 5.40% Series L: authorized 13,800,000 shares/units 0.3375 0.3375 0.6750 0.6750 5.25% Series M: authorized 13,800,000 shares/units 0.3281 0.3281 0.6562 0.6562 5.25% Series N: authorized 12,000,000 shares/units 0.3281 0.3281 0.6562 0.6562 4.45% Series O: authorized 12,000,000 shares/units 0.2781 0.2781 0.5562 0.5562 ____________________ (1) Dividends on preferred shares and distributions on preferred units are cumulative and are payable quarterly in arrears. (2) Redeemable at the option of Vornado under certain circumstances, at a redemption price of 1.9531 common shares/Class A units per Series A preferred share/unit plus accrued and unpaid dividends/distributions through the date of redemption, or convertible at any time at the option of the holder for 1.9531 common shares/Class A units per Series A preferred share/unit. (3) Series L and Series M preferred shares/units are redeemable at Vornado's option at a redemption price of $25.00 per share/unit, plus accrued and unpaid dividends/distributions through the date of redemption. Series N preferred shares/units are redeemable commencing November 2025 and Series O preferred shares/units are redeemable commencing September 2026, each at a redemption price of $25.00 per share/unit. On April 26, 2023, Vornado announced the postponement of dividends on its common shares until the end of 2023, at which time, upon finalization of its 2023 taxable income, including the impact of asset sales, it will pay the 2023 dividend in either (i) cash, or (ii) a combination of cash and securities, as determined by its Board of Trustees. Cash retained from dividends or from asset sales will be used to reduce debt and/or to fund the share repurchase program discussed below. Distributions to Class A unitholders of the Operating Partnership will correspondingly be postponed with the postponement of dividends to Vornado common shareholders. Share Repurchase Program On April 26, 2023, our Board of Trustees authorized a share repurchase plan under which Vornado is authorized to repurchase up to $200,000,000 of its outstanding common shares. To the extent Vornado repurchases any of its common shares, in order to fund the common share repurchase and maintain the one-to-one ratio of the number of Vornado common shares outstanding and the number of Class A units owned by Vornado, the Operating Partnership will repurchase from Vornado an equal number of its Class A units at the same price. Share repurchases may be made from time to time in the open market, through privately negotiated transactions or through other means as permitted by federal securities laws, including through block trades, accelerated share repurchase transactions and/or trading plans intended to qualify under Rule 10b5-1. The timing, manner, price and amount of any repurchases will be determined in Vornado’s discretion depending on business, economic and market conditions, corporate and regulatory requirements, prevailing prices for Vornado’s common shares, alternative uses for capital and other considerations. The program does not have an expiration date and may be suspended or discontinued at any time and does not obligate Vornado to make any repurchases of its common shares. During the three and six months ended June 30, 2023, we repurchased 1,722,295 common shares for $23,216,000 at an average price per share of $13.48. The Operating Partnership repurchased Class A units from Vornado equivalent to the number and price of common shares repurchased by Vornado during the same periods. |
Variable Interest Entities ("VI
Variable Interest Entities ("VIEs") | 6 Months Ended |
Jun. 30, 2023 | |
Variable Interest Entities [Abstract] | |
Variable Interest Entities ("VIEs") | Variable Interest Entities ("VIEs") Unconsolidated VIEs As of June 30, 2023 and December 31, 2022, we had several unconsolidated VIEs. We do not consolidate these entities because we are not the primary beneficiary and the nature of our involvement in the activities of these entities does not give us power over decisions that significantly affect these entities’ economic performance. We account for our investment in these entities under the equity method (see Note 6 – Investments in Partially Owned Entities ). As of June 30, 2023 and December 31, 2022, the net carrying amount of our investments in these entities was $60,813,000 and $68,223,000, respectively, and our maximum exposure to loss in these entities is limited to the carrying amount of our investments. Consolidated VIEs Our most significant consolidated VIEs are the Operating Partnership (for Vornado), the Farley Project and certain properties that have noncontrolling interests. These entities are VIEs because the noncontrolling interests do not have substantive kick-out or participating rights. We consolidate these entities because we control all significant business activities. As of June 30, 2023, the total assets and liabilities of our consolidated VIEs, excluding the Operating Partnership, were $5,097,432,000 and $2,809,851,000, respectively. As of December 31, 2022, the total assets and liabilities of our consolidated VIEs, excluding the Operating Partnership, were $4,423,995,000 and $2,345,726,000, respectively. |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements ASC 820 defines fair value and establishes a framework for measuring fair value. The objective of fair value is to determine the price that would be received upon the sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (the exit price). ASC 820 establishes a fair value hierarchy that prioritizes observable and unobservable inputs used to measure fair value into three levels: Level 1 – quoted prices (unadjusted) in active markets that are accessible at the measurement date for assets or liabilities as well as certain U.S. Treasury securities that are highly liquid and are actively traded in secondary markets; Level 2 – observable prices that are based on inputs not quoted in active markets, but corroborated by market data; and Level 3 – unobservable inputs that are used when little or no market data is available. The fair value hierarchy gives the highest priority to Level 1 inputs and the lowest priority to Level 3 inputs. In determining fair value, we utilize valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible, as well as consider counterparty credit risk in our assessment of fair value. Considerable judgment is necessary to interpret Level 2 and 3 inputs in determining the fair value of our financial and non-financial assets and liabilities. Accordingly, our fair value estimates, which are made at the end of each reporting period, may be different than the amounts that may ultimately be realized upon sale or disposition of these assets. 14. Fair Value Measurements - continued Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis Financial assets and liabilities that are measured at fair value on our consolidated balance sheets consist of (i) investments in U.S. Treasury bills (classified as available for-sale) (ii) the assets in our deferred compensation plan (for which there is a corresponding liability on our consolidated balance sheets), (iii) loans receivable (for which we have elected the fair value option under ASC Subtopic 825-10, Financial Instruments ("ASC 825-10")), (iv) interest rate swaps and caps and (v) mandatorily redeemable instruments (Series G-1 through G-4 convertible preferred units and Series D-13 cumulative redeemable preferred units). The tables below aggregate the fair values of these financial assets and liabilities by their levels in the fair value hierarchy. (Amounts in thousands) As of June 30, 2023 Total Level 1 Level 2 Level 3 Deferred compensation plan assets ($30,384 included in restricted cash and $68,666 in other assets) $ 99,050 $ 60,397 $ — $ 38,653 Loans receivable ($52,094 included in investments in partially owned entities and $4,455 in other assets) 56,549 — — 56,549 Interest rate swaps and caps (included in other assets) 242,379 — 242,379 — Total assets $ 397,978 $ 60,397 $ 242,379 $ 95,202 Mandatorily redeemable instruments (included in other liabilities) $ 49,383 $ 49,383 $ — $ — Interest rate swaps (included in other liabilities) 1,280 — 1,280 — Total liabilities $ 50,663 $ 49,383 $ 1,280 $ — (Amounts in thousands) As of December 31, 2022 Total Level 1 Level 2 Level 3 Investments in U.S. Treasury bills (1) $ 471,962 $ 471,962 $ — $ — Deferred compensation plan assets ($7,763 included in restricted cash and $88,559 in other assets) 96,322 57,406 — 38,916 Loans receivable ($50,091 included in investments in partially owned entities and $4,306 in other assets) 54,397 — — 54,397 Interest rate swaps and caps (included in other assets) 183,804 — 183,804 — Total assets $ 806,485 $ 529,368 $ 183,804 $ 93,313 Mandatorily redeemable instruments (included in other liabilities) $ 49,383 $ 49,383 $ — $ — ____________________ (1) During the six months ended June 30, 2023, we realized proceeds of $477,000 from maturing U.S. Treasury bills. Deferred Compensation Plan Assets Deferred compensation plan assets that are classified as Level 3 consist of investments in limited partnerships and investment funds, which are managed by third parties. We receive quarterly financial reports that provide net asset values on a fair value basis from a third-party administrator, which are compiled from the quarterly reports provided to them from each limited partnership and investment fund. The period of time over which these underlying assets are expected to be liquidated is unknown. The third-party administrator does not adjust these values in determining our share of the net assets and we do not adjust these values when reported in our consolidated financial statements. The table below summarizes the changes in the fair value of deferred compensation plan assets that are classified as Level 3. (Amounts in thousands) For the Three Months Ended June 30, For the Six Months Ended June 30, 2023 2022 2023 2022 Beginning balance $ 40,627 $ 44,526 $ 38,916 $ 45,016 Purchases 202 2,104 845 2,947 Sales (2,372) (1,880) (2,878) (2,787) Realized and unrealized (losses) gains (758) (858) 355 (2,098) Other, net 954 263 1,415 1,077 Ending balance $ 38,653 $ 44,155 $ 38,653 $ 44,155 14. Fair Value Measurements - continued Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis - continued Loans Receivable Loans receivable consist of loan investments in real estate related assets for which we have elected the fair value option under ASC 825-10. These investments are classified as Level 3. Significant unobservable quantitative inputs used in determining the fair value of each investment include capitalization rates and discount rates. These rates are based on the location, type and nature of each property, current and anticipated market conditions, industry publications and from the experience of our Acquisitions and Capital Markets departments. Significant unobservable quantitative inputs in the table below were utilized in determining the fair value of these loans receivable. Unobservable Quantitative Input As of June 30, 2023 As of December 31, 2022 Discount rates 7.5% 7.5% Terminal capitalization rates 5.5% 5.5% The table below summarizes the changes in fair value of loans receivable that are classified as Level 3. (Amounts in thousands) For the Three Months Ended June 30, For the Six Months Ended June 30, 2023 2022 2023 2022 Beginning balance $ 55,269 $ 50,848 $ 54,397 $ 50,182 Interest accrual 1,280 1,198 2,563 2,397 Paydowns — — (411) (533) Ending balance $ 56,549 $ 52,046 $ 56,549 $ 52,046 14. Fair Value Measurements - continued Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis - continued Derivatives and Hedging We recognize the fair values of all derivatives in "other assets" or "other liabilities" on our consolidated balance sheets. Derivatives that are not hedges are adjusted to fair value through earnings. If a derivative is a hedge, depending on the nature of the hedge, changes in the fair value of the derivative will either be offset against the change in fair value of the hedged asset, liability, or firm commitment through earnings, or recognized in other comprehensive income until the hedged item is recognized in earnings. Reported net income and equity may increase or decrease prospectively, depending on future levels of interest rates and other variables affecting the fair values of hedging instruments and hedged items, but will have no effect on cash flows. The following table summarizes our consolidated hedging instruments, all of which hedge variable rate debt, as of June 30, 2023 and December 31, 2022. (Amounts in thousands) As of June 30, 2023 As of December 31, 2022 Notional Amount All-In Swapped Rate Swap/Cap Expiration Date Fair Value Asset Fair Value Liability Fair Value Asset Interest rate swaps: 555 California Street mortgage loan: In-place swap $ 840,000 (1) 2.29% 05/24 $ 36,414 $ — $ 49,888 Forward swap (effective 05/24) 840,000 (1) 6.03% 05/26 — 1,280 — 770 Broadway mortgage loan 700,000 4.98% 07/27 33,320 — 29,226 PENN 11 mortgage loan 500,000 2.22% 03/24 17,471 — 26,587 Unsecured revolving credit facility 575,000 3.87% 08/27 27,738 — 24,457 Unsecured term loan (2) 800,000 4.04% (2) 24,001 — 21,024 100 West 33rd Street mortgage loan 480,000 5.06% 06/27 11,203 — 6,886 888 Seventh Avenue mortgage loan 200,000 (3) 4.76% 09/27 7,880 — 6,544 4 Union Square South mortgage loan 99,100 (4) 3.74% 01/25 3,916 — 4,050 Interest rate caps: 1290 Avenue of the Americas mortgage loan 950,000 (5) 11/25 66,456 — 7,590 One Park Avenue mortgage loan 525,000 (6) 03/25 10,870 — 5,472 Various mortgage loans 3,110 — 2,080 $ 242,379 $ 1,280 $ 183,804 ____________________ (1) Represents our 70.0% share of the $1.2 billion mortgage loan. In March 2023, we entered into the forward swap arrangement detailed above. (2) Represents the aggregate fair value of various interest rate swap arrangements to hedge interest payments on our unsecured term loan. In February 2023, we entered into a forward interest rate swap arrangement for $150,000 of the $800,000 unsecured term loan . The unsecured term loan, which matures in December 2027, is subject to various interest rate swap arrangements through August 2027, which are detailed below: Swapped Balance All-In Swapped Rate Unswapped Balance Through 10/23 $ 800,000 4.04% $ — 10/23 through 07/25 700,000 4.52% 100,000 07/25 through 10/26 550,000 4.35% 250,000 10/26 through 08/27 50,000 4.03% 750,000 (3) The remaining $67,000 amortizing mortgage loan balance bears interest at a floating rate of SOFR plus 1.80% (6.96% as of June 30, 2023). (4) The remaining $20,900 mortgage loan balance bears interest at a floating rate of SOFR plus 1.50% (6.66% as of June 30, 2023). (5) Current SOFR cap strike rate of 3.89%. In June 2023, we entered into a forward cap arrangement which is effective upon the November 2023 expiration of the current in-place cap and expires in November 2025. The forward cap has a SOFR strike rate of 1.00%. In connection with the arrangement, we made a $63,100 up-front payment, of which $18,930 is attributable to noncontrolling interests. See Note 9 - Debt for further information. (6) Current SOFR cap strike rate of 3.89%. In March 2023, we entered into a forward cap arrangement which is effective upon the March 2024 expiration of the current in-place cap and expires in March 2025. The forward cap has a SOFR strike rate of 3.89%. 14. Fair Value Measurements - continued Fair Value Measurements on a Nonrecurring Basis There were no assets measured at fair value on a nonrecurring basis on our consolidated balance sheets as of June 30, 2023. As of December 31, 2022, we had assets measured at fair value on a nonrecurring basis on our consolidated balance sheets with an aggregate fair value of $2,352,328,000, representing real estate investments, including our investment in Fifth Avenue and Times Square JV as well as wholly owned street retail assets, that were written down to estimated fair value for impairment purposes and were classified as Level 3 investments. Our estimate of the fair value of these assets was measured using discounted cash flow analyses based upon market conditions and expectations of growth and utilized unobservable quantitative inputs including capitalization rates and discount rates. Significant unobservable quantitative inputs in the table below were utilized in determining the fair value of these real estate assets. As of December 31, 2022 Unobservable Quantitative Input Range Weighted Average Discount rates 7.50% - 8.00% 7.52% Terminal capitalization rates 4.75% - 5.50% 4.78% Financial Assets and Liabilities not Measured at Fair Value Financial assets and liabilities that are not measured at fair value on our consolidated balance sheets include cash equivalents (primarily money market funds, which invest in obligations of the United States government) and our secured and unsecured debt. Estimates of the fair value of these instruments are determined by the standard practice of modeling the contractual cash flows required under the instrument and discounting them back to their present value at the appropriate current risk adjusted interest rate, which is provided by a third-party specialist. For floating rate debt, we use forward rates derived from observable market yield curves to project the expected cash flows we would be required to make under the instrument. The fair value of cash equivalents and borrowings under our unsecured revolving credit facilities and unsecured term loan are classified as Level 1. The fair value of our secured debt and unsecured debt are classified as Level 2. The table below summarizes the carrying amounts and fair value of these financial instruments. (Amounts in thousands) As of June 30, 2023 As of December 31, 2022 Carrying Fair Carrying Fair Cash equivalents $ 810,395 $ 810,000 $ 402,903 $ 403,000 Debt: Mortgages payable $ 5,761,815 $ 5,592,000 $ 5,877,615 $ 5,697,000 Senior unsecured notes 1,200,000 1,016,000 1,200,000 1,021,000 Unsecured term loan 800,000 800,000 800,000 800,000 Unsecured revolving credit facilities 575,000 575,000 575,000 575,000 Total $ 8,336,815 (1) $ 7,983,000 $ 8,452,615 (1) $ 8,093,000 ____________________ (1) Excludes $59,960 and $63,572 of deferred financing costs, net and other as of June 30, 2023 and December 31, 2022, respectively. |
Stock-based Compensation
Stock-based Compensation | 6 Months Ended |
Jun. 30, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-based Compensation | Stock-based Compensation We account for all equity-based compensation in accordance with ASC Topic 718, Compensation - Stock Compensation . Stock-based compensation expense, a component of "general and administrative" expense on our consolidated statements of income, was $11,868,000 and $5,846,000 for the three months ended June 30, 2023 and 2022, respectively, and $23,582,000 and $19,001,000 for the six months ended June 30, 2023 and 2022, respectively. 2023 Omnibus Share Plan On May 18, 2023, our shareholders approved the 2023 Omnibus Share Plan (the “Plan”), which replaces the 2019 Omnibus Share Plan. Under the Plan, the Compensation Committee of Vornado’s Board of Trustees (the “Committee”) may grant incentive and non-qualified Vornado stock options, restricted Vornado common shares, restricted Operating Partnership units (“LTIP Units”), out-performance plan awards (“OPP Units”), appreciation-only long-term incentive plan units (“AO LTIP Units”), performance conditioned appreciation-only long-term incentive plan units (“Performance AO LTIP Units”), and long-term performance plan LTIP units (“LTPP Units”) to certain of our employees and officers. Awards may be granted up to a maximum of 10,800,000 shares, if all awards granted are Full Value awards, as defined in the Plan, and up to 21,600,000 shares, if all of the awards granted are Not Full Value Awards, as defined in the Plan. Full Value Awards are securities that have a value equivalent to the underlying Vornado common share or Class A unit of the Operating Partnership, such as restricted Vornado common shares or LTIP Units. Vornado stock options, AO LTIP Units and Performance AO LTIP Units are Not Full Value Awards; these securities require the payment of an exercise price. LTIP Unit and Performance AO LTIP Grant On June 29, 2023 (the “Grant Date”), the Committee granted equity awards (the “Awards”), comprised of (i) 2,394,801 LTIP Units, and (ii) 14,368,750 Performance AO LTIP Units, to a broad group of employees of the Company including its named executive officers (as identified in the Company’s proxy statement for its 2023 Annual Meeting of Shareholders). The purpose of the Awards is to further incentivize and align the award recipients with shareholder performance and to support retention of these employees. The LTIP Units are a class of units of the Operating Partnership that, following the occurrence of certain events and upon vesting, are convertible by the holder into an equivalent number of Class A Units. Class A Units of the Operating Partnership are redeemable by the holder for cash or, at the Company’s election, common shares of the Company on a one-for-one basis. The LTIP Units will vest in two equal installments on the 3rd and 4th anniversaries of the Grant Date, respectively, subject to the recipient’s continued employment with the Company as of such dates, with each vesting tranche subject to an additional one-year post-vesting transfer restriction. The LTIP Units are entitled to receive the same distributions as paid on Vornado’s common shares. The Performance AO LTIP Units are a class of Operating Partnership units and each Performance AO LTIP Unit is potentially convertible into a number of Class A Units, determined by reference to the excess of the closing market price of Vornado common shares on the NYSE on the date of conversion over $16.87. The Performance AO LTIP Units can be converted until the 10th anniversary of the Grant Date, subject to satisfaction of the vesting and performance conditions described below. The Performance AO LTIP Units will vest with respect to 20% on the 3rd anniversary of the Grant Date, and the remaining 80% will vest on the 4th anniversary of the Grant Date, subject to the recipient’s continued employment with the Company, and subject to the following performance conditions: • No Performance AO LTIP Units are earned if the Applicable Price (defined below) is less than $21.0875 per share. • At an Applicable Price of $21.0875 per share (a 25% increase above the Grant Date share price), 33% of the Performance AO LTIP Units are earned. • At an Applicable Price of $25.3050 per share (a 50% increase above the Grant Date share price), 67% of the Performance AO LTIP Units are earned. • At an Applicable Price of $29.5225 per share (a 75% increase above the Grant Date share price), 100% of the Performance AO LTIP Units are earned. Linear interpolation applies for Applicable Prices between $21.0875 and $29.5225. “Applicable Price” means the highest average consecutive 20-trading day closing share price for Vornado’s common shares during the 10 years following the Grant Date. |
Interest and Other Investment I
Interest and Other Investment Income, Net | 6 Months Ended |
Jun. 30, 2023 | |
Interest and Other Income [Abstract] | |
Interest and Other Investment Income, Net | Interest and Other Investment Income, Net The following table sets forth the details of interest and other investment income, net: (Amounts in thousands) For the Three Months Ended June 30, For the Six Months Ended June 30, 2023 2022 2023 2022 Interest on cash and cash equivalents and restricted cash $ 12,593 $ 310 $ 18,267 $ 374 Amortization of discount on investments in U.S. Treasury bills 384 1,728 3,829 1,857 Interest on loans receivable 278 994 762 1,819 Other, net — 4 — 4 $ 13,255 $ 3,036 $ 22,858 $ 4,054 |
Interest and Debt Expense
Interest and Debt Expense | 6 Months Ended |
Jun. 30, 2023 | |
Interest and Debt Expense [Abstract] | |
Interest and Debt Expense | Interest and Debt Expense The following table sets forth the details of interest and debt expense: (Amounts in thousands) For the Three Months Ended June 30, For the Six Months Ended June 30, 2023 2022 2023 2022 Interest expense $ 91,160 $ 60,742 $ 180,241 $ 111,543 Capitalized interest and debt expense (9,949) (3,701) (18,806) (7,221) Amortization of deferred financing costs 5,954 5,599 11,967 10,427 $ 87,165 $ 62,640 $ 173,402 $ 114,749 |
Income Per Share_Income Per Cla
Income Per Share/Income Per Class A Unit | 6 Months Ended |
Jun. 30, 2023 | |
Earnings Per Share [Abstract] | |
Income Per Share/Income Per Class A Unit | Income Per Share/Income Per Class A Unit Vornado Realty Trust The following table presents the calculations of (i) basic income per common share which includes the weighted average number of common shares outstanding without regard to dilutive potential common shares and (ii) diluted income per common share which includes weighted average common shares outstanding and dilutive share equivalents. Unvested share-based payment awards that contain nonforfeitable rights to dividends, whether paid or unpaid, are accounted for as participating securities. Earnings are allocated to participating securities, which include restricted common shares, based on the two-class method. Our share-based payment awards, including employee stock options, LTIP Units, OPP Units, AO LTIP Units, Performance AO LTIP Units, and LTPP Units, are included in the calculation of diluted income per share using the treasury stock method if dilutive. Our convertible securities, including our Series A convertible preferred shares, Series G-1 through G-4 convertible preferred units and Series D-13 redeemable preferred units, are reflected in diluted income per share by application of the if-converted method if dilutive. (Amounts in thousands, except per share amounts) For the Three Months Ended June 30, For the Six Months Ended June 30, 2023 2022 2023 2022 Numerator: Net income attributable to Vornado $ 61,906 $ 65,947 $ 82,603 $ 107,954 Preferred share dividends (15,529) (15,529) (31,058) (31,058) Net income attributable to common shareholders 46,377 50,418 51,545 76,896 Earnings allocated to unvested participating securities (1) (5) (1) (10) Numerator for basic income per share 46,376 50,413 51,544 76,886 Impact of assumed conversion of dilutive convertible securities 377 (380) 700 (257) Numerator for diluted income per share $ 46,753 $ 50,033 $ 52,244 $ 76,629 Denominator: Denominator for basic income per share - weighted average shares 191,468 191,750 191,668 191,737 Effect of dilutive securities (1) : Share-based payment awards 32 261 23 289 Convertible securities 3,304 28 2,673 21 Denominator for diluted income per share - weighted average shares and assumed conversions 194,804 192,039 194,364 192,047 INCOME PER COMMON SHARE - BASIC: Net income per common share $ 0.24 $ 0.26 $ 0.27 $ 0.40 INCOME PER COMMON SHARE - DILUTED: Net income per common share $ 0.24 $ 0.26 $ 0.27 $ 0.40 _____________________________________ (1) The effect of dilutive securities excluded an aggregate of 14,883 and 15,572 weighted average common share equivalents for the three months ended June 30, 2023 and 2022, respectively, and 15,005 and 15,697 weighted average common share equivalents for the six months ended June 30, 2023 and 2022, respectively, as their effect was anti-dilutive. 17. Income Per Share/Income Per Class A Unit - continued Vornado Realty L.P. The following table presents the calculations of (i) basic income per Class A unit which includes the weighted average number of Class A units outstanding without regard to dilutive potential Class A units and (ii) diluted income per Class A unit which includes the weighted average Class A units outstanding and dilutive Class A unit equivalents. Unvested share-based payment awards that contain non-forfeitable rights to dividends, whether paid or unpaid, are accounted for as participating securities. Earnings are allocated to participating securities, which include restricted Vornado common shares and our LTIP Units, based on the two-class method. Our other share-based payment awards, including Vornado stock options, OPP Units, AO LTIP Units, Performance AO LTIP Units and LTPP Units, are included in the calculation of diluted income per Class A unit using the treasury stock method if dilutive. Our convertible securities, including our Series A convertible preferred units, Series G-1 through G-4 convertible preferred units and Series D-13 redeemable preferred units, are reflected in diluted income per Class A unit by application of the if-converted method if dilutive. (Amounts in thousands, except per unit amounts) For the Three Months Ended June 30, For the Six Months Ended June 30, 2023 2022 2023 2022 Numerator: Net income attributable to Vornado Realty L.P. $ 65,514 $ 69,729 $ 86,640 $ 113,730 Preferred unit distributions (15,557) (15,557) (31,115) (31,115) Net income attributable to Class A unitholders 49,957 54,172 55,525 82,615 Earnings allocated to unvested participating securities (204) (582) (228) (1,221) Numerator for basic income per Class A unit 49,753 53,590 55,297 81,394 Impact of assumed conversion of dilutive convertible securities 377 (380) 700 (257) Numerator for diluted income per Class A unit $ 50,130 $ 53,210 $ 55,997 $ 81,137 Denominator: Denominator for basic income per Class A unit – weighted average units 205,411 205,259 205,606 205,200 Effect of dilutive securities (1) : Share-based payment awards 32 643 23 701 Convertible securities 3,304 28 2,673 21 Denominator for diluted income per Class A unit – weighted average units and assumed conversions 208,747 205,930 208,302 205,922 INCOME PER CLASS A UNIT - BASIC: Net income per Class A unit $ 0.24 $ 0.26 $ 0.27 $ 0.40 INCOME PER CLASS A UNIT - DILUTED: Net income per Class A unit $ 0.24 $ 0.26 $ 0.27 $ 0.39 ____________________ (1) The effect of dilutive securities excluded an aggregate of 940 and 1,681 weighted average Class A unit equivalents for the three months ended June 30, 2023 and 2022, respectively, and 720 and 1,822 weighted average Class A unit equivalents for the six months ended June 30, 2023 and 2022, respectively, as their effect was anti-dilutive. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Insurance For our properties, we maintain general liability insurance with limits of $300,000,000 per occurrence and per property, of which $275,000,000, increased from $250,000,000 effective June 20, 2023, includes communicable disease coverage and we maintain all risk property and rental value insurance with limits of $2.0 billion per occurrence, with sub-limits for certain perils such as flood and earthquake, excluding communicable disease coverage. Our California properties have earthquake insurance with coverage of $350,000,000 per occurrence and in the aggregate, subject to a deductible in the amount of 5% of the value of the affected property. We maintain coverage for certified terrorism acts with limits of $6.0 billion per occurrence and in the aggregate (as listed below), $1.2 billion for non-certified acts of terrorism, and $5.0 billion per occurrence and in the aggregate for terrorism involving nuclear, biological, chemical and radiological (“NBCR”) terrorism events, as defined by the Terrorism Risk Insurance Act of 2002, as amended to date and which has been extended through December 2027. Penn Plaza Insurance Company, LLC (“PPIC”), our wholly owned consolidated subsidiary, acts as a re-insurer with respect to a portion of all risk property and rental value insurance and a portion of our earthquake insurance coverage, and as a direct insurer for coverage for acts of terrorism including NBCR acts. Coverage for acts of terrorism (excluding NBCR acts) is fully reinsured by third-party insurance companies and the Federal government with no exposure to PPIC. For NBCR acts, PPIC is responsible for a deductible of $1,774,525 and 20% of the balance of a covered loss and the Federal government is responsible for the remaining portion of a covered loss. We are ultimately responsible for any loss incurred by PPIC. Certain condominiums in which we own an interest (including the Farley Condominiums) maintain insurance policies with different per occurrence and aggregate limits than our policies described above. We continue to monitor the state of the insurance market and the scope and costs of coverage for acts of terrorism and other events. However, we cannot anticipate what coverage will be available on commercially reasonable terms in the future. We are responsible for uninsured losses and for deductibles and losses in excess of our insurance coverage, which could be material . Our debt instruments, consisting of mortgage loans secured by our properties, senior unsecured notes and revolving credit agreements contain customary covenants requiring us to maintain insurance. Although we believe that we have adequate insurance coverage for purposes of these agreements, we may not be able to obtain an equivalent amount of coverage at reasonable costs in the future. Further, if lenders insist on greater coverage than we are able to obtain it could adversely affect our ability to finance or refinance our properties and expand our portfolio. Other Commitments and Contingencies We are from time to time involved in legal actions arising in the ordinary course of business. In our opinion, after consultation with legal counsel, the outcome of such matters is not currently expected to have a material adverse effect on our financial position, results of operations or cash flows. Each of our properties has been subjected to varying degrees of environmental assessment at various times. The environmental assessments did not reveal any material environmental contamination. However, there can be no assurance that the identification of new areas of contamination, changes in the extent or known scope of contamination, the discovery of additional sites, or changes in cleanup requirements would not result in significant costs to us. In January 2022, we exercised the second of three 25-year renewal options on our PENN 1 ground lease. The first renewal option period commenced June 2023 and, together with the second option exercise, extends the lease term through June 2073. As a result of the exercise, we remeasured the related ground lease liability and recorded an estimated incremental right-of-use asset and lease liability of approximately $350,000,000, respectively, on our consolidated balance sheets. The ground lease is subject to fair market value resets at each 25-year renewal period. The rent reset effective June 2023 has yet to be determined and may be material. In July 2018, we leased 78,000 square feet at 345 Montgomery Street in San Francisco, CA, to a subsidiary of Regus PLC, for an initial term of 15 years. The obligations under the lease were guaranteed by Regus PLC in an amount of up to $90,000,000. The tenant purported to terminate the lease prior to space delivery. We commenced a suit on October 23, 2019 seeking to enforce the lease and the guaranty. On May 11, 2021, the court issued a final statement of decision in our favor and on January 31, 2023, the Court of Appeal affirmed the lower court's decision. On October 9, 2020, the successor to Regus PLC filed for bankruptcy in Luxembourg. In April 2023, we entered into a settlement with affiliates of the successor to Regus PLC, pursuant to which we agreed to discontinue all legal proceedings against the Regus PLC successor and its affiliates in exchange for a payment to us of $21,350,000, which is included in “rental revenues” on our consolidated statements of income for the three and six months ended June 30, 2023, of which $6,405,000 is attributable to noncontrolling interest. 18. Commitments and Contingencies - continued Other Commitments and Contingencies - continued We may, from time to time, enter into guarantees including, but not limited to, payment guarantees to lenders of unconsolidated joint ventures for tax purposes, completion guarantees for development and redevelopment projects, and guarantees to fund leasing costs. These agreements terminate either upon the satisfaction of specified obligations or repayment of the underlying loans. As of June 30, 2023, the aggregate dollar amount of these guarantees is approximately $1,044,000,000, primarily comprised of payment guarantees for the mortgage loans secured by 640 Fifth Avenue, 7 West 34th Street and 435 Seventh Avenue. Other than these loans, our mortgage loans are non-recourse to us. In addition, we have guaranteed the rent and payments in lieu of real estate taxes due to Empire State Development (“ESD”), an entity of New York State, for the Farley Building. The aggregate dollar amount of the guarantee is $508,000,000 but the guarantee will be terminated if we surrender possession of the property to ESD or if we no longer hold a direct or indirect interest in the property. As of June 30, 2023, $30,233,000 of letters of credit were outstanding under one of our unsecured revolving credit facilities. Our unsecured revolving credit facilities contain financial covenants that require us to maintain minimum interest coverage and maximum debt to market capitalization ratios and provide for higher interest rates in the event of a decline in our ratings below Baa3/BBB- (our current ratings). Our unsecured revolving credit facilities also contain customary conditions precedent to borrowing, including representations and warranties, and also contain customary events of default that could give rise to accelerated repayment, including such items as failure to pay interest or principal. Our 95% consolidated joint venture (5% is owned by Related Companies ("Related")) developed and owns the Farley Building. In connection with the development of the property, the joint venture admitted a historic tax credit investor partner. Under the terms of the historic tax credit arrangement, the joint venture is required to comply with various laws, regulations, and contractual provisions. Non-compliance with applicable requirements could result in projected tax benefits not being realized and, therefore, may require a refund or reduction of the Tax Credit Investor’s capital contributions. As of June 30, 2023, the Tax Credit Investor has made $92,400,000 in capital contributions. Vornado and Related have guaranteed certain of the joint venture’s obligations to the Tax Credit Investor. As investment manager of the Fund, we are entitled to an incentive allocation after the limited partners have received a preferred return on their invested capital. The incentive allocation is subject to catch-up and clawback provisions. Accordingly, based on the June 30, 2023 fair value of the Fund assets, at liquidation we would be required to make a $27,200,000 payment to the limited partners, net of amounts owed to us, representing a clawback of previously paid incentive allocations, which would have no income statement impact as it was previously accrued. As of June 30, 2023, we have construction commitments aggregating approximately $261,000,000. |
Segment Information
Segment Information | 6 Months Ended |
Jun. 30, 2023 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information We operate in two reportable segments, New York and Other, which is based on how we manage our business. Net operating income ("NOI") at share represents total revenues less operating expenses including our share of partially owned entities. NOI at share - cash basis represents NOI at share adjusted to exclude straight-line rental income and expense, amortization of acquired below and above market leases, net and other non-cash adjustments. We consider NOI at share - cash basis to be the primary non-GAAP financial measure for making decisions and assessing the unlevered performance of our segments as it relates to the total return on assets as opposed to the levered return on equity. As properties are bought and sold based on NOI at share - cash basis, we utilize this measure to make investment decisions as well as to compare the performance of our assets to that of our peers. NOI at share and NOI at share - cash basis should not be considered alternatives to net income or cash flow from operations and may not be comparable to similarly titled measures employed by other companies. 19. Segment Information - continued Below is a summary of NOI at share and NOI at share - cash basis by segment for the three and six months ended June 30, 2023 and 2022. (Amounts in thousands) For the Three Months Ended June 30, 2023 Total New York Other Total revenues $ 472,359 $ 362,471 $ 109,888 Operating expenses (222,723) (176,410) (46,313) NOI - consolidated 249,636 186,061 63,575 Deduct: NOI attributable to noncontrolling interests in consolidated subsidiaries (18,742) (5,204) (13,538) Add: NOI from partially owned entities 70,745 67,509 3,236 NOI at share 301,639 248,366 53,273 Non-cash adjustments for straight-line rents, amortization of acquired below-market leases, net, and other (5,570) (6,797) 1,227 NOI at share - cash basis $ 296,069 $ 241,569 $ 54,500 (Amounts in thousands) For the Three Months Ended June 30, 2022 Total New York Other Total revenues $ 453,494 $ 364,162 $ 89,332 Operating expenses (222,309) (176,572) (45,737) NOI - consolidated 231,185 187,590 43,595 Deduct: NOI attributable to noncontrolling interests in consolidated subsidiaries (16,299) (10,707) (5,592) Add: NOI from partially owned entities 74,060 71,209 2,851 NOI at share 288,946 248,092 40,854 Non-cash adjustments for straight-line rents, amortization of acquired below-market leases, net, and other (4,275) (6,189) 1,914 NOI at share - cash basis $ 284,671 $ 241,903 $ 42,768 (Amounts in thousands) For the Six Months Ended June 30, 2023 Total New York Other Total revenues $ 918,282 $ 726,285 $ 191,997 Operating expenses (451,496) (364,731) (86,765) NOI - consolidated 466,786 361,554 105,232 Deduct: NOI attributable to noncontrolling interests in consolidated subsidiaries (30,506) (10,027) (20,479) Add: NOI from partially owned entities 138,842 132,833 6,009 NOI at share 575,122 484,360 90,762 Non-cash adjustments for straight-line rents, amortization of acquired below-market leases, net and other (518) (1,764) 1,246 NOI at share - cash basis $ 574,604 $ 482,596 $ 92,008 (Amounts in thousands) For the Six Months Ended June 30, 2022 Total New York Other Total revenues $ 895,624 $ 722,710 $ 172,914 Operating expenses (438,838) (354,107) (84,731) NOI - consolidated 456,786 368,603 88,183 Deduct: NOI attributable to noncontrolling interests in consolidated subsidiaries (36,334) (24,017) (12,317) Add: NOI from partially owned entities 152,752 147,173 5,579 NOI at share 573,204 491,759 81,445 Non-cash adjustments for straight-line rents, amortization of acquired below-market leases, net and other (7,405) (10,164) 2,759 NOI at share - cash basis $ 565,799 $ 481,595 $ 84,204 19. Segment Information - continued Below is a reconciliation of net income to NOI at share and NOI at share - cash basis for the three and six months ended June 30, 2023 and 2022. (Amounts in thousands) For the Three Months Ended June 30, For the Six Months Ended June 30, 2023 2022 2023 2022 Net income $ 62,733 $ 68,903 $ 73,931 $ 122,278 Depreciation and amortization expense 107,162 118,662 213,727 236,105 General and administrative expense 39,410 31,902 81,005 73,118 Transaction related costs and other 30 2,960 688 3,965 Income from partially owned entities (37,272) (25,720) (53,938) (59,434) Loss (income) from real estate fund investments 102 142 121 (5,532) Interest and other investment income, net (13,255) (3,036) (22,858) (4,054) Interest and debt expense 87,165 62,640 173,402 114,749 Net gains on disposition of wholly owned and partially owned assets (936) (28,832) (8,456) (35,384) Income tax expense 4,497 3,564 9,164 10,975 NOI from partially owned entities 70,745 74,060 138,842 152,752 NOI attributable to noncontrolling interests in consolidated subsidiaries (18,742) (16,299) (30,506) (36,334) NOI at share 301,639 288,946 575,122 573,204 Non-cash adjustments for straight-line rents, amortization of acquired below-market leases, net and other (5,570) (4,275) (518) (7,405) NOI at share - cash basis $ 296,069 $ 284,671 $ 574,604 $ 565,799 |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2023 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events The Armory Show On July 3, 2023, we completed the sale of The Armory Show, located in New York, for $24,400,000, subject to certain post-closing adjustments. The financial statement gain, which will be recognized in the third quarter of 2023, will be approximately $20,000,000. 825 Seventh Avenue On July 24, 2023, a joint venture, in which we have a 50% interest, completed a $54,000,000 refinancing of the office condominium of 825 Seventh Avenue, a 173,000 square foot Manhattan office and retail building. The interest-only loan bears a rate of SOFR plus 2.75%, with a 30 basis point reduction available upon satisfaction of certain leasing conditions, and matures in January 2026. The loan replaces the previous $60,000,000 loan that bore interest at LIBOR plus 2.35% and was scheduled to mature in July 2023. Manhattan Retail Properties Sale On July 27, 2023, we entered into an agreement to sell four Manhattan retail properties located at 510 Fifth Avenue, 148–150 Spring Street, 443 Broadway and 692 Broadway for $100,000,000. We expect to close the sale in the third quarter of 2023 and recognize a financial statement loss of approximately $500,000. The sale is subject to customary closing conditions. As of June 30, 2023, $96,106,000 of assets associated with these properties were classified as held-for-sale and are included in “other assets” on our consolidated balance sheets. |
Recently Issued Accounting Li_2
Recently Issued Accounting Literature (Policies) | 6 Months Ended |
Jun. 30, 2023 | |
Accounting Standards Update and Change in Accounting Principle [Abstract] | |
Basis of Presentation | The accompanying consolidated financial statements are unaudited and include the accounts of Vornado and the Operating Partnership and their consolidated subsidiaries. All adjustments (which include only normal recurring adjustments) necessary to present fairly the financial position, results of operations and changes in cash flows have been made. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) have been condensed or omitted. These condensed consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q of the Securities and Exchange Commission (“SEC”) and should be read in conjunction with the consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2022, as filed with the SEC. We have made estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates. The results of operations for the three and six months ended June 30, 2023 are not necessarily indicative of the operating results for the full year. In addition, certain prior year balances have been reclassified in order to conform to the current period presentation. |
Recently Issued Accounting Literature | Recently Issued Accounting Literature In March 2020, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2020-04 establishing Accounting Standards Codification ("ASC") Topic 848, Reference Rate Reform , and in January 2021, the FASB issued ASU 2021-01, Reference Rate Reform (Topic 848): Scope (collectively, "ASC 848"). ASC 848 contains practical expedients for reference rate reform related activities that impact debt, leases, derivatives and other contracts. The guidance in ASC 848 is optional and may be elected over time as reference rate reform activities occur. We have elected to apply the hedge accounting expedients related to probability and the assessments of effectiveness for future LIBOR-indexed cash flows to assume that the index upon which future hedged transactions will be based matches the index on the corresponding derivatives. Application of these expedients preserves the presentation of derivatives consistent with past presentation. In December 2022, the FASB issued ASU 2022-06, Deferral of the Sunset Date of Topic 848 (“ASU 2022-06”) which was issued to defer the sunset date of ASC 848 to December 31, 2024. ASU 2022-06 is effective immediately for all companies. For our derivatives in hedge accounting relationships, we have utilized the elective relief in ASC 848, allowing for the continuation of hedge accounting though the transition process. |
Real Estate Fund Investments | The Fund is accounted for under ASC Topic 946, Financial Services – Investment Companies (“ASC 946”) and its investments are reported on its balance sheet at fair value, with changes in value each period recognized in earnings. We consolidate the accounts of the Fund into our consolidated financial statements, retaining the fair value basis of accounting. |
Redeemable Noncontrolling Interests | Redeemable noncontrolling partnership units are primarily comprised of Class A Operating Partnership units held by third parties and are recorded at the greater of their carrying amount or redemption value at the end of each reporting period. Changes in the value from period to period are charged to “additional capital” in Vornado’s consolidated statements of changes in equity and to “partners’ capital” on the consolidated balance sheets of the Operating Partnership. Redeemable noncontrolling partnership units exclude our Series G-1 through G-4 convertible preferred units and Series D-13 cumulative redeemable preferred units, as they are accounted for as liabilities in accordance with ASC Topic 480, Distinguishing Liabilities and Equity |
Fair Value Measurement | ASC 820 defines fair value and establishes a framework for measuring fair value. The objective of fair value is to determine the price that would be received upon the sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (the exit price). ASC 820 establishes a fair value hierarchy that prioritizes observable and unobservable inputs used to measure fair value into three levels: Level 1 – quoted prices (unadjusted) in active markets that are accessible at the measurement date for assets or liabilities as well as certain U.S. Treasury securities that are highly liquid and are actively traded in secondary markets; Level 2 – observable prices that are based on inputs not quoted in active markets, but corroborated by market data; and Level 3 – unobservable inputs that are used when little or no market data is available. The fair value hierarchy gives the highest priority to Level 1 inputs and the lowest priority to Level 3 inputs. In determining fair value, we utilize valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible, as well as consider counterparty credit risk in our assessment of fair value. Considerable judgment is necessary to interpret Level 2 and 3 inputs in determining the fair value of our financial and non-financial assets and liabilities. Accordingly, our fair value estimates, which are made at the end of each reporting period, may be different than the amounts that may ultimately be realized upon sale or disposition of these assets. |
Loans Receivable | Loans receivable consist of loan investments in real estate related assets for which we have elected the fair value option under ASC 825-10. These investments are classified as Level 3. |
Stock-based Compensation | We account for all equity-based compensation in accordance with ASC Topic 718, Compensation - Stock Compensation . Stock-based compensation expense, a component of "general and administrative" expense on our consolidated statements of income, was $11,868,000 and $5,846,000 for the three months ended June 30, 2023 and 2022, respectively, and $23,582,000 and $19,001,000 for the six months ended June 30, 2023 and 2022, respectively. |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Revenue Sources by Segment | Below is a summary of our revenues by segment. Additional financial information related to these reportable segments for the three and six months ended June 30, 2023 and 2022 is set forth in Note 19 - Segment Information. (Amounts in thousands) For the Three Months Ended June 30, 2023 For the Three Months Ended June 30, 2022 Total New York Other Total New York Other Property rentals $ 397,053 $ 305,182 $ 91,871 (1) $ 383,049 $ 309,882 $ 73,167 Trade shows 6,782 — 6,782 5,842 — 5,842 Lease revenues (2) 403,835 305,182 98,653 388,891 309,882 79,009 Tenant services 9,804 7,325 2,479 11,461 8,133 3,328 Parking revenues 5,195 4,195 1,000 4,842 4,025 817 Rental revenues 418,834 316,702 102,132 405,194 322,040 83,154 BMS cleaning fees 35,146 37,754 (2,608) (3) 33,999 36,206 (2,207) (3) Management and leasing fees 3,658 3,761 (103) 2,866 3,011 (145) Other income 14,721 4,254 10,467 11,435 2,905 8,530 Fee and other income 53,525 45,769 7,756 48,300 42,122 6,178 Total revenues $ 472,359 $ 362,471 $ 109,888 $ 453,494 $ 364,162 $ 89,332 ____________________ See notes below. (Amounts in thousands) For the Six Months Ended June 30, 2023 For the Six Months Ended June 30, 2022 Total New York Other Total New York Other Property rentals $ 773,882 $ 612,904 $ 160,978 (1) $ 760,936 $ 617,605 $ 143,331 Trade shows 11,830 — 11,830 10,986 — 10,986 Lease revenues (2) 785,712 612,904 172,808 771,922 617,605 154,317 Tenant services 19,573 14,907 4,666 21,350 15,544 5,806 Parking revenues 10,342 8,407 1,935 9,205 7,736 1,469 Rental revenues 815,627 636,218 179,409 802,477 640,885 161,592 BMS cleaning fees 70,474 75,432 (4,958) (3) 66,690 70,917 (4,227) (3) Management and leasing fees 6,707 6,934 (227) 5,635 5,978 (343) Other income 25,474 7,701 17,773 20,822 4,930 15,892 Fee and other income 102,655 90,067 12,588 93,147 81,825 11,322 Total revenues $ 918,282 $ 726,285 $ 191,997 $ 895,624 $ 722,710 $ 172,914 ____________________ (1) The three and six months ended June 30, 2023 include the receipt of a $21,350 tenant settlement, of which $6,405 is attributable to noncontrolling interests. (2) The components of lease revenues were as follows: For the Three Months Ended June 30, For the Six Months Ended June 30, 2023 2022 2023 2022 Fixed billings $ 362,326 $ 342,891 $ 710,240 $ 672,142 Variable billings 37,216 31,225 75,155 64,199 Total contractual operating lease billings 399,542 374,116 785,395 736,341 Adjustment for straight-line rents and amortization of acquired below-market leases and other, net 4,293 15,276 317 36,082 Less: write-off of straight-line rent and tenant receivables deemed uncollectible — (501) — (501) Lease revenues $ 403,835 $ 388,891 $ 785,712 $ 771,922 (3) Represents the elimination of Building Maintenance Services LLC ("BMS") cleaning fees related to THE MART and 555 California Street which are included as income in the New York segment. |
Schedule of Components of Fixed and Variable Lease Revenues | The components of lease revenues were as follows: For the Three Months Ended June 30, For the Six Months Ended June 30, 2023 2022 2023 2022 Fixed billings $ 362,326 $ 342,891 $ 710,240 $ 672,142 Variable billings 37,216 31,225 75,155 64,199 Total contractual operating lease billings 399,542 374,116 785,395 736,341 Adjustment for straight-line rents and amortization of acquired below-market leases and other, net 4,293 15,276 317 36,082 Less: write-off of straight-line rent and tenant receivables deemed uncollectible — (501) — (501) Lease revenues $ 403,835 $ 388,891 $ 785,712 $ 771,922 |
Real Estate Fund Investments (T
Real Estate Fund Investments (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Real Estate Fund Investments [Abstract] | |
Schedule of Income and Loss From The Fund | Below is a summary of (loss) income from the Fund and the Crowne Plaza Joint Venture. (Amounts in thousands) For the Three Months Ended June 30, For the Six Months Ended June 30, 2023 2022 2023 2022 Net investment (loss) income $ (102) $ 6,658 $ (121) $ 6,660 Previously recorded unrealized loss on exited investments — 53,724 247,575 59,396 Realized loss on exited investments — (53,724) (247,575) (53,724) Net unrealized loss on held investments — (6,800) — (6,800) (Loss) income from real estate fund investments (102) (142) (121) 5,532 Less loss (income) attributable to noncontrolling interests in consolidated subsidiaries 143 365 382 (3,599) Income from real estate fund investments net of noncontrolling interests in consolidated subsidiaries $ 41 $ 223 $ 261 $ 1,933 |
Schedule of Changes in Fair Value of Fund and the Crowne Plaza Joint Venture | The table below summarizes the changes in the fair value of the Fund and the Crowne Plaza Joint Venture. (Amounts in thousands) For the Three Months Ended June 30, For the Six Months Ended June 30, 2023 2022 2023 2022 Beginning balance $ — $ 13,402 $ — $ 7,730 Previously recorded unrealized loss on exited investments — 53,724 247,575 59,396 Realized loss on exited investments — (53,724) (247,575) (53,724) Net unrealized loss on held investments — (6,800) — (6,800) Dispositions — (5,672) — (5,672) Ending balance $ — $ 930 $ — $ 930 |
Investments in Partially Owne_2
Investments in Partially Owned Entities (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Schedule of Equity Method Investments | Below is a schedule summarizing our investments in partially owned entities. (Amounts in thousands) Percentage Ownership as of June 30, 2023 Balance as of June 30, 2023 December 31, 2022 Investments: Fifth Avenue and Times Square JV (see page 27 51.5% $ 2,256,952 $ 2,272,320 Partially owned office buildings/land (1) Various 173,950 182,180 Alexander's (see above for details) 32.4% 96,288 87,796 Other investments (2) Various 114,107 122,777 $ 2,641,297 $ 2,665,073 Investments in partially owned entities included in other liabilities (3) : 7 West 34th Street 53.0% $ (67,729) $ (65,522) 85 Tenth Avenue 49.9% (11,200) (16,006) $ (78,929) $ (81,528) ____________________ (1) Includes interests in 280 Park Avenue, 650 Madison Avenue, 512 West 22nd Street, 61 Ninth Avenue and others. (2) Includes interests in Independence Plaza, Rosslyn Plaza and others. (3) Our negative basis results from distributions in excess of our investment. 6. Investments in Partially Owned Entities - continued Below is a schedule of income from partially owned entities. (Amounts in thousands) Percentage Ownership at June 30, 2023 For the Three Months Ended June 30, For the Six Months Ended 2023 2022 2023 2022 Our share of net income (loss): Fifth Avenue and Times Square JV (see page 27 Equity in net income (1) 51.5% $ 5,941 $ 13,665 $ 16,140 $ 29,974 Return on preferred equity, net of our share of the expense 9,329 9,329 18,555 18,555 15,270 22,994 34,695 48,529 Alexander's (see page 28 Net gain on sale of land 32.4% 16,396 — 16,396 — Equity in net income 3,318 4,824 6,889 9,495 Management, leasing and development fees 1,699 1,162 2,872 2,182 21,413 5,986 26,157 11,677 Partially owned office buildings (2) Various (254) (4,980) (9,217) (3,688) Other investments (3) Various 843 1,720 2,303 2,916 $ 37,272 $ 25,720 $ 53,938 $ 59,434 ____________________ (1) The three and six months ended June 30, 2023 include (i) a $5,120 accrual of default interest which was forgiven by the lender as part of the restructuring of the 697-703 Fifth Avenue loan and will be amortized over the remaining term of the restructured loan, reducing future interest expense, and (ii) reductions in income at 697-703 Fifth Avenue and 666 Fifth Avenue upon lease renewals. (2) Includes interests in 280 Park Avenue, 650 Madison Avenue, 7 West 34th Street, 512 West 22nd Street, 61 Ninth Avenue, 85 Tenth Avenue and others. (3) Includes interests in Independence Plaza, Rosslyn Plaza and others. |
Identified Intangible Assets _2
Identified Intangible Assets and Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Finite-Lived Intangible Assets [Line Items] | |
Schedule of Identified Intangible Assets and Intangible Liabilities | The following summarizes our identified intangible assets (primarily above-market leases) and liabilities (primarily below-market leases). (Amounts in thousands) Balance as of June 30, 2023 December 31, 2022 Identified intangible assets: Gross amount $ 237,777 $ 237,777 Accumulated amortization (103,094) (98,139) Total, net $ 134,683 $ 139,638 Identified intangible liabilities (included in deferred revenue): Gross amount $ 244,396 $ 244,396 Accumulated amortization (212,300) (208,592) Total, net $ 32,096 $ 35,804 |
Below Market Leases Net Of Above Market Leases | |
Finite-Lived Intangible Assets [Line Items] | |
Schedule of Future Amortization Expense of Intangible Assets | Estimated annual amortization for each of the five succeeding years commencing January 1, 2024 is below: (Amounts in thousands) 2024 $ 2,352 2025 941 2026 299 2027 (148) 2028 (43) |
Other Identified Intangible Assets | |
Finite-Lived Intangible Assets [Line Items] | |
Schedule of Future Amortization Expense of Intangible Assets | Estimated annual amortization for each of the five succeeding years commencing January 1, 2024 is below: (Amounts in thousands) 2024 $ 7,128 2025 6,078 2026 5,884 2027 5,449 2028 4,290 |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | The following is a summary of our debt: (Amounts in thousands) Weighted Average Interest Rate as of June 30, 2023 (1) Balance as of June 30, 2023 December 31, 2022 Mortgages Payable: Fixed rate 3.63% $ 3,569,100 $ 3,570,000 Variable rate (2) 5.83% 2,192,715 2,307,615 Total 4.47% 5,761,815 5,877,615 Deferred financing costs, net and other (46,677) (48,597) Total, net $ 5,715,138 $ 5,829,018 Unsecured Debt: Senior unsecured notes 3.02% $ 1,200,000 $ 1,200,000 Deferred financing costs, net and other (7,147) (8,168) Senior unsecured notes, net 1,192,853 1,191,832 Unsecured term loan 4.04% 800,000 800,000 Deferred financing costs, net and other (6,136) (6,807) Unsecured term loan, net 793,864 793,193 Unsecured revolving credit facilities 3.87% 575,000 575,000 Total, net $ 2,561,717 $ 2,560,025 ____________________ (1) Represents the interest rate in effect as of June 30, 2023 based on the appropriate reference rate as of the contractual reset date plus contractual spread, adjusted for hedging instruments, as applicable. See Note 14 - Fair Value Measurements for further information on our consolidated hedging instruments. (2) As of June 30, 2023, $2,009,119 of our variable rate debt is subject to interest rate cap arrangements. The interest rate cap arrangements have a weighted average strike rate of 4.18% and a weighted average remaining term of 10 months. These amounts exclude the 1290 Avenue of the Americas interest rate cap discussed above, which is effective November 2023. |
Redeemable Noncontrolling Int_2
Redeemable Noncontrolling Interests (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Noncontrolling Interest [Abstract] | |
Schedule of Activity of Redeemable Noncontrolling Interests | Below is a table summarizing the activity of redeemable noncontrolling partnership units. (Amounts in thousands) For the Three Months Ended June 30, For the Six Months Ended June 30, 2023 2022 2023 2022 Beginning balance $ 351,743 $ 649,758 $ 348,692 $ 590,975 Net income 3,608 3,782 4,037 5,776 Other comprehensive income (loss) 4,472 1,611 (1,608) 6,745 Distributions (28) (7,577) (5,629) (15,161) Redemption of Class A units for Vornado common shares, at redemption value (5,371) (860) (5,558) (1,577) Redeemable Class A unit measurement adjustment 43,270 (240,413) 67,113 (193,762) Other, net 12,582 5,721 3,229 19,026 Ending balance $ 410,276 $ 412,022 $ 410,276 $ 412,022 Below is a table summarizing the activity of the redeemable noncontrolling interest in a consolidated subsidiary. (Amounts in thousands) For the Three Months Ended June 30, For the Six Months Ended June 30, 2023 2022 2023 2022 Beginning balance $ 78,796 $ 97,403 $ 88,040 $ 97,708 Net loss (8,776) (3,416) (18,020) (3,721) Ending balance $ 70,020 $ 93,987 $ 70,020 $ 93,987 |
Shareholders' Equity_Partners_2
Shareholders' Equity/Partners' Capital (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Equity [Abstract] | |
Schedule of Dividends | The following table sets forth the details of our dividends/distributions per common share/Class A unit and dividends/distributions per share/unit for each class of preferred shares/units of beneficial interest. (Per share/unit) For the Three Months Ended June 30, For the Six Months Ended June 30, 2023 2022 2023 2022 Common shares/Class A units held by Vornado: authorized 250,000,000 shares/units $ — $ 0.53 $ 0.375 $ 1.06 Preferred shares/units (1) Convertible Preferred: 6.5% Series A: authorized 12,902 shares/units (2) 0.8125 0.8125 1.6250 1.6250 Cumulative Redeemable Preferred (1)(3) : 5.40% Series L: authorized 13,800,000 shares/units 0.3375 0.3375 0.6750 0.6750 5.25% Series M: authorized 13,800,000 shares/units 0.3281 0.3281 0.6562 0.6562 5.25% Series N: authorized 12,000,000 shares/units 0.3281 0.3281 0.6562 0.6562 4.45% Series O: authorized 12,000,000 shares/units 0.2781 0.2781 0.5562 0.5562 ____________________ (1) Dividends on preferred shares and distributions on preferred units are cumulative and are payable quarterly in arrears. (2) Redeemable at the option of Vornado under certain circumstances, at a redemption price of 1.9531 common shares/Class A units per Series A preferred share/unit plus accrued and unpaid dividends/distributions through the date of redemption, or convertible at any time at the option of the holder for 1.9531 common shares/Class A units per Series A preferred share/unit. (3) Series L and Series M preferred shares/units are redeemable at Vornado's option at a redemption price of $25.00 per share/unit, plus accrued and unpaid dividends/distributions through the date of redemption. Series N preferred shares/units are redeemable commencing November 2025 and Series O preferred shares/units are redeemable commencing September 2026, each at a redemption price of $25.00 per share/unit. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation | |
Schedule of Assets and Liabilities Measures on Recurring Basis, Fair Value | The tables below aggregate the fair values of these financial assets and liabilities by their levels in the fair value hierarchy. (Amounts in thousands) As of June 30, 2023 Total Level 1 Level 2 Level 3 Deferred compensation plan assets ($30,384 included in restricted cash and $68,666 in other assets) $ 99,050 $ 60,397 $ — $ 38,653 Loans receivable ($52,094 included in investments in partially owned entities and $4,455 in other assets) 56,549 — — 56,549 Interest rate swaps and caps (included in other assets) 242,379 — 242,379 — Total assets $ 397,978 $ 60,397 $ 242,379 $ 95,202 Mandatorily redeemable instruments (included in other liabilities) $ 49,383 $ 49,383 $ — $ — Interest rate swaps (included in other liabilities) 1,280 — 1,280 — Total liabilities $ 50,663 $ 49,383 $ 1,280 $ — (Amounts in thousands) As of December 31, 2022 Total Level 1 Level 2 Level 3 Investments in U.S. Treasury bills (1) $ 471,962 $ 471,962 $ — $ — Deferred compensation plan assets ($7,763 included in restricted cash and $88,559 in other assets) 96,322 57,406 — 38,916 Loans receivable ($50,091 included in investments in partially owned entities and $4,306 in other assets) 54,397 — — 54,397 Interest rate swaps and caps (included in other assets) 183,804 — 183,804 — Total assets $ 806,485 $ 529,368 $ 183,804 $ 93,313 Mandatorily redeemable instruments (included in other liabilities) $ 49,383 $ 49,383 $ — $ — ____________________ (1) During the six months ended June 30, 2023, we |
Schedule of Changes In Fair Value of Loans Receivable | The table below summarizes the changes in the fair value of the Fund and the Crowne Plaza Joint Venture. (Amounts in thousands) For the Three Months Ended June 30, For the Six Months Ended June 30, 2023 2022 2023 2022 Beginning balance $ — $ 13,402 $ — $ 7,730 Previously recorded unrealized loss on exited investments — 53,724 247,575 59,396 Realized loss on exited investments — (53,724) (247,575) (53,724) Net unrealized loss on held investments — (6,800) — (6,800) Dispositions — (5,672) — (5,672) Ending balance $ — $ 930 $ — $ 930 |
Schedule of Derivative Assets at Fair Value | The following table summarizes our consolidated hedging instruments, all of which hedge variable rate debt, as of June 30, 2023 and December 31, 2022. (Amounts in thousands) As of June 30, 2023 As of December 31, 2022 Notional Amount All-In Swapped Rate Swap/Cap Expiration Date Fair Value Asset Fair Value Liability Fair Value Asset Interest rate swaps: 555 California Street mortgage loan: In-place swap $ 840,000 (1) 2.29% 05/24 $ 36,414 $ — $ 49,888 Forward swap (effective 05/24) 840,000 (1) 6.03% 05/26 — 1,280 — 770 Broadway mortgage loan 700,000 4.98% 07/27 33,320 — 29,226 PENN 11 mortgage loan 500,000 2.22% 03/24 17,471 — 26,587 Unsecured revolving credit facility 575,000 3.87% 08/27 27,738 — 24,457 Unsecured term loan (2) 800,000 4.04% (2) 24,001 — 21,024 100 West 33rd Street mortgage loan 480,000 5.06% 06/27 11,203 — 6,886 888 Seventh Avenue mortgage loan 200,000 (3) 4.76% 09/27 7,880 — 6,544 4 Union Square South mortgage loan 99,100 (4) 3.74% 01/25 3,916 — 4,050 Interest rate caps: 1290 Avenue of the Americas mortgage loan 950,000 (5) 11/25 66,456 — 7,590 One Park Avenue mortgage loan 525,000 (6) 03/25 10,870 — 5,472 Various mortgage loans 3,110 — 2,080 $ 242,379 $ 1,280 $ 183,804 ____________________ (1) Represents our 70.0% share of the $1.2 billion mortgage loan. In March 2023, we entered into the forward swap arrangement detailed above. (2) Represents the aggregate fair value of various interest rate swap arrangements to hedge interest payments on our unsecured term loan. In February 2023, we entered into a forward interest rate swap arrangement for $150,000 of the $800,000 unsecured term loan . The unsecured term loan, which matures in December 2027, is subject to various interest rate swap arrangements through August 2027, which are detailed below: Swapped Balance All-In Swapped Rate Unswapped Balance Through 10/23 $ 800,000 4.04% $ — 10/23 through 07/25 700,000 4.52% 100,000 07/25 through 10/26 550,000 4.35% 250,000 10/26 through 08/27 50,000 4.03% 750,000 (3) The remaining $67,000 amortizing mortgage loan balance bears interest at a floating rate of SOFR plus 1.80% (6.96% as of June 30, 2023). (4) The remaining $20,900 mortgage loan balance bears interest at a floating rate of SOFR plus 1.50% (6.66% as of June 30, 2023). (5) Current SOFR cap strike rate of 3.89%. In June 2023, we entered into a forward cap arrangement which is effective upon the November 2023 expiration of the current in-place cap and expires in November 2025. The forward cap has a SOFR strike rate of 1.00%. In connection with the arrangement, we made a $63,100 up-front payment, of which $18,930 is attributable to noncontrolling interests. See Note 9 - Debt for further information. (6) Current SOFR cap strike rate of 3.89%. In March 2023, we entered into a forward cap arrangement which is effective upon the March 2024 expiration of the current in-place cap and expires in March 2025. The forward cap has a SOFR strike rate of 3.89%. |
Schedule of Derivative Liabilities at Fair Value | The following table summarizes our consolidated hedging instruments, all of which hedge variable rate debt, as of June 30, 2023 and December 31, 2022. (Amounts in thousands) As of June 30, 2023 As of December 31, 2022 Notional Amount All-In Swapped Rate Swap/Cap Expiration Date Fair Value Asset Fair Value Liability Fair Value Asset Interest rate swaps: 555 California Street mortgage loan: In-place swap $ 840,000 (1) 2.29% 05/24 $ 36,414 $ — $ 49,888 Forward swap (effective 05/24) 840,000 (1) 6.03% 05/26 — 1,280 — 770 Broadway mortgage loan 700,000 4.98% 07/27 33,320 — 29,226 PENN 11 mortgage loan 500,000 2.22% 03/24 17,471 — 26,587 Unsecured revolving credit facility 575,000 3.87% 08/27 27,738 — 24,457 Unsecured term loan (2) 800,000 4.04% (2) 24,001 — 21,024 100 West 33rd Street mortgage loan 480,000 5.06% 06/27 11,203 — 6,886 888 Seventh Avenue mortgage loan 200,000 (3) 4.76% 09/27 7,880 — 6,544 4 Union Square South mortgage loan 99,100 (4) 3.74% 01/25 3,916 — 4,050 Interest rate caps: 1290 Avenue of the Americas mortgage loan 950,000 (5) 11/25 66,456 — 7,590 One Park Avenue mortgage loan 525,000 (6) 03/25 10,870 — 5,472 Various mortgage loans 3,110 — 2,080 $ 242,379 $ 1,280 $ 183,804 ____________________ (1) Represents our 70.0% share of the $1.2 billion mortgage loan. In March 2023, we entered into the forward swap arrangement detailed above. (2) Represents the aggregate fair value of various interest rate swap arrangements to hedge interest payments on our unsecured term loan. In February 2023, we entered into a forward interest rate swap arrangement for $150,000 of the $800,000 unsecured term loan . The unsecured term loan, which matures in December 2027, is subject to various interest rate swap arrangements through August 2027, which are detailed below: Swapped Balance All-In Swapped Rate Unswapped Balance Through 10/23 $ 800,000 4.04% $ — 10/23 through 07/25 700,000 4.52% 100,000 07/25 through 10/26 550,000 4.35% 250,000 10/26 through 08/27 50,000 4.03% 750,000 (3) The remaining $67,000 amortizing mortgage loan balance bears interest at a floating rate of SOFR plus 1.80% (6.96% as of June 30, 2023). (4) The remaining $20,900 mortgage loan balance bears interest at a floating rate of SOFR plus 1.50% (6.66% as of June 30, 2023). (5) Current SOFR cap strike rate of 3.89%. In June 2023, we entered into a forward cap arrangement which is effective upon the November 2023 expiration of the current in-place cap and expires in November 2025. The forward cap has a SOFR strike rate of 1.00%. In connection with the arrangement, we made a $63,100 up-front payment, of which $18,930 is attributable to noncontrolling interests. See Note 9 - Debt for further information. (6) Current SOFR cap strike rate of 3.89%. In March 2023, we entered into a forward cap arrangement which is effective upon the March 2024 expiration of the current in-place cap and expires in March 2025. The forward cap has a SOFR strike rate of 3.89%. |
Schedule of Carrying Amounts and Fair Values of Financial Instruments | The table below summarizes the carrying amounts and fair value of these financial instruments. (Amounts in thousands) As of June 30, 2023 As of December 31, 2022 Carrying Fair Carrying Fair Cash equivalents $ 810,395 $ 810,000 $ 402,903 $ 403,000 Debt: Mortgages payable $ 5,761,815 $ 5,592,000 $ 5,877,615 $ 5,697,000 Senior unsecured notes 1,200,000 1,016,000 1,200,000 1,021,000 Unsecured term loan 800,000 800,000 800,000 800,000 Unsecured revolving credit facilities 575,000 575,000 575,000 575,000 Total $ 8,336,815 (1) $ 7,983,000 $ 8,452,615 (1) $ 8,093,000 ____________________ (1) Excludes $59,960 and $63,572 of deferred financing costs, net and other as of June 30, 2023 and December 31, 2022, respectively. |
Deferred Compensation Plan Assets | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation | |
Schedule of Changes in Fair Value of Plan Assets | The table below summarizes the changes in the fair value of deferred compensation plan assets that are classified as Level 3. (Amounts in thousands) For the Three Months Ended June 30, For the Six Months Ended June 30, 2023 2022 2023 2022 Beginning balance $ 40,627 $ 44,526 $ 38,916 $ 45,016 Purchases 202 2,104 845 2,947 Sales (2,372) (1,880) (2,878) (2,787) Realized and unrealized (losses) gains (758) (858) 355 (2,098) Other, net 954 263 1,415 1,077 Ending balance $ 38,653 $ 44,155 $ 38,653 $ 44,155 |
Loans Receivable | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation | |
Schedule of Fair Value Inputs Quantitative Information | Significant unobservable quantitative inputs in the table below were utilized in determining the fair value of these loans receivable. Unobservable Quantitative Input As of June 30, 2023 As of December 31, 2022 Discount rates 7.5% 7.5% Terminal capitalization rates 5.5% 5.5% |
Schedule of Changes In Fair Value of Loans Receivable | The table below summarizes the changes in fair value of loans receivable that are classified as Level 3. (Amounts in thousands) For the Three Months Ended June 30, For the Six Months Ended June 30, 2023 2022 2023 2022 Beginning balance $ 55,269 $ 50,848 $ 54,397 $ 50,182 Interest accrual 1,280 1,198 2,563 2,397 Paydowns — — (411) (533) Ending balance $ 56,549 $ 52,046 $ 56,549 $ 52,046 |
Real Estate Investments | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation | |
Schedule of Fair Value Inputs Quantitative Information | Significant unobservable quantitative inputs in the table below were utilized in determining the fair value of these real estate assets. As of December 31, 2022 Unobservable Quantitative Input Range Weighted Average Discount rates 7.50% - 8.00% 7.52% Terminal capitalization rates 4.75% - 5.50% 4.78% |
Interest and Other Investment_2
Interest and Other Investment Income, Net (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Interest and Other Income [Abstract] | |
Schedule Of Interest And Other Investment Income, Net | The following table sets forth the details of interest and other investment income, net: (Amounts in thousands) For the Three Months Ended June 30, For the Six Months Ended June 30, 2023 2022 2023 2022 Interest on cash and cash equivalents and restricted cash $ 12,593 $ 310 $ 18,267 $ 374 Amortization of discount on investments in U.S. Treasury bills 384 1,728 3,829 1,857 Interest on loans receivable 278 994 762 1,819 Other, net — 4 — 4 $ 13,255 $ 3,036 $ 22,858 $ 4,054 |
Interest and Debt Expense (Tabl
Interest and Debt Expense (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Interest and Debt Expense [Abstract] | |
Schedule of Interest And Debt Expense | The following table sets forth the details of interest and debt expense: (Amounts in thousands) For the Three Months Ended June 30, For the Six Months Ended June 30, 2023 2022 2023 2022 Interest expense $ 91,160 $ 60,742 $ 180,241 $ 111,543 Capitalized interest and debt expense (9,949) (3,701) (18,806) (7,221) Amortization of deferred financing costs 5,954 5,599 11,967 10,427 $ 87,165 $ 62,640 $ 173,402 $ 114,749 |
Income Per Share_Income Per C_2
Income Per Share/Income Per Class A Unit (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Earnings per share | |
Schedule Of Earnings Per Share Basic And Diluted | Vornado Realty Trust The following table presents the calculations of (i) basic income per common share which includes the weighted average number of common shares outstanding without regard to dilutive potential common shares and (ii) diluted income per common share which includes weighted average common shares outstanding and dilutive share equivalents. Unvested share-based payment awards that contain nonforfeitable rights to dividends, whether paid or unpaid, are accounted for as participating securities. Earnings are allocated to participating securities, which include restricted common shares, based on the two-class method. Our share-based payment awards, including employee stock options, LTIP Units, OPP Units, AO LTIP Units, Performance AO LTIP Units, and LTPP Units, are included in the calculation of diluted income per share using the treasury stock method if dilutive. Our convertible securities, including our Series A convertible preferred shares, Series G-1 through G-4 convertible preferred units and Series D-13 redeemable preferred units, are reflected in diluted income per share by application of the if-converted method if dilutive. (Amounts in thousands, except per share amounts) For the Three Months Ended June 30, For the Six Months Ended June 30, 2023 2022 2023 2022 Numerator: Net income attributable to Vornado $ 61,906 $ 65,947 $ 82,603 $ 107,954 Preferred share dividends (15,529) (15,529) (31,058) (31,058) Net income attributable to common shareholders 46,377 50,418 51,545 76,896 Earnings allocated to unvested participating securities (1) (5) (1) (10) Numerator for basic income per share 46,376 50,413 51,544 76,886 Impact of assumed conversion of dilutive convertible securities 377 (380) 700 (257) Numerator for diluted income per share $ 46,753 $ 50,033 $ 52,244 $ 76,629 Denominator: Denominator for basic income per share - weighted average shares 191,468 191,750 191,668 191,737 Effect of dilutive securities (1) : Share-based payment awards 32 261 23 289 Convertible securities 3,304 28 2,673 21 Denominator for diluted income per share - weighted average shares and assumed conversions 194,804 192,039 194,364 192,047 INCOME PER COMMON SHARE - BASIC: Net income per common share $ 0.24 $ 0.26 $ 0.27 $ 0.40 INCOME PER COMMON SHARE - DILUTED: Net income per common share $ 0.24 $ 0.26 $ 0.27 $ 0.40 _____________________________________ (1) The effect of dilutive securities excluded an aggregate of 14,883 and 15,572 weighted average common share equivalents for the three months ended June 30, 2023 and 2022, respectively, and 15,005 and 15,697 weighted average common share equivalents for the six months ended June 30, 2023 and 2022, respectively, as their effect was anti-dilutive. |
Vornado Realty L.P. | |
Earnings per share | |
Schedule Of Earnings Per Share Basic And Diluted | Vornado Realty L.P. The following table presents the calculations of (i) basic income per Class A unit which includes the weighted average number of Class A units outstanding without regard to dilutive potential Class A units and (ii) diluted income per Class A unit which includes the weighted average Class A units outstanding and dilutive Class A unit equivalents. Unvested share-based payment awards that contain non-forfeitable rights to dividends, whether paid or unpaid, are accounted for as participating securities. Earnings are allocated to participating securities, which include restricted Vornado common shares and our LTIP Units, based on the two-class method. Our other share-based payment awards, including Vornado stock options, OPP Units, AO LTIP Units, Performance AO LTIP Units and LTPP Units, are included in the calculation of diluted income per Class A unit using the treasury stock method if dilutive. Our convertible securities, including our Series A convertible preferred units, Series G-1 through G-4 convertible preferred units and Series D-13 redeemable preferred units, are reflected in diluted income per Class A unit by application of the if-converted method if dilutive. (Amounts in thousands, except per unit amounts) For the Three Months Ended June 30, For the Six Months Ended June 30, 2023 2022 2023 2022 Numerator: Net income attributable to Vornado Realty L.P. $ 65,514 $ 69,729 $ 86,640 $ 113,730 Preferred unit distributions (15,557) (15,557) (31,115) (31,115) Net income attributable to Class A unitholders 49,957 54,172 55,525 82,615 Earnings allocated to unvested participating securities (204) (582) (228) (1,221) Numerator for basic income per Class A unit 49,753 53,590 55,297 81,394 Impact of assumed conversion of dilutive convertible securities 377 (380) 700 (257) Numerator for diluted income per Class A unit $ 50,130 $ 53,210 $ 55,997 $ 81,137 Denominator: Denominator for basic income per Class A unit – weighted average units 205,411 205,259 205,606 205,200 Effect of dilutive securities (1) : Share-based payment awards 32 643 23 701 Convertible securities 3,304 28 2,673 21 Denominator for diluted income per Class A unit – weighted average units and assumed conversions 208,747 205,930 208,302 205,922 INCOME PER CLASS A UNIT - BASIC: Net income per Class A unit $ 0.24 $ 0.26 $ 0.27 $ 0.40 INCOME PER CLASS A UNIT - DILUTED: Net income per Class A unit $ 0.24 $ 0.26 $ 0.27 $ 0.39 ____________________ (1) The effect of dilutive securities excluded an aggregate of 940 and 1,681 weighted average Class A unit equivalents for the three months ended June 30, 2023 and 2022, respectively, and 720 and 1,822 weighted average Class A unit equivalents for the six months ended June 30, 2023 and 2022, respectively, as their effect was anti-dilutive. |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Segment Reporting [Abstract] | |
Schedule of Segment Information | Below is a summary of NOI at share and NOI at share - cash basis by segment for the three and six months ended June 30, 2023 and 2022. (Amounts in thousands) For the Three Months Ended June 30, 2023 Total New York Other Total revenues $ 472,359 $ 362,471 $ 109,888 Operating expenses (222,723) (176,410) (46,313) NOI - consolidated 249,636 186,061 63,575 Deduct: NOI attributable to noncontrolling interests in consolidated subsidiaries (18,742) (5,204) (13,538) Add: NOI from partially owned entities 70,745 67,509 3,236 NOI at share 301,639 248,366 53,273 Non-cash adjustments for straight-line rents, amortization of acquired below-market leases, net, and other (5,570) (6,797) 1,227 NOI at share - cash basis $ 296,069 $ 241,569 $ 54,500 (Amounts in thousands) For the Three Months Ended June 30, 2022 Total New York Other Total revenues $ 453,494 $ 364,162 $ 89,332 Operating expenses (222,309) (176,572) (45,737) NOI - consolidated 231,185 187,590 43,595 Deduct: NOI attributable to noncontrolling interests in consolidated subsidiaries (16,299) (10,707) (5,592) Add: NOI from partially owned entities 74,060 71,209 2,851 NOI at share 288,946 248,092 40,854 Non-cash adjustments for straight-line rents, amortization of acquired below-market leases, net, and other (4,275) (6,189) 1,914 NOI at share - cash basis $ 284,671 $ 241,903 $ 42,768 (Amounts in thousands) For the Six Months Ended June 30, 2023 Total New York Other Total revenues $ 918,282 $ 726,285 $ 191,997 Operating expenses (451,496) (364,731) (86,765) NOI - consolidated 466,786 361,554 105,232 Deduct: NOI attributable to noncontrolling interests in consolidated subsidiaries (30,506) (10,027) (20,479) Add: NOI from partially owned entities 138,842 132,833 6,009 NOI at share 575,122 484,360 90,762 Non-cash adjustments for straight-line rents, amortization of acquired below-market leases, net and other (518) (1,764) 1,246 NOI at share - cash basis $ 574,604 $ 482,596 $ 92,008 (Amounts in thousands) For the Six Months Ended June 30, 2022 Total New York Other Total revenues $ 895,624 $ 722,710 $ 172,914 Operating expenses (438,838) (354,107) (84,731) NOI - consolidated 456,786 368,603 88,183 Deduct: NOI attributable to noncontrolling interests in consolidated subsidiaries (36,334) (24,017) (12,317) Add: NOI from partially owned entities 152,752 147,173 5,579 NOI at share 573,204 491,759 81,445 Non-cash adjustments for straight-line rents, amortization of acquired below-market leases, net and other (7,405) (10,164) 2,759 NOI at share - cash basis $ 565,799 $ 481,595 $ 84,204 19. Segment Information - continued Below is a reconciliation of net income to NOI at share and NOI at share - cash basis for the three and six months ended June 30, 2023 and 2022. (Amounts in thousands) For the Three Months Ended June 30, For the Six Months Ended June 30, 2023 2022 2023 2022 Net income $ 62,733 $ 68,903 $ 73,931 $ 122,278 Depreciation and amortization expense 107,162 118,662 213,727 236,105 General and administrative expense 39,410 31,902 81,005 73,118 Transaction related costs and other 30 2,960 688 3,965 Income from partially owned entities (37,272) (25,720) (53,938) (59,434) Loss (income) from real estate fund investments 102 142 121 (5,532) Interest and other investment income, net (13,255) (3,036) (22,858) (4,054) Interest and debt expense 87,165 62,640 173,402 114,749 Net gains on disposition of wholly owned and partially owned assets (936) (28,832) (8,456) (35,384) Income tax expense 4,497 3,564 9,164 10,975 NOI from partially owned entities 70,745 74,060 138,842 152,752 NOI attributable to noncontrolling interests in consolidated subsidiaries (18,742) (16,299) (30,506) (36,334) NOI at share 301,639 288,946 575,122 573,204 Non-cash adjustments for straight-line rents, amortization of acquired below-market leases, net and other (5,570) (4,275) (518) (7,405) NOI at share - cash basis $ 296,069 $ 284,671 $ 574,604 $ 565,799 |
Organization (Details)
Organization (Details) | 6 Months Ended |
Jun. 30, 2023 | |
Operating Partnership | |
Organization [Line Items] | |
Common limited partnership interest in the Operating Partnership (percent) | 90.60% |
Recently Issued Accounting Li_3
Recently Issued Accounting Literature (Narrative) (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Long term debt | $ 2,561,717 | $ 2,560,025 |
Prime Rate | 731 Lexington Avenue | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Equity method ownership percentage | 32.40% | |
731 Lexington Avenue | Mortgage loan | Prime Rate | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Long term debt | $ 500,000 |
Revenue Recognition (Revenues b
Revenue Recognition (Revenues by Segment) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Disaggregation of Revenue [Line Items] | ||||
Lease income | $ 403,835 | $ 388,891 | $ 785,712 | $ 771,922 |
Total revenues | $ 472,359 | $ 453,494 | $ 918,282 | $ 895,624 |
Operating Lease, Lease Income, Statement of Income or Comprehensive Income [Extensible Enumeration] | Total revenues | Total revenues | Total revenues | Total revenues |
Loss contingency, damages awarded, value | $ 21,350 | $ 21,350 | ||
Noncontrolling Interest | ||||
Disaggregation of Revenue [Line Items] | ||||
Loss contingency, damages awarded, value | 6,405 | 6,405 | ||
New York | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 362,471 | $ 364,162 | 726,285 | $ 722,710 |
Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 109,888 | 89,332 | 191,997 | 172,914 |
Rental revenues | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 418,834 | 405,194 | 815,627 | 802,477 |
Rental revenues | New York | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 316,702 | 322,040 | 636,218 | 640,885 |
Rental revenues | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 102,132 | 83,154 | 179,409 | 161,592 |
Lease revenues | ||||
Disaggregation of Revenue [Line Items] | ||||
Lease income | 403,835 | 388,891 | 785,712 | 771,922 |
Lease revenues | New York | ||||
Disaggregation of Revenue [Line Items] | ||||
Lease income | 305,182 | 309,882 | 612,904 | 617,605 |
Lease revenues | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Lease income | 98,653 | 79,009 | 172,808 | 154,317 |
Property rentals | ||||
Disaggregation of Revenue [Line Items] | ||||
Lease income | 397,053 | 383,049 | 773,882 | 760,936 |
Property rentals | New York | ||||
Disaggregation of Revenue [Line Items] | ||||
Lease income | 305,182 | 309,882 | 612,904 | 617,605 |
Property rentals | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Lease income | 91,871 | 73,167 | 160,978 | 143,331 |
Trade shows | ||||
Disaggregation of Revenue [Line Items] | ||||
Lease income | 6,782 | 5,842 | 11,830 | 10,986 |
Trade shows | New York | ||||
Disaggregation of Revenue [Line Items] | ||||
Lease income | 0 | 0 | 0 | 0 |
Trade shows | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Lease income | 6,782 | 5,842 | 11,830 | 10,986 |
Tenant services | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 9,804 | 11,461 | 19,573 | 21,350 |
Tenant services | New York | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 7,325 | 8,133 | 14,907 | 15,544 |
Tenant services | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 2,479 | 3,328 | 4,666 | 5,806 |
Parking revenues | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 5,195 | 4,842 | 10,342 | 9,205 |
Parking revenues | New York | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 4,195 | 4,025 | 8,407 | 7,736 |
Parking revenues | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 1,000 | 817 | 1,935 | 1,469 |
Fee and other income | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 53,525 | 48,300 | 102,655 | 93,147 |
Total revenues | 53,525 | 48,300 | 102,655 | 93,147 |
Fee and other income | New York | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 45,769 | 42,122 | 90,067 | 81,825 |
Fee and other income | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 7,756 | 6,178 | 12,588 | 11,322 |
BMS cleaning fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 35,146 | 33,999 | 70,474 | 66,690 |
BMS cleaning fees | New York | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 37,754 | 36,206 | 75,432 | 70,917 |
BMS cleaning fees | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | (2,608) | (2,207) | (4,958) | (4,227) |
Management and leasing fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 3,658 | 2,866 | 6,707 | 5,635 |
Management and leasing fees | New York | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 3,761 | 3,011 | 6,934 | 5,978 |
Management and leasing fees | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | (103) | (145) | (227) | (343) |
Other income | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 14,721 | 11,435 | 25,474 | 20,822 |
Other income | New York | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 4,254 | 2,905 | 7,701 | 4,930 |
Other income | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 10,467 | $ 8,530 | $ 17,773 | $ 15,892 |
Revenue Recognition (Components
Revenue Recognition (Components of Lease Revenue) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Revenue from Contract with Customer [Abstract] | ||||
Fixed billings | $ 362,326 | $ 342,891 | $ 710,240 | $ 672,142 |
Variable billings | 37,216 | 31,225 | 75,155 | 64,199 |
Total contractual operating lease billings | 399,542 | 374,116 | 785,395 | 736,341 |
Adjustment for straight-line rents and amortization of acquired below-market leases and other, net | 4,293 | 15,276 | 317 | 36,082 |
Less: write-off of straight-line rent and tenant receivables deemed uncollectible | 0 | (501) | 0 | (501) |
Lease revenues | $ 403,835 | $ 388,891 | $ 785,712 | $ 771,922 |
Real Estate Fund Investments (N
Real Estate Fund Investments (Narrative) (Details) | 6 Months Ended | |
Jun. 30, 2023 USD ($) investment | Jun. 30, 2020 USD ($) | |
Real Estate Investments | ||
Investment Holdings | ||
Number of investments held by fund (investment) | investment | 1 | |
Aggregate fair value of real estate fund investments | $ 0 | |
Real estate fund investments below cost | 28,815,000 | |
Unfunded commitments of fund | 28,465,000 | |
Vornado Realty Trust | Real Estate Investments | ||
Investment Holdings | ||
Unfunded commitments of fund | $ 8,849,000 | |
Vornado Capital Partners Real Estate Fund | ||
Investment Holdings | ||
Equity method ownership percentage | 25% | |
Term of the fund, years | 8 years | |
Investment period for commitments of the Fund, years | 3 years | |
Crowne Plaza Times Square Hotel Joint Venture | ||
Investment Holdings | ||
Default amount | $ 274,355,000 | |
Crowne Plaza Times Square Hotel Joint Venture | Joint Venture | ||
Investment Holdings | ||
Equity method ownership percentage | 57.10% | |
Crowne Plaza Times Square Hotel Joint Venture | Joint Venture | Crowne Plaza Time Square Hotel | ||
Investment Holdings | ||
Ownership percentage by noncontrolling owners | 24.30% | |
Noncontrolling interest, ownership percentage by parent | 32.80% |
Real Estate Fund Investments (I
Real Estate Fund Investments (Income from the Fund and the Co-Investment) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Investment Holdings | ||||
(Loss) income from real estate fund investments | $ (102) | $ (142) | $ (121) | $ 5,532 |
Less net loss (income) attributable to noncontrolling interests in consolidated subsidiaries | 2,781 | 826 | 12,709 | (8,548) |
Real Estate Investments | ||||
Investment Holdings | ||||
Net investment (loss) income | (102) | 6,658 | (121) | 6,660 |
Previously recorded unrealized loss on exited investments | 0 | 53,724 | 247,575 | 59,396 |
Realized loss on exited investments | 0 | (53,724) | (247,575) | (53,724) |
Net unrealized loss on held investments | 0 | (6,800) | 0 | (6,800) |
(Loss) income from real estate fund investments | (102) | (142) | (121) | 5,532 |
Less net loss (income) attributable to noncontrolling interests in consolidated subsidiaries | 143 | 365 | 382 | (3,599) |
Income from real estate fund investments net of noncontrolling interests in consolidated subsidiaries | $ 41 | $ 223 | $ 261 | $ 1,933 |
Real Estate Fund Investments (C
Real Estate Fund Investments (Changes in the Fair Value of Fund and Joint Venture) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Dispositions | $ 0 | $ (5,672) | $ 0 | $ (5,672) |
Real Estate Investments | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Beginning balance | 0 | 13,402 | 0 | 7,730 |
Previously recorded unrealized loss on exited investments | 0 | 53,724 | 247,575 | 59,396 |
Realized loss on exited investments | 0 | (53,724) | (247,575) | (53,724) |
Net unrealized loss on held investments | 0 | (6,800) | 0 | (6,800) |
Ending balance | $ 0 | $ 930 | $ 0 | $ 930 |
Investments in Partially Owne_3
Investments in Partially Owned Entities (Fifth Avenue and Times Square JV) (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Apr. 19, 2024 | Jun. 14, 2023 USD ($) extension_option | Jun. 30, 2023 USD ($) | Jun. 30, 2023 USD ($) | Dec. 31, 2022 USD ($) | |
Maturing in June 2025 | Junior Notes | |||||
Schedule Of Equity Method Investments | |||||
Restructured loan, number of extension options | extension_option | 2 | ||||
Restructured loan, extension option, term (in years) | 1 year | ||||
Maturing in March 2028 | Junior Notes | |||||
Schedule Of Equity Method Investments | |||||
Restructured loan, number of extension options | extension_option | 1 | ||||
Restructured loan, extension option, term (in years) | 9 months | ||||
Fifth Avenue and Times Square JV | |||||
Schedule Of Equity Method Investments | |||||
Equity method ownership percentage | 51.50% | 51.50% | |||
Real estate basis difference, carrying amount | $ 853,777 | $ 853,777 | |||
Loan amount after payment | $ 421,000 | ||||
Restructured loan amount | $ 355,000 | ||||
Fifth Avenue and Times Square JV | Senior Notes | |||||
Schedule Of Equity Method Investments | |||||
Restructured loan amount | $ 325,000 | ||||
Fifth Avenue and Times Square JV | Junior Notes | |||||
Schedule Of Equity Method Investments | |||||
Debt instrument, interest rate, stated percentage (percent) | 4% | ||||
Restructured loan amount | $ 30,000 | ||||
Fifth Avenue and Times Square JV | SOFR | Senior Notes | |||||
Schedule Of Equity Method Investments | |||||
Basis spread on variable rate (percent) | 2% | ||||
Fifth Avenue and Times Square JV | Joint Venture | |||||
Schedule Of Equity Method Investments | |||||
Aggregate of preferred equity interests | $ 1,828,000 | $ 1,828,000 | |||
Fifth Avenue and Times Square JV | Joint Venture | Percentage For First Five Years | |||||
Schedule Of Equity Method Investments | |||||
Debt instrument, interest rate, stated percentage (percent) | 4.25% | 4.25% | |||
Fifth Avenue and Times Square JV | Joint Venture | Percentage After Fifth Anniversary | |||||
Schedule Of Equity Method Investments | |||||
Debt instrument, interest rate, stated percentage (percent) | 4.75% | 4.75% | |||
Debt term (in years) | 5 years | 5 years | |||
Fifth Avenue and Times Square JV | Joint Venture | Investors | |||||
Schedule Of Equity Method Investments | |||||
Equity method ownership percentage | 48.50% | 48.50% | |||
Equity method effective ownership percentage | 47.20% | 47.20% | |||
Fifth Avenue and Times Square JV | Vornado Realty Trust | |||||
Schedule Of Equity Method Investments | |||||
Equity method ownership percentage | 51.50% | 51.50% | |||
Equity method effective ownership percentage | 51% | 51% | |||
Fifth Avenue and Times Square JV | Vornado Realty Trust | VRLP | Forecast | |||||
Schedule Of Equity Method Investments | |||||
Transfer threshold (percent) | 50% | ||||
Fifth Avenue and Times Square JV | Vornado Realty Trust | Investors | Forecast | |||||
Schedule Of Equity Method Investments | |||||
Transfer threshold (percent) | 50% |
Investments in Partially Owne_4
Investments in Partially Owned Entities (Alexander's Inc.) (Details) - Alexander's - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | |||
May 19, 2023 | Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Schedule Of Equity Method Investments | |||||
Ownership common shares, investee (in shares) | 1,654,068 | 1,654,068 | |||
Equity method ownership percentage | 32.40% | 32.40% | |||
Equity method investment, agreement to sell, amount | $ 71,060 | ||||
Net gain (loss) on sale of real estate | 16,396 | $ 16,396 | $ 0 | $ 16,396 | $ 0 |
Proceeds from commissions received | 711 | ||||
Commissions paid to third-party broker | $ 250 | ||||
Closing share price (in dollars per share) | $ 183.86 | $ 183.86 | |||
Equity method investment fair value | $ 304,117 | $ 304,117 | |||
Excess of investee's fair value over carrying amount | 207,829 | 207,829 | |||
Excess of investee's carrying amount over equity in net assets | $ 29,658 | $ 29,658 |
Investments in Partially Owne_5
Investments in Partially Owned Entities (512 West 22nd Street) (Details) $ in Thousands | Jun. 28, 2023 USD ($) ft² | Jun. 30, 2023 USD ($) | Dec. 31, 2022 USD ($) |
Schedule Of Equity Method Investments | |||
Loans payable | $ 5,715,138 | $ 5,829,018 | |
512 West 22nd Street | Maturing in June 2025 | |||
Schedule Of Equity Method Investments | |||
Extension term (in years) | 1 year | ||
512 West 22nd Street | Maturing in June 2023 | |||
Schedule Of Equity Method Investments | |||
Debt term (in years) | 2 years | ||
Cap strike rate (as percent) | 4.50% | ||
512 West 22nd Street | Office Building | Maturing in June 2025 | |||
Schedule Of Equity Method Investments | |||
Loans payable | $ 129,250 | ||
Square footage of real estate property (in sqft) | ft² | 173,000 | ||
512 West 22nd Street | Office Building | Maturing in June 2025 | Year One Secured Overnight Financing Rate (SOFR) | |||
Schedule Of Equity Method Investments | |||
Basis spread on variable rate (percent) | 2% | ||
512 West 22nd Street | Office Building | Maturing in June 2025 | Year Two Secured Overnight Financing Rate (SOFR) | |||
Schedule Of Equity Method Investments | |||
Basis spread on variable rate (percent) | 2.35% | ||
512 West 22nd Street | Office Building | Maturing in June 2023 | |||
Schedule Of Equity Method Investments | |||
Loans payable | $ 137,124 | ||
512 West 22nd Street | Office Building | Maturing in June 2023 | LIBOR | |||
Schedule Of Equity Method Investments | |||
Basis spread on variable rate (percent) | 1.85% | ||
512 West 22nd Street | Joint Venture | |||
Schedule Of Equity Method Investments | |||
Equity method ownership percentage | 55% |
Investments in Partially Owne_6
Investments in Partially Owned Entities (Schedule of Investments) (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Schedule Of Equity Method Investments | ||
Carrying amount of investments in partially owned entities | $ 2,641,297 | $ 2,665,073 |
Other liabilities | ||
Schedule Of Equity Method Investments | ||
Carrying amount of investments in partially owned entities | $ (78,929) | (81,528) |
Fifth Avenue and Times Square JV | ||
Schedule Of Equity Method Investments | ||
Equity method ownership percentage | 51.50% | |
Carrying amount of investments in partially owned entities | $ 2,256,952 | 2,272,320 |
Partially owned office buildings/land | ||
Schedule Of Equity Method Investments | ||
Carrying amount of investments in partially owned entities | $ 173,950 | 182,180 |
Alexander's | ||
Schedule Of Equity Method Investments | ||
Equity method ownership percentage | 32.40% | |
Carrying amount of investments in partially owned entities | $ 96,288 | 87,796 |
Other investments | ||
Schedule Of Equity Method Investments | ||
Carrying amount of investments in partially owned entities | $ 114,107 | 122,777 |
7 West 34th Street | ||
Schedule Of Equity Method Investments | ||
Equity method ownership percentage | 53% | |
7 West 34th Street | Other liabilities | ||
Schedule Of Equity Method Investments | ||
Carrying amount of investments in partially owned entities | $ (67,729) | (65,522) |
85 Tenth Avenue | ||
Schedule Of Equity Method Investments | ||
Equity method ownership percentage | 49.90% | |
85 Tenth Avenue | Other liabilities | ||
Schedule Of Equity Method Investments | ||
Carrying amount of investments in partially owned entities | $ (11,200) | $ (16,006) |
Investments in Partially Owne_7
Investments in Partially Owned Entities (Schedule of Income (Loss)) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
May 19, 2023 | Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Schedule Of Equity Method Investments | |||||
Equity in net income | $ 53,938 | $ 59,434 | |||
Our share of net income (loss) | $ 37,272 | $ 25,720 | $ 53,938 | 59,434 | |
Fifth Avenue and Times Square JV | |||||
Schedule Of Equity Method Investments | |||||
Equity method ownership percentage | 51.50% | 51.50% | |||
Equity in net income | $ 5,941 | 13,665 | $ 16,140 | 29,974 | |
Return on preferred equity, net of our share of the expense | 9,329 | 9,329 | 18,555 | 18,555 | |
Our share of net income (loss) | 15,270 | 22,994 | 34,695 | 48,529 | |
Default accrual interest amount | $ 5,120 | $ 5,120 | |||
Alexander's | |||||
Schedule Of Equity Method Investments | |||||
Equity method ownership percentage | 32.40% | 32.40% | |||
Net gain on sale of land | $ 16,396 | $ 16,396 | 0 | $ 16,396 | 0 |
Equity in net income | 3,318 | 4,824 | 6,889 | 9,495 | |
Management, leasing and development fees | 1,699 | 1,162 | 2,872 | 2,182 | |
Our share of net income (loss) | 21,413 | 5,986 | 26,157 | 11,677 | |
Partially owned office buildings/land | |||||
Schedule Of Equity Method Investments | |||||
Our share of net income (loss) | (254) | (4,980) | (9,217) | (3,688) | |
Other investments | |||||
Schedule Of Equity Method Investments | |||||
Our share of net income (loss) | $ 843 | $ 1,720 | $ 2,303 | $ 2,916 |
350 Park Avenue (Details)
350 Park Avenue (Details) ft² in Thousands, $ in Thousands | 6 Months Ended | |||
Jun. 20, 2023 USD ($) | Jan. 24, 2023 USD ($) ft² | Jun. 30, 2023 USD ($) | Jun. 30, 2022 USD ($) | |
Real Estate [Line Items] | ||||
Acquisitions of real estate and other | $ 100,126 | $ 70,046 | ||
Citadel Enterprise Americas LLC | New York City Metropolitan Area | ||||
Real Estate [Line Items] | ||||
Square footage of real estate property (in sqft) | ft² | 850 | |||
Lease, term (in years) | 15 years | |||
KG, Vornado and Rudin Management Joint Venture | ||||
Real Estate [Line Items] | ||||
Equity method ownership percentage | 40% | |||
KG, Vornado and Rudin Management Joint Venture | KG | Preferred Stock | ||||
Real Estate [Line Items] | ||||
Aggregate of preferred equity interests | $ 250,000 | |||
KG, Vornado and Rudin Management Joint Venture | Vornado | ||||
Real Estate [Line Items] | ||||
Equity method ownership percentage | 36% | |||
KG, Vornado and Rudin Management Joint Venture | Rudin | ||||
Real Estate [Line Items] | ||||
Equity method ownership percentage | 4% | |||
KG | ||||
Real Estate [Line Items] | ||||
Equity method ownership percentage | 60% | |||
The Site | ||||
Real Estate [Line Items] | ||||
Real estate basis difference, carrying amount | $ 1,200,000 | |||
The Site | Vornado | ||||
Real Estate [Line Items] | ||||
Real estate basis difference, carrying amount | 900,000 | |||
The Site | Rudin | ||||
Real Estate [Line Items] | ||||
Real estate basis difference, carrying amount | $ 300,000 | |||
The Site | KG, Vornado and Rudin Management Joint Venture | ||||
Real Estate [Line Items] | ||||
Square footage of real estate property (in sqft) | ft² | 1,700 | |||
Purchase option | $ 1,400,000 | |||
The Site | KG, Vornado and Rudin Management Joint Venture | KG | ||||
Real Estate [Line Items] | ||||
Option to acquire interest in joint venture, Percentage | 60% | |||
The Site | KG, Vornado and Rudin Management Joint Venture | Vornado | ||||
Real Estate [Line Items] | ||||
Purchase option | $ 1,085,000 | |||
The Site | KG, Vornado and Rudin Management Joint Venture | Rudin | ||||
Real Estate [Line Items] | ||||
Purchase option | $ 315,000 | |||
Citadel Enterprise Americas LLC | 350 Park Avenue Office Building | ||||
Real Estate [Line Items] | ||||
Square footage of real estate property (in sqft) | ft² | 585 | |||
Operating lease, term of contract (in years) | 10 years | |||
Initial annual net rent | $ 36,000 | |||
Citadel Enterprise Americas LLC | 40 East 52nd Street | ||||
Real Estate [Line Items] | ||||
Square footage of real estate property (in sqft) | ft² | 390 | |||
Rudin Management Co, Inc. | Thirty Nine East 51st Street | KG, Vornado and Rudin Management Joint Venture | ||||
Real Estate [Line Items] | ||||
Acquisitions of real estate and other | $ 40,000 | |||
Joint venture, percent funded | 50% | |||
Vornado | Thirty Nine East 51st Street | KG, Vornado and Rudin Management Joint Venture | ||||
Real Estate [Line Items] | ||||
Joint venture, percent funded | 50% | |||
KG | The Site | ||||
Real Estate [Line Items] | ||||
Purchase option | $ 1,200,000 | |||
Put option closing period (in years) | 10 years | |||
Lease termination payment | $ 200,000 | |||
KG | The Site | Vornado | ||||
Real Estate [Line Items] | ||||
Purchase option | 900,000 | |||
KG | The Site | Rudin | ||||
Real Estate [Line Items] | ||||
Purchase option | $ 300,000 |
Identified Intangible Assets _3
Identified Intangible Assets and Liabilities (Schedule of Identified Intangible Assets and Intangible Liabilities) (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | ||
Gross amount | $ 237,777 | $ 237,777 |
Accumulated amortization | (103,094) | (98,139) |
Total, net | 134,683 | 139,638 |
Identified intangible liabilities (included in deferred revenue): | ||
Gross amount | 244,396 | 244,396 |
Accumulated amortization | (212,300) | (208,592) |
Total, net | $ 32,096 | $ 35,804 |
Identified Intangible Assets _4
Identified Intangible Assets and Liabilities (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Below Market Leases Net Of Above Market Leases | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Amortization of intangible assets | $ 1,360 | $ 1,487 | $ 2,727 | $ 2,404 |
Other Identified Intangible Assets | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Amortization of intangible assets | $ 1,985 | $ 2,417 | $ 3,972 | $ (6,542) |
Identified Intangible Assets _5
Identified Intangible Assets and Liabilities (Schedule of Future Amortization Expense of Intangible Assets) (Details) $ in Thousands | Jun. 30, 2023 USD ($) |
Below Market Leases Net Of Above Market Leases | |
Finite-Lived Intangible Assets [Line Items] | |
2024 | $ 2,352 |
2025 | 941 |
2026 | 299 |
2027 | 148 |
2028 | 43 |
Other Identified Intangible Assets | |
Finite-Lived Intangible Assets [Line Items] | |
2024 | 7,128 |
2025 | 6,078 |
2026 | 5,884 |
2027 | 5,449 |
2028 | $ 4,290 |
Debt (Narrative) (Details)
Debt (Narrative) (Details) - USD ($) $ in Thousands | Jun. 29, 2023 | Jun. 30, 2023 | Jan. 09, 2023 |
SOFR | |||
Debt Instrument | |||
Rate (as percent) | 1% | ||
SOFR | 1290 Avenue of the Americas mortgage loan | Interest Rate Cap | Designated as Hedging Instrument | |||
Debt Instrument | |||
Cap strike rate (as percent) | 1% | ||
SOFR | 1290 Avenue of Americas mortgage loan Expiring November 2025 | Interest Rate Cap | Designated as Hedging Instrument | |||
Debt Instrument | |||
Cap strike rate (as percent) | 3.89% | ||
1290 Avenue of the Americas | |||
Debt Instrument | |||
Debt instrument, amount | $ 950,000 | ||
Cap term (years) | 2 years | ||
Controlling interest, percentage owned (in percent) | 70% | ||
Payment of premium connection with the purchase of cap arrangement | $ 63,100 | ||
1290 Avenue of the Americas | SOFR | |||
Debt Instrument | |||
Rate (as percent) | 1% | ||
Derivative, basis spread on variable rate (as percent) | 1.62% | ||
1290 Avenue of the Americas | SOFR | 1290 Avenue of Americas mortgage loan Expiring November 2025 | Interest Rate Cap | Designated as Hedging Instrument | |||
Debt Instrument | |||
Cap strike rate (as percent) | 3.89% | ||
Participating Mortgages | One Five Zero West 34th Street Loan | |||
Debt Instrument | |||
Mortgage loan | $ 105,000 | ||
Debt instrument, amount | 205,000 | ||
Participation interest | 105,000 | ||
Remaining mortgage loan | $ 100,000 | ||
Participating Mortgages | One Five Zero West 34th Street Loan | SOFR | |||
Debt Instrument | |||
Rate (as percent) | 1.86% | ||
Participating Mortgages | One Five Zero West 34th Street Loan | SOFR | Maximum | |||
Debt Instrument | |||
Rate (as percent) | 4.10% |
Debt (Schedule of Debt) (Detail
Debt (Schedule of Debt) (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2023 | Dec. 31, 2022 | |
Debt Instrument | ||
Deferred financing costs, net and other | $ (59,960) | $ (63,572) |
Total, net | 5,715,138 | 5,829,018 |
Long term debt | $ 2,561,717 | 2,560,025 |
Mortgages Payable: | ||
Debt Instrument | ||
Interest rate, end of period (percent) | 4.47% | |
Long-term debt, gross | $ 5,761,815 | 5,877,615 |
Deferred financing costs, net and other | (46,677) | (48,597) |
Total, net | $ 5,715,138 | 5,829,018 |
Mortgages Payable: | Fixed rate | ||
Debt Instrument | ||
Interest rate, end of period (percent) | 3.63% | |
Long-term debt, gross | $ 3,569,100 | 3,570,000 |
Mortgages Payable: | Variable rate | ||
Debt Instrument | ||
Interest rate, end of period (percent) | 5.83% | |
Long-term debt, gross | $ 2,192,715 | 2,307,615 |
Mortgages Payable: | Variable rate | Interest Rate Cap | ||
Debt Instrument | ||
Derivative, notional amount | $ 2,009,119 | |
Cap strike rate (as percent) | 4.18% | |
Derivative, average remaining maturity (in months) | 10 months | |
Unsecured Debt: | ||
Debt Instrument | ||
Interest rate, end of period (percent) | 3.02% | |
Long-term debt, gross | $ 1,200,000 | 1,200,000 |
Deferred financing costs, net and other | (7,147) | (8,168) |
Long term debt | $ 1,192,853 | 1,191,832 |
Unsecured term loan | ||
Debt Instrument | ||
Interest rate, end of period (percent) | 4.04% | |
Long-term debt, gross | $ 800,000 | 800,000 |
Deferred financing costs, net and other | (6,136) | (6,807) |
Long term debt | $ 793,864 | 793,193 |
Unsecured revolving credit facilities | ||
Debt Instrument | ||
Interest rate, end of period (percent) | 3.87% | |
Long term debt | $ 575,000 | $ 575,000 |
Redeemable Noncontrolling Int_3
Redeemable Noncontrolling Interests (Activity of Redeemable Noncontrolling Interests) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Redeemable Noncontrolling Interests Rollforward | ||||
Beginning balance | $ 436,732 | |||
Net income (loss) | $ 3,608 | $ 3,782 | 4,037 | $ 5,776 |
Other comprehensive income (loss) | 4,472 | 1,611 | (1,608) | 6,745 |
Ending balance | 480,296 | 480,296 | ||
Partnership Interest | ||||
Redeemable Noncontrolling Interests Rollforward | ||||
Beginning balance | 351,743 | 649,758 | 348,692 | 590,975 |
Net income (loss) | 3,608 | 3,782 | 4,037 | 5,776 |
Other comprehensive income (loss) | 4,472 | 1,611 | (1,608) | 6,745 |
Distributions | (28) | (7,577) | (5,629) | (15,161) |
Other, net | 12,582 | 5,721 | 3,229 | 19,026 |
Ending balance | 410,276 | 412,022 | 410,276 | 412,022 |
Partnership Interest | Class A Unit | ||||
Redeemable Noncontrolling Interests Rollforward | ||||
Redemption of Class A units for Vornado common shares, at redemption value | (5,371) | (860) | (5,558) | (1,577) |
Redeemable Class A unit measurement adjustment | 43,270 | (240,413) | 67,113 | (193,762) |
Subsidiary | ||||
Redeemable Noncontrolling Interests Rollforward | ||||
Beginning balance | 78,796 | 97,403 | 88,040 | 97,708 |
Net income (loss) | (8,776) | (3,416) | (18,020) | (3,721) |
Ending balance | $ 70,020 | $ 93,987 | $ 70,020 | $ 93,987 |
Redeemable Noncontrolling Int_4
Redeemable Noncontrolling Interests (Narrative) (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 | Dec. 31, 2020 |
Farley Office and Retail | Joint Venture | |||
Redeemable Noncontrolling Interest | |||
Equity method ownership percentage | 95% | ||
Capital contributions | $ 92,400 | $ 92,400 | |
Cumulative Redeemable Preferred Unit | |||
Redeemable Noncontrolling Interest | |||
Fair value of series G-1 through G-4 convertible preferred units and series D-13 cumulative redeemable preferred units | 49,383 | $ 49,383 | |
Partnership Interest | |||
Redeemable Noncontrolling Interest | |||
Redemption value of redeemable class A units | 406,741 | 345,157 | |
Partnership Interest | Class A Units | |||
Redeemable Noncontrolling Interest | |||
Redemption value of redeemable class A units | $ 308,823 | $ 300,015 |
Shareholders' Equity_Partners_3
Shareholders' Equity/Partners' Capital (Schedule of Dividends) (Details) - $ / shares | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Class of Stock [Line Items] | |||||
Common shares of beneficial interest: authorized shares (shares) | 250,000,000 | 250,000,000 | 250,000,000 | ||
Common shares, dividends (in dollars per share) | $ 0.53 | $ 0.375 | $ 1.06 | ||
Preferred shares of beneficial interest: authorized shares (shares) | 110,000,000 | 110,000,000 | 110,000,000 | ||
Common Class A | |||||
Class of Stock [Line Items] | |||||
Common shares of beneficial interest: authorized shares (shares) | 250,000,000 | 250,000,000 | 250,000,000 | 250,000,000 | |
Common shares, dividends (in dollars per share) | $ 0 | $ 0.53 | $ 0.375 | $ 1.06 | |
Series A Preferred Stock | Convertible Preferred Stock | |||||
Class of Stock [Line Items] | |||||
Preferred stock, dividend rate, percentage (percent) | 6.50% | 6.50% | 6.50% | 6.50% | |
Preferred shares of beneficial interest: authorized shares (shares) | 12,902 | 12,902 | 12,902 | 12,902 | |
Preferred stock, dividend rate, per-dollar-amount (in dollars per share) | $ 0.8125 | $ 0.8125 | $ 1.6250 | $ 1.6250 | |
Preferred stock, redemption price per share (in common shares/class A units per share/unit) | 1.9531 | 1.9531 | 1.9531 | 1.9531 | |
Series A Preferred Stock | Convertible Preferred Stock | Class A Unit | |||||
Class of Stock [Line Items] | |||||
Preferred stock, redemption price per share (in common shares/class A units per share/unit) | $ 1.9531 | $ 1.9531 | $ 1.9531 | $ 1.9531 | |
Series L Preferred Stock | Redeemable Preferred Stock | |||||
Class of Stock [Line Items] | |||||
Preferred stock, dividend rate, percentage (percent) | 5.40% | 5.40% | 5.40% | 5.40% | |
Preferred shares of beneficial interest: authorized shares (shares) | 13,800,000 | 13,800,000 | 13,800,000 | 13,800,000 | |
Preferred stock, dividend rate, per-dollar-amount (in dollars per share) | $ 0.3375 | $ 0.3375 | $ 0.6750 | $ 0.6750 | |
Preferred stock, liquidation preference per share (in dollars per share/unit) | $ 25 | $ 25 | $ 25 | $ 25 | |
Series M Preferred Stock | Redeemable Preferred Stock | |||||
Class of Stock [Line Items] | |||||
Preferred stock, dividend rate, percentage (percent) | 5.25% | 5.25% | 5.25% | 5.25% | |
Preferred shares of beneficial interest: authorized shares (shares) | 13,800,000 | 13,800,000 | 13,800,000 | 13,800,000 | |
Preferred stock, dividend rate, per-dollar-amount (in dollars per share) | $ 0.3281 | $ 0.3281 | $ 0.6562 | $ 0.6562 | |
Preferred stock, liquidation preference per share (in dollars per share/unit) | $ 25 | $ 25 | $ 25 | $ 25 | |
Series N Preferred Stock | Redeemable Preferred Stock | |||||
Class of Stock [Line Items] | |||||
Preferred stock, dividend rate, percentage (percent) | 5.25% | 5.25% | 5.25% | 5.25% | |
Preferred shares of beneficial interest: authorized shares (shares) | 12,000,000 | 12,000,000 | 12,000,000 | 12,000,000 | |
Preferred stock, dividend rate, per-dollar-amount (in dollars per share) | $ 0.3281 | $ 0.3281 | $ 0.6562 | $ 0.6562 | |
Preferred stock, liquidation preference per share (in dollars per share/unit) | $ 25 | $ 25 | $ 25 | $ 25 | |
Series O Preferred Stock | Redeemable Preferred Stock | |||||
Class of Stock [Line Items] | |||||
Preferred stock, dividend rate, percentage (percent) | 4.45% | 4.45% | 4.45% | 4.45% | |
Preferred shares of beneficial interest: authorized shares (shares) | 12,000,000 | 12,000,000 | 12,000,000 | 12,000,000 | |
Preferred stock, dividend rate, per-dollar-amount (in dollars per share) | $ 0.2781 | $ 0.2781 | $ 0.5562 | $ 0.5562 | |
Preferred stock, liquidation preference per share (in dollars per share/unit) | $ 25 | $ 25 | $ 25 | $ 25 |
Shareholders' Equity_Partners_4
Shareholders' Equity/Partners' Capital (Narrative) (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2023 | Apr. 26, 2023 | |
Equity, Class of Treasury Stock [Line Items] | |||
Stock repurchase program, authorized amount (up to) | $ 200,000,000 | ||
Common shares outstanding ratio to class A units ratio (percent) | 100% | ||
Stock repurchased during period, value | $ 23,250,000 | $ 23,250,000 | |
Common Class A | |||
Equity, Class of Treasury Stock [Line Items] | |||
Stock repurchased during period, value | $ 23,216,000 | $ 23,216,000 | |
Common Shares | |||
Equity, Class of Treasury Stock [Line Items] | |||
Shares repurchase program (in shares) | 1,722,295 | 1,722,295 | |
Stock repurchased during period, value | $ 69,000 | $ 69,000 | |
Average price per share (in dollars per share) | $ 13.48 | $ 13.48 |
Variable Interest Entities ("_2
Variable Interest Entities ("VIEs") (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Variable Interest Entities | ||
Assets | $ 16,437,839 | $ 16,493,375 |
Total liabilities | 9,963,013 | 9,980,263 |
Variable Interest Entity, Not Primary Beneficiary | ||
Variable Interest Entities | ||
Assets | 60,813 | 68,223 |
Variable Interest Entity, Primary Beneficiary | ||
Variable Interest Entities | ||
Assets | 5,097,432 | 4,423,995 |
Total liabilities | $ 2,809,851 | $ 2,345,726 |
Fair Value Measurements (Financ
Fair Value Measurements (Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis) (Details) - USD ($) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Financial Assets and Liabilities Measured at Fair Value on a Recurring and Nonrecurring Basis | |||
Proceeds from maturities of U.S. Treasury bills | $ 468,598 | $ 299,668 | |
US Treasury Bill Securities | |||
Financial Assets and Liabilities Measured at Fair Value on a Recurring and Nonrecurring Basis | |||
Proceeds from maturities of U.S. Treasury bills | 477,000 | ||
Recurring | |||
Financial Assets and Liabilities Measured at Fair Value on a Recurring and Nonrecurring Basis | |||
Deferred compensation plan assets (included in restricted cash and other assets) | 99,050 | $ 96,322 | |
Loans receivable (included in investments in partially owned entities and in other assets) | 56,549 | 54,397 | |
Interest rate swaps and caps (included in other assets) | 242,379 | 183,804 | |
Total assets | 397,978 | 806,485 | |
Mandatorily redeemable instruments (included in other liabilities) | 49,383 | 49,383 | |
Interest rate swaps (included in other liabilities) | 1,280 | ||
Total liabilities | 50,663 | ||
Recurring | US Treasury Bill Securities | |||
Financial Assets and Liabilities Measured at Fair Value on a Recurring and Nonrecurring Basis | |||
Investments in U.S. Treasury bills | 471,962 | ||
Recurring | Level 1 | |||
Financial Assets and Liabilities Measured at Fair Value on a Recurring and Nonrecurring Basis | |||
Deferred compensation plan assets (included in restricted cash and other assets) | 60,397 | 57,406 | |
Loans receivable (included in investments in partially owned entities and in other assets) | 0 | 0 | |
Interest rate swaps and caps (included in other assets) | 0 | 0 | |
Total assets | 60,397 | 529,368 | |
Mandatorily redeemable instruments (included in other liabilities) | 49,383 | 49,383 | |
Interest rate swaps (included in other liabilities) | 0 | ||
Total liabilities | 49,383 | ||
Recurring | Level 1 | US Treasury Bill Securities | |||
Financial Assets and Liabilities Measured at Fair Value on a Recurring and Nonrecurring Basis | |||
Investments in U.S. Treasury bills | 471,962 | ||
Recurring | Level 2 | |||
Financial Assets and Liabilities Measured at Fair Value on a Recurring and Nonrecurring Basis | |||
Deferred compensation plan assets (included in restricted cash and other assets) | 0 | 0 | |
Loans receivable (included in investments in partially owned entities and in other assets) | 0 | 0 | |
Interest rate swaps and caps (included in other assets) | 242,379 | 183,804 | |
Total assets | 242,379 | 183,804 | |
Mandatorily redeemable instruments (included in other liabilities) | 0 | 0 | |
Interest rate swaps (included in other liabilities) | 1,280 | ||
Total liabilities | 1,280 | ||
Recurring | Level 2 | US Treasury Bill Securities | |||
Financial Assets and Liabilities Measured at Fair Value on a Recurring and Nonrecurring Basis | |||
Investments in U.S. Treasury bills | 0 | ||
Recurring | Level 3 | |||
Financial Assets and Liabilities Measured at Fair Value on a Recurring and Nonrecurring Basis | |||
Deferred compensation plan assets (included in restricted cash and other assets) | 38,653 | 38,916 | |
Loans receivable (included in investments in partially owned entities and in other assets) | 56,549 | 54,397 | |
Interest rate swaps and caps (included in other assets) | 0 | 0 | |
Total assets | 95,202 | 93,313 | |
Mandatorily redeemable instruments (included in other liabilities) | 0 | 0 | |
Interest rate swaps (included in other liabilities) | 0 | ||
Total liabilities | 0 | ||
Recurring | Level 3 | US Treasury Bill Securities | |||
Financial Assets and Liabilities Measured at Fair Value on a Recurring and Nonrecurring Basis | |||
Investments in U.S. Treasury bills | 0 | ||
Restricted Cash | Recurring | |||
Financial Assets and Liabilities Measured at Fair Value on a Recurring and Nonrecurring Basis | |||
Deferred compensation plan assets (included in restricted cash and other assets) | 30,384 | 7,763 | |
Other Assets | Recurring | |||
Financial Assets and Liabilities Measured at Fair Value on a Recurring and Nonrecurring Basis | |||
Deferred compensation plan assets (included in restricted cash and other assets) | 68,666 | 88,559 | |
Loans receivable (included in investments in partially owned entities and in other assets) | 4,455 | 4,306 | |
Investments in Partially Owned Properties | Recurring | |||
Financial Assets and Liabilities Measured at Fair Value on a Recurring and Nonrecurring Basis | |||
Loans receivable (included in investments in partially owned entities and in other assets) | $ 52,094 | $ 50,091 |
Fair Value Measurements (Change
Fair Value Measurements (Changes in the Fair Value of Real Estate Investments and Deferred Compensation Plan Assets) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Sales | $ 0 | $ (5,672) | $ 0 | $ (5,672) |
Deferred Compensation Plan Assets | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Beginning balance | 40,627 | 44,526 | 38,916 | 45,016 |
Purchases | 202 | 2,104 | 845 | 2,947 |
Sales | (2,372) | (1,880) | (2,878) | (2,787) |
Realized and unrealized (losses) gains | (758) | (858) | 355 | (2,098) |
Other, net | 954 | 263 | 1,415 | 1,077 |
Ending balance | $ 38,653 | $ 44,155 | $ 38,653 | $ 44,155 |
Fair Value Measurements (Unobse
Fair Value Measurements (Unobservable Quantitative Input Ratios) (Details) - Loans Receivable - Level 3 | Jun. 30, 2023 | Dec. 31, 2022 ft² |
Discount rates | Recurring | ||
Unobservable Quantitative Input | ||
Loans receivable, measurement input | 0.075 | 0.075 |
Discount rates | Nonrecurring | Real Estate Investments | Minimum | ||
Unobservable Quantitative Input | ||
Other real estate owned, measurement input | 0.0750 | |
Discount rates | Nonrecurring | Real Estate Investments | Maximum | ||
Unobservable Quantitative Input | ||
Other real estate owned, measurement input | 0.0800 | |
Discount rates | Nonrecurring | Real Estate Investments | Weighted Average | ||
Unobservable Quantitative Input | ||
Other real estate owned, measurement input | 0.0752 | |
Terminal capitalization rates | Recurring | ||
Unobservable Quantitative Input | ||
Loans receivable, measurement input | 0.055 | 0.055 |
Terminal capitalization rates | Nonrecurring | Real Estate Investments | Minimum | ||
Unobservable Quantitative Input | ||
Other real estate owned, measurement input | 0.0475 | |
Terminal capitalization rates | Nonrecurring | Real Estate Investments | Maximum | ||
Unobservable Quantitative Input | ||
Other real estate owned, measurement input | 0.0550 | |
Terminal capitalization rates | Nonrecurring | Real Estate Investments | Weighted Average | ||
Unobservable Quantitative Input | ||
Other real estate owned, measurement input | 0.0478 |
Fair Value Measurements (Chan_2
Fair Value Measurements (Changes in the Fair Value of Loans Receivable) (Details) - Loans Receivable - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Beginning balance | $ 55,269 | $ 50,848 | $ 54,397 | $ 50,182 |
Interest accrual | 1,280 | 1,198 | 2,563 | 2,397 |
Paydowns | 0 | 0 | (411) | (533) |
Ending balance | $ 56,549 | $ 52,046 | $ 56,549 | $ 52,046 |
Fair Value Measurements (Schedu
Fair Value Measurements (Schedule of Derivative Instruments) (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Feb. 28, 2023 | Dec. 31, 2022 |
Derivative [Line Items] | |||
Long term debt | $ 2,561,717 | $ 2,560,025 | |
Non-controlling Interests in Consolidated Subsidiaries | |||
Derivative [Line Items] | |||
Rate (as percent) | 30% | ||
SOFR | |||
Derivative [Line Items] | |||
Rate (as percent) | 1% | ||
Matures in May 2028 | Five Five Five California Street | Office | |||
Derivative [Line Items] | |||
Equity method ownership percentage | 70% | 70% | |
Debt instrument, amount | $ 1,200,000 | $ 1,200,000 | |
Designated as Hedging Instrument | Interest Rate Cap | |||
Derivative [Line Items] | |||
Derivative asset, fair value | 242,379 | 183,804 | |
Derivative liability, fair value | 1,280 | ||
Designated as Hedging Instrument | 555 California Street Mortgage Loan, In-Place Swap | Interest rate swaps | |||
Derivative [Line Items] | |||
Derivative asset, notional amount | $ 840,000 | ||
Derivative, fixed interest rate | 2.29% | ||
Derivative asset, fair value | $ 36,414 | 49,888 | |
Derivative liability, fair value | 0 | ||
Designated as Hedging Instrument | 555 California Street Mortgage Loan, Forward Swap | Interest rate swaps | |||
Derivative [Line Items] | |||
Derivative asset, notional amount | $ 840,000 | ||
Derivative, fixed interest rate | 6.03% | ||
Derivative asset, fair value | $ 0 | 0 | |
Derivative liability, fair value | 1,280 | ||
Designated as Hedging Instrument | 770 Broadway mortgage loan | Interest rate swaps | |||
Derivative [Line Items] | |||
Derivative asset, notional amount | $ 700,000 | ||
Derivative, fixed interest rate | 4.98% | ||
Derivative asset, fair value | $ 33,320 | 29,226 | |
Derivative liability, fair value | 0 | ||
Designated as Hedging Instrument | PENN 11 mortgage loan | Interest rate swaps | |||
Derivative [Line Items] | |||
Derivative asset, notional amount | $ 500,000 | ||
Derivative, fixed interest rate | 2.22% | ||
Derivative asset, fair value | $ 17,471 | 26,587 | |
Derivative liability, fair value | 0 | ||
Designated as Hedging Instrument | Unsecured revolving credit facility | Interest rate swaps | |||
Derivative [Line Items] | |||
Derivative asset, notional amount | $ 575,000 | ||
Derivative, fixed interest rate | 3.87% | ||
Derivative asset, fair value | $ 27,738 | 24,457 | |
Derivative liability, fair value | 0 | ||
Designated as Hedging Instrument | Unsecured term loan | Interest rate swaps | |||
Derivative [Line Items] | |||
Derivative asset, notional amount | $ 800,000 | ||
Derivative, fixed interest rate | 4.04% | ||
Derivative asset, fair value | $ 24,001 | 21,024 | |
Derivative liability, fair value | 0 | ||
Designated as Hedging Instrument | 100 West 33rd Street mortgage loan | Interest rate swaps | |||
Derivative [Line Items] | |||
Derivative asset, notional amount | $ 480,000 | ||
Derivative, fixed interest rate | 5.06% | ||
Derivative asset, fair value | $ 11,203 | 6,886 | |
Derivative liability, fair value | 0 | ||
Designated as Hedging Instrument | 888 Seventh Avenue mortgage loan | Interest rate swaps | |||
Derivative [Line Items] | |||
Derivative asset, notional amount | $ 200,000 | ||
Derivative, fixed interest rate | 4.76% | ||
Derivative asset, fair value | $ 7,880 | 6,544 | |
Derivative liability, fair value | 0 | ||
Long term debt | $ 67,000 | ||
Rate (as percent) | 6.96% | ||
Designated as Hedging Instrument | 888 Seventh Avenue mortgage loan | Interest rate swaps | SOFR | |||
Derivative [Line Items] | |||
Derivative, basis spread on variable rate (as percent) | 1.80% | ||
Designated as Hedging Instrument | 4 Union Square South mortgage loan | Interest rate swaps | |||
Derivative [Line Items] | |||
Derivative asset, notional amount | $ 99,100 | ||
Derivative, fixed interest rate | 3.74% | ||
Derivative asset, fair value | $ 3,916 | 4,050 | |
Derivative liability, fair value | 0 | ||
Long term debt | $ 20,900 | ||
Rate (as percent) | 6.66% | ||
Designated as Hedging Instrument | 4 Union Square South mortgage loan | Interest rate swaps | SOFR | |||
Derivative [Line Items] | |||
Derivative, basis spread on variable rate (as percent) | 1.50% | ||
Designated as Hedging Instrument | 1290 Avenue of the Americas mortgage loan | Interest Rate Cap | |||
Derivative [Line Items] | |||
Derivative asset, notional amount | $ 950,000 | ||
Derivative asset, fair value | 66,456 | 7,590 | |
Derivative liability, fair value | 0 | ||
Premium paid in connection with the purchase of cap arrangement | 63,100 | ||
Designated as Hedging Instrument | 1290 Avenue of the Americas mortgage loan | Interest Rate Cap | Non-controlling Interests in Consolidated Subsidiaries | |||
Derivative [Line Items] | |||
Premium paid in connection with the purchase of cap arrangement | $ 18,930 | ||
Designated as Hedging Instrument | 1290 Avenue of the Americas mortgage loan | Interest Rate Cap | SOFR | |||
Derivative [Line Items] | |||
Cap strike rate (as percent) | 1% | ||
Designated as Hedging Instrument | One Park Avenue mortgage loan | Interest Rate Cap | |||
Derivative [Line Items] | |||
Derivative asset, notional amount | $ 525,000 | ||
Derivative asset, fair value | 10,870 | $ 5,472 | |
Derivative liability, fair value | $ 0 | ||
Designated as Hedging Instrument | One Park Avenue mortgage loan | Interest Rate Cap | SOFR | |||
Derivative [Line Items] | |||
Cap strike rate (as percent) | 3.89% | 3.89% | |
Designated as Hedging Instrument | One Park Avenue mortgage loan | Forward Cap | SOFR | |||
Derivative [Line Items] | |||
Cap strike rate (as percent) | 3.89% | ||
Designated as Hedging Instrument | Various mortgage loans | Interest Rate Cap | |||
Derivative [Line Items] | |||
Derivative asset, fair value | $ 3,110 | $ 2,080 | |
Derivative liability, fair value | 0 | ||
Designated as Hedging Instrument | Unsecured Term Loan Expiring December 2027 | Interest rate swaps | |||
Derivative [Line Items] | |||
Derivative asset, notional amount | $ 800,000 | ||
Designated as Hedging Instrument | Unsecured Term Loan Expiring October 2023 | Interest rate swaps | |||
Derivative [Line Items] | |||
Derivative asset, notional amount | $ 800,000 | ||
Derivative, fixed interest rate | 4.04% | ||
Derivative liability, notional amount | $ 0 | ||
Designated as Hedging Instrument | Unsecured Term Loan Expiring July 2025 | Interest rate swaps | |||
Derivative [Line Items] | |||
Derivative asset, notional amount | $ 700,000 | ||
Derivative, fixed interest rate | 4.52% | ||
Derivative liability, notional amount | $ 100,000 | ||
Designated as Hedging Instrument | Unsecured Term Loan Expiring October 2026 | Interest rate swaps | |||
Derivative [Line Items] | |||
Derivative asset, notional amount | $ 550,000 | $ 150,000 | |
Derivative, fixed interest rate | 4.35% | ||
Derivative liability, notional amount | $ 250,000 | ||
Designated as Hedging Instrument | Unsecured Term Loan Expiring August 2027 | Interest rate swaps | |||
Derivative [Line Items] | |||
Derivative asset, notional amount | $ 50,000 | ||
Derivative, fixed interest rate | 4.03% | ||
Derivative liability, notional amount | $ 750,000 | ||
Designated as Hedging Instrument | 1290 Avenue of Americas mortgage loan Expiring November 2025 | Interest Rate Cap | SOFR | |||
Derivative [Line Items] | |||
Cap strike rate (as percent) | 3.89% |
Fair Value Measurements (Narrat
Fair Value Measurements (Narrative) (Details) - Real Estate Investments - USD ($) | Jun. 30, 2023 | Dec. 31, 2022 |
Financial Assets and Liabilities Measured at Fair Value on a Recurring and Nonrecurring Basis | ||
Real estate fund investments | $ 0 | |
Level 3 | Nonrecurring | ||
Financial Assets and Liabilities Measured at Fair Value on a Recurring and Nonrecurring Basis | ||
Real estate fund investments | $ 2,352,328,000 |
Fair Value Measurements (Carryi
Fair Value Measurements (Carrying amounts and fair value of financial instruments) (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Unsecured revolving credit facilities | $ 575,000 | $ 575,000 |
Deferred financing costs, net and other | 59,960 | 63,572 |
Senior unsecured notes | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt, carrying amount | 1,200,000 | 1,200,000 |
Deferred financing costs, net and other | 7,147 | 8,168 |
Carrying Amount | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents | 810,395 | 402,903 |
Mortgages payable | 5,761,815 | 5,877,615 |
Unsecured revolving credit facilities | 575,000 | 575,000 |
Debt, carrying amount | 8,336,815 | 8,452,615 |
Carrying Amount | Senior unsecured notes | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Senior unsecured notes | 1,200,000 | 1,200,000 |
Carrying Amount | Unsecured term loan | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Senior unsecured notes | 800,000 | 800,000 |
Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt, fair value | 7,983,000 | 8,093,000 |
Fair Value | Level 1 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents | 810,000 | 403,000 |
Unsecured revolving credit facilities | 575,000 | 575,000 |
Fair Value | Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Mortgages payable | 5,592,000 | 5,697,000 |
Fair Value | Senior unsecured notes | Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Senior unsecured notes | 1,016,000 | 1,021,000 |
Fair Value | Unsecured term loan | Level 1 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Senior unsecured notes | $ 800,000 | $ 800,000 |
Stock-based Compensation (Narra
Stock-based Compensation (Narrative) (Details) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 29, 2023 day installment $ / shares shares | Jun. 30, 2023 USD ($) | Jun. 30, 2022 USD ($) | Jun. 30, 2023 USD ($) | Jun. 30, 2022 USD ($) | May 18, 2023 shares | |
2023 Omnibus Share Plan | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Common stock, conversion ratio | 1 | |||||
Consecutive trading days | day | 20 | |||||
Award vesting period (in years) | 10 years | |||||
Minimum | 2023 Omnibus Share Plan | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share price per common share (in dollars per share) | $ 21.0875 | |||||
Maximum | 2023 Omnibus Share Plan | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share price per common share (in dollars per share) | $ 29.5225 | |||||
Full Value Awards | Maximum | 2023 Omnibus Share Plan | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of shares authorized (in shares) | shares | 10,800,000 | |||||
Not Full Value Awards | Maximum | 2023 Omnibus Share Plan | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of shares authorized (in shares) | shares | 21,600,000 | |||||
Long Term Incentive Plan (LTIP's) | 2023 Omnibus Share Plan | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Aggregate issuance (in shares) | shares | 2,394,801 | |||||
Number of installments | installment | 2 | |||||
Transfer restriction period (in years) | 1 year | |||||
Performance Conditioned Appreciation Only Long Term Incentive Plan Units (AO LTIP) | 2023 Omnibus Share Plan | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Aggregate issuance (in shares) | shares | 14,368,750 | |||||
Share price per common share (in dollars per share) | $ 16.87 | |||||
Performance Conditioned Appreciation Only Long Term Incentive Plan Units (AO LTIP) | 2023 Omnibus Share Plan | Share-Based Payment Arrangement, Tranche One | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share price per common share (in dollars per share) | $ 21.0875 | |||||
Vesting percentage | 33% | |||||
Increase in grant date share price, percentage | 25% | |||||
Performance Conditioned Appreciation Only Long Term Incentive Plan Units (AO LTIP) | 2023 Omnibus Share Plan | Share-Based Payment Arrangement, Tranche Two | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share price per common share (in dollars per share) | $ 25.3050 | |||||
Vesting percentage | 67% | |||||
Increase in grant date share price, percentage | 50% | |||||
Performance Conditioned Appreciation Only Long Term Incentive Plan Units (AO LTIP) | 2023 Omnibus Share Plan | Share-Based Payment Arrangement, Tranche Three | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share price per common share (in dollars per share) | $ 29.5225 | |||||
Vesting percentage | 100% | |||||
Increase in grant date share price, percentage | 75% | |||||
Performance Conditioned Appreciation Only Long Term Incentive Plan Units (AO LTIP) | 3rd Anniversary of the Grant Date | 2023 Omnibus Share Plan | Share-Based Payment Arrangement, Tranche One | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting percentage | 20% | |||||
Performance Conditioned Appreciation Only Long Term Incentive Plan Units (AO LTIP) | 4th anniversary of the Grant Date | 2023 Omnibus Share Plan | Share-Based Payment Arrangement, Tranche Two | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting percentage | 80% | |||||
No Performance Units Earned | 2023 Omnibus Share Plan | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share price per common share (in dollars per share) | $ 21.0875 | |||||
General and Administrative Expense | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based compensation expense | $ | $ 11,868 | $ 5,846 | $ 23,582 | $ 19,001 |
Interest and Other Investment_3
Interest and Other Investment Income, Net (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Interest and Other Income [Abstract] | ||||
Interest on cash and cash equivalents and restricted cash | $ 12,593 | $ 310 | $ 18,267 | $ 374 |
Amortization of discount on investments in U.S. Treasury bills | 384 | 1,728 | 3,829 | 1,857 |
Interest on loans receivable | 278 | 994 | 762 | 1,819 |
Other, net | 0 | 4 | 0 | 4 |
Interest and other investment income, net | $ 13,255 | $ 3,036 | $ 22,858 | $ 4,054 |
Interest and Debt Expense (Deta
Interest and Debt Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Interest and Debt Expense [Abstract] | ||||
Interest expense | $ 91,160 | $ 60,742 | $ 180,241 | $ 111,543 |
Capitalized interest and debt expense | (9,949) | (3,701) | (18,806) | (7,221) |
Amortization of deferred financing costs | 5,954 | 5,599 | 11,967 | 10,427 |
Interest and debt expense, Total | $ 87,165 | $ 62,640 | $ 173,402 | $ 114,749 |
Income Per Share_Income Per C_3
Income Per Share/Income Per Class A Unit (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Numerator: | ||||
Net income attributable to Vornado/Vornado Realty L.P. | $ 61,906 | $ 65,947 | $ 82,603 | $ 107,954 |
Preferred share dividends / unit distributions | (15,529) | (15,529) | (31,058) | (31,058) |
NET INCOME attributable to common shareholders / Class A unitholders | 46,377 | 50,418 | 51,545 | 76,896 |
Earnings allocated to unvested participating securities | (1) | (5) | (1) | (10) |
Numerator for basic income per share | 46,376 | 50,413 | 51,544 | 76,886 |
Impact of assumed conversion of dilutive convertible securities | 377 | (380) | 700 | (257) |
Numerator for diluted income per share / Class A unit | $ 46,753 | $ 50,033 | $ 52,244 | $ 76,629 |
Denominator: | ||||
Denominator for basic income per share - weighted average shares (in shares) | 191,468 | 191,750 | 191,668 | 191,737 |
Denominator for diluted income per share - weighted average shares and assumed conversions (in shares) | 194,804 | 192,039 | 194,364 | 192,047 |
INCOME PER COMMON SHARE - BASIC: | ||||
Net income per common share(in dollars per share) | $ 0.24 | $ 0.26 | $ 0.27 | $ 0.40 |
INCOME PER COMMON SHARE - DILUTED: | ||||
Net income per common share (in dollars per share) | $ 0.24 | $ 0.26 | $ 0.27 | $ 0.40 |
Share-based payment awards | ||||
Denominator: | ||||
Effect of dilutive securities | 32 | 261 | 23 | 289 |
Convertible securities | ||||
Denominator: | ||||
Effect of dilutive securities | 3,304 | 28 | 2,673 | 21 |
Vornado Realty L.P. | ||||
Numerator: | ||||
Net income attributable to Vornado/Vornado Realty L.P. | $ 65,514 | $ 69,729 | $ 86,640 | $ 113,730 |
Preferred share dividends / unit distributions | (15,557) | (15,557) | (31,115) | (31,115) |
NET INCOME attributable to common shareholders / Class A unitholders | 49,957 | 54,172 | 55,525 | 82,615 |
Earnings allocated to unvested participating securities | (204) | (582) | (228) | (1,221) |
Numerator for basic income per share | 49,753 | 53,590 | 55,297 | 81,394 |
Impact of assumed conversion of dilutive convertible securities | 377 | (380) | 700 | (257) |
Numerator for diluted income per share / Class A unit | $ 50,130 | $ 53,210 | $ 55,997 | $ 81,137 |
Denominator: | ||||
Denominator for basic income per Class A unit - weighted average units and assumed conversions | 205,411 | 205,259 | 205,606 | 205,200 |
Denominator for diluted income per Class A unit – weighted average units and assumed conversions (in shares) | 208,747 | 205,930 | 208,302 | 205,922 |
INCOME PER CLASS A UNIT - BASIC: | ||||
Net income per Class A unit (in dollars per unit) | $ 0.24 | $ 0.26 | $ 0.27 | $ 0.40 |
INCOME PER CLASS A UNIT - DILUTED: | ||||
Net income per Class A unit (in dollars per unit) | $ 0.24 | $ 0.26 | $ 0.27 | $ 0.39 |
Vornado Realty L.P. | Share-based payment awards | ||||
Denominator: | ||||
Effect of dilutive securities | 32 | 643 | 23 | 701 |
Vornado Realty L.P. | Convertible securities | ||||
Denominator: | ||||
Effect of dilutive securities | 3,304 | 28 | 2,673 | 21 |
Income Per Share_Income Per C_4
Income Per Share/Income Per Class A Unit - Narrative (Details) - shares shares in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Antidilutive Securities Excluded From Computation Of Earnings Per Share | ||||
Weighted average common share / class A unit equivalents of excluded dilutive securities due to anti-dilutive effect (in shares) | 14,883 | 15,572 | 15,005 | 15,697 |
Vornado Realty L.P. | ||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share | ||||
Weighted average common share / class A unit equivalents of excluded dilutive securities due to anti-dilutive effect (in shares) | 940 | 1,681 | 720 | 1,822 |
Commitments and Contingencies (
Commitments and Contingencies (Details) ft² in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | |||||
Jun. 20, 2023 USD ($) | Jan. 31, 2022 USD ($) renewal_option | Jun. 30, 2023 USD ($) | Jun. 30, 2022 USD ($) | Jun. 30, 2023 USD ($) | Jun. 30, 2022 USD ($) | Dec. 31, 2020 USD ($) | Jul. 31, 2018 USD ($) ft² | |
Other Commitments | ||||||||
Fair value reset term | 25 years | |||||||
Loss contingency, damages awarded, value | $ 21,350,000 | $ 21,350,000 | ||||||
Revenues | 472,359,000 | $ 453,494,000 | 918,282,000 | $ 895,624,000 | ||||
Guarantees and master leases | 1,044,000,000 | 1,044,000,000 | ||||||
Guarantees | 508,000,000 | 508,000,000 | ||||||
Fund clawback payment | 27,200,000 | 27,200,000 | ||||||
Construction commitment | 261,000,000 | 261,000,000 | ||||||
Rental revenues | ||||||||
Other Commitments | ||||||||
Revenues | $ 418,834,000 | $ 405,194,000 | $ 815,627,000 | $ 802,477,000 | ||||
Joint Venture | Farley Office and Retail | ||||||||
Other Commitments | ||||||||
Equity method ownership percentage | 95% | 95% | ||||||
Capital contributions | $ 92,400,000 | $ 92,400,000 | $ 92,400,000 | |||||
Affiliated Entity | Farley Office and Retail | ||||||||
Other Commitments | ||||||||
Equity method ownership percentage | 5% | 5% | ||||||
Unsecured revolving credit facilities | ||||||||
Other Commitments | ||||||||
Outstanding letters of credit | $ 30,233,000 | $ 30,233,000 | ||||||
PENN 1 | ||||||||
Other Commitments | ||||||||
Number of renewal options | renewal_option | 3 | |||||||
Term of contract (in years) | 25 years | |||||||
Finance lease liability | $ 350,000,000 | |||||||
Finance lease, right-of-use asset | $ 350,000,000 | |||||||
345 Montgomery Street | Subsidiary of Regus PLC | ||||||||
Other Commitments | ||||||||
Square footage of real estate property (in sqft) | ft² | 78 | |||||||
Lessor, operating lease, lease not yet commenced, term of contract (in years) | 15 years | |||||||
Regus PLC | ||||||||
Other Commitments | ||||||||
Loss contingency, damages awarded, value | 21,350,000 | |||||||
Regus PLC | Rental revenues | ||||||||
Other Commitments | ||||||||
Revenues | 6,405,000 | 6,405,000 | ||||||
Regus PLC | 345 Montgomery Street | ||||||||
Other Commitments | ||||||||
Guarantor obligations, maximum exposure, undiscounted | $ 90,000,000 | |||||||
General Liability | ||||||||
Insurance | ||||||||
Insurance limit per occurrence | 300,000,000 | 300,000,000 | ||||||
Insurance limit per property | 300,000,000 | 300,000,000 | ||||||
Disease Coverage | ||||||||
Insurance | ||||||||
Insurance limit per property | 275,000,000 | 275,000,000 | ||||||
Insurance maximum coverage per incident | $ 250,000,000 | |||||||
All Risk And Rental Value | ||||||||
Insurance | ||||||||
Insurance limit per occurrence | 2,000,000,000 | 2,000,000,000 | ||||||
Earthquake California Properties | ||||||||
Insurance | ||||||||
Insurance limit per occurrence | 350,000,000 | 350,000,000 | ||||||
Insurance maximum coverage limit in aggregate | $ 350,000,000 | $ 350,000,000 | ||||||
Vornado deductible, percentage of property value | 5% | 5% | ||||||
Terrorism Acts | ||||||||
Insurance | ||||||||
Insurance limit per occurrence | $ 6,000,000,000 | $ 6,000,000,000 | ||||||
Insurance maximum coverage limit in aggregate | 6,000,000,000 | 6,000,000,000 | ||||||
Non-Certified Acts of Terrorism | ||||||||
Insurance | ||||||||
Insurance maximum coverage limit in aggregate | 1,200,000,000 | 1,200,000,000 | ||||||
NBCR Acts | ||||||||
Insurance | ||||||||
Insurance limit per occurrence | 5,000,000,000 | 5,000,000,000 | ||||||
Insurance maximum coverage limit in aggregate | 5,000,000,000 | 5,000,000,000 | ||||||
NBCR Acts | PPIC | ||||||||
Insurance | ||||||||
Insurance deductible | $ 1,774,525 | $ 1,774,525 | ||||||
Insurance deductible percentage of balance of covered loss | 20% | 20% |
Segment Information (Narrative)
Segment Information (Narrative) (Details) | 6 Months Ended |
Jun. 30, 2023 segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 2 |
Segment Information (Summary of
Segment Information (Summary of NOI by Segment) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Segment Information | ||||
Total revenues | $ 472,359 | $ 453,494 | $ 918,282 | $ 895,624 |
Operating expenses | (222,723) | (222,309) | (451,496) | (438,838) |
NOI - consolidated | 249,636 | 231,185 | 466,786 | 456,786 |
Deduct: NOI attributable to noncontrolling interests in consolidated subsidiaries | (18,742) | (16,299) | (30,506) | (36,334) |
Add: NOI from partially owned entities | 70,745 | 74,060 | 138,842 | 152,752 |
NOI at share | 301,639 | 288,946 | 575,122 | 573,204 |
Non-cash adjustments for straight-line rents, amortization of acquired below-market leases, net, and other | (5,570) | (4,275) | (518) | (7,405) |
NOI at share - cash basis | 296,069 | 284,671 | 574,604 | 565,799 |
New York | ||||
Segment Information | ||||
Total revenues | 362,471 | 364,162 | 726,285 | 722,710 |
Operating expenses | (176,410) | (176,572) | (364,731) | (354,107) |
NOI - consolidated | 186,061 | 187,590 | 361,554 | 368,603 |
Deduct: NOI attributable to noncontrolling interests in consolidated subsidiaries | (5,204) | (10,707) | (10,027) | (24,017) |
Add: NOI from partially owned entities | 67,509 | 71,209 | 132,833 | 147,173 |
NOI at share | 248,366 | 248,092 | 484,360 | 491,759 |
Non-cash adjustments for straight-line rents, amortization of acquired below-market leases, net, and other | (6,797) | (6,189) | (1,764) | (10,164) |
NOI at share - cash basis | 241,569 | 241,903 | 482,596 | 481,595 |
Other | ||||
Segment Information | ||||
Total revenues | 109,888 | 89,332 | 191,997 | 172,914 |
Operating expenses | (46,313) | (45,737) | (86,765) | (84,731) |
NOI - consolidated | 63,575 | 43,595 | 105,232 | 88,183 |
Deduct: NOI attributable to noncontrolling interests in consolidated subsidiaries | (13,538) | (5,592) | (20,479) | (12,317) |
Add: NOI from partially owned entities | 3,236 | 2,851 | 6,009 | 5,579 |
NOI at share | 53,273 | 40,854 | 90,762 | 81,445 |
Non-cash adjustments for straight-line rents, amortization of acquired below-market leases, net, and other | 1,227 | 1,914 | 1,246 | 2,759 |
NOI at share - cash basis | $ 54,500 | $ 42,768 | $ 92,008 | $ 84,204 |
Segment Information (Net Income
Segment Information (Net Income to NOI Reconciliation) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Segment Reporting [Abstract] | ||||
Net income | $ 62,733 | $ 68,903 | $ 73,931 | $ 122,278 |
Depreciation and amortization expense | 107,162 | 118,662 | 213,727 | 236,105 |
General and administrative expense | 39,410 | 31,902 | 81,005 | 73,118 |
Transaction related costs and other | 30 | 2,960 | 688 | 3,965 |
Income from partially owned entities | (37,272) | (25,720) | (53,938) | (59,434) |
Loss (income) from real estate fund investments | 102 | 142 | 121 | (5,532) |
Interest and other investment income, net | (13,255) | (3,036) | (22,858) | (4,054) |
Interest and debt expense | 87,165 | 62,640 | 173,402 | 114,749 |
Net gains on disposition of wholly owned and partially owned assets | (936) | (28,832) | (8,456) | (35,384) |
Income tax expense | 4,497 | 3,564 | 9,164 | 10,975 |
NOI from partially owned entities | 70,745 | 74,060 | 138,842 | 152,752 |
NOI attributable to noncontrolling interests in consolidated subsidiaries | (18,742) | (16,299) | (30,506) | (36,334) |
NOI at share | 301,639 | 288,946 | 575,122 | 573,204 |
Non-cash adjustments for straight-line rents, amortization of acquired below-market leases, net and other | (5,570) | (4,275) | (518) | (7,405) |
NOI at share - cash basis | $ 296,069 | $ 284,671 | $ 574,604 | $ 565,799 |
Subsequent Events - Narrative (
Subsequent Events - Narrative (Details) ft² in Thousands, $ in Thousands | 3 Months Ended | |||||
Jul. 27, 2023 USD ($) property | Jul. 24, 2023 USD ($) ft² | Jul. 03, 2023 USD ($) | Sep. 30, 2023 USD ($) | Jun. 30, 2023 USD ($) | Dec. 31, 2022 USD ($) | |
Subsequent Events | ||||||
Loans payable | $ 5,715,138 | $ 5,829,018 | ||||
Amory Trade Show | Forecast | ||||||
Subsequent Events | ||||||
Net gain (loss) on sale of real estate | $ 20,000 | |||||
Manhattan Retail Properties Sale | Discontinued Operations, Held-for-Sale or Disposed of by Sale | ||||||
Subsequent Events | ||||||
Disposal group, including discontinued operation, assets | $ 96,106 | |||||
Subsequent Event | 825 Seventh Avenue | Office and Retail Building | Maturing In January 2026 | ||||||
Subsequent Events | ||||||
Loans payable | $ 54,000 | |||||
Square footage of real estate property (in sqft) | ft² | 173 | |||||
Basis spread on variable rate (percent) | 0.30% | |||||
Subsequent Event | 825 Seventh Avenue | Office and Retail Building | Maturing In January 2026 | SOFR | ||||||
Subsequent Events | ||||||
Debt instrument, interest rate, stated percentage (percent) | 2.75% | |||||
Subsequent Event | 825 Seventh Avenue | Office and Retail Building | Maturing In July 2023 | ||||||
Subsequent Events | ||||||
Loans payable | $ 60,000 | |||||
Subsequent Event | 825 Seventh Avenue | Office and Retail Building | Maturing In July 2023 | LIBOR | ||||||
Subsequent Events | ||||||
Basis spread on variable rate (percent) | 2.35% | |||||
Subsequent Event | Joint Venture | 825 Seventh Avenue | Office and Retail Building | Maturing In January 2026 | ||||||
Subsequent Events | ||||||
Equity method ownership percentage | 50% | |||||
Subsequent Event | Amory Trade Show | ||||||
Subsequent Events | ||||||
Proceeds from sale of real estate | $ 24,400 | |||||
Subsequent Event | Manhattan Retail Properties Sale | ||||||
Subsequent Events | ||||||
Net gain (loss) on sale of real estate | $ 500 | |||||
Subsequent Event | Manhattan Retail Properties Sale | Discontinued Operations, Held-for-Sale or Disposed of by Sale | ||||||
Subsequent Events | ||||||
Proceeds from sale of real estate | $ 100,000 | |||||
Number of properties sold | property | 4 |