NADO REALTY TRUST SUPPLEMENTAL OPERATING AND FINANCIAL DATA For the Quarter and Year Ended December 31, 2019 INDEX | --- | --- | |----------------------------------------------------------------------------------|-------------------------| | BUSINESS DEVELOPMENTS | Page \n3 - 6 | | FINANCIAL INFORMATION | | | Financial Highlights | 7 | | Net Income Attributable to Common Shareholders (Consolidated and by Segment) | 8 - 11 | | Net Operating Income at Share (by Segment and by Subsegment) | 12 - 14 | | Same St ...

| UNITED STATES | | | | --- | --- | --- | | SECURITIES AND EXCHANGE COMMISSION | | | | WASHINGTON, D. C. 20549 | | | | FORM | 10-K | | | ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE | | | | ACT OF 1934 | | | | For the Fiscal Year Ended: | December 31, 2019 | | | OR | | | | ☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES | | | EXCHANGE ACT OF 1934 | | | | For the transition period from | to | | | Commission File Number: | 001-11954 (Vornado Realty Trust) ...

Financial Data and Key Metrics Changes - Third quarter FFO as adjusted was $0.89 per share, a decrease of $0.07 compared to the same quarter last year [10] - The company anticipates meeting an approximate $3.40 per share in comparable FFO for 2019 [15] - Non-comparable items included $178.8 million in net gains on sale of real estate and a $109 million after-tax net gain on unit closings at 220 Central Park South [16] Business Line Data and Key Metrics Changes - Company-wide, third quarter cash basis same store NOI increased by 1%, with New York office and street retail both up 1%, while theMART was down 1% and 555 California Street up 17.7% [18] - In New York, leasing activity remains strong with 25 million square feet of new leases signed in the first three quarters of 2019 [20] - Retail occupancy was 95.9% at quarter-end, with nine leases executed for 26,000 square feet achieving positive mark-to-markets of 6.2% cash and 15.6% GAAP [39] Market Data and Key Metrics Changes - The New York office market is experiencing positive job growth, with office sector jobs increasing by about 18,000 compared to 20,000 for all of 2018 [22] - There are currently 65 tenants actively looking for 100,000 square feet or more, totaling 16 million square feet of potential activity [23] - The Chicago market at theMART executed 45,000 square feet of leases at an average starting rent of over $48 per square foot [34] Company Strategy and Development Direction - The company is focusing on the redevelopment of the Penn District, with 5.2 million square feet of combined redevelopments [24] - The goal is to make the Penn District the go-to location for tenants in the city, enhancing offerings with new food and beverage outlets and other amenities [27][28] - The company maintains a fortress balance sheet with current liquidity of $3.36 billion [41] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term potential of prime locations despite recent bankruptcies of tenants like Forever 21 [14] - The company is optimistic about the future growth driven by the Penn District redevelopment, although it may take time to realize significant cash flow [106] - Management acknowledged the challenges in the retail market but emphasized the strength of their office portfolio [39][60] Other Important Information - The company plans to pay out a special dividend of approximately $1.90 per share this year based on tactical gains from asset sales [41] - The retail market is correcting, with rents coming down in certain sub-markets, particularly Madison Avenue [95] Q&A Session Summary Question: Leasing pipeline in the Penn District - Management noted a balance of activity from tenants in Midtown and tech sector tenants looking at their projects [44] Question: Impact of Forever 21 on leasing and tenant psychology - Management acknowledged the negative surprise but emphasized the importance of keeping the space occupied and flexible for future tenants [46] Question: Timing of impacts from Topshop and Forever 21 on NOI - Management confirmed that Topshop started affecting NOI in Q3, while Forever 21's impact began in Q3 as well [52] Question: Update on the 400,000 square foot headquarters lease - Management indicated that the lease is out for signature and expects it to be signed in the next few months [67] Question: Retail market conditions and potential tenant concerns - Management stated that the retail market is soft, and they are monitoring various tenants closely [59] Question: Future sales and asset management strategy - Management confirmed that all options are on the table regarding future sales and emphasized the importance of their ongoing redevelopment efforts [121]

NADO REALTY TRUST SUPPLEMENTAL OPERATING AND FINANCIAL DATA For the Quarter Ended September 30, 2019 INDEX | --- | --- | |--------------------------------------------------------------------------------------------------|------------------| | BUSINESS DEVELOPMENTS | Page \n3 - 6 | | FINANCIAL INFORMATION | | | Financial Highlights | 7 | | Net Income Attributable to Common Shareholders (Consolidated and by Segment) | 8 - 11 | | Net Operating Income at Share (by Segment and by Subsegment) | 12 - 14 | | Same S ...

SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark one) ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended: September 30, 2019 Or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from: to Commission File Number: 001-11954 (Vornado Realty Trust) Commission File Number: 001-34482 (Vornado Realty L.P.) Vornado Realty Trust Vornado Realty L.P. (Exact na ...

Vornado Realty Trust (NYSE:VNO) Q2 2019 Earnings Conference Call July 30, 2019 10:00 AM ET Company Participants Cathy Creswell - Director, Investor Relations Michael Franco - President Steven Roth - Chairman & Chief Executive Officer Joe Macnow - Executive Vice President, Chief Financial Officer & Chief Administrative Officer David Greenbaum - Vice Chairman Conference Call Participants Manny Korchman - Citi Steve Sakwa - Evercore ISI James Feldman - Bank of America Merrill Lynch John Kim - BMO Capital Marke ...

PART I. Financial Information [Financial Statements](index=6&type=section&id=Item%201.%20Financial%20Statements) This section presents the unaudited consolidated financial statements for Vornado Realty Trust and Vornado Realty L.P., including balance sheets, income, and cash flow statements, notably impacted by the Fifth Avenue and Times Square JV and ASC 842 adoption [Vornado Realty Trust Financial Statements](index=6&type=section&id=Vornado%20Realty%20Trust%20Financial%20Statements) Vornado Realty Trust reported a significant increase in net income for Q2 and H1 2019, primarily due to a $2.57 billion gain from the Fifth Avenue and Times Square JV, impacting assets and liabilities Vornado Realty Trust - Key Financial Highlights (Q2 & H1 2019 vs 2018) | Metric (in thousands, except per share) | Q2 2019 | Q2 2018 | YTD 2019 | YTD 2018 | | :--- | :--- | :--- | :--- | :--- | | **Total Revenues** | $463,103 | $541,818 | $997,771 | $1,078,255 | | **Net Gain on transfer to Fifth Avenue and Times Square JV** | $2,571,099 | $0 | $2,571,099 | $0 | | **Net Income attributable to common shareholders** | $2,400,195 | $111,534 | $2,581,683 | $93,693 | | **Diluted EPS** | $12.56 | $0.58 | $13.51 | $0.49 | Vornado Realty Trust - Consolidated Balance Sheet Summary (in thousands) | Account | June 30, 2019 | Dec 31, 2018 | | :--- | :--- | :--- | | Real estate, net | $10,148,187 | $13,057,708 | | Total Assets | $17,913,857 | $17,180,794 | | Mortgages payable, net | $6,256,808 | $8,167,798 | | Total Liabilities | $9,555,651 | $11,289,349 | | Total Shareholders' Equity | $6,860,554 | $4,465,231 | - Cash and cash equivalents increased significantly to **$922.6 million** as of June 30, 2019, from **$570.9 million** at the end of 2018, reflecting proceeds from asset sales and joint ventures[17](index=17&type=chunk) [Vornado Realty L.P. Financial Statements](index=15&type=section&id=Vornado%20Realty%20L.P.%20Financial%20Statements) Vornado Realty L.P.'s financial statements are substantially identical to Vornado Realty Trust's, reflecting its role as the operating entity, with a similar net income increase driven by the Fifth Avenue and Times Square JV - The assets and liabilities on the Vornado Realty L.P. balance sheet are identical to those of Vornado Realty Trust, reflecting the UPREIT structure where the Operating Partnership holds substantially all assets and liabilities[41](index=41&type=chunk) Vornado Realty L.P. - Key Income Statement Highlights (Q2 & H1 2019 vs 2018) | Metric (in thousands, except per unit) | Q2 2019 | Q2 2018 | YTD 2019 | YTD 2018 | | :--- | :--- | :--- | :--- | :--- | | **Total Revenues** | $463,103 | $541,818 | $997,771 | $1,078,255 | | **Net Income attributable to Class A unitholders** | $2,562,669 | $118,931 | $2,756,318 | $99,917 | | **Diluted Income per Class A unit** | $12.54 | $0.58 | $13.50 | $0.48 | [Notes to Consolidated Financial Statements](index=24&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) These notes detail accounting policies and significant transactions, including ASC 842 adoption, revenue recognition, the Fifth Avenue and Times Square JV, 220 Central Park South unit sales, debt refinancing, and 608 Fifth Avenue impairment - The company adopted the new lease accounting standard ASC 842 on January 1, 2019, resulting in the recognition of **$526.9 million** in Right-of-Use (ROU) assets and corresponding lease liabilities for its ground leases[68](index=68&type=chunk) - A major transaction was the formation of the Fifth Avenue and Times Square JV on April 18, 2019. Vornado transferred several properties into the JV, sold a 48.5% common interest, and recognized a financial statement net gain of **$2.57 billion**[97](index=97&type=chunk)[100](index=100&type=chunk) - During the first six months of 2019, the company closed on the sale of 23 condominium units at 220 Central Park South for net proceeds of **$690.7 million**, resulting in a financial statement net gain of **$269.6 million**[126](index=126&type=chunk) - The company recognized a **$93.9 million** non-cash impairment loss related to its retail property at 608 Fifth Avenue after the tenant, Topshop, filed for bankruptcy and closed its U.S. stores[183](index=183&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=55&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the company's financial performance, highlighting a significant increase in Q2 2019 net income to $2.4 billion due to the Fifth Avenue and Times Square JV gain, alongside a decrease in FFO, and covers dispositions, financing, and liquidity [Overview](index=56&type=section&id=Overview) This overview summarizes Q2 2019 financial results, including a surge in net income to $2.4 billion from the Fifth Avenue and Times Square JV gain, a decrease in FFO, and details significant dispositions and leasing activity Q2 2019 vs Q2 2018 Financial Results Summary | Metric (per diluted share) | Q2 2019 | Q2 2018 | | :--- | :--- | :--- | | **Net Income** | $12.56 | $0.58 | | **FFO** | $0.86 | $1.02 | - The primary driver for the substantial increase in net income was the formation of the Fifth Avenue and Times Square JV, which resulted in a financial statement net gain of **$2.57 billion**[264](index=264&type=chunk) - Significant dispositions in H1 2019 included the sale of all common shares of Lexington Realty Trust for **$167.7 million** and all partnership units of Urban Edge Properties for **$108.5 million**[259](index=259&type=chunk)[260](index=260&type=chunk) Same Store NOI Growth (Q2 2019 vs Q2 2018) | Portfolio | Same Store NOI (GAAP) | Same Store NOI (Cash) | | :--- | :--- | :--- | | **Total** | 1.2% | 4.3% | | **New York** | (0.7)% | 2.5% | | **theMART** | 12.1% | 15.5% | | **555 California Street** | 13.0% | 12.9% | [Results of Operations](index=69&type=section&id=Results%20of%20Operations) This section details operational results for Q2 and H1 2019, showing a decrease in total revenues due to the Fifth Avenue JV deconsolidation, an increase in expenses from the 608 Fifth Avenue impairment, and a decrease in interest expense - Q2 2019 revenues decreased by **$78.7 million** year-over-year, with a **$62.6 million** reduction directly attributable to properties transferred to the Fifth Avenue and Times Square JV[300](index=300&type=chunk) - Q2 2019 expenses increased by **$90.2 million**, mainly due to a **$100.6 million** charge for transaction costs and impairment losses, substantially related to the 608 Fifth Avenue property[302](index=302&type=chunk) - Interest and debt expense for Q2 2019 decreased by **$24.6 million** compared to Q2 2018, driven by lower debt balances from the JV transaction and paydowns of the 220 CPS loan[312](index=312&type=chunk) - Income tax expense rose to **$26.9 million** in Q2 2019 from **$0.5 million** in Q2 2018, primarily due to **$22.8 million** in taxes on the sale of 220 CPS condominium units[315](index=315&type=chunk) [Liquidity and Capital Resources](index=88&type=section&id=Liquidity%20and%20Capital%20Resources) The company's liquidity strengthened in H1 2019, with cash increasing to $1.08 billion due to significant inflows from the Fifth Avenue JV and 220 CPS sales, largely offset by debt repayments, while outlining substantial ongoing development commitments Cash Flow Summary (Six Months Ended June 30) | Cash Flow Activity (in thousands) | 2019 | 2018 | | :--- | :--- | :--- | | Net cash provided by operating activities | $292,852 | $241,260 | | Net cash provided by (used in) investing activities | $2,113,511 | ($254,906) | | Net cash used in financing activities | ($2,046,358) | ($689,207) | - Major sources of cash in H1 2019 included **$1.26 billion** from the Fifth Avenue JV transaction and **$690.7 million** from 220 CPS condo sales[392](index=392&type=chunk) - Major uses of cash in H1 2019 included **$1.94 billion** in debt repayments and **$407 million** for the purchase of marketable securities to defease a mortgage[393](index=393&type=chunk) - As of June 30, 2019, the company has construction commitments of approximately **$730 million** and expects to fund an additional **$15.4 million** to partially owned entities[419](index=419&type=chunk) [Funds From Operations (FFO)](index=93&type=section&id=Funds%20From%20Operations%20(FFO)) This section details the calculation and reconciliation of FFO, a non-GAAP measure, showing a decrease in Q2 2019 FFO to $164.3 million ($0.86/share) from $194.7 million ($1.02/share) in Q2 2018, with adjustments from net income FFO Reconciliation Summary (in thousands, except per share) | Metric | Q2 2019 | Q2 2018 | YTD 2019 | YTD 2018 | | :--- | :--- | :--- | :--- | :--- | | **Net income attributable to common shareholders** | $2,400,195 | $111,534 | $2,581,683 | $93,693 | | **FFO adjustments, net** | ($2,235,880) | $83,103 | ($2,169,699) | $235,928 | | **FFO attributable to common shareholders** | $164,315 | $194,637 | $411,984 | $329,621 | | **FFO per diluted share** | $0.86 | $1.02 | $2.16 | $1.72 | - The company has elected to exclude mark-to-market adjustments of marketable equity securities from its FFO calculation, in line with the December 2018 NAREIT restated definition[422](index=422&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=95&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company is exposed to interest rate risk, with a 1% rate increase potentially decreasing annual net income by $30.1 million, which it mitigates using interest rate swaps on variable-rate debt Interest Rate Sensitivity Analysis (as of June 30, 2019) | Debt Type | Balance (in thousands) | Weighted Avg. Rate | Effect of 1% Rate Change (in thousands) | | :--- | :--- | :--- | :--- | | **Consolidated Variable Rate** | $1,763,182 | 4.06% | $17,632 | | **Pro Rata Share of Non-Consolidated Variable Rate** | $1,475,815 | 4.04% | $14,758 | | **Total Annual Net Income Impact (Vornado)** | | | **$30,062** | - The company uses interest rate swaps to fix the rates on several large variable-rate loans, including its **$750 million** unsecured term loan (fixed at **3.87%**) and a **$700 million** mortgage on 770 Broadway (fixed at **2.56%**)[430](index=430&type=chunk) [Controls and Procedures](index=96&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of June 30, 2019, with no material changes to internal control over financial reporting during the quarter - Both Vornado Realty Trust and Vornado Realty L.P. concluded that their disclosure controls and procedures were effective as of June 30, 2019[433](index=433&type=chunk)[435](index=435&type=chunk) - No material changes to internal control over financial reporting occurred during the second quarter of 2019[434](index=434&type=chunk)[436](index=436&type=chunk) PART II. Other Information [Legal Proceedings](index=97&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in various legal actions, which management does not expect to have a material adverse effect on its financial position or operations - The company states that ongoing legal actions are not expected to have a material adverse effect on its financial condition[438](index=438&type=chunk) [Risk Factors](index=97&type=section&id=Item%201A.%20Risk%20Factors) No material changes to the company's risk factors were reported for the period, consistent with disclosures in the prior annual report - No material changes to risk factors were reported for the period[439](index=439&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=97&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) Vornado Realty Trust reported no unregistered equity sales, while Vornado Realty L.P. issued 641,103 Class A units for equity awards, exempt from registration under Section 4(2) - Vornado Realty L.P. issued **641,103** Class A units in Q2 2019 related to employee equity awards, exempt from registration[441](index=441&type=chunk) [Exhibits](index=97&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the Form 10-Q, including the Crown Jewel Partner LLC Transaction Agreement, CEO/CFO certifications, and XBRL data files - Key exhibits filed include the Transaction Agreement with Crown Jewel Partner LLC, CEO/CFO certifications (Rule 13a-14 and Section 1350), and XBRL financial data[447](index=447&type=chunk)

Vornado Realty Trust (NYSE:VNO) Q1 2019 Earnings Conference Call April 30, 2019 10:00 AM ET Company Participants Catherine Creswell - Director, Investor Relations Steven Roth - Chairman and Chief Executive Officer David Greenbaum - President, New York Division Joseph Macnow - Executive Vice President, Chief Financial Officer, and Chief Administrative Officer Michael Franco - Executive Vice President and Chief Investment Officer Conference Call Participants Michael Bilerman - Citi Steve Sakwa - Evercore Jame ...

PART I. [Financial Information](index=7&type=section&id=PART%20I.%20Financial%20Information) This section presents the company's consolidated financial statements, management's discussion, and market risk disclosures [Item 1. Financial Statements](index=7&type=section&id=Item%201.%20Financial%20Statements) This section presents the unaudited consolidated financial statements for Vornado Realty Trust and L.P., highlighting significant gains from asset sales and the adoption of ASC 842 [Vornado Realty Trust Consolidated Financial Statements](index=7&type=section&id=Vornado%20Realty%20Trust%20Consolidated%20Financial%20Statements) Vornado Realty Trust reported a significant increase in Q1 2019 net income to $194.0 million, primarily driven by gains on asset dispositions Vornado Realty Trust - Key Financial Highlights (Q1 2019 vs Q1 2018) | Metric | Q1 2019 (in thousands) | Q1 2018 (in thousands) | Change | | :--- | :--- | :--- | :--- | | Total Revenues | $534,668 | $536,437 | -0.3% | | Net Income Attributable to Vornado | $194,022 | $9,680 | +1904.4% | | Net Income (Loss) Attributable to Common Shareholders | $181,488 | $(17,841) | N/A | | Diluted EPS | $0.95 | $(0.09) | N/A | Vornado Realty Trust - Balance Sheet Summary (As of March 31, 2019) | Account | March 31, 2019 (in thousands) | Dec 31, 2018 (in thousands) | | :--- | :--- | :--- | | Real estate, net | $10,213,215 | $13,057,708 | | Assets held for sale | $3,027,058 | $0 | | Total Assets | $17,637,955 | $17,180,794 | | Mortgages payable, net | $6,519,189 | $8,167,798 | | Total Liabilities | $11,679,978 | $11,289,349 | | Total Shareholders' Equity | $4,443,992 | $4,465,231 | Vornado Realty Trust - Cash Flow Summary (Three Months Ended March 31) | Cash Flow Activity | 2019 (in thousands) | 2018 (in thousands) | | :--- | :--- | :--- | | Net Cash from Operating Activities | $64,118 | $265,418 | | Net Cash from Investing Activities | $403,294 | $(190,620) | | Net Cash from Financing Activities | $(274,683) | $(571,542) | [Vornado Realty L.P. Consolidated Financial Statements](index=16&type=section&id=Vornado%20Realty%20L.P.%20Consolidated%20Financial%20Statements) Vornado Realty L.P.'s financial statements mirror the Trust's, showing a significant increase in Q1 2019 net income to $206.2 million Vornado Realty L.P. - Key Financial Highlights (Q1 2019 vs Q1 2018) | Metric | Q1 2019 (in thousands) | Q1 2018 (in thousands) | Change | | :--- | :--- | :--- | :--- | | Total Revenues | $534,668 | $536,437 | -0.3% | | Net Income Attributable to Vornado Realty L.P. | $206,224 | $8,556 | +2310.2% | | Net Income (Loss) Attributable to Class A Unitholders | $193,649 | $(19,014) | N/A | | Diluted EPS (per Class A unit) | $0.95 | $(0.10) | N/A | [Notes to Consolidated Financial Statements](index=25&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) The notes detail accounting policies, the adoption of ASC 842, and significant transactions including asset sales and a major post-quarter-end joint venture - Effective January 1, 2019, the company adopted the new lease accounting standard ASC 842, resulting in the recording of **$526.9 million** of right-of-use assets and corresponding lease liabilities for its 12 ground leases[57](index=57&type=chunk) - During Q1 2019, the company closed on the sale of 12 condominium units at 220 Central Park South, generating net proceeds of **$425.5 million** and a financial statement net gain of **$157.9 million**[101](index=101&type=chunk) - On April 18, 2019, the company entered into a joint venture for its Fifth Avenue and Times Square portfolio, valuing the properties at **$5.556 billion**. The transaction is expected to result in a financial statement net gain of approximately **$2.6 billion** and net cash proceeds of approximately **$1.2 billion**[103](index=103&type=chunk)[105](index=105&type=chunk)[106](index=106&type=chunk) - The company sold its entire stake in Urban Edge Properties (UE) for net proceeds of **$108.5 million**, recognizing a net gain of **$62.4 million**[87](index=87&type=chunk) - On March 1, 2019, the company redeemed all of its **$400 million** 5.00% senior unsecured notes due 2022, incurring a debt prepayment cost of **$22.5 million**[118](index=118&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=57&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q1 2019 financial results, highlighting increased net income and FFO per share driven by asset sales and solid leasing activity [Overview of Financial Results](index=58&type=section&id=Overview%20of%20Financial%20Results) Q1 2019 saw significant improvements in net income and FFO per share, primarily due to asset sales, with strong Same Store NOI growth Q1 2019 Financial Performance vs. Q1 2018 | Metric | Q1 2019 | Q1 2018 | | :--- | :--- | :--- | | Net Income (Loss) per Diluted Share | $0.95 | $(0.09) | | FFO per Diluted Share | $1.30 | $0.71 | Same Store NOI at Share % Change (Q1 2019 vs. Q1 2018) | Metric | Total | New York | theMART | 555 California Street | | :--- | :--- | :--- | :--- | :--- | | Same Store NOI at Share (GAAP) | (0.1)% | (0.1)% | (4.3)% | 7.3% | | Same Store NOI at Share (Cash) | 3.0% | 2.6% | 0.9% | 15.0% | - The company's portfolio occupancy remained high as of **March 31, 2019**, with the New York office portfolio at **97.0%** and 555 California Street at **99.4%**[246](index=246&type=chunk) [Results of Operations](index=68&type=section&id=Results%20of%20Operations) Total revenues slightly decreased while expenses rose, primarily due to G&A and debt prepayment costs, offset by significant net gains on dispositions - Total revenues decreased slightly by **$1.8 million** year-over-year, while total expenses increased by **$25.6 million**[261](index=261&type=chunk)[262](index=262&type=chunk) - General and administrative expenses increased by **$15.5 million**, primarily due to a **$16.2 million** non-cash charge for accelerated vesting of stock-based compensation[262](index=262&type=chunk)[263](index=263&type=chunk) - Interest and debt expense rose by **$14.3 million**, largely due to a **$22.5 million** prepayment cost related to the redemption of **$400 million** in senior unsecured notes[273](index=273&type=chunk) - Net gains on dispositions totaled **$220.3 million**, comprising a **$157.9 million** gain from 220 CPS condo sales and a **$62.4 million** gain from the sale of UE units[274](index=274&type=chunk) [Liquidity and Capital Resources](index=79&type=section&id=Liquidity%20and%20Capital%20Resources) Cash and equivalents increased due to strong investing activities from asset sales, while significant capital commitments remain for ongoing development projects - Cash and cash equivalents and restricted cash increased by **$192.7 million** to end the quarter at **$909.6 million**[309](index=309&type=chunk) - Investing activities were a significant source of cash (**$403.3 million**), driven by proceeds from the sale of 220 CPS condominium units (**$425.5 million**) and marketable securities (**$167.8 million**)[310](index=310&type=chunk) - The company has construction commitments of approximately **$774 million** as of March 31, 2019, related to major development projects like the Farley Office Building and PENN1 redevelopment[192](index=192&type=chunk)[337](index=337&type=chunk) - The development of the 220 CPS residential tower is estimated to cost approximately **$1.4 billion** (excluding land), with **$1.3 billion** expended as of March 31, 2019[316](index=316&type=chunk) [Funds From Operations (FFO)](index=84&type=section&id=Funds%20From%20Operations%20(FFO)) FFO attributable to common shareholders significantly increased to $247.7 million ($1.30 per diluted share) in Q1 2019, reflecting adjustments to net income FFO Reconciliation (Q1 2019 vs Q1 2018) | Metric (in thousands, except per share) | Q1 2019 | Q1 2018 | | :--- | :--- | :--- | | Net Income (Loss) Attributable to Common Shareholders | $181,488 | $(17,841) | | FFO Adjustments, net | $66,181 | $152,825 | | FFO Attributable to Common Shareholders | $247,669 | $134,984 | | **FFO per Diluted Share** | **$1.30** | **$0.71** | [Quantitative and Qualitative Disclosures About Market Risk](index=86&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company faces interest rate risk from $2.48 billion in variable-rate debt, mitigated by interest rate swaps on key loans Interest Rate Risk Exposure (As of March 31, 2019) | Debt Type | Balance (in thousands) | Effect of 1% Rate Change on Annual Net Income (in thousands) | | :--- | :--- | :--- | | Consolidated Variable Rate Debt | $2,475,508 | $24,755 | | Pro Rata Share of Non-Consolidated Variable Rate Debt | $1,266,752 | $12,668 | | **Total Change in Annual Net Income Attributable to Vornado** | | **$34,809** | - The company uses interest rate swaps to fix the rates on several large loans, including a **$750 million** unsecured term loan, a **$700 million** mortgage on 770 Broadway, and a **$375 million** mortgage on 888 Seventh Avenue[345](index=345&type=chunk) [Controls and Procedures](index=87&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures for both Vornado Realty Trust and L.P. were effective as of March 31, 2019 - Management concluded that as of **March 31, 2019**, the disclosure controls and procedures for both Vornado Realty Trust and Vornado Realty L.P. were effective[348](index=348&type=chunk)[350](index=350&type=chunk) PART II. [Other Information](index=88&type=section&id=PART%20II.%20Other%20Information) This section provides additional information including legal proceedings, risk factors, equity sales, and exhibits [Legal Proceedings](index=88&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in ordinary legal actions, but their outcomes are not expected to materially affect financial condition - The company states that the outcome of current legal actions is not expected to have a **material adverse effect** on its financial position[353](index=353&type=chunk) [Risk Factors](index=88&type=section&id=Item%201A.%20Risk%20Factors) No material changes to previously disclosed risk factors were reported during the quarter [Unregistered Sales of Equity Securities and Use of Proceeds](index=88&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) Vornado Realty L.P. issued **762,145 Class A units** for equity awards in Q1 2019, generating **$11.7 million** in cash proceeds - In Q1 2019, Vornado Realty L.P. issued **762,145 Class A units** related to equity awards, raising **$11.7 million** in cash proceeds[356](index=356&type=chunk) [Exhibits](index=88&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including credit agreements, certification letters, and XBRL data

Vornado Realty Trust (NYSE:VNO) Q4 2018 Earnings Conference Call February 12, 2019 10:00 AM ET Executives Catherine Creswell - Director, Investor Relations Steven Roth - Chairman and Chief Executive Officer David Greenbaum - President, New York Division Joseph Macnow - Executive Vice President, Chief Financial Officer, and Chief Administrative Officer Michael Franco - Executive Vice President and Chief Investment Officer Analysts Stephen Sakwa - Evercore ISI Emmanuel Korchman - Citigroup Jamie Feldman - Ban ...