Vornado(US:VNO)2024-08-05 20:16Financial Performance - Net income attributable to common shareholders for Q2 2024 was $35,260,000, or $0.18 per diluted share, down from $46,377,000, or $0.24 per diluted share in Q2 2023, representing a decrease of 24.5%[125] - FFO attributable to common shareholders for the six months ended June 30, 2024 was $253,068,000, or $1.29 per diluted share, down from $263,149,000, or $1.35 per diluted share in the same period of 2023, a decrease of 3.1%[126] - Net income for the same period was $40,099,000, down from $62,733,000 in the previous year[148] - Net income for the six months ended June 30, 2024, was $33,826,000, down from $73,931,000 in the prior year, representing a decrease of 54%[171] - Total revenues for the six months ended June 30, 2024, were $886,641,000, compared to $918,282,000 for the same period in 2023, reflecting a decline of 3.4%[165][166] Revenue and Income Metrics - For the three months ended June 30, 2024, total revenues amounted to $450,266,000, with New York contributing $367,578,000 and other regions $82,688,000[142] - The company experienced a decrease in same-store operations revenue by $29,995,000 for the three months ended June 30, 2024, compared to the prior year[151] - Total revenues for the three months ended June 30, 2024, were $450,266,000, a decrease of $22,093,000 compared to $472,359,000 for the prior year's quarter[151] - Total revenue for the six months ended June 30, 2024, was $468,628,000, a decrease of $13,968,000 compared to $482,596,000 for the same period in 2023[169] Operating Income and Expenses - Same store net operating income (NOI) at share decreased by 9.0% for the three months ended June 30, 2024, compared to the same period in 2023[129] - Total expenses for the six months ended June 30, 2024, were $760,341,000, an increase of $7,515,000 compared to $752,826,000 in the prior year[176] - Total expenses for the three months ended June 30, 2024, were $382,388,000, an increase of $10,881,000 from $371,507,000 in the prior year[152] - Interest and debt expense increased to $188,879,000 for the six months ended June 30, 2024, up from $173,402,000 in the prior year, an increase of 8.9%[180] Cash Flow and Liquidity - Cash and cash equivalents and restricted cash decreased by $144,730,000 to $1,116,854,000 as of June 30, 2024, compared to December 31, 2023[190] - Net cash provided by operating activities for the six months ended June 30, 2024, was $226,164,000, down from $374,741,000 in 2023, a decrease of $148,577,000[190] - Net cash used in investing activities was $(307,100,000) for the six months ended June 30, 2024, compared to a net cash provided of $152,373,000 in 2023, a decrease of $459,473,000[191] - As of June 30, 2024, the company had $2.7 billion in liquidity, consisting of $1.1 billion in cash and cash equivalents and $1.6 billion available on revolving credit facilities[189] Development and Construction - The PENN 2 redevelopment project is a 1,795,000 square foot office building with an estimated development cost of $750 million, of which $675,504,000 has been expended as of June 30, 2024[194] - The districtwide improvements within the PENN District have an estimated development cost of $100 million, with $60,493,000 expended as of June 30, 2024[194] - The Sunset Pier 94 Studios joint venture has a total estimated development cost of $350 million, with $183,200,000 funded through construction financing and $166,800,000 through equity contributions[195] - The company has construction commitments totaling approximately $45,819,000 as of June 30, 2024[200] Debt and Interest Rates - As of June 30, 2024, the consolidated debt balance is $8,283,919,000, with a weighted average interest rate of 4.57%[205] - The fixed rate consolidated debt amounts to $7,067,300,000 at an interest rate of 4.28%[205] - The variable rate consolidated debt totals $1,216,619,000 with an interest rate of 6.21%[205] - A 1% change in base rates would result in an effect of $4,512,000 on the consolidated debt[205] Shareholder Returns and Dividends - The company anticipates paying a common share dividend in the fourth quarter of 2024, subject to Board approval[189] - The company authorized a share repurchase program of up to $200,000,000, with $170,857,000 remaining available for repurchases as of June 30, 2024[189] Noncontrolling Interests and Losses - Net loss attributable to noncontrolling interests in consolidated subsidiaries increased to $13,890,000 in Q2 2024 from $2,781,000 in Q2 2023, a rise of 399.5% driven by higher mortgage loan interest rates[159] - The company reported a significant increase in noncontrolling interests' losses, indicating potential challenges in managing subsidiary performance amidst rising interest rates[159] - Net loss attributable to noncontrolling interests in consolidated subsidiaries was $25,872,000 for the six months ended June 30, 2024, compared to $12,709,000 in the prior year, an increase of 103.6%[183]