Vornado(US:VNO)2024-11-04 21:38Financing and Debt Management - The company extended the $1,075,000,000 mortgage loan on 280 Park Avenue to September 2026, with options to extend to September 2028, maintaining an interest rate of SOFR plus 1.78%[4] - A refinancing of 435 Seventh Avenue was completed for $75,000,000, with a fixed interest rate of 6.96% through April 2026, replacing a previous loan of $95,696,000[4] - The company extended its unsecured revolving credit facility to April 2029, with a new facility of $915,000,000 bearing interest at SOFR plus 1.20%[4] - A $400,000,000 refinancing of the office condominium portion of 731 Lexington Avenue was completed, carrying a fixed rate of 5.04% and maturing in October 2028[4] - A joint venture modified the terms of the $625,000,000 mortgage loan on 85 Tenth Avenue, deferring interest payments until December 2026[4] - The company has a total of $5,466,550 in debt subject to interest rate swaps and a 1.00% SOFR interest rate cap[51] - The total variable rate debt subject to interest rate caps amounts to $844,700[51] - Fixed rate debt per loan agreements is reported at $3,349,954[51] - The company has a total of $10,066,342 in variable rate debt not subject to interest rate swaps or caps[51] - The 555 California Street mortgage loan has a notional amount of $840,000 with an all-in swapped rate of 6.03%[51] - The unsecured revolving credit facility has a balance of $575,000 with an interest rate of 3.88%[51] - The unsecured term loan has a total of $800,000 with varying interest rates across different maturities[51] - The 1290 Avenue of the Americas mortgage loan has a balance of $665,000 and an effective interest rate of 5.94%[51] - The company has a total of $500,000 in the PENN 11 mortgage loan with an interest rate of 6.28%[51] - The 100 West 33rd Street mortgage loan has a balance of $480,000 with an interest rate of 5.26%[51] - Total secured debt amounts to $5,708.919 million, with a weighted average interest rate of 4.56%[53] - The company has a total unsecured debt of $2,575 million, with a weighted average interest rate of 3.40%[53] - The company has a total debt of $8,283.919 million, with fixed rate debt amounting to $7,066.850 million[53] - The company has a $1.25 billion unsecured revolving credit facility due in December 2027, with an interest rate of 3.88%[53] - The company’s largest secured debt is $1,200 million for 555 California Street, with an interest rate of 6.36%[53] Financial Performance - Total revenues for Q3 2024 were $443,255,000, a decrease of 1.6% from $450,995,000 in Q3 2023[8] - Net loss attributable to common shareholders for Q3 2024 was $(19,154,000), compared to a net income of $52,846,000 in Q3 2023[8] - FFO attributable to common shareholders plus assumed conversions, as adjusted, for Q3 2024 was $102,755,000, down from $127,241,000 in Q3 2023, representing a decrease of 19.2%[9] - Per diluted share FFO for Q3 2024 was $0.52, compared to $0.66 in Q3 2023, reflecting a decline of 21.2%[9] - Total revenues for the nine months ended September 30, 2024, were $1,329,896, a decrease of $39,381 compared to $1,369,277 in 2023[15] - Net income attributable to common shareholders for the nine months ended September 30, 2024, was $7,072, down from $104,391 in 2023, representing a decline of 93.2%[17] - Operating expenses increased to $691,753 for the nine months ended September 30, 2024, compared to $685,233 in 2023, reflecting a rise of $6,520[15] - Total rental revenues for the nine months ended September 30, 2024, were $1,170,343, down from $1,215,994 in 2023, a decrease of $45,651[15] - The company reported a net loss of $(19,468) for the three months ended September 30, 2023, compared to a net income of $59,570 in the same period last year[11] - The company reported a net gain on the sale of real estate of $(53.045) million for the three months ended September 30, 2023[79] - The company reported a total of $2,682,672,000 in investments in partially owned entities, with a share of debt amounting to $1,993,607,000[39] Asset Management and Property Performance - The company has a carrying value of $54,196,000 for the 606 Broadway property after an impairment charge recorded in Q4 2023[4] - The company has extended leases covering approximately 947,000 square feet at 731 Lexington Avenue for an additional eleven years to February 2040[7] - The company reported a cash basis NOI at share of $852,619,000 for the nine months ended September 30, 2023, compared to $723,440,000 in the prior year, indicating a 17.9% increase[25] - The NOI at share for the New York segment for the three months ended September 30, 2024, was $265,491,000, down from $280,995,000 in the same period of 2023, a decrease of 5.5%[24] - The company’s share of NOI from partially owned entities increased to $210,942,000 for the nine months ended September 30, 2023, compared to $202,043,000 in the previous year, marking a growth of 4.4%[22] - The company has active development projects in the PENN District with a total rentable square footage of 1,795,000 and a projected incremental cash yield of 9.5%[27] - The total future opportunities for development amount to 4,306,000 square feet, including various properties in New York and Chicago[27] - The average initial rent per square foot for New York office leases signed in the three months ended September 30, 2024, was $92.32, with a weighted average lease term of 9.7 years[29] - Tenant improvements and leasing commissions for New York office leases were $96.29 per square foot, representing 10.8% of the initial rent[29] - The total square footage as of September 30, 2024, is 34,800 thousand square feet, a slight decrease from 34,808 thousand square feet on June 30, 2024[57] - The occupancy rate in New York as of September 30, 2024, is 86.7%, down from 88.3% on June 30, 2024[59] - The total number of residential units under Vornado's ownership interest is 769, with an occupancy rate of 96.5% as of September 30, 2024[60] - The total annualized escalated rent for the PENN District is $8,841,000, with 7,074,000 in properties currently in service[64] - The total annualized escalated rent for Midtown East is $1,932,000, with an occupancy rate of 100.0% for retail spaces[64] - The total annualized escalated rent for Midtown West is $1,163,000, with an occupancy rate of 100.0% for retail spaces[66] - The total annualized escalated rent for Times Square properties is $61,200,000 with an occupancy rate of 99.3%[69] - The total annualized escalated rent for New York segment is $2,107,800, with an occupancy rate of 87.2%[71] Operational Metrics - The FFO payout ratio based on FFO attributable to common shareholders plus assumed conversions was 18.9% for Q3 2024[8] - The company reported a decrease in lease expirations and net rent commencements contributing to a $16.7 million decrease in FFO[9] - The company aims to utilize non-GAAP measures like NOI at share and FFO to assess unlevered performance and make investment decisions[78] - FAD (non-GAAP) for the three months ended September 30, 2024, was $79,547, compared to $91,821 for the same period in 2023, reflecting a decrease of 13.8%[82] - The FAD payout ratio for the nine months ended September 30, 2024, was 25.2%[82] - General and administrative expenses for the three months ended September 30, 2024, were $35,511, slightly down from $35,838 in the same period of 2023[83] - Depreciation and amortization expense for the nine months ended September 30, 2024, was $334,439, compared to $324,076 for the same period in 2023, an increase of 3.9%[83] - Consolidated total NOI for the three months ended September 30, 2024, was $220,886, down from $217,258 in the same period of 2023[84] - Vornado's share of NOI at cash basis for the three months ended September 30, 2024, was $272,298, compared to $278,015 in the same period of 2023, a decrease of 2.5%[84] Market and Tenant Information - The largest tenant, Meta Platforms, Inc., occupies 1,176,828 square feet, contributing $139,999 thousand or 7.9% of total annualized escalated rents[55] - The second-largest tenant, IPG and affiliates, occupies 1,029,557 square feet, contributing $69,304 thousand or 4.0% of total annualized escalated rents[55] - The company has a total of 30 tenants, with the top 10 accounting for a significant portion of the rental income[55] - Major tenants in the PENN District include Cisco, Bank of America, and Starbucks, contributing to a diverse tenant mix[63] - Major tenants in Times Square include U.S. Polo, Forever 21, and Disney[69] - The average monthly rent per unit in New York increased to $4,689 as of September 30, 2024, from $4,624 on June 30, 2024[60] - The average escalated annual rent PSF for Midtown East is $67.46 for office and $200.79 for retail[64] - The average escalated annual rent PSF for Midtown West is $100.62 for office and $253.55 for retail[66] - The company reported a weighted average escalated annual rent PSF of $102.22 across its properties[66]