Vornado(VNO) - 2025 Q2 - Quarterly Results

Business Developments The company engaged in significant transactions, including a major lease with NYU and several property dispositions, while actively managing its debt through repayments and refinancings Major Transactions & Dispositions The company executed several significant transactions, including a 70-year master lease with NYU for 770 Broadway generating $935 million in prepaid rent, which was used to repay a $700 million mortgage. An arbitration panel set the annual ground rent for PENN 1 at $15 million, a decision the ground lessor is challenging. Vornado also completed multiple dispositions, including the sale of its JV interest in a portion of 666 Fifth Avenue to UNIQLO for $350 million and the sale of condominium units at 220 Central Park South and Canal Street - Completed a 70-year master lease with New York University (NYU) for 1,076,000 sq. ft. at 770 Broadway, with NYU making a prepaid lease payment of $935 million, a portion of which was used to repay the property's $700 million mortgage, resulting in a gain on sales-type lease of $803.2 million[5][6] - An arbitration panel determined the annual ground rent for the PENN 1 land parcel to be $15 million for the 25-year period starting June 17, 2023, leading to a reversal of $17.2 million in previously accrued rent expense, though the ground lessor is currently challenging this determination in court[7][8][9] Summary of Key Dispositions (Six Months Ended June 30, 2025) | Property | Transaction Detail | Net Proceeds / Value | Financial Statement Gain | | :--- | :--- | :--- | :--- | | 666 Fifth Avenue (JV) | Sale of UNIQLO flagship store portion | $342.0M | $76.2M | | 220 Central Park South | Sale of two condominium units | $24.8M | $13.7M | | Canal Street Condos | Sale of six residential units | $21.6M | $10.3M | | 512 West 22nd Street (JV) | Agreement to sell office building | $205.0M (Gross) | ~$11.0M (Expected) | | 49 West 57th Street (JV) | Sale of commercial condominium | $8.7M | $2.5M | Financing Activity The company actively managed its debt profile by repaying $450 million of senior unsecured notes. Key refinancing activities included a $450 million loan for 1535 Broadway, a $675 million refinancing for Independence Plaza at a higher interest rate, and a $450 million refinancing for PENN 11. Additionally, Vornado achieved a sustainability-linked interest rate reduction on its credit facilities - Repaid $450 million of 3.50% senior unsecured notes on their January 15, 2025 maturity date[16] Key Financing Activities | Property | Amount | Interest Rate | Maturity | | :--- | :--- | :--- | :--- | | 1535 Broadway (JV) | $450M | 6.90% (Fixed) | May 2030 | | Independence Plaza (JV) | $675M | 5.84% (Fixed) | June 2030 | | PENN 11 | $450M | 6.35% (Fixed) | August 2030 | - Qualified for a sustainability margin adjustment, reducing interest rates by 0.05% on its unsecured term loan and 0.04% on its revolving credit facilities[18] Financial Information The company reported a significant increase in Q2 2025 net income driven by a major lease transaction, while FFO and NOI metrics showed mixed performance, and the balance sheet reflected reduced liabilities and increased liquidity Financial Highlights For Q2 2025, Vornado reported a significant increase in net income attributable to common shareholders to $743.8 million, or $3.70 per diluted share, primarily driven by a major asset transaction. Adjusted FFO per diluted share was $0.56, a slight decrease from $0.57 in Q2 2024. The company's total liquidity stood at $2.92 billion at the end of the quarter Q2 2025 Key Financial Metrics vs. Q2 2024 | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Net income attr. to common shareholders | $743.8M | $35.3M | | Per diluted share | $3.70 | $0.18 | | FFO per diluted share, as adjusted (non-GAAP) | $0.56 | $0.57 | | Total Liquidity | $2,923M | $2,677M | - The company anticipates continuing its recent policy of paying one common share dividend in the fourth quarter of 2025, subject to Board approval[22] FFO, As Adjusted Bridge Adjusted FFO per share for Q2 2025 was $0.56, a slight decrease from $0.57 in Q2 2024. The year-over-year change was influenced by several factors, with a positive impact from changes in the tax assessed value of THE MART ($9.2M) being offset by lower interest income (-$5.8M), asset sales (-$3.3M), and other net items (-$3.9M) FFO, As Adjusted Bridge - Q2 2025 vs. Q2 2024 (in millions) | Description | Amount | | :--- | :--- | | FFO, as adjusted - Q2 2024 | $112.8 | | Changes in THE MART tax value | $9.2 | | Interest income | ($5.8) | | Asset sales | ($3.3) | | Variable businesses (signage) | $2.4 | | Other, net | ($2.0) | | FFO, as adjusted - Q2 2025 | $113.3 | Net Operating Income, EBITDAre, FFO and FAD In Q2 2025, NOI at share was $277.7 million, slightly down from $280.2 million in Q2 2024. On a cash basis, NOI at share saw a more significant decrease to $231.7 million from $279.6 million year-over-year. FFO attributable to common shareholders was $120.9 million, compared to $148.9 million in the prior-year quarter. Funds Available for Distribution (FAD) was negative $6.6 million, a sharp decline from $87.8 million in Q2 2024, primarily due to the timing of payments for tenant improvements and leasing commissions Key Performance Metrics (Q2 2025 vs Q2 2024) | Metric (in thousands) | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | NOI at share | $277,673 | $280,171 | | NOI at share - cash basis | $231,719 | $279,590 | | EBITDAre, as adjusted | $257,583 | $265,832 | | FFO attributable to common shareholders | $120,928 | $148,944 | | FAD | ($6,631) | $87,783 | - The significant increase in recurring tenant improvements and leasing commissions to $104.2 million in Q2 2025 from $53.9 million in Q2 2024 was a primary driver of the decline in FAD[27][28] Consolidated Balance Sheets As of June 30, 2025, Vornado's total assets stood at $15.61 billion, a decrease from $16.00 billion at year-end 2024. The decline was mainly driven by a reduction in investments in partially owned entities. Total liabilities decreased significantly to $8.59 billion from $9.83 billion, primarily due to reductions in mortgages payable and senior unsecured notes. Cash and cash equivalents increased to $1.20 billion from $734 million Consolidated Balance Sheet Summary (in thousands) | Account | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Total Assets | $15,608,496 | $15,998,608 | | Cash and cash equivalents | $1,204,863 | $733,947 | | Investments in partially owned entities | $2,003,206 | $2,691,478 | | Total Liabilities | $8,594,438 | $9,826,739 | | Mortgages payable, net | $4,977,526 | $5,676,014 | | Senior unsecured notes, net | $746,588 | $1,195,914 | | Shareholders' Equity | $6,092,098 | $5,158,242 | Net Income Attributable to Common Shareholders (Consolidated and by Segment) For Q2 2025, net income attributable to common shareholders was $743.8 million, a substantial increase from $35.3 million in Q2 2024. This was primarily due to an $803.2 million gain on a sales-type lease. For the six months ended June 30, 2025, net income was $830.7 million compared to $26.2 million in the prior year period. The New York segment was the main driver of income, reporting $860.7 million attributable to Vornado Realty L.P. in Q2 2025, while the Other segment posted a loss - A gain on a sales-type lease of $803.2 million in Q2 2025 was the primary driver for the significant increase in net income compared to the prior year[31] Net Income Attributable to Common Shareholders (in thousands) | Period | 2025 | 2024 | | :--- | :--- | :--- | | Three Months Ended June 30 | $743,819 | $35,260 | | Six Months Ended June 30 | $830,661 | $26,226 | - By segment, for the six months ended June 30, 2025, the New York segment generated net income of $1,004.7 million attributable to Vornado Realty L.P., while the Other segment incurred a net loss of $70.2 million[35] Net Operating Income at Share and Net Operating Income at Share - Cash Basis by Segment and Subsegment In Q2 2025, total NOI at share was $277.7 million, with the New York segment contributing $230.6 million. On a cash basis, total NOI at share was $231.7 million, with New York contributing $182.6 million. The Other segment's NOI was significantly boosted by a property tax reassessment at THE MART, which increased its NOI to $25.2 million from $16.1 million in Q2 2024 NOI at Share by Segment - Q2 2025 (in thousands) | Segment | NOI at Share | NOI at Share - Cash Basis | | :--- | :--- | :--- | | New York | $230,579 | $182,605 | | Office | $173,104 | $127,579 | | Retail | $42,798 | $39,692 | | Other | $47,094 | $49,114 | | THE MART | $25,197 | $25,258 | | 555 California Street | $18,686 | $20,684 | | Total | $277,673 | $231,719 | - The 2025 results for THE MART include a positive impact from the reversal of a prior period tax accrual due to a property tax reassessment[38] - The New York Office cash basis NOI includes the impact of a $22.4 million payment for prior period PENN 1 ground rent following a recent rent reset determination[38] Same Store NOI at Share and Same Store NOI at Share - Cash Basis For Q2 2025 compared to Q2 2024, total same-store NOI at share increased by 5.4%, driven by a strong 57.7% increase at THE MART due to a tax reassessment. However, on a cash basis, total same-store NOI decreased by 4.8%, with the New York portfolio declining by 8.5%. This cash basis decrease was primarily attributed to the PENN 1 ground rent increase and GAAP rent commencing on new leases that are still in free rent periods Same Store NOI Growth % (Q2 2025 vs Q2 2024) | Portfolio | Same Store NOI at Share | Same Store NOI at Share - Cash Basis | | :--- | :--- | :--- | | Total | 5.4% | (4.8)% | | New York | 1.8% | (8.5)% | | THE MART | 57.7% | 50.6% | | 555 California Street | 3.1% | (12.7)% | - The strong same-store NOI growth at THE MART was driven by the reversal of a prior period tax accrual from a property tax reassessment[41] - The decrease in New York's same-store cash NOI was primarily due to the current period PENN 1 ground rent increase and GAAP rent commencing on new leases with free rent periods[42] Leasing Activity and Lease Expirations The company executed significant leasing activity in its New York portfolio with positive rent growth, while managing a staggered lease expiration schedule with notable maturities in 2027 and 2028 Leasing Activity During the six months ended June 30, 2025, the company leased 2.2 million square feet in its New York Office portfolio, achieving a 10.7% increase in GAAP basis rent and a 7.7% increase on a cash basis for second-generation space. In Q2 2025 alone, 1.5 million square feet of New York office space was leased, with an 11.8% GAAP rent increase. The leasing statistics exclude the significant 1.1 million square foot master lease to NYU Leasing Activity - Six Months Ended June 30, 2025 | Segment | Sq. Ft. Leased (Our Share) | GAAP Rent % Change | Cash Rent % Change | | :--- | :--- | :--- | :--- | | New York Office | 2,099,000 | 10.7% | 7.7% | | New York Retail | 66,000 | 21.8% | 8.7% | | THE MART | 210,000 | (4.7)% | (7.1)% | | 555 California Street | 155,000 | 19.8% | 3.1% | Leasing Activity - Three Months Ended June 30, 2025 | Segment | Sq. Ft. Leased (Our Share) | GAAP Rent % Change | Cash Rent % Change | | :--- | :--- | :--- | :--- | | New York Office | 1,414,000 | 11.8% | 8.7% | | New York Retail | 48,000 | 7.9% | 0.3% | | THE MART | 127,000 | (4.4)% | (3.7)% | - Leasing statistics, other than total square feet leased, exclude the impact of the 1,076,000 square foot master lease to NYU at 770 Broadway[45][48] Lease Expirations As of June 30, 2025, the company faces a manageable near-term lease expiration schedule. For the remainder of 2025, 2.0% of total square footage is set to expire. The most significant expiration years are 2027 and 2028, with 8.4% and 9.4% of total square footage expiring, respectively. The New York Office portfolio has notable expirations in 2027 (1.35M sq. ft.) and 2029 (1.14M sq. ft.) Our Share of Square Feet of Expiring Leases (% of Total) | Year | % of Total Expiring | | :--- | :--- | | 2025 (Remaining) | 2.0% | | 2026 | 6.5% | | 2027 | 8.4% | | 2028 | 9.4% | | 2029 | 7.6% | | 2030 | 5.3% | - The New York Office portfolio has 1.35 million sq. ft. expiring in 2027 and 1.01 million sq. ft. expiring in 2028, representing 9.0% and 6.8% of its annualized escalated rent, respectively[57] - THE MART has a significant lease expiration in 2028, with 713,000 sq. ft. (24.5% of its annualized rent) scheduled to expire[60] Capital Expenditures and Re/Development The company incurred substantial capital expenditures for recurring items and development projects, with active redevelopments in the PENN District and significant future growth opportunities Capital Expenditures For the six months ended June 30, 2025, Vornado incurred $198.5 million in total capital expenditures and leasing commissions. This included $157.9 million for recurring items such as tenant improvements and leasing commissions, and $40.6 million in non-recurring capital expenditures. Additionally, the company spent $82.1 million on development and redevelopment projects, with the largest portion ($43.7 million) allocated to PENN 2 Capital & Development Expenditures (Six Months Ended June 30, 2025) | Category | Total Company (in thousands) | | :--- | :--- | | Recurring Capital Expenditures | $157,885 | | Tenant improvements | $105,224 | | Leasing commissions | $22,612 | | Non-recurring Capital Expenditures | $40,634 | | Total Capital Expenditures | $198,519 | | Development/Redevelopment Expenditures | $82,064 | | PENN 2 | $43,672 | Development/Redevelopment - Active Projects and Future Opportunities Vornado's active development pipeline is focused on the PENN District and Sunset Pier 94 Studios, with total remaining expenditures of $95.4 million at its share. The PENN 2 redevelopment is nearing completion with a projected 10.2% incremental cash yield. The company also holds a substantial pipeline of future opportunities, including the 2.1 million sq. ft. Hotel Pennsylvania site (PENN 15) and the 1.4 million sq. ft. 350 Park Avenue assemblage, which is subject to an option agreement with an affiliate of Kenneth C. Griffin Active Development Projects (at Vornado's share) | Project | Budget (in thousands) | Remaining Expenditures (in thousands) | Stabilization Year | Projected Incremental Cash Yield | | :--- | :--- | :--- | :--- | :--- | | PENN 2 | $750,000 | $32,116 | 2026 | 10.2% | | Sunset Pier 94 Studios (49.9%) | $125,000 | $42,195 | 2026 | 10.3% | - Future development opportunities total over 4.3 million zoning square feet, highlighted by the Hotel Pennsylvania site (PENN 15) and the 350 Park Avenue assemblage[65] - The 350 Park Avenue site is subject to an option agreement with an affiliate of Kenneth C. Griffin, which can either acquire a 60% JV interest valuing the site at $1.2 billion or purchase it outright for $1.4 billion[67] Unconsolidated Joint Ventures For the six months ended June 30, 2025, Vornado's share of net income from unconsolidated joint ventures was $113.6 million, a significant increase from $64.2 million in the prior year period. This was largely driven by a $76.2 million net gain on sale within the Fifth Avenue and Times Square JV. The company's share of NOI from these JVs was $133.3 million for the first half of 2025, slightly down from $138.7 million in 2024 Unconsolidated Joint Ventures For the six months ended June 30, 2025, Vornado's share of net income from unconsolidated joint ventures was $113.6 million, a significant increase from $64.2 million in the prior year period. This was largely driven by a $76.2 million net gain on sale within the Fifth Avenue and Times Square JV. The company's share of NOI from these JVs was $133.3 million for the first half of 2025, slightly down from $138.7 million in 2024 Our Share of JV Performance (Six Months Ended June 30) | Joint Venture | Net Income (Loss) 2025 (in thousands) | Net Income (Loss) 2024 (in thousands) | NOI 2025 (in thousands) | NOI 2024 (in thousands) | | :--- | :--- | :--- | :--- | :--- | | Fifth Avenue and Times Square JV | $100,694 | $39,304 | $48,879 | $57,068 | | 280 Park Avenue | ($8,257) | $15,426 | $17,251 | $15,592 | | Alexander's | $5,842 | $7,803 | $17,824 | $20,910 | | Total | $113,648 | $64,228 | $133,338 | $138,667 | - The increase in net income from the Fifth Avenue and Times Square JV was primarily due to a $76.2 million gain on the sale of a portion of the 666 Fifth Avenue condominium[72][73] Debt and Capitalization The company maintains a diversified debt profile of $9.18 billion with a 4.75% weighted average interest rate, improved leverage, strong covenant compliance, and a staggered maturity schedule, actively utilizing hedging instruments to manage interest rate risk Debt Analysis As of June 30, 2025, Vornado's pro rata share of total debt was $9.18 billion with a weighted average interest rate of 4.75%. The company's Net Debt to EBITDAre, as adjusted, improved significantly to 7.2x from 8.6x at year-end 2024. The proportion of unsecured debt stood at 23% of the total debt Debt Summary (at pro rata share) | Metric | As of June 30, 2025 | | :--- | :--- | | Total Debt | $9,178,801,000 | | Weighted Average Interest Rate | 4.75% | | Fixed Rate Debt | $8,399,750,000 (4.60%) | | Variable Rate Debt | $779,051,000 (6.36%) | - The Net Debt to EBITDAre, as adjusted ratio improved to 7.2x for the trailing twelve months ended June 30, 2025, down from 8.6x for the period ended June 30, 2024[75] Corporate Covenant Ratios and Credit Ratings As of June 30, 2025, the company was in compliance with all its corporate debt covenants, maintaining significant headroom. For its unsecured credit facilities, the total outstanding debt to total assets ratio was 33%, well below the required 60% threshold. The company's credit ratings are Ba1 from Moody's (Stable), BBB- from S&P (Negative), and BB+ from Fitch (Stable) Key Covenant Ratios (Unsecured Credit Facilities) | Covenant | Required | As of June 30, 2025 | | :--- | :--- | :--- | | Total outstanding debt/total assets | < 60% | 33% | | Secured debt/total assets | < 50% | 23% | | Fixed charge coverage | > 1.40 | 1.97 | | Unencumbered assets/unsecured debt | > 150% | 490% (Unsecured Notes) | Credit Ratings | Agency | Rating | Outlook | | :--- | :--- | :--- | | Moody's | Ba1 | Stable | | S&P | BBB- | Negative | | Fitch | BB+ | Stable | Capital Structure As of June 30, 2025, Vornado's total market capitalization was approximately $18.4 billion. This was composed of $9.2 billion in debt (at share), $1.2 billion in perpetual preferred equity, and $8.0 billion in common equity Total Market Capitalization as of June 30, 2025 (in thousands) | Component | Amount | | :--- | :--- | | Debt (at share) | $9,178,801 | | Perpetual Preferred Equity | $1,223,035 | | Common Equity | $8,032,771 | | Total Market Capitalization | $18,434,607 | Debt Maturities The company has a staggered debt maturity profile. At its pro rata share, $1.1 billion (11.6%) of debt matures in the remainder of 2025, followed by $1.7 billion (18.1%) in 2026 and $2.8 billion (30.9%) in 2027. The maturity schedule assumes the exercise of as-of-right extension options Debt Maturities at Share (in thousands) | Year | Amount Maturing | % of Total Debt | | :--- | :--- | :--- | | 2025 (Remaining) | $1,069,066 | 11.6% | | 2026 | $1,660,963 | 18.1% | | 2027 | $2,832,116 | 30.9% | | 2028 | $1,944,095 | 21.2% | | 2029 | $365,628 | 4.0% | | Thereafter | $1,306,933 | 14.2% | - The 2025 maturities include the $74.1 million non-recourse mortgage loan on 606 Broadway, which matured in September 2024 and is in default[88] Debt Detail (Consolidated and Unconsolidated) The company's consolidated debt totals $7.1 billion, including major secured loans on properties like 555 California Street ($1.2B) and 1290 Avenue of the Americas ($950M), as well as $2.1 billion in unsecured debt. Unconsolidated debt totals $6.7 billion, with significant loans on properties such as 280 Park Avenue ($1.075B) and 650 Madison Avenue ($800M) - Total consolidated debt as of June 30, 2025, was $7.12 billion, comprising $5.0 billion in secured debt and $2.13 billion in unsecured debt[91] - Total unconsolidated debt (at 100%) was $6.71 billion, with Vornado's pro rata share amounting to $2.74 billion[95] Hedging Instruments As of June 30, 2025, Vornado actively uses hedging instruments to manage interest rate risk. Of its $9.18 billion total debt at share, $5.27 billion is subject to interest rate swaps or a 1.00% SOFR cap, and an additional $342.7 million is subject to other interest rate caps. Approximately $3.13 billion is fixed-rate debt per loan agreements, leaving only $436.4 million (5% of total debt) of unhedged variable rate debt Debt Hedging Profile (at share) | Hedging Status | Amount (in thousands) | | :--- | :--- | | Debt subject to interest rate swaps and 1.00% SOFR cap | $5,272,500 | | Variable rate debt subject to other interest rate caps | $342,657 | | Fixed rate debt per loan agreements | $3,127,250 | | Variable rate debt not subject to swaps or caps | $436,394 | | Total debt at share | $9,178,801 | Property Statistics The company's portfolio comprises 27.2 million square feet, primarily in New York, with a diversified tenant base, varied occupancy rates across segments, and several key properties subject to ground leases Top 30 Tenants Vornado's tenant base is concentrated among several large corporations, primarily in the technology, media, and finance sectors. The top 30 tenants account for 46.6% of total annualized escalated rents. The top five tenants are Meta Platforms, IPG, Citadel, New York University, and Madison Square Garden, collectively representing 17.5% of total rents Top 5 Tenants by Annualized Escalated Rents | Tenant | % of Total Annualized Rents | | :--- | :--- | | Meta Platforms, Inc. | 4.6% | | IPG and affiliates | 3.7% | | Citadel | 3.5% | | New York University | 3.2% | | Madison Square Garden & Affiliates | 2.5% | Square Footage As of June 30, 2025, Vornado's portfolio at its share consists of 27.2 million square feet. The New York segment comprises the majority with 20.9 million square feet, while the Other segment, including THE MART and 555 California Street, accounts for 6.3 million square feet. The portfolio is primarily composed of office space (21.1 million sq. ft.) and retail (3.2 million sq. ft.) Portfolio Square Footage at Vornado's Share (in thousands) | Segment | Total Sq. Ft. | Office | Retail | | :--- | :--- | :--- | :--- | | New York | 20,857 | 17,521 | 2,200 | | Other | 6,316 | 3,568 | 1,007 | | Total | 27,173 | 21,089 | 3,207 | Occupancy and Residential Statistics As of June 30, 2025, occupancy in the New York portfolio was 85.2%, an increase from 83.5% in the prior quarter, which was impacted by PENN 2 being placed into service. THE MART's occupancy was stable at 78.2%, while 555 California Street's occupancy was 92.3%. The residential portfolio maintained high occupancy at 95.7% with an average monthly rent of $4,879 per unit Portfolio Occupancy Rates | Portfolio | June 30, 2025 | March 31, 2025 | June 30, 2024 | | :--- | :--- | :--- | :--- | | New York | 85.2% | 83.5% | 88.3% | | THE MART | 78.2% | 78.2% | 76.9% | | 555 California Street | 92.3% | 92.3% | 94.5% | - The decrease in New York occupancy from Q4 2024 was due to PENN 2 being placed into service during Q1 2025[107] Ground Leases The company has several significant properties subject to ground leases, most notably PENN 1. The annual rent for the PENN 1 land was recently reset to $15 million, though this is under dispute by the ground lessor. Other major properties on ground leases include The Farley Building, 888 Seventh Avenue, and 330 West 34th Street - The PENN 1 land ground lease has a current annual rent of $15.0 million, with the next renewal option in 2073 and a final expiration in 2098, though the rent amount is currently being disputed in court by the ground lessor[109] Property Table The report provides a detailed property-by-property breakdown for the New York and Other segments. For each property, it lists ownership percentage, occupancy, weighted average rent, total square footage, encumbrances, and major tenants. Key assets detailed include the PENN District portfolio, Park Avenue properties like 280 Park Avenue, THE MART in Chicago, and 555 California Street in San Francisco - The New York portfolio totals 26.3 million square feet with an overall occupancy of 85.8% and is encumbered by $10.6 billion in debt[124] - THE MART in Chicago is 3.7 million square feet with 78.2% occupancy and is unencumbered[130] - The 555 California Street complex in San Francisco is 1.8 million square feet, 92.3% occupied, and carries a $1.2 billion mortgage[130] Executive Officers and Research Coverage This section lists the key corporate officers of Vornado Realty Trust, including Chairman and CEO Steven Roth and President and CFO Michael J. Franco. It also provides a list of investment banks and analysts that provide research coverage on the company, such as Bank of America, Evercore ISI, and Morgan Stanley Appendix: Definitions and Non-GAAP Reconciliations This appendix provides essential definitions for non-GAAP financial measures and detailed reconciliations to their most directly comparable GAAP counterparts, aiding in comprehensive financial analysis Definitions This section provides definitions for the non-GAAP financial measures used throughout the report. These include Net Operating Income (NOI) at Share, Same Store NOI, Funds From Operations (FFO), Funds Available For Distribution (FAD), Earnings Before Interest, Taxes, Depreciation and Amortization for Real Estate (EBITDAre), and Net Debt to EBITDAre, as adjusted. The definitions clarify how each measure is calculated and why management believes it is useful for investors - Defines key non-GAAP metrics such as FFO (computed per NAREIT standards), FAD, NOI at Share, and EBITDAre, explaining their calculation and utility for performance assessment[143][145][146][147] Reconciliations This section contains detailed tables that reconcile the non-GAAP financial measures presented in the report to their most directly comparable GAAP measures. Key reconciliations include Net Income to FFO, FFO to FAD, Net Income to EBITDAre, and Net Income to NOI. It also provides reconciliations for same-store NOI calculations and consolidated debt - Provides detailed quantitative reconciliations for non-GAAP measures, including Net Income to FFO, FFO to FFO as adjusted, FFO to FAD, and Net Income to EBITDAre and NOI[150][151][152][155]