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Mar 31, 2020
Vornado Q1 2020 Earnings Report
Vornado's financial performance was impacted by the COVID-19 pandemic, resulting in decreased net income and FFO compared to the prior year's quarter.
Key Takeaways
Vornado Realty Trust reported a decrease in net income attributable to common shareholders for the quarter ended March 31, 2020, with $4,963,000 or $0.03 per diluted share, compared to $181,488,000, or $0.95 per diluted share, for the prior year's quarter. Funds From Operations (FFO) attributable to common shareholders plus assumed conversions (non-GAAP) for the quarter was $130,360,000, or $0.68 per diluted share, compared to $247,684,000, or $1.30 per diluted share, for the prior year's quarter. The company's properties were adversely affected by the COVID-19 pandemic and preventive measures, including retail store closures, remote work for office tenants, temporary closure of the Hotel Pennsylvania, and postponement of trade shows at theMART.
Net income attributable to common shareholders decreased to $4.96 million, or $0.03 per diluted share.
Adjusted net income attributable to common shareholders (non-GAAP) was $20.23 million, or $0.11 per diluted share.
FFO attributable to common shareholders plus assumed conversions (non-GAAP) decreased to $130.36 million, or $0.68 per diluted share.
Adjusted FFO attributable to common shareholders plus assumed conversions (non-GAAP) was $137.57 million, or $0.72 per diluted share.
Revenue by Geographic Location
Forward Guidance
The impact of COVID-19 on Vornado's financial condition and operating results remains highly uncertain but the impact could be material.
Positive Outlook
- Closings on the sale of condominium units at 220 Central Park South have continued.
- Collected substantially all of the rent due for March 2020.
- Collected 90% of rent due from our office tenants for the month of April 2020.
- Collected 53% of the rent due from our retail tenants for the month of April 2020.
- Aggregate rent collection was 83%.
Challenges Ahead
- Properties, concentrated in New York City, Chicago and San Francisco, have been adversely affected as a result of the COVID-19 pandemic.
- Substantially all retail tenants have closed stores and many are seeking rent relief.
- Substantially all office tenants are working remotely.
- The Hotel Pennsylvania has been temporarily closed.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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