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Mar 31, 2023
Vornado Q1 2023 Earnings Report
Vornado's financial performance declined in the first quarter of 2023 compared to the previous year.
Key Takeaways
Vornado Realty Trust reported a decrease in net income attributable to common shareholders for Q1 2023, with $5,168,000, or $0.03 per diluted share, compared to $26,478,000, or $0.14 per diluted share in the prior year's quarter. FFO attributable to common shareholders plus assumed conversions also decreased to $119,083,000, or $0.61 per diluted share, from $154,908,000, or $0.80 per diluted share in the same period last year.
Net income attributable to common shareholders decreased to $5,168,000, or $0.03 per diluted share.
Non-GAAP net income attributable to common shareholders was $2,373,000, or $0.01 per diluted share.
FFO attributable to common shareholders plus assumed conversions decreased to $119,083,000, or $0.61 per diluted share.
The company postponed dividends on its common shares until the end of 2023 and authorized a share repurchase program of up to $200,000,000.
Vornado
Vornado
Vornado Revenue by Geographic Location
Revenue by Geographic Location
New York Revenue
CapyFin.com Forward Guidance
Vornado plans to use cash retained from dividends or asset sales to reduce debt and/or fund share repurchases.
Positive Outlook
- Vornado completed agreements with Citadel for 350 Park Avenue.
- Citadel master leases 350 Park Avenue for ten years with an initial annual net rent of $36,000,000.
- Vornado entered into a joint venture with Rudin to purchase 39 East 51st Street.
- Board of Trustees has authorized the repurchase of up to $200,000,000 of its outstanding common shares under a newly established share repurchase program.
- Alexander's anticipates the closing of the sale in the second quarter of 2023 and will recognize a financial statement gain of approximately $54,000,000.
Challenges Ahead
- Vornado will postpone dividends on its common shares until the end of 2023.
- Increase in interest rates and inflation.
- Continuing effect of the COVID-19 pandemic on our business.
- Financial condition, results of operations, cash flows, operating performance and the effect that these factors have had and may continue to have on our tenants.
- Global, national, regional and local economies and financial markets and the real estate market in general.