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Vornado
🇺🇸 NYSE:VNO
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Jun 30, 2023

Vornado Q2 2023 Earnings Report

Vornado's financial performance reflected a mix of strategic dispositions, leasing activities, and financing restructurings.

Key Takeaways

Vornado Realty Trust reported net income of $46.4 million, or $0.24 per diluted share, for the quarter ended June 30, 2023. The company completed the sale of the Rego Park III land parcel and restructured the 697-703 Fifth Avenue mortgage loan.

Net income attributable to common shareholders was $46.4 million, or $0.24 per diluted share.

FFO attributable to common shareholders plus assumed conversions was $144.1 million, or $0.74 per diluted share.

Completed the purchase of 39 East 51st Street for $40 million through a joint venture.

Completed a restructuring of the 697-703 Fifth Avenue $421 million non-recourse mortgage loan, reducing it to $355 million.

Total Revenue
$472M
Previous year: $453M
+4.2%
EPS
$0.72
Previous year: $0.83
-13.3%
NY Office Occupancy
224,000%
The Mart Occupancy
29,000%
555 California St Occupancy
4,000%
Gross Profit
$250M
Previous year: $231M
+8.0%
Cash and Equivalents
$1.13B
Previous year: $988M
+14.7%
Total Assets
$16.4B
Previous year: $17.2B
-4.2%

Vornado

Vornado

Vornado Revenue by Geographic Location

Forward Guidance

Vornado announced the postponement of dividends on its common shares until the end of 2023, and authorized the repurchase of up to $200,000,000 of its outstanding common shares.

Positive Outlook

  • Cash retained from dividends or from asset sales will be used to reduce debt and/or to fund the share repurchase program.
  • The Board of Trustees has authorized the repurchase of up to $200,000,000 of its outstanding common shares.
  • Completed agreements with Citadel for 350 Park Avenue and 40 East 52nd Street.
  • Vornado/Rudin JV completed the purchase of 39 East 51st Street for $40,000,000.
  • Completed a $129,250,000 refinancing of 512 West 22nd Street.

Challenges Ahead

  • The company announced the postponement of dividends on its common shares until the end of 2023.
  • There can be no assurance that the PENN District projects will be completed, completed on schedule or within budget.
  • There can be no assurance that the Company will be successful in leasing the properties on the expected schedule or at the assumed rental rates.
  • Sale of Manhattan Retail Properties is expected to recognize a financial statement loss of approximately $500,000.
  • Increase in interest rates and inflation may impact the business, financial condition, and results of operations.

Revenue & Expenses

Visualization of income flow from segment revenue to net income

Company Overview

Full financial data and analysis

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