Vornado Realty Trust's Net Income Surges

By Tamara Parker • Tuesday, February 11 10:24 • Permanent Link

Vornado Realty Trust (NYSE: VNO) announced its financial results for the fourth quarter and year ended December 31, 2024.

For the quarter ended December 31, 2024, the net income attributable to common shareholders was $1,203,000, compared to a net loss of $61,013,000 for the same period in the prior year. Funds from operations ("FFO") attributable to common shareholders plus assumed conversions (non-GAAP) for the quarter were $117,085,000, or $0.58 per diluted share, down from $121,105,000, or $0.62 per diluted share, for the prior year's quarter. However, after adjusting for certain items impacting comparability, FFO attributable to common shareholders plus assumed conversions, as adjusted (non-GAAP), was $122,212,000, or $0.61 per diluted share, compared to $123,751,000, or $0.63 per diluted share, for the prior year's quarter.

For the year ended December 31, 2024, the net income attributable to common shareholders was $8,275,000, compared to $43,378,000 for the year ended December 31, 2023. FFO attributable to common shareholders plus assumed conversions (non-GAAP) for the year ended December 31, 2024, was $470,021,000, or $2.37 per diluted share, down from $503,792,000, or $2.59 per diluted share, for the year ended December 31, 2023. However, after adjusting for certain items impacting comparability, FFO attributable to common shareholders plus assumed conversions, as adjusted (non-GAAP) for the year ended December 31, 2024, was $447,071,000, or $2.26 per diluted share, compared to $508,151,000, or $2.61 per diluted share, for the year ended December 31, 2023.

In terms of specific adjustments, the press release mentions that deferred tax liability on the investment in the Farley Building, credit losses on investments, and gains on the sale of condominium units are among the items impacting FFO.

Additionally, the company completed several dispositions, including the sale of a portion of its U.S. flagship store at 666 Fifth Avenue, which yielded net proceeds of $342,000,000, and the sale of condominium units at 220 Central Park South, generating net proceeds of $31,605,000.

Vornado also engaged in acquisitions and financing activities during the period. It invested in a $50,000,000 B-note secured by a Midtown Manhattan property and repaid a $450,000,000 3.50% senior unsecured notes. The company also completed several refinancing transactions.

Notably, the leasing activity for the period saw a total of 583,000 square feet leased in New York, with a weighted average lease term of 5.0 years. The initial rent for this period was reported at $87.48 per square foot.

These specific figures and transactions provide a detailed view of Vornado Realty Trust's financial performance and operational activities for the period. As a result of these announcements, the company's shares have moved 3.1% on the market, and are now trading at a price of $43.66. If you want to know more, read the company's complete 8-K report here.

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