Vornado Realty Trust (VNO) Financial Report Summaries

Risks

• A significant portion of our properties is located in the New York metropolitan area and is affected by the economic cycles and risks inherent to this area.
• We are subject to risks that affect the general and New York City retail environments.
• Our performance and the value of an investment in us are subject to risks associated with our real estate assets and with the real estate industry.
• Real estate is a competitive business and that competition may adversely impact us.
• We may be unable to renew leases, lease vacant space or relet space as leases expire on favorable terms.
• Bankruptcy or insolvency of tenants may decrease our revenues, net income and available cash.
• Some of our potential losses may not be covered by insurance.
• Actual or threatened terrorist attacks or other criminal acts may adversely affect the value of our properties and our ability to generate cash flow.
• The effects of climate change could have a concentrated impact on the areas where we operate and could adversely impact our results.
• Changes to tax laws could affect REITs generally, the trading of our shares and our results of operations, both positively and negatively, in ways that are difficult to anticipate.
• Significant inflation and increases in the inflation rate could adversely affect our business and financial results.
• We face risks associated with property acquisitions.
• We are exposed to risks associated with property development, redevelopment and repositioning that could adversely affect us, including our financial condition and results of operations.
• It may be difficult to sell real estate on a timely basis, which may limit our flexibility.
• There may be limitations on our ability to sell or reduce the indebtedness of specific properties. In addition, when we dispose of or sell assets, we may not be able to reinvest the sales proceeds and earn similar returns.
• From time to time we have made, and in the future we may seek to make investments in companies over which we do not have sole control. Some of these companies operate in industries with different risks than investing and operating real estate.
• We are subject to risks involved in real estate activity through joint ventures.
• We are exposed to risks related to our properties that are subject to ground leases arrangements which could adversely affect our results of operations.
• Significantly tighter capital markets and economic conditions have affected and may continue to materially affect our liquidity, financial condition and results of operations as well as the value of an investment in our debt and equity securities.
• We have outstanding debt, and its cost may continue to increase and refinancing may not be available on acceptable terms and could affect our future operations.
• We may not be able to obtain capital to make investments.
• The hedge instruments we may use to manage our exposure to interest rate volatility involve risks.
• Covenants in our debt instruments could adversely affect our financial condition and our acquisitions and development activities.
• A downgrade in our credit ratings could materially and adversely affect our business and financial condition.
• We depend on dividends and distributions from our direct and indirect subsidiaries. The creditors and preferred equity holders of these subsidiaries are entitled to amounts payable to them by the subsidiaries before the subsidiaries may pay any dividends or distributions to us.
• Vornado’s Amended and Restated Declaration of Trust (the “declaration of trust”) sets limits on the ownership of its shares.
• The Maryland General Corporation Law (the “MGCL”) contains provisions that may reduce the likelihood of certain takeover transactions.
• Vornado may issue additional shares in a manner that could adversely affect the likelihood of certain takeover transactions.
• We may change our policies without obtaining the approval of our equity holders.
• Steven Roth and Interstate Properties may exercise substantial influence over us. They and some of Vornado’s other trustees and officers have interests or positions in other entities that may compete with us.
• There may be conflicts of interest between Alexander’s and us.
• The trading price of Vornado’s common shares has been volatile and may continue to fluctuate.
• Vornado has many shares available for future sale, which could hurt the market price of its shares and the redemption price of the Operating Partnership’s units.
• Loss of our key personnel could harm our operations and adversely affect the value of our common shares and Operating Partnership Class A units.
• Vornado may fail to qualify or remain qualified as a REIT and may be required to pay federal income taxes at corporate rates, which could adversely impact the value of our common shares.
• We may face possible adverse federal tax audits and changes in federal tax laws, which may result in an increase in our tax liability.
• We may face possible adverse state and local tax audits and changes in state and local tax law.
• Compliance or failure to comply with the Americans with Disabilities Act (the "ADA") or other safety regulations and requirements could result in substantial costs.
• We may incur significant costs to comply with environmental laws and environmental contamination may impair our ability to lease and/or sell real estate.
• The occurrence of cyber incidents, or a deficiency in our cyber security, as well as other disruptions to our IT networks and related systems, could negatively impact our business by causing a disruption to our operations, a compromise or corruption of our confidential information, and/or damage to our business relationships or reputation, all of which could negatively impact our financial results.