UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
 FORM 10-Q
(Mark one)
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended: September 30, 20202021
 Or
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from:to
 
Commission File Number:001-11954(Vornado Realty Trust)
Commission File Number:001-34482(Vornado Realty L.P.)

Vornado Realty Trust
Vornado Realty L.P.
(Exact name of registrants as specified in its charter)
Vornado Realty TrustMaryland22-1657560
(State or other jurisdiction of incorporation or organization)(I.R.S. Employer Identification Number)
Vornado Realty L.P.Delaware13-3925979
(State or other jurisdiction of incorporation or organization)(I.R.S. Employer Identification Number)
888 Seventh Avenue,New York,New York10019
(Address of principal executive offices) (Zip Code)
(212)894-7000
(Registrants’ telephone number, including area code)
N/A
(Former name, former address and former fiscal year, if changed since last report)
.
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
Vornado Realty Trust: Yes☑ No ☐    Vornado Realty L.P.: Yes☑ No ☐ 
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).  
Vornado Realty Trust: Yes☑ No ☐    Vornado Realty L.P.: Yes☑ No ☐ 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” "non-accelerated filer," “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Vornado Realty Trust:
Large Accelerated FilerAccelerated Filer
Non-Accelerated FilerSmaller Reporting Company
Emerging Growth Company
Vornado Realty L.P.:
Large Accelerated FilerAccelerated Filer
Non-Accelerated FilerSmaller Reporting Company
Emerging Growth Company




If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).  
Vornado Realty Trust: Yes☐   No ☑    Vornado Realty L.P.: Yes☐   No ☑ 

Securities registered pursuant to Section 12(b) of the Act:
RegistrantTitle of each classTrading Symbol(s)Name of each exchange on which registered
Vornado Realty TrustCommon Shares of beneficial interest, $.04 par value per shareVNONew York Stock Exchange
Cumulative Redeemable Preferred Shares of beneficial interest, liquidation preference $25.00 per share:
Vornado Realty Trust5.70% Series KVNO/PKNew York Stock Exchange
Vornado Realty Trust5.40% Series LVNO/PLNew York Stock Exchange
Vornado Realty Trust5.25% Series MVNO/PMNew York Stock Exchange
Vornado Realty Trust5.25% Series NVNO/PNNew York Stock Exchange
Vornado Realty Trust4.45% Series OVNO/PONew York Stock Exchange
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
Vornado Realty Trust: Yes☑ No ☐    Vornado Realty L.P.: Yes☑ No ☐ 
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).  
Vornado Realty Trust: Yes☑ No ☐    Vornado Realty L.P.: Yes☑ No ☐ 






Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” "non-accelerated filer," “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Vornado Realty Trust:
Large Accelerated FilerAccelerated Filer
Non-Accelerated FilerSmaller Reporting Company
Emerging Growth Company
Vornado Realty L.P.:
Large Accelerated FilerAccelerated Filer
Non-Accelerated FilerSmaller Reporting Company
Emerging Growth Company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).  
Vornado Realty Trust: Yes☐   No ☑    Vornado Realty L.P.: Yes☐   No ☑ 
  
As of September 30, 2020, 191,260,9812021, 191,680,984 of Vornado Realty Trust’s common shares of beneficial interest are outstanding.



EXPLANATORY NOTE
This report combines the quarterly reports on Form 10-Q for the period ended September 30, 20202021 of Vornado Realty Trust and Vornado Realty L.P. Unless stated otherwise or the context otherwise requires, references to “Vornado” refer to Vornado Realty Trust, a Maryland real estate investment trust (“REIT”), and references to the “Operating Partnership” refer to Vornado Realty L.P., a Delaware limited partnership. References to the “Company,” “we,” “us” and “our” mean collectively Vornado, the Operating Partnership and those subsidiaries consolidated by Vornado.
The Operating Partnership is the entity through which we conduct substantially all of our business and own, either directly or through subsidiaries, substantially all of our assets. Vornado is the sole general partner and also a 92.7%92.6% limited partner of the Operating Partnership. As the sole general partner of the Operating Partnership, Vornado has exclusive control of the Operating Partnership’s day-to-day management.
Under the limited partnership agreement of the Operating Partnership, unitholders may present their Class A units for redemption at any time (subject to restrictions agreed upon at the time of issuance of the units that may restrict such right for a period of time). Class A units may be tendered for redemption to the Operating Partnership for cash; Vornado, at its option, may assume that obligation and pay the holder either cash or Vornado common shares on a one-for-one basis. Because the number of Vornado common shares outstanding at all times equals the number of Class A units owned by Vornado, the redemption value of each Class A unit is equivalent to the market value of one Vornado common share, and the quarterly distribution to a Class A unitholder is equal to the quarterly dividend paid to a Vornado common shareholder. This one-for-one exchange ratio is subject to specified adjustments to prevent dilution. Vornado generally expects that it will elect to issue its common shares in connection with each such presentation for redemption rather than having the Operating Partnership pay cash. With each such exchange or redemption, Vornado’s percentage ownership in the Operating Partnership will increase. In addition, whenever Vornado issues common shares other than to acquire Class A units of the Operating Partnership, Vornado must contribute any net proceeds it receives to the Operating Partnership and the Operating Partnership must issue to Vornado an equivalent number of Class A units of the Operating Partnership. This structure is commonly referred to as an umbrella partnership REIT, or UPREIT.
The Company believes that combining the quarterly reports on Form 10-Q of Vornado and the Operating Partnership into this single report provides the following benefits:
enhances investors’ understanding of Vornado and the Operating Partnership by enabling investors to view the business as a whole in the same manner as management views and operates the business;
eliminates duplicative disclosure and provides a more streamlined and readable presentation because a substantial portion of the disclosure applies to both Vornado and the Operating Partnership; and
creates time and cost efficiencies in the preparation of one combined report instead of two separate reports.
The Company believes it is important to understand the few differences between Vornado and the Operating Partnership in the context of how Vornado and the Operating Partnership operate as a consolidated company. The financial results of the Operating Partnership are consolidated into the financial statements of Vornado. Vornado does not have any significant assets, liabilities or operations, other than its investment in the Operating Partnership. The Operating Partnership, not Vornado, generally executes all significant business relationships other than transactions involving the securities of Vornado. The Operating Partnership holds substantially all of the assets of Vornado. The Operating Partnership conducts the operations of the business and is structured as a partnership with no publicly traded equity. Except for the net proceeds from equity offerings by Vornado, which are contributed to the capital of the Operating Partnership in exchange for Class A units of partnership in the Operating Partnership, and the net proceeds of debt offerings by Vornado, which are contributed to the Operating Partnership in exchange for debt securities of the Operating Partnership, as applicable, the Operating Partnership generates all remaining capital required by the Company’s business. These sources may include working capital, net cash provided by operating activities, borrowings under the revolving credit facility, the issuance of secured and unsecured debt and equity securities and proceeds received from the disposition of certain properties.

3


To help investors better understand the key differences between Vornado and the Operating Partnership, certain information for Vornado and the Operating Partnership in this report has been separated, as set forth below:
Item 1. Financial Statements (unaudited), which includes the following specific disclosures for Vornado Realty Trust and Vornado Realty L.P.:
Note 12.11. Redeemable Noncontrolling Interests
Note 13.12. Shareholders' Equity/Partners' Capital
Note 20.19. Income (Loss) Per Share/Income (Loss) Per Class A Unit
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations includes information specific to each entity, where applicable.
This report also includes separate Part I, Item 4. Controls and Procedures sections and separate Exhibits 31 and 32 certifications for each of Vornado and the Operating Partnership in order to establish that the requisite certifications have been made and that Vornado and the Operating Partnership are compliant with Rule 13a-15 or Rule 15d-15 of the Securities Exchange Act of 1934 and 18 U.S.C. §1350.
4


PART I.Financial Information:Page Number
Consolidated Balance Sheets (Unaudited) as of September 30, 20202021 and December 31, 20192020
Consolidated Statements of Income (Unaudited) for the Three and Nine Months Ended September 30, 20202021 and 20192020
Consolidated Statements of Comprehensive Income (Unaudited) for the Three and Nine Months Ended September 30,
2020
2021 and 20192020
Consolidated Statements of Changes in Equity (Unaudited) for the Three and Nine Months Ended September 30, 2020
2021 and 20192020
Consolidated Statements of Cash Flows (Unaudited) for the Nine Months Ended September 30, 20202021 and 20192020
Consolidated Balance Sheets (Unaudited) as of September 30, 20202021 and December 31, 20192020
Consolidated Statements of Income (Unaudited) for the Three and Nine Months Ended September 30, 20202021 and 20192020
Consolidated Statements of Comprehensive Income (Unaudited) for the Three and Nine Months Ended September 30,
2020
2021 and 20192020
Consolidated Statements of Changes in Equity (Unaudited) for the Three and Nine Months Ended September 30, 2020
2021 and 20192020
Consolidated Statements of Cash Flows (Unaudited) for the Nine Months Ended September 30, 20202021 and 20192020
Vornado Realty Trust and Vornado Realty L.P.:
PART II.Other Information:

5

PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
VORNADO REALTY TRUST
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
(Amounts in thousands, except unit, share, and per share amounts)As of
September 30, 2020December 31, 2019
ASSETS
Real estate, at cost:
Land$2,589,452 $2,591,261 
Buildings and improvements8,004,206 7,953,163 
Development costs and construction in progress1,514,941 1,490,614 
Moynihan Train Hall development expenditures1,223,600 914,960 
Leasehold improvements and equipment128,642 124,014 
Total13,460,841 13,074,012 
Less accumulated depreciation and amortization(3,155,416)(3,015,958)
Real estate, net10,305,425 10,058,054 
Right-of-use assets374,805 379,546 
Cash and cash equivalents1,411,047 1,515,012 
Restricted cash79,291 92,119 
Marketable securities33,313 
Tenant and other receivables103,051 95,733 
Investments in partially owned entities3,504,328 3,999,165 
Real estate fund investments3,739 222,649 
220 Central Park South condominium units ready for sale181,041 408,918 
Receivable arising from the straight-lining of rents678,381 742,206 
Deferred leasing costs, net of accumulated amortization of $191,093 and $196,229385,089 353,986 
Identified intangible assets, net of accumulated amortization of $95,567 and $98,58725,746 30,965 
Other assets510,955 355,347 
 $17,562,898 $18,287,013 
LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND EQUITY
Mortgages payable, net$5,639,151 $5,639,897 
Senior unsecured notes, net446,482 445,872 
Unsecured term loan, net796,499 745,840 
Unsecured revolving credit facilities575,000 575,000 
Lease liabilities425,646 498,254 
Moynihan Train Hall obligation1,223,600 914,960 
Special dividend/distribution payable398,292 
Accounts payable and accrued expenses430,446 440,049 
Deferred revenue45,473 59,429 
Deferred compensation plan98,543 103,773 
Other liabilities302,622 265,754 
Total liabilities9,983,462 10,087,120 
Commitments and contingencies
Redeemable noncontrolling interests:
Class A units - 13,670,466 and 13,298,956 units outstanding594,934 884,380 
Series D cumulative redeemable preferred units - 141,401 units outstanding4,535 4,535 
Total redeemable noncontrolling partnership units599,469 888,915 
Redeemable noncontrolling interest in a consolidated subsidiary94,282 
Total redeemable noncontrolling interests693,751 888,915 
Shareholders' equity:
Preferred shares of beneficial interest: 0 par value per share; authorized 110,000,000 shares; issued and outstanding 36,793,402 and 36,795,640 shares891,156 891,214 
Common shares of beneficial interest: $0.04 par value per share; authorized 250,000,000 shares; issued and outstanding 191,260,981 and 190,985,677 shares7,629 7,618 
Additional capital8,123,524 7,827,697 
Earnings less than distributions(2,463,635)(1,954,266)
Accumulated other comprehensive loss(89,834)(40,233)
Total shareholders' equity6,468,840 6,732,030 
Noncontrolling interests in consolidated subsidiaries416,845 578,948 
Total equity6,885,685 7,310,978 
 $17,562,898 $18,287,013 

(Amounts in thousands, except unit, share, and per share amounts)As of
September 30, 2021December 31, 2020
ASSETS
Real estate, at cost:
Land$2,528,207 $2,420,054 
Buildings and improvements8,449,768 7,933,030 
Development costs and construction in progress1,830,660 1,604,637 
Leasehold improvements and equipment111,233 130,222 
Total12,919,868 12,087,943 
Less accumulated depreciation and amortization(3,309,273)(3,169,446)
Real estate, net9,610,595 8,918,497 
Right-of-use assets337,130 367,365 
Cash and cash equivalents2,128,964 1,624,482 
Restricted cash139,233 105,887 
Tenant and other receivables89,606 77,658 
Investments in partially owned entities3,287,870 3,491,107 
Real estate fund investments3,739 3,739 
220 Central Park South condominium units ready for sale77,658 128,215 
Receivable arising from the straight-lining of rents656,137 674,075 
Deferred leasing costs, net of accumulated amortization of $209,266 and $196,972386,273 372,919 
Identified intangible assets, net of accumulated amortization of $93,643 and $93,113158,438 23,856 
Other assets613,157 434,022 
 $17,488,800 $16,221,822 
LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND EQUITY
Mortgages payable, net$6,069,512 $5,580,549 
Senior unsecured notes, net1,189,680 446,685 
Unsecured term loan, net797,549 796,762 
Unsecured revolving credit facilities575,000 575,000 
Lease liabilities372,908 401,008 
Accounts payable and accrued expenses449,768 427,202 
Deferred revenue50,064 40,110 
Deferred compensation plan107,860 105,564 
Preferred shares to be redeemed on October 13, 2021300,000 — 
Other liabilities305,946 294,520 
Total liabilities10,218,287 8,667,400 
Commitments and contingencies00
Redeemable noncontrolling interests:
Class A units - 14,070,794 and 13,583,607 units outstanding591,114 507,212 
Series D cumulative redeemable preferred units - 141,400 and 141,401 units outstanding3,535 4,535 
Total redeemable noncontrolling partnership units594,649 511,747 
Redeemable noncontrolling interest in a consolidated subsidiary96,039 94,520 
Total redeemable noncontrolling interests690,688 606,267 
Shareholders' equity:
Preferred shares of beneficial interest: no par value per share; authorized 110,000,000 shares; issued and outstanding 48,792,902 and 48,793,402 shares1,182,499 1,182,339 
Common shares of beneficial interest: $0.04 par value per share; authorized 250,000,000 shares; issued and outstanding 191,680,984 and 191,354,679 shares7,646 7,633 
Additional capital8,138,337 8,192,507 
Earnings less than distributions(2,988,999)(2,774,182)
Accumulated other comprehensive loss(45,179)(75,099)
Total shareholders' equity6,294,304 6,533,198 
Noncontrolling interests in consolidated subsidiaries285,521 414,957 
Total equity6,579,825 6,948,155 
 $17,488,800 $16,221,822 
See notes to consolidated financial statements (unaudited).
6


VORNADO REALTY TRUST
CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
(Amounts in thousands, except per share amounts)(Amounts in thousands, except per share amounts)For the Three Months Ended September 30,For the Nine Months Ended September 30,(Amounts in thousands, except per share amounts)For the Three Months Ended September 30,For the Nine Months Ended September 30,
20202019202020192021202020212020
REVENUES:REVENUES:REVENUES:
Rental revenuesRental revenues$322,253 $427,638 $1,038,721 $1,348,814 Rental revenues$369,203 $322,253 $1,048,116 $1,038,721 
Fee and other incomeFee and other income41,709 38,323 112,799 114,918 Fee and other income40,009 41,709 120,014 112,799 
Total revenuesTotal revenues363,962 465,961 1,151,520 1,463,732 Total revenues409,212 363,962 1,168,130 1,151,520 
EXPENSES:EXPENSES:EXPENSES:
OperatingOperating(195,645)(226,359)(600,077)(694,006)Operating(212,699)(195,645)(594,598)(600,077)
Depreciation and amortizationDepreciation and amortization(107,013)(96,437)(292,611)(326,181)Depreciation and amortization(100,867)(107,013)(285,998)(292,611)
General and administrativeGeneral and administrative(32,407)(33,237)(120,255)(130,129)General and administrative(25,553)(32,407)(100,341)(120,255)
(Expense) benefit from deferred compensation plan liability(Expense) benefit from deferred compensation plan liability(4,341)(974)548 (7,722)(Expense) benefit from deferred compensation plan liability(799)(4,341)(7,422)548 
(Expense from transaction related costs and impairment losses) and gain from lease liability extinguishment, net(584)(1,576)68,566 (103,315)
(Impairment losses, transaction related costs and other) lease liability extinguishment gain(Impairment losses, transaction related costs and other) lease liability extinguishment gain(9,681)(584)(10,630)68,566 
Total expensesTotal expenses(339,990)(358,583)(943,829)(1,261,353)Total expenses(349,599)(339,990)(998,989)(943,829)



(Loss) income from partially owned entities(80,909)25,946 (353,679)56,139 
Income (loss) from partially owned entitiesIncome (loss) from partially owned entities26,269 (80,909)86,768 (353,679)
(Loss) income from real estate fund investments(Loss) income from real estate fund investments(13,823)2,190 (225,328)(13,780)(Loss) income from real estate fund investments(66)(13,823)5,107 (225,328)
Interest and other investment income (loss), netInterest and other investment income (loss), net1,729 3,045 (7,068)15,930 Interest and other investment income (loss), net633 1,729 3,694 (7,068)
Income (loss) from deferred compensation plan assetsIncome (loss) from deferred compensation plan assets4,341 974 (548)7,722 Income (loss) from deferred compensation plan assets799 4,341 7,422 (548)
Interest and debt expenseInterest and debt expense(57,371)(61,448)(174,618)(226,940)Interest and debt expense(50,946)(57,371)(152,904)(174,618)
Net gain on transfer to Fifth Avenue and Times Square JV2,571,099 
Net gains on disposition of wholly owned and partially owned assetsNet gains on disposition of wholly owned and partially owned assets214,578 309,657 338,862 641,664 Net gains on disposition of wholly owned and partially owned assets10,087 214,578 35,811 338,862 
Income (loss) before income taxesIncome (loss) before income taxes92,517 387,742 (214,688)3,254,213 Income (loss) before income taxes46,389 92,517 155,039 (214,688)
Income tax expense(23,781)(23,885)(38,431)(80,542)
Income (loss) from continuing operations68,736 363,857 (253,119)3,173,671 
Loss from discontinued operations(8)(85)
Income tax benefit (expense)Income tax benefit (expense)25,376 (23,781)20,551 (38,431)
Net income (loss)Net income (loss)68,736 363,849 (253,119)3,173,586 Net income (loss)71,765 68,736 175,590 (253,119)
Less net loss (income) attributable to noncontrolling interests in:
Less net (income) loss attributable to noncontrolling interests in:Less net (income) loss attributable to noncontrolling interests in:
Consolidated subsidiariesConsolidated subsidiaries848 (5,774)141,003 (34,045)Consolidated subsidiaries(5,425)848 (20,323)141,003 
Operating PartnershipOperating Partnership(3,884)(22,637)10,090 (197,354)Operating Partnership(2,818)(3,884)(6,683)10,090 
Net income (loss) attributable to VornadoNet income (loss) attributable to Vornado65,700 335,438 (102,026)2,942,187 Net income (loss) attributable to Vornado63,522 65,700 148,584 (102,026)
Preferred share dividendsPreferred share dividends(12,530)(12,532)(37,591)(37,598)Preferred share dividends(16,800)(12,530)(49,734)(37,591)
Series K preferred share issuance costsSeries K preferred share issuance costs(9,033)— (9,033)— 
NET INCOME (LOSS) attributable to common shareholdersNET INCOME (LOSS) attributable to common shareholders$53,170 $322,906 $(139,617)$2,904,589 NET INCOME (LOSS) attributable to common shareholders$37,689 $53,170 $89,817 $(139,617)
INCOME (LOSS) PER COMMON SHARE - BASIC:INCOME (LOSS) PER COMMON SHARE - BASIC:INCOME (LOSS) PER COMMON SHARE - BASIC:
Net income (loss) per common shareNet income (loss) per common share$0.28 $1.69 $(0.73)$15.22 Net income (loss) per common share$0.20 $0.28 $0.47 $(0.73)
Weighted average shares outstandingWeighted average shares outstanding191,162 190,814 191,102 190,762 Weighted average shares outstanding191,577 191,162 191,508 191,102 
INCOME (LOSS) PER COMMON SHARE - DILUTED:INCOME (LOSS) PER COMMON SHARE - DILUTED:INCOME (LOSS) PER COMMON SHARE - DILUTED:
Net income (loss) per common shareNet income (loss) per common share$0.28 $1.69 $(0.73)$15.20 Net income (loss) per common share$0.20 $0.28 $0.47 $(0.73)
Weighted average shares outstandingWeighted average shares outstanding191,162 191,024 191,102 191,027 Weighted average shares outstanding192,041 191,162 192,151 191,102 
See notes to consolidated financial statements (unaudited).

7


VORNADO REALTY TRUST
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(UNAUDITED)
(Amounts in thousands)(Amounts in thousands)For the Three Months Ended September 30,For the Nine Months Ended September 30,(Amounts in thousands)For the Three Months Ended September 30,For the Nine Months Ended September 30,
20202019202020192021202020212020
Net income (loss)Net income (loss)$68,736 $363,849 $(253,119)$3,173,586 Net income (loss)$71,765 $68,736 $175,590 $(253,119)
Other comprehensive (loss) income:
Other comprehensive (loss) income of nonconsolidated subsidiaries(15,634)11 (15,626)(949)
Other comprehensive income (loss):Other comprehensive income (loss):
Increase (reduction) in value of interest rate swaps and otherIncrease (reduction) in value of interest rate swaps and other7,926 (9,954)(37,473)(55,495)Increase (reduction) in value of interest rate swaps and other5,362 7,926 25,555 (37,473)
Amounts reclassified from accumulated other comprehensive loss relating to a nonconsolidated subsidiary(2,311)
Other comprehensive income (loss) of nonconsolidated subsidiariesOther comprehensive income (loss) of nonconsolidated subsidiaries1,322 (15,634)6,381 (15,626)
Comprehensive income (loss)Comprehensive income (loss)61,028 353,906 (306,218)3,114,831 Comprehensive income (loss)78,449 61,028 207,526 (306,218)
Less comprehensive (income) loss attributable to noncontrolling interestsLess comprehensive (income) loss attributable to noncontrolling interests(2,516)(27,761)154,591 (227,667)Less comprehensive (income) loss attributable to noncontrolling interests(8,669)(2,516)(29,022)154,591 
Comprehensive income (loss) attributable to VornadoComprehensive income (loss) attributable to Vornado$58,512 $326,145 $(151,627)$2,887,164 Comprehensive income (loss) attributable to Vornado$69,780 $58,512 $178,504 $(151,627)
See notes to consolidated financial statements (unaudited).

8


VORNADO REALTY TRUST
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
(UNAUDITED)
(Amounts in thousands, except per share amounts)(Amounts in thousands, except per share amounts)Non-controlling Interests in Consolidated Subsidiaries(Amounts in thousands, except per share amounts)Non-controlling Interests in Consolidated Subsidiaries
Accumulated
Other
Comprehensive
Loss
Accumulated
Other
Comprehensive
(Loss) Income
Preferred SharesCommon SharesAdditional CapitalEarnings Less Than DistributionsNon-controlling Interests in Consolidated SubsidiariesTotal EquityPreferred SharesCommon SharesAdditional CapitalEarnings Less Than DistributionsNon-controlling Interests in Consolidated SubsidiariesTotal Equity
SharesAmountSharesAmountSharesAmountSharesAmount
For the Three Months Ended
September 30, 2020
Balance as of June 30, 202036,794 $891,164 191,151 $7,625 $8,095,774 $(2,415,500)$(82,646)$432,492 6,928,909 
For the Three Months Ended
September 30, 2021
For the Three Months Ended
September 30, 2021
Balance as of June 30, 2021Balance as of June 30, 202148,793 $1,182,291 191,561 $7,641 $8,069,033 $(2,925,161)$(51,437)$285,950 $6,568,317 
Net income attributable to VornadoNet income attributable to Vornado— — — — — 65,700 — — 65,700 Net income attributable to Vornado— — — — — 63,522 — — 63,522 
Net loss attributable to nonredeemable noncontrolling interests in consolidated subsidiaries— — — — — — — (1,019)(1,019)
Net income attributable to nonredeemable noncontrolling interests in consolidated subsidiariesNet income attributable to nonredeemable noncontrolling interests in consolidated subsidiaries— — — — — — — 4,299 4,299 
Dividends on common shares
($0.53 per share)
Dividends on common shares
($0.53 per share)
— — — — — (101,311)— — (101,311)
Dividends on common shares
($0.53 per share)
— — — — — (101,527)— — (101,527)
Dividends on preferred shares (see Note 13 for dividends per share amounts)— — — — — (12,530)— — (12,530)
Dividends on preferred shares (see Note 12 for dividends per share amounts)Dividends on preferred shares (see Note 12 for dividends per share amounts)— — — — — (16,800)— — (16,800)
Series O cumulative redeemable preferred shares issuanceSeries O cumulative redeemable preferred shares issuance12,000 291,195 — — — — — — 291,195 
Common shares issued:Common shares issued:Common shares issued:
Upon redemption of Class A units, at redemption valueUpon redemption of Class A units, at redemption value— — 100 3,582 — — — 3,586 Upon redemption of Class A units, at redemption value— — 114 4,744 — — — 4,749 
Under dividend reinvestment planUnder dividend reinvestment plan— — 299 — — — 300 Under dividend reinvestment plan— — 223 — — — 224 
ContributionsContributions— — — — — — — 358 358 Contributions— — — — — — — 1,110 1,110 
DistributionsDistributions— — — — — — — (14,987)(14,987)Distributions— — — — — — — (5,877)(5,877)
Conversion of Series A preferred shares to common sharesConversion of Series A preferred shares to common shares(1)(7)— — — — — Conversion of Series A preferred shares to common shares— (13)— 13 — — — — 
Deferred compensation shares and optionsDeferred compensation shares and options— — — — 304 — — — 304 Deferred compensation shares and options— — (1)— 226 — — — 226 
Other comprehensive loss of nonconsolidated subsidiaries— — — — — — (15,634)— (15,634)
Other comprehensive income of nonconsolidated subsidiariesOther comprehensive income of nonconsolidated subsidiaries— — — — — — 1,322 — 1,322 
Increase in value of interest rate
swaps
Increase in value of interest rate
swaps
— — — — — — 7,926 — 7,926 Increase in value of interest rate swaps— — — — — — 5,360 — 5,360 
Redeemable Class A unit measurement adjustmentRedeemable Class A unit measurement adjustment— — — — 23,557 — — — 23,557 Redeemable Class A unit measurement adjustment— — — — 64,100 — — — 64,100 
Series K cumulative redeemable preferred shares called for redemptionSeries K cumulative redeemable preferred shares called for redemption(12,000)(290,967)— — — (9,033)— — (300,000)
Redeemable noncontrolling interests' share of above adjustmentsRedeemable noncontrolling interests' share of above adjustments— — — — — — 520 — 520 Redeemable noncontrolling interests' share of above adjustments— — — — — — (426)— (426)
OtherOther— (1)(1)— Other— (7)— (1)(2)— 39 31 
Balance as of September 30, 202036,793 $891,156 191,261 $7,629 $8,123,524 $(2,463,635)$(89,834)$416,845 $6,885,685 
Balance as of September 30, 2021Balance as of September 30, 202148,793 $1,182,499 191,681 $7,646 $8,138,337 $(2,988,999)$(45,179)$285,521 $6,579,825 
See notes to consolidated financial statements (unaudited).
9


VORNADO REALTY TRUST
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY - CONTINUED
(UNAUDITED)
(Amounts in thousands, except per share amounts)(Amounts in thousands, except per share amounts)Non-controlling Interests in Consolidated Subsidiaries(Amounts in thousands, except per share amounts)Non-controlling Interests in Consolidated Subsidiaries
Accumulated
Other
Comprehensive
Loss
Accumulated
Other
Comprehensive
(Loss) Income
Preferred SharesCommon SharesAdditional CapitalEarnings Less Than DistributionsNon-controlling Interests in Consolidated SubsidiariesTotal EquityPreferred SharesCommon SharesAdditional CapitalEarnings Less Than DistributionsNon-controlling Interests in Consolidated SubsidiariesTotal Equity
SharesAmountSharesAmountSharesAmountSharesAmount
For the Three Months Ended
September 30, 2019:
Balance as of June 30, 201936,797 $891,256 190,813 $7,611 $7,845,748 $(1,845,995)$(38,066)$635,590 $7,496,144 
For the Three Months Ended
September 30, 2020
For the Three Months Ended
September 30, 2020
Balance as of June 30, 2020Balance as of June 30, 202036,794 $891,164 191,151 $7,625 $8,095,774 $(2,415,500)$(82,646)$432,492 $6,928,909 
Net income attributable to VornadoNet income attributable to Vornado— — — — — 335,438 — — 335,438 Net income attributable to Vornado— — — — — 65,700 — — 65,700 
Net income attributable to noncontrolling interests in consolidated subsidiaries— — — — — — — 5,774 5,774 
Dividends on common shares
($0.66 per share)
— — — — — (125,947)— — (125,947)
Dividends on preferred shares (see Note 13 for dividends per share amounts)— — — — — (12,532)— — (12,532)
Net loss attributable to nonredeemable noncontrolling interests in consolidated subsidiariesNet loss attributable to nonredeemable noncontrolling interests in consolidated subsidiaries— — — — — — — (1,019)(1,019)
Dividends on common shares
($0.53 per share)
Dividends on common shares
($0.53 per share)
— — — — — (101,311)— — (101,311)
Dividends on preferred shares (see Note 12 for dividends per share amounts)Dividends on preferred shares (see Note 12 for dividends per share amounts)— — — — — (12,530)— — (12,530)
Common shares issued:Common shares issued:Common shares issued:
Upon redemption of Class A units, at redemption valueUpon redemption of Class A units, at redemption value— — 31 1,998 — — — 1,999 Upon redemption of Class A units, at redemption value— — 100 3,582 — — — 3,586 
Under dividend reinvestment planUnder dividend reinvestment plan— — 356 — — — 357 Under dividend reinvestment plan— — 299 — — — 300 
ContributionsContributions— — — — — — — 908 908 Contributions— — — — — — — 358 358 
Distributions:
Real estate fund investments— — — — — — — (6)(6)
Other— — — — — — — (7,086)(7,086)
DistributionsDistributions— — — — — — — (14,987)(14,987)
Conversion of Series A preferred shares to common sharesConversion of Series A preferred shares to common shares(1)(7)— — — — — — 
Deferred compensation shares and optionsDeferred compensation shares and options— — — — 266 — — — 266 Deferred compensation shares and options— — — — 304 — — — 304 
Other comprehensive income of nonconsolidated subsidiaries— — — — — — 11 — 11 
Reduction in value of interest rate swaps— — — — — (9,953)— (9,953)
Other comprehensive loss of nonconsolidated subsidiariesOther comprehensive loss of nonconsolidated subsidiaries— — — — — — (15,634)— (15,634)
Increase in value of interest rate swapsIncrease in value of interest rate swaps— — — — — — 7,926 — 7,926 
Redeemable Class A unit measurement adjustmentRedeemable Class A unit measurement adjustment— — — — 24,228 — — — 24,228 Redeemable Class A unit measurement adjustment— — — — 23,557 — — — 23,557 
Redeemable noncontrolling interests' share of above adjustmentsRedeemable noncontrolling interests' share of above adjustments— — — — — — 650 — 650 Redeemable noncontrolling interests' share of above adjustments— — — — — — 520 — 520 
OtherOther— — — — (1)Other— (1)(1)— 
Balance as of September 30, 201936,797 $891,256 190,850 $7,613 $7,872,597 $(1,649,035)$(47,359)$635,184 $7,710,256 
Balance as of September 30, 2020Balance as of September 30, 202036,793 $891,156 191,261 $7,629 $8,123,524 $(2,463,635)$(89,834)$416,845 $6,885,685 
See notes to consolidated financial statements (unaudited).
10


VORNADO REALTY TRUST
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY - CONTINUED
(UNAUDITED)
(Amounts in thousands, except per share amounts)Earnings Less Than DistributionsAccumulated
Other
Comprehensive
Loss
Non-controlling Interests in Consolidated Subsidiaries
Preferred SharesCommon SharesAdditional CapitalTotal Equity
SharesAmountSharesAmount
For the Nine Months Ended
September 30, 2020:
Balance as of December 31, 201936,796 $891,214 190,986 $7,618 $7,827,697 $(1,954,266)$(40,233)$578,948 $7,310,978 
Cumulative effect of accounting change (see Note 4)— — — — — (16,064)— — (16,064)
Net loss attributable to Vornado— — — — — (102,026)— — (102,026)
Net loss attributable to
nonredeemable noncontrolling
interests in consolidated
subsidiaries
— — — — — — — (141,310)(141,310)
Dividends on common shares
   ($1.85 per share)
— — — — — (353,558)— — (353,558)
Dividends on preferred shares (see Note 13 for dividends per share amounts)— — — — — (37,591)— — (37,591)
Common shares issued:
Upon redemption of Class A units, at redemption value— — 149 6,044 — — — 6,050 
Under employees' share option plan— — 69 3,514 — — — 3,517 
Under dividend reinvestment plan— — 40 2,048 — — — 2,050 
Contributions:
Real estate fund investments— — — — — — — 3,389 3,389 
Other— — — — — — — 2,837 2,837 
Distributions— — — — — — — (25,517)(25,517)
Conversion of Series A preferred shares to common shares(3)(57)— 57 — — — 
Deferred compensation shares and options— — 13 905 (137)— — 769 
Other comprehensive loss of
nonconsolidated subsidiaries
— — — — — — (15,626)— (15,626)
Reduction in value of interest rate
swaps
— — — — — — (37,473)— (37,473)
Unearned 2017 Out-Performance Plan awards acceleration— — — — 10,824 — — — 10,824 
Redeemable Class A unit measurement adjustment— — — — 272,436 — — — 272,436 
Redeemable noncontrolling interests' share of above adjustments— — — — — — 3,498 — 3,498 
Other— (1)— (1)(1)— (1,502)(1,498)
Balance as of September 30, 202036,793 $891,156 191,261 $7,629 $8,123,524 $(2,463,635)$(89,834)$416,845 $6,885,685 
(Amounts in thousands, except per share amounts)Non-controlling Interests in Consolidated Subsidiaries
Accumulated
Other
Comprehensive
(Loss) Income
Preferred SharesCommon SharesAdditional CapitalEarnings Less Than DistributionsTotal Equity
SharesAmountSharesAmount
For the Nine Months Ended
September 30, 2021
Balance as of December 31, 202048,793 $1,182,339 191,355 $7,633 $8,192,507 $(2,774,182)$(75,099)$414,957 $6,948,155 
Net income attributable to Vornado— — — — — 148,584 — — 148,584 
Net income attributable to nonredeemable noncontrolling interests in consolidated subsidiaries— — — — — — — 18,804 18,804 
Dividends on common shares
($1.59 per share)
— — — — — (304,516)— — (304,516)
Dividends on preferred shares (see Note 12 for dividends per share amounts)— — — — — (49,734)— — (49,734)
Series O cumulative redeemable preferred shares issuance12,000 291,195 — — — — — — 291,195 
Common shares issued:
Upon redemption of Class A units, at redemption value— — 313 13 13,045 — — — 13,058 
Under employees' share option plan— — — — 10 — — — 10 
Under dividend reinvestment plan— — 16 653 — — — 654 
Contributions— — — — — — — 2,657 2,657 
Distributions— — — — — — — (150,934)(150,934)
Conversion of Series A preferred shares to common shares— (13)— 13 — — — — 
Deferred compensation shares and options— — (4)— 675 (114)— — 561 
Other comprehensive income of nonconsolidated subsidiaries— — — — — — 6,381 — 6,381 
Increase in value of interest rate swaps— — — — — — 25,553 — 25,553 
Unearned 2018 Out-Performance Plan awards acceleration— — — — 10,283 — — — 10,283 
Redeemable Class A unit measurement adjustment— — — — (78,848)— — — (78,848)
Series K cumulative redeemable preferred shares called for redemption(12,000)(290,967)— — — (9,033)— — (300,000)
Redeemable noncontrolling interests' share of above adjustments— — — — — — (2,016)— (2,016)
Other— (55)— (1)(1)(4)37 (22)
Balance as of September 30, 202148,793 $1,182,499 191,681 $7,646 $8,138,337 $(2,988,999)$(45,179)$285,521 $6,579,825 
See notes to consolidated financial statements (unaudited).
11


VORNADO REALTY TRUST
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY - CONTINUED
(UNAUDITED)
(Amounts in thousands, except per share amounts)(Amounts in thousands, except per share amounts)Non-controlling Interests in Consolidated Subsidiaries(Amounts in thousands, except per share amounts)Non-controlling Interests in Consolidated Subsidiaries
Earnings
Less Than
Distributions
Accumulated
Other
Comprehensive
Income (Loss)
Accumulated
Other
Comprehensive
(Loss) Income
Preferred SharesCommon SharesAdditional
Capital
Total
Equity
Non-controlling Interests in Consolidated SubsidiariesPreferred SharesCommon SharesAdditional CapitalEarnings Less Than DistributionsNon-controlling Interests in Consolidated SubsidiariesTotal Equity
SharesAmountSharesAmountSharesAmountSharesAmount
For the Nine Months Ended
September 30, 2019:
Balance as of December 31, 201836,800 $891,294 190,535 $7,600 $7,725,857 $(4,167,184)$7,664 $642,652 
Net income attributable to Vornado— — — — — 2,942,187 — — 2,942,187 
Net income attributable to noncontrolling interests in consolidated subsidiaries— — — — — — — 34,045 34,045 
Dividends on common shares
($1.98 per share)
— — — — — (377,750)— — (377,750)
Dividends on preferred shares (see Note 13 for dividends per share amounts)— — — — — (37,598)— — (37,598)
For the Nine Months Ended
September 30, 2020
For the Nine Months Ended
September 30, 2020
Balance as of December 31, 2019Balance as of December 31, 201936,796 $891,214 190,986 $7,618 $7,827,697 $(1,954,266)$(40,233)$578,948 $7,310,978 
Cumulative effect of accounting changeCumulative effect of accounting change— — — — — (16,064)— — (16,064)
Net loss attributable to VornadoNet loss attributable to Vornado— — — — — (102,026)— — (102,026)
Net loss attributable to nonredeemable noncontrolling interests in consolidated subsidiariesNet loss attributable to nonredeemable noncontrolling interests in consolidated subsidiaries— — — — — — — (141,310)(141,310)
Dividends on common shares
($1.85 per share)
Dividends on common shares
($1.85 per share)
— — — — — (353,558)— — (353,558)
Dividends on preferred shares (see Note 12 for dividends per share amounts)Dividends on preferred shares (see Note 12 for dividends per share amounts)— — — — — (37,591)— — (37,591)
Common shares issued:Common shares issued:Common shares issued:
Upon redemption of Class A units, at redemption valueUpon redemption of Class A units, at redemption value— — 123 8,123 — — — 8,128 Upon redemption of Class A units, at redemption value— — 149 6,044 — — — 6,050 
Under employees' share option planUnder employees' share option plan— — 165 1,338 (8,692)— — (7,347)Under employees' share option plan— — 69 3,514 — — — 3,517 
Under dividend reinvestment planUnder dividend reinvestment plan— — 16 1,057 — — — 1,058 Under dividend reinvestment plan— — 40 2,048 — — — 2,050 
Contributions:Contributions:Contributions:
Real estate fund investmentsReal estate fund investments— — — — — — — 3,384 3,384 Real estate fund investments— — — — — — — 3,389 3,389 
OtherOther— — — — — — — 5,839 5,839 Other— — — — — — — 2,837 2,837 
DistributionsDistributions— — — — — — — (25,517)(25,517)
Distributions:
Real estate fund investments— — — — — — — (6)(6)
Other— — — — — — — (39,290)(39,290)
Conversion of Series A preferred shares to common sharesConversion of Series A preferred shares to common shares(2)(38)— 38 — — — Conversion of Series A preferred shares to common shares(3)(57)— 57 — — — — 
Deferred compensation shares and optionsDeferred compensation shares and options— — — 829 — — — 829 Deferred compensation shares and options— — 13 905 (137)— — 769 
Amount reclassified related to a nonconsolidated subsidiary— — — — — — (2,311)— (2,311)
Other comprehensive loss of nonconsolidated subsidiariesOther comprehensive loss of nonconsolidated subsidiaries— — — — — — (949)— (949)Other comprehensive loss of nonconsolidated subsidiaries— — — — — — (15,626)— (15,626)
Reduction in value of interest rate swapsReduction in value of interest rate swaps— — — — — — (55,497)— (55,497)Reduction in value of interest rate swaps— — — — — — (37,473)— (37,473)
Unearned 2016 Out-Performance Plan awards acceleration— — — — 11,720 — — — 11,720 
Unearned 2017 Out-Performance Plan awards accelerationUnearned 2017 Out-Performance Plan awards acceleration— — — — 10,824 — — — 10,824 
Redeemable Class A unit measurement adjustmentRedeemable Class A unit measurement adjustment— — — — 123,635 — — — 123,635 Redeemable Class A unit measurement adjustment— — — — 272,436 — — — 272,436 
Redeemable noncontrolling interests' share of above adjustmentsRedeemable noncontrolling interests' share of above adjustments— — — — — — 3,732 — 3,732 Redeemable noncontrolling interests' share of above adjustments— — — — — — 3,498 — 3,498 
Deconsolidation of partially owned entity— — — — — — — (11,441)(11,441)
OtherOther(1)— — — — Other— (1)— (1)(1)— (1,502)(1,498)
Balance as of September 30, 201936,797 $891,256 190,850 $7,613 $7,872,597 $(1,649,035)$(47,359)$635,184 $7,710,256 
Balance as of September 30, 2020Balance as of September 30, 202036,793 $891,156 191,261 $7,629 $8,123,524 $(2,463,635)$(89,834)$416,845 $6,885,685 
See notes to consolidated financial statements (unaudited).
12


VORNADO REALTY TRUST
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
(Amounts in thousands)(Amounts in thousands)For the Nine Months Ended September 30,(Amounts in thousands)For the Nine Months Ended September 30,
2020201920212020
Cash Flows from Operating Activities:Cash Flows from Operating Activities:Cash Flows from Operating Activities:
Net (loss) income$(253,119)$3,173,586 
Adjustments to reconcile net (loss) income to net cash provided by operating activities:
Equity in net loss (income) of partially owned entities353,679 (56,139)
Net income (loss)Net income (loss)$175,590 $(253,119)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization (including amortization of deferred financing costs)Depreciation and amortization (including amortization of deferred financing costs)299,749 305,905 
Distributions of income from partially owned entitiesDistributions of income from partially owned entities171,367 132,850 
Equity in net (income) loss of partially owned entitiesEquity in net (income) loss of partially owned entities(86,768)353,679 
Net gains on disposition of wholly owned and partially owned assetsNet gains on disposition of wholly owned and partially owned assets(338,862)(641,664)Net gains on disposition of wholly owned and partially owned assets(35,811)(338,862)
Depreciation and amortization (including amortization of deferred financing costs)305,905 341,951 
Net unrealized loss on real estate fund investments225,412 16,162 
Distributions of income from partially owned entities132,850 66,252 
Non-cash (gain on extinguishment of 608 Fifth Avenue lease liability) impairment loss on 608 Fifth Avenue right-of-use asset(70,260)75,220 
Write-off of lease receivables deemed uncollectible60,766 16,488 
Stock-based compensation expenseStock-based compensation expense39,638 48,045 Stock-based compensation expense32,889 39,638 
Straight-lining of rentsStraight-lining of rents20,021 8,446 Straight-lining of rents11,651 20,021 
Amortization of below-market leases, netAmortization of below-market leases, net(7,939)(13,054)
Real estate impairment lossesReal estate impairment losses7,880 — 
Write-off of lease receivables deemed uncollectibleWrite-off of lease receivables deemed uncollectible7,219 60,766 
Net unrealized loss on real estate fund investmentsNet unrealized loss on real estate fund investments789 225,412 
Gain on extinguishment of 608 Fifth Avenue lease liabilityGain on extinguishment of 608 Fifth Avenue lease liability— (70,260)
Credit losses on loans receivableCredit losses on loans receivable13,369 Credit losses on loans receivable— 13,369 
Amortization of below-market leases, net(13,054)(15,561)
Decrease in fair value of marketable securitiesDecrease in fair value of marketable securities4,938 3,095 Decrease in fair value of marketable securities— 4,938 
Net gain on transfer to Fifth Avenue and Times Square JV(2,571,099)
Real estate impairment losses26,140 
Prepayment penalty on redemption of senior unsecured notes due 202222,058 
Other non-cash adjustmentsOther non-cash adjustments7,544 3,406 Other non-cash adjustments(2,549)7,544 
Changes in operating assets and liabilities:Changes in operating assets and liabilities:Changes in operating assets and liabilities:
Real estate fund investmentsReal estate fund investments(6,502)(4,000)Real estate fund investments(789)(6,502)
Tenant and other receivables, net(27,093)(28,110)
Tenant and other receivablesTenant and other receivables(12,092)(27,093)
Prepaid assetsPrepaid assets(215,645)(74,502)Prepaid assets(44,731)(215,645)
Other assetsOther assets(41,328)(10,195)Other assets(77,508)(41,328)
Accounts payable and accrued expensesAccounts payable and accrued expenses(4,058)1,496 Accounts payable and accrued expenses43,067 (4,058)
Other liabilitiesOther liabilities(2,841)(3,104)Other liabilities(3,911)(2,841)
Net cash provided by operating activitiesNet cash provided by operating activities191,360 397,971 Net cash provided by operating activities478,103 191,360 
Cash Flows from Investing Activities:Cash Flows from Investing Activities:Cash Flows from Investing Activities:
Development costs and construction in progressDevelopment costs and construction in progress(444,645)(448,167)
Acquisition of additional 45.0% ownership interest in One Park Avenue (inclusive of $5,806 of prorations and net working capital and net of $39,370 of cash and restricted cash balances consolidated upon acquisition)Acquisition of additional 45.0% ownership interest in One Park Avenue (inclusive of $5,806 of prorations and net working capital and net of $39,370 of cash and restricted cash balances consolidated upon acquisition)(123,936)— 
Additions to real estateAdditions to real estate(113,374)(112,906)
Distributions of capital from partially owned entitiesDistributions of capital from partially owned entities106,005 1,090 
Proceeds from sales of real estateProceeds from sales of real estate100,024 — 
Proceeds from sale of condominium units at 220 Central Park SouthProceeds from sale of condominium units at 220 Central Park South939,292 1,039,493 Proceeds from sale of condominium units at 220 Central Park South97,683 939,292 
Development costs and construction in progress(448,167)(448,281)
Investments in partially owned entitiesInvestments in partially owned entities(12,366)(6,156)
Acquisitions of real estate and otherAcquisitions of real estate and other(3,000)(985)
Proceeds from repayments of loans receivableProceeds from repayments of loans receivable975 — 
Moynihan Train Hall expendituresMoynihan Train Hall expenditures(277,128)(352,211)Moynihan Train Hall expenditures— (277,128)
Additions to real estate(112,906)(189,579)
Proceeds from sales of marketable securitiesProceeds from sales of marketable securities28,375 168,314 Proceeds from sales of marketable securities— 28,375 
Investments in partially owned entities(6,156)(16,480)
Distributions of capital from partially owned entities1,090 24,880 
Acquisitions of real estate and other(985)(3,260)
Proceeds from transfer of interest in Fifth Avenue and Times Square JV (net of $35,562 of transaction costs and $10,899 of deconsolidated cash and restricted cash)1,248,743 
Proceeds from redemption of 640 Fifth Avenue preferred equity500,000 
Proceeds from sale of real estate and related investments255,534 
Proceeds from repayments of loans receivable1,395 
Net cash provided by investing activities123,415 2,228,548 
Net cash (used in) provided by investing activitiesNet cash (used in) provided by investing activities(392,634)123,415 
See notes to consolidated financial statements (unaudited).

13


VORNADO REALTY TRUST
CONSOLIDATED STATEMENTS OF CASH FLOWS - CONTINUED
(UNAUDITED)

(Amounts in thousands)(Amounts in thousands)For the Nine Months Ended September 30,(Amounts in thousands)For the Nine Months Ended September 30,
2020201920212020
Cash Flows from Financing Activities:Cash Flows from Financing Activities:Cash Flows from Financing Activities:
Dividends paid on common shares$(725,938)$(377,750)
Proceeds from borrowingsProceeds from borrowings555,918 1,107,852 Proceeds from borrowings$2,298,007 $555,918 
Repayments of borrowingsRepayments of borrowings(514,493)(2,635,028)Repayments of borrowings(1,578,843)(514,493)
Moynihan Train Hall reimbursement from Empire State Development277,128 352,211 
Contributions from noncontrolling interests98,626 9,223 
Dividends paid on common sharesDividends paid on common shares(304,516)(725,938)
Proceeds from the issuance of preferred sharesProceeds from the issuance of preferred shares291,195 — 
Distributions to noncontrolling interestsDistributions to noncontrolling interests(76,759)(65,084)Distributions to noncontrolling interests(173,356)(76,759)
Dividends paid on preferred sharesDividends paid on preferred shares(50,123)(37,598)Dividends paid on preferred shares(49,400)(50,123)
Debt issuance costsDebt issuance costs(33,935)(1,357)
Contributions from noncontrolling interestsContributions from noncontrolling interests2,657 98,626 
Proceeds received from exercise of employee share options and otherProceeds received from exercise of employee share options and other5,567 2,403 Proceeds received from exercise of employee share options and other664 5,567 
Debt issuance costs(1,357)(15,328)
Repurchase of shares related to stock compensation agreements and related tax withholdings and otherRepurchase of shares related to stock compensation agreements and related tax withholdings and other(137)(8,692)Repurchase of shares related to stock compensation agreements and related tax withholdings and other(114)(137)
Purchase of marketable securities in connection with defeasance of mortgage payable(407,126)
Prepayment penalty on redemption of senior unsecured notes due 2022(22,058)
Redemption of preferred shares(893)
Net cash used in financing activities(431,568)(2,097,868)
Net (decrease) increase in cash and cash equivalents and restricted cash(116,793)528,651 
Moynihan Train Hall reimbursement from Empire State DevelopmentMoynihan Train Hall reimbursement from Empire State Development— 277,128 
Net cash provided by (used in) financing activitiesNet cash provided by (used in) financing activities452,359 (431,568)
Net increase (decrease) in cash and cash equivalents and restricted cashNet increase (decrease) in cash and cash equivalents and restricted cash537,828 (116,793)
Cash and cash equivalents and restricted cash at beginning of periodCash and cash equivalents and restricted cash at beginning of period1,607,131 716,905 Cash and cash equivalents and restricted cash at beginning of period1,730,369 1,607,131 
Cash and cash equivalents and restricted cash at end of periodCash and cash equivalents and restricted cash at end of period$1,490,338 $1,245,556 Cash and cash equivalents and restricted cash at end of period$2,268,197 $1,490,338 
Reconciliation of Cash and Cash Equivalents and Restricted Cash:Reconciliation of Cash and Cash Equivalents and Restricted Cash:Reconciliation of Cash and Cash Equivalents and Restricted Cash:
Cash and cash equivalents at beginning of periodCash and cash equivalents at beginning of period$1,515,012 $570,916 Cash and cash equivalents at beginning of period$1,624,482 $1,515,012 
Restricted cash at beginning of periodRestricted cash at beginning of period92,119 145,989 Restricted cash at beginning of period105,887 92,119 
Cash and cash equivalents and restricted cash at beginning of periodCash and cash equivalents and restricted cash at beginning of period$1,607,131 $716,905 Cash and cash equivalents and restricted cash at beginning of period$1,730,369 $1,607,131 
Cash and cash equivalents at end of periodCash and cash equivalents at end of period$1,411,047 $1,132,491 Cash and cash equivalents at end of period$2,128,964 $1,411,047 
Restricted cash at end of periodRestricted cash at end of period79,291 113,065 Restricted cash at end of period139,233 79,291 
Cash and cash equivalents and restricted cash at end of periodCash and cash equivalents and restricted cash at end of period$1,490,338 $1,245,556 Cash and cash equivalents and restricted cash at end of period$2,268,197 $1,490,338 
Supplemental Disclosure of Cash Flow Information:Supplemental Disclosure of Cash Flow Information:Supplemental Disclosure of Cash Flow Information:
Cash payments for interest, excluding capitalized interest of $30,649 and $55,186$164,752 $227,310 
Cash payments for interest, excluding capitalized interest of $31,785 and $30,649Cash payments for interest, excluding capitalized interest of $31,785 and $30,649$137,937 $164,752 
Cash payments for income taxesCash payments for income taxes$14,252 $47,345 Cash payments for income taxes$8,426 $14,252 
Non-Cash Investing and Financing Activities:Non-Cash Investing and Financing Activities:Non-Cash Investing and Financing Activities:
Increase in assets and liabilities resulting from the consolidation of One Park Avenue:Increase in assets and liabilities resulting from the consolidation of One Park Avenue:
Real estateReal estate$566,013 $— 
Identified intangible assetsIdentified intangible assets139,545 — 
Mortgages payableMortgages payable525,000 — 
Deferred revenueDeferred revenue18,884 — 
Reclassification of Series K cumulative redeemable preferred shares to liabilities upon call for redemptionReclassification of Series K cumulative redeemable preferred shares to liabilities upon call for redemption300,000 — 
Accrued capital expenditures included in accounts payable and accrued expensesAccrued capital expenditures included in accounts payable and accrued expenses120,635 118,672 
Reclassification of assets held for sale (included in "other assets")Reclassification of assets held for sale (included in "other assets")79,421 — 
Redeemable Class A unit measurement adjustmentRedeemable Class A unit measurement adjustment(78,848)272,436 
Write-off of fully depreciated assetsWrite-off of fully depreciated assets(78,353)(111,863)
Reclassification of condominium units from "development costs and construction in progress" to
"220 Central Park South condominium units ready for sale"
Reclassification of condominium units from "development costs and construction in progress" to
"220 Central Park South condominium units ready for sale"
$370,850 $825,520 Reclassification of condominium units from "development costs and construction in progress" to
"220 Central Park South condominium units ready for sale"
11,767 370,850 
Redeemable Class A unit measurement adjustment272,436 123,635 
Accrued capital expenditures included in accounts payable and accrued expenses118,672 117,205 
Write-off of fully depreciated assets(111,863)(113,261)
Investments received in exchange for transfer to Fifth Avenue and Times Square JV:
Preferred equity2,327,750 
Common equity1,449,495 
Lease liabilities arising from the recognition of right-of-use assets526,866 
Marketable securities transferred in connection with the defeasance of mortgage payable(407,126)
Defeasance of mortgage payable390,000 
Amounts related to our investment in Pennsylvania Real Estate Investment Trust reclassified from "investments in partially owned entities" and "accumulated other comprehensive loss" to "marketable securities" upon conversion of operating partnership units to common shares54,962 
See notes to consolidated financial statements (unaudited).
14


VORNADO REALTY L.P.
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)

(Amounts in thousands, except unit amounts)(Amounts in thousands, except unit amounts)As of(Amounts in thousands, except unit amounts)As of
September 30, 2020December 31, 2019September 30, 2021December 31, 2020
ASSETSASSETSASSETS
Real estate, at cost:Real estate, at cost:Real estate, at cost:
LandLand$2,589,452 $2,591,261 Land$2,528,207 $2,420,054 
Buildings and improvementsBuildings and improvements8,004,206 7,953,163 Buildings and improvements8,449,768 7,933,030 
Development costs and construction in progressDevelopment costs and construction in progress1,514,941 1,490,614 Development costs and construction in progress1,830,660 1,604,637 
Moynihan Train Hall development expenditures1,223,600 914,960 
Leasehold improvements and equipmentLeasehold improvements and equipment128,642 124,014 Leasehold improvements and equipment111,233 130,222 
TotalTotal13,460,841 13,074,012 Total12,919,868 12,087,943 
Less accumulated depreciation and amortizationLess accumulated depreciation and amortization(3,155,416)(3,015,958)Less accumulated depreciation and amortization(3,309,273)(3,169,446)
Real estate, netReal estate, net10,305,425 10,058,054 Real estate, net9,610,595 8,918,497 
Right-of-use assetsRight-of-use assets374,805 379,546 Right-of-use assets337,130 367,365 
Cash and cash equivalentsCash and cash equivalents1,411,047 1,515,012 Cash and cash equivalents2,128,964 1,624,482 
Restricted cashRestricted cash79,291 92,119 Restricted cash139,233 105,887 
Marketable securities33,313 
Tenant and other receivablesTenant and other receivables103,051 95,733 Tenant and other receivables89,606 77,658 
Investments in partially owned entitiesInvestments in partially owned entities3,504,328 3,999,165 Investments in partially owned entities3,287,870 3,491,107 
Real estate fund investmentsReal estate fund investments3,739 222,649 Real estate fund investments3,739 3,739 
220 Central Park South condominium units ready for sale220 Central Park South condominium units ready for sale181,041 408,918 220 Central Park South condominium units ready for sale77,658 128,215 
Receivable arising from the straight-lining of rentsReceivable arising from the straight-lining of rents678,381 742,206 Receivable arising from the straight-lining of rents656,137 674,075 
Deferred leasing costs, net of accumulated amortization of $191,093 and $196,229385,089 353,986 
Identified intangible assets, net of accumulated amortization of $95,567 and $98,58725,746 30,965 
Deferred leasing costs, net of accumulated amortization of $209,266 and $196,972Deferred leasing costs, net of accumulated amortization of $209,266 and $196,972386,273 372,919 
Identified intangible assets, net of accumulated amortization of $93,643 and $93,113Identified intangible assets, net of accumulated amortization of $93,643 and $93,113158,438 23,856 
Other assetsOther assets510,955 355,347 Other assets613,157 434,022 
$17,562,898 $18,287,013  $17,488,800 $16,221,822 
LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND EQUITYLIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND EQUITYLIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND EQUITY
Mortgages payable, netMortgages payable, net$5,639,151 $5,639,897 Mortgages payable, net$6,069,512 $5,580,549 
Senior unsecured notes, netSenior unsecured notes, net446,482 445,872 Senior unsecured notes, net1,189,680 446,685 
Unsecured term loan, netUnsecured term loan, net796,499 745,840 Unsecured term loan, net797,549 796,762 
Unsecured revolving credit facilitiesUnsecured revolving credit facilities575,000 575,000 Unsecured revolving credit facilities575,000 575,000 
Lease liabilitiesLease liabilities425,646 498,254 Lease liabilities372,908 401,008 
Moynihan Train Hall obligation1,223,600 914,960 
Special distribution payable398,292 
Accounts payable and accrued expensesAccounts payable and accrued expenses430,446 440,049 Accounts payable and accrued expenses449,768 427,202 
Deferred revenueDeferred revenue45,473 59,429 Deferred revenue50,064 40,110 
Deferred compensation planDeferred compensation plan98,543 103,773 Deferred compensation plan107,860 105,564 
Preferred units to be redeemed on October 13, 2021Preferred units to be redeemed on October 13, 2021300,000 — 
Other liabilitiesOther liabilities302,622 265,754 Other liabilities305,946 294,520 
Total liabilitiesTotal liabilities9,983,462 10,087,120 Total liabilities10,218,287 8,667,400 
Commitments and contingenciesCommitments and contingenciesCommitments and contingencies00
Redeemable noncontrolling interests:Redeemable noncontrolling interests:Redeemable noncontrolling interests:
Class A units - 13,670,466 and 13,298,956 units outstanding594,934 884,380 
Series D cumulative redeemable preferred units - 141,401 units outstanding4,535 4,535 
Class A units - 14,070,794 and 13,583,607 units outstandingClass A units - 14,070,794 and 13,583,607 units outstanding591,114 507,212 
Series D cumulative redeemable preferred units - 141,400 and 141,401 units outstandingSeries D cumulative redeemable preferred units - 141,400 and 141,401 units outstanding3,535 4,535 
Total redeemable noncontrolling partnership unitsTotal redeemable noncontrolling partnership units599,469 888,915 Total redeemable noncontrolling partnership units594,649 511,747 
Redeemable noncontrolling interest in a consolidated subsidiaryRedeemable noncontrolling interest in a consolidated subsidiary94,282 Redeemable noncontrolling interest in a consolidated subsidiary96,039 94,520 
Total redeemable noncontrolling interestsTotal redeemable noncontrolling interests693,751 888,915 Total redeemable noncontrolling interests690,688 606,267 
Partners' equity:Partners' equity:Partners' equity:
Partners' capitalPartners' capital9,022,309 8,726,529 Partners' capital9,328,482 9,382,479 
Earnings less than distributionsEarnings less than distributions(2,463,635)(1,954,266)Earnings less than distributions(2,988,999)(2,774,182)
Accumulated other comprehensive lossAccumulated other comprehensive loss(89,834)(40,233)Accumulated other comprehensive loss(45,179)(75,099)
Total partners' equityTotal partners' equity6,468,840 6,732,030 Total partners' equity6,294,304 6,533,198 
Noncontrolling interests in consolidated subsidiariesNoncontrolling interests in consolidated subsidiaries416,845 578,948 Noncontrolling interests in consolidated subsidiaries285,521 414,957 
Total equityTotal equity6,885,685 7,310,978 Total equity6,579,825 6,948,155 
$17,562,898 $18,287,013  $17,488,800 $16,221,822 
See notes to consolidated financial statements (unaudited).
15


VORNADO REALTY L.P.
CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
(Amounts in thousands, except per unit amounts)(Amounts in thousands, except per unit amounts)For the Three Months Ended September 30,For the Nine Months Ended September 30,(Amounts in thousands, except per unit amounts)For the Three Months Ended September 30,For the Nine Months Ended September 30,
20202019202020192021202020212020
REVENUES:REVENUES:REVENUES:
Rental revenuesRental revenues$322,253 $427,638 $1,038,721 $1,348,814 Rental revenues$369,203 $322,253 $1,048,116 $1,038,721 
Fee and other incomeFee and other income41,709 38,323 112,799 114,918 Fee and other income40,009 41,709 120,014 112,799 
Total revenuesTotal revenues363,962 465,961 1,151,520 1,463,732 Total revenues409,212 363,962 1,168,130 1,151,520 
EXPENSES:EXPENSES:EXPENSES:
OperatingOperating(195,645)(226,359)(600,077)(694,006)Operating(212,699)(195,645)(594,598)(600,077)
Depreciation and amortizationDepreciation and amortization(107,013)(96,437)(292,611)(326,181)Depreciation and amortization(100,867)(107,013)(285,998)(292,611)
General and administrativeGeneral and administrative(32,407)(33,237)(120,255)(130,129)General and administrative(25,553)(32,407)(100,341)(120,255)
(Expense) benefit from deferred compensation plan liability(Expense) benefit from deferred compensation plan liability(4,341)(974)548 (7,722)(Expense) benefit from deferred compensation plan liability(799)(4,341)(7,422)548 
(Expense from transaction related costs and impairment losses) and gain from lease liability extinguishment, net(584)(1,576)68,566 (103,315)
(Impairment losses, transaction related costs and other) lease liability extinguishment gain(Impairment losses, transaction related costs and other) lease liability extinguishment gain(9,681)(584)(10,630)68,566 
Total expensesTotal expenses(339,990)(358,583)(943,829)(1,261,353)Total expenses(349,599)(339,990)(998,989)(943,829)
(Loss) income from partially owned entities(80,909)25,946 (353,679)56,139 
Income (loss) from partially owned entitiesIncome (loss) from partially owned entities26,269 (80,909)86,768 (353,679)
(Loss) income from real estate fund investments(Loss) income from real estate fund investments(13,823)2,190 (225,328)(13,780)(Loss) income from real estate fund investments(66)(13,823)5,107 (225,328)
Interest and other investment income (loss), netInterest and other investment income (loss), net1,729 3,045 (7,068)15,930 Interest and other investment income (loss), net633 1,729 3,694 (7,068)
Income (loss) from deferred compensation plan assetsIncome (loss) from deferred compensation plan assets4,341 974 (548)7,722 Income (loss) from deferred compensation plan assets799 4,341 7,422 (548)
Interest and debt expenseInterest and debt expense(57,371)(61,448)(174,618)(226,940)Interest and debt expense(50,946)(57,371)(152,904)(174,618)
Net gain on transfer to Fifth Avenue and Times Square JV2,571,099 
Net gains on disposition of wholly owned and partially owned assetsNet gains on disposition of wholly owned and partially owned assets214,578 309,657 338,862 641,664 Net gains on disposition of wholly owned and partially owned assets10,087 214,578 35,811 338,862 
Income (loss) before income taxesIncome (loss) before income taxes92,517 387,742 (214,688)3,254,213 Income (loss) before income taxes46,389 92,517 155,039 (214,688)
Income tax expense(23,781)(23,885)(38,431)(80,542)
Income (loss) from continuing operations68,736 363,857 (253,119)3,173,671 
Loss from discontinued operations(8)(85)
Income tax benefit (expense)Income tax benefit (expense)25,376 (23,781)20,551 (38,431)
Net income (loss)Net income (loss)68,736 363,849 (253,119)3,173,586 Net income (loss)71,765 68,736 175,590 (253,119)
Less net loss (income) attributable to noncontrolling interests in consolidated subsidiaries848 (5,774)141,003 (34,045)
Less net (income) loss attributable to noncontrolling interests in consolidated subsidiariesLess net (income) loss attributable to noncontrolling interests in consolidated subsidiaries(5,425)848 (20,323)141,003 
Net income (loss) attributable to Vornado Realty L.P.Net income (loss) attributable to Vornado Realty L.P.69,584 358,075 (112,116)3,139,541 Net income (loss) attributable to Vornado Realty L.P.66,340 69,584 155,267 (112,116)
Preferred unit distributionsPreferred unit distributions(12,572)(12,574)(37,715)(37,722)Preferred unit distributions(16,842)(12,572)(49,858)(37,715)
Series K preferred unit issuance costsSeries K preferred unit issuance costs(9,033)— (9,033)— 
NET INCOME (LOSS) attributable to Class A unitholdersNET INCOME (LOSS) attributable to Class A unitholders$57,012 $345,501 $(149,831)$3,101,819 NET INCOME (LOSS) attributable to Class A unitholders$40,465 $57,012 $96,376 $(149,831)
INCOME (LOSS) PER CLASS A UNIT - BASIC:INCOME (LOSS) PER CLASS A UNIT - BASIC:INCOME (LOSS) PER CLASS A UNIT - BASIC:
Net income (loss) per Class A unitNet income (loss) per Class A unit$0.28 $1.69 $(0.76)$15.21 Net income (loss) per Class A unit$0.19 $0.28 $0.46 $(0.76)
Weighted average units outstandingWeighted average units outstanding203,554 203,009 203,480 202,903 Weighted average units outstanding204,864 203,554 204,663 203,480 
INCOME (LOSS) PER CLASS A UNIT - DILUTED:INCOME (LOSS) PER CLASS A UNIT - DILUTED:INCOME (LOSS) PER CLASS A UNIT - DILUTED:
Net income (loss) per Class A unitNet income (loss) per Class A unit$0.28 $1.69 $(0.76)$15.18 Net income (loss) per Class A unit$0.19 $0.28 $0.46 $(0.76)
Weighted average units outstandingWeighted average units outstanding203,554 203,550 203,480 203,416 Weighted average units outstanding205,703 203,554 205,616 203,480 
See notes to consolidated financial statements (unaudited).
16


VORNADO REALTY L.P.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(UNAUDITED)
(Amounts in thousands)(Amounts in thousands)For the Three Months Ended September 30,For the Nine Months Ended September 30,(Amounts in thousands)For the Three Months Ended September 30,For the Nine Months Ended September 30,
20202019202020192021202020212020
Net income (loss)Net income (loss)$68,736 $363,849 $(253,119)$3,173,586 Net income (loss)$71,765 $68,736 $175,590 $(253,119)
Other comprehensive (loss) income:
Other comprehensive (loss) income of nonconsolidated subsidiaries(15,634)11 (15,626)(949)
Other comprehensive income (loss):Other comprehensive income (loss):
Increase (reduction) in value of interest rate swaps and otherIncrease (reduction) in value of interest rate swaps and other7,926 (9,954)(37,473)(55,495)Increase (reduction) in value of interest rate swaps and other5,362 7,926 25,555 (37,473)
Amounts reclassified from accumulated other comprehensive loss relating to a nonconsolidated subsidiary(2,311)
Other comprehensive income (loss) of nonconsolidated subsidiariesOther comprehensive income (loss) of nonconsolidated subsidiaries1,322 (15,634)6,381 (15,626)
Comprehensive income (loss)Comprehensive income (loss)61,028 353,906 (306,218)3,114,831 Comprehensive income (loss)78,449 61,028 207,526 (306,218)
Less comprehensive (income) loss attributable to noncontrolling interests in
consolidated subsidiaries
Less comprehensive (income) loss attributable to noncontrolling interests in
consolidated subsidiaries
848 (5,774)141,003 (34,045)Less comprehensive (income) loss attributable to noncontrolling interests in consolidated subsidiaries(5,425)848 (20,323)141,003 
Comprehensive income (loss) attributable to Vornado Realty L.P.Comprehensive income (loss) attributable to Vornado Realty L.P.$61,876 $348,132 $(165,215)$3,080,786 Comprehensive income (loss) attributable to Vornado Realty L.P.$73,024 $61,876 $187,203 $(165,215)

See notes to consolidated financial statements (unaudited).
17


VORNADO REALTY L.P.
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
(UNAUDITED)
(Amounts in thousands, except per unit amounts)(Amounts in thousands, except per unit amounts)Non-controlling Interests in Consolidated Subsidiaries(Amounts in thousands, except per unit amounts)Accumulated
Other
Comprehensive
(Loss) Income
Non-controlling Interests in Consolidated Subsidiaries
Preferred UnitsClass A Units
Owned by Vornado
Earnings
Less Than
Distributions
Accumulated Other Comprehensive LossTotal EquityPreferred UnitsClass A Units
Owned by Vornado
Earnings
Less Than
Distributions
Total Equity
UnitsAmountUnitsAmountNon-controlling Interests in Consolidated SubsidiariesUnitsAmountUnitsAmountNon-controlling Interests in Consolidated Subsidiaries
For the Three Months Ended
September 30, 2020:
Balance as of June 30, 202036,794 $891,164 191,151 $8,103,399 $(2,415,500)$(82,646)$432,492 $6,928,909 
For the Three Months Ended
September 30, 2021
For the Three Months Ended
September 30, 2021
Balance as of June 30, 2021Balance as of June 30, 202148,793 $1,182,291 191,561 $8,076,674 $(2,925,161)$(51,437)$285,950 $6,568,317 
Net income attributable to Vornado Realty L.P.Net income attributable to Vornado Realty L.P.— — — — 69,584 — — 69,584 Net income attributable to Vornado Realty L.P.— — — — 66,340 — — 66,340 
Net income attributable to redeemable partnership unitsNet income attributable to redeemable partnership units— — — — (3,884)— — (3,884)Net income attributable to redeemable partnership units— — — — (2,818)— — (2,818)
Net loss attributable to nonredeemable
noncontrolling interests in consolidated
subsidiaries
— — — — — — (1,019)(1,019)
Net income attributable to nonredeemable noncontrolling interests in consolidated subsidiariesNet income attributable to nonredeemable noncontrolling interests in consolidated subsidiaries— — — — — — 4,299 4,299 
Distributions to Vornado
($0.53 per unit)
Distributions to Vornado
($0.53 per unit)
— — — — (101,311)— — (101,311)
Distributions to Vornado
($0.53 per unit)
— — — — (101,527)— — (101,527)
Distributions to preferred unitholders (see Note 13 for distributions per unit amounts)— — — — (12,530)— — (12,530)
Distributions to preferred unitholders (see Note 12 for distributions per unit amounts)Distributions to preferred unitholders (see Note 12 for distributions per unit amounts)— — — — (16,800)— — (16,800)
Series O cumulative redeemable preferred units issuanceSeries O cumulative redeemable preferred units issuance12,000 291,195 — — — — — 291,195 
Class A units issued to Vornado:Class A units issued to Vornado:Class A units issued to Vornado:
Upon redemption of redeemable Class A units, at redemption valueUpon redemption of redeemable Class A units, at redemption value— — 100 3,586 — — — 3,586 Upon redemption of redeemable Class A units, at redemption value— — 114 4,749 — — — 4,749 
Under Vornado's dividend reinvestment planUnder Vornado's dividend reinvestment plan— — 300 — — — 300 Under Vornado's dividend reinvestment plan— — 224 — — — 224 
ContributionsContributions— — — — — — 358 358 Contributions— — — — — — 1,110 1,110 
DistributionsDistributions— — — — — — (14,987)(14,987)Distributions— — — — — — (5,877)(5,877)
Conversion of Series A preferred units to Class A unitsConversion of Series A preferred units to Class A units(1)(7)— — — Conversion of Series A preferred units to Class A units— (13)13 — — — — 
Deferred compensation units and optionsDeferred compensation units and options— — 304 — — — 304 Deferred compensation units and options— — (1)226 — — — 226 
Other comprehensive loss of nonconsolidated subsidiaries— — — — — (15,634)— (15,634)
Other comprehensive income of nonconsolidated subsidiariesOther comprehensive income of nonconsolidated subsidiaries— — — — — 1,322 — 1,322 
Increase in value of interest rate swapsIncrease in value of interest rate swaps— — — — — 7,926 — 7,926 Increase in value of interest rate swaps— — — — — 5,360 — 5,360 
Redeemable Class A unit measurement adjustmentRedeemable Class A unit measurement adjustment— — — 23,557 — — — 23,557 Redeemable Class A unit measurement adjustment— — — 64,100 — — — 64,100 
Series K cumulative redeemable preferred units called for redemptionSeries K cumulative redeemable preferred units called for redemption(12,000)(290,967)— — (9,033)— — (300,000)
Redeemable partnership units' share of above adjustmentsRedeemable partnership units' share of above adjustments— — — — — 520 — 520 Redeemable partnership units' share of above adjustments— — — — — (426)— (426)
OtherOther— (1)— — Other— (7)— (3)— 39 31 
Balance as of September 30, 202036,793 $891,156 191,261 $8,131,153 $(2,463,635)$(89,834)$416,845 $6,885,685 
Balance as of September 30, 2021Balance as of September 30, 202148,793 $1,182,499 191,681 $8,145,983 $(2,988,999)$(45,179)$285,521 $6,579,825 
See notes to consolidated financial statements (unaudited).
18


VORNADO REALTY L.P.
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY - CONTINUED
(UNAUDITED)

(Amounts in thousands, except per unit amounts)(Amounts in thousands, except per unit amounts)Earnings
Less Than
Distributions
Accumulated
Other
Comprehensive
Loss
Non-
controlling
Interests in
Consolidated
Subsidiaries
(Amounts in thousands, except per unit amounts)Accumulated
Other
Comprehensive
(Loss) Income
Non-controlling Interests in Consolidated Subsidiaries
Preferred UnitsClass A Units
Owned by Vornado
Total EquityPreferred UnitsClass A Units
Owned by Vornado
Earnings
Less Than
Distributions
Total Equity
UnitsAmountUnitsAmountEarnings
Less Than
Distributions
Accumulated
Other
Comprehensive
Loss
Non-
controlling
Interests in
Consolidated
Subsidiaries
UnitsAmountUnitsAmountNon-controlling Interests in Consolidated Subsidiaries
For the Three Months Ended
September 30, 2019:
Balance as of June 30, 201936,797 $891,256 190,813 $7,853,359 $(1,845,995)$(38,066)$635,590 $7,496,144 
For the Three Months Ended
September 30, 2020
For the Three Months Ended
September 30, 2020
Balance as of June 30, 2020Balance as of June 30, 202036,794 $891,164 191,151 $8,103,399 $(2,415,500)$(82,646)$432,492 $6,928,909 
Net income attributable to Vornado Realty L.P.Net income attributable to Vornado Realty L.P.— — — — 358,075 — — 358,075 Net income attributable to Vornado Realty L.P.— — — — 69,584 — — 69,584 
Net income attributable to redeemable partnership unitsNet income attributable to redeemable partnership units— — — — (22,637)— — (22,637)Net income attributable to redeemable partnership units— — — — (3,884)— — (3,884)
Net income attributable to noncontrolling interests in consolidated subsidiaries— — — — — — 5,774 5,774 
Distributions to Vornado
($0.66 per unit)
— — — — (125,947)— — (125,947)
Distributions to preferred unitholders (see Note 13 for distributions per unit amounts)— — — — (12,532)— — (12,532)
Class A Units issued to Vornado:
Net loss attributable to nonredeemable noncontrolling interests in consolidated subsidiariesNet loss attributable to nonredeemable noncontrolling interests in consolidated subsidiaries— — — — — — (1,019)(1,019)
Distributions to Vornado
($0.53 per unit)
Distributions to Vornado
($0.53 per unit)
— — — — (101,311)— — (101,311)
Distributions to preferred unitholders (see Note 12 for distributions per unit amounts)Distributions to preferred unitholders (see Note 12 for distributions per unit amounts)— — — — (12,530)— — (12,530)
Class A units issued to Vornado:Class A units issued to Vornado:
Upon redemption of redeemable Class A units, at redemption valueUpon redemption of redeemable Class A units, at redemption value— — 31 1,999 — — — 1,999 Upon redemption of redeemable Class A units, at redemption value— — 100 3,586 — — — 3,586 
Under Vornado's dividend reinvestment planUnder Vornado's dividend reinvestment plan— — 357 — — — 357 Under Vornado's dividend reinvestment plan— — 300 — — — 300 
ContributionsContributions— — — — — — 908 908 Contributions— — — — — — 358 358 
Distributions:
Real estate fund investments— — — — — — (6)(6)
Other— — — — — — (7,086)(7,086)
DistributionsDistributions— — — — — — (14,987)(14,987)
Conversion of Series A preferred units to Class A unitsConversion of Series A preferred units to Class A units(1)(7)— — — — — 
Deferred compensation units and optionsDeferred compensation units and options— — — 266 — — — 266 Deferred compensation units and options— — — 304 — — — 304 
Other comprehensive income of nonconsolidated subsidiaries— — — — — 11 — 11 
Reduction in value of interest rate swaps— — — — — (9,953)— (9,953)
Other comprehensive loss of nonconsolidated subsidiariesOther comprehensive loss of nonconsolidated subsidiaries— — — — — (15,634)— (15,634)
Increase in value of interest rate swapsIncrease in value of interest rate swaps— — — — — 7,926 — 7,926 
Redeemable Class A unit measurement adjustmentRedeemable Class A unit measurement adjustment— — — 24,228 — — — 24,228 Redeemable Class A unit measurement adjustment— — — 23,557 — — — 23,557 
Redeemable partnership units' share of above adjustmentsRedeemable partnership units' share of above adjustments— — — — — 650 — 650 Redeemable partnership units' share of above adjustments— — — — — 520 — 520 
OtherOther— — — (1)Other— (1)— — 
Balance as of September 30, 201936,797 $891,256 190,850 $7,880,210 $(1,649,035)$(47,359)$635,184 $7,710,256 
Balance as of September 30, 2020Balance as of September 30, 202036,793 $891,156 191,261 $8,131,153 $(2,463,635)$(89,834)$416,845 $6,885,685 
See notes to consolidated financial statements (unaudited).
19


VORNADO REALTY L.P.
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY - CONTINUED
(UNAUDITED)

(Amounts in thousands, except per unit amounts)Accumulated
Other
Comprehensive
Loss
Non-
controlling
Interests in
Consolidated
Subsidiaries
Preferred UnitsClass A Units
Owned by Vornado
Earnings
Less Than
Distributions
Total Equity
UnitsAmountUnitsAmount
For the Nine Months Ended
September 30, 2020:
Balance as of December 31, 201936,796 $891,214 190,986 $7,835,315 $(1,954,266)$(40,233)$578,948 $7,310,978 
Cumulative effect of accounting change
    (see Note 4)
— — — — (16,064)— — (16,064)
Net loss attributable to Vornado Realty L.P.— — — — (112,116)— — (112,116)
Net loss attributable to redeemable partnership
units
— — — — 10,090 — — 10,090 
Net loss attributable to nonredeemable
noncontrolling interests in consolidated
subsidiaries
— — — — — — (141,310)(141,310)
Distributions to Vornado
($1.85 per unit)
— — — — (353,558)— — (353,558)
Distributions to preferred unitholders (see Note 13 for distributions per unit amounts)— — — — (37,591)— — (37,591)
Class A units issued to Vornado:
Upon redemption of redeemable Class A units, at redemption value— — 149 6,050 — — — 6,050 
Under Vornado's employees' share option plan— — 69 3,517 — — — 3,517 
Under Vornado's dividend reinvestment plan— — 40 2,050 — — — 2,050 
Contributions:
Real estate fund investments— — — — — — 3,389 3,389 
Other— — — — — — 2,837 2,837 
Distributions— — — — — — (25,517)(25,517)
Conversion of Series A preferred units to Class A units(3)(57)57 — — — 
Deferred compensation units and options— — 13 906 (137)— — 769 
Other comprehensive loss of nonconsolidated
subsidiaries
— — — — — (15,626)— (15,626)
Reduction in value of interest rate swaps— — — — — (37,473)— (37,473)
Unearned 2017 Out-Performance Plan awards acceleration— — — 10,824 — — — 10,824 
Redeemable Class A unit measurement adjustment— — — 272,436 — — — 272,436 
Redeemable partnership units' share of above adjustments— — — — — 3,498 — 3,498 
Other— (1)— (2)— (1,502)(1,498)
Balance as of September 30, 202036,793 $891,156 191,261 $8,131,153 $(2,463,635)$(89,834)$416,845 $6,885,685 
(Amounts in thousands, except per unit amounts)Earnings
Less Than
Distributions
Accumulated
Other
Comprehensive
(Loss) Income
Non-controlling Interests in Consolidated Subsidiaries
Preferred UnitsClass A Units
Owned by Vornado
Total Equity
UnitsAmountUnitsAmount
For the Nine Months Ended
September 30, 2021
Balance as of December 31, 202048,793 $1,182,339 191,355 $8,200,140 $(2,774,182)$(75,099)$414,957 $6,948,155 
Net income attributable to Vornado Realty L.P.— — — — 155,267 — — 155,267 
Net income attributable to redeemable partnership units— — — — (6,683)— — (6,683)
Net income attributable to nonredeemable noncontrolling interests in consolidated subsidiaries— — — — — — 18,804 18,804 
Distributions to Vornado
($1.59 per unit)
— — — — (304,516)— — (304,516)
Distributions to preferred unitholders (see Note 12 for distributions per unit amounts)— — — — (49,734)— — (49,734)
Series O cumulative redeemable preferred units issuance12,000 291,195 — — — — — 291,195 
Class A Units issued to Vornado:
Upon redemption of redeemable Class A units, at redemption value— — 313 13,058 — — — 13,058 
Under Vornado's employees' share option plan— — — 10 — — — 10 
Under Vornado's dividend reinvestment plan— — 16 654 — — — 654 
Contributions— — — — — — 2,657 2,657 
Distributions— — — — — — (150,934)(150,934)
Conversion of Series A preferred units to Class A units— (13)13 — — — — 
Deferred compensation units and options— — (4)675 (114)— — 561 
Other comprehensive income of nonconsolidated subsidiaries— — — — — 6,381 — 6,381 
Increase in value of interest rate swaps— — — — — 25,553 — 25,553 
Unearned 2018 Out-Performance Plan awards acceleration— — — 10,283 — — — 10,283 
Redeemable Class A unit measurement adjustment— — — (78,848)— — — (78,848)
Series K cumulative redeemable preferred units called for redemption(12,000)(290,967)— — (9,033)— — (300,000)
Redeemable partnership units' share of above adjustments— — — — — (2,016)— (2,016)
Other— (55)— (2)(4)37 (22)
Balance as of September 30, 202148,793 $1,182,499 191,681 $8,145,983 $(2,988,999)$(45,179)$285,521 $6,579,825 
See notes to consolidated financial statements (unaudited).
20


VORNADO REALTY L.P.
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY - CONTINUED
(UNAUDITED)

(Amounts in thousands, except per unit amounts)(Amounts in thousands, except per unit amounts)Accumulated
Other
Comprehensive
Income (Loss)
Non-
controlling
Interests in
Consolidated
Subsidiaries
(Amounts in thousands, except per unit amounts)Earnings
Less Than
Distributions
Accumulated
Other
Comprehensive
Loss
Non-controlling Interests in Consolidated Subsidiaries
Preferred UnitsClass A Units
Owned by Vornado
Earnings
Less Than
Distributions
Total
Equity
Preferred UnitsClass A Units
Owned by Vornado
Total Equity
UnitsAmountUnitsAmountNon-
controlling
Interests in
Consolidated
Subsidiaries
UnitsAmountUnitsAmountEarnings
Less Than
Distributions
Accumulated
Other
Comprehensive
Loss
Non-controlling Interests in Consolidated Subsidiaries
For the Nine Months Ended
September 30, 2019:
Balance as of December 31, 201836,800 $891,294 190,535 $7,733,457 $(4,167,184)$7,664 $642,652 $5,107,883 
For the Nine Months Ended
September 30, 2020
For the Nine Months Ended
September 30, 2020
Balance as of December 31, 2019Balance as of December 31, 201936,796 $891,214 190,986 $7,835,315 $(1,954,266)$(40,233)$578,948 $7,310,978 
Cumulative effect of accounting changeCumulative effect of accounting change— — — — (16,064)— — (16,064)
Net loss attributable to Vornado Realty L.P.Net loss attributable to Vornado Realty L.P.— — — — (112,116)— — (112,116)
Net loss attributable to redeemable partnership unitsNet loss attributable to redeemable partnership units— — — — 10,090 — — 10,090 
Net loss attributable to nonredeemable noncontrolling interests in consolidated subsidiariesNet loss attributable to nonredeemable noncontrolling interests in consolidated subsidiaries— — — — — — (141,310)(141,310)
Distributions to Vornado
($1.85 per unit)
Distributions to Vornado
($1.85 per unit)
— — — — (353,558)— — (353,558)
Distributions to preferred unitholders (see Note 12 for distributions per unit amounts)Distributions to preferred unitholders (see Note 12 for distributions per unit amounts)— — — — (37,591)— — (37,591)
Net income attributable to Vornado Realty L.P.— — — — 3,139,541 — — 3,139,541 
Net income attributable to redeemable partnership units— — — — (197,354)— — (197,354)
Net income attributable to noncontrolling interests in consolidated subsidiaries— — — — — — 34,045 34,045 
Distributions to Vornado
($1.98 per unit)
— — — — (377,750)— — (377,750)
Distributions to preferred unitholders (see Note 13 for distributions per unit amounts)— — — — (37,598)— — (37,598)
Class A units issued to Vornado:
Class A Units issued to Vornado:Class A Units issued to Vornado:
Upon redemption of redeemable Class A units, at redemption valueUpon redemption of redeemable Class A units, at redemption value— — 123 8,128 — — — 8,128 Upon redemption of redeemable Class A units, at redemption value— — 149 6,050 — — — 6,050 
Under Vornado's employees' share option planUnder Vornado's employees' share option plan— — 165 1,345 (8,692)— — (7,347)Under Vornado's employees' share option plan— — 69 3,517 — — — 3,517 
Under Vornado's dividend reinvestment planUnder Vornado's dividend reinvestment plan— — 16 1,058 — — — 1,058 Under Vornado's dividend reinvestment plan— — 40 2,050 — — — 2,050 
Contributions:Contributions:Contributions:
Real estate fund investmentsReal estate fund investments— — — — — — 3,384 3,384 Real estate fund investments— — — — — — 3,389 3,389 
OtherOther— — — — — — 5,839 5,839 Other— — — — — — 2,837 2,837 
DistributionsDistributions— — — — — — (25,517)(25,517)
Distributions:
Real estate fund investments— — — — — — (6)(6)
Other— — — — — — (39,290)(39,290)
Preferred unit issuance(2)(38)38 — — — 
Conversion of Series A preferred units to Class A unitsConversion of Series A preferred units to Class A units(3)(57)57 — — — — 
Deferred compensation units and optionsDeferred compensation units and options— — 829 — — — 829 Deferred compensation units and options— — 13 906 (137)— — 769 
Amount reclassified related to a nonconsolidated subsidiary— — — — — (2,311)— (2,311)
Other comprehensive loss of nonconsolidated subsidiariesOther comprehensive loss of nonconsolidated subsidiaries— — — — — (949)— (949)Other comprehensive loss of nonconsolidated subsidiaries— — — — — (15,626)— (15,626)
Reduction in value of interest rate swapsReduction in value of interest rate swaps— — — — — (55,497)— (55,497)Reduction in value of interest rate swaps— — — — — (37,473)— (37,473)
Unearned 2016 Out-Performance Plan awards acceleration— — — 11,720 — — — 11,720 
Unearned 2017 Out-Performance Plan awards accelerationUnearned 2017 Out-Performance Plan awards acceleration— — — 10,824 — — — 10,824 
Redeemable Class A unit measurement adjustmentRedeemable Class A unit measurement adjustment— — — 123,635 — — — 123,635 Redeemable Class A unit measurement adjustment— — — 272,436 — — — 272,436 
Redeemable partnership units' share of above adjustmentsRedeemable partnership units' share of above adjustments— — — — — 3,732 — 3,732 Redeemable partnership units' share of above adjustments— — — — — 3,498 — 3,498 
Deconsolidation of partially owned entity— — — — — — (11,441)(11,441)
OtherOther(1)— — — Other— (1)— (2)— (1,502)(1,498)
Balance as of September 30, 201936,797 $891,256 190,850 $7,880,210 $(1,649,035)$(47,359)$635,184 $7,710,256 
Balance as of September 30, 2020Balance as of September 30, 202036,793 $891,156 191,261 $8,131,153 $(2,463,635)$(89,834)$416,845 $6,885,685 
See notes to consolidated financial statements (unaudited).
21


VORNADO REALTY L.P.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
(Amounts in thousands)(Amounts in thousands)For the Nine Months Ended September 30,(Amounts in thousands)For the Nine Months Ended September 30,
2020201920212020
Cash Flows from Operating Activities:Cash Flows from Operating Activities:Cash Flows from Operating Activities:
Net (loss) income$(253,119)$3,173,586 
Adjustments to reconcile net (loss) income to net cash provided by operating activities:
Equity in net loss (income) of partially owned entities353,679 (56,139)
Net income (loss)Net income (loss)$175,590 $(253,119)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization (including amortization of deferred financing costs)Depreciation and amortization (including amortization of deferred financing costs)299,749 305,905 
Distributions of income from partially owned entitiesDistributions of income from partially owned entities171,367 132,850 
Equity in net (income) loss of partially owned entitiesEquity in net (income) loss of partially owned entities(86,768)353,679 
Net gains on disposition of wholly owned and partially owned assetsNet gains on disposition of wholly owned and partially owned assets(338,862)(641,664)Net gains on disposition of wholly owned and partially owned assets(35,811)(338,862)
Depreciation and amortization (including amortization of deferred financing costs)305,905 341,951 
Net unrealized loss on real estate fund investments225,412 16,162 
Distributions of income from partially owned entities132,850 66,252 
Non-cash (gain on extinguishment of 608 Fifth Avenue lease liability) impairment loss on 608 Fifth Avenue right-of-use asset(70,260)75,220 
Write-off of lease receivables deemed uncollectible60,766 16,488 
Stock-based compensation expenseStock-based compensation expense39,638 48,045 Stock-based compensation expense32,889 39,638 
Straight-lining of rentsStraight-lining of rents20,021 8,446 Straight-lining of rents11,651 20,021 
Amortization of below-market leases, netAmortization of below-market leases, net(7,939)(13,054)
Real estate impairment lossesReal estate impairment losses7,880 — 
Write-off of lease receivables deemed uncollectibleWrite-off of lease receivables deemed uncollectible7,219 60,766 
Net unrealized loss on real estate fund investmentsNet unrealized loss on real estate fund investments789 225,412 
Gain on extinguishment of 608 Fifth Avenue lease liabilityGain on extinguishment of 608 Fifth Avenue lease liability— (70,260)
Credit losses on loans receivableCredit losses on loans receivable13,369 Credit losses on loans receivable— 13,369 
Amortization of below-market leases, net(13,054)(15,561)
Decrease in fair value of marketable securitiesDecrease in fair value of marketable securities4,938 3,095 Decrease in fair value of marketable securities— 4,938 
Net gain on transfer to Fifth Avenue and Times Square JV(2,571,099)
Real estate impairment losses26,140 
Prepayment penalty on redemption of senior unsecured notes due 202222,058 
Other non-cash adjustmentsOther non-cash adjustments7,544 3,406 Other non-cash adjustments(2,549)7,544 
Changes in operating assets and liabilities:Changes in operating assets and liabilities:Changes in operating assets and liabilities:
Real estate fund investmentsReal estate fund investments(6,502)(4,000)Real estate fund investments(789)(6,502)
Tenant and other receivables, net(27,093)(28,110)
Tenant and other receivablesTenant and other receivables(12,092)(27,093)
Prepaid assetsPrepaid assets(215,645)(74,502)Prepaid assets(44,731)(215,645)
Other assetsOther assets(41,328)(10,195)Other assets(77,508)(41,328)
Accounts payable and accrued expensesAccounts payable and accrued expenses(4,058)1,496 Accounts payable and accrued expenses43,067 (4,058)
Other liabilitiesOther liabilities(2,841)(3,104)Other liabilities(3,911)(2,841)
Net cash provided by operating activitiesNet cash provided by operating activities191,360 397,971 Net cash provided by operating activities478,103 191,360 
Cash Flows from Investing Activities:Cash Flows from Investing Activities:Cash Flows from Investing Activities:
Development costs and construction in progressDevelopment costs and construction in progress(444,645)(448,167)
Acquisition of additional 45.0% ownership interest in One Park Avenue (inclusive of $5,806 of prorations and net working capital and net of $39,370 of cash and restricted cash balances consolidated upon acquisition)Acquisition of additional 45.0% ownership interest in One Park Avenue (inclusive of $5,806 of prorations and net working capital and net of $39,370 of cash and restricted cash balances consolidated upon acquisition)(123,936)— 
Additions to real estateAdditions to real estate(113,374)(112,906)
Distributions of capital from partially owned entitiesDistributions of capital from partially owned entities106,005 1,090 
Proceeds from sales of real estateProceeds from sales of real estate100,024 — 
Proceeds from sale of condominium units at 220 Central Park SouthProceeds from sale of condominium units at 220 Central Park South939,292 1,039,493 Proceeds from sale of condominium units at 220 Central Park South97,683 939,292 
Development costs and construction in progress(448,167)(448,281)
Investments in partially owned entitiesInvestments in partially owned entities(12,366)(6,156)
Acquisitions of real estate and otherAcquisitions of real estate and other(3,000)(985)
Proceeds from repayments of loans receivableProceeds from repayments of loans receivable975 — 
Moynihan Train Hall expendituresMoynihan Train Hall expenditures(277,128)(352,211)Moynihan Train Hall expenditures— (277,128)
Additions to real estate(112,906)(189,579)
Proceeds from sales of marketable securitiesProceeds from sales of marketable securities28,375 168,314 Proceeds from sales of marketable securities— 28,375 
Investments in partially owned entities(6,156)(16,480)
Distributions of capital from partially owned entities1,090 24,880 
Acquisitions of real estate and other(985)(3,260)
Proceeds from transfer of interest in Fifth Avenue and Times Square JV (net of $35,562 of transaction costs and $10,899 of deconsolidated cash and restricted cash)1,248,743 
Proceeds from redemption of 640 Fifth Avenue preferred equity500,000 
Proceeds from sale of real estate and related investments255,534 
Proceeds from repayments of loans receivable1,395 
Net cash provided by investing activities123,415 2,228,548 
Net cash (used in) provided by investing activitiesNet cash (used in) provided by investing activities(392,634)123,415 
See notes to consolidated financial statements (unaudited).

22


VORNADO REALTY L.P.
CONSOLIDATED STATEMENTS OF CASH FLOWS - CONTINUED
(UNAUDITED)
(Amounts in thousands)(Amounts in thousands)For the Nine Months Ended September 30,(Amounts in thousands)For the Nine Months Ended September 30,
2020201920212020
Cash Flows from Financing Activities:Cash Flows from Financing Activities:Cash Flows from Financing Activities:
Distributions to Vornado$(725,938)$(377,750)
Proceeds from borrowingsProceeds from borrowings555,918 1,107,852 Proceeds from borrowings$2,298,007 $555,918 
Repayments of borrowingsRepayments of borrowings(514,493)(2,635,028)Repayments of borrowings(1,578,843)(514,493)
Moynihan Train Hall reimbursement from Empire State Development277,128 352,211 
Contributions from noncontrolling interests in consolidated subsidiaries98,626 9,223 
Distributions to VornadoDistributions to Vornado(304,516)(725,938)
Proceeds from the issuance of preferred unitsProceeds from the issuance of preferred units291,195 — 
Distributions to redeemable security holders and noncontrolling interests in consolidated subsidiariesDistributions to redeemable security holders and noncontrolling interests in consolidated subsidiaries(76,759)(65,084)Distributions to redeemable security holders and noncontrolling interests in consolidated subsidiaries(173,356)(76,759)
Distributions to preferred unitholdersDistributions to preferred unitholders(50,123)(37,598)Distributions to preferred unitholders(49,400)(50,123)
Debt issuance costsDebt issuance costs(33,935)(1,357)
Contributions from noncontrolling interests in consolidated subsidiariesContributions from noncontrolling interests in consolidated subsidiaries2,657 98,626 
Proceeds received from exercise of Vornado stock options and otherProceeds received from exercise of Vornado stock options and other5,567 2,403 Proceeds received from exercise of Vornado stock options and other664 5,567 
Debt issuance costs(1,357)(15,328)
Repurchase of Class A units related to stock compensation agreements and related tax withholdings and otherRepurchase of Class A units related to stock compensation agreements and related tax withholdings and other(137)(8,692)Repurchase of Class A units related to stock compensation agreements and related tax withholdings and other(114)(137)
Purchase of marketable securities in connection with defeasance of mortgage payable(407,126)
Prepayment penalty on redemption of senior unsecured notes due 2022(22,058)
Redemption of preferred units(893)
Net cash used in financing activities(431,568)(2,097,868)
Net (decrease) increase in cash and cash equivalents and restricted cash(116,793)528,651 
Moynihan Train Hall reimbursement from Empire State DevelopmentMoynihan Train Hall reimbursement from Empire State Development— 277,128 
Net cash provided by (used in) financing activitiesNet cash provided by (used in) financing activities452,359 (431,568)
Net increase (decrease) in cash and cash equivalents and restricted cashNet increase (decrease) in cash and cash equivalents and restricted cash537,828 (116,793)
Cash and cash equivalents and restricted cash at beginning of periodCash and cash equivalents and restricted cash at beginning of period1,607,131 716,905 Cash and cash equivalents and restricted cash at beginning of period1,730,369 1,607,131 
Cash and cash equivalents and restricted cash at end of periodCash and cash equivalents and restricted cash at end of period$1,490,338 $1,245,556 Cash and cash equivalents and restricted cash at end of period$2,268,197 $1,490,338 
Reconciliation of Cash and Cash Equivalents and Restricted Cash:Reconciliation of Cash and Cash Equivalents and Restricted Cash:Reconciliation of Cash and Cash Equivalents and Restricted Cash:
Cash and cash equivalents at beginning of periodCash and cash equivalents at beginning of period$1,515,012 $570,916 Cash and cash equivalents at beginning of period$1,624,482 $1,515,012 
Restricted cash at beginning of periodRestricted cash at beginning of period92,119 145,989 Restricted cash at beginning of period105,887 92,119 
Cash and cash equivalents and restricted cash at beginning of periodCash and cash equivalents and restricted cash at beginning of period$1,607,131 $716,905 Cash and cash equivalents and restricted cash at beginning of period$1,730,369 $1,607,131 
Cash and cash equivalents at end of periodCash and cash equivalents at end of period$1,411,047 $1,132,491 Cash and cash equivalents at end of period$2,128,964 $1,411,047 
Restricted cash at end of periodRestricted cash at end of period79,291 113,065 Restricted cash at end of period139,233 79,291 
Cash and cash equivalents and restricted cash at end of periodCash and cash equivalents and restricted cash at end of period$1,490,338 $1,245,556 Cash and cash equivalents and restricted cash at end of period$2,268,197 $1,490,338 
Supplemental Disclosure of Cash Flow Information:Supplemental Disclosure of Cash Flow Information:Supplemental Disclosure of Cash Flow Information:
Cash payments for interest, excluding capitalized interest of $30,649 and $55,186$164,752 $227,310 
Cash payments for interest, excluding capitalized interest of $31,785 and $30,649Cash payments for interest, excluding capitalized interest of $31,785 and $30,649$137,937 $164,752 
Cash payments for income taxesCash payments for income taxes$14,252 $47,345 Cash payments for income taxes$8,426 $14,252 
Non-Cash Investing and Financing Activities:Non-Cash Investing and Financing Activities:Non-Cash Investing and Financing Activities:
Increase in assets and liabilities resulting from the consolidation of One Park Avenue:Increase in assets and liabilities resulting from the consolidation of One Park Avenue:
Real estateReal estate$566,013 $— 
Identified intangible assetsIdentified intangible assets139,545 — 
Mortgages payableMortgages payable525,000 — 
Deferred revenueDeferred revenue18,884 — 
Reclassification of Series K cumulative redeemable preferred units to liabilities upon call for redemptionReclassification of Series K cumulative redeemable preferred units to liabilities upon call for redemption300,000 — 
Accrued capital expenditures included in accounts payable and accrued expensesAccrued capital expenditures included in accounts payable and accrued expenses120,635 118,672 
Reclassification of assets held for sale (included in "other assets")Reclassification of assets held for sale (included in "other assets")79,421 — 
Redeemable Class A unit measurement adjustmentRedeemable Class A unit measurement adjustment(78,848)272,436 
Write-off of fully depreciated assetsWrite-off of fully depreciated assets(78,353)(111,863)
Reclassification of condominium units from "development costs and construction in progress" to
"220 Central Park South condominium units ready for sale"
Reclassification of condominium units from "development costs and construction in progress" to
"220 Central Park South condominium units ready for sale"
$370,850 $825,520 Reclassification of condominium units from "development costs and construction in progress" to
"220 Central Park South condominium units ready for sale"
11,767 370,850 
Redeemable Class A unit measurement adjustment272,436 123,635 
Accrued capital expenditures included in accounts payable and accrued expenses118,672 117,205 
Write-off of fully depreciated assets(111,863)(113,261)
Investments received in exchange for transfer to Fifth Avenue and Times Square JV:
Preferred equity2,327,750 
Common equity1,449,495 
Lease liabilities arising from the recognition of right-of-use assets526,866 
Marketable securities transferred in connection with the defeasance of mortgage payable(407,126)
Defeasance of mortgage payable390,000 
Amounts related to our investment in Pennsylvania Real Estate Investment Trust reclassified from "investments in partially owned entities" and "accumulated other comprehensive loss" to "marketable securities" upon conversion of operating partnership units to common shares54,962 
See notes to consolidated financial statements (unaudited)


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VORNADO REALTY TRUST AND VORNADO REALTY L.P.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)

1.    Organization
Vornado Realty Trust (“Vornado”) is a fully-integrated real estate investment trust (“REIT”) and conducts its business through, and substantially all of its interests in properties are held by, Vornado Realty L.P., a Delaware limited partnership (the “Operating Partnership”). Vornado is the sole general partner of, and owned approximately92.7% 92.6% of the common limited partnership interest in the Operating Partnership as of September 30, 2020.2021. All references to the “Company,” “we,” “us” and “our” mean, collectively, Vornado, the Operating Partnership and those subsidiaries consolidated by Vornado.
2.    COVID-19 Pandemic
Our business has been adversely affected as a result of the COVID-19 pandemic and the preventive measures taken to curb the spread of the virus. Some of the effects on us include the following:
With the exception of grocery stores and other "essential" businesses, many of our retail tenants closed their stores in March 2020 and began reopening when New York City entered phase two of its state-mandated reopening plan on June 22, 2020.
While our buildings remain open, many of our office tenants are working remotely.
We have closed the Hotel Pennsylvania. In connection with the closure, we accrued $9,246,000 of severance for furloughed Hotel Pennsylvania union employees and recognized a corresponding $3,145,000 income tax benefit for the three and nine months ended September 30, 2020.
We have cancelled trade shows at theMART for the remainder of 2020.
Because certain of our development projects were deemed "non-essential," they were temporarily paused in March 2020 due to New York State executive orders and resumed once New York City entered phase one of its state mandated reopening plan on June 8, 2020.
As of April 30, 2020, we placed1,803 employees on furlough, which included 1,293 employees of Building Maintenance Services LLC ("BMS"), a wholly owned subsidiary, which provides cleaning, security and engineering services primarily to our New York properties, 414 employees at the Hotel Pennsylvania and 96 corporate staff employees. As of October 31, 2020, 40% of the furloughed employees have returned to work.
Effective April 1, 2020, our executive officers waived portions of their annual base salary for the remainder of 2020.
Effective April 1, 2020, each non-management member of our Board of Trustees agreed to forgo their $75,000 annual cash retainer for the remainder of 2020.
While we believe our tenants are required to pay rent under their leases, in limited circumstances, we have agreed to and may continue to agree to rent deferrals and rent abatements for certain of our tenants. We have made a policy election in accordance with the Financial Accounting Standards Board (“FASB”) Staff Q&A which provides relief in accounting for leases during the COVID-19 pandemic, allowing us to continue recognizing rental revenue on a straight-line basis for rent deferrals, with no impact to revenue recognition, and to recognize rent abatements as a reduction to rental revenue in the period granted. See Note 4 - Recently Issued Accounting Literature for additional information.
For the quarter ended September 30, 2020, we collected 93% (95% including rent deferrals) of rent due from our tenants, comprised of 95% (97% including rent deferrals) from our office tenants and 82% (85% including rent deferrals) from our retail tenants. Rent deferrals generally require repayment in monthly installments over a period not to exceed twelve months.
Based on our assessment of the probability of rent collection of our lease receivables, we have written off $13,873,000 and $50,170,000 of receivables arising from the straight-lining of rents for the three and nine months ended September 30, 2020, respectively, including the JCPenney retail lease at Manhattan Mall and the New York & Company, Inc. office lease at 330 West 34th Street. Both tenants have filed for Chapter 11 bankruptcy. In addition, we have written off $12,364,000 and $21,186,000 of tenant receivables deemed uncollectible for the three and nine months ended September 30, 2020, respectively. These write-offs resulted in a reduction of lease revenues and our share of income from partially owned entities. Prospectively, revenue recognition for these tenants will be based on actual amounts received. See Note 5 - Revenue Recognition and Note 8 - Investments in Partially Owned Entities for additional information.
3.    Basis of Presentation
The accompanying consolidated financial statements are unaudited and include the accounts of Vornado and the Operating Partnership and their consolidated subsidiaries. All inter-company amounts have been eliminated and all adjustments (which include only normal recurring adjustments) necessary to present fairly the financial position, results of operations and changes in cash flows have been made. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) have been condensed or omitted. These condensed consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q of the Securities and Exchange Commission (“SEC”) and should be read in conjunction with the consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2019,2020, as filed with the SEC.

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VORNADO REALTY TRUST AND VORNADO REALTY L.P.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED
(UNAUDITED)
3.    Basis of Presentation - continued
We have made estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates. The results of operations for the three and nine months ended September 30, 20202021 are not necessarily indicative of the operating results for the full year. In addition, certain prior year balances have been reclassified in order to conform to the current period presentation.
4.3.    Recently Issued Accounting Literature
In June 2016, the FASB issued an update ("ASU 2016-13") Measurement of Credit Losses on Financial Instruments establishing Accounting Standards Codification ("ASC") Topic 326, Financial Instruments - Credit Losses ("ASC 326"), as amended by subsequent ASUs on the topic. ASU 2016-13 changes how entities account for credit losses for most financial assets and certain other instruments that are not measured at fair value through net income. The guidance replaces the current “incurred loss” model with an “expected loss” model that requires consideration of a broader range of information to estimate expected credit losses over the lifetime of the financial asset. ASU 2016-13 is effective for interim and annual reporting periods in fiscal years beginning after December 15, 2019. In May 2019, the FASB issued ASU 2019-05 Financial Instruments - Credit Losses (Topic 326): Targeted Transition Relief to allow companies to irrevocably elect, upon adoption of ASU 2016-13, the fair value option for financial instruments that were previously recorded at amortized cost and are within the scope of ASC Subtopic 326-20 if the instruments are eligible for the fair value option under ASC Subtopic 825-10, Financial Instruments ("ASC 825-10"). We elected to apply the fair value option on an instrument-by-instrument basis to our loans receivable. We adopted this standard effective January 1, 2020 and recorded a $16,064,000 cumulative-effect adjustment to beginning accumulated deficit to recognize credit losses on loans receivable recorded on our consolidated balance sheets. For the nine months ended September 30, 2020, we recorded $13,369,000 of credit losses on our loans receivable which are included in "interest and other investment income (loss), net" on our consolidated statements of income.
In March 2020, the FASBFinancial Accounting Standards Board ("FASB") issued an update ("ASU 2020-04") establishing ASCAccounting Standards Codification ("ASC") Topic 848, Reference Rate Reform. ASU 2020-04 contains practical expedients for reference rate reform related activities that impact debt, leases, derivatives and other contracts. The guidance in ASU 2020-04 is optional and may be elected over time as reference rate reform activities occur. During the nine months ended September 30, 2020, weWe have elected to apply the hedge accounting expedients related to probability and the assessments of effectiveness for future LIBOR-indexed cash flows to assume that the index upon which future hedged transactions will be based matches the index on the corresponding derivatives. Application of these expedients preserves the presentation of derivatives consistent with past presentation. We continue to evaluate the impact of the guidance and may apply other elections as applicable as additional changes in the market occur.
In April 2020, the FASB issued a Staff Q&A on accounting for leases during the COVID-19 pandemic, focused on the application of lease guidance in ASC Topic 842, Leases ("ASC 842"). The Q&A states that it would be acceptable to make a policy election regarding rent concessions resulting from COVID-19, which would not require entities to account for these rent concessions as lease modifications when total cash flows resulting from the modified contract are “substantially the same or less” than the cash flows in the original contract. During the three and nine months ended September 30, 2020, in limited circumstances, we granted rent deferrals and rent abatements for certain of our tenants. We have made a policy election in accordance with the Staff Q&A for our portfolio allowing us to not account for the concessions as lease modifications. Accordingly, rent abatements are recognized as reductions to “rental revenues” during the period in which they were granted. Rent deferrals result in an increase to "tenant and other receivables" during the deferral period with no impact on rental revenue recognition. For any concessions that do not meet the guidance contained in the Q&A, the modification guidance in accordance with ASC 842 will be applied. See Note 2 - COVID-19 Pandemic for further details.
In August 2020, the FASB issued an update ("ASU 2020-06") Debt - Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging - Contracts in Entity’s Own Equity (Subtopic 815-40). ASU 2020-06 simplifies the accounting for convertible instruments by reducing the number of accounting models for convertible debt instruments and convertible preferred stock, removes certain settlement conditions that are required for equity contracts to qualify for the derivative scope exception and also simplifies the diluted earnings per share calculation in certain areas. ASU 2020-06 is effective for reporting periods beginning after December 15, 2021, with early adoption permitted. We are currently evaluating the impact of the adoption of ASU 2020-06 on our consolidated financial statements, but do not believe the adoption of this standard will have a material impact on our consolidated financial statements.
In July 2021, the FASB issued an update ("ASU 2021-05") Lessors - Certain Leases with Variable Lease Payments to ASC Topic 842, Leases ("ASC 842").ASU 2021-05 provides additional ASC 842 classification guidance as it relates to a lessor's accounting for certain leases with variable lease payments. ASU 2021-05 requires a lessor to classify a lease with variable payments that do not depend on an index or rate as an operating lease if either a sales-type lease or direct financing lease classification would trigger a day-one loss. ASU 2021-05 is effective for reporting periods beginning after December 15, 2021, with early adoption permitted. We are currently evaluating the impact of the adoption of ASU 2021-05 on our consolidated financial statements, but do not believe the adoption of this standard will have a material impact on our consolidated financial statements.
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VORNADO REALTY TRUST AND VORNADO REALTY L.P.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED
(UNAUDITED)
5.4.    Revenue Recognition
Below is a summary of our revenues by segment. Additional financial information related to these reportable segments for the three and nine months ended September 30, 20202021 and 20192020 is set forth in Note 2221 - Segment Information.
(Amounts in thousands)(Amounts in thousands)For the Three Months Ended September 30, 2020For the Three Months Ended September 30, 2019(Amounts in thousands)For the Three Months Ended September 30, 2021For the Three Months Ended September 30, 2020
TotalNew YorkOtherTotalNew YorkOtherTotalNew YorkOtherTotalNew YorkOther
Property rentals(1)
Property rentals(1)
$312,748 $248,328 $64,420 $381,740 $308,933 $72,807 
Property rentals(1)
$345,235 $273,197 $72,038 $312,748 $248,328 $64,420 
Hotel Pennsylvania(2)
24,499 24,499 
Trade shows(3)(2)
Trade shows(3)(2)
8,104 8,104 
Trade shows(3)(2)
12,605 — 12,605 — — — 
Lease revenues(4)(3)
Lease revenues(4)(3)
312,748 248,328 64,420 414,343 333,432 80,911 
Lease revenues(4)(3)
357,840 273,197 84,643 312,748 248,328 64,420 
Tenant servicesTenant services9,505 6,589 2,916 13,295 9,342 3,953 Tenant services11,363 7,565 3,798 9,505 6,589 2,916 
Rental revenuesRental revenues322,253 254,917 67,336 427,638 342,774 84,864 Rental revenues369,203 280,762 88,441 322,253 254,917 67,336 
BMS cleaning feesBMS cleaning fees24,054 25,592 (1,538)(5)30,677 32,787 (2,110)(5)BMS cleaning fees30,827 32,630 (1,803)(4)24,054 25,592 (1,538)(4)
Management and leasing feesManagement and leasing fees11,649 11,732 (83)3,326 3,746 (420)Management and leasing fees2,509 2,680 (171)11,649 11,732 (83)
Other incomeOther income6,006 904 5,102 4,320 1,261 3,059 Other income6,673 571 6,102 6,006 904 5,102 
Fee and other incomeFee and other income41,709 38,228 3,481 38,323 37,794 529 Fee and other income40,009 35,881 4,128 41,709 38,228 3,481 
Total revenuesTotal revenues$363,962 $293,145 $70,817 $465,961 $380,568 $85,393 Total revenues$409,212 $316,643 $92,569 $363,962 $293,145 $70,817 
____________________
See notes below.
(Amounts in thousands)(Amounts in thousands)For the Nine Months Ended September 30, 2020For the Nine Months Ended September 30, 2019(Amounts in thousands)For the Nine Months Ended September 30, 2021For the Nine Months Ended September 30, 2020
TotalNew YorkOtherTotalNew YorkOtherTotalNew YorkOtherTotalNew YorkOther
Property rentals(1)
Property rentals(1)
$992,238 $788,248 $203,990 $1,211,641 $995,661 $215,980 
Property rentals(1)
$1,008,237 $795,841 $212,396 $992,238 $788,248 $203,990 
Hotel Pennsylvania(2)(5)
Hotel Pennsylvania(2)(5)
8,741 8,741 62,633 62,633 
Hotel Pennsylvania(2)(5)
— — — 8,741 8,741 — 
Trade shows(3)(2)
Trade shows(3)(2)
11,303 11,303 36,607 36,607 
Trade shows(3)(2)
12,605 — 12,605 11,303 — 11,303 
Lease revenues(4)(3)
Lease revenues(4)(3)
1,012,282 796,989 215,293 1,310,881 1,058,294 252,587 
Lease revenues(4)(3)
1,020,842 795,841 225,001 1,012,282 796,989 215,293 
Tenant servicesTenant services26,439 18,310 8,129 37,933 27,904 10,029 Tenant services27,274 18,502 8,772 26,439 18,310 8,129 
Rental revenuesRental revenues1,038,721 815,299 223,422 1,348,814 1,086,198 262,616 Rental revenues1,048,116 814,343 233,773 1,038,721 815,299 223,422 
BMS cleaning feesBMS cleaning fees77,635 82,426 (4,791)(5)93,032 99,488 (6,456)(5)BMS cleaning fees87,387 92,178 (4,791)(4)77,635 82,426 (4,791)(4)
Management and leasing feesManagement and leasing fees16,353 16,307 46 10,063 10,469 (406)Management and leasing fees10,951 11,290 (339)16,353 16,307 46 
Other incomeOther income18,811 5,356 13,455 11,823 4,079 7,744 Other income21,676 3,947 17,729 18,811 5,356 13,455 
Fee and other incomeFee and other income112,799 104,089 8,710 114,918 114,036 882 Fee and other income120,014 107,415 12,599 112,799 104,089 8,710 
Total revenuesTotal revenues$1,151,520 $919,388 $232,132 $1,463,732 $1,200,234 $263,498 Total revenues$1,168,130 $921,758 $246,372 $1,151,520 $919,388 $232,132 
____________________
(1)Reduced by $22,135 and $1,106$60,766 for the three months ended September 30, 2020 and 2019, respectively, and $60,766 and $16,488 for the nine months ended September 30, 2020, and 2019, respectively, for the write-off of lease receivables deemed uncollectible (primarily write-offs of receivables arising from the straight-lining of rents).
(2)Closed since April 1, 2020 as a result of the pandemic.
(3)CancelledWe cancelled trade shows at theMART frombeginning late March of 2020 throughdue to the remainderCOVID-19 pandemic and resumed in the third quarter of the year as a result of the pandemic.2021.
(4)(3)The components of lease revenues were as follows:
For the Three Months Ended September 30,For the Nine Months Ended September 30,
2020201920202019
Fixed lease revenues$306,319 $351,426 $955,650 $1,159,037 
Variable lease revenues6,429 62,917 56,632 151,844 
Lease revenues$312,748 $414,343 $1,012,282 $1,310,881 
For the Three Months Ended September 30,For the Nine Months Ended September 30,
2021202020212020
Fixed billings$329,499 $307,013 $945,322 $983,669 
Variable billings29,008 29,574 90,780 100,057 
Total contractual operating lease billings358,507 336,587 1,036,102 1,083,726 
Adjustment for straight-line rents and amortization of acquired below-market leases and other, net1,313 (1,704)(8,041)(10,678)
Less: write-off of straight-line rent and tenant receivables deemed uncollectible(1,980)(22,135)(7,219)(60,766)
Lease revenues$357,840 $312,748 $1,020,842 $1,012,282 

(5)(4)Represents the elimination of theMART and 555 California Street BMSBuilding Maintenance Services LLC ("BMS") cleaning fees which are included as income in the New York segment.
(5)On April 5, 2021, we permanently closed the Hotel Pennsylvania.

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VORNADO REALTY TRUST AND VORNADO REALTY L.P.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED
(UNAUDITED)
6.5.    Real Estate Fund Investments
We are the general partner and investment manager of Vornado Capital Partners Real Estate Fund (the “Fund”) and own a 25.0% interest in the Fund, which had an initial eight-year term ending February 2019. On January 29, 2018, the Fund's term was extended to February 2023. The Fund's three-year investment period ended in July 2013. The Fund is accounted for under ASC Topic 946, Financial Services – Investment Companies (“ASC 946”) and its investments are reported on its balance sheet at fair value, with changes in value each period recognized in earnings. We consolidate the accounts of the Fund into our consolidated financial statements, retaining the fair value basis of accounting.
We are the general partner and investment manager of the Crowne Plaza Times Square Hotel Joint Venture (the “Crowne Plaza Joint Venture”) and own a 57.1% interest in the joint venture which owns the 24.7% interest in the Crowne Plaza Times Square Hotel not owned by the Fund. The Crowne Plaza Joint Venture is also accounted for under ASC 946 and we consolidate the accounts of the joint venture into our consolidated financial statements, retaining the fair value basis of accounting. On June 9, 2020, the joint venture between the Fund and the Crowne Plaza Joint Venture defaulted on the $274,355,000 non-recourse loan on the Crowne Plaza Times Square Hotel. The interest-only loan, which bears interest at a floating rate of LIBOR plus 3.69% (3.90%(3.77% as of September 30, 2020)2021) and provides for additional default interest of 3.00%, was scheduled to mature on July 9, 2020. We are in negotiations with
On April 12, 2021, the lendersFund defaulted on the $82,750,000 non-recourse loan on 1100 Lincoln Road. The interest-only loan currently bears interest at a floating rate of prime plus 1.40% (4.65% as of September 30, 2021) and there can be no assurance asprovides for additional default interest of 3.00%. The loan was scheduled to the timing and ultimate resolution of these negotiations.mature on July 27, 2021.
As of September 30, 2020,2021, we had 4 real estate fund investments through the Fund and the Crowne Plaza Joint Venture with an aggregate fair value of $3,739,000, $338,327,000$339,812,000 below cost, and had remaining unfunded commitments of $28,692,000,$29,194,000, of which our share was $9,140,000.$9,266,000. As of December 31, 2019,2020, those 4 real estate fund investments had an aggregate fair value of $222,649,000.$3,739,000.
Below is a summary of income (loss) income from the Fund and the Crowne Plaza Joint Venture.
(Amounts in thousands)(Amounts in thousands)For the Three Months Ended September 30,For the Nine Months Ended
September 30,
(Amounts in thousands)For the Three Months Ended September 30,For the Nine Months Ended September 30,
20202019202020192021202020212020
Net investment (loss) incomeNet investment (loss) income$(66)$393 $5,896 $84 
Net unrealized loss on held investmentsNet unrealized loss on held investments$(14,216)$$(225,412)$(16,162)Net unrealized loss on held investments— (14,216)(789)(225,412)
Net investment income393 2,190 84 2,382 
(Loss) income from real estate fund investments(Loss) income from real estate fund investments(13,823)2,190 (225,328)(13,780)(Loss) income from real estate fund investments(66)(13,823)5,107 (225,328)
Less loss (income) attributable to noncontrolling interests in consolidated
subsidiaries
Less loss (income) attributable to noncontrolling interests in consolidated
subsidiaries
11,299 (735)160,557 (8,427)Less loss (income) attributable to noncontrolling interests in consolidated subsidiaries360 11,299 (2,914)160,557 
(Loss) income from real estate fund investments net of noncontrolling interests
in consolidated subsidiaries
$(2,524)$1,455 $(64,771)$(22,207)
Income (loss) from real estate fund investments net of noncontrolling interests in consolidated subsidiariesIncome (loss) from real estate fund investments net of noncontrolling interests in consolidated subsidiaries$294 $(2,524)$2,193 $(64,771)
7.    Marketable Securities
Pennsylvania Real Estate Investment Trust (“PREIT”) (NYSE: PEI)
On January 23, 2020, we sold all of our 6,250,000 common shares of PREIT, realizing net proceeds of $28,375,000. We recorded a $4,938,000 loss (mark-to-market decrease) for the nine months ended September 30, 2020.
The table below summarizes the changes of our investment in PREIT.
(Amounts in thousands)For the Nine Months Ended September 30, 2020
Balance as of December 31, 2019$33,313 
Sale of marketable securities on January 23, 2020(28,375)
Decrease in fair value of marketable securities(1)
(4,938)
Balance as of September 30, 2020$
____________________
(1)Included in “interest and other investment income (loss), net” on our consolidated statements of income (see Note 18 - Interest and Other Investment Income (Loss), Net).
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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED
(UNAUDITED)
8.6.    Investments in Partially Owned Entities
Fifth Avenue and Times Square JV
As of September 30, 2020,2021, we own a 51.5% common interest in a joint venture ("Fifth Avenue and Times Square JV") which owns interests in properties located at 640 Fifth Avenue, 655 Fifth Avenue, 666 Fifth Avenue, 689 Fifth Avenue, 697-703 Fifth Avenue, 1535 Broadway and 1540 Broadway (collectively, the "Properties"). The remaining 48.5% common interest in the joint venture is owned by a group of institutional investors (the "Investors"). Our 51.5% common interest in the joint venture represents an effective 51.0% interest in the Properties. The 48.5% common interest in the joint venture owned by the Investors represents an effective 47.2% interest in the Properties. We provide various services to Fifth Avenue and Times Square JV in accordance with management, development, leasing and other agreements.
We also own $1.828 billion of preferred equity security interests in certain of the properties. All of theThe preferred equity has an annual coupon of 4.25% for the first five years,through April 2024, increasing to 4.75% for the nextsubsequent five years and thereafter at a formulaic rate. It can be redeemed under certain conditions on a tax deferred basis.
As of September 30, 2021, the carrying amount of our investment in the joint venture was less than our share of the equity in the net assets of the joint venture by approximately $390,806,000, the basis difference primarily resulting from non-cash impairment losses recognized during 2020. Substantially all of this basis difference was allocated, based on our estimates of the fair values of Fifth Avenue and Times Square JV was formed in April 2019, when we contributed our interests inJV’s assets and liabilities, to real estate (land and buildings). We are amortizing the Properties to the joint venture and transferred a 48.5% common interest in the joint venture to the Investors (the “Transaction”). The Transaction valued the Properties at $5.556 billion, resulting in a $2.571 billion net gain, before noncontrolling interests of $11,945,000, including a gainbasis difference related to the step up in our basis of the retained portion of the assetsbuildings into earnings as a reduction to fair value. Subsequent to the Transaction, Manhattan street retail suffered negative market conditions and was further stressed by the COVID-19 pandemic. This has resulted in a decrease in cash flows. On June 30, 2020, wedepreciation expense over their estimated that the fair value of our investment in Fifth Avenue and Times Square JV was approximately $2,955,957,000, or $306,326,000 less than the carrying amount, and concluded that the decline in the value of our investment was "other-than-temporary," resulting in the recognition of a non-cash impairment loss of $306,326,000, before noncontrolling interests of $467,000, for the three months ended June 30, 2020. On September 30, 2020, we estimated that the fair value of our investment in Fifth Avenue and Times Square JV was approximately $2,811,374,000, or $107,023,000 less than the carrying amount as of September 30, 2020 (after recognition of the June 30, 2020 impairment loss), and further concluded that the decline in the value of our investment was "other-than-temporary." Our conclusions were based on, among other factors, the significant challenges facing the retail sector and our inability to forecast a recovery over our anticipated holding period. Accordingly, we recognized a non-cash impairment loss of $107,023,000, before noncontrolling interests of $3,822,000, for the three months ended September 30, 2020 and $413,349,000, before noncontrolling interests of $4,289,000, for the nine months ended September 30, 2020. In determining the fair value of our investment, we considered, among other inputs, a discounted cash flow analysis based upon market conditions and expectations of growth. The impairment losses are included in “(loss) income from partially owned entities” on our consolidated statements of income for the three and nine months ended September 30, 2020.useful lives.
We provide various services to Fifth Avenue and Times Square JV in accordance with management, development, leasing and other agreements. We recognized property management fee income, included in "fee and other income" on our consolidated statements of income, of $1,219,000 and $1,104,000 for the three months ended September 30, 2020 and 2019, respectively, and $2,880,000 and $1,934,000 for the nine months ended September 30, 2020 and 2019, respectively.
BMS, our wholly-owned subsidiary, supervises cleaning, security and engineering services at certain of the Properties. We recognized income for these services, included in "fee and other income" on our consolidated statements of income, of $792,000 and $1,161,000 for the three months ended September 30, 2020 and 2019, respectively, and $2,565,000 and $1,952,000 for the nine months ended September 30, 2020 and 2019, respectively.
Below is a summary of financial information for Fifth Avenue and Times Square JV.
(Amounts in thousands)For the Three Months Ended September 30,For the Nine Months Ended September 30,
2020201920202019
Income statement:
Revenues$80,627 $85,294 $227,413 $158,182 
Net income6,750 18,669 16,839 40,135 
Net (loss) income attributable to Fifth Avenue and Times Square JV (after allocation to our preferred equity interests)(13,008)(1,559)(41,412)2,520 

2826


VORNADO REALTY TRUST AND VORNADO REALTY L.P.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED
(UNAUDITED)
8.6.    Investments in Partially Owned Entities - continued
Alexander’s, Inc. (“Alexander’s”) (NYSE: ALX)
As of September 30, 2020,2021, we own 1,654,068 Alexander’s common shares, or approximately 32.4% of Alexander’s common equity. We manage, develop and lease Alexander’s properties pursuant to agreements which expire in March of each year and are automatically renewable.
On June 4, 2021, Alexander's completed the sale of a parcel of land in the Bronx, New York for $10,000,000. As a result of the sale, we recognized our $2,956,000 share of the net gain and also received a $300,000 sales commission paid by Alexander's.
On October 4, 2021, Alexander's sold its Paramus, New Jersey property to IKEA Property, Inc. ("IKEA"), the tenant at the property, for $75,000,000 pursuant to IKEA's purchase option contained in the lease. The property was encumbered by a $68,000,000 mortgage loan which was repaid at closing of the sale. As a result of the sale, we will recognize in the fourth quarter of 2021 our approximate $11,600,000 share of the net gain and a $750,000 sales commission paid by Alexander's to Vornado.
Alexander's announced that it does not expect to pay a special dividend related to these transactions.
As of September 30, 2020,2021, the market value ("fair value" pursuant to ASC Topic 820, Fair Value Measurements ("ASC 820")) of our investment in Alexander’s, based on Alexander’s September 30, 20202021 closing share price of $245.22,$260.62, was $405,611,000,431,083,000, or $321,077,000$350,606,000 in excess of the carrying amount on our consolidated balance sheet.sheets. As of September 30, 2020,2021, the carrying amount of our investment in Alexander’s, excluding amounts owed to us, exceeded our share of the equity in the net assets of Alexander’s by approximately $38,511,000.$38,287,000. The majority of this basis difference resulted from the excess of our purchase price for the Alexander’s common stock acquired over the book value of Alexander’s net assets. Substantially all of this basis difference was allocated, based on our estimates of the fair values of Alexander’s assets and liabilities, to real estate (land and buildings). We are amortizing the basis difference related to the buildings into earnings as additional depreciation expense over their estimated useful lives. This depreciation is not material to our share of equity in Alexander’s net income. The basis difference related to the land will be recognized upon disposition of our investment.
On September 14, 2020, Alexander's amended and extended the $350,000,000 mortgage loan on the retail condominium of 731 Lexington Avenue. Under the terms of the agreement, Alexander's paid down the loan by $50,000,000 to $300,000,000, extended the maturity date to August 2025 and guaranteed the interest payments and certain leasing costs. The principal of the loan is non-recourse to Alexander's. The interest-only loan remains at the same rate, LIBOR plus 1.40% (1.56% as of September 30, 2020).
On October 23, 2020, Alexander's completed a $94,000,000 financing of The Alexander, a 312-unit residential building that is part of Alexander's residential and retail complex located in Rego Park, Queens, New York. The interest-only loan has a fixed rate of 2.63% and matures in November 2027.
Below is a schedule summarizing our investments in partially owned entities.
(Amounts in thousands)(Amounts in thousands)Percentage Ownership at September 30, 2020Balance as of(Amounts in thousands)Percentage Ownership at September 30, 2021Balance as of
September 30, 2020December 31, 2019September 30, 2021December 31, 2020
Investments:Investments:Investments:
Fifth Avenue and Times Square JV51.5%$2,811,374 $3,291,231 
Fifth Avenue and Times Square JV (see page 26 for details):Fifth Avenue and Times Square JV (see page 26 for details):51.5%$2,771,904 $2,798,413 
Partially owned office buildings/land(1)
Partially owned office buildings/land(1)
Various467,498 464,109 
Partially owned office buildings/land(1)
Various305,059 473,285 
Alexander’sAlexander’s32.4%84,534 98,543 Alexander’s32.4%80,477 82,902 
Other investments(2)
Other investments(2)
Various140,922 145,282 
Other investments(2)
Various130,430 136,507 
$3,504,328 $3,999,165 $3,287,870 $3,491,107 
Investments in partially owned entities included in other liabilities(3):
Investments in partially owned entities included in other liabilities(3):
Investments in partially owned entities included in other liabilities(3):
7 West 34th Street7 West 34th Street53.0%$(54,096)$(54,004)7 West 34th Street53.0%$(58,927)$(55,340)
85 Tenth Avenue85 Tenth Avenue49.9%(11,142)(6,186)85 Tenth Avenue49.9%(16,906)(13,080)
$(65,238)$(60,190)$(75,833)$(68,420)
____________________
(1)Includes interests in 280 Park Avenue, 650 Madison Avenue, One Park Avenue (consolidated from August 5, 2021, see Note8 - Acquisitions and Dispositions for details), 512 West 22nd Street, 61 Ninth Avenue and others.
(2)Includes interests in Independence Plaza, Rosslyn Plaza and others.
(3)Our negative basis results from distributions in excess of our investment.

29
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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED
(UNAUDITED)
8.6.    Investments in Partially Owned Entities - continued
Below is a schedule of income (loss) income from partially owned entities.
(Amounts in thousands)Percentage Ownership at September 30, 2020For the Three Months Ended September 30,For the Nine Months Ended September 30,
2020201920202019
 Our share of net (loss) income:
Fifth Avenue and Times Square JV (see page 28 for details)(1):
Non-cash impairment loss$(107,023)$$(413,349)$
Return on preferred equity, net of our share of the expense9,430 9,545 27,926 18,131 
Equity in net income51.5%7,694 9,891 13,631 (2)21,108 
(89,899)19,436 (371,792)39,239 
Alexander's (see page 29 for details):
Equity in net income(3)
32.4%2,075 5,393 7,420 14,707 
Management, leasing and development fees1,296 1,299 3,778 3,478 
3,371 6,692 11,198 18,185 
Partially owned office buildings(4)
Various6,418 (186)8,550 (1,531)
Other investments(5)
Various(799)(1,635)246 
$(80,909)$25,946 $(353,679)$56,139 
(Amounts in thousands)Percentage Ownership at September 30, 2021For the Three Months Ended September 30,For the Nine Months Ended September 30,
2021202020212020
 Our share of net income (loss):
Fifth Avenue and Times Square JV (see page 26 for details):
Equity in net income(1)
51.5%$12,671 $7,694 $32,314 $13,631 
Return on preferred equity, net of our share of the expense9,430 9,430 27,985 27,926 
Non-cash impairment loss— (107,023)— (413,349)
22,101 (89,899)60,299 (371,792)
Alexander's (see page 27 for details):
Equity in net income(2)
32.4%3,710 2,075 14,808 7,420 
Net gain on sale of land— — 2,956 — 
Management, leasing and development fees1,085 1,296 3,622 3,778 
4,795 3,371 21,386 11,198 
Partially owned office buildings(3)
Various1,291 6,418 11,021 8,550 
Other investments(4)
Various(1,918)(799)(5,938)(1,635)
$26,269 $(80,909)$86,768 $(353,679)
____________________
(1)Entered into on April 18, 2019.
(2)Includes a $10,047 reductionThe three and nine months ended September 30, 2021 include decreases in income relatedour share of depreciation and amortization expense compared to a Forever 21 lease modification at 1540 Broadwaythe the prior year periods of $3,177 and $14,282, respectively, primarily resulting from non-cash impairment losses recognized during 2020 (see page 26 for details). The nine months ended September 30, 2020 includes $2,997 of write-offs of lease receivables deemed uncollectible during 2020.uncollectible.
(3)(2)The three and nine months ended September 30, 2020 include our $3,139 and $4,846 respectively, of our share of write-offs of lease receivables deemed uncollectible.uncollectible, respectively.
(4)(3)Includes interests in 280 Park Avenue, 650 Madison Avenue, One Park Avenue (consolidated from August 5, 2021, see Note8 - Acquisitions and Dispositions for details), 7 West 34th Street, 330 Madison Avenue (sold on July 11, 2019), 512 West 22nd Street, 61 Ninth Avenue, 85 Tenth Avenue and others.
(5)(4)Includes interests in Independence Plaza, Rosslyn Plaza Urban Edge Properties (sold on March 4, 2019), PREIT (accounted for as a marketable security from March 12, 2019 and sold on January 23, 2020) and others.
9.7.    220 Central Park South ("220 CPS")
We are completing construction of a residential condominium tower containing 397,000 salable square feet at 220 CPS. The development cost of this project (exclusive of land cost) is estimated to be approximately $1.450 billion, of which $1.436 billion has been expended as of September 30, 2020.
During the three months ended September 30, 2020,2021, we closed on the sale of 191 condominium unit at 220 CPS for net proceeds of $25,467,000 resulting in a net gain of $10,087,000 which is included in "net gains on disposition of wholly owned and partially owned assets" on our consolidated statements of income. In connection with this sale, $1,272,000 of income tax expense was recognized on our consolidated statements of income. During the nine months ended September 30, 2021, we closed on the sale of 4 condominium units at 220 CPS for net proceeds of $591,104,000$97,683,000 resulting in a financial statement net gain of $214,578,000$35,359,000 which is included in "net gains on disposition of wholly owned and partially owned assets" on our consolidated statements of income. In connection with these sales, $27,669,000$4,336,000 of income tax expense was recognized on our consolidated statements of income. DuringIn addition, during the three and nine months ended September 30, 2020, we closed on the sale of 30 condominium units at 220 CPS for net proceeds of $939,292,000 resulting in2021, our taxable REIT subsidiaries recognized a financial statement net gain of $338,862,000. In connection with these sales, $43,037,000 of$27,910,000 income tax expense was recognizedbenefit on our consolidated statements of income. From inception to September 30, 2020,2021, we have closed on the sale of 95104 units for net proceeds of $2,759,424,000$2,967,175,000 resulting in financial statement net gains of $1,024,479,000.$1,102,296,000.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED
(UNAUDITED)
8.    Acquisitions and Dispositions
One Park Avenue
On August 5, 2021, pursuant to a right of first offer, we increased our ownership interest in One Park Avenue, a 943,000 square foot Manhattan office building, to 100.0% by acquiring our joint venture partner's 45.0% ownership interest in the property. The purchase price values the property at $875,000,000. We paid approximately $158,000,000 in cash and assumed our joint venture partner's share of the $525,000,000 mortgage loan (discussed below).We previously accounted for our investment under the equity method and have consolidated the accounts of the property from the date of acquisition of the additional 45% ownership interest. The aggregate purchase price and our existing basis in the property have been allocated between the assets acquired and the liabilities assumed (excluding working capital accounts) as follows:
(Amounts in thousands)
Assets:
Land$197,057 
Building and improvements368,956 
Identified intangible assets139,545 
Assets consolidated705,558 
Liabilities:
Mortgages payable525,000 
Deferred revenue18,884 
Liabilities consolidated543,884 
Net assets consolidated (excluding working capital)$161,674 
On February 26, 2021, the joint venture completed a $525,000,000 refinancing of One Park Avenue. The interest-only loan bears a rate of LIBOR plus 1.11% (1.19% as of September 30, 2021) and matures in March 2023, with 3 one-year extension options. We realized our $105,000,000 share of net proceeds. The loan replaced the previous $300,000,000 loan that bore interest at LIBOR plus 1.75% and was scheduled to mature in March 2021.
SoHo Properties
On May 10, 2021, we entered into an agreement to sell 2 Manhattan retail properties located at 478-482 Broadway and 155 Spring Street for $84,500,000. We expect to close the sale in the first quarter of 2022 and recognize a net gain of approximately $1,500,000. As of September 30, 2021, $79,421,000 of assets associated with these properties were classified as held-for-sale and are included in "other assets" on our consolidated balance sheets.
Madison Avenue
On September 24, 2021, we sold 3 Manhattan retail properties located at 677-679, 759-771 and 828-850 Madison Avenue in two separate sale transactions for an aggregate sales price of $100,000,000. Net proceeds from the sales were $96,503,000. In connection with the sales, we recorded $7,880,000 of non-cash impairment losses which are included in "(impairment losses, transaction related costs and other) lease liability extinguishment gain" on our consolidated statements of income for the three and nine months ended September 30, 2021.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED
(UNAUDITED)
9.    Identified Intangible Assets and Liabilities
The following summarizes our identified intangible assets (primarily above-market leases) and liabilities (primarily below-market leases).
(Amounts in thousands)Balance as of
September 30, 2021December 31, 2020
Identified intangible assets:
Gross amount$252,081 $116,969 
Accumulated amortization(93,643)(93,113)
Total, net$158,438 $23,856 
Identified intangible liabilities (included in deferred revenue):
Gross amount$256,065 $273,902 
Accumulated amortization(210,346)(238,541)
Total, net$45,719 $35,361 
Amortization of acquired below-market leases, net of acquired above-market leases, resulted in an increase to rental revenues of $2,222,000 and $3,648,000 for the three months ended September 30, 2021 and 2020, respectively, and $7,939,000 and $13,054,000 for the nine months ended September 30, 2021 and 2020, respectively. Estimated annual amortization of acquired below-market leases, net of acquired above-market leases, for each of the five succeeding years commencing January 1, 2022 is as follows:
(Amounts in thousands)
2022$7,821 
20235,306 
20241,498 
2025285 
2026(357)
Amortization of all other identified intangible assets (a component of depreciation and amortization expense) was $2,066,000 and $1,838,000 for the three months ended September 30, 2021 and 2020, respectively, and $4,377,000 and $4,919,000 for the nine months ended September 30, 2021 and 2020, respectively. Estimated annual amortization of all other identified intangible assets including acquired in-place leases for each of the five succeeding years commencing January 1, 2022 is as follows:
(Amounts in thousands)
2022$9,805 
20238,743 
20247,906 
20256,330 
20266,136 
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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED
(UNAUDITED)
10.    Identified Intangible AssetsDebt
Secured Debt
On March 7, 2021, we entered into an interest rate swap agreement for our $500,000,000 PENN 11 mortgage loan to swap the interest rate on the mortgage loan from LIBOR plus 2.75% (2.83% as of September 30, 2021) to a fixed rate of 3.03% through March 2024.
On March 26, 2021, we completed a $350,000,000 refinancing of 909 Third Avenue, a 1.4 million square foot Manhattan office building. The interest-only loan bears a fixed rate of 3.23% and Liabilitiesmatures in April 2031. The loan replaced the previous $350,000,000 loan that bore interest at a fixed rate of 3.91% and was scheduled to mature in May 2021.
On May 10, 2021, we completed a $1.2 billion refinancing of 555 California Street, a 3 building 1.8 million square foot office campus in San Francisco, in which we own a 70.0% controlling interest. The interest-only loan bears a rate of LIBOR plus 1.93% in years one through five (2.02% as of September 30, 2021), LIBOR plus 2.18% in year six and LIBOR plus 2.43% in year seven. The loan matures in May 2023, with 5 one-year extension options (May 2028 as fully extended). We swapped the interest rate on our $840,000,000 share of the loan to a fixed rate of 2.26% through May 2024. The loan replaced the previous $533,000,000 loan that bore interest at a fixed rate of 5.10% and was scheduled to mature in September 2021.
On May 28, 2021, we repaid the $675,000,000 mortgage loan on theMART, a 3.7 million square foot commercial building in Chicago, with proceeds from our senior unsecured notes offering discussed below. The loan bore interest at 2.70% and was scheduled to mature in September 2021.
Unsecured Revolving Credit Facility
On April 15, 2021, we extended our $1.25 billion unsecured revolving credit facilityfrom January 2023 (as fully extended) to April 2026 (as fully extended). The interest rate on the extended facility was lowered to LIBOR plus 0.90% from LIBOR plus 1.00%. We subsequently qualified for a sustainability margin adjustment by achieving certain KPI metrics, which reduced our interest rate by 0.01% to LIBOR plus 0.89%. The facility fee remains at 20 basis points. Our separate $1.50 billion unsecured revolving credit facility matures in March 2024 (as fully extended) and has an interest rate of LIBOR plus 0.90% and a facility fee of 20 basis points.
Senior Unsecured Notes
On May 24, 2021, we completed a green bond public offering of $400,000,000 2.15% senior unsecured notes due June 1, 2026 ("2026 Notes") and $350,000,000 3.40% senior unsecured notes due June 1, 2031 ("2031 Notes"). Interest on the senior unsecured notes will be payable semi-annually on June 1 and December 1, commencing December 1, 2021. The 2026 Notes were sold at 99.86% of their face amount to yield 2.18% and the 2031 Notes were sold at 99.59% of their face amount to yield 3.45%.
The following summarizesis a summary of our identified intangible assets (primarily above-market leases) and liabilities (primarily below-market leases).debt:
(Amounts in thousands)Balance as of
September 30, 2020December 31, 2019
Identified intangible assets:
Gross amount$121,313 $129,552 
Accumulated amortization(95,567)(98,587)
Total, net$25,746 $30,965 
Identified intangible liabilities (included in deferred revenue):
Gross amount$292,730 $316,119 
Accumulated amortization(252,554)(262,580)
Total, net$40,176 $53,539 
Amortization of acquired below-market leases, net of acquired above-market leases, resulted in an increase to rental revenues of $3,648,000 and $4,393,000 for the three months ended September 30, 2020 and 2019, respectively, and $13,054,000 and $15,561,000 for the nine months ended September 30, 2020 and 2019, respectively. Estimated annual amortization of acquired below-market leases, net of acquired above-market leases, for each of the five succeeding years commencing January 1, 2021 is as follows:
(Amounts in thousands)
2021$10,909 
20229,366 
20236,837 
20243,092 
20251,539 
Amortization of all other identified intangible assets (a component of depreciation and amortization expense) was $1,838,000 and $1,597,000 for the three months ended September 30, 2020 and 2019, respectively, and $4,919,000 and $7,077,000 for the nine months ended September 30, 2020 and 2019, respectively. Estimated annual amortization of all other identified intangible assets including acquired in-place leases for each of the five succeeding years commencing January 1, 2021 is as follows:
(Amounts in thousands)
2021$4,327 
20223,789 
20233,703 
20243,089 
20252,173 
(Amounts in thousands)Weighted Average Interest Rate at September 30, 2021Balance as of
September 30, 2021December 31, 2020
Mortgages Payable:
Fixed rate3.09%$3,140,000 $3,012,643 
Variable rate1.68%2,964,615 2,595,815 
Total2.40%6,104,615 5,608,458 
Deferred financing costs, net and other(35,103)(27,909)
Total, net$6,069,512 $5,580,549 
Unsecured Debt:
Senior unsecured notes3.02%$1,200,000 $450,000 
Deferred financing costs, net and other(10,320)(3,315)
Senior unsecured notes, net1,189,680 446,685 
Unsecured term loan3.70%800,000 800,000 
Deferred financing costs, net and other(2,451)(3,238)
Unsecured term loan, net797,549 796,762 
Unsecured revolving credit facilities0.99%575,000 575,000 
Total, net$2,562,229 $1,818,447 
31


VORNADO REALTY TRUST AND VORNADO REALTY L.P.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED
(UNAUDITED)
11.    Debt
On February 28, 2020, we increased our unsecured term loan balance to $800,000,000 (from $750,000,000) by exercising an accordion feature. Pursuant to an existing swap agreement, $750,000,000 of the loan bears interest at a fixed rate of 3.87% through October 2023, and the balance of $50,000,000 floats at a rate of LIBOR plus 1.00% (1.15% as of September 30, 2020). The entire $800,000,000 will float thereafter for the duration of the loan through February 2024.
On August 12, 2020, we amended the $700,000,000 mortgage loan on 770 Broadway, a 1.2 million square foot Manhattan office building, to extend the term one year through March 2022.
On October 15, 2020, we completed a $500,000,000 refinancing of PENN11, a 1.2 million square foot Manhattan office building. The interest-only loan carries a rate of LIBOR plus 2.75% (currently 2.90%) and matures in October 2023, with 2 one-year extension options. The loan replaces the previous $450,000,000 loan that bore interest at a fixed rate of 3.95% and was scheduled to mature in December 2020.
On November 2, 2020, we repaid the $52,476,000 mortgage loan on our land under a portion of the Borgata Hotel and Casino complex. The 10-year fixed rate amortizing loan bore interest at 5.14% and was scheduled to mature in February 2021.
The following is a summary of our debt:
(Amounts in thousands)Weighted Average Interest Rate at September 30, 2020Balance as of
September 30, 2020December 31, 2019
Mortgages Payable:
Fixed rate3.69%$3,886,714 $4,601,516 
Variable rate1.81%1,774,418 1,068,500 
Total3.10%5,661,132 5,670,016 
Deferred financing costs, net and other(21,981)(30,119)
Total, net$5,639,151 $5,639,897 
Unsecured Debt:
Senior unsecured notes3.50%$450,000 $450,000 
Deferred financing costs, net and other(3,518)(4,128)
Senior unsecured notes, net446,482 445,872 
Unsecured term loan3.70%800,000 750,000 
Deferred financing costs, net and other(3,501)(4,160)
Unsecured term loan, net796,499 745,840 
Unsecured revolving credit facilities1.05%575,000 575,000 
Total, net$1,817,981 $1,766,712 
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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED
(UNAUDITED)
12.    Redeemable Noncontrolling Interests
Redeemable Noncontrolling Partnership Units
Redeemable noncontrolling partnership units are primarily comprised of Class A Operating Partnership units held by third parties and are recorded at the greater of their carrying amount or redemption value at the end of each reporting period. Changes in the value from period to period are charged to “additional capital” in Vornado’s consolidated statements of changes in equity and to “partners’ capital” on the consolidated balance sheets of the Operating Partnership.
Below is a table summarizing the activity of redeemable noncontrolling partnership units.
(Amounts in thousands)(Amounts in thousands)For the Three Months Ended September 30,For the Nine Months Ended September 30,(Amounts in thousands)For the Three Months Ended September 30,For the Nine Months Ended September 30,
20202019202020192021202020212020
Beginning balanceBeginning balance$624,804 $862,062 $888,915 $783,562 Beginning balance$654,771 $624,804 $511,747 $888,915 
Net income (loss)Net income (loss)3,884 22,637 (10,090)197,354 Net income (loss)2,818 3,884 6,683 (10,090)
Other comprehensive loss(520)(650)(3,498)(3,732)
Other comprehensive income (loss)Other comprehensive income (loss)426 (520)2,016 (3,498)
DistributionsDistributions(7,332)(8,852)(25,330)(25,788)Distributions(7,553)(7,332)(22,422)(25,330)
Redemption of Class A units for Vornado common shares, at redemption valueRedemption of Class A units for Vornado common shares, at redemption value(3,586)(1,999)(6,050)(8,128)Redemption of Class A units for Vornado common shares, at redemption value(4,749)(3,586)(13,058)(6,050)
Redeemable Class A unit measurement adjustmentRedeemable Class A unit measurement adjustment(23,557)(24,228)(272,436)(123,635)Redeemable Class A unit measurement adjustment(64,100)(23,557)78,848 (272,436)
Other, netOther, net5,776 5,363 27,958 34,700 Other, net13,036 5,776 30,835 27,958 
Ending balanceEnding balance$599,469 $854,333 $599,469 $854,333 Ending balance$594,649 $599,469 $594,649 $599,469 
As of September 30, 20202021 and December 31, 2019,2020, the aggregate redemption value of redeemable Class A units of the Operating Partnership, which are those units held by third parties, was $460,831,000$591,114,000 and $884,380,000,$507,212,000, respectively, based on Vornado's quarter-end closing common share price.
Redeemable noncontrolling partnership units exclude our Series G-1 through G-4 convertible preferred units and Series D-13 cumulative redeemable preferred units, as they are accounted for as liabilities in accordance with ASC Topic 480, Distinguishing Liabilities and Equity, because of their possible settlement by issuing a variable number of Vornado common shares. Accordingly, the fair value of these units is included as a component of “other liabilities” on our consolidated balance sheets and aggregated $49,947,000$50,149,000 and $50,561,000$50,002,000 as of September 30, 20202021 and December 31, 2019,2020, respectively. Changes in the value from period to period, if any, are charged to “interest and debt expense” on our consolidated statements of income.
Redeemable Noncontrolling Interest in a Consolidated Subsidiary
TheA consolidated joint venture in which we own a 95% interest (the remaining 5% is owned by the Related Companies ("Related")) is developing Farley Office and Retail (the "Project"). During the second quarter of 2020, a historic tax credit investor (the "Tax Credit Investor") funded $92,400,000 of capital contributions. The Tax Credit Investor is projected to have $142,000,000 of net capital contributed after making an estimated $185,000,000 in total contributions and receiving an estimated $43,000,000is expected to make additional capital contributions in distributions from the joint venture, which includes amounts paid upon the potential exercise of their put option, as discussed below.future periods.
The arrangement includes a put option whereby the joint venture may be obligated to purchase the Tax Credit Investor’s ownership interest in the Project at a future date. The put price is calculated based on a pre-determined formula. As exercise of the put option is outside of the joint venture’s control, the Tax Credit Investor’s interest, together with the put option, have been recorded to “redeemable noncontrolling interest in a consolidated subsidiary” on our consolidated balance sheetsheets as of September 30, 2021 and December 31, 2020. The redeemable noncontrolling interest is recorded at the greater of the carrying amount or redemption value at the end of each reporting period. Changes in the value from period to period are charged to “additional capital” in Vornado’s consolidated statements of changes in equity and to “partners’ capital” on the consolidated balance sheets of the Operating Partnership. There was no adjustment required for the three and nine months ended September 30, 2021 and 2020.
Below is a table summarizing the activity of the redeemable noncontrolling interest in a consolidated subsidiary.
(Amounts in thousands)(Amounts in thousands)For the Three Months Ended September 30, 2020For the Nine Months Ended September 30, 2020(Amounts in thousands)For the Three Months Ended September 30,For the Nine Months Ended September 30,
2021202020212020
Beginning balanceBeginning balance$94,112 $Beginning balance$94,913 $94,112 $94,520 $— 
Net incomeNet income171 307 Net income1,126 171 1,519 307 
ContributionsContributions92,400 Contributions— — — 92,400 
Other, netOther, net(1)1,575 Other, net— (1)— 1,575 
Ending balanceEnding balance$94,282 $94,282 Ending balance$96,039 $94,282 $96,039 $94,282 
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(UNAUDITED)
13.12.    Shareholders' Equity/Partners' Capital
Common Shares (Vornado Realty Trust)On September 22, 2021, Vornado sold 12,000,000 4.45% Series O cumulative redeemable preferred shares at a price of $25.00 per share, pursuant to an effective registration statement. Vornado received aggregate net proceeds of $291,195,000, after underwriters' discount and issuance costs, and contributed the net proceeds to the Operating Partnership in exchange for 12,000,000 4.45% Series O preferred units (with economic terms that mirror those of the Series O preferred shares). Dividends on the Series O preferred shares/units are cumulative and payable quarterly in arrears. The Series O preferred shares/units are not convertible into, or exchangeable for, any of our properties or securities. On or after five years from the date of issuance (or sooner under limited circumstances), Vornado may redeem the Series O preferred shares/units at a redemption price of $25.00 per share/unit, plus accrued and unpaid dividends/distributions through the date of redemption. The Series O preferred shares/units have no maturity date and will remain outstanding indefinitely unless redeemed by Vornado. Vornado used the net proceeds for the redemption of its 5.70% Series K cumulative redeemable preferred shares/units (see below).
On December 18, 2019, Vornado's BoardSeptember 13, 2021, we called for redemption of Trustees declaredall of the outstanding 5.70% Series K cumulative redeemable preferred shares/units. As a special dividendresult, as of $1.95September 30, 2021, we reclassified the 5.70% Series K preferred shares/units from shareholders' equity/partners' capital to liabilities on our consolidated balance sheets. On October 13, 2021, we redeemed all of the outstanding 5.70% Series K preferred shares/units at their redemption price of $25.00 per share,share/unit, or $372,380,000$300,000,000 in the aggregate, which was paid on January 15, 2020 to common shareholdersplus accrued and unpaid dividends/distributions through the date of record on December 30, 2019 (the "Record Date").
Class A Units (Vornado Realty L.P.)
On January 15, 2020, distributions of $1.95 per unit, or $398,292,000 in the aggregate, were paid to Class A unitholders of the Operating Partnership as of the Record Date, of which $372,380,000 was distributed to Vornado, inredemption. In connection with the special dividend declaredredemption, we expensed $9,033,000 of previously capitalized issuance costs in "Series K preferred share/unit issuance costs" on December 18, 2019 by Vornado's Boardour consolidated statements of Trustees.income to arrive at "net income attributable to common shareholders" for the three and nine months ended September 30, 2021.
The following table sets forth the details of our dividends/distributions per common share/Class A unit and dividends/distributions per share/unit for each class of preferred shares/units of beneficial interest.
(Per share/unit)(Per share/unit)For the Three Months Ended September 30,For the Nine Months Ended September 30,(Per share/unit)For the Three Months Ended September 30,For the Nine Months Ended September 30,
20202019202020192021202020212020
Shares/Units:Shares/Units:Shares/Units:
Common shares/Class A units held by Vornado: authorized 250,000,000 shares/unitsCommon shares/Class A units held by Vornado: authorized 250,000,000 shares/units$0.53 $0.66 $1.85 $1.98 Common shares/Class A units held by Vornado: authorized 250,000,000 shares/units$0.53 $0.53 $1.59 $1.85 
Convertible Preferred(1):
Convertible Preferred(1):
  
Convertible Preferred(1):
  
6.5% Series A: authorized 13,402 and 83,977 shares/units(2)
0.8125 0.8125 2.4375 2.4375 
Cumulative Redeemable Preferred(1):
    
6.5% Series A: authorized 12,902 and 13,402 shares/units(2)
6.5% Series A: authorized 12,902 and 13,402 shares/units(2)
0.8125 0.8125 2.4375 2.4375 
Cumulative Redeemable Preferred(3):
Cumulative Redeemable Preferred(3):
    
5.70% Series K: authorized 12,000,000 shares/units(3)
5.70% Series K: authorized 12,000,000 shares/units(3)
0.3563 0.3563 1.0689 1.0689 
5.70% Series K: authorized 12,000,000 shares/units(3)
0.3563 0.3563 1.0689 1.0689 
5.40% Series L: authorized 13,800,000 shares/units(3)
5.40% Series L: authorized 13,800,000 shares/units(3)
0.3375 0.3375 1.0125 1.0125 
5.40% Series L: authorized 13,800,000 shares/units(3)
0.3375 0.3375 1.0125 1.0125 
5.25% Series M: authorized 13,800,000 shares/units(3)
5.25% Series M: authorized 13,800,000 shares/units(3)
0.3281 0.3281 0.9843 0.9843 
5.25% Series M: authorized 13,800,000 shares/units(3)
0.3281 0.3281 0.9843 0.9843 
5.25% Series N: authorized 12,000,000 shares/units(4)
5.25% Series N: authorized 12,000,000 shares/units(4)
0.3281 N/A0.9843 N/A
4.45% Series O: authorized 12,000,000 shares/units(5)
4.45% Series O: authorized 12,000,000 shares/units(5)
0.0278 N/A0.0278 N/A
____________________
(1)Dividends on preferred shares and distributions on preferred units are cumulative and are payable quarterly in arrears.
(2)Redeemable at the option of Vornado under certain circumstances, at a redemption price of 1.9531 common shares/Class A units per Series A Preferred Share/Unit plus accrued and unpaid dividends/distributions through the date of redemption, or convertible at any time at the option of the holder for 1.9531 common shares/Class A units per Series A Preferred Share/Unit.
(3)RedeemableSeries L preferred shares/units are redeemable at Vornado's option at a redemption price of $25.00 per share/unit, plus accrued and unpaid dividends/distributions through the date of redemption. Series M preferred shares/units are redeemable commencing December 2022, Series N preferred shares/units are redeemable commencing November 2025 and Series O preferred shares/units are redeemable commencing September 2026. Series K preferred shares/units were redeemed on October 13, 2021.
(4)Issued in November 2020.
(5)Issued in September 2021.



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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED
(UNAUDITED)
13.12.    Shareholders' Equity/Partners' Capital - continued
Accumulated Other Comprehensive Loss
The following tables set forth the changes in accumulated other comprehensive loss by component.
(Amounts in thousands)TotalAccumulated other comprehensive income (loss) of nonconsolidated
subsidiaries
Interest
rate swaps
Other
For the Three Months Ended September 30, 2020:
Balance as of June 30, 2020$(82,646)$12 $(81,525)$(1,133)
Other comprehensive (loss) income(7,188)(15,634)7,926 520 
Balance as of September 30, 2020$(89,834)$(15,622)$(73,599)$(613)
For the Three Months Ended September 30, 2019:
Balance as of June 30, 2019$(38,066)$(18)$(33,785)$(4,263)
Other comprehensive (loss) income(9,293)11 (9,953)649 
Balance as of September 30, 2019$(47,359)$(7)$(43,738)$(3,614)
For the Nine Months Ended September 30, 2020:
Balance as of December 31, 2019$(40,233)$$(36,126)$(4,111)
Other comprehensive (loss) income(49,601)(15,626)(37,473)3,498 
Balance as of September 30, 2020$(89,834)$(15,622)$(73,599)$(613)
For the Nine Months Ended September 30, 2019:
Balance as of December 31, 2018$7,664 $3,253 $11,759 $(7,348)
Other comprehensive (loss) income(52,712)(949)(55,497)3,734 
Amount reclassified from accumulated other comprehensive loss(2,311)(2,311)
Balance as of September 30, 2019$(47,359)$(7)$(43,738)$(3,614)
(Amounts in thousands)




For the three months ended September 30, 2021:
TotalAccumulated other comprehensive loss of nonconsolidated subsidiariesInterest
rate swaps
Other
Balance as of June 30, 2021$(51,437)$(9,279)$(45,905)$3,747 
Other comprehensive income (loss)6,258 1,322 5,360 (424)
Balance as of September 30, 2021$(45,179)$(7,957)$(40,545)$3,323 
For the three months ended September 30, 2020:
Balance as of June 30, 2020$(82,646)$12 $(81,525)$(1,133)
Other comprehensive (loss) income(7,188)(15,634)7,926 520 
Balance as of September 30, 2020$(89,834)$(15,622)$(73,599)$(613)
For the nine months ended September 30, 2021:
Balance as of December 31, 2020$(75,099)$(14,338)$(66,098)$5,337 
Other comprehensive income (loss)29,920 6,381 25,553 (2,014)
Balance as of September 30, 2021$(45,179)$(7,957)$(40,545)$3,323 
For the nine months ended September 30, 2020:
Balance as of December 31, 2019$(40,233)$$(36,126)$(4,111)
Other comprehensive (loss) income(49,601)(15,626)(37,473)3,498 
Balance as of September 30, 2020$(89,834)$(15,622)$(73,599)$(613)
34

14.
VORNADO REALTY TRUST AND VORNADO REALTY L.P.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED
(UNAUDITED)
13.    Variable Interest Entities ("VIEs")
Unconsolidated VIEs
As of September 30, 20202021 and December 31, 2019,2020, we have several unconsolidated VIEs. We do not consolidate these entities because we are not the primary beneficiary and the nature of our involvement in the activities of these entities does not give us power over decisions that significantly affect these entities’ economic performance. We account for our investment in these entities under the equity method (see Note 86 Investments in Partially Owned Entities). As of September 30, 20202021 and December 31, 2019,2020, the net carrying amount of our investments in these entities was $222,924,000$71,085,000 and $217,451,000,$224,754,000, respectively, and our maximum exposure to loss in these entities is limited to the carrying amount of our investments.
Consolidated VIEs
Our most significant consolidated VIEs are the Operating Partnership (for Vornado), the Farley joint venture and certain properties that have non-controlling interests. These entities are VIEs because the non-controlling interests do not have substantive kick-out or participating rights. We consolidate these entities because we control all significant business activities.
As of September 30, 2021, the total assets and liabilities of our consolidated VIEs, excluding the Operating Partnership, were $4,409,171,000 and $2,369,114,000, respectively. As of December 31, 2020, the total assets and liabilities of our consolidated VIEs, excluding the Operating Partnership, were $5,254,102,000$4,053,841,000 and $2,962,558,000, respectively. As of December 31, 2019, the total assets and liabilities of our consolidated VIEs, excluding the Operating Partnership, were $4,923,656,000 and $2,646,623,000,$1,722,719,000, respectively.
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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED
(UNAUDITED)
15.14.    Fair Value Measurements
ASC 820 defines fair value and establishes a framework for measuring fair value. The objective of fair value is to determine the price that would be received upon the sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (the exit price). ASC 820 establishes a fair value hierarchy that prioritizes observable and unobservable inputs used to measure fair value into three levels: Level 1 – quoted prices (unadjusted) in active markets that are accessible at the measurement date for assets or liabilities; Level 2 – observable prices that are based on inputs not quoted in active markets, but corroborated by market data; and Level 3 – unobservable inputs that are used when little or no market data is available. The fair value hierarchy gives the highest priority to Level 1 inputs and the lowest priority to Level 3 inputs. In determining fair value, we utilize valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible, as well as consider counterparty credit risk in our assessment of fair value. Considerable judgment is necessary to interpret Level 2 and 3 inputs in determining the fair value of our financial and non-financial assets and liabilities. Accordingly, our fair value estimates, which are made at the end of each reporting period, may be different than the amounts that may ultimately be realized upon sale or disposition of these assets.
Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis
Financial assets and liabilities that are measured at fair value on our consolidated balance sheets consist of (i) marketable securities, (ii) real estate fund investments, (iii)(ii) the assets in our deferred compensation plan (for which there is a corresponding liability on our consolidated balance sheets), (iv)(iii) loans receivable (for which we have elected the fair value option under ASC 825-10)Subtopic 825-10, Financial Instruments ("ASC 825-10")), (v)(iv) interest rate swaps and (vi)(v) mandatorily redeemable instruments (Series G-1 through G-4 convertible preferred units and Series D-13 cumulative redeemable preferred units). The tables belowon the following page aggregate the fair values of these financial assets and liabilities by their levels in the fair value hierarchy.
(Amounts in thousands)As of September 30, 2020
TotalLevel 1Level 2Level 3
Real estate fund investments$3,739 $$$3,739 
Deferred compensation plan assets ($9,703 included in restricted cash and $88,840 in other assets)98,543 59,597 38,946 
Loans receivable ($42,174 included in investments in partially owned entities and $5,335 in other assets)47,509 47,509 
Interest rate swaps (included in other assets)17 17 
Total assets$149,808 $59,597 $17 $90,194 
Mandatorily redeemable instruments (included in other liabilities)$49,947 $49,947 $$
Interest rate swaps (included in other liabilities)73,536 73,536 
Total liabilities$123,483 $49,947 $73,536 $
(Amounts in thousands)As of December 31, 2019
TotalLevel 1Level 2Level 3
Marketable securities$33,313 $33,313 $$
Real estate fund investments222,649 222,649 
Deferred compensation plan assets ($11,819 included in restricted cash and $91,954 in other assets)103,773 71,338 32,435 
Interest rate swaps (included in other assets)4,327 4,327 
Total assets$364,062 $104,651 $4,327 $255,084 
Mandatorily redeemable instruments (included in other liabilities)$50,561 $50,561 $$
Interest rate swaps (included in other liabilities)40,354 40,354 
Total liabilities$90,915 $50,561 $40,354 $


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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED
(UNAUDITED)
15.14.    Fair Value Measurements - continued
Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis - continued
(Amounts in thousands)As of September 30, 2021
TotalLevel 1Level 2Level 3
Real estate fund investments$3,739 $— $— $3,739 
Deferred compensation plan assets ($4,407 included in restricted cash and $103,454 in other assets)107,861 61,292 — 46,569 
Loans receivable ($45,610 included in investments in partially owned entities and $3,760 in other assets)49,370 — — 49,370 
Interest rate swaps and caps (included in other assets)5,091 — 5,091 — 
Total assets$166,061 $61,292 $5,091 $99,678 
Mandatorily redeemable instruments (included in other liabilities)$50,149 $50,149 $— $— 
Interest rate swaps (included in other liabilities)45,392 — 45,392 — 
Total liabilities$95,541 $50,149 $45,392 $— 
(Amounts in thousands)As of December 31, 2020
TotalLevel 1Level 2Level 3
Real estate fund investments$3,739 $— $— $3,739 
Deferred compensation plan assets ($10,813 included in restricted cash and $94,751 in other assets)105,564 65,636 — 39,928 
Loans receivable ($43,008 included in investments in partially owned entities and $4,735 in other assets)47,743 — — 47,743 
Interest rate swaps and caps (included in other assets)17 — 17 — 
Total assets$157,063 $65,636 $17 $91,410 
Mandatorily redeemable instruments (included in other liabilities)$50,002 $50,002 $— $— 
Interest rate swaps (included in other liabilities)66,033 — 66,033 — 
Total liabilities$116,035 $50,002 $66,033 $— 
Real Estate Fund Investments
As of September 30, 2020,2021, we had 4 real estate fund investments with an aggregate fair value of $3,739,000, $338,327,000$339,812,000 below cost. These investments are classified as Level 3.
Significant unobservable quantitative inputs used in determining the fair value of each investment include capitalization rates and discount rates. These rates are based on the location, type and nature of each property, current and anticipated market conditions, industry publications and from the experience of our Acquisitions and Capital Markets departments. Significant unobservable quantitative inputs in the table below were utilized in determining the fair value of these real estate fund investments.
RangeWeighted Average
(based on fair value of investments)
RangeWeighted Average
(based on fair value of assets)
Unobservable Quantitative InputUnobservable Quantitative InputSeptember 30, 2020December 31, 2019September 30, 2020December 31, 2019Unobservable Quantitative InputSeptember 30, 2021December 31, 2020September 30, 2021December 31, 2020
Discount ratesDiscount rates7.8% to 15.0%8.2% to 12.0%10.0%9.3%Discount rates7.2% to 15.0%7.6% to 15.0%11.9%12.7%
Terminal capitalization ratesTerminal capitalization rates5.5% to 10.1%4.6% to 8.2%10.1%5.3%Terminal capitalization rates5.3% to 10.6%5.5% to 10.3%8.1%7.9%
The inputs above are subject to change based on changes in economic and market conditions and/or changes in use or timing of exit. Changes in discount rates and terminal capitalization rates result in increases or decreases in the fair values of these investments. The discount rates encompass, among other things, uncertainties in the valuation models with respect to terminal capitalization rates and the amount and timing of cash flows. Therefore, a change in the fair value of these investments resulting from a change in the terminal capitalization rate may be partially offset by a change in the discount rate. It is not possible for us to predict the effect of future economic or market conditions on our estimated fair values. 
36

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED
(UNAUDITED)
14.    Fair Value Measurements - continued
Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis - continued
Real Estate Fund Investments - continued
The table below summarizes the changes in the fair value of real estate fund investments that are classified as Level 3.
(Amounts in thousands)(Amounts in thousands)For the Three Months Ended September 30,For the Nine Months Ended September 30,(Amounts in thousands)For the Three Months Ended September 30,For the Nine Months Ended September 30,
20202019202020192021202020212020
Beginning balanceBeginning balance$17,453 $306,596 $222,649 $318,758 Beginning balance$3,739 $17,453 $3,739 $222,649 
Purchases/additional fundingsPurchases/additional fundings502 6,502 4,000 Purchases/additional fundings— 502 789 6,502 
Net unrealized loss on held investmentsNet unrealized loss on held investments(14,216)(225,412)(16,162)Net unrealized loss on held investments— (14,216)(789)(225,412)
Ending balanceEnding balance$3,739 $306,596 $3,739 $306,596 Ending balance$3,739 $3,739 $3,739 $3,739 
Deferred Compensation Plan Assets
Deferred compensation plan assets that are classified as Level 3 consist of investments in limited partnerships and investment funds, which are managed by third parties. We receive quarterly financial reports from a third-party administrator, which are compiled from the quarterly reports provided to them from each limited partnership and investment fund. The quarterly reports provide net asset values on a fair value basis which are audited by independent public accounting firms on an annual basis. The period of time over which these underlying assets are expected to be liquidated is unknown. The third party administrator does not adjust these values in determining our share of the net assets and we do not adjust these values when reported in our consolidated financial statements.
The table below summarizes the changes in the fair value of deferred compensation plan assets that are classified as Level 3.
(Amounts in thousands)(Amounts in thousands)For the Three Months Ended September 30,For the Nine Months Ended September 30,(Amounts in thousands)For the Three Months Ended September 30,For the Nine Months Ended September 30,
20202019202020192021202020212020
Beginning balanceBeginning balance$36,172 $21,991 $32,435 $37,808 Beginning balance$44,855 $36,172 $39,928 $32,435 
PurchasesPurchases666 5,437 7,615 8,314 Purchases2,154 666 5,167 7,615 
SalesSales(652)(2,832)(20,807)Sales(1,547)— (2,236)(2,832)
Realized and unrealized gains2,116 116 925 854 
Realized and unrealized (losses) gainsRealized and unrealized (losses) gains(69)2,116 2,193 925 
Other, netOther, net(8)285 803 1,008 Other, net1,176 (8)1,517 803 
Ending balanceEnding balance$38,946 $27,177 $38,946 $27,177 Ending balance$46,569 $38,946 $46,569 $38,946 
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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED
(UNAUDITED)
15.    Fair Value Measurements - continued
Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis - continued
Loans Receivable
Loans receivable consist of loan investments in real estate related assets for which we have elected the fair value option under ASC 825-10 as of January 1, 2020.825-10. These investments are classified as Level 3.
Significant unobservable quantitative inputs used in determining the fair value of each investment include capitalization rates and discount rates. These rates are based on the location, type and nature of each property, current and anticipated market conditions, industry publications and from the experience of our Acquisitions and Capital Markets departments. Significant unobservable quantitative inputs in the table below were utilized in determining the fair value of these loans receivable.
September 30, 2020
RangeWeighted Average
(based on fair value of investments)
RangeWeighted Average
(based on fair value of investments)
Unobservable Quantitative InputUnobservable Quantitative InputUnobservable Quantitative InputSeptember 30, 2021December 31, 2020September 30, 2021December 31, 2020
Discount ratesDiscount rates6.0% to 6.5%6.1%Discount rates6.5%6.5%6.5%6.5%
Terminal capitalization ratesTerminal capitalization rates5.0%5.0%Terminal capitalization rates5.0%5.0%5.0%5.0%
The table below summarizes the changes in fair value of loans receivable that are classified as Level 3.
(Amounts in thousands)(Amounts in thousands)For the Three Months Ended September 30, 2020For the Nine Months Ended September 30, 2020(Amounts in thousands)For the Three Months Ended September 30,For the Nine Months Ended September 30,
2021202020212020
Beginning balanceBeginning balance$46,675 $59,251 Beginning balance$48,776 $46,675 $47,743 $59,251 
Credit lossesCredit losses(13,369)Credit losses— — — (13,369)
Interest accrualInterest accrual834 1,627 Interest accrual894 834 2,602 1,627 
PaydownsPaydowns(300)— (975)— 
Ending balanceEnding balance$47,509 $47,509 Ending balance$49,370 $47,509 $49,370 $47,509 

37

VORNADO REALTY TRUST AND VORNADO REALTY L.P.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED
(UNAUDITED)
14.    Fair Value Measurements - continued
Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis - continued
Derivatives and Hedging
We utilize various financial instruments to mitigate the impact of interest rate fluctuations on our cash flows and earnings, including hedging strategies, depending on our analysis of the interest rate environment and the costs and risks of such strategies. We recognize the fair values of all derivatives in "other assets" or "other liabilities" on our consolidated balance sheets. Derivatives that are not hedges are adjusted to fair value through earnings. If a derivative is a hedge, depending on the nature of the hedge, changes in the fair value of the derivative will either be offset against the change in fair value of the hedge asset, liability, or firm commitment through earnings, or recognized in other comprehensive income until the hedged item is recognized in earnings. Reported net income and equity may increase or decrease prospectively, depending on future levels of interest rates and other variables affecting the fair values of derivative instruments and hedged items, but will have no effect on cash flows.
The following tables summarize our consolidated derivative instruments, all of which hedge variable rate debt, as of September 30, 20202021 and December 31, 2019.2020.
(Amounts in thousands)As of September 30, 2020
Variable Rate
Hedged Item (Interest rate swaps)Fair ValueNotional AmountSpread over LIBORInterest RateSwapped RateExpiration Date
Included in other assets:
Other$17 $175,000 
Included in other liabilities:
Unsecured term loan$63,437 $750,000 (1)L+1001.15%3.87%10/23
33-00 Northern Boulevard mortgage loan9,065 100,000 L+1801.96%4.14%1/25
888 Seventh Avenue mortgage loan1,034 375,000 L+1701.84%3.25%12/20
$73,536 $1,225,000 
(Amounts in thousands)As of September 30, 2021
Variable Rate
Hedged ItemFair ValueNotional AmountSpread over LIBORInterest RateSwapped RateExpiration Date
Included in other assets:
555 California Street mortgage loan interest rate swap(1)
$3,159 $840,000 (2)L+1932.02%2.26%5/24
PENN 11 mortgage loan interest rate swap(3)
1,850 500,000 L+2752.83%3.03%3/24
Various interest rate caps82 700,000 
$5,091 $2,040,000 
Included in other liabilities:
Unsecured term loan interest rate swap$39,839 $750,000 (4)L+1001.09%3.87%10/23
33-00 Northern Boulevard mortgage loan interest rate swap5,553 100,000 L+1801.89%4.14%1/25
$45,392 $850,000 
____________________
(1)Entered into on May 15, 2021.
(2)Represents our 70.0% share of the $1.2 billion mortgage loan.
(3)Entered into on March 7, 2021.
(4)Remaining $50,000 balance of our unsecured term loan bears interest at a floating rate of LIBOR plus 1.00%.

(Amounts in thousands)As of December 31, 2020
Variable Rate
Hedged ItemFair ValueNotional AmountSpread over LIBORInterest RateSwapped RateExpiration Date
Included in other assets:
Various interest rate caps$17 $175,000 
Included in other liabilities:
Unsecured term loan interest rate swap$57,723 $750,000 (1)L+1001.15%3.87%10/23
33-00 Northern Boulevard mortgage loan interest rate swap8,310 100,000 L+1801.95%4.14%1/25
$66,033 $850,000 
____________________
(1)Remaining $50,000 balance of our unsecured term loan bears interest at a floating rate of LIBOR plus 1.00%.


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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED
(UNAUDITED)
15.14.    Fair Value Measurements - continued
Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis - continued
Derivatives and Hedging - continued
(Amounts in thousands)As of December 31, 2019
Variable Rate
Hedged Item (Interest rate swaps)Fair ValueNotional AmountSpread over LIBORInterest RateSwapped RateExpiration Date
Included in other assets:
770 Broadway mortgage loan$4,045 $700,000 L+1753.46%2.56%9/20
888 Seventh Avenue mortgage loan218 375,000 L+1703.44%3.25%12/20
Other64 175,000 
$4,327 $1,250,000 
Included in other liabilities:
Unsecured term loan$36,809 $750,000 L+1002.80%3.87%10/23
33-00 Northern Boulevard mortgage loan3,545 100,000 L+1803.52%4.14%1/25
$40,354 $850,000 
Fair Value Measurements on a Nonrecurring Basis
As of September 30, 2020, assets measured at fair value on a nonrecurring basis (for impairment purposes) on our consolidated balance sheet consisted of our investment in Fifth Avenue and Times Square JV. There were no assets measured at fair value on a nonrecurring basis on our consolidated balance sheet as of September 30, 2021. As of December 31, 2019.2020, assets measured at fair value on a nonrecurring basis on our consolidated balance sheet consisted of real estate assets that have been written down to estimated fair value for impairment purposes. The impairment losses primarily relate to wholly owned street retail assets.
Our estimate of the fair value of our investment in Fifth Avenue and Times Square JVthese assets was measured using awidely accepted valuation techniques including (i) discounted cash flow analysisanalyses based upon market conditions and expectations of growth and utilized unobservable quantitative inputs, including a capitalization rate of 4.50%5.0% and discount rate of 6.25%. See Note 8 - Investments in Partially Owned Entities for details of non-cash impairment losses recognized during the three7.0%, and nine months ended September 30, 2020.(ii) comparable sales activity.
(Amounts in thousands)(Amounts in thousands)As of September 30, 2020(Amounts in thousands)As of December 31, 2020
TotalLevel 1Level 2Level 3TotalLevel 1Level 2Level 3
Investment in Fifth Avenue and Times Square JV$2,811,374 $$$2,811,374 
Real estate assetsReal estate assets$191,116 $— $— $191,116 
Financial Assets and Liabilities not Measured at Fair Value
Financial assets and liabilities that are not measured at fair value on our consolidated balance sheets include cash equivalents (primarily money market funds, which invest in obligations of the United States government), and our secured and unsecured debt. Estimates of the fair value of these instruments are determined by the standard practice of modeling the contractual cash flows required under the instrument and discounting them back to their present value at the appropriate current risk adjusted interest rate, which is provided by a third-party specialist. For floating rate debt, we use forward rates derived from observable market yield curves to project the expected cash flows we would be required to make under the instrument. The fair value of cash equivalents and borrowings under our unsecured revolving credit facilities and unsecured term loan are classified as Level 1. The fair value of our secured debt and unsecured debt are classified as Level 2. The table below summarizes the carrying amounts and fair value of these financial instruments.
(Amounts in thousands)(Amounts in thousands)As of September 30, 2020As of December 31, 2019(Amounts in thousands)As of September 30, 2021As of December 31, 2020
Carrying
Amount
Fair
Value
Carrying
Amount
Fair
Value
Carrying
Amount
Fair
Value
Carrying
Amount
Fair
Value
Cash equivalentsCash equivalents$1,248,051 $1,248,000 $1,276,815 $1,277,000 Cash equivalents$1,730,951 $1,731,000 $1,476,427 $1,476,000 
Debt:Debt:Debt:
Mortgages payable$5,661,132 $5,660,000 $5,670,016 $5,714,000 Mortgages payable$6,104,615 $6,080,000 $5,608,458 $5,612,000 
Senior unsecured notes450,000 468,000 450,000 468,000 Senior unsecured notes1,200,000 1,246,000 450,000 476,000 
Unsecured term loan800,000 800,000 750,000 750,000 Unsecured term loan800,000 800,000 800,000 800,000 
Unsecured revolving credit facilities575,000 575,000 575,000 575,000 Unsecured revolving credit facilities575,000 575,000 575,000 575,000 
Total$7,486,132 (1)$7,503,000 $7,445,016 (1)$7,507,000 Total$8,679,615 (1)$8,701,000 $7,433,458 (1)$7,463,000 
____________________
(1)Excludes $29,000$47,874 and $38,407$34,462 of deferred financing costs, net and other as of September 30, 20202021 and December 31, 2019,2020, respectively.
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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED
(UNAUDITED)
16.15.    Stock-based Compensation
We account for all equity-based compensation in accordance with ASC Topic 718, Compensation - Stock Compensation. Stock-based compensation expense, a component of "general and administrative" expense on our consolidated statements of income, was $6,170,000$5,510,000 and $5,871,000$6,170,000 for the three months ended September 30, 20202021 and 2019,2020, respectively, and $39,638,000$32,889,000 and $48,045,000$39,638,000 for the nine months ended September 30, 20202021 and 2019,2020, respectively.
2020 Outperformance Plan ("2020 OPP")
On March 30, 2020, the Compensation Committee of Vornado's Board of Trustees (the "Committee") approved the 2020 OPP, a multi-year, $35,000,000 performance-based equity compensation plan of which $32,930,000 was granted to senior executives. The fair value of the 2020 OPP granted was $11,686,000, of which $7,583,000 was immediately expensed due to the acceleration of vesting for employees who are retirement eligible (have reached age 65 or age 60 with at least 20 years of service). The remaining $4,103,000 is being amortized into expense over a five-year period from the date of grant using a graded vesting attribution model.
Under the 2020 OPP, participants have the opportunity to earn compensation payable in the form of equity awards if Vornado common shares outperform a predetermined total shareholder return (“TSR”) and/or outperform the market with respect to relative total TSR during the three-year performance period (the “Performance Period”) from March 30, 2020 to March 30, 2023 (the “Measurement Date”). Specifically, awards under the 2020 OPP may potentially be earned if Vornado (i) achieves a TSR above a benchmark weighted index (the “Index”) comprised 80% of the SNL US Office REIT Index and 20% of the SNL US Retail Index over the Performance Period (the “Relative Component”), and/or (ii) achieves a TSR greater than 21% over the Performance Period (the “Absolute Component”). The value of awards under the Relative Component and Absolute Component will be calculated separately and will each be subject to an aggregate $35,000,000 maximum award cap for all participants. The 2 components will be added together to determine the aggregate award size, which shall also be subject to the aggregate $35,000,000 maximum award cap for all participants. In the event awards are earned under the Absolute Component, but Vornado underperforms the Index by more than 200 basis points per annum over the Performance Period (600 basis points over the three years), the amount earned under the Absolute Component will be reduced based on the degree by which the Index exceeds Vornado’s TSR with the maximum payout being 50% under the Absolute Component. In the event awards are earned under the Relative Component, but Vornado fails to achieve a TSR of at least 2% per annum, awards earned under the Relative Component will be reduced on a ratable sliding scale based on Vornado’s absolute TSR performance, with awards earned under the Relative Component being reduced by a maximum of 50% in the event Vornado’s TSR during the Measurement Period is 0% or negative. If the designated performance objectives are achieved, awards earned under the 2020 OPP will vest ratably on the Measurement Date and the first and second anniversary of the Measurement Date. In addition, all of Vornado’s Named Executive Officers (as defined in Vornado’s Proxy Statement filed on Schedule 14A with the Securities and Exchange Commission on April 3, 2020) are required to hold any earned and vested awards for one year following each such vesting date. Dividends on awards granted under the 2020 OPP accrue during the Performance Period and are paid to participants if awards are ultimately earned based on the achievement of the designated performance objectives.
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16.
VORNADO REALTY TRUST AND VORNADO REALTY L.P.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED
(UNAUDITED)
17.    (Expense from(Impairment Losses, Transaction Related Costs and Impairment Losses) and Gain fromOther) Lease Liability Extinguishment NetGain
The following table sets forth the details of (expense from(impairment losses, transaction related costs and impairment losses) and gain fromother) lease liability extinguishment net:gain:
(Amounts in thousands)For the Three Months Ended September 30,For the Nine Months Ended September 30,
2020201920202019
Transaction related costs$(584)$(1,576)$(1,694)$(1,955)
608 Fifth Avenue non-cash lease liability extinguishment gain (impairment
   loss) (see below for details)
70,260 (93,860)
Other non-cash impairment losses(7,500)
$(584)$(1,576)$68,566 $(103,315)
608 Fifth Avenue
During the second quarter of 2019, Arcadia Group US Ltd ("Arcadia Group"), the operator of Topshop, our retail tenant at 608 Fifth Avenue, filed for Chapter 15 bankruptcy protection in the United States. On June 28, 2019, Arcadia Group closed all of its stores in the United States. 608 Fifth Avenue was subject to a land and building lease which was set to expire in 2033. During the second quarter of 2019, we concluded that the carrying amount of the property was not recoverable and recognized a $93,860,000 non-cash impairment loss on our consolidated statements of income, of which $75,220,000 resulted from the impairment of our right-of-use asset.
On May 20, 2020, we entered into an agreement with the land and building lessor at 608 Fifth Avenue to surrender the property. Per the terms of the agreement, we were released from our obligations under the lease and assigned all of our right, title and interest in the tenant leases of 608 Fifth Avenue to the land and building lessor. In connection therewith, we removed the lease liability from our consolidated balance sheets which resulted in a $70,260,000 gain recorded on our consolidated statements of income during the nine months ended September 30, 2020.
(Amounts in thousands)For the Three Months Ended September 30,For the Nine Months Ended September 30,
2021202020212020
Real estate impairment losses (see page 29 for details)$(7,880)$— $(7,880)$— 
Transaction related costs and other(1,801)(584)(2,750)(1,694)
608 Fifth Avenue lease liability extinguishment gain— — — 70,260 
$(9,681)$(584)$(10,630)$68,566 
18.17.    Interest and Other Investment Income (Loss), Net
The following table sets forth the details of interest and other investment income (loss), net:
(Amounts in thousands)For the Three Months Ended September 30,For the Nine Months Ended September 30,
2020201920202019
(Decrease) increase in fair value of marketable securities:
PREIT(1)
$$(4,875)$(4,938)$(19,211)
Lexington Realty Trust(2)
16,068 
Other48 
(4,868)(4,938)(3,095)
Interest on loans receivable574 1,604 2,810 4,845 
Interest on cash and cash equivalents and restricted cash253 4,060 5,717 8,753 
Dividends on marketable securities1,312 2,625 
Credit losses on loans receivable(3)
(13,369)
Other, net902 937 2,712 2,802 
$1,729 $3,045 $(7,068)$15,930 
____________________
(1)Sold on January 23, 2020 (see page 27 for details).
(2)Sold on March 1, 2019.
(3)See Note 4 - Recently Issued Accounting Literatureand Note 15 - Fair Value Measurementsfor details.
(Amounts in thousands)For the Three Months Ended September 30,For the Nine Months Ended September 30,
2021202020212020
Interest on loans receivable$561 $574 $1,679 $2,810 
Interest on cash and cash equivalents and restricted cash67 253 207 5,717 
Credit losses on loans receivable— — — (13,369)
Market-to-market decrease in the fair value of marketable security (sold on January 23, 2020)— — — (4,938)
Other, net902 1,808 2,712 
Total$633 $1,729 $3,694 $(7,068)
19.18.    Interest and Debt Expense
The following table sets forth the details of interest and debt expense:
(Amounts in thousands)(Amounts in thousands)For the Three Months Ended September 30,For the Nine Months Ended September 30,(Amounts in thousands)For the Three Months Ended September 30,For the Nine Months Ended September 30,
20202019202020192021202020212020
Interest expense(1)
Interest expense(1)
$61,793 $72,345 $191,973 $266,597 
Interest expense(1)
$57,028 $61,793 $170,938 $191,973 
Capitalized interest and debt expenseCapitalized interest and debt expense(9,328)(16,047)(30,829)(59,184)Capitalized interest and debt expense(10,739)(9,328)(31,785)(30,829)
Amortization of deferred financing costsAmortization of deferred financing costs4,906 5,150 13,474 19,527 Amortization of deferred financing costs4,657 4,906 13,751 13,474 
$57,371 $61,448 $174,618 $226,940 $50,946 $57,371 $152,904 $174,618 
____________________
(1)Thenine months ended September 30, 2019 includes $22,540 of debt prepayment costs in connection with the redemption of $400,000 5.00% senior unsecured notes which were scheduled to mature in January 2022.
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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED
(UNAUDITED)
20.19.    Income (Loss) Per Share/Income (Loss) Per Class A Unit
Vornado Realty Trust
The following table presents the calculations of (i) basic income (loss) per common share which includes the weighted average number of common shares outstanding without regard to dilutive potential common shares and (ii) diluted income (loss) per common share which includes the weighted average common shares and dilutive share equivalents. Unvested share-based payment awards that contain nonforfeitable rights to dividends, whether paid or unpaid, are accounted for as participating securities. Earnings are allocated to participating securities, which include restricted stock awards, based on the two-class method. Other potential dilutive share equivalents such as our employee stock options, restricted Operating Partnership units ("OP Units"), out-performance plan awards ("OPPs"), appreciation-only long term incentive plan units ("AO LTIP Units") and Performance Conditioned AO LTIP Units are included in the computation of diluted Earnings Per Share ("EPS") using the treasury stock method, while the dilutive effect of our Series A convertible preferred shares is reflected in diluted EPS by application of the if-converted method.
(Amounts in thousands, except per share amounts)(Amounts in thousands, except per share amounts)For the Three Months Ended September 30,For the Nine Months Ended September 30,(Amounts in thousands, except per share amounts)For the Three Months Ended September 30,For the Nine Months Ended September 30,
20202019202020192021202020212020
Numerator:Numerator:Numerator:
Income (loss) from continuing operations, net of (income) loss attributable to noncontrolling interests$65,700 $335,445 $(102,026)$2,942,267 
Loss from discontinued operations(7)(80)
Net income (loss) attributable to VornadoNet income (loss) attributable to Vornado65,700 335,438 (102,026)2,942,187 Net income (loss) attributable to Vornado$63,522 $65,700 $148,584 $(102,026)
Preferred share dividendsPreferred share dividends(12,530)(12,532)(37,591)(37,598)Preferred share dividends(16,800)(12,530)(49,734)(37,591)
Series K preferred share issuance costsSeries K preferred share issuance costs(9,033)— (9,033)— 
Net income (loss) attributable to common shareholdersNet income (loss) attributable to common shareholders53,170 322,906 (139,617)2,904,589 Net income (loss) attributable to common shareholders37,689 53,170 89,817 (139,617)
Earnings allocated to unvested participating securitiesEarnings allocated to unvested participating securities(15)(33)(84)(291)Earnings allocated to unvested participating securities(8)(15)(26)(84)
Numerator for basic income (loss) per share53,155 322,873 (139,701)2,904,298 
Impact of assumed conversions:
Convertible preferred share dividends14 43 
Earnings allocated to Out-Performance Plan units
Numerator for diluted income (loss) per share$53,155 $322,887 $(139,701)$2,904,350 
Numerator for basic and diluted income (loss) per shareNumerator for basic and diluted income (loss) per share$37,681 $53,155 $89,791 $(139,701)
Denominator:Denominator:Denominator:
Denominator for basic income (loss) per share – weighted average shares Denominator for basic income (loss) per share – weighted average shares 191,162 190,814 191,102 190,762 Denominator for basic income (loss) per share – weighted average shares 191,577 191,162 191,508 191,102 
Effect of dilutive securities(1):
Effect of dilutive securities(1):
Effect of dilutive securities(1):
Out-Performance Plan unitsOut-Performance Plan units452 — 630 — 
AO LTIP unitsAO LTIP units— 10 — 
Employee stock options and restricted stock awardsEmployee stock options and restricted stock awards176 227 Employee stock options and restricted stock awards— — 
Convertible preferred shares34 35 
Out-Performance Plan units
Denominator for diluted income (loss) per share – weighted average shares and assumed conversionsDenominator for diluted income (loss) per share – weighted average shares and assumed conversions191,162 191,024 191,102 191,027 Denominator for diluted income (loss) per share – weighted average shares and assumed conversions192,041 191,162 192,151 191,102 
INCOME (LOSS) PER COMMON SHARE - BASIC:INCOME (LOSS) PER COMMON SHARE - BASIC:INCOME (LOSS) PER COMMON SHARE - BASIC:
Net income (loss) per common shareNet income (loss) per common share$0.28 $1.69 $(0.73)$15.22 Net income (loss) per common share$0.20 $0.28 $0.47 $(0.73)
INCOME (LOSS) PER COMMON SHARE - DILUTED:INCOME (LOSS) PER COMMON SHARE - DILUTED:INCOME (LOSS) PER COMMON SHARE - DILUTED:
Net income (loss) per common shareNet income (loss) per common share$0.28 $1.69 $(0.73)$15.20 Net income (loss) per common share$0.20 $0.28 $0.47 $(0.73)
____________________
(1)The effect of dilutive securities excluded an aggregate of 14,15913,876 and 13,43114,159 weighted average common share equivalents for the three months ended September 30, 20202021 and 2019,2020, respectively, and 14,00713,815 and 13,06714,007 weighted average common share equivalents for the nine months ended September 30, 20202021 and 2019,2020, respectively, as their effect was anti-dilutive.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED
(UNAUDITED)
20.19.    Income (Loss) Per Share/Income (Loss) Per Class A Unit - continued
Vornado Realty L.P.
The following table presents the calculations of (i) basic income (loss) per Class A unit which includes the weighted average number of Class A units outstanding without regard to dilutive potential Class A units and (ii) diluted income (loss) per Class A unit which includes the weighted average Class A unitunits and dilutive Class A unit equivalents. Unvested share-based payment awards that contain non-forfeitable rights to dividends, whether paid or unpaid, are accounted for as participating securities. Earnings are allocated to participating securities, which include Vornado restricted stock awards, OP Units and OPPs, based on the two-class method. Other potential dilutive unit equivalents such as Vornado stock options, AO LTIP Units and Performance Conditioned AO LTIP Units are included in the computation of diluted income per unit ("EPU") using the treasury stock method, while the dilutive effect of our Series A convertible preferred units is reflected in diluted EPU by application of the if-converted method.
(Amounts in thousands, except per unit amounts)(Amounts in thousands, except per unit amounts)For the Three Months Ended September 30,For the Nine Months Ended September 30,(Amounts in thousands, except per unit amounts)For the Three Months Ended September 30,For the Nine Months Ended September 30,
20202019202020192021202020212020
Numerator:Numerator:Numerator:
Income (loss) from continuing operations, net of (income) loss attributable to noncontrolling interests in consolidated subsidiaries$69,584 $358,083 $(112,116)$3,139,626 
Loss from discontinued operations(8)(85)
Net income (loss) attributable to Vornado Realty L.P.Net income (loss) attributable to Vornado Realty L.P.69,584 358,075 (112,116)3,139,541 Net income (loss) attributable to Vornado Realty L.P.$66,340 $69,584 $155,267 $(112,116)
Preferred unit distributionsPreferred unit distributions(12,572)(12,574)(37,715)(37,722)Preferred unit distributions(16,842)(12,572)(49,858)(37,715)
Series K preferred unit issuance costsSeries K preferred unit issuance costs(9,033)— (9,033)— 
Net income (loss) attributable to Class A unitholdersNet income (loss) attributable to Class A unitholders57,012 345,501 (149,831)3,101,819 Net income (loss) attributable to Class A unitholders40,465 57,012 96,376 (149,831)
Earnings allocated to unvested participating securitiesEarnings allocated to unvested participating securities(734)(2,449)(4,685)(14,807)Earnings allocated to unvested participating securities(649)(734)(2,034)(4,685)
Numerator for basic income (loss) per Class A unit56,278 343,052 (154,516)3,087,012 
Impact of assumed conversions:
Convertible preferred unit distributions14 43 
Numerator for diluted income (loss) per Class A unit$56,278 $343,066 $(154,516)$3,087,055 
Numerator for basic and diluted income (loss) per Class A unitNumerator for basic and diluted income (loss) per Class A unit$39,816 $56,278 $94,342 $(154,516)
Denominator:Denominator:Denominator:
Denominator for basic income (loss) per Class A unit – weighted average unitsDenominator for basic income (loss) per Class A unit – weighted average units203,554 203,009 203,480 202,903 Denominator for basic income (loss) per Class A unit – weighted average units204,864 203,554 204,663 203,480 
Effect of dilutive securities(1):
Effect of dilutive securities(1):
Effect of dilutive securities(1):
Vornado stock options, Vornado restricted stock awards, OP Units, AO LTIP Units and OPPsVornado stock options, Vornado restricted stock awards, OP Units, AO LTIP Units and OPPs507 478 Vornado stock options, Vornado restricted stock awards, OP Units, AO LTIP Units and OPPs839 — 953 — 
Convertible preferred units34 35 
Denominator for diluted income (loss) per Class A unit – weighted average units and assumed conversionsDenominator for diluted income (loss) per Class A unit – weighted average units and assumed conversions203,554 203,550 203,480 203,416 Denominator for diluted income (loss) per Class A unit – weighted average units and assumed conversions205,703 203,554 205,616 203,480 
INCOME (LOSS) PER CLASS A UNIT - BASIC:INCOME (LOSS) PER CLASS A UNIT - BASIC:INCOME (LOSS) PER CLASS A UNIT - BASIC:
Net income (loss) per Class A unitNet income (loss) per Class A unit$0.28 $1.69 $(0.76)$15.21 Net income (loss) per Class A unit$0.19 $0.28 $0.46 $(0.76)
INCOME (LOSS) PER CLASS A UNIT - DILUTED:INCOME (LOSS) PER CLASS A UNIT - DILUTED:INCOME (LOSS) PER CLASS A UNIT - DILUTED:
Net income (loss) per Class A unitNet income (loss) per Class A unit$0.28 $1.69 $(0.76)$15.18 Net income (loss) per Class A unit$0.19 $0.28 $0.46 $(0.76)
____________________
(1)The effect of dilutive securities excluded an aggregate of 1,767214 and 9051,767 weighted average Class A unit equivalents for the three months ended September 30, 20202021 and 2019,2020, respectively, and 1,629350 and 6781,629 weighted average Class A unit equivalents for the nine months ended September 30, 20202021 and 2019,2020, respectively, as their effect was anti-dilutive.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED
(UNAUDITED)
21.20.    Commitments and Contingencies
Insurance
For our properties except Farley Office and Retail,(except Farley), we maintain general liability insurance with limits of $300,000,000 per occurrence and per property, of which $235,000,000$250,000,000 includes communicable disease coverage, and we maintain all risk property and rental value insurance with limits of $2.0 billion per occurrence, with sub-limits for certain perils such as flood and earthquake.earthquake and effective February 15, 2021, excluding communicable disease coverage. For the period February 15, 2020 through February 14, 2021, we and the insurance carriers for our all risk property policy have disagreements as to the applicability of a $2,300,000 sub-limit for communicable disease coverage across our properties. Our California properties have earthquake insurance with coverage of $350,000,000 per occurrence and in the aggregate, subject to a deductible in the amount of 5% of the value of the affected property. We maintain coverage for certified terrorism acts with limits of $6.0 billion per occurrence and in the aggregate (as listed below), $1.2 billion for non-certified acts of terrorism, and $5.0 billion per occurrence and in the aggregate for terrorism involving nuclear, biological, chemical and radiological (“NBCR”) terrorism events, as defined by the Terrorism Risk Insurance Act of 2002, as amended to date and which has been extended through December 2027.
Penn Plaza Insurance Company, LLC (“PPIC”), our wholly owned consolidated subsidiary, acts as a re-insurer with respect to a portion of all risk property and rental value insurance and a portion of our earthquake insurance coverage, and as a direct insurer for coverage for acts of terrorism including NBCR acts. Coverage for acts of terrorism (excluding NBCR acts) is fully reinsured by third-party insurance companies and the Federal government with no exposure to PPIC. For NBCR acts, PPIC is responsible for a deductible of $1,430,413$1,759,257 and 20% of the balance of a covered loss and the Federal government is responsible for the remaining portion of a covered loss. We are ultimately responsible for any loss incurred by PPIC.
For Farley, Office and Retail, we maintain general liability insurance with limits of $100,000,000 per occurrence, and builder’s risk insurance including coverage for existing property and development activities of $2.8 billion per occurrence and in the aggregate. We maintain coverage for certified and non-certified terrorism acts with limits of $1.0$1.85 billion and $1.17 billion per occurrence, respectively, and in the aggregate.
We continue to monitor the state of the insurance market and the scope and costs of coverage for acts of terrorism and other events. However, we cannot anticipate what coverage will be available on commercially reasonable terms in the future. We are responsible for uninsured losses and for deductibles and losses in excess of our insurance coverage, which could be material.
Our debt instruments, consisting of mortgage loans secured by our properties, senior unsecured notes and revolving credit agreements contain customary covenants requiring us to maintain insurance. Although we believe that we have adequate insurance coverage for purposes of these agreements, we may not be able to obtain an equivalent amount of coverage at reasonable costs in the future. Further, if lenders insist on greater coverage than we are able to obtain it could adversely affect our ability to finance or refinance our properties and expand our portfolio.
Farley Office and Retail
The consolidated joint venture in which we own a 95% ownership interest was designated by Empire State Development ("ESD") to develop Farley Office and Retail. The joint venture entered into a development agreement with ESD and a design-build contract with Skanska Moynihan Train Hall Builders. Under the development agreement with ESD, the joint venture is obligated to build the Moynihan Train Hall, with Vornado and Related each guaranteeing the joint venture’s obligations. Under the design-build agreement, Skanska Moynihan Train Hall Builders is obligated to fulfill all of the joint venture’s obligations. The obligations of Skanska Moynihan Train Hall Builders have been bonded by Skanska USA and bear a full guaranty from Skanska AB.
In connection with the development of the property, the joint venture took in a historic tax credit investor partner. Under the terms of the historic tax credit arrangement, the joint venture is required to comply with various laws, regulations, and contractual provisions. Non-compliance with applicable requirements could result in projected tax benefits not being realized and, therefore, may require a refund or reduction of the Tax Credit Investor’s capital contributions. As of September 30, 2020, the Tax Credit Investor has made $92,400,000 in capital contributions. Vornado and Related have guaranteed certain of the joint venture’s obligations to the Tax Credit Investor.
Other Commitments and Contingencies
We are from time to time involved in legal actions arising in the ordinary course of business. In our opinion, after consultation with legal counsel, the outcome of such matters is not currently expected to have a material adverse effect on our financial position, results of operations or cash flows.
Each of our properties has been subjected to varying degrees of environmental assessment at various times. The environmental assessments did not reveal any material environmental contamination. However, there can be no assurance that the identification of new areas of contamination, changes in the extent or known scope of contamination, the discovery of additional sites, or changes in cleanup requirements would not result in significant costs to us.


44


VORNADO REALTY TRUST AND VORNADO REALTY L.P.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED
(UNAUDITED)
21.    Commitments and Contingencies - continued
Other Commitments and Contingencies - continued
In July 2018, we leased 78,000 square feet at 345 Montgomery Street in San Francisco, CA, to a subsidiary of Regus PLC, for an initial term of 15 years. The obligations under the lease were guaranteed by Regus PLC in an amount of up to $90,000,000. The tenant purported to terminate the lease prior to space delivery. We commenced a suit on October 23, 2019 seeking to enforce the lease and the guarantee.guaranty. On May 11, 2021, the court issued a final statement of decision in our favor and on July 7, 2021, the Regus subsidiary appealed the decision. On October 9, 2020, the successor to Regus PLC filed for bankruptcy in Luxembourg. We are actively pursuing claims relating to the guaranty against the successor to Regus PLC and its parent, in Luxembourg and other jurisdictions.
In November 2011, we entered into an agreement with the New York City Economic Development Corporation ("EDC") to lease Piers 92 and 94 (the "Piers") for a 49-year term with 5 10-year renewal options. The non-recourse lease with a single-purpose entity calls for current annual rent payments of $2,000,000 with fixed rent steps through the initial term. We operate trade shows and special events at the Piers (and sublease to others for the same uses). In February 2019, an inspection revealed that the piles supporting Pier 92 were structurally unsound (an obligation of EDC to maintain) and we were issued an order by EDCfor us to vacate Pier 92 due to structural problems. Beginning March 2020 through August 2021, we did not pay EDC the property. We continuedmonthly rent due under the non-recourse lease due to make the required lease payments through February 2020, with no abatement provided by EDC for the loss of our right to use or occupy Pier 9292. On August 31, 2021, both parties entered into a mutual release with respect to claims by EDC for unpaid rent owed and claims by the Company for costs and damages as a result of our inability to use or reimbursement for lost revenues. Beginning March 2020, as no resolution had been reached with EDC, we have not paid the monthly rents due under the non-recourse lease. As of September 30, 2020, we have a $46,911,000 lease liabilityoccupy Pier 92.


43

VORNADO REALTY TRUST AND VORNADO REALTY L.P.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED
(UNAUDITED)
20.    Commitments and a $34,563,000 right-of-use asset recorded for this lease.Contingencies - continued
Other Commitments and Contingencies - continued
Our mortgage loans are non-recourse to us, except for the mortgage loans secured by 640 Fifth Avenue, 7 West 34th Street and 435 Seventh Avenue, which we guaranteed and therefore are part of our tax basis. In certain cases, we have provided guarantees or master leased tenant space. These guarantees and master leases terminate either upon the satisfaction of specified circumstances or repayment of underlying loans. In addition, we have guaranteed the rent and payments in lieu of real estate taxes due to ESD,Empire State Development, an entity of New York State, for Farley Office and Retail. As of September 30, 2020,2021, the aggregate dollar amount of these guarantees and master leases is approximately $1,745,000,000.$1,653,000,000.
As of September 30, 2020, $14,080,0002021, $13,273,000 of letters of credit were outstanding under one of our unsecured revolving credit facilities. Our unsecured revolving credit facilities contain financial covenants that require us to maintain minimum interest coverage and maximum debt to market capitalization ratios, and provide for higher interest rates in the event of a decline in our ratings below Baa3/BBB. Our unsecured revolving credit facilities also contain customary conditions precedent to borrowing, including representations and warranties, and also contain customary events of default that could give rise to accelerated repayment, including such items as failure to pay interest or principal.
Our 95% consolidated joint venture (5% is owned by Related Companies ("Related")) is developing Farley Office and Retail. In connection with the development of the property, the joint venture took in a historic Tax Credit Investor. Under the terms of the historic tax credit arrangement, the joint venture is required to comply with various laws, regulations, and contractual provisions. Non-compliance with applicable requirements could result in projected tax benefits not being realized and, therefore, may require a refund or reduction of the Tax Credit Investor’s capital contributions. As of September 30, 2021, the Tax Credit Investor has made$92,400,000 in capital contributions. Vornado and Related have guaranteed certain of the joint venture’s obligations to the Tax Credit Investor.
As investment manager of the Fund we are entitled to an incentive allocation after the limited partners have received a preferred return on their invested capital. The incentive allocation is subject to catch-up and clawback provisions. Accordingly, based on the September 30, 20202021 fair value of the Fund assets, at liquidation we would be required to make a $33,900,00028,000,000 payment to the limited partners, net of amounts owed to us, representing a clawback of previously paid incentive allocations, which would have no income statement impact as it was previously accrued.
As of September 30, 2020,2021, we expect to fund additional capital to certain of our partially owned entities aggregating approximately $11,000,000.$10,700,000.
As of September 30, 2020,2021, we have construction commitments aggregating approximately $504,000,000.
45
$384,000,000.


VORNADO REALTY TRUST AND VORNADO REALTY L.P.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED
(UNAUDITED)
22.21.    Segment Information
We operate in 2 reportable segments, New York and Other, which is based on how we manage our business.
Net operating income ("NOI") at share represents total revenues less operating expenses including our share of partially owned entities. NOI at share - cash basis represents NOI at share adjusted to exclude straight-line rental income and expense, amortization of acquired below and above market leases, net and other non-cash adjustments. We consider NOI at share - cash basis to be the primary non-GAAP financial measure for making decisions and assessing the unlevered performance of our segments as it relates to the total return on assets as opposed to the levered return on equity. As properties are bought and sold based on NOI at share - cash basis, we utilize this measure to make investment decisions as well as to compare the performance of our assets to that of our peers. NOI at share and NOI at share - cash basis should not be considered alternatives to net income or cash flow from operations and may not be comparable to similarly titled measures employed by other companies. NOI at share - cash basis includes rent that has been deferred as a result of the COVID-19 pandemic. Rent deferrals generally require repayment in monthly installments over a period of time not to exceed twelve months.
44

VORNADO REALTY TRUST AND VORNADO REALTY L.P.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED
(UNAUDITED)
21.    Segment Information - continued
Below is a reconciliation of net income (loss) to NOI at share and NOI at share - cash basis for the three and nine months ended September 30, 20202021 and 2019.2020.
(Amounts in thousands)(Amounts in thousands)For the Three Months Ended September 30,For the Nine Months Ended September 30,(Amounts in thousands)For the Three Months Ended September 30,For the Nine Months Ended September 30,
20202019202020192021202020212020
Net income (loss)Net income (loss)$68,736 $363,849 $(253,119)$3,173,586 Net income (loss)$71,765 $68,736 $175,590 $(253,119)
Depreciation and amortization expenseDepreciation and amortization expense107,013 96,437 292,611 326,181 Depreciation and amortization expense100,867 107,013 285,998 292,611 
General and administrative expenseGeneral and administrative expense32,407 33,237 120,255 130,129 General and administrative expense25,553 32,407 100,341 120,255 
Expense from transaction related costs and impairment losses and (gain from lease liability extinguishment), net584 1,576 (68,566)103,315 
Loss (income) from partially owned entities80,909 (25,946)353,679 (56,139)
Impairment losses, transaction related costs and other (lease liability extinguishment gain)Impairment losses, transaction related costs and other (lease liability extinguishment gain)9,681 584 10,630 (68,566)
(Income) loss from partially owned entities(Income) loss from partially owned entities(26,269)80,909 (86,768)353,679 
Loss (income) from real estate fund investmentsLoss (income) from real estate fund investments13,823 (2,190)225,328 13,780 Loss (income) from real estate fund investments66 13,823 (5,107)225,328 
Interest and other investment (income) loss, netInterest and other investment (income) loss, net(1,729)(3,045)7,068 (15,930)Interest and other investment (income) loss, net(633)(1,729)(3,694)7,068 
Interest and debt expenseInterest and debt expense57,371 61,448 174,618 226,940 Interest and debt expense50,946 57,371 152,904 174,618 
Net gain on transfer to Fifth Avenue and Times Square JV(2,571,099)
Net gains on disposition of wholly owned and partially owned assetsNet gains on disposition of wholly owned and partially owned assets(214,578)(309,657)(338,862)(641,664)Net gains on disposition of wholly owned and partially owned assets(10,087)(214,578)(35,811)(338,862)
Income tax expense23,781 23,885 38,431 80,542 
Loss from discontinued operations85 
Income tax (benefit) expenseIncome tax (benefit) expense(25,376)23,781 (20,551)38,431 
NOI from partially owned entitiesNOI from partially owned entities78,175 86,024 229,543 236,400 NOI from partially owned entities75,644 78,175 231,635 229,543 
NOI attributable to noncontrolling interests in consolidated subsidiariesNOI attributable to noncontrolling interests in consolidated subsidiaries(25,959)(18,096)(56,900)(51,915)NOI attributable to noncontrolling interests in consolidated subsidiaries(16,886)(25,959)(50,221)(56,900)
NOI at shareNOI at share220,533 307,530 724,086 954,211 NOI at share255,271 220,533 754,946 724,086 
Non cash adjustments for straight-line rents, amortization of acquired below-market leases, net and other10,981 (4,037)48,247 530 
Non-cash adjustments for straight-line rents, amortization of acquired below-market leases, net and otherNon-cash adjustments for straight-line rents, amortization of acquired below-market leases, net and other1,922 10,981 1,570 48,247 
NOI at share - cash basisNOI at share - cash basis$231,514 $303,493 $772,333 $954,741 NOI at share - cash basis$257,193 $231,514 $756,516 $772,333 



46


VORNADO REALTY TRUST AND VORNADO REALTY L.P.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED
(UNAUDITED)
22.    Segment Information - continued
Below is a summary of NOI at share and NOI at share - cash basis by segment for the three and nine months ended September 30, 20202021 and 2019.2020.
(Amounts in thousands)For the Three Months Ended September 30, 2021
TotalNew YorkOther
Total revenues$409,212 $316,643 $92,569 
Operating expenses(212,699)(151,276)(61,423)
NOI - consolidated196,513 165,367 31,146 
Deduct: NOI attributable to noncontrolling interests in consolidated subsidiaries(16,886)(9,747)(7,139)
Add: NOI from partially owned entities75,644 73,219 2,425 
NOI at share255,271 228,839 26,432 
Non-cash adjustments for straight-line rents, amortization of acquired below-market leases, net, and other1,922 783 1,139 
NOI at share - cash basis$257,193 $229,622 $27,571 
(Amounts in thousands)For the Three Months Ended September 30, 2020
TotalNew YorkOther
Total revenues$363,962 $293,145 $70,817 
Operating expenses(195,645)(161,386)(34,259)
NOI - consolidated168,317 131,759 36,558 
Deduct: NOI attributable to noncontrolling interests in consolidated subsidiaries(25,959)(17,776)(8,183)
Add: NOI from partially owned entities78,175 75,837 2,338 
NOI at share220,533 189,820 30,713 
Non-cash adjustments for straight-line rents, amortization of acquired below-market leases, net, and other10,981 6,261 4,720 
NOI at share - cash basis$231,514 $196,081 $35,433 
(Amounts in thousands)For the Three Months Ended September 30, 2019
TotalNew YorkOther
Total revenues$465,961 $380,568 $85,393 
Operating expenses(226,359)(188,159)(38,200)
NOI - consolidated239,602 192,409 47,193 
Deduct: NOI attributable to noncontrolling interests in consolidated subsidiaries(18,096)(9,574)(8,522)
Add: NOI from partially owned entities86,024 82,649 3,375 
NOI at share307,530 265,484 42,046 
Non-cash adjustments for straight-line rents, amortization of acquired below-market leases, net, and other(4,037)(5,560)1,523 
NOI at share - cash basis$303,493 $259,924 $43,569 



45

VORNADO REALTY TRUST AND VORNADO REALTY L.P.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED
(UNAUDITED)
21.    Segment Information - continued
(Amounts in thousands)For the Nine Months Ended September 30, 2021
TotalNew YorkOther
Total revenues$1,168,130 $921,758 $246,372 
Operating expenses(594,598)(468,294)(126,304)
NOI - consolidated573,532 453,464 120,068 
Deduct: NOI attributable to noncontrolling interests in consolidated subsidiaries(50,221)(26,841)(23,380)
Add: NOI from partially owned entities231,635 224,392 7,243 
NOI at share754,946 651,015 103,931 
Non-cash adjustments for straight-line rents, amortization of acquired below-market leases, net, and other1,570 351 1,219 
NOI at share - cash basis$756,516 $651,366 $105,150 
(Amounts in thousands)For the Nine Months Ended September 30, 2020
TotalNew YorkOther
Total revenues$1,151,520 $919,388 $232,132 
Operating expenses(600,077)(484,624)(115,453)
NOI - consolidated551,443 434,764 116,679 
Deduct: NOI attributable to noncontrolling interests in consolidated subsidiaries(56,900)(34,713)(22,187)
Add: NOI from partially owned entities229,543 221,296 8,247 
NOI at share724,086 621,347 102,739 
Non-cash adjustments for straight-line rents, amortization of acquired below-market leases, net, and other48,247 40,310 7,937 
NOI at share - cash basis$772,333 $661,657 $110,676 
(Amounts in thousands)For the Nine Months Ended September 30, 2019
TotalNew YorkOther
Total revenues$1,463,732 $1,200,234 $263,498 
Operating expenses(694,006)(574,073)(119,933)
NOI - consolidated769,726 626,161 143,565 
Deduct: NOI attributable to noncontrolling interests in consolidated subsidiaries(51,915)(31,011)(20,904)
Add: NOI from partially owned entities236,400 211,394 25,006 
NOI at share954,211 806,544 147,667 
Non-cash adjustments for straight-line rents, amortization of acquired below-market leases, net, and other530 (3,741)4,271 
NOI at share - cash basis$954,741 $802,803 $151,938 
4746




REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Shareholders and the Board of Trustees of Vornado Realty Trust

Results of Review of Interim Financial Information

We have reviewed the accompanying consolidated balance sheet of Vornado Realty Trust and subsidiaries (the "Company") as of September 30, 2020,2021, the related consolidated statements of income, comprehensive income, and changes in equity for the three-month and nine-month periods ended September 30, 20202021 and 2019,2020, and of cash flows for the nine-month periods ended September 30, 20202021 and 2019,2020, and the related notes (collectively referred to as the "interim financial information"). Based on our reviews, we are not aware of any material modifications that should be made to the accompanying interim financial information for it to be in conformity with accounting principles generally accepted in the United States of America.

We have previously audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated balance sheet of the Company as of December 31, 2019,2020, and the related consolidated statements of income, comprehensive income, changes in equity, and cash flows for the year then ended (not presented herein); and in our report dated February 18, 2020,16, 2021, we expressed an unqualified opinion on those consolidated financial statements. In our opinion, the information set forth in the accompanying consolidated balance sheet as of December 31, 2019,2020, is fairly stated, in all material respects, in relation to the consolidated balance sheet from which it has been derived.

Basis for Review Results

This interim financial information is the responsibility of the Company's management. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our reviews in accordance with standards of the PCAOB. A review of interim financial information consists principally of applying analytical procedures and making inquiries of persons responsible for financial and accounting matters. It is substantially less in scope than an audit conducted in accordance with the standards of the PCAOB, the objective of which is the expression of an opinion regarding the financial statements taken as a whole. Accordingly, we do not express such an opinion.

/s/ DELOITTE & TOUCHE LLP

New York, New York
November 2, 2020

















1, 2021
4847




REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Partners of Vornado Realty L.P.

Results of Review of Interim Financial Information

We have reviewed the accompanying consolidated balance sheet of Vornado Realty L.P. and subsidiaries (the "Partnership") as of September 30, 2020,2021, the related consolidated statements of income, comprehensive income, and changes in equity for the three-month and nine-month periods ended September 30, 20202021 and 2019,2020, and of cash flows for the nine-month periods ended September 30, 20202021 and 2019,2020, and the related notes (collectively referred to as the "interim financial information"). Based on our reviews, we are not aware of any material modifications that should be made to the accompanying interim financial information for it to be in conformity with accounting principles generally accepted in the United States of America.

We have previously audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated balance sheet of the Partnership as of December 31, 2019,2020, and the related consolidated statements of income, comprehensive income, changes in equity, and cash flows for the year then ended (not presented herein); and in our report dated February 18, 2020,16, 2021, we expressed an unqualified opinion on those consolidated financial statements. In our opinion, the information set forth in the accompanying consolidated balance sheet as of December 31, 2019,2020, is fairly stated, in all material respects, in relation to the consolidated balance sheet from which it has been derived.

Basis for Review Results

This interim financial information is the responsibility of the Partnership’s management. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Partnership in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our reviews in accordance with standards of the PCAOB. A review of interim financial information consists principally of applying analytical procedures and making inquiries of persons responsible for financial and accounting matters. It is substantially less in scope than an audit conducted in accordance with the standards of the PCAOB, the objective of which is the expression of an opinion regarding the financial statements taken as a whole. Accordingly, we do not express such an opinion.

/s/ DELOITTE & TOUCHE LLP

New York, New York
November 2, 2020









1, 2021
4948


Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations
Certain statements contained in this Quarterly Report constitute forward-looking statements as such term is defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements are not guarantees of performance. They represent our intentions, plans, expectations and beliefs and are subject to numerous assumptions, risks and uncertainties. Our future results, financial condition and business may differ materially from those expressed in these forward-looking statements. You can find many of these statements by looking for words such as “approximates,” “believes,” “expects,” “anticipates,” “estimates,” “intends,” “plans,” “would,” “may” or other similar expressions in this Quarterly Report on Form 10‑Q. We also note the following forward-looking statements: in the case of our development and redevelopment projects, the estimated completion date, estimated project cost and cost to complete; and estimates of future capital expenditures, dividends to common and preferred shareholders and operating partnership distributions. Many of the factors that will determine the outcome of these and our other forward-looking statements are beyond our ability to control or predict.
Currently, one of the most significant factors is the ongoing adverse effect of the COVID-19 pandemic on our business, financial condition, results of operations, cash flows, operating performance and the effect it has had and may continue to have on our tenants, the global, national, regional and local economies and financial markets and the real estate market in general. The extent of the impact of the COVID-19 pandemic will depend on future developments, including the duration of the pandemic, current and future variants, the efficacy and durability of vaccines against the variants and the potential for increased government restrictions, which are highlycontinue to be uncertain at this time but that impact could be material. Moreover, you are cautioned that the COVID-19 pandemic will heighten many of the risks identified in "Item 1A. Risk Factors" in Part I of our Annual Report on Form 10-K for the year ended December 31, 2019, as well as the risks set forth herein.2020.
For further discussion of factors that could materially affect the outcome of our forward-looking statements, see “Item 1A. Risk Factors” in Part I of our Annual Report on Form 10-K for the year ended December 31, 2019, and "Item 1A. Risk Factors" in Part II of this Quarterly Report on Form 10-Q.2020. For these statements, we claim the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. You are cautioned not to place undue reliance on our forward-looking statements, which speak only as of the date of this Quarterly Report on Form 10-Q or the date of any document incorporated by reference. All subsequent written and oral forward-looking statements attributable to us or any person acting on our behalf are expressly qualified in their entirety by the cautionary statements contained or referred to in this section. We do not undertake any obligation to release publicly any revisions to our forward-looking statements to reflect events or circumstances occurring after the date of this Quarterly Report on Form 10-Q.
Management’s Discussion and Analysis of Financial Condition and Results of Operations includes a discussion of our consolidated financial statements for the three and nine months ended September 30, 2020.2021. The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates. The results of operations for the three and nine months ended September 30, 20202021 are not necessarily indicative of the operating results for the full year. Certain prior year balances have been reclassified in order to conform to the current year presentation.
5049



Overview
Vornado Realty Trust (“Vornado”) is a fully-integrated real estate investment trust (“REIT”) and conducts its business through, and substantially all of its interests in properties are held by, Vornado Realty L.P., a Delaware limited partnership (the “Operating Partnership”). Vornado is the sole general partner of, and owned approximately 92.7%92.6% of the common limited partnership interest in the Operating Partnership as of September 30, 2020.2021. All references to the “Company,” “we,” “us” and “our” mean, collectively, Vornado, the Operating Partnership and those subsidiaries consolidated by Vornado.
We compete with a large number of real estate investors, property owners and developers, some of which may be willing to accept lower returns on their investments. Principal factors of competition are rents charged, sales prices, attractiveness of location, the quality of the property and the breadth and the quality of services provided. Our success depends upon, among other factors, trends of the global, national, regional and local economies, the financial condition and operating results of current and prospective tenants and customers, availability and cost of capital, construction and renovation costs, taxes, governmental regulations, legislation, population and employment trends. See “Risk Factors” in Part I, Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2019 and "Risk Factors" in Part II, Item 1A of this Quarterly Report on Form 10-Q2020 for additional information regarding these factors.
Our business has been adversely affected as a result of the COVID-19 pandemic and the preventive measures taken to curb the spread of the virus. Some of the effects on us include the following:
With the exception of grocery stores and other "essential" businesses, many of our retail tenants closed their stores in March 2020 and began reopening when New York City entered phase two of its state-mandated reopening plan on June 22, 2020.2020, which required limitations on occupancy and other restrictions that affected their ability to resume full operations. On June 15, 2021, New York State lifted the limitations and restrictions, however, economic conditions and other factors, including limitations on international travel, continue to adversely affect the financial health of our retail tenants.
While our buildings remainare open, many of our office tenants are working remotely.
We havetemporarily closed the Hotel Pennsylvania. In connection withPennsylvania on April 1, 2020 and on April 5, 2021, we permanently closed the closure, we accrued $9,246,000 of severance for furloughed Hotel Pennsylvania union employees and recognized a corresponding $3,145,000 income tax benefit for the three and nine months ended September 30, 2020.hotel.
We have cancelled trade shows at theMART for the remainderbeginning late March of 2020.
Because certain of our development projects were deemed "non-essential," they were temporarily paused in March 2020 due to New York State executive orders and resumed once New York City entered phase onetrade showsin the third quarter of its state mandated reopening plan on June 8, 2020.2021.
As of April 30, 2020, we placed1,803 employees on furlough, which includedOctober 31, 2021, approximately 78% of the 1,293 employees of Building Maintenance Services LLC ("BMS"), a wholly owned subsidiary, which provides cleaning, security and engineering services primarily to our New York properties, 414 employees at the Hotel Pennsylvania and 96 corporate staff employees. As of October 31,that had been placed on furlough in 2020 40% of the furloughed employees have returned to work.
Effective April 1, 2020, our executive officers waived portions of their annual base salary for the remainder of 2020.
Effective April 1, 2020, each non-management member of our Board of Trustees agreed to forgo their $75,000 annual cash retainer for the remainder of 2020.
While we believe our tenants are required to pay rent under their leases, in limited circumstances, we have agreed to and may continue to agree to rent deferrals and rent abatements for certain of our tenants. We have made a policy election in accordance with the Financial Accounting Standards Board (“FASB”) Staff Q&A which provides relief in accounting for leases during the COVID-19 pandemic, allowing us to continue recognizing rental revenue on a straight-line basis for rent deferrals, with no impact to revenue recognition, and to recognize rent abatements as a reduction to rental revenue in the period granted.
For the quarter ended September 30, 2020, we collected 93% (95% including rent deferrals) of rent due from our tenants, comprised of 95% (97% including rent deferrals) from our office tenants and 82% (85% including rent deferrals) from our retail tenants. Rent deferrals generally require repayment in monthly installments over a period not to exceed twelve months.

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Overview - continued
Based on our assessment of the probability of rent collection of our lease receivables, we have written off $13,873,000 and $50,170,000 of receivables arising from the straight-lining of rents for the three and nine months ended September 30, 2020, respectively, including the JCPenney retail lease at Manhattan Mall and the New York & Company, Inc. office lease at 330 West 34th Street. Both tenants have filed for Chapter 11 bankruptcy. In addition, we have written off $12,364,000 and $21,186,000 of tenant receivables deemed uncollectible for the three and nine months ended September 30, 2020, respectively. These write-offs resulted in a reduction of lease revenues and our share of income from partially owned entities. Prospectively, revenue recognition for these tenants will be based on actual amounts received.
We have not experienced any material impact to our internal control over financial reporting to date as a result of most of our employees working remotely due to the COVID-19 pandemic. We are continually monitoring and assessing the COVID-19 situation on our internal controls to minimize the impact to their design and operating effectiveness.
In light of the evolving health, social, economic, and business environment, governmental regulation or mandates, and business disruptions that have occurred and may continue to occur, the impact of the COVID-19 pandemic on our financial condition and operating results remains highly uncertain but thethat impact couldhas been and may continue to be material. The impact on us includes lower rental income and potentially lower occupancy levels at our properties which will result in less cash flow available for operating costs, to pay our indebtedness and for distribution to our shareholders.During 2020, weshareholders and unitholders. We have experienced a decrease in cash flow from operations due to the COVID-19 pandemic, including reduced collections of rents billed to certain of our tenants, the closure of Hotel Pennsylvania, the cancellation of trade shows at theMART, through 2020, and lower revenues from BMS, parking garages and signage. In addition, we have concluded that our investment in Fifth Avenue and Times Square JV is "other-than-temporarily" impaired and recorded non-cash impairment losses, net of noncontrolling interests, of $103,201,000 and $409,060,000, respectively, during the three and nine months ended September 30, 2020. The impairment losses are included in “(loss) income from partially owned entities” on our consolidated statements of income. The value of our real estate assets may continue to decline, which may result in additional non-cash impairment charges in future periods and that impact could be material.

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Vornado Realty Trust
Quarter Ended September 30, 20202021 Financial Results Summary
Net income attributable to common shareholders for the quarter ended September 30, 20202021 was $53,170,000,$37,689,000, or $0.28$0.20 per diluted share, compared to $322,906,000,$53,170,000, or $1.69$0.28 per diluted share, for the prior year’s quarter. The quarters ended September 30, 20202021 and 20192020 include certain items that impact the comparability of period to period net income attributable to common shareholders, which are listed in the table on the following page. The aggregate of these items, net of amounts attributable to noncontrolling interests, increased net income attributable to common shareholders for the quarter ended September 30, 20202021 by $69,783,000,$11,763,000, or $0.37$0.06 per diluted share, and $270,282,000,$62,556,000, or $1.41$0.33 per diluted share, for the quarter ended September 30, 2019.2020.
Funds From Operations (“FFO”) attributable to common shareholders plus assumed conversions for the quarter ended September 30, 20202021 was $278,507,000,$158,286,000, or $1.46$0.82 per diluted share, compared to $279,509,000,$278,507,000, or $1.46 per diluted share, for the prior year’s quarter. FFO attributable to common shareholders plus assumed conversions for the quarters ended September 30, 20202021 and 20192020 include certain items that impact the comparability of period to period FFO, which are listed in the table on the following page. The aggregate of these items, net of amounts attributable to noncontrolling interests, increased FFO attributable to common shareholders plus assumed conversions for the quarter ended September 30, 20202021 by $165,912,000,$22,073,000, or $0.87$0.11 per diluted share, and $108,543,000,$161,809,000, or $0.57$0.85 per diluted share, for the quarter ended September 30, 2019.2020.
Nine Months Ended September 30, 20202021 Financial Results Summary
Net lossincome attributable to common shareholders for the nine months ended September 30, 20202021 was $139,617,000,$89,817,000, or $0.73$0.47 per diluted share, compared to net incomeloss attributable to common shareholders of $2,904,589,000,$139,617,000, or $15.20$0.73 per diluted share, for the nine months ended September 30, 2019.2020. The nine months ended September 30, 20202021 and 20192020 include certain items that impact the comparability of period to period net income (loss) income attributable to common shareholders, which are listed in the table on the following page. The aggregate of these items, net of amounts attributable to noncontrolling interests, increased net lossincome attributable to common shareholders for the nine months ended September 30, 20202021 by $133,094,000,$24,641,000, or $0.70$0.13 per diluted share, and increased net incomeloss attributable to common shareholders by $2,784,217,000,$157,815,000, or $14.57$0.83 per diluted share, for the nine months ended September 30, 2019.2020.
FFO attributable to common shareholders plus assumed conversions for the nine months ended September 30, 20202021 was $612,123,000,$430,057,000, or $3.20$2.24 per diluted share, compared to $691,522,000,$612,123,000, or $3.62$3.20 per diluted share, for the nine months ended September 30, 2019.2020. FFO attributable to common shareholders plus assumed conversions for the nine months ended September 30, 20202021 and 20192020 include certain items that impact the comparability of period to period FFO, which are listed in the table on the following page. The aggregate of these items, net of amounts attributable to noncontrolling interests, increased FFO attributable to common shareholders plus assumed conversions for the nine months ended September 30, 20202021 by $256,058,000,$36,324,000, or $1.34$0.19 per diluted share, and $196,586,000,$241,205,000, or $1.03$1.26 per diluted share for the nine months ended September 30, 2019.2020.
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The following table reconciles the difference between our net income (loss) attributable to common shareholders and our net income (loss) income attributable to common shareholders, as adjusted:
(Amounts in thousands)For the Three Months Ended
September 30,
For the Nine Months Ended
September 30,
 2020201920202019
Certain (income) expense items that impact net income (loss) attributable to common shareholders:
After-tax net gain on sale of 220 Central Park South ("220 CPS") condominium units$(186,909)$(109,035)$(295,825)$(328,910)
Non-cash impairment loss on our investment in Fifth Avenue and Times Square JV, net of $3,822 and $4,289 attributable to noncontrolling interests103,201 — 409,060 — 
Severance accrual related to Hotel Pennsylvania closure, net of $3,145 of income tax benefit6,101 — 6,101 — 
Our share of loss (income) from real estate fund investments2,524 (1,455)64,771 22,207 
Net gains on sale of real estate (primarily our 25% interest in 330 Madison Avenue in 2019)— (178,769)— (178,769)
Mark-to-market decrease in Pennsylvania Real Estate Investment Trust ("PREIT") common shares (accounted for as a marketable security from March 12, 2019 and sold on January 23, 2020)— 4,875 4,938 19,211 
608 Fifth Avenue non-cash (lease liability extinguishment gain) impairment loss and related write-offs— — (70,260)101,092 
Credit losses on loans receivable resulting from a new GAAP accounting standard effective January 1, 2020— — 13,369 — 
Net gain on transfer to Fifth Avenue and Times Square retail JV, net of $11,945 attributable to noncontrolling interests— — — (2,559,154)
Net gain from sale of Urban Edge Properties ("UE") common shares (sold on March 4, 2019)— — — (62,395)
Prepayment penalty in connection with redemption of $400 million 5.00% senior unsecured notes due January 2022— — — 22,540 
Mark-to-market increase in Lexington Realty Trust ("Lexington") common shares (sold on March 1, 2019)— — — (16,068)
Real estate impairment losses— — — 7,500 
Other766 (4,811)10,681 (857)
(74,317)(289,195)142,835 (2,973,603)
Noncontrolling interests' share of above adjustments4,534 18,913 (9,741)189,386 
Total of certain (income) expense items that impact net income (loss) attributable to common shareholders$(69,783)$(270,282)$133,094 $(2,784,217)
(Amounts in thousands)For the Three Months Ended September 30,For the Nine Months Ended
September 30,
 2021202020212020
Certain (income) expense items that impact net income (loss) attributable to common shareholders:
Tax benefit recognized by our taxable REIT subsidiaries$(27,910)$— $(27,910)$— 
Previously capitalized Series K preferred share issuance costs9,033 — 9,033 — 
After-tax net gain on sale of 220 Central Park South ("220 CPS") condominium unit(s)(8,815)(186,909)(31,023)(295,825)
Real estate impairment losses in connection with the sales of Madison Avenue retail properties7,880 — 7,880 — 
Hotel Pennsylvania loss (permanently closed on April 5, 2021)6,492 7,706 20,474 25,232 
Our share of (income) loss from real estate fund investments(294)2,524 (2,193)64,771 
Non-cash impairment loss on our investment in Fifth Avenue and Times Square JV, net of $3,822 and $4,289 attributable to noncontrolling interests— 103,201 — 409,060 
Severance accrual related to Hotel Pennsylvania closure, net of $3,145 of income tax benefit— 6,101 — 6,101 
608 Fifth Avenue non-cash lease liability extinguishment gain— — — (70,260)
Credit losses on loans receivable resulting from a new GAAP accounting standard effective January 1, 2020— — — 13,369 
Mark-to-market decrease in Pennsylvania Real Estate Investment Trust common shares (sold on January 23, 2020)— — — 4,938 
Other733 766 (2,942)10,681 
(12,881)(66,611)(26,681)168,067 
Noncontrolling interests' share of above adjustments1,118 4,055 2,040 (10,252)
Total of certain (income) expense items that impact net income (loss) attributable to common shareholders$(11,763)$(62,556)$(24,641)$157,815 
The following table reconciles the difference between our FFO attributable to common shareholders plus assumed conversions and our FFO attributable to common shareholders plus assumed conversions, as adjusted:
(Amounts in thousands)(Amounts in thousands)For the Three Months Ended
September 30,
For the Nine Months Ended
September 30,
(Amounts in thousands)For the Three Months Ended September 30,For the Nine Months Ended
September 30,
2020201920202019 2021202020212020
Certain (income) expense items that impact FFO attributable to common shareholders plus assumed conversions:Certain (income) expense items that impact FFO attributable to common shareholders plus assumed conversions:Certain (income) expense items that impact FFO attributable to common shareholders plus assumed conversions:
After-tax net gain on sale of 220 CPS condominium units$(186,909)$(109,035)$(295,825)$(328,910)
Tax benefit recognized by our taxable REIT subsidiariesTax benefit recognized by our taxable REIT subsidiaries$(27,910)$— $(27,910)$— 
Previously capitalized Series K preferred share issuance costsPreviously capitalized Series K preferred share issuance costs9,033 — 9,033 — 
After-tax net gain on sale of 220 CPS condominium unit(s)After-tax net gain on sale of 220 CPS condominium unit(s)(8,815)(186,909)(31,023)(295,825)
Hotel Pennsylvania loss (permanently closed on April 5, 2021)Hotel Pennsylvania loss (permanently closed on April 5, 2021)3,892 5,127 12,331 17,431 
Our share of (income) loss from real estate fund investmentsOur share of (income) loss from real estate fund investments(294)2,524 (2,193)64,771 
Severance accrual related to Hotel Pennsylvania closure, net of $3,145 of income tax benefitSeverance accrual related to Hotel Pennsylvania closure, net of $3,145 of income tax benefit6,101 — 6,101 — Severance accrual related to Hotel Pennsylvania closure, net of $3,145 of income tax benefit— 6,101 — 6,101 
Our share of loss (income) from real estate fund investments2,524 (1,455)64,771 22,207 
608 Fifth Avenue non-cash (lease liability extinguishment gain) impairment loss and related write-offs— — (70,260)77,156 
608 Fifth Avenue non-cash lease liability extinguishment gain608 Fifth Avenue non-cash lease liability extinguishment gain— — — (70,260)
Credit losses on loans receivable resulting from a new GAAP accounting standard effective January 1, 2020Credit losses on loans receivable resulting from a new GAAP accounting standard effective January 1, 2020— — 13,369 — Credit losses on loans receivable resulting from a new GAAP accounting standard effective January 1, 2020— — — 13,369 
Prepayment penalty in connection with redemption of $400 million 5.00% senior unsecured notes due January 2022— — — 22,540 
OtherOther381 (5,229)7,045 (2,931)Other451 381 1,215 7,045 
(177,903)(115,719)(274,799)(209,938)(23,643)(172,776)(38,547)(257,368)
Noncontrolling interests' share of above adjustmentsNoncontrolling interests' share of above adjustments11,991 7,176 18,741 13,352 Noncontrolling interests' share of above adjustments1,570 10,967 2,223 16,163 
Total of certain (income) expense items that impact FFO attributable to common shareholders plus assumed conversions, netTotal of certain (income) expense items that impact FFO attributable to common shareholders plus assumed conversions, net$(165,912)$(108,543)$(256,058)$(196,586)Total of certain (income) expense items that impact FFO attributable to common shareholders plus assumed conversions, net$(22,073)$(161,809)$(36,324)$(241,205)
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Vornado Realty Trust and Vornado Realty L.P.
Same Store Net Operating Income (“NOI”) At Share
The percentage increase (decrease) increase in same store NOI at share and same store NOI at share - cash basis of our New York segment, theMART and 555 California Street are summarized below.
TotalNew YorktheMART555 California Street
Same store NOI at share % (decrease) increase:
Three months ended September 30, 2020 compared to September 30, 2019(16.4)%(14.5)%(46.3)%2.0 %
Nine months ended September 30, 2020 compared to September 30, 2019(14.7)%(13.4)%(34.9)%0.7 %
Three months ended September 30, 2020 compared to June 30, 20207.1 %10.5 %(26.6)%6.2 %
Same store NOI at share - cash basis % (decrease) increase:
Three months ended September 30, 2020 compared to September 30, 2019(10.6)%(9.0)%(31.7)%1.3 %
Nine months ended September 30, 2020 compared to September 30, 2019(7.7)%(5.4)%(30.5)%0.2 %
Three months ended September 30, 2020 compared to June 30, 2020(3.0)%(3.6)%(1.1)%3.4 %
TotalNew York
theMART(1)
555 California Street
Same store NOI at share % increase (decrease):
Three months ended September 30, 2021 compared to September 30, 20204.1 %7.8 %(50.8)%3.0 %
Nine months ended September 30, 2021 compared to September 30, 20201.9 %3.2 %(16.9)%5.4 %
Same store NOI at share - cash basis % increase (decrease):
Three months ended September 30, 2021 compared to September 30, 20202.8 %8.1 %(50.9)%(5.0)%
Nine months ended September 30, 2021 compared to September 30, 2020(1.1)%0.6 %(20.4)%(0.7)%
___________________
(1)The three and nine months ended September 30, 2021 include increases in real estate tax expense of $12,518,000 and $14,441,000, respectively, primarily due to a recent increase in the triennial tax-assessed value of theMART.
Calculations of same store NOI at share, reconciliations of our net income (loss) to NOI at share, NOI at share - cash basis and FFO and the reasons we consider these non-GAAP financial measures useful are provided in the following pages of Management’s Discussion and Analysis of Financial Condition and Results of Operations.
DispositionsAcquisition
    PREITOne Park Avenue
On January 23, 2020,August 5, 2021, pursuant to a right of first offer, we sold allincreased our ownership interest in One Park Avenue, a 943,000 square foot Manhattan office building, to 100.0% by acquiring our joint venture partner's 45.0% ownership interest in the property. The purchase price values the property at $875,000,000. We paid approximately $158,000,000 in cash and assumed our joint venture partner's share of the $525,000,000 mortgage loan. We previously accounted for our 6,250,000 common sharesinvestment under the equity method and have consolidated the accounts of PREIT, realizing net proceedsthe property from the date of $28,375,000. We recorded a $4,938,000 loss (mark-to-market decrease) foracquisition of the nine months ended September 30, 2020.additional 45% ownership interest.
Dispositions
220 CPS
During the three months ended September 30, 2020,2021, we closed on the sale of 19one condominium unit at 220 CPS for net proceeds of $25,467,000 resulting in a net gain of $10,087,000 which is included in "net gains on disposition of wholly owned and partially owned assets" on our consolidated statements of income. In connection with this sale, $1,272,000 of income tax expense was recognized on our consolidated statements of income. During the nine months ended September 30, 2021, we closed on the sale of four condominium units at 220 CPS for net proceeds of $591,104,000$97,683,000 resulting in a financial statement net gain of $214,578,000$35,359,000 which is included in "net gains on disposition of wholly owned and partially owned assets" on our consolidated statements of income. In connection with these sales, $27,669,000 of income tax expense was recognized on our consolidated statements of income. During the nine months ended September 30, 2020, we closed on the sale of 30 condominium units at 220 CPS for net proceeds of $939,292,000 resulting in a financial statement net gain of $338,862,000. In connection with these sales, $43,037,000$4,336,000 of income tax expense was recognized on our consolidated statements of income. From inception to September 30, 2020,2021, we have closed on the sale of 95104 units for net proceeds of $2,759,424,000$2,967,175,000 resulting in financial statement net gains of $1,024,479,000.$1,102,296,000.
Alexander's, Inc. (Alexander's)

On June 4, 2021, Alexander's completed the sale of a parcel of land in the Bronx, New York for $10,000,000. As a result of the sale, we recognized our $2,956,000 share of the net gain and also received a $300,000 sales commission paid by Alexander's
.
On October 4, 2021, Alexander's sold its Paramus, New Jersey property to IKEA Property, Inc. ("IKEA"), the tenant at the property, for $75,000,000 pursuant to IKEA's purchase option contained in the lease. The property was encumbered by a $68,000,000 mortgage loan which was repaid at closing of the sale. As a result of the sale, we will recognize in the fourth quarter of 2021 our approximate $11,600,000 share of the net gain and a $750,000 sales commission paid by Alexander's to Vornado.
Alexander's announced that it does not expect to pay a special dividend related to these transactions.
SoHo Properties
On May 10, 2021, we entered into an agreement to sell two Manhattan retail properties located at 478-482 Broadway and 155 Spring Street for $84,500,000. We expect to close the sale in the first quarter of 2022 and recognize a net gain of approximately $1,500,000.
Madison Avenue
On September 24, 2021, we sold three Manhattan retail properties located at 677-679, 759-771 and 828-850 Madison Avenue in two separate sale transactions for an aggregate sales price of $100,000,000. Net proceeds from the sales were $96,503,000. In connection with the sales, we recorded $7,880,000 of non-cash impairment losses which are included in "(impairment losses, transaction related costs and other) lease liability extinguishment gain" on our consolidated statements of income for the three and nine months ended September 30, 2021.
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Financings
One Park Avenue
On February 28, 2020, we increased our unsecured term26, 2021, the joint venture completed a $525,000,000 refinancing of One Park Avenue. The interest-only loan balance to $800,000,000 (from $750,000,000) by exercising an accordion feature. Pursuant to an existing swap agreement, $750,000,000 of the loan bears interest at a fixed rate of 3.87% through October 2023, and the balance of $50,000,000 floats at a rate of LIBOR plus 1.00% (1.15%1.11% (1.19% as of September 30, 2020).2021) and matures in March 2023, with three one-year extension options. We realized our $105,000,000 share of net proceeds. The entire $800,000,000 will float thereafter forloan replaced the duration of theprevious $300,000,000 loan through February 2024.that bore interest at LIBOR plus 1.75% and was scheduled to mature in March 2021.
PENN 11
On August 12, 2020,March 7, 2021, we amended the $700,000,000entered into an interest rate swap agreement for our $500,000,000 PENN 11 mortgage loan to swap the interest rate on 770 Broadway, a 1.2 million square foot Manhattan office building, to extend the term one year through March 2022.
On September 14, 2020, Alexander's, Inc. (NYSE: ALX) ("Alexander's"), in which we have a 32.4% ownership interest, amended and extended the $350,000,000 mortgage loan on the retail condominium of 731 Lexington Avenue. Under the terms of the agreement, Alexander's paid down the loan by $50,000,000 to $300,000,000, extended the maturity date to August 2025 and guaranteed the interest payments and certain leasing costs. The principal of the loan is non-recourse to Alexander's. The interest-only loan remains at the same rate,from LIBOR plus 1.40% (1.56%2.75% (2.83% as of September 30, 2020).2021) to a fixed rate of 3.03% through March 2024.
909Third Avenue
On October 15, 2020,March 26, 2021, we completed a $500,000,000$350,000,000 refinancing of PENN11,909 Third Avenue, a 1.21.4 million square foot Manhattan office building. The interest-only loan carriesbears a fixed rate of LIBOR plus 2.75% (currently 2.90%)3.23% and matures in October 2023, with two one-year extension options.April 2031. The loan replacesreplaced the previous $450,000,000$350,000,000 loan that bore interest at a fixed rate of 3.95%3.91% and was scheduled to mature in December 2020.May 2021.
Unsecured Revolving Credit Facility
On April 15, 2021, we extended our $1.25 billion unsecured revolving credit facilityfrom January 2023 (as fully extended) to April 2026 (as fully extended). The interest rate on the extended facility was lowered to LIBOR plus 0.90% from LIBOR plus 1.00%. We subsequently qualified for a sustainability margin adjustment by achieving certain KPI metrics, which reduced our interest rate by 0.01% to LIBOR plus 0.89%. The facility fee remains at 20 basis points. Our separate $1.50 billion unsecured revolving credit facility matures in March 2024 (as fully extended) and has an interest rate of LIBOR plus 0.90% and a facility fee of 20 basis points.
555 California Street
On October 23, 2020, Alexander'sMay 10, 2021, we completed a $94,000,000 financing$1.2 billion refinancing of The Alexander,555 California Street, a 312-unit residentialthree building that is part of Alexander's residential and retail complex located1.8 million square foot office campus in Rego Park, Queens, New York.San Francisco, in which we own a 70.0% controlling interest. The interest-only loan hasbears a rate of LIBOR plus 1.93% in years one through five (2.02% as of September 30, 2021), LIBOR plus 2.18% in year six and LIBOR plus 2.43% in year seven. The loan matures in May 2023, with five one-year extension options (May 2028 as fully extended). We swapped the interest rate on our $840,000,000 share of the loan to a fixed rate of 2.63% and matures in November 2027.
On November 2, 2020, we repaid2.26% through May 2024. The loan replaced the $52,476,000 mortgageprevious $533,000,000 loan on our land under a portion of the Borgata Hotel and Casino complex. The 10-year fixed rate amortizing loanthat bore interest at 5.14%a fixed rate of 5.10% and was scheduled to mature in FebruarySeptember 2021.
Senior Unsecured Notes
On May 24, 2021, we completed a green bond public offering of $400,000,000 2.15% senior unsecured notes due June 1, 2026 ("2026 Notes") and $350,000,000 3.40% senior unsecured notes due June 1, 2031 ("2031 Notes"). Interest on the senior unsecured notes will be payable semi-annually on June 1 and December 1, commencing December 1, 2021. The 2026 Notes were sold at 99.86% of their face amount to yield 2.18% and the 2031 Notes were sold at 99.59% of their face amount to yield 3.45%.
theMART
On May 28, 2021, we repaid the $675,000,000 mortgage loan on theMART, a 3.7 million square foot commercial building in Chicago, with proceeds from our senior unsecured notes offering. The loan bore interest at 2.70% and was scheduled to mature in September 2021.
Preferred Securities
On September 22, 2021, Vornado sold 12,000,000 4.45% Series O cumulative redeemable preferred shares at a price of $25.00 per share, pursuant to an effective registration statement. Vornado received aggregate net proceeds of $291,195,000, after underwriters' discount and issuance costs, and contributed the net proceeds to the Operating Partnership in exchange for 12,000,000 4.45% Series O preferred units (with economic terms that mirror those of the Series O preferred shares). Dividends on the Series O preferred shares/units are cumulative and payable quarterly in arrears. The Series O preferred shares/units are not convertible into, or exchangeable for, any of our properties or securities. On or after five years from the date of issuance (or sooner under limited circumstances), Vornado may redeem the Series O preferred shares/units at a redemption price of $25.00 per share/unit, plus accrued and unpaid dividends/distributions through the date of redemption. The Series O preferred shares/units have no maturity date and will remain outstanding indefinitely unless redeemed by Vornado. Vornado used the net proceeds for the redemption of its 5.70% Series K cumulative redeemable preferred shares/units (see below).
On September 13, 2021, we called for redemption of all of the outstanding 5.70% Series K cumulative redeemable preferred shares/units. As a result, as of September 30, 2021, we reclassified the 5.70% Series K preferred shares/units from shareholders' equity/partners' capital to liabilities on our consolidated balance sheets. On October 13, 2021, we redeemed all of the outstanding 5.70% Series K preferred shares/units at their redemption price of $25.00 per share/unit, or $300,000,000 in the aggregate, plus accrued and unpaid dividends/distributions through the date of redemption. In connection with the redemption, we expensed $9,033,000 of previously capitalized issuance costs in "Series K preferred share/unit issuance costs" on our consolidated statements of income to arrive at "net income attributable to common shareholders" for the three and nine months ended September 30, 2021.
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Leasing Activity
The leasing activity and related statistics in the tablediscussed below are based on leases signed during the period and are not intended to coincide with the commencement of rental revenue in accordance with accounting principles generally accepted in the United States of America (“GAAP”). Second generation relet space represents square footage that has not been vacant for more than nine months and tenant improvements and leasing commissions are based on our share of square feet leased during the period.
(Square feet in thousands)New York
OfficeRetailtheMART555 California Street
Three Months Ended September 30, 2020
Total square feet leased1,453 (1)25 44 90 
Our share of square feet leased:1,121 22 44 63 
Initial rent(2)
$92.74 $311.39 $59.38 $— (3)
Weighted average lease term (years)19.6 7.1 5.2 5.0 
Second generation relet space:
Square feet419 11 44 — 
GAAP basis:
Straight-line rent(4)
$82.29 $392.77 $56.02 $— (3)
Prior straight-line rent$65.22 $463.77 $56.86 $— 
Percentage increase (decrease)26.2 %(15.3)%

(1.5)%— %
Cash basis:
Initial rent(2)
$65.29 $378.06 $59.38 $— (3)
Prior escalated rent$60.61 $523.92 $60.48 $— 
Percentage increase (decrease)7.7 %(27.8)%(1.8)%— %
Tenant improvements and leasing commissions:
Per square foot$173.73 $102.87 $15.62 $— 
Per square foot per annum$8.86 $14.49 $3.00 $— 
Percentage of initial rent9.6 %4.7 %5.1 %— %
____________________
See notes below.
(Square feet in thousands)New York
OfficeRetailtheMART555 California Street
Nine Months Ended September 30, 2020
Total square feet leased2,068 63 317 101 
Our share of square feet leased:1,709 59 317 71 
Initial rent(2)
$90.62 (5)$265.44 $50.12 $105.66 (3)
Weighted average lease term (years)14.9 6.3 8.8 4.8 
Second generation relet space:
Square feet777 42 312 
GAAP basis:
Straight-line rent(4)
$83.25 (5)$267.19 $47.30 $107.37 (3)
Prior straight-line rent$74.32 $225.74 $46.62 $78.53 
Percentage increase12.0 %18.4 %1.5 %36.7 %
Cash basis:
Initial rent(2)
$74.68 (5)$261.86 $49.95 $105.66 (3)
Prior escalated rent$70.95 $245.47 $50.75 $85.39 
Percentage increase (decrease)5.3 %6.7 %(1.6)%23.7 %
Tenant improvements and leasing commissions:
Per square foot$131.73 $159.09 $37.35 $0.93 
Per square foot per annum$8.84 $25.25 $4.24 $0.19 
Percentage of initial rent9.8 %9.5 %8.5 %0.2 %
____________________Three Months Ended September 30, 2021
(1)Primarily 730757,000 square feet (694 at our share) for the new Facebook lease at Farley Office and 633 square feet (348 at our share) for theof New York University long-term renewal at One Park Avenue.
(2)Represents the cash basis weighted average starting rent per square foot, which is generally indicative of market rents. Most leases include free rent and periodic step-ups in rent which are not included in the initial cash basis rent per square foot but are included in the GAAP basis straight-line rent per square foot.
(3)Excludes the rent on 90 square feet (63Office space (672,000 square feet at share) as the startingat an initial rent will be determined in 2021 based on fair market value.
(4)Represents the GAAP basis weighted average rentof $77.26 per square foot that is recognized over theand a weighted average lease term of 7.6 years. The changes in the respective leasesGAAP and includescash mark-to-market rent on the effect629,000 square feet of free rentsecond generation space were positive 4.2% and periodic step-ups inpositive 1.4%, respectively. Tenant improvements and leasing commissions were $10.18 per square foot per annum, or 13.2% of initial rent.
(5)Excludes111,000 square feet of New York Retail space (105,000 square feet at share) at an initial rent of $109.61 per square foot and a weighted average lease term of 26.4 years. The changes in the GAAP and cash mark-to-market rent on 174the 95,000 square feet asof second generation space were positive 45.3% and positive 19.6%, respectively. Tenant improvements and leasing commissions were $1.65 per square foot per annum, or 1.5% of initial rent.
103,000 square feet at theMART (all at share) at an initial rent of $49.89 per square foot and a weighted average lease term of 7.9 years. The changes in the startingGAAP and cash mark-to-market rent will be determinedon the 62,000 square feet of second generation space were positive 13.6% and positive 2.4%, respectively. Tenant improvements and leasing commissions were $14.42 per square foot per annum, or 28.9% of initial rent.
23,000 square feet at 555 California Street (16,000 square feet at share) at an initial rent of $113.77 per square foot and a weighted average lease term of 3.3 years. The changes in 2021 basedthe GAAP and cash mark-to-market rent on fair market value.the 12,000 square feet of second generation space were positive 12.9% and positive 2.9%, respectively. Tenant improvements and leasing commissions were $7.11 per square foot per annum, or 6.2% of initial rent.
Nine Months Ended September 30, 2021
1,298,000 square feet of New York Office space (1,122,000 square feet at share) at an initial rent of $79.78 per square foot and a weighted average lease term of 8.8 years. The changes in the GAAP and cash mark-to-market rent on the 911,000 square feet of second generation space were positive 1.1% and negative 0.3% respectively. Tenant improvements and leasing commissions were $11.11 per square foot per annum, or 13.9% of initial rent.
176,000 square feet of New York Retail space (158,000 square feet at share) at an initial rent of $142.70 per square foot and a weighted average lease term of 21.0 years. The changes in the GAAP and cash mark-to-market rent on the 107,000 square feet of second generation space were positive 40.5% and positive 15.5%, respectively. Tenant improvements and leasing commissions were $3.53 per square foot per annum, or 2.5% of initial rent.
302,000 square feet at theMART (all at share) at an initial rent of $50.86 per square foot and a weighted average lease term of 6.0 years. The changes in the GAAP and cash mark-to-market rent on the 256,000 square feet of second generation space were positive 0.6% and positive 1.1%, respectively. Tenant improvements and leasing commissions were $7.83 per square foot per annum, or 15.4% of initial rent.
74,000 square feet at 555 California Street (52,000 square feet at share) at an initial rent of $114.70 per square foot and a weighted average lease term of 4.0 years. The changes in the GAAP and cash mark-to-market rent on the 48,000 square feet of second generation space were positive 29.5% and positive 25.4%, respectively. Tenant improvements and leasing commissions were $3.94 per square foot per annum, or 3.4% of initial rent.

5655


Overview - continued
Square Footage (in service) and Occupancy as of September 30, 20202021
(Square feet in thousands)(Square feet in thousands)Square Feet (in service)(Square feet in thousands)Square Feet (in service)
Number of
Properties
Total
Portfolio
Our
Share
Occupancy %Number of
Properties
Total
Portfolio
Our
Share
Occupancy %
New York:New York:New York:
OfficeOffice35 18,556 15,608 95.8 %Office33 18,550 15,903 91.6 %
Retail (includes retail properties that are in the base of our office properties)Retail (includes retail properties that are in the base of our office properties)71 2,268 1,800 79.9 %Retail (includes retail properties that are in the base of our office properties)62 2,212 1,770 77.2 %
Residential - 1,678 units1,526 793 84.8 %
Alexander's, including 312 residential units2,254 730 96.0 %
Hotel Pennsylvania (closed since April 1, 2020)— — 
Residential - 1,986 units(1)
Residential - 1,986 units(1)
1,518 786 95.9 %(1)
Alexander'sAlexander's2,218 719 95.6 %(1)
24,604 18,931 94.3 %24,498 19,178 90.4 %
Other:Other:Other:
theMARTtheMART3,825 3,816 89.8 %theMART3,692 3,683 89.6 %
555 California Street555 California Street1,741 1,218 98.4 %555 California Street1,740 1,219 98.1 %
OtherOther10 2,485 1,150 92.6 %Other11 2,489 1,154 92.6 %
8,051 6,184 7,921 6,056 
Total square feet as of September 30, 202032,655 25,115 
Total square feet as of September 30, 2021Total square feet as of September 30, 202132,419 25,234 
____________________
See note below.


Square Footage (in service) and Occupancy as of December 31, 20192020
(Square feet in thousands)(Square feet in thousands)Square Feet (in service)(Square feet in thousands)Square Feet (in service)
Number of
properties
Total
Portfolio
Our
Share
Occupancy %Number of
properties
Total
Portfolio
Our
Share
Occupancy %
New York:New York:New York:
OfficeOffice35 19,070 16,195 96.9 %Office33 18,361 15,413 93.4 %
Retail (includes retail properties that are in the base of our office properties)Retail (includes retail properties that are in the base of our office properties)70 2,300 1,842 94.5 %Retail (includes retail properties that are in the base of our office properties)65 2,275 1,805 78.8 %
Residential - 1,679 units1,526 793 97.0 %
Alexander's, including 312 residential units2,230 723 96.5 %
Hotel Pennsylvania1,400 1,400 
Residential - 1,995 units(1)
Residential - 1,995 units(1)
1,526 793 84.9 %(1)
Alexander'sAlexander's2,366 766 98.5 %(1)
26,526 20,953 96.7 %24,528 18,777 92.2 %
Other:Other:    Other:    
theMARTtheMART3,826 3,817 94.6 %theMART3,692 3,683 89.5 %
555 California Street555 California Street1,741 1,218 99.8 %555 California Street1,741 1,218 98.4 %
OtherOther10 2,533 1,198 92.7 %Other11 2,489 1,154 92.8 %
 8,100 6,233    7,922 6,055  
Total square feet as of December 31, 201934,626 27,186 
Total square feet as of December 31, 2020Total square feet as of December 31, 202032,450 24,832 
____________________
(1)The Alexander Apartment Tower (312 units) is reflected in Residential unit count and occupancy.
Critical Accounting Policies
A summary of our critical accounting policies is included in Part II, Item 7 - Management's Discussion and Analysis of Financial Condition and Results of Operations in our Annual Report on Form 10-K for the year ended December 31, 2019.2020. For the nine months ended September 30, 2020,2021, there were no material changes to these policies.
Recently Issued Accounting Literature
Refer to Note 43 - Recently Issued Accounting Literature to the unaudited consolidated financial statements in Part I, Item I of this Quarterly Report on Form 10-Q for information regarding recent accounting pronouncements that may affect us.
5756


NOI At Share by Segment for the Three Months Ended September 30, 20202021 and 20192020
NOI at share represents total revenues less operating expenses including our share of partially owned entities. NOI at share - cash basis represents NOI at share adjusted to exclude straight-line rental income and expense, amortization of acquired below and above market leases, net and other non-cash adjustments. We consider NOI at share - cash basis to be the primary non-GAAP financial measure for making decisions and assessing the unlevered performance of our segments as it relates to the total return on assets as opposed to the levered return on equity. As properties are bought and sold based on NOI at share - cash basis, we utilize this measure to make investment decisions as well as to compare the performance of our assets to that of our peers. NOI at share and NOI at share - cash basis should not be considered alternatives to net income or cash flow from operations and may not be comparable to similarly titled measures employed by other companies. NOI at share - cash basis includes rent that has been deferred as a result of the COVID-19 pandemic. Rent deferrals generally require repayment in monthly installments over a period of time not to exceed twelve months.
Below is a summary of NOI at share and NOI at share - cash basis by segment for the three months ended September 30, 20202021 and 2019.2020.
(Amounts in thousands)(Amounts in thousands)For the Three Months Ended September 30, 2020(Amounts in thousands)For the Three Months Ended September 30, 2021
TotalNew YorkOtherTotalNew YorkOther
Total revenuesTotal revenues$363,962 $293,145 $70,817 Total revenues$409,212 $316,643 $92,569 
Operating expensesOperating expenses(195,645)(161,386)(34,259)Operating expenses(212,699)(151,276)(61,423)
NOI - consolidatedNOI - consolidated168,317 131,759 36,558 NOI - consolidated196,513 165,367 31,146 
Deduct: NOI attributable to noncontrolling interests in consolidated subsidiariesDeduct: NOI attributable to noncontrolling interests in consolidated subsidiaries(25,959)(17,776)(8,183)Deduct: NOI attributable to noncontrolling interests in consolidated subsidiaries(16,886)(9,747)(7,139)
Add: NOI from partially owned entitiesAdd: NOI from partially owned entities78,175 75,837 2,338 Add: NOI from partially owned entities75,644 73,219 2,425 
NOI at shareNOI at share220,533 189,820 30,713 NOI at share255,271 228,839 26,432 
Non-cash adjustments for straight-line rents, amortization of acquired below-market leases, net, and otherNon-cash adjustments for straight-line rents, amortization of acquired below-market leases, net, and other10,981 6,261 4,720 Non-cash adjustments for straight-line rents, amortization of acquired below-market leases, net, and other1,922 783 1,139 
NOI at share - cash basisNOI at share - cash basis$231,514 $196,081 $35,433 NOI at share - cash basis$257,193 $229,622 $27,571 

(Amounts in thousands)(Amounts in thousands)For the Three Months Ended September 30, 2019(Amounts in thousands)For the Three Months Ended September 30, 2020
TotalNew YorkOtherTotalNew YorkOther
Total revenuesTotal revenues$465,961 $380,568 $85,393 Total revenues$363,962 $293,145 $70,817 
Operating expensesOperating expenses(226,359)(188,159)(38,200)Operating expenses(195,645)(161,386)(34,259)
NOI - consolidatedNOI - consolidated239,602 192,409 47,193 NOI - consolidated168,317 131,759 36,558 
Deduct: NOI attributable to noncontrolling interests in consolidated subsidiariesDeduct: NOI attributable to noncontrolling interests in consolidated subsidiaries(18,096)(9,574)(8,522)Deduct: NOI attributable to noncontrolling interests in consolidated subsidiaries(25,959)(17,776)(8,183)
Add: NOI from partially owned entitiesAdd: NOI from partially owned entities86,024 82,649 3,375 Add: NOI from partially owned entities78,175 75,837 2,338 
NOI at shareNOI at share307,530 265,484 42,046 NOI at share220,533 189,820 30,713 
Non-cash adjustments for straight-line rents, amortization of acquired below-market leases, net, and otherNon-cash adjustments for straight-line rents, amortization of acquired below-market leases, net, and other(4,037)(5,560)1,523 Non-cash adjustments for straight-line rents, amortization of acquired below-market leases, net, and other10,981 6,261 4,720 
NOI at share - cash basisNOI at share - cash basis$303,493 $259,924 $43,569 NOI at share - cash basis$231,514 $196,081 $35,433 
5857


NOI At Share by Segment for the Three Months Ended September 30, 20202021 and 20192020 - continued
The elements of our New York and Other NOI at share for the three months ended September 30, 20202021 and 20192020 are summarized below.
(Amounts in thousands)(Amounts in thousands)For the Three Months Ended September 30,(Amounts in thousands)For the Three Months Ended September 30,
2020201920212020
New York:New York:New York:
Office(1)
Office(1)
$159,981 $177,469 
Office(1)
$166,553 $159,981 
Retail(2)
Retail(2)
35,294 68,159 
Retail(2)
49,083 35,294 
ResidentialResidential4,536 5,575 Residential4,194 4,536 
Alexander'sAlexander's6,830 11,269 Alexander's9,009 6,830 
Hotel Pennsylvania(3)
Hotel Pennsylvania(3)
(16,821)3,012 
Hotel Pennsylvania(3)
— (16,821)
Total New YorkTotal New York189,820 265,484 Total New York228,839 189,820 
Other:Other:Other:
theMART(4)
theMART(4)
13,171 24,862 
theMART(4)
6,431 13,171 
555 California Street555 California Street15,618 15,265 555 California Street16,128 15,618 
Other investmentsOther investments1,924 1,919 Other investments3,873 1,924 
Total OtherTotal Other30,713 42,046 Total Other26,432 30,713 
NOI at shareNOI at share$220,533 $307,530 NOI at share$255,271 $220,533 
___________________
(1)2020 includes $5,112 of write-offs of tenant receivables deemed uncollectible and $4,368 of non-cash write-offs of receivables arising from the straight-lining of rents.
(2)2020 includes $4,688 of non-cash write-offs of receivables arising from the straight-lining of rents and $4,668 of write-offs of tenant receivables deemed uncollectible.
(3)The decreaseOn April 5, 2021, we permanently closed the Hotel Pennsylvania. Beginning in NOI at share isthe third quarter of 2021, we commenced capitalization of carrying costs in connection with our development of the future PENN 15 (formerly Hotel Pennsylvania) site.
(4)2021 includes an increase in real estate tax expense of $12,518 primarily due to a recent increase in the effectstriennial tax-assessed value of the COVID-19 pandemic. The Hotel Pennsylvania has been closed since April 1, 2020 as a result of the pandemic. 2020 includes a $9,246 severance accrual for furloughed union employees.
(4)The decrease in NOI at share is primarily due to the effects of the COVID-19 pandemic, causing trade shows to be cancelled from late March 2020 through the remainder of the year.theMART.
The elements of our New York and Other NOI at share - cash basis for the three months ended September 30, 20202021 and 20192020 are summarized below.
(Amounts in thousands)(Amounts in thousands)For the Three Months Ended September 30,(Amounts in thousands)For the Three Months Ended September 30,
2020201920212020
New York:New York:New York:
Office(1)
Office(1)
$162,357 $174,796 
Office(1)
$170,521 $162,357 
Retail(2)
Retail(2)
36,476 65,636 
Retail(2)
45,175 36,476 
ResidentialResidential4,178 5,057 Residential4,136 4,178 
Alexander'sAlexander's9,899 11,471 Alexander's9,790 9,899 
Hotel Pennsylvania(3)
Hotel Pennsylvania(3)
(16,829)2,964 
Hotel Pennsylvania(3)
— (16,829)
Total New YorkTotal New York196,081 259,924 Total New York229,622 196,081 
Other:Other:Other:
theMART(4)
theMART(4)
17,706 26,588 
theMART(4)
8,635 17,706 
555 California Street555 California Street15,530 15,325 555 California Street14,745 15,530 
Other investmentsOther investments2,197 1,656 Other investments4,191 2,197 
Total OtherTotal Other35,433 43,569 Total Other27,571 35,433 
NOI at share - cash basisNOI at share - cash basis$231,514 $303,493 NOI at share - cash basis$257,193 $231,514 
___________________
(1)2020 includes $5,112 of write-offs of tenant receivables deemed uncollectible.
(2)2020 includes $4,668 of write-offs of tenant receivables deemed uncollectible.
(3)The decreaseOn April 5, 2021, we permanently closed the Hotel Pennsylvania. Beginning in NOI at share - cash basis isthe third quarter of 2021, we commenced capitalization of carrying costs in connection with our development of the future PENN 15 (formerly Hotel Pennsylvania) site.
(4)2021 includes an increase in real estate tax expense of $12,518 primarily due to a recent increase in the effectstriennial tax-assessed value of the COVID-19 pandemic. The Hotel Pennsylvania has been closed since April 1, 2020 as a result of the pandemic. 2020 includes a $9,246 severance accrual for furloughed union employees.
(4)The decrease in NOI at share - cash basis is primarily due to the effects of the COVID-19 pandemic, causing trade shows to be cancelled from late March 2020 through the remainder of the year.theMART.

5958


Reconciliation of Net Income (Loss) to NOI At Share and NOI At Share - Cash Basis for the Three Months Ended September 30, 20202021 and 20192020

Below is a reconciliation of net income to NOI at share and NOI at share - cash basis for the three months ended September 30, 20202021 and 2019.2020.
(Amounts in thousands)(Amounts in thousands)For the Three Months Ended September 30,(Amounts in thousands)For the Three Months Ended September 30,
2020201920212020
Net incomeNet income$68,736 $363,849 Net income$71,765 $68,736 
Depreciation and amortization expenseDepreciation and amortization expense107,013 96,437 Depreciation and amortization expense100,867 107,013 
General and administrative expenseGeneral and administrative expense32,407 33,237 General and administrative expense25,553 32,407 
Expense from transaction related costs and impairment losses584 1,576 
Loss (income) from partially owned entities80,909 (25,946)
Loss (income) from real estate fund investments13,823 (2,190)
Impairment losses, transaction related costs and otherImpairment losses, transaction related costs and other9,681 584 
(Income) loss from partially owned entities(Income) loss from partially owned entities(26,269)80,909 
Loss from real estate fund investmentsLoss from real estate fund investments66 13,823 
Interest and other investment income, netInterest and other investment income, net(1,729)(3,045)Interest and other investment income, net(633)(1,729)
Interest and debt expenseInterest and debt expense57,371 61,448 Interest and debt expense50,946 57,371 
Net gains on disposition of wholly owned and partially owned assetsNet gains on disposition of wholly owned and partially owned assets(214,578)(309,657)Net gains on disposition of wholly owned and partially owned assets(10,087)(214,578)
Income tax expense23,781 23,885 
Loss from discontinued operations— 
Income tax (benefit) expenseIncome tax (benefit) expense(25,376)23,781 
NOI from partially owned entitiesNOI from partially owned entities78,175 86,024 NOI from partially owned entities75,644 78,175 
NOI attributable to noncontrolling interests in consolidated subsidiariesNOI attributable to noncontrolling interests in consolidated subsidiaries(25,959)(18,096)NOI attributable to noncontrolling interests in consolidated subsidiaries(16,886)(25,959)
NOI at shareNOI at share220,533 307,530 NOI at share255,271 220,533 
Non cash adjustments for straight-line rents, amortization of acquired below-market leases, net and other10,981 (4,037)
Non-cash adjustments for straight-line rents, amortization of acquired below-market leases, net and otherNon-cash adjustments for straight-line rents, amortization of acquired below-market leases, net and other1,922 10,981 
NOI at share - cash basisNOI at share - cash basis$231,514 $303,493 NOI at share - cash basis$257,193 $231,514 
NOI At Share by Region
For the Three Months Ended September 30,For the Three Months Ended September 30,
2020201920212020
Region:Region:Region:
New York City metropolitan areaNew York City metropolitan area87 %87 %New York City metropolitan area91 %87 %
Chicago, ILChicago, IL%%Chicago, IL%%
San Francisco, CASan Francisco, CA%%San Francisco, CA%%
100 %100 %100 %100 %
6059



Results of Operations – Three Months Ended September 30, 20202021 Compared to September 30, 20192020

Revenues
Our revenues were $363,962,000$409,212,000 for the three months ended September 30, 20202021 compared to $465,961,000$363,962,000 for the prior year’s quarter, a decreasean increase of $101,999,000.$45,250,000. Below are the details of the decreaseincrease by segment:
(Amounts in thousands)(Amounts in thousands)TotalNew YorkOther(Amounts in thousands)TotalNew YorkOther
(Decrease) increase due to:
Increase (decrease) due to:Increase (decrease) due to:
Rental revenues:Rental revenues:Rental revenues:
Acquisitions, dispositions and otherAcquisitions, dispositions and other$(11,505)$(11,548)$43 Acquisitions, dispositions and other$13,746 $11,214 $2,532 
Development and redevelopmentDevelopment and redevelopment(24,880)(24,533)(347)Development and redevelopment(891)(891)— 
Hotel Pennsylvania(1)
Hotel Pennsylvania(1)
(25,605)(25,605)— 
Hotel Pennsylvania(1)
76 76 — 
Trade shows(2)
Trade shows(2)
(8,282)— (8,282)
Trade shows(2)
12,605 (1)— 12,605 
Same store operationsSame store operations(35,113)(3)(26,171)(8,942)Same store operations21,414 15,446 5,968 
(105,385)(87,857)(17,528)46,950 25,845 21,105 
Fee and other income:Fee and other income:Fee and other income:
BMS cleaning feesBMS cleaning fees(6,623)(7,195)(4)572 BMS cleaning fees6,773 7,038 (265)
Management and leasing feesManagement and leasing fees8,323 7,986 337 Management and leasing fees(9,140)(9,052)(2)(88)
Other incomeOther income1,686 (357)2,043 Other income667 (333)1,000 
3,386 434 2,952 (1,700)(2,347)647 
Total decrease in revenues$(101,999)$(87,423)$(14,576)
Total increase in revenuesTotal increase in revenues$45,250 $23,498 $21,752 
_____________________________________
See notes below.

Expenses
Our expenses were $339,990,000$349,599,000 for the three months ended September 30, 2020,2021, compared to $358,583,000$339,990,000 for the prior year’s quarter, a decreasean increase of $18,593,000.$9,609,000. Below are the details of the decreaseincrease (decrease) by segment:
(Amounts in thousands)(Amounts in thousands)TotalNew YorkOther(Amounts in thousands)TotalNew YorkOther
(Decrease) increase due to:
Increase (decrease) due to:Increase (decrease) due to:
Operating:Operating:Operating:
Acquisitions, dispositions and other$(3,894)$(3,901)$Acquisitions, dispositions and other$4,445 $4,445 $— 
Development and redevelopment(10,218)(10,372)154 Development and redevelopment(2,253)(2,253)— 
Non-reimbursable expenses(804)(843)39 Non-reimbursable expenses2,262 2,326 (64)
Hotel Pennsylvania(1)
(5,772)(5,772)— Hotel Pennsylvania(16,745)(3)(16,745)— 
Trade shows(2)
(2,816)— (2,816)Trade shows11,600 (1)— 11,600 
BMS expenses(4,605)(5,178)(4)573 BMS expenses4,429 4,694 (265)
Same store operations(2,605)(707)(1,898)Same store operations13,316 (2,577)15,893 
(30,714)(26,773)(3,941)17,054 (10,110)27,164 
Depreciation and amortization:Depreciation and amortization:Depreciation and amortization:
Acquisitions, dispositions and other(44)(46)Acquisitions, dispositions and other8,489 8,489 — 
Development and redevelopment(1,407)(1,411)Development and redevelopment(1,639)(1,639)— 
Same store operations12,027 12,646 (619)Same store operations(12,996)(13,172)176 
10,576 11,189 (613)(6,146)(6,322)176 
General and administrativeGeneral and administrative(830)(542)(288)General and administrative(6,854)(4)(1,170)(5,684)
Expense from deferred compensation plan liability3,367 — 3,367 
Benefit from deferred compensation plan liabilityBenefit from deferred compensation plan liability(3,542)— (3,542)
Transaction related costs(992)— (992)
(Impairment losses, transaction related costs and other) lease liability extinguishment gain(Impairment losses, transaction related costs and other) lease liability extinguishment gain9,097 7,880 (5)1,217 
Total decrease in expenses$(18,593)$(16,126)$(2,467)
Total increase (decrease) in expensesTotal increase (decrease) in expenses$9,609 $(9,722)$19,331 
__________________________________________
(1)Closed since April 1,We cancelled trade shows at theMart beginning late March of 2020 as a resultand resumed trade shows in the third quarter of the COVID-19 pandemic. Operating expense for 2020 includes a $9,246 severance accrual for furloughed union employees.2021.
(2)Cancelled trade shows at theMART from late March 2020 throughPrimarily due to higher leasing fee income in the remainderthird quarter of the year as a result of the pandemic.2020.
(3)2020 includes $11,248 forOn April 5, 2021, we permanently closed the non-cash write-offHotel Pennsylvania. Beginning in the third quarter of receivables arising from2021, we commenced capitalization of carrying costs in connection with our development of the straight-lining of rents and $10,887 for the write-off of tenant receivables deemed uncollectible.future PENN 15 (formerly Hotel Pennsylvania) site.
(4)Primarily due to a decreasethe overhead reduction program previously announced in December 2020.
(5)Non-cash impairment losses for the three Manhattan retail properties located at 677-679, 759-771 and 828-850 Madison Avenue, New York sold in the third party cleaning services provided to retail and office tenants as a resultquarter of the pandemic.2021.
6160


Results of Operations – Three Months Ended September 30, 20202021 Compared to September 30, 20192020 - continued
Income (Loss) Income from Partially Owned Entities
Below are the components of income (loss) income from partially owned entities for the three months ended September 30, 20202021 and 2019.2020.
(Amounts in thousands)(Amounts in thousands)Percentage Ownership at September 30, 2020For the Three Months Ended September 30,(Amounts in thousands)Percentage Ownership at September 30, 2021For the Three Months Ended September 30,
2020201920212020
Our share of net (loss) income:
Our share of net income (loss):Our share of net income (loss):
Fifth Avenue and Times Square JV:Fifth Avenue and Times Square JV:Fifth Avenue and Times Square JV:
Non-cash impairment loss(1)
$(107,023)$— 
Equity in net income(1)
Equity in net income(1)
51.5%$12,671 $7,694 
Return on preferred equity, net of our share of the expenseReturn on preferred equity, net of our share of the expense9,430 9,545 Return on preferred equity, net of our share of the expense9,430 9,430 
Equity in net income51.5%7,694 9,891 
Non-cash impairment lossNon-cash impairment loss— (107,023)
(89,899)19,436 22,101 (89,899)
Alexander's(2)
Alexander's(2)
32.4%3,371 6,692 
Alexander's(2)
32.4%4,795 3,371 
Partially owned office buildings(3)
Partially owned office buildings(3)
Various6,418 (186)
Partially owned office buildings(3)
Various1,291 6,418 
Other investments(4)
Other investments(4)
Various(799)
Other investments(4)
(1,918)(799)
$(80,909)$25,946 $26,269 $(80,909)
____________________
(1)See2021 includes a $3,177 decrease in our share of depreciation and amortization expense compared to the prior year period primarily resulting from non-cash impairment losses recognized during 2020 (see Note 86 - Investments in Partially Owned Entities to the unaudited consolidated financial statements in Part I, Item I of this Quarterly Report on Form 10-Q for additional information.details).
(2)2020 includes our $3,139 share of write-offs of lease receivables deemed uncollectible.
(3)Includes interests in 280 Park Avenue, 650 Madison Avenue, One Park Avenue (consolidated from August 5, 2021, see Note8 - Acquisitions and Dispositions for details), 7 West 34th Street, 512 West 22nd Street, 61 Ninth Avenue, 85 Tenth Avenue and others.
(4)Includes interests in Independence Plaza, Rosslyn Plaza and others.
Loss (Income)Income (Loss) from Real Estate Fund Investments
Below are the components of the income (loss) income from our real estate fund investments for the three months ended September 30, 20202021 and 2019.2020.
(Amounts in thousands)For the Three Months Ended September 30,
20202019
Net unrealized loss on held investments$(14,216)$— 
Net investment income393 2,190 
(Loss) income from real estate fund investments(13,823)2,190 
Less loss (income) attributable to noncontrolling interests in consolidated subsidiaries11,299 (735)
(Loss) income from real estate fund investments net of noncontrolling interests in consolidated subsidiaries$(2,524)$1,455 
(Amounts in thousands)For the Three Months Ended September 30,
20212020
Net investment (loss) income$(66)$393 
Net unrealized loss on held investments— (14,216)
Loss from real estate fund investments(66)(13,823)
Less loss attributable to noncontrolling interests in consolidated subsidiaries360 11,299 
Income (loss) from real estate fund investments net of noncontrolling interests in consolidated subsidiaries$294 $(2,524)
Interest and Other Investment Income, Net
Below are the components of interest and other investment income, net for the three months ended September 30, 20202021 and 2019.2020.
(Amounts in thousands)(Amounts in thousands)For the Three Months Ended September 30,(Amounts in thousands)For the Three Months Ended September 30,
2020201920212020
Interest on loans receivableInterest on loans receivable$574 $1,604 Interest on loans receivable$561 $574 
Interest on cash and cash equivalents and restricted cashInterest on cash and cash equivalents and restricted cash253 4,060 Interest on cash and cash equivalents and restricted cash67 253 
Decrease in fair value of marketable securities— (4,868)
Dividends on marketable securities— 1,312 
Other, netOther, net902 937 Other, net902 
$1,729 $3,045 
TotalTotal$633 $1,729 

6261


Results of Operations – Three Months Ended September 30, 20202021 Compared to September 30, 20192020 - continued
Interest and Debt Expense
Interest and debt expense for the three months ended September 30, 20202021 was $57,371,000$50,946,000 compared to $61,448,000$57,371,000 for the prior year’s quarter, a decrease of $4,077,000.$6,425,000. This decrease was primarily due to (i) $6,532,000$2,707,000 of lower interest expense due to lower variable rates on certain mortgage loans that were previously swapped to higher fixed rates under interest rate swap arrangements that expired in 2020, (ii) $1,411,000 of higher capitalized interest and debt expense and (iii) $429,000 of lower interest expense resulting from lower average interest rates on our variable rate loans, (ii) $5,489,000 of lower interest expense resulting from the repayment of the mortgage payable of PENN2, and (iii) $96,000 of lower interest expense resulting from paydowns of the 220 CPS loan, partially offset by $6,719,000 of lower capitalized interest and debt expense.loans.
Net Gains on Disposition of Wholly Owned and Partially Owned Assets
Net gains on disposition of wholly owned and partially owned assets of $214,578,000 for the three months ended September 30, 2020 consisted2021 were $10,087,000 compared to $214,578,000 for the prior year's quarter, a decrease of $204,491,000. This resulted from lower net gains on the sale of 19220 CPS condominium units at 220 CPS. Net gains on disposition of wholly owned and partially owned assets of $309,657,000units.
Income Tax Benefit (Expense)
Income tax benefit for the three months ended September 30, 2019 consisted of (i) a $159,292,000 net gain on sale of our 25% interest in 330 Madison Avenue, (ii) $130,888,000 of net gains on the sale of 14 condominium units at 220 CPS, and (iii) a $19,477,000 net gain on sale of 3040 M Street.
Income Tax Expense
Income tax expense for the three months ended September 30, 20202021 was $23,781,000$25,376,000 compared to $23,885,000an expense of $23,781,000 for the prior year’s quarter, a decrease in expense of $104,000.$49,157,000. This was primarily due to lower income tax expense from the sale of 220 CPS condominium units and a higher tax benefit recognized by our taxable REIT subsidiaries in 2021.
Net (Income) Loss (Income) Attributable to Noncontrolling Interests in Consolidated Subsidiaries
Net lossincome attributable to noncontrolling interests in consolidated subsidiaries was $848,000$5,425,000 for the three months ended September 30, 2020,2021, compared to incomea loss of $5,774,000$848,000 for the prior year’s quarter, an increase in income of $6,273,000. This resulted primarily from a decrease in income of $6,622,000. This decrease resulted primarily from lower net incomeloss allocated to the noncontrolling interests of our real estate fund investments. The three months ended September 30, 2020 includes $3,822,000 allocated to noncontrolling interests for the non-cash impairment loss recorded on our investment in Fifth Avenue and Times Square JV.
Net Income Attributable to Noncontrolling Interests in the Operating Partnership (Vornado Realty Trust)
Net income attributable to noncontrolling interests in the Operating Partnership was $3,884,000$2,818,000 for the three months ended September 30, 2020,2021, compared to $22,637,000$3,884,000 for the prior year’s quarter, a decrease of $18,753,000.$1,066,000. This decrease resulted primarily from lower net income subject to allocation to unitholders.
Preferred Share Dividends of Vornado Realty TrustInterest and Debt Expense
Preferred share dividends were $12,530,000Interest and debt expense for the three months ended September 30, 2020,2021 was $50,946,000 compared to $12,532,000$57,371,000 for the prior year’s quarter, a decrease of $2,000.$6,425,000. This was primarily due to (i) $2,707,000 of lower interest expense due to lower variable rates on certain mortgage loans that were previously swapped to higher fixed rates under interest rate swap arrangements that expired in 2020, (ii) $1,411,000 of higher capitalized interest and debt expense and (iii) $429,000 of lower interest expense resulting from lower average interest rates on our variable rate loans.
Preferred Unit Distributions
Net Gains on Disposition of Vornado Realty L.P.Wholly Owned and Partially Owned Assets
Preferred unit distributions were $12,572,000Net gains on disposition of wholly owned and partially owned assets for the three months ended September 30, 2020,2021 were $10,087,000 compared to $12,574,000$214,578,000 for the prior year's quarter, a decrease of $204,491,000. This resulted from lower net gains on sale of 220 CPS condominium units.
Income Tax Benefit (Expense)
Income tax benefit for the three months ended September 30, 2021 was $25,376,000 compared to an expense of $23,781,000 for the prior year’s quarter, a decrease in expense of $49,157,000. This was primarily due to lower income tax expense from the sale of 220 CPS condominium units and a higher tax benefit recognized by our taxable REIT subsidiaries in 2021.
Net (Income) Loss Attributable to Noncontrolling Interests in Consolidated Subsidiaries
Net income attributable to noncontrolling interests in consolidated subsidiaries was $5,425,000 for the three months ended September 30, 2021, compared to a loss of $848,000 for the prior year’s quarter, an increase in income of $6,273,000. This resulted primarily from a decrease in net loss allocated to the noncontrolling interests of our real estate fund investments.
Net Income Attributable to Noncontrolling Interests in the Operating Partnership (Vornado Realty Trust)
Net income attributable to noncontrolling interests in the Operating Partnership was $2,818,000 for the three months ended September 30, 2021, compared to $3,884,000 for the prior year’s quarter, a decrease of $2,000.
63


Results of Operations – Three Months Ended September 30, 2020 Compared to September 30, 2019 - continued
Same Store Net Operating Income At Share
Same store NOI at share represents NOI at share$1,066,000. This resulted primarily from operations which are in service in both the current and prior year reporting periods. Same store NOI at share - cash basis is same store NOI at share adjusted to exclude straight-line rental income and expense, amortization of acquired below and above market leases, net and other non-cash adjustments. We present these non-GAAP measures to (i) facilitate meaningful comparisons of the operational performance of our properties and segments, (ii) make decisions on whether to buy, sell or refinance properties, and (iii) compare the performance of our properties and segments to those of our peers. Same store NOI at share and same store NOI at share - cash basis should not be considered alternatives tolower net income or cash flow from operations and may not be comparablesubject to similarly titled measures employed by other companies.
Below are reconciliations of NOI at shareallocation to same store NOI at share for our New York segment, theMART, 555 California Street and other investments for the three months ended September 30, 2020 compared to September 30, 2019.
(Amounts in thousands)TotalNew YorktheMART555 California StreetOther
NOI at share for the three months ended September 30, 2020$220,533 $189,820 $13,171 $15,618 $1,924 
Less NOI at share from:
Development properties(4,284)(4,288)— — 
Hotel Pennsylvania (closed beginning April 1, 2020)16,821 16,821 — — — 
Other non-same store (income) expense, net(3,273)(1,318)(102)71 (1,924)
Same store NOI at share for the three months ended September 30, 2020$229,797 $201,035 $13,069 $15,693 $— 
NOI at share for the three months ended September 30, 2019$307,530 $265,484 $24,862 $15,265 $1,919 
Less NOI at share from:
Development properties(18,299)(18,299)— — — 
Hotel Pennsylvania (closed beginning April 1, 2020)(3,012)(3,012)— — — 
Other non-same store (income) expense, net(11,446)(9,121)(524)118 (1,919)
Same store NOI at share for the three months ended September 30, 2019$274,773 $235,052 $24,338 $15,383 $— 
(Decrease) increase in same store NOI at share for the three months ended September 30, 2020 compared to September 30, 2019$(44,976)$(34,017)$(11,269)$310 $— 
% (decrease) increase in same store NOI at share(16.4)%(14.5)%(46.3)%2.0 %— %
64


Results of Operations – Three Months Ended September 30, 2020 Compared to September 30, 2019 - continued
Same Store Net Operating Income At Share - continued
    Below are reconciliations of NOI at share - cash basis to same store NOI at share - cash basis for our New York segment, theMART, 555 California Street and other investments for the three months ended September 30, 2020 compared to September 30, 2019.
(Amounts in thousands)TotalNew YorktheMART555 California StreetOther
NOI at share - cash basis for the three months ended September 30, 2020$231,514 $196,081 $17,706 $15,530 $2,197 
Less NOI at share - cash basis from:
Development properties(7,729)(7,733)— — 
Hotel Pennsylvania (closed beginning April 1, 2020)16,829 16,829 — — — 
Other non-same store (income) expense, net(5,165)(2,865)(131)28 (2,197)
Same store NOI at share - cash basis for the three months ended September 30, 2020$235,449 $202,312 $17,575 $15,562 $— 
NOI at share - cash basis for the three months ended September 30, 2019$303,493 $259,924 $26,588 $15,325 $1,656 
Less NOI at share - cash basis from:
Dispositions(693)(693)— — — 
Development properties(23,839)(23,839)— — — 
Hotel Pennsylvania (closed beginning April 1, 2020)(2,964)(2,964)— — — 
Other non-same store (income) expense, net(12,631)(10,156)(863)44 (1,656)
Same store NOI at share - cash basis for the three months ended September 30, 2019$263,366 $222,272 $25,725 $15,369 $— 
(Decrease) increase in same store NOI at share - cash basis for the three months ended September 30, 2020 compared to September 30, 2019$(27,917)$(19,960)$(8,150)$193 $— 
% (decrease) increase in same store NOI at share - cash basis(10.6)%(9.0)%(31.7)%1.3 %— %
65
unitholders.


NOI At Share by Segment for the Nine Months Ended September 30, 2020 and 2019
Below is a summary of NOI at share and NOI at share - cash basisby segment for the nine months ended September 30, 2020 and 2019.
(Amounts in thousands)For the Nine Months Ended September 30, 2020
TotalNew YorkOther
Total revenues$1,151,520 $919,388 $232,132 
Operating expenses(600,077)(484,624)(115,453)
NOI - consolidated551,443 434,764 116,679 
Deduct: NOI attributable to noncontrolling interests in consolidated subsidiaries(56,900)(34,713)(22,187)
Add: NOI from partially owned entities229,543 221,296 8,247 
NOI at share724,086 621,347 102,739 
Non-cash adjustments for straight-line rents, amortization of acquired below-market leases, net and other48,247 40,310 7,937 
NOI at share - cash basis$772,333 $661,657 $110,676 


(Amounts in thousands)For the Nine Months Ended September 30, 2019
TotalNew YorkOther
Total revenues$1,463,732 $1,200,234 $263,498 
Operating expenses(694,006)(574,073)(119,933)
NOI - consolidated769,726 626,161 143,565 
Deduct: NOI attributable to noncontrolling interests in consolidated subsidiaries(51,915)(31,011)(20,904)
Add: NOI from partially owned entities236,400 211,394 25,006 
NOI at share954,211 806,544 147,667 
Non-cash adjustments for straight-line rents, amortization of acquired below-market leases, net and other530 (3,741)4,271 
NOI at share - cash basis$954,741 $802,803 $151,938 

66


NOI At Share by Segment for the Nine Months Ended September 30, 2020 and 2019- continued
The elements of our New York and Other NOI at share for the nine months ended September 30, 2020 and 2019 are summarized below.
(Amounts in thousands)For the Nine Months Ended September 30,
20202019
New York:
Office(1)(2)
$504,630 $540,601 
Retail(1)(3)
109,153 213,489 
Residential16,604 17,528 
Alexander's25,653 33,699 
Hotel Pennsylvania(4)
(34,693)1,227 
Total New York621,347 806,544 
Other:
theMART(5)
52,087 79,359 
555 California Street45,686 45,124 
Other investments(6)
4,966 23,184 
Total Other102,739 147,667 
NOI at share$724,086 $954,211 
___________________
(1)Reflects the transfer of 45.4% of common equity in the properties contributed to Fifth Avenue and Times Square JV on April 18, 2019.
(2)2020 includes $17,588 of non-cash write-offs of receivables arising from the straight-lining of rents, including the New York & Company, Inc. lease at 330 West 34th Street, and $6,052 of write-offs of tenant receivables deemed uncollectible.
(3)2020 includes $25,124 of non-cash write-offs of receivables arising from the straight-lining of rents, including the JCPenney lease at Manhattan Mall, and $11,399 of write-offs of tenant receivables deemed uncollectible. 2019 includes $13,832 of non-cash write-offs of receivables arising from the straight-lining of rents.
(4)The decrease in NOI at share is primarily due to the effects of the COVID-19 pandemic. The Hotel Pennsylvania has been closed since April 1, 2020 as a result of the pandemic. 2020 includes a $9,246 severance accrual for furloughed union employees.
(5)The decrease in NOI at share is primarily due to the effects of the COVID-19 pandemic, causing trade shows to be cancelled from late March 2020 through the remainder of the year.
(6)2019 includes our share of PREIT (accounted for as a marketable security from March 12, 2019 and sold on January 23, 2020) and UE (sold on March 4, 2019).
The elements of our New York and Other NOI at share - cash basis for the nine months ended September 30, 2020 and 2019 are summarized below.
(Amounts in thousands)For the Nine Months Ended September 30,
20202019
New York:
Office(1)(2)
$524,830 $537,972 
Retail(1)(3)
124,430 213,298 
Residential15,541 16,131 
Alexander's31,574 34,320 
Hotel Pennsylvania(4)
(34,718)1,082 
Total New York661,657 802,803 
Other:
theMART(5)
58,176 83,484 
555 California Street45,970 45,665 
Other investments(6)
6,530 22,789 
Total Other110,676 151,938 
NOI at share - cash basis$772,333 $954,741 
___________________
(1)Reflects the transfer of 45.4% of common equity in the properties contributed to Fifth Avenue and Times Square JV on April 18, 2019.
(2)2020 includes $6,052 of write-offs of tenant receivables deemed uncollectible.
(3)2020 includes $11,399 of write-offs of tenant receivables deemed uncollectible.
(4)The decrease in NOI at share - cash basis is primarily due to the effects of the COVID-19 pandemic. The Hotel Pennsylvania has been closed since April 1, 2020 as a result of the pandemic. 2020 includes a $9,246 severance accrual for furloughed union employees.
(5)The decrease in NOI at share - cash basis is primarily due to the effects of the COVID-19 pandemic, causing trade shows to be cancelled from late March 2020 through the remainder of the year.
(6)2019 includes our share of PREIT (accounted for as a marketable security from March 12, 2019 and sold on January 23, 2020) and UE (sold on March 4, 2019).
67


Reconciliation of Net (Loss) Income to NOI At Share for the Nine Months Ended September 30, 2020 and 2019
Below is a reconciliation of net (loss) income to NOI at share and NOI at share - cash basis for the nine months ended September 30, 2020 and 2019.
(Amounts in thousands)For the Nine Months Ended September 30,
20202019
Net (loss) income$(253,119)$3,173,586 
Depreciation and amortization expense292,611 326,181 
General and administrative expense120,255 130,129 
(Gain from lease liability extinguishment) and expense from transaction related costs and impairment losses, net(68,566)103,315 
Loss (income) from partially owned entities353,679 (56,139)
Loss from real estate fund investments225,328 13,780 
Interest and other investment loss (income), net7,068 (15,930)
Interest and debt expense174,618 226,940 
Net gain on transfer to Fifth Avenue and Times Square JV— (2,571,099)
Net gains on disposition of wholly owned and partially owned assets(338,862)(641,664)
Income tax expense38,431 80,542 
Loss from discontinued operations— 85 
NOI from partially owned entities229,543 236,400 
NOI attributable to noncontrolling interests in consolidated subsidiaries(56,900)(51,915)
NOI at share724,086 954,211 
Non cash adjustments for straight-line rents, amortization of acquired below-market leases, net and other48,247 530 
NOI at share - cash basis$772,333 $954,741 
NOI At Share by Region
For the Nine Months Ended September 30,
20202019
Region:
New York City metropolitan area87 %86 %
Chicago, IL%%
San Francisco, CA%%
100 %100 %


68



Results of Operations – Nine Months Ended September 30, 2020 Compared to September 30, 2019
Revenues
Our revenues were $1,151,520,000 for the nine months ended September 30, 2020, compared to $1,463,732,000 for the prior year’s nine months, a decrease of $312,212,000. Below are the details of the decrease by segment:
(Amounts in thousands)TotalNew YorkOther
Increase (decrease) due to:
Rental revenues:
Acquisitions, dispositions and other$1,173 $1,038 $135 
Development and redevelopment(55,367)(54,817)(550)
Hotel Pennsylvania(1)
(55,238)(55,238)— 
Trade shows(2)
(25,343)— (25,343)
Properties transferred to Fifth Avenue and Times Square JV(100,554)(100,554)— 
Same store operations(74,764)(3)(61,328)(13,436)
(310,093)(270,899)(39,194)
Fee and other income:
BMS cleaning fees(15,397)(17,062)(4)1,665 
Management and leasing fees6,290 5,838 452 
Properties transferred to Fifth Avenue and Times Square JV(389)(389)— 
Other income7,377 1,666 5,711 
(2,119)(9,947)7,828 
Total decrease in revenues$(312,212)$(280,846)$(31,366)
_____________
See notes on the following page.


69


Results of Operations – Nine Months Ended September 30, 2020 Compared to September 30, 2019- continued
Expenses
Our expenses were $943,829,000 for the nine months ended September 30, 2020, compared to $1,261,353,000 for the prior year’s nine months, a decrease of $317,524,000. Below are the details of the decrease by segment:
(Amounts in thousands)TotalNew YorkOther
(Decrease) increase due to:
Operating:
Acquisitions, dispositions and other$(8,670)$(8,624)$(46)
Development and redevelopment(26,565)(26,573)
Non-reimbursable expenses454 274 180 
Hotel Pennsylvania(1)
(19,329)(19,329)— 
Trade shows(2)
(8,978)— (8,978)
BMS expenses(9,521)(11,187)(4)1,666 
Properties transferred to Fifth Avenue and Times Square JV(21,615)(21,615)— 
Same store operations295 (2,395)2,690 
(93,929)(89,449)(4,480)
Depreciation and amortization:
Acquisitions, dispositions and other(3,824)(3,833)
Development and redevelopment(279)(1,071)792 
Properties transferred to Fifth Avenue and Times Square JV(25,119)(25,119)— 
Same store operations(4,348)(3,386)(962)
(33,570)(33,409)(161)
General and administrative(9,874)(5)(4,147)(5,727)
(Benefit) expense from deferred compensation plan liability(8,270)— (8,270)
(Gain from lease liability extinguishment) and expense from transaction related costs and impairment losses, net(171,881)(171,620)(6)(261)
Total decrease in expenses$(317,524)$(298,625)$(18,899)
___________________
(1)Closed since April 1, 2020 as a result of the COVID-19 pandemic. Operating expense for 2020 includes a $9,246 severance accrual for furloughed union employees.
(2)Cancelled trade shows at theMART from late March 2020 through the remainder of the year as a result of the pandemic.
(3)2020 includes $45,258 for the non-cash write-off of receivables arising from the straight-lining of rent, including the JCPenney retail lease at Manhattan Mall and the New York & Company, Inc. office lease at 330 West 34th Street, and $15,508 for the write-off of tenant receivables deemed uncollectible.
(4)Primarily due to a decrease in third party cleaning services provided to retail and office tenants as a result of the pandemic.
(5)Primarily due to $8,444 non-cash stock-based compensation expense for the accelerated vesting of previously issued Operating Partnership units and Vornado restricted stock in 2019 due to the removal of the time-based vesting requirements for participants who have reached 65 years of age and $844 of lower non-cash stock-based compensation expense for the time-based compensation granted in connection with the new leadership group announced in April 2019.
(6)Due to $101,360 of non-cash impairment losses, substantially 608 Fifth Avenue, recognized in the second quarter of 2019 and $70,260 of lease liability extinguishment gain related to 608 Fifth Avenue recognized in the second quarter of 2020.


70


Results of Operations – Nine Months Ended September 30, 2020 Compared to September 30, 2019- continued
(Loss) Income from Partially Owned Entities
Below are the components of (loss) income from partially owned entities for the nine months ended September 30, 2020 and 2019.
(Amounts in thousands)Percentage Ownership at September 30, 2020For the Nine Months Ended September 30,
20202019
Our share of net (loss) income:
Fifth Avenue and Times Square JV(1):
Non-cash impairment loss(2)
$(413,349)$— 
Return on preferred equity, net of our share of the expense27,926 18,131 
Equity in net income(3)
51.5%13,631 21,108 
(371,792)39,239 
Alexander's(4)
32.4%11,198 18,185 
Partially owned office buildings(5)
Various8,550 (1,531)
Other investments(6)
Various(1,635)246 
$(353,679)$56,139 
____________________
(1)Entered into on April 18, 2019.
(2)See Note 8 - Investments in Partially Owned Entities to the unaudited consolidated financial statements in Part I, Item I of this Quarterly Report on Form 10-Q for additional information.
(3)2020 includes a $10,047 reduction in income related to a Forever 21 lease modification at 1540 Broadway and $2,997 of write-offs of lease receivables deemed uncollectible during 2020.
(4)2020 includes our $4,846 share of write-offs of lease receivables deemed uncollectible.
(5)Includes interests in 280 Park Avenue, 650 Madison Avenue, One Park Avenue, 7 West 34th Street, 330 Madison Avenue (sold on July 11, 2019), 512 West 22nd Street, 61 Ninth Avenue, 85 Tenth Avenue and others.
(6)Includes interests in Independence Plaza, Rosslyn Plaza, UE (sold on March 4, 2019), PREIT (accounted for as a marketable security from March 12, 2019 and sold on January 23, 2020) and others.
Loss from Real Estate Fund Investments
Below are the components of loss from our real estate fund investments for the nine months ended September 30, 2020 and 2019.
(Amounts in thousands)For the Nine Months Ended September 30,
20202019
Net unrealized loss on held investments$(225,412)$(16,162)
Net investment income84 2,382 
Loss from real estate fund investments(225,328)(13,780)
Less loss (income) attributable to noncontrolling interests in consolidated subsidiaries160,557 (8,427)
Loss from real estate fund investments net of noncontrolling interests in consolidated subsidiaries$(64,771)$(22,207)
Interest and Other Investment (Loss) Income, Net
Below are the components of interest and other investment (loss) income, net for the nine months ended September 30, 2020 and 2019.
(Amounts in thousands)For the Nine Months Ended September 30,
20202019
Credit losses on loans receivable(1)
$(13,369)$— 
Interest on cash and cash equivalents and restricted cash5,717 8,753 
Decrease in fair value of marketable securities(2)
(4,938)(3,095)
Interest on loans receivable2,810 4,845 
Dividends on marketable securities— 2,625 
Other, net2,712 2,802 
$(7,068)$15,930 
____________________
(1)See Note 4 - Recently Issued Accounting Literature to the unaudited consolidated financial statements in Part I, Item I of this Quarterly Report on Form 10-Q for additional information.
(2)The nine months ended September 30, 2020 includes a $4,938 mark-to-market decrease in the fair value of our PREIT common shares (sold on January 23, 2020). The nine months ended September 30, 2019 includes (i) a $19,211 decrease in the fair value of our investment in PREIT, partially offset by (ii) a $16,068 mark-to-market increase in the fair value of our Lexington common shares (sold on March 1, 2019).
71


Results of Operations – Nine Months Ended September 30, 2020 Compared to September 30, 2019- continued
Interest and Debt Expense
Interest and debt expense was $174,618,000 for the ninethree months ended September 30, 2020,2021 was $50,946,000 compared to $226,940,000$57,371,000 for the prior year’s nine months,quarter, a decrease of $52,322,000.$6,425,000. This decrease was primarily due to (i) $22,540,000$2,707,000 of lower interest expense relatingdue to lower variable rates on certain mortgage loans that were previously swapped to higher fixed rates under interest rate swap arrangements that expired in 2020, (ii) $1,411,000 of higher capitalized interest and debt prepayment costs relating to the redemption of our $400,000,000 5.00% senior unsecured notes in 2019, (ii) $17,459,000 of lower interest expense resulting from the repayment of the mortgage payable of PENN2,and (iii) $16,210,000$429,000 of lower interest expense resulting from lower average interest rates on our variable rate loans, (iv) $12,530,000 of lower interest expense resulting from the deconsolidation of mortgages payable of the properties contributed to Fifth Avenue and Times Square JV, (v) $7,680,000 of lower interest expense resulting from the paydowns of the 220 CPS loan, and (vi) $5,045,000 of lower interest from the redemption of the $400,000,000 5.00% senior unsecured notes in 2019, partially offset by $28,355,000 of lower capitalized interest and debt expense.
Net Gain on Transfer to Fifth Avenue and Times Square JV
During the nine months ended September 30, 2019, we recognized a $2,571,099,000 net gain from the transfer of common equity in the properties contributed to Fifth Avenue and Times Square JV, including the related step-up in our basis of the retained portion of the assets to fair value.loans.
Net Gains on Disposition of Wholly Owned and Partially Owned Assets
Net gains on disposition of wholly owned and partially owned assets of $338,862,000 for the ninethree months ended September 30, 2020 consisted2021 were $10,087,000 compared to $214,578,000 for the prior year's quarter, a decrease of $204,491,000. This resulted from lower net gains on the sale of 30220 CPS condominium units at 220 CPS. Net gains on disposition of wholly owned and partially owned assets of $641,664,000units.
Income Tax Benefit (Expense)
Income tax benefit for the ninethree months ended September 30, 2019 consisted of (i) $400,500,000 of net gains on the sale of 37 condominium units at 220 CPS, (ii) a $159,292,000 net gain on sale of our 25% interest in 330 Madison Avenue, (iii) a $62,395,000 net gain from the sale of all our UE partnership units, and (iv) a $19,477,000 net gain on sale of 3040 M Street.
Income Tax Expense
Income tax expense for the nine months ended September 30, 20202021 was $38,431,000$25,376,000 compared to $80,542,000an expense of $23,781,000 for the prior year’s nine months,quarter, a decrease in expense of $42,111,000.$49,157,000. This decrease was primarily due to lower income tax expense from the sale of 220 CPS condominium units.units and a higher tax benefit recognized by our taxable REIT subsidiaries in 2021.
Net (Income) Loss (Income) Attributable to Noncontrolling Interests in Consolidated Subsidiaries
Net lossincome attributable to noncontrolling interests in consolidated subsidiaries was $141,003,000$5,425,000 for the ninethree months ended September 30, 2020,2021, compared to incomea loss of $34,045,000$848,000 for the prior year’s nine months,quarter, an increase in income of $6,273,000. This resulted primarily from a decrease in income of $175,048,000. This decrease resulted primarily from the higher allocation of net loss allocated to the noncontrolling interests inof our real estate fund investments. The nine months ended September 30, 2020 includes $4,289,000 allocated to noncontrolling interests for the non-cash impairment loss recognized on our investment in Fifth Avenue and Times Square JV.
Net (Loss) Income Attributable to Noncontrolling Interests in the Operating Partnership (Vornado Realty Trust)
Net lossincome attributable to noncontrolling interests in the Operating Partnership was $10,090,000$2,818,000 for the ninethree months ended September 30, 2020,2021, compared to net income of $197,354,000$3,884,000 for the prior year’s nine months,quarter, a decrease in income of $207,444,000.$1,066,000. This decrease resulted primarily from lower net income subject to allocation to Class A unitholders.
72


Results of Operations – Nine Months Ended September 30, 2020 Compared to September 30, 2019- continued
Preferred Share Dividends of Vornado Realty Trust
Preferred share dividends were $37,591,000$16,800,000 for the ninethree months ended September 30, 2020,2021, compared to $37,598,000$12,530,000 for the prior year’s nine months, a decreasequarter, an increase of $7,000. $4,270,000, primarily due to the issuance of 5.25% Series N cumulative redeemable preferred shares in November 2020.
Preferred Unit Distributions of Vornado Realty L.P.
Preferred unit distributions were $37,715,000$16,842,000 for the three months ended September 30, 2021, compared to $12,572,000 for the prior year’s quarter, an increase of $4,270,000, primarily due to the issuance of 5.25% Series N cumulative redeemable preferred units in November 2020.
Preferred Share/Unit Issuance Costs
Preferred share/unit issuance costs for the three months ended September 30, 2021 were $9,033,000 representing the previously capitalized issuance costs which were expensed upon calling for redemption of all the outstanding Series K cumulative redeemable preferred shares/units in September 2021.
62


Results of Operations – Three Months Ended September 30, 2021 Compared to September 30, 2020 - continued
Same Store Net Operating Income At Share
Same store NOI at share represents NOI at share from operations which are in service in both the current and prior year reporting periods. Same store NOI at share - cash basis is same store NOI at share adjusted to exclude straight-line rental income and expense, amortization of acquired below and above market leases, net and other non-cash adjustments. We present these non-GAAP measures to (i) facilitate meaningful comparisons of the operational performance of our properties and segments, (ii) make decisions on whether to buy, sell or refinance properties, and (iii) compare the performance of our properties and segments to those of our peers. Same store NOI at share and same store NOI at share - cash basis should not be considered alternatives to net income or cash flow from operations and may not be comparable to similarly titled measures employed by other companies.
Below are reconciliations of NOI at share to same store NOI at share for our New York segment, theMART, 555 California Street and other investments for the three months ended September 30, 2021 compared to September 30, 2020.
(Amounts in thousands)TotalNew York
theMART(1)
555 California StreetOther
NOI at share for the three months ended September 30, 2021$255,271 $228,839 $6,431 $16,128 $3,873 
Less NOI at share from:
Change in ownership interest in One Park Avenue(3,780)(3,780)— — — 
Dispositions(224)(224)— — — 
Development properties(5,076)(5,076)— — — 
Other non-same store income, net(6,884)(3,011)— — (3,873)
Same store NOI at share for the three months ended September 30, 2021$239,307 $216,748 $6,431 $16,128 $— 
NOI at share for the three months ended September 30, 2020$220,533 $189,820 $13,171 $15,618 $1,924 
Less NOI at share from:
Dispositions1,797 1,797 — — — 
Development properties(5,509)(5,509)— — — 
Hotel Pennsylvania (permanently closed on April 5, 2021)16,821 16,821 — — — 
Other non-same store (income) expense, net(3,797)(1,811)(102)40 (1,924)
Same store NOI at share for the three months ended September 30, 2020$229,845 $201,118 $13,069 $15,658 $— 
Increase (decrease) in same store NOI at share$9,462 $15,630 $(6,638)$470 $— 
% increase (decrease) in same store NOI at share4.1 %7.8 %(50.8)%3.0 %— %
___________________
(1)2021 includes an increase in real estate tax expense of $12,518 primarily due to a recent increase in the triennial tax-assessed value of theMART.

63


Results of Operations – Three Months Ended September 30, 2021 Compared to September 30, 2020 - continued
Same Store Net Operating Income At Share - continued
Below are reconciliations of NOI at share - cash basis to same store NOI at share - cash basis for our New York segment, theMART, 555 California Street and other investments for the three months ended September 30, 2021 compared to September 30, 2020.
(Amounts in thousands)TotalNew York
theMART(1)
555 California StreetOther
NOI at share - cash basis for the three months ended September 30, 2021$257,193 $229,622 $8,635 $14,745 $4,191 
Less NOI at share - cash basis from:
Change in ownership interest in One Park Avenue(2,695)(2,695)— — — 
Dispositions(678)(678)— — — 
Development properties(5,600)(5,600)— — — 
Other non-same store income, net(6,749)(2,558)— — (4,191)
Same store NOI at share - cash basis for the three months ended September 30, 2021$241,471 $218,091 $8,635 $14,745 $— 
NOI at share - cash basis for the three months ended September 30, 2020$231,514 $196,081 $17,706 $15,530 $2,197 
Less NOI at share - cash basis from:
Dispositions774 774 — — — 
Development properties(8,580)(8,580)— — — 
Hotel Pennsylvania (permanently closed on April 5, 2021)16,829 16,829 — — — 
Other non-same store income, net(5,603)(3,271)(131)(4)(2,197)
Same store NOI at share - cash basis for the three months ended September 30, 2020$234,934 $201,833 $17,575 $15,526 $— 
Increase (decrease) in same store NOI at share - cash basis$6,537 $16,258 $(8,940)$(781)$— 
% increase (decrease) in same store NOI at share - cash basis2.8 %8.1 %(50.9)%(5.0)%— %
___________________
(1)2021 includes an increase in real estate tax expense of $12,518 primarily due to a recent increase in the triennial tax-assessed value of theMART.
64


NOI At Share by Segment for the Nine Months Ended September 30, 2021 and 2020
Below is a summary of NOI at share and NOI at share - cash basisby segment for the nine months ended September 30, 2021 and 2020.
(Amounts in thousands)For the Nine Months Ended September 30, 2021
TotalNew YorkOther
Total revenues$1,168,130 $921,758 $246,372 
Operating expenses(594,598)(468,294)(126,304)
NOI - consolidated573,532 453,464 120,068 
Deduct: NOI attributable to noncontrolling interests in consolidated subsidiaries(50,221)(26,841)(23,380)
Add: NOI from partially owned entities231,635 224,392 7,243 
NOI at share754,946 651,015 103,931 
Non-cash adjustments for straight-line rents, amortization of acquired below-market leases, net and other1,570 351 1,219 
NOI at share - cash basis$756,516 $651,366 $105,150 

(Amounts in thousands)For the Nine Months Ended September 30, 2020
TotalNew YorkOther
Total revenues$1,151,520 $919,388 $232,132 
Operating expenses(600,077)(484,624)(115,453)
NOI - consolidated551,443 434,764 116,679 
Deduct: NOI attributable to noncontrolling interests in consolidated subsidiaries(56,900)(34,713)(22,187)
Add: NOI from partially owned entities229,543 221,296 8,247 
NOI at share724,086 621,347 102,739 
Non-cash adjustments for straight-line rents, amortization of acquired below-market leases, net and other48,247 40,310 7,937 
NOI at share - cash basis$772,333 $661,657 $110,676 

65


NOI At Share by Segment for the Nine Months Ended September 30, 2021 and 2020- continued
The elements of our New York and Other NOI at share for the nine months ended September 30, 2021 and 2020 are summarized below.
(Amounts in thousands)For the Nine Months Ended September 30,
20212020
New York:
Office(1)
$497,238 $504,630 
Retail(2)
124,998 109,153 
Residential12,889 16,604 
Alexander's28,567 25,653 
Hotel Pennsylvania(3)
(12,677)(34,693)
Total New York651,015 621,347 
Other:
theMART(4)
42,950 52,087 
555 California Street48,230 45,686 
Other investments12,751 4,966 
Total Other103,931 102,739 
NOI at share$754,946 $724,086 
___________________
(1)2020 includes $17,588 of non-cash write-offs of receivables arising from the straight-lining of rents, including the New York & Company, Inc. lease at 330 West 34th Street and $6,052 of write-offs of tenant receivables deemed uncollectible.
(2)2020 includes $25,124 of non-cash write-offs of receivables arising from the straight-lining of rents, including the JCPenney lease at Manhattan Mall and $11,399 of write-offs of tenant receivables deemed uncollectible.
(3)On April 5, 2021, we permanently closed the Hotel Pennsylvania. Beginning in the third quarter of 2021, we commenced capitalization of carrying costs in connection with our development of the future PENN 15 (formerly Hotel Pennsylvania) site.
(4)2021 includes an increase in real estate tax expense of $14,441 primarily due to a recent increase in the triennial tax-assessed value of theMART.

The elements of our New York and Other NOI at share - cash basis for the nine months ended September 30, 2021 and 2020 are summarized below.
(Amounts in thousands)For the Nine Months Ended September 30,
20212020
New York:
Office(1)
$504,939 $524,830 
Retail(2)
116,265 124,430 
Residential11,898 15,541 
Alexander's30,987 31,574 
Hotel Pennsylvania(3)
(12,723)(34,718)
Total New York651,366 661,657 
Other:
theMART(4)
45,976 58,176 
555 California Street45,552 45,970 
Other investments13,622 6,530 
Total Other105,150 110,676 
NOI at share - cash basis$756,516 $772,333 
___________________
(1)2020 includes $6,052 of write-offs of tenant receivables deemed uncollectible.
(2)2020 includes $11,399 of write-offs of tenant receivables deemed uncollectible.
(3)On April 5, 2021, we permanently closed the Hotel Pennsylvania. Beginning in the third quarter of 2021, we commenced capitalization of carrying costs in connection with our development of the future PENN 15 (formerly Hotel Pennsylvania) site.
(4)2021 includes an increase in real estate tax expense of $14,441 primarily due to a recent increase in the triennial tax-assessed value of theMART.

66


Reconciliation of Net Income (Loss) to NOI At Share and NOI at share - cash basis for the Nine Months Ended September 30, 2021 and 2020


Below is a reconciliation of net income (loss) to NOI at share and NOI at share - cash basis for the nine months ended September 30, 2021 and 2020.
(Amounts in thousands)For the Nine Months Ended September 30,
20212020
Net income (loss)$175,590 $(253,119)
Depreciation and amortization expense285,998 292,611 
General and administrative expense100,341 120,255 
Impairment losses, transaction related costs and other (lease liability extinguishment gain)10,630 (68,566)
(Income) loss from partially owned entities(86,768)353,679 
(Income) loss from real estate fund investments(5,107)225,328 
Interest and other investment (income) loss, net(3,694)7,068 
Interest and debt expense152,904 174,618 
Net gains on disposition of wholly owned and partially owned assets(35,811)(338,862)
Income tax (benefit) expense(20,551)38,431 
NOI from partially owned entities231,635 229,543 
NOI attributable to noncontrolling interests in consolidated subsidiaries(50,221)(56,900)
NOI at share754,946 724,086 
Non-cash adjustments for straight-line rents, amortization of acquired below-market leases, net and other1,570 48,247 
NOI at share - cash basis$756,516 $772,333 
NOI At Share by Region
For the Nine Months Ended September 30,
20212020
Region:
New York City metropolitan area88 %87 %
Chicago, IL%%
San Francisco, CA%%
100 %100 %


67



Results of Operations – Nine Months Ended September 30, 2021 Compared to September 30, 2020

Revenues
Our revenues were $1,168,130,000 for the nine months ended September 30, 2021, compared to $37,722,000$1,151,520,000 for the prior year’s nine months, an increase of $16,610,000. Below are the details of the increase by segment:
(Amounts in thousands)TotalNew YorkOther
Increase (decrease) due to:
Rental revenues:
Acquisitions, dispositions and other$2,642 $127 $2,515 
Development and redevelopment(15,652)

(15,652)— 
Hotel Pennsylvania(9,368)(1)(9,368)— 
Trade shows1,302 — 1,302 
Same store operations30,471 23,937 6,534 
9,395 (956)10,351 
Fee and other income:
BMS cleaning fees9,752 9,752 — 
Management and leasing fees(5,402)(5,017)(385)
Other income2,865 (1,409)4,274 
7,215 3,326 3,889 
Total increase in revenues$16,610 $2,370 $14,240 
_______________
See notes below.

Expenses
Our expenses were $998,989,000 for the nine months ended September 30, 2021, compared to $943,829,000 for the prior year’s nine months, an increase of $55,160,000. Below are the details of the increaseby segment:
(Amounts in thousands)TotalNew YorkOther
Increase (decrease) due to:
Operating:
Acquisitions, dispositions and other$5,012 $5,012 $— 
Development and redevelopment(10,287)

(10,287)— 
Non-reimbursable expenses5,758 5,949 (191)
Hotel Pennsylvania(30,829)(1)(30,829)— 
Trade shows(1,174)— (1,174)
BMS expenses(150)(150)— 
Same store operations26,191 13,975 12,216 
(5,479)(16,330)10,851 
Depreciation and amortization:
Acquisitions, dispositions and other7,870 7,870 — 
Development and redevelopment(7,234)(7,234)— 
Same store operations(7,249)(5,769)(1,480)
(6,613)(5,133)(1,480)
General and administrative(19,914)(2)(5,195)(14,719)
Expense from deferred compensation plan liability7,970 — 7,970 
(Impairment losses, transaction related costs and other) lease liability extinguishment gain79,196 77,759 (3)1,437 
Total increase in expenses$55,160 $51,101 $4,059 
___________________
(1)On April 5, 2021, we permanently closed the Hotel Pennsylvania. Beginning in the third quarter of 2021, we commenced capitalization of carrying costs in connection with our development of the future PENN 15 (formerly Hotel Pennsylvania) site.
(2)Primarily due to the overhead reduction program previously announced in December 2020.
(3)Primarily due to $70,260 of lease liability extinguishment gain related to 608 Fifth Avenue recognized in the second quarter of 2020 and $7,880 of non-cash impairment losses for the three Manhattan retail properties located at 677-679, 759-771 and 828-850 Madison Avenue, New York sold in the third quarter of 2021.
68


Results of Operations – Nine Months Ended September 30, 2021 Compared to September 30, 2020- continued
Income (Loss) from Partially Owned Entities
Below are the components of income (loss) from partially owned entities for the nine months ended September 30, 2021 and 2020.
(Amounts in thousands)Percentage Ownership at September 30, 2021For the Nine Months Ended September 30,
20212020
Our share of net income (loss):
Fifth Avenue and Times Square JV:
Equity in net income(1)
51.5%$32,314 $13,631 
Return on preferred equity, net of our share of the expense27,985 27,926 
Non-cash impairment loss— (413,349)
60,299 (371,792)
Alexander's(2)
32.4%21,386 11,198 
Partially owned office buildings(3)
Various11,021 8,550 
Other investments(4)
(5,938)(1,635)
$86,768 $(353,679)
_____________________
(1)2021 includes a $14,282 decrease in our share of depreciation and amortization expense compared to the prior year period primarily resulting from non-cash impairment losses recognized during 2020. 2020 includes $2,997 of write-offs of lease receivables deemed uncollectible (see Note 6 -Investments in Partially Owned Entities for details).
(2)On June 4, 2021, Alexander's completed the sale of a parcel of land in the Bronx, New York for $10,000. As a result of the sale, we recognized our $2,956 share of the net gain and also received a $300 sales commission paid by Alexander's. 2020 includes our $4,846 share of write-offs of lease receivables deemed uncollectible.
(3)Includes interests in 280 Park Avenue, 650 Madison Avenue, One Park Avenue (consolidated from August 5, 2021, see Note8 - Acquisitions and Dispositions for details), 7 West 34th Street, 512 West 22nd Street, 61 Ninth Avenue, 85 Tenth Avenue and others.
(4)Includes interests in Independence Plaza, Rosslyn Plaza and others.
Income (Loss) from Real Estate Fund Investments
Below are the components of income (loss) from our real estate fund investments for the nine months ended September 30, 2021 and 2020.
(Amounts in thousands)For the Nine Months Ended September 30,
20212020
Net investment income$5,896 $84 
Net unrealized loss on held investments(789)(225,412)
Income (loss) from real estate fund investments5,107 (225,328)
Less (income) loss attributable to noncontrolling interests in consolidated subsidiaries(2,914)160,557 
Income (loss) from real estate fund investments net of noncontrolling interests in consolidated subsidiaries$2,193 $(64,771)
Interest and Other Investment Income (Loss), Net
Below are the components of interest and other investment income (loss), net for the nine months ended September 30, 2021 and 2020.
(Amounts in thousands)For the Nine Months Ended September 30,
20212020
Interest on loans receivable$1,679 $2,810 
Interest on cash and cash equivalents and restricted cash207 5,717 
Credit losses on loans receivable— (13,369)
Market-to-market decrease in the fair value of marketable security (sold on January 23, 2020)— (4,938)
Other, net1,808 2,712 
$3,694 $(7,068)

69


Results of Operations – Nine Months Ended September 30, 2021 Compared to September 30, 2020- continued
Interest and Debt Expense
Interest and debt expense was $152,904,000 for the nine months ended September 30, 2021, compared to $174,618,000 for the prior year’s nine months, a decrease of $7,000. $21,714,000. This was primarily due to (i) $9,195,000 of lower interest expense resulting from lower average interest rates on our variable rate loans, (ii) $8,950,000 of lower interest expense due to variable rates on certain mortgage loans that were previously swapped to higher fixed rates under interest rate swap arrangements that expired in 2020, and (iii) $956,000 of higher capitalized interest.
Net Gains on Disposition of Wholly Owned and Partially Owned Assets
Net gains on disposition of wholly owned and partially owned assets for the nine months ended September 30, 2021 were $35,811,000 compared to $338,862,000 for the prior year's nine months, a decrease of $303,051,000. This resulted from lower net gains on sale of 220 CPS condominium units.
Income Tax Benefit (Expense)
Income tax benefit for the nine months ended September 30, 2021 was $20,551,000 compared to an expense of $38,431,000 for the prior year’s nine months, a decrease in expense of $58,982,000. This was primarily due to lower income tax expense from the sale of 220 CPS condominium units and a higher tax benefit recognized by our taxable REIT subsidiaries in 2021.
Net (Income) Loss Attributable to Noncontrolling Interests in Consolidated Subsidiaries
Net income attributable to noncontrolling interests in consolidated subsidiaries was $20,323,000 for the nine months ended September 30, 2021, compared to a loss of $141,003,000 for the prior year’s nine months, an increase in income of $161,326,000. This resulted primarily from a decrease in net loss allocated to the noncontrolling interests of our real estate fund investments.
Net (Income) Loss Attributable to Noncontrolling Interests in the Operating Partnership (Vornado Realty Trust)
Net income attributable to noncontrolling interests in the Operating Partnership was $6,683,000 for the nine months ended September 30, 2021, compared to a loss of $10,090,000 for the prior year’s nine months, an increase in income of $16,773,000. This resulted primarily from higher net income subject to allocation to Class A unitholders.
Preferred Share Dividends of Vornado Realty Trust
Preferred share dividends were $49,734,000 for the nine months ended September 30, 2021, compared to $37,591,000 for the prior year’s nine months, an increase of $12,143,000, primarily due to the issuance of 5.25% Series N cumulative redeemable preferred shares in November 2020.
Preferred Unit Distributions of Vornado Realty L.P.
Preferred unit distributions were $49,858,000 for the nine months ended September 30, 2021, compared to $37,715,000 for the prior year’s nine months, an increase of $12,143,000, primarily due to the issuance of 5.25% Series N cumulative redeemable preferred units in November 2020. 
Preferred Share/Unit Issuance Costs
Preferred share/unit issuance costs for the nine months ended September 30, 2021 were $9,033,000 representing the previously capitalized issuance costs which were expensed upon calling for redemption of all the outstanding Series K cumulative redeemable preferred shares/units in September 2021.
70


Results of Operations – Nine Months Ended September 30, 2021 Compared to September 30, 2020- continued
Same Store Net Operating Income At Share
Below are reconciliations of NOI at share to same store NOI at share for our New York segment, theMART, 555 California Street and other investments for the nine months ended September 30, 20202021 compared to September 30, 2019.2020.
(Amounts in thousands)TotalNew YorktheMART555 California StreetOther
NOI at share for the nine months ended September 30, 2020$724,086 $621,347 $52,087 $45,686 $4,966 
Less NOI at share from:
Development properties(25,935)(25,935)— — — 
Hotel Pennsylvania (closed beginning April 1, 2020)25,337 25,337 — — — 
Other non-same store (income) expense, net(20,796)(15,480)(524)174 (4,966)
Same store NOI at share for the nine months ended September 30, 2020$702,692 $605,269 $51,563 $45,860 $— 
NOI at share for the nine months ended September 30, 2019$954,211 $806,544 $79,359 $45,124 $23,184 
Less NOI at share from:
Change in ownership interests in properties contributed to Fifth Avenue and Times Square JV(35,770)(35,770)— — — 
Dispositions(7,358)(7,358)— — — 
Development properties(53,439)(53,439)— — — 
Hotel Pennsylvania (closed beginning April 1, 2020)(7,043)(7,043)— 
Other non-same store (income) expense, net(26,762)(3,795)(180)397 (23,184)
Same store NOI at share for the nine months ended September 30, 2019$823,839 $699,139 $79,179 $45,521 $— 
(Decrease) increase in same store NOI at share for the nine months ended September 30, 2020 compared to September 30, 2019$(121,147)$(93,870)$(27,616)$339 $— 
% (decrease) increase in same store NOI at share(14.7)%(13.4)%(34.9)%0.7 %— %
(Amounts in thousands)TotalNew York
theMART(1)
555 California StreetOther
NOI at share for the nine months ended September 30, 2021$754,946 $651,015 $42,950 $48,230 $12,751 
Less NOI at share from:
Change in ownership interest in One Park Avenue(3,780)(3,780)— — — 
Dispositions1,246 1,246 — — — 
Development properties(19,136)(19,136)— — — 
Hotel Pennsylvania (permanently closed on April 5, 2021)12,677 12,677 — — — 
Other non-same store (income) expense, net(17,104)(4,354)— (12,751)
Same store NOI at share for the nine months ended September 30, 2021$728,849 $637,668 $42,950 $48,231 $— 
NOI at share for the nine months ended September 30, 2020$724,086 $621,347 $52,087 $45,686 $4,966 
Less NOI at share from:
Dispositions5,109 5,109 — — — 
Development properties(26,259)(26,259)— — — 
Hotel Pennsylvania (permanently closed on April 5, 2021)34,692 34,692 — — — 
Other non-same store (income) expense, net(22,389)(17,054)(422)53 (4,966)
Same store NOI at share for the nine months ended September 30, 2020$715,239 $617,835 $51,665 $45,739 $— 
Increase (decrease) in same store NOI at share$13,610 $19,833 $(8,715)$2,492 $— 
% increase (decrease) in same store NOI at share1.9 %3.2 %(16.9)%5.4 %— %
___________________
(1)2021 includes an increase in real estate tax expense of $14,441 primarily due to a recent increase in the triennial tax-assessed value of theMART.

7371


Results of Operations – Nine Months Ended September 30, 20202021 Compared to September 30, 2019 2020- continued
Same Store Net Operating Income At Share - continued
    Below are reconciliations of NOI at share - cash basis to same store NOI at share - cash basis for our New York segment, theMART, 555 California Street and other investments for the nine months ended September 30, 20202021 compared to September 30, 2019.2020.
(Amounts in thousands)(Amounts in thousands)TotalNew YorktheMART555 California StreetOther(Amounts in thousands)TotalNew York
theMART(1)
555 California StreetOther
NOI at share - cash basis for the nine months ended September 30, 2021NOI at share - cash basis for the nine months ended September 30, 2021$756,516 $651,366 $45,976 $45,552 $13,622 
Less NOI at share - cash basis from:Less NOI at share - cash basis from:
Change in ownership interest in One Park AvenueChange in ownership interest in One Park Avenue(2,695)(2,695)— — — 
DispositionsDispositions1,545 1,545 — — — 
Development propertiesDevelopment properties(20,332)(20,332)— — — 
Hotel Pennsylvania (permanently closed on April 5, 2021)Hotel Pennsylvania (permanently closed on April 5, 2021)12,724 12,724 — — — 
Other non-same store (income) expense, netOther non-same store (income) expense, net(17,859)(4,238)— (13,622)
Same store NOI at share - cash basis for the nine months ended September 30, 2021Same store NOI at share - cash basis for the nine months ended September 30, 2021$729,899 $638,370 $45,976 $45,553 $— 
NOI at share - cash basis for the nine months ended September 30, 2020NOI at share - cash basis for the nine months ended September 30, 2020$772,333 $661,657 $58,176 $45,970 $6,530 NOI at share - cash basis for the nine months ended September 30, 2020$772,333 $661,657 $58,176 $45,970 $6,530 
Less NOI at share - cash basis from:
Development properties(35,338)(35,338)— — — 
Hotel Pennsylvania (closed beginning April 1, 2020)25,354 25,354 — — — 
Other non-same store (income) expense, net(31,287)(24,222)(553)18 (6,530)
Less NOI at share - cash basis from:Less NOI at share - cash basis from:
DispositionsDispositions(718)(718)— — — 
Development propertiesDevelopment properties(35,372)(35,372)— — — 
Hotel Pennsylvania (permanently closed on April 5, 2021)Hotel Pennsylvania (permanently closed on April 5, 2021)34,718 34,718 — — — 
Other non-same store income, netOther non-same store income, net(32,745)(25,690)(422)(103)(6,530)
Same store NOI at share - cash basis for the nine months ended September 30, 2020Same store NOI at share - cash basis for the nine months ended September 30, 2020$731,062 $627,451 $57,623 $45,988 $— Same store NOI at share - cash basis for the nine months ended September 30, 2020$738,216 $634,595 $57,754 $45,867 $— 
NOI at share - cash basis for the nine months ended September 30, 2019$954,741 $802,803 $83,484 $45,665 $22,789 
Less NOI at share - cash basis from:
Change in ownership interests in properties contributed to Fifth Avenue and Times Square JV(32,905)(32,905)— — — 
Dispositions(8,153)(8,153)— — — 
Development properties(71,547)(71,547)— — — 
Hotel Pennsylvania (closed beginning April 1, 2020)(6,947)(6,947)— — — 
Other non-same store (income) expense, net(43,004)(19,946)(519)250 (22,789)
Same store NOI at share - cash basis for the nine months ended September 30, 2019$792,185 $663,305 $82,965 $45,915 $— 
(Decrease) increase in same store NOI at share - cash basis for the nine months ended September 30, 2020 compared to September 30, 2019$(61,123)$(35,854)$(25,342)$73 $— 
(Decrease) increase in same store NOI at share - cash basis(Decrease) increase in same store NOI at share - cash basis$(8,317)$3,775 $(11,778)$(314)$— 
% (decrease) increase in same store NOI at share - cash basis% (decrease) increase in same store NOI at share - cash basis(7.7)%(5.4)%(30.5)%0.2 %— %% (decrease) increase in same store NOI at share - cash basis(1.1)%0.6 %(20.4)%(0.7)%— %
___________________
(1)2021 includes an increase in real estate tax expense of $14,441 primarily due to a recent increase in the triennial tax-assessed value of theMART.

7472



SUPPLEMENTAL INFORMATION
NOI At Share by Segment for the Three Months Ended September 30, 2020 and June 30, 2020
Below is a summary of NOIat share and NOI at share - cash basis for the three months ended September 30, 2020 and June 30, 2020 by segment.
(Amounts in thousands)For the Three Months Ended September 30, 2020
TotalNew YorkOther
Total revenues$363,962 $293,145 $70,817 
Operating expenses(195,645)(161,386)(34,259)
NOI - consolidated168,317 131,759 36,558 
Deduct: NOI attributable to noncontrolling interests in consolidated subsidiaries(25,959)(17,776)(8,183)
Add: NOI from partially owned entities78,175 75,837 2,338 
NOI at share220,533 189,820 30,713 
Non-cash adjustments for straight-line rents, amortization of acquired below-market leases, net, and other10,981 6,261 4,720 
NOI at share - cash basis$231,514 $196,081 $35,433 
(Amounts in thousands)For the Three Months Ended June 30, 2020
TotalNew YorkOther
Total revenues$343,026 $270,628 $72,398 
Operating expenses(174,425)(140,207)(34,218)
NOI - consolidated168,601 130,421 38,180 
Deduct: NOI attributable to noncontrolling interests in consolidated subsidiaries(15,448)(8,504)(6,944)
Add: NOI from partially owned entities69,487 67,051 2,436 
NOI at share222,640 188,968 33,672 
Non-cash adjustments for straight-line rents, amortization of acquired below-market leases, net, and other34,190 32,943 1,247 
NOI at share - cash basis$256,830 $221,911 $34,919 

75



SUPPLEMENTAL INFORMATION - CONTINUED
NOI At Share by Segment for the Three Months Ended September 30, 2020 and June 30, 2020 - continued
The elements of our New York and Other NOI at share for the three months ended September 30, 2020 and June 30, 2020 are summarized below.
(Amounts in thousands)For the Three Months Ended
September 30, 2020June 30, 2020
New York:
Office(1)
$159,981 $161,444 
Retail(2)
35,294 21,841 
Residential4,536 5,868 
Alexander's6,830 8,331 
Hotel Pennsylvania(3)
(16,821)(8,516)
Total New York189,820 188,968 
Other:
theMART(4)
13,171 17,803 
555 California Street15,618 14,837 
Other investments1,924 1,032 
Total Other30,713 33,672 
NOI at share$220,533 $222,640 
___________________
(1)The three months ended September 30, 2020 includes $5,112 of write-offs of tenant receivables deemed uncollectible and $4,368 of non-cash write-offs of receivables arising from the straight-lining of rents.The three months ended June 30, 2020 includes $13,220 of non-cash write-offs of receivables arising from the straight-lining of rents, primarily for the New York & Company, Inc. lease at 330 West 34th Street, and $940 of write-offs of tenant receivables deemed uncollectible.
(2)The three months ended September 30, 2020 includes $4,688 of non-cash write-offs of receivables arising from the straight-lining of rents and $4,668 of write-offs of tenant receivables deemed uncollectible. The three months ended June 30, 2020 includes $20,436 of non-cash write-offs of receivables arising from the straight-lining of rents, primarily for the JCPenney lease at Manhattan Mall, and $6,731 of write-offs of tenant receivables deemed uncollectible.
(3)The Hotel Pennsylvania has been closed since April 1, 2020 as a result of the COVID-19 pandemic. The three months ended September 30, 2020 includes a $9,246 severance accrual for furloughed union employees.
(4)The decrease in NOI at share is primarily due to the effects of the COVID-19 pandemic, causing trade shows to be cancelled from late March 2020 through the remainder of the year.
The elements of our New York and Other NOI at share - cash basis for the three months ended September 30, 2020 and June 30, 2020 are summarized below.
(Amounts in thousands)For the Three Months Ended
September 30, 2020June 30, 2020
New York:
Office(1)
$162,357 $175,438 
Retail(2)
36,476 38,913 
Residential4,178 5,504 
Alexander's9,899 10,581 
Hotel Pennsylvania(3)
(16,829)(8,525)
Total New York196,081 221,911 
Other:
theMART(4)
17,706 17,765 
555 California Street15,530 15,005 
Other investments2,197 2,149 
Total Other35,433 34,919 
NOI at share - cash basis$231,514 $256,830 
___________________
(1)Includes $5,112 and $940, respectively, of write-offs of tenant receivables deemed uncollectible.
(2)Includes $4,668 and $6,731, respectively, of write-offs of tenant receivables deemed uncollectible.
(3)The Hotel Pennsylvania has been closed since April 1, 2020 as a result of the COVID-19 pandemic. The three months ended September 30, 2020 includes a $9,246 severance accrual for furloughed union employees.
(4)The decrease in NOI at share - cash basis is primarily due to the effects of the COVID-19 pandemic, causing trade shows to be cancelled from late March 2020 through the remainder of the year.
76



SUPPLEMENTAL INFORMATION - CONTINUED
Reconciliation of Net Income (Loss) to NOI At Share and NOI At Share - Cash Basis for the Three Months Ended September 30, 2020 and June 30, 2020
Below is a reconciliation of net income (loss) to NOI at share and NOI at share - cash basis for the three months ended September 30, 2020 and June 30, 2020.
(Amounts in thousands)For the Three Months Ended
September 30, 2020June 30, 2020
Net income (loss)$68,736 $(217,352)
Depreciation and amortization expense107,013 92,805 
General and administrative expense32,407 35,014 
Expense from transaction related costs and impairment losses and (gain from lease liability extinguishment), net584 (69,221)
Loss from partially owned entities80,909 291,873 
Loss from real estate fund investments13,823 28,042 
Interest and other investment (income) loss, net(1,729)2,893 
Interest and debt expense57,371 58,405 
Net gains on disposition of wholly owned and partially owned assets(214,578)(55,695)
Income tax expense23,781 1,837 
NOI from partially owned entities78,175 69,487 
NOI attributable to noncontrolling interests in consolidated subsidiaries(25,959)(15,448)
NOI at share220,533 222,640 
Non cash adjustments for straight-line rents, amortization of acquired below-market leases, net and other10,981 34,190 
NOI at share - cash basis$231,514 $256,830 
Three Months Ended September 30, 2020 Compared to June 30, 2020
Same Store Net Operating Income At Share
Below are reconciliations of NOI at share to same store NOI at share for our New York segment, theMART, 555 California Street and other investments for the three months ended September 30, 2020 compared to June 30, 2020.
(Amounts in thousands)TotalNew YorktheMART555 California StreetOther
NOI at share for the three months ended September 30, 2020$220,533 $189,820 $13,171 $15,618 $1,924 
Less NOI at share from:
Development properties(4,284)(4,288)— — 
Hotel Pennsylvania (closed beginning April 1, 2020)16,821 16,821 — — — 
Other non-same store (income) expense, net(2,958)(1,003)(102)71 (1,924)
Same store NOI at share for the three months ended September 30, 2020$230,112 $201,350 $13,069 $15,693 $— 
NOI at share for the three months ended June 30, 2020$222,640 $188,968 $17,803 $14,837 $1,032 
Less NOI at share from:
Development properties(7,380)(7,376)— (4)— 
Hotel Pennsylvania (closed beginning April 1, 2020)8,516 8,516 — — — 
Other non-same store income, net(9,010)(7,920)— (58)(1,032)
Same store NOI at share for the three months ended June 30, 2020$214,766 $182,188 $17,803 $14,775 $— 
Increase (decrease) in same store NOI at share for the three months ended September 30, 2020 compared to June 30, 2020$15,346 $19,162 $(4,734)$918 $— 
% increase (decrease) in same store NOI at share7.1 %10.5 %(26.6)%6.2 %— %
77



SUPPLEMENTAL INFORMATION - CONTINUED
Three Months Ended September 30, 2020 Compared to June 30, 2020 - continued
Same Store Net Operating Income At Share - continued
    Below are reconciliations of NOI at share - cash basis to same store NOI at share - cash basis for our New York segment, theMART, 555 California Street and other investments for the three months ended September 30, 2020 compared to June 30, 2020.
(Amounts in thousands)TotalNew YorktheMART555 California StreetOther
NOI at share - cash basis for the three months ended September 30, 2020$231,514 $196,081 $17,706 $15,530 $2,197 
Less NOI at share - cash basis from:
Development properties(7,729)(7,733)— — 
Hotel Pennsylvania (closed beginning April 1, 2020)16,829 16,829 — — — 
Other non-same store (income) expense, net(4,846)(2,546)(131)28 (2,197)
Same store NOI at share - cash basis for the three months ended September 30, 2020$235,768 $202,631 $17,575 $15,562 $— 
NOI at share - cash basis for the three months ended June 30, 2020$256,830 $221,911 $17,765 $15,005 $2,149 
Less NOI at share - cash basis from:
Development properties(9,478)(9,474)— (4)— 
Hotel Pennsylvania (closed beginning April 1, 2020)8,525 8,525 — — — 
Other non-same store (income) expense, net(12,772)(10,670)— 47 (2,149)
Same store NOI at share - cash basis for the three months ended June 30, 2020$243,105 $210,292 $17,765 $15,048 $— 
(Decrease) increase in same store NOI at share - cash basis for the three months ended September 30, 2020 compared to June 30, 2020$(7,337)$(7,661)$(190)$514 $— 
% (decrease) increase in same store NOI at share - cash basis(3.0)%(3.6)%(1.1)%3.4 %— %
78


Liquidity and Capital Resources
Rental revenue is our primary source of cash flow and is dependent upon the occupancy and rental rates of our properties. Our cash requirements include property operating expenses, capital improvements, tenant improvements, debt service, leasing commissions, dividends to shareholders and distributions to unitholders of the Operating Partnership, as well as acquisition and development costs. During 2020, weWe have experienced a decrease in cash flow from operations due to the COVID-19 pandemic, including reduced collections of rents billed to certain of our tenants, the closure of Hotel Pennsylvania, the cancellation of trade shows at theMART, through 2020, and lower revenues from BMS, parking garages and signage. For the quarter ended September 30, 2020, we collected 93% (95% including rent deferrals) of rent due from our tenants, comprised of 95% (97% including rent deferrals) from our office tenants and 82% (85% including rent deferrals) from our retail tenants. Rent deferrals generally require repayment in monthly installments over a period not to exceed twelve months. While we believe that our tenants are required to pay rent under their leases and we have implementedcommenced legal proceedings against certain tenants that have failed to pay under their leases, in limited circumstances, we have agreed to and willmay continue to consideragree to rent deferrals on a case-by-case basis.and rent abatements for certain of our tenants. Other sources of liquidity to fund cash requirements include proceeds from debt financings, including mortgage loans, senior unsecured borrowings, unsecured term loans and unsecured revolving credit facilities; proceeds from the issuance of common and preferred equity; and asset sales.
As of September 30, 2020,2021, we have $3.7$4.5 billion of liquidity comprised of $1.5$2.3 billion of cash and cash equivalents and restricted cash and $2.2$2.162 billion available on our $2.75 billion revolving credit facilities. The challenges posed by the COVID-19 pandemic could adversely impact our cash flow from continuing operations but we anticipate that cash flow from continuing operations over the next twelve months together with cash balances on hand will be adequate to fund our business operations, cash distributions to unitholders of the Operating Partnership, cash dividends to shareholders, debt amortization and recurring capital expenditures. Capital requirements for development expenditures and acquisitions may require funding from borrowings, equity offerings and/or equity offerings.asset sales. Consequently, the Company will continue to evaluate its liquidity and financial position on an ongoing basis.
During the third quarter of 2020, we closed on the sale of 19 condominium units at 220 Central Park South for net proceeds of $591,104,000; and in October 2020, we closed on the sale of four condominium units for net proceeds of $105,000,000.
We may from time to time purchase retire or redeem ourretire outstanding debt securities or redeem our equity securities. Such purchases, if any, will depend on prevailing market conditions, liquidity requirements and other factors. The amounts involved in connection with these transactions could be material to our consolidated financial statements.
7973


Liquidity and Capital Resources - continued
Cash Flows for the Nine Months Ended September 30, 20202021 and 20192020
Our cash flow activities are summarized as follows:
(Amounts in thousands)(Amounts in thousands)For the Nine Months Ended September 30,(Decrease) Increase in Cash Flow(Amounts in thousands)For the Nine Months Ended September 30,Increase (Decrease) in Cash Flow
20202019 20212020
Net cash provided by operating activitiesNet cash provided by operating activities$191,360 $397,971 $(206,611)Net cash provided by operating activities$478,103 $191,360 $286,743 
Net cash provided by investing activities123,415 2,228,548 (2,105,133)
Net cash used in financing activities(431,568)(2,097,868)1,666,300 
Net cash (used in) provided by investing activitiesNet cash (used in) provided by investing activities(392,634)123,415 (516,049)
Net cash provided by (used in) financing activitiesNet cash provided by (used in) financing activities452,359 (431,568)883,927 
Cash and cash equivalents and restricted cash was $1,490,338,000$2,268,197,000 as of September 30, 2020,2021, a $116,793,000 decrease$537,828,000 increase from the balance as of December 31, 2019.2020.
Net cash provided by operating activities of $191,360,000$478,103,000 for the nine months ended September 30, 20202021 was comprised of $488,827,000$574,067,000 of cash from operations, including distributions of income from partially owned entities of $132,850,000,$171,367,000, and a net decrease of $297,467,000$95,964,000 in cash due to the timing of cash receipts and payments related to changes in operating assets and liabilities.
The following table details the net cash (used in) provided by investing activities:
(Amounts in thousands)(Amounts in thousands)For the Nine Months Ended September 30,(Decrease) Increase in Cash Flow(Amounts in thousands)For the Nine Months Ended September 30,Increase (Decrease) in Cash Flow
2020201920212020
Development costs and construction in progressDevelopment costs and construction in progress$(444,645)$(448,167)$3,522 
Acquisition of additional 45.0% ownership interest in One Park Avenue (inclusive of $5,806 of prorations and net working capital and net of $39,370 of cash and restricted cash balances consolidated upon acquisition)Acquisition of additional 45.0% ownership interest in One Park Avenue (inclusive of $5,806 of prorations and net working capital and net of $39,370 of cash and restricted cash balances consolidated upon acquisition)(123,936)— (123,936)
Additions to real estateAdditions to real estate(113,374)(112,906)(468)
Distributions of capital from partially owned entitiesDistributions of capital from partially owned entities106,005 1,090 104,915 
Proceeds from sales of real estateProceeds from sales of real estate100,024 — 100,024 
Proceeds from sale of condominium units at 220 Central Park SouthProceeds from sale of condominium units at 220 Central Park South$939,292 $1,039,493 $(100,201)Proceeds from sale of condominium units at 220 Central Park South97,683 939,292 (841,609)
Development costs and construction in progress(448,167)(448,281)114 
Investments in partially owned entitiesInvestments in partially owned entities(12,366)(6,156)(6,210)
Acquisitions of real estate and otherAcquisitions of real estate and other(3,000)(985)(2,015)
Proceeds from repayments of loans receivableProceeds from repayments of loans receivable975 — 975 
Moynihan Train Hall expendituresMoynihan Train Hall expenditures(277,128)(352,211)75,083 Moynihan Train Hall expenditures— (277,128)277,128 
Additions to real estate(112,906)(189,579)76,673 
Proceeds from sales of marketable securitiesProceeds from sales of marketable securities28,375 168,314 (139,939)Proceeds from sales of marketable securities— 28,375 (28,375)
Investments in partially owned entities(6,156)(16,480)10,324 
Distributions of capital from partially owned entities1,090 24,880 (23,790)
Acquisitions of real estate and other(985)(3,260)2,275 
Proceeds from transfer of interest in Fifth Avenue and Times Square JV (net of $35,562 of transaction costs and $10,899 of deconsolidated cash and restricted cash)— 1,248,743 (1,248,743)
Proceeds from redemption of 640 Fifth Avenue preferred equity— 500,000 (500,000)
Proceeds from sale of real estate and related investments— 255,534 (255,534)
Proceeds from repayments of loans receivable— 1,395 (1,395)
Net cash provided by investing activities$123,415 $2,228,548 $(2,105,133)
Net cash (used in) provided by investing activitiesNet cash (used in) provided by investing activities$(392,634)$123,415 $(516,049)
The following table details the net cash used inprovided by (used in) financing activities:
(Amounts in thousands)(Amounts in thousands)For the Nine Months Ended September 30,(Decrease) Increase in Cash Flow(Amounts in thousands)For the Nine Months Ended September 30,Increase (Decrease) in Cash Flow
2020201920212020
Dividends paid on common shares/Distributions to Vornado$(725,938)$(377,750)$(348,188)
Proceeds from borrowingsProceeds from borrowings555,918 1,107,852 (551,934)Proceeds from borrowings$2,298,007 $555,918 $1,742,089 
Repayments of borrowingsRepayments of borrowings(514,493)(2,635,028)2,120,535 Repayments of borrowings(1,578,843)(514,493)(1,064,350)
Moynihan Train Hall reimbursement from Empire State Development277,128 352,211 (75,083)
Contributions from noncontrolling interests in consolidated subsidiaries98,626 9,223 89,403 
Dividends paid on common shares/Distributions to VornadoDividends paid on common shares/Distributions to Vornado(304,516)(725,938)421,422 
Proceeds from the issuance of preferred shares/unitsProceeds from the issuance of preferred shares/units291,195 — 291,195 
Distributions to redeemable security holders and noncontrolling interests in consolidated subsidiariesDistributions to redeemable security holders and noncontrolling interests in consolidated subsidiaries(76,759)(65,084)(11,675)Distributions to redeemable security holders and noncontrolling interests in consolidated subsidiaries(173,356)(76,759)(96,597)
Dividends paid on preferred shares/Distributions to preferred unitholdersDividends paid on preferred shares/Distributions to preferred unitholders(50,123)(37,598)(12,525)Dividends paid on preferred shares/Distributions to preferred unitholders(49,400)(50,123)723 
Debt issuance costsDebt issuance costs(33,935)(1,357)(32,578)
Contributions from noncontrolling interests in consolidated subsidiariesContributions from noncontrolling interests in consolidated subsidiaries2,657 98,626 (95,969)
Proceeds received from exercise of Vornado stock options and otherProceeds received from exercise of Vornado stock options and other5,567 2,403 3,164 Proceeds received from exercise of Vornado stock options and other664 5,567 (4,903)
Debt issuance costs(1,357)(15,328)13,971 
Repurchase of shares/Class A units related to stock compensation agreements and related tax withholdings and otherRepurchase of shares/Class A units related to stock compensation agreements and related tax withholdings and other(137)(8,692)8,555 Repurchase of shares/Class A units related to stock compensation agreements and related tax withholdings and other(114)(137)23 
Purchase of marketable securities in connection with defeasance of mortgage payable— (407,126)407,126 
Prepayment penalty on redemption of senior unsecured notes due 2022— (22,058)22,058 
Redemption of preferred shares/units— (893)893 
Net cash used in financing activities$(431,568)$(2,097,868)$1,666,300 
Moynihan Train Hall reimbursement from Empire State DevelopmentMoynihan Train Hall reimbursement from Empire State Development— 277,128 (277,128)
Net cash provided by (used in) financing activitiesNet cash provided by (used in) financing activities$452,359 $(431,568)$883,927 
8074


Liquidity and Capital Resources - continued
Capital Expenditures for the Nine Months Ended September 30, 20202021
Capital expenditures consist of expenditures to maintain assets, tenant improvement allowances and leasing commissions. Recurring capital expenditures include expenditures to maintain a property’s competitive position within the market and tenant improvements and leasing commissions necessary to re-lease expiring leases or renew or extend existing leases. Non-recurring capital improvements include expenditures to lease space that has been vacant for more than nine months and expenditures completed in the year of acquisition and the following two years that were planned at the time of acquisition, as well as tenant improvements and leasing commissions for space that was vacant at the time of acquisition of a property.
Below is a summary of amounts paid for capital expenditures and leasing commissions for the nine months ended September 30, 2020.2021.
(Amounts in thousands)(Amounts in thousands)TotalNew YorktheMART555 California
Street
(Amounts in thousands)TotalNew YorktheMART555 California
Street
Expenditures to maintain assetsExpenditures to maintain assets$46,771 $39,920 $5,674 $1,177 Expenditures to maintain assets$51,370 $42,718 $3,595 $5,057 
Tenant improvementsTenant improvements45,150 38,900 4,041 2,209 Tenant improvements51,615 46,182 4,302 1,131 
Leasing commissionsLeasing commissions15,569 11,624 3,173 772 Leasing commissions19,126 10,309 1,997 6,820 
Recurring tenant improvements, leasing commissions and other capital expendituresRecurring tenant improvements, leasing commissions and other capital expenditures107,490 90,444 12,888 4,158 Recurring tenant improvements, leasing commissions and other capital expenditures122,111 99,209 9,894 13,008 
Non-recurring capital expendituresNon-recurring capital expenditures61,171 60,961 210 — Non-recurring capital expenditures9,915 9,857 58 — 
Total capital expenditures and leasing commissionsTotal capital expenditures and leasing commissions$168,661 $151,405 $13,098 $4,158 Total capital expenditures and leasing commissions$132,026 $109,066 $9,952 $13,008 
Development and Redevelopment Expenditures for the Nine Months Ended September 30, 20202021
Development and redevelopment expenditures consist of all hard and soft costs associated with the development or redevelopment of a property, including capitalized interest, debt and operating costs until the property is substantially completed and ready for its intended use. property.Our development project estimates below include initial leasing costs, which are reflected as non-recurring capital expenditures in the table above.
220 CPS
We are completing construction of a residential condominium tower containing 397,000 salable square feet at 220 CPS. The development cost of this project (exclusive of land cost) is estimated to be approximately $1.450 billion, of which $1.436 billion has been expended as of September 30, 2020.
PENN District
Farley
Our 95% joint venture (5% is owned by the Related Companies ("Related")) is developing Farley Office and Retail, which will include approximately 844,000 rentable square feet of commercial space, comprised of approximately 730,000 square feet of office space and approximately 114,000 square feet of restaurant and retail space. The total development cost of this project is estimated to be approximately $1,120,000,000. As of September 30, 2021, $906,389,000 has been expended, which has been reduced by $88,000,000 of historic tax credit investor contributions (at our share).
PENN 1
We are redeveloping PENN1,PENN 1, a 2,545,0002,547,000 square foot office building located on 34th Street between Seventh and Eighth Avenue. In December 2020, we entered into an agreement with the Metropolitan Transportation Authority (the “MTA”) to oversee the redevelopment of the Long Island Rail Road Concourse at Penn Station (the "Concourse"), within the footprint of PENN 1. Skanska USA Civil Northeast, Inc. will perform the redevelopment under a fixed price contract for $396,000,000 which is being funded by the MTA. In connection with the redevelopment, we entered into an agreement with the MTA which will result in the widening of the Concourse to relieve overcrowding and our trading of 15,000 square feet of back of house space for 22,000 square feet of retail frontage space. The total development cost of thisour PENN 1 project is estimated to be $325,000,000,of which $137,048,000 has been expended as$450,000,000. As of September 30, 2020.2021, $304,667,000 has been expended.
PENN 2
We are redeveloping PENN2,PENN 2, a 1,795,000 square foot (as expanded) office building located on the west side of Seventh Avenue between 31st and 33rd Street. The development cost of this project is estimated to be $750,000,000, of which $80,684,000$141,216,000 has been expended as of September 30, 20202021.
PENN 15 (Hotel Pennsylvania Site)
We have permanently closed the Hotel Pennsylvania and plan to develop an office tower on the site. Demolition of the existing building structure will commence in the fourth quarter of 2021.
We are also making districtwide improvements within the PennPENN District. The development cost of these improvements is estimated to be $100,000,000, of which $15,538,000$30,805,000 has been expended as of September 30, 2020.2021.
Our 95% joint venture is developing Farley Office and Retail (the "Project"), which will include approximately 844,000 rentable square feet of commercial space, comprised of approximately 730,000 square feet of office space and approximately 114,000 square feet of retail space. The total development cost of the Project is estimated to be approximately $1,030,000,000. As of September 30, 2020, $736,155,000 has been expended, which has been reduced by $88,000,000 of historic tax credit investor contributions (at our share).
The joint venture has entered into a development agreement with Empire State Development (“ESD”), an entity of New York State, to build the adjacent Moynihan Train Hall, with Vornado and Related each guaranteeing the joint venture's obligations. The joint venture has entered into a design-build contract with Skanska Moynihan Train Hall Builders pursuant to which they will build the Moynihan Train Hall, thereby fulfilling all of the joint venture's obligations to ESD. The obligations of Skanska Moynihan Train Hall Builders have been bonded by Skanska USA and bear a full guaranty from Skanska AB. The development expenditures for the Moynihan Train Hall are estimated to be approximately $1.6 billion, which will be funded by governmental agencies.
On December 19, 2019, we paid Kmart Corporation $34,000,000, of which $10,000,000 is expected to be reimbursed, to early terminate their 141,000 square foot retail space lease at PENN1 which was scheduled to expire in January 2036.
We entered into a development agreement with the Metropolitan Transportation Authority to oversee the development of the Long Island Rail Road 33rd Street entrance at Penn Station which Skanska USA Civil Northeast, Inc. will construct under a fixed price contract for $126,197,000.
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Liquidity and Capital Resources - continued
Development and Redevelopment Expenditures for the Nine Months Ended September 30, 2020 - continued
Other
We are redeveloping a 78,000 square foot Class A office building at 345 Montgomery Street, a part of our 555 California Street complex in San Francisco (70.0% interest) located at the corner of California and Pine Street. The development cost of this project is estimated to be approximately $66,000,000, of which our share is $46,000,000. As of September 30, 2020, $55,207,000 has been expended, of which our share is $38,645,000.
We are redeveloping a 165,000 square foot office building at 825 Seventh Avenue, located at the corner of 53rd Street and Seventh Avenue (50.0% interest). The redevelopment cost of this project is estimated to be approximately $30,000,000, of which our share is $15,000,000. As of September 30, 2020, $25,818,000 has been expended, of which our share is $12,909,000.
We are also evaluating other development and redevelopment opportunities at certain of our properties in Manhattan, including, in particular, the Penn District.PENN District.
There can be no assurance that the above projects will be completed, completed on schedule or within budget.
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Liquidity and Capital Resources - continued
Development and Redevelopment Expenditures for the Nine Months Ended September 30, 2021 - continued
Below is a summary of amounts paid for development and redevelopment expenditures for the nine months ended September 30, 2021. These expenditures include interest and debt expense of $31,785,000, payroll of $8,117,000and other soft costs (primarily architectural and engineering fees, permits, real estate taxes and professional fees) aggregating$83,572,000, which were capitalized in connection with the development and redevelopment of these projects.
(Amounts in thousands)TotalNew YorktheMART555 California
Street
Other
Farley Office and Retail$171,036 $171,036 $— $— $— 
PENN 1129,521 129,521 — — — 
PENN 263,121 63,121 — — — 
PENN 15 (Hotel Pennsylvania site)30,828 30,828 — — — 
220 CPS16,958 — — — 16,958 
345 Montgomery Street4,263 — — 4,263 — 
Other28,918 26,847 2,071 — — 
$444,645 $421,353 $2,071 $4,263 $16,958 
Capital Expenditures for the Nine Months Ended September 30, 2020
Below is a summary of amounts paid for capital expenditures and leasing commissions for the nine months ended September 30, 2020.
(Amounts in thousands)TotalNew YorktheMART555 California
Street
Expenditures to maintain assets$46,771 $39,920 $5,674 $1,177 
Tenant improvements45,150 38,900 4,041 2,209 
Leasing commissions15,569 11,624 3,173 772 
Recurring tenant improvements, leasing commissions and other capital expenditures107,490 90,444 12,888 4,158 
Non-recurring capital expenditures61,171 60,961 210 — 
Total capital expenditures and leasing commissions$168,661 $151,405 $13,098 $4,158 
Development and Redevelopment Expenditures for the Nine Months Ended September 30, 2020
Below is a summary of amounts paid for development and redevelopment expenditures for the nine months ended September 30, 2020. These expenditures include interest and debt expense of $30,829,000, payroll of $11,696,000and other soft costs (primarily architectural and engineering fees, permits, real estate taxes and professional fees) aggregating$92,008,000, which were capitalized in connection with the development and redevelopment of these projects.
(Amounts in thousands)TotalNew YorktheMART555 California
Street
Other
Farley Office and Retail$174,159 $174,159 $— $— $— 
220 CPS83,117 — — — 83,117 
PENN175,247 75,247 — — — 
PENN260,493 60,493 — — — 
345 Montgomery Street14,491 — — 14,491 — 
Other40,660 36,787 3,836 — 37 
$448,167 $346,686 $3,836 $14,491 $83,154 
Capital Expenditures for the Nine Months Ended September 30, 2019
Below is a summary of amounts paid for capital expenditures and leasing commissions for the nine months ended September 30, 2019.
(Amounts in thousands)TotalNew YorktheMART555 California
Street
Expenditures to maintain assets$75,190 $66,061 $6,720 $2,409 
Tenant improvements78,738 67,503 8,021 3,214 
Leasing commissions17,051 15,251 714 1,086 
Recurring tenant improvements, leasing commissions and other capital expenditures170,979 148,815 15,455 6,709 
Non-recurring capital expenditures26,393 24,588 166 1,639 
Total capital expenditures and leasing commissions$197,372 $173,403 $15,621 $8,348 
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Liquidity and Capital Resources - continued
Development and Redevelopment Expenditures for the Nine Months Ended September 30, 2019
Below is a summary of amounts paid for development and redevelopment expenditures for the nine months ended September 30, 2019. These expenditures include interest and debt expense of $59,184,000, payroll of $12,673,000 and other soft costs (primarily architectural and engineering fees, permits, real estate taxes and professional fees) aggregating $51,587,000,$92,008,000, which were capitalized in connection with the development and redevelopment of these projects.
(Amounts in thousands)(Amounts in thousands)TotalNew YorktheMART555 California
Street
Other(Amounts in thousands)TotalNew YorktheMART555 California
Street
Other
Farley Office and RetailFarley Office and Retail$190,991 $190,991 $— $— $— Farley Office and Retail$174,159 $174,159 $— $— $— 
220 CPS220 CPS142,439 — — — 142,439 220 CPS83,117 — — — 83,117 
PENN134,476 34,476 — — — 
PENN 1PENN 175,247 75,247 — — — 
PENN 2PENN 260,493 60,493 — — — 
345 Montgomery Street345 Montgomery Street18,844 — — 18,844 — 345 Montgomery Street14,491 — — 14,491 — 
PENN217,404 17,404 — — — 
606 Broadway7,181 7,181 — — — 
1535 Broadway1,031 1,031 — — — 
OtherOther35,915 30,488 1,610 3,817 — Other40,660 36,787 3,836 — 37 
$448,281 $281,571 $1,610 $22,661 $142,439 $448,167 $346,686 $3,836 $14,491 $83,154 
76

Commitments

Liquidity and ContingenciesCapital Resources - continued
Farley OfficeInsurance
For our properties (except Farley), we maintain general liability insurance with limits of $300,000,000 per occurrence and Retailper property, of which $250,000,000 includes communicable disease coverage, and we maintain all risk property and rental value insurance with limits of $2.0 billion per occurrence, with sub-limits for certain perils such as flood and earthquake and effective February 15, 2021, excluding communicable disease coverage. For the period February 15, 2020 through February 14, 2021, we and the insurance carriers for our all risk property policy have disagreements as to the applicability of a $2,300,000 sub-limit for communicable disease coverage across our properties. Our California properties have earthquake insurance with coverage of $350,000,000 per occurrence and in the aggregate, subject to a deductible in the amount of 5% of the value of the affected property. We maintain coverage for certified terrorism acts with limits of $6.0 billion per occurrence and in the aggregate (as listed below), $1.2 billion for non-certified acts of terrorism, and $5.0 billion per occurrence and in the aggregate for terrorism involving nuclear, biological, chemical and radiological (“NBCR”) terrorism events, as defined by the Terrorism Risk Insurance Act of 2002, as amended to date and which has been extended through December 2027.
ThePenn Plaza Insurance Company, LLC (“PPIC”), our wholly owned consolidated joint venture in which we ownsubsidiary, acts as a 95% ownership interest was designated by ESDre-insurer with respect to develop Farley Officea portion of all risk property and Retail. The joint venture entered into a development agreement with ESDrental value insurance and a design-build contractportion of our earthquake insurance coverage, and as a direct insurer for coverage for acts of terrorism including NBCR acts. Coverage for acts of terrorism (excluding NBCR acts) is fully reinsured by third-party insurance companies and the Federal government with Skanska Moynihan Train Hall Builders. Under the development agreement with ESD, the joint ventureno exposure to PPIC. For NBCR acts, PPIC is obligated to build the Moynihan Train Hall, with Vornadoresponsible for a deductible of $1,759,257 and Related each guaranteeing the joint venture’s obligations. Under the design-build agreement, Skanska Moynihan Train Hall Builders is obligated to fulfill all20% of the joint venture’s obligations. The obligationsbalance of Skanska Moynihan Train Hall Builders have been bondeda covered loss and the Federal government is responsible for the remaining portion of a covered loss. We are ultimately responsible for any loss incurred by Skanska USAPPIC.
For Farley, we maintain general liability insurance with limits of $100,000,000 per occurrence, and bear a full guaranty from Skanska AB.builder’s risk insurance including coverage for existing property and development activities of $2.8 billion per occurrence and in the aggregate. We maintain coverage for certified and non-certified terrorism acts with limits of $1.85 billion and $1.17 billion per occurrence, respectively, and in the aggregate.
In connection withWe continue to monitor the developmentstate of the property,insurance market and the joint venture tookscope and costs of coverage for acts of terrorism and other events. However, we cannot anticipate what coverage will be available on commercially reasonable terms in a historic taxthe future. We are responsible for uninsured losses and for deductibles and losses in excess of our insurance coverage, which could be material.
Our debt instruments, consisting of mortgage loans secured by our properties, senior unsecured notes and revolving credit investor partner. Underagreements contain customary covenants requiring us to maintain insurance. Although we believe that we have adequate insurance coverage for purposes of these agreements, we may not be able to obtain an equivalent amount of coverage at reasonable costs in the terms of the historic tax credit arrangement, the joint venture is requiredfuture. Further, if lenders insist on greater coverage than we are able to comply with various laws, regulations,obtain it could adversely affect our ability to finance or refinance our properties and contractual provisions. Non-compliance with applicable requirements could result in projected tax benefits not being realized and, therefore, may require a refund or reduction of the Tax Credit Investor’s capital contributions. As of September 30, 2020, the Tax Credit Investor has made $92,400,000 in capital contributions. Vornado and Related have guaranteed certain of the joint venture’s obligations to the Tax Credit Investor.expand our portfolio.
Other Commitments and Contingencies
We are from time to time involved in legal actions arising in the ordinary course of business. In our opinion, after consultation with legal counsel, the outcome of such matters is not currently expected to have a material adverse effect on our financial position, results of operations or cash flows.
Each of our properties has been subjected to varying degrees of environmental assessment at various times. The environmental assessments did not reveal any material environmental contamination. However, there can be no assurance that the identification of new areas of contamination, changes in the extent or known scope of contamination, the discovery of additional sites, or changes in cleanup requirements would not result in significant costs to us.
In July 2018, we leased 78,000 square feet at 345 Montgomery Street in San Francisco, CA, to a subsidiary of Regus PLC, for an initial term of 15 years. The obligations under the lease were guaranteed by Regus PLC in an amount of up to $90,000,000. The tenant purported to terminate the lease prior to space delivery. We commenced a suit on October 23, 2019 seeking to enforce the lease and the guarantee.guaranty. On May 11, 2021, the court issued a final statement of decision in our favor and on July 7, 2021, the Regus subsidiary appealed the decision. On October 9, 2020, the successor to Regus PLC filed for bankruptcy in Luxembourg. We are actively pursuing claims relating to the guaranty against the successor to Regus PLC and its parent, in Luxembourg and other jurisdictions.
In November 2011, we entered into an agreement with the New York City Economic Development Corporation ("EDC") to lease Piers 92 and 94 (the "Piers") for a 49-year term with five 10-year renewal options. The non-recourse lease with a single-purpose entity calls for current annual rent payments of $2,000,000 with fixed rent steps through the initial term. We operate trade shows and special events at the Piers (and sublease to others for the same uses). In February 2019, an inspection revealed that the piles supporting Pier 92 were structurally unsound (an obligation of EDC to maintain) and we were issued an order by EDCfor us to vacate Pier 92 due to structural problems. Beginning March 2020 through August 2021, we did not pay EDC the property. We continuedmonthly rent due under the non-recourse lease due to make the required lease payments through February 2020, with no abatement provided by EDC for the loss of our right to use or occupy Pier 9292. On August 31, 2021, both parties entered into a mutual release with respect to claims by EDC for unpaid rent owed and claims by the Company for costs and damages as a result of our inability to use or reimbursement for lost revenues. Beginning March 2020, as no resolution had been reached with EDC, we have not paid the monthly rents due under the non-recourse lease. As of September 30, 2020, we have a $46,911,000 lease liability and a $34,563,000 right-of-use asset recorded for this lease.

83


Liquidity and Capital Resources - continued
Other Commitments and Contingencies - continuedoccupy Pier 92.
Our mortgage loans are non-recourse to us, except for the mortgage loans secured by 640 Fifth Avenue, 7 West 34th Street and 435 Seventh Avenue, which we guaranteed and therefore are part of our tax basis. In certain cases, we have provided guarantees or master leased tenant space. These guarantees and master leases terminate either upon the satisfaction of specified circumstances or repayment of underlying loans. In addition, we have guaranteed the rent and payments in lieu of real estate taxes due to ESD,Empire State Development, an entity of New York State, for Farley Office and Retail. As of September 30, 2020,2021, the aggregate dollar amount of these guarantees and master leases is approximately $1,745,000,000.$1,653,000,000.
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Liquidity and Capital Resources - continued
Other Commitments and Contingencies - continued
As of September 30, 2020, $14,080,0002021, $13,273,000 of letters of credit were outstanding under one of our unsecured revolving credit facilities. Our unsecured revolving credit facilities contain financial covenants that require us to maintain minimum interest coverage and maximum debt to market capitalization ratios, and provide for higher interest rates in the event of a decline in our ratings below Baa3/BBB. Our unsecured revolving credit facilities also contain customary conditions precedent to borrowing, including representations and warranties, and also contain customary events of default that could give rise to accelerated repayment, including such items as failure to pay interest or principal.
Our 95% consolidated joint venture (5% is owned by Related) is developing Farley Office and Retail. In connection with the development of the property, the joint venture took in a historic Tax Credit Investor. Under the terms of the historic tax credit arrangement, the joint venture is required to comply with various laws, regulations, and contractual provisions. Non-compliance with applicable requirements could result in projected tax benefits not being realized and, therefore, may require a refund or reduction of the Tax Credit Investor’s capital contributions. As of September 30, 2021, the Tax Credit Investor has made$92,400,000 in capital contributions. Vornado and Related have guaranteed certain of the joint venture’s obligations to the Tax Credit Investor.
As investment manager of Vornado Capital Partners Real Estatethe Fund (the "Fund") we are entitled to an incentive allocation after the limited partners have received a preferred return on their invested capital. The incentive allocation is subject to catch-up and clawback provisions. Accordingly, based on the September 30, 20202021 fair value of the Fund assets, at liquidation we would be required to make a $33,900,00028,000,000 payment to the limited partners, net of amounts owed to us, representing a clawback of previously paid incentive allocations, which would have no income statement impact as it was previously accrued.
As of September 30, 2020,2021, we expect to fund additional capital to certain of our partially owned entities aggregating approximately $11,000,000.$10,700,000.
As of September 30, 2020,2021, we have construction commitments aggregating approximately $504,000,000.$384,000,000.
78


Funds From Operations (“FFO”)
Vornado Realty Trust
FFO is computed in accordance with the definition adopted by the Board of Governors of the National Association of Real Estate Investment Trusts (“NAREIT”). NAREIT defines FFO as GAAP net income or loss adjusted to exclude net gains from sales of depreciablecertain real estate assets, real estate impairment losses, depreciation and amortization expense from real estate assets and other specified items, including the pro rata share of such adjustments of unconsolidated subsidiaries. FFO and FFO per diluted share are non-GAAP financial measures used by management, investors and analysts to facilitate meaningful comparisons of operating performance between periods and among our peers because it excludesthey exclude the effect of real estate depreciation and amortization and net gains on sales, which are based on historical costs and implicitly assume that the value of real estate diminishes predictably over time, rather than fluctuating based on existing market conditions. FFO does not represent cash generated from operating activities and is not necessarily indicative of cash available to fund cash requirements and should not be considered as an alternative to net income as a performance measure or cash flow as a liquidity measure. FFO may not be comparable to similarly titled measures employed by other companies. The calculations of both the numerator and denominator used in the computation of income (loss) per share are disclosed in Note 2019Income (Loss) Per Share/Income (Loss) Per Class A Unit, in our consolidated financial statements on page 4241 of this Quarterly Report on Form 10-Q.
FFO attributable to common shareholders plus assumed conversions was $278,507,000,$158,286,000, or $1.46$0.82 per diluted share for the three months ended September 30, 2020,2021, compared to $279,509,000,$278,507,000, or $1.46 per diluted share, for the prior year’s three months. FFO attributable to common shareholders plus assumed conversions was $612,123,000,$430,057,000, or $3.20$2.24 per diluted share for the nine months ended September 30, 2020,2021, compared to $691,522,000,$612,123,000, or $3.62$3.20 per diluted share, for the prior year’s nine months. Details of certain adjustments to FFO are discussed in the financial results summary of our “Overview”.
84


Funds From Operations (“FFO”) - continued

(Amounts in thousands, except per share amounts)(Amounts in thousands, except per share amounts)For the Three Months Ended September 30,For the Nine Months Ended
September 30,
(Amounts in thousands, except per share amounts)For the Three Months Ended
September 30,
For the Nine Months Ended
September 30,
20202019202020192021202020212020
Reconciliation of our net income (loss) attributable to common shareholders to FFO attributable to common shareholders plus assumed conversions:
Reconciliation of net income (loss) attributable to common shareholders to FFO attributable to common shareholders plus assumed conversions:Reconciliation of net income (loss) attributable to common shareholders to FFO attributable to common shareholders plus assumed conversions:
Net income (loss) attributable to common shareholdersNet income (loss) attributable to common shareholders$53,170 $322,906 $(139,617)$2,904,589 Net income (loss) attributable to common shareholders$37,689 $53,170 $89,817 $(139,617)
Per diluted sharePer diluted share$0.28 $1.69 $(0.73)$15.20 Per diluted share$0.20 $0.28 $0.47 $(0.73)
FFO adjustments:FFO adjustments:FFO adjustments:
Depreciation and amortization of real propertyDepreciation and amortization of real property$99,045 $89,479 $269,360 $303,415 Depreciation and amortization of real property$86,180 $99,045 $256,295 $269,360 
Net gains on sale of real estate— (178,769)— (178,769)
Net gain on transfer to Fifth Avenue and Times Square JV on April 18, 2019, net of $11,945 attributable to noncontrolling interests— — — (2,559,154)
Real estate impairment losses— — — 31,436 
Net gain from sale of UE common shares (sold on March 4, 2019)— — — (62,395)
Decrease (increase) in fair value of marketable securities:
PREIT (accounted for as a marketable security from March 12, 2019 and sold on January 23, 2020)— 4,875 4,938 19,211 
Lexington (sold on March 1, 2019)— — — (16,068)
Other— (7)— (48)
Proportionate share of adjustments to equity in net income of partially owned entities to arrive at FFO:
Real estate impairment losses in connection with the sales of Madison Avenue retail propertiesReal estate impairment losses in connection with the sales of Madison Avenue retail properties7,880 — 7,880 — 
Decrease in fair value of marketable securitiesDecrease in fair value of marketable securities— — — 4,938 
Proportionate share of adjustments to equity in net income (loss) of partially owned entities to arrive at FFO:Proportionate share of adjustments to equity in net income (loss) of partially owned entities to arrive at FFO:
Depreciation and amortization of real propertyDepreciation and amortization of real property35,125 38,987 104,829 119,146 
Decrease (increase) in fair value of marketable securitiesDecrease (increase) in fair value of marketable securities287 385 (1,118)3,511 
Non-cash impairment loss on our investment in Fifth Avenue and Times Square JV, net of $3,822 and $4,289 of noncontrolling interests
Non-cash impairment loss on our investment in Fifth Avenue and Times Square JV, net of $3,822 and $4,289 of noncontrolling interests
103,201 — 409,060 — Non-cash impairment loss on our investment in Fifth Avenue and Times Square JV, net of $3,822 and $4,289 of noncontrolling interests— 103,201 — 409,060 
Depreciation and amortization of real property38,987 37,696 119,146 97,317 
Decrease in fair value of marketable securities385 291 3,511 1,988 
Net gain on sale of real estateNet gain on sale of real estate— — (3,052)— 
241,618 (46,435)806,015 (2,363,067)129,472 241,618 364,834 806,015 
Noncontrolling interests' share of above adjustmentsNoncontrolling interests' share of above adjustments(16,292)3,024 (54,311)149,957 Noncontrolling interests' share of above adjustments(8,886)(16,292)(24,627)(54,311)
FFO adjustments, netFFO adjustments, net$225,326 $(43,411)$751,704 $(2,213,110)FFO adjustments, net$120,586 $225,326 $340,207 $751,704 
FFO attributable to common shareholdersFFO attributable to common shareholders$278,496 $279,495 $612,087 $691,479 FFO attributable to common shareholders$158,275 $278,496 $430,024 $612,087 
Convertible preferred share dividendsConvertible preferred share dividends11 14 36 43 Convertible preferred share dividends11 11 33 36 
FFO attributable to common shareholders plus assumed conversionsFFO attributable to common shareholders plus assumed conversions$278,507 $279,509 $612,123 $691,522 FFO attributable to common shareholders plus assumed conversions$158,286 $278,507 $430,057 $612,123 
Per diluted sharePer diluted share$1.46 $1.46 $3.20 $3.62 Per diluted share$0.82 $1.46 $2.24 $3.20 
Reconciliation of weighted average shares outstanding:Reconciliation of weighted average shares outstanding:Reconciliation of weighted average shares outstanding:
Weighted average common shares outstandingWeighted average common shares outstanding191,162 190,814 191,102 190,762 Weighted average common shares outstanding191,577 191,162 191,508 191,102 
Effect of dilutive securities:Effect of dilutive securities:Effect of dilutive securities:
Out-Performance Plan unitsOut-Performance Plan units452 — 630 — 
Convertible preferred sharesConvertible preferred shares26 34 28 35 Convertible preferred shares26 26 26 28 
Employee stock options and restricted share awards— 176 25 227 
AO LTIP unitsAO LTIP units— 10 — 
Employee stock options and restricted stock awardsEmployee stock options and restricted stock awards— 25 
Denominator for FFO per diluted shareDenominator for FFO per diluted share191,188 191,024 191,155 191,024 Denominator for FFO per diluted share192,067 191,188 192,177 191,155 

8579


Item 3. Quantitative and Qualitative Disclosures About Market Risk
We have exposure to fluctuations in market interest rates. Market interest rates are sensitive to many factors that are beyond our control. Our exposure to a change in interest rates on our consolidated and non-consolidated debt (all of which arises out of non-trading activity) is as follows:
(Amounts in thousands, except per share and per unit amounts)20202019
September 30, BalanceWeighted
Average
Interest Rate
Effect of 1%
Change in
Base Rates
December 31,
Balance
Weighted
Average
Interest Rate
Consolidated debt:
Variable rate$2,399,418 1.61%$23,994 $1,643,500 3.09%
Fixed rate5,086,714 3.70%— 5,801,516 3.57%
$7,486,132 3.03%23,994 $7,445,016 3.46%
Pro rata share of debt of non-consolidated entities(1):
  
Variable rate$1,479,094 1.78%14,791 $1,441,690 3.34%
Fixed rate1,360,915 3.93%— 1,361,169 3.93%
$2,840,009 2.81%14,791 $2,802,859 3.62%
Noncontrolling interests' share of consolidated subsidiaries(369)
Total change in annual net income attributable to the Operating Partnership38,416 
Noncontrolling interests’ share of the Operating Partnership(2,620)
Total change in annual net income attributable to Vornado$35,796 
Total change in annual net income attributable to the Operating Partnership per diluted Class A unit$0.19 
Total change in annual net income attributable to Vornado per diluted share$0.19 
____________________
(Amounts in thousands, except per share and per unit amounts)20212020
September 30, BalanceWeighted
Average
Interest Rate
Effect of 1%
Change in
Base Rates
December 31,
Balance
Weighted
Average
Interest Rate
Consolidated debt:
Variable rate$3,589,615 1.56%$35,896 $3,220,815 1.83%
Fixed rate5,090,000 3.19%— 4,212,643 3.70%
$8,679,615 2.51%35,896 $7,433,458 2.89%
Pro rata share of debt of non-consolidated entities:  
Variable rate$1,262,121 1.76%12,621 $1,384,710 (1)1.80%
Fixed rate1,454,323 3.73%— 1,488,464 3.76%
$2,716,444 2.82%12,621 $2,873,174 2.81%
Noncontrolling interests' share of consolidated subsidiaries(3,971)
Total change in annual net income attributable to the Operating Partnership44,546 
Noncontrolling interests’ share of the Operating Partnership(3,056)
Total change in annual net income attributable to Vornado$41,490 
Total change in annual net income attributable to the Operating Partnership per diluted Class A unit$0.22 
Total change in annual net income attributable to Vornado per diluted share$0.22 
___________________
(1)Our pro rata shareNet of debt of non-consolidated entities as of September 30, 2020 and December 31, 2019 is net ofour $16,200 and $63,409, respectively, of our share of Alexander's participation in its Rego Park II shopping center mortgage loan which is considered partially extinguished as the participation interest is a reacquisition of debt. On April 7, 2021, Alexander's used its participation in the loan to reduce the loan balance.
Fair Value of Debt
The estimated fair value of our consolidated debt is calculated based on current market prices and discounted cash flows at the current rate at which similar loans would be made to borrowers with similar credit ratings for the remaining term of such debt. As of September 30, 20202021, the estimated fair value of our consolidated debt was $7,503,000,000.$8,701,000,000.
Derivatives and Hedging
    We utilize various financial instruments to mitigate the impact of interest rate fluctuations on our cash flows and earnings, including hedging strategies, depending on our analysis of the interest rate environment and the costs and risks of such strategies. The following tablestable summarize our consolidated derivative instruments, all of which hedge variable rate debt, as of September 30, 2020 and December 31, 2019.2021.
(Amounts in thousands)As of September 30, 2020
Variable Rate
Hedged Item (Interest rate swaps)Fair ValueNotional AmountSpread over LIBORInterest RateSwapped RateExpiration Date
Included in other assets:
Other$17 $175,000 
Included in other liabilities:
Unsecured term loan$63,437 $750,000 (1)L+1001.15%3.87%10/23
33-00 Northern Boulevard mortgage loan9,065 100,000 L+1801.96%4.14%1/25
888 Seventh Avenue mortgage loan1,034 375,000 L+1701.84%3.25%12/20
$73,536 $1,225,000 
(Amounts in thousands)As of September 30, 2021
Variable Rate
Hedged ItemFair ValueNotional AmountSpread over LIBORInterest RateSwapped RateExpiration Date
Included in other assets:
555 California Street mortgage loan interest rate swap(1)
$3,159 $840,000 (2)L+1932.02%2.26%5/24
PENN 11 mortgage loan interest rate swap(3)
1,850 500,000 L+2752.83%3.03%3/24
Various interest rate caps82 700,000 
$5,091 $2,040,000 
Included in other liabilities:
Unsecured term loan interest rate swap$39,839 $750,000 (4)L+1001.09%3.87%10/23
33-00 Northern Boulevard mortgage loan interest rate swap5,553 100,000 L+1801.89%4.14%1/25
$45,392 $850,000 
____________________
(1)Entered into on May 15, 2021.
(2)Represents our 70.0% share of the $1.2 billion mortgage loan.
(3)Entered into on March 7, 2021.
(4)Remaining $50,000 balance of our unsecured term loan bears interest at a floating rate of LIBOR plus 1.00%.


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Item 3. Quantitative and Qualitative Disclosures About Market Risk - continued
Derivatives and Hedging - continued
(Amounts in thousands)As of December 31, 2019
Variable Rate
Hedged Item (Interest rate swaps)Fair ValueNotional AmountSpread over LIBORInterest RateSwapped RateExpiration Date
Included in other assets:
770 Broadway mortgage loan$4,045 $700,000 L+1753.46%2.56%9/20
888 Seventh Avenue mortgage loan218 375,000 L+1703.44%3.25%12/20
Other64 175,000 
$4,327 $1,250,000 
Included in other liabilities:
Unsecured term loan$36,809 $750,000 L+1002.80%3.87%10/23
33-00 Northern Boulevard mortgage loan3,545 100,000 L+1803.52%4.14%1/25
$40,354 $850,000 

Item 4. Controls and Procedures
Evaluation of Disclosure Controls and Procedures (Vornado Realty Trust)
Disclosure Controls and Procedures: Our management, with the participation of Vornado’s Chief Executive Officer and Chief Financial Officer, has evaluated the effectiveness of our disclosure controls and procedures (as such term is defined in Rule 13a‑15(e) under the Securities Exchange Act of 1934, as amended) as of the end of the period covered by this report. Based on such evaluation, Vornado’s Chief Executive Officer and Chief Financial Officer have concluded that, as of September 30, 20202021, such disclosure controls and procedures were effective.
Internal Control Over Financial Reporting: There have not been any changes in our internal control over financial reporting (as such term is defined in Rule 13a-15(f) under the Securities Exchange Act of 1934, as amended) during the fiscal quarter to which this report relates that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.
Evaluation of Disclosure Controls and Procedures (Vornado Realty L.P.)
Disclosure Controls and Procedures: Vornado Realty L.P.’s management, with the participation of Vornado’s Chief Executive Officer and Chief Financial Officer, has evaluated the effectiveness of our disclosure controls and procedures (as such term is defined in Rule 13a‑15(e) under the Securities Exchange Act of 1934, as amended) as of the end of the period covered by this report. Based on such evaluation, Vornado’s Chief Executive Officer and Chief Financial Officer have concluded that, as of September 30, 20202021, such disclosure controls and procedures were effective.
Internal Control Over Financial Reporting: There have not been any changes in our internal control over financial reporting (as such term is defined in Rule 13a-15(f) under the Securities Exchange Act of 1934, as amended) during the fiscal quarter to which this report relates that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.
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PART II. OTHER INFORMATION
Item 1. Legal Proceedings
We are from time to time involved in legal actions arising in the ordinary course of business. In our opinion, after consultation with legal counsel, the outcome of such matters is not currently expected to have a material adverse effect on our financial position, results of operations or cash flows.
Item 1A. Risk Factors
Except as set forth below, thereThere were no material changes to the Risk Factors disclosed in our Annual Report on Form 10-K for the year ended December 31, 2019.
Our business, financial condition, results of operations and cash flows have been and are expected to continue to be adversely affected by the recent COVID-19 pandemic and the impact could be material to us.
Our business has been adversely affected as a result of the COVID-19 pandemic and the preventive measures taken to curb the spread of the virus. Some of the effects on us include the following:
With the exception of grocery stores and other "essential" businesses, many of our retail tenants closed their stores in March 2020 and began reopening when New York City entered phase two of its state-mandated reopening plan on June 22, 2020.
While our buildings remain open, many of our office tenants are working remotely.
We have closed the Hotel Pennsylvania. In connection with the closure, we accrued $9,246,000 of severance for furloughed Hotel Pennsylvania union employees and recognized a corresponding $3,145,000 income tax benefit for the three and nine months ended September 30, 2020.
We have cancelled trade shows at theMART for the remainder of 2020.
Because certain of our development projects were deemed "non-essential," they were temporarily paused in March 2020 due to New York State executive orders and resumed once New York City entered phase one of its state mandated reopening plan on June 8, 2020.
As of April 30, 2020, we placed1,803 employees on furlough, which included 1,293 employees of Building Maintenance Services LLC ("BMS"), a wholly owned subsidiary, which provides cleaning, security and engineering services primarily to our New York properties, 414 employees at the Hotel Pennsylvania and 96 corporate staff employees. As of October 31, 2020, 40% of the furloughed employees have returned to work.
Effective April 1, 2020, our executive officers waived portions of their annual base salary for the remainder of 2020.
Effective April 1, 2020, each non-management member of our Board of Trustees agreed to forgo their $75,000 annual cash retainer for the remainder of 2020.
While we believe our tenants are required to pay rent under their leases, in limited circumstances, we have agreed to and may continue to agree to rent deferrals and rent abatements for certain of our tenants. We have made a policy election in accordance with the Financial Accounting Standards Board (“FASB”) Staff Q&A which provides relief in accounting for leases during the COVID-19 pandemic, allowing us to continue recognizing rental revenue on a straight-line basis for rent deferrals, with no impact to revenue recognition, and to recognize rent abatements as a reduction to rental revenue in the period granted.
For the quarter ended September 30, 2020, we collected 93% (95% including rent deferrals) of rent due from our tenants, comprised of 95% (97% including rent deferrals) from our office tenants and 82% (85% including rent deferrals) from our retail tenants. Rent deferrals generally require repayment in monthly installments over a period not to exceed twelve months.


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Item 1A. Risk Factors - continued
Numerous Federal, state, local and industry-initiated efforts may also affect our ability to collect rent or enforce remedies for the failure to pay rent. Certain of our tenants have incurred and may continue to incur significant costs or losses as a result of the COVID-19 pandemic and/or incur other liabilities related to shelter-in-place orders, quarantines, infection or other related factors that may adversely impact their ability to pay us timely or at all.
The COVID-19 pandemic has also caused, and is likely to continue to cause, severe economic, market or other disruptions worldwide. Conditions in the bank lending, capital and other financial markets may deteriorate as a result of the pandemic, our access to capital and other sources of funding may become constrained and the ratios of our debt to asset values may deteriorate, which could adversely affect the availability and terms of future borrowings, renewals or refinancings. In addition, the deterioration of global, national, regional and local economic conditions as a result of the pandemic may ultimately decrease occupancy levels and/or rent levels across our portfolio as tenants reduce or defer their spending, which may result in less cash flow available for operating costs, to pay our indebtedness and for distribution to our shareholders and the impact could be material. In addition, we have concluded that our investment in Fifth Avenue and Times Square JV is "other-than-temporarily" impaired and recorded non-cash impairment losses, net of noncontrolling interests, of $103,201,000 and $409,060,000, respectively, during the three and nine months ended September 30, 2020. The impairment losses are included in “(loss) income from partially owned entities” on our consolidated statements of income. The value of our real estate assets may continue to decline, which may result in additional non-cash impairment charges in future periods and that impact could be material. The extent of the COVID-19 pandemic's effect on our operational and financial performance will depend on future developments, including the duration, spread and intensity of the outbreak and governmental responses thereto, all of which are uncertain and difficult to predict. Due to the speed with which the situation is developing, we are not able at this time to estimate the ultimate effect of these factors on our business but the adverse impact on our business, results of operations, financial condition and cash flows could be material. The potential effects of COVID-19 also could impact many of our risk factors included in our Annual Report on Form 10-K for the year ended December 31, 2019 and give rise to additional risks and uncertainties currently not known to us or that we currently deem to be immaterial. However, the potential impact remains uncertain but that impact could be material to us.
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
Vornado Realty Trust
None.
Vornado Realty L.P.
During the quarter ended September 30, 2020,2021, we issued 8,536259,860 Class A units in connection with equity(i) the issuance of Vornado common shares and (ii) the exercise of awards issued pursuant to Vornado’s omnibus share plan, including with respect to grants of restricted Vornado common shares and restricted units of the Operating Partnership and upon conversion, surrender or exchange of the Operating Partnership’s units or Vornado stock options, andoptions. The consideration received included $299,272$222,820 in cash proceeds. Such units were issued in reliance on an exemption from registration under Section 4(2)4(a)(2) of the Securities Act of 1933, as amended.
Item 3. Defaults Upon Senior Securities
None.
Item 4. Mine Safety Disclosures
Not applicable.
Item 5. Other Information
None.Effective November 2, 2021, Deirdre Maddock has been promoted to the position of Senior Vice President, Chief Accounting Officer of the Company. Ms. Maddock succeeds Matthew Iocco, who will be retiring after 22 years with the Company. Mr. Iocco will remain with the Company through December 31, 2021 to assist with the transition.
Ms. Maddock currently serves as Vice President, SEC Reporting and Corporate Accounting. Prior to joining the Company in 2016, Ms. Maddock worked in the audit practice at Deloitte & Touche LLP specializing in real estate and banking.
Item 6. Exhibits
Exhibits required by Item 601 of Regulation S-K are filed herewith or incorporated herein by reference and are listed in the attached Exhibit Index.
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EXHIBIT INDEX
Exhibit No.
Articles Supplementary Classifying Vornado Realty Trust's 4.45% Series O Cumulative Redeemable Preferred Shares of Beneficial Interest, liquidation preference $25.00 per share, no par value - Incorporated by reference to Exhibit 3.1 to Vornado Realty Trust's Current Report on Form 8-K (File No. 001-11954), filed on September 22, 2021*
Fifty-First Amendment to Second Amended and Restated Agreement of Limited Partnership of Vornado Realty L.P., dated as of September 22, 2021 - Incorporated by reference to Exhibit 3.2 to Vornado Realty Trust's Current Report on Form 8-K (File No. 001-11954), filed on September 22, 2021*
Letter regarding Unaudited Interim Financial Information of Vornado Realty Trust
Letter regarding Unaudited Interim Financial Information of Vornado Realty L.P.
Rule 13a-14 (a) Certification of the Chief Executive Officer of Vornado Realty Trust
Rule 13a-14 (a) Certification of the Chief Financial Officer of Vornado Realty Trust
Rule 13a-14 (a) Certification of the Chief Executive Officer of Vornado Realty L.P.
Rule 13a-14 (a) Certification of the Chief Financial Officer of Vornado Realty L.P.
Section 1350 Certification of the Chief Executive Officer of Vornado Realty Trust
Section 1350 Certification of the Chief Financial Officer of Vornado Realty Trust
Section 1350 Certification of the Chief Executive Officer of Vornado Realty L.P.
Section 1350 Certification of the Chief Financial Officer of Vornado Realty L.P.
101The following financial information from Vornado Realty Trust and Vornado Realty L.P. Quarterly Report
on Form 10-Q for the quarter ended September 30, 20202021 formatted in Inline Extensible Business Reporting
Language (iXBRL) includes: (i) consolidated balance sheets, (ii) consolidated statements of income,
(iii) consolidated statements of comprehensive income, (iv) consolidated statements of changes in equity,
(v) consolidated statements of cash flows, and (vi) the notes to consolidated financial statements.
104The cover page from the Vornado Realty Trust and Vornado Realty L.P. Quarterly Report on Form 10-Q for the quarter ended September 30, 2021, formatted as iXBRL and contained in Exhibit 101.
                                                                the quarter ended September 30, 2020, formatted as iXBRL and contained in Exhibit 101
*Incorporated by reference

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
VORNADO REALTY TRUST
(Registrant)
Date: November 2, 20201, 2021By:/s/ Matthew Iocco
Matthew Iocco, Chief Accounting Officer (duly
authorized officer and principal accounting officer)
9183


SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
VORNADO REALTY L.P.
(Registrant)
Date: November 2, 20201, 2021By:/s/ Matthew Iocco
Matthew Iocco, Chief Accounting Officer of Vornado Realty Trust, sole General Partner of Vornado Realty L.P. (duly authorized officer and principal accounting officer)
9284