Vornado Realty (VNOD) 8-K Results of Operations and Financial Condition

EXHIBIT 99.2

SUPPLEMENTAL OPERATING

AND FINANCIAL DATA

For the Quarter Ended March 31, 2014

 

 

INDEX
	Page
Investor Information	2
2014 Business Developments	3
Common Shares Data	4
Financial Highlights	5
Funds From Operations	6 - 7
Funds Available for Distribution	8
Net Income / EBITDA (Consolidated and by Segment)	9 - 12
EBITDA by Segment and Region	13
Consolidated Balance Sheets	14
Capital Structure	15
Debt Analysis	16 - 18
Unconsolidated Joint Ventures	19 - 20
Square Footage	21
Top 30 Tenants	22
Lease Expirations	23 - 25
Leasing Activity	26
Occupancy, Same Store EBITDA and Residential Statistics	27
Capital Expenditures	28 - 32
Development Costs and Construction in Progress	33
Property Table	34 - 51
Certain statements contained herein 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 supplemental package. 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. For further discussion of factors that could materially affect the outcome of our forward-looking statements, see “Item 1A. Risk Factors” in our Annual Report on Form 10-K, as amended, for the year ended December 31, 2013.
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 supplemental package. 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 our Annual Report on Form 10-K, as amended, or Quarterly Report on Form 10-Q, as applicable, and this supplemental package.

 

INVESTOR INFORMATION
Key Employees:
Steven Roth	Chairman of the Board and Chief Executive Officer
Michael J. Franco	Executive Vice President - Co-Head of Acquisitions and Capital Markets
David R. Greenbaum	President - New York Division
Joseph Macnow	Executive Vice President - Finance and Chief Administrative Officer
Robert Minutoli	Executive Vice President - Retail Division
Mitchell N. Schear	President - Vornado / Charles E. Smith Washington, DC Division
Wendy Silverstein	Executive Vice President - Co-Head of Acquisitions and Capital Markets
Stephen W. Theriot	Chief Financial Officer
RESEARCH COVERAGE - EQUITY
James Feldman / Stephen Sihelnik		Michael Knott / John Bejjani	Alexander Goldfarb / Andrew Schaffer
Bank of America / Merrill Lynch		Green Street Advisors, Inc.	Sandler O'Neill & Partners
646-855-5808 / 646-855-1829		949-640-8780 / 949-640-8780	212-466-7937 / 212-466-8062
Ross Smotrich / Michael R. Lewis		David Harris	John W. Guinee / Erin T. Aslakson
Barclays Capital		Imperial Capital	Stifel Nicolaus & Company
212-526-2306 / 212-526-3098		212-351-9429	443-224-1307 / 443-224-1350
Michael Bilerman / Emmanuel Korchman		Steve Sakwa / George Auerbach	Ross T. Nussbaum / Gabriel Hilmoe
Citigroup Global Markets		ISI Group	UBS
212-816-1383 / 212-816-1382		212-446-9462 / 212-446-9459	212-713-2484 / 212-713-3876
Vincent Chao		Anthony Paolone
Deutsche Bank		JP Morgan
212-250-6799		212-622-6682
Brad K. Burke		Vance H. Edelson
Goldman Sachs		Morgan Stanley
917-343-2082		212-761-0078
RESEARCH COVERAGE - DEBT
Scott Frost		Robert Haines / Craig Guttenplan	Thierry Perrein
Bank of America / Merrill Lynch		Credit Sights	Wells Fargo Securities
646-855-8078		212-340-3835 / 212-340-3859	704-715-8455
Danish Agboatwala		Ron Perrotta
Barclays Capital		Goldman Sachs
212-412-2573		212-902-7885
Thomas Cook		Mark Streeter
Citigroup Global Markets		JP Morgan
212-723-1112		212-834-5086
This information is provided as a service to interested parties and not as an endorsement of any report, or representation as to the accuracy of any information contained therein. Opinions, forecasts and other forward-looking statements expressed in analysts' reports are subject to change without notice.

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2014 BUSINESS DEVELOPMENTS

Retail Spin-off

On April 11, 2014, we announced a plan to spin off our shopping center business consisting of 81 strip shopping centers and four malls into a new publicly traded REIT (“SpinCo”).  The spin-off is expected to be effectuated through a 1:2 distribution of SpinCo’s shares to Vornado common shareholders and Vornado Realty L.P. common unitholders, and is intended to be treated as tax-free for U.S. federal income tax purposes.  We intend to file the initial registration statement on Form 10 with the Securities and Exchange Commission (“SEC”) by the end of the second quarter of 2014 and expect the spin-off to be completed by the end of 2014.  The transaction is subject to certain conditions, including the SEC declaring that SpinCo’s registration statement is effective, filing and approval of SpinCo’s listing application, receipt of third party consents, and formal approval and declaration of the distribution by Vornado’s Board of Trustees.  Vornado may, at any time and for any reason until the proposed transaction is complete, abandon the separation or modify or change its terms. 

Vornado will retain, for disposition in the near term, 20 small retail assets which do not fit SpinCo’s strategy, and the Beverly Connection and Springfield Town Center, both of which are under contract for disposition.

Dispositions

Since January 1, 2014, we have sold or entered into agreements to sell the following:

·On February 24, 2014, we completed the sale of Broadway Mall in Hicksville, Long Island, New York for $94,000,000.  The sale resulted in net proceeds of $92,174,000 after closing costs.

·On March 2, 2014, we entered into an agreement to transfer upon completion, the redeveloped Springfield Town Center, a 1,350,000 square foot mall located in Springfield, Fairfax County, Virginia, to Pennsylvania Real Estate Investment Trust (NYSE: PEI) (“PREIT”) in exchange for $465,000,000 comprised of $340,000,000 of cash and $125,000,000 of PREIT operating partnership units.  The redevelopment is expected to be completed in the fourth quarter of 2014. The closing will be no later than March 31, 2015.

·On March 17, 2014, we entered into an agreement to sell Beverly Connection, a 335,000 square foot power shopping center in Los Angeles, California, for $260,000,000.  The sale, which is subject to customary closing conditions, is expected to be completed in the third quarter of 2014.

Financing Activities

Since January 1, 2014, we have executed the following capital market transactions:

·On January 31, 2014, we completed a $600,000,000 loan secured by our 220 Central Park South development site.  The loan bears interest at LIBOR plus 2.75% (2.90% at March 31, 2014) and matures in January 2016, with three one-year extension options.

·On April 16, 2014, we completed a $350,000,000 refinancing of 909 Third Avenue, a 1.3 million square foot Manhattan office building.  The seven-year interest only loan bears interest at 3.91% and matures in May 2021.  We realized net proceeds of approximately $145,000,000 after repaying the existing 5.64%, $193,000,000 mortgage, defeasance costs and other closing costs.

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COMMON SHARES DATA (NYSE: VNO)
(unaudited)
Vornado Realty Trust common shares are traded on the New York Stock Exchange ("NYSE") under the symbol VNO. Below is a summary of VNO common shares performance and dividends (based on NYSE prices):
				First Quarter 2014		Fourth Quarter 2013		Third Quarter 2013		Second Quarter 2013
High Price				$	100.02	$	91.91	$	89.35	$	88.73
Low Price				$	87.82	$	82.73	$	79.56	$	76.19
Closing Price - end of quarter				$	98.56	$	88.79	$	84.06	$	82.85
Annualized Dividend per share				$	2.92	$	2.92	$	2.92	$	2.92
Annualized Dividend Yield - on Closing Price					3.0%		3.3%		3.5%		3.5%
Outstanding shares, Class A units and convertible preferred units
	as converted, excluding stock options (in thousands)				199,583		199,245		199,051		199,051
Closing market value of outstanding shares, Class A units and
	convertible preferred units as converted, excluding stock options			$	19.7 Billion	$	17.7 Billion	$	16.7 Billion	$	16.5 Billion
TIMING
Quarterly financial results and related earnings conference calls for the remainder of 2014 are expected to occur as follows:
		Filing Date	Earnings Call
Second Quarter 2014		Monday, August 4, 2014	Tuesday, August 5, 2014 10AM ET
Third Quarter 2014		Monday, November 3, 2014	Tuesday, November 4, 2014 10AM ET

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FINANCIAL HIGHLIGHTS
(unaudited and in thousands, except per share amounts)
This section includes non-GAAP financial measures, including Earnings Before Interest Taxes Depreciation and Amortization ("EBITDA"), Funds From Operations attributable to common shares plus assumed conversions ("FFO"), FFO as adjusted for comparability, and Funds Available for Distribution ("FAD"). A description of these non-GAAP measures and reconciliations to the most directly comparable GAAP measures are provided on the pages that follow.
				Three Months Ended
				March 31,				December 31,
				2014		2013		2013
	Total revenues			$	660,618	$	718,713	$	663,194
	Net income (loss) attributable to common shareholders			$	62,349	$	231,990	$	(68,887)
		Per common share:
			Basic	$	0.33	$	1.24	$	(0.37)
			Diluted	$	0.33	$	1.24	$	(0.37)
	FFO as adjusted for comparability			$	226,882	$	211,640	$	243,143
		Per diluted share		$	1.20	$	1.13	$	1.30
	FFO (Negative FFO)			$	247,079	$	201,820	$	(6,784)
	FFO (Negative FFO) - Operating Partnership Basis ("OP Basis")			$	262,431	$	214,365	$	(7,206)
		Per diluted share		$	1.31	$	1.08	$	(0.04)
	FAD			$	151,200	$	144,723	$	134,303
		Per diluted share		$	0.80	$	0.77	$	0.72
	Dividends per common share			$	0.73	$	0.73	$	0.73
	FFO payout ratio (based on FFO as adjusted for comparability)				60.8%		64.6%		56.2%
	FAD payout ratio				91.3%		94.8%		101.4%
	Weighted average shares used in determining FFO per diluted share - REIT basis				188,287		187,529		187,109
	Convertible units:
		Class A			10,611		10,608		10,564
		D-13			498		564		531
		G1-G4			87		103		96
		Equity awards - unit equivalents			503		382		442
	Weighted average shares used in determining FFO per diluted share - OP Basis				199,986		199,186		198,742

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RECONCILIATION OF NET INCOME TO FFO (1)
(unaudited and in thousands, except per share amounts)
				Three Months Ended
				March 31,				December 31,
				2014		2013		2013
Reconciliation of our net income (loss) to FFO (Negative FFO):
	Net income (loss) attributable to Vornado			$	82,717	$	262,922	$	(48,519)
	Depreciation and amortization of real property				142,569		132,513		124,611
	Net gains on sale of real estate				-		(202,329)		(127,512)
	Real estate impairment losses				20,842		1,514		32,443
	Proportionate share of adjustments to equity in net income of
		Toys, to arrive at FFO:
			Depreciation and amortization of real property		11,415		19,325		16,506
			Real estate impairment losses		-		3,650		456
			Income tax effect of above adjustments		(3,995)		(8,050)		(5,937)
	Proportionate share of adjustments to equity in net income of
		partially owned entities, excluding Toys, to arrive at FFO:
			Depreciation and amortization of real property		25,271		21,830		25,282
			Net gains on sale of real estate		-		(465)		-
	Noncontrolling interests' share of above adjustments				(11,399)		1,814		(3,746)
	FFO				267,420		232,724		13,584
	Preferred share dividends				(20,368)		(21,702)		(20,368)
	Preferred share redemptions				-		(9,230)		-
	FFO (Negative FFO) attributable to common shareholders				247,052		201,792		(6,784)
	Convertible preferred share dividends				27		28		-
	FFO (Negative FFO) attributable to common shareholders plus assumed conversions				247,079		201,820		(6,784)
	Add back of income allocated to noncontrolling interests of the
		Operating Partnership			15,352		12,545		(422)
	FFO (Negative FFO) - OP Basis (1)			$	262,431	$	214,365	$	(7,206)
	FFO (Negative FFO) per diluted share (1)			$	1.31	$	1.08	$	(0.04)
(1) 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 gain from sales of depreciated real estate assets, real estate impairment losses, depreciation and amortization expense from real estate assets, extraordinary items and other specified non-cash items, including the pro rata share of such adjustments of unconsolidated subsidiaries. FFO and FFO per diluted share are used by management, investors and analysts to facilitate meaningful comparisons of operating performance between periods and among our peers because it excludes 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 flows as a liquidity measure. FFO may not be comparable to similarly titled measures employed by other companies.

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RECONCILIATION OF FFO TO FFO AS ADJUSTED FOR COMPARABILITY
(unaudited and in thousands, except per share amounts)
				Three Months Ended
				March 31,				December 31,
				2014		2013		2013
FFO (Negative FFO) attributable to common shareholders plus assumed
	conversions		(A)	$	247,079	$	201,820	$	(6,784)
Per diluted share				$	1.31	$	1.08	$	(0.04)
Items that affect comparability income (expense):
	Toys "R" Us FFO (Negative FFO) (including impairment losses of $75,196, $78,542
		and $162,215, respectively)			9,267		16,684		(282,041)
	Net gain on sale of land parcels and residential condominiums				9,635		-		23,988
	FFO from discontinued operations, including LNR in the three months ended March 31, 2013				4,139		27,951		7,568
	Losses from the mark-to-market, impairment and disposition of investment in
		J.C. Penney			-		(98,827)		-
	Stop & Shop litigation settlement income				-		59,599		-
	Preferred share redemptions				-		(9,230)		-
	Merchandise Mart reduction-in-force and severance costs				-		(2,612)		-
	Acquisition related costs				(1,784)		(601)		(18,088)
	Other, net				-		(3,363)		3,436
					21,257		(10,399)		(265,137)
Noncontrolling interests' share of above adjustments					(1,060)		579		15,210
Items that affect comparability, net			(B)	$	20,197	$	(9,820)	$	(249,927)
Per diluted share				$	0.11	$	(0.05)	$	(1.34)
FFO attributable to common shareholders plus assumed conversions,
	as adjusted for comparability		(A-B)	$	226,882	$	211,640	$	243,143
Per diluted share				$	1.20	$	1.13	$	1.30

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RECONCILIATION OF FFO TO FAD (1)
(unaudited and in thousands, except per share amounts)
				Three Months Ended
				March 31,				December 31,
				2014		2013		2013
FFO (Negative FFO) attributable to common shareholders plus assumed conversions			(A)	$	247,079	$	201,820	$	(6,784)
Adjustments to arrive at FAD:
	Items that affect comparability per page 7, excluding FFO attributable to
		discontinued operations			17,118		(38,350)		(272,705)
	Recurring tenant improvements, leasing commissions and other capital expenditures (3)				72,500		75,312		98,371
	Straight-line rentals				13,058		17,701		20,562
	Amortization of acquired below-market leases, net				10,824		15,075		11,263
	Carried interest and our share of net unrealized gains from Real Estate Fund				5,317		5,562		14,915
	Stock-based compensation expense				(11,024)		(7,466)		(9,118)
	Amortization of debt issuance costs				(4,812)		(5,378)		(10,473)
	Non real estate depreciation				(1,575)		(1,984)		(2,346)
	Noncontrolling interests' share of above adjustments				(5,527)		(3,375)		8,444
			(B)		95,879		57,097		(141,087)
FAD(1)			(A-B)	$	151,200	$	144,723	$	134,303
FAD per diluted share				$	0.80	$	0.77	$	0.72
FAD payout ratio (2)					91.3%		94.8%		101.4%
(1) FAD is defined as FFO less (i) recurring tenant improvements, leasing commissions and capital expenditures, (ii) straight-line rents and amortization of acquired below-market leases, net, and (iii) other non-cash income, plus (iv) other non-cash charges. FAD is a non-GAAP financial measure that is not intended to represent cash flow and is not indicative of cash flow provided by operating activities as determined in accordance with GAAP. FAD is presented solely as a supplemental disclosure that management believes provides useful information regarding the Company's ability to fund its dividends.
(2) FAD payout ratios on a quarterly basis are not necessarily indicative of amounts for the full year due to fluctuation in timing of cash based expenditures, the commencement of new leases and the seasonality of our operations.
(3) Includes expenditures of $4,462, $14,779, and $25,541 in the three months ended March 31, 2014 and 2013 and December 31, 2013, respectively, for the 608,000 square foot Motorola Mobility lease at the Merchandise Mart (whose cash rent has not commenced).

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CONSOLIDATED NET INCOME / EBITDA (1)
(unaudited and in thousands)
		Three Months Ended
		March 31,						December 31,
		2014		2013		Inc (Dec)		2013
Property rentals		$	503,360	$	499,915	$	3,445	$	504,137
Straight-line rent adjustments			13,058		17,701		(4,643)		20,562
Amortization of acquired below-market leases, net			11,682		16,177		(4,495)		11,916
Total rentals			528,100		533,793		(5,693)		536,615
Tenant expense reimbursements			86,590		75,964		10,626		79,114
Cleveland Medical Mart development project			-		12,143		(12,143)		2,343
Fee and other income:
	BMS cleaning fees		18,956		16,664		2,292		17,434
	Signage revenue		9,318		6,481		2,837		9,300
	Management and leasing fees		6,214		5,253		961		4,976
	Lease termination fees		3,793		59,968		(56,175)		5,144
	Other income		7,647		8,447		(800)		8,268
Total revenues			660,618		718,713		(58,095)		663,194
Operating expenses			273,391		265,747		7,644		262,251
Depreciation and amortization			147,651		139,317		8,334		130,210
General and administrative			52,158		51,380		778		50,396
Cleveland Medical Mart development project			-		11,374		(11,374)		2,446
Impairment losses and acquisition related costs			21,784		601		21,183		37,088
Total expenses			494,984		468,419		26,565		482,391
Operating income			165,634		250,294		(84,660)		180,803
Income (loss) applicable to Toys			1,847		1,759		88		(293,066)
Income (loss) from partially owned entities			132		20,766		(20,634)		(99)
Income from Real Estate Fund			18,148		16,564		1,584		28,951
Interest and other investment income (loss), net			11,893		(49,075)		60,968		8,234
Interest and debt expense			(109,442)		(120,346)		10,904		(120,625)
Net gain (loss) on disposition of wholly owned and partially owned assets			9,635		(36,724)		46,359		23,988
Income (loss) before income taxes			97,847		83,238		14,609		(171,814)
Income tax (expense) benefit			(1,582)		(1,073)		(509)		12,578
Income (loss) from continuing operations			96,265		82,165		14,100		(159,236)
Income from discontinued operations			1,891		206,762		(204,871)		120,477
Net income (loss)			98,156		288,927		(190,771)		(38,759)
Less net (income) loss attributable to noncontrolling interests in:
	Consolidated subsidiaries		(11,579)		(11,286)		(293)		(13,903)
	Operating Partnership		(3,848)		(13,933)		10,085		4,155
	Preferred unit distributions of the Operating Partnership		(12)		(786)		774		(12)
Net income (loss) attributable to Vornado			82,717		262,922		(180,205)		(48,519)
Interest and debt expense			170,952		188,780		(17,828)		207,424
Depreciation and amortization			196,339		194,185		2,154		183,685
Income tax expense			19,831		60,759		(40,928)		8,270
EBITDA		$	469,839	$	706,646	$	(236,807)	$	350,860
Capitalized leasing and development payroll		$	4,486	$	4,249	$	237	$	4,682
Capitalized interest		$	13,622	$	8,260	$	5,362	$	14,279
(1) EBITDA represents "Earnings Before Interest, Taxes, Depreciation and Amortization." Management considers EBITDA a supplemental measure for making decisions and assessing the unlevered performance of its 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 a multiple of EBITDA, management utilizes this measure to make investment decisions as well as to compare the performance of its assets to that of its peers. EBITDA should not be considered a substitute for net income. EBITDA may not be comparable to similarly titled measures employed by other companies.

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EBITDA BY SEGMENT
(unaudited and in thousands)
		Three Months Ended March 31, 2014
										Retail
		Total		New York			Washington, DC			Properties			Toys		Other
Property rentals		$	503,360	$	272,886		$	112,598		$	59,274		$	-	$	58,602
Straight-line rent adjustments			13,058		7,681			(1,046)			482			-		5,941
Amortization of acquired below-market leases, net			11,682		7,792			480			2,101			-		1,309
Total rentals			528,100		288,359			112,032			61,857			-		65,852
Tenant expense reimbursements			86,590		45,019			11,535			26,246			-		3,790
Fee and other income:
	BMS cleaning fees		18,956		23,958			-			-			-		(5,002)
	Signage revenue		9,318		9,318			-			-			-		-
	Management and leasing fees		6,214		3,061			3,026			386			-		(259)
	Lease termination fees		3,793		818			2,496			216			-		263
	Other income		7,647		749			6,189			100			-		609
Total revenues			660,618		371,282			135,278			88,805			-		65,253
Operating expenses			273,391		160,421			50,264			34,485			-		28,221
Depreciation and amortization			147,651		73,786			31,861			23,090			-		18,914
General and administrative			52,158		7,792			7,447			4,656			-		32,263
Impairment losses and acquisition related costs			21,784		-			-			20,000			-		1,784
Total expenses			494,984		241,999			89,572			82,231			-		81,182
Operating income (loss)			165,634		129,283			45,706			6,574			-		(15,929)
Income applicable to Toys			1,847		-			-			-			1,847		-
Income (loss) from partially owned entities			132		1,566			(1,266)			538			-		(706)
Income from Real Estate Fund			18,148		-			-			-			-		18,148
Interest and other investment income, net			11,893		1,475			36			9			-		10,373
Interest and debt expense			(109,442)		(42,839)			(19,347)			(9,217)			-		(38,039)
Net gain on disposition of wholly owned and
	partially owned assets		9,635		-			-			-			-		9,635
Income (loss) before income taxes			97,847		89,485			25,129			(2,096)			1,847		(16,518)
Income tax (expense) benefit			(1,582)		(969)			199			(731)			-		(81)
Income (loss) from continuing operations			96,265		88,516			25,328			(2,827)			1,847		(16,599)
Income from discontinued operations			1,891		-			-			1,714			-		177
Net income (loss)			98,156		88,516			25,328			(1,113)			1,847		(16,422)
Less net (income) attributable to noncontrolling interests in:
	Consolidated subsidiaries		(11,579)		(1,405)			-			(17)			-		(10,157)
	Operating Partnership		(3,848)		-			-			-			-		(3,848)
	Preferred unit distributions of the Operating Partnership		(12)		-			-			-			-		(12)
Net income (loss) attributable to Vornado			82,717		87,111			25,328			(1,130)			1,847		(30,439)
Interest and debt expense			170,952		58,068			22,798			10,351			38,549		41,186
Depreciation and amortization			196,339		87,587			36,150			25,328			26,924		20,350
Income tax expense (benefit)			19,831		1,032			(189)			731			18,077		180
EBITDA for the three months ended March 31, 2014		$	469,839	$	233,798		$	84,087		$	35,280		$	85,397	$	31,277
EBITDA for the three months ended March 31, 2013		$	706,646	$	217,537		$	86,244		$	322,326		$	141,961	$	(61,422)
EBITDA as adjusted for comparability - OP basis:
	For the three months ended March 31, 2014	$	397,154	$	233,798	(1)	$	84,087	(2)	$	52,160	(3)	$	-	$	27,109	(4)
	For the three months ended March 31, 2013	$	387,602	$	215,103	(1)	$	86,244	(2)	$	50,734	(3)	$	-	$	35,521	(4)
See notes on pages 11 and 12.

- 10 -

 

NOTES TO EBITDA BY SEGMENT
(unaudited and in thousands)
(1)	The elements of "New York" EBITDA as adjusted for comparability are summarized below.
			Three Months Ended March 31,
			2014		2013
		Office	$	157,879	$	143,950
		Retail		66,195		60,294
		Alexander's		10,430		10,541
		Hotel Pennsylvania		(706)		318
		Total New York	$	233,798	$	215,103
(2)	The elements of "Washington, DC" EBITDA as adjusted for comparability are summarized below.
			Three Months Ended March 31,
			2014		2013
		Office, excluding the Skyline Properties	$	67,257	$	67,107
		Skyline properties		6,499		8,162
		Total Office		73,756		75,269
		Residential		10,331		10,975
		Total Washington, DC	$	84,087	$	86,244
(3)	The elements of "Retail Properties" EBITDA as adjusted for comparability are summarized below.
			Three Months Ended March 31,
			2014		2013
		Strip shopping centers	$	38,435	$	36,588
		Regional malls		13,725		14,146
		Total Retail properties	$	52,160	$	50,734

- 11 -

 

NOTES TO EBITDA BY SEGMENT
(unaudited and in thousands)
(4)	The elements of "other" EBITDA as adjusted for comparability are summarized below.
			Three Months Ended March 31,
			2014			2013
	Our share of Real Estate Fund:
		Income before net realized/unrealized gains	$	1,982		$	1,462
		Net unrealized gains		3,542			3,379
		Carried interest		1,775			2,183
	Total			7,299			7,024
	Merchandise Mart Building and trade shows			19,087			16,854
	555 California Street			12,066			10,629
	India real estate ventures			1,824			1,759
	Lexington(a)			-			2,770
	Other investments			4,742			7,905
				45,018			46,941
	Corporate general and administrative expenses(b)			(25,982)	(c)		(22,756)
	Investment income and other, net(b)			8,073			11,336
		Total Other	$	27,109		$	35,521
	(a)	In the first quarter of 2013, we began accounting for our investment in Lexington as a marketable equity security - available for sale. The 2013 amount represents our share of Lexington's 2012 fourth quarter earnings which was recorded on a one-quarter lag basis.
	(b)	The amounts in these captions (for this table only) exclude income (expense) from the mark-to-market of our deferred compensation plan.
	(c)	Includes $1,117 of additional amortization due to the timing of the 2014 equity grants.

- 12 -

 

EBITDA BY SEGMENT AND REGION
(unaudited)
The following tables set forth the percentages of EBITDA, by operating segment and by geographic region (excluding discontinued operations, other gains and losses that affect comparability and our Toys and Other Segments).
		Three Months Ended March 31,
		2014	2013
Segment
	New York	63%	61%
	Washington, DC	23%	25%
	Retail Properties	14%	14%
		100%	100%
Region
	New York City metropolitan area	74%	72%
	Washington, DC / Northern Virginia metropolitan area	23%	25%
	Puerto Rico	2%	2%
	Other geographies	1%	1%
		100%	100%

- 13 -

 

CONSOLIDATED BALANCE SHEETS
(unaudited and in thousands)
				March 31,		December 31,		(Decrease)
				2014		2013		Increase
ASSETS
	Real estate, at cost:
		Land		$	4,058,317	$	4,068,306	$	(9,989)
		Buildings and improvements			12,477,661		12,475,556		2,105
		Development costs and construction in progress			1,410,465		1,353,121		57,344
		Leasehold improvements and equipment			133,699		132,483		1,216
			Total		18,080,142		18,029,466		50,676
		Less accumulated depreciation and amortization			(3,441,223)		(3,381,457)		(59,766)
	Real estate, net				14,638,919		14,648,009		(9,090)
	Cash and cash equivalents				1,156,727		583,290		573,437
	Restricted cash				210,184		262,440		(52,256)
	Marketable securities				205,042		191,917		13,125
	Tenant and other receivables, net				123,486		115,862		7,624
	Investments in partially owned entities				1,168,996		1,166,443		2,553
	Investment in Toys				75,932		83,224		(7,292)
	Real Estate Fund investments				682,002		667,710		14,292
	Mortgage and mezzanine loans receivable, net				42,749		170,972		(128,223)
	Receivable arising from the straight-lining of rents, net				830,381		817,357		13,024
	Deferred leasing and financing costs, net				437,056		411,927		25,129
	Identified intangible assets, net				299,759		311,963		(12,204)
	Assets related to discontinued operations				207,575		314,622		(107,047)
	Other assets				290,544		351,488		(60,944)
		Total assets		$	20,369,352	$	20,097,224	$	272,128
LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND EQUITY
Liabilities:
	Mortgages payable			$	8,913,358	$	8,331,993	$	581,365
	Senior unsecured notes				1,343,442		1,350,855		(7,413)
	Revolving credit facility debt				88,138		295,870		(207,732)
	Accounts payable and accrued expenses				457,858		422,276		35,582
	Deferred revenue				514,605		529,048		(14,443)
	Deferred compensation plan				121,970		116,515		5,455
	Deferred tax liabilities				1,272		1,280		(8)
	Liabilities related to discontinued operations				-		13,950		(13,950)
	Other liabilities				378,551		437,073		(58,522)
		Total liabilities			11,819,194		11,498,860		320,334
Redeemable noncontrolling interests					1,140,831		1,003,620		137,211
Vornado shareholders' equity					6,570,327		6,765,232		(194,905)
Noncontrolling interests in consolidated subsidiaries					839,000		829,512		9,488
		Total liabilities, redeemable noncontrolling interests and equity		$	20,369,352	$	20,097,224	$	272,128

- 14 -

 

CAPITAL STRUCTURE
(unaudited and in thousands, except per share amounts)
Debt:							March 31, 2014
	Consolidated debt:
		Mortgages payable					$	8,913,358
		Senior unsecured notes						1,343,442
		$2.5 billion revolving credit facilities						88,138
								10,344,938
	Pro rata share of non-consolidated debt:
		Toys						1,625,080
		All other partially owned entities						2,328,295
	Less: Noncontrolling interests' share of consolidated debt
			(primarily 1290 Avenue of the Americas and 555 California Street)					(465,000)
Total debt								13,833,313
Perpetual Preferred:				Shares/Units	Par Value
5.00% Preferred Unit (D-16) (1 unit @ $1,000)								1,000
6.625% Series G Preferred Shares				8,000		25.00		200,000
6.625% Series I Preferred Shares				10,800		25.00		270,000
6.875% Series J Preferred Shares				9,850		25.00		246,250
5.70% Series K Preferred Shares				12,000		25.00		300,000
5.40% Series L Preferred Shares				12,000		25.00		300,000
								1,317,250
					March 31, 2014
				Converted	Common
Equity:				Shares	Share Price
Common shares				187,412	$	98.56		18,471,327
Class A units				10,779		98.56		1,062,378
Convertible share equivalents:
	Equity awards - unit equivalents			785		98.56		77,370
	D-13 preferred units			474		98.56		46,717
	G1-G4 units			86		98.56		8,476
	Series A preferred shares			47		98.56		4,632
								19,670,900
Total Market Capitalization							$	34,821,463

- 15 -

 

DEBT ANALYSIS
(unaudited and in thousands)
						As of March 31, 2014
						Total					Variable				Fixed
								Weighted					Weighted				Weighted
								Average					Average				Average
						Amount		Interest Rate			Amount		Interest Rate		Amount		Interest Rate
Consolidated debt						$	10,344,938		4.41%		$	1,455,466		2.47%	$	8,889,472		4.73%
Pro rata share of non-consolidated debt:
	Toys						1,625,080		7.14%			944,432		6.14%		680,648		8.52%
	All other						2,328,295		5.32%			293,418		1.76%		2,034,877		5.83%
Total							14,298,313		4.87%			2,693,316		3.68%		11,604,997		5.14%
Less: Noncontrolling interests' share of consolidated debt
	(primarily 1290 Avenue of the Americas and 555 California Street)						(465,000)					-				(465,000)
Company's pro rata share of total debt						$	13,833,313		4.89%		$	2,693,316		3.68%	$	11,139,997		5.19%
Debt Covenant Ratios: (1)		Senior Unsecured Notes									Revolving Credit Facilities				Unencumbered EBITDA
				Actual													1Q 2014
		Required		Due 2015		Due 2022		Due 2039			Required		Actual				Annualized
Total Outstanding Debt / Total Assets (2)			Less than 65%		43%		43%		46%			Less than 60%		31%		New York	$	350,324
Secured Debt / Total Assets			Less than 50%		36%		36%		39%			Less than 50%		30%		Washington, DC		164,676
Interest Coverage Ratio (Annualized Combined																Retail Properties		68,200
	EBITDA to Annualized Interest Expense)		Greater than 1.50		2.79		2.79		2.79					N/A		Other		39,772
Fixed Charge Coverage					N/A		N/A		N/A			Greater than 1.40		2.55		Total	$	622,972
Unencumbered Assets / Unsecured Debt			Greater than 150%		666%		666%		644%					N/A
Unsecured Debt / Cap Value of Unencumbered Assets					N/A		N/A		N/A			Less than 60%		7%
Unencumbered Coverage Ratio					N/A		N/A		N/A			Greater than 1.50		7.73
				Senior Unsecured Notes
				Due 2015		Due 2022		Due 2039
Settlement Date					3/26/2010		12/7/2011		9/30/2009
Principal Amount					$ 500,000		$ 400,000		$ 452,500
Issue Price					99.834%		99.546%		100.000%
Coupon					4.250%		5.000%		7.875%
Effective economic interest rate					4.287%		5.057%		7.875%
Ratings:
	Moody's				Baa2		Baa2		Baa2
	S&P				BBB		BBB		BBB
	Fitch				BBB		BBB		BBB
Maturity Date / Put Date					4/1/2015		1/15/2022		10/1/2039	(3)
(1)	Our debt covenant ratios are computed in accordance with the terms of our senior unsecured notes and revolving credit facilities, as applicable. The methodology used for these computations may differ significantly from similarly titled ratios of other companies. For additional information regarding the methodology used to compute these ratios, please see our filings with the SEC of our revolving credit facilities, senior debt indentures and applicable prospectuses and prospectus supplements.
(2)	Total assets includes EBITDA capped at 7.5% under the senior unsecured notes and 6.0% under the revolving credit facilities.
(3)	These notes may be redeemed at our option in whole or in part beginning October 1, 2014, at a price equal to the principal amount plus accrued interest.

- 16 -

 

DEBT MATURITIES
(unaudited and in thousands)
			Spread
		Maturity	over	Interest
Property		Date (1)	LIBOR	Rate	2014		2015		2016		2017		2018		Thereafter		Total
1730 M and 1150 17th Street		06/14	L+140	1.55%	$	43,581	$	-	$	-	$	-	$	-	$	-	$	43,581
1550 and 1750 Crystal Drive		11/14		7.81%		70,147		-		-		-		-		-		70,147
2200 / 2300 Clarendon Boulevard		01/15	L+75	0.90%		-		39,747		-		-		-		-		39,747
Senior unsecured notes due 2015		04/15		4.25%		-		499,834		-		-		-		-		499,834
River House Apartments		04/15		5.43%		-		195,546		-		-		-		-		195,546
909 Third Avenue(2)		04/15		5.64%		-		193,762		-		-		-		-		193,762
888 Seventh Avenue		01/16		5.71%		-		-		318,554		-		-		-		318,554
510 5th Avenue		01/16		5.60%		-		-		30,601		-		-		-		30,601
770 Broadway		03/16		5.65%		-		-		353,000		-		-		-		353,000
Bowen Building		06/16		6.14%		-		-		115,022		-		-		-		115,022
Montehiedra Town Center		07/16		6.04%		-		-		120,000		-		-		-		120,000
$1.25 Billion unsecured revolving credit facility		11/16	L+125	-		-		-		-		-		-		-		-
Merchandise Mart		12/16		5.57%		-		-		550,000		-		-		-		550,000
350 Park Avenue		01/17		3.75%		-		-		-		299,095		-		-		299,095
100 West 33rd Street - office and retail		03/17	L+250	2.66%		-		-		-		325,000		-		-		325,000
2011 Crystal Drive		08/17		7.30%		-		-		-		78,353		-		-		78,353
North Bergen (Tonnelle Avenue)		01/18		4.59%		-		-		-		-		75,000		-		75,000
220 20th Street		02/18		4.61%		-		-		-		-		72,346		-		72,346
Two Penn Plaza		03/18		5.13%		-		-		-		-		425,000		-		425,000
River House Apartments		04/18	(3)	1.55%		-		-		-		-		64,000		-		64,000
828-850 Madison Avenue Retail Condominium		06/18		5.29%		-		-		-		-		80,000		-		80,000
$1.25 Billion unsecured revolving credit facility		06/18	L+115	1.31%		-		-		-		-		88,138		-		88,138
220 Central Park South		01/19	L+275	2.90%		-		-		-		-		-		600,000		600,000
435 Seventh Avenue - retail		08/19	L+225	2.41%		-		-		-		-		-		98,000		98,000
4 Union Square South - retail		11/19	L+215	2.31%		-		-		-		-		-		120,000		120,000
Cross-collateralized mortgages on 40
	strip shopping centers	09/20	(4)	4.08%		-		-		-		-		-		617,206		617,206
Eleven Penn Plaza		12/20		3.95%		-		-		-		-		-		450,000		450,000
Borgata Land		02/21		5.14%		-		-		-		-		-		59,089		59,089
West End 25		06/21		4.88%		-		-		-		-		-		101,671		101,671
555 California Street		09/21		5.10%		-		-		-		-		-		600,000		600,000
Senior unsecured notes due 2022		01/22		5.00%		-		-		-		-		-		398,608		398,608
Skyline Properties		02/22		2.97%		-		-		-		-		-		678,000		678,000
1290 Avenue of the Americas		11/22		3.34%		-		-		-		-		-		950,000		950,000
2121 Crystal Drive		03/23		5.51%		-		-		-		-		-		147,982		147,982
666 Fifth Avenue Retail Condominium		03/23		3.61%		-		-		-		-		-		390,000		390,000
Bergen Town Center		04/23		3.56%		-		-		-		-		-		300,000		300,000
2101 L Street		08/24		3.97%		-		-		-		-		-		150,000		150,000
See notes on the following page.

- 17 -

 

DEBT MATURITIES
(unaudited and in thousands)
			Spread
		Maturity	over	Interest
Property		Date (1)	LIBOR	Rate	2014		2015		2016		2017		2018		Thereafter		Total
1215 Clark Street, 200 12th Street &
	251 18th Street	01/25		7.94%	$	-	$	-	$	-	$	-	$	-	$	100,029	$	100,029
Senior unsecured notes due 2039		10/39		7.88%		-		-		-		-		-		445,000		445,000
Other properties		Various				19,872		12,321		-		-		28,714		40,760		101,667
Purchase accounting valuation adjustments		Various				95		(151)		-		-		-		1,016		960
Total					$	133,695	$	941,059	$	1,487,177	$	702,448	$	833,198	$	6,247,361	$	10,344,938
Weighted average rate						5.25%		4.68%		5.70%		3.64%		4.31%		4.15%		4.41%
Fixed rate debt					$	90,114	$	901,312	$	1,487,177	$	377,448	$	664,060	$	5,369,361	$	8,889,472
Fixed weighted average rate expiring						7.04%		4.84%		5.70%		4.49%		5.05%		4.38%		4.73%
Floating rate debt					$	43,581	$	39,747	$	-	$	325,000	$	169,138	$	878,000	$	1,455,466
Floating weighted average rate expiring						1.56%		0.90%		-		2.66%		1.41%		2.73%		2.47%
(1)	Represents the extended maturity for certain loans in which we have the unilateral right to extend.
(2)	On April 16, 2014, we completed a $350 million refinancing of this property. The seven-year interest only loan bears interest at 3.91% and matures in May 2021.
(3)	Interest at the Freddie Mac Reference Note Rate plus 1.53%.
(4)	Comprised of (i) a $557,206 fixed rate loan with an interest rate of 4.27%, and a (ii) $60,000 variable rate loan at LIBOR plus 1.36% (2.36% at March 31, 2014), subject to a LIBOR floor of 1.00%.

- 18 -

 

UNCONSOLIDATED JOINT VENTURES
(unaudited and in thousands)
						As of March 31, 2014
								Debt
				Percentage		Company's		Company's
		Asset		Ownership at		Carrying		Pro rata		100% of
Joint Venture Name		Category		March 31, 2014		Amount		Share		Joint Venture
Toys			Retailer		32.6%	$	75,932	$	1,625,080	$	4,977,482
Alexander's, Inc.			Office/Retail		32.4%	$	167,124	$	335,347	$	1,035,022
India real estate ventures			Office/Land		4.1% to 36.5%		88,563		50,624		202,496
Partially owned office buildings:
	280 Park Avenue		Office		49.5%		251,099		363,744		735,082
	650 Madison Avenue		Office/Retail		20.1%		115,895		161,024		800,000
	Rosslyn Plaza	Office/Residential			43.7% to 50.4%		56,879		16,515		32,761
	One Park Avenue		Office		30.3%		56,242		75,740		250,000
	West 57th Street properties		Office		50.0%		54,270		10,000		20,000
	666 Fifth Avenue Office Condominium		Office		49.5%		42,324		585,624		1,183,079
	330 Madison Avenue		Office		25.0%		28,999		37,500		150,000
	Warner Building		Office		55.0%		15,237		160,985		292,700
	Fairfax Square		Office		20.0%		5,114		13,797		68,982
	1101 17th Street		Office		55.0%		-		17,050		31,000
	Other partially owned office buildings		Office		Various		2,822		26,882		68,984
Other investments:
	Independence Plaza		Residential		50.1%		158,174		275,550		550,000
	Monmouth Mall		Retail		50.0%		6,734		78,514		157,027
	Other investments		Various		Various		119,520		119,399		998,676
						$	1,168,996	$	2,328,295	$	6,575,809

- 19 -

 

UNCONSOLIDATED JOINT VENTURES
(unaudited and in thousands)
			Percentage		Our Share of Net Income (Loss) for the				Our Share of EBITDA for the
			Ownership at		Three Months Ended March 31,				Three Months Ended March 31,
Joint Venture Name			March 31, 2014		2014		2013		2014		2013
Toys				32.6%	$	1,847	$	1,759	$	85,397	$	141,961
New York:
		Alexander's, Inc.		32.4%	$	4,759	$	4,409	$	10,430	$	10,541
		West 57th Street properties		50.0%		(2,599)		172		490		729
		650 Madison Avenue		20.1%		(2,090)		-		2,917		-
		Independence Plaza		50.1%		(2,064)		-		4,336		-
		666 Fifth Avenue Office Condominium		49.5%		2,005		2,019		7,395		5,172
		330 Madison Avenue		25.0%		1,345		1,304		2,267		2,127
		One Park Avenue		30.3%		98		457		1,870		2,104
		280 Park Avenue		49.5%		(51)		(2,569)		5,262		4,449
		Other		Various		163		(187)		1,448		1,331
						1,566		5,605		36,415		26,453
Washington, DC:
		Warner Building		55.0%		(1,486)		(2,346)		2,259		1,369
		Rosslyn Plaza		43.7% to 50.4%		(572)		(446)		1,656		1,798
		1101 17th Street		55.0%		286		384		597		725
		Fairfax Square		20.0%		33		(45)		598		521
		Other		Various		473		360		1,375		1,272
						(1,266)		(2,093)		6,485		5,685
Retail Properties:
		Monmouth Mall		50.0%		517		859		2,391		2,701
		Other		Various		21		42		113		142
						538		901		2,504		2,843
Other:
		Alexander's corporate fee income		32.4%		1,626		1,667		1,626		1,667
		India real estate ventures		4.1% to 36.5%		(137)		(767)		1,824		1,759
		Downtown Crossing, Boston		n/a		-		(2,374)		-		(2,374)
		LNR (1)		n/a		-		18,731		-		20,443
		Lexington (2)		n/a		-		(979)		-		6,931
		Other		Various		(2,195)		75		6,208		7,375
						(706)		16,353		9,658		35,801
					$	132	$	20,766	$	55,062	$	70,782
(1)	On April 19, 2013, LNR was sold for $1.053 billion.
(2)	In the first quarter of 2013, we began accounting for our investment in Lexington as a marketable equity security - available for sale. The 2013 amount represents our share of Lexington's 2012 fourth quarter earnings which was recorded on a one-quarter lag basis.

- 20 -

 

SQUARE FOOTAGEin service
(unaudited and square feet in thousands)
				Owned by Company
			Total
			Portfolio	Total	Office		Retail	Showroom	Other
Segment:
	New York:
		Office	19,841	16,396	16,213		-	183	-
		Retail	2,379	2,164	-		2,164	-	-
		Alexander's (32.4% interest)	2,178	706	287		419	-	-
		Hotel Pennsylvania	1,400	1,400	-		-	-	1,400
		Residential (1,655 units)	1,523	762	-		-	-	762
			27,321	21,428	16,500		2,583	183	2,162
	Washington, DC:
		Office, excluding the Skyline Properties	13,406	11,035	10,218		817	-	-
		Skyline Properties	2,652	2,652	2,613		39	-	-
		Total Office	16,058	13,687	12,831		856	-	-
		Residential (2,414 units)	2,597	2,454	-		-	-	2,454
		Other	379	379	-		9	-	370
			19,034	16,520	12,831		865	-	2,824
	Retail Properties:
		Strip Shopping Centers	14,519	14,140	-		14,140	-	-
		Regional Malls	4,134	2,646	-		2,646	-	-
			18,653	16,786	-		16,786	-	-
	Other:
		Merchandise Mart	3,578	3,569	1,628		99	1,842	-
		555 California Street (70% interest)	1,795	1,257	1,164		93	-	-
		Primarily Warehouses	971	971	-		-	-	971
			6,344	5,797	2,792		192	1,842	971
Total square feet at March 31, 2014			71,352	60,531	32,123		20,426	2,025	5,957
Total square feet at December 31, 2013			71,709	60,825	32,193		20,533	2,150	5,949
					Number of		Number of
Parking Garages (not included above):				Square Feet	Garages		Spaces
	New York			1,668	10		4,909
	Washington, DC			8,935	56		29,611
	Merchandise Mart			558	4		1,681
	555 California Street			168	1		453
	Total at March 31, 2014			11,329	71		36,654
						Building Owned
Number of Toys stores (not included above):				Total	Owned	on Leased Ground		Leased
	Domestic			873	283		219	371
	International			704	78		26	600
	Total Owned and Leased			1,577	361		245	971
	Franchised Stores			185
	Total at March 31, 2014			1,762

- 21 -

 

TOP 30 TENANTS
(unaudited)
			2014
			Annualized		% of 2014
	Square		Revenues		Annualized
Tenants	Footage		(in thousands)		Revenues
U.S. Government		4,221,675	$	148,479		5.6%
Bank of America		789,763		44,638		1.7%
Draftfcb		744,174		40,686		1.5%
AXA Equitable Life Insurance		423,174		37,235		1.4%
Limited Brands		516,848		37,213		1.4%
Macy's		942,678		36,936		1.4%
McGraw-Hill Companies, Inc.		479,557		26,873		1.0%
Ziff Brothers Investments, Inc.		287,030		25,891		1.0%
New York Stock Exchange		381,425		24,137		0.9%
J. Crew		396,215		24,070		0.9%
Hennes & Mauritz		110,646		24,063		0.9%
Madison Square Garden		383,037		22,105		0.8%
Motorola Mobility (owned by Google)		607,872		20,065		0.8%
Sears Holding Company (Kmart Corporation and Sears Corporation)		923,560		19,879		0.8%
Forever 21		125,279		19,533		0.7%
The Home Depot		993,541		19,386		0.7%
Fast Retailing (Uniqlo)		90,732		19,354		0.7%
AOL		230,365		19,155		0.7%
Rainbow Media Holdings		277,530		17,882		0.7%
Family Health International		398,701		17,818		0.7%
Wal-Mart		1,438,730		16,973		0.6%
Hollister		21,741		16,972		0.6%
JCPenney		530,370		16,148		0.6%
Bryan Cave LLP		213,946		15,825		0.6%
Lockheed Martin		331,857		14,743		0.6%
Morrison & Foerster LLP		167,004		14,426		0.5%
Cushman & Wakefield		166,287		13,734		0.5%
Lowe's		976,415		12,808		0.5%
Best Buy		529,812		12,668		0.5%
The TJX Companies, Inc.		592,231		12,083		0.5%

- 22 -

 

LEASE EXPIRATIONS
NEW YORK SEGMENT
(unaudited)
			Our share of
				Square Feet		Weighted Average Annual				Percentage of
		Year of Lease		of Expiring		Rent of Expiring Leases				Annualized
		Expiration		Leases		Total		Per Sq. Ft.		Escalated Rent
	Office:	Month to Month			19,000	$	758,000	$	39.89		0.1%
		Second Quarter 2014			200,000		13,653,000		68.27		1.5%
		Third Quarter 2014			172,000		12,849,000		74.70		1.3%
		Fourth Quarter 2014			216,000		14,978,000		69.34		1.6%
		Total 2014			588,000		41,480,000		70.54		4.4%
		First Quarter 2015			88,000		4,522,000		51.39		0.5%
		Remaining 2015			1,175,000		70,214,000		59.76		7.4%
		2016			1,375,000		83,711,000		60.88		8.8%
		2017			1,183,000		70,554,000		59.64		7.4%
		2018			1,009,000		72,685,000		72.04		7.6%
		2019			1,003,000		63,101,000		62.91		6.7%
		2020			1,291,000		75,445,000		58.44		8.1%
		2021			1,142,000		71,120,000		62.28		7.5%
		2022			1,197,000		74,960,000		62.62		8.1%
		2023			1,575,000		107,223,000		68.08		11.5%
	Retail:	Month to Month			41,000	$	8,608,000	$	209.95		4.4%
		Second Quarter 2014			33,000		2,883,000		87.36		1.5%
		Third Quarter 2014			4,000		455,000		113.75		0.2%
		Fourth Quarter 2014			3,000		593,000		197.67		0.3%
		Total 2014			40,000		3,931,000		98.28		2.0%
		First Quarter 2015			94,000		25,904,000		275.57		13.2%
		Remaining 2015			43,000		5,619,000		130.67		2.9%
		2016			222,000		21,201,000		95.50		10.8%
		2017			20,000		1,964,000		98.20		1.0%
		2018			213,000		41,695,000		195.75		21.3%
		2019			103,000		24,317,000		236.09		12.4%
		2020			106,000		11,881,000		112.08		6.1%
		2021			179,000		13,243,000		73.98		6.8%
		2022			23,000		3,605,000		156.74		1.8%
		2023			93,000		18,805,000		202.20		9.6%

- 23 -

 

LEASE EXPIRATIONS
WASHINGTON, DC SEGMENT
(unaudited)
			Our share of
				Square Feet		Weighted Average Annual				Percentage of
		Year of Lease		of Expiring		Rent of Expiring Leases				Annualized
		Expiration		Leases		Total		Per Sq. Ft.		Escalated Rent
	Office:	Month to Month			205,000	$	8,149,000	$	39.68		1.9%
		Second Quarter 2014			173,000		7,425,000		42.74		1.7%
		Third Quarter 2014			538,000		18,963,000		35.26		4.3%
		Fourth Quarter 2014			211,000		9,004,000		42.71		2.1%
		Total 2014			922,000		35,392,000		38.37		8.1%
		First Quarter 2015			571,000		25,241,000		44.18		5.8%
		Remaining 2015			1,168,000		47,218,000		40.41		10.8%
		2016			1,190,000		51,314,000		43.12		11.7%
		2017			666,000		26,772,000		40.18		6.1%
		2018			1,022,000		44,217,000		43.28		10.1%
		2019			1,314,000		55,496,000		42.23		12.7%
		2020			631,000		32,480,000		51.46		7.4%
		2021			551,000		24,964,000		45.28		5.7%
		2022			866,000		38,218,000		44.15		8.7%
		2023			178,000		7,921,000		44.46		1.8%

- 24 -

 

LEASE EXPIRATIONS
RETAIL PROPERTIES SEGMENT
(unaudited)
			Our share of
				Square Feet		Weighted Average Annual				Percentage of
		Year of Lease		of Expiring		Rent of Expiring Leases				Annualized
		Expiration		Leases		Total		Per Sq. Ft.		Escalated Rent
	Strip Shopping Centers:	Month to Month			30,000	$	808,000	$	27.26		0.4%
		Second Quarter 2014			120,000		2,594,000		21.66		1.4%
		Third Quarter 2014			51,000		1,418,000		27.75		0.8%
		Fourth Quarter 2014			254,000		3,883,000		15.29		2.1%
		Total 2014			425,000		7,895,000		18.59		4.3%
		First Quarter 2015			208,000		3,804,000		18.25		2.1%
		Remaining 2015			258,000		5,486,000		21.30		3.0%
		2016			795,000		11,931,000		15.00		6.5%
		2017			513,000		7,771,000		15.14		4.2%
		2018			1,589,000		21,696,000		13.66		11.8%
		2019			1,370,000		19,332,000		14.11		10.5%
		2020			997,000		12,976,000		13.02		7.0%
		2021			595,000		8,891,000		14.93		4.8%
		2022			996,000		12,363,000		12.41		6.7%
		2023			1,168,000		18,825,000		16.12		10.2%
	Regional Malls:	Month to Month			2,000	$	79,000	$	50.77		0.2%
		Second Quarter 2014			21,000		1,073,000		50.66		2.1%
		Third Quarter 2014			2,000		109,000		56.93		0.2%
		Fourth Quarter 2014			79,000		2,016,000		25.47		4.0%
		Total 2014			102,000		3,198,000		31.28		6.3%
		First Quarter 2015			33,000		1,635,000		49.47		3.2%
		Remaining 2015			65,000		2,358,000		36.28		4.6%
		2016			88,000		3,825,000		43.40		7.5%
		2017			41,000		2,491,000		60.25		4.9%
		2018			70,000		3,602,000		51.57		7.1%
		2019			119,000		4,791,000		40.14		9.4%
		2020			96,000		4,126,000		42.91		8.1%
		2021			384,000		4,386,000		11.43		8.6%
		2022			37,000		1,356,000		36.89		2.7%
		2023			37,000		1,446,000		39.32		2.8%

- 25 -

 

LEASING ACTIVITY
(unaudited)
The leasing activity and related statistics in the table 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.
					New York				Washington, DC			Retail Properties
(square feet in thousands)					Office		Retail		Office			Strips		Malls
Quarter Ended March 31, 2014
	Total square feet leased					947		11		357	(3)		233		25
	Our share of square feet leased:					806		11		342	(3)		233		21
		Initial rent (1)			$	62.39	$	121.16	$	42.49		$	18.15	$	33.18
		Weighted average lease term (years)				10.7		14.9		8.7			6.1		5.7
		Second generation relet space:
			Square feet			565		10		211			207		6
			Cash basis:
				Initial rent (1)	$	65.33	$	120.47	$	41.97		$	18.46	$	46.67
				Prior escalated rent	$	56.91	$	83.46	$	43.30		$	17.91	$	44.34
				Percentage increase (decrease)		14.8%		44.3%		(3.1%)			3.1%		5.3%
			GAAP basis:
				Straight-line rent (2)	$	63.23	$	130.67	$	39.83		$	18.94	$	50.18
				Prior straight-line rent	$	53.49	$	122.17	$	38.33		$	17.32	$	43.74
				Percentage increase		18.2%		7.0%		3.9%			9.4%		14.7%
		Tenant improvements and leasing commissions:
			Per square foot		$	67.53	$	-	$	45.48		$	2.77	$	12.48
			Per square foot per annum		$	6.31	$	-	$	5.23		$	0.45	$	2.19
				Percentage of initial rent		10.1%		-		12.3%			2.5%		6.6%
(1)	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.
(2)	Represents the GAAP basis weighted average rent per square foot that is recognized over the term of the respective leases, and includes the effect of free rent and periodic step-ups in rent.
(3)	Excludes (i) 165 square feet leased to WeWork for a 20-year term at an initial rent of $24.77 per square foot, that will be redeveloped into rental residential apartments. The incremental redevelopment cost is approximately $40,000 and the project is expected to be completed in the second half of 2015, and (ii) 8 square feet of retail space that was leased at an initial rent of $40.74 per square foot.

- 26 -

 

OCCUPANCY, SAME STORE EBITDA AND RESIDENTIAL STATISTICS
(unaudited)
Occupancy and Same Store EBITDA:
						New York	Washington, DC(1)	Retail Properties
Occupancy rate at:
	March 31, 2014					97.0%	83.3%	94.2%
	December 31, 2013					96.8%	83.4%	94.6%
	March 31, 2013					96.1%	83.8%	94.3%
GAAP basis same store EBITDA % increase (decrease):
	Three months ended March 31, 2014 vs. March 31, 2013					6.2%(2)	(2.5%)	2.2%
	Three months ended March 31, 2014 vs. December 31, 2013					(4.1%)(3)	0.1%	0.2%
Cash basis same store EBITDA % increase (decrease):
	Three months ended March 31, 2014 vs. March 31, 2013					10.1%(2)	0.5%	2.4%
	Three months ended March 31, 2014 vs. December 31, 2013					(2.7%)(3)	0.9%	1.3%
(1)	The total office occupancy rates for the Washington, DC segment were as follows:
		March 31, 2014	80.5%
		December 31, 2013	80.7%
		March 31, 2013	80.9%
(2)	Excluding the Hotel Pennsylvania, same store EBITDA increased by 6.7% and 10.7% on a GAAP basis and cash basis, respectively.
(3)	Excluding the Hotel Pennsylvania, same store EBITDA increased by 1.1% and 3.4% on a GAAP basis and cash basis, respectively.
Residential Statistics:
					Average Monthly
			Number of Units	Occupancy Rate	Rent Per Unit
	New York:
		March 31, 2014	1,655	96.2%	$	2,858
		December 31, 2013	1,655	94.8%	$	2,864
		March 31, 2013	1,655	96.8%	$	2,659
	Washington, DC:
		March 31, 2014	2,414	96.8%	$	2,063
		December 31, 2013	2,405	96.3%	$	2,083
		March 31, 2013	2,414	97.7%	$	2,119

- 27 -

 

CAPITAL EXPENDITURES,
TENANT IMPROVEMENTS AND LEASING COMMISSIONS
CONSOLIDATED
(unaudited and in thousands)
		Three Months Ended		Year Ended
Capital expenditures (accrual basis):		March 31, 2014		2013		2012
Expenditures to maintain assets		$	12,208	$	73,130	$	69,912
Tenant improvements			57,964		152,319		177,743
Leasing commissions			18,095		56,638		57,961
Non-recurring capital expenditures			84		12,099		6,902
Total capital expenditures and leasing commissions (accrual basis)			88,351		294,186		312,518
Adjustments to reconcile to cash basis:
	Expenditures in the current year applicable to prior periods		40,186		155,035		105,350
	Expenditures to be made in future periods for the current period		(56,023)		(150,067)		(170,744)
Total capital expenditures and leasing commissions (cash basis)		$	72,514	$	299,154	$	247,124
Our share of square feet leased			1,413		5,525		5,217
Tenant improvements and leasing commissions per square foot per annum		$	5.33	$	4.33	$	4.16
Percentage of initial rent			10.6%		9.5%		9.6%
Development and redevelopment expenditures:
	Springfield Town Center	$	25,172	$	68,716	$	18,278
	Marriott Marquis Times Square - retail and signage		12,822		40,356		9,092
	330 West 34th Street		9,541		6,832		8
	220 Central Park South		9,034		243,687		12,191
	608 Fifth Avenue		7,248		3,492		-
	Metropolitan Park 4 & 5		4,517		6,289		3,008
	7 West 34th Street		3,044		-		-
	Wayne Towne Center		2,419		4,927		3,452
	Other		16,856		95,118		110,844
		$	90,653	$	469,417	$	156,873

- 28 -

 

CAPITAL EXPENDITURES,
TENANT IMPROVEMENTS AND LEASING COMMISSIONS
NEW YORK SEGMENT
(unaudited and in thousands)
		Three Months Ended		Year Ended
Capital expenditures (accrual basis):		March 31, 2014		2013		2012
Expenditures to maintain assets		$	8,931	$	34,553	$	27,434
Tenant improvements			40,311		87,275		71,572
Leasing commissions			14,018		39,348		27,573
Non-recurring capital expenditures			84		11,579		5,822
Total capital expenditures and leasing commissions (accrual basis)			63,344		172,755		132,401
Adjustments to reconcile to cash basis:
	Expenditures in the current year applicable to prior periods		18,716		56,345		41,975
	Expenditures to be made in future periods for the current period		(40,184)		(91,107)		(76,283)
Total capital expenditures and leasing commissions (cash basis)		$	41,876	$	137,993	$	98,093
Our share of square feet leased			817		2,145		1,939
Tenant improvements and leasing commissions per square foot per annum		$	6.19	$	5.89	$	5.48
Percentage of initial rent			9.8%		8.1%		8.8%
Development and redevelopment expenditures:
	Marriott Marquis Times Square - retail and signage	$	12,822	$	40,356	$	9,092
	330 West 34th Street		9,541		6,832		8
	608 Fifth Avenue		7,248		3,492		-
	7 West 34th Street		3,044		-		-
	Other		6,526		35,305		42,460
		$	39,181	$	85,985	$	51,560

- 29 -

 

CAPITAL EXPENDITURES,
TENANT IMPROVEMENTS AND LEASING COMMISSIONS
WASHINGTON, DC SEGMENT
(unaudited and in thousands)
		Three Months Ended		Year Ended
Capital expenditures (accrual basis):		March 31, 2014		2013		2012
Expenditures to maintain assets		$	1,521	$	22,165	$	20,582
Tenant improvements			11,680		39,156		50,384
Leasing commissions			2,322		9,551		13,151
Non-recurring capital expenditures			-		-		-
Total capital expenditures and leasing commissions (accrual basis)			15,523		70,872		84,117
Adjustments to reconcile to cash basis:
	Expenditures in the current year applicable to prior periods		12,186		26,075		24,370
	Expenditures to be made in future periods for the current period		(12,807)		(36,702)		(43,600)
Total capital expenditures and leasing commissions (cash basis)		$	14,902	$	60,245	$	64,887
Our share of square feet leased			342		1,392		1,901
Tenant improvements and leasing commissions per square foot per annum		$	5.23	$	4.75	$	4.86
Percentage of initial rent			12.3%		11.9%		12.0%
Development and redevelopment expenditures:
	Metropolitan Park 4 & 5	$	4,517	$	6,289	$	3,008
	Other		7,068		35,412		36,326
		$	11,585	$	41,701	$	39,334

- 30 -

 

CAPITAL EXPENDITURES,
TENANT IMPROVEMENTS AND LEASING COMMISSIONS
RETAIL PROPERTIES SEGMENT
(unaudited and in thousands)
		Three Months Ended		Year Ended
Capital expenditures (accrual basis):		March 31, 2014		2013		2012
Expenditures to maintain assets		$	88	$	5,664	$	4,676
Tenant improvements			815		12,431		9,052
Leasing commissions			95		2,113		2,368
Non-recurring capital expenditures			-		-		-
Total capital expenditures and leasing commissions (accrual basis)			998		20,208		16,096
Adjustments to reconcile to cash basis:
	Expenditures in the current year applicable to prior periods		2,566		5,562		10,353
	Expenditures to be made in future periods for the current period		(910)		(14,011)		(7,754)
Total capital expenditures and leasing commissions (cash basis)		$	2,654	$	11,759	$	18,695
Our share of square feet leased			254		1,988		1,377
Tenant improvements and leasing commissions per square foot per annum		$	0.59	$	1.33	$	1.04
Percentage of initial rent			3.0%		6.6%		5.2%
Development and redevelopment expenditures:
	Springfield Town Center	$	25,172	$	68,716	$	18,278
	Wayne Towne Center		2,419		4,927		3,452
	Other		2,303		20,283		31,816
		$	29,894	$	93,926	$	53,546

- 31 -

 

CAPITAL EXPENDITURES,
TENANT IMPROVEMENTS AND LEASING COMMISSIONS
OTHER
(unaudited and in thousands)
		Three Months Ended			Year Ended
Capital expenditures (accrual basis):		March 31, 2014			2013			2012
Expenditures to maintain assets		$	1,668		$	10,748		$	17,220
Tenant improvements			5,158			13,457			46,735
Leasing commissions			1,660			5,626			14,869
Non-recurring capital expenditures			-			520			1,080
Total capital expenditures and leasing commissions (accrual basis)			8,486			30,351			79,904
Adjustments to reconcile to cash basis:
	Expenditures in the current year applicable to prior periods		6,718			67,053			28,652
	Expenditures to be made in future periods for the current period		(2,122)			(8,247)			(43,107)
Total capital expenditures and leasing commissions (cash basis)		$	13,082	(1)	$	89,157	(1)	$	65,449	(1)
Development and redevelopment expenditures:
	220 Central Park South	$	9,034		$	243,687		$	12,191
	Other		959			4,118			242
		$	9,993		$	247,805		$	12,433
(1)	Includes tenant improvements and leasing commissions aggregating $4,462 in the three months ended March 31, 2014, and $61,895 and $24,354 in the years ended December 31, 2013 and 2012, respectively, in connection with the 608,000 square foot Motorola Mobility lease at the Merchandise Mart.

- 32 -

 

DEVELOPMENT COSTS AND CONSTRUCTION IN PROGRESS
(unaudited and in thousands, except square feet)
			Square Feet
					At March 31, 2014
	Development Projects				Total			Development Costs Expended		Land and Acquisition Costs
	New York:
		1535 Broadway - Marriott Marquis - Retail & Signage	103,000		$	307,708		$	67,708	$	240,000
		220 Central Park South - Residential Condominiums	472,000	(1)		510,027			58,137		451,890
		Other				103,438			103,438		-
	Total New York					921,173			229,283		691,890
	Washington, DC:
		Metropolitan Park 4 & 5 - Residential Rental / Retail	618,000			54,535			14,535		40,000
		Other				75,032			75,032		-
	Total Washington, DC					129,567			89,567		40,000
	Retail Properties:
		Springfield Town Center	690,000			337,252	(2)		97,252		240,000
		Other				20,725			20,725		-
	Total Retail Properties					357,977			117,977		240,000
	Other Projects					1,748			1,748		-
	Total Amount on the Balance Sheet				$	1,410,465		$	438,575	$	971,890
			Square Feet			Total
	Undeveloped Land
	Washington, DC:
	1851 South Bell Street - Office		748,000		$	33,732
	Metropolitan Park 6, 7 & 8:
		Retail	23,818
		Residential (1,403 Units)				82,898
	PenPlace:
		Office	553,000
		Hotel (300 Units)				46,866
	Square 649 - Office		675,000			11,597
	Total				$	175,093
	(1)	Zoning square feet.
	(2)	Net of $20,000 non-cash impairment loss booked in the quarter ended March 31, 2014.

- 33 -

 

NEW YORK SEGMENT
PROPERTY TABLE
					Weighted		Square Feet
					Average				Under Development
			%	%	Annual Rent		Total		or Not Available	Encumbrances
Property			Ownership	Occupancy	PSF (1)		Property	In Service	for Lease	(in thousands)		Major Tenants
NEW YORK:
Penn Plaza:
One Penn Plaza												Cisco, MWB Leasing, Parsons Brinkerhoff,
	(ground leased through 2098)											United Health Care, United States Customs Department,
		-Office	100.0%	95.6%	$	55.74	2,240,000	2,240,000	-			URS Corporation Group Consulting, Lion Resources
		-Retail	100.0%	98.4%		117.56	269,000	269,000	-			Bank of America, Kmart Corporation
			100.0%	95.9%		62.37	2,509,000	2,509,000	-	$	-
Two Penn Plaza												EMC, Forest Electric, Information Builders, Inc.,
		-Office	100.0%	96.8%		52.89	1,572,000	1,572,000	-			Madison Square Garden, McGraw-Hill Companies, Inc.
		-Retail	100.0%	43.7%		157.19	47,000	47,000	-			Chase Manhattan Bank
			100.0%	95.3%		55.92	1,619,000	1,619,000	-		425,000
Eleven Penn Plaza
		-Office	100.0%	99.5%		56.18	1,131,000	1,131,000	-			Macy's, Madison Square Garden, Rainbow Media Holdings
		-Retail	100.0%	74.4%		189.32	17,000	17,000	-			PNC Bank National Association
			100.0%	99.1%		58.15	1,148,000	1,148,000	-		450,000
100 West 33rd Street
		-Office	100.0%	99.7%		53.34	848,000	848,000	-		223,242	Draftfcb, Rocket Fuel
Manhattan Mall
		-Retail	100.0%	96.1%		118.56	256,000	256,000	-		101,758	JCPenney, Aeropostale, Express, Victoria's Secret
330 West 34th Street
	(ground leased through 2148 - 34.8%
	ownership interest in the land)
		-Office	100.0%	-		-	622,000	-	622,000			New York & Co. (lease not commenced)
		-Retail	100.0%	-		-	13,000	-	13,000
			100.0%	-		-	635,000	-	635,000		50,150
435 Seventh Avenue
		-Retail	100.0%	100.0%		244.24	43,000	43,000	-		98,000	Hennes & Mauritz
7 West 34th Street
		-Office	100.0%	100.0%		38.71	417,000	113,000	304,000
		-Retail	100.0%	100.0%		225.20	23,000	23,000	-			Express
			100.0%	100.0%		70.25	440,000	136,000	304,000		-
484 Eighth Avenue
		-Retail	100.0%	80.6%		70.09	16,000	16,000	-		-	T.G.I. Friday's
431 Seventh Avenue
		-Retail	100.0%	100.0%		217.74	10,000	10,000	-		-
488 Eighth Avenue
		-Retail	100.0%	100.0%		71.17	6,000	6,000	-		-
267 West 34th Street
		-Retail	100.0%	100.0%		333.93	6,000	6,000	-		-
	Total Penn Plaza						7,536,000	6,597,000	939,000		1,348,150

- 34 -

 

NEW YORK SEGMENT
PROPERTY TABLE
					Weighted			Square Feet
					Average					Under Development
			%	%	Annual Rent			Total		or Not Available	Encumbrances
Property			Ownership	Occupancy	PSF (1)			Property	In Service	for Lease	(in thousands)		Major Tenants
NEW YORK (Continued):
Midtown East:
909 Third Avenue													CMGRP Inc., Forest Laboratories, Geller & Company,
	(ground leased through 2063)												Morrison Cohen LLP, Robeco USA Inc.,
		-Office	100.0%	100.0%	$	55.56	(2)	1,343,000	1,343,000	-	$	193,762	United States Post Office, The Procter & Gamble Distributing LLC
150 East 58th Street													Castle Harlan, Tournesol Realty LLC. (Peter Marino),
		-Office	100.0%	95.6%		60.94		539,000	539,000	-			Various showroom tenants
		-Retail	100.0%	100.0%		170.01		2,000	2,000	-
			100.0%	95.6%		61.34		541,000	541,000	-		-
715 Lexington
	(ground leased through 2041)
		-Retail	100.0%	100.0%		228.64		23,000	23,000	-		-	New York & Company, Zales
966 Third Avenue
		-Retail	100.0%	100.0%		70.18		7,000	7,000	-		-	McDonald's
968 Third Avenue
		-Retail	50.0%	100.0%		233.22		6,000	6,000	-		-	Capital One Financial Corporation
	Total Midtown East							1,920,000	1,920,000	-		193,762
Midtown West:
888 Seventh Avenue
	(ground leased through 2067)												Soros Fund, TPG-Axon Capital,
		-Office	100.0%	94.1%		82.50		862,000	862,000	-			Vornado Executive Headquarters
		-Retail	100.0%	100.0%		101.02		15,000	15,000	-			Redeye Grill L.P.
			100.0%	94.2%		82.82		877,000	877,000	-		318,554
1740 Broadway
		-Office	100.0%	100.0%		66.43		582,000	582,000	-			Davis & Gilbert, Limited Brands
		-Retail	100.0%	100.0%		102.40		19,000	19,000	-			Brasserie Cognac, Citibank
			100.0%	100.0%		67.56		601,000	601,000	-		-
57th Street - 5 buildings
		-Office	50.0%	93.1%		53.65		135,000	135,000	-			Various
		-Retail	50.0%	79.8%		57.21		53,000	53,000	-
			50.0%	89.4%		54.65		188,000	188,000	-		20,000
825 Seventh Avenue
		-Office	50.0%	100.0%		45.44		165,000	165,000	-		18,834	Young & Rubicam
		-Retail	100.0%	100.0%		238.97		4,000	4,000	-			Lindy's
				100.0%		50.02		169,000	169,000	-
	Total Midtown West							1,835,000	1,835,000	-		357,388
Park Avenue:
280 Park Avenue													Cohen & Steers Inc., Credit Suisse (USA) Inc.,
		-Office	49.5%	100.0%		91.83		1,218,000	729,000	489,000			Investcorp International Inc.
		-Retail	49.5%	100.0%		216.21		18,000	4,000	14,000			Scottrade Inc.
			49.5%	100.0%		93.64		1,236,000	733,000	503,000		735,082
350 Park Avenue													Kissinger Associates Inc., Ziff Brothers Investment Inc.,
		-Office	100.0%	99.0%		87.92		552,000	552,000	-			MFA Financial Inc., M&T Bank
		-Retail	100.0%	100.0%		190.34		17,000	17,000	-			Fidelity Investment, AT&T Wireless, Valley National Bank
			100.0%	99.0%		90.98		569,000	569,000	-		299,095
	Total Park Avenue							1,805,000	1,302,000	503,000		1,034,177

- 35 -

 

NEW YORK SEGMENT
PROPERTY TABLE
					Weighted		Square Feet
					Average					Under Development
			%	%	Annual Rent		Total			or Not Available	Encumbrances
Property			Ownership	Occupancy	PSF (1)		Property		In Service	for Lease	(in thousands)		Major Tenants
NEW YORK (Continued):
Grand Central:
90 Park Avenue													Alston & Bird, Amster, Rothstein & Ebenstein,
		-Office	100.0%	97.0%	$	68.12	903,000		903,000	-			Capital One, First Manhattan Consulting
		-Retail	100.0%	100.0%		88.11	26,000		26,000	-			Citibank
			100.0%	97.1%		68.68	929,000		929,000	-	$	-
330 Madison Avenue													GPFT Holdco LLC, HSBC Bank AFS, Jones Lang LaSalle Inc.,
		-Office	25.0%	93.4%		66.48	801,000		801,000	-			Wells Fargo
		-Retail	25.0%	100.0%		287.37	32,000		32,000	-			Ann Taylor Retail Inc., Citibank
			25.0%	93.7%		74.96	833,000		833,000	-		150,000
510 Fifth Avenue
		-Retail	100.0%	90.6%		135.50	64,000		64,000	-		30,602	Joe Fresh
	Total Grand Central						1,826,000		1,826,000	-		180,602
Madison/Fifth:
640 Fifth Avenue													Fidelity Investments, Janus Capital Group Inc., Citibank,
													GSL Enterprises Inc., Scout Capital Management,
		-Office	100.0%	95.1%		76.99	262,000		262,000	-			Legg Mason Investment Counsel
		-Retail	100.0%	100.0%		259.51	62,000		62,000	-			Citibank, Hennes & Mauritz
			100.0%	96.0%		111.91	324,000		324,000	-		-
666 Fifth Avenue													Citibank, Fulbright & Jaworski, Colliers International NY LLC,
		-Office (Office Condo)	49.5%	89.3%		73.86	1,372,000		1,372,000	-		1,183,079	Integrated Holding Group, Vinson & Elkins LLP
		-Retail (Office Condo)	49.5%	88.2%		169.67	46,000		46,000	-		-	HSBC Bank USA
		-Retail (Retail Condo)	100.0%	100.0%		355.20	114,000	(3)	114,000	-		390,000	Uniqlo, Hollister, Swatch
				90.1%		97.67	1,532,000		1,532,000	-		1,573,079
595 Madison Avenue													Beauvais Carpets, Levin Capital Strategies LP,
		-Office	100.0%	100.0%		70.35	292,000		292,000	-			Cosmetech Mably Int'l LLC.
		-Retail	100.0%	100.0%		478.76	30,000		30,000	-			Coach, Prada
			100.0%	100.0%		108.40	322,000		322,000	-		-
650 Madison Avenue
		-Office	20.1%	91.8%		99.67	524,000		524,000	-			Polo Ralph Lauren
		-Retail	20.1%	100.0%		261.96	71,000		71,000	-			Crate & Barrel
			20.1%	92.8%		119.04	595,000		595,000	-		800,000
689 Fifth Avenue
		-Office	100.0%	100.0%		70.33	82,000		82,000	-			Yamaha Artist Services Inc.
		-Retail	100.0%	100.0%		712.41	17,000		17,000	-			MAC Cosmetics, Massimo Dutti
			100.0%	100.0%		180.59	99,000		99,000	-		-
655 Fifth Avenue
		-Retail	92.5%	100.0%		154.03	57,000		57,000	-		-	Ferragamo
	Total Madison/Fifth						2,929,000		2,929,000	-		2,373,079

- 36 -

 

NEW YORK SEGMENT
PROPERTY TABLE
					Weighted		Square Feet
					Average				Under Development
			%	%	Annual Rent		Total		or Not Available	Encumbrances
Property			Ownership	Occupancy	PSF (1)		Property	In Service	for Lease	(in thousands)		Major Tenants
NEW YORK (Continued):
Midtown South:
770 Broadway
		-Office	100.0%	100.0%	$	58.03	960,000	960,000	-			AOL, J. Crew, Facebook, Structure Tone
		-Retail	100.0%	100.0%		53.53	166,000	166,000	-			Ann Taylor Retail Inc., Bank of America, Kmart Corporation
			100.0%	100.0%		57.36	1,126,000	1,126,000	-	$	353,000
One Park Avenue												Coty Inc., New York University,
		-Office	30.3%	96.4%		44.85	864,000	864,000	-			Public Service Mutual Insurance
		-Retail	30.3%	100.0%		64.02	79,000	79,000	-			Bank of Baroda, Citibank, Equinox,
												Men's Wearhouse (lease not commenced)
			30.3%	96.7%		46.45	943,000	943,000	-		250,000
4 Union Square South
		-Retail	100.0%	100.0%		84.79	206,000	206,000	-		120,000	Burlington Coat Factory, Whole Foods Market, DSW, Forever 21
692 Broadway
		-Retail	100.0%	100.0%		83.64	35,000	35,000	-		-	Equinox, Major League Baseball
	Total Midtown South						2,310,000	2,310,000	-		723,000
Rockefeller Center:
1290 Avenue of the Americas												AXA Equitable Life Insurance, Morrison & Foerster LLP,
												Hachette Book Group Inc., Bryan Cave LLP,
												Warner Music Group, Cushman & Wakefield, Fitzpatrick,
		-Office	70.0%	94.5%		72.21	2,042,000	2,042,000	-			Cella, Harper & Scinto, Columbia University, SSB Realty LLC
		-Retail	70.0%	100.0%		140.94	66,000	66,000	-			Duane Reade, JPMorgan Chase Bank, Sovereign Bank
			70.0%	94.7%		74.36	2,108,000	2,108,000	-		950,000
608 Fifth Avenue (ground leased through 2026)
		-Office	100.0%	85.9%		53.21	83,000	83,000	-
		-Retail	100.0%	100.0%		365.75	44,000	44,000	-			Topshop (lease not commenced)
			100.0%	90.8%		161.49	127,000	127,000	-		-
	Total Rockefeller Center						2,235,000	2,235,000	-		950,000
Wall Street/Downtown:
20 Broad Street (ground leased through 2081)
		-Office	100.0%	99.0%		56.43	472,000	472,000	-		-	New York Stock Exchange
40 Fulton Street
		-Office	100.0%	99.0%		36.52	244,000	244,000	-			Market News International Inc., Sapient Corp.
		-Retail	100.0%	100.0%		93.60	5,000	5,000	-			TD Bank
			100.0%	99.0%		37.67	249,000	249,000	-		-
	Total Wall Street/Downtown						721,000	721,000	-		-
Times Square:
1540 Broadway												Forever 21, Planet Hollywood, Disney, Sunglass Hut,
		-Retail	100.0%	100.0%		202.31	160,000	160,000	-		-	MAC Cosmetics, U.S. Polo
1535 Broadway (Marriott Marquis - retail and signage)
	(ground and building leased through 2032)
		-Retail	100.0%	-		-	64,000	-	64,000		-
	Total Times Square						224,000	160,000	64,000		-

- 37 -

 

NEW YORK SEGMENT
PROPERTY TABLE
					Weighted		Square Feet
					Average				Under Development
			%	%	Annual Rent		Total		or Not Available	Encumbrances
Property			Ownership	Occupancy	PSF (1)		Property	In Service	for Lease	(in thousands)		Major Tenants
NEW YORK (Continued):
Soho:
478-486 Broadway - 2 buildings
		-Retail	100.0%	100.0%	$	133.67	85,000	85,000	-	$	-	Topshop, Madewell, J. Crew
443 Broadway
		-Retail	100.0%	100.0%		123.30	16,000	16,000	-		-	Necessary Clothing
334 Canal Street
		-Retail	100.0%	-		-	15,000	-	15,000		-
155 Spring Street
		-Retail	100.0%	100.0%		92.36	49,000	49,000	-		-	Sigrid Olsen
148 Spring Street
		-Retail	100.0%	100.0%		104.23	7,000	7,000	-		-
150 Spring Street
		-Retail	100.0%	100.0%		225.56	7,000	7,000	-		-	Sandro
	Total Soho						179,000	164,000	15,000		-
Upper East Side:
828-850 Madison Avenue
		-Retail	100.0%	100.0%		563.89	18,000	18,000	-		80,000	Gucci, Chloe, Cartier
677-679 Madison Avenue
		-Retail	100.0%	100.0%		440.60	8,000	8,000	-		-	Anne Fontaine
40 East 66th Street
		-Retail	100.0%	100.0%		768.78	11,000	11,000	-		-	John Varvatos, Nespresso USA, J. Crew
1131 Third Avenue
		-Retail	100.0%	100.0%		164.55	22,000	11,000	11,000		-	Nike, Carlo Pazolini
	Total Upper East Side						59,000	48,000	11,000		80,000
New Jersey:
Paramus
		-Office	100.0%	97.6%		22.29	129,000	129,000	-		-	Vornado's Administrative Headquarters
Washington D.C.:
3040 M Street
		-Retail	100.0%	100.0%		61.52	44,000	44,000	-		-	Nike, Barneys
New York Office:
	Total			96.4%	$	64.13	21,256,000	19,841,000	1,415,000	$	6,419,798
	Vornado's Ownership Interest			96.9%	$	62.64	17,563,000	16,396,000	1,167,000	$	4,486,585
New York Retail:
	Total			97.2%	$	163.51	2,496,000	2,379,000	117,000	$	820,360
	Vornado's Ownership Interest			97.1%	$	163.35	2,274,000	2,164,000	110,000	$	820,360

- 38 -

 

NEW YORK SEGMENT
PROPERTY TABLE
					Weighted		Square Feet
					Average				Under Development
			%	%	Annual Rent		Total		or Not Available	Encumbrances
Property			Ownership	Occupancy	PSF (1)		Property	In Service	for Lease	(in thousands)		Major Tenants
NEW YORK (Continued):
ALEXANDER'S, INC.:
New York:
731 Lexington Avenue, Manhattan
		-Office	32.4%	100.0%	$	96.03	885,000	885,000	-	$	300,000	Bloomberg
		-Retail	32.4%	100.0%		170.27	174,000	174,000	-		320,000	Hennes & Mauritz, The Home Depot, The Container Store
			32.4%	100.0%		107.25	1,059,000	1,059,000	-		620,000
Rego Park I, Queens (4.8 acres)			32.4%	100.0%		37.97	343,000	343,000	-		78,246	Sears, Burlington Coat Factory, Bed Bath & Beyond, Marshalls
Rego Park II (adjacent to Rego Park I),
	Queens (6.6 acres)		32.4%	97.8%		40.22	609,000	609,000	-		268,776	Century 21, Costco, Kohl's, TJ Maxx, Toys "R" Us
Flushing, Queens (4) (1.0 acre)			32.4%	100.0%		15.74	167,000	167,000	-		-	New World Mall LLC
New Jersey:
Paramus, New Jersey
	(30.3 acres ground leased to IKEA		32.4%	100.0%		-	-	-	-		68,000	IKEA (ground lessee)
	through 2041)
Property under Development:
Rego Park II Apartment Tower, Queens, NY			32.4%	-		-	250,000	-	250,000		-
Property to be Developed:
Rego Park III (adjacent to Rego Park II),			32.4%	-		-	-	-	-		-
	Queens, NY (3.4 acres)
	Total Alexander's			99.4%		70.56	2,428,000	2,178,000	250,000		1,035,022
Hotel Pennsylvania:
	-Hotel (1,700 Keys)		100.0%	-		-	1,400,000	1,400,000	-		-
Residential:
50-70 W 93rd Street (327 units)			49.9%	94.8%		-	283,000	283,000	-		45,825
Independence Plaza, Tribeca (1,328 units)
		-Residential	50.1%	96.5%		-	1,190,000	1,190,000	-
		-Retail	50.1%	100.0%		72.05	50,000	50,000	-
							1,240,000	1,240,000	-		550,000
	Total Residential			96.2%			1,523,000	1,523,000	-		595,825
Total New York				96.7%	$	74.67	29,103,000	27,321,000	1,782,000	$	8,871,005
Vornado's Ownership Interest				97.0%	$	74.38	22,787,000	21,428,000	1,359,000	$	5,940,708
(1)	Weighted Average Annual Rent PSF excludes ground rent, storage rent and garages.
(2)	Excludes US Post Office leased through 2038 (including four five-year renewal options) for which the annual escalated rent is $9.81 PSF.
(3)	75,000 square feet is leased from the office condo.
(4)	Leased by Alexander's through January 2037.

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WASHINGTON, DC SEGMENT
PROPERTY TABLE
				Weighted		Square Feet
				Average				Under Development
		%	%	Annual Rent		Total		or Not Available	Encumbrances
Property		Ownership	Occupancy	PSF (1)		Property	In Service	for Lease	(in thousands)		Major Tenants
WASHINGTON, DC:
Crystal City:
2011-2451 Crystal Drive - 5 buildings		100.0%	86.1%	$	43.87	2,317,000	2,317,000	-	$	226,335	General Services Administration, Lockheed Martin,
											Conservation International, Smithsonian Institution,
											Natl. Consumer Coop. Bank, Council on Foundations,
											Vornado / Charles E. Smith Headquarters, KBR, Scitor Corp.,
											Food Marketing Institute, DRS Technologies
S. Clark Street / 12th Street - 5 buildings		100.0%	71.8%		42.92	1,528,000	1,528,000	-		60,365	General Services Administration,
											SAIC, Inc., Boeing, L-3 Communications,
											The Int'l Justice Mission, Management Systems International
1550-1750 Crystal Drive /		100.0%	76.0%		41.46	1,486,000	1,486,000	-		112,231	General Services Administration,
	241-251 18th Street - 4 buildings										Alion Science & Technologies, Booz Allen,
											Arete Associates, Battelle Memorial Institute
1800, 1851 and 1901 South Bell Street		100.0%	95.4%		39.40	869,000	506,000	363,000		-	General Services Administration,
	- 3 buildings										Lockheed Martin
2100 / 2200 Crystal Drive - 2 buildings		100.0%	100.0%		33.90	529,000	529,000	-		-	General Services Administration,
											Public Broadcasting Service
223 23rd Street / 2221 South Clark Street		100.0%	-		-	309,000	-	309,000		-	WeWork
	- 2 buildings
2001 Jefferson Davis Highway		100.0%	65.7%		36.05	162,000	162,000	-		-	Institute for the Psychology Sciences, VT Aepco, Inc.,
											National Crime Prevention
Crystal City Shops at 2100		100.0%	99.0%		22.73	80,000	80,000	-		-	Various
Crystal Drive Retail		100.0%	100.0%		44.43	57,000	57,000	-		-	Various
Total Crystal City		100.0%	82.2%		41.32	7,337,000	6,665,000	672,000		398,931
Central Business District:
Universal Buildings		100.0%	96.5%		44.56	678,000	678,000	-		-	Family Health International, WeWork
	1825-1875 Connecticut Avenue, NW
	- 2 buildings
Warner Building - 1299 Pennsylvania		55.0%	75.5%		69.13	614,000	614,000	-		292,700	Baker Botts LLP, General Electric, Cooley LLP,
	Avenue, NW										Facebook, Live Nation
2101 L Street, NW		100.0%	99.0%		64.70	380,000	380,000	-		150,000	Greenberg Traurig, LLP, US Green Building Council,
											American Insurance Association, RTKL Associates,
											Cassidy & Turley
1750 Pennsylvania Avenue, NW		100.0%	88.2%		47.26	278,000	278,000	-		-	General Services Administration, UN Foundation, AOL
1150 17th Street, NW		100.0%	90.1%		45.56	241,000	241,000	-		28,728	American Enterprise Institute
Bowen Building - 875 15th Street, NW		100.0%	96.7%		66.79	231,000	231,000	-		115,022	Paul, Hastings, Janofsky & Walker LLP,
											Millennium Challenge Corporation
1101 17th Street, NW		55.0%	88.1%		47.14	213,000	213,000	-		31,000	AFSCME, Verto Solutions
1730 M Street, NW		100.0%	89.9%		46.44	202,000	202,000	-		14,853	General Services Administration
	(ground rent through 2061)

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WASHINGTON, DC SEGMENT
PROPERTY TABLE
				Weighted		Square Feet
				Average				Under Development
	%		%	Annual Rent		Total		or Not Available		Encumbrances
Property	Ownership		Occupancy	PSF (1)		Property	In Service	for Lease		(in thousands)		Major Tenants
WASHINGTON, DC (Continued):
1726 M Street, NW	100.0%		97.8%	$	41.73	91,000	91,000	-		$	-	Aptima, Inc., Nelnet Corporation
Waterfront Station	2.5%		-		-	1,058,000	-	1,058,000	*		-
1501 K Street, NW	5.0%		97.9%		68.47	380,000	380,000	-			-	Sidley Austin LLP, UBS
1399 New York Avenue, NW	100.0%		93.0%		73.98	128,000	128,000	-			-	Bloomberg
Total Central Business District			91.8%		54.50	4,494,000	3,436,000	1,058,000			632,303
Skyline Properties:
Skyline Place - 7 buildings	100.0%		48.6%		32.94	2,134,000	2,134,000	-			562,202	General Services Administration, SAIC, Inc., Analytic Services,
												Northrop Grumman, Axiom Resource Management,
												Booz Allen, Intellidyne, Inc.
One Skyline Tower	100.0%		100.0%		33.17	518,000	518,000	-			139,386	General Services Administration
Total Skyline Properties	100.0%		58.7%		33.02	2,652,000	2,652,000	-			701,588
Rosslyn / Ballston:
2200 / 2300 Clarendon Blvd	100.0%		95.2%		43.21	638,000	638,000	-			39,748	Arlington County, General Services Administration,
(Courthouse Plaza) - 2 buildings												AMC Theaters
(ground leased through 2062)
Rosslyn Plaza - 4 buildings	46.2%		80.4%		38.74	734,000	501,000	233,000			32,761	General Services Administration, Corporate Executive Board
Total Rosslyn / Ballston			91.3%		42.12	1,372,000	1,139,000	233,000			72,509
Reston:
Commerce Executive - 3 buildings	100.0%	`	86.6%		31.58	419,000	400,000	19,000	*		-	L-3 Communications, Allworld Language Consultants,
												BT North America
Rockville/Bethesda:
Democracy Plaza One	100.0%		89.4%		31.97	216,000	216,000	-			-	National Institutes of Health
(ground leased through 2084)
Tysons Corner:
Fairfax Square - 3 buildings	20.0%		87.6%		40.28	558,000	558,000	-			68,982	Dean & Company, Womble Carlyle
Pentagon City:
Fashion Centre Mall	7.5%		98.2%		42.33	822,000	822,000	-			410,000	Macy's, Nordstrom
Washington Tower	7.5%		100.0%		41.18	170,000	170,000	-			40,000	The Rand Corporation
Total Pentagon City			98.5%		42.13	992,000	992,000	-			450,000
Total Washington, DC office properties			82.0%	$	43.52	18,040,000	16,058,000	1,982,000		$	2,324,313
Vornado's Ownership Interest			80.5%	$	42.54	14,516,000	13,687,000	829,000		$	1,690,966

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WASHINGTON, DC SEGMENT
PROPERTY TABLE
			Weighted		Square Feet
			Average				Under Development
	%	%	Annual Rent		Total		or Not Available		Encumbrances
Property	Ownership	Occupancy	PSF (1)		Property	In Service	for Lease		(in thousands)		Major Tenants
WASHINGTON, DC (Continued):
Residential:
For rent residential:
Riverhouse - 3 buildings (1,670 units)	100.0%	96.9%	$	-	1,802,000	1,802,000	-		$	259,546
West End 25 (283 units)	100.0%	95.1%		-	273,000	273,000	-			101,671
220 20th Street (265 units)	100.0%	98.5%		-	269,000	269,000	-			72,346
Rosslyn Plaza - 2 buildings (196 units)	43.7%	94.9%		-	253,000	253,000	-			-
Total Residential		96.8%			2,597,000	2,597,000	-			433,563
Other:
Crystal City Hotel	100.0%	-		-	266,000	266,000	-			-
Met Park / Warehouses - 1 building	100.0%	100.0%		-	231,000	104,000	127,000	*		-
Other - 3 buildings	100.0%	100.0%		-	11,000	9,000	2,000	*		-
Total Other		100.0%			508,000	379,000	129,000			-
Total Washington, DC		84.4%	$	43.52	21,145,000	19,034,000	2,111,000		$	2,757,876
Vornado's Ownership Interest		83.3%	$	42.54	17,479,000	16,520,000	959,000		$	2,124,529
* We do not capitalize interest or real estate taxes on this space.
(1) Weighted Average Annual Rent PSF excludes ground rent, storage rent and garages.

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RETAIL PROPERTIES SEGMENT
PROPERTY TABLE
			Weighted		Square Feet
			Average			In Service		Under Development
	%	%	Annual Rent		Total	Owned by	Owned By	or Not Available		Encumbrances
Property	Ownership	Occupancy	PSF (1)		Property	Company	Tenant (2)	for Lease		(in thousands)			Major Tenants
RETAIL PROPERTIES:
STRIP SHOPPING CENTERS:
New Jersey:
Wayne Town Center, Wayne	100.0%	100.0%	$	39.29	663,000	29,000	287,000	347,000		$	-		JCPenney, Dick's Sporting Goods (lease not commenced),
(ground leased through 2064)													Costco (lease not commenced)
North Bergen (Tonnelle Avenue)	100.0%	98.9%		24.45	410,000	204,000	206,000	-			75,000		Wal-Mart, BJ's Wholesale Club
Totowa	100.0%	100.0%		19.28	271,000	177,000	94,000	-			24,581	(3)	The Home Depot, Bed Bath & Beyond, Marshalls
Bricktown	100.0%	94.7%		18.48	279,000	276,000	3,000	-			31,704	(3)	Kohl's , ShopRite, Marshalls
Union (Route 22 and Morris Avenue)	100.0%	99.4%		25.36	276,000	113,000	163,000	-			32,084	(3)	Lowe's, Toys "R" Us
Hackensack	100.0%	75.4%		23.44	275,000	269,000	6,000	-			40,242	(3)	The Home Depot
Bergen Town Center - East, Paramus	100.0%	93.6%		36.42	211,000	44,000	167,000	-			-		Lowe's, REI
East Hanover (240 Route 10 West)	100.0%	95.9%		18.65	267,000	261,000	6,000	-			28,279	(3)	The Home Depot, Dick's Sporting Goods, Marshalls
Cherry Hill	100.0%	96.7%		13.60	263,000	70,000	193,000	-			13,759	(3)	Wal-Mart, Toys "R" Us
Jersey City	100.0%	100.0%		21.79	236,000	66,000	170,000	-			20,121	(3)	Lowe's, P.C. Richard & Son
East Brunswick (325 - 333 Route 18 South)	100.0%	100.0%		16.67	232,000	222,000	10,000	-			24,689	(3)	Kohl's, Dick's Sporting Goods, P.C. Richard & Son,
													T.J. Maxx
Union (2445 Springfield Avenue)	100.0%	100.0%		17.85	232,000	232,000	-	-			28,279	(3)	The Home Depot
Middletown	100.0%	94.9%		14.75	231,000	179,000	52,000	-			17,239	(3)	Kohl's, Stop & Shop
Woodbridge	100.0%	84.1%		22.35	226,000	86,000	140,000	-			20,502	(3)	Wal-Mart
North Plainfield	100.0%	85.0%		17.75	212,000	60,000	152,000	-			-		Costco
(ground leased through 2060)
Marlton	100.0%	100.0%		13.94	213,000	209,000	4,000	-			17,130	(3)	Kohl's (4), ShopRite, PetSmart
Manalapan	100.0%	99.3%		16.58	208,000	206,000	2,000	-			20,883	(3)	Best Buy, Bed Bath & Beyond, Babies "R" Us
East Rutherford	100.0%	100.0%		34.34	197,000	42,000	155,000	-			13,487	(3)	Lowe's
East Brunswick (339-341 Route 18 South)	100.0%	100.0%		-	196,000	33,000	163,000	-			11,692	(3)	Lowe's, LA Fitness (lease not commenced)
Garfield	100.0%	100.0%		21.47	195,000	46,000	149,000	-			-		Wal-Mart, Marshalls
Bordentown	100.0%	80.4%		7.25	179,000	83,000	-	96,000	*		-		ShopRite
Morris Plains	100.0%	95.9%		20.71	177,000	176,000	1,000	-			21,209	(3)	Kohl's, ShopRite
Dover	100.0%	96.3%		12.02	173,000	167,000	6,000	-			13,052	(3)	ShopRite, T.J. Maxx
Delran	100.0%	7.2%		-	171,000	40,000	3,000	128,000	*		-
Lodi (Route 17 North)	100.0%	100.0%		11.92	171,000	171,000	-	-			11,257	(3)	National Wholesale Liquidators
Watchung	100.0%	96.6%		25.40	170,000	54,000	116,000	-			14,955	(3)	BJ's Wholesale Club
Lawnside	100.0%	100.0%		14.11	145,000	142,000	3,000	-			10,604	(3)	The Home Depot, PetSmart

- 43 -

 

RETAIL PROPERTIES SEGMENT
PROPERTY TABLE
			Weighted		Square Feet
			Average			In Service		Under Development
	%	%	Annual Rent		Total	Owned by	Owned By	or Not Available	Encumbrances
Property	Ownership	Occupancy	PSF (1)		Property	Company	Tenant (2)	for Lease	(in thousands)			Major Tenants
RETAIL PROPERTIES (Continued):
Hazlet	100.0%	100.0%	$	2.64	123,000	123,000	-	-	$	-		Stop & Shop
Kearny	100.0%	43.5%		16.11	104,000	91,000	13,000	-		-		Marshalls
Turnersville	100.0%	100.0%		6.40	96,000	89,000	7,000	-		-		Haynes Furniture
Lodi (Washington Street)	100.0%	94.1%		19.99	85,000	85,000	-	-		-		Blink Fitness, Aldi
Carlstadt (ground leased through 2050)	100.0%	95.2%		21.69	78,000	78,000	-	-		-		Stop & Shop
East Hanover (200 Route 10 West)	100.0%	53.8%		24.37	76,000	76,000	-	-		9,680	(3)
Paramus (ground leased through 2033)	100.0%	100.0%		42.23	63,000	63,000	-	-		-		24 Hour Fitness
North Bergen (Kennedy Boulevard)	100.0%	100.0%		26.76	62,000	6,000	56,000	-		5,058	(3)	Food Basics
South Plainfield (ground leased through 2039)	100.0%	85.9%		22.04	56,000	56,000	-	-		5,085	(3)	Staples
Englewood	100.0%	79.7%		25.13	41,000	41,000	-	-		11,715		New York Sports Club
Eatontown	100.0%	100.0%		28.09	30,000	30,000	-	-		-		Petco
East Hanover (280 Route 10 West)	100.0%	94.0%		32.00	26,000	26,000	-	-		4,514	(3)	REI
Montclair	100.0%	100.0%		23.34	18,000	18,000	-	-		2,610	(3)	Whole Foods Market
Total New Jersey					7,337,000	4,439,000	2,327,000	571,000		529,410
New York:
Poughkeepsie	100.0%	85.9%		8.95	517,000	517,000	-	-		-		Kmart, Burlington Coat Factory, ShopRite, Hobby Lobby,
												Christmas Tree Shops, Bob's Discount Furniture
Bronx (Bruckner Boulevard)	100.0%	91.3%		21.22	501,000	387,000	114,000	-		-		Kmart, Toys "R" Us, Key Food
Buffalo (Amherst)	100.0%	100.0%		8.94	311,000	242,000	69,000	-		-		BJ's Wholesale Club, T.J. Maxx, Toys "R" Us,
												LA Fitness (lease not commenced)
Huntington	100.0%	97.9%		14.80	209,000	209,000	-	-		16,532	(3)	Kmart, Marshalls, Old Navy, Petco
Rochester	100.0%	100.0%		-	205,000	-	205,000	-		4,351	(3)	Wal-Mart
Mt. Kisco	100.0%	100.0%		22.20	189,000	72,000	117,000	-		28,089		Target, A&P
Freeport (437 East Sunrise Highway)	100.0%	100.0%		18.61	173,000	173,000	-	-		21,209	(3)	The Home Depot, Staples
Rochester (Henrietta)	100.0%	96.2%		3.81	165,000	158,000	7,000	-		-		Kohl's, Ollie's Bargain Outlet
(ground leased through 2056)
Staten Island	100.0%	92.7%		22.71	165,000	165,000	-	-		17,000		Western Beef
Albany (Menands)	100.0%	74.0%		9.00	140,000	140,000	-	-		-		Bank of America
New Hyde Park (ground and building	100.0%	100.0%		18.73	101,000	101,000	-	-		-		Stop & Shop
leased through 2029)
Inwood	100.0%	76.9%		18.90	100,000	100,000	-	-		-		Stop & Shop

- 44 -

 

RETAIL PROPERTIES SEGMENT
PROPERTY TABLE
			Weighted		Square Feet
			Average				In Service			Under Development
	%	%	Annual Rent		Total		Owned by	Owned By		or Not Available		Encumbrances
Property	Ownership	Occupancy	PSF (1)		Property		Company	Tenant (2)		for Lease		(in thousands)			Major Tenants
RETAIL PROPERTIES (Continued):
West Babylon	100.0%	82.1%	$	17.39	79,000		79,000	-		-		$	-		Best Market
Bronx (1750-1780 Gun Hill Road)	100.0%	90.7%		32.22	77,000		77,000	-		-			-		Aldi, Planet Fitness, T.G.I. Friday's
Queens	100.0%	100.0%		37.31	56,000		56,000	-		-			-		New York Sports Club, Devry
Commack	100.0%	100.0%		21.45	47,000		47,000	-		-			-		PetSmart
(ground and building leased through 2021)
Dewitt	100.0%	100.0%		20.46	46,000		46,000	-		-			-		Best Buy
(ground leased through 2041)
Freeport (240 West Sunrise Highway)	100.0%	100.0%		20.28	44,000		44,000	-		-			-		Bob's Discount Furniture
(ground and building leased through 2040)
Oceanside	100.0%	100.0%		27.83	16,000		16,000	-		-			-		Party City
Total New York					3,141,000		2,629,000	512,000		-			87,181
Pennsylvania:
Allentown	100.0%	90.3%		15.23	627,000	(5)	270,000	357,000	(5)	-			29,756	(3)	Wal-Mart (5), ShopRite, Burlington Coat Factory,
															T.J. Maxx, Dick's Sporting Goods
Wilkes-Barre	100.0%	83.2%		13.55	329,000	(5)	205,000	125,000	(5)	-			19,815		Target (5), Babies "R" Us, Ross Dress for Less
Lancaster	100.0%	82.1%		15.33	228,000		58,000	170,000		-			5,357	(3)	Lowe's
Bensalem	100.0%	98.9%		11.50	185,000		177,000	8,000		-			14,765	(3)	Kohl's, Ross Dress for Less, Staples
Broomall	100.0%	100.0%		11.09	169,000		147,000	22,000		-			10,604	(3)	Giant Food (4), A.C. Moore, PetSmart
Bethlehem	100.0%	95.3%		7.30	167,000		164,000	3,000		-			5,547	(3)	Giant Food, Petco
York	100.0%	100.0%		9.35	111,000		111,000	-		-			5,166	(3)	Ashley Furniture, Aldi
Glenolden	100.0%	100.0%		25.84	102,000		10,000	92,000		-			6,798	(3)	Wal-Mart
Wilkes-Barre	100.0%	100.0%		6.53	81,000		41,000	-		40,000	*		-		Ollie's Bargain Outlet
(ground and building leased through 2014)
Wyomissing	100.0%	93.2%		15.56	76,000		76,000	-		-			-		LA Fitness, PetSmart
(ground and building leased through 2065)
Springfield	100.0%	100.0%		20.90	41,000		41,000	-		-			-		PetSmart
(ground and building leased through 2025)
Total Pennsylvania					2,116,000		1,299,000	777,000		40,000			97,797

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RETAIL PROPERTIES SEGMENT
PROPERTY TABLE
			Weighted		Square Feet
			Average			In Service		Under Development
	%	%	Annual Rent		Total	Owned by	Owned By	or Not Available	Encumbrances
Property	Ownership	Occupancy	PSF (1)		Property	Company	Tenant (2)	for Lease	(in thousands)			Major Tenants
RETAIL PROPERTIES (Continued):
California:
Colton (1904 North Rancho Avenue)	100.0%	100.0%	$	4.44	73,000	73,000	-	-	$	-		Stater Brothers
San Francisco (2675 Geary Street)	100.0%	100.0%		50.34	55,000	55,000	-	-		-		Best Buy
(ground and building leased through 2043)
Signal Hill	100.0%	100.0%		24.08	45,000	45,000	-	-		-		Best Buy
Vallejo	100.0%	100.0%		17.51	45,000	45,000	-	-		-		Best Buy
(ground leased through 2043)
Riverside (5571 Mission Boulevard)	100.0%	100.0%		4.97	39,000	39,000	-	-		-		Stater Brothers
Walnut Creek (1149 South Main Street)	100.0%	100.0%		45.11	29,000	29,000	-	-		-		Barnes & Noble
Walnut Creek (Mt. Diablo)	95.0%	100.0%		70.00	7,000	7,000	-	-		-		Anthropologie
Total California					293,000	293,000	-	-		-
Massachusetts:
Chicopee	100.0%	100.0%		-	224,000	-	224,000	-		8,239	(3)	Wal-Mart
Springfield	100.0%	97.8%		16.39	182,000	33,000	149,000	-		5,683	(3)	Wal-Mart
Milford	100.0%	100.0%		8.01	83,000	83,000	-	-		-		Kohl's
(ground and building leased through 2019)
Cambridge	100.0%	100.0%		21.83	48,000	48,000	-	-		-		PetSmart
(ground and building leased through 2033)
Total Massachusetts					537,000	164,000	373,000	-		13,922
Maryland:
Baltimore (Towson)	100.0%	100.0%		16.28	155,000	155,000	-	-		15,499	(3)	Shoppers Food Warehouse, h.h.gregg, Staples,
												Home Goods, Golf Galaxy
Annapolis	100.0%	100.0%		8.99	128,000	128,000	-	-		-		The Home Depot
(ground and building leased through 2042)
Glen Burnie	100.0%	90.5%		11.67	121,000	65,000	56,000	-		-		Gavigan's Home Furnishings
Rockville	100.0%	100.0%		24.06	94,000	94,000	-	-		-		Regal Cinemas
Wheaton	100.0%	100.0%		14.94	66,000	66,000	-	-		-		Best Buy
(ground leased through 2060)
Total Maryland					564,000	508,000	56,000	-		15,499

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RETAIL PROPERTIES SEGMENT
PROPERTY TABLE
			Weighted		Square Feet
			Average			In Service		Under Development
	%	%	Annual Rent		Total	Owned by	Owned By	or Not Available	Encumbrances
Property	Ownership	Occupancy	PSF (1)		Property	Company	Tenant (2)	for Lease	(in thousands)			Major Tenants
RETAIL PROPERTIES (Continued):
Connecticut:
Newington	100.0%	100.0%	$	18.61	188,000	29,000	159,000	-	$	11,148	(3)	Wal-Mart, Staples
Waterbury	100.0%	97.6%		15.19	148,000	143,000	5,000	-		13,867	(3)	ShopRite
Total Connecticut					336,000	172,000	164,000	-		25,015
Michigan:
Roseville	100.0%	100.0%		5.51	119,000	119,000	-	-		-		JCPenney
Battle Creek	100.0%	-		-	47,000	47,000	-	-		-
Midland (ground leased through 2043)	100.0%	83.6%		9.21	31,000	31,000	-	-		-		PetSmart
Total Michigan					197,000	197,000	-	-		-
Virginia:
Norfolk	100.0%	100.0%		6.44	114,000	114,000	-	-		-		BJ's Wholesale Club
(ground and building leased through 2069)
Tyson's Corner	100.0%	100.0%		39.13	38,000	38,000	-	-		-		Best Buy
(ground and building leased through 2035)
Total Virginia					152,000	152,000	-	-		-
Illinois:
Lansing	100.0%	100.0%		10.00	47,000	47,000	-	-		-		Forman Mills
Arlington Heights	100.0%	100.0%		9.00	46,000	46,000	-	-		-		Value City Furniture
(ground and building leased through 2043)
Chicago	100.0%	100.0%		12.03	41,000	41,000	-	-		-		Best Buy
(ground and building leased through 2051)
Total Illinois					134,000	134,000	-	-		-
Texas:
San Antonio	100.0%	100.0%		10.63	43,000	43,000	-	-		-		Best Buy
(ground and building leased through 2041)
Ohio:
Springdale	100.0%	-		-	47,000	47,000	-	-		-
(ground and building leased through 2046)
Tennessee:
Antioch	100.0%	100.0%		7.66	45,000	45,000	-	-		-		Best Buy

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RETAIL PROPERTIES SEGMENT
PROPERTY TABLE
			Weighted		Square Feet
			Average			In Service		Under Development
	%	%	Annual Rent		Total	Owned by	Owned By	or Not Available	Encumbrances
Property	Ownership	Occupancy	PSF (1)		Property	Company	Tenant (2)	for Lease	(in thousands)		Major Tenants
RETAIL PROPERTIES (Continued):
South Carolina:
Charleston	100.0%	100.0%	$	14.19	45,000	45,000	-	-	$	-	Best Buy
(ground leased through 2063)
Wisconsin:
Fond Du Lac	100.0%	100.0%		7.83	43,000	43,000	-	-		-	PetSmart
(ground leased through 2073)
New Hampshire:
Salem	100.0%	100.0%		-	37,000	-	37,000	-		-	Babies "R" Us
(ground leased through 2102)
Kentucky:
Owensboro	100.0%	100.0%		7.66	32,000	32,000	-	-		-	Best Buy
(ground and building leased through 2046)
Iowa:
Dubuque	100.0%	100.0%		9.90	31,000	31,000	-	-		-	PetSmart
(ground leased through 2043)
Total Strip Shopping Centers		93.9%	$	16.36	15,130,000	10,273,000	4,246,000	611,000	$	768,824
Vornado's Ownership Interest		93.9%	$	16.36	14,751,000	10,273,000	3,867,000	611,000	$	768,824

REGIONAL MALLS:
Monmouth Mall, Eatontown, NJ	50.0%	93.9%	$	35.39	(6)	1,463,000	(5)	851,000	612,000	(5)	-	$	168,828	Macy's (5), JCPenney (5), Lord & Taylor, Boscov's,
														Loews Theatre, Barnes & Noble, Forever 21
Springfield Town Center, Springfield, VA	100.0%	100.0%		16.24	(6)	1,374,000	(5)	294,000	390,000	(5)	690,000		-	Macy's, JCPenney (5), Target (5)
														Dick's Sporting Goods (lease not commenced),
														Regal Cinema (lease not commenced),
														LA Fitness (lease not commenced),
														Hennes & Mauritz (lease not commenced),
														Forever 21 (lease not commenced)
Bergen Town Center - West, Paramus, NJ	100.0%	99.2%		42.56	(6)	951,000		920,000	31,000		-		300,000	Target, Century 21, Whole Foods Market, Marshalls,
														Nordstrom Rack, Saks Off 5th, Home Goods, Old Navy,
														Hennes & Mauritz, Neiman Marcus Last Call Studio,
														Bloomingdale's Outlet, Nike Factory Store, Blink Fitness
Montehiedra, Puerto Rico	100.0%	91.0%		37.57	(6)	542,000		542,000	-		-		120,000	The Home Depot, Kmart, Marshalls, Caribbean Theatres,
														Tiendas Capri, Nike Factory Store
Las Catalinas, Puerto Rico	100.0%	92.6%		58.03	(6)	494,000	(5)	355,000	139,000	(5)	-		-	Kmart, Sears (5)
Total Regional Malls		95.4%	$	41.21		4,824,000		2,962,000	1,172,000		690,000	$	588,828
Vornado's Ownership Interest		95.7%	$	42.59		3,336,000		2,537,000	109,000		690,000	$	504,414

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RETAIL PROPERTIES SEGMENT
PROPERTY TABLE
			Weighted	Square Feet
			Average		In Service		Under Development
	%	%	Annual Rent	Total	Owned by	Owned By	or Not Available	Encumbrances
Property	Ownership	Occupancy	PSF (1)	Property	Company	Tenant (2)	for Lease	(in thousands)		Major Tenants
Total Retail Properties		94.2%		19,954,000	13,235,000	5,418,000	1,301,000	$	1,357,652
Vornado's Ownership Interest		94.2%		18,087,000	12,810,000	3,976,000	1,301,000	$	1,273,238
* We do not capitalize interest or real estate taxes on this space.
(1) Weighted Average Annual Rent PSF excludes ground rent, storage rent and garages.
(2) Owned by tenant on land leased from the company.
(3) These encumbrances are cross-collateralized under a blanket mortgage in the amount of $617,206 as of March 31, 2014.
(4) The lease for these former Bradlees locations is guaranteed by Stop & Shop.
(5) Includes square footage of anchors who own the land and building.
(6) Weighted Average Annual Rent PSF shown is for mall tenants only.

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OTHER
PROPERTY TABLE
						Weighted		Square Feet
						Average				Under Development
		%		%		Annual Rent		Total		or Not Available	Encumbrances
Property		Ownership		Occupancy		PSF (1)		Property	In Service	for Lease	(in thousands)		Major Tenants
555 CALIFORNIA STREET:
555 California Street	70.0%		96.2%		$		58.48	1,503,000	1,503,000	-	$	600,000	Bank of America, Dodge & Cox, Goldman Sachs & Co.,
													Jones Day, Kirkland & Ellis LLP, Morgan Stanley & Co. Inc.,
													McKinsey & Company Inc., UBS Financial Services,
													KKR Finanacial, Microsoft Corporation (lease not commenced)
315 Montgomery Street	70.0%		94.1%				43.39	228,000	228,000	-		-	Bank of America, Regus
345 Montgomery Street	70.0%		100.0%				96.90	64,000	64,000	-		-	Bank of America
Total 555 California Street			96.1%		$		58.14	1,795,000	1,795,000	-	$	600,000
Vornado's Ownership Interest			96.1%		$		58.14	1,257,000	1,257,000	-	$	420,000

MERCHANDISE MART:
Illinois:
Merchandise Mart, Chicago		100.0%	95.6%	$	34.56	3,559,000	3,559,000	-	$	550,000	American Intercontinental University (AIU), Steelcase,
											Baker, Knapp & Tubbs, Motorola Mobility (owned by Google),
											CCC Information Services, Ogilvy Group (WPP),
											Chicago Teachers Union, Publicis Groupe,
											Office of the Special Deputy Receiver, Holly Hunt Ltd.,
											Razorfish, TNDP, Merchandise Mart Headquarters,
											Chicago School of Professional Psychology
Other		50.0%	100.0%		30.45	19,000	19,000	-		23,161
	Total Illinois		95.6%		34.53	3,578,000	3,578,000	-		573,161
Total Merchandise Mart			95.6%	$	34.53	3,578,000	3,578,000	-	$	573,161
Vornado's Ownership Interest			95.6%	$	34.53	3,569,000	3,569,000	-	$	561,580

WAREHOUSES:
NEW JERSEY
East Hanover - 5 Buildings	100.0%	45.6%	$	4.35	942,000	942,000	-	$	-	Foremost Groups Inc., Fidelity Paper & Supply Inc.,
										Consolidated Simon Distributors Inc., Givaudan Flavors Corp.,
										Meyer Distributing Inc.
Total Warehouses		45.6%	$	4.35	942,000	942,000	-	$	-
Vornado's Ownership Interest		45.6%	$	4.35	942,000	942,000	-	$	-
(1) Weighted Average Annual Rent PSF excludes ground rent, storage rent and garages.

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REAL ESTATE FUND
PROPERTY TABLE
			Weighted		Square Feet
			Average				Under Development
	Fund	%	Annual Rent		Total		or Not Available	Encumbrances
Property	Ownership %	Occupancy	PSF (1)		Property	In Service	for Lease	(in thousands)		Major Tenants
VORNADO CAPITAL PARTNERS
REAL ESTATE FUND:
New York, NY:
One Park Avenue										Coty Inc., New York University,
- Office	64.7%	96.4%	$	44.85	864,000	864,000	-			Public Service Mutual Insurance
- Retail	64.7%	100.0%		64.02	79,000	79,000	-			Bank of Baroda, Citibank, Equinox,
										Men's Wearhouse (lease not commenced)
	64.7%	96.7%		46.45	943,000	943,000	-	$	250,000
Lucida, 86th Street and Lexington Avenue
(ground leased through 2082)										Barnes & Noble, Hennes & Mauritz,
- Retail	100.0%	100.0%		133.90	95,000	95,000	-			Sephora, Bank of America
- Residential	100.0%	100.0%		-	51,000	51,000	-
	100.0%	100.0%		-	146,000	146,000	-		100,000
11 East 68th Street Retail	100.0%	100.0%		737.85	9,000	9,000	-		-	Belstaff, Kent & Curwen
Crowne Plaza Times Square
- Hotel (795 Keys)
- Retail	38.2%	100.0%		345.57	14,000	14,000	-			Hershey
- Office	38.2%	100.0%		37.50	220,000	220,000	-			American Management Association
	38.2%	100.0%		55.93	234,000	234,000	-		252,000
501 Broadway	100.0%	100.0%		232.43	9,000	9,000	-		20,000	Capital One
Washington, DC:
										Washington Sports, Dean & Deluca, Anthropologie,
										Pinstripes, DSW, Hennes & Mauritz,
Georgetown Park Retail Shopping Center	50.0%	100.0%		37.30	313,000	258,000	55,000		95,899	J. Crew, TJ Maxx, Forever 21 (lease not commenced)
Santa Monica, CA:
										Premier Office Centers LLC, Diversified Mercury Comm,
520 Broadway	100.0%	81.6%		50.42	112,000	112,000	-		30,000	Microsoft Corporation
Culver City, CA:
										Meredith Corp., West Publishing Corp., Symantec Corp.,
800 Corporate Pointe	100.0%	57.0%		33.62	243,000	243,000	-		59,922	Syska Hennessy Group, X Prize Foundation
Miami, FL:
1100 Lincoln Road	100.0%	99.6%		104.17	127,000	127,000	-		66,000	Regal Cinema, Anthropologie, Banana Republic
Total Real Estate Fund	70.9%	90.1%			2,136,000	2,081,000	55,000	$	873,821
Vornado's Ownership Interest	17.7%	90.1%			376,000	369,000	7,000	$	145,471
(1) Weighted Average Annual Rent PSF excludes ground rent, storage rent and garages.

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