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

EXHIBIT 99.2

SUPPLEMENTAL OPERATING

AND FINANCIAL DATA

For the Quarter Ended June 30, 2014

 

 

INDEX
	Page
Investor Information	2
2014 Business Developments	3 - 4
Common Shares Data	5
Financial Highlights	6
Funds From Operations	7 - 8
Funds Available for Distribution	9
Net Income / EBITDA (Consolidated and by Segment)	10 - 15
EBITDA by Segment and Region	16
Consolidated Balance Sheets	17
Capital Structure	18
Debt Analysis	19 - 21
Unconsolidated Joint Ventures	22 - 24
Square Footage	25
Top 30 Tenants	26
Lease Expirations	27 - 29
Leasing Activity	30 - 31
Occupancy, Same Store EBITDA and Residential Statistics	32
Capital Expenditures	33 - 37
Development Costs and Construction in Progress	38
Property Table	39 - 56
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		Brad K. Burke	Vance H. Edelson
Bank of America / Merrill Lynch		Goldman Sachs	Morgan Stanley
646-855-5808 / 646-855-1829		917-343-2082	212-761-0078
Ross Smotrich / Charles Croson		Michael Knott / John Bejjani	Alexander Goldfarb / Andrew Schaffer
Barclays Capital		Green Street Advisors, Inc.	Sandler O'Neill & Partners
212-526-2306 / 212-526-7146		949-640-8780 / 949-640-8780	212-466-7937 / 212-466-8062
Michael Bilerman / Emmanuel Korchman		Steve Sakwa / Gabriel Hilmoe	John W. Guinee / Erin T. Aslakson
Citigroup Global Markets		ISI Group	Stifel Nicolaus & Company
212-816-1383 / 212-816-1382		212-446-9462 / 212-446-9459	443-224-1307 / 443-224-1350
Vincent Chao / Venkat Kommineni		Anthony Paolone	Ross T. Nussbaum / Nick Yulico
Deutsche Bank		JP Morgan	UBS
212-250-6799 / 212-250-6090		212-622-6682	212-713-2484 / 212-713-3402
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 80 strip centers, four malls and a warehouse park adjacent to our East Hanover strip center, into a new publicly traded REIT (“SpinCo”).  The spin-off is expected to be effectuated through a pro rata 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.  On June 26, 2014, SpinCo filed its initial registration statement on Form 10 with the Securities and Exchange Commission (“SEC”).  We expect the spin-off to be completed by the end of 2014, subject to certain conditions, including the SEC declaring SpinCo’s registration statement effective, filing and approval of SpinCo’s listing application with the NYSE, 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, 22 small retail assets which do not fit SpinCo’s strategy, and the Springfield Town Center, which is under contract for disposition.

Acquisitions

Since January 1, 2014, we have completed the following acquisitions:

·On June 26, 2014, we invested an additional $22,700,000 to increase our ownership in One Park Avenue to 55.0% from 46.5% through a joint venture with an institutional investor, who increased his ownership interest to 45.0%.  The transaction was based on a property value of $560,000,000. The property is encumbered by a $250,000,000 interest-only mortgage loan that bears interest at 4.995% and matures in March 2016.

·On July 9, 2014, we entered into an agreement, in partnership with Crown Acquisitions (“Crown”), to acquire the retail condominium of the St. Regis Hotel and the adjacent retail townhouse, for approximately $700,000,000. The property has 100 feet of frontage on Fifth Avenue on the Southeast corner of 55th Street.  We will own between 67% and 80% of the venture, with Crown owning the balance. The final ownership percentages will be based on the amount of debt financing put on the property and Crown’s short-term option to invest additional capital. The purchase is expected to close in the fourth quarter of 2014, subject to customary closing conditions.

·On July 23, 2014, a joint venture in which we are a 50% partner entered into a 99-year ground lease for 61 Ninth Avenue located on the Southwest corner of Ninth Avenue and 15th Street in Manhattan.  The venture’s current plans are to construct an office and retail building of approximately 130,000 square feet.  Total development costs are currently estimated to be approximately $125,000,000.

·On August 1, 2014, we acquired the land under our 715 Lexington Avenue retail property located on the Southeast corner of 58th Street and Lexington Avenue in Manhattan, for $63,000,000.

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2014 BUSINESS DEVELOPMENTS

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 July 8, 2014, we completed the sale of Beverly Connection, a 335,000 square foot power shopping center in Los Angeles, California, for $260,000,000, of which $239,000,000 was cash and $21,000,000 was 10-year mezzanine seller financing. The sale resulted in a net gain of approximately $44,000,000, which will be recognized in the third quarter of 2014.

·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 and the closing will be no later than March 31, 2015.

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 June 30, 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 defeasing the existing 5.64%, $193,000,000 mortgage, defeasance cost and other closing costs.

·On June 16, 2014, we completed a green bond public offering of $450,000,000 2.50% senior unsecured notes due June 30, 2019.  The notes were sold at 99.619% of their face amount to yield 2.581%.

·On July 16, 2014, we completed a $130,000,000 financing of Las Catalinas, a 494,000 square foot mall located in Caguas, Puerto Rico, in the San Juan area. The 10-year fixed rate loan bears interest at 4.43% and amortizes based on a 30-year schedule beginning in year six.  

Vornado Capital Partners Real Estate Fund (the “Fund”)

·On June 26, 2014, the Fund sold its 64.7% interest in One Park Avenue to a newly formed joint venture that we and an institutional investor own 55% and 45%, respectively.  This transaction was based on a property value of $560,000,000.  From the inception of this investment through its disposition, the Fund realized a $75,069,000 net gain.

·On June 24, 2014, the Fund and its 50% joint venture partner entered into an agreement to sell Georgetown Park, a 305,000 square foot retail property, for $272,500,000.

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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 performance and dividends for VNO common shares (based on NYSE prices):
				Second Quarter 2014		First Quarter 2014		Fourth Quarter 2013		Third Quarter 2013
High Price				$	109.01	$	100.02	$	91.91	$	89.35
Low Price				$	96.93	$	87.82	$	82.73	$	79.56
Closing Price - end of quarter				$	106.73	$	98.56	$	88.79	$	84.06
Annualized Dividend per share				$	2.92	$	2.92	$	2.92	$	2.92
Annualized Dividend Yield - on Closing Price					2.7%		3.0%		3.3%		3.5%
Outstanding shares, Class A units and convertible preferred units
	as converted, excluding stock options (in thousands)				199,652		199,583		199,245		199,051
Closing market value of outstanding shares, Class A units and
	convertible preferred units as converted, excluding stock options			$	21.3 Billion	$	19.7 Billion	$	17.7 Billion	$	16.7 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
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						Six Months Ended
				June 30,				March 31,		June 30,
				2014		2013		2014		2014		2013
	Total revenues			$	666,606	$	671,216	$	660,618	$	1,327,224	$	1,389,929
	Net income attributable to common shareholders			$	76,642	$	145,926	$	62,349	$	138,991	$	377,916
		Per common share:
			Basic	$	0.41	$	0.78	$	0.33	$	0.74	$	2.02
			Diluted	$	0.41	$	0.78	$	0.33	$	0.74	$	2.01
	FFO as adjusted for comparability			$	271,574	$	239,304	$	226,882	$	498,629	$	450,917
		Per diluted share		$	1.44	$	1.27	$	1.20	$	2.65	$	2.40
	FFO			$	216,547	$	235,348	$	247,079	$	463,626	$	437,168
	FFO - Operating Partnership Basis ("OP Basis")			$	229,933	$	249,900	$	262,431	$	492,352	$	464,228
		Per diluted share		$	1.15	$	1.25	$	1.31	$	2.46	$	2.33
	FAD			$	195,667	$	164,560	$	151,619	$	347,677	$	310,441
		Per diluted share		$	1.04	$	0.88	$	0.81	$	1.84	$	1.65
	Dividends per common share			$	0.73	$	0.73	$	0.73	$	1.46	$	1.46
	FFO payout ratio (based on FFO as adjusted for comparability)				50.7%		57.5%		60.8%		55.1%		60.8%
	FAD payout ratio				70.2%		83.0%		90.1%		79.3%		88.5%
	Weighted average shares used in determining FFO per diluted share - REIT basis				188,659		187,720		188,287		188,475		187,627
	Convertible units:
		Class A			10,705		10,639		10,611		10,658		10,624
		D-13			453		557		498		478		565
		G1-G4			80		105		87		81		106
		Equity awards - unit equivalents			424		306		503		461		319
	Weighted average shares used in determining FFO per diluted share - OP Basis				200,321		199,327		199,986		200,153		199,241

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RECONCILIATION OF NET INCOME TO FFO (1)
(unaudited and in thousands, except per share amounts)
				Three Months Ended						Six Months Ended
				June 30,				March 31,		June 30,
				2014		2013		2014		2014		2013
Reconciliation of our net income to FFO:
	Net income attributable to Vornado			$	97,008	$	158,194	$	82,717	$	179,725	$	421,116
	Depreciation and amortization of real property				121,402		126,728		142,569		263,971		259,241
	Net gains on sale of real estate				-		(65,665)		-		-		(267,994)
	Real estate impairment losses				-		2,493		20,842		20,842		4,007
	Proportionate share of adjustments to equity in net income of
		Toys, to arrive at FFO:
			Depreciation and amortization of real property		8,814		17,480		11,415		20,229		36,805
			Real estate impairment losses		-		620		-		-		4,270
			Income tax effect of above adjustments		(3,085)		(6,326)		(3,995)		(7,080)		(14,376)
	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		21,312		19,486		25,271		46,583		41,316
			Net gains on sale of real estate		-		-		-		-		(465)
	Noncontrolling interests' share of above adjustments				(8,561)		(5,421)		(11,399)		(19,960)		(3,607)
	FFO				236,890		247,589		267,420		504,310		480,313
	Preferred share dividends				(20,366)		(20,368)		(20,368)		(40,734)		(42,070)
	Preferred unit and share redemptions				-		8,100		-		-		(1,130)
	FFO attributable to common shareholders				216,524		235,321		247,052		463,576		437,113
	Convertible preferred share dividends				23		27		27		50		55
	FFO attributable to common shareholders plus assumed conversions				216,547		235,348		247,079		463,626		437,168
	Add back of income allocated to noncontrolling interests of the
		Operating Partnership			13,386		14,552		15,352		28,726		27,060
	FFO - OP Basis (1)			$	229,933	$	249,900	$	262,431	$	492,352	$	464,228
	FFO per diluted share (1)			$	1.15	$	1.25	$	1.31	$	2.46	$	2.33
(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 non-GAAP financial measures used by management, investors and analysts to facilitate meaningful comparisons of operating performance between periods and among our peers because it 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						Six Months Ended
				June 30,				March 31,		June 30,
				2014		2013		2014		2014		2013
FFO attributable to common shareholders plus assumed
	conversions		(A)	$	216,547	$	235,348	$	247,079	$	463,626	$	437,168
Per diluted share				$	1.15	$	1.25	$	1.31	$	2.46	$	2.33
Items that affect comparability income (expense):
	Toys (Negative FFO) FFO (including impairment losses of $75,196,and $78,542
		in the six months ended June 30, 2014 and 2013, respectively)			(51,862)		(25,088)		9,267		(42,595)		(8,404)
	Defeasance cost in connection with the refinancing of 909 Third Avenue				(5,589)		-		-		(5,589)		-
	Acquisition and transaction related costs				(4,083)		(3,350)		(1,784)		(5,867)		(3,951)
	FFO from discontinued operations, including LNR in the six months ended
		June 30, 2013			2,200		7,556		4,139		6,339		35,507
	Net gain on sale of residential condominiums, and a land parcel in
		the six months ended June 30, 2014			905		1,005		9,635		10,540		1,005
	Income from the mark-to-market and losses from impairment and disposition
		of investment in J.C. Penney			-		9,065		-		-		(89,762)
	Preferred unit and share redemptions				-		8,100		-		-		(1,130)
	The Mart reduction-in-force and severance costs				-		(1,542)		-		-		(4,154)
	Stop & Shop litigation settlement income				-		-		-		-		59,599
	Other, net				-		53		-		-		(3,310)
					(58,429)		(4,201)		21,257		(37,172)		(14,600)
Noncontrolling interests' share of above adjustments					3,402		245		(1,060)		2,169		851
Items that affect comparability, net			(B)	$	(55,027)	$	(3,956)	$	20,197	$	(35,003)	$	(13,749)
Per diluted share				$	(0.29)	$	(0.02)	$	0.11	$	(0.19)	$	(0.07)
FFO attributable to common shareholders plus assumed conversions,
	as adjusted for comparability		(A-B)	$	271,574	$	239,304	$	226,882	$	498,629	$	450,917
Per diluted share				$	1.44	$	1.27	$	1.20	$	2.65	$	2.40

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RECONCILIATION OF FFO TO FAD (1)
(unaudited and in thousands, except per share amounts)
				Three Months Ended						Six Months Ended
				June 30,				March 31,		June 30,
				2014		2013		2014		2014		2013
FFO attributable to common shareholders plus assumed conversions			(A)	$	216,547	$	235,348	$	247,079	$	463,626	$	437,168
Adjustments to arrive at FAD:
	Items that affect comparability per page 8, excluding FFO attributable to
		discontinued operations			(60,629)		(11,757)		17,118		(43,511)		(50,107)
	Recurring tenant improvements, leasing commissions and other capital expenditures				55,921		61,301		72,500		128,421		136,613
	Straight-line rentals				20,105		13,401		13,058		33,163		31,102
	Carried interest and our share of net unrealized gains from Real Estate Fund				17,372		18,468		4,873		22,245		23,484
	Amortization of acquired below-market leases, net				9,624		9,898		10,824		20,448		24,454
	Stock-based compensation expense				(9,051)		(9,129)		(11,024)		(20,075)		(16,595)
	Amortization of debt issuance costs				(8,127)		(4,753)		(4,812)		(12,939)		(10,132)
	Non real estate depreciation				(3,044)		(2,264)		(1,575)		(4,619)		(4,248)
	Noncontrolling interests' share of above adjustments				(1,291)		(4,377)		(5,502)		(7,184)		(7,844)
			(B)		20,880		70,788		95,460		115,949		126,727
FAD(1)			(A-B)	$	195,667	$	164,560	$	151,619	$	347,677	$	310,441
FAD per diluted share				$	1.04	$	0.88	$	0.81	$	1.84	$	1.65
FAD payout ratio(2)					70.2%		83.0%		90.1%		79.3%		88.5%
(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.

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CONSOLIDATED NET INCOME / EBITDA (1)
(unaudited and in thousands)
		Three Months Ended
		June 30,						March 31,
		2014		2013		Inc (Dec)		2014
Property rentals		$	509,539	$	509,673	$	(134)	$	503,360
Straight-line rent adjustments			20,105		13,401		6,704		13,058
Amortization of acquired below-market leases, net			10,480		11,000		(520)		11,682
Total rentals			540,124		534,074		6,050		528,100
Tenant expense reimbursements			76,202		72,291		3,911		86,590
Cleveland Medical Mart development project			-		16,990		(16,990)		-
Fee and other income:
	BMS cleaning fees		22,195		16,509		5,686		18,956
	Signage revenue		8,873		8,347		526		9,318
	Management and leasing fees		6,151		6,431		(280)		6,214
	Lease termination fees		4,545		7,041		(2,496)		3,793
	Other income		8,516		9,533		(1,017)		7,647
Total revenues			666,606		671,216		(4,610)		660,618
Operating expenses			261,453		259,168		2,285		273,391
Depreciation and amortization			129,025		133,180		(4,155)		147,651
General and administrative			44,568		50,305		(5,737)		52,158
Cleveland Medical Mart development project			-		15,151		(15,151)		-
Impairment losses, acquisition and transaction related costs			4,083		3,350		733		21,784
Total expenses			439,129		461,154		(22,025)		494,984
Operating income			227,477		210,062		17,415		165,634
(Loss) income applicable to Toys			(57,591)		(36,861)		(20,730)		1,847
Income from partially owned entities			3,849		1,472		2,377		132
Income from Real Estate Fund			100,110		34,470		65,640		18,148
Interest and other investment income, net			9,435		26,415		(16,980)		11,893
Interest and debt expense			(117,051)		(120,657)		3,606		(109,442)
Net gain on disposition of wholly owned and partially owned assets			905		1,005		(100)		9,635
Income before income taxes			167,134		115,906		51,228		97,847
Income tax expense			(3,599)		(2,877)		(722)		(1,582)
Income from continuing operations			163,535		113,029		50,506		96,265
Income from discontinued operations			2,152		69,292		(67,140)		1,891
Net income			165,687		182,321		(16,634)		98,156
Less net income attributable to noncontrolling interests in:
	Consolidated subsidiaries		(63,975)		(14,930)		(49,045)		(11,579)
	Operating Partnership		(4,691)		(8,849)		4,158		(3,848)
	Preferred unit distributions of the Operating Partnership		(13)		(348)		335		(12)
Net income attributable to Vornado			97,008		158,194		(61,186)		82,717
Interest and debt expense			179,520		179,461		59		170,952
Depreciation and amortization			173,443		182,131		(8,688)		196,339
Income tax (benefit) expense			(574)		(22,366)		21,792		19,831
EBITDA		$	449,397	$	497,420	$	(48,023)	$	469,839
Capitalized leasing and development payroll		$	5,362	$	3,312	$	2,050	$	4,486
Capitalized interest		$	16,560	$	9,232	$	7,328	$	13,622
(1) EBITDA represents "Earnings Before Interest, Taxes, Depreciation and Amortization." Management considers EBITDA a supplemental non-GAAP financial 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.

- 10 -

 

CONSOLIDATED NET INCOME / EBITDA
(unaudited and in thousands)
		Six Months Ended June 30,
		2014		2013		Inc (Dec)
Property rentals		$	1,012,899	$	1,009,588	$	3,311
Straight-line rent adjustments			33,163		31,102		2,061
Amortization of acquired below-market leases, net			22,162		27,177		(5,015)
Total rentals			1,068,224		1,067,867		357
Tenant expense reimbursements			162,792		148,255		14,537
Cleveland Medical Mart development project			-		29,133		(29,133)
Fee and other income:
	BMS cleaning fees		41,151		33,173		7,978
	Signage revenue		18,191		14,828		3,363
	Management and leasing fees		12,365		11,684		681
	Lease termination fees		8,338		67,009		(58,671)
	Other income		16,163		17,980		(1,817)
Total revenues			1,327,224		1,389,929		(62,705)
Operating expenses			534,844		524,915		9,929
Depreciation and amortization			276,676		272,497		4,179
General and administrative			96,726		101,685		(4,959)
Cleveland Medical Mart development project			-		26,525		(26,525)
Impairment losses, acquisition and transaction related costs			25,867		3,951		21,916
Total expenses			934,113		929,573		4,540
Operating income			393,111		460,356		(67,245)
Loss applicable to Toys			(55,744)		(35,102)		(20,642)
Income from partially owned entities			3,981		22,238		(18,257)
Income from Real Estate Fund			118,258		51,034		67,224
Interest and other investment income (loss), net			21,328		(22,660)		43,988
Interest and debt expense			(226,493)		(241,003)		14,510
Net gain (loss) on disposition of wholly owned and partially owned assets			10,540		(35,719)		46,259
Income before income taxes			264,981		199,144		65,837
Income tax expense			(5,181)		(3,950)		(1,231)
Income from continuing operations			259,800		195,194		64,606
Income from discontinued operations			4,043		276,054		(272,011)
Net income			263,843		471,248		(207,405)
Less net income attributable to noncontrolling interests in:
	Consolidated subsidiaries		(75,554)		(26,216)		(49,338)
	Operating Partnership		(8,539)		(22,782)		14,243
	Preferred unit distributions of the Operating Partnership		(25)		(1,134)		1,109
Net income attributable to Vornado			179,725		421,116		(241,391)
Interest and debt expense			350,472		368,241		(17,769)
Depreciation and amortization			369,782		376,316		(6,534)
Income tax expense			19,257		38,393		(19,136)
EBITDA		$	919,236	$	1,204,066	$	(284,830)
Capitalized leasing and development payroll		$	9,848	$	7,562	$	2,286
Capitalized interest		$	30,182	$	17,492	$	12,690

- 11 -

 

EBITDA BY SEGMENT
(unaudited and in thousands)
		Three Months Ended June 30, 2014
										Retail
		Total		New York			Washington, DC			Properties			Toys		Other
Property rentals		$	509,539	$	284,255		$	111,072		$	59,409		$	-	$	54,803
Straight-line rent adjustments			20,105		11,329			2,301			329			-		6,146
Amortization of acquired below-market leases, net			10,480		6,877			456			2,089			-		1,058
Total rentals			540,124		302,461			113,829			61,827			-		62,007
Tenant expense reimbursements			76,202		40,777			9,993			20,306			-		5,126
Fee and other income:
	BMS cleaning fees		22,195		26,924			-			-			-		(4,729)
	Signage revenue		8,873		8,873			-			-			-		-
	Management and leasing fees		6,151		2,815			2,989			386			-		(39)
	Lease termination fees		4,545		2,601			1,249			-			-		695
	Other income		8,516		1,083			6,766			288			-		379
Total revenues			666,606		385,534			134,826			82,807			-		63,439
Operating expenses			261,453		160,740			49,034			29,010			-		22,669
Depreciation and amortization			129,025		63,426			31,746			14,933			-		18,920
General and administrative			44,568		6,646			6,572			4,110			-		27,240
Impairment losses, acquisition and transaction related costs			4,083		-			-			-			-		4,083
Total expenses			439,129		230,812			87,352			48,053			-		72,912
Operating income (loss)			227,477		154,722			47,474			34,754			-		(9,473)
Loss applicable to Toys			(57,591)		-			-			-			(57,591)		-
Income (loss) from partially owned entities			3,849		8,996			(2,248)			341			-		(3,240)
Income from Real Estate Fund			100,110		-			-			-			-		100,110
Interest and other investment income, net			9,435		1,645			42			8			-		7,740
Interest and debt expense			(117,051)		(49,070)			(18,660)			(9,292)			-		(40,029)
Net gain on disposition of wholly owned and
	partially owned assets		905		-			-			-			-		905
Income (loss) before income taxes			167,134		116,293			26,608			25,811			(57,591)		56,013
Income tax expense			(3,599)		(1,226)			(115)			(319)			-		(1,939)
Income (loss) from continuing operations			163,535		115,067			26,493			25,492			(57,591)		54,074
Income (loss) from discontinued operations			2,152		-			-			2,154			-		(2)
Net income (loss)			165,687		115,067			26,493			27,646			(57,591)		54,072
Less net income attributable to noncontrolling interests in:
	Consolidated subsidiaries		(63,975)		(3,108)			-			(21)			-		(60,846)
	Operating Partnership		(4,691)		-			-			-			-		(4,691)
	Preferred unit distributions of the Operating Partnership		(13)		-			-			-			-		(13)
Net income (loss) attributable to Vornado			97,008		111,959			26,493			27,625			(57,591)		(11,478)
Interest and debt expense			179,520		64,072			22,463			10,433			39,529		43,023
Depreciation and amortization			173,443		74,007			35,806			15,803			27,686		20,141
Income tax (benefit) expense			(574)		1,291			132			319			(4,435)		2,119
EBITDA for the three months ended June 30, 2014		$	449,397	$	251,329		$	84,894		$	54,180		$	5,189	$	53,805
EBITDA for the three months ended June 30, 2013		$	497,420	$	235,723		$	84,778		$	118,406		$	9,054	$	49,459
EBITDA as adjusted for comparability - OP basis:
	For the three months ended June 30, 2014	$	449,890	$	251,329	(1)	$	84,894	(2)	$	51,978	(3)	$	-	$	61,689	(4)
	For the three months ended June 30, 2013	$	420,430	$	233,117	(1)	$	84,778	(2)	$	49,330	(3)	$	-	$	53,205	(4)
See notes on pages 14 and 15.

- 12 -

 

EBITDA BY SEGMENT
(unaudited and in thousands)
		Six Months Ended June 30, 2014
										Retail
		Total		New York			Washington, DC			Properties			Toys		Other
Property rentals		$	1,012,899	$	557,141		$	223,670		$	118,683		$	-	$	113,405
Straight-line rent adjustments			33,163		19,010			1,255			811			-		12,087
Amortization of acquired below-market leases, net			22,162		14,669			936			4,190			-		2,367
Total rentals			1,068,224		590,820			225,861			123,684			-		127,859
Tenant expense reimbursements			162,792		85,796			21,528			46,552			-		8,916
Fee and other income:
	BMS cleaning fees		41,151		50,882			-			-			-		(9,731)
	Signage revenue		18,191		18,191			-			-			-		-
	Management and leasing fees		12,365		5,876			6,015			772			-		(298)
	Lease termination fees		8,338		3,419			3,745			216			-		958
	Other income		16,163		1,832			12,955			388			-		988
Total revenues			1,327,224		756,816			270,104			171,612			-		128,692
Operating expenses			534,844		321,161			99,298			63,495			-		50,890
Depreciation and amortization			276,676		137,212			63,607			38,023			-		37,834
General and administrative			96,726		14,438			14,019			8,766			-		59,503
Impairment losses, acquisition and transaction related costs			25,867		-			-			20,000			-		5,867
Total expenses			934,113		472,811			176,924			130,284			-		154,094
Operating income (loss)			393,111		284,005			93,180			41,328			-		(25,402)
Loss applicable to Toys			(55,744)		-			-			-			(55,744)		-
Income (loss) from partially owned entities			3,981		10,562			(3,514)			879			-		(3,946)
Income from Real Estate Fund			118,258		-			-			-			-		118,258
Interest and other investment income, net			21,328		3,120			78			17			-		18,113
Interest and debt expense			(226,493)		(91,909)			(38,007)			(18,509)			-		(78,068)
Net gain on disposition of wholly owned and
	partially owned assets		10,540		-			-			-			-		10,540
Income (loss) before income taxes			264,981		205,778			51,737			23,715			(55,744)		39,495
Income tax (expense) benefit			(5,181)		(2,195)			84			(1,050)			-		(2,020)
Income (loss) from continuing operations			259,800		203,583			51,821			22,665			(55,744)		37,475
Income from discontinued operations			4,043		-			-			3,868			-		175
Net income (loss)			263,843		203,583			51,821			26,533			(55,744)		37,650
Less net income attributable to noncontrolling interests in:
	Consolidated subsidiaries		(75,554)		(4,513)			-			(38)			-		(71,003)
	Operating Partnership		(8,539)		-			-			-			-		(8,539)
	Preferred unit distributions of the Operating Partnership		(25)		-			-			-			-		(25)
Net income (loss) attributable to Vornado			179,725		199,070			51,821			26,495			(55,744)		(41,917)
Interest and debt expense			350,472		122,140			45,261			20,784			78,078		84,209
Depreciation and amortization			369,782		161,594			71,956			41,131			54,610		40,491
Income tax expense (benefit)			19,257		2,323			(57)			1,050			13,642		2,299
EBITDA for the six months ended June 30, 2014		$	919,236	$	485,127		$	168,981		$	89,460		$	90,586	$	85,082
EBITDA for the six months ended June 30, 2013		$	1,204,066	$	453,260		$	171,022		$	440,732		$	151,015	$	(11,963)
EBITDA as adjusted for comparability - OP basis:
	For the six months ended June 30, 2014	$	847,044	$	485,127	(1)	$	168,981	(2)	$	104,138	(3)	$	-	$	88,798	(4)
	For the six months ended June 30, 2013	$	808,032	$	448,220	(1)	$	171,022	(2)	$	100,064	(3)	$	-	$	88,726	(4)
See notes on the following pages.

- 13 -

 

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 June 30,				Six Months Ended June 30,
			2014		2013		2014		2013
		Office	$	162,833	$	155,692	$	320,712	$	299,643
		Retail		67,947		57,118		134,142		117,411
		Alexander's		10,271		10,213		20,701		20,754
		Hotel Pennsylvania		10,278		10,094		9,572		10,412
		Total New York	$	251,329	$	233,117	$	485,127	$	448,220
(2)	The elements of "Washington, DC" EBITDA as adjusted for comparability are summarized below.
			Three Months Ended June 30,				Six Months Ended June 30,
			2014		2013		2014		2013
		Office, excluding the Skyline Properties	$	67,057	$	66,136	$	134,314	$	133,243
		Skyline properties		7,073		7,543		13,572		15,705
		Total Office		74,130		73,679		147,886		148,948
		Residential		10,764		11,099		21,095		22,074
		Total Washington, DC	$	84,894	$	84,778	$	168,981	$	171,022
(3)	The elements of "Retail Properties" EBITDA as adjusted for comparability are summarized below.
			Three Months Ended June 30,				Six Months Ended June 30,
			2014		2013		2014		2013
		Strip shopping centers	$	37,781	$	34,826	$	76,216	$	71,414
		Regional malls		14,197		14,504		27,922		28,650
		Total Retail properties	$	51,978	$	49,330	$	104,138	$	100,064

- 14 -

 

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 June 30,				Six Months Ended June 30,
			2014		2013		2014		2013
	Our share of Real Estate Fund:
		Income before net realized/unrealized gains	$	2,191	$	1,643	$	4,617	$	3,651
		Net realized gains on exited investments		18,767		-		18,767		-
		Previously recorded unrealized gains on exited investments		(8,841)		-		(5,597)		-
		Net unrealized gains on held investments		14,339		8,398		14,637		11,777
		Carried interest		11,874		10,070		13,205		11,707
	Total			38,330		20,111		45,629		27,135
	The Mart and trade shows			22,454		22,453		41,541		39,307
	555 California Street			11,506		11,022		23,572		21,651
	India real estate ventures			99		2,254		1,923		4,013
	Lexington(a)			-		-		-		2,770
	Other investments			4,290		5,487		9,032		13,392
				76,679		61,327		121,697		108,268
	Corporate general and administrative expenses(b)			(23,022)		(24,831)		(49,004)		(47,587)
	Investment income and other, net(b)			8,032		16,709		16,105		28,045
		Total Other	$	61,689	$	53,205	$	88,798	$	88,726
	(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 of $2,380 and $2,492 for the three months ended June 30, 2014 and 2013, respectively, and $6,780 and $5,938 for the six months ended June 30, 2014 and 2013, respectively.

- 15 -

 

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 June 30,		Six Months Ended June 30,
		2014	2013	2014	2013
Segment
	New York	65%	64%	64%	62%
	Washington, DC	22%	23%	22%	24%
	Retail Properties	13%	13%	14%	14%
		100%	100%	100%	100%
Region
	New York City metropolitan area	75%	74%	74%	73%
	Washington, DC / Northern Virginia metropolitan area	23%	24%	23%	24%
	Puerto Rico	1%	2%	2%	2%
	Other geographies	1%	-	1%	1%
		100%	100%	100%	100%

- 16 -

 

CONSOLIDATED BALANCE SHEETS
(unaudited and in thousands)
				June 30,		December 31,		(Decrease)
				2014		2013		Increase
ASSETS
	Real estate, at cost:
		Land		$	4,051,053	$	4,068,306	$	(17,253)
		Buildings and improvements			12,519,973		12,475,556		44,417
		Development costs and construction in progress			1,550,084		1,353,121		196,963
		Leasehold improvements and equipment			132,485		132,483		2
			Total		18,253,595		18,029,466		224,129
		Less accumulated depreciation and amortization			(3,527,372)		(3,381,457)		(145,915)
	Real estate, net				14,726,223		14,648,009		78,214
	Cash and cash equivalents				1,371,226		583,290		787,936
	Restricted cash				160,353		262,440		(102,087)
	Marketable securities				206,917		191,917		15,000
	Tenant and other receivables, net				118,217		115,862		2,355
	Investments in partially owned entities				1,267,370		1,166,443		100,927
	Investment in Toys				26,309		83,224		(56,915)
	Real Estate Fund investments				549,091		667,710		(118,619)
	Mortgage and mezzanine loans receivable, net				17,417		170,972		(153,555)
	Receivable arising from the straight-lining of rents, net				850,278		817,357		32,921
	Deferred leasing and financing costs, net				467,455		411,927		55,528
	Identified intangible assets, net				289,475		311,963		(22,488)
	Assets related to discontinued operations				208,309		314,622		(106,313)
	Other assets				478,139		351,488		126,651
		Total assets		$	20,736,779	$	20,097,224	$	639,555
LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND EQUITY
Liabilities:
	Mortgages payable			$	8,988,843	$	8,331,993	$	656,850
	Senior unsecured notes				1,791,814		1,350,855		440,959
	Revolving credit facility debt				88,138		295,870		(207,732)
	Accounts payable and accrued expenses				452,641		422,276		30,365
	Deferred revenue				501,384		529,048		(27,664)
	Deferred compensation plan				111,858		116,515		(4,657)
	Liabilities related to discontinued operations				-		13,950		(13,950)
	Other liabilities				382,789		438,353		(55,564)
		Total liabilities			12,317,467		11,498,860		818,607
Redeemable noncontrolling interests					1,220,958		1,003,620		217,338
Vornado shareholders' equity					6,454,144		6,765,232		(311,088)
Noncontrolling interests in consolidated subsidiaries					744,210		829,512		(85,302)
		Total liabilities, redeemable noncontrolling interests and equity		$	20,736,779	$	20,097,224	$	639,555

- 17 -

 

CAPITAL STRUCTURE
(unaudited and in thousands, except per share amounts)
Debt:							June 30, 2014
	Consolidated debt:
		Mortgages payable					$	8,988,843
		Senior unsecured notes						1,791,814
		$2.5 billion revolving credit facilities						88,138
								10,868,795
	Pro rata share of non-consolidated debt:
		Toys						1,699,853
		All other partially owned entities						2,394,517
	Less: Noncontrolling interests' share of consolidated debt
			(primarily 1290 Avenue of the Americas and 555 California Street)					(465,000)
Total debt								14,498,165
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
					June 30, 2014
				Converted	Common
Equity:				Shares	Share Price
Common shares				187,665	$	106.73		20,029,485
Class A units				10,657		106.73		1,137,422
Convertible share equivalents:
	Equity awards - unit equivalents			773		106.73		82,502
	D-13 preferred units			437		106.73		46,641
	G1-G4 units			79		106.73		8,432
	Series A preferred shares			41		106.73		4,376
								21,308,858
Total Market Capitalization							$	37,124,273

- 18 -

 

DEBT ANALYSIS
(unaudited and in thousands)
					As of June 30, 2014
			Total				Variable					Fixed
					Weighted				Weighted					Weighted
					Average				Average					Average
			Amount		Interest Rate		Amount		Interest Rate			Amount		Interest Rate
Consolidated debt			$	10,868,795		4.25%	$	1,453,932		2.25%		$	9,414,863		4.56%
Pro rata share of non-consolidated debt:
	Toys			1,699,853		6.90%		1,017,031		5.81%			682,822		8.53%
	All other			2,394,517		5.28%		303,673		1.75%			2,090,844		5.79%
Total				14,963,165		4.71%		2,774,636		3.50%			12,188,529		4.98%
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			$	14,498,165		4.73%	$	2,774,636		3.50%		$	11,723,529		5.02%
			Senior Unsecured Notes										Unencumbered EBITDA
			Due 2015		Due 2019		Due 2022		Due 2039					2Q 2014
Settlement Date				3/26/2010		6/16/2014		12/7/2011		9/30/2009				Annualized
Principal Amount				$ 500,000		$ 450,000		$ 400,000		$ 445,000			New York	$	402,600
Issue Price				99.834%		99.619%		99.546%		100.000%			Washington, DC		187,764
Coupon				4.250%		2.500%		5.000%		7.875%			Retail Properties		68,940
Effective economic interest rate				4.287%		2.581%		5.057%		7.875%			Other		36,144
Ratings:													Total	$	695,448
	Moody's			Baa2		Baa2		Baa2		Baa2
	S&P			BBB		BBB		BBB		BBB
	Fitch			BBB		BBB		BBB		BBB
Maturity Date / Put Date				4/1/2015		6/30/2019		1/15/2022		10/1/2039	(1)
Debt Covenant Ratios: (2)		Senior Unsecured Notes										Revolving Credit Facilities
			Actual
		Required	Due 2015		Due 2019		Due 2022		Due 2039			Required		Actual
Total Outstanding Debt / Total Assets (3)		Less than 65%		42%		42%		42%		45%		Less than 60%			31%
Secured Debt / Total Assets		Less than 50%		35%		35%		35%		37%		Less than 50%			29%
Interest Coverage Ratio (Annualized Combined
	EBITDA to Annualized Interest Expense)	Greater than 1.50		2.81		2.81		2.81		2.81					N/A
Fixed Charge Coverage				N/A		N/A		N/A		N/A		Greater than 1.40			2.51
Unencumbered Assets / Unsecured Debt		Greater than 150%		649%		649%		649%		633%					N/A
Unsecured Debt / Cap Value of Unencumbered Assets				N/A		N/A		N/A		N/A		Less than 60%			9%
Unencumbered Coverage Ratio				N/A		N/A		N/A		N/A		Greater than 1.50			7.19
(1)	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.
(2)	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.
(3)	Total assets includes EBITDA capped at 7.5% under the senior unsecured notes and 6.0% under the revolving credit facilities.

- 19 -

 

DEBT MATURITIES
(unaudited and in thousands)
			Spread
		Maturity	over	Interest
Property		Date (1)	LIBOR	Rate	2014		2015		2016		2017		2018		Thereafter		Total
2200 / 2300 Clarendon Boulevard		01/15	L+75	0.90%	$	-	$	38,213	$	-	$	-	$	-	$	-	$	38,213
Senior unsecured notes due 2015		04/15		4.25%		-		499,876		-		-		-		-		499,876
River House Apartments		04/15		5.43%		-		195,546		-		-		-		-		195,546
888 Seventh Avenue		01/16		5.71%		-		-		318,554		-		-		-		318,554
510 5th Avenue		01/16		5.60%		-		-		30,470		-		-		-		30,470
770 Broadway		03/16		5.65%		-		-		353,000		-		-		-		353,000
Bowen Building		06/16		6.14%		-		-		115,022		-		-		-		115,022
1730 M and 1150 17th Street		06/16	L+125	1.40%		-		-		43,581		-		-		-		43,581
Montehiedra Town Center		07/16		6.04%		-		-		120,000		-		-		-		120,000
$1.25 Billion unsecured revolving credit facility		11/16	L+125	-		-		-		-		-		-		-		-
The Mart		12/16		5.57%		-		-		550,000		-		-		-		550,000
350 Park Avenue		01/17		3.75%		-		-		-		297,727		-		-		297,727
100 West 33rd Street - office and retail		03/17	L+150	1.65%		-		-		-		325,000		-		-		325,000
2011 Crystal Drive		08/17		7.30%		-		-		-		78,084		-		-		78,084
North Bergen (Tonnelle Avenue)		01/18		4.59%		-		-		-		-		75,000		-		75,000
220 20th Street		02/18		4.61%		-		-		-		-		72,025		-		72,025
Two Penn Plaza		03/18		5.13%		-		-		-		-		423,949		-		423,949
River House Apartments		04/18	L+153	1.68%		-		-		-		-		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	1.30%		-		-		-		-		88,138		-		88,138
220 Central Park South		01/19	L+275	2.90%		-		-		-		-		-		600,000		600,000
Senior unsecured notes due 2019		06/19		2.50%		-		-		-		-		-		448,285		448,285
435 Seventh Avenue - retail		08/19	L+225	2.40%		-		-		-		-		-		98,000		98,000
4 Union Square South - retail		11/19	L+215	2.30%		-		-		-		-		-		120,000		120,000
Cross-collateralized mortgages on 40
	strip shopping centers	09/20	(2)	4.09%		-		-		-		-		-		613,914		613,914
Eleven Penn Plaza		12/20		3.95%		-		-		-		-		-		450,000		450,000
Borgata Land		02/21		5.14%		-		-		-		-		-		58,882		58,882
909 Third Avenue		05/21		3.91%		-		-		-		-		-		350,000		350,000
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%		-		-		-		-		-		398,653		398,653
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%		-		-		-		-		-		147,460		147,460
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.

- 20 -

 

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%	$	-	$	-	$	-	$	-	$	-	$	99,312	$	99,312
Senior unsecured notes due 2039		10/39		7.88%		-		-		-		-		-		445,000		445,000
Other properties		Various				19,759		12,246		-		-		28,673		39,906		100,584
Purchase accounting valuation adjustments		Various				(23)		(106)		-		-		-		978		849
Total					$	19,736	$	745,775	$	1,530,627	$	700,811	$	831,785	$	7,040,061	$	10,868,795
Weighted average rate						6.90%		4.44%		5.58%		3.17%		4.32%		4.03%		4.25%
Fixed rate debt					$	19,736	$	707,562	$	1,487,046	$	375,811	$	662,647	$	6,162,061	$	9,414,863
Fixed weighted average rate expiring						6.90%		4.63%		5.70%		4.49%		5.05%		4.21%		4.56%
Floating rate debt					$	-	$	38,213	$	43,581	$	325,000	$	169,138	$	878,000	$	1,453,932
Floating weighted average rate expiring						-		0.90%		1.40%		1.65%		1.46%		2.73%		2.25%
(1)	Represents the extended maturity for certain loans in which we have the unilateral right to extend.
(2)	Comprised of (i) a $553,914 fixed rate loan with an interest rate of 4.28%, and a (ii) $60,000 variable rate loan at LIBOR plus 1.36% (2.36% at June 30, 2014), subject to a LIBOR floor of 1.00%.

- 21 -

 

UNCONSOLIDATED JOINT VENTURES
(unaudited and in thousands)
						As of June 30, 2014
								Debt
				Percentage		Company's		Company's
		Asset		Ownership at		Carrying		Pro rata		100% of
Joint Venture Name		Category		June 30, 2014		Amount		Share		Joint Venture
Toys			Retailer		32.6%	$	26,309	$	1,699,853	$	5,206,299
Alexander's, Inc.			Office/Retail		32.4%	$	167,004	$	335,109	$	1,034,289
India real estate ventures			Office/Land		4.1% to 36.5%		87,859		48,973		195,891
Partially owned office buildings:
	280 Park Avenue		Office		49.5%		265,701		362,971		733,520
	One Park Avenue		Office		55.0%		137,348		137,500		250,000
	650 Madison Avenue		Office/Retail		20.1%		115,339		161,024		800,000
	Rosslyn Plaza	Office/Residential			43.7% to 50.4%		55,144		16,882		33,487
	West 57th Street properties		Office		50.0%		49,292		10,000		20,000
	666 Fifth Avenue Office Condominium		Office		49.5%		43,783		592,119		1,196,201
	330 Madison Avenue		Office		25.0%		30,672		37,500		150,000
	Warner Building		Office		55.0%		16,441		160,985		292,700
	Fairfax Square		Office		20.0%		5,196		13,748		68,741
	1101 17th Street		Office		55.0%		-		17,050		31,000
	Other partially owned office buildings		Office		Various		6,567		27,715		70,650
Other investments:
	Independence Plaza		Residential		50.1%		158,413		275,550		550,000
	Monmouth Mall		Retail		50.0%		6,509		78,208		156,415
	Other investments		Various		Various		122,102		119,183		997,171
						$	1,267,370	$	2,394,517	$	6,580,065

- 22 -

 

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 June 30,				Three Months Ended June 30,
Joint Venture Name		June 30, 2014		2014		2013		2014		2013
Toys			32.6%	$	(57,591)	$	(36,861)	$	5,189	$	9,054
New York:
	Alexander's, Inc.		32.4%	$	5,272	$	4,077	$	10,271	$	10,213
	825 Seventh Avenue		50.0%		5,201		454		862		763
	West 57th Street properties (partially under development)		50.0%		(4,978)		196		373		693
	666 Fifth Avenue Office Condominium		49.5%		1,934		1,899		7,646		5,312
	330 Madison Avenue		25.0%		1,674		1,185		2,400		2,077
	650 Madison Avenue (acquired in September 2013)		20.1%		(556)		-		3,276		-
	280 Park Avenue (partially under development)		49.5%		357		(2,021)		5,959		5,084
	Independence Plaza		50.1%		239		(1,118)		5,574		2,622
	One Park Avenue		55.0%		181		(83)		2,079		1,970
	Other		Various		(328)		(363)		676		595
					8,996		4,226		39,116		29,329
Washington, DC:
	Warner Building		55.0%		(1,462)		(1,996)		2,264		1,757
	Rosslyn Plaza		43.7% to 50.4%		(1,499)		(1,005)		823		1,532
	1101 17th Street		55.0%		278		236		604		548
	Fairfax Square		20.0%		83		(18)		649		534
	Other		Various		352		334		1,292		1,246
					(2,248)		(2,449)		5,632		5,617
Retail Properties:
	Monmouth Mall		50.0%		319		426		2,191		2,300
	Other		Various		22		(3)		114		90
					341		423		2,305		2,390
Other:
	India real estate ventures		4.1% to 36.5%		(2,041)		(414)		99		2,254
	Alexander's corporate fee income		32.4%		1,622		1,674		1,622		1,674
	Downtown Crossing, Boston		n/a		-		16		-		16
	Other		Various		(2,821)		(2,004)		5,164		6,558
					(3,240)		(728)		6,885		10,502
				$	3,849	$	1,472	$	53,938	$	47,838

- 23 -

 

UNCONSOLIDATED JOINT VENTURES
(unaudited and in thousands)
			Percentage		Our Share of Net Income (Loss) for the				Our Share of EBITDA for the
			Ownership at		Six Months Ended June 30,				Six Months Ended June 30,
Joint Venture Name			June 30, 2014		2014		2013		2014		2013
Toys				32.6%	$	(55,744)	$	(35,102)	$	90,586	$	151,015
New York:
		Alexander's, Inc.		32.4%	$	10,031	$	8,486	$	20,701	$	20,754
		West 57th Street properties (partially under development)		50.0%		(7,577)		368		863		1,422
		825 Seventh Avenue		50.0%		5,676		816		1,630		1,436
		666 Fifth Avenue Office Condominium		49.5%		3,939		3,918		15,041		10,484
		330 Madison Avenue		25.0%		3,019		2,489		4,667		4,204
		650 Madison Avenue (acquired in September 2013)		20.1%		(2,646)		-		6,193		-
		Independence Plaza		50.1%		(1,825)		(1,118)		9,910		2,622
		280 Park Avenue (partially under development)		49.5%		306		(4,590)		11,221		9,533
		One Park Avenue		55.0%		279		374		3,949		4,074
		Other		Various		(640)		(912)		1,356		1,253
						10,562		9,831		75,531		55,782
Washington, DC:
		Warner Building		55.0%		(2,948)		(4,342)		4,523		3,126
		Rosslyn Plaza		43.7% to 50.4%		(2,071)		(1,451)		2,479		3,330
		1101 17th Street		55.0%		564		620		1,201		1,273
		Fairfax Square		20.0%		116		(63)		1,247		1,055
		Other		Various		825		694		2,667		2,518
						(3,514)		(4,542)		12,117		11,302
Retail Properties:
		Monmouth Mall		50.0%		836		1,285		4,582		5,001
		Other		Various		43		39		227		232
						879		1,324		4,809		5,233
Other:
		Alexander's corporate fee income		32.4%		3,248		3,341		3,248		3,341
		India real estate ventures		4.1% to 36.5%		(2,178)		(1,181)		1,923		4,013
		LNR (1)		n/a		-		18,731		-		20,443
		Downtown Crossing, Boston		n/a		-		(2,358)		-		(2,358)
		Lexington (2)		n/a		-		(979)		-		6,931
		Other		Various		(5,016)		(1,929)		11,372		13,933
						(3,946)		15,625		16,543		46,303
					$	3,981	$	22,238	$	109,000	$	118,620
(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.

- 24 -

 

SQUARE FOOTAGEin service
(unaudited and square feet in thousands)
				Owned by Company
			Total
			Portfolio	Total	Office		Retail	Showroom	Other
Segment:
	New York:
		Office	19,852	16,626	16,443		-	183	-
		Retail	2,351	2,169	-		2,169	-	-
		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
			27,304	21,663	16,730		2,588	183	2,162
	Washington, DC:
		Office, excluding the Skyline Properties	13,308	11,000	10,179		821	-	-
		Skyline Properties	2,652	2,652	2,613		39	-	-
		Total Office	15,960	13,652	12,792		860	-	-
		Residential (2,414 units)	2,597	2,455	-		-	-	2,455
		Other	381	381	-		9	-	372
			18,938	16,488	12,792		869	-	2,827
	Retail Properties:
		Strip Shopping Centers	14,565	14,138	-		14,138	-	-
		Regional Malls	4,132	2,644	-		2,644	-	-
			18,697	16,782	-		16,782	-	-
	Other:
		The Mart	3,578	3,569	1,684		99	1,786	-
		555 California Street (70% interest)	1,797	1,258	1,165		93	-	-
		Primarily Warehouses	971	971	-		-	-	971
			6,346	5,798	2,849		192	1,786	971
Total square feet at June 30, 2014			71,285	60,731	32,371		20,431	1,969	5,960
Total square feet at March 31, 2014			71,352	60,531	32,123		20,426	2,025	5,957
					Number of		Number of
Parking Garages (not included above):				Square Feet	Garages		Spaces
	New York			1,668	10		4,909
	Washington, DC			8,928	56		29,628
	The Mart			558	4		1,681
	555 California Street			168	1		453
	Total at June 30, 2014			11,322	71		36,671
						Building Owned
Number of Toys stores (not included above):				Total	Owned	on Leased Ground		Leased
	Domestic			876	283		219	374
	International			709	78		26	605
	Total Owned and Leased			1,585	361		245	979
	Franchised Stores			194
	Total at June 30, 2014			1,779

- 25 -

 

TOP 30 TENANTS
(unaudited)
			2014
			Annualized		% of 2014
	Square		Revenues		Annualized
Tenants	Footage		(in thousands)		Revenues
U.S. Government		4,175,489	$	147,524		5.5%
Draftfcb		754,979		42,163		1.6%
Bank of America		759,065		38,815		1.5%
Macy's		942,678		37,683		1.4%
AXA Equitable Life Insurance		423,174		37,370		1.4%
Limited Brands		505,381		36,066		1.4%
McGraw-Hill Companies, Inc.		479,557		27,380		1.0%
Ziff Brothers Investments, Inc.		287,030		26,394		1.0%
New York Stock Exchange		381,425		24,776		0.9%
J. Crew		396,215		24,434		0.9%
Hennes & Mauritz		110,646		24,155		0.9%
Madison Square Garden		384,734		23,145		0.9%
Fast Retailing (Uniqlo)		92,577		20,367		0.8%
Sears Holding Company (Kmart Corporation and Sears Corporation)		923,560		20,187		0.8%
Topshop		94,349		20,181		0.8%
Motorola Mobility (owned by Google)		607,872		20,065		0.8%
Forever 21		125,279		19,533		0.7%
The Home Depot		993,541		19,386		0.7%
AOL		230,365		19,354		0.7%
Rainbow Media Holdings		283,745		18,392		0.7%
Family Health International		401,569		17,921		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		15,888		0.6%
Lockheed Martin		328,919		14,622		0.5%
Cushman & Wakefield		166,287		13,787		0.5%
Lowe's		976,415		12,809		0.5%
Best Buy		529,812		12,665		0.5%
Information Builders, Inc.		243,486		12,326		0.5%

- 26 -

 

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			22,000	$	759,000	$	34.50		0.1%
		Third Quarter 2014			149,000		9,796,000		65.74		1.0%
		Fourth Quarter 2014			159,000		11,232,000		70.64		1.1%
		Total 2014			308,000		21,028,000		68.27		2.1%
		First Quarter 2015			60,000		3,150,000		52.50		0.3%
		Second Quarter 2015			642,000		38,323,000		59.69		4.0%
		Remaining 2015			350,000		24,034,000		68.67		2.3%
		Total 2015			1,052,000		65,507,000		62.27		6.6%
		2016��			1,372,000		82,856,000		60.39		8.2%
		2017			888,000		55,534,000		62.54		5.5%
		2018			1,010,000		73,638,000		72.91		7.4%
		2019			963,000		63,240,000		65.67		6.5%
		2020			1,336,000		79,194,000		59.28		8.2%
		2021			1,137,000		72,826,000		64.05		7.4%
		2022			1,259,000		81,316,000		64.59		8.5%
		2023			1,636,000		111,832,000		68.36		11.7%
	Retail:	Month to Month			40,000	$	8,313,000	$	207.83		4.2%
		Third Quarter 2014			17,000		1,949,000		114.65		1.0%
		Fourth Quarter 2014			3,000		595,000		198.33		0.3%
		Total 2014			20,000		2,544,000		127.20		1.3%
		First Quarter 2015			78,000		19,599,000		251.27		9.9%
		Second Quarter 2015			3,000		1,043,000		347.67		0.5%
		Remaining 2015			26,000		3,369,000		129.58		1.7%
		Total 2015			107,000		24,011,000		224.40		12.1%
		2016			222,000		21,795,000		98.18		11.0%
		2017			21,000		1,988,000		94.67		1.0%
		2018			213,000		41,952,000		196.96		21.3%
		2019			111,000		25,718,000		231.69		13.0%
		2020			119,000		13,152,000		110.52		6.7%
		2021			179,000		13,452,000		75.15		6.8%
		2022			27,000		3,430,000		127.04		1.7%
		2023			93,000		18,933,000		203.58		9.6%

- 27 -

 

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			179,000	$	6,832,000	$	38.26		1.6%
		Third Quarter 2014			399,000		13,033,000		32.69		3.0%
		Fourth Quarter 2014			188,000		8,082,000		42.90		1.9%
		Total 2014			587,000		21,115,000		35.96		4.8%
		First Quarter 2015			558,000		24,641,000		44.15		5.6%
		Second Quarter 2015			252,000		12,517,000		49.67		2.9%
		Remaining 2015			995,000		38,054,000		38.25		8.7%
		Total 2015			1,805,000		75,212,000		41.67		17.2%
		2016			1,207,000		51,753,000		42.87		11.9%
		2017			631,000		25,567,000		40.53		5.9%
		2018			1,001,000		42,955,000		42.93		9.8%
		2019			1,348,000		57,052,000		42.33		13.1%
		2020			656,000		33,371,000		50.87		7.6%
		2021			549,000		24,933,000		45.39		5.7%
		2022			940,000		41,141,000		43.79		9.4%
		2023			178,000		8,096,000		45.44		1.9%

- 28 -

 

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			33,000	$	683,000	$	20.77		0.4%
		Third Quarter 2014			51,000		1,327,000		26.12		0.7%
		Fourth Quarter 2014			124,000		2,072,000		16.76		1.1%
		Total 2014			175,000		3,399,000		19.49		1.9%
		First Quarter 2015			133,000		2,191,000		16.43		1.2%
		Second Quarter 2015			78,000		980,000		12.55		0.5%
		Remaining 2015			209,000		5,217,000		24.93		2.8%
		Total 2015			420,000		8,388,000		19.94		4.6%
		2016			810,000		12,246,000		15.13		6.7%
		2017			518,000		7,773,000		15.01		4.2%
		2018			1,589,000		21,695,000		13.66		11.8%
		2019			1,373,000		19,604,000		14.28		10.7%
		2020			1,047,000		14,332,000		13.69		7.8%
		2021			594,000		8,782,000		14.78		4.8%
		2022			1,023,000		12,709,000		12.43		6.9%
		2023			1,163,000		18,735,000		16.10		10.2%
	Regional Malls:	Month to Month			7,000	$	499,000	$	72.49		1.0%
		Third Quarter 2014			2,000		109,000		56.93		0.2%
		Fourth Quarter 2014			37,000		1,250,000		33.97		2.5%
		Total 2014			39,000		1,359,000		35.11		2.7%
		First Quarter 2015			30,000		1,512,000		50.61		3.0%
		Second Quarter 2015			19,000		1,105,000		56.72		2.2%
		Remaining 2015			44,000		1,268,000		29.05		2.5%
		Total 2015			93,000		3,885,000		41.78		7.7%
		2016			88,000		3,850,000		43.68		7.6%
		2017			41,000		2,508,000		60.67		4.9%
		2018			70,000		3,608,000		51.67		7.1%
		2019			175,000		6,122,000		34.90		12.1%
		2020			96,000		4,150,000		43.15		8.2%
		2021			382,000		4,271,000		11.19		8.4%
		2022			37,000		1,356,000		36.89		2.7%
		2023			37,000		1,449,000		39.41		2.9%

- 29 -

 

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 June 30, 2014
	Total square feet leased					1,222		23		352			231		54
	Our share of square feet leased:					1,034		23		336			231		51
		Initial rent(1)			$	69.43	$	452.81	$	37.58		$	20.82	$	21.92
		Weighted average lease term (years)				11.6		8.6		6.7			6.0		4.8
		Second generation relet space:
			Square feet			1,009		22		256			128		47
			Cash basis:
				Initial rent(1)	$	69.07	$	468.05	$	38.29		$	24.68	$	19.00
				Prior escalated rent	$	62.55	$	358.97	$	42.06		$	22.66	$	18.00
				Percentage increase (decrease)		10.4%		30.4%		(9.0%)			8.9%		5.6%
			GAAP basis:
				Straight-line rent(2)	$	69.14	$	534.56	$	37.64		$	24.78	$	19.00
				Prior straight-line rent	$	58.07	$	340.11	$	39.20		$	21.74	$	18.00
				Percentage increase (decrease)		19.1%		57.2%		(4.0%)			14.0%		5.6%
		Tenant improvements and leasing commissions:
			Per square foot		$	76.39	$	133.02	$	34.95		$	2.75	$	-
			Per square foot per annum		$	6.59	$	15.47	$	5.22		$	0.46	$	-
				Percentage of initial rent		9.5%		3.4%		13.9%			2.2%		-
Six Months Ended June 30, 2014
	Total square feet leased					2,169		34		709	(3)		464		79
	Our share of square feet leased:					1,840		34		678	(3)		464		72
		Initial rent(1)			$	66.34	$	338.77	$	40.27		$	19.48	$	25.25
		Weighted average lease term (years)				11.2		10.7		7.7			6.0		5.1
		Second generation relet space:
			Square feet			1,574		32		467			335		53
			Cash basis:
				Initial rent (1)	$	67.72	$	357.64	$	40.19		$	20.84	$	22.26
				Prior escalated rent	$	60.53	$	270.65	$	42.62		$	19.73	$	21.11
				Percentage increase (decrease)		11.9%		32.1%		(5.7%)			5.6%		5.4%
			GAAP basis:
				Straight-line rent (2)	$	67.01	$	406.90	$	38.63		$	21.18	$	22.68
				Prior straight-line rent	$	56.46	$	269.43	$	38.80		$	19.01	$	21.04
				Percentage increase (decrease)		18.7%		51.0%		(0.5%)			11.4%		7.8%
		Tenant improvements and leasing commissions:
			Per square foot		$	72.48	$	88.72	$	40.26		$	2.76	$	3.70
			Per square foot per annum		$	6.47	$	8.29	$	5.23		$	0.46	$	0.73
				Percentage of initial rent		9.8%		2.4%		13.0%			2.4%		2.9%

- 30 -

 

LEASING ACTIVITY
(unaudited)
					New York				Washington, DC		Retail Properties
(square feet in thousands)					Office		Retail		Office		Strips		Malls
Year Ended December 31, 2013
	Total square feet leased					2,410		138		1,836		1,388		674
	Our share of square feet leased:					2,024		121		1,392		1,388		600
		Initial rent (1)			$	60.78	$	268.52	$	39.91	$	17.27	$	26.39
		Weighted average lease term (years)				11.0		8.6		7.0		6.2		8.1
		Second generation relet space:
			Square feet			1,716		103		910		959		205
			Cash basis:
				Initial rent (1)	$	60.04	$	262.67	$	40.91	$	16.57	$	23.59
				Prior escalated rent	$	56.84	$	117.45	$	41.16	$	15.18	$	22.76
				Percentage increase (decrease)		5.6%		123.7%		(0.6%)		9.2%		3.6%
			GAAP basis:
				Straight-line rent (2)	$	59.98	$	293.45	$	40.87	$	16.91	$	24.04
				Prior straight-line rent	$	52.61	$	152.34	$	39.36	$	14.76	$	21.87
				Percentage increase		14.0%		92.6%		3.8%		14.6%		9.9%
		Tenant improvements and leasing commissions:
			Per square foot		$	61.78	$	100.93	$	33.24	$	3.96	$	20.69
				Per square foot per annum	$	5.61	$	11.64	$	4.75	$	0.64	$	2.55
				Percentage of initial rent		9.2%		4.3%		11.9%		3.7%		9.7%
(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 that will be redeveloped into rental residential apartments, and (ii) 57 square feet of retail space that was leased at an initial rent of $51.74 per square foot.

- 31 -

 

OCCUPANCY, SAME STORE EBITDA AND RESIDENTIAL STATISTICS
(unaudited)
Occupancy and Same Store EBITDA:
						New York	Washington, DC(1)	Retail Properties
Occupancy rate at:
	June 30, 2014					97.3%	83.5%	94.0%
	March 31, 2014					97.0%	83.3%	94.2%
	December 31, 2013					96.8%	83.4%	94.6%
	June 30, 2013					96.1%	83.6%	94.5%
Same store EBITDA % increase (decrease):
	Three months ended June 30, 2014 vs. June 30, 2013					5.2%(2)	(1.8%)	1.8%
	Six Months Ended June 30, 2014 vs. June 30, 2013					5.6%(3)	(2.2%)	1.6%
	Three months ended June 30, 2014 vs. March 31, 2014					6.4%(4)	1.1%	1.8%
Cash basis same store EBITDA % increase (decrease):
	Three months ended June 30, 2014 vs. June 30, 2013					6.9%(2)	(1.7%)	3.1%
	Six Months Ended June 30, 2014 vs. June 30, 2013					8.5%(3)	(0.5%)	2.3%
	Three months ended June 30, 2014 vs. March 31, 2014					6.2%(4)	(0.3%)	1.7%
(1)	The total office occupancy rates for the Washington, DC segment were as follows:
		June 30, 2014	80.5%
		March 31, 2014	80.5%
		December 31, 2013	80.7%
		June 30, 2013	80.7%
(2)	Excluding the Hotel Pennsylvania, same store EBITDA increased by 5.3% and by 7.2% on a cash basis.
(3)	Excluding the Hotel Pennsylvania, same store EBITDA increased by 6.0% and by 9.0% on a cash basis.
(4)	Excluding the Hotel Pennsylvania, same store EBITDA increased by 1.7% and by 0.8% on a cash basis.
Residential Statistics:
					Average Monthly
			Number of Units	Occupancy Rate	Rent Per Unit
	New York:
		June 30, 2014	1,655	97.1%	$	3,060
		March 31, 2014	1,655	96.2%	$	2,858
		December 31, 2013	1,655	94.8%	$	2,864
		June 30, 2013	1,655	94.5%	$	2,698
	Washington, DC:
		June 30, 2014	2,414	98.0%	$	2,122
		March 31, 2014	2,414	96.8%	$	2,102
		December 31, 2013	2,405	96.3%	$	2,101
		June 30, 2013	2,414	97.1%	$	2,118

- 32 -

 

CAPITAL EXPENDITURES,
TENANT IMPROVEMENTS AND LEASING COMMISSIONS
CONSOLIDATED
(unaudited and in thousands)
		Six Months Ended		Year Ended
Capital expenditures (accrual basis):		June 30, 2014		2013		2012
Expenditures to maintain assets		$	34,110	$	73,130	$	69,912
Tenant improvements			114,133		152,319		177,743
Leasing commissions			50,624		56,638		57,961
Non-recurring capital expenditures			17,761		12,099		6,902
Total capital expenditures and leasing commissions (accrual basis)			216,628		294,186		312,518
Adjustments to reconcile to cash basis:
	Expenditures in the current year applicable to prior periods		67,908		155,035		105,350
	Expenditures to be made in future periods for the current period		(143,636)		(150,067)		(170,744)
Total capital expenditures and leasing commissions (cash basis)		$	140,900	$	299,154	$	247,124
Our share of square feet leased			3,088		5,525		5,217
Tenant improvements and leasing commissions per square foot per annum		$	5.63	$	4.33	$	4.16
Percentage of initial rent			10.1%		9.5%		9.6%
Development and redevelopment expenditures:
	Springfield Town Center	$	54,743	$	68,716	$	18,278
	Marriott Marquis Times Square - retail and signage		38,659		40,356		9,092
	220 Central Park South		27,372		243,687		12,191
	330 West 34th Street		21,816		6,832		8
	608 Fifth Avenue		15,809		3,492		-
	Metropolitan Park 4 & 5		10,873		6,289		3,008
	7 West 34th Street		7,243		-		-
	Wayne Towne Center		5,228		4,927		3,452
	Other		32,872		95,118		110,844
		$	214,615	$	469,417	$	156,873

- 33 -

 

CAPITAL EXPENDITURES,
TENANT IMPROVEMENTS AND LEASING COMMISSIONS
NEW YORK SEGMENT
(unaudited and in thousands)
		Six Months Ended		Year Ended
Capital expenditures (accrual basis):		June 30, 2014		2013		2012
Expenditures to maintain assets		$	20,896	$	34,553	$	27,434
Tenant improvements			89,525		87,275		71,572
Leasing commissions			44,171		39,348		27,573
Non-recurring capital expenditures			2,904		11,579		5,822
Total capital expenditures and leasing commissions (accrual basis)			157,496		172,755		132,401
Adjustments to reconcile to cash basis:
	Expenditures in the current year applicable to prior periods		26,568		56,345		41,975
	Expenditures to be made in future periods for the current period		(108,232)		(91,107)		(76,283)
Total capital expenditures and leasing commissions (cash basis)		$	75,832	$	137,993	$	98,093
Our share of square feet leased			1,874		2,145		1,939
Tenant improvements and leasing commissions per square foot per annum		$	6.50	$	5.89	$	5.48
Percentage of initial rent			9.1%		8.1%		8.8%
Development and redevelopment expenditures:
	Marriott Marquis Times Square - retail and signage	$	38,659	$	40,356	$	9,092
	330 West 34th Street		21,816		6,832		8
	608 Fifth Avenue		15,809		3,492		-
	7 West 34th Street		7,243		-		-
	Other		13,866		35,305		42,460
		$	97,393	$	85,985	$	51,560

- 34 -

 

CAPITAL EXPENDITURES,
TENANT IMPROVEMENTS AND LEASING COMMISSIONS
WASHINGTON, DC SEGMENT
(unaudited and in thousands)
		Six Months Ended		Year Ended
Capital expenditures (accrual basis):		June 30, 2014		2013		2012
Expenditures to maintain assets		$	4,761	$	22,165	$	20,582
Tenant improvements			11,180		39,156		50,384
Leasing commissions			2,806		9,551		13,151
Non-recurring capital expenditures			12,435		-		-
Total capital expenditures and leasing commissions (accrual basis)			31,182		70,872		84,117
Adjustments to reconcile to cash basis:
	Expenditures in the current year applicable to prior periods		30,957		26,075		24,370
	Expenditures to be made in future periods for the current period		(22,927)		(36,702)		(43,600)
Total capital expenditures and leasing commissions (cash basis)		$	39,212	$	60,245	$	64,887
Our share of square feet leased			678		1,392		1,901
Tenant improvements and leasing commissions per square foot per annum		$	5.23	$	4.75	$	4.86
Percentage of initial rent			13.0%		11.9%		12.0%
Development and redevelopment expenditures:
	Metropolitan Park 4 & 5	$	10,873	$	6,289	$	3,008
	Other		13,438		35,412		36,326
		$	24,311	$	41,701	$	39,334

- 35 -

 

CAPITAL EXPENDITURES,
TENANT IMPROVEMENTS AND LEASING COMMISSIONS
RETAIL PROPERTIES SEGMENT
(unaudited and in thousands)
		Six Months Ended		Year Ended
Capital expenditures (accrual basis):		June 30, 2014		2013		2012
Expenditures to maintain assets		$	1,490	$	5,664	$	4,676
Tenant improvements			1,126		12,431		9,052
Leasing commissions			419		2,113		2,368
Non-recurring capital expenditures			-		-		-
Total capital expenditures and leasing commissions (accrual basis)			3,035		20,208		16,096
Adjustments to reconcile to cash basis:
	Expenditures in the current year applicable to prior periods		3,148		5,562		10,353
	Expenditures to be made in future periods for the current period		(1,545)		(14,011)		(7,754)
Total capital expenditures and leasing commissions (cash basis)		$	4,638	$	11,759	$	18,695
Our share of square feet leased			536		1,988		1,377
Tenant improvements and leasing commissions per square foot per annum		$	0.49	$	1.33	$	1.04
Percentage of initial rent			2.4%		6.6%		5.2%
Development and redevelopment expenditures:
	Springfield Town Center	$	54,743	$	68,716	$	18,278
	Wayne Towne Center		5,228		4,927		3,452
	Other		3,370		20,283		31,816
		$	63,341	$	93,926	$	53,546

- 36 -

 

CAPITAL EXPENDITURES,
TENANT IMPROVEMENTS AND LEASING COMMISSIONS
OTHER
(unaudited and in thousands)
		Six Months Ended		Year Ended
Capital expenditures (accrual basis):		June 30, 2014		2013		2012
Expenditures to maintain assets		$	6,963	$	10,748	$	17,220
Tenant improvements			12,302		13,457		46,735
Leasing commissions			3,228		5,626		14,869
Non-recurring capital expenditures			2,422		520		1,080
Total capital expenditures and leasing commissions (accrual basis)			24,915		30,351		79,904
Adjustments to reconcile to cash basis:
	Expenditures in the current year applicable to prior periods		7,235		67,053		28,652
	Expenditures to be made in future periods for the current period		(10,932)		(8,247)		(43,107)
Total capital expenditures and leasing commissions (cash basis)		$	21,218	$	89,157	$	65,449
Development and redevelopment expenditures:
	220 Central Park South	$	27,372	$	243,687	$	12,191
	Other		2,198		4,118		242
		$	29,570	$	247,805	$	12,433

- 37 -

 

DEVELOPMENT COSTS AND CONSTRUCTION IN PROGRESS
(unaudited and in thousands, except square feet)
			Square Feet
					At June 30, 2014
	Development Projects				Total			Development Costs Expended		Land and Acquisition Costs
	New York:
		1535 Broadway - Marriott Marquis - Retail & Signage	103,000		$	338,738		$	98,738	$	240,000
		220 Central Park South - Residential Condominiums	472,000	(1)		531,455			79,565		451,890
		Other				111,727			111,727		-
	Total New York					981,920			290,030		691,890
	Washington, DC:
		Metropolitan Park 4 & 5 - Rental Residential / Retail	618,000			61,115			19,815		41,300
		Other				110,083			110,083		-
	Total Washington, DC					171,198			129,898		41,300
	Retail Properties:
		Springfield Town Center	690,000			377,247	(2)		137,247		240,000
		Other				18,073			18,073		-
	Total Retail Properties					395,320			155,320		240,000
	Other Projects					1,646			1,646		-
	Total Amount on the Balance Sheet				$	1,550,084		$	576,894	$	973,190
			Square Feet			Total
	Undeveloped Land
	Washington, DC:
	1900 Crystal Drive		712,000		$	34,299
	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				$	175,660
	(1)	Zoning square feet.
	(2)	Net of $20,000 non-cash impairment loss booked in the quarter ended March 31, 2014.

- 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:
Penn Plaza:
One Penn Plaza												Cisco, MWB Leasing, Parsons Brinkerhoff,
	(ground leased through 2098)											United Health Care, United States Customs Department,
		-Office	100.0%	95.8%	$	57.77	2,241,000	2,241,000	-			URS Corporation Group Consulting, Lion Resources
		-Retail	100.0%	98.8%		120.37	268,000	268,000	-			Bank of America, Kmart Corporation
			100.0%	96.2%		64.46	2,509,000	2,509,000	-	$	-
Two Penn Plaza												EMC, Forest Electric, Information Builders, Inc.,
		-Office	100.0%	98.6%		54.31	1,572,000	1,572,000	-			Madison Square Garden, McGraw-Hill Companies, Inc.
		-Retail	100.0%	38.2%		176.55	47,000	47,000	-			Chase Manhattan Bank
			100.0%	96.8%		57.86	1,619,000	1,619,000	-		423,949
Eleven Penn Plaza
		-Office	100.0%	99.5%		58.10	1,131,000	1,131,000	-			Macy's, Madison Square Garden, Rainbow Media Holdings
		-Retail	100.0%	74.4%		203.24	17,000	17,000	-			PNC Bank National Association
			100.0%	99.1%		60.24	1,148,000	1,148,000	-		450,000
100 West 33rd Street
		-Office	100.0%	99.6%		54.40	849,000	849,000	-		223,242	Draftfcb, Rocket Fuel
Manhattan Mall
		-Retail	100.0%	92.9%		119.50	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%		38.51	416,000	112,000	304,000
		-Retail	100.0%	100.0%		225.20	23,000	23,000	-			Express
			100.0%	100.0%		70.31	439,000	135,000	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		1,347,099

- 39 -

 

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%	$	55.80	(2)	1,344,000	1,344,000	-	$	350,000	United States Post Office, The Procter & Gamble Distributing LLC
150 East 58th Street													Castle Harlan, Tournesol Realty LLC. (Peter Marino),
		-Office	100.0%	92.8%		66.61		540,000	540,000	-			Various showroom tenants
		-Retail	100.0%	100.0%		171.09		2,000	2,000	-
			100.0%	92.9%		66.99		542,000	542,000	-		-
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%		87.54		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							1,922,000	1,922,000	-		350,000
Midtown West:
888 Seventh Avenue
	(ground leased through 2067)												Soros Fund, TPG-Axon Capital,
		-Office	100.0%	93.3%		86.41		862,000	862,000	-			Vornado Executive Headquarters
		-Retail	100.0%	100.0%		102.02		15,000	15,000	-			Redeye Grill L.P.
			100.0%	93.4%		86.67		877,000	877,000	-		318,554
1740 Broadway
		-Office	100.0%	100.0%		68.40		582,000	582,000	-			Davis & Gilbert, Limited Brands
		-Retail	100.0%	100.0%		105.82		19,000	19,000	-			Brasserie Cognac, Citibank
			100.0%	100.0%		69.59		601,000	601,000	-		-
57th Street - 5 buildings
		-Office	50.0%	96.4%		53.97		135,000	135,000	-			Various
		-Retail	50.0%	100.0%		117.12		53,000	26,000	27,000
			50.0%	97.4%		71.77		188,000	161,000	27,000		20,000
825 Seventh Avenue
		-Office	50.0%	100.0%		73.99		170,000	170,000	-		20,500	Young & Rubicam
		-Retail	100.0%	100.0%		238.97		4,000	4,000	-			Lindy's
				100.0%		77.78		174,000	174,000	-
	Total Midtown West							1,840,000	1,813,000	27,000		359,054
Park Avenue:
280 Park Avenue													Cohen & Steers Inc., Credit Suisse (USA) Inc.,
		-Office	49.5%	100.0%		94.53		1,223,000	705,000	518,000			Investcorp International Inc.
		-Retail	49.5%	100.0%		216.21		18,000	4,000	14,000			Scottrade Inc., Starbucks
			49.5%	100.0%		96.29		1,241,000	709,000	532,000		733,520
350 Park Avenue													Kissinger Associates Inc., Ziff Brothers Investment Inc.,
		-Office	100.0%	99.0%		89.65		553,000	553,000	-			MFA Financial Inc., M&T Bank
		-Retail	100.0%	100.0%		192.30		17,000	17,000	-			Fidelity Investment, AT&T Wireless, Valley National Bank
			100.0%	99.0%		92.71		570,000	570,000	-		297,727
	Total Park Avenue							1,811,000	1,279,000	532,000		1,031,247

- 40 -

 

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%	97.1%	$	70.06	909,000		909,000	-			Capital One, First Manhattan Consulting
		-Retail	100.0%	100.0%		90.30	26,000		26,000	-			Citibank
			100.0%	97.2%		70.62	935,000		935,000	-	$	-
330 Madison Avenue													GPFT Holdco LLC, HSBC Bank AFS, Jones Lang LaSalle Inc.,
		-Office	25.0%	98.6%		66.80	805,000		805,000	-			Wells Fargo
		-Retail	25.0%	100.0%		280.06	32,000		32,000	-			Ann Taylor Retail Inc., Citibank
			25.0%	98.7%		74.95	837,000		837,000	-		150,000
510 Fifth Avenue
		-Retail	100.0%	90.6%		135.50	64,000		64,000	-		30,470	Joe Fresh
	Total Grand Central						1,836,000		1,836,000	-		180,470
Madison/Fifth:
640 Fifth Avenue													Fidelity Investments, Janus Capital Group Inc.,
													GSL Enterprises Inc., Scout Capital Management,
		-Office	100.0%	95.1%		81.87	262,000		262,000	-			Legg Mason Investment Counsel
		-Retail	100.0%	100.0%		241.45	62,000		62,000	-			Citibank, Hennes & Mauritz
			100.0%	96.0%		112.41	324,000		324,000	-		-
666 Fifth Avenue													Citibank, Fulbright & Jaworski, Colliers International NY LLC,
		-Office (Office Condo)	49.5%	89.3%		73.41	1,372,000		1,372,000	-		1,196,201	Integrated Holding Group, Vinson & Elkins LLP
		-Retail (Office Condo)	49.5%	88.2%		170.53	46,000		46,000	-		-	HSBC Bank USA
		-Retail (Retail Condo)	100.0%	100.0%		359.47	114,000	(3)	114,000	-		390,000	Uniqlo, Hollister, Swatch
				90.1%		97.62	1,532,000		1,532,000	-		1,586,201
595 Madison Avenue													Beauvais Carpets, Levin Capital Strategies LP,
		-Office	100.0%	100.0%		71.41	291,000		291,000	-			Cosmetech Mably Int'l LLC.
		-Retail	100.0%	100.0%		598.19	30,000		30,000	-			Coach, Prada
			100.0%	100.0%		120.64	321,000		321,000	-		-
650 Madison Avenue
		-Office	20.1%	87.9%		101.37	524,000		524,000	-			Polo Ralph Lauren
		-Retail	20.1%	100.0%		265.22	71,000		71,000	-			Crate & Barrel
			20.1%	89.4%		120.92	595,000		595,000	-		800,000
689 Fifth Avenue
		-Office	100.0%	100.0%		68.29	82,000		82,000	-			Yamaha Artist Services Inc.
		-Retail	100.0%	100.0%		720.42	17,000		17,000	-			MAC Cosmetics, Massimo Dutti
			100.0%	100.0%		180.27	99,000		99,000	-		-
655 Fifth Avenue
		-Retail	92.5%	100.0%		187.76	57,000		57,000	-		-	Ferragamo
	Total Madison/Fifth						2,928,000		2,928,000	-		2,386,201

- 41 -

 

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%	$	65.60	981,000	981,000	-			AOL, J. Crew, Facebook, Structure Tone
		-Retail	100.0%	100.0%		49.46	166,000	166,000	-			Ann Taylor Retail Inc., Bank of America, Kmart Corporation
			100.0%	100.0%		63.26	1,147,000	1,147,000	-	$	353,000
One Park Avenue												Coty Inc., New York University,
		-Office	55.0%	96.5%		45.00	864,000	864,000	-			Public Service Mutual Insurance
		-Retail	55.0%	100.0%		64.41	79,000	79,000	-			Bank of Baroda, Citibank, Equinox,
												Men's Wearhouse
			55.0%	96.8%		46.62	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%		84.76	35,000	35,000	-		-	Equinox, Major League Baseball
	Total Midtown South						2,331,000	2,331,000	-		723,000
Rockefeller Center:
1290 Avenue of the Americas												AXA Equitable Life Insurance, Hachette Book Group Inc.,
												Bryan Cave LLP, Neuberger Berman (lease not commenced),
												Warner Music Group, Cushman & Wakefield, Fitzpatrick,
		-Office	70.0%	98.3%		74.13	2,040,000	2,040,000	-			Cella, Harper & Scinto, Columbia University, SSB Realty LLC
		-Retail	70.0%	100.0%		145.82	66,000	66,000	-			Duane Reade, JPMorgan Chase Bank, Sovereign Bank
			70.0%	98.4%		76.38	2,106,000	2,106,000	-		950,000
608 Fifth Avenue (ground leased through 2026)
		-Office	100.0%	88.1%		54.92	81,000	81,000	-
		-Retail	100.0%	100.0%		365.75	44,000	44,000	-			Topshop
			100.0%	92.3%		164.33	125,000	125,000	-		-
	Total Rockefeller Center						2,231,000	2,231,000	-		950,000
Wall Street/Downtown:
20 Broad Street (ground leased through 2081)
		-Office	100.0%	99.0%		57.99	472,000	472,000	-		-	New York Stock Exchange
40 Fulton Street
		-Office	100.0%	99.0%		36.14	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%		37.29	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%		203.02	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		-

- 42 -

 

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%	$	134.05	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%		93.13	49,000	49,000	-		-	Sigrid Olsen
148 Spring Street
		-Retail	100.0%	100.0%		104.46	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%		773.28	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%		21.28	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			97.0%	$	65.87	21,296,000	19,852,000	1,444,000	$	6,586,843
	Vornado's Ownership Interest			97.3%	$	64.51	17,809,000	16,627,000	1,182,000	$	4,708,719
New York Retail:
	Total			97.0%	$	166.45	2,495,000	2,351,000	144,000	$	820,228
	Vornado's Ownership Interest			96.9%	$	165.65	2,292,000	2,169,000	123,000	$	820,228

- 43 -

 

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%	$	96.45	885,000	885,000	-	$	300,000	Bloomberg
		-Retail	32.4%	100.0%		170.36	174,000	174,000	-		320,000	Hennes & Mauritz, The Home Depot, The Container Store
			32.4%	100.0%		107.62	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	-		268,043	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%		70.74	2,428,000	2,178,000	250,000		1,034,289
Hotel Pennsylvania:
	-Hotel (1,700 Keys)		100.0%	-		-	1,400,000	1,400,000	-		-
Residential:
50-70 W 93rd Street (327 units)			49.9%	96.0%		-	283,000	283,000	-		45,825
Independence Plaza, Tribeca (1,328 units)
		-Residential	50.1%	97.3%		-	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			97.0%			1,523,000	1,523,000	-		595,825
Total New York				97.2%	$	75.79	29,142,000	27,304,000	1,838,000	$	9,037,185
Vornado's Ownership Interest				97.3%	$	75.75	23,050,000	21,663,000	1,387,000	$	6,162,474
(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 $10.93 PSF.
(3)	75,000 square feet is leased from the office condo.
(4)	Leased by Alexander's through January 2037.

- 44 -

 

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%	86.4%	$	43.98	2,320,000	2,320,000	-	$	225,544	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%	73.7%		42.52	1,533,000	1,533,000	-		59,911	General Services Administration,
											SAIC, Inc., Boeing, L-3 Communications,
											The Int'l Justice Mission, Management Systems International
1550-1750 Crystal Drive /		100.0%	75.7%		40.95	1,486,000	1,486,000	-		41,616	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%	92.8%		39.41	869,000	506,000	363,000		-	General Services Administration,
	- 3 buildings										Lockheed Martin
2100 / 2200 Crystal Drive - 2 buildings		100.0%	100.0%		33.40	529,000	529,000	-		-	General Services Administration,
											Public Broadcasting Service
223 23rd Street / 2221 South Clark Street		100.0%	-		-	312,000	-	312,000		-	WeWork
	- 2 buildings
2001 Jefferson Davis Highway		100.0%	64.6%		36.01	162,000	162,000	-		-	Institute for the Psychology Sciences, VT Aepco, Inc.,
											National Crime Prevention
Crystal City Shops at 2100		100.0%	99.0%		22.82	80,000	80,000	-		-	Various
Crystal Drive Retail		100.0%	87.1%		46.55	57,000	57,000	-		-	Various
Total Crystal City		100.0%	82.3%		41.16	7,348,000	6,673,000	675,000		327,071
Central Business District:
Universal Buildings		100.0%	96.5%		44.46	685,000	685,000	-		-	Family Health International, WeWork
	1825-1875 Connecticut Avenue, NW
	- 2 buildings
Warner Building - 1299 Pennsylvania		55.0%	75.7%		68.79	615,000	615,000	-		292,700	Baker Botts LLP, General Electric, Cooley LLP,
	Avenue, NW										Facebook, Live Nation
2101 L Street, NW		100.0%	99.0%		64.74	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%		47.46	278,000	278,000	-		-	General Services Administration, UN Foundation, AOL
1150 17th Street, NW		100.0%	88.3%		45.63	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%		47.28	213,000	213,000	-		31,000	AFSCME, Verto Solutions
1730 M Street, NW		100.0%	81.7%		46.64	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%	$	41.32	91,000	91,000	-		$	-	Aptima, Inc., Nelnet Corporation
Waterfront Station	2.5%		-		-	1,058,000	-	1,058,000	*		-
1501 K Street, NW	5.0%		100.0%		68.47	380,000	380,000	-			-	Sidley Austin LLP, UBS
1399 New York Avenue, NW	100.0%		92.7%		74.62	129,000	129,000	-			-	Bloomberg
Total Central Business District			91.1%		54.56	4,503,000	3,445,000	1,058,000			632,303
Skyline Properties:
Skyline Place - 7 buildings	100.0%		48.4%		33.63	2,134,000	2,134,000	-			561,599	General Services Administration, SAIC, Inc., Analytic Services,
												Northrop Grumman, Axiom Resource Management,
												Booz Allen, Intellidyne, Inc.
One Skyline Tower	100.0%		100.0%		33.14	518,000	518,000	-			139,237	General Services Administration
Total Skyline Properties	100.0%		58.5%		33.46	2,652,000	2,652,000	-			700,836
Rosslyn / Ballston:
2200 / 2300 Clarendon Blvd	100.0%		94.7%		43.33	638,000	638,000	-			38,213	Arlington County, General Services Administration,
(Courthouse Plaza) - 2 buildings												AMC Theaters
(ground leased through 2062)
Rosslyn Plaza - 4 buildings	46.2%		74.4%		38.62	735,000	385,000	350,000			33,487	General Services Administration, Corporate Executive Board
Total Rosslyn / Ballston			90.3%		42.45	1,373,000	1,023,000	350,000			71,700
Reston:
Commerce Executive - 3 buildings	100.0%	`	92.2%		31.73	419,000	400,000	19,000	*		-	L-3 Communications, Allworld Language Consultants,
												BT North America, Applied Information Sciences, Clarabridge Inc.
Rockville/Bethesda:
Democracy Plaza One	100.0%		90.8%		31.98	216,000	216,000	-			-	National Institutes of Health
(ground leased through 2084)
Tysons Corner:
Fairfax Square - 3 buildings	20.0%		88.5%		40.33	559,000	559,000	-			68,741	Dean & Company, Womble Carlyle
Pentagon City:
Fashion Centre Mall	7.5%		98.0%		42.63	822,000	822,000	-			410,000	Macy's, Nordstrom
Washington Tower	7.5%		100.0%		41.68	170,000	170,000	-			40,000	The Rand Corporation
Total Pentagon City			98.4%		42.46	992,000	992,000	-			450,000
Total Washington, DC office properties			82.0%	$	43.55	18,062,000	15,960,000	2,102,000		$	2,250,651
Vornado's Ownership Interest			80.5%	$	42.53	14,536,000	13,652,000	884,000		$	1,617,138

- 46 -

 

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%	97.8%	$	-	1,802,000	1,802,000	-		$	259,546
West End 25 (283 units)	100.0%	98.9%		-	273,000	273,000	-			101,671
220 20th Street (265 units)	100.0%	98.9%		-	269,000	269,000	-			72,025
Rosslyn Plaza - 2 buildings (196 units)	43.7%	96.4%		-	253,000	253,000	-			-
Total Residential		98.0%			2,597,000	2,597,000	-			433,242
Other:
Crystal City Hotel	100.0%	100.0%		-	266,000	266,000	-			-
Met Park / Warehouses - 1 building	100.0%	100.0%		-	231,000	106,000	125,000	*		-
Other - 3 buildings	100.0%	100.0%		-	11,000	9,000	2,000	*		-
Total Other		100.0%			508,000	381,000	127,000			-
Total Washington, DC		84.5%	$	43.55	21,167,000	18,938,000	2,229,000		$	2,683,893
Vornado's Ownership Interest		83.5%	$	42.53	17,499,000	16,488,000	1,011,000		$	2,050,380
* 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.

- 47 -

 

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%	$	39.39	663,000	33,000	287,000	343,000		$	-		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, PetSmart, Staples
Totowa	100.0%	100.0%		19.28	271,000	177,000	94,000	-			24,449	(3)	The Home Depot, Bed Bath & Beyond, Marshalls,
													buy buy Baby, Staples
Bricktown	100.0%	94.7%		18.50	279,000	276,000	3,000	-			31,535	(3)	Kohl's , ShopRite, Marshalls
Union (Route 22 and Morris Avenue)	100.0%	99.4%		25.36	276,000	113,000	163,000	-			31,914	(3)	Lowe's, Toys "R" Us, Office Depot
Hackensack	100.0%	74.5%		23.42	275,000	269,000	6,000	-			40,028	(3)	The Home Depot, Staples, Petco
Bergen Town Center - East, Paramus	100.0%	93.6%		36.42	211,000	44,000	167,000	-			-		Lowe's, REI
East Hanover (200 - 240 Route 10 West)	100.0%	85.7%		19.40	343,000	337,000	6,000	-			37,756	(3)	The Home Depot, Dick's Sporting Goods, Marshalls
Cherry Hill	100.0%	96.6%		16.13	261,000	68,000	193,000	-			13,685	(3)	Wal-Mart, Toys "R" Us
Jersey City	100.0%	100.0%		21.79	236,000	66,000	170,000	-			20,014	(3)	Lowe's, P.C. Richard & Son
East Brunswick	100.0%	100.0%		16.67	427,000	254,000	173,000	-			36,187	(3)	Lowe's, Kohl's, Dick's Sporting Goods, P.C. Richard & Son,
													T.J. Maxx, LA Fitness (lease not commenced)
Union (2445 Springfield Avenue)	100.0%	100.0%		17.85	232,000	232,000	-	-			28,128	(3)	The Home Depot
Middletown	100.0%	94.9%		14.75	231,000	179,000	52,000	-			17,147	(3)	Kohl's, Stop & Shop
Woodbridge	100.0%	84.1%		22.42	226,000	86,000	140,000	-			20,393	(3)	Wal-Mart
North Plainfield	100.0%	85.0%		17.75	212,000	60,000	152,000	-			-		Costco, The Tile Shop
(ground leased through 2060)
Marlton	100.0%	100.0%		13.94	213,000	209,000	4,000	-			17,039	(3)	Kohl's (4), ShopRite, PetSmart
Manalapan	100.0%	99.3%		16.58	208,000	206,000	2,000	-			20,771	(3)	Best Buy, Bed Bath & Beyond, Babies "R" Us,
													Modell's Sporting Goods, PetSmart
East Rutherford	100.0%	100.0%		34.34	197,000	42,000	155,000	-			13,415	(3)	Lowe's
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	-			21,096	(3)	Kohl's, ShopRite (7)
Dover	100.0%	94.0%		11.82	173,000	167,000	6,000	-			12,982	(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	-	-			11,197	(3)	National Wholesale Liquidators
Watchung	100.0%	96.6%		25.40	170,000	54,000	116,000	-			14,875	(3)	BJ's Wholesale Club
Lawnside	100.0%	100.0%		14.11	145,000	142,000	3,000	-			10,548	(3)	The Home Depot, PetSmart

- 48 -

 

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 (7)
Kearny	100.0%	43.5%		16.31	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%		19.82	85,000	85,000	-		-		-		Blink Fitness, Aldi
Carlstadt (ground leased through 2050)	100.0%	100.0%		21.63	78,000	78,000	-		-		-		Stop & Shop
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		-		5,031	(3)	Food Basics
South Plainfield (ground leased through 2039)	100.0%	85.9%		22.04	56,000	56,000	-		-		5,058	(3)	Staples, Party City
Englewood	100.0%	73.6%		25.14	41,000	41,000	-		-		11,673		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	-		-		4,490	(3)	REI
Montclair	100.0%	100.0%		23.34	18,000	18,000	-		-		2,596	(3)	Whole Foods Market
Total New Jersey					7,334,000	4,440,000	2,327,000		567,000		527,007
New York:
Poughkeepsie	100.0%	86.2%		9.07	516,000	516,000	-		-		-		Kmart, Burlington Coat Factory, ShopRite, Hobby Lobby,
													Christmas Tree Shops, Bob's Discount Furniture
Bronx (Bruckner Boulevard)	100.0%	90.5%		21.05	501,000	387,000	114,000		-		-		Kmart, Toys "R" Us, Marshalls, Old Navy, Gap
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), Home Goods
Huntington	100.0%	97.9%		14.80	328,000	209,000	119,000	(5)	-		16,444	(3)	The Home Depot (5), Kmart, Marshalls, Old Navy, Petco
Rochester	100.0%	100.0%		-	205,000	-	205,000		-		4,327	(3)	Wal-Mart
Mt. Kisco	100.0%	100.0%		22.35	189,000	72,000	117,000		-		27,973		Target, A&P
Freeport (437 East Sunrise Highway)	100.0%	100.0%		18.61	173,000	173,000	-		-		21,096	(3)	The Home Depot, Staples
Rochester (Henrietta)	100.0%	96.2%		3.81	165,000	158,000	7,000		-		-		Kohl's
(ground leased through 2056)
Staten Island	100.0%	88.2%		23.77	165,000	165,000	-		-		17,000		Western Beef, Planet Fitness
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

- 49 -

 

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%	80.1%	$	17.23	79,000		79,000	-		-		$	-		Best Market, Rite Aid
Bronx (1750-1780 Gun Hill Road)	100.0%	90.7%		32.27	77,000		77,000	-		-			-		Aldi, Planet Fitness
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, Ace Hardware
(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					3,259,000		2,628,000	631,000		-			86,840
Pennsylvania:
Allentown	100.0%	90.3%		15.23	554,000	(5)	270,000	284,000	(5)	-			29,588	(3)	Wal-Mart (5), Burlington Coat Factory, Giant Food,
															T.J. Maxx, Dick's Sporting Goods, Petco
Wilkes-Barre (461 - 499 Mundy Street)	100.0%	100.0%		13.12	329,000	(5)	204,000	125,000	(5)	-			19,736		Target (5), Bob's Discount Furniture, Babies "R" Us,
															Ross Dress for Less, Marshalls, Petco
Lancaster	100.0%	82.1%		15.33	228,000		58,000	170,000		-			5,328	(3)	Lowe's, Sleepy's
Bensalem	100.0%	98.9%		11.54	185,000		177,000	8,000		-			14,686	(3)	Kohl's, Ross Dress for Less, Staples, Petco
Broomall	100.0%	100.0%		11.09	169,000		147,000	22,000		-			10,548	(3)	Giant Food (4), Planet Fitness, A.C. Moore, PetSmart
Bethlehem	100.0%	95.3%		7.30	167,000		164,000	3,000		-			5,517	(3)	Giant Food, Petco
York	100.0%	100.0%		9.49	111,000		111,000	-		-			5,139	(3)	Ashley Furniture, Tractor Supply Company, Petco, Aldi
Glenolden	100.0%	100.0%		25.84	102,000		10,000	92,000		-			6,761	(3)	Wal-Mart
Wilkes-Barre (645 Kidder Street)	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					2,043,000		1,299,000	704,000		40,000			97,303

- 50 -

 

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	-		8,195	(3)	Wal-Mart
Springfield	100.0%	97.8%		16.39	182,000	33,000	149,000	-		5,653	(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, Modell's Sporting Goods
(ground and building leased through 2033)
Total Massachusetts					537,000	164,000	373,000	-		13,848
Maryland:
Baltimore (Towson)	100.0%	100.0%		16.28	155,000	155,000	-	-		15,416	(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%		10.56	121,000	65,000	56,000	-		-		Gavigan's Home Furnishings, Pep Boys
Rockville	100.0%	98.1%		23.80	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	-		15,416

- 51 -

 

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	-	$	11,089	(3)	Wal-Mart, Staples
Waterbury	100.0%	68.8%		16.45	148,000	143,000	5,000	-		13,793	(3)	ShopRite
Total Connecticut					336,000	172,000	164,000	-		24,882
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%	84.4%		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 (7)
(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 2016)
Tennessee:
Antioch	100.0%	100.0%		7.66	45,000	45,000	-	-		-		Best Buy (7)

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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		93.7%	$	16.38	15,172,000	10,273,000	4,292,000	607,000	$	765,296
Vornado's Ownership Interest		93.7%	$	16.37	14,745,000	10,273,000	3,865,000	607,000	$	765,296

REGIONAL MALLS:
Monmouth Mall, Eatontown, NJ	50.0%	92.5%	$	35.29	(6)	1,463,000	(5)	851,000	612,000	(5)	-	$	168,117	Macy's (5), JCPenney (5), Lord & Taylor, Boscov's,
														Loews Theatre, Barnes & Noble, Forever 21
Springfield Town Center, Springfield, VA	100.0%	100.0%		16.48	(6)	1,374,000	(5)	291,000	390,000	(5)	693,000		-	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%	99.4%		43.39	(6)	952,000		921,000	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%		36.22	(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%	91.9%		58.09	(6)	494,000	(5)	355,000	139,000	(5)	-		-	Kmart, Sears (5)
Total Regional Malls		94.9%	$	41.40		4,825,000		2,960,000	1,172,000		693,000	$	588,117
Vornado's Ownership Interest		95.4%	$	42.82		3,337,000		2,534,000	110,000		693,000	$	504,059

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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		93.9%		19,997,000	13,233,000	5,464,000	1,300,000	$	1,353,413
Vornado's Ownership Interest		94.0%		18,082,000	12,807,000	3,975,000	1,300,000	$	1,269,355
* 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 $613,914 as of June 30, 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.
(7) The tenant has ceased operations at these locations but continues to pay rent.

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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%		97.0%		$		60.07	1,502,000	1,502,000	-	$	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 Financial, Microsoft Corporation, Fenwick & West LLP
315 Montgomery Street	70.0%		94.0%				45.55	231,000	231,000	-		-		Bank of America, Regus (lease not commenced)
345 Montgomery Street	70.0%		100.0%				96.90	64,000	64,000	-		-		Bank of America
Total 555 California Street			96.8%		$		59.51	1,797,000	1,797,000	-	$	600,000
Vornado's Ownership Interest			96.8%		$		59.51	1,258,000	1,258,000	-	$	420,000

The MART:
Illinois:
The Mart, Chicago		100.0%	94.4%	$	34.80	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, The Mart Headquarters,
											Chicago School of Professional Psychology
Other		50.0%	100.0%		31.73	19,000	19,000	-		23,046
	Total Illinois		94.4%		34.78	3,578,000	3,578,000	-		573,046
Total The Mart			94.4%	$	34.78	3,578,000	3,578,000	-	$	573,046
Vornado's Ownership Interest			94.4%	$	34.78	3,569,000	3,569,000	-	$	561,523

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:
Lucida, 86th Street and Lexington Avenue
(ground leased through 2082)										Barnes & Noble, Hennes & Mauritz,
- Retail	100.0%	100.0%	$	133.91	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	-	$	146,000
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%		347.19	14,000	14,000	-			Hershey
- Office	38.2%	100.0%		37.55	220,000	220,000	-			American Management Association
	38.2%	100.0%		56.08	234,000	234,000	-		251,250
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%		36.28	313,000	280,000	33,000		97,500	J. Crew, TJ Maxx, Forever 21
Santa Monica, CA:
										Premier Office Centers LLC, Diversified Mercury Comm,
520 Broadway	100.0%	81.6%		50.62	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	-		60,094	Syska Hennessy Group, X Prize Foundation
Miami, FL:
1100 Lincoln Road	100.0%	99.6%		104.22	127,000	127,000	-		66,000	Regal Cinema, Anthropologie, Banana Republic
Total Real Estate Fund	75.5%	85.7%			1,193,000	1,160,000	33,000	$	670,844
Vornado's Ownership Interest	18.9%	85.7%			223,000	219,000	4,000	$	116,705
(1) Weighted Average Annual Rent PSF excludes ground rent, storage rent and garages.

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