1000 - CONSOLIDATED BALANCE SHE
1000 - CONSOLIDATED BALANCE SHEETS (USD $) | ||
In Thousands | Jun. 30, 2009
| Dec. 31, 2008
|
Real estate, at cost: | ||
Land | $4,590,824 | $4,517,558 |
Buildings and improvements | 12,415,435 | 12,154,857 |
Development costs and construction in progress | 995,268 | 1,088,356 |
Leasehold improvements and equipment | 121,952 | 118,603 |
Total | 18,123,479 | 17,879,374 |
Less accumulated depreciation and amortization | (2,327,154) | (2,168,997) |
Real estate, net | 15,796,325 | 15,710,377 |
Cash and cash equivalents | 2,068,498 | 1,526,853 |
Restricted cash | 307,984 | 375,888 |
Marketable securities | 326,671 | 334,322 |
Accounts receivable, net of allowance for doubtful accounts of $46,856 and $32,834 | 157,054 | 201,566 |
Investments in partially owned entities, including Alexander's of $168,860 and $137,305 | 790,352 | 790,154 |
Investment in Toys R Us | 374,534 | 293,096 |
Mezzanine loans receivable, net of a $122,738 allowance in 2009 | 291,270 | 472,539 |
Receivable arising from the straight-lining of rents, net of allowance of $5,905 and $5,773 | 644,696 | 592,903 |
Deferred leasing and financing costs, net of accumulated amortization of $179,646 and $168,714 | 306,188 | 306,847 |
Assets related to discontinued operations | 108,292 | 108,292 |
Due from officers | 13,151 | 13,185 |
Other assets | 646,842 | 692,026 |
Total Assets | 21,831,857 | 21,418,048 |
LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND SHAREHOLDERS' EQUITY | ||
Notes and mortgages payable | 8,833,435 | 8,835,387 |
Convertible senior debentures | 2,059,397 | 2,221,743 |
Senior unsecured notes | 363,358 | 617,816 |
Exchangeable senior debentures | 481,314 | 478,256 |
Revolving credit facility debt | 648,250 | 358,468 |
Accounts payable and accrued expenses | 485,706 | 515,607 |
Deferred credit | 724,193 | 764,774 |
Deferred compensation plan | 70,391 | 69,945 |
Deferred tax liabilities | 19,876 | 19,895 |
Other liabilities | 87,663 | 143,527 |
Total liabilities | 13,773,583 | 14,025,418 |
Redeemable noncontrolling interests: | ||
Total redeemable noncontrolling interests | 936,099 | 1,177,978 |
Shareholders' equity | ||
Preferred shares of beneficial interest: no par value per share; authorized 110,000,000 shares; issued and outstanding 33,952,324 and 33,954,124 shares | 823,718 | 823,807 |
Common shares of beneficial interest: $.04 par value per share; authorized, 250,000,000 shares; issued and outstanding 178,561,963 and 155,285,903 shares | 7,113 | 6,195 |
Additional capital | 7,210,977 | 6,025,976 |
Earnings less than distributions | (1,288,909) | (1,047,340) |
Accumulated other comprehensive loss | (35,851) | (6,899) |
Total Vornado shareholders' equity | 6,717,048 | 5,801,739 |
Noncontrolling interests in consolidated subsidiaries | 405,127 | 412,913 |
Total equity | 7,122,175 | 6,214,652 |
Liabilities and Stockholders' Equity | 21,831,857 | 21,418,048 |
Class A Units | ||
Redeemable noncontrolling interests: | ||
Total redeemable noncontrolling interests | 640,861 | 882,740 |
Series D cumulative redeemable preferred units | ||
Redeemable noncontrolling interests: | ||
Total redeemable noncontrolling interests | 280,000 | 280,000 |
Series B convertible preferred units | ||
Redeemable noncontrolling interests: | ||
Total redeemable noncontrolling interests | $15,238 | $15,238 |
1100 - Parenthetical Data For C
1100 - Parenthetical Data For Consolidated Balance Sheets (USD $) | ||
In Thousands, except Share data | Jun. 30, 2009
| Dec. 31, 2008
|
ASSETS | ||
Accounts receivable, allowance for doubtful accounts | $46,856 | $32,834 |
Investments in partially owned entities, Alexander's | 168,860 | 137,305 |
Mezzanine Loans receivable, allowance in 2009 | 122,738 | 0 |
Receivable arising from the straight-lining of rents, allowance | 5,905 | 5,773 |
Deferred leasing and financing costs, accumulated amortization | $179,646 | $168,714 |
Shareholders' equity | ||
Preferred shares of beneficial interest: authorized shares | 110,000,000 | 110,000,000 |
Preferred shares of beneficial interest: issued shares | 33,952,324 | 33,954,124 |
Preferred shares of beneficial interest: outstanding shares | 33,952,324 | 33,954,124 |
Common shares of beneficial interest: par value per share | 0.04 | 0.04 |
Common shares of beneficial interest: authorized shares | 250,000,000 | 250,000,000 |
Common shares of beneficial interest: issued shares | 178,561,963 | 155,285,903 |
Common shares of beneficial interest: outstanding shares | 178,561,963 | 155,285,903 |
Class A Units | ||
Shareholders' equity | ||
Redeemable noncontrolling interest units outstanding | 14,231,867 | 14,627,005 |
Series D cumulative redeemable preferred units | ||
Shareholders' equity | ||
Redeemable noncontrolling interest units outstanding | 11,200,000 | 11,200,000 |
Series B convertible preferred units | ||
Shareholders' equity | ||
Redeemable noncontrolling interest units outstanding | 444,559 | 444,559 |
2000 - CONSOLIDATED STATEMENTS
2000 - CONSOLIDATED STATEMENTS OF INCOME (USD $) | ||||
In Thousands, except Per Share data | 3 Months Ended
Jun. 30, 2009 | 3 Months Ended
Jun. 30, 2008 | 6 Months Ended
Jun. 30, 2009 | 6 Months Ended
Jun. 30, 2008 |
REVENUES: | ||||
Property rentals | $559,010 | $558,855 | $1,112,140 | $1,092,289 |
Tenant expense reimbursements | 83,476 | 84,898 | 181,610 | 172,058 |
Fee and other income | 35,899 | 30,612 | 66,649 | 59,300 |
Total revenues | 678,385 | 674,365 | 1,360,399 | 1,323,647 |
EXPENSES: | ||||
Operating | 270,297 | 256,358 | 549,673 | 517,609 |
Depreciation and amortization | 137,317 | 130,948 | 269,436 | 261,558 |
General and administrative | 49,632 | 50,285 | 128,701 | 99,670 |
Costs of acquisitions not consummated | 0 | 726 | 0 | 3,009 |
Total expenses | 457,246 | 438,317 | 947,810 | 881,846 |
Operating income | 221,139 | 236,048 | 412,589 | 441,801 |
Income applicable to Alexander's | 6,614 | 15,351 | 24,747 | 23,280 |
(Loss) income applicable to Toys R Us | (327) | (30,711) | 96,820 | 49,651 |
(Loss) income from partially owned entities | (22,797) | 4,285 | (30,340) | (26,068) |
Interest and other investment (loss) income, net | (97,706) | 23,793 | (83,647) | 37,897 |
Interest and debt expense (including amortization of deferred financing costs of $4,313 and $4,654 in each three-month period, respectively, and $8,372 and $8,897 in each six-month period, respectively) | (159,525) | (159,759) | (317,196) | (317,216) |
Net gains on early extinguishment of debt | 17,684 | 0 | 23,589 | 0 |
Net gains on disposition of wholly owned and partially owned assets other than depreciable real estate | 0 | 3,386 | 0 | 3,386 |
(Loss) income before income taxes | (34,918) | 92,393 | 126,562 | 212,731 |
Income tax (expense) benefit | (5,457) | (4,915) | (10,506) | 212,414 |
(Loss) income from continuing operations | (40,375) | 87,478 | 116,056 | 425,145 |
Income from discontinued operations | 0 | 58,339 | 0 | 170,420 |
Net (loss) income | (40,375) | 145,817 | 116,056 | 595,565 |
Net loss (income) attributable to noncontrolling interests, including unit distributions | 2,740 | (14,685) | (13,581) | (60,595) |
Net (loss) income attributable to Vornado | (37,635) | 131,132 | 102,475 | 534,970 |
Preferred share dividends | (14,269) | (14,274) | (28,538) | (28,549) |
NET (LOSS) INCOME attributable to common shareholders | ($51,904) | $116,858 | $73,937 | $506,421 |
(LOSS) INCOME PER COMMON SHARE - BASIC | ||||
(Loss) income from continuing operations, net | -0.3 | 0.41 | 0.44 | 2.23 |
Income from discontinued operations, net | $0 | 0.33 | $0 | 0.97 |
Net (loss) income per common share | -0.3 | 0.74 | 0.44 | 3.2 |
(LOSS) INCOME PER COMMON SHARE - DILUTED | ||||
(Loss) income from continuing operations, net | -0.3 | 0.4 | 0.44 | 2.17 |
Income from discontinued operations, net | $0 | 0.32 | $0 | 0.91 |
Net (loss) income per common share | -0.3 | 0.72 | 0.44 | 3.08 |
DIVIDENDS PER COMMON SHARE | 0.95 | 0.9 | 1.9 | 1.8 |
2100 - Parenthetical Data For C
2100 - Parenthetical Data For Consolidated Statements Of Income (USD $) | ||||
In Thousands | 3 Months Ended
Jun. 30, 2009 | 3 Months Ended
Jun. 30, 2008 | 6 Months Ended
Jun. 30, 2009 | 6 Months Ended
Jun. 30, 2008 |
Parenthetical Data For Consolidated Statements Of Income | ||||
Interest and debt expense amortization of deferred financing costs | $4,313 | $4,654 | $8,372 | $8,897 |
3000 - CONSOLIDATED STATEMENTS
3000 - CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (USD $) | |||
In Thousands | 6 Months Ended
Jun. 30, 2009 | 6 Months Ended
Jun. 30, 2008 | Dec. 31, 2007
|
Balance (beginning) | $5,834,397 | ||
Cumulative effect of change in accounting principle | 176,843 | ||
Balance | 6,214,652 | 6,011,240 | |
Net income (loss) | 98,775 | 529,863 | |
Dividends paid on common shares | (126,173) | (276,478) | |
Dividends paid on preferred shares | (28,540) | (28,550) | |
Proceeds from the issuance of common shares | 710,226 | ||
Conversion of Series A preferred shares to common shares | 0 | 0 | |
Deferred compensation shares and options | 9,969 | 5,678 | |
Common shares issued: | |||
Under employee share option plan | 183 | 10,984 | |
Upon redemption of Class A Operating Partnership Units, at redemption value | 49,990 | 44,412 | |
In connection with dividend reinvestment plan | 1,171 | ||
Sale of securities available for sale | (1,025) | ||
Change in unrealized net loss on securities available for sale | (12,213) | (33,776) | |
Our share of partially owned entities' OCI adjustments | (16,556) | ||
Voluntary surrender of equity awards on March 31, 2009 | 32,588 | ||
Adjustments to redeemable Class A Operating Partnership Units | 194,183 | 26,824 | |
Other | (4,909) | (25,152) | |
Balance | 7,122,175 | 6,265,191 | 6,011,240 |
Preferred Shares | |||
Balance (beginning) | 825,095 | ||
Cumulative effect of change in accounting principle | 0 | ||
Balance | 823,807 | 825,095 | |
Net income (loss) | 0 | 0 | |
Dividends paid on common shares | 0 | 0 | |
Dividends paid on preferred shares | 0 | 0 | |
Proceeds from the issuance of common shares | 0 | ||
Conversion of Series A preferred shares to common shares | (89) | (1,082) | |
Deferred compensation shares and options | 0 | 0 | |
Common shares issued: | |||
Under employee share option plan | 0 | 0 | |
Upon redemption of Class A Operating Partnership Units, at redemption value | 0 | 0 | |
In connection with dividend reinvestment plan | 0 | ||
Sale of securities available for sale | 0 | ||
Change in unrealized net loss on securities available for sale | 0 | 0 | |
Our share of partially owned entities' OCI adjustments | 0 | ||
Voluntary surrender of equity awards on March 31, 2009 | 0 | ||
Adjustments to redeemable Class A Operating Partnership Units | 0 | 0 | |
Other | 0 | 0 | |
Balance | 823,718 | 824,013 | 825,095 |
Common Shares | |||
Balance (beginning) | 6,140 | ||
Cumulative effect of change in accounting principle | 0 | ||
Balance | 6,195 | 6,140 | |
Net income (loss) | 0 | 0 | |
Dividends paid on common shares | 194 | 0 | |
Dividends paid on preferred shares | 0 | 0 | |
Proceeds from the issuance of common shares | 690 | ||
Conversion of Series A preferred shares to common shares | 0 | 2 | |
Deferred compensation shares and options | 2 | 43 | |
Common shares issued: | |||
Under employee share option plan | (14) | 11 | |
Upon redemption of Class A Operating Partnership Units, at redemption value | 46 | 20 | |
In connection with dividend reinvestment plan | 0 | ||
Sale of securities available for sale | 0 | ||
Change in unrealized net loss on securities available for sale | 0 | 0 | |
Our share of partially owned entities' OCI adjustments | 0 | ||
Voluntary surrender of equity awards on March 31, 2009 | 0 | ||
Adjustments to redeemable Class A Operating Partnership Units | 0 | 0 | |
Other | 0 | 0 | |
Balance | 7,113 | 6,216 | 6,140 |
Additional Capital | |||
Balance (beginning) | 5,278,717 | ||
Cumulative effect of change in accounting principle | 212,395 | ||
Balance | 6,025,976 | 5,491,112 | |
Net income (loss) | 0 | 0 | |
Dividends paid on common shares | 188,792 | 0 | |
Dividends paid on preferred shares | 0 | 0 | |
Proceeds from the issuance of common shares | 709,536 | ||
Conversion of Series A preferred shares to common shares | 89 | 1,080 | |
Deferred compensation shares and options | 9,967 | 5,635 | |
Common shares issued: | |||
Under employee share option plan | 548 | 10,973 | |
Upon redemption of Class A Operating Partnership Units, at redemption value | 49,944 | 44,392 | |
In connection with dividend reinvestment plan | 1,171 | ||
Sale of securities available for sale | 0 | ||
Change in unrealized net loss on securities available for sale | 0 | 0 | |
Our share of partially owned entities' OCI adjustments | 0 | ||
Voluntary surrender of equity awards on March 31, 2009 | 32,588 | ||
Adjustments to redeemable Class A Operating Partnership Units | 194,183 | 26,824 | |
Other | (646) | (1,849) | |
Balance | 7,210,977 | 5,579,338 | 5,491,112 |
Earnings Less Than Distributions | |||
Balance (beginning) | (721,625) | ||
Cumulative effect of change in accounting principle | (35,552) | ||
Balance | (1,047,340) | (757,177) | |
Net income (loss) | 102,475 | 534,970 | |
Dividends paid on common shares | (315,159) | (276,478) | |
Dividends paid on preferred shares | (28,540) | (28,550) | |
Proceeds from the issuance of common shares | 0 | ||
Conversion of Series A preferred shares to common shares | 0 | 0 | |
Deferred compensation shares and options | 0 | 0 | |
Common shares issued: | |||
Under employee share option plan | (351) | 0 | |
Upon redemption of Class A Operating Partnership Units, at redemption value | 0 | 0 | |
In connection with dividend reinvestment plan | 0 | ||
Sale of securities available for sale | 0 | ||
Change in unrealized net loss on securities available for sale | 0 | 0 | |
Our share of partially owned entities' OCI adjustments | 0 | ||
Voluntary surrender of equity awards on March 31, 2009 | 0 | ||
Adjustments to redeemable Class A Operating Partnership Units | 0 | 0 | |
Other | 6 | 0 | |
Balance | (1,288,909) | (527,235) | (757,177) |
Accumulated Other Comprehensive Income (loss) | |||
Balance (beginning) | 29,772 | ||
Cumulative effect of change in accounting principle | 0 | ||
Balance | (6,899) | 29,772 | |
Net income (loss) | 0 | 0 | |
Dividends paid on common shares | 0 | 0 | |
Dividends paid on preferred shares | 0 | 0 | |
Proceeds from the issuance of common shares | 0 | ||
Conversion of Series A preferred shares to common shares | 0 | 0 | |
Deferred compensation shares and options | 0 | 0 | |
Common shares issued: | |||
Under employee share option plan | 0 | 0 | |
Upon redemption of Class A Operating Partnership Units, at redemption value | 0 | 0 | |
In connection with dividend reinvestment plan | 0 | ||
Sale of securities available for sale | (1,025) | ||
Change in unrealized net loss on securities available for sale | (12,213) | (33,776) | |
Our share of partially owned entities' OCI adjustments | (16,556) | ||
Voluntary surrender of equity awards on March 31, 2009 | 0 | ||
Adjustments to redeemable Class A Operating Partnership Units | 0 | 0 | |
Other | (183) | (23,303) | |
Balance | (35,851) | (28,332) | 29,772 |
Non-controlling Interests | |||
Balance (beginning) | 416,298 | ||
Cumulative effect of change in accounting principle | 0 | ||
Balance | 412,913 | 416,298 | |
Net income (loss) | (3,700) | (5,107) | |
Dividends paid on common shares | 0 | 0 | |
Dividends paid on preferred shares | 0 | 0 | |
Proceeds from the issuance of common shares | 0 | ||
Conversion of Series A preferred shares to common shares | 0 | 0 | |
Deferred compensation shares and options | 0 | 0 | |
Common shares issued: | |||
Under employee share option plan | 0 | 0 | |
Upon redemption of Class A Operating Partnership Units, at redemption value | 0 | 0 | |
In connection with dividend reinvestment plan | 0 | ||
Sale of securities available for sale | 0 | ||
Change in unrealized net loss on securities available for sale | 0 | 0 | |
Our share of partially owned entities' OCI adjustments | 0 | ||
Voluntary surrender of equity awards on March 31, 2009 | 0 | ||
Adjustments to redeemable Class A Operating Partnership Units | 0 | 0 | |
Other | (4,086) | 0 | |
Balance | $405,127 | $411,191 | $416,298 |
4000 - CONSOLIDATED STATEMENTS
4000 - CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | ||
In Thousands | 6 Months Ended
Jun. 30, 2009 | 6 Months Ended
Jun. 30, 2008 |
Cash Flows from Operating Activities: | ||
Net income | $116,056 | $595,565 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization (including amortization of debt issuance costs) | 277,806 | 291,689 |
Mezzanine loans loss accrual | 122,738 | 0 |
Equity in income of partially owned entities, including Alexander's and Toys | (91,227) | (81,431) |
Straight-lining of rental income | (53,002) | (40,710) |
Amortization of below market leases, net | (37,542) | (49,129) |
Write-off of unamortized costs from the voluntary surrender of equity awards | 32,588 | 0 |
Net gains on early extinguishment of debt | (23,589) | 0 |
Distributions of income from partially owned entities | 15,131 | 20,051 |
Reversal of H Street deferred tax liability | 0 | (222,174) |
Net gain on sale of Americold | 0 | (112,690) |
Write-off of real estate joint ventures' development costs | 0 | 34,200 |
Net loss on derivative positions | 0 | 21,830 |
Impairment loss - marketable securities | 0 | 9,073 |
Net gains on sale of real estate | 0 | (57,411) |
Net gains on disposition of wholly owned and partially owned assets other than depreciable real estate | 0 | (3,386) |
Costs of acquisitions not consummated | 0 | 3,009 |
Other non-cash adjustments | 25,069 | 31,140 |
Changes in operating assets and liabilities: | ||
Accounts receivable, net | 15,654 | 7,029 |
Other assets | (17,773) | (17,542) |
Accounts payable and accrued expenses | 7,715 | 10,304 |
Other liabilities | (10,185) | 14,099 |
Net cash provided by operating activities | 379,439 | 453,516 |
Cash Flows from Investing Activities: | ||
Development costs and construction in progress | (267,124) | (253,159) |
Additions to real estate | (84,750) | (97,804) |
Restricted cash | 60,786 | (16,340) |
Investments in partially owned entities | (25,712) | (96,277) |
Proceeds from sales of real estate and related investments | 43,873 | 350,591 |
Proceeds received from repayment of notes and mortgage loans receivable | 45,472 | 50,951 |
Distributions of capital from partially owned entities | 9,636 | 140,069 |
Acquisitions of real estate and other | 0 | (32,484) |
Deposits in connection with real estate acquisitions | 991 | (9,185) |
Proceeds from sales of, and return of investment in, marketable securities | 9,115 | 8,338 |
Investments in notes and mortgage loans receivable | 0 | (7,397) |
Purchases of marketable securities | (11,597) | (2,140) |
Net cash (used in) provided by investing activities | (219,310) | 35,163 |
Cash Flows from Financing Activities: | ||
Proceeds from issuance of common shares | 710,226 | 0 |
Proceeds from borrowings | 520,137 | 1,215,500 |
Repayments of borrowings | (644,011) | (793,599) |
Dividends paid on common shares | (126,174) | (276,478) |
Distributions to noncontrolling interests | (20,931) | (47,083) |
Dividends paid on preferred shares | (28,540) | (28,567) |
Debt issuance costs | (4,338) | (13,155) |
Exercise of share options and other | (522) | 12,140 |
Purchase of outstanding Series G Preferred Units | (24,331) | 0 |
Net cash provided by financing activities | 381,516 | 68,758 |
Net increase in cash and cash equivalents | 541,645 | 557,437 |
Cash and cash equivalents at beginning of period | 1,526,853 | 1,154,595 |
Cash and cash equivalents at end of period | 2,068,498 | 1,712,032 |
Supplemental Disclosure of Cash Flow Information: | ||
Cash payments for interest (including capitalized interest of $10,078 and $31,817) | 321,065 | 316,642 |
Cash payments for income taxes | 3,840 | 4,078 |
Non-Cash Transactions: | ||
Adjustments to redeemable Class A Operating Partnership Units | 194,183 | 26,824 |
Conversion of Class A Operating Partnership units to common shares, at redemption value | 49,990 | 44,412 |
Dividends paid in common shares | 188,986 | 0 |
Unit distributions paid in Class A units | 16,280 | 0 |
Unrealized net loss on securities available for sale | $12,213 | $33,776 |
4100 - Parenthetical Data For C
4100 - Parenthetical Data For Consolidated Statements Of Cash Flows (USD $) | ||
In Thousands | 6 Months Ended
Jun. 30, 2009 | 6 Months Ended
Jun. 30, 2008 |
Parenthetical Data For Consolidated Statements Of Cash Flows | ||
including capitalized interest | $10,078 | $31,817 |
6000 - Organization
6000 - Organization | |
6 Months Ended
Jun. 30, 2009 USD / shares | |
Organization | |
Organization | 1. Organization Vornado Realty Trust (Vornado) is a fully-integrated real estate investment trust (REIT) and conducts its business through Vornado Realty L.P., a Delaware limited partnership (the Operating Partnership). Vornado is the sole general partner of, and owned approximately 91.9% of the common limited partnership interest in, the Operating Partnership at June 30, 2009. All references to we, us, our, the Company and Vornado refer to Vornado Realty Trust and its consolidated subsidiaries, including the Operating Partnership. Substantially all of Vornados assets are held through subsidiaries of the Operating Partnership. Accordingly, Vornados cash flow and ability to pay dividends to its shareholders is dependent upon the cash flow of the Operating Partnership and the ability of its direct and indirect subsidiaries to first satisfy their obligations to creditors. |
6010 - Basis of Presentation
6010 - Basis of Presentation | |
6 Months Ended
Jun. 30, 2009 USD / shares | |
Basis of Presentation | |
Basis of Presentation | 2. Basis of Presentation The accompanying consolidated financial statements are unaudited. In our opinion, all adjustments (which include only normal recurring adjustments) necessary to present fairly the financial position, results of operations and changes in cash flows have been made. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the UnitedStates of America (GAAP) have been condensed or omitted. These condensed consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q of the Securities and Exchange Commission (the SEC) and should be read in conjunction with the consolidated financial statements and notes thereto included in our Annual Report on Form10-K for the year ended December31, 2008, as filed with the SEC. The results of operations for the three and six months ended June 30, 2009, are not necessarily indicative of the operating results for the full year. The accompanying consolidated financial statements include the accounts of Vornado and the Operating Partnership, as well as certain partially owned entities in which we own more than 50%, unless a partner has shared board and management representation and substantive participation rights on all significant business decisions, or 50% or less when (i) we are the primary beneficiary and the entity qualifies as a variable interest entity under Financial Accounting Standards Board (FASB) Interpretation No. 46 (Revised), Consolidation of Variable Interest Entities (FIN 46R), or (ii) when we are a general partner that meets the criteria under Emerging Issues Task Force (EITF) Issue No. 04-5, Determining Whether a General Partner, or the General Partners as a Group, Controls a Limited Partnership or Similar Entity when the Limited Partners have certain rights. All significant inter-company amounts have been eliminated. Equity interests in partially owned entities are accounted for under the equity method of accounting if they do not meet the criteria for consolidation and we have the ability to exercise significant influence over the operating and financial policies of the company. Generally an ownership interest of 20% or more is sufficient to demonstrate the ability to exercise significant influence. When partially owned investments are in partnership form, the 20% threshold for equity method accounting is generally reduced to 3% to 5%, based on our ability to influence the operating and financial policies of the partnership. Investments accounted for under the equity method are initially recorded at cost and subsequently adjusted for our share of the net income or loss and cash contributions and distributions to or from these entities. Investments in partially owned entities that do not meet the criteria for consolidation or for equity method accounting are accounted for on the cost method. We have made estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of |
6020 - Recently Issued Accounti
6020 - Recently Issued Accounting Literature | |
6 Months Ended
Jun. 30, 2009 USD / shares | |
Recently Issued Accounting Literature | |
Recently Issued Accounting Literature | 3. Recently Issued Accounting Literature In December 2007, the FASB issued Statement No. 141R, Business Combinations (SFAS 141R). SFAS 141R broadens the guidance of SFAS 141, extending its applicability to all transactions and other events in which one entity obtains control over one or more other businesses. It also broadens the fair value measurement and recognition of assets acquired, liabilities assumed, and interests transferred as a result of business combinations; and acquisition related costs will generally be expensed rather than included as part of the basis of the acquisition. SFAS 141R expands required disclosures to improve the ability to evaluate the nature and financial effects of business combinations. SFAS 141R became effective for all transactions entered into on or after January 1, 2009. The adoption of SFAS 141R on January 1, 2009 did not have any effect on our consolidated financial statements because there have been no acquisitions during 2009. In December 2007, the FASB issued SFAS 160, which requires a noncontrolling interest in a subsidiary to be reported as equity and the amount of consolidated net income specifically attributable to the noncontrolling interest to be identified in the consolidated financial statements. SFAS 160 also calls for consistency in the manner of reporting changes in the parents ownership interest and requires fair value measurement of any noncontrolling equity investment retained in a deconsolidation. SFAS 160 became effective on January 1, 2009. The adoption of SFAS 160 on January 1, 2009, resulted in (i) the reclassification of minority interests in consolidated subsidiaries to noncontrolling interests in consolidated subsidiaries, a component of permanent equity on our consolidated balance sheets, (ii) the reclassification of minority interest expense to net income attributable to noncontrolling interests, on our consolidated statements of income, and (iii) additional disclosures, including a consolidated statement of changes in equity in quarterly reporting periods. In March 2008, the FASB issued Statement No. 161, Disclosures about Derivative Instruments and Hedging Activities an Amendment of FASB Statement No. 133 (SFAS 161). SFAS 161 requires enhanced disclosures related to derivative instruments and hedging activities, including disclosures regarding how an entity uses derivative instruments, how derivative instruments and related hedged items are accounted for under FASB Statement No. 133, Accounting for Derivative Instruments and Hedging Activities (SFAS 133), and the impact of derivative instruments and related hedged items on an entitys financial position, financial performance and cash flows. SFAS 161 became effective on January 1, 2009. The adoption of SFAS 161 on January 1, 2009 did not have a material effect on our consolidated financial statements. In June 2008, the FASB ratified EITF Issue 07-5, Determining Whether an Instrument (or Embedded Feature) Is Indexed to an Entitys Own Stock (EITF 07-5). Paragraph 11(a) of SFAS 133 specifies that a contract that would otherwise meet the definition of a derivative but is both (a)indexed to the Companys own stoc |
6030 - Fair Value Measurements
6030 - Fair Value Measurements | |
6 Months Ended
Jun. 30, 2009 USD / shares | |
Fair Value Measurements | |
Fair Value Measurements | 4. Fair Value Measurements FASB Statement No. 157, Fair Value Measurements (SFAS 157) defines fair value and establishes a framework for measuring fair value. The objective of fair value is to determine the price that would be received upon the sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (the exit price). SFAS 157 establishes a fair value hierarchy that prioritizes observable and unobservable inputs used to measure fair value into three levels: Level 1 quoted prices (unadjusted) in active markets that are accessible at the measurement date for assets or liabilities; Level 2 observable prices that are based on inputs not quoted in active markets, but corroborated by market data; and Level 3 unobservable inputs that are used when little or no market data is available. The fair value hierarchy gives the highest priority to Level 1 inputs and the lowest priority to Level 3 inputs. In determining fair value, we utilize valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible as well as consider counterparty credit risk in our assessment of fair value. Financial assets and liabilities measured at fair value in our consolidated financial statements consist primarily of (i) marketable securities and (ii) the assets of our deferred compensation plan (primarily marketable securities and equity investments in limited partnerships), for which there is a corresponding liability on our consolidated balance sheets. Financial assets and liabilities measured at fair value as of June 30, 2009 are presented in the table below based on their level in the fair value hierarchy. Fair Value Hierarchy (Amounts in thousands) Total Level 1 Level 2 Level 3 Marketable equity securities $ 107,938 $ 107,938 $ $ Deferred compensation plan assets 70,391 34,223 36,168 Total assets $ 178,329 $ 142,161 $ $ 36,168 Mandatorily redeemable instruments (included in other liabilities) $ 57,038 $ 57,038 $ $ Deferred compensation plan liabilities 70,391 34,223 36,168 Total liabilities $ 127,429 $ 91,261 $ $ 36,168 The fair value of Level 3 deferred compensation plan assets represents equity investments in certain limited partnerships, for which there is a corresponding Level 3 liability to the plans participants. The following is a summary of changes in Level 3 deferred compensation plan assets and liabilities, for the three months ended June 30, 2009. (Amounts in thousands) Beginning Balance Total Realized/ Unrealized Gains Purchases, Sales, Other Settlements and Issuances, net Ending Balance For the three months ended June 30, 2009 $ 32,426 $ 2,806 $ 936 $ 36,168 For the six months ended June 30, 2009 $ 34,176 $ 1,310 $ 682 $ 36,168 We have estimated the fair value of all financial instruments reflected in the accompanying consolidated balance sheets at amounts which are based upon an interpreta |
6040 - Investments in Partially
6040 - Investments in Partially Owned Entities | |
6 Months Ended
Jun. 30, 2009 USD / shares | |
Investments in Partially Owned Entities | |
Investments in Partially Owned Entities | 5. Investments in Partially Owned Entities Toys R Us (Toys) As of June 30, 2009, we own 32.7% of Toys. We account for our investment in Toys under the equity method and record our 32.7% share of Toys income or loss on a one-quarter lag basis because Toys fiscal year ends on the Saturday nearest January 31, and our fiscal year ends on December 31. The business of Toys is highly seasonal. Historically, Toys fourth quarter net income accounts for more than 80% of its fiscal year net income. As of June 30, 2009, the carrying amount of our investment in Toys does not differ materially from our share of the equity in the net assets of the parent company. Below is a summary of Toys latest available financial information on a purchase accounting basis. (Amounts in millions) Balance Sheet: As of May 2, 2009 As of November 1, 2008 Total assets $ 11,469 $ 12,410 Total liabilities $ 10,166 $ 11,393 Toys stockholders equity $ 1,197 $ 929 For the Three Months Ended For the Six Months Ended Income Statement: May 2, 2009 May 3, 2008 May 2, 2009 May 3, 2008 Total revenues $ 2,477 $ 2,719 $ 7,938 $ 8,546 Net (loss) income attributable to Toys $ (50 ) $ (95 ) $ 242 $ 144 Alexanders (NYSE: ALX) As of June 30, 2009, we own 32.4% of the outstanding common stock of Alexanders. We manage, lease and develop Alexanders properties pursuant to agreements, which expire in March of each year and are automatically renewable. As of June 30, 2009 and December 31, 2008, Alexanders owed us $57,516,000 and $44,086,000, respectively, in fees under these agreements. Based on Alexanders June 30, 2009 closing share price of $269.60, the market value (fair value pursuant to SFAS 157) of our investment in Alexanders is $445,937,000, or $277,077,000 in excess of the carrying amount on our consolidated balance sheet. As of June 30, 2009, the carrying amount of our investment in Alexanders exceeds our share of the equity in the net assets of Alexanders by approximately $35,314,000. The majority of this basis difference resulted from the excess of our purchase price for the Alexanders common stock acquired over the book value of Alexanders net assets. Substantially all of this basis difference was allocated, based on our estimates of the fair values of Alexanders assets and liabilities, to their real estate (land and building). We are amortizing the basis difference related to the buildings into earnings as additional depreciation expense over their estimated useful lives. This depreciation is not material to our share of equity in Alexanders net income or loss. The basis difference related to the land will be recognized upon disposition of our investment. Lexington Realty Trust (Lexington) (NYSE: LXP) As of June 30, 2009, we own 17,058,005 Lexington common shares, or approximately 16.1% of Lexington common equity. Pursuant to the guidance in APB Opinion No. 18, The Equity Method of Accounting for Investments in Common Stock, we account for our investment in Lexington under the equity method because we believe w |
6050 - Mezzanine Loans Receivab
6050 - Mezzanine Loans Receivable | |
6 Months Ended
Jun. 30, 2009 USD / shares | |
Mezzanine Loans Receivable | |
Mezzanine Loans Receivable | 6. Mezzanine Loans Receivable The following is a summary of our investments in mezzanine loans as of June 30, 2009 and December 31, 2008. (Amounts in thousands) Interest Rate as of Carrying Amount as of Mezzanine Loans Receivable: Maturity June 30, 2009 June 30, 2009 December 31, 2008 Equinox 02/13 14.00% $ 92,003 $ 85,796 Tharaldson Lodging Companies 04/10 (1) 4.62% 76,253 76,341 Riley HoldCo Corp 02/15 10.00% 74,437 74,381 280 Park Avenue 06/16 10.25% 73,750 73,750 Charles Square Hotel, Cambridge (2) (2) 41,796 Other, net 01/14-12/18 4.75%-12.00% 97,565 120,475 414,008 472,539 Valuation allowance (3) (122,738 ) $ 291,270 $ 472,539 __________________ (1) The borrower has a one-year extension option. (2) On June 1, 2009, this loan, which was scheduled to mature in September 2009, was repaid. (3) Represents loan loss accruals on mezzanine loans based on our estimate of the net realizable value of each loan. Our estimates are based on the present value of expected cash flows, discounted at each loans effective interest rate, or if a loan is collateralized, based on the fair value of the underlying collateral, adjusted for estimated costs to sell. The excess of the carrying amount over the net realizable value of a loan is recognized as a reduction of interest and other investment (loss) income, net in our consolidated statement of income. |
6060 - Discontinued Operations
6060 - Discontinued Operations | |
6 Months Ended
Jun. 30, 2009 USD / shares | |
Discontinued Operations | |
Discontinued Operations | 7. Discontinued Operations In accordance with the provisions of FASB Statement No. 144, Accounting for the Impairment and Disposal of Long- Lived Assets, we have classified the revenues and expenses of properties and businesses sold or to be sold to income from discontinued operations and the related assets and liabilities to assets related to discontinued operations and liabilities related to discontinued operations for all periods presented in the accompanying consolidated financial statements. The following table sets forth the assets and liabilities related to discontinued operations at June 30, 2009 and December 31, 2008. (Amounts in thousands) Assets related to Discontinued Operations as of Liabilities related to Discontinued Operations as of June 30, 2009 December 31, 2008 June 30, 2009 December 31, 2008 H Street land under sales contract $ 108,292 $ 108,292 $ $ The following table sets forth the combined results of operations related to discontinued operations for the three and six months ended June 30, 2009 and 2008. (Amounts in thousands) For the Three Months Ended June 30, For the Six Months Ended June 30, 2009 2008 2009 2008 Revenues $ $ 2,940 $ $ 222,361 Expenses 1,432 222,042 Net income 1,508 319 Net gain on sale of our 47.6% interest in Americold Realty Trust 112,690 Net gain on sale of Tysons Dulles Plaza 56,831 56,831 Net gain on sale of other real estate 580 Income from discontinued operations $ $ 58,339 $ $ 170,420 |
6070 - Identified Intangible As
6070 - Identified Intangible Assets and Intangible Liabilities | |
6 Months Ended
Jun. 30, 2009 USD / shares | |
Identified Intangible Assets and Intangible Liabilities | |
Identified Intangible Assets and Intangible Liabilities | 8. Identified Intangible Assets and Intangible Liabilities The following summarizes our identified intangible assets (primarily acquired above-market leases) and intangible liabilities (primarily acquired below-market leases) as of June 30, 2009 and December 31, 2008. Balance as of (Amounts in thousands) June 30, 2009 December 31, 2008 Identified intangible assets (included in other assets): Gross amount $ 770,633 $ 784,192 Accumulated amortization (286,754 ) (258,242 ) Net $ 483,879 $ 525,950 Identified intangible liabilities (included in deferred credit): Gross amount $ 964,621 $ 998,179 Accumulated amortization (291,072 ) (278,357 ) Net $ 673,549 $ 719,822 Amortization of acquired below-market leases, net of acquired above-market leases resulted in an increase to rental income of $19,560,000 and $25,858,000 for the three months ended June 30, 2009 and 2008, respectively, and $37,542,000 and $49,129,000 for the six months ended June 30, 2009 and 2008, respectively. Estimated annual amortization of acquired below-market leases, net of acquired above-market leases for each of the five succeeding years, commencing January 1, 2010 is as follows: (Amounts in thousands) 2010 $ 62,324 2011 59,163 2012 55,022 2013 47,081 2014 41,252 Amortization of all other identified intangible assets (a component of depreciation and amortization expense) was $17,778,000 and $19,404,000 for the three months ended June 30, 2009 and 2008, respectively, and $33,564,000 and $44,358,000 for the six months ended June 30, 2009 and 2008, respectively. Estimated annual amortization of all other identified intangible assets including acquired in-place leases, customer relationships, and third party contracts for each of the five succeeding years, commencing January 1, 2010 is as follows: (Amounts in thousands) 2010 $ 55,923 2011 53,273 2012 48,928 2013 41,746 2014 23,660 We are a tenant under ground leases for certain of our properties. Amortization of these acquired below-market leases resulted in an increase to rent expense of $533,000 and $1,066,000 in each of the three-month and six-month periods ended June 30, 2009 and 2008, respectively. Estimated annual amortization of these below market leases for each of the five succeeding years, commencing January 1, 2010 is as follows: (Amounts in thousands) 2010 $ 2,133 2011 2,133 2012 2,133 2013 2,133 2014 2,133 |
6080 - Debt
6080 - Debt | |
6 Months Ended
Jun. 30, 2009 USD / shares | |
Debt | |
Debt | 9. Debt The following is a summary of our debt: (Amounts in thousands) Balance at Notes and Mortgages Payable: Maturity (1) Interest Rate at June 30, 2009 June 30, 2009 December 31, 2008 Fixed Rate: New York Office: 1290 Avenue of the Americas 01/13 5.97% $ 439,678 $ 444,667 350 Park Avenue 01/12 5.48% 430,000 430,000 770 Broadway 03/16 5.65% 353,000 353,000 888 Seventh Avenue 01/16 5.71% 318,554 318,554 Two Penn Plaza 02/11 4.97% 284,950 287,386 909 Third Avenue 04/15 5.64% 212,375 214,074 Eleven Penn Plaza 12/11 5.20% 205,017 206,877 Washington, DC Office: Skyline Place 02/17 5.74% 678,000 678,000 Warner Building 05/16 6.26% 292,700 292,700 River House Apartments 04/15 5.43% 195,546 195,546 1215 Clark Street, 200 12th Street and 251 18th Street 01/25 7.09% 114,536 115,440 Bowen Building 06/16 6.14% 115,022 115,022 Reston Executive I, II and III 01/13 5.57% 93,000 93,000 1101 17th , 1140 Connecticut, 1730 M and 1150 17th Street 08/10 6.74% 86,867 87,721 1550 and 1750 Crystal Drive 11/14 7.08% 82,967 83,912 Universal Buildings 04/14 4.88% 58,307 59,728 1235 Clark Street 07/12 6.75% 53,692 54,128 2231 Crystal Drive 08/13 7.08% 49,564 50,394 1750 Pennsylvania Avenue 06/12 7.26% 46,225 46,570 241 18th Street 10/10 6.82% 46,097 46,532 2011 Crystal Drive (2) 10/09 6.88% 37,999 38,338 1225 Clark Street 08/13 7.08% 29,647 30,145 1800, 1851 and 1901 South Bell Street 12/11 6.91% 23,663 27,801 Retail: Cross-collateralized mortgages on 42 shopping centers (3) 03/10 7.86% 396,994 448,115 Springfield Mall (including present value of purchase option) 10/12-04/13 5.45% 250,710 252,803 Montehiedra Town Center 07/16 6.04% 120,000 120,000 Broadway Mall 07/13 5.40% 93,743 94,879 828-850 Madison Avenue Condominium 06/18 5.29% 80,000 80,000 Las Catalinas Mall 11/13 6.97% 60,048 60,766 Other 08/09-11/34 4.75%-7.33% 181,580 159,597 Merchandise Mart: Merchandise Mart 12/16 5.57% 550,000 550,000 High Point Complex 09/16 6.34% 219,086 220,361 Boston Design Center 09/15 5.02% 70,206 70,740 Washington Design Center 11/11 6.95% 44,622 44,992 Other: 555 California Street (4) 05/10-09/11 5.97% 662,974 720,671 Industrial Warehouses 10/11 6.95% 25,058 25,268 Total Fixed Interest Notes and Mortgages Payable 5.96% 7,002,427 7,117,727 _____________________ See notes on page 22. (Amounts in thousands) Balance at Notes and Mortgages Payable: Maturity (1) Spread over LIBOR Interest Rate at June 30, 2009 June 30, 2009 |
6090 - Redeemable Noncontrollin
6090 - Redeemable Noncontrolling Interests | |
6 Months Ended
Jun. 30, 2009 USD / shares | |
Redeemable Noncontolling Interests | |
Redeemable Noncontrolling Interests | 10. Redeemable Noncontrolling Interests Redeemable noncontrolling interests on our consolidated balance sheets represent Operating Partnership units held by third parties and are comprised of (i) Class A units, (ii) Series B convertible preferred units, and (iii) Series D-10, D-11, D-12, D-14 and D-15 (collectively, Series D) cumulative redeemable preferred units. Redeemable noncontrolling interests are accounted for in accordance with EITF Topic D-98, Classification and Measurement of Redeemable Securities, and are presented at the greater of their carrying amount or redemption value at the end of each reporting period. Changes in the value from period to period are charged to additional capital on our consolidated balance sheets. As of June 30, 2009 and December 31, 2008, the aggregate value of the redeemable noncontrolling interests was $936,099,000 and $1,177,978,000, respectively. Below is a table reflecting the activity of the redeemable noncontrolling interests. (Amounts in thousands) Balance at December 31, 2007 $ 1,658,303 Net income 63,091 Distributions (37,491 ) Conversion of Class A redeemable units into common shares, at redemption value (44,412 ) Mark-to-market adjustments on Class A redeemable units, in accordance with Topic D-98 (26,824 ) Other, net 12,369 Balance at June 30, 2008 $ 1,625,036 Balance at December 31, 2008 $ 1,177,978 Net income 17,281 Distributions (20,931 ) Conversion of Class A redeemable units into common shares, at redemption value (49,990 ) Mark-to-market adjustments on Class A redeemable units, in accordance with Topic D-98 (194,183 ) Other, net 5,944 Balance at June 30, 2009 $ 936,099 Redeemable noncontrolling interests exclude our Series G convertible preferred units and Series D-13 cumulative redeemable preferred units, as they are accounted for in accordance with FASB Statement No. 150, Accounting for Certain Financial Investments with Characteristics of both Liabilities and Equity, because of their possible settlement by issuing a variable number of Vornado common shares. Accordingly the fair value of these units is included as a component of other liabilities on our consolidated balance sheets and aggregated $57,038,000 and $83,079,000 as of June 30, 2009 and December 31, 2008, respectively. |
6100 - Income Per Share
6100 - Income Per Share | |
6 Months Ended
Jun. 30, 2009 USD / shares | |
Income Per Share | |
Income Per Share | 11. Income Per Share Income per share is computed in accordance with the provisions of SFAS 128. In January 2009, we adopted the provisions of FSP 03-6-1, which required us to include unvested share-based payment awards that contain non-forfeitable rights to dividends or dividend equivalents as participating securities in the computation of basic and diluted income per share pursuant to the two-class method as described in SFAS 128. The adoption of FSP 03-6-1 did not have a material effect on our computation of income per share. During 2009, we paid a portion of our first and second quarter dividends in Vornado common shares. In accordance with SFAS 128, we have included the 4,850,000 newly issued common shares in the computation of income per share retroactively for the three and six months ended June 30, 2008. On April 22, 2009, we sold 17,250,000 common shares, including underwriters over-allotment, in an underwritten public offering pursuant to an effective registration statement at an initial public offering price of $43.00 per share. We received net proceeds of approximately $710,226,000, after the underwriters discount and offering expenses and contributed the net proceeds to the Operating Partnership in exchange for 17,250,000 Class A units of the Operating Partnership. The following table provides a reconciliation of both net income and the number of common shares used in the computation of (i) basic income per common share - which utilizes the weighted average number of common shares outstanding without regard to dilutive potential common shares, and (ii) diluted income per common share - which includes the weighted average common shares and potentially dilutive share equivalents. Potentially dilutive share equivalents include our Series A convertible preferred shares, employee stock options, restricted share awards and exchangeable senior debentures due 2025. (Amounts in thousands, except per share amounts) For The Three Months Ended June 30, For The Six Months Ended June 30, 2009 2008 2009 2008 Numerator: (Loss) income from continuing operations, net of income attributable to noncontrolling interests $ (37,635 ) $ 78,127 $ 102,475 $ 380,630 Income from discontinued operations, net of income attributable to noncontrolling interests 53,005 154,340 Net (loss) income attributable to Vornado (37,635 ) 131,132 102,475 534,970 Preferred share dividends (14,269 ) (14,274 ) (28,538 ) (28,549 ) Net (loss) income attributable to common shareholders (51,904 ) 116,858 73,937 506,421 Earnings allocated to unvested participating securities (55 ) (84 ) (110 ) (163 ) Numerator for basic (loss) income per share (51,959 ) 116,774 73,827 506,258 Impact of assumed conversions: Interest on 3.875% exchangeable senior debentures 12,592 Convertible preferred share dividends 48 100 Numerator for diluted (loss) income per share $ (51,959 ) $ 116,822 $ 73,827 $ 518,950 Denominator: De |
6110 - Comprehensive Income
6110 - Comprehensive Income | |
6 Months Ended
Jun. 30, 2009 USD / shares | |
Comprehensive Income | |
Comprehensive Income | 12. Comprehensive Income (Amounts in thousands) For The Three Months Ended June 30, For The Six Months Ended June 30, 2009 2008 2009 2008 Net (loss) income $ (40,375 ) $ 145,817 $ 116,056 $ 595,565 Other comprehensive income (loss) 10,946 (37,852 ) (28,952 ) (58,104 ) Comprehensive (loss) income (29,429 ) 107,965 87,104 537,461 Comprehensive (loss) income attributable to noncontrolling interests (1,853 ) 11,013 11,236 54,959 Comprehensive (loss) income attributable to Vornado $ (27,576 ) $ 96,952 $ 75,868 $ 482,502 Substantially all of the other comprehensive income (loss) for the three and six months ended June 30, 2009 and 2008 relates to losses from the mark-to-market of marketable equity securities classified as available-for-sale and our share of other comprehensive income of partially owned entities (primarily Toys). |
6120 - Fee and Other Income
6120 - Fee and Other Income | |
6 Months Ended
Jun. 30, 2009 USD / shares | |
Fee and Other Income | |
Fee and Other Income | 13. Fee and Other Income The following table sets forth the details of our fee and other income: (Amounts in thousands) For The Three Months Ended June 30, For The Six Months Ended June 30, 2009 2008 2009 2008 Tenant cleaning revenue $ 14,564 $ 14,382 $ 28,858 $ 27,804 Management and leasing fees 3,017 3,840 5,418 7,808 Lease termination fees 1,124 561 2,748 3,014 Other income 17,194 11,829 29,625 20,674 $ 35,899 $ 30,612 $ 66,649 $ 59,300 Fee and other income above include management fee income from InterstateProperties, a related party, of $183,000 and $197,000 for the three months ended June 30, 2009 and 2008, respectively, and $381,000 and $408,000 for the six months ended June 30, 2009 and 2008, respectively. The above table excludes fee income from partially owned entities, which is included in income from partially owned entities (see Note 5 Investments in Partially Owned Entities). |
6130 - Stock based Compensation
6130 - Stock based Compensation | |
6 Months Ended
Jun. 30, 2009 USD / shares | |
Stock-based Compensation | |
Stock-based Compensation | 14. Stock-based Compensation Our Share Option Plan (the Plan) provides for grants of incentive and non-qualified stock options, restricted stock, stock appreciation rights, performance shares and limited partnership units to certain of our employees and officers. We account for all stock-based compensation in accordance FASB Statement No. 123R, Share-Based Payment (SFAS 123R). Stock based compensation expense for the three months ended June 30, 2009 and 2008 consists of stock option awards, restricted common shares, Operating Partnership unit awards and out-performance plan awards. During the three and six months ended June 30, 2009, we recognized $5,651,000 and $15,900,000 of stock-based compensation expense, respectively. During the three and six months ended June 30, 2008 we recognized $8,898,000 and $16,973,000 of stock based compensation expense, respectively. On March 31, 2009, our nine most senior executives voluntarily surrendered their 2007 and 2008 stock option awards and their 2008 out-performance plan awards. Accordingly, we recognized $32,588,000 of expense in the first quarter of 2009 representing the unamortized portion of these awards, which is included as a component of general and administrative expense on our consolidated statement of income. As a result of these voluntary surrenders, stock-based compensation expense will be approximately $7,000,000 lower in 2009 and $9,400,000, $9,400,000, $5,700,000 and $1,000,000 lower in 2010, 2011, 2012 and 2013, respectively. |
6140 - Commitments and Continge
6140 - Commitments and Contingencies | |
6 Months Ended
Jun. 30, 2009 USD / shares | |
Commitments and Contingencies | |
Commitments and Contingencies | 15. Commitments and Contingencies Insurance We carry commercial liability and all risk property insurance ((i) fire, (ii) flood, (iii) extended coverage, (iv) acts of terrorism as defined in the Terrorism Risk Insurance Program Reauthorization Act of 2007 (TRIPRA), which expires in December 2014, and (v) rental loss insurance) with respect to our assets. Our New York Office, Washington, DC Office, Retail and Merchandise Mart divisions have $2.0 billion of per occurrence all risk property insurance coverage in effect through September 15, 2009. Our California properties have earthquake insurance with coverage of $150,000,000 per occurrence, subject to a deductible in the amount of 5% of the value of the affected property, and a $150,000,000 annual aggregate. Penn Plaza Insurance Company, LLC (PPIC), our wholly owned subsidiary, acts as a re-insurer with respect to a portion of our earthquake insurance coverage and as a direct insurer for coverage for acts of terrorism, including nuclear, biological, chemical and radiological (NBCR) acts, as defined by TRIPRA. Coverage for acts of terrorism is fully reinsured by third party insurance companies and the Federal government with no exposure to PPIC. Our coverage for NBCR losses is up to $2 billion, per occurrence, for which PPIC is responsible for a deductible of $3,200,000 and 15% of the balance of a covered loss and the Federal government is responsible for the remaining 85% of a covered loss. We are ultimately responsible for any loss borne by PPIC. We continue to monitor the state of the insurance market and the scope and costs of coverage for acts of terrorism. However, we cannot anticipate what coverage will be available on commercially reasonable terms in future policy years. Our debt instruments, consisting of mortgage loans secured by our properties (which are generally non-recourse to us), senior unsecured notes, exchangeable senior debentures, convertible senior debentures and revolving credit agreements contain customary covenants requiring us to maintain insurance. Although we believe that we have adequate insurance coverage for purposes of these agreements, we may not be able to obtain an equivalent amount of coverage at reasonable costs in the future. Further, if lenders insist on greater coverage than we are able to obtain, it could adversely affect our ability to finance and/or refinance our properties and expand our portfolio. Other Contractual Obligations At June 30, 2009, there were $38,673,000 of outstanding letters of credit under our $965,000,000 revolving credit facility. Our credit facilities and our senior unsecured notes contain financial covenants that require us to maintain minimum interest coverage and maximum debt to market capitalization ratios, and provide for higher interest rates in the event of a decline in our ratings below Baa3/BBB. Our credit facilities and our senior unsecured notes also contain customary conditions precedent to borrowing, including representations and warranties and also contain customary events of default that could give rise to accelerated repayment, including items such as the failure to pay interest or princ |
6150 - Retirement Plan
6150 - Retirement Plan | |
6 Months Ended
Jun. 30, 2009 USD / shares | |
Retirement Plan | |
Retirement Plan | 16. Retirement Plans In the first quarter of 2009, we finalized the termination of the Merchandise Mart Properties Pension Plan, which resulted in a $2,800,000 pension settlement expense that is included as a component of general and administrative expense on our consolidated statement of income for the six months ended June 30, 2009. |
6160 - Costs of Acquisitions No
6160 - Costs of Acquisitions Not Consummated | |
6 Months Ended
Jun. 30, 2009 USD / shares | |
Costs of Acquisitions Not Consummated | |
Costs of Acquisitions Not Consummated | 17. Costs of Acquisitions Not Consummated During the three and six months ended June 30, 2008, we wrote-off $726,000 and $3,009,000, respectively, of costs associated with acquisitions not consummated (primarily Hudson Rail Yards). |
6170 - Marketable Securities
6170 - Marketable Securities | |
6 Months Ended
Jun. 30, 2009 USD / shares | |
Marketable Securities | |
Marketable Securities | 18. Marketable Securities At June 30, 2009 and December 31, 2008, we had $14,312,000 and $2,061,000, respectively, of net unrealized losses on our marketable equity securities. We have concluded that the decline in the value of each of the securities in our portfolio is not other-than-temporary. In the first quarter of 2008, we concluded that an investment in a marketable equity security was other-than-temporarily impaired and recognized a non-cash impairment charge of $9,073,000, based on the March 31, 2008 closing share price of the security. The following table sets forth the details of our marketable securities: As of June 30, 2009 As of December 31, 2008 (Amounts in thousands) Carrying Amount Fair Value Carrying Amount Fair Value Marketable equity securities $ 107,938 $ 107,938 $ 118,438 $ 118,438 Debt securities held-to-maturity 218,733 218,959 215,884 164,728 $ 326,671 $ 326,897 $ 334,322 $ 283,166 |
6180 - Segment Information
6180 - Segment Information | |
6 Months Ended
Jun. 30, 2009 USD / shares | |
Segment information | |
Segment information | 19. Segment Information Below is a summary of net income and a reconciliation of our net income to EBITDA(1) by segment for the three and six months ended June 30, 2009 and 2008. (Amounts in thousands) For the Three Months Ended June 30, 2009 Total New York Office Washington, DC Office Retail Merchandise Mart Toys Other (3) Property rentals $ 513,586 $ 190,226 $ 133,424 $ 89,973 $ 60,954 $ $ 39,009 Straight-line rents: Contractual rent increases 13,991 7,474 3,798 2,213 652 (146 ) Amortization of free rent 11,873 767 6,555 4,109 271 171 Amortization of acquired below- market leases, net 19,560 9,885 946 8,267 12 450 Total rentals 559,010 208,352 144,723 104,562 61,889 39,484 Tenant expense reimbursements 83,476 32,092 14,514 30,249 4,512 2,109 Fee and other income: Tenant cleaning revenue 14,564 19,962 (5,398 ) Management and leasing fees 3,017 999 1,987 413 (43 ) (339 ) Lease termination fees 1,124 256 700 100 68 Other 17,194 3,214 4,712 1,189 1,525 6,554 Total revenues 678,385 264,875 166,636 136,513 67,951 42,410 Operating expenses 270,297 109,646 54,940 53,579 34,470 17,662 Depreciation and amortization 137,317 43,153 34,666 28,935 13,767 16,796 General and administrative 49,632 4,531 5,560 6,393 6,930 26,218 Total expenses 457,246 157,330 95,166 88,907 55,167 60,676 Operating income (loss) 221,139 107,545 71,470 47,606 12,784 (18,266 ) Income applicable to Alexanders 6,614 193 262 6,159 Loss applicable to Toys (327 ) (327 ) (Loss) income from partially owned entities (22,797 ) 1,252 2,044 794 35 (26,922 ) Interest and other investment (loss) income, net (97,706 ) 240 179 249 41 (98,415 ) Interest and debt expense (159,525 ) (33,356 ) (31,571 ) (22,609 ) (12,964 ) (59,025 ) Net gains of early extinguishment of debt 17,684 17,684 (Loss) income before income taxes (34,918 ) 75,874 42,122 26,302 (104 ) (327 ) (178,785 ) Income tax expense (5,457 ) (260 ) (755 ) (111 ) (665 ) (3,666 ) Net (loss) income (40,375 ) 75,614 41,367 26,191 (769 ) (327 ) (182,451 ) Net loss (income) attributable to noncontrolling interests, including unit distributions 2,740 (1,744 ) 497 3,987 Net (loss) income attributable to Vornado (37,635 ) 73,870 41,367 26,688 (769 ) (327 ) (178,464 ) Interest and debt expense (2) 197,512 31,675 32,237 24,459 13,190 15,578 80,373 Depreciation and amortization(2) 181,5 |
9000 - Document Information
9000 - Document Information | |
6 Months Ended
Jun. 30, 2009 USD / shares | |
Document Information [Line Items] | |
Document Type | 10-Q |
Document Period End Date | 2009-06-30 |
Amendment Flag | false |
9001 - Entity Information
9001 - Entity Information (USD $) | ||
6 Months Ended
Jun. 30, 2009 | Jun. 30, 2008
| |
Entity Information [Line Items] | ||
Entity Registrant Name | VORNADO REALTY TRUST | |
Entity Central Index Key | 0000899689 | |
Current Fiscal Year End Date | --06-28 | |
Entity Well-known Seasoned Issuer | Yes | |
Entity Voluntary Filers | No | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Public Float | $11,989,973,000 | |
Entity Common Stock, Shares Outstanding | 178,561,963 |