Consolidated Balance Sheets
Consolidated Balance Sheets (USD $) | ||
In Thousands | Sep. 30, 2009
| Dec. 31, 2008
|
Real estate, at cost: | ||
Land | $4,551,044 | $4,491,165 |
Buildings and improvements | 12,567,415 | 12,134,943 |
Development costs and construction in progress | 841,051 | 966,676 |
Leasehold improvements and equipment | 125,931 | 118,603 |
Total | 18,085,441 | 17,711,387 |
Less accumulated depreciation and amortization | (2,413,803) | (2,167,403) |
Real estate, net | 15,671,638 | 15,543,984 |
Cash and cash equivalents | 2,560,011 | 1,526,853 |
Restricted cash | 287,575 | 375,888 |
Marketable securities | 313,218 | 334,322 |
Accounts receivable, net of allowance for doubtful accounts of $48,559 and $32,834 | 161,097 | 201,566 |
Investments in partially owned entities, including Alexander's of $187,272 and $137,305 | 812,424 | 790,154 |
Investment in Toys "R" Us | 422,165 | 293,096 |
Mezzanine loans receivable, net of a $122,738 allowance in 2009 | 269,976 | 472,539 |
Receivables arising from the straight-lining of rents, net of allowance of $4,139 and $5,773 | 661,074 | 592,432 |
Deferred leasing and financing costs, net of accumulated amortization of $187,937 and $168,714 | 301,339 | 304,125 |
Assets related to discontinued operations | 108,151 | 281,110 |
Due from officers | 13,148 | 13,185 |
Other assets | 768,557 | 688,794 |
Total Assets | 22,350,373 | 21,418,048 |
LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND SHAREHOLDERS' EQUITY | ||
Notes and mortgages payable | 8,895,328 | 8,761,640 |
Convertible senior debentures | 1,989,955 | 2,221,743 |
Senior unsecured notes | 711,604 | 617,816 |
Exchangeable senior debentures | 482,875 | 478,256 |
Revolving credit facility debt | 648,250 | 358,468 |
Accounts payable and accrued expenses | 548,407 | 515,607 |
Deferred credit | 701,637 | 764,774 |
Deferred compensation plan | 76,777 | 69,945 |
Deferred tax liabilities | 17,858 | 19,895 |
Liabilities related to discontinued operations | 0 | 73,747 |
Other liabilities | 97,009 | 143,527 |
Total liabilities | 14,169,700 | 14,025,418 |
Redeemable noncontrolling interests: | ||
Total redeemable noncontrolling interests | 1,212,765 | 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 179,523,984 and 155,285,903 shares | 7,151 | 6,195 |
Additional capital | 6,993,131 | 6,025,976 |
Earnings less than distributions | (1,278,727) | (1,047,340) |
Accumulated other comprehensive income (loss) | 16,489 | (6,899) |
Total Vornado shareholders' equity | 6,561,762 | 5,801,739 |
Noncontrolling interests in consolidated subsidiaries | 406,146 | 412,913 |
Total equity | 6,967,908 | 6,214,652 |
Liabilities And Shareholders' Equity | 22,350,373 | 21,418,048 |
Redeemable noncontrolling interests units outstanding - Class A [Member] | ||
Redeemable noncontrolling interests: | ||
Total redeemable noncontrolling interests | 917,527 | 882,740 |
Redeemable noncontrolling interests units outstanding - Series D [Member] | ||
Redeemable noncontrolling interests: | ||
Total redeemable noncontrolling interests | 280,000 | 280,000 |
Redeemable noncontrolling interests units outstanding - Series B [Member] | ||
Redeemable noncontrolling interests: | ||
Total redeemable noncontrolling interests | $15,238 | $15,238 |
Consolidated Balance Sheets [Pa
Consolidated Balance Sheets [Parentheticals] (USD $) | ||
In Thousands, except Share data | Sep. 30, 2009
| Dec. 31, 2008
|
Consolidated Balance Sheets [Parentheticals] | ||
Accounts receivable, allowance for doubtful accounts | $48,559 | $32,834 |
Investments in partially owned entities, Alexander's | 187,272 | 137,305 |
Mezzanine loans receivable, allowance in 2009 | 122,738 | 0 |
Receivables arising from the straight-lining of rents, allowance | 4,139 | 5,773 |
Deferred leasing and financing costs, accumulated amortization | $187,937 | $168,714 |
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 | 179,523,984 | 155,285,903 |
Common shares of beneficial interest: outstanding shares | 179,523,984 | 155,285,903 |
Redeemable noncontrolling interests units outstanding - Class A [Member] | ||
Consolidated Balance Sheets [Parentheticals] | ||
Redeemable noncontrolling interest units outstanding | 14,245,103 | 14,627,005 |
Redeemable noncontrolling interests units outstanding - Series D [Member] | ||
Consolidated Balance Sheets [Parentheticals] | ||
Redeemable noncontrolling interest units outstanding | 11,200,000 | 11,200,000 |
Redeemable noncontrolling interests units outstanding - Series B [Member] | ||
Consolidated Balance Sheets [Parentheticals] | ||
Redeemable noncontrolling interest units outstanding | 444,559 | 444,559 |
Consolidated Statements of Inco
Consolidated Statements of Income (USD $) | ||||
In Thousands, except Per Share data | 3 Months Ended
Sep. 30, 2009 | 3 Months Ended
Sep. 30, 2008 | 9 Months Ended
Sep. 30, 2009 | 9 Months Ended
Sep. 30, 2008 |
REVENUES: | ||||
Property rentals | $550,054 | $547,498 | $1,654,357 | $1,637,831 |
Tenant expense reimbursements | 89,530 | 97,815 | 270,934 | 269,646 |
Fee and other income | 31,635 | 30,755 | 98,284 | 90,056 |
Total revenues | 671,219 | 676,068 | 2,023,575 | 1,997,533 |
EXPENSES: | ||||
Operating | 265,952 | 276,115 | 814,561 | 793,391 |
Depreciation and amortization | 130,503 | 136,550 | 398,845 | 397,807 |
General and administrative | 51,684 | 49,494 | 180,381 | 149,164 |
Impairment losses on development projects and costs of acquisitions not consummated | 0 | 5,000 | 0 | 8,009 |
Total expenses | 448,139 | 467,159 | 1,393,787 | 1,348,371 |
Operating income | 223,080 | 208,909 | 629,788 | 649,162 |
Income (loss) applicable to Alexander's | 21,297 | (6,876) | 46,044 | 16,404 |
Income (loss) applicable to Toys "R" Us | 22,077 | (8,141) | 118,897 | 41,510 |
Loss from partially owned entities | (18,784) | (3,099) | (49,124) | (29,167) |
Interest and other investment (loss) income, net | 20,486 | 9,638 | (63,608) | 47,535 |
Interest and debt expense (including amortization of deferred financing costs of $4,350 and $4,257 in each three-month period, respectively, and $12,722 and $13,181 in each nine-month period, respectively) | (158,205) | (157,646) | (475,028) | (474,862) |
Net gains on early extinguishment of debt | 3,407 | 0 | 26,996 | 0 |
Net gains on disposition of wholly owned and partially owned assets other than depreciable real estate | 4,432 | 5,160 | 4,432 | 8,546 |
Income before income taxes | 117,790 | 47,945 | 238,397 | 259,128 |
Income tax (expense) benefit | (5,267) | (5,244) | (15,773) | 207,170 |
Income from continuing operations | 112,523 | 42,701 | 222,624 | 466,298 |
Income from discontinued operations | 43,321 | 846 | 49,276 | 172,814 |
Net income | 155,844 | 43,547 | 271,900 | 639,112 |
Net income attributable to noncontrolling interests, including unit distributions | (15,227) | (6,540) | (28,808) | (67,135) |
Net income attributable to Vornado | 140,617 | 37,007 | 243,092 | 571,977 |
Preferred share dividends | (14,269) | (14,271) | (42,807) | (42,820) |
NET INCOME attributable to common shareholders | $126,348 | $22,736 | $200,285 | $529,157 |
INCOME PER COMMON SHARE - BASIC: | ||||
Income from continuing operations, net | 0.48 | 0.14 | 0.9 | 2.34 |
Income from discontinued operations, net | 0.22 | $0 | 0.27 | 0.98 |
Net income per common share | 0.7 | 0.14 | 1.17 | 3.32 |
INCOME PER COMMON SHARE - DILUTED: | ||||
Income from continuing operations, net | 0.47 | 0.14 | 0.89 | 2.27 |
Income from discontinued operations, net | 0.22 | $0 | 0.27 | 0.95 |
Net income per common share | 0.69 | 0.14 | 1.16 | 3.22 |
DIVIDENDS PER COMMON SHARE | 0.65 | 0.9 | 2.55 | 2.7 |
1_Consolidated Statements of In
Consolidated Statements of Income [Parentheticals] (USD $) | ||||
In Thousands | 3 Months Ended
Sep. 30, 2009 | 3 Months Ended
Sep. 30, 2008 | 9 Months Ended
Sep. 30, 2009 | 9 Months Ended
Sep. 30, 2008 |
Consolidated Statements of Income [Parentheticals] | ||||
Amortization of deferred financing costs | $4,350 | $4,257 | $12,722 | $13,181 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Equity (USD $) | |||
In Thousands | 9 Months Ended
Sep. 30, 2009 | 9 Months Ended
Sep. 30, 2008 | 12 Months Ended
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) | 239,650 | 569,210 | |
Dividends paid on common shares | (194,087) | (415,169) | |
Dividends paid on preferred shares | (42,809) | (42,819) | |
Proceeds from the issuance of common shares | 710,226 | ||
Deferred compensation shares and options | 11,529 | 8,495 | |
Common shares issued: | |||
Under employee share option plan | 765 | 20,278 | |
Upon redemption of redeemable Class A Operating Partnership units, at redemption value | 53,091 | 61,801 | |
In connection with dividend reinvestment plan | 1,755 | ||
Sale of securities available for sale | 6,128 | ||
Change in unrealized net loss on securities available for sale | 4,099 | (22,057) | |
Our share of partially owned entities' OCI adjustments | 11,846 | ||
Voluntary surrender of equity awards on March 31, 2009 | 32,588 | ||
Adjustments to redeemable Class A Operating Partnership units | (77,004) | (26,393) | |
Other | 3,362 | (24,420) | |
Balance | 6,967,908 | 6,148,049 | 6,011,240 |
Common Shares | |||
Balance (beginning) | 6,140 | ||
Cumulative effect of change in accounting principle | 0 | ||
Balance | 6,195 | 6,140 | |
Dividends paid on common shares | 230 | ||
Proceeds from the issuance of common shares | 690 | ||
Conversion of Series A preferred shares to common shares | 2 | ||
Deferred compensation shares and options | 2 | 43 | |
Common shares issued: | |||
Under employee share option plan | (14) | 22 | |
Upon redemption of redeemable Class A Operating Partnership units, at redemption value | 48 | 27 | |
Other | 0 | 0 | |
Balance | 7,151 | 6,234 | 6,140 |
Preferred Shares | |||
Balance (beginning) | 825,095 | ||
Cumulative effect of change in accounting principle | 0 | ||
Balance | 823,807 | 825,095 | |
Conversion of Series A preferred shares to common shares | (89) | (1,312) | |
Common shares issued: | |||
Other | 0 | 0 | |
Balance | 823,718 | 823,783 | 825,095 |
Additional Capital | |||
Balance (beginning) | 5,278,717 | ||
Cumulative effect of change in accounting principle | 212,395 | ||
Balance | 6,025,976 | 5,491,112 | |
Dividends paid on common shares | 236,920 | ||
Proceeds from the issuance of common shares | 709,536 | ||
Conversion of Series A preferred shares to common shares | 89 | 1,310 | |
Deferred compensation shares and options | 11,527 | 8,452 | |
Common shares issued: | |||
Under employee share option plan | 1,219 | 20,256 | |
Upon redemption of redeemable Class A Operating Partnership units, at redemption value | 53,043 | 61,774 | |
In connection with dividend reinvestment plan | 1,755 | ||
Voluntary surrender of equity awards on March 31, 2009 | 32,588 | ||
Adjustments to redeemable Class A Operating Partnership units | (77,004) | (26,393) | |
Other | (763) | (46) | |
Balance | 6,993,131 | 5,558,220 | 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) | 243,092 | 571,977 | |
Dividends paid on common shares | (431,237) | (415,169) | |
Dividends paid on preferred shares | (42,809) | (42,819) | |
Common shares issued: | |||
Under employee share option plan | (440) | ||
Other | 7 | 0 | |
Balance | (1,278,727) | (643,188) | (757,177) |
Accumulated Other Comprehensive Income (Loss) | |||
Balance (beginning) | 29,772 | ||
Cumulative effect of change in accounting principle | 0 | ||
Balance | (6,899) | 29,772 | |
Common shares issued: | |||
Sale of securities available for sale | 6,128 | ||
Change in unrealized net loss on securities available for sale | 4,099 | (22,057) | |
Our share of partially owned entities' OCI adjustments | 11,846 | ||
Other | 7,443 | (22,518) | |
Balance | 16,489 | (8,675) | 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) | (3,442) | (2,767) | |
Common shares issued: | |||
Other | (3,325) | (1,856) | |
Balance | $406,146 | $411,675 | $416,298 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (USD $) | ||
In Thousands | 9 Months Ended
Sep. 30, 2009 | 9 Months Ended
Sep. 30, 2008 |
Cash flows from operating activities: | ||
Net income | $271,900 | $639,112 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization (including amortization of debt issuance costs) | 413,697 | 437,567 |
Mezzanine loans loss accrual | 122,738 | 0 |
Equity in income of partially owned entities, including Alexander's and Toys | (115,817) | (70,490) |
Straight-lining of rental income | (75,702) | (63,184) |
Amortization of below market leases, net | (56,270) | (73,655) |
Write-off of unamortized costs from the voluntary surrender of equity awards | 32,588 | 0 |
Net gains on early extinguishment of debt | (26,996) | 0 |
Distributions of income from partially owned entities | 21,484 | 12,021 |
Reversal of H Street deferred tax liability | 0 | (222,174) |
Net gain on sale of Americold Realty Trust | 0 | (112,690) |
Write-off of real estate joint ventures' development costs | 0 | 34,200 |
Net loss on derivative positions | 0 | 25,812 |
Impairment losses - marketable securities | 0 | 20,881 |
Net gains on sale of real estate | (42,655) | (57,523) |
Net gains on dispositions of wholly owned and partially owned assets other than depreciable real estate | (4,432) | (8,546) |
Impairment losses on development projects and costs of acquisitions not consummated | 0 | 8,009 |
Amortization of discount on convertible and exchangeable senior debentures | 29,106 | 28,328 |
Other non-cash adjustments | 119 | 32,812 |
Changes in operating assets and liabilities: | ||
Accounts receivable, net | 11,611 | (8,825) |
Prepaid assets | (119,608) | (46,823) |
Other assets | (43,004) | (26,706) |
Accounts payable and accrued expenses | 70,511 | 88,973 |
Other liabilities | 217 | 10,510 |
Net cash provided by operating activities | 489,487 | 647,609 |
Cash flows from investing activities: | ||
Development costs and construction in progress | (384,655) | (413,947) |
Additions to real estate | (145,981) | (158,434) |
Restricted cash | 81,195 | (22,674) |
Investments in partially owned entities | (28,738) | (115,250) |
Proceeds from sales of real estate and related investments | 291,652 | 352,511 |
Proceeds received from repayment of notes and mortgage loans receivable | 46,339 | 52,032 |
Distributions of capital from partially owned entities | 13,112 | 182,090 |
Acquisitions of real estate and other | 0 | (36,566) |
Deposits in connection with real estate acquisitions | 1,000 | (10,616) |
Proceeds from sales of, and return of investment in, marketable securities | 59,873 | 47,723 |
Investments in notes and mortgage loans receivable | 0 | (7,397) |
Purchases of marketable securities | (11,597) | (8,035) |
Net cash used in investing activities | (77,800) | (138,563) |
Cash flows from financing activities: | ||
Proceeds from issuance of common shares | 710,226 | 0 |
Proceeds from borrowings | 1,208,204 | 1,424,458 |
Repayments of borrowings | (996,218) | (1,043,734) |
Dividends paid on common shares | (194,087) | (415,169) |
Distributions to noncontrolling interests | (30,291) | (65,925) |
Dividends paid on preferred shares | (42,809) | (42,841) |
Debt issuance costs | (9,246) | (13,399) |
Exercise of share options and other | 22 | 21,981 |
Purchase of outstanding Series G Preferred Units | (24,330) | 0 |
Net cash provided by (used in) financing activities | 621,471 | (134,629) |
Net increase in cash and cash equivalents | 1,033,158 | 374,417 |
Cash and cash equivalents at beginning of period | 1,526,853 | 1,154,595 |
Cash and cash equivalents at end of period | 2,560,011 | 1,529,012 |
Supplemental disclosure of cash flow information: | ||
Cash payments for interest (including capitalized interest of $14,054 and $49,241) | 461,802 | 463,458 |
Cash payments for income taxes | 6,880 | 6,153 |
Non-cash transactions: | ||
Adjustments to redeemable Class A Operating Partnership units | (77,004) | (26,393) |
Conversion of redeemable Class A Operating Partnership units to common shares, at redemption value | 53,091 | 61,801 |
Dividends paid in common shares | 237,150 | 0 |
Unit distributions paid in redeemable Class A Operating Partnership units | 20,072 | 0 |
Unrealized net (gain) loss on securities available for sale | ($4,099) | $22,057 |
2_Consolidated Statements of Ca
Consolidated Statements of Cash Flows [Parentheticals] (USD $) | ||
In Thousands | 9 Months Ended
Sep. 30, 2009 | 9 Months Ended
Sep. 30, 2008 |
Consolidated Statements of Cash Flows [Parentheticals] | ||
Capitalized interest | $14,054 | $49,241 |
Organization
Organization | |
9 Months Ended
Sep. 30, 2009 USD / shares | |
Organization | |
Organization [Text Block] | 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 92.1% of the common limited partnership interest in the Operating Partnership at September 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. |
Basis of Presentation
Basis of Presentation | |
9 Months Ended
Sep. 30, 2009 USD / shares | |
Basis of Presentation | |
Basis of Presentation [Text Block] | 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 and 10-K/A for the year ended December31, 2008, as filed with the SEC. The results of operations for the three and nine months ended September 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, as defined by GAAP, or (ii) when we are a general partner and meet certain criteria under GAAP. 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 revenues and expenses during the reporting periods. Actual results could differ from those estimates. Effective July 1, 2009, the Financial Accounting Standards Board ("FASB") established the Accounting Standards Codifcation ("ASC") as the primary source of authoritative GAAP recognized by the FASB to be applie |
Recently Issued Accounting Lite
Recently Issued Accounting Literature | |
9 Months Ended
Sep. 30, 2009 USD / shares | |
Recently Issued Accounting Literature | |
Recently Issued Accounting Literature [Text Block] | 3. Recently Issued Accounting Literature In December 2007, the FASB issued an update to ASC 805, Business Combinations. The amended guidance contained in ASC 805 applies 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. The amended guidance also expands required disclosures to improve the ability to evaluate the nature and financial effects of business combinations. The amended guidance became effective for all transactions entered into on or after January 1, 2009. The adoption of this guidance 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 an update to ASC 810, Consolidation. The amended guidance contained in ASC 810 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. It 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. The amended guidance became effective on January 1, 2009 and 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 an update to ASC 815, Derivatives and Hedging. The amended guidance contained in ASC 815 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 and the impact of derivative instruments and related hedged items on an entitys financial position, financial performance and cash flows. It also provided a new two-step model to be applied in determining whether a financial instrument or an embedded feature is indexed to an issuers own stock. The amended guidance became effective on January 1, 2009. The adoption of this guidance on January 1, 2009 did not have a material effect on our consolidated financial statements. In June 2008, the FASB issued an update to ASC 260, Earnings Per Share. The amended guidance contained in ASC 260 requires companies to treat unvested share-based payment awards that contain non-forfeitable rights to dividends or dividend equivalents as participating secu |
Fair Value Measurements
Fair Value Measurements | |
9 Months Ended
Sep. 30, 2009 USD / shares | |
Fair Value Measurements | |
Fair Value Measurements [Text Block] | 4.Fair Value Measurements ASC 820, Fair Value Measurement and Disclosures defines fair value and establishes a framework for measuring fair value. The objective of fair value is to determine the price that would be received upon the sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (the exit price). ASC 820 establishes a fair value hierarchy that prioritizes observable and unobservable inputs used to measure fair value into three levels: Level 1 quoted prices (unadjusted) in active markets that are accessible at the measurement date for assets or liabilities; Level 2 observable prices that are based on inputs not quoted in active markets, but corroborated by market data; and Level 3 unobservable inputs that are used when little or no market data is available. The fair value hierarchy gives the highest priority to Level 1 inputs and the lowest priority to Level 3 inputs. In determining fair value, we utilize valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible as well as consider counterparty credit risk in our assessment of fair value. Financial assets and liabilities measured at fair value in our consolidated financial statements consist primarily of (i) marketable equity securities and (ii) the assets of our deferred compensation plan (primarily marketable equity 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 September 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 $ 85,717 $ 85,717 $ $ Deferred compensation plan assets 76,777 39,554 37,223 Total assets $ 162,494 $ 125,271 $ $ 37,223 Mandatorily redeemable instruments (included in other liabilities) $ 59,762 $ 59,762 $ $ 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 and nine months ended September 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 September 30, 2009 $ 36,168 $ 688 $ 367 $ 37,223 For the nine months ended September 30, 2009 $ 34,176 $ 1,998 $ 1,049 $ 37,223 We have estimated the fair value of all financial instruments reflected in the accompanying consolidated balance sheets at amounts which are based upon an interpretation of available market information and valuation met |
Investments in Partially Owned
Investments in Partially Owned Entities | |
9 Months Ended
Sep. 30, 2009 USD / shares | |
Investments in Partially Owned Entities | |
Investments in Partially Owned Entities [Text Block] | 5. Investments in Partially Owned Entities Toys R Us (Toys) As of September 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 September 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 August 1, 2009 As of November 1, 2008 Total assets $ 11,449 $ 12,410 Total liabilities $ 9,999 $ 11,393 Toys stockholders equity $ 1,341 $ 929 For the Three Months Ended For the Nine Months Ended Income Statement: August 1, 2009 August 2, 2008 August 1, 2009 August 2, 2008 Total revenues $ 2,567 $ 2,771 $ 10,505 $ 11,317 Net income (loss) attributable to Toys $ 62 $ (31 ) $ 304 $ 113 Alexanders (NYSE: ALX) As of September 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 September 30, 2009 and December 31, 2008, Alexanders owed us $57,197,000 and $44,086,000, respectively, in fees under these agreements. Based on Alexanders September 30, 2009 closing share price of $295.88, the market value (fair value pursuant toASC 820) of our investment in Alexanders is $489,406,000, or $302,134,000 in excess of the carrying amount on our consolidated balance sheet. As of September 30, 2009, the carrying amount of our investment in Alexanders exceeds our share of the equity in the net assets of Alexanders by approximately $35,249,000. 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 real estate (land and buildings). We are amortizing the basis difference related to the buildings into earnings as additional depreciation expense over their estimated useful lives. This depreciation is not material to our share of equity in 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 September 30, 2009, we own 18,468,969 Lexington common shares, or approximately 16.1% of Lexingtons common equity. We account for our investment in Lexington under the equity method because we believe we have the ab |
Mezzanine Loans Receivable
Mezzanine Loans Receivable | |
9 Months Ended
Sep. 30, 2009 USD / shares | |
Mezzanine Loans Receivable | |
Mezzanine Loans Receivable [Text Block] | 6. Mezzanine Loans Receivable The following is a summary of our investments in mezzanine loans as of September 30, 2009 and December 31, 2008. (Amounts in thousands) Interest Rate as of Carrying Amount as of Mezzanine Loans Receivable: Maturity September 30, 2009 September 30, 2009 December 31, 2008 Equinox 02/13 14.00% $ 95,325 $ 85,796 Tharaldson Lodging Companies 04/10 (1) 4.49% 75,573 76,341 Riley HoldCo Corp 02/15 10.00% 74,438 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 5.86%-12.00% 73,628 120,475 392,714 472,539 Valuation allowance (3) (122,738 ) $ 269,976 $ 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. |
Discontinued Operations
Discontinued Operations | |
9 Months Ended
Sep. 30, 2009 USD / shares | |
Discontinued Operations | |
Discontinued Operations [Text Block] | 7. Discontinued Operations On September 1, 2009, we sold 1999 K Street, a newly developed 250,000 square foot office building, in Washingtons Central Business District, for $207,800,000 in cash, which resulted in a net gain of $41,211,000. Accordingly, during the third quarter of 2009, we classified this property as a discontinued operation. In addition, we have classified the revenues and expenses of other properties sold or to be sold as income from discontinued operations and the related assets and liabilities as assets related to discontinued operations and liabilities related to discontinued operations for all periods presented in the accompanying consolidated financial statements. The tables below set forth the assets and liabilities related to discontinued operations at September 30, 2009 and December 31, 2008, and the combined results of operations related to discontinued operations for the three and nine months ended September 30, 2009 and 2008. (Amounts in thousands) Assets related to Discontinued Operations as of Liabilities related to Discontinued Operations as of September 30, 2009 December 31, 2008 September 30, 2009 December 31, 2008 H Street land under sales contract $ 108,151 $ 108,292 $ $ 1999 K Street 124,402 73,747 Retail properties 48,416 Total $ 108,151 $ 281,110 $ $ 73,747 (Amounts in thousands) For the Three Months Ended September 30, For the Nine Months Ended September 30, 2009 2008 2009 2008 Revenues $ 1,356 $ 1,077 $ 9,846 $ 225,620 Expenses 690 343 3,225 223,019 Net income 666 734 6,621 2,601 Net gain on sale of 1999 K Street 41,211 41,211 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 Net gains on sale of other real estate 1,444 112 1,444 692 Income from discontinued operations $ 43,321 $ 846 $ 49,276 $ 172,814 |
Identified Intangible Assets an
Identified Intangible Assets and Intangible Liabilities | |
9 Months Ended
Sep. 30, 2009 USD / shares | |
Identified Intangible Assets and Intangible Liabilities | |
Identified Intangible Assets and Intangible Liabilities [Text Block] | 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 September 30, 2009 and December 31, 2008. Balance as of (Amounts in thousands) September 30, 2009 December 31, 2008 Identified intangible assets (included in other assets): Gross amount $ 768,364 $ 780,476 Accumulated amortization (304,309 ) (257,757 ) Net $ 464,055 $ 522,719 Identified intangible liabilities (included in deferred credit): Gross amount $ 955,651 $ 998,179 Accumulated amortization (303,350 ) (278,357 ) Net $ 652,301 $ 719,822 Amortization of acquired below-market leases, net of acquired above-market leases resulted in an increase to rental income of $18,728,000 and $24,526,000 for the three months ended September 30, 2009 and 2008, respectively, and $56,270,000 and $73,655,000 for the nine months ended September 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 $ 63,104 2011 58,966 2012 54,771 2013 46,798 2014 40,995 Amortization of all other identified intangible assets (a component of depreciation and amortization expense) was $15,698,000 and $21,207,000 for the three months ended September 30, 2009 and 2008, respectively, and $49,262,000 and $65,417,000 for the nine months ended September 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 $ 55,898 2011 53,264 2012 48,828 2013 41,651 2014 23,577 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 $1,599,000 in each of the three-month and nine-month periods ended September 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 |
Debt
Debt | |
9 Months Ended
Sep. 30, 2009 USD / shares | |
Debt | |
Debt [Text Block] | 9. Debt The following is a summary of our debt: (Amounts in thousands) Balance at Notes and mortgages payable: Maturity (1) Interest Rate at September 30, 2009 September 30, 2009 December 31, 2008 Fixed rate: New York Office: 1290 Avenue of the Americas 01/13 5.97% $ 437,210 $ 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% 283,748 287,386 909 Third Avenue 04/15 5.64% 211,540 214,074 Eleven Penn Plaza 12/11 5.20% 204,114 206,877 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% 113,992 115,440 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% 86,401 87,721 1550 and 1750 Crystal Drive 11/14 7.08% 82,399 83,912 Universal Buildings (2) 04/14 6.33% 107,553 59,728 1235 Clark Street 07/12 6.75% 53,479 54,128 2231 Crystal Drive 08/13 7.08% 49,054 50,394 1750 Pennsylvania Avenue 06/12 7.26% 46,057 46,570 241 18th Street 10/10 6.82% 45,860 46,532 2011 Crystal Drive (3) 8/17 7.30% 82,436 38,338 1225 Clark Street 08/13 7.08% 29,342 30,145 1800, 1851 and 1901 South Bell Street 12/11 6.91% 21,524 27,801 Retail: Cross-collateralized mortgages on 42 shopping centers (4) 03/10 7.86% 394,876 448,115 Springfield Mall (including present value of purchase option) 10/12-04/13 5.45% 249,683 252,803 Montehiedra Town Center 07/16 6.04% 120,000 120,000 Broadway Mall 07/13 5.40% 93,183 94,879 828-850 Madison Avenue Condominium 06/18 5.29% 80,000 80,000 Las Catalinas Mall 11/13 6.97% 59,680 60,766 Other 12/10-05/36 4.75%-7.33% 157,452 159,597 Merchandise Mart: Merchandise Mart 12/16 5.57% 550,000 550,000 High Point Complex 09/16 6.34% 218,475 220,361 Boston Design Center 09/15 5.02% 69,943 70,740 Washington Design Center 11/11 6.95% 44,440 44,992 Other: 555 California Street (5) 05/10-09/11 5.94% 663,545 720,671 Industrial Warehouses 10/11 6.95% 24,956 25,268 Total fixed interest notes and mortgages payable 5.97% 7,056,764 7,117,727 _____________________ See notes on page 22. |
Redeemable Noncontrolling Inter
Redeemable Noncontrolling Interests | |
9 Months Ended
Sep. 30, 2009 USD / shares | |
Redeemable Noncontrolling Interests [Abstract] | |
Redeemable Noncontrolling Interests [Text Block] | 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 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 September 30, 2009 and December 31, 2008, the aggregate value of the redeemable noncontrolling interests was $1,212,765,000 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 69,844 Distributions (56,445 ) Conversion of Class A redeemable units into common shares, at redemption value (61,801 ) Mark-to-market adjustments on Class A redeemable units 26,393 Other, net 19,812 Balance at September 30, 2008 $ 1,656,106 Balance at December 31, 2008 $ 1,177,978 Net income 32,250 Distributions (31,313 ) Conversion of Class A redeemable units into common shares, at redemption value (53,091 ) Mark-to-market adjustments on Class A redeemable units 77,004 Other, net 9,937 Balance at September 30, 2009 $ 1,212,765 Redeemable noncontrolling interests exclude our Series G convertible preferred units and Series D-13 cumulative redeemable preferred units, as they are accounted for as liabilities in accordance with GAAP, 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 $59,762,000 and $83,079,000 as of September 30, 2009 and December 31, 2008, respectively. On October 30, 2009, all of the Series B convertible preferred units were redeemed by us in exchange for 139,798 Class A units. |
Income Per Share
Income Per Share | |
9 Months Ended
Sep. 30, 2009 USD / shares | |
Income Per Share | |
Income Per Share [Text Block] | 11. Income Per Share During 2009, we paid a portion of our common dividends in Vornado common shares. Consequently, we have included the 5,736,000 newly issued common shares in the computation of income per share retroactively for the three and nine months ended September 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 September 30, For The Nine Months Ended September 30, 2009 2008 2009 2008 Numerator: Income from continuing operations, net of income attributable to noncontrolling interests $ 100,518 $ 36,171 $ 197,038 $ 415,253 Income from discontinued operations, net of income attributable to noncontrolling interests 40,099 836 46,054 156,724 Net income attributable to Vornado 140,617 37,007 243,092 571,977 Preferred share dividends (14,269 ) (14,271 ) (42,807 ) (42,820 ) Net income attributable to common shareholders 126,348 22,736 200,285 529,157 Earnings allocated to unvested participating securities (38 ) (80 ) (147 ) (242 ) Numerator for basic income per share 126,310 22,656 200,138 528,915 Impact of assumed conversions: Convertible preferred share dividends 43 145 Numerator for diluted income per share $ 126,353 $ 22,656 $ 200,138 $ 529,060 Denominator: Denominator for basic income per share weighted average shares 179,422 159,761 171,620 159,405 Effect of dilutive securities (1): Employee stock options and restricted share awards 2,213 4,663 1,558 4,609 Convertible preferred shares 75 85 Denominator for diluted income per share weighted average shares and assumed conversions 181,710 164,424 173,178 164,099 INCOME PER COMMON SHARE BASIC: Income from continuing operations, net $ 0.48 $ 0.14 $ 0.90 $ 2.3 |
Comprehensive Income
Comprehensive Income | |
9 Months Ended
Sep. 30, 2009 USD / shares | |
Comprehensive Income | |
Comprehensive Income [Text Block] | 12. Comprehensive Income (Amounts in thousands) For The Three Months Ended September 30, For The Nine Months Ended September 30, 2009 2008 2009 2008 Net income $ 155,844 $ 43,547 $ 271,900 $ 639,112 Other comprehensive income (loss) 52,340 19,656 23,388 (38,447 ) Comprehensive income 208,184 63,203 295,288 600,665 Comprehensive income attributable to noncontrolling interests (19,257 ) (8,329 ) (30,796 ) (63,598 ) Comprehensive income attributable to Vornado $ 188,927 $ 54,874 $ 264,492 $ 537,067 Substantially all of the other comprehensive income (loss) for the three and nine months ended September 30, 2009 and 2008 relates to 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). |
Fee and Other Income
Fee and Other Income | |
9 Months Ended
Sep. 30, 2009 USD / shares | |
Fee and Other Income | |
Fee And Other Income [Text Block] | 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 September 30, For The Nine Months Ended September 30, 2009 2008 2009 2008 Tenant cleaning revenue $ 14,514 $ 13,627 $ 43,372 $ 41,431 Management and leasing fees 2,837 2,518 8,255 10,326 Lease termination fees 1,608 1,455 4,356 4,469 Other income 12,676 13,155 42,301 33,830 $ 31,635 $ 30,755 $ 98,284 $ 90,056 Fee and other income above include management fee income from InterstateProperties, a related party, of $197,000 and $196,000 for the three months ended September 30, 2009 and 2008, respectively, and $578,000 and $604,000 for the nine months ended September 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). |
Stock-based Compensation
Stock-based Compensation | |
9 Months Ended
Sep. 30, 2009 USD / shares | |
Stock-based Compensation | |
Stock-based Compensation [Text Block] | 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 GAAP. Stock based compensation expense for the three months ended September 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 nine months ended September 30, 2009, we recognized $5,639,000 and $21,539,000 of stock-based compensation expense, respectively. During the three and nine months ended September 30, 2008 we recognized $8,789,000 and $25,762,000 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. |
Commitments and Contingencies
Commitments and Contingencies | |
9 Months Ended
Sep. 30, 2009 USD / shares | |
Commitments and Contingencies | |
Commitments and Contingencies [Text Block] | 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 February 15, 2011. 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 September 30, 2009, there were $39,282,000 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 principa |
Retirement Plans
Retirement Plans | |
9 Months Ended
Sep. 30, 2009 USD / shares | |
Retirement Plans | |
Retirement Plans [Text Block] | 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 nine months ended September 30, 2009. |
Impairment losses on Developmen
Impairment losses on Development Projects and Costs of Acquisitions Not Consummated | |
9 Months Ended
Sep. 30, 2009 USD / shares | |
Impairment losses on Development Projects and Costs of Acquisitions Not Consummated | |
Impairment losses on Development Projects and Costs of Acquisitions Not Consummated [Text Block] | 17. Impairment losses on Development Projects and Costs of Acquisitions Not Consummated During the three months ended September 30, 2008, we recognized a $5,000,000 non-cash impairment charge to write down the carrying amount of land held for development to its fair value. During the first and second quarters of 2008, we wrote-off an aggregate of $3,009,000 of costs associated with acquisitions not consummated (primarily Hudson Rail Yards). |
Marketable Securities
Marketable Securities | |
9 Months Ended
Sep. 30, 2009 USD / shares | |
Marketable Securities | |
Marketable Securities [Text Block] | 18. Marketable Securities At September 30, 2009 and December 31, 2008, we had $4,099,000 of net unrealized gains and $2,061,000 of net unrealized losses, respectively, on our marketable equity securities. During 2008, we concluded that certain of the investments in our marketable equity securities portfolio were other-than-temporarily impaired; accordingly, we recognized non-cash impairment charges, aggregating $20,881,000, of which $9,073,000 and $11,808,000 were recognized in the first and third quarters of 2008, respectively. Our conclusions were based on the severity of the declines in the market value of those securities and our inability to forecast a recovery in the near-term. The following table sets forth the details of our marketable securities: As of September 30, 2009 As of December 31, 2008 (Amounts in thousands) Carrying Amount Fair Value Carrying Amount Fair Value Marketable equity securities $ 85,717 $ 85,717 $ 118,438 $ 118,438 Debt securities held-to-maturity 227,501 242,848 215,884 164,728 $ 313,218 $ 328,565 $ 334,322 $ 283,166 |
Segment Information
Segment Information | |
9 Months Ended
Sep. 30, 2009 USD / shares | |
Segment Information | |
Segment Information [Text Block] | 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 nine months ended September 30, 2009 and 2008. (Amounts in thousands) For the Three Months Ended September 30, 2009 Total New York Office Washington, DC Office Retail Merchandise Mart Toys Other (3) Property rentals $ 509,968 $ 189,896 $ 137,139 $ 91,286 $ 52,269 $ $ 39,378 Straight-line rents: Contractual rent increases 16,676 10,126 3,573 2,827 135 15 Amortization of free rent 4,682 (98 ) 2,760 1,963 19 38 Amortization of acquired below- market leases, net 18,728 10,710 1,069 4,826 30 2,093 Total rentals 550,054 210,634 144,541 100,902 52,453 41,524 Tenant expense reimbursements 89,530 36,360 14,892 32,121 3,661 2,496 Fee and other income: Tenant cleaning revenue 14,514 20,661 (6,147 ) Management and leasing fees 2,837 1,269 1,984 557 11 (984 ) Lease termination fees 1,608 1,226 234 9 139 Other 12,676 3,182 4,979 648 3,461 406 Total revenues 671,219 273,332 166,630 134,228 59,595 37,434 Operating expenses 265,952 117,362 57,889 49,304 26,469 14,928 Depreciation and amortization 130,503 42,621 35,187 24,091 13,654 14,950 General and administrative 51,684 4,895 6,079 6,802 7,198 26,710 Total expenses 448,139 164,878 99,155 80,197 47,321 56,588 Operating income (loss) 223,080 108,454 67,475 54,031 12,274 (19,154 ) Income applicable to Alexanders 21,297 192 187 20,918 Income applicable to Toys 22,077 22,077 (Loss) income from partially owned entities (18,784 ) 1,454 1,876 580 26 (22,720 ) Interest and other investment income, net 20,486 190 254 10 12 20,020 Interest and debt expense (158,205 ) (33,644 ) (32,454 ) (22,315 ) (13,088 ) (56,704 ) Net gains of early extinguishment of debt 3,407 3,407 Net gains on disposition of wholly owned and partially owned assets other than depreciable real estate 4,432 4,432 Income (loss) before income taxes 117,790 76,646 37,151 32,493 (776 ) 22,077 (49,801 ) Income tax expense (5,267 ) (585 ) (44 ) (39 ) (847 ) (3,752 ) Income (loss) from continuing operations 112,523 76,061 37,107 32,454 (1,623 ) 22,077 (53,553 ) Income from discontinued operations 43,321 41,992 1,329 Net income (loss) 155,844 76,061 79,099 33,783 (1,623 ) |
Document Information
Document Information | |
9 Months Ended
Sep. 30, 2009 USD / shares | |
Document Information [Line Items] | |
Document Type | 10-Q |
Amendment Flag | false |
Document Period End Date | 2009-09-30 |
Entity Information
Entity Information (USD $) | |
9 Months Ended
Sep. 30, 2009 | |
Entity Information [Line Items] | |
Entity Registrant Name | VORNADO REALTY TRUST |
Entity Central Index Key | 0000899689 |
Current Fiscal Year End Date | --12-31 |
Entity Filer Category | Large Accelerated Filer |
Entity Listings [Line Items] | |
Entity Common Stock, Shares Outstanding | 179,523,984 |