Alexander's (ALX) 2 May 232023 Q1 Earnings call transcript

Company Profile

Participants

Steven Borenstein	executive
Steven Roth	executive
Michael Franco	executive
Steve Sakwa	analyst
Glen Weiss	executive
Alexander Goldfarb	analyst
Michael Griffin	analyst
John Kim	analyst
Camille Bonnel;Bank of America Securities;Analyst	analyst
Julien Blouin	analyst
Daniel Ismail	analyst
Derek Johnston	analyst
Vikram Malhotra	analyst
Anthony Paolone	analyst
Nicholas Yulico	analyst
Ronald Kamdem	analyst

Call transcript

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Operator

Good morning, and welcome to the Vornado Realty Trust First Quarter 2023 Earnings Call. My name is Sarah, and I will be your operator for today's call. This call is being recorded for replay purposes. [Operator Instructions] I will now turn the call over to Mr. Steve Borenstein, Senior Vice President and Corporate Counsel. ahead. go Please

Steven Borenstein

and Realty available we Reconciliations Vornado call, documents filed will Quarter Call. the financial section. the Earnings quarterly well Relations these Form documents during in be Welcome uncertainties our Investor our to due measures materially measures. as financial most our Trust's during website financial forward-looking first and comparable GAAP we afternoon, supplemental Securities with of included statements XX-Q variety the this a Please non-GAAP issued on packages are and these directly be Commission. differ deemed from quarter Yesterday today's These report our as statements, certain are to information Form discuss these First made Exchange on other earnings In of may our aware under and risks, release www.vno.com factors. that supplement. XX-Q and statements to call may measures actual release, earnings and results

refer Exchange risks report statements. may not Commission, the to The for undertake for including Securities forward-looking uncertainties. XX, more information these call time-sensitive does to be may and as that only of and information the today's XXXX, The any annual Form XX-K regarding on with include our our accurate company update Please ended year December filings date. duty a

Chairman and Officer. Officer; call management Financial comments Executive from Steven for Chief today the Roth, Michael opening On and Franco, our and Chief President are

available Our Roth. call I to will senior questions. now for the and over team also turn Steven present is

Steven Roth

good and morning Steve, Thank everyone. you, to

out things a get me of the few way Let first.

performing well is business in this environment. Our

last since changed hasn't outlook quarter. Our

feet have X PENN our total is over in Any we incorrect in that just or industry ahead current speed comment stopped on silly. million full newspapers are the the and plain We tabloids District. projects, square

X or block site go through at look when [indiscernible]. Station PENN long a next next go Just through take construction a our you

on Simply commentary week's going and there release too. some Now reaction are we office. last stated, press dividend on

again. me that Let say

facts dividends. office. We cash. on $XXX our going about million context. for dividend A know are XXXX, We few was $X.XX in or In

Over paid, Last REIT dividends an and billion million have I another regular in $X.X of week, sacred, in and sort years, dividends. guess and dividends I $XXX analyst agree. the past happily special agree, as XX we paid I characterize well,

we already $XX have For million a dividend. year, or quarter this cash $X.XXX paid first

will pay et pause income, in taxable cash known quarters. We based to is cash out dividends the or will and reassess appropriate upon And combination a actual paying fourth whether pay cetera, in we third facts we as must, and wise sales, script. or it asset including the quarter, in we'll taxable second in of income, but

cash, script, that if or be cash whether by indifferent wisely be they corporation, debt receive to should or but might Shareholders retained stock more whatever. buybacks for the employed as management,

of the you know, analysts years, buybacks resisting, NAV in for most from industry gap." years As sister and to pounding resisted companies copycatting resisting the "close I have and

quarter's dividend last to announcement, declined dividend our has stock and announcement our an buyback program. in even in share to million our create included shareholder value $XXX opportunity press stock a last lower an as authorized Wednesday, the level. Seeing Board our value since release, low to a price fact resistance from based. quarter's logical I this believe level But was dividend XX%

We the even or asset the paying buyback will measured from cash sales way, from carefully funding and in retained script. a proceed dividend in

FFO not sized on taxable our based earnings. Since dividend income, is

primarily increased any XXXX projected taxable sales. be and $X.XX between difference asset is income was and is at math. a rates. the will XXXX dividend. without Here asset taxable XXXX dividend. taxable $X.XX interest versus $X.XX a $X.XX XXXX is versus income surely, $X.XX The currently sales income was there taxable income XXXX

back A We office. are now home. More matter before their we back couple the and in we just And With employees from seen have each like more XXXX. time it's buildings work requiring more CEOs of the other week, office a believe for to the everyone of feel comments. think is peak passing good.

seems leading regard. New the this country York in City to be

cash to bills. stocks Lastly, billion] and is viability financial crushed, with had $X.X office, liquidity. billion all about CBD of office position of I'm including having great $X.X it our concern been the [We future and our of treasury important liquidity, review

has will capital cash over will PENNX unencumbered PENNX, future balances. have markdown and today's for that with Farley rents well-laddered buildings at significant metrics. unencumbered. prefunded income to do PENNX debt is level wonders primarily nonrecourse billion on old-fashioned up, PENNX $X X.X% assets. debt embedded program mortgages. We remaining as paid earnings for of have values and Only recourse These our growth. rely debt, be incremental our that project debt-free We of all The of been complete and are out And maturities.

are the X% and eye We financial X%, when or an rolls to is even pretty market. X% It clear not about market X% near-term challenges. over realistic debt

over certainly years. that of will debt. the few But next a workouts We is have point nonrecourse of the to deal with having couple

line corporate current our capacity We we in have and XX limited next this have matures maturities property finance maturities on don't December in hostile the no level sufficient year year, XXXX that no to that in maturities so market. and with

to Thank the you. And financials the now over market. and to cover Michael

Michael Franco

morning, everyone. Thank and good you, Steve,

primarily more difficult effect down the environment current we XXXX provided makes be known a from decent totaling and impact economic than forecasting our said items any call, we of to the earnings rising During expect assumption, absent FFO impact the Though $X.XX of of rates. certain remains usual, this sales. that asset comparable the from interest XXXX last a reduction,

to rates. $X.XX as first This expected, year's of $X.XX adjusted increased from $X.XX As compared quarter, was by for XX.X%. was quarter last primarily net decrease higher per interest expense first driven comparable share or a decrease FFO

X.X% first cash same-store first for NOI over by quarter. company-wide prior Our quarter year's increased the the

in and financial release a provided supplement. our in earnings have our quarter-over-quarter We bridge

office core credit leases. retail resilient remain with Our businesses and long-term

at we for new Now Leasing turning has interest of by their financial to XX% the encouraged markets. recessionary million been financial industries, law X.X activity rate the and level traditional backdrop demand has and footprint firms of services now of with much leased remain the declined trophy concerns, quarter. growing largely availability accounting particular, of by many The volatility firms, the properties year-to-date. level with rents. first square leasing strong the and newly feet led Amidst of constructed space absorbed activity record in in substantially from rate

Class well up amenitized, have that the transportation near which in market are redeveloped strong resulting A buildings highest the buildings. sponsorship in in the Midtown Tenants these are in on focused increasingly in moving side, on is rents West quality our and

retain is believe environment well these Our them of office. will are help buildings. back that Companies for as attract their office filled the talent portfolio right types work pay as they clearly motivate willing with to the and more to employees

While market, there concessions large deal lagging activity solid requirement and is flow remain the in is stubbornly high.

portfolio, rents. and completed Park a statistics, building metrics, with XXX,XXX XX full deal our exclude our during healthy first feet positive per rents strong our $XX from deal XXX of leases XX,XXX X.X% foot at with If rents XXX,XXX totaling $XXX cash the a square we starting very XXX,XXX and totaling X.X% square mark-to-market leases our at $XX at square Citadel square with completed team starting Avenue Citadel at and XX starting feet on Focusing cash including of foot mark-to-market quarter, This square feet at PENNX GAAP. we included the XX.X%.

stream steady now reflecting We in $XXX tower with attraction are continuing in PENNX tenant's amenity new in floors, to ever-increasing the we at XXs the momentum in good experience unique a to at of high and PENN reaching the location successful the offering the have leases most the in square foot buildings District per rents, city.

now. activity nearing is many project as is picking higher appreciate Overall, better PENNX product. up Tour activity our we rents good well very tenants of generally of can assets, and year the at a with ago. have than redeveloped completion, The

in remains leasing New Our pipeline healthy. York

activity feet leases The X.X negotiation, of be to it in I'll active. have continues sector square an that, Q&A. significant With leasing feet for additional XXX,XXX next. we move-outs this in square financial year at where in turn than more of plus operator particular, is this have our pipeline. and Much over We the million buildings to

Operator

question Our first with Evercore. from Instructions] Steve comes [Operator Sakwa

Steve Sakwa

really Steve, just could the talk is I mean just buildings when on that point? the thing Or I color on as the only the comments appreciate dividend the Or there. and buybacks? sure want potentially table make is does well? this buyback offense, really on going buying at include that about additional to you

Steven Roth

in is -- Buybacks stock. buying back are value our much the best

$X,XXX a tails relation and buying will the that focus our a If $XXX building building at to foot, see used stock. a in the on of a we we foot we potential that expense stock be in that for our value there. So buy to here

Steve Sakwa

to Great. the if the of leasing year? And at sort guess, renovation you're sort rents wondering the the PENNX. triple-digit between getting to PENNX of at getting did tenants of sounds this was follow-up, you just maybe like the PENNX. nears about at about of as kind talked as and leases some a talk you by And curious, when getting on with the that completion holdup you redevelopment. could I secured signed just dynamics Michael, closer I project traction then getting I'm you what's PENNX, in PENNX really It end are Or good

Glen Weiss

Steve, it's Glen.

piercing technology is strengthening So accounting, financial is great on tenants, activity Leasing yes, now rents really $XXX. fire. consulting and PENNX are week-to-week,

PENNX And PENNX really, to we're better pleased it in better, project month-to-month, And seamlessly looking how coming So PENNX the delivering. PENNX an action. really flows the that continues product the better, as is amazing we're is unfurls is strengthen, along. and activity as

PENNX. we out at getting looking who So have tenants of now are PENNX, boxed

the ever with at one X-floor The activities, Our tour lease. will has. some best single market. right It than is is in no perfect higher PENNX, the activity. is large with transportation available location. double some is It It building in amenities else activity a product now like

and confident product, to leasing-wise. the look we success So forward in we're great supremely

Steven Roth

Hang one on moment. for

You lease turned prospects, earlier, should X them [indiscernible] floors, down. we the important know and to floors of the to that companies, different opportunity had half we the [Indiscernible] but

building will Glen and the great we So the lease. building, have deal of as confidence a product says, in the

Operator

question next Sandler. comes Alexander with Piper Our Goldfarb from

Alexander Goldfarb

So two questions.

First, else company, Steve, you dividend sort the call, and right, environment in of the months few guys then same. quarter has the resize to guys suspend to And to decided the you needs a you up of the later, capital did. the third everything potential outlined Obviously, leasing, recently, the it. office remained the stayed which your rate

suspending then view, the in dividend changed I'm changed to view same. $X.XXX all to seem between of what to Board's balance deciding just $X.XX trying what quarterly and macro the out the the the from be fundamentals leasing to because and your it? figure So to the sheet resize the

Steven Roth

years going that avoiding decided Alex, an we thing even level. of actually, was to stock buying my that that lots consider and back decided reasons, heads went We good from, correct. The down and for really back put only we level remarks, that move. that low stock. from to changed we years very Nothing be And our we back as a were after an you're stock now. changed. the stock I in our of decided offensive to together time buy buying logical said XX% lower We was financial

We think We back stock. calling is think I'm that resources to point. buying the What value saying financial first devote the it's I is there. am -- bottom. way, not going by is company our to that's a the So

the So thing, that's and announced first it. we

to thought a press little us it for was a nonetheless, in dividend that a they together. way, stock payer. but They the announce we By matched awkward buyback a release, were

that back consider that's the very be and move, offensive we're an to to excited We're about buy stock. So going stock. it. We

do income is next Now taxable is are the and is around. [Indiscernible]. Well, that question dividend, the changing. moving first get the buy where we question Things the the resources to

the be cannot income we yet will yet. the selling what asset We how we just don't be, know taxable much them. assets will predict We presumably, -- sales be from will have

that's first thing. So the

will X we actually the The that consider at be a the we dividend that deal. the end postponing as the second of the you suspending but we for must, these dividend dividend to don't. do, the don't but or is announced in Maybe quarters big of dividends year we I pay

must the the we appropriate will We quarter, and dividend fourth is. in pay pay dividend will as in whatever the we size the

one So that's unknown.

cash and in either announced in pay combination a it The second unknown script. is we we cash would that of or

think dividend I but exactly retaining it's of that believe stock saying prediction, we will same. making We being that option. the shareholder and indifferent. a that received be not script. not I'm should impossible pay the Why? are dividend we lieu a that cash the in It's I'm

You turn cash, into can and the stock et it sell cetera.

let's the perhaps believe When did issuing for the and the and is minute to time round pro minute exactly not they of not their rata. we they Everybody percentage -- same We're dividend the the get of ownership going that So by company cash has in the because spend stock. company, and room be in in that a that after our we're the get in room percentage on, in it's stock a discriminate people because it is percentage for the stock back to be the lieu and just before this. isn't of council dividend, increase issuing no, we reduce the board buying humorous, is think however, the significant to is ownership to or will make about but that a circular? And buyback, round stock, sort amount ownership sell in company. way, and going their decision going a sell stock answer to our of

the buybacks and in of will of part in anyway, pay that the as the it if dividend a it part way the we a matter will And cash that year stock, size year, fact the we to funding long or will So whether all pay make to that's -- to cash go is or stock. determination whatever. we at

So right it's we our thinking, mean actually, that's thing our think, thinking. I offensive, and do. the to

Alexander Goldfarb

Yes, that segues next question. into the

it but you've few your a the not your obviously, you mean, did help, seen do at look buyback. billion balance a when have this that later Hudson buybacks swaps evidence I we like there's billion. expire of looks of sheet, [Indiscernible] lot I a where year. $X.X So debt mean,

that question is, Michael, these includes spent be my off? down And that swaps last burning million swaps debt? wouldn't said Or or year year, are better this incremental burning you the these $X.XX down the $XXX So that to be off paying would versus in that?

Michael Franco

-- is swaps, our roll whatever last mentioned of No, quarter Alex, whatever we off they et GAAPs, reflected cetera, expectation this year.

in that that's So number.

Steven Roth

strength balance We the consider debt that's our think is will -- a crucial and of a maturities sheet. debt balance of confidence great obviously our very stock into majority important element of buying are We of deal of our our have in making Alex, get we the the most choice. vast of we our laddered. that situation nonrecourse, We of time our to in the strength our each think that well that debt management in contrast sheet. back and

will make We by that we have the confidence way. decision right the

aware [indiscernible]. of last By dollars point, that the spending of I'm billions multiple company on one no way, that okay? There's other is

Operator

with Michael Griffin Our next Citi. comes from question

Michael Griffin

about office relative expectation, of to calling you depressed the there pretty question guess stock right? I stock recently, just relative from your down Steve, but Goldfarb's cheaply percent materially you I'm to phrase, relative the that GFC on the your share so have beginning times We've the price XX-plus NAVs is price 'XX. the known gives mean, what bottom. trading that used to the not the is piggybacking confidence just Maybe buybacks. stock I been

kind thought knife, a have some to you -- of really to a that done this could Or so analysis, attempt is catching an there is some it? worry there be speak. So behind falling

Michael Franco

bottom. when is the answer not think he's said The Steve what Michael. I It's calling

be choppy likely coming I But of cycle. going remain The Fed tightening to appears the environment to definitive. their term. think end macro is it's to near commentary relates that not to the

pricing for think But has even and We extended office time. case, the day, asset whether stress company at will that in as I about don't price value Every is think negativity look the rates stay we think the media. it the throughout So on we right? know discounted, higher a a more intrinsic period heavily the become there's irrational. of we evaluate we

think that's whipping for the warranted, we that's of but boy today. And some

And so on that continue. to that's an obviously has going sentiment. And effect

it's gotten that. valuation bit of have, we right? a so I And is extreme, And is there margin and we think reflection a still. as the we And action a stress our think significant

Michael Griffin

big just XXXX at I on And then think any ex you have And helpful. and XXX then driving That's Broadway Was about feet there's I then updates maybe one out anything of I on, for at leasing really was guess, Glen. this potential that? guess, quarter do AOA. expiration the move XXX,XXX Citadel square leasing. there

with just on would [AXE] be it's could you us but that think great. Advisors, I that, if update

Glen Weiss

Yes, sure.

that that So ... Plaza a the XX% substantially leased with cash XXX,XXX District then started feet color service strong buildings our PENNX Citadel was we $XX the financial mark-to-market at and deals on outside some of rents foot of

Difficulty] [Technical

Operator

is we with This is proceed. It conference main your Please had a operator. connected. bit The response. of line speaker your seems proceed interference. Please

Glen Weiss

the was Citadel quarter first that to known So activity.

and XXXX, we're As the and relates market, strong seeing very it XXX to 'XX, in expirations properties. obviously we're this demand and for other year those

If think redevelopments particularly being city and some We're in to about amenity underwent adding currently it's programs portfolio, the drawn up. on of those life our you in buildings the the the think board work those great strongest past. assets have we the

the XXXX, a of cetera. lot our is et XXX the the So parks, XXXs, pipeline at PENNX, the

about those of there. of back space the with and out in some in tenants terms paper We're feel coming we're assets, I now. lot the or in those demand a those matches and market good spaces making already and So of on right in properties

Michael Franco

in and that, to remarks. I think my add just mentioned may opening I this Griff, And I

was a significant record we The demand, happened I assets hubs rents, at for. spoken new about the trophy in Not the what And which space pay demand. that's has talked redeveloped out last look transit what's to $XXX, market, seeing activity. rents, delivered, largely foot high seen broadening that that right? near $XXX of are quarter you square wants tenant If everybody well-located, a think is

the assets. So in in them, think right? the are the move I have tenant we seeing holes et there, starting we're rents that's activity XXXs, buildings important, those where good up to and XXXXs, very And cetera,

the these are because redeveloped the Concessions transit these well in are other but between that starting and new rents to assets is high, a move assets are buildings Proximity there's located. such to up Obviously, delta with a important. at we're trend continuing activity and with building state But of we're critical. number the are is assets theme. seeing a that's consistent that of pleased the that our

Operator

Our next question Capital. BMO comes John from with Kim

John Kim

circular when higher your I or not And wanted suspending will only the whether share this the dividend reduced anticipate follow and dividends be the are back pay you're you scrip, up on a at it do you share Two One, it questions by to you at. aspect than on the to of year-end? two, to issue that. decide time. price at it buying where committed in count

Michael Franco

the We're think right? how execute. of think I being the to to going all the that buyback, count share I marketplace execution we on anticipate it when depends and decide John, execute, -- monitor to the

So to your out get wouldn't think Obviously, question dividend paid year-end. I today. answer first the it's difficult until

versus taken how from Too answer sales, then when the what's year-end how evaluate to back the share it we cetera, the component that issuance, again, capital of mix. we and generated et to right asset [Indiscernible] We'll will go cetera, pay based So down on up, likelihood all similar, early time what et and we are comes increased scrip back you cash to decide things. and consideration. much And into the those bought it, be terms then everything is evaluate dividend. stock to in and

John Kim

go just at it sorry, It if ahead. like buying you're a back seems --

Steven Roth

and remote equipment my I'm So stinks.

of sorry, So cut for The all dividend to give back. time those one the Michael in that reason out I the just us is to things mentioned. pause evaluate

John Kim

second doesn't these makes so. But at rate then make really I suppose, at question or sense you it buy issue to But my levels, back to at just XX%, was is... impact. an it implied then a I going XX% it say if cap back

Michael Franco

Hold an individual, it, for hold John, does John. it it.

as [Indiscernible] If company you rata, all you said, [Indiscernible]. that's -- you pro Steve hold or own the if more

John Kim

question second leasing on Got it, the okay. pipeline. My is

I think...

Steven Roth

issuance said, a in in I a But that's is of which as rata. John, on we our pro even great deal argument council time our spend and room circular boardroom. the

ownership, same own, that the whereas exactly company ownership of to is more buyback you opposite pro have rata. but a own penny, the percentage you shares, the the it's You to few percentage of the the used same

John Kim

pipeline. okay. question My second leasing is your Right, on

I you I feet to versus currently. mentioned XXX,XXX wanted of see how that think, last compared square the Michael, quarter. negotiations

compare finalized. I it ago? versus think where time little I feet, today you million square mentioned does XXX,XXX, different. those a are terms But know a X.X your last being was bit few apples-to-apples, months pipeline

Glen Weiss

say Glen. Well, very would I consistent. It's John,

proposals when sheets million tenants, we those out, and and and back the We've have have brokers talk speaking that to feet arrhythmic documents about XXX,XXX negotiation, final the in that are and be additional feet negotiated. house. are with we deal term proposals, where making. on leases The deals in we So responded the forth the to documents X.X lease we're

the consistent, call pipeline. board, rhythm the quarter-to-quarter, consistent mainly say I the it's X firms activity of law I'd X financial tenant in is service dealmaking been for tours to have But demand that last, the the the we're seeing quarters. across So it, and what think, the

John Kim

And can out break that you geographically?

Glen Weiss

Midtown, PENN Plaza the the between in Midtown us mainly say would submarkets. buildings would out I X attract for service the between And tenants. averaged and District financial pretty well

Operator

from Next America. Camille question Bank of comes Bonnel with

Camille Bonnel;Bank of America Securities;Analyst

on refi of we the moved a characteristics this the surprise notice came of Plaza market? recent touch banks, or and spread slightly spreads credit month weeks financing the of We've hearing a higher around the Was on been loan? lower. you have issues other but more Rosslyn in this that reflection Could completed since regional the a over

Steven Roth

Michael?

Michael Franco

bit. it so loan, in I It's each think look, is our And find situation. that to Camille, Yes. a not lenders delevered right? particular a for it's asset is -- the we every job best large situation, an situation, individual

So it execution. good was a

first but widened spreads is right capital ago again, years dependent, robust term the albeit than or sponsor your the general matter, And get levels, measure, not But a I for As right It's and challenging. markets are wider assets. there. Spreads any still out. there asset-dependent out comment, by have there are out the loan-to-value a there of okay. capital right with sponsors, good the is couple

I higher assets where in that where near income you volatility much think more are it's levered have more it's challenging. term the where there's or stream

a asset, I Rosslyn quality location. good So think was small execution and reflective of high

Steven Roth

My this not or take this, the refinance markets is cycle the on best Camille, is to your and extremely time are hostile, where have to finance.

that you to disadvantage. have is the strategy you're little like our have that And about huge If of finance, we very I we one to at a have things finance.

is hostile hoard, the and is construction, just with the financing cash stay markets our especially our PENN are So best of really bid them. so which out

Camille Bonnel;Bank of America Securities;Analyst

parts You message. your but were bit, got cutting I think out I Steve, of a

space theMART Glen then how into quarter, And the in office. tracking the opportunity business converting been wondering and that I at talked how interest has last just plan specific April. is progressing showroom about you. thank to of switching, So so far was

Glen Weiss

casual we're office leasing. for now in preparing for general, the we fourth a in have pipeline pretty quarter, departed Chicago. So in that space the Atlanta And business good

bring program the market. be June. and summer, to going this looking the out out to be will complete really We're to there event another forward program NeoCon broker by amenity which to, with Our we're

is a lot a So the tenant and demand of the a There's in large Chicago, huge the if tenant market not pipeline tough. at except particularly present. good not is demand

leased Our showroom this about the showroom on at XX,XXX feet perform. continues business. business $XX to We've starting quarter rent

the of X we've last feet leased X.X million business, office The over office years.

the grinding in couple next of we're theMART. office. getting move the looking majors. tenants We all to looks modest now out headquarters We're years. the expirations discussions from a with their to We're solid in have X very

So better, Chicago conditions as it's sit to but in we starting feel tough here. certainly

Operator

Our with from Goldman next Blouin question comes Sachs. Julien

Julien Blouin

at even think call, for get sort that asset now on your foresee thinking to I real of know Is the the the for see distressed it months. share next from didn't changed it I maybe maybe to wanted at the I a to you sales some asset like thinking go last via to was the repurchasing and But delever sales. pricing, accretion potential all? year. comment potential being Has really price back that asset this down sounds you sales you shares. now XX able for can

curious thoughts of on that. your get Just to sort

Steven Roth

Michael?

Michael Franco

Yes, Julien, And the I I a last had by surprised seen I about on we you I months. the or, comment note. guess, don't over said that the XX little assets think [indiscernible] no next was call.

a it's market try I said to we've difficult said going think assets I more sell weren't to to we assets. think in. we But don't sell

to be about we're said and have and we've recognize realistic think I you you that targeted going be to thoughtful what do sell.

comments assets some about in. to want we We It we sell, continues a which difficult assets. mix assets sell So have we that office We think a market I has been don't has think that think to strong impacted, know that And or impacted the not [indiscernible] your price salable. our do of was, strong think it your I changed may they're be while to significantly. as and be outlook it's has share been as pricing end that of sort think -- market of at the as more. our I

that's right? right, So think I exactly

a they the that were to may today years We price pricing. But not stock like do where price, ago. relative some our we to of few assets relative love

sell not we be answer anything. some we targeted, to to execute forced have seller. We're the going we're is, sales. think can So We don't a

dialogues in earlier We the were in probably other going bit things going We're on have of year. not our that couple assets. thing to some certain a pursue sales a on little

we're to are is execute expectation uncertainty to our given be and And that. to forced anything. But going on going to the in it, be guarantee the not I'm some market, going to able of we sell nor

rest our how try see those So plays it of intent to is year of some the sales. but on out, the we'll to execute

Operator

Ismail question comes from with Green next Street. Our Daniel

Daniel Ismail

provide of could are. in I of Just profile properties wall. or these we guys color asset expect with long sales. sort sort have today? on the do market these you the of guess, anything some the sort of you Should touching if of quality be what assets higher the detail on further to And

Michael Franco

to out. in Daniel, we is on going few get a going not into not assets. market blast answer you specifics. things The have is generally This that discussions

number to traditional capital on And got deploy. who it's You interesting cases, duration on are who of in a will year. I say percentage as leases. terms every certain this New rollover of to more time focus a willing cases, building there's enter investors some to an other York. decent in view there In has the

I mix as both retail and a office. it's mentioned, of And

to going do executable to you're I find think price. have But the -- get on investor we as specific more something if not you're I'm right they're to and that announce. we if any you realistic that So until said,

Daniel Ismail

-- still remains regards Okay. have That's we're how space? years with the just their X out have fairly building curious, was helpful. I just utilization the relative low And you then office to tenants any XXXX through to changes levels. pandemic, guys are seen

Glen Weiss

generally, mix Cube you traditional some more Generally, I and Glen. I spaces, but collegial is areas. like you're hangout would -- always it across call private the office say look with seeing portfolio, the open workplaces collaborative This still if open spaces

some seeing type you next. a In consistent densification, some one mixed more of are say relate industry bag. dense, they to were. It's a as of wouldn't terms industry types layout any the I really density

shortly are of one workplace much don't collegial focused what collaborative particularly the mean buildings, thing new seen than in of I the buildings what we to done than done previously, way the want the on in terms improved these at where theMART, think "hangout" what what a PENNX, there's in believe doing theme we XXXX we're I is going environment. at we've you generally, other at So the we because enter do we've PENNX, have what that of tenants experience the to asset. at the be when we're we've really first

eat, in, drink, program. gym, we've how experience, go When out, into environment. we workplaces extremely they're come the portfolio, to could do, comfortable, think, like hotel impact, could these first [early whatever been could at a important, it well in they our So the success. created working could new concierge they're on tower] coming we our to hang people going most that's which that look they they has And they they're

Operator

Derek Johnston Our comes from Deutsche next with Bank. question

Derek Johnston

California ago XXX Seinfeld XXXX, another you which world, for Years in investors. hosted that seems Street like

so So me, about, San Jerry's anywhere, Francisco. could bet stay was I be why know I you am me, with at [indiscernible]

you're of us REIT So here, Steve -- could office you're anywhere, way see look, a which to you we right that but know all narrative. means this you, this out you sticking out, negative be

for take the envision, it get do Vornado past guess going to this I and So stronger. question, to you environment how emerge what's

Steven Roth

help I need me to get Jerry to Well, this answer Seifert question.

I think it's happening now.

the I think here. I think -- is friend our time

back the that want I their the They working employees office. be to able think want that want have people very to people. it's managers together. their to They in employers manage to be clear able

office. And so back of there -- cadre don't is they have been the a that that fighting to sort employees struggling are of coming because

-- you considered if years was back X look time, go normal what ago. X over years, you to if back we think out or that you think if forward, go I rather, will go X I

is pretty our the want time in that, cities. friend to think It's people here. -- it's add be to I to just clear,

restaurants are part full, office, There certain a are the the the starting going So full, reluctance Time the -- of is actually on the okay? coming streets is are in cities friend. full. to is evaporate, That okay? our work are is that to of full, the apartments demographic

Operator

from Next question comes Mizuho. Vikram with Malhotra

Vikram Malhotra

between you clarify, wanted income then be and appeared sort projecting, $X.XX. I'm rate the then was you're had of taxable is run at outlined, of nothing's to your like assuming various impacts you just projected that fixed just and couple wondering sort had now. today, And in. $X.XX the you rate $X.XX. just a think, outlined you I said taxable your looking bridge call dividend I'm changed income to debt it, down let's when more to can now first, ago months help you of, and the what run it's dividend that But just FFO, but baked So you a I impact had of you now. adjusted I'm $X.XX,

in comment way that the lower the X be renewed? just from can I'm in here? changed projection that just bridge numbers. has if expirations change to now a So And you includes projection trying may What driving

Steven Roth

As I said, nothing's changed.

sales. statement their you read see same you'll [Norton We I way, left Property] room comment basically just for the if asset that in By CFO's earnings the have the some call, exactly made.

So what I'm dividend, saying we is rightsized the and that sales. we left for room asset

Vikram Malhotra

go sense. That Yes, makes Okay. ahead.

Steven Roth

I'm sorry, ahead. go

Vikram Malhotra

few pricing But -- seen different $XXX knowing your that we New maybe with of just could variety a say was where are in going probably to California, foot. York, from some -- would be about you achieved. ago, I a or in we this see vantage a some what is trades, didn't I'm think handles years $XXX, just point, we've sales talked asset not So

the of doesn't a other And a I'm a identifying you I'm where do understand, in trying buildings given types? then higher, to how of just is sense maybe office -- get there guess just what sense pricing. to a, point values I are say are sell? shaking how sale Some which are you trying variety you but see across make to you assets

Steven Roth

We're referring you're familiar to. the -- what with

We are distressed a seller. not

not are We weak seller. a

be we accretively. In fact, will select very assets -- consider extremely a offensive selecting be execute, we where pool will on the a proceeds ourselves few assets, we proceeds be sellers a can focusing the if are to invested because of

So you can count of on a couple things.

selective. very be will We

say we how -- we we We the how business. execute, way, wholesale know if no. will -- we We do selling are know accretive. by will If the walk extremely do not to in to away. it be And

Operator

Paolone JPMorgan. with comes next question Our Anthony from

Anthony Paolone

look apologies years, we crystallize back on the the there of couple you spend what's in that's to if sub. do beyond you that Or the what to? that, do anything? or buildings intend doing to of But committed what's stuff a what out forth and comments. District, in intend with to is underway with lost Just press what the and just the now But right if PENN I've you're thread outside way if the next do your on the

Steven Roth

into that. haven't We gotten

that. announced haven't We

We haven't far. quite gotten that

Road We Train in already private-public the have done Concourse. did partnership. District accomplishments. Moynihan the widening heroic Rail the did in Island a Hall We We Long of PENN the

Retail that Facebook deal foot thousand in XXX-odd have Farley. concourse. both of We sides square the completed on the We

successful rents to We in have and we from side done a stunning breath. public in take going we of The the foot will not Together of middle we of likely about a the PENNX billion doing and doing we're massive but the what a the actually of the are middle development, $X and excited delivered an We're renovation planning we realm, improvements, $XXX tenants, PENNX. prospect ground-up yet renovation with XX-XX very driven infrastructure of value and that where to announced we're it. have and to of very are that, doing. with area-wide project, have a to apartment start we we're our

Anthony Paolone

a Okay. just then question -- just one for And clarification me.

like look could that $XX.X Just there holders any looking a where at XX-or-so your think, I is mean, am exercise? thought I share. balance have those million units reminder, sheet, seem redemption a A given that I Class is, I the if on the of, to price stock right? And about a

Steven Roth

you're Tom, with to help me Michael going that have or to one.

Michael Franco

on you back one. us that to let come Yes,

Operator

Scotiabank. Nick Our comes with from question next Yulico

Nicholas Yulico

update I we're and to wanted there's to you know see retail the still -- the the on talking there matured, I JV, could provide you that if lenders. any loans

we are your on to is as mortgage away company. the assets? matures walk from XXX specifically which which that recoursed What well, the plan the one next to year, that? of a should how should there is loans think about specifically? Is we Just prepared you think situation that Fifth, about where one that And

Steven Roth

Michael?

Michael Franco

Nick. Yes.

last a discussion the Regis, resolution acceptable there. we little And a I continues St. talked asset quarter, we're, towards first lenders. to mutually that be the On bit which in with think, heading

XX to started which matures the start an on respect will with May, at the next done now, bank markets, hopefully, And that existing to something be that work XXX, next financing So gauge to that's talk days. we in loans.

well. So with is somebody lender that to obviously, we'll have as continue discussions existing

at what's a asset that get is the too bit, So we exactly happen there. going par pay to refinanced. the whether but will little is it or to that But asset refinance it and early do down intent expectation to tell obviously,

Nick, I think I dynamic. will interesting say, one

is both a as most Retail, the Sort well Retail it. X-letter I worst It's are Retail, touch as capital of word, in X, office people. us. category that The flipped. changing. investors wanted X, it's changing. X for think Unfortunately, is people nobody now constructive, lenders. to word But behind years ago, is That's markets for more view

I how more and been of about general, think And are a understand have so few markets on yes, to constructive with they the to in sort above-market today in some deal retail rents But in cases. they think have years. capital than

Nicholas Yulico

Okay.

now markets question is crisis, since other as that mean, they've there's decade. maybe in bad office I bearish existed in the to as come way markets commentary financial going that the on a the argument the one don't potential debt lending Just buyback. back back the and they past a been great right capital seem for a

talking you make you're me mean paying lending with down guess, debt, So you to think call sales why buyback improve. it that I stock line about buyback? so. And wondering markets and back dealing of on you implicitly debt use of a than there's that you're credit, year if have now your that better that Why that seems maturities view the asset have the the price so a you to pay capital, fund I'm potential I or a instead next stock reward isn't of sell perhaps would the your more balance over assets

Steven Roth

don't Michael, that. why try you

Michael Franco

going just from -- on don't we mean, we I don't think it not out our #X Steve is We sure by we've the maturities be could yes, I clear, earlier, cash at and best -- said we look in the first sales, retained balance like said very terms modest. sales, buyback. anything we buyback, mindful, amount right? priority [indiscernible] asset sheet largely we're use all, can we And dividend. -- as characterize don't towards] that, is, said buybacks Yes. of on asset the think the Nick, I think situations said think I what from and that's put depending making said or strong. I think our about and proceeds I funded remains I I and delevering anything out, down. If of But for paying asset said to don't tackle on we mean think just execute buyback pushing of as course, I to fairly be [oriented that would we're sales,

course, going to be Of toolbox. the that's in

strong things. So focus we to asset going used on going a We're to are of and is sure balance variety for sheet the be agree. sales making

Operator

comes Ronald question Kamdem Stanley. Our next from with Morgan

Ronald Kamdem

couple a of Just quick ones.

dividend, you cash to the So looking flow Obviously, two, working some just $XX sort there's thinking I flow this XQ you OpEx of said one, the at operating of and what cash nothing connecting cash of a about dots elevated, of and And the to then about changed, I I know flow quarter. in sort quarter, the But preserve through? seasonality. can it about part cash was happened capital in just this suspect, dividend talk at looking scrip statement flow. postponing doing the but flow million was the looked and

Michael Franco

again, I changed, second definitely has mean, On not. question, Ron, nothing no. your so

OpEx... the On

Unknown Executive

could Ron, take your we look and offline a seasonality. at model. some work there's Maybe

Michael Franco

I material. it's think don't

Unknown Executive

don't it's material, think though. I

Ronald Kamdem

And one, last on the refinancing. just just then the Great.

pay general Park as on about. XXX thinking the what model, thinking well, that? on already the of next You sort when But Fifth property, about which going coming color Avenue which And rates, you I are about just hit comments was any potential year. to we're down, is ask any how guys

Michael Franco

I would Ronald, general your comment, say is new lender. What Yes. best existing your the lender is is

most certainly think refinance So to the difficult that for foreseeable -- lenders be most think going I that, and assets it's to future. appreciate large I

with they asset, are. the feel sponsors, we stewards to clearly which I work of the have to think right going they're So borrowers,

on think see I going so to these a you're of situations, number loans. these for And extensions

there other not cases, cases, So there might downs. in be. be some might pay In

ensue. have term. near-term we'll the larger discussions are lenders, these tied I together and there, lender is answer on for started the see think fairly near I the how So borrowers -- situations, they But think

Operator

a follow-up Piper Sandler. Goldfarb is with question next Alexander Our from

Alexander Goldfarb

cetera. with we box, of two, Maybe Francisco's about talk with the missed did the it, about the the And building, guys are that? all servicer, what's San but restructuring One, leasing debt just in Montgomery Street market, going hear the thinking office just given et about that you what on state stories I XXX. you the guys

Michael Franco

We're right? a do structured as a X-year, is to a have initial Yes. So with This to servicer. first, bit going was just right? right no extend have it a the on frustrating My the can we're default. not in the letter touch then fact-based. X-year you send is send XXX be is I'll performing written, is letter are was and a years Glen on second. all the things issue the that to So X-year ago, loan year, with took series, extraordinarily workout and well. right? asset building loan was answer if loan. outstanding to threat of are or term, extensions, there there's be There's a asset that something I'll want going additional will a loan and no right, that, it, when the -- out notion in get it We a Alex, touch you which you once and an X the a

a It been never way. with There's default. There's threat issue X-year that of this loan loan. an structure was never a been

may there like on So be articles by all way, did that. the situations homework. their written this And thing, nobody the other

understanding story bears on it wrong. dead how which are loans everybody got structured is, just it real wrote the that So and what the

premier be, terms in about with performing San it. In service of I But asset I'll best to Francisco again, Glen team. continues building, just the it the think, financial the of lineup let talk

Glen Weiss

Alex, Glen. it's

Steven Roth

is rate swapped. the Michael,

Michael Franco

Yes. Yes. That's right, Steve.

Steven Roth

Alex.

a was loan, has a which a of X-year First it's the really combination one, to all, X it's X a plus loan. as X-year structured lender

wrong. the -- newspapers anything so all And got it

we is at it thing or that we don't and X.X second for, I that. that something swapped The it know, swapped floater like years favorable a a very rate was

marketplace best the building? Glen, the financial comment full. is about the is do you thing the quality and the to -- in of So services want building second

Glen Weiss

Sachs, renewed asset. Look, marketplace. KKR, period, last in their that X reading to the tenants leases building X-year the Goldman Microsoft during anything, has been perfectly all which insulated lost about We've the speaks against BofA to everything you're

XX,XXX to obviously, that's size. reduced with like finished vacancy them That's and the really think XXX. ago. couple We market at know of feet. the I none need Cube redevelopment of in years in the a obviously We're only the

We show in city. the it's continue the to the performed it, has buildings is best camp period, and clearly it's during but perfectly asset that the this shown X

Alexander Goldfarb

comments. I appreciate Okay. both

Steven Roth

information. Your way that get a bit this little pardon, if in the we

Unknown Executive

the That's these earnings beauty calls. of

Operator

call remarks. the turn to back over like Stephen closing Roth for to would any I

Steven Roth

us. thank for much Well, all you very joining

also, your all is We what X doing and with a Thanks and understand are in buyback support. excited we about very you think we're the and we beginning But logical, actually appreciate program. months. we'll see extremely joining, for dividend

Operator

today's and for you participation. this your concludes Ladies conference. gentlemen, Thank

now may disconnect. You

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