VNO - Earnings call transcript Q1 2021

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Operator

Good morning and welcome to the Vornado Realty Trust First Quarter 2021 Earnings Call. My name is Vanessa and I will be your operator for today's call. This call is being recorded for replay purposes. All lines are in a listen-only mode.

Our speakers will address your questions at the end of the presentation during the question-and-answer session. now call will to I Instructions] turn over the Ms. [Operator Director of Creswell, Investor Cathy Relations. ahead. go Please

Cathy Creswell

Relations aware certain section. Please call, to of during statements on and to including results call may deemed filed statements Exchange and Welcome be uncertainties materially as risks, our financial with made In and available earnings documents you. call. our a included actual annual financial release Exchange package Commission, the may Form we refer due our forward-looking from our factors. these filings statements, and earnings differ the Securities variety Realty XX, that report December be are website, Securities these this today's the the our Yesterday discuss today's to www.vno.com, issued report in that and call and supplemental XX-Q earnings information does undertake be include with information supplement. XX-K for more XX-Q risks quarter and any These most GAAP for of uncertainties. we update Reconciliations year statements. a may time-sensitive Investor ended regarding will date. The as the forward-looking Thank only The on first directly non-GAAP under of accurate Vornado may and information company Form measures. duty as these during not XXXX our to measures afternoon, to Form Please documents Trust Commission. these quarterly measures on well our release, comparable first quarter financial are other

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

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

Steven Roth

your continue you, be on and and all safe and to you hope to of vaccinated morning that or to I way being you're Thank healthy, everyone. all vaccinated. Cathy, good

will delivering the ready us site that, robust offering less years being timing we deliver convenience complete. Penn in which unique tenants is Farley lobby Xst a the are directly to our close lobby And on this of the District get on full be square success. Concourse The site amenitized the the of in half development I just of project. year-end. package Facebook couple years half will delivered the best the PENNX of town. to on XXX,XXX At will confident July, the believe on from and of and that its well the will second speed for Penn decision ahead Street for transformation of Hotel Notwithstanding Xst, than permanently Long in phase the on over development XXrd in main next transportation allow is the along, be This now. Penn deliver are to feet Hotel New with amenity and XXth and York's month mega developments two will we hub. we we for site perfect city, most We October added at Island the top Pennsylvania District the one now, January from PENNX and in now buildings will are full-scale construction. Street take Railroad enormous June the

rents fully Since Our be this west, we the and to we outstanding strategy rents, outcome. the remix their I time, to the as rise will coming neighbors PENNX aggressively under deserve. here District, expect is to $XX premium the continue our Penn below an off PENNX, that will price Over are umbrella. they price

and returning York New to normal. to the and summer will Over the reopening fall, early be

preferred our for them are of post-pandemic. place are work continue back we to belief employees but be The will kitchen strong a to table anxious I employees the of from office to for that to telling the be future. may tenants their welcome in the working that the office office anxious work are is All and We place their they some, and of our companies believe us the bring mode the remain the back. urban

York I now we come is and all New beneficiary. This pent-up year New retailers economic As stimulus the from and happen out is difficult tsunami are now there now goods tourists tech country. now fueled to healthcare is in spend we returning Depot of consumers. demand The believe need Home is Target very this of we're on booming, have an to is beginning of said, manner I all major booming, travel, sector like enormous If booming, services. which and to boom, government a across booming, financial by is York Walmart, will of going a and

pool us Importantly, the footprints and office New is anywhere. are their York growing in that major to tech continue they talent York's deep companies telling that unrivaled intend and diverse New

on are bullish York. can New tell, you very As we

Finally, XXXX a word ESG XXth. on Form-XK April We on about our report ESG. filed

awards topic the demonstrate it. have to we continue and proud that we and here We received. believe our Please take report. do This this we many look recognitions is are at a leadership of important an important

Now, Michael comments over numbers for businesses. and on our to our

Michael Franco

look safe again I and morning, all in Good Steve. hope person you, everyone. soon. and to do forward you healthy Thank seeing you're

comments financial quarter I'll with with the results on end capital first a few Let and our me leasing start markets. and

for lease Macy's news by quarter, JCPenney in are sequential Pennsylvania FFO our for items quarters. decrease few items; of on our the District in adjusted Page rents the over BMS $X.XX businesses, of time. results we close are the With [ph] collections primarily quarter, quarter rate from first discussed and was XX% you for out to will were trade being from prior tenant equity hotel. from the Page rent the run retail in last still of awards and are New new signage, space last comparable bad non-comparable decision $X.XX retirement due our ran decrease adjusted in from the from the to $X.XX was savings. offline, on per earnings shutdown. the continued moved of first of consistent the the effects our quarter last these quarters. COVID is from the rent lease to to reconciled given executives compared of quarter, permanently financial April York XX%, is last One Penn partially for and supplement XX% a you collections are The G&A with quarter quarter $X.XX in garages driven will the release not of fourth the taken first cancellation year's share, that in accelerated service, $X.XX in quarter. same These Furthermore, at income line a this offset first and were and year's past Hotel and overall rents. show, $X.XX X right as company age interest year, vesting and following over It income results rejections return to collections primarily first our change by $X.XX statements collected note office with the vacancies Most First temporary respect quarter, debts, $X.XX X. level. improvement variable We the and

X.X%. headline The Chicago excluding office core the the in business company, own a continuing San this numbers challenging NOI flat is in of by positive XX% to same-store New hold retail business aggregate protected quarter down, core here office takeaway is variable cash office face, Francisco, its And store with guidance. are the consistent the York same their with recent NOI our positive first while businesses, was actually that Lending overall is are our quarter-over-quarter, overall for on X.X%. business, again long-term our the was numbers and leases representing While our negative debts. big over environment, retail credit

recedes seize Finally, as significant level the returns activity. we for normal to pandemic plan of have city and growth to the

In PENNX, savings the our the and we interest PENNX variable with over followed from we the we realize as reduced from significant XXXX, our reduction in fully growth of coming return expect delivery addition debt. businesses Building announced Farley to and of previously roll program, by the overhead online costs will

even the our predicted in of that will Vornado rate the over growth analysts several highest One years. sector next the have

numbers. the is are ringing, phones volume markets, office are up trend are quality leasing coming in we with are and improved activity According seeing days. accelerating. houses, in XXXX being pace leasing XX leases leasing up, brokerage flight the the certainly proposals the versus conditions Now The of signed, past out tour to market the turning volume is nicely to to in the with

market the today or quality plan sub-markets three all come from substantial had space poor and term sublease sign, terminating. in space high. Roughly who removed having the been we a quarter by almost of the At either the space. since years sublease first down recognize most way over-tenant XXXX fourth the of with the some, constraint. physically, quarter market feet space, inventories portion time, than has credit the sublease has any activity recently Midtown. recurring by realistic challenged of an a of Moreover, the are But sublease in the to of has availability space occupiers of re-occupy XXX,XXXsquare action less that quarter across same most The encouraging the remains

new leases completed square office During largest the two quarter, leases were quarter totaling to we portfolio. both XXX,XXX XX our The first feet. the of

XXX of Avenue at Ave, the represent of launch, in Inc., XXXX Young state-of-the-art their content Adult coming Americas. a IPO square these the an from successful for leases their XX,XXX feet expansion facility, off locations. new FuboTV Xth Both world and platform streaming square prior Institute feet XX,XXX the schooling base of new for

Penn XXX,XXXsquare pipeline We into and million in year, to rolling at in of year in market negotiating addition, up this of sweet X.X XXX,XXXsquare is redevelop, feet for our a firms looking relocate under up Remember, And XXth the redeveloped reminder, Last expirations As which current spaces are have we space or are a is available our with each assets. matches which this small new XXX,XXXsquare on we our redeveloped current NYU. at with deal-making is leases largest modest, than square the and feet all share only year, a blocks the Street meaningfully very portion The less XXX,XXX with Facebook West are new completed is largest X% vacancy in of dynamic our from feet midsize in or to XXXX, and quarters. recent XXth Avenue XXXX growing where well XX tenants. office and XXX paper the with square currently which spot of feet of PENNX. our feet two District, in

and Penn is District day across tours and and in presentations, team Our multiple with PENNX, all project been for center PENNX reception nothing district each the District, the new and tenants showcase best-in-market short of experience have everything full phenomenal. and Using meetings our industry vision for really Penn types. life. the brings Penn brokers District our plans to now differentiated The grand leasing to stride to our offerings our in with

activity Turning more and Chicago, we now Chicago in In San seeing the are market. to also Francisco.

first the were XXX,XXXsquare renewals. a We the real property. thousand leases, During feet XX office of renewal, leasing XX completed pipeline totaling feet renewal of quarter, along square currently XX,XXXsquare transactions have XX,XXXsquare a of feet a XX including we feet, and XX,XXXsquare in showroom interest negotiation feet showing with which

Bank California off the America October triple digits Goldman executed Importantly, XXX the tower. back continues we that of Coming with the Show we business Sachs, in be the with show lease trade April, a income in with for in both the restarting NeoCon bring year league renewal recent this of to our to stream. its will San own. large KKR renewals In in beginning of be its and heels feet Francisco, in XX,XXXsquare a of

Our XXXX. expirations with is occupancy XX% minimal here until

retail out leasing pause is even succeeding on to opportunity. are where to greater of price-driven. leasing million Avenue of a Xth seen inactivity and higher of XX All come retailers tourists return. York Retail Square City period in Turning there now who current are thriving now. a plus markets to phase very visibility the is Times activity, have The as least retailers for beginning looking rent the until and the remain is when or activity will tourist-driven

Tod's Americas, the of XXX at for XX leases flagship quarter, a XX,XXXsquare a completed with retailer at X-year branch the Chase feet. lease and we with the a two extension renewals Avenue. included for retail During Madison Avenue JPMorgan long-term including These XXX luxury

the space. signed six future in upbeat prospects leasing of at negotiations Overall, Our value. balance also demand included and for we are leading about tenants we another to and the our creating remains Concourse the Concourse Farley leases of position are strong, our fill where the with our them in markets,

capital the markets Turning now. to

First, by Capital her of high-quality as with to at Markets. be time Head estate Park significantly CMBS again our and banks at for between Xrd financing market and both to One Executive approach companies recent secured also are Spreads evidenced beginning congratulate very unsecured strong estate The promotion let wide refinancings President, the unsecured Jan Vice reduced XXX improve, and real continues rates. both shift is that likely coupons and office. real strong at very may open balanced were to and continue debt. land on which me Avenue, to it LaChapelle markets of over all-in levels, we to market attractive more The a

and $X.XX $X.XX undrawn of credit Q&A. operator With facilities. $X.XX cash strong billion, $X.XX over Finally, revolving and cash turn billion the our billion it for is a current that, our restricted including under liquidity billion I'll

Operator

And with Instructions] from question Steve ISI. [Operator have Evercore our first we Sakwa

Steve Sakwa

I you're terms Good seeing just the could in then leasing, terms maybe of about free lease time that TI tenants wondering detail Yes, you looking of of lot that thanks. the today are talk if length a morning. Michael. forward and little rent market. in there, on a spend sort was you gave more

Steven Roth

you repeat? XX out about seconds. You Steve, just can for cut

Steve Sakwa

concessionary around a some lease but TI, of for lease of then, from you tenants free term? in length rent, looking really was rent. just face of and impacts, seeing what not question How some the leasing the are Sorry, commissions, term, are items the

Steven Roth

long-term we this First thing with of years, lease you commitments. a is years, lease term; XX I'd [indiscernible]. a we're lot tell lease quarter this completed that XX XX seeing actually years for

terms but are think up, elevated to stabilized if you So are to meet rents TIs we're sure. seen are I'd to TIs want three effectives but doing, to lease say two that elevated, stabilized past, and give we're fill what have space months, free they have I seeing go we've now, quarter you commitments as long, in for at no that's lease right for the the But to we seeing sure, this quarter. and to point. space they the we're net this market, over change

Steve Sakwa

Okay. as about there has recently be the how was the And excess maybe for extent California I been $X you billion some I Michael discussion this around know To would there proceeds, don't of did and know or refinance of is refinancing for? follow-up, that you article there. if a new a a north XXX at that and somebody mortgage that else, do level, used the think about what an

Steven Roth

to about smoke, you that, site just there's comment generally don't We tell I on fire. the to at going there's transaction that, anything think we're on than other speaking, that where won't comment [ph]. care

Steve Sakwa

Okay, thanks, me. that's it from

Operator

you. Thank

question proceed. next our have Please with We from Citi. Korchman Manny

Manny Korchman

morning. Good everyone. Hey,

Penn the decision buildings, PENNXX and progressed the current take and blocks the that conversations your large how redevelopment at offline forward larger wondering well to for Just there? hotel as the drove with move Penn, tenants if with both the the available are at as

Glen Weiss

day PENNX times rents it's at in action you Hi, have deals single tower, absolutely on the do PENNX there, some but you tell I all at I'll our this Glen. underwriting. and two-floor at not any showing we're from at will have that happening multiple a experience is we standpoint the tell leasing blocks we projects, the real in fire, large are a

very reception been The excellent. So well we're performing has there.

lot of to Also going PENNX. are slow also are that the daily market. showcase PENNX great but incoming with go to We into beginning presentations a we're

a to starting beginning get are announcement the get has in started thing a to keeps construction construction of this And it emails, of on on on people's see and as reception. Hotel in and incoming can our incomings just and to PENNXX, standpoint better people will as the we we're Penn into tenants of and up the So calls talk plans, it physically, XX-XX well we it. on brought better the as just physical going show we've about lot folks the yes, terms knocking

Manny Korchman

one's here, don't anticipate occupancy I do is rest or And little you think bottom know if of Michael, of through trajectory the the City we more you New Glen. you or about year but if this for to come office Thanks, this for or is think that sort the bit absorption occupancy York vacancy, for there a net a do from the perspective?

Michael Franco

bit me, I move numbers there. Manny; and play don't I around the in or have front a of exact here can

think I close to the going there. pretty little a bit, but we're we're take bottom, say think again, to I basically not I'm

Steven Roth

me would to I and market this a months. houses Glen brokerage folks clients the the you bottom into the a tell their a told anecdotally, markets that their several told from to tenant turn landlord market the they next that get and expect that have is Manny, that of now, over six

but information, anecdotal that's So important it's information.

Operator

you. thank And

John with Please Our next question Markets. comes BMO proceed. from Capital Kim

John Kim

Thank York what's far as expect proposals? even What you. second fluid more announced in on Are announcements to that traffic any your you potentially and month. be Goldman this share the street is far in next City plans as also today, more very retail and do as and reopening third news morning happening of details back far flow you as portfolio portfolio? in could New The quarter, and the Sachs signed details leases there as your to as the come

Glen Weiss

over leases office, in his robust, the Michael remarks, remarked it's have negotiation. take is we script, pipeline the XXX,XXX of an in Glen. opening I'll our in feet

are better coming quality many for that looking X.X little, in space of I'll are out not a things to up of you products. deals new tenants another feet picking have are woodwork, discussion. million the tell We so are a lot,

as leasing right we a now. here huge uptick we're So in sit seeing activity office

of that's and are to tenants feeling in building, of the it, Labor in we're we're In returning us at quickly. percentage it but starting is mid-teens the basis, of the a the Day, We're uptick in narrative telling utilization hearing also week. terms seeing certainly Most all now On we're unwinding week buildings. a through June it. our

Haim Chera

City retail, conversation, country to fact the of have pandemic is the primarily list smart the the the retailers New being our And probably the a XX in been in rents. lack has City driving; opportunistic. now the better the York retail are New suffering booming. market think that in In offering seeing that's street of ever don't prime today the been the due in of it's million a we if spaces at are better York on survivors opportunistic the in major has terms actually offered than its but I York last be tourists uptick retail from rest to the being of New value The

John Kim

That's Chairman's more Thank that of and very stripping second tracking you. share Steve, are is capital you raise plan the you the at time this Vornado you the mentioned letter, helpful. out financials will on My to timing, you be the through could not question there or going far as whether in stock the it, any details redevelopments forward? as from Penn

Steven Roth

think on this. comment to really it's I appropriate don't

rate has and Greg, a your year-end. example. business where We thinking our you generally, are of used give it's is which of very but I'll about. has folks it's by a I been premature little you very a for bit the growth different And have used we're on exciting sidekick; something different very, a any is way, that details, Liberty excited it targeting which don't and working characteristics. tracking inside very would and be think is when to of hopefully is and, it; a project by very hard Barry at like Diller, than core John that get Malone into that, what Other [ph], successfully different stock We're

company, investors our we benefit is a feel and and feel for we able do that District for core the being or development would core the better district so, its the we to by assets have way, Penn our enormously By project characteristics. And remember so, it's Penn than invest assets. in and that mega that worse different

region out that the in the and all of to which transportation of the York, is of So can Penn no hub, the it it's part them important means on aspects you and that what consider from look assets when because of it's number interconnected one of New accomplished a we and all we district is, scale City extraordinary at the point the The New of my top blocks differentiating the subways part at of the are epicenter the major you I by it, of the that of on where most interesting York station number are in cluster of enormous, railroads, and ride. the view and generally view and assets into it's of is, that be way, of that's matter you point come the Glen's think statement hope all get and of an enormous. most The of of directly underground. it's buildings

million who has building means to this, to or in who grow in building has tenant that is should complex that about want there a a no to they growing the place tenant what XXX,XXXsquare is X feet locked in XXX,XXX into go, is XXX,XXXsquare square to same comes requirement, enormous adjacent a XX but and to million in, I've XX written feet So opportunities billion, our growing buildings. foot

involves of So who afford amenities, million-foot can a I do, for strategy that allow series buildings will building unique. even of enormous the us totally also that in makes cluster has an a believe which which campus, somebody to giant

because of HQX of New great is Penn have, We've and because true a Amazon cetera, our it's in same down the our enormous contributed in XXXX. We company seeing that the Virginia and there when assets District. bid that in we land that complex Crystal of same thing the are the City SpinCo concentration to Northern market. of has where [ph] much Spin obviously now JVG York labor Renato we attracted Smith buildings concentration et this very mainly The

meaning and even the Penn the objective trying building take Avenue are Park to the have office to different than we're a what different, is which on investors is allows to choice. businesses corner district do So and

we're announce about advance we important it. a it. and be process more So very it excited when and will in coming details as It's work very we

was think well-received troublesome which our I my feelings me it reports contrary investors, in that about by said is to that's feelings not somebody their it. and because last company's it night totally to about

we so, if to exactly case, understand think but work then And make that's talk investors that's it some do our and And the couldn't to we I have be everybody to what excited. for we're now. thinking about, more

John Kim

list some When key the District invested number as will Vornado, come in you attributes of arguably Penn one. up

to really you have isn't that to invest gotten in feedback reason So the that different company? the this

Steven Roth

don't the question, understand John. I

John Kim

Your you're just that's stripping that renewed it's is today. the different? the out point reality think I'm of a in existing key redevelopment where that reason wondering it's investment why something different, assets you just

Steven Roth

over minutes I Well, But the different it's five in last for and it's different. is, estate, ways. many answer totally totally the say real said what I again. many, It's can different but

The is, stock else. for about the that trading anything you when credit other and District in of go thing our without - with think could getting don't the stock Penn Vornado stock we performance, think price we're no basically or

its of different. think that don't Vornado but Vornado, totally we with whereas get So hopefully, true stock District what that we corpus be will the of it's to or rise maybe the value, happen will we you, even price will the unaffected, is agree think Penn

Operator

Alexander question next have with Sandler. our And ahead. Goldfarb from Please Piper we go

Alexander Goldfarb

Steve, morning, morning, good Hey, Michael.

going question tack my I'm a to take So with this quarter. different

or studios to your radar. Netflix Steve, have on and your the letter, So Chairman's of can or amounts JCPenney people for carved out, to would that the of two truck outlined existing It redevelopment, I'm Penn some to of your be at of those obviously are is on those and what those perceive incredibly city the converting versus and I of huge space out has in assets positive studios? having your both the to going the of outer Mall dock, they loading Queens to boroughs. your spending, your studios focus portfolio. being sorts huge now thoughts be other assets district in attributes potential that on that you that space fact either convenient to some Manhattan are seem in What

Steven Roth

began This we of is have in or things; unbelievably entities and that one, and has that need network that stages, incomings powerful, consolidating. streaming are happened Netflix become two business with business And the become number growing business the entertainment dynamically - sound business all the from an number two, addicts. and what's stage should sound all the is it so

that New Apparently, And business desire they are strong so, in that handling a the financial companies even mainly in significant, huge even a are there to and dominant in have concentration entities a and all is be York. talent of York. New

guess that But there in one being say And York, Southern cities. the European of is three tremendous amount a I of and is the really they California, demand. New basically so, it's places, unserved point

so demand. incomings, could service that that responding we're to and we assets And have

the marketplace. that assets our deal take interest could we but that bank says of great make a I by become could unique the I the working are just a on. statement Now, way of Nothing see to of some is too that way, Hollywood don't pockets where there in to East, the imminent, so Penn demands aggressive we in responding we District

Alexander Goldfarb

something it's you. would have and Obviously, to that's come repurpose, seem space back good. good be to that's new something it blocks especially that large of Look, to

Steven Roth

of that those assets adapted kinds to be have we feel we could And uses.

Alexander Goldfarb

streetscape and improve, you Long about the would the two that by better there, lot to area to and see Hotel have you that the seem clearly that is back Penn It being going been and the already a neighborhood and are in have in Steve, way talking We for you hub is look Island is station, question, XXX there that know decades more site and given of you second the over is chunk The Access almost Eastside have Central Grand Park. the years. to next people issues the guys XXX at already coming a about commuters the huge there, a Side access few desire excited going all Penn neighborhood guys sites commuter East Station. than Penn, just when

what So you your are getting Penn anchor to tenants anchoring guys at pipeline Hotel fit versus accelerating that XXX? in flat and your thoughts where a XXX on does market are as

Steven Roth

equal kind feet candidate go, it's are It's a and enormous we the the for employer, a Obviously, it's wherever obviously we asset, rebuild tear opportunity of to the where of too, in respect to like as it's site a speculated XXX the combination our put down we We XXX,XXXsquare the want by an Park but great and can amount in want for way, have Avenue grow them. tear tenants and and press. an asset asset, down is rebuild, that's bite-sized. a

that so continuing require if the so for will it, it a which we existing building is undertaking Park retain is at time. growing we the we new several it up and outcome it over a financial and existing do that like build rents of we likely more or to very just X without to the may an record to will Avenue that. the do but it's square That would on building immense we that, option about, have So is rent foot and XXX could would The breaths rent grow square which favorable more not cycle, talked doing which own postpone it site focus the wanted [ph] a be building. foot on likelihood than our million million we would tenants

a way, something and we more likely not we focus our likely the we for it to more if Penn cycle, we we couldn't that's asset whatever, and all its extraordinary on that's tear our on terms it, build the for or more by district. out right agenda we site more an can in that Station So wanted the of it's outcome, of down new that the one efforts get that optionality, price but decided that think although on do with now. sell That's not rent will delighted, be high

Operator

Bank America. with of next Please our question proceed. have Feldman We James from

James Feldman

a morning. you call office major at in want to and you the their the companies onset footprint you go a I continue comment made to Thank where tech good Steve, plan New of said back talk lot growing have exactly I'm you to our is York signed, there understanding it. big City. that been lot what the Can leases about if but seeing? think is curious behind a you're more of I more

Steven Roth

clients. important York all answer and We New is, is the confidential we our love New all confidentiality. in all, is New with We they about have most Apple on Amazon, they York. comment second very, can way very conversations is, folks, workforce only these love obviously the that and, love we very folks, cetera. What largest very deal to not from and first-hand York really our our to these of Facebook we and et a York and of that's for going customers importantly, The whom you cherish respect information, them employees that to outpost large New a to of first portfolio, center. There their all diverse is these with I'm this tell

New very I of where is to that's that's statement. their be. in way, my York, real of want be in basically west by all continues almost York as interest exclusively the a York That's and the that interest contact interested we York They pulse they in York, New the in want side do, culture stand fingers thing. says have closely New their they on they so their New By estate we almost real unabated. exciting professional very to the York. organizations with that employees are New where frequently, their aggressively very are we And follow they estate is have daily, think in So, their New the as answer to

So of and we think think we future that well for the very future And that. bodes of New for for very the we're York well-positioned Vornado.

Michael Franco

in have to that need the those they had companies people the on huge ambition. York. person, public segment to you'd the significant then continued companies companies or point continued mid-cap they they in These amount and now posted, growth have engineering either an five, rates you in to If be of ambitions, they're you and have, acquired, They that to execute about etcetera. gradually that think big aspirations it's collaborations business, got have the need of tech entire earnings four with they where to start companies stunning New gone the talent,

others portfolio. from that's positive central FuboTV York And growing both significant example, tenants have that, companies is went so, own just and of their think our And Others this aspect public the on and as are marketplace. These just bought, that for we aspirations into community that very I are market said, New Steve our business. in [ph] that for a expand.

Steven Roth

high cluster can are. see. about is are very When want that's Michael Facebook and feet. the ago, couple period. in important to which the they That's that in are with growers the with to new the we buildings XXX,XXX have up and the a growth Glen loves the and they they feet people, best same the that over XX,XXX the occupancy likes established huge of same started X, locate they look thousand of of And and the brings Glen in to client then potential, started kind enormous as that tenants X-year and neighborhood to point, X feet add aspirants and hundred who X they and we a where XXX,XXX tenants kind newbies feet grew be they tech what is, years

James Feldman

very divide into? of That's you. pipeline, meaningful tech million types is growing or up Thank square if that by upgrade other there split category you X.X you The relocations, how tenants that kind those any versus of would feet of helpful.

Glen Weiss

renewal Jamie, look a throughout district you, important but years, three other diverse renewal, in industry explorations as transactions mix good assets. I'll also very tell mix with and good to along very our our in sector towards very tenant lot Penn the we four next a of activity, new

renewals, that's of sector. charge the The very ever as are really a busy really industry and busy. I've oriented seen new now financial industry every our so it's really it, leading healthy mix some right type So they're expansions one of buildings is a tenant, financial

terms [indiscernible], feel in about. right covering we of we We on everyone good the yields leading out deals there now talked really but really are mix, that have backup charge pipeline in that the about they

James Feldman

renewals is Can you quantify XX [ph]? how of of the much that

Glen Weiss

exact mix into of the numbers. I'd get rather not the

James Feldman

Okay, that's you, And Steve. then, for fair. question another

about benefit commented what but on should had York the rewards based You the on thoughts early boom, plan the I'm from still the just we I your what be the or know mayoral to risk Biden City it's who race, the New the in outcome. and either thinking is on are curious game?

Steven Roth

see. let's So

races? question benefit with going is on then, will from correct? and York how the Your Is New what's mayoral that the boom,

James Feldman

that either through just the are good thoughts Biden New should are York? and the trickle think really from how the how then, plan And the what thinking benefits we mayoral Well, on risks your you to be race? about

Steven Roth

All right.

happening. is it's So other to concerned all, pretty clear that believe be so I'd side the the but a that thing only that country what like of amongst to boom. am it also I first something Normally, about think the I feeling is the The is be about. of on I in uncomfortable consensus that, think and everybody, is it's I it almost talking consensus is consensus,

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the of from by is benefit population. Senate good significant There for financial pretty fact the of you that's we program country, together these and a of first that coming York. So distribution universal significant of is the with in city York which across to of programs if to is benefits stimulus it amount terms that other I are but a is the fair, across closing package, the at terms think there in leader our nation, terms New New and deficits the it's state, policies the Biden's way, that's and clear, of in the getting the the look majority budget a

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for We time. the also choice have ranked first voting

really nobody works. So quite knows that how

believe certainly first in the in. will of I or think hopeful race. the So a in two are I'm all all that that candidates we candidates the or believe principles leading four three couple

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Operator

you. thank And

Our next Stanley. Morgan question is with Malhotra Vikram from

Vikram Malhotra

for York wondering, has a Steve obviously there the time been on the question. front the us value multi-year plentiful. view a the maybe added in morning, one, future right talked, But New you activity of given I opportunities not period, about and everyone. stress area? about over you've so on and in Thanks lot to much made you're the I'm development the is first you know development. office just just Good Maybe walk taking past comments buy, thinking can through bullish how the

Haim Chera

they think been loaded way able am this has we there York, have been on to New buying you have period opportunities cycles, add on to we unique like which we that disappointed I up value New past are we is that's do not this think we extremely out. has are, over and bullish our position. and in say York, worked not years, the I by but as the heard As that in distressed something today

of weird recession, like did our shut by income were didn't certain a $XXX and really in So hurt cetera. garages, nick We've terms kind our et main of a down, businesses signage our but this businesses million because a been gone period. our recession, it occupancies, is COVID-caused it through

to in something that we have very is thoughtful little by and But disappointed benefit is I'm of is five have buy view, other and one really a the able of been we've low out best we've in we I in that chronically my toward the are to developments think bit be the low is, the distress rates going going before think very we is in that. hard, hasn't great interest to Penn so what been the that a our XX-year business low, the they're the opportunity there? away far which District, believe On forever, to I do But investing interest has what is like investments be about of which great to if subscribe and of I So that other been much there looking even view. that. and terms historically one hand, one that's and looks be capital

Vikram Malhotra

Okay, thank quick ones. you. Two more real

enough talk Avenue. start rent levels premium attract of Xth, in to you retailers street that some fill portfolio? vacancy come Just on terms in on to that you up a to on the just more have the where vacancies corridor, maybe do where you low particularly are Xth Just really are and we to the us wondering Can retail and how back leases? signing about start and we of are specifically

Steven Roth

minutes way, cycle As market a that the a almost think By brick-and-mortar to been which of shopping, Haim very sort from secular cycles which a difficult change to steeper. how else, is a the go. we this through we cycle. of Internet times, said many is this ago, I predict addition can we've couple the retailer Nonetheless, is the everything because it's change secular cycle in have makes cycle much these

vacancy. of lots there's So

even and demand, with business group unique the the that's of quality months at during can as New this highest point Haim now, add the who want in is to and they that scooped a are are have be process that to have to up and that that operate highest the retailers the recognize the get the beginning models important The the and and said and the sites. rents thrive aggressively space realize this price few ago, the tenants to so have York, beginning vacancy happens rise risk. first vacancies thing highest commands whole reasonable is recognize to absorbed, When bottom, that thrived add, happen rents the beginning by that who is value to thought a

Madison recently, examples lease recently on the example we extended we Street and is is that. Fendi that a of Tod's Avenue Madison with Street of XX and So multiple did with on XX deal an there that other and Avenue

So wouldn't the That's what's that's disappear going meaningless. on spot to will happen a year. that rents today, in rent the is I rent focus

And smart and, a with so, cause you model totally years that in different market, will from that will months what's you'll shift rents. to have to business monumentally the much XX see market be market the and and happening three a will a or players, a the good so, higher is year, which now, beginning space players different that are absorb or thriving see a in works

Vikram Malhotra

recognized in Can quick numbers? And ramp just XX the us this the then, that's does the remind you contribution there already Facebook. months? just how some over one to maybe clarification GAAP that year, is of on next And X that

Steven Roth

with City it square we square foot Farley unique and million country that feet multi-hundred the not to price. covers are XXX,XXX we on In totally courage with to which to New did across with is than multi-multi York lease where if is deal pandemic even unique going financial We're the for floor being that recent to dollar a of Facebook scale remember with summer the in XXX,XXX in of it lease, very the is and that and you commitment. other a details believe somebody foot the comment are I and pleased Facebook XXX,XXX a the sign say of scale we the height relationship square the Facebook us. give Facebook, a it feel for takes The with you they lease hand for believe think the most space is so they pleased of low-rise our

to of can't to comment to the not space. excited, talk some occupiers they financial anecdotally are their we than into wait details. get we're that engineers, And their, this other very going So their they on

Vikram Malhotra

Thank you.

Operator

from with Street. Green next We have our Daniel Ismail question

Daniel Ismail

just office to concessions believe thank a was mentioned I their Glenn, Great, I curious, level you return you. concessions. reference the a is to current and stabilization or pre-COVID announce. that maintaining

Glen Weiss

pre-for sure, but get to the rising, not sure. a for back pre, have they as not stabilizing, is yet, pandemic reference to is to we're not I'm stopped pre-we're goal now back there during For

I'm So as talking during will tighten environment pandemic up a the the in market about then, up well. tightened markets, current concessions the little bit the comment up the has the market when same the about tightens

Daniel Ismail

quick a just then any ground at me lease And the question it. Got X? PENN, on update on from PENN

Glen Weiss

No.

Daniel Ismail

Got you be? bigger it. overall non-office non-office how a question gaming, a opportunities et mentioned can the a few like the big on of in letter, annual then non-office cetera And assets, the view some studios, opportunities of do these company. you of picture as percentage How

Steven Roth

question. unanswerable was, reason the are The think not the would things may to be below that that an working imminent. in our I we'd shareholders that like even some put though there had, that know surface That's of they I

and issued that to York There and but state example, legislation following stuff company amount news basic for New of that there's are gaming in the is New the gaming about fair down targeted not thing. everybody this. for are a that So been are interesting recently an there that where York knows who our are New they of New following follows, three that enabling flow knows so York licenses yet the York be in about in people

budget deficit in knows. because little Now but that deficits urgency XXXX of great be also those et three press may and had be because licenses are scheduled those the there maybe cetera. to close who bit these speculation has accelerated government's released federal earlier The a deal but that a been

will and competing receiving probably So the and who for from those been we portfolio multiple largest have licenses. applying those the we we incoming for operators have gaming be industry licenses

from properties of have we is the assets so turns they're we potential for have best, assets And probably kind [ph] this it probably the gotten consensus that are the that our activity. and have been out and inquiries suited multiple Manhattan that best

in realize gaming in enabling was passed So Manhattan. mean There a is six five now, ago. legislation, the or four we is prohibition I that or years there against which

assets our and is So prohibition. coming about why that's of operators the in the inquiries are when a disconnect there multiple sort

maybe a lot cetera. sort market well, prohibition make doesn't the of sense, So of is that saying, et

think about, our region that third there be about which lot make be, one a So does was Long of Manhattan, three revenue wish. and to when and the Westchester that would be third a goose to it you would competition going school this be be I as licenses doesn't direct sense in on systems. short sense one terms issue, license leaves One is to issued two is Island, make the getting would in region. [indiscernible] well that then and then may for of I for be one this And golden wrote

impossible is a we'll are with comes can spreadsheet. to how This it's have that and a political to complicated that predict folks. that out, say assets your in goes but you this So all we the of interest these is, discount multiple high where And satisfying can I interest. see incoming zero process

happen, Although would interesting. be financially it it if did

being industry We the have gaming operator in interest no being no, an that. no, anything is or like or

story. the is what respect vendor. of exactly That's the same business We estate soundstage real a are do. With we

are vendor. We estate a real

responding although an a the going is which part where deal not think of I would We streaming being whatever Hollywood, industry have interest Manhattan incomings from are hot, they bit that's unbelievably industry, great us a in the to is. have somewhere because we and to some talent is of are in like which

think because knows. background. large become the in I are but of not going undoubtedly These to into ideas, business, are the entitled know the letter, shareholders these which So our on that of our will I some things parts put are who

interesting it's at to Hollywood I could fantasize but East issue remember won't look it to about. [ph] an become the PENN of sort sure, thing PENN - Just said, for

Glen Weiss

be. to our we that about that. maximize so Daniel me a value just which have can for et what come the Steve and we how got the look to and booming, you repurposed work is to is these today every And I point the and asset. our how we referenced do assets but lot accretive think our do objective, job the are, look anything every be and streaming direction is and Steve rock value do to we some on do guys of can what shareholders that's business would may to dynamics maximize you cetera so we gaming of the talked Right, assets different day, of we our all under be things every every here key

Daniel Ismail

fiscal further at density any to Is given and start? Great. I concerns the deficit, potential you the very potentially getting And mentioned appreciate Steve. I if follow-up the color. a may, around then or there budget quick to

Steven Roth

positive more promulgated pending the PENN There general Station. is has is state sort in was initiatives, that. by involved take the a which the a which that And GPP introduced and of Economic that a by densities two are there Commission circle assets plan, Development supply would which been things than state

from is a first everybody everybody, point a esthetic point favor of in The of view, point is view. logistics point an improving view, that is, from from usability Station a from of PENN traffic of view of and

money. in which railroads involved involves that, the attempts multiple public and so are actively do state the And to government

planning at that city any principle that's accepted hub a transit density should the it's and addition, In in land us. totally surrounding be most and the

So going that's cetera. common community it's through in now, et periods, process

you know is there lot that so, going a in on And regard.

Daniel Ismail

everyone. Thanks Great.

Operator

you. thank And

our queue. in last have Alexander Piper is question from with It We Goldfarb Sandler.

Alexander Goldfarb

thank you. go the I temptation and to back, mentioned Hey, just Thank Merrill. Steve. you, want you about

was past taxes on X the look situation those about are to At repeal think business all the, doesn't time which are leaving. but and when the it in I who people billion really Jamie, are leaders likely. wealthy salt asked look the just who same you the the Merrell

with about, and into the you you, Steve, pushback you billions do stock, there the about think you're Albany tail? when of ago you dollars think encouraging the almost on how you asked seems people is Station the few investment relocate. to we tracking Amazon, some of PENN putting of mentioned do reconcile sort of area to So do temptation, do couple a be years seems be how How that to

Steven Roth

capital will New be, the New will center of the high always will place there children me New tax and Look, it be New a States. business it will Puerto New be United be York live in continue and want continue will always the go York to to York, Rico. be great, to York of to commerce always be York to My

by can or I of to are $X going some terms who in jobs being is are businesses all out who are trillionaires, Florida. Now backbone happening. the California people something [indiscernible] are future New New saying of to the in the better point New Florida come Washington agree very the 'XXs do earning families, not happening is way billionaires basically the with and you XX than even is cetera, XXX,XXX; upon are What million be loss jobs whose by the the York country Whose anywhere. that in is New where live who York et in anywhere happening of folks of it's runner hedge York do at three times else. to they aware in they that way raising of and York heads that and governments, the It's earners, a depends but and California can can, is taxation, are the prime high age more the second and management aggressively by they is their who way may folks Texas folks the retirement fund it's various not flee price they here, XX it more, of their I'm the XXX,XXX of backbone the XXX,XXX; around the the of

As and York people, York, a small people headquarters to building talent long York, And holds, live York, stay York staying to loves financially of there York very about the to New live who where is that in are as Chase has entrepreneurs New are. talking that's New will and wants not in jobs can much that in forth, like New as it the anywhere mass the New has of be very has I'm these The pretty number in although they live stay JPMorgan to unique New that in because buildings, New new are are, businesses we see etcetera. fine. and York the

Alexander Goldfarb

GDP at ago, Yeah, it's but. share XX% X. decades now of Steve, look York it New down two when you to was

clear that be here? the depends and to it's So elsewhere that's something that on seems seems outpacing its be script economic the laurels, biggest New just growth to where is York historic

Steven Roth

Well, lot going and of think a think product. to New is get my you [indiscernible] up and are be it's demand you all because not I'm for some I the and these to and is to you a have date that growing, go fast as as certainly to our to that places but not we set other friends say. all talk a answer there York smaller still contracting growing will

Alexander Goldfarb

like That's it why print. Listen, we you. writing in Thank Steve.

Operator

Thanks, Alex.

Operator

Thank you.

queue. questions further now Mr. no the over for to I have will closing We in Roth call remarks. turn Steven

Steven Roth

We everybody. our in interesting When company. your Thanks, we appreciate interest your and participation. We provocative quarterly your appreciate next questions is certainly appreciate and the call?

Operator

August Tuesday, X.

Steven Roth

and to all person So, Thank in dying XX Tuesday, that with in don't you will are see talk We'll quarterly on. you. you. to we're going and the we're is see then. X you dying things we interesting at you you o'clock. If and you about see person; see we before next see break our August call of bread And

Operator

you This Thank your you, participation. ladies Thank concludes conference. today's gentlemen. and for

now You may disconnect.

Vornado Realty Trust (VNO) 5 May 212021 Q1 Earnings call transcript