Vornado Realty Trust (VNO) filed Quarterly Report for the period ended 2009-09-30.
Vornado Realty Trust is a fully-integrated real estate investment trust. The company owns directly or indirectly the following: Office Building Properties; Retail Properties; Merchandise Mart Properties; Temperature Controlled Logistics; and Other Real Estate Investments. It is one of the largest property owners in New York City. Vornado Realty Trust has a market cap of $10.76 billion; its shares were traded at around $60.24 with a P/E ratio of 11.8 and P/S ratio of 4. The dividend yield of Vornado Realty Trust stocks is 1.6%. Vornado Realty Trust had an annual average earning growth of 13.5% over the past 10 years. GuruFocus rated Vornado Realty Trust the business predictability rank of 2.5-star.
Highlight of Business Operations:
Net income attributable to common shareholders for the quarter ended September 30, 2009 was $126,348,000, or $0.69 per diluted share, versus net income of $22,736,000, or $0.14 per diluted share, for the quarter ended September 30, 2008. Net income for the quarters ended September 30, 2009 and 2008 includes $43,329,000 and $1,313,000, respectively, of net gains on sale of real estate. In addition, net income for the quarters ended September 30, 2009 and 2008 includes certain items that affect comparability which are listed in the table below. The aggregate of the net gains on sale of real estate and the items in the table below, net of amounts attributable to noncontrolling interests, increased net income attributable to common shareholders for the quarter ended September 30, 2009 by $52,847,000, or $0.29 per diluted share and decreased net income attributable to common shareholders for the quarter ended September 30, 2008 by $32,260,000, or $0.20 per diluted share.
Funds from operations attributable to common shareholders plus assumed conversions (“FFO”) for the quarter ended September 30, 2009 was $234,246,000, or $1.25 per diluted share, compared to $159,838,000, or $0.97 per diluted share, for the prior year’s quarter. FFO for the quarters ended September 30, 2009 and 2008 includes certain items that affect comparability which are listed in the table below. The aggregate of these items, net of amounts attributable to noncontrolling interests, increased FFO for the quarter ended September 30, 2009 by $12,870,000, or $0.07 per diluted share and decreased FFO for the quarter ended September 30, 2008 by $33,454,000 or $0.20 per diluted share.
Net income attributable to common shares for the nine months ended September 30, 2009 was $200,285,000, or $1.16 per diluted share, versus $529,157,000, or $3.22 per diluted share, for the nine months ended September 30, 2008. Net income for the nine months ended September 30, 2009 and 2008 includes $44,002,000, and $65,918,000, respectively, of net gains on sale of real estate. In addition, net income for the nine months ended September 30, 2009 and 2008 includes certain items that affect comparability which are listed in the table below. The aggregate of net gains on sale of real estate and the items in the table below, net of amounts attributable to noncontrolling interests, decreased net income attributable to common shareholders for the nine months ended September 30, 2009 by $55,408,000, or $0.32 per diluted share and increased net income attributable to common shareholders for the nine months ended September 30, 2008 by $274,825,000, or $1.67 per diluted share.
FFO for the nine months ended September 30, 2009 was $602,825,000, or $3.37 per diluted share, compared to $894,829,000, or $5.27 per diluted share, for the prior year’s nine months. FFO for the nine months ended September 30, 2009 and 2008 includes certain items that affect comparability which are listed in the table below. The aggregate of these items, net of amounts attributable to noncontrolling interests, decreased FFO for the nine months ended September 30, 2009 by $96,077,000, or $0.53 per diluted share and increased FFO for the nine months ended September 30, 2008 by $222,201,000, or $1.31 per diluted share.
During the first quarter of 2009, we purchased $81,534,000 (aggregate face amount) of our senior unsecured notes for $75,977,000 in cash. In the second quarter of 2009, pursuant to our April 30, 2009 tender offer, we purchased an additional $173,321,000 (aggregate face amount) of our senior unsecured notes for $169,832,000 in cash. In addition, upon maturity in August 2009, we repaid the remaining $97,900,000 of our 4.5% senior unsecured notes.
On June 24, 2009, Toys “R” Us, Inc. (“Toys”) in which we own a 32.7% interest, extended its $2.0 billion credit facility which was to expire in July 2010, to May 2012. The borrowing capacity under the amended facility will remain at $2.0 billion through the original maturity date in July 2010 and will continue at $1.5 billion thereafter. The interest rate will be LIBOR plus 3.20%, which may vary based on availability, through July 2010 and LIBOR plus 4.00%, subject to usage, thereafter. In addition, on July 9, 2009, Toys issued $950 million aggregate principal amount of senior unsecured notes due in 2017 at 97.399%. The proceeds from the issuance, along with existing cash, were used to repay the outstanding balance under its $1.3 billion senior credit facility, which was subsequently terminated.
VNO is in the portfolios of Third Avenue Management, Ken Heebner of CAPITAL GROWTH MANAGEMENT LP, Chris Davis of Davis Selected Advisers, David Dreman of Dreman Value Management.
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