Vornado Realty Trust (VNO, Financial) filed Quarterly Report for the period ended 2009-06-30.
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 $9.02 billion; its shares were traded at around $51.82 with a P/E ratio of 9.7 and P/S ratio of 3.3. The dividend yield of Vornado Realty Trust stocks is 3.6%. 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.
Net loss attributable to common shareholders for the quarter ended June 30, 2009 was $51,904,000, or $0.30 per diluted share, versus net income of $116,858,000, or $0.72 per diluted share, for the quarter ended June 30, 2008. Net income for the quarter ended June 30, 2008 includes $58,603,000 of net gains on sale of real estate. In addition, net loss for the quarter ended June 30, 2009 and net income for the quarter ended June 30, 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 loss attributable to common shareholders for the quarter ended June 30, 2009 by $91,516,000, or $0.53 per diluted share and increased net income attributable to common shareholders for the quarter ended June 30, 2008 by $48,971,000, or $0.30 per diluted share.
Funds from operations attributable to common shareholders plus assumed conversions (FFO) for the quarter ended June 30, 2009 was $93,515,000, or $0.54 per diluted share, compared to $200,784,000, or $1.19 per diluted share, for the prior years quarter. FFO for the quarters ended June 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 quarter ended June 30, 2009 by $92,700,000, or $0.53 per diluted share and decreased FFO for the quarter ended June 30, 2008 by $4,229,000 or $0.02 per diluted share.
Net income attributable to common shares for the six months ended June 30, 2009 was $73,937,000, or $0.44 per diluted share, versus $506,421,000, or $3.08 per diluted share, for the six months ended June 30, 2008. Net income for the six months ended June 30, 2008 includes $64,605,000, of net gains on sale of real estate. In addition, net income for the six months ended June 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 six months ended June 30, 2009 by $107,531,000, or $0.64 per diluted share and increased net income attributable to common shareholders for the six months ended June 30, 2008 by $307,739,000, or $1.82 per diluted share.
FFO for the six months ended June 30, 2009 was $355,777,000, or $2.12 per diluted share, compared to $728,667,000, or $4.32 per diluted share, for the prior years six months. FFO for the six months ended June 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 six months ended June 30, 2009 by $108,194,000, or $0.64 per diluted share and increased FFO for the six months ended June 30, 2008 by $255,491,000, or $1.52 per diluted share.
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.
Read the The complete ReportVNO is in the portfolios of John Griffin of Blue Ridge Capital, Third Avenue Management, Ken Heebner of CAPITAL GROWTH MANAGEMENT LP, Chris Davis of Davis Selected Advisers, David Dreman of Dreman Value Management.
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 $9.02 billion; its shares were traded at around $51.82 with a P/E ratio of 9.7 and P/S ratio of 3.3. The dividend yield of Vornado Realty Trust stocks is 3.6%. 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:
The trends discussed above have had an impact on our financial results in the first half of 2009. As shown in our table of leasing statistics by segment on page 41 of this Overview, changes in occupancy rates from December 31, 2008 to June 30, 2009 ranged from a decrease of 60 basis points for each of our New York Office and Retail portfolios, to an increase of 40 basis points for our Washington, DC Office portfolio. Initial rents on space re-leased during 2009 exceeded expiring escalated rents, although at spreads below increases achieved during 2008. During the quarter ended June 30, 2009, we recorded a $122,738,000 mezzanine loans receivable valuation allowance. At June 30, 2009, the market values of our investment in Lexington Realty Trust (NYSE: LXP) common shares and our marketable securities portfolio were $10,253,000 and $14,312,000, respectively, below their adjusted cost bases. We have concluded that, as of June 30, 2009, the declines in the value of these investments were not other-than-temporary. As of July 31, 2009, the market values of these investments have recovered significantly and are $3,123,000 higher in the aggregate, than their June 30, 2009 market values, and continue to be subject to market fluctuations. It is not possible for us to quantify the impact of the above trends, which may persist for the remainder of 2009 and beyond, on our future financial results.Net loss attributable to common shareholders for the quarter ended June 30, 2009 was $51,904,000, or $0.30 per diluted share, versus net income of $116,858,000, or $0.72 per diluted share, for the quarter ended June 30, 2008. Net income for the quarter ended June 30, 2008 includes $58,603,000 of net gains on sale of real estate. In addition, net loss for the quarter ended June 30, 2009 and net income for the quarter ended June 30, 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 loss attributable to common shareholders for the quarter ended June 30, 2009 by $91,516,000, or $0.53 per diluted share and increased net income attributable to common shareholders for the quarter ended June 30, 2008 by $48,971,000, or $0.30 per diluted share.
Funds from operations attributable to common shareholders plus assumed conversions (FFO) for the quarter ended June 30, 2009 was $93,515,000, or $0.54 per diluted share, compared to $200,784,000, or $1.19 per diluted share, for the prior years quarter. FFO for the quarters ended June 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 quarter ended June 30, 2009 by $92,700,000, or $0.53 per diluted share and decreased FFO for the quarter ended June 30, 2008 by $4,229,000 or $0.02 per diluted share.
Net income attributable to common shares for the six months ended June 30, 2009 was $73,937,000, or $0.44 per diluted share, versus $506,421,000, or $3.08 per diluted share, for the six months ended June 30, 2008. Net income for the six months ended June 30, 2008 includes $64,605,000, of net gains on sale of real estate. In addition, net income for the six months ended June 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 six months ended June 30, 2009 by $107,531,000, or $0.64 per diluted share and increased net income attributable to common shareholders for the six months ended June 30, 2008 by $307,739,000, or $1.82 per diluted share.
FFO for the six months ended June 30, 2009 was $355,777,000, or $2.12 per diluted share, compared to $728,667,000, or $4.32 per diluted share, for the prior years six months. FFO for the six months ended June 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 six months ended June 30, 2009 by $108,194,000, or $0.64 per diluted share and increased FFO for the six months ended June 30, 2008 by $255,491,000, or $1.52 per diluted share.
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.
Read the The complete ReportVNO is in the portfolios of John Griffin of Blue Ridge Capital, Third Avenue Management, Ken Heebner of CAPITAL GROWTH MANAGEMENT LP, Chris Davis of Davis Selected Advisers, David Dreman of Dreman Value Management.
