Quarter Ended
NET INCOME attributable to common shareholders for the quarter ended
FUNDS FROM OPERATIONS ("FFO") attributable to common shareholders plus assumed conversions (non-GAAP) for the quarter ended
Nine Months Ended
NET INCOME attributable to common shareholders for the nine months ended
FFO attributable to common shareholders plus assumed conversions (non-GAAP) for the nine months ended
The following table reconciles net income attributable to common shareholders to net income attributable to common shareholders, as adjusted (non-GAAP):
(Amounts in thousands, except per share amounts) | For the Three Months Ended | For the Nine Months Ended | |||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||
Net income attributable to common shareholders | $ | 7,769 | $ | 37,689 | $ | 84,665 | $ | 89,817 | |||||||
Per diluted share | $ | 0.04 | $ | 0.20 | $ | 0.44 | $ | 0.47 | |||||||
Certain expense (income) items that impact net income attributable to common shareholders: | |||||||||||||||
$ | 26,613 | $ | 6,492 | $ | 44,473 | $ | 20,474 | ||||||||
Deferred tax liability on our investment in Farley Office and Retail (held through a taxable REIT subsidiary) | 3,776 | 1,688 | 10,183 | 1,688 | |||||||||||
Tax benefit recognized by our taxable REIT subsidiaries | — | (27,910 | ) | — | (27,910 | ) | |||||||||
After-tax net gain on sale of | — | (8,815 | ) | (6,085 | ) | (31,023 | ) | ||||||||
Net gain on sale of the | — | — | (15,213 | ) | — | ||||||||||
Refund of | — | — | (13,613 | ) | — | ||||||||||
Other | 1,477 | 15,664 | 4,137 | 10,090 | |||||||||||
31,866 | (12,881 | ) | 23,882 | (26,681 | ) | ||||||||||
Noncontrolling interests' share of above adjustments | (2,206 | ) | 1,118 | (1,895 | ) | 2,040 | |||||||||
Total of certain expense (income) items that impact net income attributable to common shareholders | $ | 29,660 | $ | (11,763 | ) | $ | 21,987 | $ | (24,641 | ) | |||||
Per diluted share (non-GAAP) | $ | 0.15 | $ | (0.06 | ) | $ | 0.12 | $ | (0.13 | ) | |||||
Net income attributable to common shareholders, as adjusted (non-GAAP) | $ | 37,429 | $ | 25,926 | $ | 106,652 | $ | 65,176 | |||||||
Per diluted share (non-GAAP) | $ | 0.19 | $ | 0.14 | $ | 0.56 | $ | 0.34 |
The following table reconciles FFO attributable to common shareholders plus assumed conversions (non-GAAP) to FFO attributable to common shareholders plus assumed conversions, as adjusted (non-GAAP):
(Amounts in thousands, except per share amounts) | For the Three Months Ended | For the Nine Months Ended | |||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||
FFO attributable to common shareholders plus assumed conversions (non-GAAP) | $ | 152,461 | $ | 158,286 | $ | 462,463 | $ | 430,057 | |||||||
Per diluted share (non-GAAP) | $ | 0.79 | $ | 0.82 | $ | 2.39 | $ | 2.24 | |||||||
Certain expense (income) items that impact FFO attributable to common shareholders plus assumed conversions: | |||||||||||||||
Deferred tax liability on our investment in Farley Office and Retail (held through a taxable REIT subsidiary) | $ | 3,776 | $ | 1,688 | $ | 10,183 | $ | 1,688 | |||||||
Tax benefit recognized by our taxable REIT subsidiaries | — | (27,910 | ) | — | (27,910 | ) | |||||||||
After-tax net gain on sale of 220 CPS condominium unit(s) and ancillary amenities | — | (8,815 | ) | (6,085 | ) | (31,023 | ) | ||||||||
Other | 1,477 | 11,394 | 3,840 | 18,698 | |||||||||||
5,253 | (23,643 | ) | 7,938 | (38,547 | ) | ||||||||||
Noncontrolling interests' share of above adjustments | (364 | ) | 1,570 | (550 | ) | 2,223 | |||||||||
Total of certain expense (income) items that impact FFO attributable to common shareholders plus assumed conversions, net | $ | 4,889 | $ | (22,073 | ) | $ | 7,388 | $ | (36,324 | ) | |||||
Per diluted share (non-GAAP) | $ | 0.02 | $ | (0.11 | ) | $ | 0.04 | $ | (0.19 | ) | |||||
FFO attributable to common shareholders plus assumed conversions, as adjusted (non-GAAP) | $ | 157,350 | $ | 136,213 | $ | 469,851 | $ | 393,733 | |||||||
Per diluted share (non-GAAP) | $ | 0.81 | $ | 0.71 | $ | 2.43 | $ | 2.05 |
FFO, as
The following table bridges our FFO attributable to common shareholders plus assumed conversions, as adjusted (non-GAAP) for the three months ended
(Amounts in millions, except per share amounts) | FFO, as Adjusted | ||||||
Amount | Per Share | ||||||
FFO attributable to common shareholders plus assumed conversions, as adjusted (non-GAAP) for the three months ended | $ | 136.2 | $ | 0.71 | |||
Increase (decrease) in FFO, as adjusted due to: | |||||||
Prior period accrual adjustments recorded in the third quarter of each year related to changes in the tax-assessed value of theMART | 22.8 | ||||||
Increase in interest expense, net of increase in interest income | (22.5 | ) | |||||
Rent commencement and other tenant related items | 15.6 | ||||||
Variable businesses (primarily signage and trade shows) | 9.5 | ||||||
Straight-line impact of PENN 1 2023 estimated ground rent reset | (5.8 | ) | |||||
Other, net | 2.6 | ||||||
22.2 | |||||||
Noncontrolling interests' share of above items | (1.0 | ) | |||||
Net increase | 21.2 | 0.10 | |||||
FFO attributable to common shareholders plus assumed conversions, as adjusted (non-GAAP) for the three months ended | $ | 157.4 | $ | 0.81 |
See page 11 for a reconciliation of net income attributable to common shareholders to FFO attributable to common shareholders plus assumed conversions (non-GAAP) for the three and nine months ended
Dispositions:
220 CPS
During the nine months ended
On
On
On
Financings:
On
On
Financings - continued:
Unsecured Revolving Credit Facility
On
Unsecured Term Loan
On
On
Interest Rate Hedging Activities
During the nine months ended
The table below presents the interest rate swap arrangements entered into during the nine months ended
(Amounts in thousands) | Notional Amount | All-In Swapped Rate | Swap Expiration Date | Variable Rate Spread | |||||
$ | 700,000 | 4.98% | 07/27 | S+225 | |||||
Unsecured revolving credit facility | 575,000 | 3.88% | 08/27 | S+115 | |||||
Unsecured term loan(1) | 50,000 | 4.04% | 08/27 | S+130 | |||||
Unsecured term loan (effective 10/23) | 500,000 | 4.39% | 10/26 | S+130 | |||||
480,000 | 5.06% | 06/27 | S+165 | ||||||
200,000 | 4.66% | 09/27 | L+170 |
____________________
(1) | Together with the existing | |
(2) | The remaining |
Leasing Activity:
The leasing activity and related statistics below are based on leases signed during the period and are not intended to coincide with the commencement of rental revenue in accordance with GAAP. Second generation relet space represents square footage that has not been vacant for more than nine months and tenant improvements and leasing commissions are based on our share of square feet leased during the period.
For the Three Months Ended
- 167,000 square feet of
New York Office space (140,000 square feet at share) at an initial rent of$88.99 per square foot and a weighted average lease term of 5.8 years. The changes in the GAAP and cash mark-to-market rent on the 101,000 square feet of second generation space were positive 7.2% and positive 1.8%, respectively. Tenant improvements and leasing commissions were$16.21 per square foot per annum, or 18.2% of initial rent. - 62,000 square feet of New York Retail space (57,000 square feet at share) at an initial rent of
$242.89 per square foot and a weighted average lease term of 10.5 years. The changes in the GAAP and cash mark-to-market rent on the 36,000 square feet of second generation space were negative 55.8% and negative 49.3%, respectively. Tenant improvements and leasing commissions were$17.96 per square foot per annum, or 7.4% of initial rent. - 67,000 square feet at theMART (all at share) at an initial rent of
$52.20 per square foot and a weighted average lease term of 7.3 years. The changes in the GAAP and cash mark-to-market rent on the 38,000 square feet of second generation space were negative 3.1% and negative 7.4%, respectively. Tenant improvements and leasing commissions were$11.64 per square foot per annum, or 22.3% of initial rent. - 154,000 square feet at 555 California (108,000 square feet at share) at an initial rent of
$98.20 per square foot and a weighted average lease term of 5.6 years. The changes in the GAAP and cash mark-to-market rent on the 101,000 square feet of second generation space were positive 16.0% and positive 11.9%, respectively. Tenant improvements and leasing commissions were$4.73 per square foot per annum, or 4.8% of initial rent.
For the Nine Months Ended
- 740,000 square feet of
New York Office space (607,000 square feet at share) at an initial rent of$84.49 per square foot and a weighted average lease term of 9.2 years. The changes in the GAAP and cash mark-to-market rent on the 362,000 square feet of second generation space were positive 6.2% and positive 3.9%, respectively. Tenant improvements and leasing commissions were$12.09 per square foot per annum, or 14.3% of initial rent. - 90,000 square feet of New York Retail space (85,000 square feet at share) at an initial rent of
$262.88 per square foot and a weighted average lease term of 11.6 years. The changes in the GAAP and cash mark-to-market rent on the 42,000 square feet of second generation space were negative 38.3% and negative 34.2%, respectively. Tenant improvements and leasing commissions were$21.82 per square foot per annum, or 8.3% of initial rent. - 275,000 square feet at theMART (all at share) at an initial rent of
$51.78 per square foot and a weighted average lease term of 7.2 years. The changes in the GAAP and cash mark-to-market rent on the 221,000 square feet of second generation space were negative 4.5% and negative 4.6%, respectively. Tenant improvements and leasing commissions were$10.88 per square foot per annum, or 21.0% of initial rent. - 210,000 square feet at 555 California (147,000 square feet at share) at an initial rent of
$96.40 per square foot and a weighted average lease term of 5.9 years. The changes in the GAAP and cash mark-to-market rent on the 135,000 square feet of second generation space were positive 24.3% and positive 13.6%, respectively. Tenant improvements and leasing commissions were$7.15 per square foot per annum, or 7.4% of initial rent.
Same Store Net Operating Income ("NOI") At Share:
Below is the percentage increase (decrease) in same store NOI at share and same store NOI at share - cash basis of our
Total | theMART(2) | ||||||||||
Same store NOI at share % increase (decrease)(1): | |||||||||||
Three months ended | 11.7 | % | (0.8 | )% | 456.2 | % | 1.3 | % | |||
Nine months ended | 7.4 | % | 3.0 | % | 76.1 | % | 3.5 | % | |||
Three months ended | 2.8 | % | (3.5 | )% | 79.3 | % | (3.8 | )% | |||
Same store NOI at share - cash basis % increase (decrease)(1): | |||||||||||
Three months ended | 13.8 | % | 1.1 | % | 325.8 | % | 16.7 | % | |||
Nine months ended | 9.4 | % | 4.6 | % | 71.3 | % | 12.2 | % | |||
Three months ended | 4.0 | % | (2.1 | )% | 70.7 | % | 0.4 | % |
____________________
(1) | See pages 13 through 18 for same store NOI at share and same store NOI at share - cash basis reconciliations. | |
(2) | Primarily due to (i) prior period accrual adjustments recorded in the third quarter of each year related to changes in the tax-assessed value of theMART and (ii) an increase in tradeshow activity in the third quarter of 2022. |
NOI At Share:
The elements of our
(Amounts in thousands) | For the Three Months Ended | For the Nine Months Ended | |||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||
NOI at share: | |||||||||||||||||||
Office(1) | $ | 174,790 | $ | 166,553 | $ | 182,042 | $ | 534,641 | $ | 497,238 | |||||||||
Retail | 52,127 | 49,083 | 51,438 | 155,670 | 124,998 | ||||||||||||||
Residential | 4,598 | 4,194 | 5,250 | 14,622 | 12,889 | ||||||||||||||
Alexander's | 9,639 | 9,009 | 9,362 | 27,980 | 28,567 | ||||||||||||||
— | — | — | — | (12,677 | ) | ||||||||||||||
Total | 241,154 | 228,839 | 248,092 | 732,913 | 651,015 | ||||||||||||||
Other: | |||||||||||||||||||
theMART(3) | 35,769 | 6,431 | 19,947 | 75,630 | 42,950 | ||||||||||||||
16,092 | 16,128 | 16,724 | 49,051 | 48,230 | |||||||||||||||
Other investments | 4,074 | 3,873 | 4,183 | 12,699 | 12,751 | ||||||||||||||
Total Other | 55,935 | 26,432 | 40,854 | 137,380 | 103,931 | ||||||||||||||
NOI at share | $ | 297,089 | $ | 255,271 | $ | 288,946 | $ | 870,293 | $ | 754,946 |
_______________________
See notes below.
NOI At Share - Cash Basis:
The elements of our
(Amounts in thousands) | For the Three Months Ended | For the Nine Months Ended | |||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||
NOI at share - cash basis: | |||||||||||||||||||
Office(1) | $ | 174,606 | $ | 170,521 | $ | 180,326 | $ | 532,759 | $ | 504,939 | |||||||||
Retail | 48,096 | 45,175 | 47,189 | 142,678 | 116,265 | ||||||||||||||
Residential | 4,556 | 4,136 | 4,309 | 13,554 | 11,898 | ||||||||||||||
Alexander's | 10,434 | 9,790 | 10,079 | 30,296 | 30,987 | ||||||||||||||
— | — | — | — | (12,723 | ) | ||||||||||||||
Total | 237,692 | 229,622 | 241,903 | 719,287 | 651,366 | ||||||||||||||
Other: | |||||||||||||||||||
theMART(3) | 36,772 | 8,635 | 21,541 | 78,749 | 45,976 | ||||||||||||||
16,926 | 14,745 | 16,855 | 50,141 | 45,552 | |||||||||||||||
Other investments | 4,280 | 4,191 | 4,372 | 13,292 | 13,622 | ||||||||||||||
Total Other | 57,978 | 27,571 | 42,768 | 142,182 | 105,150 | ||||||||||||||
NOI at share - cash basis | $ | 295,670 | $ | 257,193 | $ | 284,671 | $ | 861,469 | $ | 756,516 |
______________________
(1) | Includes | |
(2) | On | |
(3) | Increase primarily due to (i) prior period accrual adjustments recorded in the third quarter of each year related to changes in the tax-assessed value of theMART and (ii) an increase in tradeshow activity in the third quarter of 2022. |
(Amounts in thousands of dollars, except square feet) | |||||||||||||||||||
Property Rentable Sq. Ft. | Cash Amount Expended | Remaining Expenditures | Stabilization Year | Projected Incremental Cash Yield | |||||||||||||||
Active PENN District Projects | Segment | Budget(1) | |||||||||||||||||
Farley (95% interest) | 846,000 | 1,120,000 | (2) | 1,069,131 | (2) | 50,869 | 2022 | 6.4% | |||||||||||
PENN 2 - as expanded | 1,795,000 | 750,000 | 330,303 | 419,697 | 2025 | 9.0% | |||||||||||||
PENN 1 (including LIRR Concourse Retail)(3) | 2,546,000 | 450,000 | 354,828 | 95,172 | N/A | 12.2% | (3)(4) | ||||||||||||
Districtwide Improvements | N/A | 100,000 | 40,843 | 59,157 | N/A | N/A | |||||||||||||
Total Active PENN District Projects | 2,420,000 | 1,795,105 | 624,895 | 8.0% |
________________________________
(1) | Excluding debt and equity carry. | |
(2) | Net of 154,000 of historic tax credit investor contributions, of which 88,000 has been funded to date (at our 95% share). | |
(3) | Property is ground leased through 2098, as fully extended. Fair market value resets occur in 2023, 2048 and 2073. The 12.2% projected return is before the ground rent reset in 2023, which may be material. | |
(4) | Projected to be achieved as pre-redevelopment leases roll; approximate average remaining lease term 3.6 years. |
There can be no assurance that the above projects will be completed, completed on schedule or within budget. In addition, there can be no assurance that the Company will be successful in leasing the properties on the expected schedule or at the assumed rental rates.
Conference Call and Audio Webcast
As previously announced, the Company will host a quarterly earnings conference call and an audio webcast on
Contact
(212) 894-7000
Supplemental Data
Further details regarding results of operations, properties and tenants can be accessed at the Company’s website www.vno.com.
Certain statements contained herein may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are not guarantees of performance. They represent our intentions, plans, expectations and beliefs and are subject to numerous assumptions, risks and uncertainties. Our future results, financial condition and business may differ materially from those expressed in these forward-looking statements. You can find many of these statements by looking for words such as "approximates," "believes," "expects," "anticipates," "estimates," "intends," "plans," "would," "may" or other similar expressions in this press release. We also note the following forward-looking statements: in the case of our development and redevelopment projects, the estimated completion date, estimated project cost, projected incremental cash yield, stabilization date and cost to complete; and estimates of future capital expenditures, dividends to common and preferred shareholders and operating partnership distributions. For a discussion of factors that could materially affect the outcome of our forward-looking statements and our future results and financial condition, see “Risk Factors” in Part I, Item 1A, of our Annual Report on Form 10-K for the year ended
CONSOLIDATED BALANCE SHEETS
(Amounts in thousands) | As of | Increase (Decrease) | ||||||||||
ASSETS | ||||||||||||
Real estate, at cost: | ||||||||||||
Land | $ | 2,477,956 | $ | 2,540,193 | $ | (62,237 | ) | |||||
Buildings and improvements | 10,015,452 | 9,839,166 | 176,286 | |||||||||
Development costs and construction in progress | 802,272 | 718,694 | 83,578 | |||||||||
Leasehold improvements and equipment | 122,948 | 119,792 | 3,156 | |||||||||
Total | 13,418,628 | 13,217,845 | 200,783 | |||||||||
Less accumulated depreciation and amortization | (3,606,986 | ) | (3,376,347 | ) | (230,639 | ) | ||||||
Real estate, net | 9,811,642 | 9,841,498 | (29,856 | ) | ||||||||
Right-of-use assets | 685,298 | 337,197 | 348,101 | (1) | ||||||||
Cash, cash equivalents, restricted cash and investments in | ||||||||||||
Cash and cash equivalents | 845,423 | 1,760,225 | (914,802 | ) | ||||||||
Restricted cash | 131,625 | 170,126 | (38,501 | ) | ||||||||
Investments in | 445,165 | — | 445,165 | |||||||||
Total | 1,422,213 | 1,930,351 | (508,138 | ) | ||||||||
Tenant and other receivables | 81,004 | 79,661 | 1,343 | |||||||||
Investments in partially owned entities | 3,250,197 | 3,297,389 | (47,192 | ) | ||||||||
Real estate fund investments | 930 | 7,730 | (6,800 | ) | ||||||||
220 CPS condominium units ready for sale | 78,590 | 57,142 | 21,448 | |||||||||
Receivable arising from the straight-lining of rents | 692,733 | 656,318 | 36,415 | |||||||||
Deferred leasing costs, net | 380,221 | 391,693 | (11,472 | ) | ||||||||
Identified intangible assets, net | 142,116 | 154,895 | (12,779 | ) | ||||||||
Other assets | 630,730 | 512,714 | 118,016 | |||||||||
Total assets | $ | 17,175,674 | $ | 17,266,588 | $ | (90,914 | ) | |||||
LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND EQUITY | ||||||||||||
Liabilities: | ||||||||||||
Mortgages payable, net | $ | 5,831,769 | $ | 6,053,343 | $ | (221,574 | ) | |||||
Senior unsecured notes, net | 1,191,322 | 1,189,792 | 1,530 | |||||||||
Unsecured term loan, net | 792,847 | 797,812 | (4,965 | ) | ||||||||
Unsecured revolving credit facilities | 575,000 | 575,000 | — | |||||||||
Lease liabilities | 731,674 | 370,206 | 361,468 | (1) | ||||||||
Accounts payable and accrued expenses | 475,151 | 613,497 | (138,346 | ) | ||||||||
Deferred revenue | 41,879 | 48,118 | (6,239 | ) | ||||||||
Deferred compensation plan | 95,681 | 110,174 | (14,493 | ) | ||||||||
Other liabilities | 265,775 | 304,725 | (38,950 | ) | ||||||||
Total liabilities | 10,001,098 | 10,062,667 | (61,569 | ) | ||||||||
Redeemable noncontrolling interests | 483,302 | 688,683 | (205,381 | ) | ||||||||
Shareholders' equity | 6,438,046 | 6,236,346 | 201,700 | |||||||||
Noncontrolling interests in consolidated subsidiaries | 253,228 | 278,892 | (25,664 | ) | ||||||||
Total liabilities, redeemable noncontrolling interests and equity | $ | 17,175,674 | $ | 17,266,588 | $ | (90,914 | ) |
____________________________________________________________
(1) | In |
OPERATING RESULTS
(Amounts in thousands, except per share amounts) | For the Three Months Ended | For the Nine Months Ended | |||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||
Revenues | $ | 457,431 | $ | 409,212 | $ | 1,353,055 | $ | 1,168,130 | |||||||
Net income | $ | 20,112 | $ | 71,765 | $ | 142,390 | $ | 175,590 | |||||||
Less net loss (income) attributable to noncontrolling interests in: | |||||||||||||||
Consolidated subsidiaries | 3,792 | (5,425 | ) | (4,756 | ) | (20,323 | ) | ||||||||
Operating Partnership | (606 | ) | (2,818 | ) | (6,382 | ) | (6,683 | ) | |||||||
Net income attributable to Vornado | 23,298 | 63,522 | 131,252 | 148,584 | |||||||||||
Preferred share dividends | (15,529 | ) | (16,800 | ) | (46,587 | ) | (49,734 | ) | |||||||
Series K preferred share issuance costs | — | (9,033 | ) | — | (9,033 | ) | |||||||||
Net income attributable to common shareholders | $ | 7,769 | $ | 37,689 | $ | 84,665 | $ | 89,817 | |||||||
Income per common share - basic: | |||||||||||||||
Net income per common share | $ | 0.04 | $ | 0.20 | $ | 0.44 | $ | 0.47 | |||||||
Weighted average shares outstanding | 191,793 | 191,577 | 191,756 | 191,508 | |||||||||||
Income per common share - diluted: | |||||||||||||||
Net income per common share | $ | 0.04 | $ | 0.20 | $ | 0.44 | $ | 0.47 | |||||||
Weighted average shares outstanding | 192,018 | 192,041 | 192,042 | 192,151 | |||||||||||
FFO attributable to common shareholders plus assumed conversions (non-GAAP) | $ | 152,461 | $ | 158,286 | $ | 462,463 | $ | 430,057 | |||||||
Per diluted share (non-GAAP) | $ | 0.79 | $ | 0.82 | $ | 2.39 | $ | 2.24 | |||||||
FFO attributable to common shareholders plus assumed conversions, as adjusted (non-GAAP) | $ | 157,350 | $ | 136,213 | $ | 469,851 | $ | 393,733 | |||||||
Per diluted share (non-GAAP) | $ | 0.81 | $ | 0.71 | $ | 2.43 | $ | 2.05 | |||||||
Weighted average shares used in determining FFO attributable to common shareholders plus assumed conversions per diluted share | 193,808 | 192,067 | 193,429 | 192,177 |
FFO is computed in accordance with the definition adopted by the
NON-GAAP RECONCILIATIONS
The following table reconciles net income attributable to common shareholders to FFO attributable to common shareholders plus assumed conversions:
(Amounts in thousands, except per share amounts) | For the Three Months Ended | For the Nine Months Ended | |||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||
Net income attributable to common shareholders | $ | 7,769 | $ | 37,689 | $ | 84,665 | $ | 89,817 | |||||||
Per diluted share | $ | 0.04 | $ | 0.20 | $ | 0.44 | $ | 0.47 | |||||||
FFO adjustments: | |||||||||||||||
Depreciation and amortization of real property | $ | 122,438 | $ | 86,180 | $ | 335,020 | $ | 256,295 | |||||||
Real estate impairment losses | — | 7,880 | — | 7,880 | |||||||||||
Net gain on sale of real estate | — | — | (28,354 | ) | — | ||||||||||
Proportionate share of adjustments to equity in net income of partially owned entities to arrive at FFO: | |||||||||||||||
Depreciation and amortization of real property | 32,584 | 35,125 | 98,404 | 104,829 | |||||||||||
Net loss (gain) on sale of real estate | 6 | — | (169 | ) | (3,052 | ) | |||||||||
Decrease (increase) in fair value of marketable securities | — | 287 | — | (1,118 | ) | ||||||||||
155,028 | 129,472 | 404,901 | 364,834 | ||||||||||||
Noncontrolling interests' share of above adjustments | (10,731 | ) | (8,886 | ) | (28,018 | ) | (24,627 | ) | |||||||
FFO adjustments, net | $ | 144,297 | $ | 120,586 | $ | 376,883 | $ | 340,207 | |||||||
FFO attributable to common shareholders | $ | 152,066 | $ | 158,275 | $ | 461,548 | $ | 430,024 | |||||||
Impact of assumed conversion of dilutive convertible securities | 395 | 11 | 915 | 33 | |||||||||||
FFO attributable to common shareholders plus assumed conversions | $ | 152,461 | $ | 158,286 | $ | 462,463 | $ | 430,057 | |||||||
Per diluted share | $ | 0.79 | $ | 0.82 | $ | 2.39 | $ | 2.24 | |||||||
Reconciliation of weighted average shares outstanding: | |||||||||||||||
Weighted average common shares outstanding | 191,793 | 191,577 | 191,756 | 191,508 | |||||||||||
Effect of dilutive securities: | |||||||||||||||
Convertible securities | 1,790 | (1) | 26 | 1,407 | (1) | 26 | |||||||||
Share-based payment awards | 225 | 464 | 266 | 643 | |||||||||||
Denominator for FFO per diluted share | 193,808 | 192,067 | 193,429 | 192,177 |
______________________
(1) | On |
NON-GAAP RECONCILIATIONS - CONTINUED
Below is a reconciliation of net income to NOI at share and NOI at share - cash basis for the three and nine months ended
For the Three Months Ended | For the Nine Months Ended | ||||||||||||||||||
(Amounts in thousands) | |||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||
Net income | $ | 20,112 | $ | 71,765 | $ | 68,903 | $ | 142,390 | $ | 175,590 | |||||||||
Depreciation and amortization expense | 134,526 | 100,867 | 118,662 | 370,631 | 285,998 | ||||||||||||||
General and administrative expense | 29,174 | 25,553 | 31,902 | 102,292 | 100,341 | ||||||||||||||
Transaction related costs and other | 996 | 9,681 | 2,960 | 4,961 | 10,630 | ||||||||||||||
Income from partially owned entities | (24,341 | ) | (26,269 | ) | (25,720 | ) | (83,775 | ) | (86,768 | ) | |||||||||
Loss (income) from real estate fund investments | 111 | 66 | 142 | (5,421 | ) | (5,107 | ) | ||||||||||||
Interest and other investment income, net | (5,228 | ) | (633 | ) | (3,036 | ) | (9,282 | ) | (3,694 | ) | |||||||||
Interest and debt expense | 76,774 | 50,946 | 62,640 | 191,523 | 152,904 | ||||||||||||||
Net gains on disposition of wholly owned and partially owned assets | — | (10,087 | ) | (28,832 | ) | (35,384 | ) | (35,811 | ) | ||||||||||
Income tax expense (benefit) | 3,711 | (25,376 | ) | 3,564 | 14,686 | (20,551 | ) | ||||||||||||
NOI from partially owned entities | 76,020 | 75,644 | 74,060 | 228,772 | 231,635 | ||||||||||||||
NOI attributable to noncontrolling interests in consolidated subsidiaries | (14,766 | ) | (16,886 | ) | (16,299 | ) | (51,100 | ) | (50,221 | ) | |||||||||
NOI at share | 297,089 | 255,271 | 288,946 | 870,293 | 754,946 | ||||||||||||||
Non-cash adjustments for straight-line rents, amortization of acquired below-market leases, net and other | (1,419 | ) | 1,922 | (4,275 | ) | (8,824 | ) | 1,570 | |||||||||||
NOI at share - cash basis | $ | 295,670 | $ | 257,193 | $ | 284,671 | $ | 861,469 | $ | 756,516 |
NOI at share represents total revenues less operating expenses including our share of partially owned entities. NOI at share - cash basis represents NOI at share adjusted to exclude straight-line rental income and expense, amortization of acquired below and above market leases, net and other non-cash adjustments. We consider NOI at share - cash basis to be the primary non-GAAP financial measure for making decisions and assessing the unlevered performance of our segments as it relates to the total return on assets as opposed to the levered return on equity. As properties are bought and sold based on NOI at share - cash basis, we utilize this measure to make investment decisions as well as to compare the performance of our assets to that of our peers. NOI at share and NOI at share - cash basis should not be considered alternatives to net income or cash flow from operations and may not be comparable to similarly titled measures employed by other companies.
NON-GAAP RECONCILIATIONS - CONTINUED
Same store NOI at share represents NOI at share from operations which are in service in both the current and prior year reporting periods. Same store NOI at share - cash basis is same store NOI at share adjusted to exclude straight-line rental income and expense, amortization of acquired below and above market leases, net and other non-cash adjustments. We present these non-GAAP measures to (i) facilitate meaningful comparisons of the operational performance of our properties and segments, (ii) make decisions on whether to buy, sell or refinance properties, and (iii) compare the performance of our properties and segments to those of our peers. Same store NOI at share and same store NOI at share - cash basis should not be considered alternatives to net income or cash flow from operations and may not be comparable to similarly titled measures employed by other companies.
Below are reconciliations of NOI at share to same store NOI at share for our
(Amounts in thousands) | Total | theMART | Other | ||||||||||||||||
NOI at share for the three months ended | $ | 297,089 | $ | 241,154 | $ | 35,769 | $ | 16,092 | $ | 4,074 | |||||||||
Less NOI at share from: | |||||||||||||||||||
Change in ownership interest in | (2,106 | ) | (2,106 | ) | — | — | — | ||||||||||||
Dispositions | (88 | ) | (88 | ) | — | — | — | ||||||||||||
Development properties | (22,914 | ) | (22,914 | ) | — | — | — | ||||||||||||
Other non-same store income, net | (6,149 | ) | (2,075 | ) | — | — | (4,074 | ) | |||||||||||
Same store NOI at share for the three months ended | $ | 265,832 | $ | 213,971 | $ | 35,769 | $ | 16,092 | $ | — | |||||||||
NOI at share for the three months ended | $ | 255,271 | $ | 228,839 | $ | 6,431 | $ | 16,128 | $ | 3,873 | |||||||||
Less NOI at share from: | |||||||||||||||||||
Dispositions | (2,754 | ) | (2,754 | ) | — | — | — | ||||||||||||
Development properties | (6,302 | ) | (6,055 | ) | — | (247 | ) | — | |||||||||||
Other non-same store income, net | (8,198 | ) | (4,325 | ) | — | — | (3,873 | ) | |||||||||||
Same store NOI at share for the three months ended | $ | 238,017 | $ | 215,705 | $ | 6,431 | $ | 15,881 | $ | — | |||||||||
Increase (decrease) in same store NOI at share | $ | 27,815 | $ | (1,734 | ) | $ | 29,338 | $ | 211 | $ | — | ||||||||
% increase (decrease) in same store NOI at share | 11.7 | % | (0.8 | )% | 456.2 | % | 1.3 | % | 0.0 | % |
NON-GAAP RECONCILIATIONS - CONTINUED
Below are reconciliations of NOI at share - cash basis to same store NOI at share - cash basis for our
(Amounts in thousands) | Total | theMART | Other | ||||||||||||||||
NOI at share - cash basis for the three months ended | $ | 295,670 | $ | 237,692 | $ | 36,772 | $ | 16,926 | $ | 4,280 | |||||||||
Less NOI at share - cash basis from: | |||||||||||||||||||
Change in ownership interest in | (1,502 | ) | (1,502 | ) | — | — | — | ||||||||||||
Dispositions | (88 | ) | (88 | ) | — | — | — | ||||||||||||
Development properties | (15,796 | ) | (15,796 | ) | — | — | — | ||||||||||||
Other non-same store income, net | (6,573 | ) | (2,293 | ) | — | — | (4,280 | ) | |||||||||||
Same store NOI at share - cash basis for the three months ended | $ | 271,711 | $ | 218,013 | $ | 36,772 | $ | 16,926 | $ | — | |||||||||
NOI at share - cash basis for the three months ended | $ | 257,193 | $ | 229,622 | $ | 8,635 | $ | 14,745 | $ | 4,191 | |||||||||
Less NOI at share - cash basis from: | |||||||||||||||||||
Dispositions | (3,436 | ) | (3,436 | ) | — | — | — | ||||||||||||
Development properties | (6,852 | ) | (6,605 | ) | — | (247 | ) | — | |||||||||||
Other non-same store income, net | (8,064 | ) | (3,873 | ) | — | — | (4,191 | ) | |||||||||||
Same store NOI at share - cash basis for the three months ended | $ | 238,841 | $ | 215,708 | $ | 8,635 | $ | 14,498 | $ | — | |||||||||
Increase in same store NOI at share - cash basis | $ | 32,870 | $ | 2,305 | $ | 28,137 | $ | 2,428 | $ | — | |||||||||
% increase in same store NOI at share - cash basis | 13.8 | % | 1.1 | % | 325.8 | % | 16.7 | % | 0.0 | % |
NON-GAAP RECONCILIATIONS - CONTINUED
Below are reconciliations of NOI at share to same store NOI at share for our
(Amounts in thousands) | Total | theMART | Other | ||||||||||||||||
NOI at share for the nine months ended | $ | 870,293 | $ | 732,913 | $ | 75,630 | $ | 49,051 | $ | 12,699 | |||||||||
Less NOI at share from: | |||||||||||||||||||
Change in ownership interest in | (13,370 | ) | (13,370 | ) | — | — | — | ||||||||||||
Dispositions | (3,523 | ) | (3,523 | ) | — | — | — | ||||||||||||
Development properties | (65,440 | ) | (65,440 | ) | — | — | — | ||||||||||||
Other non-same store income, net | (17,910 | ) | (5,211 | ) | — | — | (12,699 | ) | |||||||||||
Same store NOI at share for the nine months ended | $ | 770,050 | $ | 645,369 | $ | 75,630 | $ | 49,051 | $ | — | |||||||||
NOI at share for the nine months ended | $ | 754,946 | $ | 651,015 | $ | 42,950 | $ | 48,230 | $ | 12,751 | |||||||||
Less NOI at share from: | |||||||||||||||||||
Dispositions | (6,667 | ) | (6,667 | ) | — | — | — | ||||||||||||
Development properties | (23,207 | ) | (22,359 | ) | — | (848 | ) | — | |||||||||||
12,677 | 12,677 | — | — | — | |||||||||||||||
Other non-same store income, net | (20,991 | ) | (8,240 | ) | — | — | (12,751 | ) | |||||||||||
Same store NOI at share for the nine months ended | $ | 716,758 | $ | 626,426 | $ | 42,950 | $ | 47,382 | $ | — | |||||||||
Increase in same store NOI at share | $ | 53,292 | $ | 18,943 | $ | 32,680 | $ | 1,669 | $ | — | |||||||||
% increase in same store NOI at share | 7.4 | % | 3.0 | % | 76.1 | % | 3.5 | % | 0.0 | % |
NON-GAAP RECONCILIATIONS - CONTINUED
Below are reconciliations of NOI at share - cash basis to same store NOI at share - cash basis for our
(Amounts in thousands) | Total | theMART | Other | ||||||||||||||||
NOI at share - cash basis for the nine months ended | $ | 861,469 | $ | 719,287 | $ | 78,749 | $ | 50,141 | $ | 13,292 | |||||||||
Less NOI at share - cash basis from: | |||||||||||||||||||
Change in ownership interest in | (10,111 | ) | (10,111 | ) | — | — | — | ||||||||||||
Dispositions | (3,732 | ) | (3,732 | ) | — | — | — | ||||||||||||
Development properties | (44,381 | ) | (44,381 | ) | — | — | — | ||||||||||||
Other non-same store income, net | (19,478 | ) | (6,186 | ) | — | — | (13,292 | ) | |||||||||||
Same store NOI at share - cash basis for the nine months ended | $ | 783,767 | $ | 654,877 | $ | 78,749 | $ | 50,141 | $ | — | |||||||||
NOI at share - cash basis for the nine months ended | $ | 756,516 | $ | 651,366 | $ | 45,976 | $ | 45,552 | $ | 13,622 | |||||||||
Less NOI at share - cash basis from: | |||||||||||||||||||
Dispositions | (6,796 | ) | (6,796 | ) | — | — | — | ||||||||||||
Development properties | (24,430 | ) | (23,582 | ) | — | (848 | ) | — | |||||||||||
12,723 | 12,723 | — | — | — | |||||||||||||||
Other non-same store income, net | (21,310 | ) | (7,688 | ) | — | — | (13,622 | ) | |||||||||||
Same store NOI at share - cash basis for the nine months ended | $ | 716,703 | $ | 626,023 | $ | 45,976 | $ | 44,704 | $ | — | |||||||||
Increase in same store NOI at share - cash basis | $ | 67,064 | $ | 28,854 | $ | 32,773 | $ | 5,437 | $ | — | |||||||||
% increase in same store NOI at share - cash basis | 9.4 | % | 4.6 | % | 71.3 | % | 12.2 | % | 0.0 | % |
NON-GAAP RECONCILIATIONS - CONTINUED
Below are reconciliations of NOI at share to same store NOI at share for our
(Amounts in thousands) | Total | theMART | Other | ||||||||||||||||
NOI at share for the three months ended | $ | 297,089 | $ | 241,154 | $ | 35,769 | $ | 16,092 | $ | 4,074 | |||||||||
Less NOI at share from: | |||||||||||||||||||
Dispositions | (88 | ) | (88 | ) | — | — | — | ||||||||||||
Development properties | (22,914 | ) | (22,914 | ) | — | — | — | ||||||||||||
Other non-same store income, net | (5,250 | ) | (1,176 | ) | — | — | (4,074 | ) | |||||||||||
Same store NOI at share for the three months ended | $ | 268,837 | $ | 216,976 | $ | 35,769 | $ | 16,092 | $ | — | |||||||||
NOI at share for the three months ended | $ | 288,946 | $ | 248,092 | $ | 19,947 | $ | 16,724 | $ | 4,183 | |||||||||
Less NOI at share from: | |||||||||||||||||||
Dispositions | (1,628 | ) | (1,628 | ) | — | — | — | ||||||||||||
Development properties | (21,667 | ) | (21,667 | ) | — | — | — | ||||||||||||
Other non-same store income, net | (4,231 | ) | (48 | ) | — | — | (4,183 | ) | |||||||||||
Same store NOI at share for the three months ended | $ | 261,420 | $ | 224,749 | $ | 19,947 | $ | 16,724 | $ | — | |||||||||
Increase (decrease) in same store NOI at share | $ | 7,417 | $ | (7,773 | ) | $ | 15,822 | $ | (632 | ) | $ | — | |||||||
% increase (decrease) in same store NOI at share | 2.8 | % | (3.5 | )% | 79.3 | % | (3.8 | )% | 0.0 | % |
NON-GAAP RECONCILIATIONS - CONTINUED
Below are reconciliations of NOI at share - cash basis to same store NOI at share - cash basis for our
(Amounts in thousands) | Total | theMART | Other | ||||||||||||||||
NOI at share - cash basis for the three months ended | $ | 295,670 | $ | 237,692 | $ | 36,772 | $ | 16,926 | $ | 4,280 | |||||||||
Less NOI at share - cash basis from: | |||||||||||||||||||
Dispositions | (88 | ) | (88 | ) | — | — | — | ||||||||||||
Development properties | (15,796 | ) | (15,796 | ) | — | — | — | ||||||||||||
Other non-same store income, net | (5,665 | ) | (1,385 | ) | — | — | (4,280 | ) | |||||||||||
Same store NOI at share - cash basis for the three months ended | $ | 274,121 | $ | 220,423 | $ | 36,772 | $ | 16,926 | $ | — | |||||||||
NOI at share - cash basis for the three months ended | $ | 284,671 | $ | 241,903 | $ | 21,541 | $ | 16,855 | $ | 4,372 | |||||||||
Less NOI at share - cash basis from: | |||||||||||||||||||
Dispositions | (1,715 | ) | (1,715 | ) | — | — | — | ||||||||||||
Development properties | (14,657 | ) | (14,657 | ) | — | — | — | ||||||||||||
Other non-same store income, net | (4,715 | ) | (343 | ) | — | — | (4,372 | ) | |||||||||||
Same store NOI at share - cash basis for the three months ended | $ | 263,584 | $ | 225,188 | $ | 21,541 | $ | 16,855 | $ | — | |||||||||
Increase (decrease) in same store NOI at share - cash basis | $ | 10,537 | $ | (4,765 | ) | $ | 15,231 | $ | 71 | $ | — | ||||||||
% increase (decrease) in same store NOI at share - cash basis | 4.0 | % | (2.1 | )% | 70.7 | % | 0.4 | % | 0.0 | % |
Source:
2022 GlobeNewswire, Inc., source