Vornado Realty Trust · NYSE:VNO
Vornado Realty Trust — Wachovia conference (December 2008)
32 slides from Vornado Realty Trust's conference presentation, December 2008
Slide 1: Vornado Realty Trust
VORNADO REALTY TRU S'T te ste ‘1 a i . A HH vil ow ‘ Bee sal rol oy (an | ;
Slide 2: Forward-Looking Statements
Forward-Looking Statements The investor presentation and the related discussion may those set forth in our Annual Report on Form 10-K for the contain forward-looking statements as such term is defined year ended December 31, 2007 under “Forward-Looking in Section 27A of the Securities Act of 1933, a
Slide 3: Vornado – Who Are We?
Vornado – Who Are We? The third largest enterprise value and equity market cap. U.S. REIT with a market value of $9.9 billion and an enterprise value of $26.2 billion as of 12/05/08 Equity Market Capitalization ($ in billions) Enterprise Value ($ in billions) Simon Property Group 12.4 Simon Property
Slide 4: Vornado – Who Are We?
Vornado – Who Are We? Focused on select office and retail properties in New York and Washington, DC; markets that have high-barriers to entry Build real estate operating platforms of size and scale in high- barrier central business districts of the coastal capitals of the United States—New York and
Slide 5: New York Office
New York Office 16.1 MILLION SF 5
Slide 6: Washington, DC Office
Washington, DC Office 17.6 MILLION SF 6
Slide 7: Retail Properties
Retail Properties 21.8 MILLION SF 7
Slide 8: Merchandise Mart
Merchandise Mart 8.9 MILLION SF 8
Slide 9: Toys “R” Us
Toys “R” Us 32.7% Ownership Position 9
Slide 10: Vornado has a long-term track record of earnings and dividend growth
Vornado has a long-term track record of earnings and dividend growth
Slide 11: Comparable EBITDA
Comparable EBITDA(1) ($ IN MILLIONS) 1,835 % C AGR 1,493 20.7 1,046 898 781 766 640 561 477 337 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 (1) EBITDA excluding discontinued operations, gains on sale of real estate and other items that affect comparability 11
Slide 12: Comparable Funds From Operations (FFO) and Per Share
Comparable Funds From Operations (FFO) and Per Share (1) ($ IN MILLIONS, EXCEPT PER SHARE) 875 R CAG O/PS F F 706 10.8% 651 5.33 O 605 19.6 % FF 488 443 361 4.55 4.53 4.48 306 259 4.19 175 3.94 3.62 3.17 2.78 2.12 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 (1) Comparable FFO is before items s
Slide 13: Dividends
Dividends Steady gains in core annual dividend growth of over 5.5% with periodic special dividends SPECIAL DIVIDEND REGULAR DIVIDEND $3.90 $3.79 $3.65 $3.05 $3.45 $2.91 $0.82 $0.54 $0.16 $3.65 $0.16 $3.25 $3.45 $3.08 $2.75 $2.89 3.4% 5.1% 6.6% 5.5% 6.2% 5.8% 2003 2004 2005 2006 2007 2008 13
Slide 14: Conservative Balance Sheet positioned for opportunities from industry distress
Conservative Balance Sheet positioned for opportunities from industry distress
Slide 15: Conservatively Leveraged
Conservatively Leveraged Enterprise Value 35.1 ($ IN BILLIONS) 32.3 3.3 3.3 JV DEBT 26.2 9.6 CONSOLIDATED DEBT(1) 24.1 3.0 PREFERRED EQUITY 18.2 3.0 1.1 12.9 COMMON EQUITY 14.4 0.7 6.3 12.2 9.9 11.4 0.9 4.9 1.1 1.1 9.2 1.0 6.2 7.6 1.3 1.3 4.2 1.5 21.1 1.1 1.2 4.1 1.4 0.6 2.5 13.7 15.0 2.0 2.7 1.1 2.
Slide 16: Debt Maturities Manageable and Well-Staggered Over Time
Debt Maturities Manageable and Well-Staggered Over Time ($ IN MILLIONS) 5,349 FLOATING FIXED 2,668 2,717 1,077 380 2009 2010 2011 2012 Thereafter Percent Total Debt 3.1% 8.8% 21.9% 22.3% 43.9% Fixed Rate Amount 256 825 2,570 2,485 4,514 Rate 4.8% 7.0% 4.9% 3.8% 5.8% Floating Rate Amount 124 252 98 2
Slide 17: Vornado manages risk by diversification of tenants and property types
Vornado manages risk by diversification of tenants and property types in its key high-barrier to entry markets
Slide 18: EBITDA by Business Division
EBITDA by Business Division(1) NINE MONTHS ENDED 9/30/08 41% 8% Mart – 8% New York 41% Office – 68% Retail – 24% Washington, DC 24% 27% 27% (1) Excluding Toys “R” Us. 18
Slide 19: EBITDA by Region
EBITDA by Region(1) NINE MONTHS ENDED 9/30/08 Washington, DC New York 27% 59% 6% California 4% 4% Chicago (1) Excluding Toys “R” Us. Other 19
Slide 20: Diversification by Tenant
Diversification by Tenant Square Footage Percentage of 2008 (in thousands) Annualized Revenues U.S. Government 5,827 6.9% Bank of America 1,094 2.1% AXA Equitable Life Insurance 815 1.5% Macy*s 1,620 1.5% Limited Brands 418 0.9% Madison Square Garden / Rainbow Media 408 0.9% McGraw-Hill Companies, I
Slide 21: Our earnings metrics continue to show growth in 2008
Our earnings metrics continue to show growth in 2008 despite the difficult economic and financial environments
Slide 22: Nine Months Ended 9/30/08 vs 9/30/07
Nine Months Ended 9/30/08 vs 9/30/07 ($ IN MILLIONS, EXCEPT PER SHARE DATA) 1,500 1,406 917 773 5.60 671 695 4.71 4.08 4.24 2007 2008 2007 2008 2007 2008 Comparable EBITDA Comparable FFO Total FFO 22
Slide 23: Operating Statistics
Operating Statistics % Change in Same-Store EBITDA Occupancy as of 9 M/E 9/30/08 Vs. 9 M/E 9/30/07 9/30/08 New York Office 6.1% 97.1% Washington, DC Office 4.6% 95.7% Retail 3.8% 94.1% Merchandise Mart 1.3% 93.4% 23
Slide 24: Mark-to-Market on Relet Space
Mark-to-Market on Relet Space 9 M/E 9/30/2008 GAAP Basis Cash Basis New York Office 56.4% 51.5% Washington, DC Office 19.5% 18.1% Retail 23.5% 15.7% Merchandise Mart Office 5.6% (8.9%) Showroom 11.3% (1.5%) 24
Slide 25: Development Projects
Development Projects Estimated Investment Completion ($ in millions) Bergen Town Center 1.2 million sf lifestyle shopping center 2009 227 West End 25 Conversion to rental residential in Georgetown 2009 183 1999 K Street 250,000 sf Helmut Jahn-designed DC office building fully leased 2009 165 220 20t
Slide 26: Development Projects
Development Projects Estimated Investment Completion ($ in millions) Broome & Broadway Redevelopment of retail and residential space 2009 31 800 17th Street (49% interest) 350,000 sf office building in downtown DC 2010 120 South Hills Mall Conversion into 575,000 sf shopping center 2010 36 Garfield
Slide 27: Appendix
Appendix This investor package and the related discussion contain certain non-GAAP financial measures, including Earnings Before Interest, Taxes, Depreciation, and Amortization (“EBITDA”) and Funds from Operations (“FFO”) and related per share amounts. EBITDA is presented before minority interest, g
Slide 28: Reconciliations of Net Income to EBITDA and Comparable EBITDA
Reconciliations of Net Income to EBITDA and Comparable EBITDA 9 Months Ended Sept. 30 Years Ended December 31 ($ IN MILLIONS) 2008 2007 2007 2006 2005 2004 2003 2002 2001 2000 1999 1998 Net Income 597.6 463.7 568.9 560.1 539.6 592.9 460.7 232.9 263.7 234.0 202.5 152.9 Interest and Debt Expense 593.0
Slide 29: Reconciliations of Net Income to FFO and Comparable FFO
Reconciliations of Net Income to Funds from Operations (FFO) and Comparable FFO 9 Months Ended Sept. 30 Years Ended December 31 ($ IN MILLIONS) 2008 2007 2007 2006 2005 2004 2003 2002 2001 2000 1999 1998 Net Income 597.6 463.7 568.9 560.1 539.6 592.9 460.7 232.9 263.7 234.0 202.5 152.9 Preferred sha
Slide 30: Reconciliations of Net Income to FFO and Comparable FFO
Reconciliations of Net Income to Funds from Operations (FFO) and Comparable FFO 9 Months Ended Sept. 30 Years Ended December 31 ($ IN MILLIONS) 2008 2007 2007 2006 2005 2004 2003 2002 2001 2000 1999 1998 Adjustments for certain items that affect comparability: Write-off of non-core investments, perp
Slide 31: Funds From Operations (“FFO”)
Funds From Operations (“FFO”) FFO is computed in accordance with the definition adopted Management believes that FFO and FFO per diluted share by the Board of Governors of the National Association of are helpful to investors as supplemental performance Real Estate Investment Trusts (“NAREIT”). NAREI
Slide 32: Vornado
VORNADO oc - ee \ =. \2\ 0 A — ps La Ss, ig
Vornado Realty Trust — Wachovia conference (December 2008) on 6ix