Vornado Realty Trust · NYSE:VNO
Vornado Realty Trust — Investor Presentation (March 2020)
35 slides from Vornado Realty Trust's investor presentation, Mar 2, 2020
Slide 1: Vornado Realty Trust March 2020
VORNADO REALTY TRUST MARCH 2020
Slide 2: Forward Looking Statements
FORWARD LOOKING STATEMENTS VORNADO Certain statements contained in this investor presentation constitute forward-looking statements as such term is defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking st
Slide 3: Overview
OVERVIEW BEST-IN-CLASS ASSETS UNIQUE & SCALABLE PENN DISTRICT OPPORTUNITY A ee TRACK RECORD OF VALUE CREATION LEADING OPERATING PLATFORM FORTRESS BALANCE SHEET VORNADO
Slide 4: Deep, Talented & Experienced Management Team
| DEEP, TALENTED & EXPERIENCED MANAGEMENT TEAM ROAR ah
Slide 5: Rationale for Owning Vornado Stock
RATIONALE FOR OWNING VORNADO STOCK VORNADO * Attractive common dividend yield of 4.9%! + Trading at a significant discount to NAV + Deep, talented, proven management team * Fortress balance sheet with substantial cash and available liquidity (~$3.8 billion today and growing) to fund Penn District an
Slide 6: Fortress Balance Sheet
FORTRESS BALANCE SHEET VORNADO Amounts in millions) Secured debt Unsecured debt Pro rata share of non-consolidated debt Less: noncontrolling interests’ share of consolidated debt Total debt * Investment grade debt — Baa2/BBB Projected cash proceeds from 220 Central Park South + $2.2 BN in revolver c
Slide 7: Components of Pro-Forma NOI at Share - Cash Basis
COMPONENTS OF PRO-FORMA NOI AT SHARE - CASH BASIS’ VORNADO Components of NO! at share - Cash Basis PENN DISTRICT 23% Upon completion of the developments in process, the Penn District is expected to represent approximately 33% of NOI NYC RETAIL _ theMART / 555 CALIFORNIA iA% NYC OFFICE 1. NOI is a. n
Slide 8: Plaza District / Penn District / Midtown
PLAZA DISTRICT PENN DISTRICT beeen MIDTOWN
Slide 9: West 34th Street, Seventh Avenue, Union Square, Broadway properties
Ty 4 TTT TP WTF 180 WEST 34TH STREET 435 SEVENTH AVENUE UNION SQUARE 404-496 BROADWAY 1540 & 1535 BROADWAY
Slide 10: theMART Chicago
1. The 2019 Cash NOI includes the add back of free rent. See page 33 for non-GAAP reconciliation. theMART building (Chicago) - best example of contemporary office space outside of Silicon Valley. Transformed from a showroom building to the premier creative and tech hub in the Midwest, resulting in s
Slide 11: 555 California Street
555 CALIFORNIA STREET ViORNABS 555 California Street - the franchise office building in San Francisco and arguably the most iconic building on the west coast. + 1,819,000 SF complex - 99.8% occupancy at 12/31/19 + 2019 Cash NOI (non-GAAP) of $61.3 million’ at share * In-place escalated rents average
Slide 12: Nationally Recognized, Industry-Leading Sustainability Program
| NATIONALLY RECOGNIZED, INDUSTRY-LEADING SUSTAINABILITY PROGRAM VGERNADS SUSTAINA Y ® 7-time Energy Star Partner of the Year; Sustained Excellence recipient 2020. AEYGREEN CLEAN™ PARTNER OF THE YEAR Sustained Excellence ) Largest owner of LEED certified buildings in New York City with over 26 milli
Slide 13: Farley: Where Talent Is Our Client
FARLEY WHERE TALENT 1S OUR CLIENT 12|
Slide 14: The Penn District Is the Easiest Neighborhood to Get To
THE PENN DISTRICT IS THE EASIEST NEIGHBORHOOD TO GET TO AND SITS IN THE EPICENTER OF 13
Slide 15: The Penn District: Epicenter of the New New York
THE PENN DISTRICT VOTSARS THE EPICENTER OF THE NEW NEW YORK Weaury aust UNIQUE VALUE CREATION OPPORTUNITY * Existing office leasable space of 6.8MM SF with average in-place rents of $66 PSF” * Hudson Yards to the west asking rents range from $110-225 PSF® * Transformation of the neighborhood, includ
Slide 16: In Every Great Global City, the Most Valuable Real Estate Stands Atop the Transportation Hub
"IN EVERY GREAT GLOBAL CITY, THE MOST VALUABLE REAL ESTATE STANDS ATOP THE MAJOR TRANSPORTATION HUB." JLL RESEARCH, 4/23/19 ONCE REDEVELOPED, THE VORNADO PENN DISTRICT HOLDINGS WILL JOIN THE LIST.
Slide 17: Farley / Penn / Penn
FARLEY PENN 1 PENN 2 Ss SSNs! SO =.
Slide 18: Development Timeline
DEVELOPMENT TIMELINE VORNADO COMPLETION DATE: 2020 2021 2022 FUTURE FARLEY 260 ELEVENTH OTHER PENN DISTRICT DEVELOPMENT OPPORTUNITIES 7
Slide 19: Active Development/Redevelopment Summary
THE PENN DISTRICT VORNADO ACTIVE DEVELOPMENT/REDEVELOPMENT SUMMARY - AS OF DECEMBER 31, 2019 (Amounts in thousands of dollars, except square feet) Capital to fund these unencumbered projects comes principally from 220 CPS proce: STABILIZATION PROJEC ACTIVE PENN DISTRICT PROJECTS E NNC 2 SQ. F E 8 Y
Slide 20: Significant Dry Powder Available for Vornado
SIGNIFICANT DRY POWDER AVAILABLE FOR VORNADO CURRENT PIPELINE & FUTURE INVESTMENTS we ta ‘(Amounts in thousands) PENN 15 1,200,000 DISTRICTWIDE PENN 2 COST IMPROVEMENTS TO COMPLETE INVESTMENT 9 OPPORTUNITIES 709,000 PENN 1 cost To COMPLETE FARLEY COST 256,000 To COMPLETE! 1,347,000 432,000 AVAILABLE
Slide 21: Unique Horizontal Campus Directly on Top of Transportation
are VORNADO UNIQUE HORIZONTAL CAMPUS DIRECTLY ON TOP OF TRANSPORTATION = ERE
Slide 22: Farley Office Interiors & Rooftop Park
FARLEY VORNADO OFFICE INTERIORS & ROOFTOP PARK : TV eer Rl
Slide 23: Penn 1: 34th Street Entrance
PENN 1 VORNADO 34TH STREET ENTRANCE HUA
Slide 24: Penn 1 Lobby, Amenity Space & Plaza33
Slide 25: Penn 2 Transformative Redevelopment
Slide 26: Penn 1 Redevelopment Features
PENN 2 REDEVELOPMENT FEATURES New rooftop terrace New penthouse duplex Two exterior loggias New modern curtain wall located on all floors Two Bustle floors, 44,000 RSF each, featuring double height ceilings and column free space New 4,000 SF town hall space New triple height lobby located off of 33r
Slide 27: Penn 2 7th Avenue & 33rd Street Lobby
Slide 28: GAAP FFO, as Adjusted Bridge 2018-2020
GAAP "FFO, AS ADJUSTED" BRIDGE — 2018-2020 (Amounts in milions of dollars, except per share amounts) ‘Amount Per Share 2018 “FFO, as adjusted” 735 3.73 Asset sales: LxP UE Retail JV 330 Madison Avenue 3040 M Street PREIT Total asset sales PENN 1 and PENN 2 out of service Retail bankruptcies (Forever
Slide 29: Appendix
VORNADO REALTY TRUST APPENDIX
Slide 30: Non-GAAP Financial Measures
NON-GAAP FINANCIAL MEASURES VORNADO This investor presentation contains certain non-GAAP financial measures, including net operating income ("NOI"), earnings before interest, taxes, depreciation and amortization for real estate (“EBITDAre”) and funds from operations (*FFO"), as adjusted. NOI at shar
Slide 31: Non-GAAP Reconciliations
NON-GAAP RECONCILIATIONS Amounts in milions) Reconciliation of Net income attributable to the Operating Partnership to EBITDAre and EBITDAre, as adjusted for the year ended December 31, 2019 For the Year Ended December 31, 2019 Net income attributable to the Operating Partnership $ 3,359 Interest an
Slide 32: Non-GAAP Reconciliations
NON-GAAP RECONCILIATIONS VORNADO Reconciliation of Net income attributable to common shareholders to FFO and FFO, as adjusted for the year ended December 31, 2018 (Amounts in millions, except per share amounts) For the Year Ended December 31, 2018 Net income attributable to common shareholders $ 385
Slide 33: Non-GAAP Reconciliations
NON-GAAP RECONCILIATIONS Amounts in millions) Reconciliation of Net income to Pro-Forma NOI at share - Cash Basis for the year ended December 31, 2019 Net income Depreciation and amortization expense General and administrative expense Transaction related costs, impairment losses and other Income fro
Slide 34: Non-GAAP Reconciliations
NON-GAAP RECONCILIATIONS Amounts in millions) Reconciliation of theMART Net income to EBITDA, NOI - Cash Basis and NOI - Cash Basis \djusted for the year ended December 31, 2011 and for the year ended December 31, 2019 For the Year Ended For the Year Ended December 31, 2019 December 31, 2011 Net inc
Slide 35: Vornado Realty Trust March 2020
VORNADO REALTY TRUST MARCH 2020
Vornado Realty Trust — Investor Presentation (March 2020) on 6ix