Vornado Realty Trust · NYSE:VNO
Vornado Realty Trust — Investor Presentation (June 2019)
27 slides from Vornado Realty Trust's investor presentation, Jun 3, 2019
Slide 1: Vornado Realty Trust June 2019
VORNADO REALTY TRUST JUNE 2019
Slide 2: Vornado: Best-in-class assets, Penn District opportunity, fortress balance sheet
VORNADO BEST-IN-CLASS ASSETS UNIQUE & SCALABLE PENN DISTRICT OPPORTUNITY NEW YORK CITY FOCUSED TRACK RECORD OF VALUE CREATION LEADING OPERATING PLATFORM FORTRESS BALANCE SHEET VORNADO
Slide 3: Vornado's Management Team
Slide 4: New York City is our home and continues to be a magnet
NEW YORK CITY IS OUR HOME & CONTINUES TO BE A MAGNET VORNADO FOR TALENT AND COMPANIES ECONOMIC GROWTH LABOR POOL * New York City has captured the greatest share + New York City has a growing population of of U.S. (8.3%) and Global GDP (2.6%) of all cities o00 educated individuals (net in-migration o
Slide 5: Relentless pursuit of shareholder value
| RELENTLESS PURSUIT OF SHAREHOLDER VALUE A TRACK RECORD OF EXECUTING SMART, STRATEGIC TRANSACTIONS VORNADO 2012+ [SS NON-CORE ASSET SALES + Disposed of $6.2 billion ‘of non-core assets to date including regional malls, the Mart business (retaining theMART building in Chicago) and other non-core inv
Slide 6: What's next?
WHAT'S NEXT? VORNARO COMPLETION DATE: 2020 2021 2022 FUTURE FARLEY 260 ELEVENTH OTHER PENN DISTRICT DEVELOPMENT OPPORTUNITIES
Slide 7: Farley
FARLEY
Slide 8: Significant dry powder available for Vornado
SIGNIFICANT DRY POWDER AVAILABLE FOR VORNADO CURRENT PIPELINE & FUTURE INVESTMENTS _— ‘Amounts in thousands, as of 3/31/19 adjusted for Retail Transaction) 2,096,000 260 ELEVENTH 2,360,000 ihe 88 FARLEY COST Ree INVESTMENT TO COMPLETE? 200,000 OPPORTUNITIES abide _—— 220 cFs cost Boone 513,000 —_ L
Slide 9: Rationale for owning Vornado stock
RATIONALE FOR OWNING VORNADO STOCK VORNADO Attractive common dividend yield of 4.0%! 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 and take a
Slide 10: Fortress balance sheet
FORTRESS BALANCE SHEET VORNADO (Amounts in milions) Secured debt $ 6,556 Unsecured debt 1,280 Pro rata share of non-consolidated debt 2,920 Less: noncontrolling interests’ share of consolidated debt (480) Total debt 10,276 220 CPS (mortgage + term loan) 2,063) Projected cash proceeds from 220 Centra
Slide 11: Growth from redevelopment
VORNADO REALTY TRUST GROWTH FROM REDEVELOPMENT
Slide 12: Components of NOI
VORNADO COMPONENTS OF NO! Components of NO! at share - Cash Basis’ PENN DISTRICT 22% | Post redevelopment, the NYC RETAIL — Penn District is expected to represent a greater percentage of NOI theMART / 555 CALIFORNIA NYC OFFICE : 1 For the trailing twelve months ended 3/31/19, as adjusted for April 1
Slide 13: The Penn District
THE PENN DISTRICT THE EPICENTER OF THE NEW NEW YORK UNIQUE VALUE CREATION OPPORTUNITY + Existing office leasable space of 6.8MM SF with average in-place rents of $64 PSF + Hudson Yards to the west asking rents range from $99-225 PSF” + Transformation of the neighborhood will enormously enhance the v
Slide 14: Farley Building
FARLEY BUILDING UNIQUE HORIZONTAL CAMPUS DIRECTLY ON TOP OF TRANSPORTATION Vornado owns a 95% interest in the Farley Building Vornado is developing the Farley Building, which will include 730,000 square feet of office and 120,000 square feet of retail space 1.6 acres of rooftop park space Total budg
Slide 15: PENN1
VORNEEO kb Zz G ae re) a > ° cS E Zz a = rs w ce & x= = PENN1 |
Slide 16: PENN2
PENN2 VORNADO DESIGNING A CAMPUS FOR TOMORROW'S WORKFORCE —
Slide 17: Nationally recognized, industry-leading sustainability program
: NATIONALLY RECOGNIZED, INDUSTRY-LEADING SUSTAINABILITY PROGRAM VORNADES JSTAINABILIT aa mm CLEAN™ PARTNER OF THE YEAR a 6-time Energy Star Partner of the Year; Sustained Excellence Sustained Excellence recipient 2019 a Largest owner of LEED certified buildings in New York City with over 26 million
Slide 18: Appendix
VORNADO REALTY TRUST APPENDIX
Slide 19: Select New York City Street Retail Properties
PLAZA DISTRICT PENN DISTRICT PENN! / PERN? GRAND CENTRAL MIDTOWN
Slide 20: Plaza District
Slide 21: theMART
theMART VORNADO willl ite 1. See page 25 for non-GAAP reconciliation. ‘additional real estate tax expense accrual due to an increase in the tax-assessed value of theMART. theMART building (Chicago) ~ best example of contemporary office space outside of Silicon Valley. Transformed from a showroom bui
Slide 22: 555 California Street
555 CALIFORNIA STREET VORNADO 555 California Street - the franchise office building in San Francisco and arguably the most iconic building on the west coast - further NOI growth expected from redeveloped concourse and 315/345 Montgomery + 1,821,000 SF complex - 99.4% occupancy at 3/31/19 + 3/31/19 T
Slide 23: Non-GAAP Financial Measures
NON-GAAP FINANCIAL MEASURES This investor presentation contains certain non-GAAP financial measures, including net operating income ("NOI") and earnings before interest, taxes, depreciation and amortization ("EBITDA"). NOI represents total revenues less operating expenses. We consider NOI to be the
Slide 24: Non-GAAP Reconciliations
NON-GAAP RECONCILIATIONS VORNADO Amounts in milion) Reconciliation of Vornado Realty Trust Net income to NOI at share - Cash Basis NOI at share - Cash Basis by segment: for the trailing twelve months ended March 31, 2019 ae pene rim Ended tee, March 31,2019 Net income $635 Deduct: ludes $27MM of BMS
Slide 25: Non-GAAP Reconciliations
NON-GAAP RECONCILIATIONS VORNADO (Amounts in millions) Reconciliation of Net income attributable to the Operating Partnership to EBITDA and EBITDA, as adjusted for the trailing twelve months ended March 31, 2019 For the TTM March 31, 2019 Net income attributable to the Operating Partnership $ 673 In
Slide 26: Non-GAAP Reconciliations
NON-GAAP RECONCILIATIONS VORNADO ‘Amounts in millions) Reconciliation of theMART Net income to EBITDA, NOI - Cash Basis and NOI - Cash Basis as adjusted for the year ended December 31, 2011 and for the trailing twelve months ended March 31, 2019 For the TIM Ended For the ear Ended waren 32018 ucembe
Slide 27: Vornado Realty Trust June 2019
VORNADO REALTY TRUST JUNE 2019
Vornado Realty Trust — Investor Presentation (June 2019) on 6ix