Vornado Realty Trust · NYSE:VNO
Vornado Realty Trust — Nareit REITweek 2016
28 slides from Vornado Realty Trust's conference presentation, Jun 8, 2016
Slide 1: Vornado Realty Trust
VORNADO REALTY TRUST
Slide 2: Forward Looking Statements
F O R WA R D L O O K I N G S TAT E M E N T S Certain statements in this investor presentation are “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 statem
Slide 3: Vornado Realty Trust
V O R N A D O R E A LT Y T R U S T • Premier assets and a focused strategy of growing its dominant positions in New York City and Washington, DC office and Manhattan Street Retail • One of the largest US REITs with total enterprise value of approximately $35 billion • EBITDA composition: 70% New Yor
Slide 4: Deep and Experienced Management Team
DEEP AND EXPERIENCED MANAGEMENT TEAM 4
Slide 5: A Leader in Sustainability
A L E A D E R I N S U S TA I N A B I L I T Y Nationally recognized, industry-leading sustainability program: • Energy Star Partner of the Year, Sustained Excellence Recipient 2015 • Over 30 million square feet LEED certified buildings nationwide including 13 million SF in the New York office divisio
Slide 6: Corporate Governance: Engagement and Our Response to Shareholders
C O R P O R AT E G O V E R N A N C E : ENGAGEMENT AND OUR RESPONSE TO SHAREHOLDERS We met with shareholders representing more than 50% of our outstanding shares during the last year. The Chair of our Corporate Governance and Nominating Committee was an active participant in these meetings and shareh
Slide 7: EBITDA by Business - Simplification
E B I T D A B Y B U S I N E S S - S I M P L I F I C AT I O N WHERE WE WERE WHERE WE ARE December 31, 2011 March 31, 2016 New York Office 29% 9% 1% 21% Manhattan Street Retail Washington, DC 45% 20% 5% Strips and Malls theMART & 555 California 14% 10% Other 21% 25% 7
Slide 8: Incremental Cash Revenue from Signed Leases (at Share)
I N C R E M E N TA L C A S H R E V E N U E ( A S U R R O G AT E F O R N O I ) F R O M S I G N E D L E A S E S ( AT S H A R E ) Incremental cash rental revenue is estimated based on leases signed as of March 31, 2016, that have not commenced, or that have not fully commenced, for cash rental recognit
Slide 9: Components of Net Asset Value (at Share)
C O M P O N E N T S O F N E T A S S E T VA L U E ( AT S H A R E ) 9
Slide 10: Components of Net Asset Value (at Share)
C O M P O N E N T S O F N E T A S S E T VA L U E ( AT S H A R E ) NOTES TO COMPONENTS OF NET ASSET VALUE: 1. Annualized straight-line rent adjustments and acquired below market leases non-cash income (FAS 141) , inclusive of our share of unconsolidated joint ventures; and $21 for annualized other no
Slide 11: New York Division
NEW YORK DIVISION • 81 properties totaling 24.2 million SF (at share) Office: 18.9 million SF Retail: 3.1 million SF Residential: 995 units Hotel: 1.2 million SF Office Retail Residential Hotel 11
Slide 12: New York Office Leasing 2010-Q1 2016
NEW YORK OFFICE LEASING 2010-Q1 2016 Starting Rent PSF $90.00 100.0% Occupancy $84.32 98.0% $85.00 96.0% $78.55 $80.00 94.0% 92.0% $75.00 90.0% $70.00 $66.78 88.0% 86.0% $65.00 $60.78 84.0% $60.00 $57.15 82.0% $55.37 80.0% $55.00 78.0% $49.81 $50.00 76.0% 74.0% $45.00 72.0% $40.00 70.0% 2010 2011 20
Slide 13: New York Office Leasing - $100+ SF Deals 2014-Q1 2016
NEW YORK OFFICE LEASING – $100+ SF DEALS 2014-Q1 2016 2014 2015 Q1 2016 280 Park Ave Trian Fund Management L.P 8,664 280 Park Ave New Advisory LP (PJT) 42,849 731 Lexington Avenue Bloomberg LP 191,789 280 Park Ave Blue Mountain Capital Mgmt 28,857 280 Park Ave Harvest Partners LLC 38,885 770 Broadwa
Slide 14: We Make the Big Deals: Repositioning and Modernizing 10 Million SF
WE MAKE THE BIG DEALS SUCCESSFULLY REPOSITIONING AND MODERNIZING 10 MILLION SF 90 PARK AVENUE – 2016 1290 AVE OF THE AMERICAS – 2014 956,000 SF 2,107,000 SF 640 FIFTH AVENUE – 2005 • PricewaterhouseCoopers LLP • Neuberger Berman 315,000 SF • Foley & Lardner LLP • AXA Equitable • FactSet • Cushman &
Slide 15: Chicago - theMART - Transformation to Tech Hub
C H I C A G O – t h e M A R T – T R A N S F O R M AT I O N T O T E C H H U B C R E AT I N G S I G N I F I C A N T E A R N I N G S G R O W T H A N D VA L U E C R E AT I O N 3,662,000 SF – 97.8% Occupancy 1,189,000 SF leased since 2012: • Motorola/Google • Conagra • 1871/Matter • Yelp • PayPal • Allst
Slide 16: San Francisco - 555 California Street
SAN FRANCISCO – 555 CALIFORNIA STREET 1,800,000 SF – 93.3% Occupancy 1,446,000 SF leased (at 100%) since 2010: • Bank of America • Kirkland & Ellis • Dodge & Cox • Fenwick & West LLP • Sidley Austin • Microsoft • Jones Day • Morgan Stanley • UBS AG • Wells Fargo • Regus • Supercell • AllianceBernste
Slide 17: Chelsea / Meatpacking Ownership
C H E L S E A / M E AT PA C K I N G O W N E R S H I P 260 ELEVENTH AVENUE 85 TENTH AVENUE 17
Slide 18: Manhattan Street Retail
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Slide 19: Ownership of Both Sides of the Bowtie in Times Square
OWNERSHIP OF BOTH SIDES OF THE BOWTIE IN TIMES SQUARE 19
Slide 20: Washington, DC Division
WASHINGTON, DC DIVISION • 63 properties totaling 17.7 million SF (at share) - excludes Skyline Office: 13.9 million SF Excludes Skyline Residential: 2,414 units Excludes The Bartlett, 699 units under development Hotel: 0.3 million SF Other: 0.3 million SF Office Residential Hotel 20
Slide 21: Washington, DC Office Leasing 2010 - Q1 2016
WASHINGTON, DC OFFICE LEASING 2010 – Q1 2016 100.0% $42.24 Starting Rent PSF $41.92 Occupancy - DC, excluding Skyline $41.45 Occupancy - Crystal City 95.0% $40.96 $39.92 90.0% 85.0% $38.89 $38.45 80.0% 75.0% 70.0% 2010 2011 2012 2013 2014 2015 Q1 2016 SF Leased 1,469,026 1,549,711 1,876,544 1,519,61
Slide 22: Washington, DC Development Projects
WASHINGTON, DC DEVELOPMENT PROJECTS IN PROGRESS: WE LIVE / WE WORK THE BARTLETT 1770 CRYSTAL DRIVE CRYSTAL CITY PENTAGON CITY CRYSTAL CITY OPEN MAY 2016 OPEN JUNE 2016 OPEN 2018 216 UNITS WE LIVE 699 UNITS 270,000 SF 27,000 SF WE WORK 37,000 SF WHOLE FOODS AT BASE 187 UNITS PRE-LEASED, 25+ % OF TOTA
Slide 23: Penn Plaza - The Heart of the City
PENN PLAZA – THE HEART OF THE CITY 23
Slide 24: Penn Plaza - An Unprecedented Opportunity
PENN PLAZA – AN UNPRECEDENTED OPPORTUNITY 24
Slide 25: Two Penn Plaza
TWO PENN PLAZA BJARKE INGELS GROUP 25
Slide 26: Appendix - Reconciliation of Net (Loss) Income to EBITDA as Adjusted
A P P E N D I X - R E C O N C I L I AT I O N O F N E T ( L O S S ) I N C O M E T O E B I T D A A S A D J U S T E D F O R C O M PA R A B I L I T Y 26
Slide 27: Appendix - Notes to Reconciliation of Net (Loss) Income to EBITDA
A P P E N D I X - N O T E S T O R E C O N C I L I AT I O N O F N E T ( L O S S ) I N C O M E T O E B I T D A A S A D J U S T E D F O R C O M PA R A B I L I T Y a) The amounts in these captions (for this table only) exclude the results of the mark-to-market of our deferred compensation plan of $1,938
Slide 28: Vornado Realty Trust
VORNADO REALTY TRUST