Vornado Realty Trust · NYSE:VNO
Vornado Realty Trust — Investor Presentation (March 2019)
41 slides from Vornado Realty Trust's investor presentation, Mar 4, 2019
Slide 1: Vornado Realty Trust
Pe Poe ee oe VORNADO REALTY TRUST
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 ofthe Securities Act of 1938, as amended, and ‘Section 21 of the Secures Exchange Act of 1934, as amended, Forward-looking state
Slide 3: The Vornado Story
THE VORNADO STORY VORNADO NEW YORK CITY FOCUSED LEADING OPERATING PREMIER ASSETS EEATEGHE VORNADO PENN DISTRICT FORTRESS BALANCE OPPORTUNITY SHEET TRACK RECORD OF VALUE CREATION
Slide 4: Vornado Overview
VORNADO OVERVIEW VORNADO Peerless NYC focused real estate company with premier office and street retail assets Vornado RemainCo's 5 and 10-year same-store NOI growth is the best among blue chip REITs + Vornado’s portfolio consists of 38MM SF (29.8MM SF at share) + New York focused company, with an i
Slide 5: New York Office & Street Retail Portfolios by Submarket
NEW YORK OFFICE & STREET RETAIL PORTFOLIOS BY SUBMARKET VORNADO Chel Meatpacking Midtown South Penn District Upper Fifth Avenue @ Times Square Madison Avenue Midtown ‘Soho Plaza District, Penn District
Slide 6: NYC Continues to Be a Magnet for Talent
NYC CONTINUES TO BE A MAGNET FOR TALENT VORNADO + New York is a global gateway city with strong projected population growth = Population projected to increase on avi for the next three decades, surpassing, by 2040 (NYC.gov) + Diversified employment base NYC Versus National Job Growth = In 1990, 1in
Slide 7: Catalysts for Shareholder Value Creation
CATALYSTS FOR SHAREHOLDER VALUE CREATION VORNADO + Trading at a significant discount to management's estimate of NAV + Only significant way to invest publicly in fast growing West Side of Manhattan + Growth from creative-class new developments (1,260,000 SF at share) 512 West 22nd Street Farley Offi
Slide 8: Components of Net Asset Value (at Share)
COMPONENTS OF NET ASSET VALUE (AT SHARE) VORNADO free: aah Shit ei ate vue ena 9 ea 106 i i f) 3 § u i i | 5 g ' i i Het! Prneyvana 8 rte Ep Properties CUED (577) snare $662 pe share of December 5,208) Penryn Real Estat nestrent Trust CPREIT) (6250000 shares at $594 per sara of Daceber 32016) 4 (tne
Slide 9: Components of Net Asset Value (at Share)
COMPONENTS OF NET ASSET VALUE (AT SHARE) VORNADO (enue 2nd in ions) Perot prefered at recemtion ve) 02s = os 1 captataton Rate "Cap Rate" means te rate aed tore form cash basis NO! fo determine the fa valve of eu rovetes. The Cap Rates reflected ins nant supplement are based on Imanogement estimates
Slide 10: Implied Value of VNO's NYC Office Portfolio
IMPLIED VALUE OF VNO’S NYC OFFICE PORTFOLIO AT VORNADO SUBSTANTIAL DISCOUNT TO PRIVATE MARKET SALES Beauty raver Sale Price) At Vornado's stock price of $67.31 (2/28/19), our NYC Office implied Price per Square Foot is $522, with a Price PSF 8) oo ox 260 62 2.008 ae ee cap Rate a5 sax a0 40% an sos
Slide 11: Fortress Balance Sheet
FORTRESS BALANCE SHEET VORNADO Amounts in mations) Secured debt Unsecured debt Pro rata share of non-consolidated debt Less: noncontrolling interests’ share of consolidated debt Total debt + Investment grade — Baa2/BBB + $2.4 BN in revolver capacity 220 CPS (mortgage + term loan) + $0.9 BN in cash P
Slide 12: Vornado Leader Among Best-in-Class REITs
VORNADO LEADER AMONG BEST-IN-CLASS REITS VORNADO Vornado has delivered superior same-store NOI - Cash Basis growth relative to blue chip peers on both a 5-year and 10-year basis. 5-Year Same-Store NOI - Cash Basis CAGR 10-Year Same-Store NOI - Cash Basis CAGR (2013-2018) (2008-2018) Livaltinassal 1
Slide 13: Leader in Repositioning and Modernizing Properties
LEADER IN REPOSITIONING AND MODERNIZING PROPERTIES SELECT CASE STUDIES (Amounts in oars excep share) Incremental Stabilized Cash NOI Capital Cost cincluding T/L) Yield Value Created Value Created Per Share 1 nerementl NOI vue at 45% ep te, escape costicung T/C) VORNADO 77,200 20.3% 27,700 1.34
Slide 14: Vornado's Office Assets Located at the Epicenter of Growth
VORNADO'S OFFICE ASSETS LOCATED AT THE EPICENTER OF GROWTH VORNADO
Slide 15: Select New York City Office Properties
SELECT NEW YORK CITY OFFICE PROPERTIES
Slide 16: Blue-Chip Office Tenant Roster
BLUE-CHIP OFFICE TENANT ROSTER FINANCIAL TAMI Bloomberg se IPG amazon Bankot America > guss oeee aac HSBC «> Google ae 1) Mat Bank yelp" TPG : HE Microsoft GLENCORE pwe 'F - -Mobile- WAGs He fA... GUGGENHEIM cmate. — INVESTCORP PayPal MekinsySCompany MIRA YAMAHA FACTSET KKR oe OFidetity Pr 1871 : a
Slide 17: Select New York City Street Retail Properties
SELECT NEW YORK CITY STREET RETAIL PROPERTIES VORNADO
Slide 18: Concentration in the Key High Street Retail Submarkets in Manhattan
CONCENTRATION IN THE KEY HIGH STREET RETAIL SUBMARKETS IN MANHATTAN VORNADO Upper Fifth Avenue quar Own 23% of Frontage (Own Both Sides of the Bowtie SRLUSTL ra eausuricisicl:) | 1540 BROADWAY 1535 BROADWAY 1 Baca churches, ibe and etal ome by sere
Slide 19: Blue-Chip Retail Tenant Roster
BLUE-CHIP RETAIL TENANT ROSTER VORNADO HARRY WINSTON dyson SEPHORA CELINE Christofle vO eS TorsHoP mat «= EE © sunglass hut Sibatoe Faiagaue ——“EYENEp Berluti COACH STARBUCKS RESERVE: STARBUCKS: / 7 = RR VicroRiss amazon J.CREW q Wee FOREVER 21 Moanin Dutt ie INVICTA + SLD itiien e Madiwilh — oncirn
Slide 20: Street Retail Portfolio
STREET RETAIL PORTFOLIO VORNADO UPPER FIFTH & TIMES SQUARE BUTTONED UP FOR TERM ” Over 50% of Vornado street retail NOI - Cash Basis comes from Upper Fifth Avenue and Times Square. Both are locked up for term with high quality tenants UPPER FIFTH AVENUE TIMES SQUARE ‘Tenant Year of Expiration | Tena
Slide 21: theMART
theMART VORNADO 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 significant earnings growth and value creation + 5,675,000 $F building ~ 94.8% Occu
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 building - 99.4% Occupancy at 12/31/2018 + 17
Slide 23: Vornado Realty Trust
VORNADO REALTY TRUST
Slide 24: Well-Positioned with Existing Assets and New Developments
WELL-POSITIONED WITH EXISTING ASSETS AND NEW DEVELOPMENTS. VORNADO CONCENTRATED IN THE FAST GROWING WEST SIDE Renury raver 173,000 SF 1a19 2,545,000 SF 1,800,000 SF 3020 TBD Teo ‘As of 12/8/2018 saurefotage CSF shown 2 100% share
Slide 25: Penn District | An Unprecedented Opportunity
PENN DISTRICT | AN UNPRECEDENTED OPPORTUNITY
Slide 26: Penn District | An Unprecedented Opportunity
PENN DISTRICT | AN UNPRECEDENTED OPPORTUNITY VORNADO Unique Value Creation Opportunity Existing office leasable space of 6.8MM SF with average in-pl rents of $64 PSF® “+ Hudson Yards to the west asking rents range from $90-130 PSF ‘Transformation of the neighborhood will also substantially enhance t
Slide 27: Penn District | Best Positioned from Transit Standpoint
PENN DISTRICT | BEST POSITIONED FROM TRANSIT STANDPOINT VORNADO
Slide 28: Current Development Projects
VORNADO CURRENT DEVELOPMENT PROJECTS” T DEVELOPMENT PIPELINE I SHARE) UPON Full Quarter Stabilized ‘Operations \VNo share 100.08 55.08 so.0% 70.0% Development Budget (at Shared” ‘Amount Expended Ss 9725 $s 52505 $ 25601 $15,284 s $190,275 $19,495 Ss 4399 $s 16716 s $200,000 $72,000 $30,000 $32,000 s
Slide 29: Future Development Pipeline
FUTURE DEVELOPMENT PIPELINE VORNADO ote: Shown at estimated rentable SF suet to change
Slide 30: Farley Office & Retail Building Development
FARLEY OFFICE & RETAIL BUILDING DEVELOPMENT VORNADO BEGINNING THE TRANSFORMATION OF PENN DISTRICT Reatry rmuay + Recently acquired an additional 44.9% from the Related Companies, increasing Vornado's owner Interest to 95%, in the joint venture that has a 9! year lease for the commercial space at the
Slide 31: PENN1 Redevelopment
PENN1 REDEVELOPMENT VORNARO
Slide 32: PENN1 Redevelopment - Preliminary Estimates
PENN1 REDEVELOPMENT - PRELIMINARY ESTIMATES. VORNADO Development Cost $ 200MM” In-Place Office Rent $ 67 PSF ‘Average Market Rent After Development $ 87 PSF Incremental Rent $ — 20PSF Incremental NOI $ 48MM Yield on Capital 24% Value Created $ 867MM Value Created Per Share $ 425 Average remaining of
Slide 33: PENN2 Redevelopment
PENN2 REDEVELOPMENT VORNADO
Slide 34: Eleventh Avenue - Designed by Richard Rogers
260 ELEVENTH AVENUE - DESIGNED BY RICHARD ROGERS VORNADO
Slide 35: A Leader in Sustainability
A LEADER IN SUSTAINABILITY NATIONALLY RECOGNIZED, INDUSTRY-LEADING SUSTAINABILITY PROGRAM @ 5-time Energy Star Partner of the Year, Sustained Excellence recipient 2018 @ 26 million square feet of owned and managed LEED certified buildings Largest landlord of LEED certified buildings in New York City
Slide 36: Appendix
TAR OH EEE RS VORNADO REALTY TRUST
Slide 37: Non-GAAP Financial Measures
NON-GAAP FINANCIAL MEASURES. VORNADO ‘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 b
Slide 38: Non-GAAP Reconciliations
NON-GAAP RECONCILIATIONS (amounts in mations) Reconciliation of Vornado Realty Trust Net income to NOI at share - Cash Basis {for the year ended December 31, 2018 Deduct Income trom partially owned entities Loss from realestate fund investments Interest and other investment income, net [Net gains on
Slide 39: Non-GAAP Reconciliations
NON-GAAP RECONCILIATIONS Amounts in mations) vo Reconciliation of Net income attributable to the Operating Partnership to EBITDA and EBITDA, as adjusted for the year ended December 31, 2018, For the Year Ended December 31, 2018 Net income attributable to the Operating Partnership, $476 Interest and
Slide 40: Non-GAAP Reconciliations
NON-GAAP RECONCILIATIONS Amounts i mitions) Reconciliation of theMART Net income to EBITDA, NOI - Cash Basis and NOI - Cash Basis adding back fret ‘year ended December 31, 2018 Netincome dost) sae EBITDA Tr Nen-ash achustments and other as NOI-Cash Bone NOI - Cash Basis adding back fee ent on Reconc
Slide 41: Vornado
VORNADO
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