Vornado Realty Trust · NYSE:VNO
Vornado Realty Trust — Conference Presentation (March 2018)
39 slides from Vornado Realty Trust's conference presentation, Mar 2, 2018
Slide 1: Vornado Realty Trust March 2018
EXHIBIT 99.1 VORNADO REALTY TRUST MARCH 2018
Slide 2: Forward-Looking Statements
LOOKING VORNADO 1983, as amended, and 3p "believes", “expects, “anticipates” estimates’, “intends”, “plans”, “would”, “may” 2017 Market Data
Slide 3: Non-GAAP Financial Measures
NON-GAAP FINANCIAL MEASURES VORNADO — ‘and net asset value (’NAV"), yy LP. (the "Operating Partnership") ‘employed by other companies. , New York Retail, ineMART | 2017. "NAV per share” that a sharehol Thesenon-GAAP
Slide 4: The Vornado Story
THE VORNADO STORY VORNADO’ NEW YORK CITY LEADING OPERATING PREMIER ASSETS CATEORM PENN PLAZA FORTRESS BALANCE OPPORTUNITY SHEET TRACK RECORD OF
Slide 5: Vornado Overview
VORNADO OVERVIEW VORNADO . oer P_ components ofor? | among blue on REITs ‘Components of NOI® + Vornado’ 39.4MM SF (301 + New York focused company, with an irreplaceable NYC portfolio generating 89% of the Company’s NOI NYC Street Retail . hy asset: ith blue chip tenant roster jith over it NYC ~ Manh
Slide 6: New York Office & Street Retail Portfolios by Submarket
NEW YORK OFFICE & STREET RETAIL PORTFOLIOS BY SUBMARKET VORNADO NYC Office Submarket by Square Footage NYC Retail Submarket by Cash NO! As of 12/31/2017 As of 12/31/2017 Chelsea/ Meatpacking Upper Fifth Avenue & Times Square
Slide 7: NYC Continues to Be a Magnet for Talent
NYC CONTINUES TO BE A MAGNET FOR TALENT/ VORNADO NYC JOB GROWTH OUTPACES THE NATION Reacry TRUST + New York is the gateway population growth with the strongest projected annually for the next three decades, surpassing 9 mi by 2040 (NYC. + Diversified employment base = In 1990, 1 in 2 New York City j
Slide 8: Manhattan Is Well Positioned to Absorb Office Supply
MANHATTAN IS WELL TO ABSORB OFFICE SUPPLY VORNADO + Manhattan hi the past 20 years Manhattan Office inventory + New York City office-using jobs has grown at an | 7 average of 31,000 per year over the past 8 years + Average job growth of 16,000 per year will absorb the new supply i | Under Developmen
Slide 9: Consistent NYC Tourism Growth Supports Retail Sales
CONSISTENT NYC TOURISM GROWTH SUPPORTS RETAIL SALES VORNADO International ar 7 60 BH Domestic ast ns of Tourists 1998 1999 2000 2001-2002 2003-2004 «20052006 -««2007«2008-« 20092010 2011-2012, 20132014 «201520162017 Source: Cushman & Wakeleld, NYC #Co
Slide 10: Catalysts for Shareholder Value Creation
CATALYSTS FOR SHAREHOLDER VALUE CREATION voRnare + Trading at a significant discount to NAV . public way to play fast growing + Growth = 61 Ninth Avenui - 51; d Street ~ Farley Office Building ~ 260 Eleventh Avenue + Penn Plaza NOI upside and value creation million SF of office with average in- plac
Slide 11: Components of Net Asset Value
COMPONENTS OF NET ASSET VALUE VORNADO (Amounts in mins, except square feet ana per share amounts) 01 Pro forma NOI= P cash ss Loss: cashbens —__fiste__valuo™ New York offen 3 $ @ay 450% Now York - Reta BF = Se tase Now York Resident 2 = 2 350% 99 - 99 5.00% oe Canin cat 45 45° NIA z cx oy s 15, 3 at
Slide 12: Fortress Balance Sheet
FORTRESS BALANCE SHEET (Amounts in mitions) VORNADO Secured debt Unsecured debt i ling Toys R Us) Less: ir Total debt 220 CPS (mortgage + term loan) 666 Fifth Avenue Office debt at share Cash, Net Debt EBITDA, as adjusted” Net Debt/EBITDA, as adjusted 2. See page 54 for non-GAAP reconciation + -$4 b
Slide 13: Vornado Remains Leader Among Best-in-Class REITs
VORNADO VORNADO REMAINCO LEADER AMONG BEST-IN-CLASS REITS sar Same-Store Cash NOI CAGR Same-Store Cash NOI CAGR (2012-2017) (2007-2017) 73% esx 65% 5.6% 46% ASK asx 4.2% 43% 3.9% 3.6% - 32% 3.2% 27% 3.0% 30% 3 iil [i SiG eXP EL PSA EGR AVE SPG VIR FRT PLD VNO sic FOR AVE SPC FRT PLD
Slide 14: Leader in Repositioning and Modernizing Properties
LEADER IN REPOSITIONING AND MODERNIZING PROPERTIES VORNADO SELECT CASE STUDIES (Amounts in thousands) 7 WEST 347TH STREET 479,000 SF Incremental Stabilized Cash NOI $ 15,700 Capital Cost (Including TI/LC) 77,200 Yield 20.3% Value Created $ 271,700 $s 134 Value Created Per Share 2 Shown at 70% shore
Slide 15: Vornado's Office Assets Located at the Epicenter of Growth
VORNADO'S OFFICE ASSETS LOCATED AT THE EPICENTER OF GROWTH VORNADO re ° \ CHICAGO
Slide 16: Select New York City Office Properties
SELECT NEW YORK CITY OFFICE PROPERTIES VORNADO’
Slide 17: Blue-Chip Office Tenant Roster
BLUE-CHIP OFFICE TENANT ROSTER VORNADO’ FINANCIAL TAMI HEALTHCARE / INSURANCE REAL ESTATE Bloomberg guna amazon [Ed 08% univensiry @. JL Covumaia UNIVERSITY. Bankof America CUSHMAN & UBS carte COHEN « STEERS aco Google @Astate. — C tiniveatieathear LAI ‘Bank Microsoft TPG oe = lt LEGAL OTHER sthuatl
Slide 18: Select New York City Street Retail Properties
SELECT NEW YORK CITY STREET RETAIL PROPERTIES
Slide 19: Dominance of the Key High Street Retail Submarkets in Manhattan
DOMINANCE OF THE KEY HIGH STREET RETAIL SUBMARKETS IN MANHATTAN AV ‘ren BRON aa 1 Excludes churches. clubs and retail owned by users
Slide 20: Blue-Chip Retail Tenant Roster
BLUE-CHIP RETAIL TENANT ROSTER VORNADO’ y dyson SEPHORA Cewrdier Christotle HARRY WINSTON a), oft TOPSHOP puantean = EY stood W@svnglesstut —— Late agar — "Fane Berluti © COACH stanpucks nesenve: * STARBUCKS: "5 - RR vicroRis amazon J.CREW G WOKE roreverzl Chloé MomimoDutti Nea INVICTA — om te TISSO
Slide 21: Street Retail Portfolio
STREET RETAIL PORTFOLIO VORNADO UPPER FIFTH & TIMES SQUARE BUTTONED UP FOR TERM eALTH TAGE Over 50% of Vornado street retail NOI comes from Upper Fifth Avenue and Times Square. Both are locked up for term with high quality tenants TeeR nae ER Sens New York Retail Expirations by Revenue as of 12/31/2
Slide 22: theMART
theMART VORNADO theMART building (Chicago) - best examp| sonlemmperany afficnanaes valle! sileon val alley. Transformed from a showroom building to the premier creative an \ub in the Midwes Iting in significant earnings growth and value creatior + 3,670,000 SF - 98.6% Occupancy” + Located in the hot
Slide 23: California Street
555 CALIFORNIA STREET VORNADO sin Francisco and arguably the most iconic building n the west coast - further NOI growth eicecind from 'gom redevelope: ed concourse and 315/345 Mont: + 1,805,000 SF - 94.2% Occupancy” +15 mi In SF of office space leased since 2012 + 2017 Cash NOI (non-GAAP)® of $50.1
Slide 24: Growth from Development
VORNADO REALTY TRUST GROWTH FROM DEVELOPMENT
Slide 25: Penn Plaza | An Unprecedented Opportunity
PENN PLAZA | AN UNPRECEDENTED OPPORTUNITY VORNADO!
Slide 26: Penn Plaza | An Unprecedented Opportunity
PENN PLAZA | AN UNPRECEDENTED OPPORTUNITY VERNARC EMPIRE STATE BUILOING Unique Value Creation portunity + Existing office leasable space of 6.7MM SF with of $61 PSF + Hudson Yards to the + Transformation of the neighborhood will also substantially enhance the 's Laser 2/77 23 N
Slide 27: Penn Plaza | Best Positioned from Transit Standpoint
PENN PLAZA | BEST POSITIONED FROM TRANSIT STANDPOINT VORNADO’ Zt rest =
Slide 28: Farley Office Building Development
FARLEY OFFICE BUILDING DEVELOPMENT VORNADO BEGINNING THE TRANSFORMATION OF PENN PLAZA woALTY Feuer + A50/50 joint venture between Vornado and Qf in Penn Plaza into the new Parley Office Building and Train Hall + Total budget of $515 million at share + The joint venture will develop 730,000 SF of leg
Slide 29: Penn Redevelopment
PENN 1 REDEVELOPMENT VORNADO’
Slide 30: Penn Redevelopment - Preliminary Projections
VORNARC PENN 1 REDEVELOPMENT - PRELIMINARY PROJECTIONS Redevelopment Cost $ 200MM In-Place Office Rent 64 PSF Average Market Rent After Redevelopment 84 PSF Incremental Rent 20 PSF — Incremental NOI $ 48MM Yield on Capital 24% Yield on Capital (including estimated TI/LC) 12% Average remaining office
Slide 31: Well-Positioned with Existing Assets and New Developments
WELL-POSITIONED WITH EXISTING ASSETS AND NEW DEVELOPMENTS VORNADO CONCENTRATED IN THE FAST GROWING WEST SIDE woALTY Feuer : 170,000 RSF MPLETION: 20 2018
Slide 32: Eleventh Avenue - Designed by Richard Rogers
260 ELEVENTH AVENUE - DESIGNED BY RICHARD ROGERS VORNADO!
Slide 33: A Leader in Sustainability
A LEADER IN SUSTAINABILITY VORNADO RECOGNIZED, IND! INABILITY PROGR @ Energy Star paithss of the Year in 2013, 2014, 2015, and 2017, Sustained Excellence recipient @ 21 million square feet of owned and managed LEED certified buildings C) ara nace of LEED certified buildings in New York City with ove
Slide 34: Appendix
VORNADO REALTY TRUST APPENDIX
Slide 35: Liabilities - Used in Calculation of Net Asset Value
LIABILITIES - USED IN CALCULATION OF NET ASSET VALUE VeEnseo Amounts in miions) Q4 2017 Adjustments Net 7 i har $7,602 $ (950) $6,652 Non-consolidated real estate debt 2,834 (699) © 2,135 Corporate unsecured debt 850 - 850 Revolver/term loan 750 (750) © - Other liabilities 706 - 706 Perpetual prefer
Slide 36: Non-GAAP Reconciliations
NON-GAAP RECONCILIATIONS voRnare (Amounts in mins) months ended December 31, 2017 Net income Deduct: Our share of (income) loss from partially owned entities Interest and other investment income, net Loss (income) from discontinued operations Depreciation and amortization expense General and adminis
Slide 37: Non-GAAP Reconciliations
NON-GAAP RECONCILIATIONS (Amounts in mins) voRnare for the twelve months ended December 31, 2017 Interest and debt expense Depreciation and amortization Income tax exp EBITDA Adjustments, net! EBITDA, as adjusted .djusted For the Year Ended December 31, 2017 $
Slide 38: Non-GAAP Reconciliations
NON-GAAP RECONCILIATIONS voRnare (Amounts in mons) free rent for the year ended December 31, 2017 Forthe Year Ended For the Year Ended December 31, 2017__ December 31, 2011 Net income (a Interest and debt expense 31, Depreciation and amortization 21.6 EBITDA 48.3 beste hades and other 3.1 Not sis 51
Slide 39: Vornado Realty Trust March 2018
VORNADO REALTY TRUST MARCH 2018
Vornado Realty Trust — Conference Presentation (March 2018) on 6ix