logo
Share SHARE
FONT-SIZE Plus   Neg

Vornado Realty Trust Q1 FFO Down 31%

Vornado Realty Trust (VNO) on Monday reported a 31 percent decline in funds from operations for the first quarter from last year. The results reflect higher one-time gains as well as a higher gain from its stake in retailer J.C. Penney Co. Inc. (JCP) in the year-ago period.

Excluding items, the real estate income trust's adjusted funds from operations for the latest quarter increased.

Vornado holds an 11 percent stake in JC Penney and a 32.7 percent interest in toy retailer Toys "R" Us Inc.

The New York-based company's first-quarter funds from operations of FFO plus assumed conversions declined to $348.45 million or $1.82 per share from $505.93 million or $2.64 per share in the year-ago period. FFO is a key metric measure for a real estate investment trust.

FFO is GAAP net income or loss adjusted to exclude net gain from sales of depreciated real estate assets, real estate impairment losses, depreciation and amortization expense from real estate assets, and extraordinary items.

FFO for the latest quarter include gains from derivative positions in JC Penney of $1.05 million, compared to gains of $17.16 million in the same period last year. The prior-year results also include net gain on extinguishment of debt of $83.91 million and mezzanine loans loss reversal of $82.74 million.

Excluding items, adjusted FFO rose to $346.84 million or $1.81 per share from $331.17 million or $1.73 per share in the prior-year period.

Vornado's net income for the first quarter declined to $233.74 million or $1.25 per share from $399.22 million or $2.12 per share in the year ago quarter.

The latest quarter's results include net gains on sale of real estate of $56.5 million and real estate impairment losses of $8.9 million, while the year-ago period's results include net gains on sale of real estate of $51.2 million.

Adjusted net income was $187.5 million or $1.01 per share, up from $178.8 million, or $0.97 per share in the year ago quarter.

Revenues for the quarter edged up to $727.47 million from $726.88 million in the same period last year.

On average, analysts polled by Thomson Reuters expected the company to report earnings of $1.77 per share for the quarter on revenues of $650.56 million. Analysts' estimates typically exclude special items.

VNO closed Monday's trading at $87.54, up $1.26 or 1.46 percent on a volume of 867,984 shares.

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Editors Pick
Health IQ Insurance Services, a startup focused on providing life insurance for health-conscious individuals, said it has secured $34.6 million in Series C funding, led by Andreessen Horowitz. To date, the company has raised a total of $81 million in funding mostly from its existing investors. General Motors Co. is recalling nearly 49,000 trucks worldwide to fix a fuel tank issue that can increase the risk of a fire. The recall covers Chevrolet Silverado 3500 and GMC Sierra 3500 trucks from the 2011 through 2015 model years, all equipped with dual fuel tanks. Meredith Corp. is reportedly in talks for the acquisition of Time Inc, with a staunch support from billionaire brothers Charles and David Koch. Des Moines-based Meredith is the publisher of Family Circle and Better Homes and Gardens and aims to acquire the publisher of Time, People and Fortune Magazines.
comments powered by Disqus
Follow RTT