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Vornado reports Q1 earnings

Farley Post Office Project (Credit: Empire State Development)

Vornado Realty Trust said it collected only 53% of the rent due from its retail tenants in April. The REIT acknowledged that many tenants “are seeking rent relief”. Office tenants paid 90% of rents from last month. The company’s rental revenue stream is supported by over 1,000 office leases with an average lease term of 8 years, and over 300 retail leases with an average lease term of 6.5 years. 

  • Worth Noting: Vornado has furloughed 1,803 employees, including 1,293 cleaning staff, 414 Hotel Pennsylvania employees, and 96 corporate staff.
  • Dig Deeper: CEO Steve Roth sought to reiterate the company’s financial strength, saying that it has the ample liquidity to complete the renovations of Penn 1 and Penn 2 buildings and its redevelopment of the Farley Post Office Building with no debt attached to them. Shares of the REIT are down over 40% year to date. The firm boasts $1.67 billion of cash and restricted cash, and is scheduled to receive $750 million from 220 Central Park South closings. Here are the company’s financial statements.
  • Vornado is glad they made the following deal in April 2019: Crown Acquisitions and Qatar Investment Authority acquired a 45.4 percent stake in Vornado‘s Fifth Avenue and Times Square retail portfolio. The deal valued the assets at around $5.6 billion, with the investors contributing about $1.3 billion of cash. The JV took on $950 million of mortgage debt.

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