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Vornado Announces Fourth Quarter 2018 Financial Results

Vornado Announces Fourth Quarter 2018 Financial Results

NEW YORK, Feb. 11, 2019 (GLOBE NEWSWIRE) -- VORNADO REALTY TRUST (VNO) reported today:

Quarter Ended December 31, 2018 Financial Results

NET INCOME attributable to common shareholders for the quarter ended December 31, 2018 was $100.5 million, or $0.53 per diluted share, compared to $27.3 million, or $0.14 per diluted share, for the prior year's quarter. Adjusting net income attributable to common shareholders for the items that impact the comparability of period-to-period net income listed in the table on page 2, net income attributable to common shareholders, as adjusted (non-GAAP) for the quarters ended December 31, 2018 and 2017 was $51.0 million and $65.8 million, or $0.27 and $0.34 per diluted share, respectively.

FUNDS FROM OPERATIONS ("FFO") attributable to common shareholders plus assumed conversions (non-GAAP) for the quarter ended December 31, 2018 was $210.1 million, or $1.10 per diluted share, compared to $153.2 million, or $0.80 per diluted share, for the prior year's quarter.  Adjusting FFO attributable to common shareholders plus assumed conversions for the items that impact the comparability of period-to-period FFO listed in the table on page 3, FFO attributable to common shareholders plus assumed conversions, as adjusted (non-GAAP) for the quarters ended December 31, 2018 and 2017 was $171.4 million and $187.1 million, or $0.90 and $0.98 per diluted share, respectively.

Year Ended December 31, 2018 Financial Results

NET INCOME attributable to common shareholders for the year ended December 31, 2018 was $384.8 million, or $2.01 per diluted share, compared to $162.0 million, or $0.85 per diluted share, for the year ended December 31, 2017. Adjusting net income attributable to common shareholders for the items that impact the comparability of period-to-period net income listed in the table on page 2, net income attributable to common shareholders, as adjusted (non-GAAP) for the year ended December 31, 2018 and 2017 was $243.9 million and $252.9 million, or $1.27 and $1.32 per diluted share, respectively.

FFO attributable to common shareholders plus assumed conversions (non-GAAP) for the year ended December 31, 2018 was $729.7 million, or $3.82 per diluted share, compared to $717.8 million, or $3.75 per diluted share, for the year ended December 31, 2017. Adjusting FFO attributable to common shareholders plus assumed conversions for the items that impact the comparability of period-to-period FFO listed in the table on page 3, FFO attributable to common shareholders plus assumed conversions, as adjusted (non-GAAP) for the years ended December 31, 2018 and 2017 was $718.8 million and $713.0 million, or $3.76 and $3.73 per diluted share, respectively.

The following table reconciles our net income attributable to common shareholders to net income attributable to common shareholders, as adjusted (non-GAAP):

(Amounts in thousands, except per share amounts) For the Three Months Ended
December 31,
  For the Year Ended
December 31,
  2018   2017   2018   2017
Net income attributable to common shareholders $ 100,494     $ 27,319     $ 384,832     $ 162,017  
Per diluted share $ 0.53     $ 0.14     $ 2.01     $ 0.85  
               
Certain (income) expense items that impact net income attributable to common shareholders:              
After-tax net gain on sale of 220 Central Park South condominium units $ (67,336 )   $     $ (67,336 )   $  
After-tax purchase price fair value adjustment related to the increase in ownership of the Farley joint venture (27,289 )       (27,289 )    
Our share of loss (income) from real estate fund investments (excluding our $4,252 share of One Park Avenue potential additional transfer taxes) 24,366     (529 )   23,749     10,804  
Real estate impairment losses (including our share of partially owned entities) 12,000     145     12,000     7,692  
Decrease in fair value of marketable securities resulting from a new GAAP accounting standard effective January 1, 2018 (including our share of partially owned entities) 3,733         30,335      
(Income) loss from discontinued operations and sold properties (primarily related to JBG SMITH Properties operating results and transaction costs through July 17, 2017 spin-off and 666 Fifth Avenue Office Condominium operations through August 3, 2018 sale) (242 )   1,664     5,727     43,615  
Tax expense related to the reduction of our taxable REIT subsidiaries deferred tax assets     34,800         34,800  
Net gains on sale of real estate (including our share of partially owned entities)     (585 )   (28,104 )   (21,574 )
Net gain on sale of our ownership interests in 666 Fifth Avenue Office Condominium         (134,032 )    
Net gain on the repayment of our loan investment in 666 Fifth Avenue Office Condominium         (7,308 )    
Our share of potential additional New York City transfer taxes based on a Tax Tribunal interpretation which Vornado is appealing         23,503      
Preferred share issuance costs         14,486      
Impairment loss on investment in Pennsylvania Real Estate Investment Trust ("PREIT")             44,465  
Net gain resulting from Urban Edge Properties ("UE") operating partnership unit issuances             (21,100 )
Net gain on repayment of our Suffolk Downs JV debt investments             (11,373 )
Other 1,996     5,515     4,046     9,900  
  (52,772 )   41,010     (150,223 )   97,229  
Noncontrolling interests' share of above adjustments 3,268     (2,539 )   9,285     (6,382 )
Total of certain (income) expense items that impact net income attributable to common shareholders $ (49,504 )   $ 38,471     $ (140,938 )   $ 90,847  
               
Net income attributable to common shareholders, as adjusted (non-GAAP) $ 50,990     $ 65,790     $ 243,894     $ 252,864  
Per diluted share (non-GAAP) $ 0.27     $ 0.34     $ 1.27     $ 1.32  
                               

The following table reconciles our FFO attributable to common shareholders plus assumed conversions (non-GAAP) to FFO attributable to common shareholders plus assumed conversions, as adjusted (non-GAAP):

(Amounts in thousands, except per share amounts) For the Three Months Ended   For the Year Ended
  December 31, December 31,
  2018   2017   2018   2017
FFO attributable to common shareholders plus assumed conversions (non-GAAP)(1) $ 210,100     $ 153,151     $ 729,740     $ 717,805  
Per diluted share (non-GAAP) $ 1.10     $ 0.80     $ 3.82     $ 3.75  
               
Certain (income) expense items that impact FFO attributable to common shareholders plus assumed conversions:              
After-tax net gain on sale of 220 Central Park South condominium units $ (67,336 )   $     $ (67,336 )   $  
Our share of FFO from real estate fund investments (excluding our $4,252 share of One Park Avenue potential additional transfer taxes) 24,366     (529 )   23,749     10,804  
FFO from discontinued operations and sold properties (primarily related to JBG SMITH Properties operating results and transaction costs through July 17, 2017 spin-off and 666 Fifth Avenue Office Condominium operations through August 3, 2018 sale) (242 )   (4,006 )   (2,834 )   (73,240 )
Tax expense related to the reduction of our taxable REIT subsidiaries deferred tax assets     34,800         34,800  
Our share of potential additional New York City transfer taxes based on a Tax Tribunal interpretation which Vornado is appealing         23,503      
Preferred share issuance costs         14,486      
Net gain on the repayment of our loan investment in 666 Fifth Avenue Office Condominium         (7,308 )    
Impairment loss on investment in PREIT             44,465  
Net gain resulting from UE operating partnership unit issuances             (21,100 )
Net gain on repayment of our Suffolk Downs JV debt investments             (11,373 )
Other 1,987     5,951     4,033     10,328  
  (41,225 )   36,216     (11,707 )   (5,316 )
Noncontrolling interests' share of above adjustments 2,552     (2,242 )   727     534  
Total of certain (income) expense items that impact FFO attributable to common shareholders plus assumed conversions, net $ (38,673 )   $ 33,974     $ (10,980 )   $ (4,782 )
               
FFO attributable to common shareholders plus assumed conversions, as adjusted (non-GAAP) $ 171,427     $ 187,125     $ 718,760     $ 713,023  
Per diluted share (non-GAAP) $ 0.90     $ 0.98     $ 3.76     $ 3.73  
                               

____________________________________________________________

(1) See page 10 for a reconciliation of our net income attributable to common shareholders to FFO attributable to common shareholders plus assumed conversions (non-GAAP) for the three months and year ended December 31, 2018 and 2017.

Fourth Quarter Activity:

Acquisition:

Farley Office and Retail Building

On October 30, 2018, we increased our ownership interest in the joint venture that is developing the Farley Office and Retail Building to 95.0% from 50.1% by acquiring a 44.9% additional ownership interest from the Related Companies ("Related"). The purchase price was $41,500,000 plus the reimbursement of $33,026,000 of costs funded by Related through October 30, 2018. We consolidate the accounts of the joint venture as of October 30, 2018. In connection therewith, we recorded a net gain of $44,060,000, which is included in "purchase price fair value adjustment" on our consolidated statements of income. As a result of this gain, because we hold our investment in the joint venture through a taxable REIT subsidiary, $16,771,000 of income tax expense was recognized on our consolidated statements of income.

Financing:

On October 26, 2018, we extended our $750,000,000 unsecured term loan from October 2020 to February 2024. The interest rate on the extended unsecured term loan was lowered from LIBOR plus 1.15% to LIBOR plus 1.00% (3.52% as of December 31, 2018). In connection with the extension of our unsecured term loan, we entered into an interest rate swap from LIBOR plus 1.00% to a fixed rate of 3.87% through October 2023.

On November 16, 2018, we completed a $205,000,000 refinancing of 150 West 34th Street, a 78,000 square foot Manhattan retail property. The interest-only loan carries a rate of LIBOR plus 1.88% (4.26% as of December 31, 2018) and matures in 2024, as extended. Concurrently, we invested $105,000,000 in a participation in the refinanced mortgage loan, which earns interest at a rate of LIBOR plus 2.00% (4.38% as of December 31, 2018) and also matures in 2024, as extended, and is included in "other assets" on our consolidated balance sheets. The property was previously encumbered by a mortgage of the same amount at LIBOR plus 2.25%, which was scheduled to mature in 2020.

Other:

220 Central Park South ("220 CPS")

During the fourth quarter of 2018, we completed the sale of 11 condominium units at 220 CPS for net proceeds aggregating $214,776,000 and resulting in a financial statement net gain of $81,224,000 which is included in "net gains on disposition of wholly owned and partially owned assets" on our consolidated statements of income. In connection with these sales, $13,888,000 of income tax expense was recognized in our consolidated statements of income and $213,000,000 of the $950,000,000 220 CPS loan was repaid.

Fourth Quarter Activity - continued:

Leasing:

  • 479,000 square feet of New York Office space (415,000 square feet at share) at an initial rent of $72.97 per square foot and a weighted average term of 7.7 years. The GAAP and cash mark-to-market rent on the 357,000 square feet of second generation space were positive 6.9% and 1.2%, respectively. Tenant improvements and leasing commissions were $10.22 per square foot per annum, or 14.0% of initial rent.

  • 26,000 square feet of New York Retail space (17,000 square feet at share) at an initial rent of $211.34 per square foot and a weighted average term of 8.2 years. The GAAP and cash mark-to-market rent on the 7,000 square feet of second generation space were positive 3.0% and 1.1%, respectively. Tenant improvements and leasing commissions were $17.62 per square foot per annum, or 8.3% of initial rent.

  • 46,000 square feet at theMART (all at share) at an initial rent of $60.73 per square foot and a weighted average term of 5.6 years. The GAAP and cash mark-to-market rent on the 46,000 square feet of second generation space were positive 8.7% and 3.2%, respectively. Tenant improvements and leasing commissions were $1.61 per square foot per annum, or 2.7% of initial rent.

Same Store Net Operating Income ("NOI") At Share:

The percentage (decrease) increase in same store NOI at share and same store NOI at share - cash basis of our New York segment, theMART and 555 California Street are summarized below.

    Total   New York(2)   theMART(3)   555
California
Street
Same store NOI at share % (decrease) increase(1):              
  Three months ended December 31, 2018 compared to December 31, 2017 (6.3 )%   (3.1 )%   (56.6 )%   16.8 %
  Year ended December 31, 2018 compared to December 31, 2017 0.8 %   1.4 %   (12.2 )%   14.9 %
  Three months ended December 31, 2018 compared to September 30, 2018 (5.3 )%   (1.1 )%   (58.0 )%   3.8 %
                         
Same store NOI at share - cash basis % (decrease) increase:                      
  Three months ended December 31, 2018 compared to December 31, 2017 (1.7 )%   1.9 %   (49.8 )%   15.8 %
  Year ended December 31, 2018 compared to December 31, 2017 3.9 %   4.3 %   (6.5 )%   18.1 %
  Three months ended December 31, 2018 compared to September 30, 2018 (4.2 )%   %   (52.9 )%   5.7 %
____________________                        
(1) See pages 12 through 17 for same store NOI at share and same store NOI at share - cash basis reconciliations.                      
          (Decrease)            
          Increase            
(2) Excluding Hotel Pennsylvania, same store NOI at share % (decrease) increase:                    
  Three months ended December 31, 2018 compared to December 31, 2017       (3.0 )%            
  Year ended December 31, 2018 compared to December 31, 2017       1.5 %            
  Three months ended December 31, 2018 compared to September 30, 2018       (1.7 )%            
                       
  Excluding Hotel Pennsylvania, same store NOI at share - cash basis % increase (decrease):                    
  Three months ended December 31, 2018 compared to December 31, 2017       2.1 %            
  Year ended December 31, 2018 compared to December 31, 2017       4.5 %            
  Three months ended December 31, 2018 compared to September 30, 2018       (0.6 )%            
                       
(3) Includes additional real estate tax expense accruals of $12,124,000 and $15,148,000 for the three months and year ended December 31, 2018, respectively, due to an increase in the tax-assessed value of theMART. 

NOI At Share:

The elements of our New York and Other NOI at share for the three months and year ended December 31, 2018 and 2017 and the three months ended September 30, 2018 are summarized below.

(Amounts in thousands) For the Three Months Ended   For the Year Ended
  December 31,   September 30, 
  December 31,
  2018   2017   2018   2018   2017
New York:                  
Office $ 186,832     $ 189,481     $ 184,146     $ 743,001     $ 721,183  
Retail 85,549     90,853     92,858     353,425     359,944  
Residential 5,834     5,920     5,202     23,515     24,370  
Alexander's 11,023     11,656     10,626     45,133     47,302  
Hotel Pennsylvania 5,961     6,318     4,496     11,916     13,266  
Total New York 295,199     304,228     297,328     1,176,990     1,166,065  
                   
Other:                  
theMART(1) 10,981     24,249     25,257     90,929     102,339  
555 California Street 14,005     12,003     13,515     54,691     47,588  
Other investments 9,346     23,377     13,524     60,010     85,391  
Total Other 34,332     59,629     52,296     205,630     235,318  
                   
NOI at share $ 329,531     $ 363,857     $ 349,624     $ 1,382,620     $ 1,401,383  
                                       

____________________

(1) Includes additional real estate tax expense accruals of $12,124 and $15,148 for the three months and year ended December 31, 2018, respectively, due to an increase in the tax-assessed value of theMART.

NOI At Share - Cash Basis:

The elements of our New York and Other NOI at share - cash basis for the three months and year ended December 31, 2018 and 2017 and the three months ended September 30, 2018 are summarized below.

(Amounts in thousands) For the Three Months Ended   For the Year Ended
  December 31,   September 30,   December 31,
  2018   2017   2018      2018   2017
New York:                  
Office $ 185,624     $ 175,787     $ 181,575     $ 726,108     $ 678,839  
Retail 80,515     83,320     84,976     324,219     324,318  
Residential 5,656     5,325     5,358     22,076     21,626  
Alexander's 11,129     12,004     11,774     47,040     48,683  
Hotel Pennsylvania 6,009     6,351     4,520     12,120     13,397  
Total New York 288,933     282,787     288,203     1,131,563     1,086,863  
                   
Other:                  
theMART(1) 12,758     24,396     26,234     94,070     99,242  
555 California Street 13,784     11,916     13,070     53,488     45,281  
Other investments 8,524     23,179     13,374     58,795     83,155  
Total Other 35,066     59,491     52,678     206,353     227,678  
                   
NOI at share - cash basis $ 323,999     $ 342,278     $ 340,881     $ 1,337,916     $ 1,314,541  
                                       

____________________

(1) Includes additional real estate tax expense accruals of $12,124 and $15,148 for the three months and year ended December 31, 2018, respectively, due to an increase in the tax-assessed value of theMART.

Development/Redevelopment as of December 31, 2018

(Amounts in thousands, except square feet)             (At Share)                  
            Excluding Land Costs                 Full
        Property                             Available    Quarter
        Rentable   Incremental   Amount     %       for    Stabilized 
Current Projects   Segment   Sq. Ft.    Budget   Expended     Complete   Start    Occupancy    Operations 
220 Central Park South - residential condominiums   Other   397,000     $ 1,400,000     $ 1,199,913   (1)   85.7 %   Q3 2012   N/A   N/A
Farley Office and Retail Building - (95.0% interest)   New York   850,000     760,000     137,267   (2)   18.1 %   Q2 2017   Q3 2020   Q2 2022
PENN1(3)   New York   2,545,000     200,000   (4) 9,725       4.9 %   Q4 2018   N/A   N/A
512 West 22nd Street - office (55.0% interest)   New York   173,000     72,000     52,505   (5)   72.9 %   Q4 2015   Q1 2019   Q3 2020
345 Montgomery Street (555 California Street) (70.0% interest)   Other   78,000     32,000     15,284   (6)   47.8 %   Q1 2018   Q3 2019   Q3 2020
606 Broadway - office/retail (50.0% interest)   New York   34,000     30,000     25,601   (7)   85.3 %   Q2 2016   Q4 2018   Q2 2020
825 Seventh Avenue - office (50.0% interest)   New York   165,000     15,000     4,484       29.9 %   Q2 2018   Q1 2020   Q1 2021
Total current projects           $ 2,509,000     $ 1,444,779                      
                                     
        Property                                    
      Zoning                            
Future Opportunities   Segment Sq. Ft.                            
Penn District - multiple opportunities - office/residential/retail   New York   TBD                          
PENN2 - office/retail   New York   TBD                          
Hotel Pennsylvania   New York   2,052,000                            
260 Eleventh Avenue - office(8)   New York   280,000                            
                                   
Undeveloped Land                                  
29, 31, 33 West 57th Street (50.0% interest)   New York   150,000                            
484, 486 Eighth Avenue and 265, 267 West 34th Street   New York   125,000                            
527 West Kinzie, Chicago   Other   330,000                            
Rego Park III (32.4% interest)   Other   TBD                          
Total undeveloped land       605,000                            
                                             

_______________________

(1) Excludes land and acquisition costs of $515,426.
(2) Excludes our share of the upfront contribution of $230,000 and net of anticipated historic tax credits. The building and land are subject to a lease which expires in 2116.
(3) The building is subject to a ground lease which expires in 2098.
(4) We expect the final budget will exceed $200,000 after anticipated scope changes.
(5) Excludes land and acquisition costs of $57,000.
(6) Excludes land and building costs of $31,000.
(7) Excludes land and acquisition costs of $22,703.
(8) The building is subject to a ground lease which expires in 2114.

Conference Call and Audio Webcast

As previously announced, the Company will host a quarterly earnings conference call and an audio webcast on Tuesday, February 12, 2019 at 10:00 a.m. Eastern Time (ET). The conference call can be accessed by dialing 888-771-4371 (domestic) or 847-585-4405 (international) and indicating to the operator the passcode 48102474. A telephonic replay of the conference call will be available from 1:30 p.m. ET on February 12, 2019 through March 14, 2019. To access the replay, please dial 888-843-7419 and enter the passcode 48102474#. A live webcast of the conference call will be available on the Company’s website at www.vno.com and an online playback of the webcast will be available on the website following the conference call.

Supplemental Financial Information

Further details regarding results of operations, properties and tenants can be accessed at the Company’s website www.vno.com. Vornado Realty Trust is a fully - integrated equity real estate investment trust.

Certain statements contained herein may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. For a discussion of factors that could materially affect the outcome of our forward-looking statements and our future results and financial condition, see “Risk Factors” in Part I, Item 1A, of our Annual Report on Form 10-K for the year ended December 31, 2018. Such factors include, among others, risks associated with the timing of and costs associated with property improvements, financing commitments and general competitive factors.

CONTACT:
JOSEPH MACNOW
(212) 894-7000

VORNADO REALTY TRUST   
CONSOLIDATED BALANCE SHEET   
(Amounts in thousands, except unit, share, and per share amounts) As of
  December 31, 2018   December 31, 2017
ASSETS      
Real estate, at cost:      
Land $ 3,306,280     $ 3,143,648  
Buildings and improvements 10,110,992     9,898,605  
Development costs and construction in progress 2,266,491     1,615,101  
Moynihan Train Hall development expenditures 445,693      
Leasehold improvements and equipment 108,427     98,941  
Total 16,237,883     14,756,295  
Less accumulated depreciation and amortization (3,180,175 )   (2,885,283 )
Real estate, net 13,057,708     11,871,012  
Cash and cash equivalents 570,916     1,817,655  
Restricted cash 145,989     97,157  
Marketable securities 152,198     182,752  
Tenant and other receivables, net of allowance for doubtful accounts of $4,154 and $5,526 73,322     58,700  
Investments in partially owned entities 858,113     1,056,829  
Real estate fund investments 318,758     354,804  
220 Central Park South condominium units ready for sale 99,627      
Receivable arising from the straight-lining of rents, net of allowance of $1,644 and $954 935,131     926,711  
Deferred leasing costs, net of accumulated amortization of $207,529 and $191,827 400,313     403,492  
Identified intangible assets, net of accumulated amortization of $172,114 and $150,837 136,781     159,260  
Other assets 431,938     469,562  
  $ 17,180,794     $ 17,397,934  
LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND EQUITY      
Mortgages payable, net $ 8,167,798     $ 8,137,139  
Senior unsecured notes, net 844,002     843,614  
Unsecured term loan, net 744,821     748,734  
Unsecured revolving credit facilities 80,000      
Moynihan Train Hall obligation 445,693      
Accounts payable and accrued expenses 430,976     415,794  
Deferred revenue 167,730     227,069  
Deferred compensation plan 96,523     109,177  
Preferred shares redeemed on January 4 and 11, 2018     455,514  
Other liabilities 311,806     468,255  
Total liabilities 11,289,349     11,405,296  
Commitments and contingencies      
Redeemable noncontrolling interests:      
Class A units - 12,544,477 and 12,528,899 units outstanding 778,134     979,509  
Series D cumulative redeemable preferred units - 177,101 units outstanding 5,428     5,428  
Total redeemable noncontrolling interests 783,562     984,937  
Vornado's shareholders' equity:      
Preferred shares of beneficial interest: no par value per share; authorized 110,000,000 shares; issued and outstanding 36,798,580 and 36,799,573 shares 891,294     891,988  
Common shares of beneficial interest: $0.04 par value per share; authorized 250,000,000 shares; issued and outstanding 190,535,499 and 189,983,858 shares 7,600     7,577  
Additional capital 7,725,857     7,492,658  
Earnings less than distributions (4,167,184 )   (4,183,253 )
Accumulated other comprehensive income 7,664     128,682  
Total Vornado shareholders' equity 4,465,231     4,337,652  
Noncontrolling interests in consolidated subsidiaries 642,652     670,049  
Total equity 5,107,883     5,007,701  
  $ 17,180,794     $ 17,397,934  
               


VORNADO REALTY TRUST   
OPERATING RESULTS   
                               
(Amounts in thousands, except per share amounts) For the Three Months Ended   For the Year Ended
  December 31,   December 31,
  2018   2017   2018   2017
Revenues $ 543,417     $ 536,226     $ 2,163,720     $ 2,084,126  
               
Income from continuing operations $ 97,564     $ 52,278     $ 421,965     $ 277,356  
Income (loss) from discontinued operations 257     1,273     638     (13,228 )
Net income 97,821     53,551     422,603     264,128  
Less net loss (income) attributable to noncontrolling interests in:              
Consolidated subsidiaries 21,886     (7,366 )   53,023     (25,802 )
Operating Partnership (6,680 )   (1,853 )   (25,672 )   (10,910 )
Net income attributable to Vornado 113,027     44,332     449,954     227,416  
Preferred share dividends (12,533 )   (17,013 )   (50,636 )   (65,399 )
Preferred share issuance costs         (14,486 )    
NET INCOME attributable to common shareholders $ 100,494     $ 27,319     $ 384,832     $ 162,017  
               
INCOME PER COMMON SHARE – BASIC:              
Income from continuing operations, net $ 0.53     $ 0.14     $ 2.02     $ 0.92  
Loss from discontinued operations, net             (0.07 )
Net income per common share $ 0.53     $ 0.14     $ 2.02     $ 0.85  
Weighted average shares outstanding 190,348     189,898     190,219     189,526  
               
INCOME PER COMMON SHARE – DILUTED:              
Income from continuing operations, net $ 0.53     $ 0.14     $ 2.01     $ 0.91  
Loss from discontinued operations, net             (0.06 )
Net income per common share $ 0.53     $ 0.14     $ 2.01     $ 0.85  
Weighted average shares outstanding 191,199     191,020     191,290     191,258  
               
FFO attributable to common shareholders plus assumed conversions (non-GAAP) $ 210,100     $ 153,151     $ 729,740     $ 717,805  
Per diluted share (non-GAAP) $ 1.10     $ 0.80     $ 3.82     $ 3.75  
               
FFO attributable to common shareholders plus assumed conversions, as adjusted (non-GAAP) $ 171,427     $ 187,125     $ 718,760     $ 713,023  
Per diluted share (non-GAAP) $ 0.90     $ 0.98     $ 3.76     $ 3.73  
               
Weighted average shares used in determining FFO per diluted share 191,199     191,063     191,189     191,304  
                               


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VORNADO REALTY TRUST  
NON-GAAP RECONCILIATIONS  
                               
The following table reconciles net income attributable to common shareholders to FFO attributable to common shareholders plus assumed conversions:  
(Amounts in thousands, except per share amounts) For the Three Months Ended   For the Year Ended
  December 31,   December 31,
  2018   2017   2018   2017
Net income attributable to common shareholders $ 100,494     $ 27,319     $ 384,832     $ 162,017  
Per diluted share $ 0.53     $ 0.14     $ 2.01     $ 0.85  
               
FFO adjustments:              
Depreciation and amortization of real property $ 104,067     $ 106,017     $ 413,091     $ 467,966  
Net gains on sale of real estate         (158,138 )