U.S. Markets closed

Vornado Announces Third Quarter 2018 Financial Results

Vornado Announces Third Quarter 2018 Financial Results

NEW YORK, Oct. 29, 2018 (GLOBE NEWSWIRE) -- VORNADO REALTY TRUST (VNO) reported today:

Quarter Ended September 30, 2018 Financial Results

NET INCOME attributable to common shareholders for the quarter ended September 30, 2018 was $190.6 million, or $1.00 per diluted share, compared to a loss of $29.0 million, or $0.15 per diluted share, for the prior year's quarter.  Adjusting net income (loss) attributable to common shareholders for the items that impact the comparability of period to period net income (loss) listed in the table on page 2, net income attributable to common shareholders, as adjusted (non-GAAP) for the quarters ended September 30, 2018 and 2017 was $66.2 million and $73.0 million, or $0.35 and $0.38 per diluted share, respectively.

FUNDS FROM OPERATIONS ("FFO") attributable to common shareholders plus assumed conversions (non-GAAP) for the quarter ended September 30, 2018 was $182.5 million, or $0.95 per diluted share, compared to $100.2 million, or $0.52 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 September 30, 2018 and 2017 was $185.6 million and $185.1 million, or $0.97 and $0.97 per diluted share, respectively.

Nine Months Ended September 30, 2018 Financial Results

NET INCOME attributable to common shareholders for the nine months ended September 30, 2018 was $284.3 million, or $1.49 per diluted share, compared to $134.7 million, or $0.71 per diluted share, for the nine months ended September 30, 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 nine months ended September 30, 2018 and 2017 was $192.9 million and $187.3 million, or $1.01 and $0.98 per diluted share, respectively.

FFO attributable to common shareholders plus assumed conversions (non-GAAP) for the nine months ended September 30, 2018 was $494.9 million, or $2.59 per diluted share, compared to $564.4 million, or $2.95 per diluted share, for the nine months ended September 30, 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 nine months ended September 30, 2018 and 2017 was $547.5 million and $525.5 million, or $2.86 and $2.75 per diluted share, respectively.

The following table reconciles our net income (loss) 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
September 30,
  For the Nine Months Ended
September 30,
  2018   2017   2018   2017
Net income (loss) attributable to common shareholders $ 190,645     $ (29,026 )   $ 284,338     $ 134,698  
Per diluted share $ 1.00     $ (0.15 )   $ 1.49     $ 0.71  
               
Certain (income) expense items that impact net income (loss) attributable to common shareholders:              
Net gain on sale of our ownership interests in 666 Fifth Avenue Office Condominium $ (134,032 )   $     $ (134,032 )   $  
Net gain on the repayment of our loan investment in 666 Fifth Avenue Office Condominium (7,308 )       (7,308 )    
Decrease in fair value of marketable securities (including our share of partially owned entities) 7,966         26,602      
Net gains on sale of real estate (including our share of partially owned entities) (3,350 )   (1,522 )   (28,104 )   (20,981 )
Our share of loss (income) from real estate fund investments (excluding our $4,252 share of One Park Avenue potential additional transfer taxes and reduction in carried interest for the nine months ended September 30, 2018) 748     7,794     (617 )   11,333  
Loss from discontinued operations and sold properties (primarily related to JBG SMITH Properties operating results and transaction costs through July 17, 2017 spin-off) 42     53,739     4,886     40,542  
Impairment loss on investment in Pennsylvania Real Estate Investment Trust ("PREIT")     44,465         44,465  
Net gain resulting from Urban Edge Properties ("UE") operating partnership unit issuances     (5,200 )       (21,100 )
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 repayment of our Suffolk Downs JV debt investments             (11,373 )
Other 3,207     9,515     3,133     13,333  
  (132,727 )   108,791     (97,451 )   56,219  
Noncontrolling interests' share of above adjustments 8,242     (6,767 )   6,061     (3,624 )
Total of certain (income) expense items that impact net income (loss) attributable to common shareholders $ (124,485 )   $ 102,024     $ (91,390 )   $ 52,595  
               
Net income attributable to common shareholders, as adjusted (non-GAAP) $ 66,160     $ 72,998     $ 192,948     $ 187,293  
Per diluted share (non-GAAP) $ 0.35     $ 0.38     $ 1.01     $ 0.98  

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
September 30,
  For the Nine Months Ended
September 30,
  2018   2017   2018   2017
FFO attributable to common shareholders plus assumed conversions (non-GAAP)(1) $ 182,516     $ 100,178     $ 494,941     $ 564,431  
Per diluted share (non-GAAP) $ 0.95     $ 0.52     $ 2.59     $ 2.95  
               
Certain expense (income) items that impact FFO attributable to common shareholders plus assumed conversions:              
Decrease in fair value of marketable securities (including our share of partially owned entities) $ 7,966     $     $ 26,602     $  
Net gain on the repayment of our loan investment in 666 Fifth Avenue Office Condominium (7,308 )       (7,308 )    
FFO from discontinued operations and sold properties (primarily related to JBG SMITH Properties operating results and transaction costs through July 17, 2017 spin-off) (1,152 )   38,771     (3,297 )   (68,843 )
Our share of FFO from real estate fund investments (excluding our $4,252 share of One Park Avenue potential additional transfer taxes and reduction in carried interest for the nine months ended September 30, 2018) 748     7,794     (617 )   11,333  
Impairment loss on investment in PREIT     44,465         44,465  
Net gain resulting from UE operating partnership unit issuances     (5,200 )       (21,100 )
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 repayment of our Suffolk Downs JV debt investments             (11,373 )
Other 3,071     4,701     2,751     3,986  
  3,325     90,531     56,120     (41,532 )
Noncontrolling interests' share of above adjustments (206 )   (5,583 )   (3,514 )   2,579  
Total of certain expense (income) items that impact FFO attributable to common shareholders plus assumed conversions, net $ 3,119     $ 84,948     $ 52,606     $ (38,953 )
               
FFO attributable to common shareholders plus assumed conversions, as adjusted (non-GAAP) $ 185,635     $ 185,126     $ 547,547     $ 525,478  
Per diluted share (non-GAAP) $ 0.97     $ 0.97     $ 2.86     $ 2.75  

____________________________________________________________

  1. See page 10 for a reconciliation of our net income (loss) attributable to common shareholders to FFO attributable to common shareholders plus assumed conversions (non-GAAP) for the three and nine months ended September 30, 2018 and 2017.

Acquisition Activity

1535 Broadway

On July 30, 2012, we entered into a lease with Host Hotels & Resorts, Inc. (HST) (“Host”), under which we redeveloped the retail and signage components of the Marriott Times Square Hotel. We accounted for this lease as a “capital lease” and recorded a $240,000,000 capital lease asset and liability. On September 21, 2018, we acquired the retail condominium from Host for $442,000,000 (inclusive of the $240,000,000 capital lease liability). The original lease transaction provided that we would become the 100% owner through a put/call arrangement, based on a pre-negotiated formula. This transaction satisfies the put/call arrangement. Our 100% fee interest includes 45,000 square feet of retail, the 1,611 seat Marquis Theater and the largest digital sign in New York with a 330 linear foot, 25,000 square foot display.

Disposition Activity

666 Fifth Avenue Office Condominium

On August 3, 2018, we completed the sale of our 49.5% interests in the 666 Fifth Avenue Office Condominium. We received net proceeds of $120,000,000 and recognized a financial statement gain of $134,032,000 which is included in "net gains on disposition of wholly owned and partially owned assets" on our consolidated statements of income for the three and nine months ended September 30, 2018. The gain for tax purposes was approximately $244,000,000. We continue to own all of the 666 Fifth Avenue Retail Condominium encompassing the Uniqlo, Tissot and Hollister stores with 125 linear feet of frontage on Fifth Avenue between 52nd and 53rd Street.

Concurrently with the sale of our interests, the existing mortgage loan on the property was repaid and we received net proceeds of $55,244,000 for the participation we held in the mortgage loan. We recognized a financial statement gain of $7,308,000, which is included in "net gains on disposition of wholly owned and partially owned assets" on our consolidated statements of income for the three and nine months ended September 30, 2018.

Financing Activities

On August 9, 2018, we completed a $120,000,000 refinancing of 4 Union Square South, a 206,000 square foot Manhattan retail property. The interest-only loan carries a rate of LIBOR plus 1.40% (3.50% as of September 30, 2018) and matures in 2025, as extended. The property was previously encumbered by a $113,000,000 mortgage at LIBOR plus 2.15%, which was scheduled to mature in 2019.

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% (3.30% as of October 26, 2018).

 Third Quarter Leasing Activity:

  • 312,000 square feet of New York Office space (308,000 square feet at share) at an initial rent of $67.35 per square foot and a weighted average term of 9.5 years. The GAAP and cash mark-to-markets on the 203,000 square feet of second generation space were positive 26.5% and 11.8%, respectively. Tenant improvements and leasing commissions were $9.52 per square foot per annum, or 14.1% of initial rent.
  • 104,000 square feet of New York Retail space (99,000 square feet at share) at an initial rent of $135.05 per square foot and a weighted average term of 5.7 years. The GAAP and cash mark-to-markets on the 95,000 square feet of second generation space were negative 40.0% (resulting from an accounting adjustment at acquisition of the property in 2015 under which we marked the rent up to market) and positive 36.3%, respectively. Tenant improvements and leasing commissions were $3.24 per square foot per annum, or 2.4% of initial rent.
  • 28,000 square feet at theMART (all at share) at an initial rent of $57.92 per square foot and a weighted average term of 7.4 years. The GAAP and cash mark-to-markets on the 23,000 square feet of second generation space were positive 14.4% and 1.9%, respectively. Tenant improvements and leasing commissions were $2.91 per square foot per annum, or 5.0% of initial rent.
  • 160,000 square feet at 555 California Street (112,000 square feet at share) at an initial rent of $91.16 per square foot and a weighted average term of 12.1 years. The GAAP and cash mark-to-markets on the 33,000 square feet of second generation space were positive 30.4% and 10.4%, respectively. Tenant improvements and leasing commissions were $8.41 per square foot per annum, or 9.2% of initial rent.

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

The percentage increase (decrease) 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   555 California Street
Same store NOI at share % increase (decrease)(1):              
  Three months ended September 30, 2018 compared to September 30, 2017 0.9 %   0.6 %   (3.8 )%   17.2 %
  Nine months ended September 30, 2018 compared to September 30, 2017 3.3 %   3.0 %   1.6 %   14.3 %
  Three months ended September 30, 2018 compared to June 30, 2018 (0.4 )%   0.6 %   (9.8 )% (3) (1.2 )%
                 
Same store NOI at share - cash basis % increase (decrease):              
  Three months ended September 30, 2018 compared to September 30, 2017 4.3 %   3.9 %   2.2 %   19.9 %
  Nine months ended September 30, 2018 compared to September 30, 2017 5.9 %   5.2 %   7.6 %   19.0 %
  Three months ended September 30, 2018 compared to June 30, 2018 0.9 %   2.0 %   (6.7 )% (3) (5.4 )%

____________________

(1 ) See pages 12 through 17 for same store NOI at share and same store NOI at share - cash basis reconciliations.
 
    Increase  
(2 ) Excluding Hotel Pennsylvania, same store NOI at share % increase:    
  Three months ended September 30, 2018 compared to September 30, 2017 1.0 %  
  Nine months ended September 30, 2018 compared to September 30, 2017 3.1 %  
  Three months ended September 30, 2018 compared to June 30, 2018 1.0 %  
       
  Excluding Hotel Pennsylvania, same store NOI at share - cash basis % increase:    
  Three months ended September 30, 2018 compared to September 30, 2017 4.3 %  
  Nine months ended September 30, 2018 compared to September 30, 2017 5.3 %  
  Three months ended September 30, 2018 compared to June 30, 2018 2.5 %  
       
(3 ) Excluding tradeshows which are seasonal, same store NOI at share decreased by 4.4% and same store NOI at share - cash basis decreased by 0.3%.

NOI At Share:

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

(Amounts in thousands) For the Three Months Ended   For the Nine Months Ended
  September 30,   June 30, 2018   September 30,
  2018   2017     2018   2017
New York:                  
Office $ 184,146   $ 185,169   $ 184,867   $ 556,169   $ 531,702
Retail 92,858   90,088   87,109   267,876   269,091
Residential 5,202   5,981   6,338   17,681   18,450
Alexander's 10,626   11,937   11,909   34,110   35,646
Hotel Pennsylvania 4,496   5,319   5,644   5,955   6,948
Total New York 297,328   298,494   295,867   881,791   861,837
                   
Other:                  
theMART 25,257   26,019   27,816   79,948   78,090
555 California Street 13,515   11,519   13,660   40,686   35,585
Other investments 13,524   18,202   17,086   50,664   62,014
Total Other 52,296   55,740   58,562   171,298   175,689
                   
NOI at share $ 349,624   $ 354,234   $ 354,429   $ 1,053,089   $ 1,037,526
 

NOI At Share - Cash Basis:

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

(Amounts in thousands) For the Three Months Ended   For the Nine Months Ended
  September 30,   June 30, 2018   September 30,
  2018   2017     2018   2017
New York:                  
Office $ 181,575   $ 172,741   $ 180,710   $ 540,484   $ 503,052
Retail 84,976   81,612   79,139   243,704   240,998
Residential 5,358   5,417   5,463   16,420   16,301
Alexander's 11,774   12,280   12,098   35,911   36,679
Hotel Pennsylvania 4,520   5,352   5,744   6,111   7,046
Total New York 288,203   277,402   283,154   842,630   804,076
                   
Other:                  
theMART 26,234   25,417   27,999   81,312   74,846
555 California Street 13,070   10,889   13,808   39,704   33,365
Other investments 13,374   18,219   16,987   50,271   59,976
Total Other 52,678   54,525   58,794   171,287   168,187
                   
NOI at share - cash basis $ 340,881   $ 331,927   $ 341,948   $ 1,013,917   $ 972,263
 

 

Development/Redevelopment as of September 30, 2018

(Amounts in thousands, except square feet)           (At Share)                 Full
Quarter
Stabilized
Operations
        Property
Rentable
Sq. Ft.
  Excluding Land Costs             Available for Occupancy  
Current Projects   Segment     Incremental
Budget
  Amount
Expended
    %
Complete
  Start    
220 Central Park South - residential condominiums   Other   397,000    $ 1,400,000     $ 1,123,726   (1)   80.3 %   Q3 2012   N/A   N/A
Moynihan Office Building - (50.1% interest)(2)   New York   850,000    400,000     54,823       13.7 %   Q2 2017   Q3 2020   Q2 2022
One Penn Plaza - renovation(3)
  New York   2,535,000    200,000     6,253       3.1 %   Q4 2018   N/A   N/A
512 West 22nd Street - office/retail (55.0% interest)   New York   173,000    72,000     50,065   (4)   69.5 %   Q4 2015   Q4 2018   Q1 2020
61 Ninth Avenue - office/retail (45.1% interest)(5)   New York   170,000    69,000     57,970       84.0 %   Q1 2016   Q2 2018   Q2 2019
345 Montgomery Street (555 California Street) (70.0% interest)
  Other   64,000    32,000     9,523   (6)   29.8 %   Q1 2018   Q3 2019   Q3 2020
606 Broadway - office/retail (50.0% interest)   New York   34,000    30,000     23,307   (7)   77.7 %   Q2 2016   Q4 2018   Q2 2020
825 Seventh Avenue - office (50.0% interest)
  New York   165,000    15,000     3,086       20.6 %   Q2 2018   Q1 2020   Q1 2021
Total current projects           $ 2,218,000     $ 1,328,753                    
                                   
Future Opportunities   Segment   Property
Zoning
Sq. Ft.
                         
Penn Plaza - multiple opportunities - office/residential/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                           
Total undeveloped land       605,000                           

_______________________

  1. Excludes land and acquisition costs of $515,426.
  2. Excludes $115,230 for our share of the upfront contribution of $230,000. 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. Excludes land and acquisition costs of $57,000.
  5. The building is subject to a ground lease which expires in 2115.
  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, October 30, 2018 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 47604591. A telephonic replay of the conference call will be available from 1:30 p.m. ET on October 30, 2018 through November 29, 2018. To access the replay, please dial 888-843-7419 and enter the passcode 47604591#. 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, 2017. Such factors include, among others, risks associated with the timing of and costs associated with property improvements, financing commitments and general competitive factors.

VORNADO REALTY TRUST
CONSOLIDATED BALANCE SHEETS

(Amounts in thousands, except unit, share, and per share amounts) As of
  September 30, 2018   December 31, 2017
ASSETS      
Real estate, at cost:      
Land $ 3,306,264     $ 3,143,648  
Buildings and improvements 10,083,313     9,898,605  
Development costs and construction in progress 1,579,628     1,615,101  
Leasehold improvements and equipment 106,945     98,941  
     Total 15,076,150     14,756,295  
Less accumulated depreciation and amortization (3,109,361 )   (2,885,283 )
Real estate, net 11,966,789     11,871,012  
Cash and cash equivalents 772,524     1,817,655  
Restricted cash 147,286     97,157  
Marketable securities 157,951     182,752  
Tenant and other receivables, net of allowance for doubtful accounts of $3,935 and $5,526 69,796     58,700  
Investments in partially owned entities 909,440     1,056,829  
Real estate fund investments 369,767     354,804  
220 Central Park South condominium units ready for sale 307,552      
Receivable arising from the straight-lining of rents, net of allowance of $1,705 and $954 937,294     926,711  
Deferred leasing costs, net of accumulated amortization of $202,480 and $191,827 443,350     403,492  
Identified intangible assets, net of accumulated amortization of $167,861 and $150,837 139,994     159,260  
Assets related to discontinued operations 74     1,357  
Other assets 456,203     468,205  
  $ 16,678,020     $ 17,397,934  
LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND EQUITY      
Mortgages payable, net $ 8,119,075     $ 8,137,139  
Senior unsecured notes, net 843,710     843,614  
Unsecured term loan, net 749,874     748,734  
Unsecured revolving credit facilities 80,000      
Accounts payable and accrued expenses 415,531     415,794  
Deferred revenue 176,211     227,069  
Deferred compensation plan 102,281     109,177  
Liabilities related to discontinued operations 205     3,620  
Preferred shares redeemed on January 4 and 11, 2018     455,514  
Other liabilities 229,042     464,635  
Total liabilities 10,715,929     11,405,296  
Commitments and contingencies      
Redeemable noncontrolling interests:      
Class A units - 12,591,157 and 12,528,899 units outstanding 919,154     979,509  
Series D cumulative redeemable preferred units - 177,101 units outstanding 5,428     5,428  
     Total redeemable noncontrolling interests 924,582     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 190,285,799 and 189,983,858 shares 7,589     7,577  
Additional capital 7,580,463     7,492,658  
Earnings less than distributions (4,135,602 )   (4,183,253 )
Accumulated other comprehensive income 34,173     128,682  
     Total Vornado shareholders' equity 4,377,917     4,337,652  
Noncontrolling interests in consolidated subsidiaries 659,592     670,049  
Total equity 5,037,509     5,007,701  
  $ 16,678,020     $ 17,397,934  


VORNADO REALTY TRUST

OPERATING RESULTS

(Amounts in thousands, except per share amounts) For the Three Months Ended
September 30,
  For the Nine Months Ended
September 30,
  2018   2017   2018   2017
Revenues $ 542,048     $ 528,755     $ 1,620,303     $ 1,547,900  
                               
Income from continuing operations $ 219,101     $ 37,176     $ 324,401     $ 225,078  
Income (loss) from discontinued operations 61     (47,930 )   381     (14,501 )
Net income (loss) 219,162     (10,754 )   324,782     210,577  
Less net (income) loss attributable to noncontrolling interests in:              
Consolidated subsidiaries (3,312 )   (4,022 )   31,137     (18,436 )
Operating Partnership (12,671 )   1,878     (18,992 )   (9,057 )
Net income (loss) attributable to Vornado 203,179     (12,898 )   336,927     183,084  
Preferred share dividends (12,534 )   (16,128 )   (38,103 )   (48,386 )
Preferred share issuance costs         (14,486 )    
NET INCOME (LOSS) attributable to common shareholders $ 190,645     $ (29,026 )   $ 284,338     $ 134,698  
               
INCOME (LOSS) PER COMMON SHARE – BASIC:              
Income from continuing operations, net $ 1.00     $ 0.09     $ 1.50     $ 0.78  
Loss from discontinued operations, net     (0.24 )       (0.07 )
Net income (loss) per common share $ 1.00     $ (0.15 )   $ 1.50     $ 0.71  
Weighted average shares outstanding 190,245     189,593     190,176     189,401  
               
INCOME (LOSS) PER COMMON SHARE – DILUTED:              
Income from continuing operations, net $ 1.00     $ 0.09     $ 1.49     $ 0.78  
Loss from discontinued operations, net     (0.24 )       (0.07 )
Net income (loss) per common share $ 1.00     $ (0.15 )   $ 1.49     $ 0.71  
Weighted average shares outstanding 191,327     190,847     191,292     191,257  
               
FFO attributable to common shareholders plus assumed conversions (non-GAAP) $ 182,516     $ 100,178     $ 494,941     $ 564,431  
Per diluted share (non-GAAP) $ 0.95     $ 0.52     $ 2.59     $ 2.95  
               
FFO attributable to common shareholders plus assumed conversions, as adjusted (non-GAAP) $ 185,635     $ 185,126     $ 547,547     $ 525,478  
Per diluted share (non-GAAP) $ 0.97     $ 0.97     $ 2.86     $ 2.75  
               
Weighted average shares used in determining FFO per diluted share 191,327     190,893     191,292     191,304  


VORNADO REALTY TRUST

NON-GAAP RECONCILIATIONS

The following table reconciles net income (loss) attributable to common shareholders to FFO attributable to common shareholders plus assumed conversions:

null
(Amounts in thousands, except per share amounts) For the Three Months Ended
September 30,
  For the Nine Months Ended
September 30,
  2018   2017   2018   2017
Net income (loss) attributable to common shareholders $ 190,645     $ (29,026 )   $ 284,338     $ 134,698  
Per diluted share $ 1.00     $ (0.15 )   $ 1.49     $ 0.71  
               
FFO adjustments:              
Depreciation and amortization of real property $ 105,015     $ 102,953     $ 309,024     $ 361,949  
Net gains on sale of real estate (133,961 )   (1,530 )   (158,138 )   (3,797 )
Proportionate share of adjustments to equity in net income (loss) of partially owned entities to arrive at FFO:              
Depreciation and amortization of real property 23,688     31,997     77,282