/EINPresswire.com/ -- NEW YORK, NY--(Marketwired - February 16, 2016) - VORNADO REALTY TRUST (NYSE: VNO) filed its Form 10-K for the year ended December 31, 2015 today and reported:

Fourth Quarter 2015 Results

NET INCOME attributable to common shareholders for the quarter ended December 31, 2015 was $230.7 million, or $1.22 per diluted share, compared to $513.2 million, or $2.72 per diluted share, for the quarter ended December 31, 2014. Net income for the quarters ended December 31, 2015 and 2014 includes $142.7 million and $460.2 million, respectively, of net gains on sale of real estate and $4.1 million and $5.7 million, respectively, of real estate impairment losses. In addition, the quarters ended December 31, 2015 and 2014 includes certain other items that affect comparability which are listed in the table below. Adjusting net income attributable to common shareholders for net gains on sale of real estate, real estate impairment losses and the items in the table below, net of amounts attributable to noncontrolling interests, net income attributable to common shareholders for the quarters ended December 31, 2015 and 2014 was $83.7 million and $79.4 million, or $0.44 and $0.42 per diluted share, respectively. 

FUNDS FROM OPERATIONS attributable to common shareholders plus assumed conversions ("FFO") for the quarter ended December 31, 2015 was $259.5 million, or $1.37 per diluted share, compared to $230.1 million, or $1.22 per diluted share for the prior year's quarter. Adjusting FFO for certain items that affect comparability which are listed in the table below, FFO for the quarters ended December 31, 2015 and 2014 was $240.1 million and $217.1 million, or $1.27 and $1.15 per diluted share, respectively.

                                                    For the Quarters Ended  
(Amounts in thousands, except per share amounts)         December 31,       
                                                   ------------------------ 
                                                      2015         2014     
                                                   -----------  ----------- 
FFO (1)                                            $   259,528  $   230,143 
                                                    ==========   ========== 
Per Share                                          $      1.37  $      1.22 
                                                    ==========   ========== 
                                                                            
Items that affect comparability income (expense):                           
 FFO from discontinued operations and sold              19,251  $    44,474 
  properties                                       $                        
 Acquisition and transaction related costs              (4,951)     (12,763)
 Net gain on sale of residential condominiums            4,231          363 
 Write-off of deferred financing costs and                   -      (16,747)
  defeasance costs in connection with refinancings                          
 Other, net                                              2,171       (1,491)
                                                    ----------   ---------- 
                                                        20,702       13,836 
Noncontrolling interests' share of above                (1,284)        (803)
 adjustments                                                                
                                                    ----------   ---------- 
Items that affect comparability, net               $    19,418  $    13,033 
                                                    ==========   ========== 
                                                                            
FFO as adjusted for comparability                  $  240,110   $  217,110  
                                                    ==========   ========== 
Per Share                                          $     1.27   $     1.15  
                                                    ==========   ========== 
                                                                            
---------------------------------------------------                         
                                                                            
(1) See page 4 for a reconciliation of our net income to FFO for the        
 quarters ended December 31, 2015 and 2014.                                 

Year Ended 2015 Results

NET INCOME attributable to common shareholders for the year ended December 31, 2015 was $679.9 million, or $3.59 per diluted share, compared to $783.4 million, or $4.15 per diluted share, for the year ended December 31, 2014. Net income for the years ended December 31, 2015 and 2014 includes $293.6 million and $518.8 million, respectively, of net gains on sale of real estate, and $17.0 million and $26.5 million, respectively, of real estate impairment losses. In addition, the years ended December 31, 2015 and 2014 includes certain other items that affect comparability which are listed in the table below. Adjusting net income attributable to common shareholders for net gains on sale of real estate, real estate impairment losses and the items in the table below, net of amounts attributable to noncontrolling interests, net income attributable to common shareholders for the years ended December 31, 2015 and 2014 was $305.5 million and $306.3 million, or $1.61 and $1.62 per diluted share, respectively.

FFO for the year ended December 31, 2015 was $1,039.0 million, or $5.48 per diluted share, compared to $911.1 million, or $4.83 per diluted share, for the prior year. Adjusting FFO for certain items that affect comparability which are listed in the table below, FFO for the years ended December 31, 2015 and 2014 was $915.3 million and $825.3 million, or $4.83 and $4.37 per diluted share, respectively.

                                                     For the Years Ended    
(Amounts in thousands, except per share amounts)        December 31,        
                                                 ---------------------------
                                                     2015          2014     
                                                 ------------- -------------
FFO (1)                                           $ 1,039,035   $   911,130 
                                                 ============= =============
Per Share                                         $      5.48   $      4.83 
                                                 ============= =============
                                                                            
Items that affect comparability income (expense):                           
  Reversal of allowance for deferred tax assets                             
   (re: taxable REIT subsidiary's ability to use                            
   NOLs)                                          $    90,030   $         - 
  FFO from discontinued operations and sold                                 
   properties                                          46,423       188,932 
  Acquisition and transaction related costs           (12,511)      (16,392)
  Net gain on sale of residential condominiums                              
   and a land parcel in 2014                            6,724        13,568 
  Our share of impairment loss on India real                                
   estate venture's non-depreciable real estate        (4,502)            - 
  Toys "R" Us FFO (negative FFO) (including an                              
   impairment loss of $75,196 in 2014)                  2,500       (60,024)
  Impairment loss and loan reserve on investment                            
   in Suffolk Downs                                    (1,551)      (10,263)
  Write-off of deferred financing costs and                                 
   defeasance costs in connection with                                      
   refinancings                                             -       (22,660)
  Other, net                                            4,555        (2,097)
                                                 ------------- -------------
                                                      131,668        91,064 
Noncontrolling interests' share of above                                    
 adjustments                                           (7,928)       (5,210)
                                                 ------------- -------------
Items that affect comparability, net              $   123,740   $    85,854 
                                                 ============= =============
                                                                            
                                                                            
FFO as adjusted for comparability                $   915,295   $   825,276  
                                                 ============= =============
Per Share                                        $      4.83   $      4.37  
                                                 ============= =============
                                                                            
-------------------------------------------------                           

(1) See page 4 for a reconciliation of our net income to FFO for the years ended December 31, 2015 and 2014.

Supplemental Financial Information

Further details regarding the Company's 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, 2015. Such factors include, among others, risks associated with the timing of and costs associated with property improvements, financing commitments and general competitive factors.

(tables to follow)

VORNADO REALTY TRUST
OPERATING RESULTS FOR THE QUARTERS AND YEARS ENDED
DECEMBER 31, 2015 AND 2014

                                                                            
(Amounts in thousands,                                                      
 except per share         For The Quarters Ended      For The Years Ended   
 amounts)                      December 31,              December 31,       
                        -------------------------  ------------------------ 
                            2015         2014         2015         2014     
                        ------------  -----------  -----------  ----------- 
                                                                            
Revenues                 $   651,581  $   597,010  $ 2,502,267  $ 2,312,512 
                          ==========   ==========   ==========   ========== 
                                                                            
Income from continuing                                                      
 operations                  281,560      108,766      807,168      423,350 
Income from discontinued                                                    
 operations                    1,984      467,220       52,262      585,676 
                          ----------   ----------   ----------   ---------- 
Net income                   283,544      575,986      859,430    1,009,026 
Less net income                                                             
 attributable to                                                            
 noncontrolling                                                             
 interests in:                                                              
  Consolidated                                                              
   Subsidiaries              (17,395)     (11,322)     (55,765)     (96,561)
  Operating Partnership      (14,993)     (31,049)     (43,073)     (47,563)
  Preferred unit                                                            
   distributions of the                                                     
   Operating Partnership         (49)         (12)        (158)         (50)
                          ----------   ----------   ----------   ---------- 
Net income attributable                                                     
 to Vornado                  251,107      533,603      760,434      864,852 
Preferred share                                                             
 dividends                   (20,365)     (20,365)     (80,578)     (81,464)
                          ----------   ----------   ----------   ---------- 
Net income attributable                                                     
 to common shareholders  $   230,742  $   513,238  $   679,856  $   783,388 
                          ==========   ==========   ==========   ========== 
                                                                            
Net income per common                                                       
 share:                                                                     
  Basic                  $      1.22  $      2.73  $      3.61  $      4.18 
                          ==========   ==========   ==========   ========== 
  Diluted                $      1.22  $      2.72  $      3.59  $      4.15 
                          ==========   ==========   ==========   ========== 
                                                                            
Weighted average shares:                                                    
  Basic                      188,537      187,776      188,353      187,572 
                          ==========   ==========   ==========   ========== 
  Diluted                    189,688      188,970      189,564      188,690 
                          ==========   ==========   ==========   ========== 
                                                                            
FFO attributable to                                                         
 common shareholders                                                        
 plus assumed                                                               
 conversions             $   259,528  $   230,143  $ 1,039,035  $   911,130 
                          ==========   ==========   ==========   ========== 
Per diluted share        $      1.37  $      1.22  $      5.48  $      4.83 
                          ==========   ==========   ==========   ========== 
                                                                            
FFO as adjusted for                                                         
 comparability           $   240,110  $   217,110  $   915,295  $   825,276 
                          ==========   ==========   ==========   ========== 
Per diluted share        $      1.27  $      1.15  $      4.83  $      4.37 
                          ==========   ==========   ==========   ========== 
                                                                            
Weighted average shares                                                     
 used in determining FFO                                                    
 per diluted share           189,688      188,970      189,564      188,690 
                          ==========   ==========   ==========   ========== 

The following table reconciles our net income to FFO:

                                                                            
(Amounts in thousands)    For The Quarters Ended      For The Years Ended   
                               December 31,              December 31,       
                        -------------------------  ------------------------ 
                            2015         2014         2015         2014     
                        ------------  -----------  -----------  ----------- 
Reconciliation of our                                                       
 net income to FFO:                                                         
Net income attributable                                                     
 to Vornado              $   251,107  $   533,603  $   760,434  $   864,852 
Depreciation and                                                            
 amortization of real                                                       
 property                    131,910      129,944      514,085      517,493 
Net gains on sale of                                                        
 real estate                (142,693)    (449,396)    (289,117)    (507,192)
Real estate impairment                                                      
 losses                            -        5,676          256       26,518 
Proportionate share of                                                      
 adjustments to equity                                                      
 in net income of                                                           
 partially owned                                                            
 entities to arrive at                                                      
 FFO:                                                                       
  Depreciation and                                                          
   amortization of real                                                     
   property                   37,275       24,350      143,960      117,766 
  Net gains on sale of                                                      
   real estate                     -      (10,820)      (4,513)     (11,580)
  Real estate impairment                                                    
   losses                      4,141            -       16,758            - 
  Income tax effect of                                                      
   above adjustments               -            -            -       (7,287)
Noncontrolling                                                              
 interests' share of                                                        
 above adjustments            (1,869)      17,127      (22,342)      (8,073)
                          ----------   ----------   ----------   ---------- 
FFO attributable to                                                         
 Vornado                     279,871      250,484    1,119,521      992,497 
Preferred share                                                             
 dividends                   (20,365)     (20,365)     (80,578)     (81,464)
                          ----------   ----------   ----------   ---------- 
FFO attributable to                                                         
 common shareholders         259,506      230,119    1,038,943      911,033 
Convertible preferred                                                       
 share dividends                  22           24           92           97 
                          ----------   ----------   ----------   ---------- 
FFO attributable to                                                         
 common shareholders                                                        
 plus assumed                                                               
 conversions             $   259,528  $   230,143  $ 1,039,035  $   911,130 
                          ==========   ==========   ==========   ========== 
                                                                            
------------------------                                                    

FFO is computed in accordance with the definition adopted by the Board of Governors of the National Association of Real Estate Investment Trusts ("NAREIT"). NAREIT defines FFO as 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 other specified non-cash items, including the pro rata share of such adjustments of unconsolidated subsidiaries. FFO and FFO per diluted share are used by management, investors and analysts to facilitate meaningful comparisons of operating performance between periods and among our peers because it excludes the effect of real estate depreciation and amortization and net gains on sales, which are based on historical costs and implicitly assume that the value of real estate diminishes predictably over time, rather than fluctuating based on existing market conditions. FFO does not represent cash generated from operating activities and is not necessarily indicative of cash available to fund cash requirements and should not be considered as an alternative to net income as a performance measure or cash flows as a liquidity measure. FFO may not be comparable to similarly titled measures employed by other companies. A reconciliation of our net income to FFO is provided above. In addition to FFO, we also disclose FFO before certain items that affect comparability. Although this non-GAAP measure clearly differs from NAREIT's definition of FFO, we believe it provides a meaningful presentation of operating performance. A reconciliation of FFO to FFO as adjusted for comparability is provided on page 1 and page 2 of this press release.

Conference Call and Audio Webcast

As previously announced, the Company will host a quarterly earnings conference call and audio webcast on February 17, 2016 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 41695750. A telephonic replay of the conference call will be available from 1:00 p.m. ET on February 17, 2016 through March 18, 2016. To access the replay, please dial 888-843-7419 and enter the passcode 41695750#. 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 for 90 days following the conference call.

CONTACT:
Stephen Theriot
(201) 587-1000