Vornado Realty Trust Reports Mixed Results for Q3 2024, Decline in Revenues and Net Income

As of September 30, 2024, Vornado Realty Trust reported total real estate at cost of $14.03 billion, an increase from $13.80 billion at the end of 2023. However, cash and cash equivalents decreased significantly from $997.00 million to $783.60 million during the same period. The company also saw a rise in redeemable noncontrolling interests in Class A units, which increased from $480.25 million to $670.41 million, reflecting a growing interest in its partnership units.

For the third quarter of 2024, Vornado's rental revenues totaled $387.47 million, down from $400.37 million in the same quarter of 2023. Total revenues for the quarter were $443.26 million, a slight decline from $450.99 million year-over-year. Total expenses increased to $392.72 million from $382.37 million, leading to a net loss of $19.47 million, a stark contrast to the net income of $59.57 million reported in Q3 2023. This trend continued for the nine-month period, with net income dropping to $14.36 million from $133.50 million in the previous year.

The decline in revenues was attributed primarily to same-store operations, which saw a decrease of $23.13 million. Additionally, the company reported a decrease in funds from operations (FFO) attributable to common shareholders, which fell to $99.26 million ($0.50 per diluted share) from $119.49 million ($0.62 per diluted share) in the prior year.

Vornado's net cash provided by operating activities for the nine months ended September 30, 2024, was $331.54 million, down from $436.88 million in 2023. The company also reported a significant increase in net cash used in investing activities, totaling $(487.08 million) compared to a positive cash flow of $65.80 million in the same period last year.

Strategically, Vornado has been active in its joint ventures, including a refinancing of properties and the sale of condominium units at 220 Central Park South, which generated $31.61 million in proceeds. The company also extended a $915 million unsecured revolving credit facility to April 2029, replacing a previous facility due in 2026.

As of September 30, 2024, Vornado's total debt stood at $8.28 billion, with a mix of fixed and variable rate debt. The company continues to manage its financial instruments to mitigate interest rate fluctuations, reflecting a proactive approach to its capital structure amidst changing market conditions.