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$VNO 2Q15 Q&A: Vincent of Deutsche asked about WeWork in DC. Steve said that the residential units of WeWork are going to deliver late this year or early next year and will be immediately in the market to reach them at that juncture. But as of yet they are not being marketed.
$VNO announced inclusion of certain items to its 4Q17 financial results. These inclusion will result in a reduction in EPS of $0.20, after noncontrolling interests. On an FFO basis, these aggregate to a reduction of $0.18 per share, after noncontrolling interests, which will be included in total FFO.
$VNO announced inclusion of certain items in its 4Q17 financial results. Those include tax expense related to reduction of REIT subsidiaries deferred tax assets resulting from Tax Cuts and Jobs Act, expense from prepayment of 2.50% senior unsecured notes due 2019, and loss from other items, including real estate fund.
$VNO called for redemption all of its $200MM outstanding 6.625% Series G Cumulative Redeemable Preferred Shares and $150MM of its $270MM outstanding 6.625% Series I Cumulative Redeemable Preferred Shares on Jan. 4, 2018. The company will incur a charge of $11.1MM in 1Q18 from the write-off of issuance costs relating to the shares being redeemed.
$VNO said Vornado Realty L.P., its operating partnership, has extended one of its two $1.25Bil unsecured revolving credit facilities from November 2018 to January 2022 with two 6-month extension options. The interest rate was lowered from LIBOR plus 105BP to LIBOR plus 100BP. The facility fee remains at 20BP.
$VNO reported net income attributable to common shareholders of $116MM or $0.61 per share in 2Q17 compared to $220.5MM or $1.16 per share for 2Q16. Adjusted net income was $82MM or $0.43 per share in 2Q17. Revenues grew to $626MM from last year.
$VNO closed the separation of JBG Smith Properties from its New York business and the combination of JBG Smith with the operating company and certain Washington, DC metropolitan area assets of The JBG Companies. $JBG Smith is now an independent public company that will being regular-way trading on the NYSE under $JBGS ticker.
$VNO has set July 7, 2017, as the record date for the spin-off of its subsidiary JBG Smith. Post spin-off, JBG will hold Vornado’s Washington DC business, which will be combined with the operating company and certain assets of The JBG Companies. JBG Smith will be a publicly-traded company listed on the NY Stock Exchange under the symbol ‘JBGS’.
$VNO declared dividends of $0.8125000 per share on its Series A Convertible preferred shares, $0.4140625 per share on Series G and I Cumulative Redeemable stock, $0.3562500 per share on Series K and $0.3375000 per share on Series L Cumulative Redeemable stock, payable July 3, 2017 to shareholders of record on June 15, 2017.
$VNO said that the effect of new Trump administration's financial services deregulation could have a significant and positive economic impact for New York. The company expects employment in financial services employment to increase in New York with important implications for the real estate market.
$VNO said its CFO Stephen Theriot will transfer to Washington DC to become CFO of JBG SMITH Properties, effective Feb. 15, 2017. Joseph Macnow, EVP - Finance and CAO, will return as CFO on an interim basis, also effective Feb. 15, 2017. Matthew Iocco will also now serve as $VNO's Principal Accounting Officer for SEC reporting purposes.
$VNO said its CFO Stephen Theriot will transfer to Washington DC to become CFO of JBG SMITH Properties, effective Feb. 15, 2017. JBG SMITH will be a new publicly-traded company following the spin-off of $VNO's Washington, DC business and its combination with the JBG Companies. Vornado shareholders will own about 74% of JBG SMITH.
Real estate investment trust $VNO reported higher 4Q16 earnings, helped by gain from sale of assets. Net income attributable to Vornado rose 165.75% to $667.31MM, or $3.43 per share from $251.1MM or $1.22 per share a year ago. Revenue declined 2% to $638.26MM. FFO for 4Q16 rose to $797.7MM from $259.5MM in 4Q15.