Vornado Realty Trust (NYSE:VNO) Q2 2016 Earnings Conference Call - Final Transcript

Aug 02, 2016 • 10:00 am ET


Vornado Realty Trust (NYSE:VNO) Q2 2016 Earnings Conference Call - Final Transcript


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Good morning, and welcome to the Vornado Realty Trust Second Quarter 2016 Earnings Call. My name is Brandon, and I will be your operator for today. [Operator Instructions].

I will not turn the call over to Ms. Cathy Creswell, Director of Investor relations. Please go ahead.

Cathy Creswell

Thank you. Welcome to Vornado Realty Trust Second Quarter Earnings Call. Yesterday afternoon we issued our second quarter earnings and filed our quarterly report for form 10-Q with the Securities and Exchange Commission. These documents as well as their supplemental financial information package are available on our website www.dno.com under the investor relations section. In today's documents and during today's call, we will discuss their non-GAAP financial measures, reconciliations of these measures to the most directly comparable GAAP measures are included in our earnings release form 10-Q and financial supplements.

Please be aware the statements made during this call may be deemed forward-looking statements and actual results may differ materially from these statements due to a variety of risks, uncertainties and other factors. Please refer to our filings with the Securities and Exchange Commission, including our form 10-K for more information regarding the risks and uncertainties, the call may include time sensitive information that may be accurate only as of today's date. This company does not undertake the duty to update any forward-looking statements.

On the call today from management for our opening comments are Steven Roth, Chairman of the Board and Chief Executive Officer; David Greenbaum, President of the New York Division; Mitchell Schear, President of the Washington, DC Division; and Stephen Theriot, Chief Financial Officer. Also in the room are Michael Franco, Executive Vice President and Chief Investment Officer; and Joseph Macnow, Executive Vice President and Chief Administrative Officer.

I will now turn the call over to Steven Roth.

Steven Roth

Thank you, Cathy. Good morning, everyone. Welcome to Vornado's second quarter call. Our New York business had a very strong second quarter. Business continues to be good, very good actually except for the hotel business which continues to head south our Hotel Pennsylvania included, suffering from gross oversupply and a little Airbnb. We continue to participate in the bidding process for Farley and Penn Station. Our vast holdings in the Penn Plaza district in the very center of the new Westside are the next big thing, actually really big thing for our Company.

We continue down the path of separating the Washington business. Development and progress in New York continues on pace. Our 220 Central Park South residential tower is selling well and is now up to the 57th floor and rising at the rate of one floor every four days. Our 60,000 square foot Victoria Secrets Flagship on Fifth Avenue is building towards a November opening. Construction of 61 Ninth Avenue which will be the new home of the 20,000 square foot Starbucks Roastery is in the foundation phase. Our highline project at 512 West 22nd Street is also underway and at 606 Broadway construction has begun.

In Washington and Pentagon City the