Alexander's Inc. (NYSE:ALX) Q3 2018 Earnings Conference Call Transcript
Oct 30, 2018 • 10:00 am ET
Welcome to the Vornado Realty Trust Third Quarter 2018 Earnings Call. My name is Paulette, and I will be your operator for today's call. At this time, all participants are in a listen-only mode. Later, we will conduct a question and answer session. (Operator Instructions) Please note that this conference is being recorded.
I will now turn the call over to Cathy Creswell, Director of IR. You may begin.
Thank you. Welcome to Vornado Realty Trust third quarter earnings call. Yesterday afternoon, we issued our third quarter earnings release and filed our quarterly report on Form 10-Q with the Securities and Exchange Commission. These documents as well as our supplemental financial information package are available on our website, www.vno.com, under the IR section. In these documents and during today's call, we will discuss certain 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 supplement.
(Forward-Looking Cautionary Statements)
On the call today from management for our opening comments are: Steven Roth, Chairman of the Board and CEO; and David Greenbaum, President of the New York Division. Also in the room are Michael Franco, EVP and CIO; Joseph Macnow, EVP, CFO and Chief Administrative Officer; Mark Hudspeth, EVP and Head of Capital Markets; Matt Iocco, EVP and CAO; and Tom Sanelli, EVP and CFO, New York Division.
I will now turn the call over to Steven Roth.
Thanks, Cathy. Good morning, everyone. If I may, let me start by bragging a little bit. Our leasing numbers continue to be the best in the business. Year-to-date, for three quarters, across the entire business, including New York Office, retail, theMART and 555 California Street, our leasing activity totals over 2 million square feet and 179 leases with outstanding mark-to-markets of 33.8% GAAP and 24.1% cash, thanks to Glen and our best-in- the-business leasing team.
Yesterday, we posted third quarter numbers. Here's the math. FFO is adjusted with $0.97 per share, even with the prior year's third quarter. Our GAAP basis financial results for this quarter were negatively affected by $4.5 million, largely from non-cash straight-line rent receivable write-offs. These GAAP accounting items did not affect our cash basis results. Remember, we run the business on cash numbers. Our third quarter cash basis FFO as adjusted was $0.95 per share as compared to $0.89 per share for the prior year's third quarter, up a strong 6.7%.
This quarter's company-wide cash basis NOI was $340.9 million, up 2.7% from the third quarter of 2017. Adjusting for the sale of our half interest in the 666 Fifth Avenue Office Condominium, the increase was at even greater 3.8%. More about 666 in a minute.
Cash basis same-store NOI increased by 4.3%, comprised of: New York Office was up 5.1%; retail was up 4.2%, benefiting by a $4.9 million onetime real estate tax abatement catch-up with the total New York segment up 3.9%, theMART was up 2.2% and 555 California Street was up 19.9%. This