Vornado Realty Trust (VNO) Q4 2023 earnings summary

Executive summary

• Q4 2023 net loss attributable to common shareholders was $61.0M, or $0.32 per diluted share; adjusted net income was $8.0M, or $0.04 per diluted share.

• Q4 FFO per diluted share was $0.62 reported and $0.63 adjusted; FY 2023 FFO per diluted share was $2.59 reported and $2.61 adjusted.

• FY 2023 net income attributable to common shareholders was $43.4M, or $0.23 per diluted share, versus a $408.6M net loss in FY 2022.

Financial highlights

• Q4 revenue was $441.9M versus $446.9M YoY; FY revenue was $1.811B versus $1.800B in 2022.

• FY adjusted net income was $51.3M, or $0.27 per diluted share, versus $126.5M, or $0.66, in 2022.

• FY adjusted FFO was $508.2M, or $2.61 per diluted share, versus $608.9M, or $3.15, in 2022.

• Q4 included $72.7M of real estate impairment losses, primarily from shortened hold-period assumptions.

Outlook and guidance

• 2024 common dividend policy anticipated one common-share dividend in Q4.

• Active projects totaled $975M at share, with $280.6M of remaining expenditures; PENN District is projected to stabilize in 2026 with a 9.5% incremental cash yield.

• Sunset Pier 94 Studios is budgeted at $125M at share, with a projected 10.3% incremental cash yield and 2026 stabilization.