Quarter Ended September 30, 2025 Financial Results
NET INCOME attributable to common shareholders for the quarter ended September 30, 2025 was $11,589,000, or $0.06 per diluted share, compared to net loss attributable to common shareholders of $19,154,000, or $0.10 per diluted share, for the prior year's quarter.
FUNDS FROM OPERATIONS ("FFO") attributable to common shareholders plus assumed conversions (non-GAAP) for the quarter ended September 30, 2025 was $117,372,000, or $0.58 per diluted share, compared to $99,256,000, or $0.50 per diluted share, for the prior year's quarter. Adjusting for the items that impact period-to-period comparability listed in the table on the following page, FFO attributable to common shareholders plus assumed conversions, as adjusted (non-GAAP) for the quarter ended September 30, 2025 was $114,535,000, or $0.57 per diluted share, and $102,755,000, or $0.52 per diluted share, for the prior year's quarter.
Nine Months Ended September 30, 2025 Financial ResultsNET INCOME attributable to common shareholders for the nine months ended September 30, 2025 was $842,250,000, or $4.19 per diluted share, compared to $7,072,000, or $0.04 per diluted share, for the nine months ended September 30, 2024. The increase is primarily due to the $803,248,000 gain related to the 770 Broadway master lease with New York University ("NYU"), the $76,162,000 net gain recognized upon the disposition of a portion of the 666 Fifth condominium to UNIQLO, and the $17,240,000 reversal of PENN 1 rent expense previously accrued following the April 2025 rent reset determination (which is subject to the ongoing litigation described on page 4).
FFO attributable to common shareholders plus assumed conversions (non-GAAP) for the nine months ended September 30, 2025 was $373,482,000, or $1.86 per diluted share, compared to $352,914,000, or $1.79 per diluted share, for the nine months ended September 30, 2024. Adjusting for the items that impact period-to-period comparability listed in the table on the following page, FFO attributable to common shareholders plus assumed conversions, as adjusted (non-GAAP) for the nine months ended September 30, 2025 was $354,239,000, or $1.76 per diluted share, and $324,860,000, or $1.65 per diluted share, for the nine months ended September 30, 2024.
The following table reconciles FFO attributable to common shareholders plus assumed conversions (non-GAAP) to FFO attributable to common shareholders plus assumed conversions, as adjusted (non-GAAP):
(Amounts in thousands, except per share amounts)
For the Three Months EndedSeptember 30,
For the Nine Months EndedSeptember 30,
2025
2024
2025
2024
FFO attributable to common shareholders plus assumed conversions (non-GAAP)(1)
$
117,372
$
99,256
$
373,482
$
352,914
Per diluted share (non-GAAP)
$
0.58
$
0.50
$
1.86
$
1.79
Certain expense (income) items that impact FFO attributable to common shareholders plus assumed conversions:
Deferred tax liability on our investment in the Farley Building (held through a taxable REIT subsidiary)
$
3,586
$
4,164
$
10,128
$
10,897
After-tax net gain on sale of 220 Central Park South ("220 CPS") condominium units and ancillary amenities
—
—
(11,110
)
(13,069
)
Gain on sale of Canal Street condominium units
—
—
(10,337
)
—
Our share of the gain on the discounted extinguishment of the 280 Park Avenue mezzanine loan
—
—
—
(31,215
)
Other
(6,661
)
(365
)
(9,556
)
2,896
(3,075
)
3,799
(20,875
)
(30,491
)
Noncontrolling interests' share of above adjustments on a dilutive basis
238
(300
)
1,632
2,437
Total of certain (income) expense items that impact FFO attributable to common shareholders plus assumed conversions, net
$
(2,837
)
$
3,499
$
(19,243
)
$
(28,054
)
Per diluted share (non-GAAP)
$
(0.01
)
$
0.02
$
(0.10
)
$
(0.14
)
FFO attributable to common shareholders plus assumed conversions, as adjusted (non-GAAP)
$
114,535
$
102,755
$
354,239
$
324,860
Per diluted share (non-GAAP)
$
0.57
$
0.52
$
1.76
$
1.65
________________________________
(1)
See page 11 for a reconciliation of net income (loss) attributable to common shareholders to FFO attributable to common shareholders plus assumed conversions (non-GAAP) for the three and nine months ended September 30, 2025 and 2024
FFO, as Adjusted Bridge - Q3 2025 vs. Q3 2024
The following table bridges our FFO attributable to common shareholders plus assumed conversions, as adjusted (non-GAAP) for the three months ended September 30, 2024 to FFO attributable to common shareholders plus assumed conversions, as adjusted (non-GAAP) for the three months ended September 30, 2025:
(Amounts in millions, except per share amounts)
FFO, as Adjusted
Amount
Per Share
FFO attributable to common shareholders plus assumed conversions, as adjusted (non-GAAP) for the three months ended September 30, 2024
$
102.8
$
0.52
Increase / (decrease) in FFO, as adjusted due to:
Variable businesses (primarily signage)
7.3
Impact of NYU master lease at 770 Broadway
6.1
Asset sales
(4.5
)
Capitalized interest (primarily PENN 2)
(4.4
)
Rent commencements, net of lease expirations
2.6
Other, net
5.1
12.2
Noncontrolling interests' share of above items and impact of assumed conversions of convertible securities
(0.5
)
Net increase
11.7
0.05
FFO attributable to common shareholders plus assumed conversions, as adjusted (non-GAAP) for the three months ended September 30, 2025
$
114.5
$
0.57
See page 11 for a reconciliation of net income (loss) attributable to common shareholders to FFO attributable to common shareholders plus assumed conversions (non-GAAP) for the three and nine months ended September 30, 2025 and 2024. Reconciliations of FFO attributable to common shareholders plus assumed conversions to FFO attributable to common shareholders plus assumed conversions, as adjusted are provided above.
Acquisitions
623 Fifth Avenue
On September 4, 2025, we purchased the 623 Fifth Avenue office condominium, a 36-story, 383,000 square foot building situated above the flagship Saks Fifth Avenue department store, for $218,000,000. At closing, we borrowed $145,420,000 under our revolving credit facility to partially finance the acquisition. We intend to redevelop the asset into a premier, boutique office building. We expect to complete the redevelopment for delivery to tenants in 2027.
Investment in Loan
On July 24, 2025, we purchased a $35,000,000 A-Note secured by a Midtown Manhattan property at par. The A-Note accrues interest at 4.89% plus 4.00% default interest. We previously acquired the $50,000,000 B-Note secured by the property in August 2024. The A-Note, together with the B-Note, is in default.
Dispositions
512 West 22nd Street
On August 14, 2025, a joint venture, in which we have a 55.0% interest, completed the sale of 512 West 22nd Street, a 173,000 square foot office building, for $205,000,000. The joint venture used a portion of the proceeds to repay the $122,930,000 mortgage loan encumbering the property. We received net proceeds of $37,900,000 and recognized a financial statement net gain of $11,002,000, which is included in "income from partially owned entities" on our consolidated statements of income.
49 West 57th Street
On June 26, 2025, a joint venture, in which we own a 50.0% interest, completed the sale of the 49 West 57th Street commercial condominium. We received net proceeds of $8,650,000 and recognized a financial statement net gain of $2,527,000 which is included in "income from partially owned entities" on our consolidated statements of income.
220 Central Park South
During the nine months ended September 30, 2025, we closed on the sale of two condominium units and ancillary amenities at 220 CPS for net proceeds of $24,839,000, resulting in a financial statement net gain of $13,702,000 which is included in "net gains on disposition of wholly owned and partially owned assets" on our consolidated statements of income. In connection with these sales, $2,592,000 of income tax expense was recognized on our consolidated statements of income. Two units remain unsold.
Canal Street Condominium Units
During the nine months ended September 30, 2025, we closed on the sale of six residential condominium units at 304-306 Canal Street and 334 Canal Street for net proceeds of $21,633,000, resulting in a financial statement net gain of $10,337,000 which is included in "net gains on disposition of wholly owned and partially owned assets" on our consolidated statements of income. Two units remain unsold.
666 Fifth Avenue (Fifth Avenue and Times Square JV)
On January 8, 2025, the Fifth Avenue and Times Square JV completed the sale to UNIQLO of the portion of its U.S. flagship store at 666 Fifth Avenue owned by the joint venture for $350,000,000 and realized net proceeds of $342,000,000. The net proceeds were used to partially redeem Vornado's preferred equity on the asset. The joint venture continues to own 23,832 square feet of retail space (7,416 square feet at grade) at 666 Fifth Avenue consisting of the Abercrombie & Fitch and Tissot stores. We recognized a financial statement gain of $76,162,000, which is included in "income from partially owned entities" on our consolidated statements of income.
Financing Activity
650 Madison Avenue
In October 2025, a joint venture, in which we own a 20.1% interest, received a notice of default (the "Notice") on the $800,000,000 non-recourse mortgage loan secured by 650 Madison Avenue, a 601,000 square foot Manhattan office and retail property. The Notice asserts that the joint venture is in default under the loan agreement due to its failure to pay the full interest and reserve amounts due and owing under the loan agreement and that the joint venture's obligations are now immediately due and payable.
As previously announced in the fourth quarter of 2022, Vornado wrote off its entire investment in 650 Madison Avenue and accordingly carries this investment at zero on its balance sheet and, since then, no longer records its share of net income (loss) from this investment.
4 Union Square South
On August 12, 2025, we completed a $120,000,000 refinancing of 4 Union Square South, a 204,000 square foot Manhattan retail property. The 10-year interest-only loan matures in September 2035 and has a fixed rate of 5.64%. The loan replaces the previous $120,000,000 loan that bore interest at SOFR plus 1.50% and was scheduled to mature in August 2025.
Financing Activity - continued
Alexander's Inc. ("Alexander's")
On August 1, 2025, Alexander's, in which we own a 32.4% common equity interest, entered into a 60-day extension with the lenders on the $300,000,000 non-recourse mortgage loan encumbering the retail condominium of 731 Lexington Avenue. The loan was previously scheduled to mature on August 5, 2025. Alexander's did not repay the loan on the extended maturity date of October 3, 2025. Alexander's is in discussions with the lenders regarding a potential loan restructuring.
PENN 11
On July 16, 2025, we completed a $450,000,000 refinancing of PENN 11, a 1,200,000 square foot Manhattan office building. The five-year interest-only loan matures in August 2030 and has a fixed rate of 6.35%. We paid down by $50,000,000 the prior $500,000,000 loan that bore interest at a rate of SOFR plus 2.06% (swapped to an all-in fixed rate of 6.28%) and was scheduled to mature in October 2025. The swap was terminated at the time of refinancing, and we received $130,000 of proceeds.
Independence Plaza
On June 5, 2025, a joint venture, in which we have a 50.1% interest, completed a $675,000,000 refinancing of Independence Plaza, a 1,328 unit residential complex in the Tribeca submarket of Manhattan. The interest-only non-recourse loan bears interest at a fixed rate of 5.84% and matures in June 2030. The loan replaces the previous $675,000,000 non-recourse loan that was scheduled to mature in July 2025 and bore interest at 4.25%.
Sustainability Margin Adjustment
In April 2025, we qualified for a sustainability margin adjustment on our unsecured term loan and revolving credit facilities by achieving certain KPI metrics, which reduced our interest rate by 0.05% and 0.04%, respectively.
1535 Broadway (Fifth Avenue and Times Square JV)
On April 14, 2025, the Fifth Avenue and Times Square JV completed a $450,000,000 financing of 1535 Broadway. The interest-only non-recourse loan bears interest at a fixed rate of 6.90% and matures in May 2030. After transaction costs and reserves, $407,000,000 of the net proceeds from the financing were used to partially redeem Vornado's Fifth Avenue and Times Square JV preferred equity.
Senior Unsecured Notes due 2025
We repaid our $450,000,000 3.50% senior unsecured notes on their January 15, 2025 maturity date.
770 Broadway
On May 5, 2025, we completed a master lease with NYU to lease 1,076,000 square feet at 770 Broadway, on an "as is", triple net basis for a 70-year lease term. Under the terms of the master lease, a rental agreement under Section 467 of the Internal Revenue Code, NYU made a prepaid lease payment of $935,000,000, and will also make annual lease payments of $9,281,000 during the lease term. NYU has an option to purchase the leased premises in both 2055 and at the end of the lease term in 2095. NYU assumed the existing office leases at the property.
We used a portion of the prepaid lease payment to repay the $700,000,000 mortgage loan which previously encumbered the property.
We retained the 92,000 square feet retail condominium leased to Wegmans.
In connection with the transaction, we recorded a gain on sales-type lease of $803,248,000.
PENN 1 Ground Rent Reset Determination
On April 22, 2025, an arbitration panel (the "Panel") appointed to determine the ground rent payable by Vornado's subsidiary for the PENN 1 land parcel for the 25-year period beginning June 17, 2023 determined that the annual rent payable will be $15,000,000. On July 21, 2025, the ground lessor filed a motion in New York County Supreme Court to vacate the Panel's ground rent determination. On October 31, 2025, the court granted the ground lessor's motion. We believe the motion is without merit and intend to appeal the court's decision.
Further, litigation is currently pending between the parties in New York County Supreme Court regarding a separate point relating to the matter. The court denied our motion to dismiss that action and we are appealing that decision. The Panel's decision (which is subject to the aforementioned vacatur decision that we plan to appeal) provides that if the fee owner prevails in a final judgment in that litigation, the annual rent for the 25-year term will be $20,220,000, retroactive to June 17, 2023.
We were accruing $26,205,000 per annum of ground rent based on a previous estimate and therefore, in connection with the Panel's determination (which is subject to the ongoing litigation described above), we reversed $17,240,000 of previously accrued rent expense during the nine months ended September 30, 2025. Additionally, commencing in the first quarter of 2025, we are now paying based on the $15,000,000 annual rent.
Leasing Activity
The leasing activity and related statistics in the tables below are based on leases signed during the period and are not intended to coincide with the commencement of rental revenue in accordance with accounting principles generally accepted in the United States of America ("GAAP"). Second generation relet space represents square footage that has not been vacant for more than nine months and tenant improvements and leasing commissions are based on our share of square feet leased during the period.
(Square feet in thousands)
New York
555 California Street
Office
Retail
THE MART
Three Months Ended September 30, 2025
Total square feet leased
594
27
158
224
Our share of square feet leased:
542
23
158
157
Initial rent(1)
$
102.60
$
292.79
$
48.84
$
113.95
Weighted average lease term (years)
12.5
9.0
10.5
8.6
Second generation relet space:
Square feet
169
11
46
91
GAAP basis:
Straight-line rent(2)
$
81.15
$
255.36
$
50.16
$
137.13
Prior straight-line rent
$
70.16
$
171.86
$
49.08
$
106.72
Percentage increase
15.7
%
48.6
%
2.2
%
28.5
%
Cash basis (non-GAAP):
Initial rent(1)
$
84.28
$
233.25
$
52.57
$
135.30
Prior escalated rent
$
76.32
$
177.66
$
55.60
$
117.57
Percentage increase (decrease)
10.4
%
31.3
%
(5.4
)%
15.1
%
Tenant improvements and leasing commissions:
Per square foot
$
163.37
$
202.90
$
152.43
$
155.28
Per square foot per annum
$
13.07
$
22.54
$
14.52
$
18.06
Percentage of initial rent
12.7
%
7.7
%
29.7
%
15.8
%
________________________________See notes below.
(Square feet in thousands)
New York
555 California Street
Office(3)
Retail
THE MART
Nine Months Ended September 30, 2025
Total square feet leased
2,782
109
368
446
Our share of square feet leased:
2,641
89
368
312
Initial rent(1)
$
99.26
$
172.63
$
50.10
$
117.28
Weighted average lease term (years)
12.2
9.6
8.3
10.8
Second generation relet space:
Square feet
663
65
192
246
GAAP basis:
Straight-line rent(2)
$
86.76
$
130.95
$
47.74
$
133.94
Prior straight-line rent
$
77.55
$
107.27
$
49.24
$
108.97
Percentage increase (decrease)
11.9
%
22.1
%
(3.0
)%
22.9
%
Cash basis (non-GAAP):
Initial rent(1)
$
91.07
$
122.96
$
51.95
$
126.30
Prior escalated rent
$
84.10
$
109.34
$
55.69
$
117.44
Percentage increase (decrease)
8.3
%
12.5
%
(6.7
)%
7.5
%
Tenant improvements and leasing commissions:
Per square foot
$
149.78
$
154.78
$
103.56
$
192.27
Per square foot per annum
$
12.28
$
16.12
$
12.48
$
17.80
Percentage of initial rent
12.4
%
9.3
%
24.9
%
15.2
%
_______________________________
(1)
Represents the cash basis weighted average starting rent per square foot, which is generally indicative of market rents. Most leases include free rent and periodic step-ups in rent which are not included in the initial cash basis rent per square foot but are included in the GAAP basis straight-line rent per square foot.
(2)
Represents the GAAP basis weighted average rent per square foot that is recognized over the term of the respective leases and includes the effect of free rent and periodic step-ups in rent.
(3)
The leasing statistics other than square feet leased, exclude the impact of the 1,076 square foot master lease to NYU at 770 Broadway.
Occupancy
(At Vornado's share)
New York
THE MART
555 California Street
Total
Office
Retail
Occupancy as of September 30, 2025
87.5
%
88.4
%
79.2
%
(1)
80.7
%
96.3
%
________________________________
(1)
Reflects the impact of the 100 West 33rd Street retail space coming out of service during the third quarter of 2025.
Same Store Net Operating Income ("NOI") (non-GAAP) At Share:
Total
New York
THE MART(2)
555 California Street
Same store NOI at share % increase (decrease)(1):
Three months ended September 30, 2025 compared to September 30, 2024
7.5
%
9.1
%
(10.4
)%
3.8
%
Nine months ended September 30, 2025 compared to September 30, 2024
5.4
%
4.5
%
(3)
19.9
%
4.0
%
Three months ended September 30, 2025 compared to June 30, 2025
(3.4
)%
1.7
%
(46.9
)%
(5.4
)%
Same store NOI at share - cash basis % (decrease) increase(1):
Three months ended September 30, 2025 compared to September 30, 2024
(8.2
)%
(7.4
)%
(4)
(10.0
)%
(16.0
)%
(6)
Nine months ended September 30, 2025 compared to September 30, 2024
(4.6
)%
(6.2
)%
(4)(5)
20.4
%
(7.9
)%
(6)
Three months ended September 30, 2025 compared to June 30, 2025
(5.8
)%
(0.3
)%
(5)
(47.1
)%
(5.6
)%
________________________________
(1)
See pages 13 through 18 for same store NOI at share and same store NOI at share - cash basis reconciliations.
(2)
2025 includes the impact of a reversal of a prior period tax accrual resulting from a property tax reassessment.
(3)
Excludes the impact of the $17,240,000 reversal of previously accrued PENN 1 ground rent. See page 4 for further details.
(4)
Decrease in same store NOI at share - cash basis vs. GAAP basis is primarily due to (i) current period PENN 1 ground rent increase and (ii) GAAP rent commencing on new leases with free rent periods.
(5)
Excludes the impact of the April 2025 $22,361,000 true-up payment for prior period PENN 1 ground rent owed based on the recent rent reset determination (which is subject to the ongoing litigation described on page 4)
(6)
Decrease in same store NOI at share cash basis vs. GAAP basis is primarily due to GAAP rent commencing on new leases with free rent periods.
NOI At Share and NOI At Share - Cash Basis:
The elements of our New York and Other NOI at share and NOI at share - cash basis for the three and nine months ended September 30, 2025 and 2024 and the three months ended June 30, 2025 are summarized below.
(Amounts in thousands)
For the Three Months Ended
For the Nine Months EndedSeptember 30,
September 30,
June 30, 2025
2025
2024
2025
2024
NOI at share:
New York:
Office(1)(2)
$
171,128
$
167,051
$
173,104
$
535,733
$
513,377
Retail(3)
42,183
47,283
42,798
131,096
143,141
Residential
6,457
5,784
6,362
19,011
17,972
Alexander's
8,770
9,470
8,315
26,594
30,380
Total New York
228,538
229,588
230,579
712,434
704,870
Other:
THE MART(4)
13,275
14,972
25,197
54,388
45,518
555 California Street
17,293
15,780
18,686
53,822
49,109
Other investments
7,570
5,151
3,211
16,995
15,289
Total Other
38,138
35,903
47,094
125,205
109,916
NOI at share
$
266,676
$
265,491
$
277,673
$
837,639
$
814,786
NOI at share - cash basis:
New York:
Office(1)(5)
$
145,556
$
173,415
$
127,579
$
440,592
$
516,700
Retail(3)
37,536
44,095
39,692
120,955
132,668
Residential
5,989
5,527
5,990
17,827
17,164
Alexander's
9,509
10,424
9,344
29,391
35,557
Total New York
198,590
233,461
182,605
608,765
702,089
Other:
THE MART(4)
13,267
14,901
25,258
56,042
46,685
555 California Street
16,455
19,589
20,684
55,276
56,483
Other investments
7,618
4,347
3,172
16,937
14,244
Total Other
37,340
38,837
