GlobeNewswire Inc | Feb 16, 2021 04:21PM EST

February 16, 2021

NEW YORK, Feb. 16, 2021 (GLOBE NEWSWIRE) -- Vornado Realty Trust (NYSE: VNO) reported today:

Quarter Ended December 31, 2020 Financial Results

NET LOSS attributable to common shareholders for the quarter ended December 31, 2020 was $209,127,000, or $1.09 per diluted share, compared to net income attributable to common shareholders of $193,217,000, or $1.01 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, net income attributable to common shareholders, as adjusted (non-GAAP) for the quarter ended December 31, 2020 and 2019 was $957,000 and $56,381,000, or $0.01 and $0.29 per diluted share, respectively.

FUNDS FROM OPERATIONS ("FFO") attributable to common shareholders plus assumed conversions (non-GAAP) for the quarter ended December 31, 2020 was $138,399,000, or $0.72 per diluted share, compared to $311,876,000, or $1.63 per diluted share, for the prior year's quarter.Adjusting for the items that impact period-to-period comparability listed in the table on page 3, FFO attributable to common shareholders plus assumed conversions, as adjusted (non-GAAP) for the quarters ended December 31, 2020 and 2019 was $127,217,000 and $171,030,000, or $0.66 and $0.89 per diluted share, respectively.

Year Ended December 31, 2020 Financial Results

NET LOSS attributable to common shareholders for the year ended December 31, 2020 was $348,744,000, or $1.83 per diluted share, compared to net income attributable to common shareholders of$3.098 billion, or $16.21 per diluted share, for the year ended December 31, 2019. Adjusting for the items that impact period-to-period comparability listed in the table on the following page, net loss attributable to common shareholders, as adjusted (non-GAAP) for the year ended December 31, 2020 was $6,907,000, or $0.04 per diluted share, and net income attributable to common shareholders, as adjusted for the year ended December 31, 2019 was $176,716,000, or $0.92 per diluted share.

FFO attributable to common shareholders plus assumed conversions (non-GAAP) for the year ended December 31, 2020 was $750,522,000, or $3.93 per diluted share, compared to $1.003 billion, or $5.25 per diluted share, for the year ended December 31, 2019. Adjusting for the items that impact period-to-period comparability listed in the table on page 3, FFO attributable to common shareholders plus assumed conversions, as adjusted (non-GAAP) for the years ended December 31, 2020 and 2019 was $483,044,000 and $666,207,000, or $2.53 and $3.49 per diluted share, respectively.

The following table reconciles our net (loss) income attributable to common shareholders to net income (loss) attributable to common shareholders, as adjusted (non-GAAP):

(Amounts in For the Three Months Ended For the Year Endedthousands, except December 31, December 31,per share amounts) 2020 2019 2020 2019Net (loss) incomeattributable to $ (209,127 ) $ 193,217 $ (348,744 ) $ 3,097,806 common shareholdersPer diluted share $ (1.09 ) $ 1.01 $ (1.83 ) $ 16.21 Certain expense(income) items thatimpact net (loss) income attributableto commonshareholders:Real estateimpairment losses(primarily wholly $ 236,286 $ 565 $ 236,286 $ 8,065 owned retail assetsin 2020)After-tax net gainon sale of 220Central Park South (36,274 ) (173,655 ) (332,099 ) (502,565 )("220 CPS")condominium unitsSeverance and otherreduction-in-force 23,368 ? 23,368 ? related expensesTransaction related 5,456 2,658 7,150 4,613 costsOur share of(income) loss from (1,657 ) 26,600 63,114 48,808 real estate fundinvestmentsMark-to-marketdecrease inPennsylvania RealEstate InvestmentTrust ("PREIT")common shares ? 2,438 4,938 21,649 (accounted for as amarketable securityfrom March 12, 2019and sold on January23, 2020)Non-cash impairmentloss on ourinvestment in FifthAvenue and TimesSquare JV,reversing a portionof the $2.559billion gain ? ? 409,060 ? recognized on theApril 2019 transferto the JointVentureattributable to theGAAP requiredwrite-up of theretained interest608 Fifth Avenuelease liabilityextinguishment gainin 2020 and ? ? (70,260 ) 101,092 impairment loss andrelated write-offsin 2019Credit losses onloans receivableresulting from a ? ? 13,369 ? new GAAP accountingstandard effectiveJanuary 1, 2020Severance accrualrelated to HotelPennsylvania ? ? 6,101 ? closure, net of$3,145 of incometax benefitNet gain ontransfer to FifthAvenue and TimesSquare retail JV, ? ? ? (2,559,154 )net of $11,945attributable tononcontrollinginterestsNet gains on saleof real estate(primarily our 25% ? ? ? (178,769 )interest in 330Madison Avenue in2019)Net gain from saleof Urban EdgeProperties ("UE") ? ? ? (62,395 )common shares (soldon March 4, 2019)Prepayment penaltyin connection withredemption of $400million 5.00% ? ? ? 22,540 senior unsecurednotes due January2022Mark-to-marketincrease inLexington Realty ? ? ? (16,068 )Trust common shares(sold on March 1,2019)Other (3,551 ) (4,692 ) 5,436 (7,505 ) 223,628 (146,086 ) 366,463 (3,119,689 )Noncontrollinginterests' share of (13,544 ) 9,250 (24,626 ) 198,599 above adjustmentsTotal of certainexpense (income)items that impact $ 210,084 $ (136,836 ) $ 341,837 $ (2,921,090 )net (loss) incomeattributable tocommon shareholders Net income (loss)attributable tocommon $ 957 $ 56,381 $ (6,907 ) $ 176,716 shareholders, asadjusted (non-GAAP)Per diluted share $ 0.01 $ 0.29 $ (0.04 ) $ 0.92 (non-GAAP)

The following table reconciles our 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 For the Three Months Ended For the Year Endedthousands, except per December 31, December 31,share amounts) 2020 2019 2020 2019FFO attributable tocommon shareholdersplus assumed $ 138,399 $ 311,876 $ 750,522 $ 1,003,398 conversions(non-GAAP)^(1)Per diluted share $ 0.72 $ 1.63 $ 3.93 $ 5.25 (non-GAAP) Certain (income)expense items thatimpact FFOattributable to common shareholdersplus assumedconversions:After-tax net gain onsale of 220 CPS $ (36,274 ) $ (173,655 ) $ (332,099 ) $ (502,565 )condominium unitsSeverance and otherreduction-in-force 23,368 ? 23,368 ? related expensesTransaction related 5,456 2,658 7,150 4,613 costsOur share of (income)loss from real estate (1,657 ) 26,600 63,114 48,808 fund investments608 Fifth Avenuelease liabilityextinguishment gainin 2020 and ? ? (70,260 ) 77,156 impairment loss andrelated write-offs in2019Credit losses onloans receivableresulting from a new ? ? 13,369 ? GAAP accountingstandard effectiveJanuary 1, 2020Severance accrualrelated to HotelPennsylvania closure, ? ? 6,101 ? net of $3,145 ofincome tax benefitPrepayment penalty inconnection withredemption of $400 ? ? ? 22,540 million 5.00% seniorunsecured notes dueJanuary 2022Other (2,841 ) (5,845 ) 2,510 (10,732 ) (11,948 ) (150,242 ) (286,747 ) (360,180 )Noncontrollinginterests' share of 766 9,396 19,269 22,989 above adjustmentsTotal of certain(income) expenseitems that impact FFOattributable to $ (11,182 ) $ (140,846 ) $ (267,478 ) $ (337,191 )common shareholdersplus assumedconversions, net FFO attributable tocommon shareholdersplus assumed $ 127,217 $ 171,030 $ 483,044 $ 666,207 conversions, asadjusted (non-GAAP)Per diluted share $ 0.66 $ 0.89 $ 2.53 $ 3.49 (non-GAAP)

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See page 14 for a reconciliation of our net (loss) income attributable(1) to common shareholders to FFO attributable to common shareholders plus assumed conversions (non-GAAP) for the three months and years ended December 31, 2020 and 2019.

COVID-19 Pandemic

Our business has been adversely affected as a result of the COVID-19 pandemic and the preventive measures taken to curb the spread of the virus. Some of the effects on us include the following:

-- With the exception of grocery stores and other "essential" businesses, many of our retail tenants closed their stores in March 2020 and began reopening when New York City entered phase two of its reopening plan on June 22, 2020, however, there continue to be limitations on occupancy and other restrictions that affect their ability to resume full operations. -- While our buildings remain open, many of our office tenants are working remotely. -- We have closed the Hotel Pennsylvania. In connection with the closure, we accrued $9,246,000 of severance for furloughed Hotel Pennsylvania union employees and recognized a corresponding $3,145,000 income tax benefit for the year ended December 31, 2020. -- We cancelled trade shows at theMART from late March through the remainder of 2020 and expect to resume in 2021. -- Because certain of our development projects were deemed "non-essential," they were temporarily paused in March 2020 due to New York State executive orders and resumed once New York City entered phase one of its state mandated reopening plan on June 8, 2020. -- As of April 30, 2020, we placed 1,803 employees on furlough, which included 1,293 employees of Building Maintenance Services LLC ("BMS"), 414 employees at the Hotel Pennsylvania and 96 corporate staff employees. As of February 10, 2021, 50% of furloughed employees have returned to work. The remaining employees still on furlough are from BMS and the Hotel Pennsylvania. -- Effective April 1, 2020, our executive officers waived portions of their annual base salary for the remainder of 2020. -- Effective April 1, 2020, each non-management member of our Board of Trustees agreed to forgo their $75,000 annual cash retainer for the remainder of 2020.

While we believe our tenants are required to pay rent under their leases and we have commenced legal proceedings against certain tenants that have failed to pay rent under their leases, in limited circumstances, we have agreed to and may continue to agree to rent deferrals and rent abatements for certain of our tenants. We have made a policy election in accordance with the Financial Accounting Standards Board (FASB) Staff Q&A which provides relief in accounting for leases during the COVID-19 pandemic, allowing us to continue recognizing rental revenue on a straight-line basis for rent deferrals, with no impact to revenue recognition, and to recognize rent abatements as a reduction to rental revenue in the period granted.

For the quarter ended December 31, 2020, we collected 95% (97% including rent deferrals) of rent due from our tenants, comprised of 97% (99% including rent deferrals) from our office tenants and 88% (89% including rent deferrals) from our retail tenants. Rent deferrals generally require repayment in monthly installments over a period not to exceed twelve months.

Based on our assessment of the probability of rent collection of our lease receivables, we have written off $1,401,000 and $51,571,000 of receivables arising from the straight-lining of rents for the three and twelve months ended December 31, 2020, respectively, including the JCPenney retail lease at Manhattan Mall and the New York & Company, Inc. office lease at 330 West 34th Street. Both tenants have filed for Chapter 11 bankruptcy and rejected their leases during 2020. In addition, we have written off $1,360,000 and $22,546,000 of tenant receivables deemed uncollectible for the three and twelve months ended December 31, 2020, respectively. These write-offs resulted in a reduction of lease revenues and our share of income from partially owned entities. Prospectively, revenue recognition for tenant receivables deemed uncollectible will be based on actual amounts received.

In light of the evolving health, social, economic, and business environment, governmental regulation or mandates, and business disruptions that have occurred and may continue to occur, the impact of the COVID-19 pandemic on our financial condition and operating results remains highly uncertain but has been and may continue to be material. The impact on us includes lower rental income and potentially lower occupancy levels at our properties which will result in less cash flow available for operating costs, to pay our indebtedness and for distribution to our shareholders. During 2020, we experienced a decrease in cash flow from operations due to the COVID-19 pandemic, including reduced collections of rents billed to certain of our tenants, the closure of Hotel Pennsylvania, the cancellation of trade shows at theMART, and lower revenues from BMS and signage. In addition, we recognized $409,060,000 of non-cash impairment losses, net of noncontrolling interests, related to our investment in Fifth Avenue and Times Square JV which are included in (loss) income from partially owned entities and $236,286,000 of non-cash impairment losses primarily on wholly owned retail assets which are included in impairment losses and transaction related costs, net on our consolidated statements of income for the year ended December 31, 2020. The value of our real estate assets may continue to decline, which may result in additional non-cash impairment charges in future periods and that impact could be material.

FFO, as Adjusted Bridge - Q4 2020 vs. Q4 2019

The following table bridges our FFO attributable to common shareholders plus assumed conversions, as adjusted (non-GAAP) for the three months ended December 31, 2019 to FFO attributable to common shareholders plus assumed conversions, as adjusted (non-GAAP) for the three months ended December 31, 2020:

(Amounts in millions, except per share amounts) FFO, as Adjusted Amount Per ShareFFO attributable to common shareholders plus assumedconversions, as adjusted (non-GAAP) for the three $ 171.0 $ 0.89 months ended December 31, 2019 (Decrease) increase in FFO, as adjusted due to: Variable businesses: Hotel Pennsylvania closed since April 1, 2020 (13.6 ) Signage (6.1 ) Trade shows (1.7 ) Garages (1.6 ) BMS (1.4 ) (24.4 ) Tenant related items (inclusive of $4.8 decrease fromJCPenney, $2.5 decrease from New York and Company, (18.9 ) Inc. and $3.6 Ballast Point lease termination incomein 2019)PENN District out of service for redevelopment (9.4 ) Interest expense decrease (partially offset by lower 6.2 capitalized interest) and other, net (46.5 ) Noncontrolling interests' share of above items 2.7 Net decrease (43.8 ) (0.23 ) FFO attributable to common shareholders plus assumedconversions, as adjusted (non-GAAP) for the three $ 127.2 $ 0.66 months ended December 31, 2020

See page 14 for reconciliations of our net (loss) income attributable to common shareholders to FFO attributable to common shareholders plus assumed conversions (non-GAAP) for the three months and years ended December 31, 2020 and 2019. Reconciliations of FFO attributable to common shareholders plus assumed conversions to FFO attributable to common shareholders plus assumed conversions, as adjusted are provided on page 3 of this press release.

Dispositions:

PREIT

On January 23, 2020, we sold all of our 6,250,000 common shares of PREIT, realizing net proceeds of $28,375,000. We recorded a $4,938,000 loss (mark-to-market decrease) for the year ended December 31, 2020.

220 CPS

During the three months ended December 31, 2020, we closed on the sale of 5 condominium units at 220 CPS for net proceeds of $110,068,000 resulting in a financial statement net gain of $42,458,000 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, $6,184,000 of income tax expense was recognized on our consolidated statements of income. During the year ended December 31, 2020, we closed on the sale of 35 condominium units at 220 CPS for net proceeds of $1,049,360,000 resulting in a financial statement net gain of $381,320,000 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, $49,221,000 of income tax expense was recognized on our consolidated statements of income. From inception to December 31, 2020, we have closed on the sale of 100 units for net proceeds of $2,869,492,000 resulting in financial statement net gains of $1,066,937,000.

Financings

On February 28, 2020, we increased our unsecured term loan balance to $800,000,000 (from $750,000,000) by exercising an accordion feature. Pursuant to an existing swap agreement, $750,000,000 of the loan bears interest at a fixed rate of 3.87% through October 2023, and the balance of $50,000,000 floats at a rate of LIBOR plus 1.00% (1.15% as of December 31, 2020). The entire $800,000,000 will float thereafter for the duration of the loan through February 2024.

On August 12, 2020, we amended the $700,000,000 mortgage loan on 770 Broadway, a 1.2million square foot Manhattan office building, to extend the term one year through March 2022.

On September 14, 2020, Alexander's, Inc. (NYSE: ALX) ("Alexander's"), in which we have a 32.4% ownership interest, amended and extended the $350,000,000 mortgage loan on the retail condominium of 731 Lexington Avenue. Under the terms of the amendment, Alexander's paid down the loan by $50,000,000 to $300,000,000, extended the maturity date to August 2025 and guaranteed the interest payments and certain leasing costs. The principal of the loan is non-recourse to Alexander's. The interest-only loan is at LIBOR plus 1.40% (1.55% as of December 31, 2020) which has been swapped to a fixed rate of 1.72%.

On October 15, 2020, we completed a $500,000,000 refinancing of PENN11, a 1.2million square foot Manhattan office building. The interest-only loan carries a rate of LIBOR plus 2.75% (2.90% as of December 31, 2020) and matures in October 2025, as fully extended. The loan replaces the previous $450,000,000 loan that bore interest at a fixed rate of 3.95% and was scheduled to mature in December 2020.

On October 23, 2020, Alexander's completed a $94,000,000 financing of The Alexander, a 312-unit residential building that is part of Alexander's residential and retail complex located in Rego Park, Queens, New York. The interest-only loan has a fixed rate of 2.63% and matures in November 2027.

On November 2, 2020, we repaid the $52,476,000 mortgage loan on our land under a portion of the Borgata Hotel and Casino complex. The 10-year fixed rate amortizing loan bore interest at 5.14% and was scheduled to mature in February 2021.

On November 24, 2020, Vornado sold 12,000,000 5.25% Series N cumulative redeemable preferred shares at a price of $25.00 per share, pursuant to an effective registration statement. Vornado received aggregate net proceeds of $291,182,000, after underwriters' discount and issuance costs and contributed the net proceeds to the Operating Partnership in exchange for 12,000,000 5.25% Series N preferred units (with economic terms that mirror those of the Series N preferred shares). Dividends on the Series N preferred shares/units are cumulative and payable quarterly in arrears. The Series N preferred shares/units are not convertible into, or exchangeable for, any of our properties or securities. On or after five years from the date of issuance (or sooner under limited circumstances), Vornado may redeem the Series N preferred shares/units at a redemption price of $25.00 per share, plus accrued and unpaid dividends through the date of redemption. The Series N preferred shares/units have no maturity date and will remain outstanding indefinitely unless redeemed by Vornado.

Leasing Activity For The Three Months Ended December 31, 2020:

-- 163,000 square feet of New York Office space (144,000 square feet at share) at an initial rent of $75.55 per square foot and a weighted average lease term of 8.5 years. The changes in the GAAP and cash mark-to-market rent on the 122,000 square feet of second generation space were positive 4.7% and 0.5%, respectively. Tenant improvements and leasing commissions were $6.90 per square foot per annum, or 9.1% of initial rent. -- 175,000 square feet of New York Retail space (125,000 square feet at share) at an initial rent of $75.82 per square foot and a weighted average lease term of 2.8 years.The changes in the GAAP and cash mark-to-market rent on the 117,000 square feet of second generation space were negative 19.1% and 21.6%, respectively. Tenant improvements and leasing commissions were $8.63 per square foot per annum, or 11.4% of initial rent. -- 62,000 square feet at theMART (all at share) at an initial rent of $47.80 per square foot and a weighted average lease term of 7.0 years.The changes in the GAAP and cash mark-to-market rent on the 62,000 square feet of second generation space were positive 1.5% and negative 3.5%, respectively. Tenant improvements and leasing commissions were $1.61 per square foot per annum, or 3.4% of initial rent. -- 271,000 square feet at 555 California Street (190,000 square feet at share), at an initial rent of $106.36 per square foot and a weighted average lease term of 9.2 years. The initial rent of $106.36 excludes the rent on a ten-year renewal option for 247,000 square feet (173,000 square feet at share) as the starting rent for this space will be determined in 2024 based on fair market value. The changes in the GAAP and cash mark-to-market rent on the 17,000 square feet of second generation space were positive 6.8% and negative 0.7%, respectively. Tenant improvements and leasing commissions were $2.95 per square foot per annum, or 2.8% of initial rent, excluding the ten-year renewal option for 247,000 square feet (173,000 square feet at share).

Leasing Activity For The Year Ended December 31, 2020:

-- 2,231,000 square feet of New York Office space (1,853,000 square feet at share) at an initial rent of $89.33 per square foot and a weighted average lease term of 14.4 years. Includes 730,000 square feet (694,000 at our share) for the new Facebook lease at Farley Office and 633,000 square feet (348,000 at our share) for the New York University long-term renewal at One Park Avenue. The initial rent of $89.33 excludes the rent on 174,000 square feet (all at share) as the starting rent for this space will be determined later in 2021 based on fair market value.The changes in the GAAP and cash mark-to-market rent on the 899,000 square feet of second generation space were positive 11.0% and 4.6%, respectively. Tenant improvements and leasing commissions were $8.75 per square foot per annum, or 9.8% of initial rent. -- 238,000 square feet of New York Retail space (184,000 square feet at share) at an initial rent of $136.29 per square foot and a weighted average lease term of 4.0 years.The changes in the GAAP and cash mark-to-market rent on the 159,000 square feet of second generation space were positive 1.3% and negative 5.9%, respectively. Tenant improvements and leasing commissions were $16.80 per square foot per annum, or 12.3% of initial rent. -- 379,000 square feet at theMART (all at share) at an initial rent of $49.74 per square foot and a weighted average lease term of 8.5 years.The changes in the GAAP and cash mark-to-market rent on the 374,000 square feet of second generation space were positive 1.5% and negative 1.9%, respectively. Tenant improvements and leasing commissions were $3.89 per square foot per annum, or 7.8% of initial rent. -- 371,000 square feet at 555 California Street (260,000 square feet at share) at an initial rent of $108.92 per square foot and a weighted average lease term of 8.0 years.The initial rent of $108.92 excludes the rent on a ten-year renewal option for 247,000 square feet (173,000 square feet at share) as the starting rent for this space will be determined in 2024 based on fair market value. The changes in the GAAP and cash mark-to-market rent on the 87,000 square feet of second generation space were positive 54.7% and 39.7%, respectively. Tenant improvements and leasing commissions were $6.94 per square foot per annum, or 6.4% of initial rent, excluding the ten-year renewal option for 247,000 square feet (173,000 square feet at share).

Same Store Net Operating Income ("NOI") At Share:

The percentage (decrease) increase in same store NOI at share and same store NOI at share - cash basis of our New York segment, theMART and 555 California Street are summarized below.

555 Total New York theMART California StreetSame store NOI at share% (decrease) increase^ (1):Three months endedDecember 31, 2020 (11.3 ) % (10.8 ) % (24.2 ) % 0.2 %compared to December31, 2019Year ended December 31,2020 compared to (13.8 ) % (12.7 ) % (32.5 ) % 0.6 %December 31, 2019Three months endedDecember 31, 2020 6.4 % 5.9 % 30.8 % (6.6 ) %compared to September30, 2020Same store NOI at share- cash basis % (decrease) increase^(1):Three months endedDecember 31, 2020 (10.2 ) % (9.4 ) % (26.1 ) % 3.1 %compared to December31, 2019Year ended December 31,2020 compared to (8.3 ) % (6.3 ) % (29.5 ) % 0.9 %December 31, 2019Three months endedDecember 31, 2020 1.4 % 1.7 % 2.8 % (3.8 ) %compared to September30, 2020

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(1) See pages 16 through 21 for same store NOI at share and same store NOI at share - cash basis reconciliations.

NOI At Share:

The elements of our New York and Other NOI at share for the three months and years ended December 31, 2020 and 2019 and the three months ended September 30, 2020 are summarized below.

(Amounts in For the Three Months Ended For the Year Endedthousands) December 31, December 31, 2020 2019 September 30, 2020 2019 2020New York: Office^(1) $ 167,865 $ 183,925 $ 159,981 $ 672,495 $ 724,526 (2)Retail^(1) 38,146 59,728 35,294 147,299 273,217 (3)Residential 4,083 5,835 4,536 20,687 23,363 Alexander's^ 10,259 10,626 6,830 35,912 44,325 (4)HotelPennsylvania (7,809 ) 6,170 (16,821 ) (42,502 ) 7,397 ^(^5^)Total New 212,544 266,284 189,820 833,891 1,072,828 York Other: theMART^(^6^ 17,091 22,712 13,171 69,178 102,071 )555California 14,638 14,533 15,618 60,324 59,657 StreetOtherinvestments^ 4,220 2,037 1,924 9,186 25,221 (^7^)Total Other 35,949 39,282 30,713 138,688 186,949 NOI at share $ 248,493 $ 305,566 $ 220,533 $ 972,579 $ 1,259,777

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(1) Reflects the transfer of 45.4% of common equity in the properties contributed to Fifth Avenue and Times Square JV on April 18, 2019. Includes the impact of non-cash write-offs of receivables arising from the straight-lining of rents, including the New York & Company, Inc. lease at 330 West 34th Street, of $585, $4,368 and $18,173,(2) respectively, for the three months ended December 31, 2020 and September 30, 2020 and the year ended December 31, 2020. In addition, includes the impact of write-offs of tenant receivables deemed uncollectible of $650, $5,112 and $6,702, respectively, for the three months ended December 31, 2020 and September 30, 2020 and the year ended December 31, 2020. Includes the impact of non-cash write-offs of receivables arising from the straight-lining of rents, including the JCPenney lease at Manhattan Mall, of $752, $4,688 and $25,876, respectively, for the three months ended December 31, 2020 and September 30, 2020 and the year ended(3) December 31, 2020. In addition, includes the impact of write-offs of tenant receivables deemed uncollectible of $618, $4,668 and $12,017, respectively, for the three months ended December 31, 2020 and September 30, 2020 and the year ended December 31, 2020. The year ended December 31, 2019 includes $14,010 of non-cash write-offs of receivables arising from the straight-lining of rents. The year ended December 31, 2020 includes $3,511 of non-cash write-offs(4) of receivables arising from the straight-lining of rents and $1,335 of write-offs of tenant receivables deemed uncollectible. The Hotel Pennsylvania has been closed since April 1, 2020 as a result(5) of the COVID-19 pandemic. The three months ended September 30, 2020 and year ended December 31, 2020 include a $9,246 severance accrual for furloughed union employees. The decrease in NOI at share is primarily due to the effects of the COVID-19 pandemic, causing trade shows to be cancelled from late March(6) 2020 through the remainder of the year. Additionally, the year ended December 31, 2020 includes $2,722 of non-cash write-offs of receivables arising from the straight-lining of rents and $1,742 of write-offs of tenant receivables deemed uncollectible. 2019 includes our share of PREIT (accounted for as a marketable security(7) from March 12, 2019 and sold on January 23, 2020) and UE (sold on March 4, 2019).

NOI At Share - Cash Basis:

The elements of our New York and Other NOI at share - cash basis for the three months and years ended December 31, 2020 and 2019 and the three months ended September 30, 2020 are summarized below.

(Amounts in For the Three Months Ended For the Year Endedthousands) December 31, December 31, 2020 2019 September 30, 2020 2019 2020New York: Office^(1) $ 166,925 $ 180,762 $ 162,357 $ 691,755 $ 718,734 (2)Retail^(1) 34,256 54,357 36,476 158,686 267,655 (3)Residential 3,828 5,763 4,178 19,369 21,894 Alexander's^ 11,163 10,773 9,899 42,737 45,093 (4)HotelPennsylvania (7,223 ) 6,052 (16,829 ) (41,941 ) 7,134 ^(^5^)Total New 208,949 257,707 196,081 870,606 1,060,510 York Other: theMART^(^6^ 18,075 24,646 17,706 76,251 108,130 )555California 14,947 14,491 15,530 60,917 60,156 StreetOtherinvestments^ 4,521 2,132 2,197 11,051 24,921 (^7^)Total Other 37,543 41,269 35,433 148,219 193,207 NOI at share $ 246,492 $ 298,976 $ 231,514 $ 1,018,825 $ 1,253,717 - cash basis

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(1) Reflects the transfer of 45.4% of common equity in the properties contributed to Fifth Avenue and Times Square JV on April 18, 2019. Includes the impact of write-offs of tenant receivables deemed(2) uncollectible of $650, $5,112 and $6,702, respectively, for the three months ended December 31, 2020 and September 30, 2020 and the year ended December 31, 2020. Includes the impact of write-offs of tenant receivables deemed(3) uncollectible of $618, $4,668 and $12,017, respectively, for the three months ended December 31, 2020 and September 30, 2020 and the year ended December 31, 2020.(4) The year ended December 31, 2020 includes $1,335 of write-offs of tenant receivables deemed uncollectible. The Hotel Pennsylvania has been closed since April 1, 2020 as a result(5) of the COVID-19 pandemic. The three months ended September 30, 2020 and year ended December 31, 2020 include a $9,246 severance accrual for furloughed union employees. The decrease in NOI at share - cash basis is primarily due to the effects of the COVID-19 pandemic, causing trade shows to be cancelled(6) from late March 2020 through the remainder of the year. Additionally, the year ended December 31, 2020 includes $1,742 of write-offs of tenant receivables deemed uncollectible. 2019 includes our share of PREIT (accounted for as a marketable security(7) from March 12, 2019 and sold on January 23, 2020) and UE (sold on March 4, 2019).

Penn District - Active Development/Redevelopment Summary as of December 31, 2020

(Amounts in thousandsof dollars, except square feet) Active Penn Property Amount Remainder to Stabilization ProjectedDistrict Segment Rentable Budget^(1) Expended be Expended Year IncrementalProjects Sq. Ft. Cash YieldFarley (95% New ^ ^interest) York 844,000 1,120,000 (2) 791,994 (2) 328,006 2022 6.4 % (3)PENN2 - as New 1,795,000 750,000 91,219 658,781 2025 9.0 % expanded^(4) YorkPENN1(including New ^ ^LIRR York 2,545,000 450,000 (6) 167,894 282,106 N/A 12.2 % (5)Concourse (7)Retail)^(5)Districtwide New N/A 100,000 19,618 80,382 N/A N/A Improvements YorkTotal ActivePenn 2,420,000 1,070,725 1,349,275 8.0 % DistrictProjects

________________________________

(1) Excluding debt and equity carry.(2) Net of 154,000 of historic tax credit investor contributions, of which 88,000 has been funded to date (at our 95% share). Increase in budget of 90,000 is primarily due to higher projected(3) tenant improvement allowances for the office, restaurant and retail space.(4) PENN2 estimated impact on cash basis NOI and FFO of square feet taken out of service:

2021 2022Square feet out of service at end of year 1,190,000 1,210,000 Year-over-year reduction in Cash Basis NOI^(i) (19,000 ) ? Year-over-year reduction in FFO^(ii) (7,000 ) ? ________________________________(i) After capitalization of real estate taxes andoperating expenses on space out of service. (ii) Net of capitalized interest on space out ofservice under redevelopment.

Property is ground leased through 2098, as fully extended. Fair market(5) value resets occur in 2023, 2048 and 2073. The 12.2% projected return is before the ground rent reset in 2023, which may be material. Increase in budget of 125,000 is primarily due to the addition of the LIRR Concourse Retail project and sustainability initiatives,(6) including the installation of triple pane high energy performance windows and the implementation of an electrification program to allow the building to access more clean renewable electricity.(7) Achieved as existing leases roll; average remaining lease term 4.9 years.

There can be no assurance that the above projects will be completed, completed on schedule or within budget. In addition, there can be no assurance that the Company will be successful in leasing the properties on the expected schedule or at the assumed rental rates.

Conference Call and Audio Webcast

As previously announced, the Company will host a quarterly earnings conference call and an audio webcast on Wednesday, February 17, 2021 at 10:00 a.m. Eastern Time (ET). The conference call can be accessed by dialing 888-771-4371 (domestic) or 847-585-4405 (international) and indicating to the operator the passcode 50075822. A live webcast of the conference call will be available on Vornados website at www.vno.com in the Investor Relations section and an online playback of the webcast will be available on the website following the conference call.

Contact

Thomas J. Sanelli(212) 894-7000

Supplemental Financial Information

Further details regarding results of operations, properties and tenants can be accessed at the Companys website www.vno.com. Vornado Realty Trust is a fully - integrated equity real estate investment trust.

Certain statements contained herein may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. For a discussion of factors that could materially affect the outcome of our forward-looking statements and our future results and financial condition, see Risk Factors in Part I, Item 1A, of our Annual Report on Form 10-K for the year ended December 31, 2020. Such factors include, among others, risks associated with the timing of and costs associated with property improvements, financing commitments and general competitive factors. Currently, one of the most significant factors is the ongoing adverse effect of the COVID-19 pandemic on our business, financial condition, results of operations, cash flows, operating performance and the effect it has had and may continue to have on our tenants, the global, national, regional and local economies and financial markets and the real estate market in general. The extent of the impact of the COVID-19 pandemic will depend on future developments, including the duration of the pandemic, which are highly uncertain at this time but that impact could be material. Moreover, you are cautioned that the COVID-19 pandemic will heighten many of the risks identified in "Item 1A. Risk Factors" in Part I of our Annual Report on Form 10-K for the year ended December 31, 2020.

VORNADO REALTY TRUSTCONSOLIDATED BALANCE SHEETS

(Amounts in thousands) As of December 31, December 31, Increase 2020 2019 (Decrease)ASSETS Real estate, at cost: Land $ 2,420,054 $ 2,591,261 $ (171,207 )Buildings and improvements 7,933,030 7,953,163 (20,133 )Development costs and 1,604,637 1,490,614 114,023 construction in progressMoynihan Train Hall ? 914,960 (914,960 )development expendituresLeasehold improvements and 130,222 124,014 6,208 equipmentTotal 12,087,943 13,074,012 (986,069 )Less accumulated depreciation (3,169,446 ) (3,015,958 ) (153,488 )and amortizationReal estate, net 8,918,497 10,058,054 (1,139,557 )Right-of-use assets 367,365 379,546 (12,181 )Cash and cash equivalents 1,624,482 1,515,012 109,470 Restricted cash 105,887 92,119 13,768 Marketable securities ? 33,313 (33,313 )Tenant and other receivables 77,658 95,733 (18,075 )Investments in partially owned 3,491,107 3,999,165 (508,058 )entitiesReal estate fund investments 3,739 222,649 (218,910 )220 Central Park Southcondominium units ready for 128,215 408,918 (280,703 )saleReceivable arising from the 674,075 742,206 (68,131 )straight-lining of rentsDeferred leasing costs, net 372,919 353,986 18,933 Identified intangible assets, 23,856 30,965 (7,109 )netOther assets 434,022 355,347 78,675 Total assets $ 16,221,822 $ 18,287,013 $ (2,065,191 )LIABILITIES, REDEEMABLENONCONTROLLING INTERESTS AND EQUITYLiabilities: Mortgages payable, net $ 5,580,549 $ 5,639,897 $ (59,348 )Senior unsecured notes, net 446,685 445,872 813 Unsecured term loan, net 796,762 745,840 50,922 Unsecured revolving credit 575,000 575,000 ? facilitiesLease liabilities 401,008 498,254 (97,246 )Moynihan Train Hall obligation ? 914,960 (914,960 )Special dividend/distribution ? 398,292 (398,292 )payableAccounts payable and accrued 427,202 440,049 (12,847 )expensesDeferred revenue 40,110 59,429 (19,319 )Deferred compensation plan 105,564 103,773 1,791 Other liabilities 294,520 265,754 28,766 Total liabilities 8,667,400 10,087,120 (1,419,720 )Redeemable noncontrolling 606,267 888,915 (282,648 )interestsShareholders' equity 6,533,198 6,732,030 (198,832 )Noncontrolling interests in 414,957 578,948 (163,991 )consolidated subsidiariesTotal liabilities, redeemablenoncontrolling interests and $ 16,221,822 $ 18,287,013 $ (2,065,191 )equity

VORNADO REALTY TRUSTOPERATING RESULTS

(Amounts in For the Three Months Ended For the Year Endedthousands, except December 31, December 31,per share amounts) 2020 2019 2020 2019Revenues $ 376,431 $ 460,968 $ 1,527,951 $ 1,924,700 (Loss) income fromcontinuing $ (208,726 ) $ 160,621 $ (461,845 ) $ 3,334,292 operationsIncome (loss) fromdiscontinued ? 55 ? (30 )operationsNet (loss) income (208,726 ) 160,676 (461,845 ) 3,334,262 Less net (income)loss attributable to noncontrollinginterests in:Consolidated (1,109 ) 58,592 139,894 24,547 subsidiariesOperating 14,856 (13,518 ) 24,946 (210,872 )PartnershipNet (loss) incomeattributable to (194,979 ) 205,750 (297,005 ) 3,147,937 VornadoPreferred share (14,148 ) (12,533 ) (51,739 ) (50,131 )dividendsNet (loss) incomeattributable to $ (209,127 ) $ 193,217 $ (348,744 ) $ 3,097,806 common shareholders (Loss) income percommon share - basic:Net (loss) income $ (1.09 ) $ 1.01 $ (1.83 ) $ 16.23 per common shareWeighted average 191,279 190,916 191,146 190,801 shares outstanding (Loss) income percommon share - diluted:Net (loss) income $ (1.09 ) $ 1.01 $ (1.83 ) $ 16.21 per common shareWeighted average 191,279 191,140 191,146 191,053 shares outstanding FFO attributable tocommon shareholdersplus assumed $ 138,399 $ 311,876 $ 750,522 $ 1,003,398 conversions(non-GAAP)Per diluted share $ 0.72 $ 1.63 $ 3.93 $ 5.25 (non-GAAP) FFO attributable tocommon shareholdersplus assumed $ 127,217 $ 171,030 $ 483,044 $ 666,207 conversions, asadjusted (non-GAAP)Per diluted share $ 0.66 $ 0.89 $ 2.53 $ 3.49 (non-GAAP) Weighted averageshares used indetermining FFOattributable to 191,304 191,140 191,193 191,051 common shareholdersplus assumedconversions perdiluted share

FFO is computed in accordance with the definition adopted by the Board of Governors of the National Association of Real Estate Investment Trusts (NAREIT). NAREIT defines FFO as GAAP net income or loss adjusted to exclude net gains from sales of depreciable real estate assets, real estate impairment losses, depreciation and amortization expense from real estate assets and other specified items, including the pro rata share of such adjustments of unconsolidated subsidiaries. FFO and FFO per diluted share are non-GAAP financial measures used by management, investors and analysts to facilitate meaningful comparisons of operating performance between periods and among our peers because it excludes the effect of real estate depreciation and amortization and net gains on sales, which are based on historical costs and implicitly assume that the value of real estate diminishes predictably over time, rather than fluctuating based on existing market conditions. FFO does not represent cash generated from operating activities and is not necessarily indicative of cash available to fund cash requirements and should not be considered as an alternative to net income as a performance measure or cash flow as a liquidity measure. FFO may not be comparable to similarly titled measures employed by other companies. In addition to FFO attributable to common shareholders plus assumed conversions, we also disclose FFO attributable to common shareholders plus assumed conversions, as adjusted. Although this non-GAAP measure clearly differs from NAREITs definition of FFO, we believe it provides a meaningful presentation of operating performance. Reconciliations of net (loss) income attributable to common shareholders to FFO attributable to common shareholders plus assumed conversions are provided on the following page. Reconciliations of FFO attributable to common shareholders plus assumed conversions to FFO attributable to common shareholders plus assumed conversions, as adjusted are provided on page 3 of this press release.

VORNADO REALTY TRUSTNON-GAAP RECONCILIATIONS

The following table reconciles net (loss) income attributable to common shareholders to FFO attributable to common shareholders plus assumed conversions:

(Amounts in For the Three Months Ended For the Year Endedthousands, except December 31, December 31,per share amounts) 2020 2019 2020 2019Net (loss) incomeattributable to $ (209,127 ) $ 193,217 $ (348,744 ) $ 3,097,806 common shareholdersPer diluted share $ (1.09 ) $ 1.01 $ (1.83 ) $ 16.21 FFO adjustments: Depreciation andamortization of $ 99,196 $ 85,609 $ 368,556 $ 389,024 real propertyReal estate 236,286 565 236,286 32,001 impairment lossesNet gain ontransfer to FifthAvenue and TimesSquare JV on April18, 2019, net of ? ? ? (2,559,154 )$11,945attributable tononcontrollinginterestsNet losses (gains)on sale of real ? 58 ? (178,711 )estateNet gain from saleof UE common shares ? ? ? (62,395 )(sold on March 4,2019)Decrease (increase)in fair value of marketablesecurities:PREIT (accountedfor as a marketablesecurity from March ? 2,438 4,938 21,649 12, 2019 and soldon January 23,2020)Lexington (sold on ? ? ? (16,068 )March 1, 2019)Other ? ? ? (48 )Proportionate shareof adjustments toequity in net income of partiallyowned entities toarrive at FFO:Non-cash impairmentloss on ourinvestment in FifthAvenue and TimesSquare JV,reversing a portionof the $2.559billion gain ? ? 409,060 ? recognized on theApril 2019 transferto the JointVentureattributable to theGAAP requiredwrite-up of theretained interestDepreciation andamortization of 37,500 37,389 156,646 134,706 real property(Increase) decreasein fair value of (710 ) 864 2,801 2,852 marketablesecurities 372,272 126,923 1,178,287 (2,236,144 )Noncontrollinginterests' share of (24,757 ) (8,278 ) (79,068 ) 141,679 above adjustmentsFFO adjustments, $ 347,515 $ 118,645 $ 1,099,219 $ (2,094,465 )net FFO attributable to 138,388 311,862 750,475 1,003,341 common shareholdersConvertiblepreferred share 11 14 47 57 dividendsFFO attributable tocommon shareholders $ 138,399 $ 311,876 $ 750,522 $ 1,003,398 plus assumedconversionsPer diluted share $ 0.72 $ 1.63 $ 3.93 $ 5.25 Reconciliation ofweighted average shares outstanding:Weighted averagecommon shares 191,279 190,916 191,146 190,801 outstandingEffect of dilutive securities:Convertible 25 33 28 34 preferred sharesEmployee stockoptions and ? 191 19 216 restricted shareawardsDenominator for FFO 191,304 191,140 191,193 191,051 per diluted share

VORNADO REALTY TRUSTNON-GAAP RECONCILIATIONS - CONTINUED

Below is a reconciliation of net (loss) income to NOI at share and NOI at share - cash basis for the three months and year ended December 31, 2020 and 2019 and the three months ended September 30, 2020.

For the Three Months Ended For the Year Ended(Amounts in December 31, December 31,thousands) 2020 2019 September 2020 2019 30, 2020Net (loss) $ (208,726 ) $ 160,676 $ 68,736 $ (461,845 ) $ 3,334,262 incomeDepreciationand 107,084 92,926 107,013 399,695 419,107 amortizationexpenseGeneral andadministrative 61,254 39,791 32,407 181,509 169,920 expenseImpairmentlosses andtransaction 242,593 3,223 584 174,027 106,538 related costs,net(Income) lossfrom partially (24,567 ) (22,726 ) 80,909 329,112 (78,865 )owned entitiesLoss from realestate fund 999 90,302 13,823 226,327 104,082 investmentsInterest andotherinvestment (1,569 ) (5,889 ) (1,729 ) 5,499 (21,819 )(income) loss,netInterest and 54,633 59,683 57,371 229,251 286,623 debt expenseNet gain ontransfer toFifth Avenue ? ? ? ? (2,571,099 )and TimesSquare JVNet gains ondisposition ofwholly owned (42,458 ) (203,835 ) (214,578 ) (381,320 ) (845,499 )and partiallyowned assetsIncome tax(benefit) (1,801 ) 22,897 23,781 36,630 103,439 expense(Income) lossfrom ? (55 ) ? ? 30 discontinuedoperationsNOI frompartially 76,952 85,990 78,175 306,495 322,390 owned entitiesNOIattributabletononcontrolling (15,901 ) (17,417 ) (25,959 ) (72,801 ) (69,332 )interests inconsolidatedsubsidiariesNOI at share 248,493 305,566 220,533 972,579 1,259,777 Non cashadjustmentsforstraight-linerents, (2,001 ) (6,590 ) 10,981 46,246 (6,060 )amortizationof acquiredbelow-marketleases, netand otherNOI at share - $ 246,492 $ 298,976 $ 231,514 $ 1,018,825 $ 1,253,717 cash basis

NOI at share represents total revenues less operating expenses including our share of partially owned entities. NOI at share - cash basis represents NOI at share adjusted to exclude straight-line rental income and expense, amortization of acquired below and above market leases, net and other non-cash adjustments. We consider NOI at share - cash basis to be the primary non-GAAP financial measure for making decisions and assessing the unlevered performance of our segments as it relates to the total return on assets as opposed to the levered return on equity. As properties are bought and sold based on NOI at share - cash basis, we utilize this measure to make investment decisions as well as to compare the performance of our assets to that of our peers. NOI at share and NOI at share - cash basis should not be considered alternatives to net income or cash flow from operations and may not be comparable to similarly titled measures employed by other companies. NOI at share - cash basis includes rent that has been deferred as a result of the COVID-19 pandemic. Rent deferrals generally require repayment in monthly installments over a period of time not to exceed twelve months.

VORNADO REALTY TRUSTNON-GAAP RECONCILIATIONS - CONTINUED

Below are reconciliations of NOI at share to same store NOI at share for our New York segment, theMART, 555 California Street and other investments for the three months ended December 31, 2020 compared to December 31, 2019.

(Amounts in 555thousands) Total New York theMART California Other StreetNOI at sharefor thethree months $ 248,493 $ 212,544 $ 17,091 $ 14,638 $ 4,220 endedDecember 31,2020Less NOI at share from:Development (5,011 ) (5,011 ) ? ? ? propertiesHotelPennsylvania(closed 7,810 7,810 ? ? ? beginningApril 1,2020)Othernon-same (7,032 ) (2,812 ) ? ? (4,220 ) storeincome, netSame storeNOI at sharefor thethree months $ 244,260 $ 212,531 $ 17,091 $ 14,638 $ ? endedDecember 31,2020 NOI at sharefor thethree months $ 305,566 $ 266,284 $ 22,712 $ 14,533 $ 2,037 endedDecember 31,2019Less NOI at share from:Development (14,626 ) (14,626 ) ? ? ? propertiesHotelPennsylvania(closed (6,168 ) (6,168 ) ? ? ? beginningApril 1,2020)Othernon-samestore (9,376 ) (7,237 ) (173 ) 71 (2,037 ) (income)expense, netSame storeNOI at sharefor thethree months $ 275,396 $ 238,253 $ 22,539 $ 14,604 $ ? endedDecember 31,2019 (Decrease)increase insame storeNOI at sharefor thethree months $ (31,136 ) $ (25,722 ) $ (5,448 ) $ 34 $ ? endedDecember 31,2020compared toDecember 31,2019 % (decrease)increase in (11.3 ) % (10.8 ) % (24.2 ) % 0.2 % ? %same storeNOI at share

Same store NOI at share represents NOI at share from operations which are in service in both the current and prior year reporting periods. Same store NOI at share - cash basis is same store NOI at share adjusted to exclude straight-line rental income and expense, amortization of acquired below and above market leases, net and other non-cash adjustments. We present these non-GAAP measures to (i) facilitate meaningful comparisons of the operational performance of our properties and segments, (ii) make decisions on whether to buy, sell or refinance properties, and (iii) compare the performance of our properties and segments to those of our peers.Same store NOI at share and same store NOI at share - cash basis should not be considered alternatives to net income or cash flow from operations and may not be comparable to similarly titled measures employed by other companies.

VORNADO REALTY TRUSTNON-GAAP RECONCILIATIONS - CONTINUED

Below are reconciliations of NOI at share - cash basis to same store NOI at share - cash basis for our New York segment, theMART, 555 California Street and other investments for the three months ended December 31, 2020 compared to December 31, 2019.

(Amounts in 555thousands) Total New York theMART California Other StreetNOI at share- cash basisfor thethree months $ 246,492 $ 208,949 $ 18,075 $ 14,947 $ 4,521 endedDecember 31,2020Less NOI atshare - cash basis from:Development (7,194 ) (7,194 ) ? ? ? propertiesHotelPennsylvania(closed 7,223 7,223 ? ? ? beginningApril 1,2020)Othernon-same (7,984 ) (3,463 ) ? ? (4,521 ) storeincome, netSame storeNOI at share- cash basisfor the $ 238,537 $ 205,515 $ 18,075 $ 14,947 $ ? three monthsendedDecember 31,2020 NOI at share- cash basisfor thethree months $ 298,976 $ 257,707 $ 24,646 $ 14,491 $ 2,132 endedDecember 31,2019Less NOI atshare - cash basis from:Development (16,308 ) (16,308 ) ? ? ? propertiesHotelPennsylvania(closed (6,050 ) (6,050 ) ? ? ? beginningApril 1,2020)Othernon-same (10,882 ) (8,577 ) (173 ) ? (2,132 ) storeincome, netSame storeNOI at share- cash basisfor the $ 265,736 $ 226,772 $ 24,473 $ 14,491 $ ? three monthsendedDecember 31,2019 (Decrease)increase insame storeNOI at share- cash basisfor thethree months $ (27,199 ) $ (21,257 ) $ (6,398 ) $ 456 $ ? endedDecember 31,2020compared toDecember 31,2019 % (decrease)increase insame store (10.2 ) % (9.4 ) % (26.1 ) % 3.1 % ? %NOI at share- cash basis

VORNADO REALTY TRUSTNON-GAAP RECONCILIATIONS - CONTINUED

Below are reconciliations of NOI at share to same store NOI at share for our New York segment, theMART, 555 California Street and other investments for the year ended December 31, 2020 compared to December 31, 2019.

(Amounts in 555thousands) Total New York theMART California Other StreetNOI at sharefor the yearended $ 972,579 $ 833,891 $ 69,178 $ 60,324 $ 9,186 December 31,2020Less NOI at share from:Development (30,946 ) (30,946 ) ? ? ? propertiesHotelPennsylvania(closed 33,146 33,146 ? ? ? beginningApril 1,2020)Othernon-samestore (27,898 ) (18,361 ) (524 ) 173 (9,186 ) (income)expense, netSame storeNOI at sharefor the year $ 946,881 $ 817,730 $ 68,654 $ 60,497 $ ? endedDecember 31,2020 NOI at sharefor the yearended $ 1,259,777 $ 1,072,828 $ 102,071 $ 59,657 $ 25,221 December 31,2019Less NOI at share from:Change inownershipinterests inpropertiescontributed (35,770 ) (35,770 ) ? ? ? to FifthAvenue andTimes SquareJVDispositions (7,420 ) (7,420 ) ? ? ? Development (68,063 ) (68,063 ) ? ? ? propertiesHotelPennsylvania(closed (13,212 ) (13,212 ) ? ? ? beginningApril 1,2020)Othernon-samestore (36,827 ) (11,722 ) (354 ) 470 (25,221 ) (income)expense, netSame storeNOI at sharefor the year $ 1,098,485 $ 936,641 $ 101,717 $ 60,127 $ ? endedDecember 31,2019 (Decrease)increase insame storeNOI at sharefor the yearended $ (151,604 ) $ (118,911 ) $ (33,063 ) $ 370 $ ? December 31,2020compared toDecember 31,2019 % (decrease)increase in (13.8 ) % (12.7 ) % (32.5 ) % 0.6 % ? %same storeNOI at share

VORNADO REALTY TRUSTNON-GAAP RECONCILIATIONS - CONTINUED

Below are reconciliations of NOI at share - cash basis to same store NOI at share - cash basis for our New York segment, theMART, 555 California Street and other investments for the year ended December 31, 2020 compared to December 31, 2019.

(Amounts in 555thousands) Total New York theMART California Other StreetNOI at share- cash basisfor the year $ 1,018,825 $ 870,606 $ 76,251 $ 60,917 $ 11,051 endedDecember 31,2020Less NOI atshare - cash basis from:Development (42,531 ) (42,531 ) ? ? ? propertiesHotelPennsylvania(closed 32,576 32,576 ? ? ? beginningApril 1,2020)Othernon-samestore (39,271 ) (27,672 ) (553 ) 5 (11,051 ) (income)expense, netSame storeNOI at share- cash basisfor the year $ 969,599 $ 832,979 $ 75,698 $ 60,922 $ ? endedDecember 31,2020 NOI at share- cash basisfor the year $ 1,253,717 $ 1,060,510 $ 108,130 $ 60,156 $ 24,921 endedDecember 31,2019Less NOI atshare - cash basis from:Change inownershipinterests inpropertiescontributed (32,905 ) (32,905 ) ? ? ? to FifthAvenue andTimes SquareJVDispositions (8,219 ) (8,219 ) ? ? ? Development (87,856 ) (87,856 ) ? ? ? propertiesHotelPennsylvania(closed (12,997 ) (12,997 ) ? ? ? beginningApril 1,2020)Othernon-samestore (54,571 ) (29,207 ) (692 ) 249 (24,921 ) (income)expense, netSame storeNOI at share- cash basisfor the year $ 1,057,169 $ 889,326 $ 107,438 $ 60,405 $ ? endedDecember 31,2019 (Decrease)increase insame storeNOI at share- cash basisfor the year $ (87,570 ) $ (56,347 ) $ (31,740 ) $ 517 $ ? endedDecember 31,2020compared toDecember 31,2019 % (decrease)increase insame store (8.3 ) % (6.3 ) % (29.5 ) % 0.9 % ? %NOI at share- cash basis

VORNADO REALTY TRUSTNON-GAAP RECONCILIATIONS - CONTINUED

Below are reconciliations of NOI at share to same store NOI at share for our New York segment, theMART, 555 California Street and other investments for the three months ended December 31, 2020 compared to September 30, 2020.

(Amounts in 555thousands) Total New York theMART California Other StreetNOI at sharefor thethree months $ 248,493 $ 212,544 $ 17,091 $ 14,638 $ 4,220 endedDecember 31,2020Less NOI at share from:Development (5,011 ) (5,011 ) ? ? ? propertiesHotelPennsylvania(closed 7,810 7,810 ? ? ? beginningApril 1,2020)Othernon-same (6,109 ) (1,889 ) ? ? (4,220 ) storeincome, netSame storeNOI at sharefor thethree months $ 245,183 $ 213,454 $ 17,091 $ 14,638 $ ? endedDecember 31,2020 NOI at sharefor thethree months $ 220,533 $ 189,820 $ 13,171 $ 15,618 $ 1,924 endedSeptember30, 2020Less NOI at share from:Development (4,288 ) (4,288 ) ? ? ? propertiesHotelPennsylvania(closed 16,822 16,822 ? ? ? beginningApril 1,2020)Othernon-samestore (2,714 ) (737 ) (101 ) 48 (1,924 ) (income)expense, netSame storeNOI at sharefor thethree months $ 230,353 $ 201,617 $ 13,070 $ 15,666 $ ? endedSeptember30, 2020 Increase(decrease)in samestore NOI atshare forthe three $ 14,830 $ 11,837 $ 4,021 $ (1,028 ) $ ? months endedDecember 31,2020compared toSeptember30, 2020 % increase(decrease)in same 6.4 % 5.9 % 30.8 % (6.6 ) % ? %store NOI atshare

VORNADO REALTY TRUSTNON-GAAP RECONCILIATIONS - CONTINUED

Below are reconciliations of NOI at share - cash basis to same store NOI at share - cash basis for our New York segment, theMART, 555 California Street and other investments for the three months ended December 31, 2020 compared to September 30, 2020.

(Amounts in 555thousands) Total New York theMART California Other StreetNOI at share- cash basisfor thethree months $ 246,492 $ 208,949 $ 18,075 $ 14,947 $ 4,521 endedDecember 31,2020Less NOI atshare - cash basis from:Development (7,194 ) (7,194 ) ? ? ? propertiesHotelPennsylvania(closed 7,223 7,223 ? ? ? beginningApril 1,2020)Othernon-same (7,057 ) (2,536 ) ? ? (4,521 ) storeincome, netSame storeNOI at share- cash basisfor the $ 239,464 $ 206,442 $ 18,075 $ 14,947 $ ? three monthsendedDecember 31,2020 NOI at share- cash basisfor thethree months $ 231,514 $ 196,081 $ 17,706 $ 15,530 $ 2,197 endedSeptember30, 2020Less NOI atshare - cash basis from:Development (7,733 ) (7,733 ) ? ? ? propertiesHotelPennsylvania(closed 16,830 16,830 ? ? ? beginningApril 1,2020)Othernon-samestore (4,518 ) (2,196 ) (130 ) 5 (2,197 ) (income)expense, netSame storeNOI at share- cash basisfor the $ 236,093 $ 202,982 $ 17,576 $ 15,535 $ ? three monthsendedSeptember30, 2020 Increase(decrease)in samestore NOI atshare - cashbasis forthe three $ 3,371 $ 3,460 $ 499 $ (588 ) $ ? months endedDecember 31,2020compared toSeptember30, 2020 % increase(decrease)in same 1.4 % 1.7 % 2.8 % (3.8 ) % ? %store NOI atshare - cashbasis