GlobeNewswire Inc | Nov 1, 2021 04:20PM EDT

November 01, 2021

NEW YORK, Nov. 01, 2021 (GLOBE NEWSWIRE) -- Vornado Realty Trust (NYSE: VNO) reported today:

Quarter Ended September 30, 2021 Financial Results

NET INCOME attributable to common shareholders for the quarter ended September 30, 2021 was $37,689,000, or $0.20 per diluted share, compared to $53,170,000, or $0.28 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 September 30, 2021 was $25,926,000, or $0.14 per diluted share, and net loss attributable to common shareholders, as adjusted (non-GAAP) for the quarter ended September 30, 2020 was $9,386,000, or $0.05 per diluted share.

FUNDS FROM OPERATIONS ("FFO") attributable to common shareholders plus assumed conversions (non-GAAP) for the quarter ended September 30, 2021 was $158,286,000, or $0.82 per diluted share, compared to $278,507,000, or $1.46 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 September 30, 2021 and 2020 was $136,213,000 and $116,698,000, or $0.71 and $0.61 per diluted share, respectively.

Nine Months Ended September 30, 2021 Financial Results

NET INCOME attributable to common shareholders for the nine months ended September 30, 2021 was $89,817,000, or $0.47 per diluted share, compared to net loss attributable to common shareholders of$139,617,000, or $0.73 per diluted share, for the nine months ended September 30, 2020. 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 nine months ended September 30, 2021 and 2020 was $65,176,000 and $18,198,000, or $0.34 and $0.10 per diluted share, respectively.

FFO attributable to common shareholders plus assumed conversions (non-GAAP) for the nine months ended September 30, 2021 was $430,057,000, or $2.24 per diluted share, compared to $612,123,000, or $3.20 per diluted share, for the nine months ended September 30, 2020. 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 nine months ended September 30, 2021 and 2020 was $393,733,000 and $370,918,000, or $2.05 and $1.94 per diluted share, respectively.

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

(Amounts in thousands, For the Three Months For the Nine Months Endedexcept per share Ended September 30,amounts) September 30, 2021 2020 2021 2020Net income (loss)attributable to common $ 37,689 $ 53,170 $ 89,817 $ (139,617 )shareholdersPer diluted share $ 0.20 $ 0.28 $ 0.47 $ (0.73 ) Certain (income) expenseitems that impact netincome (loss) attributable to commonshareholders:Tax benefit recognizedby our taxable REIT $ (27,910 ) $ ? $ (27,910 ) $ ? subsidiariesPreviously capitalizedSeries K preferred share 9,033 ? 9,033 ? issuance costsAfter-tax net gain onsale of 220 Central Park (8,815 ) (186,909 ) (31,023 ) (295,825 )South ("220 CPS")condominium unit(s)Real estate impairmentlosses in connectionwith the sales of 7,880 ? 7,880 ? Madison Avenue retailpropertiesHotel Pennsylvania loss(permanently closed on 6,492 7,706 20,474 25,232 April 5, 2021)Our share of (income)loss from real estate (294 ) 2,524 (2,193 ) 64,771 fund investmentsNon-cash impairment losson our investment inFifth Avenue and TimesSquare JV, reversing aportion of the $2.559billion gain recognized ? 103,201 ? 409,060 on the April 2019transfer to the jointventure attributable tothe GAAP requiredwrite-up of the retainedinterestSeverance accrualrelated to HotelPennsylvania closure, ? 6,101 ? 6,101 net of $3,145 of incometax benefit608 Fifth Avenuenon-cash lease liability ? ? ? (70,260 )extinguishment gainCredit losses on loansreceivable resultingfrom a new GAAP ? ? ? 13,369 accounting standardeffective January 1,2020Mark-to-market decreasein Pennsylvania RealEstate Investment Trust ? ? ? 4,938 common shares (sold onJanuary 23, 2020)Other 733 766 (2,942 ) 10,681 (12,881 ) (66,611 ) (26,681 ) 168,067 Noncontrollinginterests' share of 1,118 4,055 2,040 (10,252 )above adjustmentsTotal of certain(income) expense itemsthat impact net income $ (11,763 ) $ (62,556 ) $ (24,641 ) $ 157,815 (loss) attributable tocommon shareholdersPer diluted share $ (0.06 ) $ (0.33 ) $ (0.13 ) $ 0.83 (non-GAAP) Net income (loss)attributable to common $ 25,926 $ (9,386 ) $ 65,176 $ 18,198 shareholders, asadjusted (non-GAAP)Per diluted share $ 0.14 $ (0.05 ) $ 0.34 $ 0.10 (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 thousands, For the Three Months Ended For the Nine Months Endedexcept per share September 30, September 30,amounts) 2021 2020 2021 2020FFO attributable tocommon shareholdersplus assumed $ 158,286 $ 278,507 $ 430,057 $ 612,123 conversions (non-GAAP)^(1)Per diluted share $ 0.82 $ 1.46 $ 2.24 $ 3.20 (non-GAAP) Certain (income)expense items thatimpact FFO attributable to common shareholdersplus assumedconversions:Tax benefit recognizedby our taxable REIT $ (27,910 ) $ ? $ (27,910 ) $ ? subsidiariesPreviously capitalizedSeries K preferred 9,033 ? 9,033 ? share issuance costsAfter-tax net gain onsale of 220 CPS (8,815 ) (186,909 ) (31,023 ) (295,825 )condominium unit(s)Hotel Pennsylvania loss(permanently closed on 3,892 5,127 12,331 17,431 April 5, 2021)Our share of (income)loss from real estate (294 ) 2,524 (2,193 ) 64,771 fund investmentsSeverance accrualrelated to HotelPennsylvania closure, ? 6,101 ? 6,101 net of $3,145 of incometax benefit608 Fifth Avenuenon-cash lease ? ? ? (70,260 )liabilityextinguishment gainCredit losses on loansreceivable resultingfrom a new GAAP ? ? ? 13,369 accounting standardeffective January 1,2020Other 451 381 1,215 7,045 (23,643 ) (172,776 ) (38,547 ) (257,368 )Noncontrollinginterests' share of 1,570 10,967 2,223 16,163 above adjustmentsTotal of certain(income) expense itemsthat impact FFOattributable to common $ (22,073 ) $ (161,809 ) $ (36,324 ) $ (241,205 )shareholders plusassumed conversions,netPer diluted share $ (0.11 ) $ (0.85 ) $ (0.19 ) $ (1.26 )(non-GAAP) FFO attributable tocommon shareholdersplus assumed $ 136,213 $ 116,698 $ 393,733 $ 370,918 conversions, asadjusted (non-GAAP)Per diluted share $ 0.71 $ 0.61 $ 2.05 $ 1.94 (non-GAAP)

____________________________________________________________(1)See page 12 for a reconciliation of our 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, 2021 and 2020.

FFO, as Adjusted Bridge - Q3 2021 vs. Q3 2020

The following table bridges our FFO attributable to common shareholders plus assumed conversions, as adjusted (non-GAAP) for the three months ended September 30, 2020 to FFO attributable to common shareholders plus assumed conversions, as adjusted (non-GAAP) for the three months ended September 30, 2021:

(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 $ 116.7 $ 0.61 months ended September 30, 2020 Increase (decrease) in FFO, as adjusted due to: Rent commencement and other tenant related items 19.7 Variable businesses: Signage 3.5 BMS 2.3 Garages 2.1 Trade shows 1.3 9.2 Acquisition of our partner's 45% ownership interest in 4.8 One Park Avenue on August 5, 2021General and administrative (primarily due to overhead 3.7 reduction program announced in December 2020)Increase in real estate tax expense primarily due to arecent increase in the triennial tax-assessed value of (12.5 ) theMARTOther, net (4.3 ) 20.6 Noncontrolling interests' share of above items (1.1 ) Net increase 19.5 0.10 FFO attributable to common shareholders plus assumedconversions, as adjusted (non-GAAP) for the three $ 136.2 $ 0.71 months ended September 30, 2021

See page 12 for reconciliations of our 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, 2021 and 2020. 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.

Acquisition:

One Park Avenue

On August 5, 2021, pursuant to a right of first offer, we increased our ownership interest in One Park Avenue, a 943,000 square foot Manhattan office building, to 100.0% by acquiring our joint venture partner's 45.0% ownership interest in the property. The purchase price values the property at $875,000,000. We paid approximately $158,000,000 in cash and assumed our joint venture partner's share of the $525,000,000 mortgage loan. We previously accounted for our investment under the equity method and have consolidated the accounts of the property from the date of acquisition of the additional 45% ownership interest.

On February 26, 2021, the joint venture completed a $525,000,000 refinancing of One Park Avenue. The interest-only loan bears a rate of LIBOR plus 1.11% (1.19% as of September 30, 2021) and matures in March 2026, as fully extended. We realized our $105,000,000 share of net proceeds. The loan replaced the previous $300,000,000 loan that bore interest at LIBOR plus 1.75% and was scheduled to mature in March 2021.

Dispositions:

220 Central Park South ("220 CPS")

During the three months ended September 30, 2021, we closed on the sale of one condominium unit at 220 CPS for net proceeds of $25,467,000 resulting in a net gain of $10,087,000 which is included in "net gains on disposition of wholly owned and partially owned assets" on our consolidated statements of income. In connection with this sale, $1,272,000 of income tax expense was recognized on our consolidated statements of income. During the nine months ended September 30, 2021, we closed on the sale of four condominium units at 220 CPS for net proceeds of $97,683,000 resulting in a net gain of $35,359,000 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, $4,336,000 of income tax expense was recognized on our consolidated statements of income. From inception to September 30, 2021, we have closed on the sale of 104 units for net proceeds of $2,967,175,000 resulting in financial statement net gains of $1,102,296,000.

Alexanders, Inc. (Alexanders)

On June 4, 2021, Alexander's completed the sale of a parcel of land in the Bronx, New York for $10,000,000. As a result of the sale, we recognized our $2,956,000 share of the net gain and also received a $300,000 sales commission paid by Alexander's.

On October 4, 2021, Alexander's sold its Paramus, New Jersey property to IKEA Property, Inc. ("IKEA"), the tenant at the property, for $75,000,000 pursuant to IKEA's purchase option contained in the lease. The property was encumbered by a $68,000,000 mortgage loan which was repaid at closing of the sale. As a result of the sale, we will recognize in the fourth quarter of 2021 our approximate $11,600,000 share of the net gain and a $750,000 sales commission paid by Alexander's to Vornado.

Alexander's announced that it does not expect to pay a special dividend related to these transactions.

SoHo Properties

On May 10, 2021, we entered into an agreement to sell two Manhattan retail properties located at 478-482 Broadway and 155 Spring Street for $84,500,000. We expect to close the sale in the first quarter of 2022 and recognize a net gain of approximately $1,500,000.

Madison Avenue

On September 24, 2021, we sold three Manhattan retail properties located at 677-679, 759-771 and 828-850 Madison Avenue in two separate sale transactions for an aggregate sales price of $100,000,000. Net proceeds from the sales were $96,503,000. In connection with the sales, we recorded $7,880,000 of non-cash impairment losses which are included in "(impairment losses, transaction related costs and other) lease liability extinguishment gain" on our consolidated statements of income for the three and nine months ended September 30, 2021.

Financings

PENN 11

On March 7, 2021, we entered into an interest rate swap agreement for our $500,000,000 PENN 11 mortgage loan to swap the interest rate on the mortgage loan from LIBOR plus 2.75% (2.83% as of September 30, 2021) to a fixed rate of 3.03% through March 2024.

909 Third Avenue

On March 26, 2021, we completed a $350,000,000 refinancing of 909 Third Avenue, a 1.4million square foot Manhattan office building. The interest-only loan bears a fixed rate of 3.23% and matures in April 2031. The loan replaced the previous $350,000,000 loan that bore interest at a fixed rate of 3.91% and was scheduled to mature in May 2021.

Financings - continued

Unsecured Revolving Credit Facility

On April 15, 2021, we extended our $1.25billion unsecured revolving credit facility from January 2023 (as fully extended) to April 2026 (as fully extended). The interest rate on the extended facility was lowered to LIBOR plus 0.90% from LIBOR plus 1.00%. We subsequently qualified for a sustainability margin adjustment by achieving certain KPI metrics, which reduced our interest rate by 0.01% to LIBOR plus 0.89%. The facility fee remains at 20 basis points. Our separate $1.50billion unsecured revolving credit facility matures in March 2024 (as fully extended) and has an interest rate of LIBOR plus 0.90% and a facility fee of 20 basis points.

555 California Street

On May 10, 2021, we completed a $1.2billion refinancing of 555 California Street, a three building 1.8million square foot office campus in San Francisco, in which we own a 70.0% controlling interest. The interest-only loan bears a rate of LIBOR plus 1.93% in years one through five (2.02% as of September 30, 2021), LIBOR plus 2.18% in year six and LIBOR plus 2.43% in year seven. The loan matures in May 2028, as fully extended. We swapped the interest rate on our $840,000,000 share of the loan to a fixed rate of 2.26% through May 2024. The loan replaces the previous $533,000,000 loan that bore interest at a fixed rate of 5.10% and was scheduled to mature in September 2021.

Senior Unsecured Notes

On May 24, 2021, we completed a green bond public offering of $400,000,000 2.15% senior unsecured notes due June 1, 2026 ("2026 Notes") and $350,000,000 3.40% senior unsecured notes due June 1, 2031 ("2031 Notes"). Interest on the senior unsecured notes will be payable semi-annually on June 1 and December 1, commencing December 1, 2021. The 2026 Notes were sold at 99.86% of their face amount to yield 2.18% and the 2031 Notes were sold at 99.59% of their face amount to yield 3.45%.

theMART

On May 28, 2021, we repaid the $675,000,000 mortgage loan on theMART, a 3.7 million square foot commercial building in Chicago, with proceeds from our senior unsecured notes offering. The loan bore interest at 2.70% and was scheduled to mature in September 2021.

Preferred Securities

On September 22, 2021, Vornado sold 12,000,000 4.45% Series O cumulative redeemable preferred shares at a price of $25.00 per share, pursuant to an effective registration statement. Vornado received aggregate net proceeds of $291,195,000, after underwriters' discount and issuance costs, and contributed the net proceeds to the Operating Partnership in exchange for 12,000,000 4.45% Series O preferred units (with economic terms that mirror those of the Series O preferred shares). Dividends on the Series O preferred shares/units are cumulative and payable quarterly in arrears. The Series O 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 O preferred shares/units at a redemption price of $25.00 per share/unit, plus accrued and unpaid dividends/distributions through the date of redemption. The Series O preferred shares/units have no maturity date and will remain outstanding indefinitely unless redeemed by Vornado. Vornado used the net proceeds for the redemption of its 5.70% Series K cumulative redeemable preferred shares/units (see below).

On September 13, 2021, we called for redemption of all of the outstanding 5.70% Series K cumulative redeemable preferred shares/units. As a result, as of September 30, 2021, we reclassified the 5.70% Series K preferred shares/units from shareholders' equity/partners' capital to liabilities on our consolidated balance sheets. On October 13, 2021, we redeemed all of the outstanding 5.70% Series K preferred shares/units at their redemption price of $25.00 per share/unit, or $300,000,000 in the aggregate, plus accrued and unpaid dividends/distributions through the date of redemption. In connection with the redemption, we expensed $9,033,000 of previously capitalized issuance costs in "Series K preferred share/unit issuance costs" on our consolidated statements of income to arrive at "net income attributable to common shareholders" for the three and nine months ended September 30, 2021.

Leasing Activity For the Three Months Ended September 30, 2021:

-- 757,000 square feet of New York Office space (672,000 square feet at share) at an initial rent of $77.26 per square foot and a weighted average lease term of 7.6 years. The changes in the GAAP and cash mark-to-market rent on the 629,000 square feet of second generation space were positive 4.2% and positive 1.4%, respectively. Tenant improvements and leasing commissions were $10.18 per square foot per annum, or 13.2% of initial rent. -- 111,000 square feet of New York Retail space (105,000 square feet at share) at an initial rent of $109.61 per square foot and a weighted average lease term of 26.4 years.The changes in the GAAP and cash mark-to-market rent on the 95,000 square feet of second generation space were positive 45.3% and positive 19.6%, respectively. Tenant improvements and leasing commissions were $1.65 per square foot per annum, or 1.5% of initial rent. -- 103,000 square feet at theMART (all at share) at an initial rent of $49.89 per square foot and a weighted average lease term of 7.9 years.The changes in the GAAP and cash mark-to-market rent on the 62,000 square feet of second generation space were positive 13.6% and positive 2.4%, respectively. Tenant improvements and leasing commissions were $14.42 per square foot per annum, or 28.9% of initial rent. -- 23,000 square feet at 555 California Street (16,000 square feet at share) at an initial rent of $113.77 per square foot and a weighted average lease term of 3.3 years.The changes in the GAAP and cash mark-to-market rent on the 12,000 square feet of second generation space were positive 12.9% and positive 2.9%, respectively. Tenant improvements and leasing commissions were $7.11 per square foot per annum, or 6.2% of initial rent.

Leasing Activity For the Nine Months Ended September 30, 2021:

-- 1,298,000 square feet of New York Office space (1,122,000 square feet at share) at an initial rent of $79.78 per square foot and a weighted average lease term of 8.8 years. The changes in the GAAP and cash mark-to-market rent on the 911,000 square feet of second generation space were positive 1.1% and negative 0.3% respectively. Tenant improvements and leasing commissions were $11.11 per square foot per annum, or 13.9% of initial rent. -- 176,000 square feet of New York Retail space (158,000 square feet at share) at an initial rent of $142.70 per square foot and a weighted average lease term of 21.0 years.The changes in the GAAP and cash mark-to-market rent on the 107,000 square feet of second generation space were positive 40.5% and positive 15.5%, respectively. Tenant improvements and leasing commissions were $3.53 per square foot per annum, or 2.5% of initial rent. -- 302,000 square feet at theMART (all at share) at an initial rent of $50.86 per square foot and a weighted average lease term of 6.0 years.The changes in the GAAP and cash mark-to-market rent on the 256,000 square feet of second generation space were positive 0.6% and positive 1.1%, respectively. Tenant improvements and leasing commissions were $7.83 per square foot per annum, or 15.4% of initial rent. -- 74,000 square feet at 555 California Street (52,000 square feet at share) at an initial rent of $114.70 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 48,000 square feet of second generation space were positive 29.5% and positive 25.4%, respectively. Tenant improvements and leasing commissions were $3.94 per square foot per annum, or 3.4% of initial rent.

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

The percentage increase (decrease) 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.

New theMART 555 Total York ^(2) California StreetSame store NOI at share % increase (decrease)^(1):Three months ended September 30, 2021 4.1 % 7.8 % (50.8 ) 3.0 %compared to September 30, 2020 %Nine months ended September 30, 2021 1.9 % 3.2 % (16.9 ) 5.4 %compared to September 30, 2020 %Three months ended September 30, 2021 (1.7 ) 3.7 % (65.1 ) 0.6 %compared to June 30, 2021 % % Same store NOI at share - cash basis % increase (decrease)^(1):Three months ended September 30, 2021 2.8 % 8.1 % (50.9 ) (5.0 )%compared to September 30, 2020 %Nine months ended September 30, 2021 (1.1 ) 0.6 % (20.4 ) (0.7 )%compared to September 30, 2020 % %Three months ended September 30, 2021 (1.1 ) 4.0 % (55.7 ) (1.4 )%compared to June 30, 2021 % %

____________________(1)See pages 14 through 19 for same store NOI at share and same store NOI at share - cash basis reconciliations.(2)The three and nine months ended September 30, 2021 include increases in real estate tax expense of $12,518,000 and $14,441,000, respectively, primarily due to a recent increase in the triennial tax-assessed value of theMART.

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, 2021 and 2020 and the three months ended June 30, 2021 are summarized below.

(Amounts in For the Three Months Ended For the Nine Months Endedthousands) September 30, September 30, 2021 2020 June 30, 2021 2020 2021NOI at share: New York: Office^(1) $ 166,553 $ 159,981 $ 164,050 $ 497,238 $ 504,630 Retail^(2) 49,083 35,294 39,213 124,998 109,153 Residential 4,194 4,536 4,239 12,889 16,604 Alexander's 9,009 6,830 9,069 28,567 25,653 Hotel ? (16,821 ) (5,533 ) (12,677 ) (34,693 )Pennsylvania^(3)Total New York 228,839 189,820 211,038 651,015 621,347 Other: theMART^(4) 6,431 13,171 18,412 42,950 52,087 555 California 16,128 15,618 16,038 48,230 45,686 StreetOther investments 3,873 1,924 4,079 12,751 4,966 Total Other 26,432 30,713 38,529 103,931 102,739 NOI at share $ 255,271 $ 220,533 $ 249,567 $ 754,946 $ 724,086

_______________________(1)The three and nine months ended September 30, 2020 include $4,368 and $17,588, respectively, 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) and $5,112 and $6,052, respectively, of write-offs of tenant receivables deemed uncollectible.(2)The three and nine months ended September 30, 2020 include $4,688 and $25,124, respectively, of non-cash write-offs of receivables arising from the straight-lining of rents (including the JCPenney lease at Manhattan Mall) and $4,668 and $11,399, respectively, of write-offs of tenant receivables deemed uncollectible.(3)On April 5, 2021, we permanently closed the Hotel Pennsylvania. Beginning in the third quarter of 2021, we commenced capitalization of carrying costs in connection with our development of the future PENN 15 (formerly Hotel Pennsylvania) site.(4)The three and nine months ended September 30, 2021 include increases in real estate tax expense of $12,518 and $14,441, respectively, primarily due to a recent increase in the triennial tax-assessed value of theMART.

(Amounts in For the Three Months Ended For the Nine Months Endedthousands) September 30, September 30, 2021 2020 June 30, 2021 2020 2021NOI at share- cash basis:New York: Office^(1) $ 170,521 $ 162,357 $ 167,322 $ 504,939 $ 524,830 Retail^(2) 45,175 36,476 36,214 116,265 124,430 Residential 4,136 4,178 3,751 11,898 15,541 Alexander's 9,790 9,899 9,848 30,987 31,574 HotelPennsylvania ? (16,829 ) (5,556 ) (12,723 ) (34,718 )^(3)Total New 229,622 196,081 211,579 651,366 661,657 YorkOther: theMART^(4) 8,635 17,706 19,501 45,976 58,176 555California 14,745 15,530 14,952 45,552 45,970 StreetOther 4,191 2,197 4,381 13,622 6,530 investmentsTotal Other 27,571 35,433 38,834 105,150 110,676 NOI at share $ 257,193 $ 231,514 $ 250,413 $ 756,516 $ 772,333 - cash basis

______________________(1)The three and nine months ended September 30, 2020 include $5,112 and $6,052, respectively, of write-offs of tenant receivables deemed uncollectible.(2)The three and nine months ended September 30, 2020 include $4,668 and $11,399, respectively, of write-offs of tenant receivables deemed uncollectible.(3)On April 5, 2021, we permanently closed the Hotel Pennsylvania. Beginning in the third quarter of 2021, we commenced capitalization of carrying costs in connection with our development of the future PENN 15 (formerly Hotel Pennsylvania) site.(4)The three and nine months ended September 30, 2021 include increases in real estate tax expense of $12,518 and $14,441, respectively, primarily due to a recent increase in the triennial tax-assessed value of theMART,

PENN District - Active Development/Redevelopment Summary as of September 30, 2021

(Amounts in thousands of dollars, except square feet) Active PENN Property Amount Remainder Stabilization ProjectedDistrict Segment Rentable Budget^(1) Expended to be Year IncrementalProjects Sq. Ft. Expended Cash YieldFarley (95% New 844,000 1,120,000 ^ 906,389 ^ 213,611 2022 6.4 % interest) York (2) (2)PENN 2 - as New 1,795,000 750,000 141,216 608,784 2025 9.0 % expanded^(3) YorkPENN 1(including New ^LIRR York 2,547,000 450,000 304,667 145,333 N/A 12.2 % (4)Concourse (5)Retail)^(4)Districtwide New N/A 100,000 30,805 69,195 N/A N/A Improvements YorkTotal ActivePENN 2,420,000 1,383,077 1,036,923 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).(3)PENN 2 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 and operating expenses on space out of service.(ii)Net of capitalized interest on space out of service under redevelopment.

(4)Property is ground leased through 2098, as fully extended. Fair market 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.(5) Achieved as existing leases roll; approximate average remaining lease term 5.0 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 Tuesday, November 2, 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 50238910. A live webcast of the conference call will be available on Vornados website at www.vno.comin 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, current and future variants, the efficacy and durability of vaccines against the variants and the potential for increased government restrictions, which continue to be 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 September 30, December 31, Increase 2021 2020 (Decrease)ASSETS Real estate, at cost: Land $ 2,528,207 $ 2,420,054 $ 108,153 Buildings and improvements 8,449,768 7,933,030 516,738 Development costs and 1,830,660 1,604,637 226,023 construction in progressLeasehold improvements and 111,233 130,222 (18,989 )equipmentTotal 12,919,868 12,087,943 831,925 Less accumulateddepreciation and (3,309,273 ) (3,169,446 ) (139,827 )amortizationReal estate, net 9,610,595 8,918,497 692,098 Right-of-use assets 337,130 367,365 (30,235 )Cash and cash equivalents 2,128,964 1,624,482 504,482 Restricted cash 139,233 105,887 33,346 Tenant and other receivables 89,606 77,658 11,948 Investments in partially 3,287,870 3,491,107 (203,237 )owned entitiesReal estate fund investments 3,739 3,739 ? 220 Central Park Southcondominium units ready for 77,658 128,215 (50,557 )saleReceivable arising from the 656,137 674,075 (17,938 )straight-lining of rentsDeferred leasing costs, net 386,273 372,919 13,354 Identified intangible 158,438 23,856 134,582 assets, netOther assets 613,157 434,022 179,135 Total assets $ 17,488,800 $ 16,221,822 $ 1,266,978 LIABILITIES, REDEEMABLENONCONTROLLING INTERESTS AND EQUITYLiabilities: Mortgages payable, net $ 6,069,512 $ 5,580,549 $ 488,963 Senior unsecured notes, net 1,189,680 446,685 742,995 Unsecured term loan, net 797,549 796,762 787 Unsecured revolving credit 575,000 575,000 ? facilitiesLease liabilities 372,908 401,008 (28,100 )Accounts payable and accrued 449,768 427,202 22,566 expensesDeferred revenue 50,064 40,110 9,954 Deferred compensation plan 107,860 105,564 2,296 Preferred shares to be 300,000 ? 300,000 redeemed on October 13, 2021Other liabilities 305,946 294,520 11,426 Total liabilities 10,218,287 8,667,400 1,550,887 Redeemable noncontrolling 690,688 606,267 84,421 interestsShareholders' equity 6,294,304 6,533,198 (238,894 )Noncontrolling interests in 285,521 414,957 (129,436 )consolidated subsidiariesTotal liabilities,redeemable noncontrolling $ 17,488,800 $ 16,221,822 $ 1,266,978 interests and equity

VORNADO REALTY TRUSTOPERATING RESULTS (Amounts in For the Three Months For the Nine Months Endedthousands, except per Ended September 30,share amounts) September 30, 2021 2020 2021 2020Revenues $ 409,212 $ 363,962 $ 1,168,130 $ 1,151,520 Net income (loss) $ 71,765 $ 68,736 $ 175,590 $ (253,119 )Less net (income)loss attributable to noncontrollinginterests in:Consolidated (5,425 ) 848 (20,323 ) 141,003 subsidiariesOperating Partnership (2,818 ) (3,884 ) (6,683 ) 10,090 Net income (loss)attributable to 63,522 65,700 148,584 (102,026 )VornadoPreferred share (16,800 ) (12,530 ) (49,734 ) (37,591 )dividendsSeries K preferred (9,033 ) ? (9,033 ) ? share issuance costsNet income (loss)attributable to $ 37,689 $ 53,170 $ 89,817 $ (139,617 )common shareholders Income (loss) per common share - basic:Net income (loss) per $ 0.20 $ 0.28 $ 0.47 $ (0.73 )common shareWeighted average 191,577 191,162 191,508 191,102 shares outstanding Income (loss) percommon share - diluted:Net income (loss) per $ 0.20 $ 0.28 $ 0.47 $ (0.73 )common shareWeighted average 192,041 191,162 192,151 191,102 shares outstanding FFO attributable tocommon shareholdersplus assumed $ 158,286 $ 278,507 $ 430,057 $ 612,123 conversions(non-GAAP)Per diluted share $ 0.82 $ 1.46 $ 2.24 $ 3.20 (non-GAAP) FFO attributable tocommon shareholdersplus assumed $ 136,213 $ 116,698 $ 393,733 $ 370,918 conversions, asadjusted (non-GAAP)Per diluted share $ 0.71 $ 0.61 $ 2.05 $ 1.94 (non-GAAP) Weighted averageshares used indetermining FFOattributable to 192,067 191,188 192,177 191,155 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 certain 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 they exclude 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 income (loss) 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 income (loss) attributable to common shareholders to FFO attributable to common shareholders plus assumed conversions:

(Amounts in thousands, For the Three Months For the Nine Months Endedexcept per share Ended September 30,amounts) September 30, 2021 2020 2021 2020Net income (loss)attributable to common $ 37,689 $ 53,170 $ 89,817 $ (139,617 )shareholdersPer diluted share $ 0.20 $ 0.28 $ 0.47 $ (0.73 ) FFO adjustments: Depreciation andamortization of real $ 86,180 $ 99,045 $ 256,295 $ 269,360 propertyReal estate impairmentlosses in connectionwith the sales of 7,880 ? 7,880 ? Madison Avenue retailpropertiesDecrease in fair value ? ? ? 4,938 of marketable securitiesProportionate share ofadjustments to equity innet income (loss) of partially owned entitiesto arrive at FFO:Depreciation andamortization of real 35,125 38,987 104,829 119,146 propertyDecrease (increase) infair value of marketable 287 385 (1,118 ) 3,511 securitiesNon-cash impairment losson our investment inFifth Avenue and TimesSquare JV, reversing aportion of the $2.559billion gain recognized ? 103,201 ? 409,060 on the April 2019transfer to the jointventure attributable tothe GAAP requiredwrite-up of the retainedinterestNet gain on sale of real ? ? (3,052 ) ? estate 129,472 241,618 364,834 806,015 Noncontrollinginterests' share of (8,886 ) (16,292 ) (24,627 ) (54,311 )above adjustmentsFFO adjustments, net $ 120,586 $ 225,326 $ 340,207 $ 751,704 FFO attributable to 158,275 278,496 430,024 612,087 common shareholdersConvertible preferred 11 11 33 36 share dividendsFFO attributable tocommon shareholders plus $ 158,286 $ 278,507 $ 430,057 $ 612,123 assumed conversionsPer diluted share $ 0.82 $ 1.46 $ 2.24 $ 3.20 Reconciliation ofweighted average shares outstanding:Weighted average common 191,577 191,162 191,508 191,102 shares outstandingEffect of dilutive securities:Out-Performance Plan 452 ? 630 ? unitsConvertible preferred 26 26 26 28 sharesAO LTIP units 8 ? 10 ? Employee stock optionsand restricted stock 4 ? 3 25 awardsDenominator for FFO per 192,067 191,188 192,177 191,155 diluted share

VORNADO REALTY TRUSTNON-GAAP RECONCILIATIONS - CONTINUED

Below is a reconciliation of net income (loss) to NOI at share and NOI at share - cash basis for the three and nine months ended September 30, 2021 and 2020 and the three months ended June 30, 2021.

For the Three Months Ended For the Nine Months Ended(Amounts in September 30, September 30,thousands) 2021 2020 June 30, 2021 2020 2021Net income $ 71,765 $ 68,736 $ 76,832 $ 175,590 $ (253,119 )(loss)Depreciationand 100,867 107,013 89,777 285,998 292,611 amortizationexpenseGeneral andadministrative 25,553 32,407 30,602 100,341 120,255 expenseImpairmentlosses,transactionrelated costsand other 9,681 584 106 10,630 (68,566 )(leaseliabilityextinguishmentgain)(Income) lossfrom partially (26,269 ) 80,909 (31,426 ) (86,768 ) 353,679 owned entitiesLoss (income)from real 66 13,823 (5,342 ) (5,107 ) 225,328 estate fundinvestmentsInterest andotherinvestment (633 ) (1,729 ) (1,539 ) (3,694 ) 7,068 (income) loss,netInterest and 50,946 57,371 51,894 152,904 174,618 debt expenseNet gains ondisposition ofwholly owned (10,087 ) (214,578 ) (25,724 ) (35,811 ) (338,862 )and partiallyowned assetsIncome tax(benefit) (25,376 ) 23,781 2,841 (20,551 ) 38,431 expenseNOI frompartially 75,644 78,175 77,235 231,635 229,543 owned entitiesNOIattributabletononcontrolling (16,886 ) (25,959 ) (15,689 ) (50,221 ) (56,900 )interests inconsolidatedsubsidiariesNOI at share 255,271 220,533 249,567 754,946 724,086 Non-cashadjustmentsforstraight-linerents, 1,922 10,981 846 1,570 48,247 amortizationof acquiredbelow-marketleases, netand otherNOI at share - $ 257,193 $ 231,514 $ 250,413 $ 756,516 $ 772,333 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.

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 September 30, 2021 compared to September 30, 2020.

(Amounts in 555thousands) Total New York theMART^(1) California Other StreetNOI at sharefor thethree months $ 255,271 $ 228,839 $ 6,431 $ 16,128 $ 3,873 endedSeptember30, 2021Less NOI at share from:Change inownershipinterest in (3,780 ) (3,780 ) ? ? ? One ParkAvenueDispositions (224 ) (224 ) ? ? ? Development (5,076 ) (5,076 ) ? ? ? propertiesOthernon-same (6,884 ) (3,011 ) ? ? (3,873 ) storeincome, netSame storeNOI at sharefor thethree months $ 239,307 $ 216,748 $ 6,431 $ 16,128 $ ? endedSeptember30, 2021 NOI at sharefor thethree months $ 220,533 $ 189,820 $ 13,171 $ 15,618 $ 1,924 endedSeptember30, 2020Less NOI at share from:Dispositions 1,797 1,797 ? ? ? Development (5,509 ) (5,509 ) ? ? ? propertiesHotelPennsylvania(permanently 16,821 16,821 ? ? ? closed onApril 5,2021)Othernon-samestore (3,797 ) (1,811 ) (102 ) 40 (1,924 ) (income)expense, netSame storeNOI at sharefor thethree months $ 229,845 $ 201,118 $ 13,069 $ 15,658 $ ? endedSeptember30, 2020 Increase(decrease)in same $ 9,462 $ 15,630 $ (6,638 ) $ 470 $ ? store NOI atshare % increase(decrease)in same 4.1 % 7.8 % (50.8 ) % 3.0 % ? %store NOI atshare

___________________(1)2021 includes an increase in real estate tax expense of $12,518 primarily due to a recent increase in the triennial tax-assessed value of theMART.

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 September 30, 2021 compared to September 30, 2020.

(Amounts in 555thousands) Total New York theMART^(1) California Other StreetNOI at share- cash basisfor thethree months $ 257,193 $ 229,622 $ 8,635 $ 14,745 $ 4,191 endedSeptember30, 2021Less NOI atshare - cash basis from:Change inownershipinterest in (2,695 ) (2,695 ) ? ? ? One ParkAvenueDispositions (678 ) (678 ) ? ? ? Development (5,600 ) (5,600 ) ? ? ? propertiesOthernon-same (6,749 ) (2,558 ) ? ? (4,191 ) storeincome, netSame storeNOI at share- cash basisfor the $ 241,471 $ 218,091 $ 8,635 $ 14,745 $ ? three monthsendedSeptember30, 2021 NOI at share- cash basisfor thethree months $ 231,514 $ 196,081 $ 17,706 $ 15,530 $ 2,197 endedSeptember30, 2020Less NOI atshare - cash basis from:Dispositions 774 774 ? ? ? Development (8,580 ) (8,580 ) ? ? ? propertiesHotelPennsylvania(permanently 16,829 16,829 ? ? ? closed onApril 5,2021)Othernon-same (5,603 ) (3,271 ) (131 ) (4 ) (2,197 ) storeincome, netSame storeNOI at share- cash basisfor the $ 234,934 $ 201,833 $ 17,575 $ 15,526 $ ? three monthsendedSeptember30, 2020 Increase(decrease)in same $ 6,537 $ 16,258 $ (8,940 ) $ (781 ) $ ? store NOI atshare - cashbasis % increase(decrease)in same 2.8 % 8.1 % (50.9 ) % (5.0 ) % ? %store NOI atshare - cashbasis

___________________(1)2021 includes an increase in real estate tax expense of $12,518 primarily due to a recent increase in the triennial tax-assessed value of theMART.

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 nine months ended September 30, 2021 compared to September 30, 2020.

(Amounts in 555thousands) Total New York theMART^(1) California Other StreetNOI at sharefor the ninemonths ended $ 754,946 $ 651,015 $ 42,950 $ 48,230 $ 12,751 September30, 2021Less NOI at share from:Change inownershipinterest in (3,780 ) (3,780 ) ? ? ? One ParkAvenueDispositions 1,246 1,246 ? ? ? Development (19,136 ) (19,136 ) ? ? ? propertiesHotelPennsylvania(permanently 12,677 12,677 ? ? ? closed onApril 5,2021)Othernon-samestore (17,104 ) (4,354 ) ? 1 (12,751 ) (income)expense, netSame storeNOI at sharefor the nine $ 728,849 $ 637,668 $ 42,950 $ 48,231 $ ? months endedSeptember30, 2021 NOI at sharefor the ninemonths ended $ 724,086 $ 621,347 $ 52,087 $ 45,686 $ 4,966 September30, 2020Less NOI at share from:Dispositions 5,109 5,109 ? ? ? Development (26,259 ) (26,259 ) ? ? ? propertiesHotelPennsylvania(permanently 34,692 34,692 ? ? ? closed onApril 5,2021)Othernon-samestore (22,389 ) (17,054 ) (422 ) 53 (4,966 ) (income)expense, netSame storeNOI at sharefor the nine $ 715,239 $ 617,835 $ 51,665 $ 45,739 $ ? months endedSeptember30, 2020 Increase(decrease)in same $ 13,610 $ 19,833 $ (8,715 ) $ 2,492 $ ? store NOI atshare % increase(decrease)in same 1.9 % 3.2 % (16.9 ) % 5.4 % ? %store NOI atshare

___________________(1)2021 includes an increase in real estate tax expense of $14,441 primarily due to a recent increase in the triennial tax-assessed value of theMART.

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 nine months ended September 30, 2021 compared to September 30, 2020.

(Amounts in 555thousands) Total New York theMART^(1) California Other StreetNOI at share- cash basisfor the nine $ 756,516 $ 651,366 $ 45,976 $ 45,552 $ 13,622 months endedSeptember30, 2021Less NOI atshare - cash basis from:Change inownershipinterest in (2,695 ) (2,695 ) ? ? ? One ParkAvenueDispositions 1,545 1,545 ? ? ? Development (20,332 ) (20,332 ) ? ? ? propertiesHotelPennsylvania(permanently 12,724 12,724 ? ? ? closed onApril 5,2021)Othernon-samestore (17,859 ) (4,238 ) ? 1 (13,622 ) (income)expense, netSame storeNOI at share- cash basisfor the nine $ 729,899 $ 638,370 $ 45,976 $ 45,553 $ ? months endedSeptember30, 2021 NOI at share- cash basisfor the nine $ 772,333 $ 661,657 $ 58,176 $ 45,970 $ 6,530 months endedSeptember30, 2020Less NOI atshare - cash basis from:Dispositions (718 ) (718 ) ? ? ? Development (35,372 ) (35,372 ) ? ? ? propertiesHotelPennsylvania(permanently 34,718 34,718 ? ? ? closed onApril 5,2021)Othernon-same (32,745 ) (25,690 ) (422 ) (103 ) (6,530 ) storeincome, netSame storeNOI at share- cash basisfor the nine $ 738,216 $ 634,595 $ 57,754 $ 45,867 $ ? months endedSeptember30, 2020 (Decrease)increase insame store $ (8,317 ) $ 3,775 $ (11,778 ) $ (314 ) $ ? NOI at share- cash basis % (decrease)increase insame store (1.1 ) % 0.6 % (20.4 ) % (0.7 ) % ? %NOI at share- cash basis

___________________(1)2021 includes an increase in real estate tax expense of $14,441 primarily due to a recent increase in the triennial tax-assessed value of theMART.

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 September 30, 2021 compared to June 30, 2021.

(Amounts in 555thousands) Total New York theMART^(1) California Other StreetNOI at sharefor thethree months $ 255,271 $ 228,839 $ 6,431 $ 16,128 $ 3,873 endedSeptember30, 2021Less NOI at share from:Change inownershipinterest in (3,780 ) (3,780 ) ? ? ? One ParkAvenueDispositions (224 ) (224 ) ? ? ? Development (5,076 ) (5,076 ) ? ? ? propertiesOthernon-same (6,523 ) (2,650 ) ? ? (3,873 ) storeincome, netSame storeNOI at sharefor thethree months $ 239,668 $ 217,109 $ 6,431 $ 16,128 $ ? endedSeptember30, 2021 NOI at sharefor thethree months $ 249,567 $ 211,038 $ 18,412 $ 16,038 $ 4,079 ended June30, 2021Less NOI at share from:Dispositions 605 605 ? ? ? Development (7,773 ) (7,773 ) ? ? ? propertiesHotelPennsylvania(permanently 5,533 5,533 ? ? ? closed onApril 5,2021)Othernon-same (4,154 ) (75 ) ? ? (4,079 ) storeincome, netSame storeNOI at sharefor the $ 243,778 $ 209,328 $ 18,412 $ 16,038 $ ? three monthsended June30, 2021 (Decrease)increase in $ (4,110 ) $ 7,781 $ (11,981 ) $ 90 $ ? same storeNOI at share % (decrease)increase in (1.7 ) % 3.7 % (65.1 ) % 0.6 % ? %same storeNOI at share

___________________(1)The three months ended September 30, 2021 includes an increase in real estate tax expense of $12,518 primarily due to a recent increase in the triennial tax-assessed value of theMART.

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 September 30, 2021 compared to June 30, 2021.

(Amounts in 555thousands) Total New York theMART^(1) California Other StreetNOI at share- cash basisfor thethree months $ 257,193 $ 229,622 $ 8,635 $ 14,745 $ 4,191 endedSeptember30, 2021Less NOI atshare - cash basis from:Change inownershipinterest in (2,695 ) (2,695 ) ? ? ? One ParkAvenueDispositions (678 ) (678 ) ? ? ? Development (5,600 ) (5,600 ) ? ? ? propertiesOthernon-same (6,389 ) (2,198 ) ? ? (4,191 ) storeincome, netSame storeNOI at share- cash basisfor the $ 241,831 $ 218,451 $ 8,635 $ 14,745 $ ? three monthsendedSeptember30, 2021 NOI at share- cash basisfor the $ 250,413 $ 211,579 $ 19,501 $ 14,952 $ 4,381 three monthsended June30, 2021Less NOI atshare - cash basis from:Dispositions 573 573 ? ? ? Development (7,465 ) (7,465 ) ? ? ? propertiesHotelPennsylvania(permanently 5,556 5,556 ? ? ? closed onApril 5,2021)Othernon-same (4,568 ) (187 ) ? ? (4,381 ) storeincome, netSame storeNOI at share- cash basisfor the $ 244,509 $ 210,056 $ 19,501 $ 14,952 $ ? three monthsended June30, 2021 (Decrease)increase insame store $ (2,678 ) $ 8,395 $ (10,866 ) $ (207 ) $ ? NOI at share- cash basis % (decrease)increase insame store (1.1 ) % 4.0 % (55.7 ) % (1.4 ) % ? %NOI at share- cash basis

___________________(1)The three months ended September 30, 2021 includes an increase in real estate tax expense of $12,518 primarily due to a recent increase in the triennial tax-assessed value of theMART.