GlobeNewswire Inc | Aug 3, 2020 04:42PM EDT

August 03, 2020

NEW YORK, Aug. 03, 2020 (GLOBE NEWSWIRE) -- VORNADO REALTY TRUST (NYSE: VNO) reported today:

Quarter Ended June 30, 2020 Financial Results

NET LOSS attributable to common shareholders for the quarter ended June 30, 2020 was $197,750,000, or $1.03 per diluted share, compared to net income attributable to common shareholders of $2.400 billion, or $12.56 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 loss attributable to common shareholders, as adjusted (non-GAAP) for the quarter ended June 30, 2020 was $8,599,000, or $0.04 per share, and net income attributable to common shareholders, as adjusted for the quarter ended June 30, 2019 was $42,552,000, or $0.22 per diluted share.

FUNDS FROM OPERATIONS ("FFO") attributable to common shareholders plus assumed conversions (non-GAAP) for the quarter ended June 30, 2020 was $203,256,000, or $1.06 per diluted share, compared to $164,329,000, or $0.86 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 June 30, 2020 and 2019 was $105,750,000 and $173,775,000, or $0.55 and $0.91 per diluted share, respectively.

Six Months Ended June 30, 2020 Financial Results

NET LOSS attributable to common shareholders for the six months ended June 30, 2020 was $192,787,000, or $1.01 per diluted share, compared to net income attributable to common shareholders of$2.582 billion, or $13.51 per diluted share, for the six months ended June 30, 2019. 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 six months ended June 30, 2020 and 2019 was $10,704,000 and $67,466,000, or $0.06 and $0.35 per diluted share, respectively.

FFO attributable to common shareholders plus assumed conversions (non-GAAP) for the six months ended June 30, 2020 was $333,616,000, or $1.75 per diluted share, compared to $412,013,000, or $2.16 per diluted share, for the six months ended June 30, 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 six months ended June 30, 2020 and 2019 was $242,840,000 and $323,790,000, or $1.27 and $1.70 per diluted share, respectively.

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

(Amounts inthousands, except For the Three Months Ended For the Six Months Endedper share June 30, June 30,amounts) 2020 2019 2020 2019Net (loss) incomeattributable to $ (197,750 ) $ 2,400,195 $ (192,787 ) $ 2,581,683 commonshareholdersPer diluted share $ (1.03 ) $ 12.56 $ (1.01 ) $ 13.51 Certain expense(income) itemsthat impact net(loss) income attributable tocommonshareholders:Non-cashimpairment losson our investmentin Fifth Avenueand Times SquareJV, reversing aportion of the$2.559 billion $ 305,859 $ ? $ 305,859 $ ? gain recognizedon the April 2019transfer to thejoint ventureattributable tothe GAAP requiredwrite-up of theretained interest608 Fifth Avenuenon-cash (leaseliabilityextinguishment (70,260 ) 101,092 (70,260 ) 101,092 gain) impairmentloss and relatedwrite-offsAfter-tax netgain on sale of220 Central Park (49,005 ) (88,921 ) (108,916 ) (219,875 )South ("220 CPS")condominium unitsCredit losses onloans receivableresulting from anew GAAP 6,108 ? 13,369 ? accountingstandardeffective January1, 2020Our share of lossfrom real estate 6,089 20,758 62,247 23,662 fund investmentsNet gain ontransfer to FifthAvenue and TimesSquare retail JV, ? (2,559,154 ) ? (2,559,154 )net of $11,945attributable tononcontrollinginterestsReal estate ? 7,500 ? 7,500 impairment lossesMark-to-market(increase)decrease inPennsylvania RealEstate InvestmentTrust ("PREIT")common shares ? (1,313 ) 4,938 14,336 (accounted for asa marketablesecurity fromMarch 12, 2019and sold onJanuary 23, 2020)Net gain fromsale of UrbanEdge Properties ? ? ? (62,395 )("UE") commonshares (sold onMarch 4, 2019)Prepaymentpenalty inconnection withredemption of ? ? ? 22,540 $400 million5.00% seniorunsecured notesdue January 2022Mark-to-marketincrease inLexington RealtyTrust ? ? ? (16,068 )("Lexington")common shares(sold on March 1,2019)Other 2,019 2,802 9,915 3,954 200,810 (2,517,236 ) 217,152 (2,684,408 )Noncontrollinginterests' share (11,659 ) 159,593 (13,661 ) 170,191 of aboveadjustmentsTotal of certainexpense (income)items that impactnet (loss) income $ 189,151 $ (2,357,643 ) $ 203,491 $ (2,514,217 )attributable tocommonshareholders Net (loss) incomeattributable tocommon $ (8,599 ) $ 42,552 $ 10,704 $ 67,466 shareholders, asadjusted(non-GAAP)Per diluted share $ (0.04 ) $ 0.22 $ 0.06 $ 0.35 (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 For the Six Months Endedexcept per share amounts) Ended June 30, June 30, 2020 2019 2020 2019FFO attributable tocommon shareholders plus $ 203,256 $ 164,329 $ 333,616 $ 412,013 assumed conversions(non-GAAP)^(1)Per diluted share $ 1.06 $ 0.86 $ 1.75 $ 2.16 (non-GAAP) Certain (income) expenseitems that impact FFOattributable to common shareholders plus assumedconversions:608 Fifth Avenue non-cash(lease liabilityextinguishment gain) $ (70,260 ) $ 77,156 $ (70,260 ) $ 77,156 impairment loss andrelated write-offsAfter-tax net gain onsale of 220 CPS (49,005 ) (88,921 ) (108,916 ) (219,875 )condominium unitsCredit losses on loansreceivable resulting froma new GAAP accounting 6,108 ? 13,369 ? standard effectiveJanuary 1, 2020Our share of loss fromreal estate fund 6,089 20,758 62,247 23,662 investmentsPrepayment penalty inconnection withredemption of $400 ? ? ? 22,540 million 5.00% seniorunsecured notes dueJanuary 2022Other 2,459 1,092 6,664 2,298 (104,609 ) 10,085 (96,896 ) (94,219 )Noncontrolling interests'share of above 7,103 (639 ) 6,120 5,996 adjustmentsTotal of certain (income)expense items that impactFFO attributable to $ (97,506 ) $ 9,446 $ (90,776 ) $ (88,223 )common shareholders plusassumed conversions, net FFO attributable tocommon shareholders plus $ 105,750 $ 173,775 $ 242,840 $ 323,790 assumed conversions, asadjusted (non-GAAP)Per diluted share $ 0.55 $ 0.91 $ 1.27 $ 1.70 (non-GAAP)

_________________________________________(1) See page 13 for a reconciliation of our net (loss) income attributable to common shareholders to FFO attributable to common shareholders plus assumed conversions (non-GAAP) for the three and six months ended June 30, 2020 and 2019.

COVID-19 Pandemic

In December 2019, a novel strain of coronavirus (COVID-19) was identified in Wuhan, China and by March 11, 2020, the World Health Organization had declared it a global pandemic. Many states in the U.S., including New York, New Jersey, Illinois and California implemented stay-at-home orders for all "non-essential" business and activity in an aggressive effort to curb the spread of the virus. In May 2020, certain states implemented phased re-opening plans for businesses and activities that were previously ordered to close, with limitations on occupancy and certain other restrictions. It is uncertain as to how long these restrictions will continue or if additional restrictions or closures will be imposed. As a result of the COVID-19 pandemic, the U.S. economy has suffered and there has been significant volatility in the financial markets. Many U.S. industries and businesses have been negatively affected and millions of people have filed for unemployment.

As our first priority, we are following strict protocols and taking all measures to protect our employees, tenants, and communities.

Our properties, which are concentrated in New York City, and in Chicago and San Francisco, have 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 state-mandated reopening plan on June 22, 2020. -- While our buildings remain open, many of our office tenants are working remotely. -- We have temporarily closed the Hotel Pennsylvania. -- We have cancelled trade shows at theMART for the remainder of 2020. -- 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 temporary furlough, which included 1,293 employees of Building Maintenance Services LLC ("BMS"), a wholly owned subsidiary, which provides cleaning, security and engineering services primarily to our New York properties, 414 employees at the Hotel Pennsylvania and 96 corporate staff employees. As of July 31, 2020, 542 employees have been taken off furlough and returned to work, which included 503 employees of BMS and 39 corporate staff employees. -- 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 his or her $75,000 annual cash retainer for the remainder of 2020.

While we believe our tenants are required 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 June 30, 2020, we collected 88% (94% including rent deferrals) of rent due from our tenants, comprised of 93% (98% including rent deferrals) from our office tenants and 72% (78% 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 $36,297,000 of receivables arising from the straight-lining of rents, primarily for the JCPenney lease at Manhattan Mall and the New York & Company, Inc. lease at 330 West 34th Street, both tenants have filed for Chapter 11 bankruptcy, and $8,822,000 of tenant receivables deemed uncollectible, resulting in a reduction of lease revenues and our share of income from partially owned entities for the three and six months ended June 30, 2020. Prospectively, revenue recognition for these tenants 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 the impact could 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 the second quarter of 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 temporary closure of Hotel Pennsylvania, the cancellation of trade shows at theMART through 2020, and lower revenues from BMS and signage. In addition, we have concluded that our investment in Fifth Avenue and Times Square JV is "other-than-temporarily" impaired and recorded a $306,326,000 non-cash impairment loss, before noncontrolling interests of $467,000, on our consolidated statements of income for the second quarter of 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 - Q2 2020 vs. Q2 2019

The following table bridges our FFO attributable to common shareholders plus assumed conversions, as adjusted (non-GAAP) for the three months ended June 30, 2019 to FFO attributable to common shareholders plus assumed conversions, as adjusted (non-GAAP) for the three months ended June 30, 2020:

FFO, as Adjusted Amount Per ShareFFO attributable to common shareholders plus assumedconversions, as adjusted (non-GAAP) for the three $ 173.8 $ 0.91 months ended June 30, 2019 (Decrease) increase in FFO, as adjusted due to: Write-offs of straight-line rent receivables -non-cash ($36.3) and tenant receivables deemed (45.1 ) uncollectible ($8.8)theMART (primarily $8.2 from the cancellation of (13.1 ) trade shows)Hotel Pennsylvania temporary closure since April 1, (12.5 ) 2020PENN District out of service for redevelopment (8.7 ) Lower revenues from BMS ($4.0) and Signage ($2.2) (6.2 ) Asset sales (4.9 ) Interest expense decrease (partially offset by lower 7.5 capitalized interest) and other, netOther tenant related items (primarily lease 5.5 termination income)Lower general and administrative expense 4.4 (73.1 ) Noncontrolling interests' share of above items 5.1 Net decrease (68.0 ) (0.36 ) FFO attributable to common shareholders plus assumedconversions, as adjusted (non-GAAP) for the three $ 105.8 $ 0.55 months ended June 30, 2020

See page 13 for a reconciliation of our net (loss) income attributable to common shareholders to FFO attributable to common shareholders plus assumed conversions (non-GAAP) for the three and six months ended June 30, 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 six months ended June 30, 2020.

220 CPS

During the three months ended June 30, 2020, we closed on the sale of four condominium units at 220 CPS for net proceeds aggregating $156,972,000 resulting in a financial statement net gain of $55,695,000 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, $6,690,000 of income tax expense was recognized on our consolidated statements of income. During the six months ended June 30, 2020, we closed on the sale of 11 condominium units at 220 CPS for net proceeds aggregating $348,188,000 resulting in a financial statement net gain of $124,284,000. In connection with these sales, $15,368,000 of income tax expense was recognized in our consolidated statements of income. From inception to June 30, 2020, we closed on the sale of 76 units for aggregate net proceeds of $2,168,320,000 resulting in financial statement net gains of $809,901,000.

Financings

Unsecured Term Loan

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% (1.18% as of June 30, 2020). The entire $800,000,000 will float thereafter for the duration of the loan through February 2024.

Leasing Activity For The Three Months Ended June 30, 2020:

-- 304,000 square feet of New York Office space (291,000 square feet at share) at an initial rent of $70.71 per square foot and a weighted average lease term of 5.2 years. The initial rent of $70.71 excludes the rent on 174,000 square feet as the starting rent will be determined in 2021 based on fair market value.The change in the GAAP and cash mark-to-market rent on the 82,000 square feet of second generation space were positive 12.1% and 14.1%, respectively. Tenant improvements and leasing commissions were $4.93 per square foot per annum, or 7.0% of initial rent. -- 23,000 square feet of New York Retail space (all at share) at an initial rent of $130.92 per square foot and a weighted average lease term of 3.8 years.The change in the GAAP and cash mark-to-market rent on the 22,000 square feet of second generation space were positive 0.2% and 0.1%, respectively. Tenant improvements and leasing commissions were $8.60 per square foot per annum, or 6.6% of initial rent. -- 42,000 square feet at theMART (all at share) at an initial rent of $56.03 per square foot and a weighted average lease term of 4.1 years.The change in the GAAP and cash mark-to-market rent on the 40,000 square feet of second generation space were negative 0.3% and 3.1%, respectively. Tenant improvements and leasing commissions were $3.34 per square foot per annum, or 6.0% of initial rent. -- 5,000 square feet at 555 California Street (3,000 square feet at share) at an initial rent of $91.00 per square foot and a weighted average lease term of 5.0 years.The change in the GAAP and cash mark-to-market rent on the 3,000 square feet of second generation space were positive 25.7% and 15.0%, respectively. Tenant improvements and leasing commissions were $2.88 per square foot per annum, or 3.2% of initial rent.

Leasing Activity For The Six Months Ended June 30, 2020:

-- 615,000 square feet of New York Office space (588,000 square feet at share) at an initial rent of $84.88 per square foot and a weighted average lease term of 5.9 years. The initial rent of $84.88 excludes the rent on 174,000 square feet as the starting rent will be determined in 2021 based on fair market value.The change in the GAAP and cash mark-to-market rent on the 357,000 square feet of second generation space were negative 0.7% and positive 3.2%, respectively. Tenant improvements and leasing commissions were $8.75 per square foot per annum, or 10.3% of initial rent. -- 38,000 square feet of New York Retail space (36,000 square feet at share) at an initial rent of $236.93 per square foot and a weighted average lease term of 5.9 years.The change in the GAAP and cash mark-to-market rent on the 31,000 square feet of second generation space were positive 55.7% and 48.3%, respectively. Tenant improvements and leasing commissions were $32.88 per square foot per annum, or 13.9% of initial rent. -- 273,000 square feet at theMART (all at share) at an initial rent of $48.64 per square foot and a weighted average lease term of 9.3 years.The change in the GAAP and cash mark-to-market rent on the 268,000 square feet of second generation space were positive 2.0% and negative 1.5%, respectively. Tenant improvements and leasing commissions were $4.39 per square foot per annum, or 9.0% of initial rent. -- 11,000 square feet at 555 California Street (8,000 square feet at share) at an initial rent of $105.66 per square foot and a weighted average lease term of 3.0 years.The change in the GAAP and cash mark-to-market rent on the 8,000 square feet of second generation space were positive 36.7% and 23.7%, respectively. Tenant improvements and leasing commissions were $2.86 per square foot per annum, or 2.7% of initial rent.

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.

theMART^ 555 Total New York (2) California StreetSame store NOI at share % (decrease) increase^(1):Three months ended June 30, (24.5 )% (23.4 )% (42.5 )% (5.0 )%2020 compared to June 30, 2019Six months ended June 30, 2020 (13.9 )% (12.9 )% (29.8 )% 0.1 %compared to June 30, 2019Three months ended June 30,2020 compared to March 31, (20.3 )% (22.0 )% (14.0 )% (4.0 )%2020 Same store NOI at share - cash basis % decrease^(1):Three months ended June 30, (10.8 )% (6.4 )% (44.5 )% (4.3 )%2020 compared to June 30, 2019Six months ended June 30, 2020 (6.3 )% (3.6 )% (30.0 )% (0.4 )%compared to June 30, 2019Three months ended June 30,2020 compared to March 31, (7.8 )% (7.0 )% (20.3 )% (2.1 )%2020

____________________(1) See pages 15 through 20 for same store NOI at share and same store NOI at share - cash basis reconciliations.(2) The decreases in same store NOI at share and same store NOI at share - cash basis were primarily due to the effects of the COVID-19 pandemic, causing trade shows to be cancelled from late March 2020 through the remainder of the year.

NOI At Share:

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

(Amounts in For the Three Months Ended For the Six Months Endedthousands) June 30, June 30, March 31, 2020 2019 2020 2020 2019New York: Office^(1)(2) $ 161,444 $ 179,592 $ 183,205 $ 344,649 $ 363,132 Retail^(1)(3) 21,841 57,063 52,018 73,859 145,330 Residential 5,868 5,908 6,200 12,068 11,953 Alexander'sInc. 8,331 11,108 10,492 18,823 22,430 ("Alexander's")HotelPennsylvania^ (8,516 ) 4,031 (9,356 ) (17,872 ) (1,785 )(4)Total New York 188,968 257,702 242,559 431,527 541,060 Other: theMART^(5) 17,803 30,974 21,113 38,916 54,497 555 California 14,837 15,358 15,231 30,068 29,859 StreetOther 1,032 4,875 2,010 3,042 21,265 investments^(6)Total Other 33,672 51,207 38,354 72,026 105,621 NOI at share $ 222,640 $ 308,909 $ 280,913 $ 503,553 $ 646,681

____________________(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.(2) The three and six months ended June 30, 2020 include $13,220 of non-cash write-offs of receivables arising from the straight-lining of rents, primarily for the New York & Company, Inc. lease at 330 West 34th Street and $940 of write-offs of tenant receivables deemed uncollectible.(3) The three and six months ended June 30, 2020 include $20,436 of non-cash write-offs of receivables arising from the straight-lining of rents, primarily for the JCPenney lease at Manhattan Mall and $6,731 of write-offs of tenant receivables deemed uncollectible. 2019 includes $13,199 of non-cash write-offs of receivables arising from the straight-lining of rents.(4) The decrease in NOI at share is primarily due to the effects of the COVID-19 pandemic. The Hotel Pennsylvania has been temporarily closed since April 1, 2020 as a result of the pandemic.(5) 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 2020 through the remainder of the year.(6) 2019 includes our share of PREIT (accounted for as a marketable security 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 and six months ended June 30, 2020 and 2019 and the three months ended March 31, 2020 are summarized below.

(Amounts in For the Three Months Ended For the Six Months Endedthousands) June 30, June 30, March 31, 2020 2019 2020 2020 2019New York: Office^(1) $ 175,438 $ 178,806 $ 187,035 $ 362,473 $ 363,176 (2)Retail^(1) 38,913 66,726 49,041 87,954 147,662 (3)Residential 5,504 5,303 5,859 11,363 11,074 Alexander's 10,581 11,322 11,094 21,675 22,849 HotelPennsylvania (8,525 ) 3,982 (9,364 ) (17,889 ) (1,882 )^(4)Total New 221,911 266,139 243,665 465,576 542,879 York Other: theMART^(5) 17,765 31,984 22,705 40,470 56,896 555California 15,005 15,595 15,435 30,440 30,340 StreetOtherinvestments^ 2,149 4,939 2,184 4,333 21,133 (6)Total Other 34,919 52,518 40,324 75,243 108,369 NOI at share $ 256,830 $ 318,657 $ 283,989 $ 540,819 $ 651,248 - cash basis

____________________(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.(2) The three and six months ended June 30, 2020 include $940 of write-offs of tenant receivables deemed uncollectible.(3) The three and six months ended June 30, 2020 include $6,731 of write-offs of tenant receivables deemed uncollectible.(4) The decrease in NOI at share - cash basis is primarily due to the effects of the COVID-19 pandemic. The Hotel Pennsylvania has been temporarily closed since April 1, 2020 as a result of the pandemic.(5) 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 from late March 2020 through the remainder of the year.(6) 2019 includes our share of PREIT (accounted for as a marketable security 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 June 30, 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 844,000 1,030,000 ^ 622,844 ^ 407,156 2022 7.4 % interest) York (2) (3)PENN2 - as New 1,795,000 750,000 69,686 680,314 2024 8.4 % expanded^(4) York New ^PENN1^(5) York 2,545,000 325,000 112,089 212,911 N/A 13.5 % (5) (6)Districtwide New N/A 100,000 8,735 91,265 N/A N/A Improvements YorkTotal ActivePenn 2,205,000 813,354 1,391,646 ^ 8.3 % District (7)Projects

________________________________(1) Excluding debt and equity carry. (2) Net of 135,000 of historic tax credit investor contributions, of which 88,000 has been funded to date (at our 95% share). (3) The amount expended has been increased by 60,338 of expenditures and reduced by 88,000 of historic tax credit investor contributions for the three months ended June 30, 2020.(4) PENN2 (including signage) estimated impact on cash basis NOI and FFO of square feet taken out of service:

2020 2021 2022Square feet out of service at end of 1,140,000 1,190,000 1,200,000 yearYear-over-year reduction in Cash Basis (25,000 ) (14,000 ) ? NOI^(i)Year-over-year reduction in FFO^(ii) (19,000 ) ? ?

________________________________(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.

(5) Property is ground leased through 2098, as fully extended. Fair market value resets occur in 2023, 2048 and 2073. The 13.5% projected return is before the ground rent reset in 2023, which may be material.(6) Achieved as existing leases roll; average remaining lease term 4.9 years.(7) Expected to be funded from 220 CPS net sales proceeds and existing cash.

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, August 4, 2020 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 49760489. A live webcast of the conference call will be available on Vornados website atwww.vno.comin the Investor Relations section and an online playback of the webcast will be available on the website following the conference call.

Contact

Joseph Macnow(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, 2019 and "Item 1A. Risk Factors" in Part II of our Quarterly Report on Form 10-Q for the quarterly period ended June 30, 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 will 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, 2019, as well as the risks set forth in "Item 1A. Risk Factors" in Part II of our Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2020.

VORNADO REALTY TRUSTCONSOLIDATED BALANCE SHEETS

(Amounts in thousands, except unit, share, and As ofper share amounts) June 30, 2020 December 31, 2019ASSETS Real estate, at cost: Land $ 2,588,200 $ 2,591,261 Buildings and improvements 7,975,871 7,953,163 Development costs and construction in progress 1,541,432 1,490,614 Moynihan Train Hall development expenditures 1,087,669 914,960 Leasehold improvements and equipment 127,685 124,014 Total 13,320,857 13,074,012 Less accumulated depreciation and amortization (3,106,393 ) (3,015,958 )Real estate, net 10,214,464 10,058,054 Right-of-use assets 376,958 379,546 Cash and cash equivalents 1,768,459 1,515,012 Restricted cash 94,882 92,119 Marketable securities ? 33,313 Tenant and other receivables 118,273 95,733 Investments in partially owned entities 3,648,651 3,999,165 Real estate fund investments 17,453 222,649 220 Central Park South condominium units ready 426,623 408,918 for saleReceivable arising from the straight-lining of 692,931 742,206 rentsDeferred leasing costs, net of accumulated 348,473 353,986 amortization of $186,740 and $196,229Identified intangible assets, net of 27,660 30,965 accumulated amortization of $97,489 and $98,587Other assets 307,620 355,347 $ 18,042,447 $ 18,287,013 LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND EQUITYMortgages payable, net $ 5,638,352 $ 5,639,897 Senior unsecured notes, net 446,279 445,872 Unsecured term loan, net 796,236 745,840 Unsecured revolving credit facilities 1,075,000 575,000 Lease liabilities 426,059 498,254 Moynihan Train Hall obligation 1,087,669 914,960 Special dividend/distribution payable ? 398,292 Accounts payable and accrued expenses 385,956 440,049 Deferred revenue 49,386 59,429 Deferred compensation plan 94,081 103,773 Other liabilities 395,604 265,754 Total liabilities 10,394,622 10,087,120 Commitments and contingencies Redeemable noncontrolling interests: Class A units - 13,773,407 and 13,298,956 units 620,269 884,380 outstandingSeries D cumulative redeemable preferred units 4,535 4,535 - 141,401 units outstandingTotal redeemable noncontrolling partnership 624,804 888,915 unitsRedeemable noncontrolling interest in a 94,112 ? consolidated subsidiaryTotal redeemable noncontrolling interests 718,916 888,915 Shareholders' equity: Preferred shares of beneficial interest: no parvalue per share; authorized 110,000,000 shares; 891,164 891,214 issued and outstanding 36,793,694 and36,795,640 sharesCommon shares of beneficial interest: $0.04 parvalue per share; authorized 250,000,000 shares; 7,625 7,618 issued and outstanding 191,151,142 and190,985,677 sharesAdditional capital 8,095,774 7,827,697 Earnings less than distributions (2,415,500 ) (1,954,266 )Accumulated other comprehensive loss (82,646 ) (40,233 )Total shareholders' equity 6,496,417 6,732,030 Noncontrolling interests in consolidated 432,492 578,948 subsidiariesTotal equity 6,928,909 7,310,978 $ 18,042,447 $ 18,287,013

VORNADO REALTY TRUSTOPERATING RESULTS

(Amounts in For the Three Months Ended For the Six Months Endedthousands, except June 30, June 30,per share amounts) 2020 2019 2020 2019Revenues $ 343,026 $ 463,103 $ 787,558 $ 997,771 (Loss) income fromcontinuing $ (217,352 ) $ 2,596,633 $ (321,855 ) $ 2,809,814 operationsIncome (loss) fromdiscontinued ? 60 ? (77 )operationsNet (loss) income (217,352 ) 2,596,693 (321,855 ) 2,809,737 Less net loss(income)attributable to noncontrollinginterests in:Consolidated 17,768 (21,451 ) 140,155 (28,271 )subsidiariesOperating 14,364 (162,515 ) 13,974 (174,717 )PartnershipNet (loss) incomeattributable to (185,220 ) 2,412,727 (167,726 ) 2,606,749 VornadoPreferred share (12,530 ) (12,532 ) (25,061 ) (25,066 )dividendsNet (loss) incomeattributable to $ (197,750 ) $ 2,400,195 $ (192,787 ) $ 2,581,683 common shareholders (Loss) income percommon share - basic:Net (loss) income $ (1.03 ) $ 12.58 $ (1.01 ) $ 13.53 per common shareWeighted average 191,104 190,781 191,071 190,735 shares outstanding (Loss) income percommon share - diluted:Net (loss) income $ (1.03 ) $ 12.56 $ (1.01 ) $ 13.51 per common shareWeighted average 191,104 191,058 191,071 191,030 shares outstanding FFO attributable tocommon shareholdersplus assumed $ 203,256 $ 164,329 $ 333,616 $ 412,013 conversions(non-GAAP)Per diluted share $ 1.06 $ 0.86 $ 1.75 $ 2.16 (non-GAAP) FFO attributable tocommon shareholdersplus assumed $ 105,750 $ 173,775 $ 242,840 $ 323,790 conversions, asadjusted (non-GAAP)Per diluted share $ 0.55 $ 0.91 $ 1.27 $ 1.70 (non-GAAP) Weighted averageshares used indetermining FFOattributable to 191,132 191,058 191,107 191,026 common shareholdersplus assumedconversions perdiluted share

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 inthousands, except For the Three Months Ended For the Six Months Endedper share June 30, June 30,amounts) 2020 2019 2020 2019Reconciliation ofour net (loss)incomeattributable tocommonshareholders to FFO attributableto commonshareholders plusassumedconversions:Net (loss) incomeattributable to $ (197,750 ) $ 2,400,195 $ (192,787 ) $ 2,581,683 commonshareholdersPer diluted share $ (1.03 ) $ 12.56 $ (1.01 ) $ 13.51 FFO adjustments: Depreciation andamortization of $ 85,179 $ 105,453 $ 170,315 $ 213,936 real propertyNet gain ontransfer to FifthAvenue and TimesSquare JV onApril 18, 2019, ? (2,559,154 ) ? (2,559,154 )net of $11,945attributable tononcontrollinginterestsReal estate ? 31,436 ? 31,436 impairment lossesNet gain fromsale of UE common ? ? ? (62,395 )shares (sold onMarch 4, 2019)(Increase)decrease in fairvalue of marketablesecurities:PREIT (accountedfor as amarketablesecurity from ? (1,313 ) 4,938 14,336 March 12, 2019and sold onJanuary 23, 2020)Lexington (sold ? ? ? (16,068 )on March 1, 2019)Other ? 1 ? (41 )Proportionateshare ofadjustments toequity in net income ofpartially ownedentities toarrive at FFO:Non-cashimpairment losson our investmentin Fifth Avenueand Times SquareJV, reversing aportion of the$2.559 billion 305,859 ? 305,859 ? gain recognizedon the April 2019transfer to thejoint ventureattributable tothe GAAP requiredwrite-up of theretained interestDepreciation andamortization of 39,736 34,631 80,159 59,621 real property(Increase)decrease in fairvalue of (565 ) 1,709 3,126 1,697 marketablesecurities 430,209 (2,387,237 ) 564,397 (2,316,632 )Noncontrollinginterests' share (29,215 ) 151,357 (38,019 ) 146,933 of aboveadjustmentsFFO adjustments, $ 400,994 $ (2,235,880 ) $ 526,378 $ (2,169,699 )net FFO attributableto common 203,244 164,315 333,591 411,984 shareholdersConvertiblepreferred share 12 14 25 29 dividendsFFO attributableto commonshareholders plus $ 203,256 $ 164,329 $ 333,616 $ 412,013 assumedconversionsPer diluted share $ 1.06 $ 0.86 $ 1.75 $ 2.16 Reconciliation ofweighted average sharesoutstanding:Weighted averagecommon shares 191,104 190,781 191,071 190,735 outstandingEffect ofdilutive securities:Convertible 28 34 29 35 preferred sharesEmployee stockoptions and ? 243 2 256 restricted shareawardsAO LTIPs ? ? 5 ? Denominator forFFO per diluted 191,132 191,058 191,107 191,026 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. A reconciliation of our net income attributable to common shareholders to FFO attributable to common shareholders plus assumed conversions is provided above. 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 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 - CONTINUED

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

For the Three Months Ended For the Six Months Ended(Amounts in June 30, March 31, June 30,thousands) 2020 2020 2019 2020 2019Net (loss) $ (217,352 ) $ 2,596,693 $ (104,503 ) $ (321,855 ) $ 2,809,737 incomeDepreciationand 92,805 113,035 92,793 185,598 229,744 amortizationexpenseGeneral andadministrative 35,014 38,872 52,834 87,848 96,892 expense(Leaseliabilityextinguishmentgain) (69,221 ) 101,590 71 (69,150 ) 101,739 transactionrelated costsand impairmentlossesLoss (income)from partially 291,873 (22,873 ) (19,103 ) 272,770 (30,193 )owned entitiesLoss from realestate fund 28,042 15,803 183,463 211,505 15,970 investmentsInterest andotherinvestment 2,893 (7,840 ) 5,904 8,797 (12,885 )loss (income),netInterest and 58,405 63,029 58,842 117,247 165,492 debt expenseNet gain ontransfer toFifth Avenue ? (2,571,099 ) ? ? (2,571,099 )and TimesSquare JVNet gains ondisposition ofwholly owned (55,695 ) (111,713 ) (68,589 ) (124,284 ) (332,007 )and partiallyowned assetsIncome tax 1,837 26,914 12,813 14,650 56,657 expense(Income) lossfrom ? (60 ) ? ? 77 discontinuedoperationsNOI frompartially 69,487 82,974 81,881 151,368 150,376 owned entitiesNOIattributabletononcontrolling (15,448 ) (16,416 ) (15,493 ) (30,941 ) (33,819 )interests inconsolidatedsubsidiariesNOI at share 222,640 308,909 280,913 503,553 646,681 Non cashadjustmentsforstraight-linerents, 34,190 9,748 3,076 37,266 4,567 amortizationof acquiredbelow-marketleases, netand otherNOI at share - $ 256,830 $ 318,657 $ 283,989 $ 540,819 $ 651,248 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 June 30, 2020 compared to June 30, 2019.

(Amounts in 555thousands) Total New York theMART California Other StreetNOI at sharefor thethree months $ 222,640 $ 188,968 $ 17,803 $ 14,837 $ 1,032 ended June30, 2020Less NOI at share from:Development (7,376 ) (7,372 ) ? (4 ) ? propertiesHotelPennsylvania(temporarilyclosed 8,516 8,516 ? ? ? beginningApril 1,2020)Othernon-same (9,373 ) (8,283 ) ? (58 ) (1,032 )storeincome, netSame storeNOI at sharefor the $ 214,407 $ 181,829 $ 17,803 $ 14,775 $ ? three monthsended June30, 2020 NOI at sharefor thethree months $ 308,909 $ 257,702 $ 30,974 $ 15,358 $ 4,875 ended June30, 2019Less NOI at share from:Change inownershipinterests inpropertiescontributed (5,479 ) (5,479 ) ? ? ? to FifthAvenue andTimes SquareJVDispositions (3,696 ) (3,696 ) ? ? ? Development (14,538 ) (14,538 ) ? ? ? propertiesHotelPennsylvania(temporarilyclosed (4,031 ) (4,031 ) ? ? ? beginningApril 1,2020)Othernon-samestore 2,792 7,459 6 202 (4,875 )expense(income),netSame storeNOI at sharefor the $ 283,957 $ 237,417 $ 30,980 $ 15,560 $ ? three monthsended June30, 2019 Decrease insame storeNOI at sharefor thethree months $ (69,550 ) $ (55,588 ) $ (13,177 ) $ (785 ) $ ? ended June30, 2020compared toJune 30,2019 % decreasein same (24.5 ) (23.4 ) (42.5 ) ^ (5.0 ) ? %store NOI at % % % (1) %share

____________________(1) The decrease is primarily due to the effects of the COVID-19 pandemic, causing trade shows to be cancelled from late March 2020 through the remainder of the year.

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 June 30, 2020 compared to June 30, 2019.

(Amounts in 555thousands) Total New York theMART California Other StreetNOI at share- cash basisfor the $ 256,830 $ 221,911 $ 17,765 $ 15,005 $ 2,149 three monthsended June30, 2020Less NOI atshare - cash basis from:Development (9,475 ) (9,471 ) ? (4 ) ? propertiesHotelPennsylvania(temporarilyclosed 8,525 8,525 ? ? ? beginningApril 1,2020)Othernon-samestore (13,174 ) (11,072 ) ? 47 (2,149 )(income)expense, netSame storeNOI at share- cash basisfor the $ 242,706 $ 209,893 $ 17,765 $ 15,048 $ ? three monthsended June30, 2020 NOI at share- cash basisfor the $ 318,657 $ 266,139 $ 31,984 $ 15,595 $ 4,939 three monthsended June30, 2019Less NOI atshare - cash basis from:Change inownershipinterests inpropertiescontributed (5,183 ) (5,183 ) ? ? ? to FifthAvenue andTimes SquareJVDispositions (3,879 ) (3,879 ) ? ? ? Development (23,364 ) (23,364 ) ? ? ? propertiesHotelPennsylvania(temporarilyclosed (3,982 ) (3,982 ) ? ? ? beginningApril 1,2020)Othernon-samestore (10,214 ) (5,409 ) 6 128 (4,939 )(income)expense, netSame storeNOI at share- cash basisfor the $ 272,035 $ 224,322 $ 31,990 $ 15,723 $ ? three monthsended June30, 2019 Decrease insame storeNOI at share- cash basisfor thethree months $ (29,329 ) $ (14,429 ) $ (14,225 ) $ (675 ) $ ? ended June30, 2020compared toJune 30,2019 % decreasein same ) ) ) ^ )store NOI at (10.8 % (6.4 % (44.5 % (1) (4.3 % ? %share - cashbasis

____________________(1) The decrease is primarily due to the effects of the COVID-19 pandemic, causing trade shows to be cancelled from late March 2020 through the remainder of the year.

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 June 30, 2020 compared to March 31, 2020.

(Amounts in 555thousands) Total New York theMART California Other StreetNOI at sharefor the three $ 222,640 $ 188,968 $ 17,803 $ 14,837 $ 1,032 months endedJune 30, 2020Less NOI at share from:Development (7,380 ) (7,376 ) ? (4 ) ? propertiesHotelPennsylvania(temporarilyclosed 8,516 8,516 ? ? ? beginningApril 1,2020)Othernon-same (9,010 ) (7,920 ) ? (58 ) (1,032 )store income,netSame storeNOI at sharefor the three $ 214,766 $ 182,188 $ 17,803 $ 14,775 $ ? months endedJune 30, 2020 NOI at sharefor the threemonths ended $ 280,913 $ 242,559 $ 21,113 $ 15,231 $ 2,010 March 31,2020Less NOI at share from:Development (12,996 ) (12,996 ) ? ? ? propertiesHotelPennsylvania(temporarilyclosed 9,356 9,356 ? ? ? beginningApril 1,2020)Othernon-samestore (7,705 ) (5,434 ) (422 ) 161 (2,010 )(income)expense, netSame storeNOI at sharefor the three $ 269,568 $ 233,485 $ 20,691 $ 15,392 $ ? months endedMarch 31,2020 Decrease insame storeNOI at sharefor the threemonths ended $ (54,802 ) $ (51,297 ) $ (2,888 ) $ (617 ) $ ? June 30, 2020compared toMarch 31,2020 % decrease in ) ) ) ^ )same store (20.3 % (22.0 % (14.0 % (1) (4.0 % ? %NOI at share

____________________(1) The decrease is primarily due to the effects of the COVID-19 pandemic, causing trade shows to be cancelled from late March 2020 through the remainder of the year.

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 June 30, 2020 compared to March 31, 2020.

(Amounts in 555thousands) Total New York theMART California Other StreetNOI at share- cash basisfor the three $ 256,830 $ 221,911 $ 17,765 $ 15,005 $ 2,149 months endedJune 30, 2020Less NOI atshare - cash basis from:Development (9,478 ) (9,474 ) ? (4 ) ? propertiesHotelPennsylvania(temporarilyclosed 8,525 8,525 ? ? ? beginningApril 1,2020)Othernon-samestore (12,772 ) (10,670 ) ? 47 (2,149 )(income)expense, netSame storeNOI at share- cash basis $ 243,105 $ 210,292 $ 17,765 $ 15,048 $ ? for the threemonths endedJune 30, 2020 NOI at share- cash basisfor the three $ 283,989 $ 243,665 $ 22,705 $ 15,435 $ 2,184 months endedMarch 31,2020Less NOI atshare - cash basis from:Development (17,024 ) (17,024 ) ? ? ? propertiesHotelPennsylvania(temporarilyclosed 9,364 9,364 ? ? ? beginningApril 1,2020)Othernon-same (12,521 ) (9,858 ) (422 ) (57 ) (2,184 )store income,netSame storeNOI at share- cash basisfor the three $ 263,808 $ 226,147 $ 22,283 $ 15,378 $ ? months endedMarch 31,2020 Decrease insame storeNOI at share- cash basisfor the three $ (20,703 ) $ (15,855 ) $ (4,518 ) $ (330 ) $ ? months endedJune 30, 2020compared toMarch 31,2020 % decrease insame store (7.8 ) (7.0 ) (20.3 ) ^ (2.1 ) ? %NOI at share % % % (1) %- cash basis

____________________(1) The decrease is primarily due to the effects of the COVID-19 pandemic, causing trade shows to be cancelled from late March 2020 through the remainder of the year.

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 six months ended June 30, 2020 compared to June 30, 2019.

(Amounts in 555thousands) Total New York theMART California Other StreetNOI at sharefor the sixmonths ended $ 503,553 $ 431,527 $ 38,916 $ 30,068 $ 3,042 June 30,2020Less NOI at share from:Development (21,642 ) (21,638 ) ? (4 ) ? propertiesHotelPennsylvania(temporarilyclosed 8,516 8,516 ? ? ? beginningApril 1,2020)Othernon-samestore (17,533 ) (14,172 ) (422 ) 103 (3,042 )(income)expense, netSame storeNOI at sharefor the six $ 472,894 $ 404,233 $ 38,494 $ 30,167 $ ? months endedJune 30,2020 NOI at sharefor the sixmonths ended $ 646,681 $ 541,060 $ 54,497 $ 29,859 $ 21,265 June 30,2019Less NOI at share from:Change inownershipinterests inpropertiescontributed (35,770 ) (35,770 ) ? ? ? to FifthAvenue andTimes SquareJVDispositions (7,096 ) (7,096 ) ? ? ? Development (35,131 ) (35,131 ) ? ? ? propertiesHotelPennsylvania(temporarilyclosed (4,031 ) (4,031 ) ? ? ? beginningApril 1,2020)Othernon-samestore (15,586 ) 5,054 345 280 (21,265 )(income)expense, netSame storeNOI at sharefor the six $ 549,067 $ 464,086 $ 54,842 $ 30,139 $ ? months endedJune 30,2019 (Decrease)increase insame storeNOI at sharefor the sixmonths ended $ (76,173 ) $ (59,853 ) $ (16,348 ) $ 28 $ ? June 30,2020compared toJune 30,2019 % (decrease)increase in (13.9 ) (12.9 ) (29.8 ) ^ 0.1 % ? %same store % % % (1)NOI at share

____________________(1) The decrease is primarily due to the effects of the COVID-19 pandemic, causing trade shows to be cancelled from late March 2020 through the remainder of the year.

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 six months ended June 30, 2020 compared to June 30, 2019.

(Amounts in 555thousands) Total New York theMART California Other StreetNOI at share- cash basisfor the six $ 540,819 $ 465,576 $ 40,470 $ 30,440 $ 4,333 months endedJune 30,2020Less NOI atshare - cash basis from:Development (27,591 ) (27,587 ) ? (4 ) ? propertiesHotelPennsylvania(temporarilyclosed 8,525 8,525 ? ? ? beginningApril 1,2020)Othernon-same (26,130 ) (21,366 ) (422 ) (9 ) (4,333 )storeincome, netSame storeNOI at share- cash basisfor the six $ 495,623 $ 425,148 $ 40,048 $ 30,427 $ ? months endedJune 30,2020 NOI at share- cash basisfor the six $ 651,248 $ 542,879 $ 56,896 $ 30,340 $ 21,133 months endedJune 30,2019Less NOI atshare - cash basis from:Change inownershipinterests inpropertiescontributed (32,905 ) (32,905 ) ? ? ? to FifthAvenue andTimes SquareJVDispositions (7,460 ) (7,460 ) ? ? ? Development (47,703 ) (47,703 ) ? ? ? propertiesHotelPennsylvania(temporarilyclosed (3,982 ) (3,982 ) ? ? ? beginningApril 1,2020)Othernon-samestore (30,379 ) (9,797 ) 345 206 (21,133 )(income)expense, netSame storeNOI at share- cash basisfor the six $ 528,819 $ 441,032 $ 57,241 $ 30,546 $ ? months endedJune 30,2019 Decrease insame storeNOI at share- cash basisfor the sixmonths ended $ (33,196 ) $ (15,884 ) $ (17,193 ) $ (119 ) $ ? June 30,2020compared toJune 30,2019 % decreasein same ) ) ) ^ )store NOI at (6.3 % (3.6 % (30.0 % (1) (0.4 % ? %share - cashbasis

____________________(1) The decrease is primarily due to the effects of the COVID-19 pandemic, causing trade shows to be cancelled from late March 2020 through the remainder of the year.