[ACCESSWIRE]
Upcoming AWS Coverage on Annaly Capital Management Post-Earnings Results
LONDON, UK / ACCESSWIRE / February 17, 2017 / Active Wall St. announces its post-earnings coverage on Vornado Realty Trust (NYSE: VNO). The Company reported its financial results for the fourth quarter and fiscal 2016 results on February 13, 2017. The Diversified REIT's net income more than doubled. Register with us now for your free membership at: http://www.activewallst.com/register/.
One of Vornado Realty Trust's competitors within the REIT - Diversified space, Annaly Capital Management, Inc. (NYSE: NLY), announced on February 01, 2017, that it will release its financial results for the quarter and year ended December 31, 2016, after the market close on Wednesday, February 15, 2017. The Company will conduct a conference call and audio webcast to discuss the results on Thursday, February 16, 2017 at 10:00 a.m. ET. AWS will be initiating a research report on Annaly Capital Management in the coming days.
Today, AWS is promoting its earnings coverage on VNO; touching on NLY. Get our free coverage by signing up to:
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Earnings Reviewed
For the three months ended December 31, 2016, Vornado generated total revenue of $638.2 million, down 2% compared to revenue of $651.58 million in Q4 2015, exceeding analysts' consensus of $627 million. For FY16, the Company posted total revenue of $2.51 billion compared to total revenue of $2.51 billion for FY15.
During Q4 2016, Vornado completed more than 625,000 square feet of leasing activity, with its year-end occupancy at 96.3%, up 80 basis points over Q3 2016. During the reported quarter, the Company achieved average starting rents of $77 per square foot.
For Q4 2016, Vornado reported net income attributable to common shareholders of $651.2 million, or $3.43 per diluted share, compared to $230.7 million, or $1.22 per diluted share, for Q4 2015. On an adjusted basis, the Company's net income attributable to common shareholders for Q4 2016 and Q4 2015 was $56.7 million and $86.4 million, or $0.30 and $0.46 per diluted share, respectively.
For Q4 2016, Vornado's Funds From Operations attributable to common shareholders plus assumed conversions ("FFO") for Q4 2016 was $797.7 million, or $4.20 per diluted share, compared to $259.5 million, or $1.37 per diluted share, for Q4 2015. Adjusted FFO for Q4 2016 was $214.7 million, or $1.13 per diluted share, missing Wall Street's forecasts for FFO of $1.26 per share.
FY16 Results
Net income attributable to Vornado's common shareholders for FY16 was $823.6 million, or $4.34 per diluted share, compared to $679.9 million, or $3.59 per diluted share, for the prior year. The Company's FFO for the year ended December 31, 2016 was $1,457.6 million, or $7.66 per diluted share, compared to $1,039.0 million, or $5.48 per diluted share, for the prior year.
Segment Results
Washington, DC Segment: Excluding the Skyline Properties which were disposed of on December 21, 2016, Vornado's Washington, DC segment EBITDA as adjusted was $290,500,000 for the year ended December 31, 2016.
New York: Vornado's New York business same-store EBITDA increased 7.8% on GAAP basis. Excluding Hotel Pennsylvania, the numbers were came in at 9.2%. Vornado's New York office portfolio ended the year at 96.3% occupancy.
In FY16, Vornado leased 2,240,000 square feet of office space, including 302,000 square feet in Long Island City, in 148 transactions across its New York portfolio. The Company achieved average starting rents of $78.97 per square foot in New York, $39.84 in Long Island City.
Washington, DC Spin-off
On October 31, 2016, Vornado's Board of Trustees approved the tax-free spin-off of its Washington, DC segment and the Company entered into a definitive agreement to merge it with the business and certain select assets of The JBG Companies. The combined Company will be named JBG SMITH Properties and will be the largest, market-leading, best-in-class, pure-play Washington, DC real estate Company.
Vornado's shareholders are expected to own approximately 74% of the combined Company. The combined Company's portfolio will consist of 50 office properties totaling approximately 11.8 million square feet, 18 multifamily properties with 4,451 residential units, and 11 other properties totaling approximately 0.7 million square feet. JBG SMITH will be the largest landlord to the US Government in the nation's capital. The Company expect to complete the spin-off of the Washington, DC segment in Q2 2017. Vornado expects that Washington, DC's EBITDA as adjusted during H1 2017 will be lower than the H1 2016 by approximately $1,000,000 to $5,000,000.
On February 13th, 2017, Vornado announced that Stephen W. Theriot, 57, Vornado's Chief Financial Officer since 2013, will transfer to Washington DC to become Chief Financial Officer of JBG SMITH Properties, effective February 15, 2017. Joseph Macnow, 71, Vornado's Executive Vice President -- Finance and Chief Administrative Officer and its long-time Chief Financial Officer prior to Mr. Theriot, will return as Chief Financial Officer on an interim basis, also effective February 15, 2017. Mr. Macnow will serve in this role while Vornado conducts a search for a Chief Financial Officer.
Dispositions
On August 24, 2016, the Skyline properties, located in Fairfax, Virginia, were placed in receivership. On December 21, 2016, the final disposition of the Skyline properties was completed by the receiver. In connection therewith, the Skyline properties' assets approximately $236.54 million and liabilities approximately $724.41 million were removed from our consolidated balance sheet which resulted in a net gain of $487.88 million.
Financing Activities
On November 07, 2016, Vornado extended one of its two $1.25 billion unsecured revolving credit facilities from June 2017 to February 2021 with two six-month extension options. The interest rate on the extended facility was lowered from LIBOR plus 115 basis points to LIBOR plus 100 basis points. The facility fee remains unchanged at 20 basis points.
On December 02, 2016, Vornado completed a $400.00 million refinancing of 350 Park Avenue, a 571,000 square foot Manhattan office building. The ten-year loan is interest only and has a fixed rate of 3.92%. The Company realized net proceeds of approximately $111.00 million.
Stock Performance
At the closing bell, on Thursday, February 16, 2017, Vornado Realty Trust's stock was marginally up by 0.86%, ending the trading session at $109.98. A total volume of 909.35 thousand shares were traded at the end of the day. In the last three months and previous twelve months, shares of the Company have advanced 14.89% and 33.96%, respectively. Moreover, the stock gained 6.07% since the start of the year. The stock is trading at a PE ratio of 52.98 and has a dividend yield of 2.58%.
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SOURCE: Active Wall Street