Vornado Realty Trust Q2 FY2025 earnings call

• Expressed sorrow over the shootings at 345 Park Avenue. - Manhattan is a strong real estate market with tight Class A availability, predicting potential rental growth. - Leased 2.7 million sq ft overall in H1 2025, including a large NYU lease. - PENN District had leasing activity like Verizon's 203,000 sq ft lease, occupancy at PENN 1 at 91%, and Samsung expanding at PENN 1. - Completed financing transactions: $450 million financing of 1535 Broadway, refinancing of Independence Plaza and PENN 11, delevered balance sheet with $1.5 billion net proceeds from sales. - Redevelopment of 350 Park Avenue with Citadel as anchor tenant.

Vornado Realty Trust's business is predominantly New York-centric. In the second quarter, Manhattan office leasing was robust with 2.7 million sq ft leased in the first half of 2025, including a 1.1 million sq ft master lease with NYU. The PENN District saw significant leasing activity, such as a 203,000 sq ft lease with Verizon. Financials showed comparable FFO of $0.56 per share, lower net interest income from retail preferred repayments was offset by lower real estate taxes at THE MART. THE MART and 555 California are considered for sale at the right price.

• Anticipate significant earnings growth from lease-up of PENN 1 and PENN 2 by 2027. - Expect rental growth in PENN District as market rents increase. - Cash NOI lower this quarter due to one-time PENN 1 ground rent true-up and free rent from new leases. - New York office occupancy expected to increase to low 90s over next year.

• Ground lessor filed a motion in New York County Supreme Court to vacate the rent reset panel ground rent determination for PENN 1, which Vornado intends to oppose. - Potential impacts of market changes on the valuation and sale of THE MART and 555 California.

Q: About leasing pipeline breakdown at PENN 2 A: Glen Weiss said ~50% of ~1.4 million sq ft pipeline is at PENN 2 Q: About selling THE MART and 555 California A: Steven Roth said they are valuable and may be sold at the right price Q: About physical occupancy and rent coming online A: Michael Franco said need to get back with specific numbers, but occupancy impacted by retail vacancies Q: About PENN District NOI upside A: Steven Roth said potential $250 million increment in income with $10/ft rent increase on 5 million sq ft Q: About timing of selling THE MART and 555 California A: Steven Roth said not imminent, opportunistic Q: About net effective rents and leasing commissions A: Glen Weiss said TIs stabilized, free rent coming down Q: About dividend thoughts A: Michael Franco said Board will decide, but expecting at least $0.74/share in 2025 and potential for normalized dividend