Vornado Realty Trust Sees $0.47 in Costs Weighing on Reported FFO/Share in Q3

Vornado Realty Trust (VNO) said late Tuesday that its financial results for Q3 will include $0.47 in costs against funds from operations per share, though the costs will be excluded from FFO as adjusted.

Vornado said Q3 will include the previously announced $53.6 million in transaction costs in connection with the spin-off of JBG Smith and a $44.5 million non-cash impairment loss on its investment in Pennsylvania REIT (PEI), as required by GAAP because of a sustained trading stock price below the carrying value. Vornado received PEI operating partnership units as part of the sale proceeds of the Springfield Mall in March 2015.

Also, the results will include $7.7 million of negative mark-to-market fair value adjustments from Vornado’s real estate fund and other, smaller costs.

The amounts aggregate to a net loss of $0.51 per diluted share, after non-controlling interests, which will be included in the company’s Q3 net income attributable to common shareholders.

By Matthew Robinson