Camille Bonnel

Camille Bonnel requested more details on the 623 Fifth Avenue acquisition, specifically confirming if it is projected to add $0.11 to FFO, and inquired about the development costs and financing expectations for the project.

Answer

Steven Roth, Chairman and CEO, expressed enthusiasm for 623 Fifth Avenue, describing it as the "best acquisition ever." He projected the finished product to cost approximately $1,200 per foot, yielding a 10% return, and potentially generating slightly more than $0.11 incremental FFO. Steven Borenstein, EVP and Corporate Counsel, added that the $200 million project is easily financeable, will be delivered to tenants by the end of 2027 (half the time and cost of a new build), and will be retained in Vornado's portfolio.

Camille Bonnel asked for more details on the 623 Fifth Avenue acquisition, specifically how the projected 11 cents incremental FFO contribution is derived, and inquired about the development costs and financing expectations for the project.

Answer

Steven Roth, Chairman and CEO, expressed enthusiasm for 623 Fifth Avenue, detailing that the $1,200 per foot all-in cost, combined with a projected 10% return on cost, could yield a double on equity or a "4-bagger" with leverage, translating to over $0.11 incremental FFO. He explained the project is easily financeable, will be delivered by end of 2027 at less than half the time and cost of a new build, and will be retained in the portfolio.

Asked if the 770 Broadway deal was recent, inquired about activity from large office users, and asked about the outlook for taxable income and distributions following recent dispositions.

Answer

The 770 Broadway deal was included in the previously mentioned pipeline. Leasing activity is strong across the portfolio, with a notable increase in 'bread-and-butter' tenants (10k-30k sq ft). The outlook for taxable income and distributions remains uncertain pending the closing of various transactions.

Jing Xian Tan, on behalf of Camille Bonnel at Bank of America, asked if the 770 Broadway deal was in the prior quarter's pipeline, inquired about leasing activity from large office users, and asked for the latest outlook on taxable income and distributions.

Answer

Executive Glen Weiss confirmed the 770 Broadway transaction was included in the pipeline figures and noted that activity from 'bread-and-butter' tenants (10k-30k sq. ft.) is increasing. President and CFO Michael Franco stated that the outlook for taxable income and potential distributions remains uncertain and depends on transaction closings later in the year.

Camille Bonnel from Bank of America asked if the 770 Broadway deal was a recent development, sought details on large-user office activity, and inquired about the outlook for taxable income and distributions.

Answer

Glen Weiss, an executive, confirmed the 770 Broadway transaction was included in the previously mentioned pipeline and noted a rise in activity from 'bread-and-butter' tenants (10k-30k sq ft). Michael Franco, President & CFO, stated that the outlook for taxable income and distributions remains uncertain and is contingent on the timing and finalization of various transactions this year.