Vornado Realty Trust : 01/23/2019 Vornado Announces Certain Items to be Included in its Fourth Quarter 2018 Financial Results

$5.5 million of net loss ($1.7 million of negative FFO) from other items

In accordance with the National Association of Real Estate Investment Trusts ('NAREIT') December 2018 restated definition of FFO, Vornado has elected to exclude the mark-to-market adjustments of marketable equity securities from the calculation of FFO. Vornado's FFO for the nine months ended September 30, 2018 has been adjusted to exclude the $26.6 million or $0.13 per share decrease in fair value of marketable equity securities previously reported. 'Net income attributable to common shareholders' for the fourth quarter and year ended December 31, 2018 will include $3.7 million and $30.3 million, respectively, of decrease in fair value of marketable equity securities (not included in 'net income attributable to common shareholders, as adjusted').

Further, in the fourth quarter of 2018, the tax-assessed value of theMART increased and as a result, 2018 real estate tax expense will be approximately $12 million, or $0.06 per share, higher than previously estimated. Accordingly, 'net income attributable to common shareholders,' 'net income attributable to common shareholders, as adjusted,' 'FFO attributable to common shareholders plus assumed conversions' and 'FFO attributable to common shareholders plus assumed conversions, as adjusted' for the quarter ended December 31, 2018 includes the additional real estate tax expense. In summary, the increase in real estate taxes accrued and expensed in 2018, will be paid in 2019 and approximately 80% reimbursed by tenants in 2019.

The above amounts are preliminary estimates. There can be no assurance that Vornado's final results will not differ from these preliminary estimates as a result of quarter-end closing procedures, review procedures, or review adjustments, and any such changes could be material.