CITI 2016 GLOBAL PROPERTY CEO CONFERENCE

Transcription

1 CITI 2016 GLOBAL PROPERTY CEO CONFERENCE

2 FORWARD LOOKING STATEMENTS This investor presentation contains certain statements that constitute forward-looking statements as such term is defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements are not guarantees of future performance. They represent our intentions, plans, expectations and beliefs and are subject to numerous assumptions, risks and uncertainties. Our future results, financial condition and business may differ materially from those expressed in these forward-looking statements. You can find many of these statements by looking for words such as approximates, believes, expects, anticipates, estimates, intends, plans, would, may or other similar expressions in this presentation. Many of the factors that will determine the outcome of our forward-looking statements are beyond our ability to control or predict. For further discussion of factors that could materially affect the outcome of our forward-looking statements, see Item 1A. Risk Factors in our Annual Report on Form 10-K for the year ended December 31, For these statements, we claim the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of You are cautioned not to place undue reliance on our forward-looking statements, which speak only as of March 14, We undertake no duty, and expressly disclaim any obligation, except as may be required by law, to update or revise these forward-looking statements to reflect any new information, future events, developments or otherwise. In this presentation, we provide estimated property values based on capitalization rates. We make no representation or warranty that these amounts represent the value at which the properties could be sold.

3 COMPANY SNAPSHOT Focused Strategy We have a focused strategy of owning and operating premier office and street retail assets in Manhattan and office assets in Washington, DC We have dramatically simplified and sharpened our focus We exited multiple business lines and non-core investments through dispositions totaling $8.7 billion We created a successful standalone company (Urban Edge Properties) through the spin-off of our strip shopping center business Portfolio of Premier Assets We own premier assets in key locations in two of the best markets, Manhattan and Washington, DC markets that are highly sought after by global investors and institutional capital We own the best in-class 69 property, 3.1 million square foot street retail business in Manhattan, concentrated in the best submarkets: Fifth Avenue Times Square Madison Avenue Penn Plaza Soho We own the franchise assets in San Francisco, 555 California Street, and Chicago, themart We upgraded the portfolio through prudent asset recycling and the sale of non-core assets Unique and Substantial Value Creation Opportunity with Penn Plaza The island of Manhattan is tilting to the West and South converging on Penn Plaza. We own 9 million square feet in the bullseye, on top of and surrounding Penn Station

4 COMPANY SNAPSHOT - BALANCE SHEET Large Scale $30 billion market value balance sheet Significant Liquidity / Fortress Balance Sheet We have significant liquidity - $4.5 billion, comprised of $2.0 +/- billion of cash/restricted cash/marketable securities and $2.5 billion undrawn on our $2.5 billion revolving credit facilities We have been building cash over the past 18 months and are well positioned for opportunities Total debt-to-ebitda of 7.5x (1) ; total debt-to-enterprise value of 38% (1), based on $91.99 share price Investment Grade Debt Rating (1) Excludes pro rata share of Toys R Us debt (carried at zero no VNO guarantee) and self-liquidating debt associated with 220 CPS

5 DEEP AND EXPERIENCED MANAGEMENT TEAM

6 WE ARE MARKET LEADERS - WE MAKE THE BIG LEASES! New York Office: Macy s 639,000 SF (2013) Amazon 470,000 SF (2014) Neuberger Berman 402,000 SF (2014) IPG 420,000 SF (2012, 2015) J Crew 295,000 SF (2011, 2012, 2014) AMC Networks 324,000 SF (2014) Madison Square Garden 312,000 SF (2014) Facebook 355,000 SF (2013,2014,2015) Information Builders 209,000 SF (2012) Bloomberg L.P. 191,000 SF (2016) New York & Company 178,000 SF (2014) Foot Locker 145,000 SF (2015) PJT Partners LLC 142,000 SF (2015) Hachette Book Group 134,000 SF (2013, 2014) State Street Bank 133,000 SF (2013, 2014) Fiduciary Trust 127,000 SF (2015) Factset 122,000 SF (2014, 2015) M&T 103,000 SF (2012) TPG Capital 100,000 SF (2015) Washington, DC: US Marshall Service 371,000 SF (2015) Sidley Austin 311,000 SF (2013) Family Health International 247,000 SF (2013) US Fish & Wildlife Service 183,000 SF (2013) US Department of Justice 169,000 SF (2014) WeWork (WeLive) 165,000 SF (2014) American Diabetes Association 68,000 SF (2014) Booz Allen 59,000 SF (2014) Whole Foods 37,000 SF (2015) Manhattan Street Retail: Victoria s Secret 64,000 SF (2015) Swatch 19,527 SF (2015) Harry Winston 7,646 SF (2015) Top Shop 44,000 SF (2013) Coach 6,700 SF (2014) Moncler 5,400 SF (2015) TMobile 4,000 SF (2014) 555 California Street: Bank of America 261,000 SF (2013) Kirkland & Ellis 122,000 SF (2014) Dodge & Cox 111,000 SF (2014) Fenwick & West 78,000 SF (2014) Sidley Austin 53,000 SF (2015) Microsoft 49,000 SF (2014) themart: Motorola Mobility 608,000 SF (2012, 2013) ConAgra Foods 168,000 SF (2015) ,500 SF (2012, 2014, 2015) Yelp 142,000 SF (2015) PayPal 81,000 SF (2014, 2015)

7 SIGNIFICANT ACQUISITIONS ($ Amounts in Millions) Assets 666 Fifth Avenue Retail St. Regis Retail condo (75%) Independence Plaza (50.1%) West 34 th Street (Old Navy) Fifth Avenue (92.5%) (Ferragamo) Madison Avenue (20.1%) Marriott Times Square Retail & Signage One Park Avenue (55%) , Eleventh Avenue Crown Plaza Times Square (33%) Center Building, Long Island City Ninth Avenue West 22 nd Street (1) (2) (1) Cost of capitalized lease only (2) Capitalized value of the ground lease

8 CATALYSTS FOR STOCK PRICE APPRECIATION 1. Big Discount to NAV $107 Citi NAV and $125 Green Street NAV versus $91.99 stock price, a 14% and 26% discount respectively NAV does not reflect private market values for either office or street retail 2. Embedded Mark-to-Market in Manhattan Street Retail 3. Large embedded growth from executed leases not yet commenced and free rent burn off 4. Lease-up/Redevelopment/Development Pipeline: 2015/2016 In Process 330 West 34 th Street 61 Ninth Avenue 7 West 34 th Street 512 West 22 nd Street 1535 Broadway 260 Eleventh Avenue 280 Park Avenue 1770 Crystal Drive 90 Park Avenue 1700 M Street The Bartlett 5. Placemaking/Value Creation Opportunities Penn Plaza District Crystal City Central Park South

9 NEW YORK Number of Properties Square Feet (in millions) EBITDA ($ in millions) YE YE (1) Office (1) Retail Hotel (1) Residential (2) (3) Total , (1) Includes our share of Alexander s and Vornado Capital Partners (2) Does not add because some buildings include office and retail or residential (3) Total square footage including portion of buildings owned by partners is 30.9 million square feet

10 WASHINGTON, DC Number of Properties Square Feet (in millions) EBITDA ($ in millions) YE YE Office Residential Hotel (1) (1) Total M SF 13.4 M SF 2.8 M SF Skyline (8) (2.6) (24.2) (27.2) Total, excluding Skyline Total 17.2 M SF (1) 93 properties totaling 24.5 million square feet including third party managed properties and portions of buildings owned by partners owned partially owned Map reflects DC/Arlington assets

11 APPENDIX This investor package and the related discussion contain certain non-gaap financial measures, including Earnings Before Interest, Taxes, Depreciation, and Amortization ( EBITDA ). EBITDA is presented before noncontrolling interests, discontinued operations, gains on sale of real estate and non-recurring items. A description of these measures and a reconciliation of them to the most directly comparable GAAP measures is provided on the following page.

12 APPENDIX Reconciliation of Net Income to EBITDA and EBITDA as adjusted for comparability for the Years Ended December 31, 2015 and 2014 (Amounts in thousands) New York Washington, DC Year Ended December 31, Year Ended December 31, Net income 603, , , ,001 Interest and debt expense 248, ,959 82,286 89,448 Depreciation, amortization and income taxes 398, , , ,141 EBITDA 1,250,819 1,439, , ,590 EBITDA from properties included in Vornado Capital Partners Real Estate Fund (included in Other segment) 3,000 3,425 Non comparable items: Gains on sale: 1740 Broadway 20 Broad Street (142,693) (440,537) 1750 Pennsylvania Avenue (102,404) Waterfront (1,600) Discontinued and sold property operations (12,546) (36,271) (5,591) (7,443) Other (16,280) (306) 425 (147) EBITDA as adjusted for comparability 1,082, , , ,400

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