Vornado Realty Trust Gets Hammered by COVID-19 and Lockdowns
Posted on 11/03/2020
Vornado Realty Trust has been adversely affected as a result of the COVID-19 pandemic and the preventive measures taken to curb the spread of the virus. Vornado Realty Trust reported net income (9-months ended September 30, 2020) to be -US$ 139,617,000 versus US$ 2,904,589,000 from (9-months ended September 30, 2019).
Some actions by Vornado Realty Trust including the closing of Hotel Pennsylvania. The REIT also cancelled trade shows at theMART for the remainder of 2020.
Based on its assessment of the probability of rent collection of its lease receivables, Vornado Realty Trust have written off US$ 13,873,000 and US$ 50,170,000 of receivables arising from the straight-lining of rents for the three and nine months ended September 30, 2020, respectively, including the JCPenney retail lease at Manhattan Mall and the New York & Company, Inc. office lease at 330 West 34th Street. Both tenants have filed for Chapter 11 bankruptcy. In addition, Vornado Realty Trust have written off US$ 12,364,000 and US$ 21,186,000 of tenant receivables deemed uncollectible for the three and nine months ended September 30, 2020, respectively.
