Vornado CEO Says It Again: A Spin-off of DC Assets Is Still On the Table

We continue to explore separating Washington into its own freestanding business unit.  There can be no assurance that any transaction will be completed. Our objective in pursuing a separation of Washington would be much the same as it was in our separation of Urban Edge Properties, namely to create a smaller, laser-focused business unit with its own dedicated management and its own report card (i.e. stock price).

While it is true that Washington and New York are both office-centric, each is its own market and there really is little overlap or synergy between them. Furthermore, New York and Washington are in totally different lifecycle situations (growth vs recovery).

Our Washington business is bouncing along the bottom.  Excluding Skyline and buildings coming out of service, we expect the core business' EBITDA to be flat to positive $4 million in 2016 versus 2015.

Washington has been a victim of the US Government's Department of Defense Base Realignment and Closure Statute move-outs, limited government growth in the Capital District, and a generally all around soft real estate market.  Confoundingly, Washington has the lowest unemployment rate in the nation, the most educated work force in the nation, coupled with the highest vacancy rate in the nation; something doesn't add up.

We continue to explore separating Washington into its own freestanding business unit.  There can be no assurance that any transaction will be completed. Our objective in pursuing a separation of Washington would be much the same as it was in our separation of Urban Edge Properties, namely to create a smaller, laser-focused business unit with its own dedicated management and its own report card (i.e. stock price).

While it is true that Washington and New York are both office-centric, each is its own market and there really is little overlap or synergy between them. Furthermore, New York and Washington are in totally different lifecycle situations (growth vs recovery).

Our Washington business is bouncing along the bottom.  Excluding Skyline and buildings coming out of service, we expect the core business' EBITDA to be flat to positive $4 million in 2016 versus 2015.

Washington has been a victim of the US Government's Department of Defense Base Realignment and Closure Statute move-outs, limited government growth in the Capital District, and a generally all around soft real estate market.  Confoundingly, Washington has the lowest unemployment rate in the nation, the most educated work force in the nation, coupled with the highest vacancy rate in the nation; something doesn't add up.