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Investments in Partially Owned Entities | 6 Months Ended
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Jun. 30, 2026
Equity Method Investments and Joint Ventures [Abstract] |
Investments in Partially Owned Entities | Investments in Partially Owned Entities Fifth Avenue and Times Square JV As of June 30, 2026, we own a 51.5% common interest in a joint venture ("Fifth Avenue and Times Square JV") which owns interests in properties located at 640 Fifth Avenue, 655 Fifth Avenue, 666 Fifth Avenue, 689 Fifth Avenue, 697-703 Fifth Avenue, 1535 Broadway and 1540 Broadway (collectively, the "Properties"). The remaining 48.5% common interest in the joint venture is owned by a group of institutional investors (the "Investors"). Our 51.5% common interest in the joint venture represents an effective 51.0% interest in the Properties. The 48.5% common interest in the joint venture owned by the Investors represents an effective 47.2% interest in the Properties. We provide various services to Fifth Avenue and Times Square JV in accordance with management, development, leasing and other agreements. We also own $1.079 billion aggregate liquidation preference of preferred equity interests in certain of the properties. The preferred equity has an annual coupon of 4.75% through April 2029, and will then be based on a formulaic rate. It can be redeemed under certain conditions on a tax deferred basis. As of June 30, 2026, the carrying amount of our investment in the joint venture was less than our share of the equity in the net assets of the joint venture by approximately $700,993,000, the basis difference primarily resulting from non-cash impairment losses recognized in prior periods. Substantially all of this basis difference was allocated, based on our estimates of the fair values of Fifth Avenue and Times Square JV’s assets and liabilities, to real estate (land and buildings). We are amortizing the basis difference related to the buildings into earnings as a reduction to depreciation expense over their estimated useful lives. Alexander's, Inc. ("Alexander's") (NYSE: ALX) As of June 30, 2026, we own 1,654,068 Alexander’s common shares, or approximately 32.4% of Alexander’s common equity. We manage, develop and lease Alexander’s properties pursuant to agreements which expire in March of each year and are automatically renewable. In addition, wholly owned subsidiaries of Vornado provide cleaning, engineering, security, and garage management services to certain Alexander’s properties. As of June 30, 2026, the market value ("fair value" pursuant to ASC Topic 820, Fair Value Measurements ("ASC 820")) of our investment in Alexander’s, based on Alexander’s June 30, 2026 closing share price of $275.56, was $455,795,000, or $374,802,000 in excess of the carrying amount on our consolidated balance sheets. As of June 30, 2026, the carrying amount of our investment in Alexander’s, excluding amounts owed to us, exceeded our share of the equity in the net assets of Alexander’s by approximately $25,221,000. The majority of this basis difference resulted from the excess of our purchase price for the Alexander’s common stock acquired over the book value of Alexander’s net assets. Substantially all of this basis difference was allocated, based on our estimates of the fair values of Alexander’s assets and liabilities, to real estate (land and buildings). We are amortizing the basis difference related to the buildings into earnings as additional depreciation expense over their estimated useful lives. This depreciation is not material to our share of equity in Alexander’s net income. On May 28, 2026, Alexander’s completed the sale of its Rego Park I property for $235,500,000. As a result of the sale, we recognized our $44,329,000 share of the net gain and received a $2,355,000 sales commission paid by Alexander’s, of which $500,000 was paid to a third-party broker. Park Avenue Plaza On June 11, 2026, we completed the purchase of a 49.0% interest in Park Avenue Plaza at a gross asset valuation of $1.1 billion ($950 per square foot). We acquired our interest subject to our share of the $575,000,000 loan encumbering the property, resulting in a cash purchase price of approximately $230,000,000, net of seller credits and inclusive of transaction costs. The loan bears interest at a fixed rate of 2.99% and matures in November 2031. Park Avenue Plaza is a 45-story, 1.2 million rentable square foot building located at 55 East 52nd Street. The office building, co-owned by Fisher Brothers, has protected Park Avenue views and occupies the full through-block between East 52nd and East 53rd Street. Fisher Brothers retains its current 51.0% ownership interest and continues to manage and lease the property. Vornado and Fisher Brothers have joint control over major decisions. 5. Investments in Partially Owned Entities - continued 7 West 34th Street On January 23, 2026, a joint venture, in which we have a 53.0% interest, completed a $250,000,000 refinancing of 7 West 34th Street, a 477,000 square foot Manhattan office and retail building. The non-recourse, five-year interest-only mortgage loan matures in February 2031 and has a fixed rate of 5.79%. The joint venture paid down by $50,000,000 the prior $300,000,000 full-recourse loan that bore interest at 3.65% and was scheduled to mature in June 2026. The loan was paid down using property-level reserves and a $25,000,000 member loan from Vornado which accrues interest at 16.00% and receives priority on distributions. 825 Seventh Avenue Office Condominium On January 26, 2026, a joint venture, in which we have a 50.0% interest, entered into a nine-month extension with the lenders on the $54,000,000 mortgage loan encumbering the office condominium of 825 Seventh Avenue and simultaneously paid down the principal balance by $6,000,000 to $48,000,000. The loan was previously scheduled to mature in January 2026. The non-recourse interest-only loan bears interest at a rate of SOFR plus 2.75% and matures in October 2026, with a fifteen-month extension option subject to loan-to-value and debt yield requirements. 61 Ninth Avenue On May 8, 2026, a joint venture, in which we have a 45.1% interest, completed a $161,000,000 refinancing of 61 Ninth Avenue. The interest-only mortgage loan matures in June 2028, with a nine-month extension option subject to certain conditions, and bears interest at SOFR plus 3.00% in year one, SOFR plus 3.35% for year two, and SOFR plus 3.85% during the extension period. The refinancing replaced the joint venture’s prior $167,500,000 mortgage loan on the property. On February 2, 2026, the joint venture extended the prior loan’s maturity by seven months and simultaneously paid down the principal balance by $12,500,000 to $155,000,000. Below is a schedule summarizing our investments in partially owned entities.
(Amounts in thousands) | Percentage Ownership as of June 30, 2026 |  | Balance as of
|  | June 30, 2026 |  | December 31, 2025
Investments: |  |  |  |  |
Fifth Avenue and Times Square JV (see page 22 for details) | 51.5% |  | $ | 1,534,771 |  |  | $ | 1,538,141 |
Partially owned office buildings/land(1) | Various |  | 404,863 |  |  | 148,958 |
Alexander's (see page 22 for details): | 32.4% |  | 80,993 |  |  | 47,276 |
Other investments(2) | Various |  | 208,597 |  |  | 206,903 |
|  |  | $ | 2,229,224 |  |  | $ | 1,941,278 |
Investments in partially owned entities included in other liabilities(3): |  |  |  |  |
7 West 34th Street | 53.0% |  | $ | (41,895) |  |  | $ | (65,726) |
85 Tenth Avenue | 49.9% |  | (27,065) |  |  | (25,198) |
|  |  | $ | (68,960) |  |  | $ | (90,924) |
____________________ (1)Includes interests in 280 Park Avenue, Park Avenue Plaza, 61 Ninth Avenue and others. (2)Includes interests in Independence Plaza, Sunset Pier 94 Joint Venture (“Pier 94 JV”), Rosslyn Plaza and others. (3)Our negative basis results from distributions in excess of our investment. 5. Investments in Partially Owned Entities - continued Below is a schedule of income from partially owned entities.
(Amounts in thousands) | Percentage Ownership as of June 30, 2026 |  | For the Three Months Ended June 30, |  | For the Six Months Ended June 30, |
|  | 2026 |  | 2025 |  | 2026 |  | 2025 |
Our share of net income (loss): |  |  |  |  |  |  |  |  |  |
Fifth Avenue and Times Square JV (see page 22 for details): |  |  |  |  |  |  |  |  |  |
Equity in net income | 51.5% |  | $ | 5,613 |  |  | $ | 3,649 |  |  | $ | 9,936 |  |  | $ | 9,486 |  |
Return on preferred equity, net of our share of the expense |  |  | 6,173 |  |  | 6,503 |  |  | 12,278 |  |  | 15,046 |  |
Net gain on sale |  |  | — |  |  | — |  |  | — |  |  | 76,162 |  |
|  |  | 11,786 |  |  | 10,152 |  |  | 22,214 |  |  | 100,694 |  |
Alexander's (see page 22 for details): |  |  |  |  |  |  |  |  |  |
Equity in net income | 32.4% |  | 2,319 |  |  | 1,919 |  |  | 3,774 |  |  | 5,842 |  |
Management, leasing and development fees |  |  | 3,492 |  |  | 1,406 |  |  | 4,737 |  |  | 3,039 |  |
Net gain on sale |  |  | 44,329 |  |  | — |  |  | 44,329 |  |  | — |  |
|  |  | 50,140 |  |  | 3,325 |  |  | 52,840 |  |  | 8,881 |  |
Partially owned office buildings(1) | Various |  | (1,962) |  |  | (2,355) |  |  | (4,797) |  |  | (5,977) |  |
Other investments(2) | Various |  | 3,231 |  |  | 5,549 |  |  | 5,760 |  |  | 10,050 |  |
|  |  | $ | 63,195 |  |  | $ | 16,671 |  |  | $ | 76,017 |  |  | $ | 113,648 |  |
____________________ (1)Includes interests in 280 Park Avenue, Park Avenue Plaza, 7 West 34th Street, 61 Ninth Avenue, 85 Tenth Avenue and others. (2)Includes interests in Independence Plaza, Pier 94 JV, Rosslyn Plaza and others.

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- Definition The entire disclosure for equity method investments and joint ventures. Equity method investments are investments that give the investor the ability to exercise significant influence over the operating and financial policies of an investee. Joint ventures are entities owned and operated by a small group of businesses as a separate and specific business or project for the mutual benefit of the members of the group. + References Reference 1: http://www.xbrl.org/2003/role/recommendedDisclosureRef -Topic 740 -SubTopic 323 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (f) -Publisher FASB -URI https://asc.fasb.org/1943274/2147478156/740-323-50-2 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 323 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 3 -Subparagraph (a)(3) -Publisher FASB -URI https://asc.fasb.org/1943274/2147481687/323-10-50-3 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 323 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 3 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org/1943274/2147481687/323-10-50-3 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Name Accounting Standards Codification -Topic 323 -Publisher FASB -URI https://asc.fasb.org/323/tableOfContent + Details
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