04.22.2025 Vornado Announces PENN 1 Ground Rent Reset Determination
NEW YORK, April 22, 2025 (GLOBE NEWSWIRE) -- Vornado Realty Trust (NYSE:VNO) announced today that the panel appointed to determine the ground rent payable by Vornado’s subsidiary for the PENN 1 land parcel for the 25-year period beginning June 17, 2023 has determined that the annual rent payable during the current 25-year term will be $15 million.
Further, litigation is currently pending between the parties in New York County Supreme Court relating to the matter. To date, the court denied the Vornado subsidiary’s motion to dismiss the action and Vornado’s subsidiary has filed a notice of appeal. The panel’s decision provides that if the fee owner prevails in a final judgment in the ongoing litigation, the annual rent for the 25-year term will be $20.22 million, retroactive to June 17, 2023.
In connection with the panel’s determination, Vornado will reverse approximately $17.2 million of rent expense that was previously accrued with respect to this ground lease and, going forward, will accrue based on a $15 million annual rent, pending final resolution of the litigation.