In his annual letter, billionaire Vornado (a REIT) CEO Steven Roth seeks to assure his investors that the company’s real-estate investments are rock solid. He has an odd way of doing it:
And then there’s Steve’s confidence about Vornado’s position in the New York market:
2009 is about the Great Recession, declining asset values and stock prices, deleveraging and balance sheet strength. No one anticipated the speed and severity of the economic collapse. Clearly, New York Office and Retail are experiencing declining rents and reduced tenant demand. Notwithstanding, we expect mark-to-market of new leases to be better than flat, and we don’t anticipate more than about a two per cent loss of occupancy.
You don’t say? And how, exactly, is Vornado going to manage that?