Vornado Reports Profit Increase From Toys R Us

PARAMUS, N.J. (AP) — Vornado Realty Trust said Monday it will record an 18 percent increase in fourth-quarter funds from operations from its 33 percent stake in toy retailer Toys R Us.

The real estate investment trust said funds from operations from its Toys R Us holding were $107.9 million, or 59 cents per share, compared with $91.2 million, or 50 cents per share, in the same quarter of the previous year.

Funds from operations, which adds such items as amortization and depreciation back to net income, is considered a key measure of strength for REITs because it provides a more accurate picture of cash performance.

The fourth-quarter results also will include net income from the toy retailer of $97.1 million, or 53 cents per share, compared with $80.4 million, or 44 cents per share, in the same quarter the previous year.

Vornado said the Toys R Us business is highly seasonal, with fourth-quarter net income accounting for more than 80 percent of its fiscal year net income.

The company said it will include the results in its first-quarter earnings report.

Shares fell $4.01, or 8.7 percent, to $42 in early afternoon trading.

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