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Vornado Announces Third Quarter 2012 FFO Of $1.34 Per Share

(tables to follow)

VORNADO REALTY TRUST

OPERATING RESULTS FOR THE THREE AND NINE MONTHS ENDED

SEPTEMBER 30, 2012 AND 2011
 
         
For the Three Months For the Nine Months
Ended September 30, Ended September 30,
(Amounts in thousands, except per share amounts) 2012 2011 2012 2011
 
Revenues $ 710,977 $ 687,860 $ 2,078,487 $ 2,050,828
 
Income from continuing operations $ 106,842 $ 57,779 $ 361,624 $ 477,307
Income from discontinued operations 157,314 8,444 241,024 165,706
Net income 264,156 66,223 602,648 643,013
Less net income attributable to noncontrolling interests in:
Consolidated subsidiaries (6,610) (5,636) (30,928) (20,643)
Operating Partnership, including unit distributions (16,240) (6,825) (40,595) (47,364)
Net income attributable to Vornado 241,306 53,762 531,125 575,006
Preferred share dividends (20,613) (17,627) (56,187) (47,743)
Discount on preferred unit redemptions 11,700 5,000 11,700 5,000
Net income attributable to common shareholders $ 232,393 $ 41,135 $ 486,638 $ 532,263
 
 
Net income per common share:
Basic $ 1.25 $ 0.22 $ 2.62 $ 2.89
Diluted $ 1.24 $ 0.22 $ 2.61 $ 2.86
 
Weighted average shares:
Basic 185,924 184,398 185,656 184,220
Diluted 186,655 186,065 186,399 186,039
 
 
FFO attributable to common shareholders plus assumed conversions $ 251,019 $ 195,125 $ 767,347 $ 951,054
Per diluted share $ 1.34 $ 1.05 $ 4.07 $ 4.96
 
FFO as adjusted for comparability $ 212,238 $ 209,745 $ 744,438 $ 746,083
Per diluted share $ 1.14 $ 1.13 $ 3.95 $ 3.89
 
Weighted average shares used in determining FFO per diluted share 186,655 186,119 188,678 191,775
  The following table reconciles our net income to FFO:
       
(Amounts in thousands) For the Three Months For the Nine Months
Ended September 30, Ended September 30,
Reconciliation of our net income to FFO: 2012 2011 2012 2011
Net income attributable to Vornado $ 241,306 $ 53,762 $ 531,125 $ 575,006
Depreciation and amortization of real property 118,717 128,811 377,338 377,458
Net gains on sale of real estate (131,088) - (203,801) (51,623)
Real estate impairment losses - - 13,511 -
Proportionate share of adjustments to equity in net income
of Toys, to arrive at FFO:
Depreciation and amortization of real property 16,905 17,947 50,706 52,844
Net gains on sale of real estate - - - (491)
Real estate impairment losses - - 8,394 -
Income tax effect of above adjustments (5,917) (6,280) (20,765) (18,320)
Proportionate share of adjustments to equity in net income of
partially owned entities, excluding Toys, to arrive at FFO:
Depreciation and amortization of real property 22,750 27,541 65,810 73,743
Net gains on sale of real estate (1,156) (3,591) (2,051) (7,360)
Real estate impairment losses - - 1,849 -
Noncontrolling interests' share of above adjustments (1,613) (10,468) (18,197) (27,224)
FFO 259,904 207,722 803,919 974,033
Preferred share dividends (20,613) (17,627) (56,187) (47,743)
Discount on preferred unit redemptions 11,700 5,000 11,700 5,000
FFO attributable to common shareholders 250,991 195,095 759,432 931,290
Interest on 3.88% exchangeable senior debentures - - 7,830 19,670
Convertible preferred share dividends 28 30 85 94
FFO attributable to common shareholders plus assumed conversions $ 251,019 $ 195,125 $ 767,347 $ 951,054

FFO is computed in accordance with the definition adopted by the Board of Governors of the National Association of Real Estate Investment Trusts (“NAREIT”). NAREIT defines FFO as GAAP net income or loss adjusted to exclude net gain from sales of depreciated real estate assets, real estate impairment losses, depreciation and amortization expense from real estate assets, extraordinary items and other specified non-cash items, including the pro-rata share of such adjustments of unconsolidated subsidiaries. FFO and FFO per diluted share are used by management, investors and analysts to facilitate meaningful comparisons of operating performance between periods and among our peers because it excludes the effect of real estate depreciation and amortization and net gains on sales, which are based on historical costs and implicitly assume that the value of real estate diminishes predictably over time, rather than fluctuating based on existing market conditions. FFO does not represent cash generated from operating activities and is not necessarily indicative of cash available to fund cash requirements and should not be considered as an alternative to net income as a performance measure or cash flow as a liquidity measure. FFO may not be comparable to similarly titled measures employed by other companies. A reconciliation of our net income to FFO is provided above. In addition to FFO, we also disclose FFO before certain items that affect comparability. Although this non-GAAP measure clearly differs from NAREIT’s definition of FFO, we believe it provides a meaningful presentation of operating performance. Reconciliations of FFO to FFO as adjusted for comparability are provided on page 1 and page 2 of this press release.

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