Vornado Posts Higher Earnings

Funds from operations are $1.51 a share.
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Vornado Realty

(VNO) - Get Report

, an active real estate investment trust, posted a 9% jump in second-quarter earnings Friday as it prepares to join the

S&P 500

index.

The company reported earnings applicable to common shares of $172.7 million, or $1.25 a share, for the quarter, up from $158.4 million, or $1.21 a share, logged in the same quarter last year. Those figures include net gains from various property sales that boosted net income in the second quarter by 51 cents a share and last year's second quarter by 43 cents a share.

Its funds from operations, a key performance measure for REITs, rose to $215.8 million, or $1.51 a share, up from last year's $159.7 million, or $1.22 a share.

Total revenue was up 49% to $594.8 million. That gain was largely the result of a change in accounting for its 47.6% stake in AmeriCold, a refrigeration warehouse business that was added to the consolidated income statement. Its total expenses rose 79%.

Shares of Vornado are up 3% since Wednesday when it announced it would be replacing

Sungard Data Systems

(SDS) - Get Report

on the S&P, a move that normally rallies a stock as funds that are benchmarked to the index buy shares. When it joins the index, Vornado will become the eighth REIT on the S&P.

Its shares were recently up 3 cents to $88.62.