Vornado Realty Trust ( VNO), which operates office and retail properties, posted a 68% decline in first-quarter earnings, sending shares in the red during morning trading.

Shares of the company fell 2% to $51.67 on Tuesday.

During the quarter, earnings fell to $125.8 million, or 79 a diluted share, compared with $389.6 million, or $2.38 a share, in the year-ago period.

Funds from operations, a key gauge of the real-estate industry, was $268.6 million, or $1.63 a diluted share, compared to $527.9 million, or $3.17 a share, last year.

"We are currently in an economic recession which has negatively affected substantially all businesses, including ours," the company said in a filing. "During the past year, real estate transactions have diminished significantly and capitalization rates have risen."
Copyright 2009 TheStreet.com Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

If you liked this article you might like

Google or Amazon Should Acquire Toys "R" Us -- Bankruptcy Lawyer Says

Toys 'R' Us Store Employees Set for Higher Wages Despite Bankruptcy

Pret A Manger Takeover in the Works; Cisco's M&A Shackles Come Off - ICYMI

Toys 'R' Us Debt Load Tips It Into Chapter 11

Toys 'R' Us Is Nearing Its End These 3 Signs Reveal