Vornado Realty FFO falls 26 percent in quarter

BOSTON Aug 5 (Reuters) - Vornado Realty Trust (VNO.N), a U.S. owner of office and retail properties, reported a 26.1 percent drop in funds from operations on Tuesday.

The real estate investment trust reported funds from operations applicable to common shares plus assumed conversions of $208.3 million, or $1.27 per share. That is down from $281.7 million, or $1.72 per share, a year earlier.

Funds from operations is a commonly used measure of REIT performance that factors out the profit-reducing effects of depreciation, a non-cash accounting item. (Reporting by Scott Malone, editing by Gerald E. McCormick)