May 6 Vornado Realty Trust said a key
metric of real estate investment trust performance fell in the
first quarter, hurt by its investment in J C Penney Co Inc
and weakness in its Washington office portfolio.
The company, owner of office buildings and retail properties
chiefly in New York and Washington, on Monday reported
first-quarter funds from operations attributed to common
shareholders of $201.8 million, or $1.08 per share, compared
with $348.5 million or $1.82 per share in the year-ago quarter.
Excluding items such as more than $85 million in losses and
impairments relating to its investment in Penney, severance
costs and a $59.6 million gain from a litigation settlement, the
company reported FFO of $213.3 million, or $1.14 per share,
compared with $186.7 million, or 98 cents per share in the
The company has been paring down its disparate investments,
selling non-core properties and 43 percent of its stake in
Penney. At the end of the first quarter, its total economic net
loss in Penney was $227.1 million.
For its core New York office properties the company has
owned for at least a year, Vornado said cash earnings before
interest, taxes, depreciation and amortization (EBITDA) rose 9.1
percent, while those in Washington fell 9.4 percent compared
with a year earlier.
EBITDA for its retail properties rose 2.2 percent.
Shares of Vornado closed at $87.84, up 1 percent or 91
cents, and were unchanged after hours.