Full Description

Vornado Realty Trust (Vornado) is an integrated real estate investment trust (REIT) and conducts its business through Vornado Realty L.P., a Delaware limited partnership (the Operating Partnership). Vornado is the general partner of, and owned approximately 90.6% of the common limited partnership interest in, the Operating Partnership as of December 31, 2008. The Company’s business segments include New York Office Properties, Washington, DC Office Properties, Retail Properties, Merchandise Mart Properties and Toys “R” Us (Toys). On March 31, 2008, Vornado sold its 47.6% interest in Americold. On June 6, 2008, it sold its Tysons Dulles Plaza office building complex located in Tysons Corner, Virginia.

During the year ended December 31, 2008, the Company owned directly or indirectly, all or portions of 28 office properties aggregating approximately 16.1 million square feet in the New York City metropolitan area (primarily Manhattan), all or portions of 84 office properties aggregating 17.7 million square feet in the Washington, DC and Northern Virginia areas, and a 70% controlling interest in 555 California Street, a three-building complex aggregating 1.8 million square feet in San Francisco’s financial district. Through the Retail Properties segment, Vornado owns 176 retail properties in 21 states, Washington, DC and Puerto Rico aggregating approximately 21.9 million square feet, including 3.7 million square feet owned by tenants on land leased from the Company. Under the Merchandise Mart Properties, it owned eight properties in five states and Washington, DC aggregating approximately 8.9 million square feet of showroom and office space, including the 3.5 million square foot Merchandise Mart in Chicago. The Company has a 32.7% interest in Toys “R” Us, Inc., which owns and/or operates 1,561 stores worldwide, including 847 stores in the United States and 714 stores internationally.

New York Office Properties

It owns 28 New York Office properties aggregating 16.1 million square feet, including 15.1 million square feet of office space, 817,000 square feet of retail space and 183,000 square feet of showroom space. In addition, the New York Office Properties segment includes six garages totaling 368,000 square feet (1,739 spaces), which are managed by or leased to third parties. New York Office Properties lease terms range from five to seven years for smaller tenant spaces to as long as 15 years for major tenants.

Washington, DC Office Properties

As of December 31, 2008, the Company owned 84 properties aggregating 17.7 million square feet in the Washington, DC and Northern Virginia area, including 76 office buildings, seven residential properties and a hotel property. In addition, the Washington, DC Office Properties segment includes 48 garages totaling approximately 8.9 million square feet (28,000 spaces), which are managed by or leased to third parties. As of December 31, 2008, 29% of the space in the Washington, DC Office Properties portfolio was leased to various agencies of the United States government. Washington, DC Office Properties leases range from four to seven year terms.

Retail Properties

As of December 31, 2008, the Company owned 176 retail properties, of which 146 were strip shopping centers located primarily in the Northeast, Mid-Atlantic and California; seven were regional malls located in New York, New Jersey, Virginia and San Juan, Puerto Rico, and 23 were retail properties located in Manhattan (Manhattan Street Retail). Its strip shopping centers and malls are located on highways. Its strip shopping centers contain an aggregate of 12.4 million square feet and are substantially (over 80%) leased to large stores (over 20,000 square feet). Tenants include destination retailers, such as discount department stores, supermarkets, home improvement stores, discount apparel stores and membership warehouse clubs. Tenants offer basic consumer necessities, such as food, health and beauty aids, clothing, building materials and home improvement supplies.

The Green Acres Mall in Long Island, New York contains 1.8 million square feet, and is anchored by Macy’s, Sears, J.C. Penney, Best Buy and a BJ’s Wholesale Club. The Monmouth Mall in Eatontown, New Jersey, in which the Company owns a 50% interest, contains 1.5 million square feet and is anchored by Macy’s, Lord & Taylor and J.C. Penney, two of which own their stores aggregating 457,000 square feet. The Springfield Mall in Springfield, Virginia contains 1.4 million square feet and is anchored by Macy’s, J.C. Penney and Target who own their stores aggregating 390,000 square feet.

The Broadway Mall in Hicksville, Long Island, New York contains 1.1 million square feet and is anchored by Macy’s, Ikea, Multiplex Cinema and Target, which owns its store containing 141,000 square feet. The Montehiedra Mall in San Juan, Puerto Rico contains 541,000 square feet and is anchored by Home Depot, Kmart, and Marshalls. The Las Catalinas Mall in San Juan, Puerto Rico, contains 496,000 square feet and is anchored by Kmart and Sears, which owns its 140,000 square foot store. Manhattan Street Retail consists of 22 properties containing 1,047,000 square feet.

Merchandise Mart Properties

As of December 31, 2008, the Company owned a portfolio of 8 Merchandise Mart properties containing an aggregate of 8.9 million square feet. The Merchandise Mart properties segment also includes seven garages totaling one million square feet (3,312 spaces). Office lease terms range from three to seven years for smaller tenants to as long as 15 years for large tenants. The showrooms provide manufacturers and wholesalers with permanent and temporary space, in which to display products for buyers, specifiers and end users. The showrooms are also used for hosting trade shows for the contract furniture, casual furniture, gift, carpet, crafts, apparel and design industries. Merchandise Mart Properties owns and operates five furniture and gift trade shows, including the contract furniture industry’s trade show, NeoCon and is hosted at the Merchandise Mart building in Chicago. The Merchandise Mart Properties portfolio also contains approximately 117,000 square feet of retail space, which was 90.7% occupied, as of December 31, 2008.

Toys “R” US, Inc.

As of December 31, 2008, the Company owned a 32.7% interest in Toys, a retailer of toys and baby products. As of December 31, 2008, the Company owned a 70% interest in a three-building complex containing 1,800,000 square feet, known as The Bank of America Center, located at California and Montgomery Streets in San Francisco’s financial district (555 California Street).

Other Investments

As of December 31, 2008, the Company owned a 32.5% interest in Alexander’s, Inc., which has seven properties in the New York metropolitan area. It owns the Hotel Pennsylvania, which is located in New York City on Seventh Avenue opposite Madison Square Garden and consists of a hotel portion containing 1,000,000 square feet of hotel space with 1,700 rooms and a commercial portion containing 400,000 square feet of retail and office space. As of December 31, 2008, it owned a 17.2% interest in Lexington Realty Trust, which has interests in 288 properties, encompassing approximately 48.8 million square feet across 44 states. As of December 31, 2008, the Company owned six warehouse/industrial properties in New Jersey containing approximately 1.2 million square feet. Average lease terms range from three to five years.