Vornado Realty Trust 3rd-quarter FFO declines

PARAMUS, N.J. - Real estate investment trust Vornado Realty Trust said Tuesday that its third-quarter funds from operations declined partly due to a smaller gain from real estate sales, but adjusted results managed to surpass Wall Street's expectations.

The company's stock added $6.81, or 10.2 percent, to $73.75 in midday trading. The shares have traded in a 52-week range of $53.35 to $108.15.

FFO after preferred dividends dropped to $173.8 million, or $1.06 per share, from $221.2 million, or $1.35 per share, in the prior-year period.

Excluding certain items related to the REIT's sale of AmeriCold and GMH, FFO improved to $207.3 million, or $1.26 per share, from $193 million, or $1.18 per share.

Analysts surveyed by Thomson Financial expected FFO of $1.23 per share. Analysts' estimates typically exclude one-time items.

FFO, which adds such items as amortization and depreciation back to net income, is considered a key measure of REIT strength because it gives a more accurate picture of cash performance.

Earnings after preferred dividends for the period ended Sept. 30 slid 73 percent to $31.4 million, or 20 cents per share, from $116.5 million, or 74 cents per share.

Year-ago results benefited from a $31.9 million gain from real estate sales as compared with a $1.3 million gain for the current quarter.

The real estate sales and other items lowered the current quarter's profit by 20 cents per share and boosted prior-year results by 33 cents per share.

Revenue increased 6 percent to $677.1 million from $637.1 million.

Copyright 2008 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.