Jones Lang LaSalle


Vornado Reports Results
PARAMUS, N.J.--(BUSINESS WIRE)--Feb. 28, 2006--VORNADO REALTY TRUST (New York Stock Exchange: VNO) today reported:

Year Ended December 31, 2005 Results

NET INCOME applicable to common shares for the year ended December 31, 2005 was $493.1 million, or $3.50 per diluted share, versus $571.0 million, or $4.35 per diluted share, for the year ended December 31, 2004. Net income for the year ended December 31, 2005 includes (i) $40.5 million for the Company's share of Toys "R" Us net loss for the period from July 21, 2005 (date of acquisition) through October 29, 2005, offset by, (ii) $34.5 million of net gains on sale of real estate and (iii) certain other items that affect comparability which are listed in the table on the following page. Net income for the year ended December 31, 2004 includes $75.8 million of net gains on sale of real estate, as well as certain other items that affect comparability which are listed in the table on the following page. The aggregate of these items, net of minority interest, increased net income by $98.6 million, or $.68 per diluted share for the year ended December 31, 2005 and by $180.2 million, or $1.35 per diluted share for the year ended December 31, 2004.

FUNDS FROM OPERATIONS applicable to common shares plus assumed conversions (FFO) for the year ended December 31, 2005 was $757.2 million, or $5.21 per diluted share, compared to $750.0 million, or $5.63 per diluted share, for the prior year. Adjusting FFO for the Company's share of Toys "R" Us negative FFO of $32.9 million and for certain other items that affect comparability which are listed in the table on the following page, FFO for the years ended December 31, 2005 and 2004 were $689.4 million and $639.1 million, or $4.75 and $4.80 per share, respectively.

Quarter Ended December 31, 2005 Results

Net income applicable to common shares for the quarter ended December 31, 2005 was $105.7 million, or $.71 per diluted share, versus $233.6 million, or $1.73 per diluted share, for the quarter ended December 31, 2004. Net income for the quarter ended December 31, 2005 includes $40.0 million for the Company's share of Toys "R" Us net loss, recorded on a one quarter lag basis, for their third quarter ended October 29, 2005 and certain other items that affect comparability which are listed in the table on the following page. Net income for the quarter ended December 31, 2004 includes certain items that affect comparability which are listed in the table on the following page. The aggregate of these items, net of minority interest, increased net income by $3.1 million or $.02 per diluted share for the quarter ended December 31, 2005 and increased net income by $133.7 million of $0.99 per diluted share for the quarter ended December 31, 2004.

FFO for the quarter ended December 31, 2005 was $194.1 million, or $1.26 per diluted share, compared to $299.4 million, or $2.22 per diluted share, for the prior year's quarter. Adjusting FFO for the Company's share of Toys "R" Us negative FFO of $33.4 million and for certain other items that affect comparability which are listed in the table on the following page, FFO for the quarters ended December 31, 2005 and 2004 were $190.6 million and $165.7 million, or $1.24 and $1.23 per share, respectively.