Vornado Announces First Quarter 2009 FFO of $1.63 per share

VORNADO REALTY TRUST (New York Stock Exchange: VNO) today reported:

First Quarter 2009 Financial Results

NET INCOME attributable to common shares for the quarter ended March 31, 2009 was $125.8 million, or $0.79 per diluted share, versus $389.6 million, or $2.38 per diluted share, for the quarter ended March 31, 2008. Net income for the quarter ended March 31, 2008 includes $6.0 million of net gains on sales of real estate. In addition, net income for the quarters ended March 31, 2009 and 2008 also include certain items that affect comparability which are listed in the table below. The aggregate of the net gains on sale of real estate and the items in the table below, net of allocation to redeemable noncontrolling interests, decreased net income attributable to common shares for the quarter ended March 31, 2009 by $15.7 million, or $0.10 per diluted share and increased net income attributable to common shares for the quarter ended March 31, 2008 by $258.3 million, or $1.55 per diluted share.

FUNDS FROM OPERATIONS attributable to common shares plus assumed conversions ("FFO”) for the quarter ended March 31, 2009 was $268.6 million, or $1.63 per diluted share, compared to $527.9 million, or $3.17 per diluted share, for the quarter ended March 31, 2008. Adjusting FFO for certain items that affect comparability, which are listed in the table below, FFO for the quarters ended March 31, 2009 and 2008 was $284.6 million and $268.5 million, or $1.73 and $1.61 per share, respectively.

Supplemental Financial Information

Further details regarding the Company’s results of operations, properties and tenants can be accessed at the Company’s website www.vno.com. Vornado Realty Trust is a fully integrated equity real estate investment trust.

Certain statements contained herein may constitute "forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, among others, risks associated with the timing of and costs associated with property improvements, financing commitments and general competitive factors.

The following table reconciles our net income to FFO:

FFO is computed in accordance with the definition adopted by the Board of Governors of the National Association of Real Estate Investment Trusts ("NAREIT”). NAREIT defines FFO as net income or loss determined in accordance with Generally Accepted Accounting Principles ("GAAP”), excluding extraordinary items as defined under GAAP and gains or losses from sales of previously depreciated operating real estate assets, plus specified non-cash items, such as real estate asset depreciation and amortization, and after adjustments for unconsolidated partnerships and joint ventures. FFO and FFO per diluted share are used by management, investors and industry analysts as supplemental measures of operating performance of equity REITs. FFO and FFO per diluted share should be evaluated along with GAAP net income and income per diluted share (the most directly comparable GAAP measures), as well as cash flow from operating activities, investing activities and financing activities, in evaluating the operating performance of equity REITs. Management believes that FFO and FFO per diluted share are helpful to investors as supplemental performance measures because these measures exclude the effect of depreciation, amortization and gains or losses from sales of real estate, all of which are based on historical costs which implicitly assumes that the value of real estate diminishes predictably over time. Since real estate values instead have historically risen or fallen with market conditions, these non-GAAP measures can facilitate comparisons of operating performance between periods and among other equity REITs. FFO does not represent cash generated from operating activities in accordance with GAAP and is not necessarily indicative of cash available to fund cash needs as disclosed in the Company’s Consolidated Statements of Cash Flows. FFO should not be considered as an alternative to net income as an indicator of the Company’s operating performance or as an alternative to cash flows as a measure of liquidity. In addition to FFO, the Company also discloses FFO before certain items that affect comparability. Although this non-GAAP measure clearly differs from NAREIT’s definition of FFO, the Company believes it provides a meaningful presentation of operating performance. A reconciliation of net income to FFO is provided above. In addition, a reconciliation of FFO to FFO before certain items that affect comparability is provided on page 1 of this press release.