PRESS RELEASE

PARAMUS, N.J.--(BUSINESS WIRE)--

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

NET INCOME applicable to common shares for the quarter ended March 31, 2007 was $152.6 million, or $0.96 per diluted share, versus $134.8 million, or $0.91 per diluted share, for the quarter ended March 31, 2006. Net income for the quarters ended March 31, 2007 and 2006 includes certain items that affect comparability which are listed in the table below. Net income for the quarter ended March 31, 2006 also includes $16.2 million for our share of net gains on sale of real estate. The aggregate of these items, net of minority interest, decreased net income applicable to common shares for the quarter ended March 31, 2007 by $2.3 million or $0.01 per diluted share and increased net income applicable to common shares for the quarter ended March 31, 2006 by $6.8 million or $0.04 per diluted share.

FUNDS FROM OPERATIONS applicable to common shares plus assumed conversions ("FFO") for the quarter ended March 31, 2007 was $270.2 million, or $1.65 per diluted share, compared to $211.9 million, or $1.37 per diluted share, for the quarter ended March 31, 2006. Adjusting FFO for certain items that affect comparability which are listed in the table below, FFO for the quarters ended March 31, 2007 and 2006 was $272.4 million and $218.9 million, or $1.66 and $1.42 per share, respectively.

                                                     For the Quarter
(Amounts in thousands, except per share amounts)     Ended March 31,
                                                   -------------------
                                                       2007      2006
                                                   --------- ---------
FFO applicable to common shares plus assumed
 conversions (1)                                   $270,165  $211,916
                                                   ========= =========
Per Share                                             $1.65     $1.37
                                                   ========= =========

Items that affect comparability (income) expense:
  Derivatives:
    McDonalds shares                                $(3,223)  $(6,300)
    Sears Holdings shares                                --   (18,611)
    GMH Warrants                                         --    20,475
    Other                                            (6,157)       --
  33% share of Alexander's:
    Stock appreciation rights                        (4,694)   12,395
    Net gain on sale of 731 Lexington Avenue
     condominiums                                        --    (1,858)
  Other:
    Costs of acquisition not consummated              8,807        --
    Prepayment penalties and write-off of
     unamortized financing costs                      5,861        --
    H Street litigation costs                         1,891     1,468
                                                   --------- ---------
                                                      2,485     7,569
Minority limited partners' share of above
 adjustments                                           (230)     (576)
                                                   --------- ---------
                                                     $2,255    $6,993
                                                   ========= =========
Per share                                             $0.01     $0.05
                                                   ========= =========

FFO as adjusted for comparability                  $272,420  $218,909
                                                   ========= =========
Per share                                             $1.66     $1.42
                                                   ========= =========

(1) See page 3 for a reconciliation of net income to FFO for the quarters ended March 31, 2007 and 2006.

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.

                         VORNADO REALTY TRUST

                OPERATING RESULTS FOR THE QUARTER ENDED

                        MARCH 31, 2007 AND 2006

                                                     FOR THE QUARTER
                                                     ENDED MARCH 31,
                                                   -------------------
(Amounts in thousands, except per share amounts)       2007      2006
                                                   --------- ---------

Revenues                                           $737,056  $647,337
                                                   ========= =========

Income from continuing operations                  $188,957  $153,324
(Loss) income from discontinued operations, net         (31)   16,735
                                                   --------- ---------
Income before allocation to limited partners        188,926   170,059
Minority limited partners' interest in the
Operating Partnership                               (17,177)  (15,874)
Perpetual preferred unit distributions of the
Operating Partnership                                (4,818)   (4,973)
                                                   --------- ---------
Net income                                          166,931   149,212
Preferred share dividends                           (14,296)  (14,407)
                                                   --------- ---------
Net income applicable to common shares             $152,635  $134,805
                                                   ========= =========

     Net income per common share:
        Basic                                         $1.01     $0.96
                                                   ========= =========
        Diluted                                       $0.96     $0.91
                                                   ========= =========
        Average number of common shares and
        share equivalents outstanding:
        Basic                                       151,428   141,150
                                                   ========= =========
        Diluted                                     164,001   148,964
                                                   ========= =========

FFO applicable to common shares plus assumed
conversions                                        $270,165  $211,916
                                                   ========= =========

     FFO per diluted share                            $1.65     $1.37
                                                   ========= =========
     Average number of common shares and share
     equivalents outstanding used for determining
     FFO per diluted share                          164,001   154,495
                                                   ========= =========

The following table reconciles net income to FFO:

(Amounts in thousands)                               For The Quarter
                                                     Ended March 31,
                                                   -------------------
                                                       2007      2006
                                                   --------- ---------
Net income                                         $166,931  $149,212
Depreciation and amortization of real property       93,665    76,443
Net gains on sale of real estate                         --   (16,160)
Proportionate share of adjustments to equity in net
income of partially-owned entities to arrive at
 FFO:
     Depreciation and amortization of real property  42,984    25,009
     Net gains on sale of real estate                    --      (329)
     Income tax effect of Toys "R" Us adjustments
     included above                                 (11,883)   (5,913)
Minority limited partners' share of above
 adjustments                                        (12,618)   (7,224)
                                                   --------- ---------
FFO                                                 279,079   221,038
Preferred share dividends                           (14,296)  (14,407)
                                                   --------- ---------
FFO applicable to common shares                     264,783   206,631
Interest on 3.875% exchangeable senior debentures     5,309     5,094
Series A convertible preferred share dividends           73       191
                                                   --------- ---------
FFO applicable to common shares plus assumed
conversions                                        $270,165  $211,916
                                                   ========= =========

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 and 2 of this press release.

Source: Vornado Realty Trust