PRESS RELEASE

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

                                                      Quarter Ended March 31,

(Amounts in thousands, except per share amounts)      2009          2008

FFO attributable to common shares plus assumed        $ 268,582     $ 527,880
conversions (1)

Per Share                                             $ 1.63        $ 3.17

Items that affect comparability (income) expense:

Write-off of unamortized costs associated with        $ 32,588      $ --
voluntary surrenders of equity awards

Alexander's stock appreciation rights                   (11,105 )     205

Net gain on extinguishment of debt                      (5,905  )     --

Reversal of deferred income taxes initially recorded    --            (222,174 )
in connection with H Street acquisition

Net gain on sale our 47.6% interest in Americold        --            (112,690 )

Write-off of pre-development costs                      --            34,200

Derivative positions in marketable equity securities    --            18,362

Reversal of MPH mezzanine loan loss accrual             --            (10,300  )

Marketable equity security - impairment loss            --            9,073

Costs of acquisitions not consummated                   --            2,283

Other, net                                              1,874         1,663

                                                        17,452        (279,378 )

47.6% share of Americold's FFO (Net loss of $1,076) -   --            (6,098   )
sold on March 31, 2008

                                                        17,452        (285,476 )

Noncontrolling interests' share of above adjustments    (1,481  )     26,097

                                                      $ 15,971    $   (259,379 )

Per share                                             $ 0.10      $   (1.56    )

FFO as adjusted for comparability                     $ 284,553   $   268,501

Per share                                             $ 1.73      $   1.61

(1) See page 3 for a reconciliation of net income to FFO for the quarters ended
March 31, 2009 and 2008.

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, 2009 AND 2008

                                                        FOR THE QUARTER
                                                        ENDED MARCH, 31

(Amounts in thousands, except per share amounts)        2009        2008

Revenues                                                $ 682,014   $ 649,282

Income from continuing operations                       $ 156,431   $ 337,667

Income from discontinued operations, net                  --          112,081

Net income                                                156,431     449,748

Less: Net income attributable to noncontrolling           16,321      45,910
interests, including unit distributions

Net income attributable to Vornado                        140,110     403,838

Preferred share dividends                                 (14,269 )   (14,275 )

Net income attributable to common shares                $ 125,841   $ 389,563

Net income per common share:

Basic                                                   $ 0.80      $ 2.50

Diluted                                                 $ 0.79      $ 2.38

Average number of common shares and share equivalents
outstanding:

Basic                                                     158,173     156,093

Diluted                                                   159,281     166,260

FFO attributable to common shares plus assumed          $ 268,582   $ 527,880
conversions

FFO per diluted share                                   $ 1.63      $ 3.17

Average number of common shares and share equivalents     164,950     166,260
outstanding used for determining FFO per diluted share

The following table reconciles our net income to FFO:

(Amounts in thousands)                                For The Quarter
                                                      Ended March 31,

                                                      2009        2008

Net income attributable to Vornado                    $ 140,110   $ 403,838

Depreciation and amortization of real property          124,127     129,860

Net gains on sale of real estate                        --          (580    )

Proportionate share of adjustments to equity in net
income of Toys to arrive at FFO:

Depreciation and amortization of real property          16,580      16,652

Income tax effect of Toys adjustments included above    (5,803  )   (5,828  )

Proportionate share of adjustments to equity in net
income of partially-owned entities,
excluding Toys, to arrive at FFO:

Depreciation and amortization of real property          14,608      11,586

Net gain on sale of real estate                         (173    )   (5,422  )

Noncontrolling interests' share of above adjustments    (13,003 )   (14,286 )

FFO                                                     276,446     535,820

Preferred share dividends                               (14,269 )   (14,275 )

FFO attributable to common shares                       262,177     521,545

Interest on 3.875% exchangeable senior debentures       6,362       6,283

Convertible preferred dividends                         43          52

FFO attributable to common shareholders plus assumed  $ 268,582   $ 527,880
conversions

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.

    Source: Vornado Realty Trust