PRESS RELEASE

Vornado Announces Third Quarter 2008 Financial Results

November 4, 2008

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

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

Third Quarter 2008 Financial Results

NET INCOME applicable to common shares for the quarter ended September 30, 2008 was $31.4 million, or $0.20 per diluted share, versus $116.5 million, or $0.74 per diluted share, for the quarter ended September 30, 2007. Net income for the quarters ended September 30, 2008 and 2007 include $1.3 million and $31.9 million, respectively, for our share of net gains on sale of real estate. Net income for the quarters ended September 30, 2008 and 2007 also include certain items that affect comparability which are listed in the table below. The aggregate of these items and net gains on sale of real estate, net of minority interest, decreased net income applicable to common shares by $31.2 million, or $0.20 per diluted share for the quarter ended September 30, 2008 and increased net income applicable to common shares by $54.5 million, or $0.33 per diluted share for the quarter ended September 30, 2007.

FUNDS FROM OPERATIONS applicable to common shares plus assumed conversions ("FFO") for the quarter ended September 30, 2008 was $173.8 million, or $1.06 per diluted share, compared to $221.2 million, or $1.35 per diluted share, for the quarter ended September 30, 2007. Adjusting FFO for certain items that affect comparability which are listed in the table below, FFO for the quarters ended September 30, 2008 and 2007 were $207.3 million and $193.0 million, or $1.26 and $1.18 per diluted share, respectively.

(Amounts in thousands, except per share amounts)    For the Quarter
                                                  Ended September 30,
                                                 ---------------------
                                                    2008       2007
                                                 ----------  ---------
FFO applicable to common shares plus assumed
 conversions (1)                                 $173,7872   $221,199
                                                  ========    =======
Per Share                                        $   1.069   $   1.35
                                                  ========    =======

Items that affect comparability (income) expense:
  Alexander's stock appreciation rights
   compensation expense (income)                 $  14,557   $ (3,075)
  Marketable equity securities - impairment
   losses                                           11,808         --
  Lexington MLP - impairment loss                    7,175         --
  Land held for development - impairment loss        5,000         --
  Derivative positions in marketable equity
   securities                                        3,982    (18,606)
  After-tax net gain on sale of residential
   condominiums                                     (3,570)        --
  Other, net                                        (2,151)    (2,029)
                                                  --------    -------
                                                    36,801    (23,710)
  Americold - sold in March 2008                        --     (5,673)
  GMH - sold in June 2008                               --     (1,685)
                                                  --------    -------
                                                    36,801    (31,068)
  Minority limited partners' share of above
   adjustments                                      (3,259)     2,853
                                                  --------    -------
                                                 $  33,542   $(28,215)
                                                  ========    =======
  Per share                                      $    0.20   $  (0.17)
                                                  ========    =======

FFO as adjusted for comparability                $ 207,329   $192,984
                                                  ========    =======
Per share                                        $    1.26   $   1.18
                                                  ========    =======

(1) See page 4 for a reconciliation of net income to FFO for the quarters ended September 30, 2008 and 2007.

Nine Months Ended September 30, 2008 Financial Results

NET INCOME applicable to common shares for the nine months ended September 30, 2008 was $554.7 million, or $3.48 per diluted share, versus $420.8 million, or $2.65 per diluted share, for the nine months ended September 30, 2007. Net income for the nine months ended September 30, 2008 and 2007 include $65.9 million and $32.4 million, respectively, for our share of net gains on sale of real estate. Net income for the nine months ended September 30, 2008 and 2007 also include certain items that affect comparability which are listed in the table below. The aggregate of these items and net gains on sale of real estate, net of minority interest, increased net income applicable to common shares by $275.6 million, or $1.68 per diluted share, and $114.2 million, or $0.70 per diluted share, for the nine months ended September 30, 2008 and 2007, respectively.

FFO for the nine months ended September 30, 2008 was $917.3 million, or $5.60 per diluted share, compared to $773.5 million, or $4.71 per diluted share, for the nine months ended September 30, 2007. Adjusting FFO for certain items that affect comparability which are listed in the table below, FFO for the nine months ended September 30, 2008 and 2007 were $695.2 million and $670.6 million, or $4.24 and $4.08 per diluted share, respectively.

(Amounts in thousands, except per share amounts) For the Nine Months
                                                 Ended September 30,
                                                ----------------------
                                                   2008        2007
                                                ----------  ----------
FFO applicable to common shares plus assumed
 conversions (1)                                $ 917,258   $ 773,457
                                                 ========    ========
Per Share                                       $    5.60   $    4.71
                                                 ========    ========

Items that affect comparability (income)
 expense:
   Reversal of deferred income taxes initially
    recorded in connection with H Street
    acquisition                                 $(222,174)  $      --
   Net gain on sale of Americold                 (112,690)         --
   Write-off of pre-development costs              34,200          --
   Derivative positions in marketable equity
    securities                                     25,812    (100,060)
   Marketable equity securities - impairment
    losses                                         20,881          --
   Partially owned entities - non-cash purchase
    price accounting adjustments:
     Toys "R" Us                                   14,900          --
     Beverly Connection                            (4,100)         --
   Reversal of MPH mezzanine loan loss accrual    (10,300)         --
   Alexander's stock appreciation rights
    compensation expense (income)                   7,605      (8,991)
   Lexington MLP - impairment loss                  7,175          --
   Land held for development - impairment loss      5,000          --
   After-tax net gain on sale of residential
    condominiums                                   (3,570)         --
   Costs of acquisitions not consummated            3,009       8,807
   Net gain on disposition of our 13.8% interest
    in GMH                                         (2,038)         --
   Prepayment penalties and write-off of
    unamortized financing costs                        --       7,562
   Other, net                                      (1,642)      1,969
                                                 --------    --------
                                                 (237,932)    (90,713)
   Americold - sold in March 2008                  (6,098)    (17,824)
   GMH - sold in June 2008                             --      (4,718)
                                                 --------    --------
                                                 (244,030)   (113,255)
   Minority limited partners' share of above
    adjustments                                   21,9417     10,3677
                                                 --------    --------
                                                $(222,089)  $(102,888)
                                                 ========    ========
   Per share                                    $   (1.36)  $   (0.63)
                                                 ========    ========

FFO as adjusted for comparability               $ 695,169   $ 670,569
                                                 ========    ========
Per share                                       $    4.24   $    4.08
                                                 ========    ========

(1) See page 4 for a reconciliation of net income to FFO for the nine months ended September 30, 2008 and 2007.

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. For a discussion of factors that could materially affect the outcome of our forward-looking statements and our future results and financial condition, see "Risk Factors" in Part I, Item 1A, of our Annual Report on Form 10-K for the year ended December 31, 2007. Such factors include, among others, risks associated with the timing of and costs associated with property improvements, financing commitments and general competitive factors.

(tables to follow)

                         VORNADO REALTY TRUST
        OPERATING RESULTS FOR THE THREE AND NINE MONTHS ENDED
                     SEPTEMBER 30, 2008 AND 2007
----------------------------------------------------------------------

                           FOR THE THREE MONTHS  FOR THE NINE MONTHS
                           ENDED SEPTEMBER, 30   ENDED SEPTEMBER, 30
                           -------------------- ---------------------
(Amounts in thousands,
 except per share amounts)        2008     2007       2008       2007
                           ----------- -------- ---------- ----------

Revenues                      $677,145 $637,078 $2,000,792 $1,753,350
                               =======  =======  =========  =========

Income from continuing
 operations                   $ 53,508 $121,362 $  499,617 $  497,255
Income from discontinued
 operations, net of
 minority interest                 102   24,538    154,442     25,162
                               -------  -------  ---------  ---------
Income before allocation
 to limited partners            53,610  145,900    654,059    522,417
Minority limited partners'
 interest in the
Operating Partnership           (3,091) (10,241)   (42,046)   (44,270)
Perpetual preferred unit
 distributions of the
Operating Partnership           (4,818)  (4,818)   (14,455)   (14,455)
                               -------  -------  ---------  ---------
Net income                      45,701  130,841    597,558    463,692
Preferred share dividends      (14,271) (14,295)   (42,820)   (42,886)
                               -------  -------  ---------  ---------
Net income applicable to
 common shares                $ 31,430 $116,546 $  554,738 $  420,806
                               =======  =======  =========  =========

     Net income per common
      share:
       Basic                  $   0.20 $   0.77 $     3.61 $     2.77
                               =======  =======  =========  =========
       Diluted                $   0.20 $   0.74 $     3.48 $     2.65
                               =======  =======  =========  =========
      Average number of
       common shares and
      share equivalents
       outstanding:
       Basic                   154,025  151,990    153,668    151,739
                               =======  =======  =========  =========
       Diluted                 158,688  158,513    163,918    158,745
                               =======  =======  =========  =========

FFO applicable to common
 shares plus assumed
 conversions                  $173,787 $221,199 $  917,258 $  773,457
                               =======  =======  =========  =========

     FFO per diluted share    $   1.06 $   1.35 $     5.60 $     4.71
                               =======  =======  =========  =========
     Average number of
      common shares and
      share equivalents
     outstanding used for
      determining FFO per
      diluted share            164,324  164,072    163,918    164,213
                               =======  =======  =========  =========

The following table reconciles net income to FFO:

                                   For The Three      For The Nine
                                        Months            Months
                                  Ended September   Ended September
(Amounts in thousands)                   30,               30,
                                  ----------------- -----------------
                                      2008     2007     2008     2007
                                  -------- -------- -------- --------
Net income                        $ 45,701 $130,841 $597,558 $463,692
Depreciation and amortization of
 real property                     127,975  117,148  380,062  325,324
Net gains on sale of real estate      (112) (22,942) (57,523) (22,942)
Proportionate share of
 adjustments to equity in net
income of Toys to arrive at FFO:
    Depreciation and amortization
     of real property               17,892   17,949   50,902   68,984
    Net gain on sale of real
     estate                           (164)       -     (164)    (493)
    Income tax effect of above
     adjustments                    (6,205)  (6,282) (17,981) (23,972)
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               12,524   13,506   35,778   36,091
    Net gain on sale of real
     estate                         (1,037)  (8,980)  (8,231)  (8,980)
Minority limited partners' share
 of above
adjustments                        (13,816) (11,070) (36,232) (37,570)
                                   -------  -------  -------  -------
FFO                                182,758  230,170  944,169  800,134
Preferred share dividends          (14,271) (14,295) (42,820) (42,886)
                                   -------  -------  -------  -------
FFO applicable to common shares    168,487  215,875  901,349  757,248
Interest on 3.875% exchangeable
 senior debentures                   5,255    5,256   15,764   15,768
Series A convertible preferred
 share dividends                        45       68      145      441
                                   -------  -------  -------  -------
FFO applicable to common shares
 plus assumed
conversions                       $173,787 $221,199 $917,258 $773,457
                                   =======  =======  =======  =======

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 cost which implicitly assume 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, reconciliations of FFO to FFO before certain items that affect comparability are provided on page 1 and 2 of this press release.

Source: Vornado Realty Trust

Contact: Vornado Realty Trust Joseph Macnow, 201-587-1000