DOW JONES NEWSWIRES
Vornado Realty Trust (VNO) recovered from a prior-year
second-quarter loss as the company reported higher margins and
revenue growth on an increase in some occupancy rates from a year
ago.
The previous year's loss was caused by a $122.7 million loan
loss.
The New Jersey-based real estate investment trust owns and
manages commercial real estate, with its main properties totaling
more than 100 million square feet in New York; the District of
Columbia; Virginia; Puerto Rico, and Illinois.
The occupancy rates in the New York office properties declined
from a year ago, but grew in the District of Columbia. Retail
occupancy also improved.
Last month, the Wall Street Journal reported MGM Resorts
International (MGM) is selling about $80 million worth of land to a
partnership led by Vornado. As an owner of the land, Vornado would
collect rent from a venture of MGM and Boyd Gaming Corp. (BYD)
which owns the hotel, garage and other buildings on the land. The
reported deal with Vornado is an unusual step for the real estate
giant, which is making its first entrance into the Atlantic City
market during one of the gambling haven's most brutal
downturns.
For the latest quarter, Vornado reported a profit of $72.1
million, or 31 cents a share, from a year-earlier loss of $37.6
million, or 30 cents a share. The per-share figures include
preferred-dividend impacts.
Excluding debt-related payments and other items, funds from
operations--a key profitability metric for REITS--rose to $1.18
from $1.08. Analysts polled by Thomson Reuters projected $1.06.
Total revenue climbed 3.3% to $696.1 million.
Operating margins improved to 34.7% from 32.3%.
Shares closed Monday at $86.41 and were inactive in pre-market
trading. The stock is up 24% this year.
-By John Kell, Dow Jones Newswires; 212-416-2480;
john.kell@dowjones.com