During the same period last year, the net loss was $24.3 million, accounting just over $23 million of fallen FFO. However, a statement released by company executives says that about 80% of Toys "R" Us' income comes during the fourth quarter, which will be reflected in Vornado's Q1 report next year.

Toys "R" Us net sales for its Q3, which ended on Oct. 29, were about $2.2 billion, while its operating expenses were $776 million. Coupled with other expenses the retailer had a net loss of $136 million, according to Vornado documents.

Either Toys "R" Us will make a significant turnaround, or Vornado will own a major stake in a retailer will very valuable real estate, said Michael Fascitelli, Vornado's president a Wachovia Securities event earlier this month. "We think the [Toys "R" Us] real estate in the US is unbelievably valuable, and we're going to work the real estate in that toy business like you've never seen," he said. "There's lots of opportunities to mine the Toys deal."