Vornado Reveals Toys Loss

PARAMUS, NJ-Vornado Realty Trust will post $36.4 million in losses from its one-third share of the 1,400-store Toys “R” Us chain when it reports its third-quarter earnings on Sept. 30. The REIT’s FFO is expected to take a $30.2 million hit of 18 cents per share because of the retailer’s performance.

The Toys loss is significantly up from Vornado’s second quarter, when the chain cost it $7.9 million. But Vornado still posted an overall net-income gain of $148.7 million during that period.

In a company statement Vornado management downplays the third-quarter Toys loss, saying the chain’s business is “highly seasonal” and its “fourth quarter net income accounts for more than 80% of its fiscal year net income.”