NEW YORK CITY-Vornado Realty Trust’s funds from operations for the second quarter rose to $243.4 million, according to financial results from the office and retail REIT released late Monday. With $1.27 per diluted share, Q2’s results are a $38.6 million increase from the prior year quarter of $204.8 million, or $1.11 per diluted share.

During the three-month period, several factors contributed to Vornado’s comparability income, including an $8.3 million net gain resulting from Lexington Realty Trust’s stock issuances, a net gain of $6 million from Vornado’s share of LNR Property Corp’s asset sales and a $2 million discount of redemption of perpetual preferred units.

Year-to-date, the Paramus, NJ-based REIT reported $749.3 million funds from operations over the first six months of 2011, compared to $565.1 million for 2010’s first half. The REIT reported a net gain of $83.9 million on early extinguishment of debt, a near $15 million gain from LNR’s asset sales and tax settlement, about $10.4 million in income from the mark-to-market of JC Penney’s derivative position and a $9.7 million net gain resulting from Lexington’s stock issuances. Overall, net income to common shareholders was $491.1 million, or $2.63 per diluted share, for the period ending on June 30.