Third Quarter 2011 Results

      NET INCOME attributable to common shareholders for the quarter ended September 30, 2011 was $41.1 million, or $0.22 per diluted share, compared to $95.2 million, or $0.52 per diluted share, for the quarter ended September 30, 2010. Net income for the quarter ended September 30, 2011 includes $3.6 million of net gains on sale of real estate. In addition, the quarters ended September 30, 2011 and 2010 include certain other items that affect comparability, which are listed in the table below. The aggregate of the net gains on sale of real estate and the items in the table below, net of amounts attributable to noncontrolling interests, decreased net income attributable to common shareholders by $26.4 million, or $0.14 per diluted share for the quarter ended September 30, 2011 and increased net income attributable to common shareholders for the quarter ended September 30, 2010 by $22.3 million, or $0.12 per diluted share.

      FUNDS FROM OPERATIONS attributable to common shareholders plus assumed conversions ("FFO") for the quarter ended September 30, 2011 was $195.1 million, or $1.05 per diluted share, compared to $249.0 million, or $1.31 per diluted share, for the prior year's quarter. Adjusting FFO for certain items that affect comparability which are listed in the table below, FFO for the quarters ended September 30, 2011 and 2010 was $222.9 million and $221.5 million, or $1.20 and $1.17 per diluted share, respectively.

(Amounts in thousands, except per share amounts) For the Three Months Ended September 30,
2011 2010
FFO (1) $ 195,125 $ 248,964
Per Share $ 1.05 $ 1.31
Items that affect comparability income (expense):
     (Loss) income from the mark-to-market of J.C. Penney derivative position $ (37,537) $ 32,249
     Merchandise Mart restructuring costs (3,722) -
     Buy-out of a below market lease      (1,593) -
     Acquisitions costs and impairment losses (684 ) (5,921 )
     Discount on preferred share and unit redemptions 5,000 4,382
     Net gain on sale of condominiums 1,298 -
     Real Estate Fund placement fees - (3,752 )
     Default interest and fees accrued on loans in special servicing - (5,887 )
     FFO attributable to discontinued operations 5,777 10,117
     Other, net 1,780 (1,647 )
(29,681 ) 29,541
Noncontrolling interests' share of above adjustments 1,922 (2,077 )
Items that affect comparability, net $ (27,759 ) $ 27,464
FFO as adjusted for comparability $ 222,884 $ 221,500
Per Share $ 1.20 $ 1.17

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(1) See page 4 for a reconciliation of our net income to FFO for the three months ended September 30, 2011 and 2010.

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Nine Months 2011 Results

      NET INCOME attributable to common shareholders for the nine months ended September 30, 2011 was $532.3 million, or $2.86 per diluted share, compared to $353.3 million, or $1.92 per diluted share, for the nine months ended September 30, 2010. Net income for the nine months ended September 30, 2011 and 2010 include $59.5 million and $0.3 million, respectively, of net gains on sale of real estate. In addition, the nine months ended September 30, 2011 and 2010 include certain items that affect comparability, which are listed in the table below. The aggregate of the net gains on sale of real estate and the items in the table below, net of amounts attributable to noncontrolling interests, increased net income attributable to common shareholders by $208.6 million, or $1.12 per diluted share for the nine months ended September 30, 2011 and $16.2 million, or $0.09 per diluted share for the nine months ended September 30, 2010.

      FFO for the nine months ended September 30, 2011 was $951.1 million, or $4.96 per diluted share, compared to $814.0 million, or $4.29 per diluted share, for the prior year's nine months. Adjusting FFO for certain items that affect comparability which are listed in the table below, FFO for the nine months ended September 30, 2011 and 2010 was $791.8 million and $782.3 million, or $4.13 and $4.12 per diluted share, respectively.

(Amounts in thousands, except per share amounts)  For the Nine Months Ended September 30,
2011 2010
FFO (1) $ 951,054 $ 814,030
Per Share $ 4.96 $ 4.29
Items that affect comparability income (expense):
     Net gain (loss) on extinguishment of debt $ 83,907 $ (1,796 )
     Mezzanine loans loss reversal (accrual) and net gain on disposition 82,744 (6,900 )
     Our share of LNR's asset sales and tax settlement gains 14,997 -
     Net gain resulting from Lexington's stock issuances 9,760 5,998
     Discount on preferred share and unit redemptions 7,000 11,354
     Net gain on sale of condominiums 5,884 3,149
     (Loss) income from the mark-to-market of J.C. Penney derivative position (27,136 ) 32,249
     Buy-out of below-market leases (16,593 ) -
     Acquisition costs, litigation loss accrual and impairment losses (4,398 ) (17,907 )
     Merchandise Mart restructuring costs (3,722 ) -
     Real Estate Fund placement fees (3,451 ) (6,482 )
     Default interest and fees accrued on loans in special servicing - (12,445 )
     FFO attributable to discontinued operations 17,188 26,308
     Other, net 3,828 524
170,008 34,052
Noncontrolling interests' share of above adjustments (10,705 ) (2,367 )
Items that affect comparability, net $ 159,303 $ 31,685
FFO as adjusted for comparability 791,751 782,345
Per Share $ 4.13 $ 4.12

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(1) See page 4 for a reconciliation of our net income to FFO for the nine months ended September 30, 2011 and 2010.

Supplemental Financial Information

     Further details regarding 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, as amended, for the year ended December 31, 2010. 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)

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VORNADO REALTY TRUST
OPERATING RESULTS FOR THE THREE AND NINE MONTHS ENDED
SEPTEMBER 30, 2011 AND 2010

(Amounts in thousands, except per share amounts) For the Three Months Ended
September 30, 		For the Nine Months Ended
September 30,
2011 2010 2011 2010
Revenues $ 727,343 $ 687,125 $ 2,173,850 $ 2,037,845
Income from continuing operations $ 62,540 $ 119,799 $ 496,720 $ 437,568
Income (loss) from discontinued operations 3,683 (3,667 ) 146,293 (11,681 )
Net income 66,223 116,132 643,013 425,887
Less:
     Net income attributable to noncontrolling interests in
          consolidated subsidiaries (5,636 ) (296 ) (20,643 ) (1,490 )
     Net income attributable to noncontrolling interests in the
          Operating Partnership, including unit distributions (6,825 ) (11,584 ) (47,364 ) (33,487 )
Net income attributable to Vornado 53,762 104,252 575,006 390,910
Preferred share dividends (17,627 ) (13,442 ) (47,743 ) (41,975 )
Discount on preferred share and unit redemptions 5,000 4,382 5,000 4,382
Net income attributable to common shareholders $ 41,135 $ 95,192 $ 532,263 $ 353,317
Net income per common share:
          Basic $ 0.22 $ 0.52 $ 2.89 $ 1.94
          Diluted $ 0.22 $ 0.52 $ 2.86 $ 1.92
Weighted average shares:
          Basic 184,398 182,462 184,220 182,014
          Diluted 186,065 184,168 186,039 183,826
FFO attributable to common shareholders plus assumed conversions $ 195,125 $ 248,964 $ 951,054 $ 814,030
FFO per diluted share $ 1.05 $ 1.31 $ 4.96 $ 4.29
Weighted average shares used in determining FFO per diluted share 186,119 189,974 191,775 189,562

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     The following table reconciles our net income to FFO:

For The Three Months For The Nine Months
(Amounts in thousands, except per share amounts) Ended September 30, Ended September 30,
Reconciliation of our net income to FFO: 2011 2010 2011 2010
Net income attributable to Vornado $ 53,762 $ 104,252 $ 575,006 $ 390,910
Depreciation and amortization of real property 128,811 126,987 377,458 381,782
Net gain on sales of real estate - - (51,623 ) -
Proportionate share of adjustments to equity in net income of Toys,
  to arrive at FFO:
     Depreciation and amortization of real property 17,947 18,132 52,844 53,296
     Net gain on sales of real estate - - (491 ) -
     Income tax effect of above adjustments (6,280 ) (6,347 ) (18,320 ) (18,654 )
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 27,541 19,481 73,743 58,555
     Net gain on sales of real estate (3,591 ) - (7,360 ) (307 )
Noncontrolling interests' share of above adjustments (10,468 ) (11,011 ) (27,224 ) (33,485 )
FFO 207,722 251,494 974,033 832,097
Preferred share dividends (17,627 ) (13,442 ) (47,743 ) (41,975 )
Discount on preferred share and unit redemptions 5,000 4,382 5,000 4,382
FFO attributable to common shareholders 195,095 242,434 931,290 794,504
Interest on 3.88% exchangeable senior debentures - 6,490 19,670 19,405
Convertible preferred share dividends 30 40 94 121
FFO attributable to common shareholders plus assumed conversions $ 195,125 $ 248,964 $ 951,054 $ 814,030

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