By Kristin Jones
Vornado Realty Trust (VNO) said its fourth quarter will reflect
a wider loss from its share of Toys "R" Us Inc.'s fiscal
third-quarter results.
The real-estate investment trust bought a stake in Toys 'R' Us
in 2005, along with private-equity firms Bain Capital LLC and
Kohlberg Kravis Roberts & Co., for $6.6 billion.
Earlier this month, Toys "R" Us reported its loss for the
quarter ended Oct. 27 widened as the toy retailer recorded higher
interest expense and weaker same-store sales. The company has
struggled against a challenging economic environment in Europe and
Japan, partially offset by strength in China and southeast
Asia.
Vornado said the loss from its 32.5% share of Toys "R" Us's
results will widen to $33.8 million, or 17 cents a share, compared
with a loss of $32.3 million, or 16 cents a share, a year ago.
Vornado's share of funds from operations for the fourth quarter
will be a loss of $49.2 million before taxes, or 25 cents a share,
compared with a loss of $45.3 million, or 22 cents a share, a year
ago.
Vornado owns and manages commercial properties around New York
and the District of Columbia, markets that have remained strong. It
also holds major stakes in companies like Toys "R" Us and J.C.
Penney Co. Inc. (JCP), investments that have yielded varying
returns.
The REIT reported last month that its third-quarter profit
surged as the commercial-property owner reported fewer losses on
investments, and improving core results.
Shares closed Friday at $79.76 and were unchanged after hours.
The stock is up 3.8% since the start of the year.
Write to Kristin Jones at kristin.jones@dowjones.com
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