PARAMUS, NJ-Vornado Realty Trust has acquired 1.2% of McDonald's Corp.'s outstanding common shares, according to a quarterly report filed with the SEC yesterday. Vornado acquired just over 15 million shares valued at around $500 million during the quarter ended Sept. 30.

The filing follows a statement earlier this week by McDonald's CEO Joe Skinner in response to rumors that the fast food giant was going to restructure, starting a spin-off company or a REIT. "Neither would be in the best interests of our system or our shareholders."

This is not the first time Vornado has made a significant investment in an operating retail company. Last year the company paid $337 million for shares of Sears, Roebuck & Co., and since that retailer's merger with Kmart, Vornado has realized an aggregate net gain on that investment since of $146.9 million.

And in July Vornado and a group of private equity firms acquired Toys "R" Us for about $6.6 billion. Vornado contributed $428 million of the $1.3 billion of equity spent on that venture.

Vornado's net income for the quarter was $27.1 million, down from $104.5 million during the same year-ago period. FFO applicable to commons share was $93.3 million, down from $156.7 million. But over the nine months ended Sept. 30, net income rose to $387.4 million, from $337.4 million during the same period last year. FFO was $563.4 million, up from $446.9 million.