Vornado, which bought the toy firm last year in a $6.6 billion partnership agreement with private equity firms Kohlberg Kravis Roberts & Co. and Bain Capital Partners LLC, said its first quarter Funds From Operations, will also include $62.3 million, or 36 cents per diluted share, from the toy retailer's fourth quarter.
Vornado said the "highly seasonal" toys business historically produces higher fourth quarter income with about 80% of Toys 'R' Us net income accounting for more than 80% of its annual fiscal income. Toys R Us posted net sales of $4.88 billion in the fourth quarter.
The announcement follows news earlier this month that the company it will sell its 7.5 million shares of Sears Canada. The company also said it has recently completed the sale in the equity of that firm's parent company, Sears Holdings Co.
Vornado has been fairly active, recently. In April, it also announced that it acquired a historic block of stores in Boston's Downtown Crossing that includes the Filenes flagship building.
© Arc, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to TMSalesOperations@arc-network.com. For more information visit Asset & Logo Licensing.