Thank you for sharing!

Your article was successfully shared with the contacts you provided.

PARAMUS, NJ-Vornado Realty Trust will post $36.4 million in losses from its one-third share of the 1,400-store Toys “R” Us chain when it reports its third-quarter earnings on Sept. 30. The REIT’s FFO is expected to take a $30.2 million hit of 18 cents per share because of the retailer’s performance.

The Toys loss is significantly up from Vornado’s second quarter, when the chain cost it $7.9 million. But Vornado still posted an overall net-income gain of $148.7 million during that period.

In a company statement Vornado management downplays the third-quarter Toys loss, saying the chain’s business is “highly seasonal” and its “fourth quarter net income accounts for more than 80% of its fiscal year net income.”

In January Vornado management announced the closure of 87 Toys stores, 12 of which were converted into Babies “R” Us units, with the remainder permanently shutting their doors.

In March 2005 Vornado acquired Toys ‘R’ Us in an $8.6 billion deal with Bain Capital and Kohlberg, Kravis, Roberts & Co., bringing the chain private.

Meanwhile, Vornado Realty Trust, Westrust and Pacific Coast Capital Partners, broke ground last month on the $137-million, 646,000-sf “Plant” mixed-use project in San Jose, CA. The parties expect to open the center in July of next year.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

Dig Deeper



Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt
Live Chat

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.