Since acquiring the 1,750-store company, along withjoint-venture partners in 2005 for $6.6 billion, the retailer hasprovided a $200 million increase in EBITA, Fascitelli said, half ofwhich is in the 586-unit US Toys "R" Us business, which was largelywritten off as unsuccessful. Of the 118 stores that were closed andup for retenanting after the acquisition, only nine are left tofill, and Vornado has identified 18 to 20 where another tenantwould serve as a better use.

Fascitelli stresses that there is value in the Toys business aswell as the 50 million sf of real estate that it occupies, but sayshis company's run with the retailer is not quite over. "It's tooearly to declare victory on Toys," he said.

For future real estate acquisitions, in both retail and office,Vornado is looking at its core markets in the New York City andWashington DC metro areas, California and Boston, but the firm isnot interested in other US locales. "We would rather go to Londonthan Chicago," Fascitelli said. Management is interested inpossible investments in India as well.