NEW YORK CITY-Vornado’s funds from operations for the firstquarter rose 43% year over year, according to financial results theoffice and retail REIT released Tuesday. The FFO of $2.64 perdiluted share, or $505.9 million, was up from $1.87 per share theyear prior and beat the average estimate of $2.03 per diluted sharefrom 12 analysts polled by Bloomberg. A portion of that stemmedfrom its disposition of its High Point, NC furniture showrooms,which removed nearly $84 million in liabilities from its balancesheet at quarter’s end.

The REIT’s Q1 net income of $399.2 million, or $2.12 per dilutedshare, nearly doubled the $200.3 million net income recorded forthe first quarter of 2010. It included $51.2 million realized innet gains on sales of real estate.

During Q1, Vornado closed on its acquisition of a 95% interestin Murray Hill Properties’ 1 Park Ave. in partnership with a realestate fund of which Vornado is 25% owner. The deal values the 95%stake at $374 million, or $422 per square foot, including $137million in cash and Vornado’s share of a new $250-million,five-year mortgage. MHP retains a 5% stake and will continuemanaging and leasing the property. Vornado and another office REIT,SL Green Realty Corp., formed a first-ever joint venture to hold$400 million of debt on another property along the same street, 280Park Ave., during the quarter.