Vornado Sees Wider Toys "R" Us Investment Loss in 3rd-Quarter

   By John Kell 
 

Vornado Realty Trust (VNO) disclosed the loss the company will record from its stake in Toys "R" Us would be wider in the third quarter than the year-ago level.

The real-estate investment trust, which bought a stake in the toy retailer in 2005, said its results would include a net loss of $34.2 million, or 17 cents a share, from the toy retailer's second-quarter results. That compared to a net loss of $8.6 million, or four cents a share, recorded a year earlier.

Vornado's share of the retailer's funds from operations totaled an 11 cent loss, compared with FFO after income taxes of a penny a year earlier.

Last month, Toys "R" Us reported a wider fiscal second-quarter loss, hurt by lower sales in the U.S. and abroad. Demand was especially weak for electronics and juvenile toys.

Toys "R" Us was purchased in 2005 by Vornado and private-equity firms Bain Capital LLC and KKR & Co. (KKR) for $6.6 billion. The retailer dropped plans for an initial public offering earlier this year after almost three years of withering sales and heightened competition from online players.

Shares of Vornado were inactive in after-hours trading on Friday.

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