Real Estate Fund Investments

6 Months Ended

Jun. 30, 2017

Real Estate Fund Investments [Abstract]

4. Real Estate Fund Investments

We are the general partner and investment manager of Vornado Capital Partners Real Estate Fund (the “Fund”) and own a 25.0% interest in the Fund, which has an eight-year term and a three-year investment period that ended in July 2013. The Fund is accounted for under ASC 946, Financial Services – Investment Companies (“ASC 946”) and its investments are reported on its balance sheet at fair value, with changes in value each period recognized in earnings. We consolidate the accounts of the Fund into our consolidated financial statements, retaining the fair value basis of accounting.

We are also the general partner and investment manager of the Crowne Plaza Times Square Hotel Joint Venture (the “Crowne Plaza Joint Venture”) and own a 57.1% interest in the joint venture which owns the 24.7% interest in the Crowne Plaza Times Square Hotel not owned by the Fund. The Crowne Plaza Joint Venture is also accounted for under ASC 946 and we consolidate the accounts of the joint venture into our consolidated financial statements, retaining the fair value basis of accounting.

As of June 30, 2017, we had six real estate fund investments through the Fund and the Crowne Plaza Joint Venture with an aggregate fair value of $455,692,000, or $143,092,000 in excess of cost, and had remaining unfunded commitments of $117,902,000, of which our share was $34,519,000. Below is a summary of income from the Fund and the Crowne Plaza Joint Venture for the three and six months ended June 30, 2017 and 2016.

(Amounts in thousands)		For the Three Months Ended				For the Six Months Ended
		June 30,				June 30,
		2017		2016		2017		2016
Net investment income		$	3,646	$	1,723	$	10,860	$	6,396
Net realized gain on exited investments			-		-		241		14,676
Previously recorded unrealized gain on exited investment			-		-		-		(14,254)
Net unrealized gain (loss) on held investments			745		14,666		(6,442)		20,855
Income from real estate fund investments⁽¹⁾			4,391		16,389		4,659		27,673
Less income attributable to noncontrolling interests
	in consolidated subsidiaries		(4,695)		(8,845)		(8,198)		(14,818)
(Loss) income from real estate fund investments attributable to
	the Operating Partnership		(304)		7,544		(3,539)		12,855
Less loss (income) attributable to noncontrolling interests
	in the Operating Partnership		19		(465)		221		(794)
(Loss) income from real estate fund investments attributable to
	Vornado	$	(285)	$	7,079	$	(3,318)	$	12,061


(1)	Excludes $1,381 and $935 of management and leasing fees for the three months ended June 30, 2017 and 2016, respectively, and $2,381 and $1,695 for the six months ended June 30, 2017 and 2016, respectively, which are included as a component of "fee and other income" on our consolidated statements of income.