10-Q

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

(Mark one)

x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended:    June 30, 2016

Or

o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from: to

Commission File Number: 001-34482

VORNADO REALTY L.P.

(Exact name of registrant as specified in its charter)

Delaware	13-3925979
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification Number)
888 Seventh Avenue, New York, New York	10019
(Address of principal executive offices)	(Zip Code)

(212) 894-7000

(Registrant’s telephone number, including area code)

N/A

(Former name, former address and former fiscal year, if changed since last report)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.  Yes x  No o

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate website, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).  Yes x No o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company.  See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

o Large Accelerated Filer	o Accelerated Filer
x Non-Accelerated Filer (Do not check if smaller reporting company)	o Smaller Reporting Company

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).  Yes o No x

 

PART I.		Financial Information:	Page Number
	Item 1.	Financial Statements:
		Consolidated Balance Sheets (Unaudited) as of
		June 30, 2016 and December 31, 2015	3
		Consolidated Statements of Income (Unaudited) for the
		Three and Six Months Ended June 30, 2016 and 2015	4
		Consolidated Statements of Comprehensive Income (Unaudited)
		for the Three and Six Months Ended June 30, 2016 and 2015	5
		Consolidated Statements of Changes in Equity (Unaudited) for the
		Six Months Ended June 30, 2016 and 2015	6
		Consolidated Statements of Cash Flows (Unaudited) for the
		Six Months Ended June 30, 2016 and 2015	8
		Notes to Consolidated Financial Statements (Unaudited)	10
		Report of Independent Registered Public Accounting Firm	32
	Item 2.	Management's Discussion and Analysis of Financial Condition
		and Results of Operations	33
	Item 3.	Quantitative and Qualitative Disclosures About Market Risk	72
	Item 4.	Controls and Procedures	72
PART II.		Other Information:
	Item 1.	Legal Proceedings	73
	Item 1A.	Risk Factors	73
	Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	73
	Item 3.	Defaults Upon Senior Securities	73
	Item 4.	Mine Safety Disclosures	73
	Item 5.	Other Information	73
	Item 6.	Exhibits	73
SIGNATURES			74
EXHIBIT INDEX			75

2

 

PART I. FINANCIAL INFORMATION

Item 1.    Financial Statements

VORNADO REALTY L.P.
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
(Amounts in thousands, except unit amounts)			June 30, 2016		December 31, 2015
ASSETS
Real estate, at cost:
	Land		$	4,154,201	$	4,164,799
	Buildings and improvements			12,541,161		12,582,671
	Development costs and construction in progress			1,302,108		1,226,637
	Leasehold improvements and equipment			112,096		116,030
		Total		18,109,566		18,090,137
	Less accumulated depreciation and amortization			(3,374,867)		(3,418,267)
Real estate, net				14,734,699		14,671,870
Cash and cash equivalents				1,644,067		1,835,707
Restricted cash				94,628		107,799
Marketable securities				194,489		150,997
Tenant and other receivables, net of allowance for doubtful accounts of $11,260 and $11,908				95,623		98,062
Investments in partially owned entities				1,499,792		1,550,422
Real estate fund investments				524,150		574,761
Receivable arising from the straight-lining of rents, net of allowance of $2,489 and $2,751				991,953		931,245
Deferred leasing costs, net of accumulated amortization of $227,015 and $218,239				462,649		480,421
Identified intangible assets, net of accumulated amortization of $194,463 and $187,360				210,010		227,901
Assets related to discontinued operations				8,678		37,020
Other assets				612,992		477,088
			$	21,073,730	$	21,143,293
LIABILITIES, REDEEMABLE PARTNERSHIP UNITS AND EQUITY
Mortgages payable, net			$	9,746,818	$	9,513,713
Senior unsecured notes, net				844,868		844,159
Unsecured revolving credit facilities				115,630		550,000
Unsecured term loan, net				371,455		183,138
Accounts payable and accrued expenses				480,094		443,955
Deferred revenue				314,367		346,119
Deferred compensation plan				119,292		117,475
Liabilities related to discontinued operations				8,104		12,470
Other liabilities				480,030		426,965
	Total liabilities			12,480,658		12,437,994
Commitments and contingencies
Redeemable partnership units:
	Class A units - 12,385,829 and 12,242,820 units outstanding			1,240,069		1,223,793
	Series D cumulative redeemable preferred units - 177,101 units outstanding			5,428		5,428
		Total redeemable partnership units		1,245,497		1,229,221
Equity:
	Partners' capital			8,420,056		8,417,454
	Earnings less than distributions			(1,898,505)		(1,766,780)
	Accumulated other comprehensive income			72,556		46,921
		Total Vornado Realty L.P. equity		6,594,107		6,697,595
Noncontrolling interests in consolidated subsidiaries				753,468		778,483
	Total equity			7,347,575		7,476,078
			$	21,073,730	$	21,143,293
See notes to consolidated financial statements (unaudited).

3

 

VORNADO REALTY L.P.
CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
(Amounts in thousands, except per unit amounts)		For the Three Months Ended				For the Six Months Ended
		June 30,				June 30,
		2016		2015		2016		2015
REVENUES:
	Property rentals	$	527,178	$	514,843	$	1,046,670	$	1,015,117
	Tenant expense reimbursements		60,841		62,215		120,416		129,136
	Fee and other income		33,689		39,230		67,659		78,837
Total revenues			621,708		616,288		1,234,745		1,223,090
EXPENSES:
	Operating		245,138		242,690		501,487		497,183
	Depreciation and amortization		141,313		136,957		284,270		261,079
	General and administrative		45,564		39,189		94,268		97,681
	Impairment loss and acquisition and transaction related costs		2,879		4,061		168,186		6,042
Total expenses			434,894		422,897		1,048,211		861,985
Operating income			186,814		193,391		186,534		361,105
Income (loss) from partially owned entities			642		(5,641)		(3,598)		(8,384)
Income from real estate fund investments			16,389		26,368		27,673		50,457
Interest and other investment income, net			10,236		5,666		13,754		16,458
Interest and debt expense			(105,576)		(92,092)		(206,065)		(183,766)
Net gain on disposition of wholly owned and partially owned assets			159,511		-		160,225		1,860
Income before income taxes			268,016		127,692		178,523		237,730
Income tax (expense) benefit			(2,109)		88,072		(4,940)		87,101
Income from continuing operations			265,907		215,764		173,583		324,831
Income (loss) from discontinued operations			2,475		(364)		3,191		15,815
Net income			268,382		215,400		176,774		340,646
Less net income attributable to noncontrolling interests in
	consolidated subsidiaries		(13,025)		(19,186)		(22,703)		(35,068)
Net income attributable to Vornado Realty L.P.			255,357		196,214		154,071		305,578
Preferred unit distributions			(20,412)		(20,414)		(40,824)		(39,910)
NET INCOME attributable to Class A unitholders		$	234,945	$	175,800	$	113,247	$	265,668
INCOME PER CLASS A UNIT - BASIC:
	Income from continuing operations, net	$	1.16	$	0.88	$	0.54	$	1.25
	Income from discontinued operations, net		0.01		-		0.02		0.08
	Net income per Class A unit	$	1.17	$	0.88	$	0.56	$	1.33
	Weighted average units outstanding		200,369		199,038		200,220		198,857
INCOME PER CLASS A UNIT - DILUTED:
	Income from continuing operations, net	$	1.15	$	0.87	$	0.54	$	1.23
	Income from discontinued operations, net		0.01		-		0.01		0.08
	Net income per Class A unit	$	1.16	$	0.87	$	0.55	$	1.31
	Weighted average units outstanding		201,975		200,833		201,821		200,833
DISTRIBUTIONS PER CLASS A UNIT		$	0.63	$	0.63	$	1.26	$	1.26
See notes to consolidated financial statements (unaudited).

4

 

VORNADO REALTY L.P.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(UNAUDITED)
(Amounts in thousands)			For the Three Months Ended				For the Six Months Ended
			June 30,				June 30,
			2016		2015		2016		2015
Net income			$	268,382	$	215,400	$	176,774	$	340,646
Other comprehensive income (loss):
	Increase (reduction) in unrealized net gain on
		available-for-sale securities		28,019		(25,000)		39,113		(46,332)
	Pro rata share of other comprehensive loss of
		nonconsolidated subsidiaries		(628)		(1,191)		(622)		(1,034)
	(Reduction) increase in value of interest rate swaps and other			(6,976)		2,848		(11,171)		2,077
Comprehensive income				288,797		192,057		204,094		295,357
Less comprehensive income attributable to noncontrolling interests
	in consolidated subsidiaries			(13,025)		(19,186)		(22,703)		(35,068)
Comprehensive income attributable to Vornado Realty L.P.			$	275,772	$	172,871	$	181,391	$	260,289
See notes to consolidated financial statements (unaudited).

5

 

VORNADO REALTY L.P.
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
(UNAUDITED)
(Amounts in thousands)															Non-
													Accumulated		controlling
							Class A Units				Earnings		Other		Interests in
			Preferred Units				Owned by Vornado				Less Than		Comprehensive		Consolidated		Total
			Units		Amount		Units		Amount		Distributions		Income (Loss)		Subsidiaries		Equity
Balance, December 31, 2015				52,677	$	1,276,954		188,577	$	7,140,500	$	(1,766,780)	$	46,921	$	778,483	$	7,476,078
Net income attributable to Vornado Realty L.P.				-		-		-		-		154,071		-		-		154,071
Net income attributable to redeemable
	partnership units			-		-		-		-		(7,044)		-		-		(7,044)
Net income attributable to noncontrolling
	interests in consolidated subsidiaries			-		-		-		-		-		-		22,703		22,703
Distributions to Vornado				-		-		-		-		(237,832)		-		-		(237,832)
Distributions to preferred unitholders				-		-		-		-		(40,727)		-		-		(40,727)
Class A Units issued to Vornado:
	Upon redemption of redeemable Class A
		units, at redemption value		-		-		195		18,208		-		-		-		18,208
	Under Vornado's employees' share option plan			-		-		38		3,093		-		-		-		3,093
	Under Vornado's dividend reinvestment plan			-		-		8		717		-		-		-		717
Contributions:
	Other			-		-		-		-		-		-		19,674		19,674
Distributions:
	Real estate fund investments			-		-		-		-		-		-		(56,533)		(56,533)
	Other			-		-		-		-		-		-		(10,970)		(10,970)
Deferred compensation units and options				-		-		7		954		(186)		-		-		768
Increase in unrealized net gain on
	available-for-sale securities			-		-		-		-		-		39,113		-		39,113
Pro rata share of other comprehensive loss
	of nonconsolidated subsidiaries			-		-		-		-		-		(622)		-		(622)
Reduction in value of interest rate swaps				-		-		-		-		-		(11,170)		-		(11,170)
Adjustments to carry redeemable Class A
	units at redemption value			-		-		-		(20,369)		-		-		-		(20,369)
Redeemable partnership units' share of above
	adjustments			-		-		-		-		-		(1,685)		-		(1,685)
Other				-		-		1		(1)		(7)		(1)		111		102
Balance, June 30, 2016				52,677	$	1,276,954		188,826	$	7,143,102	$	(1,898,505)	$	72,556	$	753,468	$	7,347,575
See notes to consolidated financial statements (unaudited).

6

 

VORNADO REALTY L.P.
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY - CONTINUED
(UNAUDITED)
(Amounts in thousands)															Non-
													Accumulated		controlling
							Class A Units				Earnings		Other		Interests in
			Preferred Units				Owned by Vornado				Less Than		Comprehensive		Consolidated		Total
			Units		Amount		Units		Amount		Distributions		Income (Loss)		Subsidiaries		Equity
Balance, December 31, 2014				52,679	$	1,277,026		187,887	$	6,880,518	$	(1,505,385)	$	93,267	$	743,956	$	7,489,382
Net income attributable to Vornado Realty L.P.				-		-		-		-		305,578		-		-		305,578
Net income attributable to redeemable
	partnership units			-		-		-		-		(15,485)		-		-		(15,485)
Net income attributable to noncontrolling
	interests in consolidated subsidiaries			-		-		-		-		-		-		35,068		35,068
Distribution of Urban Edge properties				-		-		-		-		(464,262)		-		(341)		(464,603)
Distributions to Vornado				-		-		-		-		(237,160)		-		-		(237,160)
Distributions to preferred unitholders				-		-		-		-		(39,849)		-		-		(39,849)
Class A Units issued to Vornado:
	Upon redemption of redeemable Class A
		units, at redemption value		-		-		400		43,278		-		-		-		43,278
	Under Vornado's employees' share option plan			-		-		195		12,979		(2,579)		-		-		10,400
	Under Vornado's dividend reinvestment plan			-		-		7		701		-		-		-		701
Contributions:
	Real estate fund investments			-		-		-		-		-		-		51,725		51,725
Distributions:
	Real estate fund investments			-		-		-		-		-		-		(62,495)		(62,495)
	Other			-		-		-		-		-		-		(255)		(255)
Conversion of Series A preferred units
	to Class A units			(1)		(16)		1		16		-		-		-		-
Deferred compensation units and options				-		-		7		1,654		(359)		-		-		1,295
Reduction in unrealized net gain on
	available-for-sale securities			-		-		-		-		-		(46,332)		-		(46,332)
Pro rata share of other comprehensive loss
	of nonconsolidated subsidiaries			-		-		-		-		-		(1,034)		-		(1,034)
Increase in value of interest rate swaps				-		-		-		-		-		2,073		-		2,073
Adjustments to carry redeemable Class A
	units at redemption value			-		-		-		229,521		-		-		-		229,521
Redeemable partnership units' share of above
	adjustments			-		-		-		-		-		2,635		-		2,635
Other				-		-		-		-		955		4		(92)		867
Balance, June 30, 2015				52,678	$	1,277,010		188,497	$	7,168,667	$	(1,958,546)	$	50,613	$	767,566	$	7,305,310
See notes to consolidated financial statements (unaudited).

7

 

VORNADO REALTY L.P.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
(Amounts in thousands)			For the Six Months Ended June 30,
			2016		2015
Cash Flows from Operating Activities:
Net income			$	176,774	$	340,646
Adjustments to reconcile net income to net cash provided by operating activities:
	Depreciation and amortization (including amortization of deferred financing costs)			299,541		272,942
	Real estate impairment losses			160,700		256
	Net gain on disposition of wholly owned and partially owned assets			(160,225)		(1,860)
	Straight-lining of rental income			(83,883)		(64,121)
	Return of capital from real estate fund investments			71,888		83,443
	Distributions of income from partially owned entities			46,500		37,821
	Amortization of below-market leases, net			(29,811)		(26,132)
	Other non-cash adjustments			23,049		26,569
	Net realized and unrealized gains on real estate fund investments			(21,277)		(41,857)
	Loss from partially owned entities			3,598		7,636
	Net gains on sale of real estate and other			(2,210)		(32,243)
	Reversal of allowance for deferred tax assets			-		(90,030)
	Changes in operating assets and liabilities:
		Real estate fund investments		-		(95,000)
		Tenant and other receivables, net		2,358		(5,051)
		Prepaid assets		(131,927)		(138,473)
		Other assets		(29,303)		(46,858)
		Accounts payable and accrued expenses		6,634		(26,440)
		Other liabilities		(9,113)		(16,632)
Net cash provided by operating activities				323,293		184,616
Cash Flows from Investing Activities:
	Development costs and construction in progress			(277,214)		(200,970)
	Additions to real estate			(170,265)		(137,528)
	Proceeds from sales of real estate and related investments			130,249		334,725
	Investments in partially owned entities			(90,659)		(137,465)
	Distributions of capital from partially owned entities			87,977		29,666
	Acquisitions of real estate and other			(46,807)		(381,001)
	Net deconsolidation of 7 West 34th Street			(42,000)		-
	Investments in loans receivable and other			(11,700)		(23,919)
	Restricted cash			(7,483)		25,118
	Purchases of marketable securities			(4,379)		-
	Proceeds from sales and repayments of mortgage and mezzanine loans receivable and other			22		16,772
Net cash used in investing activities				(432,259)		(474,602)
See notes to consolidated financial statements (unaudited).

8

 

VORNADO REALTY L.P.
CONSOLIDATED STATEMENTS OF CASH FLOWS - CONTINUED
(UNAUDITED)
(Amounts in thousands)				For the Six Months Ended June 30,
				2016		2015
Cash Flows from Financing Activities:
	Proceeds from borrowings			$	1,325,246	$	1,746,460
	Repayments of borrowings				(1,032,115)		(1,607,574)
	Distributions to Vornado				(237,832)		(237,160)
	Distributions to redeemable security holders and noncontrolling interests
		in consolidated subsidiaries			(83,266)		(77,447)
	Distributions to preferred unitholders				(40,727)		(39,849)
	Debt issuance and other costs				(29,478)		(14,053)
	Contributions from noncontrolling interests in consolidated subsidiaries				11,874		51,725
	Proceeds received from exercise of Vornado stock options				3,810		13,683
	Repurchase of Class A units related to equity compensation agreements and related
		tax withholdings and other			(186)		(2,939)
	Cash included in the spin-off of Urban Edge Properties				-		(225,000)
Net cash used in financing activities					(82,674)		(392,154)
Net decrease in cash and cash equivalents					(191,640)		(682,140)
Cash and cash equivalents at beginning of period					1,835,707		1,198,477
Cash and cash equivalents at end of period				$	1,644,067	$	516,337
Supplemental Disclosure of Cash Flow Information:
	Cash payments for interest, excluding capitalized interest of $13,918 and $17,550			$	181,432	$	178,461
	Cash payments for income taxes			$	5,003	$	6,584
Non-Cash Investing and Financing Activities:
	Write-off of fully depreciated assets			$	(220,654)	$	(81,027)
	Accrued capital expenditures included in accounts payable and accrued expenses				144,079		70,672
	Change in unrealized net gain (loss) on securities available-for-sale				39,113		(46,332)
	Adjustments to carry redeemable Class A units at redemption value				(20,369)		229,521
	Decrease in assets and liabilities resulting from the deconsolidation of investments
		that were previously consolidated
			Real estate, net		(122,047)		-
			Mortgages payable, net		(290,418)		-
	Non-cash distribution of Urban Edge Properties:
			Assets		-		1,722,263
			Liabilities		-		(1,482,660)
			Equity		-		(239,603)
	Transfer of interest in real estate to Pennsylvania Real Estate Investment Trust				-		(145,313)
	Financing assumed in acquisitions				-		62,000
	Like-kind exchange of real estate:
			Acquisitions		46,698		62,355
			Dispositions		(29,639)		(38,822)
See notes to consolidated financial statements (unaudited).

9

 

VORNADO REALTY L.P.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

1.     Organization

Vornado Realty L.P. (the “Operating Partnership” and/or the “Company”) is a Delaware limited partnership.  Vornado Realty Trust (“Vornado”) is the sole general partner of, and owned approximately 93.6% of the common limited partnership interest in, the Operating Partnership at June 30, 2016.  All references to “we,” “us,” “our,” the “Company” and “Operating Partnership” refer to Vornado Realty L.P. and its consolidated subsidiaries.

2.    Basis of Presentation

The accompanying consolidated financial statements are unaudited and include the accounts of Vornado Realty L.P. and its consolidated subsidiaries.  All inter-company amounts have been eliminated. In our opinion, all adjustments (which include only normal recurring adjustments) necessary to present fairly the financial position, results of operations and changes in cash flows have been made. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) have been condensed or omitted.  These condensed consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q of the Securities and Exchange Commission(“SEC”) and should be read in conjunction with the consolidated financial statements and notes thereto included in our Annual Report on Form 10-K, as amended, for the year ended December 31, 2015, as filed with the SEC.

We have made estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates.  The results of operations for the three and six months ended June 30, 2016 are not necessarily indicative of the operating results for the full year.  

3.    Recently Issued Accounting Literature

In May 2014, the Financial Accounting Standards Board(“FASB”) issued an update ("ASU 2014-09") establishing Accounting Standards Codification (“ASC”) Topic 606, Revenue from Contracts with Customers (“ASC 606”).  ASU 2014-09 establishes a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most of the existing revenue recognition guidance.  ASU 2014-09 requires an entity to recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services and also requires certain additional disclosures.  In August 2015, the FASB issued an update (“ASU 2015-14”) to ASC 606, Deferral of the Effective Date, which defers the adoption of ASU 2014-09 to interim and annual reporting periods in fiscal years that begin after December 15, 2017.  In March 2016, the FASB issued an update (“ASU 2016-08”) to ASC 606, Principal versus Agent Considerations (Reporting Revenue Gross versus Net), which clarifies the implementation guidance on principal versus agent considerations in the new revenue recognition standard pursuant to ASU 2014-09.  In April 2016, the FASB issued an update (“ASU 2016-10”) to ASC 606, Identifying Performance Obligations and Licensing, which clarifies guidance related to identifying performance obligations and licensing implementation guidance contained in ASU 2014-09.  In May 2016, the FASB issued an update (“ASU 2016-12”) to ASC 606, Narrow-Scope Improvements and Practical Expedients, which amends certain aspects of the new revenue recognition standard pursuant to ASU 2014-09.  We are currently evaluating the impact of the adoption of these ASUs on our consolidated financial statements.

In June 2014, the FASB issued an update (“ASU 2014-12”) to ASC Topic 718, Compensation – Stock Compensation (“ASC 718”).  ASU 2014-12 requires an entity to treat performance targets that can be met after the requisite service period of a share based award has ended, as a performance condition that affects vesting.  ASU 2014-12 is effective for interim and annual reporting periods in fiscal years that began after December 15, 2015.  The adoption of this update as of January 1, 2016, did not have any impact on our consolidated financial statements.

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3.    Recently Issued Accounting Literature - continued

In February 2015, the FASB issued an update (“ASU 2015-02”) Amendments to the Consolidation Analysis to ASC Topic 810, Consolidation.  ASU 2015-02 affects reporting entities that are required to evaluate whether they should consolidate certain legal entities.  Specifically, the amendments: (i) modify the evaluation of whether limited partnerships and similar legal entities are variable interest entities ("VIEs") or voting interest entities, (ii) eliminate the presumption that a general partner should consolidate a limited partnership, (iii) affect the consolidation analysis of reporting entities that are involved with VIEs, and (iv) provide a scope exception for certain entities.  ASU 2015-02 is effective for interim and annual reporting periods beginning after December 15, 2015.  The adoption of this update on January 1, 2016 resulted in the identification of additional VIEs, but did not have an impact on our consolidated financial statements other than additional disclosures (see Note 13 - Variable Interest Entities).

In January 2016, the FASB issued an update (“ASU 2016-01”) Recognition and Measurement of Financial Assets and Financial Liabilities to ASC Topic 825, Financial Instruments.  ASU 2016-01 amends certain aspects of recognition, measurement, presentation and disclosure of financial instruments, including the requirement to measure certain equity investments at fair value with changes in fair value recognized in net income.  ASU 2016-01 is effective for interim and annual reporting periods in fiscal years beginning after December 15, 2017.  We are currently evaluating the impact of the adoption of ASU 2016-01 on our consolidated financial statements.

In February 2016, the FASB issued (“ASU 2016-02”) Leases, which sets out the principles for the recognition, measurement, presentation and disclosure of leases for both lessees and lessors.  ASU 2016-02 requires lessees to apply a dual approach, classifying leases as either finance or operating leases based on the principle of whether or not the lease is effectively a financed purchase.  Lessees are required to record a right-of-use asset and a lease liability for all leases with a term of greater than 12 months. Leases with a term of 12 months or less will be accounted for similar to existing guidance for operating leases.  Lessees will recognize expense based on the effective interest method for finance leases or on a straight-line basis for operating leases.  The new standard requires lessors to account for leases using an approach that is substantially equivalent to existing guidance.  ASU 2016-02 is effective for reporting periods beginning after December 15, 2018, with early adoption permitted.  We are currently evaluating the impact of the adoption of ASU 2016-02 on our consolidated financial statements.

In March 2016, the FASB issued an update (“ASU 2016-09”) Improvements to Employee Share-Based Payment Accounting to ASC 718.  ASU 2016-09 amends several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows.  ASU 2016-09 is effective for interim and annual reporting periods in fiscal years beginning after December 15, 2017.  We are currently evaluating the impact of the adoption of ASU 2016-09 on our consolidated financial statements.

4.    Acquisitions

On May 20, 2016, we contributed $19,650,000 for a 50.0% equity interest in a joint venture that will develop a 33,000 square foot office and retail building, located on Houston Street in Manhattan.  The development cost of this project is estimated to be approximately $104,000,000.  At closing, the joint venture obtained a $65,000,000 construction loan, of which approximately $22,100,000 was outstanding at June 30, 2016.  The loan, which bears interest at LIBOR plus 3.00% (3.47% at June 30, 2016), matures in May 2019 with two one-year extension options.  Because this joint venture is a VIE and we determined we are the primary beneficiary, we consolidate the accounts of this joint venture from the date of our investment.

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5.     Real Estate Fund Investments

We are the general partner and investment manager of Vornado Capital Partners Real Estate Fund (the “Fund”), which has an eight-year term and a three-year investment period that ended in July 2013. During the investment period, the Fund was our exclusive investment vehicle for all investments that fit within its investment parameters, as defined.  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 Crowne Plaza Times Square Hotel Co-Investment (the “Co-Investment”), which owns a 24.7% interest in the Crowne Plaza Times Square Hotel.  The Fund owns the remaining 75.3% interest.  The Co-Investment is also accounted for under ASC 946.  We consolidate the accounts of the Co-Investment into our consolidated financial statements, retaining the fair value basis of accounting.

At June 30, 2016, we had six real estate fund investments with an aggregate fair value of $524,150,000, or $215,215,000 in excess of cost, and had remaining unfunded commitments of $117,907,000, of which our share was $34,522,000.  Below is a summary of income from the Fund and the Co-Investment for the three and six months ended June 30, 2016 and 2015.

(Amounts in thousands)		For the Three Months Ended				For the Six Months Ended
		June 30,				June 30,
		2016		2015		2016		2015
Net investment income		$	1,723	$	2,150	$	6,396	$	8,600
Net realized gains on exited investments			-		886		14,676		25,591
Previously recorded unrealized gain on exited investment			-		-		(14,254)		(23,279)
Net unrealized gains on held investments			14,666		23,332		20,855		39,545
Income from real estate fund investments			16,389		26,368		27,673		50,457
Less income attributable to noncontrolling interests			(8,845)		(15,872)		(14,818)		(29,411)
Income from real estate fund investments attributable to Vornado Realty L.P.(1)		$	7,544	$	10,496	$	12,855	$	21,046
(1)	Excludes management, leasing and development fees of $935 and $633 for the three months ended June 30, 2016 and 2015, respectively, and $1,695 and $1,337 for the six months ended June 30, 2016 and 2015, respectively, which are included as a component of "fee and other income" in our consolidated statements of income.

6.    Marketable Securities

Below is a summary of our marketable securities portfolio as of June 30, 2016 and December 31, 2015.

(Amounts in thousands)		As of June 30, 2016						As of December 31, 2015
				GAAP		Unrealized				GAAP		Unrealized
		Fair Value		Cost		Gain		Fair Value		Cost		Gain
Equity securities:
	Lexington Realty Trust	$	186,721	$	72,549	$	114,172	$	147,752	$	72,549	$	75,203
	Other		7,768		4,379		3,389		3,245		-		3,245
		$	194,489	$	76,928	$	117,561	$	150,997	$	72,549	$	78,448

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7.    Investments in Partially Owned Entities

Alexander’s, Inc. (“Alexander’s”) (NYSE: ALX)

As of June 30, 2016, we own 1,654,068 Alexander’s common shares, representing a 32.4% interest in Alexander’s.  We account for our investment in Alexander’s under the equity method.  We manage, lease and develop Alexander’s properties pursuant to agreements which expire in March of each year and are automatically renewable.

As of June 30, 2016, the market value (“fair value” pursuant to ASC Topic 820, Fair Value Measurements (“ASC 820”)) of our investment in Alexander’s, based on Alexander’s June 30, 2016 closing share price of $409.23, was $676,894,000, or $547,099,000 in excess of the carrying amount on our consolidated balance sheet.  As of June 30, 2016, the carrying amount of our investment in Alexander’s, excluding amounts owed to us, exceeds our share of the equity in the net assets of Alexander’s by approximately $39,786,000.  The majority of this basis difference resulted from the excess of our purchase price for the Alexander’s common stock acquired over the book value of Alexander’s net assets.  Substantially all of this basis difference was allocated, based on our estimates of the fair values of Alexander’s assets and liabilities, to real estate (land and buildings).  We are amortizing the basis difference related to the buildings into earnings as additional depreciation expense over their estimated useful lives.  This depreciation is not material to our share of equity in Alexander’s net income.  The basis difference related to the land will be recognized upon disposition of our investment.

Urban Edge Properties (“UE”) (NYSE: UE)

As of June 30, 2016, we own 5,717,184 UE operating partnership units, representing a 5.4% ownership interest in UE.  We account for our investment in UE under the equity method and record our share of UE’s net income or loss on a one-quarter lag basis.  During 2015, we provided transition services to UE, primarily for information technology, human resources, tax and financial planning.  In 2016, we continue to provide UE information technology support.  UE is providing us with leasing and property management services for (i) certain small retail properties that we plan to sell, and (ii) our affiliate, Alexander’s, Rego Park retail assets.  As of June 30, 2016, the fair value of our investment in UE, based on UE’s June 30, 2016 closing share price of $29.86, was $170,715,000, or $146,847,000 in excess of the carrying amount on our consolidated balance sheet.

Pennsylvania Real Estate Investment Trust (“PREIT”) (NYSE: PEI)

As of June 30, 2016, we own 6,250,000 PREIT operating partnership units, representing an 8.0% interest in PREIT.  We account for our investment in PREIT under the equity method and record our share of PREIT’s net income or loss on a one-quarter lag basis.  As of June 30, 2016, the fair value of our investment in PREIT, based on PREIT’s June 30, 2016 closing share price of $21.45, was $134,063,000, or $8,241,000 in excess of the carrying amount on our consolidated balance sheet.  As of June 30, 2016, the carrying amount of our investment in PREIT exceeds our share of the equity in the net assets of PREIT by approximately $64,712,000.  The majority of this basis difference resulted from the excess of the fair value of the PREIT operating units received over our share of the book value of PREIT’s net assets.  Substantially all of this basis difference was allocated, based on our estimates of the fair values of PREIT’s assets and liabilities, to real estate (land and buildings).  We are amortizing the basis difference related to the buildings into earnings as additional depreciation expense over their estimated useful lives.  This depreciation is not material to our share of equity in PREIT’s net loss.  The basis difference related to the land will be recognized upon disposition of our investment.

One Park Avenue

On March 7, 2016, the joint venture, in which we have a 55% ownership interest, completed a $300,000,000 refinancing of One Park Avenue, a 947,000 square foot Manhattan office building.  The loan matures in March 2021 and is interest only at LIBOR plus 1.75% (2.21% at June 30, 2016).  The property was previously encumbered by a 4.995%, $250,000,000 mortgage which matured in March 2016.

Mezzanine Loan – New York

On March 17, 2016, we entered into a joint venture, in which we own a 33.3% interest, which owns a $142,050,000 mezzanine loan.  The interest rate is LIBOR plus 8.875% (9.32% at June 30, 2016) and the debt matures in November 2016, with two three-month extension options.  At June 30, 2016, the joint venture has a $7,950,000 remaining commitment, of which our share is $2,650,000.  The joint venture’s investment is subordinate to $350,000,000 of third party debt.  We account for our investment in the joint venture under the equity method.

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(UNAUDITED)

7.    Investments in Partially Owned Entities – continued

The Warner Building

On May 6, 2016, the joint venture, in which we have a 55% ownership interest, completed a $273,000,000 refinancing of The Warner Building, a 621,000 square foot Washington, DC office building.  The loan matures in June 2023, has a fixed rate of 3.65%, is interest only for the first two years and amortizes based on a 30-year schedule beginning in year three. The property was previously encumbered by a 6.26%, $293,000,000 mortgage which matured in May 2016.

280 Park Avenue

On May 11, 2016, the joint venture, in which we have a 50% ownership interest, completed a $900,000,000 refinancing of 280 Park Avenue, a 1,250,000 square foot Manhattan office building.  The three-year loan with four one-year extensions is interest only at LIBOR plus 2.00%, (2.45% at June 30, 2016).  The property was previously encumbered by a 6.35%, $721,000,000 mortgage which was scheduled to mature in June 2016.

7 West 34th Street

On May 16, 2016, we completed a $300,000,000 recourse financing of 7 West 34th Street, a 477,000 square foot Manhattan office building leased to Amazon.  The ten-year loan is interest only at a fixed rate of 3.65% and matures in June 2026.  Subsequently, on May 27, 2016, we sold a 47% ownership interest in this property and retained the remaining 53% interest.  This transaction was based on a property value of approximately $561,000,000 or $1,176 per square foot.  We received net proceeds of $127,382,000 from the sale and realized a net gain of $203,324,000, of which $159,511,000 is recognized this quarter and is included in “net gain on disposition of wholly owned and partially owned assets” in our consolidated statements of income.  The remaining net gain of $43,813,000 has been deferred until our guarantee of payment of loan principal and interest has been removed or the loan has been repaid.   We realized a net tax gain of $90,017,000.  We continue to manage and lease the property.  We share control over major decisions with our joint venture partner.  Accordingly, this property is accounted for under the equity method from the date of sale.

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(UNAUDITED)

7.    Investments in Partially Owned Entities – continued

Below are schedules summarizing our investments in, and income (loss) from, partially owned entities.

(Amounts in thousands)		Percentage
		Ownership at		Balance as of
		June 30, 2016		June 30, 2016		December 31, 2015
Investments:
	Partially owned office buildings (1)		Various	$	811,984	$	909,782
	Alexander’s		32.4%		129,795		133,568
	PREIT		8.0%		125,822		133,375
	India real estate ventures		4.1%-36.5%		45,139		48,310
	UE		5.4%		23,868		25,351
	Other investments (2)		Various		363,184		300,036
				$	1,499,792	$	1,550,422
	7 West 34th Street (3)		53.0%	$	(43,160)	$	-
(1)	Includes interests in 280 Park Avenue, 650 Madison Avenue, One Park Avenue, 666 Fifth Avenue (Office), 330 Madison Avenue, 512 West 22nd Street and others.
(2)	Includes interests in Independence Plaza, 85 Tenth Avenue, Fashion Center Mall, 50-70 West 93rd Street, Toys "R" Us, Inc. (which has a carrying amount of zero) and others.
(3)	Our negative basis results from a $43,813 deferred gain from the sale of a 47.0% ownership interest in the property and is included in "other liabilities" on our consolidated balance sheet.

(Amounts in thousands)				Percentage		For the Three Months Ended				For the Six Months Ended
				Ownership at		June 30,				June 30,
				June 30, 2016		2016		2015		2016		2015
Our Share of Net Income (Loss):
		Alexander's (see page 13 for details):
			Equity in net income		32.4%	$	6,812	$	5,447	$	13,749	$	11,041
			Management, leasing and development fees				1,688		1,876		3,413		3,973
							8,500		7,323		17,162		15,014
		UE (see page 13 for details):
			Equity in net earnings		5.4%		1,071		404		1,947		404
			Management fees				209		500		418		1,084
							1,280		904		2,365		1,488
		Partially owned office buildings (1)			Various		(12,462)		(3,238)		(26,711)		(12,534)
		India real estate ventures			4.1%-36.5%		(1,934)		(16,567)		(2,620)		(16,676)
		PREIT (see page 13 for details)			8.0%		(527)		(364)		(4,815)		(364)
		Other investments (2)			Various		5,785		6,301		11,021		4,688
						$	642	$	(5,641)	$	(3,598)	$	(8,384)
(1)	Includes interests in 280 Park Avenue, 650 Madison Avenue, One Park Avenue, 666 Fifth Avenue (Office), 7 West 34th Street, 330 Madison Avenue, 512 West 22nd Street and others.  In 2015, we recognized our $5,387 share of a write-off of a below market lease liability related to a tenant vacating at 650 Madison.
(2)	Includes interests in Independence Plaza, 85 Tenth Avenue, Fashion Center Mall, 50-70 West 93rd Street, Toys "R" Us, Inc. and others.

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(UNAUDITED)

8.    Dispositions

Discontinued Operations

The tables below set forth the assets and liabilities related to discontinued operations at June 30, 2016 and December 31, 2015 and their combined results of operations and cash flows for the three and six months ended June 30, 2016 and 2015.

(Amounts in thousands)					Balance as of
					June 30, 2016		December 31, 2015
Assets related to discontinued operations:
Real estate, net					$	3,111	$	29,561
Other assets						5,567		7,459
					$	8,678	$	37,020
Liabilities related to discontinued operations:
Other liabilities					$	8,104	$	12,470
(Amounts in thousands)	For the Three Months Ended June 30,				For the Six Months Ended June 30,
	2016		2015		2016		2015
Income (loss) from discontinued operations:
Total revenues	$	947	$	1,983	$	2,129	$	22,279
Total expenses		682		2,020		1,148		15,393
		265		(37)		981		6,886
Net gains on sale of real estate		2,210		-		2,210		10,867
UE spin-off transaction related costs		-		(327)		-		(22,972)
Net gain on sale of lease position in Geary Street, CA		-		-		-		21,376
Impairment losses		-		-		-		(256)
Pretax income from discontinued operations		2,475		(364)		3,191		15,901
Income tax expense		-		-		-		(86)
Income (loss) from discontinued operations	$	2,475	$	(364)	$	3,191	$	15,815
(Amounts in thousands)					For the Six Months Ended June 30,
					2016		2015
Cash flows related to discontinued operations:
Cash flows from operating activities					$	(4,685)	$	(35,738)
Cash flows from investing activities						-		310,069

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(UNAUDITED)

9.    Identified Intangible Assets and Liabilities

The following summarizes our identified intangible assets (primarily above-market leases) and liabilities (primarily acquired below-market leases) as of June 30, 2016 and December 31, 2015.

(Amounts in thousands)	Balance as of
	June 30, 2016		December 31, 2015
Identified intangible assets:
Gross amount	$	404,473	$	415,261
Accumulated amortization		(194,463)		(187,360)
Net	$	210,010	$	227,901
Identified intangible liabilities (included in deferred revenue):
Gross amount	$	600,722	$	643,488
Accumulated amortization		(311,197)		(325,340)
Net	$	289,525	$	318,148

Amortization of acquired below-market leases, net of acquired above-market leases, resulted in an increase to rental income of $12,301,000 and $13,378,000 for the three months ended June 30, 2016 and 2015, respectively, and $29,808,000 and $25,828,000 for the six months ended June 30, 2016 and 2015, respectively.  Estimated annual amortization of acquired below-market leases, net of acquired above-market leases, for each of the five succeeding years commencing January 1, 2017 is as follows:

(Amounts in thousands)
2017	$	45,361
2018		44,101
2019		31,937
2020		23,365
2021		18,287

Amortization of all other identified intangible assets (a component of depreciation and amortization expense) was $8,066,000 and $5,309,000 for the three months ended June 30, 2016 and 2015, respectively, and $15,859,000 and $11,494,000 for the six months ended June 30, 2016 and 2015, respectively.  Estimated annual amortization of all other identified intangible assets including acquired in-place leases, customer relationships, and third party contracts for each of the five succeeding years commencing January 1, 2017 is as follows:

(Amounts in thousands)
2017	$	24,795
2018		20,541
2019		16,202
2020		12,404
2021		11,032

We are a tenant under ground leases for certain properties.  Amortization of these acquired below-market leases, net of above-market leases, resulted in an increase to rent expense of $458,000 and $458,000 for the three months ended June 30, 2016 and 2015, respectively, and $916,000 and $916,000 for the six months ended June 30, 2016 and 2015.  Estimated annual amortization of these below-market leases, net of above-market leases, for each of the five succeeding years commencing January 1, 2017 is as follows:

(Amounts in thousands)
2017	$	1,832
2018		1,832
2019		1,832
2020		1,832
2021		1,832

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(UNAUDITED)

10.    Debt

On February 8, 2016, we completed a $700,000,000 refinancing of 770 Broadway, a 1,158,000 square foot Manhattan office building.  The five-year loan is interest only at LIBOR plus 1.75%, (2.21% at June 30, 2016) which was swapped for four and a half years to a fixed rate of 2.56%.  The Company realized net proceeds of approximately $330,000,000.  The property was previously encumbered by a 5.65%, $353,000,000 mortgage which matured in March 2016.

On March 15, 2016, we notified the servicer of the $678,000,000 mortgage loan on the Skyline properties in Virginia that cash flow will be insufficient to service the debt and pay other property related costs and expenses and that we were not willing to fund additional cash shortfalls.  Accordingly, at our request, the loan has been transferred to the special servicer. Consequently, based on our shortened estimated holding period for the underlying assets, we concluded that the excess of carrying amount over our estimate of fair value was not recoverable and recognized a $160,700,000 non-cash impairment loss in the first quarter of 2016.  The Company’s estimate of fair value was derived from a discounted cash flow model based upon market conditions and expectations of growth and utilized unobservable quantitative inputs including a capitalization rate of 8.0% and a discount rate of 8.2%.  In the second quarter of 2016, cash flow became insufficient to service the debt and we ceased making debt service payments.  Pursuant to the loan agreement, the loan is in default, causing the loan to be immediately due and payable, and is subject to incremental default interest which increased the weighted average interest rate from 2.97% to 4.51% while the outstanding balance remains unpaid. For the three and six months ended June 30, 2016, we accrued $2,711,000 of default interest expense.  We continue to negotiate with the special servicer.  There can be no assurance as to the timing or ultimate resolution of this matter.

The following is a summary of our debt:

(Amounts in thousands)			Interest Rate at		Balance at
			June 30, 2016		June 30, 2016		December 31, 2015
Mortgages Payable:
	Fixed rate			4.17%	$	6,571,398	$	6,356,634
	Variable rate			2.28%		3,281,935		3,258,204
		Total		3.54%		9,853,333		9,614,838
	Deferred financing costs, net and other					(106,515)		(101,125)
		Total, net			$	9,746,818	$	9,513,713
Unsecured Debt:
	Senior unsecured notes			3.68%	$	850,000	$	850,000
	Deferred financing costs, net and other					(5,132)		(5,841)
		Senior unsecured notes, net				844,868		844,159
	Unsecured term loan			1.61%		375,000		187,500
	Deferred financing costs, net and other					(3,545)		(4,362)
		Unsecured term loan, net				371,455		183,138
	Unsecured revolving credit facilities			1.51%		115,630		550,000
		Total, net			$	1,331,953	$	1,577,297

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(UNAUDITED)

11.    Redeemable Partnership Units

Redeemable partnership units on our consolidated balance sheets are comprised primarily of Class A units held by third parties and are recorded at the greater of their carrying amount or redemption value at the end of each reporting period.  Changes in the value from period to period are charged to “partners’ capital” on our consolidated balance sheets.  Below is a table summarizing the activity of our redeemable partnership units.

(Amounts in thousands)
Balance at December 31, 2014	$	1,337,780
Net income		15,485
Other comprehensive loss		(2,635)
Distributions		(14,734)
Redemption of Class A units, at redemption value		(43,278)
Adjustments to carry redeemable Class A units at redemption value		(229,521)
Issuance of Series D-17 Preferred Units		4,427
Other, net		25,370
Balance at June 30, 2015	$	1,092,894
Balance at December 31, 2015	$	1,229,221
Net income		7,044
Other comprehensive income		1,685
Distributions		(15,763)
Redemption of Class A units, at redemption value		(18,208)
Adjustments to carry redeemable Class A units at redemption value		20,369
Other, net		21,149
Balance at June 30, 2016	$	1,245,497

As of June 30, 2016 and December 31, 2015, the aggregate redemption value of redeemable Class A units, which are those units held by third parties, was $1,240,069,000 and $1,223,793,000, respectively. 

Redeemable partnership units exclude our Series G-1 through G-4 convertible preferred units and Series D-13 cumulative redeemable preferred units, as they are accounted for as liabilities in accordance with ASC 480, Distinguishing Liabilities and Equity, because of their possible settlement by issuing a variable number of Vornado common shares.  Accordingly, the fair value of these units is included as a component of “other liabilities” on our consolidated balance sheets and aggregated $50,561,000 as of June 30, 2016 and December 31, 2015.    Changes in the value from period to period, if any, are charged to “interest and debt expense” in our consolidated statements of income. 

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12.    Accumulated Other Comprehensive Income (“AOCI”)

The following tables set forth the changes in accumulated other comprehensive income by component.

(Amounts in thousands)				Securities		Pro rata share of		Interest
				available-		nonconsolidated		rate
		Total		for-sale		subsidiaries' OCI		swaps		Other
For the Three Months Ended June 30, 2016
Balance as of March 31, 2016		$	53,399	$	89,542	$	(9,313)	$	(23,563)	$	(3,267)
	OCI before reclassifications		19,157		28,019		(628)		(6,975)		(1,259)
	Amounts reclassified from AOCI		-		-		-		-		-
Net current period OCI			19,157		28,019		(628)		(6,975)		(1,259)
Balance as of June 30, 2016		$	72,556	$	117,561	$	(9,941)	$	(30,538)	$	(4,526)
For the Three Months Ended June 30, 2015
Balance as of March 31, 2015		$	72,609	$	112,442	$	(8,835)	$	(26,579)	$	(4,419)
	OCI before reclassifications		(21,996)		(25,000)		(1,191)		2,849		1,346
	Amounts reclassified from AOCI		-		-		-		-		-
Net current period OCI			(21,996)		(25,000)		(1,191)		2,849		1,346
Balance as of June 30, 2015		$	50,613	$	87,442	$	(10,026)	$	(23,730)	$	(3,073)
For the Six Months Ended June 30, 2016
Balance as of December 31, 2015		$	46,921	$	78,448	$	(9,319)	$	(19,368)	$	(2,840)
	OCI before reclassifications		25,635		39,113		(622)		(11,170)		(1,686)
	Amounts reclassified from AOCI		-		-		-		-		-
Net current period OCI			25,635		39,113		(622)		(11,170)		(1,686)
Balance as of June 30, 2016		$	72,556	$	117,561	$	(9,941)	$	(30,538)	$	(4,526)
For the Six Months Ended June 30, 2015
Balance as of December 31, 2014		$	93,267	$	133,774	$	(8,992)	$	(25,803)	$	(5,712)
	OCI before reclassifications		(42,654)		(46,332)		(1,034)		2,073		2,639
	Amounts reclassified from AOCI		-		-		-		-		-
Net current period OCI			(42,654)		(46,332)		(1,034)		2,073		2,639
Balance as of June 30, 2015		$	50,613	$	87,442	$	(10,026)	$	(23,730)	$	(3,073)

13.    Variable Interest Entities

At June 30, 2016 and December 31, 2015, we have several unconsolidated VIEs.  We do not consolidate these entities because we are not the primary beneficiary and the nature of our involvement in the activities of these entities does not give us power over decisions that significantly affect these entities’ economic performance.  We account for our investment in these entities under the equity method (see Note 7 – Investments in Partially Owned Entities).  As of June 30, 2016 and December 31, 2015, the net carrying amounts of our investment in these entities were $394,866,000 and $379,939,000, respectively, and our maximum exposure to loss in these entities, is limited to our investments.

We adopted ASU 2015-02 on January 1, 2016 which resulted in the identification of several VIEs at June 30, 2016.  Prior to the adoption of ASU 2015-02, these entities were consolidated under the voting interest model.  Our most significant consolidated VIEs are our real estate fund investments and certain properties that have non-controlling interests.  These entities are VIEs because the non-controlling interests do not have substantive kick-out or participating rights.  We consolidate these entities because we control all significant business activities.  As of June 30, 2016, the total assets and liabilities of these consolidated VIEs are $3,951,152,000 and $2,472,407,000 respectively. 

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14.    Fair Value Measurements

ASC 820 defines fair value and establishes a framework for measuring fair value.  The objective of fair value is to determine the price that would be received upon the sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (the exit price).ASC 820 establishes a fair value hierarchy that prioritizes observable and unobservable inputs used to measure fair value into three levels: Level 1 – quoted prices (unadjusted) in active markets that are accessible at the measurement date for assets or liabilities; Level 2 – observable prices that are based on inputs not quoted in active markets, but corroborated by market data; and Level 3 – unobservable inputs that are used when little or no market data is available. The fair value hierarchy gives the highest priority to Level 1 inputs and the lowest priority to Level 3 inputs. In determining fair value, we utilize valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible, as well as consider counterparty credit risk in our assessment of fair value.  Considerable judgment is necessary to interpret Level 2 and 3 inputs in determining the fair value of our financial and non-financial assets and liabilities.  Accordingly, our fair value estimates, which are made at the end of each reporting period, may be different than the amounts that may ultimately be realized upon sale or disposition of these assets.   

Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis

Financial assets and liabilities that are measured at fair value on our consolidated balance sheets consist of (i) marketable securities, (ii) real estate fund investments, (iii) the assets in our deferred compensation plan (for which there is a corresponding liability on our consolidated balance sheet), (iv) mandatorily redeemable instruments (Series G-1 through G-4 convertible preferred units and Series D-13 cumulative redeemable preferred units), and (v) interest rate swaps.  The tables below aggregate the fair values of these financial assets and liabilities by their levels in the fair value hierarchy as of June 30, 2016 and December 31, 2015, respectively.

(Amounts in thousands)		As of June 30, 2016
		Total		Level 1		Level 2		Level 3
Marketable securities		$	194,489	$	194,489	$	-	$	-
Real estate fund investments			524,150		-		-		524,150
Deferred compensation plan assets (included in other assets)			119,292		59,152		-		60,140
	Total assets	$	837,931	$	253,641	$	-	$	584,290
Mandatorily redeemable instruments (included in other liabilities)		$	50,561	$	50,561	$	-	$	-
Interest rate swaps (included in other liabilities)			31,900		-		31,900		-
	Total liabilities	$	82,461	$	50,561	$	31,900	$	-
(Amounts in thousands)		As of December 31, 2015
		Total		Level 1		Level 2		Level 3
Marketable securities		$	150,997	$	150,997	$	-	$	-
Real estate fund investments			574,761		-		-		574,761
Deferred compensation plan assets (included in other assets)			117,475		58,289		-		59,186
	Total assets	$	843,233	$	209,286	$	-	$	633,947
Mandatorily redeemable instruments (included in other liabilities)		$	50,561	$	50,561	$	-	$	-
Interest rate swaps (included in other liabilities)			19,600		-		19,600		-
	Total liabilities	$	70,161	$	50,561	$	19,600	$	-

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14.  Fair Value Measurements – continued

Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis - continued

Real Estate Fund Investments

At June 30, 2016, we had six real estate fund investments with an aggregate fair value of $524,150,000, or $215,215,000 in excess of cost.  These investments are classified as Level 3.  We use a discounted cash flow valuation technique to estimate the fair value of each of these investments, which is updated quarterly by personnel responsible for the management of each investment and reviewed by senior management at each reporting period.  The discounted cash flow valuation technique requires us to estimate cash flows for each investment over the anticipated holding period, which currently ranges from 1.0 to 4.5 years.  Cash flows are derived from property rental revenue (base rents plus reimbursements) less operating expenses, real estate taxes and capital and other costs, plus projected sales proceeds in the year of exit.  Property rental revenue is based on leases currently in place and our estimates for future leasing activity, which are based on current market rents for similar space plus a projected growth factor.  Similarly, estimated operating expenses and real estate taxes are based on amounts incurred in the current period plus a projected growth factor for future periods.  Anticipated sales proceeds at the end of an investment’s expected holding period are determined based on the net cash flow of the investment in the year of exit, divided by a terminal capitalization rate, less estimated selling costs. 

The fair value of each property is calculated by discounting the future cash flows (including the projected sales proceeds), using an appropriate discount rate and then reduced by the property’s outstanding debt, if any, to determine the fair value of the equity in each investment. Significant unobservable quantitative inputs used in determining the fair value of each investment include capitalization rates and discount rates.  These rates are based on the location, type and nature of each property, and current and anticipated market conditions, industry publications and from the experience of our Acquisitions and Capital Markets departments.  Significant unobservable quantitative inputs in the table below were utilized in determining the fair value of these real estate fund investments at June 30, 2016 and December 31, 2015.

				Weighted Average
		Range		(based on fair value of investments)
Unobservable Quantitative Input		June 30, 2016	December 31, 2015	June 30, 2016	December 31, 2015
	Discount rates	12.0% to 14.9%	12.0% to 14.9%	13.7%	13.6%
	Terminal capitalization rates	4.8% to 6.1%	4.8% to 6.1%	5.5%	5.5%

The above inputs are subject to change based on changes in economic and market conditions and/or changes in use or timing of exit.  Changes in discount rates and terminal capitalization rates result in increases or decreases in the fair values of these investments.  The discount rates encompass, among other things, uncertainties in the valuation models with respect to terminal capitalization rates and the amount and timing of cash flows.  Therefore, a change in the fair value of these investments resulting from a change in the terminal capitalization rate, may be partially offset by a change in the discount rate.  It is not possible for us to predict the effect of future economic or market conditions on our estimated fair values. 

The table below summarizes the changes in the fair value of real estate fund investments that are classified as Level 3, for the three and six months ended June 30, 2016 and 2015.

(Amounts in thousands)	For the Three Months Ended June 30,				For the Six Months Ended June 30,
		2016		2015	2016		2015
Beginning balance	$	566,696	$	554,426	$	574,761	$	513,973
Purchases		-		-		-		95,000
Dispositions / distributions		(57,212)		(11,235)		(71,888)		(83,421)
Net unrealized gains		14,666		23,332		20,855		39,545
Net realized gains		-		886		422		2,312
Other, net		-		(1,433)		-		(1,433)
Ending balance	$	524,150	$	565,976	$	524,150	$	565,976

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14.    Fair Value Measurements – continued

Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis - continued

Deferred Compensation Plan Assets

Deferred compensation plan assets that are classified as Level 3 consist of investments in limited partnerships and investment funds, which are managed by third parties.  We receive quarterly financial reports from a third-party administrator, which are compiled from the quarterly reports provided to them from each limited partnership and investment fund.  The quarterly reports provide net asset values on a fair value basis which are audited by independent public accounting firms on an annual basis.  The third-party administrator does not adjust these values in determining our share of the net assets and we do not adjust these values when reported in our consolidated financial statements.

The table below summarizes the changes in the fair value of deferred compensation plan assets that are classified as Level 3, for the three and six months ended June 30, 2016 and 2015. 

(Amounts in thousands)	For the Three Months Ended June 30,				For the Six Months Ended June 30,
		2016		2015	2016		2015
Beginning balance	$	57,184	$	64,836	$	59,186	$	63,315
Purchases		1,106		5,607		2,272		6,231
Sales		(779)		(4,655)		(2,151)		(5,093)
Realized and unrealized gain		2,219		1,387		312		2,722
Other, net		410		493		521		493
Ending balance	$	60,140	$	67,668	$	60,140	$	67,668

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14.    Fair Value Measurements – continued

Financial Assets and Liabilities not Measured at Fair Value

Financial assets and liabilities that are not measured at fair value on our consolidated balance sheets include cash equivalents (primarily money market funds, which invest in obligations of the United States government), and our secured and unsecured debt.  Estimates of the fair value of these instruments are determined by the standard practice of modeling the contractual cash flows required under the instrument and discounting them back to their present value at the appropriate current risk adjusted interest rate, which is provided by a third-party specialist.  For floating rate debt, we use forward rates derived from observable market yield curves to project the expected cash flows we would be required to make under the instrument.  The fair value of cash equivalents and borrowings under our unsecured revolving credit facilities and unsecured term loan are classified as Level 1.  The fair value of our secured and unsecured debt is classified as Level 2.  The table below summarizes the carrying amounts and fair value of these financial instruments as of June 30, 2016 and December 31, 2015.

(Amounts in thousands)		As of June 30, 2016					As of December 31, 2015
		Carrying			Fair		Carrying			Fair
		Amount			Value		Amount			Value
Cash equivalents		$	1,134,521		$	1,135,000	$	1,295,980		$	1,296,000
Debt:
	Mortgages payable	$	9,853,333		$	9,277,000	$	9,614,838		$	9,306,000
	Senior unsecured notes		850,000			894,000		850,000			868,000
	Unsecured term loan		375,000			375,000		187,500			188,000
	Unsecured revolving credit facilities		115,630			116,000		550,000			550,000
	Total	$	11,193,963	(1)	$	10,662,000	$	11,202,338	(1)	$	10,912,000
(1)	Excludes $115,192 and $111,328 of deferred financing costs, net and other as of June 30, 2016 and December 31, 2015, respectively.

15.    Incentive Compensation

Vornado’s 2010 Omnibus Share Plan (the “Plan”) provides for grants of incentive and non-qualified Vornado stock options, restricted stock, restricted partnership units and Out-Performance Plan awards to certain of Vornado’s employees and officers.  We account for all equity-based compensation in accordance with ASC 718.  Equity-based compensation expense was $7,215,000 and $6,685,000for the three months ended June 30, 2016 and 2015, respectively, and $21,786,000 and $26,827,000for the six months ended June 30, 2016 and 2015, respectively.

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16.    Fee and Other Income

The following table sets forth the details of fee and other income:

(Amounts in thousands)	For the Three Months Ended June 30,				For the Six Months Ended June 30,
	2016		2015		2016		2015
BMS cleaning fees	$	18,794	$	21,741	$	36,940	$	44,374
Management and leasing fees		4,604		4,274		9,403		8,466
Lease termination fees		3,199		2,893		5,604		6,640
Other income		7,092		10,322		15,712		19,357
	$	33,689	$	39,230	$	67,659	$	78,837

Management and leasing fees include management fees from Interstate Properties, a related party, of $128,000 and $132,000 for the three months ended June 30, 2016 and 2015, and $262,000 and $271,000 for the six months ended June 30, 2016 and 2015, respectively.  The above table excludes fee income from partially owned entities, which is included in “income (loss) from partially owned entities” (see Note 7 – Investments in Partially Owned Entities).

17.     Interest and Other Investment Income, Net

The following table sets forth the details of interest and other investment income, net:

(Amounts in thousands)		For the Three Months Ended June 30,				For the Six Months Ended June 30,
		2016		2015		2016		2015
Dividends on marketable securities		$	3,230	$	3,202	$	6,445	$	6,405
Mark-to-market income (loss) of investments in
	our deferred compensation plan (1)		4,359		(609)		2,421		2,250
Interest on loans receivable			748		1,135		1,496		3,959
Other, net			1,899		1,938		3,392		3,844
		$	10,236	$	5,666	$	13,754	$	16,458
(1)	This income (loss) is entirely offset by the income (expense) resulting from the mark-to-market of the deferred compensation plan liability, which is included in "general and administrative" expense.

18.     Interest and Debt Expense

The following table sets forth the details of interest and debt expense:

(Amounts in thousands)	For the Three Months Ended June 30,				For the Six Months Ended June 30,
	2016		2015		2016		2015
Interest expense	$	104,435	$	96,297	$	204,730	$	191,625
Amortization of deferred financing costs		8,508		7,497		17,773		14,953
Capitalized interest and debt expense		(7,367)		(11,702)		(16,438)		(22,812)
	$	105,576	$	92,092	$	206,065	$	183,766

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19.          Income Per Class A Unit

The following table provides a reconciliation of both net income and the number of Class A units used in the computation of (i) basic income per Class A unit - which includes the weighted average number of Class A units outstanding without regard to dilutive potential Class A units, and (ii) diluted income per Class A unit - which includes the weighted average Class A units and dilutive unit equivalents. Dilutive unit equivalents may include our Series A convertible preferred units, Vornado stock options and restricted unit awards.

(Amounts in thousands, except per unit amounts)			For the Three Months Ended				For the Six Months Ended
			June 30,				June 30,
			2016		2015		2016		2015
Numerator:
	Income from continuing operations, net of income
		attributable to noncontrolling interests	$	252,882	$	196,578	$	150,880	$	289,763
	Income (loss) from discontinued operations			2,475		(364)		3,191		15,815
	Net income attributable to Vornado Realty L.P.			255,357		196,214		154,071		305,578
	Preferred unit distributions			(20,412)		(20,414)		(40,824)		(39,910)
	Net income attributable to Class A unitholders			234,945		175,800		113,247		265,668
	Earnings allocated to unvested participating securities			(1,059)		(1,183)		(1,412)		(1,781)
	Numerator for basic income per Class A unit			233,886		174,617		111,835		263,887
	Impact of assumed conversions:
		Convertible preferred unit distributions		22		23		-		47
	Numerator for diluted income per Class A unit		$	233,908	$	174,640	$	111,835	$	263,934
Denominator:
	Denominator for basic income per Class A unit – weighted
		average units		200,369		199,038		200,220		198,857
	Effect of dilutive securities(1):
		Vornado stock options and restricted unit awards		1,564		1,750		1,601		1,930
		Convertible preferred units		42		45		-		46
	Denominator for diluted income per Class A unit – weighted
		average units and assumed conversions		201,975		200,833		201,821		200,833
INCOME PER CLASS A UNIT – BASIC:
	Income from continuing operations, net		$	1.16	$	0.88	$	0.54	$	1.25
	Income from discontinued operations, net			0.01		-		0.02		0.08
	Net income per Class A unit		$	1.17	$	0.88	$	0.56	$	1.33
INCOME PER CLASS A UNIT – DILUTED:
	Income from continuing operations, net		$	1.15	$	0.87	$	0.54	$	1.23
	Income from discontinued operations, net			0.01		-		0.01		0.08
	Net income per Class A unit		$	1.16	$	0.87	$	0.55	$	1.31
(1)	The effect of dilutive securities for the three months ended June 30, 2016 and 2015 excludes an aggregate of 187 and 148 weighted average Class A unit equivalents, respectively, and 231 and 151 weighted average Class A unit equivalents for the six months ended June 30, 2016 and 2015, respectively, as their effect was anti-dilutive.

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20.          Commitments and Contingencies

Insurance 

We maintain general liability insurance with limits of $300,000,000 per occurrence and per property, and all risk property and rental value insurance with limits of $2.0 billion per occurrence, with sub-limits for certain perils such as flood and earthquake. Our California properties have earthquake insurance with coverage of $180,000,000 per occurrence and in the annual aggregate, subject to a deductible in the amount of 5% of the value of the affected property. We maintain coverage for terrorism acts with limits of $4.0 billion per occurrence and in the aggregate, and $2.0 billion per occurrence and in the aggregate for terrorism involving nuclear, biological, chemical and radiological (“NBCR”) terrorism events, as defined by Terrorism Risk Insurance Program Reauthorization Act of 2015, which expires in December 2020.

Penn Plaza Insurance Company, LLC (“PPIC”), our wholly owned consolidated subsidiary, acts as a re-insurer with respect to a portion of all risk property and rental value insurance and a portion of our earthquake insurance coverage, and as a direct insurer for coverage for acts of terrorism including NBCR acts. Coverage for acts of terrorism (excluding NBCR acts) is fully reinsured by third party insurance companies and the Federal government with no exposure to PPIC. For NBCR acts, PPIC is responsible for a deductible of $2,400,000 per occurrence and 16% of the balance of a covered loss and the Federal government is responsible for the remaining 84% of a covered loss. We are ultimately responsible for any loss incurred by PPIC.

We continue to monitor the state of the insurance market and the scope and costs of coverage for acts of terrorism.  However, we cannot anticipate what coverage will be available on commercially reasonable terms in the future.

Our debt instruments, consisting of mortgage loans secured by our properties which are non-recourse to us, senior unsecured notes and revolving credit agreements contain customary covenants requiring us to maintain insurance. Although we believe that we have adequate insurance coverage for purposes of these agreements, we may not be able to obtain an equivalent amount of coverage at reasonable costs in the future. Further, if lenders insist on greater coverage than we are able to obtain, it could adversely affect our ability to finance our properties and expand our portfolio.

Other Commitments and Contingencies

We are from time to time involved in legal actions arising in the ordinary course of business. In our opinion, after consultation with legal counsel, the outcome of such matters is not expected to have a material adverse effect on our financial position, results of operations or cash flows.

Each of our properties has been subjected to varying degrees of environmental assessment at various times. The environmental assessments did not reveal any material environmental contamination. However, there can be no assurance that the identification of new areas of contamination, changes in the extent or known scope of contamination, the discovery of additional sites, or changes in cleanup requirements would not result in significant costs to us.

Generally, our mortgage loans are non-recourse to us.  However, in certain cases we have provided guarantees or master leased tenant space.  These guarantees and master leases terminate either upon the satisfaction of specified circumstances or repayment of the underlying loans.  As of June 30, 2016, the aggregate dollar amount of these guarantees and master leases is approximately $857,000,000.

At June 30, 2016, $38,576,000 of letters of credit were outstanding under one of our unsecured revolving credit facilities.  Our unsecured revolving credit facilities contain financial covenants that require us to maintain minimum interest coverage and maximum debt to market capitalization ratios, and provide for higher interest rates in the event of a decline in our ratings below Baa3/BBB. Our unsecured revolving credit facilities also contain customary conditions precedent to borrowing, including representations and warranties, and also contain customary events of default that could give rise to accelerated repayment, including such items as failure to pay interest or principal.

As of June 30, 2016, we expect to fund additional capital to certain of our partially owned entities aggregating approximately $70,000,000.

As of June 30, 2016, we have construction commitments aggregating approximately $721,173,000. 

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(UNAUDITED)

21.    Segment Information

Below is a summary of net income and a reconciliation of net income to EBITDA⁽¹⁾ by segment for the three and six months ended June 30, 2016 and 2015.  

(Amounts in thousands)		For the Three Months Ended June 30, 2016
			Total		New York			Washington, DC			Other
Total revenues			$	621,708	$	425,770		$	127,468		$	68,470
Total expenses				434,894		268,135			89,106			77,653
Operating income (loss)				186,814		157,635			38,362			(9,183)
Income (loss) from partially owned entities				642		(1,001)			(2,958)			4,601
Income from real estate fund investments				16,389		-			-			16,389
Interest and other investment income, net				10,236		1,214			34			8,988
Interest and debt expense				(105,576)		(56,395)			(19,817)			(29,364)
Net gain on disposition of wholly owned and partially
	owned assets			159,511		159,511			-			-
Income (loss) before income taxes				268,016		260,964			15,621			(8,569)
Income tax expense				(2,109)		(816)			(318)			(975)
Income (loss) from continuing operations				265,907		260,148			15,303			(9,544)
Income from discontinued operations				2,475		-			-			2,475
Net income (loss)				268,382		260,148			15,303			(7,069)
Less net income attributable to noncontrolling interests in
	consolidated subsidiaries			(13,025)		(3,397)			-			(9,628)
Net income (loss) attributable to Vornado Realty L.P.				255,357		256,751			15,303			(16,697)
Interest and debt expense(2)				127,799		71,171			22,641			33,987
Depreciation and amortization(2)				173,352		111,314			39,305			22,733
Income tax expense(2)				4,704		889			2,205			1,610
EBITDA(1)			$	561,212	$	440,125	(3)	$	79,454	(4)	$	41,633	(5)

(Amounts in thousands)		For the Three Months Ended June 30, 2015
			Total		New York			Washington, DC			Other
Total revenues			$	616,288	$	414,262		$	134,856		$	67,170
Total expenses				422,897		250,298			98,661			73,938
Operating income (loss)				193,391		163,964			36,195			(6,768)
(Loss) income from partially owned entities				(5,641)		3,176			(1,805)			(7,012)
Income from real estate fund investments				26,368		-			-			26,368
Interest and other investment income, net				5,666		1,892			13			3,761
Interest and debt expense				(92,092)		(47,173)			(17,483)			(27,436)
Income (loss) before income taxes				127,692		121,859			16,920			(11,087)
Income tax benefit (expense)				88,072		(1,095)			(466)			89,633
Income from continuing operations				215,764		120,764			16,454			78,546
Loss from discontinued operations				(364)		-			-			(364)
Net income				215,400		120,764			16,454			78,182
Less net income attributable to noncontrolling interests in
	consolidated subsidiaries			(19,186)		(2,552)			-			(16,634)
Net income attributable to Vornado Realty L.P.				196,214		118,212			16,454			61,548
Interest and debt expense(2)				115,073		61,057			20,891			33,125
Depreciation and amortization(2)				163,245		95,567			47,803			19,875
Income tax (benefit) expense (2)				(87,653)		1,152			486			(89,291)
EBITDA(1)			$	386,879	$	275,988	(3)	$	85,634	(4)	$	25,257	(5)

See notes on pages 30 and 31.

28

 

VORNADO REALTY L.P.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED

(UNAUDITED)

21.    Segment Information – continued

(Amounts in thousands)		For the Six Months Ended June 30, 2016
			Total		New York			Washington, DC			Other
Total revenues			$	1,234,745	$	836,595		$	255,480		$	142,670
Total expenses				1,048,211		537,730			345,671			164,810
Operating income (loss)				186,534		298,865			(90,191)			(22,140)
(Loss) income from partially owned entities				(3,598)		(4,564)			(5,001)			5,967
Income from real estate fund investments				27,673		-			-			27,673
Interest and other investment income, net				13,754		2,329			92			11,333
Interest and debt expense				(206,065)		(110,981)			(35,752)			(59,332)
Net gain on disposition of wholly owned and partially
	owned assets			160,225		159,511			-			714
Income (loss) before income taxes				178,523		345,160			(130,852)			(35,785)
Income tax expense				(4,940)		(1,775)			(582)			(2,583)
Income (loss) from continuing operations				173,583		343,385			(131,434)			(38,368)
Income from discontinued operations				3,191		-			-			3,191
Net income (loss)				176,774		343,385			(131,434)			(35,177)
Less net income attributable to noncontrolling interests in
	consolidated subsidiaries			(22,703)		(6,826)			-			(15,877)
Net income (loss) attributable to Vornado Realty L.P.				154,071		336,559			(131,434)			(51,054)
Interest and debt expense(2)				253,919		142,369			42,047			69,503
Depreciation and amortization(2)				348,163		219,717			81,986			46,460
Income tax expense (2)				7,965		1,979			2,470			3,516
EBITDA(1)			$	764,118	$	700,624	(3)	$	(4,931)	(4)	$	68,425	(5)

(Amounts in thousands)		For the Six Months Ended June 30, 2015
		Total		New York			Washington, DC			Other
Total revenues		$	1,223,090	$	813,775		$	268,824		$	140,491
Total expenses			861,985		503,058			191,658			167,269
Operating income (loss)			361,105		310,717			77,166			(26,778)
Loss from partially owned entities			(8,384)		(2,487)			(1,674)			(4,223)
Income from real estate fund investments			50,457		-			-			50,457
Interest and other investment income, net			16,458		3,754			26			12,678
Interest and debt expense			(183,766)		(92,524)			(35,643)			(55,599)
Net gain on disposition of wholly owned and partially
	owned assets		1,860		-			-			1,860
Income (loss) before income taxes			237,730		219,460			39,875			(21,605)
Income tax benefit (expense)			87,101		(2,038)			208			88,931
Income from continuing operations			324,831		217,422			40,083			67,326
Income from discontinued operations			15,815		-			-			15,815
Net income			340,646		217,422			40,083			83,141
Less net income attributable to noncontrolling interests in
	consolidated subsidiaries		(35,068)		(4,058)			-			(31,010)
Net income attributable to Vornado Realty L.P.			305,578		213,364			40,083			52,131
Interest and debt expense(2)			229,748		119,724			42,403			67,621
Depreciation and amortization(2)			319,695		189,691			88,555			41,449
Income tax (benefit) expense(2)			(88,392)		2,154			(2,150)			(88,396)
EBITDA(1)		$	766,629	$	524,933	(3)	$	168,891	(4)	$	72,805	(5)
See notes on the following pages.

29

 

VORNADO REALTY L.P.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED

(UNAUDITED)

21.    Segment Information – continued

Notes to preceding tabular information:
(1)	EBITDA represents "Earnings Before Interest, Taxes, Depreciation and Amortization."  We consider EBITDA a non-GAAP financial measure for making decisions and assessing the unlevered performance of our segments as it relates to the total return on assets as opposed to the levered return on equity. As properties are bought and sold based on a multiple of EBITDA, we utilize this measure to make investment decisions as well as to compare the performance of our assets to that of our peers. EBITDA should not be considered a substitute for net income. EBITDA may not be comparable to similarly titled measures employed by other companies.
(2)	Interest and debt expense, depreciation and amortization and income tax expense (benefit) in the reconciliation of net income (loss) to EBITDA includes our share of these items from partially owned entities.
(3)	The elements of "New York" EBITDA are summarized below.
	(Amounts in thousands)		For the Three Months Ended				For the Six Months Ended
			June 30,				June 30,
			2016		2015		2016		2015
	Office(a)		$	163,060	$	165,031	$	315,789	$	319,340
	Retail			95,615		86,151		188,938		167,456
	Residential			6,337		5,709		12,687		10,759
	Alexander's			11,805		10,241		23,374		20,648
	Hotel Pennsylvania			3,797		8,856		325		6,730
				280,614		275,988		541,113		524,933
	Gain on sale of 47% ownership interest
		in 7 West 34th Street		159,511		-		159,511		-
		Total New York	$	440,125	$	275,988	$	700,624	$	524,933
	(a)	The three and six months ended June 30, 2015 include $3,304 and $6,844, respectively, of EBITDA from 20 Broad Street which was sold in December 2015. Excluding these items, EBITDA was $161,727 and $312,496, respectively.
(4)	The elements of "Washington, DC" EBITDA are summarized below.
	(Amounts in thousands)		For the Three Months Ended				For the Six Months Ended
			June 30,				June 30,
			2016		2015		2016		2015
	Office, excluding the Skyline properties (a)		$	63,757	$	68,509	$	124,573	$	135,878
	Skyline properties			4,863		6,984		9,955		13,039
	Skyline properties impairment loss			-		-		(160,700)		-
		Total Office		68,620		75,493		(26,172)		148,917
	Residential			10,834		10,141		21,241		19,974
		Total Washington, DC	$	79,454	$	85,634	$	(4,931)	$	168,891
	(a)	The three and six months ended June 30, 2015 include $2,067 and $3,990, respectively, of EBITDA from 1750 Pennsylvania Avenue which was sold in September 2015. Excluding these items, EBITDA was $66,442 and $131,888, respectively.

30

 

VORNADO REALTY L.P.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED

(UNAUDITED)

21.    Segment Information – continued

Notes to preceding tabular information - continued:
(5)	The elements of "Other" EBITDA are summarized below.
	(Amounts in thousands)		For the Three Months Ended				For the Six Months Ended
			June 30,				June 30,
			2016		2015		2016		2015
	Our share of real estate fund investments:
		Income before net realized/unrealized gains	$	1,526	$	2,671	$	3,757	$	4,285
		Net realized/unrealized gains on investments		3,890		4,916		5,451		10,464
		Carried interest		2,128		2,909		3,647		6,297
	Total			7,544		10,496		12,855		21,046
	theMART (including trade shows)			25,965		22,144		48,993		43,185
	555 California Street			12,117		12,831		23,732		25,232
	India real estate ventures			430		375		1,749		2,216
	Other investments			14,741		9,424		27,063		16,183
				60,797		55,270		114,392		107,862
	Corporate general and administrative expenses(a) (b)			(24,239)		(23,760)		(54,845)		(59,702)
	Investment income and other, net(a)			5,471		6,561		12,446		15,323
	Acquisition and transaction related costs			(2,879)		(4,061)		(7,486)		(6,042)
	UE and residual retail properties discontinued operations(c)			2,483		1,540		3,204		23,797
	Our share of impairment loss on India real estate ventures			-		(14,806)		-		(14,806)
	Our share of gains on sale of real estate of partially owned entities			-		4,513		-		4,513
	Net gain on sale of residential condominiums			-		-		714		1,860
			$	41,633	$	25,257	$	68,425	$	72,805
	(a)	The amounts in these captions (for this table only) exclude the results of the mark-to-market of our deferred compensation plan of $4,359 of income and $609 of loss for the three months ended June 30, 2016 and 2015, respectively, and $2,421 and $2,250 of income for the six months ended June 30, 2016 and 2015, respectively.
	(b)	The six months ended June 30, 2015 includes a cumulative catch up of $4,542 from the acceleration of recognition of compensation expense related to the modification of the 2012-2014 Out-Performance Plans.
	(c)	The three and six months ended June 30, 2015 include $327 and $22,972, respectively, of transaction costs related to the spin-off of our strip shopping centers and malls.

22.    Subsequent Events

On August 1, 2016, Vornado announced that it is redeeming all of its outstanding 6.875% Series J Cumulative Redeemable Preferred Shares on September 1, 2016 at a redemption price of $25.00 per share, or $246,250,000 in the aggregate, plus accrued and unpaid dividends through the date of redemption.  Accordingly, we will be redeeming all of our 6.875% Series J Cumulative Redeemable Preferred Units on the same date and at the same price.

31

 

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

Partners and the Board of Trustees of Vornado Realty Trust

Vornado Realty L.P.

New York, New York

We have reviewed the accompanying consolidated balance sheet of Vornado Realty L.P. and consolidated subsidiaries (the “Partnership”) as of June 30, 2016, and the related consolidated statements of income and comprehensive income for the three month and six month periods ended June 30, 2016 and 2015 and changes in equity and cash flows for the six month periods ended June 30, 2016 and 2015.  These interim financial statements are the responsibility of the Partnership’s management.

We conducted our reviews in accordance with the standards of the Public Company Accounting Oversight Board (United States).  A review of interim financial information consists principally of applying analytical procedures and making inquiries of persons responsible for financial and accounting matters.  It is substantially less in scope than an audit conducted in accordance with the standards of the Public Company Accounting Oversight Board (United States), the objective of which is the expression of an opinion regarding the financial statements taken as a whole.  Accordingly, we do not express such an opinion.

Based on our reviews, we are not aware of any material modifications that should be made to such consolidated interim financial statements for them to be in conformity with accounting principles generally accepted in the United States of America.

We have previously audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States), the consolidated balance sheet of Vornado Realty L.P. as of December 31, 2015, and the related consolidated statements of income, comprehensive income, changes in equity, and cash flows for the year then ended (not presented herein); and in our report dated February 22, 2016, we expressed an unqualified opinion on those consolidated financial statements and included an explanatory paragraph regarding the Partnership’s adoption of Accounting Standards Update No. 2014-08, Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity.  In our opinion, the information set forth in the accompanying consolidated balance sheet as of December 31, 2015 is fairly stated, in all material respects, in relation to the consolidated balance sheet from which it has been derived.

/s/ DELOITTE & TOUCHE LLP

Parsippany, New Jersey

August 5, 2016

32

 

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

Certain statements contained in this Quarterly Report constitute forward‑looking statements as such term is defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements are not guarantees of performance. They represent our intentions, plans, expectations and beliefs and are subject to numerous assumptions, risks and uncertainties. Our future results, financial condition and business may differ materially from those expressed in these forward-looking statements. You can find many of these statements by looking for words such as “approximates,” “believes,” “expects,” “anticipates,” “estimates,” “intends,” “plans,” “would,” “may” or other similar expressions in this Quarterly Report on Form 10‑Q.  We also note the following forward-looking statements: in the case of our development and redevelopment projects, the estimated completion date, estimated project cost and cost to complete; and estimates of future capital expenditures, and operating partnership distributions.  Many of the factors that will determine the outcome of these and our other forward-looking statements are beyond our ability to control or predict. For further discussion of factors that could materially affect the outcome of our forward-looking statements, see “Item 1A. Risk Factors” in our Annual Report on Form 10-K, as amended, for the year ended December 31, 2015.  For these statements, we claim the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. You are cautioned not to place undue reliance on our forward-looking statements, which speak only as of the date of this Quarterly Report on Form 10-Q or the date of any document incorporated by reference. All subsequent written and oral forward-looking statements attributable to us or any person acting on our behalf are expressly qualified in their entirety by the cautionary statements contained or referred to in this section. We do not undertake any obligation to release publicly any revisions to our forward-looking statements to reflect events or circumstances occurring after the date of this Quarterly Report on Form 10-Q.

Management’s Discussion and Analysis of Financial Condition and Results of Operations includes a discussion of our consolidated financial statements for the three and six months ended June 30, 2016.  The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates.  The results of operations for the three and six months ended June 30, 2016 are not necessarily indicative of the operating results for the full year.  Certain prior year balances have been reclassified in order to conform to current year presentation.

33

 

Overview

Business Objective and Operating Strategy

Our business objective is to maximize Vornado shareholder value, which we measure by the total return provided to Vornado’s shareholders. Below is a table comparing Vornado’s performance to the FTSE NAREIT Office Index (“Office REIT”) and the MSCI US REIT Index (“MSCI”) for the following periods ended June 30, 2016:

		Total Return(1)
		Vornado	Office REIT	MSCI
	Three-month	6.7%	8.5%	6.8%
	Six-month	1.5%	9.0%	13.6%
	One-year	8.3%	15.3%	24.1%
	Three-year	45.1%	36.1%	46.2%
	Five-year	40.0%	46.2%	80.5%
	Ten-year	64.6%	52.9%	103.3%
(1)	Past performance is not necessarily indicative of future performance.

We intend to achieve our business objective by continuing to pursue our investment philosophy and executing our operating strategies through:

·Maintaining a superior team of operating and investment professionals and an entrepreneurial spirit

·Investing in properties in select markets, such as New York City and Washington, DC, where we believe there is a high likelihood of capital appreciation

·Acquiring quality properties at a discount to replacement cost and where there is a significant potential for higher rents

·Investing in retail properties in select under-stored locations such as the New York City metropolitan area

·Developing and redeveloping existing properties to increase returns and maximize value

·Investing in operating companies that have a significant real estate component

We expect to finance our growth, acquisitions and investments using internally generated funds, proceeds from asset sales and by accessing the public and private capital markets.  We may also offer partnership units in exchange for property and may repurchase or otherwise reacquire these units or any other securities of ours in the future.

We compete with a large number of real estate property owners and developers, some of which may be willing to accept lower returns on their investments. Principal factors of competition are rents charged, sales prices, attractiveness of location, the quality of the property and the breadth and the quality of services provided. Our success depends upon, among other factors, trends of the global, national, regional and local economies, the financial condition and operating results of current and prospective tenants and customers, availability and cost of capital, construction and renovation costs, taxes, governmental regulations, legislation, population and employment trends.  See “Item 1A. Risk Factors” in our Annual Report on Form 10-K, as amended, for the year ended December 31, 2015, for additional information regarding these factors.

34

 

Overview – continued

Quarter Ended June 30, 2016 Financial Results Summary

Net income attributable to Class A unitholders for the quarter ended June 30, 2016 was $234,945,000, or $1.16 per diluted Class A unit, compared to net income attributable to Class A unitholders of $175,800,000, or $0.87 per diluted Class A unit, for the prior year’s quarter.  The quarters ended June 30, 2016 and 2015 include certain items that impact net income attributable to Class A unitholders, which are listed in the table below.  The aggregate of these items increased net income attributable to Class A unitholders for the quarters ended June 30, 2016 and 2015 by $157,837,000 and $81,277,000, or $0.78 and $0.40 per diluted Class A unit, respectively.

Six Months Ended June 30, 2016 Financial Results Summary

Net income attributable to Class A unitholders for the six months ended June 30, 2016 was $113,247,000, or $0.55 per diluted Class A unit, compared to $265,668,000, or $1.31 per diluted Class A unit, for the six months ended June 30, 2015. In addition, the six months ended June 30, 2016 and 2015 include certain items that impact net income attributable to Class A unitholders, which are listed in the table below.  The aggregate of these items decreased net income attributable to Class A unitholders for the six months ended June 30, 2016 by $9,464,000, or $0.05 per diluted Class A unit, and increased net income attributable to Class A unitholders for the six months ended June 30, 2015 by $106,326,000, or $0.53 per diluted Class A unit.

(Amounts in thousands)			For the Three Months Ended				For the Six Months Ended
			June 30,				June 30,
			2016		2015		2016		2015
Items that impact net income attributable to Class A unitholders:
	Net gains on sale of real estate and residential condominiums		$	159,830	$	4,513	$	160,544	$	17,240
	Net income from discontinued operations and sold properties			3,671		5,168		5,316		17,006
	Acquisition and transaction related costs			(2,904)		(4,061)		(7,511)		(6,042)
	Default interest on Skyline properties mortgage loan			(2,711)		-		(2,711)		-
	Real estate impairment losses			(49)		(14,806)		(165,102)		(15,062)
	Reversal of allowance for deferred tax assets (re: taxable
		REIT subsidiary's ability to utilize NOLs)		-		90,030		-		90,030
	Other			-		433		-		3,154
Items that impact net income attributable to Class A unitholders, net			$	157,837	$	81,277	$	(9,464)	$	106,326

Same Store EBITDA

The percentage increase (decrease) in same store Earnings Before Interest, Taxes, Depreciation and Amortization (“EBITDA”) and cash basis same store EBITDA of our operating segments are summarized below.

		New York			Washington, DC
Same store EBITDA % increase (decrease):
	Three months ended June 30, 2016 vs. June 30, 2015	6.9	%	(1)	(1.3	%)
	Six months ended June 30, 2016 vs. June 30, 2015	6.2	%	(2)	(1.4	%)
	Three months ended June 30, 2016 vs. March 31, 2016	8.1	%	(3)	2.5	%
Cash basis same store EBITDA % increase (decrease):
	Three months ended June 30, 2016 vs. June 30, 2015	5.9	%	(1)	(2.5	%)
	Six months ended June 30, 2016 vs. June 30, 2015	3.6	%	(2)	(2.0	%)
	Three months ended June 30, 2016 vs. March 31, 2016	9.2	%	(3)	0.9	%
(1)	Excluding Hotel Pennsylvania, same store EBITDA increased by 9.2% and by 8.5% on a cash basis.
(2)	Excluding Hotel Pennsylvania, same store EBITDA increased by 7.5% and by 5.1% on a cash basis.
(3)	Excluding Hotel Pennsylvania, same store EBITDA increased by 5.3% and by 5.7% on a cash basis.

Calculations of same store EBITDA, reconciliations of our net income to EBITDA and FFO and the reasons we consider these non-GAAP financial measures useful are provided in the following pages of Management’s Discussion and Analysis of the Financial Condition and Results of Operations.

35

 

Overview – continued

2016 Investments

On March 17, 2016, we entered into a joint venture, in which we own a 33.3% interest, which owns a $142,050,000 mezzanine loan.  The interest rate is LIBOR plus 8.875% (9.32% at June 30, 2016) and the debt matures in November 2016, with two three-month extension options.  At June 30, 2016, the joint venture has a $7,950,000 remaining commitment, of which our share is $2,650,000.  The joint venture’s investment is subordinate to $350,000,000 of third party debt.  We account for our investment in the joint venture under the equity method.

On May 20, 2016, we contributed $19,650,000 for a 50.0% equity interest in a joint venture that will develop a 33,000 square foot office and retail building, located on Houston Street in Manhattan.  The development cost of this project is estimated to be approximately $104,000,000.  At closing, the joint venture obtained a $65,000,000 construction loan, of which approximately $22,100,000 was outstanding at June 30, 2016.  The loan, which bears interest at LIBOR plus 3.00% (3.47% at June 30, 2016), matures in May 2019 with two one-year extension options.  Because this joint venture is a VIE and we determined we are the primary beneficiary, we consolidate the accounts of this joint venture from the date of our investment.

2016 Dispositions

On May 27, 2016, we sold a 47% ownership interest in 7 West 34th Street, a 477,000 square foot Manhattan office building leased to Amazon, and retained the remaining 53% interest.  This transaction was based on a property value of approximately $561,000,000 or $1,176 per square foot.  We received net proceeds of $127,382,000 from the sale and realized a net gain of $203,324,000, of which $159,511,000 is recognized this quarter and is included in “net gain on disposition of wholly owned and partially owned assets” in our consolidated statements of income.  The remaining net gain of $43,813,000 has been deferred until our guarantee of payment of loan principal and interest has been removed or the loan has been repaid.  We realized a net tax gain of $90,017,000.   We continue to manage and lease the property.  We share control over major decisions with our joint venture partner.  Accordingly, this property is accounted for under the equity method from the date of sale.

2016 Financings

Secured Debt

On February 8, 2016, we completed a $700,000,000 refinancing of 770 Broadway, a 1,158,000 square foot Manhattan office building.  The five-year loan is interest only at LIBOR plus 1.75%, (2.21% at June 30, 2016) which was swapped for four and a half years to a fixed rate of 2.56%.  The Company realized net proceeds of approximately $330,000,000.  The property was previously encumbered by a 5.65%, $353,000,000 mortgage which matured in March 2016.

On March 7, 2016, the joint venture, in which we have a 55% ownership interest, completed a $300,000,000 refinancing of One Park Avenue, a 947,000 square foot Manhattan office building.  The loan matures in March 2021 and is interest only at LIBOR plus 1.75% (2.21% at June 30, 2016).  The property was previously encumbered by a 4.995%, $250,000,000 mortgage which matured in March 2016.

On May 6, 2016, the joint venture, in which we have a 55% ownership interest, completed a $273,000,000 refinancing of The Warner Building, a 621,000 square foot Washington, DC office building.  The loan matures in June 2023, has a fixed rate of 3.65%, is interest only for the first two years and amortizes based on a 30-year schedule beginning in year three. The property was previously encumbered by a 6.26%, $293,000,000 mortgage which matured in May 2016.

On May 11, 2016, the joint venture, in which we have a 50% ownership interest, completed a $900,000,000 refinancing of 280 Park Avenue, a 1,250,000 square foot Manhattan office building.  The three-year loan with four one-year extensions is interest only at LIBOR plus 2.00%, (2.45% at June 30, 2016).  The property was previously encumbered by a 6.35%, $721,000,000 mortgage which was scheduled to mature in June 2016.

On May 16, 2016, we completed a $300,000,000 recourse financing of 7 West 34th Street.  The ten-year loan is interest only at a fixed rate of 3.65% and matures in June 2026.

Preferred Securities

On August 1, 2016, Vornado announced that it is redeeming all of its outstanding 6.875% Series J Cumulative Redeemable Preferred Shares on September 1, 2016 at a redemption price of $25.00 per share, or $246,250,000 in the aggregate, plus accrued and unpaid dividends through the date of redemption.  Accordingly, we will be redeeming all of our 6.875% Series J Cumulative Redeemable Preferred Units on the same date and at the same price.

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Overview – continued

Recently Issued Accounting Literature

In May 2014, the Financial Accounting Standards Board(“FASB”) issued an update ("ASU 2014-09") establishing Accounting Standards Codification (“ASC”) Topic 606, Revenue from Contracts with Customers (“ASC 606”).  ASU 2014-09 establishes a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most of the existing revenue recognition guidance.  ASU 2014-09 requires an entity to recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services and also requires certain additional disclosures.  In August 2015, the FASB issued an update (“ASU 2015-14”) to ASC 606, Deferral of the Effective Date, which defers the adoption of ASU 2014-09 to interim and annual reporting periods in fiscal years that begin after December 15, 2017.  In March 2016, the FASB issued an update (“ASU 2016-08”) to ASC 606, Principal versus Agent Considerations (Reporting Revenue Gross versus Net), which clarifies the implementation guidance on principal versus agent considerations in the new revenue recognition standard pursuant to ASU 2014-09.  In April 2016, the FASB issued an update (“ASU 2016-10”) to ASC 606, Identifying Performance Obligations and Licensing, which clarifies guidance related to identifying performance obligations and licensing implementation guidance contained in ASU 2014-09.  In May 2016, the FASB issued an update (“ASU 2016-12”) to ASC 606, Narrow-Scope Improvements and Practical Expedients, which amends certain aspects of the new revenue recognition standard pursuant to ASU 2014-09.  We are currently evaluating the impact of the adoption of these ASUs on our consolidated financial statements.

In June 2014, the FASB issued an update (“ASU 2014-12”) to ASC Topic 718, Compensation – Stock Compensation (“ASC 718”).  ASU 2014-12 requires an entity to treat performance targets that can be met after the requisite service period of a share based award has ended, as a performance condition that affects vesting.  ASU 2014-12 is effective for interim and annual reporting periods in fiscal years that began after December 15, 2015.  The adoption of this update as of January 1, 2016, did not have any impact on our consolidated financial statements.

In February 2015, the FASB issued an update (“ASU 2015-02”) Amendments to the Consolidation Analysis to ASC Topic 810, Consolidation.  ASU 2015-02 affects reporting entities that are required to evaluate whether they should consolidate certain legal entities.  Specifically, the amendments: (i) modify the evaluation of whether limited partnerships and similar legal entities are variable interest entities ("VIEs") or voting interest entities, (ii) eliminate the presumption that a general partner should consolidate a limited partnership, (iii) affect the consolidation analysis of reporting entities that are involved with VIEs, and (iv) provide a scope exception for certain entities.  ASU 2015-02 is effective for interim and annual reporting periods beginning after December 15, 2015.  The adoption of this update on January 1, 2016 resulted in the identification of additional VIEs, but did not have an impact on our consolidated financial statements other than additional disclosures.

In January 2016, the FASB issued an update (“ASU 2016-01”) Recognition and Measurement of Financial Assets and Financial Liabilities to ASC Topic 825, Financial Instruments.  ASU 2016-01 amends certain aspects of recognition, measurement, presentation and disclosure of financial instruments, including the requirement to measure certain equity investments at fair value with changes in fair value recognized in net income.  ASU 2016-01 is effective for interim and annual reporting periods in fiscal years beginning after December 15, 2017.  We are currently evaluating the impact of the adoption of ASU 2016-01 on our consolidated financial statements.

In February 2016, the FASB issued (“ASU 2016-02”) Leases, which sets out the principles for the recognition, measurement, presentation and disclosure of leases for both lessees and lessors.  ASU 2016-02 requires lessees to apply a dual approach, classifying leases as either finance or operating leases based on the principle of whether or not the lease is effectively a financed purchase.  Lessees are required to record a right-of-use asset and a lease liability for all leases with a term of greater than 12 months. Leases with a term of 12 months or less will be accounted for similar to existing guidance for operating leases.  Lessees will recognize expense based on the effective interest method for finance leases or on a straight-line basis for operating leases.  The new standard requires lessors to account for leases using an approach that is substantially equivalent to existing guidance.  ASU 2016-02 is effective for reporting periods beginning after December 15, 2018, with early adoption permitted.  We are currently evaluating the impact of the adoption of ASU 2016-02 on our consolidated financial statements.

In March 2016, the FASB issued an update (“ASU 2016-09”) Improvements to Employee Share-Based Payment Accounting to ASC 718.  ASU 2016-09 amends several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows.  ASU 2016-09 is effective for interim and annual reporting periods in fiscal years beginning after December 15, 2017.  We are currently evaluating the impact of the adoption of ASU 2016-09 on our consolidated financial statements.

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Overview – continued

Critical Accounting Policies

A summary of our critical accounting policies is included in our Annual Report on Form 10-K, as amended, for the year ended December 31, 2015 in Management’s Discussion and Analysis of Financial Condition. There have been no significant changes to our policies during 2016.

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Overview - continued

Leasing Activity:

The leasing activity and related statistics in the table below are based on leases signed during the period and are not intended to coincide with the commencement of rental revenue in accordance with accounting principles generally accepted in the United States of America (“GAAP”).  Second generation relet space represents square footage that has not been vacant for more than nine months and tenant improvements and leasing commissions are based on our share of square feet leased during the period.

(Square feet in thousands)					New York Office
							Long Island City		New York		Washington, DC
					Manhattan		(Center Building)		Retail		Office
Three Months Ended June 30, 2016
	Total square feet leased					259		285		55		352
	Our share of square feet leased:					249		285		43		338
		Initial rent(1)			$	81.67	$	40.10	$	140.26	$	42.63
		Weighted average lease term (years)				9.3		5.8		8.8		5.0
		Second generation relet space:
			Square feet			221		285		34		258
			GAAP basis:
				Straight-line rent(2)	$	78.81	$	38.68	$	164.95	$	38.78
				Prior straight-line rent	$	66.66	$	28.69	$	136.00	$	40.80
				Percentage increase (decrease)		18.2%		34.8%		21.3%		(5.0%)
			Cash basis:
				Initial rent(1)	$	80.54	$	40.10	$	158.84	$	43.55
				Prior escalated rent	$	72.49	$	30.53	$	142.41	$	46.70
				Percentage increase (decrease)		11.1%		31.4%		11.5%		(6.7%)
		Tenant improvements and leasing commissions:
				Per square foot	$	78.47	$	18.47	$	94.53	$	25.06
				Per square foot per annum	$	8.44	$	3.18	$	10.74	$	5.01
				Percentage of initial rent		10.3%		7.9%		7.7%		11.8%

See notes on following page.

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Overview - continued

Leasing Activity – continued

(Square feet in thousands)					New York Office
							Long Island City		New York		Washington, DC
					Manhattan		(Center Building)		Retail		Office
Six Months Ended June 30, 2016
	Total square feet leased					996		285		93		921
	Our share of square feet leased:					801		285		73		901
		Initial rent(1)			$	83.50	$	40.10	$	193.45	$	39.96
		Weighted average lease term (years)				11.2		5.8		10.0		3.9
		Second generation relet space:
			Square feet			745		285		55		709
			GAAP basis:
				Straight-line rent(2)	$	83.51	$	38.68	$	192.96	$	37.17
				Prior straight-line rent	$	65.11	$	28.69	$	162.57	$	38.85
				Percentage increase (decrease)		28.3%		34.8%		18.7%		(4.3%)
			Cash basis:
				Initial rent(1)	$	83.08	$	40.10	$	185.28	$	40.41
				Prior escalated rent	$	67.66	$	30.53	$	170.92	$	42.17
				Percentage increase (decrease)		22.8%		31.4%		8.4%		(4.2%)
		Tenant improvements and leasing commissions:
				Per square foot	$	81.31	$	18.47	$	105.65	$	15.60
				Per square foot per annum	$	7.26	$	3.18	$	10.57	$	4.00
				Percentage of initial rent		8.7%		7.9%		5.5%		10.0%

(1)	Represents the cash basis weighted average starting rent per square foot, which is generally indicative of market rents.  Most leases include free rent and periodic step-ups in rent which are not included in the initial cash basis rent per square foot but are included in the GAAP basis straight-line rent per square foot.
(2)	Represents the GAAP basis weighted average rent per square foot that is recognized over the term of the respective leases, and includes the effect of free rent and periodic step-ups in rent.

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Overview - continued
Square footage (in service) and Occupancy as of June 30, 2016:
(Square feet in thousands)			Square Feet (in service)
		Number of	Total	Our
		Properties	Portfolio	Share	Occupancy %
New York:
	Office	36	20,212	16,951	96.0%
	Retail	70	2,696	2,476	94.9%
	Residential - 1,711 units	11	1,559	826	93.3%
	Alexander's, including 312 residential units	7	2,437	790	99.0%
	Hotel Pennsylvania	1	1,400	1,400
			28,304	22,443	96.0%
Washington, DC:
	Office, excluding the Skyline properties	49	12,926	10,522	89.2%
	Skyline properties	8	2,648	2,648	46.9%
	Total Office	57	15,574	13,170	80.7%
	Residential - 2,889 units	9	3,023	2,881	98.2%
	Other	5	330	330	100.0%
			18,927	16,381	84.0%
Other:
	theMART	1	3,663	3,654	97.8%
	555 California Street	3	1,737	1,216	92.1%
	Other	2	779	779	100.0%
			6,179	5,649
Total square feet as of June 30, 2016			53,410	44,473

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Overview - continued
Square footage (in service) and Occupancy as of December 31, 2015:
(Square feet in thousands)			Square Feet (in service)
		Number of	Total	Our
		properties	Portfolio	Share	Occupancy %
New York:
	Office	35	21,288	17,412	96.3%
	Retail	63	2,641	2,408	96.2%
	Residential - 1,711 units	11	1,561	827	94.1%
	Alexander's, including 296 residential units	7	2,419	784	99.7%
	Hotel Pennsylvania	1	1,400	1,400
			29,309	22,831	96.4%
Washington, DC:
	Office, excluding the Skyline properties	49	13,136	10,781	90.0%
	Skyline Properties	8	2,648	2,648	50.1%
	Total Office	57	15,784	13,429	82.1%
	Residential - 2,630 units	9	2,808	2,666	96.4%
	Other	5	386	386	100.0%
			18,978	16,481	84.8%
Other:
	theMART	1	3,658	3,649	98.5%
	555 California Street	3	1,736	1,215	93.3%
	Other	2	763	763	100.0%
			6,157	5,627
Total square feet as of December 31, 2015			54,444	44,939

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Overview - continued

Washington, DC Segment

EBITDA, as adjusted for the six months ended June 30, 2016, was $9,132,000 behind the prior year's six months, and consistent with our expected results for the first half of the year.  We expect that Washington’s 2016 EBITDA, as adjusted, will be approximately $7,000,000 to $11,000,000 lower than 2015, comprised of:

(i)core business being flat to $4,000,000 higher, offset by, 

(ii)occupancy of Skyline properties declining further, decreasing EBITDA by approximately $6,500,000, and

(iii)1726 M Street and 1150 17th Street being taken out of service (to prepare for the development in the future of a new Class A office building) decreasing EBITDA by approximately $4,500,000.

Of the 2,395,000 square feet subject to the effects of the Base Realignment and Closure (“BRAC”) statute, 348,000 square feet has been taken out of service for redevelopment, and 1,462,000 square feet has been leased or is pending.  The table below summarizes the status of the BRAC space as of June 30, 2016.

		Rent Per		Square Feet
		Square Foot		Total	Crystal City	Skyline	Rosslyn
Resolved:
	Relet as of June 30, 2016	$	37.37	1,452,000	979,000	389,000	84,000
	Leases pending		39.39	10,000	-	10,000	-
	Taken out of service for redevelopment			348,000	348,000	-	-
				1,810,000	1,327,000	399,000	84,000
To be resolved:
	Vacated as of June 30, 2016		34.70	585,000	109,000	412,000	64,000
Total square feet subject to BRAC				2,395,000	1,436,000	811,000	148,000

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Net Income and EBITDA by Segment for the Three Months Ended June 30, 2016 and 2015

Below is a summary of net income and a reconciliation of net income to EBITDA⁽¹⁾ by segment for the three months ended June 30, 2016 and 2015.

(Amounts in thousands)		For the Three Months Ended June 30, 2016
			Total		New York			Washington, DC			Other
Total revenues			$	621,708	$	425,770		$	127,468		$	68,470
Total expenses				434,894		268,135			89,106			77,653
Operating income (loss)				186,814		157,635			38,362			(9,183)
Income (loss) from partially owned entities				642		(1,001)			(2,958)			4,601
Income from real estate fund investments				16,389		-			-			16,389
Interest and other investment income, net				10,236		1,214			34			8,988
Interest and debt expense				(105,576)		(56,395)			(19,817)			(29,364)
Net gain on disposition of wholly owned and partially
	owned assets			159,511		159,511			-			-
Income (loss) before income taxes				268,016		260,964			15,621			(8,569)
Income tax expense				(2,109)		(816)			(318)			(975)
Income (loss) from continuing operations				265,907		260,148			15,303			(9,544)
Income from discontinued operations				2,475		-			-			2,475
Net income (loss)				268,382		260,148			15,303			(7,069)
Less net income attributable to noncontrolling interests in
	consolidated subsidiaries			(13,025)		(3,397)			-			(9,628)
Net income (loss) attributable to Vornado Realty L.P.				255,357		256,751			15,303			(16,697)
Interest and debt expense(2)				127,799		71,171			22,641			33,987
Depreciation and amortization(2)				173,352		111,314			39,305			22,733
Income tax expense(2)				4,704		889			2,205			1,610
EBITDA(1)			$	561,212	$	440,125	(3)	$	79,454	(4)	$	41,633	(5)

(Amounts in thousands)		For the Three Months Ended June 30, 2015
			Total		New York			Washington, DC			Other
Total revenues			$	616,288	$	414,262		$	134,856		$	67,170
Total expenses				422,897		250,298			98,661			73,938
Operating income (loss)				193,391		163,964			36,195			(6,768)
(Loss) income from partially owned entities				(5,641)		3,176			(1,805)			(7,012)
Income from real estate fund investments				26,368		-			-			26,368
Interest and other investment income, net				5,666		1,892			13			3,761
Interest and debt expense				(92,092)		(47,173)			(17,483)			(27,436)
Income (loss) before income taxes				127,692		121,859			16,920			(11,087)
Income tax benefit (expense)				88,072		(1,095)			(466)			89,633
Income from continuing operations				215,764		120,764			16,454			78,546
Loss from discontinued operations				(364)		-			-			(364)
Net income				215,400		120,764			16,454			78,182
Less net income attributable to noncontrolling interests in
	consolidated subsidiaries			(19,186)		(2,552)			-			(16,634)
Net income attributable to Vornado Realty L.P.				196,214		118,212			16,454			61,548
Interest and debt expense(2)				115,073		61,057			20,891			33,125
Depreciation and amortization(2)				163,245		95,567			47,803			19,875
Income tax (benefit) expense (2)				(87,653)		1,152			486			(89,291)
EBITDA(1)			$	386,879	$	275,988	(3)	$	85,634	(4)	$	25,257	(5)

See notes on the following pages.

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Net Income and EBITDA by Segment for the Three Months Ended June 30, 2016 and 2015 - continued

Notes to preceding tabular information:
(1)	EBITDA represents "Earnings Before Interest, Taxes, Depreciation and Amortization."  We consider EBITDA a non-GAAP financial measure for making decisions and assessing the unlevered performance of our segments as it relates to the total return on assets as opposed to the levered return on equity. As properties are bought and sold based on a multiple of EBITDA, we utilize this measure to make investment decisions as well as to compare the performance of our assets to that of our peers. EBITDA should not be considered a substitute for net income. EBITDA may not be comparable to similarly titled measures employed by other companies.
(2)	Interest and debt expense, depreciation and amortization and income tax expense (benefit) in the reconciliation of net income (loss) to EBITDA includes our share of these items from partially owned entities.
(3)	The elements of "New York" EBITDA are summarized below.
	(Amounts in thousands)		For the Three Months Ended June 30,
			2016		2015
	Office(a)		$	163,060	$	165,031
	Retail			95,615		86,151
	Residential			6,337		5,709
	Alexander's			11,805		10,241
	Hotel Pennsylvania			3,797		8,856
				280,614		275,988
	Gain on sale of 47% ownership interest in 7 West 34th Street			159,511		-
		Total New York	$	440,125	$	275,988
	(a)	2015 includes $3,304 of EBITDA from 20 Broad Street which was sold in December 2015. Excluding this item, EBITDA was $161,727.
(4)	The elements of "Washington, DC" EBITDA are summarized below.
	(Amounts in thousands)		For the Three Months Ended June 30,
			2016		2015
	Office, excluding the Skyline properties (a)		$	63,757	$	68,509
	Skyline properties			4,863		6,984
		Total Office		68,620		75,493
	Residential			10,834		10,141
		Total Washington, DC	$	79,454	$	85,634
	(a)	2015 includes $2,067 of EBITDA from 1750 Pennsylvania Avenue which was sold in September 2015. Excluding this item, EBITDA was $66,442.

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Net Income and EBITDA by Segment for the Three Months Ended June 30, 2016 and 2015 - continued

Notes to preceding tabular information - continued:
(5)	The elements of "Other" EBITDA are summarized below.
	(Amounts in thousands)		For the Three Months Ended June 30,
			2016		2015
	Our share of real estate fund investments:
		Income before net realized/unrealized gains	$	1,526	$	2,671
		Net realized/unrealized gains on investments		3,890		4,916
		Carried interest		2,128		2,909
	Total			7,544		10,496
	theMART (including trade shows)			25,965		22,144
	555 California Street			12,117		12,831
	India real estate ventures			430		375
	Other investments			14,741		9,424
				60,797		55,270
	Corporate general and administrative expenses(a)			(24,239)		(23,760)
	Investment income and other, net(a)			5,471		6,561
	Acquisition and transaction related costs			(2,879)		(4,061)
	UE and residual retail properties discontinued operations(b)			2,483		1,540
	Our share of impairment loss on India real estate ventures			-		(14,806)
	Our share of gains on sale of real estate of partially owned entities			-		4,513
			$	41,633	$	25,257
	(a)	The amounts in these captions (for this table only) exclude the results of the mark-to-market of our deferred compensation plan of $4,359 of income and $609 of loss for the three months ended June 30, 2016 and 2015, respectively.
	(b)	The three months ended June 30, 2015 includes $327 of transaction costs related to the spin-off of our strip shopping centers and malls.

EBITDA by Region

Below is a summary of the percentages of EBITDA by geographic region, excluding gains on sale of real estate, non-cash impairment losses and operations of sold properties.

		For the Three Months Ended June 30,
		2016	2015
Region:
	New York City metropolitan area	70%	69%
	Washington, DC / Northern Virginia area	20%	22%
	Chicago, IL	7%	6%
	San Francisco, CA	3%	3%
		100%	100%

46

 

Results of Operations - Three Months Ended June 30, 2016 Compared to June 30, 2015

Revenues

Our revenues, which consist primarily of property rentals, tenant expense reimbursements, and fee and other income, were $621,708,000 for the three months ended June 30, 2016, compared to $616,288,000 for the prior year’s quarter, an increase of $5,420,000.  Below are the details of the increase (decrease) by segment:

(Amounts in thousands)		Total		New York		Washington, DC		Other
Increase (decrease) due to:
Property rentals:
	Acquisitions, dispositions and other	$	(8,822)	$	(5,906)	$	(2,916)	$	-
	Development and redevelopment		(19)		(60)		(843)		884
	Hotel Pennsylvania		(4,211)		(4,211)		-		-
	Trade shows		(123)		-		-		(123)
	Same store operations		25,510		23,597		166		1,747
			12,335		13,420		(3,593)		2,508
Tenant expense reimbursements:
	Acquisitions, dispositions and other		(814)		(736)		(78)		-
	Development and redevelopment		(128)		(3)		(230)		105
	Same store operations		(432)		2,263		(1,378)		(1,317)
			(1,374)		1,524		(1,686)		(1,212)
Fee and other income:
	BMS cleaning fees		(2,945)		(2,957)		-		12
	Management and leasing fees		328		148		(38)		218
	Lease termination fees		307		699		10		(402)
	Other income		(3,231)		(1,326)		(2,081)		176
			(5,541)		(3,436)		(2,109)		4
Total increase (decrease) in revenues		$	5,420	$	11,508	$	(7,388)	$	1,300

47

 

Results of Operations - Three Months Ended June 30, 2016 Compared to June 30, 2015 - continued

Expenses

Our expenses, which consist primarily of operating, depreciation and amortization, general and administrative expenses, and acquisition and transaction related costs were $434,894,000 for the three months ended June 30, 2016, compared to $422,897,000 for the prior year’s quarter, an increase of $11,997,000.  Below are the details of the increase (decrease) by segment:

(Amounts in thousands)			Total		New York		Washington, DC		Other
Increase (decrease) due to:
Operating:
	Acquisitions, dispositions and other		$	1,942	$	3,144	$	(1,202)	$	-
	Development and redevelopment			(453)		(93)		(732)		372
	Non-reimbursable expenses, including
		bad debt reserves		1,342		860		343		139
	Hotel Pennsylvania			864		864		-		-
	Trade shows			639		-		-		639
	BMS expenses			(2,705)		(2,790)		-		85
	Same store operations			819		3,188		(198)		(2,171)
				2,448		5,173		(1,789)		(936)
Depreciation and amortization:
	Acquisitions, dispositions and other			2,080		2,671		(591)		-
	Development and redevelopment			(7,847)		(54)		(7,759)		(34)
	Same store operations			10,123		10,129		(200)		194
				4,356		12,746		(8,550)		160
General and administrative:
	Mark-to-market of deferred
		compensation plan liability		4,968		-		-		4,968	(1)
	Same store operations			1,407		(82)		784		705
				6,375		(82)		784		5,673
Acquisition and transaction related costs				(1,182)		-		-		(1,182)
Total increase (decrease) in expenses			$	11,997	$	17,837	$	(9,555)	$	3,715
(1)	This increase in expense is entirely offset by a corresponding increase in income from the mark-to-market of the deferred compensation plan assets, a component of “interest and other investment income, net” on our consolidated statements of income.

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Results of Operations – Three Months Ended June 30, 2016 Compared to June 30, 2015 - continued

Income (Loss) from Partially Owned Entities

Summarized below are the components of income (loss) from partially owned entities for the three months ended June 30, 2016 and 2015.

(Amounts in thousands)		Percentage
		Ownership at	For the Three Months Ended June 30,
		June 30, 2016	2016		2015
Our Share of Net Income (Loss):
Partially owned office buildings (1)		Various	$	(12,462)	$	(3,238)
Alexander's		32.4%		8,500		7,323
India real estate ventures		4.1%-36.5%		(1,934)		(16,567)
Urban Edge Properties ("UE")		5.4%		1,280		904
Pennsylvania Real Estate Investment Trust ("PREIT")		8.0%		(527)		(364)
Other investments (2)		Various		5,785		6,301
			$	642	$	(5,641)
(1)	Includes interests in 280 Park Avenue, 650 Madison Avenue, One Park Avenue, 666 Fifth Avenue (Office), 7 West 34th Street, 330 Madison Avenue, 512 West 22nd Street and others.  In 2015, we recognized our $5,387 share of a write-off of a below market lease liability related to a tenant vacating at 650 Madison.
(2)	Includes interests in Independence Plaza, 85 Tenth Avenue, Fashion Center Mall, 50-70 West 93rd Street, Toys "R" Us, Inc. and others.

Income from Real Estate Fund Investments

Below are the components of the income from our real estate fund investments for the three months ended June 30, 2016 and 2015.

(Amounts in thousands)		For the Three Months Ended June 30,
		2016		2015
Net investment income		$	1,723	$	2,150
Net realized gains on exited investments			-		886
Net unrealized gains on held investments			14,666		23,332
Income from real estate fund investments			16,389		26,368
Less income attributable to noncontrolling interests			(8,845)		(15,872)
Income from real estate fund investments attributable to Vornado Realty L.P.(1)		$	7,544	$	10,496
(1)	Excludes management, leasing and development fees of $935 and $633 for the three months ended June 30, 2016 and 2015, respectively, which are included as a component of "fee and other income" in our consolidated statements of income.

49

 

Results of Operations – Three Months Ended June 30, 2016 Compared to June 30, 2015 - continued

Interest and Other Investment Income, net

Interest and other investment income, net was $10,236,000 for the three months ended June 30, 2016, compared to $5,666,000 in the prior year’s quarter, an increase of $4,570,000. This increase resulted primarily from an increase in the value of investments in our deferred compensation plan (offset by a corresponding decrease in the liability for plan assets in general and administrative expenses).

Interest and Debt Expense

Interest and debt expense was $105,576,000 for the three months ended June 30, 2016, compared to $92,092,000 in the prior year’s quarter, an increase of $13,484,000.  This increase was primarily due to (i) $6,937,000 of higher interest expense from the financings of the St. Regis Retail, 150 West 34^th Street, 100 West 33^rd Street, and our $750,000,000 delayed draw term loan, (ii) $4,335,000 of lower capitalized interest, and (iii) $2,711,000 of accrued default interest on our Skyline properties mortgage loan which has been transferred to the special servicer at our request.

Net Gain on Disposition of Wholly Owned and Partially Owned Assets

For the three months ended June 30, 2016, we recognized a $159,511,000 net gain from the sale of a 47% ownership interest in 7 West 34th Street. 

Income Tax (Expense) Benefit

In the three months ended June 30, 2016, income tax expense was $2,109,000, compared to an income tax benefit of $88,072,000 for the prior year’s quarter, an increase in expense of $90,181,000.  This increase in expense resulted primarily from the prior year reversal of the valuation allowances against certain of our deferred tax assets, as we have concluded that it is more-likely-than-not that we will generate sufficient taxable income from the sale of 220 Central Park South residential condominium units to realize the deferred tax assets.

Income (Loss) from Discontinued Operations

We have reclassified the revenues and expenses of the UE portfolio and other retail properties that were sold or are currently held for sale to “income (loss) from discontinued operations” and the related assets and liabilities to “assets related to discontinued operations” and “liabilities related to discontinued operations” for all the periods presented in the accompanying financial statements.  The table below sets forth the combined results of assets related to discontinued operations for the three months ended June 30, 2016 and 2015.

(Amounts in thousands)	For the Three Months Ended June 30,
	2016		2015
Total revenues	$	947	$	1,983
Total expenses		682		2,020
		265		(37)
Net gains on sale of real estate		2,210		-
UE spin-off transaction related costs		-		(327)
Income (loss) from discontinued operations	$	2,475	$	(364)

50

 

Results of Operations – Three Months Ended June 30, 2016 Compared to June 30, 2015 - continued

Net Income Attributable to Noncontrolling Interests in Consolidated Subsidiaries

Net income attributable to noncontrolling interests in consolidated subsidiaries was $13,025,000 for the three months ended June 30, 2016, compared to $19,186,000 for the prior year’s quarter, a decrease of $6,161,000.  This decrease resulted primarily from lower net income allocated to the noncontrolling interests, including noncontrolling interests of our real estate fund investments.

Preferred Unit Distributions

Preferred unit distributions were $20,412,000 for the three months ended June 30, 2016, compared to $20,414,000 for the prior year’s quarter, a decrease of $2,000. 

51

 

Results of Operations – Three Months Ended June 30, 2016 Compared to June 30, 2015 - continued

Same Store EBITDA

Same store EBITDA represents EBITDA from property level operations which are owned by us in both the current and prior year reporting periods.  Same store EBITDA excludes segment-level overhead expenses, which are expenses that we do not consider to be property-level expenses, as well as other non-operating items.  We also present same store EBITDA on a cash basis which excludes income from the straight-lining of rents, amortization of below-market leases, net of above-market leases and other non-cash adjustments. We present these non-GAAP measures to (i) facilitate meaningful comparisons of the operational performance of our properties and segments, (ii) make decisions on whether to buy, sell or refinance properties, and (iii) compare the performance of our properties and segments to those of our peers.  Same store EBITDA should not be considered as an alternative to net income or cash flow from operations and may not be comparable to similarly titled measures employed by other companies. 

Below are reconciliations of EBITDA to same store EBITDA for each of our segments for the three months ended June 30, 2016, compared to the three months ended June 30, 2015.

(Amounts in thousands)			New York			Washington, DC
EBITDA for the three months ended June 30, 2016			$	440,125		$	79,454
	Add-back:
		Non-property level overhead expenses included above		7,807			7,295
	Less EBITDA from:
		Acquisitions		(7,619)			-
		Dispositions, including net gains on sale		(159,751)			7
		Properties taken out of service for redevelopment		(6,886)			(214)
		Other non-operating income		4,484			(136)
Same store EBITDA for the three months ended June 30, 2016			$	278,160		$	86,406
EBITDA for the three months ended June 30, 2015			$	275,988		$	85,634
	Add-back:
		Non-property level overhead expenses included above		7,889			6,511
	Less EBITDA from:
		Acquisitions		(1,463)			-
		Dispositions, including net gains on sale		(3,786)			(2,067)
		Properties taken out of service for redevelopment		(5,587)			(808)
		Other non-operating income		(12,923)			(1,753)
Same store EBITDA for the three months ended June 30, 2015			$	260,118		$	87,517
Increase (decrease) in same store EBITDA -
	Three months ended June 30, 2016 vs. June 30, 2015		$	18,042	(1)	$	(1,111)	(3)
% increase (decrease) in same store EBITDA				6.9%	(2)		(1.3%)
See notes on following page

52

 

Results of Operations – Three Months Ended June 30, 2016 Compared to June 30, 2015 - continued

Notes to preceding tabular information:

New York:

(1)The $18,042,000 increase in New York same store EBITDA resulted primarily from increases in Office and Retail EBITDA of $11,798,000 and $10,560,000, respectively, partially offset by a decrease in Hotel Pennsylvania EBITDA of $5,059,000.  The Office and Retail EBITDA increases resulted primarily from higher rents, partially offset by higher operating expenses, net of reimbursements.

(2)Excluding Hotel Pennsylvania, same store EBITDA increased by 9.2%.

Washington, DC:

(3)The $1,111,000 decrease in Washington, DC same store EBITDA resulted primarily from higher net operating expenses of $1,524,000 partially offset by higher rental revenue of $610,000.

Reconciliation of Same Store EBITDA to Cash basis Same Store EBITDA

(Amounts in thousands)		New York			Washington, DC
Same store EBITDA for the three months ended June 30, 2016		$	278,160		$	86,406
Less: Adjustments for straight-line rents, amortization of acquired
	below-market leases, net, and other non-cash adjustments		(46,433)			(7,459)
Cash basis same store EBITDA for the three months ended
	June 30, 2016	$	231,727		$	78,947
Same store EBITDA for the three months ended June 30, 2015		$	260,118		$	87,517
Less: Adjustments for straight-line rents, amortization of acquired
	below-market leases, net, and other non-cash adjustments		(41,298)			(6,524)
Cash basis same store EBITDA for the three months ended
	June 30, 2015	$	218,820		$	80,993
Increase (decrease) in Cash basis same store EBITDA -
	Three months ended June 30, 2016 vs. June 30, 2015	$	12,907		$	(2,046)
% increase (decrease) in Cash basis same store EBITDA			5.9%	(1)		(2.5%)
(1)	Excluding Hotel Pennsylvania, same store EBITDA increased by 8.5% on a cash basis.

53

 

Net Income and EBITDA by Segment for the Six Months Ended June 30, 2016 and 2015

Below is a summary of net income and a reconciliation of net income to EBITDA⁽¹⁾ by segment for the six months ended June 30, 2016 and 2015.

(Amounts in thousands)		For the Six Months Ended June 30, 2016
			Total		New York			Washington, DC			Other
Total revenues			$	1,234,745	$	836,595		$	255,480		$	142,670
Total expenses				1,048,211		537,730			345,671			164,810
Operating income (loss)				186,534		298,865			(90,191)			(22,140)
(Loss) income from partially owned entities				(3,598)		(4,564)			(5,001)			5,967
Income from real estate fund investments				27,673		-			-			27,673
Interest and other investment income, net				13,754		2,329			92			11,333
Interest and debt expense				(206,065)		(110,981)			(35,752)			(59,332)
Net gain on disposition of wholly owned and partially
	owned assets			160,225		159,511			-			714
Income (loss) before income taxes				178,523		345,160			(130,852)			(35,785)
Income tax expense				(4,940)		(1,775)			(582)			(2,583)
Income (loss) from continuing operations				173,583		343,385			(131,434)			(38,368)
Income from discontinued operations				3,191		-			-			3,191
Net income (loss)				176,774		343,385			(131,434)			(35,177)
Less net income attributable to noncontrolling interests in
	consolidated subsidiaries			(22,703)		(6,826)			-			(15,877)
Net income (loss) attributable to Vornado Realty L.P.				154,071		336,559			(131,434)			(51,054)
Interest and debt expense(2)				253,919		142,369			42,047			69,503
Depreciation and amortization(2)				348,163		219,717			81,986			46,460
Income tax expense (2)				7,965		1,979			2,470			3,516
EBITDA(1)			$	764,118	$	700,624	(3)	$	(4,931)	(4)	$	68,425	(5)

(Amounts in thousands)		For the Six Months Ended June 30, 2015
		Total		New York			Washington, DC			Other
Total revenues		$	1,223,090	$	813,775		$	268,824		$	140,491
Total expenses			861,985		503,058			191,658			167,269
Operating income (loss)			361,105		310,717			77,166			(26,778)
Loss from partially owned entities			(8,384)		(2,487)			(1,674)			(4,223)
Income from real estate fund investments			50,457		-			-			50,457
Interest and other investment income, net			16,458		3,754			26			12,678
Interest and debt expense			(183,766)		(92,524)			(35,643)			(55,599)
Net gain on disposition of wholly owned and partially
	owned assets		1,860		-			-			1,860
Income (loss) before income taxes			237,730		219,460			39,875			(21,605)
Income tax benefit (expense)			87,101		(2,038)			208			88,931
Income from continuing operations			324,831		217,422			40,083			67,326
Income from discontinued operations			15,815		-			-			15,815
Net income			340,646		217,422			40,083			83,141
Less net income attributable to noncontrolling interests in
	consolidated subsidiaries		(35,068)		(4,058)			-			(31,010)
Net income attributable to Vornado Realty L.P.			305,578		213,364			40,083			52,131
Interest and debt expense(2)			229,748		119,724			42,403			67,621
Depreciation and amortization(2)			319,695		189,691			88,555			41,449
Income tax (benefit) expense(2)			(88,392)		2,154			(2,150)			(88,396)
EBITDA(1)		$	766,629	$	524,933	(3)	$	168,891	(4)	$	72,805	(5)
See notes on the following pages.

54

 

Net Income and EBITDA by Segment for the Six Months Ended June 30, 2016 and 2015 - continued

Notes to preceding tabular information:
(1)	EBITDA represents "Earnings Before Interest, Taxes, Depreciation and Amortization."  We consider EBITDA a non-GAAP financial measure for making decisions and assessing the unlevered performance of our segments as it relates to the total return on assets as opposed to the levered return on equity. As properties are bought and sold based on a multiple of EBITDA, we utilize this measure to make investment decisions as well as to compare the performance of our assets to that of our peers. EBITDA should not be considered a substitute for net income. EBITDA may not be comparable to similarly titled measures employed by other companies.
(2)	Interest and debt expense, depreciation and amortization and income tax expense (benefit) in the reconciliation of net income (loss) to EBITDA includes our share of these items from partially owned entities.
(3)	The elements of "New York" EBITDA are summarized below.
	(Amounts in thousands)		For the Six Months Ended June 30,
			2016		2015
	Office(a)		$	315,789	$	319,340
	Retail			188,938		167,456
	Residential			12,687		10,759
	Alexander's			23,374		20,648
	Hotel Pennsylvania			325		6,730
				541,113		524,933
	Gain on sale of 47% ownership interest in 7 West 34th Street			159,511		-
		Total New York	$	700,624	$	524,933
	(a)	2015 includes $6,844 of EBITDA from 20 Broad Street which was sold in December 2015. Excluding this item, EBITDA was $312,496.
(4)	The elements of "Washington, DC" EBITDA are summarized below.
	(Amounts in thousands)		For the Six Months Ended June 30,
			2016		2015
	Office, excluding the Skyline properties (a)		$	124,573	$	135,878
	Skyline properties			9,955		13,039
	Skyline properties impairment loss			(160,700)		-
		Total Office		(26,172)		148,917
	Residential			21,241		19,974
		Total Washington, DC	$	(4,931)	$	168,891
	(a)	2015 includes $3,990 of EBITDA from 1750 Pennsylvania Avenue which was sold in September 2015. Excluding this item, EBITDA was $131,888.

55

 

Net Income and EBITDA by Segment for the Six Months Ended June 30, 2016 and 2015 - continued

Notes to preceding tabular information - continued:
(5)	The elements of "Other" EBITDA are summarized below.
	(Amounts in thousands)		For the Six Months Ended June 30,
			2016		2015
	Our share of real estate fund investments:
		Income before net realized/unrealized gains	$	3,757	$	4,285
		Net realized/unrealized gains on investments		5,451		10,464
		Carried interest		3,647		6,297
	Total			12,855		21,046
	theMART (including trade shows)			48,993		43,185
	555 California Street			23,732		25,232
	India real estate ventures			1,749		2,216
	Other investments			27,063		16,183
				114,392		107,862
	Corporate general and administrative expenses(a) (b)			(54,845)		(59,702)
	Investment income and other, net(a)			12,446		15,323
	Acquisition and transaction related costs			(7,486)		(6,042)
	UE and residual retail properties discontinued operations(c)			3,204		23,797
	Net gain on sale of residential condominiums			714		1,860
	Our share of impairment loss on India real estate ventures			-		(14,806)
	Our share of gains on sale of real estate of partially owned entities			-		4,513
			$	68,425	$	72,805
	(a)	The amounts in these captions (for this table only) excludes income from the mark-to-market of our deferred compensation plan of $2,421 and $2,250 of income for the six months ended June 30, 2016 and 2015, respectively.
	(b)	The six months ended June 30, 2015 includes a cumulative catch up of $4,542 from the acceleration of recognition of compensation expense related to the modification of the 2012-2014 Out-Performance Plans.
	(c)	The six months ended June 30, 2015 includes $22,972 of transaction costs related to the spin-off of our strip shopping centers and malls.

EBITDA by Region

Below is a summary of the percentages of EBITDA by geographic region, excluding gains on sale of real estate, non-cash impairment losses and operations of sold properties.

		For the Six Months Ended June 30,
		2016	2015
Region:
	New York City metropolitan area	70%	69%
	Washington, DC / Northern Virginia area	21%	22%
	Chicago, IL	6%	6%
	San Francisco, CA	3%	3%
		100%	100%

56

 

Results of Operations – Six Months Ended June 30, 2016 Compared to June 30, 2015

Revenues

Our revenues, which consist primarily of property rentals, tenant expense reimbursements, and fee and other income, were $1,234,745,000 for the six months ended June 30, 2016, compared to $1,223,090,000 for the prior year’s six months, an increase of $11,655,000.  Below are the details of the increase (decrease) by segment:

(Amounts in thousands)		Total		New York			Washington, DC		Other
Increase (decrease) due to:
Property rentals:
	Acquisitions, dispositions and other	$	(8,067)	$	(2,569)		$	(5,498)	$	-
	Development and redevelopment		(620)		(150)			(1,981)		1,511
	Hotel Pennsylvania		(6,694)		(6,694)			-		-
	Trade shows		(776)		-			-		(776)
	Same store operations		47,710		44,762			(393)		3,341
			31,553		35,349			(7,872)		4,076
Tenant expense reimbursements:
	Acquisitions, dispositions and other		(979)		(833)			(146)		-
	Development and redevelopment		385		2			(298)		681
	Same store operations		(8,126)		(2,149)			(3,070)		(2,907)
			(8,720)		(2,980)			(3,514)		(2,226)
Fee and other income:
	BMS cleaning fees		(7,433)		(7,602)	(1)		-		169
	Management and leasing fees		936		258			80		598
	Lease termination fees		(1,035)		(633)			46		(448)
	Other income		(3,646)		(1,572)			(2,084)		10
			(11,178)		(9,549)			(1,958)		329
Total increase (decrease) in revenues		$	11,655	$	22,820		$	(13,344)	$	2,179
(1)	Primarily from the termination of a third party cleaning contract in 2015.

57

 

Results of Operations – Six Months Ended June 30, 2016 Compared to June 30, 2015 - continued

Expenses

Our expenses, which consist primarily of operating, depreciation and amortization, general and administrative expenses, and impairment loss and acquisition and transaction related costs were $1,048,211,000 for the six months ended June 30, 2016, compared to $861,985,000 for the prior year’s six months, an increase of $186,226,000.  Below are the details of the increase (decrease) by segment:

(Amounts in thousands)			Total		New York			Washington, DC			Other
Increase (decrease) due to:
Operating:
	Acquisitions, dispositions and other		$	5,952	$	8,321		$	(2,369)		$	-
	Development and redevelopment			(246)		(124)			(721)			599
	Non-reimbursable expenses, including bad debt
		reserves		1,971		904			1,228			(161)
	Hotel Pennsylvania			(298)		(298)			-			-
	Trade shows			409		-			-			409
	BMS expenses			(6,399)		(6,676)	(1)		-			277
	Same store operations			2,915		7,692			(1,411)			(3,366)
				4,304		9,819			(3,273)			(2,242)
Depreciation and amortization:
	Acquisitions, dispositions and other			6,343		7,510			(1,167)			-
	Development and redevelopment			(5,845)		(296)			(5,491)			(58)
	Same store operations			22,693		19,798			200			2,695
				23,191		27,012			(6,458)			2,637
General and administrative:
	Mark-to-market of deferred compensation plan
		liability		171		-			-			171	(2)
	Same store operations			(3,584)		(2,159)	(3)		3,044	(4)		(4,469)	(5)
				(3,413)		(2,159)			3,044			(4,298)
Impairment loss and acquisition and transaction
	related costs			162,144		-			160,700	(6)		1,444
Total increase (decrease) in expenses			$	186,226	$	34,672		$	154,013		$	(2,459)
(1)	Primarily from the termination of a third party cleaning contract in 2015.
(2)	This increase in expense is entirely offset by a corresponding increase in income from the mark-to-market of the deferred compensation plan assets, a component of “interest and other investment income, net” on our consolidated statements of income.
(3)	Results primarily from (i) the six months ended June 30, 2015 including a cumulative catch up of $986 from the acceleration of recognition of compensation expense related to the modification of the 2012-2014 Out-Performance Plans and (ii) higher capitalized leasing payroll in 2016.
(4)	Results primarily from lower capitalized payroll in 2016.
(5)	The six months ended June 30, 2015 includes a cumulative catch up of $4,542 from the acceleration of recognition of compensation expense related to the modification of the 2012-2014 Out-Performance Plans.
(6)	On March 15, 2016, we notified the servicer of the $678,000 mortgage loan on the Skyline properties in Virginia that cash flow will be insufficient to service the debt and pay other property related costs and expenses and that we were not willing to fund additional cash shortfalls.  Accordingly, at our request, the loan has been transferred to the special servicer. Consequently, based on our shortened estimated holding period for the underlying assets, we concluded that the excess of carrying amount over our estimate of fair value was not recoverable and recognized a $160,700 non-cash impairment loss in the first quarter of 2016.  The Company’s estimate of fair value was derived from a discounted cash flow model based upon market conditions and expectations of growth and utilized unobservable quantitative inputs including a capitalization rate of 8.0% and a discount rate of 8.2%.

58

 

Results of Operations – Six Months Ended June 30, 2016 Compared to June 30, 2015 - continued

Loss from Partially Owned Entities

Summarized below are the components of loss from partially owned entities for the six months ended June 30, 2016 and 2015.

(Amounts in thousands)		Percentage
		Ownership at	For the Six Months Ended June 30,
		June 30, 2016	2016		2015
Our Share of Net (Loss) Income:
Partially owned office buildings (1)		Various	$	(26,711)	$	(12,534)
Alexander's		32.4%		17,162		15,014
PREIT		8.0%		(4,815)		(364)
India real estate ventures		4.1%-36.5%		(2,620)		(16,676)
UE		5.4%		2,365		1,488
Other investments (2)		Various		11,021		4,688
			$	(3,598)	$	(8,384)
(1)	Includes interests in 280 Park Avenue, 650 Madison Avenue, One Park Avenue, 666 Fifth Avenue (Office), 7 West 34th Street, 330 Madison Avenue, 512 West 22nd Street and others.  In 2015, we recognized our $5,387 share of a write-off of a below market lease liability related to a tenant vacating at 650 Madison.
(2)	Includes interests in Independence Plaza, 85 Tenth Avenue, Fashion Center Mall, 50-70 West 93rd Street, Toys "R" Us, Inc. and others.

Income from Real Estate Fund Investments

Below are the components of the income from our real estate fund investments for the six months ended June 30, 2016 and 2015.

(Amounts in thousands)		For the Six Months Ended June 30,
		2016		2015
Net investment income		$	6,396	$	8,600
Net realized gains on exited investments			14,676		25,591
Previously recorded unrealized gain on exited investment			(14,254)		(23,279)
Net unrealized gains on held investments			20,855		39,545
Income from real estate fund investments			27,673		50,457
Less income attributable to noncontrolling interests			(14,818)		(29,411)
Income from real estate fund investments attributable to Vornado Realty L.P.(1)		$	12,855	$	21,046
(1)	Excludes management, leasing and development fees of $1,695 and $1,337 for the six months ended June 30, 2016 and 2015, respectively, which are included as a component of "fee and other income" in our consolidated statements of income.

59

 

Results of Operations – Six Months Ended June 30, 2016 Compared to June 30, 2015 - continued

Interest and Other Investment Income, net

Interest and other investment income, net was $13,754,000 for the six months ended June 30, 2016, compared to $16,458,000 for the prior year’s six months, a decrease of $2,704,000.  This decrease resulted primarily from a $2,463,000 decrease in interest on loans receivable as a result of lower outstanding loan balances.

Interest and Debt Expense

Interest and debt expense was $206,065,000 for the six months ended June 30, 2016, compared to $183,766,000 for the prior year’s six months, an increase of $22,299,000.  This increase was primarily due to (i) $13,634,000 of higher interest expense from the financings of the St. Regis Retail, 150 West 34^th Street, 100 West 33^rd Street, and our $750,000,000 delayed draw term loan, (ii) $6,374,000 of lower capitalized interest, and (iii) $2,711,000 of accrued default interest on our Skyline properties mortgage loan which has been transferred to the special servicer at our request.

Net Gain on Disposition of Wholly Owned and Partially Owned Assets

For the six months ended June 30, 2016, we recognized a $160,225,000 net gain on disposition of wholly owned and partially owned assets, primarily from the sale of a 47% ownership interest in 7 West 34th Street and net gains from the sale of residential condominiums, compared to $1,860,000 for the prior year’s six months, primarily from the sale of residential condominiums.

Income Tax (Expense) Benefit

        In the six months ended June 30, 2016, income tax expense was $4,940,000, compared to an income tax benefit of $87,101,000 for the prior year’s six months, an increase in expense of  $92,041,000.  This increase in expense resulted primarily from the prior year reversal of the valuation allowances against certain of our deferred tax assets, as we have concluded that it is more-likely-than-not that we will generate sufficient taxable income from the sale of 220 Central Park South residential condominium units to realize the deferred tax assets.

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Results of Operations – Six Months Ended June 30, 2016 Compared to June 30, 2015 - continued

Income from Discontinued Operations

We have reclassified the revenues and expenses of the UE portfolio and other retail properties that were sold or are currently held for sale to “income (loss) from discontinued operations” and the related assets and liabilities to “assets related to discontinued operations” and “liabilities related to discontinued operations” for all the periods presented in the accompanying financial statements.  The table below sets forth the combined results of assets related to discontinued operations for the six months ended June 30, 2016 and 2015.

(Amounts in thousands)	For the Six Months Ended June 30,
	2016		2015
Total revenues	$	2,129	$	22,279
Total expenses		1,148		15,393
		981		6,886
Net gains on sale of real estate		2,210		10,867
UE spin-off transaction related costs		-		(22,972)
Net gain on sale of lease position in Geary Street, CA		-		21,376
Impairment losses		-		(256)
Pretax income from discontinued operations		3,191		15,901
Income tax expense		-		(86)
Income from discontinued operations	$	3,191	$	15,815

Net Income Attributable to Noncontrolling Interests in Consolidated Subsidiaries

Net income attributable to noncontrolling interests in consolidated subsidiaries was $22,703,000 for the six months ended June 30, 2016, compared to $35,068,000 for the prior year’s six months, a decrease of $12,365,000.  This decrease resulted primarily from lower net income allocated to the noncontrolling interests, including noncontrolling interests of our real estate fund investments.

Preferred Unit Distributions

Preferred unit distributions were $40,824,000 for the six months ended June 30, 2016, compared to $39,910,000 for the prior year’s six months, an increase of $914,000. 

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Results of Operations – Six Months Ended June 30, 2016 Compared to June 30, 2015 - continued

Same Store EBITDA

Same store EBITDA represents EBITDA from property level operations which are owned by us in both the current and prior year reporting periods.  Same store EBITDA excludes segment-level overhead expenses, which are expenses that we do not consider to be property-level expenses, as well as other non-operating items.  We also present same store EBITDA on a cash basis which excludes income from the straight-lining of rents, amortization of below-market leases, net of above-market leases and other non-cash adjustments.  We present these non-GAAP measures to (i) facilitate meaningful comparisons of the operational performance of our properties and segments, (ii) make decisions on whether to buy, sell or refinance properties, and (iii) compare the performance of our properties and segments to those of our peers.  Same store EBITDA should not be considered as an alternative to net income or cash flow from operations and may not be comparable to similarly titled measures employed by other companies. 

Below are reconciliations of EBITDA to same store EBITDA for each of our segments for the six months ended June 30, 2016, compared to six months ended June 30, 2015.

(Amounts in thousands)			New York			Washington, DC
EBITDA for the six months ended June 30, 2016			$	700,624		$	(4,931)
	Add-back:
		Non-property level overhead expenses included above		17,774			15,259
	Less EBITDA from:
		Acquisitions		(18,797)			-
		Dispositions		(159,341)			(27)
		Properties taken out of service for redevelopment		(13,254)			(8)
		Other non-operating income, net		6,030			160,400
Same store EBITDA for the six months ended June 30, 2016			$	533,036		$	170,693
EBITDA for the six months ended June 30, 2015			$	524,933		$	168,891
	Add-back:
		Non-property level overhead expenses included above		19,933			12,215
	Less EBITDA from:
		Acquisitions		(1,888)			-
		Dispositions		(7,132)			(4,049)
		Properties taken out of service for redevelopment		(10,612)			(2,008)
		Other non-operating income, net		(23,096)			(1,882)
Same store EBITDA for the six months ended June 30, 2015			$	502,138		$	173,167
Increase (decrease) in same store EBITDA -
	Six months ended June 30, 2016 vs. June 30, 2015		$	30,898	(1)	$	(2,474)	(3)
% increase (decrease) in same store EBITDA				6.2%	(2)		(1.4%)
See notes on following page.

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Results of Operations – Six Months Ended June 30, 2016 Compared to June 30, 2015 - continued

Notes to preceding tabular information:

New York:

(1)The $30,898,000 increase in New York same store EBITDA resulted primarily from increases in Office and Retail EBITDA of $21,538,000 and $13,770,000, respectively, partially offset by a decrease in Hotel Pennsylvania EBITDA of $6,405,000.  The Office and Retail EBITDA increases resulted primarily from higher rents, partially offset by higher operating expenses, net of reimbursements.

(2)Excluding Hotel Pennsylvania, same store EBITDA increased by 7.5%.

Washington, DC:

(3)The $2,474,000 decrease in Washington, DC same store EBITDA resulted primarily from higher net operating expenses of $2,887,000 partially offset by higher rental revenue of $520,000.

Reconciliation of Same Store EBITDA to Cash Basis Same Store EBITDA

(Amounts in thousands)		New York			Washington, DC
Same store EBITDA for the six months ended June 30, 2016		$	533,036		$	170,693
Less: Adjustments for straight-line rents, amortization of acquired
	below-market leases, net, and other non-cash adjustments		(90,886)			(13,529)
Cash basis same store EBITDA for the six months ended
	June 30, 2016	$	442,150		$	157,164
Same store EBITDA for the six months ended June 30, 2015		$	502,138		$	173,167
Less: Adjustments for straight-line rents, amortization of acquired
	below-market leases, net, and other non-cash adjustments		(75,211)			(12,730)
Cash basis same store EBITDA for the six months ended
	June 30, 2015	$	426,927		$	160,437
Increase (decrease) in cash basis same store EBITDA -
	Six months ended June 30, 2016 vs. June 30, 2015	$	15,223		$	(3,273)
% increase (decrease) in cash basis same store EBITDA			3.6%	(1)		(2.0%)
(1)	Excluding Hotel Pennsylvania, same store EBITDA increased by 5.1% on a cash basis.

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SUPPLEMENTAL INFORMATION

Reconciliation of Net Income to EBITDA for the Three Months Ended March 31, 2016

(Amounts in thousands)	New York		Washington, DC
Net income attributable to Vornado Realty L.P. for the three months ended March 31, 2016	$	79,808	$	(146,737)
Interest and debt expense		71,198		19,406
Depreciation and amortization		108,403		42,681
Income tax expense		1,090		265
EBITDA for the three months ended March 31, 2016	$	260,499	$	(84,385)

Reconciliation of EBITDA to Same Store EBITDA – Three Months Ended June 30, 2016 Compared to March 31, 2016

(Amounts in thousands)			New York			Washington, DC
EBITDA for the three months ended June 30, 2016			$	440,125		$	79,454
	Add-back:
		Non-property level overhead expenses included above		7,807			7,295
	Less EBITDA from:
		Acquisitions		(264)			-
		Dispositions		(159,750)			7
		Properties taken out of service for redevelopment		(7,574)			(214)
		Other non-operating income, net		4,484			(136)
Same store EBITDA for the three months ended June 30, 2016			$	284,828		$	86,406
EBITDA for the three months ended March 31, 2016			$	260,499		$	(84,385)
	Add-back:
		Non-property level overhead expenses included above		9,967			7,964
	Less EBITDA from:
		Acquisitions		(2,095)			-
		Dispositions, including net gains on sale		(151)			(34)
		Properties taken out of service for redevelopment		(6,372)			209
		Other non-operating income, net		1,563			160,535
Same store EBITDA for the three months ended March 31, 2016			$	263,411		$	84,289
Increase in same store EBITDA -
	Three months ended June 30, 2016 vs. March 31, 2016		$	21,417		$	2,117
% increase in same store EBITDA				8.1%	(1)		2.5%
(1)	Excluding Hotel Pennsylvania, same store EBITDA increased by 5.3%.

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SUPPLEMENTAL INFORMATION – CONTINUED

Reconciliation of Same Store EBITDA to Cash Basis Same Store EBITDA – Three Months Ended June 30, 2016 Compared to March 31, 2016

(Amounts in thousands)		New York			Washington, DC
Same store EBITDA for the three months ended June 30, 2016		$	284,828		$	86,406
Less: Adjustments for straight-line rents, amortization of acquired
	below-market leases, net, and other non-cash adjustments		(50,970)			(7,459)
Cash basis same store EBITDA for the three months ended
	June 30, 2016	$	233,858		$	78,947
Same store EBITDA for the three months ended March 31, 2016		$	263,411		$	84,289
Less: Adjustments for straight-line rents, amortization of acquired
	below-market leases, net, and other non-cash adjustments		(49,175)			(6,059)
Cash basis same store EBITDA for the three months ended
	March 31, 2016	$	214,236		$	78,230
Increase in cash basis same store EBITDA -
	Three months ended June 30, 2016 vs. March 31, 2016	$	19,622		$	717
% increase in cash basis same store EBITDA			9.2%	(1)		0.9%
(1)	Excluding Hotel Pennsylvania, same store EBITDA increased by 5.7% on a cash basis.

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Liquidity and Capital Resources

Property rental income is our primary source of cash flow and is dependent upon the occupancy and rental rates of our properties.   Our cash requirements include property operating expenses, capital improvements, tenant improvements, leasing commissions, distributions to unitholders, as well as acquisition and development costs.  Other sources of liquidity to fund cash requirements include proceeds from debt financings, including mortgage loans, senior unsecured borrowings, and our revolving credit facilities, proceeds from the issuance of equity securities, and asset sales.    

We anticipate that cash flow from continuing operations over the next twelve months will be adequate to fund our business operations, cash distributions to unitholders, debt amortization and recurring capital expenditures.  Capital requirements for development expenditures and acquisitions may require funding from borrowings and/or equity offerings.

We may from time to time purchase or retire outstanding debt securities or redeem our equity securities.  Such purchases, if any, will depend on prevailing market conditions, liquidity requirements and other factors.  The amounts involved in connection with these transactions could be material to our consolidated financial statements.

In the first quarter of 2016, we notified the servicer of the $678,000,000 mortgage loan on the Skyline properties in Virginia that cash flow will be insufficient to service the debt and pay other property related costs and expenses and that we were not willing to fund additional cash shortfalls.  Accordingly, at our request, the loan has been transferred to the special servicer.  In the second quarter of 2016, cash flow became insufficient to service the debt and we ceased making debt service payments.  Pursuant to the loan agreement, the loan is in default, causing the loan to be immediately due and payable, and is subject to incremental default interest  which increased the weighted average interest rate from 2.97% to 4.51% while the outstanding balance remains unpaid.  This loan is recourse only to the Skyline properties.  Accordingly, this default has not had, nor is expected to have, any material impact on our current or future business operations, our ability to raise capital or our credit ratings.  For the three and six months ended June 30, 2016, we accrued $2,711,000 of default interest expense.  We continue to negotiate with the special servicer.  There can be no assurance as to the timing or ultimate resolution of this matter.

Cash Flows for the Six Months Ended June 30, 2016

Our cash and cash equivalents were $1,644,067,000 at June 30, 2016, a $191,640,000 decrease from the balance at December 31, 2015.  Our consolidated outstanding debt was $11,078,771,000 at June 30, 2016, a $12,239,000 decrease from the balance at December 31, 2015.  As of June 30, 2016 and December 31, 2015, $115,630,000 and $550,000,000, respectively, was outstanding under our revolving credit facilities.  During the remainder of 2016 and 2017, $1,288,394,000 and $362,058,000, respectively, of our outstanding debt matures; we may refinance this maturing debt as it comes due or choose to repay it.

Cash flows provided by operating activities of $323,293,000 was comprised of (i) net income of $176,774,000, (ii) $189,482,000 of non-cash adjustments, which include depreciation and amortization expense, real estate impairment losses, net gain on the disposition of wholly owned and partially owned assets, the effect of straight-lining of rental income, and loss from partially owned entities, (iii) return of capital from real estate fund investments of $71,888,000, (iv) distributions of income from partially owned entities of $46,500,000, partially offset by (v) the net change in operating assets and liabilities of $161,351,000.

Net cash used in investing activities of $432,259,000 was comprised of (i) $277,214,000 of development costs and construction in progress, (ii) $170,265,000 of additions to real estate, (iii) $90,659,000 of investments in partially owned entities, (iv) $46,807,000 of acquisitions of real estate and other, (v) $42,000,000 due to the net deconsolidation of 7 West 34th Street, (vi) $11,700,000 of investments in loans receivable, (vii) $7,483,000 of changes in restricted cash and (viii) $4,379,000 in purchases of marketable securities, partially offset by (ix) $130,249,000 of proceeds from sales of real estate and related investments and (x) $87,977,000 of capital distributions from partially owned entities.

Net cash used in financing activities of $82,674,000 was comprised of (i) $1,032,115,000 for the repayments of borrowings, (ii) $237,832,000 of distributions to Vornado, (iii) $83,266,000 of distributions to redeemable security holders and noncontrolling interests in consolidated subsidiaries, (iv) $40,727,000 of distributions to preferred unitholders, (v) $29,478,000 of debt issuance and other costs, and (vi) $186,000 for the repurchase of Class A units related to equity compensation agreements and related tax withholdings and other, partially offset by (vii) $1,325,246,000 of proceeds from borrowings, (viii) $11,874,000 of contributions from noncontrolling interests in consolidated subsidiaries and (ix) $3,810,000 of proceeds received from exercise of Vornado stock options.

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Capital Expenditures for the Six Months Ended June 30, 2016

Capital expenditures consist of expenditures to maintain assets, tenant improvement allowances and leasing commissions.  Recurring capital expenditures include expenditures to maintain a property’s competitive position within the market and tenant improvements and leasing commissions necessary to re-lease expiring leases or renew or extend existing leases.  Non-recurring capital improvements include expenditures to lease space that has been vacant for more than nine months and expenditures completed in the year of acquisition and the following two years that were planned at the time of acquisition, as well as tenant improvements and leasing commissions for space that was vacant at the time of acquisition of a property.

Below is a summary of capital expenditures, leasing commissions and a reconciliation of total expenditures on an accrual basis to the cash expended in the six months ended June 30, 2016.

(Amounts in thousands)			Total		New York		Washington, DC		Other
Expenditures to maintain assets			$	37,688	$	22,201	$	6,434	$	9,053
Tenant improvements				46,270		38,490		6,397		1,383
Leasing commissions				24,939		22,499		2,294		146
Non-recurring capital expenditures				22,971		17,104		4,861		1,006
Total capital expenditures and leasing commissions (accrual basis)				131,868		100,294		19,986		11,588
Adjustments to reconcile to cash basis:
		Expenditures in the current year applicable to prior periods		118,340		60,696		37,685		19,959
		Expenditures to be made in future periods for the current period		(44,768)		(38,368)		(11,707)		5,307
Total capital expenditures and leasing commissions (cash basis)			$	205,440	$	122,622	$	45,964	$	36,854
Tenant improvements and leasing commissions:
	Per square foot per annum		$	6.20	$	6.88	$	4.00	$	n/a
	Percentage of initial rent			9.9%		8.6%		10.0%		n/a

Development and Redevelopment Expenditures for the Six Months Ended June 30, 2016

Development and redevelopment expenditures consist of all hard and soft costs associated with the development or redevelopment of a property, including capitalized interest, debt and operating costs until the property is substantially completed and ready for its intended use.  Our development project budgets below include initial leasing costs, which are reflected as non-recurring capital expenditures in the table above.  

We are constructing a residential condominium tower containing 397,000 salable square feet on our 220 Central Park South development site.  The incremental development cost of this project is estimated to be approximately $1.3 billion, of which $446,000,000 has been expended as of June 30, 2016.

We are developing The Bartlett, a 699-unit residential project in Pentagon City, which is expected to be completed in 2016.  The project will include a 40,000 square foot Whole Foods Market at the base of the building.  The incremental development cost of this project is estimated to be approximately $250,000,000, of which $210,000,000 has been expended as of June 30, 2016.

We are developing a 173,000 square foot Class-A office building, located along the western edge of the High Line at 512 West 22nd Street in the West Chelsea submarket of Manhattan (55.0% owned).  The incremental development cost of this project is estimated to be approximately $130,000,000, of which our share is $72,000,000.  As of June 30, 2016, $20,000,000 has been expended, of which our share is $11,000,000.

We are developing 61 Ninth Avenue, located on the Southwest corner of Ninth Avenue and 15th Street in the West Chelsea submarket of Manhattan.  In February 2016, the venture purchased an adjacent five story loft building and air rights in exchange for a 10% common and preferred equity interest in the venture valued at $19,400,000, which reduced our ownership interest to 45.1% from 50.1%.  The venture’s current plans are to construct an office building, with retail at the base, of approximately 167,000 square feet.  The incremental development cost of this project is estimated to be approximately $150,000,000, of which our share is $68,000,000.  As of June 30, 2016, $18,000,000 has been expended, of which our share is $8,000,000.

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Development and Redevelopment Expenditures for the Six Months Ended June 30, 2016 - continued

We are developing a 33,000 square foot office and retail building, located on Houston Street in Manhattan (50.0% owned).   The incremental development cost of this project is estimated to be approximately $60,000,000, of which our share is $30,000,000.  As of June 30, 2016, $16,000,000 has been expended, of which our share is $8,000,000.

We plan to demolish two adjacent Washington, DC office properties, 1726 M Street and 1150 17th Street in 2016 and replace them in the future with a new 335,000 square foot Class A office building, to be addressed 1700 M Street.  The incremental development cost of the project is estimated to be approximately $170,000,000.

We are also evaluating other development and redevelopment opportunities at certain of our properties in Manhattan, including the Penn Plaza District, and in Washington, including Crystal City, Rosslyn and Pentagon City.

There can be no assurance that any of our development or redevelopment projects will commence, or if commenced, be completed, or completed on schedule or within budget.

Below is a summary of development and redevelopment expenditures incurred in the six months ended June 30, 2016.  These expenditures include interest of $16,438,000, payroll of $6,401,000 and other soft costs (primarily architectural and engineering fees, permits, real estate taxes and professional fees) aggregating $30,224,000, that were capitalized in connection with the development and redevelopment of these projects.

(Amounts in thousands)	Total		New York		Washington, DC		Other
220 Central Park South	$	130,696	$	-	$	-	$	130,696
The Bartlett		48,700		-		48,700		-
640 Fifth Avenue		17,368		17,368		-		-
90 Park Avenue		16,243		16,243		-		-
2221 South Clark Street (residential conversion)		12,589		-		12,589		-
theMART		11,031		-		-		11,031
Wayne Towne Center		7,055		-		-		7,055
Penn Plaza		6,766		6,766		-		-
330 West 34th Street		2,812		2,812		-		-
Other		23,954		5,391		17,713		850
	$	277,214	$	48,580	$	79,002	$	149,632

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Cash Flows for the Six Months Ended June 30, 2015

Our cash and cash equivalents were $516,337,000 at June 30, 2015, a $682,140,000 decrease over the balance at December 31, 2014.  The decrease is primarily due to cash flows from investing and financing activities, partially offset by cash flows from operating activities, as discussed below.

Cash flows provided by operating activities of $184,616,000 was comprised of (i) net income of $340,646,000, (ii) return of capital from real estate fund investments of $83,443,000, (iii) $51,160,000 of non-cash adjustments, which include depreciation and amortization expense, the reversal of allowance for deferred tax assets, the effect of straight-lining of rental income, loss from partially owned entities and impairment losses on real estate, and (iv) distributions of income from partially owned entities of $37,821,000, partially offset by (v) the net change in operating assets and liabilities of $328,454,000 (including the acquisition of real estate fund investments of $95,000,000).

Net cash used in investing activities of $474,602,000 was comprised of (i) $381,001,000 of acquisitions of real estate and other, (ii) $200,970,000 of development costs and construction in progress, (iii) $137,528,000 of additions to real estate, (iv) $137,465,000 of investments in partially owned entities, and (v) $23,919,000 of investments in loans receivable and other, partially offset by (vi) $334,725,000 of proceeds from sales of real estate and related investments, (vii) $29,666,000 of capital distributions from partially owned entities, (viii) $25,118,000 of changes in restricted cash, and (ix) $16,772,000 of proceeds from repayments of mortgage and mezzanine loans receivable and other.

Net cash used in financing activities of $392,154,000 was comprised of (i) $1,607,574,000 for the repayments of borrowings, (ii) $237,160,000 of distributions to Vornado, (iii) $225,000,000 of distributions in connection with the spin-off of UE, (iv) $77,447,000 of distributions to redeemable security holders and noncontrolling interests in consolidated subsidiaries, (v) $39,849,000 of distributions to preferred unitholders, (vi) $14,053,000 of debt issuance costs, and (vii) $2,939,000 for the repurchase of Class A units related to equity compensation agreements and related tax withholdings and other, partially offset by (viii) $1,746,460,000 of proceeds from borrowings, (ix) $51,725,000 of contributions from noncontrolling interests in consolidated subsidiaries, and (x) $13,683,000 of proceeds received from exercise of Vornado stock options.

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Capital Expenditures for the Six Months Ended June 30, 2015

Below is a summary of capital expenditures, leasing commissions and a reconciliation of total expenditures on an accrual basis to the cash expended in the six months ended June 30, 2015.

(Amounts in thousands)			Total		New York		Washington, DC		Other
Expenditures to maintain assets			$	46,080	$	25,985	$	6,009	$	14,086
Tenant improvements				62,363		19,798		36,913		5,652
Leasing commissions				15,610		10,144		4,677		789
Non-recurring capital expenditures				90,592		63,633		26,638		321
Total capital expenditures and leasing commissions (accrual basis)				214,645		119,560		74,237		20,848
Adjustments to reconcile to cash basis:
		Expenditures in the current year applicable to prior periods		77,839		41,085		20,826		15,928
		Expenditures to be made in future periods for the current period		(122,715)		(60,309)		(58,408)		(3,998)
Total capital expenditures and leasing commissions (cash basis)			$	169,769	$	100,336	$	36,655	$	32,778
Tenant improvements and leasing commissions:
	Per square foot per annum		$	8.25	$	9.88	$	6.83	$	n/a
	Percentage of initial rent			11.0%		8.3%		18.5%		n/a

Development and Redevelopment Expenditures for the Six Months Ended June 30, 2015

Below is a summary of development and redevelopment expenditures incurred in the six months ended June 30, 2015.  These expenditures include interest of $22,812,000, payroll of $2,115,000, and other soft costs (primarily architectural and engineering fees, permits, real estate taxes and professional fees) aggregating $39,811,000, that were capitalized in connection with the development and redevelopment of these projects.

(Amounts in thousands)	Total		New York		Washington, DC		Other
220 Central Park South	$	57,554	$	-	$	-	$	57,554
The Bartlett		41,889		-		41,889		-
330 West 34th Street		18,324		18,324		-		-
Marriott Marquis Times Square - retail and signage		15,294		15,294		-		-
Springfield Town Center		14,478		-		-		14,478
90 Park Avenue		12,868		12,868		-		-
Wayne Towne Center		10,959		-		-		10,959
2221 South Clark Street (residential conversion)		6,939		-		6,939		-
251 18th Street		3,891		-		3,891		-
Penn Plaza		2,011		2,011		-		-
608 Fifth Avenue		1,811		1,811		-		-
7 West 34th Street		1,533		1,533		-		-
Other		13,419		2,504		10,628		287
	$	200,970	$	54,345	$	63,347	$	83,278

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Other Commitments and Contingencies

We are from time to time involved in legal actions arising in the ordinary course of business. In our opinion, after consultation with legal counsel, the outcome of such matters is not expected to have a material adverse effect on our financial position, results of operations or cash flows.

Each of our properties has been subjected to varying degrees of environmental assessment at various times. The environmental assessments did not reveal any material environmental contamination. However, there can be no assurance that the identification of new areas of contamination, changes in the extent or known scope of contamination, the discovery of additional sites, or changes in cleanup requirements would not result in significant costs to us.

Generally, our mortgage loans are non-recourse to us.  However, in certain cases we have provided guarantees or master leased tenant space.  These guarantees and master leases terminate either upon the satisfaction of specified circumstances or repayment of the underlying loans.  As of June 30, 2016, the aggregate dollar amount of these guarantees and master leases is approximately $857,000,000.

At June 30, 2016, $38,576,000 of letters of credit were outstanding under one of our unsecured revolving credit facilities.  Our unsecured revolving credit facilities contain financial covenants that require us to maintain minimum interest coverage and maximum debt to market capitalization ratios, and provide for higher interest rates in the event of a decline in our ratings below Baa3/BBB. Our unsecured revolving credit facilities also contain customary conditions precedent to borrowing, including representations and warranties, and also contain customary events of default that could give rise to accelerated repayment, including such items as failure to pay interest or principal.

As of June 30, 2016, we expect to fund additional capital to certain of our partially owned entities aggregating approximately $70,000,000.

As of June 30, 2016, we have construction commitments aggregating approximately $721,173,000.

71

 

Item 3.   Quantitative and Qualitative Disclosures About Market Risk

We have exposure to fluctuations in market interest rates. Market interest rates are sensitive to many factors that are beyond our control. Our exposure to a change in interest rates on our consolidated and non-consolidated debt (all of which arises out of non-trading activity) is as follows:

(Amounts in thousands, except per unit amounts)			2016					2015
					Weighted	Effect of 1%				Weighted
			June 30,		Average	Change In		December 31,		Average
			Balance		Interest Rate	Base Rates		Balance		Interest Rate
Consolidated debt:
	Variable rate		$	3,772,565	2.19%	$	37,726	$	3,995,704	2.00%
	Fixed rate			7,421,398	4.11%		-		7,206,634	4.21%
			$	11,193,963	3.46%		37,726	$	11,202,338	3.42%
Pro rata share of debt of non-consolidated
	entities (non-recourse):
	Variable rate – excluding Toys "R" Us, Inc.		$	1,114,317	2.28%		11,143	$	485,160	1.97%
	Variable rate – Toys "R" Us, Inc.			1,026,139	6.46%		10,261		1,164,893	6.61%
	Fixed rate (including $714,421 and $661,513
		of Toys "R" Us, Inc. debt in 2016 and 2015)		2,509,040	6.14%		-		2,782,025	6.37%
			$	4,649,496	5.29%		21,404	$	4,432,078	5.95%
Total change in annual net income						$	59,130
Per Class A unit-diluted						$	0.29

We may utilize various financial instruments to mitigate the impact of interest rate fluctuations on our cash flows and earnings, including hedging strategies, depending on our analysis of the interest rate environment and the costs and risks of such strategies. As of June 30, 2016, we have an interest rate swap on a $415,000,000 mortgage loan on Two Penn Plaza that swapped the rate from LIBOR plus 1.65% (2.11% at June 30, 2016) to a fixed rate of 4.78% through March 2018 and an interest swap on a $375,000,000 mortgage loan on 888 Seventh Avenue that swapped the rate from LIBOR plus 1.60% (2.06% at June 30, 2016) to a fixed rate of 3.15% through December 2020.

In connection with the $700,000,000 refinancing of 770 Broadway, we entered into an interest rate swap from LIBOR plus 1.75% (2.21% at June 30, 2016) to a fixed rate of 2.56% through September 2020.

Fair Value of Debt

The estimated fair value of our consolidated debt is calculated based on current market prices and discounted cash flows at the current rate at which similar loans would be made to borrowers with similar credit ratings for the remaining term of such debt.  As of June 30, 2016, the estimated fair value of our consolidated debt was $10,662,000,000.

Item 4.   Controls and Procedures

Disclosure Controls and Procedures:  Vornado’s management, with the participation of the Vornado’s Chief Executive Officer and Chief Financial Officer, has evaluated the effectiveness of the Company’s disclosure controls and procedures (as such term is defined in Rule 13a‑15(e) under the Securities Exchange Act of 1934, as amended) as of the end of the period covered by this report. Based on such evaluation, the Vornado’s Chief Executive Officer and Chief Financial Officer have concluded that, as of June 30, 2016, such disclosure controls and procedures were effective.

Internal Control Over Financial Reporting:  There have not been any changes in the Company’s internal control over financial reporting (as such term is defined in Rule 13a-15(f) under the Securities and Exchange Act of 1934, as amended) during the fiscal quarter to which this report relates that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.

72

 

PART II.   OTHER INFORMATION

Item 1.  Legal Proceedings

We are from time to time involved in legal actions arising in the ordinary course of business. In our opinion, after consultation with legal counsel, the outcome of such matters is not expected to have a material adverse effect on our financial position, results of operations or cash flows.

Item 1A. Risk Factors

There were no material changes to the Risk Factors disclosed in our Annual Report on Form 10-K, as amended, for the year ended December 31, 2015.

Item 2.   Unregistered Sales of Equity Securities and Use of Proceeds

During the quarter ended June 30, 2016, we issued 26,551 Class A units in connection with equity awards issued pursuant to Vornado’s omnibus share plan, including with respect to grants of restricted Vornado common shares and restricted units of the Company and upon conversion, surrender or exchange of the Company’s units or Vornado stock options, and consideration received included $1,282,811 in cash proceeds. Such units were issued in reliance on an exemption from registration under Section 4(2) of the Securities Act of 1933, as amended.

Item 3.   Defaults Upon Senior Securities

        None.

Item 4.   Mine Safety Disclosures

        Not applicable.

Item 5.   Other Information

        None.

Item 6.   Exhibits

Exhibits required by Item 601 of Regulation S-K are filed herewith or incorporated herein by reference and are listed in the attached Exhibit Index.

73

 

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

		VORNADO REALTY L.P.
		(Registrant)
Date:  August 5, 2016	By:	/s/ Stephen W. Theriot
		Stephen W. Theriot, Chief Financial Officer of Vornado Realty Trust, sole General Partner of Vornado Realty L.P. (duly authorized officer and principal financial and accounting officer)

74

 

	EXHIBIT INDEX
Exhibit No.
	15.1	-	Letter regarding Unaudited Interim Financial Information
	31.1	-	Rule 13a-14 (a) Certification of the Chief Executive Officer
	31.2	-	Rule 13a-14 (a) Certification of the Chief Financial Officer
	32.1	-	Section 1350 Certification of the Chief Executive Officer
	32.2	-	Section 1350 Certification of the Chief Financial Officer
	101.INS	-	XBRL Instance Document
	101.SCH	-	XBRL Taxonomy Extension Schema
	101.CAL	-	XBRL Taxonomy Extension Calculation Linkbase
	101.DEF	-	XBRL Taxonomy Extension Definition Linkbase
	101.LAB	-	XBRL Taxonomy Extension Label Linkbase
	101.PRE	-	XBRL Taxonomy Extension Presentation Linkbase

75

EX-15

EXHIBIT 15.1

August 5, 2016

Vornado Realty L.P.

New York, New York

We have reviewed, in accordance with the standards of the Public Company Accounting Oversight Board (United States), the unaudited interim financial information of Vornado Realty L.P. for the periods ended June 30, 2016, and 2015, as indicated in our report dated August 5, 2016; because we did not perform an audit, we expressed no opinion on that information.

We are aware that our report referred to above, which is included in your Quarterly Report on Form 10-Q for the quarter ended June 30, 2016, is incorporated by reference in the joint Registration Statement No. 333-203294 on Form S-3 of Vornado Realty Trust and Vornado Realty L.P.

We also are aware that the aforementioned report, pursuant to Rule 436(c) under the Securities Act of 1933, is not considered a part of the Registration Statement prepared or certified by an accountant or a report prepared or certified by an accountant within the meaning of Sections 7 and 11 of that Act.

/s/ DELOITTE & TOUCHE LLP

Parsippany, New Jersey

EX-31

 

EXHIBIT 31.1

CERTIFICATION

I, Steven Roth, certify that:

1.     I have reviewed this Quarterly Report on Form 10-Q of Vornado Realty L.P.;

2.     Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.     Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.     The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure control and procedures (as defined in Exchange Act Rules 13a‑15(e) and 15d‑15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a)    Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b)    Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c)     Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d)    Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.     The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a)    All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b)    Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

August 5, 2016

/s/ Steven Roth

Steven Roth

Chairman of the Board and Chief Executive Officer

of Vornado Realty Trust, sole General Partner of

Vornado Realty L.P.

EX-31

 

EXHIBIT 31.2

CERTIFICATION

I, Stephen W. Theriot, certify that:

1.     I have reviewed this Quarterly Report on Form 10-Q of Vornado Realty L.P.;

2.     Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.     Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.     The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure control and procedures (as defined in Exchange Act Rules 13a‑15(e) and 15d‑15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a)    Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b)    Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c)     Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d)    Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.     The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a)    All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b)    Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

August 5, 2016

/s/ Stephen W. Theriot

Stephen W. Theriot

Chief Financial Officer of Vornado Realty Trust

sole General Partner of Vornado Realty L.P.

EX-32

 

EXHIBIT 32.1

CERTIFICATION

Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

(Subsection (a) and (b) of Section 1350 of Chapter 63 of Title 18 of the United States Code)

Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (subsections (a) and (b) of Section 1350 of Chapter 63 of Title 18 of the United States Code), the undersigned officer of Vornado Realty L.P. (the “Company”), hereby certifies, to such officer’s knowledge, that:

The Quarterly Report on Form 10-Q for quarter ended June 30, 2016(the “Report”) of the Company fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 and the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

August 5, 2016		/s/ Steven Roth
	Name:	Steven Roth
	Title:	Chairman of the Board and Chief Executive Officer of Vornado Realty Trust, sole General Partner of Vornado Realty L.P.

EX-32

 

EXHIBIT 32.2

CERTIFICATION

Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

(Subsection (a) and (b) of Section 1350 of Chapter 63 of Title 18 of the United States Code)

Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (subsections (a) and (b) of Section 1350 of Chapter 63 of Title 18 of the United States Code), the undersigned officer of Vornado Realty L.P. (the “Company”), hereby certifies, to such officer’s knowledge, that:

The Quarterly Report on Form 10-Q for quarter ended June 30, 2016(the “Report”) of the Company fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 and the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

August 5, 2016		/s/ Stephen W. Theriot
	Name:	Stephen W. Theriot
	Title:	Chief Financial Officer of Vornado Realty Trust, sole General Partner of Vornado Realty L.P.

XML

Document and Entity Information	6 Months Ended
	Jun. 30, 2016 shares
Document and Entity Information [Abstract]
Entity Registrant Name	VORNADO REALTY LP
Entity Central Index Key	0001040765
Document Type	10-Q
Document Period End Date	Jun. 30, 2016
Document Fiscal Year Focus	2016
Document Fiscal Period Focus	Q2
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Filer Category	Non-accelerated Filer
Entity Common Stock, Shares Outstanding	0
Entity Well Known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Trading Symbol

XML

Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Real estate, at cost:
Land	$ 4,154,201	$ 4,164,799
Buildings and improvements	12,541,161	12,582,671
Development costs and construction in progress	1,302,108	1,226,637
Leasehold improvements and equipment	112,096	116,030
Total	18,109,566	18,090,137
Less accumulated depreciation and amortization	(3,374,867)	(3,418,267)
Real estate, net	14,734,699	14,671,870
Cash and cash equivalents	1,644,067	1,835,707
Restricted cash	94,628	107,799
Marketable securities	194,489	150,997
Tenant and other receivables, net of allowance for doubtful accounts of $11,260 and $11,908	95,623	98,062
Investments in partially owned entities	1,499,792	1,550,422
Real estate fund investments	524,150	574,761
Receivable arising from the straight-lining of rents, net of allowance of $2,489 and $2,751	991,953	931,245
Deferred leasing costs, net of accumulated amortization of $227,015 and $218,239	462,649	480,421
Identified intangible assets, net of accumulated amortization of $194,463 and $187,360	210,010	227,901
Assets related to discontinued operations	8,678	37,020
Other assets	612,992	477,088
Assets	21,073,730	21,143,293
LIABILITIES, REDEEMABLE PARTNERSHIP UNITS AND EQUITY
Mortgages payable, net	9,746,818	9,513,713
Senior unsecured notes, net	844,868	844,159
Unsecured revolving credit facilities	115,630	550,000
Unsecured term loan, net	371,455	183,138
Accounts payable and accrued expenses	480,094	443,955
Deferred revenue	314,367	346,119
Deferred compensation plan	119,292	117,475
Liabilities related to discontinued operations	8,104	12,470
Other liabilities	480,030	426,965
Total liabilities	12,480,658	12,437,994
Commitments and contingencies
Redeemable partnership units:
Class A units - 12,385,829 and 12,242,820 units outstanding	1,240,069	1,223,793
Series D cumulative redeemable preferred units - 177,101 units outstanding	5,428	5,428
Total redeemable partnership units	1,245,497	1,229,221
Equity:
Partners' capital	8,420,056	8,417,454
Earnings less than distributions	(1,898,505)	(1,766,780)
Accumulated other comprehensive income	72,556	46,921
Total Vornado Realty L.P. equity	6,594,107	6,697,595
Noncontrolling interests in consolidated subsidiaries	753,468	778,483
Total equity	7,347,575	7,476,078
Total liabilities, redeemable partnership units and equity	$ 21,073,730	$ 21,143,293

XML

Consolidated Balance Sheets (Parentheticals) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
ASSETS
Tenant and other receivables, allowance for doubtful accounts (in US dollars)	$ 11,260	$ 11,908
Receivable arising from the straight-lining of rents, allowance (in US dollars)	2,489	2,751
Deferred leasing costs, accumulated amortization (in US dollars)	227,015	218,239
Identified intangible assets, accumulated amortization (in US dollars)	$ 194,463	$ 187,360
Common Class A [Member]
LIABILITIES, REDEEMABLE PARTNERSHIP UNITS AND EQUITY
Redeemable partnership units Outstanding	12,385,829	12,242,820
Series D Cumulative Redeemable Preferred Unit [Member]
LIABILITIES, REDEEMABLE PARTNERSHIP UNITS AND EQUITY
Redeemable partnership units Outstanding	177,101	177,101

XML

Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
REVENUES:
Property rentals	$ 527,178	$ 514,843	$ 1,046,670	$ 1,015,117
Tenant expense reimbursements	60,841	62,215	120,416	129,136
Fee and other income	33,689	39,230	67,659	78,837
Total revenues	621,708	616,288	1,234,745	1,223,090
EXPENSES:
Operating	245,138	242,690	501,487	497,183
Depreciation and amortization	141,313	136,957	284,270	261,079
General and administrative	45,564	39,189	94,268	97,681
Impairment loss and acquisition and transaction related costs	2,879	4,061	168,186	6,042
Total expenses	434,894	422,897	1,048,211	861,985
Operating income	186,814	193,391	186,534	361,105
Income (loss) from partially owned entities	642	(5,641)	(3,598)	(8,384)
Income from real estate fund investments	16,389	26,368	27,673	50,457
Interest and other investment income, net	10,236	5,666	13,754	16,458
Interest and debt expense	(105,576)	(92,092)	(206,065)	(183,766)
Net gain on disposition of wholly owned and partially owned assets	159,511	0	160,225	1,860
Income before income taxes	268,016	127,692	178,523	237,730
Income tax (expense) benefit	(2,109)	88,072	(4,940)	87,101
Income from continuing operations	265,907	215,764	173,583	324,831
Income (loss) from discontinued operations	2,475	(364)	3,191	15,815
Net income	268,382	215,400	176,774	340,646
Less net income attributable to noncontrolling interests in consolidated subsidiaries	(13,025)	(19,186)	(22,703)	(35,068)
Net income attributable to Vornado Realty L.P.	255,357	196,214	154,071	305,578
Preferred unit distributions	(20,412)	(20,414)	(40,824)	(39,910)
NET INCOME attributable to Class A unitholders	$ 234,945	$ 175,800	$ 113,247	$ 265,668
INCOME PER CLASS A UNIT - BASIC:
Income from continuing operations, net (in dollars per share)	$ 1.16	$ 0.88	$ 0.54	$ 1.25
Income from discontinued operations, net (in dollars per share)	0.01	0	0.02	0.08
Net income per Class A unit (in dollars per share)	$ 1.17	$ 0.88	$ 0.56	$ 1.33
Weighted average units outstanding	200,369	199,038	200,220	198,857
INCOME PER CLASS A UNIT - DILUTED:
Income from continuing operations, net (in dollars per share)	$ 1.15	$ 0.87	$ 0.54	$ 1.23
Income from discontinued operations, net (in dollars per share)	0.01	0	0.01	0.08
Net income per Class A unit (in dollars per share)	$ 1.16	$ 0.87	$ 0.55	$ 1.31
Weighted average shares outstanding	201,975	200,833	201,821	200,833
DISTRIBUTIONS PER CLASS A UNIT (in dollars per share)	$ 0.63	$ 0.63	$ 1.26	$ 1.26

XML

Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Net income	$ 268,382	$ 215,400	$ 176,774	$ 340,646
Other comprehensive income (loss):
Increase (reduction) in unrealized net gain on available-for-sale securities	28,019	(25,000)	39,113	(46,332)
Pro rata share of other comprehensive loss of nonconsolidated subsidiaries	(628)	(1,191)	(622)	(1,034)
(Reduction) increase in value of interest rate swaps and other	(6,976)	2,848	(11,171)	2,077
Comprehensive income	288,797	192,057	204,094	295,357
Less comprehensive income attributable to noncontrolling interests in consolidated subsidiaries	(13,025)	(19,186)	(22,703)	(35,068)
Comprehensive income attributable to Vornado Realty L.P.	$ 275,772	$ 172,871	$ 181,391	$ 260,289

XML

Consolidated Statements of Changes in Equity - USD ($) shares in Thousands, $ in Thousands	Total	Real estate fund investments	Other	Preferred Units	Class A Units Owned By Vornado [Member]	Earnings Less Than Distributions	Accumulated Other Comprehensive Income (Loss)	Non-controlling Interests in Consolidated Subsidiaries	Non-controlling Interests in Consolidated Subsidiaries Real estate fund investments	Non-controlling Interests in Consolidated Subsidiaries Other
Beginning balance, Units at Dec. 31, 2014				52,679	187,887
Beginning balance, Value at Dec. 31, 2014	$ 7,489,382			$ 1,277,026	$ 6,880,518	$ (1,505,385)	$ 93,267	$ 743,956
Net income attributable to Vornado Realty L.P.	305,578					305,578
Net income attributable to redeemable partnership units	(15,485)					(15,485)
Net income attributable to noncontrolling interests in consolidated subsidiaries	35,068	$ 29,411						35,068
Distribution of Urban Edge properties	(464,603)					(464,262)		(341)
Distributions to Vornado	(237,160)					(237,160)
Distributions to preferred unitholders	(39,849)					(39,849)
Class A Units issued to Vornado:
Upon redemption of redeemable Class A units, at redemption value, Shares					400
Upon redemption of redeemable Class A units, at redemption value, Value	43,278				$ 43,278
Under Vornado's employees' share option plan, Shares					195
Under Vornado's employees' share option plan, Value	10,400				$ 12,979	(2,579)
Under Vornado's dividend reinvestment plan, Shares					7
Under Vornado's dividend reinvestment plan, Value	701				$ 701
Contributions:
Contributions		51,725							$ 51,725
Distributions:
Distributions	(14,734)	(62,495)	$ (255)						(62,495)	$ (255)
Conversion of Series A preferred units to Class A units, Shares				(1)	1
Conversion of Series A preferred units to Class A units, Value				$ (16)	$ 16
Deferred compensation units and options, Units					7
Deferred compensation units and options, Value	1,295				$ 1,654	(359)
Increase (reduction) in unrealized net gain on available-for-sale securities	(46,332)						(46,332)
Pro rata share of other comprehensive loss of nonconsolidated subsidiaries	(1,034)						(1,034)
Increase (reduction) in value of interest rate swap	2,073						2,073
Adjustments to carry redeemable Class A units at redemption value	229,521				$ 229,521
Redeemable partnership units' share of above adjustments	2,635						2,635
Other	867					955	4	(92)
Ending balance, Units at Jun. 30, 2015				52,678	188,497
Ending balance, Value at Jun. 30, 2015	7,305,310			$ 1,277,010	$ 7,168,667	(1,958,546)	50,613	767,566
Beginning balance, Units at Dec. 31, 2015				52,677	188,577
Beginning balance, Value at Dec. 31, 2015	7,476,078			$ 1,276,954	$ 7,140,500	(1,766,780)	46,921	778,483
Net income attributable to Vornado Realty L.P.	154,071					154,071
Net income attributable to redeemable partnership units	(7,044)					(7,044)
Net income attributable to noncontrolling interests in consolidated subsidiaries	22,703	14,818						22,703
Distributions to Vornado	(237,832)					(237,832)
Distributions to preferred unitholders	(40,727)					(40,727)
Class A Units issued to Vornado:
Upon redemption of redeemable Class A units, at redemption value, Shares					195
Upon redemption of redeemable Class A units, at redemption value, Value	18,208				$ 18,208
Under Vornado's employees' share option plan, Shares					38
Under Vornado's employees' share option plan, Value	3,093				$ 3,093
Under Vornado's dividend reinvestment plan, Shares					8
Under Vornado's dividend reinvestment plan, Value	717				$ 717
Contributions:
Contributions			19,674							19,674
Distributions:
Distributions	(15,763)	$ (56,533)	$ (10,970)						$ (56,533)	$ (10,970)
Deferred compensation units and options, Units					7
Deferred compensation units and options, Value	768				$ 954	(186)
Increase (reduction) in unrealized net gain on available-for-sale securities	39,113						39,113
Pro rata share of other comprehensive loss of nonconsolidated subsidiaries	(622)						(622)
Increase (reduction) in value of interest rate swap	(11,170)						(11,170)
Adjustments to carry redeemable Class A units at redemption value	(20,369)				(20,369)
Redeemable partnership units' share of above adjustments	(1,685)						(1,685)
Other	102				$ (1)	(7)	(1)	111
Other, Shares					1
Ending balance, Units at Jun. 30, 2016				52,677	188,826
Ending balance, Value at Jun. 30, 2016	$ 7,347,575			$ 1,276,954	$ 7,143,102	$ (1,898,505)	$ 72,556	$ 753,468

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Consolidated Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Cash Flows from Operating Activities:
Net income	$ 176,774	$ 340,646
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization (including amortization of deferred financing costs)	299,541	272,942
Real estate impairment losses	160,700	256
Net gain on disposition of wholly owned and partially owned assets	(160,225)	(1,860)
Straight-lining of rental income	(83,883)	(64,121)
Return of capital from real estate fund investments	71,888	83,443
Distributions of income from partially owned entities	46,500	37,821
Amortization of below-market leases, net	(29,811)	(26,132)
Other non-cash adjustments	23,049	26,569
Net realized and unrealized gains on real estate fund investments	(21,277)	(41,857)
Loss from partially owned entities	3,598	7,636
Net gains on sale of real estate and other	(2,210)	(32,243)
Reversal of allowance for deferred tax assets	0	(90,030)
Changes in operating assets and liabilities:
Real estate fund investments	0	(95,000)
Tenant and other receivables, net	2,358	(5,051)
Prepaid assets	(131,927)	(138,473)
Other assets	(29,303)	(46,858)
Accounts payable and accrued expenses	6,634	(26,440)
Other liabilities	(9,113)	(16,632)
Net cash provided by operating activities	323,293	184,616
Cash Flows from Investing Activities:
Development costs and construction in progress	(277,214)	(200,970)
Additions to real estate	(170,265)	(137,528)
Proceeds from sales of real estate and related investments	130,249	334,725
Investments in partially owned entities	(90,659)	(137,465)
Distributions of capital from partially owned entities	87,977	29,666
Acquisitions of real estate and other	(46,807)	(381,001)
Net deconsolidation of 7 West 34th Street	(42,000)	0
Investments in loans receivable and other	(11,700)	(23,919)
Restricted cash	(7,483)	25,118
Purchases of marketable securities	(4,379)	0
Proceeds from sales and repayments of mortgage and mezzanine loans receivable and other	22	16,772
Net cash used in investing activities	(432,259)	(474,602)
Cash Flows from Financing Activities:
Proceeds from borrowings	1,325,246	1,746,460
Repayments of borrowings	(1,032,115)	(1,607,574)
Distributions to Vornado	(237,832)	(237,160)
Distributions to redeemable security holders and noncontrolling interests in consolidated subsidiaries	(83,266)	(77,447)
Distributions to preferred unitholders	(40,727)	(39,849)
Debt issuance and other costs	(29,478)	(14,053)
Contributions from noncontrolling interests in consolidated subsidiaries	11,874	51,725
Proceeds received from exercise of Vornado stock options	3,810	13,683
Repurchase of Class A units related to equity compensation agreements and related tax withholdings and other	(186)	(2,939)
Cash included in the spin-off of Urban Edge Properties	0	(225,000)
Net cash used in financing activities	(82,674)	(392,154)
Net decrease in cash and cash equivalents	(191,640)	(682,140)
Cash and cash equivalents at beginning of period	1,835,707	1,198,477
Cash and cash equivalents at end of period	1,644,067	516,337
Supplemental Disclosure Of Cash Flow Information:
Cash payments for interest, excluding capitalized interest of $13,918 and $17,550	181,432	178,461
Cash payments for income taxes	5,003	6,584
Non-Cash Investing and Financing Activities:
Write-off of fully depreciated assets	(220,654)	(81,027)
Accrued capital expenditures included in accounts payable and accrued expenses	144,079	70,672
Change in unrealized net gain (loss) on securities available-for-sale	39,113	(46,332)
Adjustments to carry redeemable Class A units at redemption value	(20,369)	229,521
Decrease in assets and liabilities resulting from the deconsolidation of investments that were previously consolidated
Real estate, net	(122,047)	0
Mortgages payable, net	(290,418)	0
Non-cash distribution of Urban Edge Properties:
Assets	0	1,722,263
Liabilities	0	(1,482,660)
Equity	0	(239,603)
Transfer of interest in real estate to Pennsylvania Real Estate Investment Trust	0	(145,313)
Financing assumed in acquisitions	0	62,000
Acquisitions [Member]
Non-cash distribution of Urban Edge Properties:
Like-kind exchange of real estate	46,698	62,355
Dispositions [Member]
Non-cash distribution of Urban Edge Properties:
Like-kind exchange of real estate	$ (29,639)	$ (38,822)

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Consolidated Statements of Cash Flows (Parentheticals) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Statement of Cash Flows [Abstract]
Capitalized interest	$ 13,918	$ 17,550

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Organization

6 Months Ended

Jun. 30, 2016

Organization [Abstract]

Organization

1. Organization

Vornado Realty L.P. (the “Operating Partnership” and/or the “Company”) is a Delaware limited partnership. Vornado Realty Trust (“Vornado”) is the sole general partner of, and owned approximately 93.6% of the common limited partnership interest in, the Operating Partnership at June 30, 2016. All references to “we,” “us,” “our,” the “Company” and “Operating Partnership” refer to Vornado Realty L.P. and its consolidated subsidiaries.

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Basis of Presentation

6 Months Ended

Jun. 30, 2016

Basis of Presentation [Abstract]

Basis Of Presentation

2. Basis of Presentation

The accompanying consolidated financial statements are unaudited and include the accounts of Vornado Realty L.P. and its consolidated subsidiaries. All inter-company amounts have been eliminated. In our opinion, all adjustments (which include only normal recurring adjustments) necessary to present fairly the financial position, results of operations and changes in cash flows have been made. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) have been condensed or omitted. These condensed consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q of the Securities and Exchange Commission (“SEC”) and should be read in conjunction with the consolidated financial statements and notes thereto included in our Annual Report on Form 10-K, as amended, for the year ended December 31,2015, as filed with the SEC.

We have made estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates.The results of operations for the three and six months endedJune 30,2016 are not necessarily indicative of the operating results for the full year.

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Recently Issued Accounting Literature

6 Months Ended

Jun. 30, 2016

Recently Issued Accounting Literature [Abstract]

Recently Issued Accounting Literature

3. Recently Issued Accounting Literature

In May 2014, the Financial Accounting Standards Board (“FASB”) issued an update ("ASU 2014-09") establishing Accounting Standards Codification (“ASC”) Topic 606, Revenue from Contracts with Customers(“ASC 606”). ASU 2014-09 establishes a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most of the existing revenue recognition guidance. ASU 2014-09 requires an entity to recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services and also requires certain additional disclosures. In August 2015, the FASB issued an update (“ASU 2015-14”) to ASC 606, Deferral of the Effective Date, which defers the adoption of ASU 2014-09 to interim and annual reporting periods in fiscal years that begin after December 15, 2017. In March 2016, the FASB issued an update (“ASU 2016-08”) to ASC 606, Principal versus Agent Considerations (Reporting Revenue Gross versus Net), which clarifies the implementation guidance on principal versus agent considerations in the new revenue recognition standard pursuant to ASU 2014-09. In April 2016, the FASB issued an update (“ASU 2016-10”) to ASC 606, Identifying Performance Obligations and Licensing, which clarifies guidance related to identifying performance obligations and licensing implementation guidance contained in ASU 2014-09. In May 2016, the FASB issued an update (“ASU 2016-12”) to ASC 606, Narrow-Scope Improvements and Practical Expedients, which amends certain aspects of the new revenue recognition standard pursuant to ASU 2014-09. We are currently evaluating the impact of the adoption of these ASUs on our consolidated financial statements.

In June 2014, the FASB issued an update (“ASU 2014-12”) to ASC Topic 718, Compensation – Stock Compensation (“ASC 718”). ASU 2014-12 requires an entity to treat performance targets that can be met after the requisite service period of a share based award has ended, as a performance condition that affects vesting. ASU 2014-12 is effective for interim and annual reporting periods in fiscal years that began after December 15, 2015. The adoption of this update as of January 1, 2016, did not have any impact on our consolidated financial statements.

In February 2015, the FASB issued an update (“ASU 2015-02”) Amendments to the Consolidation Analysis to ASC Topic 810, Consolidation. ASU 2015-02 affects reporting entities that are required to evaluate whether they should consolidate certain legal entities. Specifically, the amendments: (i) modify the evaluation of whether limited partnerships and similar legal entities are variable interest entities ("VIEs") or voting interest entities, (ii) eliminate the presumption that a general partner should consolidate a limited partnership, (iii) affect the consolidation analysis of reporting entities that are involved with VIEs, and (iv) provide a scope exception for certain entities. ASU 2015-02 is effective for interim and annual reporting periods beginning after December 15, 2015. The adoption of this update on January 1, 2016 resulted in the identification of additional VIEs, but did not have an impact on our consolidated financial statements other than additional disclosures (see Note 13 - Variable Interest Entities).

In January 2016, the FASB issued an update (“ASU 2016-01”) Recognition and Measurement of Financial Assets and Financial Liabilities to ASC Topic 825, Financial Instruments.  ASU 2016-01 amends certain aspects of recognition, measurement, presentation and disclosure of financial instruments, including the requirement to measure certain equity investments at fair value with changes in fair value recognized in net income.  ASU 2016-01 is effective for interim and annual reporting periods in fiscal years beginning after December 15, 2017.  We are currently evaluating the impact of the adoption of ASU 2016-01 on our consolidated financial statements.

In February 2016, the FASB issued (“ASU 2016-02”) Leases, which sets out the principles for the recognition, measurement, presentation and disclosure of leases for both lessees and lessors. ASU 2016-02 requires lessees to apply a dual approach, classifying leases as either finance or operating leases based on the principle of whether or not the lease is effectively a financed purchase.  Lessees are required to record a right-of-use asset and a lease liability for all leases with a term of greater than 12 months. Leases with a term of 12 months or less will be accounted for similar to existing guidance for operating leases. Lessees will recognize expense based on the effective interest method for finance leases or on a straight-line basis for operating leases. The new standard requires lessors to account for leases using an approach that is substantially equivalent to existing guidance. ASU 2016-02 is effective for reporting periods beginning after December 15, 2018, with early adoption permitted. We are currently evaluating the impact of the adoption of ASU 2016-02 on our consolidated financial statements.

In March 2016, the FASB issued an update (“ASU 2016-09”) Improvements to Employee Share-Based Payment Accounting to ASC 718.  ASU 2016-09amends several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. ASU 2016-09 is effective for interim and annual reporting periods in fiscal years beginning after December 15, 2017.  We are currently evaluating the impact of the adoption of ASU 2016-09 on our consolidated financial statements.

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Acquisitions

6 Months Ended

Jun. 30, 2016

Acquisitions [Abstract]

Acquisitions

4. Acquisitions

On May 20, 2016, we contributed $19,650,000 for a 50.0% equity interest in a joint venture that will develop a 33,000 square foot office and retail building, located on Houston Street in Manhattan. The development cost of this project is estimated to be approximately $104,000,000. At closing, the joint venture obtained a $65,000,000 construction loan, of which approximately $22,100,000 was outstanding at June 30, 2016.The loan, which bears interest at LIBOR plus 3.00% (3.47% at June 30, 2016), matures in May 2019 with two one-year extension options. Because this joint venture is a VIE and we determined we are the primary beneficiary, we consolidate the accounts of this joint venture from the date of our investment.

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Real Estate Fund Investments

6 Months Ended

Jun. 30, 2016

Real Estate Fund Investments [Abstract]

Real Estate Fund Investments

5. Real Estate Fund Investments

We are the general partner and investment manager of Vornado Capital Partners Real Estate Fund (the “Fund”), which has an eight-year term and a three-year investment period that ended in July 2013. During the investment period, the Fund was our exclusive investment vehicle for all investments that fit within its investment parameters, as defined. 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 Crowne Plaza Times Square Hotel Co-Investment (the “Co-Investment”), which owns a 24.7% interest in the Crowne Plaza Times Square Hotel. The Fund owns the remaining 75.3% interest. The Co-Investment is also accounted for under ASC 946. We consolidate the accounts of the Co-Investment into our consolidated financial statements, retaining the fair value basis of accounting.

At June 30, 2016, we had six real estate fund investments with an aggregate fair value of $524,150,000, or $215,215,000 in excess of cost, and had remaining unfunded commitments of $117,907,000, of which our share was $34,522,000. Below is a summary of income from the Fund and the Co-Investment for the three and six months endedJune 30, 2016 and 2015.

(Amounts in thousands)		For the Three Months Ended				For the Six Months Ended
		June 30,				June 30,
		2016		2015		2016		2015
Net investment income		$	1,723	$	2,150	$	6,396	$	8,600
Net realized gains on exited investments			-		886		14,676		25,591
Previously recorded unrealized gain on exited investment			-		-		(14,254)		(23,279)
Net unrealized gains on held investments			14,666		23,332		20,855		39,545
Income from real estate fund investments			16,389		26,368		27,673		50,457
Less income attributable to noncontrolling interests			(8,845)		(15,872)		(14,818)		(29,411)
Income from real estate fund investments attributable to Vornado Realty L.P.(1)		$	7,544	$	10,496	$	12,855	$	21,046
(1)	Excludes management, leasing and development fees of $935 and $633 for the three months ended June 30, 2016 and 2015, respectively, and $1,695 and $1,337 for the six months ended June 30, 2016 and 2015, respectively, which are included as a component of "fee and other income" in our consolidated statements of income.

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Marketable Securities

6 Months Ended

Jun. 30, 2016

Marketable Securities [Abstract]

Marketable Securities

6. Marketable Securities

Below is a summary of our marketable securities portfolio as of June 30,2016 and December 31,2015.

(Amounts in thousands)		As of June 30, 2016						As of December 31, 2015
				GAAP		Unrealized				GAAP		Unrealized
		Fair Value		Cost		Gain		Fair Value		Cost		Gain
Equity securities:
	Lexington Realty Trust	$	186,721	$	72,549	$	114,172	$	147,752	$	72,549	$	75,203
	Other		7,768		4,379		3,389		3,245		-		3,245
		$	194,489	$	76,928	$	117,561	$	150,997	$	72,549	$	78,448

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Investments in Partially Owned Entities

6 Months Ended

Jun. 30, 2016

Equity Method Investments and Joint Ventures [Abstract]

Investments in Partially Owned Entities

7. Investments in Partially Owned Entities

Alexander’s, Inc. (“Alexander’s”) (NYSE: ALX)

As of June 30,2016, we own 1,654,068Alexander’s common shares, representinga 32.4% interest in Alexander’s. We account for our investment in Alexander’s under the equity method. We manage, lease and develop Alexander’s properties pursuant to agreements which expire in March of each year and are automatically renewable.

As of June 30,2016, the market value (“fair value” pursuant to ASC Topic 820, Fair Value Measurements (“ASC 820”)) of our investment in Alexander’s, based on Alexander’s June 30,2016 closing share price of $409.23, was $676,894,000, or $547,099,000 in excess of the carrying amount on our consolidated balance sheet. As of June 30,2016, the carrying amount of our investment in Alexander’s, excluding amounts owed to us, exceeds our share of the equity in the net assets of Alexander’s by approximately $39,786,000. The majority of this basis difference resulted from the excess of our purchase price for the Alexander’s common stock acquired over the book value of Alexander’s net assets. Substantially all of this basis difference was allocated, based on our estimates of the fair values of Alexander’s assets and liabilities, to real estate (land and buildings). We are amortizing the basis difference related to the buildings into earnings as additional depreciation expense over their estimated useful lives. This depreciation is not material to our share of equity in Alexander’s net income. The basis difference related to the land will be recognized upon disposition of our investment.

Urban Edge Properties (“UE”) (NYSE: UE)

Pennsylvania Real Estate Investment Trust (“PREIT”) (NYSE: PEI)

One Park Avenue

As of June 30,2016, we own 5,717,184 UE operating partnership units, representing a 5.4% ownership interest in UE. We account for our investment in UE under the equity method and record our share of UE’s net income or loss on a one-quarter lag basis. During 2015, we provided transition services to UE, primarily for information technology, human resources, tax and financial planning. In 2016, we continue to provide UE information technology support. UE is providing us with leasing and property management services for (i) certain small retail properties that we plan to sell, and (ii) our affiliate, Alexander’s, Rego Park retail assets. As of June 30,2016, the fair value of our investment in UE, based on UE’s June 30,2016 closing share price of $29.86, was $170,715,000, or $146,847,000 in excess of the carrying amount on our consolidated balance sheet.

As of June 30,2016, we own 6,250,000 PREIT operating partnership units,representing an 8.0% interest in PREIT. We account for our investment in PREIT under the equity method and record our share of PREIT’s net income or loss on a one-quarter lag basis. As of June 30,2016, the fair value of our investment in PREIT, based on PREIT’s June 30,2016 closing share price of $21.45, was $134,063,000, or $8,241,000 in excess ofthe carrying amount on our consolidated balance sheet. As of June 30,2016, the carrying amount of our investment in PREIT exceeds our share of the equity in the net assets of PREIT by approximately $64,712,000. The majority of this basis difference resulted from the excess of the fair value of the PREIT operating units received over our share of the book value of PREIT’s net assets. Substantially all of this basis difference was allocated, based on our estimates of the fair values of PREIT’s assets and liabilities, to real estate (land and buildings). We are amortizing the basis difference related to the buildings into earnings as additional depreciation expense over their estimated useful lives. This depreciation is not material to our share of equity in PREIT’s net loss. The basis difference related to the land will be recognized upon disposition of our investment.

On March 7, 2016, the joint venture, in which we have a 55% ownership interest, completed a $300,000,000 refinancing of One Park Avenue, a 947,000 square foot Manhattan office building.  The loan matures in March 2021 and is interest only at LIBOR plus 1.75% (2.21% at June 30, 2016). The property was previously encumbered by a 4.995%, $250,000,000 mortgage which matured in March 2016.

Mezzanine Loan – New York

On March 17, 2016, we entered into a joint venture, in which we own a 33.3% interest, which owns a $142,050,000 mezzanine loan. The interest rate is LIBOR plus 8.875% (9.32% at June 30,2016) and the debt matures in November 2016, with two three-month extension options. At June 30,2016, the joint venture has a $7,950,000 remaining commitment, of which our share is $2,650,000. The joint venture’s investment is subordinate to $350,000,000 of third party debt. We account for our investment in the joint venture under the equity method.

The Warner Building

On May 6, 2016, the joint venture, in which we have a 55% ownership interest, completed a $273,000,000 refinancing of The Warner Building, a 621,000 square foot Washington, DC office building. The loan matures in June 2023, has a fixed rate of 3.65%, is interest only for the first two years and amortizes based on a 30-year schedule beginning in year three. The property was previously encumbered by a 6.26%, $293,000,000 mortgage which matured in May 2016.

280 Park Avenue

On May 11, 2016, the joint venture, in which we have a 50% ownership interest, completed a $900,000,000 refinancing of 280 Park Avenue, a 1,250,000 square foot Manhattan office building. The three-year loan with four one-year extensions is interest only at LIBOR plus 2.00%, (2.45% at ##D<DAT_QTR_NUM_CUR1>). The property was previously encumbered by a 6.35%, $721,000,000 mortgage which was scheduled to mature in June 2016.

7 West 34th Street

On May 16, 2016, we completed a $300,000,000 recourse financing of 7 West 34th Street, a 477,000 square foot Manhattan office building leased to Amazon. The ten-year loan is interest only at a fixed rate of 3.65% and matures in June 2026. Subsequently, on May 27, 2016, we sold a 47% ownership interest in this property and retained the remaining 53% interest. This transaction was based on a property value of approximately $561,000,000 or $1,176 per square foot. We received net proceeds of $127,382,000 from the sale and realized a net gain of $203,324,000, of which $159,511,000 is recognized this quarter and is included in “net gain on disposition of wholly owned and partially owned assets” in our consolidated statements of income. The remaining net gain of $43,813,000 has been deferred until our guarantee of payment of loan principal and interest has been removed or the loan has been repaid. We realized a net tax gain of $90,017,000. We continue to manage and lease the property. We share control over major decisions with our joint venture partner. Accordingly, this property is accounted for under the equity method from the date of sale.

Below are schedules summarizing our investments in, and income (loss) from, partially owned entities.

(Amounts in thousands)		Percentage
		Ownership at		Balance as of
		June 30, 2016		June 30, 2016		December 31, 2015
Investments:
	Partially owned office buildings (1)		Various	$	811,984	$	909,782
	Alexander’s		32.4%		129,795		133,568
	PREIT		8.0%		125,822		133,375
	India real estate ventures		4.1%-36.5%		45,139		48,310
	UE		5.4%		23,868		25,351
	Other investments (2)		Various		363,184		300,036
				$	1,499,792	$	1,550,422
	7 West 34th Street (3)		53.0%	$	(43,160)	$	-
(1)	Includes interests in 280 Park Avenue, 650 Madison Avenue, One Park Avenue, 666 Fifth Avenue (Office), 330 Madison Avenue, 512 West 22nd Street and others.
(2)	Includes interests in Independence Plaza, 85 Tenth Avenue, Fashion Center Mall, 50-70 West 93rd Street, Toys "R" Us, Inc. (which has a carrying amount of zero) and others.
(3)	Our negative basis results from a $43,813 deferred gain from the sale of a 47.0% ownership interest in the property and is included in "other liabilities" on our consolidated balance sheet.

(Amounts in thousands)				Percentage		For the Three Months Ended				For the Six Months Ended
				Ownership at		June 30,				June 30,
				June 30, 2016		2016		2015		2016		2015
Our Share of Net Income (Loss):
		Alexander's (see page ##PRS<ALXPAR> for details):
			Equity in net income		32.4%	$	6,812	$	5,447	$	13,749	$	11,041
			Management, leasing and development fees				1,688		1,876		3,413		3,973
							8,500		7,323		17,162		15,014
		UE (see page ##PRS<UEPAR> for details):
			Equity in net earnings		5.4%		1,071		404		1,947		404
			Management fees				209		500		418		1,084
							1,280		904		2,365		1,488
		Partially owned office buildings (1)			Various		(12,462)		(3,238)		(26,711)		(12,534)
		India real estate ventures			4.1%-36.5%		(1,934)		(16,567)		(2,620)		(16,676)
		PREIT (see page ##PRS<PREITPAR> for details)			8.0%		(527)		(364)		(4,815)		(364)
		Other investments (2)			Various		5,785		6,301		11,021		4,688
						$	642	$	(5,641)	$	(3,598)	$	(8,384)
(1)	Includes interests in 280 Park Avenue, 650 Madison Avenue, One Park Avenue, 666 Fifth Avenue (Office), 7 West 34th Street, 330 Madison Avenue, 512 West 22nd Street and others. In 2015, we recognized our $5,387 share of a write-off of a below market lease liability related to a tenant vacating at 650 Madison.
(2)	Includes interests in Independence Plaza, 85 Tenth Avenue, Fashion Center Mall, 50-70 West 93rd Street, Toys "R" Us, Inc. and others.

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Dispositions

6 Months Ended

Jun. 30, 2016

Dispositions [Abstract]

Dispositions

Discontinued Operations

The tables below set forth the assets and liabilities related to discontinued operations at June 30,2016 and December 31, 2015 and their combined results of operations and cash flows for thethree and six months endedJune 30, 2016and 2015.

(Amounts in thousands)					Balance as of
					June 30, 2016		December 31, 2015
Assets related to discontinued operations:
Real estate, net					$	3,111	$	29,561
Other assets						5,567		7,459
					$	8,678	$	37,020
Liabilities related to discontinued operations:
Other liabilities					$	8,104	$	12,470
(Amounts in thousands)	For the Three Months Ended June 30,				For the Six Months Ended June 30,
	2016		2015		2016		2015
Income (loss) from discontinued operations:
Total revenues	$	947	$	1,983	$	2,129	$	22,279
Total expenses		682		2,020		1,148		15,393
		265		(37)		981		6,886
Net gains on sale of real estate		2,210		-		2,210		10,867
UE spin-off transaction related costs		-		(327)		-		(22,972)
Net gain on sale of lease position in Geary Street, CA		-		-		-		21,376
Impairment losses		-		-		-		(256)
Pretax income from discontinued operations		2,475		(364)		3,191		15,901
Income tax expense		-		-		-		(86)
Income (loss) from discontinued operations	$	2,475	$	(364)	$	3,191	$	15,815
(Amounts in thousands)					For the Six Months Ended June 30,
					2016		2015
Cash flows related to discontinued operations:
Cash flows from operating activities					$	(4,685)	$	(35,738)
Cash flows from investing activities						-		310,069

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Identified Intangible Assets and Liabilities

6 Months Ended

Jun. 30, 2016

Identified Intangible Assets and Liabilities [Abstract]

Identified Intangible Assets and Liabilities

9. Identified Intangible Assets and Liabilities

The following summarizes our identified intangible assets (primarily above-market leases) and liabilities (primarily acquired below-market leases) as of June 30,2016 and December 31,2015.

(Amounts in thousands)	Balance as of
	June 30, 2016		December 31, 2015
Identified intangible assets:
Gross amount	$	404,473	$	415,261
Accumulated amortization		(194,463)		(187,360)
Net	$	210,010	$	227,901
Identified intangible liabilities (included in deferred revenue):
Gross amount	$	600,722	$	643,488
Accumulated amortization		(311,197)		(325,340)
Net	$	289,525	$	318,148

Amortization of acquired below-market leases, net of acquired above-market leases, resulted in an increase to rental income of $12,301,000 and $13,378,000 for the three months ended June 30,2016 and 2015, respectively, and $29,808,000 and $25,828,000 for the six months endedJune 30,2016 and 2015, respectively.Estimated annual amortization of acquired below-market leases, net of acquired above-market leases, for each of the five succeeding years commencing January 1, 2017 is as follows:

(Amounts in thousands)
2017	$	45,361
2018		44,101
2019		31,937
2020		23,365
2021		18,287

Amortization of all other identified intangible assets (a component of depreciation and amortization expense) was $8,066,000 and $5,309,000 for the three months ended June 30,2016 and 2015, respectively, and $15,859,000 and $11,494,000 for the six months endedJune 30,2016 and 2015, respectively. Estimated annual amortization of all other identified intangible assets including acquired in-place leases, customer relationships, and third party contracts for each of the five succeeding years commencing January 1, 2017 is as follows:

(Amounts in thousands)
2017	$	24,795
2018		20,541
2019		16,202
2020		12,404
2021		11,032

We are a tenant under ground leases for certain properties. Amortization of these acquired below-market leases, net of above-market leases, resulted in anincrease to rent expense of $458,000 and $458,000 for the three months ended June 30,2016 and 2015, respectively, and $916,000 and $916,000 for the six months endedJune 30,2016 and 2015. Estimated annual amortization of these below-market leases, net of above-market leases, for each of the five succeeding years commencing January 1, 2017 is as follows:

(Amounts in thousands)
2017	$	1,832
2018		1,832
2019		1,832
2020		1,832
2021		1,832

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Debt

6 Months Ended

Jun. 30, 2016

Debt Disclosure [Abstract]

Debt

10. Debt

On February 8, 2016, we completed a $700,000,000 refinancing of 770 Broadway, a 1,158,000 square foot Manhattan office building.  The five-year loan is interest only at LIBOR plus 1.75%, (2.21% at June 30, 2016) which was swapped for four and a half years to a fixed rate of 2.56%.  The Company realized net proceeds of approximately $330,000,000. The property was previously encumbered by a 5.65%, $353,000,000 mortgage which matured in March 2016.

On March 15, 2016, we notified the servicer of the $678,000,000 mortgage loan on the Skyline properties in Virginia that cash flow will be insufficient to service the debt and pay other property related costs and expenses and that we were not willing to fund additional cash shortfalls. Accordingly, at our request, the loan has been transferred to the special servicer. Consequently, based on our shortened estimated holding period for the underlying assets, we concluded that the excess of carrying amount over our estimate of fair value was not recoverable and recognized a $160,700,000 non-cash impairment loss in the first quarter of 2016. The Company’s estimate of fair value was derived from a discounted cash flow model based upon market conditions and expectations of growth and utilized unobservable quantitative inputs including a capitalization rate of 8.0% and a discount rate of 8.2%. In the second quarter of 2016, cash flow became insufficient to service the debt and weceased making debt service payments. Pursuant to the loan agreement, the loan is in default, causing the loan to be immediately due and payable, and is subject to incremental default interest which increased the weighted average interest rate from 2.97% to 4.51% while the outstanding balance remains unpaid. For the three and six months endedJune 30, 2016, we accrued $2,711,000 of default interest expense. We continue to negotiate with the special servicer. There can be no assurance as to the timing or ultimate resolution of this matter.

The following is a summary of our debt:

(Amounts in thousands)			Interest Rate at		Balance at
			June 30, 2016		June 30, 2016		December 31, 2015
Mortgages Payable:
	Fixed rate			4.17%	$	6,571,398	$	6,356,634
	Variable rate			2.28%		3,281,935		3,258,204
		Total		3.54%		9,853,333		9,614,838
	Deferred financing costs, net and other					(106,515)		(101,125)
		Total, net			$	9,746,818	$	9,513,713
Unsecured Debt:
	Senior unsecured notes			3.68%	$	850,000	$	850,000
	Deferred financing costs, net and other					(5,132)		(5,841)
		Senior unsecured notes, net				844,868		844,159
	Unsecured term loan			1.61%		375,000		187,500
	Deferred financing costs, net and other					(3,545)		(4,362)
		Unsecured term loan, net				371,455		183,138
	Unsecured revolving credit facilities			1.51%		115,630		550,000
		Total, net			$	1,331,953	$	1,577,297

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Redeemable Partnership Units

6 Months Ended

Jun. 30, 2016

Redeemable Partnership Units [Abstract]

Redeemable Partnership Units

11. Redeemable Partnership Units

Redeemable partnership units on our consolidated balance sheets are comprised primarily of Class A units held by third parties and are recorded at the greater of their carrying amount or redemption value at the end of each reporting period. Changes in the value from period to period are charged to “partners’ capital” on our consolidated balance sheets.Below is a table summarizing the activity of our redeemable partnership units.

(Amounts in thousands)
Balance at December 31, 2014	$	1,337,780
Net income		15,485
Other comprehensive loss		(2,635)
Distributions		(14,734)
Redemption of Class A units, at redemption value		(43,278)
Adjustments to carry redeemable Class A units at redemption value		(229,521)
Issuance of Series D-17 Preferred Units		4,427
Other, net		25,370
Balance at June 30, 2015	$	1,092,894
Balance at December 31, 2015	$	1,229,221
Net income		7,044
Other comprehensive income		1,685
Distributions		(15,763)
Redemption of Class A units, at redemption value		(18,208)
Adjustments to carry redeemable Class A units at redemption value		20,369
Other, net		21,149
Balance at June 30, 2016	$	1,245,497

As of June 30,2016and December 31,2015, the aggregate redemption value of redeemable Class A units, which are those units held by third parties, was $1,240,069,000and $1,223,793,000, respectively.

Redeemable partnership units exclude our Series G-1 through G-4 convertible preferred units and Series D-13 cumulative redeemable preferred units, as they are accounted for as liabilities in accordance with ASC 480, Distinguishing Liabilities and Equity, because of their possible settlement by issuing a variable number of Vornado common shares. Accordingly, the fair value of these units is included as a component of “other liabilities” on our consolidated balance sheets and aggregated $50,561,000 as ofJune 30,2016 and December 31,2015. Changes in the value from period to period, if any, are charged to “interest and debt expense” in our consolidated statements of income.

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Accumulated Other Compreshensive Income ("AOCI")

6 Months Ended

Jun. 30, 2016

Accumulated Other Comprehensive Income ("AOCI") [Abstract]

Accumulated Other Comprehensive Income ("AOCI") [Text Block]

12. Accumulated Other Comprehensive Income (“AOCI”)

The following tables set forth the changes in accumulated other comprehensive income by component.

(Amounts in thousands)				Securities		Pro rata share of		Interest
				available-		nonconsolidated		rate
		Total		for-sale		subsidiaries' OCI		swaps		Other
For the Three Months Ended June 30, 2016
Balance as of March 31, 2016		$	53,399	$	89,542	$	(9,313)	$	(23,563)	$	(3,267)
	OCI before reclassifications		19,157		28,019		(628)		(6,975)		(1,259)
	Amounts reclassified from AOCI		-		-		-		-		-
Net current period OCI			19,157		28,019		(628)		(6,975)		(1,259)
Balance as of June 30, 2016		$	72,556	$	117,561	$	(9,941)	$	(30,538)	$	(4,526)
For the Three Months Ended June 30, 2015
Balance as of March 31, 2015		$	72,609	$	112,442	$	(8,835)	$	(26,579)	$	(4,419)
	OCI before reclassifications		(21,996)		(25,000)		(1,191)		2,849		1,346
	Amounts reclassified from AOCI		-		-		-		-		-
Net current period OCI			(21,996)		(25,000)		(1,191)		2,849		1,346
Balance as of June 30, 2015		$	50,613	$	87,442	$	(10,026)	$	(23,730)	$	(3,073)
For the Six Months Ended June 30, 2016
Balance as of December 31, 2015		$	46,921	$	78,448	$	(9,319)	$	(19,368)	$	(2,840)
	OCI before reclassifications		25,635		39,113		(622)		(11,170)		(1,686)
	Amounts reclassified from AOCI		-		-		-		-		-
Net current period OCI			25,635		39,113		(622)		(11,170)		(1,686)
Balance as of June 30, 2016		$	72,556	$	117,561	$	(9,941)	$	(30,538)	$	(4,526)
For the Six Months Ended June 30, 2015
Balance as of December 31, 2014		$	93,267	$	133,774	$	(8,992)	$	(25,803)	$	(5,712)
	OCI before reclassifications		(42,654)		(46,332)		(1,034)		2,073		2,639
	Amounts reclassified from AOCI		-		-		-		-		-
Net current period OCI			(42,654)		(46,332)		(1,034)		2,073		2,639
Balance as of June 30, 2015		$	50,613	$	87,442	$	(10,026)	$	(23,730)	$	(3,073)

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Variable Interest Entities ("VIEs")

6 Months Ended

Jun. 30, 2016

Variable Interest Entities [Abstract]

Variable Interest Entities ("VIEs")

13. Variable Interest Entities

At June 30, 2016 and December 31, 2015, we have several unconsolidated VIEs. We do not consolidate these entities because we are not the primary beneficiary and the nature of our involvement in the activities of these entities does not give us power over decisions that significantly affect these entities’ economic performance. We account for our investment in these entities under the equity method (see Note 7 – Investments in Partially Owned Entities). As of June 30, 2016 and December 31, 2015, the net carrying amounts of our investment in these entities were $394,866,000and $379,939,000, respectively, and our maximum exposure to loss in these entities, is limited to our investments.

We adopted ASU 2015-02 on January 1, 2016 which resulted in the identification of several VIEs at June 30, 2016. Prior to the adoption of ASU 2015-02, these entities were consolidated under the voting interest model. Our most significant consolidated VIEs are our real estate fund investments and certain properties that have non-controlling interests. These entities are VIEs because the non-controlling interests do not have substantive kick-out or participating rights. We consolidate these entities because we control all significant business activities. As of June 30, 2016, the total assets and liabilities of these consolidated VIEs are $3,951,152,000 and $2,472,407,000 respectively.

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Fair Value Measurements

6 Months Ended

Jun. 30, 2016

Fair Value Disclosures [Abstract]

Fair Value Measurements

14. Fair Value Measurements

ASC 820defines fair value and establishes a framework for measuring fair value. The objective of fair value is to determine the price that would be received upon the sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (the exit price).ASC 820 establishes a fair value hierarchy that prioritizes observable and unobservable inputs used to measure fair value into three levels: Level 1 – quoted prices (unadjusted) in active markets that are accessible at the measurement date for assets or liabilities; Level 2 – observable prices that are based on inputs not quoted in active markets, but corroborated by market data; and Level 3 – unobservable inputs that are used when little or no market data is available. The fair value hierarchy gives the highest priority to Level 1 inputs and the lowest priority to Level 3 inputs. In determining fair value, we utilize valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible, as well as consider counterparty credit risk in our assessment of fair value. Considerable judgment is necessary to interpret Level 2 and 3 inputs in determining the fair value of our financial and non-financial assets and liabilities. Accordingly, our fair value estimates, which are made at the end of each reporting period, may be different than the amounts that may ultimately be realized upon sale or disposition of these assets.

Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis

Financial assets and liabilities that are measured at fair value on our consolidated balance sheets consist of (i) marketable securities, (ii) real estate fund investments, (iii) the assets in our deferred compensation plan (for which there is a corresponding liability on our consolidated balance sheet), (iv) mandatorily redeemable instruments (Series G-1 through G-4 convertible preferred units and Series D-13 cumulative redeemable preferred units), and (v) interest rate swaps.The tables below aggregate the fair values of these financial assets and liabilities by their levels in the fair value hierarchy as ofJune 30,2016 and December 31, 2015, respectively.

(Amounts in thousands)		As of June 30, 2016
		Total		Level 1		Level 2		Level 3
Marketable securities		$	194,489	$	194,489	$	-	$	-
Real estate fund investments			524,150		-		-		524,150
Deferred compensation plan assets (included in other assets)			119,292		59,152		-		60,140
	Total assets	$	837,931	$	253,641	$	-	$	584,290
Mandatorily redeemable instruments (included in other liabilities)		$	50,561	$	50,561	$	-	$	-
Interest rate swaps (included in other liabilities)			31,900		-		31,900		-
	Total liabilities	$	82,461	$	50,561	$	31,900	$	-
(Amounts in thousands)		As of December 31, 2015
		Total		Level 1		Level 2		Level 3
Marketable securities		$	150,997	$	150,997	$	-	$	-
Real estate fund investments			574,761		-		-		574,761
Deferred compensation plan assets (included in other assets)			117,475		58,289		-		59,186
	Total assets	$	843,233	$	209,286	$	-	$	633,947
Mandatorily redeemable instruments (included in other liabilities)		$	50,561	$	50,561	$	-	$	-
Interest rate swaps (included in other liabilities)			19,600		-		19,600		-
	Total liabilities	$	70,161	$	50,561	$	19,600	$	-

Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis - continued

Real Estate Fund Investments

At June 30,2016, we had six real estate fund investments with an aggregate fair value of $524,150,000, or $215,215,000 in excess of cost. These investments are classified as Level 3. We use a discounted cash flow valuation technique to estimate the fair value of each of these investments, which is updated quarterly by personnel responsible for the management of each investment and reviewed by senior management at each reporting period. The discounted cash flow valuation technique requires us to estimate cash flows for each investment over the anticipated holding period, which currently ranges from 1.0 to 4.5 years. Cash flows are derived from property rental revenue (base rents plus reimbursements) less operating expenses, real estate taxes and capital and other costs, plus projected sales proceeds in the year of exit. Property rental revenue is based on leases currently in place and our estimates for future leasing activity, which are based on current market rents for similar space plus a projected growth factor. Similarly, estimated operating expenses and real estate taxes are based on amounts incurred in the current period plus a projected growth factor for future periods. Anticipated sales proceeds at the end of an investment’s expected holding period are determined based on the net cash flow of the investment in the year of exit, divided by a terminal capitalization rate, less estimated selling costs.

The fair value of each property is calculated by discounting the future cash flows (including the projected sales proceeds), using an appropriate discount rate and then reduced by the property’s outstanding debt, if any, to determine the fair value of the equity in each investment. Significant unobservable quantitative inputs used in determining the fair value of each investment include capitalization rates and discount rates. These rates are based on the location, type and nature of each property, and current and anticipated market conditions, industry publications and from the experience of our Acquisitions and Capital Markets departments. Significant unobservable quantitative inputs in the table below were utilized in determining the fair value of these real estate fund investments at June 30,2016 and December 31, 2015.

				Weighted Average
		Range		(based on fair value of investments)
Unobservable Quantitative Input		June 30, 2016	December 31, 2015	June 30, 2016	December 31, 2015
	Discount rates	12.0% to 14.9%	12.0% to 14.9%	13.7%	13.6%
	Terminal capitalization rates	4.8% to 6.1%	4.8% to 6.1%	5.5%	5.5%

The above inputs are subject to change based on changes in economic and market conditions and/or changes in use or timing of exit.Changes in discount rates and terminal capitalization rates result in increases or decreases in the fair values of these investments. The discount rates encompass, among other things, uncertainties in the valuation models with respect to terminal capitalization rates and the amount and timing of cash flows. Therefore, a change in the fair value of these investments resulting from a change in the terminal capitalization rate, may be partially offset by a change in the discount rate.It is not possible for us to predict the effect of future economic or market conditions on our estimated fair values.

The table below summarizes the changes in the fair value of real estate fundinvestments that are classified as Level 3,for the three and six months endedJune 30,2016 and 2015.

(Amounts in thousands)	For the Three Months Ended June 30,				For the Six Months Ended June 30,
		2016		2015	2016		2015
Beginning balance	$	566,696	$	554,426	$	574,761	$	513,973
Purchases		-		-		-		95,000
Dispositions / distributions		(57,212)		(11,235)		(71,888)		(83,421)
Net unrealized gains		14,666		23,332		20,855		39,545
Net realized gains		-		886		422		2,312
Other, net		-		(1,433)		-		(1,433)
Ending balance	$	524,150	$	565,976	$	524,150	$	565,976

Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis - continued

Deferred Compensation Plan Assets

Deferred compensation plan assets that are classified as Level 3 consist of investments in limited partnerships and investment funds, which are managed by third parties. We receive quarterly financial reports from a third-party administrator, which are compiled from the quarterly reports provided to them from each limited partnership and investment fund. The quarterly reports provide net asset values on a fair value basis which are audited by independent public accounting firms on an annual basis. The third-party administrator does not adjust these values in determining our share of the net assets and we do not adjust these values when reported in our consolidated financial statements.

The table below summarizes the changes in the fair value of deferred compensation plan assetsthat are classified as Level 3, for the three and six months endedJune 30,2016 and 2015.

(Amounts in thousands)	For the Three Months Ended June 30,				For the Six Months Ended June 30,
		2016		2015	2016		2015
Beginning balance	$	57,184	$	64,836	$	59,186	$	63,315
Purchases		1,106		5,607		2,272		6,231
Sales		(779)		(4,655)		(2,151)		(5,093)
Realized and unrealized gain		2,219		1,387		312		2,722
Other, net		410		493		521		493
Ending balance	$	60,140	$	67,668	$	60,140	$	67,668

Financial Assets and Liabilities not Measured at Fair Value

Financial assets and liabilities that are not measured at fair value on our consolidated balance sheets include cash equivalents (primarily money market funds, which invest in obligations of the United States government), and our secured and unsecured debt. Estimates of the fair value of these instruments are determined by the standard practice of modeling the contractual cash flows required under the instrument and discounting them back to their present value at the appropriate current risk adjusted interest rate, which is provided by a third-party specialist. For floating rate debt, we use forward rates derived from observable market yield curves to project the expected cash flows we would be required to make under the instrument. The fair value of cash equivalents and borrowings under our unsecured revolving credit facilities and unsecured term loan are classified as Level 1. The fair value of our secured and unsecured debt is classified as Level 2. The table below summarizes the carrying amounts and fair value of these financial instruments as of June 30,2016 and December 31, 2015.

(Amounts in thousands)		As of June 30, 2016					As of December 31, 2015
		Carrying			Fair		Carrying			Fair
		Amount			Value		Amount			Value
Cash equivalents		$	1,134,521		$	1,135,000	$	1,295,980		$	1,296,000
Debt:
	Mortgages payable	$	9,853,333		$	9,277,000	$	9,614,838		$	9,306,000
	Senior unsecured notes		850,000			894,000		850,000			868,000
	Unsecured term loan		375,000			375,000		187,500			188,000
	Unsecured revolving credit facilities		115,630			116,000		550,000			550,000
	Total	$	11,193,963	(1)	$	10,662,000	$	11,202,338	(1)	$	10,912,000
(1)	Excludes $115,192 and $111,328 of deferred financing costs, net and other as of June 30, 2016 and December 31, 2015, respectively.

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Incentive Compensation

6 Months Ended

Jun. 30, 2016

Incentive Compensation [Abstract]

Incentive Compensation

15. Incentive Compensation

Vornado’s 2010 Omnibus Share Plan (the “Plan”) provides for grants of incentive and non-qualified Vornado stock options, restricted stock, restricted partnership units and Out-Performance Plan awards to certain of Vornado’s employees and officers. We account for all equity-based compensation in accordance with ASC 718. Equity-based compensation expense was$7,215,000and $6,685,000for the three months ended June 30,2016and 2015, respectively, and $21,786,000and $26,827,000for the six months ended June 30,2016 and 2015, respectively.

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Fee and Other Income

6 Months Ended

Jun. 30, 2016

Fee and Other Income [Abstract]

Fee and Other Income

16. Fee and Other Income

The following table sets forth the details of fee and other income:

(Amounts in thousands)	For the Three Months Ended June 30,				For the Six Months Ended June 30,
	2016		2015		2016		2015
BMS cleaning fees	$	18,794	$	21,741	$	36,940	$	44,374
Management and leasing fees		4,604		4,274		9,403		8,466
Lease termination fees		3,199		2,893		5,604		6,640
Other income		7,092		10,322		15,712		19,357
	$	33,689	$	39,230	$	67,659	$	78,837

Management and leasing fees include management fees from Interstate Properties, a related party, of $128,000 and $132,000 for the three months ended June 30,2016 and 2015, and $262,000 and $271,000for the six months ended June 30,2016 and 2015, respectively. The above table excludes fee income from partially owned entities, which is included in “income (loss) from partially owned entities” (see Note 7 – Investments in Partially Owned Entities).

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Interest and Other Investment Income, Net

6 Months Ended

Jun. 30, 2016

Interest and Other Investment Income, Net [Abstract]

Interest and Other Investment Income, Net

17. Interest and Other InvestmentIncome, Net

The following table sets forth the details of interest and other investmentincome, net:

(Amounts in thousands)		For the Three Months Ended June 30,				For the Six Months Ended June 30,
		2016		2015		2016		2015
Dividends on marketable securities		$	3,230	$	3,202	$	6,445	$	6,405
Mark-to-market income (loss) of investments in
	our deferred compensation plan (1)		4,359		(609)		2,421		2,250
Interest on loans receivable			748		1,135		1,496		3,959
Other, net			1,899		1,938		3,392		3,844
		$	10,236	$	5,666	$	13,754	$	16,458
(1)	This income (loss) is entirely offset by the income (expense) resulting from the mark-to-market of the deferred compensation plan liability, which is included in "general and administrative" expense.

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Interest and Debt Expense

6 Months Ended

Jun. 30, 2016

Interest and Debt Expense [Abstract]

Interest And Debt Expense

18. Interest and Debt Expense

The following table sets forth the details of interest and debt expense:

(Amounts in thousands)	For the Three Months Ended June 30,				For the Six Months Ended June 30,
	2016		2015		2016		2015
Interest expense	$	104,435	$	96,297	$	204,730	$	191,625
Amortization of deferred financing costs		8,508		7,497		17,773		14,953
Capitalized interest and debt expense		(7,367)		(11,702)		(16,438)		(22,812)
	$	105,576	$	92,092	$	206,065	$	183,766

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Income Per Class A Unit

6 Months Ended

Jun. 30, 2016

Income Per Share [Abstract]

Income Per Share

19. Income Per Class A Unit

The following table provides a reconciliation of both net income and the number of Class A units used in the computation of (i) basic income per Class A unit - which includes the weighted average number of Class A units outstanding without regard to dilutive potential Class A units, and (ii) diluted income per Class A unit - which includes the weighted average Class A units and dilutive unit equivalents. Dilutive unit equivalents may include our Series A convertible preferred units, Vornado stock options and restricted unit awards.

(Amounts in thousands, except per unit amounts)			For the Three Months Ended				For the Six Months Ended
			June 30,				June 30,
			2016		2015		2016		2015
Numerator:
	Income from continuing operations, net of income
		attributable to noncontrolling interests	$	252,882	$	196,578	$	150,880	$	289,763
	Income (loss) from discontinued operations			2,475		(364)		3,191		15,815
	Net income attributable to Vornado Realty L.P.			255,357		196,214		154,071		305,578
	Preferred unit distributions			(20,412)		(20,414)		(40,824)		(39,910)
	Net income attributable to Class A unitholders			234,945		175,800		113,247		265,668
	Earnings allocated to unvested participating securities			(1,059)		(1,183)		(1,412)		(1,781)
	Numerator for basic income per Class A unit			233,886		174,617		111,835		263,887
	Impact of assumed conversions:
		Convertible preferred unit distributions		22		23		-		47
	Numerator for diluted income per Class A unit		$	233,908	$	174,640	$	111,835	$	263,934
Denominator:
	Denominator for basic income per Class A unit – weighted
		average units		200,369		199,038		200,220		198,857
	Effect of dilutive securities(1):
		Vornado stock options and restricted unit awards		1,564		1,750		1,601		1,930
		Convertible preferred units		42		45		-		46
	Denominator for diluted income per Class A unit – weighted
		average units and assumed conversions		201,975		200,833		201,821		200,833
INCOME PER CLASS A UNIT – BASIC:
	Income from continuing operations, net		$	1.16	$	0.88	$	0.54	$	1.25
	Income from discontinued operations, net			0.01		-		0.02		0.08
	Net income per Class A unit		$	1.17	$	0.88	$	0.56	$	1.33
INCOME PER CLASS A UNIT – DILUTED:
	Income from continuing operations, net		$	1.15	$	0.87	$	0.54	$	1.23
	Income from discontinued operations, net			0.01		-		0.01		0.08
	Net income per Class A unit		$	1.16	$	0.87	$	0.55	$	1.31
(1)	The effect of dilutive securities for the three months ended June 30, 2016 and 2015 excludes an aggregate of 187 and 148 weighted average Class A unit equivalents, respectively, and 231 and 151 weighted average Class A unit equivalents for the six months ended June 30, 2016 and 2015, respectively, as their effect was anti-dilutive.

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Commitments and Contingencies

6 Months Ended

Jun. 30, 2016

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

20. Commitments and Contingencies

Insurance

We maintain general liability insurance with limits of $300,000,000 per occurrence and per property, and all risk property and rental value insurance with limits of $2.0 billion per occurrence, with sub-limits for certain perils such as flood and earthquake. Our California properties have earthquake insurance with coverage of $180,000,000 per occurrence and in the annual aggregate, subject to a deductible in the amount of 5% of the value of the affected property. We maintain coverage for terrorism acts with limits of $4.0 billion per occurrence and in the aggregate, and $2.0 billion per occurrence and in the aggregate for terrorism involving nuclear, biological, chemical and radiological (“NBCR”) terrorism events, as defined by Terrorism Risk Insurance Program Reauthorization Act of 2015, which expires in December 2020.

Penn Plaza Insurance Company, LLC (“PPIC”), our wholly owned consolidated subsidiary, acts as a re-insurer with respect to a portion of all risk property and rental value insurance and a portion of our earthquake insurance coverage, and as a direct insurer for coverage for acts of terrorism including NBCR acts. Coverage for acts of terrorism (excluding NBCR acts) is fully reinsured by third party insurance companies and the Federal government with no exposure to PPIC. For NBCR acts, PPIC is responsible for a deductible of $2,400,000 per occurrence and 16% of the balance of a covered loss and the Federal government is responsible for the remaining 84% of a covered loss. We are ultimately responsible for any loss incurred by PPIC.

We continue to monitor the state of the insurance market and the scope and costs of coverage for acts of terrorism. However, we cannot anticipate what coverage will be available on commercially reasonable terms in the future.

Our debt instruments, consisting of mortgage loans secured by our properties which are non-recourse to us, senior unsecured notes and revolving credit agreements contain customary covenants requiring us to maintain insurance. Although we believe that we have adequate insurance coverage for purposes of these agreements, we may not be able to obtain an equivalent amount of coverage at reasonable costs in the future. Further, if lenders insist on greater coverage than we are able to obtain, it could adversely affect our ability to finance our properties and expand our portfolio.

Other Commitments and Contingencies

We are from time to time involved in legal actions arising in the ordinary course of business. In our opinion, after consultation with legal counsel, the outcome of such matters is not expected to have a material adverse effect on our financial position, results of operations or cash flows.

Each of our properties has been subjected to varying degrees of environmental assessment at various times. The environmental assessments did not reveal any material environmental contamination. However, there can be no assurance that the identification of new areas of contamination, changes in the extent or known scope of contamination, the discovery of additional sites, or changes in cleanup requirements would not result in significant costs to us.

Generally, our mortgage loans are non-recourse to us. However, in certain cases we have provided guarantees or master leased tenant space. These guarantees and master leases terminate either upon the satisfaction of specified circumstances or repayment of the underlying loans. As of June 30,2016, the aggregate dollar amount of these guarantees and master leases is approximately $857,000,000.

At June 30,2016, $38,576,000 of letters of credit were outstanding under one of our unsecured revolving credit facilities. Our unsecured revolving credit facilities contain financial covenants that require us to maintain minimum interest coverage and maximum debt to market capitalization ratios, and provide for higher interest rates in the event of a decline in our ratings below Baa3/BBB. Our unsecured revolving credit facilities also contain customary conditions precedent to borrowing, including representations and warranties, and also contain customary events of default that could give rise to accelerated repayment, including such items as failure to pay interest or principal.

As of June 30,2016, we expect to fund additional capital to certain of our partially owned entities aggregating approximately $70,000,000.

As of June 30,2016, we have construction commitments aggregating approximately $721,173,000.

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Segment Information

6 Months Ended

Jun. 30, 2016

Segment Information [Abstract]

Segment Information

21. Segment Information

Below is a summary of net income and a reconciliation of net income to EBITDA⁽¹⁾ by segment for the three and six months endedJune 30,2016 and 2015.

(Amounts in thousands)		For the Three Months Ended June 30, 2016
			Total		New York			Washington, DC			Other
Total revenues			$	621,708	$	425,770		$	127,468		$	68,470
Total expenses				434,894		268,135			89,106			77,653
Operating income (loss)				186,814		157,635			38,362			(9,183)
Income (loss) from partially owned entities				642		(1,001)			(2,958)			4,601
Income from real estate fund investments				16,389		-			-			16,389
Interest and other investment income, net				10,236		1,214			34			8,988
Interest and debt expense				(105,576)		(56,395)			(19,817)			(29,364)
Net gain on disposition of wholly owned and partially
	owned assets			159,511		159,511			-			-
Income (loss) before income taxes				268,016		260,964			15,621			(8,569)
Income tax expense				(2,109)		(816)			(318)			(975)
Income (loss) from continuing operations				265,907		260,148			15,303			(9,544)
Income from discontinued operations				2,475		-			-			2,475
Net income (loss)				268,382		260,148			15,303			(7,069)
Less net income attributable to noncontrolling interests in
	consolidated subsidiaries			(13,025)		(3,397)			-			(9,628)
Net income (loss) attributable to Vornado Realty L.P.				255,357		256,751			15,303			(16,697)
Interest and debt expense(2)				127,799		71,171			22,641			33,987
Depreciation and amortization(2)				173,352		111,314			39,305			22,733
Income tax expense(2)				4,704		889			2,205			1,610
EBITDA(1)			$	561,212	$	440,125	(3)	$	79,454	(4)	$	41,633	(5)

(Amounts in thousands)		For the Three Months Ended June 30, 2015
			Total		New York			Washington, DC			Other
Total revenues			$	616,288	$	414,262		$	134,856		$	67,170
Total expenses				422,897		250,298			98,661			73,938
Operating income (loss)				193,391		163,964			36,195			(6,768)
(Loss) income from partially owned entities				(5,641)		3,176			(1,805)			(7,012)
Income from real estate fund investments				26,368		-			-			26,368
Interest and other investment income, net				5,666		1,892			13			3,761
Interest and debt expense				(92,092)		(47,173)			(17,483)			(27,436)
Income (loss) before income taxes				127,692		121,859			16,920			(11,087)
Income tax benefit (expense)				88,072		(1,095)			(466)			89,633
Income from continuing operations				215,764		120,764			16,454			78,546
Loss from discontinued operations				(364)		-			-			(364)
Net income				215,400		120,764			16,454			78,182
Less net income attributable to noncontrolling interests in
	consolidated subsidiaries			(19,186)		(2,552)			-			(16,634)
Net income attributable to Vornado Realty L.P.				196,214		118,212			16,454			61,548
Interest and debt expense(2)				115,073		61,057			20,891			33,125
Depreciation and amortization(2)				163,245		95,567			47,803			19,875
Income tax (benefit) expense (2)				(87,653)		1,152			486			(89,291)
EBITDA(1)			$	386,879	$	275,988	(3)	$	85,634	(4)	$	25,257	(5)

(Amounts in thousands)		For the Six Months Ended June 30, 2016
			Total		New York			Washington, DC			Other
Total revenues			$	1,234,745	$	836,595		$	255,480		$	142,670
Total expenses				1,048,211		537,730			345,671			164,810
Operating income (loss)				186,534		298,865			(90,191)			(22,140)
(Loss) income from partially owned entities				(3,598)		(4,564)			(5,001)			5,967
Income from real estate fund investments				27,673		-			-			27,673
Interest and other investment income, net				13,754		2,329			92			11,333
Interest and debt expense				(206,065)		(110,981)			(35,752)			(59,332)
Net gain on disposition of wholly owned and partially
	owned assets			160,225		159,511			-			714
Income (loss) before income taxes				178,523		345,160			(130,852)			(35,785)
Income tax expense				(4,940)		(1,775)			(582)			(2,583)
Income (loss) from continuing operations				173,583		343,385			(131,434)			(38,368)
Income from discontinued operations				3,191		-			-			3,191
Net income (loss)				176,774		343,385			(131,434)			(35,177)
Less net income attributable to noncontrolling interests in
	consolidated subsidiaries			(22,703)		(6,826)			-			(15,877)
Net income (loss) attributable to Vornado Realty L.P.				154,071		336,559			(131,434)			(51,054)
Interest and debt expense(2)				253,919		142,369			42,047			69,503
Depreciation and amortization(2)				348,163		219,717			81,986			46,460
Income tax expense (2)				7,965		1,979			2,470			3,516
EBITDA(1)			$	764,118	$	700,624	(3)	$	(4,931)	(4)	$	68,425	(5)

(Amounts in thousands)		For the Six Months Ended June 30, 2015
		Total		New York			Washington, DC			Other
Total revenues		$	1,223,090	$	813,775		$	268,824		$	140,491
Total expenses			861,985		503,058			191,658			167,269
Operating income (loss)			361,105		310,717			77,166			(26,778)
Loss from partially owned entities			(8,384)		(2,487)			(1,674)			(4,223)
Income from real estate fund investments			50,457		-			-			50,457
Interest and other investment income, net			16,458		3,754			26			12,678
Interest and debt expense			(183,766)		(92,524)			(35,643)			(55,599)
Net gain on disposition of wholly owned and partially
	owned assets		1,860		-			-			1,860
Income (loss) before income taxes			237,730		219,460			39,875			(21,605)
Income tax benefit (expense)			87,101		(2,038)			208			88,931
Income from continuing operations			324,831		217,422			40,083			67,326
Income from discontinued operations			15,815		-			-			15,815
Net income			340,646		217,422			40,083			83,141
Less net income attributable to noncontrolling interests in
	consolidated subsidiaries		(35,068)		(4,058)			-			(31,010)
Net income attributable to Vornado Realty L.P.			305,578		213,364			40,083			52,131
Interest and debt expense(2)			229,748		119,724			42,403			67,621
Depreciation and amortization(2)			319,695		189,691			88,555			41,449
Income tax (benefit) expense(2)			(88,392)		2,154			(2,150)			(88,396)
EBITDA(1)		$	766,629	$	524,933	(3)	$	168,891	(4)	$	72,805	(5)
See notes on the following pages.

Notes to preceding tabular information:
(1)	EBITDA represents "Earnings Before Interest, Taxes, Depreciation and Amortization." We consider EBITDA a non-GAAP financial measure for making decisions and assessing the unlevered performance of our segments as it relates to the total return on assets as opposed to the levered return on equity. As properties are bought and sold based on a multiple of EBITDA, we utilize this measure to make investment decisions as well as to compare the performance of our assets to that of our peers. EBITDA should not be considered a substitute for net income. EBITDA may not be comparable to similarly titled measures employed by other companies.
(2)	Interest and debt expense, depreciation and amortization and income tax expense (benefit) in the reconciliation of net income (loss) to EBITDA includes our share of these items from partially owned entities.
(3)	The elements of "New York" EBITDA are summarized below.
	(Amounts in thousands)		For the Three Months Ended				For the Six Months Ended
			June 30,				June 30,
			2016		2015		2016		2015
	Office(a)		$	163,060	$	165,031	$	315,789	$	319,340
	Retail			95,615		86,151		188,938		167,456
	Residential			6,337		5,709		12,687		10,759
	Alexander's			11,805		10,241		23,374		20,648
	Hotel Pennsylvania			3,797		8,856		325		6,730
				280,614		275,988		541,113		524,933
	Gain on sale of 47% ownership interest
		in 7 West 34th Street		159,511		-		159,511		-
		Total New York	$	440,125	$	275,988	$	700,624	$	524,933
	(a)	The three and six months ended June 30, 2015 include $3,304 and $6,844, respectively, of EBITDA from 20 Broad Street which was sold in December 2015. Excluding these items, EBITDA was $161,727 and $312,496, respectively.
(4)	The elements of "Washington, DC" EBITDA are summarized below.
	(Amounts in thousands)		For the Three Months Ended				For the Six Months Ended
			June 30,				June 30,
			2016		2015		2016		2015
	Office, excluding the Skyline properties (a)		$	63,757	$	68,509	$	124,573	$	135,878
	Skyline properties			4,863		6,984		9,955		13,039
	Skyline properties impairment loss			-		-		(160,700)		-
		Total Office		68,620		75,493		(26,172)		148,917
	Residential			10,834		10,141		21,241		19,974
		Total Washington, DC	$	79,454	$	85,634	$	(4,931)	$	168,891
	(a)	The three and six months ended June 30, 2015 include $2,067 and $3,990, respectively, of EBITDA from 1750 Pennsylvania Avenue which was sold in September 2015. Excluding these items, EBITDA was $66,442 and $131,888, respectively.

Notes to preceding tabular information - continued:
(5)	The elements of "Other" EBITDA are summarized below.
	(Amounts in thousands)		For the Three Months Ended				For the Six Months Ended
			June 30,				June 30,
			2016		2015		2016		2015
	Our share of real estate fund investments:
		Income before net realized/unrealized gains	$	1,526	$	2,671	$	3,757	$	4,285
		Net realized/unrealized gains on investments		3,890		4,916		5,451		10,464
		Carried interest		2,128		2,909		3,647		6,297
	Total			7,544		10,496		12,855		21,046
	theMART (including trade shows)			25,965		22,144		48,993		43,185
	555 California Street			12,117		12,831		23,732		25,232
	India real estate ventures			430		375		1,749		2,216
	Other investments			14,741		9,424		27,063		16,183
				60,797		55,270		114,392		107,862
	Corporate general and administrative expenses(a) (b)			(24,239)		(23,760)		(54,845)		(59,702)
	Investment income and other, net(a)			5,471		6,561		12,446		15,323
	Acquisition and transaction related costs			(2,879)		(4,061)		(7,486)		(6,042)
	UE and residual retail properties discontinued operations(c)			2,483		1,540		3,204		23,797
	Our share of impairment loss on India real estate ventures			-		(14,806)		-		(14,806)
	Our share of gains on sale of real estate of partially owned entities			-		4,513		-		4,513
	Net gain on sale of residential condominiums			-		-		714		1,860
			$	41,633	$	25,257	$	68,425	$	72,805
	(a)	The amounts in these captions (for this table only) exclude the results of the mark-to-market of our deferred compensation plan of $4,359 of income and $609 of loss for the three months ended June 30, 2016 and 2015, respectively, and $2,421 and $2,250 of income for the six months ended June 30, 2016 and 2015, respectively.
	(b)	The six months ended June 30, 2015 includes a cumulative catch up of $4,542 from the acceleration of recognition of compensation expense related to the modification of the 2012-2014 Out-Performance Plans.
	(c)	The three and six months ended June 30, 2015 include $327 and $22,972, respectively, of transaction costs related to the spin-off of our strip shopping centers and malls.

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Subsequent Events

6 Months Ended

Jun. 30, 2016

Subsequent Events [Abstract]

Subsequent Events

22. Subsequent Events

On August 1, 2016, Vornado announced that it is redeeming all of its outstanding 6.875% Series J Cumulative Redeemable Preferred Shares on September 1, 2016 at a redemption price of $25.00 per share, or $246,250,000 in the aggregate, plus accrued and unpaid dividends through the date of redemption. Accordingly, we will be redeeming all of our 6.875% Series J Cumulative Redeemable Preferred Units on the same date and at the same price.

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Basis of Presentation (Policy)

6 Months Ended

Jun. 30, 2016

Basis of Presentation [Abstract]

Basis of Presentation [Policy Text Block]

The accompanying consolidated financial statements are unaudited and include the accounts of Vornado Realty L.P. and its consolidated subsidiaries. All inter-company amounts have been eliminated. In our opinion, all adjustments (which include only normal recurring adjustments) necessary to present fairly the financial position, results of operations and changes in cash flows have been made. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) have been condensed or omitted. These condensed consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q of the Securities and Exchange Commission (“SEC”) and should be read in conjunction with the consolidated financial statements and notes thereto included in our Annual Report on Form 10-K, as amended, for the year ended December 31,2015, as filed with the SEC.

We have made estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates.The results of operations for the three and six months endedJune 30,2016 are not necessarily indicative of the operating results for the full year.

Recently Issued Accounting Literature [Policy Text Block]

3. Recently Issued Accounting Literature

In May 2014, the Financial Accounting Standards Board (“FASB”) issued an update ("ASU 2014-09") establishing Accounting Standards Codification (“ASC”) Topic 606, Revenue from Contracts with Customers(“ASC 606”). ASU 2014-09 establishes a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most of the existing revenue recognition guidance. ASU 2014-09 requires an entity to recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services and also requires certain additional disclosures. In August 2015, the FASB issued an update (“ASU 2015-14”) to ASC 606, Deferral of the Effective Date, which defers the adoption of ASU 2014-09 to interim and annual reporting periods in fiscal years that begin after December 15, 2017. In March 2016, the FASB issued an update (“ASU 2016-08”) to ASC 606, Principal versus Agent Considerations (Reporting Revenue Gross versus Net), which clarifies the implementation guidance on principal versus agent considerations in the new revenue recognition standard pursuant to ASU 2014-09. In April 2016, the FASB issued an update (“ASU 2016-10”) to ASC 606, Identifying Performance Obligations and Licensing, which clarifies guidance related to identifying performance obligations and licensing implementation guidance contained in ASU 2014-09. In May 2016, the FASB issued an update (“ASU 2016-12”) to ASC 606, Narrow-Scope Improvements and Practical Expedients, which amends certain aspects of the new revenue recognition standard pursuant to ASU 2014-09. We are currently evaluating the impact of the adoption of these ASUs on our consolidated financial statements.

In June 2014, the FASB issued an update (“ASU 2014-12”) to ASC Topic 718, Compensation – Stock Compensation (“ASC 718”). ASU 2014-12 requires an entity to treat performance targets that can be met after the requisite service period of a share based award has ended, as a performance condition that affects vesting. ASU 2014-12 is effective for interim and annual reporting periods in fiscal years that began after December 15, 2015. The adoption of this update as of January 1, 2016, did not have any impact on our consolidated financial statements.

In February 2015, the FASB issued an update (“ASU 2015-02”) Amendments to the Consolidation Analysis to ASC Topic 810, Consolidation. ASU 2015-02 affects reporting entities that are required to evaluate whether they should consolidate certain legal entities. Specifically, the amendments: (i) modify the evaluation of whether limited partnerships and similar legal entities are variable interest entities ("VIEs") or voting interest entities, (ii) eliminate the presumption that a general partner should consolidate a limited partnership, (iii) affect the consolidation analysis of reporting entities that are involved with VIEs, and (iv) provide a scope exception for certain entities. ASU 2015-02 is effective for interim and annual reporting periods beginning after December 15, 2015. The adoption of this update on January 1, 2016 resulted in the identification of additional VIEs, but did not have an impact on our consolidated financial statements other than additional disclosures (see Note 13 - Variable Interest Entities).

In January 2016, the FASB issued an update (“ASU 2016-01”) Recognition and Measurement of Financial Assets and Financial Liabilities to ASC Topic 825, Financial Instruments.  ASU 2016-01 amends certain aspects of recognition, measurement, presentation and disclosure of financial instruments, including the requirement to measure certain equity investments at fair value with changes in fair value recognized in net income.  ASU 2016-01 is effective for interim and annual reporting periods in fiscal years beginning after December 15, 2017.  We are currently evaluating the impact of the adoption of ASU 2016-01 on our consolidated financial statements.

In February 2016, the FASB issued (“ASU 2016-02”) Leases, which sets out the principles for the recognition, measurement, presentation and disclosure of leases for both lessees and lessors. ASU 2016-02 requires lessees to apply a dual approach, classifying leases as either finance or operating leases based on the principle of whether or not the lease is effectively a financed purchase.  Lessees are required to record a right-of-use asset and a lease liability for all leases with a term of greater than 12 months. Leases with a term of 12 months or less will be accounted for similar to existing guidance for operating leases. Lessees will recognize expense based on the effective interest method for finance leases or on a straight-line basis for operating leases. The new standard requires lessors to account for leases using an approach that is substantially equivalent to existing guidance. ASU 2016-02 is effective for reporting periods beginning after December 15, 2018, with early adoption permitted. We are currently evaluating the impact of the adoption of ASU 2016-02 on our consolidated financial statements.

In March 2016, the FASB issued an update (“ASU 2016-09”) Improvements to Employee Share-Based Payment Accounting to ASC 718.  ASU 2016-09amends several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. ASU 2016-09 is effective for interim and annual reporting periods in fiscal years beginning after December 15, 2017.  We are currently evaluating the impact of the adoption of ASU 2016-09 on our consolidated financial statements.

Real Estate Fund Investments [Policy Text Block]

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.

Redeemable Noncontrolling Interests [Policy Text Block]

Redeemable partnership units on our consolidated balance sheets are comprised primarily of Class A units held by third parties and are recorded at the greater of their carrying amount or redemption value at the end of each reporting period. Changes in the value from period to period are charged to “partners’ capital” on our consolidated balance sheets.

Redeemable partnership units exclude our Series G-1 through G-4 convertible preferred units and Series D-13 cumulative redeemable preferred units, as they are accounted for as liabilities in accordance with ASC 480, Distinguishing Liabilities and Equity, because of their possible settlement by issuing a variable number of Vornado common shares.

Fair Value Measurement [Policy Text Block]

In determining fair value, we utilize valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible, as well as consider counterparty credit risk in our assessment of fair value. Considerable judgment is necessary to interpret Level 2 and 3 inputs in determining the fair value of our financial and non-financial assets and liabilities. Accordingly, our fair value estimates, which are made at the end of each reporting period, may be different than the amounts that may ultimately be realized upon sale or disposition of these assets.

Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis

Financial assets and liabilities that are measured at fair value on our consolidated balance sheets consist of (i) marketable securities, (ii) real estate fund investments, (iii) the assets in our deferred compensation plan (for which there is a corresponding liability on our consolidated balance sheet), (iv) mandatorily redeemable instruments (Series G-1 through G-4 convertible preferred units and Series D-13 cumulative redeemable preferred units), and (v) interest rate swaps.

Financial Assets and Liabilities not Measured at Fair Value

Financial assets and liabilities that are not measured at fair value on our consolidated balance sheets include cash equivalents (primarily money market funds, which invest in obligations of the United States government), and our secured and unsecured debt. Estimates of the fair value of these instruments are determined by the standard practice of modeling the contractual cash flows required under the instrument and discounting them back to their present value at the appropriate current risk adjusted interest rate, which is provided by a third-party specialist. For floating rate debt, we use forward rates derived from observable market yield curves to project the expected cash flows we would be required to make under the instrument. The fair value of cash equivalents and borrowings under our unsecured revolving credit facilities and unsecured term loan are classified as Level 1. The fair value of our secured and unsecured debt is classified as Level 2.

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Real Estate Fund Investments (Tables)

6 Months Ended

Jun. 30, 2016

Real Estate Fund Investments [Abstract]

Schedule Of Income And Loss From The Fund [Table Text Block]

Below is a summary of income from the Fund and the Co-Investment for the three and six months endedJune 30, 2016 and 2015.

(Amounts in thousands)		For the Three Months Ended				For the Six Months Ended
		June 30,				June 30,
		2016		2015		2016		2015
Net investment income		$	1,723	$	2,150	$	6,396	$	8,600
Net realized gains on exited investments			-		886		14,676		25,591
Previously recorded unrealized gain on exited investment			-		-		(14,254)		(23,279)
Net unrealized gains on held investments			14,666		23,332		20,855		39,545
Income from real estate fund investments			16,389		26,368		27,673		50,457
Less income attributable to noncontrolling interests			(8,845)		(15,872)		(14,818)		(29,411)
Income from real estate fund investments attributable to Vornado Realty L.P.(1)		$	7,544	$	10,496	$	12,855	$	21,046
(1)	Excludes management, leasing and development fees of $935 and $633 for the three months ended June 30, 2016 and 2015, respectively, and $1,695 and $1,337 for the six months ended June 30, 2016 and 2015, respectively, which are included as a component of "fee and other income" in our consolidated statements of income.

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Marketable Securities (Tables)

6 Months Ended

Jun. 30, 2016

Marketable Securities [Abstract]

Marketable Securities [Table Text Block]

Below is a summary of our marketable securities portfolio as of June 30,2016 and December 31,2015.

(Amounts in thousands)		As of June 30, 2016						As of December 31, 2015
				GAAP		Unrealized				GAAP		Unrealized
		Fair Value		Cost		Gain		Fair Value		Cost		Gain
Equity securities:
	Lexington Realty Trust	$	186,721	$	72,549	$	114,172	$	147,752	$	72,549	$	75,203
	Other		7,768		4,379		3,389		3,245		-		3,245
		$	194,489	$	76,928	$	117,561	$	150,997	$	72,549	$	78,448

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Investments in Partially Owned Entities (Tables)

6 Months Ended

Jun. 30, 2016

Schedule Of Equity Method Investments [Line Items]

Equity Method Investments [Table Text Block]

Below are schedules summarizing our investments in, and income (loss) from, partially owned entities.

(Amounts in thousands)		Percentage
		Ownership at		Balance as of
		June 30, 2016		June 30, 2016		December 31, 2015
Investments:
	Partially owned office buildings (1)		Various	$	811,984	$	909,782
	Alexander’s		32.4%		129,795		133,568
	PREIT		8.0%		125,822		133,375
	India real estate ventures		4.1%-36.5%		45,139		48,310
	UE		5.4%		23,868		25,351
	Other investments (2)		Various		363,184		300,036
				$	1,499,792	$	1,550,422
	7 West 34th Street (3)		53.0%	$	(43,160)	$	-
(1)	Includes interests in 280 Park Avenue, 650 Madison Avenue, One Park Avenue, 666 Fifth Avenue (Office), 330 Madison Avenue, 512 West 22nd Street and others.
(2)	Includes interests in Independence Plaza, 85 Tenth Avenue, Fashion Center Mall, 50-70 West 93rd Street, Toys "R" Us, Inc. (which has a carrying amount of zero) and others.
(3)	Our negative basis results from a $43,813 deferred gain from the sale of a 47.0% ownership interest in the property and is included in "other liabilities" on our consolidated balance sheet.

(Amounts in thousands)				Percentage		For the Three Months Ended				For the Six Months Ended
				Ownership at		June 30,				June 30,
				June 30, 2016		2016		2015		2016		2015
Our Share of Net Income (Loss):
		Alexander's (see page ##PRS<ALXPAR> for details):
			Equity in net income		32.4%	$	6,812	$	5,447	$	13,749	$	11,041
			Management, leasing and development fees				1,688		1,876		3,413		3,973
							8,500		7,323		17,162		15,014
		UE (see page ##PRS<UEPAR> for details):
			Equity in net earnings		5.4%		1,071		404		1,947		404
			Management fees				209		500		418		1,084
							1,280		904		2,365		1,488
		Partially owned office buildings (1)			Various		(12,462)		(3,238)		(26,711)		(12,534)
		India real estate ventures			4.1%-36.5%		(1,934)		(16,567)		(2,620)		(16,676)
		PREIT (see page ##PRS<PREITPAR> for details)			8.0%		(527)		(364)		(4,815)		(364)
		Other investments (2)			Various		5,785		6,301		11,021		4,688
						$	642	$	(5,641)	$	(3,598)	$	(8,384)
(1)	Includes interests in 280 Park Avenue, 650 Madison Avenue, One Park Avenue, 666 Fifth Avenue (Office), 7 West 34th Street, 330 Madison Avenue, 512 West 22nd Street and others. In 2015, we recognized our $5,387 share of a write-off of a below market lease liability related to a tenant vacating at 650 Madison.
(2)	Includes interests in Independence Plaza, 85 Tenth Avenue, Fashion Center Mall, 50-70 West 93rd Street, Toys "R" Us, Inc. and others.

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Dispositions (Tables)

6 Months Ended

Jun. 30, 2016

Dispositions [Abstract]

Schedule of Disposal Groups, Including Discontinued Operations, Income Statement, Balance Sheet and Additional Disclosures [Table Text Block]

The tables below set forth the assets and liabilities related to discontinued operations at June 30,2016 and December 31, 2015 and their combined results of operations and cash flows for thethree and six months endedJune 30, 2016and 2015.

(Amounts in thousands)					Balance as of
					June 30, 2016		December 31, 2015
Assets related to discontinued operations:
Real estate, net					$	3,111	$	29,561
Other assets						5,567		7,459
					$	8,678	$	37,020
Liabilities related to discontinued operations:
Other liabilities					$	8,104	$	12,470
(Amounts in thousands)	For the Three Months Ended June 30,				For the Six Months Ended June 30,
	2016		2015		2016		2015
Income (loss) from discontinued operations:
Total revenues	$	947	$	1,983	$	2,129	$	22,279
Total expenses		682		2,020		1,148		15,393
		265		(37)		981		6,886
Net gains on sale of real estate		2,210		-		2,210		10,867
UE spin-off transaction related costs		-		(327)		-		(22,972)
Net gain on sale of lease position in Geary Street, CA		-		-		-		21,376
Impairment losses		-		-		-		(256)
Pretax income from discontinued operations		2,475		(364)		3,191		15,901
Income tax expense		-		-		-		(86)
Income (loss) from discontinued operations	$	2,475	$	(364)	$	3,191	$	15,815
(Amounts in thousands)					For the Six Months Ended June 30,
					2016		2015
Cash flows related to discontinued operations:
Cash flows from operating activities					$	(4,685)	$	(35,738)
Cash flows from investing activities						-		310,069

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Identified Intangible Assets and Liabilities (Tables)

6 Months Ended

Jun. 30, 2016

Finite-Lived Intangible Assets [Line Items]

Schedule of Identified Intangible Assets and Intangible Liabilities [Table Text Block]

The following summarizes our identified intangible assets (primarily above-market leases) and liabilities (primarily acquired below-market leases) as of June 30,2016 and December 31,2015.

(Amounts in thousands)	Balance as of
	June 30, 2016		December 31, 2015
Identified intangible assets:
Gross amount	$	404,473	$	415,261
Accumulated amortization		(194,463)		(187,360)
Net	$	210,010	$	227,901
Identified intangible liabilities (included in deferred revenue):
Gross amount	$	600,722	$	643,488
Accumulated amortization		(311,197)		(325,340)
Net	$	289,525	$	318,148

Below Market Leases Net Of Above Market Leases [Member]

Finite-Lived Intangible Assets [Line Items]

Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block]

Estimated annual amortization of acquired below-market leases, net of acquired above-market leases, for each of the five succeeding years commencing January 1, 2017 is as follows:

(Amounts in thousands)
2017	$	45,361
2018		44,101
2019		31,937
2020		23,365
2021		18,287

Other Identified Intangible Assets [Member]

Finite-Lived Intangible Assets [Line Items]

Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block]

Estimated annual amortization of all other identified intangible assets including acquired in-place leases, customer relationships, and third party contracts for each of the five succeeding years commencing January 1, 2017 is as follows:

(Amounts in thousands)
2017	$	24,795
2018		20,541
2019		16,202
2020		12,404
2021		11,032

Tenant Under Ground Leases [Member]

Finite-Lived Intangible Assets [Line Items]

Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block]

Estimated annual amortization of these below-market leases, net of above-market leases, for each of the five succeeding years commencing January 1, 2017 is as follows:

(Amounts in thousands)
2017	$	1,832
2018		1,832
2019		1,832
2020		1,832
2021		1,832

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Debt (Tables)

6 Months Ended

Jun. 30, 2016

Debt Disclosure [Abstract]

Schedule of Debt [Table Text Block]

The following is a summary of our debt:

(Amounts in thousands)			Interest Rate at		Balance at
			June 30, 2016		June 30, 2016		December 31, 2015
Mortgages Payable:
	Fixed rate			4.17%	$	6,571,398	$	6,356,634
	Variable rate			2.28%		3,281,935		3,258,204
		Total		3.54%		9,853,333		9,614,838
	Deferred financing costs, net and other					(106,515)		(101,125)
		Total, net			$	9,746,818	$	9,513,713
Unsecured Debt:
	Senior unsecured notes			3.68%	$	850,000	$	850,000
	Deferred financing costs, net and other					(5,132)		(5,841)
		Senior unsecured notes, net				844,868		844,159
	Unsecured term loan			1.61%		375,000		187,500
	Deferred financing costs, net and other					(3,545)		(4,362)
		Unsecured term loan, net				371,455		183,138
	Unsecured revolving credit facilities			1.51%		115,630		550,000
		Total, net			$	1,331,953	$	1,577,297

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Redeemable Partnership Units (Tables)

6 Months Ended

Jun. 30, 2016

Redeemable Partnership Units [Abstract]

Summary Of Activity Of Redeemable Partnership Units [Table Text Block]

Below is a table summarizing the activity of our redeemable partnership units.

(Amounts in thousands)
Balance at December 31, 2014	$	1,337,780
Net income		15,485
Other comprehensive loss		(2,635)
Distributions		(14,734)
Redemption of Class A units, at redemption value		(43,278)
Adjustments to carry redeemable Class A units at redemption value		(229,521)
Issuance of Series D-17 Preferred Units		4,427
Other, net		25,370
Balance at June 30, 2015	$	1,092,894
Balance at December 31, 2015	$	1,229,221
Net income		7,044
Other comprehensive income		1,685
Distributions		(15,763)
Redemption of Class A units, at redemption value		(18,208)
Adjustments to carry redeemable Class A units at redemption value		20,369
Other, net		21,149
Balance at June 30, 2016	$	1,245,497

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Accumulated Other Comprehensive Income ("AOCI") (Tables)

6 Months Ended

Jun. 30, 2016

Accumulated Other Comprehensive Income ("AOCI") [Abstract]

Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block]

The following tables set forth the changes in accumulated other comprehensive income by component.

(Amounts in thousands)				Securities		Pro rata share of		Interest
				available-		nonconsolidated		rate
		Total		for-sale		subsidiaries' OCI		swaps		Other
For the Three Months Ended June 30, 2016
Balance as of March 31, 2016		$	53,399	$	89,542	$	(9,313)	$	(23,563)	$	(3,267)
	OCI before reclassifications		19,157		28,019		(628)		(6,975)		(1,259)
	Amounts reclassified from AOCI		-		-		-		-		-
Net current period OCI			19,157		28,019		(628)		(6,975)		(1,259)
Balance as of June 30, 2016		$	72,556	$	117,561	$	(9,941)	$	(30,538)	$	(4,526)
For the Three Months Ended June 30, 2015
Balance as of March 31, 2015		$	72,609	$	112,442	$	(8,835)	$	(26,579)	$	(4,419)
	OCI before reclassifications		(21,996)		(25,000)		(1,191)		2,849		1,346
	Amounts reclassified from AOCI		-		-		-		-		-
Net current period OCI			(21,996)		(25,000)		(1,191)		2,849		1,346
Balance as of June 30, 2015		$	50,613	$	87,442	$	(10,026)	$	(23,730)	$	(3,073)
For the Six Months Ended June 30, 2016
Balance as of December 31, 2015		$	46,921	$	78,448	$	(9,319)	$	(19,368)	$	(2,840)
	OCI before reclassifications		25,635		39,113		(622)		(11,170)		(1,686)
	Amounts reclassified from AOCI		-		-		-		-		-
Net current period OCI			25,635		39,113		(622)		(11,170)		(1,686)
Balance as of June 30, 2016		$	72,556	$	117,561	$	(9,941)	$	(30,538)	$	(4,526)
For the Six Months Ended June 30, 2015
Balance as of December 31, 2014		$	93,267	$	133,774	$	(8,992)	$	(25,803)	$	(5,712)
	OCI before reclassifications		(42,654)		(46,332)		(1,034)		2,073		2,639
	Amounts reclassified from AOCI		-		-		-		-		-
Net current period OCI			(42,654)		(46,332)		(1,034)		2,073		2,639
Balance as of June 30, 2015		$	50,613	$	87,442	$	(10,026)	$	(23,730)	$	(3,073)

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Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2016

Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]

Schedule of Fair Values of Financial Assets and Liabilities by Levels [Table Text Block]

The tables below aggregate the fair values of these financial assets and liabilities by their levels in the fair value hierarchy as ofJune 30,2016 and December 31, 2015, respectively.

(Amounts in thousands)		As of June 30, 2016
		Total		Level 1		Level 2		Level 3
Marketable securities		$	194,489	$	194,489	$	-	$	-
Real estate fund investments			524,150		-		-		524,150
Deferred compensation plan assets (included in other assets)			119,292		59,152		-		60,140
	Total assets	$	837,931	$	253,641	$	-	$	584,290
Mandatorily redeemable instruments (included in other liabilities)		$	50,561	$	50,561	$	-	$	-
Interest rate swaps (included in other liabilities)			31,900		-		31,900		-
	Total liabilities	$	82,461	$	50,561	$	31,900	$	-
(Amounts in thousands)		As of December 31, 2015
		Total		Level 1		Level 2		Level 3
Marketable securities		$	150,997	$	150,997	$	-	$	-
Real estate fund investments			574,761		-		-		574,761
Deferred compensation plan assets (included in other assets)			117,475		58,289		-		59,186
	Total assets	$	843,233	$	209,286	$	-	$	633,947
Mandatorily redeemable instruments (included in other liabilities)		$	50,561	$	50,561	$	-	$	-
Interest rate swaps (included in other liabilities)			19,600		-		19,600		-
	Total liabilities	$	70,161	$	50,561	$	19,600	$	-

Schedule Of Carrying Amounts And Fair Values Of Financial Instruments [Table Text Block]

The table below summarizes the carrying amounts and fair value of these financial instruments as of June 30,2016 and December 31, 2015.

(Amounts in thousands)		As of June 30, 2016					As of December 31, 2015
		Carrying			Fair		Carrying			Fair
		Amount			Value		Amount			Value
Cash equivalents		$	1,134,521		$	1,135,000	$	1,295,980		$	1,296,000
Debt:
	Mortgages payable	$	9,853,333		$	9,277,000	$	9,614,838		$	9,306,000
	Senior unsecured notes		850,000			894,000		850,000			868,000
	Unsecured term loan		375,000			375,000		187,500			188,000
	Unsecured revolving credit facilities		115,630			116,000		550,000			550,000
	Total	$	11,193,963	(1)	$	10,662,000	$	11,202,338	(1)	$	10,912,000
(1)	Excludes $115,192 and $111,328 of deferred financing costs, net and other as of June 30, 2016 and December 31, 2015, respectively.

Real Estate Fund [Member]

Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]

Fair Value Inputs, Assets, Quantitative Information [Table Text Block]

Significant unobservable quantitative inputs in the table below were utilized in determining the fair value of these real estate fund investments at June 30,2016 and December 31, 2015.

				Weighted Average
		Range		(based on fair value of investments)
Unobservable Quantitative Input		June 30, 2016	December 31, 2015	June 30, 2016	December 31, 2015
	Discount rates	12.0% to 14.9%	12.0% to 14.9%	13.7%	13.6%
	Terminal capitalization rates	4.8% to 6.1%	4.8% to 6.1%	5.5%	5.5%

Summary of Changes in Level 3 Plan Assets [Table Text Block]

The table below summarizes the changes in the fair value of real estate fundinvestments that are classified as Level 3,for the three and six months endedJune 30,2016 and 2015.

(Amounts in thousands)	For the Three Months Ended June 30,				For the Six Months Ended June 30,
		2016		2015	2016		2015
Beginning balance	$	566,696	$	554,426	$	574,761	$	513,973
Purchases		-		-		-		95,000
Dispositions / distributions		(57,212)		(11,235)		(71,888)		(83,421)
Net unrealized gains		14,666		23,332		20,855		39,545
Net realized gains		-		886		422		2,312
Other, net		-		(1,433)		-		(1,433)
Ending balance	$	524,150	$	565,976	$	524,150	$	565,976

Deferred Compensation Plan Assets [Member]

Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]

Summary of Changes in Level 3 Plan Assets [Table Text Block]

The table below summarizes the changes in the fair value of deferred compensation plan assetsthat are classified as Level 3, for the three and six months endedJune 30,2016 and 2015.

(Amounts in thousands)	For the Three Months Ended June 30,				For the Six Months Ended June 30,
		2016		2015	2016		2015
Beginning balance	$	57,184	$	64,836	$	59,186	$	63,315
Purchases		1,106		5,607		2,272		6,231
Sales		(779)		(4,655)		(2,151)		(5,093)
Realized and unrealized gain		2,219		1,387		312		2,722
Other, net		410		493		521		493
Ending balance	$	60,140	$	67,668	$	60,140	$	67,668

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Fee and Other Income (Tables)

6 Months Ended

Jun. 30, 2016

Fee And Other Income Tables [Abstract]

Fee and Other Income (Table)

The following table sets forth the details of fee and other income:

(Amounts in thousands)	For the Three Months Ended June 30,				For the Six Months Ended June 30,
	2016		2015		2016		2015
BMS cleaning fees	$	18,794	$	21,741	$	36,940	$	44,374
Management and leasing fees		4,604		4,274		9,403		8,466
Lease termination fees		3,199		2,893		5,604		6,640
Other income		7,092		10,322		15,712		19,357
	$	33,689	$	39,230	$	67,659	$	78,837

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Interest and Other Investment Income, Net (Tables)

6 Months Ended

Jun. 30, 2016

Interest and Other Investment Income, Net [Abstract]

Interest And Other Investment Income, Net [Table Text Block]

The following table sets forth the details of interest and other investmentincome, net:

(Amounts in thousands)		For the Three Months Ended June 30,				For the Six Months Ended June 30,
		2016		2015		2016		2015
Dividends on marketable securities		$	3,230	$	3,202	$	6,445	$	6,405
Mark-to-market income (loss) of investments in
	our deferred compensation plan (1)		4,359		(609)		2,421		2,250
Interest on loans receivable			748		1,135		1,496		3,959
Other, net			1,899		1,938		3,392		3,844
		$	10,236	$	5,666	$	13,754	$	16,458
(1)	This income (loss) is entirely offset by the income (expense) resulting from the mark-to-market of the deferred compensation plan liability, which is included in "general and administrative" expense.

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Interest and Debt Expense (Tables)

6 Months Ended

Jun. 30, 2016

Interest and Debt Expense [Abstract]

Interest And Debt Expense [Table Text Block]

The following table sets forth the details of interest and debt expense:

(Amounts in thousands)	For the Three Months Ended June 30,				For the Six Months Ended June 30,
	2016		2015		2016		2015
Interest expense	$	104,435	$	96,297	$	204,730	$	191,625
Amortization of deferred financing costs		8,508		7,497		17,773		14,953
Capitalized interest and debt expense		(7,367)		(11,702)		(16,438)		(22,812)
	$	105,576	$	92,092	$	206,065	$	183,766

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Income Per Class A Unit (Tables)

6 Months Ended

Jun. 30, 2016

Income Per Share [Abstract]

Schedule Of Earnings Per Share Basic And Diluted [Text Block]

The following table provides a reconciliation of both net income and the number of Class A units used in the computation of (i) basic income per Class A unit - which includes the weighted average number of Class A units outstanding without regard to dilutive potential Class A units, and (ii) diluted income per Class A unit - which includes the weighted average Class A units and dilutive unit equivalents. Dilutive unit equivalents may include our Series A convertible preferred units, Vornado stock options and restricted unit awards.

(Amounts in thousands, except per unit amounts)			For the Three Months Ended				For the Six Months Ended
			June 30,				June 30,
			2016		2015		2016		2015
Numerator:
	Income from continuing operations, net of income
		attributable to noncontrolling interests	$	252,882	$	196,578	$	150,880	$	289,763
	Income (loss) from discontinued operations			2,475		(364)		3,191		15,815
	Net income attributable to Vornado Realty L.P.			255,357		196,214		154,071		305,578
	Preferred unit distributions			(20,412)		(20,414)		(40,824)		(39,910)
	Net income attributable to Class A unitholders			234,945		175,800		113,247		265,668
	Earnings allocated to unvested participating securities			(1,059)		(1,183)		(1,412)		(1,781)
	Numerator for basic income per Class A unit			233,886		174,617		111,835		263,887
	Impact of assumed conversions:
		Convertible preferred unit distributions		22		23		-		47
	Numerator for diluted income per Class A unit		$	233,908	$	174,640	$	111,835	$	263,934
Denominator:
	Denominator for basic income per Class A unit – weighted
		average units		200,369		199,038		200,220		198,857
	Effect of dilutive securities(1):
		Vornado stock options and restricted unit awards		1,564		1,750		1,601		1,930
		Convertible preferred units		42		45		-		46
	Denominator for diluted income per Class A unit – weighted
		average units and assumed conversions		201,975		200,833		201,821		200,833
INCOME PER CLASS A UNIT – BASIC:
	Income from continuing operations, net		$	1.16	$	0.88	$	0.54	$	1.25
	Income from discontinued operations, net			0.01		-		0.02		0.08
	Net income per Class A unit		$	1.17	$	0.88	$	0.56	$	1.33
INCOME PER CLASS A UNIT – DILUTED:
	Income from continuing operations, net		$	1.15	$	0.87	$	0.54	$	1.23
	Income from discontinued operations, net			0.01		-		0.01		0.08
	Net income per Class A unit		$	1.16	$	0.87	$	0.55	$	1.31
(1)	The effect of dilutive securities for the three months ended June 30, 2016 and 2015 excludes an aggregate of 187 and 148 weighted average Class A unit equivalents, respectively, and 231 and 151 weighted average Class A unit equivalents for the six months ended June 30, 2016 and 2015, respectively, as their effect was anti-dilutive.

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Segment Information (Tables)

6 Months Ended

Jun. 30, 2016

Segment Information [Abstract]

Schedule of Segment Information [Table Text Block]

Below is a summary of net income and a reconciliation of net income to EBITDA⁽¹⁾ by segment for the three and six months endedJune 30,2016 and 2015.

(Amounts in thousands)		For the Three Months Ended June 30, 2016
			Total		New York			Washington, DC			Other
Total revenues			$	621,708	$	425,770		$	127,468		$	68,470
Total expenses				434,894		268,135			89,106			77,653
Operating income (loss)				186,814		157,635			38,362			(9,183)
Income (loss) from partially owned entities				642		(1,001)			(2,958)			4,601
Income from real estate fund investments				16,389		-			-			16,389
Interest and other investment income, net				10,236		1,214			34			8,988
Interest and debt expense				(105,576)		(56,395)			(19,817)			(29,364)
Net gain on disposition of wholly owned and partially
	owned assets			159,511		159,511			-			-
Income (loss) before income taxes				268,016		260,964			15,621			(8,569)
Income tax expense				(2,109)		(816)			(318)			(975)
Income (loss) from continuing operations				265,907		260,148			15,303			(9,544)
Income from discontinued operations				2,475		-			-			2,475
Net income (loss)				268,382		260,148			15,303			(7,069)
Less net income attributable to noncontrolling interests in
	consolidated subsidiaries			(13,025)		(3,397)			-			(9,628)
Net income (loss) attributable to Vornado Realty L.P.				255,357		256,751			15,303			(16,697)
Interest and debt expense(2)				127,799		71,171			22,641			33,987
Depreciation and amortization(2)				173,352		111,314			39,305			22,733
Income tax expense(2)				4,704		889			2,205			1,610
EBITDA(1)			$	561,212	$	440,125	(3)	$	79,454	(4)	$	41,633	(5)

(Amounts in thousands)		For the Three Months Ended June 30, 2015
			Total		New York			Washington, DC			Other
Total revenues			$	616,288	$	414,262		$	134,856		$	67,170
Total expenses				422,897		250,298			98,661			73,938
Operating income (loss)				193,391		163,964			36,195			(6,768)
(Loss) income from partially owned entities				(5,641)		3,176			(1,805)			(7,012)
Income from real estate fund investments				26,368		-			-			26,368
Interest and other investment income, net				5,666		1,892			13			3,761
Interest and debt expense				(92,092)		(47,173)			(17,483)			(27,436)
Income (loss) before income taxes				127,692		121,859			16,920			(11,087)
Income tax benefit (expense)				88,072		(1,095)			(466)			89,633
Income from continuing operations				215,764		120,764			16,454			78,546
Loss from discontinued operations				(364)		-			-			(364)
Net income				215,400		120,764			16,454			78,182
Less net income attributable to noncontrolling interests in
	consolidated subsidiaries			(19,186)		(2,552)			-			(16,634)
Net income attributable to Vornado Realty L.P.				196,214		118,212			16,454			61,548
Interest and debt expense(2)				115,073		61,057			20,891			33,125
Depreciation and amortization(2)				163,245		95,567			47,803			19,875
Income tax (benefit) expense (2)				(87,653)		1,152			486			(89,291)
EBITDA(1)			$	386,879	$	275,988	(3)	$	85,634	(4)	$	25,257	(5)

(Amounts in thousands)		For the Six Months Ended June 30, 2016
			Total		New York			Washington, DC			Other
Total revenues			$	1,234,745	$	836,595		$	255,480		$	142,670
Total expenses				1,048,211		537,730			345,671			164,810
Operating income (loss)				186,534		298,865			(90,191)			(22,140)
(Loss) income from partially owned entities				(3,598)		(4,564)			(5,001)			5,967
Income from real estate fund investments				27,673		-			-			27,673
Interest and other investment income, net				13,754		2,329			92			11,333
Interest and debt expense				(206,065)		(110,981)			(35,752)			(59,332)
Net gain on disposition of wholly owned and partially
	owned assets			160,225		159,511			-			714
Income (loss) before income taxes				178,523		345,160			(130,852)			(35,785)
Income tax expense				(4,940)		(1,775)			(582)			(2,583)
Income (loss) from continuing operations				173,583		343,385			(131,434)			(38,368)
Income from discontinued operations				3,191		-			-			3,191
Net income (loss)				176,774		343,385			(131,434)			(35,177)
Less net income attributable to noncontrolling interests in
	consolidated subsidiaries			(22,703)		(6,826)			-			(15,877)
Net income (loss) attributable to Vornado Realty L.P.				154,071		336,559			(131,434)			(51,054)
Interest and debt expense(2)				253,919		142,369			42,047			69,503
Depreciation and amortization(2)				348,163		219,717			81,986			46,460
Income tax expense (2)				7,965		1,979			2,470			3,516
EBITDA(1)			$	764,118	$	700,624	(3)	$	(4,931)	(4)	$	68,425	(5)

(Amounts in thousands)		For the Six Months Ended June 30, 2015
		Total		New York			Washington, DC			Other
Total revenues		$	1,223,090	$	813,775		$	268,824		$	140,491
Total expenses			861,985		503,058			191,658			167,269
Operating income (loss)			361,105		310,717			77,166			(26,778)
Loss from partially owned entities			(8,384)		(2,487)			(1,674)			(4,223)
Income from real estate fund investments			50,457		-			-			50,457
Interest and other investment income, net			16,458		3,754			26			12,678
Interest and debt expense			(183,766)		(92,524)			(35,643)			(55,599)
Net gain on disposition of wholly owned and partially
	owned assets		1,860		-			-			1,860
Income (loss) before income taxes			237,730		219,460			39,875			(21,605)
Income tax benefit (expense)			87,101		(2,038)			208			88,931
Income from continuing operations			324,831		217,422			40,083			67,326
Income from discontinued operations			15,815		-			-			15,815
Net income			340,646		217,422			40,083			83,141
Less net income attributable to noncontrolling interests in
	consolidated subsidiaries		(35,068)		(4,058)			-			(31,010)
Net income attributable to Vornado Realty L.P.			305,578		213,364			40,083			52,131
Interest and debt expense(2)			229,748		119,724			42,403			67,621
Depreciation and amortization(2)			319,695		189,691			88,555			41,449
Income tax (benefit) expense(2)			(88,392)		2,154			(2,150)			(88,396)
EBITDA(1)		$	766,629	$	524,933	(3)	$	168,891	(4)	$	72,805	(5)
See notes on the following pages.

Notes to preceding tabular information:
(1)	EBITDA represents "Earnings Before Interest, Taxes, Depreciation and Amortization." We consider EBITDA a non-GAAP financial measure for making decisions and assessing the unlevered performance of our segments as it relates to the total return on assets as opposed to the levered return on equity. As properties are bought and sold based on a multiple of EBITDA, we utilize this measure to make investment decisions as well as to compare the performance of our assets to that of our peers. EBITDA should not be considered a substitute for net income. EBITDA may not be comparable to similarly titled measures employed by other companies.
(2)	Interest and debt expense, depreciation and amortization and income tax expense (benefit) in the reconciliation of net income (loss) to EBITDA includes our share of these items from partially owned entities.
(3)	The elements of "New York" EBITDA are summarized below.
	(Amounts in thousands)		For the Three Months Ended				For the Six Months Ended
			June 30,				June 30,
			2016		2015		2016		2015
	Office(a)		$	163,060	$	165,031	$	315,789	$	319,340
	Retail			95,615		86,151		188,938		167,456
	Residential			6,337		5,709		12,687		10,759
	Alexander's			11,805		10,241		23,374		20,648
	Hotel Pennsylvania			3,797		8,856		325		6,730
				280,614		275,988		541,113		524,933
	Gain on sale of 47% ownership interest
		in 7 West 34th Street		159,511		-		159,511		-
		Total New York	$	440,125	$	275,988	$	700,624	$	524,933
	(a)	The three and six months ended June 30, 2015 include $3,304 and $6,844, respectively, of EBITDA from 20 Broad Street which was sold in December 2015. Excluding these items, EBITDA was $161,727 and $312,496, respectively.
(4)	The elements of "Washington, DC" EBITDA are summarized below.
	(Amounts in thousands)		For the Three Months Ended				For the Six Months Ended
			June 30,				June 30,
			2016		2015		2016		2015
	Office, excluding the Skyline properties (a)		$	63,757	$	68,509	$	124,573	$	135,878
	Skyline properties			4,863		6,984		9,955		13,039
	Skyline properties impairment loss			-		-		(160,700)		-
		Total Office		68,620		75,493		(26,172)		148,917
	Residential			10,834		10,141		21,241		19,974
		Total Washington, DC	$	79,454	$	85,634	$	(4,931)	$	168,891
	(a)	The three and six months ended June 30, 2015 include $2,067 and $3,990, respectively, of EBITDA from 1750 Pennsylvania Avenue which was sold in September 2015. Excluding these items, EBITDA was $66,442 and $131,888, respectively.

Details of Other EBITDA [Table Text Block]

Notes to preceding tabular information - continued:
(5)	The elements of "Other" EBITDA are summarized below.
	(Amounts in thousands)		For the Three Months Ended				For the Six Months Ended
			June 30,				June 30,
			2016		2015		2016		2015
	Our share of real estate fund investments:
		Income before net realized/unrealized gains	$	1,526	$	2,671	$	3,757	$	4,285
		Net realized/unrealized gains on investments		3,890		4,916		5,451		10,464
		Carried interest		2,128		2,909		3,647		6,297
	Total			7,544		10,496		12,855		21,046
	theMART (including trade shows)			25,965		22,144		48,993		43,185
	555 California Street			12,117		12,831		23,732		25,232
	India real estate ventures			430		375		1,749		2,216
	Other investments			14,741		9,424		27,063		16,183
				60,797		55,270		114,392		107,862
	Corporate general and administrative expenses(a) (b)			(24,239)		(23,760)		(54,845)		(59,702)
	Investment income and other, net(a)			5,471		6,561		12,446		15,323
	Acquisition and transaction related costs			(2,879)		(4,061)		(7,486)		(6,042)
	UE and residual retail properties discontinued operations(c)			2,483		1,540		3,204		23,797
	Our share of impairment loss on India real estate ventures			-		(14,806)		-		(14,806)
	Our share of gains on sale of real estate of partially owned entities			-		4,513		-		4,513
	Net gain on sale of residential condominiums			-		-		714		1,860
			$	41,633	$	25,257	$	68,425	$	72,805
	(a)	The amounts in these captions (for this table only) exclude the results of the mark-to-market of our deferred compensation plan of $4,359 of income and $609 of loss for the three months ended June 30, 2016 and 2015, respectively, and $2,421 and $2,250 of income for the six months ended June 30, 2016 and 2015, respectively.
	(b)	The six months ended June 30, 2015 includes a cumulative catch up of $4,542 from the acceleration of recognition of compensation expense related to the modification of the 2012-2014 Out-Performance Plans.
	(c)	The three and six months ended June 30, 2015 include $327 and $22,972, respectively, of transaction costs related to the spin-off of our strip shopping centers and malls.

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Organization (Details)	6 Months Ended
	Jun. 30, 2016
Real Estate Properties [Line Items]
Common limited partnership interest in the Operating Partnership	93.60%

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Acquisitions (Narratives) (Details)	May 20, 2016 USD ($) ft²	Jun. 30, 2016 USD ($) Extensions	Dec. 31, 2015 USD ($)
Business Acquisition [Line Items]
Mortgages payable, net		$ 9,746,818,000	$ 9,513,713,000
Real Estate Fund Joint Venture [Member]
Business Acquisition [Line Items]
Equity method ownership percentage		75.30%
Houston Street [Member] | Joint Venture [Member]
Business Acquisition [Line Items]
Square Footage Of Real Estate Property | ft²	33,000
Business Acquisition Cost Of Acquired Entity	$ 19,650,000
Interest Rate, End of Period (in percentage)		3.47%
Equity method ownership percentage	50.00%
Estimated Development Cost	$ 104,000,000
Mortgages payable, net	$ 65,000,000	$ 22,100,000
Spread Over LIBOR (in percentage)	3.00%
Number Of Extensions Available | Extensions		2
Length Of Extension Available	1 year

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Real Estate Fund Investments (Narratives) (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2016 USD ($) Investments	Dec. 31, 2015 USD ($)
Investment Holdings [Line Items]
Aggregate fair value of Real Estate Fund investments (in US Dollars)	$ 524,150	$ 574,761
Real Estate Fund Joint Venture [Member]
Investment Holdings [Line Items]
Equity method ownership percentage	75.30%
Co Investment [Member]
Investment Holdings [Line Items]
Equity method ownership percentage	24.70%
Real Estate Fund [Member]
Investment Holdings [Line Items]
Aggregate fair value of Real Estate Fund investments (in US Dollars)	$ 524,150
Term of the Fund, years	8 years
Investment period for commitments of the Fund, years	3 years
Number Of Investments Held By Fund | Investments	6
Excess of fair value over cost	$ 215,215
Unfunded Commitments Of Real Estate Investments	117,907
Vornado Realty Trust [Member]
Investment Holdings [Line Items]
Unfunded Commitments Of Real Estate Investments	$ 34,522

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Real Estate Fund Investments (Details 1) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Details Of Income From Real Estate Funds [Abstract]
Income from real estate fund investments	$ 16,389	$ 26,368	$ 27,673	$ 50,457
Less income attributable to noncontrolling interests	(13,025)	(19,186)	(22,703)	(35,068)
Fee And Other Income	33,689	39,230	67,659	78,837
Real Estate Fund [Member]
Details Of Income From Real Estate Funds [Abstract]
Net investment income	1,723	2,150	6,396	8,600
Net realized gains on exited investments	0	886	14,676	25,591
Previously recorded unrealized gains on exited investments	0	0	(14,254)	(23,279)
Net unrealized gains on held investments	14,666	23,332	20,855	39,545
Income from real estate fund investments	16,389	26,368	27,673	50,457
Less income attributable to noncontrolling interests	(8,845)	(15,872)	(14,818)	(29,411)
Income from real estate fund investments attributable to Vornado Realty L.P.	7,544	10,496	12,855	21,046
Fee And Other Income	$ 935	$ 633	$ 1,695	$ 1,337

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Marketable Securities (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale Securities, Equity Securities	$ 194,489	$ 150,997
Available-for-sale Equity Securities, Amortized Cost Basis	76,928	72,549
Available-for-sale Securities, Gross Unrealized Gain	117,561	78,448
Lexington Realty Trust [Member]
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale Securities, Equity Securities	186,721	147,752
Available-for-sale Equity Securities, Amortized Cost Basis	72,549	72,549
Available-for-sale Securities, Gross Unrealized Gain	114,172	75,203
Other Equity Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale Securities, Equity Securities	7,768	3,245
Available-for-sale Equity Securities, Amortized Cost Basis	4,379	0
Available-for-sale Securities, Gross Unrealized Gain	$ 3,389	$ 3,245

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Investments in Partially Owned Entities (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015	Dec. 31, 2015
Equity Method Investments And Income From Equity Method Investments [Abstract]
Carrying amount of investments in partially owned entitiies	$ 1,499,792,000		$ 1,499,792,000		$ 1,550,422,000
Our share of Net Income (Loss)	642,000	$ (5,641,000)	(3,598,000)	$ (8,384,000)
Other liabilities	$ 480,030,000		$ 480,030,000		426,965,000
7 West 34th Street [Member]
Equity Method Investments And Income From Equity Method Investments [Abstract]
Equity method ownership percentage	53.00%		53.00%
Carrying amount of investments in partially owned entitiies					0
Deferred gain	$ 43,813,000		$ 43,813,000
Sale of ownership (percent)	47.00%		47.00%
Other liabilities	$ (43,160,000)		$ (43,160,000)
Alexanders Inc [Member]
Equity Method Investments And Income From Equity Method Investments [Abstract]
Equity method ownership percentage	32.40%		32.40%
Equity in net income or earnings	$ 6,812,000	5,447,000	$ 13,749,000	11,041,000
Management, leasing and development fees	1,688,000	1,876,000	3,413,000	3,973,000
Carrying amount of investments in partially owned entitiies	129,795,000		129,795,000		133,568,000
Our share of Net Income (Loss)	8,500,000	7,323,000	17,162,000	15,014,000
India real estate ventures [Member]
Equity Method Investments And Income From Equity Method Investments [Abstract]
Carrying amount of investments in partially owned entitiies	45,139,000		45,139,000		48,310,000
Our share of Net Income (Loss)	$ (1,934,000)	(16,567,000)	$ (2,620,000)	(16,676,000)
India real estate ventures [Member] | Minimum [Member]
Equity Method Investments And Income From Equity Method Investments [Abstract]
Equity method ownership percentage	4.10%		4.10%
India real estate ventures [Member] | Maximum [Member]
Equity Method Investments And Income From Equity Method Investments [Abstract]
Equity method ownership percentage	36.50%		36.50%
Partially owned office buildings [Member]
Equity Method Investments And Income From Equity Method Investments [Abstract]
Carrying amount of investments in partially owned entitiies	$ 811,984,000		$ 811,984,000		909,782,000
Our share of Net Income (Loss)	$ (12,462,000)	(3,238,000)	$ (26,711,000)	(12,534,000)
Urban Edge Properties [Member]
Equity Method Investments And Income From Equity Method Investments [Abstract]
Equity method ownership percentage	5.40%		5.40%
Equity in net income or earnings	$ 1,071,000	404,000	$ 1,947,000	404,000
Management, leasing and development fees	209,000	500,000	418,000	1,084,000
Carrying amount of investments in partially owned entitiies	23,868,000		23,868,000		25,351,000
Our share of Net Income (Loss)	$ 1,280,000	904,000	$ 2,365,000	1,488,000
PREIT Associates [Member]
Equity Method Investments And Income From Equity Method Investments [Abstract]
Equity method ownership percentage	8.00%		8.00%
Carrying amount of investments in partially owned entitiies	$ 125,822,000		$ 125,822,000		133,375,000
Our share of Net Income (Loss)	(527,000)	(364,000)	(4,815,000)	(364,000)
Other equity method investments [Member]
Equity Method Investments And Income From Equity Method Investments [Abstract]
Carrying amount of investments in partially owned entitiies	363,184,000		363,184,000		$ 300,036,000
Our share of Net Income (Loss)	$ 5,785,000	$ 6,301,000	$ 11,021,000	$ 4,688,000

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Investments in Partially Owned Entities (Alexander's Inc.) (Details) - Alexanders Inc [Member] $ / shares in Units, $ in Thousands	Jun. 30, 2016 USD ($) $ / shares shares
Equity Method Investments And Income From Equity Method Investments [Abstract]
Ownership common shares, investee (in shares) | shares	1,654,068
Equity method ownership percentage	32.40%
Closing share price (in dollars per share) | $ / shares	$ 409.23
Equity Method Investment Market Value	$ 676,894
Excess of investee's fair value over carrying amount	547,099
Excess of investee's carrying amount over equity in net assets	$ 39,786

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Investments in Partially Owned Entities (Urban Edge Properties and PREIT Associates L.P.) (Details) $ / shares in Units, $ in Thousands	6 Months Ended
	Jun. 30, 2016 USD ($) $ / shares shares
Pennsylvania Real Estate Investment Trust [Member]
Schedule Of Equity Method Investments [Line Items]
Operating Partnership Units Received From Buyer | shares	6,250,000
Equity method ownership percentage	8.00%
Closing share price (in dollars per share) | $ / shares	$ 21.45
Equity Method Investment fair Value	$ 134,063
Excess of investee's fair value over carrying amount	8,241
Excess of investee's carrying amount over equity in net assets	$ 64,712
Urban Edge Properties [Member]
Schedule Of Equity Method Investments [Line Items]
Operating Partnership Units Received From Buyer | shares	5,717,184
Equity method ownership percentage	5.40%
Closing share price (in dollars per share) | $ / shares	$ 29.86
Equity Method Investment fair Value	$ 170,715
Excess of investee's fair value over carrying amount	$ 146,847

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Investments in Partially Owned Entities (One Park, NY Mezzanine Loan) (Details) ft² in Thousands	Mar. 17, 2016 USD ($) Extensions	Mar. 07, 2016 USD ($) ft²	Jun. 30, 2016 USD ($)	Dec. 31, 2015 USD ($)
Schedule Of Equity Method Investments [Line Items]
Notes And Loans Payable			$ 9,746,818,000	$ 9,513,713,000
One Park Avenue [Member] | Joint Venture [Member]
Schedule Of Equity Method Investments [Line Items]
Equity method ownership percentage		55.00%
One Park Avenue [Member] | Joint Venture [Member] | Office Building [Member]
Schedule Of Equity Method Investments [Line Items]
Square Footage Of Real Estate Property | ft²		947
One Park Avenue [Member] | Joint Venture [Member] | Mortgage loan at 4.995% Matures 2016 [Member]
Schedule Of Equity Method Investments [Line Items]
Notes And Loans Payable		$ 250,000,000
Interest Rate, End of Period (in percentage)		4.995%
One Park Avenue [Member] | Joint Venture [Member] | Mortgage Loan at 2.19% Maturing March 2021 [Member]
Schedule Of Equity Method Investments [Line Items]
Notes And Loans Payable		$ 300,000,000
Interest Rate, End of Period (in percentage)			2.21%
One Park Avenue [Member] | Joint Venture [Member] | Mortgage Loan at 2.19% Maturing March 2021 [Member] | London Interbank Offered Rate (LIBOR) [Member]
Schedule Of Equity Method Investments [Line Items]
Spread Over LIBOR (in percentage)		1.75%
Mezzanine Loan New York [Member] | Vornado Realty Trust [Member]
Schedule Of Equity Method Investments [Line Items]
Our share of remaining commitment			$ 2,650,000
Mezzanine Loan New York [Member] | Joint Venture [Member]
Schedule Of Equity Method Investments [Line Items]
Equity method ownership percentage	33.30%
Notes And Loans Payable	$ 142,050,000
Remaining committment			7,950,000
Subordinated Debt			$ 350,000,000
Mezzanine Loan New York [Member] | Joint Venture [Member] | Mezzanine Loan Maturing November 2016 [Member]
Schedule Of Equity Method Investments [Line Items]
Number Of Extensions Available | Extensions	2
Length Of Extension Available	3 months
Interest Rate, End of Period (in percentage)			9.32%
Mezzanine Loan New York [Member] | Joint Venture [Member] | Mezzanine Loan Maturing November 2016 [Member] | London Interbank Offered Rate (LIBOR) [Member]
Schedule Of Equity Method Investments [Line Items]
Spread Over LIBOR (in percentage)	8.875%

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Investments in Partially Owned Entities (Warner Building,280 Park Avenue,7West 34th Street) (Details)					6 Months Ended
	May 27, 2016 USD ($)	May 16, 2016 USD ($) ft²	May 11, 2016 USD ($) ft² Extensions	May 06, 2016 USD ($) ft²	Jun. 30, 2016 USD ($)
Schedule Of Equity Method Investments [Line Items]
Notes And Loans Payable					$ 9,746,818,000
Net gain on sale					2,210,000
Gain on sale, recognized					160,225,000
The Warner Building [Member] | Mortgage Loan at 3.65% matures 2023
Schedule Of Equity Method Investments [Line Items]
Notes And Loans Payable					$ 293,000,000
Interest Rate, End of Period (in percentage)				3.65%	6.26%
Debt Instrument Maturity					May 2016
Fixed interest rate, duration				2 years
The Warner Building [Member] | Joint Venture [Member]
Schedule Of Equity Method Investments [Line Items]
Notes And Loans Payable				$ 273,000,000
Equity method ownership percentage				55.00%
Square Footage Of Real Estate Property | ft²				621,000
Debt amortization, duration				30 years
280 Park Avenue [Member] | Mortgage Loan at 2.45% matures 2019
Schedule Of Equity Method Investments [Line Items]
Interest Rate, End of Period (in percentage)			2.45%
Spread Over LIBOR (in percentage)			2.00%
Number Of Extensions Available | Extensions			4
Length Of Extension Available			1 year
Term of loan			3 years
280 Park Avenue [Member] | Joint Venture [Member]
Schedule Of Equity Method Investments [Line Items]
Notes And Loans Payable			$ 900,000,000		$ 721,000,000
Equity method ownership percentage			50.00%
Square Footage Of Real Estate Property | ft²			1,250,000
Interest Rate, End of Period (in percentage)					6.35%
Debt Instrument Maturity					Jun 2016
7 West 34th Street [Member]
Schedule Of Equity Method Investments [Line Items]
Equity method ownership percentage					53.00%
Deferred gain					$ 43,813,000
7 West 34th Street [Member] | Joint Venture [Member]
Schedule Of Equity Method Investments [Line Items]
Equity method ownership percentage	53.00%
Ownership sold, percentage	47.00%
Value of property	$ 561,000,000
Net proceeds from sale	127,382,000
Net gain on sale	203,324,000
Gain on sale, recognized	159,511,000
Deferred gain	43,813,000
Net gain, Total	$ 90,017,000
7 West 34th Street [Member] | Joint Venture [Member] | Mortgage Loan at 3.65% matures 2026
Schedule Of Equity Method Investments [Line Items]
Notes And Loans Payable		$ 300,000,000
Square Footage Of Real Estate Property | ft²		477,000
Interest Rate, End of Period (in percentage)		3.65%
Term of loan		10 years

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Dispositions (Details 1) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015	Dec. 31, 2015
Dispositions [Abstract]
Real Estate, Net	$ 3,111		$ 3,111		$ 29,561
Other Assets	5,567		5,567		7,459
Assets related to discontinued operations	8,678		8,678		37,020
Other Liabilities	8,104		8,104		12,470
Liabilities related to discontinued operations	8,104		8,104		$ 12,470
Income (loss) from discontinued operations:
Total revenues	947	$ 1,983	2,129	$ 22,279
Total expenses	682	2,020	1,148	15,393
Income (loss) from discontinued operations before gain on sale of real estate	265	(37)	981	6,886
Net gains on sale of real estate	2,210	0	2,210	10,867
UE spin off transaction related costs	0	(327)	0	(22,972)
Net gain on sale of lease position in Geary Street, CA	0	0	0	21,376
Impairment losses	0	0	0	(256)
Pretax income from discontinued operations	2,475	(364)	3,191	15,901
Income tax expense	0	0	0	(86)
Income (loss) from discontinued operations	2,475	(364)	3,191	15,815
Cash flows related to discontinued Operations:
Cash flows from operating activities			(4,685)	(35,738)
Cash flows from investing activities			0	310,069
Washington DC Segment [Member]
Income (loss) from discontinued operations:
Income (loss) from discontinued operations	0	0	0	0
New York Segment [Member]
Income (loss) from discontinued operations:
Income (loss) from discontinued operations	$ 0	$ 0	$ 0	$ 0

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Identified Intangible Assets and Liabilities (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015	Dec. 31, 2015
Finite-Lived Intangible Assets [Line Items]
Gross amount	$ 404,473		$ 404,473		$ 415,261
Accumulated amortization	(194,463)		(194,463)		(187,360)
Net	210,010		210,010		227,901
Gross amount	600,722		600,722		643,488
Accumulated amortization	(311,197)		(311,197)		(325,340)
Net	289,525		289,525		$ 318,148
Below Market Leases Net Of Above Market Leases [Member]
Finite-Lived Intangible Assets [Line Items]
Amortization of Intangible Assets	12,301	$ 13,378	29,808	$ 25,828
2017	45,361		45,361
2018	44,101		44,101
2019	31,937		31,937
2020	23,365		23,365
2021	18,287		18,287
Other Identified Intangible Assets [Member]
Finite-Lived Intangible Assets [Line Items]
Amortization of Intangible Assets	8,066	5,309	15,859	11,494
2017	24,795		24,795
2018	20,541		20,541
2019	16,202		16,202
2020	12,404		12,404
2021	11,032		11,032
Tenant Under Ground Leases [Member]
Finite-Lived Intangible Assets [Line Items]
Amortization of Intangible Assets	458	$ 458	916	$ 916
2017	1,832		1,832
2018	1,832		1,832
2019	1,832		1,832
2020	1,832		1,832
2021	$ 1,832		$ 1,832

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Debt (Narratives) (Details) ft² in Thousands		3 Months Ended		6 Months Ended
	Feb. 08, 2016 USD ($) ft²	Jun. 30, 2016 USD ($)	Mar. 31, 2016 USD ($)	Jun. 30, 2016 USD ($)	Jun. 30, 2015 USD ($)	Mar. 15, 2016 USD ($)	Dec. 31, 2015 USD ($)
Debt Instrument [Line Items]
Mortgages payable, net		$ 9,746,818,000		$ 9,746,818,000			$ 9,513,713,000
Net proceeds from borrowings				1,325,246,000	$ 1,746,460,000
Asset Impairment Charges				$ 160,700,000	$ 256,000
Skyline Properties [Member]
Debt Instrument [Line Items]
Asset Impairment Charges			$ 160,700,000
Capitalization rate				8.00%
Discount rates				8.20%
Weighted Average interest rate		4.51%	2.97%	4.51%
Default interest paid		$ 2,711,000
Skyline Properties [Member] | Mortgage Special Servicer [Member]
Debt Instrument [Line Items]
Mortgages payable, gross						$ 678,000,000
Secured Debt [Member] | 770 Broadway [Member]
Debt Instrument [Line Items]
Interest Rate, End of Period (in percentage)		2.21%		2.21%
Notes And Loans Payable Refinanced Amount (in US Dollars)	$ 700,000,000
Debt Instrument, Description of Variable Rate Basis	Libor
Square Footage Of Real Estate Property | ft²	1,158
Debt Term	5 years
Net proceeds from borrowings	$ 330,000,000
Secured Debt [Member] | 770 Broadway [Member] | London Interbank Offered Rate (LIBOR) [Member]
Debt Instrument [Line Items]
Spread Over LIBOR (in percentage)	1.75%
Secured Debt [Member] | 770 Broadway [Member] | Fixed Rate [Member]
Debt Instrument [Line Items]
Interest Rate, End of Period (in percentage)	2.56%
Debt Term	4 years 6 months
Secured Debt [Member] | 770 Broadway [Member] | Mortgage Maturing March 2016 [Member]
Debt Instrument [Line Items]
Interest Rate, End of Period (in percentage)	5.65%
Mortgages payable, net	$ 353,000,000

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Debt (Summary of Debt) (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Debt Instrument [Line Items]
Deferred financing costs, net and other	$ (115,192)	$ (111,328)
Total, net	9,746,818	9,513,713
Senior unsecured notes, net	844,868	844,159
Unsecured term loan, net	371,455	183,138
Unsecured revolving credit facilities	115,630	550,000
Unsecured Debt And Revolving Credit Facility	1,331,953	1,577,297
Mortgages Payable [Member]
Debt Instrument [Line Items]
Mortgages payable, gross	9,853,333	9,614,838
Deferred financing costs, net and other	(106,515)	(101,125)
Total, net	$ 9,746,818	9,513,713
Interest Rate, End of Period (in percentage)	3.54%
Mortgages Payable [Member] | Fixed Rate [Member]
Debt Instrument [Line Items]
Mortgages payable, gross	$ 6,571,398	6,356,634
Interest Rate, End of Period (in percentage)	4.17%
Mortgages Payable [Member] | Variable Rate [Member]
Debt Instrument [Line Items]
Mortgages payable, gross	$ 3,281,935	3,258,204
Interest Rate, End of Period (in percentage)	2.28%
Senior Unsecured Notes [Member]
Debt Instrument [Line Items]
Deferred financing costs, net and other	$ (5,132)	(5,841)
Unsecured debt, gross	$ 850,000	850,000
Interest Rate, End of Period (in percentage)	3.68%
Term Loan [Member]
Debt Instrument [Line Items]
Deferred financing costs, net and other	$ (3,545)	(4,362)
Unsecured debt, gross	$ 375,000	187,500
Interest Rate, End of Period (in percentage)	1.61%
Unsecured Revolving Credit Facilities [Member]
Debt Instrument [Line Items]
Unsecured revolving credit facilities	$ 115,630	$ 550,000
Interest Rate, End of Period (in percentage)	1.51%

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Redeemable Partnership Units (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Dec. 31, 2015
Redeemable Noncontrolling Interest Units Table [Abstract]
Redeemable Noncontrolling Interest, Equity, Common, Carrying Amount	$ 1,240,069		$ 1,223,793
Redeemable Noncontrolling Interests Rollforward [Abstract]
Reedemable Noncontrolling Interest, Balance At December 31	1,229,221	$ 1,337,780
Net income	7,044	15,485
Other comprehensive income (loss)	1,685	(2,635)
Distributions	(15,763)	(14,734)
Other, net	21,149	25,370
Reedemable Noncontrolling Interest, Balance At June 30	1,245,497	1,092,894
Common Class A [Member]
Redeemable Noncontrolling Interest Units Table [Abstract]
Redeemable Noncontrolling Interest, Equity, Common, Carrying Amount	1,240,069		1,223,793
Redeemable Noncontrolling Interests Rollforward [Abstract]
Redemption of Class A units, at redemption value	(18,208)	(43,278)
Adjustments to carry redeemable Class A units at redemption value	20,369	(229,521)
Series D17 Cumulative Redeemable Preferred Unit [Member]
Redeemable Noncontrolling Interests Rollforward [Abstract]
Issuance of Series D-17 Preferred Units		$ 4,427
Cumulative Redeemable Preferred Unit [Member]
Redeemable Noncontrolling Interests Additional Disclosure [Abstract]
Fair value of Series G convertible preferred units and Series D-13 cumulative redeemable preferred units	$ 50,561		$ 50,561

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Accumulated Other Comprehensive Income - ("AOCI") (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Accumulated other comprehensive income (loss), Beginning Balance	$ 53,399	$ 72,609	$ 46,921	$ 93,267
OCI before reclassifications	19,157	(21,996)	25,635	(42,654)
Amounts reclassified from AOCI	0	0	0	0
Net current period OCI	19,157	(21,996)	25,635	(42,654)
Accumulated other comprehensive income (loss), Ending Balance	72,556	50,613	72,556	50,613
Interest rate Swaps [Member]
Accumulated other comprehensive income (loss), Beginning Balance	(23,563)	(26,579)	(19,368)	(25,803)
OCI before reclassifications	(6,975)	2,849	(11,170)	2,073
Amounts reclassified from AOCI	0	0	0	0
Net current period OCI	(6,975)	2,849	(11,170)	2,073
Accumulated other comprehensive income (loss), Ending Balance	(30,538)	(23,730)	(30,538)	(23,730)
Securities available for sale [Member]
Accumulated other comprehensive income (loss), Beginning Balance	89,542	112,442	78,448	133,774
OCI before reclassifications	28,019	(25,000)	39,113	(46,332)
Amounts reclassified from AOCI	0	0	0	0
Net current period OCI	28,019	(25,000)	39,113	(46,332)
Accumulated other comprehensive income (loss), Ending Balance	117,561	87,442	117,561	87,442
Pro Rata Share Of Non Consolidated Subsidiaries Oci [Member]
Accumulated other comprehensive income (loss), Beginning Balance	(9,313)	(8,835)	(9,319)	(8,992)
OCI before reclassifications	(628)	(1,191)	(622)	(1,034)
Amounts reclassified from AOCI	0	0	0	0
Net current period OCI	(628)	(1,191)	(622)	(1,034)
Accumulated other comprehensive income (loss), Ending Balance	(9,941)	(10,026)	(9,941)	(10,026)
Other [Member]
Accumulated other comprehensive income (loss), Beginning Balance	(3,267)	(4,419)	(2,840)	(5,712)
OCI before reclassifications	(1,259)	1,346	(1,686)	2,639
Amounts reclassified from AOCI	0	0	0	0
Net current period OCI	(1,259)	1,346	(1,686)	2,639
Accumulated other comprehensive income (loss), Ending Balance	$ (4,526)	$ (3,073)	$ (4,526)	$ (3,073)

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Variable Interest Entities (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Non Consolidated Variable Interest Entities [Member]
Variable Interest Entity [Line Items]
Variable Interest Entity, Nonconsolidated, Carrying Amount, Assets	$ 394,866	$ 379,939

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Fair Value Measurements (Narratives) (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2016 USD ($) Investments	Dec. 31, 2015 USD ($)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Real estate fund investments	$ 524,150	$ 574,761
Real Estate Fund [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Number Of Investments Held By Fund | Investments	6
Real estate fund investments	$ 524,150
Excess of fair value over cost	$ 215,215
Real Estate Fund [Member] | Minimum [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value Measurement Anticipated Investment Holding Period	1 year
Real Estate Fund [Member] | Maximum [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value Measurement Anticipated Investment Holding Period	4 years 6 months

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Fair Value Measurements (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable Securities	$ 194,489	$ 150,997
Real estate fund investments	524,150	574,761
Fair Value, Measurements, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable Securities	194,489	150,997
Real estate fund investments	524,150	574,761
Deferred compensation plan assets (included in other assets)	119,292	117,475
Total assets	837,931	843,233
Mandatorily redeemable instruments (included in other liabilities)	50,561	50,561
Interest rate swaps (included in other liabilities)	31,900	19,600
Total liabilities	82,461	70,161
Fair Value, Inputs, Level 1 [Member] | Fair Value, Measurements, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable Securities	194,489	150,997
Real estate fund investments	0	0
Deferred compensation plan assets (included in other assets)	59,152	58,289
Total assets	253,641	209,286
Mandatorily redeemable instruments (included in other liabilities)	50,561	50,561
Interest rate swaps (included in other liabilities)	0	0
Total liabilities	50,561	50,561
Fair Value Inputs Level 2 Member | Fair Value, Measurements, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable Securities	0	0
Real estate fund investments	0	0
Deferred compensation plan assets (included in other assets)	0	0
Total assets	0	0
Mandatorily redeemable instruments (included in other liabilities)	0	0
Interest rate swaps (included in other liabilities)	31,900	19,600
Total liabilities	31,900	19,600
Fair Value, Inputs, Level 3 [Member] | Fair Value, Measurements, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable Securities	0	0
Real estate fund investments	524,150	574,761
Deferred compensation plan assets (included in other assets)	60,140	59,186
Total assets	584,290	633,947
Mandatorily redeemable instruments (included in other liabilities)	0	0
Interest rate swaps (included in other liabilities)	0	0
Total liabilities	$ 0	$ 0

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Fair Value Measurements (Details 1) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015	Dec. 31, 2015
Real Estate Fund [Member]
Unobservable Quantitative Input [Abstract]
Beginning balance	$ 566,696	$ 554,426	$ 574,761	$ 513,973	$ 513,973
Purchases	0	0	0	95,000
Sales/Dispositions/distributions	(57,212)	(11,235)	(71,888)	(83,421)
Net unrealized gains	14,666	23,332	20,855	39,545
Net realized gains	0	886	422	2,312
Other, net	0	(1,433)	0	(1,433)
Ending balance	524,150	565,976	$ 524,150	565,976	$ 574,761
Real Estate Fund [Member] | Minimum [Member]
Unobservable Quantitative Input [Abstract]
Discount rates			12.00%		12.00%
Capitalization rate			4.80%		4.80%
Real Estate Fund [Member] | Maximum [Member]
Unobservable Quantitative Input [Abstract]
Discount rates			14.90%		14.90%
Capitalization rate			6.10%		6.10%
Real Estate Fund [Member] | Weighted Average [Member]
Unobservable Quantitative Input [Abstract]
Discount rates			13.70%		13.60%
Capitalization rate			5.50%		5.50%
Deferred Compensation Plan Assets [Member]
Unobservable Quantitative Input [Abstract]
Beginning balance	57,184	64,836	$ 59,186	63,315	$ 63,315
Purchases	1,106	5,607	2,272	6,231
Sales/Dispositions/distributions	(779)	(4,655)	(2,151)	(5,093)
Realized and unrealized gain	2,219	1,387	312	2,722
Other, net	410	493	521	493
Ending balance	$ 60,140	$ 67,668	$ 60,140	$ 67,668	$ 59,186

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Fair Value Measurements (Details 2) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Unsecured Debt, Total	$ 844,868	$ 844,159
Deferred financing costs, net and other	115,192	111,328
Senior Unsecured Notes [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Senior unsecured notes	850,000	850,000
Deferred financing costs, net and other	5,132	5,841
Unsecured Term Loan [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Senior unsecured notes	375,000	187,500
Deferred financing costs, net and other	3,545	4,362
Carrying (Reported) Amount, Fair Value Disclosure [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash equivalents	1,134,521	1,295,980
Mortgages payable, gross	9,853,333	9,614,838
Unsecured revolving credit facilities	115,630	550,000
Total debt	11,193,963	11,202,338
Carrying (Reported) Amount, Fair Value Disclosure [Member] | Senior Unsecured Notes [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Unsecured Debt, Total	850,000	850,000
Carrying (Reported) Amount, Fair Value Disclosure [Member] | Unsecured Term Loan [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Senior unsecured notes	375,000	187,500
Estimate of Fair Value, Fair Value Disclosure [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash equivalents	1,135,000	1,296,000
Mortgages payable, gross	9,277,000	9,306,000
Unsecured revolving credit facilities	116,000	550,000
Total debt	10,662,000	10,912,000
Estimate of Fair Value, Fair Value Disclosure [Member] | Senior Unsecured Notes [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Unsecured Debt, Total	894,000	868,000
Estimate of Fair Value, Fair Value Disclosure [Member] | Unsecured Term Loan [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Senior unsecured notes	$ 375,000	$ 188,000

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Incentive Compensation Narrative (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Share Based Compensation Expense	$ 7,215	$ 6,685	$ 21,786	$ 26,827

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Fee and Other Income (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Fee And Other Income [Line Items]
BMS cleaning fees	$ 18,794	$ 21,741	$ 36,940	$ 44,374
Management and leasing fees	4,604	4,274	9,403	8,466
Lease termination fees	3,199	2,893	5,604	6,640
Other income	7,092	10,322	15,712	19,357
Fee and other income	33,689	39,230	67,659	78,837
Interstate Properties [Member]
Fee And Other Income [Line Items]
Management and leasing fees	$ 128	$ 132	$ 262	$ 271

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Interest and Other Investment Income, Net (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Interest and Other Investment Income, Net [Abstract]
Dividends on marketable securities	$ 3,230	$ 3,202	$ 6,445	$ 6,405
Mark-to-market income (loss) of investments in our deferred compensation plan	4,359	(609)	2,421	2,250
Interest on loans receivable	748	1,135	1,496	3,959
Other, net	1,899	1,938	3,392	3,844
Interest and other investment income, net	$ 10,236	$ 5,666	$ 13,754	$ 16,458

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Interest and Debt Expense (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Interest and Debt Expense [Abstract]
Interest expense	$ 104,435	$ 96,297	$ 204,730	$ 191,625
Amortization of deferred financing costs	8,508	7,497	17,773	14,953
Capitalized interest and debt expense	(7,367)	(11,702)	(16,438)	(22,812)
Interest and Debt Expense, Total	$ 105,576	$ 92,092	$ 206,065	$ 183,766

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Income Per Class A Unit (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Income Per Share [Abstract]
Income from continuing operations, net of income attributable to noncontrolling interests	$ 252,882	$ 196,578	$ 150,880	$ 289,763
Income (loss) from discontinued operations	2,475	(364)	3,191	15,815
Net income attributable to Vornado Realty L.P.	255,357	196,214	154,071	305,578
Preferred unit distributions	(20,412)	(20,414)	(40,824)	(39,910)
Net income attributable to Class A unitholders	234,945	175,800	113,247	265,668
Earnings allocated to unvested participating securities	(1,059)	(1,183)	(1,412)	(1,781)
Numerator for basic income per Class A unit	233,886	174,617	111,835	263,887
Convertible preferred unit distributions	22	23	0	47
Numerator for diluted income per Class A unit	$ 233,908	$ 174,640	$ 111,835	$ 263,934
Denominator for basic income per Class A unit - weighted average units (in shares)	200,369	199,038	200,220	198,857
Effect of dilutive securities - Vornado stock options and restricted unit awards (in Units)	1,564	1,750	1,601	1,930
Effect of dilutive securities - Convertible preferred units (in Units)	42	45	0	46
Denominator for diluted income per Class A unit - weighted average units and assumed conversions (in shares)	201,975	200,833	201,821	200,833
INCOME PER CLASS A UNIT - BASIC:
Income from continuing operations, net (in dollars per share)	$ 1.16	$ 0.88	$ 0.54	$ 1.25
Income from discontinued operations, net (in dollars per share)	0.01	0	0.02	0.08
Net income per Class A unit (in dollars per share)	1.17	0.88	0.56	1.33
INCOME PER CLASS A UNIT - DILUTED:
Income from continuing operations, net (in dollars per share)	1.15	0.87	0.54	1.23
Income from discontinued operations, net (in dollars per share)	0.01	0	0.01	0.08
Net income per Class A unit (in dollars per share)	$ 1.16	$ 0.87	$ 0.55	$ 1.31

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Income Per Class A Unit (Parentheticals) (Details) - shares shares in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Income Per Share [Abstract]
Weighted average Class A Unit equivalents of excluded dilutive securities due to anti-dilutive effect	187	148	231	151

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Commitments and Contingencies (Details)	6 Months Ended
	Jun. 30, 2016 USD ($)
Loss Contingencies [Line Items]
Guarantees and master leases	$ 857,000,000
Outstanding letters of credit	38,576,000
Commitment To Fund Additional Capital To Partially Owned Entities	70,000,000
Construction Committment	721,173,000
NBCR Losses [Member]
Loss Contingencies [Line Items]
Insurance limit per occurrence	2,000,000,000
Insurance Limit Aggregate Value	$ 2,000,000,000
Federal government deductible, percentage of balance of a covered loss	84.00%
Earthquake California Properties [Member]
Loss Contingencies [Line Items]
Insurance limit per occurrence	$ 180,000,000
Vornado deductible, percentage of property value	5.00%
All Risk And Rental Value [Member]
Loss Contingencies [Line Items]
Insurance limit per occurrence	$ 2,000,000,000
General Liability [Member]
Loss Contingencies [Line Items]
Insurance limit per occurrence	300,000,000
Insurance Limit Per Property	300,000,000
Terrorism Acts [Member]
Loss Contingencies [Line Items]
Insurance limit per occurrence	$ 4,000,000,000
Insurance Coverage End Date	December 2020
Insurance Limit Aggregate Value	$ 4,000,000,000
PPIC [Member] | NBCR Losses [Member]
Loss Contingencies [Line Items]
Insurance deductible	$ 2,400,000
Insurance Deductible Percentage Of Balance Of Covered Loss	16.00%

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Segment Information (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Segment Information [Line Items]
Total revenues	$ 621,708	$ 616,288	$ 1,234,745	$ 1,223,090
Total expenses	434,894	422,897	1,048,211	861,985
Operating income	186,814	193,391	186,534	361,105
Income (loss) from partially owned entities	642	(5,641)	(3,598)	(8,384)
Income from real estate fund investments	16,389	26,368	27,673	50,457
Interest and other investment income, net	10,236	5,666	13,754	16,458
Interest and debt expense	(105,576)	(92,092)	(206,065)	(183,766)
Net gain on disposition of wholly owned and partially owned assets	159,511	0	160,225	1,860
Income (loss) before income taxes	268,016	127,692	178,523	237,730
Income tax expense	(2,109)	88,072	(4,940)	87,101
Income (loss) from continuing operations	265,907	215,764	173,583	324,831
Income (loss) from discontinued operations	2,475	(364)	3,191	15,815
Net income	268,382	215,400	176,774	340,646
Less net income attributable to noncontrolling interests in consolidated subsidiaries	(13,025)	(19,186)	(22,703)	(35,068)
Net income attributable to Vornado Realty L.P.	255,357	196,214	154,071	305,578
Interest and debt expense	127,799	115,073	253,919	229,748
Depreciation and amortization	173,352	163,245	348,163	319,695
Income tax (benefit) expense	4,704	(87,653)	7,965	(88,392)
EBITDA	561,212	386,879	764,118	766,629
New York Segment [Member]
Segment Information [Line Items]
Total revenues	425,770	414,262	836,595	813,775
Total expenses	268,135	250,298	537,730	503,058
Operating income	157,635	163,964	298,865	310,717
Income (loss) from partially owned entities	(1,001)	3,176	(4,564)	(2,487)
Income from real estate fund investments	0	0	0	0
Interest and other investment income, net	1,214	1,892	2,329	3,754
Interest and debt expense	(56,395)	(47,173)	(110,981)	(92,524)
Net gain on disposition of wholly owned and partially owned assets	159,511		159,511	0
Income (loss) before income taxes	260,964	121,859	345,160	219,460
Income tax expense	(816)	(1,095)	(1,775)	(2,038)
Income (loss) from continuing operations	260,148	120,764	343,385	217,422
Income (loss) from discontinued operations	0	0	0	0
Net income	260,148	120,764	343,385	217,422
Less net income attributable to noncontrolling interests in consolidated subsidiaries	(3,397)	(2,552)	(6,826)	(4,058)
Net income attributable to Vornado Realty L.P.	256,751	118,212	336,559	213,364
Interest and debt expense	71,171	61,057	142,369	119,724
Depreciation and amortization	111,314	95,567	219,717	189,691
Income tax (benefit) expense	889	1,152	1,979	2,154
EBITDA	440,125	275,988	700,624	524,933
Washington DC Segment [Member]
Segment Information [Line Items]
Total revenues	127,468	134,856	255,480	268,824
Total expenses	89,106	98,661	345,671	191,658
Operating income	38,362	36,195	(90,191)	77,166
Income (loss) from partially owned entities	(2,958)	(1,805)	(5,001)	(1,674)
Income from real estate fund investments	0	0	0	0
Interest and other investment income, net	34	13	92	26
Interest and debt expense	(19,817)	(17,483)	(35,752)	(35,643)
Net gain on disposition of wholly owned and partially owned assets	0		0	0
Income (loss) before income taxes	15,621	16,920	(130,852)	39,875
Income tax expense	(318)	(466)	(582)	208
Income (loss) from continuing operations	15,303	16,454	(131,434)	40,083
Income (loss) from discontinued operations	0	0	0	0
Net income	15,303	16,454	(131,434)	40,083
Less net income attributable to noncontrolling interests in consolidated subsidiaries	0	0	0	0
Net income attributable to Vornado Realty L.P.	15,303	16,454	(131,434)	40,083
Interest and debt expense	22,641	20,891	42,047	42,403
Depreciation and amortization	39,305	47,803	81,986	88,555
Income tax (benefit) expense	2,205	486	2,470	(2,150)
EBITDA	79,454	85,634	(4,931)	168,891
Other Segment [Member]
Segment Information [Line Items]
Total revenues	68,470	67,170	142,670	140,491
Total expenses	77,653	73,938	164,810	167,269
Operating income	(9,183)	(6,768)	(22,140)	(26,778)
Income (loss) from partially owned entities	4,601	(7,012)	5,967	(4,223)
Income from real estate fund investments	16,389	26,368	27,673	50,457
Interest and other investment income, net	8,988	3,761	11,333	12,678
Interest and debt expense	(29,364)	(27,436)	(59,332)	(55,599)
Net gain on disposition of wholly owned and partially owned assets	0		714	1,860
Income (loss) before income taxes	(8,569)	(11,087)	(35,785)	(21,605)
Income tax expense	(975)	89,633	(2,583)	88,931
Income (loss) from continuing operations	(9,544)	78,546	(38,368)	67,326
Income (loss) from discontinued operations	2,475	(364)	3,191	15,815
Net income	(7,069)	78,182	(35,177)	83,141
Less net income attributable to noncontrolling interests in consolidated subsidiaries	(9,628)	(16,634)	(15,877)	(31,010)
Net income attributable to Vornado Realty L.P.	(16,697)	61,548	(51,054)	52,131
Interest and debt expense	33,987	33,125	69,503	67,621
Depreciation and amortization	22,733	19,875	46,460	41,449
Income tax (benefit) expense	1,610	(89,291)	3,516	(88,396)
EBITDA	$ 41,633	$ 25,257	$ 68,425	$ 72,805

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Segment Information (Parentheticals) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Segment Information [Line Items]
Earnings Before Interest, Taxes, Depreciation, and Amortization	$ 561,212	$ 386,879	$ 764,118	$ 766,629
Mark-to-market income (loss) of investments in our deferred compensation plan	4,359	(609)	2,421	2,250
Additional Expense From Acceleration Of Vesting				4,542
Transaction Costs Spin Off	0	327	0	22,972
New York Segment [Member]
Segment Information [Line Items]
Earnings Before Interest, Taxes, Depreciation, and Amortization	440,125	275,988	700,624	524,933
New York Segment [Member] | Alexanders Inc [Member]
Segment Information [Line Items]
Earnings Before Interest, Taxes, Depreciation, and Amortization	11,805	10,241	23,374	20,648
New York Segment [Member] | Hotel Pennsylvania [Member]
Segment Information [Line Items]
Earnings Before Interest, Taxes, Depreciation, and Amortization	3,797	8,856	325	6,730
New York Segment [Member] | Residential Properties [Member]
Segment Information [Line Items]
Earnings Before Interest, Taxes, Depreciation, and Amortization	6,337	5,709	12,687	10,759
New York Segment [Member] | Retail Properties [Member]
Segment Information [Line Items]
Earnings Before Interest, Taxes, Depreciation, and Amortization	95,615	86,151	188,938	167,456
New York Segment [Member] | Office [Member]
Segment Information [Line Items]
Earnings Before Interest, Taxes, Depreciation, and Amortization	163,060	165,031	315,789	319,340
New York Segment [Member] | 20 Broad Street [Member]
Segment Information [Line Items]
Earnings Before Interest, Taxes, Depreciation, and Amortization		3,304		6,844
New York Segment [Member] | 20 Broad Street [Member] | Operating Segments [Member]
Segment Information [Line Items]
Earnings Before Interest, Taxes, Depreciation, and Amortization		161,727
New York Segment [Member] | New York Segment Excluding 20 Broad Street [Member] | Operating Segments [Member]
Segment Information [Line Items]
Earnings Before Interest, Taxes, Depreciation, and Amortization				312,496
New York Segment [Member] | Net gain on sale of 7 west 34th street
Segment Information [Line Items]
Earnings Before Interest, Taxes, Depreciation, and Amortization	159,511	0	159,511	0
New York Segment [Member] | Total
Segment Information [Line Items]
Earnings Before Interest, Taxes, Depreciation, and Amortization	280,614	275,988	541,113	524,933
Washington DC Segment [Member]
Segment Information [Line Items]
Earnings Before Interest, Taxes, Depreciation, and Amortization	79,454	85,634	(4,931)	168,891
Washington DC Segment [Member] | Washington Dc Office Excluding Skyline Properties [Member]
Segment Information [Line Items]
Earnings Before Interest, Taxes, Depreciation, and Amortization	63,757	68,509	124,573	135,878
Washington DC Segment [Member] | Skyline Properties [Member]
Segment Information [Line Items]
Earnings Before Interest, Taxes, Depreciation, and Amortization	4,863	6,984	9,955	13,039
Washington DC Segment [Member] | Skyline Properties [Member] | Impairment Loss [Member]
Segment Information [Line Items]
Earnings Before Interest, Taxes, Depreciation, and Amortization	0	0	(160,700)	0
Washington DC Segment [Member] | Residential Properties [Member]
Segment Information [Line Items]
Earnings Before Interest, Taxes, Depreciation, and Amortization	10,834	10,141	21,241	19,974
Washington DC Segment [Member] | Office [Member]
Segment Information [Line Items]
Earnings Before Interest, Taxes, Depreciation, and Amortization	68,620	75,493	(26,172)	148,917
Washington DC Segment [Member] | 1750 Pennsylvania Avenue [Member]
Segment Information [Line Items]
Earnings Before Interest, Taxes, Depreciation, and Amortization		2,067		3,990
Washington DC Segment [Member] | 1750 Pennsylvania Avenue [Member] | Operating Segments [Member]
Segment Information [Line Items]
Earnings Before Interest, Taxes, Depreciation, and Amortization		66,442		131,888
Other Segment [Member]
Segment Information [Line Items]
Earnings Before Interest, Taxes, Depreciation, and Amortization	41,633	25,257	68,425	72,805
Other Segment [Member] | Real Estate Fund Investment [Member]
Segment Information [Line Items]
Earnings Before Interest, Taxes, Depreciation, and Amortization	7,544	10,496	12,855	21,046
Other Segment [Member] | The Mart (including trade shows) [Member]
Segment Information [Line Items]
Earnings Before Interest, Taxes, Depreciation, and Amortization	25,965	22,144	48,993	43,185
Other Segment [Member] | 555 California Street [Member]
Segment Information [Line Items]
Earnings Before Interest, Taxes, Depreciation, and Amortization	12,117	12,831	23,732	25,232
Other Segment [Member] | India real estate ventures [Member]
Segment Information [Line Items]
Earnings Before Interest, Taxes, Depreciation, and Amortization	430	375	1,749	2,216
Other Segment [Member] | Other Investments [Member]
Segment Information [Line Items]
Earnings Before Interest, Taxes, Depreciation, and Amortization	14,741	9,424	27,063	16,183
Other Segment [Member] | Corporate General And Administrative Expenses [Member]
Segment Information [Line Items]
Earnings Before Interest, Taxes, Depreciation, and Amortization	(24,239)	(23,760)	(54,845)	(59,702)
Other Segment [Member] | Investment Income and other, net [Member]
Segment Information [Line Items]
Earnings Before Interest, Taxes, Depreciation, and Amortization	5,471	6,561	12,446	15,323
Other Segment [Member] | Our share of impairment loss on India real estate ventures [Member]
Segment Information [Line Items]
Earnings Before Interest, Taxes, Depreciation, and Amortization		(14,806)		(14,806)
Other Segment [Member] | UE and residual retail properties discontinued operations [Member]
Segment Information [Line Items]
Earnings Before Interest, Taxes, Depreciation, and Amortization	2,483	1,540	3,204	23,797
Other Segment [Member] | Acquisition and transaction related costs [Member]
Segment Information [Line Items]
Earnings Before Interest, Taxes, Depreciation, and Amortization	(2,879)	(4,061)	(7,486)	(6,042)
Other Segment [Member] | Net gain on sale of residential condominiums [Member]
Segment Information [Line Items]
Earnings Before Interest, Taxes, Depreciation, and Amortization	0	0	714	1,860
Other Segment [Member] | Our share of gains on sale of real estate [Member]
Segment Information [Line Items]
Earnings Before Interest, Taxes, Depreciation, and Amortization		4,513		4,513
Other Segment [Member] | Other EBITDA attributable to identifiable investments [Member]
Segment Information [Line Items]
Earnings Before Interest, Taxes, Depreciation, and Amortization	60,797	55,270	114,392	107,862
Other Segment [Member] | Income before net realized/unrealized gains [Member] | Real Estate Fund Investment [Member]
Segment Information [Line Items]
Earnings Before Interest, Taxes, Depreciation, and Amortization	1,526	2,671	3,757	4,285
Other Segment [Member] | Net unrealized/realized gains on investments [Member] | Real Estate Fund Investment [Member]
Segment Information [Line Items]
Earnings Before Interest, Taxes, Depreciation, and Amortization	3,890	4,916	5,451	10,464
Other Segment [Member] | Carried Interest [Member] | Real Estate Fund Investment [Member]
Segment Information [Line Items]
Earnings Before Interest, Taxes, Depreciation, and Amortization	$ 2,128	$ 2,909	$ 3,647	$ 6,297

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Subsequent Events (Details 1) - Subsequent Event [Member] $ / shares in Units, $ in Thousands	Aug. 01, 2016 USD ($) $ / shares
Series J Preferred Stock [Member]
Subsequent Events [Line Items]
Dividend Percentage	6.875%
Redemption Price Per Share | $ / shares	$ 25
Redemption Price Aggregate | $	$ 246,250
Series J Cumulative Redeemable Preferred Units [Member]
Subsequent Events [Line Items]
Dividend Percentage	6.875%