(RTTNews) - Vornado Realty Trust (VNO: News ), which owns office and retail properties, said Tuesday that its third quarter funds from operations rose from last year, helped by lower expenses.

The real estate investment trust's net income for the third quarter was $140.6 million, compared to $37.0 million for the year-ago quarter.

Net income attributable to common shareholders for the third quarter was $126.3 million or $0.69 per diluted share, compared to $22.7 million, or $0.14 per share in the prior year quarter.

FFO attributable to common shareholders plus assumed conversions was $234.2 million or $1.25 per share in the third quarter, compared to $159.8 million or $0.97 per share in the third quarter of last year.

Excluding items, adjusted FFO for the third quarter was $221.4 million or $1.18 per share, compared to $193.3 million or $1.17 per share a year earlier.

On average, 8 analysts polled by Thomson Reuters expected the company to report FFO of $1.17 per share for the third quarter. Analysts' estimates typically exclude special items.

Revenue for the third quarter declined to $671.22 million from $676.07 million in the same quarter last year.

For the nine months, the company's net income was $243.1 million, compared to $572 million for the same period last year.

Net income attributable to common shareholders for the nine-month period was $200.3 million or $1.16 per share, compared to $529.2 million or $3.22 per share in the prior year period.
FFO for the nine-month period was $602.8 million or $3.37 per share, compared to $894.8 million or $5.27 per share in the corresponding year-ago period.

Adjusted FFO for the nine-month period was $698.9 million or $3.90 per share, compared to $672.6 million or $3.96 per share in the same period last year.

Revenue for the nine-month period increased to $2.02 billion from $2.00 billion in the prior year period.

Vornado said Monday that it has commenced cash tender offers for any and all of its $886.97 million principal amount of outstanding 3.625% convertible senior debentures due 2026 and its $1.13 billion principal amount of outstanding 2.85% convertible senior debentures due 2027.

Vornado plans to pay for all of the securities purchased pursuant to the tender offers from available cash. The tender offers will each expire at 12:00 midnight, New York City time, on December 1, unless extended.

Among others in the industry, Boston Properties Inc. (BXP) last week said its third quarter FFO increased from last year, helped by higher revenues, and lower expenses. Looking ahead, the company provided its outlook for the fourth quarter and fiscal 2010, both of which are indicated to fall short of the Street consensus.

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