DOW JONES NEWSWIRES Vornado Realty Trust (VNO) fourth-quarter earnings fell 66% as retailer J.C. Penney Co. (JCP) contributed less to the commercial-property owner's funds from operations. Earnings results have been mixed for the real-estate investment trust, which owns and manages commercial properties around New York and the District of Columbia, markets that have remained strong over the past few years. At the same time, the REIT's diversified holdings in companies like Penney and Toys "R" Us have yielded varying returns. The latest result reflected $40.1 million in income from the property owner's derivative position in J.C. Penney, compared with $97.9 million a year earlier. The year-ago result also included a $93.9 million debt-extinguishment gain. J.C. Penney Co. recently swung to a loss in its fiscal fourth quarter as the retailer shouldered heavy costs tied to its revamped pricing strategy. Vornado holds a 8.7% stake in J.C. Penney, according to FactSet Research. Vornado reported a profit of $87.3 million, down from $257 million a year earlier. On a per-share basis, which includes the impact of preferred dividends, earnings fell to 37 cents from $1.31. FFO fell to $1.46 a share from $2.27. Revenue climbed 5.6% to $741.8 million. Analysts polled by Thomson Reuters expected a 44-cent profit with FFO at $1.24 a share. Vornado shares were off 11 cents at $84.10 after hours. The stock has declined 6.4% over the past year. -By Drew FitzGerald, Dow Jones Newswires; 212-416-2909; Andrew.FitzGerald@dowjones.com
