Vornado Capital Partners Real Estate Fund (the "Fund")

3 Months Ended

Mar. 31, 2014

Vornado Capital Partners Real Estate Fund (the "Fund")

4. Vornado Capital Partners Real Estate Fund (the “Fund”)

We are the general partner and investment manager of the Fund. The Fund is accounted for under the AICPA Investment Company Guide 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.

At March 31, 2014, the Fund had nine investments with an aggregate fair value of $682,002,000, or $167,582,000 in excess of cost, and had remaining unfunded commitments of $149,186,000, of which our share was $37,297,000. Below is a summary of income from the Fund for the three months ended March 31, 2014 and 2013.

		For the Three Months
(Amounts in thousands)		Ended March 31,
		2014		2013
Net investment income		$	3,979	$	3,048
Net unrealized gains			14,169		13,516
Income from Real Estate Fund			18,148		16,564
Less (income) attributable to noncontrolling interests			(10,849)		(9,540)
Income from Real Estate Fund attributable to Vornado ⁽¹⁾		$	7,299	$	7,024
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(1)	Excludes management, leasing and development fees of $704 and $849 for the three months ended March 31, 2014 and 2013, respectively, which are included as a component of "fee and other income" on our consolidated statements of income.