Real Estate Fund Investments

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

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

On September 29, 2017, the Fund completed the sale of 800 Corporate Pointe in Culver City, CA for $148,000,000. From the inception of this investment through its disposition, the Fund realized a $35,620,000 net gain.

As of September 30, 2017, we had five real estate fund investments through the Fund and the Crowne Plaza Joint Venture with an aggregate fair value of $351,750,000, or $95,136,000 in excess of cost, and had remaining unfunded commitments of $117,872,000, of which our share was $34,502,000. Below is a summary of income from the Fund and the Crowne Plaza Joint Venture for the three and nine months ended September 30, 2017 and 2016.



(Amounts in thousands)	For the Three Months Ended September 30,						For the Nine Months Ended September 30,
	2017			2016			2017			2016
Net investment income	$	6,028		$	5,841		$	16,888		$	12,237
Net realized gains on exited investments	35,620			—			35,861			14,676
Previously recorded unrealized gains on exited investment	(36,736		)	—			(25,538		)	(14,254		)
Net unrealized (loss) gain on held investments	(11,220		)	(4,764		)	(28,860		)	16,091
(Loss) income from real estate fund investments	(6,308		)	1,077			(1,649		)	28,750
Less income attributable to noncontrolling interests in consolidated subsidiaries	(1,486		)	(270		)	(9,684		)	(15,088		)
(Loss) income from real estate fund investments attributable to the Operating Partnership ⁽¹⁾	(7,794		)	807			(11,333		)	13,662
Less loss (income) attributable to noncontrolling interests in the Operating Partnership	485			(49		)	706			(843		)
(Loss) income from real estate fund investments attributable to Vornado	$	(7,309	)	$	758		$	(10,627	)	$	12,819

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(1)	Excludes $744 and $804 of management and leasing fees for the three months ended September 30, 2017 and 2016, respectively, and $3,125 and $2,499 for the nine months ended September 30, 2017 and 2016, respectively, which are included as a component of "fee and other income" on our consolidated statements of income.