Retail

Sandeep Mathrani, Executive Vice President - Retail, and his team contributed full measure to Vornado's great 2006. Retail leased 1.2 million square feet, twice the scheduled expiries, at an amazing 33% mark-to-market. Sandeep's pace of acquisitions accelerated to over $900 million in 2006, investing in great assets like Springfield Mall, Manhattan Mall, and the Virgin Times Square block front. Milestones include the first ever JCPenney store in Manhattan, Rego Park's⁽³⁾ groundbreaking scheduled for May and Bergen Town Center's approvals and construction start. The retail group currently has 28 separate projects in the development pipeline or under construction, see Appendix III. Welcome to Steve Cassella and Peter Michelis.

(3) an Alexander's asset

Merchandise Mart

In 2006, Chris Kennedy's Merchandise Mart business had a 1.9% same store increase, generating $139.2 million of EBITDA, which was $7.3 million more than 2005, after adjusting for a $13.4 million lease termination payment. Chris and his team added to their already significant trade show business by acquiring a Canadian operator whose focus is building and construction trade shows and the Art Chicago trade show. Our 2007 and 2008 goal is to find more external growth opportunities for this management team. Special kudos to Mark Falanga and Myron Maurer.

Hotel Pennsylvania

The Hotel Pennsylvania generated $27.5 million of EBITDA in 2006, $5 million more than in 2005, or a 22% increase. 2007's budget is higher yet.

Americold

Thanks to Tony Schnug, CEO, and Neil Rider, COO, of AmeriCold. Adjusting for FEMA/Hurricane Katrina activity in 2005, 2006 numbers held their own.