1040765--3/9/2006--VORNADO_REALTY

related topics

{loan, real, estate}

{investment, property, distribution}

{regulation, change, law}

{debt, indebtedness, cash}

{operation, natural, condition}

{competitive, industry, competition}

{acquisition, growth, future}

{condition, economic, financial}

{stock, price, share}

{cost, regulation, environmental}

{loss, insurance, financial}

{personnel, key, retain}

We depend on leasing space to tenants on economically favorable terms and collecting rent from our tenants, who may not be able to pay. Bankruptcy or insolvency of tenants may decrease our revenues and available cash. Real estate is a competitive business. We may incur costs to comply with environmental laws. Some of our potential losses may not be covered by insurance. Sub-Limits for Acts of Terrorism Because we operate one hotel property, we face the risks associated with the hospitality industry. Because of the ownership structure of our hotel, we face potential adverse effects from changes to the applicable tax laws. Compliance or failure to comply with the Americans with Disabilities Act or other safety regulations and requirements could result in substantial costs. A significant portion of our properties are in the New York City/New Jersey and Washington, D.C. metropolitan areas and are affected by the economic cycles and risks inherent to those areas. Terrorist attacks, such as those of September 11, 2001 in New York City and the Washington, D.C. area, may adversely affect the value of our properties and our ability to generate cash flow. We have grown rapidly through acquisitions. We may not be able to maintain this rapid growth and our failure to do so could adversely affect our stock price. We may acquire or develop properties or acquire other real estate related companies and this may create risks. It may be difficult to buy and sell real estate quickly. We may not be permitted to dispose of certain properties or pay down the debt associated with those properties when we might otherwise desire to do so without incurring additional costs. On January 1, 2002, we completed the acquisition of the 66% interest in Charles E. Smith Commercial Realty L.P. that we did not previously own. The terms of the merger restrict our ability to sell or otherwise dispose of, or to finance or refinance, the properties formerly owned by Charles E. Smith Commercial Realty L.P., which could result in our inability to sell these properties at an opportune time and increased costs to us. From time to time we make investments in companies over which we do not have sole control. Some of these companies operate in industries that differ from our current operations, with different risks than investing in real estate. We are subject to risks that affect the general retail environment. We depend upon our anchor tenants to attract shoppers. Our investment in Toys R Us, Inc. subjects us to risks different from our other lines of business and may result in increased seasonality and volatility in our reported earnings. We May Not Be Able to Obtain Capital to Make Investments. We have indebtedness, and this indebtedness, and its cost, may increase. Covenants in our debt instruments could adversely affect our financial condition and our acquisitions and development activities. Loss of our key personnel could harm our operations and adversely affect the value of our common units. Steven Roth and Interstate Properties may exercise substantial influence over us. They and some of our other trustees and officers have interests or positions in other entities that may compete with us. There may be conflicts of interest between Alexander s and us.

Full 10-K form ▸

1040765--3/9/2006--VORNADO_REALTY_LP