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| <NonNumbericText> <div> <div><!-- 2.0.3657.28464 --><div><!-- body --><div style="font-family: 'Times New Roman', serif;"> <p style="margin: 0in 0in 12pt;" class="BLDHEADII"><strong><font class="_mt" size="2">19.<font style="mso-tab-count: 1;" class="_mt"> Related Party Transactions</font></font></strong></p> <h3 style="text-indent: -20.25pt; margin: 0in 0in 0pt 22.5pt;"><em><font class="_mt" size="2">Transactions with Affiliates and Officers and Trustees</font></em></h3> <p style="margin: 0in 0in 0pt;" class="Bodytext"><font class="_mt" size="2"> </font></p> <p style="margin: 0in 0in 0pt;" class="Heading3ind2"><em><font class="_mt" size="2">Alexander’s</font></em></p> <p style="margin: 0in 0in 0pt;" class="Bodytext"><font class="_mt" size="2"> </font></p> <p style="margin: 0in 0in 0pt;" class="Bodytext"><font class="_mt" size="2">We own 32.4% of Alexander’s. Steven Roth, the Chairman of our Board, and Michael D. Fascitelli, our President and Chief Executive Officer, are officers and directors of Alexander’s. <font style="mso-spacerun: yes;" class="_mt"> We provide various services to Alexander’s in accordance with management, development and leasing agreements. <font style="mso-spacerun: yes;" class="_mt"> These agreements are described in Note 3 - Investments in Partially Owned Entities.</font></font></font></p> <p style="margin: 0in 0in 0pt;" class="Bodytext"><font class="_mt" size="2"> </font></p> <p style="margin: 0in 0in 0pt;" class="Bodytext"><font class="_mt" size="2">On March 2, 2009, Mr. Roth and Mr. Fascitelli each exercised 150,000 stock appreciation rights (“SARs”) which were scheduled to expire on March 4, 2009 and each received gross proceeds of $11,419,000.</font></p> <p style="margin: 0in 0in 0pt;" class="Bodytext"><font class="_mt" size="2"> </font></p> <p style="margin: 0in 0in 0pt;" class="Bodytext"><font class="_mt" size="2">On September 9, 2008, Alexander’s Board of Directors declared a special dividend of $7.00 per share, payable on October 30, 2008, to shareholders of record on October 14, 2008.<font style="mso-spacerun: yes;" class="_mt"> The dividend was attributable to the liquidation of the wholly owned 731 Lexington Avenue taxable REIT subsidiary into Alexander’s.<font style="mso-spacerun: yes;" class="_mt"> Accordingly, on October 30, we received $11,578,000, which was accounted for as a reduction of our investment in Alexander’s.</font></font></font></p> <p style="margin: 0in 0in 0pt;" class="Bodytext"><font class="_mt" size="2"> </font></p> <p style="margin: 0in 0in 0pt;" class="BodyTextFirstLine6"><font class="_mt" size="2">On September 15, 2008 and October 14, 2008, Mr. Roth exercised an aggregate of 200,000 SARs which were scheduled to expire on March 4, 2009 and received gross proceeds of $62,809,000.<font style="mso-spacerun: yes;" class="_mt"> </font></font></p> <p style="margin: 0in 0in 0pt;" class="BodyTextFirstLine6"><font class="_mt" size="2"> </font></p> <p style="margin: 0in 0in 0pt;" class="Bodytext"><font class="_mt" size="2"> </font></p> <p style="margin: 0in 0in 0pt;" class="Heading3ind2"><em><font class="_mt" size="2">Interstate Properties (“Interstate”)</font></em></p> <p style="margin: 0in 0in 0pt;" class="Bodytext"><font class="_mt" size="2"> </font></p> <p style="margin: 0in 0in 0pt;" class="Bodytext"><font class="_mt" size="2">Interstate is a general partnership in which Mr. Roth is the managing general partner. David Mandelbaum and Russell B. Wight, Jr., Trustees of Vornado and Directors of Alexander’s, are Interstate’s two other partners. As of December 31, 2009, Interstate and its partners beneficially owned approximately 7.3% of the common shares of beneficial interest of Vornado and 27.2% of Alexander’s common stock.</font></p> <p style="margin: 0in 0in 0pt;" class="Bodytext"><font class="_mt" size="2"> </font></p> <p style="margin: 0in 0in 0pt;" class="Bodytext"><font class="_mt" size="2">We manage and lease the real estate assets of Interstate pursuant to a management agreement for which we receive an annual fee equal to 4% of annual base rent and percentage rent. The management agreement has a term of one year and is automatically renewable unless terminated by either of the parties on sixty days’ notice at the end of the term. We believe, based upon comparable fees charged by other real estate companies, that the management agreement terms are fair to us. We earned $782,000, $803,000 and $800,000 of management fees under the agreement for the years ended December 31, 2009, 2008 and 2007.</font></p> </div><!-- body --></div></div> </div> </NonNumbericText> |
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