Vornado Realty Trust (VNO) will raise its quarterly dividend from $0.63 to $0.71 per share. The next dividend will be payable on February 15, 2017 to shareholders of record on January 30, 2017.

The 2016 annual dividend was $2.52 per share, which included $.15 per share of income from the sale of an interest in 7 West 34th Street, partially offset by a loss on the disposition of the Skyline properties.

Vornado's Washington DC business accounts for $.56 per share of both the 2017 and the 2016 annual dividends. As previously announced, this business is expected to be spun-off from Vornado and merged with the JBG Companies to form JBG SMITH in the second quarter of 2017.

Taxable income included in the 2017 annual dividend attributable to fees and interest charged by Vornado to its TRS which is developing the 220 Central Park South residential condominium is projected to be $.48 per share. In the 2016 annual dividend, the taxable income from 220 Central Park South was $.33 per share. The taxable income from 220 Central Park South began in 2015 when construction commenced and is expected to end in 2019 when the project is completed.

Adjusting for the above items, Vornado's recurring taxable income included in the 2016 annual dividend was $1.48 per share, which is being increased $.32 per share or 21.6% to a 2017 annual dividend rate of $1.80 per share.

Vornado Realty Trust is a fully-integrated real estate operating company. The  company operates through two segments: New York and Washington, DC. The company holds office, residential and hotel properties, including the 3.7 million square foot Mart (theMart) in Chicago and Manhattan street retail, residential and office space, including Hotel Pennsylvania located on Seventh Avenue at 33rd Street in the heart of the Penn District and 220 Central Park South, a 950-foot super-tall luxury residential condominium tower containing 400,000 salable square feet.