Vornado Realty Trust, co-owners and developers of the currently stalled Filene’s redevelopment project in downtown Boston, said second-quarter funds from operations fell 53 percent, due in part to charges related to its loss reserves and accounting adjustments.

FFO totaled $93.5 million, or 54 cents per share, compared with $200.8 million, or $1.19 per share, a year earlier, the owner of office buildings and retail properties reported on Tuesday.

Adjusting for gains for early extinguishment of debt, impairment losses, accounting adjustments and other one-time items, FFO was $186.2 million, or $1.07 per share, compared with $205.0 million, or $1.21 per share, a year earlier.

The results trailed the average Wall Street forecast of $1.09 per share, primarily due to lower investment returns, including Vornado’s interest in Filene’s Basement.

FFO, a performance measure of a real estate investment trust, removes the profit-reducing effect of depreciation, a noncash accounting item.

In their quarterly filing, Vornado disclosed a $7.65 million expense for what it termed "our share of the Filene’s, Boston lease termination payment." In June, Vornado and retailer Syms Corp. bought the assets of Filene’s Basement in a bankruptcy auction for $63 million in cash. The bid was seen as a maneuver to reclaim the basement’s cheap lease at its flagship location.

During the quarter, earnings before interest, taxes, depreciation and amortization (EBITDA) at Vornado’s New York City office properties rose 1.7 percent from a year earlier.

In its Washington, D.C.-area portfolio of office buildings, EBITDA was up 6.2 percent.

Its retail properties posted EBITDA growth of 2 percent.

But EBITDA at its Merchandise Mart office and showroom portfolio of Chicago properties dropped 20 percent.

(Banker & Tradesman Staff Writer Paul McMorrow contributed to this report.)