Vornado (NYSE:VNO) is just good at real estate, making money in a mind-boggling multitude of ways.

Adjusted FFO per share -- a measure of cash flow -- increased to $1.66 in the first quarter, up 17% versus last year. Results were undoubtedly helped by Vornado's exposure to robust markets like Manhattan, where limited supply and extremely healthy demand allowed the company to raise rental rates. During the quarter, Vornado increased its bets by spending $689 million for a Manhattan mall and $165 million for a Bronx shopping center, and making a $1.8 billion investment for 70% ownership in office buildings in Manhattan and San Francisco (another city with a limited supply of land), with the other 30% owned by Donald Trump.

Vornado has also made a ton of dough betting on stocks with unappreciated real estate value. For example, the company bought 858,000 shares of McDonald's (NYSE:MCD) at $29.54 per share, and synthetically bought 13.7 million additional shares at $32.70. Those shares are currently trading at $49 per share. By my calculations, Vornado has reaped around $240 million in gains on that investment alone. Investors might want to take a look at two other REITs in Vornado's portfolio, GMH Communities (NYSE:GCT) and Alexander's (NYSE:ALX).

It's no surprise that Vornado continues to perform. CEO Steve Roth is possibly the best in the business, and he's assembled a treasure trove of real estate properties that benefit from tantalizing imbalances in supply and demand.

Further Foolishness:

Fool contributor Emil Lee is an analyst and a disciple of value investing. He doesn't own shares in any of the companies mentioned above. Emil appreciates your comments, concerns, and complaints. The Motley Fool has a disclosure policy.