Income Per Class A Unit

9 Months Ended

Sep. 30, 2011

17. Income Per Class A Unit

The following table provides a reconciliation of both net income and the number of Class A units used in the computation of (i) basic income per Class A unit - which utilizes the weighted average number of Class A units outstanding without regard to dilutive potential Class A units, and (ii) diluted income per Class A unit - which includes the weighted average Class A units and dilutive unit equivalents. Dilutive unit equivalents may include our Series A convertible preferred units, Vornado's stock options, restricted units and exchangeable senior debentures.

			For the Three Months				For the Nine Months
(Amounts in thousands, except per unit amounts)			Ended September 30,				Ended September 30,
			2011		2010		2011		2010
Numerator:
	Income from continuing operations		$	62,540	$	119,799	$	496,720	$	437,568
	Income (loss) from discontinued operations			3,683		(3,667)		146,293		(11,681)
	Net income			66,223		116,132		643,013		425,887
	Net income attributable to noncontrolling interests			(5,636)		(296)		(20,643)		(1,490)
	Net income attributable to Vornado Realty L.P.			60,587		115,836		622,370		424,397
	Preferred unit distributions			(21,655)		(17,907)		(58,722)		(48,677)
	Discount on preferred unit redemptions			5,000		4,382		5,000		4,382
	Net income attributable to Class A unitholders			43,932		102,311		568,648		380,102
	Earnings allocated to unvested participating securities			(706)		(848)		(2,721)		(2,570)
	Numerator for basic income per Class A unit			43,226		101,463		565,927		377,532
	Impact of assumed conversions:
		Convertible preferred unit distributions		-		-		94		121
	Numerator for diluted income per Class A unit		$	43,226	$	101,463	$	566,021	$	377,653

Denominator:
	Denominator for basic income per Class A unit –
		weighted average units		196,239		195,240		196,090		194,824
	Effect of dilutive securities⁽¹⁾:
		Vornado's stock options and restricted unit awards		2,066		2,212		2,135		2,290
		Convertible preferred units		-		-		55		71
	Denominator for diluted income per Class A unit –
		weighted average units and assumed conversions		198,305		197,452		198,280		197,185

INCOME PER CLASS A UNIT – BASIC:
	Income from continuing operations		$	0.20	$	0.54	$	2.14	$	2.00
	Income (loss) from discontinued operations			0.02		(0.02)		0.75		(0.06)
	Net income per Class A unit		$	0.22	$	0.52	$	2.89	$	1.94

INCOME PER CLASS A UNIT – DILUTED:
	Income from continuing operations		$	0.20	$	0.53	$	2.11	$	1.98
	Income (loss) from discontinued operations			0.02		(0.02)		0.74		(0.06)
	Net income per Class A unit		$	0.22	$	0.51	$	2.85	$	1.92


(1)		The effect of dilutive securities above excludes anti-dilutive weighted average Class A unit equivalents of 6,617 and 6,553 in the three months ended September 30, 2011 and 2010, respectively, and 6,446 and 6,483 in the nine months ended September 30, 2011 and 2010, respectively.