Income Per Class A Unit

6 Months Ended

Jun. 30, 2016

19. 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 includes 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 stock options and restricted unit awards.

(Amounts in thousands, except per unit amounts)			For the Three Months Ended				For the Six Months Ended
			June 30,				June 30,
			2016		2015		2016		2015
Numerator:
	Income from continuing operations, net of income
		attributable to noncontrolling interests	$	252,882	$	196,578	$	150,880	$	289,763
	Income (loss) from discontinued operations			2,475		(364)		3,191		15,815
	Net income attributable to Vornado Realty L.P.			255,357		196,214		154,071		305,578
	Preferred unit distributions			(20,412)		(20,414)		(40,824)		(39,910)
	Net income attributable to Class A unitholders			234,945		175,800		113,247		265,668
	Earnings allocated to unvested participating securities			(1,059)		(1,183)		(1,412)		(1,781)
	Numerator for basic income per Class A unit			233,886		174,617		111,835		263,887
	Impact of assumed conversions:
		Convertible preferred unit distributions		22		23		-		47
	Numerator for diluted income per Class A unit		$	233,908	$	174,640	$	111,835	$	263,934

Denominator:
	Denominator for basic income per Class A unit – weighted
		average units		200,369		199,038		200,220		198,857
	Effect of dilutive securities⁽¹⁾:
		Vornado stock options and restricted unit awards		1,564		1,750		1,601		1,930
		Convertible preferred units		42		45		-		46
	Denominator for diluted income per Class A unit – weighted
		average units and assumed conversions		201,975		200,833		201,821		200,833

INCOME PER CLASS A UNIT – BASIC:
	Income from continuing operations, net		$	1.16	$	0.88	$	0.54	$	1.25
	Income from discontinued operations, net			0.01		-		0.02		0.08
	Net income per Class A unit		$	1.17	$	0.88	$	0.56	$	1.33

INCOME PER CLASS A UNIT – DILUTED:
	Income from continuing operations, net		$	1.15	$	0.87	$	0.54	$	1.23
	Income from discontinued operations, net			0.01		-		0.01		0.08
	Net income per Class A unit		$	1.16	$	0.87	$	0.55	$	1.31


(1)	The effect of dilutive securities for the three months ended June 30, 2016 and 2015 excludes an aggregate of 187 and 148 weighted average Class A unit equivalents, respectively, and 231 and 151 weighted average Class A unit equivalents for the six months ended June 30, 2016 and 2015, respectively, as their effect was anti-dilutive.