Income Per Class A Unit

9 Months Ended

Sep. 30, 2016

20. 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, restricted unit awards and Out-Performance Plan awards.

(Amounts in thousands, except per unit amounts)			For the Three Months Ended				For the Nine Months Ended
			September 30,				September 30,
			2016		2015		2016		2015
Numerator:
	Income from continuing operations, net of income
		attributable to noncontrolling interests	$	93,977	$	197,475	$	244,857	$	487,238
	Income from discontinued operations			2,969		34,463		6,160		50,278
	Net income attributable to Vornado Realty L.P.			96,946		231,938		251,017		537,516
	Preferred unit distributions			(19,096)		(20,412)		(59,920)		(60,322)
	Preferred unit issuance costs (Series J redemption)			(7,408)		-		(7,408)		-
	Net income attributable to Class A unitholders			70,442		211,526		183,689		477,194
	Earnings allocated to unvested participating securities			(589)		(1,053)		(2,001)		(2,862)
	Numerator for basic income per Class A unit			69,853		210,473		181,688		474,332
	Impact of assumed conversions:
		Convertible preferred unit distributions		-		23		-		69
	Numerator for diluted income per Class A unit		$	69,853	$	210,496	$	181,688	$	474,401

Denominator:
	Denominator for basic income per Class A unit – weighted
		average units		200,458		199,609		200,300		199,111
	Effect of dilutive securities⁽¹⁾:
		Vornado stock options and restricted unit awards		1,683		1,619		1,632		1,824
		Convertible preferred units		-		45		-		45
	Denominator for diluted income per Class A unit – weighted
		average units and assumed conversions		202,141		201,273		201,932		200,980

INCOME PER CLASS A UNIT – BASIC:
	Income from continuing operations, net		$	0.33	$	0.88	$	0.88	$	2.13
	Income from discontinued operations, net			0.02		0.17		0.03		0.25
	Net income per Class A unit		$	0.35	$	1.05	$	0.91	$	2.38

INCOME PER CLASS A UNIT – DILUTED:
	Income from continuing operations, net		$	0.33	$	0.88	$	0.87	$	2.11
	Income from discontinued operations, net			0.02		0.17		0.03		0.25
	Net income per Class A unit		$	0.35	$	1.05	$	0.90	$	2.36


(1)	The effect of dilutive securities for the three months ended September 30, 2016 and 2015 excludes an aggregate of 222 and 180 weighted average Class A unit equivalents, respectively, and 226 and 150 weighted average Class A unit equivalents for the nine months ended September 30, 2016 and 2015, respectively, as their effect was anti-dilutive.