Stockholders Equity and Earnings Per Share

6 Months Ended

Jun. 30, 2011

Stockholders' Equity and Earnings Per Share [Abstract]

Stockholders' Equity and Earnings Per Share

10. Stockholders’ Equity and Earnings Per Share

In May 2011, we completed an underwritten public offering and concurrent private placement of approximately 6.0 million shares of our common stock at a price to the public and in the private placement of $19.42 per share. In the concurrent private placement, an aggregate of 1.0 million shares were purchased by MGN (USA), Inc. an affiliate of our largest stockholder, Gazit-Globe, Ltd., which may be deemed to be controlled by Chaim Katzman, the Chairman of our Board of Directors. The offerings generated proceeds to us of approximately $115.7 million, net of stock issuance costs and underwriting discounts of $858,000.

At the closing of the CapCo acquisition on January 4, 2011, LIH contributed all of the outstanding shares of CapCo’s common stock to a joint venture between us and LIH in exchange for approximately 11.4 million Class A joint venture shares. The Class A joint venture shares are redeemable by the joint venture upon LIH’s option until the tenth anniversary of the closing of the CapCo transaction for cash or, solely at our option, shares of our common stock on a one-for-one basis, subject to certain adjustments.

Also in connection with the CapCo acquisition on January 4, 2011, LIH transferred and assigned to us an outstanding promissory note of CapCo in the amount of $67.0 million in exchange for 4.1 million shares of our common stock and one share of a newly-established class of our capital stock, Class A common stock, that (i) is convertible into 10,000 shares of our common stock in certain circumstances, and (ii) subject to certain limitations, entitles LIH to voting rights with respect to a number of shares of our common stock determined with reference to the number of joint venture shares held by LIH from time to time. Effective June 29, 2011, the one share of Class A common stock was converted in accordance with its terms into 10,000 shares of our common stock.

In March 2010, we completed an underwritten public offering and concurrent private placement of approximately 5.4 million shares of our common stock at a price to the public and in the private placement of $18.40 per share. In the concurrent private placement, an aggregate of 600,000 shares were purchased by MGN America, LLC and Silver Maple (2001), Inc., affiliates of our largest stockholder, Gazit-Globe, Ltd. The offerings generated proceeds to us of approximately $98.9 million, net of stock issuance costs of $1.0 million.

Earnings per Share

The following summarizes the calculation of basic EPS and provides a reconciliation of the amounts of net income available to common stockholders and shares of common stock used in calculating basic EPS:

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2011			2010			2011			2010
	(Dollars in thousands, except per share amounts)
Income from continuing operations	$	10,469		$	4,747		$	70,954		$	9,451
Net (income) loss attributable to noncontrolling interests		(2,135	)		10			(4,517	)		647
Income from continuing operations attributable to Equity One, Inc.		8,334			4,757			66,437			10,098
Allocation of continuing income to restricted stock awards and Class A common stockholder		(295	)		(76	)		(818	)		(152	)
Income from continuing operations attributable to common stockholders		8,039			4,681			65,619			9,946
(Loss) income from discontinued operations attributable to common stockholders		(900	)		1,482			(516	)		1,573
Allocation of discontinued loss to restricted share awards and Class A common stockholder		—			(6	)		—			(3	)
(Loss) income from discontinued operations attributable to common stockholders		(900	)		1,476			(516	)		1,570
Net income available to common stockholders	$	7,139		$	6,157		$	65,103		$	11,516
Weighted average shares outstanding — Basic		108,942			92,141			107,605			89,939
Basic earnings per share attributable to the common stockholders:
Basic earnings per share from continuing operations	$	0.07		$	0.05		$	0.61		$	0.11
Basic earnings (loss) per share from discontinued operations		(0.01	)		0.02			—			0.02
Earnings per common share — Basic	$	0.07	*	$	0.07		$	0.61		$	0.13

* Note: Basic EPS for the three months ended June 30, 2011 does not foot due to the rounding of the individual calculations.

The following summarizes the calculation of diluted EPS and provides a reconciliation of the amounts of net income available to common stockholders and shares of common stock used in calculating diluted EPS:

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2011			2010			2011			2010
	(Dollars in thousands, except per share amounts)
Income from continuing operations	$	10,469		$	4,747		$	70,954		$	9,451
Net (income) loss attributable to noncontrolling interests		(2,135	)		10			(4,517	)		647
Income from continuing operations attributable to Equity One, Inc.		8,334			4,757			66,437			10,098
Allocation of continuing income to restricted share awards and to Class A common stockholder		(295	)		(76	)		(797	)		(152	)
Allocation of earnings associated with DIM contingent shares		—			—			—			(88	)
Income attributable to convertible EQY-CSC partnership units shareholders		—			—			4,523			—
Income from continuing operations attributable to common stockholders	$	8,039		$	4,681		$	70,163		$	9,858
(Loss) income from discontinued operations		(900	)		1,482			(516	)		1,573
Allocation of discontinued loss to restricted share awards and to Class A common stockholder		—			(6	)		—			(3	)
(Loss) income from discontinued operations attributable to common stockholders		(900	)		1,476			(516	)		1,570
Net income available to common stockholders	$	7,139		$	6,157		$	69,647		$	11,428
Weighted average shares outstanding — Basic		108,942			92,141			107,605			89,939
Convertible EQY-CSC partnership units		—			—			11,107			—
Stock options using the treasury method		170			114			163			114
Contingent shares to be issued for DIM stock		—			—			—			145
Weighted average shares outstanding — Diluted		109,112			92,255			118,875			90,198
Diluted earnings per share attributable to the common stockholders:
Diluted earnings per share from continuing operations	$	0.07		$	0.05		$	0.59		$	0.11
Diluted (loss) earnings per share from discontinued operations		(0.01	)		0.02			—			0.02
Earnings per common share — Diluted	$	0.07	*	$	0.07		$	0.59		$	0.13

* Note: Diluted EPS for the three months ended June 30, 2011 does not foot due to the rounding of the individual calculations.

The computation of diluted EPS for both the three and six months ended June 30, 2011 did not include 1.9 million shares of common stock, at prices ranging from $19.84 to $26.66 and $18.88 to $26.66, respectively, because the option prices were greater than the average market prices of our common shares during these respective periods. The computation of diluted EPS for both the three and six months ended June 30, 2010 did not include 1.5 million shares of common stock, at prices ranging from $21.64 to $28.05, because the option prices were greater than the average market prices of our common shares during these respective periods.